BME Business Performance 4Q and FY 2014
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The document provides an overview of Bolsas y Mercados Espanoles' (BME) business performance from January to December 2014. Key points include: - Net profit increased 12.4% in Q4 2014 and 15.2% for the full year 2014, the best annual result since 2008. - Equity trading volumes and investment flows channeled through the exchange increased significantly year-over-year. - Settlement and registration volumes were up but revenues grew modestly. - Information subscriptions and quote accesses continued an upward trend while revenues increased sharply.
![- 25 -
February 2015
Business Evolution January December 2014
EBITDA FY 2014/2013 [ Mill.] Net Profit FY2014/2013 [ Mill.]
Comparison with FY 2013
Revenues FY 2014/2013 Costs FY 2014/2013
Margins
[ Mill.] [ Mill.]
+ 11.3% + 4.3%
+ 14.6% + 15.2%
342.5 307.7
FY 2014 FY 2013
103.5
99.2
FY 2014 FY 2013
239.0 208.5
FY 2014 FY 2013
164.9 143.1
FY 2014 FY 2013](https://image.slidesharecdn.com/bme4q14-150227021426-conversion-gate02/85/BME-Business-Performance-4Q-and-FY-2014-25-320.jpg)
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BME Business Performance 4Q and FY 2014
- 1. - 1 - February 2015 Business Evolution January December 2014 Business Performance Fourth quarter and FY/2014
- 2. - 2 - February 2015 Business Evolution January December 2014 Disclaimer This presentation, which is personal to the recipient, has been prepared and produced by Bolsas y Mercados Espa単oles, Sociedad Holding de Mercados y Sistemas Financieros, S,A, (BME) solely for the benefit of investment analysis and may not be used for any purpose other than assessment of investments concerning BME, Unless otherwise stated, BME is the source for all data contained in this presentation, Such data is provided as at the date of this presentation and is subject to change without notice, This presentation is strictly confidential and is being furnished to you solely for your information, It may not be reproduced, redistributed, passed on or published, in whole or in part, to any other person for any other purpose, This presentation does not constitute or form part of, and should not be construed as, an offer or invitation for the sale of or the subscription of, or a solicitation of any offer to buy or subscribe for, any securities, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any offer, contract, commitment or investment decision relating thereto, nor does it constitute a recommendation regarding the securities of BME, Neither this presentation nor any copy of it may be taken, transmitted into or distributed in the United States, the United Kingdom, Canada, Australia or Japan except by or on the express instructions of BME, The distribution of this presentation in other jurisdictions may also be restricted by law and persons into whose possession this presentation comes should inform themselves about and observe any such restrictions, This presentation is directed only at persons who (i) have professional experience in matters relating to investments falling within article 19(5) of the Financial Services and Markets Act 2000 (financial promotion) order 2005 (the order); or (ii) are persons to whom it can otherwise lawfully be distributed (all such persons together being referred to as relevant persons), This presentation must not be acted on, or relied on by, persons who are not relevant persons, The information in this presentation has not been independently verified, No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy or completeness of the information or opinions