BM&FBovespa post full year results

Additionally, BM&FBOVESPA is reaffirming its previously announced adjusted expense budget range for 2013 of R$560 million to R$580 million, and capital expenditure budget range of R$260 million - R$290 million for 2013 and R$170 million - R$200 million for 2014. The 2013 adjusted Opex range is equivalent to the range for 2012 as a result of the Company´s continuous efforts on cost control.

Main highlights for 4Q12 and 2012 results:

• Adjusted expenses were R$174.2 million, up 6.3% compared to 4Q11. For the full year, adjusted expenses declined 3.6% as a result of the Company´s cost reduction efforts;
• Adjusted net income[2] totaled R$379.4 million, increasing 7.6% over 4Q11 as operating income growth was partially offset by a reduction in financial income;
• Adjusted earnings per share rose 7.4%, to R$0.20;
• Average Daily Trading Value (ADTV) for the Bovespa segment reached an all-time-high of R$7.3 billion in 2012, an increase of 11.7% over the previous year. For 4Q12, ADTV reached R$7.0 billion, up 9.4% compared to 4Q11;
• Average Daily Volume (ADV) for the BM&F segment grew 15.4% over 4Q11 and average RPC in the BM&F segment increased 4.1% year-over-year. For 2012, ADV reached a new annual record of 2.9 million contracts, a 7.3% increase from 2011 and average RPC grew 7.7% over 2011, which intensified the revenue generated in this segment;
• ADTV of Exchange Traded Funds (ETFs) was up 61.9% year-over-year. Average assets under custody of Tesouro Direto rose by 38.6% compared to 4Q11 and Real Estate Investment Funds (FII) ADTV had an excellent performance increasing to R$29.0 million in 4Q12 from R$4.6 million in 4Q11;
• Recommendation of R$388.7 million in dividends in 4Q12, amounting to R$1,074.3 million in 2012, which represent 100% of 2012 GAAP net income.

"The year 2012 was a very good for BM&FBOVESPA. Despite the slower growth of the Brazilian economy, we delivered significant increase in revenue as a result of record annual volumes in both the equities and derivatives segments," said BM&FBOVESPA Chief Executive Officer Edemir Pinto. "For 2013, we will continue the transition of our IT infrastructure into a state-of-the-art platform through some strategic projects, including the implementation of the equities segment on the PUMA Trading System, the deployment of the first phase of the new integrated clearing house, the new OTC derivatives and fixed income platforms and the construction of our new data center. These projects will either be launched or tested over the coming year. Overall, these initiatives support our strategy to grow and diversify our business, while also bringing greater efficiency to market participants and investors. Coupled with our focus on clients and product enhancements, we believe these actions will further solidify our competitive position," concluded Mr. Pinto.

Chief Financial, Corporate Affairs and Investor Relations Officer, Eduardo Refinetti Guardia, said: "Strong top-line growth coupled with disciplined expense management resulted in solid operating performance in 2012. In order to maximize shareholder return, the Board of Directors approved a 100% dividend payout. For 2013, we will maintain our keen focus on cost controls to deliver greater operational leverage and further enhance shareholder value".

[1]Expenses adjusted to Company´s depreciation, stock options plan costs, tax on dividends from the CME Group, provisions and contribution to MRP (Investor Compensation Mechanism Fund).
[1]Net income adjusted to eliminate deferred liability recognized in correlation with temporary differences from amortization of goodwill for tax purposes, the impact of the stock options plan, the investment in associates (CME Group) accounted for under the equity method net of taxes, taxes paid overseas to be compensated, contribution to MRP in 4Q11 and provision related to health care insurance net of taxes in 4Q12.