CME Group Inc. Reports Fourth-Quarter 2012 Financial Results

         CME Group Inc. Reports Fourth-Quarter 2012 Financial Results

PR Newswire

CHICAGO, Feb. 5, 2013

CHICAGO, Feb. 5, 2013 /PRNewswire/ --CME Group Inc. (NASDAQ: CME) today
reported revenues of $661 million and operating income of $376 million for the
fourth quarter 2012. Net income attributable to CME Group was $167 million
and diluted earnings per share were $0.50.

Fourth-quarter 2012 results included a $43.5 million tax expense due to a
revaluation of our deferred income tax liabilities as a result of revisions to
our state tax apportionment, as well as increases in deferred income tax
liabilities associated with S&P Dow Jones Indices. On a non-GAAP basis,
fourth-quarter diluted EPS would have been $0.63.^1

"Despite facing a difficult environment with low volatility in 2012, we made
significant progress in advancing our global strategy while preparing for the
changing regulatory landscape," said CME Group Executive Chairman and
President Terry Duffy. "We will further expand our footprint in Europe with
the proposed launch of a new London-based exchange, and we continued to
strengthen our position in Asia. As the Dodd-Frank clearing mandate nears
implementation in March, we are well positioned to provide clearing services
to the OTC market. Throughout 2012 and into this year, we continue to work
with regulators and other futures industry participants to strengthen customer
protections and ensure the integrity of these critical markets."

"We are pleased with the trends we have seen so far in 2013, especially in
interest rates and energy," said CME Group Chief Executive Officer Phupinder
Gill. "Our interest rate products in January posted the highest monthly
volumes since second-quarter 2012, spurred by improving expectations of
economic growth and the current rotation from fixed income to equities.
Average daily volumes for our energy products are at the best levels in six
months, due to improved infrastructure and increased production expectations
in the U.S. Also, foreign exchange volatility has risen, and we have seen a
corresponding growth in volumes over the past several months. Looking ahead,
we will build on this momentum as we continue to globalize the business and
position CME Group for success over the long term."

Fourth-quarter 2012 average daily volume was 10.2 million contracts, down 13
percent from fourth-quarter 2011. This drove a 9 percent decrease in clearing
and transaction fee revenues to $545 million. Fourth-quarter total average
rate per contract was $0.83, up 2 percent compared with fourth-quarter 2011.

Fourth-quarter 2012 operating expense was $285 million and operating margin
was 57 percent. Operating margin is defined as operating income as a
percentage of total revenues. During the fourth quarter, the effective tax
rate was 40.1 percent^1, excluding the tax expense discussed earlier.

As of December 31, the company had $1.7 billion of cash and marketable
securities and $2.9 billion of debt. The company paid dividends totaling $1.2
billion dollars during 2012, with $581 million of that total in the fourth
quarter alone. A first-quarter 2013 dividend of $0.45 per share, payable
March 25, 2013, to shareholders of record March 8, 2013, was just announced on
January 30.

CME Group will hold a conference call to discuss fourth-quarter and full-year
2012 results at 4:30 p.m. Eastern Time today. A live audio Webcast of the
call will be available on the Investor Relations section of CME Group's Web
site at www.cmegroup.com. An archived recording will be available for up to
two months after the call.

As the world's leading and most diverse derivatives marketplace, CME Group
(www.cmegroup.com) is where the world comes to manage risk. CME Group
exchanges offer the widest range of global benchmark products across all major
asset classes, including futures and options based on interest rates, equity
indexes, foreign exchange, energy, agricultural commodities, metals, weather
and real estate.CME Group brings buyers and sellers together through its CME
Globex^® electronic trading platform and its trading facilities in New York
and Chicago. CME Group also operates CME Clearing, one of the world's leading
central counterparty clearing providers, which offers clearing and settlement
services across asset classes for exchange-traded contracts and
over-the-counter derivatives transactions. These products and services ensure
that businesses everywhere can substantially mitigate counterparty credit
risk.

