Investor Presentation - deutsche-boerse.com

Investor PresentationMarch 2022

Diversified, scalable and resilient business portfolio serves

as the basis for growth

March 2022

M u l t i - a s s e t c l a s s o f f e r i n g I n c r e a s i n g E S G r e l a t e d r e v e n u e H i g h r e c u r r i n g r e v e n u e

47% Equity/index

26% Fixed income

11% Funds

10% Commodities

3% Interest income

3% FX

55% Recurring

45% Transactional

14% 35%51%

Pre-trading€483m

Trading & clearing€1,809m

Post-trading€1,218m

7% 28% 10% 3% 10% 24% 11%7%

EEX | €342mcommodities

360T | €108mforeign exchange

IFS | €382minvestment fund

services

Qontigo | €259mindex & analytics

Eurex | €996mfinancial derivatives

Xetra | €364mcash equities

Clearstream | €835mpost-trading

FY/2021 | €3,510m net revenue

ISS | €224mInstitutional Shareholder Services

7% ESG related net revenue

(as of FY/21) (as of FY/21) (as of FY/21)

Deutsche Börse Group 2

March 2022Deutsche Börse Group 3

Compass 2023 Net revenue | €bn EBITDA | €bn

2.9

2019 2023E

~4.3

INCREASED

M&A CONTRIBUTION

CONTINUED

SECULAR GROWTHSecular

growth+5%

M&A

growth+5%

~10%C A G R

1.7

2023E2019

Secular

growth+7%

M&A

growth+3%

~10%C A G R

▪ Continuous improvement will be a key measure to capture efficiencies and ensure

scalability of the core business.

▪ While the overall EBITDA margin is expected to be broadly stable, the organic EBITDA

margin is expected to increase from ~57% in 2019 to ~61% in 2023.

With Compass 2023 we target continued secular growth

and an increased M&A contribution

Our key growth drivers are favorable capital market trends

March 2022

Major t rends

OTC TO

ON-EXCHANGE

BREXIT

SELL-SIDE

UNDER PRESSURE

IMPORTANCE

OF BUY-SIDE

DIGITIZATION

▪ Growing importance of futurization

▪ Standardization of OTC derivatives opportunity for central clearing

▪ Brexit creates momentum to shift margin and collateral pools

▪ Sell-side has to adapt due to regulatory and cost pressure

▪ Growing importance of buy-side and shift to passive products

▪ Increasing demand for analytics and ESG

▪ Technology and digitization are transforming the way

the financial sector operates (e.g. cloud, DLT)

▪ Severe implications for economy and markets

(digitization, efficiency, ESG)

Our credent ials

Eurex, EEX and 360T very well

positioned to win market share

Eurex OTC clearing is a winning

proposition

IFS with strong position to benefit

from outsourcing trend

Qontigo and ISS with strong

starting point to support demand

Leading technology is at

the core of our business model

Products and services across

the Group to support clientsCOVID-19


Our secular growth ambition is based on a broad set of initiatives

March 2022

Combine index and analytics to increase

buy-side penetration and become a leader

in the field of investment intelligence

Introduce new derivatives products

and build the leading OTC clearinghouse

in the Eurozone

Expand on the leading position in

European energy markets and win a

significant position in the US energy market

Further develop the FX one-stop-shop

exchange and OTC solutions with a

leading technology platform

Post- tradingTrading & clear ingPre-trading

Strengthen the European proposition

to continuously onboard new portfolios/

clients and grow custody services on

a global scale

Leverage the partnership model and add

new clients/services to strengthen the

leadership position for the funds service

business platform

Become a global ESG leader through the

highly complementary combination of ISS

and Deutsche Börse


We will continue to pursue our successful M&A agenda

March 2022

M&A focus areas

Pre-trading

▪ Index and analytics

▪ ESG

Post-trading

▪ Investment fund services

Trading & clearing

▪ Commodities

▪ Foreign exchange

▪ Fixed income

Strategic guidel ines

▪ Strong fit with strategic growth areas

▪ Value creation for shareholders

▪ Successful integration and synergy

potential

▪ Public M&A only with high closing

certainty

▪ Avoidance of auctions if possible

▪ Partnerships and majority stakes

preferred

▪ Larger deals (€1 – 5bn++) explicitly

targeted, but only if there is a strong

strategic fit and clear post merger

integration plan

Financial guidel ines

▪ Cash earnings accretive in year 1,

latest in year 3

▪ ROI in year 3 should be higher than

WACC (~6%) across M&A portfolio

▪ Margin dilution acceptable for

transactions with strong strategic fit


Additional opportunity for value creation through

our growing portfolio of minority investments

March 2022

▪ Minority investment portfolio includes a

broad range of attractive businesses along

the Deutsche Börse value chain.

