Deutsche Boerse Ag · XETR:DB1

Deutsche Boerse — Deutsche Börse Group — Investor Day (June 2014)

99 slides from Deutsche Boerse's investor day presentation, Jun 3, 2014

  1. Slide 1: Investor Day 2014 London

    Investor Day 2014 London 3 June 2014

  2. Slide 2: Agenda

    Investor Day 3 June 2014 Deutsche Börse Group 1 Agenda 10.00 Group Strategy/ Financials  Reto Francioni, CEO  Gregor Pottmeyer, CFO Xetra/ Eurex – Cash & Derivatives Markets  Andreas Preuss, Deputy CEO Q&A session 12.00 Lunch break 13.00 Clearstream – Post-trade  Jeffrey Tessler, Member of the E

  3. Slide 3: Agenda

    Investor Day 3 June 2014 Deutsche Börse Group 2 Agenda Group Strategy/ Financials Xetra/ Eurex – Cash & Derivatives Markets Clearstream – Post-trade Market Data + Services

  4. Slide 4: Investment Highlights Deutsche Börse Group

    Investor Day > Group Strategy/ Financials 3 June 2014 Deutsche Börse Group 3 Investment Highlights Deutsche Börse Group  Uniquely positioned to benefit from customer focus on risk, collateral and liquidity management; business model is serving as the global industry role model  Long-term growth st

  5. Slide 5: Deutsche Börse Has Delivered Attractive Returns And Maintained Stability

    Investor Day > Group Strategy/ Financials 3 June 2014 Deutsche Börse Group 4 Deutsche Börse Has Delivered Attractive Returns And Maintained Stability Through Challenging Market Environment €bn 2001: IPO of 2007: Acquisition 2011: Majority 2012: Full ISIN: DE0005810055 Deutsche Börse of ISE stake in

  6. Slide 6: Deutsche Börse Group Transformed Into A Diversified Full Service Market Infrastructure Provider

    Investor Day > Group Strategy/ Financials 3 June 2014 Deutsche Börse Group 5 Deutsche Börse Group Transformed Into A Diversified Full Service Market Infrastructure Provider Segmental revenue breakdown Share of non-transaction related revenue 8% CAGR €0.8bn €1.9bn Transaction- 50% related 35% 39% Eur

  7. Slide 7: Strong Position In Each Reporting Segment With Increasing Focus On Cross-Divisional Themes

    Investor Day > Group Strategy/ Financials 3 June 2014 Deutsche Börse Group 6 Strong Position In Each Reporting Segment With Increasing Focus On Cross-Divisional Themes Eurex Clearstream  #1 derivatives market in Europe  Leading global post-trade provider with  #3 derivatives market world-wide int

  8. Slide 8: Strong Position In The Global Exchange Sector Paired With Long-Standing Track Record For Dividend Distributions

    Investor Day > Group Strategy/ Financials 3 June 2014 Deutsche Börse Group 7 Strong Position In The Global Exchange Sector Paired With Long- Standing Track Record For Dividend Distributions Net revenue/ income 2013 Dividend yield Market capitalization €bn1 %2 €bn3 CME 2.3 CME 5.1 CME 17.7 0.8 DB1 1.

  9. Slide 9: Business Model Of Deutsche Börse Group Is Serving As The Global Role Model

    Investor Day > Group Strategy/ Financials 3 June 2014 Deutsche Börse Group 8 Business Model Of Deutsche Börse Group Is Serving As The Global Role Model Cash market Eurex/ Xetra Derivatives market Clearing Settlement Clearstream Custody Collateral management Market data Market Data + Services Indices

  10. Slide 10: Opportunities From Regulatory Framework Are More Concrete And Outweigh Challenges

    Investor Day > Group Strategy/ Financials 3 June 2014 Deutsche Börse Group 9 Opportunities From Regulatory Framework Are More Concrete And Outweigh Challenges Description Status Impact Timing EMIR Implementation of G20 rules to EMIR entered into force in Aug 2012 and ESMA technical European Market s

  11. Slide 11: Changing Regulation Drives Client Needs For Market Infrastructures

    Investor Day > Group Strategy/ Financials 3 June 2014 Deutsche Börse Group 10 Changing Regulation Drives Client Needs For Market Infrastructures Changing Deutsche Börse Group Client needs Client benefits regulation product/ service offering Deutsche Börse Liquidity offering addresses:  Basel III/ C

  12. Slide 12: Focus On Asia Driven By Increasing Importance Of The Region

    Investor Day > Group Strategy/ Financials 3 June 2014 Deutsche Börse Group 11 Focus On Asia Driven By Increasing Importance Of The Region In The Global Financial Market Context Equity market capitalization Share trading value Current initiatives $tr1 $tr1  Derivatives clearing 47% house in Singapor

  13. Slide 13: Our Strategy Is Focused On Becoming The Preeminent Global Provider For Integrated Risk, Collateral And Liquidity Management

