Intercontinental Exchange Inc. · NYSE:ICE
Intercontinental Exchange — Merger or Acquisition (June 2008)
15 slides from Intercontinental Exchange's merger presentation, Jun 3, 2008
Slide 1: Serving Dealers in Global Credit Markets: Transaction Summary
Serving Dealers in Global Credit Markets IntercontinentalExchange and Creditex Group Transaction Summary June 3, 2008
Slide 2: Forward-Looking Statements
2 Certain statements in this presentation may contain forward-looking information regarding IntercontinentalExchange, Inc., Creditex Group Inc., and the combined company after the completion of the merger that are intended to be covered by the safe harbor for "forward-looking statements" provided by
Slide 3: Transaction Details
Transaction Details
Slide 4: Transaction Overview
Transaction Overview 4 Creditex acquisition diversifies ICE into the expanding $62 trillion Credit Default Swaps (CDS) market in partnership with a market leader Enhances ICE's leadership among peers in the over-the-counter (OTC) markets Based on annualized 1Q08, Creditex revenue in excess of $200 m
Slide 5: Compelling Strategic Rationale
5 Compelling Strategic Rationale Support expansion of over-the-counter (OTC) execution and processing services to the fast-growing $62+ trillion credit derivatives market Benefit from Creditex's strong revenue growth and attractive business model Diversify ICE revenues into the strategic CDS asset c
Slide 6: Summary Terms
6 Summary Terms Expect to be accretive in 12-18 months from closing Estimated $0.04-$0.06 per share dilution on a GAAP-basis in the 2nd half of 2008 Reflects 13x multiple, based on annualized 1Q08 EBITDA of $12.1M ICE will acquire 100% of the outstanding common stock, preferred stock of Creditex, an
Slide 7: ICE: Market Leader Positioned for Continued Growth
7 ICE: Market Leader Positioned for Continued Growth Combined company LTM revenue of approximately $832 MM Diversified product offering across multiple markets and geographies High growth markets and track record of success in both voice and electronic execution models Combines leaders in innovation
Slide 8: About Creditex Group
About Creditex Group
Slide 9: Creditex Overview
9 Creditex Overview Creditex Q-WIXX T-Zero Creditex is a global leader in the execution and processing of Credit Default Swaps. Business ¡ Dealer - - to - - Dealer Marketplace ¡ E lectronic, hybrid and voice execution services for CDS ¡ Post - - Trade Processing Services ¡ Workflow, connectivity and
Slide 10: Creditex Group Financial Profile
10 Creditex Group Financial Profile Annual Revenue and EBITDA ($ in millions) (1) 1Q08 Financial Performance ($ in millions) 2005 2006 2007 1Q07 1Q08 + 49% Growth + 52% CAGR (1) The 2006 figures include the results of CreditTrade from November 21 through December 31. The 2007 figures include the ful
Slide 11: Creditex Trading Volume Growth
11 Creditex Trading Volume Growth Creditex Growth in Notional Trading(1) ($ in billions) Growth Drivers A leading player in the most liquid CDS products in the U.S. and Europe, including single names and indices Pioneered electronic trading, launching the RealTime platform in 2001 and electronic tra
Slide 12: CDS: One of Fastest Growing OTC Markets
12 CDS: One of Fastest Growing OTC Markets + 95% CAGR Indexation and E-Trading Tranches and Options Fixings Correlation volatility Documentation backlog LCDS, ABX Continued backlog Subprime and credit crisis Greater regulatory scrutiny Source: ISDA (1) Notional outstanding represents the total under
Slide 13: Addressing Calls for Improved OTC Processing
13 Addressing Calls for Improved OTC Processing Dramatic increases in CDS volume growth have prompted calls by market participants and regulators for improved OTC processing infrastructure "As trading volumes have surged, so has price volatility, but market infrastructure has not sufficiently evolve
Slide 14: Creditex Group Electronic Innovations for Dealer Market
14 Creditex Group Electronic Innovations for Dealer Market Anonymous electronic big block execution for indices, single-names and index tranches Creates additional trading opportunities Innovative e-trading model being embraced by CDS traders in North America Multi-lateral auction for curve risk man
Slide 15: Combining Strengths to Serve the Growing CDS Market
15 Combining Strengths to Serve the Growing CDS Market Brings proven M&A integration skill and the leaders in respective asset classes together Combines Creditex's advanced CDS platform with ICE's leading OTC platform Provides immediate solutions for improved OTC processing and infrastructure in cre
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