Intercontinental Exchange Inc. · NYSE:ICE
Intercontinental Exchange — Citi Financial Services Conference 2012
20 slides from Intercontinental Exchange's conference presentation, Mar 7, 2012
Slide 1: Citi Financial Services Conference – IntercontinentalExchange (ICE)
Citi Financial Services Conference IntercontinentalExchange (ICE) March 7, 2012
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 o Growth and innovation leader among exchanges Average Daily Volumes: Futures and OTC Broad distribution and network effect 3,500 +21% y/y o 3 futures exchanges, 2 OTC markets, 5 clearing houses 3,000 Or
Slide 4: Consistent Industry Leading Growth & Profitability
Consistent Industry Leading Growth & Profitability Revenue Growth +15% y/y $1,400 $1,327 Long-term double-digit growth target: $1,150 $1,200 o Record 2011 revenue, up 15% y/y $995 $1,000 $813 o Adjusted expenses1 up only 8% $800 $574 Record 2011 revenues driven by: $600 $400 o Record futures rev
Slide 5: Strong Balance Sheet & Cash Flow
Strong Balance Sheet & Cash Flow Operating Cash Flow +34% y/y Balance Sheet & Return Metrics as of Dec 31, 2011 $800 $713 $713MM in operating cash flow in 2011; $823MM in unrestricted cash $600 $534 $487 $3B credit facility secured in 2011 $375 $400 o $0.9B outstanding debt $288 $200 o $1.8B ava
Slide 6: ICE Futures
ICE Futures Annual Futures and Options ADV1 +16% y/y 2011 futures revenues $604MM, +20% y/y 1,600 1,513 2011 average daily volume (ADV) of 1.5MM, +16% y/y 1,306 Strength in Brent, Gas Oil, Emissions, Russell 1,200 1,036 o EU Futures 2011 ADV of 1.1MM, +24% y/y 922 767 Rate Per Contract 800 E
Slide 7: ICE OTC Energy
ICE OTC Energy OTC Energy ADC +15% y/y ICE OTC Energy Markets: 2011 $1,578 $1,600 $1,374 OTC energy revenues of $405MM, +14% y/y $1,202 $1,200 $1,117 o OTC Energy Average Daily Commissions (ADC) of $1.6MM, +15% y/y $845 o January OTC Energy ADC above $2MM $800 OTC energy volumes of 417MM contrac
Slide 8: ICE OTC Credit
ICE OTC Credit OTC Credit $200 $165 $166 $167 Credit Default Swaps (CDS) Business Overview $160 2011 CDS revenue of $167MM, +1% y/y $120 o $100MM Creditex revenues, 61% electronic $80 o $67MM revenues from CDS clearing, +12% y/y $40 $0 Leading Global CDS Clearing Solution 2009 2010 2011 Through
Slide 9: Multiple Drivers of Growth
Multiple Drivers of Growth Secular Drivers ICE 4Q11 Revenue Diversification Increasing global consumption of commodities Volatility inherent in natural resource prices OTC Credit Market Data/Other Rising demand for risk management 13% Growth in emerging markets, recovery in Western economies
Slide 10: Exposure to Growth Markets
Exposure to Growth Markets Geographic Diversity 2011 Consolidated Revenues Geographic diversification International US • 49% of revenues from outside of U.S. • Global platform serving customers in more than 70 countries 51% 56% • Products relevant around the world, levered to 64% emerging economies
Slide 11: Strategic Approach to New Markets
Strategic Approach to New Markets Product & Platform Initiatives: 2011 New Products & Services • Execution and clearing enhancements • 500 new products introduced in the • Brent and Gasoil contract enhancements past 3 years • Swaps data repository registration • Leverage strong energy footprint • Ov
Slide 12: Consistent Growth and Results
Consistent Growth and Results ICE’s track record spans economic cycles Revenue Growth 2008-2011 CAGR 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 continued move from analo
Slide 13: Appendix
Appendix
Slide 14: Consistent Growth
Consistent Growth Annual Futures and OTC Revenue Market Data Revenue $600 $120 $500 $100 $400 $80 $300 $60 $200 $40 $100 $20 $- $- 2006 2007 2008 2009 2010 2011 2006 2007 2008 2009 2010 2011 Futures Revenue OTC Revenue Market Data Revenue Annual Revenue and Expenses Diluted EPS $1,400 $7.00 $1,200 $
Slide 15: 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
Slide 16: ICE Summary Income Statement
ICE Summary Income Statement Change INCOME STATEMENT 4Q11 4Q10 y/y Total Revenues $327 $285 15% 4Q11 revenue +15%, adj. diluted EPS +30% Total Expenses $132 $126 5% Transaction and clearing revenues +14% y/y Operating Income $195 $159 23% Operating Margin 60% 56% 4 pts Futures & OTC energy vol
Slide 17: ICE Summary Balance Sheet
ICE Summary Balance Sheet BALANCE SHEET 12/31/11 12/31/10 CHANGE Assets Low leverage with debt to trailing twelve-month EBITDA of 1.0x as of Unrestricted Cash $823 $622 $201 12/31/11 Other Current Assets 31,782 22,954 8,828 Current Assets 32,605 23,576 9,030 Unrestricted cash of $823MM; $888MM d
Slide 18: ICE Average Daily Volume & Futures Rate per Contract History
ICE Average Daily Volume & Futures Rate per Contract History ICE Average Daily Volume 2012 January February March April May June July August September October November December ICE Futures Europe 1,113,282 1,199,734 ICE Futures U.S. 355,406 437,690 ICE Futures Canada 18,211 30,151 CCFE 753 330 TOTAL
Slide 19: Non-GAAP Net Income Attributable to ICE & EPS Reconciliation
Non-GAAP Net Income Attributable to ICE & EPS Reconciliation In thousands, except per share amounts 12 Months 12 Months 3 Months 3 Months Ended Ended Ended Ended 12/31/11 12/31/10 12/31/11 12/31/10 Net income attributable to ICE $509,673 $398,298 $126,773 $99,132 Add: Costs expensed related to the N
Slide 20: Non-GAAP EBITDA, Operating Income, Operating Margin & Operating Expense Reconciliation
Non-GAAP EBITDA, Operating Income, Operating Margin & Operating Expense Reconciliation In thousands, except operating margins 12 Months 12 Months 3 Months 3 Months Ended Ended Ended Ended 12/31/11 12/31/10 12/31/11 12/31/10 Net income attributable to ICE $509,673 $398,298 $126,773 $99,132 Plus incom
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