Slide 1: Intercontinental Exchange
Intercontinental Exchange «Ta ie NYSE
Slide 2: Forward-Looking Statement and Legends
Forward-Looking Statement 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 are
Slide 3: ICE Third Quarter 2016 Earnings Call
ICE Third Quarter 2016 Earnings Call Participants: Jeff Sprecher Chuck Vice Scott Hill Chairman & CEO President & COO Chief Financial Officer Chairman, NYSE Investor Relations: Kelly Loeffler, CFA SVP, Corporate Comm., Marketing & Investor Relations kelly.loeffler@theice.com Dan Aldridge III Senior
Slide 4: Year-to-Date September 2016 Highlights
Year-to-Date September 2016 Highlights ▪ Revenue of $3.4B(1), +4% y/y(2), accelerated synergies and margin expansion drove double digit earnings growth ▪ $1.5B op cash flow, $307MM in dividends and leverage down to 2.3x adj. debt to EBITDA(3) (1) (2) Trading & Clearing Rev Data & Listings Rev $1.6B
Slide 5: Third Quarter 2016 Performance
Third Quarter 2016 Performance INCOME STATEMENT HIGHLIGHTS Adj. 3Q15 Pro- (in millions except per share amounts and percentages) 3Q16 forma(1) % Chg Net revenues $1,078 $1,073 - Adj. Operating Expenses $484 $500 (3)% Adj. Operating Income $594 $573 4% Adj. Operating Margin 55% 53% +2pts Adj. Tax Rat
Slide 6: Third Quarter 2016 Revenue
Third Quarter 2016 Revenue ▪ Data & Listings revenue +5% y/y(1); including pricing & analytics +3%(1), adjusted for impact of Pound devaluation and 3Q15 billing true-up ▪ Trading & Clearing revenue -4% y/y; energy revenues +4%, and interest rate revenues -15% despite ADV +13%, due to currency impact
Slide 7: Third Quarter 2016 Adjusted Expense
Third Quarter 2016 Adjusted Expense ▪ Adj. expense -3% y/y(1); adj. margin +2 pts y/y(1) to 55% ▪ Expense discipline and synergy acceleration; increased 2016 expense synergies from $75MM at beginning of year to ~$115MM, including ~$65MM related to Interactive Data acquisition ▪ Adj. op expense guida
Slide 8: Strong Cash Flow & Debt Reduction
Strong Cash Flow & Debt Reduction ▪ Generated $1.5 billion in operating cash flow YTD ▪ YTD dividends of ~$307MM; +28% y/y ▪ Restarted share repurchases in Oct. '16 under existing $1B authorization ▪ Approved 5-for-1 stock split; with a record date of 10/27/16 and a distribution date of 11/3/16 Oper
Slide 9: Product Diversity Enables Consistent Growth
Product Diversity Enables Consistent Growth • Strategic approach delivering growth amid dynamic regulatory, economic and volatility environments • Consistent evolution of model by focusing on secular growth, including clearing and data ICE Consolidated Net Revenues (1) $3.4B +36% y/y 3,200 2,800 2,4
Slide 10: Virtuous Cycle Driving Consistent Earnings Growth
Virtuous Cycle Driving Consistent Earnings Growth ü Data, trading and risk management infrastructure brings unparalled efficiency as an enterprise solution ü Secular trends driving demand for data include passive investing, market fragmentation, automation, clearing, reporting, requirements for inde
Slide 11: Diverse Global Portfolio Driving Growth in ADV & OI
Diverse Global Portfolio Driving Growth in ADV & OI All figures in thousands Crude Oil ADV & OI ADV Ags ADV & OI ADV OI OI 1,200 6,000 450 4,000 400 1,000 5,000 350 3,250 800 4,000 300 600 3,000 250 2,500 200 400 2,000 150 200 1,000 100 1,750 50 0 0 63% 0 1,000 2012 2013 2014 2015 YTD 2016 2012 2013
Slide 12: Consistent Track Record of Growth Continues
Consistent Track Record of Growth Continues ▪ Disciplined integrator with consistent operational execution; delivering on strategic growth to drive excess Return On Invested Capital (ROIC) and double-digit earnings growth over the long term ▪ Rising cash flow, declining leverage, growing dividends,
Slide 13: Appendix
APPENDIX INTINENTAL EXCHANGE 13
Slide 14: Third Quarter and Year-to-Date Sep. 2016 GAAP Results
Third Quarter and Year-to-Date Sep. 2016 GAAP Results INCOME STATEMENT HIGHLIGHTS GAAP GAAP GAAP YTD GAAP YTD (in millions except per share amounts) 3Q16 3Q15 % Chg Sep. '16 Sep. '15 % Chg Net revenues $1,078 $816 32% $3,361 $2,463 36% Operating Expenses $604 $376 60% $1,752 $1,131 55% Operating Inc
Slide 15: ICE Summary Balance Sheet
ICE Summary Balance Sheet In millions BALANCE SHEET 09/30/2016 12/31/2015 CHANGE Assets ▪ $458MM unrestricted cash Unrestricted Cash $458 $627 $(169) Other Current Assets 51,386 52,686 (1,300) ▪ Total debt of $6.3B; Adj. Debt-to- Current Assets 51,844 53,313 (1,469) EBITDA(1) of 2.3x PPE (net) 1,080
Slide 16: Adjusted Net Income from Continuing Ops and EPS from Continuing Ops
Adjusted Net Income from Continuing Ops and EPS from Continuing Ops In millions (except per share amounts) 3 Months 3 Months 9 Months 9 Months Ended 9/30/16 Ended 9/30/15 Ended 9/30/16 Ended 9/30/15 Income from continuing operations $350 $310 $1,090 $922 Add: NYSE and Interactive Data transaction an
Slide 17: Adjusted Net Income from Continuing Ops and EPS from Continuing Ops
Adjusted Net Income from Continuing Ops and EPS from Continuing Ops In millions (except per share amounts) 12 Months 12 Months 12 Months Ended 12/31/15 Ended 12/31/14 Ended 12/31/13 Income from continuing operations $1,295 $1,005 $320 Add: NYSE and Interactive Data transaction and integration costs
Slide 18: Adjusted Operating Income, Operating Margin & Operating Expense Reconciliation
Adjusted Operating Income, Operating Margin & Operating Expense Reconciliation In millions 3 Months Ended 3 Months Ended 9 Months Ended 9 Months Ended 9/30/16 9/30/15 9/30/16 9/30/15 Total revenues, less transaction-based expenses $1,078 $816 $3,361 $2,463 Total operating expenses 604 376 1,752 1,13
Slide 19: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation In millions Trailing 12 Months Ended 9/30/16 Adjusted net income $1,606 Add: Income tax expense 427 Add: Income tax expense adjustment on Non-GAAP Items 230 Less: Other income, net(1) (27) Add: Interest expense(1) 159 Add: Depreciation and amortization(1) 264 Adjusted
Slide 20: Adjusted Effective Tax Rate Reconciliation
Adjusted Effective Tax Rate Reconciliation In millions 3 Months 3 Months Ended 9/30/16 Ended 9/30/15 Income before income tax expense $443 $423 Less: Income tax expense 93 113 Net Income $350 $310 Effective tax rate 21% 27% Income before income tax expense $443 $423 Add: NYSE and Interactive Data tr