FOR PROFESSIONAL RESEARCH WRITER ONLY

160 120 100 80 60 50 40 30

20 15

5-for-1

Percent shares traded

60 40 20

E

Target Price Range 2023 2024 2025

INTERCONTNL. EXCH. NYSE-ICE 101.23 22.6 23.220.0 1.08 1.2% TIMELINESS 1 Raised 6/19/20 SAFETY 2 Raised 7/17/15 TECHNICAL 3 Lowered 10/9/20 BETA .90 (1.00 = Market)

18-Month Target Price Range Low-High Midpoint (% to Mid)

$79-$162 $121 (20%)

2023-25 PROJECTIONS Ann’l Total

Price Gain Return High 140 (+40%) 10% Low 100 (Nil) 1% Institutional Decisions

4Q2019 1Q2020 2Q2020 to Buy 519 506 536 to Sell 374 465 428 Hld’s(000) 505244 482374 476284

High: 24.4 25.9 27.1 28.5 45.4 45.9 53.3 59.9 73.0 82.6 95.6 107.0 Low: 10.0 18.4 20.5 22.1 24.8 36.5 40.4 45.4 55.8 66.9 71.2 63.5

% TOT. RETURN 8/20 THIS VL ARITH.*

STOCK INDEX 1 yr. 15.2 8.7 3 yr. 70.7 17.6 5 yr. 147.9 45.6

CAPITAL STRUCTURE as of 6/30/20 Total Debt $8408.0 mill. Due 5 Yrs $3500.0 mill. LT Debt $7703.0 mill. LT Interest $260.0 mill. (LT int. earned: 14.7x)

(31% of Cap’l)

Leases, Uncapitalized Annual rentals $62.0 mill. No Defined Benefit Pension Plan

Pfd Stock None Common Stock 543,276,671 shs. as of 7/27/20

MARKET CAP: $55.0 billion (Large Cap) CURRENT POSITION 2018 2019 6/30/20

($MILL.) Cash Assets 724 841 880 Receivables 953 988 993 Other 65015 66150 95562 Current Assets 66692 67979 97435 Accts Payable 521 505 520 Debt Due 951 2569 705 Other 64636 65742 94968 Current Liab. 66108 68816 96193

ANNUAL RATES Past Past Est’d ’17-’19 of change (per sh) 10 Yrs. 5 Yrs. to ’23-’25 Revenues 14.5% 15.5% 7.5% ‘‘Cash Flow’’ 16.0% 19.0% 8.5% Earnings 16.0% 15.5% 9.5% Dividends - - 34.5% 6.5% Book Value 18.0% 10.0% 8.0%

Cal- Full endar Year

QUARTERLY REVENUES ($ mill.) F Mar.31 Jun. 30 Sep. 30 Dec. 31

2017 1164 1178 1143 1144 4629 2018 1225 1246 1200 1308 4979 2019 1270 1298 1336 1298 5202 2020 1559 1395 1460 1431 5845 2021 1575 1525 1520 1520 6140 Cal- Full

endar Year EARNINGS PER SHARE A

Mar.31 Jun.30 Sep.30 Dec.31 2017 .74 .75 .73 .73 2.95 2018 .90 .90 .85 .94 3.59 2019 .92 .94 1.06 .95 3.88 2020 1.28 1.07 1.10 1.00 4.45 2021 1.30 1.10 1.15 1.05 4.60 Cal- Full

endar Year QUARTERLY DIVIDENDS PAID G

Mar.31 Jun.30 Sep.30 Dec.31 2016 .17 .17 .17 .17 .68 2017 .20 .20 .20 .20 .80 2018 .24 .24 .24 .24 .96 2019 .275 .275 .275 .275 1.10 2020 .30 .30 .30

2004D 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 .41 .56 1.08 1.65 2.25 2.71 3.14 3.67 3.76 2.91 5.47 5.61 7.56 7.77 .15 .24 .54 .78 1.00 1.16 1.42 1.77 1.88 1.40 2.31 2.68 3.82 3.84 .08 d.04 .48 .68 .83 .85 1.07 1.38 1.50 1.63 1.93 2.43 2.78 2.95 - - - - - - - - - - - - - - - - - - .13 .52 .58 .68 .80

.01 .03 .04 .09 .08 .07 .06 .16 .09 .24 .30 .32 .42 .37

.57 .84 1.56 4.24 5.54 6.53 7.58 8.62 10.05 21.88 21.88 24.89 26.42 28.40 264.33 277.56 290.63 348.56 361.82 367.45 366.52 362.13 362.37 575.00 565.00 595.00 595.00 596.00

- - - - 28.8 43.9 26.6 21.1 20.5 17.5 17.3 21.6 21.1 19.3 18.8 21.5 - - - - 1.55 2.33 1.60 1.41 1.30 1.10 1.10 1.21 1.11 .97 .99 1.08 - - - - - - - - - - - - - - - - - - .4% 1.3% 1.2% 1.3% 1.3%

1149.9 1327.5 1363.0 1674.0 3092.0 3338.0 4499.0 4629.0 67.3% 69.7% 70.3% 66.9% 61.8% 66.1% 70.3% 69.7% 121.2 132.3 130.5 161.0 202.0 234.0 610.0 535.0 398.3 509.7 551.6 646.0 1104.0 1359.0 1665.0 1752.0

33.2% 31.3% 28.9% 27.3% 30.2% 27.2% 29.9% 30.3% 34.6% 38.4% 40.5% 38.6% 35.7% 40.7% 37.0% 37.8% 448.4 805.1 1504.4 d83.0 d294.0 d1430 d1484 d609.0 325.8 837.5 969.5 3923.0 2247.0 4717.0 3871.0 4267.0

