Investor relations. Monthly presentation PUBLIC INFORMATION PUBLIC INFORMATION SAO PAULO, DECEMBER

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1 Investor relations Monthly presentation SAO PAULO, DECEMBER

2 Forward Looking Statements 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 B3 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 B3 performance. The factors that might affect performance include, but are not limited to: (i) market acceptance of B3 services; (ii) volatility related to (a) the Brazilian economy and securities markets and (b) the highly-competitive industries in which B3 operates; (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 B3 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 B3 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 B3 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. 2

3 B3 Brasil, Bolsa, Balcão The infrastructure that develops the market Diversified and vertically integrated model Single infrastructure integrated to the financial system Broadly held corporation with solid governance R$58 billion in market capitalization¹ Revenue of R$4.4 billion in 2017² More than R$12.0 billion distributed to shareholders in 10 years ¹ Updated to November 30, th largest exchange by market value. ² Combined information. 3

4 B3 Brasil, Bolsa, Balcão Agenda Complete multi-asset and vertically integrated model: highly critical to users Diversified revenue sources in high growth markets Operational excellence, innovation and client focus: long term drivers of value Solid financial profile and commitment to returning cash to shareholders 4

5 Integration with market participants One-stop-shop adding value in every step of the financial market value chain The infrastructure offered by B3 integrates in several points with market participants systems, supporting a significant number of their core activities Financial Listed (equities, derivatives spot FX and others) Trading Central counterparty and settlement Central depository Institutions Brokerage OTC derivatives Registration Central counterparty and settlement houses Asset Corporate bonds Trading / Registration Central counterparty and settlement Central depository managers Issuers of financial Banks funding instruments Registration Settlement Central depositary Trade repository securities Loans & liens Central depositary (vehicles and real estate) Liens database and loans transmition 5

6 B3 Brasil, Bolsa, Balcão Agenda Complete multi-asset and vertically integrated model: highly critical to users Diversified revenue sources in high growth markets Operational excellence, innovation and client focus: long term drivers of value Solid financial profile and commitment to returning cash to shareholders 6

7 Diversified revenue sources Diversified businesses with different revenue drivers Revenue breakdown (2017) (Combined information; B3); (R$ Millions) BM&F (derivatives) Bovespa (equities) Cetip Securities (OTC derivatives and banking instr.) Main drivers Interest rate and FX volatility Risk appetite and sophistication of investors Credit outstanding Cross-border transactions (funding and export/import) Outlook for the economy and companies Volatility Interest rate level Risk appetite and sophistication of investors Credit outstanding and risk appetite Volatility and risk aversion Interest rates (trade-off: new volume registered vs. growth of growth of volume outstanding) Cetip Liens & loans Vehicle sales and financing penetration Electronification of processes Other Fees for packages of services, maintenance or registration/custody volume (market data, listing and depository) Risk appetite of investors (securities lending) 7

8 BM&F segment Exposure to volatility and FX rate Volume and price drivers Average daily volume (ADV) Interest rate and FX volatility Risk appetite and sophistication of investors Revenue breakdown ADV (millions) Revenue (R$ millions) Credit outstanding Cross-border transactions (funding and export/import) Revenue per contract (RPC) Each group of contract has a RPC (revenue per contract) set in R$ or US$ (mix effect) RPC differs by maturity (interest rate contracts) Discounts for day trades, HFTs and options on futures Discounts by volume tiers for all clients RPC (R$) Growth drivers = Regulatory framework Post-trade Identification of the final beneficial owner OTC derivatives Must be registered. May be with or without a central counter-party (CCP) Credit to GDP 1 (% of GDP; Source: Central Bank of Brazil) Government debt composition (%; Source: Brazilian Treasury) ¹ Updated to Oct18. 8

9 Bovespa segment Pro-cyclical model of revenues Volume and price drivers Average daily trading value (ADTV) Outlook for the economy and companies Volatility Revenue breakdown Market Cap (R$ trillion) and Turnover Velocity (%) Revenue (R$ millions) Interest rate level Risk appetite and sophistication of investors Margin Basis points on the financial volume traded Different fees for cash equities and equity derivatives (options and forwards) Regular discount for day trades and local institutional investors; and for the whole market when ADTV exceeds R$9 billion ADTV (R$ billion); Margin (bps) Growth drivers = Regulatory framework Trading Market formally open for fragmentation since 2007, but dark pools, MTFs and internalization are prohibited (competition is possible only between exchanges) Post-trading Identification of the final beneficial owner Market Cap to GDP (%) and # Companies (Source: World Bank) BRA 17 BRA 07 AUS 17 IND 17 CHN 17 JPN 17 EU 17 USA % 71% 78% 98% 90% 114% 128% 166% Investment Funds 1 (R$ billions; % of total; Source: ANBIMA) Pension Funds 2 (R$ billions; % of total; Source: ABRAPP) ¹ Updated to Oct 18. ² Updated to May 18 9

