Institutional Presentation 3Q14

Transcription

1 Institutional Presentation 3Q14 1

2 I. GENERAL OVERVIEW II. BUSINESS ENVIRONMENT III. 3Q14 RESULTS IV. GROWTH OPPORTUNITIES 2

3 Cetip s Timeline 1986 Cetip starts its operations 1994 Beginning of OTC Derivatives registration Advent becomes a shareholder with a 32% stake - IPO and listing at Novo Mercado of BM&F Bovespa Cetip s brand repositioning - ICE becomes a shareholder with 12% stake - Advent is no longer a shareholder Amendment of the company s bylaws, seeking to improve Cetip s corporate governance - Launched, in partnership with FNC, the real estate appraisal platform 1984 Cetip is established as a not-for-profit organization 1988 Agreement with Anbima to operate SND (National System of Debentures) 2008 Demutualization process: creation of Cetip S.A Acquisition of GRV Solutions, which today represents the Financing Unit of the company. The acquisition was financed by the first company s debentures issuance 2012 Cetip s shares were included in the IBOVESPA and IBrX-50 indexes 3

4 Shareholding Structure Board 0.6% Santander 2.8% IPO OCT/2009 Others 55.6% Board + Management 2.9% SEP/2014 ICE 12.1% Bradesco 4.4% Itaú Unibanco 10.1% Others 85.0% Advent 18.1% FEMCO 8.4% Breakdown of Others (SEP/2014) Individuals 2.4% Foreign Investors 74.2% Local Investors 23.4% 4

5 CTIP3 Performance 300 CTIP3 vs. Ibovespa since the IPO until 09/30/2014 (Base /27/2009) 2014 (YTD - until 09/30/2014) +31.5% CTIP CTIP3 Ibovespa % IBOV Oct-09 Feb-10 Jun-10 Oct-10 Feb-11 Jun-11 Oct-11 Feb-12 Jun-12 Oct-12 Feb-13 Jun-13 Oct-13 Feb-14 Sep CTIP3 Daily Average Traded Volume (12 months rolling average) (12 Months rolling average) CTIP3 Daily Average Number of Trades Nov-10 Jun-11 Jan-12 Aug-12 Mar-13 Oct-13 Source: Bloomberg Sep-14 Nov-10 Jun-11 Jan-12 Aug-12 Mar-13 Oct-13 Sep-14 5

6 Cetip Integrating Brazilian financial market, Cetip is Latin America s largest depository of private fixed income securities and Brazil s largest private asset clearing house; Complete solution for financial instruments, from the analysis of potential issuances, registration and custody until trading, settlement, risk management and market data; Leading company in providing electronic delivery solutions of information required for the registration of contracts and financial restrictions by transit bodies. Clients International Peers Financial Institutions; Mutual Funds; Pension Funds; Insurers and Consortia; Corporations; Brokerage Houses and Broker Dealers; Leasing Companies; Securitization Companies. 6

7 Diversified Revenue Profile¹ Revenue diversification by business unit and types of revenue 64.4% 35.6% Gross Revenue: R$1,182.2 million Securities Unit Financing Unit: Transactions 14.8% Registration 15.9% Others 11.1% Monthly Utilization 22.8% Custody 35.4% Revenues that depend on Stock 47.0% Types of Revenue: Others 53.0% Market Data and Develop. 15.0% Sircof 39.2% Others 1.0% SNG 44.8% Short term economical instability have little impact on revenues that depend on stock Business Units with no correlated risks Note: (1) Last twelve months based on September

8 Business Model Securities Unit Securities Unit represents 64%¹ of total Cetip s gross revenues Register of fixed income securities and OTC derivatives Central depository of fixed income instruments and OTC derivatives Custody and Registration Settlement DVP Settlement (deliver versus payments) Settlement processing Collateral management in bilateral transactions Collateral Management Negotiation Registration of all operations performed Mark to Market Trading platform for fixed income securities Unique and Integrated solutions for the Fixed Income and OTC derivatives Markets Note: (1) 2013 as the base year. 8

9 Business Model Financing Unit Financing Unit represents 36% 1 of total Cetip s gross revenue Negotiation of vehicle purchase Analysis and credit approval Customer Delivery of Vehicle Resale Credit release Financial Institutions Insertion of information related to financial restrictions and contracts details into Cetip s systems Transmission of system s database to transit bodies Financial Institutions Market data and development of solutions Detran checks SNG to verify the existence of lien Detran The vehicle owner requests the document issuance by the Detran (Department of Motor Vehicle) Customer Emission of vehicle document Detran Note: (1) 2013 as the base year. 9

