Intercontinental Exchange Inc. · NYSE:ICE
Intercontinental Exchange — Barclays Global Financial Services Conference 2019
21 slides from Intercontinental Exchange's conference presentation, Sep 11, 2019
Slide 1: Barclays Financial Services Conference
Barclays Financial Services Conference September 11th, 2019
Slide 2: A Global Market Infrastructure Provider
A Global Market Infrastructure Provider World’s deepest and broadest source of mission-critical derived Data data & analytics critical to A Global Marketplace pre-trade workflows Energy, Ags & Metals Rates & FX Trading Equities Fixed Income & Credit 6 clearing houses across the globe; comprehensive
Slide 3: A Balanced Revenue Mix
A Balanced Revenue Mix TTM Net Revenue(1) $5.1B, +7% y/y Data & Listings (52% of Revenues) 52% Subscription-based recurring revenue Recurring Comprehensive mission critical data & listing services with high retention rates Compounding organic data growth of Listings +6% in 1H19; +5% in 2017 & 2018 9
Slide 4: Trading & Clearing Built on Global Benchmarks
Trading & Clearing Built on Global Benchmarks Exchanges & Clearing Houses in U.S., Canada, U.K. Europe and Singapore across major asset classes Flagship Brent, Gasoil, global natural gas, leading European interest rates complex, MSCI and FX Scaled business with above-peer operating margins Commercia
Slide 5: A Leading Global Energy Ecosystem
A Leading Global Energy Ecosystem BRENT +126 spread NBP Gas contracts 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 Nat
Slide 6: Bringing Efficiencies to the Fixed Income Workflow
Bringing Efficiencies to the Fixed Income Workflow Pre-Trade • 3 million fixed income securities Scenario & priced in real time Risk Analysis • ~$1B in total fixed income revenue across data & trading • Click-to-trade, RFQ and Auction Efficient Execution • Multiple protocols provide flexibility Best
Slide 7: Digital Solutions for the Mortgage Workflow
Digital Solutions for the Mortgage Workflow Less than 1% of mortgages are fully digital and paperless following the close ICE Mortgages Services has an opportunity to bring additional digital solutions to the closing process Mortgage Workflow Process & Application Closing Post-Closing Secondary Unde
Slide 8: Unique Mission-Critical Data & Listings Services
Unique Mission-Critical Data & Listings Services Pricing & Exchange Data Desktops & Listing Analytics & Feeds Connectivity Services Leading provider of Real-time & historical end-of-day & real- pricing data time prices on 3M Global oil, natural fixed income ICE Global Network Global leader in IPO ga
Slide 9: Compounding Growth in Data Services
Compounding Growth in Data Services High Margin Mission Critical Data & Analytics Across Asset Classes Value, CC (1) (ASV in $M) Annual Subscription ASV ICE Data Services Revenue $1,984 +6% 19% $1,876 $2.2B 49% TTM 32% 2Q18 2Q19 Pricing & Analytics Exchange Data & Feeds Desktops & Connectivity (1) A
Slide 10: A Proven Model for Long-Term Growth
A Proven Model for Long-Term Growth ▪ New product development ▪ 52% of total revenue is ▪ Expand range of content and Balanced Recurring recurring distribution solutions & Transaction-based ▪ Transaction business ▪ Strategic M&A and alliances to Revenue Growth supported by leading global leverage ou
Slide 11: Above-Peer Operating Margins
Above-Peer Operating Margins Scalable infrastructure drives high operating margins Trading & Clearing Adj Op Margin Adj. Op Margin 65% 58% 61% 50% (1) (2) ICE Peer Group Data & Listings Adj Op Margin 52% 43% (1) (2)(3) ICE Peer Group (3) ICE(1) Peer Group (1) Adjusted figures represent non-GAAP meas
Slide 12: Rising Capital Return
Rising Capital Return $1,753 Capital Return Philosophy $1,425 Dividend Growth Grow the dividend as the company grows $1,198 $1,092 Double-digit increase on avg. since $944 $991 2013; +15% in 2019 $949 Share Repurchases $693 $660 $780 100% of excess FCF, net of strategic $645 M&A, allocated to share
Slide 13: Consistent Track Record of Growth
Consistent Track Record of Growth 13 Consecutive Years of Adj. EPS Growth (1) 3.59 (1) (1) $2.97 $2.79 (1) $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 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 1H19 (1) Adjusted figures represent non-GAAP measur
Slide 14: Appendix
Appendix
Slide 15: For Additional Information
For Additional Information Investor Relations website: www.ir.theice.com Investor Relations contacts: Warren Gardiner, CFA Vice President, Investor Relations warren.gardiner@theice.com Mary Caroline O'Neal, CPA Manager, Investor Relations marycaroline.oneal@theice.com investors@theice.com INTERCONTI
Slide 16: 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 17: 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 18: 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 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 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 20: 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 INTERCONTINENTAL EXCHAN
Slide 21: About Intercontinental Exchange
About Intercontinental Exchange Intercontinental Exchange (NYSE: ICE) is a Fortune 500 company formed in the year 2000 to modernize markets. ICE serves customers by operating the exchanges, clearing houses and information services they rely upon to invest, trade and manage risk across global financi
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