Bolsa de Valores de Colombia. Corporate Presentation 2017

Transcription

1 1 Bolsa de Valores de Colombia Corporate Presentation 2017

2 2 BOLSA DE VALORES DE COLOMBIA - BVC Overview Our Business Lines: Capital Markets & Issuer Services Technology Solutions & Innovation Information Services Post-Trading Services BVC Financial Highlights

3 3 BOLSA DE VALORES DE COLOMBIA - BVC Overview Our Business Lines: Capital Markets & Issuer Services Technology Solutions & Innovation Information Services Post-Trading Services BVC Financial Highlights

4 4 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

5 5 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

6 6 BOLSA DE VALORES DE COLOMBIA - BVC Overview Our Business Lines: Capital Markets & Issuer Services Technology Solutions & Innovation Information Services Post-Trading Services BVC Financial Highlights

7 7 Capital Markets We organize markets to ensure their eligibility We use technology to foster growth, facilitate the execution of trading strategies, and bring access to more participants Volume & Transaction Driven Revenue Business Line Fixed Income Market: Electronic trading and OTC registration services on public & corporate debt, money market, primary market for corporate debt Equity Market: Electronic trading on cash equities, securities lending, repos, ETFs, and foreign securities FX Market: Electronic trading, OTC registration services and hybrid platforms (electronic/voice) on: Spot Dollar, Next Day dollar, Forwards/Swaps and Options, Derivatives Market: Electronic trading and OTC registration services on futures (interest rates, equities, fx) and swaps Revenue Contribution LTM 3Q17 31% Capital Markets Revenue 46,5 48,7 46,6 47,1 52,1 50,9 50,2 Revenue growth CAGR ,1 4,1 26,6 10,3 5,0 22,4 11,9 14,1 5,1 5,8 19,2 15,5 15,8 15,7 15,2 7,2 6,7 7,4 16,8 16,6 15,1 Capital Markets: 3% Derivatives: 50% FX: 15% Equity Market: -11% Fixed income: -1% 12,8 11,0 10,4 11,5 12,4 11,9 12, LTM 2016 LTM 2017 Fixed Income Equity Market FX Derivatives *Figures in COP$ Billions

8 CAGR 12-16: +2.5% Capital Markets We organize markets to ensure their eligibility We use technology to foster growth, facilitate the execution of trading strategies, and bring access to more participants Fixed Income FX (USD Billions) CAGR 12-16: -2.6% * 257 Electronic OTC * CAGR 12-16: +66% Equity Market Derivatives (Volume) 7 CAGR 12-16: % 0,5 1, , * Cash Equity Repos Securities Lending * 96 Fixed Income Market 100% corp debt market share 52% Gov debt market share Derivatives Market Futures: 13% market share OTC: 52% market share 37% traded by 3 rd parties Foster turnover liquidity Our Results Capital Markets Strategy: Equity Market 100% market share 27% volume traded by foreigners FX Market 72% market share 100% share of electronic trading Automate order management + interconnect markets Stimulate multi-market strategies Improve markets structure and quality Reach more investors Standardized OTC Traded Volume in COP$ Trillions. *As of September 2017 Since 2015 Fixed income market includes Set- ICAP Securities Derivatives Includes: Stadardized (futures) and OTC (NDF, Swaps)

9 9 Issuer Services The Colombian Capital Market is a strong financing alternative for companies Recurring Revenue Business Line: Revenue Contribution Securities listing: Fixed income: Listing and annual maintenance fees vary for type of security and sector. Financial institutions (fixed fee) and real sector (% of the amount issued or in stock) Equities: Listing and annual maintenance fees are priced according to shareholder s equity as of Dec 31 of each year Issuances and public offerings: IPOs, Follow-Ons, Fixed income issuances, Tender Offers Training & Events The BVC promotes among listed companies the adoption of best practices on disclosure and investor relations (IR). IR Recognition is the guidance for the Colombian securities market adopted voluntarily by the BVC issuers. LTM 3Q17 11% Issuer Services Revenue 15,0 14,9 17,3 15,2 20,4 18,9 16,9 7,9 6,4 4,8 3,8 3,5 2,4 3,4 11,6 12,5 12,5 11,8 12,5 12,6 13,1 Revenues growth 8% CAGR LTM 2016 LTM 2017 Annual Listing Fees Listing Services *Figures in COP$ Billions

