Deutsche Boerse Ag · XETR:DB1
Deutsche Boerse — Deutsche Börse — Q2 2021 Earnings Presentation
26 slides from Deutsche Boerse's earnings presentation, Jul 28, 2021
Slide 1: Q2/2021 Financial results Analyst and Investor Conference Call
Q2/2021 Financial results Analyst and Investor Conference Call 28 July 2021
Slide 2: 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 | €bn ~4.3 ~10% CAGR CONTINUED Secular SECULAR GROWTH +5% growth 2.9 M&A ~10% +5% growth CAGR 1.7 Secular +7% growth INCREASED M&A M&A CONTRIBUTION +3% growth 2019 20
Slide 3: We have made good progress on our targets
We have made good progress on our targets Net revenue | €m EBITDA | €m Note +10% +8% H1/2021 net revenue and EBITDA CAGR CAGR compared to 2019 (Compass 2023 (H1/21 vs. H1/19) (H1/21 vs. H1/19) base year) fully in-line with expected growth trajectory. Weaker cyclical net revenue Ø 1,468 Ø 1,607 Ø
Slide 4: Part of our strategy is to achieve an increasing share of recurring net revenue
Part of our strategy is to achieve an increasing share of recurring net revenue Share of recurring net revenue Note Recurring net revenue includes: fixed fees, asset based fees, subscription fees and licence fees. +3pp >55% ~53% Mainly driven by acquisitions ~50% (Axioma, Fund Centre and ISS), t
Slide 5: With the ISS acquisition we increased the share of ESG related net revenue significantly
With the ISS acquisition we increased the share of ESG related net revenue significantly ESG related net revenue | €m Note ESG related net revenue along the value chain includes contribution +67% from: Qontigo (ESG indices), ISS ~100 (ESG data, research and ratings; proxy voting), Eurex (ESG deriv
Slide 6: With the acquisition of Crypto Finance a further step in our M&A strategy has been achieved
With the acquisition of Crypto Finance a further step in our M&A strategy has been achieved Crypto Finance is an independent financial group under FINMA supervision, offering institutional clients brokerage, storage and asset management services in digital assets. It was identified as ideal partner
Slide 7: Additional opportunity for value creation through our growing portfolio of minority investments
Additional opportunity for value creation through our growing portfolio of minority investments Selected minority investments Minority investment portfolio includes a ~15% ~15% broad range of attractive businesses along AI-powered tech platform to analyze #1 one-stop-shop infrastructure the Deutsc
Slide 8: Group financials Q2/2021
Group financials Q2/2021 Net revenue | €m EBITDA | €m Cash EPS1 | € Note +13% +18% +24% +4% (organic) +13% (organic) +19% (organic) Net interest €33m income −39% €383m 882 Operating cost +12% 778 −2% (organic) €20m Financial investments +236% 518 Depreciation2 €71m 441 1.79 Financial res
Slide 9: Group financials H1/2021
Group financials H1/2021 Net revenue | €m EBITDA | €m Cash EPS1 | € Note +3% +1% +3% −3% (organic) −2% (organic) +0% (organic) Net interest €67m income −45% €730m 1,692 1,737 Operating cost +10% −1% (organic) €32m Financial investments +1589% 1,033 1,039 Depreciation2 €133m 3.48 3.60 Fin
Slide 10: Net revenue development
Net revenue development H1/2021 | €m Consolidation Secular growth Cyclical growth Note +5% CAGR +6% CAGR − 1% C A G R H1/2021 net revenue growth rate compared to 2019 (Compass 2023 +10% base year) fully in-line with expected CAGR growth trajectory. 1,737 Consolidation effects vs. H1/2019 -
Slide 11: Operating cost development
Operating cost development H1/2021 | €m Consolidation Organic Note + 11 % −1% Consolidation effects driven by ISS, Quantitative Brokers (Eurex) and Fund Centre (IFS). 737 Generally, prudent management of -7 730 operating costs due to cyclical headwinds. 76 661 H1/20 H1/21 Deutsche Börse Grou
Slide 12: Eurex (financial derivatives)
Eurex (financial derivatives) Q2/2021 Net revenue | €m EBITDA | €m Business activity −10% −16% −12% (organic) −16% (organic) Total 425m derivatives −3% 272 Index 190m derivatives −24% 29 244 15 26 36 Other1 Fixed income 148m 14 15 Eurex data 184 derivatives +26% 17 Margin fees2 12 13 OTC cle
Slide 13: EEX (commodities)
