January - September 2011

Transcription

1 January - September 2011

2 The information contained herein does not constitute an offer of securities in the United States. Offers and sales of securities in The United States may not be made absent made registration under the U.S. Securities Act of 1933, as amended, or an applicable exemption therefrom. This document does not solicit money, securities or any other type of consideration, and if any money, securities or other type of consideration is sent in response hereto, it will not be accepted.

3 Share Information Nine Months 2011 BME report net profit of 40.5 million in 3Q11 and in 9M11, implying increases of 25.9% and 1.6%, respectively, compared to the same periods last year. -- Stripping out extraordinary items, adjusted 9M11 net profit was up 4.7% yoy. -- Net profit was 11.0% higher in 3Q11 than in 2Q11. Excluding extraordinary items, the increase was 14.9%. -- Revenue rose 16.0% yoy in 3Q11, but fell 0.1% yoy in 9M11. Excluding extraordinary income, revenue rose 2.5% yoy in 9M Operating costs in the first nine months of the year totalled 74.0 million, down 4.7% from the same period in 2010, but up 0.5% excluding extraordinaries. In the Equity business, the number of trades carried out rose 46.3% yoy in 3Q11, while the cash volume increased by 8.9%. To September, there were 21.5% more trades than the year before, but turnover was 3.2% lower. Investment flows channeled through the exchange amounted to 35.8 billion in 9M11, the fourth highest ever for the Spanish stock market. The admission to trading of Caixabank, DIA, Bankia and Banca Cívica took place in the quarter. In the MAB growth companies segment, Lumar, Secuoya and Griñó were admitted. Meanwhile, Inditex became a constituent of the Euro Stoxx 50 index. The 9M11 efficiency ratio was 30.3% and 31.7% in the same period in 2010, improving more than 1pp the ratio. This enabled the group to maintain its difference of over 15 points above the sector average. Return on Equity (ROE) was 35.3% in 9M11, from 34.1% in 9M10, more than 20 points above the sector average. - Business performance -Interim Report (January - September 2011) 3

4 Financial Statements BOLSAS Y MERCADOS ESPAÑOLES, SOCIEDAD HOLDING DE MERCADOS Y SISTEMAS FINANCIEROS, S.A. AND SUBSIDIARIES COMPRISING THE BOLSAS Y MERCADOS ESPAÑOLES GROUP CONSOLIDATED PROFIT AND LOSS ACCOUNTS (UNAUDITED) (Th.Eur.) (Th.Eur.) % (Th.Eur.) (Th.Eur.) % Operating Income 82,764 71, % 244, , % Ordinary revenue on the provision of services 81,999 70, % 240, , % Other operating income % 2,648 8, % Capitalisation of development expenses % 1,038 2, % Operating Expenses (24,388) (23,812) 2.4% (74,015) (77,655) -4.7% Staff costs (15,540) (14,720) 5.6% (46,612) (48,328) -3.6% Operating and external expenses (8,695) (8,911) -2.4% (26,967) (28,764) -6.2% Taxes and levies (153) (181) -15.5% (436) (563) -22.6% Income before interest, taxes, net impairment losses and depreciation 58,376 47, % 170, , % Depreciation and amortization charges (1,936) (1,980) -2.2% (5,775) (6,010) -3.9% Net impairment losses (Fixed assets) 0 (1) -100% (3) (4) -25.0% Income before interest and taxes 56,440 45, % 164, , % Net financial income 1, % 3,330 1, % Share of profit (loss) of associates (139) (121) 14.9% (231) (354) -34.7% Income before taxes 57,473 46, % 167, , % Corporate income tax (16,992) (13,850) 22.7% (49,385) (45,732) 8.0% Profit attributable to the Group 40,481 32, % 118, , % Mill. BME: Profit attributable to The Group (Quarterly series) Evolución Profit del evolution Evolution Beneficio Neto Q10 4Q10 1Q11 2Q11 3Q11 (BME) reported net profit of 40.5 million in 3Q11, an increase of 25.9% yoy. Net profit for 9M11 was million, 1.6% higher than in the same period last year. Stripping out extraordinary items recorded in the second quarters of both years, nine-month net profit increased by 4.7%. Revenues rose 16.0% yoy in 3Q11 to 82.8 million, but were 0.1% yoy lower in 9M11 at million. These amounts include extraordinary income from tax refunds applied in the second quarter, of 1.2 million and 7.5 million in 2011 and 2010, respectively. Excluding this exceptional item, 9M11 revenues were 2.5% higher than in 9M10. The main revenue drivers this quarter have been increased market activity, the contributions by new market admissions to the listing, trading and settlement businesses, and a better performance by IT & Consulting. Operating expenses totalled 24.4 million in 3Q11 (+2.4%) and 74.0 million in 9M11 (-4.7%). Excluding extraordinary provisions in 2010, operating expenses this year have risen by 0.5% compared to last year. 4 - Business performance -Interim Report (January - September 2011)

