bvmf presentation - december 2008

7/30/2019 BVMF Presentation - December 2008

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BM& F BOVESPA PRESEN TATI OND ec 2 0 0 8


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Fo r w a r d Lo o k i n g St a t e m en t s

T h i s p r e s en t a t i o n m a y c o n t a i n c er t a i n s t a t e m e n t s t h a t e x p r e ss t h e m a n a g e m e n t s e x p e ct a t i o n s , b e l ie f sa n d a s su m p t i o n s a b o u t f u t u r e e v e n t s o r r e su l t s . Su c h s t a t e m e n t s a r e n o t h i s t o r i c a l f ac t , b e i n g b a se d o n

c u r r e n t l y a v a i l ab l e co m p e t i t i v e , f i n a n c ia l a n d e co n o m i c d at a , a n d o n c u r r e n t p r o j e c t i o n s a b o u t t h eindu s t r i e s BM&F Bovespa S.A . w ork s in .Th e v er b s an t ici pat e , b el iev e, e st i m at e, ex p ect , f or ecast , p lan , p r ed ict , p r oj ect , t ar g et a n d o t h e r s i m i l a r v e r b s ar e i n t e n d e d t o i d e n t i f y t h e s e f o r w a r d - l o o k i n g s t a t e m e n t s , w h i c h i n v o l v e r i s k sa n d u n c e r t a i n t i e s t h a t c o u l d c au s e ac t u a l r e s u l t s t o d i f f e r m a t e r i a l l y f r o m t h o s e p r o j e c t e d i n t h i sp r e s en t a t i o n a n d d o n o t g u a r a n t e e a n y f u t u r e o f B M& F B o v es p a S. A. p e r f o r m a n c e.T h e f a c t o r s t h a t m i g h t a f f e c t p e r f o r m a n c e i n c lu d e , b u t a r e n o t l i m i t e d t o : ( i ) m a r k e t a c ce p t a n c e o f B M & FB o v es p a SA s er v i c es ; ( i i ) v o l a t i l i t y r e l a t e d t o ( a ) t h e B r a zi l i an e c o n o m y a n d s e cu r i t i e s m a r k e t s a n d ( b )t h e h i g h l y - c o m p e t i t i v e i n d u s t r i e s t h a t B M & F Bo v e sp a S. A. o p er a t e s i n ; ( i i i ) c h a n g es i n ( a ) d o m e st i c a n df o r e i g n l e g i sl a t i o n a n d t a x a t i o n a n d ( b ) g o v e r n m e n t p o l i c i es r e l at e d t o t h e f i n a n c ia l a n d s ec u r i t i e sm a r k e t s ; ( i v ) i n cr e as in g c o m p e t i t i o n f r o m n e w e n t r a n t s t o t h e Br a zi l ia n m a r k e t s; ( v ) a b il i t y t o k e ep u pw i t h r a p i d ch a n g e s i n t e c h n o l o g i ca l en v i r o n m e n t , i n c lu d i n g t h e i m p l e m e n t a t i o n o f e n h a n c e d f u n c t i o n a l it yd e m a n d e d b y B M & F B o v es p a SA c u st o m e r s ; ( v i ) a b i l it y t o m a i n t a i n a n o n g o i n g p r o c es s f o r i n t r o d u c i n gc o m p e t i t i v e n e w p r o d u c t s a n d s e r v i ce s, w h i l e m a i n t a i n i n g t h e c om p e t i t i v e n e s s o f e x i s t i n g o n e s; ( v i i )a b i l it y t o a t t r a c t n e w c u st o m e r s in d o m e st i c a n d f o r e ig n j u r i s d i ct i o n s ; ( v i i i ) a b i l i t y t o ex p a n d t h e o f f e r o fBM&F Bovespa S.A . p rod uc t s i n fo r e ign ju r i sd i c t ion s .A l l f o r w a r d - l o o k i n g s t a t e m e n t s i n t h i s p r e se n t a t i o n a r e b a se d o n in f o r m a t i o n a n d d a t a a v ai l a b le as o f t h ed a t e t h e y w e r e m a d e , an d B M & F Bo v e sp a SA u n d e r t a k e s n o o b l i g a t i o n t o u p d a t e t h e m i n l i g h t o f n e wi n f o r m a t i o n o r f u t u r e d e v e lo p m e n t .T h i s p r e s en t a t i o n d o e s n o t c o n st i t u t e a n o f f e r t o s el l o r t h e s ol i ci t a t i o n o f a n o f f e r t o b u y a n y s e cu r i t i e s,n o r s h a l l t h e r e b e a n y sa l e o f s ec u r i t i e s w h e r e su c h o f f e r o r s a l e w o u l d b e u n l a w f u l p r i o r t o r e g i st r a t i o no r q u a l if i c at i o n u n d e r t h e s ec u r i t i e s la w . N o o f f e r i n g s h a l l b e m a d e e x ce p t b y m e a n s o f a p r o s p e ct u sm e et i n g t h e r e q u i r e m e n t s o f t h e B r a z i l ia n Se cu r i t i e s Co m m i s si o n CV M I n s t r u c t i o n 4 0 0 o f 2 0 0 3 , a s

a m e n d e d .


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FINANCIAL DATA


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Fi n a n ci a l H ig h l i g h t s2 0 0 8 Ad j u st ed a n d 2 0 0 7 Pr o Fo r m a

Net Revenu es ( R$ Mi l l ions)

3 6 0 . 8

4 3 4 . 24 0 4 . 7

3 Q0 7 2 Q0 8 3 Q0 8

9 6 2 . 4

1 , 2 3 1 . 6

9 M0 7 9 M0 8

1 2 . 2 %

2 8 . 0 %

EBI TDA Marg in ( % )

8 . 5 b p

6 2 . 0 %

6 8 . 0 % 6 8 . 1 %

3 Q0 7 2 Q0 8 3 Q0 8

5 9 . 6 %

9 M0 7 9 M0 8

6 . 1 b p

A d j u st e d N et I n co m e ( R$ Mi l l ions )Ex c l u d e s g o o d w i l l a m o r t i z a t i o n a n d n o n - r e c u r r i n g e x p e n s e s

4 4 . 8 %

5 4 . 6 %

2 0 4 . 3

2 1 8 . 7

3 1 5 . 9

3 Q0 7 2 Q0 8 3 Q0 8

5 2 8 . 3

7 6 4 . 9

9 M0 7 9 M0 8

6 8 . 1 %

N et I n co m e ( R$ Mi l l ions)Exc ludes non- r ecur r ing ex penses

1 9 . 5 %

1 4 %

2 0 4 . 31 6 5 . 2

3 Q0 7 2 Q0 8 3 Q0 8

5 2 8 . 3

6 3 1 . 1

9 M0 7 9 M0 8

2 3 2 . 9


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Re v en u e s Br e ak d o w n

Bovespa Segm en t ( R $ m i l l i on s )

2 3 2 . 5

3 0 9 . 32 6 4 . 6

3 Q0 7 2 Q0 8 3 Q0 8

5 7 7 . 4

8 4 4 . 4

9 M0 7 9 M0 8

1 3 . 8 %

6 . 2 %

Ot he r Revenu es ( R$ m i l l io n s )

1 4 . 4 %3 1 . 2 %

12 .1

12 .9

1 5 . 8

3 Q0 7 2 Q0 8 3 Q0 8

3 5 . 8

4 0 . 9

9 M0 7 9 M0 8

BM&F Segm en t ( R$ m i l l i on s )

1 9 . 5 %

8 . 3 %

1 5 7 . 4

1 6 1 . 3

3 Q0 7 2 Q0 8 3 Q0 8

5 2 8 . 3

6 3 1 . 1

9 M0 7 9 M0 8

1 7 0 . 4


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P r i c i n g p o l i c y f o r B M & F a n d B o v e s p aseg m en t s - Sch ed u l e

