Deutsche Boerse Ag · XETR:DB1
Deutsche Boerse — ISS Stoxx — Investor Day (June 2025)
130 slides from Deutsche Boerse's investor day presentation, Jun 30, 2025
Slide 1: Powering the investment process through unique data and insights
Powering the investment process through unique data and insights Investor Day 30th June 2025 I S S - S T OX X . C O M
Slide 2: Introduction
01. Introduction Gary Retelny I President and CEO
Slide 3: Today's Agenda
Today’s Agenda Topic Presenters Introduction Gary Retelny Key Company Highlights Gary Retelny Stewardship Solutions Lorraine Kelly Index Axel Lomholt Market Intelligence Ben Doob Corporate Solutions Marija Kramer Technology & Operations Allen Heery Financial Overview Christoph Hansmeyer Closing Rema
Slide 4: Our Mission
Our Mission Providing proprietarily-sourced, customized and derived data, analytics, and models to assist clients in making and executing informed investment decisions 4
Slide 5: 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 6: 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 7: 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 8: Leveraging the Combined Power of ISS STOXX
Leveraging the Combined Power of ISS STOXX Two Unique Heritage Brands with Recognition Across Financial Markets Participants We share our story, product Unified sales function creating Marketing leverages brand and Broad common data lake suites and synergies with cross-sell and up-sell holistic valu
Slide 9: We Support Clients Across the Investment Process
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 & responsible
Slide 10: Adding Significant Value Across Their Workflows
…Adding Significant Value Across Their Workflows 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 topics Raising r
Slide 11: Global Reach with Deep Local Expertise and Understanding of Regional Markets
Global Reach with Deep Local Expertise and Understanding of Regional Markets APAC 118 Markets covered 5% ~2,220 2024 Revenue FTEs 20 Countries of presence America 3,800+ 49% EMEA FTEs ~820 2024 Revenue FTEs 46% 2024 Revenue ~800 FTEs 56% Workforce located in Local Office Locations emerging markets N
Slide 12: We Serve a Large and Growing Market Supported by Favourable Underlying Trends
We Serve a Large and Growing Market Supported by Favourable Underlying Trends Across All Segments of Our Business Substantial Market Opportunity and Growth Runway… …Across All Segments of Our Business… TAM CAGR 2024–2029 10%(2) €25.3Bn 6% TAM CAGR(1) 7% TAM 2029(1) 2024-2029 5% 6.0 4% 4.5 €17.0Bn 3.
Slide 13: Unique Breadth and Depth of Services Relative to Competitors
Unique Breadth and Depth of Services Relative to Competitors Market Position Competitive Landscape Stewardship Solutions: Glass Lewis A Global market leader(1) Governance Egan-Jones Ethos Stewardship Solutions: MSCI Sustainalytics(6) Top 3 global provider(2) Sustainability Bloomberg S&P Global #2 Eu
Slide 14: Highly Attractive and Diversified Client Portfolio
Highly Attractive and Diversified Client Portfolio Focused on Attractive Buy-side Segment Growth… Run Rate Split by Client Type Scale Loyal Hedge Funds Corporates 76% Penetration in S&P 500 Other(2) Companies(1) 3% 11% 5k+ ~90% Clients Retention Rate(3) 28% €609MM Diversified Longevity Run Rate 4% 5
Slide 15: Substantial White Space to Grow Wallet Share of Existing Clients
…With Substantial White Space to Grow Wallet Share of Existing 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 St
Slide 16: Proprietary, High-Quality Datasets with Differentiated Customization Capabilities
Proprietary, High-Quality Datasets with Differentiated Customization Capabilities • Vast amount of data with global • ~8MM daily index data points managed coverage Data Sourcing • 99.5% data accuracy(1) and Curation • Comprehensive, relevant and accurate • Longevity and reusability • ~40 years longe
Slide 17: AI Expected to Further Drive Growth and Efficiency Over Time
AI Expected to Further Drive Growth and Efficiency Over Time Clear Opportunities to Drive Growth with AI… …Complementing Our Competitive Advantage • Improving efficiency by using deep learning to Researcher analyze research articles Data collection effectiveness that has been acquired by ISS STOXX o
Slide 18: Attractive Financial Profile with High Predictability and Strong Cash Flow Generation
Attractive Financial Profile with High Predictability and Strong Cash Flow Generation Scaled & €638MM 95% ~90% Predictable Total Income(1) Recurring Revenue Retention Rate Business Model Compounding +8% Proven M&A engine Growth 2020-2024 Total Income FX 20 acquisitions since 2014 Adj. CAGR(2) Profit
Slide 19: Building Blocks of Sustainable Future Growth
Compelling Building Blocks of Sustainable Future Growth Realize full Increase Strategic actions Product Geographic AI / Technology Execute on benefits of ISS penetration and to re-accelerate innovation expansion to further drive M&A strategy STOXX wallet share with growth in Market particularly in o
Slide 20: Realizing Full Potential of ISS STOXX Combination
