Deutsche Boerse Ag · XETR:DB1
Deutsche Boerse — Deutsche Börse — Investor Day (November 2023)
81 slides from Deutsche Boerse's investor day presentation, Nov 7, 2023
Slide 1: Investor Day 2023 – Strategy Horizon 2026
Investor Day 2023 Strategy Horizon 2026 7 November 2023
Slide 2: Agenda
Agenda Horizon 2026 Theodor Weimer Chief Executive Officer Investment Management Solutions Stephan Leithner Member of the Executive Board SimCorp / Axioma Christian Kromann CEO of SimCorp ISS STOXX Gary Retelny President and CEO of ISS Trading & Clearing Thomas Book Member of the Executive Board Sec
Slide 3: Horizon 2026
Horizon 2026 Theodor Weimer CEO
Slide 4: Our top 3 strategic imperatives for Horizon 2026
Investor Day 2023 │ Horizon 2026 Our top 3 strategic imperatives for Horizon 2026 The future Digital Create the basis for leadership growth beyond 2026 Investment Management Solutions The must do SimCorp / Axioma & ISS / STOXX Make the new segment Growth, synergy realisation and margin expansion a s
Slide 5: Strong track record for growth, overdelivering on our objectives
Investor Day 2023 │ Horizon 2026 We have demonstrated a strong track record for growth, overdelivering on our objectives Net revenue | €bn 13% CAGR 2017-23E 5% + 4% + 4% Compass 2023 secular cyclical M&A (target: net revenue ~10% CAGR, t/o ~5% organic) CAGR CAGR CAGR ~5.0 Growth out of own Normalisa
Slide 6: Since 2017 we evolved our business model into higher growth and recurring revenue areas
Investor Day 2023 │ Horizon 2026 Since 2017 we evolved our business model significantly into higher growth and recurring revenue areas Key factors that underpin our success Segmental split of net revenue | % Investment €2.5bn ~€5.0bn ~€6.4bn Management 5 Solutions 17 We are consistently exploiting a
Slide 7: We depart from a position of strength into Horizon 2026
Investor Day 2023 │ Horizon 2026 We depart from a position of strength into Horizon 2026, despite 2022 being a record year Beneficial secular Secular industry trends are fully intact and are expected to A industry trends drive our organic growth for years to come Normalised interest rate The normali
Slide 8: We can effectively capture important industry trends
Investor Day 2023 │ Horizon 2026 A We can effectively capture important industry trends as the infrastructure provider with the broadest value chain Investment Secular industry trends Management Trading & Fund Securities Solutions Clearing Services Services Unchanged growing importance of buy-side a
Slide 9: Our strategy addresses the increasing importance of the buy-side
Investor Day 2023 │ Horizon 2026 A Our strategy directly addresses the ever-increasing importance of the buy-side Increasing importance of the buy-side We are structurally attractive for … and have grown Capital markets revenue pools (€bn) the buy-side … our exposure CAGR % 500 700 850 1,000 ▪ Neutr
Slide 10: Normalisation of interest rate environment will remain beneficial
Investor Day 2023 │ Horizon 2026 B Normalisation of interest rate environment will remain beneficial Net interest income | €m Interest rate | % Securities & Fund Services FED funds rate ECB deposit rate ~700 6 ▪ In the past, we operated in an abnormal interest rate environment 5 ~500 ▪ Due to the hi
Slide 11: We operate a diversified and resilient business model
Investor Day 2023 │ Horizon 2026 C We operate a diversified and resilient business model Strategic Illustrative We operate a very attractive and resilient attractiveness business model, as all segments … High Trading & Clearing ▪ operate at very attractive EBITDA margins 1.6 ▪ grow net revenue at mi
Slide 12: Overview Horizon 2026
Investor Day 2023 │ Horizon 2026 Overview Horizon 2026 Strong Investment organic Management Digital growth Solutions leadership Operating in attractive Offering end-to-end investment Taking a leading role in the Ambition I markets and benefitting from II solutions and high-quality data III digitalis
Slide 13: We see strong organic growth ahead of us
Investor Day 2023 │ Horizon 2026 I We see strong organic growth ahead of us Our key focus continues to be secular growth, benefitting … while cyclicality is expected to be only from industry trends and evolving client needs, … modestly positive from 2022 to 2026 Segment Net revenue | €bn CAGR While
Slide 14: The new Investment Management Solutions segment is opening up growth opportunities
Investor Day 2023 │ Horizon 2026 II The new Investment Management Solutions segment is opening up additional growth opportunities Scope of Index Index Index Index business Analytics Analytics Analytics ▪ With the new segment we are ESG ESG ESG targeting the growing share of wallet of the buy-side in
