BOVESPA Segment

josefajardo.com

BOVESPA Segment

February 2012


Forward Looking Statements

2

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 current projections about the industries BM&FBovespa works in.

The verbs “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “plan,” “predict,” “project,” “target” and other similar

verbs are intended to identify these forward-looking statements, which involve risks and uncertainties that could cause

actual results to differ materially from those projected in this presentation and do not guarantee any future BM&FBovespa

performance.

The factors that might affect performance include, but are not limited to: (i) market acceptance of BM&FBOVESPA services;

(ii) volatility related to (a) the Brazilian economy and securities markets and (b) the highly-competitive industries

BM&FBovespa operates in; (iii) changes in (a) domestic and foreign legislation and taxation and (b) government policies

related to the financial and securities markets; (iv) increasing competition from new entrants to the Brazilian markets; (v)

ability to keep up with rapid changes in technological environment, including the implementation of enhanced

functionality demanded by BM&FBovespa customers; (vi) ability to maintain an ongoing process for introducing

competitive new products and services, while maintaining the competitiveness of existing ones; (vii) ability to attract new

customers in domestic and foreign jurisdictions; (viii) ability to expand the offer of BM&FBovespa products in foreign

jurisdictions.

All forward-looking statements in this presentation are based on information and data available as of the date they were

made, and BM&FBovespa undertakes no obligation to update them in light of new information or future development.

This presentation does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be

any sale of securities where such offer or sale would be unlawful prior to registration or qualification under the securities

law. No offering shall be made except by means of a prospectus meeting the requirements of the Brazilian Securities

Commission CVM Instruction 400 of 2003, as amended.


BVMF STOCK PRICE

Recent Performance

3


BVMF3 – recent performance

IOFs

10/17

R$14.97

BM&FBOVESPA

IBOVESPA

BVMF3 YTD: +20.8%

Ibovespa YTD: +14.9%

Goodwill

Competition

11/30

News

R$13.04

01/05

R$13.12

BATs

02/15

R$11.45

Reductions of Volumes

Estimates by the Market

Rumors

about IOF

Direct Edge

11/21

R$10.11

Exchanges Mergers

02/08

R$11.20

New IOF on

Derivatives

07/26

R$9.55

Redemption of

IOF on Equities

12/01

R$9.88

Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11

Note: updated until January 6, 2012.

4


BRAZILIAN MARKET OPPORTUNITIES

5


Brazil represents a unique investment opportunity

Rio Olympics 2016

and World Cup 2014

Pre-salt Oil Exploration

Increase in Income

Levels

Interest Rate

Decline

Brazilian per

capita income

will rise from

US$10k in

2010 to

US$20k in

2020 (1)

New growth

cycle and

investments in

infra-structure

Brazil will

have the 6 th

highest world

purchasing

power

by 2013

(Price

Coopers) (2)

Development of

Mortgage Market

Expansion of Middle

Class

Greater Internal

Demand

Entrepreneurial Stimulus

(1) LCA Consultores as of Jun/10.

(2) Price Coopers as of Jan/10.

6


Equity Market (BOVESPA Segment)

Low penetration in the Brazilian market

Jan-05

Jul-05

Jan-06

Jul-06

Jan-07

Jul-07

Jan-08

Jul-08

Jan-09

Jul-09

Jan-10

Jul-10

Jan-11

Jul-11

Jan-12

Clients base: huge potential in retail and pension funds segments

Number of custody accounts (thousands)

128.6

Jan’12

600.4

Low penetration of equity and

derivatives in the main investors’

portfolios

Stable and “low” interest rate

environment encourage more

exposure in equities

Recent growth in the number of

retail investors, but still low

compared to other markets

Pension funds portfolio

R$548 billion

Equity

Fixed Income and Others

71.4%

R$157 billion

72.3%

28.6%

27.7%

2002 Sep-11

Listed Companies

Dec’11 Listed Companies (27 th in the World)

6.752

4.988

3.945 3.838

3.520 3.276

2.886

2.079 1.816

373

India USA Canada China/HK Japan Spain UK Australia Korea Brazil

Low number of listed companies compared to

other countries

Lack of important economic sectors in the

exchange, for instance: oil & gas, infrastructure,

retail, IT and pharmaceutical,

Investment cycle may bring new companies and

sectors to the exchange

Currently, SMEs are not able to raise money

through equity easily

Source: ABRAPP, WFE and BM&FBOVESPA

7


Derivatives Market (BM&F Segment)

Growth in the credit level will favor volumes

8

Credit: very low credit level and even lower in the case of mortgage transactions

Credit to GDP

Trade Flow (total Imports + Exports in USD billions)

Total Credit

Mortgage

49.1%

482

27.4%

229

281

371

281

384

4.5% 4.8%

Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12

2006 2007 2008 2009 2010 2011

Interest Rate in BRL contracts: growth in credit levels, specially in fixed rates, support the increase the activity of

financial institutions

FX contracts: growth in the amount of foreign trading and change in the culture of the Brazilian entrepreneurs can

push up volumes in this group of contracts, mainly in currencies other than US$

Index-based contracts: growth in cash equity market, the launching and development of ETFs and the growth of

exposure to equity by institutional investors can drive the growth of these contracts

Commodities contracts: cash settled contracts and the change in the behavior of farmers that are becoming more

sophisticated


MAIN INITIATIVES

9


Launching of new products

Product diversification strengthens revenues and competitive position

10

Growth in ETFs

• 12 ETFs currently traded

Market maker for options

• Bidding process initiated to select equity options market

makers for 10 companies and for the IBOVESPA

Cross-listing of

derivatives with CME and

BRICS

• Cross-listing of futures contracts with CME Group (stock

index-based and commodities contracts) and BRICS

exchange (stock index-based contracts)

Launch of Additional

BDRs

• 40 BDRs currently traded and other 30 to start in the

coming months

Brazil Easy Investing

• Order book in foreign currency (targeting foreign retail

investors)


11

Strategic Projects

Multi-asset trading platform (PUMA Trading System)

• State of the art in trading technology and technological independency

• Derivates module successfully implemented in 2H11

• Equities market to be concluded in 2H12

Licensing TRADExpress Real Time Clearing system

Objective: integrating and modernizing our existing clearing facilities should proceed over 2012.

