Presentation: Q3/2020 results - analyst and investor conference call

Q3/2020

Financial results

Analyst and Investor Conference Call 29 October 2020

Summary Q3/2020 results presentation

Net revenue decreased by −4%1 to €708 million in Q3/20, with

secular net revenue growth of +4% and consolidation effects of +2% partially offsetting strong cyclical headwinds (−9%).

Flat organic operating cost development in Q3/20 reflects cost discipline in light of cyclical headwinds; adjusted EBITDA decreased

by −7% to €431 million and the adjusted EPS amounted to €1.38.

9M/20 net revenue up +10% to €2.4 billion and adjusted net profit up +8% to €928 million.

Despite the weaker development in Q3/20, guidance for 2020 remains unchanged at around €1.20 billion adjusted net profit; amongst others,

this is subject to an increase of market activity in Q4/20.

Next mid-term plan Compass 2023 will be presented at

the Investor Day on 18 November at 2pm CET (Frankfurt & virtual).

1) Number may not add up due to rounding.

+4%

Secular net revenue growth Q3/20

0%

Organic cost growth (adj.) Q3/20

€928m

Net profit (adj.) 9M/20

~€1.20bn

Net profit guidance 2020 (adj.)

18 November

Investor Day 2020

Deutsche Börse Group | 29 October 2020 | 1

Group financials

Q3/2020 | €m

Net revenue

 −4%
 −5% (organic)
 +4% (secular)
734	708

Operating cost	EBITDA
	+5%	 −7%
→	0% (organic)	 −6% (organic)

Net profit

• −11%
• −8% (organic)

Note

Net interest		€38m
income		−38%
Exceptional cost		€32m
items

Q3/19

Q3/20

274	288
Q3/19	Q3/20

462	431
Q3/19	Q3/20

283	253
Q3/19	Q3/20

Depreciation		€62m
Financial result		−€16m

Tax rate		26%
EPS (adj.)		€1.38
	−10%

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

Deutsche Börse Group | 29 October 2020 | 2

Eurex (financial derivatives)

Q3/2020 | €m

Net revenue		EBITDA
 −9%		 −19%

256

25 232

16 28 Other1

13

10	15	Eurex data	183
10		Margin fees2
22
55	13	OTC clearing3		149
8	Equity
	46	Fixed income
126
	99	Index
Q3/19	Q3/20		Q3/19	Q3/20

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.

Business activity

Total	370m
derivatives	−22%
Index	193m
derivatives	−22%
Fixed income	124m
derivatives	−16%
Equity	50m
derivatives	−33%
OTC notional	€18.8tr
outstanding (avg.)	+50%
OTC notional	€7.0tr
cleared (incl. compr.)	+28%

Deutsche Börse Group | 29 October 2020 | 3

EEX (commodities)

Q3/2020 | €m

Net revenue		EBITDA
 −6%		 −12%

70

66

17

18 Other1

10
	9	Gas
		37
			32
27	23	Power derivatives
17	16	Power spot
Q3/19	Q3/20	Q3/19	Q3/20

Note: EBITDA adjusted for exceptional items.

1) Including net revenue from connectivity, member fees and emission allowances.

Business activity

Power	146 TWh
spot	+1%
Power	1,320 TWh
derivatives	−8%
Gas	466 TWh
	−32%

Deutsche Börse Group | 29 October 2020 | 4

360T (foreign exchange)

Q3/2020 | €m

Net revenue		EBITDA
 −1%		 +3%

24 24

4	Other1
5

		12	12
21	19	Trading
Q3/19	Q3/20	Q3/19	Q3/20
Note: EBITDA adjusted for exceptional items.
1) Including net revenue from connectivity and member fees.

Business activity

Average daily	€83bn
volumes (ADV)	−4%

Deutsche Börse Group | 29 October 2020 | 5

Xetra (cash equities)

Q3/2020 | €m

Net revenue		EBITDA
 +5%		 +33%
 +4% (organic)		 +31% (organic)

86

81

11 Other1

11
			65
	28	Xetra data
28		49
	5	Listing
5
38	43	Trading & clearing
Q3/19	Q3/20	Q3/19	Q3/20

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

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

Business activity

Order book volume2	€364bn
Equities	+8%
Order book volume2	€49bn
ETF, ETC, ETN	+25%

EBITDA includes €12.6m equity method valuation result from Tradegate AG Wertpapier- handelsbank for Q1-3 2020.