Slide 15: Investment Management Solutions consists of two attractive businesses
Investor Day 2023 │ Horizon 2026 II Investment Management Solutions consists of two highly attractive businesses with strong growth prospects Investment Management Solutions + ▪ Combined SimCorp and Axioma providing front-to-back ▪ ISS STOXX with best-of-breed data offering targeting investment mana
Slide 16: Key digital leadership initiatives: cloud adoption and digital infrastructure
Investor Day 2023 │ Horizon 2026 III Key digital leadership initiatives are cloud adoption and enablement as well as our new digital infrastructure ▪ We are building on our leading position by increasing cloud adoption (from ~40% today to Continuous cloud ~70%) and enablement Digital Necessary base
Slide 17: We steer our business along refined capital allocation priorities
Investor Day 2023 │ Horizon 2026 IV We steer our business along refined capital allocation priorities ▪ Organic growth driven by secular industry trends continues to have the highest Organic growth capital allocation priority 1 “key priority” ▪ To support organic net revenue growth our operating cos
Slide 18: Outlook Horizon 2026 – double digit net revenue and earnings growth
Investor Day 2023 │ Horizon 2026 Outlook Horizon 2026 – double digit net revenue and earnings growth Net revenue | €bn EBITDA | €bn Cash EPS | € 10% 11% 11% CAGR CAGR CAGR ~6.4 3% 3% ~3.8 ~12.9 7% 2.5 8.61 7% 4.3 2022 organic M&A 2026E 2022 2026E 2022 2026E (SimCorp) Opportunistic M&A agenda and dig
Slide 19: Investment Management Solutions
Investment Management Solutions Stephan Leithner Member of the Executive Board
Slide 20: Investment management industry is growing, but facing fundamental changes
Investor Day 2023 │ Investment Management Solutions Investment management industry is growing, but facing fundamental changes Large and growing revenue pool CAGR 2018-26E Key trends Capital markets revenue pools1 | €bn ▪ Increasing gap between top and ~800 bottom quartile players ~700 ▪ Revenue marg
Slide 21: Deutsche Börse already positioned as infrastructure, data and technology provider to the buy-side
Investor Day 2023 │ Investment Management Solutions Before SimCorp, Deutsche Börse already positioned as an infrastructure, data and technology provider to the buy-side Investment management value chain Deutsche Börse businesses Front-office Mid- and back-office Distribution Research, ESG data, Sele
Slide 22: Deutsche Börse with SimCorp positioned to offer front-to-back solutions
Investor Day 2023 │ Investment Management Solutions Deutsche Börse with SimCorp very well positioned to offer front-to-back solutions for investment management industry Investment management value chain Deutsche Börse businesses Front-office Mid- and back-office Distribution Research, ESG data, Data
Slide 23: Step change via the SimCorp acquisition
Investor Day 2023 │ Investment Management Solutions Step change via the SimCorp acquisition: Data & Analytics becomes Investment Management Solutions Former Data & Analytics segment … for Investment Management Solutions, a truly serving as the foundation … front-to-back investment industry offering
Slide 24: Investment Management Solutions comprises two strong businesses in attractive markets
Investor Day 2023 │ Investment Management Solutions Investment Management Solutions comprises two strong businesses in highly attractive markets Investment Management Solutions Total addressable market1 €bn and CAGR % Fully integrated front-to- Quality data, index and ~21 back investment +8% analyti
Slide 25: Segment will generate run-rate EBITDA synergies of ~€90 million by 2026E
Investor Day 2023 │ Investment Management Solutions Investment Management Solutions segment will generate run-rate EBITDA synergies of ~€90 million by 2026E SimCorp / Axioma ISS STOXX ~€60 million run-rate EBITDA impact by 2026E ~€30 million run-rate EBITDA impact by 2026E ~€35m ~€20m ▪ Investments
Slide 26: Further synergy potential from internal and external ecosystem
Investor Day 2023 │ Investment Management Solutions Further synergy potential from internal and external ecosystem, as strategic partner of choice for investment managers Deutsche Börse as structurally Deutsche Börse’s value proposition unfolds attractive partner for the buy-side full potential thro
Slide 27: Segment targeting net revenue CAGR of 9%
Investor Day 2023 │ Investment Management Solutions Investment Management Solutions segment targeting net revenue CAGR of 9% Investment Management Solutions net revenue | €m 9% CAGR ~170 ~1,650 ~300 ESG +100 ~750 ~1,180 Index2 +45 SaaS +110 ISS STOXX ~580 Market +25 Analytics / Axioma2 +75 Intellige
Slide 28: SimCorp / Axioma
SimCorp / Axioma Christian Kromann CEO SimCorp