25% dicount applied to shareholders with at least 10 thousand BMEF3 stocks for the trading and clearing services

offered by the BM&F segment

Additional 5% discount for trading and clearing services offered by the BM&F segment, applied to every investorFrom Aug 25th

to Nov

14th/2008Extinction of all discounts after the unification of BMEF3 and BOVH3 shares, creating the BVMF3 ticker

Review of the trading and clearing fees for the contracts negotiated on the BM&F segment, according to the base

tableAnnoucement of discounts applied to the different types of participants of the BM&F segment, aiming to

compensate the additional revenues obtained with the discounts termination, respecting the following criteria:40% discount for clients that trade through Brokeragehouses50% discount for clients that trade through DMA

70% discount

for

algorithm

tradersEstablishment of a new pricing policy that will be based on volume traded

Differentiation of trading fees between individuals/investment clubs and the other participantsChange on the custody fees (Bovespa Segment), respecting the following criteria:

R$ 3,00 per inactive account

R$ 6,90

per

active

accountR$ 1,00 per stock (ISIN code) for portfolios with more than R$ 100.000

Changes for fees involving fixed income assets, spot FX and securities lending (BTC)

Date Event

Until Aug 22th,

2008

From Nov 17th

to Feb 13th /

2009

Starting from

Feb 16th/09


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Op er a t i n g Ex p en ses Br eak d o w n

Tota l ( R $ m i l l i on s )

1 4 5 . 61 4 6 . 7

1 3 7 . 2

3 Q0 7 2 Q0 8 3 Q0 8

4 1 4 . 24 1 6 . 4

9 M0 7 9 M0 8

- 5 . 8 %

0 . 5 %

Thi r d Pa r t y Se rv i ce s ( R $ m i l l io n s )

5 . 7 %1 2 . 1

1 0 11 . 5

3 Q0 7 2 Q0 8 3 Q0 8

2 9

9 M0 7 9 M0 8

- 5 . 3 %

Data Process ing ( R$ m i l l io n s )

1 0 . 6 %

1 . 1 %

3 6 . 5

4 1 . 6

3 6 . 8

3 Q0 7 2 Q0 8 3 Q0 8

1 0 3 . 1

1 1 4

9 M0 7 9 M0 8

30 .7

Per sonne l ( R$ m i l l i on s )

2 . 4 %- 4 . 4 %5 7 . 9

5 7

3 Q0 7 2 Q0 8 3 Q0 8

1 6 3 . 4

1 6 7 . 3

9 M0 7 9 M0 8

5 5 . 4


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M ai n I m p act s o n t h e I n co m e Tax e s

(1) Refers to the tax loss used to compensate the taxable income obtained in September 2008

R$ Mi l l i on s

3Q08 9M08Income Before Tax 217.9 850.3Theoretical Tax (34%) 74.1 289.1

Additions and exclusions in theTax Re ort Book

-6.0 15.3

Interest on Capital -52.7 -61.2Tax Loss - Boves a Holdin (1) -5.4 -5.4Goodwill Amortizaton 41.4 69.0Others 10.7 12.9

Total 68.1 304.4


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Defe r r ed Asset

(1) There will be additional deferred tax credits, to be registered considering the goodwillamortization for Bovespa Holding for the period of October and November/08, of R$ 27.9 million

(2) Related to the 30% of the forecasted pre tax income of BVSP (former Bovespa Holding) forOctober and November/08

(3) Due to provisions created for employees compensation and third party expenditures

(4) Credits generated during the fiscal year of 2007

R$ Mi l l i on s

Event Deferred Asset

Goodwill Amortization(1) 202.8 68.9

Tax Loss carry forward - Bovespa

Holding (2) 33.5 11.4

Temporary Provisions (3) 17.1 5.8Impact on 2008 earnings 253.4 86.2Others (4) 10.6 3.6Total Deferred Tax Assets 264.0 89.8


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I n t e r est I n co m e Br eak d o w n

NOTE: The loan obtained with Bradesco Bank was entirely paid in November 11 th , 2008.

(1) Composed mainly of the remuneration of BM&FBOVESPAs total cash, including both proper andcollaterals deposited in cash.

(2) Payment of taxes regarding Interest on Capital received by BM&FBOVESPA from BOVESPA HOLDING

(3) Payment of taxes regarding Interest on Capital received by BOVESPA HOLDING from BVSP and CBLC

R$ Millions

Description 3Q08 9M08

Financial revenues (1) 93.7 269.0

Financial expenses 25.7 46.0Interests regarding the loan 13.8 16.6IOF (Tax on financial transactions) 1.0 5.0PIS and COFINS contingencies Interest on Capital BM&FBOVESPA (2) 2.9 2.9Settlement and Custody services hired by BM&F Bank 2.7 8.0

FX variations 1.6 6.4PIS and COFINS contingencies Interest on Capital BOVESPA HOLDING(3) 1.6 2.6Banking expenses 0.5 1.0Other 1.6 3.5

TOTAL INTEREST INCOME 68.0 223.0


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Pr o Fo r m a I n co m e St a t em en t s

(In thousands of reais) 3Q07 2Q08 3Q08 9M07 9M08Gross Operating Revenues 402,008 483,625 450,833 1,071,551 1,372,066

Revenues from trading and/or settlementsystems - BM&F segment 157,388 161,321 170,386 458,373 486,645

Revenues from trading and/or settlementsystems - Bovespa segment 232,541 309,329 264,601 577,361 844,457

Other operating revenues 12,079 12,975 15,846 35,817 40,964

Deductions from revenues (41,219) (49,446) (46,158) (109,180) (140,492)

Net operating revenues 360,789 434,179 404,675 962,371 1,231,574

Operating expenses (145,572) (146,700) (137,158) (414,242) (416,408)Operating income 215,217 287,479 267,517 548,129 815,167

Goodwill amortization - (81,105) (121,658) - (202,763)

Interest income, net 77,989 77,244 67,957 232,485 222,993

Non-operating income 9,742 7,531 4,080 16,627 14,922

Net income before taxes 302,948 291,149 217,897 797,241 850,319

Income and social contribution taxes (97,922) (124,973) (68,109) (266,919) (304,445)e erre ncome an soc a con r u on

taxes - - 86,177 - 86,177

Minority interest (690) (970) (354) (2,056) (961)

Net income 204,336 165,206 235,611 528,266 631,090


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To t a l am o u n t o f s h a r es Fu l l yD il u t e d ( t h o u s an d s )

Ea r n i n g s p er Sh a r e Ca l cu l a t i o n Pr o Fo r m a

Ea r n i n g s p e r s h a r e ( R$ )

3Q08

0 . 11 6

9 M 0 8

0 . 3 1 0

A d j u s t e d e ar n i n g s p e r sh a r e ( R$ )

To t a l a m o u n t o f s h a r e s ( t h o u s an d s )

2 ,0 4 4 ,0 1 4 2 ,0 4 4 ,0 1 4

Ea r n i n g s p e r s h a r e ( R$ ) 0 .1 1 5 0 .3 0 9

A dj u s t e d e ar n i n g s p er sh a r e ( R$ )

0 . 1 5 5 0 . 3 7 5

0 .1 5 4 0 .3 7 4

2 ,0 3 8 ,0 7 3 2 ,0 3 8 ,0 7 3


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Re co n ci l i at i o n o f 9 M 0 8 Co n s o l i d a t e dA d j u s t e d Re su l t s

M in o r i t y I n t e r e st ( 9 6 1 )( 9 6 1 )

R e p o r t e d

I n c o m e B e f o r e Ta x e s

Ope r a t i n g Resu l t

A d j u s t e d N et M a rg i n b y Go o d w i l l A d j u s t e d N et I n c om e b y Go o d w i l l

I n c o m e Ta x a n d So c ia l Co n t r i b u t i o n

N o n - Op e r at i n g I n co m eFi n a n c i a l I n c o m e , n e t

Go o d w i l l A m o r t i z a t i o n

EB I TD A M a rg i n

EBI TDAOp e r a t i n g M a rg i n

Oper a t i n g Exp enses

Ne t Reven ues

8 1 5 , 1 6 76 7 2 , 2 7 7

8 3 8 , 8 9 76 9 6 , 0 0 7

6 8 . 1 % 5 6 . 5 %

( 3 0 4 , 4 4 5 )( 2 6 2 , 4 3 8 )

