Slide 1: 2Q18 Earnings Supplement
Intercontinental Exchange Earnings Supplement Second Quarter 2018 August 2, 2018 2Q18 Earnings Supplement August 2, 2018
Slide 2: Forward-Looking Statements and Legends
FORWARD-LOOKING STATEMENTS 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 ar
Slide 3: ICE 2Q18 Earnings Call Participants
ICE 2Q18 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 Manager, Investor
Slide 4: 2Q18 Highlights
2Q18 HIGHLIGHTS in millions except per share amounts INCOME STATEMENT Solid operating performance HIGHLIGHTS 2Q18 2Q17 % Chg Net Revenues $1,246 $1,180 6% Net revenue Adj. op income @ constant currency 5% +6% y/y +8% Adj. Op Expenses $503 $490 2% Adj. EPS +18% y/y Adj. Op Income $743 $690 8% Strong
Slide 5: 2Q18 Data & Listings Segment
2Q18 DATA & LISTINGS SEGMENT ▪ 1H18 Pricing & Analytics (P&A) signings +25% y/y; Amer +18% y/y, EMEA +45% y/y, APAC +26% y/y ▪ 1H18 ICE Global Network capacity +9% y/y ▪ 2H18 data growth expected to grow 6%+; 3Q18 data revenue $530M - $532M, 4Q18 data revenue $538M - $542M ▪ NYSE remains #1 globally
Slide 6: 2Q18 Trading & Clearing Segment
2Q18 TRADING & CLEARING SEGMENT ▪ Record trading & clearing revenue driven by blended rate per contract (RPC) +9% y/y ▪ 2Q18 Record Oil ADV +2% y/y, Record Ags ADV +13% y/y, Record Gilt ADV +29% y/y ▪ Adjusted operating income +12% y/y ▪ July open interest (OI) up double digits across oil, ags and r
Slide 7: 1H18 Highlights & 2H18 Outlook
1H18 HIGHLIGHTS & 2H18 OUTLOOK Solid operating performance Financial Guidance Net revenue Adj. op income ▪ FY data rev 5-6% organic, CC(1) growth y/y +5% y/y +8% ▪ 2H18 data rev 6%+ organic, CC(1) growth y/y Adj. EPS +21% y/y ▪ 3Q18 data rev $530M - $532M; 4Q18 data rev $538M - $542M Strong cash flo
Slide 8: Bringing Efficiencies to Fixed Income Workflows
BRINGING EFFICIENCIES TO FIXED INCOME WORKFLOWS ICE Content and Distribution 2017 Revenue Mix ▪ 2.7M price evaluations per day BondPoint & TMC Bonds ▪ ICE BofAML Indices; ~$1T AUM benchmarked Other ▪ Pre and Post Trade Analytics Corporates 16% ▪ Reference data on 10M+ instruments 27% ▪ ICE Global Ne
Slide 9: Globally Scaled Platform Built for Growth
GLOBALLY SCALED PLATFORM BUILT FOR GROWTH Largest Global Energy Global Interest Rates Marketplace ▪ Euribor OI +32% y/y ▪ Brent OI +11% y/y ▪ Record SONIA volume and OI; ▪ 500+ refined oil products +£128B notional traded since ▪ ICE WTI Permian will serve launch largest market for US crude ▪ SOFR pr
Slide 10: Consistent Track Record of Growth
CONSISTENT TRACK RECORD OF GROWTH 1H18 Highlights (1) Net revenues +5% y/y $2.97 (1) Adjusted EPS $2.79 (1) Adj. Op Income +8% y/y Adj. EPS +21%% y/y(1) $2.43 (1) R 18% G 7 CA (1) -' 1 $1.92 (1) '06 (1) $1.80 $1.68 (1) $1.50 $1.49 $1.38 $1.07 $0.83 $0.85 $0.68 $0.48 (2) (2) 2006 2007 2008 2009 2010
Slide 11: Appendix
APPENDIX Intercontinental Exchan
Slide 12: Expense Guidance (at current FX)
EXPENSE GUIDANCE (at current FX) Total FY Offset by Guidance $33M - $35M rev $2,040M - $2,050M $23M - Beginning $25M FY Guidance $2,000M - $2,050M 1Q18 2Q18 FY Guidance FY Core Guidance $2,000M - $2,040M $2,005M - $2,015M $10 (1) Starting 1Q18 1Q18 2Q18 2Q18 FY Severance M&A Updated FY FY Guidance E
Slide 13: GAAP to Organic Data Revenue
GAAP TO ORGANIC DATA REVENUE ▪ 2H18 data growth expected to grow 6%+ organic, CC ▪ 3Q18 data revenue $530M - $532M ▪ 4Q18 data revenue $538M - $542M (in millions) 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 Data Revenue (as reported) $520 $521 $518 $525 $520 $526 Adjusted for: 2017 Divestitures & wind down of acq
Slide 14: ASV to Organic ASV