5 Financial Statements EBITDA came to 58.4 million in 3Q11, an increase of 22.9% yoy, and million in 9M11, up 2.0% yoy. Stripping out extraordinary income and expense items in both years, EBITDA rose 3.4% yoy in 9M11. Earnings per share was 0.49 in 3Q11, which added to the first two quarters of the year leave a 9M11 figure of The efficiency ratio, one of the company s key management performance indicators, was 29.5% in 3Q11 and 30.3% in 9M11, improving from 33.4% and 31.7%, respectively, in ROE was 35.3% in 9M11 and 36.3% in 3Q11, compared to 34.1% and 28.1%, respectively, last year. Revenue not linked to volumes covered 110% of BME s cost base in the first nine months of Group (Key Ratios) Earnings per share % % Efficiency ratio (%) 29.5% 33.4% 30.3% 31.7% ROE (%) 36.3% 28.1% 35.3% 34.1% BME: Return on Equity (Quarterly series) Consolidated ROE ratio evolution % ROE 28.1% 33.2% 35.6% 31.4% 36.3% 3Q10 4Q10 1Q11 2Q11 3Q11 BME efficiency ratio (Quarterly series) Consolidated efficiency ratio evolution (% Efficiency) 33.4% 31.3% 28.9% 32.7% 29.5% 3Q10 4Q10 1Q11 2Q11 3Q11 - Business performance -Interim Report (January - September 2011) 5

6 Financial Statements BOLSAS Y MERCADOS ESPAÑOLES, SOCIEDAD HOLDING DE MERCADOS Y SISTEMAS FINANCIEROS, S.A. AND SUBSIDIARIES COMPRISING THE BOLSAS Y MERCADOS ESPAÑOLES GROUP as of 30/09/2011 as of 30/09/2010 CONSOLIDATED BALANCE SHEETS AT CLOSING DATES (UNAUDITED) (Th.Eur.) (Th.Eur.) % NON-CURRENT ASSETS 167, , % Goodwill 82,190 80, % Other intangible assets 9,688 9, % Property, plant and equipment 49,106 51, % Non-current financial assets 21,188 21, % Deferred taxes 5,695 7, % CURRENT ASSETS 30,456,959 20,638, % Non-Group current financial assets 30,075,557 20,253, % Other current financial assets Trade and other receivables 21,172 19, % Cash and cash equivalents 343, , % Tax assets 14,634 19, % Other current assets 1,843 1, % TOTAL ASSETS 30,624,826 20,808, % SHAREHOLDERS EQUITY 450, , % Share capital 270, , % Reserves 101, , % Profit attributable to the Group 118, , % (Treasury shares) (7,661) (7,661) 0.0% (Interim dividend) (33,311) (33,311) 0.0% Other equity instruments 585 2, % Valuation reserves % NON-CURRENT LIABILITIES 15,291 16, % Provisions 6,532 9, % Provisions for employee benefits 3,897 3, % Deferred taxes 4,161 3, % Other non-current financial liabilities ,272.7% CURRENT LIABILITIES 30,159,269 20,334, % Trade and other payables 20,394 19, % Non-Group current financial liabilities 30,075,535 20,253, % Tax liabilities 58,544 56, % Other current liabilities 4,796 4, % TOTAL EQUITY AND LIABILITIES 30,624,826 20,808, % In order to apply the same presentation criteria as other European central counterparties, the Group includes in Current assets Non-Group current financial assets and Current liabilities Non-Group current financial liabilities, by the same amounts, fixed-income securities and options in which it acts as central counterparty, and guarantees and deposits received from the market. This presentation criteria has no impact on income or equity. 6 - Business performance -Interim Report (January - September 2011)

