Bolsa Mexicana de Valores, S.A.B. de C.V.

Greetings and welcome to the Bolsa Mexicana de Valores SAV-DCV First Quarter 2026 Earnings Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Mr. Ramon Gomez. Chief Financial Officer. Thank you, sir. You may begin.

Thank you. Good morning, and welcome to Bolsa Nigena de Valores First Quarter 2026 Earnings Conference Goal. Before proceeding, I'd like to provide a brief safe harbor statement. This presentation contains forward-looking statements and information related to Bolsa that are based on the analysis and expectations of its management, as well as assumptions made and information currently available at Bolsa. Such statements reflect the current views of PULSA related to future events and are subject to risk and uncertainties. Many factors could cause the current results, performance, or achievements to be somewhat different from any future results or performance that may be expressed or implied by such forward-looking statements, including, among others, changes in general, economic, political, governmental, and business conditions, both in a global scale and in the individual countries in which PULSA does business. such as changes in monetary policies, inflation rates, prices, business strategy, and various other factors. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary considerably from those described herein as anticipated, estimated, expected, or targeted. Folsom does not intend and does not assume any obligation to update this forward-looking statement. I'd like to remind participants that today's call is being recorded with a replay available online on April 23rd at Pulse's corporate website, www.dmv.com.mx. The press release and slide deck can also be accessed in the investor relations section in the same site. This call is intended for the financial community only, and the floor will be open at the end to address any questions you may have. Joining us for today's call are Jorge Alegria, our CEO, Claudio Vivian, Chief Information Officer, Roberto Gonzalez, Chief Post-Grade Officer, Gabriel Rodriguez, CPICAP CEO, Alfredo Guillen, Managing Director Equity Markets, Jose Miguel Rios, Managing Director Derivatives Markets, Luis Rene Ramon, Managing Director Sales and Marketing, Jana Rivas, SPNA and IR Director, and myself, Ramon Guemes. With that, I'd like to turn the call over to Jorge Alegria. Thank you.

