Analyst and Investor Conference Call Q4 and FY February 2012

Transcription

1 Analyst and Investor Conference Call Q4 and FY 14 February 2012

2 Excellent Financial Performance In Sales revenue ( m) Total costs ( m) 1 Net income ( m) 1 2,106 +6% 2,233 1,147-1% 1, % 833 Proposed shareholder distribution Regular dividend of 2.30 per share Special dividend of 1.00 per share Share buybacks of up to 200 million in H2/2012 1) Adjusted for ISE impairment (), costs for efficiency measures (, ), merger related costs () and the gain from the revaluation of the share component of the transaction with SIX Group to fully acquire Eurex () 1

3 FY/ Sales And Earnings Growth Reflect Scalability Of Model Sales revenue Net interest income Costs 1 EBIT 1 Net income 1 Earnings per share 1 m +6% +26% -1% +13% +15% +16% 2, ,147 1,134 1, , , ) Adjusted for ISE impairment (: 453.3m), costs for efficiency measures (: 110.7m, : 1.3m), merger related costs (: 82.2m) and the revaluation of the share component of the transaction with SIX Group to fully acquire Eurex (: 77.4m) 2

4 FY/ Growth Across All Segments Of The Group Deutsche Börse Group: Sales revenue +6% / EBIT + 13% m Xetra Eurex Clearstream Market Data & Analytics Sales +5% Sales +10% Sales +4% 1 Sales +5% EBIT +18% EBIT +18% EBIT +8% EBIT +6% Sales revenue EBIT ) Sales revenue and net interest income from banking business 2) Adjusted for ISE impairment (), costs for efficiency measures (, ) and merger related costs () 3

5 Q4/ Sales Revenue And Earnings Growth Sales revenue and EBIT 1 ( m) Revenue Sales revenue: 541.4m (+4% y-o-y) Net interest income: 19.3m (+14% y-o-y) Other operating income: 16.5m (+35% y-o-y) Costs Total costs: 339.0m - Thereof: 67.1m volume related and 271.9m operating - Total costs (adjusted) 1 : 310.8m ( 5% y-o-y) Earnings EBIT: 228.0m - EBIT (adjusted) 1 : 256.2m (+16% y-o-y) Net income: 141.9m - Net income (adjusted) 1 : 165.1m (+8% y-o-y) EPS: EPS (adjusted) 1 : 0.91 (+11% y-o-y) Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Sales revenue EBIT 1 Exchange rate EURUSD: Q1/11: , Q2/11: , Q3/ , Q4/11: ) Adjusted for ISE impairment (), costs for efficiency programs (, ), merger related costs () and the revaluation of the share component of the transaction with SIX Group to fully acquire Eurex () 4

6 Xetra 5% Sales Revenue And 18% EBIT Growth In Business activity Cash market sales revenue ( m) Change vs. Q4/11 Q3/11 Q4/ Xetra electronic trading Trades 59.7m -21% 23% Order book volume bn -29% 3% Floor Order book volume bn -28% -35% Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Others Connectivity Floor CCP Xetra 1) Single-counted 5

7 Eurex 10% Sales Revenue And 18% EBIT Growth In Business activity (traded contracts in million) Eurex sales revenue ( m) Change vs. Q4/11 Q3/11 Q4/10 Index % 27% Fixed Income % -10% Single Equity % -14% US Options % 0% Total % 4% 1) The total shown does not equal the sum of the individual figures as it includes other traded derivatives such as ETF, dividend, volatility, agricultural, precious metals and emission derivatives Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Others US Options Equity Fixed income Index 6

8 Clearstream 4% Revenue And 8% EBIT Growth In Business activity Clearstream revenue ( m) Change vs. Q4/11 Q3/11 Q4/10 Assets under custody 10.9tr -1% -3% International 5.9tr 0% 0% Domestic 5.0tr -2% -5% Settlement transactions 28.7m -15% -9% International 8.6m -9% -14% Domestic 20.0m -17% -6% GSF outstandings 653.1bn 5% 18% Cash balances bn +11% +66% 1) Contains 4.8 billion currently restricted by relevant EU and US sanction programs Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Net interest income Others GSF Settlement Custody 7