Realizing Full Potential of ISS STOXX Combination Significant Index Growth Opportunity Our Right to Win Penetration into European Buy-side Iconic Brands: (€0.7Bn TAM in 2024) ~2,000 Cross-sell Opportunity into Asset Management Relationships Existing Client Base Unified Sales Function US Index Expans
Slide 21: Proven M&A Track Record Positions Us to be Consolidator of Choice
Proven M&A Track Record Positions Us to be Consolidator of 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 integ
Slide 22: Highly Experienced Management Team
Highly Experienced Management Team with Strong Long-Term Track Record 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 LORR
Slide 23: Equity Story Pillars
Equity Story Pillars Powering the Investment Process by Offering an Indispensable Value Accretive 1 Product Suite Globally 2 Large and Growing Total Addressable Market with Favourable Underlying Trends Highly Attractive and Diversified Client Portfolio Focusing on the Buy-side with 3 White Space for
Slide 24: Stewardship Solutions
02. Stewardship Solutions Lorraine Kelly
Slide 25: Stewardship Solutions
Maintain our position as the Global Leader in Corporate Governance and Proxy Stewardship Solutions Advisory while growing to Leading Global Provider of Sustainability Data, Analytics, and Services
Slide 26: Stewardship Solutions at a Glance
Product Deep-Dive Stewardship Solutions Stewardship Solutions Overview Governance Sustainability Financials and Strategy Stewardship Solutions at a Glance We are a service business, acting in accordance with clients’ mandates and preferences Core to investment manager's role as a fiduciary Stewardsh
Slide 27: Compelling Market Opportunity Driven by Long-Term Structural Trends
Product Deep-Dive Stewardship Solutions Stewardship Solutions Overview Governance Sustainability Financials and Strategy Compelling Market Opportunity Driven by Long-Term Structural Trends €5.7Bn TAM 2029 Shift to passive Passive sustainability investing driving products gaining momentum of pass- mo
Slide 28: Increasingly Complex Environment in Which We Are Well-Positioned
Product Deep-Dive Stewardship Solutions Stewardship Solutions Overview Governance Sustainability Financials and Strategy Increasingly Complex Environment in Which We Are Well-Positioned to Address Our Clients’ Evolving Demands Key Recent Trends Stewardship Solutions Positioning We are a neutral serv
Slide 29: We Have a Strong Competitive Positioning
Product Deep-Dive Stewardship Solutions Stewardship Solutions Overview Governance Sustainability Financials and Strategy We Have a Strong Competitive Positioning Top 3 player in highly fragmented market, A global market leader(1) with opportunity to gain market share(2) Client Testimonials Client Te
Slide 30: ISS Governance at a Glance
Product Deep-Dive Stewardship Solutions Stewardship Solutions Overview Governance Sustainability Financials and Strategy ISS Governance at a Glance Pioneer in Proxy Advisory, with 40 Years of Experience rt Da o p n Indices Off -th tio e- vaup ed S ta Inno S iz he m lf A Leading Global Brand to Ind C
Slide 31: We Support Our Clients across Every Step of Their Stewardship Mandates
Product Deep-Dive Stewardship Solutions Stewardship Solutions Overview Governance Sustainability Financials and Strategy We Support Our Clients across Every Step of Their Stewardship Mandates A B C Data and Decision Making Infrastructure Disclosure Benchmark Governance Research ProxyExchange Vote Di
Slide 32: ISS Sustainability at a Glance
Product Deep-Dive Stewardship Solutions Stewardship Solutions Overview Governance Sustainability Financials and Strategy ISS Sustainability at a Glance A Natural Choice Glob for Sustainability-focused pital al re lc a a Investors a ch ctu wi lle Covering Full Spectrum th Unique inte loca of Client N
Slide 33: We Support Investors Across All Their Mandates
Product Deep-Dive Stewardship Solutions Stewardship Solutions Overview Governance Sustainability Financials and Strategy We Support Investors Across All Their Mandates… Sustainability Exclusions Excluding non-complying companies from investable universe Compliance And Sustainability Regulation Integ
Slide 34: By Leveraging Our Comprehensive Product Suite
Product Deep-Dive Stewardship Solutions Stewardship Solutions Overview Governance Sustainability Financials and Strategy …By Leveraging Our Comprehensive Product Suite A B C D Ratings & Regulatory Climate & Nature Data Solutions Screening Solutions High quality data & Access to material Monitoring p
Slide 35: Unique Lake of Sustainability Data Powering Our Index Product Suite
Product Deep-Dive Stewardship Solutions Stewardship Solutions Overview Governance Sustainability Financials and Strategy Unique Lake of Sustainability Data Powering Our Index Product Suite ISS Sustainability Powers Index With Data… …Significantly Enhancing Index Value Proposition Enable World-class
Slide 36: Attractive and Diversified Client Portfolio
