Slide 1: 2Q20 Earnings Supplement
Intercontinental Exchange Earnings Supplement Second Quarter 2020 July 30, 2020 2Q20 Earnings Supplement July 30, 2020
Slide 2: Cautionary Statement Regarding Forward Looking Statements
CAUTIONARY STATEMENT REGARDING 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 ICE’s business that are not historical facts are forward-look
Slide 3: ICE 2Q20 Earnings Call Participants
ICE 2Q20 EARNINGS CALL PARTICIPANTS Management: Jeff Sprecher Ben Jackson Scott Hill Chairman & CEO President Chief Financial Officer Chairman, NYSE Investor Relations: Warren Gardiner, CFA Vice President, Investor Relations warren.gardiner@theice.com Mary Caroline O'Neal, CPA Manager, Investor Rela
Slide 4: 2Q20 Highlights
2Q20 HIGHLIGHTS in millions except per share amounts Strong operating performance INCOME STATEMENT HIGHLIGHTS 2Q20 2Q19 % Chg Net revenue +8% y/y, CC Net Revenues $1,395 $1,298 8% Adj. Op Expenses $575 $540 6% Data revenueTrading & Clearing +4% y/y, CC revenue Adj. Op Income $820 $758 8% +13% y/y, C
Slide 5: 2Q20 Trading & Clearing Segment
2Q20 TRADING & CLEARING SEGMENT ▪ 2Q20 trading & clearing revenue +13% y/y, CC ▪ 2Q20 average daily volume (ADV): energy +14% y/y, other crude & refined products +19% y/y, NA nat gas +44% y/y, EU nat gas +21% y/y, emissions +14% y/y, MSCI +15% y/y ▪ July open interest (OI): energy +17% y/y including
Slide 6: 2Q20 Data & Listings Segment
2Q20 DATA & LISTINGS SEGMENT ▪ 2Q20 record data revenue +4% y/y, in constant currency driven by strong growth in the ICE Global Network, ICE Data Indices and continued growth in pricing and reference data ▪ Annual subscription value (ASV)(1) +4.5% y/y CC(2) entering 3Q20, up from 4% y/y entering 2Q2
Slide 7: Investments in Technology and Content Driving Growth
INVESTMENTS IN TECHNOLOGY AND CONTENT DRIVING GROWTH ▪ Continued demand for ICE's mission-critical data and delivery-agnostic solutions as customers navigate volatile markets ▪ Increased sales driven by new customers & increased consumption of fixed income pricing, feeds, ESG analytics and regulator
Slide 8: Long-Term Tailwinds Driving Growth Across Energy Markets
LONG-TERM TAILWINDS DRIVING GROWTH ACROSS ENERGY MARKETS ▪ 600+ oil products serving commercial customers demanding additional and more precise hedging tools ▪ Liberalization of natural gas and rise of LNG driving demand for ICE TTF & JKM contracts ▪ Increased demand for environmental products and r
Slide 9: Automating the Mortgage Workflow
AUTOMATING THE MORTGAGE WORKFLOW ▪ Digital solutions becoming essential for mortgage industry participants ▪ ICE Mortgage Services brings digital solutions to the close, post-close and secondary market ▪ Additional tailwinds from strong re-financing trends MERS + Simplifile Capabilities 1H20 +257% 1
Slide 10: Consistent Track Record of Growth
CONSISTENT TRACK RECORD OF GROWTH 1H20 Highlights Record net revenues +15% y/y, CC Record trading & clearing rev +28% y/y (1) $3.88 Record data revenue +4% y/y, CC Adjusted EPS (1) Record adj. op income +19% y/y $3.59 Record adj. EBITDA +18% y/y R 17% AG (1) Record adj. EPS +25% y/y 9C $2.97 - '1 (1
Slide 11: Appendix
APPENDIX Intercontinental Exchan
Slide 12: Average Daily Volume and Rate per Contract (RPC) Trends
AVERAGE DAILY VOLUME AND RATE PER CONTRACT (RPC) TRENDS lots in thousands Energy ADV & RPC ADV RPC ADV Ags ADV & RPC RPC 4,000 1.50 600 2.50 3,500 500 3,000 400 2,500 1.25 2.25 300 2,000 1,500 200 1,000 1.00 100 2.00 2017 2018 2019 YTD 2Q20 2017 2018 2019 YTD 2Q20 ADV RPC ADV RPC ADV Interest Rates
