bme business performance 4q and fy 2014
Post on 16-Jul-2015
123 Views
Preview:
TRANSCRIPT
- 1 -
February 2015
Business Evolution January – December 2014
Business Performance
Fourth quarter andFY/2014
- 2 -
February 2015
Business Evolution January – December 2014
DisclaimerThis presentation, which is personal to the recipient, has been prepared and produced by Bolsas y Mercados Españoles, 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 person’s 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 -
February 2015
Business Evolution January – December 2014
Index
A. Results
B. Business Overview
C. Financials
D. Business Drivers
- 4 -
February 2015
Business Evolution January – December 2014
Index
A. Results
B. Business Overview
C. Financials
D. Business Drivers
- 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 41.538.5
42.7
4Q13 1Q14 2Q14 3Q14 4Q14
- 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)
150.0 154.2 155.1135.5 143.1
164.9
2009 2010 2011 2012 2013 2014
- 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 -
February 2015
Business Evolution January – December 2014
Key ratios benchmarking• Efficiency • ROE
- BME´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 PeerGroup
30.2%
47.5%
BME Average PeerGroup
- 9 -
February 2015
Business Evolution January – December 2014
Dividends: Maximizing shareholders´ 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 0.650.89
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 1.972Total Dividends /Share
Pay Out 82% 86%
1.9721.9721.972
89% 86% 86%
1.972
98%
1.65
96%
1.89
96%
- 10 -
February 2015
Business Evolution January – December 2014
Index
A. Results
B. Business Overview
C. Financials
D. Business Drivers
- 11 -
February 2015
Business Evolution January – December 2014
Business Areas
Consolidated Revenues FY 2014 - %
EBITDA FY 2014- %
Equity46.3%
Settlement, 24.5%
Clearing5.2%
Information 11.2%
Derivatives3.7%
Fixed Income
3.4%
IT & Consulting
5.6%
Equity48.7%
Settlement, 26.4%
Clearing4.0%
Information 12.2%
Derivatives2.9%
Fixed Income 2.7%
IT & Consulting
3.2%
Redefining Business Units
- 12 -
February 2015
Business Evolution January – December 2014
162,343 164,546 158,225
219,407
119,431
190,728226,668
196,596
270,696
165,785
1Q 2Q 3Q 4Q 1Q 2015/2014 (*)
40.846.1
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 -
February 2015
Business Evolution January – December 2014
14,16418,901
28,514 30,810 30,683
13,780
18,838165
1,292
5,427
2010 2011 2012 2013 2014
New shares issued of listed companies New listings (IPOs)
27,944
37,739
32,10228,679
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 -
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 2,2342,20213.8 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 -
February 2015
Business Evolution January – December 2014
96
107113 112
105
3.9 4.13.5 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 -
February 2015
Business Evolution January – December 2014
Volume (Mwh) traded in Energy market (Thousand)
11,14410,364 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 -
February 2015
Business Evolution January – December 2014
4,5372,354
14,92813,119
8,467 7,491
26,94525,635
4Q13 4Q14 FY13 FY14
1,5252,023
5,579
6,930
5431,029
1,987
3,035
1,5421,840
5,172
7,320
4Q13 4Q14 FY13 FY14
Derivatives
(Thousand of contracts)
IBEX® contracts continue to grow
Stock derivatives contracts tradedIndex derivatives contracts traded
IBEX 35® Futures MiniIBEX 35® Futures IBEX 35® 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 -
February 2015
Business Evolution January – December 2014
212
304
241
10249
69
76
111
102
115
4Q13 1Q14 2Q14 3Q14 4Q14
164
204
352380
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 -
February 2015
Business Evolution January – December 2014
IT & ConsultingThousands 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 -
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 -
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 -
February 2015
Business Evolution January – December 2014
Index
A. Results
B. Business Overview
C. Financials
D. Business Drivers
- 23 -
February 2015
Business Evolution January – December 2014
Balance sheetas 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 -
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 -
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 -
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 & ProfitabilityROE 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 -
February 2015
Business Evolution January – December 2014
Index
A. Results
B. Business Overview
C. Financials
D. Business Drivers
- 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
RKFY14
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 -
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® 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 -
February 2015
Business Evolution January – December 2014
• Distribution by markets of business volume of the IBEX 35® companies (2008 – 1H14)
Diversified market
Source: Interim Reports from listed companies obtained from CNMV
Spain EU OCDE Rest
19%
20%
25%
- 31 -
February 2015
Business Evolution January – December 2014
BME: Positive drivers improving the business environment
- 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 -
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 -
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®
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 -
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
top related