Product Deep-Dive Stewardship Solutions Stewardship Solutions Overview Governance Sustainability Financials and Strategy Attractive and Diversified Client Portfolio We Serve a Wide Range of Clients... …Across the Globe Run Rate per Client Type % Run Rate contribution of clients by region(2) 2,000+ H
Slide 37: Substantial White Space to Grow Wallet Share in Existing Client Base
Product Deep-Dive Stewardship Solutions Stewardship Solutions Overview Governance Sustainability Financials and Strategy We Expect to Benefit from a Substantial White Space to Grow Wallet Share in Existing Client Base Through Cross- and Up-sell Opportunities Material Whitespace in Existing Client Ba
Slide 38: Strategy to Increase Our Wallet Share
Product Deep-Dive Stewardship Solutions Stewardship Solutions Overview Governance Sustainability Financials and Strategy Strategy to Increase Our Wallet Share Unified Sales Function Well-Tested Marketing Approach Product Innovation Strategy Sales team structured by Continue leveraging strength Conti
Slide 39: Subscription Based Business with Attractive Growth Dynamics
Product Deep-Dive Stewardship Solutions Stewardship Solutions Overview Governance Sustainability Financials and Strategy Subscription Based Business with Attractive Growth Dynamics Revenue Run Rate €MM FX Adj. YoY Growth • 6.5% 22-24A FX Adj. CAGR, with Governance business 22-24A FX Adj. CAGR growin
Slide 40: Tangible Roadmap for Long-term Growth
Product Deep-Dive Stewardship Solutions Stewardship Solutions Overview Governance Sustainability Financials and Strategy Tangible Roadmap for Long-term Growth Product Innovation and Leverage In-house Geographic Expansion Strong Potential for Asset Class Coverage Integrated Platform and By growing ou
Slide 41: Key Takeaways
Key Takeaways Global Leading Brand in Corporate Governance and Top 3 Global Player in 1 Sustainability 2 Proprietary Data Enabling Best-in-class Raw Data and Bespoke Products Stewardship 3 Unique Intellectual Capital Creating Strong Competitive Advantage Solutions 4 Highly Attractive, Buy-side-focus
Slide 42: Index
ISS STOXx > 03. Index Axel Lomholt
Slide 43: To become a global, innovation led index provider
To become a global, innovation led index provider with customization expertise at scale, leveraging the strength of the brand
Slide 44: STOXX at a Glance
STOXX at a Glance ~90% Share of STOXX and DAX in equity index derivatives nn Of va io tio es f ~60% Da Innnnoovat ic -th Ind e- ta Share in structured products issued in Sh Buy-side / d ize elf Asset Owners Europe(1) Custom Indic I es ETF Issuers Exchanges $226Bn Fund assets under management(2) Sell
Slide 45: History of Innovation and Continued Growth
History of Innovation and Continued Growth 1988 1998 2009 2022 Launch of DAX Launch of EURO STOXX 50 iShares launches Launch of STOXX World index and STOXX Europe 600 STOXX Global Select Equity Indices Dividend 100 ETF 1997 2007-2009 2015 2023 STOXX founded by Xtrackers launch Extends smart-beta Com
Slide 46: Holistic Product Suite Addresses a Broad Variety of Client Use Cases
Holistic Product Suite Addresses a Broad Variety of Client Use Cases Portfolio Construction Offering a comprehensive range of equity indices, providing investors with attractive, fully transparent investment solutions Portfolio Management Investable Products Index replication and index Aligning capi
Slide 47: We Offer Index Solutions Across the Entire Investment Spectrum
We Offer Index Solutions Across the Entire Investment Spectrum Investment Spectrum Traditional Beta Alpha Core Building Blocks Slice & Dice Customization Co-Design & Co-Creation Product Innovation ISS STOXX Index Capability: ▪ Off-the-Shelf: Benchmark, ▪ Product extension building on ▪ Bottom-up inv
Slide 48: We Have Created a Scaled Index Production Machine
We Have Created a Scaled Index Production Machine Cumulative Number of Unique Indices Launched Global Index Split by Index Type(3) Other(2) Cumulative Number of Indices Launched since 1998(1) iNAV 4% 8% 20,000 18,000 WLI Benchmarks 16% 39% 16,000 14,000 Factors 11% 12,000 Sustainability Alternative
Slide 49: Strong Momentum from Acceleration of Flows into ETFs
Strong Momentum from Acceleration of Flows into ETFs Global Selected Index Providers – ETF YTD Flows as Percent of Dec-24 AUM Net New Assets, May 2025, YTD %(1) 17.5% 5.7% 4.4% 4.5% 2.2% 2.2% 3.0% FTSE S&P CRSP Bloomberg MSCI Nasdaq Russell Notes: 1. Calculated as YTD ETF Net New Assets (as of the e
Slide 50: Significant Synergy Opportunity from STOXX and ISS Combination
Significant Synergy Opportunity from STOXX and ISS Combination STOXX and ISS Combination Core Capabilities for Index Clients STOXX ETF AUM(1) €Bn 22-24A CAGR ✓ Product innovation focus Data to enable world-class 1 ✓ Deep customization expertise portfolio construction 29.1 Customization and proprieta
Slide 51: Our Growth Ambition is Underpinned by Expansion of Our Addressable Market
Our Growth Ambition is Underpinned by Expansion of Our Addressable Market Historically Focused on EMEA Sell-side... …We See Buy-side and US Expansion as Next Growth Opportunities +€3.7Bn US(2) TAM(1) Sell-side and 11% CAGR Buy-side 2024-29 +€0.7Bn EMEA TAM(1) Buy-side 15% CAGR 2024-29 EMEA Sell-Side