• Integrated tests with the market and implementation of the systems scheduled to take place in 2013

• Partnership advantages:

• License to use the software

• Access to the source code

• Selling rights over our new clearing platform

Registration systems for OTC derivatives

Objetive: modernize, improve and expand the range of our registration services for OTC

derivatives, while offering our customers a streamlined, quality solution and thorough

regulatory reporting tool

• One of the most flexible and complete engines for registration, price discovery, risk

assessment, capture and lifecycle processing of these transactions

• Three-module implementation: the first one is schedule to 2H12, the second one for

1H13 and third module of the platform will be announced in due course


International Projects

Creating a global market

Partnerships with international exchanges

- Strategic partnership with CME Group

- Asia: MoU and discussions with HKEx, Shanghai

and Shenzhen Exchanges

- Latam: MoU with Chile and Colombia exchange

and discussions with Peru and Colombia

- Cross listing of Index-based futures with

exchanges of BRICS countries

Strengthening the sales force in other countries

- Offices in New York, London and Shanghai

12


Jan-10

Feb-10

Mar-10

Apr-10

May-10

Jun-10

Jul-10

Aug-10

Sep-10

Oct-10

Nov-10

Dec-10

Jan-11

Feb-11

Mar-11

Apr-11

May-11

Jun-11

Jul-11

Aug-11

Sep-11

Oct-11

Nov-11

Dec-11

Showing results

HFTs and Co-location arrangements: ADTV

(in R$ millions)

BOVESPA Segment

1,329

HFT via other connection models

HFT via Co-location

1,145

1,088

574

899

812

228

720 629

199

533

56

613 671

755

477

425 459

Market Making for Options on Single Stocks:

ADTV Single stocks: OGXP3 and ITUB4

(in R$ millions)

15.4

69%

25.9

Nov-Dec/10 1Q11 2Q11 3Q11 4Q11 Jan/12

ETFs: ADTV

Jan-Aug 2011 Average (Sept - Dec 2011)

Treasury Direct – Value under custody

(in R$ millions)

7,498

18.6

28.5

48.7

64.4

3,248

4,653

2009 2010 2011 Jan/12

Trading systems performance and throughput capacity

Old System Old System PUMA (2012)

Latency or round-trip time (milliseconds) inside BVMF 10-15 10-15


BUSINESS MODEL AND REGULATORY

FRAMEWORK

14


Possible Competition

Important considerations

15

EASING REGULATION IS NOT EXPECTED

• Main requirements: pre-trade controls, self-regulatory (SRO), off exchange trades are not permitted

(internalization of orders and OTC), CCP for stocks trading, post-trading at the beneficial owner level

• Competition in other exchanges was intensified after easing regulation

THE EXCHANGE FEES (TRADING AND POST-TRADING) ARE PAID BY THE FINAL INVESTOR

• Differently from USA and Europe, the final investors is the one who pays the exchange fees

• Brokers couldn’t increase their share in the all-in trading cost pie in case of reduction on the exchange fees

STOCKS TRADING ALL-IN COST IN BVMF IS COMPETITIVE

• Despite the misleading perception, all-in cost in BVMF is competitive compared to other markets

• Comparing only the trading fees among exchanges is misleading. BVMF provides higher portion of services

than the peers

IT INFRASTRUCTURE MOVING TO STATE OF THE ART

• There is no gap of IT infrastructure

• Increasing participation of HFT via Co-location (moving to sub millisecond latency)

RECENT BM&FBOVESPA INITIATIVES (REBALANCING OF FEES STRUCTURE)

• Shift between trading and post-trading fees


Brazilian Market Regulatory Framework

Legal requirements: resilience, transparence, clear rules….

16

Regulator’s words about sharing the post-trading facilities

“in the regulations, there is nothing that either prohibits or obliges companies regarding use of the clearing services of

BM&FBovespa”

Head of CVM, Maria H. Santana, on FT in Nov 15, 2011

CVM will receive a report from an independent consultant (Oxera)

Analysis of the Brazilian capital market framework

Some subjects that could be visited in this study: Block Trading Facility; High Frequency trading; Listing

requirements; among others

Positive characteristics of the Brazilian regulatory framework that will not change: transparency pre and posttrading

(including prohibition for internalization of orders) and the beneficial owner level model

The study will be funded by a domestic broker as part of the payment of a fine (it is under discussion since the

beginning of the year)

The study is expected to be delivered in April or May 2012

Important issues regarding competition

Benefits from market fragmentation versus implied risks (transparency, price discovering, among others)

Risk management: differently from many other markets, BVMF’s clearing risk system is based on pre trade risk

management, what makes our market much safer (integrated model allows it)

Trading / auction rules: this rules are stricter and complex in Brazil and must be harmonized among venues

Listed Companies monitoring: who and how to do that

Market supervision: how perform this role and assure the market efficiency


Equity Market Settlement Structure - Brazil Compared with USA

Two different regulatory frameworks

17

Trading

BRAZIL

(All the trades must be matched on an

exchange environment)

BVMF

USA

(Brokers can internalize orders)

Trading Venues

BVMF

Brokers

A and B

DTCC

Brokers

A and B

Broker

A

Broker

B

Post trading

Clearing (CCP)

Settlement

Central Depository

Investors

Investors

Investors

Investors

100% vertically integrated: clearing, settlement and

central depository at the beneficial owner level

Brokers control their clients’ portfolios and settle

positions through BVMF’s infrastructure (this

impacts the post-trade fees charged by BVMF)

DTCC does the clearing, settlement and central

depository of securities at the brokers’ level

Each broker (prime broker) has its own structure to

control their clients’ portfolios and settle positions

(this impact the prime broker’s costs)


Business Model

Listed Exchange Business Model

Diversified and Integrated Integrated Derivatives Diversified but Not Integrated*

* Do not provide post-trading services for the equity market

Market Capitalization (US$ billions) and 2010 EBITDA Margin (%)

Source: Bloomberg

Updated until: 02/01/2012

80.1%

30

78.1%

70.0% 70.0%

67.0%

68.4%

25

62.2%

55.0%

55.8%

20

44.0%

48.0%

42.1%

15

10 18.7 16.3

5

13.2 11.7

8.3 6.9 5.6 5.6 4.4 3.9 3.1 2.3

-

HKEx CME BVMF Deutsche ICE Nyse ASX * SGX * Nasdaq LSE TMX BME

Boerse

Euronext

Diversified and integrated Derivatives Diversified but not integrated EBITDA Margin 2010

* 12 months ended on Jun/11

80,0%

70,0%

60,0%

50,0%

40,0%

30,0%

20,0%

10,0%

0,0%

18


Brazilian Market Regulatory Framework

Legal requirements: resilience, transparence, clear rules….

