Cboe Global Markets, Inc. · CBOE:CBOE
Cboe Global Markets — CBOE Holdings — Shareholder Meeting (May 2014)
27 slides from Cboe Global Markets's shareholder meeting presentation, May 22, 2014
Slide 1: Welcome: 2014 Annual Meeting of Stockholders
Welcome 2014 Annual Meeting of Stockholders Thursday, May 22, 2014 CBOE HOLDINGS 1
Slide 2: William J. Brodsky, Executive Chairman
William J. Brodsky Executive Chairman
Slide 3: Meeting Agenda
Meeting Agenda Introduction of Board of Directors and Senior Executives Vote on Proposals Business Review and Update Questions & Answers Report Preliminary Voting Results CBOE HOLDINGS 3
Slide 4: Annual Meeting of Stockholders
2014 Annual Meeting of Stockholders Thursday, May 22, 2014 CBOE HOLDINGS 4
Slide 5: Edward T. Tilly, Chief Executive Officer
Edward T. Tilly Chief Executive Officer
Slide 6: Forward-Looking Statements
Forward-Looking Statements This presentation may contain forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are those statements that reflect our expectations, assumptions or projections about the future and involve a nu
Slide 7: 2013 Marks Third Consecutive Year of Record Results
2013 Marks Third Consecutive Year of Record Results CAGR: + 18.5% CAGR: + 9.2% ¹Adjusted to reflect the impact of certain items. See appendix for “Non-GAAP Information.” CBOE HOLDINGS 7
Slide 8: Off to Strong Start in 2014
Off to Strong Start in 2014 ¹Adjusted to reflect the impact of certain items. See appendix for “Non-GAAP Information.” CBOE HOLDINGS 8
Slide 9: Creating Value for Stockholders
Creating Value for Stockholders Returned increased value to stockholders in 2013 Share price advanced 76% in 2013 Returned nearly $100 million in capital Increased quarterly dividend by 20% to $0.18 per share Returned more than $900 million in capital since IPO CBOE HOLDINGS 9
Slide 10: Remain Focused on Core Mission and Strategic Initiatives
Remain Focused on Core Mission and Strategic Initiatives Leverage and Develop Proprietary Products Optimize Revenue in Create value for stockholders Commoditized by generating industry-leading Products profit margins and growth rates through a diversified portfolio of risk management products Broade
Slide 11: Strong Growth from S&P 500 Index (SPX) Product Line
Strong Growth from S&P 500 Index (SPX) Product Line Volume gains in SPX options driven primarily by growth in SPX Weeklys SPX ADV rose 18% in 2013 SPX Weeklys grew by 98% in 2013 SPX ADV up 5% through April 2014 SPX Weeklys up 46% through April 2014 *includes SPX Weeklys See significant untapped pot
Slide 12: VIX Trading Continues to Achieve Strong Growth
VIX Trading Continues to Achieve Strong Growth Posted all-time volume records in VIX options and futures in 2013 and 1Q14 VIX options ADV rose 28% in 2013 ADV up 19% through April 2014 VIX futures ADV increased 67% in 2013 ADV up 22% through April 2014 Volatility space poised for growth Enhanced inv
Slide 13: Responding to Growing Demand for Education in Volatility Trading
Responding to Growing Demand for Education in Volatility Trading Investor education goes hand in hand with new products Options Institute classes and webinars in high demand Options Institute curriculum heavily weighted toward VIX futures and options and SPX trading Social media programs reflect str
Slide 14: CBOE RMC Attracts Most Active and Sophisticated VIX Customers
CBOE RMC Attracts Most Active and Sophisticated VIX Customers Boosting awareness of CBOE’s proprietary products CBOE’s 2014 RMC U.S. drew more than 320 participants Content-rich program focused on options and VIX-related strategies and trends Third annual RMC Europe to be held Sept. 3-5 CBOE HOLDING