10 Financing Unit Sircof and Cetip Contratos Market Share (Sep/14) Sircof 49.4% Cetip Contratos 17.9% Total 67.3% Track record of Cetip Contratos* SC and RJ Aug/13 RS** Oct/13 MS Apr/14 SIRCOF DETRAN own system (fee) + Cetip Contratos * Rio de Janeiro state joined Cetip Contratos directly, while the other states migrated from Sircof to Cetip Contratos. ** In Rio Grande do Sul, Cetip Contratos had 57.8% market share on September 30,

11 More Solid Regulatory Environment for the Financing Unit BACEN DENATRAN o Resolution No 4,088/2012 o Letter No 67/2011 o Circular Letter No 3,596/2013 o Cetip registers credit operations related to vehicles given as collateral o Ordinance No 18/2014 o Cetip has been accredited by DENATRAN, under Ordinance No 18, to have access to its database for 5 years 11

12 Investment thesis in Cetip High exposure to growth in fixed income and credit markets; Resilient, diversified and vertically integrated business model; Strong cash generation with low execution risk and high predictability; Low capital requirement for implementing its business plan; Dividend yield growth. 12

13 Investment thesis in Cetip Cetip is the Latin America s largest depositary of private fixed income securities and Brazil s largest private asset clearinghouse. In addition, Cetip is the leading company in providing electronic delivery solutions of information required for the registration of contracts and financial restrictions by transit bodies. Highlights Main Financial Indicators Leading position in its two business units: - Securities Unit: Brazil s leader in the registration, custody, trading and settlement of private fixed income securities and OTC derivatives, acting as a unique and integrated solution for those markets. It also has an electronic trading platform for the secondary public and private security market. Further, it carries out the processing of interbank transfers (DOCs) and settlement of electronic funds transfers (EFTs) and bank payment slips - Financing Unit: Offering an integrated private electronic system for the entry, by financial agents, of financial restrictions related to vehicle financing transactions, covering all of such registrations in Brazil, and the custody of such information. It develops products and services that guide the main stages linked to the vehicle financing cycle. These products and services speed up credit analysis and approval, making access to financing easier, faster and safer Business model with high predictability of revenues and costs, and low needs for investment Over 15 thousand clients institutions use Cetip s services, among which are finance companies, investment funds, pension funds, brokerage firms, consortia, leasing and insurance companies R$ million M2014 CAGR Gross Revenue % Securities Unit % Financing Unit % Adjusted EBITDA¹ % EBITDA Margin 73.7% 72.8% 71.6% 71.1% Adjusted Net Income² % Net Margin 50.0% 53.3% 55.4% 55.5% Net Debt (50.3%) Net Debt / EBITDA 1.7x 1.0x 0.4x 0.2x 3 Shareholding structure 4 ICE 5 Board and Management Others 12.1% 2.9% 85.0% Listing on Novo Mercado Since its 2009 IPO Note: (1) Adjusted EBITDA excludes share-based incentives and equity in the results of associate; (2) Adjusted Net Income excludes share-based incentive without cash disbursement, amortization of intangible assets from the acquisition of GRV and the tax benefit from the goodwill amortization; (3) Calculated based on the EBITDA of the last 12 months; (4) Position on September 30, 2014; and (5) Intercontinental Exchange. 13

14 Strong Cash Generation, with Low Execution Risk and High Predictability High Operating Cash Generation + Low Investments Needs + Predictable Cost Structure Operating Cash Generation : CAPEX : Adjusted Operating Expenses 1 (ex-d&a 2 ): 26.3% 27.2% 28.5% 73.5% 79.5% 77.0% 5.5% 6.2% % % Net Revenue 26.6 Cost Structure with High Predictability ( %): General and administrative 15.0% Others 1.7% % Net Revenue % Net Revenue Outsourced services 29.0% Personnel 54.3% Nota: (1) Excludes expenses with share-based incentives; (2) D&A Depreciation and Amortization. 14

15 I. GENERAL OVERVIEW II. BUSINESS ENVIRONMENT III. 3Q14 RESULTS IV. GROWTH OPPORTUNITIES 15

16 Credit Market Expansion 30.7% Credit Growth 15.1% 20.6% 18.8% 16.4% 14.7% 11.7% Sep/14 * Source: Brazilian Central Bank * Last twelve months Credit Expansion in Brazil ,234 1,421 1, , , ,715 2, % Sep/14 0 Volume (R$ billion) % GDP Source: Brazilian Central Bank 16

17 Strong Growth Prospects for Debentures Market Volume of Issuance (R$ billion) Source: Cetip Number of Issuances Number of New Issuers Source: Cetip Source: Cetip Reduction in the Brazilian interest rate encourages the search for investments with higher risk and return Income tax exemption for investments in debentures related to infrastructure sector 17

