Quaker Houghton · NYSE:KWR

Quaker Houghton — Q1 2025 Earnings Presentation

38 slides from Quaker Houghton's earnings presentation, May 2, 2025

  1. Slide 1: First Quarter 2025 Earnings Presentation

    FIRST QUARTER 2025 EARNINGS PRESENTATION May 2, 2025 © 2025 Cboe Exchange, Inc. All rights reserved.

  2. Slide 2: Agenda

    Agenda Business Review Fredric Tomczyk Chief Executive Officer Dave Howson Executive Vice President, Global President Financial Review Jill Griebenow Executive Vice President, Chief Financial Officer Questions & Answers Fredric Tomczyk Dave Howson Jill Griebenow Chris Isaacson Executive Vice Preside

  3. Slide 3: Disclosures

    Disclosures Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve a number of risks and uncertainties. You can identify these statements by forward-looking words such as “may,” “might,”

  4. Slide 4: Quarterly Recap and Outlook

    QUARTERLY RECAP AND OUTLOOK Fredric Tomczyk, CEO Dave Howson, Global President 4

  5. Slide 5: 1Q25: Record Revenue in First Quarter

    1Q25: Record Revenue in First Quarter* Net revenues grew 13% Y/Y, a product of continued transaction and non-transaction growth 16% increase in Derivatives Markets organic net revenue1 Total options ADV up 23%, with a 17% increase in index options ADV and a 25% increase in multi-listed options ADV 1

  6. Slide 6: Executing on Our Strategy

    Executing on Our Strategy Refined Strategic Focus… …Driving Broad-Based Growth Every segment and category at Cboe Investing in the continued growth of produced y/y net revenue growth1 in 1Q25 our core business in Global Derivatives Options Enhancing recurring revenue +15% Derivatives opportunities t

  7. Slide 7: Derivatives: Aligned with Cyclical and Secular Trends

    Derivatives: Aligned with Cyclical and Secular Trends Cyclical Tailwinds Record Options Volumes in 1Q25 4.2 4.1 4.0 4.2 4.0 4.8 Macroeconomic and geopolitical environment Total Index Options 3.6 3.7 3.7 ◆ Record quarterly ADV New U.S. administration and shifting policy of 4.8mn, +17% y/y Investor po

  8. Slide 8: Unlocking Global Growth Potential

    Unlocking Global Growth Potential North America | Europe | Asia Pacific ◆ U.S. Equities On-Exchange matched ◆ Cboe Europe remained Europe’s ◆ Grew Cboe Japan Equities market ADV increased to $1.6bn in 1Q25 as leading market share during share to 5.4% in 1Q25 from 5.0% in compared to $1.5bn in 1Q24 c

  9. Slide 9: Cboe Data Vantage: Driving Durable Growth

    Cboe Data Vantage: Driving Durable Growth Many Avenues of Potential Growth Data Access Analytics & Execution Comprehensive suite of real-time, historical, and Global access across asset classes through a robust Proprietary analytics, platforms, and risk- reference data across asset classes technolog

  10. Slide 10: Executing on Growth Priorities

    Executing on Growth Priorities Progress Opportunity More Data Global Derivatives ◆ Derivatives delivered 16% y/y organic net revenue growth1 in 1Q25 ◆ Targeting >150mn retail accounts with smaller & more flexible products2 ◆ 0DTE SPX trading made up 55% of 1Q25 SPX activity and ADV was up 29% y/y in

  11. Slide 11: Financial Overview and Guidance

    FINANCIAL OVERVIEW AND GUIDANCE Jill Griebenow, EVP, CFO 11

  12. Slide 12: 1Q25 Financial Summary

    1Q25 Financial Summary $565 $502 $565mn $471 $418 Net Revenue +13% Y/Y 1Q22 1Q23 1Q24 1Q25 $385mn $385 $296 $320 $283 Adjusted Operating EBITDA¹ 68.1% 67.6% +20% Y/Y 62.7% 63.8% (Adjusted Operating EBITDA margin¹ of 68.1%) 1Q22 1Q23 1Q24 1Q25 $2.50 $2.50 $2.15 $1.90 $1.73 Adjusted Diluted EPS¹ +16%

  13. Slide 13: 1Q25 Net Revenue by Segment and Key Drivers

    1Q25 Net Revenue by Segment1 and Key Drivers Net Revenue Segment Net Rev. Growth Key Drivers in millions Options ◆ Higher net transaction and clearing fees +13% $565.2 CBOE - C2 - BZX - +15% ◆ Higher total options trading volume EDGX ◆ Increased market data fees $502.1 Higher access and capacity fee

