Intercontinental Exchange Inc. · NYSE:ICE

Intercontinental Exchange — Q4 2021 Earnings Presentation

26 slides from Intercontinental Exchange's earnings presentation, Feb 3, 2022

  1. Slide 1: 4Q21 Earnings Supplement

    4Q21 Earnings Supplement February 3, 2022

  2. 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

  3. Slide 3: ICE Fourth Quarter 2021 Earnings Call Participants

    ICE Fourth Quarter 2021 Earnings Call Participants Jeff Sprecher Ben Jackson Warren Gardiner Lynn Martin Mary Caroline O'Neal Katia Gonzalez Chair & CEO President Chief Financial Officer President, NYSE Director, Investor Relations Analyst, Investor Relations Chair, Fixed Income & Data Services 3

  4. Slide 4: 4Q21 ICE Performance

    4Q21 ICE Performance in millions except per share amounts Income statement highlights 4Q21 4Q20 % Chg +10 % Total recurring revenue, CC Revenues, net(1) $1,840 $1,671 10% +14 % Recurring Revenues(1) 906 826 10% Transaction Revenues, net(1) 934 845 11% Adj. Op Income, CC Adj. Op Expenses(1) $749 $712

  5. Slide 5: 4Q21 Exchanges Performance

    4Q21 Exchanges Performance in millions Const Global natural gas + +36 % Revenue, net 4Q21 4Q20 % Chg Curr Environmentals Energy $336 $262 28% 29% revenue, CC Ags 51 48 7% 7% Financials 113 82 37% 35% Cash Equities & Equity Options, net 89 89 2% 2% +71 % OTC & Other 87 77 13% 14% Interest rate Data &

  6. Slide 6: 4Q21 Fixed Income & Data Services Performance

    4Q21 Fixed Income & Data Services Performance in millions Revenue 4Q21 4Q20 % Chg Const Curr +5.5 % Annual subscription value (ASV), CC Fixed Income Execution $13 $14 (12)% (12)% CDS Clearing 48 42 14% 14% Fixed Income Data & Analytics 278 262 6% 6% Double- Index revenue Other Data & Network Service

  7. Slide 7: 4Q21 Mortgage Technology Performance

    4Q21 Mortgage Technology Performance in millions Revenue 4Q21 4Q20 % Chg +26 % Recurring revenue Origination Tech $231 $249 (7)% Closing Solutions 83 73 15% ~40 % Data & Analytics 18 17 6% Mix of recurring Other 14 11 23% revenue Total Revenue $346 $350 (1)% Recurring Revenue 149 119 26% Transaction

  8. Slide 8: 2021 Performance & 2022 Guidance

    2021 Performance & 2022 Guidance Revenue in millions except per share amounts ▪ FY2022 total recurring revenues $3.68 - $3.75 billion ▪ Includes est. ~$30 million of headwinds related to FX, Income statement highlights 2021 2020 % Chg 2020 pro forma except EPS, tax rate and cash metrics LIBOR & Euro

  9. Slide 9: Secular Tailwinds Driving Growth Across Asset Classes

    Secular Tailwinds Driving Growth Across Asset Classes Secular Tailwinds Growth Across ICE Platform ICE ’21 Revenue • Mortgage recurring revenue +31% y/y pro forma in 2021 $1.4Bn Mortgage • Analog to digital conversion across the • Connectivity to ~85% of U.S. mortgages drives cross-sell workflow • E

  10. Slide 10: Consistent Track Record of Growth

    Consistent Track Record of Growth 2021 Highlights Net revenues +18% y/y, CC $5.15 Pro forma net revenues +7% y/y, CC Pro forma recurring revenues +10% y/y $4.41 Adj. op income +17% y/y, CC Adj. EPS +17% y/y $3.79 Free Cash Flow +17 y/y $3.53 $2.93 $2.76 $2.42 $1.93 $1.68 $1.50 $1.38 $1.07 $0.83 $0.8

  11. Slide 11: Appendix

    Appendix

  12. Slide 12: Adjusted Operating Expense Guidance

    Adjusted Operating Expense Guidance in millions 2021 Adj. OpEx $2,977 Less: 2021 Bakkt Adj. OpEx(1) (105) 2021 Adj. OpEx exc. Bakkt $2,872 Add: 2022 Spend Compensation, net of synergies & performance award reset $25 - $35 Tied to revenue $25 - $35 Tech & Ops investments $40 - $60 D&A increase at IMT

  13. Slide 13: Adjusted Operating Expense

    Adjusted Operating Expense Three Months Ended Three Months Ended Twelve Months Ended Twelve Months Ended in millions December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 GAAP Adjusted GAAP Adjusted GAAP Adjusted GAAP Adjusted Compensation and benefits $ 369 $ 369 $ 339 $ 339 $ 1,4

