Presentation: Q4 and FY/2019 preliminary results - Analyst and Investor Conference Call (18 February 2020)

Q4 and FY/2019

Preliminary results

Analyst and Investor Conference Call 18 February 2020

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.

Adjusted net profit increased as expected by 10% to €1.1 billion and adjusted EPS amounted to €6.03 (+11%).

Executive Board proposes an increase of 2019 dividend per share by 7% to €2.90, a pay-out ratio of 48%.

Company very well on track with implementation of "Roadmap 2020":

consistent secular growth, 14% net profit CAGR 2017-19, focus on M&A in 2019 resulted in Axioma and Fondcenter acquisitions.

For 2020 the company expects a further increase of net revenue from

secular growth opportunities by at least 5% and around €1.20 billion

adjusted net profit.

6%

net revenue growth

10%

net profit growth (adj.)

€2.90

dividend per share (proposed)

Axioma GrexelAusmaq

NFX commodity

businessFondcenter

~€1.20bn

net profit FY/2020 (adj.)

Deutsche Börse Group

1

18 February 2020

Preliminary group financials

Q4/2019 (€m)

Net revenue

+2%
740	757

Operating cost	EBITDA
+14%	−5%

• +7% (organic)

Net profit

• +5%

Note

Net interest		€57m
income		−5%
Exceptional cost		€33m
items
Depreciation		€62m
	−18%

Q4/18

Q4/19

306	347
Q4/18	Q4/19

433	411
Q4/18	Q4/19

231	242
Q4/18	Q4/19

Financial result		€−8m
Tax rate
	26%
EPS (adj.)		€1.32
	+6%

Note: Adjusted for exceptional items; operating costs and EBITDA Q4/18 non-GAAP indicative figures.

Deutsche Börse Group

2

18 February 2020

Eurex (financial derivatives)

Q4/2019 (€m)

Net revenue		EBITDA
−9%		−14%

257

32 235

831Other1

15		OTC clearing2
13	13

12Margin fees3

58	13	Equity	164
			142
	46	Fixed income
132	120	Index
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 from connectivity and member fees.
2. Including margin fees on OTC clearing related collateral.
3. Including NII and securities collateral fee.

.

Business activity

Total		463m
derivatives		−9%
Index		229m
derivatives		−13%
Fixed income		124m
derivatives		−20%
Equity		105m
derivatives		+21%
OTC notional		€13.2tr
outstanding (avg.)	+40%
OTC notional		€7.4tr
cleared (incl. compr.)		+96%

Deutsche Börse Group

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18 February 2020

EEX (commodities)

Q4/2019 (€m)

Net revenue		EBITDA
+3%		−8%

72 74

18Other1

20
10	11	Gas
	27	32	30
25	Power derivatives
17	19	Power spot
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 from connectivity, member fees and emission allowances.

Business activity

Power		150 TWh
spot		0%
Power		1,570 TWh
derivatives	+22%
Gas		600 TWh
	+10%

Deutsche Börse Group

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18 February 2020

360T (foreign exchange)

Q4/2019 (€m)

Net revenue		EBITDA
+12%		+20%

25

22

4Other1

4

	20			10
18	Trading	9
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 from connectivity and member fees.

Business activity

Average daily	€86bn
volumes (ADV)	+14%

Deutsche Börse Group

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18 February 2020

Xetra (cash equities)

Q4/2019 (€m)

Net revenue		EBITDA
−6%		−13%

58

55

11

10 Other1

6

6Listing

Business activity

Oder book volume2		€335bn
Equities		−14%
Oder book volume2		€37bn
ETF, ETC, ETN		−7%

4239Trading & clearing

Q4/18 Q4/19

31
	27
Q4/18	Q4/19

Note: EBITDA adjusted for exceptional items; EBITDA Q4/18 non-GAAP indicative figures.

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

Deutsche Börse Group

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18 February 2020

Clearstream (post-trading)

Q4/2019 (€m)

Net revenue		EBITDA
+4%		−4%

184	191
17	20	Other1
5	Third party services
6
44	42	NII

19	21	Settlement	110	106
98	102	Custody
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 from connectivity, account services and reporting.

Business activity

Assets under		€11.8tr
custody		+4%
Settlement		14.3m
transactions (ICSD)		+13%
Cash balances		€16.0bn
total volume	+17%
Cash balances		€8.3bn
t/o US-Dollar	+18%

Deutsche Börse Group

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18 February 2020

IFS (investment fund services)

Q4/2019 (€m)

Net revenue		EBITDA
+24%		+29%

50

40	14	Other1

11

15Settlement

12			22
		17
17	22	Custody
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 from connectivity, order routing, Clearstream Fund Desk and Ausmaq.

