Slide 1: 1Q21 Earnings Supplement
1Q21 Earnings Supplement April 29, 2021
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 First Quarter 2021 Earnings Call Participants
ICE FIRST QUARTER 2021 EARNINGS CALL PARTICIPANTS Jeff Sprecher Ben Jackson Scott Hill Chairman & CEO President Chief Financial Chairman, NYSE Officer Warren Gardiner Lynn Martin Mary Caroline O'Neal Incoming Chief Financial President, Fixed Income & Director, Investor 3 Officer Data Services Relati
Slide 4: 1Q21 ICE Performance
1Q21 ICE PERFORMANCE in millions except per share amounts INCOME STATEMENT Strong 1Q Performance HIGHLIGHTS 1Q21 1Q20 % Chg Net Revenues $1,797 $1,559 15% 1Q21 pro forma net revenues Net Revenues, pro forma $1,797 $1,733 4% +4% y/y Adj. Op Expenses $729 $597 22% Adj. Op Expenses, pro forma $729 $706
Slide 5: 1Q21 Exchanges Performance
1Q21 EXCHANGES PERFORMANCE ▪ 1Q21 exchanges revenue +10% on average over past 2 years ▪ April open interest +13% vs. Dec '20; energy OI +5%; oil OI +10%; environmentals OI +24% ▪ Over 150k contracts traded on IFAD across 49 firms with growing OI over 45k lots ▪ Expect 2Q21 recurring revenues of $315
Slide 6: 1Q21 Fixed Income & Data Services Performance
1Q21 FIXED INCOME & DATA SERVICES PERFORMANCE ▪ Fixed income data & analytics revenue +7% y/y, CC driven by PRD & Indices ▪ Other data and network services revenue +6% y/y, CC driven by ICE Global Network & feeds ▪ ASV +5.1% y/y, CC entering 2Q21; expect 2Q21 recurring revenues of $401 to $406 milli
Slide 7: 1Q21 Mortgage Technology Performance
1Q21 MORTGAGE TECHNOLOGY PERFORMANCE ▪ Analog to digital conversion, accelerating millennial home buying & favorable financing conditions driving strong transaction revenues ▪ Increased customer consumption & new customer adoption driving growth in recurring revenues ▪ Expect 2Q21 recurring revenues
Slide 8: Innovation Driving Transparency and Efficiency
INNOVATION DRIVING TRANSPARENCY AND EFFICIENCY Energy Fixed Income & Data Services Mortgage Technology ■ Murban crude oil added to ■ High-quality end-of-day and ■ Digital solutions create global energy suite with real-time price evaluations efficiencies for nearly 50% of launch of IFAD on March 29 c
Slide 9: Consistent Track Record of Growth
CONSISTENT TRACK RECORD OF GROWTH 1Q21 Highlights Net revenue +15% y/y Pro forma net revenue +4% y/y Adjusted EPS(1) $4.41 Record adj. op income +11% y/y Record adj. EPS +7% y/y $3.79 1Q21 dividend +12% y/y $3.53 17% A GR 0C - '2 $2.93 '06 $2.76 $2.42 $1.93 $1.68 $1.50 $1.38 $1.34 $1.07 $0.83 $0.85
Slide 10: Appendix
APPENDIX 10 [ Ice’
Slide 11: Adjusted Operating Expense Guidance
ADJUSTED OPERATING EXPENSE GUIDANCE Original FY Guidance $2,830 million - $2,880 million Add: Incremental 1Q Bakkt Expense $7 million Add: 2Q Bakkt Expense $35 million Add: Incremental FX $5 million - $10 milllion Updated FY Guidance $2,880 million - $2,930 million Original FY Guidance excl Bakkt $2
Slide 12: ICE Mortgage Technology Revenue Adjustment - Pro Forma
ICE MORTGAGE TECHNOLOGY REVENUE ADJUSTMENT- PRO FORMA Origination technology revenues include those related to our ICE Mortgage Technology network (previously reported in closing solutions revenues) and closing solutions revenues now include registration revenues related to MERS (previously reported
Slide 13: Adjusted Operating Expense
ADJUSTED OPERATING EXPENSE Three Months Ended March 31, Three Months Ended March 31, 2021 2020 GAAP Adjusted GAAP Adjusted Compensation and benefits $ 354 $ 354 $ 278 $ 278 Technology and communication 162 162 131 131 Professional services 44 44 29 29 Rent and occupancy 21 21 21 21 Acquisition-relat
Slide 14: Adjusted Non Operating Income/Expense Reconciliation
ADJUSTED NON OPERATING INCOME/EXPENSE RECONCILIATION in millions 1Q21 4Q20 3Q20 2Q20 1Q20 Other Income / (Expense) OCC equity investment $25 $(13) $49 $18 $17 Euroclear dividends 30 — — — — Investment gains — 55 — — — FX gains / (losses) (6) (3) (3) (3) 4 Accrual for potential legal settlements — (3
