Schedule. I. BUSINESS ENVIRONMENT Gilson Finkelsztain - CEO

Transcription

1 APIMEC

2 Schedule I. BUSINESS ENVIRONMENT Gilson Finkelsztain - CEO III. UTVM Carlos Ratto - UTVM Commercial and Products Executive Director and Marketing and Communications Executive Director. II. UFIN Roberto Dagnoni UFIN Vice President Executive Officer and New Business Executive Director IV. FINANCIAL RESULTS Willy Jordan CFO and Investor Relations Officer 2

3 I. BUSINESS ENVIRONMENT II. UTVM III. UFIN IV. FINANCIAL RESULTS 3

4 4,00 0 3,50 0 3,00 0 2,50 0 2,00 0 1,50 0 1, % 50. 0% 40. 0% 30. 0% 20. 0% 10. 0% 0.0 % Credit Market is Still Expanding, but at a Lower Pace Credit Expansion in Brazil Credit Growth CAGR 08-9M15: 14.4% 53.7% 52.6% 54.7% 55.0% 30.7% 49.1% 40.5% 35.1% 45.4% 2,368 2,715 3,018 3, % 18.8% 2, % 16.4% 14.7% 1, % 1,234 1, % M M15 Volume (R$ billion) % GDP Source: Brazilian Central Bank 4

5 Challenging Scenario in 2015 for Vehicle Financing Vehicles Financing (milhares) % Penetration: Vehicles Financing/ Vehicle Sales ,461 3,541 3,489 3, ,920 3, ,359 3,241 3,233 3,937 3,870 3,590 3,517 3, % ,355 2,240 2,296 1, % 67.5% 72.3% 55.6% 48.2% 47.6% 47.2% 67.3% 44.1% 38.1% 35.5% 32.7% 63.6% 64.2% 61.4% 59.1% 39.7% 37.6% 34.5% 31.0% 28.3% 25.9% 24.2% 22.4% M M14 9M15 New Vehicles Used Vehicles Source: Fenabrave % New vehicles financed / New vehicles sold % Used vehicles financed / Used vehicles sold % Total vehicles financed / Total vehicles sold Source: SNG / Fenabrave Individuals Delinquency Ratio Vehicle Financing 7,1% 6,7% 6,3% 5,7% 5,3% 3.7% 5,2% 5.0% Individuals Delinquency 4,4% Individuals Delinquency (Mar/11 - Sep/15) 3.9% 4.0% Mar-11 Sep-11 Mar-12 Sep-12 Mar-13 Sep-13 Mar-14 Sep-14 Mar-15 Sep-15 Source: Brazilian Central Bank 5

6 Expansion of the Main Fixed Income and OTC Derivatives Assets Stocks % 7% Fixed Income Volume stock* +9% +9% +13% % 8% (R$ billion) +5% +10% % 14% 7% 11% 8% 15% 17% 18% 21% 23% 13% 16% 19% 23% 16% 30% 16% 15% % 15% 13% 11% 17% 12% 12% 35% 34% 33% 33% 29% 29% 8% 427 OTC Derivatives Volume Stock* +45% +37% 8% 584 6% 25% (R$ billion) +89% +8% +22% % 13% 5% 22% 29% 21% % 25% 22% 70% 69% 74% 70% 58% 44% M15 Investment fund-quota Debentures CDB DI Others Letra Financeira M15 Swap Currency forward contracts Other derivatives / Structured notes * total stock registered at Cetip. Position in custody on the last business day of each period. Source: Cetip 6

7 Organizational context in 2013/2014 Areas and separate units Different pay structures Development actions focused on the individual Develop the company for: Unique values Single direction Recognition Widespread Corporate Culture 7

8 We work in Alpha Project Remuneration Performance Feed 80% Barueri / 20% Faria Lima Fixed Variable Matching Cross-goals Assessment Committees 93% of trained leaders peer to peer Formation * Values # Safety # Customer's satisfaction # People development # Be ethical # Trust # Excellence # Team work # Innovation # Long-term prospects *This team has value Focus 2015/2016 8

9 Alpha Project Change of head office to Barueri 4 Sites Mar/15 Santana (60%) Wave 1 Jun/15 Faria Lima (15%) Wave 2 Sep/15 Santana (40%) Wave 3 Dec/15 Faria Lima (25%) Wave 4 2º-3º Q/16 RJ (100%) Wave 5 4º Q/16 Faria Lima (25%) Operating synergies + Integration and culture gains + Cost saving Wave 6 2 Sites 9

