Deutsche Boerse Ag · XETR:DB1
Deutsche Boerse — Deutsche Börse Group — FY2019 Earnings Presentation
25 slides from Deutsche Boerse's earnings presentation, Feb 18, 2020
Slide 1: Q4 and FY/2019 Preliminary results
Q4 and FY/2019 Preliminary results Analyst and Investor Conference Call 18 February 2020 Deutsche Börse Group 18 February 2020
Slide 2: Summary Q4 and FY/2019 preliminary results
Summary Q4 and FY/2019 preliminary results Solid full year performance after a very strong 2018 with increase of net revenue by 6% to €2.9 billion; 5% growth was contributed from secular initiatives and 1% from M&A. 6% net revenue growth Adjusted net profit increased as expected by 10% to €1.1 billi
Slide 3: Preliminary group financials Q4/2019
Preliminary group financials Q4/2019 (€m) Net revenue Operating cost EBITDA Net profit Note +2% +14% −5% +5% +7% (organic) Net interest €57m income −5% 740 757 Exceptional cost €33m items €62m Depreciation −18% 433 411 347 Financial result €−8m 306 231 242 Tax rate 26% €1.32 EPS (adj.) +6%
Slide 4: Eurex (financial derivatives)
Eurex (financial derivatives) Q4/2019 (€m) Net revenue EBITDA Business activity −9% −14% Total 463m derivatives −9% 257 32 235 Index 229m 8 31 Other1 derivatives −13% 15 13 OTC clearing2 13 12 Margin fees3 Fixed income 124m 13 Equity 164 derivatives −20% 58 142 46 Fixed income Equity 105m deriva
Slide 5: EEX (commodities)
EEX (commodities) Q4/2019 (€m) Net revenue EBITDA Business activity +3% −8% Power 150 TWh spot 0% 74 72 Power 1,570 TWh 18 Other1 derivatives +22% 20 600 TWh Gas 11 Gas +10% 10 32 27 Power derivatives 30 25 17 19 Power spot Q4/18 Q4/19 Q4/18 Q4/19 Note: EBITDA adjusted for exceptional items; EBI
Slide 6: 360T (foreign exchange)
360T (foreign exchange) Q4/2019 (€m) Net revenue EBITDA Business activity +12% +20% Average daily €86bn volumes (ADV) +14% 25 22 4 Other1 4 10 20 Trading 9 18 Q4/18 Q4/19 Q4/18 Q4/19 Note: EBITDA adjusted for exceptional items; EBITDA Q4/18 non-GAAP indicative figures. 1) Including net revenue f
Slide 7: Xetra (cash equities)
Xetra (cash equities) Q4/2019 (€m) Net revenue EBITDA Business activity −6% −13% Oder book volume2 €335bn Equities −14% 58 55 Oder book volume2 €37bn 11 ETF, ETC, ETN −7% 10 Other1 6 6 Listing 31 27 42 39 Trading & clearing Q4/18 Q4/19 Q4/18 Q4/19 Note: EBITDA adjusted for exceptional items; EBI
Slide 8: Clearstream (post-trading)
Clearstream (post-trading) Q4/2019 (€m) Net revenue EBITDA Business activity +4% −4% Assets under €11.8tr custody +4% 191 184 20 Other1 Settlement 14.3m 17 6 5 Third party services transactions (ICSD) +13% 42 NII Cash balances €16.0bn 44 total volume +17% 21 Settlement 110 106 19 Cash balances €
Slide 9: IFS (investment fund services)
IFS (investment fund services) Q4/2019 (€m) Net revenue EBITDA Business activity +24% +29% Assets under €2.6tr custody +9% 50 Settlement 7.5m 14 Other1 transactions +25% 40 11 15 Settlement 12 22 17 22 Custody 17 Q4/18 Q4/19 Q4/18 Q4/19 Note: EBITDA adjusted for exceptional items; EBITDA Q4/18 n
Slide 10: GSF (collateral management)
GSF (collateral management) Q4/2019 (€m) Net revenue EBITDA Business activity −7% −15% Collaterals €407bn outstandings +7% 22 20 Securities €58bn outstanding +16% 6 Securities lending 11 11 9 14 Collateral management 11 Q4/18 Q4/19 Q4/18 Q4/19 Note: EBITDA adjusted for exceptional items; EBITDA
Slide 11: Qontigo (index and analytics business)
Qontigo (index and analytics business) Q4/2019 (€m) Net revenue EBITDA Business activity +45% +10% ETF AuM €74bn STOXX +3% 68 ETF AuM €23bn DAX −8% 29 Other licences 47 Traded 212m contracts −12% 38 34 27 20 Analytics 8 8 Exchange licences 11 11 ETF Q4/181 Q4/19 Q4/181 Q4/19 Note: EBITDA adjuste
Slide 12: Data
Data Q4/2019 (€m) Net revenue EBITDA Business activity +2% +8% 322k Subscriptions −9% 39 40 6 Other1 6 6 Regulatory services 6 28 26 27 28 Cash and derivatives Q4/182 Q4/19 Q4/182 Q4/19 Note: EBITDA adjusted for exceptional items; EBITDA Q4/18 non-GAAP indicative figures. 1) Including net revenu
