Q2 2025 Bolsa Mexicana de Valores SAB de CV Earnings Call

July 23, 2025

Operator: Greetings. Welcome to Bolsa Mexicana de Valores Q2 2025 Earnings Conference 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, please press star 0 on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Ramón Plumas, CFO. Thank you. You may begin.

Greetings, welcome to blows of Mexicana developers second quarter 2025 earnings conference 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, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Raymond KZ. CFO. Thank you. May begin.

Ramón Güémez Sarre: Thank you. Good morning and welcome to Bolsa Mexicana de Valores Second Quarter 2025 Earnings Conference Call. Before proceeding, I would 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 Bolsa related to future events and are subject to risks, uncertainties, and assumptions.

Thank you. Good morning and welcome to BSA Michigan quarter 2025 earnings conference call.

Before proceeding, I would like to provide a brief Safe Harbor statement.

This presentation contains forward-looking statements and information related to bolts that are based on the analysis and expectations of its management.

As well as assumptions made and information currently available at bulsa.

Ramón Güémez Sarre: Many factors could cause the current results, performance, or achievements of Bolsa to be somewhat different from any future results, performance, or achievements that may be expressed or implied by such forward-looking statements, including, among others, changes in the general economic, political, governmental, and business conditions, both in a global scale and in the individual countries in which Bolsa does business, such as changes in monetary policies, inflation rates and prices, and business strategy and various other factors. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, the actual results may vary considerably from those described herein as anticipated, believed, estimated, expected, or targeted. Bolsa does not intend and does not assume any obligation to update these forward-looking statements.

Such a statement, reflect the current views of bulsa related to future events on our subject to risk, uncertainties and assumptions.

Many factors could cause the current results performance or achievements of bulsa to be somewhat different from any future results, performance or achievements, that may be expressed or implied by such forward-looking statements.

Including among others changes in the general economic political governmental and business conditions, both in a global scale and in the individual countries in which Pulsar does business.

Such as changes in monetary policies and inflation rates in prices and business, strategy, and various other factors.

Should 1 or more of these risk or uncertainties materialize or should underlying assumptions proved incorrect.

The actual results May Vary considerably from those described here in as anticipated. Believed estimated, expected or targeted.

Bolster does not intend and does not assume any obligation to update this forward-looking statements.

Ramón Güémez Sarre: I would also like to remind participants that today's call is being recorded and a replay of this call will be available online on 24 June at Bolsa's corporate website, www.bmv.com.mx. 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 Alegría, Chief Executive Officer, Alfredo Guillen, Managing Director of Equity Markets, Claudio Vivian, Chief Information Officer, Gabriel Rodriguez, Sif Icap CEO, José Miguel de Dios, MexDer CEO, Roberto González Barrera, Managing Director of Trustry and Chief Information Post-trade Officer, Refene Ramon, Chief Marketing Officer, Jose Manuel Olivo, Managing Director of Listing Services, Hanna Rivas, SPNA and IR Director, and myself. I would now like to turn the call over to Jorge Alegría.

I would also like to remind our participants that, the day school is being recorded and a replay of the school will be available online on June 24th at Paws, corporate website, www.dnb.com MX

the school 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.

Speaker Change: Chief executive officer. Alfredo Jen.

Claudia: Managing director of equity markets. Claudia Chief Information officer.

Gabriel Rodriguez: Gabriel Rodriguez, CEO.

Roberto Gonzalez: Roberto Gonzalez VA.

Gabriel Rodriguez: uh, managing director of

Gabriel Rodriguez: Trustee and post Chief Information. Post trade officer.

Speaker Change: Chief marketing officer.

Speaker Change: Managing director of listing services and myself.

Speaker Change: I would now like to turn the call over to quora.

Jorge Alegría: Thank you, Ramón. Good morning, everyone. I hope you are all doing well today. As you know, we released our earnings results yesterday evening, providing comprehensive details on the Q2 2025 results. The copies of our press release and the slide deck are available at www.bmv.com.mx under the investor relations tab. During today's call, I will first review our ongoing initiatives, then briefly comment on our financial results. We will conclude with a Q&A session where we are more than glad to take your questions via the conference call line. Let me begin this call with a short reminder on my vision for the future of our group.

Speaker Change: Thank you, Ramon and good morning everyone.

Speaker Change: I, I hope you are all doing well today. And as you know, we released our earnings results. Yesterday evening, providing a comprehensive details on the second quarter of 2025 results.

Speaker Change: The the copies of our press release and slide deck are available at bmv.com.mx under the investor relations stock.

Speaker Change: Um, during today's call, I will first review our ongoing initiative and then briefly comment on our financial results.

Speaker Change: Then we will conclude with a Q&A session where we are more than glad to take your questions uh via the conference call line.

Jorge Alegría: My priority is to transform the company into a market leader by launching innovative services across all business areas, supported by top-line technology and improved infrastructure, add high value data with a strong focus on client development and strategic partnerships. We aim to expand our reach to attract new segments and drive sustainable growth. I would like also to share some very good news. As some or many of you will know, I'm thrilled to announce that after years of inactivity in the Mexican IPO market, we will be having soon a new transaction. Actually, it should happen in the next few days, we will be having the Fibra or the REIT NEXT, the Fibra NEXT IPO here at BMV soon. Not only that, we also have 5 confidential filings for equity IPOs in the pipeline. One of them under the simplified issuance regime.

Speaker Change: Let me, let me begin, uh, this call with a short, reminder, on my vision for the future of our group.

Speaker Change: My priority is to transform the company into our market leader by launching Innovative Services, across all business areas supported by Topline technology and improved infrastructure.

Speaker Change: Add high value data with a strong focus on client development and strategic Partnerships.

Speaker Change: We aim to expand our reach to attract new segments and drive sustainable growth.

Speaker Change: I would like also to share some very good news, uh, as as some or many of you will know, I'm thrilled to announce that after years of inactivity in the Mexican IPO Market we will be uh having soon a new transaction actually, it should happen in the next few days and we will be having the fever or the RIT next fever. And next IPO here at VNV soon.

Speaker Change: And not only that, we also have 5 confident for Equity, IPOs in the pipeline.

Jorge Alegría: These are very encouraging news. We expect to see this happening hopefully this year, in the next months. All these, I'm sure you will agree with me, are great news for our markets. Now, I would like to briefly address also the situation of three financial institutions which are currently under government intervention. I would like to take advantage of this opportunity to reaffirm the strength and stability of Grupo BMV. All trading and clearing processes have worked accordingly without any contagion across markets. However, there are still challenges ahead which must be addressed before the September deadline imposed by the US financial authorities. Together with local authorities, we are monitoring closely all the situation. These events have highlighted the relevance of the role of a central counterparty in the stability of financial markets.

Speaker Change: 1 of them under the simplified listing regulation. So these are very very encouraging news. We expect to see this happening in the hopefully this year in the next months. And and all these are I'm sure you will agree with me are great news for our markets.

Speaker Change: Now, I would like to briefly address. Also the situation of 3 financial institutions which are currently under government intervention.

Speaker Change: I would like to take advantage of this opportunity to reaffirm the strength and stability of BNB group.

Speaker Change: All trading and cleaning processes have worked accordingly without any contagion across markets. However, there are still challenges ahead which must be addressed before the September deadline imposed by the US Financial authorities.

Speaker Change: Together with local authorities, we are monitoring closely all the situation.

Speaker Change: These events have like have lighted. The relevance of the role of a central counterparty in the stability of financial markets.

Jorge Alegría: Now more than ever, we are witnessing the importance of mitigating settlement and credit risks across all markets. With a CCP in place, it would have been easier to absorb the impact with minimal effect on overall market stability. With this in mind, our efforts are not only focused on the starting operations of our bond CCP as soon as possible, but also on expanding the scope to other securities and repos. Let me continue on this on our bond CCP project, which is approaching the final stage of the regulatory audit and regulations in line with the planned agenda. Two successful VFP tests have been executed where we accredited our capacity to isolate incidents between the equity and the bond segments. Potential clearing members, interdealer brokers, our equity CCP, and Indeval, together with Mexican authorities, participated in these tests.

Speaker Change: Now more than ever, we are witnessing the importance of mitigating settlement and crazy risks across all markets.

Speaker Change: With a CCP in place.

Speaker Change: It would have been easier to absorb the impact with minimal effect on overall Market stability.

Speaker Change: With this in mind, our efforts are not only focused on the start starting operations of of our bond CCP as soon as possible, but also on expanding the scope to other Securities and repos.