Deutsche Börse Group | 29 October 2020 | 6

Clearstream (post-trading)

Q3/2020 | €m

Net revenue		EBITDA
 −8%		 −11%

208

20 191

5	22	Other1
19
5	Third party services
	18	Collateral management

Business activity

Assets under		€12.1tr
custody		+4%
Settlement		16.3m
transactions (ICSD)		+13%
Cash balances		€12.8bn

46	14 Net interest income

27 Settlement

21

97 104 Custody

Q3/19 Q3/20

128
	114
Q3/19	Q3/20

total volume	-18%
t/o US-Dollar		€6.4bn
	-23%
Collateral		€534bn
outstandings		+17%

Note: EBITDA adjusted for exceptional items.

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

Deutsche Börse Group | 29 October 2020 | 7

IFS (investment fund services)

Q3/2020 | €m

Net revenue		EBITDA
 +14%		 +34%
 +12% (organic)		 +33% (organic)

	55
48
	15	Other1
14
			32
	17	Settlement
14		24
21	22	Custody
Q3/19	Q3/20	Q3/19	Q3/20

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	€2.7tr
custody	+8%
Settlement	9.1m
transactions	+25%

Clearstream creates Fund Centreafter completing acquisition of majority stake in Fondcenter AG from UBS on 30 Sep 2020.

Deutsche Börse Group | 29 October 2020 | 8

Qontigo (index and analytics business)

Q3/2020 | €m

Net revenue		EBITDA
 +19%		 −7%
 − 3% (organic)		→ 0% (organic)

54

45	15 Analytics
6

		29	27
22	24	Other licences
8	7	Exchange licences
9	9	ETF
Q3/19	Q3/20	Q3/19	Q3/20

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

Business activity

ETF assets under	€89bn
management	−4%
Exchange licences	180m
traded contracts	−22%

Deutsche Börse Group | 29 October 2020 | 9

Group financials

9M/2020 | €m

Net revenue

 +10%

 + 8% (organic)

 + 6% (secular)

2,400

2,179

Operating cost	EBITDA
 +12%	 +9%
 + 6% (organic)	 +9% (organic)

Net profit

• + 8%
• +10% (organic)

Note

Net interest		€156m
income		−18%
Exceptional cost		€102m
items

9M/19

9M/20

782	879
9M/19	9M/20

1,403	1,534
9M/19	9M/20

863	928
9M/19	9M/20

Depreciation		€186m
Financial result		−€51m

Tax rate		26%
EPS (adj.)		€5.06
	+7%

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

Deutsche Börse Group | 29 October 2020 | 10

Secular growth trend remains intact

9M/2020 | €m
Consolidation	Secular growth	Cyclical growth
 +2%	 +6%	 +2%
		+10%
			2,400
			38
		134
2,179	48
9M/19			9M/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 COVID-19 situation, but increasing headwinds since Q2.

Deutsche Börse Group | 29 October 2020 | 11

Operating cost development

9M/2020 | €m

		Investments		Net inflation		Variable-/ share
Consolidation				based comp.
 +6%		 +6%		→ 0%		→ 0%

+6% (organic)

	879
2	2
47
47
782
9M/19	9M/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 COVID-19 situation (Q1).

Inflationary pressures off-set by increase of operating efficiency.

Variable-/ share based compensation flat, mainly due to share price development.

Organic operating cost growth minimized since Q3 to reflect weaker market environment.

Deutsche Börse Group | 29 October 2020 | 12

Outlook

FY/2020 | €m

Net profit guidance

Note

Mid-term target

Despite weaker Q3 development,

+10-15% CAGR

guidance for 2020 remains un-

changed, subject to an increase of

+17%

+10%

~1.20bn

market activity in Q4.

1,106

For FY/2020 Deutsche Börse

1,003

expects:

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 | 29 October 2020 | 13

Appendix

Deutsche Börse Group | 29 October 2020 | 14

Income statement - group level reported

(in €m)	Quarter ended	Quarter ended
30 Sep 2020	30 Sep 2019
Sales revenue	773.5	766.6
Net interest income from banking business	37.5	60.6
Other operating income	2.6	3.3
Total revenue	813.6	830.5
Volume-related costs	-106.1	-96.7
Net revenue	707.5	733.8
Staff costs	-194.8	-193.6
Other operating expenses	-125.1	-125.9
Operating costs	-319.9	-319.5
Net income from strategic investments	11.9	1.4
Earnings before interest, tax, depreciation and amortization (EBITDA)	399.5	415.7
Depreciation, amortization and impairment losses	-62.8	-53.9
Earnings before interest and tax (EBIT)	336.7	361.8
Financial result	-15.8	-16.8
Earnings before tax (EBT)	320.9	345.0
Income tax expense and other tax	-85.1	-89.9
Net profit for the period	235.8	255.1
thereof attributable to Deutsche Börse shareholders	227.1	248.6
thereof attributable to non-controlling interests	8.7	6.5
Earnings per share (basic) (€)	1.24	1.35

