Slide 1: 2Q19 Earnings Supplement
Intercontinental Exchange Earnings Supplement Second Quarter 2019 Aug 1, 2019 2Q19 Earnings Supplement August 1, 2019
Slide 2: Forward-Looking Statements and Legends
FORWARD-LOOKING STATEMENTS AND LEGENDS 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 ar
Slide 3: ICE 2Q19 Earnings Call Participants
ICE 2Q19 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: 2Q19 Highlights
2Q19 HIGHLIGHTS in millions except per share amounts INCOME STATEMENT Strong operating performance HIGHLIGHTS 2Q19 2Q18 % Chg Net revenue +5% y/y, CC Net Revenues $1,298 $1,246 4% at constant currency 5% Data revenue Trading & Clearing revenue Adj. Op Expenses $540 $503 7% +6% y/y, CC +5% y/y, CC Ad
Slide 5: 2Q19 Trading & Clearing Segment
2Q19 TRADING & CLEARING SEGMENT ▪ 2nd best quarter for energy revenues in company history ▪ 2Q19 record European gas average daily volume (ADV) +45% y/y, global oil products ADV +14% y/y, record ags & metals ADV +4% y/y, MSCI ADV +16% y/y ▪ July open interest (OI) +6% y/y including energy OI +4% y/y
Slide 6: 2Q19 Data & Listings Segment
2Q19 DATA & LISTINGS SEGMENT ▪ Global leader in IPO proceeds in 1H19; $20.9B raised including 75% of U.S. technology IPOs ▪ 2Q19 data revenue +6% y/y, in constant currency driven by strong growth in ICE Data Indices, futures data and ICE Global Network ▪ Annual subscription value(1) +5.4% y/y enteri
Slide 7: The Leading Global Energy Ecosystem
THE LEADING GLOBAL ENERGY ECOSYSTEM BRENT +126 spread contracts NBP Gas NA Basis RBOB Gasoil TTF Gas Market Heating Oil Japan GC Fuel Oil Naptha US Emissions EU Emissions PLATTS JKM WTI DUBAI +107 spread + 34 spread contracts contracts Key Singapore Gasoil ICE Crude Benchmarks Fuel Oil Jet ICE Key N
Slide 8: Innovation to Enhance Growth
INNOVATION TO ENHANCE GROWTH Shift from active to passive, electronification of fixed income market, automation of workflows Pricing and Reference ▪ New fixed income indices; ~$200B ETF AUM benchmarked Data ▪ Analytics: real-time fixed income curves, credit risk tools ▪ ICE Data Vault Fixed Income D
Slide 9: Consistent Track Record of Growth
CONSISTENT TRACK RECORD OF GROWTH 1H19 Highlights Net revenues +5% y/y, CC Adjusted EPS (1) $3.59 Data revenue +6% y/y, CC Adj. EPS +4% y/y (1) $2.97 Free cash flow +13% y/y R 18% $2.79 (1) AG 8C - '1 (1) '06 $2.43 (1) (1) $1.92 $1.87 (1) $1.68 $1.50 $1.38 $1.07 $0.83 $0.85 $0.68 $0.48 2006 2007 200
Slide 10: Appendix
APPENDIX Intercontinental Exchan
Slide 11: Adjusted Expense Guidance
ADJUSTED EXPENSE GUIDANCE Offset by Total FY ~$60M Guidance Beginning revenue $2,190M - $2,210M FY Guidance 1Q19 $2,150M - $2,200M FY Guidance 2Q19 $2,150M - $2,180M FY Core ~$50M Guidance $2,140M - $2,160M Starting 1Q19 1Q19 2Q19 2Q19 FY 2Q-4Q Updated FY FY Guidance Expense FY Guidance Expense Core
Slide 12: Average Daily Volume and RPC Trends
AVERAGE DAILY VOLUME AND RPC TRENDS lots in thousands Energy ADV & RPC Ags ADV & RPC ADV RPC ADV RPC 2,800 1.50 500 2.50 400 2,300 1.25 2.25 300 1,800 1.00 200 2.00 2016 2017 2018 1H19 2016 2017 2018 1H19 ADV RPC ADV RPC ADV Interest Rates ADV & RPC RPC ADV Total Financials ADV & RPC RPC 2,400 0.50