7 Financial Statements BOLSAS Y MERCADOS ESPAÑOLES, SOCIEDAD HOLDING DE MERCADOS Y SISTEMAS FINANCIEROS, S.A. AND SUBSIDIARIES COMPRISING THE BOLSAS Y MERCADOS ESPAÑOLES GROUP 9M11 9M10 CONSOLIDATED CASH FLOW STATEMENT (UNAUDITED) (Th.Eur.) (Th.Eur.) % Consolidated profit for the year before taxes 167, , % Corporate income tax (49,385) (45,732) 8.0% Amortization and provisions 6,807 10, % Other adjustments to the result (781) (1,376) -43.2% Changes in working capital- - Current financial assets (non Group) 61 (62) % - Trade and other receivables 2,320 2, % - Tax assets 26,803 19, % - Tax liabilities (22,349) (18,031) 23.9% - Other current assets (1,104) (1,113) -0.8% - Trade and other payables 3, % - Other current liabilities 4,470 4, % Changes in non current assets and liabilities (154) (1,747) -91.2% Net cash flows from operating activities 137, , % Net cash flows from investing activities (4,942) (2,016) 145.2% Net cash flows from financing activities (108,936) (108,963) -0.0% Net increase (decrease) in cash and cash equivalents 23,970 20, % Cash and cash equivalents at the beginning of period 319, , % Cash and cash equivalents at the end of period 343, , % Note: For the purpose of clear presentation of changes in working capital, inflows of funds from guarantees and deposits received from the market which are invested in current financial assets Current assets Non-Group current financial assets in their entirety have not been included as a change in working capital. Financial instruments of MEFF as a central counterparty and receivables on settlements of options and futures, have not been included either. - Business performance -Interim Report (January - September 2011) 7

8 Quarter Overview Highlights Cash Equity market turnover totalled billion in 3Q11 (+8.9% yoy) and billion in 9M11 (-3.2% yoy). The number of trades rose 46.3% yoy in 3Q11 and 21.5% yoy in 9M11. On 11 August 2011, the National Securities Market Commission (CNMV) resolved to ban for precautionary purposes with immediate effect and for a temporary period, pursuant to Article 85.2 j of the Securities Market Law 24/1988, of 28 July (LMV), the trading of securities or financial instruments by any individual or corporate entity that involves establishing or increasing short positions on Spanish financials. Further announcements on 25 August and 28 September saw the precautionary ban on short selling extended until the Commission, within the framework of the work coordinated by ESMA, deems market conditions warrant lifting the ban. The ban on short selling has had a negative impact on trading volumes on the equity cash market and trading on the stock and index-linked derivatives markets. It has also led to a liquidity squeeze in the orderbook, which has led to bid-ask spreads widening and implicit transaction costs rising for investors. The third quarter featured extreme volatility and uncertainty, fuelled by the debate regarding the economic situation and the need to bail out certain countries in the euro zone, bank recapitalisation and the sovereign debt crisis. This situation has affected market volumes, offsetting the generalised correction in share prices, the seasonal element of summer in trading, and the negative impact on trading volumes of the regulator s ban on short selling. A total of 11.8 million operations were settled in all the markets in 3Q11 (+33.8% yoy), and 33.7 million in 9M11 up from 29.9 million in 9M10 (+12.8% yoy). (Quaterly Overview) Equity Turnover (Mill. Eur.) 234, , % 720, , % Number of trades 12,416,061 8,486, % 35,926,029 29,568, % Number of shares (Million) 41,310 25, % 124,157 85, % Market Capitalisation (Mill. Eur.) 920,801 1,029, % Average amount per trade (Euros) 18,909 25, % 20,060 25, % Clearing & Settlement Operations settled 11,817,758 8,831, % 33,724,565 29,889, % Turnover settled (billion euros daily avg.) % Nominal amount registered (billion euros) 1, , % Listing Investment Flows channeled through Exchange (Mill. Euros) 17,113 3, % 35,797 10, % AIAF Fixed Income volume admitted (nominal Mill. Euros) 36,498 65, % 175, , % Derivatives Futures (number of contracts) Index Futures 2,410,209 2,026, % 6,891,868 7,704, % Stock Futures 5,230,105 4,969, % 21,673,370 13,033, % Options (number of contracts) Index Options 598, , % 1,587,565 2,271, % Stock Options 5,784,481 8,137, % 20,316,754 26,862, % Open interest (number of contracts) 13,622,052 15,699, % Fixed Income Turnover (Mill. Eur.) 1,220, , % 4,336,567 2,423, % 8 - Business performance -Interim Report (January - September 2011)

9 Quarter Overview In the cross-border trading register, REGIS-TR, delivery of the second phase of the system is scheduled for the second half of November. This delivery includes registration of currency derivatives and access by supervisors to the system. In March 2012, the register will cover equity and commodity derivatives. Equity market investment flows channeled through the exchange up to September this year, including both shares already admitted to trading and new shares admitted, amounted to 35.8 billion. This is the fourth highest ever for the Spanish market and the highest since On 5 July 2011, shares of Distribuidora Internacional de Alimentación (DIA) were admitted to trading. On 7 July, shares capital increase of Caixabank coming from the transformation of the entity in bank, were admitted to trading. On 20 July, the first ever issue of ordinary shares by a savings bank, Bankia, was made, and on 21 July, Banca Cívica was admitted to trading. These operations were both part of the financial sector restructuring. Lumar, Secuoya and Griño were admitted to trading on the MAB growth companies segment on 6 July, 28 July and 29 July, respectively. These latest additions take the total number of companies admitted to this segment to 17. Fixed-income trading volume amounted to 1.22 trillion in 3Q11 and 4.34 trillion in 9M11, marking increases of 24.1% and 78.9%, respectively, from the same periods last year. In IT & Consulting, growth in turnover and orders routed through the VT network in the year s third quarter extended the trend seen in the two preceding quarters. The financial communication services customer base increased by 78%. The BME board resolved to pay the second interim dividend for 2011 on 23 December Bankia was included in the IBEX 35 on 3 October, while Inditex joined the Euro Stoxx 50 on 19 September. - Business performance -Interim Report (January - September 2011) 9

