Intercontinental Exchange Inc. · NYSE:ICE

Intercontinental Exchange — Q2 2012 Earnings Presentation

19 slides from Intercontinental Exchange's earnings presentation, Aug 1, 2012

  1. Slide 1: Second Quarter 2012 Earnings Presentation

    IntercontinentalExchange Second Quarter 2012 Earnings Presentation August 1, 2012

  2. Slide 2: Forward-Looking Statement

    Forward-Looking Statement 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 our business that are not historical facts are forward-looking sta

  3. Slide 3: Earnings Conference Call - 2Q 2012

    Earnings Conference Call - 2Q 2012 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 L. Loeffler, CFA Melanie S. Skijus, CFA Vice President, Investor Relations & Director, Inv

  4. Slide 4: Delivering Consistent Growth

    Delivering Consistent Growth ICE Revenues 1H12 Financial Performance $1,400 $1,327 $1,150  Record revenue +9% y/y $1,050 $995  Net income attributable to ICE +16% y/y +9% y/y $813 $716  62% operating margins vs. 60% in 1H11 on 4% y/y $700 $574 expense growth  Diluted EPS +18% y/y $350  Operatin

  5. Slide 5: ICE Financial Highlights – 2Q12

    ICE Financial Highlights – 2Q12 In millions, except per share amounts Change  Demand for clearing and risk management INCOME STATEMENT 2Q12 2Q11 y/y continues to increase Total Revenues $351 $325 8% Total Expenses $136 $134 1%  12th consecutive quarter of double-digit Operating Income $215 $191 13

  6. Slide 6: Revenue & Expense Detail – 2Q12

    Revenue & Expense Detail – 2Q12 2Q12 Consolidated Revenues 2Q12 Consolidated Expenses SG&A OTC Credit & Rent Market Data & Other Tech. & Deprec. & 10% 11% 13% Communications Amortization 24% 9% Soft/Ag Futures Prof. Services 29% 13% & Acq. Costs 9% OTC Energy 3% Index/FX Futures Non-Cash Comp. 10% C

  7. Slide 7: ICE Futures Segment – 2Q12

    ICE Futures Segment – 2Q12 Annual Futures & Options Volume1 400 381  2Q12 record futures revenues $169MM, +14% y/y 329  2Q12 record average daily volume (ADV) of 1.6MM, 300 262 +4% y/y +11% y/y 237 196 199  Strength in Brent, Gasoil, Emissions and Ag contracts 200  Rate Per Contract (RPC) 100 En

  8. Slide 8: ICE OTC Segment – 2Q12

    ICE OTC Segment – 2Q12 Annual OTC Average Daily Commissions (ADC)  2Q12 OTC revenues of $137MM, -2% y/y +7% y/y o Energy market growth offset by decline in credit revenues 2500 $2,369 $2,241  2Q12 OTC energy revenues of $101MM, +3% y/y $2,031 2000 $1,857 o OTC Energy ADC of $1.6MM, +3% y/y o Preli

  9. Slide 9: Robust Cash Generation & Strong Balance Sheet

    Robust Cash Generation & Strong Balance Sheet ICE Operating Cash Flow Solid Cash Position $800 $713  $366MM in operating cash flow in 1H12, +14% y/y  $1.1B in unrestricted cash $600 $534 $487 +14% y/y  $2B undrawn credit facility $400 $375 $366  Debt-to-EBITDA ratio of 0.9x $288  $569MM in ICE

  10. Slide 10: Serving Global Derivatives Markets

    Serving Global Derivatives Markets Transaction & Clearing Revenues International Diversification (thousands) $1,200 $1,000 56% 51% $800 64% $600 $400 44% 49% $200 36% $- 2004 2005 2006 2007 2008 2009 2010 2011 2009 2010 2011 Futures OTC International US Services & Risk Management Technology Global M

  11. Slide 11: Global Oil Complex

    Global Oil Complex Brent & Gasoil Contracts Benchmark Energy Markets ADV (000) OI (000) 1,000 3,500  Brent & Gasoil volume up over 50% since 2010 3,000  Continued growth in crude and refined oil, OI of 800 2,500 over 3MM contracts, +66% y/y 600  Rising international commercial participation 2,000

  12. Slide 12: Delivering solutions for financial reform

    Delivering solutions for financial reform  Rule-making progress: Where are we now?  U.S. moving from rulemaking to implementation  Swap Definition triggers effective dates for nearly 20 rules including: o Registration of swap dealers and major swap participants o Implementation of aggregate posit

  13. Slide 13: Expanding Customer Base and Avenues of Growth

    Expanding Customer Base and Avenues of Growth ICE Customer Growth 300 Index Date = Dec 2005 Extending Global Markets  New products, markets and customers 250  Brazilian bond platform with Cetip  BRIX volume and customer growth continuing 200  New U.S. and Canadian grain contracts  Emissions auc

  14. Slide 14: 2012 Progress Report – Delivering on Growth

    2012 Progress Report – Delivering on Growth Five Themes in 2012 1H12 Progress Report 2H12 Focus • Record revs in OTC Energy in 1Q • Continue to grow volumes Continued growth in energy and ag • Record revs in Futures in 2Q • Liquidity in Brent NX and LS Gasoil complexes driven by secular trends and •

  15. Slide 15: Appendix

    APPENDIX

  16. Slide 16: ICE Summary Balance Sheet

    ICE Summary Balance Sheet In millions BALANCE SHEET 6/30/12 12/31/11 CHANGE  Low leverage with debt to trailing EBITDA of 0.9x as of 6/30/12 Assets Unrestricted Cash $1,082 $823 $259  Unrestricted cash of $1B; $863MM Other Current Assets 34,976 31,782 3,194 debt outstanding as of 6/30/12 Current A

  17. Slide 17: ICE Daily Average Volume History

    ICE Daily Average Volume History 2012 January February March April May June July August September October November December ICE Futures Europe 1,113,282 1,199,734 1,055,330 1,065,736 1,137,794 1,224,942 ICE Futures U.S. 355,406 437,690 435,110 447,306 389,267 550,629 ICE Futures Canada 18,211 30,151

  18. Slide 18: ICE Futures Rate Per Contract History

    ICE Futures Rate Per Contract History Rolling Three-Month Average Rate per Contract 2012 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec ICE Futures Europe Futures & Options $ 1.62 $ 1.60 $ 1.56 $ 1.55 $ 1.55 $ 1.56 ICE Futures U.S. Agricultural Futures & Options $ 2.55 $ 2.71 $ 2.68 $ 2.70 $ 2.58 $

  19. Slide 19: Adjusted EBITDA Reconciliation

    Adjusted EBITDA Reconciliation In thousands 6 Months 6 Months 3 Months 3 Months Ended Ended Ended Ended 6/30/12 6/30/11 6/30/12 6/30/11 Net income attributable to ICE $291,022 $250,269 $143,157 $121,365 Plus income tax expense 126,562 125,454 61,266 59,316 Less interest and investment income (682) (

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