1 4 , 9 2 21 4 , 9 2 22 2 2 , 9 9 32 2 2 , 9 9 3

( 2 0 2 , 7 6 3 )

( 4 1 6 , 4 0 8 )( 5 5 9 , 2 9 8 )

1 , 2 3 1 , 5 7 41 , 2 3 1 , 5 7 4

R$ Thousands

5 4 .6 % 6 6 .2 %

( 2 0 2 , 7 6 3 )

7 0 7 ,4 2 8 8 5 0 ,3 1 8

Non Recu r . A d j u s t e d

N e t M a rg i n

N et I n co m e

5 1 . 2 % 4 3 . 1 %

6 3 1 , 0 9 05 3 0 , 2 0 6 6 6 , 2 4 3

9 0 , 4 0 5

6 6 , 2 4 3

( 2 4 , 1 6 2 )

9 0 , 4 0 5

9 0 , 4 0 5

9 0 , 4 0 5

9 0 , 4 0 5

9 0 , 4 0 5

9 0 , 4 0 5

( 2 4 , 1 6 2 )

6 6 , 2 4 3

1 4 7 , 3 4 8

D e f er r e d Ta x Cr e d i t s ( 8 6 , 1 7 7 )( 8 6 , 1 7 7 ) ( 2 4 , 1 6 2 )( 2 4 , 1 6 2 )

1 4 2 , 8 9 0

1 4 2 , 8 9 0

1 4 2 , 8 9 0

( 4 2 , 0 0 7 )

1 0 0 , 8 8 4

1 0 0 , 8 8 46 6 4 .0 3 0 7 6 4 .9 1 45 3 .9 % 6 2 .1 %


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1 4- 6 . 5 %

3 9 . 7 %

- 3 7 . 3 %

- 2 2 . 7 %

9 . 5 %

Bo ar d Co m p e n sa t i on

Taxes

M a r k e t i n g

Supp l i e s

C o m m u n i c a t i o n

M a i n t e n a n c e

Th i r d Pa r t y Se r v ice s

D ep r e ci at i o n & A m o r t i z at i o n

Da ta P roces s ing

Pe r sonne l

Leases

2Q08Var%

3 Q 0 8 x 2 Q 0 8

O t h e r sTo ta l

5 6 , 9 6 6

1 , 6 8 5

3 , 2 7 0

2 , 0 2 0

7 , 8 2 4

1 , 2 0 0

4 , 9 8 4

9 , 9 6 2

4 1 , 6 1 8

1 , 0 9 6

8 , 1 5 21 4 6 , 7 0 0

7 , 9 2 3

- 1 4 . 0 %

- 9 . 1 %

1 5 . 1 %

1 . 3 %

- 1 2 . 0 %

- 2 . 8 %

- 2 1 3 . 7 %

- 3 2 . 0 %

Ex p e n ses Pr o Fo r m a

BRL th ousands

1 , 2 0 0

3Q08

11 , 3 8 9

1 3 7 , 1 5 8

5 5 , 3 6 4

3 6 , 8 4 3

11 , 4 7 0

2 , 9 7 2

4 , 2 8 7

9 2 8

5 , 3 2 4

( 1 , 9 1 6 )

1 , 2 6 7

8 , 0 3 0

Var%

3 Q 0 8 x 3 Q 0 7

- 5 . 8 %

1 8 . 5 %

-

- 1 9 . 4 %

3 0 . 0 %

2 1 . 2 %

- 1 7 . 0 %

- 5 . 3 %

- 6 . 4 %

1 . 1 %

- 4 . 4 %

- 1 7 6 . 2 %

- 4 2 . 2 %

2 , 5 1 3

9 , 2 1 6

1 , 1 5 1

3 , 5 3 8

3 , 5 8 0

1 2 , 111

8 , 5 8 0

3 6 , 4 5 6

5 7 , 8 9 5

3Q07

-

9 , 6 0 9

9 2 3

1 4 5 , 5 7 2


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Con so l ida t ed Cor por a t e Ea r n in gs

M in o r i t y I n t e r e st e d

N e t I n c o m e Be f o r e Ta x

Opera t i ng Resu l t

I n c o m e Ta x a n d So c i al Co n t .

Non Ope ra t i ng Resu l t

Finan c ia l Resu l t

Go o d w i l l A m o r t i z a t i o n

EB I TD A M a rg i n

EBI TDA

Op e r a t i o n a l M a rg i n

Opera t i ng Exp enses

Ne t Revenu es

R$ Thou sands

N e t M a rg i n

N et I n co m e

D ef e r r e d I n c o m e a n d So c Co n t .

( 3 5 4 )

3 Q 0 8

2 1 5 , 0 3 3

2 2 3 , 0 6 3

5 5 . 1 %

( 4 6 , 9 3 5 )

4 , 0 8 0

6 7 , 9 5 6

( 1 2 1 , 6 5 8 )

( 1 8 9 , 6 4 2 )

4 0 4 , 6 7 5

5 3 . 1 %

1 6 5 , 4 11

4 9 . 7 %

2 0 0 , 9 7 0

8 2 , 8 4 8

( 9 6 1 )

9 M 0 8

6 7 2 , 2 7 7

6 9 6 , 0 0 7

5 6 . 5 %

( 2 6 2 , 4 3 8 )

1 4 , 9 2 2

2 2 2 , 9 9 3

( 2 0 2 , 7 6 3 )

( 5 5 9 , 2 9 8 )

1 , 2 3 1 , 5 7 4

5 4 . 6 %

7 0 7 , 4 2 8

4 3 . 1 %

5 3 0 , 2 0 6

8 6 , 1 7 7

1 H 0 8

( 6 0 7 )

4 5 7 , 2 4 3

4 7 2 , 9 4 4

5 7 . 1 9 %

( 2 1 5 , 5 0 3 ) *

1 0 , 8 4 2

1 5 5 , 0 3 7

( 8 1 , 1 0 5 )

( 3 6 9 , 6 5 6 )

8 2 6 , 8 9 9

5 5 . 3 %

5 4 2 , 0 1 7

3 9 . 8 %

3 2 9 , 2 3 6

3 , 3 2 9

Th e a m o u n t o f d e f e r r e d t a x c r e d i t s ,b y t h e e n d o f 1 H 0 8 , w a s a g g r e g a t e d i nt h e I n c o m e Ta x e s p a y a b l e


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1 6

Bal an ce Sh eet a s o f 0 9 / 3 0 / 2 0 0 8

5 7 3 , 7 2 2

1 , 11 0 , 3 5 12 , 4 0 8 , 0 3 5

2 , 0 5 5 , 2 2 9

2 0 , 7 5 3 , 4 2 6

2 0 , 7 5 3 , 4 2 6

Ot h e r Cr e d i t s

To t a l Asse t s

P e r m a n e n t

Cash an d Cash Equ iva l en t

Long Te rm Asse t s

Cur r en t

1 7 , 7 5 9 , 9 2 0

5 8 5 , 4 7 1

3 5 2 , 8 0 6

Fixed

I n v e s t m e n t s

2 4 2 , 4 0 6

1 , 3 1 7 , 3 7 2

I n t a n g i b l e 1 6 , 1 8 2 , 1 4 8

D e f e r r e d 1 7 , 9 9 4

Asse t s ( R$ Thousands )

Sh o r t Te r m D eb t

To ta l L i ab i l i t i e s and Equ i t y

L o n g Ter m Li a b i l i t i e s

Cash Col la t e ra l

O t h e r s

C u r r e n t

9 5 , 9 2 3

3 8 8 , 3 8 9

1 4 8 , 2 4 0

St o c k h o l d e r s Eq u i t y

M in o r i t y I n t e r e st

1 9 , 5 3 1 , 8 8 0

1 5 , 2 7 2

Li a b i li t i e s a n d St o ck h o l d e r s Eq u i t y( R$ Thousands )