10 Client Centricity Project Obtained and Expected Results 1 Segment and prioritize customer for representation in revenue Overall Satisfaction Establish an superior relationship model, based on prioritization nov/13 nov/14 nov/15* Service and Relationship Best solution and service available 8.76 nov/13 nov/14 nov/15* Products and services 4 Communication to capture feedbacks and deploy them (loops) nov/13 nov/14 nov/15* * Expected Totally dissatisfied 1 and 5 Totally satisfied 9 and 10 10

11 What lies ahead in 2016 UTVM COE Public offering UFIN Real Estate Platform Depository project s conclusion Electronic Formalization CCP - Central Counterpart Cetip Trader + ICE Link Electronic Report OTC Derivatives Markets Securities market 11

12 I. BUSINESS ENVIRONMENT II. UTVM III. UFIN IV. FINANCIAL RESULTS 12

13 CDB Registration and Identification Before Circular letter 3709 Registration: R$ 50 thousand Final Beneficiary Identification: R$ 1 million After Circular Letter 3709 Registration and Final Beneficiary Identification: R$ 5 thousand Secondary market trades: R$ 0 Hardware and software investments Operating Expenses - monitoring Transparency Price changed according to new volume New pricing model for the bank deposit certificate ( CDB ) ORIGINAL TABLE Registration fee (variable depending on group and term of issue) PROPOSAL TABLE Registration fee (single, simplified and independent of CDB term of issue) Custody fee (decreasing by volume and charged for CDB Custody and not for the term of issue) RESULTS IMPACT Registration fee revenue Creating a separate custody fee 13

14 Increase the Transaction Volume Average Daily Number of Transactions (Thousand) Average Price per Transaction (R$ per Transaction) 148% 1,493 1,399 1,293 1,276 1,236 1, % 1, Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 ORIGINAL TABLE PROPOSAL TABLE Transaction fee First timetable Average R$ 0,745 Transaction fee First timetable R$ 0,37 sharing the gain of scale ~50% 14

15 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Structured notes certificate COE Volume in Custody* (R$ billions) Public offer (CVM 569 regulation of 10/14/2015) 100% Market Share What we expect: Volume issued Issuers Individuals investors Foundations * Position in custody on the last business day of each period. 15

16 Depositary Project Attendance to CVM Instructions 541, 542 and 543 What the new rules means: Regulates the Depositary, Custodian and Bookkeeping activities and define responsibilities for each of them in relation to SECURITIES What changes to Cetip: Cetip is a depositary institution Transfer of fiduciary ownership of the asset - Immobilization Settlement by Cetip including events Conciliation Implementation status and next steps: Jan 16 last schedule delivery with CVM. Próximas fases: Business Opportunity - Optional deposit - financial assets Awaiting Brazilian Central Bank regulation Extract Collateral Business Opportunity Business Opportunity 16

17 Depositary Project (Cont.) Portal with access to investment products information * Stock information and marketable security transactions, directly accessed by the investor Communication channel between the Cetip and Fixed Income Investors without interfering in the relationship Bank x Client Adds value to the banks, distributors and other Cetip s customers. It will includes Cetip Certifica CONNECT investors with Cetip to help our customers make more deals * my investments 17

18 Derivatives Volume stock and COE * (R$ billion) Movement NDF (USD) * (billion) 152 2, ,034 1,117 1,307 1, mar/13 jun/15 sep/15 Swap Forward currency Options and COE Termo Mercadoria 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 Swap * total stock registered at Cetip. Position in custody on the last business day of each period. 18

19 CCP - Central Counterpart Project Expansion of Service Offerings for OTC derivatives markets OTC derivatives markets One-stop-shop Types of negotiation WITH Counterparty Risk WITH Counterparty Risk Mitigated by Guarantees WITHOUT Counterparty Risk Solution Cetip OTC Collateral Management? Central Counterpart CCP 19

20 Trading and Post-Trading Platforms MARKET EVOLUTION Users +230 Institutions Banks, Brokers, Foundations, Assets, and Insurers +350 Billions of Reais already negotiated more than 70 thousand business (since March 2013) 20

