Slide 1: 4Q20 Earnings Supplement
4Q20 Earnings Supplement February 4, 2021
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 Fourth Quarter 2020 Earnings Call Participants
ICE FOURTH QUARTER 2020 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: 4Q20 Record Performance
4Q20 RECORD PERFORMANCE in millions except per share amounts INCOME STATEMENT Record 4Q Performance HIGHLIGHTS 4Q20 4Q19 % Chg Net Revenues $1,671 $1,298 29% 4Q20 pro forma net revenues Net Revenues, pro forma $1,671 $1,465 14% +14% y/y Adj. Op Expenses $712 $570 25% Adj. Op Expenses, pro forma $712
Slide 5: 4Q20 ICE Exchanges Performance
4Q20 ICE EXCHANGES PERFORMANCE ▪ 4Q20 energy revenues +6% y/y, CC; cash equities & options revenues +21% ▪ January Energy OI +4% y/y; natural gas OI +11% y/y; environmentals OI +5% y/y ▪ Expect 1Q21 recurring revenues of $310 to $315 million Revenue Mix in millions $871 $816 Revenue, net Const $ (in
Slide 6: 4Q20 Fixed Income & Data Services Performance
4Q20 FIXED INCOME & DATA SERVICES PERFORMANCE ▪ Fixed income data & analytics revenue +7% y/y driven by PRD & Indices ▪ Other data and network services revenue +5% y/y driven by ICE Global Network & feeds ▪ ASV +5.7% y/y, CC entering 1Q21; expect recurring revenue growth of 5-6%, CC in 2021 • Expect
Slide 7: 4Q20 ICE Mortgage Technology Performance
4Q20 ICE MORTGAGE TECHNOLOGY PERFORMANCE ▪ Analog to digital conversion, accelerating millennial home buying & favorable financing conditions driving strong transaction revenues ▪ Increased customer consumption & new customer adoption driving growth in recurring revenues ▪ Expect 1Q21 recurring reve
Slide 8: 2020 Performance & 2021 Guidance
2020 PERFORMANCE & 2021 GUIDANCE in millions except per share amounts Expenses INCOME STATEMENT HIGHLIGHTS 2020 2019 % Chg ▪ FY adj. expenses $2.83B - $2.88B Net Revenues $6,036 $5,202 16% ▪ ($50) million reduction in Bakkt expense ▪ $20 million D&A increase in Mortgage segment Adj. Op Expenses $2,4
Slide 9: A Leading Global Energy & Environmental Network
A LEADING GLOBAL ENERGY & ENVIRONMENTAL NETWORK Total Energy Revenue TTF ADV & OI in millions lots in thousands +13% y/y ADV OI 150 3,000 $1,120 CAGR +7% 125 2,500 ADV CAGR $992 +44% $965 $909 100 2,000 OI CAGR $865 +39% $804 75 1,500 50 1,000 25 500 — 2015 2016 2017 2018 2019 2020 2015 2016 2017 20
Slide 10: An End-to-End Leader in Digital Workflow Solutions
AN END-TO-END LEADER IN DIGITAL WORKFLOW SOLUTIONS ICE Mortgage Technology Offerings Span the Full Workflow Lead Generation Processing & Pre-Closing Closing Post-Closing Secondary & Underwriting Application ~$10 billion Total Addressable Market ICE Mortgage Tech: ~$1.2 billion 10
Slide 11: Data Expertise Driving Compounding Growth
DATA EXPERTISE DRIVING COMPOUNDING GROWTH Annual Subscription Value (ASV) +5.7% y/y, CC $1,600 $1,500 $1,400 in millions $1,300 $1,200 $1,100 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 11
Slide 12: Consistent Track Record of Growth
CONSISTENT TRACK RECORD OF GROWTH 2020 Highlights Record net revenue +16% y/y (1) Pro forma net revenue +14% y/y Adjusted EPS $4.51 Record adj. op income +18% y/y (1) Record adj. EPS +16% y/y $3.88 (1) Record Op Cash Flow $2.9B $3.59 7% Capital Return of ~$2B R1 C AG (1) - '20 (1) $2.97 '06 $2.79 (1
Slide 13: Appendix
13 APPENDIX Lice:
Slide 14: 4Q20 Performance (Former Segment Reporting)
4Q20 PERFORMANCE (FORMER SEGMENT REPORTING) Former Trading & Clearing Segment Former Data & Listings Segment Const Const $ (in millions) 4Q20 4Q19 % Chg Curr $ (in millions) 4Q20 4Q19 % Chg Curr Revenue, net: Revenue: Energy $262 $243 8% 6% Pricing and Analytics $292 $274 6% 6% Ags & Metals 48 57 (1
Slide 15: Adjusted Operating Expense
ADJUSTED OPERATING EXPENSE Three Months Ended Three Months Ended Twelve Months Ended Twelve Months Ended December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 GAAP Adjusted GAAP Adjusted GAAP Adjusted GAAP Adjusted Compensation and benefits $ 339 $ 339 $ 274 $ 274 $ 1,188 $ 1,188 $
Slide 16: Adjusted Other Income/Expense Reconciliation
