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January 2012
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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 industries BM&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 that could cause
actual results to differ materially from those projected in this presentation and do not guarantee any future BM&FBovespa
performance.
The factors that might affect performance include, but are not limited to: (i) market acceptance of BM&FBOVESPA services;
(ii) volatility related to (a) the Brazilian economy and securities markets and (b) the highly-competitive industriesBM&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 entrants to the Brazilian markets; (v)
ability to keep up with rapid changes in technological environment, including the implementation of enhanced
functionality demanded by BM&FBovespa customers; (vi) ability to maintain an ongoing process for introducing
competitive new products and services, while maintaining the competitiveness of existing 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 date they weremade, and BM&FBovespa undertakes no obligation to update them in light of new information or future development.
This presentation does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be
any sale of securities where such offer or sale would be unlawful prior to registration or qualification under the securities
law. No offering shall be made except by means of a prospectus meeting the requirements of the Brazilian Securities
Commission CVM Instruction 400 of 2003, as amended.
Forward Looking Statements
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BVMF STOCK PRICERecent Performance
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IOFs
10/17
R$14.97
Goodwill
11/30
R$13.04
Competition
News01/05
R$13.12
Rumors
about IOF
Exchanges Mergers
02/08
R$11.20
BATs02/15R$11.45
Reductions of Volumes
Estimates by the Market
New IOF on
Derivatives07/26
R$9.55
Direct Edge
11/21
R$10.11
Redemption of
IOF on Equities12/01
R$9.8860
70
80
90
100
110
120
130
140
Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11
BM&FBOVESPA IBOVESPA
BVMF3 recent performance
Note: updated until December 29, 2011
BVMF3 YTD: -25.2%
Ibovespa YTD: -18.1%
4
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BRAZILIAN MARKET OPPORTUNITIES
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Brazil represents a unique investment opportunity
New growth
cycle andinvestments in
infra-structure
Pre-salt Oil Exploration
Development of
Mortgage Market
Expansion of Middle
Class
Entrepreneurial StimulusGreater Internal
Demand
Rio Olympics 2016
andWorld Cup 2014
Increase in Income
Levels
Interest Rate
Decline
Brazil will
have the 6th
highest world
purchasingpower
by 2013
(Price
Coopers) (2)
Brazilian per
capita income
will rise fromUS$10k in
2010 to
US$20k in
2020 (1)
(1) LCA Consultores as of Jun/10.(2) Price Coopers as of Jan/10.
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Jan-05
Jul-05
Jan-06
Jul-06
Jan-07
Jul-07
Jan-08
Jul-08
Jan-09
Jul-09
Jan-10
Jul-10
Jan-11
Jul-11
Source: ABRAPP, WFE and BM&FBOVESPA7
Equity Market (BOVESPA Segment)Low penetration in the Brazilian market
Clients base: huge potential in retail and pension funds segments
Number of custody accounts (thousands)
128.6
Dec11
611.2
Pension funds portfolioLow penetration of equity and
derivatives in the main investorsportfolios
Stable and low interest rateenvironment encourage more
exposure in equities
Recent growth in the number ofretail investors, but still low
compared to other markets
Listed Companies
Low number of listed companies compared to othercountries
Lack of important economic sectors in the exchange,for instance: oil & gas, infrastructure, retail, IT andpharmaceutical,
Investment cycle may bring new companies andsectors to the exchange
Currently, SMEs are not able to raise money throughequity easily
Dec10 Listed Companies (27th in the World)
6,586
5,095
3,741 3,566 3,476 3,3452,966
1,999 1,798
379
India USA Canada Japan China / HK Spain London Australia Korea Brazil
2002 Jun-11
Equity
Fixed Income and Others
R$168 billion
R$545 billion
30.4%
27.7%
69.6%
72.3%
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8
Derivatives Market (BM&F Segment)Growth in the credit level will favor volumes
Credit: very low credit level and even lower in the case of mortgage transactions
Credit to GDP
Interest Rate in BRL contracts: growth in credit levels, specially in fixed rates, support the increase the activity offinancial institutions
FX contracts: growth in the amount of foreign trading and change in the culture of the Brazilian entrepreneurs can
push up volumes in this group of contracts, mainly in currencies other than US$
Index-based contracts: growth in cash equity market, the launching and development of ETFs and the growth ofexposure to equity by institutional investors can drive the growth of these contracts
Commodities contracts: cash settled contracts and the change in the behavior of farmers that are becoming more
sophisticated
Trade Flow (total Imports + Exports in USD billions)
27.4%
48.2%
4.5% 4.7%
Jan-0 1 Jan-0 2 Jan-0 3 Jan -0 4 Jan -0 5 Jan -0 6 Jan -0 7 Jan -0 8 Jan -0 9 Jan -1 0 Jan -1 1
Total Credit
Mortgage
229
281
371
281
384
442
2006 2007 2008 2009 2010 11M 2011
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MAIN INITIATIVES
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Launching of new productsProduct diversification strengthens revenues and competitive position
10 ETFs currently tradedGrowth in ETFs
Bidding process initiated to select equity options marketmakers for 10 companies and for the IBOVESPA
Market maker for options
Cross-listing of futures contracts with CME Group (stockindex-based and commodities contracts) and BRICSexchange (stock index-based contracts)
Cross-listing ofderivatives with CME and
BRICS
40 BDRs currently traded and other 30 to start in the
coming months
Launch of Additional
BDRs
Order book in foreign currency (targeting foreign retailinvestors)
Brazil Easy Investing
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Licensing TRADExpress Real Time Clearing system
Objective: integrating and modernizing our existing clearing facilities should proceed over 2012.
