BVC 3Q17 Earnings Release. November 2, 2017

Transcription

1 1 BVC 3Q17 Earnings Release November 2, 2017

2 2 Our Value Proposition Bolsa de Valores de Colombia We are the strategic partner of the financial and capital market sectors in technology, information, trading and post-trading services Our Regional Presence Our Strengths Z Z Z Capital Markets & Issuer Services Technology Solutions & Innovation Information Services Post-Trading Services Equities Fixed Income Derivatives FX OTC Issuer Services Trading Systems Electronic Access Consultancy: Core Banking Treasury Capital Markets Market Data Assets Valuation Risk Management Tools Clearing Settlement Custody Shareholding 50% 54% 100% 33% 31% 23% Corporate Integration BVC Deceval Expected closing 4Q17 Revenues Growth 12% CAGR Diversified Revenues 31% 41% Capital Technology Markets Solutions LTM 3Q17 ROE Profitability LTM 3Q17 ROA 21% 15% Values for Shareholders 4.15% Dividend Yield 2016

3 3 Our Business Lines A complete service portfolio throughout the whole value chain Capital Markets & Issuer Services Technology Solutions & Innovation Information Services Post-Trading Services Growth Drivers Turnover - Interconnected Markets - Efficiency & Market Integrity Massification IT & Info Services that support Automation Regional Scope

4 4 Quarterly Consolidated P&L 3Q17 (COP Millions) Revenues growth totaled COP $ Million (-1% YoY) 1Q17 2Q17 3Q17 YTD 3Q17 YTD 3Q16 Var% Var$ Revenues (1) % (1.327) Ordinary revenues % (1.683) Other revenues % 356 Costs* % Expenses (2) % Ordinary expenses % Non ordinary expenses % Operating Profit % (10.975) Exchange Rate Differences (468) 87 (284) (665) (1.176) -43% 511 Income from equity method associates % 618 Profit before taxes % (10.729) Income taxes % (4.683) Total comprehensive income for the period % (6.046) Results attributable to: Controlling Company % (4.542) Not to the Controlling Company % (1.504) % (6.046) Consolidated EBITDA % (9.754) EBITDA Margin 24% 30% 27% 27% 35% Operating Margin 18% 23% 19% 20% 29% Net Margin 15% 18% 15% 16% 21% 3Q17 Revenues totaled COP$ million (-1% YoY) & (-6% QoQ) Non-trading revenues were COP$ million (+1% YoY) Trading revenues were COP$ million (-5% YoY) Subsidiary Ordinary Revenues were COP$ million (+6% YoY) BVC Ordinary Revenues were COP$ million (-9% YoY) 3Q17 Costs* totaled COP$ million (+19% YoY) & (+11% QoQ) 3Q17 Expenses totaled COP$ million (+10% YoY) & (-1% QoQ) Subsidiaries ordinary expenses were COP$ million (+14% YoY) BVC ordinary expenses were COP$ million (+9% YoY) 3Q17 EBITDA totaled COP$ million (-24% YoY) & (-15% QoQ) Quarterly Evolution Ordinary revenues (-4% QoQ) (-15% QoQ) Consolidated EBITDA *Costs: all costs comes from Sophos and are direct linked to projects developments (1) See appendix for more details slide 28 Consolidated Financial figures in IFRS (COP Millions). (2) See appendix for more details slide 29 See appendix for more details slides 44-47

5 5 Total Revenues YTD 3Q17 Total revenues (-1% YoY) Stable performance from non-trading business lines (+1% YoY) (-5%) (-23%) Listing Services: -69% Equities: -13% Derivatives: -4% (+8%) (+2%) (-66%) (+13%) Total Revenues Distribution by Business Lines 0% 15% 3% Total Revenues COP$ % Capital Markets Issuer Services Technology Solutions & Innovation Information Services 40% 10% Other Revenues 3Q16 Revenues Capital Markets Issuer Services Technology Solutions & Innovation Information Services Other Revenues Other Gains 3Q17 Revenues RECURRENT REVENUES 68% REVENUES TIED TO MARKET ACTIVITY 32% Issuer Services Information Services Technology Solutions and Innovation Capital Markets: Fixed Income Equities FX Derivatives OTC *Figures in COP$ Millions See appendix for more details slide 28

6 6 Capital Markets 3Q17 challenging results in all markets managed by BVC due to lower volatility in volumes Volume & Transaction Driven Revenue Business Line YTD 3Q17 3Q16 Var% Var$ (3) Capital Markets % Fixed Income % 90 Equity Market % Derivatives % -508 FX % 150 Performance in Capital Markets Business Line is driven by (3) : Fixed Income: traded volume totaled COP$782 trillion (-0,8% YoY) Equities: traded volume totaled COP$30,8 trillion (-4,1% YoY) Derivatives Total vol: COP$445 trillion (+8,3% YoY) OTC Vol: COP$349 Trillion (+14,7% YoY) Futures Vol: COP$96,4 trillion (-9,8% YoY) Futures contracts totaled 877K (-19,6% YoY) FX: traded volume totaled USD$196 billion (-11,1% YoY). Revenue Contribution YTD 3Q17 32% Capital Markets Revenue Revenue growth Var QoQ: 3Q17/2Q17 Capital Markets Strategy: Capital Markets: -8% Fixed Income: -6% Equities: -23% Derivatives: +2% FX: +0,2% Foster turnover liquidity Automate order management + interconnect markets Stimulate multi-market strategies Improve market structure and quality Reach more investors Fixed Income Equities FX Derivatives Capital Markets includes: Equities, Fixed Income (BVC and Set-Icap Securities), Derivatives (BVC s Futures and Set-Icap FX Swaps and Fwds) and FX (Set-Icap FX) *Figures in COP$ Millions (3) See appendix for more volume details slides 19-25