Speaker Change: Let me continue on this uh on our bond CCP project which is approaching this, the final stage of the regulatory audit and regulations in line with the plant agenda.

Speaker Change: 2 successful. VIP tests have been executed where we accredit our capacity to isolate incidents between the equity and the bond segments.

Jorge Alegría: Additionally, we are also testing our clearing and risk management processes in our quality system to ensure a smooth kickoff. Participants are finally reviewing documents in preparation for deployment. The approval to go live will follow once the audit is closed, which is expected to happen during this month of August. The other project that we have been commenting here is the liquidity alternative for Asigna that is progressing gradually. Clearing members are preparing their regulatory documentation as well. Then they will need to have this documentation approved by the regulator. Even though this is moving slower than I expected, I can tell you that the regulator is very supportive of the initiative. When it's implemented, it is expected to attract volume from OTC markets, mostly Afores, two, MexDer and Asigna clearing.

Potential clearing members, inter delay, Brokers our equity, and CCP and intervals, together with Mexican authorities. Participated in this test. Additionally, we are also testing our cleaning and risk management processes in our Quality Systems to ensure a smooth kickoff.

Speaker Change: Participants are finally reviewing documents in preparation for deployment.

Speaker Change: So the approval to go live will follow. Once the audit is closed, which is expected to happen during this month of August,

Speaker Change: The other project that we have been commenting. Here is the liquidity alternatives for a signal that is progressing, gradually. Creating members are preparing their regulatory documentation as well. Um, we then they will need to have this, uh, documentation approved by the regulator.

Jorge Alegría: Of course, we will continue to share updates as all these things move forward. Another important topic which I want to give you an update is the new fee schedule for our equity trading segment. We are providing additional information to our regulators, expecting to have the final approval soon. However, one key point to emphasize is that the initial impact of the fee reduction has gradually faded away. As current data confirms, we are recovering our market share to 81% of the market. Once approved, we will implement the adjustments if needed gradually to avoid reducing fees more than necessary. Of course, we continue working closely with our regulators, not only on this issue, but also on the new hedge fund regulation that has been discussed in the industry.

Speaker Change: Even though the this is moving slower than I expected, I can tell you that the regulator is very supportive of the initiative 1 is implemented. It is expected to attract volume from multi markets. Mostly a forest to make their and a sigma clearing.

Speaker Change: Of course, we we continue to share updates as all these things move forward.

Speaker Change: Another important topic which I want to give you an update. Is the new fee, scheduled for our Equity trading segment.

Speaker Change: Covering data confirms, we are recovering our market share to 81% of the market once approved. We will implement the adjustments. If needed gradually to avoid reducing fees more than necessary.

Speaker Change: Of course we continue working closely with our Regulators, not only on this issue, but also on the new hedge, on the new hedge fund regulation that has been discussed in the industry.

Jorge Alegría: We have made progress in our, in the derivatives market as well, where we receive approval to list new futures and options on the 6th segment of the exchange, on the Mexican derivatives exchange, on MexDer. We will have contracts on Tesla, Netflix, Meta, and Apple soon available for our local customers. On the derivatives segment, we have been actively looking for ways to improve liquidity, as you may know. First of all, I'm pleased to share that on 18 August, the S&P/BMV IPC Index future contract will be listed on CME. This effort seeks to enhance the liquidity and visibility of our main index, positioning as the leading and most representative benchmark of the Mexican equity market.

Speaker Change: We have made progress in our, in the, derivatives Market as well, where we receive approval to lease new, uh, Futures and options on the 6 separate exchange, uh, on the Mexican derivative system. So, next

So we will have contracts on Tesla Netflix, meta and apple uh soon available for our local customers.

Speaker Change: And also under the derivative segment. We having actively looking for ways to increase liquidity as you may know. First of all, I'm pleased to share that on August 18th. The S&P BNB IPC index, future contract will be listed on CME.

Jorge Alegría: This licensing process, we expect to be very successful to add strengths in our global presence and facilitate access for international investors seeking exposure to Mexico. On our efforts to promote the retail market, we have been working on several fronts as well to make market entry easier for this segment. We started by adjusting Indeval conversion fee on the SIC market. Under this new fee structure, trades below $5,000 will be free of charge, a change effective from 2 June. This is the conversion fee on Indeval. This initiative makes retail trading more accessible by significantly lowering the cost of end users. Our next step was the 65% reduction in market data fees for retail platforms. The idea behind this initiative is to make market information more accessible and affordable for retail investors with little impact on our top line.

Speaker Change: This effort seeks to enhance the liquidity and disability of our main index positioning as the leading, and most representative Venture of the Mexican Equity market. So, these licensing processes, we expect to be very successful to add strengthens and in our Global presence and facilitate access for international investors, seeking exposure, to Mexico.

Speaker Change: Well, not the effort to promote the retail Market. We have been working on several fronts as well to make Market entry easier for this segment.

Speaker Change: We started by adjusting individual conversion, fee on the sick Market.

Speaker Change: So, under this new fee structure trade below, 5,000 will be free of charge, a change effective from June 2nd. This is the

Speaker Change: conversion fee on in the van,

Speaker Change: This initiative makes retail trading more accessible by significant significantly lowering the cost of end users.

Speaker Change: Our next step was the 65% reduction in Market data fees for retail platforms. The idea behind this initiative is to make Market information, more accessible and affordable for retail investors with little impact on our top lines.

Jorge Alegría: Additional initiatives are on the way to support small and medium-sized companies. In collaboration with the Brokerage Association and their research partner, Indecpi, we will soon begin publishing investor-focused reports aimed at increasing the visibility of these companies in the market, including the debt segment. Another initiative which, I'm sure you are all well-acquainted, is the simplified listing regime. As I mentioned before, we now have a company in the final phase of listing in BMV expected to occur hopefully later this year. There are other potential companies on this path, and we continue actively promoting and providing training to potential issuers. Let me move to our technology initiatives. Last year, Grupo BMV embarked on a journey to shape the next generation of our business and operational model.

Speaker Change: Additional initiatives are on the way to support small and medium-sized companies in collaboration with the brokerage Association and the research partner in density. We will soon begin publishing, investor focused reports aimed at decreasing. The visibility of these companies in the market including the debt segment.

Another initiative, which we, I'm sure you are all well acquainted is the simplified listing regime and as I mentioned, before, we now have a company in the Final Phase of listing in BNB expected to occur. Hopefully later this year

Speaker Change: There are other potential companies on this path and we continue actively promoting and providing training to potential issues.

Let me move to our technology initiatives.

Jorge Alegría: We are proud to have internally developed the infrastructure that for decades made it possible for the Mexican market to grow into what it is today. Now it's time to evolve. We began with InterBolsa, CCV, and Asigna migrating from their in-house transaction systems to a next generation platform, a very large project we are working today. MexDer is now also joining the transition path to a more forward-looking and flexible trading platform solution. We are in the final stages for selecting a technology supplier for our front end of MexDer. Both Asigna and MexDer are set to be ready by the end of 2026, while InterBolsa and CCV remain on track to go live in 2027. As we move forward with this transformation, the rest of our systems are expected to evolve accordingly.

Last year B&B group embarked on a journey to shape the next generation of our business and operational model.

Speaker Change: We are proud to have internally developed the infrastructure that for decades made it possible for the Mexican market to grow into what it is today.

Speaker Change: But now it's time to evolve.

Speaker Change: We began within the value CCV and a sigma migrating from their in-house transaction assistance to a Next Generation platform, a very large project, we are working today.

Speaker Change: Next there is now also joining the transition path to a more forward-looking and flexible trading platform solution. We are in the final stages for selecting a technology supplier for our front end doxer.

Speaker Change: Both a signal nexter are set to be ready by the end of 2026. While in the balance, CCB, remain on track to go live in 2027.

As we move forward with this transformation, the rest of our resistance are expected to evolve accordingly.

Jorge Alegría: Our colocation business is also transitioning from a traditional on-site service to a virtual one, a faster, simpler, and more flexible, with fewer technical requirements. It will help the smaller brokers and foreign participants access the equity market and the derivatives market on a more friendly user way. Along with our partner, BICS, we are about to initiate the first stage, internal testing, and connectivity, and deployment is expected next year. On the new data and commercial cost business strategy, as I mentioned before, we hire a new CDO, a Chief Data Officer, who joined the team a couple of weeks ago. His role and challenge are defining the development of a new paradigm and operating model for our data business across all the organizations.

Speaker Change: Our collocation business is also transitioning from a traditional on-site service to a virtual 1.

