Deutsche Boerse Ag · XETR:DB1

Deutsche Boerse — Deutsche Börse — FY2023 Earnings Presentation

19 slides from Deutsche Boerse's earnings presentation, Feb 8, 2024

  1. Slide 1: Q4 and FY/2023 preliminary financial results

    Q4 and FY/2023 preliminary financial results Analyst and Investor Conference Call 8 February 2024

  2. Slide 2: Development in 2023 significantly exceeded original expectations, leading to another record year

    Development in 2023 significantly exceeded original expectations, leading to another record year Net revenue | €bn EBITDA | €bn Cash EPS | € ▪ Organic net revenue growth of 12% in 2023 17% 17% 16% significantly exceeded original expectations ▪ Key driver was the extraordinary net interest 5.1 income

  3. Slide 3: Outlook for 2024 is in-line with the Horizon 2026 growth trajectory

    Outlook for 2024 is in-line with the Horizon 2026 growth trajectory Net revenue | €bn Strategic priorities in 2024 ~6.4 >5.6 Support further secular growth 5.1 ▪ Leverage momentum in fixed income: expansion of repo offering, increase of 4.3 market share in OTC clearing and move into short term inter

  4. Slide 4: Group financials FY/2023

    Group financials FY/2023 Net revenue | €m EBITDA | €m Cash EPS1 | € Note  +17%  +17%  +16% €961m  +12% (organic)  +17% (organic)  +19% (organic) Treasury result +81% €2,118m 5,077 Operating cost +16% 4,338 9.98 Financial investments €−14m 8.61 Depreciation2 €419m 2,944 2,526 Financial result €

  5. Slide 5: Operating costs

    Operating costs FY/2023 Operating cost bridge | €m Note ▪ Organic operating cost growth in 16% 2023 in-line with original expectation, despite higher variable compen- Organic sation, share-based payments and  +5% inflation bonus in Q4/23 2,118 2,012 106 ▪ Creation of Investment Management Solutions

  6. Slide 6: Group financials Q4/2023

    Detailed income statement Group financials Q4/2023 Net revenue | €m EBITDA | €m Cash EPS1 | € Note  +23%  +23%  +15% ▪ Continued secular net revenue  +5% (organic)  +13% (organic)  +13% (organic) growth complemented by cyclical tailwinds from increased interest 1,437 rates, which offset lower

  7. Slide 7: Investment Management Solutions

    Detailed income statement Investment Management Solutions Q4/2023 Net revenue | €m EBITDA | €m Business development  +98%  +75% ▪ SimCorp’s net revenue of €198 million was above expectations; software solutions overall benefited from new 367 clients and renewals, with especially good momentum in a

  8. Slide 8: Trading & Clearing

    Detailed income statement Trading & Clearing Q4/2023 Net revenue | €m EBITDA | €m Business development  +8%  +21% ▪ Financial derivatives benefitted mainly from higher fixed income activity (futures and repo), while lower equity 582 volatility resulted in a decline of 540 35 Foreign exchange │ +4%

  9. Slide 9: Fund Services

    Detailed income statement Fund Services Q4/2023 Net revenue | €m EBITDA | €m Business development  +21%  +40% ▪ In fund distribution and processing, outflows from active equity funds to passive and fixed income were 116 compensated by new clients ▪ In Q4/22, distribution included 96 38 Other1 │ +9

  10. Slide 10: Securities Services

    Detailed income statement Securities Services Q4/2023 Net revenue | €m EBITDA | €m Business development  +7%  +7% ▪ Custody and settlement positively affected by ongoing high level of fixed income issuance activity and higher 372 index levels 347 33 Other1 │ –4% 35 ▪ Net interest income: much high

  11. Slide 11: Dividend proposal

    Dividend proposal FY/2023 Dividend per share and pay-out Capital management Payout ratio (%) ▪ To reflect increased earnings and the Dividend per share (€) 6% strong growth outlook, we adjusted our dividend payout ratio target to 30-40% of the annual net profit ▪ Within this range, we manage the 3.8

  12. Slide 12: Appendix

    Appendix Deutsche Börse Group │ 8 February 2024 11

  13. Slide 13: Outlook FY/2024

    Outlook FY/2024 Net revenue | €bn EBITDA | €bn 2024 target ▪ In addition to organic growth based on secular growth >5.6 opportunities, the consolidation of SimCorp will make a 5.1 significant contribution (net revenue of ~€600 million and EBITDA pre synergies of ~€200 million in 2024) 2024 ▪ We curr

  14. Slide 14: Income statement – group level

    Back to group overview Income statement – group level Q4/23 Q4/22 Change Income statement | €m Q4/23 Q4/22 Change % €m €m % Sales revenue 1,491.4 1,186.3 26 Treasury result from banking business 228.7 233.8 –2 Other operating income 13.0 20.1 –35 Total revenue 1,733.1 1,440.2 20 Volume-related costs

  15. Slide 15: Detailed income statement – Investment Management Solutions

    Back to segmental overview Detailed income statement – Investment Management Solutions Income Income statement ‒ Investment Management Solutions statement Volume Volumes Revenue Revenue per volume per volume Q4/23 Q4/22 Change Unit Volume Change Unit RPV Change €m €m % % % Net revenue 366.7 185.1 98

  16. Slide 16: Detailed income statement – Trading & Clearing

    Back to segmental overview Detailed income statement – Trading & Clearing Income statement ‒ Trading & Clearing Income statement Volume Volumes Revenue Revenue per volume per volume Q4/23 Q4/22 Change Unit Volume Change Unit RPV Change €m €m % % % Net revenue 582.4 540.2 8 Financial derivatives 312.

  17. Slide 17: Detailed income statement – Fund Services

    Back to segmental overview Detailed income statement – Fund Services Income statement ‒ Fund Services Income statement Volume Volumes Revenue Revenue per volume per volume Q4/23 Q4/22 Change Unit Volume Change Unit RPV Change €m €m % % % Net revenue 115.9 95.9 21 1 Fund processing 56.1 51.8 8 AuC (€

  18. Slide 18: Detailed income statement – Securities Services

    Back to segmental overview Detailed income statement – Securities Services Income statement ‒ Securities Services Income statement Volume Volumes Revenue Revenue per volume per volume Q4/23 Q4/22 Change Unit Volume Change Unit RPV Change €m €m % % % Net revenue 371.5 346.8 7 1 Custody 152.6 147.6 3

  19. Slide 19: Financial calendar and contact details

    Financial calendar and contact details Financial calendar Deutsche Börse AG 21 February 2024 BofA US Financials Conference (Miami) Investor Relations 5 March 2024 RBC Global Financials Conference (New York) Mergenthalerallee 61 14 March 2024 Morgan Stanley European Financials Conference (London) 657

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