contained herein, None of BME, any of its shareholders, or any of their respective subsidiary undertakings or affiliates or any of such persons directors, officers or employees, advisers or other representatives, accepts any liability whatsoever (whether in negligence or otherwise) arising, directly or indirectly, from the use of this presentation or otherwise arising in connection therewith, This presentation could include forward-looking statements, These forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause our actual results, performance, achievements or industry results to be materially different from those expressed or implied by these forward-looking statements, Forward-looking statements speak only as of the date of this presentation and BME expressly disclaim any obligation or undertaking to release any update of, or revisions to, any forward-looking statements in this presentation as a result of any change in our expectations or any change in events, conditions or circumstances on which these forward-looking statements are based,
- 3. - 3 - February 2015 Business Evolution January December 2014 Index A. Results B. Business Overview C. Financials D. Business Drivers
- 4. - 4 - February 2015 Business Evolution January December 2014 Index A. Results B. Business Overview C. Financials D. Business Drivers
- 5. - 5 - February 2015 Business Evolution January December 2014 Results Net profit Net profit increase of 12.4% compared to 4Q13 +12.4% ( Million) 38.0 42.2 41.5 38.5 42.7 4Q13 1Q14 2Q14 3Q14 4Q14
- 6. - 6 - February 2015 Business Evolution January December 2014 Results Net profit Net profit increase of 15.2% compared to 2013. Best year result since 2008 +15.2% ( Million) 150.0 154.2 155.1 135.5 143.1 164.9 2009 2010 2011 2012 2013 2014
- 7. - 7 - February 2015 Business Evolution January December 2014 Solid operating leverage Costs Revenues Revenues not linked to volumes Ratio 78% 90% 106% 109% 105% 103% 112% 118% 114% 112% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
- 8. - 8 - February 2015 Business Evolution January December 2014 Key ratios benchmarking Efficiency ROE - BME卒s data as of 31/12/2014 - Average peer Group figures are calculated using last results published and not taking account of goodwill impairment charges 40.9% 17.9% BME Average Peer Group 30.2% 47.5% BME Average Peer Group
- 9. - 9 - February 2015 Business Evolution January December 2014 Dividends: Maximizing shareholders卒 returns 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 0.65 0.89 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 1.972 Total Dividends /Share Pay Out 82% 86% 1.9721.9721.972 89% 86% 86% 1.972 98% 1.65 96% 1.89 96%
- 10. - 10 - February 2015 Business Evolution January December 2014 Index A. Results B. Business Overview C. Financials D. Business Drivers
- 11. - 11 - February 2015 Business Evolution January December 2014 Business Areas Consolidated Revenues FY 2014 - % EBITDA FY 2014- % Equity 46.3% Settlement, 24.5% Clearing 5.2% Information 11.2% Derivatives 3.7% Fixed Income 3.4% IT & Consulting 5.6% Equity 48.7% Settlement, 26.4% Clearing 4.0% Information 12.2% Derivatives 2.9% Fixed Income 2.7% IT & Consulting 3.2% Redefining Business Units
- 12. - 12 - February 2015 Business Evolution January December 2014 162,343 164,546 158,225 219,407 119,431 190,728 226,668 196,596 270,696 165,785 1Q 2Q 3Q 4Q 1Q 2015/2014 (*) 40.8 46.1 40.8 48.8 71.1 2010 2011 2012 2013 2014 Equity Market Equity- Turnover (Mill.) Path of growth in equity activity Thousands of 4Q 2014 4Q 2013 % FY 2014 FY 2013 % Revenues 42,052 36,857 14.1% 156,548 132,276 18.3% Expenses (9,170) (10,038) -8.6% (38,113) (38,400) -0.7% EBITDA 32,882 26,819 22.6% 118,435 93,876 26.2% Turnover 2013( Mill.) Turnover 2014 ( Mill.) + 17% + 38% + 24% + 23% + 39% Equity trades (Mill.) (*) as of 25 February + 46%
