Slide 1: 2Q17 Earnings Supplement
2Q17 Earnings Supplement August 3, 2017 INTERCONTINENTAL EXCHANGE 2Q17 Earnings Supplement August 3, 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 Second Quarter 2017 Earnings Call Participants
ICE Second Quarter 2017 Earnings Call Participants Participants: Jeff Sprecher Chuck Vice Scott Hill Chairman & CEO President & COO Chief Financial Officer Chairman, NYSE Investor Relations: • Warren Gardiner, CFA Vice President, Investor Relations warren.gardiner@theice.com • Mary Caroline O'Neal,
Slide 4: Second Quarter 2017 Highlights
Second Quarter 2017 Highlights ▪ Record quarterly revenues, +4% y/y; record adj. EPS, +9% y/y ▪ 2Q17 constant currency data revenue growth +6%(1) y/y ▪ 2Q17 record futures average daily volume +28% y/y, open interest +12% y/y ▪ NYSE listings leadership; 88% share of U.S. IPO proceeds YTD ▪ Adj. op.
Slide 5: Second Quarter 2017 Performance
Second Quarter 2017 Performance INCOME STATEMENT HIGHLIGHTS (in millions except per share amounts and percentages) 2Q17 2Q16 % Chg Net Revenues $1,178 $1,129 4% Net Revenues in Constant Currency(1) 6% Adj. Operating Expenses $488 $494 (1)% Adj. Operating Income $690 $635 8% Adj. Operating Margin 59%
Slide 6: Second Quarter 2017 Data & Listings Segment
Second Quarter 2017 Data & Listings Segment ▪ Recurring revenues 53% of total ICE revenues ▪ Data revenue +6% y/y in constant currency(2); +4% y/y organic, constant currency(1)(2) ▪ Organic Pricing & Analytics (P&A) revenue +5% y/y in constant currency(1)(2) ▪ Organic Desktops & Connectivity (D&C) r
Slide 7: Growth in Proprietary Data Services
Growth in Proprietary Data Services ▪ ICE data revenues on track to grow at least 6% y/y(2) in constant currency for FY 2017 ▪ 1H17 total new contract signings in EMEA +18% y/y and +15% y/y in Asia Pacific P&A ▪ Entering 3Q17, organic annual subscription value (ASV)(2)(3) +5% y/y; P&A ASV +7% y/y, D
Slide 8: Global Listings Leadership
Global Listings Leadership ▪ NYSE remains the #1 exchange globally with over $19.3B in proceeds raised via 49 IPOs ▪ NYSE has listed 28 of the last 28 operating company IPOs that raised $700 million or more ▪ Global leader in listings and trading of ETFs ▪ NYSE Governance Services divestiture will r
Slide 9: Second Quarter 2017 Trading & Clearing Segment
Second Quarter 2017 Trading & Clearing Segment ▪ Trading & Clearing revenue +6% y/y in constant currency(1) ▪ Record Futures ADV +28% y/y, Energy +22% y/y, EU interest rates +63% y/y; OI +12% y/y ▪ Record ADV quarter for Brent, Sterling, and MSCI contracts ▪ Adj. operating income +6% y/y ▪ July ADV
Slide 10: Strong Futures Volume and OI in 1H17
Strong Futures Volume and OI in 1H17 All figures in thousands Total ADV & OI ADV Total Oil ADV & OI OI ADV OI 6,000 72,000 1,800 12,000 60,000 10,000 4,000 48,000 1,350 8,000 36,000 900 6,000 2,000 24,000 4,000 450 12,000 2,000 0 0 0 0 1H16 1H17 1H16 1H17 Total ADV Total OI Oil ADV Oil OI EU Interes
Slide 11: Operating Margins Distinguish ICE From its Peer Group
Operating Margins Distinguish ICE From its Peer Group ▪ Revenue growth at high-incremental margins delivers strong profit and cash flow growth ▪ Integration, execution, and innovative technology platform supports cost-efficient business expansion 1H17 Trading & Clearing 1H17 Data & Listings Segment
Slide 12: Strong Free Cash Flow Generation & Capital Return
Strong Free Cash Flow Generation & Capital Return 1H17 Free Cash Flow Uses M&A, De-leveraging ▪ 1H17 op. cash flow of $1.1B; FCF $897MM(1) & Other ▪ Achieved leverage target of 2.0x debt-to-EBITDA(2) 21% ▪ Approx. 80% FCF returned to shareholder in 1H17 ~80% ▪ $469MM in shares repurchased in; $76MM
Slide 13: Consistent Growth Driven by Innovation and Execution
Consistent Growth Driven by Innovation and Execution ICE Consolidated Net Revenues Adjusted EPS $2.78(2) $4.5B(1) $2.43(2) A GR C 016 $3.3B(1) % -2 $1.92(2) 19 006 $3.1B(1) 2 $1.68(2) $1.50 $1.49(2) $1.38 $2.3B(1) $1.07 (1) $1.6B $0.85 $1.4B $0.83 $1.3B $1.1B $0.68 $1.0B $0.8B $0.48 $0.6B $0.3B 2006
Slide 14: Leading, Comprehensive Trading, Clearing & Data Solutions
Leading, Comprehensive Trading, Clearing & Data Solutions We leverage our global network to serve the evolving needs of market participants around the world …a leading global operator of exchanges, clearing We are and listings, and a leading provider of data services across global financial and comm
