Presentation: Q2/2020 results - analyst and investor conference call (30 July 2020)

Q2/2020

Financial results

Analyst and Investor Conference Call 30 July 2020

Summary Q2/2020 results presentation

Net revenue growth of 7% in Q2 to €778 million mainly driven by continued positive contribution of secular growth initiatives (+7%).

Organic operating cost development in Q2 (+8%) continued to be mainly driven by higher investments; adjusted EBITDA increased

by 4% to €483 million and the adjusted EPS amounted to €1.57.

Strong H1 results driven by exceptionally high volatility in Q1:

Net revenue up 17% to €1.7 billion and adjusted net profit up 16% to €676 million.

Despite strong first half year, guidance for 2020 remains unchanged at around €1.20 billion adjusted net profit.

Next mid-term plan "Compass 2023" is scheduled to be presented at the Investor Day on 18 November (Frankfurt & virtual).

7%

Net revenue growth Q2

€1.57

Earnings per share (adj.) Q2

€676m

Net profit (adj.) H1

~€1.20bn

Net profit guidance 2020 (adj.)

18 November

Investor Day 2020

Deutsche Börse Group | 30 July 2020 | 1

Group financials

Q2/2020 | €m

Net revenue	Operating costEBITDA		Net profit		Note

 +7%
 +5% (organic)
 +7% (secular)
	778
725
Q2/19	Q2/20

• +15%
• + 8% (organic)

260	300
Q2/19	Q2/20

 +4%	→ 0%
 +4% (organic)	 +3% (organic)

Net interest income

			Exceptional cost
			items
466	483		Depreciation
		288	Financial result
		288
			Tax rate
			EPS (adj.)
Q2/19	Q2/20	Q2/19	Q2/20

€50m −24%

€42m

€62m

−€18m

26%

€1.57

−1%

Note: Adjusted for exceptional items. Organic growth incl. Axioma (Qontigo), Ausmaq (IFS) and Börse Berlin (Xetra) like-for-like.

Deutsche Börse Group | 30 July 2020 | 2

Eurex (financial derivatives)

Q2/2020 | €m

Net revenue		EBITDA
 +6%		 +4%

272

255

29 Other1

Business activity

Total	436m
derivatives	−16%
Index	248m

29	15	Eurex data
15	26	Margin fees2
15	14	OTC clearing3
10
15	12	Equity
54	45	Fixed income

118 131 Index

Q2/19 Q2/20

185	192
Q2/19	Q2/20

derivatives	+6%
Fixed income		117m
derivatives		−18%
Equity		69m
derivatives		−51%
OTC notional		€18.6tr
outstanding (avg.)		+37%
OTC notional		€9.1tr
cleared (incl. compr.)		+28%

Note: EBITDA adjusted for exceptional items.

1. Including net revenue from connectivity and member fees.
2. Including NII and securities collateral fee.
3. Including margin fees on OTC clearing related collateral.

Deutsche Börse Group | 30 July 2020 | 3

EEX (commodities)

Q2/2020 | €m

Net revenue		EBITDA
→ 0%		 −3%

71 71

17	15	Other1

11	10	Gas
		35	34
25	29	Power derivatives
19	17	Power spot
Q2/19	Q2/20	Q2/19	Q2/20
Note: EBITDA adjusted for exceptional items.
1) Including net revenue from connectivity, member fees and emission allowances.

Business activity

Power	153 TWh
spot	+2%
Power	1,660 TWh
derivatives	+20%
Gas	591 TWh
	−13%

Deutsche Börse Group | 30 July 2020 | 4

360T (foreign exchange)

Q2/2020 | €m

Net revenue		EBITDA
 +8%		 +7%

24

22

4 Other1

4

Business activity

Average daily	€81bn
volumes (ADV)	0%

18	19	Trading

Q2/19 Q2/20

10	10
Q2/19	Q2/20

Note: EBITDA adjusted for exceptional items.

