Slide 1: 4Q19 Earnings Supplement
Intercontinental Exchange Earnings Supplement Fourth Quarter 2019 February 6, 2020 4Q19 Earnings Supplement February 6, 2020
Slide 2: Cautionary Statement Regarding Forward Looking Statements
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 not historical facts are forward-look
Slide 3: ICE Fourth Quarter 2019 Earnings Call Participants
ICE FOURTH QUARTER 2019 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 Man
Slide 4: 4Q19 Performance
4Q19 PERFORMANCE in millions except per share amounts INCOME STATEMENT Strong Operating Performance HIGHLIGHTS 4Q19 4Q18 % Chg Net Revenues $1,298 $1,308 (1)% FY19 data revenue +5% y/y, CC Adj. Op Expenses $570 $553 3% FY19 trading & clearing revenue Adj. Op Income $728 $755 (4)% +6% y/y, CC Adj. Op
Slide 5: Record Annual Capital Return in 2019
RECORD ANNUAL CAPITAL RETURN IN 2019 ▪ Record capital return of $2.1B in 2019, +19% y/y, more than double pre-IDC capital return ▪ Leverage 2.3x debt-to-EBITDA(1) ▪ 1Q20 dividend $0.30, +9% y/y; +14% CAGR since inception ▪ $2.4B share repurchase program effective Jan 1, 2020; expect to deploy over ~
Slide 6: 4Q19 Trading & Clearing Performance
4Q19 TRADING & CLEARING PERFORMANCE ▪ Record 4Q19 European natural gas ADV +41% y/y, other crude & refined products ADV +7% y/y, record ags & metals ADV +8% y/y 78.7 ▪ January ADV +27% y/y including record energy ADV +29% y/y, record oil ADV +41%, record EU natural 71.1 y/y, MSCI ADV gas ADV +117% y
Slide 7: 4Q19 Data & Listings Performance
4Q19 DATA & LISTINGS PERFORMANCE ▪ 4Q19 data revenue growth driven by continued strength in ICE Data Indices, futures exchange data and the ICE Global Network ▪ FY19 data revenue +5% y/y, CC; 40th consecutive quarter of year-over-year growth ▪ Annual Subscription Value (ASV)(1) +5% y/y, CC entering
Slide 8: 2019 Performance & 2020 Guidance
2019 PERFORMANCE & 2020 GUIDANCE in millions except per share amounts Financial Guidance INCOME STATEMENT HIGHLIGHTS 2019 2018 % Chg ▪ FY data revenue $2.29 - $2.33B ▪ 1Q20 data revenue $560 - $565M Net Revenues $5,202 $4,979 4% ▪ FY cap ex/software $290 - $320M Adj. Op Expenses $2,189 $2,071 6% ▪ 1
Slide 9: A Synergistic Model Supported by Technology & Expertise
A SYNERGISTIC MODEL SUPPORTED BY TECHNOLOGY & EXPERTISE ▪ Leverage existing distribution ▪ Record 2019 natural gas revenue ▪ Bakkt announced acquisition and infrastructure to create ▪ ICE Futures Abu Dhabi plans to of Bridge2Solutions, new solutions to bring bring transparency to the widely expandin
Slide 10: Consistent Track Record of Growth
CONSISTENT TRACK RECORD OF GROWTH 2019 Highlights Record data rev +5% y/y, CC (1) $3.88 Record trading & clearing rev +6% y/y, CC Adjusted EPS (1) $3.59 Record net rev +5% y/y, CC Record adj. op income +4% y/y (1) (1) $2.97 Record adj. EPS +8% y/y 7% $2.79 1 AGR 9 C (1) - '1 $2.43 '06 (1) $1.92 (1)
Slide 11: Appendix
APPENDIX Intercontinental Exchan
Slide 12: Data Services Supplemental Data
DATA SERVICES SUPPLEMENTAL DATA Annual Subscription Value (ASV)(1) in millions 4Q19 3Q19(2) 2Q19(2) 1Q19(2) 4Q18(2) EMEA APAC ASV(1) 18% 5% $2,014 $1,982 $1,974 $1,963 $1,909 Adjusted for: FX — 16 7 3 7 ASV, CC 2,014 1,998 1,981 1,966 1,916 (1) ASV is defined as the annual value of subscriptions und
Slide 13: Data Services Supplemental Data
