bme financial results 1h2012

- 1 -

July 2012

Business Evolution January – June 2012

Business Performance

First Half 2012

- 2 -

July 2012


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- 3 -

July 2012


Index

A. Results

B. Business Overview

C. Financials

D. Business Drivers

- 4 -

July 2012


Index

A. Results


C. Financials

D. Business Drivers

- 5 -

July 2012


Results Net Profit

The quarterly result increases by 5.7% compared to 2Q11

(8.5% compared to 1Q12)

(€ Million)

+ 5.7%

36.540.5

36.7 35.538.5

2Q11 3Q11 4Q11 1Q12 2Q12

+ 8.5%

- 6 -

July 2012


Profit and Loss Account 1H12

Thousands of € 2Q 2012 2Q 2011 % 1H 2012 1H 2011 %

Revenues 81,200 76,832 5.7% 158,586 161,742 -2.0%

Expenses (25,757) (25,105) 2.6% (50,837) (49,627) 2.4%

EBITDA 55,443 51,727 7.2% 107,749 112,115 -3.9%

EBIT 53,441 49,820 7.3% 103,688 108,273 -4.2%

Financial results 1,051 1,452 -27.6% 1,592 2,158 -26.2%

EBT 54,321 51,334 5.8% 104,961 110,339 -4.9%

Net Profit 38,532 36,466 5.7% 74,045 77,946 -5.0%

- 7 -

July 2012


Dividends: Maximizing shareholders returns

Pay-out Dividend proposal: maintenance of dividend/share

Proposed interim dividend: 0.4 € / share - September 7th

0.956 0.986

0.40 0.40 0.40 0.40

0.60 0.60 0.60

1.016 0.986

0.60 0.60 0.60

0.372 0.372 0.372

2007 2008 2009 2010 2011 2012

First Interim Dividend Second Interim Dividend Suplementary Dividend Extraordinary Dividend

1.972 1.972Total Dividends /Share

Pay Out 82% 86%

1.9721.9721.972

Pay Out 89% 86% 86%

- 8 -

July 2012


Index

A. Results


C. Financials

D. Business Drivers

- 9 -

July 2012


Business Areas

Consolidated Revenues

1H 2012 - %

EBITDA

1H 2012 - %

Equity 38.3%

Clearing & Settlement

26.4%

Listing 7.3%

Information 11.2%

Derivatives 8.0%

Fixed Income

3.4%

IT & Consulting

5.3%

Equity 39.1%

Clearing & Settlement

30.4%

Listing 6.1%

Information 12.3%

Derivatives 6.0%

Fixed Income 3.4%

IT & Consulting

2.7%

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July 2012


238 235

207

177

199

38.2 41.3 40.8 47.758.5

10.512.4

10.2 11.3

13.5

2Q11 3Q11 4Q11 1Q12 2Q12M

ile

s d

e m

illo

ne

s

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

Equity Market

Equity (Turnover, volume and shares traded)

Strong increase in transactional activity (trades and titles) that moderates the effect of

the fall of turnover

82 83

74

105

71

59

78

69

59

70

46

6166

7063

18.1

9.3 10.821.7 10.0 9.7

24.8

8.2 7.9

28.1

6.712.9

25.715.1 17.6

3.5 3.4 3.54.2 4.5

3.7 4.03.4

2.8

3.93.4

4.04.6

4.84.1

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

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


Revenues 29,909 30,514 -2.0% 60,093 68,906 -12.8%

Expenses (7,985) (8,134) -1.8% (16,200) (16,111) 0.6%

EBITDA 21,924 22,380 -2.0% 43,893 52,795 -16.9%

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July 2012


1,615 1,612 1,6641,728 1,724

2Q11 3Q11 4Q11 1Q12 2Q12

10.4

11.8 11.9 11.5

14.0

2Q11 3Q11 4Q11 1Q12 2Q12

Clearing and Settlement

Settlement: Number of trades settled

(Million of trades)

Securities under custody: Nominal value

(Billion €)

Good performance of the activities of Registration and Services to Issuers


Revenues 21,854 18,813 16.2% 41,382 37,798 9.5%

Expenses (3,751) (3,622) 3.6% (7,211) (6,919) 4.2%

EBITDA 18,103 15,191 19.2% 34,171 30,879 10.7%

- 12 -

July 2012


100 102108 108 105

4.43.9

3.13.6 3.5

2Q11 3Q11 4Q11 1Q12 2Q12

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

Market Data & Information

Information: Subscribers to primary market sources (Average for the

period in thousands of subscribers and millions of accesses per quote)

New products and increase of clients


Revenues 8,701 8,346 4.3% 17,557 16,187 8.5%

Expenses (1,846) (1,840) 0.3% (3,697) (3,234) 14.3%

EBITDA 6,855 6,506 5.4% 13,860 12,953 7.0%

- 13 -

July 2012


2Q11 3Q11 4Q11 1Q12 2Q12

127.4

68.3

85.1

36.5

103.0

Listing

AIAF: New listings (Billion €)

Commercial

paper

Corporate

bonds

MBS ABS Preferred

securities

Increasing contribution of capital increases

• Companies raise funds through

capital and scrip dividends.