A faster simpler and more flexible which uh with fewer technical requirements you will help a smaller Brokers and foreign participants access the equity market and the derivatives Market on a more friendly user way. Along with our partner bigs, we are about to initiate the first stage, internal testing, I'm connectivity and deployment is expected next year.

Speaker Change: On the new data and Commercial cross business strategy as I mentioned before.

Speaker Change: We uh, we hire a new CEO achieve data officer, who joined the team, a couple of weeks ago, his role and challenge.

Jorge Alegría: In line with this vision, all these initiatives and efforts are now embraced under the single commercial division of the group in ensuring a stronger alignment across all companies within BMV. In total, there are several commercial campaigns currently active across the different business lines, such as the bond CCP, the liquidity alternative for Asigna, the virtual colocation services, and Post-Trade and MexDer transformation program. Obviously, as well, a strong effort on the IPC repositioning among others. This consolidation is a key step forward, advancing the group strategy of investing in initiatives that foster revenue growth. Very important to mention is our ESG agenda. I want to share an important achievement as well. BMV Group was recently recognized by the Science Based Targets initiative for its commitment to prevent the worst effects of climate change.

Speaker Change: You filed the man operating model, for our Data Business across all the organizations. And in line with this Vision, all these initiatives and efforts are now embraced under a single commercial division of the group and ensuring a stronger alignment across all companies. Within bmd in total, there are several commercial and campaigns currently active across the different business lines, such as the bond. CCP, the liquidity alternative for a signal. The virtual collocation services and post trade, and network transformation program obviously, as well as a strong effort on the IPC repository repositioning among others.

Speaker Change: This consolidation is a key step forward advance in the group strategy of investing in initiatives, that Foster Revenue growth

Jorge Alegría: We are now part of a leading group of companies worldwide, including only seven stock exchanges that are driving ambitious corporate climate actions aligned with the Paris Agreement. Let me now move on our quarterly and semi-annual key financial highlights in the following slides, please. Keep in mind that all figures are expressed in Mexican pesos. Revenues and EBITDA showed two-digit growth, where revenues were a little over MXN 1.1 billion. EBITDA reached MXN 633 million, with a 57% margin and MXN 4,400 million in net income. Earnings per share were MXN 0.72, up 5%. Accumulated figures also show that revenue, EBITDA, and net income grew by double digits.

Speaker Change: Very important to mention is our ESG agenda. I want to share an important achievement as well. BMW BMV group was recently recognized by the science-based Target Initiative for its commitment to prevent the worst effects of climate change. We are now part of the leading group of companies worldwide, including only 7 stock exchanges, that are driving ambitious, corporate climate actions aligned with the Paris agreement.

Speaker Change: Let me now move on our quarterly and semiannual key financial highlights in the following slides, please. So keep in mind that all figures are expressed in Mexican tests.

so,

Speaker Change: revenues and Ada shows, 2, digit growth, where revenues were a little lower, 1.1 billion pesos,

Speaker Change: A reach 633 million with a 57% margin and 40 400 million in net income, earnings per share worth 72 cents up 5%.

Speaker Change: Accumulated figures also showed that Revenue, Ada and net net income Group by double digits.

Jorge Alegría: The depreciation of the peso against the US dollar had a financial impact in revenues of MXN 42 million in Q2 2025, basically due to the dollar-denominated service fees. Please turning to the next slide. Let's review the business line, the revenues by business line. If we look at the Q2 2025 revenue, you can see all our business lines are performing well. Transactional business such as equity and derivatives trading, clearing, and the OTC trading contributed with a 35% of BMV Group's revenue. The CSD, the Central Securities Depository, Indeval, which is responsible for custody, settlement, and global market services such as the cross-border transactions, participated with 31% of the revenue. Information services made up of data analytics, index, indices, valuation, and financial risk management services have an 18% weight.

Speaker Change: the depreciation of the peso against the US dollar had a financial impact in revenues of 42 million pesos in Q2 2025, basically, due to the dollar denominated service fees

Speaker Change: Please turn into the next slide. Let's review the business line, the revenue by business name

Speaker Change: You will look at the Q2 2025 Revenue.

Speaker Change: You can see all our business lines are performing. Well,

Speaker Change: Transactional business was as equity and derivatives trading and clearing and the OTC trading contributed with a 35% of BNB groups Revenue.

Speaker Change: The CSD, the Central Security is the positive in the value, which is responsible for custody supplements and Global Market services, such as the cross border transactions participated with 31% of the revenue.

Jorge Alegría: While capital formation, listing and maintenance contributed this year with a 12%. This reflects again the well-diversified nature of our business. Let's turn to slide 8 to go over equity trading and clearing. As I stated before, our transactional business benefited from the market dynamic. Revenue in cash equities trading was up 7% when compared with the same period Q2 in 2024. The average daily traded value reached MXN 18 billion during Q2 2025. There was a 9% contraction in the local market. However, the global market, SIC, grew by 60%, and there was a 35% increase in the number of transactions. As I mentioned before, our market share for the quarter was 81%.

Speaker Change: Information Services made up of data and analytics index, indices valuation, and Financial Risk Management Services have an 18% weight.

Speaker Change: While Capital formation listing and maintenance contributed this year, we are 12%.

Speaker Change: So, this reflects again, the well Diversified nature of our business.

Speaker Change: Let's turn to a slide. 8 to go over Equity trading and clearing.

Speaker Change: Um as I stated before our transactional business benefited from the market dynamics, revenue and cash Equity strategy was up 7% when compared with the same period Q2 in 2024. So the average daily traded value reached, 18 billion pesos.

Speaker Change: During the second quarter of 2025.

Speaker Change: There was a 9% contraction in the local market. However, the global market seek grew by 60% and there was a 35% increase in the number of transactions.

Speaker Change: As I mentioned, before our market share,

Speaker Change: For the quarter was 81%.

Jorge Alegría: On the clearing business, revenues was up 6% with a total of average daily trading volume for both Mexican exchanges was up 12%. The difference in growth rate is explained by cross trades, which require registration but not clearing, and we have a lower fee in the CCB, in the equity CCB than the regular trades. Now, with this, let us go now to the next slide, please, to review derivatives. Q2 2025 revenue for our derivatives trading and clearing segment increased by 22%, reaching MXN 70 million. MexDer grew 44%, led by a higher trading in Mexican peso/dollar futures driven by the rollover on the June contract. The average daily volume for the dollar futures reached $454 million.

Speaker Change: On the cleaning business revenues was up 6% with a total of average daily trading volume for both, Mexican exchanges plus of 12%.

Speaker Change: The difference in growth rate is explained by cross trades, which require registration, but not clearing. And we have a lower fee in the CCV, in the equity, CCV than the regular trades.

So now with this, let let us go now to the next slide, please to review the data.

Speaker Change: Queue to 2025 revenue for our, derivatives trading and clearing segment increase by 22% reaching 78 million pesos.

Speaker Change: Next to the group, 45%.

Speaker Change: 44% led by a higher trading, in Mexican pesos dollar, Futures driven by the rollover on the June contract.

Speaker Change: 54 million.

Jorge Alegría: While the open interest doubled the amount compared with 2024. For swaps, the average daily notional value increased 56% compared with the same period of 2024, reaching more than 5,000 million MXN. Open interest here experienced also an upward trend with an increase of 16%. With this in mind, revenues at Asigna totaled 35 million MXN in Q2, 2 million MXN or 5% higher compared with 2024. The average balance of margin deposits in the Q2 of 2025 was 40 billion MXN. 9% lower than the previous year-to-date margin deposits were 44 billion MXN, these are 3% higher than the previous year. If we move to the slide 10, OTC trading results are shown.

Speaker Change: We while the open open interest, double the amount compared compared with 2024,

Speaker Change: for swaps, the average daily notional value, increased 56%, compared with the same period of 2024, reaching more than 5, uh, 5,000.

Speaker Change: Million pesos.

Speaker Change: Open interest here. Experience also an overtrained with an increase of 60%.

Speaker Change: with this in mind very news that a signal totaled, 35 million pesos in Q2 2 million, or 5% higher compared with 2024

Speaker Change: Uh, the average balance of margin deposits in the second quarter of 2025.

Speaker Change: Was 40 billion 9% lower than the previous year. Uh but due to date margin. Deposits were 44 billion. So these are 3 higher, 3%, higher than the year than the previous year.

If we move to the slide, 10 otey trading results are shown.