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THE NEW COMPANY


18/65

1 8

X To b e co m e a n i n t e g r a t e d ex ch a n g e , o f f e r i n ga f u l l r a n g e o f se r v i ce s, o n e st o p s h o p

X To o f f e r i n n o v a t i v e an d m u l t i asse t c l ass

p r o d u c t s an d t h e st a t e o f t h e ar t i n t r a d i n ga n d cl e ar i n g

X To b e a g l o b a l p l ay e r a n d t h e h u b f o r La t i nA m e r i ca s ecu r i t i es

Main Goa ls


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1 9

M a r k e t D a t a

I nd ices L icens ing

So f t w a r e L i c en s i n g

Co m p l e t e Ar r a y o f Se r v i c esCo m p l e t e Ar r a y o f Se r v i c es

H i g h Co m p e t i t i v e Ed g eH i g h Co m p e t i t i v e Ed g e

Bu s i n ess M o d el B y Re v e n u e s

Ca sh M a r k e t Tr a d i n g - s h ar e s, b on d s an d FX

L i s t i n g

D e r i v a t i v e s M a r k e t Tr a d i n g

D e p o s i t o r y

Secu r i t i e s Lend ing

Clea r ing and Se t t l em en t

Cus tody


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2 0

9 Re g u l a t i o n i n B r a zi l d e m a n d s t h a t a l l t r a d e s ca r r i e d i n e x c h a n g e sm u s t b e m a t ch e d a t t h e b e n ef i ci al o w n e r l e v el

9 I n t e r n a li za t i o n o f o r d e r s is n o t a l l ow e d

9 Ou r c le ar i n g h o u s e s a ct a s ce n t r a l co u n t e r p a r t y a g e n t s an d w eh a v e t h e r i sk m a n ag e m e n t a t t h e i n v e st o r l e v el w i t h m a r k t om a r k e t ( m a rg i n v a r i a t i o n ca ll s) d o n e o n d a i ly b a s is

9 A l l t r a d e s m u s t b e ca r r i e d t h r o u g h a b r o k e r a g e h o u s e ( c l ea r i n ga g en t ) , w h i ch i s r e sp o n si b l e f o r t h e i r cl i en t s r i sk a n d k n o w y o u r

c l ien t po l i c i es

9 Cu r r e n t r e g u l a t i o n r e q u i r e s se t t l em e n t , cl e ar i n g a n d d e p o si t o r ys er v i ce s t o b e p r o v i d e d t o t h i r d p a r t i e s o n a c om m e r ci a l b as is

Re g u l at o r y En v i r o n m e n t


21/65

2 1

9 Risk Ca lcu la t ion and Col la t e ra l P ledged

9 Ri sk c a lcu l a t i o n i n a l m o st r e al t i m e ( c a l cu l a t e d e v e r y 1 5 m i n u t e s) ,u p d a t i n g t h e r e g i s t e r e d t r a n s a c t i o n s a n d t h e r e q u i r e m e n t o f

a d d i t i o n a l c o l l at e r a l w h e n e v e r n e ce ss ar y .9 Risk ca l cu l a t i on b a sed on s t r e s s t e s t i ng .

9 When i t comes t o t he Equ i t i e s C lea r inghouse (CBLC) andDer iva t i ve s C lea r inghouses , r i sk ca l cu l a t i on and co l l a t e r a l

r e q u i r e m e n t a r e p e r f o r m e d in d i v i d u a ll y, a cco r d i n g t o e ach cl i en t o rf i n a l b e n e f i ci a l o w n e r.

9 Col l a t e r a l p l edged i n t he Clea r ingh ouse s cust ody accoun t , w i t hs eg r e g a t i o n b e t w e en t h e d i f f e r e n t c l i en t s .

9 Lega l P ro t ect i on o f Pl edged Co l l a t e r a l

9 Lega l p ro t ec t i on o f t he co l l a t e r a l he ld by c l ea r inghouses aga in s tb a n k r u p t cy p r o c ed u r e s a n d j u d i ci a l b l o ck i n g a t t e m p t s b y cr e d i t o r s

Risk ca l cu l a t ion and Pledge o f Co l l a t e r a l


22/65

2 2

Ri sk M an a g em en t - Co l la t e r a ls

R$ billions

Clearings Deposited RequiredDerivatives 96.2 78.1

Cash Equities 22.7 12.9FX 4.0 1.5

Fixed Income 1.4 0.1

Total in BRL

Date: December 2 nd , 2008

Public BondsLetters of CreditOthers*

86.54.45.3

73.42.62.1

Total in USD124.3

53.092.639.5

* Collateral deposited in shares of stocks, bank CDs, gold, cash and quotes of funds


23/65

2 3

9 Se t t l e m e n t d i r e ct l y w i t h Ce n t r a l Ba n k o f B r a zi l

9 Even t hough t he C lea r inghouses a r e no t banks , t hey have ane x c lu s i v e se t t l e m e n t a cco u n t i n t h e Ce n t r a l Ba n k o f B r a zi l t o s et t l e t h e i rt r a n s a c t i o n s

9 T h e d i r e c t s e t t l e m e n t w i t h t h e C e n t r a l B a n k o f B r a z i l a v o i d s t h eCl e ar i n g h o u s e s e x p o s u r e o f c r e d i t r i s k o f f e r e d b y f i n a n c i al i n s t i t u t i o n s .

9 Shor t Se l l ing

9 W hen i t com es t o Equ i t i e s Clea r ingh ouse ( CBLC) , sho r t s el l i ng occu r sw h e n a n i n v e st o r s el l s a se cu r i t y l e n t b y a n o t h e r i n v e st o r . Th e d e ci si o no f l e n d i n g s h a r e s i s t a k e n a t t h e b e n e f i c i a r y o w n e r l e v e l , w h o i se n t i t l e d t o t h e r e t u r n s g en e r a t e d b y t h e t r a n sa ct i o n .

9 Th e b o r r o w i n g o f s ec u r i t i e s i s ce n t r a l iz ed i n t h e Cl e ar i n g h o u s e , w i t hco l la t e r a l r e q u i r e m e n t h i g h e r t h a n t h e se cu r i t y v a l u e ( 1 0 0 % , p l u sa m o u n t e q u iv a le n t t o t h e se cu r i t y p r i ce v a r i at i o n r i sk ) a n d d a i ly m a r kt o m ar k e t .

9 T h e C l e a r i n g h o u s e p l a y s t h e r o l e o f t h e c e n t r a l c o u n t e r p a r t y,g u a r a n t e ei n g t h e r e t u r n o f b o r r o w e d se cu r i t i es.

Se t t l em e n t a n d Sh o r t Se ll i n g


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2 4

BSM CBLC

5 0 %

1 0 0 %5 0 %

Brazi l ianC o m m o d i t i e s

ExchangeBM& F USA BM&F Se t t l emen tBank

1 0 0 % 1 0 0 %5 0 % 8 6 %

BVSP

Ex-Bov.Hold ing

Co r p o r a t e St r u c t u r e Ev o l u t i o n

BVRJ

1 0 0 %

Brazi l ianC o m m o d i t i e s

Exchange

BM& F BOVESPAUSA

BM&F Se t t l em en tBank

1 0 0 % 1 0 0 %5 0 % 1 0 0 %

BVRJ BSM

8 6 %

X Pr e v i o u s St r u c t u r e

X Cu r r e n t St r u c t u r e

1 Q u o t a


25/65

2 5

X S i m p l i f i e d t h e c o r p o r a t e a n d g o v e r n a n c e s t r u c t u r e s , f u l f i l l i n g t h er e g u l at o r y r eq u i r e m e n t s

X N ew A cco u n t i n g l a w ( 11 , 6 3 8 / 0 7 ) w i l l b r i n g t h e BRGA AP cl o se r t o t h eI FRS, w h i c h w i l l b e f u l l y r e q u i r e d f o r t h e f i n a n ci a l s t a t e m e n t s o f 2 0 1 0