10 Quarter Overview Shareholder s Equity Changes BOLSAS Y MERCADOS ESPAÑOLES, SOCIEDAD HOLDING DE MERCADOS Y SISTEMAS FINANCIEROS, S.A. AND SUBSIDIARIES COMPRISING THE BOLSAS Y MERCADOS ESPAÑOLES GROUP (CHANGE IN SHAREHOLDERS EQUITY) 9M11 (Th.Eur.) 9M10 (Th.Eur.) Shareholders equity opening balance 448, ,161 Supplementary dividend (49,967) (49,967) Extraordinary dividend (30,980) (30,980) Interim dividend (33,311) (33,311) Valuation reserves (2,357) 1,821 Equity instruments Business combinations (560) 0 Net income/loss in reporting period 118, ,594 Shareholders equity closing balance 450, ,187 Staff (Staff)(*) 3Q11 3Q10 9M11 9M10 Average number of staff Employees as at balance sheet date (*) Staff includes, for this purpose, only the 50% of the staff of Infobolsa. Efficiency The efficiency ratio performed positive in the first nine months of Whereas cost control was the main driver of the improvement in the second quarter, in the third quarter it was mostly higher revenue, with only a moderately increase by operating costs. The efficiency ratio was 29.5% for 3Q11 and 30.3% for 9M11, compared to 33.4% and 31.7%, respectively, in Adjusted for extraordinary items, the efficiency ratio would be 30.4% and 31.0% in 9M11 and 9M10, respectively. BME efficiency ratio (Cumulative and quarterly series) Consolidated efficiency ratio evolution (% Efficiency) 33.4% 31.7% 29.5% 30.3% 3Q10-3Q11 9M10-9M Business performance -Interim Report (January - September 2011)

11 Share Information Share Performance Volatility remained high in 3Q11 amid tension in credit markets and uncertainty over how debt-strapped governments would fund their budget deficits. As a result, risk aversion heightened in the investment community, causing share prices (above all of banks and companies with high exposure to debt) to fall. BME s performance in this environment outperformed its benchmark, the IBEX 35 index. The IBEX 35 slumped 17.5% in the quarter, while BME shed 2.1% with a closing quote in 3Q11 of YTD to 30 September, the benchmark index was down 13.3%, compared to the 12.7% gain seen by BME. Daily trading cash volume in BME shares in the first nine months of the year was up by 8.8% and in the third quarter by 27.7% compared to the same periods last year. The number of trades soared 14.9% yoy in 3Q11 and 17.4% yoy in 9M11. Compared to 2010, the volume of shares traded was up 16.1% in 3Q11 and 5.3% higher in the first nine months. BME: Share performance Quarterly BME's turnover and share performance evolution volume Closing Pric ce l. Euros) /07 22/07 27/07 01/08 04/08 09/08 12/08 17/08 22/08 25/08 30/08 02/09 07/09 Turnover (Mil 12/09 15/09 20/09 23/09 28/09 03/10 06/10 11/10 14/10 (Share performance) BME s share performance Higher quote % % Lower quote % % Average quote % % Closing quote % BME s trading daily turnover (Mill. Euros) Higher daily turnover % % Lower daily turnover % % Average daily turnover % % BME s shares trading (Mill. Shares) % % BME s number of trades 70,115 61, % 262, , % - Business performance -Interim Report (January - September 2011) 11

