Slide 1: 1Q23 Earnings Supplement
1Q23 Earnings Supplement May 4, 2023 1
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
Slide 3: ICE First Quarter 2023 Earnings Call Participants
ICE First Quarter 2023 Earnings Call Participants Jeff Sprecher Ben Jackson Warren Gardiner Katia Gonzalez Chair & CEO President Chief Financial Officer Manager, Investor Chair, ICE Mortgage Relations Technology 3
Slide 4: 1Q23 ICE Performance
1Q23 ICE Performance in millions except per share amounts Income statement highlights 1Q23 1Q22 % Chg, CC +3 % Record net exchanges Revenues, net $1,896 $1,899 1% revenues, CC Recurring Revenues 953 921 4% Transaction Revenues, net 943 978 (2)% +12 % Adj. Op Expenses $740 $746 —% Adj. Op Income $1,1
Slide 5: 1Q23 Exchanges Performance
1Q23 Exchanges Performance +3 % in millions Revenues, net 1Q23 1Q22 % Chg Const Curr Energy $345 $353 (2)% (1)% Record net revenues, CC Ags 70 61 14% 15% Financials 128 130 (1)% 6% Cash Equities & Equity Options, net 95 99 (4)% (4)% +16 % OTC & Other 101 97 4% 6% Data & Connectivity Services 232 214
Slide 6: 1Q23 Fixed Income & Data Services Performance
1Q23 Fixed Income & Data Services Performance in millions +12 % Record total revenues, CC Revenues 1Q23 1Q22 % Chg Const Curr Fixed Income Execution $32 $15 106% 106% CDS Clearing 101 72 41% 42% Fixed Income Data & Analytics Other Data & Network Services Total Revenues 276 154 277 145 —% 6% —% 8% +1
Slide 7: 1Q23 Mortgage Technology Performance
1Q23 Mortgage Technology Performance Top 5 global bank to replace in-house solution in millions with Encompass Revenues 1Q23 1Q22 % Chg Origination Tech $167 $203 (18)% Closing Solutions 40 72 (45)% ~70 % Data & Analytics 21 20 10% Other 8 12 (30)% Total Revenues $236 $307 (23)% Mix of recurring rev
Slide 8: Secular Tailwinds Driving Growth Across Asset Classes
Secular Tailwinds Driving Growth Across Asset Classes Secular Tailwinds Growth Across ICE Platform ICE TTM Rev • Connectivity to ~85% of U.S. mortgages drives cross-sell Mortgage • Analog to digital conversion across the workflow • End-to-end platform drives efficiencies across the ecosystem • $1.1B
Slide 9: Consistent Track Record of Growth
Consistent Track Record of Growth 1Q23 Highlights $5.30 $5.06 Net revenues +1% y/y, CC Recurring revenues +4% y/y, CC $4.41 Record exchanges revenues +3% y/y, CC Record FIDS revenues +12% y/y, CC $3.77 Record adj. op income +1% y/y, CC $3.51 $2.93 $2.76 $2.42 $1.93 $1.68 $1.50 $1.41 $1.38 $1.07 $0.8
Slide 10: Appendix
Appendix 10
Slide 11: Adjusted Operating Expense
Adjusted Operating Expense Three Months Ended Three Months Ended in millions March 31, 2023 March 31, 2022 GAAP Adjusted GAAP Adjusted Compensation and benefits $ 352 $ 352 $ 359 $ 359 Technology and communication 172 172 175 175 Professional services 28 28 34 34 Rent and occupancy 20 20 21 21 Acqui
Slide 12: Adjusted Non-Operating Income/Expense Reconciliation
Adjusted Non-Operating Income/Expense Reconciliation in millions 1Q23 4Q22 3Q22 2Q22 1Q22 Other Income / (Expense), net $(35) $(190) $(1,097) $23 $(58) Less: Gain on sale of equity investments — — — (41) — Add: Net losses from and impairment of unconsolidated investees 35 188 1,095 15 42 Add: Other
Slide 13: Adjusted Effective Tax Rate Reconciliation
Adjusted Effective Tax Rate Reconciliation Three Months Three Months In millions Ended 3/31/2023 Ended 3/31/2022 Income before income taxes $849 $832 Income tax expense 175 165 Effective tax rate 21% 20% Income before income taxes $849 $832 Add: Amortization of acquisition-related intangibles 150 15
Slide 14: Adjusted Free Cash Flow Calculation
Adjusted Free Cash Flow Calculation Three Months Ended Three Months Ended in millions March 31, 2023 March 31, 2022 Cash flow from operations $653 $756 Less: Capital expenditures and capitalized software development costs (85) (103) Add: Section 31 fees, net 105 7 Adjusted free cash flow $673 $660 1
Slide 15: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Twelve Months in millions Ended 3/31/2023 Adjusted net income(1) $2,961 Add: Adjusted interest expense(1) 468 Add: Adjusted income tax expense(1) 905 Add: Adjusted depreciation and amortization(1) 430 Adjusted EBITDA from Continuing Ops $4,764 Debt, as reported $18,123
Slide 16: ICE Summary Balance Sheet
ICE Summary Balance Sheet in millions BALANCE SHEET 03/31/2023 12/31/2022 CHANGE Assets Unrestricted Cash $2,069 $1,799 $270 ▪ $2.1B unrestricted cash Other Current Assets 112,267 155,148 (42,881) Current Assets 114,336 156,947 (42,611) ▪ Total debt of $18.1B; Adj. Debt-to- EBITDA(1) of 2.8x PPE (ne
Slide 17: Fixed Income & Data Supplemental Data
Fixed Income & Data Supplemental Data Annual Subscription Value (ASV) in millions 1Q23 4Q22 3Q22 2Q22 1Q22 ASV(1) $1,708 $1,682 $1,643 $1,660 $1,665 Adjusted for: FX — 3 20 3 (12) ASV, CC 1,708 1,685 1,663 1,663 1,653 17 (1) ASV is defined as the annual value of subscriptions under contract for the
Slide 18: Average Daily Volume & Rate Per Contract (RPC) Trends
Average Daily Volume & Rate Per Contract (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 18 ADV RPC ADV RPC
Slide 19: Average Daily Volume & Open Interest (OI) Trends
Average Daily Volume & Open Interest (OI) Trends lots in thousands Energy ADV & OI Ags ADV & OI ADV OI ADV OI ADV OI ADV OI Interest Rates ADV & OI OI ADV Total Financials ADV & OI OI 19 ADV OI ADV OI
Slide 20: GAAP Results
GAAP Results INCOME STATEMENT HIGHLIGHTS in millions except per share amounts GAAP 1Q23 GAAP 1Q22 % Chg Net revenues $1,896 $1,899 —% Operating Expenses $927 $907 2% Operating Income $969 $992 (2)% Operating Margin 51% 52% (1 pt) Net Income attributable to ICE $655 $657 —% Diluted EPS $1.17 $1.16 1%
Slide 21: Adjusted Operating Income, Operating Margin & Operating Expense Reconciliation
Adjusted Operating Income, Operating Margin & Operating Expense Reconciliation Fixed Income and Data Services Mortgage Technology in millions Exchanges Segment Segment Segment Consolidated Three Months Ended Three Months Ended Three Months Ended Three Months Ended March 31, March 31, March 31, March
Slide 22: Adjusted Net Income & EPS
Adjusted Net Income & EPS Three Months Ended Three Months Ended in millions except per share amounts March 31, 2023 March 31, 2022 Net income attributable to ICE $ 655 $ 657 Add: Amortization of acquisition-related intangibles 150 153 Add: Transaction and integration costs 21 8 Less: Net interest in