Intercontinental Exchange Inc. · NYSE:ICE
Intercontinental Exchange — Goldman Sachs Financial Services Conference 2011
21 slides from Intercontinental Exchange's conference presentation, Dec 7, 2011
Slide 1: Goldman Sachs Financial Services Conference
Click to edit Master title style IntercontinentalExchange Goldman Sachs Financial Services Conference December 7, 2011
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
Slide 3: ICE: Leading Exchange Operator
ICE: Leading Exchange Operator A Focus on Growth and Innovation Annual Revenue $1,200 $1,150 $995 $1,000 $1,000 $813 $800 Millions $600 $574 $400 $314 $200 $156 $- 2005 2006 2007 2008 2009 2010 9-mos 2011 3
Slide 4: ICE Futures Volume and OTC Commissions
ICE Futures Volume and OTC Commissions Annual Futures and Options ADV1 +17% y/y 1,600 1,542 Thousands (contracts) 1,306 1,200 1,036 922 767 800 549 400 322 - 2005 2006 2007 2008 2009 2010 9-mos 2011 OTC Energy ADC +13% y/y $1,569 $1,600 $1,374 $1,202 $1,200 $1,117 Thousands $845 $800 $589 $400 $312
Slide 5: Brent & Gas Oil: Leading Global Benchmarks
Brent & Gas Oil: Leading Global Benchmarks Brent & Gas Oil Futures and Options Average Daily Volume 795 800 2005-2010 CAGR: 30% 606 600 435 400 376 329 245 200 164 0 2005 2006 2007 2008 2009 2010 9-mos 2011 Brent Gas Oil 5
Slide 6: Exposure to Multiple Drivers of Growth
Exposure to Multiple Drivers of Growth Secular Drivers Economic growth in emerging economies Demand for commodities rising Volatility inherent in commodity prices Increased use of hedging and risk management Emphasis on automation, transparency and clearing ICE Specific Drivers Strategic
Slide 7: Rising Demand for Commodities and Risk Management
Rising Demand for Commodities and Risk Management World Energy Consumption Rising From 2008 to 2035, energy consumption is expected to grow by 53%. Source: U.S Energy Information Administration Global Agricultural Demand By 2050 the demand for food is expected to have increased by between 70% and 10
Slide 8: A Focus on Growth Markets
A Focus on Growth Markets Geographic Diversity 2010 Consolidated Revenues Geographic diversification • 47% of revenues from outside of U.S. 100% • Customers in 70+ countries 80% • Globally relevant products 57% 53% • Brazilian power market partnership (BRIX) 60% • Investment in Brazil’s CETIP 40% 20
Slide 9: Financial Reform Shaping Global Markets
Financial Reform Shaping Global Markets 9
Slide 10: Strategic Approach to Derivatives Markets
Strategic Approach to Derivatives Markets Opportunity to Bring ICE’s Develop a expand into new platform and Brought Options platform that asset classes & Establish a expertise in transparency & markets provides benefit business new risk Nascent energy markets stability; complement transparent and by
Slide 11: Disciplined Investment
Disciplined Investment Best-in-Class Return on Invested Capital 18% 17% 15% 2009 2010 LTM 2011* CME NYX ICE 11 *LTM data as of 3Q 2011
Slide 12: Track Record of Growth, Cash Flow & Returns
Track Record of Growth, Cash Flow & Returns Cash Flow from Operations $600 $534 $541 $500 $487 $400 $375 Millions $300 $288 $200 $151 $100 $50 $0 2005 2006 2007 2008 2009 2010 9-mos 2011 12
Slide 13: Appendix
APPENDIX IntercontinentalExchange
Slide 14: Profitable Growth
Profitable Growth Adjusted EBITDA1 Growth $800 $700 $631 $600 $568 $496 Millions $400 $338 $199 $200 $56 $0 2005 2006 2007 2008 2009 2010 9-mos 2011 (1) These are non-GAAP measures. Please refer to the slides at the end of the presentation for a reconciliation to the equivalent GAAP measures.
Slide 15: ICE Summary Income Statement
ICE Summary Income Statement Change INCOME STATEMENT 3Q11 3Q10 y/y 3Q11 Rev +19%, Adj EPS +32% Total Revenues $341 $287 19% Transaction and clearing revenues +18% Total Expenses $137 $136 1% y/y Operating Income $204 $152 35% Futures & OTC energy volume +25% y/y Operating Margin 60% 53% 7 pts
Slide 16: ICE Summary Balance Sheet
ICE Summary Balance Sheet BALANCE SHEET 9/30/11 12/31/10 CHANGE Strong 9-mos operating cash flow o $541MM, + 43% y/y Assets Cash & ST Investments $497 $624 ($126) Unrestricted cash of $497MM at Sep Other Current Assets 34,726 22,952 11,774 30, 2011 Current Assets 35,223 23,576 11,647 Pro forma
Slide 17: ICE Average Daily Volume History
ICE Average Daily Volume History 2011 January February March April May June July August September October November December ICE Futures Europe 1,176,543 1,241,612 1,055,675 866,718 1,029,922 1,123,487 904,827 1,123,145 1,172,482 1,197,666 1,171,329 ICE Futures U.S. 383,157 469,596 422,741 389,364 38
Slide 18: ICE Futures Rate Per Contract History
ICE Futures Rate Per Contract History Rolling Three-Month Average Rate per Contract 2011 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec ICE Futures Europe Futures & Options $ 1.53 $ 1.50 $ 1.55 $ 1.59 $ 1.59 $ 1.57 $ 1.58 $ 1.58 $1.57 $ 1.55 $ 1.58 ICE Futures U.S. Agricultural Futures & Options $
Slide 19: Non-GAAP Net Income Attributable to ICE & EPS Reconciliation
Non-GAAP Net Income Attributable to ICE & EPS Reconciliation In thousands, except per share amounts 9 Months 9 Months 3 Months 3 Months Ended Ended Ended Ended 9/30/11 9/30/10 9/30/11 9/30/10 Net income attributable to ICE $382,900 $299,166 $132,631 $96,315 Add: Acquisition-related transaction costs
Slide 20: Non-GAAP EBITDA Reconciliation
Non-GAAP EBITDA Reconciliation In thousands 9 Months 9 Months 3 Months 3 Months Ended Ended Ended Ended 9/30/11 9/30/10 9/30/11 9/30/10 Net income attributable to ICE $382,900 $299,166 $132,631 $96,315 Plus income tax expense 184,153 153,834 59,507 47,328 Less interest and investment income (2,742)
Slide 21: Non-GAAP Operating Income, Operating Margin & Operating Expense Reconciliation
Non-GAAP Operating Income, Operating Margin & Operating Expense Reconciliation In thousands, except operating margins 9 Months 9 Months 3 Months 3 Months Ended Ended Ended Ended 9/30/11 9/30/10 9/30/11 9/30/10 Total revenues $1,000,276 $864,921 $340,778 $287,146 Total operating expenses 401,751 371,
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