10 Cetip Securities segment High predictability and resilience Volume and price drivers Revenue breakdown Volumes Credit outstanding and risk appetite Registration: volume (R$ trillion) and average price (bps) Utilization: avg # of clients (thousand) and avg price LTM (R$ thousand) Revenue (R$ million) Volatility and risk aversion Interest rates (trade-off: new volume registered vs. growth of volume outstanding) Pricing Basis points on the financial volume registered and/or under custody Maintenance (CSD/TR): volume (R$ trillion) and average price (bps/month) Transaction: # of transactions (million) and avg price (R$) Monthly systems utilization fee Transaction fees (vary according to volume, settlement type and time of the transaction) Price differentiation by type of instrument Growth drivers Bank Funding (%; Source: Central Bank of Brazil) Credit outstanding 2 (R$ billion; Source: Central Bank of Brazil) Regulatory framework 12% 13% 13% 14% 13% Others Securities and OTC derivatives Mandatory registration and custody in central depository 13% 13% 12% 13% 13% 32% 36% 40% 36% 31% On-lending Open market Funding instruments issued by banks Mandatory registration in a central registration system 18% 15% 14% 16% 19% 19% 19% 17% 17% 19% Time dep (local) Savings deposit 6% 5% 4% 4% 4% Demand deposit ¹ ¹ Updated to Dec Updated to Oct 18 10

11 Cetip Liens and Loans segment Tied to the economic cycle Volume and price drivers Revenue breakdown Volume Vehicle sales and financing penetration Electronification of processes Financing of Vehicles (millions; Source: Cetip) Total Revenue (R$ millions) Pricing Fees in R$ for inclusion of liens in SNG (National Liens Database) Fees for financing contract registered Fees per search conducted in the system or per report requested (market data) Regulatory framework Loans (vehicles) Mandatory registration of auto loans, as determined by Central Bank rules Growth drivers Monthly default 1 (%; Source: Central Bank of Brazil 1 ) Selic interest rate 2 (%;Source: Central Bank of Brazil; FOCUS²) ¹ Updated to Oct 18, ² FOCUS report (market survey) of Nov

12 Other Listing¹ Market Data¹ Securities lending Depository Other revenues Stable products and services with growth potential Fixed monthly fee per investor / account¹ Basis points on the market value deposited (larger accounts) Tesouro Direto (basis points on the value under custody) Basis points on the financial value of open positions Other 26% Depository 34% Market activity level Investors risk appetite Listing 9% R$670 mn 2017 Monthly fee per user (client) Clients profile and services used FX rate (R$/US$) Market Data 16% Securities lending 15% Annual listing fee charged from listed companies and other issuers Size of companies (capital stock) BM&FBOVESPA Settlement Bank (back-office services) Market participant access (services packages) ¹ Fees adjusted annually by inflation. 12

13 B3 Brasil, Bolsa, Balcão Agenda Complete multi-asset and vertically integrated model: highly critical to users Diversified revenue sources in high growth markets Operational excellence, innovation and client focus: long term drivers of value Solid financial profile and commitment to returning cash to shareholders 13

14 IT Infrastructure investments Assuring the smooth functioning of markets R$1.5 billion invested in the last 5 years Operational excellence and highquality services are important competitive advantages Combined investment (R$ millions; Combined information) Main infrastructure projects deployed over recent years ( ) PUMA Trading System: low-latency and high-capacity multi-asset and multi-market trading platform B3 Clearinghouse: single infrastructure and risk / margin model for derivatives (listed and OTC) and equities New Data Center: scale to host own infrastructure and clients (colocation) Enhancements to IT infrastructure Moving and consolidation of Data Centers Mortgage registration platform (2018 Budget) Trading infrastructure moving PUMA (DR site) Definitive facilities structure Market Data 14

