bvmf presentation - march 2014

8/12/2019 BVMF PRESENTATION - MARCH 2014

1/54

1

BM&FBOVESPA

Investor Relations Department

March 2014


2/54

2

Forward Looking Statements

This presentation may contain certain statements that express the managements expectations, beliefs and

assumptions about future events or results. Such statements are not historical fact, being based on currently

available competitive, financial and economic data, and on current projections about the industriesBM&FBOVESPA works in.The verbs anticipate, believe, estimate, expect, forecast, plan, predict, project, target and other

similar verbs are intended to identify these forward-looking statements, which involve risks and uncertainties thatcould cause actual results to differ materially from those projected in this presentation and do not guarantee anyfuture BM&FBOVESPA performance.

The factors that might affect performance include, but are not limited to: (i) market acceptance of BM&FBOVESPAservices; (ii) volatility related to (a) the Brazilian economy and securities markets and (b) the highly-competitiveindustries BM&FBOVESPA operates in; (iii) changes in (a) domestic and foreign legislation and taxation and (b)government policies related to the financial and securities markets; (iv) increasing competition from new entrantsto the Brazilian markets; (v) ability to keep up with rapid changes in technological environment, including theimplementation of enhanced functionality demanded by BM&FBOVESPA customers; (vi) ability to maintain anongoing process for introducing competitive new products and services, while maintaining the competitiveness ofexisting ones; (vii) ability to attract new customers in domestic and foreign jurisdictions; (viii) ability to expand the

offer of BM&FBOVESPA products in foreign jurisdictions.All forward-looking statements in this presentation are based on information and data available as of the datethey were made, and BM&FBOVESPA undertakes no obligation to update them in light of new information orfuture development.This presentation does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shallthere be any sale of securities where such offer or sale would be unlawful prior to registration or qualificationunder the securities law. No offering shall be made except by means of a prospectus meeting the requirements ofthe Brazilian Securities Commission CVM Instruction 400 of 2003, as amended.


3/54

3

HISTORY, BUSINESS MODEL AND CORPORATE GOVERNANCE

BRAZILIAN MARKET OPPORTUNITIES

MAIN GROWTH INITIATIVES

OPERATIONAL PERFORMANCE

FINANCIAL HIGHLIGHTS

APPENDIX (includes results for 4Q13)


4/54

4

HISTORY, BUSINESS MODEL AND CORPORATE

GOVERNANCESafety, resilience and transparency


5/54

5

1890:Foundation of Bolsa

Livre (BOVESPA's

predecessor)

1986:Start of

BM&F

activities

Aug 2007:BOVESPA Hld

demutualization

Sep 2007: BM&Fdemutualization

Oct 2007:BOVESPA Hld

IPO (BOVH3)

Nov 2007:BM&F IPO

(BMEF3)

May 2008:integration between BM&F and

BOVESPA Hld and creation of

BM&FBOVESPA (BVMF3)

1967:BOVESPAs

Mutualization

MARKET CAPITALIZATION (US$ billion) AND OPERATING MARGIN (%)

12M to Jun. 28, 2012; 12M to Mar 31, 2012 (Mar 31, 2013 for JPX); 9M to Sep. 30, 2012. Source: Bloomberg (Fev 28 ,2014).

History of BM&FBOVESPAImportant global exchange

24.7 24.018.0 15.7

9.2 8.2 6.5 6.5 6.5 5.8 4.23.5 2.5

58% 61%71%

57% 54%63%

41%

28%

72%

56% 56%67%

35%

CME ICE-NYSE HKEx DeutscheBoerse

LSE BVMF Nasdaq JPX ASX SGX Moscow BME TMX

Oper. Margin (2012)Diversif ied and integrated Integrated (Derivatives) Diversified but not integrated


6/54

6

PRE-TRADING TRADING POST-TRADE

Access TradeAllocation

Transfer

Clearing/risk

analysis

Position/

CollateralDepository

Auxiliary

Services

VALUE CHAIN

Vertically integrated

Trading Platform: equities, derivatives, government and

corporate bonds, funds, spot FX, among others

Post-Trade Platform:

Central Counterparty (CCP) : An entity that interposes itself

between operations or contracts, becoming the guarantor of all

business

Settlement System (SSS): system that allows the transfer of

securities or assets from investors, in which the transfer may be

free or against payment

Central Depository (CSD): performs centralized asset custody and

treatment of corporate actions (dividends, stock splits, etc.)

Services for issuers and brokers Listing (stocks, funds, corporate bonds,

securitization, among other)

Trading access (brokers)

Securities Lending

Custody for clubs and foreign investors

(2.689 account)

Market Data (vendors)

Indices Licensing

Software Licensing

OTC (derivatives and fixed income)

Commodities certification

Vertical model as a differentialValue gained across most of the chain

SettlementRisk Analysis

(DMA)Risk Analysis


7/547

DTCC

BRAZIL(Internalization of orders is forbidden)

US(Internalization of orders is allowed)

Post tradeCCP

SSS

CSD

Trading

Brokers

A and B

Investors Investors

Brokers A and B

Investors Investors

Broker

A

Broker

B

Model 100% vertical: clearing, settlementand central depository at the final beneficial

owner level

Brokers settle positions and control theirclients portfolios through BM&FBOVESPAs

infrastructure (impact on post-trade fees)

Clearing, settlement and custody occur at thebrokerage houses

Each prime broker has its own structure tocontrol its customers portfolios and settle

positions (impact on the prime brokerscosts)

Trading Venues

Vertical model as a differentialBM&FBOVESPA present at all post-trade stages


8/548

Brokerage

houses &

investors

Trading

Post-Trade

Regulations prohibitinternalization of orders, dark poolsand ATS/MTFs and simultaneous exchange/OTC equities

trading

Settlement and clearing of equities trading must be donethrough a CCP

Settlement and clearing at the final beneficial owner level

make the Brazilian market safer and more resilient

Under the prevailing regulations, potential competitorsmust provide an integrated solution with the same statusregarding rules and transparency

