Slide 1: CME Group 3Q 2018 Earnings Q&A Conference Call
CME Group 3Q 2018 Earnings Q&A Conference Call APPENDIX SLIDES As a replacement to formal conference call prepared remarks, please see the CME Group 3Q 2018 Quarterly Earnings Commentary document posted with all other CME Group 3Q 2018 earnings documents at the following link: October 25, 2018 http:
Slide 2: Forward Looking Statements
Forward Looking Statements Statements in this presentation that are not historical facts are forward-looking statements. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results ma
Slide 3: CME Group – Compelling Investment
CME Group – Compelling Investment Only Pure Play Derivatives Positioned for Growth Several Potential Exchange Tailwinds • Unmatched product diversity • Focused on customer • Increasing global relevance of and 24 hour liquidity challenges / working U.S. Energy products (WTI collaboratively Crude Oil
Slide 4: Long-Term Growth in a Variety of Environments
Long-Term Growth in a Variety of Environments (round turns, in millions) Pro Forma 21 Average Daily Volume 18.8M 18 15 12 9 CAGR 1972 – 2017 13% 6 3 0 Note: Volumes are all pro forma as if CME owned NYMEX and CBOT over the illustrated period and 2018TD ADV is through 10/23/18 4 © 2018 CME Group. All
Slide 5: Significant Momentum in 2018 To Date
Significant Momentum Top / Bottom 10 Days ADV to date* in 2018 To Date Millions 35 Number of Days Exceeding ADV of 20 Million Contracts to date in 2018 63 28 70 21 35 14 0 2014 2015 2016 2017 2018 7 0 2014 2015 2016 2017 2018 Top 10 Days ADV Bottom 10 Days ADV 5 All 2018 data as of October 23, 2018
Slide 6: Unique Assets Provide Competitive Advantages
Unique Assets Provide Competitive Advantages Q3 2018 Revenue Mix Balanced portfolio of diverse, benchmark Energy products Interest Rates 18% 27% World-class clearing, Agricultural Commodities risk management 12% expertise Equities 14% Metals Market 6% Foreign Exchange Data & Info 5% Svcs Other 12% 6
Slide 7: Open Interest Reaching All-Time Highs
Open Interest Reaching All-Time Highs 140 Open Interest at Month End (in millions) Reached all-time high of 138M contracts on March 15, 2018 Prior peak of 129.1M contracts on 130 June 14, 2017 120 2015 110 2016 2017 2018 100 90 80 7 Data through October 23, 2018 © 2018 CME Group. All rights reserved
Slide 8: Volatility Through 3Q 2018
Volatility Through 3Q 2018 S&P 500 Volatility 120.00% Eurodollars 35.00% 30.00% 100.00% 25.00% 80.00% 20.00% 60.00% 15.00% 40.00% 10.00% 20.00% 5.00% 0.00% 0.00% Eurodollars (3rd Month) S&P 500 VIX Index 16% Foreign Exchange 12.00% Treasuries 14% 10.00% 12% 8.00% 10% 8% 6.00% 6% 4.00% 4% 2.00% 2% 0%
Slide 9: Volatility Through 3Q 2018
Volatility Through 3Q 2018 70.00% Energy 90.00% Metals 80.00% 60.00% 70.00% 50.00% 60.00% 40.00% 50.00% 40.00% 30.00% 30.00% 20.00% 20.00% 10.00% 10.00% 0.00% 0.00% WTI Crude Oil Natural Gas Gold Silver 50.00% Ag Commodities 45.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% Corn So
Slide 10: Investments in Globalization Are Paying Off
Investments in Globalization Are Paying Off Electronic ADV based on origin of trade, in 000s Europe Asia 3,319 838 Data through October 19, 2018 10 © 2018 CME Group. All rights reserved.
Slide 11: Options Business – Continued Momentum
Options Business – Continued Momentum Percentage ADV Electronic Annual Options 64% 4,500,000 70% ADV by Venue YTD Reached all-time high daily volume of 9.3M contracts on February 6, 2018 60% 3,600,000 50% 2,700,000 40% 30% 1,800,000 20% 900,000 10% 0 0% Electronic Volume Open Outcry Volume Privately
Slide 12: Committed to Returning Cash to Shareholders
Committed to Returning Cash to Shareholders $ (millions) $2,000 Regular Quarterly Dividend • Regular quarterly dividends to $1,800 date in 2018 were declared/ Annual Variable Dividend paid at $0.70 per share, which (paid either end of year it reflects or first quarter of following year) was an incre
Slide 13: CME Group 3Q 2018 Adjusted Financial Results
CME Group 3Q 2018 Adjusted Financial Results1 • Revenue of $904M, up 2% • Operating Expense of $295M, down 2% • Operating Expense, excluding Licensing Fees, of $261M, up 1% • Operating Income of $609M, up 3% • Operating Margin of 67.4 percent • Net Income of $495M, up 22% • Diluted EPS of $1.45, up
Slide 14: Notes / Guidance
Notes / Guidance • Maintaining original 2018 guidance • Adjusted operating expense excluding license fees expected to be up between 2.5% and 3% to between $1.100 billion and $1.105 billion • Capital expenditures, net of leasehold improvement allowances, expected to be between $90 million and $100 mi
Slide 15: 3Q18 Reconciliation of GAAP to non-GAAP Measures
3Q18 Reconciliation of GAAP to non-GAAP Measures 15 © 2018 CME Group. All rights reserved.
Slide 16: GAAP Income Statement Trend Excluding Deferred Compensation, FX, Amortization
GAAP Income Statement Trend Excluding Deferred Compensation, FX, Amortization of Intangibles and Other Historically Noted Adjustments1 16 © 2018 CME Group. All rights reserved.
Slide 17: Interest Rate Futures – Large Open Interest Holders
Interest Rate Futures – Large Open Interest Holders CME Group Interest Rate Futures Aggregate Number of Large Open Interest Holders* Source: CFTC 2,500 Change over Selected Periods Last 4 Weeks Last 13 Weeks Last 52 Weeks ̶ 1.3% +3.6% +14.7% 2,159 2,000 1,500 1,000 YTD up 14% Peak 2,187 on September
Slide 18: FX Futures – Large Open Interest Holders
FX Futures – Large Open Interest Holders CME Group Foreign Exchange Futures Aggregate Number of Large Open Interest Holders* Source: CFTC 1,400 1,200 Change over Selected Periods Last 4 Weeks Last 13 Weeks Last 52 Weeks 1,176 ̶ 1.9% +8.5% +14.1% 1,000 800 600 YTD up 15% 400 Peak 1,199 on September 1
Slide 19: Equity Index Futures – Large Open Interest Holders
Equity Index Futures – Large Open Interest Holders CME Group Equity Index Futures Aggregate Number of Large Open Interest Holders* Source: CFTC 2,000 1,800 1,670 1,600 E-mini Russell 1,400 2000 now included 1,200 1,000 800 YTD up 6% 600 Peak 1,767 on September 4, 2018 400 200 0 2006 2007 2008 2009 2