Jorge Alegría: On Sif Icap, our OTC trading revenue increased MXN 3 million or 2%. Sif Icap México grew 11%, MXN 6 million, while the growth rate of Sif Icap Chile was -2%, representing a decrease of MXN 2 million. In both cases, market dynamism explains the variations. On slide 11, we have figures for our capital formation business, where we can see that listings revenue increased MXN 2 million, 60%, mainly driven by debt placements and the Fibra E CFE, whose issuance was the largest for the last 13 years. The maintenance revenue was up 4% this quarter due to a higher number of issuance listed last year in 2024, which generates maintenance revenues for this year. Let's move to the Central Securities Depository on slide 12.

Speaker Change: See if I got our OTC trading on C5, capability trading Revenue, increased 3 million pesos or 2%.

If I got Mexico grew 11% significant pesos. While the growth rate at C5 capacity was negative 2%. Representing a decrease of 2 million pesos in both cases, Market didn't explains the variation.

Speaker Change: On slide 11. We have figures for our Capital formation uh, business where we can see that listing Revenue, increase 2 million pesos 16%, mainly driven by that placements and the fra a cmx whose issuance was the largest for the last 13 years.

Speaker Change: The maintenance Revenue was up 4% this quarter due to a higher number of issuance listed last year in 2024, which generate maintenance revenue for this year.

Jorge Alegría: On interval revenue that we can show a growth of 20% driven by an increase in assets under custody in both domestic and global markets, cross-border conversions, and a higher number of transactions. The exchange rate movement generated a profit of MXN 21 million. Total assets under custody reached MXN 42 trillion in Q2 2025, which is an 11% increase when compared with Q2 2024. Growth in the local market is driven by a notable increase in custody, while the boost in the global market is due to cross-border activity and custody. Just a few years ago, we celebrated the $1 billion in assets under custody in the global market.

Speaker Change: Um, let's move to the Central Security Center. Security is depositor and it's like 12.

Speaker Change: On in the revenue that we can show a growth of 20% driven by an increase in assets.

Speaker Change: Under custody in both domestic and Global markets.

Speaker Change: Cross border conversions and a higher number of transactions, the exchange rate movement generated a profit of 21 billion pesos.

Speaker Change: total assets on the custody reached 42 trillion pesos in Q2 202025 which is an 11% increase when compared with Q2 2024

Speaker Change: Growth in the local market is driven by a notable increase in custody.

Speaker Change: While the Boost in the global market is due to cross-border activity and custody.

Jorge Alegría: We have now more than $100 billion in assets under custody for the SIC segment, which is a reflection of how successful this market segment has been in the Mexican securities industry. Finally, let's move to slide 13, information services. Information services revenue, which is composed of market data plus Valmer, reached MXN 200 million. This is MXN 14 million or 7% more than the Q2 2024. The market data revenues increased MXN 60 million or 13%. This is mainly attributed to the positive impact of the dollar peso exchange rate. Regarding Valmer alone, quarterly revenues decreased by MXN 2 million, or this is 4%, largely due to a very high comparable base from last year. Overall, the depreciation of the peso against the dollar contributed with MXN 17 million.

Speaker Change: Just a few years ago, we celebrated the 1 billion the 1 billion dollars in athletes on the coast in the global markets. We have now more than 100 billion dollars in assets under custody in for the sick segment which is a reflection of how successful this Market segment has been in the Mexican security industry.

Speaker Change: Finally.

Let's move to slide 13 Information Services.

Speaker Change: Information Services Revenue, which is composed of Market data plus b, reach, 200 million pesos. This is 14 million or 7% more than the the second quarter of 2024.

Speaker Change: The market data revenues increased, 60 million pesos, or 13%. And this is mainly attributed to the positive impact of the dollar. Peso exchange rate.

Regarding the environmental loan. What will quarterly? Revenues decreased by 2 million pesos largely or this is 4%.

Speaker Change: Largely due to a high, um, a very high comparable based for last year.

Jorge Alegría: Let us take a quick look to our operating expenses on slide 13 and 15. The operating expenses for Q2 2025 reached MXN 535 million, increasing 6% or MXN 28 million, which are explained mostly by personal expenses, increased MXN 7 million, basically explained by the annual salary increments and the Sif Icap variable compensation. Technology, up MXN 13 million because of consulting services, mostly related to ensure our platforms operate smoothly and securely, as well as investments aimed to enhance our technology governance practices. Depreciation increased to million pesos, mostly because of the new hardware leases for the storage area network. Our rent and maintenance decreased MXN 7 million driven by canceling provisions.

Speaker Change: but overall, the depreciation of the peso against the dollar contributed on with 17 million pesos,

Let us take a quick look to our operating expenses on the slide 13 and 15.

So the operating expenses for Q2 2025, which 535 million pesos increasing 6% or 28 million pesos, which are explained mostly by personal expenses, increased 7 million pesos basically explained by the annual salary increments and the see if a variable compensation.

Speaker Change: Technology of 13 million pesos because of Consulting Services.

Speaker Change: Mostly related to ensure our platforms operate smoothly and securely as well as Investments aimed to enhance our technology governance practices.

Speaker Change: Depreciation increased to million pesos, mostly because of the new hardware leases for the storage area network.

Jorge Alegría: Consulting fees increased MXN 4 million due to internal programs aimed at enhancing the employee experience, as well as payment to the board of directors linked to the price of gold. Sub-custody, up MXN 6 million as the value of the assets on the custody abroad increased, which are also generated additional revenues in the bank. CNBV increased MXN 1 million, the regulatory fee, in line with inflation rate with in Mexico. Marketing also increased by MXN 4 million, driven by our initiatives and our participation in global events, higher marketing expenditures, which all these are aligned with our claim, where our new and more aggressive client engagement strategy. Finally, other expenses decreased by MXN 2 million, mostly due to a dividend tax from Banmer, Costa Rica.

Speaker Change: Provisions.

Speaker Change: Consulting fees, increase 4 million.

Speaker Change: Due to internal programs aim and enhancing the employee experience, as well as payment to the board of directors lead to the price of gold.

Speaker Change: Some custody of 6 million pesos.

Speaker Change: At the value of the assets on the cost of abroad increase, which are also generated additional variance are being developed.

Speaker Change: CMB increased 1 million pesos.

Speaker Change: The regulatory.

Speaker Change: In languages, inflation rate in Mexico.

Speaker Change: Marketing also, increased by 4 million pesos driven by other initiatives and other participation in global events, higher marketing expenditures, which all these are aligned with our claims, where our new and more aggressive clients engagement strategies.

Finally other expenses decreased by 2 million mostly due to a different tax from Ballmer, Costa Rica.

Jorge Alegría: The depreciation of the peso against the dollar led to an increase of MXN 13 million in Q2 2025, mainly in technology and sub-custody. Our total CapEx for the quarter was MXN 68 million, in line with our investment plan. With this, I would like to end my presentation and my remarks. Together with my team are more than happy and ready to answer all the questions you may have. Thank you very much for your time and your attention.

The depreciation of the peso against the dollar led to an increase of 13 million pesos in Q2 2025 mainly in technology and subclusters.

Speaker Change: Our total capex for the quarter was 68 million pesos in line with our investment plan.

Speaker Change: with the with this, uh,

Speaker Change: I I would like to uh to end my uh my presentation and my remarks and uh together with my team are more than happy and ready to to answer all all the questions you may have, and thank you very much for your time and your attention.

Operator: Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Our first question is from Ernesto Gabilondo with Bank of America. Please proceed.

Speaker Change: Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2. If you would like to remove your question from the queue. For participants using speaker equipment, may be necessary to pick up your handset before pressing the star keys.

Speaker Change: Our first question is from Ernesto gabilondo with Bank of America. Please proceed.

Ernesto Gabilondo: Thank you. Hi, good morning, Jorge, Ramón, Hanna, and good morning to all your team. A miss in the bottom line, but congrats in your operating results, both revenues and EBITDA expanded, double digits. Congrats on that. I have a couple of questions. The first one is on your financial results. We noted this quarter that line was almost half of what you generated in Q1 and almost half of what you generated a year ago. This is mainly explained probably because of the effects, appreciation and lower rates. Just wondering, how should we expect this line going forward? What are your expectations for the effects this year, for next year?

Jorge Ramen: Thank you. Hi. Good morning. Jorge Ramen, Hannah and good morning to all your team.

Jorge Ramen: Um, Miss in the bottom line, but congrats in your operating results, both revenues and a beta expanded, uh, double digits. So so congrats on that.