15 Roadmap of products Innovation and client centricity BVMF SEGMENT nd SEMESTER COPOM Option Line 5.0 pre-trading risk system Enhancements to CORE: masters accounts Single-stock futures FX futures (US Dollar pairs) Micro S&P 500 futures Options on DI futures + VTF Mini US Dollar options Sec Lending for BDR NP Acceptance of autonomous Market Maker st SEMESTER 2 nd SEMESTER Sec Lending trading screen Settlement cycle - T+2 imercado registration/pre-matching New PUMA functionaities imercado Alocation/API Dollar Optimization Brazilian Treasury Securities Lending & Repo Collateral acceptance Inter. ETF and BDR NP Line Clearing Average price allocation (D+2) Fixed Income ETF Sec. Lending New PUMA functionalities International Futures Index UTVM SEGMENT Depositary services delivery 1 Green bonds Depositary services delivery 2 LIG covered bonds Receivable (credit rights) OTC derivatives with CCP Securitization improvments Improvement to funds Platform Liens ANALYTICS Up2Data debentures DVA datawise New B3 website MVP API Datawise Market data: new products 15

16 B3 Brasil, Bolsa, Balcão Agenda Complete multi-asset and vertically integrated model: highly critical to users Diversified revenue sources in high growth markets Operational excellence, innovation and client focus: long term drivers of value Solid financial profile and commitment to returning cash to shareholders 16

17 Financial robustness Summary of income statement¹ Net revenues Adj. expenses² Adj. EBITDA³ Recurr. net income (R$ million; % of change) (R$ million; % of change) (R$ million; % of change) (R$ million; % of change) +31.8% +27.5% +46.7% +16.7% Revenue growth, despite macro crisis in Brazil Expenses growth below inflation (Average per annum: 3.9%) Strong cash generation Return of major part of earnings to shareholders ¹ Combined managerial information. ² Adjusted to (i) depreciation and amortization; (ii) long-term stock-based compensation (principal + payroll taxes); (iii) integration-related expenses; (iv) revenue-linked expenses; and (iv) provisions. ³ Adjusted to: (i) integration-related expenses (ii) non-recurring provisions and (iii) other non-recurring items. 17

18 Focus on expense control Historical adjusted expenses¹ (Combined information; R$ millions) CAGR Total 3.9% IPCA² 6.4% 2017 adjusted expenses breakdown (Combined information) ¹Expenses adjusted to: (i) depreciation and amortization; (ii) long-term stock-based compensation (principal + payroll taxes); (iii) expenses connected to the business combination with Cetip; (iv) revenue-linked expenses; and (v) provisions. ² IPCA accumulated between 2012 and 2017 (Source: IBGE). 18

19 Appendix 19

20 B3 Brasil, Bolsa, Balcão The infrastructure that develops the market Mar/17 Founding of Bolsa Livre (BOVESPA's predecessor) Demutualization and IPOs of BOVESPA Hld and BM&F Demutualization of Cetip Acquisition of GRV by Cetip Merger approval and creation of B Start of Cetip activities 1986 Start of BM&F activities 2008 BM&F and BOVESPA Hld merger creation of BM&FBOVESPA 2009 IPO of Cetip May/16 Agreement between BM&FBOVESPA and Cetip (shareholders approval) 20

21 Management & Board of Directors Board of Directors Board of Directors Audit committee Nomination and Corporate governance committee Product & pricing committee Compensation committee Risk and financial committee IT committee Current BD composition Antônio Quintella (Chairman) Former CEO of CS Brasil and Americas; Portfolio Manager Luiz Nelson Guedes de Carvalho (Vice-Chairman) Former Central Bank and S. Commission Officer; Member of IIRC and CPC/IASB; Professor of Accounting; Chairman of Petrobras Edgar da Silva Ramos Partner of brokerage houses and former Chairman of Cetip Florian Bartunek Partner and CIO at Constellation Asset Management Guilherme Affonso Ferreira Founder and Partner of Teorema José Lucas Ferreira de Melo Former VP of Unibanco, Former auditor of PWC, Former Director of Cetip Laércio José de Lucena Cosentino Founder and CEO of TOTVS Luiz Antonio de Sampaio Campos Former Director of CVM; Lawyer Denise Pauli Pavarina Bradesco Executive Eduardo Mazzilli de Vassimon Director of Itaú and CRO of Itaú Holding José Berenguer Neto CEO of JP Morgan Brazil José Roberto Machado Filho Executive Officer of Banco Bandepe (Santander) and Former Director of Cetip Luiz Fernando Figueiredo Former Governor of the Central Bank; Portfolio Manager Independent members Linked to market participant 21

22 Management & Board of Directors Executive Board Chief Executive Officer GILSON FINKELSZTAIN Chief Operating Officer Chief Financial Officer Chief Product and Client Officer Chief Technology Officer CÍCERO VIEIRA DANIEL SONDER JUCA ANDRADE RODRIGO NARDONI Executive Director of the Financing Unit MARCOS FERREIRA 22