In Brazil the final investor pays the exchange: compared to

other markets we have a competitive all-in-cost, as

BM&FBOVESPA provides more services than other

exchanges

Naked access is not allowed

Naked short selling is not possible

Brazilian market regulatory frameworkResilience and safety as priorities


9/549

EXECUTIVE OFFICERSBOARD OF DIRECTORS

COMMITTEES

Edemir PintoCEO

Luis FurtadoCIO

Ccero VieiraCOO

Daniel SonderCFO

Eduardo GuardiaChief Product / IRO

Audit Committee

Risk Committee

Nominations and Corporate Governance Committee

Compensation Committee

Corporate GovernanceMultidisciplinary knowledge in conducting business

Charles CareyIndependent Director, Director of CME Group

Jos Roberto Mendona de BarrosIndependent Director, economist and professor

Pedro Parente (Chairman)Independent Director, CEO of Bunge Brasil

Marcelo Trindade (Vice Chairman)Independent Director, lawyer

Claudio HaddadIndependent Director, engineer and professor

Andr EstevesNon Executive Director, CEO of BTG Pactual

Alfredo Antnio Lima de MenezesNon Executive Director, Executive Officer of Bradesco

Luiz Fernando FigueiredoIndependent Director, Co-Founder of Mau Investments

Luiz Nelson Guedes De CarvalhoIndependent Director, professor

Candido BracherNon Executive Director, CEO of Ita BBA

Jos Berenguer Neto

Non Executive Director, CEO of JP Morgan Brazil

Advisory Committee For The Securities Intermediation Industry


10/5410

GM of Apr. 15, 2013

Number of individual shareholders 55,108

Number of institutional shareholders 3,580

Total number of shareholders 58,688

Free float (ON) 1,853,567,260 (97.6%)

Ownership structureWidely-held shareholder base

Updated on February 13, 2014

10.4%

6.8%

5.3%

2.3%

75.1%

Funds managed by OppenheimerFunds, Inc.

Funds managed by Vontobel Asset Management Inc.

CMEG Brasil I Participaes Ltda.

Treasury stock

Other


11/5411

BM&FBOVESPAs Sustainability PolicyApproved by the Board of Director


12/5412

BRAZILIAN MARKET OPPORTUNITIES

Main growth drivers


13/54

Opportunities in the Brazilian marketBM&FBOVESPA is ready to capture future growth

Growth opportunities in the Brazilian equities

and derivatives markets

EQUITIES MARKET

Portfolio diversification: diversification of institutional investorsportfolios with a higher participation of equities

Retail investors: small number of retail investors and growth of themiddle class

Listed companies: low number of listed companies, while importantsectors are not adequately represented on the exchange

DERIVATIVES MARKET

Growth of credit and fixed-rate government debt: higher demand forhedging from financial institutions and institutional investors

Growth of foreign trade: higher demand for hedging through FXcontracts

Equities market development:growth in demand for index-basedcontracts

OTC derivatives: capital requirements (Basel) should benefit OTCtransactions through a CCP


14/5414

168216 256

295352

436 419492

538 574642

630

28%29% 30%

31%33% 37% 28%

33%33%

30%29% 29%

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

Fixed Income and Others

Equity

Capital MarketGreat opportunities in the equities and derivatives segments

Funds AUM evolution (in BRL billion). Global average of 40% for

equities

LISTED COMPANIES

Source : BM&FBOVESPA, ANBIMA , WFE (Dec-12) and ABRAPP. *Updated to Jun/13

INVESTMENT FUNDSNUMBER OF CUSTODY ACCOUNTS (thousand)

PENSION FUNDS

Number of retail investors represents only 0.3% of the

population (lower than global average)

Lower number of listed companies in comparison withother countries

Participation of equities in the portfolio of pension funds

6,856

4,916

4,041 3,9723,481 3,200

2,7672,056 1,784

364

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

657861 899

1,0701,301

1,5131,375

1,703 1,7871,925

2,189 2,344

11%

10% 11%11%

15%22% 14%

18% 18%15%

14% 13%

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2Q13

Equities

Fixed Income

*

May have a partial overlap between investment funds and pension funds portfolios.

Jan'05

128.6

Feb'14

610.5

Jan-0

5

Jul-05

Jan-0

6

Jul-06

Jan-0

7

Jul-07

Jan-0

8

Jul-08

Jan-0

9

Jul-09

Jan-1

0

Jul-10

Jan-1

1

Jul-11

Jan-1

2

Jul-12

Jan-1

3

Jul-13

Jan-1

4


15/5415

MAIN GROWTH INITIATIVES

Investments, new products and focus on thecustomer


16/5416

Update of strategic projects

*IPN/CORE implementation requires the authorization of the regulators.

PUMA Trading System - Multi-Asset Trading Platform A high-performance, high-speed and high-capacity electronic trading platform

RTT (Round Trip Time) of less than one millisecond

Derivatives and FX module: implemented in Oct/11

Equities module: implemented in Apr/13

Clearinghouses integration The integration of BM&FBOVESPAs clearinghouses will enhance the Companys competitive position

Development of the new risk architecture (CloseOut Risk Evaluation - CORE)* will increase allocation

efficiency for clients

Tests for derivatives started in Jul/13, with conclusion scheduled for Jun/14

iBalcoOTC Registration Platform Registration of OTC derivatives and fixed income securities (CDB, LCA, LCI, COE)

Deployment in Jul/13 (for FX non-deliverable forward no central counterparty)

Pricing Policy Changes for Cash Equities First phase (Apr/13): reduction from 0.7 bps to 0.5 bps in trading fees and a realignment between the

trading fees and post-trade fees of institutional investors and day traders

Second phase (Dec/13): increased discounts per tier of volume for day traders and a progressive reductionof trading fees per tier of global volume

Initiatives for Small and Medium Enterprises (SMEs) Establishment of the Technical Committee for Smaller Offerings composed of private sector and

government agencies

Developing proposals to facilitate capital raising through issuance of shares (incentives to SMEs, investors

and intermediaries)

Project was presented to the Ministry of Finance in Jul/13


17/5417

BM&FBOVESPA IT DevelopmentsBuilding a world-class IT platform

Increasing competitive differentiation for derivative andcash equity markets

LATENCY

BM&F Segment (derivatives) BOVESPA Segment (equities)