Thank you, Ramon. Good morning, everyone. As you are likely aware, yesterday, besides the financial results, we also announced that after 18 years in the exchange and 13 years as a CFO, Ramon has decided to secretly retire from B&B and focus on new personal and professional endeavors. I want to thank him for his many contributions during this tenure as both an IRO and CFO. On a personal note, I started collaborating with Ramon during the IPO Roadshow back in 2008. So, I wish him well, and I am very proud and happy to see him leave as a good friend of the Mexican licensing. Also yesterday, as mentioned, we released our earnings results, including a detailed review of our performance in the first three months of 2020. To begin with, I would like to highlight strong operating results achieved this quarter. These were driven by market volatility, also from international geopolitical events, as well as a market that continues to show increased dynamism generating favorable effects across the entire value chain, from financing to settlement and custody. Financing activity rose by 84% in the first quarter of 2026 when compared to the same period of 2025. representing an additional 105 billion pesos of financing and reaching a total of 230 billion pesos. This is led by a 270% increase in long-term debt financing, which reached 146 billion pesos, while the number of new listings increased 200% from 11 to 33. we had two FIBRAS or REIT deals for 9 billion pesos. The new FIBRA Park Life and a follow-on on FIBRA Monterrey. Short-term debt listings remain constant even though the amount financed was lower than last year. The financial impact of these operations and this activity is partly reflected in a 53% or 8 million pesos growth in our listing revenues. However, we will see the largest impact next year reflected in maintenance revenues for 2027 onwards. We now have 580 long-term programs totaling at 1.8 trillion pesos. Both are record numbers. And as you know, I mentioned the revenue impact for this year is limited due to the cap we have on listings. This strong performance reflects issuers growing trust and highlights the role of the Mexican stock exchange in efficiently channeling capital towards productive investments. In the equity market, we saw both local and global momentum with average daily trading volume and value approaching 21 billion pesos. This is over 20% when compared to 2025 and one of the highest levels in recent years. along these same lines, activity in our CCP, the CCB for equities, also grew by over 20%, both in amounts and operations cleared. Growth was also evident in futures trading, particularly in the dollar-peso contract, where the activity doubled when compared to Q1 2025. This is supported by peso appreciation and other market volatility factors already explained. We have continued with our efforts to lease new equity contracts, joining the ranks of previously listed names such as Apple, Nestle, Netflix, Nvidia, and Tesla from our SICK cash equity trading division. But in the event of clearing growth, this was impacted by reduced margin deposits So, in spite of the increased trading volumes, we had a small net negative impact in Asigna because of the reduction of the margins managed. Indeval reaffirmed its strength during quarter, excelling in three key areas. Assets on the custody, settlements, and cross-border transactions through the SIC. Assets on the custody rose 14% driven mainly by funds, pension managers, and equities, reaching 47 trillion pesos. Settlements average 11 trillion pesos per day, and this is a 25% increase in market instruments, in equity market instruments, reflecting the segment's demand. Volatility during the period provided additional momentum to cross-border transactions of usage and ETF via the SIC, which grew 29% in trade value and 45% in the number of operations, consolidating in the role as a key player in international market integration. Overall, Q1, 2026 was particularly solid for Grupo BNB with outstanding operating performance across multiple business lines. This confirms the resilience of our business model, which remains robust and consistent across diverse scenarios. And this performance is reflected also in our financial results as follows. Our revenues grew 7% of 83 million pesos driven mostly by the volatility mentioned before. Growth was concentrated in interval, which saw strong growth in assets under custody, as explained, settlement activity, and cross-border transactions. Cash equity trading and clearing, which combined grew 19%, as explained, due to the daily average trading volume increase. and we are maintaining our market share of around 80% in equity trading. Lifting revenues are 53% above Q125 due to the strong lifting activity I mentioned, and as I said, the most important impact for this will be next year reflected as maintaining revenues. In derivatives, we saw strong performance in Negrer with a peso dollar contract driving revenue growth of 24%, However, reduced margin deposits are affecting a little bit of revenues in Africa. C5 cap's good results are worth mentioning. In Mexico, revenues grew 12%, and we have very good results in our bond and on our D2C debt. While in Chile, even though the revenues are down, we have a very, very strong activity in March. Expenses are growing by 10%. led by personal and technology costs, both of which reflect investments in our strategic project made last year. This expense level is in line with our plans for this quarter, and the growth rate is also in line with our expectations, which we have shared with you in the past, along with the investments in our strategic projects, where we continue and will continue with our cost control efforts across the company. CapEx for this quarter was 41 million, and not because we are slowing down in any way, but because of the timing of the payments to be made in our CapEx plans for this year. With this, we have an FBA of 685 million, 6% above last year, while the margin is 56.5%, one percentage point below. To properly analyze this number, we have to take into account the appreciation of the currency, almost three pesos versus Q1 of 2025. This is an impact of around 40 million pesos in our ADBA. Our net income was 437 million, same as last year. And the difference between the EBITDA growth and the flat net income is explained by the lower interest rate income. Interest rates, as you may recall, for the quarter fell from 10% last year to 7% this year. Looking ahead, our priority for 2026 is the execution of our strategic project that will strengthen our infrastructure. broaden our portfolio, and deepen our integration into global markets. Building on this priority, I would like to share progress on the two main initiatives scheduled to be released by year-end, the new derivatives market platform and the new repo clearing segment. The derivatives platform is a transformative project for our group. It integrates measure operations a signal clearing, market surveillance, and a new data offering, all supported in the cloud. Execution follows a defined plan, technical testing beginning June, and will be followed by functional testing with market participants in September. This will progress from isolated files to comprehensive system-wide validation. The project is set to conclude on Q4 2026 and go live on Q1 2027. Currently, we have working groups with trading firms and trading members, which are addressing anticipated changes, the challenges, the implications, and market alignment. The repo trading segment will be incorporated into our CCD service portfolio, end-to-end industry testing is scheduled for Q3 2026 as well. with design completions targeted for December this year. This initiative, the repo clearing, follows the same agile methodology applied to other projects. We expect to have a much faster adoption in this segment because of the reduced capital requirements and benefits it will bring to market participants. Both of these projects are supported by a dedicated project management office and multidisciplinary teams, including experts in operations, products, technology, and data, alongside representatives from compliance, internal lobbies, finance, and legal. So this structure ensures orderly execution, comprehensive risk and opportunity assessment, and a strict adherence to corporate governance standards. So beyond these initiatives, We are also advancing on our broader portfolio of projects within the digital evolution program. Altogether, they represent a comprehensive transformation for B&B Group, modernizing our infrastructure, expanding our reach, and reinforcing our role as the backbone for Mexico's financial system. With discipline, innovation, and , we are shaping the future of market infrastructure and creating lasting value for all participants. With that, I conclude our remarks for the quarter. We remain focused on executing our priorities with discipline, advancing our key initiatives, and adapting to evolving market conditions. Thank you again. to all of you for joining, and together with my colleagues, we are more than glad to address any questions you may have. Thank you very much again.