19

Brokers &

investors

• Regulation prohibits internalization of orders, dark pools and

ATS/MTFs, stocks trading in both exchange and OTC

simultaneously

• Settlement and clearing of stocks trading must be done through

a CCP

• Settlement and clearing at the beneficial owner level make the

Brazilian market safer and more resilient

Trading

• Under the regulation in place, potential competitors would be

obliged to provide the same integrated solution, with the same

rules and transparency

• The final investor pays the exchange fee

Pos-Trading

• Other exchanges have been seeking integrated models (self

clearing models)

• Naked access is not allowed

• Naked short selling is not possible


New Fee Structure – Bovespa Segment

Demystifying: BVMF prices are competitive

The new fee structure shows that the fees charged by BVMF are competitive

in the USA, the average all in trading cost could vary from

US$0.02 to US$0.04 per share, in line with the Brazilian

market

In average, retail investors pay less to trade

stocks in Brazil than they pay in USA!

Institutional Investors¹ (stock price at US$28.00)

Lower Fee

Higher Fee

(Exchange) (Exchange)

Bps

Cents of Cents of

Bps

US$

US$

Trading Fee 0.70 0.196 0.70 0.196

Settlement Fee 1.80 0.504 2.75 0.770

BVMF Total Fee 2.50 0.700 3.45 0.966

Broker fee

(estimate)

All-in cost

(a) 1.50 0.420 1.50 0.420

(b) 5.00 1.400 5.00 1.400

(c) 10.00 2.800 10.00 2.800

(a) 4.00 1.120 4.95 1.386

(b) 7.50 2.100 8.45 2.366

(c) 12.50 3.500 13.45 3.766

The average share of BVMF in the investor’s

all in cost ranges is 37 3 %

+

=

Retail Investors² (retail brokers simulation)

BRL USA BRAZIL

Broker 13.80 9.06

Exchange - 2.59

All-in cost 13.80 11.65

• In the USA the interface is only with the brokerage

house (the exchange cost is embedded within the

broker fee), while in Brazil the interface is with both

broker and exchange

¹ The minimum fee is paid by local institution and investment clubs and day trading, in this case, for all type of investors.

² Brokers’ fee (Brazil and USA) is the average price collected from four USA discount brokers and from four Brazilian retail brokers in June 2011. The R$2.59

exchange fee per order results from: 3.45bps on a trade of R$7.5 thousand (average size of the Home Broker trading).

3 It considers the average fee charge by BVMF and brokers, 2.975 bps and 5.000 bps, respectively.

20


Fees in other Cash Market

Comparing with Deutsche Börse (integrated model)

21

Comparing trading and post trading costs: BVMF vs. Deutshe Börse

in USD

Local

Holding Period - 3 months

Holding Period - 12 months

BVMF Deutsche Börse BVMF Deutsche Börse

Foreigner

100

Trades

25

Trades

Local

Foreigner

100

Trades

25

Trades

Trading 2,100 2,100 1,512 1,241 2,100 2,100 1,512 1,241

Post trading 5,601 8,262 7,651 3,319 6,204 8,299 13,276 8,944

Clearing and Settlement 5,400 8,250 5,776 1,444 5,400 8,250 5,776 1,444

Depository 201 12 1,875 1,875 804 49 7,500 7,500

All-in cost 7,701 10,362 9,163 4,560 8,304 10,399 14,788 10,185

In Germany, the post trading costs, in special the depository cost, are higher

than the trading costs

Note: institutional investor simulation; 500 th stocks trading size; USD30.00 stock price; USD15 million value under custody; Deustche

Börse / Clearstream costs: trading: 0.00504%; clearing and settlement US$28.88 by settlement; trading and clearing/settlement are due

in both in and out of each transaction; custody: 0.05% a.a.

Deutsche Börse fee schedule and source done by Rosenblatt Securities Inc.


1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Jan-11

Feb-11

Mar-11

Apr-11

May-11

Jun-11

Jul-11

Aug-11

Sep-11

Oct-11

Nov-11

Dec-11

Jan-12

Brazilian´s stock trading breakdown

Novo Mercado

Launching

End of CPMF

(Financial

Transaction Tax)

Sarbanes-Oxley Act

(SOX)

Jan´12

27.3%

40.9%

13.6%

29.8%

59.1%

29.3%

Other USA Venues - Brazilian ADRs NYSE - Brazilian ADRs BM&FBOVESPA - companies with ADRs BM&FBOVESPA (except companies with ADRs)

Source: Bloomberg (in USD traded value of 35 companies with ADRs programs )

Public Offerings in Number of Companies

IPOs

2001

-

2002

1

2003

-

2004

7

2005

9

2006

26

2007

64

2008

4

2009

6

2010

11

2011

11

Total

139

Follow ons

Total

14

14

5

6

8

8

8

15

10

19

16

42

12

76

8

12

18

24

11

22

11

22

121

260

Dual Listings - - - 2 1 1 - - 1 - - 5

*Updated until 01/31/2012

22


OPERATIONAL HIGHLIGHTS

23


BOVESPA Segment: operational highlights

Average Daily Traded Value – ADTV (BRL billions)

4.9

5.5 5.3

6.5 6.5 6.5

7.3

6.5 6.7

6.1 5.9 5.7

7.7

6.3

7.1

5.9

6.2

6.3

1.2

1.6

2.4

2004 2005 2006 2007 2008 2009 2010 2011 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12

Number of Custody Accounts (Thousands)

Turnover Velocity* (12 months average)

559

576

640 626 632 622 611 600

56,4%

63,2%

66,6% 63,8%

64,2% 64,7%

36,8% 37,6% 38,7%

30,8% 29,4%

42,3%

2008 2009 2010 1Q11 2Q11 3Q11 4Q11 Jan/12

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

**Relation of the trading value in the cash market and the market cap of the exchange

24


BOVESPA Segment: capital raising activity

Public Offerings (BRL billions)

IPO Follow-On

74.4

70.1

14.5

46.0

63.2

30.4

34.3

22.2

55.6

13.9 15.1

26.8

18.0

8.8

23.8

4.3 8.5

10.8

15.4

4,5 5.4

7.5

11.2 7.2

2004 2005 2006 2007 2008 2009 2010* 2011

Pipeline: already announced to the market

• There are 4 offerings in the pipeline

• IPOs (4): Isolux Infrastructure, Brasil Travel Turismo e Participações, Seabras Serviços de Petróleo and CVC.

* Excludes the capitalization with barrels reserves by federal government - BRL74.8 billion – in Petrobras offering.

