Investor Relations 1H20 COVID-19 Response
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Investor Relations 1H20 COVID-19 Response We continue building a stronger Mexican exchange through: • Full support to our • Operational • Operate from a • Strategic alliances employees by giving resiliency. Keeping position of strength and technology them the option to BMV’s full range from capital, liquidity platforms that allow collect up to 3 of trading, market and balance sheet us to continue months of salary in development, and perspective. strengthening the advance and offered client support financial awareness flexible payment services running • Focus on risk in Mexico. options for its SMEs 100%. management, cash providers. flow generation and • Keep executing our cost control. • Commitment to our BCP protocol for as community and long as we need to, vulnerable sectors in order to guarantee through donations to the safety of all institutions that are BMV’s employees; currently having no over 95% of us are income. working remotely. 2 04 10 16 28 34 3 • We make Mexican stock and derivatives markets work • Strong Foundation and Execution • Creating Shared Value • Top Partners 4 5 Leading to 61% 21% >75% 4%-5% * *Financial Results 1H20 6 Creating shared value We have partnered with the following institutions 7 First-Class Technology…in a First-Class Business Our technology is mostly developed in-house and our top providers support our services 8 • We are committed to legal and ethical behavior through a corporate compliance program • We developed the first sustainability index in Mexico and the second in Latin America • Green, Social and Sustainable Bond Listings • Strengthen the financial awareness in Mexico 10 Environment • BMV is part of the Sustainable Stock Exchanges Initiative and has an active role in environmental projects in order to grow Green Finance. • MEXICO2, BMV’s Carbon Exchange, which provides an electronic forum for certificates conferring the right to emit one tonne of carbon dioxide, thereby attaching a cost to pollution. • Since 2011, we incorporated the Sustainability Index and BOLSA A is part of this index. • Last year we launched BMV’s Environmental Strategy which points to 5 objectives: Emission Waste management Saving water Energy efficiency Being an neutralization example in the market 11 Social • In 2020, BMV strengthen the Stock Market and Financial awareness in Mexico through: – Exchange School – Online education. – Online lectures taught by experts in their fields. All the resources are available on our You Tube channel. – Means of communication: Blog, Podcast, website and social media. • BMV Group Foundation – BMV supports art & culture through the promotion of the creative work of mexican emerging artists • Our collaborators are the most important asset. – We constantly seek to offer the best working conditions, a career plan and trainings. BMV’s workplace culture is one where every employee feels empowered to bring their authentic self to work every day. BMV is committed to continue working towards gender equality. – In these uncertain times, we gave them the option to collect up to 3 months of salary in advance and offered flexible payment options for its SMEs providers. • Social Programs: – Volunteer program for employees – Free lectures in public and private schools 12 Governance • BMV is guided by a strong Corporate Governance, ethics and best practices. – Our board is diverse in gender and structure with 60% independent members – Measures to prevent conflicts of interest with suppliers and employees • Policies and guidelines – Electronic Document and Information Processing Policy – Regulatory and Corporate Compliance Policy – Treatment and Protection of Personal Data – Anti-corruption and money laundering policy – Policy to establish the mechanisms of good corporate governance in financial infrastructures – Guide for the prevention and identification of operations with illicit resources – Securities Operations Manual • Development of new sustainable products/services – Last june, we released the “S&P/BMV Total México ESG Index” • A strong communication campaign of business ethics and institutional values among employees – Innovation, Service, Excellence, Teamwork, Transparency, Integrity 13 Shareholder Structure Board of Directors Marcos Martínez Gavica Chairman Alberto Torrado Martínez Alfonso González Migoya Blanca A. Treviño de Vega 1 Clemente Ismael Reyes Retana Valdés Eduardo Valdés Acra Fernando Ruíz Sahagún Francisco Gil Díaz Tania Ortiz Mena López Negrete 8 6 Carlos Hank González Eduardo Osuna Osuna Trust Ernesto Ortega Arellano holding Héctor Blas Grisi Checa Independent control Juan Bordes Aznar Tomás Christian Ehrenberg Aldford As of June 2020 14 Shareholder Structure • Albaill Ownership • BBVA Bancomer Trust holding • Banorte