Slide 52: Strong Structural Trends Driving Expansion of Our Market
Strong Structural Trends Driving Expansion of Our Market ETFs Customization Sustainability Continued demand for ETFs Growing demand for highly Growing role of and passive investment customized benchmarks sustainability in investment products themes Thematic Indices Investment Union Sustained interes
Slide 53: Only Provider at Scale Well Positioned to Compete With Incumbents
Only Provider at Scale Well Positioned to Compete With Incumbents Asset Class Coverage A leading equity index provider(1) with iconic S&P Dow Jones FTSE brands, well-positioned to penetrate European Indices Russell buy-side and US market MSCI Client Testimonials “We consider ISS STOXX a credible cha
Slide 54: Diversified Client Base With a High Retention Rate
Diversified Client Base With a High Retention Rate We Serve a Wide Range of Clients... …Across the Globe Run Rate per Client Type % Run Rate Contribution of Clients by Region(1) Other / Data ~450 Buy-side / Asset Dissemination 9% Sell-Side / Banks Owner 18% 34% APAC 2% Clients served Growing into Do
Slide 55: Substantial Whitespace to Grow Wallet Share in Existing Client Base
Substantial Whitespace to Grow Wallet Share in Existing Client Base Through Cross- and Up-sell Opportunities Significant Whitespace in Existing Client Base Strategy to Increase Wallet Share 2024, €MM 17% Wallet Share 1,390 Expand buy-side reach Advance customization Focused Sales Function by leverag
Slide 56: Case Studies of Recent Wins Over Incumbents
Case Studies of Recent Wins Over Incumbents Sell-side Buy-side Banks & Exchanges Asset Owners / Asset Managers / ETF Issuers Brand Co-design and Co-Creation Approach • Leader in European exposure, well recognized by end investors • Dedicated subject matter client facing teams, and design and quant a
Slide 57: Strong Growth Track Record with Continued Momentum
Strong Growth Track Record with Continued Momentum Revenue Run Rate €MM FX Adj. YoY Growth • High single-digit subscription growth 22-24A FX Adj. CAGR Non- • Key growth drivers include Recurring expansion to the buy-side as Asset & 2% +9.7% +4.4% well as a strong sell-side Transaction business Based
Slide 58: Well Positioned to Drive Long-Term Growth
Well Positioned to Drive Long-Term Growth Customization and Buy-side Opportunity US Opportunity M&A Product Strategy Expand into the Buy-side Expand into the US(1) market, a M&A and partnership Continue customization strategy segment by building on our €3.7Bn opportunity, expected to opportunities,
Slide 59: Key Takeaways
Key Takeaways 1 Iconic Brands that are Well Recognized within Financial Markets 2 Strong Foothold as a Leader in European Equity Benchmarks 3 Deep Focus on Innovation and Customization 4 Attractive Market with Significant Tailwinds 5 Strategy in Place to Deliver Attractive and Sustainable Long-term
Slide 60: Market Intelligence
04. Market Intelligence Ben Doob
Slide 61: To provide the most accurate and trusted information
To provide the most accurate and trusted information on the firms, people, and products essential to the financial services industry, empowering client growth through actionable data, analytics, and go-to-market solutions
Slide 62: Market Intelligence at a Glance
Market Intelligence at a Glance 137Tn+ AuM in coverage globally 600+ Product Team Members 218k+ Funds in coverage 130k+ Financial firms in coverage Data & Insights 3.2MM+ Professionals and key staff in coverage Distribution Media €103MM Run Rate Notes: Run rate as of Dec-2024; all other metrics per
Slide 63: Track Record of Data Coverage and Product Suite Expansion
Track Record of Data Coverage and Product Suite Expansion Launch of MI Stabilisation and Integration Product Suite Enhancement Established in 2019 with acquisition of Strategic Insight, a renowned global brand 2019 2021 We further solidified our Launch of MI business by gradually Business 2021 enhan
Slide 64: Clients Require Accurate Data and Targeted Insight
Clients Require Accurate Data and Targeted Insight to Succeed in a Dynamic Financial Services Ecosystem… …Are Navigating Increasingly Complex Information Flows While Facing Our Clients… Unprecedented Challenges Across Multiple Fronts(1) Scale of Data Churn of Data 137Tn+ 218k+ 2.0Bn AuM globally Fun
Slide 65: Which Market Intelligence is Well Positioned to Provide
…Which Market Intelligence is Well Positioned to Provide Market Intelligence’s Global One-stop Shop Product Suite Market sizing, competitor profiling Research and benchmarking informing client strategy Comprehensive directory of potential partners enabling clients to identify points of distribution
Slide 66: Client Case Studies on MarketPulse and MarketPro
Client Case Studies on MarketPulse and MarketPro MarketPulse: Providing Comprehensive Fund Flow Datasets MarketPro: Identifying the Right Points of Distribution Client Client S&P 500 Asset Manager Global Investment Manager Situation Situation Trying to identify retirement advisors, which funds they
