Slide 1: First Quarter 2015 Earnings Presentation
(NYSE: ICE) First Quarter 2015 Earnings Presentation May 5, 2015
Slide 2: Forward-Looking Statement and Legends
Forward-Looking Statement and Legends 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 ICE’s business that are
Slide 3: Earnings Conference Call - First Quarter 2015
Earnings Conference Call - First Quarter 2015 Jeffrey C. Sprecher Chairman and Chief Executive Officer Scott A. Hill Chief Financial Officer Charles A. Vice President, Chief Operating Officer Kelly Loeffler, CFA Isabel Janci SVP, Corporate Communications, Marketing & Sr. Director, Investor Relations
Slide 4: Record Earnings Performance
Record Earnings Performance Net Revenues Strong 1Q15 Financial Performance 3,000 25% ▪ Net revenue +7% y/y to $850MM AGR '09- '14 C 2,500 ▪ Adj. operating margin of 60%(1) $ (Millions) 2,000 ▪ Adj. EPS +26% y/y to $3.06(1) 1,500 $850MM +7% y/y ▪ Operating cash flow of $465MM 1,000 500 1Q15 Top-line
Slide 5: 1Q15: Record Financial Performance
1Q15: Record Financial Performance INCOME STATEMENT (in millions except per share amounts) 1Q15 1Q14 % Chg Financial Highlights Net revenues $850 $797 7% ▪ 1Q15 net revenues of $850MM, +7% y/y Operating Expenses $388 $406 (4)% ◦ Data Services rev +19% y/y to $187MM (1) Adj. Operating Expenses $336 $
Slide 6: 1Q15: Revenue Up, Expenses Down
1Q15: Revenue Up, Expenses Down Net Revenue Mix Adjusted Expenses(3) U.S. Cash Listings Cash Comp. Non-Cash Equities & Benefits Comp. 12% 6% 7% Prof. Services & Data Services 38% Acquisition Exp. 22% 10% 15% Tech & 54% Communications Global 6% Derivatives Other 17% 13% Deprec. & Amortization SG&A &
Slide 7: 1Q15: Futures & Options
1Q15: Futures & Options Futures & Options Revenue 1Q15 futures and options rev of $369MM $369MM +3% y/y ▪ Brent rev +51% y/y to $74MM 350 300 ▪ Natural Gas rev +4% y/y to $58MM 250 ▪ Ag & Metals rev -2% y/y to $53MM ($ millions) 200 ▪ Interest Rate rev -30% y/y to $56MM 150 100 Rate Per Contract 50
Slide 8: 1Q15: OTC Swap Clearing
1Q15: OTC Swap Clearing CDS Clearing Revenue 1Q15 CDS revenues of $43MM, flat y/y 100 ▪ CDS clearing rev of $29MM 80 Through March, $64T in CDS cleared $ (Millions) 60 $29MM, 40 +11% y/y ▪ ICE Clear Credit leader in buy-side clearing with $13T cleared to date 20 ▪ Client clearing accounted for 37% o
Slide 9: 1Q15: Cash Flow and Capital Structure
1Q15: Cash Flow and Capital Structure Operating Cash Flow 1Q15 Solid Cash Position 1,500 R 26% CAG ▪ $465MM in operating cash flow; includes 1,200 -'14 '09 $272MM from annual listing fee collections $ (Millions) 900 and $104MM for 2014 annual performance bonus payments 600 $465MM ▪ $776MM in unrestr
Slide 10: Diverse Revenue and Earnings Growth Drivers
Diverse Revenue and Earnings Growth Drivers Long-term Strategic Initiatives Near-term Profit Drivers ▪ Delivering innovative solutions amid evolving ▪ Ongoing secular growth in global energy market global regulatory environment trading and hedging of oil and natural gas ▪ Developing new products acr
Slide 11: Leading the World's Energy Markets
Leading the World's Energy Markets ▪ Global oil benchmark ICE Brent ADV +43% y/y; ICE WTI ADV +57% y/y, Gasoil ADV +17% y/y in 1Q15 ▪ Brent record OI +15% YTD March '15; 50% market share of global oil futures market ▪ Total Natural Gas revenues increased 4% y/y, despite ADV -10% y/y in 1Q15 ▪ Secula
