Slide 1: CME Group 2Q 2018 Earnings Q&A Conference Call
CME Group 2Q 2018 Earnings Q&A Conference Call APPENDIX SLIDES As a replacement to formal conference call prepared remarks, please see the CME Group 2Q 2018 Quarterly Earnings Commentary document posted with all other CME Group 2Q 2018 earnings documents at the following link: July 26, 2018 http://i
Slide 2: Forward Looking Statements
Forward Looking Statements Statements in this presentation that are not historical facts are forward-looking statements. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results ma
Slide 3: Long-Term Growth in a Variety of Environments
Long-Term Growth in a Variety of Environments (round turns, in millions) Pro Forma 21 Average Daily Volume 20.2M 18 15 12 9 CAGR 1972 – 2017 13% 6 3 0 Note: Volumes are all pro forma as if CME owned NYMEX and CBOT over the illustrated period and 2018TD ADV is through 6/30/18 3 © 2018 CME Group. All
Slide 4: Strong ADV Growth and Healthy Open Interest
Double Digit Strong ADV Growth and Healthy Open Interest Growth YOY Across 5 of 6 Product Lines ADV Year Over Year Growth Rates 2018TD vs. 2017TD Annual ADV Millions Total Options Product Line 21 20.2M ADV ADV Interest Rates 21% 13% 18 Equities 31% 26% 15 Energy 5% -8% 12 12% CAGR Ag 21% 23% Commodi
Slide 5: Open Interest Reaching All-Time Highs
Open Interest Reaching All-Time Highs 140 Open Interest at Month End (in millions) Reached all-time high of 138M contracts on March 15, 2018 130 Prior peak of 129.1M contracts in mid-June 2017 120 2015 110 2016 2017 2018 100 90 80 5 Data through July 23, 2018 © 2018 CME Group. All rights reserved.
Slide 6: Unique Assets Provide Competitive Advantages
Unique Assets Provide Competitive Advantages Q2 2018 Revenue Mix Balanced portfolio of diverse, benchmark products Energy Interest Rates 18% 27% World-class clearing, Agricultural risk management Commodities expertise Equities 13% 15% Metals Foreign Market 6% Exchange Data & Info 5% Svcs Other 11% 5
Slide 7: Volatility Through 2Q 2018
Volatility Through 2Q 2018 35.00% S&P 500 Volatility 120.00% Eurodollars 30.00% 100.00% 25.00% 80.00% 20.00% 60.00% 15.00% 40.00% 10.00% 20.00% 5.00% 0.00% 0.00% Eurodollars (3rd Month) S&P 500 VIX Index 16% Foreign Exchange 12.00% Treasuries 14% 10.00% 12% 8.00% 10% 8% 6.00% 6% 4.00% 4% 2.00% 2% 0%
Slide 8: Volatility Through 2Q 2018
Volatility Through 2Q 2018 70.00% Energy 90.00% Metals 60.00% 80.00% 70.00% 50.00% 60.00% 40.00% 50.00% 30.00% 40.00% 30.00% 20.00% 20.00% 10.00% 10.00% 0.00% 0.00% WTI Crude Oil Natural Gas Gold Silver 50.00% Ag Commodities 45.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% Corn So
Slide 9: Investments in Globalization Are Paying Off
Investments in Globalization Are Paying Off Electronic ADV based on origin of trade, in 000s Europe 3,499 Asia 897 ADV by trading hours, U.S. Asian European in 000s 18,000 7am – 4pm CT 700 4pm – 11pm CT 2,100 11pm – 7am CT 600 500 • During 2Q18, 34% 12,000 1,400 400 growth during 300 European tradin
Slide 10: Investments in Globalization Are Paying Off
Investments in Globalization Are Paying Off Non-U.S. Electronic ADV Proportion of Total Electronic ADV 50% 43% 40% 40% 30% 25% 26% 20% 19% 19% 10% 0% Interest Rates Equities FX Energy Agricultural Metals 2Q17 2Q18 10 © 2018 CME Group. All rights reserved.
