Bolsa De Valores De Colombia S.a. · BVC:BVC

Bolsa De Valores De Colombia — Investor Presentation (September 2014)

32 slides from Bolsa De Valores De Colombia's investor presentation, September 2014

  1. Slide 1: BVC Corporate Presentation

    BVC Corporate Presentation Investor Relations Office 1

  2. Slide 2: Disclaimer

    Disclaimer: The views expressed in this presentation not necessarily reflect the institutional view of the Colombian Securities Exchange (BVC for its acronym in Spanish). The information contained herein is only accurate as of the date thereof, may be updated, supplemented, amended or otherwise alte

  3. Slide 3: Bolsa de Valores de Colombia - BVC agenda

     BOLSA DE VALORES DE COLOMBIA - BVC  Evolution  Business Model Corporate Governance  Colombian Capital Markets Opportunities  BVC Financial Highlights 3

  4. Slide 4: BVC Evolution

    BVC Evolution BVC is established as the result of the merger of the pre-existing Exchanges in BVC became New trading Colombia a publicly platform: (Bogota, Medellin listed Nasdaq OMX and Occidente). company X-tream 1920 – 2000: 2001 - 2006: 2008: 2010: 2001: 2007: 2009: 80 Years of BVC’s Launching o

  5. Slide 5: BVC Group

    BVC Group: Thorough strategic investments BVC is a key participant throughout all the infrastructure of Colombia’s capital markets. SUBSIDIARIES LONG TERM INVESTMENTS Manages, settles, clears and custody the securities traded at BVC, and also 22,98% manages corporate events (dividends, shareholders’

  6. Slide 6: Business Model

    Business Model: BVC is a multi-product Exchange with presence in all the value chain of the Colombian capital market EQUITIES FIXED MARKET DERIVATIVES CURRENCIES INCOME TRADING OTC / SEN OTC OTC CLEARING SEN CRCC (1) SETTLEMENT BR d BR DCV BR BR CUSTODY DCV BR: Banco de la República SEN: Colombian C

  7. Slide 7: BVC Products & Services

    BVC Products & Services BVC works together with its clients in the development of innovative market products that complement the market liquidity MARKET EQUITIES FIXED LISTING DERIVATIVES CURRENCIES DATA & INCOME SERVICES ACCESS NASDAQ OMX MEC PLUS NASDAQ OMX Electronic Trading Trading Trading Tradi

  8. Slide 8: Corporate Governance

    Corporate Governance: The Board of Directors fulfills the highest standards of Corporate Governance in Colombia; more than 50% of its members are independent. Board of Directors: Executives Officers: Independent Members: 1. Sergio Clavijo – ANIF 2. Julian Dominguez – CONFECAMARAS 3. Carlos Jaimes –

  9. Slide 9: Ownership Structure

    Ownership Structure: Large shareholders base Shareholder’s Distribution RETAIL INVESTORS BVC Stock: UNIVERSITIES 8% LOCAL 7% INVESTMENT PENSION FUNDS  Listed since June 2007. FUNDS 3% 20%  Free Float: 85%  Shares outstanding: 18.672.822.217  Ownership Restriction: 10 % REAL SECTOR shareholding r

  10. Slide 10: Strategy 2014

    Strategy 2014 Market Quality Internationalization Infrastructure • Regulatory Agenda: • COLOMBIA INSIDE OUT: •Custodians: set up and • Stock issuances: London & New York initiation of the scheme for implementation of greenshoe Featuring CEOs of main equities and fixed income mechanism and adjustment

  11. Slide 11: Bolsa de Valores de Colombia - BVC agenda

     BOLSA DE VALORES DE COLOMBIA – BVC  Evolution  Business Model Corporate Governance  Colombian Capital Markets Opportunities  BVC Financial Highlights 11

  12. Slide 12: Colombian Macroeconomic Indicators

    Colombian Macroeconomic Indicators Colombian Inflation %  One digit Inflation since 1999. 7,67  The inflation rate as of July 2014 is 2,73% 5,50 5,69 4,85 4,48 3,73 3,17 2,73 2,44 2,00 1,94 Colombian GDP 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014* 8% 6,9% 7% 6,4% 6% 6,7% 6,6% 4,7% 5% 5