Slide 67: Holistic Product Suite Addresses a Broad Variety of Client Use Cases
Holistic Product Suite Addresses a Broad Variety of Client Use Cases Product Revenue Benchmark, analyze and Identify, project and meet optimize clients’ product revenue growth targets offerings Audience Talent Recruit, develop and retain Broaden client reach and the best talent to grow deepen market
Slide 68: Our Market Opportunity and Underlying Trends
Our Market Opportunity and Underlying Trends Consolidation of data vendors as our clients look for partners able to cover €2.8Bn geographies, vehicles and channels comprehensively TAM 2029 4% TAM CAGR 2024-2029 €2.3Bn Growing complexity of asset flows Current TAM translating into clients’ need for m
Slide 69: Market Intelligence Benefits From Favourable Competitive Positioning
Market Intelligence Benefits From Favourable Competitive Positioning Comprehensive offering with multi-client type coverage Client Testimonials “MarketPulse is offering most comprehensive data in the market” (US Asset Manager) “Team is super responsive and there is a lot of continuity in the team –
Slide 70: We Have a Global and Diversified Client Base
We Have a Global and Diversified Client Base We Serve a Diverse Client Base... …Across the Globe Run Rate per Client Type % Run Rate Contribution of Clients by Region(3) ~1,700 APAC 5% Clients served Other(1) 26% EMEA 24% Asset €103MM Manager €103MM Service / Technology Run Rate 55% Run Rate 2% Weal
Slide 71: Substantial Whitespace to Grow Wallet Share in Existing Client Base
Substantial Whitespace to Grow Wallet Share in Existing Client Base Through Cross- and Up-sell Opportunities Significant Whitespace in Existing Client Base… …Coupled with Clear Path to Increasing Wallet Share 2024, €MM # of products % of clients of Market Intelligence 12% Wallet Share 865 4+ 2% Cros
Slide 72: Subscription Based Business With Attractive Profitability
Subscription Based Business With Attractive Profitability Revenue Run Rate €MM FX Adj. YoY Growth • High share of subscription- based revenue 22-24A FX Adj. CAGR • Non-recurring revenue relates primarily to Media and SCAS (2.4%) (4.4%) businesses (re-occurring) Non-Recurring 16% • Segment impacted f
Slide 73: Immediate Strategic Actions to Drive Organic Growth
Immediate Strategic Actions to Drive Organic Growth People Go-to-Market Product Innovation Refresh the product suite, in step with latest trends and our clients’ Streamline global organisation and Restructure and strengthen our requirements increase the proportion of FTEs in sales function, introduc
Slide 74: Our Strategy is Based Around Software, New Data and Analytics, and M&A
Our Strategy is Based Around Software and the Launch of New Data and Analytics Solutions, as Well as M&A Next-Gen Software Platform New Data & Analytics M&A Bring next-gen software platform with Solutions M&A and partnership opportunities, comprehensive delivery and Bring successful research solutio
Slide 75: Key Takeaways
Key Takeaways 1 Leading Provider of Data, Analytics, and Go-to-market Expertise 2 Unique Combination of Product and Distribution Intelligence 3 Solutions Enable Broad and Deep Relationship Potential with Clients 4 Global Capabilities Built with Local Expertise 5 Significant Opportunity to Expand Bui
Slide 76: Corporate Solutions
05. Corporate Solutions Marija Kramer
Slide 77: To help businesses become more resilient
To help businesses become more resilient by empowering them with the data, insights, and solutions they need to make informed decisions for their organization
Slide 78: Corporate Solutions at a Glance
Corporate Solutions at a Glance ~76% Penetration(1) of S&P 500 ice s Off -th D ~42% Composite Ind e- t isc ed Sh ac Program Penetration(1) of TSX iz los el Imp tom fI Execution nd ure Cus ice ~1,900 s Clients served Strategy Stakeholder Setting Reporting 41 s ark hm nc Countries covered Shareholder
Slide 79: Leveraging Power of ISS STOXX Platform to Serve Corporates Globally
Leveraging Power of ISS STOXX Platform to Serve Corporates Globally As Investors’ Scrutiny over Governance …Corporates Are Increasingly Seeking to …Which We Are Well-Positioned to Facilitate Practices Keeps Growing… Understand Shareholders’ Perspectives… Leveraging Power of ISS STOXX Platform Are ou
Slide 80: We Offer a Comprehensive Product Suite to Our Corporate Clients
We Offer a Comprehensive Product Suite to Our Corporate Clients Corporate Executive Corporate Cyber Risk Governance Compensation Sustainability Designing, managing and Designing, monitoring and Developing and managing clients’ Estimating cyber risk profiles of measuring clients’ corporate communicat
Slide 81: Case Study: Understanding Shareholder Perspectives, Risk Mitigation and Program Management
Case Study: Understanding Shareholder Perspectives, Risk Mitigation and Program Management Overview In Action: Client Case Study CLIENT: S&P 500 Software and Services Company • On-demand data and analytical platform supporting Governance, Compensation, Sustainability and Cyber Risk Situation program