Slide 15: Increasing Access to VIX Futures Trading Through Extended Trading Hours
Increasing Access to VIX Futures Trading Through Extended Trading Hours YTD 7.4% of VIX futures trading outside of regular U.S. trading hours, through April 2014 June 22 plan to extend trading hours to nearly 24X5, pending regulatory review Plan to add trading hours for VIX and SPX options later thi
Slide 16: Expanding Suite of Volatility Products
Expanding Suite of Volatility Products Launched Futures on Short-Term Volatility Index (VXST) on February 13th – Options on April 10th Leverage most compelling features of SPX Weeklys and volatility products Short-term VIX uses SPX options that expire in one week versus SPX monthly options Trading o
Slide 17: Expanding Volatility-Related Products and Benchmarks
Expanding Volatility-Related Products and Benchmarks Diversifying VIX product line across asset classes provides growth opportunity Plan to launch futures on the CBOE/CBOT 10-year U.S. Treasury Note Volatility Index (VXTYN Index) later this year, pending regulatory review Began disseminating index v
Slide 18: Optimizing Revenue and Market Share in Multiply-Listed Options
Optimizing Revenue and Market Share in Multiply-Listed Options Focused on being among the leaders in options market share CBOE total industry market share - 27.4% in April 2014, down slightly from 27.5% in December 2013 27.4% CBOE & C2 combined market share - 22.8% 29.3% in April 2014 and December 2
Slide 19: Considerable Opportunities to Grow and Lead the Options and Volatility Space
See Considerable Opportunities to Grow and Lead the Options and Volatility Space Leverage and Develop Proprietary Products Optimize Revenue in Commoditized Products Prudent Return Value to Allocation Stockholders Broaden of Capital Customer Base Capitalize on Favorable Operating Provide Leverage Hig
Slide 20: Questions & Answers
Questions & Answers
Slide 21: Annual Meeting of Stockholders
2014 Annual Meeting of Stockholders Thursday, May 22, 2014 CBOE HOLDINGS 21
Slide 22: Appendix Materials
Appendix Materials
Slide 23: GAAP to Non-GAAP Reconciliation For Years 2009, 2010 and 2011
GAAP to Non-GAAP Reconciliation For Years 2009, 2010 and 2011 GAAP to Non-GAAP Reconciliation (in thousands, except per share amounts) 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 FY 2009 FY2010 FY2011 Reconciliation of GAAP Net Income Allocated to Common Stockholder to Non-GAAP GAAP net income allocated to common
Slide 24: GAAP to Non-GAAP Reconciliation For 2012 and 2013
GAAP to Non-GAAP Reconciliation For 2012 and 2013 GAAP to Non-GAAP Reconciliation (in thousands, except per share amounts) 1Q12 2Q12 3Q12 4Q12 FY2012 1Q13 2Q13 3Q13 4Q13 FY2013 Reconciliation of GAAP Net Income Allocated to Common Stockholder to Non-GAAP GAAP net income allocated to common stockhold
Slide 25: GAAP to Non-GAAP Reconciliation For 2014
GAAP to Non-GAAP Reconciliation For 2014 GAAP to Non-GAAP Reconciliation (in thousands, except per share amounts) 1Q14 2Q14 3Q14 4Q14 FY2014 Reconciliation of GAAP Net Income Allocated to Common Stockholder to Non-GAAP GAAP net income allocated to common stockholders $ 48,528 Add: Accelerated stock-
Slide 26: Non-GAAP Information
Non-GAAP Information In addition to disclosing results determined in accordance with GAAP, CBOE Holdings has disclosed certain non-GAAP measures of operating performance. The non-GAAP measures provided in this presentation include core operating expenses, adjusted operating revenue, adjusted operati
Slide 27: CBOE, 400 South LaSalle Street, Chicago, Illinois
CBOE 400 South LaSalle Street Chicago, Illinois 60605 www.cboe.com