70

2520

10-15~1 ~1


18/5418

Clearinghouses IntegrationFurther differentiation in BM&FBOVESPA post-trade

Equities and corporate

debt (BRL 80.3 bn*)

Equities, ETFs andcorporate fixed incomecash market

Equity and indicesderivatives (options andforward)

Securities lending

Derivatives

(BRL 127.4 bn*)

Financial andcommodities derivatives(futures, options andforwards)

OTC derivatives

FX(BRL 5.9 bn*)

FX spot market

(US$ vs. BRL )

Securities(BRL 0.8 bn*)

Cash market andforward market forgovernment bonds

INTEGRATED CLEARINGHOUSE**=

Capital efficiency

* Aggregate of pledged collateral at our clearinghouses totaled BRL 214.4 billion in Dec 31, 2013. **IPN/CORE implementation requires the authorization of the regulators.


19/5419

Product and Market DevelopmentListed products, OTC and fixed income

LISTED PRODUCTS

iBALCO PROJECT

ETFs(exchange traded funds):Equities, fixed

income, international and real estate funds

Market maker:cash equities, options,commodities, futures

Ibovespa:methodology review

SMEs (small and medium enterprises):BOVESPA Mais

Incentive programs: retail investors

Selic derivatives: Selic futures (OC1), FX

spread (DCO), FX swap (SCS)

Options on single stocks: New fee policy forHFTs/day traders

Futures Contracts: Ethanol

BDRs: To Exchange from OTC

Securities Lending: BTC platform

Derivatives Registration:

NDFs: deployed in Jul/13

Flexible options on single stocks

COE: Structured Notes

Swaps

Fixed Income Registration:

LCAs (Agribusiness Credit Bill): improvements

LCIs (Real Estate Credit Bill) and CDBs (timedeposits): adaptation of the platform (pendingregulatory approval)

Corporate bonds and LFs (financial bills): changes tolisting rules and procedures

Trade of Fixed Income:

Trading platform for government and corporatebonds and changes to the fee policy

h h


20/5420

28.548.7

115.999.3

75.4

2010 2011 2012 2013 2014*

48.868.2

ADTV beforeMarket Maker

ADTV afterMarket Maker*

2.9 3.96.1

9.0 9.8

2009 2010 2011 2012 2013

Securities LendingReal Estate Funds (FIIs)Options with Market Maker

(Open Interest - average for the period - in BRL billion)

Initiatives to develop and prompt higher volume in certain products

Performance shows that the initiatives are being well received by the market

ETFs Brazilian Treasury Direct - Tesouro Direto Agribusiness Credit Bills

(ADTV in BRL million)

+39.9%

(ADTV in BRL million)

(ADTV in BRL million) (Custody in BRL billion)

High growth productsGrowing sophistication of market participants

BM&FBOVESPA has a 74% marketshare of the registered AUM (Sep-13).

CAGR(09-14):

+95.2%

CAGR (10-14):

+12.9%

CAGR (10-14):

+27.5%

CAGR (09-13):

+35.5%

*Updated to Fev. 28 2013. **Updated to Dec. 31, 2013

(AUM in BRL billion)

3.6 20.0

60.3

2011 2012 2013

0.9 1.53.7

14.6

31.7 26.3

2009 2010 2011 2012 2013 2014


21/5421

OPERATIONAL PERFORMANCE

BOVESPA S


22/5422

BOVESPA SegmentOperational highlights

*Updated to Feb 28, 2013. **Ratio of cash market trading volume to the market cap of the exchange.

AVERAGE DAILY TRADING VOLUMEADTV (BRL billion)*

AVERAGE ANNUAL MARKET CAP(BRL trillion) TURNOVER VELOCITY** (12 months average*)

*

0.720.94

1.31

1.98 2.03

1.83

2.33 2.37 2.41 2.41 2.25

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014*

30.8%

29.4%

36.8%37.6%38.7%42.3%

56.4%

63.2%

66.6%

63.8%

64.2%

70.0%73.2%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

1,2 1,6 2,44,9 5,5 5,3

6,5 6,5 7,3 7,4 6,47,8 7,4 8,2 7,7

8,96,0

8,57,2 6,6 7,0 6,2 6,2 6,6

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 fev/13 m ar/13 abr/13 mai/13 j un/13 jul/13 ago/13 s et/13 out/13 n ov/13 d ez/13 jan/14 fev/14

T di i ADR f B ili i


23/54

23

Trading in ADRs of Brazilian companiesLiquidity migration process interrupted

Feb14

Source: Bloomberg (in USD

traded value of 35 companies

with ADRs programs )

Sarbanes-Oxley Act

(Jul. 2002)

*Updated to Feb. 28, 2013.

Novo MercadoLaunch

(Dec. 2000)

PUBLIC OFFERINGS IN NUMBER OF COMPANIES

End of IOF Tax (2%) forforeign investors

(Dec. 2011)

End of CPMF(Financial

Transaction Tax)

37.7%

27.4%

8.8%

26.1%

34.9%

65.1%

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 10 152

Follow ons 14 5 8 8 10 16 12 8 18 11 11 9 7 137

Total 14 6 8 15 19 42 76 12 24 22 22 12 17 289

Dual Listings - - - 2 1 1 - - 1 - - - - 5

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Jan-13

Feb-13

Mar-13

Apr-13

May-13

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Feb-14

Other USA Venues - Brazilian ADRs NYSE - Brazilian ADRs

BM&FBOVESPA - companies with ADRs BM&FBOVESPA (except companies with ADRs)

BM&F S t


24/54

24

BM&F SegmentOperational highlights

AVERAGE DAILY TRADED VOLUMEADV (thousands of contracts)

REVENUE PER CONTRACT - RPC (BRL)

*Updated to Feb 28, 2014.

