Bolsas y Mercados Argentinos S A : BYMA announces results for 3Q24

About this update from Bolsas Y Mercados Argentinos Sa

BYMA announces results for 3Q24 . Buenos Aires, Argentina, November 7 th , 2024. - Bolsas y Mercados Argentinos S.A. (BYMA: BYMA) reported today financial results for the period of three months ended September 30 th , 2024 (3Q24). In compliance with IAS 29, BYMA presented its results adjusted for inflation. The financial statements are all expressed in inflation adjusted figures as of September 2024. These include both the figures for 2024 as well as those for 2023. The numbers presented herein are mostly historical figures. Those that are adjusted for inflation are clarified in each case. 1 Summary of Financial Statements July-September 2024 (3Q24) MAIN BUSINESS RESULTS Business revenues maintained their growth in real terms: Exchange revenues adjusted for inflation were up by 25% YoY, while those of the Depositary rose 16%, resulting in revenues growing in real terms by 22% against 3Q23. Regarding total expenditures, measured in real terms, they grew 15% YoY. Other operating income fell versus the same quarter of last year by 19% in real terms due to a drop in rates both locally and abroad. The dissimilar evolution in the quarter of inflation (CPI: 12.2%) and the official exchange rate (A3500: 6.5%), implied an inflation adjustment cost that surpassed our financial result. All of the above led to an inflation adjusted net result of ARS 9.704 million for the quarter. In historical terms (current prices), net result for the quarter was income of ARS 46.837 million, a result that was 44% above similar period for previous year. Total expenditures (current prices) were 234%, 21 pp above the accumulated inflation rate between 3Q23 and 3Q24, due to expenses related to higher levels of activity and increases in depreciations and amortizations. LTM EBITDA margin was matched at the all-time high of 73%. 2 BYMA - 3Q24 Results ARS Million Historical Adjusted by Inflation 3Q23 3Q24 Var. 3Q23 3Q24 Var. CSD Revenues 2,676 9,983 273% 9,063 10,518 16% Exchange Revenues 5,254 21,984 318% 18,159 22,788 25% Income 7,930 31,967 303% 27,222 33,307 22% Total Expenses -3,000 -10,917 264% -11,945 -13,708 15% Gross Margin 4,930 21,050 327% 15,277 19,599 28% Other Operating Income 5,325 9,530 79% 17,536 9,671 -45% Net Operatig Result 10,256 30,579 198% 32,812 29,270 -11% Inflation Adjustment Impact 0 0 0% -95,106 -38,966 -59% Financial Income 23,927 31,927 33% 87,545 32,913 -62% Oher gains/losses 198 254 28% 248 65 -74% Participation in other companies 176 384 118% 612 384 -37% EBT 34,481 63,144 83% 26,112 23,665 -9% Income Tax -1,843 -16,307 785% -13,611 -13,961 N/A Net Income 32,638 46,837 44% 12,500 9,704 -22% CSD ANS EXCHANGE HIGHLIGHTS Assets under Custody (AuC, quarterly average), measured at face value, grew 458% since 3Q23 and 78% versus the previous quarter. This was explained by the issuance of Treasury bills (Lecap) after the new stance of monetary policy implemented by the national government, which had been anticipated in last quarter announcement. Measured at market prices, AuC grew by 288% YoY and rose 13% from the previous quarter. Regarding the Exchange, business volumes maintained a healthy growth. Total ADTV for the quarter reached an all-time high of ARS 7.4 trillion (ARS 7,400 thousand millions), almost five times the figure of 3Q23 and 28% higher than in the 2Q24. It is worth highlighting the 376% YoY increase of fixed income ADTV, where both the Guaranteed (PPT) and Non-Guaranteed (SENEBI) segments observed significant increases. On Exchange Repos ADTV also showed a remarkable performance, rising 401% YoY. 3 Assets under Custody (AuC) and ADTV BYMA 3Q23 3Q24 3Q24/3Q23 Assets under Custody (AuC) Face Value (Quarterly Avg, in billions) 5,083 28,356 458% Market Value (Quearterly Avg, ARS billion) 36,683 142,336 288% ADTV (ARS Million) TOTAL 1,548,777 7,425,079 379% Fixed Income 1,028,100 4,892,244 376% Guaranteed Segment 393,944 1,569,905 299% Non-Guaranteed Segment 634,156 3,322,339 424% Equity 28,296 92,614 227% On Exchange Repo 484,770 2,429,812 401% OPERATING REVENUES (historical values) CSD revenues added up to ARS 9,983 million, 273% more than in 3Q23, resulting in another quarter with positive YoY real growth. The two main revenue lines of the Depositary showed YoY increases both in nominal and inflation adjusted terms. As in the previous quarter, it is worth highlighting the growth of revenues from Additional Services, characterized by its value-added services, related to international activities of domestic clients. With regards to the Exchange business, its revenues (ARS 21,984 million), 318% above 3Q23. Equity trading remained the main revenue source of the Exchange with 37% of the total, followed by fixed income with 34%. Regarding market