Business activity

Assets under		€2.6tr
custody		+9%
Settlement		7.5m
transactions		+25%

Deutsche Börse Group

8

18 February 2020

GSF (collateral management)

Q4/2019 (€m)

Net revenue		EBITDA
−7%		−15%

22

20

6	Securities lending
11

Business activity

Collaterals€407bn

outstandings+7%

Securities€58bn

outstanding+16%

14Collateral management

11

Q4/18 Q4/19

11
	9
Q4/18	Q4/19

Note: EBITDA adjusted for exceptional items; EBITDA Q4/18 non-GAAP indicative figures.

Deutsche Börse Group

9

18 February 2020

Qontigo (index and analytics business)

Q4/2019 (€m)

Net revenue		EBITDA
+45%		+10%

68

29Other licences

47
		34	38
27
	20	Analytics
8	8	Exchange licences
11	11	ETF
Q4/181	Q4/19	Q4/181	Q4/19

Note: EBITDA adjusted for exceptional items; EBITDA Q4/18 non-GAAP indicative figures.

1. As part of resegmentation €3.3m net revenue has been restated from Data in Q4/2018.

Business activity

ETF AuM		€74bn
STOXX		+3%
ETF AuM		€23bn
DAX		−8%
Traded		212m
contracts		−12%

Deutsche Börse Group

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18 February 2020

Data

Q4/2019 (€m)

Net revenue		EBITDA
+2%		+8%

39 40

6	6	Other1

6	6	Regulatory services
		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 revenue from internal and external cooperation and CEF data services.
2. As part of resegmentation €3.3m net revenue has been restated to Qontigo in Q4/2018.

Business activity

Subscriptions	322k
−9%

Deutsche Börse Group

11

18 February 2020

Preliminary group financials

FY/2019 (€m)

Net revenue

+6%

2,936

2,770

Operating cost	EBITDA
+8%	+5%

• +5% (organic)

Net profit

• +10%

Note

Net interest		€246m
income		+20%
Exceptional cost		€135m
items
Depreciation		€223m

FY/18

FY/19

1,046	1,130
FY/18	FY/19

1,729	1,813
FY/18	FY/19

1,003	1,106
FY/18	FY/19

		−6%
Financial result		€−54m
Tax rate
	26%
EPS (adj.)		€6.03
	+11%

Note: Adjusted for exceptional items; operating costs and EBITDA FY/18 non-GAAP indicative figures.

Deutsche Börse Group

12

18 February 2020

Secular growth trend remained intact

FY/2019 (€m)
Consolidation	Secular growth	Cyclical growth
+1%	+5%	→−0%
		+6%
			-13	2,936
		140
2,770	39
FY/18				FY/19
Deutsche Börse Group		13		18 February 2020

Note

Net revenue growth from M&A, mainly driven by Axioma (Q3/19), Swisscanto (Q4/18), GTX (Q2/18).

Secular growth in line with the

company's plan, mainly driven by

Eurex, EEX, Qontigo, IFS and 360T.

Cyclical net revenue declined slightly, with interest income largly offsetting lower market volatility.

Operating cost development

FY/2019 (€m)

Net		Net		Net
consolidation		investments		inflation
+3%		+3%		+2%

+5% (organic)

	1,130
	20
	36
1,046	28
FY/18	FY/19

Note: Operating costs adjusted for exceptional items; operating costs FY/18 non-GAAP indicative figures.

Note

Consolidation effects (Axioma, Swisscanto) partly off-set by discontinuation of managed services at Clearstream.

Higher investments in organic growth initiatives, new technologies and regulation / IT security.

Inflationary pressures partly off-set by lower provisions for variable compensation.

Deutsche Börse Group

14

18 February 2020

Dividend per share and pay-out

FY/2019

Pay-out ratio (%)

55

54

53

49

48

+7%

€2.90

€2.70

€2.25 €2.35€2.45

FY/15	FY/16	FY/17	FY/18	FY/19
				(proposal)

Note: Adjusted for exceptional items.

Note

Deutsche Börse aims to distribute 40-60% of adjusted annual net profit to shareholders in form of the regular dividend.

Within the 40-60% range, pay-out mainly depends on the business development and dividend continuity considerations.

Remaining free cash is planned to be reinvested into the business to

support the Group's M&A strategy.

Deutsche Börse Group

15

18 February 2020

Outlook

FY/2020 (€m)

Net profit guidance

Note

"Roadmap 2020" financial targets

Mid-term target

+10-15% CAGR

have been successfully reached so

+17%

+10%

~1.20bn

far (14% net profit CAGR 2017-19).