10 10 *As of September 2017 Issuer Services The Colombian Capital Market is a strong financing alternative for companies 1,3 4,0 0,2 1,4 Total Amount Issued (COP Trillions) 0,5 6,6 10,2 9,3 10,0 1,1 0,3 5,9 CAGR 12-16: +11,6% 13,1 1,1 0,2 0,6 9,7 8,5 Issuances COP$84 trillion * Our Results IR Recognition issuers 26 reporting sustainability on GRI4 Innovators Development of electronic systems that promote and guarantee transparency (book administration, Dutch auctions and other mechanisms for asset allocation) * Fixed Income Equities Public Offerings # of Listed Issuers Issuer Services Strategy: Specific financing needs / liquidity on equities and fixed income Marketplace lending: mini bonds for SMEs * Bonds Equity

11 11 BOLSA DE VALORES DE COLOMBIA - BVC Overview Our Business Lines: Capital Markets & Issuer Services Technology Solutions & Innovation Information Services Post-Trading Services BVC Financial Highlights

12 Where are we going? What are we doing? 12 Technology Solutions & Innovation We enable financial industry capabilities We deliver IT innovation and digital solutions for financial and capital markets Enable market platforms: Trading and post-trading Enable electronic market access: Interconnected Markets Explore and appropriate new technologies: Digital channels, cloud services, algo-trading and analytics Expand the IT solutions offering for the financial market Revenue Contribution 41% LTM 3Q17 Growth Drivers Turnover - Interconnected Markets - Efficiency & Market Integrity - Massification Shared Services: Modernization and IT consolidation for Infrastructure providers Broker-as-a-Service: Back Office, Master Trader and digital services Fintech: Investment and financing technologies, Blockchain Integrated Services BVC + Sophos: IT solutions for Capital Markets In 2017 Migrating to: Nasdaq X-stream INET New Features: Single trading platform for equities, derivatives, fixed income and MILA Pre-trade risk management Market monitoring capabilities Algorithmic and HFT protocols

13 13 *Figures in COP$ Billions *As of LTM 3Q17 Sophos Leverages our IT Strategy A regional player specialized in IT services for banking, capital markets and digital channels Recurring Revenue Business Line Regional experience and in depth knowledge of our clients business 15 years experience 20 clients in Colombia and 8 clients in Latin America ISO 9001 & CMMI Regulatory and industry expertise Specialized implementation and integration services Core banking solutions Treasury solutions Credit & debit cards processing solutions Digital channels Design, development and testing Partner of the leading worldwide providers Revenue Contribution 41% LTM 3Q17 Sophos Revenue 20,3 21,4 26,6 35,7 62,3 20,3 21,4 1,4 25,2 0,0 1,0 2,9 31, LTM 2016 LTM ,1 4,2 52 Colombia Mexico Chile Panama 52,9 2,3 4,7 43,5 65,7 3,1 1,2 3,7 57,6 Revenue growth 32% CAGR EBITDA growth 44% CAGR EBITDA margin 22% LTM 3Q17 Net margin 11% LTM 3Q17

14 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

15 15 BOLSA DE VALORES DE COLOMBIA - BVC Overview Our Business Lines: Capital Markets & Issuer Services Technology Solutions & Innovation Information Services Post-Trading Services BVC Financial Highlights

16 16 Information Services Information and knowledge at the service of financial and capital markets We use technology, analytics and digital marketing to grow our business and provide broader access Fee-Based & Subscription Revenue Business Line Revenue Contribution Terminals: market screens Knowledge services: Intermediary Access: electronic access service for trading, back office, custodians, and infrastructure providers Market Data: real-time information for vendors, development & licensing of indices, e-bvc (web & app) Main securities pricing vendor in Colombia Products: Valuation of market securities and other non-liquid assets Risk and portfolio management tools Indices Mutual funds data Academic Line: market training, virtual courses, academic program for retail investors, certifications Contests and simulators: universities & schools Digital strategy: websites and social media 14% LTM 3Q17 Information Services Revenue 12,5 14,8 16,1 18,9 22,7 1,4 2,2 0,9 4,0 1,1 4,1 4,2 5,7 6,7 1,2 4,9 8,8 1,6 1,6 1,7 1,7 1,7 3,2 2,8 2,6 2,6 2,6 2,5 2,7 22,5 1,4 1,3 23,1 1,3 7,0 6,7 7,3 10,1 10,2 10,2 Revenue growth CAGR Information Services: 16% Market Data: 25% Infovalmer: 33% Infovalmer 41% EBITDA margin LTM 3Q LTM 2016 LTM 2017 Terminals Intermediary Access Market Data Price Vendor (Infovalmer) Education *Figures in COP$ Billions *As of LTM 3Q17