21 Cetip Trader Traded volumes Market Share Treasury Bonds 14.00% 13.35% 12.00% 10.00% 9.01% 9.34% 10.94% 8.00% 6.00% 4.00% 3.25% 3.50% 5.84% 3.53% 4.34% 4.51% 5.03% 4.73% 7.82% 5.63% 7.16% 7.83% 6.65% 7.89% 2.00% 0.00% 0.94% 1.17% 2.43% 1.91% 3.06% 3.50% 2.62% 3.14% Total Eletronic * * Until 11/19 21

22 I. BUSINESS ENVIRONMENT II. UTVM III. UFIN IV. FINANCIAL RESULTS 22

23 Contracts System Market Share (9M/15) 71.0% RR AP AC AM RO MT PA TO MA PI BA CE RN PE PB AL SE DF GO MS PR SP MG RJ ES SC RS 23

24 Changes to the Registration of Vehicles Financing Contracts Model in SP Registration of Vehicles Financing Contracts São Paulo Model Before Since April 15 Cetip income statement impact Total Fee for the registration of the financing contract for the Total Fee for the registration of the financing contract for the Cetip started to invoice the full amount of the registration of vehicles financing contracts fee, which caused an increase in the Company s revenue for this service The public price charged by Detran São Cetip Fenaseg Cetip Paulo and Fenaseg s revenues in the share are now accounted for as operational expenses for Cetip Pressure on EBITDA margin given P&L s Detran Detran Fenaseg leverage and loss of nominal margin per contract 24

25 Real Estate Platform Size and potential of the Brazilian Real Estate Market Number of financed units (Excl. CMV ) (Quantity thousand) * Balance of loans portfolio Mortgages (R$ billion) 9.7% 9.0% 7.6% 557, , % 391, % 4.0% 298, % 221, % 153, % 99,374 68,832 48, * SFH FGTS SFI Balance of loans portfolio Mortgages % GDP Source: ABECIP and FGTS Fonte: Brazilian central bank * Until September

26 HUB DE INFORMAÇÕES MERCADO IMOBILIÁRIO Real Estate Platform Services Players Involved Products & Partnerships Regulators and Associations Financial Market Real Estate Appraisers Appraisers Management Real Estate Platform - Collateral Management Arisp/ Irib Real Estate Platform - Collateral Registration Registrars of Property Central Bank Platform Financial Institution Investors Real Estate Securitization Secondary Market Índice 26

27 ACTUAL PROCESS Electronic Formalization Project Multiplatform capture Extraction and electronic validation Alienation, contract registration and vehicle report Custody and post-sales Amendments Smartphone Tablet Data extraction Contract registration Charging Call Center Upload Scanner Dossier Lien Bank system Custody Digital Signature Collateral Vehicle report Collection Physical Custody Electronic Formalization: The platform processes the financing transactions electronically and automatically Recognition and electronic data extraction based on images Validation of the customer s documentation and collateral based on the proposed financing contract and public and private data bases Agility, standardization and security to the operations 27

28 Real Estate Platform Project Electronic Report 1 Financed vehicle purchase Upload The Report attests to the situation of the vehicle at the time of your request. Consumer Electronic Formalization Platform 5 Report delivery Report 4 Dealer Report issued Tablet Smartphone 2 Data extraction It provides standardization and security for the financing market, besides transparency for the consumer when buying the vehicle. It is the first product of Cetip for use by the car dealers and the first with mobile application functionality. Official databases Internal databases 3a Query databases 3b electronic verification Checking of Guarantees. Other databases external 28

29 I. BUSINESS ENVIRONMENT II. UTVM III. UFIN IV. FINANCIAL RESULTS 29

30 Diversified Revenue Profile Revenue diversification by business unit and types of revenue 67.2% 9M15 Gross Revenue: 32.8% R$1,041.1 million Securities Unit Financing Unit: Transactions 15.8% Others 10.2% Registration 13.1% Market Data and Development of Solutions 16.8% Others 1.0 % Monthly Utilization 20.3% Custody 40.6% Revenues that depend on Stock 51.5% Types of Revenue: Others 48.5% Contracts System (Sircof) 44.5% SNG 37.8% Short term economical instability has little impact on revenues that depend on stock Business Units with No Correlated Risks 30

