B3 SA - Brasil, Bolsa, Balcao · BMFBOVESPA:B3SA3
B3 SA - Brasil, Bolsa, Balcao — B3 S.A. - Brasil, Bolsa, Balcão — Q3 2019 Earnings Presentation
15 slides from B3 SA - Brasil, Bolsa, Balcao's earnings presentation, Nov 8, 2019
Slide 1: 3Q19 Earnings Presentation
3Q19 EARNINGS PRESENTATION November 8th, 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: 3Q19 Highlights
3Q19 Highlights 3Q19 / 3Q18 Highlights R$ millions 3Q19 (%) Total revenue 1,706.6 34.1% All-time high volume in the listed segment - ADTV of R$17.1 billion in the cash equities market Listed 1,136.5 58.1% - ADV of 4.0 million contracts in the listed FICC market OTC 240.2 -4.1% Infrastructure for fin
Slide 4: Increased relevance of capital markets instruments in funds' portfolios
Increased relevance of capital markets instruments in funds’ portfolios AUM per asset class (mutual funds) (R$ billions) Exposure to capital market products increased by 34% (~R$200bn) since YE18 ▪ Unprecedented low interest level in Brazil leading investors to seek higher diversification in their p
Slide 5: Performance by segment: Listed – equities
Performance by segment Listed – equities (43.1% of total B3 revenues) Revenue (R$ millions) Performance (vs 3Q18): +73.1% ▪ Cash equities ▪ ADTV increased 78.9% ▪ Lower margins reflecting volume-linked discounts and greater participation of local institutional investors ▪ ADV of Stock indices future
Slide 6: Performance by segment: Listed – FICC
Performance by segment (cont.) Listed – FICC (23.5% of total B3 revenues) Revenue (R$ millions) Performance (vs 3Q18): +36.4% ▪ Interest rates in BRL ▪ Growth in the ADV partially offset by lower RPC (concentration in short-term contracts, which have lower RPC than average) ▪ FX related contracts1 ▪
Slide 7: Performance by segment: OTC
Performance by segment (cont.) OTC (14.1% of total B3 revenues) Revenue (R$ millions) Performance (vs 3Q18): -4.1% ▪ Fixed Income ▪ Treasury Direct: revenue net of rebates of R$7.2 million in 3Q19 vs R$28.8 million in 3Q18 (incentives for brokerage firms of R$33.4 million in 3Q19 vs R$5.2 million in
Slide 8: Performance by segment: Infrastructure for financing
Performance by segment (cont.) Infrastructure for financing (8.1% of total B3 revenues) Revenue (R$ millions) Performance (vs 3Q18): +4.6% ▪ National Liens System (SNG) ▪ 14.5% growth in the number of financed vehicles ▪ Contracts System ▪ Interruption of services in Paraná state in Oct’18 ▪ New mod
Slide 9: Performance by segment: Technology, data and services
Performance by segment (cont.) Technology, data and services (11.3% of total B3 revenues) Revenue (R$ millions) Performance (vs 3Q18): +12.3% ▪ Technology and access ▪ Increase in the number of clients in the OTC segment and addition of BLK revenues ▪ Data and analytics ▪ Positive impact from the ap
Slide 10: Adjusted expenses
Adjusted expenses1 (R$ millions) Third-party services Others³ Data processing: (-1.0%) (+14.1%) Adjusted personnel² (+43.1%): (+5.0%): investments in mainly impacted by infrastructure, the annual collective processes, bargaining agreement functionalities and and acquisition of controls of IT Portal
Slide 11: Financial highlights
Financial highlights Cash and Financial Investments1 (R$ millions) Financial Leverage and Debt Schedule Debt Amortization Schedule (R$ billions) and Financial Leverage5 3Q19 11,665 2Q19 10,880 1.4x LTM 3Q18 8,911 EBITDA Third-party Total Restricted and unrestricted 2 3 4 B3’s cash supports clearing
Slide 12: Financial highlights: cash generation and destination
Financial highlights Cash generation Cash destination – 9M19 (R$ millions) R$ millions 9M19 9M18 Adjusted net cash from operating 3,606 3,043 activities¹ Net cash from investment (2) (71) activities² Net cash from financing activities 972 (297) before distributions³ Cash generation (before distribut
Slide 13: Appendix
Appendix PUBLIC PUBLICINFORMATION INFORMATION 13 13 13
Slide 14: Financial Statements
Financial Statements Adjusted expenses reconciliation (R$ million) 3Q19/3Q18 3Q19/2Q19 9M19/9M18 3Q19 3Q18 2Q19 9M19 9M18 (%) (%) (%) Expenses (677.7) (642.0) 5.5% (679.5) -0.3% (2,022.2) (1,776.4) 13.8% (+) Depreciation and amortization 257.3 236.4 8.8% 257.6 -0.1% 772.4 709.7 8.8% (+) Long term st
Slide 15: Financial Statements
Financial Statements Net income reconciliation (R$ million) 3Q19/3Q18 3Q19/2Q19 9M19/9M18 3Q19 3Q18 2Q19 9M19 9M18 (%) (%) (%) Net income (attributable to shareholders) 719.8 465.4 54.7% 654.8 9.9% 1,980.8 1,504.5 31.7% (+) Expenses related to the combination with Cetip - 13.0 - - - - 32.8 - (+) Non
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