Intercontinental Exchange Inc. · NYSE:ICE

Intercontinental Exchange — Goldman Sachs US Financial Services Conference 2013

20 slides from Intercontinental Exchange's conference presentation, Dec 10, 2013

  1. Slide 1: Goldman Sachs US Financial Services Conference 2013

    Goldman Sachs US Financial Services Conference 2013 IntercontinentalExchange (ICE) December 10, 2013

  2. Slide 2: Safe Harbor

    Safe Harbor CAUTIONARY STATEMENT REGARDING FORWARD LOOKING STATEMENTS This presentation contains “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 forwa

  3. Slide 3: IntercontinentalExchange Group

    IntercontinentalExchange Group ICE is the leading network of regulated exchanges and clearing houses for the global financial and commodity markets. 3

  4. Slide 4: Strategic Opportunities

    Strategic Opportunities Ability to transform markets and drive risk management  Grow franchise for financial and commodities futures markets in US, EU and Asia Futures Market  Global energy leader – hosts >50% of the world‟s oil futures trading Expansion  Premier interest rates complex across US,

  5. Slide 5: Diversified Across Growth Markets

    Diversified Across Growth Markets Pro Forma Net Revenue Diversification Current Business Mix Post-Euronext & Transition of NYXT Businesses CDS CDS Cash 5% 4% Trading Cash Trading 6% 10% Exchange- Exchange- traded Listings traded Derivatives 13% Derivatives 44% 51% Listings 12% Commodities 33% 3Q13 L

  6. Slide 6: ICE Futures

    ICE Futures Annual Futures & Options ADV Highlights 4,000 -%y/y 3,500  3Q13 futures revenues of $231M, -2% y/y 3,000  3Q13 ADV of 3.1MM, -1% y/y o Energy ADV -2% y/y 2,500 o Ag ADV +5% y/y 2,000 o Fin ADV -1% y/y 1,500 1,000  ADV strength in Brent, Other Oil, Sugar and FX 500  3Q13 Rate Per Cont

  7. Slide 7: Energy Update – Oil & Natural Gas Markets

    Energy Update – Oil & Natural Gas Markets Global Oil Complex ADV (000) +9% y/y Benchmark Energy Contracts 1,200 Other Oil  Leading global crude & refined oil benchmarks; key +24% y/y 1,000 benchmarks across nat gas, power and emissions Gasoil 800 +1% y/y  Strong volumes across all oil categories,

  8. Slide 8: ICE Agricultural and Financial Markets

    ICE Agricultural and Financial Markets Agriculture Futures Volumes Soft Commodity & Grain Futures ADV (000) 300 +6% y/y  Nov YTD ADV +6% y/y, driven by Sugar 250 +8% y/y, Coffee +3% y/y and Cocoa +12% 200 y/y  Ag open interest 2.4MM contracts Nov „13 150  Global customer growth 100  Solid trends

  9. Slide 9: Credit Derivatives

    Credit Derivatives CDS Open Interest and Gross Notional Cleared  3Q13 CDS revenues of $38MM, +15 y/y OI (Billions) Notional (Billions) o $16MM from Creditex; -8% y/y, 58% electronic $1,800 $50,000 o $22MM from CDS clearing, +40% y/y $1,600 $45,000 $1,400 $40,000 $35,000  Through Nov 29, $47T in CD

  10. Slide 10: Interest Rate Markets

    Interest Rate Markets  Opportunity across short-, mid- and long-term interest rate products  Plan to launch Ultra Long 30 year Gilt as first major new product in early 2014  Solid platform for entering swaps clearing upon finalization of financial reform requirements Liffe European Interest Rate

  11. Slide 11: Pre-eminent Trading & Listing Business

    Pre-eminent Trading & Listing Business YTD 2013 Global IPO Capital Raising - Top 5 by Proceeds $28.6B U.S. Cash Equities Trading  Leading market share in cash equities & U.S. equity options # of Deals  Focus on market structure improvements $7.4B $6.7B $6.5B $5.8B NYSE Listings NYSE Tokyo Nasdaq B

  12. Slide 12: Establish Independent Euronext

    Establish Independent Euronext Structure:  Euronext markets in Paris, Amsterdam, Brussels, London and Lisbon & Continental Derivatives  The Euronext perimeter also includes certain commercial technology and exchange solutions that were formerly part of NYXT  723 listed companies as of  132 liste

  13. Slide 13: Optimize NYXT Portfolio

    Optimize NYXT Portfolio Buy-side Platforms NYFIX  Leading buy-side order and messaging delivery platform, 800 buy-side firms  11,000 order routing channels  Appia is the leading suite of FIX gateway technology products, deployed in over 1,000 firms in 35 countries Metabit  Leading Japanese EMS a

  14. Slide 14: Expense Synergies

    Expense Synergies Expect $500MM; $95MM achieved through 3Q13  Synergy plans developed and in place to achieve a total of ~$500MM  Expect to achieve 70%+ of synergies on a run rate basis exiting 2014  90%+ of synergies achieved on a run rate basis exiting 2015 Annual Run-Rate Synergies Description

  15. Slide 15: Debt Structure

    Debt Structure Debt Outstanding (in $ millions) As of Merger Closing 5.375% NYX Senior Notes (2015) $1,260 (€920)  Issued $1.4B Senior Notes (A/A3) on October 8 Bank Term Loans (2014-2016) $390 Bank 5 YR/364 Day => CP(2) $1,350  Target of at or below 1.5x Debt-to-Adj. EBITDA(1) in 18-24 months 2.0

  16. Slide 16: Guidance & Reporting

    Guidance & Reporting Guidance (1) Reporting ICE Group ICE 4Q13 NYX 4Q13 Key Metrics(1)  Two reporting segments: ICE Group & Euronext 4Q13 Standalone Standalone  Provide financial information and volumes for our Deal Costs (2) $157MM $65MM $92M Global Derivatives business (including options) Expens

  17. Slide 17: Key Milestones

    Key Milestones End of 2014 In 18-24 Months 1H14 70%+ synergies Debt-to-EBITDA NYXT Optimization achieved on run < 1.5x & Liffe Integration rate exiting 2014 2014 2015 Mid 2014 End of 2014 End of 2015 11/13/13 Euronext / Liffe; NYSE Liffe 90%+ synergies Deal Separation & Integration with achieved on

  18. Slide 18: Appendix

    APPENDIX IntercontinentalExchange

  19. Slide 19: Historical Aggregate Data

    Historical Aggregate Data 2013 Trading Days* 21 19 20 22 22 20 22 22 20 23 20 21 Average Daily Volume (000s) Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Energy 3,093 3,149 3,379 3,380 2,947 2,835 2,668 2,607 2,740 2,991 3,021 Ags 263 348 231 312 223 376 206 23

  20. Slide 20: Reconciliation of Adjusted Non-GAAP EBITDA

    Reconciliation of Adjusted Non-GAAP EBITDA (in $ millions) TTM 3Q13 2Q13 1Q13 4Q12 Net income attributable to ICE $559 $141 $153 $136 $129 Add: NYSE Euronext transaction costs and banker fee relating to ICE Endex acquisition 40 5 8 17 9 Add: Duplicate rent expenses and lease termination costs 7 - 4

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