Slide 15: Proprietary Solutions for Mission-Critical Workflow
Proprietary Solutions for Mission-Critical Workflow Distribution: Content & distribution: Global technology infrastructure Clearing and risk management • Trading automation solutions • Unparalled global clearing • Expanding clearing & risk systems framework on common technology • Secure connectivity
Slide 16: ICE Clearing Serves Customers Globally With Local Operations
ICE Clearing Serves Customers Globally With Local Operations Global Flexibility Capital Efficiency Product Innovation • 6 clearing houses in 5 countries • Strong default risk protection • Multi-asset clearing • Operating across time zones & • Cross margining • Over 3,000 products cleared regulatory
Slide 17: ICE's Data Solutions Align With Secular Demand Drivers
ICE's Data Solutions Align With Secular Demand Drivers Growth Drivers ICE Data Services Solutions Feeds Covering 450+ Trading Venues Rising Market Automation Low Latency Connectivity & Colocation Index Services, Continuous Evaluated Pricing Clients receive consolidated real-time exchange data and ho
Slide 18: Global Opportunity To Access Multiple Growth Drivers
Global Opportunity To Access Multiple Growth (1) Drivers Upside remains to meet growing data demand across the globe Rising demand for Demand for international independent, real-time data across all asset information and data classes, growth in fixed capacity income ETFs Americas EMEA Asia % Industr
Slide 19: Consistent Track Record of Revenue & Earnings Growth
Consistent Track Record of Revenue & Earnings Growth ▪ 54% recurring revenue with exposure to volatility, underpinned by best in class operating margins ▪ Rising free cash flow, achieved leverage targets, growing dividends and share repurchases 2Q Highlights Net revenues +6% y/y(2) Data revenue +6%
Slide 20: Appendix
APPENDIX INTERCONTINENTAL EXCHANGE 20
Slide 21: Second Quarter & First Half 2017 GAAP Results
Second Quarter & First Half 2017 GAAP Results INCOME STATEMENT HIGHLIGHTS GAAP GAAP GAAP YTD GAAP YTD (In millions except per share amounts) 2Q17 2Q16 % Chg Jun. '17 Jun '16 % Chg Net revenues $1,178 $1,129 4% $2,342 $2,283 3% Operating Expenses $569 $578 (2)% $1,151 $1,148 —% Operating Income $609
Slide 22: Second Quarter 2017 Balance Sheet
Second Quarter 2017 Balance Sheet In millions 06/30/2017 12/31/2016 CHANGE Assets Unrestricted Cash $398 $407 $(9) ▪ $398MM unrestricted cash Other Current Assets 56,050 56,726 (676) ▪ Total debt of $5.9B; Adj. Debt-to- Current Assets 56,448 57,133 (685) EBITDA(1) of 2.0x PPE (net) 1,161 1,129 32 Ot
Slide 23: Adjusted Net Income Attributable to ICE and EPS
Adjusted Net Income Attributable to ICE and EPS 6 Months 6 Months 3 Months 3 Months Ended Ended In millions (except per share amounts) Ended 6/30/17 Ended 6/30/16 6/30/2017 6/30/2016 Net income attributable to ICE $418 $357 $920 $726 Add: Interactive Data and NYSE transaction and integration costs 8
Slide 24: Adjusted Net Income Attributable to ICE and EPS
Adjusted Net Income Attributable to ICE and EPS 12 Months 12 Months 12 Months 12 Months Ended Ended Ended Ended In millions (except per share amounts) 12/31/16 12/31/15 12/31/14 12/31/13 Net income attributable to ICE $1,422 $1,274 $981 $254 Add: Interactive Data and NYSE transaction and integration
Slide 25: 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, 2017 2016 2017 2016 2017 2016 Total revenues, less transa
Slide 26: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Trailing 12 Months In millions Ended 6/30/17 Adjusted net income $1,702 Add: Income tax expense 616 Add: Income tax expense adjustment on Non-GAAP Items 122 Add: Interest expense 178 Add: Depreciation and amortization(1) 278 Adjusted EBITDA from Continuing Ops $2,896 A
Slide 27: Adjusted Effective Tax Rate Reconciliation
Adjusted Effective Tax Rate Reconciliation 3 Months 3 Months In millions Ended 6/30/17 Ended 6/30/16 Income before income taxes $565 $516 Income tax expense 139 153 Effective tax rate 25% 30% Income before income taxes $565 $516 Add: Interactive Data and NYSE transaction and integration costs 8 7 Ad
Slide 28: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation Free Cash Flow Calculation (In millions) 1H17 1H16 Cash flow from operations 1,098 1,103 Less: Capital expenditures and capitalized software development costs (150) (157) Less: Section 31 fees, net (51) (79) Free cash flow 897 867 28