▪ Altogether more than €200 million have

been invested so far (VC portfolio excluding

Tradegate with money multiple >2).

▪ Most investments represent significant

“hidden reserves”, but with an increasing

impact on the income statement (€85 million

EBITDA in 2021 compared to €24 million in

2020).

▪ Funding for future minority investments

increased by another €200 million on a case

by case decision basis (first new investment

Wematch.live).

AI-powered tech platform to analyse

the societal impact of investments

~15%

Selected minori ty investments

Serial construction and operation

of marketplaces for digital assets

(real estate, art, e-sports)

<50%

Leading German market maker; ~€3bn

market cap based on small free float

~20%

Electronic trading platform for

corporate bonds

~5%

#1 one-stop-shop infrastructure

ecosystem in private markets

~15%

Digital investor communications

platform incl. proxy voting

~10%


Our growth ambition is based on a multitude of strategic initiatives

March 2022

~0.2bn

2019 2023E

2,936

~0.4bn

~0.6bn

~0.1bn ~0

~4.3bn

Mid-term net revenue growth opportuni t ies (€m)

1| Exchange traded derivatives; 2| Global Funding & Financing; 3| Global Securities Financing

T r a d i n g & c l e a r i n g Po s t - t r a d i n g P r e - t r a d i n g

New ETD1 ~110

EEX ~90

360T/FX ~70

Pricing ~40

OTC IRS ~35

GFF2 ~30

Buy-in agent ~25

IFS ~100

Custody ~90

GSF3 and others ~30

Indices ~60

Analytics ~40

NII ~−130

Trading &

clearing,

Post-trading

~+170

Closed M&A ~100

ISS ~300

Future M&A ~200

BREAKDOWN BY PRODUCT FOR INDICATIVE PURPOSE

5%s e c u l a rC A G R 0%

c y c l i c a lC A G R 5%

M & AC A G R


t/o secular

Eurex – Trading and clearing of financial derivatives

March 2022

Key secular growth dr ivers

EQUITY INDEX BUSINESS – PRODUCT INNOVATION

▪ Leading global position with STOXX index family; unique innovation pipeline

to capture growth trends in index, futurization, ESG and ETF derivatives

FIXED INCOME BUSINESS – OTC CLEARING

▪ Partnership program driving volume growth by factor 6;

Euro Interest Rate Derivatives (IRD) with ~20% market share

SERVICE AND BUSINESS EXPANSION – ORGANIC AND M&A

▪ Quantitative Brokers – quant-tech algorithmic execution

▪ Buy-in Agent – service for failed securities settlement

Net revenue growth

>5%C A G R

7 – 10%

t/o M&A(Quantitative Brokers)

~1%C A G R

NET REVENUE

GROWTH

C A G R 2 0 1 9 - 2 3 E


t/o secular

EEX – Trading and clearing of commodity spot and

derivatives markets

March 2022

Key secular growth dr ivers Net revenue growth

>5%C A G R

▪ Further market share wins in European power and natural

gas markets vs. the uncleared OTC market

▪ Leveraging the unique physical-delivery capability of

our clearing house European Commodities Clearing

▪ Developing our US energy exchange Nodal, regionally

expanding business, strengthening Asian footprint

7 – 10%NET REVENUE

GROWTH

C A G R 2 0 1 9 - 2 3 E


t/o secular

360T – Foreign exchange markets

March 2022

Key secular growth dr ivers Net revenue growth

~10%C A G R

▪ FX market: Global, large and growing

▪ Shift to electronic execution and multi-dealer platforms;

reputation, regulatory status key

▪ Changing market structure: Rise of non-bank liquidity providers,

largest bank liquidity providers getting bigger, market fragmentation

▪ Reduced credit capacity: PB capacity linked to higher costs,

de-selecting clients based on credit availability, alternatives needed

▪ Technological progress:

