Slide 1: 3Q19 Earnings Supplement
Intercontinental Exchange Earnings Supplement Third Quarter 2019 Oct 31, 2019 3Q19 Earnings Supplement October 31, 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 3Q19 Earnings Call Participants
ICE 3Q19 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: 3Q19 Highlights
3Q19 HIGHLIGHTS in millions except per share amounts INCOME STATEMENT Record operating performance HIGHLIGHTS 3Q19 3Q18 % Chg Net revenue +12% y/y, CC Net Revenues $1,336 $1,200 11% at constant currency 12% Energy rev Data revenue Adj. Op Expenses $551 $521 6% +19% y/y +5% y/y, CC Financials rev Adj
Slide 5: 3Q19 Trading & Clearing Segment
3Q19 TRADING & CLEARING SEGMENT ▪ Record 3Q19 energy revenue +19% y/y driven by record European natural gas ADV +63% y/y, Brent ADV +15% y/y and other crude & refined products ADV +24% y/y ▪ 3Q19 Euribor ADV +18% y/y, Sterling ADV +11% y/y, MSCI ADV +24% y/y ▪ October energy open interest (OI) +8% v
Slide 6: 3Q19 Data & Listings Segment
3Q19 DATA & LISTINGS SEGMENT ▪ 3Q19 data revenue +5% y/y, in constant currency driven by strong growth in pricing and reference data, ICE Data Indices, futures data and ICE Global Network ▪ Annual subscription value(1) +5% y/y entering 4Q19, +6% y/y, CC(2); P&A ASV +5% y/y, CC ▪ The NYSE listed 46 I
Slide 7: A Diverse Platform Built for Growth
A DIVERSE PLATFORM BUILT FOR GROWTH Global market expertise... ...applied to new products & asset classes Global commodity markets ▪ Interest rates: Successfully transitioned the U.S. ▪ 600+ global oil products and critical data and MOVE index; suite of MOVE indices will be analytics providing our c
Slide 8: Consistent Track Record of Growth
CONSISTENT TRACK RECORD OF GROWTH YTD 3Q19 Highlights Record net revenues +6% y/y Record data revenue +5% y/y Adjusted EPS (1) $3.59 Record adj. op income +6% y/y Record adj. EBITDA +8% y/y (1) (1) Record adj. EPS +11% y/y 8% $2.97 $2.93 1 (1) GR $2.79 Record free cash flow +3% y/y 8 CA - '1 (1) '06
Slide 9: Appendix
APPENDIX Intercontinental Exchan 9
Slide 10: 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 2,900 1.50 500 2.50 400 2,400 1.25 2.25 300 1,900 1.00 200 2.00 2016 2017 2018 YTD '19 2016 2017 2018 YTD '19 ADV RPC ADV RPC ADV Interest Rates ADV & RPC RPC ADV Total Financials ADV & RPC RPC 2,400
Slide 11: 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 40,000 500 4,400 30,000 3,300 400 2,300 20,000 2,200 300 10,000 1,100 1,800 0 200 0 2016 2017 2018 YTD '19 2016 2017 2018 YTD '19 ADV OI ADV OI ADV Interest Rates ADV & OI OI ADV Total Financials AD
Slide 12: Data & Listings Supplemental Data
DATA & LISTINGS SUPPLEMENTAL DATA 3Q19 Data Revenue by Region, Constant Currency Annual Subscription Value (ASV) FX Impact in millions 3Q19 3Q18 EMEA APAC 18% 5% ASV(1) $1,995 $1,902 Adjusted for: FX — (12) ASV, CC 1,995 1,890 Americas 77% (1) ASV is defined as the annual value of subscriptions unde
Slide 13: 3Q19 GAAP Results
3Q19 GAAP RESULTS INCOME STATEMENT HIGHLIGHTS GAAP GAAP in millions except per share amounts 3Q19 3Q18 % Chg Net revenues $1,336 $1,200 11% Operating Expenses $630 $598 5% Operating Income $706 $602 17% Operating Margin 53% 50% +3 pts Net Income attributable to ICE $529 $458 16% Diluted EPS $0.94 $0
Slide 14: 3Q19 Balance Sheet
3Q19 BALANCE SHEET in millions 09/30/2019 12/31/2018 CHANGE Assets ▪ $655 million unrestricted cash Unrestricted Cash $655 $724 $(69) Other Current Assets 68,216 65,968 2,248 ▪ Total debt of $7.8 billion; Adj. Debt-to- Current Assets 68,871 66,692 2,179 EBITDA(1) of 2.3x PPE (net) 1,505 1,241 264 ▪
Slide 15: Adjusted Net Income Attributable to ICE and EPS
ADJUSTED NET INCOME ATTRIBUTABLE TO ICE AND EPS 3 Months 3 Months 9 Months 9 Months in millions except per share amounts Ended 9/30/19 Ended 9/30/18 Ended 9/30/19 Ended 9/30/18 Net income attributable to ICE $529 $458 $1,485 $1,377 Add: Interactive Data integration costs and acquisition-related succ
Slide 16: 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 17: 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 Nine Months Ended Nine Months Ended Nine Months Ended September 30, September 30, September 30, 2019 2018 2019 2018 2019 2018 Total revenues, less transa
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 September 30, September 30, September 30, 2019 2018 2019 2018 2019 2018 Total revenues, less tra
Slide 19: Adjusted EBITDA Reconciliation
ADJUSTED EBITDA RECONCILIATION Trailing 12 Months in millions Ended 9/30/19 Adjusted net income $2,196 Add: Interest expense 285 Add: Adjusted income tax expense (1) 625 Add: Adjusted depreciation and amortization(1) 318 Adjusted EBITDA from Continuing Ops $3,424 Pro forma EBITDA - Simplifile (pre-a
Slide 20: Adjusted Effective Tax Rate Reconciliation
ADJUSTED EFFECTIVE TAX RATE RECONCILIATION 3 Months 3 Months in millions Ended 9/30/19 Ended 9/30/18 Income before income taxes $640 $554 Income tax expense 103 89 Effective tax rate 16% 16% Income before income taxes $640 $554 Add: Acquisition-related success fees — 5 Add: Amortization of acquisiti
Slide 21: Free Cash Flow Calculation
FREE CASH FLOW CALCULATION Nine months ended Nine months ended September 30, 2019 September 30, 2018 Cash flow from operations $1,882 $1,735 Less: Capital expenditures and capitalized software development costs (203) (161) Add: Section 31 fees, net 70 117 Free cash flow $1,749 $1,691 21