Investment flows channeled through

the Exchange in listed companies

reached 11,986 million in the first 6

months, a 125.3% increase in

quarter and 18.0% in the semester.

• Private fixed income rose 24.7% in

the quarter and 52.8% in the

semester (212,540 million)


Revenues 5,375 5,328 0.9% 11,466 11,580 -1.0%

Expenses (2,314) (2,318) -0.2% (4,629) (4,635) -0.1%

EBITDA 3,061 3,010 1.7% 6,837 6,945 -1.6%

- 14 -

July 2012


1,281

1,683

2,8562,705

723954

1,6231,450

502

1,058 989

1,540

2Q11 2Q12 1H11 1H12

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

8,437

6,358

16,443

13,446

6,164

8,269

14,532

17,714

2Q11 2Q12 1H11 1H12

Stock Futures Stock Options

Derivatives

Stock derivatives contracts traded Index derivatives contracts traded

Positive developments in all the instruments on IBEX 35 ®

(Thousand of contracts) (Thousand of contracts)


Revenues 7,157 5,712 25.3% 12,608 12,541 0.5%

Expenses (2,899) (2,907) -0.3% (5,812) (5,686) 2.2%

EBITDA 4,258 2,805 51.8% 6,796 6,855 -0.9%

- 15 -

July 2012


2Q11 3Q11 4Q11 1Q12 2Q12

753

1.202

499

1,190 1,226

Fixed income

AIAF – Turnover (Billion €)

MBS&

ABS

Commercial

paper

Corporate

bonds

Preferred

securities

Maintaining the positive trend

Like previous quarter,

significant increase in trading

to maturity (54.6%) and

decrease in "repos" and

simultaneous (-66.3%)


Revenues 2,403 2,347 2.4% 5,308 4,645 14.3%

Expenses (773) (747) 3.5% (1,527) (1,476) 3.5%

EBITDA 1,630 1,600 1.9% 3,781 3,169 19.3%

- 16 -

July 2012


IT & Consulting

Sustained growth in the second quarter

Trading support services

Continuity & Contingency

Compliance (SIR,SICAM,RIC)

Financial Comunication (Highway)

Increase in connection services (Proximity) and MaX terminals

Product services evolution (Hosting & Housing) and developing new services of cloud

computing (BME inCloud)

International expansion of services and developing Market Abuse phase II according to

new ESMA guidelines

Increased coverage by region and entity


Revenues 4,184 4,043 3.5% 8,286 7,733 7.2%

Expenses (2,671) (2,643) 1.1% (5,289) (5,310) -0.4%

EBITDA 1,513 1,400 8.1% 2,997 2,423 23.7%

- 17 -

July 2012


Breakdown by business areas

€ Thousand 1H 2012 1H 2011 % 1H 2012 1H 2011 %

Equity Market 60,093 68,906 -12.8% 43,893 52,795 -16.9%

Clearing & Settlement 41,382 37,798 9.5% 34,171 30,879 10.7%

Listing 11,466 11,580 -1.0% 6,837 6,945 -1.6%

Market Data & Information 17,557 16,187 8.5% 13,860 12,953 7.0%

Derivatives 12,608 12,541 0.5% 6,796 6,855 -0.9%

IT & Consulting 8,286 7,733 7.2% 2,997 2,423 23.7%

Fixed income 5,308 4,645 14.3% 3,781 3,169 19.3%

REVENUES EBITDA

- 18 -

July 2012


Index

A. Results


C. Financials

D. Business Drivers

- 19 -

July 2012


Balance sheet

as of June, 30th

(Thousands of €)2012 2011

Goodwill 82,190 82,190

Other non-current assets 85,822 87,452

Cash and cash equivalents 317,485 347,851

Non-Group current financial assets 37,881,162 34,914,981

Other current assets 107,046 81,679

Total assets 38,473,705 35,514,153

Equity 433,459 444,474

Non-current liabilities 18,531 15,313

Current liabilities 38,021,715 35,054,366

Total equity and liabilities 38,473,705 35,514,153

- 20 -

July 2012


P/L


Revenues 81,200 76,832 5.7% 158,586 161,742 -2.0%

Expenses (25,757) (25,105) 2.6% (50,837) (49,627) 2.4%

EBITDA 55,443 51,727 7.2% 107,749 112,115 -3.9%

EBIT 53,441 49,820 7.3% 103,688 108,273 -4.2%

Financial results 1,051 1,452 -27.6% 1,592 2,158 -26.2%

EBT 54,321 51,334 5.8% 104,961 110,339 -4.9%

Net Profit 38,532 36,466 5.7% 74,045 77,946 -5.0%

- 21 -

July 2012


EBITDA 1H 2012/2011 [€ Mill.] Net Profit 1H 2012/2011 [€ Mill.]

