Intercontinental Exchange Inc. · NYSE:ICE
Intercontinental Exchange — Q4 2009 Earnings Presentation
21 slides from Intercontinental Exchange's earnings presentation, Feb 10, 2010
Slide 1: 4th Quarter and Year End 2009 Earnings Presentation
4th Quarter and Year End 2009 Earnings Presentation February 10, 2010 www.theice.com
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 - 4Q and Year End 2009
Earnings Conference Call - 4Q and Year End 2009 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 Sarah M. Stashak Vice President, Investor Relations and Dire
Slide 4: ICE Financial Highlights – 4Q09
ICE Financial Highlights – 4Q09 SLIDE 4 In millions, except per share amounts Change Record volumes, revenues, INCOME STATEMENT 4Q09 4Q08 yty operating income & cash Total Revenues $257 $207 24% generation Total Expenses $133 $110 21% Record transaction & clearing Operating Income $124 $97 27% r
Slide 5: Revenue & Expense Detail – 4Q09
Revenue & Expense Detail – 4Q09 SLIDE 5 4Q09 Consolidated Revenues by Segment 4Q09 Adj. Consolidated Expenses1 40% Futures SG&A 18% D&A 22% Market Data 11% 8% Professional & Other Services 13% Non-Cash Comp OTC 39% 49% Cash Comp Adj. 1 (In millions) 4Q09 4Q08 yty% (In millions) 4Q09 Adj. 4Q09 4Q08 y
Slide 6: ICE Energy Futures – 4Q09
ICE Energy Futures – 4Q09 SLIDE 6 ENERGY FUTURES & OPTIONS REVENUE Record $68 MM in revenue; + 28% yty $70 $66 $68 $64 $62 $60 Record ADV of 689 K contracts, up 21% yty; $53 $50 strength in Brent, Gasoil, UK utilities & emissions $40 Open interest at record levels; +24% yty at 12/31/09 $30 R
Slide 7: ICE Agricultural & Financial Futures – 4Q09
ICE Agricultural & Financial Futures – 4Q09 SLIDE 7 AG & FINANCIAL FUTURES & OPTIONS REVENUE $50 $34 MM in revenue; + 5% yty $44 $40 $38 Quarterly Sugar ADV +28% yty; USDX record $34 $34 quarter $33 $30 Open interest +15% yty for ags at 12/31/09 $20 Rate per Contract for ICE Futures U.S. $10
Slide 8: ICE OTC – 4Q09
ICE OTC – 4Q09 SLIDE 8 OTC ENERGY AVERAGE DAILY COMMISSIONS Record $127 MM in revenue; +37% yty $1,500 $1,338 o Record quarterly OTC energy revenue of $87 MM, $1,252 $1,081 $1,130 + 54% yty; record quarterly oil and power revenues $1,000 $872 Energy ADC of $1.3 MM in 4Q09; over $1.4 MM in Januar
Slide 9: ICE Summary Financials – FY 2009
ICE Summary Financials – FY 2009 SLIDE 9 In millions, except per share amounts Change Record volumes, revenues, INCOME STATEMENT FY 2009 FY 2008 operating income & cash yty generation Total Revenues $995 $813 22% o Record Futures ADV, +12% yty Total Expenses $482 $320 51% o Record OTC energy ADC,
Slide 10: 2010 Guidance
2010 Guidance SLIDE 10 Metric Guidance Date Provided 826 employees as of December 31, 2009; FY Headcount 2010 headcount expected to increase 4%-5%, 2/10/2010 excluding any M&A activity in 2010 1Q10: 74.6MM-75.2MM; FY2010: 74.7MM- Diluted Share Count 2/10/2010 75.7MM $45MM-$49MM in 2010, assuming ach
Slide 11: Track Record of Growth
Track Record of Growth SLIDE 11 Annual Revenue – ICE Total Record futures and OTC energy $995 $1,000 volume $900 $813 Over 200 new OTC energy $800 contracts $700 $600 $574 Established leading CDS clearing houses in U.S. and Europe $500 $400 Integration of TCC and Creditex $314 $300 $200 Di
