Slide 1: Fourth Quarter and Year End 2011 Earnings Presentation
IntercontinentalExchange Fourth Quarter and Year End 2011 Earnings Presentation February 8, 2012
Slide 2: Forward-Looking Statement
Forward-Looking Statement 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 sta
Slide 3: Earnings Conference Call - 4Q 2011
Earnings Conference Call - 4Q 2011 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 A. Shale, CFA Vice President, Investor Relations & Director, Inve
Slide 4: Consistent Execution and Growth
Consistent Execution and Growth SLIDE 4 Annual Revenues +15% y/y $1,400 $1,327 2011 Financial Performance $1,150 $1,200 Record revenues: futures +20%, over-the-counter (OTC) $995 $1,000 energy +14%, OTC credit +1% $813 $800 61% adj operating margins1 vs. 58% in 2010 $574 $600 Adjusted EPS1 +25
Slide 5: ICE Financial Highlights – 4Q11
ICE Financial Highlights – 4Q11 SLIDE 5 In millions, except per share amounts Change INCOME STATEMENT 4Q11 4Q10 y/y Total Revenues $327 $285 15% 4Q11 revenue +15%, adj. diluted EPS +30% Total Expenses $132 $126 5% Transaction and clearing revenues +14% y/y Operating Income $195 $159 23% o Future
Slide 6: Revenue & Expense Detail – 4Q11
Revenue & Expense Detail – 4Q11 SLIDE 6 4Q11 Consolidated Revenues 4Q11 Consolidated Expenses SG&A OTC Credit Market Data & & Rent 13% Other Tech. & 12% 11% Communications 25% Soft/Ag Futures 9% D&A 8% Prof. Services & Acq. Costs 8% 32% 3% Index/FX Futures OTC Energy Non-Cash Comp. 9% 32% Cash Comp.
Slide 7: ICE Futures Segment – 4Q11 and 2011
ICE Futures Segment – 4Q11 and 2011 SLIDE 7 Annual Futures & Options Volume1 +16% y/y 4Q11 futures revenues $143MM, +13% y/y 400 381 329 4Q11 average daily volume (ADV) of 1.4MM, +12% y/y 300 262 Strength in Brent, Gas Oil, Emissions, Russell 237 o EU Futures 4Q11 ADV of 1.0MM, +22% y/y 196 20
Slide 8: ICE OTC Segment – 4Q11 and 2011
ICE OTC Segment – 4Q11 and 2011 SLIDE 8 Annual OTC Average Daily Commissions (ADC) +10% y/y 4Q11 OTC revenues of $144MM, +16% y/y $2,500 $2,241 o Record OTC energy volume of 115MM contracts, +31% y/y $2,031 $2,000 $1,857 4Q11 OTC energy revenues of $103MM, +18% y/y o OTC Energy Average Daily Com
Slide 9: Robust Cash Generation & Returns
SLIDE 9 Robust Cash Generation & Returns ICE Operating Cash Flow +34% y/y $800 $713 Balance Sheet & Return Metrics as of Dec 31, 2011 $600 $534 $713MM in operating cash flow in 2011; $823MM in $487 unrestricted cash $400 $375 $3B credit facility secured in 2011 $288 o $0.9B outstanding debt $200
Slide 10: Consistent Growth
Consistent Growth SLIDE 10 Annual Futures and OTC Revenue Market Data Revenue $600 $120 $500 $100 $400 $80 $300 $60 $200 $40 $100 $20 $- $- 2006 2007 2008 2009 2010 2011 2006 2007 2008 2009 2010 2011 Futures Revenue OTC Revenue Market Data Revenue Annual Revenue and Expenses Diluted EPS $1,400 $7.00
Slide 11: Growth Drivers
Growth Drivers SLIDE 11 ICE Futures and OTC Energy Contract Volume 800 600 400 Annual OTC/Futures Volume (or ADV) chart since 2002 200 0 2005 2006 2007 2008 2009 2010 2011 Secular Drivers Increasing consumption of commodities Volatility inherent in natural resource prices Rising demand for ris
Slide 12: Expanding Global Customer Base
Expanding Global Customer Base SLIDE 12 International Revenues Rising International US Global Exchange Model Demand rising from emerging geographies 56% 51% 64% Exchanges and clearing houses in US, UK, Canada ICE platform web-based, accessible 49% OTC oil market demand from Asia 44% 36% Pr
Slide 13: Core Growth Continues