7 7 Issuer Services Bond Issuances increased by (+9% YoY) in 3Q17 Recurrent Revenue Business Line YTD Var% Var$ 3Q17 3Q16 Issuer Services % Annual Listing Fees % 653 Listing Services % Issuer Services Revenue Issuer Services Revenue as of 3Q17 is driven by (4) : Fixed Income Issuances totaled COP$8,5 trillion (+9% YoY) (Grupo Argos, Servicios Financieros S.A, Bancoldex, Banco Popular, Banco Caja Social, Grupo Sura, EEB, Titularizadora, Codensa, Davivienda, Inteconexión Eléctrica, Financiera de Desarrollo Territorial, Banco de Occidente, Banco Finandina, Grupo Aval, Corporación Financiera Internacional, Credifamilia) Tender Offers: totaled COP$165 Billion (-97% YoY). (Carvajal Empaques, Isagen, Biomax, Grupo Nutresa) Public offerings: totaled COP$ 603 billion (+38% YoY) (PEI - Patrimonio Estrategias Inmobiliarias) Revenue Contribution YTD 3Q17 10% Revenue growth Var QoQ: 3Q17/2Q17 Issuer Services: -9% Annual Listing Fees: -6% Listing Services: -23% Issuer Services Strategy: Specific financing needs / liquidity on equities and fixed income Marketplace lending + equity for SMEs Innovation Annual Listing Fees Listing Services *Figures in COP$ Millions Listing Services includes: Issuance sand public offerings, IPOs, Follow-Ons, Bond issuances, Tender Offers (4) See appendix for more issuance details slide 26

8 8 Technology Solutions & Innovation Sophos revenues growth increased by (+8% YoY) in 3Q17 Sophos is a regional player specialized in IT services for banking, capital markets and digital channels Revenue Contribution Recurrent Revenue Business Lines YTD 3Q17 3Q16 Var% Var$ Technology Solutions & Innovation % Sophos Solutions % % growth in Technology Solutions Business Line: Driven by growth in Sophos revenue in Colombia (+17% YoY) Mexico (-16,7% YoY) and Chile (-6,4% YoY). Colombia represents 89% of total revenues, Mexico 6%, Chile 3% and Panama 1% 40% YTD 3Q17 Sophos Revenue Revenue growth Var QoQ: 3Q17/2Q17 Sophos: -2% Colombia: -5% Chile: +16% Mexico: +28% Sophos Strategy: IT solutions to capital markets Deepen our presence in Colombia and increase our regional presence Strengthen our service offering and enhance our digital capabilities Colombia Mexico Chile Panama *Figures in COP$ Millions

9 GR Technology Solutions & Innovation Master Trader Project - BVC Trading Platform Upgrade All Markets in One Single Trading Platform G.R. Pre-Trade Phase 1: Nov 2017 Phase 2: 2Q18 Current Trading Infrastructure 78% Progress Master Trader: Fixed Income Market Master Trader: All Markets MEC Plus X-stream TW Fixed Income Public Debt Fixed Income Private Debt MEC Plus 8.1 Equities Derivatives X-stream CLASSIC Integrated Platform X-stream TW Fixed Income Public Debt* X-stream INET Fixed Income Private Debt MEC Plus 8.3 Equities Derivatives X-stream CLASSIC Integrated Platform Fixed Income Public Debt* Equities Derivatives MILA X-stream INET UTrader MILA Rapid Addition UTrader MILA Rapid Addition Optimized Trading Infrastructure Fixed Income Private Debt MEC Plus 8.3 *Includes: Primary and secondary market Migrating to: Nasdaq X-Stream INET New Features: Single trading platform for all Markets Pre-trade risk management Market monitoring capabilities Algorithmic and HFT protocols

10 10 Information Services Slight increase in revenues as of 3Q17 Recurrent Revenue Business Line YTD 3Q17 3Q16 Var% Var$ Information Services % 394 Terminals % 118 Intermediary Access % -45 Market Data % 75 Price Vendor (Infovalmer) % 381 Education % -135 Information Services Revenue Revenues in Information Services is driven by: ETF icolcap AUM: totaled COP$3,58 trillion (+133% YoY). As of September 2017 market data totaled 35 vendors Electronic orders 96% of the total routing Revenue Contribution 15% YTD 3Q Terminals Intermediary Access Market Data Price Vendor (Infovalmer) Education Revenue growth Var QoQ: 3Q17/2Q17 Information: +7% Terminals: +3% Intermediary Access: -3% Market Data: -2% Price Vendor: +13% Education: +87% Information Services Strategy: Financial information Hub Analytics and second-generation services Real time data for risk management and automated trading Broader access through education and digital channels *Figures in COP$ Millions

11 11 Post-Trading Services We are consolidating the Colombian capital markets value chain The transaction BVC - DECEVAL will bring greater financial soundness Operating Revenues LTM 3Q17 Revenue Distribution by business lines % 18% 22% Capital Markets 21% Issuer Services Technology Solutions & Innovation Information Services BVC DECEVAL Combined Pro-forma 29% Post-Trading Revenue Distribution by type Complementary businesses that bring: Greater scale and financial strength 22% Trading Revenues Resilient, attractive and diversified revenue distribution thanks to the diversification strategy Greater participation of non-trading revenues reducing its volatility 78% Non-Trading Revenues Expansion of recurrent revenues in post-trading, keeping the potential upside in trading revenues Greater profitability for shareholders: significant value creation from combined synergies in revenues and expenses Figures in COP$ Billions as of LTM 3Q17 Synergies not included

