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.
- Including net revenue from connectivity and member fees.
- Including NII and securities collateral fee.
- 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.
- Including net revenue from connectivity.
- 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: +49 69 211 11670
Fax: +49 69 211 14608
E−Mail: ir@deutsche-boerse.com
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
- 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.
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Deutsche Börse AG published this content on 28 October 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 October 2020 18:14:02 UTC