Deutsche Boerse Ag · XETR:DB1

Deutsche Boerse — Deutsche Börse — Investor Day (June 2017)

39 slides from Deutsche Boerse's investor day presentation, Jun 14, 2017

  1. Slide 1: Investor day 2017: Geared towards growth

    Investor day 2017 “Geared towards growth” London, 14 June 2017

  2. Slide 2: Deutsche Börse’s equity story combines substantial growth opportunities with attractive shareholder returns

    Investor day 2017 14 June 2017 Deutsche Börse Group 1 Deutsche Börse’s equity story combines substantial growth opportunities with attractive shareholder returns  “Accelerate” programme has laid foundation for growth by making Deutsche Börse more agile, innovative and client- centric. Focus is now

  3. Slide 3: “Accelerate” – vision and growth strategy

    Investor day 2017 14 June 2017 Deutsche Börse Group 2 “Accelerate” – vision and growth strategy Strengthened corporate culture to become more agile, innovative and client-centric “Our vision is to turn Improved performance measurement and compensation alignment Deutsche Börse Group into the global m

  4. Slide 4: “Accelerate” programme has laid foundation for growth

    Investor day 2017 14 June 2017 Deutsche Börse Group 3 “Accelerate” programme has laid foundation for growth by making Deutsche Börse more agile, innovative and client-centric New Executive Board More client-centric global product responsibilities and divisional set-up development and sales functions

  5. Slide 5: Industry trends and Deutsche Börse’s strengths underpin growth potential

    Investor day 2017 14 June 2017 Deutsche Börse Group 4 Industry trends and Deutsche Börse’s strengths underpin growth potential Industry trends Deutsche Börse’s strengths + Several asset classes such as OTC IRS, FX and Multi-asset class trading, clearing and commodities show continuous and significan

  6. Slide 6: Uncertainty in Europe caused by political developments results in new client needs

    Investor day 2017 14 June 2017 Deutsche Börse Group 5 Uncertainty in Europe caused by political developments results in new client needs  Times of uncertainty in Europe and globally (populist movements, Euroscepticism, US politics) make political processes and actions less predictable.  The discon

  7. Slide 7: Key areas for growth across Deutsche Börse Group

    Investor day 2017 14 June 2017 Deutsche Börse Group 6 Key areas for growth across Deutsche Börse Group ▪ Leverage opportunities to further expand derivatives business Multi-asset (trading and clearing) and exploit additional revenue pools class trading A and clearing ▪ Broaden product range by expan

  8. Slide 8: Further build-out into a leading multi-asset class trading and clearing provider

    Investor day 2017 14 June 2017 Deutsche Börse Group 7 A Further build-out of Deutsche Börse Group into a leading multi-asset class trading and clearing provider Including 2000 Today 2020+ OTC markets and buy-side customers Global multi- asset class trading and clearing Cross-asset ▪ Consider partner

  9. Slide 9: TARGET2-Securities and new client needs create structural growth opportunities for Clearstream

    Investor day 2017 14 June 2017 Deutsche Börse Group 8 B TARGET2-Securities and new client needs result in significant structural growth opportunities for Clearstream Market imperatives Success factors Clearstream strategy 1. T2S and CSD-R are game-changing – A leading position in securities 1. Build

  10. Slide 10: Data business to become investment and trading intelligence hub

    Investor day 2017 14 June 2017 Deutsche Börse Group 9 C Deutsche Börse’s data business to become investment and trading intelligence hub From equity indices to investment product factory  Advanced thematic and smart- beta indices and benchmarks  Expanded multi-asset capabilities (e.g. LDI) Investm

  11. Slide 11: Digital transformation will be a catalyst for efficiencies and future growth

    Investor day 2017 14 June 2017 Deutsche Börse Group 10 D Digital transformation will be a catalyst for incremental efficiencies and future growth Description ▪ Drive datafication across Deutsche Börse Group, creating an environment for analytics and data science ▪ Execute data extraction and monetis

  12. Slide 12: Clear mid-term targets on growth, cost management and capital allocation

    Investor day 2017 14 June 2017 Deutsche Börse Group 11 Clear mid-term targets on growth, cost management and capital allocation have been set Growth: Cost management: ambitious targets scalability Net revenue: 5–10% CAGR Operating costs: 0–5% CAGR Net income: 10–15% CAGR Capital allocation: balanced

  13. Slide 13: Secular and cyclical growth expected to result in sustained growth

    Investor day 2017 14 June 2017 Deutsche Börse Group 12 Secular and cyclical growth as well as unique opportunity to expand leading position in Europe are expected to result in sustained growth Electronification / penetration Post-financial crisis Sustained growth  Electronification / remote access