Jorge Ramen: Um, I have a couple of questions. Uh, the first 1 is on your financial results.

Jorge Ramen: Uh, we we noted this quarter that line was almost half of what you generated in the first quarter and almost half of what you generated a year ago. And and this is mainly explained, probably because of the FX appreciation and and and and lower rates.

Ernesto Gabilondo: Also, if you can also give us what will be your expectations for interest rates, will be very helpful. My second question is on the fixed income counterpart. As you mentioned, you are already in the final phase, testing some things with the regulator. You already have some participants. Can you give us what is the latest update? What will be the timeline for the implementation of M bonds? When do you expect to do repos? When can we expect eventually to have an electronic market? Thank you.

Jorge Ramen: Um, so just wondering, how should we expect this line going forward? Uh, what are your expectations for for the FX this year for next year? And also, if you can also give us what will be your expectations uh, for interest rates? Uh, will be very helpful.

Jorge Ramen: Um, and then my second question is on the fixed income counterpart. Uh, as you mentioned, you are already in the Final Phase testing some things with your regulator, you already have some, uh, participants. Uh, but can you give us what is the latest update? Uh, what will be the timeline for the implementation of of M bonds, when you expect to do repost? Uh, and when can we expect eventually to have a uh, an electronic

Speaker Change: Market, thank you.

Jorge Alegría: Thank you, Ernesto. I will ask Ramón to go over your first question on the financial numbers. We might have to do the second question as well.

Jorge Ramen: Thank you. I will, I will ask Ramen to go over your your first question.

Roberto González Barrera: Good morning, Ernesto. As you correctly said, this is due to the lower interest rate and the effect of the exchange rate. I wish we had estimations for these. We leave that for the analysts. We don't have or publish expectations for exchange rate or interest rates.

Ramón Güémez Sarre: Good morning, Ernesto. As you correctly said, this is due to the lower interest rate and the effect of the exchange rate. I wish we had estimations for these. We leave that for the analysts. We don't have or publish expectations for exchange rate or interest rates.

Speaker Change: On the on on the financial numbers that you might have question as well. Good morning, Ernesto.

Speaker Change: Uh, as you correctly said, this is due to the lower interest rate and the effect of the exchange rate.

Uh, I I wish we had a a estimation for these.

Speaker Change: we leave that for the analysts, we we, we don't have or published expectations for exchange rate or

Speaker Change: Or or interest rates.

Jorge Alegría: Roberto will take the bond CCP question.

Roberto González Barrera: Ernesto, what we have done is we've gone through a lot of testing, and we have 2 DRP tests with the regulators. We've finalized all the filings, all the information with them. We're expecting in the coming weeks to get the final approval to initiate operations. As Jorge mentioned in his comments, we've been working with the market to engage them and to also work with them to connect with the technology, basically it's actually the same system that we have for the equities, CCP. The idea will be to start operations maybe in Q4 of this year. Regarding repos, we're working also with the central bank and the Mexican Securities Commission on all the approvals to be able to include also these type of transactions in the CCP for bonds.

Roberto Gonzalez: Robert Roberto will will take the the bond CCP question.

Roberto González Barrera: We should get approvals by the end of the year, Q1 next year. That will depend on how fast we could move to get the technology ready and maybe Q2 next year, it be able to provide also those services.

Roberto Gonzalez: To DRP tests with The Regulators. So and we finalize all the filings, all the informations with them. So, we're expecting the coming weeks to get the final approval to initiate operations. And as course, I mentioned in his comments, we've been working with the market to engage them and to also work with them to connect with the technology basically exactly the same system that we have for the equities CCP. Uh, so the idea will be to start operations maybe in the last quarter of this year regarding repos, we're working also with the central bank and the Mexican Security Commission on all the approvals to be able to include also this type of transactions in the CCP for for dogs and we should get approvals by the end of the year, first quarter, and next year, and that will depend on how fast we could move to get the technology ready. And maybe second quarter next year and be able

Roberto Gonzalez: to provide all to that those services.

Jorge Alegría: Let me just add, I guess, the need for a bond CCP or a fixed income CCP has been proven. and we have, as mentioned, 2 banks testing or part of this testing process, 2 or 3 banks. Now we have almost 5 on the line, also trying to join on the paperwork for to become creating members. Something very important mentioned by Roberto is that the onboarding is relatively easy because directly or indirectly, all the Mexican institutions through Casa de Bolsa are already members of the equity CCP, so the onboarding process is easier. The electronic market, I think it's already there. The electronic market is already there.

Roberto Gonzalez: Let me, let me just add the rest of that.

the, I guess the

Roberto Gonzalez: The need for a bond, a bond, CCP or a fixed income. CCP has been, uh,

Roberto Gonzalez: Proven the. And, and we have as mentioned 2 Banks testing, as part of this testing process to work 3 Banks. But now we have almost 5 on the line, uh, also trying to join on the paperwork for to, to become creating members.

Something very important mentioned by by Roberto. Is that the the onboarding is relatively easy because

Speaker Change: Directly or in the indirectly, all the the Mexican institutions through Castle. They also are already members of the equity CCP so the onboarding process is is easier.

Roberto Gonzalez: And the the electronic Market.

Jorge Alegría: It's not necessarily in Mexico, but there are already platforms offering electronic trading. Some of them will or are looking to access the CCP as well. I think we are going to see an evolution of the current electronic services like CPO that are provided already in the market are going to evolve with the existence of the CCP. This is only on the first stage of the trading of bonds. The size of the market once the repos are incorporated will be much higher, much bigger.

Roberto Gonzalez: I think it's it's already there. The electronic Market is already. There is not necessarily in Mexico, but they're already platforms offering electronic Trading.

Roberto Gonzalez: Uh, some of them will or are looking to access the the the CCP as well.

Roberto Gonzalez: and the I think we are going to see an evolution of the current

Roberto Gonzalez: Electronic.

Roberto Gonzalez: uh, services, like people that are provided already in the, in the market are going to evolve

Roberto Gonzalez: with the with the existence of the CCP and this is only on the first stage of

The trading of bonds.

Roberto Gonzalez: The size of the market, once the repos are Incorporated will be much higher.

Ernesto Gabilondo: Perfect. No, thank you. Thank you so much, Jorge.

Speaker Change: Much bigger. Perfect. No. Thank you. Thank you so much. Okay.

Operator: Our next question is from Pablo Ordóñez with GBM. Please proceed.

Our next question.

Speaker Change: Is from Pablo or Doris with GBM, please proceed.

Pablo Ordóñez Peniche: Yes. Hi, good morning, Jorge, Ramon, and the rest of the team. Congratulations on the results, on the progress on your initiatives. My question is on your CapEx. You mentioned, Jorge, that CapEx for the quarter for ex MXN 68 million was in line with the plan. Can you remind us what is the plan for the year? Should we still expect this level of $250 million, $260 million similar to previous year? The run rate seems in the first half to be lower than this plan. That will be my first question.

Pablo Ordóñez: Yes. Hi, good morning, Jorge, Ramon, and the rest of the team. Congratulations on the results, on the progress on your initiatives. My question is on your CapEx. You mentioned, Jorge, that CapEx for the quarter for ex MXN 68 million was in line with the plan. Can you remind us what is the plan for the year? Should we still expect this level of $250 million, $260 million similar to previous year? The run rate seems in the first half to be lower than this plan. That will be my first question.

Speaker Change: Hey yes. Uh, hi. Good morning Cerrone. I'm the rest of the team. Congratulations on the results, and the progress on on your initiatives. Uh, my question is on, on your capex, you mentioned that the capex for the quarter for x68 million pesos was in line with the plan. Can you remind us? What is the plan for the year? Should we still expect this level of 250 to 260 million million dollars similar to to previous year? Because the Run rate seems in the first half seems to be lower than than than this plan Ur that that would be my my first question.

Jorge Alegría: Pablo, good morning. Yes, just to... We're not expecting 250 to 60 million dollars or pesos.

Ramón Güémez Sarre: Pablo, good morning. Yes, just to... We're not expecting 250 to 60 million dollars or pesos.

Speaker Change: Tableau, good morning. Yes. Uh, do you just to we're not expecting 250 to 60 million dollars of pesos?

Pablo Ordóñez Peniche: Pesos.

Pablo Ordóñez: Pesos.

Jorge Alegría: Yes, That is our expectation for CapEx.

Ramón Güémez Sarre: Yes, That is our expectation for CapEx.

Speaker Change: But uh, yes. We're

Speaker Change: That is our expectation for capex.