2006 2007 2008 2009 2010 2011 2012 2013 2014* F-13 M-13 A-13 M-13 J-13 J-13 A-13 S-13 O-13 N-13 D-13 J-14 F-14

Interest rates in BRL 0.906 0.950 1.141 0.979 0.889 0.918 1.004 1.046 1.015 1.013 1.037 0.945 0.843 1.099 1.067 1.112 1.222 1.203 1.115 1.266 1.049 0.980

FX rates 2.244 1.859 2.065 2.161 1.928 1.894 2.205 2.535 2.631 2.305 2.273 2.292 2.347 2.590 2.691 2.731 2.720 2.624 2.611 2.832 2.629 2.633

Stock Indices 1.419 1.501 2.145 1.620 1.564 1.614 1.524 1.761 1.854 1.974 1.413 1.846 1.408 1.867 1.590 1.938 1.656 1.816 1.664 2.122 1.695 1.958

Interest rates in USD 1.094 0.965 1.283 1.357 1.142 0.941 1.015 1.231 1.370 1.140 1.121 1.093 0.928 1.280 1.370 1.309 1.412 1.246 1.359 1.340 1.325 1.414

Commodities 4.749 3.195 3.587 2.307 2.168 2.029 2.239 2.534 2.285 2.415 2.382 2.349 2.550 2.595 2.632 2.385 2.766 2.613 2.430 2.760 2.401 2.199

Mini contracts 0.034 0.054 0.162 0.176 0.128 0.129 0.116 0.119 0.123 0.122 0.119 0.118 0.116 0.119 0.114 0.117 0.126 0.120 0.120 0.128 0.122 0.123

OTC 1.571 2.111 2.355 1.655 1.610 1.635 1.769 1.409 1.073 2.868 1.642 1.460 1.428 1.418 1.839 1.160 1.477 1.118 1.266 0.978 1.077 1.069

Total RPC 1.247 1.224 1.527 1.365 1.134 1.106 1.191 1.282 1.277 1.191 1.190 1.114 1.020 1.361 1.320 1.397 1.511 1.418 1.367 1.575 1.294 1.261

422 501 711988 789 843

1,684 1,797 1,926 1,857 1,9102,630

2,2352,694 2,944

1,977

1,5191,713

1,239 1,209 1,457 1,179

1,851 1,969

110 168266

473535 447

541 496494 494 516

494

491

468507

635

435541

502 420481

497

500 531

86 74

68

11288 80

89 123143 114 98

126

100

145105

183

99146

90 10275

106

73123

187 109

124

167162 150

191285

336 383 465

341

341

352424

495

389

434

351 385405

392

428501

805 8521,167

1,740 1,573 1,521

2,5052,701

2,899 2,848 2,988

3,5913,166

3,6583,980

3,290

2,4432,835

2,182 2,1162,418

2,174

2,8523,124

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014* Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14

BRL Int. Rate (Thousands) FX (Thousands) Index (Thousands) Others (Thousands)

I t ti i ti i l


25/54

25

Investor participation in volumesEquities and derivatives segments

BM&F SEGMENT (DERIVATIVES)

BOVESPA SEGMENT (EQUITIES)

56% 51% 49% 48% 45% 42% 38% 34% 32% 32% 29% 31% 32%37% 32% 34% 30% 32% 33% 34% 30% 32% 32%

12% 15% 17% 19% 20% 22% 23% 25% 25% 30% 25% 26% 26%26%

25% 23% 25% 26% 25% 25% 28% 29%31%

24% 25% 23% 23% 24% 30% 33% 34% 36% 32% 41% 38% 37% 32% 36% 35% 37% 33% 34% 34% 35% 33% 30%

7% 7% 9% 8% 8% 4% 4% 5% 5% 5% 3% 4% 4% 4% 5% 6% 6% 6% 7% 5% 5% 5% 5%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Feb-13 Mar-13

Apr-13 May-13

Jun-13 Jul-13 Aug-13Sep-13 Oct-13Nov-13Dec-13Jan-14 Feb-14

Individuals Institutional Investors Foreign Investors Financial Institutions Companies Central Bank

25% 25% 23% 27% 31% 26% 21% 18% 15% 13% 16% 18% 15% 16% 13% 16% 14% 15% 15% 15% 13% 13% 14%

27% 27% 30% 27%26% 33%

33% 32% 33% 31% 33%32% 32% 32% 33% 32% 34% 32% 33% 32% 32% 33% 29%

33% 36% 35% 35% 34%30% 35% 40% 44% 49% 41% 43% 42% 44% 44% 45% 42% 46% 44% 47% 46% 47% 50%

12% 10% 10% 8% 7% 8% 9% 8% 7% 5% 9% 7% 9% 7% 8%6% 9% 6% 6% 5% 7% 5% 5%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13Sep-13 Oct-13 Nov-13Dec-13 Jan-14 Feb-14

Individuals Institutional Investors Foreign I nvestors Financial I nstitutions Companies Others


26/54

26

FINANCIAL HIGHLIGHTS

Cost discipline and capital return to shareholders

Income Statement


27/54

27

Income StatementHistory

SUMMARY OF INCOME STATEMENT (CONSOLIDATED)

(in BRL thousand) 2009 2010 2011 2012 2013

Net revenue 1,510,569 1,898,742 1,904,684 2,064,750 2,370,229

Expenses (569,832) (633,504) (816,664) (763,080) (797,160)

Adjusted expenses (446,677) (543,881) (584,521) (563,487) (575,764)

Operating income 940,737 1,265,238 1,088,020 1,301,670 1,334,635

Operating margin 62.3% 66.6% 57.1% 63.0% 62.6%

Equity method result - 38,238 219,461 149,270 171,365

Financial result 245,837 289,039 280,729 208,851 181,535

Income before taxation of profit 1,186,574 1,592,515 1,588,210 1,659,791 1,687,535

Income tax and social contribution (304,505) (448,029) (539,681) (585,535) (606,588)

Net income* 881,050 1,144,561 1,047,999 1,074,290 1,080,947

Adjusted net income 1,223,761 1,586,374 1,545,627 1,612,136 1,609,769

Adjusted EPS (BRL ) 0.6104 0.7929 0.7932 0.8351 0.8389

*Attributable to shareholders of BM&FBOVESPA.

