Intercontinental Exchange Inc. · NYSE:ICE
Intercontinental Exchange — Sandler Global Exchange & Brokerage Conference 2013
18 slides from Intercontinental Exchange's conference presentation, Jun 7, 2013
Slide 1: Sandler Global Exchange & Brokerage Conference
Sandler Global Exchange & Brokerage Conference IntercontinentalExchange (ICE) June 7, 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: Safe Harbor (cont)
Safe Harbor (cont) PARTICIPANTS IN THE MERGER SOLICITATION ICE, NYSE Euronext and their respective directors, executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies in respect of the transactions described in the Agreement and
Slide 4: ICE: Derivatives Market Leadership
ICE: Derivatives Market Leadership Global derivatives markets o Leadership in commodities, clearing and technology Broad distribution, network effect Average Daily Volume* o Leading operator of global markets and clearing houses 4,000 +1% y/y o Global partnerships and infrastructure investments
Slide 5: Consistent Industry Leading Growth & Profitability
Consistent Industry Leading Growth & Profitability Revenue Growth 2013: Commitment to Growth $1,400 $1,327 $1,363 $1,150 $1,200 1Q13 Financial Performance: $995 $1,000 o Revenue $352MM, -4% y/y $813 $800 o Adj1 net income attributable to ICE +1% y/y $600 -4% y/y $352 $400 o Adj1 diluted EPS +1% y/
Slide 6: ICE Futures
ICE Futures* 1Q13 futures revenues $255MM, -5% y/y Annual ADV* +1% y/y 1Q13 average daily volume (ADV) of 3.6MM, -4% y/y 3,600 o Apr ADV +18% y/y; Brent +31% y/y, Nat Gas +7% y/y 3,200 2,800 1Q13 record volume quarter in WTI & Coal options; 2,400 RBOB Gasoline & Coffee futures 2,000 Rate Per
Slide 7: ICE Energy Futures
ICE Energy Futures* ICE Energy Futures Markets Annual Energy Futures Volumes* • Global leader in Brent, Gasoil, Natural Gas, Power and Emissions markets 800 • Completion of ICE Endex transaction in 700 March expands ICE into EU nat gas & power 600 markets 500 • Transition of energy swaps to futures
Slide 8: Leadership Position in Global Energy Markets
Leadership Position in Global Energy Markets Increasing Crude Market Share ADV (000) ICE Brent futures & options contracts growth 800 accelerating into 2013, YTD Apr ADV +21% y/y 600 ICE Brent options volume up 81% y/y YTD Apr YTD Apr ADV: ICE Other Oil +22% y/y, Emissions & 400 Other +30% y/y
Slide 9: ICE Agricultural and Financial Markets
ICE Agricultural and Financial Markets ICE Ag Futures Markets Annual Ag Futures Volumes 70 • Ag open interest 2.5MM contracts Apr „13 60 • Global ag benchmarks poised for growth with 50 improved commodity financing in EU 40 • Solid trends in RPC, global customer growth +6% y/y 30 • Full transition t
Slide 10: ICE Credit Derivatives
ICE Credit Derivatives CDS Open Interest & Gross Notional Cleared Leading Global CDS Clearing Solution OI (Billions) Notional (Billions) $1,800 $45,000 Through May 24, $40TR in CDS cleared, $1.5TR OI, $1,600 $40,000 1.3MM trades cleared; over 400 clearable CDS $1,400 $35,000 products; $831B in buy
Slide 11: Robust Cash Generation & Strong Balance Sheet
Robust Cash Generation & Strong Balance Sheet Operating Cash Flow Balance Sheet & Return Metrics as of Mar 31, 2013 $800 $733 $713 $150MM in operating cash flow in 1Q13 $600 $534 $487 $1.4B in unrestricted cash $375 $400 $2.0B undrawn under existing credit facility -19% y/y o $1.7B available f
Slide 12: ICE NYX Transaction Timeline
ICE NYX Transaction Timeline Competition Review 2/15/13 3/18/13 Filed for US 4/23/13 referral by May/June competition EC confirmed UK, Spain & 2013 1/16/13 clearance to oversee • Phase 1 25 working days Portugal to Anticipate Filed with US under the the European HSR Act European submission • Phase 2
Slide 13: ICE: Leader in Growth Peer Group
ICE: Leader in Growth Peer Group Diluted EPS Growth Return on Invested Capital $8.00 $7.52 20% 19% 18% 18% $6.90 17% 15% $6.00 15% $5.35 $4.17 $4.27 $4.00 10% $2.00 5% $- 0% 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 Growth Company Peer Margin Comparisons ICE ISRG QCOM GILD PCLN ORCL CELG ALX
Slide 14: A Focus On Consistent Growth and Results
A Focus On Consistent Growth and Results Operating Income Growth Five Themes in 2013 1. Commodity market expansion in $750 energy & ag markets across new $600 products, customers and options $450 2. NYSE Euronext deal regulatory $300 approval, closing and integration $150 3. Provision of cost- and c
Slide 15: Appendix
APPENDIX
Slide 16: Non-GAAP Net Income Attributable to ICE & EPS Reconciliation
Non-GAAP Net Income Attributable to ICE & EPS Reconciliation In thousands 3 Months 3 Months Ended Ended 3/31/13 3/31/12 Net income attributable to ICE $135,442 $147,865 Add: NYSE Euronext transaction costs and banker fee relating to ICE Endex acquisition 17,089 - Add: Duplicate rent expense 3,348 -
Slide 17: Non-GAAP Operating Income, Operating Margin & Operating Expense Reconciliation
Non-GAAP Operating Income, Operating Margin & Operating Expense Reconciliation In thousands 3 Months 3 Months Ended Ended 3/31/13 3/31/12 Total revenues $351,897 $365,194 Total operating expenses 151,819 140,012 Less: NYSE Euronext transaction costs and banker fee relating to ICE Endex acquisition (
Slide 18: 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 3,149 3,379 3,380 Ags 263 348 231 312 Financials 123 144 199 152 Total 3,478 3,640 3,809 3,844
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