12 Business Units Quarter Overview (Business Units 9M11) (Thousands of Euros) Equity Clearing & Settlement Listing Market Data & Information Derivatives Fixed Income IT & Consulting Revenues 103,999 58,498 18,347 24,324 18,207 6,333 11,988 Operating Costs (23,874) (10,388) (6,942) (5,110) (8,448) (2,225) (7,870) EBITDA 80,125 48,110 11,405 19,214 9,759 4,108 4,118 Key Investment Highlights Key Financial Business Units overview EBITDA evolution by Business Unit (9M11) (Th. Euros) 80,014 80,125 45, ,110 9,105 11,405 18,627 19,214 11,528 9,759 3,711 4,108 2,411 4,118 EQUITY CLEARING & SETTLEMENT LISTING MARKET DATA & INFORMATION DERIVATIVES FIXED INCOME IT & CONSULTING Revenues Business Units Revenues (Thousands of Euros) Equity 35,093 29, % 103, , % Clearing & Settlement 20,700 16, % 58,498 55, % Listing 6,767 5, % 18,347 16, % Market Data & Information 8,137 7, % 24,324 23, % Derivatives 5,666 5, % 18,207 19, % Fixed Income 1,688 1, % 6,333 5, % IT & Consulting 4,255 3, % 11,988 10, % Total 82,306 70, % 241, , % Corporate Unit 2,475 2, % 9,123 16, % Consolidation adjustments (2,017) (1,884) 7.1% (6,313) (6,079) 3.8% Consolidated 82,764 71, % 244, , % EBITDA Business Units EBITDA (Thousands of Euros) Equity 27,330 21, % 80,125 80, % Clearing & Settlement 17,231 13, % 48,110 45, % Listing 4,460 3, % 11,405 9, % Market Data & Information 6,261 6, % 19,214 18, % Derivatives 2,904 3, % 9,759 11, % Fixed Income 939 1, % 4,108 3, % IT & Consulting 1, % 4,118 2, % Total 60,820 49, % 176, , % Corporate unit (2,444) (1,921) 27.2% (6,348) (3,738) 69.8% Consolidation adjustments Consolidated 58,376 47, % 170, , % 12 - Business performance -Interim Report (January - September 2011)

13 Business Units Quarter Overview Equity Revenue for the Equity business in 9M11 amounted to 103,999 thousand, virtually flat on the 104,030 thousand of the same period last year. In 3Q11, unit revenues increased by 17.4% to 35,093 thousand. EBITDA rose 24.9% in the quarter to 27,330 thousand and 0.1% in the nine-month period to 80,125 thousand. Cash Equity turnover totalled billion in 3Q11 (+8.9% yoy) and billion in 9M11 (-3.2% yoy). The number of equity trades rose 46.7% yoy in 3Q11 and 21.9% yoy in 9M11. In the warrants and certificates market, turnover jumped 25.7% (Equity Business Unit Income) (Th.Eur.) Revenues 35,093 29, % 103, , % Operating Costs (7,763) (8,002) -3.0% (23,874) (24,016) -0.6% EBITDA 27,330 21, % 80,125 80, % Equity Business unit Activity Overview Turnover, Trades and Shares (Monthly basis) /10 8/10 9/10 10/10 11/10 12/10 1/11 2/11 3/11 4/11 5/11 6/11 7/11 8/11 9/11 Turnover ( Bill.) Shares (Bill.) Trades (Mill.) Equity Business unit Activity Overview Turnover, trades and Shares traded (Quarterly basis) Q10 4Q10 1Q11 2Q11 3Q11 Turnover ( Bill.) Shares (Bill.) Trades (Mill.) - Business performance -Interim Report (January - September 2011) 13

14 Business Units Quarter Overview yoy in 3Q11 to 509 million. In the first nine months of the year, turnover was 1.6% higher, at 1.28 billion. The number of trades rose 13.9% yoy in the quarter but declined 15.4% in the nine-month period compared to the same period last year. Exchange-traded funds (ETFs) recorded increases in turnover of 9.1% in 3Q11 and declines of 52.0% in 9M11, and the number of trades decreased by 3.2% and 35.3%, respectively. (Equity Business Unit Activity Overview) TRADING (Mill. Euros) 234, , % 720, , % Equity Turnover (Mill. Euros) 233, , % 716, , % Number of trades 12,320,584 8,401, % 35,661,794 29,243, % Average amount per trade (Euros) 18,948 25, % 20,103 25, % Exchange Traded Funds (ETFs) Turnover (Mill. Euros) % 2,468 5, % Number of trades 12,111 12, % 34,202 52, % Warrants Turnover (Mill. Euros) % 1,275 1, % Number of Trades 83,366 73, % 230, , % Number of shares (Mill. Shares) 41,310 25, % 124,157 85, % CAPITALISATION (Mill. Euros) 920,801 1,029, % 14 - Business performance -Interim Report (January - September 2011)