Slide 11: Options Business – Continued Momentum
Options Business – Continued Momentum Percentage ADV Electronic Annual Options 64% 4,500,000 70% ADV by Venue YTD Reached all-time high daily volume of 60% 9.3M contracts on February 6, 2018 3,600,000 50% 2,700,000 40% 30% 1,800,000 20% 900,000 10% 0 0% Electronic Volume Open Outcry Volume Privately
Slide 12: Committed to Returning Cash to Shareholders
Committed to Returning Cash to Shareholders $ (millions) $2,000 Regular Quarterly Dividend • Regular quarterly dividends for $1,800 1Q18 and 2Q18 were declared Annual Variable Dividend at $0.70 per share, which was (paid either end of year it reflects or first $1,600 quarter of following year) an in
Slide 13: CME Group 2Q 2018 Adjusted Financial Results
CME Group 2Q 2018 Adjusted Financial Results1 • Revenue of $1,060M, up 15% • Operating Expense of $312M, up 6% • Operating Expense, excluding Licensing Fees, of $273M, up 4% • Operating Income of $747M, up 19% • Operating Margin of 70.5 percent • Net Income of $591M, up 41% • Diluted EPS of $1.74, u
Slide 14: Notes / Guidance
Notes / Guidance • Maintaining original 2018 guidance • Adjusted operating expense excluding license fees expected to be between $1.100 billion and $1.105 billion • Capital expenditures, net of leasehold improvement allowances, expected to be between $90 million and $100 million • Adjusted effective
Slide 15: 2Q18 Reconciliation of GAAP to non-GAAP Measures
2Q18 Reconciliation of GAAP to non-GAAP Measures 15 © 2018 CME Group. All rights reserved.
Slide 16: GAAP Income Statement Trend Excluding Deferred Compensation, FX, Amortization and Other
GAAP Income Statement Trend Excluding Deferred Compensation, FX, Amortization of Intangibles and Other Historically Noted Adjustments1 CME Group Inc. and Subsidiaries GAAP Income Statement Trend Excl Def Comp, FX, Amortization of intangibles and other historically noted adjustments1 (in millions, ex
Slide 17: Interest Rate Futures – Large Open Interest Holders
Interest Rate Futures – Large Open Interest Holders CME Group Interest Rate Futures Aggregate Number of Large Open Interest Holders* Source: CFTC 2,500 Change over Selected Periods 2,084 2,000 Last 4 Weeks Last 13 Weeks Last 52 Weeks +0.7% +1.3% +13.8% 1,500 1,000 YTD up 10% Peak 2,138 on May 15, 20
Slide 18: FX Futures – Large Open Interest Holders
FX Futures – Large Open Interest Holders CME Group Foreign Exchange Futures Aggregate Number of Large Open Interest Holders* Source: CFTC 1,400 1,200 Change over Selected Periods Last 4 Weeks Last 13 Weeks Last 52 Weeks –1.7% +0.9% +4.3% 1,084 1,000 800 600 YTD up 6% 400 Peak 1,144 on January 30, 20
Slide 19: Equity Futures – Large Open Interest Holders
Equity Futures – Large Open Interest Holders CME Group Equity Index Futures Aggregate Number of Large Open Interest Holders* Source: CFTC 2,000 YTD up 5% 1,800 Peak 1,758 reached January 30, 2018 1,655 1,600 E-mini Russell 1,400 2000 now included 1,200 1,000 800 600 400 200 0 2006 2007 2008 2009 201
Slide 20: Energy Futures – Large Open Interest Holders
Energy Futures – Large Open Interest Holders CME Group Energy Futures Aggregate Number of Large Open Interest Holders* Source: CFTC 1,325 1,250 Peak 1,325 on May 15, 2018 1,196 1,175 1,100 1,025 950 875 800 Change over Selected Periods Last 4 Weeks Last 13 Weeks Last 52 Weeks -5.5% -3.5% -1.2% 725 6
Slide 21: Metals Futures – Large Open Interest Holders
Metals Futures – Large Open Interest Holders CME Group Metals Futures Aggregate Number of Large Open Interest Holders* Source: CFTC 1,400 Peak 1,374 on August 29, 2017 1,300 1,293 1,200 1,100 1,000 900 800 700 Change over Selected Periods Last 4 Weeks Last 13 Weeks Last 52 Weeks -1.4% +1.3% +0.4% 60
Slide 22: Agricultural Futures – Large Open Interest Holders
Agricultural Futures – Large Open Interest Holders CME Group Agricultural Futures Aggregate Number of Large Open Interest Holders* Source: CFTC 4,000 3,750 At all-time high of 3,720 on May 29, 2018 3,508 3,500 3,250 3,000 2,750 Change over Selected Periods Last 4 Weeks Last 13 Weeks Last 52 Weeks 2,
Slide 23: CME Group – Compelling Investment
CME Group – Compelling Investment Only Pure Play Derivatives Positioned for Growth Several Potential Exchange Tailwinds • Unmatched product diversity • Focused on customer • Increasing global relevance of and 24 hour liquidity challenges / working U.S. Energy products (WTI collaboratively Crude Oil