Slide 1: Fourth Quarter & Full Year 2016 Earnings Supplement
INTERCONTINENTAL EXCHANGE FOURTH QUARTER & FULL YEAR 2016 EARNINGS SUPPLEMENT FEBRUARY 7, 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 Fourth Quarter 2016 Earnings Call Participants
ICE Fourth Quarter 2016 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 Aldrid
Slide 4: Record Results Continue with Best Year in ICE's History
Record Results Continue with Best Year in ICE's History INCOME STATEMENT HIGHLIGHTS FY15 (in millions except per share amounts and percentages) FY16 Pro-forma(1) % Chg Net Revenues $4,499 $4,311 4% Net Revenues in Constant Currency(2) 6% Adj. Operating Expenses $1,947 $2,012 (3)% Adj. Operating Marg
Slide 5: Fourth Quarter 2016 Performance
Fourth Quarter 2016 Performance INCOME STATEMENT HIGHLIGHTS 4Q15 (in millions except per share amounts and percentages) 4Q16 Pro-forma(1) % Chg Net Revenues $1,138 $1,086 5% Net Revenues in Constant Currency(2) 7% Adj. Operating Expenses $493 $507 (3)% Adj. Operating Income $645 $579 12% Adj. Operat
Slide 6: Fourth Quarter 2016 Data & Listings Results
Fourth Quarter 2016 Data & Listings Results ▪ Data & Listings revenue +11% y/y in constant currency(1)(2) ▪ +6% y/y in constant currency(2) excluding S&P businesses acquired in 4Q16 ▪ Adj. op. margin +4 points to 52%; best in class margin profile ▪ Recurring revenue reached 54% of consolidated reven
Slide 7: Fourth Quarter 2016 Trading & Clearing Results
Fourth Quarter 2016 Trading & Clearing Results ▪ Trading & Clearing revenue +3% y/y in constant currency(2) ▪ Energy rev. +9% y/y; financials -16% y/y due largely to currency; ▪ Total ADV +10%, energy +12%, EU interest rates +9% y/y ▪ Adj. op. margin +4 points due to continued expense discipline and
Slide 8: Full Year 2016 Performance
Full Year 2016 Performance ▪ Consolidated revenues of $4.5 billion; up 4% y/y(1); up 6% on a constant currency basis(1)(2) (1) (1) Adj. Op Margin Trading & Clearing Rev, net Data & Listings Rev ts 57% +2% $2.1B +7% $2.4B 60 +4 p 2,400 2,000 50 2,000 1,600 40 $ (Millions) (Percent) $ (Millions) 1,600
Slide 9: Disciplined Use of Capital to Deliver Shareholder Value
Disciplined Use of Capital to Deliver Shareholder Value ▪ ICE expects to return over $1 billion to shareholders in 2017 including announced plans for: ▪ An 18% increase in our quarterly dividend ▪ $950MM in share repurchase authorization; $200MM share repurchases in 1Q17 Operating Cash Flow & Capita
Slide 10: ROIC Increases as Integration & Synergies are Completed
ROIC Increases as Integration & Synergies are Completed ▪ M&A analysis focuses on longterm value creation built on the foundation of integration and cost reductions delivered in the first three years (1) ▪ ROIC consistently above cost of capital and at or above key competitors; targeted to deliver d
Slide 11: 2017 Guidance
2017 Guidance Financial Guidance Expenses/Synergies (1) ▪ Data Revenue at least +6% in constant currency ▪ Delivered $120MM in FY16 synergies ▪ Data revenues under contract entering ▪ Expect increased synergies of $25 - 2017 up 8% vs. prior year $30MM to be realized in 2018 & 2019 ▪ Adj. expenses $1
Slide 12: Record Annual Revenues Driven By Strategic Growth
Record Annual Revenues Driven By Strategic Growth • Strategy focuses on delivering consistent growth in dynamic economic, regulatory and volatility environments • Recurring revenue of 53% of consolidated revenues in FY16 • Serves as a strong platform for continued growth Recurring Revenue $2.4B ICE
