Intercontinental Exchange Inc. · NYSE:ICE

Intercontinental Exchange — Q4 2009 Earnings Presentation

21 slides from Intercontinental Exchange's earnings presentation, Feb 10, 2010

  1. Slide 1: 4th Quarter and Year End 2009 Earnings Presentation

    4th Quarter and Year End 2009 Earnings Presentation February 10, 2010 www.theice.com

  2. 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

  3. Slide 3: Earnings Conference Call - 4Q and Year End 2009

    Earnings Conference Call - 4Q and Year End 2009 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 Sarah M. Stashak Vice President, Investor Relations and Dire

  4. Slide 4: ICE Financial Highlights – 4Q09

    ICE Financial Highlights – 4Q09 SLIDE 4 In millions, except per share amounts Change ƒ Record volumes, revenues, INCOME STATEMENT 4Q09 4Q08 yty operating income & cash Total Revenues $257 $207 24% generation Total Expenses $133 $110 21% ƒ Record transaction & clearing Operating Income $124 $97 27% r

  5. Slide 5: Revenue & Expense Detail – 4Q09

    Revenue & Expense Detail – 4Q09 SLIDE 5 4Q09 Consolidated Revenues by Segment 4Q09 Adj. Consolidated Expenses1 40% Futures SG&A 18% D&A 22% Market Data 11% 8% Professional & Other Services 13% Non-Cash Comp OTC 39% 49% Cash Comp Adj. 1 (In millions) 4Q09 4Q08 yty% (In millions) 4Q09 Adj. 4Q09 4Q08 y

  6. Slide 6: ICE Energy Futures – 4Q09

    ICE Energy Futures – 4Q09 SLIDE 6 ENERGY FUTURES & OPTIONS REVENUE ƒ Record $68 MM in revenue; + 28% yty $70 $66 $68 $64 $62 $60 ƒ Record ADV of 689 K contracts, up 21% yty; $53 $50 strength in Brent, Gasoil, UK utilities & emissions $40 ƒ Open interest at record levels; +24% yty at 12/31/09 $30 ƒ R

  7. Slide 7: ICE Agricultural & Financial Futures – 4Q09

    ICE Agricultural & Financial Futures – 4Q09 SLIDE 7 AG & FINANCIAL FUTURES & OPTIONS REVENUE $50 ƒ $34 MM in revenue; + 5% yty $44 $40 $38 ƒ Quarterly Sugar ADV +28% yty; USDX record $34 $34 quarter $33 $30 ƒ Open interest +15% yty for ags at 12/31/09 $20 ƒ Rate per Contract for ICE Futures U.S. $10

  8. Slide 8: ICE OTC – 4Q09

    ICE OTC – 4Q09 SLIDE 8 OTC ENERGY AVERAGE DAILY COMMISSIONS ƒ Record $127 MM in revenue; +37% yty $1,500 $1,338 o Record quarterly OTC energy revenue of $87 MM, $1,252 $1,081 $1,130 + 54% yty; record quarterly oil and power revenues $1,000 $872 ƒ Energy ADC of $1.3 MM in 4Q09; over $1.4 MM in Januar

  9. Slide 9: ICE Summary Financials – FY 2009

    ICE Summary Financials – FY 2009 SLIDE 9 In millions, except per share amounts Change ƒ Record volumes, revenues, INCOME STATEMENT FY 2009 FY 2008 operating income & cash yty generation Total Revenues $995 $813 22% o Record Futures ADV, +12% yty Total Expenses $482 $320 51% o Record OTC energy ADC,

  10. Slide 10: 2010 Guidance

    2010 Guidance SLIDE 10 Metric Guidance Date Provided 826 employees as of December 31, 2009; FY Headcount 2010 headcount expected to increase 4%-5%, 2/10/2010 excluding any M&A activity in 2010 1Q10: 74.6MM-75.2MM; FY2010: 74.7MM- Diluted Share Count 2/10/2010 75.7MM $45MM-$49MM in 2010, assuming ach

  11. Slide 11: Track Record of Growth

    Track Record of Growth SLIDE 11 Annual Revenue – ICE Total ƒ Record futures and OTC energy $995 $1,000 volume $900 $813 ƒ Over 200 new OTC energy $800 contracts $700 $600 $574 ƒ Established leading CDS clearing houses in U.S. and Europe $500 $400 ƒ Integration of TCC and Creditex $314 $300 $200 ƒ Di