  14. Slide 14: Grew 1Q25 Data Vantage Net Revenue 8% YoY Organically

    Grew 1Q25 Data Vantage Net Revenue 8% YoY Organically1 Reaffirmed 2025 organic net revenue growth rate2 target for Data Vantage business of mid to high single digits3 ◆ 1Q25 Data Vantage net revenue of $149.4 million up Data Vantage Gross Revenue 8% YoY organically1 in millions ◆ Anticipate new oppo

  15. Slide 15: 1Q25 Adjusted Operating Expenses Flat Y/Y

    1Q25 Adjusted Operating Expenses1 Flat Y/Y Adjusted Operating Expenses¹ ◆ Lower other and travel 1Q25 1Q24 % Chg (in millions) and promotional Compensation and benefits $115.9 $115.3 1% expenses were partially 7% offset by higher Depreciation and amortization 11.9 11.1 technology support Technology

  16. Slide 16: 2025 Guidance

    2025 Guidance 2025 Full-Year Guidance1 2025 Guidance as of 2025 Guidance as of 2024 Actual ($ in millions) May 2, 2025 February 7, 2025 Data Vantage3 organic net revenue growth rate Mid to High Single Digit Mid to High Single Digit 7% 2 Total organic net revenue growth rate Mid to High Single Digit

  17. Slide 17: Efficient Allocation of Capital to Create Long-Term Shareholder Value

    Efficient Allocation of Capital to Create Long-Term Shareholder Value Debt Outstanding ($ in millions) Jun. 30, Sep. 30, Dec. 31, Mar. 31, Preserving balance sheet flexibility remains 2024 2024 2024 2025 a priority 3.650% Senior Notes (10Y; Due 2027) $650 $650 $650 $650 1.625% Senior Notes (10Y; Due

  18. Slide 18: Appendix

    Appendix © 2023 Cboe Exchange, Inc. All rights reserved. 18

  19. Slide 19: Options 1Q25 Net Revenue Up 15%

    Options 1Q25 Net Revenue Up 15%, Reflecting Higher Net Transaction and Clearing Fees1 Options Selected Revenue Data 1Q25 1Q24 Chg ($ in millions) ◆ Higher net transaction and clearing fees1 Net Revenue $352.4 $307.4 15% Net transaction and clearing fees¹ $313.4 $270.3 16% from stronger total options

  20. Slide 20: North American Equities 1Q25 Net Revenue Up 2%

    North American (N.A.) Equities 1Q25 Net Revenue Up 2%, Driven by Higher Access and Capacity Fees N.A. Equities Selected Revenue Data 1Q25 1Q24 Chg ($ in millions) ◆ Access and capacity fees were up 16% Net Revenue $94.6 $92.6 2% Net transaction and clearing fees¹ $26.8 $29.4 -9% Market data fees $31

  21. Slide 21: Europe and APAC 1Q25 Net Revenue Up 18%

    Europe and APAC 1Q25 Net Revenue Up 18%, Reflecting Transaction and Non-Transaction Revenue Growth Europe and APAC Selected Revenue Data 1Q25 1Q24 Chg ($ in millions) Net Revenue $64.1 $54.1 18% ◆ Net transaction and clearing fees1 were up Net transaction and clearing fees¹ $34.2 $26.3 30% 30% Net t

  22. Slide 22: Futures 1Q25 Net Revenue Up 8%

    Futures 1Q25 Net Revenue Up 8%, Driven by Y/Y Increase in ADV Futures Selected Revenue Data 1Q25 1Q24 Chg ($ in millions) ◆ 13% Y/Y increase in ADV drove an increase in Net Revenue $32.8 $30.5 8% Net transaction and clearing fees¹ $25.7 $23.5 9% net transaction and clearing fees1 Access and capacity

  23. Slide 23: Global FX 1Q25 Net Revenue Up 16%

    Global FX 1Q25 Net Revenue Up 16%, Driven by Higher Net Transaction and Clearing Fees1 FX Selected Revenue Data 1Q25 1Q24 Chg ($ in millions) ◆ Net transaction and clearing fees1 were Net Revenue $21.3 $18.4 16% Net transaction and clearing fees¹ $18.1 $15.2 19% up 19% Non-transaction revenue $3.2 $

  24. Slide 24: 1Q25 Financial Overview

    1Q25 Financial Overview Adjusted Financial Results1 1Q25 1Q24 Chg ($ in millions, except per share) Net Revenue2 $565.2 $502.1 13% Adjusted Operating Expenses $192.4 $192.9 0% Adjusted Operating Income $372.8 $309.2 21% Adjusted Operating Margin 66.0% 61.6% 4.4pts Adjusted Operating EBITDA $384.7 $3

  25. Slide 25: Net Revenue Detail

    Net Revenue Detail Net Revenue1 ◆ Cash and Spot Markets driven 1Q25 1Q24 % Chg (in millions) by strong transaction and Cash and Spot Markets $106.7 $97.3 10% clearing fees Data Vantage $149.4 $137.7 8% ◆ Data Vantage benefited from Derivatives Markets $309.1 $267.1 16% continued international growth

