January 2012

Forward Looking Statements

This presentation may contain certain statements that express the managements 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 BM&FBovespa 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 BM&FBovespa performance. The factors that might affect performance include, but are not limited to: (i) market acceptance of BM&FBOVESPA services; (ii) volatility related to (a) the Brazilian economy and securities markets and (b) the highly-competitive industries BM&FBovespa operates in; (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 BM&FBovespa 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 BM&FBovespa 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 BM&FBovespa 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.

BVMF STOCK PRICE Recent Performance

BVMF3 recent performance

140

BVMF3 YTD: -25.2%

BM&FBOVESPA
130 IOFs 10/17 R$14.97 Goodwill Competition 11/30 News R$13.04 01/05 R$13.12 BATs 02/15 R$11.45 Rumors about IOF Exchanges Mergers 02/08 R$11.20

IBOVESPA

Ibovespa YTD: -18.1%

120

110

100

Reductions of Volumes Estimates by the Market Direct Edge 11/21 R$10.11

90

80

70

New IOF on Derivatives 07/26 R$9.55

Jul-11

60
Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11
Note: updated until December 29, 2011

Redemption of IOF on Equities 12/01 R$9.88

Aug-11 Sep-11 Oct-11 Nov-11 Dec-11
4

BRAZILIAN MARKET OPPORTUNITIES

Brazil represents a unique investment opportunity

Rio Olympics 2016 and World Cup 2014

Pre-salt Oil Exploration

Increase in Income Levels

Interest Rate Decline

Brazilian per capita income will rise from US$10k in 2010 to US$20k in 2020 (1)

New growth cycle and investments in infra-structure

Brazil will have the 6th highest world purchasing power by 2013 (Price Coopers) (2)

Development of Mortgage Market

Expansion of Middle Class

Greater Internal Demand

Entrepreneurial Stimulus

(1) LCA Consultores as of Jun/10. (2) Price Coopers as of Jan/10.

6

Equity Market (BOVESPA Segment)

Low penetration in the Brazilian market
Clients base: huge potential in retail and pension funds segments
Number of custody accounts (thousands)
Dec11 611.2

Low penetration of equity and derivatives in the main investors portfolios Stable and low interest rate environment encourage more exposure in equities

Pension funds portfolio

R$545 billion

Equity Fixed Income and Others

69.6%

128.6

Jan-05

Jan-06

Jan-07

Jan-08

Jan-09

Jan-10

Jan-11

Jul-08

Jul-05

Jul-06

Jul-07

Jul-09

Jul-10

Jul-11

Recent growth in the number of retail investors, but still low compared to other markets

R$168 billion 72.3% 27.7% 2002 Jun-11 30.4%

Listed Companies
Dec10 Listed Companies (27th in the World)
6,586 5,095 3,741
3,566

Low number of listed companies compared to other countries

3,476

3,345

2,966 1,999 1,798 379

Lack of important economic sectors in the exchange, for instance: oil & gas, infrastructure, retail, IT and pharmaceutical,
Investment cycle may bring new companies and sectors to the exchange
Brazil

India

USA

Canada

Japan China / HK Spain

London Australia Korea

Currently, SMEs are not able to raise money through equity easily
7

Source: ABRAPP, WFE and BM&FBOVESPA

Derivatives Market (BM&F Segment)

Growth in the credit level will favor volumes
Credit: very low credit level and even lower in the case of mortgage transactions
Credit to GDP
Total Credit Mortgage

Trade Flow (total Imports + Exports in USD billions)

442
48.2%

371 281 229

281

384

27.4%

4.5%

4.7%

Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11

2006

2007

2008

2009

2010

11M 2011

Interest Rate in BRL contracts: growth in credit levels, specially in fixed rates, support the increase the activity of financial institutions

FX contracts: growth in the amount of foreign trading and change in the culture of the Brazilian entrepreneurs can push up volumes in this group of contracts, mainly in currencies other than US$
Index-based contracts: growth in cash equity market, the launching and development of ETFs and the growth of exposure to equity by institutional investors can drive the growth of these contracts Commodities contracts: cash settled contracts and the change in the behavior of farmers that are becoming more sophisticated
8

MAIN INITIATIVES

Launching of new products

Product diversification strengthens revenues and competitive position

Growth in ETFs

10 ETFs currently traded

process initiated equity options Market maker for options Bidding for 10 companiesto selectthe IBOVESPA market makers and for

Cross-listing of Cross-listing of futures contracts with CME Group (stock index-based and commodities contracts) and BRICS derivatives with CME and exchange (stock index-based contracts) BRICS Launch of Additional BDRs
40 BDRs currently traded and other 30 to start in the coming months

Brazil Easy Investing

Order book in foreign currency (targeting foreign retail investors)

10

Strategic Projects

Multi-asset trading platform (PUMA Trading System) State of the art in trading technology and technological independency Derivates module successfully implemented in 2H11 Equities market to be concluded in 2H12

Licensing TRADExpress Real Time Clearing system Objective: integrating and modernizing our existing clearing facilities should proceed over 2012. Integrated tests with the market and implementation of the systems scheduled to take place in 2013 Partnership advantages: License to use the software Access to the source code Selling rights over our new clearing platform

Registration systems for OTC derivatives Objetive: modernize, improve and expand the range of our registration services for OTC derivatives, while offering our customers a streamlined, quality solution and thorough regulatory reporting tool One of the most flexible and complete engines for registration, price discovery, risk assessment, capture and lifecycle processing of these transactions Three-module implementation: the first one is schedule to 2H12, the second one for 1H13 and third module of the platform will be announced in due course

11

International Projects
Creating a global market Partnerships with international exchanges - Strategic partnership with CME Group - Asia: MoU and discussions with HKEx, Shanghai and Shenzhen Exchanges - Latam: MoU with Chile and Colombia exchange and discussions with Peru and Colombia - Cross listing of Index-based futures with exchanges of BRICS countries Strengthening the sales force in other countries - Offices in New York, London and Shanghai

12

Showing results
HFTs and Co-location arrangements: ADTV
BOVESPA Segment
HFT via other connection models
HFT via Co-location 1,329 1,145

Market Making for Options on Single Stocks: ADTV Single stocks: OGXP3 and ITUB4
(in R$ millions)