15 Business Units Quarter Overview Clearing & Settlement This unit reported total revenues from its various activities of 20,700 thousand in 3Q11 (+24.6%), and 58,498 thousand in 9M11 (+5.5%). EBITDA was 17,231 thousand in the quarter (+29.6%) and 48,110 thousand in the nine-month period (+5.9%). Stripping out the impact of the default management service s activity on the unit s performance, registration revenue in the first nine months of 2011 increased by 5.8% (+5.4% in the third quarter), while settlement revenue fell by 1.5% (+24.8% in 3Q11). The nominal amount registered in 9M11 in Equity and Fixed Income (private and public) through to September 2011 was 1.61 trillion, representing yoy growth of 4.9%. A total of 11.8 million operations were settled in all the markets in 3Q11, 33.8% more than in 3Q10. In 9M11, 33.7 million operations were settled, 12.8% more than the 29.9 million settled in 9M10. The turnover settled in the first nine months increased by just 0.3% to billion. Settlement, book-entry and registration of securities and trades, both free of payment and against payment, were set up and began operating among a number of Iberclear members in February with the German CSD Clearstream Banking A.G. Frankfurt (CBF). During the third quarter, the necessary developments and testing were conducted to establish the link with the Austrian CSD, Oesterreichische Kontrollbank AG (OeKB), and the Swiss CSD, SIX SIS Ltd. (SIS). In the registration of cross-border trades, REGIS-TR, a number of participating entities are working on including customers through their on-line banking platforms. Delivery of the second stage of the system is scheduled for the second half of November. This delivery includes registration of currency derivatives and access by supervisors to the system. In March 2012, the register will cover equity and commodity derivatives. (Clearing & Settlement Business Unit Income) (Th.Eur.) Revenues 20,700 16, % 58,498 55, % Operating Costs (3,469) (3,322) 4.4% (10,388) (9,997) 3.9% EBITDA 17,231 13, % 48,110 45, % C&S Business unit Activity Overview Number of transactions settled (Quarterly basis) Operations settled 8,831,625 11,799,844 11,554,541 10,352,266 11,817,758 3Q10 4Q10 1Q11 2Q11 3Q11 (Clearing & Settlement Business Unit Activity Overview ) Operations settled 11,817,758 8,831, % 33,724,565 29,889, % Turnover settled (billion euros daily avg.) % Nominal amount registered (billion euros) 1, , % - Business performance -Interim Report (January - September 2011) 15

16 Business Units Quarter Overview Listing The market capitalisation of companies admitted to trading on the equity markets managed by BME at 30 September 2011 stood at billion, down 10.6% yoy. Equity market investment flows channeled through the exchange to September this year, including shares already admitted to trading and new shares admitted, amounted to 35.8 billion. This is the fourth highest figure ever recorded for the Spanish market and the highest since Funds flows in equities already listed in the second quarter of 2011 include the Caixabank and Metrovacesa s capital increases and BBVA s bond conversion. On 5 July 2011, shares of Distribuidora Internacional de Alimentación (DIA) were admitted to trading. On 7 July, shares capital increase of Caixabank coming from the transformation of the entity in bank, were admitted to trading. On 20 July, the first ever issue of ordinary shares by a savings bank, Bankia, was made, and on 21 July, Banca Cívica was admitted to trading. These operations were both part of the financial sector restructuring. Bankia became a constituent of the IBEX 35 on 3 October. Inditex joined the Euro Stoxx 50 on 19 September. DIA and IAG were included in the FTSE4GOOD IBEX on 19 September Lumar, Secuoya and Griño were admitted to trading on 6 July, 28 July and 29 July, respectively, on the MAB Growth Companies Segment. These latest additions take the number of companies admitted to this segment to 17. There were 3,089 SICAVs admitted to trading on the Alternative Equity Market (MAB) at 30 September 2011, 2.77% fewer than the year before. The number of warrants listed for trading in the first nine months of the year grew 8.49% yoy to 6,195. Eight new ETFs are slated for admission to trading. These latest additions will take the number of ETFs listed on the market to 73. The total volume of new issues admitted to listing on the AIAF fixed income market in 3Q11 fell 44.4% to 36.5 billion. New listings were up a slight 0.2% yoy in 9M11 at billion. The third quarter saw a contraction in both short-term issues (-37.6%) and medium- and long-term issues (-47.8%). However, in the nine-month period, short-term issues fell 20.8%, but medium- and long-term issues were up 17.1%. Rating downgrades, which pushed up risk premiums and issue costs, the lack of confidence over issues except in the strongest markets and the decline in the issuer base caused by the saving bank reform and mergers affected activity in the primary fixed-income markets. As issuance activity diminished, the outstanding balance of private fixed-income issues decreased by 0.9% through to the end of the third quarter, to billion. The entire decrease was due to short-term instruments. Driven mainly by flows channelled to the equities market, revenue for the Listing unit increased by 22.4% to 6,767 thousand in 3Q11, and by 11.0% to 18,347 thousand in 9M11. EBITDA was 4,460 thousand in 3Q11 (+45.4%) and 11,405 thousand in 9M11 (+25.3%). (Listing Business Unit Income) (Th.Eur.) Revenues 6,767 5, % 18,347 16, % Operating Costs (2,307) (2,462) -6.3% (6,942) (7,430) -6.6% EBITDA 4,460 3, % 11,405 9, % (Listing Business Unit Activity Overview) Equity Market Number of Companies listed 3,348 3, % Market Capitalisation listed (Mill.Euros) 920,801 1,029, % New shares nominal listed (Mill. Euros) 6, ,413.2% 7, ,900.0% Investment Flows channeled through Exchange (Mill. Euros) New listed companies 10, ,175.2% 18,749 5, % Already listed companies 6,891 3, % 17,048 4, % Fixed Income Market AIAF Fixed Income volume admitted (nominal Mill. Euros) 36,498 65, % 175, , % Public Debt Outstanding Balance (Mill. Euros) 623, , % Private Fixed Income Outstanding Balance (Mill. Euros) 844, , % 16 - Business performance -Interim Report (January - September 2011)

