Slide 1: 3Q18 Earnings Supplement
Intercontinental Exchange Earnings Supplement Third Quarter 2018 October 31, 2018 3Q18 Earnings Supplement October 31, 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 3Q18 Earnings Call Participants
ICE 3Q18 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: 3Q18 Highlights
3Q18 HIGHLIGHTS in millions except per share amounts INCOME STATEMENT Solid operating performance HIGHLIGHTS 3Q18 3Q17 % Chg Net Revenues $1,200 $1,146 5% Net revenue Data Revenue @ constant currency 5% +5% y/y +6% y/y org, CC Adj. Op Expenses $521 $479 9% Adj. EPS +16% y/y Adj. Op Income $679 $667
Slide 5: 3Q18 Trading & Clearing Segment
3Q18 TRADING & CLEARING SEGMENT ▪ 3Q18 emissions average daily volume (ADV) +67% y/y, ags ADV +16% y/y, Gilt ADV +25% y/y, ▪ Record September emissions and MSCI ADV; September natural gas ADV +16% y/y 72.7 ▪ Launched Permian WTI contract and one and three month SOFR contracts 67.8 ▪ October MTD volu
Slide 6: 3Q18 Data & Listings Segment
3Q18 DATA & LISTINGS SEGMENT ▪ Total data revenue growth accelerated to +6% y/y, org CC Annual Subscription Value (ASV) ▪ Pricing & Analytics (P&A) revenue +7.5% y/y, org CC $1,902 ▪ ASV +7% y/y, org CC entering 4Q18; P&A ASV +8% y/y ▪ 3Q18 ICE Global Network capacity +12% y/y $1,863 $ (Millions) ▪
Slide 7: NYSE YTD Performance
NYSE YTD PERFORMANCE YTD 3Q18 vs. YTD 3Q17 % Chg Organic Const Curr NYSE YTD Highlights Revenue: ▪ Total NYSE revenue +6% y/y, organic, CC Trading & Clearing, net 9% 8% ▪ NYSE is home to 23 of last 25 IPOs over $1 billion Total NYSE Data Services 3% 3% NYSE Unique Solutions Listings 3% 6% Seven uniq
Slide 8: Advancing Fixed Income Workflows
ADVANCING FIXED INCOME WORKFLOWS Workflow ICE Solutions Inefficiencies ▪ ICE ETF Hub - Fragmented, inefficient centralized industry create-redeem process for platform with standard fixed income ETFs protocols for primary market trading ▪ ICE Bonds - offering Trading frictions Click-to-Trade, RFQ and
Slide 9: Technology, Distribution & Content Driving Growth
TECHNOLOGY, DISTRIBUTION & CONTENT DRIVING GROWTH ▪ Fixed income workflow efficiencies ▪ ICE Mortgage Services Future ▪ Digital asset infrastructure Growth ▪ Analytics & indices Opportunities ▪ Permian WTI, SONIA, SOFR & FAANG ▪ Global benchmark contracts in critical asset classes Core Mission-Criti
Slide 10: Consistent Track Record of Growth
CONSISTENT TRACK RECORD OF GROWTH YTD '18 Highlights (1) Net revenues +5% y/y $2.97 (1) Adjusted EPS $2.79 (1) Adj. Op Income +6% y/y (1) $2.65 Adj. EPS +19% y/y(1) $2.43 (1) R 18% $2.22 (1) G 7 CA (1) -' 1 $1.92 '06 (1) $1.68 $1.50 $1.38 $1.07 $0.83 $0.85 $0.68 $0.48 (2) (2) 2006 2007 2008 2009 201
Slide 11: Appendix
APPENDIX Intercontinental Exchan
Slide 12: GAAP to Organic Data Revenue
GAAP TO ORGANIC DATA REVENUE in millions 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 Data Revenue (as reported) $520 $521 $518 $525 $520 $526 $530 Adjusted for: 2017 Divestitures & wind down of acq. businesses(1) (41) (27) (27) (21) — — — Acquisitions(2) — — — — (13) (10) (11) Organic Revenue $479 $494 $491
Slide 13: ASV to Organic ASV
