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B3 S A Brasil Bolsa Balco : Institutional Presentation | #riskmanagement | #security | #ceo | #businesssecurity | #

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06/01/2020 | 04:16am EDT

Investor Relations

Institutional presentation – 1Q20

INFORMAÇÃO PÚBLICA – PUBLIC INFORMATION

Forward Looking Statements

This presentation may contain certain statements that express the management’s expectations, beliefs and assumptions about future events or results. Such statements are not historical fact, being based on currently available competitive, financial and economic data, and on current projections about the industries B3 works in.

The verbs “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “plan,” “predict,” “project,” “target” and other similar verbs are intended to identify these forward-looking statements, which involve risks and uncertainties that could cause actual results to differ materially from those projected in this presentation and do not guarantee any future B3 performance.

The factors that might affect performance include, but are not limited to: (i) market acceptance of B3 services; (ii) volatility related to (a) the Brazilian economy and securities markets and (b) the highly-competitive industries in which B3 operates; (iii) changes in (a) domestic and foreign legislation and taxation and (b) government policies related to the financial and securities markets; (iv) increasing competition from new entrants to the Brazilian markets; (v) ability to keep up with rapid changes in technological environment, including the implementation of enhanced functionality demanded by B3 customers; (vi) ability to maintain an ongoing process for introducing competitive new products and services, while maintaining the competitiveness of existing ones; (vii) ability to attract new customers in domestic and foreign jurisdictions; (viii) ability to expand the offer of B3 products in foreign jurisdictions.

All forward-looking statements in this presentation are based on information and data available as of the date they were made, and B3 undertakes no obligation to update them in light of new information or future development.

This presentation does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities where such offer or sale would be unlawful prior to registration or qualification under the securities law. No offering shall be made except by means of a prospectus meeting the requirements of the Brazilian Securities Commission CVM Instruction 400 of 2003, as amended.

INFORMAÇÃO PÚBLICA – PUBLIC INFORMATION

B3 – Brasil, Bolsa, Balcão

Agenda

B3: Where we come from and highlights

Complete multi-asset and vertically integrated model: highly critical to users

Operational excellence, product development, innovation and focus on the client: long-term drivers of value

Solid financial profile and commitment to returning cash to shareholders

INFORMAÇÃO PÚBLICA – PUBLIC INFORMATION

B3 – Brasil, Bolsa, Balcão

The infrastructure that develops the market

1890

2007

2008

2010

Mar/17

Bolsa Livre

Demutualization and

Demutualization of

Acquisition of GRV by

Merger approval and

(BOVESPA’s

IPOs of BOVESPA

Cetip

Cetip

creation of B3

predecessor) is

founded

and BM&F

1984

1986

2008

2009

May/16

Beginning of

Beginning of

BM&F and BOVESPA

Cetip’s IPO

Agreement between

Cetip’s

BM&F

merger – creation of

BM&FBOVESPA and

activities

activities

BM&FBOVESPA

Cetip (shareholders’

approval)

INFORMAÇÃO PÚBLICA – PUBLIC INFORMATION

in 10 years

B3 – Brasil, Bolsa, Balcão

The infrastructure that develops the market

Diversified and vertically integrated model

Single infrastructure integrated to the

financial system

Broadly held corporation with solid governance

R$80 billion in market capitalization¹

Revenue of R$6.6 billion in 2019

More than R$12.0 billion distributed to shareholders

¹ Updated as of May 14, 2020.

5

PUBLIC INFORMATION

INFORMAÇÃO PÚBLICA – PUBLIC INFORMATION

B3 – Brasil, Bolsa, Balcão

Agenda

B3: Where we come from and highlights

Complete multi-asset and vertically integrated model: highly critical to users

Operational excellence, product development, innovation and focus on the client: long-term drivers of value

Solid financial profile and commitment to returning cash to shareholders

INFORMAÇÃO PÚBLICA – PUBLIC INFORMATION

B3 – Diversified Business Model

Diversity of products and services and exposure to different market dynamics

Main services

Drivers and dynamics

Equity

Listing

Trading, clearing (CCP²), settlement

(SSS³) and depository (CSD4)

LISTED

Securities lending

FICC

Trading, clearing (CCP), settlement

(SSS)

Perspectives for the economy

Interest rate and FX volatility

Interest rate level

Number of issuers and investors

Risk appetite

Investors sophistication

Credit outstanding

International transactions (capital raising and trade)

Listed – equity

Listed – FICC¹

OTC

Infrastructure for financing

Technology, data and services

Trade repository (with or without CCP)

Credit growth

OTC

Volatility

Central depository (CSD) and custody

Interest rate level

INFRASTRUCTURE

Liens registration and controls

Vehicle sales

Repository and transmission of

Credit penetration

FOR FINANCING

information on loans

Process eletronification

TECHNOLOGY,

Platforms, connections, access and IT

Number of clients and services

DATA AND

services (all segments)

Market sophistication

SERVICES

Data and analytics (all segments)

Demand for new data and analytics solutions

¹ FICC – Fixed Income, Currency and Commodities. ²CCP – Central Counterparty. ³ SSS – Securities Settlement System. 4 CSD – Central Securities Depository,

