BME Financial Results 4th. Quarter and year 2013

1. Business
Performance
Fourth quarter and
FY/2013
Business Evolution January – December 2013
-1February 2013

2. Disclaimer
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AND IT MAY NOT BE PUBLISHED, IN WHOLE OR IN PART, FOR ANY PURPOSE. BY RECEIVING THIS
INFORMATION, YOU BECOME BOUND BY THE ABOVE-REFERRED CONFIDENTIALITY OBLIGATION.
FAILURE TO COMPLY WITH SUCH CONFIDENTIALITY OBLIGATION MAY RESULT IN CIVIL,
ADMINISTRATIVE OR CRIMINAL LIABILITIES.
NEITHER THIS INFORMATION NOR ANY COPY OF IT MAY BE TAKEN, TRANSMITTED INTO,
DISCLOSED OR DISTRIBUTED IN THE UNITED STATES, CANADA, AUSTRALIA OR JAPAN. THE
DISTRIBUTION OF THIS INFORMATION IN OTHER JURISDICTIONS MAY ALSO BE RESTRICTED BY
LAW AND PERSONS INTO WHOSE POSSESSION THIS INFORMATION COMES SHOULD INFORM
THEMSELVES ABOUT AND OBSERVE ANY SUCH RESTRICTIONS.
THIS INFORMATION DOES NOT CONSTITUTE OR FORM PART OF ANY OFFER FOR SALE OR
SOLICITATION OF ANY OFFER TO BUY ANY SECURITIES NOR SHALL IT OR ANY PART OF IT FORM
THE BASIS OF OR BE RELIED ON IN CONNECTION WITH ANY CONTRACT OR COMMITMENT TO
PURCHASE SHARES.
THE INFORMATION CONTAINED IN THIS DOCUMENT HAS BEEN PROVIDED BY BME.
Business Evolution January – December 2013
-2February 2013

3. Index
A. Results
B. Business Overview
C. Financials
D. Business Drivers
Business Evolution January – December 2013
-3February 2013

4. Index
A. Results
B. Business Overview
C. Financials
D. Business Drivers
Business Evolution January – December 2013
-4February 2013

5. Results
Net profit
(€ Million)
+25.0%
39.0
38.0
33.1
33.0
30.4
4Q12
1Q13
2Q13
3Q13
4Q13
Net profit increase of 25% compared to 4Q12
Business Evolution January – December 2013
-5February 2013

6. Results
Net profit
(€ Million)
+5.7%
150.0
154.2
155.1
135.5
2009
2010
2011
2012
143.1
2013
Net profit increase of 5.7% compared to 2012
Business Evolution January – December 2013
-6February 2013

7. Solid operating leverage
106%
112%
109%
105%
2010
114%
103%
2009
118%
90%
78%
2005
2006
2007
Costs
2008
Revenues
Revenues not linked to volumes
Business Evolution January – December 2013
2011
2012
2013
Ratio
-7February 2013

8. Key ratios benchmarking
•
Efficiency
•
ROE
45.1%
32.2%
35.9%
11.8%
BME
Average Peer
Group
BME
Average Peer
Group
- BME´s data as of 31/12/2013
- Average peer Group figures are calculated using last results published and not taking account
of goodwill impairment charges
Business Evolution January – December 2013
-8February 2013

9. Dividends: Maximizing shareholders´ returns
Pay Out
86%
98%
1.972
1.972
1.972
1.972
0.372
0.372
0.372
0.60
0.60
0.60
0.60
0.65
0.60
0.60
0.60
0.60
0.60
0.40
0.40
0.40
0.40
0.40
2008
2009
2010
2011
2012
2013
First Interim Dividend
Total Dividends
/Share
86%
0.372
82%
Second Interim Dividend
86%
1.972
1.972
89%
96%
0.986
1.016
0.986
0.956
2007
Suplementary Dividend
Extraordinary Dividend
Sustainability of Pay-out
•
Proposed supplementary dividend: €0.65 per share
Business Evolution January – December 2013
-9February 2013

10. Index
A. Results
B. Business Overview
C. Financials
D. Business Drivers
Business Evolution January – December 2013
- 10 February 2013

11. Business Areas
Consolidated Revenues
FY 2013 - %
Business Evolution January – December 2013
EBITDA
FY 2013 - %
- 11 February 2013