- 13. - 13 - February 2015 Business Evolution January December 2014 14,164 18,901 28,514 30,810 30,683 13,780 18,838 165 1,292 5,427 2010 2011 2012 2013 2014 New shares issued of listed companies New listings (IPOs) 27,944 37,739 32,102 28,679 36,110 Companies using the market to diversify financing and deleverage Investment flows channeled to the Exchange ( Million) Total of 36,110 million euros in investment flows channeled to the Exchange (+12.5%). Strongest volume in history with 185 capital increase operations (+21.7%), Admission of new companies (IPOs) in the amount of 5.4 billion, more than four times the 2013 amount. Scrip-dividend amounted to 13.1 billion euros (+24.9%), new record high. Source: FESE (Federation of European Stock Exchanges) Equity Market
- 14. - 14 - February 2015 Business Evolution January December 2014 1,514 1,492 1,480 1,466 1,456 676 710 754 751 722 4Q13 1Q14 2Q14 3Q14 4Q14 2,1782,2172,190 2,2342,202 13.8 13.6 12.9 12.4 16.2 4Q13 1Q14 2Q14 3Q14 4Q14 Par Value registered in FI Market value registered in Equity Securities under custody: Volumes ( Billion) Settlement & Registration Settlement: Number of trades settled (Million of trades) Revenue Growth in settlement. Work intensification of system reform Thousands of 4Q 2014 4Q 2013 % FY 2014 FY 2013 % Revenues 22,148 19,608 13.0% 82,969 81,437 1.9% Expenses (6,540) (3,871) 68.9% (18,741) (14,069) 33.2% EBITDA 15,608 15,737 -0.8% 64,228 67,368 -4.7%
- 15. - 15 - February 2015 Business Evolution January December 2014 96 107 113 112 105 3.9 4.1 3.5 3.2 3.0 4Q13 1Q14 2Q14 3Q14 4Q14 Subscribers (Thousand) 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) Positive cycle in market data distribution Thousands of 4Q 2014 4Q 2013 % FY 2014 FY 2013 % Revenues 10,709 8,481 26.3% 37,963 32,994 15.1% Expenses (2,254) (2,004) 12.5% (8,364) (7,481) 11.8% EBITDA 8,455 6,477 30.5% 29,599 25,513 16.0%
- 16. - 16 - February 2015 Business Evolution January December 2014 Volume (Mwh) traded in Energy market (Thousand) 11,144 10,364 10,239 5,051 6,473 4Q13 1Q14 2Q14 3Q14 4Q14 314,932 397,583 233,375 237,474 245,613 4Q13 1Q14 2Q14 3Q14 4Q14 Clearing Mixed performance in revenues. Influence of C&S Spanish reform Thousands of 4Q 2014 4Q 2013 % FY 2014 FY 2013 % Revenues 4,643 4,754 -2.3% 17,703 16,178 9.4% Expenses (2,526) (1,517) 66.5% (7,997) (5,545) 44.2% EBITDA 2,117 3,237 -34.6% 9,706 10,633 -8.7% Turnover BME Clearing REPO ( Million)
- 17. - 17 - February 2015 Business Evolution January December 2014 4,537 2,354 14,928 13,119 8,467 7,491 26,945 25,635 4Q13 4Q14 FY13 FY14 1,525 2,023 5,579 6,930 543 1,029 1,987 3,035 1,542 1,840 5,172 7,320 4Q13 4Q14 FY13 FY14 Derivatives (Thousand of contracts) IBEX速 contracts continue to grow Stock derivatives contracts tradedIndex derivatives contracts traded IBEX 35速 Futures MiniIBEX 35速 Futures IBEX 35速 Options Stock Futures Stock Options (Thousand of contracts) Thousands of 4Q 2014 4Q 2013 % FY 2014 FY 2013 % Revenues 3,349 2,959 13.2% 12,409 11,636 6.6% Expenses (1,322) (1,176) 12.4% (5,275) (5,539) -4.8% EBITDA 2,027 1,783 13.7% 7,134 6,097 17.0%