Integrated tests with the market and implementation of the systems scheduled to take place in 2013
Partnership advantages: License to use the software
Access to the source code
Selling rights over our new clearing platform
Multi-asset trading platform (PUMA Trading System)
State of the art in trading technology and technological independency
Derivates module successfully implemented in 2H11 Equities market to be concluded in 2H12
Strategic Projects
Registration systems for OTC derivatives
Objetive: modernize, improve and expand the range of our registration services for OTCderivatives, while offering our customers a streamlined, quality solution and thoroughregulatory reporting tool
One of the most flexible and complete engines for registration, price discovery, riskassessment, capture and lifecycle processing of these transactions
Three-module implementation: the first one is schedule to 2H12, the second one for1H13 and third module of the platform will be announced in due course
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Strengthening the sales force in other countries
- Offices in New York, London and Shanghai
Partnerships with international exchanges
- Strategic partnership with CME Group
- Asia: MoU and discussions with HKEx, Shanghaiand Shenzhen Exchanges
- Latam: MoU with Chile and Colombia exchangeand discussions with Peru and Colombia
- Cross listing of Index-based futures withexchanges ofBRICS countries
International ProjectsCreating a global market
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18.7
25.9
Jan-Aug 2011 Average (Sept - Dec 2011)
477613 671
755
425
56
199228
574
720
Nov-Dec/10 1Q11 2Q11 3Q11 4Q11
HFT via other connection models
HFT via Co-location
1,329
812899
533
1,145
18,628,5
48,7
2009 2010 2011
3.2684.438
7.227
dez-09
jan-10
fev-10
mar-10
abr-10
mai-10
jun-10
jul-10
ago-10
set-10
out-10
nov-10
dez-10
jan-11
fev-11
mar-11
abr-11
mai-11
jun-11
jul-11
ago-11
set-11
out-11
nov-11
Mega Bolsa GTS PUMA (2012)
Latency or round-trip time (milliseconds) inside BVMF 10-15 10-15
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BUSINESS MODEL AND REGULATORY
FRAMEWORK
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Possible CompetitionImportant considerations
EASING REGULATION IS NOT EXPECTED
Main requirements: pre-trade controls, self-regulatory (SRO), off exchange trades are not permitted
(internalization of orders and OTC), CCP for stocks trading, post-trading at the beneficial owner level Competition in other exchanges was intensified after easing regulation
THE EXCHANGE FEES (TRADING AND POST-TRADING) ARE PAID BY THE FINAL INVESTOR
Differently from USA and Europe, the final investors is the one who pays the exchange fees
Brokers couldnt increase their share in the all-in trading cost pie in case of reduction on the exchange fees
STOCKS TRADING ALL-IN COST IN BVMF IS COMPETITIVE
Despite the misleading perception, all-in cost in BVMF is competitive compared to other markets
Comparing only the trading fees among exchanges is misleading. BVMF provides higher portion of servicesthan the peers
IT INFRASTRUCTURE MOVING TO STATE OF THE ART There is no gap of IT infrastructure
Increasing participation of HFT via Co-location (moving to sub millisecond latency)
RECENT BM&FBOVESPA INITIATIVES (REBALANCING OF FEES STRUCTURE)
Shift between trading and post-trading fees
15
ili k l k
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Regulators words about sharing the post-trading facilities
in the regulations, there is nothing that either prohibits or obliges companies regarding use of the clearing services of
BM&FBovespa
Head of CVM, Maria H. Santana, for FT in Nov 15, 2011
CVM will receive a report from an independent consultant (Oxera)
Analysis of the Brazilian capital market framework
Some subjects that could be visited in this study: Block Trading Facility; High Frequency trading; Listing
requirements; among others
Positive characteristics of the Brazilian regulatory framework that will not change: transparency pre and post-trading (including prohibition for internalization of orders) and the beneficial owner level model
The study will be funded by a domestic broker as part of the payment of a fine (it is under discussion since the
beginning of the year)
The study is expected to be delivered in April or May 2012
Important issues regarding competition Benefits from market fragmentation versus implied risks (transparency, price discovering, among others)
Risk management: differently from many other markets, BVMFs clearing risk system is based on pre trade risk
management, what makes our market much safer (integrated model allows it)
Trading / auction rules: this rules are stricter in Brazil and must be harmonized among venues
Listed Companies monitoring: who and how to do that
Market supervision: how perform this role and assure the market efficiency
16
Brazilian Market Regulatory FrameworkLegal requirements: resilience, transparence, clear rules.
E i M k S l S B il C d i h USA
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DTCC
BRAZIL(All the trades must be matched on an
exchange environment)
USA(Brokers can internalize orders)
BVMF
Post tradingClearing (CCP)
Settlement
Central Depository
Trading
BVMF
Brokers
A and B
Investors Investors
Brokers
A and B
Investors Investors
Broker
A
Broker
B
100% vertically integrated: clearing, settlement andcentral depository at the beneficial owner level
Brokers control their clients portfolios and settlepositions through BVMFs infrastructure (this
impacts the post-trade fees charged by BVMF)
DTCC does the clearing, settlement and centraldepository of securities at the brokers level
Each broker (prime broker) has its own structure tocontrol their clients portfolios and settle positions
(this impact the prime brokers costs)
Trading Venues
17
Equity Market Settlement Structure - Brazil Compared with USATwo different regulatory frameworks
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Updated until: 12/29/2011
Market Capitalization (US$ billions) and 2010 EBITDA Margin (%)
Listed Exchange Business Model
Diversified and Integrated Integrated Derivatives Diversified but Not Integrated*
* Do not provide post-trading services for the equity market
Diversified and integrated Derivatives Diversified but not integrated
Business Model
18
Source: Bloomberg
* 12 months ended on Jun/11
18.4 16.9
12.0 11.89.0
7.3 5.6 5.3 4.6 3.6 3.4 2.2
80.1%
70.0%
55.0%
70.0% 67.0%
44.0%
78.1%
62.2%
48.0%42.1%
55.8%
68.4%
0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
70,0%
80,0%
-
5
10
15
20
25
30
35
HKEx CME Deutsche
Boerse
BVMF ICE Nyse
Euronext
ASX * SGX * Nasdaq LSE TMX BME
EBITDA Margin 2010
B ili M k t R l t F k
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Brokers &
investors
Trading
Pos-Trading
Regulation prohibits internalization of orders, dark pools and
ATS/MTFs, stocks trading in both exchange and OTC
simultaneously
Settlement and clearing of stocks trading must be done through
a CCP
Settlement and clearing at the beneficial owner level make the
Brazilian market safer and more resilient
Under the regulation in place, potential competitors would be
obliged to provide the same integrated solution, with the same
rules and transparency
The final investor pays the exchange fee
Other exchanges have been seeking integrated models (self
clearing models)
Naked access is not allowed
Naked short selling is not possible
19
Brazilian Market Regulatory FrameworkLegal requirements: resilience, transparence, clear rules.
New Fee Structure Bovespa Segment
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The minimum fee is paid by local institution and investment clubs and day trading, in this case, for all type of investors.
