3Q17 Earnings Presentation October 25, 2017 NASDAQ 3Q17 HIGHLIGHTS - PowerPoint PPT Presentation

3Q17 Earnings Presentation October 25, 2017

NASDAQ 3Q17 HIGHLIGHTS¹ Applied Technology, Innovation, Growth, Resiliency and Total Shareholder Return g g Record Revenues, Information Index Licensing & Market Non-GAAP Op. Inc. Services Services Technology Operating Income: 3Q17 Revenue 3Q17 Revenue YTD'17 Revenues $290 Million Growth Growth +8% Y-o-Y +8% Y-o-Y +9% Y-o-Y +21% Y-o-Y Record Backlog: $805 Million Non-GAAP Nasdaq Futures, Free Cash Flow ex Capital Returns to Shareholders 2 Operating Margin Inc. (NFX) Section 31 Fees 48% in 3Q17 $579 Million $355 Million YTD 3Q17 ADV: 192K, versus +33% Y-o-Y YTD 2017 2017 46% in 3Q16 66% of non-GAAP Open Interest: +22% Y-o-Y Net Income 3.3 Million ¹ Please refer to the appendix for a reconciliation of U.S. GAAP to non-GAAP measures. 2 Refers to share repurchases plus dividends. 2

3Q17 NON-GAAP SUMMARY (1) 3Q17 3Q16 % Δ (US$ millions, except per share) Revenue from non-trading segments (2) • 3Q17 net revenues (3) totaled $607 million, $388 $372 4% +4% Y-o-Y Market Services Net Revenue (3) $219 $213 3% Revenues from non-trading segments (2) ▪ increased 4%, or $16 million y-o-y, with Net Revenues (3) $6 07 $58 5 4% increases in Information Services and Market Technology. Operating Expenses $317 $317 — Net revenues from Market Services (3) ▪ Operating Income $290 $268 8% increased 3%, or $6 million y-o-y, primarily on higher Trade Management Services revenues. Operating Margin 48% 46% — • Subscription and recurring revenue Net Income $18 1 $154 18% businesses (4) constituted 76% of total revenues in 3Q17 . Diluted EPS $1.06 $0.91 16% Diluted Shares Outstanding 170.0 169.5 — 1. Please refer to the appendix for a reconciliation of U.S. GAAP to non-GAAP measures. 2. Represents revenues from our Corporate Services, Information Services and Market Technology segments. 3. Represents revenues less transaction-based expenses. 4. Represents revenues from our Corporate Services, Information Services and Market Technology segments, as well as our Trade Management Services business. 3

ORGANIC REVENUE AND OUTLOOK NASDAQ YEAR-OVER-YEAR REVENUE GROWTH EXCLUDING ACQUISITIONS, CONSTANT CURRENCY (1) 6 % 6 % 8% 5% 5% 5% 4% 4% 4% 6% 3% 3% 4% 2% 3% Non-Trading 2% 2% 0% (2)% 1% Segments (IS, -2% (1)% CS, MT) (2)% -4% (6)% (3)% -6% Market Services -8% (10)% -10% -12% 3Q16 4Q16 1Q17 2Q17 3Q17 2013 2014 2015 2016 2017 YTD NASDAQ MEDIUM-TERM (3-5 YR) ORGANIC REVENUE GROWTH OUTLOOK S&P 500 Information Market Corporate Non-Trading Segments U.S. GDP (2) Revenue Services Technology Services (IS, CS, MT) Consensus (3) Mid to High 2% -2.5% 4% - 5% Mid Single Digits Low Single Digits Mid-Single Digits Single Digits 1. Please refer to pages 26-27 for a reconciliation of organic revenue growth. GDP forecasts for 2017 and 2018 according to Consensus Economics Inc. 2. FactSet consensus est. 2016-2018 average annual revenue growth, as of 10/16/2017. 3. 4

INFORMATION SERVICES Information Services Performance Summary IS 3Q17 3Q17 3Q16 % ∆ Net Revenue Contribution Net Revenue $150M $137M 9% ● 6% increase in Data Products revenues: Primarily due to 25% growth in shared tape plan revenues as well as higher audit collections. Operating Income $111M $97M 14% ● 21% increase in Index Licensing & Services revenues: Primarily due to higher assets under management in exchange traded products linked to Nasdaq indexes. Operating Income 74% 71% Margin INFORMATION SERVICES NET REVENUES Operating Income Margin (1) 100% 160 $150 $144 $138 90% $137 $135 $134 $132 $133 140 $127 80% $34 $33 $28 $30 70% 120 $27 $30 $28 $29 $29 60% (US$ millions) Data Products 100 50% 40% 80 30% Index Licensing & 60 $116 $111 20% $109 $108 $107 $103 $105 $105 $98 Services 10% 40 0% 20 3Q16 4Q16 1Q17 2Q17 3Q17 0 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 1. Information Services’ margins reflect the allocation of certain costs that support the operation of various aspects of Nasdaq’s business, including Market Services, to units other than Information Services. 5

