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BM&F Bovespa 3Q08 Earnings Conference Call November 12
BM&F Bovespa 3Q08 Earnings Conference Call November 12
Net Revenues Operating Expenses Operating Result Operational Margin EBITDA EBITDA Margin Goodwill Amortization
(369,656) (189,642)
Financial Result
Non Operating Result
Net Income Before Tax
14,922
707,428 (262,438) 86,177 (961) 530,206 43.1%
3
542,017
3,329 (607) 329,236
Income Tax and Social Cont. Deferred Income and Soc Cont. Minority Interested Net Income Net Margin
(215,503)* (46,935)
39.8%
The amount of deferred tax credits ,by the end of 1H08, was aggregated in the Income Taxes payable
28.0% 962.4
3Q07
2Q08
3Q08
9M07
9M08
3Q07
2Q08
3Q08
9M07
(%)
9M08
(R$ Millions)
EBITDA Margin
68.0% 68.1%
54.6%
764.9 44.8%
68.1% 8.5 bp
204.3 528.3
62.0%
6.1 bp
59.6%
3Q07
2Q08
3Q08
9M07
9M08
3Q07
2Q08
3Q08
9M07
9M08
3Q07
2Q08
3Q08
9M07
9M08
Gross Operating Revenues Revenues from trading and/or settlement systems - BM&F segment Revenues from trading and/or settlement systems - Bovespa segment Other operating revenues Deductions from revenues Net operating revenues Operating expenses Operating income Goodwill amortization Interest income, net Non-operating income Net income before taxes Income and social contribution taxes Deferred Income and social contribution taxes Minority interest Net income
402,008 157,388 232,541 12,079 (41,219) 360,789 (145,572) 215,217 77,989 9,742 302,948 (97,922) (690) 204,336
483,625 161,321 309,329 12,975 (49,446) 434,179 (146,700) 287,479 (81,105) 77,244 7,531 291,149 (124,973) (970) 165,206
450,833 170,386 264,601 15,846 (46,158) 404,675 (137,158) 267,517 (121,658) 67,957 4,080 217,897 (68,109) 86,177 (354) 235,611
1,071,551 458,373 577,361 35,817 (109,180) 962,371 (414,242) 548,129 232,485 16,627 797,241 (266,919) (2,056) 528,266
1,372,066 486,645 844,457 40,964 (140,492) 1,231,574 (416,408) 815,167 (202,763) 222,993 14,922 850,319 (304,445) 86,177 (961) 631,090
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3Q08 Total amount of shares (thousands) Earnings per share (R$) Adjusted earnings per share (R$) 2,038,073 0.116 0.155
Total amount of shares Fully Diluted (thousands) Earnings per share (R$) Adjusted earnings per share (R$)
2,044,014 0.115
2,044,014 0.309
0.154
0.374
Reported 1,231,574 (559,298) 672,277 54.6% 696,007 56.5% (202,763) 222,993 14,922 707,428 (262,438) (86,177) (961) 530,206 43.1% 664.030 53.9%
Non Recur.