  14. Slide 14: Diversified business model provides for double-digit secular and cyclical growth opportunities

    Investor day 2017 14 June 2017 Deutsche Börse Group 13 Diversified business model provides for broad range of double-digit secular and cyclical growth opportunities Net revenue split Secular growth Cyclical growth  1 Euro OTC clearing  10 Index derivatives €m 64 Financial 216 derivatives 2 Commodi

  15. Slide 15: Euro OTC clearing – service offering addresses client needs

    Investor day 2017 14 June 2017 Deutsche Börse Group 14 1 Euro OTC clearing – service offering addresses client needs in new political environment Volume development Secular growth drivers €bn; outstandings Eurex Clearing positioned very well to be successful in 1,354 OTC clearing: 945  Significant

  16. Slide 16: Commodities (EEX) – strong position in European energy markets

    Investor day 2017 14 June 2017 Deutsche Börse Group 15 2 Commodities (EEX) – strong position in European energy markets expected to result in attractive net revenue growth Net revenue development Secular growth drivers €m >10% CAGR  The commodities business of the Group has grown significantly in r

  17. Slide 17: FX (360T) – entry point into rapidly growing FX market

    Investor day 2017 14 June 2017 Deutsche Börse Group 16 3 FX (360T) – entry point into highly attractive and rapidly growing FX market with substantial revenue synergies Net revenue development Secular growth drivers €m >20% CAGR  360T is a leading global FX trading platform catering to a broad cust

  18. Slide 18: New Eurex products – increasing net revenue contribution

    Investor day 2017 14 June 2017 Deutsche Börse Group 17 4 New Eurex products – strongly increasing net revenue contribution from product innovation Net revenue development Secular growth drivers €m >15% CAGR  Eurex is frequently launching new products in order to address client needs or adapt to cha

  19. Slide 19: Support of growth financing – key pillar of the German capital market

    Investor day 2017 14 June 2017 Deutsche Börse Group 18 5 Support of growth financing – Deutsche Börse is a key pillar of the German capital market in terms of financing growth and innovation  Deutsche Börse defines the reputation, perception and credibility of the German capital market.  Positione

  20. Slide 20: Custody (ICSD/CSD) – T2S enables Clearstream to benefit from consolidation

    Investor day 2017 14 June 2017 Deutsche Börse Group 19 6 Custody (ICSD/CSD) – TARGET2-Securities enables Clearstream to benefit from a consolidation of custody volumes Net revenue development1) Secular and cyclical growth drivers 5–10% CAGR €m Secular drivers  T2S is game-changing: size and complex

  21. Slide 21: Investment fund services (IFS) – building upon a leading industry position

    Investor day 2017 14 June 2017 Deutsche Börse Group 20 7 Investment fund services (IFS) – building upon a globally leading industry position Net revenue development Secular growth drivers €m ~10% CAGR Market size and competition  €10tr2) market and growing with demand for pension and 124 124 increa

  22. Slide 22: Indices (STOXX) – innovative index offering for growth in assets under management

    Investor day 2017 14 June 2017 Deutsche Börse Group 21 8 Indices (STOXX) – unique and innovative index offering basis for sustainable growth in assets under management Net revenue development Secular growth drivers €m ~10% CAGR Market situation  Strong expected growth in passive assets (15% p.a. un

  23. Slide 23: Data & regulatory services – unique assets in market data

    Investor day 2017 14 June 2017 Deutsche Börse Group 22 9 Data & regulatory services – unique assets in market data and regulatory services space provide for growth opportunities Net revenue development Secular growth drivers €m ~10% CAGR Market situation  Information services in capital markets to

  24. Slide 24: Index derivatives – cyclical growth opportunity

    Investor day 2017 14 June 2017 Deutsche Börse Group 23 10 Index derivatives – Cyclical growth opportunity from improving European equity market environment and normalised volatility Volume development (traded contracts in m; ADV) Cyclical growth drivers 4.0 Cyclical upside ~€75m  In 2008 record ave

  25. Slide 25: Fixed-income derivatives – upside from interest rate cycle

    Investor day 2017 14 June 2017 Deutsche Börse Group 24 11 Fixed-income derivatives – significant upside from interest rate cycle Volume development (traded contracts in m; ADV) Cyclical growth drivers 3.1 Cyclical upside ~€150m  The fixed-income derivatives business saw sustained 2.6 growth in trad

  26. Slide 26: Net interest income – interest rate cycle opportunity at Clearstream

    Investor day 2017 14 June 2017 Deutsche Börse Group 25 12 Net interest income – interest rate cycle provides for significant opportunity to grow interest income at Clearstream Net interest income development Cyclical growth drivers €m Fed fund rate ECB deposit facility  Record high net interest inc