7

PUBLIC INFORMATION

INFORMAÇÃO PÚBLICA – PUBLIC INFORMATION

Listed Market – Equity

Exposure to the economic cycle, interest rate and sophistication and risk appetite of investors

Revenue breakdown

(2019)

Cash – post-trading

Derivatives – trading and post-trading

Equity CSD

Securities lending

Listing and solutions for issuers

Other segments

Cash equity and derivatives on single stocks

ADTV (R$ bn)

Investors participation (2019)

Main price dynamics

Basis points (bps)

Discounts by volume (day traders and total value traded)

Main price dynamics

R$ per contract (RPC)

Discounts by volume

Listing, depository and securities lending

Issuers (end of period)

Investors (end of period; thousand)

Sec. Lending (average open positions; R$ bn)

PUBLIC INFORMATION

¹ As of 2016 the Mini contracts volumes were weighted in its respective standard contracts.

8

INFORMAÇÃO PÚBLICA – PUBLIC INFORMATION

Listed Market – FICC (Interest Rates, FX and Commodi ties)

Exposure to volatility, market sophistication and risk appetite of investors

Revenue breakdown

Interest rates in BRL

(2019)

ADV (thousand)

Investors participation (2019)

Main price dynamics

R$ per contract (RPC)

Price differentiation according

to the contracts’ maturity

Discounts by volume

Main price dynamics

US$ per contract (RPC)

Price differentiation according to the contracts’ maturity

Discounts by volume

Derivatives – Interest rates in USD

FX rates

Derivatives – FX rates

Main price dynamics

Derivatives – Commodities

US$ per contract (RPC)

FX spot

Discounts by volume

Other segments

PUBLIC INFORMATION

¹ As of 2016 the Mini contracts volumes were weighted in its respective standard contracts.

9

INFORMAÇÃO PÚBLICA – PUBLIC INFORMATION

OTC Market

Exposure to the local debt market development and market sophistication

Revenue breakdown

Fixed income instruments and other

(2019)

Bank funding (average stock; R$ bn)

Corporate bonds (average stock; R$ bn)

Investment funds quota (average stock; R$ bn)

Main price dynamics

  • Basis points (bps) on the initial registration (bank funding instruments)
  • Basis points (bps) on the outstanding volume
  • R$ per transaction (except Treasury Direct)
  • Incentive programs for brokers (Treasury Direct)
  • Discounts by volume

Derivatives

OTC derivatives

Other

Derivatives (average stock; R$ bn)

Structured Notes (average stock; R$ bn)

Main price dynamics

Other segments

Basis points (bps) on the initial

registration and outstanding volume

R$ per transaction

Cap according to the size of the

transaction

Discounts by volume

INFORMAÇÃO PÚBLICA – PUBLIC INFORMATION

Infrastructure for Financing

Exposure to credit and economy growth

Revenue breakdown

National Liens System- SNG

(2019)

Number of vehicles sold (MM)

Number of vehicles financed (MM)

Price dynamics

R$ per lien

Discounts by volume

Revenue-linked expenses

Price dynamics

R$ per contract transmitted Discounts by volume

Revenue-linked expenses

Contracts Sytems

Other

Other segments

Real estate platform

  • Assessment of collaterals (integration between financial institutions and appraisers)
  • Connection to notary offices (registration collaterals – real estate)
  • Connection to the regulator (compliance with regulatory obligations)

INFORMAÇÃO PÚBLICA – PUBLIC INFORMATION

Technology, data and services

Business diversification – data, analytics and other services for financial markets

Revenue breakdown

(2019)

Data and Analytics

Bank B3

Other

Other segments

Technology and access

Average number of clients¹ (thousand)

# electronic cash transfers (thousand)

Other services

Sinacor: mid and back office system for brokerage houses

Trading screens for buy side and sell side

Server Hosting (co-location)

analytics

for the infrastructure for financing segment

segments

Bank B3

  • Settlement bank
  • Back-officeservices for investment funds
  • Custody and representation for non-resident investors
  • Depositary institution of BDRs – Brazilian Depositary Receipts

PUBLIC INFORMATION

¹ Only those participants who pay monthly utilization fees in the OTC market.

12

INFORMAÇÃO PÚBLICA – PUBLIC INFORMATION

Growth Drivers – Equity and Debt Capital Markets Act ivity

The capital market’s relevance shall continue to grow

Capital raised in the Brazilian market

BNDES disbursements

(R$ bn)

(R$ bn)

Outstanding banking credit for corporates

(R$ tn)

Source: BACEN

Source: Anbima

PUBLIC INFORMATION

*Source: BNDES – *Updated as of 10/2019

13

INFORMAÇÃO PÚBLICA – PUBLIC INFORMATION

Growth Drivers- Investors Allocation

Interest rate decline – demand for diversification and greater risk exposure

Institutional investors

Individuals

Investment funds (End of period; R$ bn)

Number of Investors (End of period; thousand)

Pension funds (End of period; R$ bn)

Investment Allocation (End of period; R$ bn)