CME Group is a trademark of CME Group Inc. The Globe Logo, CME, Globex and
Chicago Mercantile Exchange are trademarks of Chicago Mercantile Exchange
Inc. CBOT and the Chicago Board of Trade are trademarks of the Board of Trade
of the City of Chicago, Inc. NYMEX, New York Mercantile Exchange and
ClearPort are registered trademarks of New York Mercantile Exchange, Inc.
COMEX is a trademark of Commodity Exchange, Inc. KCBOT, KCBT and Kansas City
Board of Trade are trademarks of The Board of Trade of Kansas City, Missouri,
Inc. All other trademarks are the property of their respective owners.
Further information about CME Group (NASDAQ: CME) and its products can be
found at www.cmegroup.com.

Statements in this press release that are not historical facts are
forward-looking statements. These statements are not guarantees of future
performance and involve risks, uncertainties and assumptions that are
difficult to predict. Therefore, actual outcomes and results may differ
materially from what is expressed or implied in any forward-looking
statements. Among the factors that might affect our performance are:
increasing competition by foreign and domestic entities, including increased
competition from new entrants into our markets and consolidation of existing
entities; our ability to keep pace with rapid technological developments,
including our ability to complete the development, implementation and
maintenance of the enhanced functionality required by our customers; our
ability to continue introducing competitive new products and services on a
timely, cost-effective basis, including through our electronic trading
capabilities, and our ability to maintain the competitiveness of our existing
products and services, including our ability to provide effective services to
the over-the-counter market; our ability to adjust our fixed costs and
expenses if our revenues decline; our ability to maintain existing customers,
develop strategic relationships and attract new customers; our ability to
expand and offer our products outside the United States; changes in domestic
and non-U.S. regulations; changes in government policy, including policies
relating to common or directed clearing and changes as a result of legislation
stemming from the implementation of the Dodd-Frank Act; the costs associated
with protecting our intellectual property rights and our ability to operate
our business without violating the intellectual property rights of others; our
ability to generate revenue from our market data that may be reduced or
eliminated by the growth of electronic trading, the state of the overall
economy or declines in subscriptions; changes in our average rate per contract
due to shifts in the mix of the products traded, the trading venue and the mix
of customers (whether the customer receives member or non-member fees or
participates in one of our various incentive programs) and the impact of our
tiered pricing structure; the ability of our financial safeguards package to
adequately protect us from the credit risks of clearing members; the ability
of our compliance and risk management methods to effectively monitor and
manage our risks, including our ability to prevent errors and misconduct and
protect our infrastructure against security breaches and misappropriation of
our intellectual property assets; changes in price levels and volatility in
the derivatives markets and in underlying fixed income, equity, foreign
exchange, interest rate and commodities markets; economic, political and
market conditions, including the volatility of the capital and credit markets
and the impact of economic conditions on the trading activity of our current
and potential customers stemming from the financial crisis that began in 2008
and any other future crises; our ability to accommodate increases in trading
volume and order transaction traffic without failure or degradation of
performance of our trading and clearing systems; our ability to execute our
growth strategy and maintain our growth effectively; our ability to manage the
risks and control the costs associated with our acquisition, investment and
alliance strategy; our ability to continue to generate funds and/or manage our
indebtedness to allow us to continue to invest in our business; industry and
customer consolidation; decreases in trading and clearing activity; the
imposition of a transaction tax or user fee on futures and options on futures
transactions and/or the repeal of the 60/40 tax treatment of such
transactions; the unfavorable resolution of material legal proceedings and the
seasonality of the futures business. More detailed information about factors
that may affect our performance may be found in our filings with the
Securities and Exchange Commission, including our most recent periodic reports
filed on Form 10-K and Form 10-Q, which are available in the Investor
Relations section of the CME Group Web site. We undertake no obligation to
publicly update any forward-looking statements, whether as a result of new
information, future events or otherwise.

1. A reconciliation of the non-GAAP financial results mentioned to the
respective GAAP figures can be found within the Reconciliation of GAAP to
Non-GAAP Measures chart at the end of the financial statements.