Slide 13: Preliminary group financials FY/2019
Preliminary group financials FY/2019 (€m) Net revenue Operating cost EBITDA Net profit Note +6% +8% +5% +10% +5% (organic) Net interest €246m income +20% 2,936 2,770 Exceptional cost €135m items €223m Depreciation 1,813 −6% 1,729 Financial result €−54m 1,130 1,106 1,046 1,003 Tax rate 26%
Slide 14: Secular growth trend remained intact
Secular growth trend remained intact FY/2019 (€m) Consolidation Secular growth Cyclical growth Note +1% +5% → −0% Net revenue growth from M&A, +6% mainly driven by Axioma (Q3/19), Swisscanto (Q4/18), GTX (Q2/18). -13 2,936 Secular growth in line with the 140 company’s plan, mainly driven by Eure
Slide 15: Operating cost development
Operating cost development FY/2019 (€m) Net Net Net consolidation investments inflation Note +3% +3% +2% Consolidation effects (Axioma, +5% (organic) Swisscanto) partly off-set by discontinuation of managed 1,130 services at Clearstream. 20 Higher investments in organic 36 growth initiatives,
Slide 16: Dividend per share and pay-out
Dividend per share and pay-out FY/2019 Pay-out ratio (%) Note 55 54 53 49 48 Deutsche Börse aims to distribute 40-60% of adjusted annual net +7% profit to shareholders in form of the €2.90 regular dividend. €2.70 Within the 40-60% range, pay-out €2.45 mainly depends on the business €2.35 €2.25 devel
Slide 17: Outlook
Outlook FY/2020 (€m) Net profit guidance Note Mid-term target “Roadmap 2020” financial targets +10-15% CAGR have been successfully reached so far (14% net profit CAGR 2017-19). +10% ~1.20bn +17% 1,106 For 2020 Deutsche Börse expects: 1,003 857 Continued secular net revenue growth of at least 5% and
Slide 18: Appendix
Appendix Deutsche Börse Group 17 18 February 2020
Slide 19: Income statement – group level adjusted
Income statement – group level adjusted Quarter ended Quarter ended (€m) 31 December 2019 31 December 2018 Sales revenue 791.4 764.5 Net interest income from banking business 56.8 60.0 Other operating income 7.1 5.9 Total revenue 855.3 830.4 Volume-related costs -98.7 -90.0 Net revenue 756.6 740.4 S
Slide 20: Income statement – group level reported
Income statement – group level reported Quarter ended Quarter ended (€m) 31 December 2019 31 December 2018 Sales revenue 791.4 764.5 Net interest income from banking business 56.8 60.0 Other operating income 7.1 5.9 Total revenue 855.3 830.4 Volume-related costs -98.7 -90.0 Net revenue 756.6 740.4 S
Slide 21: Income statement – segmental level I/II
Income statement – segmental level I/II Eurex EEX 360T Xetra (financial derivatives) (commodities) (foreign exchange) (cash equities) (€m) Q4/2019 Q4/2018 Q4/2019 Q4/2018 Q4/2019 Q4/2018 Q4/2019 Q4/2018 Net revenue 234.8 256.9 74.0 72.1 24.5 21.8 54.8 58.2 Staff costs adj. -43.5 -43.3 -24.2 -21.6 -9
Slide 22: Income statement – segmental level II/II
Income statement – segmental level II/II Clearstream IFS (investment GSF Qontigo (index and Data (post-trading) fund services) (collateral management) analytics business) (€m) Q4/2019 Q4/2018 Q4/2019 Q4/2018 Q4/2019 Q4/2018 Q4/2019 Q4/2018 Q4/2019 Q4/2018 Net revenue 190.9 183.7 49.8 40.2 20.0 21.6
Slide 23: IFRS 16 adjustments for 2018 (non-GAAP, indicative)
IFRS 16 adjustments for 2018 (non-GAAP, indicative) €m 2018 Q1 Q2 Q3 Q4 Full year Group Reduction of operating costs 12.5 12.6 12.5 12.7 50.3 Increase of depreciation and amortisation 11.8 11.8 11.8 11.8 47.2 Reduction of the financial result 0.7 0.7 0.8 0.7 2.9 Reporting segments (reduction of oper
Slide 24: Financial calendar and contact details
Financial calendar and contact details Financial calendar 19 Mar 2020 Morgan Stanley European Conference (London) Deutsche Börse AG 29 Apr 2020 Publication quarterly statement Q1/2020 Investor Relations 30 Apr 2020 Analyst and investor conference call Q1/2020 Mergenthalerallee 61 19 May 2020 Annual
Slide 25: 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