* Updated until 10/2019

PUBLIC INFORMATION

Sources: Anbima, ABRAPP and B3

14

*Updated as of 10/2019

INFORMAÇÃO PÚBLICA – PUBLIC INFORMATION

B3 – Brasil, Bolsa, Balcão

Agenda

B3: Where we come from and highlights

Complete multi-asset and vertically integrated model: highly critical to users

Operational excellence, product development, innovation and focus on the client: long-term drivers of value

Solid financial profile and commitment to returning cash to shareholders

INFORMAÇÃO PÚBLICA – PUBLIC INFORMATION

IT Infrastructure investments

Ensuring the smooth functioning of markets

R$2.1 billion invested in the last 7 years

Operational excellence and high-quality services are important competitive advantages

Combined investment

(R$ millions; Combined information)

Main infrastructure projects deployed over recent years

(2013-2019)

  • PUMA Trading System: low-latency and high-capacity multi- asset and multi-market trading platform
  • B3 Clearinghouse: single infrastructure and risk / margin model for derivatives (listed and OTC) and equities
  • New Data Center: scale to comprise own structure and client’s (co-location)
  • Upgrades on IT infrastructure
  • Relocation and consolidation of Data Centers
  • Register platform for the Real Estate market
  • Upgrades on trading infrastructure – PUMA (DR site)
  • Market Data
  • RLP – Retail Liquidity Provider

(2020 Budget)

  • Renovation of corporate facilities
  • Technological Updates
  • Product Development

INFORMAÇÃO PÚBLICA – PUBLIC INFORMATION

Products Development

Portfolio expansion; roadmap of developments aligned with clients

Segments

Drivers

Examples

Trading screen for securities lending

Enhancements to existing products

Single-stocks futures

New execution functionalities

New order types in the trading system

Risk management and operational efficiency

Settlement cycle in T+2 and pre-trading risk controls

Regulatory-driven adjustments

Fixed income ETFs

Currency and equity-based indices futures and BDRs

Covered bonds (LIG)

Risk management and operational efficiency

Registration of receivables

Fixed income trading system

Regulatory-driven adjustments

OTC derivatives and structured notes (functionalities, services and

products)

INFRASTRUCTURE FOR FINANCING

  • Services in the vehicles financing value chain
  • Real estate platform

Acquisition of Portal de Documentos Enhancements to the Real Estate platform

TECHNOLOGY, DATA AND SERVICES

  • Adding more value to data
  • New analytic solutions

DATAWISE and UP2DATA iMercado

KYC services (surveillance)

Analytics and services for the credit origination

INFORMAÇÃO PÚBLICA – PUBLIC INFORMATION

B3 – Brasil, Bolsa, Balcão

Agenda

B3: Where we come from and highlights

Complete multi-asset and vertically integrated model: highly critical to users

Operational excellence, product development, innovation and focus on the client: long-term drivers of value

Solid financial profile and commitment to returning cash to shareholders

INFORMAÇÃO PÚBLICA – PUBLIC INFORMATION

Financial robustness

Summary of income statement¹

Net revenues

Adj. expenses²

Adj. EBITDA³

Recurr. net income

(R$ MM; % of change)

(R$ MM; % of change)

(R$ MM; % of change)

(R$ MM; % of change)

+166.5%

+51.7%

+77.9%

Revenue growth,

Expenses growth

Strong cash

Return of major

despite macro crisis

below inflation

generation

part of earnings

in Brazil

to shareholders

PUBLIC INFORMATION

¹ Combined managerial information. ² Adjusted to (i) depreciation and amortization; (ii) long-termstock-based compensation (principal + payroll taxes); (iii) integration-related expenses; (iv)

19

revenue-linked expenses; and (iv) provisions. ³ Adjusted to: (i) integration-related expenses (ii) non-recurring provisions and (iii) other non-recurring items.

INFORMAÇÃO PÚBLICA – PUBLIC INFORMATION

Focus on expense control

Historical adjusted expenses¹

(Combined information; R$ MM)

2019 adjusted expenses breakdown

(Combined information)

¹Expenses adjusted to: (i) depreciation and amortization; (ii) long-termstock-based compensation (principal + payroll taxes); (iii) expenses connected to the business combination with Cetip;

20

(iv) revenue-linked expenses; and (v) provisions (Source: IBGE).INFORMAÇÃO PÚBLICA – PUBLIC INFORMATION

INFORMAÇÃO PÚBLICA – PUBLIC INFORMATION

Management & Board of Directors

Board of Directors

Board of Directors

Audit committee

Corporate governance and Nomination committee

Product & pricing committee

Personnel and Compensation committee

Risk and financial committee

Current BD composition

Antonio Quintella (Chairperson)

Former CEO of Credit Suisse Brasil and Americas; founder of Canvas Asset Management

Ana Carla Abrão Costa (Vice-Chairperson)