    Investor Day > Group Strategy/ Financials 3 June 2014 Deutsche Börse Group 12 Our Strategy Is Focused On Becoming The Preeminent Global Provider For Integrated Risk, Collateral And Liquidity Management Internationality Success factors Integrated risk, collateral and liquidity management  Leading de

  14. Slide 14: Management Is Firmly Focused On Growing The Business, Effective Cost Management, And Attractive Capital Management

    Investor Day > Group Strategy/ Financials 3 June 2014 Deutsche Börse Group 13 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

  15. Slide 15: Growth – Substantial Incremental Revenue From Structural And Cyclical Drivers Expected

    Investor Day > Group Strategy/ Financials 3 June 2014 Deutsche Börse Group 14 Growth – Substantial Incremental Revenue From Structural And Cyclical Drivers Expected Illustration of mid- to long-term net revenue opportunities 1 2 3 €m Product Structural opportunities Cyclical opportunities innovation

  16. Slide 16: Growth – Track Record For Product Innovation Underscores Confidence In €50 Million Target

    Investor Day > Group Strategy/ Financials 3 June 2014 Deutsche Börse Group 15 1 Growth – Track Record For Product Innovation Underscores Confidence In €50 Million Net Revenue Target For 2017 Track record: €38m p.a. with new Eurex products Target: incremental €50m net revenue by 2017 €m €m 50 Example

  17. Slide 17: Growth – Initiatives To Benefit From Structural Growth Are On Track

    Investor Day > Group Strategy/ Financials 3 June 2014 Deutsche Börse Group 16 2 Growth – Initiatives To Benefit From Structural Growth Are On Track To Achieve Additional €300-375 Million Net Revenue By 2017 Net revenue Description Milestones achieved Timing (illustrative) target 2017 (€m)  Clearing

  18. Slide 18: Growth – Asian Growth Initiatives Are Based On Successful Expansion Of Business

    Investor Day > Group Strategy/ Financials 3 June 2014 Deutsche Börse Group 17 2 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 i

  19. Slide 19: Growth – Net Revenue Decline Since Record Year 2008 Mainly Driven By Cyclical Developments

    Investor Day > Group Strategy/ Financials 3 June 2014 Deutsche Börse Group 18 3 Growth – Net Revenue Decline Since Record Year 2008 Mainly Driven By Cyclical Developments Net revenue development since record year 2008 €bn 2.5 Net revenue Selected cyclical factors that influenced the net gap: ~€600m

  20. Slide 20: Growth – Important Cyclical Drivers Remained Depressed In 2013

    Investor Day > Group Strategy/ Financials 3 June 2014 Deutsche Börse Group 19 3 Growth – Important Cyclical Drivers For Deutsche Börse Group’s Businesses Remained Depressed In 2013 Eurex – Interest rate volatility1 Eurex – Equity market volatility2 2007 2008 2009 2010 2011 2012 2013 2007 2008 2009 2

  21. Slide 21: Growth – Partnerships And Complementary M&A Are Part Of Strategy Implementation

    Investor Day > Group Strategy/ Financials 3 June 2014 Deutsche Börse Group 20 Growth – Partnerships And Complementary M&A Are Part Of Strategy Implementation To Further Enhance Growth Trajectory 2010 2011 2012 2013 2014 STOXX: index business (majority stake) REGIS-TR: trade repository (JV with Iberc

  22. Slide 22: Operating Efficiency – Effective Cost Management Created Flexibility To Increase Investments

    Investor Day > Group Strategy/ Financials 3 June 2014 Deutsche Börse Group 21 Operating Efficiency – Effective Cost Management Over The Years Created Flexibility To Increase Investments In Growth Track record for effective cost management Cost growth of key exchange organizations Operating costs1, €

  23. Slide 23: Operating Efficiency – Efficiency Measures Introduced In 2013 Fully On Track

    Investor Day > Group Strategy/ Financials 3 June 2014 Deutsche Börse Group 22 Operating Efficiency – Efficiency Measures Introduced In 2013 Fully On Track Efficiency measures initiated in 2013 Ramp-up of cost savings  Planned savings in personnel and non-personnel 100% costs of €70 million per annu

  24. Slide 24: Capital Management – Refinancing Led To Significant Reduction Of Interest Expenses

    Investor Day > Group Strategy/ Financials 3 June 2014 Deutsche Börse Group 23 Capital Management – Refinancing Led To Significant Reduction Of Interest Expenses Overview refinancing Debt financing costs (part of financial expenses) €m First tranche (Oct 2012) -29  Terms of first tranche: €600 milli

  25. Slide 25: Capital Management – Strong Cash Flow Generation Allows For Strong Rating Profile And Attractive Distribution Policy

