Slide 1: Fourth Quarter & Full Year 2017 Earnings Supplement
ICE usteO HRNEEE Ice nyse NYSE Intercontinental Exchange’ Earnings Supplement February 7, 2018 Intercontinental Exchange Fourth Quarter & Full Year 2017 Earnings Supplement February 7, 2018
Slide 2: Forward-Looking Statements & Legends
FORWARD-LOOKING STATEMENTS & 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 Fourth Quarter 2017 Earnings Call Participants
ICE FOURTH QUARTER 2017 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 Man
Slide 4: Fourth Quarter 2017 Performance
FOURTH QUARTER 2017 PERFORMANCE in millions except per share amounts Compounding data and volume INCOME STATEMENT HIGHLIGHTS 4Q17 4Q16 % Chg growth Net Revenues(1) $1,144 $1,138 1% 2017 data 2017 Futures revenue Adj. Op Expenses $479 $493 (3)% ADV +10% y/y +6% y/y, CC (2) OI +11% y/y Adj. Op Income
Slide 5: Record Annual Capital Return in 2017
RECORD ANNUAL CAPITAL RETURN IN 2017 ▪ $1.4B returned to shareholders in 2017, more than any year in our history ▪ $949MM in shares repurchased ▪ $476MM in dividends, +16% y/y ▪ Repaid $275MM in debt in 2017, reducing leverage to 2.1x debt-to-EBITDA(1) ▪ 1Q18 dividend +20% y/y, $1.2B share repurchas
Slide 6: Fourth Quarter 2017 Data & Listings Results
FOURTH QUARTER 2017 DATA & LISTINGS RESULTS ▪ Closed on acquisition of ICE BofAML indices establishing ICE as 2nd largest fixed income index provider ▪ Transitioned ICE BofAML reference data to ICE Data Services ▪ Growth in segment underpinned by continued demand for data and information services 4Q
Slide 7: Data Growth Thesis Proving Out
DATA GROWTH THESIS PROVING OUT ▪ Organic annual subscription value, or ASV, +6%(1) y/y entering 1Q18 ▪ Global 2017 Pricing & Analytics (P&A) signings +12% y/y; ~40% of signings from newer growth products ▪ Capacity growth +20% y/y on SFTI, our exclusive distribution network AMERICAS(2) EMEA APAC 73%
Slide 8: Fourth Quarter 2017 Trading & Clearing Results
FOURTH QUARTER 2017 TRADING & CLEARING RESULTS ▪ 4Q17 Brent ADV +7% y/y, EU & UK interest rates +2% y/y ▪ 2017 annual ADV +10% y/y, Open Interest (OI) +11% y/y ▪ Annual ADV record in Energy, Brent, Sterling and MSCI; OI record for Total Oil ▪ January 2018 ADV +12% y/y, led by Interest Rates +28% y/y
Slide 9: Strong Annual Futures Growth Trends
STRONG ANNUAL FUTURES GROWTH TRENDS All figures in thousands ICE Futures Total ADV & OI ADV Global Oil ADV & OI OI ADV OI 5,400 70,000 1,800 12,000 ADV 52,500 1,350 ADV 3,600 +10% 8,000 +14% 35,000 900 OI OI 1,800 +11% 4,000 17,500 +8% 450 0 0 0 0 2015 2016 2017 2015 2016 2017 Total ADV Total OI Oil
Slide 10: 2018 Guidance
2018 GUIDANCE Financial Guidance Expenses/Synergies ▪ Data revenue 6-7% organic growth (see appendix ▪ Adj. expenses $2.00 - $2.05B for FY18 for 2017 GAAP to organic bridge) ▪ Expect to deliver synergies of $30MM in ▪ Cap ex/software $300 - $330MM; down ~10% y/y 2018 ▪ Adj. effective tax rate 22% -
Slide 11: A Proven Model for Sustainable Growth
A PROVEN MODEL FOR SUSTAINABLE GROWTH Strategic Investments Balanced Portfolio ▪ New product development Balanced ▪ 54% of total revenue is recurring ▪ Expand range of content and ▪ Leading global benchmarks, distribution solutions Recurring & markets and data across asset ▪ Strategic M&A and allian
Slide 12: A Foundation for Growth
A FOUNDATION FOR GROWTH World's Largest Energy Marketplace ▪ 2017 energy revenue over $900MM, +5% y/y; ADV +8% y/y; OI +6% y/y ▪ Record annual energy volume in 2017 ▪ Positioned for growth as Nat Gas begins to globalize; largely commercial client base and leading presence in the physical Nat Gas mar