17 17 Information Services Information and knowledge at the service of financial and capital markets We use technology, analytics and digital marketing to grow our business and provide broader access # of Vendors % Electronic orders SAE Our Results CAGR 12-16: +15% 74% 36% 8% 8% 6% 4% 96% Daily Electronic orders through SAE Infovalmer Assets valuated * 92% 92% 94% 96% 64% 26% * SAE Terminals +10 intl. indices Alliance BlackRock Participants educated at the BVC ,1 AUM ETF icolcap (COP Trillions) 3,0 2,5 1,5 2,7 3, * # of Participants in BVC courses (thousands) CAGR 12-16: +49% 17,7 16,4 54,5 67,9 86,6 73, * 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 *As of September 2017

18 18 BOLSA DE VALORES DE COLOMBIA - BVC Overview Our Business Lines: Capital Markets & Issuer Services Technology Solutions & Innovation Information Services Post-Trading Services BVC Financial Highlights

19 19 Where are we going? What are we doing? Post-Trading Services We are consolidating the Colombian capital markets value chain Growth Drivers Corporate integration with Deceval: Integration of the Colombian capital market infrastructure starting with the private Central Securities Depository Interconnect C&S participants: All market participants connected to BVC Promote infrastructure development: Developed the existing CCPs: CRCC and CCDC Organize new C&S framework: CCP for equities, multilateral settlement for fixed income Reliable and efficient C&S processes: Process optimization, custodians management, settlement by cycles, SAE Turnover - Interconnected Markets - Efficiency & Market Integrity - Massification Vertical integration: Optimize value chain processes, maximize efficiencies and expand product offering Integration with Clearing Houses Automate C&S processes: C&S complete cycle - Straight-Through- Processing, BaaS Facilitate C&S Cross-border mechanisms Our Results Dividends paid in 2017 from Long-term Investments & Subsidiaries increased by +65% YoY (COP$ 18billion) +1,5 million Transactions cleared and settled per year Largest individual shareholder of the entities in the capital markets value chain Shareholding: Deceval: 23% CRCC: 32% CCDC: 31%

20 20 Amount C&S Contracts C&S CRCC is the central counterparty for the Colombian capital market; provides C&S services for derivatives and money market $34 Trillion 1.8 Million Post-Trading Services We are consolidating the Colombian capital markets value chain CRCC & CCDC: Clearing Houses have grown steadily expanding its products offering CRCC Revenues CCDC Revenues CAGR 12-16: +20% CAGR 12-16: +13% LTM 2016 LTM % 3% Revenue Distribution 97% 85% C&S Services Others Amount C&S Transactions C&S CCDC provides clearing services for the foreign exchange market in Colombia US$270 Billion 408K 54% 43% 4 30% 29% CRCC EBITDA 29% 27% 38% 26% 5 35% LTM % CCDC EBITDA % 6 31% 32% 3 3 LTM % CRCC RoA CRCC RoE CCDC RoE CCDC RoA 35% 31% 29% 33% 32% 26% 27% 29% 27% 25% 26% 23% 23% 26% 10% 9% 11% 6% 6% 3% 1% 4% 3% 2% 2% 4% 1% LTM LTM Source: CRCC & CCDC C&S figures as LTM 3Q17 Financial Figures as of LTM 3Q17 COP$ Billions