  13. Slide 13: Colombian Macroeconomic Indicators

    Colombian Macroeconomic Indicators AUM Pension Funds (USD Billions) 88  Sustained growth of the 90 84 85 Colombian pension funds. 80 70 66  Multi-fund Scheme since 2010 60 CAGR: 25% 54  More than 11 Million affiliates 50 39 40 30 25 26 15 19 20 11 10 7 0 Central Bank Intervention Rate % 2003 2004

  14. Slide 14: Colombian Macroeconomic Indicators

    Colombian Macroeconomic Indicators Foreign Investment (USD Billions) 4,7  The foreign investment in portfolio 3,3 2,6 has grown 49% annually since 2010 8,3  The FDI has grown 17% annually 2,3 since 2010 16,7 16,8 15,0 9,5 9,4 2010 2011 2012 2013 2014* FDI PORTFOLIO  Colombia has investment grade

  15. Slide 15: Capital Markets Evolution

    Capital Markets Evolution Total Markets (USD billions) 1.455 CAGR 03-13: 18%  At the end of 2013 the traded 1.299 1.220 volume at BVC closed in USD 1.102 1.115 1.102 billion.  The Colombian Market has grown 932 18% annually since 2003 770 760  The ADTV as of July 2014 is 606 578 USD$4,04 billion

  16. Slide 16: Capital Markets Evolution

    Capital Markets Evolution Fixed Income (USD billions) Holders Distribution on Gov Bonds (TES) Fixed Income Real Sector Mutual Funds 0,4% 1.142 3,6% CAGR 03-13: 19% Brokers Foreingers 1.010 12,5% 0,2% 917 840 811 Individuals 756 0,1% Balance as of Pension Funds Public sector 546 30,8% July 2014 27,2%

  17. Slide 17: Capital Markets Evolution

    Capital Markets Evolution Equity Market (USD billions) Vol. Distribution Equity Market* 40 ADR 37 4% Others 2% Mutual Retail Funds Investors 7% 28 17% CAGR 03-13: 41% 26 As of Brokerage July 2014 Foreign Firms USD$15 Investors 19 17 18 19% billion 26% 16 15 Real Pension 10 Sector Funds 13% 12% 2 1 M

  18. Slide 18: Capital Markets Evolution

    Capital Markets Evolution Derivatives and FX Market (USD billions) Derivatives Market Vol. Distribution per Future 47 45 Gov Bonds Futures 68% CAGR 03-13: 43% 36 As of Jul 2014 28 USD$25 25 billion 21 14 Stocks 8 FX Futures 2 2 2 Futures 1 30% 2% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 201

  19. Slide 19: Capital Market's Contribution to the Country's Development

    Capital Market´s Contribution to the Country´s Development 2010-2014* (USD billions) 2010 2011 2012 2013 2014* TOTAL Equity Equity: Equity: Equity: Equity: Equity: 12,8 0,3 7,0 2,2 0,8 2,5 Fixed Income: Fixed Fixed Fixed Fixed Fixed 25,1 Income: Income: Income: Income: Income: 7,2 4,8 5,6 4,9 2,6 To

  20. Slide 20: Equity Market Issuances

    Equity Market Issuances (USD Billions) IPOs and Secondary Offerings 2010 2011 2012 2013 2014 Total Allocated Demand Total Allocated Demand USD 0,22 13,2 times USD 1,87 1 time USD 0,05 12,7 times USD 0,62 1 time USD 0,27 5,9times USD 0,09 2 times USD 1,12 1,5 times USD 0,10 1 time USD 0,28 17,2 times

  21. Slide 21: Fixed Income Issuances

    Fixed Income Issuances (USD Billions) Corporate Debt Issuances 2008 – 2014* As of July 7,2 2014 the 6,6 corporate debt have issued 5,7 USD$2,6 Amount Allocated (USD billions) billion 5,0 4,8 8 years is the 2,9 average 2,6 maturity in as of July2014 As of Jul 2014 2008 2009 2010 2011 2012 2013 2014*