2777.6 3121.5 3643.4 12583 12360 14808 15717 16924 13.3% 13.3% 12.4% 4.1% 7.9% 7.2% 9.0% 8.7% 14.3% 16.3% 15.1% 5.1% 8.9% 9.2% 10.6% 10.4% 14.3% 16.3% 15.1% 4.5% 6.5% 6.9% 8.0% 7.5%

- - - - - - 12% 27% 24% 25% 27%

2018 2019 2020 2021 © VALUE LINE PUB. LLC 23-25 8.75 8.61 10.80 11.35 Revenues per sh F 12.95 4.68 4.73 5.75 5.95 ‘‘Cash Flow’’ per sh 7.30 3.59 3.88 4.45 4.60 Earnings per sh A 6.00 .96 1.10 1.20 1.24 Div’ds Decl’d per sh G 1.40 .24 .25 .25 .25 Cap’l Spending per sh .40

30.23 28.57 33.05 34.95 Book Value per sh B 46.30 569.00 604.00 540.00 540.00 Common Shs Outst’g C 540.00

20.7 22.0 Bold figures are Value Line estimates

Avg Ann’l P/E Ratio 20.0 1.12 1.19 Relative P/E Ratio 1.10

1.3% 1.3% Avg Ann’l Div’d Yield 1.2%

4979.0 5202.0 5845 6140 Revenues ($mill) F 7000 70.2% 71.0% 71.0% 72.0% Operating Margin 72.5% 586.0 662.0 675 685 Depreciation ($mill) 700

2077.0 2194.0 2425 2500 Net Profit ($mill) 3240 22.9% 21.7% 22.5% 22.5% Income Tax Rate 24.0% 41.7% 42.2% 41.5% 40.7% Net Profit Margin 50.8% 584.0 d837.0 120 360 Working Cap’l ($mill) 225

6490.0 5250.0 13250 13000 Long-Term Debt ($mill) 10000 17201 17255 17850 18875 Shr. Equity ($mill) 25000 9.3% 10.4% 8.0% 8.0% Return on Total Cap’l 9.5%

12.1% 12.7% 13.5% 13.0% Return on Shr. Equity 13.0% 8.8% 9.1% 10.0% 9.5% Retained to Com Eq 10.0% 27% 28% 27% 27% All Div’ds to Net Prof 23%

Company’s Financial Strength A Stock’s Price Stability 95 Price Growth Persistence 90 Earnings Predictability 100

(A) Based on diluted shares. Excl. discontinued operations: ’05, ($0.18). Earnings may not sum due to changes in share count or rounding. Next earnings report due early November.

(B) Incl. intangibles. In ’19: $23.6 bill.; $39.07/share. (C) In millions, adj. for split. (D) 2004 data is pro forma. (E) Acq. NYSE Euronext 11/13/13.

(F) Rev. are net of transaction-based ex- penses. (G) Initiated quarterly dividend 12/12/13. Divd’s historically paid late Mar., Jun., Sept., and Dec.

BUSINESS: Intercontinental Exchange, Inc. (ICE) owns and opera- tes the leading global, electronic marketplace for trading both fu- tures and over-the-counter (OTC) energy contracts and the leading soft commodity exchange. Owns ICE Data, ICE Markets, ICE Fu- tures, and IntercontinentalExchange Technologies. Also offers risk management and trading support services, incl. cleared OTC con-

tracts, ETC confirmations, and energy market data. Acq. NYBOT 1/07 and NYSE Euronext, 11/13. Has 5,989 employees. Off./dir. own 1.5% of stock; Vanguard, 7.8%; BlackRock, 7.1%; T. Rowe Price, 5.1% (3/20 proxy). Inc.: DE. Pres.: Benjamin R. Jackson. Chair/CEO: Jeffrey C. Sprecher. Addr.: 5660 New Northside Drive, Atlanta, GA 30328. Tel.: 770-857-4700. Internet: www.theice.com.

Intercontinental Exchange put in a strong performance for the second quarter. Despite a difficult operating backdrop, due to coronavirus and economic headwinds, earnings per share advanced 14%, on a 7% revenue gain during the June period. The exchange operator should put in a solid showing in 2020. Ongoing ex- pense controls, and other business invest- ments, including recent acquisitions, ought to bolster its near-term prospects. The top and bottom lines will probably climb 10%- 15% and 15%, respectively, this year. Next year, we expect revenues and earnings will increase at a low single-digit clip. The Ellie Mae acquisition ought to contribute nicely to results in the back half of the year. In September, In- tercontinental purchased Ellie Mae from private equity company Thoma Bravo for roughly $11 billion. The addition of the cloud-based platform provider for the mortgage finance industry helps ICE wid- en its footprint into a new market category. We envision the company will also integrate the technologies into its other platforms.

And other strategic business improve- ments should set the stage for the long haul. The company has been focus- ing on technological investments and prod- uct innovation. It has launched several new products and services, and will proba- bly work to better cater to its customers’ needs, as they adapt to the market envi- ronment. The company has been raising debt to fund recent initiatives. In August, it issued $6.5 billion in senior notes. It used the majority of the proceeds to finance the Ellie Mae acquisition. And it may use cash on hand to fund other business initiatives, as well as returning cash to shareholders through dividends and share buybacks (it repurchased $1.1 billion in common stock through the end of the June quarter). These shares are ranked to out- perform the broader market averages in the year ahead. However, thanks to the stock’s recent momentum, it is now trading near the low end of our 2023-2025 Target Price Range, thereby limiting much of its capital appreciation potential over the long haul. Orly Seidman October 9, 2020

LEGENDS 18.0 x ″Cash Flow″ p sh

. . . . Relative Price Strength 5-for-1 split 11/16 Options: Yes Shaded area indicates recession

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