Partner and Market Leader Latin America for Oliver Wyman Consulting

Edgar da Silva Ramos

Partner of brokerage houses and former Chairman of Cetip

Florian Bartunek

Partner and CIO at Constellation Asset Management

Guilherme Affonso Ferreira

Founder and Partner of Teorema Asset Management

José Lucas Ferreira de Melo

Former VP of Unibanco, Former auditor of PWC, Former Director of Cetip

Claudia Farkouh Prado

Senior Member of the Board of Directors of Baker McKenzie Global Law Firm

Maurício Machado de Minas

Member of the board Banco Bradesco and IBM corporation

Eduardo Mazzilli de Vassimon

Former C-level executive of Itaú

José Berenguer Neto

CEO of JP Morgan Brazil

José Roberto Machado Filho

C- level Executive of Santander and Former Director of Cetip

Independent members

Linked to

market participant

INFORMAÇÃO PÚBLICA – PUBLIC INFORMATION

Management & Board of Directors

Executive Board

Chief Executive Officer

GILSON FINKELSZTAIN

Chief Operating Officer

Chief Financial Officer

Chief Product and

Chief Technology

Client Officer

Officer

CÍCERO

DANIEL

JUCA

RODRIGO

VIEIRA

SONDER

ANDRADE

NARDONI

Executive Director of

the Financing Unit

MARCOS

FERREIRA

INFORMAÇÃO PÚBLICA – PUBLIC INFORMATION

Corporate governance and ownership structure

Broadly-held Corporation with solid corporate governance structure

Sound corporate governance practices

Listed at Novo Mercado (voting shares only and other shareholders’ rights, transparency, etc.)

Board of Directors:

  • Majority independent, including the chairman (regulatory requirement)
  • Other Board members are linked to market participants (not connected to controlling group or management)
  • Board of Directors and its Committees have clearly-defined activities

Management compensation aligned with Company’s performance and strategic objectives, as well as with shareholders’ long-term interests

Solid risk management and internal control structures and policies

INFORMAÇÃO PÚBLICA – PUBLIC INFORMATION

B3’s Clearinghouses Safeguard Structures

Robustness that assures market integrity

B3 S.A – Brasil, Bolsa, Balcao Clearing Risk Metrics

Clearinghouses

B3 (derivatives and equities)

# of clearing members (CM)

69

Margins

Total margins deposited (R$ bn)

312.02

Confidence level (%)

99.96%

At risk / close-out period

Futures contracts 2-10 days; listed options 5 days; OTC derivatives 10 days; cash equity,

forwards and securities lending 2-10 days

Cash BRL, Brazilian government bonds, gold, stocks and publicly traded share (unit)

Type of collateral eligeble for margins

certificates traded on B3, Brazilian deposit receipts (BDR) , banks LC and CD, bank letter of

guarantee, ETF, shares in selected funds1

Margining system

CORE – CloseOut Risk Evaluation

Margin calculation level

Calculates margin at the investor level (individuals who hold positions directly or funds). The

clearing member’s house position is deemed as an additional single client portfolio

¹ Non-resident principals are also allowed to deposit as collateral: US dollar, ADR, US Treasury securities and German Treasury securities. For non-resident principals

25

PUBLIC INFORMATION under Resolution 2,687, the only assets eligible for collateral are US dollars and US Treasury securities.

INFORMAÇÃO PÚBLICA – PUBLIC INFORMATION

B3’s Clearinghouses Safeguard Structures (Cont’d)

Robustness that assures market integrity

B3 S.A – Brasil, Bolsa, Balcao Clearing Risk Metrics

Clearinghouses

B3 (derivatives and equities)

Clearing funds (CF)

The Clearing Fund, which is part of the safeguard structure, is composed by variable

contributions made by clearing members, (proportional to risk exposure) and fixed

General approach for calibrating the size of the

contribution made by B3. The BM&FBOVESPA Board conducts credit stress tests to assess

guaranty funds

the level of protection of the safeguards structure, which should be at least sufficient to cover

the 2 largest exposures.

1) defaulting customer guarantees: linked to the defaulting broker and MC; (2) defaults from

the defaulting customer linked to other brokers and / or other MCs, upon their authorization;

(3) guarantees from the defaulting broker linked to the defaulting MC, including the minimum

Waterfall order

non-operating guarantee; (4) guarantees from the defaulting MC; (5) defaulting MC’s

contribution to the settlement fund; (6) B3’s contribution to the settlement fund; (7)

contribution from other defaulting MCs to the settlement fund; and (8) B3 housing

exclusively dedicated to the chamber.

The total amount of contributions made by the participant for reconstitution of the fund in any

period of 20 working days is limited to 3 times the amount of the individual contribution

Default fund replenishment following a default

requested by the participant. If the contributions of the defaulting participants are used, the

contributions made to replenish them may not be used to cover losses arising from or prior

to the default in question.

Default experience

None

PUBLIC INFORMATION B3 also owns and manages the Clearing House whose required guarantees represents only 0.13% of the total guarantees required by the BM&FBOVESPA Clearinghouse.

