Deutsche Boerse Ag · XETR:DB1
Deutsche Boerse — Deutsche Börse — Q3 2021 Earnings Presentation
23 slides from Deutsche Boerse's earnings presentation, Oct 20, 2021
Slide 1: Q3/2021 Financial results Analyst and Investor Conference Call
Q3/2021 Financial results Analyst and Investor Conference Call 20 October 2021
Slide 2: We achieved a very positive revenue performance in Q3 despite the lack of cyclical tailwinds
We achieved a very positive revenue performance in Q3 despite the lack of cyclical tailwinds Pre-trading Trading & clearing Post-trading Qontigo ISS Institutional Eurex EEX 360T Xetra Clearstream IFS Investment Index and analytics shareholder services Financial derivatives Commodities Foreign exchan
Slide 3: We continue to make good progress on our 10% growth targets
We continue to make good progress on our 10% growth targets Net revenue | €m EBITDA | €m Note +9% +9% 9M/2021 net revenue and EBITDA CAGR CAGR compared to 2019 (Compass 2023 (9M/21 vs. 9M/19) (9M/21 vs. 9M/19) base year) fully in-line with expected growth trajectory. Weaker cyclical net revenue
Slide 4: We will continue to pursue our successful M&A agenda
We will continue to pursue our successful M&A agenda M&A focus areas C u r r e n t d e ve l o p m e n t s Integration of ISS – Institutional Shareholder Services is well on track and initial guidance of P r e - t r a di ng >5% net revenue growth CAGR has proven to be on the conservative side; ambi
Slide 5: We further increased the funding for minority investments
We further increased the funding for minority investments Selected minority investments Minority investment portfolio includes a ~15% ~15% broad range of attractive businesses along AI-powered tech platform to analyse #1 one-stop-shop infrastructure the Deutsche Börse value chain. the societal imp
Slide 6: Group financials
Group financials Q3/2021 Net revenue | €m EBITDA | €m Cash EPS1 | € Note +18% +25% +36% +7% (organic) +17% (organic) +26% (organic) Net interest €33m income −17% €376m 838 Operating cost +17% +2% (organic) 708 Financial investments €37m 500 Depreciation2 €73m 400 1.74 Financial result €−
Slide 7: Group financials 9M/2021
Group financials 9M/2021 Net revenue | €m EBITDA | €m Cash EPS1 | € Note +7% +7% +12% +0% (organic) +4% (organic) +8% (organic) Net interest €100m income −38% €1,106m 2,575 Operating cost +13% 2,400 0% (organic) Financial investments €70m 1,539 1,433 Depreciation2 €206m 5.34 Financial re
Slide 8: Net revenue development
Net revenue development 9M/2021 | €m Consolidation Secular growth Cyclical growth Note +5% CAGR +6% CAGR −2% C A G R 9M/2021 net revenue growth rate compared to 2019 (Compass 2023 +9% base year) fully in-line with expected CAGR growth trajectory. -87 2,575 Consolidation effects vs. 9M/2019
Slide 9: Eurex (financial derivatives)
Eurex (financial derivatives) Q3/2021 Net revenue | €m EBITDA | €m Business activity +1% −1% −1% (organic) −1% (organic) Total 391m derivatives +6% 232 235 Index 186m derivatives −4% 28 34 Other1 15 141m 17 Eurex data Fixed income 22 16 Margin fees2 derivatives +14% 13 15 OTC clearing3 8 9 E
Slide 10: EEX (commodities)
EEX (commodities) Q3/2021 Net revenue | €m EBITDA | €m Business activity +17% +25% Power 150 TWh spot +3% 78 Power 1,584 TWh derivatives +20% 66 22 Other1 629 TWh Gas 18 +35% 12 Gas 9 35 28 Power derivatives 28 23 16 17 Power spot Q3/20 Q3/21 Q3/20 Q3/21 1) Including net revenue from connectivit
Slide 11: 360T (foreign exchange)
360T (foreign exchange) Q3/2021 Net revenue | €m EBITDA | €m Business activity +10% +2% Average daily €89bn volumes (ADV) +7% 27 24 6 Other1 5 11 12 21 Trading 19 Q3/20 Q3/21 Q3/20 Q3/21 1) Including net revenue from connectivity and member fees. Deutsche Börse Group │ 20 October 2021 10
