Deutsche Boerse Ag · XETR:DB1
Deutsche Boerse — Deutsche Börse — Debt Investor Presentation (June 2021)
19 slides from Deutsche Boerse's debt investor presentation, June 2021
Slide 1: Investor Presentation
Investor Presentation June 2021
Slide 2: Diversified, scalable and resilient business portfolio serves as the basis for growth
Diversified, scalable and resilient business portfolio serves as the basis for growth F Y / 2 0 2 0 | € 3 , 2 1 4 m n e t r e ve n u e Pre-trading Trading & clearing Post-trading €248m €1,906m €1,060m 8% 59% 33% 8% 35% 9% 3% 12% 26% 7% Qontigo | €248m Eurex | €1,110m EEX | €302m Xetra | €392m Clears
Slide 3: We successfully achieved our Roadmap 2020 targets
We successfully achieved our Roadmap 2020 targets Financial scorecard 2017 – 2020 ROADMAP 2020 TARGET ARCHIEVEMENT 9% NET 12% NET CAGR REVENUE CAGR PROFIT a d j . Strategic scorecard ▪ Delivery on secular growth target of >5% p.a. ▪ Multiple M&A deals in focus areas closed ▪ Investments in new techn
Slide 4: With Compass 2023 we target continued secular growth and an increased M&A contribution
With Compass 2023 we target continued secular growth and an increased M&A contribution Compass 2023 N e t r e ve n u e ( € b n ) EBITDA reported (€bn) ~4.3 CONTINUED SECULAR GROWTH 2.9 ~ 10% CAGR Cyclical ~0% growth INCREASED 1.7 M&A CONTRIBUTION M&A +5% growth 10% ~ CAGR Secular +5% growth 2019 202
Slide 5: Our key growth drivers are favorable capital market trends
Our key growth drivers are favorable capital market trends Major trends Our credentials OTC TO ▪ Growing importance of futurization Eurex, EEX and 360T very well ON-EXCHANGE ▪ Standardization of OTC derivatives opportunity for central clearing positioned to win market share Eurex OTC clearing is a w
Slide 6: Our secular growth ambition is based on a broad set of initiatives
Our secular growth ambition is based on a broad set of initiatives Pre-trading Tr a d i n g & c l e a r i n g Post-trading Introduce new derivatives products and build the leading OTC clearinghouse in the Eurozone Strengthen the European proposition Combine index and analytics to increase to continu
Slide 7: We will continue to pursue our successful M&A agenda
We will continue to pursue our successful M&A agenda M&A focus areas Strategic guidelines Financial guidelines ▪ Strong fit with strategic growth areas ▪ Cash earnings accretive in year 1, P r e - t r a di ng latest in year 3 ▪ Value creation for shareholders ▪ Index and analytics ▪ ESG ▪ ROI in yea
Slide 8: Mid-term secular net revenue growth opportunities fully intact
Mid-term secular net revenue growth opportunities fully intact Net revenue Growth Segment 2019 (€m) CAGR 2023E t/o secular t/o M&A Tr a di n g & Eurex 1,009 7 – 10% >5% ~1% Quantitative Brokers c l e a r i ng EEX 289 7 – 10% >5% – 360T 92 >10% ~10% – Xetra 329 0 – 3% 0% – P o s t - t r a di ng Clear
Slide 9: ISS – Innovative global leader in data, research and ESG
ISS – Innovative global leader in data, research and ESG K e y s e c u l a r g r o w t h d r i ve r s R e ve n u e g r o w t h ▪ The global leader in corporate governance for more than three decades with a rapidly growing position in broader ESG and distribution services ▪ ISS has strong and deep ex
Slide 10: Group financials
Group financials Q1/2021 Net revenue | €m EBITDA | €m Cash EPS1 | € Note −7% −12% −12% −10% (organic) −14% (organic) −13% (organic) Net interest €35m income −49% 915 €347m 855 Operating cost +9% Depreciation2 €62m 593 521 Financial result €−14m 2.05 1.81 €317m Net profit −14% EPS €1.73 Q
Slide 11: Progress on Compass 2023 targets
Progress on Compass 2023 targets Net revenue | €m EBITDA | €m Note +9% +8% ▪ Compass 2023 mid-term plan CAGR CAGR targets 10% net revenue growth (Q1/21 vs. Q1/19) (Q1/21 vs. Q1/19) CAGR (5% secular + 5% M&A) and 10% EBITDA growth CAGR. ▪ Results in Q1/20 driven by Ø 734 Ø 803 Ø 420 Ø 467 exceptional
Slide 12: Outlook FY/2021
Outlook FY/2021 N e t r e ve n u e | € m EBITDA | €m Guidance 2019 – 23 (CAGR) +10% CAGR +10% CAGR Compass 2023 target Compass 2023 target NET ~10% ~4.3bn REVENUE 2021 target: ~3.5bn EBITDA 2,936 3,214 ~10% 2021 target: 1,869 ~2.0bn EPS 1,678 ~10% 2019 2020 2021E 2023E 2019 2020 2021E 2023E Deutsche
Slide 13: Long standing capital management policy is confirmed
Long standing capital management policy is confirmed Rating Dividend policy Use of excess cash Capital allocation ▪ AA rating mainly because of ▪ Payout between 40% to 60% ▪ Preferably reinvested into the ▪ Permanent review and post-trading business of net profit (reported) business to support M&A m
Slide 14: Resilient and stable risk profile
Resilient and stable risk profile ▪ Deutsche Börse’s transaction-based business model is mainly characterised by operational risk DB1 risk ▪ Counterparty risk at Eurex Clearing is effectively managed through netting, profile is collateralisation and the clearing fund very distinct ▪ Counterparty ris
Slide 15: Key rating metrics
Key rating metrics Deutsche Börse AG FFO / net debt Net debt / EBITDA 2016 58% 2016 1.2 2017 59% 2017 1.1 2018 69% 2018 1.1 2019 79% 2019 1.0 2020 76% 2020 1.0 ≥ 50% ≤ 1.75 Deutsche Börse AG Clearstream Banking S.A. Interest cover Tangible equity (in €m) 2016 18 2016 1,179 2017 26 2017 1,214 2018 31
Slide 16: Maturity profile of Deutsche Börse Group long term debt
Maturity profile of Deutsche Börse Group long term debt DBAG EUR 600m EUR 500m EUR 600m EUR 600m 10 year 5 year NC 7 /27 10 year CBF Senior bond EUR 500m Senior bond Hybrid bond Senior bond 2.375% 10 year 0.000% 1.25% 1.125% Senior bond 600 1.625% 600 600 EUR 500m 10 year €m 500 500 Senior bond 500
Slide 17: Our clear ESG commitment is also underpinned by our strong ESG ratings
Our clear ESG commitment is also underpinned by our strong ESG ratings Deutsche Börse Group Deutsche Börse C-Prime Rating for Deutsche Börse Group Deutsche Börse Group with strong B-score on Group’s ESG rating is Deutsche Börse Group with company score of with a total score of 70 a scale from A-F wh
Slide 18: Deutsche Börse AG is a unique investment opportunity in a 'AA' rated corporate
Deutsche Börse AG is a unique investment opportunity in a ‘AA‘ rated corporate Leading international exchange organization and innovative market infrastructure provider Diversified, scalable and resilient business model Clear ESG commitment and continuous expansion of ESG capabilities along entire v
Slide 19: 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
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