Intercontinental Exchange Inc. · NYSE:ICE
Intercontinental Exchange — Merger or Acquisition (September 2008)
8 slides from Intercontinental Exchange's merger presentation, Sep 12, 2008
Slide 1: Serving Dealers in Global Credit Markets: Financial Review and Guidance Update
Serving Dealers in Global Credit Markets IntercontinentalExchange and Creditex Group Financial Review and Guidance Update September 12, 2008
Slide 2: Forward-Looking Statements
2 Certain statements in this presentation may contain forward-looking information regarding IntercontinentalExchange, Inc. ("ICE") and its wholly-owned subsidiary, Creditex Group Inc. ("Creditex"), that are intended to be covered by the safe harbor for "forward-looking statements" provided by the Pr
Slide 3: Compelling Strategic Rationale
3 Compelling Strategic Rationale Support expansion of over-the-counter (OTC) execution and processing services to the $60+ trillion market for credit derivatives, one of the largest OTC markets today Benefit from Creditex's hybrid model, including a brokerage team and electronic execution Diversify
Slide 4: Transaction Economics
Transaction Economics 4 (1) Share component pricing at $140.29 per share based on the average price of ICE stock at signing, pursuant to contract terms. (2) Share component pricing at $85.50 per share in accordance with U.S. GAAP. (3) Net Creditex Purchase Price = Creditex Purchase Price - Net Asset
Slide 5: ICE Share Repurchase Update
ICE Share Repurchase Update ICE Board of Directors recently authorized a share buyback program of up to $500 million over 12 months 3.22 million ICE shares repurchased through 9/11/08 Share repurchases to date have effectively offset approximately 60% of the dilution from ICE shares issued in conjun
Slide 6: Creditex 1H08 Performance
Creditex 1H08 Performance 6 36% of trade execution was conducted electronically in 1H08, compared to 21% electronic in 1H07 Strong Creditex brokerage trends in 2Q08 relative to peers Opportunity set evolving as CDS segment matures due to industry efforts around processing and clearing Unaudited pro-
Slide 7: ICE 2008 Guidance Update to Reflect Creditex Addition
7 ICE 2008 Guidance Update to Reflect Creditex Addition ICE expects non-cash compensation for the second half of 2008 to be in the range of $20 million - $24 million, assuming certain full year performance targets are achieved. The combined companies had 785 employees at September 1, 2008. ICE expec
Slide 8: ICE: Market Leader Positioned for Continued Growth
8 ICE: Market Leader Positioned for Continued Growth Combined company LTM revenue of approximately $898 MM through 6/30/08 Diversified product offering across multiple markets and geographies High growth markets; track record of success in voice and electronic execution models Leaders in innovation
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