Slide 1: First Quarter 2012 Earnings Presentation
IntercontinentalExchange First Quarter 2012 Earnings Presentation May 2, 2012
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
Slide 3: Earnings Conference Call - 1Q 2012
Earnings Conference Call -1Q 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 A. Shale, CFA Vice President, Investor Relations & Director, Inves
Slide 4: Consistent Growth
Consistent Growth Revenues 1Q12 Financial Performance $1,400 $1,327 Record revenues and net income $1,150 All revenue lines up: futures, over-the-counter $1,050 $995 (OTC) energy, OTC credit and market data $813 Operating margins up to 62% $700 $574 +9% y/y Double digit earnings growth; dil.
Slide 5: ICE Financial Highlights – 1Q12
ICE Financial Highlights – 1Q12 In millions, except per share amounts Change INCOME STATEMENT 1Q12 1Q11 Industry-leading top and bottom-line growth y/y o 1Q12 revenue +9%, diluted EPS +16% Total Revenues $365 $334 9% Total Expenses $140 $131 7% Growing transaction & clearing revenues +8%y/y Oper
Slide 6: Revenue & Expense Detail – 1Q12
Revenue & Expense Detail – 1Q12 1Q12 Consolidated Revenues 1Q12 Consolidated Expenses SG&A OTC Credit & Rent Market Data & Other 11% Tech. & 11% 11% Communications 23% 8% D&A Soft/Ag Futures 11% Prof. Services 34% & Acq. Costs 9% 3% Index/FX OTC Energy Futures Non-Cash Comp. 10% Cash Comp.& 30% 39%
Slide 7: ICE Futures segment – 1Q12
ICE Futures segment – 1Q12 Annual Futures & Options Volume1 400 381 1Q12 futures revenues $160MM, +1% y/y 329 1Q12 average daily volume (ADV) of 1.6MM, -3% y/y 300 262 237 Strength in Brent and Emissions futures and options 196 200 -3% y/y% Rate Per Contract Energy Ags Financials 96 100 1Q12
Slide 8: ICE OTC segment – 1Q12
ICE OTC segment – 1Q12 Annual OTC Average Daily Commissions (ADC) +15% y/y 1Q12 OTC revenues of $163MM, +15% y/y $3,000 o Record OTC energy volume $2,591 $2,500 $2,241 1Q12 OTC energy revenues of $123MM, +19% y/y $2,031 o Record OTC Energy Average Daily Commissions (ADC) $2,000 $1,857 of $1.95MM
Slide 9: Robust Cash Generation & Returns
Robust Cash Generation & Returns ICE Operating Cash Flow $800 $713 Balance Sheet & Return Metrics as of March 31, 2012 $600 $534 $487 $186MM in operating cash flow in 1Q12, +19% y/y $375 $400 +19% y/y $968MM in unrestricted cash $288 $186 $3B existing credit facility $200 o $875MM outstanding
Slide 10: Leading Solutions for Financial Reform
Leading Solutions for Financial Reform Rule-making Continues Finalized Rules Customer Segregation Regime for Swaps Position Limits Swap Dealer and Major Swap Participant Definitions Parameters defining SIFIs EMIR in rulemaking phase MIFID II in early stages of policy formation Sing
Slide 11: Rising Importance of ICE Global Benchmarks
Rising Importance of ICE Global Benchmarks Brent and Gasoil ADV & OI ADV (000) OI (000) ICE Crude Markets 900 3,000 Brent is the global oil benchmark; BFOE market 800 2,500 700 has 3-4x physical production of WTI 600 2,000 Approx 70% of physical pricing references Brent 500 400 1,500 crude 300 1
Slide 12: Extending Products & Markets
Extending Products & Markets OTC Energy New Product Revenue Millions Continued Product Development Evolution of Brent & Gasoil contracts Corn & soybean futures launch May 14 Canadian wheat futures – Dec 12 contract Futures & OTC energy/ag options contracts EU Aviation Allowances 700 clea
Slide 13: Consistent Growth and Innovation
Consistent Growth and Innovation OTC Energy and Futures Open Interest OTC Futures OI (000) OI (000) Global derivatives market leader 60,000 9,000 8,000 Designing solutions and implementation roadmap 50,000 7,000 Emphasis on risk management & capital efficiency 40,000 6,000 Providing solutions
Slide 14: Appendix
APPENDIX
Slide 15: ICE Summary Balance Sheet
ICE Summary Balance Sheet In millions BALANCE SHEET 3/31/12 12/31/11 CHANGE Low leverage with debt to trailing Assets EBITDA of 0.9x as of 3/31/12 Unrestricted Cash $968 $823 $145 Unrestricted cash of $968MM; Other Current Assets 31,539 31,782 -243 $875MM debt outstanding as of Current Assets 32
Slide 16: 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 17: Strategic Approach to Growth & Global Market Position
Strategic Approach to Growth & Global Market Position Opportunity to Bring ICE’s Develop a expand into new platform and platform that Brought Establish a Options expertise in asset classes & provides transparency & new risk markets Nascent energy markets benefit business transparent and stability; m
Slide 18: 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 ICE Futures U.S. 355,406 437,690 435,110 447,306 ICE Futures Canada 18,211 30,151 24,887 27,955 CCFE 753 330 N/A - No
Slide 19: 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 ICE Futures U.S. Agricultural Futures & Options $ 2.55 $ 2.71 $ 2.68 $ 2.70 ICE Futures U.S. Finan
Slide 20: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation In thousands 3 Months 3 Months Ended Ended 3/31/12 3/31/11 Net income attributable to ICE $147,865 $128,904 Plus income tax expense 65,296 66,138 Less interest and investment income (240) (988) Plus interest expense 10,068 7,743 Plus depreciation and amortization expen