Slide 1: Fourth Quarter and Full Year 2012 Earnings Presentation
IntercontinentalExchange Fourth Quarter and Full Year 2012 Earnings Presentation February 6, 2013
Slide 2: Forward-Looking Statement
Forward-Looking Statement 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
Slide 3: Forward-Looking Statement: GAAP and Non-GAAP Results
Forward-Looking Statement GAAP AND NON-GAAP RESULTS This presentation includes non-GAAP measures that exclude certain items the company considers are not reflective of our core business performance. We believe that the presentation of these measures provides investors with greater transparency and s
Slide 4: Earnings Conference Call – Fourth Quarter 2012
Earnings Conference Call – Fourth Quarter 2012 Jeffrey C. Sprecher Chairman and Chief Executive Officer Scott A. Hill Senior Vice President, Chief Financial Officer Charles A. Vice President, Chief Operating Officer Kelly L. Loeffler, CFA Melanie S. Skijus, CFA Vice President, Investor Relations & D
Slide 5: Consistent Execution and Growth
Consistent Execution and Growth ICE Revenues +3% y/y Financial Performance: 2012 $1,400 $1,327 $1,363 Record revenues +3% y/y to $1.4B $1,150 Operating income +4% y/y; op expense flat y/y $1,050 $995 61% operating margin vs. 60% in 2011 $813 Net income attributable to ICE +8% y/y $700 Dilu
Slide 6: ICE Financial Highlights – Fourth Quarter 2012
ICE Financial Highlights – Fourth Quarter 2012 In millions, except per share amounts Transaction & clearing revenues -4% y/y on Change INCOME STATEMENT 4Q12 4Q11 average daily volume (ADV) -1%: y/y o Energy futures +1% y/y Total Revenues $323 $327 -1% o Ag futures +13% y/y Total Expenses $131 $132
Slide 7: Revenue & Expense Detail – Fourth Quarter 2012
Revenue & Expense Detail – Fourth Quarter 2012 4Q12 Consolidated Revenues 4Q12 Consolidated Expenses SG&A Market Data & Rent & Other Deprec. & Tech. & 10% Amortization 14% Communications 9% 26% Agriculture 10% Prof. Services & Acq. Costs 13% Energy 62% 14% Financials Non-Cash Comp. 8% Cash Comp. & 3
Slide 8: ICE Futures – Fourth Quarter 2012
ICE Futures – Fourth Quarter 2012 Annual Futures & Options ADV 4Q12 futures revenues $230MM, -2% y/y +10% y/y 3,500 4Q12 ADV of 3.1MM, -1% y/y 3,000 Strength in Brent, Emissions, EU Nat Gas, Options & Ags 2,500 Seamless swaps to futures transition during the quarter 2,000 1,500 Rate Per Co
Slide 9: ICE OTC Credit – Fourth Quarter 2012
ICE OTC Credit – Fourth Quarter 2012 CDS Open Interest and Gross Notional Cleared OI (Billions) Notional (Billions) 4Q12 CDS revenues of $36MM $1,800 $40,000 $1,600 o $17MM from Creditex, 60% electronic $35,000 $1,400 $30,000 o $19MM from CDS clearing $1,200 $25,000 $1,000 $20,000 Through Feb 1,
Slide 10: Robust Cash Generation & Strong Balance Sheet
Robust Cash Generation & Strong Balance Sheet ICE Operating Cash Flow +3% y/y Solid Cash Position $800 $733 $713 $733MM in operating cash flow in 2012 $600 $534 $1.6B in unrestricted cash; no net debt $487 $1.8B undrawn credit facility $400 $375 Debt-to-EBITDA ratio of 1.2x $200 Capital Mana
Slide 11: Track Record of Growth and Expense Discipline
Track Record of Growth and Expense Discipline Annual Revenue and Expenses Diluted EPS $8.00 $7.52 $1,327 $1,363 $6.90 $1,400 $1,150 $1,200 $6.00 $995 $5.35 $1,000 $813 $4.17 $4.27 $800 $4.00 $600 $498 $534 $536 $482 $400 $319 $2.00 $200 $- $- 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 Operati
Slide 12: Expanding Global Customer Base
Expanding Global Customer Base Strong International Participation International US Global Exchange Model Increasing reliance on ICE global benchmarks Exchanges & clearing houses in US, UK, Canada 56% 51% 52% 64% Demand from emerging geographies Brazil, European and Asian expansion initiative
Slide 13: Leading Global Energy Markets
Leading Global Energy Markets Oil Futures & Options ADV Global Commodity Markets & Clearing 1,200 International commercial, industrial and financial market participants 800 Brent is the leading global oil benchmark; WTI US benchmark; Gasoil middle distillate 400 benchmark Natural gas growing a
Slide 14: Executing on New Products and Markets
Executing on New Products and Markets New Product Revenue Creating New Opportunities New products contributed $64MM in ’12 EU energy options vols tripled to 13MM contracts Emissions volume + 23% y/y, $67MM in ‘12 rev CDS futures product in development Bond platform launched with Cetip BR
Slide 15: NYSE Euronext Transaction and CSA Update
NYSE Euronext Transaction and CSA Update Strong industrial logic based on long-term growth opportunities, synergies, focused business model and global franchise Regulatory reform continues to drive migration of asset classes to exchange traded and cleared environment Demand for enhanced transpar
Slide 16: Five Themes in 2013
Five Themes in 2013 Commitment to Growth, Leadership & Customer Focus Commodity market expansion across energy and ag markets through new products, options market growth and new customers NYSE Euronext transaction regulatory approval, closing and integration Provision of cost- and capital-effi
Slide 17: Appendix
APPENDIX
Slide 18: ICE Summary Balance Sheet
ICE Summary Balance Sheet In millions BALANCE SHEET 12/31/12 12/31/11 CHANGE Low leverage with debt to trailing Assets EBITDA of 1.2x as of 12/31/12 Unrestricted Cash $1,612 $823 $789 Unrestricted cash of $1.6B; $1.1B Other Current Assets 32,138 31,782 356 debt outstanding as of 12/31/12 Current
Slide 19: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation In thousands 12 Months 12 Months 3 Months 3 Months Ended Ended Ended Ended 12/31/12 12/31/11 12/31/12 12/31/11 Net income attributable to ICE $551,576 $509,673 $129,472 $126,773 Plus income tax expense 227,955 238,268 50,841 53,711 Less interest and investment income (
Slide 20: Non-GAAP Net Income Attributable to ICE & EPS Reconciliation
Non-GAAP Net Income Attributable to ICE & EPS Reconciliation In thousands 12 Months 12 Months 3 Months 3 Months Ended Ended Ended Ended 12/31/12 12/31/11 12/31/12 12/31/11 Net income attributable to ICE $551,576 $509,673 $129,472 $126,773 Add: Costs expensed related to credit facilities - 2,634 - 2,
Slide 21: Non-GAAP Operating Income, Operating Margin & Operating Expense Reconciliation
Non-GAAP Operating Income, Operating Margin & Operating Expense Reconciliation In thousands 12 Months 12 Months 3 Months 3 Months Ended Ended Ended Ended 12/31/12 12/31/11 12/31/12 12/31/11 Total revenues $1,362,965 $1,327,491 $323,371 $327,215 Total operating expenses 535,950 534,429 131,005 132,40
Slide 22: Historical Aggregate Data
Historical Aggregate Data 2013 Trading Days* 21 19 20 22 21 21 22 21 21 23 19 22 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 Ags 263 Financials 123 Total 3,478 *Canada had 22 trading days in Jan 2013 Rolling 3 Month Rat