12 12 SFC: Financial Superintendence of Colombia (financial supervisor) SIC: Superintendence of Industry and Commerce (antitrust authority) * Implementation phase after transaction closing Post-Trading Services BVC DECEVAL Transaction: Timeline Follow Up After the approval from both Shareholders' Meetings, regulatory and corporate procedures, the closing of the Transaction is subject to regulatory approvals from SFC and SIC Mar 24/28 T1 + N1 T2 + N2 T3 + N3 T4 T4 + N4 N1: Days T1 T2 N2: SFC Time T3 N3: SFC and SIC Time N4: Days T5 Shareholders Meetings Regulatory Procedures Execution of Master Agreement Regulatory Review SFC and SIC Transaction Closing DECEVAL Extraordinary Meeting (Mar 24) Approval of corporate bylaws amendment BVC Ordinary Shareholders Meeting (Mar 28) Approvals: Transaction Corporate bylaws amendment Formal filing of the Issuance Rules before the SFC (Apr 6) Emission of the Issuance Rules by BVC s Board of Directors (Apr 26) Approval of the Issuance Rules by the SFC (Jun 1) Execution of master agreement (Jun 27) Acceptances by Deceval s shareholders (Jul 4) Launch of private offering of shares by BVC (Jul 6) Approval from SFC of the acquisition made by the BVC of the shares contributed by the current shareholders of DECEVAL Subscription of shares Registration in BVC s shareholders ledger Registration in the chamber of commerce Shares issuance Preemptive rights waiver Expected closing : 4Q17 Integration Project Phases with an International Consultant Company: Planning Implementation*

13 13 BVC: Subsidiaries and Long Term Investments (3) $ % YoY $ % YoY $ % YoY $ % YoY $ % YoY $ % YoY Individual $ %YoY $ ,98% $ %YoY $ %YoY $ % YoY $ % YoY $ % YoY 54% 32,6% $ % YoY $ % YoY $ % YoY Consolidated $ %YoY $ %YoY 100% 30,8% $ %YoY $ % YoY $ % YoY $ ,5% YoY $ % YoY $ % YoY 50% 50% 50% 0,07% $ ,2% YoY $93-3% YoY $-386-4% YoY $ % YoY $ % YoY Subsidiaries Long Term Investments $ % YoY $176-3% YoY *Figures in COP$ Millions *As of 3Q17 (3) See appendix for more details slides 33-42

14 14 Total Expenses 3Q17 Total expenses increased by (+13% YoY) Costs* increased by (+19% YoY) and expenses by (+8% YoY) YTD 3Q17 3Q16 Var% Var$ Expenses % Costs* % Expenses from Ordinary Activities (4) % Employee Benefit Expenses % BVC % Subsidiaries % Depreciation & Amortization Expenses % Depreciations % 391 Amortizations % 830 Other Ordinary Expenses % (918) Services and Manteinance % 256 Fees % (719) Taxes % (17) Marketing and Branding % 11 Other Expenses % (448) Projects Expenses % 260 Issuences Expences % (277) Projects % (17) Non-Ordinary Activity Expenses % (+13%) (+15%) (+18%) (+381%) Q16 Expenses Costs Employee Benefit Expenses Depreciation & Amortization Expenses (-4%) (-1%) Other Ordinary Expenses Projects Non-Ordinary Activity Expenses 3Q17 Expenses Acumulado / YTD CAPEX - BVC 3Q17 3Q16 Var% Var$ CAPEX - BVC % Total Expense Distribution by Categories 2% 2% 21% Total Expenses 9% COP$ % 34% Costs Employee Benefit Expenses Depreciation & Amortization Expenses Other Ordinary Expenses Projects Non-Ordinary Activity Expenses (4) *Figures in COP$ Millions Consolidated Financial Statements in IFRS See appendix for more details slide 29 *Costs: all costs comes from Sophos and are linked to projects developments Other Expenses includes: leases, contributions, Insurances, travel expenses and sundries

15 15 Consolidated Balance Sheet 3Q17 (COP Millions) 3Q17 3Q16 Var% Var $ Total Assets (5) % (7.019) Current Assets % (14.132) Non Current Assets % Total Liabilities (6) % (8.246) Current Liabilities % (8.320) Non Current Liabilities % 75 Total Stockholders' Equity (7) % Liabilities + Stockholders' Equity % (7.019) Total Assets Total Liabilities Total Stockholders' Equity Consolidated Financial Statements in IFRS (5) See appendix for more details slides 30 and 45 (6) See appendix for more details slides 31 and 46 (7) See appendix for more details slides 32 and 47

16 16 BVC Ownership Structure Foreign shareholders represents 47% of BVC s ownership Shareholders Distribution Universities 7% Real Sector 15% Retail Investors 3% Pension Funds 14% Brokerage Firms 14% Shareholder's Distribution Less Than 1% 926 Shareholders 26% Ownership Between 1% - 5% 15 Shareholders 33% Ownership Foreign Investment Funds 47% Between 5% - 10% 5 Shareholders 41% Ownership Total 946 Shareholders October 2017 BVC Stock: Listed since June 22th Free Float: 41%* Stock type: Common voting shares Shares outstanding: Ownership Restriction: 10% shareholding restriction of the BVC according to Colombian law 510 of All brokers must have 91 million shares (0,48%) to trade at the Colombian market. Board of Directors 6 13 Members 7 *According to the article of decree 2555

17 17 Thank You For further information please contact: Carlos Barrios Director of Investor Relations Office & Corporate Social Responsibility Bolsa de Valores de Colombia Tel. (+57 1) Ext

18 18 Appendix

19 19 Fixed Income BVC Market Highlights YTD 3Q17 Traded Volume* (COP Trillions) Equity Market Var YoY: -0,8% Var YoY: -4,1% Q16 3Q17 Includes: electronic, OTC and Set Icap Securities volumes. Derivatives Market 3Q16 3Q17 Includes: cash equities, repos and securities lending. FX (USD Billions) Var YoY: +8,3% Var YoY: -11,1% Q16 3Q17 3Q16 3Q17 Includes standardized and OTC Through the subsidiary Set Icap FX

20 20 Total Traded YTD* (COP Trillions) Total Traded Quarterly Volume Var YoY: -5% Var QoQ: -2,9% Var YoY: - 3,8 % Q16 3Q17 Volume Distribution Fixed Income FX Derivatives Equity Market Listing Services 31% Fixed Income Var YoY: -54% 2% 24% COP$ % Equity Market Derivatives FX 3Q16 20,3 3Q17 9,3 Includes: Equity Market (Cash equities, Repos and Securities lending), Fixed Income Market (Electronic, OTC and Set Icap Securities), Derivatives Market and FX. Includes issuances: Equity Market, Fixed Income Market, Public Offerings and State owned companies public offerings.