Digitization, electronification, low latency, data

> 10%NET REVENUE

GROWTH

C A G R 2 0 1 9 - 2 3 E


t/o secular

IFS – Leading provider of investment fund distribution services

March 2022

Key secular growth dr ivers Revenue growth

~10%C A G R

t/o M&A(Ausmaq, UBS Fondcenter)

~6%C A G R

▪ Positioning in sweet spot of global fund sector growth, third party

distribution acceleration and outsourcing pressures

▪ Expanding #1 position as leading European fund processing

service provider with ~€3.1tr assets under custody

▪ Strengthening fund distribution services (via Fund Centre) as

foundation for growth and onboarding of new portfolios

▪ Cross-selling synergy effects from business combinations,

e.g. Ausmaq, Fund Centre, Clearstream (I)CSD

▪ Expanding in alternative fund shares issuance via digital

enablers and DLT (FundsDLT)

▪ Strengthening funds data and analytics solutions

> 15%NET REVENUE

GROWTH

C A G R 2 0 1 9 - 2 3 E


t/o secular

Qontigo – Building state-of-the-art investment products of the future

March 2022


~10%C A G R

t/o M&A(Axioma)

~5%C A G R

▪ Investment intelligence market will grow by 5-10%

p.a. with deep growth pockets of >15%

▪ Active-to-passive migration will continue – Qontigo

serves both and can leverage scale in index/passive

▪ Demand for seamless customer experience and margin pressure

will accelerate growth of E2E platforms and interoperable ecosystems

▪ Disruption by ESG and fast lateral entrants will lead to only few

mega-platforms and offer opportunities for superior analytics

▪ Qontigo aggregates scale with its open architecture platform

connecting its own as well as 3rd party content

> 15%NET REVENUE

GROWTH

C A G R 2 0 1 9 - 2 3 E


ISS – Innovative global leader in data, research and ESG

March 2022


▪ The global leader in corporate governance for more than three decades with a

rapidly growing position in broader ESG and distribution services

▪ ISS has strong and deep experience in operating emerging market data and

processing centers, which can be leveraged by Deutsche Börse

▪ Well established global business with excellent organic and inorganic growth

track record

▪ ISS’ business will transform Deutsche Börse Group into a global ESG leader;

Deutsche Börse’s significant financial resources will accelerate ISS’ product roadmap

▪ ISS with very strong US franchise and brand; leverage Deutsche Börse’s strong

European brand/network to expand in EMEA

▪ Highly complementary product offering already within ISS; strong linkages to

Deutsche Börse that offer concrete revenue synergies in/from pre- and post-trading

> 10%NET REVENUE

GROWTH

C A G R 2 0 1 9 - 2 3 E

▪ Financial performance in 2021 so far significantly

above initial expectations

▪ With strong secular growth prospects and bolt-on

M&A double-digit net revenue growth targeted


Long standing capital management policy is confirmed

March 2022

Rat ing

▪ AA rating mainly because of

post-trading business

▪ Net debt/EBITDA below 1.75x

▪ FFO/net debt above 50%

Dividend pol icy

▪ Payout between 40% to 60%

of net profit (reported)

▪ With increased earnings,

payout ratio expected to

decrease

Use of excess cash

▪ Preferably reinvested into the

business to support M&A

strategy; otherwise buy-backs

would be considered

Capi ta l a l locat ion

▪ Permanent review and

monitoring of business portfolio

▪ Maintain sound balance sheet

structure



Increased focus on ESG is reflected in our new sustainability

framework and KPI dashboard

Increase transparency

ESG reporting advice and

services combined with the

right incentivization to

increase overall market

transparency.

Provide solutions

Our products and

services provide

solutions for market

participants to directly

deal with ESG or

climate issues.

Lead by example

Through our own ESG

conduct and reporting we

lead by example and

encourage others.

Measure impact

With specific KPIs, we

measure our impact to

constantly improve our

own ESG strategy and

performance.