Slide 29: SimCorp is a leading investment industry tech provider with 50+ years track record
Investor Day 2023 │ SimCorp / Axioma SimCorp is a leading investment industry tech provider with 50+ years track record of offering flexibility and efficiency Gross revenue breakdown by product Market leadership … & Best-in-class capabilities … … and strong client base offering … and long-lasting ex
Slide 30: SimCorp serves the full investment industry value chain
Investor Day 2023 │ SimCorp / Axioma SimCorp serves the full investment industry value chain catering to >300 financial institutions globally Asset Managers Life / Pension Funds Central Banks SimCorp serves a broad range of Fund Managers Asset Servicers Treasuries clients … Sovereign Wealth Insurers
Slide 31: Breaking down the uniqueness of SimCorp
Investor Day 2023 │ SimCorp / Axioma Breaking down the uniqueness of SimCorp We help investors run their business through the entire life-cycle – from investment idea to accounting Client value E2E integrated data Open platform • Operational efficiency model ▪ No reconciliations ▪ Ecosystem interope
Slide 32: Future winners will have highly efficient "all-weather" operating models
Investor Day 2023 │ SimCorp / Axioma Future winners will have highly efficient and adaptable “all-weather” operating models Front to back solution + in-house Front to back solution + Front to back solution + hosting and operations outsourced IT operations and outsourced business operations hosting (
Slide 33: Ongoing SaaS transformation
Investor Day 2023 │ SimCorp / Axioma Ongoing SaaS transformation SaaS transformation Highlights of current status ▪ Existing clients, mostly in Europe, switching to SaaS solution ▪ Almost all new clients, especially in North >54 SimCorp >6,700 America, choose SaaS >79 SaaS Dimension SimCorp clients
Slide 34: Combination of SimCorp and Axioma creates an industry leading front-to-back platform
Investor Day 2023 │ SimCorp / Axioma Combination of SimCorp and Axioma creates a truly industry leading front-to-back platform with best-in-class capabilities SimCorp and Axioma joint value proposition End-to-end value chain coverage Portfolio Joint full front-to-back- Portfolio design implementatio
Slide 35: Value delivered to combined SimCorp and Axioma clients
Investor Day 2023 │ SimCorp / Axioma Value delivered to combined SimCorp and Axioma clients Examples of clients landed or expanded via our existing partnership Globally diversified sovereign wealth Multinational investment manager fund with USD ~850bn AuM with USD >1tr AuM National pension funds wit
Slide 36: We're rethinking Portfolio Management
Investor Day 2023 │ SimCorp / Axioma We’re rethinking Portfolio Management Portfolio management of the future Fully cross Next-gen digital asset experience Holistic portfolio and risk Best-in- Fluid, flexible, and fully management across public class FO & integrated user interactions and private ass
Slide 37: SimCorp will continue ARR growth KPI to reflect SaaS-based business model
Investor Day 2023 │ SimCorp / Axioma SimCorp will continue Annual Recurring Revenue (ARR) growth KPI to reflect SaaS-based business model 2023 2023-26E Outlook SimCorp is well on track to deliver targeted Introducing joint SimCorp and Axioma ARR growth standalone ARR growth in 2023 (up from previous
Slide 38: ISS STOXX
ISS STOXX Gary Retelny President and CEO of ISS
Slide 39: ISS STOXX comprises five complementary business lines
Investor Day 2023 │ ISS STOXX ISS STOXX comprises five complementary business lines that leverage an integrated data and tech infrastructure Governance & ESG Index Market Intelligence Governance research High-quality ESG Solutions to manage Established and global Research, data, insight, and advisor
Slide 40: ISS STOXX's ESG business lines provide market leading research, data and analytics
Investor Day 2023 │ ISS STOXX ISS STOXX’s ESG business lines provide market leading, high-quality research, data and analytics services … Governance & ESG business lines Global leader in providing objective Innovative and high-quality ESG research, Solutions to help companies design and manage gover
Slide 41: Well-established Index and Market Intelligence business lines
Investor Day 2023 │ ISS STOXX … complemented by its well-established and highly regarded Index and Market Intelligence business lines Index business line Market Intelligence business line Established and global provider of benchmark Leading index of German companies serving Provides critical researc
Slide 42: ESG growth outlook continues to be strong
