Bolsas y Mercados Argentinos S A : Press Release 1Q23

BYMA announces results for 1Q23

Buenos Aires, Argentina, May 12th, 2023. - Bolsas y Mercados Argentinos S.A. (BYMA: BYMA) reported today financial results for the period of three months ended March 31st, 2023 (1Q23).

In compliance with NIC29, BYMA presented its results adjusted for inflation. The financial statements are all expressed in the currency measure adjusted as of March 2023. This includes both the figures for 2023 as well as those for 2022.

The numbers presented herein are mostly historical figures. Those that are adjusted for inflation are clarified in each case.

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Summary of the Financial Statements

Jan -Mar. 2023 (1Q-23)

OVERALL RESULTADS

• Net income adjusted for inflation was positive at ARS 1.720 million, being the second consecutive quarter with positive adjusted results.
• In historical terms (i.e. without inflation adjustment) net income was ARS 11.455 million, which is 362% higher than the same figure for 1Q22, showing a very high real increase.
• The increase in operating revenue was explained by the strong growth in business volumes, whereas the financial income comes as a result of the higher interest rates, both international as well as domestic.
• Operating expenses (excluding D&A) adjusted for inflation fell 8% with respect to 1Q22.
• As a result of the above, LTM EBITDA was 64%, one of the highest values ever for BYMA.

ARS Million			Historical
	1Q22	1Q23	Var.
CSD Revenues	780	1,523	95%
Exchange Revenues	885	2,381	169%
Income		1,665	3,904	134%
Total Expenses	-1,095	-1,887	72%
Gross Margin	570	2,018	254%
Other Operating Income	140	1,769	1164%
Net Operatig Result		710	3,787	433%
Inflation Adjustment Impact	0	0	0%
Financial Income	2,286	9,541	317%
Oher gains/losses	-13	-35	172%
Participation in other companies	52	92	77%
EBT		3,035	13,385	341%
Income Tax	-555	-1,930	248%
Net Income		2,480	11,455	362%
LTM EBITDA Margin		50%	64%
Operating Margin		34%	52%

Adjusted by Inflation

1Q22	1Q23	Var.
1,690	1,618	-4%
1,911	2,554	34%
3,601	4,172	16%
-2,543	-2,346	-8%
1,058	1,826	73%
327	1,971	503%
1,385	3,797	174%
-7,933	-10,518	33%
4,867	10,150	109%
12	11	-10%
30	92	204%
-1,639	3,532	315%
-1,038	-1,812	N/A
-2,677	1,720	164%

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BUSINESS HIGHLIGHTS: CSD AND EXCHANGE

• Assets under Custody (AUCs, shown as quarterly average) grew 37% YoY measured by face value, representing the highest historical value. They grew 23% Q-o-Q and were explained by the growth in Public Debt issuance.
• When measured at Market prices, AuC nearly doubled since 1Q22 (+99.6%), and were 28% higher than the previous quarter.
• Regarding the Exchange, total ADTV also reached an all-time high, with ARS 789,992 million, or 197% above 1Q22's ADTV.
• This increase was explained by higher traded volumes across all asset classes.
• It is worth highlighting the 212% YoY increase in fixed income ADTV, where the non-guaranteed segment in particular showed a hike of 242%.
• ADTV of equity (both domestic and Cedears) went up by 129% when compared to 1Q22, and up by 46% against 4Q22.
• On-Exchangerepos also experienced a remarkable performance: they were 184% higher than 1Q22, and 47.5% above the value of the previous quarter.

Key Business Drivers

BYMA	1Q23	1Q22	1Q23/ 1Q22
Assets under Custody (ARS Million)
Par Value (Millions)	4,331,621	3,155,627	37.3%
Market Value (ARS Million)	19,448,151	9,745,906	99.6%
ADTV (ARS Million)
TOTAL	789,992	266,120	196.9%
Fixed Income	496,775	159,145	212.2%
Guaranteed Segment	181,932	53,118	242.5%
Non-Guaranteed Segment	314,843	106,028	196.9%
Equity	11,161	4,876	128.9%
On Exchange Repo	277,693	97,802	183.9%

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OPERATING INCOME HIGHLIGHTS (historical values)

• Revenues from the CSD (Caja de Valores) totaled ARS 1,523 million, 95% more than those of 1Q22. Even though ADC Services accounted for 70% of total revenue, all business lines experienced significant growth.
• Although less important in relative terms, it is worth mentioning the increase in revenues in the Additional Services line, due to higher activity levels.
• Exchange revenues added up to ARS 2,381 million, against ARS 885 million in 1q22, implying a YoY growth of 169%, showing also an increase in real terms.
• Higher revenues from the Exchange were associated to the higher level of traded values previously mentioned.
• Exchange revenues represented 61% of operating Income, while the remaining 39% belonged to the CSD. This shows a higher contribution to the business of the Exchange when compared to 1Q22, when these shares were 53% and 47%, respectively.
• Other operating income reached ARS 1,769 million, against ARS 140 million in 1Q22.

Operating Income

BYMA (ARS Millions)	1Q23	1Q22	1Q23/ 1Q22
Total Revenue	3,904.1	1,664.4	134.6%
CSD	1,523.1	779.7	95.3%
ADC Services	1,077.3	566.2	90.3%
ACRyP Services	34.9	13.8	153.2%
Additional services	411.0	199.7	105.8%
EXCHANGE	2,381.0	884.7	169.1%
Trading C&S fees	2,117.9	758.5	179.2%
Market Data	149.7	75.4	98.5%
Other fees	113.4	50.7	123.7%

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FINANCIAL INCOME

More than 90% of our portfolio continues to be dollarized.

Nearly two thirds of financial income was explained by higher interest rates, while the remaining were due to the sale of assets and mark-to-market.

						Financial Income (ARS Million)				9,541
																8,585
																	4,172
																5,253
														4,358
2,366						2,189						2,286	2,781	2,258		5,370
										439
		1,346			1,344				1,360	741
1,516	763		962	1,130				3,332
	476			673	592	668	1,545	2,342	2,099
	149		1,228
849	870		671	693
614			539
2Q20	3Q20	4Q20	1Q21	2Q21	3Q21	4Q21	1Q22	2Q22	3Q22	4Q22	1Q23
						FX Difference			Interest and mark to market

EXPENSES

• Total expenses reached AARS 1,886 million, against ARS 1,095 million in 1Q22, or 72.2% y-o-y, which implied a growth of 32 percentage points below the y-o-y inflation rate.
• This reduction in expenses was mainly due to the reduction in consultancy for technology projects which, in turn, was achieved by hiring more cost-effective suppliers and a more efficient software development process.
• Taxes (IIBB) went up significantly because of higher financial results as well as the increase in revenues. Expenses for connection with other CSD were up since 1Q22 due to higher traded volume.

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