Intercontinental Exchange Inc. · NYSE:ICE
Intercontinental Exchange — Q1 2014 Earnings Presentation
19 slides from Intercontinental Exchange's earnings presentation, May 27, 2014
Slide 1: Q1'14 Update May 2014
Q1’14 UPDATE MAY 2014 STRICTLY CONFIDENTIAL
Slide 2: Disclaimer
DISCLAIMER By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations: This document has been prepared by Euronext Group N.V. (the “Company”) solely for the purposes of the Q1’14 update presentation to be held o
Slide 3: Introduction
INTRODUCTION Completion of separation of Euronext from ICE has enabled the management to start delivering on its strategy Q1’14 performance has been strong with positive momentum Robust listing performance with over 18bn raised in Q1’14 Strong trading activity with Euronext cash equity volumes up 22
Slide 4: Strong Quarter for Listing
STRONG QUARTER FOR LISTING Euronext capital raised through IPOs ( mm) Comments Strong quarter both in terms of number of new listings and 2,138 in terms of capital raised (Amsterdam) 7 (Amsterdam) Q1’13 Q1’14 (Paris) Euronext number of IPOs (Lisbon) 6 Robust pipeline for the coming quarters 2 Q1’13
Slide 5: Dynamic Cash Trading
DYNAMIC CASH TRADING Key business figures Comments Daily volumes on Euronext stocks 1 ( bn/day) +39% Strong increase in volumes Q/Q benefiting from market recovery 10 9 Stable market share (65.6% in Q1’14 vs. 64.7% in Q1’13) 8 Global revenue per trade stable due to fee increases in 7 February 2014 a
Slide 6: Derivatives Trading
DERIVATIVES TRADING Key business figures Comments Derivatives daily trades down 6% Q/Q, due to lower volatility and Euronext number of contracts traded (lots in mm) market share loss in individual equity options. Index future trades +2% and Index options +7% 40 37 38 34 34 Quarterly revenues impacte
Slide 7: I Financials
I Financials 7
Slide 8: Simplified Income Statement
SIMPLIFIED INCOME STATEMENT Income statement (unaudited¹) Comments ( mm) Q1’13 Q1’14 Strong European IPO and trading activity with Q1’14 equity volumes up 24% year on year for Third party revenue 98 106 Euronext Related party revenue 22 7 Total revenues 120 114 Other businesses, apart from related p
Slide 9: Adjusted and Estimated Revenues
ADJUSTED AND ESTIMATED REVENUES Adjusted and estimated revenues (unaudited 1 ) Comments ( mm) Q1’13 Q1’14 Strong positive volumes growth experienced in listing and cash trading on the cusp of European recovery Listing 11 14 Other businesses, apart from related party revenue, remained largely stable
Slide 10: Operating Expenses
OPERATING EXPENSES Operating expenses 1 Comments Q1’13 inflated by exceptional items ( mm) FY13 Q1’13 Q1’14 Q1’14 not fully representative of the run rate for the other quarters of the year Salaries and employee benefits (133) (37) (31) Strong confidence regarding achievement of 60mm efficiencies Sy
Slide 11: Profitability
PROFITABILITY Summary of reported income statement (unaudited 1 ) Operational margins (unaudited Revenue evolution and profitability (unaudited 1 ) 1 ) ( mm) FY13 Q1’13 Q1’14 Adjusted and estimated revenue ( mm) Third party revenue 387 98 106 Reported EBITDA margin Related party revenue 95 22 7 433
Slide 12: Balance Sheet
BALANCE SHEET Balance sheet summary Comments ( mm) FY13 Q1’14 All short-term related party loans and borrowings with the Non-current assets Parent linked to historical NYSE Euronext Group have been Property, plant and equipment 28 29 cash-settled Goodwill and other intangibles 324 321 Euronext is ta
Slide 13: Cash Flow Statement
CASH FLOW STATEMENT Cash flow statement (unaudited 1 ) ( mm) Q1’13 Q1’14 Net cash provided by / (used in) operating activities 29 28 Net cash provided by / (used in) investing activities (2) (3) o/w capital expenditures (1) (5) Net cash provided by / (used in) financing activities 16 (45) Non cash e
Slide 14: Medium to Long Term Objectives
MEDIUM TO LONG TERM OBJECTIVES Targeted medium to long term adjusted and estimated revenue CAGR of c.5% 2 Operating optimisation and efficiencies of c. 60mm 1 by the end of the next 3 years Improving margins, with medium to long term EBITDA margin target of approximately 45% 2 Targeted medium to lon
Slide 15: II Concluding remarks
fi eorex Il | Concluding remarks 15
Slide 16: Key Takeaways
KEY TAKEAWAYS Strong Q1 performance Confidence in positive momentum with structural and cyclical tailwinds Cost discipline and synergy plan on track Confidence in medium to long term targets 16
Slide 17: Euronext: An Attractive Investment Proposition
EURONEXT: AN ATTRACTIVE INVESTMENT PROPOSITION Leading pan-European equities and derivatives platform with unique single order book model creating 1 unrivalled depth and liquidity 2 Established and diversified sources of revenues 3 State-of-the-art multi-product, multi-currency and low latency techn
Slide 18: III Appendix
III Appendix 18
Slide 19: Adjusted and Estimated Revenues Reconciliation
ADJUSTED AND ESTIMATED REVENUES RECONCILIATION Q1f14 adjusted and estimated revenues (unaudited, mm) 150 12 7 114 119 9 6 22 100 (7) 13 44 50 14 0 Listing Cash Derivatives Market data Post-trade Market Related party Total Estimated Related party Adjusted trading trading & indices (Interbolsa) soluti
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