Adjusted
1,231,574
Net Revenues Operating Expenses Operating Result Operating Margin EBITDA EBITDA Margin Goodwill Amortization Financial Income, net Non-Operating Income Income Before Taxes Income Tax and Social Contribution Deferred Tax Credits Minority Interest Net Income Net Margin Adjusted Net Income by Goodwill Adjusted Net Margin by Goodwill
222,993 14,922 90,405 90,405 142,890 (24,162) (24,162) (42,007) (24,162) (24,162) 850,318 (304,445) (86,177) (961) 100,884 66,243 66,243 100,884 66,243 147,348 631,090 51.2% 764.914 62.1%
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Assets
Current
(R$ Thousands)
2,408,035 2,055,229 352,806 585,471 17,759,920 1,317,372 242,406 16,182,148 17,994 20,753,426
Current Cash Collateral Short Term Debt Others Long Term Liabilities Minority Interest Stockholders Equity Total Liabilities and Equity
Cash and Cash Equivalent Other Credits Long Term Assets Permanent Investments Fixed Intangible Deferred Total Assets
20,753,426
REVENUES
Revenues Breakdown
Bovespa Segment
309.3 232.5 13.8% 264.6
(R$ Thousands)
BM&F Segment
8.3% 161.3 157.4 170.4
(R$ Thousands)
6.2%
577.4
844.4
631.1
19.5%
528.3
3Q07
2Q08
3Q08
9M07
9M08
3Q07
2Q08
3Q08
9M07
9M08
Other Revenues
31.2% 12.9 12.1 15.8
(R$ Thousands)
14.4% 35.8
40.9
3Q07
2Q08
3Q08
9M07
9M08
10
6.5 4.9
5.3
27.0% 4.6
5.8 160
239.8
6.5%
58.7%
3Q07
2Q08
3Q08
10M07 10M08
3Q07
2Q08
3Q08
10M07 10M08
Annualized Turnover* 62.0% 61.5% 51.5% 7.6 p.p 10.5 p.p. 55.2% 54,8 62.8%
3Q07
2Q08
3Q08
10M07 10M08
3Q07
2Q08
3Q08
10M07 10M08
11
* Relation with the trading value of the cash market and the market cap of the exchange
3Q07
2Q08
3Q08
3Q07
2Q08
3Q08
(thousands) 565.1
72.1%
328.4
301.3 82.7%
3Q07
2Q08
3Q08
Oct 07
Oct 08
12
660
446
443 281
Companies listed on Stock Exchange Market Investment Funds and organized OTC issuers Total
3Q07
2Q08
3Q08
Securities Lending Open Interest - (R$ billions)
23.2
23.5
-48.8% 11.9
21.7
-63.4% 7.9
3Q07
2Q08
3Q08
Oct 07
Oct 08
13
2Q08 Margin
Basis Points Basis Points
3Q08 Margin
14.478
13.673
6.050
6.666
6.006
6.510
Cash
Derivatives
Total
Cash
Derivatives
Total
14
Overall ADTV
1.808
(Thousands)
1.797
-7,5% 1.662
3Q07
2Q08
3Q08
10M07
10M08
15
FX Rates
498 564 570
(Thousands)
1,047
-19.4% 844
21.1% 465
563
14.4%
10M07 10M08
10M07 10M08
(Thousands)
Agro (Thousands)
36.2% 12 16 62.2% 17 9
Indices
15
-23.6%
114
-20.2% 91
114
88
87
10M07 10M08
10M07 10M08
16
R$
Interest Rates in BRL FX Rates Indices Commodities OTC Web Trading Total Total
Includes trading fess, clearing fees, clearing fees at maturity and permanence fees On August 25, 2008, the discount policy applied to investors that held at least 10.000 stocks BMEF3 was terminated. 17
Volumes Slowdown was partially offset by the RPC Increase BM&F segment
Overall ADTV
1,808
(Thousands)
Overall RPC
(R$)
1,765
3Q07
2Q08
3Q08
3Q07
2Q08
3Q08
* Includes Trading Fees, Clearing Fees, Permanence Fees and Clearing Fees at the Maturity
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EXPENSES
19
3Q07 57,895 36,456 8,580 12,111 3,580 3,538 923 1,151 9,216 2,513 9,609
2Q08 56,966 41,618 7,923 9,962 3,270 4,984 1,096 1,200 7,824
Var% 3Q08x3Q07
3Q08 55,364 36,843 8,030 11,470 2,972 4,287 1,200 928 5,324 (1,916) 1,267 11,389 137,158
3Q08x2Q08
Personnel Data Processing Depreciation & Amortization Third Party Services Maintenance Communication Leases Supplies Marketing Taxes Board Compensation Others Total
-2.8% -12.0% 1.3% 15.1% -9.1% -14.0% 9.5% -22.7% -32.0% -213.7% -37.3%
39.7%
-4.4% 1.1% -6.4% -5.3% -17.0% 21.2% 30.0% -19.4% -42.2% -176.2% 18.5%
1,685
2,020 8,152
145,572 146,700
-6.5%
-5.8%
20
Personnel
416.4
57.9
(BRL Thousands)