ASV TO ORGANIC ASV (in millions) 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 ASV(1) $1,728 $1,765 $1,776 $1,812 $1,875 $1,883 Adjusted for: Acquisitions, divestitures & wind down of acq. businesses(2) (31) (30) (23) — (49) (37) FX 8 2 (4) (4) (12) — Organic ASV(3) $1,705 $1,737 $1,749 $1,808 $1,814 $1,846 (1) ASV
Slide 15: 2Q18 Data & Listings Revenue
2Q18 DATA & LISTINGS REVENUE 2Q18 Data & Listings Revenue 2Q18 Organic, CC Data Revenue Listings EMEA APAC 17% 18% 4% Exchange Data 23% 41% Pricing & Analytics 19% 78% Desktops & Connectivity Americas 15
Slide 16: Solid Average Daily Volume (ADV) and RPC Trends
SOLID AVERAGE DAILY VOLUME (ADV) AND RPC TRENDS Energy ADV & RPC Ags ADV & RPC ADV RPC ADV RPC 2,900 1.5 500 3.0 2,600 1.0 400 2.0 2,300 0.5 300 1.0 2,000 0.0 200 0.0 3Q17 4Q17 1Q18 2Q18 3Q17 4Q17 1Q18 2Q18 ADV RPC ADV RPC ADV Interest Rates ADV & RPC RPC ADV Total Financials ADV & RPC RPC 2,500 0.5
Slide 17: 2Q18 GAAP Results
2Q18 GAAP RESULTS GAAP GAAP INCOME STATEMENT HIGHLIGHTS GAAP GAAP YTD YTD (In millions except per share amounts) 2Q18 2Q17 % Chg 6/30/18 6/30/17 % Chg Net revenues $1,246 $1,180 6% $2,471 $2,346 5% Operating Expenses $591 $571 4% $1,166 $1,155 1% Operating Income $655 $609 7% $1,305 $1,191 10% Opera
Slide 18: 2Q18 Balance Sheet
2Q18 BALANCE SHEET In millions 06/30/2018 12/31/2017 CHANGE Assets Unrestricted Cash $532 $535 $(3) ▪ $532MM unrestricted cash Other Current Assets 57,028 53,027 4,001 Current Assets 57,560 53,562 3,998 ▪ Total debt of $6.9B; Adj. Debt-to- EBITDA(1) of 2.2x (estimated ~2.5x at PPE (net) 1,220 1,246
Slide 19: Adjusted Net Income Attributable to ICE and EPS
ADJUSTED NET INCOME ATTRIBUTABLE TO ICE AND EPS 3 Months 3 Months 6 Months 6 Months In millions (except per share amounts) Ended 6/30/18 Ended 6/30/17 Ended 6/30/18 Ended 6/30/17 Net income attributable to ICE $455 $419 $919 $922 Add: Interactive Data transaction and integration costs 12 8 24 20 Add
Slide 20: Adjusted Net Income Attributable to ICE and EPS
ADJUSTED NET INCOME ATTRIBUTABLE TO ICE AND EPS 12 Months 12 Months 12 Months 12 Months 12 Months Ended Ended Ended Ended 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 $1,274 $981 $254 Add: Interactive Data and
Slide 21: Adjusted Operating Income, Operating Margin & Operating Expense Reconciliation
ADJUSTED OPERATING INCOME, OPERATING MARGIN & OPERATING EXPENSE RECONCILIATION Trading and Data and Listings In millions Clearing Segment Segment Consolidated Six Months Ended Six Months Ended Six Months Ended June 30, June 30, June 30, 2018 2017 2018 2017 2018 2017 Total revenues, less transaction-
Slide 22: Adjusted Operating Income, Operating Margin & Operating Expense Reconciliation
ADJUSTED OPERATING INCOME, OPERATING MARGIN & OPERATING EXPENSE RECONCILIATION Trading and Data and Listings In millions Clearing Segment Segment Consolidated Three Months Three Months Three Months Ended June 30, Ended June 30, Ended June 30, 2018 2017 2018 2017 2018 2017 Total revenues, less transa
Slide 23: Adjusted EBITDA Reconciliation
ADJUSTED EBITDA RECONCILIATION Trailing 12 Months In millions Ended 6/30/18 Adjusted net income $1,923 Add: Interest expense 204 Add: Adjusted income tax expense (1) 714 Add: Adjusted depreciation and amortization(1) 270 Adjusted EBITDA from Continuing Ops $3,111 Adjusted EBITDA - NGX & BondPoint (p
Slide 24: Adjusted Effective Tax Rate Reconciliation
ADJUSTED EFFECTIVE TAX RATE RECONCILIATION 6 Months 6 Months 3 Months 3 Months Ended Ended Ended Ended In millions 6/30/18 6/30/17 6/30/18 6/30/17 Income before income taxes $1,228 $1,292 $611 $567 Income tax expense 292 354 149 140 Effective tax rate 24% 27% 24% 25% Income before income taxes $1,22