Results

Solid volumes growth in equities and derivatives drove revenue and EBITDA increase

Intense activity in the local equity and debt capital market

Incentive programs offered by B3 are supporting brokerage houses in expanding the clients base in both equity market and Treasury Direct

São Paulo, August 8, 2019 – B3 S.A. – Brasil, Bolsa, Balcão (“B3” or “Company”; ticker: B3SA3) reports today its second-quarter 2019 (2Q19) earnings. Total revenues reached R$1,579.9 million, a 14.0% increase over the same period of the previous year (2Q18), while recurring EBITDA1 totaled R$999.1 million, up by 2.9%. The Company´s recurring net income2 in 2Q19 totaled R$785.4 million.

Chief Executive Officer of B3, Gilson Finkelsztain, said: “The decrease in interest rates continues to propel the Brazilian capital market, as evidenced by the increase in trading volumes and in equity offerings, which already totaled more than R$53 billion in 2019. Together with our clients, we continue to focus on accelerating this development through improvements in products, services and systems, and by introducing incentive programs. Examples are incentives for brokerage firms to expand their client base in the equity market and in the Treasury Direct, which totaled more than R$80 million in the first half of 2019.”

Chief Financial and Investor Relations Officer, Daniel Sonder, added: “The diversification of our revenues across several markets that have performed well and the continued discipline in managing expenses has supported the growth of our operating results. In the first 7 months of the year we have already distributed R$1.07 billion to shareholders through interest on capital, dividends and share buyback.”

Guidance

B3 revised its guidance for adjusted expenses, as consequence of the acquisition of BLK and Portal de Documentos:

- REVISED: Adjusted expenses3 (OPEX): R$1,060 – R$1,110 million (R$1,030 – R$1,080 million previously)
- Depreciation and amortization: R$1,000 – R$1,050 million (reaffirmed)
- Revenue-linked expenses: R$245 – R$265 million (reaffirmed)
- Capital expenditures (CAPEX): R$250 – 280 million (reaffirmed)
- Indebtedness at YE19: up to 1.5x Gross debt / recurring LTM EBITDA (reaffirmed)
- Distribution to shareholders: 120% - 150% of IFRS net income (reaffirmed)

More details on Company’s guidance are available on the Material Fact released on August 8, 2019.

Noteworthy 2Q19 events – at a glance:

• Tax line in comparison with the 2Q18 was impacted by the distribution of interest on capital (R$395.0 million in 2Q19 versus R$652.0 million in 2Q18).
• R$57.8 million in discounts and rebates to incentivize brokerage firms in expanding the individual investor base in the equity depository (R$14.7 million in discounts) and Treasury Direct (R$43.1 million in rebates in 2Q19).
• Expenses impacted by the market price of B3SA3 share: o R$27.7 million from provisions for legal disputes, for which a portion of the amount under discussion is updated according to the market price of B3SA3 (in 2Q18, the reversal of this provision reduced expenses in R$32.4 million).

o Personnel expenses related to long-term stock-based compensation, reached R$37.9 million in 2Q19 in comparison with R$13.8 million 2Q18.

To view the complete report of the Earning Results of B3 for the Second Quarter of 2019, please click here.

B3. With the market. For the future.

www.b3.com.br