Slide 13: Average Daily Volume and OI Trends
AVERAGE DAILY VOLUME AND OI TRENDS lots in thousands Energy ADV & OI Ags ADV & OI ADV OI ADV OI 4,000 45,000 600 4,400 3,500 500 3,300 3,000 30,000 400 2,500 2,200 2,000 15,000 300 1,500 1,100 200 1,000 0 2017 2018 2019 YTD 100 0 2Q20 2017 2018 2019 YTD 2Q20 ADV OI ADV OI ADV Interest Rates ADV & OI
Slide 14: Data & Listings Supplemental Data
DATA & LISTINGS SUPPLEMENTAL DATA 2Q20 Data Revenue by Region, Annual Subscription Value (ASV) Constant Currency FX Impact in millions 2Q20 2Q19 EMEA APAC 20% 5% ASV(1) $2,057 $1,974 Adjusted for: FX — (5) ASV, CC 2,057 1,969 Americas 75% (1) ASV is defined as the annual value of subscriptions under
Slide 15: 2Q20 GAAP Results
2Q20 GAAP RESULTS INCOME STATEMENT HIGHLIGHTS GAAP GAAP in millions except per share amounts 2Q20 2Q19 % Chg Net revenues $1,395 $1,298 8% Operating Expenses $651 $618 5% Operating Income $744 $680 10% Operating Margin 53% 52% +1pt Net Income attributable to ICE $523 $472 11% Diluted EPS $0.95 $0.84
Slide 16: 2Q20 Balance Sheet
2Q20 BALANCE SHEET in millions 06/30/2020 12/31/2019 CHANGE Assets ▪ $880 million unrestricted cash Unrestricted Cash $880 $841 $39 Other Current Assets 96,555 67,138 29,417 ▪ Total debt of $8.4 billion; Adj. Debt-to- Current Assets 97,435 67,979 29,456 EBITDA(1) of 2.3x PPE (net) 1,510 1,536 (26) ▪
Slide 17: Adjusted Net Income Attributable to ICE and EPS
ADJUSTED NET INCOME ATTRIBUTABLE TO ICE AND EPS Three Months Three Months Six Months Six Months Ended Ended Ended Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Net income attributable to ICE $ 523 $ 472 $ 1,173 $ 956 Add: Amortization of acquisition-related intangibles 71 78 141 155
Slide 18: Adjusted Net Income Attributable to ICE and EPS
ADJUSTED NET INCOME ATTRIBUTABLE TO ICE AND EPS 12 Months 12 Months 12 Months 12 Months 12 Months 12 Months 12 Months Ended Ended Ended Ended Ended Ended Ended in millions except per share amounts 12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 Net income attributable to ICE $1,933 $1
Slide 19: Adjusted Operating Income, Operating Margin & Operating Expense Reconciliation
ADJUSTED OPERATING INCOME, OPERATING MARGIN & OPERATING EXPENSE RECONCILIATION Trading and Clearing Data and Listings Segment Segment Consolidated Six Months Ended Six Months Ended Six Months Ended June 30, June 30, June 30, 2020 2019 2020 2019 2020 2019 Total revenues, less transaction-based expens
Slide 20: Adjusted Operating Income, Operating Margin & Operating Expense Reconciliation
ADJUSTED OPERATING INCOME, OPERATING MARGIN & OPERATING EXPENSE RECONCILIATION Trading and Clearing Data and Listings Segment Segment Consolidated Three Months Ended Three Months Ended Three Months Ended June 30, June 30, June 30, 2020 2019 2020 2019 2020 2019 Total revenues, less transaction-based
Slide 21: Adjusted EBITDA Reconciliation
ADJUSTED EBITDA RECONCILIATION Trailing Twelve Months in millions Ended 6/30/20 Adjusted net income $2,425 Add: Adjusted interest expense(1) 285 Add: Adjusted income tax expense(1) 658 Add: Adjusted depreciation and amortization(1) 335 Adjusted EBITDA from Continuing Ops $3,703 Pro forma EBITDA (pre
Slide 22: Adjusted Effective Tax Rate Reconciliation
ADJUSTED EFFECTIVE TAX RATE RECONCILIATION Three Months Three Months in millions Ended 6/30/20 Ended 6/30/19 Income before income taxes $673 $628 Income tax expense 145 150 Effective tax rate 22 % 24 % Income before income taxes 673 628 Add: Amortization of acquisition-related intangibles 71 78 Add: