Deutsche Boerse Ag · XETR:DB1
Deutsche Boerse — Deutsche Börse Group — Barclays European Select Conference 2018
22 slides from Deutsche Boerse's conference presentation, Jun 14, 2018
Slide 1: Barclays European Select Conference
Deutsche Börse Group 1 Barclays European Select Conference Gregor Pottmeyer, CFO Sonoma, 14 June 2018
Slide 2: Deutsche Börse equity story
Barclays European Select Conference 14 June 2018 Deutsche Börse Group 2 Deutsche Börse equity story ▪ Leading European capital markets infrastructure provider with global growth ambitions ▪ Nine business segments that cover the full capital markets value chain including: – Eurex, the largest Europea
Slide 3: Deutsche Börse operates in an environment with high dynamics, but very attractive opportunities
Barclays European Select Conference 14 June 2018 Deutsche Börse Group 3 Deutsche Börse operates in an environment with high dynamics, but very attractive opportunities Multiple strong secular Ongoing consolidation in growth opportunities the industry and high M&A (e.g. OTC to on-exchange, activity (
Slide 4: Deutsche Börse has a strong business portfolio that covers the full value chain
Barclays European Select Conference 14 June 2018 Deutsche Börse Group 4 Deutsche Börse has a strong business portfolio that covers the full value chain 2017 net revenue Size equals % of total net revenue Pre-trading Trading & clearing Post-trading 11% 36% 53% STOXX Data Eurex EEX 360T Xetra Clearstr
Slide 5: Growth programme “Roadmap 2020” built on three pillars
Barclays European Select Conference 14 June 2018 Deutsche Börse Group 5 Growth programme “Roadmap 2020” built on three pillars I II III Strong organic portfolio Programmatic M&A New technologies as foundation ▪ Strong organic secular net ▪ Programmatic investment ▪ Creation of growth revenue growth
Slide 6: Diversified organic portfolio with strong secular growth outlook
Barclays European Select Conference 14 June 2018 Deutsche Börse Group 6 Diversified organic portfolio with strong secular growth outlook Size represents 2017 700 Cyclical growth net revenue (€m) 70 CAGR 2017-2020 Very high Secular net revenue growth of at least 5% across the Group High Clear- stream
Slide 7: M&A was and will be an important contributor
Barclays European Select Conference 14 June 2018 Deutsche Börse Group 7 M&A was and will be an important contributor 2015 2016 2017 2018 Step-up from 50% Full acquisition and controlling stake to increase of stake in full ownership EEX ~CHF 650m ~USD 207m Share swaps for Full acquisition Full acquis
Slide 8: We will follow a focused and disciplined M&A approach
Barclays European Select Conference 14 June 2018 Deutsche Börse Group 8 We will follow a focused and disciplined M&A approach A disciplined M&A approach … … focused on five growth areas ▪ Systematic opportunity screening Pre-trading 1 Data ▪ Clear focus on defined areas General ▪ Partnership formats
Slide 9: We want to stay a leading technology provider by focusing on four key technologies
Barclays European Select Conference 14 June 2018 Deutsche Börse Group 9 We want to stay a leading technology provider by focusing on four key technologies … How Deutsche Börse will capitalise Create markets/ Increase Enhance Four transformational technology trends drive revenue efficiency client ser
Slide 10: … and are currently growing our capabilities in all four technologies
Barclays European Select Conference 14 June 2018 Deutsche Börse Group 10 … and are currently growing our capabilities in all four technologies Entering into phase II (from use cases to broader DLT / blockchain based application) Big data / Systematic monetisation of existing data across the Advanced
Slide 11: We will structurally improve our cost base to fund growth and technology investments
Barclays European Select Conference 14 June 2018 Deutsche Börse Group 11 We will structurally improve our cost base to fund our growth and technology investments through two mechanisms Allowed increase at given scalability: Allowed cost At 10 per cent net revenue growth operating cost can increase g
Slide 12: Key levers for structural cost savings split between staff and non-staff cost
Barclays European Select Conference 14 June 2018 Deutsche Börse Group 12 Key levers for structural cost savings split between staff and non- staff cost Cost distribution 2017 Savings targets Key levers to reduce cost base 100% = €1,197 million ▪ Management delayering Staff cost ▪ Process automation
Slide 13: Savings of €100 million will be invested into growth and new technologies
Barclays European Select Conference 14 June 2018 Deutsche Börse Group 13 Savings of €100 million will be invested into growth and new technologies Cost savings (€m) Cost to achieve (€m) Cumulative: 200 Non-staff Staff 100 70 Majority of 66 cost to be incurred in 33 130 2018 2019 2020 2021 €100 milli
Slide 14: Cost savings and one-time investments reinvested into growth and efficiency
Barclays European Select Conference 14 June 2018 Deutsche Börse Group 14 Cost savings and one-time investments for non-staff measures are reinvested into growth and efficiency Segment growth Cumulative cost savings directly Reinvestment invested into growth / new €200m Big data / analytics technolog
Slide 15: Deutsche Börse will strengthen its execution discipline through four main levers
Barclays European Select Conference 14 June 2018 Deutsche Börse Group 15 Deutsche Börse will strengthen its execution discipline through four main levers Description Consequent realisation ▪ Strong business segment heads established 1 of secular growth ▪ Business segment heads with full P&L responsi
Slide 16: Mid-term financial targets are confirmed and made more specific
Barclays European Select Conference 14 June 2018 Deutsche Börse Group 16 Mid-term financial targets are confirmed and made more specific with a clear ambition to achieve secular growth Growth aspirations until 2020 Capital management Organic/secular net revenue Dividend policy: ~40% to growth of >5%
Slide 17: Deutsche Börse will grow strongly over the next years
Barclays European Select Conference 14 June 2018 Deutsche Börse Group 17 Deutsche Börse will grow strongly over the next years Mid-term organic net revenue growth opportunities (€m) Secular Cyclical At least 5% opportunities opportunities secular growth plus cyclical ~500 ~300 growth 100-150 250-350
Slide 18: Secular and cyclical growth opportunities across segments
Barclays European Select Conference 14 June 2018 Deutsche Börse Group 18 Secular and cyclical growth opportunities across segments Growth expectation CAGR 2017-20 (incl. cyclical Business segments Net revenue 2017 (€m) growth) t/o secular growth STOXX (index business) 128 >10% Very high Pre- trading
Slide 19: Cyclical growth opportunities
Barclays European Select Conference 14 June 2018 Deutsche Börse Group 19 Cyclical growth opportunities Description Volatility Interest Net revenue rates impact 2020E (€m) a Increase of market volatility resulting 50-100 in higher index derivatives activity Eurex b Expectation on future interest rate
Slide 20: Balanced approach: capital allocation between growth and dividend distribution
Barclays European Select Conference 14 June 2018 Deutsche Börse Group 20 Balanced approach: capital allocation between growth and dividend distribution – confirmation of policy going forward ▪ Strong AA credit rating mainly because of post-trading business Rating ▪ Gross debt to EBITDA required to b
Slide 21: Key performance indicators to measure success
Barclays European Select Conference 14 June 2018 Deutsche Börse Group 21 Key performance indicators to measure success Deutsche Börse will achieve at minimum 5% CAGR in secular net revenue until 2020 across the Group >5% secular net revenue growth 10- Deutsche Börse will achieve 15% a 10–15% CAGR in
Slide 22: Disclaimer
Deutsche Börse Group 22 Barclays European Select Conference 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 eve
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