Deutsche Börse Group | 29 October 2020 | 15

Income statement - group level adjusted

(in €m)	Quarter ended	Quarter ended
30 Sep 2020	30 Sep 2019
Sales revenue	773.5	766.6
Net interest income from banking business	37.5	60.6
Other operating income	2.6	3.3
Total revenue	813.6	830.5
Volume-related costs	-106.1	-96.7
Net revenue	707.5	733.8
Staff costs	-189.9	-178.4
Other operating expenses	-98.1	-95.1
Operating costs	-288.0	-273.5
Net income from strategic investments	11.9	1.4
Earnings before interest, tax, depreciation and amortization (EBITDA)	431.4	461.7
Depreciation, amortization and impairment losses	-62.3	-53.6
Earnings before interest and tax (EBIT)	369.1	408.1
Financial result	-15.8	-16.8
Earnings before tax (EBT)	353.3	391.3
Income tax expense and other tax	-91.9	-101.9
Net profit for the period	261.4	289.4
thereof attributable to Deutsche Börse shareholders	252.7	282.9
thereof attributable to non-controlling interests	8.7	6.5
Earnings per share (basic) (€)	1.38	1.54

Deutsche Börse Group | 29 October 2020 | 16

Income statement - segmental level I/II

	Eurex		EEX		360T		Xetra
	(financial derivatives)		(commodities)		(foreign exchange)		(cash equities)
(in €m)	Q3/20	Q3/19	Q3/20	Q3/19	Q3/20	Q3/19	Q3/20	Q3/19
Net revenue	231.8		255.9	66.2	70.4	24.2		24.4	85.5	81.3
Staff costs adj.	-48.0		-45.4	-21.0	-20.1	-8.8		-9.1	-22.1	-22.4
Other operating expenses adj.	-34.4		-29.2	-12.8	-13.6	-3.4		-3.7	-11.1	-10.5
Operating costs adj.	-82.4		-74.6	-33.8	-33.7	-12.2		-12.8	-33.2	-32.9
Operating costs reported	-87.5		-81.0	-38.5	-37.9	-12.8		-12.2	-35.5	-37.3
Result from equity investments	-0.8		1.2	0.0	0.0	0.0		0.0	13.0	0.8
EBITDA adj.	148.6		182.5	32.4	36.7	12.0		11.6	65.3	49.2

Deutsche Börse Group | 29 October 2020 | 17

Income statement - segmental level II/II

	Clearstream		IFS		Qontigo
	(post-trading)		(investment fund services)		(index and analytics business)
(in €m)	Q3/20	Q3/19	Q3/20	Q3/19	Q3/20	Q3/19
Net revenue	191.2	208.4	54.5		48.0	54.1		45.4
Staff costs adj.	-54.3	-53.6	-15.4		-17.6	-20.3		-10.2
Other operating expenses adj.	-23.0	-25.9	-6.9		-6.4	-6.5		-5.8
Operating costs adj.	-77.3	-79.5	-22.3		-24.0	-26.8		-16.0
Operating costs reported	-86.0	-85.5	-32.1		-28.3	-27.5		-37.3
Result from equity investments	-0.3	-0.6	0.0		0.0	0.0		0.0
EBITDA adj.	113.6	128.3	32.2		24.0	27.3		29.4

Deutsche Börse Group | 29 October 2020 | 18

Financial calendar and contact details

Financial calendar

09 Nov 2020	UBS European Virtual Conference 2020 (virtual/ London)
11 Nov 2020
17 Nov 2020	Deutsches Eigenkapitalforum 2020 (virtual/ Frankfurt)
18 Nov 2020	Investor Day 2020 (Frankfurt & virtual)
23 Nov 2020	DZ Bank Equity Conference 2020 (virtual/ Frankfurt)
30 Nov 2020	Berenberg European Conference (virtual/ London)
01 Dec 2020	Redburn CEO Conference (virtual/ London)
07 Dec 2020	Virtual Group Meeting for US investors organised by HSBC
08 Dec 2020

Deutsche Börse AG

Investor Relations

Mergenthalerallee 61

65760 Eschborn

Germany

Phone: [phone]

Fax: [phone]

E−Mail: [e-mail]

www.deutsche-boerse.com/ir_e

Deutsche Börse Group | 29 October 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.