    Investor Day > Group Strategy/ Financials 3 June 2014 Deutsche Börse Group 24 Capital Management – Strong Cash Flow Generation Allows For Strong Rating Profile And Attractive Distribution Policy Capital Management Policy Attractive dividend distribution  Continuing past practice, Deutsche Börse dis

  26. Slide 26: Capital Management – Credit Rating Metrics And Banking Regulatory Capital Requirements

    Investor Day > Group Strategy/ Financials 3 June 2014 Deutsche Börse Group 25 Capital Management – Credit Rating Metrics And Banking Regulatory Capital Requirements Credit rating metrics Regulatory capital requirements Minimum Actuals Minimum Actuals requirement 31 Dec 2013 requirement 31 Dec 2013 D

  27. Slide 27: Capital Management – Capital Requirements Are Largely Driven By Operational Risks

    Investor Day > Group Strategy/ Financials 3 June 2014 Deutsche Börse Group 26 Capital Management – Capital Requirements Are Largely Driven By Operational Risks Eurex Clearing AG (regulatory requirements) Clearstream Holding group (regulatory requirements) 31 Dec 2013; €79 million 31 Dec 2013; €339 m

  28. Slide 28: Risk Management – Risk Profile Dominated By Operational Risk

    Investor Day > Group Strategy/ Financials 3 June 2014 Deutsche Börse Group 27 Risk Management – In Contrast To Banks, Deutsche Börse Group’s Risk Profile Is Dominated By Operational Risk Risk profile of a global bank1 vs. Deutsche Börse Regulatory capital requirements Global bank Deutsche Börse Grou

  29. Slide 29: Risk Management – Strong Mitigation Frameworks For Operational Risks Are In Place

    Investor Day > Group Strategy/ Financials 3 June 2014 Deutsche Börse Group 28 Risk Management – Strong Mitigation Frameworks For Operational Risks Are In Place Systems and IT Operational risk framework Compliance  Integrated IT function and  Clearstream uses the Basel  Move to dedicated Group ext

  30. Slide 30: Risk Management – Counterparty Risk In The Clearing House Effectively Managed

    Investor Day > Group Strategy/ Financials 3 June 2014 Deutsche Börse Group 29 Risk Management – Counterparty Risk In The Clearing House Effectively Managed By Collateralization And Lines Of Defense Lines of defense of clearing house Risk management position in 2013 €bn 1. Liquidation of open positio

  31. Slide 31: Risk Management – Risk Management Essentials Promote Strong Risk Culture

    Investor Day > Group Strategy/ Financials 3 June 2014 Deutsche Börse Group 30 Risk Management – Risk Management Essentials Promote Strong Risk Culture Across The Group Risk management essentials We support Deutsche Börse Group’s mission by 1 providing superb risk management services to our customers

  32. Slide 32: Risk Management – Summary

    Investor Day > Group Strategy/ Financials 3 June 2014 Deutsche Börse Group 31 Risk Management – Summary  The Group’s risk profile is mainly characterized by operational Extensive track record risks; its transaction based business model is very distinct from for system reliability the business model

  33. Slide 33: Agenda

    Investor Day 3 June 2014 Deutsche Börse Group 32 Agenda Group Strategy/ Financials Xetra/ Eurex – Cash & Derivatives Markets Clearstream – Post-trade Market Data + Services

  34. Slide 34: Cash & Derivatives Markets – Comprehensive Offering In Trading & Clearing Services

    Investor Day > Cash & Derivatives Markets 3 June 2014 Deutsche Börse Group 33 Cash & Derivatives Markets – Comprehensive Offering In Trading & Clearing Services 1 2 3 4 5 Trading Products  Equities  Equity Index Derivatives  Euro Repo  Energy spot  US equity,  ETFs/ ETNs  Equity Derivatives 

  35. Slide 35: Cash & Derivatives Markets – Key Figures

    Investor Day > Cash & Derivatives Markets 3 June 2014 Deutsche Börse Group 34 Cash & Derivatives Markets – Key Figures Order Book Turnover: €98 billion1,2 Trading value: €7,651 billion2 Trading „Fourth largest cash market in Europe“ „Third largest derivatives market in the world“ Number tradable/ li

  36. Slide 36: Cash Market – Net Revenue Recovering In 2013 And Q1/2014

    Investor Day > Cash & Derivatives Markets 3 June 2014 Deutsche Börse Group 35 1 Cash Market – Net Revenue Recovering In 2013 And Q1/2014 Development of net revenue and EBIT Breakdown of net revenue by product €m Q1/14; €44 million Net revenue1 442 EBIT2 Non-transaction based3 352 18% 317 Bonds/Funds

  37. Slide 37: Cash Market – Trades And Turnover Drive Revenue

    Investor Day > Cash & Derivatives Markets 3 June 2014 Deutsche Börse Group 36 1 Cash Market – Trades And Turnover Drive Revenue; 76 Percent Of Turnover Generated Outside Germany Development of Cash Market volumes Total turnover by member country Number of Xetra trades (m) Q1/14; €633 billion1 (month