ADJUSTED OTHER INCOME/EXPENSE RECONCILIATION in millions 4Q20 3Q20 2Q20 1Q20 4Q19 3Q19 2Q19 1Q19 Other Income / (Expense) OCC equity investment $(13) $49 $18 $17 $11 $15 $9 $27 Euroclear dividends — — — — 19 — — — Investment gains / (losses) 55 — — — — — (2) — FX gains / (losses) (3) (3) (3) 4 (3) (
Slide 17: Adjusted Effective Tax Rate Reconciliation
ADJUSTED EFFECTIVE TAX RATE RECONCILIATION Three Months Three Months Twelve Months Twelve Months Ended Ended Ended Ended in millions 12/31/2020 12/31/2019 12/31/2020 12/31/2019 Income before income tax expense (benefit) $674 $587 $2,766 $2,481 Less: Income tax expense (benefit) 146 134 658 521 Effec
Slide 18: Free Cash Flow Calculation
FREE CASH FLOW CALCULATION Twelve Months Ended Twelve Months Ended in millions 12/31/2020 12/31/2019 Cash flow from operations $2,881 $2,659 Less: Capital expenditures and capitalized software development costs (410) (305) Less: Section 31 fees, net (69) (34) Free cash flow $2,402 $2,320 18
Slide 19: Adjusted EBITDA Reconciliation
ADJUSTED EBITDA RECONCILIATION Twelve Months Ended in millions 12/31/20 Adjusted net income $2,500 Add: Adjusted interest expense(1) 338 Add: Adjusted income tax expense(1) 751 Add: Adjusted depreciation and amortization(1) 352 Adjusted EBITDA from Continuing Ops $3,941 Pro forma EBITDA (pre acquisi
Slide 20: ICE Summary Balance Sheet
ICE SUMMARY BALANCE SHEET in millions BALANCE SHEET 12/31/2020 12/31/2019 CHANGE Assets ▪ $583M unrestricted cash Unrestricted Cash $583 $841 $(258) Other Current Assets 86,636 67,138 19,498 ▪ Total debt of 16.5B; Adj. Debt-to- Current Assets 87,219 67,979 19,240 EBITDA(1) of 3.9x PPE (net) 1,713 1,
Slide 21: Fixed Income & Data Services Supplemental Data
FIXED INCOME & DATA SERVICES SUPPLEMENTAL DATA Annual Subscription Value (ASV) in millions 4Q20 3Q20 2Q20 1Q20 4Q19 3Q19 2Q19 1Q19 ASV(1) $1,569 $1,538 $1,503 $1,478 $1,475 $1,451 $1,443 $1,431 Adjusted for: FX — 14 24 26 9 26 17 13 ASV, CC $1,569 $1,552 $1,527 $1,504 $1,484 $1,477 $1,460 $1,444 (1)
Slide 22: 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 3,200 1.50 500 2.50 2,800 400 1.25 2.25 2,400 300 2,000 1.00 200 2.00 2017 2018 2019 2020 2017 2018 2019 2020 ADV RPC ADV RPC ADV Interest Rates ADV & RPC RPC ADV Total Financials ADV & RPC RPC 2,400
Slide 23: Average Daily Volume and OI Trends
AVERAGE DAILY VOLUME AND OI TRENDS lots in thousands Energy ADV & OI Ags ADV & OI ADV OI ADV OI 3,200 45,000 500 4,400 2,800 3,300 30,000 400 2,200 2,400 15,000 300 1,100 2,000 0 200 0 2017 2018 2019 2020 2017 2018 2019 2020 ADV OI ADV OI ADV Interest Rates ADV & OI OI ADV Total Financials ADV & OI
Slide 24: GAAP Results
GAAP RESULTS INCOME STATEMENT HIGHLIGHTS GAAP GAAP GAAP GAAP in millions except per share amounts 4Q20 4Q19 % Chg 2020 2019 % Chg Net revenues $1,671 $1,298 29% $6,036 $5,202 16% Operating Expenses $891 $676 32% $3,003 $2,529 19% Operating Income $780 $622 25% $3,033 $2,673 13% Operating Margin 47%
Slide 25: Adjusted Operating Income, Operating Margin & Operating Expense Reconciliation
ADJUSTED OPERATING INCOME, OPERATING MARGIN & OPERATING EXPENSE RECONCILIATION Fixed Income and Data Services Mortgage Technology Exchanges Segment Segment Segment Consolidated Year Ended Year Ended Year Ended December Year Ended December December 31, December 31, 31, 31, 2020 2019 2020 2019 2020 20
Slide 26: Adjusted Operating Income, Operating Margin & Operating Expense Reconciliation
ADJUSTED OPERATING INCOME, OPERATING MARGIN & OPERATING EXPENSE RECONCILIATION Fixed Income and Data Services Mortgage Technology Exchanges Segment Segment Segment Consolidated Three Months Ended Three Months Ended Three Months Ended Three Months Ended December 31, December 31, December 31, December
Slide 27: Adjusted Net Income and EPS
ADJUSTED NET INCOME AND EPS Three Months Three Months Twelve Months Twelve Months Ended Ended Ended Ended 12/31/2020 12/31/2019 12/31/2020 12/31/2019 Net income attributable to ICE common stockholders $ 526 $ 448 $ 2,089 $ 1,933 Add: Amortization of acquisition-related intangibles 153 75 388 309 Add