Slide 1: IntercontinentalExchange Second Quarter 2013 Earnings Presentation
IntercontinentalExchange Second Quarter 2013 Earnings Presentation August 6, 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 – Second Quarter 2013
Earnings Conference Call – Second 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 S
Slide 4: Commitment to Execution and Growth
Commitment to Execution and Growth – ICE Revenues $1,363 Record Financial Performance in 1H13(1) $1,400 $1,327 $1,150 Revenue of $724MM, +1% y/y $1,050 $995 +1% y/y Adj. operating expenses of $266MM, -4% y/y and adj. $813 operating margin of 63% $724 $700 Adj. diluted EPS of $4.23, +7% y/y 1H13 Oper
Slide 5: ICE Financial Performance – Second Quarter 2013
ICE Financial Performance – Second Quarter 2013 In millions, except per share amounts Change INCOME STATEMENT 2Q13 2Q12 y/y 2Q13 Financial Performance(1) Total Revenues $372 $351 6% Record quarterly revenue of $372MM, +6% y/y Total Operating Expenses $147 $136 8% o Brent and Gasoil revs +6% y/y Adj
Slide 6: Revenue & Expense Detail – Second Quarter 2013
Revenue & Expense Detail – Second Quarter 2013 2Q13 Consolidated Revenues 2Q13 Consolidated Expenses SG&A Market Data & Rent & Other Deprec. & Tech. & Amortization 14% Communications 13% 23% 8% Energy Agriculture $372MM 14% Prof. Services $135MM(1) +6% y/y & Acquisition 11% -1% y/y 58% Costs 14% 10%
Slide 7: ICE Futures – Second Quarter 2013
ICE Futures – Second Quarter 2013 Annual Futures & Options ADV 2Q13 futures revenues $268MM, +3% y/y -1% y/y 3,600 2Q13 ADV of 3.5MM, +3% y/y 3,000 o Energy ADV +3% y/y, Ag +3% y/y, Fin -5% y/y 2,400 Record ADV in Brent, RBOB, Heating Oil, Sugar, Coffee and Cocoa futures and options 1,800 2Q13 Rate
Slide 8: ICE Credit Derivatives – Second Quarter 2013
ICE Credit Derivatives – Second Quarter 2013 CDS Open Interest and Gross Notional Cleared 2Q13 CDS revenues of $40MM OI (Billions) Notional (Billions) o $18MM from Creditex, -13% y/y, 59% electronic $1,800 $50,000 o $22MM from CDS clearing, +43% y/y $1,600 $45,000 $1,400 $40,000 Through Aug 1, $43T
Slide 9: Consistent Cash Generation & Strong Balance Sheet
Consistent Cash Generation & Strong Balance Sheet ICE Operating Cash Flow Solid Cash Position $382MM in operating cash flow in 1H13 $800 $733 $713 $1.5B in unrestricted cash and st investments at 6/30/13 $600 $534 $487 +4% y/y $803MM in total debt $375 $382 $2.1B undrawn under existing 5 yr credit f
Slide 10: Proven Track Record of Value Creation
Proven Track Record of Value Creation • Focus on customers, growth and results 2012: Announced • Efficient integration of acquisitions while growing core business Acquisition of 2011: Became NYSE Euronext • History of realizing synergies on or ahead of schedule largest shareholder in Cetip • Discipl
Slide 11: Leading Global Energy Markets
Leading Global Energy Markets Brent Futures & Options ADV and OI Benchmark Energy Contracts ADV (000) OI (000) 700 3,000 Record quarterly Brent crude ADV and OI; 600 2,500 record Brent revenues of $63MM 500 2,000 Record open interest in Brent and WTI crude 400 futures, and rising combined share of O
Slide 12: Diverse Global Opportunities
Diverse Global Opportunities ICE Heating Oil and RBOB ADV Extending Global Markets 40 12.0% 35 10.0% Record ADV in gasoil options, heating oil and 30 RBOB in 2Q13 8.0% ADV (000s) 25 Record ag volumes in 2Q13, +3% yty 20 6.0% ICE Endex extends natural gas markets to 15 Continental EU, integration wit
Slide 13: ICE NYX Transaction Timeline
ICE NYX Transaction Timeline Competition Review 2/15/13 5/17/13 Submission of 6/24/13 U.S. Form CO EC completion competition clearance 5/1/13 approval under the HSR EU prospectus obtained Act expired approval DEC 12 FEB APR MAY JUN AUG FALL 2013 4/30/13 8/15/13* 12/20/12 6/3/13 S-4 deemed Anticipate
Slide 14: 2013 Progress Report – Delivering on Growth
2013 Progress Report – Delivering on Growth Five Themes in 2013 1H13 Progress Report 2H13 Focus • Continue to grow volume and OI in futures • Record EU energy Fut. rev, +7% v 1H12 Commodity market expansion across and options markets • Oil futures market share >50% energy and ag markets through new
Slide 15: Appendix
APPENDIX
Slide 16: Non-GAAP Net Income Attributable to ICE & EPS Reconciliation
Non-GAAP Net Income Attributable to ICE & EPS Reconciliation In thousands 6 Months 6 Months 3 Months 3 Months Ended Ended Ended Ended 6/30/13 6/30/12 6/30/13 6/30/12 Net income attributable to ICE $288,765 $291,022 $153,323 $143,157 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 6 Months 6 Months 3 Months 3 Months Ended Ended Ended Ended 6/30/13 6/30/12 6/30/13 6/30/12 Total revenues $723,506 $716,407 $371,609 $351,213 Total operating expenses 298,736 275,809 146,917 135,797 Less: NY
Slide 18: ICE Summary Balance Sheet
ICE Summary Balance Sheet In millions BALANCE SHEET 6/30/13 12/31/12 CHANGE Low leverage with debt to trailing Assets EBITDA of 0.9x as of 6/30/13 Unrestricted Cash & ST Inv. $1,494 $1,612 -$119 Other Current Assets 35,692 32,138 3,554 Unrestricted cash and st Current Assets 37,185 33,750 3,435 inve
Slide 19: Historical Aggregate Data
Historical Aggregate Data 2013 Trading Days* 21 19 20 22 22 20 22 21 21 23 19 22 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 Ags 263 348 231 312 223 376 206 Financials 123 144 199 152