Dws Group Gmbh & Co. Kgaa · XETR:DWS
Dws Group Gmbh & Co. Kgaa — Q3 2024 Earnings Presentation
20 slides from Dws Group Gmbh & Co. Kgaa's earnings presentation, Oct 23, 2024
Slide 1: DWS Group – Q3 2024 results
DWS Group – Q3 2024 results October 23, 2024
Slide 2: Q3 2024 key financial highlights
Q3 2024 key financial highlights Improved financial results underpinning path towards 2025 strategic targets Record levels for Assets under Management, Long-Term flows and Passive inflows Strong management fee improvement to €626mn, despite ongoing margin pressure Improved adjusted profit before tax
Slide 3: Financial performance snapshot – Q3 2024
Financial performance snapshot – Q3 2024 Improved adjusted profit before tax benefitting from better revenues and lower costs AuM (€bn) Adjusted revenues (€mn) Total Long-term 2.1 (6.0) 16.7 Total 27.2 26.4 26.2 net flows (€bn) management fee margin (bps) Adjusted costs (€mn) Adjusted profit before
Slide 4: Market environment
Market environment Markets stabilized following high volatility in August and benefited from recent rate cuts Equities (%) FX (€/$) Eurostoxx 50 Volatility (VIX Index) Interest rates, yield (%) 10Y Bund 10Y Treasury Barclays Global Aggregate 30Y Euro Swap Source: Bloomberg Investor Relations – DWS G
Slide 5: Total AuM development
Total AuM development AuM levels at record high resulting from strong net flows and supportive market environment AuM development Q3 2023 – Q3 2024 Q3 Highlights — Total AuM increased to €963bn, at record high level — Positive market impact of €26bn and strong flow development of €18bn are more than
Slide 6: AuM and net flows by asset class & region
AuM and net flows by asset class & region Strong inflows driven by highest quarterly long-term flows Total net flows breakdown, €bn Q3 Highlights Q3-23 Q2-24 Q3-24 Active Equity (1.5) (0.9) (1.6) — Record quarter for long-term flows of Active Multi Asset (0.9) (0.5) (1.0) €16.7bn; total flows improv
Slide 7: Product overview
Product overview Double digit increase in funds greater than €1bn Number of funds above €1bn AuM1 Q3 2024 Product update Launch of Target Maturity series, CSI 500 Swap UCITS ETF and Passive Artificial Intelligence & Big Data ETF +20.3% 138 Launch of DWS Invest Global Growth Leaders and DWS Concept A
Slide 8: Revenue development
Revenue development Management fee development driven by higher average AuM Adjusted revenues Q3 Highlights Total management fee margin (bps) 27.2 26.4 26.2 LT management fee — Total adjusted revenues at margin (bps) 30.3 29.2 28.8 €685mn, being up €7mn q-o-q End of period 860 933 963 — Second highe
Slide 9: Cost development
Cost development Specifying FY 2024 adjusted CIR outlook to lower end of guided range between 62-64% Adjusted costs1 Q3 Highlights Adjusted CIR (%) 63.1 63.2 61.7 — Total adjusted costs of €423mn decreased by 5mn q-o-q thanks to strict cost discipline — Compensation costs down by 2% q-o-q, benefitti
Slide 10: Deep-dive: Cost management
Deep-dive: Cost management Majority of our cost base are discipline-based costs ~5% Audit & Accounting Regulatory and taxes on intra-group services ~20% Asset Servicing Share-price based compensation Custody fees Performance based compensation Index provider fees ~75% Workforce related Offices and l
Slide 11: Deep-dive: Cost management
Deep-dive: Cost management Proactive steering of discipline-based costs Discipline-based costs Human capital management Non-compensation items Change and growth projects — Reallocate resources from sub-scale — Reduce external vendor spend via internalization — Transformation focus on differentiating
Slide 12: Deep-dive: Cost management
Deep-dive: Cost management Impact on cost components Adjusted Compensation Adjusted General Cost steering measures & Benefits & Administrative Cost adjustments Efficient location management Limited hires in hubs Neutral Neutral Higher fix Reduce external Internalization Neutral remuneration vendor s
Slide 13: Path to Financial Targets 2025
Path to Reported Targets Upside 2023 2025 Potential Financial Adjusted CIR 64.0% Below 59% Improved adj. CIR guidance for 2024 Targets 2025 Earnings per share €2.76 €4.50 Higher EPS in 2024 vs 2023 expected +€450 – PbT increased 14% in 9M 2024 Profit before Tax €777mn €500mn vs 9M 2023 Reiterate gui
Slide 14: Appendix
Appendix
Slide 15: DWS financial performance
DWS financial performance Q3 2024 Q3 2024 9M 2024 vs Q3 2024 Q2 2024 Q3 2023 9M 2024 9M 2023 In €mn, unless stated otherwise vs Q2 2024 vs Q3 2023 9M 2023 Management fees and other recurring revenues 626 613 593 1,831 1,743 2% 6% 5% Performance and transaction fees 12 10 29 40 87 21% (58)% (54)% Oth
Slide 16: Historical net flows and AuM development
Historical net flows and AuM development FY 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Q1 2024 Q2 2024 Q3 2024 FY 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Q1 2024 Q2 2024 Q3 2024 Net flows by asset class (after separation of Advisory Services) AuM (after separation of Advisory Services) Active
Slide 17: Q3 2024 detailed investment outperformance
Q3 2024 detailed investment outperformance Investment performance, in %1 Active Retail Active Institutional Active Total Alternatives Total DWS 58% 65% 77% 1 Aggregate asset-weighted gross outperformance of Active and Alternatives products that have benchmark spreads (gross and net) available over r
Slide 18: 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 19: 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 20: 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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