X 2 0 0 8 : Th e cu r r e n t co r p o r a t e / a cco u n t i n g l a w r e q u i r e s t h ea m o r t i z at i o n o f t h e g o o d w i l l f or P& L p u r p o se s

B RL 2 0 2 . 8 m i l l i o n a l r e a d y r e co r d e d u n t i l Se p . 3 0 t h , 2 0 0 8

B RL 1 2 1 . 6 m i l l i o n t o b e r e c o r d e d u n t i l t h e en d o f t h e y e a r, b e i n gd e d u ct i b l e R$ 4 1 . 2 m i l l io n c or r e s p o n d en t t o D e ce m b e r / 0 8

TOTAL: BRL 324 .4 m i l l io n

X 2 0 0 9 o n w a r d s: Th e co m p a n y w i l l ad o p t t h e I FRS st a n d a r d s

N o g o o d w i l l am o r t i za t i o n f o r P& L p u r p o se s

Pu r c h a se Pr i c e Al l o ca t i o n o f t h e Go o d w i l l t o b e d i v i d e d b e t w e en :

M ar k e t v a l u e of t h e as se t s ( Ta n g i b l e / I n t a n g i b le s )

Ex p e ct a t i o n o f f u t u r e e a r n i n g s

Co r p o r a t e Re st r u c t u r i n g


26/65

2 6

X W i t h t h e i n c o r p o r a t i o n o f B V SP a n d CB LC i n B M & FB o v e s p a( Ge n er a l M ee t i n g h e ld o n N o v e m b e r 2 8 t h , 2 0 0 8 )

Go o d w i l l b eca m e t a x d e d u ct i b l e r e co g n i ze d i n t h e co r p o r a t eb o o k i n D ec,2 0 0 8 , an d , st a r t i n g f r o m 2 0 0 9 , r e g i st r a t i o n w i l lo ccu r i n t h e t a x r e p o r t

I n t a n g i b le s a n n u a l ly i m p a ir e d t o M ar k e t v a l u e ( 2 0 0 9 )

X I n t e r e st o n Eq u i t y Ca p i t a l

Eq u i t y b a si s h a s b e en i n c r e as ed a f t e r t h e i n t e g r a t i o n , w h i c hr a i se s t h e I n t e r e st o n Eq u i t y p o t e n t i a l v a l u e

Co r p o r a t e Re st r u c t u r i n g


27/65

2 7

Re ce n t A cq u i s i t i o n s f r o m co m p a r a b l eExchanges

Source: Deloitte Touche Tohmatsu

CMECBOT

NYSE

EURONEXTNASDAQ

OMXASX

SFENYSEARCH

NASDAQ

INSTINETNASDAQ

CARPENTEREURONEXTUBITRADE

EURONEXTDAVIDGE

AVERAGE

Brands/Trade names 1,4% 1,4% 2,3% 2,5% 0,8%Customer Relationships 7,6% 6,9% 6,7% 2,1% 17,0% 22,0% 6,0% 3,0% 7,9%Licenses / Agreements / Registrations 0,5% 27,2% 13,0% 34,1% 8,3%Mar et ata customer

relationship / Software /

Technology2,2% 1,2% 0,5% 0,8% 1,0% 4,0% 1,0% 1,0%1,3%

Market rate and above

market leases 0,1% 0,0%Products in development 0,03% 0,0%Real estate lease

relationship 0,2% 0,0%

Trading Products 52,1% 5,8%

Other 1,4% 6,0% 0,8%Total of Intangible Assets 64,1% 36,9% 23,2% 0,5% 39,5% 18,0% 32,0% 7,0% 4,0%25,0%Remaining Assets 2,7% 18,9% 43,4% 59,8% 23,7% 0,0% 1,0% 51,0% 14,0%23,8%Goodwill 33,2% 44,2% 33,4% 39,7% 36,8% 82,0% 67,0% 42,0% 82,0%51,1%Total 100,0% 100,0% 100,0% 100,0% 100,0% 100,0% 100,0% 100,0% 100,0%100,0%

Si l i G d i ll A i i


28/65

2 8

Si m u l at i o n - Go od w i ll Am o r t i za t i o na cco r d i n g t o I FRS

9 Th e g o o d w i l l ex p e n s e i s n o t r e g i s t e r e d f o r c o r p o r a t e p u r p o s e s

9 G o o d w i l l e x p e n s e r u n s i n t h e Ta x I n c o m e S t a t e m e n t , a n d t h e n g o e s t o t h ec o r p o r a t e b a se

9 H i g h e r n e t p r o f i t , i n c r e a si n g d i v i d e n d d i st r i b u t i o n

Description Amount Description Amount

Revenues 100 Revenues 100

Expenses (40) Expenses (40)Goodwill Amortization (50)

Pre Tax Income 60 Pre Tax Income 10

Taxes (3) Taxes (3)

NET PROFIT 57Effective tax rate 6% Official tax rate 34%

CORPORATE TAX(Base for dividend distribution) (Base for tax calculation)

INCOME STATEMENT


29/65

2 9

INTEGRATION


30/65

3 0

Sy n e rg y o f H ea d co u n t

Fu l l em p loyees

Ou t sou rced

Tota l

- 1 3 . 1 %

May / 0 8

1 , 3 8 6

4 4 0

1 , 8 2 6

3 8 7

1 , 4 2 7

1 , 8 1 4

3 0 3

1 , 2 0 4

1 , 5 0 7

Sep / 0 8Ju l/ 0 8 %

- 3 1 . 1 %

- 1 7 . 5 %

3 19 al r ead y d i sm i ssed b y 0 9/ 3 0 / 2 00 8

4 6 w i l l l eav e t he com p an y u n t il 0 4 / 0 4 / 2 0 0 9

1 8 2

3 1 9

L a y o f f s

1 3 7


31/65

3 1

Sy n e rg i e s Up d a t e

Pr e l i m i n a r y Es t i m a t e s ( A p r i l / 0 8 )

Cu r r e n t Es t i m a t e s ( A u g u st / 0 8 )

2 0 0 8 E 2 0 0 9 E 2 0 1 0 E

5 0

R$ Mi l l ions

1 0 %

1 8 %

2 5 %9 0

1 2 5

9 5 *

1 9 %

2 4 %

1 2 0

2 6 %

1 3 1

* Annua l i zed


32/65

3 2

S y n e rg i e s

32%38% 34%

28%

31% 34%

22%

16% 16%

18% 15% 15%

2008 2009 2010

Processes Others Processes Marketing Processes IT Personnel

68% 62% 66%

BRL 95 MM BRL 120 MM BRL 131 MM

BRL 65 MM

BRL 30 MM

BRL 75 MM

BRL 45 MM BRL 45 MM

BRL 86 MM


33/65

3 3

Syn er gy o f Pr oces ses

X So ft w ar e an d h ar d w ar e

Re d u ct i o n o f t h e d at a c en t e r s f r o m 4 t o 2 , an d d e a ct i v a t i o n o f t h e f o r m e rt e c h n o l og y u s e d f o r t h e i r co n n e ct i o n ( s u b st i t u t e d b y n e w e r a n d ch e a p er )

M ai n f r a m e t u r n o f f

Re n e g o t i a t i o n o f c o n t r a ct s a n d s u p p l i e r s Ca n c el l a t i o n o f m a i n t e n a n c e c o n t r a ct s f o r r o u t e r s an d s e r v e r s

Ca n ce l la t i o n o f t h e m a i n t e n a n ce co n t r a ct w i t h Eu r o n e x t p l a t f o r m

X M ar k e t c o m m u n i c a t i o n a n d c on f e r e n c es sp o n s o r s h i p s M a r k e t i n g p r o g r a m s o p t i m i za t i o n

M a n d at o r y p u b l i c at i o n s r e d u ct i o n f r o m 2 t o 1

I n t e g r a t i o n a n d r a t i o n a l i za t i o n o f t h e ca l l ce n t e r s