25.9
69%

(in R$ millions)
533 56
477

812 199

899 228

574 720

18.7

613

671

755 425

Nov-Dec/10

1Q11

2Q11

3Q11

4Q11

Jan-Aug 2011

Average (Sept - Dec 2011)

7.227 4.438

ETFs: ADTV
(in R$ millions) 71%

Treasury Direct Value under custody

(in R$ millions)
3.268

48,7 18,6 2009 28,5

dez-09 jan-10 fev-10 mar-10 abr-10 mai-10 jun-10 jul-10 ago-10 set-10 out-10 nov-10 dez-10 jan-11 fev-11 mar-11 abr-11 mai-11 jun-11 jul-11 ago-11 set-11 out-11 nov-11

2010

2011

Trading system performance and throughput capacity

Mega Bolsa GTS PUMA (2012)

Latency or round-trip time (milliseconds) inside BVMF Processing peak (in million messages per day)
* Refers to the system capacity

10-15 7.5

10-15 6

<1 200*
13

BUSINESS MODEL AND REGULATORY FRAMEWORK

14

Possible Competition
Important considerations
EASING REGULATION IS NOT EXPECTED
Main requirements: pre-trade controls, self-regulatory (SRO), off exchange trades are not permitted (internalization of orders and OTC), CCP for stocks trading, post-trading at the beneficial owner level Competition in other exchanges was intensified after easing regulation

THE EXCHANGE FEES (TRADING AND POST-TRADING) ARE PAID BY THE FINAL INVESTOR
Differently from USA and Europe, the final investors is the one who pays the exchange fees Brokers couldnt increase their share in the all-in trading cost pie in case of reduction on the exchange fees STOCKS TRADING ALL-IN COST IN BVMF IS COMPETITIVE

Despite the misleading perception, all-in cost in BVMF is competitive compared to other markets
Comparing only the trading fees among exchanges is misleading. BVMF provides higher portion of services than the peers IT INFRASTRUCTURE MOVING TO STATE OF THE ART

There is no gap of IT infrastructure

Increasing participation of HFT via Co-location (moving to sub millisecond latency) RECENT BM&FBOVESPA INITIATIVES (REBALANCING OF FEES STRUCTURE) Shift between trading and post-trading fees
15

Brazilian Market Regulatory Framework

Legal requirements: resilience, transparence, clear rules.

Regulators words about sharing the post-trading facilities

in the regulations, there is nothing that either prohibits or obliges companies regarding use of the clearing services of BM&FBovespa
Head of CVM, Maria H. Santana, for FT in Nov 15, 2011

CVM will receive a report from an independent consultant (Oxera)

Analysis of the Brazilian capital market framework Some subjects that could be visited in this study: Block Trading Facility; High Frequency trading; Listing requirements; among others Positive characteristics of the Brazilian regulatory framework that will not change: transparency pre and posttrading (including prohibition for internalization of orders) and the beneficial owner level model The study will be funded by a domestic broker as part of the payment of a fine (it is under discussion since the beginning of the year) The study is expected to be delivered in April or May 2012

Important issues regarding competition

Benefits from market fragmentation versus implied risks (transparency, price discovering, among others) Risk management: differently from many other markets, BVMFs clearing risk system is based on pre trade risk management, what makes our market much safer (integrated model allows it) Trading / auction rules: this rules are stricter in Brazil and must be harmonized among venues

Listed Companies monitoring: who and how to do that

Market supervision: how perform this role and assure the market efficiency
16

Equity Market Settlement Structure - Brazil Compared with USA

Two different regulatory frameworks BRAZIL
(All the trades must be matched on an exchange environment)

USA
(Brokers can internalize orders)
Trading Venues

Trading

BVMF

BVMF

DTCC

Brokers A and B

Brokers A and B Broker A Broker B

Post trading
Clearing (CCP) Settlement Central Depository

Investors

Investors

Investors

Investors

100% vertically integrated: clearing, settlement and central depository at the beneficial owner level

DTCC does the clearing, settlement and central depository of securities at the brokers level Each broker (prime broker) has its own structure to control their clients portfolios and settle positions (this impact the prime brokers costs)

Brokers control their clients portfolios and settle positions through BVMFs infrastructure (this impacts the post-trade fees charged by BVMF)

17

Business Model
Listed Exchange Business Model
Diversified and Integrated Integrated Derivatives Diversified but Not Integrated*

* Do not provide post-trading services for the equity market

Market Capitalization (US$ billions) and 2010 EBITDA Margin (%)

Source: Bloomberg 35
30

Updated until: 12/29/2011

80.1% 70.0% 70.0% 67.0% 78.1% 68.4% 55.8%
80,0%
70,0%

25
20 15 10 5

55.0%

62.2% 44.0% 48.0%

42.1%

60,0%
50,0%

18.4

16.9 12.0 11.8 9.0

40,0%

7.3

30,0%

5.6

5.3

4.6
Nasdaq

3.6
LSE

3.4
TMX

20,0%

2.2
BME

10,0%

0,0%

HKEx
* 12 months ended on Jun/11

CME

Deutsche Boerse

BVMF

ICE

Nyse Euronext

ASX *

SGX *

Diversified and integrated

Derivatives

Diversified but not integrated

EBITDA Margin 2010

18

Brazilian Market Regulatory Framework

Legal requirements: resilience, transparence, clear rules.
Brokers & investors

Regulation prohibits internalization of orders, dark pools and ATS/MTFs, stocks trading in both exchange and OTC simultaneously Settlement and clearing of stocks trading must be done through a CCP Settlement and clearing at the beneficial owner level make the Brazilian market safer and more resilient

Trading

Under the regulation in place, potential competitors would be obliged to provide the same integrated solution, with the same rules and transparency The final investor pays the exchange fee

Pos-Trading

Other exchanges have been seeking integrated models (self clearing models) Naked access is not allowed Naked short selling is not possible

19

New Fee Structure Bovespa Segment

Demystifying: BVMF prices are competitive

The new fee structure shows that the fees charged by BVMF are competitive
in the USA, the average all in trading cost could vary from US$0.02 to US$0.04 per share, in line with the Brazilian market

In average, retail investors pay less to trade stocks in Brazil than they pay in USA!