  38. Slide 38: Cash Market – Strong Position In German Blue Chips

    Investor Day > Cash & Derivatives Markets 3 June 2014 Deutsche Börse Group 37 1 Cash Market – Strong Position In German Blue Chips; Migration Of OTC Order Flow Yields Growth Potential Market share development German blue chips Description and outlook 1) DAX on Xetra and other pan-European 2) DAX on

  39. Slide 39: Derivatives Market – Development Of Net Revenue And EBIT

    Investor Day > Cash & Derivatives Markets 3 June 2014 Deutsche Börse Group 38 2 Derivatives Market – Development Of Net Revenue And EBIT Development of net revenue and EBIT Breakdown of net revenue by product €m 975 Net revenue1 Q1/14; €207 million EBIT2 845 Other3 778 787 768 763 Repo 9% 741 656 5%

  40. Slide 40: Derivatives Market – Number Of Contracts Traded Drives Revenue

    Investor Day > Cash & Derivatives Markets 3 June 2014 Deutsche Börse Group 39 2 Derivatives Market – Number Of Contracts Traded Drives Revenue; 92 Percent Of Volume Generated Outside Germany Development of derivatives market volumes Eurex volume by member country Number of Eurex trades1 (m) Q1/14; 7

  41. Slide 41: Derivatives Market – Resistant To Difficult Market Conditions

    Investor Day > Cash & Derivatives Markets 3 June 2014 Deutsche Börse Group 40 2 Derivatives Market – Resistant To Difficult Market Conditions; Recovery Potential In European Rates And Index Derivatives European Interest Rate Derivatives European Index Derivatives European Equity Derivatives Daily tr

  42. Slide 42: Derivatives Market – Market Environment In Transformation Globally

    Investor Day > Cash & Derivatives Markets 3 June 2014 Deutsche Börse Group 41 2 Derivatives Market – Market Environment In Transformation Globally Changes in derivatives market environment  New regulatory framework expected to increase cost of trading – increasing capital requirements drive focus o

  43. Slide 43: Derivatives Market – Four Success Factors Drive Competitive Position

    Investor Day > Cash & Derivatives Markets 3 June 2014 Deutsche Börse Group 42 2 Derivatives Market – Business Model: Combination Of Four Success Factors Drives Competitive Position  Grow network – global distribution reach DISTRIBUTION D  Attract order flow to scale liquidity pools  Develop and m

  44. Slide 44: Infrastructure Migration In Plan – New Backbone For Market Operations

    Investor Day > Cash & Derivatives Markets 3 June 2014 Deutsche Börse Group 43 A Infrastructure Migration In Plan – New Backbone For Market Operations, Co-operations And Innovation T7  Derivatives market migration successfully completed in 2013 – Eurex markets running on new architecture, further bu

  45. Slide 45: Clearing – Integrated CCP Model Of Eurex Clearing Increases Efficiencies

    Investor Day > Cash & Derivatives Markets 3 June 2014 Deutsche Börse Group 44 B Clearing – Integrated CCP Model Of Eurex Clearing Increases Cost And Capital Efficiencies For Clients Integrated CCP model of Eurex Clearing Key cost and capital efficiency drivers1 Multilateral risk netting may be compl

  46. Slide 46: Cross-product Margining Is Key Driver For Efficiencies In Interest Rate Derivatives

    Investor Day > Cash & Derivatives Markets 3 June 2014 Deutsche Börse Group 45 B Cross-product Margining Is Key Driver For Efficiencies In Interest Rate Derivatives Additional future saving potential over baseline CCP1 Key Driver  Cross-product margining in EUR interest rate Up to Global/ derivative

  47. Slide 47: Product Innovation – New Products Increasingly Contribute To Top-line Development

    Investor Day > Cash & Derivatives Markets 3 June 2014 Deutsche Börse Group 46 C Product Innovation – New Products Increasingly Contribute To Top-line Development €m revenue contribution of new products Net Product innovations since 2008 €m1 Existing Asset Classes Existing assets classes  Index Deri

  48. Slide 48: Product Innovation – Positive Development In Existing And New Asset Classes

    Investor Day > Cash & Derivatives Markets 3 June 2014 Deutsche Börse Group 47 C Product Innovation – Positive Development In Existing And New Asset Classes Product innovation in existing asset classes Product innovation in new asset classes Traded contracts in m1 2.9 Traded contracts in m1 1.7 MSCI

  49. Slide 49: Product Innovation – Co-operation Products: Eurex KOSPI Product

    Investor Day > Cash & Derivatives Markets 3 June 2014 Deutsche Börse Group 48 C Product Innovation – Co-operation Products A Successful Format: Eurex KOSPI Product Developed Into Attractive Liquidity Pool Development of KOSPI 200 Options1 Key developments Traded contract volume (m) Notional value (€