12. Equity Market
Thousands of €
%
FY 2013
FY 2012
%
4Q 2013
4Q 2012
Revenues
32,745
22,524
45.4%
115,956
108,595
6.8%
Expenses
(8,137)
(8,125)
0.1%
(31,482)
(32,071)
-1.8%
EBITDA
24,608
14,399
70.9%
84,474
76,524
10.4%
Miles de millones
Equity (Turnover, volume and shares traded)
92
6.4
52
3.3
2.7
2.3
28.2
42
3.5
3.4
48
3.2
36
3.5
7.6 11.2
4.3
28.2
8.4
10/12 11/12 12/12 1/13
2/13
12.1
3/13
27.5
9.5
11.1
29.0
7.3
4/13
5/13
6/13
7/13
8/13
Turnover (€ Bill.)
Shares (Bill.)
48.7
48.2
50.8
53.0
4Q12
1Q13
2Q13
3Q13
4Q13
158
15.5
12.6
7.1
4.7
3.6
2.1
10.6
4.8
48
4.3
3.9
165
60
59
58
42
67
162
47.0
68
57
170
10.2
73
70
219
14.5
31.2
11.0
10.8
9/13 10/13 11/13 12/13
Trades (Mill.)
Turnover (€ Bill.)
Shares (Bill.)
Trades (Mill.)
Increase the pace of activity in trades and turnover in the last quarter
Business Evolution January – December 2013
- 12 February 2013

13. Clearing and Settlement
Thousands of €
%
FY 2013
%
4Q 2013
4Q 2012
FY 2012
Revenues
19,608
18,542
5.7%
81,437
78,975
3.1%
Expenses
(3,871)
(3,111)
24.4%
(14,069)
(14,033)
0.3%
EBITDA
15,737
15,431
2.0%
67,368
64,942
3.7%
Securities under custody: Volumes
(€ Billion)
Settlement: Number of trades settled
(Million of trades)
4Q12
11.6
12.1
2,123
2,116
2,159
2,190
530
537
616
676
1,590
10.6
2,118
528
13.8
1,593
1,579
1,543
1,514
10.4
1Q13
2Q13
3Q13
4Q13
4Q12
1Q13
2Q13
3Q13
4Q13
Par Value registered in FI
Market value registered in Equity
Positive quarter in settlement, balanced in registry
Business Evolution January – December 2013
- 13 February 2013

14. Market Data & Information
Thousands of €
%
4Q 2012
Revenues
8,481
8,211
3.3%
32,994
34,278
-3.7%
Expenses
(2,004)
(1,870)
7.2%
(7,481)
(7,354)
1.7%
6,477
6,341
2.1%
25,513
26,924
-5.2%
EBITDA
FY 2013
%
4Q 2013
FY 2012
Information: Subscribers to primary market sources (Average for the period
in thousands of subscribers and millions of accesses per quote)
97
94
4.0
4Q12
92
3.8
3.6
1Q13
96
87
2Q13
Subscribers (Thous.)
3.9
3Q13
3.9
4Q13
P.Quote (Mill.)
Turning point in subscribers
Business Evolution January – December 2013
- 14 February 2013

15. Listing
•
Companies using the market to diversify financing and deleverage
Investment flows channeled to the Exchange (€ Million)
11,363
8,675
•
6,215
4Q12
1Q13
2Q13
3Q13
Trend of strong activity in
investment flows channelled to
the exchange continues in 2013:
€32.1 billion accumulated to
December (+11.9%)
•
7,977
Scrip dividends totalled €10.4
billion FY13 (+17.8% yoy)
6,547
4Q13
Source: FESE (Federation of European Stock Exchanges)
Business Evolution January – December 2013
- 15 February 2013

16. Listing
Thousands of €
%
4Q 2012
Revenues
5,053
4,831
4.6%
19,851
20,997
-5.5%
Expenses
(2,686)
(2,505)
7.2%
(9,444)
(9,381)
0.7%
2,367
2,326
1.8%
10,407
11,616
-10.4%
EBITDA
FY 2013
FY 2012
%
4Q 2013
AIAF: New listings (Billion €)
81.6
45.0
29.8
4Q12
1Q13
Commercial paper
Corporate bonds
25.0
2Q13
MBS
3Q13
ABS
30.7
Effort
form
issuers
in
deleveraging continues with a
result of reduction in Private
Fixed Income listings
4Q13
Preferred securities
Positive contribution of equity to revenues
Business Evolution January – December 2013
- 16 February 2013

