Slide 1: 1Q18 Earnings Supplement
Intercontinental Exchange Earnings Supplement First Quarter 2018 May 3, 2018 1Q18 Earnings Supplement May 3, 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 First Quarter 2018 Earnings Call Participants
ICE FIRST QUARTER 2018 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 Mana
Slide 4: First Quarter 2018 Highlights
FIRST QUARTER 2018 HIGHLIGHTS in millions except per share amounts INCOME STATEMENT Solid revenue and earnings growth HIGHLIGHTS 1Q18 1Q17 % Chg Data revenue Net Trading & Net Revenues $1,225 $1,166 5% Clearing revenue +6% y/y Net revenues at constant currency 3% organic +11% y/y Adj. Op Expenses $4
Slide 5: First Quarter 2018 Data & Listings Segment
FIRST QUARTER 2018 DATA & LISTINGS SEGMENT ▪ Re-affirm 2018 data revenue guidance of 6-7% organic growth ▪ Pricing & Analytics (P&A) signings +20% y/y; ICE Global Network capacity +14% y/y ▪ NYSE remains #1 globally in listings proceeds with over $10B raised via 22 IPOs in 1Q18 Organic $ (in million
Slide 6: Compounding Growth in Data Services
COMPOUNDING GROWTH IN DATA SERVICES ▪ Annual subscription value, or ASV(1), represents ~90% of total data revenue ▪ ASV +6.5%(2) y/y entering 2Q18 on an organic, constant currency basis ▪ 1Q18 P&A signings +20% y/y; Americas +5% y/y, EMEA +81% y/y, APAC +2% y/y Annual Subscription Value 1Q18 Data Re
Slide 7: First Quarter 2018 Trading & Clearing Segment
FIRST QUARTER 2018 TRADING & CLEARING SEGMENT ▪ ICE average daily volume (ADV) +4% y/y, EU interest rates +8% y/y, Ags & Metals +15% y/y, ▪ Record ADV in Gasoil +28% y/y, Sterling +20% y/y, MSCI +46% y/y ▪ NYSE ADV +9% y/y, equity options +62% y/y ▪ Record CDS clearing revenue $42M and gross notiona
Slide 8: Solid Volume and Open Interest Trends
SOLID VOLUME AND OPEN INTEREST TRENDS ▪ April Oil ADV +7% y/y; Gasoil +36% y/y, Brent +5% y/y ▪ Record North American natural gas open interest in April; Nat gas basis market OI +19% y/y ▪ April Sterling ADV +16% y/y; MSCI & FTSE ADV +7% y/y ICE Total Futures & Options Global Oil ADV & OI ADV ADV &
Slide 9: A Proven Model for Long-Term Growth
A PROVEN MODEL FOR LONG-TERM GROWTH Strong, balanced revenue growth coupled with disciplined expense management allows us to return increasing amounts of capital to shareholders while also investing in strategic growth opportunities. 9
Slide 10: Comprehensive Index Solutions Serving a Growing Addressable Market
COMPREHENSIVE INDEX SOLUTIONS SERVING A GROWING ADDRESSABLE MARKET Market Trends & Challenges ICE's Index & ETF Solutions ▪ Shift toward indexation and passive investing ▪ Broad suite of custom indices and benchmarks ▪ Growing fixed income ETF adoption ▪ ~$1T AUM benchmarked to ICE indices ▪ Growing
Slide 11: Bringing Efficiencies to the Fixed Income Workflow
BRINGING EFFICIENCIES TO THE FIXED INCOME WORKFLOW Market Trends & Challenges ICE's Fixed Income Solutions ▪ Reduced dealer inventory ▪ First quarter of BondPoint ownership ▪ Expanding debt outstanding ▪ Record 1Q18 BondPoint ADV +50% y/y ▪ Fragmented market structure ▪ Record 1Q18 daily average bid
Slide 12: ICE Global Network: Delivering Diverse Data to Global Market Participants
ICE GLOBAL NETWORK: DELIVERING DIVERSE DATA TO GLOBAL MARKET PARTICIPANTS ▪ ICE connectivity has evolved beyond SFTI, which is now part of the expanded ICE Global Network ▪ ICE Global Network is meeting demand for an expanding range of data and content for global markets ▪ Delivers mission-critical
Slide 13: Consistent Track Record of Growth
CONSISTENT TRACK RECORD OF GROWTH 1Q18 Highlights Net revenues +5% y/y (1) $2.97 Organic data revenue +6% y/y Adjusted EPS $2.79 (1) Net trading & clearing revenue +11% y/y (1) (1) $2.43 Adj. Op Income +9% y/y R 18% (1) CAG Adj. EPS +22% y/y 7 - '1 '06 $1.92 (1) (1) $1.68 $1.50 $1.38 $1.07 $0.83 $0.