1) Including net revenue from connectivity and member fees.

Deutsche Börse Group | 30 July 2020 | 5

Xetra (cash equities)

Q2/2020 | €m

Net revenue		EBITDA
 +19%		 +25%
 +18% (organic)		 +24% (organic)

94

11 Other1

79
10	26	Xetra data
			60
26	4	Listing
		48
5
	54	Trading & clearing
38
Q2/19	Q2/20	Q2/19	Q2/20

Note: EBITDA adjusted for exceptional items. Organic growth incl. Börse Berlin (Q4/19) like-for-like.

1. Including net revenue from connectivity.
2. Xetra, Börse Frankfurt and Tradegate.

Business activity

Order book volume2	€470bn
Equities	+35%
Order book volume2	€61bn
ETF, ETC, ETN	+73%

Deutsche Börse Group | 30 July 2020 | 6

Clearstream (post-trading)

Q2/2020 | €m

Net revenue		EBITDA
 −1%		 −5%

215 213

21	25	Other1

6 6 Third party services

19

20 Collateral management

Business activity

Assets under		€11.8tr
custody		+3%
Settlement		18.5m
transactions (ICSD)		+33%

51	25	Net interest income
	30	Settlement
20

98 107 Custody

Q2/19 Q2/20

141	134
Q2/19	Q2/20

Cash balances		€15.8bn
total volume		−1%
t/o US-Dollar		€7.7bn
	−3%
Collateral		€563bn
outstandings		+25%

Note: EBITDA adjusted for exceptional items.

1) Including net revenue from connectivity, account services and reporting.

Deutsche Börse Group | 30 July 2020 | 7

IFS (investment fund services)

Q2/2020 | €m

Net revenue		EBITDA
 +17%		 +21%
 +12% (organic)		 +18% (organic)

	51
44	14	Other1
13
	16	Settlement	26
13		21
18	20	Custody
Q2/19	Q2/20	Q2/19	Q2/20

Note: EBITDA adjusted for exceptional items. Organic growth incl. Ausmaq (Q3/19) like-for-like. 1) Including net revenue from connectivity, order routing, Clearstream Fund Desk and Ausmaq.

Business activity

Assets under	€2.5tr
custody	+2%
Settlement	9.5m
transactions	+42%

Deutsche Börse Group | 30 July 2020 | 8

Qontigo (index and analytics business)

Q2/2020 | €m

Net revenue		EBITDA
 +38%		 + 5%
 + 1% (organic)		 +11% (organic)

53

14 Analytics

39
21	25	Other licences	26	28
8	7	Exchange licences
10	8	ETF
Q2/19	Q2/20		Q2/19	Q2/20

Note: EBITDA adjusted for exceptional items. Organic growth incl. Axioma (Q3/19) like-for-like.

Business activity

ETF assets under	€85bn
management	−11%
Exchange licences	235m
traded contracts	+8%

Deutsche Börse Group | 30 July 2020 | 9

Group financials

H1/2020 | €m

Net revenue

 +17%

 +14% (organic)

 + 7% (secular)

1.692

1.446

Operating cost	EBITDA		Net profit
 +16%	 +17%	 +16%
 + 9% (organic)	 +17% (organic)	 +19% (organic)

Note

Net interest		€118m
income		−8%
Exceptional cost		€70m
items

H1/19

H1/20

509	591
H1/19	H1/20

	1.103
941
H1/19	H1/20

580	676
H1/19	H1/20

Depreciation		€124m
Financial result		−€35m

Tax rate		26%
EPS (adj.)		€3.68
	+16%

Note: Adjusted for exceptional items. Organic growth incl. Axioma (Qontigo), Ausmaq (IFS) and Börse Berlin (Xetra) like-for-like.

