Dws Group Gmbh & Co. Kgaa · XETR:DWS
Dws Group Gmbh & Co. Kgaa — Q4 2024 Earnings Presentation
24 slides from Dws Group Gmbh & Co. Kgaa's earnings presentation, Jan 30, 2025
Slide 1: DWS Group Q4 & FY 2024 preliminary results
DWS Group Q4 & FY 2024 preliminary results January 30, 2025
Slide 2: FY 2024 key financial highlights
FY 2024 key financial highlights Significant improvement in FY 2024 financials Assets under Management above €1tn, a record high level Continued strong long-term net inflows of €33bn, doubled versus FY 2023 Improved adjusted profit before tax to over €1bn, up 10% y-o-y Adjusted cost-income-ratio at
Slide 3: Financial performance snapshot – Q4 2024
Financial performance snapshot – Q4 2024 Improved adjusted profit before tax resulting from strong revenue growth AuM (€bn) Revenues (€mn) Total Long-term Total management 1.0 16.7 14.4 26.0 26.2 25.9 net flows (€bn) fee margin (bps) +13% +5% +11% +7% 896 963 1,012 659 657 685 685 731 731 Q4-23 Q3-2
Slide 4: Financial performance snapshot – FY 2024
Financial performance snapshot – FY 2024 Strong AuM growth supported 10% adjusted profit before tax increase AuM (€bn) Revenues (€mn) Total Long-term Total management (11.7) 16.5 32.9 28.1 27.1 26.1 net flows (€bn) fee margin (bps) CAGR +11% +13% CAGR +1% +6% 896 1,012 2,683 2,712 2,603 2,614 2,747
Slide 5: Market environment
Market environment Markets benefited from AI-related optimism, U.S. election and shift in monetary policy Equities (%) FX (€/$) S-Dax Dax MSCI World Euro Stoxx 50 01/24 04/24 07/24 10/24 01/25 01/24 04/24 07/24 10/24 01/25 Volatility (VIX Index) Interest rates, yield (%) 10Y Bund 10Y Treasury Barcla
Slide 6: Total AuM development
Total AuM development AuM above €1 trillion driven by strong inflows and FX movement in Q4 AuM development 2022 - 2024 Q4 / FY Highlights 30 0 0 1,012 64 0 963 14 4 896 19 — Total AuM increased to over 821 (11) (5) Passive 335 €1tn, a record high level 307 246 199 — In Q4 AuM development was Alterna
Slide 7: AuM and net flows by asset class & region
AuM and net flows by asset class & region Turnaround in Alternatives and another record quarter of Passive net flows Total net flows breakdown, €bn Q4 / FY Highlights Q4-23 Q3-24 Q4-24 FY 2023 FY 2024 Active Equity (0.5) (1.6) (1.1) (2.3) (5.5) Active Multi Asset (1.1) (1.0) 0.1 (1.7) (1.9) — Long-t
Slide 8: Product overview
Product overview Double digit increase in funds greater than €1bn Number of funds above €1bn AuM1 Q4 2024 Product update Alternatives Active Passive Launch of DB Fixed Income Horizon 2027 Active +29% Launch of Xtrackers Green Transition Innovators UCITS ETF 142 Active ETF series 110 19 Launch of Xtr
Slide 9: Revenue development
Revenue development Strong management fee growth supported by AuM increase Adjusted revenues (in €mn) Q4 / FY Highlights Reported 657 685 731 2,614 2,765 revenues +11% +7% +6% — Q4 total adjusted revenues increased to €731mn, up 7% q-o-q 2,747 659 685 731 2,603 108 159 148 121 46 128 — Management fe
Slide 10: Management fee and margin development
Management fee and margin development Management fee development driven by strong flow levels and supportive markets Management fees1 and margin2 by asset class FY Highlights Passive — Management fees increased y-o-y 7 Alternatives across all Active asset classes and FY 2023 376 538 223 716 218 202
Slide 11: Other revenues
Other revenues Fair Value of Guarantees significantly impacted other revenues development in Q4 Other revenues 2024 Q4 / FY Highlights Total other NII Harvest FVoG Miscellaneous revenues — Other revenues stood at €(24)mn in Q4, being impacted by FVoG and one-off items Q1 38 14 (24) 16 44 — FVoG show
Slide 12: Harvest Fund Management
Harvest Fund Management Harvest grew to the fourth largest Mutual Fund Manager in China AuM development Revenue contribution to DWS Q4 / FY Highlights 214 190 196 — Revenue contribution of €7mn in Q4 and €49mn in FY 2024 69 — Harvest elevated its position amongst 150 56 largest Asset Mangers in Chin