Brokers fee (Brazil and USA) is the average price collected from four USA discount brokers and from four Brazilian retail brokers in June 2011. The R$2.59exchange fee per order results from: 3.45bps on a trade of R$7.5 thousand (average size of the Home Broker trading).
3 It considers the average fee charge by BVMF and brokers, 2.975 bps and 5.000 bps, respectively.
New Fee Structure Bovespa SegmentDemystifying: BVMF prices are competitive
The new fee structure shows that the fees charged by BVMF are competitive
Lower Fee(Exchange)
Higher Fee(Exchange)
Bps Cents ofUS$
Bps Cents ofUS$
Trading Fee 0.70 0.196 0.70 0.196
Settlement Fee 1.80 0.504 2.75 0.770
BVMF Total Fee 2.50 0.700 3.45 0.966
Broker fee
(estimate)
(a) 1.50 0.420 1.50 0.420
(b) 5.00 1.400 5.00 1.400
(c) 10.00 2.800 10.00 2.800
All-in cost
(a) 4.00 1.120 4.95 1.386
(b) 7.50 2.100 8.45 2.366
(c) 12.50 3.500 13.45 3.766
Institutional Investors (stock price at US$28.00)
in the USA, the average all in trading cost could vary fromUS$0.02 to US$0.04 per share, in line with the Brazilian
market
+
=
BRL USA BRAZIL
Broker 13.80 9.06
Exchange - 2.59
All-in cost 13.80 11.65
In average, retail investors pay less to tradestocks in Brazil than they pay in USA!
Retail Investors (retail brokers simulation)
In the USA the interface is only with the brokeragehouse (the exchange cost is embedded within thebroker fee), while in Brazil the interface is with bothbroker and exchange
20
The average share of BVMF in the investorsall in cost ranges is 373%
F i th C h M k t
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Note: institutional investor simulation; 500 th stocks trading size; USD30.00 stock price; USD15 million value under custody; Deustche
Brse / Clearstream costs: trading: 0.00504%; clearing and settlement US$28.88 by settlement; trading and clearing/settlement are due
in both in and out of each transaction; custody: 0.05% a.a.
Deutsche Brse fee schedule and source done by Rosenblatt Securities Inc.
in USD
Holding Period - 3 months Holding Period - 12 months
BVMF Deutsche Brse BVMF Deutsche Brse
Local Foreigner100
Trades
25
TradesLocal Foreigner
100
Trades
25
Trades
Trading 2,100 2,100 1,512 1,241 2,100 2,100 1,512 1,241
Post trading 5,601 8,262 7,651 3,319 6,204 8,299 13,276 8,944
Clearing and Settlement 5,400 8,250 5,776 1,444 5,400 8,250 5,776 1,444
Depository 201 12 1,875 1,875 804 49 7,500 7,500
All-in cost 7,701 10,362 9,163 4,560 8,304 10,399 14,788 10,185
Comparing trading and post trading costs: BVMF vs. Deutshe Brse
In Germany, the post trading costs, in special the depository cost, are higher
than the trading costs
Fees in other Cash MarketComparing with Deutsche Brse (integrated model)
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39.7%
25.4%
18.8%
16.1%
Dec11
Source: Bloomberg (in USD traded value of 35 companies with ADRs programs )
End of CPMF
(Financial
Transaction Tax)Sarbanes-Oxley Act
(SOX)
*Updated until 12/31/2011
34.8%
65.2%
Novo Mercado
Launching
22
Brazilians stock trading breakdown
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 TotalIPOs - 1 - 7 9 26 64 4 6 11 11 139Follow ons 14 5 8 8 10 16 12 8 18 11 11 121Total 14 6 8 15 19 42 76 12 24 22 22 260
Dual Listings - - - 2 1 1 - - 1 - - 5
Public Offerings in Number of Companies
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Jan-11
Feb-11
Mar-11
Apr-11
May-11
Jun-11
Jul-11
Aug-11
Sep-11
Oct-11
Nov-11
Dec-11
Othe r USA Ve nue s - B razil ian ADRs NYSE - Brazi li an ADRs BM&FBOVESPA - c ompani es wi th ADRs BM&FBOVESP A (e xce pt comp an ie s with ADRs)
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OPERATIONAL HIGHLIGHTS
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1.21.6
2.4
4.95.5 5.3
6.5 6.5 6.5
7.3
6.5 6.76.1 5.9 5.7
7.7
6.3
7.1
5.96.2
2004 2005 2006 2007 2008 2009 2010 2 011* Jan-11 Feb -11
Mar-11
Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep -11 Oct -11 Nov-11 Dec-11
**Relation of the trading value in the cash market and the market cap of the exchange
* Updated until December 31, 2011
24
BOVESPA Segment: operational highlights
Average Daily Traded Value ADTV (BRL billions)
Number of Custody Accounts (Thousands) Turnover Velocity* (12 months average)
559 576
640 626 632 622 611
2008 2009 2010 1Q11 2Q11 3Q11 4Q11
30.8% 29.4%
36.8% 37.6% 38.7%42.3%
56.4%
63.2%66.6% 63.8% 64.2%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
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BOVESPA Segment: capital raising activity
There are 4 offerings in the pipeline
IPOs (4): Isolux Infrastructure, Brasil Travel Turismo e Participaes, Seabras Servios de Petrleo and CVC.
Follow-Ons (0):
25
* Excludes the capitalization with barrels reserves by federal government - BRL74.8 billion in Petrobras offering.