Slide 12: Xetra (cash equities)
Xetra (cash equities) Q3/2021 Net revenue | €m EBITDA | €m Business activity −1% −10% Order book volume2 €376bn Equities +3% 86 85 Order book volume2 €61bn 11 ETF, ETC, ETN +26% 10 Other1 63 28 27 Xetra data 57 5 5 Listing 43 43 Trading & clearing Q3/20 Q3/21 Q3/20 Q3/21 1) Including net revenue
Slide 13: Clearstream (post-trading)
Clearstream (post-trading) Q3/2021 Net revenue | €m EBITDA | €m Business activity +5% +8% Assets under €13.2tr custody +9% 201 Settlement 17.1m 191 transactions (ICSD) +5% 23 Other1 22 Third party services 5 5 21 Collateral management Cash balances €13.4bn 18 11 Net interest income total volume
Slide 14: IFS (investment fund services)
IFS (investment fund services) Q3/2021 Net revenue | €m EBITDA | €m Business activity +55% +147% +28% (organic) +88% (organic) Assets under €3.3tr custody +22% 85 Settlement 10.4m transactions +14% 14 Other 19 Fund distribution1 55 55 15 22 Settlement 17 22 30 Custody 22 Q3/20 Q3/21 Q3/20 Q3
Slide 15: Qontigo (index and analytics business)
Qontigo (index and analytics business) Q3/2021 Net revenue | €m EBITDA | €m Business activity +10% +138% ETF assets under €116bn management +30% Exchange licences 172m 63 traded contracts −5% 60 54 16 Analytics 15 25 Other licences 24 27 8 Exchange licences 7 Gain of around €32 million from th
Slide 16: ISS (Institutional Shareholder Services)
ISS (Institutional Shareholder Services) Q3/2021 Net revenue | €m EBITDA | €m Note +16%1 +19%1 ESG net revenue contains Corporate Solutions, ESG Analytics and Governance Solutions 69 businesses. Non-ESG net revenue amongst others contains Market Intelligence, Media as well as FWW (fund data)
Slide 17: Outlook
Outlook FY/2021 Net revenue guidance | €m EBITDA guidance | €m Note +10% CAGR Compass 2023 mid-term plan targets 10% net revenue growth Compass 2023 target CAGR (5% secular + 5% M&A) and 10% EBITDA growth CAGR. ~4.3bn +10% CAGR For 2021 Deutsche Börse expects: 2021 target: Compass 2023 target −
Slide 18: Appendix
Appendix Deutsche Börse Group │ 20 October 2021 17
Slide 19: Income statement – group level
Income statement – group level (in €m) Q3/2021 Q3/2020 Sales revenue 1,039.0 773.5 Treasury result from banking business 32.5 39.2 Other operating income 6.3 0.9 Total revenue 1,077.8 813.6 Volume-related costs –239.9 –106.1 Net revenue 837.9 707.5 Staff costs –249.3 –194.8 Other operating expenses
Slide 20: Income statement – segmental level I/II
Income statement – segmental level I/II Eurex EEX 360T Xetra (financial derivatives) (commodities) (foreign exchange) (cash equities) (in €m) Q3/21 Q3/20 Q3/21 Q3/20 Q3/21 Q3/20 Q3/21 Q3/20 Net revenue 234.7 231.8 77.7 66.2 26.5 24.2 84.8 85.5 Staff costs –53.6 –48.3 –27.9 –21.3 –9.4 –8.9 –22.1 –22.
Slide 21: Income statement – segmental level II/II
Income statement – segmental level II/II Clearstream IFS Qontigo ISS (post-trading) (investment fund services) (index and analytics business) (Institutional Shareholder Services) (in €m) Q3/21 Q3/20 Q3/21 Q3/20 Q3/21 Q3/20 Q3/21 Q3/20 Net revenue 201.3 191.2 84.7 54.5 59.5 54.1 68.7 Staff costs –57.
Slide 22: Financial calendar and contact details
Financial calendar and contact details Financial calendar 03 Nov. 2021 Virtual Group Meeting for US investors organised by Jefferies 08-10 Nov. 2021 UBS European Virtual Conference 2021 (virtual/ London) Deutsche Börse AG 10 Nov. 2021 ISS Business Deep Dive (virtual) Investor Relations 17 Nov. 2021
Slide 23: Disclaimer
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 and unknown risks