21 21 Fixed Income Market (COP Trillions) Total Volume Var YoY: -14,8% Var QoQ: -13,6% Var YoY: -15,7% Var QoQ: -18,9% 2,8 3,1 3,0 ADTV 2,8 1,3 1,3 1,4 1,3 1,4 Var YoY: -11,6% Var QoQ: -13,8% 3,1 3,0 2,6 1,5 Var YoY: -13% Var QoQ: -21,5% 1,2 OTC Electronic Var YoY: -14,4% Var QoQ: -10,9% Net Buyers 5% Banks OTC Electronic 1% 29% 9% 5% 10% 31% 10% Investment Funds Other Financial Institurions Foreign Investors Pension Funds Retail Investors Brokerage Firms Real Sector

22 22 Equity Market (COP Trillions) Total Volume 10,4 11,4 10,4 9,9 9,9 11,7 9,3 0,2 0,5 0,2 1,4 0,2 0,2 1,5 0,5 1,3 1,5 0,4 1,4 1,8 1,6 Var YoY: -10,7% Var QoQ: -20,8% Var YoY: +58,0% Var QoQ: -21,7% Var YoY: +7,6% Var QoQ: +3,9% ADTV (COP Billions) Var YoY: -12,8% Var QoQ: -27,1% Repos + Sec Lending Equity 120 Var YoY: +18% Var QoQ: -5,2% Var YoY: -15,5% Var QoQ: -24,6% 14% 3% Net Buyers 1% 4% Cash Equities Repos Sec Lending 24% 10% 16% 28% ADR Programs Others Mutual Funds Foreign Investors Pension Funds Real Sector Brokerage Firms Retail Investors

23 23 Millones Equity Market (COP Trillions) INDEX YoY Var% YTD Var% QoQ Var% COLCAP 11,1% 10,5% 0,4% COLEQTY 11,2% 10,5% 0,6% COLIR 12,4% 11,5% 0,6% COLSC -2,0% -3,9% -1,2% BVC Indices INDEX YoY Var% YTD Var% QoQ Var% IPSA 33,0% 28,8% 3,7% COLCAP 11,1% 10,5% 0,4% SPBLPGPT 21,1% 19,2% 5,2% MEXBOL 6,6% 10,2% -1,7% IBOV 25,6% 23,0% 2,8% LATAM Indices Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep COLCAP COLEQTY COLIR COLSC Market Cap Var YoY: +9,2% Var QoQ: +4,3% Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 COLCAP IPSA SPBLPGPT IBOV MEXBOL $ 25 MILA Volume (USD millions) $ $ 15 $ $ 5 22 Var YoY: +100,3% Var QoQ: -19,3% $ 0 1Q16 2Q16 3Q16 4Q16

24 24 Derivatives Market (COP Trillions) OTC Volume through Set Icap FX. OTC Volume FWDs SWAPs IRS Standardized Volume Var YoY: +26,7% Var QoQ: +17,8% Var YoY: -8,1% Var QoQ: -5,1% ,3 0,3 0,3 0,3 0,3 0, , ,7 1,6 1,6 1,6 0,5 0,6 0,6 0,4 0,5 1,8 1,8 2,1 0,6 0, Futures # of Future Contracts ADTV OTC Var YoY: +30,9% Var QoQ: +14% Var YoY: -5,1% Var QoQ: -8,3% Var YoY: -33% Var QoQ: -12,4% Interest R. Futures USD Futures Stock Futures Traded Volume through BVC

25 25 Jan-16 Feb-16 Mar-16 Source: Colombian Central Bank Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 FX Market (USD Billions) Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Total Volume ADTV (USD Millions) Var YoY: -4,5% Var QoQ: -3,1% Var YoY: -7,6% Var QoQ: +0,2% Exchange Rate Evolution ,67 Sep Traded Volume through the subsidiary Set Icap FX

26 26 Issuances (COP Billions) Bonds Issuances Public Offerings 4,1 3,0 3,0 3,2 6,5 0,7 1,8 1,9 1,2 3,0 0,2 1,8 0,8 0,1 0,4 0,7 0,1 0,6 Issue of Shares Tender Offers SOE-PO * SOE-PO : State Owned Enterprises public offering

27 BVC Stock 3Q17 (COP Millions) Market Cap Var YoY: +42,4% Var QoQ: +2% Traded Volume Var YoY: -80,3% Var QoQ: -2,1% 921 ADTV BVC Stock Price (COP) Var YoY: +42,4% Var QoQ: +2% Var YoY: -79,6% Var QoQ: -5,3% ,8 18,0 17,7 21,7 24,3 24,7 25,2

28 28 Total Revenues 3Q17 (COP Millions) YTD Var% Var$ 3Q17 3Q16 Revenues % Revenues from Ordinary Activities % Capital Markets % Fixed Income % Equities % Derivatives (Standardized) % Derivatives Set Icap FX (OTC) % FX % Set Icap Securities % Issuer Services % Annual Listing Fees % Listing Services % Information Services % Terminals % Intermediary Access % Market Data % Price Vendor (Infovalmer) % Information FX % Education % Technology Solutions & Innovation % Sophos Solutions % Other Revenues % Other Revenues from Ordinary Activities % Other Gains % Consolidated Financial Statements in IFRS Capital Markets includes: Equities, Fixed Income (BVC and Set-Icap Securities), Derivatives (BVC s Futures and Set-Icap FX Swaps and Fwds) and FX (Set-Icap FX)

