Intercontinental Exchange Inc. · NYSE:ICE
Intercontinental Exchange — Q1 2019 Earnings Presentation
21 slides from Intercontinental Exchange's earnings presentation, May 2, 2019
Slide 1: 1Q19 Earnings Supplement
Intercontinental Exchange Earnings Supplement First Quarter 2019 May 2, 2019 1Q19 Earnings Supplement May 2, 2019
Slide 2: Forward-Looking Statements and Legends
FORWARD-LOOKING STATEMENTS 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 ar
Slide 3: ICE 1Q19 Earnings Call Participants
ICE 1Q19 EARNINGS CALL PARTICIPANTS Management: Jeff Sprecher Ben Jackson Scott Hill Chairman & CEO President Chief Financial Officer Chairman, NYSE Investor Relations: Warren Gardiner, CFA Vice President, Investor Relations warren.gardiner@theice.com Mary Caroline O'Neal, CPA Manager, Investor Rela
Slide 4: 1Q19 Highlights
1Q19 HIGHLIGHTS in millions except per share amounts INCOME STATEMENT Solid operating performance HIGHLIGHTS 1Q19 1Q18 % Chg Net Revenues $1,270 $1,225 4% Net revenue +5% y/y, CC at constant currency 5% Adj. Op Expenses $528 $494 7% Data revenue Trading & Clearing revenue Adj. Op Income $742 $731 2%
Slide 5: 1Q19 Trading & Clearing Segment
1Q19 TRADING & CLEARING SEGMENT ▪ 1Q19 European gas average daily volume (ADV) +42% y/y, emissions ADV +35% y/y, MSCI ADV +9% y/y ▪ 1Q19 blended rate-per-contract (RPC) +6% y/y ▪ April OI +4% y/y including interest rate OI +11% y/y, European gas OI +39% y/y, emissions OI +11% y/y ▪ YTD April '19 Eur
Slide 6: 1Q19 Data & Listings Segment
1Q19 DATA & LISTINGS SEGMENT ▪ 1Q19 data revenue +6% y/y, in constant currency ▪ 2Q19 data revenue expected to be $550M - $555M ▪ Annual subscription value(1) +6% y/y entering 2Q19 ▪ The NYSE raised $2.6B of IPO proceeds in 1Q19 Const Annual Subscription Value in millions 1Q19 1Q18 % Chg Curr Revenu
Slide 7: A Diverse and Balanced Business Model
A DIVERSE AND BALANCED BUSINESS MODEL Fixed Income Commodities Data and execution services across Suite of data and execution global commodities including oil, services facilitating the automation natural gas and agricultural of fixed income workflows. products. Mortgages Financial Futures Digital s
Slide 8: Enhancing Mortgage Workflows
ENHANCING MORTGAGE WORKFLOWS ▪ Registered more eNotes in 1Q19 than full-year 2018; eNotes represent <1% of outstanding mortgages ▪ Simplifile provides an integrated suite of digital solutions that help streamline the real estate transaction process ▪ Operates a broad network connecting participants
Slide 9: Consistent Track Record of Growth
CONSISTENT TRACK RECORD OF GROWTH Adjusted EPS (1) $3.59 (1) $2.97 R 18% $2.79 (1) AG 8C - '1 (1) '06 $2.43 (1) $1.92 (1) $1.68 $1.50 $1.38 $1.07 (1) $0.85 $0.92 $0.83 $0.68 $0.48 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 1Q19 (1) Adjusted figures represent non-GAAP measures.
Slide 10: Appendix
APPENDIX Intercontinental Exchan
Slide 11: 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 2,800 1.50 450 2.50 400 2,300 1.25 350 2.25 300 1,800 1.00 250 2.00 2016 2017 2018 1Q19 2016 2017 2018 1Q19 ADV RPC ADV RPC ADV Interest Rates ADV & RPC RPC ADV Total Financials ADV & RPC RPC 2,400 0
Slide 12: 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 2,800 40,000 450 4,400 30,000 400 3,300 2,300 20,000 350 2,200 10,000 300 1,100 1,800 0 250 0 2016 2017 2018 1Q19 2016 2017 2018 1Q19 ADV OI ADV OI ADV Interest Rates ADV & OI OI ADV Total Financials ADV
Slide 13: Data & Listings Supplemental Data
DATA & LISTINGS SUPPLEMENTAL DATA 1Q19 Data Revenue by Region, Constant Currency Annual Subscription Value (ASV) FX Impact in millions 1Q19 1Q18 EMEA APAC 19% 4% ASV(1) $1,979 $1,875 Adjusted for: FX — (15) ASV, CC 1,979 1,860 Americas 77% (1) ASV is defined as the annual value of subscriptions unde
Slide 14: 1Q19 GAAP Results
1Q19 GAAP RESULTS INCOME STATEMENT HIGHLIGHTS GAAP GAAP in millions except per share amounts 1Q19 1Q18 % Chg Net revenues $1,270 $1,225 4% Operating Expenses $605 $575 5% Operating Income $665 $650 2% Operating Margin 52% 53% (1 pt) Net Income attributable to ICE $484 $464 4% Diluted EPS $0.85 $0.79
Slide 15: 1Q19 Balance Sheet
1Q19 BALANCE SHEET in millions 03/31/2019 12/31/2018 CHANGE Assets ▪ $653M unrestricted cash Unrestricted Cash $653 $724 $(71) Other Current Assets 66,832 65,968 864 ▪ Total debt of $7.5B; Adj. Debt-to- Current Assets 67,485 66,692 793 EBITDA(1) of 2.3x PPE (net) 1,538 1,241 297 ▪ $65M 1Q 2019 capex
Slide 16: Adjusted Net Income Attributable to ICE and EPS
ADJUSTED NET INCOME ATTRIBUTABLE TO ICE AND EPS 3 Months 3 Months in millions except per share amounts Ended 3/31/19 Ended 3/31/18 Net income attributable to ICE $484 $464 Add: Interactive Data integration costs — 12 Add: Amortization of acquisition-related intangibles 77 69 Add: Adjustment to reduc
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 Three Months Ended Three Months Ended Three Months Ended March 31, March 31, March 31, 2019 2018 2019 2018 2019 2018 Total revenues, less transaction-bas
Slide 19: Adjusted EBITDA Reconciliation
ADJUSTED EBITDA RECONCILIATION Trailing 12 Months in millions Ended 3/31/19 Adjusted net income $2,079 Add: Interest expense 263 Add: Adjusted income tax expense (1) 631 Add: Adjusted depreciation and amortization(1) 307 Adjusted EBITDA from Continuing Ops $3,280 Adjusted EBITDA - CHX & TMC (pre acq
Slide 20: Adjusted Effective Tax Rate Reconciliation
ADJUSTED EFFECTIVE TAX RATE RECONCILIATION 3 Months 3 Months in millions Ended 3/31/19 Ended 3/31/18 Income before income taxes $626 $617 Income tax expense 134 143 Effective tax rate 21% 23% Income before income taxes $626 $617 Add: Interactive Data integration costs — 12 Add: Amortization of acqui
Slide 21: Free Cash Flow Calculation
FREE CASH FLOW CALCULATION Three months ended Three months ended March 31, 2019 March 31, 2018 Cash flow from operations $654 $573 Less: Capital expenditures and capitalized software development costs (65) (51) Add: Section 31 fees, net 35 8 Free cash flow $624 $530 21
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