Deutsche Boerse Ag · XETR:DB1

Deutsche Boerse — Deutsche Börse Group — Q3 2014 Earnings Presentation

22 slides from Deutsche Boerse's earnings presentation, Oct 28, 2014

  1. Slide 1: Q3/2014 Results Analyst and Investor Conference Call

    Q3/2014 Results Analyst and Investor Conference Call 28 October 2014

  2. Slide 2: Highlights Q3/2014 Results Presentation

    Q3/2014 Results 28 October 2014 Deutsche Börse Group 1 Highlights Q3/2014 Results Presentation  Higher equity market volatility towards the end of Q3 supported derivatives and cash activities; Clearstream and Market Data + Services continued its positive performance  Net revenue in Q3 amounted to

  3. Slide 3: Q1-3/2014 – Development Of Group And Segmental Financials

    Q3/2014 Results 28 October 2014 Deutsche Börse Group 2 Q1-3/2014 – Development Of Group And Segmental Financials Group Segments Net revenue Eurex Xetra Clearstream MD+S €1,498.5 million (+4%) Net rev. Net rev. Net interest income +2% +7% €28.4 million (+3%) 569 581 518 484 Net rev. Operating costs1

  4. Slide 4: Q3/2014 – Development Of Group Financials

    Q3/2014 Results 28 October 2014 Deutsche Börse Group 3 Q3/2014 – Development Of Group Financials Net revenue Operating costs Earnings per share €m €m1 €1,2 514 1.00 488 496 473 0.90 458 0.83 0.85 0.74 268 266 236 243 249 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q3/13 Q4/13 Q1/14 Q

  5. Slide 5: Q3/2014 – Eurex

    Q3/2014 Results 28 October 2014 Deutsche Börse Group 4 Q3/2014 – Eurex Business activity Q3/2014 y-o-y Net revenue Financial derivatives (traded contracts in m) €m +13% US Options 147.0 3% Equity 56.7 -24% 207 18 191 Fixed income 111.6 -5% 183 Others2 169 172 11 19 15 18 Repo Index 169.3 11% 13 17 9

  6. Slide 6: Q3/2014 – Xetra

    Q3/2014 Results 28 October 2014 Deutsche Börse Group 5 Q3/2014 – Xetra Business activity Q3/2014 y-o-y Net revenue Order book volume in €bn1 €m -5% +5% 44 295 40 280 38 7 38 37 9 9 8 8 8 Others2 8 6 7 7 CCP 28 23 24 23 23 Trading Q3/13 Q3/14 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 1) Xetra, Börse Frankfurt an

  7. Slide 7: Q3/2014 – Clearstream

    Q3/2014 Results 28 October 2014 Deutsche Börse Group 6 Q3/2014 – Clearstream Business activity Q3/2014 y-o-y Net revenue €m +9% Assets under 170 173 175 €12.2tr 6% 170 custody 160 29 30 29 Others2 30 25 Settlement 10 10 NII 29.8m 2% 8 8 transactions 8 16 GSF 15 16 16 15 GSF 29 33 30 29 Settlement €6

  8. Slide 8: Q3/2014 – Market Data + Services

    Q3/2014 Results 28 October 2014 Deutsche Börse Group 7 Q3/2014 – Market Data + Services Business activity Q3/2014 y-o-y Net revenue Information €m +4%  Derivatives/ cash market data, indicators, news 94 94 95 93 Data subscriptions 413,477 2% 89 Market 8 9 11 6 7 Solutions Index 29 27 27 27 Tools 

  9. Slide 9: Q3/2014 – Growth Areas Continue To Build Traction

    Q3/2014 Results 28 October 2014 Deutsche Börse Group 8 Q3/2014 – Growth Areas Continue To Build Traction Eurex – Kospi, volatility, dividend, OAT, BTP Eurex – EEX power & gas m1 19.8 TWh2 549 BTP & OAT 14.6 36% Gas 377 148 +46% Dividend 10.4 Power Volatility 5.4 48 Kospi 1.9 2.0 401 1.5 2.4 329 5.7

  10. Slide 10: Q4/2014 – Return Of Volatility Resulted In Significant Volume Improvement In October

    Q3/2014 Results 28 October 2014 Deutsche Börse Group 9 Q4/2014 – Return Of Volatility Resulted In Significant Volume Improvement In October Eurex – All products Eurex – US Options 10.5 3.4 8.0 8.7 8.3 2.6 2.7 7.4 2.3 2.3 Q4/13 Q1/14 Q2/14 Q3/14 Q4/141 Q4/13 Q1/14 Q2/14 Q3/14 Q4/141 Average daily tra