Revenue and Expense breakdowns


28/54

28

6.1%

30.6%

4.3%36.9%

22.1%

Cash Equities (Trade)

Cash Equities (Post-Trade)

Equities Derivatives

(Trade and post-trade)

Financial and Commodities Derivatives

(Trade and post-trade)

Other

REVENUE BREAKDOWN (4T13)

Gross Revenue:BRL 524.0MM

Revenue and Expense breakdownsDiversified revenue sources as a differential, costs under control

EXPENSE BREAKDOWN (2013)

Expense:BRL 797.2MM

44.7%

15.0%

14.0%

5.8%

20.5%

Personnel

Deprec. and Amortization

Data processing

Third Party Services

Others

Adjusted Opex* Budget


29/54

29

Adjusted expenses increase below inflation Focus on expenses control offset most of the inflationary adjustments over the past years

Considers the mid-point of 2014 budget; IPCA in 2014 based on market expectations released by the Central Bank in Dec. 13, 2013;

2013e vs 2012: 2.18%

IPCA 2013e: 5.91%

2014e vs. 2013e: 5.08%

IPCA 2014e: 5.95%

CAGR 2010-14e: 2.7%

IPCA 2010-14e: 6.0%

Adjusted Opex* BudgetFocus on cost control

*Adjusted to Company s depreciation, stock options plan, tax on dividends from the CME Group and provisions.

Opex- millions R$

Capex Budget


30/54

30

Review of the 2014 Capex budget Impacted by some projects that were revisited and FX rate

Review of 2014 budget: to R$230260 million from R$170200million

FX rate exposure of ~25%

Update of the clearinghousesintegration project

Deepening initiatives (securitieslending, market makers, pre-trade riskcontrols, among others)

Capex is expected to decline from2015

2015e: R$190220 million

Capex BudgetInvestments phase

Capex- millions R$

Growth Path


31/54

31

1,511

941

1,224

1,899

1,265

1,5861,905

1,088

1,546

2,065

1,302

1,612

2,132

1,335

1,610

Net Revenues Operating Income Adjusted Net Income

2009 2010 2011 2012 2013

(in BRL million)

(in BRL)

GROWTH IN ADJUSTED EARNINGS PER SHARE

GROWTH IN REVENUES AND RESULTS

Growth PathGrowth in business and results

0.61

0.79 0.79 0.84 0.84

2009 2010 2011 2012 2013

Financial Soundness


32/54

32

Sound financial position - an important factor for the Company, given itsrole as CCP, guaranteeing the settlement of trades executed by global

and Brazilian investors

Standard & Poor sBBB+ (counterparty credit rating)

A-2 (issuer)

Moody sA3 (global scale issuer)

A3 (Brazilian local currency issuer)

Baa1 (global notes)

R$ million Dec/10 Dec/11 Dec/12 Dec/13

Available funds 1,677 1,582 1,964 1,921

Indebtedness 1,043 1,172 1,279 1,469

R$ million

CASH POSITIONSOUND FINANCIAL POSITION

*Includes collateral pledged by participants in the form of cash, receivables and rights in securities under custody, as well as payouts still undisbursed.

**Includes third party collateral and restricted funds at BM&FBOVESPA Settlement Bank (Banco BM&FBOVESPA).

Financial SoundnessHigh liquidity and low indebtedness

993

1,551

1,191

2,134

496

380

346

359

269

270

350

457

1,677

1,582

1,964

1,921

3,435

3,782

3,851

4,871

4Q10

4Q11

4Q12

4Q13

Market participants cash collateral and others*

Restricted funds

Subsidiaries**

Available funds


33/54

33

APPENDIX

BOVESPA Segment


34/54

34

PUBLIC OFFERINGS (BRL billion)

PIPELINE: OFFERINGS ANNOUNCED SO FAR TO THE MARKET

Updated to Jan. 31, 2013.

BOVESPA SegmentRaising Capital

There are 2 offerings in the pipeline

IPOs (1): Aceco Ti S.A

Follow-ons (2): Cia. De Saneamento Do ParanSanepar; Oi S.A;

Additionally, there are 5 Real Estate Funds filed with CVM: estimated value of R$ 1.2 billion

* Excludes the portion acquired by the Brazilian government in the Petrobras offering, via the transfer of rights in barrels (BRL 74.8 billion).

4.3 8.5 15.1 14.526.8 22.2

63.2

10.8 9.3 6.14.55.4

15.4

55.6

7.5 23.8

11.2

7.2 3.917.38.8

13.9

30.4

70.1

34.346.0

74.4

18.0 13.2

23.4

2004 2005 2006 2007 2008 2009 2010* 2011 2012 2013

Follow-On

IPO

BOVESPA Segment


35/54

35

BOVESPA SegmentForeign investment flow

MONTHLY NET FLOW OF FOREGIN INVESTMENTS (in BRL billon)

Includes public offering (primary market) and regular trades (secondary market).

*Updated to Feb 28, 2013.

0.4

1.7

(1.3)

1.8

3.4

1.9 2.2

(0.4)(0.2)

0.8 1.0

(2.4)

7.2

(1.1)(1.3)

2.9

(2.3)

(0.3)

0.61.1

(4.2)

(1.2)

0.7

4.9 4.9

2.6

1.6

7.6

(1.2)

(3.8)

0.1 0.3

4.2

1.6

0.51.3

(0.9)

1.3

BOVESPA Segment


36/54

36

177%

126% 121%

109%100%

136%

67%75%

87%72%

129%

100%

39%

174%

137%

158%

119%107%

129%

75% 76%

96%

72%

138%

80%

44%

129%

110% 109% 104%

89% 87%

60% 57% 55% 50% 49% 46%35%

151%

111% 117% 119%105%

85%

62%70% 69%

55%

124%

44% 45%

Cingapura Canad Chile EUA Coria Austrlia Japo Frana ndia Brasil Inglaterra China Mxico

2009 2010 2011 2012

11.2%

14.3%

2.2%

5.1%

20.4%

5.4%

0.4%5.5%

8.8%

26.8%

Oil, Gas and Biofuels Basic Materials Capital Goods and Servic es Construction and TransportationConsumer Non Cyclical Consumer Cyclical Information Technology Telecommunic ationsPublic Utilities Financial

15.7%

21.6%

2.5%

3.6%

8.6%

2.6%

0.3%11.1%

11.5%

22.4%

BOVESPA SegmentPotencial to increase the number of listed companies

MARKET CAPITALIZATION TO GDP (%)*

MARKET CAPITALIZATION BY ECONOMIC SECTOR * Source: World Bank

Dec05 Dec12

Hong Kong : 438% 481% 365% 421%


37/54

BM&FBOVESPA Market Supervision (BSM)


38/54

38

AuditMarket

supervision

Analysisand

strategyLegal dept.

