Intercontinental Exchange Inc. · NYSE:ICE
Intercontinental Exchange — Merger or Acquisition (August 2020)
21 slides from Intercontinental Exchange's merger presentation, Aug 6, 2020
Slide 1: Building a Leading Provider of Digital Mortgage Solutions
August 6 th , 2020 Building a Leading Provider of Digital Mortgage Solutions
Slide 2: Cautionary Statement Regarding Forward Looking Statements
INTERCONTINENTAL EXCHANGE 2 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 his
Slide 3: Call Participants
INTERCONTINENTAL EXCHANGE 3 Jeff Sprecher Chairman & CEO Chairman, NYSE Scott Hill Chief Financial Officer Ben Jackson President Call Participants ICE Management: Ellie Mae Management: ICE Investor Relations: Warren Gardiner, CFA Vice President, Investor Relations warren.gardiner@theice.com Mary Car
Slide 4: Transaction Overview
INTERCONTINENTAL EXCHANGE Consideration & Financials Transaction Overview 4 ▪ Two combined networks establish ICE as a leading provider of end - to - end electronic mortgage workflow solutions ▪ Large and growing addressable market driven by demand for automation & efficiencies ▪ Complementary platf
Slide 5: About Ellie Mae
INTERCONTINENTAL EXCHANGE $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 $0 $1 $2 $3 $4 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020E Purchase + Refi Vol. Ellie Mae Revenue About Ellie Mae 5 ▪ A leading enterprise digital lending platform and B2B network helping non - ban
Slide 6: Strategic Rationale
INTERCONTINENTAL EXCHANGE Strategic Rationale 6 ▪ Transaction firmly establishes ICE as the leading provider of end - to - end electronic workflow solutions serving the U.S. residential mortgage industry ▪ ~$1.1 billion of ’20 pro - forma ICE Mortgage Services revenues; ~$600 million of pro - forma
Slide 7: A Leader in End-to-End Mortgage Workflow Solutions
INTERCONTINENTAL EXCHANGE A Leader in End - to - End Mortgage Workflow Solutions 7 Lead Generation & Application Processing & Underwriting Pre - Closing Closing Post - Closing Secondary Mtg. Insurers Appraisers Credit, Flood & Other Vendors Settlement Agents Notaries Title Agents Counties Investors
Slide 8: Large & Growing Addressable Market
INTERCONTINENTAL EXCHANGE Application, Processing & Underwriting Closing & Secondary Data & Analytics Adjacent Opportunities Large & Growing Addressable Market 8 ~$4bn ~$4bn ~$1bn ~$1bn ~$10 billion Total Addressable Market Large Addressable Market ▪ Demand for workflow automation and productivity t
Slide 9: Largest Electronic Network of Mortgage Stakeholders
INTERCONTINENTAL EXCHANGE Largest Electronic Network of Mortgage Stakeholders 9 Platform Connects All Stakeholders in One Digital Ecosystem ▪ Brings together Title, Settlement & County stakeholders, which have traditionally been disconnected from the lender process ▪ Creates additional revenue touch
Slide 10: Data & Analytics Fueling Automation
INTERCONTINENTAL EXCHANGE Data & Analytics Fueling Automation 10 Network & Data • Encompass = one of the largest systems of record • Data is refreshed & cleansed throughout loan manufacturing process ensuring accuracy • AllRegs = comprehensive online database of government & conventional lending gui
Slide 11: Value Proposition Directly Address Workflow Inefficiencies
INTERCONTINENTAL EXCHANGE Value Proposition Directly Address Workflow Inefficiencies 11 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 2009 2019 ~$4,000/loan ~$8,000/loan 2x increase Opportunity to Share in Customer Efficiency Gains ▪ Rising origination costs and large origination backlogs are dr
Slide 12: Transaction Details & Assumptions
INTERCONTINENTAL EXCHANGE Transaction Details & Assumptions 12 Pro - forma Revenue & EBITDA Financing & Balance Sheet Fees, Approvals & Timing ▪ ICE Mortgage Services pro - forma 2020 revenue of ~$1.1 billion & pro - forma adjusted EBITDA 1 of ~$600 million ▪ Ellie Mae: ~$900 million of revenue & ~$
Slide 13: Expected Re-Segmenting
INTERCONTINENTAL EXCHANGE Expected Re - Segmenting 13 Exchanges Expected to include: • Trading & Clearing: ICE futures and the NYSE • Data & Listings: Exchange data, colocation & administration fees related to ICE futures and the NYSE • Data & Listings: NYSE listings revenue Fixed Income & Other Mor
Slide 14: A History of Evolution & Growth
INTERCONTINENTAL EXCHANGE A History of Evolution & Growth 14 $0.48 $0.68 $0.83 $0.85 $1.07 $1.38 $1.50 $1.68 $1.92 $2.43 $2.79 $2.97 $3.59 $3.88 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Slide 15: Appendix
INTERCONTINENTAL EXCHANGE Appendix 15
Slide 16: Overview of Ellie Mae Products and Revenue Model
INTERCONTINENTAL EXCHANGE Overview of Ellie Mae Products and Revenue Model 16 ▪ All - in - one SaaS - based mortgage management system providing workflow management and vendor connectivity Encompass Loan Origination System Ellie Mae Network Other Solutions Services ▪ Processing ▪ Risk Management and
Slide 17: Overview of Simplifile Products and Revenue Model
INTERCONTINENTAL EXCHANGE Overview of Simplifile Products and Revenue Model 17 ▪ Largest e - recording network facilitating electronic document submission and payment of recording fees to over 2,000 U.S. counties ▪ Submitters electronically prepare and submit documents through web - based service fo
Slide 18: Overview of MERS Products and Revenue Model
INTERCONTINENTAL EXCHANGE Overview of MERS Products and Revenue Model 18 Product Description Revenue Model eRegistry ▪ Transactional, varying with eNote volumes ▪ Per loan charge, typically combined with MERS Residential registration ▪ A national electronic database that tracks changes in mortgage s
Slide 19: Ellie Mae Customer Base
INTERCONTINENTAL EXCHANGE Non - Bank Lender 68% Bank 25% Credit Union 7% Non - Bank Lender 59% Bank 30% Credit Union 11% Ellie Mae Customer Base 19 Customer Count By Type ’20F Ellie Mae Loan Volume by Type Source: Ellie Mae
Slide 20: ICE Mortgage Services Revenue Mix
INTERCONTINENTAL EXCHANGE Transaction - based 100% ICE Mortgage Services Revenue Mix 20 MERS + Simplifile Pro Forma ICE Mortgage Services (MERS, Simplifile & Ellie Mae) Transaction - based ~ 60% Recurring ~ 40% Source: ICE Mortgage Services and Ellie Mae
Slide 21: Non-GAAP reconciliation
INTERCONTINENTAL EXCHANGE 21 in millions except per share amounts 12 Months Ended 12/31/19 12 Months Ended 12/31/18 12 Months Ended 12/31/17 12 Months Ended 12/31/16 12 Months Ended 12/31/15 12 Months Ended 12/31/14 12 Months Ended 12/31/13 Net income attributable to ICE $1,933 $1,988 $2,526 $1,429
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