Results

São Paulo, Brazil, May 9th, 2019 - B3 S.A. – B3 S.A. – Brasil, Bolsa, Balcão (“B3” or “Company”; ticker: B3SA3) reports today its first-quarter 2019 (1Q19) earnings. Total revenues reached R$1,531.9 million, a 24.1% increase over the same period of the previous year (1Q18), while recurring EBITDA totaled R$970.8 million, up by 27.7%. The Company´s recurring net income in 1Q19 was R$736.5 million.

Chief Executive Officer of B3, Gilson Finkelsztain, said: “In 2019, we continue to execute on our strategic plan and consolidate our corporate culture. Both are centered on delivering better services and products to our clients by meeting their demands in terms of prioritization of developments and assuring the operational resilience of our IT platforms and risk systems. In these first months of the year, we are excited to have implemented a new customer service governance, aiming to improve clients’ experience when using B3’s services and systems and therefore their level of satisfaction.”

added: “We had another quarter of strong cash generation. In line with our guidance on financial leverage, in May (after the closing of the financial quarter) we raised R$1.2 billion through the issuance of debentures in the local market. We are improving the Company’s capital structure while preserving the high quality of our balance sheet and increasing cash distributions to our shareholders”.

Guidance

B3 revised its guidance for depreciation and amortization, mainly as consequence of adjustments on the amortization curve of intangible assets recognized in the business combination with Cetip. Other guidance are reaffirmed.

- REVISED: Depreciation and amortization:  R$1,000 – R$1,050 million (R$950 – R$1,000 million previously)
- Adjusted expenses (OPEX): R$1,030 – R$1,080 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 .

Noteworthy 1Q19 events – at a glance:

• Distribution of R$395.0 million in interest on capital (IoC) in the first quarter with impact in the tax line 
• Issuance of debentures of R$ 1.2 billion in May, in line with new guidance on financial leverage
• As previously announced, B3 started to adopt a new revenue segmentation in 1Q19 that better reflects its current business model. To allow comparability, B3 will continue to disclose the old revenue segmentation  during this year  and make available a reconciliation of these changes and historical data on the Investor Relations website.

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

B3. With the market. For the future.