1,106

For 2020 Deutsche Börse 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

16

18 February 2020

Appendix

Deutsche Börse Group

17

18 February 2020

Income statement - group level adjusted

(€m)	Quarter ended	Quarter ended
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
Staff costs	-192.1	-176.5
Other operating expenses	-155.3	-142.0
Operating costs	-347.4	-318.5
Net income from strategic investments	1.3	-2.0
Earnings before interest, tax, depreciation and amortization (EBITDA)	410.5	419.9
Depreciation, amortization and impairment losses	-61.7	-63.2
Earnings before interest and tax (EBIT)	348.8	356.7
Financial result	-8.4	-28.4
Earnings before tax (EBT)	340.4	328.3
Income tax expense and other tax	-88.5	-88.8
Net profit for the period	251.9	239.5
thereof attributable to Deutsche Börse shareholders	242.4	230.5
thereof attributable to non-controlling interests	9.5	9.0
Earnings per share (basic) (€)	1.32	1.25

Deutsche Börse Group

18

18 February 2020

Income statement - group level reported

(€m)	Quarter ended	Quarter ended
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
Staff costs	-191.0	-276.9
Other operating expenses	-189.2	-182.0
Operating costs	-380.2	-458.9
Net income from strategic investments	1.3	-2.0
Earnings before interest, tax, depreciation and amortization (EBITDA)	377.7	279.5
Depreciation, amortization and impairment losses	-63.8	-66.7
Earnings before interest and tax (EBIT)	313.9	212.8
Financial result	-8.4	-28.4
Earnings before tax (EBT)	305.5	184.4
Income tax expense and other tax	-82.8	-35.4
Net profit for the period	222.7	149.0
thereof attributable to Deutsche Börse shareholders	213.2	140.0
thereof attributable to non-controlling interests	9.5	9.0
Earnings per share (basic) (€)	1.16	0.77

Deutsche Börse Group

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18 February 2020

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	-9.8		-9.3	-15.4	-15.5
Other operating expenses adj.	-50.6		-49.6	-20.2	-19.3	-4.3		-4.1	-13.6	-13.9
Operating costs adj.	-94.1		-92.9	-44.4	-40.9	-14.1		-13.4	-29.0	-29.4
Operating costs reported	-98.5		-132.0	-54.0	-44.9	-15.7		-15.4	-29.5	-39.2
Result from equity investments	1.0		-2.9	-0.1	-0.2	0.0		0.0	1.1	1.2
EBITDA adj.	141.7		161.1	29.5	31.0	10.4		8.4	26.9	30.0

Deutsche Börse Group

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18 February 2020

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	67.8	46.6	40.1	39.3
Staff costs adj.	-47.0	-49.2	-17.4		-15.9	-6.3	-7.1	-21.4	-6.7	-7.1	-7.9
Other operating expenses adj.	-38.2	-29.9	-10.5		-8.5	-4.3	-4.0	-8.5	-6.0	-5.2	-6.7
Operating costs adj.	-85.2	-79.1	-27.9		-24.4	-10.6	-11.1	-29.9	-12.7	-12.3	-14.6
Operating costs reported	-90.1	-124.2	-31.7		-38.9	-9.9	-16.8	-33.2	-15.0	-17.7	-32.5
Result from equity investments	-0.2	0.0	0.0		0.0	-0.5	-0.5	0.0	0.0	0.0	0.4
EBITDA adj.	105.5	104.6	21.9		15.8	8.9	10.0	37.9	33.9	27.8	25.1

Deutsche Börse Group

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18 February 2020

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 operating costs)
Eurex (financial derivatives)	2.9	2.9	2.9	2.9	11.6
EEX (commodities)	0.8	0.8	0.8	0.9	3.3
360T (foreign exchange)	0.2	0.3	0.3	0.3	1.1
Xetra (cash equities)	1.1	1.1	1.0	1.0	4.2
Clearstream (post-trading)	4.8	4.8	4.8	4.9	19.3
IFS (investment fund services)	1.1	1.2	1.1	1.2	4.6
GSF (collateral management)	0.6	0.6	0.7	0.5	2.4
STOXX (index business)	0.5	0.4	0.4	0.4	1.7
Data	0.5	0.5	0.5	0.6	2.1

Note: Adjusted for exceptional items.

Deutsche Börse Group

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18 February 2020

Financial calendar and contact details

Financial calendar
19	Mar 2020	Morgan Stanley European Conference (London)
29	Apr 2020	Publication quarterly statement Q1/2020	Deutsche Börse AG
30	Apr 2020	Analyst and investor conference call Q1/2020	Investor Relations
19	May 2020	Annual General Meeting (Frankfurt)	Mergenthalerallee 61
28	May 2020	Investor Day (London)	65760 Eschborn
3 Jun 2020	Piper Sandler Global Exchange & Brokerage conference (New York)	Germany
4 Jun 2020	Deutsche Bank dbAccess Berlin Conference
10	Jun 2020	Goldman Sachs European Financials Conference (Rome)	Phone: [phone]
29	Jul 2020	Publication half-yearly financial report 2020	Fax: [phone]
30	Jul 2020	Analyst and investor conference call Q2/2020	E−Mail: [e-mail]
				www.deutsche-boerse.com/ir_e

Deutsche Börse Group

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18 February 2020

Disclaimer

Cautionary note with regard toforward-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 anyforward-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.

Deutsche Börse Group

18 February 2020