9 Market Data & Analytics 5% Sales Revenue And 6% EBIT Growth In Sales revenue and EBIT ( m) Development of business activity Less volatile revenue drivers compared to the trading businesses of Deutsche Börse: Number of data packages, number of issuers & underlyings, assets under management and content subscriptions Main initiatives Globalization of STOXX index and benchmarking business through 2009 buyout of Dow Jones Expansion of buy side offering: Establish benchmark suite, introduce global data offering, get foothold in asset allocation process Enrich trading signal offering: Further rollout of algo news feeds (macro data, corporate news), enrichment of Xetra/Eurex data with real-time analytics Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Sales revenue EBIT 1 1) Adjusted for costs for efficiency programs and merger related costs (Q4/: 0.3m, Q1/: 0.5m, Q2/: 2.1m, Q3/: 1.6m, Q4/: - 0.5m) 8

10 Existing Growth Strategy To Be Accelerated Acceleration of growth strategy Extend products and services to unregulated/unsecured markets Expand Eurex clearing/risk management capabilities into new markets and asset classes Global roll out of collateral and liquidity management services at Clearstream Expand technological leadership Foster product, process and system innovation (e.g. one platform IT strategy) Combine market data and IT in one segment to capitalize on growth opportunities Increase reach in new customer groups and growth regions Expand customer reach and explore new collaboration formats Prioritize partnerships over M&A in line with regulatory sentiment Effective cost management Commitment to capital management Cost discipline remains key priority Further efficiency gains targeted Maintain strong credit rating profile Continue attractive capital management policy 9

11 Growth Expenditures For Growth And Infrastructure Increased Expenditures for growth ( m) + 40 million Xetra MD&A 1 Extend products and services to unregulated and unsecured markets Launch clearing for OTC derivatives in light of changing market and regulatory requirements in line with EMIR implementation schedule Enhance risk management model to allow for cross margining within portfolios (2012) Global roll-out of collateral management insourcing services (CETIP, Australia & South Africa 2012) Clearstream 2 Expand technological leadership Introduce next generation trading platform for Eurex (2012) and Xetra (2014) based on one platform IT strategy Build new clearing architecture to further improve risk management capabilities Combine market data and IT into one business segment to capitalize on growth opportunities and client s outsourcing needs Eurex 3 Increase reach in new customer groups and growth regions Increase Asian revenue contribution at Clearstream from ~20 percent to ~30 percent by 2016 Further expand customer network of Eurex into Asia and Xetra into Eastern Europe Target buy-side customers with next phase of client asset protection services (2012) 10

12 Growth Positive Outlook Underpinned By Full Control Over Eurex Development of sales revenue ( m) 2,185 2,455 2,062 2,106 2, % ~2,500-2,350 Drivers for sales revenue growth are: Full acquisition of Eurex (15 percent economic interest of SIX Group; transaction expected to be completed in Q2/2012; economics apply retroactively as of January 2012) Consolidation of European Energy Exchange AG planned for 1 July 2012 Development of underlying business activities and contribution from new products/initiatives (increased investments in growth) E 11

13 Operating Efficiency Cost Management Remains Key Priority Development of total cost base ( m) 1 1,248 1,256 1, ,147 1, , For 2012 Deutsche Börse plans with costs of around 1,200 million 2 Cost guidance for 2012 reflects: Consolidation effects (EEX) Higher volume related costs Inflation expectations 1, Increased investments in growth and infrastructure to be offset through further cost efficiencies (e.g. incremental Excellence savings in 2012) E Volume related costs Operating costs 1) Adjusted for ISE impairment (), costs for efficiency measures (2007-) and merger related costs () 2) Excluding merger related costs and costs for efficiency measures (~ 30 million in 2012) 12