Slide 13: Cost development
Cost development Adjusted cost-income-ratio at at 62.3%, being at the lower end of guided range of 62-64% Adjusted costs1 Q4 / FY Highlights Adjusted CIR (%) 65.7 61.7 60.0 64.0 62.3 — Reported costs decreased to Reported CIR (%) 74.4 64.3 63.8 70.3 65.4 €1,808mn, down 2% y-o-y thanks to lower cost
Slide 14: Financial Outlook 2025
Financial Outlook 2025 Reiterating €4.50 EPS and <59% adjusted CIR target Bridge to Financial Targets 2025 Reported revenues expected to be higher versus 2024 ― Management fees expected to benefit from higher average AuM and improved outlook for Alternatives Reported EPS €4.50 ― Performance and Tran
Slide 15: Medium-term financial targets
Medium-term financial targets Focus remains on EPS growth and shareholder return Reported EPS growth of 10% p.a. in 2026 and 2027 Revenue Growth: – Increase in management fees expected – Cumulative ~€150bn long-term net flows from 2025 to 2027 driven by growth areas in Xtrackers and Alternatives – M
Slide 16: Appendix
Appendix
Slide 17: Reconciliation of Flows and AUM – FY 2024
Reconciliation of Flows and AUM – FY 2024 FY 2024 Net Flows and AUM before and after separation of Advisory Services FY 2024 Net flows, in €bn FY 2024 Assets under Management, in €bn Net flows Net flows AuM AuM (before separation (after separation of Delta (before separation (after separation of Del
Slide 18: Reconciliation of Margins – FY 2024
Reconciliation of Margins – FY 2024 Management Fee Margins before and after separation of Advisory Services Including Separated FY 2024 Management Fee Margins in bps Delta Advisory Services Advisory Services Active Equity 68 71 2.7 Active Multi Asset 31 39 7.9 Active SQI1 33 33 - Active Fixed Income
Slide 19: DWS financial performance
DWS financial performance Q4 2024 Q4 2024 FY 2024 Q4 2024 Q3 2024 Q4 2023 FY 2024 FY 2023 In €mn, unless stated otherwise vs Q3 2024 vs Q4 2023 vs FY 2023 Management fees and other recurring revenues 647 626 572 2,479 2,315 3% 13% 7% Performance and transaction fees 108 12 41 148 128 775% 164% 16% O
Slide 20: Historical net flows and AuM development
Historical net flows and AuM development In €bn FY 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 FY 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 Net flows by asset class (after separation of Advisory Services) AuM (after
Slide 21: Q4 2024 detailed investment outperformance
Q4 2024 detailed investment outperformance Investment performance, in %1 Active Retail Active Institutional Active Total Alternatives Total DWS 62% 67% 69% 1 Aggregate asset-weighted gross outperformance of Active and Alternatives products that have benchmark spreads (gross and net) available over r
Slide 22: Investor relations
Investor relations Contact details Oliver Flade Maneli Farsi maneli.farsi@dws.com oliver.flade@dws.com investor.relations@dws.com investor.relations@dws.com Tel: + 49 (69) 910 41049 Tel: +49 (69) 910 63072 Agatha Klimek agatha-dominika.klimek@dws.com investor.relations@dws.com Tel: +49 (69) 910 4876
Slide 23: Cautionary statement (1/2)
Cautionary statement (1/2) This presentation contains forward-looking statements. Forward-looking statements are statements that are not historical facts; they include statements about our beliefs and expectations and the assumptions underlying them. These statements are based on plans, estimates an
Slide 24: Cautionary statement (2/2)
Cautionary statement (2/2) To measure outperformance, each fund or mandate of DWS which has a benchmark and where both gross and net outperformance is available has its performance (gross of fees) measured against that benchmark. In certain cases, for Illiquid portfolios where no benchmark is availa
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