Slide 12: Consistently Strong Financial Returns
Consistently Strong Financial Returns SLIDE 12 Continued growth in core business ICE – ADJUSTED EBITDA1 $600 $568 $496 Balanced focus on growth and return on $500 investment $400 $338 Disciplined M&A and capital investment $300 $199 $200 M&A synergies realization $100 $58 Pay for performan
Slide 13: Strategic Diversification
Strategic Diversification SLIDE 13 CUSTOMER DIVERSITY (OTC ENERGY REVENUES) PRODUCT DIVERSITY OTC Credit 17% Market Data/Other 11% 11% Soft/Ag Futures 2009 REVENUES 31% 4% GEOGRAPHIC DIVERSITY (CONSOLIDATED REVENUES) Index/FX Futures 100% OTC Energy 80% 65% 60% 69% 60% 26% Energy Futures 40% 20% 35%
Slide 14: Successful Credit Derivatives Innovation
Successful Credit Derivatives Innovation SLIDE 14 Key Features of ICE CDS Clearing CDS CLEARING GROWTH – U.S. & EUROPE $450 $6,000 Weekly Open Interest Widest range of cleared products, participants, $400 Weekly Vol. $5,000 geographies and services $350 Cumulative Vol. (Right Axis) $300 $4,000 N
Slide 15: Platform for Continued Growth
Platform for Continued Growth SLIDE 15 Strong Global Futures Franchise ICE’s commodities business is driven predominantly by commercial participants globally, strong performance regardless of economic climate and demonstrated new product success Energy and agricultural products serve as important
Slide 16: Appendix
APPENDIX Lice 16 www.theice.com
Slide 17: ICE Summary Balance Sheet
ICE Summary Balance Sheet SLIDE 17 In millions Strong operating cash flow BALANCE SHEET 12/31/09 12/31/08 CHANGE o $195 MM in 4Q09 o $487 MM for FY09 Assets Cash & ST Investments $554 $287 $268 Debt to trailing twelve-month EBITDA down to 0.5x Other Current Assets 18,905 12,266 6,640 Current Ass
Slide 18: Non-GAAP Adjusted Net Income & EPS
Non-GAAP Adjusted Net Income & EPS SLIDE 18 In thousands, except per share amounts 12 Months 3 Months 12 Months 3 Months Ended Ended Ended Ended 12/31/09 12/31/09 12/31/08 12/31/08 Net income attributable to ICE $315,988 $84,254 $300,972 $48,855 Add:NCDEX impairment costs 9,276 - 15,700 15,700 Add:
Slide 19: Non-GAAP Adjusted EBITDA
Non-GAAP Adjusted EBITDA SLIDE 19 In thousands 3 Months 3 Months 12 Months 12 Months 12 Months 12 Months 12 Months Ended Ended Ended Ended Ended Ended Ended 12/31/2009 12/31/2008 12/31/2009 12/31/2008 12/31/2007 12/31/2006 12/31/2005 Net income attributable to ICE $84,254 $48,855 $315,988 $300,972 $
Slide 20: Non-GAAP Adjusted Operating Income & Operating Margin
Non-GAAP Adjusted Operating Income & Operating Margin SLIDE 20 In thousands, except operating margins 12 Months 3 Months 12 Months 3 Months Ended Ended Ended Ended 12/31/09 12/31/09 12/31/08 12/31/08 Total Revenues $994,788 $256,554 $813,078 $207,260 Operating income $ 512,619 $ 123,870 $493,534 $ 9
Slide 21: Expense Reconciliation – 4Q09
Expense Reconciliation – 4Q09 SLIDE 21 In thousands 3 Months Ended 12/31/09 Total operating expenses $ 132,684 Add: severence costs (3,886) Add: True up of certain state tax items (comp. & SG&A) (5,623) Adjusted total operating expenses $ 123,175 21
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