Pablo Ordóñez Peniche: Okay, thank you, Ramón. With this in mind, and the holdings of cash that you have in your balance sheet, what is the optimal level of cash that you consider for Bolsa look going ahead? Do you think that there will be room to pay back the buyback activity for Bolsa, Ramón and Jorge?

Pablo Ordóñez: Okay, thank you, Ramón. With this in mind, and the holdings of cash that you have in your balance sheet, what is the optimal level of cash that you consider for Bolsa look going ahead? Do you think that there will be room to pay back the buyback activity for Bolsa, Ramón and Jorge?

Speaker Change: Okay, thank you very much. And and with this in mind and the and the Holdings of cash that you have in your balance sheet, what is the the optimal level of cash that you consider for, for Volta? Look going ahead. Do you think that there will be a room to, to, to take back the the buyback activity for, for BSA Ramona and Jorge.

Jorge Alegría: Well, currently the buyback program is triggered by the price of the stock. We have not been active in the last quarter due to precisely the increase in the price. Regarding our cash position, keep in mind that we have over $1 billion or MXN 1 billion in reserves. We have the CapEx needs as well. We constantly analyze what our optimal level should be. We plan to continue to distribute cash we don't deem necessary. We will distribute as much cash as we can. In the past, we've distributed 80%, that's the idea, at least to begin with.

Speaker Change: Currently the the buyback program is triggered by the price of the stock.

Speaker Change: Uh, so we have not been active.

Speaker Change: In the last quarter, do you to precisely the increase in the price?

Regarding our cash position.

Speaker Change: Keep in mind that we have a, uh, over a billion dollars a billion pesos in reserves.

Speaker Change: uh, we have the capex needs as well and the

Speaker Change: Optimal level should be.

Speaker Change: We plan to continue.

Speaker Change: To distribute cache. We don't deem necessary.

Speaker Change: So we will distribute as much as we can as much cash as we can.

Speaker Change: We in the past 80%. And that's the that's the idea at least to begin with.

Pablo Ordóñez Peniche: Okay, perfect. Thank you very much, Ramón and Jorge.

Pablo Ordóñez: Okay, perfect. Thank you very much, Ramón and Jorge.

Ramona: Okay, perfect. Thank you very much Ramona.

Operator: Our next question is from Yuri Fernandes with J.P. Morgan. Please proceed.

Speaker Change: Our next question is from Yuri, Fernandez with JP Morgan please proceed?

Yuri Fernandes: No, thank you, guys. Again, congrats on the EBITDA trends. Revenue is growing way faster than your expenses. I have a first one regarding your income taxes that were, you know, the tax rate was slightly higher this Q, above 31%. I know it can be volatile. Some quarters 27%, 28%, and it's not uncommon to see this above 30%. That is the statutory in Mexico, right? Just trying to understand what happened here and what should we think. Like, what is driving your, you know, higher tax rate this quarter? Just on your OTC trading on CCAP, when we look versus on a longer window, like 5 years CAGR, this is a line that has not been growing, right? Or has been growing close to inflation.

Yuri Fernandez: No, thank you guys. And again, congrats on the on the ABA trains revenue is growing way faster than than your expenses. Uh, I I have a first 1 regarding your income taxes.

Yuri Fernandez: That were, you know, the tax rate was likely higher this Cube, uh, above 31%. I know it can be volatile. Some quarters, 27, 28, and, and, and, and it's up and coming to see us above 30 that is the stop. The max correct. So, just trying to understand what happened here, and what should we think? Like, what is driving your, you know, higher tax rate, this quarter, um, and just on your OTC trading on, on CY, cops. Um, when we we look versus an a longer window, like 5 years kegger, this is a line that has not been growing, right? Um, or has

Yuri Fernandes: I know Chile sometimes can be volatile on the facts and things like this, but if you can provide an overview, what should we expect on this line? If you have any initiative, anything that can improve, you know, this line, I would appreciate it. Thank you.

Yuri Fernandez: Growing close to inflation. Um, and I know Chile, sometimes can be volatile on the facts and things like this, but if you can provide an an overview, what should we expect on this line? If you have any initiative, uh, anything that can improve, you know, uh, this line, uh, I would appreciate it. Thank you.

Jorge Alegría: Yuri, thank you for your questions. Regarding the tax rate, this is basically the impact of inflation. Remember that you have a certain amount of inflation that is tax-deductible. That is what's playing with our tax rate for the quarter. Going forward, I would use a 30% tax rate in general. We have a little deviation from that. Regarding our OTC trading expectations for the future, I will let Gabriel Rodríguez, our Sif Icap CEO, address that.

Speaker Change: Judy, thank you for your questions. Regarding the tax rate. This is basically the the impact of inflation. Uh, remember that? You have a an

Speaker Change: Certain amount of inflation that is tax deductible, and that is what playing with our tax rates for the quarter.

Speaker Change: Uh, going forward.

Speaker Change: I I would issue a a 30% tax rate in general. We have a little deviation.

Speaker Change: From that.

Speaker Change: Regarding our OTC trading. Uh,

Gabriel Rodríguez Bas [CEO: Good morning, Yuri, thanks for the question. As you know, in Mexico, we have a structure on tariffs that are capped. Regarding the volume, it's very difficult to grow, and that's why you mentioned that we have been growing only with inflation, which is right. We are working highly in coordination to renew our platforms to go more electronic. We hope that once we have the market has a CTP in place, then we can expand our services with electronic market because different markets can be connected and can be hedge opportunities trading for our customers, which I think will take little by little steps, but it's the right move to go.

Gabriel Rodríguez Bas: Good morning, Yuri, thanks for the question. As you know, in Mexico, we have a structure on tariffs that are capped. Regarding the volume, it's very difficult to grow, and that's why you mentioned that we have been growing only with inflation, which is right. We are working highly in coordination to renew our platforms to go more electronic. We hope that once we have the market has a CTP in place, then we can expand our services with electronic market because different markets can be connected and can be hedge opportunities trading for our customers, which I think will take little by little steps, but it's the right move to go.

Speaker Change: Expectations for the future. I will let Gabrielle Rodriguez. Uh, see if I can address that.

Gabrielle Rodriguez: Good morning jury and thanks for the question. Uh, as you know in Mexico, we are we, we have an structure on Paris that are capped, so,

Gabrielle Rodriguez: Regarding the volume is very difficult to grow. And that's why you mentioned that we have been growing only uh, with inflation which is right.

Gabrielle Rodriguez: Uh, we are working. Highly in coordination, to renew our platforms to go. More electronic.

Gabrielle Rodriguez: and we hope that once we have, uh,

the market has a CCP on plate, then we can expand our services with electronic markets.

Gabriel Rodríguez Bas [CEO: Regarding Chile, as you know, our market share in Chile is very high, and we depend a lot on the volatility of the market. There, we have few accounts that are capped, but the rest is variable, and we depend on the volumes.

Gabriel Rodríguez Bas: Regarding Chile, as you know, our market share in Chile is very high, and we depend a lot on the volatility of the market. There, we have few accounts that are capped, but the rest is variable, and we depend on the volumes.

Because different markets can be connected and, and can be, uh, hedge, uh, opportunities trading for our customers, which I think will take little by little steps, but it's the right move to go and regarding Chile, as you know, our market share in Chile is very high. And we depend a lot on the

Gabrielle Rodriguez: Volatility of the market, so there. Uh, we have

Gabrielle Rodriguez: Few accounts that are cut, but the rest is variable and we depend on the volumes.

Jorge Alegría: No, super clear. Thank you, guys. Thank you, Yuri.

Yuri Fernandes: No, super clear. Thank you, guys.

Gabrielle Rodriguez: No, super clear. Thank you guys.

Gabriel Rodríguez Bas: Thank you, Yuri.

Judy: Thank you, Judy.

Operator: Our next question is from Edson Murguia with SummaCap. Please proceed.

Our next question is from Edson marua with Summa cap. Please proceed.

Edson R. Murguia: Hi. Good morning. Thank you for taking my question. Just to follow up on CapEx, where is the key infrastructure or digital initiatives being prioritized? Jorge mentioned in his remarks about several fronts in legal settlement, in derivative market, even with MexDer and so on with the technology. How are you gonna be in the next couple of quarters? Because if the increase is 38% quarter-over-quarter, are we expecting to see this increases? My second question is regarding on AI. Most of the financial institutions around the world are basically speeded up in artificial intelligence. My question is how the Mexican Stock Exchange is using AI or it's part of this initiative. How can we analyze from going forward? Thank you.