Re n e g o t i a t i o n o f t e l ep h o n y co n t r a c t s

X Fi n a n c e / Co r p o r a t e

ERPs

A u d i t i n g


34/65

3 4

X I n t e g r at i o n of t r a d in g p la t f o r m o n e f r o n t e n d sy st e m

X I n t eg r at i on of p ost - t r ad in g p la t f o r m r eq u ir es t h ea p p r o v a l f r o m Ce n t r a l Ba n k

X P r e m i s e s

X O t h e r s ( t r a v e l i n g e x p e n s e s , t h i r d p a r t y e x p e n s e s , t h i r dp ar t y / o t h e r t h a n I T, t e l eco m a n d a d v iso r y )

A d d i t i o n a l Sy n e rg i e s

A lt e r n a t i v e f o r Tr a d i n g Pl at f o r m s


35/65

3 5

A lt e r n a t i v e f o r Tr a d i n g Pl at f o r m sI n t e g r a t i o n

MegaBolsa GTS/WTR

FRONT END SOLUTIONFIX Connectivity

TRADING SCREEN

Order registration

Order routedbetween the two

matching engines


36/65

3 6

Tr a d i n g , Re g i st r a t i o n & Cl e ar i n g M o d e l

FX Cash M ar k etOpen ou t c ry

Elec t ron ic t r ad ing

OTC regis t ra t ion

FX Clear in gh ou se

D e r i v a t i v e sOpen ou t c ry



D e r i v a t i v e sC lea r inghouse

St ocks andCorp o ra t e Bond s

Elec t ron ic Trad ing

OTC Regis t ra t ion

CBLC

G o v e r n m e n tB o n d s



Secur i t i e sC lea r inghouse


37/65

3 7

PRODUCT DEVELOPMENT

CM E Or d e r Ro u t i n g A g r e em e n t a n d


38/65

3 8

CM E Or d e r Ro u t i n g A g r e em e n t a n dD M A Ti m e l i n e

Au g

3Q08

Se p

t r a d i t i o n a l D MA

I MPLEMENTED

2 9 t h

CME Order Rout inga g r e em e n t im p l e m e n t a t i o n

( Or d e r f l ow )

Glob ex GTS Glo b ex GTS

Dec 15 t h ,0 8

4 Q 0 8

Oct No v Dec

DMA v ia d i r ec tc o n n e c t i o n

Q109

2 0 0 9

DMA v iaa p r o v i d e r

FIRST PHASE

SECOND PHASE

THIRD PHASE

FOURTH PHASE

For both Cash and

Derivatives Markets

Co- loca t ion

3 0 t h

Traditional DMA figures until Nov 30th/08:

(i) 2,600 trades per day (7% from total)(ii) 23,000 contracts per day (2% from total)(iii) Around 30 brokers certified

D MA D l t


39/65

3 9

GTS Cent er o fN e g o t i a t i o n

Sys tem

Open Out c ry

I n t e r f a c eMMTP

GT S / G L- Tr a d e

USER DI STRI BUTI ON I NTERMEDI ARY( CM/ BROKER) B M & F

N e w GT S Ce n t e rFI X

G a t e w a y

N ew ce nt e r :

St r a t e g i c i n d e p e n d e n c e

N e w p r o j e c t s

Sp e e d / M e m o r y p r o c e ss i n g

Licens ing cos t

Ca p a ci t y X l i n e a r CA PEXL o g i c al l i n kCME GLOBEX

Wo r l d b i g g e s t n e t o f d i s t r i b u t i o n o fd e r i v a t i v e s

GLOBEX

I n t e r n a t i o n a lD M A P r o v i d e r

N e t w o r k e x p o n e n t i al b e n e f i t

FI X

L o g i c al l i n k

NETWORKFI XTr a d i t i o n a l D M A

FI X

D i r e c t C o n n e c t i o n D M A

FI X

NETWORK

D MA D ev e l o p m e n t

Ot h e r I n i t i a t i v es


40/65

4 0

Ot h e r I n i t i a t i v es

B o v e sp a Se g m e n tX ETF ( Lo ca l I n d e x e s )

X Th r e e ETFs s t a r t e d t r a d i n g o n D e c 2 n d , 2 0 0 8 ( I b o v e sp a , La rg ea n d M i d Ca p s I n d e x a n d Sm a l l Ca p s I n d e x )

X BD R w i t h co r p o r a t e g o v e r n a n c e

B M& F Se g m e n t

X M ar k e t m a k e r s f o r d e r i v a t i v e s ( i n v o l v in g ex e m p t i o n o f t r a d i n g

f e es a n d r e b a t e s o f e x c h a n g e s r e v e n u e s f o r t h e p r o d u c t s t r a d e d )

X I m p l em e n t a t i o n o f Tr e asu r y D ir e ct ( Teso u r o Di r et o )

Go v e r n m e n t B o n d s t h r o u g h D M A

X N o n - St a n d a r d i ze d De r i v a t i v e s p l a t f o r m ( b i l at e r a l n et t i n g )

X B RL/ EU R a n d B RL/ JPY f u t u r e co n t r a c t s

D i s c o u n t s o f Tr a d i n g F e e s f o r B M & F


41/65

4 1

seg m e n t ' s Pr o d u ct s

9 4 0 % t h r o u g h Br o k e r a g e H o u se s;

95 0 % t h r o u g h D MA; an d

9 7 0 % f o r c l ie n t s r e g ist e r e d a s Al g o r i t h m Tr a d er s .

Th e Co m p a n y w i l l h a v e a B a se Ta b l e w h e r e t h e d i s co u n t p e r c en t a g esw i l l f a l l u p o n , t e m p o r a r i l y, a cco r d i n g t o i t s ch a r a c t e r i st i c s an d a cce ss t ot h e Tr a d i n g Sy s t em , as in d i ca t e d b el o w , st a r t i n g N o v 1 7 :

T h i s d i s c o u n t p o l i c y w i l l r e s u l t i n n e u t r a l i m p a c t o v e r t h e a n n u a l i z e di n co m e o f t h e c om p a n y.

St a r t i n g o n Fe b . 1 6 , 2 0 0 9 , t h e f i x e d d i sco u n t p o l i cy w i l l b e r e p l ac ed b y av o l u m e i n c e n t i v e m e t h o d o l o g y, c o n s i d e r i n g r a n g e s o f t r a d e d c o n t r a c t sa n d / o r u t i l iza t i o n o f se r v i ce s, w i l li n g t o p r o v i d e g r e at e r b e n e f i t s t o t h eb i g g e st cu s t o m e r s .

BM & F se g m e n t ' s f o r m e r Pr i ci n g Po l icy t e r m i n a t e d o n A u g 2 5 t h2 5 % d i sco u n t f o r t r a d i n g a n d c le ar i n g f e e s a p p l ie d t o i n v e st o r s t h a the ld a t l e a st 10 ,00 0 BMEF3 s t ocks .