Institutional Investors (stock price at US$28.00)

Lower Fee
(Exchange) Cents of Bps US$ 0.70 0.196 1.80 0.504 2.50 0.700 (a) 1.50 (b) 5.00 (c) 10.00 (a) 4.00 (b) 7.50 (c) 12.50 0.420 1.400 2.800 1.120 2.100 3.500

Retail Investors (retail brokers simulation)

BRL

Higher Fee
(Exchange) Cents of Bps US$ 0.70 0.196 2.75 0.770 3.45 0.966 1.50 5.00 10.00 4.95 8.45 13.45 0.420 1.400 2.800 1.386 2.366 3.766 Broker Exchange

USA 13.80 13.80

BRAZIL 9.06 2.59 11.65

Trading Fee Settlement Fee BVMF Total Fee Broker fee (estimate)

+ =

All-in cost

All-in cost

In the USA the interface is only with the brokerage house (the exchange cost is embedded within the broker fee), while in Brazil the interface is with both broker and exchange

The average share of BVMF in the investors all in cost ranges is 373%
The minimum fee is paid by local institution and investment clubs and day trading, in this case, for all type of investors. Brokers fee (Brazil and USA) is the average price collected from four USA discount brokers and from four Brazilian retail brokers in June 2011. The R$2.59 exchange fee per order results from: 3.45bps on a trade of R$7.5 thousand (average size of the Home Broker trading). 3 It considers the average fee charge by BVMF and brokers, 2.975 bps and 5.000 bps, respectively.

20

Fees in other Cash Market

Comparing with Deutsche Brse (integrated model)

Comparing trading and post trading costs: BVMF vs. Deutshe Brse
in USD
Local

Holding Period - 3 months BVMF Deutsche Brse

Foreigner 100 Trades 25 Trades Local

Holding Period - 12 months BVMF Deutsche Brse

Foreigner 100 Trades 25 Trades

Trading
Post trading Clearing and Settlement Depository All-in cost

2,100 5,601 5,400 201 7,701

2,100 8,262 8,250 12 10,362

1,512
7,651 5,776 1,875 9,163

1,241 3,319 1,444 1,875 4,560

2,100 6,204 5,400 804 8,304

2,100 8,299 8,250 49 10,399

1,512
13,276 5,776 7,500 14,788

1,241 8,944 1,444 7,500 10,185

In Germany, the post trading costs, in special the depository cost, are higher than the trading costs
Note: institutional investor simulation; 500 th stocks trading size; USD30.00 stock price; USD15 million value under custody; Deustche Brse / Clearstream costs: trading: 0.00504%; clearing and settlement US$28.88 by settlement; trading and clearing/settlement are due in both in and out of each transaction; custody: 0.05% a.a. Deutsche Brse fee schedule and source done by Rosenblatt Securities Inc.
21

Brazilians stock trading breakdown

End of CPMF (Financial Transaction Tax)

Novo Mercado Launching

Sarbanes-Oxley Act (SOX)

Dec11

16.1%

34.8%

18.8%

25.4% 65.2% 39.7%

Aug-11

May-11

Other USA Venues - Brazilian ADRs

NYSE - Brazilian ADRs

BM&FBOVESPA - companies with ADRs

Mar-11

BM&FBOVESPA (except companies with ADRs)

Source: Bloomberg (in USD traded value of 35 companies with ADRs programs )

Public Offerings in Number of Companies

IPOs Follow ons Total Dual Listings
*Updated until 12/31/2011

2001 14 14 -

2002 1 5 6 -

2003 8 8 -

2004 7 8 15 2

2005 9 10 19 1

2006 26 16 42 1

2007 64 12 76 -

2008 4 8 12 -

2009 6 18 24 1

Nov-11

2010 11 11 22 -

Dec-11

Apr-11

Sep-11

Feb-11

Oct-11

1996

2001

2002

2007

2008

1997

1998

1999

2000

2003

2004

2005

2006

2009

2010

Jan-11

Jun-11

Jul-11

2011 11 11 22 -

Total 139 121 260 5

22

OPERATIONAL HIGHLIGHTS

23

BOVESPA Segment: operational highlights

Average Daily Traded Value ADTV (BRL billions)

7.3 6.5
4.9 5.5

7.7

6.5

6.5

6.5

6.7

7.1 6.1 5.9 5.7 6.3 5.9

6.2

5.3

2.4 1.2
1.6

2004

2005

2006

2007

2008

2009

2010

2011*

Jan-11 Feb11

Mar11

Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11

Number of Custody Accounts (Thousands)

Turnover Velocity* (12 months average)

640 559 576

626

632

622

611
56.4% 42.3%
36.8%

63.2%

66.6% 63.8% 64.2%

37.6% 38.7%

30.8%

29.4%

2008

2009

2010

1Q11

2Q11

3Q11

4Q11

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

* Updated until December 31, 2011 **Relation of the trading value in the cash market and the market cap of the exchange 24

BOVESPA Segment: capital raising activity

Public Offerings (BRL billions)

IPO

Follow-On

70.1 14.5 46.0 30.4 34.3 55.6 26.8 23.8 7.5

2007 2008 2009

74.4

22.2

63.2 18.0 10.8 7.2

2011

8.8 4.3 4,5

2004

13.9 8.5 5.4

2005

15.1 15.4
2006

11.2
2010*

Pipeline: already announced to the market

There are 4 offerings in the pipeline

IPOs (4): Isolux Infrastructure, Brasil Travel Turismo e Participaes, Seabras Servios de Petrleo and CVC. Follow-Ons (0):

* Excludes the capitalization with barrels reserves by federal government - BRL74.8 billion in Petrobras offering. ** Updated until December 30, 2011

25

BOVESPA Segment
Potential to increase the number of listed companies
Market Capitalization to GDP (%)*
168% 130%
95% 78% 170% 166%

Hong Kong :
138% 129 % 137% 126%
118% 107%

617%

1,095%

1,208%

2008
107% 100%

2009

2010

70%

82%
67% 53%

93% 85%

53%

100% 75% 81% 75% 75% 66%67% 62 53%

73% 74% 36% 21% 44% 39%

Chile

Singapore United Kingdom Canada

USA

Korea

India

China

France

Japan

Brazil

Mexico

Market Capitalization by Economic Sector

Dec11
26,4% 14,1% 11,5% 10,4% 16,2% 6,8% 11,1% 0,6% 3,9% 0,3% 2,6% 1,8% 4,7% 8,6% 2,5% 3,6% 21,6% 15,2%