Comparison with 1H 2011

Revenues 1H 2012/2011 Costs 1H 2012/2011

Margins

[€ Mill.] [€ Mill.]

158.6161.7

1H 2012 1H 2011

-2.0% + 2.4%

50.849.6

1H 2012 1H 2011

- 3.9%

107.7 112.1

1H 2012 1H 2011

- 5.0%

74.0 77.9

1H 2012 1H 2011

- 22 -

July 2012


31.7% 32.7% 32.1% 30.7%

2Q12 2Q11 1H12 1H11

48.2% 50.4% 49.0% 45.8%

2Q12 2Q11 1H12 1H11

65.8% 64.8% 65.4% 66.9%

2Q12 2Q11 1H12 1H11

Efficiency & Profitability ROE Evolution EBIT/Revenues Ratio Evolution

% ROE % EBIT/Revenues

% Cost/EBIT % Efficiency

Efficiency Ratio Evolution Cost/EBIT Ratio Evolution

34.1% 31.4% 34.1% 35.1%

2Q12 2Q11 1H12 1H11

- 23 -

July 2012


Index

A. Results


C. Financials

D. Business Drivers

- 24 -

July 2012


Business drivers: Highly liquid market

Company RK

1H12 Daily avg. 1H12 Relative weight at

EuroStoxx50 (%)1) Turnover (Billion €) Turnover (Billion €)

Source: Bloomberg 1) As of 30/06/2012

• Spanish blue-chips are the most liquid stocks in the EMU

75.6

75.1

57.5

50.7

49.7

49.1

49.0

47.6

46.8

44.4

25.3

22.1

0.60

0.59

0.45

0.40

0.39

0.39

0.39

0.38

0.37

0.35

0.20

0.17

3.087%

3.655%

1.204%

2.165%

0.715%

3.324%

1.984%

4.361%

2.264%

2.357%

1.476%

1.481%

1

2

3

4

5

6

7

8

9

10

26

31

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- 25 -

July 2012


• Distribution by markets of business volume of the IBEX 35® companies (2009 – 2011)

Diversified market

Source: Interim Reports from listed companies obtained from CNMV

2009 2011

48%

19%

10%

23%

Rest OCDE EU Spain

52%

40%

18%

15%

27%

Rest OCDE EU Spain

60%

- 26 -

July 2012


Key ratios benchmarking

• Efficiency • ROE

- BME s data as of 30/06/2012

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

of goodwill impairment charges

34,1%

17,5%

BME Average Peer

Group

32,1%

50,9%

BME Average Peer

Group

- 27 -

July 2012


Solid operating leverage

Costs Revenues Revenues not linked to volumes Ratio

78%

90%

106% 109% 105% 103% 112% 116%

2005 2006 2007 2008 2009 2010 2011 1H12

- 28 -

July 2012


Projects •Shares, ETFs, Warrants and other securities, traded on one single system

•The new system multiplies transactional capacity while providing growth potential

•Reduction of latency over ten times SIBE

•New services of “Front Office Significant Events” and messaging back up service MARKET DATA

•Entities connected to hubs in London multiplied by two. 33% increase in lines connected in proximity. Released in 2013 Co-location services

PROXIMITY/CO-LOCATION

• Is reaffirmed as a funding mechanism for companies

•With the listing of Suávitas, growth segment companies amounted to 21 MAB

• Increasing the number of participants in over 50%.

•Four times the volume recorded in the second quarter of 2012 versus the same quarter last year 2011. Increases a 786% open interest

MEFFPOWER

• In a first phase in 2013 will cover the repurchase (or repo) between entities and monetary policy operations of these with the Bank of Spain

COLLATERAL MANAGEMENT

•Good reception with the latest developments and last corporate debt issues

•The turnover and number of trades increased 5 and 10 times with respect to 1H11 SEND

•Funds Platform aims to provide greater efficiency to the process of subscription and redemption Funds Platform

• Introduced negotiation since last May 29th BONO 10

- 29 -

July 2012


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