Slide 82: Substantial Market Opportunity Underpinning our Growth Runway
Substantial Market Opportunity Underpinning our Growth Runway Emerging regulations and expansion of regulatory remit driving corporate €5.9Bn sustainability solutions TAM 2029 5% TAM CAGR Growth of Corporate Governance product 2024-2029 thanks to digitization (e.g., board €4.6Bn management software)
Slide 83: Unique Market Positioning, Covering all Aspects of Corporate Governance
Unique Market Positioning, Covering all Aspects of Corporate Governance With Broad Range of Solutions A leading market position, with unique breadth and depth of product suite Client Testimonials “From a Corporate Governance research perspective there is no competitor to ISS’ platform and their repo
Slide 84: We Have an Attractive and Diverse Client Base
We Have an Attractive and Diverse Client Base We Serve a Wide Range of Clients... …Across the Globe Run Rate per Client Type Run Rate Contribution of Clients by Region(6) ~1,900 Other(4) 22% EMEA 8% APAC 3% Clients served Large-Cap 33%(3) €100MM €100MM Run Rate Run Rate Small-Cap / Private(1) 21% ~8
Slide 85: Substantial Whitespace to Grow Wallet Share in Existing Client Base
Substantial Whitespace to Grow Wallet Share in Existing Client Base Through Cross- and Up-sell Opportunities Significant Whitespace in Existing Client Base… …Coupled with Clear Path to Increasing Wallet Share Opportunity % of clients of Corporate Average Run 2024, €MM # of products Solutions Rate In
Slide 86: Well-Tested Algorithm of Increasing Wallet Share
Well-Tested Algorithm of Increasing Wallet Share Product-led expansion Targeted sales and marketing efforts Ongoing product innovation (organic and through M&A) to address Dedicated account managers that span across all product lines additional client use cases Targeted campaigns based on market tre
Slide 87: Historically Focused on the US Market, We Are Well Positioned to Acquire New Logos
Historically Focused on the US Market, We Are Well Positioned to Acquire New Logos in EMEA and APAC Penetration by Key Global Indices % Penetration(1) by Number of Index Constituents North American Indices European Indices APAC Indices 76% 61% 44% 42% 28% 18% 19% 23% 23% 12% 11% KRX 100 FTSE 350 STO
Slide 88: Subscription Based Business Model With Consistent Growth
Subscription Based Business Model With Consistent Growth Revenue Run Rate €MM FX Adj. YoY Growth • High share of subscription- based revenue 22-24A FX Adj. CAGR • Solid mid-to-high single-digit Non-Recurring growth over the years 8% +9.1% +4.8% • 2024 slightly impacted from some cyclicality in reven
Slide 89: Actionable Plan for Sustainable Growth Based on Four Key Pillars
Actionable Plan for Sustainable Growth Based on Four Key Pillars Innovate Monetize Expand M&A Continued SaaS-based product Extensive cross- and up-selling Expand in EMEA and APAC to M&A and partnership innovation across four “sticky” strategy to existing clients, capture market share with opportunit
Slide 90: Key Takeaways
Key Takeaways 1 Differentiated and Actionable Data, Analytics and Insights 2 Attractive Subscription-based Business Model 3 Established and Well-tested Go-to-market Engine Significant Growth Potential Across Products, Client Segments, and 4 Geographies 90
Slide 91: Operations and Technology
06. Operations and Technology Allen Heery I COO and CAO
Slide 92: We Have Strong Track Record of Enhancing Operational Efficiency
We Have Strong Track Record of Enhancing Operational Efficiency Our Robust Operational Model and Focus Areas Global Operation with Local Presence 1 Data & Operations teams located all over the world, providing differentiated and 20 highly specialized local expertise and knowledge Countries of presen
Slide 93: We Are Running a Global Data and Operations Platform
We Are Running a Global Data and Operations Platform with 1 Deep Local Expertise EMEA ~160 FTEs 10 Offices Americas ~110 FTEs 7 Offices APAC ~940 FTEs 5 Offices Local Office Locations Notes: All metrics as of Dec-2024. FTE and office figures across the page refers to data and operations FTEs and off
Slide 94: Employee Base Mostly Located in Emerging Markets
Employee Base Mostly Located in Emerging Markets 2 Contributing to Efficiency of Operations FTEs by Location(1) FTEs by Function(1) Number of Data and Operations FTEs Number of Data and Operations FTEs YoY Growth, % +3.7% +11.7% YoY Growth, % +3.7% +11.7% 1,214 1,214 1,047 1,087 1,047 1,087 320 248
Slide 95: Highly Tailored Processes Designed to Enable Outstanding Service Quality
Highly Tailored Processes Designed to Enable Outstanding 3 Service Quality Similar Processes Across Operations Audit, Administration and Report and Core Acquire Process Governance Operations Data Acquisition and Cleansing Data Mastering Data Control Data Distribution • Gather raw data from various •
Slide 96: We Are on a Journey to Improve Data Collection and Treatment Processes