26

As Of August, 2019

INFORMAÇÃO PÚBLICA – PUBLIC INFORMATION

B3 – Goodwill from the business combination of BM&F and Bovespa

Status of the ongoing discussions

Tax year

(notices received)

2008-2009

(11/29/2010)

2010-2011

(04/02/2015)

2012-2013

(09/21/2017)

2014-2016

(10/18/2019)

Notional amount under

discussion

(R$ bn – includes fines and interest)

R$1.3 billion

R$2.7 billion

R$3.3 billion

R$4.2 billion

DRJ

(local IRS)

10/21/2011

(partial impugnation)

04/27/2016

(partial impugnation)

08/03/2018

(partial impugnation)

Administrative level

CARF

(IRS appeal – lower

chamber)

05/09/2014

(3×3 votes)

06/21/2017

(5×3 votes)

10/16/2019

(7×1 votes)

CARF

(IRS appeal – higher

chamber)

04/05/2017

(4×4 votes)

09/11/2019

(5×5 votes)

Judiciary

(three levels)

05/18/2020

(1st instance)

(Unfavorable Decision)*

INFORMAÇÃO PÚBLICA – PUBLIC INFORMATION

Listed – Equities

ADTV1

Stock indices futures – ADV and RPC

Average annual market cap and Turnover Velocity2

Investor Participation in volumes¹

¹ Includes: cash and derivatives (options and forward) on equities. 2 Ratio of cash equities trading volume in the period to the average overall market capitalization in the same period.

29

PUBLIC INFORMATION

INFORMAÇÃO PÚBLICA – PUBLIC INFORMATION

Listed – FICC

Average Daily Traded Volume – ADV

Revenue Per Contract – RPC

(Thousand of contracts)

(BRL)

Investor Participation in volumes1

Open Interest of derivatives contracts2

¹ Considers mini-contracts2As of 2016 it does not consider OTC volume and starting from Jan/17, Mini contracts were weighted in its respective standard contracts: Equities, FX

30

PUBLIC INFORMATION

and Commodities.

INFORMAÇÃO PÚBLICA – PUBLIC INFORMATION

OTC

Fixed Income – Volume

(BRL trillion)

Others – Volume

(BRL trillion)

Derivatives – Volume

(BRL trillion)

Treasury Direct

INFORMAÇÃO PÚBLICA – PUBLIC INFORMATION

Infrastructure for Financing and Technology, Data and Services

Infrastructure for Financing

0.0%

0.0%

5.0%

56.6%

68.2%

65.4%

59.7%

66.5%

70.8%

73.6%

71,4%

62.7%

58.8%

XX%

Contracts System’s market-share

Technology, Data and Services

Number of cash transfers (TED) processed (thousand)

Average number of participants in OTC Market (thousand)

INFORMAÇÃO PÚBLICA – PUBLIC INFORMATION

Trading in ADRs of Brazilian companies

End of CPMF

Novo Mercado

(Financial

Transaction Tax)

End of IOF Tax (2%) for

Launch

foreign investors

(Dec. 2000)

Sarbanes-Oxley Act

(Dec. 2011)

(Jul. 2002)

Dec’18 20.9%

15.9%

5.0%

79.1 %

35.7%

43.4%

Source: Bloomberg (in USD traded value of brazilian companies with ADRs programs level 2 and 3)

INFORMAÇÃO PÚBLICA – PUBLIC INFORMATION

B3 – New pricing policies for the cash equities mark et

Pricing tables were announced on jan-20 and will be implemented throughout the year

Base-price* of trading and post-trading in the cash equities market

TODAY

Current Rates (bps)

Local

Other

Institucional

investors

Investors

Trading

0.50

0.50

Post-Trading

2.00

2.75

(CCP e CSD)

Total

2.50

3.25

NEW POLICIES

Announced Rates (bps)

All of the investors

Trading0.60

CCP2.14

TTA0.26

TODAY

Up to R$9.28/month

Custody account

for residents

maintenance fee

R$115.83/month for

non-residents

Value in custody fee

Progressive table

Fee for processing

Zero

financial earnings

NEW POLICIES

Zero

New Progresive table

0.12% of payout

(cap of R$ 5,000/payout)

  • Lower Rates for local funds
  • Progressive discount for all investors based on the total Market ADTV in the previous month
  • Unified post-trading tariffs
  • Equalized rates for all
  • Progressive discount based on the consolidated ADTV per final user, which can be gathered into a master account, with a deeper table: easier to achieve bigger discounts
  • Segmentation in clearing (CCP) and Depositary (TTA) rates**
  • Account maintenance fee in custody for locals and foreigners
  • Fee on the value in custody charged from a progressive table, with exemption for individuals with investments of up to R$300 thousand and foreign investors
  • End of monthly custody account maintenance fee
  • Fee on the amount in custody charged from a new progressive table, with exemption for investments of up to R$20 thousand
  • New fees on the processing of earnings, with a cap of R$5,000 and exemption for individual with applications of up to R$20 thousand

Other changes:

New table of additional discounts for day trade operations and introduction of the incentive program for large day traders

New fee for the process of withdrawing assets from the depository: 0.67% of the withdrawn asset’s value.

