Slide 1: 1Q17 Earnings Supplement
INTERCONTINENTAL EXCHANGE 1Q17 Earnings Supplement INTERCONTINENTAL EXCHANGE 1Q17 Earnings May 3, 2017 Supplement May 3, 2017
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 2017 Earnings Call Participants
ICE First Quarter 2017 Earnings Call Participants 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 Aldridg
Slide 4: First Quarter 2017 Highlights
First Quarter 2017 Highlights ▪ 1Q17 organic Data revenue growth +6%(1) y/y ▪ 1Q17 ADV +4% y/y, OI +6% y/y; April YTD ADV & OI +9% y/y ▪ NYSE listings leadership; over 85% share of U.S. IPO proceeds YTD ▪ Generated operating cash flow of $611MM ▪ Returned ~$350MM via share repurchases & dividends; +
Slide 5: First Quarter 2017 Performance
First Quarter 2017 Performance INCOME STATEMENT HIGHLIGHTS (in millions except per share amounts and percentages) 1Q17 1Q16 % Chg Net Revenues $1,164 $1,154 1% Net Revenues in Constant Currency(1) 3% Adj. Operating Expenses $495 $476 4% Adj. Operating Income $669 $678 (1)% Adj. Operating Margin 57%
Slide 6: First Quarter 2017 Data & Listings Segment
First Quarter 2017 Data & Listings Segment ▪ Recurring revenues 54% of total revenues ▪ Data & Listings revenue +9% y/y in constant currency(2) ▪ 6% organic Data revenue growth in constant currency(1)(2) ▪ Pricing & analytics organic constant currency revenue growth accelerated to +6% y/y(1)(2) ▪ Ad
Slide 7: First Quarter 2017 Trading & Clearing Segment
First Quarter 2017 Trading & Clearing Segment ▪ Trading & Clearing revenue -4% y/y in constant currency(1) ▪ Futures ADV +4% y/y, EU interest rates +20% y/y ▪ Record futures open interest in Brent, UK natural gas, gasoil, heating oil, cocoa and MSCI indices ▪ Adj. operating margin of 64% ▪ April ADV
Slide 8: First Quarter 2017 Cash Flow & Capital Return
First Quarter 2017 Cash Flow & Capital Return ▪ Operating cash flow of $611MM, +2% y/y ▪ $229MM in shares repurchased: approximately $80MM more repurchased in 2QTD ▪ $120MM in dividends +17% y/y ▪ Repayment of $117MM in debt in 1Q17, leverage of 2.2x debt-to-EBITDA(1) Debt Profile Operating Cash Flo
Slide 9: Global Market Infrastructure Leader
Global Market Infrastructure Leader Agility to capture global growth trends by serving customers across their workflow around the clock AMERICAS EMEA ASIA-PACIFIC Global futures & options trading & clearing - Global futures & options trading & clearing - Global futures & options trading & clearing -
Slide 10: Diverse, Global & Proprietary Data Services
Diverse, Global & Proprietary Data Services • Positioned in key growth areas: financial and commodities derivatives markets, equities markets, risk management and tech infrastructure to support data capacity expansion • Data revenues on track to grow at least 6% y/y(2) for FY 2017 ICE Data Services
Slide 11: Listings Leadership
Listings Leadership • NYSE remains the #1 exchange globally with over $11B in proceeds raised via 31 IPOs • NYSE has listed 27 of the last 27 US operating company IPOs that raised $700 million or more • Over 90% of ETF assets under management are listed on NYSE Arca Global Capital Raised YTD 4/30/17
Slide 12: Strong Futures Volume and OI in 1Q17
Strong Futures Volume and OI in 1Q17 All figures in thousands Total ADV & OI ADV Total Oil ADV & OI OI ADV OI 6,000 72,000 1,800 12,000 5,000 60,000 10,000 4,000 48,000 1,350 8,000 3,000 36,000 900 6,000 2,000 24,000 4,000 450 1,000 12,000 2,000 0 0 0 0 1Q16 1Q17 1Q16 1Q17 Total ADV Total OI Oil ADV
Slide 13: A Global Platform for Continued Growth
A Global Platform for Continued Growth ICE ADV in EU & Asian Hours ICE Energy Revenue & ADV 4,000 Record 55% of oil revenue ICE ADV 250 3,000 3,000 200 2,250 (thousands) $ (Millions) 150 ADV 2,000 1,500 100 750 1,000 50 0 0 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 0 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 Oil Nat Gas Eu
Slide 14: Building Momentum in EU Interest Rates
Building Momentum in EU Interest Rates ▪ April YTD EU interest rate ADV +31% y/y; Euribor ADV +48% y/y, Sterling ADV +24% y/y ▪ Open interest in interest rates +22% y/y at April 30 ▪ Catalysts for increased volatility: Central Bank activity, FX fluctuation and global economic data EU Interest Rate A
Slide 15: Comprehensive Growth Platform
Comprehensive Growth Platform Strategic positioning as a leading global markets infrastructure provider: ▪ Growth company with highly cash-generative model & proven capital discipline/deployment ▪ Integrated, efficient ecosystem of data, trading and clearing ▪ Diversified globally and by asset class
Slide 16: Appendix
APPENDIX INTERCONTINENTAL EXCHANGE 16
Slide 17: First Quarter 2017 Summary Balance Sheet
First Quarter 2017 Summary Balance Sheet In millions BALANCE SHEET 03/31/2017 12/31/2016 CHANGE Assets ▪ $360MM unrestricted cash Unrestricted Cash $360 $407 $(47) Other Current Assets 54,713 56,726 (2,013) ▪ Total debt of $6.2B; Adj. Debt-to- Current Assets 55,073 57,133 (2,060) EBITDA(1) of 2.2x P
Slide 18: Adjusted Net Income Attributable to ICE and EPS
Adjusted Net Income Attributable to ICE and EPS 12 Months 12 Months 3 Months 3 Months Ended Ended In millions (except per share amounts) Ended 3/31/17 Ended 3/31/16 12/31/16 12/31/15 Net income attributable to ICE $502 $369 $1,422 $1,274 Add: Interactive Data and NYSE transaction and integration cos
Slide 19: Adjusted Net Income Attributable to ICE and EPS
Adjusted Net Income Attributable to ICE and EPS 12 Months 12 Months Ended Ended In millions (except per share amounts) 12/31/14 12/31/13 Net income attributable to ICE $981 $254 Add: Interactive Data and NYSE transaction and integration costs and acquisition-related success fees 124 140 Add: Amortiz
Slide 20: Adjusted Operating Income, Operating Margin & Operating Expense Reconciliation
Adjusted Operating Income, Operating Margin & Operating Expense Reconciliation In millions Trading and Data and Listings Clearing Segment Segment Consolidated Three Months Three Months Three Months Ended March 31, Ended March 31, Ended March 31, 2017 2016 2017 2016 2017 2016 Total revenues, less tra
Slide 21: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation In millions Trailing 12 Months Ended 3/31/17 Adjusted net income $1,665 Add: Income tax expense 630 Add: Income tax expense adjustment on Non-GAAP Items 92 Add: Interest expense 177 Add: Depreciation and amortization(1) 278 Adjusted EBITDA from Continuing Ops $2,842 Ad
Slide 22: Adjusted Effective Tax Rate Reconciliation
Adjusted Effective Tax Rate Reconciliation In millions 3 Months 3 Months Ended 3/31/17 Ended 3/31/16 Income before income tax expense $723 $540 Less: Income tax expense (213) (163) Net Income $510 $377 Effective tax rate 30% 30% Income before income tax expense $723 $540 Add: Interactive Data and NY