23 Corporate governance and ownership structure Broadly-held corporation with solid corporate governance structure Sound corporate governance practices Listed at Novo Mercado (voting shares only and other shareholders rights, transparency, etc.) Board of Directors: Majority independent, including the chairman (regulatory requirement) Other Board members are linked to market participants (not connected to controlling group or management) Board of Directors and its Committees have clearly-defined activities Management compensation aligned with Company s performance and strategic objectives, as well as with shareholders long-term interests Solid risk management and internal control structures and policies 10% 77% Capital World Investors BlackRock Funds Others 7% 5% 1% Oppenheimer Funds Treasury 23

24 Debt profile Cetip Lux 1 Loan Cetip Lux 2 Loan BVMF Debentures BVMF Notes Value USD 100 m USD 50 m R$3 bi USD612 m Issuance Aug/14 Sep/16 Dec/16 Jul/10 Amortization % Dec/18 - Maturity date Aug/20 Aug/19 Dec/19 Jul/20 Interest rates 3.50% 4.00% % CDI 6.47%¹ Interest payments Quarterly Mar and Sep Jun and Dec Jan and Jul ¹ Effective rate after tax for loans in foreign currency. 24

25 B3 - Business combination between BM&FBOVESPA and Cetip (cont.) Commitments undertaken with the regulators cash equities fees rebalancing Fees (bps) Current fees (before the rebalancing) Fees (bps) Fees after the Rebalancing Institutional Investors Other Investors Institutional Investors Other Investors Trading Trading CCP Post-trading (CCP and CSD) CSD Total Total The Rebalancing proposal described above is subject to adjustments depending on the results of the public hearing procedure. Furthermore, the Rebalancing should not be implemented if the arbitration mechanism described is triggered, in which case a price will be set for the transferring of securities within the CSD as a result of transactions cleared and settled by other FMI, subject to the regulatory agencies 25

26 B3 s Clearinghouses Safeguard Structures Robustness that assures market integrity B3 S.A Brasil, Bolsa, Balcao Clearing Risk Metrics Clearinghouses B3 (derivatives and equities) # of clearing members (CM) 67 Margins Total margins deposited (R$ bn) Confidence level (%) 99.96% At risk / close-out period Type of collateral eligeble for margins Margining system Margin calculation level Futures contracts 2-10 days; listed options 5 days; OTC derivatives 10 days; cash equity, forwards and securities lending 3-10 days Cash BRL, Brazilian government bonds, corporate bonds, gold, ETF, stocks, banks LC and CD, shares in selected funds, rural products notes and international securities CORE - CloseOut Risk Evaluation Calculates margin at the investor level (individuals who hold positions directly or funds). The clearing member's house position is deemed as an additional single client portfolio ¹ Besides B3 Clearinghouse, B3 owns and manages two other clearinghouses (Spot FX and Government Bonds) that represented only 0.3% of the total amount of collaterals pledged in B3 Clearinghouse. Updated to March 31,

27 B3 s Clearinghouses Safeguard Structures (Cont d) Robustness that assures market integrity B3 S.A Brasil, Bolsa, Balcao Clearing Risk Metrics Clearinghouses B3 (derivatives and equities) Clearing funds (CF) General approach for calibrating the size of the guaranty funds Waterfall order Default fund replenishment following a default Loss sharing powers Default experience The Clearing Fund is composed by variable contributions made by clearing members (proportional to its risk exposure at the CCP) and fixed contributions made by B3 1.Collateral deposited by the defaulting final investor; 2.Collateral deposited by the defaulting broker; 3. Collateral deposited by the defaulting clearing member; 4. The defaulting clearing member's contribution to the default fund; 5. The B3's contribution to the default fund; 6. The non-defaulting clearing members' contributions to the default fund; 7. B3 capital dedicated to CCP activities Maximum amount replenished by a CM over a 20 day period: 3 times the value of the fixed contribution requirement applicable. The amount deposited to replenish the fund can only be used to cover losses from defaults subsequent to the default which caused the use of the fund and its replenishment No None ¹ Besides B3 Clearinghouse, B3 owns and manages two other clearinghouses (Spot FX and Government Bonds) that represented only 0.3% of the total amount of collaterals pledged in B3 Clearinghouse. As Of March 31,