InvestorInvestor Day 2023 Day│2023 Trading │ ISS & Clearing STOXX ESG growth outlook continues to be strong Strong ESG growth trajectory… …with prevailing industry dynamics Global Spending on ESG research, data and indices | €bn 3.0 1 ESG market demand continues to grow ESG factor adoption due to ri
Slide 43: Compelling ISS STOXX offering with quality and scale under a proven management team
Investor Day 2023 │ ISS STOXX Compelling ISS STOXX offering with quality and scale under a proven management team ▪ ISS has delivered strong growth since becoming part of Deutsche Börse Group outperforming the initial investment case Governance & ESG ▪ Unique leadership team with long-term industry
Slide 44: Trading & Clearing
Trading & Clearing Thomas Book Member of the Executive Board
Slide 45: High value platform businesses, performing strongly in scale and network effects
Investor Day 2023 │ Trading & Clearing Trading & Clearing – High value platform businesses, performing strongly in scale and network effects Financial Derivatives Commodities Cash equities Foreign Exchange Value drivers Platform KPIs1 Market proposition Global distribution 3,500 Benchmark Multi asse
Slide 46: Strong in execution – Delivering steady secular growth
Investor Day 2023 │ Trading & Clearing Strong in execution – Delivering steady secular growth Milestones in successful business development Net revenue 2022 | €m CAGR 2017-22 ▪ Connectivity roadmap ▪ Repo F7 platform Market ▪ Trading hours extension infrastructure ▪ Collateral roadmap 380 +24% ▪ Col
Slide 47: Attractive market environment – Foundation for future growth
Investor Day 2023 │ Trading & Clearing Attractive market environment – Foundation for future growth Market environment Capital markets revenue pools | €bn1 ▪ Rates and inflation Macroeconomic to stay higher for longer environment ▪ Geopolitical uncertainties 1,000 and spikes as new normal 850 ▪ OTC
Slide 48: Business agenda with clear focus – Eurex and EEX core growth engines
Investor Day 2023 │ Trading & Clearing Business agenda with clear focus – Financial Derivatives (Eurex) and Commodities (EEX) core growth engines going forward Market environment Focus on value creation Platform development enabler 1 ORGANIC ROADMAP Macroeconomic R7 Next-generation ▪ Fixed income ro
Slide 49: Organic roadmap / Financial Derivatives – Fixed income roadmap
Investor Day 2023 │ Trading & Clearing Organic roadmap / Financial Derivatives – 1 Fixed income roadmap major driver of secular growth Top organic growth levers Strategic ambition Net revenue growth €m | 2022-26E ▪ Positive environment for €LTIR, Fixed income ▪ New products in credit, rates and FX d
Slide 50: Home of the Euro-Yield-Curve
Investor Day 2023 │ Trading & Clearing Organic roadmap / Financial Derivatives – “Home of the Euro- 1 Yield-Curve” Unique position to capture growth in fixed income Long term interest rate derivatives OTC interest rate derivatives ▪ Market leader in Euro government bond Home of the ▪ Partnership pro
Slide 51: Organic roadmap / Commodities (EEX)
Investor Day 2023 │ Trading & Clearing Organic roadmap / Commodities (EEX) – 1 From local specialised to global commodity exchange of choice Top organic growth levers Top add-on growth levers Strategic position ▪ Leading power exchange globally Strengthen with strong roots into physical markets New
Slide 52: R7 Next-generation Risk Management Platform
Investor Day 2023 │ Trading & Clearing R7 Next-generation Risk Management Platform – 2 Technology leadership unlocks tangible business value Technology leadership Platform development Business value Next-generation Portfolio margining – Effective risk management R7 Risk Management Platform Margin an
Slide 53: Building new business / Digital transformation – Positioning for an evolving ecosystem
Investor Day 2023 │ Trading & Clearing Building new business / Digital transformation – 3 Positioning for an evolving new ecosystem New ecosystem evolving… Institutional grade offering… Our proposition …driven by innovation and technology …missing in current market structure >10,000 USD103bn Digital
Slide 54: Creating a digital asset platform to serve institutional customers
Investor Day 2023 │ Trading & Clearing Building new business / Digital transformation – 3 Creating a digital asset platform to serve institutional customers Connecting our capabilities across the value chain and use cases Available today Crypto Currency Products / Use cases ✓ Brokerage ✓ Settlement
Slide 55: Well diversified mix of businesses
Investor Day 2023 │ Trading & Clearing Well diversified mix of businesses – Secular growth in focus with upside optionality Secular growth 2022-26 Upside optionality Financial Strong vs. record Geopolitical ▪ Low volatility environment 2023 high baseline 2022 uncertainties ▪ Derivatives Market spike