31 Financial Highlights 9M15 x 9M14 Gross Revenue: R$ 1,041.1 million 16.4% Adjusted EBITDA: R$ million 10.5 % Securities Unit: R$ million 21.0% Financing Unit: 7.9% R$ million influenced by changes in the registration of the vehicles financing contracts business model in the São Paulo state Adjusted EBITDA Margin: 67.7 % Adjusted Net Income (cash earnings): R$ million 12.5 % Adjusted Net Margin: 53.7% p.p p.p. Adjusted Basic EPS 1 : R$ (R$ Diluted) 12.3% Net Revenue: R$ million 16.3 % Cash Flow from Operations 2 : R$ million 25.0% 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. 31

32 Gross Revenue Performance by Business Unit CAGR 9M11-9M15: 13.6% , M11 9M12 9M13 9M14 9M15 (R$ million) Securities Unit Financing Unit Market data and Development of Solutions 5.5% Contracts System (Sircof) 14.6% SNG 12.4% Other revenues (Securities Unit) 6.8% 9M15 UTVM: 67,2% / UFIN: 32,8% Transactions 10.6% Other revenues (Financing Unit) Composição da Receita Bruta da Cetip 9M14 UTVM: 64,6% / UFIN: 35,4% 0.3% 0.3% Registration Registration Solutions 9.8% 8.8% 5.3% Custody 27.3% Monthly Utilization 13.6% Contracts System (Sircof) 14.2% SNG 15.6% Other revenues (Securities Unit) 7.0% Market data and Development of Transactions 9.7% Other revenues (Financing Unit) Custody 23.2% Monthly Utilization 14.9% 32

33 Financial Highlights Net Revenue CAGR 9M11-9M15: 12.0% % 27.0% 27.3% Adjusted Operating Expenses 1 % of Net Revenue CAGR 9M11-9M15: 18.3% % % M11 9M12 9M13 9M14 9M15 (R$ million) Adjusted EBITDA & Margin (%) 9M11 9M12 9M13 9M14 9M15 (R$ million) Adjusted Net Income (Cash Earnings) & Margin (%) 74.0% 73.0% 72.6% 52.4% 71.2% 48.4% 67.7% CAGR 9M11-9M15: 9.5% CAGR 9M11-9M15: 15.0% % 55.5% % M11 9M12 9M13 9M14 9M15 (R$ million) (R$ milhões) 9M11 9M12 9M13 9M14 9M15 (R$ million) 1 Excludes expenses with share based incentive and depreciation and amortization. 33

34 P&L Impact of the Contracts System Change in SP Impact of São Paulo's New Contracts System Model (R$ million, except where noted) 3Q15 (-) Adjustments to New Costs linked to SP's Contracts System 3Q15 Adjusted 2Q15 2Q15 Adjusted Delta 3Q15/ Delta 3Q15 Adj./ 3Q14 2Q15 3Q14 2Q15 Adj. 3Q14 Gross Revenue % 18.9% 6.7% 11.7% Gross Revenue - Securities Unit % 23.8% 9.1% 23.8% Gross Revenue - Financing Unit % 10.1% 1.2% -10.3% Net Revenue % 20.4% 6.5% 11.6% (-) Operational Expenses (134.8) (112.1) (122.3) (107.3) (97.7) 10.2% 38.0% 4.4% 14.7% Outsourced Services (46.0) (22.7) (23.3) (39.4) (24.5) (19.7) 16.6% 133.2% -4.9% 17.9% Other Operational Expenses (88.8) (88.8) (82.9) (82.9) (78.0) 7.2% 13.9% 7.2% 13.9% (+) D&A and share-based remuneration Adjusted EBITDA (1) % 9.2% 7.0% 9.2% Adjusted EBITDA Margin 65.4% 70.5% 66.6% 70.2% 72.1% -117 bps -671 bps 29 bps -157 bps Impact on Adjusted EBITDA Margin -514 bps (1) Excludes D&A and share-based remuneration expenses 34

35 Strong Cash Generation Cash Flow From Operations ¹ CAPEX CAGR 9M11-9M15: 15.7% % 4.7% % % % M11 9M12 9M13 9M14 9M15 9M11 9M12 9M13 9M14 9M15 (R$ million) (R$ million) CAPEX CAPEX / Net Revenue 1,032.3 Net Debt & Net Debt / Adjusted EBITDA LTM M11 9M12 9M13 9M14 9M15 (R$ million) 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 35

36 Returning capital to shareholders Shareholders Remuneration 122% 75% % 29% 46% M11 9M12 9M13 9M14 9M15 Dividends and ISE Buyback % of net income (R$ million) 36

37 Investor Relations Contacts Willy Jordan Marcela Souza Filipe Scalco 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. 37