Selfregulation

Officer

Supervision Board(12 members*)

StrategicCommittee

Atribuies da BSM estabelecidas na

Instruo CVM 461/2007:

Monitor and supervise transactions in

the organized markets

Determine deficient compliance with

the rules and norms

Monitor the activities of the Stock

Exchange

Initiate and prosecute disciplinary

administrative legal proceedings

Apply penalities

Main activities of BSM Organizational chart

Monitor 100% of the participants

transactions

Assess 100% of intermediaries

Enforcement Education

BSM duties established in CVM Instruction461/2007

BSM is is a not-for-profit association organized as a self-regulatory and market surveillanceorganization, responsible for regulatory and oversight activities relative to the markets we operate.

* 9 independent

BM&FBOVESPA Market Supervision (BSM)Self-Regulation Entity


39/54

39

4Q13 RESULTS

4Q13 and FY13 Highlights


40/54

40

FY13 FINANCIAL HIGHLIGHTS

Total Revenue: R$2,370.2 MM (+3.5% over 2012)

BM&F Segment: R$916.5 MM (+5.9% over 2012)

Other Revenue: R$429.7 MM (+10.4% over 2012)

Adj. Opex:2.2% growth, significantly bellow inflation

COMMITMENT IN RETURNING CAPITAL TO SHAREHOLDER

FY13 Payout: R$865.2 MM (ratio of 80%)

Share buyback: R$530.6 MM in 2013

Jan-14: R$370.4 MM

2014:new program of 100.0 million shares approved

MAIN STRATEGIC ACHIEVEMENTS IN 2013

Clearinghouses integration (IPN): certification in 4Q13

PUMA Trading System: state-of-the-art platform

Ibovespa:new methodology announced in Sep-13

Changes in fee structure and introduction of incentive program

SMEs:proposals for developing the access market

4Q13 vs. 4Q12

Net Revenue: R$475.6 MM(-4.7% over 4Q12)

Adjusted Expenses1: R$168.4 MM(-3.3% over 4Q12)

Operational Income: R$222.1 MM(-8.6% over 4Q12)

Adjusted Net Income2: R$341.9 MM(-9.9% over 4Q12)

Adjusted EPS: R$0.180

(-8.6% over 4Q12)

EBITDA3: R$292.9 MM(-2.1% over 4Q12)

EBITDA margin: 61.6%

1

Expenses adjusted to Companys depreciation, stock options plan, tax on dividends from the CME Group and provisions.2

Net income adjusted by (i) the effect of deferred liability recognition in connectionwith temporary differences from amortization of goodwill for tax purposes; (ii) the impact of the stock options plan; (iii) investment in affiliates (CME Group) accounted for under the equity method, net of

taxes; (iv) taxes paid overseas to be compensated; and (v) provision related to health plan net of taxes in 4Q12. According to CVM Rule 527/12 that does not exclude equity method accounting.

R$1,766.2 MM

4Q13 and FY13 HighlightsFocus on returning capital to shareholders

BOVESPA Segment Performance


41/54

41

4Q13 vs. 4Q12

ADTV: R$6.62 bn (-5.8%)

Turnover velocity:64.4% vs.68.0% in 4Q12

Average market capitalization:+1.1% over 4Q12

Margin: 5.322 bps vs. 5.573 bps in

4Q12 (-4.5%)

Higher discounts by volumes for

day traders

Higher participation of cash

market in the overall ADTV

FY13 vs. FY12

Flat market capitalization

Growth in turnover velocity

Lower trading margins

AVERAGE DAILY TRADING VALUE (ADTV) AND MARGIN

BOVESPA Segment PerformanceChallenging environment affected equity volumes

AVERAGE MARKET CAP. AND TURNOVER VELOCITY

BM&F Segment Performance


42/54

42

4Q13 vs. 4Q12:

ADV: 2.23 million contracts (-21.4%)

Interest rates in BRL: -34.5%FX: +4.7%

Index-based:-15.5%

RPC: +20.3% (mix effect and FX rate appreciation)

Interest rates in BRL: +20.0% (lengthening of contracts)

FX and Interest rates in USD:+10.3% and +18.6%,respectively (FX rate appreciation USD/R$)

42

AVERAGE DAILY VOLUME (ADV) AND AVERAGE REVENUE PER CONTRACT (RPC)

BM&F Segment PerformanceHigher RPC partially offset volumes decrease

(ADV in millions of contracts)

FY13 vs. FY12

ADV: 2.85 million contracts (-1.8%)

Interest rates in BRL: -3.6%FX: flat

Index-based:-20.6%

RPC: +7.6% (mix effect and FX rate appreciation)

Interest rates in BRL: +4.2% (lengthening of contracts)

FX and Interest rates in USD:+15.0% and +21.3%,respectively (FX rate appreciation USD/R$)

Revenue Breakdown


43/54

43

Revenue BreakdownDiversified revenue sources as a differential

CASH MARKET TRADING REVENUEACCOUNTED FOR 6.1% OF TOTAL

DERIVATIVES REVENUE (BM&F + BOVESPA)ACCOUNTED FOR 41.2% OF THE TOTAL

(in R$ millions)

4Q13 REVENUE BREAKDOWN

FY13 vs. FY12 REVENUE BREAKDOWN

Bovespa Segment: R$1,024.0 MM; -1.0%BM&F Segment: R$916.5 MM; +5.9%

Others Revenue: R$429.7 MM; +10.4%

Depository: R$116.3 MM; +13.2%

Securities Lending: R$102.2MM; +32.6%

Adjusted Expenses


44/54

44

djusted pe sesContinuous focus on cost control and operational efficiency

ADJUSTED EXPENSES: 4Q13 vs. 4Q12: -3.3%

*Includes expenses with maintenance in general, communication, marketing, taxes adjusted by the dividends from CME Group, board/committee members compensation and others (excluding provisions).