Deutsche Börse Group | 30 July 2020 | 10

Secular growth trend remained intact

H1/2020 | €m
Consolidation	Secular growth	Cyclical growth
 +3%	 +7%	 +7%
		+17%
			1,692
			103
		107
1,446	36
H1/19			H1/20

Note: Numbers may not add up due to rounding.

Note

Consolidation effects mainly driven by Qontigo (Axioma) and a small contribution from IFS (Ausmaq).

All segments with positive secular growth contribution, with good progress at Eurex, IFS, Qontigo and 360T.

Cyclical growth mainly driven by exceptionally high volatility in Q1 due to the Corona situation.

Deutsche Börse Group | 30 July 2020 | 11

Operating cost development

H1/2020 | €m

						Variable-/
						share based
Consolidation		Investments		Net inflation		comp.
 +7%		 +7%		→ 0%		 2%

+9% (organic)

		591
	0	11
	38
509	34
H1/19		H1/20

Note: Numbers may not add up due to rounding. Adjusted for exceptional items.

Note

Consolidation effects mainly driven by Qontigo (Axioma) and a small contribution from IFS (Ausmaq).

Higher investments in growth and technology, increase in personnel, as well as additional operating costs due to Corona situation.

Inflationary pressures off-set by increase of operating efficiency.

Increase of variable-/ share based compensation mainly due to share price performance.

Deutsche Börse Group | 30 July 2020 | 12

Outlook

FY/2020 | €m

Net profit guidance

Note

Mid-term target

Despite strong H1/2020, guidance

+10-15% CAGR

for 2020 remains unchanged.

+17%

+10%

~1.20bn

For FY/2020 Deutsche Börse

1.106

expects:

1.003

857

Continued secular net revenue

growth of at least 5% and

around €1.20 billion

adjusted net profit.

FY/17

FY/18

FY/19

FY/20E

Note: Adjusted for exceptional items.

Deutsche Börse Group | 30 July 2020 | 13

Appendix

Deutsche Börse Group | 30 July 2020 | 14

Income statement - group level reported

(in €m)	Quarter ended	Quarter ended
30 June 2020	30 June 2019
Sales revenue	837.8	747.7
Net interest income from banking business	50.4	66.7
Other operating income	4.7	3.0
Total revenue	892.9	817.4
Volume-related costs	-115.4	-92.6
Net revenue	777.5	724.8
Staff costs	-220.0	-186.1
Other operating expenses	-122.6	-105.4
Operating costs	-342.6	-291.5
Net income from strategic investments	5.8	0.7
Earnings before interest, tax, depreciation and amortization (EBITDA)	440.7	434.0
Depreciation, amortization and impairment losses	-62.6	-55.4
Earnings before interest and tax (EBIT)	378.1	378.6
Financial result	-18.4	-11.6
Earnings before tax (EBT)	359.7	367.0
Income tax expense and other tax	-93.3	-93.0
Net profit for the period	266.4	274.0
thereof attributable to Deutsche Börse shareholders	256.7	266.9
thereof attributable to non-controlling interests	9.7	7.1
Earnings per share (basic) (€)	1.40	1.46

Deutsche Börse Group | 30 July 2020 | 15

Income statement - group level adjusted

(in €m)	Quarter ended	Quarter ended
30 June 2020	30 June 2019
Sales revenue	837.8	747.7
Net interest income from banking business	50.4	66.7
Other operating income	4.7	3.0
Total revenue	892.9	817.4
Volume-related costs	-115.4	-92.6
Net revenue	777.5	724.8
Staff costs	-199.1	-171.7
Other operating expenses	-101.1	-88.3
Operating costs	-300.2	-260.0
Net income from strategic investments	5.8	0.7
Earnings before interest, tax, depreciation and amortization (EBITDA)	483.1	465.5
Depreciation, amortization and impairment losses	-62.3	-54.7
Earnings before interest and tax (EBIT)	420.8	410.8
Financial result	-18.4	-11.6
Earnings before tax (EBT)	402.4	399.2
Income tax expense and other tax	-104.6	-103.7
Net profit for the period	297.8	295.5
thereof attributable to Deutsche Börse shareholders	288.1	288.4
thereof attributable to non-controlling interests	9.7	7.1
Earnings per share (basic) (€)	1.57	1.58