*Before the volume discount is applied

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** not valid to day trade

INFORMAÇÃO PÚBLICA – PUBLIC INFORMATION

B3 – New pricing policies for the cash equities mark et

Pricing tables were announced on jan-20 and will be implemented throughout the year

Progressive table of trading and CCP tariffs (Non-day Trade)

Monthly ADTV(R$)

Trading

CCP

TTA

Total

From

To

tariff

tariff

(year 1)*

From

To

0.01

100.000,00

0.600

2.140

3.00

100,000.01

200.000,00

0.583

2.077

3.00

2.96

200,000.01

1.000.000,00

0.567

2.023

2.96

2.87

1,000,000.01

20.000.000,00

0.534

1.906

2.87

2.71

20,000,000.01

150.000.000,00

0.468

1.672

2.71

2.44

150,000,000.01

600.000.000,00

0.403

1.437

0.26

2.44

2.19

600,000,000.01

1.000.000.000,00

0.359

1.281

2.19

2.07

1,000,000,000.01

2.000.000.000,00

0.337

1.203

2.07

1.94

2,000,000,000.01

3.000.000.000,00

0.294

1.046

1.94

1.82

3,000,000,000.01

4.000.000.000,00

0.261

0.929

1.82

1.73

Acima de 4,000,000,000.00

0.217

0.773

1.73

Reduction table for day-trade operations

*The value of the TTA will be determined, for each year, based on the global ADTV of non-day trade operations of the previous year:

Global ADTV

TTA

(R$ Bn)

(bps)

From

To

0

12

0.260

12

16

0.225

16

20

0.190

20

24

0.170

24

28

0.140

Over 28

0.135

Progressive Rate Table on the value in custody fee

Table of incentive program for large day traders

To participate in the program, the investor must formally request B3 to be included, via the customer service system

The investor’s approval and maintenance in the program is subject to compliance with minimum requirements:

Maintain an ADTV of at least R$100 million

At least 90% in day trade operations

If the investor fails to comply with the minimum ADTV requirement while enrolled in the Program, he will not have access to the differentiated table

INFORMAÇÃO PÚBLICA – PUBLIC INFORMATION

1Q20 EARNINGS PRESENTATION

May 14th, 2020

PUBLIC INFORMATION

INFORMAÇÃO PÚBLICA – PUBLIC INFORMATION

Forward looking statements

This presentation may contain certain statements that express the management’s expectations, beliefs and assumptions about future events or results. Such statements are not historical fact, being based on currently available competitive, financial and economic data, and on current projections about the industries B3 operates in.

The verbs “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “plan,” “predict,” “project,” “target” and other similar verbs are intended to identify these forward-looking statements, which involve risks and uncertainties that could cause actual results to differ materially from those projected in this presentation and do not guarantee any future B3 performance.

The factors that might affect performance include, but are not limited to: (i) market acceptance of B3 services; (ii) volatility related to (a) the Brazilian economy and securities markets and (b) the highly-competitive industries in which B3 operates; (iii) changes in (a) domestic and foreign legislation and taxation and (b) government policies related to the financial and securities markets; (iv) increasing competition from new entrants to the Brazilian markets; (v) ability to keep up with rapid changes in technological environment, including the implementation of enhanced functionality demanded by B3 customers; (vi) ability to maintain an ongoing process for introducing competitive new products and services, while maintaining the competitiveness of existing ones; (vii) ability to attract new customers in domestic and foreign jurisdictions; (viii) ability to expand the offer of B3 products in foreign jurisdictions.

All forward-looking statements in this presentation are based on information and data available as of the date they were made, B3 undertakes no obligation to update them in light of new information or future development.

This presentation does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities where such offer or sale would be unlawful prior to registration or qualification under the securities law. No offering shall be made except by means of a prospectus meeting the requirements of the Brazilian Securities Commission CVM Instruction 400 of 2003, as amended.

PUBLIC INFORMATION

INFORMAÇÃO PÚBLICA – PUBLIC INFORMATION

1Q20 Highlights – Operational Performance

1Q20

1Q20 / 1Q19

(%)

Listed – Equities

ADTV (R$ millions)

27,863.8

72.2%

Equities

Margin (bps)

4.119

-0.293 bps

ADV (thousands of contracts)

2,175.8

70.3%

Stock Indices

Average RPC (R$)

1.120

31.0%

ADV total (thousands of contracts)

4,958.3

57.8%

Listed – Derivatives

Average RPC (R$)

1.446

-15.4%

OTC

New issues (R$ bn)

2,583.7

21.8%

Fixed Income

Outstanding volume (R$ bn)

2,035.8

4.1%

New transactions (R$ bn)

3,991.0

73.9%

Derivatives

Outstanding volume (R$ bn)

3,432.7

44.2%

PUBLIC INFORMATION

INFORMAÇÃO PÚBLICA – PUBLIC INFORMATION

1Q20 Highlights – Financial Performance

1Q20 / 1Q19

Listed

1,506.8

57.7%

OTC

245.5

2.0%

Infrastructure for financing

104.3

-31.5%

Technology, data and services

270.0

46.6%

Net revenue

1,905.2

38.2%

Adjusted expenses1

(273.8)

18.2%

Recurring EBITDA1

1,569.3

61.6%

Recurring EBITDA margin1

82.4%

+ 1.193 bps

Financial Result

(112.2)

Recurring net income2

1,156.6

57.0%

¹ See reconciliation at the appendix on slide 15. 2 See reconciliation on slide 16.