* Source: World Bank

Dec05
22,4%

15,7%

Oil, Gas and Biofuels Consumer Non Cyclical Public Utilities

Basic Materials Consumer Cyclical Financial

Capital Goods and Services Information Technology

Construction and Transportation Telecommunications

26

BM&F Segment: operational highlights

Average Daily Traded Volume ADTV (Thousands of contracts)

3,106 2,505 285 191 1,167

74 266
711
2006

3,482
300

3,418
340

2,701
123 496

2,656

2,824

1,740 1,573 1,521 541 167

112 473
988 2007

89

84 248 117 437 218 62 391 438

2,364

221

108 522

2,199
323
2,552

2,430
531

162

805
187
422
2004

852
109
501

124 68

88 535
789

150

84 574
1,217

292 2,107 114 286

195 501

2,830
350

2,596 2,706
280

120 586

282

80 447
843 2009

110 491

184 544

110 86 168
2005

1,684

1,797

1,937

2,068

2,383

148 2,065 487 245 148 438

1,789 1,234

1,493

1,774 1220

1,589

2008

2010

2011*

Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11

BRL Int. Rate (Thousands)

FX (Thousands)

Index (Thousands)

Others (Thousands)

Rate per Contract - RPC (BRL)

2006 Interest rates in BRL FX rates Stock Indices Interest rates in USD Commodities Mini contracts OTC Total RPC 0.906 2.244 1.419 1.094 4.749 0.034 1.571 1.247 2007 0.950 1.859 1.501 0.965 3.195 0.054 2.111 1.224 2008 1.141 2.065 2.145 1.283 3.587 0.162 2.355 1.527 2009 0.979 2.161 1.620 1.357 2.307 0.176 1.655 1.365 2010 0.889 1.928 1.564 1.142 2.168 0.128 1.610 1.134 2011 0.918 1.894 1.614 0.941 2.029 0.129 1.635 1.106 J-11 0.794 2.003 1.592 1.143 1.827 0.147 1.412 1.021 F-11 0.877 2.037 1.806 1.159 2.084 0.144 1.414 1.075 M-11 0.853 2.012 1.451 0.989 2.153 0.135 1.359 1.025 A-11 0.750 1.920 1.875 0.951 1.774 0.139 1.367 0.964 M-11 1.111 1.820 1.477 0.801 1.967 0.132 2.107 1.252 J-11 1.053 1.813 1.864 0.944 2.131 0.140 1.535 1.220 J-11 1.096 1.807 1.416 0.846 1.954 0.132 1.606 1.220 A-11 0.917 1.699 1.624 0.851 1.765 0.125 1.830 1.034 S-11 0.998 1.833 1.358 0.918 1.977 0.111 1.575 1.136 O-11 0.931 2.014 1.645 1.069 2.698 0.118 1.234 1.177 N-11 0.928 2.082 1.690 0.922 2.558 0.124 2.051 1.153 D-11 1.086 2.082 1.719 0.930 2.385 0.132 2.444 1.293

Updated until: December 30, 2011

27

Interest Rate in BRL Contracts

Structural changes behind the growth in volumes
Interest Rate in BRL Contracts Breakdown by Maturity (thousands of contracts)
Uncertainty in consensus impacts short term contracts

1.200

1.000
800

600 400
200

2007

2008

2009

2010

2011

Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 2nd. Maturity 3rd Maturity 4th. Maturity

Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 5th Maturity

1st. Maturity

Fixed Rate Credit in BRL billions

Nov11 R$739 bi

Public Debt / Fixed Rate - in BRL billions

Nov'11: 647.9

Jan05 R$180 bi

151.4

Jan-05

Jan-06

Jan-07

Jan-08

Jan-09

Jan-10

Jan-11

Jan-05

Jan-06

Jan-07

Jan-08

Jan-09

Jan-10

Jan-11

Source: Brazilian Central Bank

28

High Frequency Trading (HFT)

HFT will play an important role in both cash and derivatives markets HFT BM&F Segment
(ADTV in thousands of contracts and mkt. share)
1,80

HFT Bovespa Segment

(ADTV in BRL billions and mkt. share)
7.3% 8.7%
481 474
28 33

11.4% 1.68

14,

1,60 1,40

8.3%
408
27 6.4%
1,20 1,00
0,80

6.0%
301

3.8% 93 207 42 208 4.8% 188 17

151
50

4.7% 4.8% 4.9% 251 3.6% 251

10 95 45 43 66 101 93

3.6% 274 5.4% 11 4.2% 3.9% 239 8 239 4 113 3.5% 222 222 18
179
17 68 29 65 51 65 48 67 16 90 18 102 45 49 82 88 90 92 42
49

6.7%

7.5% 203 218 300

334
167 26 6.9% 133

88

66

1.0% 22 0.3% 32 18
4

2.8% 53 81
44 50 5 41

77 41 69 155

90 43 74

61 50

120 42 124

0,60 0,40 0,20

4.5% 0.56 0.20 0.22 0.14

82 38 77

8 4 20

118 101 126

162 155 153

85
-

8.7% 8.6% 1.00 7.6% 0.97 0.90 5.9% 5.9% 5.7% 0.78 0.19 0.15 0.15 0.73 0.27 0.75 0.26 4.0% 0.14 0.21 0.29 0.25 0.50 0.21 0.35 0.26 0.25 0.17 0.27 0.16 0.51 0.49 0.56 0.26 0.35 0.34 0.32 0.17

6.6% 0.96

10.3% 0.20 10.4% 1.46 11.5% 1.30 0.16 1.34 0.38 0.17 9.3% 0.16 0.28 0.26 0.11 0.31 0.21

12,

10,

8,0

6,0

1.10 0.82

1.02

0.91

4,0

0.83

2,0

0,0

FX

Equities

Mini contracts

Interest Rates in BRL

% in Overall Volume

ADTV (Foreigners)

ADTV (Individuals)

ADTV (Institutionals)

% of overall market

(ADTV in thousands of contracts and mkt. share)

