Bolsas y Mercados Argentinos S A : Earnings Presentation 2Q24

About this update from Bolsas Y Mercados Argentinos Sa

Earnings Presentation 2° QUARTER 2024 (2Q24) August 9 th , 2024 QUARTERLY RESULTS Business revenues kept growing in real terms. Operating margin increased, despite increasing expenditures related to higher investment and activity levels. The difference between inflation (IPC) and FX (A3500), implied an inflation adjustment larger than the financial result. ARS Million Historical 2Q23 2Q24 Var. CSD Revenues 1,911 8,738 357% Exchange Revenues 3,323 17,745 434% Income 5,234 26,483 406% Total Expenses -2,260 -9,505 321% Gross Margin 2,973 16,978 471% Other Operating Income 2,708 8,767 224% Net Operatig Result 5,682 25,745 353% Inflation Adjustment Impact 0 0 0% Financial Income 16,386 30,257 85% Oher gains/losses 39 0 -100% Participation in other companies -43 -283 557% EBT 21,997 55,719 153% Income Tax -5,911 -2,033 -66% Net Income 16,086 53,687 234% Adjusted by Inflation 2Q23 2Q24 Var. 7,655 9,183 20% 13,048 18,543 42% 20,703 27,726 34% -10,010 -12,055 20% 10,694 15,671 47% 11,178 9,121 -18% 21,872 24,793 13% -52,055 -53,248 2% 63,890 32,181 -50% 64 52 -19% 146 -1,158 -895% 33,916 2,618 -92% -10,302 -5,143 N/A 23,614 -2,525 N/A Variables 2Q24: CPI: (18.5%) FX (6.3%) (*)This slide is the las showing inflation adjusted figures. Al the others show historical values (not adjusted by inflation) 2 DEPOSITORY: AUC ACCELERATED GROWTH 18,000 Assets Under Custody (AUC, 2Q24 quarterly 16,000 average) experienced a strong increase due 14,000 to the issuance of domestic treasury bills 12,000 (Lecap), after the new monetary policy was implemented. 10,000 AuC, face value, quarterly evolution (thousand millions) +271% 15,877 AuC, market value, by asset class 8,000 6,372 6,000 5,083 4,332 4,281 4,533 3,539 3,525 4,000 2,709 3,156 3,314 2,404 2,583 2,196 2,000 - 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3% 12% Public Debt Treasury and Central bank bills 140,000 AuC, market value, quarterly evolution 125,741 120,000 (ARS million) 100,000 93,676 Trusts 24% 52% Equity Private Debt 9% Others 80,000 +429% 60,000 53,568 40,000 36,683 12,645 15,158 19,510 23,756 20,000 11,531 6,200 7,161 7,797 8,780 9,746 - 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3 CSD: REVENUES SHOW INCREASED LEVEL OF ACTIVITY Depositary revenues added up to ARS 8,738 million, implying an YoY growth of 357%, against a 279% YoY inflation rate. The hike in Lecap was in the later part of the quarter, therefore fees did not experience a full quarter of impact. The main income lines went up above inflation since 2Q23, due to higher activity levels. 2Q 23 2Q 24 YoY $ YoY % CSD (ARS Millions) 1,911.0 8,738.5 6,827.4 357.3% SDC Services 1,386.8 5,744.5 4,357.7 314.2% ARyP Services 39.6 95.8 56.2 142.2% Additional services 484.7 2,898.2 2,413.5 498.0% CSD revenues (ARS million) 8,738 Additional services 6,785 2,898 ARyP services 96 2,600 4,560 SDC Services 81 1,477 2,676 63 5,744 1,911 756 1,523 4,104 904 1,059 1,290 485 48 3,020 780 411 645 685 702 320 40 271 35 1,872 202 33 168 200 18 1,387 166 164 16 13 14 950 1,077 12 13 566 686 746 468 508 521 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 4Q 23 1Q 24 2Q 24 4 EXCHANGE: CONTINUED INCREASE IN BUSSINES VOLUMES Exchange revenues (ARS 17.7 bn) were 434% higher than in 2Q23 and are still showing higher growth than those of the CSD. Equity trading still represents the largest share of Exchange income. Exchange revenues (ARS million) Market Data +434% Trading C&S Fees 17,745 1,780 1,466 Exchange Revenue Share 0% 0% 2% Equity 3% 5% Fixed income On-exchange repo 38% Other Fees 8,933 328 15,034 5,254 11,524 3,323 208 7,981 2,381 1,524 1,588 148 4,843 113 581 641 752 874 885 966 190 3,000 165 2,118 24 27 35 44 51 129 1,265 1,288 664 931 624 496 553 656 765 759 758 94 110 150 174 203 61 61 61 65 75 79 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 4Q 23 1Q 24 2Q 24 2Q 23 2Q 24 YoY $ YoY % EXCHANGE (ARS Millions) 3,322.8 17,744.8 14,422 434.0% Trading C&S fees 3,000.5 15,034.0 12,034 401.1% Market Data 174.3 930.6 756 433.8% Other fees 148.0 1,780.1 1,632 1103.1% 20% Options Futures Securities lending Market Data 32% Others Traded values keep growing steadily across all asset classes, requiring constant upgrades in hardware and software 5 EXCHANGE: EQUITY GROWS WITH INCREASED INTEREST IN DOMESTIC SHARES Total income from equity transactions, ARS 6,683 million, rose 407% YoY because of the growth in traded value. In this quarter, it was the first time since 3Q20 when trading of domestic shares was larger than