PUBLIC INFORMATION

INFORMAÇÃO PÚBLICA – PUBLIC INFORMATION

Performance by segment

Listed – equities (50% of total revenues)

Revenue (R$ million)

Performance (vs 1Q19): +67%

ADV of stock indices future contracts with 70% growth

Growth of 116% in the number of clients’ accounts in the equity depository (incentives for brokerage firms reached R$28.7 million in 1Q20)

Revenue from Listing and services for issuers positively impacted by the activity in the local capital markets (4 IPOs and 5 follow-ons)

INFORMAÇÃO PÚBLICA – PUBLIC INFORMATION

Performance by segment

Listed – equities

Equities Depository Breakdown

Avg. (R$bn)

  • Individuals balance on the equities depository have continued to increase in the 1Q20
  • Although foreign investores have lowered their representativeness, they are still 41% of the total in

Investor’s participation on

PUBLIC INFORMATION

INFORMAÇÃO PÚBLICA – PUBLIC INFORMATION

Performance by segment

Listed – FICC (21% of total revenues)

Revenue (R$ million)

Performance (vs 1Q19): +39%

Interest rates in BRL

Growth in the ADV partially offset by lower RPC (concentration in short-term contracts and more options contracts)

FX related contracts1

Growth in the ADV driven by the increase in Mini FX rate contracts along with the appreciation of the USD

¹ The average RPC of FX Rate and Interest Rate in USD contracts in 4Q19 takes into account the average PTAX closing price at the end of Sep’19, Oct’19 and Nov’19 (R$4.15), while the

PUBLIC INFORMATION

average RPC for 4Q18 takes into account the average PTAX closing price at the end of Sep’18, Oct’18 and Nov’18 (R$ 3.86).

INFORMAÇÃO PÚBLICA – PUBLIC INFORMATION

Performance by segment

OTC (12% of total revenues)

Revenue (R$ million)

Performance (vs 1Q19): +2%

Fixed Income

Treasury Direct: revenue of R$ 40.1 million (vs R$ 20.3 million in 1Q19) Incentives in the expansion program are now classified as expenses

Increase in issuances of corporate debt offset by redemption of debentures issued by leasing companies¹

Derivatives

Increase in the financial volume and growth in outstanding volume, mainly in FX forward and swaps contracts

¹ In Oct’16, the Central Bank published a resolution prohibiting the execution, extension and renewal of REPOS with securities issued by companies linked to the same financial

PUBLIC INFORMATION

conglomerate, including debentures issued by leasing companies.

INFORMAÇÃO PÚBLICA – PUBLIC INFORMATION

Performance by segment

Infrastructure for financing (5% of total revenues)

Revenue (R$ million)

4

Revenue-linked expenses¹

Performance (vs 1Q19): -31%

  • National Liens System (SNG)
    • 1% growth in the number of financed vehicles
  • Contracts System
    • New model implemented in some states, in which the cost of the registering company is no longer included in the fees charged by B3 (lower revenue and lower revenue-linked expense), with a reduction in the net result to B3
  • Others
    • Positive impact from the acquisition of Portal de Documentos

¹ Considers only the revenue-linked expenses related to the Infrastructure for financing segment.

PUBLIC INFORMATION

INFORMAÇÃO PÚBLICA – PUBLIC INFORMATION

Performance by segment

Technology, data and services (13% of total revenues)

Revenue (R$ million)

Performance (vs 1T19): +47%

Technology and access

Increase in the number of clients in the OTC segment and addition of BLK revenues

Data and analytics

Positive impact from the appreciation of the US Dollar against the Real (approx. 47% of this revenue is linked to the US Dollar)

INFORMAÇÃO PÚBLICA – PUBLIC INFORMATION

Adjusted expenses1

(R$ million)

Data processing:

Third-party services

Others³

Adjusted personnel²

(+66.7%)

(+0.7%)

(-5.8%)

Intensification of

(+13.0%): reflecting

projects and new

new hires,

ones

consolidation of BLK

and Portal de

Documentos and the

annual inflation

adjustment1 to wages

+18.2

%

(in R$ million and % of

Adjusted

Data

Third-party

Others

total adjusted expenses)

personnel

processing

services

1Q20

169.0 (60.9%)

60.9 (22.3%)

15.8 (5.8%)

28.1 (10.2%)

1Q19

149.5 (64.6%)

36.5 (15.8%)

15.7 (6.8%)

29.8 (12.9%)

¹ Adjusted to exclude (i) depreciation and amortization; (ii) long-termstock-based compensation (principal + payroll taxes); (iii) integration-related expenses; (iv) provisions and (v) revenue-

PUBLIC INFORMATION linked expenses. ² Excludes the long-termstock-based compensation (principal + payroll taxes). 3 Includes expenses with communication, maintenance, taxes, board and committee

members compensation and others.