18 Challenging Scenario in 2014 Vehicle Financing 14,304 14,138 9,458 9,295 Vehicle Sales (Million) 16,494 17,414 17,524 17,992 11,050 11,663 11,880 12,514 13,049 4,846 4,843 5,444 5,751 5,643 5,478 5,174 18, % % Penetration: Vehicle Financing/ Vehicle Sales * * Source: Fenabrave New vehicles % New vehicles financed / New vehicles sold % Used vehicles financed / Used vehicles sold * Last twelve months Used vehicles % Total vehicles financed / Total vehicles sold 55.4% 47.2% 67.4% 72.5% 48.3% 47.8% Source: SNG / Fenabrave * Last twelve months 67.3% 44.2% 38.3% 35.7% 32.8% 63.6% 64.2% 62.4% 39.7% 37.6% 35.3% 28.4% 26.0% 24.5% Individuals Delinquency Ratio Vehicle Financing 8% 7% 7% 6% 6% 5% 5% 4% 3.7% 4% 4.8% 6.6% 7.2% 7.0% 6.4% 5.2% Individuals Delinquency Individuals Delinquency Average (mar/11 - sep/14) 3% Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Source: Brazilian Central Bank % 18

19 I. GENERAL OVERVIEW II. BUSINESS ENVIRONMENT III. 3Q14 RESULTS IV. GROWTH OPPORTUNITIES 19

20 Highlights 3Q14 x 3Q13 Financial Gross Revenue: R$ million 15.3% Adjusted Net Income (cash earnings): R$ million 11.6% Securities Unit: R$ million 15.5% Adjusted Net Margin: 55.4% -0.5 p.p. Financing Unit: R$ million Net Revenue: R$ million Adjusted EBITDA: R$ million Adjusted EBITDA Margin: 72.0% 15.0% 12.5% 11.6% -0.6 p.p. Adjusted EPS 1 : R$ (R$ diluted) Cash Flow from Operations 2 : R$ million 5.3% 1 Adjusted basic earnings per share, based on the average weighted number of shares in the period. 2 Cash flow from operations before income tax and social contribution paid and before the allocation of excess cash for investments. 20

21 Highlights 3Q14 3Q14 shareholders' remuneration Interest on Shareholders Equity: Total Gross Amount: R$ 20.0 million Gross Amount per Share: R$ Interim Dividends: Total Amount: R$ 61.1 million Dividends per Share: R$ Total Distribution to Shareholders: R$ 81.1 million Payout of 75.0% of the 3Q14 Net Income 21

22 Revenue Performance By Business Unit Securities Unit Financing Unit +15.5% +6.0% % % +9.7% % Q13 2Q14 3Q14 9M13 9M14 3Q13 2Q14 3Q14 9M13 9M14 Cetip s Gross Revenue Breakdown 3Q14 3Q13 Market data and Develop. of solutions 5.8% Sircof 14.2% Other revenues 7.3% Registration 9.8%.Custody 23.4% Market data and Develop. of solutions 4.3% Sircof 13.4% Other revenues 7.7% Registration 10.7% Custody 21.9% SNG 15.3% Transactions 9.9% Monthly utilization 14.3% SNG 17.8% Transactions 9.4% Monthly utilization 14.8% 22

23 Financial Highlights Net Revenue +11.3% % +6.3% % Adjusted Operating Expenses 1 % of Net Revenue +14.8% 29.3% 28.0% +1.5% % % 28.9% Q13 2Q14 3Q14 9M13 9M14 Adjusted EBITDA & Margin (%) 72.6% 70.7% 72.0% 72.6% 71.1% 3Q13 2Q14 3Q14 9M13 9M14 Adjusted Net Income (cash earnings) & Margin (%) 55.9% 55.4% 55.4% 56.0% 55.5% +11.6% % % +10.4% % +6.4% Q13 2Q14 3Q14 9M13 9M14 3Q13 2Q14 3Q14 9M13 9M14 1 Excludes expenses with share based incentive and depreciation and amortization. 23

24 Revenues that Depend on Inflows Registration Securities Unit SNG Financing Unit +5.7% +10.9% % % -1.5% % Q13 2Q14 3Q14 9M13 9M14 3Q13 2Q14 3Q14 9M13 9M14 Sircof Financing Unit +21.7% % % Q13 2Q14 3Q14 9M13 9M14 24

25 Revenues that Depend on Stock Securities Unit Custody Monthly Utilization +23.1% +5.6% % % % % Q13 2Q14 3Q14 9M13 9M14 3Q13 2Q14 3Q14 9M13 9M14 Transactions +20.6% +8.2% % Q13 2Q14 3Q14 9M13 9M14 25