17. Derivatives
Thousands of €
%
4Q 2012
Revenues
7,713
6,367
21.1%
27,814
25,507
9.0%
Expenses
(2,693)
(2,607)
3.3%
(11,084)
(11,261)
-1.6%
5,020
3,760
33.5%
16,730
14,246
17.4%
EBITDA
FY 2013
%
4Q 2013
FY 2012
Index derivatives contracts traded
Stock derivatives contracts traded
(Thousand of contracts)
(Thousand of contracts)
34,507
5,579
5,172
4,745
26,945
4,206
21,221
2,425
14,928
1,987
1,433
1,542
1,525
856
348
4Q12
IBEX 35® Futures
8,467
7,796
4,378
543
4Q13
FY12
MiniIBEX 35® Futures
FY13
IBEX 35® Options
4Q12
4,537
4Q13
Stock Futures
FY12
Stock Options
FY13
Positive activity in the fourth quarter in all underlyings
Business Evolution January – December 2013
- 17 February 2013

18. Fixed income
Thousands of €
%
FY 2013
%
4Q 2013
4Q 2012
FY 2012
Revenues
1,975
1,916
3.1%
8,428
9,057
-6.9%
Expenses
(965)
(733)
31.7%
(3,205)
(3,013)
6.4%
EBITDA
1,010
1,183
-14.6%
5,223
6,044
-13.6%
AIAF – Turnover (Billion €)
742
76
422,544
399,126
407
67
381,378
350
92
249
57
122,193
281
69
127,432
666
Corporate
bonds
MBS&
ABS
Preferred
securities
258
192
212
4Q12
Commercial
paper
340
1Q13
2Q13
3Q13
4Q13
Repo
Cash
Trades
Margin improves with the increase in trading through platform
Business Evolution January – December 2013
- 18 February 2013

19. IT & Consulting
Thousands of €
%
4Q 2012
Revenues
3,670
4,203
-12.7%
16,976
16,333
3.9%
Expenses
(2,786)
(2,547)
9.4%
(10,263)
(10,370)
-1.0%
884
1,656
-46.6%
6,713
5,963
12.6%
EBITDA
VT Network
FY 2013
FY 2012
%
4Q 2013
Increase in orders channelled through the VT
network
Technical infrastructure services
New customers in direct connection interfaces and
in Proximity/Colocation
International consultancy services
Business Evolution January – December 2013
Alternative debt market in Mexico
Algerian public debt market modernisation
- 19 February 2013

20. Breakdown by business areas
Revenues
Thousands of €
%
4Q 2012
Equity
32,745
22,524
45.4%
115,956
108,595
6.8%
Clearing & Settlement
19,608
18,542
5.7%
81,437
78,975
3.1%
Listing
5,053
4,831
4.6%
19,851
20,997
-5.5%
Information
8,481
8,211
3.3%
32,994
34,278
-3.7%
Derivatives
7,713
6,367
21.1%
27,814
25,507
9.0%
Consulting & IT
3,670
4,203
-12.7%
16,976
16,333
3.9%
Fixed income
1,975
1,916
3.1%
8,428
9,057
-6.9%
Business Evolution January – December 2013
FY 2013
FY 2012
%
4Q 2013
- 20 February 2013

21. Breakdown by business areas
EBITDA
Thousands of €
%
4Q 2012
Equity
24,608
14,399
70.9%
84,474
76,524
10.4%
Clearing & Settlement
15,737
15,431
2.0%
67,368
64,942
3.7%
Listing
2,367
2,326
1.8%
10,407
11,616
-10.4%
Information
6,477
6,341
2.1%
25,513
26,924
-5.2%
Derivatives
5,020
3,760
33.5%
16,730
14,246
17.4%
884
1,656
-46.6%
6,713
5,963
12.6%
1,010
1,183
-14.6%
5,223
6,044
-13.6%
Consulting & IT
Fixed income
Business Evolution January – December 2013
FY 2013
FY 2012
%
4Q 2013
- 21 February 2013

22. Index
A. Results
B. Business Overview
C. Financials
D. Business Drivers
Business Evolution January – December 2013
- 22 February 2013

23. Balance sheet
as of December, 31th
(Thousands of €)
2013
2012
Goodwill
82,190
82,190
Other non-current assets
82,041
93,672
Cash and cash equivalents
164,254
185,927
97,158
83,431
38,400,280
36,059,479
77,884
77,362
38,903,807
36,582,061
392,140
412,631
166
200
17,534
20,563
38,493,967
36,148,667
38,903,807
36,582,061
Current financial assets
Non-Group current financial assets
Other current assets
Total assets
Owners' Equity
External Partners
Non-current liabilities
Current liabilities
Total equity and liabilities
Business Evolution January – December 2013
- 23 February 2013