29 29 Expenses from Ordinary Activities 3Q17 (COP Millions) BVC YTD 3Q17 3Q16 Var% Var$ Expenses from Ordinary Activities % Employee Benefit Expenses % Depreciation & Amortization Expenses % Depreciations % 356 Amortizations % 717 Other Ordinary Expenses % Services and Manteinance % (24) Fees % 727 Taxes % (406) Marketing and Branding % (17) Other Expenses % 876 SUBSIDIARIES YTD 3Q17 3Q16 Var% Var$ Expenses from Ordinary Activities % Employee Benefit Expenses , ,10 23% Depreciation & Amortization Expenses 808,68 545,63 48% 263 Depreciations 274,14 239,33 15% 35 Amortizations 534,55 306,30 75% 228 Other Ordinary Expenses 7.806, ,21 0% (19) Services and Manteinance 2.332, ,10-11% (276) Fees 2.565, ,10 7% 165 Taxes 1.224,84 692,46 0,77 532,38 Marketing and Branding 85,65 84,65 1% 1 Other Expenses 1.597, ,90-22% (441) Intangible Amortization % (154) Expenses Distribution by Company 1% 4% BVC 44% 8% 43% Sophos Set Icap FX Set Icap Securities Infovalmer SOPHOS YTD 3Q17 3Q16 Var% Var$ Expenses from Ordinary Activities % Costs % Total Expenses % Expenses from Ordinary Activities YTD 3Q17 3Q16 Var% Var$ Set Icap FX % (325) Set Icap Securities % (233) Infovalmer % 41 Invesbolsa 1 - n/a 1 Total Expenses % (516) Intercompany Transactions (3.182) (1.765) 80% (1.417) Non-Ordinary Activity Expenses % Total Expenses % Costs* % *Costs: all costs comes from Sophos and are linked to projects developments Intangible Amortizations: Good will from Sophos transaction Consolidated Financial Statements in IFRS Other Expenses includes: leases, contributions, Insurances, travel expenses and sundries

30 30 Total Assets 3Q17 (COP Millions) 3Q17 3Q16 Var% Var$ Total Assets % (7.019) Current % (14.132) Cash and cash equivalents % Trade debtors and other accounts receivable % (942) Current Tax Assets % (9.160) Related parties % 136 Other Current Financial Assets % (8.365) Non-Current % Property and equipment % Other intangible assets % Deferred Tax Assets % (2.971) Investments held under equity method % Intangible Assets by Value Added % 243 Other non-current financial assets % (185) Other non-current non-financial assets % (1.220) 22% Cash and cash equivalents Current Tax Assets 0% Other Current Financial Assets Other intangible assets Assets Distribution 12% 13% 1% 0% 15% Total Assets COP$ % 12% 1% 2% 6% Trade debtors and other accounts receivable Related parties Property and equipment Deferred Tax Assets Indemnity Asset Intangible Assets by Value Added Investments held under equity method Other non-current financial assets Other non-current non-financial assets Consolidated Financial Statements in IFRS

31 31 Total Liabilities 3Q17 (COP Millions) Liabilities Distribution 3Q17 3Q16 Var% Var$ Liabilities % (8.246) Current % (8.320) Trade creditors and other accounts payable % Employee benefits % (5.778) Dividends Payable % Income taxes and CREE % (14.212) Deferred Income % 31 Current tax liabilities % 236 Non-Current % 75 Employee benefits % 307 Financial Liabilities % Estimated Liabilities % Payable Future Payments % (9.398) Non current defferred taxes % % 12% 6% 3% 1% 16% 17% Total Liabilities COP$ % Trade creditors and other accounts payable Dividends Payable Deferred Income Employee benefits Estimated Liabilities Non current defferred taxes 23% 14% Employee benefits Income taxes and CREE Current tax liabilities Financial Liabilities Payable Future Payments Consolidated Financial Statements in IFRS

32 32 Stockholders Equity 3Q17 (COP Millions) Stockholders Equity Distribution 3Q17 3Q16 Var% Var$ Equity Attributable to the Parent Company Owners % Subscribed and paid-in capital % - Reserves % Results from prior period % 136 Results for the period % (4.543) Other Results % 682 Capital surplus % - Non-Controlling Interest % (2.013) 11% 12% 18% 16% Stockholders Equity COP$ % 43% Total Stockholders Equity % Total Liabilities + Stockholders' Equity % (7.019) Subscribed and paid-in capital Results from prior period Other Results Reserves Results for the period Capital surplus Consolidated Financial Statements in IFRS

33 33 *Figures in COP$ Millions *EBITDA = Operating Profit + Amortization + Depreciation Subsidiaries P&L YTD 3Q17 YTQ 3Q16 VAR % VAR $ Revenues % Ordinary Revenues % Other Revenues % 7 Costs % Expenses % Ordinary Expenses % Non-Operating Expenses % Operating Profit % Profit Before Taxes % Income Tax % - 92 Net Profit % EBITDA % EBITDA Margin 18% 28% Net Margin 10% 18% BALANCE SHEET 3Q17 3Q16 VAR % VAR $ Assets % Liabilities % Equity % Total Liabilities & Equity % Sophos as of 3Q17 presents a (+12% YoY) growth in revenues. By country Colombia represents 89% of total revenues, Mexico 6%, Chile 3% and Panama 1%. BVC increased its shareholding in Sophos from 51% to 54,19% and paid in cash $483M for shares (3,19%) Quarterly Evolution Ordinary Activity Revenues EBITDA