  50. Slide 50: Product Innovation – Full Product Pipeline In 2014

    Investor Day > Cash & Derivatives Markets 3 June 2014 Deutsche Börse Group 49 C Product Innovation – Full Product Pipeline In 2014 February Index derivatives on four Vienna Stock Exchange (VSE) indices covering Austria, CEE and Russia, additional products on VSE indices, e.g. China, Poland or Turkey

  51. Slide 51: EurexOTC Clear – Significant Progress In Client Admission And Clearing Volumes

    Investor Day > Cash & Derivatives Markets 3 June 2014 Deutsche Börse Group 50 C EurexOTC Clear – Significant Progress In Client Admission And Clearing Volumes Admitted Clearing Members  33 admitted Clearing Members – including all major global dealers; more than 50 expected until end of 2014  Over

  52. Slide 52: EurexOTC Clear – Revenue Expectation For Interest Rate Swap Clearing

    Investor Day > Cash & Derivatives Markets 3 June 2014 Deutsche Börse Group 51 C EurexOTC Clear – Revenue Expectation For Interest Rate Swap Clearing Geographic distribution of IRS trading Net revenue expectation 2017 €726 trillion traded volume p.a. 1 Market share Others 25% Europe 10% D2C Net reven

  53. Slide 53: Asia – High Priority On Co-operations And Organic Expansion In 2014 And 2015

    Investor Day > Cash & Derivatives Markets 3 June 2014 Deutsche Börse Group 52 D Asia – High Priority On Co-operations And Organic Expansion In 2014 And 2015 Co-operations  Eurex / Taifex Link launched - Eurex’s members can access TAIEX index derivatives during European & US core trading hours, leve

  54. Slide 54: Eurex Repo – Continuous Net Revenue Growth

    Investor Day > Cash & Derivatives Markets 3 June 2014 Deutsche Börse Group 53 3 Eurex Repo – Continuous Net Revenue Growth Development of net revenue Breakdown of net revenue by market €m1 Q1/14; €11 million Other currencies 35 16% 32 30 24 21 Euro Repo 23% 54% GC Pooling (Specials) 10 11 7% Euro Re

  55. Slide 55: Eurex Repo – Business Model Expanding

    Investor Day > Cash & Derivatives Markets 3 June 2014 Deutsche Börse Group 54 3 Eurex Repo – Business Model Expanding Key developments  GC Pooling Market: Multi-Currency Initiative: extension of international collateral baskets and cash-currencies e.g. CHF, DKK, GBP  GC Pooling Select: First Germa

  56. Slide 56: European Energy Exchange (EEX) – Majority Shareholding Consolidated

    Investor Day > Cash & Derivatives Markets 3 June 2014 Deutsche Börse Group 55 4 European Energy Exchange (EEX) – Majority Shareholding Consolidated; Revenue Growth Accelerating In 2013 & Q1/2014 Development of net revenue Breakdown of net revenue by product €m Q1/14; €16 million Other 54 21% 45 44 P

  57. Slide 57: European Energy Exchange (EEX) – Contributes New Asset Classes

    Investor Day > Cash & Derivatives Markets 3 June 2014 Deutsche Börse Group 56 4 European Energy Exchange (EEX) – Contributes New Asset Classes To Eurex Group, Growth Potential In Commodities Strategic objectives EEX strategically aims to expand both its product portfolio and geographical reach  Glo

  58. Slide 58: International Securities Exchange (ISE) – Stable Net Revenue

    Investor Day > Cash & Derivatives Markets 3 June 2014 Deutsche Börse Group 57 5 International Securities Exchange (ISE) – Stable Net Revenue In 2013 And Q1/2014 Development of net revenue Breakdown of net revenue by product €m Q1/14; €33 million ISE membership fees, market data, and other 169 33% 16

  59. Slide 59: International Securities Exchange (ISE) – Well Positioned In Highly Competitive Environment

    Investor Day > Cash & Derivatives Markets 3 June 2014 Deutsche Börse Group 58 5 International Securities Exchange (ISE) – Well Positioned In Highly Competitive Environment Key developments  The US options industry is more competitive than ever with 12 exchanges competing for order flow  Technology

  60. Slide 60: Cash & Derivatives Markets – Summary

    Investor Day > Cash & Derivatives Markets 3 June 2014 Deutsche Börse Group 59 Cash & Derivatives Markets – Summary Key messages Comprehensive offering in cash and derivatives markets – solid revenue development in 2014 to date Eurex core products resistant to difficult market conditions – recovery p

  61. Slide 61: Agenda

    Investor Day 3 June 2014 Deutsche Börse Group 60 Agenda Group Strategy/ Financials Xetra/ Eurex – Cash & Derivatives Markets Clearstream – Post-trade Market Data + Services