EEX (commodities) Q2/2021 Net revenue | €m EBITDA | €m Business activity +8% +29% Power 152 TWh spot 0% 77 Power 1,576 TWh 71 derivatives −5% 21 Other1 15 Gas 624 TWh +6% 10 12 Gas 35 29 27 Power derivatives 27 17 17 Power spot Q2/20 Q2/21 Q2/20 Q2/21 1) Including net revenue from connectivity,
Slide 14: 360T (foreign exchange)
360T (foreign exchange) Q2/2021 Net revenue | €m EBITDA | €m Business activity +8% +33% Average daily €90bn volumes (ADV) +11% 26 24 6 Other1 4 14 11 19 20 Trading Gain of around €2 million from the new valuation of the stake in 360X in the result from financial investments. Q2/20 Q2/21 Q2/20
Slide 15: Xetra (cash equities)
Xetra (cash equities) Q2/2021 Net revenue | €m EBITDA | €m Business activity −1% +16% Order book volume2 €391bn Equities −17% 94 94 Order book volume2 €60bn 11 ETF, ETC, ETN −2% 11 Other1 26 65 33 Xetra data 56 4 5 Listing 54 44 Trading & clearing Final proceeds from the sale of the Regulatory
Slide 16: Clearstream (post-trading)
Clearstream (post-trading) Q2/2021 Net revenue | €m EBITDA | €m Business activity −5% −13% Assets under €12.9tr custody +9% 213 Settlement 18.2m 202 transactions (ICSD) −1% 25 6 25 Other1 20 6 Third party services Cash balances €14.1bn 20 Collateral management total volume −11% 25 12 Net interes
Slide 17: IFS (investment fund services)
IFS (investment fund services) Q2/2021 Net revenue | €m EBITDA | €m Business activity +142% +385% +97% (organic) +252% (organic) Assets under €3.2tr custody +26% 123 Settlement 10.2m transactions +8% 40 Book gain 91 14 Other1 40 Book gain 20 Fund distribution 51 14 22 Settlement 16 19 51 B
Slide 18: Qontigo (index and analytics business)
Qontigo (index and analytics business) Q2/2021 Net revenue | €m EBITDA | €m Business activity +8% +67% ETF assets under €113bn management +33% Exchange licences 177m 58 traded contracts −24% 53 15 Analytics 14 41 25 Other licences 25 24 8 Exchange licences 7 Gain of around €10 million from the
Slide 19: ISS (Institutional Shareholder Services)
ISS (Institutional Shareholder Services) Q2/2021 Net revenue | €m EBITDA | €m Note +17%1 +45%1 ESG net revenue contains Corporate Solutions, ESG Analytics and Governance Solutions 60 businesses. Non-ESG net revenue amongst others contains Market Intelligence, Media as well as FWW (fund data)
Slide 20: Outlook
Outlook FY/2021 Net revenue guidance | €m EBITDA guidance | €m Note +10% CAGR Compass 2023 mid-term plan targets 10% net revenue growth Compass 2023 target CAGR (5% secular + 5% M&A) and 10% EBITDA growth CAGR. ~4.3bn +10% CAGR For 2021 Deutsche Börse expects: 2021 target: Compass 2023 target −
Slide 21: Appendix
Appendix Deutsche Börse Group │ 28 July 2021 20
Slide 22: Income statement – group level
Income statement – group level (in €m) Q2/2021 Q2/2020 Sales revenue 1,031.0 837.8 Treasury result from banking business 32.6 53.3 Other operating income 49.3 1.8 Total revenue 1,112.9 892.9 Volume-related costs –231.2 –115.4 Net revenue 881.7 777.5 Staff costs –257.1 –220.0 Other operating expenses
Slide 23: Income statement – segmental level I/II
Income statement – segmental level I/II Eurex EEX 360T Xetra (financial derivatives) (commodities) (foreign exchange) (cash equities) (in €m) Q2/21 Q2/20 Q2/21 Q2/20 Q2/21 Q2/20 Q2/21 Q2/20 Net revenue 243.7 271.5 76.6 71.2 25.6 23.6 93.9 94.4 Staff costs –57.4 –53.5 –24.3 –23.7 –9.7 –10.2 –24.0 –26
Slide 24: Income statement – segmental level II/II
Income statement – segmental level II/II Clearstream IFS Qontigo ISS (post-trading) (investment fund services) (index and analytics business) (Institutional Shareholder Services) (in €m) Q2/21 Q2/20 Q2/21 Q2/20 Q2/21 Q2/20 Q2/21 Q2/20 Net revenue 201.5 212.6 122.9 50.8 57.6 53.4 59.9 Staff costs –62
Slide 25: Financial calendar and contact details
Financial calendar and contact details Financial calendar 13 Sep 2021 Barclays Global Financial Services Conference (virtual/ New York) 14 Sep 2021 Morningstar Management Behind The Moat Conference 2021 (virtual/ Chicago) Deutsche Börse AG 16 Sep 2021 UBS FinTech One-on-One Virtual Conference (virtu
Slide 26: 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