ASV TO ORGANIC ASV in millions 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 ASV(1) $1,728 $1,765 $1,776 $1,812 $1,875 $1,883 $1,902 Adjusted for: Acquisitions, divestitures & wind down of acq. businesses(2) (31) (30) (23) — (49) (37) (39) FX 6 — (6) (7) (14) (2) — Organic ASV(3) $1,703 $1,735 $1,747 $1,805 $1
Slide 14: Data & Listings Supplemental Data
DATA & LISTINGS SUPPLEMENTAL DATA ▪ YTD18 Pricing & Analytics signings +24% y/y; Americas +21% y/y, EMEA +34% y/y, APAC +23% y/y 3Q18 Organic, CC Data Revenue EMEA APAC Organic Const in millions 3Q18 % Chg Organic Curr 4% 19% Revenue: Pricing and Analytics (P&A) $263 9% 7% 7% Exchange Data 146 7% 5%
Slide 15: Solid Average Daily Volume and RPC Trends
SOLID AVERAGE DAILY VOLUME AND RPC TRENDS lots in thousands Energy ADV & RPC Ags ADV & RPC ADV RPC ADV RPC 2,900 1.50 500 3.00 2,600 1.00 400 2.00 2,300 0.50 300 1.00 2,000 0.00 200 0.00 4Q17 1Q18 2Q18 3Q18 4Q17 1Q18 2Q18 3Q18 ADV RPC ADV RPC ADV Interest Rates ADV & RPC RPC ADV Total Financials ADV
Slide 16: 3Q18 GAAP Results
3Q18 GAAP RESULTS GAAP GAAP INCOME STATEMENT HIGHLIGHTS GAAP GAAP YTD YTD in millions except per share amounts 3Q18 3Q17 % Chg 9/30/18 9/30/17 % Chg Net revenues $1,200 $1,146 5% $3,671 $3,492 5% Operating Expenses $598 $550 9% $1,764 $1,705 4% Operating Income $602 $596 1% $1,907 $1,787 7% Operatin
Slide 17: 3Q18 Balance Sheet
3Q18 BALANCE SHEET in millions 09/30/2018 12/31/2017 CHANGE Assets Unrestricted Cash $515 $535 $(20) ▪ $515M unrestricted cash Other Current Assets 60,780 53,027 7,753 Current Assets 61,295 53,562 7,733 ▪ Total debt of $7.7B; Adj. Debt-to- EBITDA(1) of 2.5x PPE (net) 1,206 1,246 (40) Other Non-Curre
Slide 18: Adjusted Net Income Attributable to ICE and EPS
ADJUSTED NET INCOME ATTRIBUTABLE TO ICE AND EPS 3 Months 3 Months 9 Months 9 Months in millions except per share amounts Ended 9/30/18 Ended 9/30/17 Ended 9/30/18 Ended 9/30/17 Net income attributable to ICE $458 $371 $1,377 $1,293 Add: Interactive Data transaction and integration costs and acquisit
Slide 19: 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 NY
Slide 20: Adjusted Operating Income, Operating Margin & Operating Expense Reconciliation
ADJUSTED OPERATING INCOME, OPERATING MARGIN & OPERATING EXPENSE RECONCILIATION Trading and Clearing Data and Listings in millions Segment Segment Consolidated Three Months Ended Three Months Ended Three Months Ended September 30, September 30, September 30, 2018 2017 2018 2017 2018 2017 Total revenu
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 Nine Months Ended Nine Months Ended Nine Months Ended September 30, September 30, September 30, 2018 2017 2018 2017 2018 2017 Total revenues,
Slide 22: Adjusted EBITDA Reconciliation
ADJUSTED EBITDA RECONCILIATION Trailing 12 Months in millions Ended 9/30/18 Adjusted net income $1,982 Add: Interest expense 223 Add: Adjusted income tax expense (1) 651 Add: Adjusted depreciation and amortization(1) 282 Adjusted EBITDA from Continuing Ops $3,138 Adjusted EBITDA - NGX, BondPoint, CH
Slide 23: Adjusted Effective Tax Rate Reconciliation
ADJUSTED EFFECTIVE TAX RATE RECONCILIATION 3 Months 3 Months in millions Ended 9/30/18 Ended 9/30/17 Income before income taxes $554 $563 Income tax expense 89 186 Effective tax rate 16% 33% Income before income taxes $554 $563 Add: Interactive Data transaction and integration costs and acquisition-