  62. Slide 62: Global Leadership Across The Value Chain – Post-Trade Excellence As A Differentiator

    Investor Day > Post-trade 3 June 2014 Deutsche Börse Group 61 Global Leadership Across The Value Chain – Post-Trade Excellence As A Differentiator Exchange Trading CCP Collateral Management ICSD/Banking Services CSD No Full Degree of service coverage Recent Developments

  63. Slide 63: Revenue Resilience And Strong Cost Discipline

    Investor Day > Post-trade 3 June 2014 Deutsche Börse Group 62 Revenue Resilience And Strong Cost Discipline Net revenue, cost and EBIT development Breakdown of net revenue by activity (€m) 878 NII GSF Custody €m Net revenue 844 Other Settlement IFS3 EBIT1 231 237 687 695 3 Operating costs 655 650 65

  64. Slide 64: Low Interest Rates Weigh On Net Interest Income Performance

    Investor Day > Post-trade 3 June 2014 Deutsche Börse Group 63 Low Interest Rates Weigh On Net Interest Income Performance Despite High Cash Balances Settlement transactions & cash balances Interest rates & net interest income Avg. cash balance (€bn) Net interest income (€m) Settlement transactions (

  65. Slide 65: A Solid Business Model Offering Secure And Attractive Services

    Investor Day > Post-trade 3 June 2014 Deutsche Börse Group 64 A Solid Business Model Offering Secure And Attractive Services Clearstream at a glance  The only global CSD positioned at the core of an exchange group alongside a clearing house Global Custodian Magazine:  Offering integrated post-trad

  66. Slide 66: Custody – Significant Inflow Of Assets Despite Increased Competition

    Investor Day > Post-trade 3 June 2014 Deutsche Börse Group 65 Custody – Significant Inflow Of Assets Despite Increased Competition Net revenue development Development of assets under custody €m1,2 Domestic International €tr3 Domestic International 335 344 336 331 338 84 84 11.1 11.1 11.6 11.4 12.0 1

  67. Slide 67: Settlement – Higher Volume Reflecting Growth In On-Exchange And OTC Transactions

    Investor Day > Post-trade 3 June 2014 Deutsche Börse Group 66 Settlement – Higher Volume Reflecting Growth In On-Exchange And OTC Transactions Net revenue development Development of settlement volumes €m1,2 Domestic International m3 Domestic International 105 111 33 10.5 10.1 11.1 102 104 101 9.7 9.

  68. Slide 68: Global Securities Financing (GSF) – Maintaining Leadership Through Innovation

    Investor Day > Post-trade 3 June 2014 Deutsche Börse Group 67 Global Securities Financing (GSF) – Maintaining Leadership Through Innovation Net revenue development Development of GSF volumes outstanding1 €m1 ASL+ Repo Xemac LMS €bn2 ASL+ Repo Xemac LMS 56 57 58 16 592 570 577 563 580 10 13 3 522 28

  69. Slide 69: Investment Fund Services (IFS) – Accelerating Rapid Growth

    Investor Day > Post-trade 3 June 2014 Deutsche Börse Group 68 Investment Fund Services (IFS) – Accelerating Rapid Growth Net revenue development Breakdown of net revenue by activity €m1 Q1/14; €22 million 81 Others 67 5% 9% Order Vestima® 52 Custody 33% 15% Connectivity 20 22 Settlement 38% 2011 201

  70. Slide 70: Leading Solutions Drive Customers To Clearstream

    Investor Day > Post-trade 3 June 2014 Deutsche Börse Group 69 Leading Solutions Drive Customers To Clearstream − Integrated Offering Retains Customers And Enable Sustainable Growth Access Integration Growth T2S strategy  Customer base Global Custody Collateral reach  Counterparties Securities Serv

  71. Slide 71: Clearstream’s Strategic Initiatives Must Fulfill Simple But Strict Investment Criteria

    Investor Day > Post-trade 3 June 2014 Deutsche Börse Group 70 Clearstream’s Strategic Initiatives Must Fulfill Simple But Strict Investment Criteria And Meet Growth Ambitions High-level strategy statement Clearstream investment criteria 1. T2S allows Clearstream to (1) expand its settlement liquidit

  72. Slide 72: TARGET2-Securities – A Unique Opportunity For Clearstream

    Investor Day > Post-trade 3 June 2014 Deutsche Börse Group 71 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 settlement

  73. Slide 73: TARGET2-Securities – Leading To Increased Liquidity And New Clients

    Investor Day > Post-trade 3 June 2014 Deutsche Börse Group 72 TARGET2-Securities – Leading To Increased Liquidity And New Clients For Clearstream Euroclear Clearstream T2S strategy and opportunities T2S relevant custody volumes1  Clearstream has the highest share of €tr €tr2 12.1 settlement volumes