Deutsche Börse Group | 30 July 2020 | 16

Income statement - segmental level I/II

	Eurex		EEX		360T		Xetra
	(financial derivatives)		(commodities)		(foreign exchange)		(cash equities)
(in €m)	Q2/20	Q2/19	Q2/20	Q2/19	Q2/20	Q2/19	Q2/20	Q2/19
Net revenue	271.5		255.3	71.2	71.3	23.6		21.8	94.4	79.3
Staff costs adj.	-49.8		-43.2	-22.5	-20.9	-10.0		-8.6	-23.3	-21.4
Other operating expenses adj.	-34.2		-27.2	-14.9	-15.5	-3.4		-3.7	-12.1	-11.2
Operating costs adj.	-84.0		-70.4	-37.4	-36.4	-13.4		-12.3	-35.4	-32.6
Operating costs reported	-92.3		-74.8	-44.2	-39.0	-13.1		-14.0	-39.5	-34.7
Result from equity investments	4.9		0.3	-0.1	-0.1	0.0		0.0	1.2	1.3
EBITDA adj.	192.4		185.2	33.7	34.8	10.2		9.5	60.2	48.0

Deutsche Börse Group | 30 July 2020 | 17

Income statement - segmental level II/II

	Clearstream		IFS		Qontigo
	(post-trading)		(investment fund services)		(index and analytics business)
(in €m)	Q2/20	Q2/19	Q2/20	Q2/19	Q2/20	Q2/19
Net revenue	212.6	214.8	50.8		43.6	53.4		38.7
Staff costs adj.	-55.0	-53.5	-17.6		-16.3	-20.9		-7.8
Other operating expenses adj.	-23.8	-19.8	-7.7		-6.2	-5.0		-4.7
Operating costs adj.	-78.8	-73.3	-25.3		-22.5	-25.9		-12.5
Operating costs reported	-92.5	-82.8	-32.0		-26.6	-29.0		-16.7
Result from equity investments	-0.2	-0.8	0.0		0.0	0.0		0.0
EBITDA adj.	133.6	140.7	25.5		21.1	27.5		26.2

Deutsche Börse Group | 30 July 2020 | 18

Financial calendar and contact details

Financial calendar

26	Aug 2020	Virtual US Roadshow organised by Commerzbank
		Deutsche Börse AG
01	Sep 2020	Virtual Group Meeting for US investors organised by Morgan Stanley
		Investor Relations
02	Sep 2020	Virtual Group Meeting for European investors organised by JP Morgan
		Mergenthalerallee 61
09	Sep 2020	Virtual Group Meeting for German investors organised by Metzler
		65760 Eschborn
14	Sep 2020	Barclays Global Financials New York Conference (virtual)
		Germany
21	Sep 2020	Goldman Sachs and Berenberg German Corporate Conference (virtual)
22 Sep 2020	BofA Global Research 25th Annual Financials CEO Conference (virtual)
		Phone: [phone]
23	Sep 2020	Baader Investment Conference (virtual)
		Fax: [phone]
30	Sep 2020	Morningstar's Management Behind the Moat Conference (virtual)
		E−Mail: [e-mail]
28	Oct 2020	Publication quarterly statement Q3/2020
		www.deutsche-boerse.com/ir_e
29	Oct 2020	Analyst and investor conference call Q3/2020
09	Nov 2020	UBS European Virtual Conference 2020 (virtual)
11 Nov 2020
18	Nov 2020	Investor Day 2020 (Frankfurt & virtual)

Deutsche Börse Group | 30 July 2020 | 19

Disclaimer

Cautionary note with regard to forward-lookingstatements: 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

1. 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 2020. All rights reserved.