Slide 56: Trading & Clearing Horizon 2026 – Continued strong organic growth momentum
Investor Day 2023 │ Trading & Clearing Trading & Clearing Horizon 2026 – Continued strong organic growth momentum Net revenue mid-term guidance | €bn Turning potential into results ▪ 6% Industry leading platform businesses, performing strongly in scale and network effects CAGR ▪ Strong in execution;
Slide 57: Securities Services
Securities Services Stephan Leithner Member of the Executive Board
Slide 58: Securities Services with growth trajectory of 7% CAGR excluding NII
Investor Day 2023 │ Securities Services Securities Services with growth trajectory of 7% CAGR even excluding net interest income Demonstrated growth path Core strategic vectors Net revenue1 | €m 7% 1 Demonstrated organic fee growth CAGR excl. NII dynamics from resilient business model with further g
Slide 59: Global infrastructure player with upside for upcoming cycle
Investor Day 2023 │ Securities Services 1 Global infrastructure player with upside for upcoming cycle Unique “at scale” CSD/ICSD positioning Further secular growth drivers (strategic vectors) Macro-economic tailwinds from resurgence of fixed income as asset class €14.5tr #1 Assets under T2S gateway
Slide 60: Sustainable revenue through structural net interest income
Investor Day 2023 │ Securities Services 2 Sustainable revenue through structural net interest income growing with operational settlement turnover Operational cash balances Linked to underlying business +2-3% CAGR Major share of client cash held overnight stable and linked to settlement services 20 A
Slide 61: D7 as first fully digital securities infrastructure
Investor Day 2023 │ Securities Services 3 D7 as first fully digital securities infrastructure – further accelerating in partnership with Google Cloud D7 vision Roadmap – accelerated by Google and Digital Asset platform Clearstream as regulated operator of decentral post-trade infrastructure network
Slide 62: Strong organic fee growth to offset cyclical normalisation of NII
Investor Day 2023 │ Securities Services Strong organic fee growth to offset cyclical normalisation of net interest income Net revenue mid-term guidance | €bn 9% 7% CAGR CAGR Continued, strong structural fee-revenue w/o NII growth ~1.5 ~0.5 Structural net interest income component 1.11 Net interest d
Slide 63: Fund Services
Fund Services Stephan Leithner Member of the Executive Board
Slide 64: Fund Services now offers integrated one-stop shop proposition
Investor Day 2023 │ Fund Services Fund Services now offers integrated one-stop shop proposition to distributors and asset managers Integrated product line; Vestima Established stand-alone bank in fund processing and custody & Luxembourg, providing tailored regulatory settlement capabilities of ICSD
Slide 65: Fund Services' volumes outperforming muted market recovery
Investor Day 2023 │ Fund Services Fund Services’ volumes outperforming muted market recovery – strong long-term structural growth outlook AuM growth 2017-2021 AuM growth 2021-2023 Drivers of resilience and outperformance Strong historical Outperformed in market growth turbulences 9% 10% Partnering w
Slide 66: Fund Services' main strategic vectors to realise further growth
Investor Day 2023 │ Fund Services Fund Services’ main strategic vectors to realise further growth opportunities Unique positioning as global fund ecosystem Strategic vectors €3.3tr >€400bn Assets under Assets under Fully capitalise on outsourcing potential custody1 administration1 from distributors
Slide 67: Three components contributing to net revenue ambition of 11% CAGR by 2026
Investor Day 2023 │ Fund Services Three components contributing to continuous strong net revenue ambition of 11% CAGR by 2026 Net revenue mid-term guidance | €bn Secular growth drivers 11% Global outsourcing mandates CAGR ~0.6 Cross-selling across Execution, NII Distribution, Data and Innovation 0.4
Slide 68: Financials
Financials Gregor Pottmeyer CFO
Slide 69: Since 2017 we have delivered strong financials
Investor Day 2023 │ Financials Since 2017 we have delivered strong financials Net revenue | €bn EBITDA | €bn Cash EPS | € 13% 13% 13% CAGR CAGR CAGR ~5.0 ~9.75 ~2.9 2.5 4.80 1.4 2017 2023E 20171 2023E 2017 2023E 1) EBITDA adjusted for exceptional items (€1.5bn reported) Deutsche Börse Group | 7 Nove
Slide 70: Good progress in all growth areas – secular growth the consistent driver
Investor Day 2023 │ Financials We have made good progress in all growth areas – especially secular growth has become the consistent driver Net revenue | €bn / CAGR Net revenue growth | % CAGR 2017-23E 13% CAGR Investment Management 38 Solutions ~4% ~5.0 ~4% ~0.6 Trading & Clearing 7 ~5% ~0.8 ~1.1 2.