21 21 Post-Trading Services We are consolidating the Colombian capital markets value chain Deceval: the private CSD presents stable and resilient financials Securities Custody Dematerialized Issuances Securities Administration 1.4 Million Transactions 348 Issuers 198 custodians Main Services: $483 Trillion $468 Trillion $130 Trillion $702 Trillion Total Revenues LTM % EBITDA 59% 58% % 55% EBITDA Margin 79 LTM % 53% % 30% 44% 4% Total Revenues COP$ 76 Billion 6% 38% 37% 28% 28% Revenue Distribution 13% 33% RoA 24% 23% RoE Custody Securities Administration Transactions Deposit of Issuances Others 30% 30% 30% 33% 21% 22% LTM 2016 LTM LTM 2016 LTM 2017 Source: DECEVAL service figures as of LTM 3Q17 Financial figures as of LTM 3Q17 COP$ Billions

22 22 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

23 23 Post-Trading Services Strategic Rationale: Consolidation of the Colombian capital market s value chain The Integration BVC Deceval will generate efficiencies in the value chain of the Colombian capital market to reduce costs and enhance service offering Transaction Objectives: Strengthen the position, soundness and competitiveness of DECEVAL and BVC at the regional and international level. Improve the cost-benefit ratio for market participants Optimize value chain processes / maximize efficiencies Expand product offering Generate synergies Create value for shareholders and other stakeholders Transaction Benefits: 1. Unified strategy for the development of capital markets 3. Better cost-benefits ratio for market participants 2. Organization and modernization of the market infrastructure 4. Competitiveness at the global level

24 24 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*

25 25 Post-Trading Services BVC DECEVAL Transaction Structure: Contribution of Shares Current Structure Step 1: Deceval shareholders contribute their shares to BVC Step 2: BVC issues shares in favor of Deceval shareholders Final Structure Shareholders Shareholders Shareholders Shareholders Shareholders Shareholders Shareholders 77,02% 77,02% 77,02% 100% 22,98% 22,98% 22,98% # of shares BVC DECEVAL Deceval # of shares BVC Other Shareholders Total Ratio x % / 40 % = New Shares BVC # of shares % Current Shares % New shares % Total % Considerations: BVC and Deceval are market infrastructure providers and are therefore subject to inspection and surveillance from the Financial Superintendence of Colombia. Deceval must have exclusive corporate purpose in the terms of the Law 27 of No one may be the ultimate beneficial owner of more than 10% of the BVC s outstanding shares

26 26 BOLSA DE VALORES DE COLOMBIA - BVC Overview Our Business Lines: Capital Markets & Issuer Services Technology Solutions & Innovation Information Services Post-Trading Services BVC Financial Highlights

27 27 *Figures in COP$ Billions *As of LTM 3Q17 BVC Financial Highlights Diversified Revenues Distribution Strategy 69% from recurrent revenues Total Revenues CAGR 08-16: +13% % 3% Total 13% Revenue COP$61 Billion 14% LTM 2016 LTM % 20% 12% 8% Total Revenue COP$82 Billion 15% 45% 41% 3% Total Revenue COP$ 160 Billion 14% 31% 11% RECURRENT REVENUES 69% Issuer Services Information Services Technology Solutions and Innovation REVENUES TIED TO MARKET ACTIVITY 31% Capital Markets: Fixed Income Equities Derivatives FX OTC

28 *Figures in COP$ Billions *As of LTM 3Q17 28 BVC Financial Highlights EBITDA 47% CAGR 08-16: +12% 43% 42% 38% 39% 36% 32% 34% 34% 33% 28% Net Profit CAGR 08-16: +16% 33% 33% 32% 31% 27% 28% 23% 20% 20% 16% 17% LTM 2016 EBITDA EBITDA Margin LTM LTM 2016 Net Profit Net Margin LTM 2017 Balance Sheet RoE - RoA BVC has no financial debt % 11% 20% 16% 24% 25% 20% 20% 27% 22% 23% 18% 25% 20% 24% 24% 22% 21% 16% 17% 16% 15% LTM 2016 Assets Liabilities Shareholder's Equity LTM LTM 2016 RoA RoE LTM 2017