Slide 13: World's Largest & Most Diverse Energy Market
WORLD'S LARGEST & MOST DIVERSE ENERGY MARKET ▪ 21st consecutive record volume year in Brent, WTI ADV +14% y/y; 500+ related oil products ▪ January gasoil ADV +19% y/y; number of refined oil products continuing to grow ▪ NA Nat Gas basis market products at record volume and OI levels in January ▪ Lea
Slide 14: Secular Growth Driving Demand for ICE Solutions
SECULAR GROWTH DRIVING DEMAND FOR ICE SOLUTIONS Futures & OTC Business Distribution & Content Capital Markets Expanding Futures & OTC Demand for Information Listings Leadership Continues Markets Driving Product Expansion ▪ NGX acquisition adds to Nat Gas ▪ Launch of Cryptocurrency Data ▪ #1 exchange
Slide 15: Consistent Track Record of Growth
CONSISTENT TRACK RECORD OF GROWTH ▪ 12th consecutive year of record revenue and adj. EPS ▪ 1Q18 dividend +20% y/y; $1.2B share repurchase authorization, +20% vs. prior authorization FY 2017 Highlights ICE Adj. EPS (2) (1) Record net revenues (1) $2.95 $2.78 Record data revenue (1) Record adj. op inc
Slide 16: Appendix
APPENDIX Intercontinental Exchange® 6
Slide 17: GAAP to Organic Data Revenue Growth
GAAP TO ORGANIC DATA REVENUE GROWTH in millions $2,084 ($90) ($26) $1,968 +6 - 7% Organic Growth 2017 Acquisitions (1) (2) (3) 2017 GAAP 2017 Divestitures Wind down of 2017 Organic 2018 Data Rev acq businesses Data Rev (1) Divestitures include the sale of IDMS in 1Q17 and Trayport in 4Q17 (2) Wind d
Slide 18: ICE Summary Balance Sheet
ICE SUMMARY BALANCE SHEET in millions BALANCE SHEET 12/31/2017 12/31/2016 CHANGE Assets ▪ $535MM unrestricted cash Unrestricted Cash $535 $407 $128 Other Current Assets 53,027 56,726 (3,699) ▪ Total debt of $6.1B; Adj. Debt-to- Current Assets 53,562 57,133 (3,571) EBITDA(1) of 2.1x PPE (net) 1,246 1
Slide 19: Adjusted Net Income from Continuing Ops and EPS
ADJUSTED NET INCOME FROM CONTINUING OPS AND EPS FROM CONTINUING OPS 3 Months 3 Months Ended Ended 12 Months 12 Months in millions (except per share amounts) 12/31/17 12/31/16 Ended 12/31/17 Ended 12/31/16 Net income attributable to ICE $1,225 $352 $2,514 $1,422 Add: Interactive Data and NYSE transac
Slide 20: Adjusted Net Income from Continuing Ops and EPS
ADJUSTED NET INCOME FROM CONTINUING OPS AND EPS FROM CONTINUING OPS 12 Months 12 Months 12 Months in millions (except per share amounts) Ended 12/31/15 Ended 12/31/14 Ended 12/31/13 Net income attributable to ICE $1,274 $981 $254 Add: NYSE and Interactive Data transaction and integration costs and a
Slide 21: Adjusted Operating Income, Operating Margin & Operating Expense Reconciliation
ADJUSTED OPERATING INCOME, OPERATING MARGIN & OPERATING EXPENSE RECONCILIATION 3 Months Ended 3 Months Ended 12 Months Ended 12 Months Ended in millions 12/31/17 12/31/16 12/31/17 12/31/16 Total revenues, less transaction-based expenses $1,144 $1,138 $4,629 $4,499 Total operating expenses 552 580 2,
Slide 22: Adjusted EBITDA Reconciliation
ADJUSTED EBITDA RECONCILIATION 12 Months Ended in millions 12/31/17 Adjusted net income $1,752 Add: Income tax benefit (25) Add: Income tax expense adjustment on Non-GAAP Items 797 Add: Interest expense 187 Add: Depreciation and amortization(1) 268 Adjusted EBITDA $2,979 Debt, as reported 6,100 Add:
Slide 23: Adjusted Effective Tax Rate Reconciliation
ADJUSTED EFFECTIVE TAX RATE RECONCILIATION 3 Months 3 Months 12 Months 12 Months Ended Ended Ended Ended in millions 12/31/17 12/31/16 12/31/17 12/31/16 Income before income tax expense (benefit) $669 $530 $2,517 $2,029 Less: Income tax expense (benefit) (562) 171 (25) 580 Net Income $1,231 $359 $2,