17 Business Units Quarter Overview Market Data & Information The Information unit posted revenues of 8,137 thousand in 3Q11 and of 24,324 thousand in 9M11, with yoy increases of 4.8% and 4.4%, respectively. Openfinance, company 62% acquired by BME in the previous quarter, continued expanding the services and products solutions during the quarter. A big part of unit s cost increase is explained by integration of the company business in the unit. After operating costs, EBITDA was flat in 3Q11, at 6,261 thousand, but up 3.2% yoy in 9M11, at 19,214 thousand. The number of customers connected to the Spanish market s information flow continued to rise, in line with preceding quarters. The number of customers with a direct connection to BME s information servers increased by 14.3% yoy in 3Q11, while total connections rose by 10.5%. The average number of information subscribers was broadly unchanged compared to last year. In both 3Q11 and 9M11, average subscription volume was 0.2% less than in However, the figure for 3Q11 was 1.7% higher than for 2Q11. BME continued to broaden its content offering in the third quarter, adding new instruments on its markets (e.g. equities, ETFs, warrants, derivatives). On 1 July, new end-of-day and Reference Data products were launched. Service is already fully operational. On the technical front, the third quarter featured record high activity levels in messages managed by the BME Data Feed platform, generating healthy returns and margins. (Information Business Unit Income) (Th.Eur.) Revenues 8,137 7, % 24,324 23, % Operating Costs (1,876) (1,501) 25.0% (5,110) (4,661) 9.6% EBITDA 6,261 6, % 19,214 18, % - Business performance -Interim Report (January - September 2011) 17

18 Business Units Quarter Overview Derivatives Revenue in the Derivatives unit fell 4.1% in 3Q11 to 5,666 thousand and 7.1% in 9M11 to 18,207 thousand, with EBITDA through to September of 9,759 thousand (-15.3%). Total contracts of derivative products traded slumped 10.2% yoy in the year s third quarter, although all products except equity options posted increases. In 9M11, volume was 1.2% higher than last year. Trading in IBEX 35 futures advanced 11.0% yoy in 3Q11, while trading in Mini futures contracts and IBEX 35 options increased by 33.9% and 22.3% yoy in 3Q11, respectively, driven by robust activity in the first part of the quarter and despite the negative impact on IBEX 35 futures trading volumes of the ban on the short selling of financial sector companies imposed since 11th of August by the securities market regulator, the CNMV. The notional value of contracts on the IBEX 35 increased by 2.9% in the quarter and 15.5% in the nine-month period. Futures contracts on individual stocks performed well, with a 5.2% increase in volume in the quarter and a 66.3% cumulative increase through to the end of September. Only equity options sustained declines: 28.9% in 3Q11 and 24.4% in 9M11. The notional value of equity derivatives fell by 19.1% and 2.3%, respectively. Open interest at 30 September 2011 stood at 13.6 million contracts, down 13.2% from the year earlier. The number of trades increased by 17.3% in the quarter to 1.4 million. (Derivatives Business Unit Income) (Th.Eur.) Revenues 5,666 5, % 18,207 19, % Operating Costs (2,762) (2,603) 6.1% (8,448) (8,068) 4.7% EBITDA 2,904 3, % 9,759 11, % Derivatives Business unit Activity Overview Index derivatives contracts traded Derivatives Business unit Activity Overview Stock derivatives contracts traded IBEX 35 Futures MiniIBEX 35 Futures IBEX 35 Options Stock Futures Stock Options Nu umber of contracts (Th.) 1,433 1, , , , umber of contracts (Th.) Nu 4,970 8,137 6,651 10,744 8,006 8,368 8,437 6,164 5,230 5,784 3Q10 4Q10 1Q11 2Q11 3Q11 3Q10 4Q10 1Q11 2Q11 3Q11 (Derivatives Business Unit Activity Overview) Derivatives Contracts (number of contracts) 14,022,946 15,622, % 50,469,557 49,872, % Index Derivatives (number of contracts) IBEX 35 Index Futures 1,473,446 1,327, % 4,329,417 4,848, % Mini IBEX 35 Index Futures 936, , % 2,559,397 2,856, % IBEX 35 Div Impact Futures 499 3,054 IBEX 35 Index Options 598, , % 1,587,565 2,271, % Total notional value (Mill.Euros) 153, , % 469, , % Equity Derivatives (number of contracts) Equity Futures 5,230,105 4,969, % 21,673,370 13,033, % Equity Options 5,784,481 8,137, % 20,316,754 26,862, % Total notional value (Mill.Euros) 13,258 16, % 48,462 49, % Open Interest (number of contracts) 13,622,052 15,699, % Number of Trades 1,398,723 1,192, % 3,973,469 4,401, % 18 - Business performance -Interim Report (January - September 2011)