26 Other Revenues EFTs Processing Securities Unit -6.7% +8.1% % Market Data and Development of Solutions Financing Unit +56.6% % +53.6% Q13 2Q14 3Q14 9M13 91M4 3Q13 2Q14 3Q14 9M13 91M % Other Services¹ % % Q13 2Q14 3Q14 9M13 91M4 1 Includes other revenue from Securities Unit and Financing Unit, excluding revenues from EFTs processing (CIP). 26

27 Adjusted Operating Expenses Breakdown 1 3Q14: R$ 72.4 million 3Q13: R$ 63.0 million Expenses/other operating revenues 1.1% General and administrative 13.0% Expenses/other operating revenues 1.6% General and administrative 13.2% Outsourced services 27.3% Personnel ² 58.6% Outsourced services 28.2% Personnel ² 57.0% 1 Excludes expenses with share-based incentive, depreciation and amortization. 2 Includes expenses with board members and advisory committee. 27

28 100,0 80,0 60,0 40,0 20,0 0,0 Strong Cash Generation Cash Flow from Operations¹ CAPEX +5.3% % % 4.5% 7.4% 4.4% 5.4% +4.1% % +75.1% % Q13 2Q14 3Q14 9M13 91M4 3Q13 2Q14 3Q14 9M13 91M4 CAPEX % Net Revenue Net Debt & Net debt/ Adjusted EBITDA (12 months) Q13 2Q14 3Q14 Net Debt Net Debt / Adjusted EBITDA 1 Operational cash generation before income tax and social contribution paid and before the allocation of excess cash for investment. 28

29 Debt Refinancing 2 nd Debentures Issue (R$ million) Principal Amortization Schedule 2 nd Debentures Issue Characteristics 1 st Issue Cost: CDI % p.a. 2 nd Issue Cost: % DI (~CDI % p.a.) Single series, nonconvertible and unsecured 2. Public distribution with restricted placement efforts (ICVM 476) 3. Demand reached R$ 1.2 billion (~2.4 x the offer) Debt Swap Results Savings of ~R$ 5.0 million per year until 2017 (net of penalty related to 1 st issue debentures redemption and structuring cost related to 2 nd Issue) Bilateral Loan (US$ million) Principal Amortization Schedule (US$ million) Main Characteristics years term 2. Maturity date: August, Interest rate: 2.64% p.a., quarterly coupons 29

30 I. GENERAL OVERVIEW II. BUSINESS ENVIRONMENT III. 3Q14 RESULTS IV. GROWTH OPPORTUNITIES 30

31 Securities Business Unit Cetip Trader + ICE Link Complete solution for trading and post trading of fixed Cetip Colateral Constitution of financial assets collateral for the Cetip Certifica Seal that ensures the identification and actual registration of assets on behalf of the beneficial owner COE Funding instrument with profitability combining fixed and variable income Cetip Trader Captação Infrastructure for trading and registration of funding instruments for banks and financial entities CCP Central Counterpart for fixed income and OTC derivatives markets income instruments financial market 31

32 Securities Business Unit CCP Expansion of Services Offered for Fixed Income and OTC Derivatives Markets Negotiation Counterpart A Client Negotiation Counterpart B Client Clearing Clearing Member Clearing Member Main features of CCP Segregated special equity Settlement fund Collateral management Monitoring of risk exposure Margin call Settlement Securities Lending Increase the liquidity of fixed income securities Enable the performance of market makers in the trading system Cetip Expand the range of products OTC Derivatives Forward contracts of currency and indexes Flexible options of currency, stocks and indexes Swaps 32

33 Financing Business Unit Electronic Cetip Plataforma Imobiliária Gestão de Garantias Resolution Expansion of services for the mortgage market Insurance Expansion of services for the insurance market Cetip Infoauto Pagamentos Automates and Market Data Cetip Performance Cetip InfoAuto Análise Cetip Panorama Formalization Implementation of an electronic formalization flow for vehicle financing Automates the process of mortgage granting speeds up the process of vehicle financing 33

34 Investor Relations Contacts Willy Jordan CFO and Investor Relations Executive Officer Bernardo Garcia Investor Relations Manager Erika Lima Investor Relations Analyst Jean Karlus Teixeira Investor Relations Analyst This presentation was issued by CETIP S.A. Mercados Organizados ( Cetip, Company ). Cetip is authorized to operate by the Brazilian Securities and Exchange Commission ( CVM ) and regulated by both CVM and Brazilian Central Bank. This presentation may include statements representing expectations about future events or results of Cetip. These statements are based upon projections and analyses which reflect present views and/or expectations of the Management of the Company with regards to its performance and to the future of its business. Risks and uncertainties related to the Cetip s businesses, to the competitive and market environment, to the macro-economical conditions and other factors described in Risk Factors in the Reference Form, filed with the CVM, may cause effective results to differ materially from such plans, objectives, expectations, projections and intentions. 34