29 29 BVC Financial Highlights Ratios EPS / Dividend Yield ,3 28,5 32,1 CAGR 08-16: +3% 6,3% 24,8 5,7% 5,2% 15,7 4,0 20,5 5,6 17,8 18,7 17,46 16,5 15,6 14,1 13,2 12,3 11,9 11,5 11,5 11,10 10,88 7,8 8,1 7,6 7,22 4,5 5,0 3,8 3,6 3,0 3,69 2,5 2,62 4,0% 0,72 2,8% 2,2% 0,83 0,93 1,52 4,8% 1,42 1,42 4,2% 0,89 0,89 4,15% 0, LTM 2016 P / E EV / EBITDA P / BV LTM Payout ratio % EPS Div. Yield 66% 84% 72% 100% 100% 127% 67% 71% 71% 30,2 21,8 14,8 9,4 3,8 1,7 Benchmark 18,5 19,5 21,7 10,6 13,2 14,1 3,4 2,1 3,9 39,2 18,9 7, CAGR 08-16: +22% Cash Flow P/E EV/EBITDA P/BV LTM 2016 LTM 2017 Benchmark: As of June 2017, Source: Bloomberg Consolidated Figures in $COP Billions

30 30 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

31 31 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

32 32 Appendix

33 33 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

34 34 Dividends From Subsidiaries & Long-term Investments Total Dividends for BVC totaled COP$ million (+65% YoY) Subsidiaries: $10.328m (+67% YoY) Sophos Dividend: $5.456M (+142% YoY) Payment Dates: Mar 31 & Oct 31 Long-term Investments: $8.007m (+63% YoY) Deceval Dividend: $5.547M (+22% YoY) Payment Dates: Apr 28 & Oct 31 Infovalmer Dividend: $1.550M (+53% YoY) Payment Dates: Mar 30 & Jun 30 Set Icap FX Dividend: $3.147M (+13% YoY) Payment Dates: Apr 21 Total Dividends $ million +65%(YoY) CRCC Dividend: $0 continued reducing during 2016 its loses in results from prior periods, pending balance totaled COP$1.471 million CCDC Dividend: $2.460M (+589% YoY) Payment Date: Mar 28 Set Icap Securities Dividend: $175M (+17% YoY) Payment Dates: Apr 21 Derivex Dividend: $0 Negative net profits $-198 for 2016 Total Dividend received from Subsidiaries and Long-term Investments *Figures in COP$ Millions

35 35 BVC Financial Highlights Total Expenses mainly explained by Subsidiaries 57% Expenses Breakdown LTM 3Q17 2% 2% Costs CAGR 08-16: +12% Total Expenses % 8% Total Expenses COP$ 123 Billion 35% Employee Benefit Expenses Depreciation & Amortization Expenses Other Ordinary Expenses Projects % Non-Ordinary Activity Expenses Distribution by Company LTM 3Q17 1% LTM 2016 LTM % 4% BVC 43% Sophos Set Icap FX 44% Set Icap Securities Infovalmer *Figures in COP$ Billions *As of LTM 3Q17

36 Business Model: BVC is a multi-asset Exchange with presence along the value chain of the Colombian capital market MARKET EQUITIES FIXED DERIVATIVES CURRENCIES INCOME TRADING OTC / SEN OTC OTC CLEARING SEN SETTLEMENT BR d CRCC (1) BR BR CUSTODY BR: Colombian Central Bank 36

37 Colombian Capital Market MARKET Colombia USA TRADING Multiple Trading Venues CLEARING SETTLEMENT CSD REGULATION SEC BVC has shareholdings along the capital market value chain. Clearing, settlement and central depository at the final beneficial owner level increase confidence in the Colombian market. Regulation prohibits internalization of orders, dark pools d and OTC equities trading. Naked short selling and naked access are not allowed for over night transactions. Omnibus accounts are not permitted except for MILA. Settlement & Clearing is bilateral between the Exchange and the CSD in Equities and Fixed income market Clearing, settlement and custody occur at the brokerage houses. Each prime broker has its own structure to control its customers portfolios and settle d positions (impact on the prime broker s costs). BR: Colombian Central Bank