MARKET TECHNOLOGY Market Technology Performance Summary MT 3Q17 3Q17 3Q16 % ∆ Net Revenue Contribution • 5% growth in Market Technology revenues: The increase Net Revenue $77M $73M 5% primarily reflects higher change requests, organic revenue 13% growth in software as a service revenues, and a favorable impact due to changes in foreign exchange rates, partially offset by lower software, licensing and support revenues. • $66 million new order intake in 3Q17 and 9% y-o-y increase Operating Income $16M $19M (16)% in total order value to $805 million at 3Q17. • The operating income margin for Market Technology was 21%, down 5 percentage points, reflecting investments to Operating Income upgrade technology for the Nasdaq Financial Framework and 21% 26% Margin our surveillance offering. Operating Income Margin MARKET TECHNOLOGY NET REVENUES 100% $77 $77 90% 80 $73 $72 $71 80% $6 9 $6 7 70 70% $59 $57 60 60% (US$ millions) 50% 50 40% 40 30% 30 20% 10% 20 0% 10 3Q16 4Q16 1Q17 2Q17 3Q17 0 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 6

CORPORATE SERVICES Corporate Services Performance Summary CS 3Q17 Net Revenue 3Q17 3Q16 % ∆ Contribution ● Corporate Solutions revenues were unchanged. Net Revenue $161M $162M (1)% ● 1% decrease in Listing Services revenues: Primarily reflects 26 % a decrease in U.S. listings revenues due to the run-off of listing of additional shares fees, which is the result of the Operating Income $45M $42M 7% implementation of our all-inclusive annual fee, partially offset by an increase in European listing services revenues. ● 78 new U.S. listings including 34 IPOs in 3Q17, and a 77% Operating Income U.S. IPO win rate. 28% 26% Margin ● European new listings totaled 11 in 3Q17 . CORPORATE SERVICES NET REVENUES Operating Income Margin 100% 90% 200 80% $16 7 $16 4 $16 2 $16 2 $16 0 $16 1 70% $143 $143 150 $138 60% (US$ millions) 50% $98 Listings $97 $94 $94 $94 $95 40% $75 $77 $72 100 30% 20% Corporate Solutions 10% 50 0% $68 $68 $68 $69 $67 $67 $66 $66 $65 3Q16 4Q16 1Q17 2Q17 3Q17 0 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 7

MARKET SERVICES Market Services Performance Summary MS 3Q17 3Q17 3Q16 % ∆ Net Revenue ● 7% decrease in Equity Derivative Trading and Clearing revenues: Contribution Due primarily to lower net revenue capture, partially offset by higher U.S. Net Revenue $219M $213M 3% industry trading volumes and higher U.S. market share ● 5% increase in Cash Equity Trading revenues: Due to higher European 36 % revenues and a favorable impact from foreign exchange rates. ● 9% increase in Trade Management Services revenues: Due primarily Operating Income $118M $114M 4% to an increase in customer demand for third-party connectivity, co-location and test facilities as well as a favorable impact from foreign exchange rates. Operating Income ● 11% increase in Fixed Income and Commodities Trading and 54% 54% Margin Clearing revenues: Due to higher volumes and pricing changes at NFX and a favorable impact from changes in foreign exchange rates. Operating Income Margin MARKET SERVICES NET REVENUES 100% 90% 250 Trade Management $222 $220 $219 $218 80% $213 Services $200 $201 $19 $195 $194 $20 $19 $20 70% $18 200 $20 $23 $20 60% $21 $67 $62 $68 (US$ millions) $68 $67 Cash Equity Trading 50% $48 $51 $48 150 $46 40% 30% $62 $64 Equity Derivatives 100 $62 $61 $70 $59 $63 $66 $67 20% Trading & Clearing 10% 50 0% $75 $72 $69 $70 $70 $63 $64 $59 $61 3Q16 4Q16 1Q17 2Q17 3Q17 Fixed Income and 0 Commodities Trading 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 and Clearing 8

NON-GAAP OPERATING EXPENSES (1) (US$ millions) Total Non-GAAP operating 3Q17 EXPENSE CATEGORIES 3Q17 2Q17 3Q16 expenses Compensation and benefits 169 163 168 3%5% Professional and contract services 39 38 40 7% Computer operations and data 31 30 28 10% communications 53% Occupancy 23 23 23 12% General, admin. & other (2) 15 20 19 8 % 2% Marketing and advertising 7 8 8 Depreciation and amortization (2) 25 25 23 Compensation Marketing Depreciation Professional Services Regulatory (2) 8 8 8 Computer Ops Occupancy Total non-GAAP operating expenses 317 315 317 Regulatory G&A Please refer to the appendix for reconciliation of U.S. GAAP to non-GAAP measures. 1. Depreciation and amortization expense in all periods has been adjusted from GAAP expense. For 3Q17, regulatory expense is adjusted and for 2Q17, general, admin. & other expense 2. was also adjusted. Refer to slides 23 and 24 for the amounts and details of the adjustments for all periods presented. 9