Intercontinental Exchange Inc. · NYSE:ICE

Intercontinental Exchange — Q1 2022 Earnings Presentation

21 slides from Intercontinental Exchange's earnings presentation, May 5, 2022

  1. Slide 1: 1Q22 Earnings Supplement

    1Q22 Earnings Supplement May 5, 2022 1

  2. 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

  3. Slide 3: ICE First Quarter 2022 Earnings Call Participants

    ICE First Quarter 2022 Earnings Call Participants Jeff Sprecher Ben Jackson Warren Gardiner Joe Tyrrell Mary Caroline O'Neal Katia Gonzalez Chair & CEO President Chief Financial Officer President, Director, Investor Senior Analyst, Investor ICE Mortgage Technology Relations Relations 3

  4. Slide 4: 1Q22 ICE Performance

    1Q22 ICE Performance in millions except per share amounts Income statement highlights 1Q22 1Q21 % Chg +9 % Total recurring revenue, CC Revenues, net(1) $1,899 $1,797 6% +9 % Recurring Revenues(1) 921 845 9% Transaction Revenues, net(1) 978 952 4% Adj. Op Income, CC Adj. Op Expenses(1) $746 $729 3% A

  5. Slide 5: 1Q22 Exchanges Performance

    1Q22 Exchanges Performance in millions Const Global natural gas + +30 % Revenue, net 1Q22 1Q21 % Chg Curr Environmentals Energy $353 $310 14% 16% revenue, CC Ags 61 59 3% 4% Financials 130 105 24% 26% Cash Equities & Equity Options, net 99 102 (3)% (3)% +36 % OTC & Other 97 77 25% 28% Interest rate

  6. Slide 6: 1Q22 Fixed Income & Data Services Performance

    1Q22 Fixed Income & Data Services Performance in millions Revenue 1Q22 1Q21 % Chg Const Curr +6.2 % Annual subscription value (ASV), CC Fixed Income Execution $15 $14 9% 9% CDS Clearing 72 55 32% 33% Fixed Income Data & Analytics 277 264 5% 5% Double- Index revenue Other Data & Network Services 145

  7. Slide 7: 1Q22 Mortgage Technology Performance

    1Q22 Mortgage Technology Performance in millions Revenue 1Q22 1Q21 % Chg +24 % Recurring revenue Origination Tech $203 $254 (20)% Closing Solutions 70 70 —% ~51 % Data & Analytics 20 18 6% Mix of recurring Other 14 13 13% revenue Total Revenue $307 $355 (13)% Recurring Revenue 156 125 24% Transactio

  8. Slide 8: Consistent Track Record of Growth

    Consistent Track Record of Growth 1Q22 Highlights $5.15 Net revenues +6% y/y, CC Recurring revenues +9% y/y, CC $4.41 Adj. op income +9% y/y, CC Adj. EPS + 7% y/y $3.79 $3.53 $2.93 $2.76 $2.42 $1.93 $1.68 $1.50 $1.43 $1.38 $1.34 $1.07 $0.83 $0.85 $0.68 $0.48 2006 2007 2008 2009 2010 2011 2012 2013 2

  9. Slide 9: Appendix

    Appendix 9

  10. Slide 10: Adjusted Operating Expense

    Adjusted Operating Expense Three Months Ended March 31, Three Months Ended March 31, in millions 2022 2021 GAAP Adjusted GAAP Adjusted Compensation and benefits $ 359 $ 359 $ 354 $ 354 Technology and communication 175 175 162 162 Professional services 34 34 44 44 Rent and occupancy 21 21 21 21 Acqui

  11. Slide 11: Adjusted Non-Operating Income/Expense Reconciliation

    Adjusted Non-Operating Income/Expense Reconciliation in millions 1Q22 4Q21 3Q21 2Q21 1Q21 Other Income / (Expense) $(58) $1,330 $54 $1,239 $48 Less: Gain on deconsolidation of Bakkt — (1,419) — — — Less: Gain on value of Euroclear equity investment — — (34) — — Less: Gain on sale of Coinbase equity