- 18. - 18 - February 2015 Business Evolution January December 2014 212 304 241 102 49 69 76 111 102 115 4Q13 1Q14 2Q14 3Q14 4Q14 164 204 352 380 281 Fixed income Improvement of listing in the market and efficiency in the business unit Thousands of 4Q 2014 4Q 2013 % FY 2014 FY 2013 % Revenues 2,919 2,916 0.1% 11,628 11,959 -2.8% Expenses (1,373) (1,750) -21.6% (5,168) (5,731) -9.8% EBITDA 1,546 1,166 32.6% 6,460 6,228 3.7% AIAF Turnover (Billion ) Repo Cash Balance of MARF (Alternative Fixed Income Market) after first year of activity: 20 Market Members, 21 registered Advisers and 4 brokers 7 issues maturing in 5, 6, 7 and 10 years (308 million) 5 promissory note issue programmes (maximum balance of 420 million) 1 issue of securitization (20 million). Open for a maximum amount of 500 million
- 19. - 19 - February 2015 Business Evolution January December 2014 IT & Consulting Thousands of 4Q 2014 4Q 2013 % FY 2014 FY 2013 % Revenues 5,086 3,670 38.6% 18,835 16,976 11.0% Expenses (2,950) (2,786) 5.9% (11,041) (10,263) 7.6% EBITDA 2,136 884 141.6% 7,794 6,713 16.1%
- 20. - 20 - February 2015 Business Evolution January December 2014 Breakdown by business areas Revenues Thousands of 4Q 2014 4Q 2013 % 2014 2013 % Equity 42,052 36,857 14.1% 156,548 132,276 18.3% Settlement 22,148 19,608 13.0% 82,969 81,437 1.9% Clearing 4,643 4,754 -2.3% 17,703 16,178 9.4% Information 10,709 8,481 26.3% 37,963 32,994 15.1% Derivatives 3,349 2,959 13.2% 12,409 11,636 6.6% Consulting & IT 5,086 3,670 38.6% 18,835 16,976 11.0% Fixed income 2,919 2,916 0.1% 11,628 11,959 -2.8%
- 21. - 21 - February 2015 Business Evolution January December 2014 Breakdown by business areas EBITDA Thousands of 4Q 2014 4Q 2013 % 2014 2013 % Equity 32,882 26,819 22.6% 118,435 93,876 26.2% Settlement 15,608 15,737 -0.8% 64,228 67,368 -4.7% Clearing 2,117 3,237 -34.6% 9,706 10,633 -8.7% Information 8,455 6,477 30.5% 29,599 25,513 16.0% Derivatives 2,027 1,783 13.7% 7,134 6,097 17.0% Consulting & IT 2,136 884 141.6% 7,794 6,713 16.1% Fixed income 1,546 1,166 32.6% 6,460 6,228 3.7%
- 22. - 22 - February 2015 Business Evolution January December 2014 Index A. Results B. Business Overview C. Financials D. Business Drivers
- 23. - 23 - February 2015 Business Evolution January December 2014 Balance sheet as of December, 31th (Thousands of ) 2014 2013 Goodwill 80,619 82,190 Other non-current assets 85,258 82,041 Cash and cash equivalents 205,163 164,254 Current financial assets 84,830 97,158 Non-Group current financial assets 33,400,456 38,400,280 Other current assets 92,190 77,884 Total assets 33,948,516 38,903,807 Owners' Equity 418,931 392,140 External Partners 0 166 Non-current liabilities 18,199 17,534 Current liabilities 33,511,386 38,493,967 Total equity and liabilities 33,948,516 38,903,807
- 24. - 24 - February 2015 Business Evolution January December 2014 P/L Thousands of 4Q 2014 4Q 2013 % FY 2014 FY 2013 % Revenues 93,438 81,787 14.2% 342,473 307,705 11.3% Expenses (29,316) (24,770) 18.4% (103,511) (99,205) 4.3% EBITDA 64,122 57,017 12.5% 238,962 208,500 14.6% EBIT 62,536 54,862 14.0% 232,566 201,086 15.7% Financial results (45) 354 -112.7% 1,863 3,265 -42.9% Share of profit (loss) of associates (465) (266) 74.8% 593 (670) -188.5% EBT 62,026 54,950 12.9% 235,022 203,681 15.4% Net Profit 42,695 37,980 12.4% 164,924 143,140 15.2%
- 25. - 25 - February 2015 Business Evolution January December 2014 EBITDA FY 2014/2013 [ Mill.] Net Profit FY2014/2013 [ Mill.] Comparison with FY 2013 Revenues FY 2014/2013 Costs FY 2014/2013 Margins [ Mill.] [ Mill.] + 11.3% + 4.3% + 14.6% + 15.2% 342.5 307.7 FY 2014 FY 2013 103.5 99.2 FY 2014 FY 2013 239.0 208.5 FY 2014 FY 2013 164.9 143.1 FY 2014 FY 2013
- 26. - 26 - February 2015 Business Evolution January December 2014 31.4% 30.3% 30.2% 32.2% 4Q14 4Q13 FY14 FY13 46.9% 45.1% 44.5% 49.3% 4Q14 4Q13 FY14 FY13 66.9% 67.1% 67.9% 65.4% 4Q14 4Q13 FY14 FY13 Efficiency & Profitability ROE Evolution EBIT/Revenues Ratio Evolution % ROE % EBIT/Revenues % Cost/EBIT % Efficiency Cost/EBIT Ratio Evolution Efficiency Ratio Evolution 40.6% 38.5% 40.9% 35.9% 4Q14 4Q13 FY14 FY13