Slide 12: Expanding EU Interest Rate Markets
Expanding EU Interest Rate Markets ▪ Interest rate (IR) ADV -27% 1Q15 y/y; Euribor ADV -52% y/y, Sterling ADV -9% y/y, Gilt ADV +11 y/y ▪ 1Q15 IR OI +11%, Euribor OI +17%, Sterling OI +7%, Gilt +7% YTD March '15 ▪ Developing new products: 2, 3, 5, 7, 10 year ERIS EU interest rate futures planned for
Slide 13: Growth and Record Revenues in Data Services
Growth and Record Revenues in Data Services ▪ Expanded Data Services cover a broad range of ICE, NYSE and SuperDerivatives data across futures, OTC and equities ▪ ICE Benchmark Administration addressing demand for transparent, regulated benchmarks ◦ Growth through LIBOR, ICE Swap Rate and Gold Price
Slide 14: NYSE Global Leadership in Trading & Listing
NYSE Global Leadership in Trading & Listing NYSE Volume & Market Share NYSE U.S. Cash Equities 25 ▪ 1Q ADV +10% y/y; April ADV +3% y/y Volume (shares in millions) 23 1,500 ▪ 1Q market share +2.5 points y/y Market Share (%) ▪ Steady revenue capture 21 1,000 ▪ Advocating for market structure improveme
Slide 15: ICE: Unparalleled Track Record of Growth
ICE: Unparalleled Track Record of Growth ▪ Record adjusted EPS(1) +26% y/y on 7% y/y revenue growth in 1Q15 ▪ Executing on strategic initiatives continues to drive growth ▪ Returned nearly $1.3 billion to shareholders since Dec 2013; $269 million in 1Q15 ▪ On track to achieve solid revenue growth an
Slide 16: Appendix
tercontinental Exchange APPENDIX 16
Slide 17: ICE Summary Balance Sheet
ICE Summary Balance Sheet In millions BALANCE SHEET 03/31/2015 12/31/2014 CHANGE Assets ▪ $776MM unrestricted cash and Unrestricted Cash & ST Inv $1,825 $1,852 $(27) short-term investments, Other Current Assets 46,661 48,393 (1,732) excluding $1.0B set aside for the Current Assets 48,486 50,245 (1,7
Slide 18: Adjusted Net Income from Continuing Ops and EPS from Continuing Ops
Adjusted Net Income from Continuing Ops and EPS from Continuing Ops In millions (except per share amounts) 12 Month 12 Month 3 Months 3 Months Ended Ended Ended 3/31/15 Ended 3/31/14 12/31/14 12/31/13 Income from continuing operations $323 $261 $1,005 $320 Add: NYSE integration costs and banker fees
Slide 19: Adjusted Operating Income, Operating Margin & Operating Expense Reconciliation
Adjusted Operating Income, Operating Margin & Operating Expense Reconciliation In millions 3 Months 3 Months Ended 3/31/15 Ended 3/31/14 Total revenues, less transaction-based expenses $850 $797 Total operating expenses 388 406 Less: NYSE integration costs and banker fees (19) (23) Less: Amortizatio
Slide 20: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation In millions Trailing 12 Months Ended 3/31/15 Adjusted net income from Continuing Ops $1,169 Add: Income tax expense 419 Add: Income tax expense adjustment on Non-GAAP Items 89 Less: Other expense, net (29) Add: Interest expense 92 Add: Depreciation and amortization 211
Slide 21: Adjusted Effective Tax Rate Reconciliation
Adjusted Effective Tax Rate Reconciliation In millions 3 Months 3 Months Ended 3/31/15 Ended 3/31/14 Income from continuing operations before income taxes $441 $362 Less: Income tax expense (118) (101) Net Income from continuing operations $323 $261 Effective tax rate 27% 28% Income from continuing