25


BOVESPA Segment

Potential to increase the number of listed companies

Market Capitalization to GDP (%)*

Hong Kong : 617% 1,095% 1,208%

168% 170%

166%

2008 2009 2010

138% 137%

130%

129 % 126% 118%

107%

107%

95%

100% 93% 100%

78%

82%

85%

75%

81%

70% 75%

67%

62

66%

67%

75%

73% 74%

53% 53%

53%

36%

21%

44%

39%

Chile Singapore United Kingdom Canada USA Korea India China France Japan Brazil Mexico

Market Capitalization by Economic Sector

* Source: World Bank

Dec’11

26,4%

15,2%

Dec’05

22,4%

15,7%

14,1%

10,4%

6,8%

0,6%

3,9%

16,2%

1,8%

4,7%

11,5%

11,1%

0,3%

2,6%

8,6%

21,6%

3,6%

2,5%

Oil, Gas and Biofuels Basic Materials Capital Goods and Services Construction and Transportation

Consumer Non Cyclical Consumer Cyclical Information Technology Telecommunications

Public Utilities

Financial

26


27

BM&F Segment: operational highlights

Average Daily Traded Volume – ADTV (Thousands of contracts)

3,560

3,106

2,701 2,824

2,505

2,656

221

300

108

1,740

437

522

89 496

123 62

11784

191 285 218 248

1,573 1,521

438 391

1,167

541

473

1,684 1,797 1,937 2,068 2,364 2,552

110 168

266 535 447

86 74 68 112 167

805 852

162 150

88 80

187 109 124

422 501 711 988 789 843

Rate per Contract - RPC (BRL)

3,418

2,430

2,199 2,107

340

195

292

501

323 114

84

286

574

531

491

110

2,383

1,217 1,493 1220

2,830

2,596 2,706 2,615

2,065

350

120 280 282

586 184 148

315

544 487 245 123

148 541

438

1,774 1,589 1,789 1,234

1,636

2004 2005 2006 2007 2008 2009 2010 2011 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12

BRL Int. Rate (Thousands) FX (Thousands) Index (Thousands) Others (Thousands)

2006 2007 2008 2009 2010 2011 J-11 F-11 M-11 A-11 M-11 J-11 J-11 A-11 S-11 O-11 N-11 D-11 J-12

Interest rates in BRL 0.906 0.950 1.141 0.979 0.889 0.918 0.794 0.877 0.853 0.750 1.111 1.053 1.096 0.917 0.998 0.931 0.928 1.086 1.045

FX rates 2.244 1.859 2.065 2.161 1.928 1.894 2.003 2.037 2.012 1.920 1.820 1.813 1.807 1.699 1.833 2.014 2.082 2.082 2.106

Stock Indices 1.419 1.501 2.145 1.620 1.564 1.614 1.592 1.806 1.451 1.875 1.477 1.864 1.416 1.624 1.358 1.645 1.690 1.719 1.316

Interest rates in USD 1.094 0.965 1.283 1.357 1.142 0.941 1.143 1.159 0.989 0.951 0.801 0.944 0.846 0.851 0.918 1.069 0.922 0.930 0.958

Commodities 4.749 3.195 3.587 2.307 2.168 2.029 1.827 2.084 2.153 1.774 1.967 2.131 1.954 1.765 1.977 2.698 2.558 2.385 1.688

Mini contracts 0.034 0.054 0.162 0.176 0.128 0.129 0.147 0.144 0.135 0.139 0.132 0.140 0.132 0.125 0.111 0.118 0.124 0.132 0.131

OTC 1.571 2.111 2.355 1.655 1.610 1.635 1.412 1.414 1.359 1.367 2.107 1.535 1.606 1.830 1.575 1.234 2.051 2.444 2.438

Total RPC 1.247 1.224 1.527 1.365 1.134 1.106 1.021 1.075 1.025 0.964 1.252 1.220 1.220 1.034 1.136 1.177 1.153 1.293 1.236


Interest Rate in BRL Contracts

Structural changes behind the growth in volumes

Interest Rate in BRL Contracts Breakdown by Maturity (thousands of contracts)

Uncertainty in consensus

impacts short term contracts

2007 2008 2009 2010 2011 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12

1st. Maturity 2nd. Maturity 3rd Maturity 4th. Maturity 5th Maturity

Fixed Rate Credit – in BRL billions

Public Debt / Fixed Rate - in BRL billions

Dec’11

R$747 bi

Dec'11

682.6

Jan’05

R$180 bi

151.4

Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11

Source: Brazilian Central Bank

Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11

28


29

High Frequency Trading (HFT)

HFT will play an important role in both cash and derivatives markets

HFT – BM&F Segment

(ADTV in thousands of contracts and mkt. share)

HFT – Bovespa Segment

(ADTV in BRL billions and mkt. share)

6.0%

301 4.8% 4.7%

4.9% 251 251

3.8% 93 3.6% 10

207 42 208

4.8% 188

17 95

50 93

151

90

77

82

2.8%

53

45

81

41 43 38

1.0%

43

22 44 155

0.3% 32 18

4 20

41 50 69 74 77

101

8 7

66

4 5

7.3% 8.7%

1,80

481 474

28 33

8.3%

1,60

408

27 6.4%

1,40

203

218

26

3.6% 6.7% 7.5%

334

5.4%

6.9% 5.8% 1,20

300

274 11

167

4.2% 3.9% 8

28

21

3.5%

222 222 239 1,00

239

18 4 113

133

0,80

16 18 102

179

88

92

66

90

61 120

17

131

0,60

90 88

45 49

50

68

42

49

29

51 48

65 65 67 82 118 101 126 162 42 41 0,40

155 153 124 0,20

85 88

-

6.6%

8.7% 8.6%

7.6%

0.96

1.00 0.97

5.7% 5.9% 5.9% 0.90

0.19

0.15

0.73 0.27 0.75 0.78

0.15

4.5% 4.0% 0.29

0.26

0.21

0.14 0.21

0.56

0.25

0.50 0.35

0.20

0.26

0.17

0.25

0.27

0.22 0.16

0.51 0.49 0.56

0.35

0.14 0.17

0.26

0.34 0.32

11.4%

1.68

0.20

0.38

10.3%

1.46

1.30 0.16 1.34

0.16

0.17

0.28

0.31

0.26

10.4%

11.5%

1.10

1.02

0.91

0.82

14

12

6,

4,

2,

0,

9.3% 10

1.15 8.7%

0.11 1.09

8,

0.21 0,30

0.83 0.79

Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12

FX Equities Mini contracts Interest Rates in BRL % in Overall Volume

Co-location – BM&F Segment

(ADTV in thousands of contracts and mkt. share)

ADTV (Foreigners) ADTV (Individuals) ADTV (Institutionals) % of overall market

Co-location – Bovespa Segment

(ADTV in BRL billions and mkt. share)

