Deutsche Börse Group

Half-yearly financial report

Quarter 2/2022

Deutsche Börse Group | Half-yearly financial report Q2/2022

Group interim management report | Q2/2022: Deutsche Börse Group achieves strong organic growth

Group interim financial statements

Notes

Further information

Q2/2022: Deutsche Börse Group achieves strong organic growth

Overview of quarterly results

  • Net revenue increased by 15 per cent to €1,017.8 million in the second quarter of 2022, supported by high trading volumes and an increase in net interest income.
  • Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased to €584.9 million, a 13 per cent rise.
  • Net profit for the period attributable to Deutsche Börse AG shareholders totalled €341.1 million, up 10 per cent on the same quarter of the previous year. Earnings per share before purchase price allocation stood at €1.98.

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Deutsche Börse Group | Half-yearly financial report Q2/2022

Group interim management report | Group interim management report Q2/2022

Group interim financial statements

Notes

Further information

Group interim management report Q2/2022

Fundamental information about the Group

The fundamental information about the Group described on pages 23 to 26 of the Annual Report 2021 is still valid taking into consideration the comparability of figures.

Comparability of figures

To reduce the complexity of its financial reporting and emphasise the Group's growth areas more clearly, the segment reporting was adjusted in accordance with the Group's management structure as of the first quarter of 2022 (including the respective amounts for the first quarter of the prior year). The eight existing segments will from now on be condensed to four: Data & Analytics (including the Qontigo and ISS segments), Trading & Clearing (Eurex, EEX, 360T and Xetra segments), Fund Services (IFS segment) and Securities Services (Clearstream segment).

Changes in the basis of consolidation

Acquisition of Kneip Communication S.A. (Kneip)

In the first quarter of 2022, Deutsche Börse AG completed the acquisition of 100 per cent of the shares in Kneip Communication S.A. (Kneip), thereby gaining control. Upon completion of the transaction on 31 March 2022, Kneip will be allocated to the Fund Services segment.

Sale of shares in REGIS-TR

On 31 March 2022 Clearstream Banking S.A. and Clearstream Holding AG successfully closed the sale of their respective 50 per cent stake in the European trade repositories REGIS-TR S.A. and REGIS-TR UK Ltd. to its joint venture partner Iberclear, part of SIX.

Loss of control over Tradegate Exchange GmbH and Börse Berlin AG

In course a capital restructuring at Tradegate Exchange GmbH on 17 June 2022, Deutsche Börse AG's voting rights in the company were reduced from 60.0 per cent to around 42.8 per cent. As a result, Deutsche Börse AG is no longer able to control Tradegate Exchange GmbH and its subsidiary Börse Berlin AG and has deconsolidated both companies. Tradegate Exchange GmbH will in future be accounted for as an associated company using the at-equity method.

Material business relationships with related parties and key management personnel

Details of material business relationships with related parties and key management personnel are provided in Note 15 to the condensed consolidated financial statements.

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Deutsche Börse Group | Half-yearly financial report Q2/2022

Group interim management report | Group interim management report Q2/2022

Group interim financial statements

Notes

Further information

Report on the economic position

The first half of 2022 was heavily influenced by geopolitical as well as economic factors. Russia's ongoing war against Ukraine and the related consequences took centre stage. Sanction measures, among other factors, up to and including the closure of production sites in the affected areas, caused supply bottlenecks to become more severe. A resurgence of COVID-19 infections in China, which was accompanied by widespread lockdowns in metropolitan areas, further exacerbated this effect. At the same time, the sharp increase in energy prices drove inflation concerns in financial markets on both sides of the Atlantic. Market participants' fear that central banks would implement their monetary policy measures faster than expected put pressure on global equity markets. Already in the first half of the year the US Federal Reserve increased the interest rate corridor in several steps to 1.50-1.75 per cent. Similarly, the European Central Bank (ECB) raised its key interest rate by 0.50 percentage points at its July meeting and envisaged a further normalisation of the interest rates. In light of the growing uncertainty surrounding future economic trends and a possible recession, market volatility, as measured by the VSTOXX, stood 50 per cent higher on average in the first six months of 2022 than in the same period of the previous year. In addition, the US dollar gained strength significantly year-on-year compared to the Euro due to the tightening in US monetary policy.

