Cme Group Inc. · NASDAQ:CME
Cme — Merger or Acquisition (March 2018)
13 slides from Cme's merger presentation, Mar 29, 2018
Slide 1: CME Group Acquisition of NEX Group
CME Group Acquisition of NEX Group Strengthens CME Group's Global Offerings in Foreign Exchange, U.S. Treasuries, and Post-Trade Services March 29, 2018 © 2018 CME Group. All rights reserved.
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains certain forward-looking statements with respect to CME Group, NEX and combined company. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements often u
Slide 3: Strategically Attractive and Financially Compelling
Strategically Attractive and Financially Compelling Unique opportunity for CME Group to expand into attractive complementary cash and OTC products with favorable macro trends Combines CME Group, the most diverse derivatives marketplace, with NEX’s electronic FX and fixed income cash execution pl
Slide 4: Transaction Summary
Transaction Summary Purchase price of £10.00 per share, 50% in cash and 50% in stock - NEX shareholders will receive £5.00 in cash and 0.0444 shares of CME Group for each share of Purchase Price (1) NEX Total equity value of £3.9 billion / $5.4 billion Expect to fund cash consideration with a
Slide 5: NEX at a Glance
NEX at a Glance NEX provides leading, global electronic execution platforms and post-trade solutions 9% NEX NEX Markets 15% 43% Optimisation 57% Leading electronic Offers a portfolio of cash trading services to reduce platforms and costs and optimize solutions in FX and risk and capital fixed in
Slide 6: Highly Complementary Businesses
Highly Complementary Businesses Value Creation Leadership in fragmented $5tn Listed FX futures ADV FX market with liquidity ~$100bn ADV FX – FX futures and – Deeply EBS options ADV of Technology, embedded into $90bn+ Operational and entire FX ecosystem Trading Efficiencies Leading listed Cas
Slide 7: Combination Delivers Value to Clients
Combination Delivers Value to Clients will enable Expanded Offerings: Enable the delivery of new products, post-trade services and data offerings to further support cost-effective trading and risk management Enhanced Technology: Improve functionality and performance by combining NEX businesses with
Slide 8: NEX Complements CME Group's Unique Assets
NEX Complements CME Group’s Unique Assets Post Trade, Market & Info Services, Other LTM 9/30/17 Revenue Mix 5% and Other NEX Data Balanced portfolio of 2% 22% diverse, benchmark NEX Post Trade products 6% CME Market & Info Commodities Services 30% 9% NEX 5% FX CME 9% 4% NEX Equities 5% 11% CME 23% I
Slide 9: NEX Combination Furthers CME Group's Global Footprint
NEX Combination Furthers CME Group’s Global Footprint Transaction is expected to increase CME Group’s international revenue by over 35% and extend reach into new customer segments (e.g., regional banks in EMEA) CME Group Non-U.S. Electronic ADV by Product Line NEX Revenue by Region (in millions) Bas
Slide 10: Substantial Potential Cost Savings
Substantial Potential Cost Savings Carefully planned integration with expected cost savings of $200 million annually by the end of 2021 3-Year Net Run-Rate Cost Synergies Phasing of Run-Rate Synergies ($ in millions) Selling, Operational $200 $200 General and Functions Administrative 20% 45% $150 $1
Slide 11: Pro Forma Capital Structure and Leverage
Pro Forma Capital Structure and Leverage Financing Summary CME Group Historical Capital Returns $2,000 Regular Quarterly Dividend Note: Impacts Fully committed financing Annual Variable Dividend (paid either end of year it reflects that are more one-time in nature $1,600 or first quarter of follow
Slide 12: Timeline & Approval Process
Timeline & Approval Process Timetable Approvals Announcement • Announcement of transaction: March 29th • NEX shareholder vote • Scheme documentation to be posted within 28 Posting of days of announcement Document / Convene NEX Shareholder • Notice of NEX shareholder meeting • Anti-trust and other re
Slide 13: Transaction Meets All Important Criteria
Transaction Meets All Important Criteria • Adds complementary cash and OTC product capabilities with Strategic Fit deep liquidity and strong network businesses • ~$200mm in run-rate cost synergies Value Creation • Immediately accretive to Adj. Cash EPS and has compelling synergies Customer Value • S