28 B3 Goodwill from the business combination of BM&F and Bovespa Status of the ongoing discussions Administrative level Tax year (notices received) Notional amount under discussion as of Sep 18 (R$ bn includes fines and interest) DRJ (local IRS) CARF (IRS appeal - lower chamber) CARF (IRS appeal - higher chamber) Judiciary (three levels) (11/29/2010) R$1.3 billion 10/21/2011 (partial impugnation) 05/09/2014 (3x3 votes) 04/05/2017 (4x4 votes) We are here (04/02/2015) R$2.6 billion 04/27/2016 (partial impugnation) 06/21/2017 (5x3 votes) We are here (09/21/2017) R$3.2 billion 08/03/2018 (partial impugnation) We are here 28

29 Funds Individuals Early signs of market sophistication Potential for revenue creation on several segments # Investors Mini contracts (in thousand) Individual accounts Depository (Equity) (in thousand) REITs 1 Hedge funds 1 ¹Source: ANBIMA. 29

30 Funding Contraction of public banks balance sheet induces growth of other funding instruments Value of debentures issued 1 (in R$ billion) Value of others intruments issued 1 (in R$ billion) ¹Source: ANBIMA. 30

31 Operational Performance 31

32 Volumes Bovespa segment Average Daily Trading Value ADTV (BRL billion) Average annual market cap (BRL trillion) Turnover Velocity² (12 months average) ¹ Updated to Nov/18. ² Ratio of cash equities trading volume to the overall market capitalization. 32

33 Volumes BM&F segment Average Daily Traded Volume ADV (Thousand of contracts) Revenue Per Contract RPC (BRL) ² ¹ nov'17 dez'17 jan'18 fev'18 mar'18 abr'18 mai'18 jun'18 jul'18 ago'18 set'18 out'18 nov'18 Int Rates BRL FX Equities Int Rates USD Commodities Mini Contracts OTC Total RPC ¹ Updated to Nov 18. ² As of 2016 it does not consider OTC volume Mini contracts were weighted in its respective standard contracts: Equities, FX and 33 Commodities.

34 Investor participation in volumes Bovespa segment BM&F segment ¹ Updated to Nov 18. ² Starting from 2016 excludes OTC data. 34

35 Volumes Cetip Securities segment Registration Volume (BRL trillion) Utilization Average number of clients (Thousand) Maintenance (CSD/TR) Volume (BRL trillion) Transactions Quantity (Thousand) 35

36 Volumes Cetip Liens and Loans segment Vehicles financed (Thousand) % Penetration (Vehicles financed / vehicles sold) Vehicles sold (Thousand) 36

37 Trading in ADRs of Brazilian companies Novo Mercado Launch (Dec. 2000) End of CPMF (Financial Transaction Tax) Sarbanes-Oxley Act (Jul. 2002) End of IOF Tax (2%) for foreign investors (Dec. 2011) Nov % 17.6% 5.5% 35.9% 76.9 % 41.0% Source: Bloomberg (in USD traded value of 35 companies with ADRs programs ) 37

38 3Q18 Earnings Presentation November 9 th, 2018

39 Forward Looking Statements 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 B3 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 B3 performance. The factors that might affect performance include, but are not limited to: (i) market acceptance of B3 services; (ii) volatility related to (a) the Brazilian economy and securities markets and (b) the highly-competitive industries in which B3 operates; (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 B3 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 B3 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 B3 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. 39

40 3Q18 highlights Operational 3Q18 3Q18/3Q17 Financial (R$ mn) 3Q18 3Q18/3Q17 BM&F Net revenue 1, % ADV (mn) % RPC (R$) % Adj. expenses % Bovespa ADTV (R$ bn) % Recurring EBITDA % Margin (bps) % Cetip Securities Recurring EBITDA margin % 84 bps Value oustanding (R$ tn) (CSD/Trade Repository) % Cetip Financing Financial result mn Vehicles financed (mn) % CS 1 market share (%) bps Recurring net income % 40 1 CS stands for Contract System. 2 See reconciliation in the slide 55 in the appendix. 3 See reconciliation on slide 56 in the appendix.

41 Revenue breakdown 3Q18 Solid performance in all business segment well balanced revenue diversification REVENUE (in R$ millions / % growth YoY) (Combined information; B3) +8.7% 41

42 BM&F segment Positive impact from FX rate (BRL / USD) depreciation REVENUE¹ (in R$ millions) +15.3% ADV 3 (in thousand of contracts) CONTRACTS 3Q17 3Q18 YoY Interest rates in BRL 2, , % FX rates % Stock indices % Interest rates in USD % Commodities % TOTAL 3, , % REVENUE PER CONTRACT 3 (in R$) 3Q18 HIGHLIGHTS Growth in stock indices contracts driven by HFTs and individual investors US Dollar appreciation versus BRL led to an increase in the RPC of USD-denominated contracts CONTRACTS 3Q17 3Q18 YoY Interest rates in BRL % FX rates % Stock indices % Interest rates in USD % Commodities % TOTAL % ¹ Revenue does not consider the revenue line foreign exchange of the BM&F segment, as reported in the financial statements note 20, which totaled R$4.8 million in 3Q18. ² Contracts priced in USD include FX rates, Interest rates in USD and part of Commodities. 3 Mini contracts volume were weighted in the respective standard contracts, impacting volumes and RPC of these contracts groups. 42