  74. Slide 74: Most Sophisticated Collateral Management Approach With Differentiating Services

    Investor Day > Post-trade 3 June 2014 Deutsche Börse Group 73 Most Sophisticated Collateral Management Approach With Differentiating Services Clearstream Luxembourg Automated CCP & OTC Headquarters: International Trade Repository Liquidity / Collateral Manager Collateral (ICSD) Exposure Management C

  75. Slide 75: Client Feedback Is Validating Clearstream’s T2S – Collateral Management Strategy

    Investor Day > Post-trade 3 June 2014 Deutsche Börse Group 74 Client Feedback Is Validating Clearstream’s T2S – Collateral Management Strategy  Biggest beneficiaries of liquidity/ collateral savings made available with T2S in addition to reduced back office costs from harmonized settlement processe

  76. Slide 76: Investment Fund Services Offer A Central Meeting Place For Fund Investors And Issuers

    Investor Day > Post-trade 3 June 2014 Deutsche Börse Group 75 Investment Fund Services Offer A Central Meeting Place For Fund Investors And Issuers Integrated offering … … now expanded to hedge funds Private and Universal Investment Banks high Banks Global Custodians Hedge Hedge and Platforms Funds

  77. Slide 77: Expansion Into Hedge Funds Through Acquisition Of Complementary Citco Business

    Investor Day > Post-trade 3 June 2014 Deutsche Börse Group 76 Expansion Into Hedge Funds Through Acquisition Of Complementary Citco Business Citco FI clients Clearstream Citco Clearstream Banking Citco Bank Netherland IFS CGSS Acquisition of Citco’s operational infrastructure to service Hedge fund a

  78. Slide 78: Citco Transaction Extends Clearstream’s Fund Offering Significantly

    Investor Day > Post-trade 3 June 2014 Deutsche Börse Group 77 Clearstream – Citco Transaction Extends Clearstream‘s Fund Offering Significantly And Creates Leading Fund Infrastructure Existing fund business has grown rapidly … … Citco will add hedge funds capabilities €m1 Clearstream Citco 81 Mutual

  79. Slide 79: Steady Progress In Asia Strategy To Leverage Growth Opportunities

    Investor Day > Post-trade 3 June 2014 Deutsche Börse Group 78 Steady Progress In Asia Strategy To Leverage Growth Opportunities 07/2014: Collateral 12/2013: Funds 2013/2014: Staff ramp cooperation with KSD, up Singapore and 02/2014: Launch of RMB management go-live with Korea Hong Kong market approa

  80. Slide 80: Key Clearstream Messages

    Investor Day > Post-trade 3 June 2014 Deutsche Börse Group 79 Key Clearstream Messages Clearstream has a strong business model centered on 4 attractive and complementary 1 services: Settlement, Custody, Global Securities Financing and Investment Fund Services T2S acts as a catalyst to boost Clearstr

  81. Slide 81: Agenda

    Investor Day 3 June 2014 Deutsche Börse Group 80 Agenda Group Strategy/ Financials Xetra/ Eurex – Cash & Derivatives Markets Clearstream – Post-trade Market Data + Services

  82. Slide 82: Effective Deployment Of Data And Technology Has Become Key Value Driver

    Investor Day > Market Data + Services 3 June 2014 Deutsche Börse Group 81 Effective Deployment Of Data And Technology Has Become Key Value Driver For Market Participants Data deployed, e.g. ...  ... Data detecting new outperforming investment strategies  ... Data facilitating transparency on risk

  83. Slide 83: Market Data + Services Turns Data Into Value For Capital Market Players

    Investor Day > Market Data + Services 3 June 2014 Deutsche Börse Group 82 Market Data + Services (MD+S) Turns Data Into Value For Capital Market Players Corporation Action Processing Reference Data Management Pre-Trade/Trade Compliance Benchmarking Best Execution Management Footprint Indexing as a S

  84. Slide 84: Diversified MD+S Model Provides Attractive Investment Case

    Investor Day > Market Data + Services 3 June 2014 Deutsche Börse Group 83 Diversified MD+S Model Provides Attractive Investment Case External revenue Revenue contribution by customer base characteristics EBIT margin  Long tenure and low volatility of the Highly sticky, 1 53% 57% customer base in ma

  85. Slide 85: 2013 – New Segment Setup For Future Growth

    Investor Day > Market Data + Services 3 June 2014 Deutsche Börse Group 84 2013 – New Segment Setup For Future Growth Net revenue and EBIT development New segment genesis Net revenue (€m)1 Market data IT services  New segment assembled in H1/2013 from 395 399 371 366 Market Data area and over 20 dif

  86. Slide 86: 2014 – MD+S Geared Up To Deliver Aspired Organic Growth Rates Of 4%

    Investor Day > Market Data + Services 3 June 2014 Deutsche Börse Group 85 2014 – MD+S Geared Up To Deliver Aspired Organic Growth Rates Of 4% MD+S net revenue breakdown Current activities and customers €m I Information +5%  Products: Real-time / historical market data (e.g. Xetra, Eurex), 91.5 93.5