4Q11: 73% of HFT trading is via co-location

6.4%

7.2%

4Q11: 63% of HFT trading is via co-location

4.7% 5.4%

5.6%

6.0%

5.3%

5.0%

2.9%

2.8%

2.7%

2.1%

112 162 173 186

5.6%

4.8%

246 232

6.2%

263

434

408

6.1%

314

4.2% 5.9% 5,2%

225 244

271

1.0%

126

2.0% 2.6%

211

257 218 218 248

301

726

681

791

711

661 629

Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12

Jan/11 Feb/11 Mar/11 Apr/11 May/11 Jun/11 Jul/11 Aug/11 Sep/11 Oct/11 Nov/11 Dec/11 Jan/12


Appendix

30


Fully integrated Business Model

Diversified sources of revenues

Services for issuers, brokers and

commodities trading

Trading, Clearing and Depository Activities

Others Services

Listing

(stocks, bonds, funds,

asset-backed securities,

Among others )

Trading

(stocks, derivatives, corporate and government

Bonds, funds, spot US Dollar, among others)

Custody

(services provided for funds

and other market

participants)

Commodities

Certification

Central Counterparty (CCP)

Clearing and Settlement

(for all products)

Market Data

Indices Licensing

Trading Access

(Brokers)

Central Depository

(stocks and corporate bonds)

Securities Lending

(stocks and corporate bonds

Software Licensing

(used by brokerage

Houses and other

market participants)

OTC Derivatives

(registration and collateral

management)

31


BM&FBOVESPA Costs

Seg. BOVESPA – Custody

32

Custody - Account Maintenance

Account without movement or position

Account with movement or position of Equities Market assets

Fee on the amount in custody*

from BRL 0 to BRL 1,000,000.00

from BRL 1,000,000.01 to BRL 10,000,000.00

from BRL 10,000,000.01 to BRL 100,000,000.00

from BRL 100,000,000.01 to BRL 1,000,000,000.00

from BRL 1,000,000,000.01 to BRL 10,000,000,000.00

starting from BRL 10,000,000,000.01

BRL3.00

BRL6.90

1.30 bps

0.72 bps

0.32 bps

0.25 bps

0.15 bps

0.05 bps

Note:

*This fee is not charged for nonresident investors.

* Fee exemption for custody positions of up to BRL300,000.00 will be maintained


33

High Frequency Trading - HFT

New Products Pipeline

New pricing policy (both segments)

Main Characteristics

• Differentiated fees by tier only for day trades transactions executed by a registered HFT

• A HFT Committee created to approve and monitor the HFTs

• The new pricing policy was implemented in Nov’10

Bovespa Segment

• In the Bovespa Segment, different tiers were created for individuals and non-individuals HFT investors

ADTV tier (BRL millions)

BM&F Segment

Individuals

Trading Fee

(bps)

Settlement

Fee (bps)

Total

Up to 4 (inclusive) 0.70 1.80 2.50

From 4 to 12.5 (inclusive) 0.50 1.80 2.30

From 12.5 to 25

(inclusive) 0.20 1.80 2.00

From 25 to 50 (inclusive) 0.05 1.75 1.80

Above 50 0.05 1.55 1.60

ADTV tier (BRL millions)

Non-individuals

Trading Fee

(bps)

Settlement

Fee (bps)

Total

Up to 20 (inclusive) 0.70 1.80 2.50

From 20 to 50 (inclusive) 0.50 1.80 2.30

From 50 to 250

(inclusive) 0.20 1.80 2.00

From 250 to 500

(inclusive) 0.05 1.75 1.80

Above 500 0.05 1.55 1.60

• In the BM&F Segment, the 70% flat discount was replaced by a volume tiered based discount, only for day trades,

divided into trading and registration fees


BOVESPA Segment: foreign investment flow

Monthly Net Flow of Foreign Investments* (in BRL billions)

9.1

10.0

6.1

5.5

5.2

3.4 3.8 4.2

2.5

0.5

0.3

5.8

1.5

7.3

4.4

2.1

1.7

0.7 0.8

0.4

3.4

2.1

1.4

(1.6)

1.9 2.2 (0.4)(0.2)

0.4 1.0 (2.4)

7.2

(0.6)

(1.5)

(0.1)

(0.6)

(1.3)

*Includes regular trades and public offering; updated until January 31, 2012.

34


Operational highlights: investor s participation in Total Volume

BM&F Segment (Investor’s Participation in Total Volume)

2% 2% 2% 3% 3% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2%

1% 2% 1%

7% 7% 9% 8% 8% 4% 4% 4% 3% 3% 4% 4% 5% 5% 5% 5% 5% 5% 3% 5%

12% 15% 17% 19% 20%

22% 23% 19% 19% 20% 20% 24% 23% 25% 26% 27% 25% 23% 16% 23%

24% 25% 23% 23% 24% 30% 33%

31% 31% 32% 33% 31% 31% 33% 35% 32% 34% 34%

34%

32%

56% 51% 49% 48% 45% 42% 38% 45% 44% 42% 41% 38% 39% 35% 32% 35% 35% 36% 46% 39%

2005 2006 2007 2008 2009 2010 2011 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12

Central Bank Companies Individuals Foreign Investors Institutional Investors Financial Institutions

Bovespa Segment (Investor’s Participation in Total Value)

2% 2% 2% 3% 2% 2% 2% 2% 2% 2% 1% 3% 1% 1%

12% 10% 10% 8% 7% 8% 9% 8% 9% 8% 10% 8% 9% 8% 10% 1% 2% 1% 2%

8% 9% 8% 9%

2% 7%

1%

33% 36% 35% 35% 34% 30% 35% 35% 34% 32% 34% 34% 35% 33% 37% 34% 36% 35% 39%

37%

27% 27% 30% 27% 26% 33% 33% 34% 33% 35% 34% 33% 33% 35% 32% 34% 33% 33% 32%

33%

25% 25% 23% 27% 31% 26% 21% 22% 22% 23% 21% 22% 21% 24% 20% 23% 20% 22% 18% 21%

2005 2006 2007 2008 2009 2010 2011 Jan-11 Feb-11 Mar-11 Apr-11 May-

11

Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12

Individuals Institutional Investors Foreign Investors Financial Institutions Companies Others

35


Investment Funds

AUM Evolution (in BRL billions)

657

11%

Equities

Fixed Income

861 899

10% 11%

1,070

11%

1,301

15%

1,513

22%

1,375

14%

1,703

18%

1,787

18%

1,899

15%

Percent of Equity Fund Assets

2002 2003 2004 2005 2006 2007 2008 2009 2010 Nov/11

Worldwide

Brazil

Equity

funds

39%

Equity

funds

15%

Source: ANBIMA and Investment Company Institute – ICI (2Q11).