** Updated until December 30, 2011
Public Offerings (BRL billions)
Pipeline: already announced to the market
4,5 5.4 15.4
55.6
7.5 23.8 11.2 7.24.3 8.5
15.1
14.5
26.8
22.263.2
10.8
2004 2005 2006 2007 2008 2009 2010* 2011
IPO Follow-On
8.813.9
30.4
70.1
34.3
46.0
74.4
18.0
BOVESPA Segment
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15,2%
14,1%
1,8%
4,7%
16,2%
3,9%0,6%
6,8%
10,4%
26,4%
Oil, Gas and Biofuels Basic Materials Capital Goods and Servic es Construction and Transportation
Consumer Non Cyclical Consumer Cyclical Information Technology Telecommunications
Public Utilities Financial
15,7%
21,6%
2,5%
3,6%
8,6%
2,6%
0,3%
11,1%
11,5%
22,4%
78%
95%
70% 67%82%
53% 53%62
53%66%
36%
21%
130%
170%
129 % 126%107%
100%85%
100%
75% 67% 73%
39%
168%166%
138% 137%
118% 107%93%
81%75%
75% 74%
44%
Chile Singapore United Kingdom Canada USA Korea India China France Japan Brazil Mexico
2008 2009 2010
Hong Kong : 617% 1,095% 1,208%
Market Capitalization to GDP (%)*
Market Capitalization by Economic Sector
BOVESPA SegmentPotential to increase the number of listed companies
* Source: World Bank
26
Dec11 Dec05
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422 501 711 988 789 843
1,684 1,7971,937 2,068
2,364 2,552
1,2171,493
1220
2,383
1,774 1,589 1,7891,234
110168
266473
535 447
541496 438
391437
522
574531
491
501
586544
487
438
8674
68
11288 80
89 12362
11784
108
84114
110
195
120184 148
148
187109
124
167162 150
191285 218
248
221300
323292
286
340
350280 282
245
2004 2005 2006 2007 2008 2009 2010 2011* Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11
BRL Int. Rate (Thousands) FX (Thousands) Index (Thousands) Others (Thousands)
27
BM&F Segment: operational highlights
805 8521,167
1,740 1,573 1,521
2,5052,701
Average Daily Traded Volume ADTV (Thousands of contracts)
Rate per Contract - RPC (BRL)
2,6562,824
3,106 3,482
2,1992,430
2,107
3,418
Updated until: December 30, 2011
2,8302,596 2,706
2,065
2006 2007 2008 2009 2010 2011 J-11 F-11 M-11 A-11 M-11 J-11 J-11 A-11 S-11 O-11 N-11 D-11
Interest rates in BRL 0.906 0.950 1.141 0.979 0.889 0.918 0.794 0.877 0.853 0.750 1.111 1.053 1.096 0.917 0.998 0.931 0.928 1.086
FX rates 2.244 1.859 2.065 2.161 1.928 1.894 2.003 2.037 2.012 1.920 1.820 1.813 1.807 1.699 1.833 2.014 2.082 2.082Stock Indices 1.419 1.501 2.145 1.620 1.564 1.614 1.592 1.806 1.451 1.875 1.477 1.864 1.416 1.624 1.358 1.645 1.690 1.719
Interest rates in USD 1.094 0.965 1.283 1.357 1.142 0.941 1.143 1.159 0.989 0.951 0.801 0.944 0.846 0.851 0.918 1.069 0.922 0.930
Commodities 4.749 3.195 3.587 2.307 2.168 2.029 1.827 2.084 2.153 1.774 1.967 2.131 1.954 1.765 1.977 2.698 2.558 2.385
Mini contracts 0.034 0.054 0.162 0.176 0.128 0.129 0.147 0.144 0.135 0.139 0.132 0.140 0.132 0.125 0.111 0.118 0.124 0.132
OTC 1.571 2.111 2.355 1.655 1.610 1.635 1.412 1.414 1.359 1.367 2.107 1.535 1.606 1.830 1.575 1.234 2.051 2.444
Total RPC 1.247 1.224 1.527 1.365 1.134 1.106 1.021 1.075 1.025 0.964 1.252 1.220 1.220 1.034 1.136 1.177 1.153 1.293
Interest Rate in BRL Contracts
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Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11
-
200
400
600
800
1.000
1.200
2007 2008 2009 2010 2011 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11
1st. Maturity 2nd. Maturity 3rd Maturity 4th. Maturity 5th Maturity
28
Interest Rate in BRL ContractsStructural changes behind the growth in volumes
Interest Rate in BRL Contracts Breakdown by Maturity (thousands of contracts)
Uncertainty in consensusimpacts short term contracts
Fixed Rate Credit in BRL billions Public Debt / Fixed Rate - in BRL billions
Source: Brazilian Central Bank
Jan05R$180 bi
Nov11
R$739 bi
151.4
Nov'11:
647.9
Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11
High Frequency Trading (HFT)
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126211
257 218 218 248301
726681
791711
661
Jan /1 1 Fe b/ 11 Mar /1 1 Apr /1 1 May/ 11 Jun/ 11 Ju l/ 11 Aug/ 11 Se p/1 1 Oct /1 1 N ov/ 11 De c/1 1
1.0%
1.4%2.0%
1.6% 1.8%2.1%
2.6%
4.7% 5.4%
5.6%
6.0%5.3%
29
High Frequency Trading (HFT)HFT will play an important role in both cash and derivatives markets
HFT BM&F Segment(ADTV in thousands of contracts and mkt. share)
HFT Bovespa Segment(ADTV in BRL billions and mkt. share)
Co-location BM&F Segment Co-location Bovespa Segment(ADTV in thousands of contracts and mkt. share) (ADTV in BRL billions and mkt. share)
112 162 173186
246 232263
434 408
314
225 244
Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11
7.2%6.4%
6.2%4.8%5.6%
2.7%2.8%
2.9%2.1%
6.1%
4.2%5.9%
0.14 0.170.26
0.35 0.34 0.320.51 0.49 0.56
1.10
0.821.02
0.91 0.83
0.22 0.16
0.27
0.350.26 0.25
0.29 0.250.26
0.38
0.31
0.280.26
0.21
0.20 0.17
0.21
0.27
0.14 0.21
0.190.15
0.15
0.20
0.16
0.16
0.17
0.11
4.5%4.0%
5.7%
6.6%
5.9% 5.9%
8.7%7.6%
8.6%
11.4%
10.4%
10.3%
11.5%
9.3%
0,0
2,0
4,0
6,0
8,0
10,
12,
14,
-
0,20
0,40
0,60
0,80
1,00
1,20
1,40
1,60
1,80
ADTV (Foreigners) ADTV (Individuals) ADTV (Institutionals) % of overall market
0.56 0.50
0.73
0.96
0.75 0.78
1.000.90
0.97
1.68
1.301.46
1.34
0.56 0.50
0.73
0.96
0.75 0.78
1.000.90
0.97
1.68
1.301.46
1.34
4 2041 50
69
155
74 77 66101
65 65 67 82118 101
126162 155 153
12485
518
4441
50
43 38 43
45
29 5148
49