that of CEDEARs. It is important to highlight that CEDEARs traded value keeps growing as well. 90,000 Equity ADTV (ARS Million) 81,407 80,000 70,000 61,570 36,747 Equity CEDEAR 60,000 51,291 50,000 32,006 40,000 27,409 28,296 30,000 20,000 17,339 17,275 44,660 8,419 7,617 11,161 10,439 29,563 10,000 2,648 3,113 3,392 5,014 4,876 4,391 6,427 23,882 1,779 1,969 2,203 3,360 3,677 3,186 6,337 5,119 4,733 6,900 11,021 2,082 2,498 - 870 1,144 1,189 1,654 1,199 1,205 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 Equity Revenues ARS Millions 6,683 +407% 4,975 4,051 2,335 281 340 458 429 386 785 687 914 1,318 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 6 EXCHANGE: GUARANTEED SEGMENT SHOWED LARGEST INCREASE Income grew 6.5X YoY explained by a combination of higher traded values. Both segments increased, but the guaranteed segment showed a 40% increase in the ADTV. We maintained a share of almost 80%. 1,200,000 1,087,131 1,000,000 Fixed Income ADTV Guaranteed Segment ARS Million. 800,000 777,340 591,209 600,000 393,944 400,000 280,135 200,000 181,932 29,80433,20639,39940,407 53,118 84,90291,603 129,366 - 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 2,500,000 Fixed Income ADTV Non-Guaranteed Segment 2,326,372 2,000,000 ARS Million. 1,737,173 1,500,000 1,158,220 1,000,000 634,156 410,692 314,843 235,530 500,000 189,737 133,538 106,028 61,76549,14861,18679,767 Fixed Income Revenues 5,701 ARS Millions 538% 4,631 2,246 1,521 615 893 213 295 364 113 127 144 138 150 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 Fixed Income revenues, when compared to the previous quarter, rose by 23%. The increase in the guaranteed segment (PPT) was the largest contributor to higher revenues thanks to algo- trading and Letras. Fixed income revenues represented 32% of Exchange revenues - 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 7 EXCHANGE: ON-EXCHANGE REPO ALSO MAINTAINS STRONG GROWTH On-exchange repo ADTV went up by 37% since 1Q24 and surged 477% when compared to 2Q24. We maintain our policy of growth limited by a strong look at risk management. 2,500 2,289 On Exchange Repo ADTV 2,000 ARS Billion 1,671 1,500 976 1,000 397 485 500 188 278 66 69 73 76 98 128 133 - 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 Total income in this category reached ARS 3,460 million, representing 20% of Exchange revenues. On-Exchange Repo Revenues ARS Millions 3,460 +394% 128 134 156 160 177 222 253 330 505 2,555 1,522 700 874 On-exchange repo income grew 394% YoY. 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 8 MARKETDATA: INCREASING NUMBER OF BYMADATA USERS Income from this business line grew 434% YoY, mainly explained by the evolution of the official exchange rate. As in previous quarters, Market Data revenues were boosted mainly by those coming from foreign vendors and domestic market data distribution. The number of users of our platform BYMADATA grew 20% YoY, helping this line grow faster than the others. Total Market Data 2Q 24 2Q 23 YoY $ YoY % (ARS Millions) 174.3 930.6 756 433.8% International Vendors 95.0 405.0 310 326.5% Market Data 46.7 335.8 289 619.2% BYMADATA 28.4 187.0 159 559.6% Local Vendors 4.4 2.9 -1 -34.0% 20% Vendors extranjeros 44% Market Data - ALyCs BYMADATA 36% Vendors locales 9 Expenses breakdown OPERATING EXPENSES: INCREASING DUE TO HIGHER INVESTMENT AND ACTIVITY Total expenses grew 309% YoY, above inflation for the period. This was explained by increased variable expenses related to higher activity and to a rise in amortizations and depreciations from higher investments. ARS Million 2Q 23 2Q 24 QoQ $ QoQ % Compensation 1,062.0 4,321.7 3,259.7 306.9% Consultancy 63.5 261.3 197.9 311.8% Technology expenditures 329.4 1,212.5 883.0 268.0% Buildings and Infrastructure 64.9 242.4 177.5 273.5% Interconection with other CSDs 142.5 669.8 527.3 370.1% Taxes 341.9 1,770.8 1,429.0 418.0% Depreciations 33.5 221.6 188.1 561.8% Others 289.7 805.3 515.6 177.9% TOTAL EXPENSES 2,327.3 9,505.4 7,178.0 308.4% 2% 8% Compensation Consultancy 19% Technology expenditures 45% Buildings and Infrastructure Interconection with other CSDs 7% Taxes 3% Depreciations 13% 3% Others Increase in expenditures was 29 pp above 2Q24/2Q23 inflation (279%). It was mainly due to lines related with activity levels such as Taxes (IIBB), which grew in line with invoicing, and connection to international CSDs, which also showed more activity. Depreciations and amortizations were up because of Nasdaq project go live. Compensations algo went up, due to increases in salaries. 10

View stock analysis, news, and events for Bolsas Y Mercados Argentinos Sa