CME Group Inc. and Subsidiaries
Consolidated Balance Sheets
(in millions)
                                          December 31, 2012  December 31, 2011
ASSETS
Current Assets:
Cash and cash equivalents                 $   1,604.7        $   1,042.3
Marketable securities                     56.6               47.6
Accounts receivable, net of allowance     267.5              289.4
Other current assets (includes $40.0 in   204.3              232.6
restricted cash)
Cash performance bonds and guaranty fund  6,584.8            9,333.9
contributions
Total current assets                      8,717.9            10,945.8
Property, net of accumulated              724.0              821.9
depreciation and amortization
Intangible assets—trading products        17,175.3           17,040.5
Intangible assets—other, net              2,853.7            3,312.8
Goodwill                                  7,566.9            7,984.0
Other assets (includes $73.0 and $20.5    1,825.4            653.7
in restricted cash)
Total Assets                              $   38,863.2       $   40,758.7
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable                          $   41.7           $   31.1
Short-term debt                           749.7              —
Other current liabilities                 240.7              250.2
Cash performance bonds and guaranty fund  6,584.8            9,333.9
contributions
Total current liabilities                 7,616.9            9,615.2
Long-term debt                            2,106.8            2,106.8
Deferred income tax liabilities, net      7,413.3            7,226.8
Other liabilities                         220.5              187.6
Total Liabilities                         17,357.5           19,136.4
Redeemable non-controlling interest       80.8               70.3
CME Group shareholders' equity            21,419.1           21,552.0
Non-controlling interest                  5.8                —
Total Equity                              21,424.9           21,552.0
Total Liabilities and Equity              $   38,863.2       $   40,758.7







CME Group Inc. and Subsidiaries
Consolidated Statements of Income
(dollars in millions, except per share amounts; shares in thousands)
                         Quarter Ended                    Year Ended
                         December 31,                     December 31,
                         2012              2011           2012      2011
Revenues
Clearing and             $   544.6         $   599.1      2,371.5   $ 2,710.9
transaction fees
Market data and          79.3              105.8          387.1     427.7
information services
Access and               23.3              14.4           88.8      49.2
communication fees
Other                    13.7              17.2           67.2      92.8
Total Revenues           660.9             736.5          2,914.6   3,280.6
Expenses
Compensation and         113.0             116.0          496.7     475.7
benefits
Communications           9.3               10.6           40.1      42.3
Technology support       14.0              13.4           50.7      52.1
services
Professional fees and    27.6              35.7           126.8     126.1
outside services
Amortization of          25.9              32.8           116.2     132.0
purchased intangibles
Depreciation and         33.9              33.4           136.9     128.5
amortization
Occupancy and            19.2              20.6           77.0      77.5
building operations
Licensing and other      19.4              20.2           82.6      84.9
fee agreements
Other                    23.0              63.4           95.6      140.4
Total Expenses           285.3             346.1          1,222.6   1,259.5
Operating Income         375.6             390.4          1,692.0   2,021.1
Non-Operating Income
(Expense)
Investment income        7.4               9.6            38.7      36.7
Gains (losses) on
derivative               (0.1)             —              (0.1)     (0.1)
investments
Interest and other       (44.0)            (29.1)         (132.2)   (116.9)
borrowing costs
Equity in net gains
(losses) of              15.9              (1.2)          30.7      (4.3)
unconsolidated
subsidiaries
Other non-operating      (1.3)             —              64.3      —
income (expense)
Total Non-Operating      (22.1)            (20.7)         1.4       (84.6)
Income before Income     353.5             369.7          1,693.4   1,936.5
Taxes
Income tax provision     185.4             (377.0)        786.7     122.1
(benefit)
Net Income               168.1             746.7          906.7     1,814.4
Less: net income
(loss) attributable      1.3               0.8            10.4      2.1
to non-controlling
interests
Net Income
Attributable to CME      $   166.8         $   745.9      $ 896.3   $ 1,812.3
Group
Earnings per Common
Share Attributable to
CME Group:
Basic                    $   0.50          $   2.26       $ 2.71    $ 5.45
Diluted                  0.50              2.25           2.70      5.43
Weighted Average
Number of Common
Shares:
Basic                    331,734           330,625        331,252   332,737
Diluted                  332,804           331,532        332,319   333,811
Note: In the fourth quarter of 2012, the company reclassified 2012 unused bank
line of credit fees of $8.6 million from other operating expenses to interest
and other borrowing costs.





