Intercontinental Exchange Inc. · NYSE:ICE
Intercontinental Exchange — Barclays Global Finance Services Conference 2013
19 slides from Intercontinental Exchange's conference presentation, Sep 9, 2013
Slide 1: Barclays Global Finance Services Conference
Barclays Global Finance Services Conference IntercontinentalExchange (ICE) September 9, 2013
Slide 2: Safe Harbor
Safe Harbor CAUTIONARY STATEMENT REGARDING FORWARD LOOKING STATEMENTS This presentation may contain “forward-looking statements” made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements regarding IntercontinentalExchange’s business that are not
Slide 3: ICE: Derivatives Market Leadership
ICE: Derivatives Market Leadership Revenue Growth $1,400 $1,327 $1,363 $1,200 $1,150 $995 $1,000 +1% y/y $800 $724 $600 $400 $200 $0 2009 2010 2011 2012 1H13 › Leading operator of global markets & clearing houses › Global energy markets leader › Customer-centric solutions for regulatory reform › Fin
Slide 4: Volumes Driven by Strong Fundamental Trends
Volumes Driven by Strong Fundamental Trends Average Daily Volumes 4,000 -1% y/y 3,500 3,000 2,500 2,000 1,500 1,000 500 0 2009 2010 2011 2012 1H13 Energy Agriculture Index & FX › Demand for risk management continues to grow in importance › Global product set and clearing solutions Note: Energy volum
Slide 5: Consistent Industry Leading Profitability
Consistent Industry Leading Profitability Net Income Attributable to ICE $600 $552 $510 $500 $398 $400 +6% y/y (1) $316 $310 $300 $200 $100 $0 2009 2010 2011 2012 1H13 › Strong operating efficiency; 63% adj. operating margin in 1H13 › Long-term double-digit earnings growth target › Prudent investmen
Slide 6: ICE Energy Futures
ICE Energy Futures Energy Futures Volume 800 700 600 500 -2% y/y 400 300 200 100 0 2009 2010 2011 2012 1H13 › Global leader in Brent, Gasoil, Natural Gas and Power markets › Several OI records across energy products in 1H13; August Energy OI up 24% y/y › Expanded into EU Natural Gas & Power markets
Slide 7: Leadership Position in Global Energy Markets
Leadership Position in Global Energy Markets Increasing Crude Market Share ADV (000) 800 700 › 62 Energy products introduced in 1H13 600 500 › Cross margining with Brent and WTI, 400 Gasoil, Heating Oil and Natural Gas 300 200 › Commitment of Traders reports 100 demonstrate strong commercial - parti
Slide 8: ICE Agricultural Markets
ICE Agricultural Markets Ag Futures Volume 80 70 60 50 +5% y/y 40 30 20 10 0 2009 2010 2011 2012 1H13 › Ag YTD August Volumes of 45.8MM, +3% y/y › Solid trends in ADV and RPC in 2013 8
Slide 9: ICE Financial Markets
ICE Financial Markets Fin Futures Volume 60 50 40 30 -9% y/y 20 10 0 2009 2010 2011 2012 1H13 › Leading indices, including Russell equity indexes and USDX › Aug YTD USDX: ADV +37% y/y › Aug YTD FX: ADV +5% y/y 9
Slide 10: ICE: Leading Global CDS Clearing Solution
ICE: Leading Global CDS Clearing Solution CDS Clearing Revenue $80 $70 $67 $66 $60 $60 +19% y/y $50 $40 $38 $31 $30 $20 $10 $- 2009 2010 2011 2012 1H13 › Through August 30, $44TR in CDS cleared, including $2TR in buy-side clearing › Over 400 instruments cleared › Mandatory CDS index clearing began 1
Slide 11: Robust Cash Generation & Strong Balance Sheet
Robust Cash Generation & Strong Balance Sheet Operating Cash Flow $800 $733 $713 $600 $534 $487 +4% y/y $382 $400 $200 $0 2009 2010 2011 2012 1H13 › $382MM in operating cash flow in 1H13, up 4% › $1.5B in unrestricted cash and short-term investments at 6/30/13 › $2.1B undrawn credit facility › Debt-
Slide 12: Robust Cash Generation & Leading ROIC
Robust Cash Generation & Leading ROIC Return on Invested Capital 20% 15% 10% 5% 0% 2011 2012 LTM 2Q13 NYX CME NDAQ S&P 500* ICE WACC › Dividend and debt reduction post NYSE Euronext acquisition › Stock-buyback and M&A possible post-debt reduction ROIC = (Operating Income x (1-Tax Rate) ) / (Avg Debt
Slide 13: ICE NYX Transaction Benefits
ICE NYX Transaction Benefits Establishes Premier Market Operator › Leading global equities and derivatives franchise spanning multiple asset classes › Proven clearing platform to drive growth initiatives › Pre-eminent global equities and listing franchise › Deep & experienced management team Signifi
Slide 14: A Focus On Consistent Growth and Results
A Focus On Consistent Growth and Results Operating Income Growth $900 $750 $600 $450 $300 $150 $0 2009 2010 2011 2012 1H13 KEY METRICS 1H13 › Maintain solid adj. operating margin 63%, +100 bps y/y › Best in class earnings growth +7% y/y › Best in class returns 18% ROIC › Strong expense management -4
Slide 15: Appendix
APPENDIX IntercontinentalExchange
Slide 16: Non-GAAP Net Income Attributable to ICE & EPS Reconciliation
Non-GAAP Net Income Attributable to ICE & EPS Reconciliation In thousands 6 Months 6 Months 3 Months 3 Months Ended Ended Ended Ended 6/30/13 6/30/12 6/30/13 6/30/12 Net income attributable to ICE $288,765 $291,022 $153,323 $143,157 Add: NYSE Euronext transaction costs and banker fee relating to ICE
Slide 17: Non-GAAP Operating Income, Operating Margin & Operating Expense Reconciliation
Non-GAAP Operating Income, Operating Margin & Operating Expense Reconciliation In thousands 6 Months 6 Months 3 Months 3 Months Ended Ended Ended Ended 6/30/13 6/30/12 6/30/13 6/30/12 Total revenues $723,506 $716,407 $371,609 $351,213 Total operating expenses 298,736 275,809 146,917 135,797 Less: NY
Slide 18: ICE Summary Balance Sheet
ICE Summary Balance Sheet In millions BALANCE SHEET 6/30/13 12/31/12 CHANGE Low leverage with debt to trailing EBITDA of 0.9x as of 6/30/13 Assets Unrestricted Cash & ST Inv. $1,494 $1,612 -$119 Unrestricted cash and st investments of $1.5B Other Current Assets 35,692 32,138 3,554 Current Assets 37,
Slide 19: Historical Aggregate Data
Historical Aggregate Data 2013 Trading Days* 21 19 20 22 22 20 22 22 20 23 20 21 Average Daily Volume (000s) Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Energy 3,093 3,149 3,379 3,380 2,947 2,835 2,668 2,607 Ags 263 348 231 312 223 376 206 239 Financials 123 1
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