Co-location BM&F Segment

Co-location Bovespa Segment

(ADTV in BRL billions and mkt. share)
5.6% 4.7% 6.0%

6.4%

5.4%

5.3%

7.2% 6.1%

5.6% 2.9% 162 2.8% 173

4.8%

6.2%

434

408

4.2% 314 225

5.9%

2.0%

2.7%
246 186

1.4%
244

1.6%
218

1.8%
218

2.1%
248

2.6%
301

726

791 681

711

661

2.1% 112

232

263

1.0%
126 211 257

Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11

Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11

Jan/11 Feb/11 Mar/11 Apr/11 May/11 Jun/11

Jul/11 Aug/11 Sep/11 Oct/11 Nov/11 Dec/11

29

Appendix

30

Fully integrated Business Model

Diversified sources of revenues
Services for issuers, brokers and commodities trading Listing (stocks, bonds, funds, asset-backed securities, Among others )

Trading, Clearing and Depository Activities

Others Services Custody (services provided for funds and other market participants) Market Data

Trading (stocks, derivatives, corporate and government Bonds, funds, spot US Dollar, among others)

Commodities Certification

Central Counterparty (CCP) Clearing and Settlement (for all products)

Indices Licensing Trading Access (Brokers) Central Depository (stocks and corporate bonds) Software Licensing (used by brokerage Houses and other market participants) OTC Derivatives (registration and collateral management)

Securities Lending (stocks and corporate bonds

31

BM&FBOVESPA Costs
Seg. BOVESPA Custody

Custody - Account Maintenance Account without movement or position Account with movement or position of Equities Market assets Fee on the amount in custody* from BRL 0 to BRL 1,000,000.00 from BRL 1,000,000.01 to BRL 10,000,000.00 from BRL 10,000,000.01 to BRL 100,000,000.00 1.30 bps 0.72 bps 0.32 bps BRL3.00 BRL6.90

from BRL 100,000,000.01 to BRL 1,000,000,000.00

from BRL 1,000,000,000.01 to BRL 10,000,000,000.00 starting from BRL 10,000,000,000.01
Note: *This fee is not charged for nonresident investors. * Fee exemption for custody positions of up to BRL300,000.00 will be maintained

0.25 bps
0.15 bps 0.05 bps

32

High Frequency Trading - HFT New Products Pipeline

Main Characteristics

New pricing policy (both segments)

Differentiated fees by tier only for day trades transactions executed by a registered HFT A HFT Committee created to approve and monitor the HFTs The new pricing policy was implemented in Nov10

Bovespa Segment
In the Bovespa Segment, different tiers were created for individuals and non-individuals HFT investors
Individuals ADTV tier (BRL millions) Up to 4 (inclusive) From 4 to 12.5 (inclusive) From 12.5 to 25 (inclusive) From 25 to 50 (inclusive) Above 50 Trading Fee (bps) 0.70 0.50 0.20 0.05 0.05 Settlement Fee (bps) 1.80 1.80 1.80 1.75 1.55 Total 2.50 2.30 2.00 1.80 1.60 Non-individuals ADTV tier (BRL millions) Trading Fee (bps) Settlement Fee (bps) Total

Up to 20 (inclusive)
From 20 to 50 (inclusive) From 50 to 250 (inclusive) From 250 to 500 (inclusive) Above 500

0.70
0.50 0.20

1.80
1.80 1.80

2.50
2.30 2.00

0.05
0.05

1.75
1.55

1.80
1.60

BM&F Segment
In the BM&F Segment, the 70% flat discount was replaced by a volume tiered based discount, only for day trades, divided into trading and registration fees
33

BOVESPA Segment: foreign investment flow

Monthly Net Flow of Foreign Investments* (in BRL billions)

9.1 8.0 5.8 5.5 5.2 4.2 3.43.8 2.5 2.1 1.5 1.4 0.5 0.7 -0.4 -0.6 -1.2 -0.1 -0.6 -1.5 7.3 10.0

6.1

4.4
3.4 1.9 2.1 1.7 1.7 0.70.8 0.4 1.0 0.4

1.2

0.5

-1.0

-0.4 -0.2
-1.4 -2.4

-2.9
-4.7

-1.8 -2.3

-2.1

-4.7 -6.3

*Includes regular trades and public offering; updated until November 30, 2011. 34

Operational highlights: investor s participation in Total Volume

BM&F Segment (Investors Participation in Total Volume)

2% 7% 12% 24% 2% 7% 15% 25% 2% 9% 17%
23%

3% 8%
19% 23%

3% 8% 20% 24%

2% 4% 22% 30%

2% 4%
23%

2% 4% 19%

2% 3% 19%

2% 3% 20% 32%

2% 4% 20%

2% 4%

2% 5% 23% 31%

2% 5% 25% 33%

2% 5% 26%

2% 5%
27% 32%

2%

5%

1% 5% 23% 34%

24% 31%

25% 34%

2% 3% 16% 34%

33%

31%

31%

33%

35%

56%

51%

49%

48%

45%

42%

38%
2011

45%

44%

42%

41%

38%

39%

35%

32%

35%

35%

36%

46%

2005

2006

2007

2008

2009

2010

Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11

Central Bank

Companies

Individuals

Foreign Investors

Institutional Investors

Financial Institutions

Bovespa Segment (Investors Participation in Total Value)

12%
33% 2% 2% 2% 2% 3% 2% 2% 7% 9% 8% 10% 10% 8%

8%
35%

1% 1% 2%2% 2% 2% 2% 2% 3% 1%8% 1% 10% 1%8% 9% 8% 9% 8% 10% 8% 9% 9% 34% 32% 34%

34%

36%

35%

35%

34%

30%

35%

35%

33%

37%

34%

36% 35%

39%

27%

27% 25%
2006

30% 23%
2007

27% 27%
2008

26%

33%

33% 21%
2011

34% 22%

33% 22%

35% 23%

34% 21%

33% 22%

33% 21%

35%

32% 20%

34% 23%

33% 33% 20% 22%

32% 18%

25%
2005

31%
2009

26%
2010

24%

Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11

Individuals

Institutional Investors

Foreign Investors

Financial Institutions

Companies

Others
35

Investment Funds
AUM Evolution (in BRL billions)
1,899 Equities Fixed Income 1,301 1,070 861 657 899 1,703 1,787

15%

1,513 1,375

18%

18%

22%

15%

14%

11%

10%

11%

11%

2002

2003

2004

2005

2006

2007

2008

2009

2010

Nov/11

Percent of Equity Fund Assets

Worldwide Brazil
Equity funds 15%

Equity funds 39%

Source: ANBIMA and Investment Company Institute ICI (2Q11).

