Slide 1: First Quarter 2016 Earnings Supplement
First Quarter 2016 Earnings Supplement May 4, 2016
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 First Quarter 2016 Participants
ICE First Quarter 2016 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 Isabel Janci Senior Director, Investor
Slide 4: First Quarter 2016 Highlights
First Quarter 2016 Highlights ▪ 1Q16 adj. EPS +20% to $3.68 as reported ▪ 1Q16 dividends of $102MM, +14% vs. 4Q15; leverage reduced to 2.5x(1) Trading & Clearing Segment Rev (2) Data & Listings Segment Rev +4% $574MM $580MM +5% 525 560 450 480 $ (Millions) 400 $ (Millions) 375 300 320 225 240 150 16
Slide 5: First Quarter 2016 Financial Performance
First Quarter 2016 Financial Performance INCOME STATEMENT HIGHLIGHTS 1Q15 (in millions except per share amounts) 1Q16 Pro-forma(1) % Chg Net revenues $1,154 $1,100 5% Adj. Operating Expenses $476 $506 (6)% Adj. Operating Income $678 $594 14% Adj. Operating Margin 59% 54% +5 pts Adj. Net Income attri
Slide 6: 1Q16 Revenue Detail
1Q16 Revenue Detail ▪ Revenue +5% y/y(2) on a pro forma basis with equal contributions from each segment ▪ Growth across all business lines: commodities, financials, data and listings ▪ Data revenue expected to grow 6-7% in 2016 vs 2015 pro-forma revenue 1Q15 % 1Q16 Consolidated Revenue $ (in millio
Slide 7: 1Q16 Adj. Expense Detail
1Q16 Adj. Expense Detail ▪ 6% y/y(1) decrease in adjusted expense; pro-forma margin +5 pts y/y to 59% ▪ Trading & clearing segment adj. expense -3% y/y; Data & listings segment adj. pro forma expense -8% y/y ▪ Expense discipline and synergy acceleration due to execution and integration; now expect t
Slide 8: Generating Cash & Reducing Leverage
Generating Cash & Reducing Leverage ▪ Op. cash flow of ~$600MM, +28% y/y driven by revenue growth and addition of Interactive Data ▪ ~$500MM in unrestricted cash & short-term investments at 3/31/16 ▪ Significant deleveraging; 2.5x adj. debt to EBITDA(1) in 1Q16 with repayment of >$500MM in debt ▪ Pa
Slide 9: Global Data Services Business
Global Data Services Business Strong growth driven by diverse product offerings to meet needs of global customers 1Q Data Revenue Pricing & Analytics +6% y/y(1) $477MM ▪ Independent evaluated pricing services, reference data and 500 +6% y/y $450MM (1) valuations across fixed income markets ▪ Expandi
Slide 10: Global Commodities and Financial Benchmarks
Global Commodities and Financial Benchmarks ▪ Solid growth in volume, OI and rev: 1Q16 commodities rev +5% y/y, financial futures rev +5% y/y ▪ 1Q16 product revenue y/y: ICE Brent +11%, sugar +19%, Euribor +34% & equity indices +21% ▪ Demand for hedging, clearing and risk management amid price volat
Slide 11: 2016 Strategic Growth Opportunities
2016 Strategic Growth Opportunities Drivers include organic and acquired growth, secular trends and regulatory solutions Meet rising demand for a diversity of market data services ▪ Strong organic growth in data of 6%(1) y/y pro-forma; solid contribution across products ▪ Demand driven by risk manag
Slide 12: Record Quarterly EPS Extends on Track Record
Record Quarterly EPS Extends on Track Record ▪ EPS(1) of $3.68, +20% y/y ▪ Increased cash flow, reduced leverage and increased dividend ▪ Disciplined integrator with consistent strategic and operational execution $12.15 $9.63 0% R2 AG 5C $8.38 - '1 '06 $7.52 $6.90 $5.35 $4.17 $4.27 $3.68 +20% y/y $3
Slide 13: Appendix
APPENDIX INTINENTAL EXCHANGE 13
Slide 14: ICE Summary Balance Sheet
ICE Summary Balance Sheet In millions BALANCE SHEET 03/31/2016 12/31/2015 CHANGE Assets ▪ $493MM unrestricted cash and short- Unrestricted Cash & ST Inv $493 $656 $(163) term investments Other Current Assets 54,061 52,657 1,404 Current Assets 54,554 53,313 1,241 ▪ Total debt of $6.8B; Adj. Debt-to-
Slide 15: 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 Month 12 Month 12 Month 3 Months 3 Months Ended Ended Ended Ended 3/31/16 Ended 3/31/15 12/31/15 12/31/14 12/31/13 Income from continuing operations $377 $323 $1,295 $1,005 $320 Add: NYSE an
Slide 16: Adjusted Operating Income, Operating Margin & Operating Expense Reconciliation
Adjusted Operating Income, Operating Margin & Operating Expense Reconciliation In millions 3 Months Ended 3 Months Ended 3/31/16 3/31/15 Total revenues, less transaction-based expenses $1,154 $850 Total operating expenses 570 388 Less: NYSE and Interactive Data transaction and integration costs 17 1
Slide 17: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation In millions Trailing 12 Months Ended 3/31/16 Adjusted net income $1,456 Add: Income tax expense 403 Add: Income tax expense adjustment on Non-GAAP Items 157 Less: Other income, net(1) (14) Add: Interest expense(1) 115 Add: Depreciation and amortization(1) 244 Adjusted
Slide 18: Adjusted Effective Tax Rate Reconciliation
Adjusted Effective Tax Rate Reconciliation In millions 3 Months 3 Months Ended 3/31/16 Ended 3/31/15 Income before income tax expense $540 $441 Less: Income tax expense (163) (118) Net Income $377 $323 Effective tax rate 30% 27% Income before income tax expense $540 $441 Add: NYSE and Interactive Da