36


Price Earnings Estimated

P/E

1,100

1,050

1,000

0,950

0,900

0,850

0,800

0,750

0,700

0,650

0,600

jan-10 fev-10 mar-10 abr-10 mai-10 jun-10 jul-10 ago-10 set-10 out-10 nov-10 dez-10 jan-11 fev-11 mar-11 abr-11 mai-11 jun-11 jul-11 ago-11 set-11 out-11 nov-11 dez-11 jan-12

Ibovespa/Dow Jones Ibovespa/S&P 500

Source: Bloomberg

37


SUSTAINABILITY

38


BM&FBOVESPA Sustainability Mission

BM&FBOVESPA’s Sustainability Mission

“Support, promote and practice the concepts and actions towards economic,

social and environmental responsibility with the purpose of contributing to

sustainable development”

Novo Valor BM&FBOVESPA

Program created in 2010 to guide sustainability actions of

BVMF.

Goal

Induce and promote the sustainable development of the

BM&FBOVESPA and the capital market, involving all audiences,

including investors, companies and brokerages.

39


BM&FBOVESPA Sustainability Program

Working in four dimensions

40

1. Natural Resources Mgt

• GHG Inventory

• Materials recycling program

• Ecoefficiency

• Green IT

• Member of Carbon Disclosure Project South America

• Board of Empresas pelo Clima, FGV

4. Stakeholder Engagement

• Instituto BM&FBOVESPA

• Stakeholders

• Global Compact Signatory (1 st exchange)

• PRI Signatory (Principles for Responsible Investment)

• Organization Stakeholder GRI (Global Reporting

Initiative); Member of Board for GRI Brazil

2. Governance

• Novo Mercado

• Advisory Boards

• Sustainability Committee

• Sustainability Comission

3. Products and Services

• Indexes: ISE, ICO2 and IGC/IGCT

• Carbon Market

• Em Boa Companhia (program with companies)


3Q11 EARNINGS

41


3Q11 highlights

Focus on cost control and return to shareholders

Net Revenues: R$494MM(3Q10: R$489MM)

(up 0.9%)

Adj Expenses. 1 : R$136MM (3Q10: R$146MM)

(down 6.6%)

Adj Net Income. 2 : R$400MM (3Q10: R$389MM)

(up 2.7%)

Financial and Operational highlights

• Volumes growth (3Q11 vs. 3Q10): 15.5% higher in BM&F seg and 11.7% in

BOVESPA seg

• HFT hits all-time high on record: 7.8% in BM&F seg and 10.3% in BOVESPA seg

• Shareholder return: 9M11 dividends and buybacks reached R$1.3 bn

(~ R$0.65 per share). In 3Q11:

• Dividends: R$233.6 million, 80% of 3Q11 net income

• Buybacks: R$250 million (27.3 million shares)

• Budgeted OPEX and CAPEX for 2011 revised down

Adj EBITDA 3 : R$356MM(3Q10: R$344MM)

(up 3.4%)

Adj EBITDA Margin: 72.1% (3Q10: 70.4%)

Adj EPS: R$0.205(3Q10: R$0.194)

(up 5.9%)

Strategic Projects

• New fee structure eliminates previous cross-subsidies, strengthens

competitive position and aligns with international peers

• Derivatives module for the new multi-asset platform (PUMA Trading System)

successful implementation of the derivatives module

• Clearing integration: development of the technology infrastructure

• Market making for options on single stocks: ongoing market making for

options on four single stocks and options on IBOVESPA

1

Excludes stock options plan, depreciation, allowance for doubtful accounts, and tax on dividends from CME Group. 2 Excludes deferred liability recognized in correlation

with temporary differences from amortization of goodwill for tax purposes, the impact of the stock options plan and the investment in associate (CME Group) accounted for

under the equity method of accounting, net of taxes. 3 Excludes stock option plans costs .

42


2012 Budgets

Commitment to cost control

Adjusted Operating Expenses - 2012 Budget

CAPEX – 2012 Budget

• 2012 Budget: between R$580 million and R$590 million

• Maintenance of headcount

• Steadily effort to reduce other expenses lines

R$ millions

544

2012 budget in the same range of 2011

590


580

590


580

• 2012 budget: between R$230 million and R$260 million

• Continuity of IT investments

• Equities segment of PUMA Trading System

• New Data Center

• Clearings integration

• New OTC platform

• Improvements in infrastructure

R$ millions

268

210


180

260


230

2010 2011e 2012e

2010 2011e 2012e

1

Adjusted Expenses exclude depreciation, stock option program, provisions and tax on dividends from CME.

43


BOVESPA Segment Performance

Higher Volumes: increased market volatility and HFT activity growth

44

3Q11 Volumes

• ADTV surged 11.7% over 3Q10

• Greater HFTs share of overall volume

(mainly foreigners, 3Q11 volume soared

87% from 2Q11)

• Market volatility positively impacted

trading volumes

10,00

8,00

6,00

4,00

2,00

0,00

ADTV and Margin

6.16 6.11 6.02 5.86 5.71

5.9

6.8 6.7 6.2 6.6

3Q10 4Q10 1Q11 2Q11 3Q11

ADTV (R$ billions)

Margin in bps

HFT: ADTV and share of trading volume

Average market capitalization and Turnover velocity

10.3%

48%

0,0

1,329.1

7.4%

0,0

6.1%

0,0

898.6

4.3%

814.5

835.1

0,0

87%

318.6 447.3

0,0 532.9

0,0 160.0

205.0 184.1 174.6

181.5

0,0

191.4 290.8 267.2 319.3

-

Nov-Dec/10 1Q11 2Q11 3Q11

retail - day trading (BRL millions)

local institutions - day trading (BRL millions)

fgn inv - day trading (BRL millions)

% of overall market

3,5

3,0

2,5

2,0

1,5

1,0

0,5

-

160,0%

140,0%

120,0%

100,0%

80,0%

60,0%

40,0%

20,0%

0,0%

9.8 p.p.