4542
49
8866 61
50
42
47
22
5377
93
9093
82
95
68
90 8890
10292
113
203218
167
133
120
42
17
10
17
16 1818
8
4
11
28 33
27
26
0.3%1.0%
2.8%
4.8%
3.8%
6.0%
4.9%4.8%
3.6%
4.7%
3.5%
4.2% 3.9%3.6%
6.7%5.4%
7.5%
7.3% 8.7%
8.3%
6.4%
6.9%
FX Equi ties Mi ni contracts Interest Rates in BRL % in Overall Volume
8
32
81
151
188
301
207 208
251
179
222 222
239
274251
300
408
239
481 474
334
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30
Appendix
Fully integrated Business Model
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Listing(stocks, bonds, funds,
asset-backed securities,
Among others )
Commodities
Certification
Trading
(stocks, derivatives, corporate and government
Bonds, funds, spot US Dollar, among others)
Central Counterparty (CCP)
Clearing and Settlement
(for all products)
Central Depository
(stocks and corporate bonds)
Securities Lending
(stocks and corporate bonds
Custody(services provided for funds
and other market
participants)
Market Data
Indices Licensing
Software Licensing
(used by brokerage
Houses and other
market participants)
OTC Derivatives
(registration and collateral
management)
Fully integrated Business ModelDiversified sources of revenues
Services for issuers, brokers and
commodities tradingTrading, Clearing and Depository Activities Others Services
31
Trading Access
(Brokers)
BM&FBOVESPA Costs
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BM&FBOVESPA CostsSeg. BOVESPA Custody
Custody - Account Maintenance
Account without movement or position BRL3.00
Account with movement or position of Equities Market assets BRL6.90
Fee on the amount in custody*
from BRL 0 to BRL 1,000,000.00 1.30 bps
from BRL 1,000,000.01 to BRL 10,000,000.00 0.72 bps
from BRL 10,000,000.01 to BRL 100,000,000.00 0.32 bps
from BRL 100,000,000.01 to BRL 1,000,000,000.00 0.25 bps
from BRL 1,000,000,000.01 to BRL 10,000,000,000.00 0.15 bps
starting from BRL 10,000,000,000.01 0.05 bps
Note:
*This fee is not charged for nonresident investors.* Fee exemption for custody positions of up to BRL300,000.00 will be maintained
32
N P d t Pi li
High Frequency Trading - HFT
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New Products Pipeline
33
High Frequency Trading HFTNew pricing policy (both segments)
Main Characteristics
Differentiated fees by tier only for day trades transactions executed by a registered HFT
A HFT Committee created to approve and monitor the HFTs
The new pricing policy was implemented in Nov10
Bovespa Segment
In the Bovespa Segment, different tiers were created for individuals and non-individuals HFT investors
BM&F Segment
In the BM&F Segment, the 70% flat discount was replaced by a volume tiered based discount, only for day trades,
divided into trading and registration fees
Individuals
ADTV tier (BRL millions)
Trading Fee
(bps)
Settlement
Fee (bps) Total
Up to 4 (inclusive) 0.70 1.80 2.50
From 4 to 12.5 (inclusive) 0.50 1.80 2.30
From 12.5 to 25
(inclusive) 0.20 1.80 2.00
From 25 to 50 (inclusive) 0.05 1.75 1.80
Above 50 0.05 1.55 1.60
Non-individuals
ADTV tier (BRL millions)
Trading Fee
(bps)
Settlement
Fee (bps) Total
Up to 20 (inclusive) 0.70 1.80 2.50
From 20 to 50 (inclusive) 0.50 1.80 2.30
From 50 to 250
(inclusive) 0.20 1.80 2.00From 250 to 500
(inclusive) 0.05 1.75 1.80
Above 500 0.05 1.55 1.60
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*Includes regular trades and public offering; updated until November 30, 2011.
Monthly Net Flow of Foreign Investments* (in BRL billions)
BOVESPA Segment: foreign investment flow
34
-4.7
1.2
-1.0
8.0
0.5
-2.9
-6.3
-2.3-1.8
-4.7
-1.2-0.4-0.6
0.5
3.43.8
6.1
4.2
5.5
2.5
5.2
9.1
2.11.4
-2.1
0.7
5.8
1.5
-1.5
-0.1
7.3
-0.6
10.0
4.4
2.1
0.70.81.7
-1.4
0.4
3.4
1.71.9
-0.4 -0.2
0.4
1.0
-2.4
Operational highlights: investor s participation in Total Volume
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BM&F Segment (Investors Participation in Total Volume)
Bovespa Segment (Investors Participation in Total Value)
g g
35
56% 51% 49% 48% 45% 42% 38% 45% 44% 42% 41% 38% 39% 35% 32% 35% 35% 36%46%
24%25% 23% 23% 24% 30% 33%
31% 31% 32% 33% 31% 31% 33% 35% 32% 34% 34%34%
12% 15% 17% 19% 20% 22% 23%19% 19% 20% 20% 24% 23% 25% 26% 27% 25% 23%
16%7% 7% 9% 8% 8% 4% 4% 4% 3% 3% 4% 4% 5% 5% 5% 5% 5% 5% 3%
2% 2% 2% 3% 3% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 1% 2%
2005 2006 2007 2008 2009 2010 2011 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11
Central Bank Companies Individuals Foreign Investors Institutional Investors Financial Institutions
25% 25% 23% 27% 31% 26% 21% 22% 22% 23% 21% 22% 21% 24% 20% 23% 20% 22% 18%
27% 27% 30% 27%26% 33%
33% 34% 33% 35% 34% 33% 33% 35% 32% 34% 33% 33% 32%
33% 36% 35% 35%34% 30% 35% 35% 34% 32% 34% 34% 35% 33% 37% 34% 36% 35% 39%
12% 10% 10% 8% 7% 8% 9% 8% 9% 8% 10% 8% 9% 8% 10% 8% 9% 8% 9%2% 2% 2% 3% 2% 2% 2% 2% 2% 2% 1% 3% 1% 1% 1% 2% 1% 2%2%
2005 2006 2007 2008 2009 2010 2011 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11
Individuals Institutional Investors Foreign Investors Financial Institutions Companies Others
Investment Funds
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Investment Funds
36
AUM Evolution (in BRL billions)
Source: ANBIMA and Investment Company Institute ICI (2Q11).