36

Price Earnings Estimated

P/E
1,100 1,050

1,000

0,950

0,900

0,850

0,800

0,750

0,700

0,650

0,600
jan-10 fev-10 mar-10 abr-10 mai-10 jun-10 jul-10 ago-10 set-10 out-10 nov-10 dez-10 jan-11 fev-11 mar-11 abr-11 mai-11 jun-11 jul-11 ago-11 set-11 out-11 nov-11 dez-11 jan-12

Ibovespa/Dow Jones

Ibovespa/S&P 500

Source: Bloomberg

37

SUSTAINABILITY

38

BM&FBOVESPA Sustainability Mission

BM&FBOVESPAs Sustainability Mission

Support, promote and practice the concepts and actions towards economic, social and environmental responsibility with the purpose of contributing to sustainable development

Novo Valor BM&FBOVESPA

Program created in 2010 to guide sustainability actions of BVMF.

Goal
Induce and promote the sustainable development of the BM&FBOVESPA and the capital market, involving all audiences, including investors, companies and brokerages.

39

BM&FBOVESPA Sustainability Program

Working in four dimensions

1. Natural Resources Mgt

GHG Inventory Materials recycling program Ecoefficiency Green IT Member of Carbon Disclosure Project South America Board of Empresas pelo Clima, FGV

4. Stakeholder Engagement
Instituto BM&FBOVESPA Stakeholders Global Compact Signatory (1st exchange) PRI Signatory (Principles for Responsible Investment) Organization Stakeholder GRI (Global Reporting Initiative); Member of Board for GRI Brazil

2. Governance
Novo Mercado Advisory Boards Sustainability Committee Sustainability Comission

3. Products and Services

Indexes: ISE, ICO2 and IGC/IGCT Carbon Market Em Boa Companhia (program with companies)

40

3Q11 EARNINGS

41

3Q11 highlights
Focus on cost control and return to shareholders

Financial and Operational highlights

Net Revenues: R$494MM(3Q10: R$489MM)
(up 0.9%)

Volumes growth (3Q11 vs. 3Q10): 15.5% higher in BM&F seg and 11.7% in BOVESPA seg HFT hits all-time high on record: 7.8% in BM&F seg and 10.3% in BOVESPA seg Shareholder return: 9M11 dividends and buybacks reached R$1.3 bn (~ R$0.65 per share). In 3Q11:

Adj Expenses.1: R$136MM (3Q10: R$146MM)

(down 6.6%)

Adj Net Income.2: R$400MM (3Q10: R$389MM)

(up 2.7%)

Dividends: R$233.6 million, 80% of 3Q11 net income Buybacks: R$250 million (27.3 million shares)

Budgeted OPEX and CAPEX for 2011 revised down

Adj EBITDA 3: R$356MM(3Q10: R$344MM)

(up 3.4%)

Strategic Projects

Adj EBITDA Margin: 72.1% (3Q10: 70.4%)

New fee structure eliminates previous cross-subsidies, strengthens competitive position and aligns with international peers Derivatives module for the new multi-asset platform (PUMA Trading System) successful implementation of the derivatives module Clearing integration: development of the technology infrastructure Market making for options on single stocks: ongoing market making for options on four single stocks and options on IBOVESPA

Adj EPS: R$0.205(3Q10: R$0.194)

(up 5.9%)

Excludes stock options plan, depreciation, allowance for doubtful accounts, and tax on dividends from CME Group. 2 Excludes deferred liability recognized in correlation with temporary differences from amortization of goodwill for tax purposes, the impact of the stock options plan and the investment in associate (CME Group) accounted for under the equity method of accounting, net of taxes. 3 Excludes stock option plans costs . 42

2012 Budgets
Commitment to cost control
Adjusted Operating Expenses - 2012 Budget
CAPEX 2012 Budget

2012 Budget: between R$580 million and R$590 million Maintenance of headcount Steadily effort to reduce other expenses lines

2012 budget: between R$230 million and R$260 million Continuity of IT investments Equities segment of PUMA Trading System New Data Center Clearings integration

2012 budget in the same range of 2011 R$ millions

544 590 590

New OTC platform Improvements in infrastructure

580

580

R$ millions
268
210

260

230

180

2010

2011e

2012e

2010

2011e

2012e

Adjusted Expenses exclude depreciation, stock option program, provisions and tax on dividends from CME.

43

Adjusted Opex Budget

Focus on expense controls

Maintenance of Adjusted Opex1 for 2012

2012 Budget: between R$580 million and R$590 million Maintenance of headcount Steadily effort to reduce other expenses lines

2012 budget in the same range of 2011

R$ millions
544 590 590

580

580

2010

2011e

2012e

Adjusted Expenses exclude depreciation, stock option program, provisions and tax on dividends from CME.

44

Capex Budget
Continuity of investments over 2012

Investments over 2011-2012 between R$410 million and R$470 million

2012 budget: between R$230 million and R$260 million Continuity of IT investments Equities segment of PUMA Trading System New OTC platform Improvements in infrastructure Others

New Data Center

Clearings integration

268
R$ millions
210

260

230

180

2010

2011e

2012e
45

BOVESPA Segment Performance

Higher Volumes: increased market volatility and HFT activity growth
ADTV and Margin
10,00 8,00
6,00

3Q11 Volumes
ADTV surged 11.7% over 3Q10 Greater HFTs share of overall volume (mainly foreigners, 3Q11 volume soared 87% from 2Q11) Market volatility positively impacted trading volumes

6.16

6.11

6.02

5.86

5.71

4,00
5.9

6.8

6.7

6.2

6.6

2,00 0,00 3Q10 4Q10 ADTV (R$ billions) 1Q11 2Q11 3Q11 Margin in bps

HFT: ADTV and share of trading volume

10.3% 1,329.1

Average market capitalization and Turnover velocity

3,5 60.1% 3,0 160,0% 140,0% 2,5 120,0% 2,0 100,0% 80,0% 1,5 60,0% 2.3 1,0 40,0% 0,5 20,0% -0,0% 3Q10
61.8%

62.1%

00,0

48%
6.1% 4.3% 532.9 160.0 181.5 191.4 Nov-Dec/10
814.5

9.8 p.p. 69.5% 59.7%

00,0

7.4% 898.6 447.3 184.1 267.2 2Q11

00,0

00,0

00,0

318.6 205.0 290.8 1Q11

87%

835.1

3
2.5

2.5

2.5

00,0 -

174.6 319.3 3Q11

2.2

00,0

4Q10 1Q11 2Q11 3Q11

Turnover Velocity

retail - day trading (BRL millions) fgn inv - day trading (BRL millions)

local institutions - day trading (BRL millions) % of overall market

Average Market Capitalization (BRL trillions)