Cost efficiency: reduction of marketing expenses and non-recurrence of R$15 MM transferred to BSM in 4Q12

Adj. Personnel: +12.9% (annual union bargain in Aug/13;lower personnel costs capitalized; and concentration ofseverance costs)

(in R$ millions)

FY13: within the budget range (R$560-580 MM)

Cost efficiency: reduction in third party services, marketingand communication expenses

Adj. Personnel: +11.5% (effects of annual union bargain inAug/13; lower capitalization of personnel costs)

Data processing: +8.7% (higher expenses for services andmaintenance of software and hardware)

FY14E (R$595-615 MM): growing in line with inflation

FY13 vs. FY12 ADJUSTED EXPENSES: GROWING BELOW THE 2.2% OFFICIAL INFLATION

(in R$ millions)(Y10-Y13 CAGR): +1.9%

174.2 168.4

10.1 1.9 0.3

(18.1)

4Q12 Adj. Exp. Adj. Per sonnel Data proc. Third Party Others* 4Q13 Adj. Exp.

Total Expenses


45/54

45

pImpacted by non-recurring expenses

NON-RECURRING ITEMS IMPACTED TOTAL EXPENSES IN AQUARTERLY BASIS COMPARISON

Personnel

16.3% reduction, since in 4Q12 there was a R$27.5MM provision related to the health care plan

4Q13 includes R$5.9 MM in severance costs,

reflecting the continuous efforts to control costs,and a R$4.2 MM reduction in personnel capitalized

Third party

BVRJ, subsidiary of BM&FBOVESPA, won legaldispute of over R$300 MMagainst one of itsformer broker member, generating a one-offsuccess fee payment of R$8.0 MM for a legaladvisor

Taxes

Extraordinary dividends from CME Groupincreased the tax connected to that to R$36.2MMin the 4Q13

R$ millions 4Q13 3Q13 4Q12

Total Expense 253.5 194.1 256.0Personnel 95.5 92.1 114.1Health care plan provision - - 27.5Severances 5.9 2.8 1.3

Third Party 20.2 9.2 20.0Success fee 8.0 - -

Taxes 37.8 6.8 19.7Taxes on dividends from CME 36.2 5.1 18.2

Others 100.0 86.0 102.2Provisions 10.8 0.6 4.4Transfer to BSM - - 15.0

Financial Highlights


46/54

46*Includes third party collaterals at BM&FBOVESPA Settlement Bank (Banco BM&FBOVESPA).

**Includes earnings and rights on securities in custody. 46

g gStrong balance sheet with liquidity

(In R$ millions)

FINANCIAL RESULTS

Financial result: R$51.7 MM, +20.0% over 4Q12

Financial income: +27.5% (higher interest rates)

Financial expenses:+41.9% (appreciation of USD/R$impacts the interest on notes issued overseas)

CAPEX

4Q13:R$86.7 MMFY13 within the budget:R$289.2 MM

Market participant cash collateral includes R$1.2billion pledged in the FX Clearinghouse that wassettled on Jan. 2, 2014.

Capex reflecting intensive investment phase

2014 Budget:R$230 MMR$260 MM

2015 Budget:R$190 MMR$220 MM

CASH AND FINANCIAL INVESTMENTS

VALUATION AND ASSETS

R$ MM

Net cash position (Dec. 31, 2013) 941.1

CME shares (Jan. 31, 2014) 3,100.6

BVMF market capitalization (Jan. 31, 2014) 18,928.8

(In R$ millions)

Returning Capital to Shareholders


47/54

47

More than R$7.4 billion returned toshareholders since 2008 Most of the cash generated over the period

Healthy balance between payout andshare buyback

High dividend yield

New share buyback program of up to100.0 MM shares

Capital Stock (# of shares)

Total: 1.98 bn shares

Excluding treasury stocks*: 1.86 bn shares

Board recommendation to cancel: 80 MM shares

47

g pCommitment to returning capital to shareholders

CAPITAL RETURN TO SHAREHOLDERS

(In R$ millions)

*Jan. 31, 2014

High growth products


48/54

48

g g pIncreasing revenue diversification

48

STRONG REVENUE GROWTH OF SELECTED PRODUCTS

Products well received by clients, with continuous developments to maintain stronggrowth trend

Securities lending (BTC)

Tesouro Direto

Market maker for options on single stocks

Exchange traded funds (ETF)

Agribusiness credit bills (LCA)

Real estate investment funds (FII)

Non sponsored Brazilian Depositary Receipts (BDRs N1 NP)

CAGR(2009-13):

+42.5%

(In R$ millions)

Strategic Plan Execution


49/54

49

gDeploying a long term strategic plan

IPN/CORE implementation requires the authorization of the regulators.

2010 2012 2013 20142011

- Kick-off- Derivatives and spot FX

(conclusion)- Equities (conclusion)

- Kick-off - Derivatives (conclusion)

- New NDFs platforms

- Fee schedule review

- Other products deployment

(highlighting CDB, LCI and

COE)

- Land acquisition

- Construction conclusion

and beginning of the

moving process

PUMA TradingSystem

IntegratedClearinghouse

OTC and Fixed

Income Markets

New DataCenter

Fee Policies

ProductsDevelopment

Other StrategicDevelopment

- Kick-off

- Market markers for

options

- Cross listing with CME

- LCAs registration

- Trading/post-trade

fees rebalancing

- ETFs and BDRs

- Discount by volumes

for HFTs

- Construction

beginning

- Changes in the equities

market fees

- Incentive programs

- Selic futures

- Cross listing with CME

- Ibovespa methodology

review

- SMEs access market

development

- SMEs access market

development

Bovespa Mais

- ETFs, BDRs and market

markers for options on

single stocks

- Fixed income and OTC

products

- Securities lending

- ETFs and market maker

Summary of Income Statement


50/54

50

y(Consolidated)

* Attributable to BM&FBOVESPA shareholders.