Core Growth Continues SLIDE 13 Oil Futures and Options ADV 1,200 Global Commodity Markets & Clearing 1,000 Energy market comprises international 800 commercial and industrial participants 600 Brent is the global oil benchmark; WTI US 400 benchmark 200 Natural gas growing as energy source; low
Slide 14: Executing on New Markets & Products
Executing on New Markets & Products SLIDE 14 New Product Revenue OTC Energy Creating New Opportunities $12 Emissions volume + 23%, $63MM in „11 rev $10 New products contributed $42MM in „11 $8 Growth in options via technology investment CDS revenues up despite market challenges $6 USDX vol
Slide 15: ICE Outlook
ICE Outlook SLIDE 15 Five Themes in 2012 • Continued growth in energy and ag complexes driven by secular trends including demand and participation from emerging markets • Regulatory change layered on top of the existing move toward clearing and electronic solutions driving a reliance on derivatives
Slide 16: Appendix
APPENDIX IntercontinentalExchange
Slide 17: ICE Summary Balance Sheet
ICE Summary Balance Sheet SLIDE 17 In millions BALANCE SHEET 12/31/11 12/31/10 CHANGE Assets Low leverage with debt to trailing twelve-month EBITDA of 1.0x as of Unrestricted Cash $823 $622 $201 12/31/11 Other Current Assets 31,782 22,954 8,828 Current Assets 32,605 23,576 9,030 Unrestricted cas
Slide 18: ICE Average Daily Volume History
ICE Average Daily Volume History SLIDE 18 2012 January February March April May June July August September October November December ICE Futures Europe 1,113,282 ICE Futures U.S. 355,406 ICE Futures Canada 18,211 CCFE 753 TOTAL 1,487,652 2011 January February March April May June July August Septemb
Slide 19: ICE Futures Rate Per Contract History
ICE Futures Rate Per Contract History SLIDE 19 Rolling Three-Month Average Rate per Contract 2012 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec ICE Futures Europe Futures & Options $ 1.62 ICE Futures U.S. Agricultural Futures & Options $ 2.55 ICE Futures U.S. Financial Futures & Options $ 0.90 201
Slide 20: Non-GAAP Net Income Attributable to ICE & EPS Reconciliation
Non-GAAP Net Income Attributable to ICE & EPS Reconciliation SLIDE 20 In thousands, except per share amounts 12 Months 12 Months 3 Months 3 Months Ended Ended Ended Ended 12/31/11 12/31/10 12/31/11 12/31/10 Net income attributable to ICE $509,673 $398,298 $126,773 $99,132 Add: Costs expensed related
Slide 21: Non-GAAP EBITDA Reconciliation
Non-GAAP EBITDA Reconciliation SLIDE 21 In thousands 12 Months 12 Months 3 Months 3 Months Ended Ended Ended Ended 12/31/11 12/31/10 12/31/11 12/31/10 Net income attributable to ICE $509,673 $398,298 $126,773 $99,132 Plus income tax expense 237,498 202,375 53,345 48,541 Less interest and investment
Slide 22: Non-GAAP Operating Income, Operating Margin & Operating Expense Reconciliation
Non-GAAP Operating Income, Operating Margin & Operating Expense Reconciliation SLIDE 22 In thousands, except operating margins 12 Months 12 Months 3 Months 3 Months Ended Ended Ended Ended 12/31/11 12/31/10 12/31/11 12/31/10 Total revenues $1,327,491 $1,149,944 $327,215 $285,023 Total operating expe
Slide 23: Strategic Approach to Growth and Global Market Position
Strategic Approach to Growth and Global Market Position SLIDE 23 Opportunity to Bring ICE‟s Develop a expand into new platform and platform that Brought Establish a Options expertise in asset classes & provides transparency & new risk markets Nascent energy markets benefit business transparent and s