control • Ve por Más • Santander México • Inbursa • J.P. Morgan 25% • Valores Mexicanos • Value • Vector 35% is held by Top 10 shareholders: 75% • Capital Group Companies Inc 9.2% • Invesco Ltd 4.3% • B3 SA 4.1% • J.P. Morgan 3.6% Free Float • Franklin Resources 3.3% • Vanguard Group Inc 2.5% • Seafarer Capital 2.4% • BMO Financial Corp 2.0% • Blackrock 2.0% • Fidelity Int. 1.6% As of June 2020 15 • Fully integrated Exchange • 125 years of experience • Diversified business model with 9 revenue segments • Highest segment contributes 31% of total revenues • 37% of total revenues are Market driven 16 • Equity • Education • Debt • Financial Risk Management • Green, Social and • Governance, Risk & Sustainability Bonds Compliance • ETFs (TRACsC ) • Specialist softwareC • REITs (FIBRAs) • IT structure • MLP (Fibra E) • MexiCO2 • SPAC • Development Certificates (CKDs and CERPs) 17 Diversified Revenues by Business Activity BMV Other Equity Trading Maintenance CCV fees Equity Clearing 3% 8% MexDer 13% Listing fees 6% Derivatives Trading 1% 2% Asigna 3% Derivatives Clearing SIF Icap Mexico Information 1,998 6% 15% OTC Trading Services Million pesos 1H20 Revenues 12% SIF Icap Chile OTC Trading 31% Fee Related Revenue 63% ---------------------- Indeval Market Activity Central Securities Depository Revenue 37% 1H20 Financial Results 18 1. Listing and Maintenance Revenue Mix Key Factors 4% • All instruments have a one time payment 1H20 Listings 13% 83% listing fee • Maintenance fees are paid annually after the first year of been listed • Fees are subject to the CNBV approval and Maintenance 26% 8% 14% 52% are adjusted annually by inflation. • 2020: government and other debt duration Equity Alternative Debt (Gov) Debt (Corp) 12.4 and 6.4 years, respectively. Listing Revenue Maintenance Revenue (million pesos) (million pesos) 63 152 53 147 138 136 134 134 133 138 136 128 129 128 127 125 42 33 33 27 24 19 16 11 12 12 9 9 0 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 0 Q4 2017 2018 2019 2020 2017 2018 2019 2020 As of June 30th 2020 19 As of June 30th 2020 2020 Equity Listings Local Market Global Market IPOs & Follow-Ons (million pesos) 2,221 2,332 1,779 Equities ETFs 1,150 1,097 12 1,462 7 1,215 9 923 723 1 577 2 1,124 1,182 2016 2017 2018 2019 2020 856 638 739 $55,136 $95,663 $68,358 $5,931 $25,827 As of June 30th 2020 2016 2017 2018 2019 1H20 Global Distribution • Follow-Ons of FIDEAL for 25,827 million on april 21 • North America 59% • Europe 34% • Asia 4% • South America 2% • Africa and Oceania 1% As of June 30th 2020 20 2. Equity Trading and Clearing Cash Equity Trading Revenue Key Factors (Million pesos) • Local and global (SIC) markets. 85 84 79 75 77 78 76 • Trading revenues are based on the total 71 71 74 67 67 value traded during the month. Average fee 66 63 per side 0.34 basis points • Participants must deposit margins to guarantee their trading activities. Average fee per side: 0.3 basis points 0 0 • Fees are subject to Financial Regulator’s approval and are adjusted by inflation. Q1 Q2 Q3 Q4 2017 2018 2019 2020 As of June 30th 2020 Market Mix Cash Equity Clearing Revenue (Million pesos) 71 59 61 56 48% 53 53 54 54 64% 58% 61% 51 51 50 45 45 47 36% 42% 52% 39% Q1 Q2 Q3 Q4 2019 2017 2018 Global Local *1H20 2017 2018 2019 2020 th As of June 30th 2020 As of June 30 2020 21 Operational Highlights 2010 – 2019 Daily Average Trading Value & Transactions per Year (million pesos) 17,219 18,500 15,726 500,000 16,500 14,443 14,595 14,483 13,245 14,500 12,594 12,362 12,934 400,000 12,500 9,873 10,437 411,021 10,500 379,690 353,586 300,000 8,500 292,247 6,500 277,648 200,000 4,500 79,318 197,308 2,500 34,094 45,457 155,682 100,000 500 138,801 -1,500 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 *1H20 0 Value Traded Transactions *As of June 30th 2020, Operational Highlights 2020 vs 2019 Daily Average Trading Value per Month (million pesos) 23,721 16,728 17,243 16,650 13,524 15,526 14,392 14,791 13,192 12,891 13,656 12,526 14,205 13,539 12,608 12,576 12,403 12,172 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2020 2019 th 22 As of June 30 2020, Operational Highlightss 3. Derivatives Trading and Clearing Derivate Revenue Key Factors (Mexder and Asigna in million pesos) • MexDer is the only listed derivatives 65 market in Mexico 57 55 52 54 • Futures, options and swaps platform 50 49 50 51 50 50 45 • Liquidity, transparency, clearinghouse 42 44 support and self-regulation • Average margin deposits $39.1 billion pesos. Average fee 2 basis points. Q1 Q2 Q3 Q4 2017 2018 2019 2020 As of June 30th 2020 Total Derivatives Contracts Margin Deposits (daily average traded) Futures (average in million pesos) Swaps 40,033 39,110 36,637 32,333 29,064 26,095 26,574 34,508 49,717 22,459 28,174 42,261 31,073 25,323 26,800 2016 2017 2018 2019 1H20 2016 2017 2018 2019 *1H20 As of June 30th 2020 23