0.5% 414.2
-4.4%
57 55.4
2.4%
163.4
167.3
3Q07
2Q08
3Q08
9M07
9M08
3Q07
2Q08
3Q08
9M07
9M08
Data Processing
(BRL Thousands)
(BRL Thousands)
41.6 36.5
10
11.5
5.7% 29
30.7
3Q07
2Q08
3Q08
9M07
9M08
3Q07
2Q08
3Q08
9M07
9M08
21
Capacity Evolution BM&F Segment Orders per second Trades per day (thousands)
Bovespa Segment Offers per day (millions) Trades per day (thousands)
2007 2008 2009 25 3,750 8,000 50 200 400 2.4 300 7.0 15.0 770 1,500
22
Income Before Tax Theoretical Tax (34%) Additions and exclusions in the Tax Report Book Interest on Capital Tax Loss - Bovespa Holding (1) Goodwill Amortizaton Others Total
(1) Refers to the tax loss used to compensate the taxable income obtained in September 2008
23
Deferred Asset
R$ Millions
Goodwill Amortization Tax Loss carry forward - Bovespa Holding (3) Temporary Provisions Impact on 2008 earnings Others Total Deferred Tax Assets
(4) (2)
(1)
(1) There will be additional deferred tax credits, to be registered considering the goodwill amortization for Bovespa Holding for the period of October and November/08, of R$ 27.9 million (2) Related to the 30% of the forecasted pre tax income of BVSP (former Bovespa Holding) for October and November/08
(3) Due to provisions created for employees compensation and third party expenditures
(4) Credits generated during the fiscal year of 2007
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Description Financial revenues(1) Financial expenses Interests regarding the loan IOF (Tax on financial transactions) PIS and COFINS contingencies - Interest on Capital - BM&FBOVESPA (2) Settlement and Custody services hired by BM&F Bank FX variations PIS and COFINS contingencies - Interest on Capital - BOVESPA HOLDING (3) Banking expenses Other NET INTEREST INCOME
3Q08 93,7 25,7 13,8 1,0 2,9 2,7 1,6 1,6 0,5 1,6 68,0
9M08 269,0 46,0 16,6 5,0 2,9 8,0 6,4 2,6 1,0 3,5 223,0
NOTE: The loan obtained with Bradesco Bank was entirely paid in November 11th, 2008.
(1) Composed mainly of the remuneration of BM&FBOVESPAs total cash, including both proper and collaterals deposited in cash. (2) Payment of taxes regarding Interest on Capital received by BM&FBOVESPA from BOVESPA HOLDING (3) Payment of taxes regarding Interest on Capital received by BOVESPA HOLDING from BVSP and CBLC
25
Synergy of Headcount
Layoffs
319 already dismissed by 09/30/2008 46 will leave the company until 04/04/2009
26
Synergies Update
131 125
R$ Millions
120
95*
90 24%
25%
26%
19% 50 18%
10%
2008E
2009E
2010E
Synergies
Processes - Others
BRL 95 MM
18%
Processes - Marketing
BRL 120 MM
15%
Processes - IT
Personnel
BRL 131 MM
15%
16% 22%
16%
68%
BRL 65 MM
31%
62%
BRL 75 MM
34%
66%
BRL 86 MM
28%
32%
38%
BRL 30 MM
BRL 45 MM
34%
BRL 45 MM
2008
2009
2010
28
The Company is able to buy 3.5% of the free-float that represents 71.2 million shares, to be cancelled afterwards.
5.941.200 shares were bought between September, 29th and October, 17th .
29
BVSP Ex-Bov.Holding
CBLC
Approval will happen through an Extraordinary General Meeting, scheduled for Nov 28th ,2008. The goodwill amortization expense will be deductible after the merger of BVSP and CBLC in BM&FBOVESPA
30
THIRD PHASE
DMA via direct connection Q109
Aug 29th
Sep
30th
Oct
Nov 4Q08
Dec
2009
3Q08
Co-location
Traditional DMA figures until Oct 31th/08: (i) 2,200 trades per day (6% from total) (ii) 20,000 contracts per day (1% from total) (iii) Around 30 brokers certified
FOURTH PHASE
DMA via a provider
BM&F Bovespa Investor Relations Web page: www.bmfbovespa.com.br/ri Phone numbers: 55 11 3233 2490/ 2847
E-mail: ri@bmfbovespa.com.br
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