- 27. - 27 - February 2015 Business Evolution January December 2014 Index A. Results B. Business Overview C. Financials D. Business Drivers
- 28. - 28 - February 2015 Business Evolution January December 2014 Business drivers: Highly liquid market Spanish blue-chips are the most liquid stocks in the EMU Source: Bloomberg 1) As of 31/12/14 RK FY14 Company Daily avg. FY14 Turnover ( Biilion)RK Relative weight at EuroStoxx50 (%)1) Turnover ( Biilion) 163.6 138.1 129.4 123.1 116.6 100.3 100.1 92.1 92.0 89.7 63.9 63.6 53.6 0.64 0.55 0.51 0.49 0.46 0.40 0.39 0.36 0.36 0.36 0.25 0.25 0.21 4.460% 1.660% 2.720% 1.560% 2.470% 2.650% 6.220% 2.770% 4.640% 3.330% 0.900% 1.470% 1.180% 1 2 3 4 5 6 7 8 9 10 20 21 27
- 29. - 29 - February 2015 Business Evolution January December 2014 Business drivers: Highly liquid market Quality of spreads and best market impact for Spanish stocks Avg. Spread (%)Avg. Spread (%) 0.359% 0.304% 0.290% 0.275% 0.271% 0.273% 0.249% 0.304% 0.322% 0.289% 0.345% 0.340% 0.326% 0.068% 0.066% 0.068% 0.064% 0.062% 0.061% 0.058% 0.059% 0.062% 0.056% 0.061% 0.055% 0.059% 201312 201401 201402 201403 201404 201405 201406 201407 201408 201409 201410 201411 201412 Avg. Spread (%) 1.037% 1.010% 0.984% 0.927% 0.988% 1.022% 0.960% 1.095% 1.303% 1.102% 1.434% 1.438% 1.283% IBEX 35速 spread narrowed by 0.9 basis points compared to December 2013. Mid-cap stocks have improved their average spread 3.3 basis points, while the spread in small caps widened in the last months with the increase in volatility. Source: Market annual and monthly reports
- 30. - 30 - February 2015 Business Evolution January December 2014 Distribution by markets of business volume of the IBEX 35速 companies (2008 1H14) Diversified market Source: Interim Reports from listed companies obtained from CNMV Spain EU OCDE Rest 19% 20% 25%
- 31. - 31 - February 2015 Business Evolution January December 2014 BME: Positive drivers improving the business environment
- 32. - 32 - February 2015 Business Evolution January December 2014 + BME Deleverage Accelerating growth: employment, domestic consumption, Exports Reforms Low interest rates Low CPI Expansionary monetary policy High liquidity Less bank financing BME: Positive drivers Macro Scenario The scenario macro and ECB measures create a positive circuit channeling savings
- 33. - 33 - February 2015 Business Evolution January December 2014 0 20 40 60 80 100 1990 1992 1993 1995 1997 1999 2000 2002 2004 2006 2007 2009 2011 2013 Spain Italy Germany France United Kingdom EE.UU. % BME: Positive drivers Structural change in funding Market financing (M) vs banking (B) of non financial companies (1990 2013)
- 34. - 34 - February 2015 Business Evolution January December 2014 BME: Diversification and growth Bet for geographical diversification: technology, regulation and cooperation, basic pillars for business development Cooperation: REGIS TR速 Technology: Algeria fixed income Shareholdings: Mexico: Mexican Stock Exchange Colombia: Fixed income Colombian CCP Consulting: Peru, Mexico, Chile, Guatemala, Colombia Technology: Infobolsa: Mexico SIBE: Rep. Dominicana, El Salvador, Venezuela, Ecuador, Uruguay, Bolivia Visual Trader: Chile Derivatives: Mexico Open Finance
- 35. - 35 - February 2015 Business Evolution January December 2014 BME: Diversification and growth Use of installed capacity o as a way to generate value add and revenue source diversification
- 36. - 36 - February 2015 Business Evolution January December 2014 Q&A