Cen t r a l Dep o si t o r y N ew Pr icin g


42/65

4 2

S t r u c t u r e

Th e Ce n t r a l De p o si t o r y w i l l ch a rg e t h e f o l l o w i n g f e e s, on a m o n t h l y b a si s

Cu s t o d y a cc ou n t m a i n t e n a n c e

9 BRL 3 .00 p e r i n act i ve accoun t9 BRL 6 .50 pe r ac t iv e accoun t

Per a s se t and va lue o f t he s t ocks

9 B RL 1 .0 0 p e r a s se t ( I SI N c o d e)9 Pe r ce n t a g e o f t h e a v e r a g e v a l u e r e g i s t e r e d a t t h e a cc ou n t9 Av er a g e v al u es b el o w BRL 1 0 0 ,0 0 0 d u r i n g t h e m o n t h w i l l b ee x em p t e d f r o m t h i s f ee

Cus t ody t r an s f e r


43/65

4 3

INFORMATION TECHNOLOGY

M ai n I T p r o j e ct s r e g a r d i n g t h e


44/65

4 4

e n h a n ce m en t o f t r a d i n g c ap a ci t y

Un t i l Se p t e m b e r 3 0 t h , 2 0 0 8 , t h e I T e x p e n s e s r e g a r d i n g t h e p r o j e ct s o f i n c r e a si n gt h e ca p ac it y o f t r a d e s a n d r e d u ci n g t h e l a t e n cy a m o u n t e d R$ 2 4 . 3 m i l l io n :

9 BM&F Segm en t

E x p e n d i t u r e s : R$ 13.6 million and M a i n P r o j e ct s : New GTS, Direct Market Access, CME

Globex

9 BOVESPA Seg m en t

E x p e n d i t u r e s : R$ 10.7 million and M a i n Pr o j e ct : Megabolsa

2007 2008 2009BM&F SegmentOrders per second 25 3,750 8,000

Trades per day (thousands) 50 200 400Bovespa SegmentOffers per day (millions) 2.4 7.0 15.0Trades per day (thousands) 300 770 1,500

Capacity Evolution


45/65

4 5

OPERATIONAL DATA

M a cr o e co n o m i c Ex p e ct a t i o n s


46/65

4 6

GDP Annu a l Grow th ( % )Brazi l ian CPI ( % )

M a cr o e co n o m i c Ex p e ct a t i o n s

N e t Fo r e i g n Di r e ct I n v e st m e n t s (USD Bi l l ions )Pub l i c Sec to r Ne t Deb t t o GDP Ra t io ( % )

Source: Central Bank Focus survey

6,14

4,9

3,03,54,04,5

5,05,56,06,57,0

01/02/08 03/02/08 05/02/08 07/02/08 09/02/082008 2009

5,18

3,553,5

3,8

4,1

4,4

4,7

5,0

5,3

01/02/08 03/02/08 05/02/08 07/02/08 09/02/082008 2009

40,5

39,238,539,0

39,540,040,5

41,0

41,542,0

42,5

01/02/08 03/02/08 05/02/08 07/02/08 09/02/082008 2009

35

30

24,0

25,5

27,0

28,5

30,0

31,5

33,0

34,5

36,0

01/02/08 03/02/08 05/02/08 07/02/08 09/02/082008 2009


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4 7

BM&F SEGMENT

Ov e r a l l AD TV BM & F se g m en t


48/65

4 8

Ov e r a l l AD TV BM & F se g m en t

Over a l l ADTV (Thousands )

1 . 7 6 5

3 Q0 7 2 Q0 8

1 . 5 4 3

3 Q 0 8

1 . 8 0 8 - 1 4 . 7 %

1 . 6 1 8

1 . 7 7 3

11 M 0 7 11 M 0 8

- 8 , 7 %

A D TV o f M a j o r D er i v a t i v e s Co n t r a ct s


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4 9

B M& F s eg m e n t

I n t e r e s t Ra t e s i n BRL (Thousands ) FX Rat es (Thousands )

I n d i c e s (Thousands )

3Q07 2 Q0 8 3 Q0 8

1 , 0 3 0

9 5 27 1 6

5 6 4 5 7 0

2 Q0 7 2 Q0 8 3 Q0 8

8 8 8 7

- 3 0 . 5 %4 9 8

3 Q0 7 2 Q0 8 3 Q0 8

I n t e r e s t Ra t e s i n BRL (Thousands ) FX Rat es (Thousands )

1 4 . 4 %

1 1 4- 2 3 . 6 %

A g r o ( Thousands )

3 Q0 7 2 Q0 8 3 Q0 8

1 61 7

1 2

3 6 . 2 %

1 1 M0 7 1 1 M0 8

1 , 0 1 6

8 1 0

- 2 0 . 2 %

1 1M0 7 1 1M0 8

4 7 3

5 5 11 6 . 6 %

1 1M0 7 1 1M0 8

1 0

1 55 3 . 4 %

1 1M0 7 1 1M0 8

1 1 4

9 0

- 2 0 . 8 %

Rat e p er Co n t r a ct BM & F


50/65

5 0

Rat e p er Co n t r a ct BM & F

On A ug u st 2 5 , 2 00 8 , t h e d is co u nt p ol icy a pp li ed t o i n ve st o r s t h at h el d a t l ea st 1 0 .0 0 0 st o ck s BM EF3 w a s t e rm i n at e d.

R$

* I n c l u d e s t r a d i n g f e s s , c l e ar i n g f e e s , c l e ar i n g f e e s a t m a t u r i t y a n d p e r m a n e n c e f ee s

FX Rat es

I n d i c e s

C o m m o d i t i e s

OTC

W e b Tr a d i n g

Tota l

I n t e r e st Ra t e s i n B RL

2Q08

1 . 0 6 4

1 . 7 8 5

2 . 4 6 0

3 . 8 9 0

2 . 3 2 2

0 . 1 6 0

1 . 3 8 1

R$

Tota l

3Q07

1 . 0 4 9

1 . 9 3 7

1 . 6 6 8

3 . 5 9 0

1 . 9 0 4

0 . 0 6 9

1 . 3 2 0

3Q08

1 . 2 6 8

2 . 0 5 7

2 . 1 5 7

3 . 8 1 4

2 . 5 8 7

0 . 1 6 0

1 . 5 9 8

Vo l u m e s Sl o w d o w n w a s p a r t i al ly o f f se tb t h RPC I BM & F t


51/65

5 1

Over a l l ADTV (Thousands )

1 . 3 2 0

1 . 3 8 1

1 . 5 9 8

3 Q0 7 2 Q0 8 3 Q0 8

* I n c l u d e s Tr a d i n g F e es , Cl e a r i n g F e e s, P e r m a n e n c e

Fees and Clea r in g Fees a t th e Matur i ty

b y t h e RPC I n c r ea se BM & F seg m e n t

1 , 7 6 5

3 Q0 7 2 Q0 8

1 , 5 4 3

3 Q 0 8

1 , 8 0 8+ 2 1%- 1 4 . 7 %

Over a l l RPC ( R $ )

Over a l l ADTV Ev o lu t ion


52/65

5 2

I n M i l l i o n s o f Co n t r a c t s

1 . 0 1

1 .131 .23

1 .27

1 .45

1 . 3 2

1 . 4 8

1 . 7 61 . 6 1

1 .891 .89

2 .13

1 . 8 3

1 . 9 5

1 . 6 1

1 . 8 0

1 .48

1 .361 . 4 5

1 . 6 6

1 . 9 4

1 . 6 71 .69

2 . 1 7

J u l - 0 6

A u g - 0

6

S e p - 0

6

O c t - 0 6

N o v - 0

6

D e c - 0

6

J a n - 0

7

F e b - 0

7

M a r - 0

7

A p r - 0 7

M a y - 0

7

J u n - 0

7

J u l - 0 7

A u g - 0

7

S e p - 0

7

O c t - 0 7

N o v - 0

7

D e c - 0

7

J a n - 0

8

F e b - 0

8

M a r - 0

8

A p r - 0

8

M a y - 0

8

J u n - 0

8

J u l - 0 8

A u g - 0

8

1 . 6 6

1 .37

S e p - 0

8

1 .611 . 4 5

O c t - 0 8

N o v - 0

8

* ADTV until Dec 10 th. 8 trading sessions

1 .101 . 0 5 *

D e c - 0

8

Ov e r a l l Op e n I n t e r e st Ev o l u t i o n


53/65

5 3

1 2 . 211 .7

1 2 . 6 1 2 . 6 12 .5

1 3 . 614 .1

1 2 . 913 .8

15 .41 4 . 9

1 7 . 417 .0

16 .4

1 7 . 71 8 . 3 1 8 . 4

19 .5 19 .9

16 .9

1 8 . 4

21 .1

2 2 . 4 22 .5

20 .7

J u n - 0

6

J u l - 0 6

A u g - 0

6

S e p - 0

6

O

c t - 0 6

N o v - 0

6

D e c - 0

6

J a n - 0

7

F e b - 0

7

M a r - 0

7

A p r - 0 7

M a y - 0

7

J u n - 0

7

J u l - 0 7

A u g - 0

7

S e p - 0

7

O

c t - 0 7

N o v - 0

7

D e c - 0

7

J a n - 0

8

F e b - 0

8

M a r - 0

8

A p r - 0 8

M a y - 0

8

J u n - 0

8

I n m i l l i o n s o f co n t r a c t s

J u l - 0 8

A u g - 0

8

19 .419 .8 1 9 . 4

S e p - 0

8

O

c t - 0 8

18 .7 18 .4

N

o v - 0

8


54/65

5 4

BOVESPA SEGMENT

Tr a d in g A ct i v i t y Bo v esp a seg m en t


55/65

5 5

Av e r a g e D ai l y N u m b e r o f Tr a d e s(Thousands )