  87. Slide 87: MD+S On Track To Deliver Net Revenue Growth Of 4% Per Annum

    Investor Day > Market Data + Services 3 June 2014 Deutsche Börse Group 86 MD+S On Track To Deliver Net Revenue Growth Of 4% Per Annum As Forecasted Aspired net revenue growth 2013-2017 €m 2017 target 50-75  Roll out insourcing of other exchanges’ international data businesses  Expand analytics off

  88. Slide 88: Information: Stable Core – Growth In Non-Deutsche Börse Info

    Investor Day > Market Data + Services 3 June 2014 Deutsche Börse Group 87 I Information: Stable Core – Growth In Non-Deutsche Börse Info Data subscriptions vs. trading volume Market data spend forecast No. of data subscriptions Eurex contracts traded Share of data users planning to increase spend in

  89. Slide 89: Information: Growth Focus 2014-2017

    Investor Day > Market Data + Services 3 June 2014 Deutsche Börse Group 88 I Information: Growth Focus 2014 - 2017 Example: Real-time analytics  Deeper insight in trading markets through trade related, Individual order related and index related metrics analytics  1st releases for Xetra with 701 key

  90. Slide 90: Index: Sustainable Growth In Assets Under Management

    Investor Day > Market Data + Services 3 June 2014 Deutsche Börse Group 89 II Index: Sustainable Growth In Assets Under Management – Additional Opportunity In Non-EU Indices ETFs using STOXX/ DAX as underlying Total assets allocated into ETFs by region Assets under management; €bn1 Assets under manag

  91. Slide 91: Index: Growth Focus 2014-2017

    Investor Day > Market Data + Services 3 June 2014 Deutsche Börse Group 90 II Index: Growth Focus 2014 - 2017 Example: strategy index innovation Index  Growth until 2013 driven by globalization globalization  Expansion of portfolio into Strategy Overlays (Smart Beta and indices) in 2012 and 2013 in

  92. Slide 92: Tools: Connectivity Saturated – Opportunity In Software Tools

    Investor Day > Market Data + Services 3 June 2014 Deutsche Börse Group 91 III Tools: Connectivity Saturated – Opportunity In Software Tools Customer bandwidth usage Market for software as a service in finance1 [in Tbps]  Trend to Software-as-a-Service (SaaS) within the Peak is due to Eurex T7 finan

  93. Slide 93: Tools: Growth Focus 2014-2017

    Investor Day > Market Data + Services 3 June 2014 Deutsche Börse Group 92 III Tools: Growth Focus 2014 - 2017 Example: Impendium Systems Deutsche Börse acquired 100% of Impendium effective 1 February 2014 (e.g. markets, regulations) Impendium automates regulatory reporting for capital market partici

  94. Slide 94: Market Solutions: Growing Client Base/ Upside Through Upselling

    Investor Day > Market Data + Services 3 June 2014 Deutsche Börse Group 93 IV Market Solutions: Growing Client Base/ Upside Through Upselling Market Solutions Service coverage Number of market places1 Number of market places per service1 Average contract duration > 5 years Index calculation 1 Average

  95. Slide 95: Market Solutions: Growth Focus 2014-2017

    Investor Day > Market Data + Services 3 June 2014 Deutsche Börse Group 94 IV Market Solutions: Growth Focus 2014 - 2017 Example: commodities market Deutsche Börse to support the launch of the first Commodity markets Norwegian wood and paper commodities exchange with its M7 multi market technology Ta

  96. Slide 96: MD+S Contributes To Deutsche Börse Group’s Asia Strategy

    Investor Day > Market Data + Services 3 June 2014 Deutsche Börse Group 95 MD+S Contributes To Deutsche Börse Group’s Asia Strategy Signed new licenses Several licenses signed with Asian ETF issuers in China, with Asian ETF Korea and Japan to launch products based on STOXX issuers indices No. of vend

  97. Slide 97: Market Data & Services – Summary

    Investor Day > Market Data + Services 3 June 2014 Deutsche Börse Group 96 Market Data & Services – Summary Key messages Effective deployment of data and corresponding technology has become a key value driver for capital market participants MD+S turns data into value for a wide array of capital marke

  98. Slide 98: Financial Calendar And Contact Details

    Investor Day 3 June 2014 Deutsche Börse Group 97 Financial Calendar And Contact Details Financial calendar Contact details 24 Jul 2014 Interim report Q2/2014 Deutsche Börse AG 25 Jul 2014 Conference call Q2/2014 Investor Relations 27 Oct 2014 Interim report Q3/2014 Mergenthalerallee 61 28 Oct 2014 C

  99. Slide 99: Disclaimer

    Investor Day 2014 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

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