60.1% 61.8% 62.1% 59.7%

69.5%

2.3

2.5 2.5 2.5 2.2

3Q10 4Q10 1Q11 2Q11 3Q11

Average Market Capitalization (BRL trillions)

Turnover Velocity

7

5

3

1

-


BM&F Segment Performance

Well positioned to capture growth opportunities

3Q11 Volumes

• Overall ADTV up 15.5% over 3Q10

• Higher volumes in BRL interest rate contracts

• Record HFTs volumes, surged 67% from 2Q11

• Volumes traded in mini-sized contracts and

stock index derivatives soared 71% and 41%

from 2Q11, respectively)

1,30

1,20

1,10

1,00

0,90

0,80

0,70

0,60

0,50

0,40

ADTV in (thds of contracts) and RPC (in R$)

1.17

1.13

1.10

1.11

1.04

2,866

2,428 2,616

2,670 2,805

317

293

469

422

407

286

491

481

543

525

1,661

1,833

2,127

1,720

1,810

3Q10

4Q10

1Q11

2Q11

3Q11

Interest Rates in BRL FX Rates Others RPC

HFT: ADTV (thds of contracts) and share of ADTV (%)

ADTV : Mini-sized and stock index (in thds of contracts)

BRL Interest rate contracts FX contracts % in total ADTV

Index-based contracts

Mini-sized contracts 7.8%

420.3

67%

4.6% 5.0%

5.0% 178.7

251.4 3.9% 251.3

197.7 211.5

93.4

94.8 68.2

82.7

83.6

37.7

45.3

39.3 77.3

43.5

148.3

70.5

67.0 101.1

4.9 42.5 17.1 9.8 24.4

3Q10 4Q10 1Q11 2Q11 3Q11

156

143

101

91

84 89 88

77 78 77

3Q10 4Q10 1Q11 2Q11 3Q11

Mini Contracts

Stock Indices

45


Revenues and Expenses Details

Consistent growth of “other revenues” and focus on costs controls

46

Revenues Breakdown – 3Q11

Expenses Breakdown – 3Q11

Trd. /Sttmnt

– BM&F seg.

Other

revenues 17%

38%

38%

45%

Trd. /Sttmnt

– Bovespa

seg.

Marketing

Third Party

Serv.

Depr./ Am.

Other

14%

4%

7%

12%

15%

48%

Personnel

Data

processing

R$ millions 3Q11 3Q10

Change %

3Q11 x 3Q10

Gross Operating Revenues 547.1 544.1 0.6%

BOVESPA Seg. (trd. and sttmnt.) 248.6 274.8 -9.5%

Fees from trading and sttmnt. transactions 244.9 232.9 5.2%

Other (including public offering sttmnt.) 3.7 41.9 -91.1%

BM&F Seg. (trd. and sttmnt) 205.2 186.8 9.9%

Other operating revenues: 93.3 82.5 13.1%

Depositary and custody 22.9 21.4 6.6%

Securities Lending 19.8 12.7 56.1%

Market data sales 16.2 15.4 5.7%

Listings 11.2 10.9 2.6%

Other 23.1 22.0 5.0%

(In R$ millions)

167.6

15.1

5.5

145.8 159.0

Costs Control

Projects re- prioritization

188.7 188.7

9.4 166.8 169.6

18.9

24.5

22.3

10.1 8.5

10.1 20.7

140.6 143.7 136.3

3Q10 4Q10 1Q11 2Q11 3Q11

Adjusted Operating Expenses Depreciation Stock option Others


Revenues: 3Q11

BOVESPA Segment (45% of total)

3% 13%

84%

Cash Market

Forward Market

Options Market

Market / Product / Service

Cash market

Forward Market

Options Market

In bps

Fee Model

BM&F Segment (38% of total)

30%

13% Interest Rate BRL

FX

Others

57%

Interest Rate

Exchange Rates (FX)

Indices

Commodities

Fee per contract

Other Revenues

17%

Depository and custody: 4%

Securities Lending: 4%

Vendors: 3%

Listing: 2%

Trading access: 2%

Fixed cost: R$6,90 + additional fee

25 bps per year (open interest)

Fixed fee

Annual fee: based on the social capital

Fixed fee


Revenues Breakdown: September 2011

Cash Equity - trading

8,5%

Others 18,6%

Cash Equity - post-trading

28,0%

Derivatives (BM&F)

38,0%

Equity Forward and

Options - trading and

post-trading 6,9%


Depreciation & Personnel Expenses

Focus on cost control and improvements in processes

Personnel Expenses

Adj. Personnel Stock Options

90.3

97.5

88.2

71.7 9.4 24.5 10.1

5.5

(In R$ millions)

81.0

8.5

80.9

66.2

72.9 78.0 72.4

3Q10 4Q10 1Q11 2Q11 3Q11

Depreciation

22.3

(In R$ millions)

3Q11 vs. 3Q10: up 12.9%

• Annual bargain with union of around 7%

• 15% increase in average headcount (mainly in IT and

business development, in line with growth strategy)

• There was no headcount increase over 2011

3Q11 vs. 2Q11: 8.2% lower

• Advances in the allocation of personnel expenses related

to projects increased the amount capitalized in 3Q11 to

R$8.4MM (R$5.5MM in 1Q11 and R$5MM in 2Q11); in

addition to reversal of R$3.2MM recorded over 1H11

• Reduction in Profit sharing provisions of around

R$2.9MM due mainly to market conditions

15.1

18.9

6.8

15.5

6.8

10.1

20.7

3Q11 vs. 3Q10: up 37.3%

• Growth resulting from higher CAPEX in 2010/11

3Q11 vs. 2Q11: up 104.8%

• Due to improvements in projects accounting processes

(R$6.8MM reversion reduced 2Q11 depreciation

expenses)

3Q10 4Q10 1Q11 2Q11 3Q11

49


Financial Highlights

Commitment to shareholder returns

Cash and Financial Investments

(in R$ millions)

3Q11

4Q10

284

1,270 468

269

1,487

959 496

1,712

3,508

3,435

Financial Income

• R$82.7 million in 3Q11: up 10.3% over 3Q10

• Financial Income: R$102.0 million, a 9.9% increase

over 3Q10, due to higher average interest rates paid

on interest-earning investments

• Financial Expenses: R$19.4 million, compared to

R$17.9 million in the 3Q10, due mainly to the debt

interest

Market participants cash collateral and others*

Restricted funds

Subsidiaries**

Available funds

Investments (CAPEX) – 9M11: R$115MM

(in R$ millions)

Shareholder Returns (Payouts and Buyback Program)

(in R$ millions)

BuyBack

Payout

685.5

29

44 42

227.7

216.6 235.3

106.1

233.6

250.4

584.2

R$1,269.7

~R$0.65 per share

1Q11 2Q11 3Q11

1Q11

2Q11

3Q11

9M11

*Includes collaterals pledged by participants in the form of cash, receivables and rights in securities under custody , as well as payouts still undisbursed

** Includes third party collaterals (R$142 million in the 4Q10 and R$119 million in the 3Q11) and restricted funds (R$11 million in the 4Q10 and in the 3Q11) at Banco BM&F

50


Strategic Projects

Growth initiatives and business model strengthening

51

Multi-asset trading platform (PUMA Trading System):

State of the art in trading technology and technological independency

Derivates module successfully implemented in 2H11

Equities market to be concluded in 2H12

Improvement to Fee Structure

Strengthening the competitive position, eliminating cross-subsidies and aligning with international

peers

Delivered: i) HFT discount policies in 2010; ii) rebalancing of trading and post-trading fees in 2011

Integration of the four BM&FBOVESPA Clearinghouses – efficiency and competitive advantage

Pos trading at the beneficial owner level – unique model among the major international markets.

