Intercontinental Exchange Inc. · NYSE:ICE
Intercontinental Exchange — Barclays Global Financial Services Conference 2011
20 slides from Intercontinental Exchange's conference presentation, Sep 14, 2011
Slide 1: Barclays Global Financial Services Conference
Click to edit Master title style IntercontinentalExchange Barclays Global Financial Services Conference September 14, 2011 IntercontinentalExchange
Slide 2: Safe Harbor
Safe Harbor 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 statements that i
Slide 3: ICE: Derivatives Market Leadership
ICE: Derivatives Market Leadership An Expanding Market Position Global derivatives markets Average Daily Volumes: Futures and OTC Growth and innovation leader among exchanges 3,000 Broad distribution and network effect 2,500 4 futures exchanges, 2 OTC markets, 5 clearing houses 2,000 Organ
Slide 4: Consistent Industry Leading Growth & Profitability
Consistent Industry Leading Growth & Profitability Revenue Growth $1,200 $1,150 Long-term double-digit growth target: $1,000 $995 › Record 1H11 revenue up 14% y/y; adjusted $800 $813 +14% y/y expenses1 up only 9% $659 $574 $600 Record 1H11 revenues driven by: $400 › Record futures rev: $306MM, +
Slide 5: Strong Balance Sheet & Cash Flow
Strong Balance Sheet & Cash Flow Operating Cash Flow Strong Cash Generating Model $600 $534 1H11 operating cash flow $321MM $487 $500 +24% y/y $757MM in unrestricted cash June 30, 2011 $375 $400 $321 o $453MM post Cetip investment $288 $300 3-year average free cash flow yield 5.5% $200 Discipl
Slide 6: ICE Futures
ICE Futures Futures Volume and Open Interest Growth Annual Futures and Options ADV1 +14% y/y 1,600 1,530 1H11 $306MM in revenues, +21% y/y 1,306 1,200 1H11 ADV of 1.5MM contracts, +14% y/y 922 1,036 771 Strong 1H11 growth in Brent, Gasoil, Cotton, FX 800 o Energy futures ADV of 1.1MM, +23% y/y
Slide 7: ICE OTC Energy
ICE OTC Energy OTC Energy ADC +13% y/y OTC Energy Growth $1,580 $1,600 $1,374 1H record OTC energy volume of 195MM contracts, $1,202 +21% y/y $1,200 $1,117 1H11 OTC energy revenue of $201MM, +13 y/y $845 $800 o Energy ADC of $1.6MM in 1H11, +13% y/y o July ADC of $1.5MM $400 $0 Leading the Evolu
Slide 8: ICE OTC Credit
ICE OTC Credit OTC Credit OTC Credit Derivatives $200 $165 $166 1H11 CDS revenue of $80MM $160 o $50MM from Creditex; 58% electronic vs. 44% in 1H10 $120 $80 o $30MM from CDS clearing; up 11% from 1H10 $80 58% of total $50MM CDS execution revenues were $40 electronic in 1H11 $0 2009 2010 1H11 Le
Slide 9: Multiple Drivers of Growth
Multiple Drivers of Growth Secular Drivers ICE 1H11 Revenue Diversification Rising demand for commodities and hedging price exposure Volatility inherent in natural resource prices OTC Credit Increased use of risk management across industries Market Data/Other 12% Growth in emerging economies
Slide 10: Exposure to Growth Markets
Exposure to Growth Markets Geographic Diversity 2010 Consolidated Revenues Geographic diversification 100% 47% of revenues from outside of U.S. UK/Canadian exchanges/clearinghouses 80% 57% 53% Globally relevant products, levered to emerging 60% economies Launch of Brazilian power market (BRI
Slide 11: Strategic Approach to New Markets
Strategic Approach to New Markets Product & Platform Initiatives: 2011 Execution and clearing enhancements New Products & Services 218 new cleared OTC energy products Ramping of 300+ new recent products OTC oil revenues up 77% in 1H Leverage strong energy footprint ICE Link and RealTime
Slide 12: Consistent Growth and Results
Consistent Growth and Results Revenue Growth ICE’s track record of performance spans 2008-2010 CAGR all economic environments Growth in ICE’s commodity and derivative markets is sustained by secular growth trends Broad geographic relevance of ICE’s product set drives demand Beneficiary of the
Slide 13: Appendix
Click to edit Master title style Appendix IntercontinentalExchange
Slide 14: ICE Summary Income Statement
ICE Summary Income Statement Change INCOME STATEMENT 1H11 1H10 Double-digit growth target over the long y/y term: Total Revenues $659 $578 14% o Record 1H11 revenue up 14% y/y; Total Expenses $265 $236 12% adjusted expenses1 up only 9% Operating Income $394 $342 15% Record 1H11 revenues driven b
Slide 15: ICE Summary Balance Sheet
ICE Summary Balance Sheet Strong 1H operating cash flow BALANCE SHEET 6/30/11 12/31/10 CHANGE o $321MM, + 24% y/y Assets Low leverage with debt to trailing Cash & ST Investments $757 $624 $133 twelve-month EBITDA of 0.5x; 0.8x Other Current Assets 27,175 22,952 4,223 post Cetip Current Assets 27
Slide 16: ICE Average Daily Volume History
ICE Average Daily Volume History 2011 January February March April May June July August September October November December ICE Futures Europe 1,176,543 1,241,612 1,055,675 866,718 1,029,922 1,123,487 904,827 1,123,145 ICE Futures U.S. 383,157 469,596 422,741 389,364 383,897 526,819 387,270 502,447
Slide 17: ICE Futures Rate Per Contract History
ICE Futures Rate Per Contract History 2011 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec ICE Futures Europe Futures $ 1.53 $ 1.50 $ 1.55 $ 1.59 $ 1.59 $ 1.57 $ 1.58 $ 1.58 ICE Futures U.S. Agricultural Futures & Options $ 2.06 $ 2.08 $ 2.15 $ 2.26 $ 2.34 $ 2.38 $ 2.39 $ 2.38 ICE Futures U.S. Finan
Slide 18: Non-GAAP Net Income Attributable to ICE & EPS Reconciliation
Non-GAAP Net Income Attributable to ICE & EPS Reconciliation In thousands, except per share amounts 6 Months 3 Months 6 Months 3 Months Ended Ended Ended Ended 6/30/11 6/30/11 6/30/10 6/30/10 Net income attributable to ICE $250,269 $121,365 $202,851 $101,688 Add: Acquisition-related transaction cost
Slide 19: Non-GAAP EBITDA Reconciliation
Non-GAAP EBITDA Reconciliation In thousands 6 Months 3 Months 6 Months 3 Months Ended Ended Ended Ended 6/30/11 6/30/11 6/30/10 6/30/10 Net income attributable to ICE $250,269 $121,365 $202,851 $101,688 Plus income tax expense 124,646 58,696 106,506 53,289 Less interest and investment income (1,834)
Slide 20: Non-GAAP Operating Income, Operating Margin & Operating Expense Reconciliation
Non-GAAP Operating Income, Operating Margin & Operating Expense Reconciliation In thousands 6 Months 3 Months 6 Months 3 Months Ended Ended Ended Ended 6/30/11 6/30/11 6/30/10 6/30/10 Total revenues $659,498 $325,218 $577,775 $296,155 Total operating expenses 265,022 134,340 235,665 117,860 Less: ac
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