Percent of Equity Fund Assets
Worldwide Brazil
Equity
funds
39%
Equityfunds
15%
657
861 899
1,070
1,301
1,5131,375
1,7031,787
1,899
2002 2003 2004 2005 2006 2007 2008 2009 2010 Nov 11
Equities
Fixed Income
11%
10% 11%
11%
15%22%
14%
18%18% 15%
Price Earnings Estimated
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g
37Source: Bloomberg
0,600
0,650
0,700
0,750
0,800
0,850
0,900
0,950
1,000
1,050
1,100
jan-10 fev-10 mar-10 abr-10 mai-10 jun-10 jul-10 ago-10 set-10 out-10 nov-10 dez-10 jan-11 fev-11 mar-11 abr-11 mai-11 jun-11 jul-11 ago-11 set-11 out-11 nov-11 dez-11 jan-12
P/E
Ibovespa/Dow Jones Ibovespa/S&P 500
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SUSTAINABILITY
38
BM&FBOVESPA Sustainability Mission
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BM&FBOVESPAs Sustainability MissionSupport, promote and practice the concepts and actions towards economic,
social and environmental responsibility with the purpose of contributing to
sustainable development
39
BM&FBOVESPA Sustainability Mission
Novo Valor BM&FBOVESPA
Program created in 2010 to guide sustainability actions of
BVMF.Goal
Induce and promote the sustainable development of theBM&FBOVESPA and the capital market, involving all audiences,including investors, companies and brokerages.
BM&FBOVESPA Sustainability Program
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1. Natural Resources Mgt
GHG Inventory
Materials recycling program
Ecoefficiency Green IT
Member of Carbon Disclosure Project South America
Board of Empresas pelo Clima, FGV
2. Governance
Novo Mercado
Advisory Boards
Sustainability Committee
Sustainability Comission
3. Products and Services
Indexes: ISE, ICO2andIGC/IGCT
Carbon Market
Em Boa Companhia (program with companies)
4. Stakeholder Engagement
Instituto BM&FBOVESPA
Stakeholders
Global Compact Signatory(1st exchange)
PRI Signatory(Principles for Responsible Investment)
Organization Stakeholder GRI(Global ReportingInitiative); Member of Board for GRI Brazil
Working in four dimensions
40
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3Q11 EARNINGS
41
3Q11 highlights
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Financial and Operational highlights
Volumes growth (3Q11 vs. 3Q10): 15.5% higher in BM&F seg and 11.7% inBOVESPA seg
HFT hits all-time high on record: 7.8% in BM&F seg and 10.3% in BOVESPA seg
Shareholder return: 9M11 dividends and buybacks reached R$1.3 bn(~ R$0.65 per share). In 3Q11:
Dividends: R$233.6 million, 80% of 3Q11 net income
Buybacks: R$250 million (27.3 million shares)
Budgeted OPEX and CAPEX for 2011 revised down
Strategic Projects
New fee structure eliminates previous cross-subsidies, strengthenscompetitive position and aligns with international peers
Derivatives module for the new multi-asset platform (PUMA Trading System)
successful implementation of the derivatives module
Clearing integration: development of the technology infrastructure
Market making for options on single stocks: ongoing market making foroptions on four single stocks and options on IBOVESPA
Focus on cost control and return to shareholders
Net Revenues: R$494MM(3Q10: R$489MM)
(up 0.9%)
Adj Expenses.1: R$136MM (3Q10: R$146MM)(down 6.6%)
Adj Net Income.2: R$400MM (3Q10: R$389MM)
(up 2.7%)
Adj EBITDA 3: R$356MM(3Q10: R$344MM)(up 3.4%)
Adj EBITDA Margin: 72.1% (3Q10: 70.4%)
Adj EPS: R$0.205(3Q10: R$0.194)(up 5.9%)
1 Excludes stock options plan, depreciation, allowance for doubtful accounts, and tax on dividends from CME Group. 2 Excludes deferred liability recognized in correlation
with temporary differences from amortization of goodwill for tax purposes, the impact of the stock options plan and the investment in associate (CME Group) accounted forunder the equity method of accounting, net of taxes. 3 Excludes stock option plans costs .
42
2012 Budgets
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R$ millions
544
2010 2011e 2012e
590
580
590
580
2012 budget in the same range of 2011
2012 Budget: between R$580 million and R$590 million
Maintenance of headcount
Steadily effort to reduce other expenses lines
1 Adjusted Expenses exclude depreciation, stock option program, provisions and tax on dividends from CME.
gCommitment to cost control
Adjusted Operating Expenses - 2012 Budget CAPEX 2012 Budget
268
2010 2011e 2012e
210
180
260
230
2012 budget: between R$230 million and R$260 million
Continuity of IT investments
Equities segment of PUMA Trading System
New Data Center
Clearings integration
New OTC platform
Improvements in infrastructure
R$ millions
43
Adjusted Opex BudgetF t l
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Focus on expense controls
Maintenance of Adjusted Opex1 for 2012
R$ millions
544
2010 2011e 2012e
590
580
590
580
2012 budget in the same range of 2011
2012 Budget: between R$580 million and R$590 million
Maintenance of headcount
Steadily effort to reduce other expenses lines
1 Adjusted Expenses exclude depreciation, stock option program, provisions and tax on dividends from CME.44
Capex Budget
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Continuity of investments over 2012
Investments over 2011-2012 betweenR$410 million and R$470 million
R$ millions
268
2010 2011e 2012e
210
180
260
230
2012 budget: between R$230 million and R$260 million
Continuity of IT investments
Equities segment of PUMA Trading System
New Data Center
Clearings integration
New OTC platform
Improvements in infrastructure
Others
45
BOVESPA Segment Performance
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9.8 p.p.
