Bolsas y Mercados Argentinos S A : Press Release 1Q23

About this update from Bolsas Y Mercados Argentinos Sa

BYMA announces results for 1Q23 Buenos Aires, Argentina, May 12 th , 2023. - Bolsas y Mercados Argentinos S.A. (BYMA: BYMA) reported today financial results for the period of three months ended March 31 st , 2023 (1Q23). In compliance with NIC29, BYMA presented its results adjusted for inflation. The financial statements are all expressed in the currency measure adjusted as of March 2023. This includes both the figures for 2023 as well as those for 2022. The numbers presented herein are mostly historical figures. Those that are adjusted for inflation are clarified in each case. 1 Summary of the Financial Statements Jan -Mar. 2023 (1Q-23) OVERALL RESULTADS Net income adjusted for inflation was positive at ARS 1.720 million, being the second consecutive quarter with positive adjusted results. In historical terms (i.e. without inflation adjustment) net income was ARS 11.455 million, which is 362% higher than the same figure for 1Q22, showing a very high real increase. The increase in operating revenue was explained by the strong growth in business volumes, whereas the financial income comes as a result of the higher interest rates, both international as well as domestic. Operating expenses (excluding D&A) adjusted for inflation fell 8% with respect to 1Q22. As a result of the above, LTM EBITDA was 64%, one of the highest values ever for BYMA. ARS Million Historical 1Q22 1Q23 Var. CSD Revenues 780 1,523 95% Exchange Revenues 885 2,381 169% Income 1,665 3,904 134% Total Expenses -1,095 -1,887 72% Gross Margin 570 2,018 254% Other Operating Income 140 1,769 1164% Net Operatig Result 710 3,787 433% Inflation Adjustment Impact 0 0 0% Financial Income 2,286 9,541 317% Oher gains/losses -13 -35 172% Participation in other companies 52 92 77% EBT 3,035 13,385 341% Income Tax -555 -1,930 248% Net Income 2,480 11,455 362% LTM EBITDA Margin 50% 64% Operating Margin 34% 52% Adjusted by Inflation 1Q22 1Q23 Var. 1,690 1,618 -4% 1,911 2,554 34% 3,601 4,172 16% -2,543 -2,346 -8% 1,058 1,826 73% 327 1,971 503% 1,385 3,797 174% -7,933 -10,518 33% 4,867 10,150 109% 12 11 -10% 30 92 204% -1,639 3,532 315% -1,038 -1,812 N/A -2,677 1,720 164% 2 BUSINESS HIGHLIGHTS: CSD AND EXCHANGE Assets under Custody (AUCs, shown as quarterly average) grew 37% YoY measured by face value, representing the highest historical value. They grew 23% Q-o-Q and were explained by the growth in Public Debt issuance. When measured at Market prices, AuC nearly doubled since 1Q22 (+99.6%), and were 28% higher than the previous quarter. Regarding the Exchange, total ADTV also reached an all-time high, with ARS 789,992 million, or 197% above 1Q22's ADTV. This increase was explained by higher traded volumes across all asset classes. It is worth highlighting the 212% YoY increase in fixed income ADTV, where the non-guaranteed segment in particular showed a hike of 242%. ADTV of equity (both domestic and Cedears) went up by 129% when compared to 1Q22, and up by 46% against 4Q22. On-Exchange repos also experienced a remarkable performance: they were 184% higher than 1Q22, and 47.5% above the value of the previous quarter. Key Business Drivers BYMA 1Q23 1Q22 1Q23/ 1Q22 Assets under Custody (ARS Million) Par Value (Millions) 4,331,621 3,155,627 37.3% Market Value (ARS Million) 19,448,151 9,745,906 99.6% ADTV (ARS Million) TOTAL 789,992 266,120 196.9% Fixed Income 496,775 159,145 212.2% Guaranteed Segment 181,932 53,118 242.5% Non-Guaranteed Segment 314,843 106,028 196.9% Equity 11,161 4,876 128.9% On Exchange Repo 277,693 97,802 183.9% 3 OPERATING INCOME HIGHLIGHTS (historical values) Revenues from the CSD (Caja de Valores) totaled ARS 1,523 million, 95% more than those of 1Q22. Even though ADC Services accounted for 70% of total revenue, all business lines experienced significant growth. Although less important in relative terms, it is worth mentioning the increase in revenues in the Additional Services line, due to higher activity levels. Exchange revenues added up to ARS 2,381 million, against ARS 885 million in 1q22, implying a YoY growth of 169%, showing also an increase in real terms. Higher revenues from the Exchange were associated to the higher level of traded values previously mentioned. Exchange revenues represented 61% of operating Income, while the remaining 39% belonged to the CSD. This shows a higher contribution to the business of the Exchange when compared to 1Q22, when these shares were 53% and 47%, respectively. Other operating income reached ARS 1,769 million, against ARS 140 million in 1Q22. Operating Income BYMA ( ARS Millions) 1Q23 1Q22 1Q23/ 1Q22 Total Revenue 3,904.1 1,664.4 134.6% CSD 1,523.1 779.7 95.3% ADC Services 1,077.3 566.2 90.3% ACRyP Services 34.9 13.8 153.2% Additional services 411.0 199.7 105.8% EXCHANGE 2,381.0 884.7 169.1% Trading C&S fees 2,117.9 758.5 179.2% Market Data 149.7 75.4 98.5% Other fees 113.4 50.7 123.7% 4 FINANCIAL INCOME More than 90% of our portfolio continues to be dollarized. Nearly two thirds of financial income was explained by higher interest rates, while the remaining were due to the sale of assets and mark-to-market. Financial Income (ARS Million) 9,541 8,585 4,172 5,253 4,358 2,366 2,189 2,286 2,781 2,258 5,370 439 1,346 1,344 1,360 741 1,516 763 962 1,130 3,332 476 673 592 668 1,545 2,342 2,099 149 1,228 849 870 671 693 614 539 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 FX Difference Interest and mark to market EXPENSES Total expenses reached AARS 1,886 million, against ARS 1,095 million in 1Q22, or 72.2% y-o-y, which implied a growth of 32 percentage points below the y-o-y inflation rate. This reduction in expenses was mainly due to the reduction in consultancy for technology projects which, in turn, was achieved by hiring more cost-effective suppliers and a more efficient software development process. Taxes (IIBB) went up significantly because of higher financial results as well as the increase in revenues. Expenses for connection with other CSD were up since 1Q22 due to higher traded volume. 5

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