Susta inabi l i ty f ramew ork Key non- f inanc ia l KPIs

Performance

indicatorTarget

Achievement

in 2021

ESG ratings(MSCI, S&P, Sustainalytics)

>90th percentile 95th percentile

CO2 emission(per workspace)

Net zero until 2025

(−100% vs. 2019)

−66%

vs. 2019

ESG net revenue

growth >10% +210%

System availability(customer facing IT)

>99.5% 99.9%

Employee satisfaction >71.5% 75%

Women in leadership

positions>20% 21%

Group financialsFY/2021

1,8692,043

FY/20 FY/21

3,214

3,510

FY/21FY/20

6.07

6.98

FY/20 FY/21

Net interest

income

Operating cost

Financial investments

Depreciation2

Financial result

Net profit

EPS

+ 9 %

→ + 2 % ( o r g a n i c )

+ 9 %

+ 6 % ( o r g a n i c )

+ 1 5 %

+ 1 2 % ( o r g a n i c ) €143m

−27%

€294m

€−40m

€1,552m

+13%

0% (organic)

€1,210m

+12%

EBITDA | €m Cash EPS 1 | € NoteNet revenue | €m

€6.59

€85m


Note: Organic growth incl. Fund Centre (IFS),

Quantitative Brokers (Eurex), ISS (incl. Discovery Data) and

Crypto Finance (Xetra) like-for-like.

1) EPS before purchase price allocation.

2) Includes ~€95 million purchase price allocation effects.

Note

March 2022

Financial results 2021 fully in-line with:

▪ Annual guidance

~€3.5bn net revenue

~€2.0bn EBITDA

▪ Compass 2023 mid-term guidance:

10% CAGR for net revenue, EBITDA

and Cash EPS

We continue to make good progress on our

10% growth targets


1,6781,869

2,043

FY/20FY/19 FY/21

2,9363,214

3,510

FY/19 FY/21FY/20

5.646.07

6.98

FY/19 FY/20 FY/21

EBITDA | €m Cash EPS 1 | €Net revenue | €m

+9% C A G R

+ 6 % s e c u l a r

+ 5 % M & A

− 2 % c y c l i c a l

+10% C A G R

+11% C A G R


Outlook FY/2022

March 2022

Guidance 2019 – 23 ( C A G R )

NET REVENUE

~10%

EBITDA ~10%

Cash EPS1

~10%


5.64

2019 22E 23E

2,936

2019 23E22E

1,678

22E2019 23E

EBITDA | €mNet revenue | €m

+10% C A G R

C o m p a s s 2 0 2 3 t a r g e t

+10% C A G R

C o m p a s s 2 0 2 3 t a r g e t

2022 target

~2.2bn

2022 target

~3.8bn +10% C A G R

C o m p a s s 2 0 2 3 t a r g e t

Cash EPS 1 | €


D e u t s c h e B ö r s e A G

I n ve s t o r R e l a t i ons

M e r g en t ha l e ra l l ee 6 1

6 5 7 6 0 E s c h bo rn

G e r m a ny

P h o n e : + 4 9 6 9 2 1 1 1 1 6 7 0

F a x : + 4 9 6 9 2 1 1 1 4 6 0 8

E − M a i l : i r @ d e u t s c h e - bo e rs e . c om

www. d e u t s c he -b oe rs e . c om/ i r _ e

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 and uncertainties that could cause actual results, performance or events to

differ materially from those expressed or implied and that are beyond Deutsche Börse AG's ability to control or estimate precisely.

In addition to statements which are forward-looking by reason of context, the words 'may, will, should, expects, plans, intends,

anticipates, believes, estimates, predicts, potential, or continue' and similar expressions identify forward-looking statements.

Actual results, performance or events may differ materially from those statements due to, without limitation, (i) general economic

conditions, (ii) future performance of financial markets, (iii) interest rate levels (iv) currency exchange rates (v) the behaviour of

other market participants (vi) general competitive factors (vii) changes in laws and regulations (viii) changes in the policies of

central banks, governmental regulators and/or (foreign) governments (ix) the ability to successfully integrate acquired and merged

businesses and achieve anticipated synergies (x) reorganization measures, in each case on a local, national, regional and/or

global basis. Deutsche Börse AG does not assume any obligation and does not intend to update any forward-looking statements

to reflect events or circumstances after the date of these materials.

No obligation to update information: Deutsche Börse AG does not assume any obligation and does not intend to update any

information contained herein.

No investment advice: This presentation is for information only and shall not constitute investment advice. It is not intended for

solicitation purposes but only for use as general information.

All descriptions, examples and calculations contained in this presentation are for illustrative purposes only.

© Deutsche Börse AG 2022. All rights reserved.

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