Page 1

[ B ] Webcast : 3 CONFERENCE CALL ( English ) 10:00 a.m. ( Brasília ) / 8:00 a.m. ( NYC ) Brazil : +55 ( 11 ) 3181-8565 +55 ( 11 ) 4210-1803 U.S. Toll Free : +1 ( 844 ) 204-8942 U.S. Dial - In : +1 ( 412 ) 717-9627 Password : B3 1.htm BRASIL BOLSA BALCÃO 3Q21 https://choruscall.com.br/b3/3q2 Webcast : CONFERENCE CALL ( Portuguese ) 11:00 a.m. ( Brasília ) / 9:00 a.m. ( NYC ) Brazil : +55 ( 11 ) 3181-8565 +55 ( 11 ) 4210-1803 U.S. Toll Free : +1 ( 844 ) 204-8942 U.S. Dial - In : +1 ( 412 ) 717-9627 Password : B3 1.htm https://choruscall.com.br/b3/3t2 https://ri.b3.com.br B3 ANNOUNCES RESULTS FOR THE THIRD QUARTER OF 2021 São Paulo , November 11 , 2021 - B3 S.A. - Brasil , Bolsa , Balcão ( " B3 " or " Company " ; B3SA3 ) reports today its third quarter ( 3Q21 ) earnings . Total revenues reached R $ 2,513.2 million , in line with the same period of the previous year , while recurring EBITDA totaled R $ 1,820.2 million , up by 9.3 % . The Company's recurring net income¹ totaled R $ 1,291.6 million . MESSAGE FROM B3'S MANAGEMENT In a scenario of higher inflation and , as a result , rising interest rates , our markets continue to show solid performance . In equities , ADTV amounted to R $ 31.5 billion , up by 9.6 % compared to 3Q20 , and 4.9 % down against 2Q21 ( partially explained by the summer vacation seasonality ) . In listed derivatives , ADV totaled 4.6 million contracts , up by 16.3 % and 8.1 % compared to the 3Q20 and 2Q21 , respectively . In 3Q21 , public offerings continued to show strong activity , with R $ 48.5 billion raised in 17 IPOs and 8 follow - ons . The number of individual investors in the equities market increased by 4.1 % compared to 2Q21 , reaching 3.3 million individuals . Still on IPOs , in August , the Brazilian Corporate Law was amended to authorize the adoption of " super voting rights , " which makes it possible to create new classes of shares with greater proportional voting rights in companies that intend to go public . B3 believes that the authorization for the super voting share can positively impact the number of IPOs in the country . In 3Q21 , revenues totaled R $ 2.5 billion , down by 0.9 % and 6.1 % compared to 3Q20 and 2021 , respectively . It is important to note that revenues in 3Q20 and 2021 were positively impacted by the reversal of non - recurring provisions - excluding these reversals , revenues in this quarter would have been 7.1 % greater than in 3Q20 , and 1.4 % lower than in 2Q21 , respectively . Recurring net income was R $ 1.3 billion , up by 13.0 % and 4.9 % compared to 3Q20 and 2Q21 , respectively . Another highlight of the quarter was the issuance , in September , of international bonds amounting to USD700 million , diversifying the Company's sources of funding , and providing liquidity which will be used for debt redemptions scheduled for 2022. The bonds have a 10 - year maturity , with semi - annual interest payments of 4.125 % p.a. , and are the first sustainability - linked bonds issued by an exchange in the world . In this transaction B3 has committed itself to two diversity goals : ( i ) creating a diversity index by Dec / 24 ; and ( ii ) increasing the share of women in leadership positions at B3 to a minimum of 35.0 % by Dec / 26 . After this issuance , the Company reviewed its financial leverage forecast for the year , from up to 1.5x to up to 2.0x Gross Debt to recurring LTM EBITDA . After the end of 3Q21 , B3 signed a commitment to acquire 100 % of Neoway , a technology company specialized in big data analytics and artificial intelligence for businesses . The total value of the acquisition is R $ 1.8 billion , and deal closing is subject to approval by CADE ( Administrative Council for Economic Defense ) , CVM ( Brazilian Securities Commission ) and B3's Extraordinary Shareholders ' Meeting ( ESM - to be held on December 9th , according to the Call Notice ) . The acquisition of Neoway is an important step in the Company's strategy to diversify its revenues and expand its presence in attractive markets linked to its core business , in this case , data and analytics . Neoway will strengthen B3's development capabilities and accelerate the go - to - market of data and analytics products for the financial and capital markets , as well as credit and retail , serving both financial and non - financial customers . Still in October , B3 agreed to invest USD10 million in the series B capital raising round of Pismo Holdings , a techfin that offers a platform for processing financial services in the cloud . With this investment , B3 seeks to build an even closer relationship with a key supplier for future developments in its markets . The conclusion of the investment is subject to CVM approval . Finally , after getting the regulatory approvals from CADE and CVM , B3 concluded the investment of R $ 600 million in Dimensa . B3 holds a 37.5 % stake in the company , while TOTVS holds 62.5 % . ( In R $ millions ) Total revenues Net revenues Expenses Financial result Net income Adjusted expenses² Recurring EBITDA EBITDA margin ( recurring ) Recurring net income 3Q21 2,513.2 2,254.7 ( 706.8 ) 20.5 1,176.1 ( 343.3 ) 1,820.2 80.7 % 1,291.6 3Q20 3Q21 / 3Q20 ( % ) 2,535.5 2,288.8 ( 648.5 ) ( 26.4 ) 1,136.5 ( 283.8 ) 1,665.7 79.2 % 1,143.2 -0.9 % -1.5 % 9.0 % 3.5 % 21.0 % 9.3 % 149 bps 13.0 % 2Q21 2,675.8 2,417.7 ( 749.3 ) 132.1 1,193.3 ( 324.4 ) 1,853.3 80.9 % 1,231.0 Guidance for 2021 REAFFIRMED : ( i ) Capex ( R $ 420 million to R $ 460 million ) ; ( ii ) Revenue - linked expenses ( R $ 225 million to R $ 265 million ) ; ( iii ) Depreciation and amortization ( R $ 1,060 million to R $ 1,110 million ) ; ( iv ) Payout ( 120 % to 150 % of corporate net income ) ; and ( v ) Adjusted operating expenses budget ( from R $ 1,295 million to R $ 1,345 million ) . 3Q21 / 2Q21 ( % ) -6.1 % -6.7 % -5.7 % -84.5 % -1.4 % 5.8 % -1.8 % -22 bps 4.9 % REVISED as per Material Fact published on 09/15/21 : ( i ) Leverage ( from 1.5x to up to 2.0x of gross debt / recurring EBITDA LTM in the last 12 months ) . 1 See the conciliation on page 5 Expenses adjusted for : ( i ) depreciation and amortization ; ( ii ) long - term share - based incentive program - principal and charges ; ( iii ) provisions ; ( iv ) revenue - linked expenses and ( v ) non - recurring expenses with contract termination . INFORMAÇÃO PÚBLICA - PUBLIC INFORMATION