  14. Slide 14: Adjusted Non Operating Income/Expense Reconciliation

    Adjusted Non Operating Income/Expense Reconciliation in millions 4Q21 3Q21 2Q21 1Q21 4Q20 Other Income / (Expense), net $1,330 $54 $1,239 $48 $5 Less: Gain on deconsolidation of Bakkt (1,419) — — — — Less: Gain on value of Euroclear equity investment — (34) — — (35) Less: Gain on sale of BIDS equity

  15. Slide 15: Adjusted Effective Tax Rate Reconciliation

    Adjusted Effective Tax Rate Reconciliation Three Months Three Months Twelve Months Twelve Months in millions Ended 12/31/2021 Ended 12/31/2020 Ended 12/31/2021 Ended 12/31/2020 Income before income taxes $2,109 $674 $5,698 $2,766 Income tax expense 580 146 1,629 658 Effective tax rate 28% 22% 29% 24

  16. Slide 16: Free Cash Flow Calculation

    Free Cash Flow Calculation Twelve Months Ended Twelve Months Ended in millions 12/31/2021 12/31/2020 Cash flow from operations $3,123 $2,881 Less: Capital expenditures and capitalized software development costs (452) (410) Add/(Less): Section 31 fees, net 150 (69) Free cash flow $2,821 $2,402 16

  17. Slide 17: Adjusted EBITDA Reconciliation

    Adjusted EBITDA Reconciliation Twelve Months Ended in millions 12/31/2021 Adjusted net income(1) $2,910 Add: Adjusted interest expense(1) 419 Add: Adjusted income tax expense(1) 872 Add: Adjusted depreciation and amortization(1) 387 Adjusted EBITDA from Continuing Ops $4,588 Debt, as reported $13,91

  18. Slide 18: ICE Summary Balance Sheet

    ICE Summary Balance Sheet in millions BALANCE SHEET 12/31/2021 12/31/2020 CHANGE Assets Unrestricted Cash $607 $583 $24 ▪ $607M unrestricted cash Other Current Assets 153,693 86,636 67,057 ▪ Total debt of 13.9B; Adj. Debt-to- Current Assets 154,300 87,219 67,081 EBITDA(1) of 3.0x PPE (net) 1,699 1,7

  19. Slide 19: Fixed Income & Data Supplemental Data

    Fixed Income & Data Supplemental Data Annual Subscription Value (ASV) in millions 4Q21 3Q21 2Q21 1Q21 4Q20 ASV(1) $1,646 $1,624 $1,602 $1,580 $1,569 Adjusted for: FX — (1) (7) (6) (9) ASV, CC $1,646 $1,623 $1,595 $1,574 $1,560 (1) ASV is defined as the annual value of subscriptions under contract fo

  20. Slide 20: 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 ADV RPC ADV RPC Interest Rates ADV & RPC Total Financials ADV & RPC RPC ADV RPC ADV RPC ADV RPC 20

  21. Slide 21: 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 ADV OI ADV OI Interest Rates ADV & OI OI ADV Total Financials ADV & OI OI ADV OI ADV OI 21

  22. Slide 22: GAAP Results

    GAAP Results INCOME STATEMENT HIGHLIGHTS GAAP GAAP GAAP GAAP in millions except per share amounts 4Q21 4Q20 % Chg 2021 2020 % Chg Net revenues $1,840 $1,671 10% $7,146 $6,036 18% Operating Expenses $960 $891 8% $3,697 $3,003 23% Operating Income $880 $780 13% $3,449 $3,033 14% Operating Margin 48% 4

  23. Slide 23: Adjusted Operating Income, Operating Margin & Operating Expense Reconciliation

    Adjusted Operating Income, Operating Margin & Operating Expense Reconciliation Fixed Income and Mortgage Data Services Technology in millions Exchanges Segment Segment Segment Consolidated Year Ended Year Ended Year Ended Year Ended December 31, December 31, December 31, December 31, 2021 2020 2021

  24. Slide 24: Adjusted Operating Income, Operating Margin & Operating Expense Reconciliation

    Adjusted Operating Income, Operating Margin & Operating Expense Reconciliation Fixed Income and Data Mortgage Technology in millions Exchanges Segment Services Segment Segment Consolidated Three Months Ended Three Months Ended Three Months Ended Three Months Ended December 31, December 31, December

  25. Slide 25: Adjusted Net Income & EPS

    Adjusted Net Income & EPS Three Months Three Months Twelve Months Twelve Months Ended Ended Ended Ended in millions 12/31/2021 12/31/2020 12/31/2021 12/31/2020 Net income attributable to ICE common stockholders $ 1,527 $ 526 $ 4,058 $ 2,089 Add: Amortization of acquisition-related intangibles 153 15

  26. Slide 26: Adjusted Net Income & EPS

    Adjusted Net Income & EPS Twelve Months Twelve Months Twelve Months Twelve Months Twelve Months Twelve Months Twelve Months in millions except per share amounts Ended 12/31/19 Ended 12/31/18 Ended 12/31/17 Ended 12/31/16 Ended 12/31/15 Ended 12/31/14 Ended 12/31/13 Net income attributable to ICE $1,

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