Slide 13: Key Growth Drivers are Complimentary Across ICE
Key Growth Drivers are Complimentary Across ICE Data & Listings Trading & Clearing ▪ Secular trends driving data demand: real-time ▪ Demand for hedging and trading solutions across information and analytics requirements, growth all assets; solid long term volume and OI trends in in indexation and pa
Slide 14: Consistent Track Record of Revenue & Earnings Growth
Consistent Track Record of Revenue & Earnings Growth ▪ Consistent financial performance and operational execution; delivering on strategic growth to drive excess ROIC and double-digit earnings growth over the long term ▪ Rising cash flow, declining leverage, growing dividends and share repurchases I
Slide 15: Appendix
APPENDIX INTERCONTINENTAL EXCHANGE 15
Slide 16: Diverse, Global & Proprietary Data Services
Diverse, Global & Proprietary Data Services Pricing & Analytics – 2016 Rev $858MM, +6% y/y(1) End to end data services for trade life- ▪ Leader in continuous and end of day fixed income pricing cycle, risk management and connectivity ▪ Independent evaluations for 2.7 million instruments daily ▪ Refe
Slide 17: Diverse Global Portfolio Driving Growth in ADV & OI
Diverse Global Portfolio Driving Growth in ADV & OI All figures in thousands Crude Oil ADV & OI ADV Ags ADV & OI ADV OI OI 1,000 7,000 450 4,000 6,000 400 800 350 5,000 3,250 300 600 4,000 250 3,000 2,500 400 200 2,000 150 200 100 1,750 1,000 50 0 0 63% 0 1,000 2012 2013 2014 2015 2016 2012 2013 201
Slide 18: ICE Summary Balance Sheet
ICE Summary Balance Sheet In millions BALANCE SHEET 12/31/2016 12/31/2015 CHANGE Assets ▪ $407MM unrestricted cash Unrestricted Cash $407 $627 $(220) Other Current Assets 56,726 52,686 4,040 ▪ Total debt of $6.4B; Adj. Debt-to- Current Assets 57,133 53,313 3,820 EBITDA(1) of 2.2x PPE (net) 1,129 1,0
Slide 19: Adjusted Net Income from Continuing Ops 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 Ended Ended 12 Months 12 Months 12/31/16 12/31/15 Ended 12/31/16 Ended 12/31/15 Net income attributable to ICE $352 $370 $1,422 $1,274 Add: NYSE and Interactive Data transacti
Slide 20: Adjusted Net Income from Continuing Ops 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 Ended 12/31/14 Ended 12/31/13 Net income attributable to ICE $981 $254 Add: NYSE and Interactive Data transaction and integration costs and acquisition related success fees
Slide 21: Adjusted Operating Income, Operating Margin & Operating Expense Reconciliation
Adjusted Operating Income, Operating Margin & Operating Expense Reconciliation In millions 3 Months Ended 3 Months Ended 12 Months Ended 12 Months Ended 12/31/16 12/31/15 12/31/16 12/31/15 Total revenues, less transaction-based expenses $1,138 $875 $4,499 $3,338 Total operating expenses 580 457 2,33
Slide 22: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation In millions Trailing 12 Months Ended 12/31/16 Adjusted net income $1,665 Add: Income tax expense 580 Add: Income tax expense adjustment on Non-GAAP Items 142 Add: Interest expense 178 Add: Depreciation and amortization(1) 275 Adjusted EBITDA from Continuing Ops $2,840
Slide 23: Adjusted Effective Tax Rate Reconciliation
Adjusted Effective Tax Rate Reconciliation In millions 3 Months 3 Months 12 Months 12 Months Ended Ended Ended Ended 12/31/16 12/31/15 12/31/16 12/31/15 Income before income tax expense $530 $391 $2,029 $1,653 Less: Income tax expense 171 18 580 358 Net Income $359 $373 $1,449 $1,295 Effective tax r