  12. Slide 12: Adjusted Effective Tax Rate Reconciliation

    Adjusted Effective Tax Rate Reconciliation Three Months Three Months in millions Ended 3/31/2022 Ended 3/31/2021 Income before income taxes $832 $833 Income tax expense 165 183 Effective tax rate 20% 22% Income before income taxes $832 $833 Add: Amortization of acquisition-related intangibles 153 15

  13. Slide 13: Free Cash Flow Calculation

    Free Cash Flow Calculation Three Months Ended Three Months Ended in millions March 31, 2022 March 31, 2021 Cash flow from operations $756 $734 Less: Capital expenditures and capitalized software development costs (103) (116) Add: Section 31 fees, net 7 84 Free cash flow $660 $702 13

  14. Slide 14: Adjusted EBITDA Reconciliation

    Adjusted EBITDA Reconciliation Twelve Months Ended in millions 3/31/2022 Adjusted net income(1) $2,956 Add: Adjusted interest expense(1) 415 Add: Adjusted income tax expense(1) 880 Add: Adjusted depreciation and amortization(1) 391 Adjusted EBITDA from Continuing Ops $4,642 Debt, as reported $14,178

  15. Slide 15: ICE Summary Balance Sheet

    ICE Summary Balance Sheet in millions BALANCE SHEET 03/31/2022 12/31/2021 CHANGE Assets Unrestricted Cash $638 $607 $31 ▪ $638M unrestricted cash Other Current Assets 168,740 153,693 15,047 Current Assets 169,378 154,300 15,078 ▪ Total debt of $14.2B; Adj. Debt-to- EBITDA(1) of 3.1x PPE (net) 1,733

  16. Slide 16: Fixed Income & Data Supplemental Data

    Fixed Income & Data Supplemental Data Annual Subscription Value (ASV) in millions 1Q22 4Q21 3Q21 2Q21 1Q21 ASV(1) $1,672 $1,646 $1,624 $1,602 $1,580 Adjusted for: FX (7) (7) (7) (14) (13) ASV, CC $1,665 $1,639 $1,617 $1,588 $1,567 16 (1) ASV is defined as the annual value of subscriptions under cont

  17. Slide 17: 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 ADV RPC ADV RPC Interest Rates ADV & RPC RPC ADV Total Financials ADV & RPC RPC 17 ADV RPC ADV RPC

  18. Slide 18: Average Daily Volume and OI Trends

    Average Daily Volume and OI Trends lots in thousands Energy ADV & OI ADV OI ADV Ags ADV & OI OI ADV OI ADV OI Interest Rates ADV & OI OI ADV Total Financials ADV & OI OI 18 ADV OI ADV OI

  19. Slide 19: GAAP Results

    GAAP Results INCOME STATEMENT HIGHLIGHTS in millions except per share amounts GAAP 1Q22 GAAP 1Q21 % Chg Net revenues $1,899 $1,797 6% Operating Expenses $907 $905 —% Operating Income $992 $892 11% Operating Margin 52% 50% 2 pts Net Income attributable to ICE $657 $646 2% Diluted EPS $1.16 $1.14 2% 1

  20. Slide 20: Adjusted Operating Income, Operating Margin & Operating Expense Reconciliation

    Adjusted Operating Income, Operating Margin & Operating Expense Reconciliation Fixed Income and Data Mortgage Technology in millions Exchanges Segment Services Segment Segment Consolidated Three Months Ended Three Months Ended Three Months Ended Three Months Ended March 31, March 31, March 31, March

  21. Slide 21: Adjusted Net Income & EPS

    Adjusted Net Income & EPS Three Months Ended Three Months Ended in millions except per share amounts March 31, 2022 March 31, 2021 Net income attributable to ICE $ 657 $ 646 Add: Amortization of acquisition-related intangibles 153 158 Add: Transaction and integration costs 8 18 Add: Accrual relating

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