A n n u a l i z ed Tu r n o v e r *

Average Da i ly Trad i ng Va lue( R$ Bi ll ions )

5 1 . 5 %

6 1 . 5 %

6 2 . 0 %

5 6 . 1 %

X x . x %

3 Q0 7 2 Q0 8 3 Q0 8 1 1 M0 7 1 1 M0 8

4 .9

6 .55 .3

4 .8

5 .7

3 Q0 7 2 Q0 8 3 Q0 8 1 1 M0 7 1 1 M0 8

1 6 0

2 3 02 5 4

1 4 9 . 2

2 4 4 . 1

3 Q0 7 2 Q0 8 3 Q0 8 1 1 M0 7 1 1 M0 8

6 . 5 %

1 8 . 7 %

5 8 . 7 %

6 3 . 6 %

1 0 . 5 p . p .

x . x p . p

Aver age I BOVESPA (Thousands )

5 4 , 8

6 7 , 5

52 ,3

XX.X

3 Q0 7 2 Q0 8 3 Q0 8 1 1 M0 7 1 1 M0 8

1 %

XX.X%5 5 , 3

* Relation with the trading value of the cash market and the market cap of the exchange

M ar k et D at a an d N u m b er o f I n v e st o r sA cco u n t s Bo v esp a seg m en t


56/65

5 6

A cco u n t s Bo v esp a seg m en t

N u m b e r o f I n v e st o r s A cco u n t s ( t h o u s a n d s )

3 0 1 . 3

5 5 0 . 5

3 4 5 . 9

5 7 1 . 3

3 Q0 7 2 Q0 8 Nov 0 7 Nov 0 8

6 5 . 2 %

3Q08

5 3 9 . 8

8 2 . 7 %

M ar k e t D at a

H o m e B r o k e r N u m b e r o f Cl i en t s( t h o u s a n d s )

1 6 8 . 1

2 9 6 . 0

3Q07 3Q08

7 6 . 9 %

Ve n d o r s N u m b e r o f U se r s( t h o u s a n d s )

5 9 . 93 6 . 7 % 81 .9

3 2 2 . 7 1 0 8 . 9

2Q08 3Q07 3Q082Q08

Li st i n g a n d Se cu r i t i e sLe n d i n g B o v e sp a s eg m e n t


57/65

5 7

Le n d i n g B o v e sp a s eg m e n t

N u m b e r o f I ssu e r s

4 3 4

4 4 6 4 4 3

2 2 62 6 9

2 8 1

6 6 0

7 1 57 2 4

3 Q0 7 2 Q0 8 3 Q0 8

Com pan ies l i s t ed on S tock Exchange Mar ke t

I nves tm en t Funds and o rgan ized OTC i s sue r sTo ta l

Se cu r i t i e s Le n d in g Op e n I n t e r e st - ( R$ b i l li o n s)

23 .22 3 . 5

2 2 . 1

7 .9

3 Q0 7 2 Q0 8 N o v 0 7 N o v 0 83Q08

11 . 9

- 4 8 . 8 % - 6 4 . 2 %

Re v en u e M arg i n * b y A sse t Cl ass - Bo v e sp a


58/65

5 8* Tr a d i n g , c l e ar i n g a n d s e t t l e m e n t f e e s d i v i d e b y t r a d e d v a l u e

6 . 0 0 6

1 3 . 6 7 3

6 . 5 1 0

Cash Der iv at iv es To t a l

Basis Point s

3 Q 0 8 M a rg i n

6 . 0 5 0

1 4 . 4 7 8

6 . 6 6 6

Cash Der iv a t iv es To t a l

Basis Point s

2 Q 0 8 M a rg i n

Spec ia l Li s t i n g Segm en t s Ev o lu t ion


59/65

5 9

9 36.6% of total listed companies9 57.8% of total market capitalization

9 66.4% of total traded value 162

1 9 2 4 3 1 3 33 7 3 6 4 4 4 4

7 1 0 1 42 0

9 2

1 8

33

7

22

1 84 4

1 0 0

2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 Nov 2 0 0 8

Lev el 1 Lev el 2 No v o Mer cad o

H o m e Br o k e r Ev o l u t i o n


60/65

6 0

N e w Li st i n g s Tu r n o v e r


61/65

6 1

2 0 0 5

2 0 0 6

Tota l

2 0 0 4

2 0 0 7

ADTV of Sep 0 8

R$ m i l l io n s

Annua l i zedTu r n o v e r ( Av g .

Mark e t Cap)

9 6 %

1 2 4 %

11 3 %

1 2 8 %

1 4 2 . 6

8 5 . 7

9 1 . 6

4 11 . 7

I POs

2 0 0 8 7 0 %3 4 . 8

2 0 0 4 - 2 0 0 8 7 8 2 11 5 %

A DTV Ev o l u t i o n R$ b i l l io n s


62/65

6 2

2.2

2.7

2.2

2.5

3.0

2.2

1.8

2.2 2.1

2.5

2.93.2 3.1

4.2

3.5

4.24.0

5.3

4.8

5.4

4.7

6.7 6.8

6.36.0 6.1

5.6

6.2

7.0

6.3

5.6

4.8

5.5

5.3

3,8

4,2

j a n / 0 6

f e v / 0 6

m a r / 0 6

a b r / 0 6

m a i / 0 6

j u n / 0 6

j u l / 0 6

a g o / 0 6

s e t / 0 6

o u t / 0 6

n o v / 0 6

d e z / 0 6

j a n / 0 7

f e v / 0 7

m a r / 0 7

a b r / 0 7

m a i / 0 7

j u n / 0 7

j u l / 0 7

a g o / 0 7

s e t / 0 7

o u t / 0 7

n o v / 0 7

d e z / 0 7

j a n / 0 8

f e v / 0 8

m a r / 0 8

a b r / 0 8

m a i / 0 8

j u n / 0 8

j u l / 0 8

a g o / 0 8

s e t / 0 8

o u t / 0 8

n o v / 0 8

d e z / 0 8

*

* ADTV until Dec 10 th. 8 trading sessions

Bovespa s Mar k e t Sh ar e


63/65

6 3

B u y B a ck Pr o g r a m


64/65

6 4

X Th e Bo a r d a p p r o v e d t h e b u y b a c k p r o g r a m o n Se p t e m b e r, 2 4 t h

X Th e Co m p a n y i s a b l e t o b u y 3 . 5 % o f t h e f r e e - f l o a t t h a t r e p r e se n t s

7 1 . 2 m i l l io n s h a r e s, t o b e c a n ce l le d a f t e r w a r d s .

X 5 ,9 4 1 , 2 0 0 s h a r es w e r e b o u g h t b e t w e en Se p t e m b e r , 2 9 t h a n d

Oc t o b e r, 1 7 t h .

X Th e p r o g r a m w i l l co n t i n u e o n N ov e m b e r 1 3 t h .


65/65

6 5

BM& F Bo v esp a I n v est o r Rela t i on s

Si t e : w w w .b m f b o v esp a .co m .b r

Ph on e n u m b er s: 5 5 1 1 3 2 3 3 2 4 9 0 / 2 8 4 7

E - m a i l : r i @ b m f b o v e s p a . c o m . b r

bvmf presentation - december 2008

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