38 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct Colombian Macroeconomic Ratios GDP Growth Inflation (%) 6,6% 7,7% 6,8% 3,5% 1,7% 4,0% 4,0% 4,3% 4,6% 3,1% 2,0% 1,3% 2,0% 3,2% 3,7% 2,4% 1,9% 3,7% 5,8% 3,5% * * 9,50% Central Bank Intervention Rate (%) 7,50% 5,75% 4,75% 4,50% 4,25% 3,00% 3,25% 3,50% 5,25% FX Rate Var YoY YTD MoM 1,5% 1,3% 2,5% 3.011,44 Oct * Central Bank Intervention Rate, Inflation and FX rate as of October 2017 GDP Growth: as of 2Q17 Source: Colombian Central Bank and DANE

39 39 Colombian Macroeconomic Ratios CAGR 05-16: 18% AUM Pension Funds (COP Trillions) * COLOMBIA RATING EVOLUTION MOODY'S S & P FITCH RATING DATE RATING DATE RATING DATE Ba1 (Positive) 9-Sep-10 BB+ (Positive) 7-Jul-10 BB+ (Stable) 21-Jun-07 Baa3 (Stable) 31-May-11 BBB- (Stable) 16-Mar-11 BB+ (Positive) 14-Oct-10 Baa3 (Positive) 8-Jul-13 BBB- (Positive) 15-Aug-12 BBB- (Stable) 6-Mar-13 Baa2 (Stable) 28-jul-14 BBB (Stable) 24-Apr-13 BBB (Stable) 10-Dec-13 Baa2 (Stable) 26-may-16 BBB (Negative) 16-feb-16 BBB (Stable) Jan-Aug-Nov 14 BBB (Negative) 18-Jan-17 BBB (Stable) May-Dec BBB (Negative) BBB (Stable) Jul Mar-17 *As of August 2017 * Foreign Investment as of September 2017 *Source: Colombian Financial Supervisor and Colombian Central Bank 2,3 9,5 Foreign Fixed Income 5% Cash and Derivatives 14% Foreign Equity Market 22% AUM Distribution (%) Local Equity Market 20% Local Fixed Income 39% Foreign Investment (USD Billions) 2,6 3,3 4,7 12,4 15,0 16,7 16,8 15,1 4,4 11,4 Multi-fund Scheme since More than 14 Million affiliates. CAGR 10-16: -1% CAGR 10-16: +16% 5,9 2,9 8,8 7, * FDI Portfolio

40 *Source: WFE, World Bank, BVC, Colombian Central Bank, DANE 40 Colombian Macroeconomic Ratios 4 th Largest economy in Latin America with 48 million people and 7 cities with population over 1 million Colombia is the 5 th most business-friendly country according to the Ease of Doing Business Ranking GDP CAGR 09-16: 3% ONE DIGIT INFLATION since 1999 Inflation Rate as of October 2017 is : 3,5%. Unemployment Rate as of September 2017 is : 9,2% Investment Grade Since 2011 Sustained growth of the Colombian Pension Funds CAGR 08-16: 18% 6 th Largest Fixed Income Market in the World ADTV in BVC as of 2016: USD1.4 billion Market Capitalization CAGR 08-16: 6% Equities Market CAGR 08-16: Derivatives Market CAGR 08-16: 3 rd Derivatives market in Latin America FX Market CAGR 08-16: 2% Portfolio Foreign Investment CAGR 10-16: 16% 1% 20%

41 41 Disclaimer: The views expressed in this presentation not necessarily reflect the institutional view of the Colombian Stock Exchange (BVC for its acronym in Spanish). The information contained herein is only accurate as of the date thereof, may be updated, supplemented, amended or otherwise altered by subsequent presentations, reports and/or any communication made by the BVC. Since the information is subject to change the BVC will not necessarily inform you of such changes. This presentation may contain forward-looking statements that involve a number of risks and uncertainties or other factors beyond BVC s control that could cause actual results materially differ from those projected and do not guarantee any future BVC performance. These factors include, but are not limited to i. economic, political and market conditions and fluctuations; ii. changes in domestic and foreign regulation; and iii. adoption of government policies related to the securities markets. The financial statements contained in this document are for the period herein described and are provided for informational purposes. The BVC is not liable for the use that third parties give to the information contained herein. The most recent financial statements approved by the Board of the BVC are those published for the [I] quarter of BVC cautions the investor that the information set forth in this communication cannot be consider as sufficient in order to make investment decisions.