HFT: ADTV and share of trading volume
Higher Volumes: increased market volatility and HFT activity growth
ADTV and Margin
Average market capitalization and Turnover velocity
48%
2.32.5 2.5 2.5 2.2
60.1% 61.8% 62.1% 59.7% 69.5%
-
0,5
1,0
1,5
2,0
2,5
3,0
3,5
3Q10 4Q10 1Q11 2Q11 3Q11
Average Market Capitalization (BRL tri ll ions) Turnover Velocity
87%
3Q11 Volumes
ADTV surged 11.7% over 3Q10
Greater HFTs share of overall volume
(mainly foreigners, 3Q11 volume soared
87% from 2Q11)
Market volatility positively impacted
trading volumes
5.96.8 6.7 6.2 6.6
6.16 6.11 6.02 5.86 5.71
0,00
2,00
4,00
6,00
8,00
10,00
3Q10 4Q10 1Q11 2Q11 3Q11
ADTV (R$ billions) Margin in bps
191.4 290.8 267.2319.3
181.5205.0 184.1 174.6
160.0
318.6 447.3
835.14.3%
6.1%7.4%
10.3%
532.9
814.5 898.6
1,329.1
0,0%
20,0%
40,0%
60,0%
80,0%
100,0%120,0%
140,0%
160,0%
-
0,0
0,0
0,0
0,0
0,0
0,0
0,0
Nov-Dec/10 1Q11 2Q11 3Q11
r etail - day tr ading (BRL millions) loc al institutions - d ay tr ading (BRL millions)
fgn inv - day trading (BRL millions) % of overall market
46
BM&F Segment Performance
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1,8101,7202,1271,8331,661
525543422
491481
469407317
293286
1.171.10
1.04
1.131.11
0,40
0,50
0,60
0,70
0,80
0,90
1,00
1,10
1,20
1,30
3Q112Q111Q114Q103Q10
Interest Rates in BRL FX Rates Others RPC
77 78 7791
156
84 89 88101
143
3Q10 4Q10 1Q11 2Q11 3Q11
Mini Contracts Stock Indices
4.9 42.5 17.1 9.8 24.470.5
77.367.0 101.1
148.339.337.7
43.545.3
68.282.7
93.483.6
94.8
178.7
3Q10 4Q10 1Q11 2Q11 3Q11
BRL Interest rate contracts FX contracts
Index-based contracts Mini-sized contracts
% in total ADTV
4.6% 3.9%
7.8%
5.0%5.0%251.4 251.3
197.7 211.5
420.3
Well positioned to capture growth opportunities
HFT: ADTV (thds of contracts) and share of ADTV (%) ADTV : Mini-sized and stock index (in thds of contracts)
ADTV in (thds of contracts) and RPC (in R$)
2,428 2,6162,866 2,670 2,805
67%
3Q11 Volumes
Overall ADTV up 15.5% over 3Q10
Higher volumes in BRL interest rate contracts
Record HFTs volumes, surged 67% from 2Q11
Volumes traded in mini-sized contracts and
stock index derivatives soared 71% and 41%
from 2Q11, respectively)
47
Revenues and Expenses Details
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145.8 159.0 140.6 143.7 136.3
15.1 18.9 22.3 10.1 20.75.5
9.424.5 10.1 8.5
3Q10 4Q10 1Q11 2Q11 3Q11
Adjusted Operating Expenses Depreciation Stock option Others
Consistent growth of other revenues and focus on costs controls
Revenues Breakdown 3Q11
Trd. /Sttmnt
Bovespa
seg.
Trd. /Sttmnt
BM&F seg.
Other
revenues 17%
45%38%
38%
Expenses Breakdown 3Q11
R$ millions 3Q11 3Q10Change %
3Q11 x 3Q10
Gross Operating Revenues 547.1 544.1 0.6%
BOVESPA Seg. (trd. and sttmnt.) 248.6 274.8 -9.5%
Fees from trading and sttmnt. transactions 244.9 232.9 5.2%
Other (including public offering sttmnt.) 3.7 41.9 -91.1%
BM&F Seg. (trd. and sttmnt) 205.2 186.8 9.9%
Other operating revenues: 93.3 82.5 13.1%
Depositary and custody 22.9 21.4 6.6%
Securities Lending 19.8 12.7 56.1%
Market data sales 16.2 15.4 5.7%
Listings 11.2 10.9 2.6%
Other 23.1 22.0 5.0%
167.6188.7 188.7
166.8
Costs Control
Projects re- prioritization
Personnel
Data
processing
Depr./ Am.
Third Party
Serv.
Marketing
Other
48%
14%
15%
12%
7%
4%
169.6
(In R$ millions)
48
Depreciation & Personnel Expenses
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15.118.9
15.5
10.1
20.7
6.8
6.8
3Q10 4Q10 1Q11 2Q11 3Q11
66.280.9 72.9 78.0 72.4
5.5
9.4 24.5 10.18.5
3Q10 4Q10 1Q11 2Q11 3Q11
Adj. Personnel Stock Options
22.3
Focus on cost control and improvements in processes
3Q11 vs. 3Q10: up 12.9%
Annual bargain with union of around 7% 15% increase in average headcount (mainly in IT and
business development, in line with growth strategy)
There was no headcount increase over 2011
3Q11 vs. 2Q11: 8.2% lower
Advances in the allocation of personnel expenses relatedto projects increased the amount capitalized in 3Q11 to
R$8.4MM (R$5.5MM in 1Q11 and R$5MM in 2Q11); inaddition to reversal of R$3.2MM recorded over 1H11
Reduction in Profit sharing provisions of aroundR$2.9MM due mainly to market conditions
(In R$ millions)
Depreciation
Personnel Expenses
(In R$ millions)
3Q11 vs. 3Q10: up 37.3%
Growth resulting from higher CAPEX in 2010/11
3Q11 vs. 2Q11: up 104.8%
Due to improvements in projects accounting processes(R$6.8MM reversion reduced 2Q11 depreciationexpenses)
81.071.7
90.397.5
88.2
49
Financial Highlights
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959
1,270
496
468
269
284
1,712
1,487
4Q10
3Q11
Market participants cash collateral and others*Restricted fundsSubsidiaries**Available funds
1Q112Q11
3Q119M11
227.7
106.1250.4
584.2
216.6 235.3233.6
685.5BuyBack Payout
3,508
3,435
*Includes collaterals pledged by participants in the form of cash, receivables and rights in securities under custody , as well as payouts still undisbursed
** Includes third party collaterals (R$142 million in the 4Q10 and R$119 million in the 3Q11) and restricted funds (R$11 million in the 4Q10 and in the 3Q11) at Banco BM&F
R$82.7 million in 3Q11: up 10.3% over 3Q10
Financial Income: R$102.0 million, a 9.9% increaseover 3Q10, due to higher average interest rates paidon interest-earning investments
Financial Expenses: R$19.4 million, compared toR$17.9 million in the 3Q10, due mainly to the debt
interest
Shareholder Returns (Payouts and Buyback Program)Investments (CAPEX) 9M11: R$115MM
Cash and Financial Investments Financial Income
Commitment to shareholder returns
(in R$ millions) (in R$ millions)
R$1,269.7
~R$0.65 per share
29
44 42
1Q11 2Q11 3Q11
(in R$ millions)
50
Strategic Projects
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Multi-asset trading platform (PUMA Trading System):
State of the art in trading technology and technological independency
Derivates module successfully implemented in 2H11
Equities market to be concluded in 2H12
Improvement to Fee Structure
Strengthening the competitive position, eliminating cross-subsidies and aligning with internationalpeers
Delivered: i) HFT discount policies in 2010; ii) rebalancing of trading and post-trading fees in 2011
Growth initiatives and business model strengthening
Market Making for Options on Single Stocks: 4 stocks and Ibov index already launched
Index cross listing arrangements with the CME Group and BRICS countries 'exchanges
ETFs: two new ETFs recently launched (totaling 10) growth in trading volumes
OTC: development of a new platform (contract signed with Calypso)
Integration of the four BM&FBOVESPA Clearinghouses efficiency and competitive advantage
Pos trading at the beneficial owner level unique model among the major international markets.
