Bolsas y Mercados Argentinos S A : Press Release 2Q23

BYMA announces results for 2Q23

Buenos Aires, Argentina, August 11th, 2023. - Bolsas y Mercados Argentinos S.A. (BYMA: BYMA) reported today financial results for the period of three months ended June 30th, 2023 (2Q23).

In compliance with NIC29, BYMA presented its results adjusted for inflation. The financial statements are all expressed in the currency measure adjusted as of June 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.

Summary of the Financial Statements

April-June 2023 (2Q23)

OVERALL RESULTS

• Excellent quarter, with revenues growing in real terms due to higher business growth, expenditures falling in real terms, and strong financial results.
• Net income adjusted for inflation was positive in ARS 6,356 million, being the third consecutive quarter with positive inflation adjusted results.
• In historical terms (nominal figures, without inflation adjustment) net income was ARS 16,086 million, more than four times the figure registered in 2Q22.
• Operating income, after inflation adjustment, rose 30% y-o-y.
• Operating expenses (excluding D&A), adjusted by inflation fell 10% with respect to 2Q22.
• As this faster growth of revenues over expenditures, LTM EBITDA was 68%, an all-time high.

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BYMA - 2Q23 Financial Results

ARS Million			Historical
	2Q22	2Q23	Var.
CSD Revenues	904	1,911	111%
Exchange Revenues	966	3,323	244%
Income		1,870	5,234	180%
Total Expenses	1,147	2,327	103%
Gross Margin	722	2,906	302%
Other Operating Income	276	2,708	881%
Net Operatig Result		998	5,615	462%
Inflation Adjustment Impact	0	0	0%
Financial Income	2,781	16,386	489%
Oher gains/losses	-25	39	-259%
Participation in other companies	60	-43	-171%
EBT		3,815	21,997	477%
Income Tax	-308	-5,911	1820%
Net Income		3,507	16,086	359%
EBITDA Margin (quarter)		48%	71%

Adjusted by Inflation

2Q22	2Q23	Var.
2,096	2,060	-2%
2,185	3,512	61%
4,281	5,572	30%
-2,994	-2,694	-10%
1,287	2,878	124%
675	3,009	346%
1,962	5,887	200%
-10,033	-14,011	40%
6,367	17,196	170%
18	17	-4%
-15	39	-361%
-1,701	9,129	637%
-339	-2,773	N/A
-2,040	6,356	412%

BUSINESS HIGHLIGHTS: CSD AND EXCHANGE

• Assets under Custody (AUCs, quarterly average), measured in face value were 215% higher than in the same quarter of 2022. This value was lower than in 1Q23 due to a change in the portfolio composition, with less treasury bills and more bonds.
• When measured at market prices (the key driver for invoicing), AuC doubled since 2Q22 (+106%), and were 22% higher since the previous quarter.
• Regarding the Exchange, total ADTV reached an all-time high, with ARS 1,100,737 million, or more than three times 2Q22´s ADTV
• As in the previous quarter, this was explained by higher traded values in all the different asset classes.

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• It is worth mentioning the 295% y-o-y increase in equity ADTV, where both domestic shares as well as Cedears contributed to this increase.
• On-Exchangerepos also experienced a remarkable performance: they were 210% higher than in 2Q22, and 38% above the value of the previous quarter.

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Assets under Custody and ADTV

BYMA	2Q23	2Q22	2Q23/ 2Q22
Assets under Custody (AuC)
Face Value (Quarterly Avg, in millions)	4,280,546	3,539,066	21.0%
Market Value (Quearterly Avg, ARS Million)	23,756,139	11,531,098	106.0%
ADTV (ARS Million)
TOTAL	1,100,737	356,251	209%
Fixed Income	679,742	218,440	211%
Guaranteed Segment	270,555	84,902	219%
Non-Guaranteed Segment	409,187	133,538	206%
Equity	17,339	4,391	295%
On Exchange Repo	396,587	127,961	210%

OPERATING INCOME HIGHLIGHTS (historical values)

• Revenues from the CSD (Caja de Valores) totaled ARS 1,911 million, 111% more than those in 2Q22, and 25% higher than the previous quarter. Even though CSD services explained 73% of total revenue, Registrar and Additional Services shown the higher growth rates.
• Exchange revenues (ARS 3,323 million) were nearly 3.5 times those observed in added up to ARS 2,381 million, against ARS 885 million in 1q22, implying an y-o-y growth of 2Q22 (ARS 966 million), which was explained by higher business activity.
• Exchange revenues represented 63% of operating Income, the largest shares in historical terms. In 2Q22, the share of the CSD and the Exchange were 50% each.
• Other operating income reached ARS 2,708 million, against ARS 276 million in 2Q22.

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CDS and Echange Operating Income

BYMA (ARS Millions)	2Q23	2Q22	2Q23/ 2Q22
Total Revenue	5,234	1,870	180.0%
CSD	1,911.0	903.6	111.5%
ADC Services	1,386.8	686.1	102.1%
ARyP Services	39.6	15.8	149.6%
Additional services	484.7	201.6	140.4%
EXCHANGE	3,322.8	965.9	244.0%
Operationg Fees	3,000.5	816.8	267.4%
Market Data	174.3	79.0	120.6%
Other fees	148.0	70.2	110.9%

FINANCIAL INCOME

• More than +90% of the investment portfolio is dollarized.
• Portfolio rotation and mark to market generated 20% of the results, with rates generating the other 80% of that segment.
• Growth of financial results comes from higher local and global rates

							Financial Income (Million ARS)
																16,386
		FX Difference			Interest and mark to market					8,537
														8,585	9,541
															4,172
													4,358	5,253
2,366			2,189				2,286	2,781	2,258			7,849
						5,370
			763	1,346	962	1,344	1,130	1,360	741	439
1,516		3,332
476	673	592	668	2,342	2,099
849	149	870	1,228	1,545
614				671	539	693
2Q20 3Q20 4Q20		1Q21	2Q21	3Q21	4Q21	1Q22	2Q22	3Q22	4Q22	1Q23	2Q23

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EXPENDITURES

• The increase in OpEx was 12.8 p.p. below annual inflation (115,6%). This was achieved thanks to tighter management of external providers and to the results of other efficiency projects.
• Taxes (IIBB) grew in line with higher invoicing. Interconnection with other CSDs grew in line with higher volumes in international.

BYMA (ARS Millions)

2Q23

2Q22

2Q23/ 2Q22

Total Expenditures	2,327.3	1,147.4	102.8%
Wages and salaries	981.0	524.6	87.0%
Taxes	341.9	142.7	139.5%
Maintenance and amortization	281.4	150.3	87.2%
Consultancy	315.3	249.3	26.5%
Transportation and insurance	14.6	15.1	-3.6%
Interconnection with other CSDs	142.5	51.3	177.6%
Others	250.7	14.0	1693.2%	.

EFFICIENCY

• LTM EBITDA margin reached an all-time-high of 68%. This resulted from revenues growing higher than expenditures.
• The also increasing operating margin (which does nor include financial income), shows the results of higher efficiency and remains above our target of 50%.
• YTD operating margin (54%) was a record for a first semester

		EBITDA Mg. Rolling 12 month			68%		Operating Margin		54%
									63%		64%
56%	58%									59%		42%	38%	37%	39%	41%
		52%	51%			50%
			50%		50%
								49%
					41%
												2018	2019	2020	2021	2022	YTD
2Q20	3Q20	4Q20	1Q21	2Q21	3Q21	4Q21	1Q22	2Q22	3Q22	4Q22	1Q23	2Q23

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