data, the revenue line was significantly up YoY. The sharp increase in business level has been demanding constant improvements and upgrades both in hardware and software (more on this in the following paragraphs) - 4 Operating Income: CSD and Exchange BYMA ( ARS Millions) 3Q23 3Q24 3Q24/3Q23 Total Revenue 7,930 31,967 303% CSD 2,676 9,983 273% ADC Services 1,872 6,101 226% ARyP Services 48 107 125% Additional services 756 3,775 399% EXCHANGE 5,254 21,984 318% Operationg Fees 4,843 18,197 276% Market Data 208 2,437 1071% Other fees 203 1,350 564% FINANCIAL INCOME Annual revenues were kept in pesos, resulting in more than 80% of our portfolio being invested in dollars. In the quarter, the official peso-dollar exchange rate showed a lower devaluation than in the same quarter of the previous year. Domestic rates (in ARS) experienced a sharp decline, and dollar rates also fell somewhat, contributing a small decline versus the same quarter of the previous year. Financial Income (ARS Million) 130,394 FX Difference Interest and mark to market 102,717 33,651 30,257 23,928 9,541 16,386 1,344 1,130 1,360 2,286 2,781 4,358 8,585 16,129 1,231 5,370 7,849 8,815 671 539 693 1,545 2,342 2,099 -34 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 5 EXPENDITURES Total expenditures totaled ARS 10,917 million. This implied a YoY increase 21 pp above the accumulated retail inflation between 3Q23 and 3Q24 (234%). The increases above inflation were explained, mainly, by those categories related to higher activity level, such as Taxes (IIBB) which grew in line with invoicing, Technology expenses which were higher due to devaluation, and Connection with other CSDs, which also were related to more activity. Depreciations and amortizations were up YoY due to the go live of the Nasdaq project, while compensations increased due to pay rises to employees and were below inflation. Total Expenditures BYMA (ARS Millions) 3Q23 3Q24 3Q24/3Q23 Total Expenditures 3,076 10,917 255% Compensations 1,619.4 4,468.8 176% Consultancy 62.5 234.1 275% Technology expenditures 370.0 1,934.1 423% Buildings and Infrastructure 72.3 404.5 459% Interconection with other CSDs 229.1 743.8 225% Taxes 504.7 2,080.8 312% Depreciations and Amortizations 37.9 267.9 608% Others 179.6 782.8 336% EFFICIENCY LTM EBITDA margin was 73%, in line with 2Q24, an improvement since the previous year . This was due to the increase in revenues at a faster pace than that or expenditures Operating margin - which does not include financial income - also had a strong growth, reaching an all-time high of 65%. 6 80% 75% 70% EBITDA Mg. Rolling 12 month 71% 72% 73% 73% 68% 69% 63% 64% 65% 59% 60% 55% 50% 45% 40% 35% 30% 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 70% 60% 50% Operating Margin 65% 54% 38% 37% 42% 41% 40% 30% 20% 0%1 0% 2019 2020 2021 2022 2023 YTD 7 HISTORICAL FINANCIAL HIGHTLIGHTS (current prices) 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 YoY % ADC Services 746.1 949.8 1077.3 1386.8 1872.1 3020.5 4104.2 5744.5 6100.8 226% ARyP Services 18.0 33.4 34.9 39.6 47.6 62.8 80.6 95.8 106.8 125% Additional services 270.7 320.3 411.0 484.7 756.3 1476.9 2600.2 2898.2 3775.2 399% CSD Revenues 1,034.9 1,303.5 1,523.1 1,911.0 2,676.0 4,560.2 6,785.0 8,738.5 9,982.9 273% Operating fees 1,346.4 1,385.2 2,117.9 3,000.5 4,842.6 7,980.8 11,523.9 15,034.0 18,196.6 276% Others 84.1 92.7 113.4 148.0 208.2 328.2 1,466.3 1,780.1 2,437.0 1071% Market Data 94.0 110.5 149.7 174.3 203.2 623.9 663.9 930.6 1,350.1 564% Exchange Revenues 1,524.4 1,588.4 2,381.0 3,322.8 5,254.0 8,932.9 13,654.1 17,744.8 21,983.6 318% Other operating Income 3,114.1 -130.3 1,769.4 2,708.1 5,325.5 4,002.2 10,761.5 8,767.4 9,529.7 79% Total Operating Income 5,673.5 2,761.6 5,673.5 7,942.0 13,255.4 17,495.3 31,200.6 35,250.7 41,496.3 213% #DIV/0! Total Operating Expenses 1,412.7 1,507.0 1,854.4 2,293.9 3,037.7 6,603.9 7,311.3 9,283.8 10,648.9 251% EBITDA 4,260.8 1,254.6 3,819.1 5,648.1 10,217.7 10,891.5 23,889.3 25,966.9 30,847.3 202% Mg EBITDA 75.1% 45.4% 67.3% 71.1% 77.1% 62.3% 76.6% 73.7% 74.3% -4% D&A 26.6 70.3 32.2 33.5 37.9 141.4 136.3 221.6 267.9 608% EBIT 4,234.2 1,184.3 3,786.9 5,614.6 10,179.9 10,750.0 23,753.1 25,745.3 30,579.5 200% Mg EBIT 74.6% 42.9% 66.7% 70.7% 76.8% 61.4% 76.1% 73.0% 73.7% -4% Financial Income 4,357.6 8,584.6 9,541.2 16,386.3 23,927.0 130,394.4 33,650.7 30,256.9 31,927.1 33% Participation in other companies 111.0 129.7 92.1 -43.1 176.1 1,454.4 0.0 0.0 384.0 118% Others -31.6 92.3 -35.4 39.0 198.0 150.7 -78.1 -283.1 253.9 28% EBT 8,671.2 9,990.9 13,384.8 21,996.9 34,481.1 142,749.6 57,325.7 55,719.2 63,144.4 83% Income Tax 765.9 1,002.7 1,929.8 5,911.1 1,842.7 8,150.8 8,888.4 2,032.5 16,307.4 785% Net Income 7,905 8,988 11,455 16,086 32,638 134,599 48,437 53,687 46,837 44% 8

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