Deutsche Boerse Ag · XETR:DB1
Deutsche Boerse — ISS Stoxx — Investor Presentation (March 2025)
29 slides from Deutsche Boerse's investor presentation, March 2025
Slide 1: Powering the investment process through unique data and insights
Powering the investment process through unique data and insights March 2025
Slide 2: Our Mission
Our Mission Providing proprietarily-sourced, customized and derived data, analytics, and models to assist clients in making and executing informed investment decisions 2
Slide 3: What Makes ISS STOXX Unique
What Makes ISS STOXX Unique Addressing rising complexity which drives structural growth in investor requirements and demands Complexity Data & Analytics Providing unique data & analytics to global investment community Global brand recognition with scale and Customized solutions combining leading mar
Slide 4: ISS STOXX at a Glance
ISS STOXX at a Glance Global Trusted Independent presence with 3,800+ employees in 20 partner with 40 years of strong track high standards of integrity and countries combining global reach with record independence of research local expertise Critical Quality Customized highly relevant data and resea
Slide 5: Strategic Journey to Create One-Stop-Shop for Comprehensive Investment Solutions
Strategic Journey to Create One-Stop-Shop for Comprehensive Investment Solutions Governance & Proxy Founded with a focus on proxy DAX is launched and STOXX European Advisory advisory and governance solutions is founded Sell-side Leadership Providing companies with the Market leader within structured
Slide 6: Equity Story Pillars
Equity Story Pillars 1 Powering the Investment Process by Offering an Indispensable Value Accretive Product Suite Globally 2 Large and Growing Total Addressable Market with Favourable Underlying Trends 3 Highly Attractive and Diversified Client Portfolio Focusing on the Buyside with White Space for
Slide 7: We Support Clients Across the Investment Process…
1 We Support Clients Across the Investment Process… 29% Stewardship Solutions 38% Index Leading provider of solutions that help clients fulfil their stewardship and fiduciary #2 provider of European equity benchmarks and custom indices(3) responsibilities, including corporate governance & responsibl
Slide 8: …Adding Significant Value to Our Clients
1 …Adding Significant Value to Our Clients Integrated in Critical Client Workflows Informing Critical Risk Managing Market Infrastructure to Decisions Mitigation Exposure Implement Decisions Stewardship Providing actionable voting Solutions Helping form views on key governance Raising red flags to a
Slide 9: Global Reach with Deep Local Expertise and Understanding of Regional Markets
Global Reach with Deep Local Expertise and Understanding of 1 Regional Markets EMEA 118 46% Markets covered ~800 2024 Revenue Employees(1) 20 Countries of presence 3,800+ America APAC Employees(1) 49% 5% ~820 ~2,220 2024 Revenue Employees(1) 2024 Revenue Employees(1) 56% Workforce located in Local O
Slide 10: We Serve a Large and Growing Market…
2 We Serve a Large and Growing Market… Substantial Market Opportunity and Growth Runway… …Across All Segments of our Business CAGR 12% 7% 5% 4% 2024–2029 €25.3Bn €10.9Bn 10.8 TAM 2029 EMEA subscription fee TAM of €1.0Bn - 8% growing at 9%(1) €5.9Bn TAM CAGR €6.1Bn €17.0Bn 2024-2029 €5.7Bn €4.6Bn Cur
Slide 11: …Supported by Favourable Underlying Trends
2 …Supported by Favourable Underlying Trends Key Trends ISS STOXX Positioning Structural shift to Higher Growth in Total Net Assets in Passive funds vs. Active Long-term secular tailwind for our index 1 passive investing investment funds over the last 15 years business Significant rise in Increase
Slide 12: Unique Breadth and Depth Relative to Competitors
2 Unique Breadth and Depth Relative to Competitors Market Position Competitive Landscape Stewardship Solutions: Glass Lewis A Global market leader(1) Governance Egan-Jones Ethos Stewardship Solutions: MSCI Sustainanalytics(6) Top 3 global provider(2) Sustainability Bloomberg #2 European equity index
Slide 13: Highly Attractive and Diversified Client Portfolio Focused on Attractive Buyside Segment Growth…
Highly Attractive and Diversified Client Portfolio Focused on 3 Attractive Buyside Segment Growth… Run Rate Split by Client Type Scale Loyal Hedge Funds Corporates 76% Penetration in S&P 500 3% 11% Other(2) 5k+ 90% Companies(1) Clients Retention Rate(3) 28% €609MM Run Rate Diversified Longevity 4% A
Slide 14: …With Substantial White Space to Grow Wallet Share of Existing Clients
…With Substantial White Space to Grow Wallet Share of Existing 3 Clients Through Cross- and Up-sell Opportunities 17% Wallet Share White Space by Segment White Space by Customer Type €3.5Bn Asset Index €1.2Bn €1.3Bn Managers Other(1) €0.6Bn €2.9Bn Market €0.8Bn Intelligence Corporates €0.4Bn €638MM
Slide 15: Proprietary, High-Quality Datasets with Differentiated Customization Capabilities