We Are on a Journey to Improve Data Collection and 3 Treatment Processes Past Today High share of manual labour in ✓ Programmed methodologies for collection Raw Data raw data collection ✓ Flexibility to change methodology ✓ Separate domain databases Data Stores ✓ Data models and tools appropriate fo
Slide 97: ISS: Flexible Operating Platform Built to Drive Data Advantage
ISS: Flexible Operating Platform Built to Further Drive our Data 3 and Intellectual Capital Advantage Data Central Source Repository Products Company and Security Data 1,000,000+ ~4.8MM Research analysis Documents per year procured since 2021 Active security families Proprietary Voting ~8,800,000 de
Slide 98: STOXX: Technology-Enabled Architecture Driving Superior Product Quality
STOXX: Technology-Enabled Architecture Driving Superior 3 Product Quality Source Inbound Outbound Google Google Cloud Cloud Data Source Market Data Platform Index Platform Data Distribution Data Index Index Research 3rd Party Data Ingestion Products Data Existing ‘Output’ Data Index Review (Index Le
Slide 99: Our Leading Proprietary Tech Stack Allows Us to Scale at Pace
4 Our Leading Proprietary Tech Stack Allows Us to Scale at Pace ▪ System deployment and ▪ Multi-tenanted architecture ▪ Event-driven data flow ▪ Design and development management collaboration tools ▪ Structured and unstructured data ▪ Scalable workflows ▪ Feature rich Java script frameworks ▪ Healt
Slide 100: AI Expected to Further Drive Growth and Efficiency Over Time
4 AI Expected to Further Drive Growth and Efficiency Over Time Our Key AI Development Tenets… …Underpinning Clear Opportunities to Drive Growth Humans will remain critical to our success • Improving efficiency by using deep learning to Researcher analyse research articles effectiveness • AI augmenta
Slide 101: AI Is a Critical Enabler for ISS STOXX Mission
4 AI Is a Critical Enabler for ISS STOXX Mission Our Current Capabilities Our AI Aspiration Building the foundations for the future, developing data infrastructure We aspire to deliver client value with AI at the intersection of our at the Group level, with several live use cases in the business uni
Slide 102: Our AI Journey
4 Our AI Journey Controversial article finder Web crawling Translation toolkit Stewardship Solutions Meeting agenda extraction AI in custom research Sustainability document finder Continuous screenings against eligibility criteria for DAX indices Index Use of unstructured metadata to generate signal
Slide 103: Financial Overview
07. Financial Overview Christoph Hansmeyer I CFO
Slide 104: ISS STOXX's Compelling Strategy is Underpinned by a Strong Financial Profile
ISS STOXX’s Compelling Strategy is Underpinned by a Strong Financial Profile 1 Highly Predictable Subscription-Based Business Model 2 Mid-to-High Single-Digit Historical Underlying Revenue Growth 3 Well-Diversified Business Across Segments, Clients and Regions 4 Attractive EBITDA Margin with Operati
Slide 105: Highly Predictable Subscription-Based Business Model
Highly Predictable Subscription-Based Business Model… Revenue by Fee Type Subscription Asset & Transaction Based Non-recurring Fixed annual recurring subscription fees Asset Based Fees (ABF) and Transaction Relates to fees predominantly in Market typically paid at the beginning of the year Based Fee
Slide 106: Track Record of Delivering Attractive Organic and Inorganic Growth
…With Track Record of Delivering Attractive Organic and Inorganic Growth Total Income(1) €MM 20-24A FX Adj. CAGR High Single-Digit Growth 638 11 Total Income 2020-2024 FX Adj. CAGR(1) 451 2 628 M&A Bolt-Ons Contributing Circa One- 449 Fifth(2) to Top Line Growth Helping Enhance Products & Data Sets
Slide 107: Robust Underlying Subscription Fees Growth
Robust Underlying Subscription Fees Growth Total Income Run Rate as a KPI €MM €MM +3.4% +4.1% +6.9% +2.9% 638 11 34 609 612 79 1 81 602 35 577 1 42 81 547 82 92 514 75 528 496 496 466 473 2022 2023 2024 2022 2023 2024 Subscription ABF & TBF Non-recurring OOI Subscription ABF & TBF FX Adj. YoY Growth
Slide 108: Attractive Business Mix with Index as the largest contributor to Run Rate
Attractive Business Mix with Index as the largest contributor to Run Rate €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 85 169 157 148 131 202
Slide 109: Well Diversified & High-Quality Revenues Across Clients and Regions
Well Diversified & High-Quality Revenues Across Clients and Regions Revenue by Geography Geographically Diversified Across EMEA As of 2024A and Americas Balanced FX Exposure, with USD Naturally Hedged Through Costs APAC 5% Diversified Client Mix with 36% of Run Rate Coming from Top 25 Clients €628MM
Slide 110: Low Operating Cost Base With Further Operating Leverage
Low Operating Cost Base With Further Operating Leverage… Adjusted EBITDA Expenses(1) Non-Compensation Breakdown €MM YoY Growth • Compensation accounts for c.71% of Adjusted EBITDA expenses(1) • Cost discipline driven by Other (3) +7.6% +1.6% 9% strategy to shift developed Voting Fees market headcoun
Slide 111: Resulting in Attractive Profitability Across All Segments
