Intercontinental Exchange (NYSE: ICE) Sandler O’Neill Global Exchange & Brokerage Conference June 2016
FORWARD-LOOKING STATEMENT 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 are not historical facts are forward-looking statements that involve risks, uncertainties and assumptions that are difficult to predict. Although we believe the expectations reflected in these forward-looking statements are reasonable, these statements are not guarantees of future results, performance, levels of activity or achievements, and actual results may differ materially from what is expressed or implied in any forward-looking statement. The factors that might affect our performance include, but are not limited to: general economic conditions and conditions in global financial markets; volatility in commodity prices, equity prices, and price volatility of financial benchmarks and instruments such as interest rates, credit spreads, equity indexes and foreign exchange rates; our business environment and industry trends; continued high renewal rates of subscription-based data revenues; changes in domestic and foreign laws, regulations, rules or government policy with respect to financial markets, or our businesses generally, including increased regulatory scrutiny or enforcement actions and our ability to comply with these requirements; our ability to identify and effectively pursue acquisitions and strategic alliances and successfully integrate the companies we have acquired or acquire in the future; the success of our clearing houses and our ability to minimize the risks associated with operating multiple clearing houses in multiple jurisdictions; the resilience of our electronic platforms and soundness of our business continuity and disaster recovery plans; performance and reliability of our technology and the technology of our third party service providers; increasing competition and consolidation in our industry; our ability to keep pace with rapid technological developments and to ensure that the technology we utilize is not vulnerable to security risks, hacking and cyber-attacks; the accuracy of our cost estimates and expectations; our belief that cash flows from operations will be sufficient to service our current levels of debt and fund our working capital needs and capital expenditures for the foreseeable future; our ability, on a timely and cost-effective basis, to offer additional products and services, leverage our risk management capabilities and enhance our technology; our ability to maintain existing market participants and attract new ones; our ability to attract and retain our key talent; our ability to protect our intellectual property rights, including the costs associated with such protection, and our ability to operate our business without violating the intellectual property rights of others; our ability to identify trends and adjust our business to respond to such trends; and potential adverse results of litigation and regulatory actions and proceedings. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward- looking statements, see ICE’s Securities and Exchange Commission (SEC) filings, including, but not limited to ICE’s most recent Annual Report on Form 10-K for the year ended December 31, 2015, as filed with the SEC on February 4, 2016. These filings are available in the Investors & Media section of our website. We caution you not to place undue reliance on these forward-looking statements. Any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking statement or statements to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of an unanticipated event. New factors emerge from time to time, and it is not possible for management to predict all factors that may affect our business and prospects. Further, management cannot assess the impact of each factor on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. GAAP AND NON-GAAP RESULTS This presentation includes non-GAAP measures that exclude certain items we do not consider reflective of our cash operations and core business performance. We believe that the presentation of these non-GAAP measures provides investors with greater transparency and supplemental data relating to our financial condition and results of operations. These adjusted non-GAAP measures should be considered in context with our GAAP results. A reconciliation of Adjusted Net Income from Continuing Operations, Adjusted Earnings Per Share from Continuing Operations, Adjusted Operating Income, Adjusted Operating Margin and Adjusted Operating Expenses to the equivalent GAAP measure and an explanation of why we deem these non-GAAP measures meaningful appears in our Form 10-Q filed with the SEC on May 4, 2016 and in the appendix to this presentation. The reconciliation of Adjusted Tax Rate and Adjusted Debt-to-EBITDA to the equivalent GAAP results appear in the appendix to this presentation. Our Form 10-Q, earnings press release for the first quarter of 2016 and this presentation are available in the Investors and Media section of our website at www.theice.com. EXPLANATORY NOTES All net revenue figures represent revenues less transaction based expenses for periods shown. All earnings per share figures represent diluted weighted average share count on continuing earnings. 2
ICE PERFORMANCE OVERVIEW
ICE: BEST IN CLASS GROWTH & RETURNS 50% recurring revenue, highly transparent financial model Strong growth in operating cash flow and capital return Double-digit earnings growth target Disciplined investment, best in class ROIC 1Q16 1Q16 REVENUES REVENUES OF OF $1.2B $1.2B 41% Data Services 41% Data Servic es 9% Listings 9% Listin gs (1) 41% Global Deriva 41% Global Derivatives tives (1) 5% Cash Equit 5% Cash Equities es (2) (2) (2) 4% Other 4% Other (1) Net of transaction based expenses (2) These represent non-GAAP measures. Adjusted EPS refers to adjusted earnings per share from continuing operations. Please refer to Slide 27 for reconciliation to the equivalent GAAP measures. INTERCONTINENTAL EXCHANGE 4
GLOBAL MARKETS, CLEARING & DATA LEADER 11 GLOBAL EXCHANGES 6 CENTRAL CLEARING HOUSES GLOBAL DATA SERVICES Growth oriented products across Innovative clearing leader across Strong recurring revenue streams energy, agricultural and financial global commodity and financial based on mission-critical data instruments futures and swaps markets Combination of proprietary data, Volume growth leader in global Clearing houses in the US, Europe, processes, indices, benchmarks futures markets with 19% 9-yr UK, Singapore and Canada driving 6-7% rev. growth in 2016 on a pro forma basis CAGR Introduced >500 new cleared ICE Futures exchanges in the US, Data covers virtually all asset products across asset classes Europe, UK, Singapore and over 7 years to help customers classes from fixed income and Canada; NYSE Group includes US trade and manage risk and equities to commodities and cash equity and options regulatory compliance globally options exchanges Connectivity solutions serving demand for security, capacity INTERCONTINENTAL EXCHANGE 5
QUANTIFIABLE GROWTH DRIVERS, SECULAR TRENDS Proven integrator & organic 24% Rev (2) , 18% Adj EPS growth ~$700MM synergies growth driver with expense 5-year CAGR Delivered by 2019 discipline Recurring Revenue Rising demand for market data (1) (1) +9% y/y +6% y/y and related analytics and 1Q16 exchange data revenue 1Q16 total data revenue connectivity services Lead in US cash equities, NYSE ADV +21% Listings Rev +10% y/y ETFs & listings in terms of vs. May YTD 2015; In FY2015; Growth in share continues Leader in global proceeds growth and profitability Transaction Revenue MSCI ADV Growth Rates open interest Build on EU rates and +62% YOY global equity index +25% YOY complexes + CDS clearing Up 5-fold in 3 years Highest OI since 2010 Volatility and demand for 11 exchanges Commodities ADV commodities trading, clearing 9 asset classes +15% y/y YTD and risk management diversified across growth markets vs. May YTD 2015 (1) 1Q15 figures reflect pro forma results which include Interactive Data Corporation and Trayport as if we had owned them during the period. 2015 pro forma results are available on ICE”s Investor Relations section of our website. (2) Net of transaction based expenses. 6
EXCHANGE & CLEARING SEGMENT
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