Proprietary, High-Quality Datasets with Differentiated 4 Customization Capabilities • Vast amount of data with global coverage • ~8MM daily index data points managed Data Sourcing • Comprehensive, relevant and accurate • 99.5% data accuracy and Curation • Longevity and reusability • ~40 years longev
Slide 16: AI to Further Drive Growth and Efficiency Over Time
4 AI to Further Drive Growth and Efficiency Over Time Clear Opportunities to Drive Growth with AI… …Complementing Our Competitive Moats • Improving efficiency by using deep learning to Researcher analyze research articles Data collection effectiveness that has been acquired by ISS STOXX over the yea
Slide 17: Predictable Subscription-Based Revenue Model…
5 Predictable Subscription-Based Revenue Model… Through the Cycle Growth Run Rate as KPI Total Income incl. M&A(1) 20-24A FX Adj. CAGR (in €MM) Asset & Transaction Based Fees 13% 638 11 451 o/w 93% Run Rate 24A 2 Recurring Revenue €609MM 628 449 Subscription Fees 2020 2024 87% Revenue Other Operatin
Slide 18: …With Attractive Business Mix and Growth Potential…
5 …With Attractive Business Mix and Growth Potential… €609MM Run Rate 24A +4.9% 22-24A FX Adj. CAGR Stewardship Solutions Run Rate Index Run Rate Market Intelligence Run Rate Corporate Solutions Run Rate €MM €MM €MM €MM 232 203 174 75 108 103 151 5 71 100 3 85 169 157 148 131 2022 2024 2022 2024 202
Slide 19: …And High Operating Leverage and Strong Free Cash Flow Generation
…And High Operating Leverage and Strong Free Cash Flow 5 Generation Adjusted EBITDA(1) Adjusted Free Cash Flow €MM €MM Adj. EBITDA Adj. FCF 46% 43% 44% 82% 76% 91% Margin Conversion 277 283 262 258 228 200 2022 2023 2024 2022 2023 2024 • 2023 margin impacted by ISS & STOXX integration and higher • L
Slide 20: Compelling Building Blocks of Sustainable Future Growth
5 Compelling Building Blocks of Sustainable Future Growth Execute on M&A Geographic AI / Technology strategy expansion to further drive Increase particularly in operational penetration and Corporate efficiency wallet share with Solutions and existing client base Strategic actions Sustainability Real
Slide 21: Realizing Full Potential of ISS STOXX Combination
5 Realizing Full Potential of ISS STOXX Combination Significant Index Growth Opportunity Our Right to Win Penetration into European Buyside Iconic Brands: (€0.7Bn TAM in 2024) ~2,000 Cross-sell Opportunity into Existing Client Asset Management Relationships Base Unified Sales Function US Index Expan
Slide 22: Proven M&A Track Record Positions Us to be Consolidator of Choice
Proven M&A Track Record Positions Us to be Consolidator of 5 Choice in Fragmented Market M&A Strategy Pillars Integration Blueprint Principles Experienced pre- and post-close Address product or deal teams capabilities gap Well defined integration guidelines Enhance scale in certain segments Day 1 in
Slide 23: Highly Experienced Management Team with Strong Track Record of Execution
Highly Experienced Management Team with Strong Track Record 6 of Execution GARY RETELNY CHRISTOPH HANSMEYER ALLEN HEERY President & CEO Chief Financial Officer Chief Operating Officer & Chief Administrative Officer Deutsche Börse Group MSCI 40+ 14 Allianz Goldman Sachs 25+ 2 MSCI 35+ 12 LORRAINE KEL
Slide 24: Unlocking ISS STOXX Potential as an Independent Entity
Unlocking ISS STOXX Potential as an Independent Entity Reinforce Independence, Transparency and Governance Strengthen Brand Recognition Greater Flexibility in Resource Allocation to Capture the Opportunity Set Create Attractive M&A Currency Attract and Retain Talent 24
Slide 25: Glossary
Glossary Term Definition Adjusted EBITDA is defined as profit for the period before (i) income tax expense, (ii) financial expense, (iii) financial income, (iv) profit/loss after tax for the period from discontinued operations, (v) depreciation, amortization and impairment losses and (vi) certain ad
Slide 26: End Notes
End Notes Notes Definition A leading position in Governance, taking into account the geographical coverage, scope of offered solutions (for proxy research, proxy voting, vote disclosure and proxy Note 1 platform) and breadth of customer segments (for asset managers, asset owners and hedge funds) Top
Slide 27: Disclaimer
Disclaimer Please read the following before continuing. By accessing this presentation, you agree to be bound by the following limitations. This material should be considered in the context in which it is provided, and should not be taken out of context. This presentation has been prepared for infor
Slide 28: Disclaimer (Cont’d)
Disclaimer (Cont’d) This presentation includes "forward-looking statements". Many of the forward-looking statements can be identified by the use of forward-looking words such as “aim”, “anticipate”, “believe”, “can”, “could”, “expect”, “should”, “plan”, “project” “intend”, “estimate” “target”, “will
Slide 29: Independence
Independence ISS STOXX is principally owned by Deutsche Börse AG (“DB1”), a public company headquartered in Germany. ISS STOXX and DB1 have formally adopted policies on non-interference and potential conflicts of interest related to DB1. Among other things, these policies are intended to establish a