Slide 71: Continuous long-term growth demonstrates strength of diversified business model
Investor Day 2023 │ Financials Continuous long-term growth demonstrates the strength of our well diversified business model Net revenue | €bn 11% CAGR CAGR 2017-26E ▪ Guidance for 2026 is effectively 10% CAGR an upgrade to the 7-9% organic CAGR 2022-26E growth target issued at the Investor Day in 20
Slide 72: The key driver for our 2026 targets will be organic growth
Investor Day 2023 │ Financials The key driver for our 2026 targets will be organic growth Net revenue | €bn The organic growth is expected to be driven mainly 1 by secular effects 10% Cyclicality is expected to be only modestly positive until 2026, with higher net interest income (~€500 CAGR million
Slide 73: All segments expected to contribute to organic net revenue growth until 2026
Investor Day 2023 │ Financials All segments are expected to contribute to the organic net revenue growth until 2026 Net revenue growth and composition of growth until 2026E Investment Management Solutions Trading & Clearing Synergies FX 9% SimCorp 6% Commodities Financial organic CAGR +0.5 (organic)
Slide 74: Balance investments in long-term growth with effective cost management
Investor Day 2023 │ Financials We will continue to balance investments in long-term growth with effective cost management going forward Operating costs | €bn 10% CAGR Total cost growth ▪ We expect underproportional organic cost growth (5% CAGR) compared to the expected ~2.7 organic net revenue growt
Slide 75: Outlook Horizon 2026 – double digit net revenue and earnings growth
Investor Day 2023 │ Financials Outlook Horizon 2026 – double digit net revenue and earnings growth Net revenue | €bn EBITDA | €bn Cash EPS | € 10% 11% 11% CAGR CAGR CAGR ~6.4 3% 3% ~3.8 ~12.9 7% 2.5 8.61 7% 4.3 2022 organic M&A 2026E 2022 2026E 2022 2026E (SimCorp) Opportunistic M&A agenda and digit
Slide 76: Strong net revenue growth complemented by stronger Cash EPS development
Investor Day 2023 │ Financials Strong net revenue growth is complemented by an even stronger development of Cash EPS Cash EPS | € 12% ▪ Cash EPS is our leading “post CAGR 2017-26E everything” earnings KPI, that best measures our profitability and cash flow generation 11% ▪ Main driver is the organic
Slide 77: Our climate strategy – new long term climate targets
Investor Day 2023 │ Financials Our climate strategy – We set ourselves new long term climate targets to be validated by the Science-Based Targets initiative ▪ Scope 1 & 2: Deutsche Börse aims to reduce absolute scope 1 and 2 emissions by 42% by 2030 from Near–term a 2022 base year targets ▪ Scope 3:
Slide 78: Continued strong credit rating despite SimCorp acquisition
Investor Day 2023 │ Financials Continued strong credit rating despite SimCorp acquisition Net debt / EBITDA | ratio FFO / net debt | % AA‒ S&P credit rating Target: no more than 2.25x Target: at least 40% Outlook stable ▪ Rating reflects the expectation that we ~2.3 79 76 will deliver on our growth
Slide 79: We are committed to generating attractive returns for our shareholders
Investor Day 2023 │ Financials We are committed to generating attractive returns for our shareholders Dividend and payout ratio development Refined Capital Management Payout ratio (%) Dividend per share (€) Committed to achieving AA‒ rating at group level and AA at Clearstream >3.60 3.60 3.20 30–40%
Slide 80: Key takeaways Horizon 2026
Key takeaways Horizon 2026 Refined capital allocation priorities Point of departure ▪ Change reflects strategic progress and positive outlook 1 ▪ Active in highly attractive markets 4 ▪ Modernised, more flexible capital allocation framework ▪ Very strong portfolio of businesses ▪ First share buy-bac
Slide 81: Disclaimer / Contact
Disclaimer Contact 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 Deutsche Börse AG statements are subject t