19 Business Units Quarter Overview Fixed Income This business unit includes only fixed cash income trading. Operating revenues from this business totalled 1,688 thousand in 3Q11 (-3.6%) and 6,333 thousand in 9M11 (+11.0%). EBITDA in the third quarter fell 14.3% yoy to 939 thousand, but increased by 10.7% in the nine-month period to 4,108 thousand. Fixed-income trading volume amounted to 1.22 trillion in 3Q11 and 4.34 trillion in 9M11, marking increases of 24.1% and 78.9%, respectively, on the same periods last year. By product, trading in reverse repos (operations were transferred from the SENAF platform to the bilateral market in search of a central counterparty, CCP, to reduce operating risks) led to a fall in trading in public debt. However, trading to maturity increased by 5.4%. Private fixed-income trading in the third quarter stood at 1.19 trillion, a 33.1% jump on the same quarter last year. Both trading to maturity and repo and reverse repo trading increased, by 10.5% and 34.6%, respectively. In the first nine months of 2011, total trading volume in private fixed-income securities soared 93.1% yoy to 4.22 trillion, with an 8.4% increase in trading maturity and a 102.4% increase in repo and reverse repo trading. (Fixed Income Business Unit Income) (Th.Eur.) Revenues 1,688 1, % 6,333 5, % Operating Costs (749) (655) 14.4% (2,225) (1,993) 11.6% EBITDA 939 1, % 4,108 3, % Fixed Income Activity Fixed Income Turnover Other Equity Market Fixed Income Public Debt Private Fixed Income (Mill. Euros) 76,107 13, ,820 41,659 18,981 1,473,821 27,357 12,771 1,827,356 17,747 14,564 28,163 16,720 1,202,249 1,189,640 3Q10 4Q10 1Q11 2Q11 3Q11 (Fixed Income Business Unit Activity Overview) Public Debt Turnover (Mill. Euros) 16,720 76, % 72, , % Private Fixed Income Turnover (Mill. Euros) 1,189, , % 4,219,245 2,185, % Other Equity Market Fixed Income Turnover (Mill. Euros) 14,564 13, % 45,082 43, % Fixed Income Total Turnover (Mill. Euros) 1,220, , % 4,336,567 2,423, % - Business performance -Interim Report (January - September 2011) 19

20 Business Units Quarter Overview IT & Consulting IT & Consulting revenues rose 36.2% yoy in 3Q11 to 4,255 thousand. Revenues from the various services provided by this unit through September amounted to 11,988 thousand, up 18.0% on the same period last year. EBITDA was 1,695 thousand in 3Q11 and 4,118 in 9M11, with increases of 219.8% yoy and 70.8% yoy, respectively. The growth in cash volumes traded and the number of orders routed through Visual Trader in 3Q11 was in line with previous quarters, boosting the unit s revenue. In 9M11, cash volume routed to BME through VT rose 39.9% yoy, while the number of orders increased by 131.2%. Amid an overall positive trend for post-trading services, proximity services and market interface and access solutions fared the best in the third quarter this year. In consulting and systems, BME provided consulting services in 3Q11 to issuers in relation to admissions to trading. In financial communication services (BME HighWay), the customer base increased by 78% in 9M11, meanwhile in compliance services the final touches to backoffice and bids tools are being made in line with the latest changes in reporting regulations. (IT & Consulting Business Unit Income) (Th.Eur.) Revenues 4,255 3, % 11,988 10, % Operating Costs (2,560) (2,594) -1.3% (7,870) (7,749) 1.6% EBITDA 1, % 4,118 2, % 20 - Business performance -Interim Report (January - September 2011)