  27. Slide 27: Collateral management (GSF) – address key priorities of customers

    Investor day 2017 14 June 2017 Deutsche Börse Group 26 13 Collateral management (GSF) – address key priorities of customers via unique and innovative capabilities Net revenue development Cyclical and secular growth drivers €m >10% CAGR  Collateral management at Clearstream includes secured money ma

  28. Slide 28: Secular and cyclical opportunities result in 5–10% average annual revenue upside until 2019

    Investor day 2017 14 June 2017 Deutsche Börse Group 27 Secular and cyclical opportunities result in 5–10% average annual revenue upside until 2019 Mid-term net revenue opportunities €m Secular opportunities (~400–600) Cyclical opportunities +5–10% ~200–400 CAGR ~100 ~150 ~250 2,389 2016 Eurex Clears

  29. Slide 29: Efficient management of operating costs ensures scalability

    Investor day 2017 14 June 2017 Deutsche Börse Group 28 Efficient management of operating costs helps to ensure full scalability of business model Approach to cost management Mid-term guidance (2016–2019)  In order to achieve scalability of the business model, operating costs will be managed in the

  30. Slide 30: Balanced approach to capital allocation between growth and dividends

    Investor day 2017 14 June 2017 Deutsche Börse Group 29 Balanced approach to capital allocation between growth and dividend distribution Development of dividend and pay-out Capital management policy Pay-out ratio (%)1)  In general, Deutsche Börse Group aims to distribute 40 to 60% of the adjusted an

  31. Slide 31: Organic growth supplemented by targeted M&A activities

    Investor day 2017 14 June 2017 Deutsche Börse Group 30 Organic growth is supplemented by targeted M&A activities, if accretive and executable Guiding principles on M&A / management of shareholdings portfolio Acquisitions Disposals  The organic growth initiatives will be supplemented by targeted M&A

  32. Slide 32: Deutsche Börse’s equity story combines growth opportunities with shareholder distributions

    Investor day 2017 14 June 2017 Deutsche Börse Group 31 Deutsche Börse’s equity story combines substantial growth opportunities with attractive shareholder distributions  “Accelerate” ”programme has laid foundation for growth by making Deutsche Börse more agile, innovative and client-centric. Focus

  33. Slide 33: Appendix

    Investor day 2017 14 June 2017 Deutsche Börse Group 32 Appendix

  34. Slide 34: Commodities (EEX) – strong position in European energy markets

    Investor day 2017 14 June 2017 Deutsche Börse Group 33 2 Commodities (EEX) – strong position in European energy markets expected to result in attractive net revenue growth European power markets: Constant gains in market share from the OTC space since 2014 100% 80% 60% 40% 20% 29% 0% 13% 2014 2015 2

  35. Slide 35: New Eurex products – increasing net revenue contribution

    Investor day 2017 14 June 2017 Deutsche Börse Group 34 4 New Eurex products – strongly increasing net revenue contribution from product innovation Significant growth in new products constantly increased volume contribution as a % of Eurex Total traded contracts 0.5% 1.6% 3.8% 4.8% 6.8% 7.2% 7.9% 11.

  36. Slide 36: Custody (ICSD/CSD) – decline of international issuance activity

    Investor day 2017 14 June 2017 Deutsche Börse Group 35 6 Custody (ICSD/CSD) – TARGET2-Securities enables Clearstream to benefit from a consolidation of custody volumes Decline of international issuance activity provides for significant upside for custody US$bn 1,828 1,623 1,101 402 410 203 171 94 75

  37. Slide 37: Custody (ICSD/CSD) – reduced issuance by financial institutions

    Investor day 2017 14 June 2017 Deutsche Börse Group 36 6 Custody (ICSD/CSD) – TARGET2-Securities enables Clearstream to benefit from a consolidation of custody volumes Reduced issuance activity by financial institutions due to central bank liquidity supply €bn; gross issuance -67% Financial 905 804

  38. Slide 38: Fixed-income derivatives – stock of government debt in the Euro area

    Investor day 2017 14 June 2017 Deutsche Börse Group 37 11 Fixed-income derivatives – significant upside from interest rate cycle Stock of government debt in the Euro area has increased substantially €tr; outstanding amounts 7.0 7.1 6.8 6.5 6.1 6.3 5.7 5.2 +57% 4.5 4.7 2007 2008 2009 2010 2011 2012 2

  39. Slide 39: Disclaimer

    Investor day 2017 Disclaimer Cautionary note with regard to forward-looking statements: This document contains forward-looking statements and statements of future expectations that reflect management's current views and assumptions with respect to future events. Such statements are subject to known

Deutsche Börse — Investor Day (June 2017) on 6ix