Intercontinental Exchange Inc. · NYSE:ICE
Intercontinental Exchange — Credit Suisse Financial Services Forum 2012
20 slides from Intercontinental Exchange's conference presentation, Feb 10, 2012
Slide 1: Credit Suisse Financial Services Forum
Credit Suisse Financial Services Forum IntercontinentalExchange (ICE) February 10, 2012
Slide 2: Safe Harbor
Safe Harbor 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 our business that are not historical facts are forward-looking statements that i
Slide 3: ICE: A Focus on Growth and Innovation
ICE: A Focus on Growth and Innovation Annual Revenue $1,400 $1,327 $1,200 $1,150 $995 $1,000 Millions $813 $800 $600 $574 $400 $314 $200 $156 $- 2005 2006 2007 2008 2009 2010 2011 IntercontinentalExchange 3
Slide 4: ICE Futures Volume and OTC Commissions
ICE Futures Volume and OTC Commissions Annual Futures and Options ADV1 +16% y/y 1,600 1,513 Thousands (contracts) 1,306 1,200 1,036 922 767 800 549 400 322 - 2005 2006 2007 2008 2009 2010 2011 OTC Energy Average Daily Commissions +15% y/y $1,578 $1,600 $1,374 $1,202 $1,200 $1,117 $845 Thousands $800
Slide 5: Global and U.S. Oil Benchmarks
Global and U.S. Oil Benchmarks Brent, Gas Oil & WTI Futures and Options Average Daily Volume 1000 800 Thousands (contracts) 600 400 200 0 2005 2006 2007 2008 2009 2010 2011 Brent Gas Oil WTI IntercontinentalExchange 5
Slide 6: Exposure to Multiple Drivers of Growth
Exposure to Multiple Drivers of Growth Secular Drivers Increasing consumption of commodities Volatility inherent in natural resource prices Rising demand for risk management Growth in emerging markets, recovery in Western economies Regulatory change supportive of exchange/clearing model IC
Slide 7: Rising Demand for Commodities and Risk Management
Rising Demand for Commodities and Risk Management World Energy Consumption Rising From 2008 to 2035, energy consumption is expected to grow by 53%. Source: U.S Energy Information Administration Global Agricultural Demand By 2050 the demand for food is expected to have increased by between 70% and 10
Slide 8: A Focus on Growth Markets
A Focus on Growth Markets Geographic Diversity 2011 Consolidated Revenues Geographic diversification International US • 49% of revenues from outside of U.S. • Customers in 70+ countries • Globally relevant products 56% 51% • Brazilian power market partnership (BRIX) 64% • Investment in Brazil‟s CETI
Slide 9: Financial Reform Shaping Global Markets
Financial Reform Shaping Global Markets IntercontinentalExchange 9
Slide 10: Strategic Approach to Derivatives Markets
Strategic Approach to Derivatives Markets Opportunity to Bring ICE‟s Develop a platform expand into new platform and Brought Options markets expertise in that provides asset classes & Establish a new transparency & complement energy markets to transparent and benefit business risk Nascent emerging s
Slide 11: Disciplined Investment
Disciplined Investment Best-in-Class Return on Invested Capital 19% 17% 15% 2009 2010 LTM 2011* CME NYX ICE (1) ROIC=(Operating Income x (1-Tax Rate)) / (Avg Debt + Avg Shareholders Equity + Avg Minority Interest – Avg Cash, Cash Equivalents, & ST Investments) *ICE, CME LTM data as of 4Q 2011; NYX L
Slide 12: Track Record of Growth, Cash Flow & Returns
Track Record of Growth, Cash Flow & Returns Cash Flow from Operations $800 $713 $700 $600 $534 $500 $487 Millions $400 $375 $300 $288 $200 $151 $100 $50 $0 2005 2006 2007 2008 2009 2010 2011 IntercontinentalExchange 12
Slide 13: Appendix
Appendix IntercontinentalExchange 13
Slide 14: Consistent Growth
Consistent Growth Annual Futures and OTC Revenue Market Data Revenue $600 $120 $500 $100 $400 $80 $300 $60 $200 $40 $100 $20 $- $- 2006 2007 2008 2009 2010 2011 2006 2007 2008 2009 2010 2011 Futures Revenue OTC Revenue Market Data Revenue Annual Revenue and Expenses Diluted EPS $1,400 $7.00 $1,200 $
Slide 15: ICE Summary Income Statement
ICE Summary Income Statement Change INCOME STATEMENT 4Q11 4Q10 y/y Total Revenues $327 $285 15% 4Q11 revenue +15%, adj. diluted EPS +30% Total Expenses $132 $126 5% Transaction and clearing revenues +14% y/y Operating Income $195 $159 23% Operating Margin 60% 56% 4 pts Futures & OTC energy vol
Slide 16: ICE Summary Balance Sheet
ICE Summary Balance Sheet BALANCE SHEET 12/31/11 12/31/10 CHANGE Assets Low leverage with debt to trailing twelve-month EBITDA of 1.0x as of Unrestricted Cash $823 $622 $201 12/31/11 Other Current Assets 31,782 22,954 8,828 Current Assets 32,605 23,576 9,030 Unrestricted cash of $823MM; $888MM d
Slide 17: ICE Average Daily Volume History
ICE Average Daily Volume History 2012 January February March April May June July August September October November December ICE Futures Europe 1,113,282 ICE Futures U.S. 355,406 ICE Futures Canada 18,211 CCFE 753 TOTAL 1,487,652 2011 January February March April May June July August September Octobe
Slide 18: ICE Futures Rate per Contract History
ICE Futures Rate per Contract History Rolling Three-Month Average Rate per Contract 2012 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec ICE Futures Europe Futures & Options $ 1.62 ICE Futures U.S. Agricultural Futures & Options $ 2.55 ICE Futures U.S. Financial Futures & Options $ 0.90 2011 Jan Feb
Slide 19: Non-GAAP Net Income Attributable to ICE & EPS Reconciliation
Non-GAAP Net Income Attributable to ICE & EPS Reconciliation In thousands, except per share amounts 12 Months 12 Months 3 Months 3 Months Ended Ended Ended Ended 12/31/11 12/31/10 12/31/11 12/31/10 Net income attributable to ICE $509,673 $398,298 $126,773 $99,132 Add: Costs expensed related to the N
Slide 20: Non-GAAP EBITDA, Operating Income, Operating Margin & Operating Expense Reconciliation
Non-GAAP EBITDA, Operating Income, Operating Margin & Operating Expense Reconciliation In thousands, except operating margins 12 Months 12 Months 3 Months 3 Months Ended Ended Ended Ended 12/31/11 12/31/10 12/31/11 12/31/10 Net income attributable to ICE $509,673 $398,298 $126,773 $99,132 Plus incom
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