Slide 15: Adjusted Effective Tax Rate Reconciliation
ADJUSTED EFFECTIVE TAX RATE RECONCILIATION Three Months Three Months in millions Ended 3/31/2021 Ended 3/31/2020 Income before income taxes $833 $836 Less: Income tax expense 183 178 Effective tax rate 22% 21% Income before income taxes $833 $836 Add: Amortization of acquisition-related intangibles
Slide 16: Free Cash Flow Calculation
FREE CASH FLOW CALCULATION Three months ended Three months ended March 31, 2021 March 31, 2020 Cash flow from operations $734 $520 Less: Capital expenditures and capitalized software development costs (116) (59) Add/(Less): Section 31 fees, net 84 (27) Free cash flow $702 $434 16
Slide 17: Adjusted EBITDA Reconciliation
ADJUSTED EBITDA RECONCILIATION Twelve Months Ended in millions 3/31/2021 Adjusted net income $2,512 Add: Adjusted interest expense(1) 373 Add: Adjusted income tax expense(1) 757 Add: Adjusted depreciation and amortization(1) 362 Adjusted EBITDA from Continuing Ops $4,004 Pro forma EBITDA (pre acquis
Slide 18: ICE Summary Balance Sheet
ICE SUMMARY BALANCE SHEET in millions BALANCE SHEET 03/31/2021 12/31/2020 CHANGE Assets ▪ $562M unrestricted cash Unrestricted Cash $562 $583 $(21) Other Current Assets 88,613 86,636 1,977 ▪ Total debt of $16.2B; Adj. Debt-to- Current Assets 89,175 87,219 1,956 EBITDA(1) of 3.8x PPE (net) 1,731 1,71
Slide 19: Fixed Income & Data Services Supplemental Data
FIXED INCOME & DATA SERVICES SUPPLEMENTAL DATA Annual Subscription Value (ASV) in millions 1Q21 4Q20 3Q20 2Q20 1Q20 ASV(1) $1,580 $1,569 $1,538 $1,503 $1,478 Adjusted for: FX — — 14 24 25 ASV, CC $1,580 $1,569 $1,552 $1,527 $1,503 (1) ASV is defined as the annual value of subscriptions under contrac
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 3,500 1.50 500 2.50 3,000 400 1.25 2.25 2,500 300 2,000 1.00 200 2.00 2018 2019 2020 1Q21 2018 2019 2020 1Q21 ADV RPC ADV RPC ADV Interest Rates ADV & RPC RPC ADV Total Financials ADV & RPC RPC 2,400
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 3,500 45,000 500 4,400 3,000 3,300 30,000 400 2,200 2,500 15,000 300 1,100 2,000 0 200 0 2018 2019 2020 1Q21 2018 2019 2020 1Q21 ADV OI ADV OI ADV Interest Rates ADV & OI OI ADV Total Financials ADV & OI
Slide 22: GAAP Results
GAAP RESULTS INCOME STATEMENT HIGHLIGHTS in millions except per share amounts GAAP 1Q21 GAAP 1Q20 % Chg Net revenues $1,797 $1,559 15% Operating Expenses $905 $677 34% Operating Income $892 $882 1% Operating Margin 50% 57% (7 pts) Net Income attributable to ICE $646 $650 (1)% Diluted EPS $1.14 $1.17
Slide 23: Adjusted Operating Income, Operating Margin & Operating Expense Reconciliation
ADJUSTED OPERATING INCOME, OPERATING MARGIN & OPERATING EXPENSE RECONCILIATION Fixed Income and Data Services Mortgage Technology Exchanges Segment Segment Segment Consolidated Three Months Ended Three Months Ended Three Months Ended Three Months Ended March 31, March 31, March 31, March 31, 2021 20
Slide 24: Adjusted Net Income and EPS
ADJUSTED NET INCOME AND EPS Three Months Ended Three Months Ended March 31, 2021 March 31, 2020 Net income attributable to ICE $ 646 $ 650 Add: Amortization of acquisition-related intangibles 158 70 Add: Transaction and integration costs and acquisition-related success fees 18 10 Less: Net income fr
Slide 25: Adjusted Net Income and EPS
ADJUSTED NET INCOME AND EPS Twelve Months Twelve Months Ended Ended 12/31/2020 12/31/2019 Net income attributable to ICE common stockholders $ 2,089 $ 1,933 Add: Amortization of acquisition-related intangibles 388 309 Add: Transaction and integration costs and acquisition-related success fees 101 —
Slide 26: Adjusted Net Income and EPS
ADJUSTED NET INCOME AND EPS Twelve Twelve Twelve Twelve Twelve Twelve Months Ended Months Ended Months Ended Months Ended Months Ended Months 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 $9