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 2,800 40,000 500 4,400 30,000 3,300 400 2,300 20,000 2,200 300 10,000 1,100 1,800 0 200 0 2016 2017 2018 1H19 2016 2017 2018 1H19 ADV OI ADV OI ADV Interest Rates ADV & OI OI ADV Total Financials ADV & OI
Slide 14: Data & Listings Supplemental Data
DATA & LISTINGS SUPPLEMENTAL DATA 2Q19 Data Revenue by Region, Constant Currency Annual Subscription Value (ASV) FX Impact in millions 2Q19 2Q18 EMEA APAC 19% 4% ASV(1) $1,984 $1,883 Adjusted for: FX — (7) ASV, CC 1,984 1,876 Americas 77% (1) ASV is defined as the annual value of subscriptions under
Slide 15: 2Q19 GAAP Results
2Q19 GAAP RESULTS INCOME STATEMENT HIGHLIGHTS GAAP GAAP in millions except per share amounts 2Q19 2Q18 % Chg Net revenues $1,298 $1,246 4% Operating Expenses $618 $591 4% Operating Income $680 $655 4% Operating Margin 52% 53% (1 pt) Net Income attributable to ICE $472 $455 4% Diluted EPS $0.84 $0.78
Slide 16: 2Q19 Balance Sheet
2Q19 BALANCE SHEET in millions 06/30/2019 12/31/2018 CHANGE Assets ▪ $837 million unrestricted cash Unrestricted Cash $837 $724 $113 Other Current Assets 63,535 65,968 (2,433) ▪ Total debt of $7.8 billion; Adj. Debt-to- Current Assets 64,372 66,692 (2,320) EBITDA(1) of 2.3x PPE (net) 1,525 1,241 284
Slide 17: Adjusted Net Income Attributable to ICE and EPS
ADJUSTED NET INCOME ATTRIBUTABLE TO ICE AND EPS 3 Months 3 Months 6 Months 6 Months in millions except per share amounts Ended 6/30/19 Ended 6/30/18 Ended 6/30/19 Ended 6/30/18 Net income attributable to ICE $472 $455 $956 $919 Add: Interactive Data integration costs — 12 — 24 Add: Amortization of a
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 Ended Ended Ended Ended Ended Ended in millions except per share amounts 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 Net income attributable to ICE $1,988 $2,526 $1,429 $1,274 $981 $
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, 2019 2018 2019 2018 2019 2018 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, 2019 2018 2019 2018 2019 2018 Total revenues, less transaction-based
Slide 21: Adjusted EBITDA Reconciliation
ADJUSTED EBITDA RECONCILIATION Trailing 12 Months in millions Ended 6/30/19 Adjusted net income $2,088 Add: Interest expense 279 Add: Adjusted income tax expense (1) 630 Add: Adjusted depreciation and amortization(1) 315 Adjusted EBITDA from Continuing Ops $3,312 Pro forma EBITDA - Simplifile (pre-a
Slide 22: Adjusted Effective Tax Rate Reconciliation
ADJUSTED EFFECTIVE TAX RATE RECONCILIATION 3 Months 3 Months in millions Ended 6/30/19 Ended 6/30/18 Income before income taxes $628 $611 Income tax expense 150 149 Effective tax rate 24% 24% Income before income taxes $628 $611 Add: Interactive Data integration costs — 12 Add: Amortization of acqui
Slide 23: Free Cash Flow Calculation
FREE CASH FLOW CALCULATION Six months ended Six months ended June 30, 2019 June 30, 2018 Cash flow from operations $1,382 $1,236 Less: Capital expenditures and capitalized software development costs (134) (108) Less: Section 31 fees, net (63) (80) Free cash flow $1,185 $1,048 23