  26. Slide 26: Focused on Growing the Proprietary Index Suite

    Focused on Growing the Proprietary Index Suite Index customers at Cboe typically use the toolkit of Cboe proprietary products interchangeably or in tandem, depending on market conditions ◆ Plan to further penetrate existing markets with an emphasis on education, targeting key market segments and geo

  27. Slide 27: 0DTE Adding Stability to SPX Volumes

    0DTE Adding Stability to SPX Volumes SPX ADV by Expiration in millions of contracts 3.9 4.0 65% Thursday expiration introduced 3.5 3.5 3.5 3.5 Tuesday 3.3 3.2 May 11, 2022 3.2 3.3 expiration 3.1 3.2 3.2 3.1 3.2 3.1 3.1 55% introduced 2.9 2.9 3.0 3.0 3.0 3.0 56% 3.0 April 18, 2022 2.8 2.9 2.8 55% 2.6

  28. Slide 28: 1Q25 Net Revenue by Revenue Caption

    1Q25 Net Revenue by Revenue Caption Cash and Derivatives For the Three Months Ended Data Vantage Total Spot Markets Markets March 31 (in millions) 2025 2024 2025 2024 2025 2024 2025 2024 Transaction and clearing fees $ 341.0 $ 305.2 $ - $ - $ 491.6 $ 413.3 $ 832.6 $ 718.5 Access and capacity fees -

  29. Slide 29: Net Transaction and Clearing Fees by Segment

    Net Transaction and Clearing Fees by Segment For the Three Months Ended Options N.A. Equities Europe and Asia Pacific Futures Global FX Digital1 Total June 30 (in millions) 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 Transaction and clearing fees $ 385.9 $ 384.3 $ 227.2 $ 2

  30. Slide 30: Non-GAAP Information

    Non-GAAP Information © 2023 Cboe Exchange, Inc. All rights reserved. 30

  31. Slide 31: Non-GAAP Information

    Non-GAAP Information In addition to disclosing results determined in accordance with GAAP, Cboe Global Markets has disclosed certain non-GAAP measures of operating performance. These measures are not in accordance with, or a substitute for, GAAP, and may be different from or inconsistent with non-GA

  32. Slide 32: Non-GAAP Information

    Non-GAAP Information Reconciliation of GAAP Net Revenues to Net Revenues in Constant Currency Three Months Three Months Net Revenue (in millions) Ended, Ended, March 31, 2025 March 31, 2024 Europe and Asia Pacific net revenues $64.1 $54.1 Constant currency adjustment 1.8 (0.7) 1 Europe and Asia Paci

  33. Slide 33: Non-GAAP Information

    Non-GAAP Information Non-GAAP Information (in millions, except per share amounts) 1Q24 2Q24 3Q24 4Q24 2024 1Q25 (1) This amount includes acquisition-related costs primarily from the Company’s Cboe Digital, Cboe Canada, Reconciliation of Net Income Allocated to Common Stockholders to Non-GAAP and Cbo

  34. Slide 34: Non-GAAP Information

    Non-GAAP Information Non-GAAP Information (in millions, except per share amounts) 1Q22 2Q22 3Q22 4Q22 2022 1Q23 2Q23 3Q23 4Q23 2023 (1) This amount includes ongoing acquisition related costs primarily from the Reconciliation of Net Income Allocated to Common Stockholders to Non-GAAP Company’s Cboe D

  35. Slide 35: Non-GAAP Information

    Non-GAAP Information EBITDA Reconciliations EBITDA (earnings before interest, income taxes, depreciation and amortization) and Adjusted EBITDA are widely used non-GAAP financial measures of operating performance. These metrics are presented as supplemental information that the company believes are u

  36. Slide 36: Non-GAAP Information

    Non-GAAP Information EBITDA Reconciliations EBITDA (earnings before interest, income taxes, depreciation and amortization) and Adjusted EBITDA are widely used non-GAAP financial measures of operating performance. These metrics are presented as supplemental information that the company believes are u

  37. Slide 37: Non-GAAP Information

    Non-GAAP Information Adjusted Debt to EBITDA – Trailing Twelve Months1 Adjusted Debt to EBITDA - Trailing Twelve Months¹ (in millions) 2Q24 3Q24 4Q24 1Q25 LTM Net income allocated to common stockholders $ 139.7 $ 217.4 $ 195.6 $ 249.4 $ 802.1 Interest expense, net 8.2 1.4 5.7 4.4 19.7 Income tax pro

  38. Slide 38: Thank You

    THANK YOU 38

Quaker Houghton — Q1 2025 Earnings Presentation on 6ix