46

BM&F Segment Performance

Well positioned to capture growth opportunities
1,30

ADTV in (thds of contracts) and RPC (in R$)

1.17 1.10 1.04

3Q11 Volumes

1,20 1,10

1.13

Overall ADTV up 15.5% over 3Q10 1,00 Higher volumes in BRL interest rate contracts 0,90 Record HFTs volumes, surged 67% from 2Q11 0,80 0,70 Volumes traded in mini-sized contracts and 0,60 stock index derivatives soared 71% and 41% 0,50 from 2Q11, respectively) 0,40

1.11

2,428
286 481 1,661

2,616
293 491 1,833

2,866

2,670
407 543

2,805
469 525 1,810

317 422

2,127

1,720

3Q10

4Q10
Interest Rates in BRL

1Q11
FX Rates

2Q11
Others

3Q11
RPC

HFT: ADTV (thds of contracts) and share of ADTV (%)

ADTV : Mini-sized and stock index (in thds of contracts)

156

BRL Interest rate contracts Index-based contracts

FX contracts % in total ADTV Mini-sized contracts 7.8%

143

420.3 178.7 68.2 148.3

77 84
78

4.6% 197.7 82.7 39.3 70.5 3Q10

5.0% 251.4 93.4 37.7 77.3

4.9 42.5

3.9% 211.5 83.6 43.5 67.0 1Q11

17.1

5.0% 251.3 94.8 45.3 101.1 2Q11

67%

89

77

88

91

101

9.8

24.4

4Q10

3Q11

3Q10

4Q10
Mini Contracts

1Q11

2Q11
Stock Indices

3Q11
47

Revenues and Expenses Details

Consistent growth of other revenues and focus on costs controls
Revenues Breakdown 3Q11
Other revenues

Expenses Breakdown 3Q11

Other

17%
Trd. /Sttmnt Bovespa seg.

Marketing

14%

Personnel

4%
Third Party Serv.

7%
12% 15%

38%
Trd. /Sttmnt BM&F seg.

45%

48%

38%

Depr./ Am.

Data processing

R$ millions

3Q11 3Q10
547.1 248.6 244.9 3.7 205.2 93.3 22.9 19.8 16.2 11.2 23.1 544.1 274.8 232.9 41.9 186.8 82.5 21.4 12.7 15.4 10.9 22.0

Change %
3Q11 x 3Q10

(In R$ millions) 188.7

18.9 9.4

Gross Operating Revenues BOVESPA Seg. (trd. and sttmnt.) Fees from trading and sttmnt. transactions Other (including public offering sttmnt.) BM&F Seg. (trd. and sttmnt) Other operating revenues: Depositary and custody Securities Lending Market data sales Listings Other

0.6% -9.5% 5.2% -91.1% 9.9% 13.1% 6.6% 56.1% 5.7% 2.6% 5.0%

Costs Control Projects re- prioritization

167.6
15.1 5.5

188.7
24.5 22.3

166.8
10.1 10.1

169.6
20.7 8.5

145.8

159.0

140.6

143.7

136.3

3Q10

4Q10

1Q11
Depreciation

2Q11
Stock option

3Q11
Others

Adjusted Operating Expenses

48

Depreciation & Personnel Expenses

Focus on cost control and improvements in processes
Personnel Expenses
(In R$ millions)
Adj. Personnel Stock Options

3Q11 vs. 3Q10: up 12.9% Annual bargain with union of around 7% 15% increase in average headcount (mainly in IT and business development, in line with growth strategy) There was no headcount increase over 2011 3Q11 vs. 2Q11: 8.2% lower Advances in the allocation of personnel expenses related to projects increased the amount capitalized in 3Q11 to R$8.4MM (R$5.5MM in 1Q11 and R$5MM in 2Q11); in addition to reversal of R$3.2MM recorded over 1H11 Reduction in Profit sharing provisions of around R$2.9MM due mainly to market conditions

90.3 71.7

97.5 88.2

9.4

24.5

10.1

81.0

5.5 80.9 72.9 78.0

8.5

66.2

72.4

3Q10

4Q10

1Q11

2Q11

3Q11

Depreciation
22.3 (In R$ millions)

6.8 6.8 15.1 18.9 20.7 15.5 10.1

3Q11 vs. 3Q10: up 37.3% Growth resulting from higher CAPEX in 2010/11 3Q11 vs. 2Q11: up 104.8% Due to improvements in projects accounting processes (R$6.8MM reversion reduced 2Q11 depreciation expenses)

3Q10

4Q10

1Q11

2Q11

3Q11

49

Financial Highlights
Commitment to shareholder returns Cash and Financial Investments
(in R$ millions)

Financial Income

284
3Q11

1,270

468 269

1,487

3,508

R$82.7 million in 3Q11: up 10.3% over 3Q10 Financial Income: R$102.0 million, a 9.9% increase
over 3Q10, due to higher average interest rates paid on interest-earning investments

Financial Expenses: R$19.4 million, compared to

1,712

4Q10

959

496

3,435

R$17.9 million in the 3Q10, due mainly to the debt interest

Market participants cash collateral and others* Restricted funds Subsidiaries** Available funds

Investments (CAPEX) 9M11: R$115MM

(in R$ millions)

Shareholder Returns (Payouts and Buyback Program)

(in R$ millions)
BuyBack Payout

685.5

216.6

235.3

233.6 250.4

44

42

584.2

R$1,269.7
~R$0.65 per share

29

227.7 106.1
1Q11 2Q11

1Q11

2Q11

3Q11

3Q11 9M11

*Includes collaterals pledged by participants in the form of cash, receivables and rights in securities under custody , as well as payouts still undisbursed ** Includes third party collaterals (R$142 million in the 4Q10 and R$119 million in the 3Q11) and restricted funds (R$11 million in the 4Q10 and in the 3Q11) at Banco BM&F