34 34 *Figures in COP$ Millions *EBITDA = Operating Profit + Amortization + Depreciation Subsidiaries P&L YTD 3Q17 YTQ 3Q16 VAR % VAR $ Revenues % Ordinary Revenues % - 87 Other Revenues % - 43 Expenses % Ordinary Activity Expenses % Non-Operating Expenses % - 14 Operating Profit % 238 Profit Before Taxes % 210 Income Tax % 113 Net Profit % 97 EBITDA % 357 EBITDA Margin 53% 50% Net Margin 29% 28% In 3Q17, the traded volume in the USD cash market through Set-Icap FX totaled USD$ 196 billion (-11,1% YoY). On the OTC derivatives side, forwards totaled COP$284 trillion (+9,5 YoY), Swaps COP$35,5 trillion (+28,6 YoY) and IRS totaled COP$30 trillion (+70,5% YoY) Quarterly Evolution BALANCE SHEET 3Q17 3Q16 VAR % VAR $ Assets % Liabilities % Equity % 97 Total Liabilities & Equity % Ordinary Activity Revenues EBITDA

35 *Figures in COP$ Millions *EBITDA = Operating Profit + Amortization + Depreciation 35 Subsidiaries P&L YTD 3Q17 YTQ 3Q16 VAR % VAR $ Revenues % Ordinary Revenues % - 27 Other Revenues % Expenses % Ordinary Activity Expenses % Non-Operating Expenses % - 12 Operating Profit % 206 Profit Before Taxes % 2 Income Tax % 8 Net Profit % - 6 EBITDA % 209 EBITDA Margin 20% 1% Net Margin 14% 12% BALANCE SHEET 3Q17 3Q16 VAR % VAR $ Assets % Liabilities % Equity % 19 Total Liabilities & Equity % In 3Q17 the traded volume in the OTC fixed income totaled COP$5,4 trillion (-3,5% YoY) Quarterly Evolution Ordinary Activity Revenues EBITDA

36 36 *Figures in COP$ Millions *EBITDA = Operating Profit + Amortization + Depreciation Subsidiaries P&L YTD 3Q17 YTQ 3Q16 VAR % VAR $ Revenues % 403 Ordinary Revenues % 403 Other Revenues % - 0 Expenses % 101 Ordinary Activity Expenses % 41 Non-Operating Expenses % 60 Operating Profit % 362 Profit Before Taxes % 302 Income Tax % 124 Net Profit % 178 In 3Q17 Infovalmer reported a (+7,6% YoY) growth in revenues. Quarterly Evolution EBITDA % 343 EBITDA Margin 41% 38% Net Margin 23% 22% BALANCE SHEET 3Q17 3Q16 VAR % VAR $ Assets % 356 Liabilities % 263 Equity % 93 Total Liabilities & Equity % Ordinary Activity Revenues EBITDA

37 37 Long Term Investments P&L YTD 3Q17 YTD 3Q16 VAR % VAR $ Revenues % Ordinary Revenues % Other Revenues % Expenses % 850 Ordinary Activity Expenses % Non-Operating Expenses % Operating Profit % Profit Before Taxes % Income Tax % 614 Net Profit % 630 EBITDA % EBITDA Margin 53% 52% Net Margin 30% 30% BALANCE SHEET 3Q17 3Q16 VAR % VAR $ Assets % Liabilities % Equity % Total Liabilities & Equity % As of 3Q17, the private Colombian CSD, securities under custody for COP$483 trillion (+8,5% YoY), the dematerialized issuances totaled COP$468 trillion (+8,7% YoY), Securities Administration reached COP$30,7 trillion (-7,5% YoY) and the DVP transactions totaled 124K (-4,2% YoY) Quarterly Evolution Ordinary Revenues EBITDA *Figures in COP$ Millions *EBITDA = Operating Profit + Amortization + Depreciation Other Revenues Includes: Certificates, affiliations, subscriptions and dematerialized promissory notes Source: Deceval Other Expenses includes: leases, contributions, Insurances, travel expenses and sundries - Source: SFC

38 38 Long Term Investments Operating Revenues: Operating Expenses: Custody Securities Administration Transactions Deposit of Issuances Others Expenses from Ordinary Activities Employee Benefit Expenses Depreciation & Amortization Expenses Depreciations Amortizations Other Ordinary Expenses Services and Manteinance Fees Taxes Other Expenses Income Tax CAPEX *Figures in COP$ Millions *EBITDA = Operating Profit + Amortization + Depreciation Other Revenues Includes: Certificates, affiliations, subscriptions and dematerialized promissory notes Source: Deceval Other Expenses includes: leases, contributions, Insurances, travel expenses and sundries - Source: SFC

39 39 Long Term Investments Custody Statistics (COP Trillions): Transactions Statistics: (Thousands) Securities under Custody Dematerialized Securities Securities Administration LP Transactions DVP Transactions

40 40 *Figures in COP$ Millions *EBITDA = Operating Profit + Amortization + Depreciation Long Term Investments P&L YTD 3Q17 YTD 3Q16 VAR % VAR $ Revenues % Ordinary Revenues % Other Revenues % 140 Expenses % 575 Ordinary Activity Expenses % 225 Non-Operating Expenses % 350 Operating Profit % Profit Before Taxes % Income Tax % 467 Net Profit % 566 As of 3Q17 CRCC cleared and settled 1.5 million contracts in standardized derivatives (+55% YoY). The value of open interest totaled COP$45 trillion (+49% YoY) through 42 members of the derivatives market. In the OTC derivatives the CCP cleared and settled NDFs in USD by UDS$66 billion (+78% YoY) and in OIS and IBR (interest rates) totaled COP$28 trillion (+73% YoY). Quarterly Evolution EBITDA % 530 EBITDA Margin 45% 46% Net Margin 26% 25% BALANCE SHEET 3Q17 3Q16 VAR % VAR $ Assets % Liabilities % Equity % Total Liabilities & Equity % Ordinary Activity Revenues EBITDA