Contract signed with Cinnober for new clearing system
The project development will occur throughout 2012. Integrated market testing and the start of
implementation of the new system in production are forecasted to occur in 2013
51
Delivering Strategic Priorities
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g g
Capture macro growth opportunities
Despite challenging short-term macro conditions, the Braziliancapital markets offer good opportunities from which BVMF canbenefit in the long term
Consistently increasingrevenues and net income
New trading System : PUMA Trading System (State of the art in
IT): Derivatives module implemented Increasing capital efficiency by integrating clearing facilities
Rebalancing the fee structure for trading and post trade activities first stage completed; further studies ongoing
Strengthening
competitive position
Establish a diversified product mix as a driver of long term growth
Partnership with CME delivers innovation
New Products: market makers, cross listing, ETFs and HFT
Investing in products andpartnerships
Focus on OpEx Control 2011 Opex Budget revised down
Maximizing shareholder returns: high return combining payoutsand stock buybacks
Consistently deliveringsound financial results
52
Income Statement Summary
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R$ millions 3Q11 3Q10Change
3Q11 / 3Q102Q11
Change
3Q11/2Q11
Operating Revenues Gross 547.1 544.1 0.6% 521.3 5.0%
Net Operating Revenues 493.7 489.3 0.9% 467.6 5.6%
Operating Expenses (169.6) (167.6) 1.2% (166.8) 1.7%
Operating Income 324.1 321.8 0.7% 300.9 7.7%
Equity accounting 28.3 23.1 22.3% 22.1 28.1%
Financial Income 82.7 74.9 10.3% 70.8 16.7%
Income before Taxes 435.1 419.9 3.6% 393.8 10.5%
Net Income* 292.0 293.0 -0.3% 294.2 -0.7%
EBITDA 347.5 338.9 2.5% 313.2 10.9%
EBITDA Margin 70.4% 69.2% 113 bps 67.0% 340 bps
Adjusted Net Income 399.6 389.0 2.7% 409.2 -2.3%
Adjusted earnings per share (in R$) 0.205459 0.194071 5.9% 0.208948 -1.7%
Adjusted EBITDA 356.0 344.3 3.4% 323.3 10.1%
Adjusted EBITDA Margin 72.1% 70.4% 174 bps 69.1% 297 bps
Adjusted Operating Expenses (136.3) (145.8) -6.6% (143.7) -5.2%
y
* Attributable to BM&FBOVESPAs Shareholders
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Reconciliation of GAAP to Adjusted Net Income
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R$ millions 3Q11 3Q10Change
3Q11 / 3Q102Q11
Change
3Q11/2Q11
Gaap net income* 292.0 293.0 -0.3% 294.2 -0.7%
(+) Stock options program 8.5 5.5 55.6% 10.1 -15.7%
(+) Deferred tax liabilities 124.7 111.6 11.7% 124.7 -
(-) Equity accounting (net of taxes) 25.7 21.1 21.4% 19.9 29.2%
Adjusted net income 399.6 389.0 2.7% 409.2 -2.3%
292.0(25.7) 399.6
8.5124.7
Gaap net income Stock options Deferred liability Equity Accounting Adjusted net
income
j
3Q11 GAAP and adjusted net income reconciliation
*Attributable to BM&FBOVESPA shareholders
(in R$ millions)
54
Deferred Tax Liabilities Accounting
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124124,7 124,7
-13 -26
+18
1Q11 2Q11 3Q11
Deferred tax liabilities Deferred tax credits
111 99142
(in R$ millions)
No impact on cash flow
Deffered income tax
and social contribution
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Reconciliation of Adjusted Operating Expenses
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R$ millions 3Q11 3Q10Change
3Q11 / 3Q102Q11
Change
3Q11/2Q11
Total Expenses 169.6 167.6 1.2% 166.8 1.7%
(-) Depreciation 20.7 15.1 37.3% 10.1 104.8%
(-) Stock options plan 8.5 5.5 55.6% 10.1 -15.7%
(-) Tax related to CME dividends 2.6 2.0 31.9% 2.2 18.1%
(-) Provision for doubtful account 1.4 0.8 -266.7% 0.6 146.4%
Adjusted Expenses 136.3 145.8 -6.6% 143.7 -5.2%
j p g p
56
Balance SheetIn R$ millions
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ASSETS 09/30/2011 12/31/2010 LIABILITIES AND SH. EQUITY 09/30/2011 12/31/2010
Current assets 2,198.4 2,547.6 Current liabilities 1,605.2 1,416.2
Cash and cash equivalents 139.5 104.0 Collateral for transactions 1,222.3 954.6
Financial investments 1,861.8 2,264.4 Others 382.9 461.6
Others 197.1 179.2 Non-current liabilities 2,254.0 1,798.7
Non-current assets 20,946.6 20,086.4 Financing 1,125.4 1,010.1
Long-term receivables 1,683.6 1,216.8 Deferred Inc. Tax and Social Contrib. 1,061.4 732.1
Financial investments 1,506.8 1,066.9 Others 67.2 56.6
Others 176.8 149.9
Investments 2,618.0 2,286.5 Shareholders' equity 19,285.8 19,419.0
Property and equipment 352.4
367.1
Capital 2,540.2 2,540.2
Capital reserve 16,679.7 16,662.5
Intangible assets 16,292.7 16,215.9 Others 49.4 200.0
Minority interest in subsidiaries 16.4 16.3
TOTAL ASSETS23,145.0 22,634.0
TOTAL LIAB. AND SHAREHOLDERS'
EQUITY 23,145.0 22,634.0
In R$ millions
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