43 Bovespa segment Solid growth driven by higher market cap and turnover REVENUE¹ (in R$ millions) +13.8% ADTV (in R$ billions) AND MARGIN (in bps) MARKET CAPITALIZATION (in R$ trillions) AND TURNOVER VELOCITY (%) 3Q18 HIGHLIGHTS ADTV growth led by increase in market capitalization and turnover velocity 3% margin decrease explained by the mix of investors and markets (cash vs derivatives) and marginal discounts by volume ¹ Revenue does not consider the revenue line others of Bovespa Segment, as reported in the financial statements note 20, which totaled R$ 6.1 million in the 3Q18. 43

44 Cetip Securities segment Revenue resilience and recurrence REVENUE (in R$ millions) OPERATIONAL FIGURES +12.8% 3Q17 4Q17 1Q18 2Q18 3Q18 Monthly average value registered (in R$ trillions) 3Q18 HIGHLIGHTS Recovery in the value registered of OTC derivatives Value outstanding on which maintenance (CSD/TR) fees apply grew 16.5% Daily average value outstanding (CSD/TR) (in R$ trillions) Sharing expense synergies: full impact of discounts (R$7.6 1 million in the quarter, equivalent to 30% of the synergies captured) ¹The discounts related to sinergies are provisioned on a pro rata basis and the discount is effectively given on April each year. 44

45 Market-share of the Contracts System (in thousand) Vehicles financed (in thousand) Cetip Liens and Loans segment Recovery in the vehicles financing activity REVENUE (in R$ millions) OPERATIONAL FIGURES +29.2% 3Q17 4Q17 1Q18 2Q18 3Q18 1,310 1,370 1,312 1,324 1,381 3Q18 HIGHLIGHTS Changes in the Contracts System Model adopted in the states of São Paulo (Jan 18), Santa Catarina (Apr 18) and Pernambuco (Ago 18) positively impacted revenues (impact more than offset by additional revenue-linked expenses) 72.1% 65.2% 66.7% 63.0% 65.5% Services interrupted in Minas Gerais state since Sep 17 45

46 Adjusted expenses Continued focus on expense management ADJUSTED EXPENSES¹ (in R$ millions / % growth YoY) (Combined information; B3) Adjusted personnel² (+16.5%): mainly impacted by provisions for annual salaries readjustment, employees profit sharing and reduction of expenses capitalized as projects Data Processing (-9.5%): decrease in expenses with software + 9.5% Third-party 3 (+39.0%): increase in expenses with advisors and consulting services (excluding revenuelinked expenses) Others 4 (+1.6%) (in R$ millions and % of total adjusted expenses) 3Q (64.4%) 43.5 (17.4%) 10.2 (4.1%) 35.5 (14.2%) 3Q (60.5%) 48.1 (21.0%) 7.4 (3.2%) 35.0 (14.2%) ¹ Adjusted to (i) depreciation and amortization; (ii) long-term stock-based compensation (principal + payroll taxes); (iii) integration-related expenses; (iv) provisions and (v) revenue-linked expenses. ² Excludes the long-term stock-based compensation (principal + payroll taxes). ³ Excludes revenue-linked expenses. 4 Includes expenses with communication, maintenance, taxes, board and committee members compensation and others. 46

47 Financial highlights Solid cash position is required for clearinghouse safeguards CASH AND FINANCIAL INVESTMENTS (in R$ millions) (Combined information; B3) 3Q18 8,902 B3 s own cash position totaled R$6.2 bn in 3Q18 R$2.5 - R$3.0 billion to run the business 2Q18 8,039 Liquidity that supports the clearinghouses activity and general corporate needs 1Q18 7,212 Interest on capital (IoC) payment: 4Q17 7,510 Cash balance includes R$360 million in IoC already paid in Oct 18 Debt amortization: 3Q17 6,884 R$ 1.5 billion debt amortization in Dec 18 Third-party Total Restricted and unrestricted Third-party cash Not considered as B3 s own cash The Company earns interest on most of this cash balance ¹ Includes earnings and rights on securities in custody. ² Includes B3 Bank clients deposits. ³ Does not include investments in Bolsa Mexicana de Valores, Bolsa de Comercio de Santiago, Bolsa de Valores de Colombia, Bolsa de Valores de Lima and B3 Inova amounting to R$394.7 million at 3Q18 and R$10.0 million in other financial investments. See note 4 to the financial statements. 47

