• Revenues up in all segments: Cetip Financing +17.8%; Bovespa +13.2%; Other revenues +11.7%; Cetip Securities +5.1%; and BM&F +4.7%
• 2Q17 results were impacted by: (i) non-recurring expenses of R$145.3 million related to the business combination with Cetip; (ii) beginning of the amortization of intangible assets created in the transaction; and (iii) non-recurring tax-related provision of R$94.1 million (R$ 87.8 million after taxes) due to the decision to join the PERT tax relief program
• 2Q17 recurring net income from operations reached R$475.7 million, while adjusted EBITDA1 was R$675.5 million

Brasil, Bolsa, Balcão (“B3” or “Company”; ticker: BVMF3) reported today its second-quarter earnings for the period ending on June 30th, 2017 (2Q17). Total revenues reached R$1,079.2 million in 2Q17, an increase of 8.9% versus the same period of the previous year (2Q16), with higher revenues in all business segments.

B3 reaffirms its previously announced 2017 budget ranges for adjusted expenses2 (OPEX) and adjusted capital expenditures3 (CAPEX), as follows:

• Adjusted OPEX budget for 2017: between R$1,050 and R$1,100 million. In addition, depreciation and amortization expenses should range between R$790 and R$840 million, including amortization of intangibles; and
• Adjusted CAPEX budget for 2017: between R$250 and R$280 million.

Highlights of 2Q17:

• Average daily volume (ADV) in the BM&F segment was 36.5% higher than in 2Q16 while average revenue per contract (RPC) was down 22.8% year-over-year (yoy);
• In the Bovespa segment, average daily trading value (ADTV) grew 18.8% over 2Q16, while trading and post-trading margins decreased 1.7% yoy;
• In the Cetip Securities segment, fixed income instruments registration and maintenance (CSD and TR) volumes were up by 8.4% and 16.8%, respectively, mostly driven by time-deposits (CDBs) activity;
• In the Cetip Financing segment, the number of vehicles financed grew by 7.6%, reflecting growth in the number of vehicles sold and increased credit penetration in this market; and
• R$81.6 million in interest on capital (IoC), totaling 50% of 2Q17 IFRS net income.

Chief Executive Officer of B3, Gilson Finkelsztain, stated: “Currently, our number one priority is delivering the seamless integration of BM&FBOVESPA’s and Cetip’s businesses into one company, B3. In 2Q17, we concluded the legal merger of Cetip and made relevant progress on several fronts of the integration process, which include, but are not limited to, client relationship, HR and IT solutions. Additionally, we continue to move forward with our strategic projects. In June, enhancements to Novo Mercado’s rules were approved, a great achievement that shows the continued improvement of the Brazilian capital markets. Better corporate governance standards provide more transparency and will attract more investors. We are also pleased to have seen more companies come to the market for IPOs and follow-ons and hope this will continue in 2H2017 and beyond.”

Chief Financial Officer, Daniel Sonder, remarked: “In 2Q17, increased volatility caused by uncertainties in the political scenario propelled volumes in both equities and derivatives markets, while we also have started to observe signs of recovery in the vehicle financing market. We continue to exercise discipline in our expense management and we are focused on capturing the synergies of the merger as guided. We are planning to distribute 50% of our IFRS net income through interim IoC payments and to evaluate an additional payout at the end of the year, reinforcing our commitment to return capital to our shareholders.”