24. P/L
Thousands of €
4Q 2013
4Q 2012
%
FY 2013
FY 2012
%
Revenues
81,787
67,026
22.0%
307,705
296,171
3.9%
Expenses
(24,770)
(23,730)
4.4%
(99,205)
(98,908)
0.3%
EBITDA
57,017
43,296
31.7%
208,500
197,263
5.7%
EBIT
54,862
41,508
32.2%
201,086
189,403
6.2%
354
789
-55.1%
3,265
2,862
14.1%
EBT
54,950
42,157
30.3%
203,681
191,672
6.3%
Net Profit
37,980
30,389
25.0%
143,140
135,473
5.7%
Financial results
Business Evolution January – December 2013
- 24 February 2013

25. Comparison with FY 2012
Revenues FY 2013/2012
Costs FY 2013/2012
[€ Mill.]
[€ Mill.]
+ 3.9%
307.7
+ 0.3%
99.2
296.2
FY 2013
98.9
FY 2013
FY 2012
FY 2012
Margins
EBITDA FY 2013/2012 [€ Mill.]
Net Profit FY2013/2012 [€ Mill.]
+ 5.7%
+ 5.7%
208.5
197.3
FY 2013
FY 2012
Business Evolution January – December 2013
143.1
135.5
FY 2013
FY 2012
- 25 February 2013

26. Efficiency & Profitability
ROE Evolution
EBIT/Revenues Ratio Evolution
% ROE
% EBIT/Revenues
67.1%
38.5%
35.9%
29.0%
4Q13
4Q12
FY13
65.4%
64.0%
4Q12
FY13
FY12
32.0%
FY12
Cost/EBIT Ratio Evolution
4Q13
Efficiency Ratio Evolution
% Efficiency
% Cost/EBIT
57.2%
49.3%
45.1%
52.2%
30.3%
4Q13
61.9%
4Q12
FY13
Business Evolution January – December 2013
FY12
4Q13
35.4%
32.2%
33.4%
4Q12
FY13
FY12
- 26 February 2013

27. Index
A. Results
B. Business Overview
C. Financials
D. Business Drivers
Business Evolution January – December 2013
- 27 February 2013

28. Business drivers: Highly liquid market
•
Spanish blue-chips are the most liquid stocks in the EMU
FY13
RK
Company
Turnover (€ Biilion)
Daily avg. FY13
Turnover (€ Biilion)
Relative weight at
EuroStoxx50 (%)1)
1
140.8
0.55
3.760%
2
115.8
0.45
2.650%
3
113.1
0.44
1.430%
4
109.7
0.44
2.550%
5
85.9
0.34
1.940%
6
84.0
0.33
5.080%
7
82.4
0.33
2.570%
8
79.7
0.31
4.170%
9
74.2
0.29
3.660%
10
74.1
0.29
2.910%
22
19
56.9
0.22
1.350%
27
26
47.0
0.18
1.220%
33
27
46.4
0.18
0.830%
Source: Bloomberg
1) As of 31/12/13
Business Evolution January – December 2013
- 28 February 2013

29. Business drivers: Highly liquid market
•
Quality of spreads and best market impact for Spanish stocks
4Q13
4Q12
RK
Company
Avg.Spread
(€)
Avg.Spread
(%)
Avg.Spread Avg.Spread
(%)
(€)
1
0.003
0.06%
0.002
0.03%
2
0.004
0.07%
0.004
0.04%
3
0.007
0.07%
0.006
0.05%
4
0.003
0.09%
0.002
0.05%
5
0.109
0.10%
0.084
0.07%
6
0.014
0.11%
0.010
0.05%
7
0.001
0.20%
0.004
0.09%
8
0.020
0.11%
0.017
0.06%
9
0.018
0.14%
0.014
0.08%
10
0.045
0.14%
0.047
The implicit transaction
cost
for
investors
measured by the IBEX
35® average spread for
4Q13 has improved 4.8
bps since 4Q12, moving
from 0.112% to 0.064%
0.09%
0.112%
0.064%
Source: Market annual and monthly reports
Business Evolution January – December 2013
- 29 February 2013

30. Diversified market
•
Distribution by markets of business volume of the IBEX 35® companies (2008 – 1H13)
26%
17%
19%
Spain
EU
OCDE
Rest
Source: Interim Reports from listed companies obtained from CNMV
Business Evolution January – December 2013
- 30 February 2013

31. Q&A
Business Evolution January – December 2013
- 31 February 2013