41 41 *Figures in COP$ Millions *EBITDA = Operating Profit + Amortization + Depreciation Long Term Investments P&L YTD 3Q17 YTD 3Q16 VAR % VAR $ Revenues % Ordinary Revenues % Other Revenues % 745 Expenses % Ordinary Activity Expenses % Non-Operating Expenses % 0 Operating Profit % Profit Before Taxes % - 2 Income Tax % - 6 Net Profit % 4 EBITDA % EBITDA Margin 31% 35% Net Margin 23% 22% BALANCE SHEET 3Q17 3Q16 VAR % VAR $ Assets % Liabilities % 70 Equity % 975 Total Liabilities & Equity % As of 3Q17 CCDC cleared USD$206 billion (-11,5% YoY) with 303K transactions (-23,7% YoY) and ended with a liquidity saving of 84,0% (-2,0% YoY) Quarterly Evolution Ordinary Activity Revenues EBITDA

42 42 *Figures in COP$ Millions *EBITDA = Operating Profit + Amortization + Depreciation Long Term Investments P&L YTD 3Q17 YTD 3Q16 VAR % VAR $ Revenues % 1 Ordinary Revenues % - 3 Other Revenues % 4 Expenses % 4 Ordinary Expenses % - 21 Non-Operating Expenses % 25 Operating Profit % 18 Profit Before Taxes % - 3 Income Tax - - Net Profit % - 3 0% EBITDA % 18 EBITDA Margin -417% -421% Net Margin -454% -453% Derivex as of 3Q17, the traded volume totaled COP$9,25 billion (-55,0% YoY) with 461 contracts (-4,2% YoY) and with an energy volume of 56,1 Gwh (-49,3% YoY) Quarterly Evolution BALANCE SHEET 3Q17 3Q16 VAR % VAR $ Assets % 363 Liabilities % 126 Equity % 237 Total Liabilities & Equity % Ordinary Activity Revenues EBITDA -110

43 43 *Figures in COP$ Millions *EBITDA = Operating Profit + Amortization + Depreciation Other Revenues includes: Other gains + Equity method See appendix for more details slides BVC Individual Financial Ratios P&L YTD 3Q17 YTD 3Q16 VAR % VAR $ Revenues % Ordinary Activity Revenues % Other Revenues % Expenses % Ordinary Activity Expenses % Non-Operating Expenses % Operating Profit % Profit Before Taxes % Income Tax % Net Profit % EBITDA % EBITDA Margin 22% 35% Net Margin 23% 29% Quarterly Evolution Balance Sheet 3Q17 3Q16 VAR % VAR $ Assets % Liabilities % Equity % Total Liabilities & Equity % Ordinary Activity Revenues EBITDA

44 44 Consolidated Income Statement 3Q17 (COP$ Millions) CONCEPTO / CONCEPT Sep-17 Sep-16 VAR $ % Ingresos / Revenues (1.328) -1% Ingresos ordinarios / Ordinary revenues (1.683) -1% Otras Ganancias / Other Gains % Costos / Costs % Gastos / Expenses % Gastos ordinarios / Ordinary expenses % Otras Pérdidas / Other Losses % Utilidad/Pérdida Método de Participación Asociadas Income/Loss From Equity Method Associates % Diferencia en Cambio / Exchange Rate Differences (665) (1.176) % Utilidad o pérdida antes de impuestos / Profit before taxes (10.728) -27% Impuesto de Renta y Complementarios y CREE / Income taxes (4.682) -30% Utilidad o pérdida neta del ejercicio / Net profit for the period (6.046) -25% Total Resultado Integral / Total Comprehensive Income for the Year (6.046) -25% Resultados Atribuibles a la Controlante / Results Attributable to the Controlling Company Resultados No Atribuibles a la Controlante / Results Not Attributable to the Controlling Company (4.543) -25% (1.503) -24% Consolidated Financial Statements in IFRS

45 45 Consolidated Balance Sheet 3Q17 (COP$ Millions) ACTIVOS / ASSETS CONCEPTO / CONCEPT Sep-17 Sep-16 VAR $ % Activo corriente / Current assets Efectivo y Equivalentes al Efectivo / Cash and Cash Equivalents % Otros Activos Financieros Corrientes / Other current financial assets (8.365) -42% Transacciones entre partes relacionadas / Related parties % Deudores Comerciales y otras Cuentas por Cobrar / Trade Debtors and Other Accounts Receivable (942) -4% Activos por Impuestos Corrientes / Current Tax Assets (9.160) -81% Total Activo Corriente / Total Current Assets (14.132) -18% Activo no Corriente / Non-Current Assets Otros Activos Financieros no Corrientes / Other Non-current Financial Assets (185) -40% Otros Activos no Financieros no Corrientes / Other Non-Current Non-Financial Assets (1.220) -47% Garantias Operación / Transaction Guarantees N/A Inversiones bajo Método de Participación / Investments Held under Equity Method % Inversiones en subsidiarias y negocios conjuntos / Investments in subsidiaries and joint ventures - 30 (30) -100% Activos intangibles distintos del Goodwill / Other Intangible Assets % Activos Intagibles por Plusvalía / Intangible asstes by Value Added % Propiedades y Equipo / Property and Equipment % Activos por Impuestos Diferidos / Deferred tax assets (2.971) -87% Total Activo no Corriente / Total Non-Current Assets % TOTAL ACTIVOS / TOTAL ASSETS (7.019) -4% Consolidated Financial Statements in IFRS

