Intercontinental Exchange Inc. · NYSE:ICE

Intercontinental Exchange — KBW Market Structure Conference 2012

15 slides from Intercontinental Exchange's conference presentation, Nov 28, 2012

  1. Slide 1: KBW Market Structure Conference

    KBW MARKET STRUCTURE CONFERENCE IntercontinentalExchange (ICE) NOVEMBER 28, 2012

  2. 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

  3. Slide 3: ICE: Derivatives Market Leadership

    ICE: Derivatives Market Leadership  Global derivatives markets o Leadership in commodities, clearing and technology Average Daily Volumes: Futures and OTC  Broad distribution, network effect o Leading operator of global markets and clearing houses 4,000 +13% y/y o Global partnerships and infrastru

  4. Slide 4: Consistent Industry Leading Growth & Profitability

    Consistent Industry Leading Growth & Profitability Revenue Growth  Long-term double-digit growth target: $1,400 $1,327 +4% y/y o Continued record revenue and earnings $1,200 $1,150 $995 $1,040 $1,000 o First 9-mos rev growth 4%, diluted EPS up11% $813 $800  Record first 9-mos revenues driven by: $

  5. Slide 5: Robust Cash Generation & Strong Balance Sheet

    Robust Cash Generation & Strong Balance Sheet Operating Cash Flow $800 $713 Balance Sheet & Return Metrics as of Sep 30, 2012 +6% y/y $600 $573 $534  $573MM in operating cash flow in first 9-mos 2012 $487 $375 $400  $1.2B in unrestricted cash $288 $200  $2B undrawn credit facility $0  Debt-to-EB

  6. Slide 6: ICE Futures

    ICE Futures ICE Global Futures: First 9-mos 2012 Annual Futures and Options ADV1 1% y/y  Futures revenues $485MM, +5% y/y 1,513 1,564 1,600  Average daily volume (ADV) of 1.6MM, +1% y/y 1,306 1,200  Strength in Brent, Emissions and other energy futures 1,036 922 and options 767 800  Rate Per Con

  7. Slide 7: ICE OTC Energy

    ICE OTC Energy OTC Energy ADC ICE OTC Energy Markets: First 9-mos 2012 $2,000 +5% y/y $1,643  OTC energy revenues of $314MM, +4% y/y $1,600 $1,578 $1,374 o Record OTC Energy Average Daily Commissions (ADC) $1,202 of $1.6MM, +5% y/y $1,200 $1,117 o Oct ’12 OTC Energy ADC of $1.5MM $845 $800  OTC en

  8. Slide 8: ICE OTC Credit

    ICE OTC Credit OTC Credit $200 $165 $166 $167 Credit Default Swaps (CDS) Business Overview $160  First 9-mos ’12 CDS revenue of $109MM, -13% y/y  2011 CDS revenue of $167MM, +1% y/y $120 o $100MM Creditex revenues, 61% electronic $80 o $67MM revenues from CDS clearing, +12% y/y $40 $0 Leading Glob

  9. Slide 9: Company and Market Long-term Growth Drivers

    Company and Market Long-term Growth Drivers Growth Drivers Energy • Strong secular growth in globally relevant commodities • Global leader in Brent, gasoil, natural gas and power markets • Rising demand for risk management tools • Timely transition of energy swaps to futures, SDR launched Oct ‘12 •

  10. Slide 10: Leadership Position in Global Energy Markets

    Leadership Position in Global Energy Markets ADV (000) Increasing Crude Market Share 800 60%  ICE Brent futures contracts, up 15% YTD, on track 700 55% for 15th consecutive year of volume records 600 50%  ICE Brent options volume up 349% yty in 3Q12 500 45% 400 40%  Successful transition of clear

  11. Slide 11: ICE: Leader in Growth Peer Group

    ICE: Leader in Growth Peer Group Revenue and Net Income Return on Invested Capital $400 20% 19% 18% $350 17% $300 15% 15% $250 $200 10% $150 $100 5% $50 $- 0% 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 2009 2010 2011 *LTM 2012 Net Income Revenue Growth Company Peer Margin Comparisons ICE V GILD IS

  12. Slide 12: A Focus On Consistent Growth and Results

    A Focus On Consistent Growth and Results Operating Income Growth Priorities $800 1. Drive growth in core business 2. Prudent expense management $600 3. Evaluate capital & strategic opportunities $400 4. Leadership in financial reform solutions $200 5. Invest for long-term growth $0 2007 2008 2009 20

  13. Slide 13: Appendix

    APPENDIX

  14. Slide 14: 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

  15. Slide 15: Historical Futures Metrics

    Historical Futures Metrics 2012 Trading Days* 20 20 22 20 22 21 21 23 19 23 21 20 252 Average Daily Volume (000s) Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 2012 Energy 3,700 3,596 2,807 2,795 3,075 3,032 2,703 2,576 2,888 3,067 Ags 228 301 248 311 230 336 23

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