Slide 1: IntercontinentalExchange Third Quarter 2013 Earnings Presentation
IntercontinentalExchange Third Quarter 2013 Earnings Presentation November 5, 2013
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 IntercontinentalExchang
Slide 3: Earnings Conference Call – Third Quarter 2013
Earnings Conference Call – Third Quarter 2013 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 Loeffler, CFA Isabel Janci Melanie Skijus, CFA Vice President, Corp. Affairs Sr
Slide 4: Commitment to Execution and Growth
Commitment to Execution and Growth ICE Revenues Financial Performance – 9 mos YTD $1,327 $1,363 $1,400 +2% y/y Revenue of $1.1B, +2% y/y $1,150 $1,061 Adj. operating expenses(1) of $396MM, -2% y/y and adj. $1,050 $995 $813 operating margin(1) of 63% $700 Adj. net income attributable to ICE(1) $454MM
Slide 5: ICE – Third Quarter 2013
ICE – Third Quarter 2013 In millions, except per share amounts Change INCOME STATEMENT 3Q13 3Q12 y/y 3Q13 Financial Performance(1) Total Revenues $338 $323 5% Total Operating Expenses $136 $129 5% Solid revenue growth driven by: Adj Operating Expenses 1 $130 $129 1% o Brent revenue +4% y/y, Total Oi
Slide 6: Revenue & Expense Detail – Third Quarter 2013
Revenue & Expense Detail – Third Quarter 2013 3Q13 Consolidated Revenues 3Q13 Consolidated Expenses(1) SG&A Agriculture Market Data & Rent & Other Deprec. & Tech. & Amortization 12% 17% Communications 12% 26% 10% Financials 14% $338MM Prof. Services $130MM(1) & Acquisition 6% +5% y/y +1% y/y Exp. 9%
Slide 7: ICE Futures – Third Quarter 2013
ICE Futures – Third Quarter 2013 Annual Futures & Options ADV -1% y/y Highlights 3,500 3Q13 futures revenues of $231M, -2% y/y 3,000 3Q13 ADV of 3.1MM, -1% y/y 2,500 o Energy ADV -2% y/y 2,000 o Ag ADV +5% y/y 1,500 o Fin ADV -1% y/y 1,000 ADV strength in Brent, Other Oil, Sugar and FX 500 - 3Q13 Ra
Slide 8: Energy Update – Oil & Natural Gas Markets
Energy Update – Oil & Natural Gas Markets Global Oil Complex ADV (000) +10% y/y Benchmark Energy Contracts 1,200 Other Oil +25% y/y 1,000 Leading global crude & refined oil benchmarks; key 800 Gasoil benchmarks across nat gas, power and emissions +3% y/y Record volumes across all oil categories, Tot
Slide 9: Credit Derivatives – Third Quarter 2013
Credit Derivatives – Third Quarter 2013 CDS Open Interest and Gross Notional Cleared OI (Billions) Notional (Billions) 3Q13 CDS revenues of $38MM, +15 y/y $1,800 $50,000 o $16MM from Creditex; -8% y/y, 58% electronic $1,600 $45,000 $40,000 o $22MM from CDS clearing, +40% y/y $1,400 $1,200 $35,000 $3
Slide 10: Consistent Cash Generation & Strong Balance Sheet
Consistent Cash Generation & Strong Balance Sheet ICE Operating Cash Flow $800 $733 Solid Cash Position $713 -2% y/y $562MM in operating cash flow Sep YTD $600 $562 $180MM in operating cash flow 3Q13 $534 $487 $400 $375 Delivering Shareholder Value Leading ROIC of 18%, avg cost of capital 9% $200 Pu
Slide 11: Proven Track Record of Value Creation
Proven Track Record of Value Creation • Strong management team with history of identifying opportunities early • Efficient integration of acquisitions while growing core business 2012: • History of realizing synergies on or ahead of schedule Announced Acquisition of • Focus on customers, growth and
Slide 12: ICE & NYSE Euronext: Creating a Global Markets Leader
ICE & NYSE Euronext: Creating a Global Markets Leader ESTABLISHES A PREMIER NETWORK OF GLOBAL MARKETS › Leading global, end-to-end derivatives franchise across all major asset classes › Proven clearing platform to meet demand for risk management and drive growth initiatives › Pre-eminent global equi
Slide 13: A Focus On Consistent Growth and Results
A Focus On Consistent Growth and Results Operating Income Growth Priorities 1. Integration and synergies from NYX $800 2. Drive growth in core business $600 3. Prudent expense management $400 4. Leadership in financial reform solutions $200 5. Invest for long-term growth $0 2008 2009 2010 2011 2012
Slide 14: APPENDIX
APPENDIX
Slide 15: ICE Summary Balance Sheet
ICE Summary Balance Sheet In millions BALANCE SHEET 9/30/13 12/31/12 CHANGE Assets Low leverage with debt to trailing EBITDA of 0.8x as of 9/30/13 Unrestricted Cash & ST Inv. $1,574 $1,612 -$38 Other Current Assets 43,816 32,138 11,678 Unrestricted cash and st Current Assets 45,390 33,750 $11,640 in
Slide 16: Non-GAAP Net Income Attributable to ICE & EPS Reconciliation
Non-GAAP Net Income Attributable to ICE & EPS Reconciliation In thousands 9 Months 9 Months 3 Months 3 Months Ended Ended Ended Ended 9/30/13 9/30/12 9/30/13 9/30/12 Net income attributable to ICE $430,080 $422,104 $141,315 $131,082 Add: NYSE Euronext transaction costs and banker fee relating to ICE
Slide 17: Non-GAAP Operating Income, Operating Margin & Operating Expense Reconciliation
Non-GAAP Operating Income, Operating Margin & Operating Expense Reconciliation In thousands 9 Months 9 Months 3 Months 3 Months Ended Ended Ended Ended 9/30/13 9/30/12 9/30/13 9/30/12 Total revenues $1,061,377 $1,039,594 $337,871 $323,187 Total operating expenses 434,461 404,945 135,725 129,136 Less