CME Group Inc. and Subsidiaries
Quarterly Operating Statistics
                     4Q 2011       1Q 2012       2Q 2012    3Q 2012   4Q 2012
Trading Days         63            62            64         63        64
Quarterly Average Daily Volume (ADV)
CME Group ADV (in thousands)
Product Line         4Q 2011       1Q 2012       2Q 2012    3Q 2012   4Q 2012
Interest rates       4,729         5,613         5,136      4,514     4,094
Equities             3,147         2,390         2,919      2,391     2,532
Foreign exchange     820           846           920        846       767
Energy               1,704         1,952         1,741      1,590     1,489
Agricultural         1,004         1,122         1,288      1,171     982
commodities
Metals               315           385           372        327       324
Total                11,719        12,308        12,376     10,839    10,188
Venue
Electronic           9,864         10,177        10,595     9,293     8,899
Open outcry          1,173         1,348         1,109      979       751
Privately negotiated 204           229           238        208       210
Exchange-traded      11,240        11,754        11,942     10,481    9,859
Total
CME ClearPort        479           554           434        358       329
Total                11,719        12,308        12,376     10,839    10,188
Average Rate Per Contract (RPC)
CME Group RPC
Product Line         4Q 2011       1Q 2012       2Q 2012    3Q 2012   4Q 2012
Interest rates       $  0.480      $  0.475      $  0.485   $ 0.481   $ 0.494
Equities             0.705         0.692         0.674      0.685     0.697
Foreign exchange     0.828         0.841         0.807      0.808     0.835
Energy               1.507         1.517         1.496      1.473     1.487
Agricultural         1.230         1.216         1.264      1.301     1.298
commodities
Metals               1.706         1.647         1.649      1.693     1.709
Average RPC          $  0.811      $  0.811      $  0.812   $ 0.822   $ 0.831
Venue
Exchange-traded      $  0.748      $  0.737      $  0.750   $ 0.757   $ 0.771
CME ClearPort        2.290         2.388         2.510      2.719     2.646
Note: The fourth quarter volume and RPC data does not include volume and
revenue from our acquisition of the Kansas City Board of Trade completed on
November 30, 2012.







CME Group Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Measures
(dollars in millions, except per share amounts; shares in thousands)
                                                             Quarter Ended
                                                             December 31, 2012
GAAP Results
Revenues                                                     $      660.9
Expenses                                                     285.3
Operating income                                             375.6
Operating margin                                             56.8%
Non-Operating income (expense)                               (22.1)
Income before income taxes                                   353.5
Income tax provision (benefit)                               185.4
Effective tax rate                                           52.4%
Net income                                                   168.1
Less: Net income attributable to redeemable non-controlling  1.3
interest
Net Income Attributable to CME Group                         $      166.8
Earnings per Common Share Attributable to CME Group:
Basic                                                        $      0.50
Diluted                                                      0.50
Adjustments
Reduction to income tax provision^1                          (43.5)
Addition to net income                                       43.5
Non-GAAP results, excluding adjustments
Revenues                                                     $      660.9
Expenses                                                     285.3
Operating income                                             375.6
Operating margin                                             56.8%
Non-Operating income (expense)                               (22.1)
Income before income taxes                                   353.5
Income tax provision (benefit)                               141.9
Effective tax rate                                           40.1%
Net income                                                   211.6
Less: Net income attributable to non-controlling interests   1.3
Net Income Attributable to CME Group                         $      210.3
Adjusted earnings per Common Share Attributable to CME
Group:
Basic                                                        $      0.63
Diluted                                                      0.63
Weighted Average Number of Common Shares:
Basic                                                        331,734
Diluted                                                      332,804

1) Adjustment to tax expense relates to a revaluation of our deferred tax
liabilities as a result of revisions to our state tax apportionment, as well
as increases in deferred income tax liabilities associated with S&P Dow Jones
Indices.

CME-G

SOURCE CME Group Inc.

Website: http://www.cmegroup.com
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Contact, John Peschier, +1-312-930-8491