Slide 14: Appendix
APPENDIX Intercontinental Exchange® | 14
Slide 15: ASV to Organic ASV
ASV TO ORGANIC ASV (in millions) 1Q17(4) 2Q17 3Q17 4Q17 1Q18 ASV(1) $1,728 $1,765 $1,776 $1,812 $1,875 Adjusted for: Acquisitions, divestitures & wind down of acq. businesses(2) (31) (30) (23) (14) (49) FX 18 12 7 7 — Organic ASV(3) $1,715 $1,747 $1,760 $1,805 $1,826 (1) ASV is defined as the annual
Slide 16: North American Nat Gas Futures Open Interest
NORTH AMERICAN NAT GAS FUTURES OPEN INTEREST 15,000 NA Nat Gas '15-'18 (HH + Basis) Open CAGR 12% 13,000 Interest continues to grow 11,000 lots in thousands (in millions) '15-'18 9,000 CAGR 4% 7,000 5,000 5 15 5 5 6 16 6 6 7 17 7 7 8 -1 1 -1 -1 1 -1 -1 1 -1 -1 n- p- n- p- n- p- ar ec ar ec ar ec ar
Slide 17: First Quarter 2018 GAAP Results
FIRST QUARTER 2018 GAAP RESULTS INCOME STATEMENT HIGHLIGHTS GAAP GAAP (In millions except per share amounts) 1Q18 1Q17 % Chg Net revenues $1,225 $1,166 5% Operating Expenses $575 $584 (2)% Operating Income $650 $582 12% Operating Margin 53% 50% +3 pts Net Income attributable to ICE $464 $503 (8)% Di
Slide 18: First Quarter 2018 Balance Sheet
FIRST QUARTER 2018 BALANCE SHEET In millions 03/31/2018 12/31/2017 CHANGE Assets Unrestricted Cash $523 $535 $(12) ▪ $523MM unrestricted cash Other Current Assets 56,111 53,027 3,084 Current Assets 56,634 53,562 3,072 ▪ Total debt of $6.9B; Adj. Debt-to- EBITDA(1) of 2.2x PPE (net) 1,235 1,246 (11)
Slide 19: Adjusted Net Income Attributable to ICE and EPS
ADJUSTED NET INCOME ATTRIBUTABLE TO ICE AND EPS 3 Months 3 Months In millions (except per share amounts) Ended 3/31/18 Ended 3/31/17 Net income attributable to ICE $464 $503 Add: Interactive Data transaction and integration costs 12 12 Add: Amortization of acquisition-related intangibles 69 65 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 Three Months Three Months Three Months Ended March 31, Ended March 31, Ended March 31, 2018 2017 2018 2017 2018 2017 Total revenues, less tra
Slide 22: Adjusted EBITDA Reconciliation
ADJUSTED EBITDA RECONCILIATION Trailing 12 Months In millions Ended 3/31/18 Adjusted net income $1,847 Add: Interest expense 194 Add: Adjusted income tax expense (1) 746 Add: Adjusted depreciation and amortization(1) 268 Adjusted EBITDA from Continuing Ops $3,055 Adjusted EBITDA - NGX & BondPoint (p
Slide 23: Adjusted Effective Tax Rate Reconciliation
ADJUSTED EFFECTIVE TAX RATE RECONCILIATION 3 Months Ended 3 Months Ended In millions 3/31/18 3/31/17 Income before income taxes $617 $725 Income tax expense 143 214 Effective tax rate 23% 30% Income before income taxes $617 $725 Add: Interactive Data transaction and integration costs 12 12 Add: Adju