INFORMAÇÃO PÚBLICA – PUBLIC INFORMATION

Financial highlights

Cash and Financial Investments1 (R$ million)

Third-party

Total

Restricted and

unrestricted

2

3

4

Financial Leverage and Debt Schedule

Debt Amortization Schedule (R$ billion) and Financial Leverage5

0.9x LTM EBITDA

B3’s cash supports clearing activities and general corporate needs. Includes R$943 million in IoC and dividends already paid in Apr’20 and May’20

Third-party cash of R$ 3.2 bn is not considered as B3’s own cash, but the Company earns interest on most of this cash balance

2020 guidance:

  • Financial leverage of up to 1.5x Gross Debt / Recurring LTM EBITDA
  • Payout ratio between 120% and 150% of IFRS net income

1 There was a change in the manner that we present the Company’s cash position and financial investments for an easier reconciliation with the financial statements 2 Includes earnings and

PUBLIC INFORMATION

rights on securities in custody. 3 Primarily composed of B3 Bank clients’ deposits. 4 Does not include investments in Bolsa de Valores Mexicana, Bolsa de Comercio de Santiago, Bolsa de

INFORMAÇÃO PÚBLICA – PUBLIC INFORMATION

Valores de Colômbia, Bolsa de Valores de Lima and B3 Inova amounting to R$370.3 million in 4Q19. 5 Total Debt is net of derivative instruments

Financial highlights

Cash generation

R$ million

1Q20

1Q19

Adjusted net cash from

operating

1,468

1,038

activities¹

Net cash from investment

35

32

activities²

Net cash from financing

activities

(91)

(84)

before distributions³

Cash generation (before

distributions, capex and

1,412

986

acquisitions)

Cash destination – 1Q20 (R$ million)

1,41

2

(51)

927

(434)

1Q20 cash

Distributions

Cash

Capex

related to the

generated

generation

fiscal year 20204

and retained

in the period

¹ Cash flow from operating activities, adjusted by the variation of financial investments and third-parties collateral. ² Cash flow from investment activities other than capex and acquisitions. ³

PUBLIC INFORMATION Cash flow from interest and amortization paid and debt issued in the period. 4Distributions include dividends, interest on capital (IoC) and share buyback.

INFORMAÇÃO PÚBLICA – PUBLIC INFORMATION

Adjusted expenses reconciliation (R$ million)

1Q20

1Q19

1Q20/1Q19

4Q19

1Q20/4Q19

(%)

(%)

Expenses

(597.8)

(665.0)

-10.1%

(656.6)

-8.9%

(+) Depreciation and amortization

261.9

257.6

1.7%

257.8

1.6%

(+) Long term stock based compensation

42.1

52.5

-19.8%

38.6

9.1%

(+) Expenses related to the combination with Cetip

(+) Provisions (recurring and non-recurring)

(21.1)

48.4

-143.5%

18.2

-215.9%

(+) Revenue-linked expenses

41.1

74.9

-45.2%

30.1

36.3%

Adjusted expenses

(273.8)

(231.6)

18.2%

(311.8)

-12.2%

EBITDA reconciliation (R$ million)

1Q20

1Q19

1Q20/1Q19

4Q19

1Q20/4Q19

(%)

(%)

EBITDA

1,569.3

970.8

61.6%

1,179.9

33.0%

(+) Expenses related to the combination with Cetip

(+) Non-recorring provisions

Recurring EBITDA

1,569.3

970.8

61.6%

1,179.9

33.0%

Recurring EBITDA margin

82.4%

70.4%

1.193 bps

74.7%

763 bps

PUBLIC INFORMATION

INFORMAÇÃO PÚBLICA – PUBLIC INFORMATION

Financial Statements

Net income reconciliation (R$ million)

1Q20

1Q19

1Q20/1Q19

4Q19

1Q20/4Q19

(%)

(%)

Net income (attributable to shareholders)

1,025.6

606.2

69.2%

733.4

39.8%

(+) Expenses related to the combination with Cetip

(+) Non-recurring provisions

(+) Impairment

(+) Amortization of intangibles from combination with Cetip

131.1

130.3

0.6%

130.9

0.1%

Recurring net income

1,156.6

736.5

57.0%

864.5

33.8%

(+) Deferred Tax (goodwill from Cetip combination)

119.6

119.6

119.6

Recurring net income adjusted by goodwill tax benefit

1,276.3

856.1

49.1%

984.2

29.7%

PUBLIC INFORMATION

INFORMAÇÃO PÚBLICA – PUBLIC INFORMATION

Disclaimer

B3 SA – – Brasil, Bolsa, Balcão published this content on 26 May 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 June 2020 08:15:07 UTC

Latest news on B3 S.A. – BRASIL, BOLSA, B

Sales 2020 6 878 M
1 289 M
1 289 M
Net income 2020 3 403 M
638 M
638 M
Net cash 2020 4 535 M
850 M
850 M
P/E ratio 2020 27,8x
Yield 2020 3,46%
Capitalization 93 092 M
17 104 M
17 447 M
EV / Sales 2019
EV / Sales 2020 12,9x
Nbr of Employees 1 442
Free-Float 98,8%

Chart B3 S.A. – BRASIL, BOLSA, BALCO

Duration :


Period :


B3 S.A. - Brasil, Bolsa, Balc

Technical analysis trends B3 S.A. – BRASIL, BOLSA, B

Short Term Mid-Term Long Term
Trends Bullish Neutral Neutral

Income Statement Evolution

Consensus


Sell

Buy
Mean consensus OUTPERFORM
Number of Analysts 14
Average target price
48,21 BRL
Last Close Price
45,55 BRL
Spread / Highest target 29,5%
Spread / Average Target 5,85%
Spread / Lowest Target -34,1%

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