Contract signed with Cinnober for new clearing system

The project development will occur throughout 2012. Integrated market testing and the start of

implementation of the new system in production are forecasted to occur in 2013

Market Making for Options on Single Stocks: 4 stocks and Ibov index already launched

Index cross listing arrangements with the CME Group and BRICS countries 'exchanges

ETFs: two new ETFs recently launched (totaling 10) growth in trading volumes

OTC: development of a new platform (contract signed with Calypso)


52

Delivering Strategic Priorities

Consistently increasing

revenues and net income

• Capture macro growth opportunities

• Despite challenging short-term macro conditions, the Brazilian

capital markets offer good opportunities from which BVMF can

benefit in the long term

Strengthening

competitive position

• New trading System : PUMA Trading System (State of the art in

IT): Derivatives module implemented

• Increasing capital efficiency by integrating clearing facilities

• Rebalancing the fee structure for trading and post trade activities –

first stage completed; further studies ongoing

Investing in products and

partnerships

• Establish a diversified product mix as a driver of long term growth

• Partnership with CME delivers innovation

• New Products: market makers, cross listing, ETFs and HFT

Consistently delivering

sound financial results

• Focus on OpEx Control – 2011 Opex Budget revised down

• Maximizing shareholder returns: high return combining payouts

and stock buybacks


53

Income Statement Summary

R$ millions 3Q11 3Q10

Change

3Q11 / 3Q10

2Q11

Change

3Q11/2Q11

Operating Revenues Gross 547.1 544.1 0.6% 521.3 5.0%

Net Operating Revenues 493.7 489.3 0.9% 467.6 5.6%

Operating Expenses (169.6) (167.6) 1.2% (166.8) 1.7%

Operating Income 324.1 321.8 0.7% 300.9 7.7%

Equity accounting 28.3 23.1 22.3% 22.1 28.1%

Financial Income 82.7 74.9 10.3% 70.8 16.7%

Income before Taxes 435.1 419.9 3.6% 393.8 10.5%

Net Income* 292.0 293.0 -0.3% 294.2 -0.7%

EBITDA 347.5 338.9 2.5% 313.2 10.9%

EBITDA Margin 70.4% 69.2% 113 bps 67.0% 340 bps

Adjusted Net Income 399.6 389.0 2.7% 409.2 -2.3%

Adjusted earnings per share (in R$) 0.205459 0.194071 5.9% 0.208948 -1.7%

Adjusted EBITDA 356.0 344.3 3.4% 323.3 10.1%

Adjusted EBITDA Margin 72.1% 70.4% 174 bps 69.1% 297 bps

Adjusted Operating Expenses (136.3) (145.8) -6.6% (143.7) -5.2%

* Attributable to BM&FBOVESPA´s Shareholders


54

Reconciliation of GAAP to Adjusted Net Income

3Q11 GAAP and adjusted net income reconciliation

(in R$ millions)

292.0

8.5

124.7

(25.7) 399.6

Gaap net income Stock options Deferred liability Equity Accounting Adjusted net

income

R$ millions 3Q11 3Q10

Gaap net income*

(+) Stock options program

(+) Deferred tax liabilities

(-) Equity accounting (net of taxes)

Adjusted net income

Change

3Q11 / 3Q10

2Q11

Change

3Q11/2Q11

292.0 293.0 -0.3% 294.2 -0.7%

8.5 5.5 55.6% 10.1 -15.7%

124.7 111.6 11.7% 124.7 -

25.7 21.1 21.4% 19.9 29.2%

399.6 389.0 2.7% 409.2 -2.3%

*Attributable to BM&FBOVESPA shareholders


Deferred Tax Liabilities Accounting

No impact on cash flow

55

(in R$ millions)

Deffered income tax

and social contribution

Deferred tax liabilities

111 99

Deferred tax credits

142

+18

124 124,7 124,7

-13 -26

1Q11 2Q11 3Q11


56

Reconciliation of Adjusted Operating Expenses

R$ millions 3Q11 3Q10

Change

3Q11 / 3Q10

2Q11

Change

3Q11/2Q11

Total Expenses 169.6 167.6 1.2% 166.8 1.7%

(-) Depreciation 20.7 15.1 37.3% 10.1 104.8%

(-) Stock options plan 8.5 5.5 55.6% 10.1 -15.7%

(-) Tax related to CME dividends 2.6 2.0 31.9% 2.2 18.1%

(-) Provision for doubtful account 1.4 0.8 -266.7% 0.6 146.4%

Adjusted Expenses 136.3 145.8 -6.6% 143.7 -5.2%


Balance Sheet

In R$ millions

57

ASSETS 09/30/2011 12/31/2010 LIABILITIES AND SH. EQUITY 09/30/2011 12/31/2010

Current assets 2,198.4 2,547.6 Current liabilities 1,605.2 1,416.2

Cash and cash equivalents 139.5 104.0 Collateral for transactions 1,222.3 954.6

Financial investments 1,861.8 2,264.4 Others 382.9 461.6

Others 197.1 179.2 Non-current liabilities 2,254.0 1,798.7

Non-current assets 20,946.6 20,086.4 Financing 1,125.4 1,010.1

Long-term receivables 1,683.6 1,216.8 Deferred Inc. Tax and Social Contrib. 1,061.4 732.1

Financial investments 1,506.8 1,066.9 Others 67.2 56.6

Others 176.8 149.9

Investments 2,618.0 2,286.5 Shareholders' equity 19,285.8 19,419.0

Property and equipment 352.4

367.1

Capital 2,540.2 2,540.2

Capital reserve 16,679.7 16,662.5

Intangible assets 16,292.7 16,215.9 Others 49.4 200.0

TOTAL ASSETS

Minority interest in subsidiaries 16.4 16.3

TOTAL LIAB. AND SHAREHOLDERS'

23,145.0 22,634.0 EQUITY 23,145.0 22,634.0

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