50

Strategic Projects
Growth initiatives and business model strengthening
Multi-asset trading platform (PUMA Trading System): State of the art in trading technology and technological independency Derivates module successfully implemented in 2H11 Equities market to be concluded in 2H12 Improvement to Fee Structure Strengthening the competitive position, eliminating cross-subsidies and aligning with international peers Delivered: i) HFT discount policies in 2010; ii) rebalancing of trading and post-trading fees in 2011

Integration of the four BM&FBOVESPA Clearinghouses efficiency and competitive advantage Pos trading at the beneficial owner level unique model among the major international markets. Contract signed with Cinnober for new clearing system The project development will occur throughout 2012. Integrated market testing and the start of implementation of the new system in production are forecasted to occur in 2013 Market Making for Options on Single Stocks: 4 stocks and Ibov index already launched Index cross listing arrangements with the CME Group and BRICS countries 'exchanges ETFs: two new ETFs recently launched (totaling 10) growth in trading volumes OTC: development of a new platform (contract signed with Calypso)

51

Delivering Strategic Priorities

Consistently increasing revenues and net income

Capture macro growth opportunities Despite challenging short-term macro conditions, the Brazilian capital markets offer good opportunities from which BVMF can benefit in the long term

Strengthening competitive position

New trading System : PUMA Trading System (State of the art in IT): Derivatives module implemented Increasing capital efficiency by integrating clearing facilities Rebalancing the fee structure for trading and post trade activities first stage completed; further studies ongoing

Investing in products and partnerships

Establish a diversified product mix as a driver of long term growth Partnership with CME delivers innovation New Products: market makers, cross listing, ETFs and HFT

Consistently delivering sound financial results

Focus on OpEx Control 2011 Opex Budget revised down Maximizing shareholder returns: high return combining payouts and stock buybacks

52

Income Statement Summary

R$ millions Operating Revenues Gross 3Q11
547.1

3Q10
544.1

Change 3Q11 / 3Q10

0.6%

2Q11
521.3

Change 3Q11/2Q11
5.0%

Net Operating Revenues

Operating Expenses Operating Income Equity accounting Financial Income

493.7
(169.6) 324.1 28.3 82.7

489.3
(167.6) 321.8 23.1 74.9

0.9%
1.2% 0.7% 22.3% 10.3%

467.6
(166.8) 300.9 22.1 70.8

5.6%
1.7% 7.7% 28.1% 16.7%

Income before Taxes

Net Income*

435.1
292.0

419.9
293.0

3.6%
-0.3%

393.8
294.2

10.5%
-0.7%

EBITDA
EBITDA Margin Adjusted Net Income

347.5
70.4% 399.6

338.9
69.2% 389.0

2.5%
113 bps 2.7%

313.2
67.0% 409.2

10.9%
340 bps -2.3%

Adjusted earnings per share (in R$)

Adjusted EBITDA Adjusted EBITDA Margin Adjusted Operating Expenses
* Attributable to BM&FBOVESPAs Shareholders

0.205459
356.0 72.1% (136.3)

0.194071
344.3 70.4% (145.8)

5.9%
3.4% 174 bps -6.6%

0.208948
323.3 69.1% (143.7)

-1.7%
10.1% 297 bps -5.2%

53

Reconciliation of GAAP to Adjusted Net Income

3Q11 GAAP and adjusted net income reconciliation
(in R$ millions)

292.0

124.7

(25.7)

8.5

399.6

Gaap net income

Stock options

Deferred liability

Equity Accounting

Adjusted net income

R$ millions
Gaap net income* (+) Stock options program (+) Deferred tax liabilities (-) Equity accounting (net of taxes) Adjusted net income
*Attributable to BM&FBOVESPA shareholders

3Q11
292.0 8.5 124.7 25.7

3Q10
293.0 5.5 111.6 21.1

Change 3Q11 / 3Q10

-0.3% 55.6% 11.7% 21.4%

2Q11
294.2 10.1 124.7 19.9

Change 3Q11/2Q11
-0.7% -15.7% 29.2%

399.6

389.0

2.7%

409.2

-2.3%

54

Deferred Tax Liabilities Accounting

No impact on cash flow
(in R$ millions)

Deferred tax liabilities

Deffered income tax and social contribution

Deferred tax credits 142 99

111

+18

124

124,7

124,7

-13
1Q11

-26
2Q11 3Q11

55

Reconciliation of Adjusted Operating Expenses

R$ millions
Total Expenses (-) Depreciation

3Q11
169.6 20.7

3Q10
167.6 15.1

Change 3Q11 / 3Q10

1.2% 37.3%

2Q11
166.8 10.1

Change 3Q11/2Q11
1.7% 104.8%

(-) Stock options plan

(-) Tax related to CME dividends (-) Provision for doubtful account Adjusted Expenses

8.5
2.6 1.4 136.3

5.5
2.0 0.8 145.8

55.6%
31.9% -266.7% -6.6%

10.1
2.2 0.6 143.7

-15.7%
18.1% 146.4% -5.2%

56

Balance Sheet
In R$ millions
ASSETS
Current assets

09/30/2011 2,198.4 139.5 1,861.8 197.1 20,946.6 1,683.6 1,506.8 176.8 2,618.0 352.4

12/31/2010

LIABILITIES AND SH. EQUITY

09/30/2011 1,605.2 1,222.3 382.9 2,254.0 1,125.4 1,061.4 67.2

12/31/2010 1,416.2 954.6 461.6 1,798.7 1,010.1 732.1 56.6

2,547.6 Current liabilities 104.0 Collateral for transactions 2,264.4 Others 179.2 Non-current liabilities 20,086.4 Financing 1,216.8 Deferred Inc. Tax and Social Contrib. 1,066.9 Others 149.9 2,286.5 Shareholders' equity 367.1 Capital Capital reserve

Cash and cash equivalents Financial investments Others

Non-current assets

Long-term receivables
Financial investments

Others
Investments Property and equipment

19,285.8 2,540.2 16,679.7 49.4 16.4 23,145.0

19,419.0 2,540.2 16,662.5 200.0 16.3 22,634.0

57

Intangible assets

16,292.7

16,215.9 Others
Minority interest in subsidiaries TOTAL LIAB. AND SHAREHOLDERS' 22,634.0 EQUITY

TOTAL ASSETS

23,145.0