B3 SA - Brasil, Bolsa, Balcao · BMFBOVESPA:B3SA3
B3 SA - Brasil, Bolsa, Balcao — B3 S.A. - Brasil, Bolsa, Balcão — Q2 2019 Earnings Presentation
15 slides from B3 SA - Brasil, Bolsa, Balcao's earnings presentation, Aug 9, 2019
Slide 1: 2Q19 Earnings Presentation
2Q19 EARNINGS PRESENTATION August 9th, 2019 PUBLIC PUBLICINFORMATION INFORMATION 1 1 1
Slide 2: Forward looking statements
Forward looking statements This presentation may contain certain statements that express the management’s 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
Slide 3: 2Q19 highlights
2Q19 highlights 2Q19 / 2Q18 Highlights R$ millions 2Q19 (%) Volumes Total revenue 1,579.9 14.0% - ADTV of R$14.7 billion in the cash equities market Listed 1,016.8 18.2% - ADV of 3.9 million contracts in the listed FICC market OTC 218.6 -8.5% Expansion of individual investor base - 1.1 million of in
Slide 4: Strong local capital market activity
Strong local capital market activity (R$ billions)1 Increased relevance of local capital markets in financing Brazilian companies ▪ Decrease in interest rates in Brazil 230 11 208 ▪ Investors seeking for greater diversification in 207 investments 40 154 53 ▪ Decrease in the amount of disbursement by
Slide 5: Performance by segment: Listed – equities
Performance by segment Listed – equities (40.3% of total B3 revenues) Revenue (R$ millions) Performance (vs 2Q18): +25.6% ▪ Increase of 22.1% in the ADTV ▪ Growth of 15.7% in the average market capitalization ▪ Turnover velocity of 95.2% (89.0% in 2Q18) ▪ Increase of 109.4% in the ADV of Stock Indic
Slide 6: Performance by segment: Listed – FICC
Performance by segment (cont.) Listed – FICC (24.0% of total B3 revenues) Revenue (R$ millions) Performance (vs 2Q18): +7.6% ▪ Interest rates in BRL ▪ Growth in the ADV concentrated in options; negative impact on RPC, given that options have lower RPC than average ▪ FX related contracts ▪ Positive i
Slide 7: Performance by segment: OTC
Performance by segment (cont.) OTC (13.8% of total B3 revenues) Revenue (R$ millions) Performance (vs 2Q18): -8.5% ▪ Fixed Income ▪ Growth in the volume of bank funding instruments ▪ Increase in issuances of corporate debt offset by redemption of debentures issued by leasing companies¹ ▪ Incentives
Slide 8: Performance by segment: Infrastructure for financing
Performance by segment (cont.) Infrastructure for financing (10.3% of total B3 revenues) Revenue (R$ millions) Performance (vs 2Q18): +35.8% ▪ National Liens System (SNG) ▪ 11.0% growth in the number of financed vehicles ▪ Contracts System ▪ Interruption in Paraná state in Oct’18 ▪ Services resumed
Slide 9: Performance by segment: Technology, data and services
Performance by segment (cont.) Technology, data and services (11.5% of total B3 revenues) Revenue (R$ millions) Performance (vs 2Q18): +8.7% ▪ Technology and access ▪ Increase in the number of clients in the OTC segment (entry of credit unions) ▪ Data and analytics ▪ Positive impact from the appreci
Slide 10: Expansion of the individual investor base
Expansion of the individual investor base Diversification and sophistication of investments of individual investors ▪ Low interest rates environment ▪ Brokerage firms working in prospecting and educating clients ▪ B3's role in financial education and incentives B3 Incentive Programs ✓ Recognize and
Slide 11: Adjusted expenses
Adjusted expenses1 (R$ millions) 4.7 0.6 6.8 0.6 Third-party Others³ Adjusted personnel² Data processing: (+60.1%): increase (+1.8%) (+3.1%): (+1.4%): mainly impacted by due to expenses the annual collective with projects bargaining 249.9 237.2 agreement +5.3% Adj. exp 2Q18 Adj. Data processing Thir
Slide 12: Financial highlights
Financial highlights Cash and Financial Investments (R$ millions) Financial Leverage and Debt Schedule Financial Leverage (R$ millions) 2Q19 3,318 598 2,720 10,892 7,574 (in R$ millions) 2Q19 Gross debt 5,485 Recurring EBITDA (LTM) 3,655 1Q19 3,591 723 2,868 9,350 5,759 Financial leverage 1.5x Debt
Slide 13: Appendix
Appendix PUBLIC PUBLICINFORMATION INFORMATION 13 13 13
Slide 14: Financial Statements
Financial Statements Adjusted expenses reconciliation (R$ million) 2Q19/2Q18 2Q19/1Q19 1H19/1H18 Adjustments to expenses 2Q19 2Q18 1Q19 1H19 1H18 (%) (%) (%) Expenses (679.5) (531.6) 27.8% (665.0) 2.2% (1,344.5) (1,134.4) 18.5% (+) Depreciation and amortization 257.6 237.2 8.6% 257.6 0.0% 515.1 473.
Slide 15: Financial Statements
Financial Statements Net income reconciliation (R$ million) 2Q19/2Q18 2Q19/1Q19 1H19/1H18 2Q19 2Q18 1Q19 1H19 1H18 (%) (%) (%) Net income (attributable to shareholders) 654.8 724.4 -9.6% 606.2 8.0% 1,261.0 1,039.2 21.3% (+) Expenses related to the combination with Cetip - 9.9 - - - - 19.8 - (+) Amor
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