  12. Slide 12: Consistently Strong Financial Returns

    Consistently Strong Financial Returns SLIDE 12 ƒ Continued growth in core business ICE – ADJUSTED EBITDA1 $600 $568 $496 ƒ Balanced focus on growth and return on $500 investment $400 $338 ƒ Disciplined M&A and capital investment $300 $199 $200 ƒ M&A synergies realization $100 $58 ƒ Pay for performan

  13. Slide 13: Strategic Diversification

    Strategic Diversification SLIDE 13 CUSTOMER DIVERSITY (OTC ENERGY REVENUES) PRODUCT DIVERSITY OTC Credit 17% Market Data/Other 11% 11% Soft/Ag Futures 2009 REVENUES 31% 4% GEOGRAPHIC DIVERSITY (CONSOLIDATED REVENUES) Index/FX Futures 100% OTC Energy 80% 65% 60% 69% 60% 26% Energy Futures 40% 20% 35%

  14. Slide 14: Successful Credit Derivatives Innovation

    Successful Credit Derivatives Innovation SLIDE 14 Key Features of ICE CDS Clearing CDS CLEARING GROWTH – U.S. & EUROPE $450 $6,000 Weekly Open Interest ƒ Widest range of cleared products, participants, $400 Weekly Vol. $5,000 geographies and services $350 Cumulative Vol. (Right Axis) $300 $4,000 ƒ N

  15. Slide 15: Platform for Continued Growth

    Platform for Continued Growth SLIDE 15 Strong Global Futures Franchise ICE’s commodities business is driven predominantly by commercial participants globally, strong performance regardless of economic climate and demonstrated new product success „ Energy and agricultural products serve as important

  16. Slide 16: Appendix

    APPENDIX Lice 16 www.theice.com

  17. Slide 17: ICE Summary Balance Sheet

    ICE Summary Balance Sheet SLIDE 17 In millions ƒ Strong operating cash flow BALANCE SHEET 12/31/09 12/31/08 CHANGE o $195 MM in 4Q09 o $487 MM for FY09 Assets Cash & ST Investments $554 $287 $268 ƒ Debt to trailing twelve-month EBITDA down to 0.5x Other Current Assets 18,905 12,266 6,640 Current Ass

  18. Slide 18: Non-GAAP Adjusted Net Income & EPS

    Non-GAAP Adjusted Net Income & EPS SLIDE 18 In thousands, except per share amounts 12 Months 3 Months 12 Months 3 Months Ended Ended Ended Ended 12/31/09 12/31/09 12/31/08 12/31/08 Net income attributable to ICE $315,988 $84,254 $300,972 $48,855 Add:NCDEX impairment costs 9,276 - 15,700 15,700 Add:

  19. Slide 19: Non-GAAP Adjusted EBITDA

    Non-GAAP Adjusted EBITDA SLIDE 19 In thousands 3 Months 3 Months 12 Months 12 Months 12 Months 12 Months 12 Months Ended Ended Ended Ended Ended Ended Ended 12/31/2009 12/31/2008 12/31/2009 12/31/2008 12/31/2007 12/31/2006 12/31/2005 Net income attributable to ICE $84,254 $48,855 $315,988 $300,972 $

  20. Slide 20: Non-GAAP Adjusted Operating Income & Operating Margin

    Non-GAAP Adjusted Operating Income & Operating Margin SLIDE 20 In thousands, except operating margins 12 Months 3 Months 12 Months 3 Months Ended Ended Ended Ended 12/31/09 12/31/09 12/31/08 12/31/08 Total Revenues $994,788 $256,554 $813,078 $207,260 Operating income $ 512,619 $ 123,870 $493,534 $ 9

  21. Slide 21: Expense Reconciliation – 4Q09

    Expense Reconciliation – 4Q09 SLIDE 21 In thousands 3 Months Ended 12/31/09 Total operating expenses $ 132,684 Add: severence costs (3,886) Add: True up of certain state tax items (comp. & SG&A) (5,623) Adjusted total operating expenses $ 123,175 21

Intercontinental Exchange — Q4 2009 Earnings Presentation on 6ix