  22. Slide 22: Recent Market Developments

    Recent Market Developments Colombian IR Issuers Recognition Issuers Guide Initiative to promote the adoption of best practices in information disclosure and investor relations amongst issuers. Main goals  Today 29 issuers have enrolled in the initiative and fulfilled the requirements.  Investors c

  23. Slide 23: New Indices Family

    New Indices Family Benefits: Fixed Equity Money Income • It opens up new Market Market Market opportunities to develop more tools like ETFs COLTES COLEQTY COLIBR • Portfolio Diversification. long term • Better information to track COLTES market performance. COLCAP short term • More possibilities to

  24. Slide 24: Integrated Market of Latin America - MILA

    INTEGRATED MARKET OF LATIN AMERICA - MILA: MILA’s VIRTUOUS CYCLE:  Promote liquidity in the three markets  Higher opportunities of diversification  New product development MORE LIQUIDITY  Streamlined access to MILA  Economies of scale  Regional Trading MORE INTL MORE  Regulatory Changes CAPIT

  25. Slide 25: MILA in Figures

    MILA in Figures: With the entrance of Mexico MILA will have similar size of the Brazilian market. •Market cap (US $1.092 Billion) • Higher number of issuers (647) •Traded volume on equity (US $127 Billion) Colombia Chile Peru Mexico MILA Brazil 2014* MILA BVC BCS BVL BMV + Mex BOVESPA Market Cap 223

  26. Slide 26: MILA: Benefits for Non-Regional Investors

    MILA: BENEFITS FOR NON-REGIONAL INVESTORS •Single access point and single account opening to trade in MILA. •Transactions in local currencies (Colombian pesos / Peruvian soles / Chilean pesos / Mexican pesos). •Four different economies, systemic risk reduced •Public Offerings: Now Available through

  27. Slide 27: Bolsa de Valores de Colombia - BVC agenda

     BOLSA DE VALORES DE COLOMBIA - BVC  Evolution  Business Model Corporate Governance  Colombian Capital Markets Opportunities  BVC Financial Highlights 27

  28. Slide 28: BVC Group (2Q14 COP Billions)

    BVC Group (2Q14 COP Billions) Revenues Diversification Revenues $43.608 EBITDA Margin 43% LONG TERM SUBSIDIARIES INVESTMENTS 22,98% Revenues $35.714 EBITDA CSD 61.1% FX Trading Securities Pricing Energy Commodity Margin Company Provider Derivatives Company Revenues $4.378 50% 100% 50% 27,64% EBITDA

  29. Slide 29: BVC Financial Highlights

    BVC Financial Highlights (Consolidated in COP Billions) CAGR 09- 2009 2010 2011 2012 2013 YTD2Q14 13 Revenues 58.660 66.079 73.642 81.906 82.970 43.608 9% Operating Profits 18.183 28.663 27.368 34.755 29.895 17.133 13% EBITDA* 27.061 32.393 32.316 42.315 35.255 8.567 7% Net Profit 18.452 23.944 28.3

  30. Slide 30: Revenues and Expenses Breakdown

    Revenues and Expenses Breakdown Revenues Breakdown 2Q14 Expenses Breakdown 2Q14 6,4% 1,6% 37,9% Total Revenues 21,1% COP$43.608 41,0% Billion Total Expenses COP$23.692 52,9% Billion 11,3% 21,7% 6,1% Trading & OTC Services: 37,9% • Equity Market: 21,8% • Fixed Income: 12,8% • Derivatives 3,7% Employe

  31. Slide 31: BVC's Growth Evolution

    BVC´s Growth Evolution (Consolidated) OPERATING REVENUES CAGR: 9% EBITDA CAGR: 7% (COP Billions) (COP Billions) 81.906 82.970 42.315 73.642 66.079 35.255 32.393 32.316 58.660 27.061 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 Div. Yield Dividends per Share (COP) 6,3% 1,52 5,7% 1,42 1,42 4,8% 0

  32. Slide 32: Thank You

    Thank You For more information please contact: Carlos Barrios Director of Investor Relations Office & Corporate Affairs. Bolsa de Valores de Colombia Tel. (+57 1) 3139800 Ext. 1167 Email: cbarrios@bvc.com.co 32

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