Intercontinental Exchange Inc. · NYSE:ICE

Intercontinental Exchange — Sandler Global Exchange & Brokerage Conference 2012

16 slides from Intercontinental Exchange's conference presentation, Jun 8, 2012

  1. Slide 1: Sandler Global Exchange & Brokerage Conference

    SANDLER GLOBAL EXCHANGE & BROKERAGE CONF IntercontinentalExchange (ICE) JUNE 8, 2012

  2. 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

  3. Slide 3: ICE: A Focus on Growth and Innovation

    ICE: A Focus on Growth and Innovation Annual Revenue $1,400 $1,327 $1,200 $1,150 $995 $1,000 Millions $813 $800 $600 $574 $400 $314 $200 $156 $- 2005 2006 2007 2008 2009 2010 2011 IntercontinentalExchange 3

  4. Slide 4: Growth on Top of Growth: 1Q12

    Growth on Top of Growth: 1Q12 Volume Revenues EPS Op Cash Flow +9% +16% +19% +25% $365 $2.02 $186 245 195 $334 $155 $1.74 1Q11 1Q12 1Q11 1Q12 1Q11 1Q12 1Q11 1Q12 IntercontinentalExchange 4

  5. Slide 5: ICE Futures Volume and OTC Commissions

    ICE Futures Volume and OTC Commissions +3% y/y Annual Futures and Options ADV1 1,600 1,513 1,550 Thousands (contracts) 1,306 1,200 1,036 922 767 800 549 400 322 - 2005 2006 2007 2008 2009 2010 2011 YTD May 2012 OTC Energy Average Daily Commissions +16% y/y $2,000 $1,838 $1,578 $1,600 $1,374 $1,202 $

  6. Slide 6: Exposure to Multiple Drivers of Growth

    Exposure to Multiple Drivers of Growth Secular Drivers  Increasing global consumption of commodities  Volatility inherent in natural resource prices  Rising demand for risk management  Growth in emerging markets, demand slowly improving in U.S.  Regulatory change supportive of exchange & cleari

  7. Slide 7: Rising Demand for Commodities and Risk Management

    Rising Demand for Commodities and Risk Management World Energy Consumption Rising From 2008 to 2035, energy consumption is expected to grow by 53%. Source: U.S Energy Information Administration Global Agricultural Demand By 2050 the demand for food is expected to have increased by between 70% and 10

  8. Slide 8: Global Oil Benchmarks

    Global Oil Benchmarks Brent, Gas Oil & WTI Futures and Options Average Daily Volume 1,000 800 Thousands (contracts) 600 400 200 0 2005 2006 2007 2008 2009 2010 2011 YTD May 2012 Brent Gas Oil WTI IntercontinentalExchange 8

  9. Slide 9: Global Growth and Geographic Diversity

    Global Growth and Geographic Diversity 2011 Consolidated Revenues 56% 51% 64% 44% 49% 36% 2009 2010 2011 International US IntercontinentalExchange 9

  10. Slide 10: Financial Reform Shaping Global Markets

    Financial Reform Shaping Global Markets IntercontinentalExchange 10

  11. Slide 11: Strategic Approach to Derivatives Markets

    Strategic Approach to Derivatives Markets Opportunity to Bring ICE’s Develop a platform expand into new platform and Brought Options markets expertise in that provides asset classes & Establish a new transparency & complement energy markets to transparent and benefit business risk Nascent emerging s

  12. Slide 12: Disciplined Investment

    Disciplined Investment Best-in-Class Return on Invested Capital 19% 19% 17% 15% 2009 2010 2011 *LTM 2012 CME NYX ICE (1) ROIC=(Operating Income x (1-Tax Rate)) / (Avg Debt + Avg Shareholders Equity + Avg Minority Interest – Avg Cash, Cash Equivalents, & ST Investments) *LTM data as of 1Q 2012 Interc

  13. Slide 13: Long-term Growth: Rising Open Interest

    Long-term Growth: Rising Open Interest 70,000 Futures and OTC Markets 60,000 Open Interest (contracts in thousands) 50,000 40,000 30,000 20,000 10,000 - 2006 2007 2008 2009 2010 2011 1Q12 IntercontinentalExchange 13

  14. Slide 14: Appendix

    APPENDIX

  15. Slide 15: ICE Average Daily Volume History

    ICE Average Daily 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 ICE Futures U.S. 355,406 437,690 435,110 447,306 389,267 ICE Futures Canada 18,211 30,151 24,887 27,955 17,

  16. Slide 16: 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 ICE Futures U.S. Agricultural Futures & Options $ 2.55 $ 2.71 $ 2.68 $ 2.70 $ 2.58 ICE Futu

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