Edson Murguia: Hi. Good morning. Thank you for taking my question. Just to follow up on CapEx, where is the key infrastructure or digital initiatives being prioritized? Jorge mentioned in his remarks about several fronts in legal settlement, in derivative market, even with MexDer and so on with the technology. How are you gonna be in the next couple of quarters? Because if the increase is 38% quarter-over-quarter, are we expecting to see this increases? My second question is regarding on AI. Most of the financial institutions around the world are basically speeded up in artificial intelligence. My question is how the Mexican Stock Exchange is using AI or it's part of this initiative. How can we analyze from going forward? Thank you.

Judy: Hi, good morning, thank you for for taking my questions. Um, just to follow up on capex. Um, what is the infrastructure or digital initiative being prioritized?

Speaker Change: I'm calling to mention in in Central Markets about several fronts and vehicle segments and delivered to Market, even with next year and so on with the with the technology. So um how are you gonna be in the next couple of quarters? Because if

Judy: The increases 38% quarter to quarter.

Are we expecting to to to see the synthesis?

Judy: And the second question is regarding on, on AI.

Judy: most of the financial institution around the world are

Judy: Able to speed it up in in artificial intelligence. So my question is how the Mexican stocks they change is using

Judy: It's part of this initiative. So how can we?

Judy: Analyze from going forward.

Judy: Thank you.

Jorge Alegría: Thank you, Edson. I think We would appreciate if you can repeat your first question. The second one, I will ask Claudio Vivian, our CIO, to discuss how we are approaching all the AI initiatives in the group.

Thank you. Um, I think

Judy: We we, we would appreciate if we, you you can repeat your first question. And the second second 1,

Speaker Change: I I will ask Claudio Vivian our Tio, to to discuss how we are approaching all the AI initiatives in the group.

Edson R. Murguia: Yeah. Probably, I will phrase the first one in order to understand better the top priorities on the CapEx and technology front. You mentioned that you have different types of initiatives in the retail, in the derivative markets, even with this electronic platform, with the fixed income settlement and so on. How can we identify the top priorities?

Edson Murguia: Yeah. Probably, I will phrase the first one in order to understand better the top priorities on the CapEx and technology front. You mentioned that you have different types of initiatives in the retail, in the derivative markets, even with this electronic platform, with the fixed income settlement and so on. How can we identify the top priorities?

Speaker Change: Yeah, probably. I will try the first 1 in order to understand better, the top priority on on the capex, capex and Technology fund.

Speaker Change: You mentioned that we have different types of initiatives in the retail in the River Market. Even with this electronic platform with the fixed income settlement and and so on. So how can we identify the top priorities?

Jorge Alegría: Yeah, it's very clear. Thank you very much. Ramón, please.

Gabriel Rodríguez Bas [CEO: Okay. Edson, thank you. Our top priorities for CapEx are the transformation program for the Post-Trade segment of the business and the bond CCP. The vast majority of our CapEx is intended for the Post-Trade transformation segment. Regarding how we use AI, I will let Claudio Vivian address that.

Ramón Güémez Sarre: Okay. Edson, thank you. Our top priorities for CapEx are the transformation program for the Post-Trade segment of the business and the bond CCP. The vast majority of our CapEx is intended for the Post-Trade transformation segment. Regarding how we use AI, I will let Claudio Vivian address that.

Speaker Change: Yeah, very clear. Thank you very much. Uh, Edson thank you. Our top priority for capex. As are the transformation program for the Post trade segment of the business.

Uh, and the bond CCP.

Speaker Change: uh, the vast majority of our capex is

Speaker Change: is intended for the postery transformation.

Speaker Change: Segment.

Speaker Change: And regarding how we're using AI. I will let you address that.

Claudio Vivian Gutiérrez: Hello. Thanks for your question. Well, we have already introduced AI Center of Excellence in order to identify and explore all the capabilities the AI can introduce in our operations. We already have some initiatives regarding searching capabilities through our websites. Second is related with surveillance capabilities. And some others are related with the use of GenAI in order to improve the productivity of our collaborators, our employees. You may expect that there are a lot of alternatives that are raising in different arenas. They are not just the three ones that we already working on. There is a lot of work that is happening in this regards and all supported by this Center of Excellence.

Speaker Change: Hello. Thanks for your question. Well, we have already introduced, uh, uh, AI center of excellence in order to identify and explore all the capabilities. The AI can introducing, our operations, we are already have some initiatives uh, regarding uh certain capabilities through our websites. Second is related with surveillance capabilities uh and some others are related with uh the use of uh Genai in order to uh improve the productivity of our uh, collaborators that were our our employees. Would you may expect that there are a lot of Alternatives that are racing in different Arenas. Uh, they are not just the 3 ones that do with that, we already already working on. But uh, there is a lot of work that is happening in this, in this regard. And uh, and the old uh, supported by uh, this center of excellence.

Edson R. Murguia: Okay. Okay. Thank you so much. Congrats on the results.

Edson Murguia: Okay. Okay. Thank you so much. Congrats on the results.

Speaker Change: Okay. Okay. Thank you so much, and congrats on on the results.

Operator: Our next question is from Arnon Shirazi with Citi. Please proceed.

Speaker Change: Our next question is from our non shirazi with City. Please proceed.

Arnon Shirazi: Hi, all. Good morning, and thanks for the opportunity of making questions and congrats on the good operating results. I have two questions here. My first one is regarding information service. I believe that we briefly discussed the opportunity during this conference call. What do you see that could be the main drivers and opportunities on the whole? My second question is regarding some kind of technology developments, such as tokenization and blockchain you are trying to first use in your operations. Thank you.

Speaker Change: Hi all. Good morning, thanks for the opportunity to help making questions and for the last on big good operating results, I have 2 questions here and my first 1 is regarding information service. I believe that we briefly discussed the opportunity during this conference call, what do you see? That could be the main drivers and opportunities for all and my second question is regarding some, um, kind of Technology developments such as tokenization and blockchain because trying to push this it was the operation. Thank you.

Jorge Alegría: Many opportunities, Arnold. If I understood correctly, you were asking about information services? Yes, that's correct. Thank you, Arnold. On the first one, on the market data, what we're seeing is, you know, we've been growing our data double digits for the last couple of years. This was mainly because of our point of presence in New Jersey and the alliance we have with the Deutsche Exchange in Europe. What we're moving forward is in building new added value services. We are building a new co-location platform, which will be up and running probably by the end of the year. This will be, you know, easier to connect for our global clients to provide our data, but also to answer, to trade equity and derivatives, as it was mentioned earlier.

Jorge Alegría: Many opportunities, Arnold. If I understood correctly, you were asking about information services?

If if I understood correctly, you were asking about Information Services.

Arnon Shirazi: Yes, that's correct.

Yes, that's correct.

Claudio Vivian Gutiérrez: Thank you, Arnold. On the first one, on the market data, what we're seeing is, you know, we've been growing our data double digits for the last couple of years. This was mainly because of our point of presence in New Jersey and the alliance we have with the Deutsche Exchange in Europe. What we're moving forward is in building new added value services. We are building a new co-location platform, which will be up and running probably by the end of the year. This will be, you know, easier to connect for our global clients to provide our data, but also to answer, to trade equity and derivatives, as it was mentioned earlier.

Speaker Change: Thank you Arnold on the first 1, on the market data.

Speaker Change: What we're seeing is, uh, you know, at the Mark we've been growing our data double digits for the last couple of years. It was mainly because of our point of presence in New Jersey, and the alliance we have with the Deutsche Exchange in Europe. What we're moving forward is in building, new added value Services. We are building a new uh, collocation platform, which will be up and running by probably by the end of the year. And this will be, you know, easier to connect for our Global clients to provide our data, but also to answer uh to trade equity and derivatives

Jorge Alegría: We're also seeing, you know, with more AI, with more developments in technology, well, the gasoline for that is data. We are ready to support our clients that are moving in that direction. We're seeing, you know, a division that will continue growing and be one of our main drivers in the next couple of years. What about the technology development? Well, regarding tokenization, blockchain, I would say that one of the objectives that we have related... Sorry, this is Claudio Vivian again. One of the main objectives that we have related with the transformation of the platform in the Post-Trade has to do with allowing our infrastructure to permit to explore these capabilities in the near future.

Claudio Vivian Gutiérrez: We're also seeing, you know, with more AI, with more developments in technology, well, the gasoline for that is data. We are ready to support our clients that are moving in that direction. We're seeing, you know, a division that will continue growing and be one of our main drivers in the next couple of years.