DATA SERVICES SUPPLEMENTAL DATA 4Q19 CC Data Revenue 2019 CC Data Revenue APAC APAC EMEA EMEA 5% 19% 5% 19% 76% 76% Americas Americas 13
Slide 14: 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 2019 2016 2017 2018 2019 ADV RPC ADV RPC ADV Interest Rates ADV & RPC RPC ADV Total Financials ADV & RPC RPC 2,400 0.50
Slide 15: 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 2019 2016 2017 2018 2019 ADV OI ADV OI ADV Interest Rates ADV & OI OI ADV Total Financials ADV & OI
Slide 16: GAAP Results
GAAP RESULTS INCOME STATEMENT HIGHLIGHTS GAAP GAAP GAAP GAAP in millions except per share amounts 4Q19 4Q18 % Chg 2019 2018 % Chg Net revenues $1,298 $1,308 (1)% $5,202 $4,979 4% Operating Expenses $676 $632 7% $2,529 $2,396 6% Operating Income $622 $676 (8)% $2,673 $2,583 3% Operating Margin 48% 52
Slide 17: ICE Summary Balance Sheet
ICE SUMMARY BALANCE SHEET in millions BALANCE SHEET 12/31/2019 12/31/2018 CHANGE Assets ▪ $841M unrestricted cash Unrestricted Cash $841 $724 $117 Other Current Assets 67,138 65,968 1,170 ▪ Total debt of 7.8B; Adj. Debt-to- Current Assets 67,979 66,692 1,287 EBITDA(1) of 2.3x PPE (net) 1,536 1,241 2
Slide 18: Adjusted Net Income from Continuing Ops and EPS
ADJUSTED NET INCOME FROM CONTINUING OPS AND EPS FROM CONTINUING OPS Three Months Three Months Twelve Months Twelve Months Ended Ended Ended Ended 12/31/2019 12/31/2018 12/31/2019 12/31/2018 Net income attributable to ICE common stockholders $ 448 $ 611 $ 1,933 $ 1,988 Add: Interactive Data transacti
Slide 19: Adjusted Net Income from Continuing Ops and EPS
ADJUSTED NET INCOME FROM CONTINUING OPS AND EPS FROM CONTINUING OPS Twelve Twelve Twelve Twelve Twelve Months Ended Months Ended Months Ended Months Ended Months Ended in millions except per share amounts 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 Net income attributable to ICE $2,526 $1,429 $1,27
Slide 20: 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 December 31, December 31, December 31, 2019 2018 2019 2018 2019 2018 Total revenues, less transa
Slide 21: 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 Twelve Months Ended Twelve Months Ended Twelve Months Ended December 31, December 31, December 31, 2019 2018 2019 2018 2019 2018 Total revenues, less tra
Slide 22: Adjusted EBITDA Reconciliation
ADJUSTED EBITDA RECONCILIATION Twelve Months Ended in millions 12/31/19 Adjusted net income $2,194 Add: Interest expense 285 Add: Adjusted income tax expense(1) 616 Add: Adjusted depreciation and amortization(1) 322 Adjusted EBITDA from Continuing Ops $3,417 Adjusted EBITDA - Simplifile (pre acquisi
Slide 23: Adjusted Effective Tax Rate Reconciliation
ADJUSTED EFFECTIVE TAX RATE RECONCILIATION Three Months Three Months Twelve Months Twelve Months Ended Ended Ended Ended in millions 12/31/2019 12/31/2018 12/31/2019 12/31/2018 Income before income tax expense (benefit) $587 $738 $2,481 $2,520 Less: Income tax expense (benefit) 134 119 521 500 Effec
Slide 24: Free Cash Flow Calculation
FREE CASH FLOW CALCULATION Twelve Months Ended Twelve Months Ended in millions 12/31/2019 12/31/2018 Cash flow from operations $2,659 $2,533 Less: Capital expenditures and capitalized software development costs (305) (280) Add/(Less): Section 31 fees, net (34) 33 Free cash flow $2,320 $2,286 24