14 Operating Efficiency For 2012 Deutsche Börse Targets Total Costs Of Around 1,200 Million Excluding Merger Related Costs Transition from costs to 2012 cost guidance ( m) 1, Volume related costs ~1,200 ~270 Volume related costs Cost guidance 2012 For 2012 Deutsche Börse plans with costs of around 1,200 million, excluding merger related costs and costs for efficiency measures (~ 30 million) Transition to 2012 Increase of volume related costs: + 25 million 890 Operating costs ~930 Operating costs Full consolidation of EEX planned for 1 July 2012: + 25 million Inflation applied to staff costs and other expense items: + 15 million Increased investments in growth and infrastructure: + 40 million A Volume related costs Consolidation effects Inflation Investments Cost reductions 2012E Cost reductions: - 40 million (of which 20 million -12 efficiency measures and 20 million additional cost savings) 13

15 Operating Efficiency Effective Group Tax Rate Reduced By Around 10 Percentage Points Within 5 Years Tax guidance (effective Group tax rate) 2007 Effective Group tax rate 35.6% % 28.5% 26.9% 26.9% 26.0% ~26% 2008 Effective Group tax rate 28.5%, includes the following effects: - German tax reform - ISE acquisition - Relocation of ~50% of Frankfurt based staff to Eschborn in June Effective Group tax rate 26.9% due to ~50% of Frankfurt-based staff located in Eschborn Tax rate of around 26%, reflecting all Frankfurt based staff now located in Eschborn E 1) Adjusted for non-taxable book gain from sale of Clearstream headquarters ( 120 million) 2) Adjusted for ISE impairment and costs for efficiency programs 3) Adjusted for 20 million interest on expected tax payments 14

16 Capital Management Strong Cash Flow Generation Allows For Strong Rating Profile And Attractive Distribution Policy Capital Management Policy Total shareholder distributions ( m) Continuing past practice, Deutsche Börse distributes funds not required for the Group s operating business and further development to its shareholders The capital management policy foresees a dividend payout ratio of 40 to 60 percent complemented by share buybacks Both distribution components are subject to capital requirements, investment needs and general liquidity considerations Due to its considerable clearing and posttrading business activity, Deutsche Börse is focused on maintaining a strong credit and rating profile, including Clearstream Banking S.A. s strong AA credit rating up to 200 ~190 ~ E Share buybacks Dividend Share buybacks in H2/2012 Special dividend: 1.00 per share Regular dividend: 2.30 per share 15

17 Appendix 16

18 Income Statement Group Level Quarter ended 31 December Quarter ended 31 December Fiscal year Sales revenue , ,106.3 Net interest income from banking business Other operating income Total revenue , ,226.7 Fiscal year Volume-related costs Total revenue less volume-related costs , ,015.8 Staff costs Depreciation, amortization and impairment losses Other operating expenses Operating costs ,500.2 Result from equity investments Earnings before interest and tax (EBIT) , Financial income Financial expense Earnings before tax (EBT) , Income tax expense Net profit for the period thereof shareholders of parent company (net income for the period) thereof non-controlling interests Earnings per share (basic) ( ) ) Including costs for efficiency programs (Q4/: 0.5m, Q4/: -12.0m; FY/: 1.3m, FY/: 110.7m), ISE impairment (Q4/, FY/: 453.3m), merger related costs (Q4/: 27.7m, : 82.2m) and the revaluation of the share component of the transaction with SIX Group to fully acquire Eurex (Q4/: 16.5m, FY/: 77.4m) 17

19 Income Statement Segmental Level Xetra Eurex Clearstream Market Data & Analytics Q4/ Q4/ Q4/ Q4/ Q4/ Q4/ Q4/ Q4/ Sales revenue Internal sales Net interest income from banking business Other operating income Total revenue Volume-related costs Total revenue less volume-related costs Staff costs Depreciation, amortization and impairment losses Other operating expenses Operating costs Thereof costs for efficiency measures and merger related costs Result from equity investments Earnings before interest and tax (EBIT)