  11. Slide 11: Management Is Firmly Focused On Growing The Business, Effective Cost Management, And Attractive Capital Management

    Q3/2014 Results 28 October 2014 Deutsche Börse Group 10 Management Is Firmly Focused On Growing The Business, Effective Cost Management, And Attractive Capital Management Ambitious growth targets  20-40% net revenue growth target 2013-2017  Primarily organic growth, but also partnerships and compl

  12. Slide 12: Growth – EurexOTC Clear Service Offering Addresses Client Needs In New Regulatory Environment

    Q3/2014 Results 28 October 2014 Deutsche Börse Group 11 Growth – EurexOTC Clear Service Offering Addresses Client Needs In New Regulatory Environment Value proposition Description 1 Only fully integrated cross-asset class clearing house in Unique position to be Integrated full asset Europe: market l

  13. Slide 13: Growth – Expansion Of Successful Collateral Management Services Under Global Liquidity Hub Initiatives

    Q3/2014 Results 28 October 2014 Deutsche Börse Group 12 Growth – Expansion Of Successful Collateral Management Services Under Global Liquidity Hub Initiatives Global infrastructure provider Value proposition: Brazil (live) Australia (2013) Exposure Global Liquidity Hub Liquidity Hub GO locations ini

  14. Slide 14: Growth – TARGET2-Securities, A Unique Opportunity For Clearstream

    Q3/2014 Results 28 October 2014 Deutsche Börse Group 13 Growth – TARGET2-Securities, A Unique Opportunity For Clearstream T2S will change the post-trade landscape … … bringing benefits to customers  Cash pooling: central funding account for all T2S Bank/ Global Custodian settlement enables settleme

  15. Slide 15: Growth – Deutsche Börse Group’s Asian Growth Initiatives Are Based On Successful Expansion Of Business

    Q3/2014 Results 28 October 2014 Deutsche Börse Group 14 Growth – Deutsche Börse Group’s Asian Growth Initiatives Are Based On Successful Expansion Of Business 2007 2013 Current initiatives  Build-up of clearing house for Sales revenue <€50 million >€100 million derivatives in Singapore  Strategic

  16. Slide 16: Growth – Substantial Incremental Revenue From Structural And Cyclical Drivers Expected

    Q3/2014 Results 28 October 2014 Deutsche Börse Group 15 Growth – Substantial Incremental Revenue From Structural And Cyclical Drivers Expected Illustration of mid- to long-term net revenue opportunities €m Product Structural opportunities Cyclical opportunities innovation ~2,300- ~100-300 2,700 ~100

  17. Slide 17: Capital Management – Strong Cash Flow Generation Allows For Strong Rating Profile And Attractive Distribution Policy

    Q3/2014 Results 28 October 2014 Deutsche Börse Group 16 Capital Management – Strong Cash Flow Generation Allows For Strong Rating Profile And Attractive Distribution Policy Strong cash flow, balance sheet and rating Attractive dividend distribution Pay-out ratio (%)2 Strong balance sheet 49 50 51 38

  18. Slide 18: Appendix

    Q3/2014 Results 28 October 2014 Deutsche Börse Group 17 Appendix

  19. Slide 19: Income Statement – Group Level Adjusted

    Q3/2014 Results 28 October 2014 Deutsche Börse Group 18 Income Statement – Group Level Adjusted Quarter ended Quarter ended 30 September 2014 30 September 2013 Sales revenue 570.6 520.8 Net interest income from banking business 9.6 8.1 Other operating income 5.9 3.8 Total revenue 586.1 532.7 Volume-

  20. Slide 20: Income Statement – Segmental Level Adjusted

    Q3/2014 Results 28 October 2014 Deutsche Börse Group 19 Income Statement – Segmental Level Adjusted Eurex Xetra Clearstream Market Data + Services Q3/2014 Q3/2013 Q3/2014 Q3/2013 Q3/2014 Q3/2013 Q3/2014 Q3/2013 Sales revenue1 226.5 194.0 44.1 44.7 207.8 191.9 101.9 97.4 Net interest income from bank

  21. Slide 21: Financial Calendar And Contact Details

    Q3/2014 Results 28 October 2014 Deutsche Börse Group 20 Financial Calendar And Contact Details Financial calendar Contact details 18 Feb 2015 Preliminary results Q4 and FY 2014 Deutsche Börse AG 19 Feb 2015 Conference call Q4 and FY 2014 Investor Relations 29 Apr 2015 Interim report Q1/2015 Mergenth

  22. Slide 22: Disclaimer

    Q3/2014 Results 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 an

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