Speaker Change: As it was mentioned earlier. We're also seeing uh, you know, with more AI with more developments in technology. Uh, well, the gasoline in for that is data.

Speaker Change: so we are, we are ready to support our clients that are moving in that direction and we are seeing you know, a

Arnon Shirazi: What about the technology development?

Claudio Vivian Gutiérrez: Well, regarding tokenization, blockchain, I would say that one of the objectives that we have related... Sorry, this is Claudio Vivian again. One of the main objectives that we have related with the transformation of the platform in the Post-Trade has to do with allowing our infrastructure to permit to explore these capabilities in the near future.

Jorge Alegría: This will be happening through the transformation. We are working on in the Post-Trade and looking for these capabilities to development in the short term. Great. Thank you.

Claudio Vivian Gutiérrez: This will be happening through the transformation. We are working on in the Post-Trade and looking for these capabilities to development in the short term.

Speaker Change: What about the tech development? The technology development? Well regarding, uh, tokenization blockchain, I would say that uh the 1 of the objectives that we have related. Sorry, this is again. Uh, 1 of the main objectives that we have related with the transformation of the platform. In the post trade has to do with, allowing our infrastructure, to permit to explore this capabilities in the, in the, in the near future. So, this will be happening through the uh, transformation. We are, uh, uh, working on and post trade and uh uh looking for uh uh this uh, this capabilities to development in the short term.

Arnon Shirazi: Great. Thank you.

Speaker Change: Right. Thank you.

Operator: As a reminder, it is star one on your telephone keypad if you would like to ask a question. Our next question is from Carlos Gomez-Lopez with HSBC. Please proceed.

Speaker Change: As a reminder, this is star 1 on your telephone keypad if you would like to ask a question. Our next question is from Carlos Gomez with HSBC, please proceed.

Carlos Gomez-Lopez: Thank you for taking my questions, and thank you for doing the call very early in your morning, 7:00 AM. I wanted to ask again about CapEx, but my interest is more long-term. What is your CapEx plan for 2026, 2027, and beyond? How much do you think you will have to spend on a temporary and on a permanent basis? Second, you referred to your expenses, and there was a line in which you mentioned that you had increases in management compensation linked to the gold price. Could you elaborate on that? Thank you.

Carlos Gomez: Thank you for taking my questions and thank you for doing the call. Very early in your morning at 7 in the morning. Um, I want to ask again about capex, but my interest is more long term. Uh, what is your capex plan for 202627? Uh, and Beyond how much do you think you will have to spend uh, on a temporary and on?

Carlos Gomez: Permanent basis. Uh, and second you refer to your expenses and there was a lining which you mentioned that you had increases in management compensation linked to the gold price um could you elaborate on that? Thank you.

Jorge Alegría: Carlos, thank you very much. Regarding the long-term CapEx expectations, at least for the next couple of years, I think we will continue with CapEx in the MXN 200 to 300 level. We're currently in the transformation of our Post-Trade technology. We're beginning to look at MexDer. After that, we will look at cash equity trading. For the next two, three years, we have a lot of, let's say, technology jumps. We've spent a lot doing upgrades and maintenance to our current technology. As Jorge explained, we're changing to a new outsourced model or buying systems from third parties, not developing ourselves anymore, and going to the cloud. For the next years, we expect to continue to see that level of CapEx. Regarding what... The compensation wasn't management. Yeah.

Ramón Güémez Sarre: Carlos, thank you very much. Regarding the long-term CapEx expectations, at least for the next couple of years, I think we will continue with CapEx in the MXN 200 to 300 level. We're currently in the transformation of our Post-Trade technology. We're beginning to look at MexDer. After that, we will look at cash equity trading. For the next two, three years, we have a lot of, let's say, technology jumps. We've spent a lot doing upgrades and maintenance to our current technology. As Jorge explained, we're changing to a new outsourced model or buying systems from third parties, not developing ourselves anymore, and going to the cloud. For the next years, we expect to continue to see that level of CapEx. Regarding what... The compensation wasn't management.

Carlos Gomez: Carlos, thank you very much. Um,

Speaker Change: Regarding the long-term capex expectations.

at least for the

Speaker Change: next couple of years, I think we will continue with capex in the 200 to 300 level, uh,

We're currently in the transformation of our.

Clothes, trade technology. We're beginning to look at next there. And after that, we will look at Cash Equity Trading.

Speaker Change: So, for the next 2, 3 years, we have a lot of, uh,

Speaker Change: currency technology.

Speaker Change: Jumps. We, we spent a lot, many doing upgrades and maintenance to our current technology. But as s explained, we're changing to a new

outsourced, uh, model or

Speaker Change: Buying the systems from third parties. Not developing ourselves anymore.

Speaker Change: And going to the cloud.

So, for the next years, we expect to continue to see that level of capex.

Carlos Gomez-Lopez: Yeah.

Jorge Alegría: It was the board of directors, and I'll let Jorge address that. Yeah. Not manage... I guess it's an old tradition, Carlos, in many Mexican companies that the board members receive or used to receive a gold coin for their services as board members. That tradition is fading. I think that is going to be coming out, but that's why if the price of gold goes up or down, there may be some variations on the compensation for the board. That's a tradition that is going out. I think it has been going down. I don't think it's going to survive for maybe the next one or two years, but it's that's the reason why. Yeah.

Ramón Güémez Sarre: It was the board of directors, and I'll let Jorge address that.

Jorge Alegría: Yeah. Not manage... I guess it's an old tradition, Carlos, in many Mexican companies that the board members receive or used to receive a gold coin for their services as board members. That tradition is fading. I think that is going to be coming out, but that's why if the price of gold goes up or down, there may be some variations on the compensation for the board. That's a tradition that is going out. I think it has been going down. I don't think it's going to survive for maybe the next one or two years, but it's that's the reason why. Yeah.

Speaker Change: Uh, regarding what is it? The compensation wasn't management. It was the Border directors and I left Corey address there. Yeah, not, not man, I I, I guess it's um, it's an old tradition Carlos. In many Mexican companies that the board members received or used to receive a a, a gold coin for their services as board members.

Speaker Change: Uh, that that's traditionally stating that I think that is going to be coming out, but that's why if the price of gold was up or down, the there may be some variations on the compensation for the board.

Speaker Change: And that's that's a tradition that is, is going out the

Speaker Change: I think has been going down. I I I don't think it's going to survive for the maybe the next 1 or 2 years, but

Speaker Change: It's that's that's the reason why. Yeah.

Carlos Gomez-Lopez: Yeah. It looks like a good incentive. Maybe you shouldn't phase it out.

Jorge Alegría: An old tradition is.

Carlos Gomez-Lopez: Especially if you go to the board later. On the CapEx, sorry, the 200, 300 million, that do you price that in dollars or in pesos?

Speaker Change: I mean, it looks like a good incentive. Maybe you shouldn't face it out. Um, especially if you go to the board later. So on the, on the, on the capital,

The 200300 million. Uh, the that do you price that in dollars or in pesos?

Jorge Alegría: We price that, mostly in dollars.

Speaker Change: With price that uh, mostly in dollars.

Carlos Gomez-Lopez: Okay. It will be a fixed amount in dollars. Quasi fixed amount in dollars.

Speaker Change: Okay, so so it will be a fixed amount in dollars.

Speaker Change: Of course I fix them on the dollar.

Jorge Alegría: Yes.

Speaker Change: Yes.

Carlos Gomez-Lopez: Thank you so much.

Speaker Change: Thank you so much.

Operator: There are no further questions at this time. I would like to turn the conference back over to Jorge for closing remarks.

Jorge Ramen: There are no further questions at this time. I would like to turn the conference back over to Jorge for closing remarks.

Jorge Alegría: Well, once again, thank you all for your time. It was a privilege for us to discuss our plans and our results with all of you and hear your questions. We look forward for an exciting second half of the year, and we certainly hope to be able to deliver strong results in the next quarter again. Thank you very much for your time.

Speaker Change: Well, once again, thank you all for for for your time. Uh, it was a privilege for us to to discuss our our plans and our results with all of you and hear your your your questions.

Speaker Change: Second half of the year and we certainly hope to to be able to deliver a strong results in the next quarter again.

Speaker Change: So, thank you very much for your time.

Operator: Thank you. This will conclude today's conference. You may disconnect your lines at this time. Thank you for your participation.

Speaker Change: Thank you, this will conclude today's conference. You may disconnect your lines at this time and thank you for your participation.

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