Against the backdrop of the economic environment described above, the International Monetary Fund (IMF) also revised its outlook for 2022 downwards in its April report, in some cases significantly, compared to the January forecast. It is now forecasting global economic growth of 3.6 per cent

(- 0.8 percentage points). It expects the euro area to grow by 2.8 per cent (-1.1 percentage points) and Germany by 2.1 per cent (-1.7 percentage points). Further declines in its forecasts are likely when it issues its next update in July.

Beyond the effects described above, the macroeconomic and industry-specific framework conditions have not changed significantly compared to what was presented in the Annual Report 2021 (page 45).

Business operations and the Group structure have not changed significantly compared to what was presented in the Annual Report 2021 (on pages23-26).

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Deutsche Börse Group | Half-yearly financial report Q2/2022

Group interim management report | Group interim management report Q2/2022

Group interim financial statements

Notes

Further information

Results of operations

Key figures on results of operations of Deutsche Börse Group

Second Quarter

First Half-year

01 Apr - 30 Jun

01 Jan - 30 Jun

2022

2021

Change

2022

2021

Change

€m

€m

%

€m

€m

%

Sales revenue

1,151.7

1,031.0

12%

2,339.3

2,054.8

14%

Treasury result from banking

and similar business

78.2

32.6

140%

138.5

67.2

106%

Other operating income

23.6

49.3

‒52%

79.8

68.6

16%

Total revenue

1,253.5

1,112.9

13%

2,557.6

2,190.6

17%

Volume related costs

‒235.7

‒231.2

2%

‒478.2

‒453.8

5%

Net revenue

1,017.8

881.7

15%

2,079.4

1,736.8

20%

Staff

‒299.1

‒257.1

16%

‒584.4

‒485.6

20%

Other operating expense

‒133.0

‒126.1

5%

‒254.4

‒244.1

4%

Operating costs

‒432.1

‒383.2

13%

‒838.8

-729.7

15%

Net inc. financial investments

‒0.8

19.5

‒104%

31.7

32.1

‒1%

EBITDA

584.9

518.0

13%

1,272.3

1,039.2

22%

Depreciation, amortisation and

‒81.6

‒70.8

‒166.0

‒132.5

impairment losses

15%

25%

EBIT

503.3

447.2

13%

1,106.3

906.7

22%

Financial result

‒25.7

‒11.3

127%

‒34.5

‒25.2

37%

EBT

477.6

435.9

10%

1,071.8

881.5

22%

Tax

‒124.1

‒113.4

9%

‒278.7

‒229.2

22%

Net Income

353.5

322.5

10%

793.1

652.3

22%

thereof attributable to Deutsche

Börse AG shareholders

341.1

310.9

10%

761.9

628.2

21%

thereof attributable to non-

controlling interests

12.4

11.6

7%

31.2

24.1

29%

Earnings per share (€)

1.86

1.69

10%

4.15

3.42

21%

Earnings per share before

purchase price allocation

(Cash EPS) (€)

1.98

1.79

11%

4.38

3.60

22%

Against the background of the economic environment previously described in the report on our economic position, the results of our Group's operations in the second quarter of 2022 were comparable to those of the first quarter. Geopolitical risks, rising inflation rates and a rapid increase in key interest rates led to significant trading activity in the financial markets across all asset classes, which had a particular positive impact on the Trading & Clearing segment. In the Securities Services segment, it led to an increase in net interest income from banking business.

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Deutsche Börse AG published this content on 26 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 July 2022 17:09:01 UTC.