(in R$ millions, unless

otherwise indicated) 4Q13 4Q12

Change

4Q13/4Q12 3Q13

Change

4Q13/3Q13 2013 2012

Change

4Q13/3Q13

Total Expenses 253.5 256.0 -1.0% 194.1 30.6% 797.2 763.1 4.5%

Net Revenue 475.6 499.2 -4.7% 535.4 -11.2% 2,131.8 2,064.8 3.2%

Expenses (253.5) (256.0) -1.0% (194.1) 30.6% (797.2) (763.1) 4.5%

Operating Income 222.1 243.1 -8.6% 341.3 -34.9% 1,334.6 1,301.7 2.5%

Operating margin 46.7% 48.7% -200 bps 63.7% -1,704 bps 62.6% 63.0% -44 bps

Equity in Income of Investees 39.5 32.2 22.9% 43.3 -8.7% 171.4 149.3 14.8%

Financial Result 51.7 43.1 20.0% 49.6 4.4% 181.5 208.9 -13.1%

Net Income* 182.1 217.3 -16.2% 281.6 -35.3% 1,081.5 1,074.3 0.7%

Adjusted Net Income 341.9 379.4 -9.9% 403.7 -15.3% 1,609.8 1,612.1 -0.1%

Adjusted EPS (in R$) 0.180 0.196 -8.6% 0.211 -15.0% 0.839 0.835 0.5%

Reconciliations


51/54

51

Reconciliations

ADJUSTED NET INCOME RECONCILIATION

ADJUSTED EXPENSES RECONCILIATION

* Attributable to BM&FBOVESPA shareholders.


otherwise indicated) 4Q13 4Q12Change

4Q13/4Q12 3Q13Change

4Q13/3Q13 2013 2012Change

4Q13/3Q13

GAAP net income* 182.1 217.3 -16.2% 281.6 -35.3% 1,081.5 1,074.3 0.7%

Stock options plan 6.8 7.9 -14.5% 5.6 20.2% 28.1 32.3 -12.9%

Deferred tax liabilities 138.9 134.8 3.1% 138.9 0.0% 555.6 539.1 3.1%

Equity in income of investees (net of taxes) 3.3 14.0 -76.1% 38.2 -91.3% 120.4 111.9 7.6%

Recoverable taxes paid overseas 17.4 15.2 14.9% 15.8 10.3% 64.8 60.2 7.7%

Provision - health plan (net of taxes) 0.0 18.2 - 0.0 - 0.0 18.2 -

Adjusted net income 341.9 379.4 -9.9% 403.7 -15.3% 1,609.8 1,612.1 -0.1%


otherwise indicated)

4Q13 4Q12Change

4Q13/4Q12

3Q13Change

4Q13/3Q13

2013 2012Change

4Q13/3Q13Total Expenses 253.5 256.0 -1.0% 194.1 30.6% 797.2 763.1 4.5%

Depreciation (31.3) (23.8) 31.5% (32.5) -3.8% (119.7) (93.7) 27.6%

Stock options plan (6.8) (7.9) -14.5% (5.6) 20.2% (28.1) (32.3) -12.9%

Tax on dividends from the CME Group (36.2) (18.2) 98.8% (5.1) 610.5% (51.0) (37.4) 36.4%

Provisions (10.8) (31.9) -66.1% (0.6) 1611.2% (22.6) (36.2) -37.5%

Adjusted Expenses 168.4 174.2 -3.3% 150.2 12.1% 575.8 563.5 2.2%

Summary of Balance Sheet


52/54

52

(Consolidated)

LIABILITIES AND EQUITYASSETS

(In thousands of R$) 2013 2012 (In thousands of R$) 2013 2012

Current assets 4,319,483 3,536,282 Current liabilities 2,710,846 1,660,609

Cash and cash equivalents 1,196,589 43,642 Collateral for transactions 2,072,989 1,134,235

Financial investments 2,853,393 3,233,361 Others 637,857 526,374

Others 269,501 259,279 Noncurrent liabilities 3,886,921 3,072,623

Noncurrent assets 21,577,176 20,610,832 Debt issued abroad 1,426,193 1,242,239

Long-term receivables 1,135,424 808,868 Deferred inc. tax and social contrib. 2,295,774 1,739,644

Financial investments 820,778 573,636 Others 164,954 90,740

Others 314,646 235,232 Equity 19,298,892 19,413,882

Investments 3,346,277 2,928,820 Capital 2,540,239 2,540,239

Property and equipment, net 423,150 360,993 Capital reserve 16,056,681 16,037,369

Intangible assets 16,672,325 16,512,151 Others 687,309 820,310

Goodwill 16,064,309 16,064,309 Non-controlling interests 14,663 15,964

Total Assets 25,896,659 24,147,114 Total liabilities and equity 25,896,659 24,147,114

Final Remarks


53/54

Final Remarks

53

SOLID FINANCIAL PROFILE AND STRONG COMMITMENT TO RETURNING CAPITAL

High cash generation

Significant operating leverage

Strong focus on expense discipline

Commitment to returning capital to shareholders through payout and share buyback

DIVERSIFIED REVENUE BASE

Growing diversification (development of products and services)

Trading and post-trading revenues

TECHNOLOGICAL INNOVATION

Development of cutting edge IT platforms (fostering market development and strengthening ties withmarket participants and clients)

Leverage on the core IT platforms and established relationship with players to launch new productsand services (one-stop-shop)

RESILIENCE AND STRATEGIC POSITION

Commitment to the market integrity maintenance

Strengthening the competitive edge by delivering efficiency to the market


54/54

BM&FBOVESPAINVESTOR RELATIONS

+55 (11) 2565 4729 / 4418 / 4834 / 7073 / 4007

[email protected]

ir.bmfbovespa.com.br

bvmf presentation - march 2014

Documents