46 46 Consolidated Balance Sheet 3Q17 (COP$ Millions) PASIVOS / LIABILITIES CONCEPTO / CONCEPT Sep-17 Sep-16 VAR $ % Pasivo Corriente / Current liabilities Otros Pasivos Financieros Corrientes / Other Current Financial Liabilities N/A Beneficios a Empleados / Employee Benefits (5.778) -47% Dividendos por Pagar / Dividends Payable % Acreedores Comerciales y Otras Cuentas por Pagar / Trade Creditors and Other Accounts Payable % Pasivos por Impuestos Corrientes / Current Tax Liabilities % Impuesto de Renta y Complementarios y CREE / Income Taxes and CREE (14.212) -99% Ingresos Recibidos por Anticipado / Deferred Income % Total Pasivo Corriente / Total Current Liabilities (8.320) -22% Pasivo no corriente / Non-Current Liabilities Beneficios a Empleados / Employee Benefits % Obligaciones Financieras / Financial Liabiliities % Pasivos estimados / Estimated Liabiliities % Pagos Futuros Comprometidos / Payable Future Payments (9.398) -100% Impuestos Diferidos no Corrientes / Non-Current Deferred Taxes % Total Pasivo no Corriente / Total Non-current Liabilities % TOTAL PASIVOS / TOTAL LIABILITIES (8.246) -15% Consolidated Financial Statements in IFRS

47 47 Consolidated Balance Sheet 3Q17 (COP$ Millions) CONCEPTO / CONCEPT Sep-17 Sep-16 Patrimonio Atribuible a los Propietarios de la Matriz / Equity Attributable to the Parent Company Owners VAR $ % Capital Suscrito y Pagado / Subscribed and Paid-in Capital % Superávit de Capital / Capital Surplus % Reservas / Reserves % Resultados del Ejercicio / Results for the Period (4.543) -25% Resultados de Ejercicios Anteriores / Results from Prior Period % Otros Resultados Integrales / Other Comprehensive Income % Total Patrimonio Atribuible a los Propietarios de la Matriz / Total Equity Attributable to Parent Company Owners % Participación no Controlada / Non-Controlling Interest (2.013) -14% TOTAL PATRIMONIO / TOTAL SHAREHOLDERS EQUITY % TOTAL PASIVO Y PATRIMONIO / TOTAL LIABILITIES AND SHAREHOLDERS EQUITY (7.019) -4% Consolidated Financial Statements in IFRS

48 48 Individual Income Statement 3Q17 (COP$ Millions) CONCEPTO / CONCEPT sep-17 sep-16 VAR $ % Total Ingresos / Total Revenues (4.042) -7% Ingresos ordinarios / Ordinary revenues Servicio Transaccional y de Registro / Trading & OTC Services (5.269) Renta Fija / Fixed Income Renta Variable / Equity Market (1.505) (1.653) Derivados / Derivatives (117) Terminales / Terminals Conexión SAE / SAE (Access Services for Intermediaries) (45) Total Servicios a Emisores e Información / Total Issuers & Market Data Services (3.764) Publicación y Suscripcion de Información / Market Data (71) Inscripción y Sostenimiento de Titulos / Annual Listing Fees Operaciones Especiales / Listing Services (4.180) Educación / Education (135) Servicios IT / IT Services (32) Otras Ganancias* / Other Gains % -5% 193 2% -13% -4% 118 6% -3% -17% -1% 653 7% -69% -13% -10% % Individual Financial Statements in IFRS

49 49 Individual Income Statement 3Q17 (COP$ Millions) CONCEPTO / CONCEPT sep-17 sep-16 VAR $ % Total Gastos / Total Expenses % Gastos ordinarios / Ordinary expenses % Gastos de Personal / Personnel Expenses % Honorarios / Fees % Impuestos / Taxes (406) -25% Arrendamientos / Leases % Contribuciones y Afiliaciones / Contributions & Affiliations % Seguros / Insurances (5) -2% Servicios y Mantenimiento / Services & Manteinance (24) 0% Divulgacion y Publicidad / Marketing (17) -2% Relaciones publicas / Public Relations % Utiles, Papeleria y Fotocopias / Stationery & Fotocopies % Asambleas y Simposios / Assemblies & Symposiums % Gastos Legales / Legal Expenses % Adecuacion e Instalacion / Reconditioning & Instalation % Gastos de Viaje / Travel Expenses % Depreciaciones / Depreciations % Amortizaciones / Amortizations % Diversos / Sundries % Deterioro de Cartera / Impairment Loss on Trade Receivables % Gastos Actividades No Ordinarios / Other Non Ordinary Expenses % Diferencia en Cambio / Exchange Rate Differences (71) (646) % Método de Participación / Equity Method % Utilidad o pérdida antes de impuestos / Profit before taxes (7.595) -28% Impuesto de Renta y Complementarios y CREE / Income taxes (3.494) -39% Utilidad o pérdida neta del ejercicio / Net profit for the period (4.101) -23% Individual Financial Statements in IFRS

50 50 Individual Balance Sheet 3Q17 (COP$ Millions) ACTIVOS / ASSETS CONCEPTO / CONCEPT sep-17 sep-16 VAR $ % Activo corriente / Current assets Efectivo y Equivalentes al Efectivo / Cash and Cash Equivalents % Otros Activos Financieros Corrientes / Other current financial assets (6.427) -34% Transacciones entre partes relacionadas / Related Parties % Depósitos recibidos en Garantía / Deposits Received for guarantees % Deudores Comerciales y otras Cuentas por Cobrar / Trade Debtors and Other Accounts Receivable (1.353) -21% Activos por Impuestos Corrientes / Current Tax Assets (5.107) -100% Total Activo Corriente / Total Current Assets (7.483) Activo no Corriente / Non-Current Assets Otros Activos Financieros no Corrientes / Other Non-current Financial Assets % Otros Activos no Financieros no Corrientes / Other Non-Current Non-Financial Assets (1.483) -60% Inversiones bajo Método de Participación / Investments Held under Equity Method % Inversiones en Subsidiarias y Negocios Conjuntos / Investment in Subsidiaries and Associate Businesses % Activos intangibles distintos del Goodwill / Other Intangible Assets % Propiedades y Equipo / Property and Equipment % Activos por Impuestos Diferidos / Deferred tax assets - Total Activo no Corriente / Total Non-Current Assets % (177) -100% % TOTAL ACTIVOS / TOTAL ASSETS % Individual Financial Statements in IFRS