48 Financial highlights (cont.) Temporally higher financial leverage DEBT AMORTIZATION SCHEDULE (in R$ billions) Financial deleveraging and payout R$1.5bn in debt amortization scheduled for Dec 18 B3 expects to be able to reduce its financial leverage to 1x Gross debt / Rec. EBITDA (LTM) by the end of 2019 FINANCIAL LEVERAGE (in R$ millions) (in R$ millions) 3Q18 Gross debt 5,735 Recurring EBITDA (LTM) 3,180 Financial leverage 1.8x Payout ratio target for the period between 70% and 80% of the IFRS net income In the 9M18, pay-out ratio was 67.1% of IFRS net income 48

49 Appendix

50 Expenses details Impacts on financial expenses, taxes, personnel and others Income statement line Description Details Overseas investment and funding Financial expenses and taxes FX variation on Intercompany (B3 and Cetip Lux) funding and investments Impact of FX rate variation on the financial expense lines totally offset by the impact on the tax line In 3Q18 the impact was -R$23.2 million on financial expense and +R$23.2 million on the tax line Math: ~USD150 million * FX rate variation Expenses linked to market price of B3SA3 shares Personnel Other expenses Provision of payroll taxes on Long-term Incentive Plans granted to employees Mark-to-market of provisions for legal disputes involving the value of B3SA3 shares ~60% payroll taxes on the financial amount equivalent to the # of shares to be transferred to the beneficiaries In 3Q18, long-term stock-based compensation expenses rose 32.1% (B3SA3 shares rose 14.4%), from R$30.1 million in 3Q17 to R$39.7 million in 3Q18 Math (simplified): # of shares to be transferred¹ * market price of B3SA3 shares at the end of the quarter + adjustments to previous quarters Provision amount adjusted to the market price of B3SA3 shares at the end of the quarter In 3Q18, there was a R$15.3 million provision (B3SA3 shares rose 14.4%) Math: financial amount equivalent to 5,186,739 shares * market price of B3SA3 shares at the end of quarter (mark-to-market) ¹ Payroll taxes calculated only on the estimated financial value of the shares to be transferred in the next year. 50

51 Other revenues Solid performance of depository and securities lending 3Q18 REVENUE BREAKDOWN (in R$ millions / % of the total) (Combined information; B3) Other lines of business 3Q18 YoY Depository % Securities lending % 13.2% Market data % Listing % Bank - financial intermediation and bank fees % +7.0% YoY excluding other revenues Market participant access % Other % Total % 51

52 Combination-related Opex and Capex Budget of business combination-related expenses and investments Estimates on expenses and other impacts arising from the completion of the business combination with Cetip¹ (R$ millions) Q18 2Q18 3Q e Contractual commitments and other accounting impact Cetip s LT compensation and retention programs (cancelation of stock options and payroll taxes) Impairment / write-offs / provision for contractual fines Retention / severance programs approved in the AGM of 04/28/17² ~25.0 Advisors, consultants, branding ~10.0 Total ~35.0 ¹ In comparison with the numbers disclosed in 1Q17, some expenses were reclassified between lines in the table and from expenses related to the combination with Cetip to recurring personnel expenses. ² Includes payroll charges on the amount approved at the Annual General Meeting. In addition to the amount described above, approximately R$44 million will be accrued between 2019 and 2021, according to the vesting periods of the stock grant program. The portion referring to payroll taxes on the stocks that will be transferred in future periods can vary significantly, since it will be calculated based on the stock price on the day of the transfer. Estimates on expenses and Capex necessary to capture synergies (R$ millions) Q18 2Q18 3Q e Severance and services providers expenses ~30.0 Capex (projects and integration) ~

53 Financial statements Summary of income statement (consolidated) SUMMARY OF INCOME STATEMENT (in R$ thousands) 3Q18 3Q17 3Q18/3Q17 (%) 2Q18 3Q18/2Q18 (%) 9M18 9M17 9M18/9M17 (%) Total revenues 1, , % 1, % 3, , % Net revenues 1, , % 1, % 3, , % Expenses (642.0) (593.4) 8.2% (531.6) 20.8% (1,776.4) (2,019.7) -12.0% Financial result (12.1) % (57.2) -78.8% (91.8) % Income tax and social contribution (28.0) (150.5) -81.4% % (137.8) (339.0) -59.4% Net income % % 1, % Adjusted expenses¹ (250.5) (228.8) 9.5% (237.2) 5.6% (712.4) (688.0) 3.5% Recurring EBITDA¹ % % 2, , % Recurring EBITDA margin 67.4% 66.6% 84 bps 77.7% -1,023 bps 71.4% 68.1% 325 bps Recurring net income² % % 1, , % ¹ See reconciliation in the slide 55 in the appendix. ² See reconciliation in the slide 56 in the appendix. 53