…Resulting in Attractive Profitability Across All Segments Adjusted EBITDA Adj. EBITDA Margin(1) by Segment €MM As of 2024 • Attractive Adjusted EBITDA Adj. margin, with 2024 increase demonstrating the operating EBITDA 46% 43% 44% leverage potential post ISS and Margin(1) STOXX integration 283 Index
Slide 112: High Quality of Earnings With Minimal Non-MIP Related Adjustments
High Quality of Earnings With Minimal Non-MIP Related Adjustments… in €MM 2022A 2023A 2024A • ISS STOXX’s EBITDA adjustments are mainly Result from Operating Activities (EBIT) 171.8 128.8 170.3 composed of M&A and restructuring costs as well as + Depreciation, amortization and impairment losses 77.5
Slide 113: Designed to Deliver Attractive Free Cash Flow Generation
…Designed to Deliver Attractive Free Cash Flow Generation Adjusted Free Cash Flow €MM, unless otherwise stated • Consistent high free cash flow conversion on the back of: Adj. FCF 82% 76% 91% ‒ Low working capital Conversion requirements due to pre-funding nature of subscription business 258 228 ‒ L
Slide 114: Trading Update
Trading Update YTD 2025 market environment generally remains challenging, mainly driven by longer sales cycles as well as delays in certain regulations that benefit our business Positive trends in Index which supported high single digit growth trajectory in H1, benefiting from higher variable fees b
Slide 115: Disciplined Approach to Inorganic Growth Opportunities
Disciplined Approach to Inorganic Growth Opportunities Key Characteristics Add Product Capabilities And Leverage Them Across Our Sales Force, Products and Data Sets €5MM – €50MM Strengthen and Scale Existing Businesses Target Bolt-on Range Take Advantage of the Fragmented Landscape Strong Growth Pro
Slide 116: Medium-Term Guidance (1/2)
Medium-Term Guidance (1/2) Mid-Term Guidance(3) Segmental Revenue(1,2) Index High Single-Digit CAGR Mid-to-High Single-Digit CAGR Stewardship Solutions Closer to the lower-end in the near-term Corporate Solutions Mid Single-Digit CAGR Market Intelligence Low Single-Digit CAGR Other Operating Income
Slide 117: Medium-Term Guidance (2/2)
Medium-Term Guidance (2/2) Mid-Term Guidance(3) Adjusted EBITDA Margin High 40s (Excluding SBC) Including c.€10MM of additional recurring transaction-related follow-on costs €10-15MM expensed under IFRS Share-Based Comp. (SBC) Closer to the lower-end in the near-term Capital Expenditures In line wit
Slide 118: Capital Return Framework for ISS STOXX
Capital Return Framework for ISS STOXX Organic Investments to Continue Pursue Value Accretive Bolt-On to Drive Growth M&A Opportunities Ordinary Dividends: 25-40% Dividend Extraordinary Dividends Will be Considered Payout of Adjusted Net Income for Any Excess Cash Generated Over Time 118
Slide 119: Closing Remarks
08. Closing Remarks Gary Retelny I President and CEO
Slide 120: Equity Story Pillars
Equity Story Pillars Powering the Investment Process by Offering an Indispensable Value Accretive 1 Product Suite Globally 2 Large and Growing Total Addressable Market with Favourable Underlying Trends Highly Attractive and Diversified Client Portfolio Focusing on the Buy-side with 3 White Space for
Slide 121: Additional materials
Additional materials Appendix I S S - S T OX X . C O M
Slide 122: Historical P&L – Overview
Historical P&L – Overview in €MM 2022A 2023A 2024A Revenue 600.8 611.7 627.7 Other operating income 1.1 0.6 10.7 Total income 602.0 612.3 638.3 Compensation expenses (248.9) (295.3) (276.0) Other operating expenses (103.9) (108.9) (111.3) Depreciation, amortization and impairment losses (77.5) (78.6
Slide 123: EBITDA Adjustments Bridge
EBITDA Adjustments Bridge in €MM 2022A 2023A 2024A Profit for the period 99.2 332.5 134.1 + Income tax expense 34.5 27.2 29.6 + Financial expenses 11.9 12.4 15.1 - Financial income 1.6 8.5 8.5 -/+ Profit/(loss) after tax for the period from discontinued operations 27.9 (234.8) - = Result from Operat
Slide 124: Net Income Adjustments Bridge
Net Income Adjustments Bridge in €MM 2022A 2023A 2024A Profit for the period 99.2 332.5 134.1 + Adjustment for Acquisition, Divestment & Restructuring 3.7 4.6 4.2 + Adjustment for Management Incentive Programs (MIP) 21.8 48.8 21.0 + Adjustment for One-Time Bonus - 1.0 (0.1) + Adjustment for Preparat
Slide 125: Free Cash Flow Adjustments Bridge
Free Cash Flow Adjustments Bridge in €MM 2022A 2023A 2024A Profit for the period 99.2 332.5 134.1 Net financial result 10.2 4.2 6.6 + Depreciation, amortization and impairment losses 102.3 88.5 80.3 +/- Increase/ decrease in non-current provisions 21.8 36.0 14.9 +/- Deferred tax expense/ income (3.2
Slide 126: 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 127: 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 platform) and breadth Note 1 of customer segments (for asset managers, asset owners and hedge funds) Top
Slide 128: 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 129: 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 130: 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