Intercontinental Exchange Inc. · NYSE:ICE

Intercontinental Exchange — Goldman Sachs US Financial Services Conference 2016

21 slides from Intercontinental Exchange's conference presentation, Dec 7, 2016

  1. Slide 1: Intercontinental Exchange Investor Presentation

    Intercontinental Exchange (NYSE: ICE) Investor Presentation December 7th, 2016

  2. 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

  3. Slide 3: Best in Class Growth & Returns

    BEST IN CLASS GROWTH & RETURNS  >50% recurring revenue, highly transparent financial model  Strong growth in operating cash flow and capital return  Double-digit earnings growth track record  Focus on creating value by generating improving Return on Invested Capital (ROIC) consistently above cos

  4. Slide 4: Global Exchange, Clearing & Data Leader

    GLOBAL EXCHANGE, CLEARING & DATA LEADER 11 GLOBAL EXCHANGES 6 CENTRAL CLEARING HOUSES GLOBAL DATA SERVICES Across All Asset Classes Across Futures & OTC Leveraging Proprietary Data  Volume growth leader in global  Clearing houses in the US, Europe,  Strong recurring revenue streams futures market

  5. Slide 5: Global Network of Exchanges & Clearing Houses

    GLOBAL NETWORK OF EXCHANGES & CLEARING HOUSES  Offering key asset classes across our 11 exchanges  Home to key global benchmarks around the world:  Energy: ~50% of crude & refined oil ADV  Ags: benchmarks in sugar, coffee, cocoa and canola  Rates: leading European short-term rates contracts  E

  6. Slide 6: Diverse, Global & Proprietary Data Services

    DIVERSE, GLOBAL & PROPRIETARY DATA SERVICES Pricing & Analytics – YTDQ316 Rev $624MM, +4% y/y(1) Full range of integrated data services for ▪ Independent evaluated pricing services, reference data and trade life-cycle and risk management valuations across fixed income markets In millions ▪ Expanding

  7. Slide 7: Virtuous Cycle Driving Consistent Earnings Growth

    Virtuous Cycle Driving Consistent Earnings Growth  Data, trading and risk management infrastructure brings unparalled efficiency as an enterprise solution  Secular trends driving demand for data include passive investing, market fragmentation, automation, clearing, reporting, requirements for inde

  8. Slide 8: 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 (1) $3.4B (2) +4% y/y (1) Net of Transaction Based Expenses (2)

  9. Slide 9: Unmatched, Consistent Growth Through Market Cycles

    UNMATCHED, CONSISTENT GROWTH THROUGH MARKET CYCLES Driving growth, investing to generate strong returns on capital & double digit adj. EPS target (1),(2) (2) (2) +4% y/y (2) +11% y/y $ (Millions) $ (Millions) YTD YTD Q316 Q316 (2) +10% y/y +69% y/y $ (Millions) $ (Millions) YTD YTD Q316 Q316 (1) Net

  10. Slide 10: Appendix

    APPENDIX INTERCONTINENTAL EXCHANGE 10

  11. Slide 11: 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

  12. Slide 12: 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

  13. Slide 13: 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 (1) $

  14. Slide 14: ICE Summary Balance Sheet

    ICE Summary Balance Sheet In millions Balance Sheet 9/30/2016 12/31/2015 Change Assets ▪ $458MM unrestricted cash Unrestricted Cash $458 $627 $(169) ▪ Total debt of $6.3B; Adj. Debt-to- Other Current Assets 51,386 52,686 (1,300) EBITDA(1) of 2.3x Current Assets 51,844 53,313 (1,469) PPE (net) 1,080

  15. Slide 15: Adjusted Net Income 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

  16. Slide 16: Adjusted Net Income 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

  17. Slide 17: 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

  18. Slide 18: 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

  19. Slide 19: 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

  20. Slide 20: Inorganic Growth: ICE, a Growing Global Network

    ICE: A GROWING GLOBAL NETWORK 1997 2001 2007 2008 2010 2011 2013 2014 Continental Power ICE expands reach ICE acquires ICE expands in Asia ICE expands into ICE acquires New ICE enters credit market ICE invests in Exchange (CPEX) in emissions markets NYSE Euronext to create with Singapore energy futu

  21. Slide 21: Serving Global Markets

    SERVING GLOBAL MARKETS MARKETS & CLEARING PRODUCTS MARKETS & CLEARING PRODUCTS FUTURES EXCHANGES CASH EXCHANGES ICE Futures U.S. New York Stock Exchange ICE Futures Europe NYSE Arca ICE Futures Canada NYSE MKT ICE Futures Singapore NYSE Amex Options ICE Endex NYSE Arca Options NYSE Bonds CENTRAL CLE

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