54 Financial statements Adjusted expenses and EBITDA reconciliations ADJUSTED EXPENSES RECONCILIATION (in R$ thousands) Adjustments to expenses 3Q18 3Q17 3Q18/3Q17 (%) 2Q18 3Q18/2Q18 (%) 9M18 9M17 9M18/9M17 (%) Expenses (642.0) (593.4) 8.2% (531.6) 20.8% (1,776.4) (2,019.7) -12.0% (+) Depreciation and amortization % % % (+) Long term stock based compensation % % % (+) Expenses related to the combination with Cetip % % % (+) Provisions (recurring and non-recurring) % (18.5) % % (+) Revenue-linked expenses % % % Adjusted expenses (250.5) (228.8) 9.5% (237.2) 5.6% (712.4) (688.0) 3.5% EBITDA RECONCILIATION (in R$ thousands) 3Q18 3Q17 3Q18/3Q17 3Q18/2Q18 9M18/9M17 2Q18 9M18 9M17 (%) (%) (%) EBITDA % % 2, , % (+) Expenses related to the combination with Cetip % % % (+) Non-recorring provisions 9.4 (57.8) 0.0% - 0.0% % Recurring EBITDA % % 2, , % Recurring EBITDA margin 67.2% 66.6% 84 bps 77.7% -1,023 bps 71.4% 68.1% 325 bps 54

55 Recurring net income Reconciliation of net income excluding non-recurring items NET INCOME RECONCILIATION (in R$ thousands) 3Q18 3Q17 3Q18/3Q17 (%) 2Q18 3Q18/2Q18 (%) 9M18 9M17 9M18/9M17 (%) Net income (attributable to shareholders) % % 1, % (+) Expenses related to the combination with Cetip % % % (+) Non-recurring provisions 6.2 (38.1) % % (+) Impairment % (+) Amortization of intangibles from combination with Cetip % % % (+) Amortization of intangibles from combination with GRV % (+) Taxes Refinancing (REFIS/PERT) % Recurring net income % % 1, , % (+) Deferred Tax (goodwill from Bovespa combination) % - 0.0% % (+) Deferred Tax (goodwill from Cetip combination) % % % Recurring net income adjusted by goodwill tax benefit % % 2, , % 55

56 Financial statements Summary of balance sheet (consolidated) BALANCE SHEET (in R$ thousands) ASSETS Sep 30, 2018 Dec 31, 2017 LIABILITIES AND EQUITY Sep 30, 2018 Dec 31, 2017 Current assets 8,630,123 6,506,030 Current liabilities 5,401,950 5,491,250 Cash and cash equivalents 566, ,140 Collateral for transactions 2,106,839 2,171,449 Financial investments 7,389,327 4,926,832 Financial instruments for hedge 2,980 18,032 Others 674, ,058 Loan 205,784 43,232 Noncurrent assets 30,023,468 31,073,849 Debentures 1,562,455 1,513,167 Long-term receivables 2,096,143 2,563,595 Others 1,523,892 1,745,370 Financial investments 1,350,218 2,197,268 Noncurrent liabilities 8,350,044 7,778,615 Others 745, ,327 Debt issued abroad 2,430,889 2,012,331 Investments 45,473 44,962 Financial instruments for hedge 0 3,313 Property and equipment, net 564, ,669 Loan 413, ,998 Intangible assets 27,317,444 27,891,623 Debenture 1,499,531 1,497,434 Goodwill 22,338,799 22,338,876 Deferred inc. tax and social contrib. 3,238,546 3,081,088 Software and projects 4,839,957 5,363,067 Others 767, ,451 Others 138, ,680 Equity 24,901,597 24,310,014 Capital 3,198,655 3,198,655 Capital reserve 18,400,936 18,399,366 Others 3,302,006 2,711,993 Non-controlling interests 11,147 10,320 Total Assets 38,653,591 37,579,879 Total liabilities and equity 38,653,591 37,579,879 56

57 Investor Relations / 4207 / 7935 / 7451 / 5115 / 5165 ri@b3.com.br