GBV-Kolloquium "IT in Banken und Börsen" - WS 02/03. Trading, listing, membership network. Clearinghouse/Central counterparty (CCP) EurexClearinghouse

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1 Deutsche Börse Kolloquiumstag der Univesität Gießen December 6, 22 Deutsche Börse - the Markets Company Deutsche Börse Trading, listing, membership network Cash market Derivatives market Other markets Market information Information Products Clearinghouse/Central counterparty (CCP) EurexClearinghouse Market infrastructure and technology IT DAX Settlement and custody 2

2 Post Clearstream integration: the new group Revenue contribution Q3 22 Products Key business drivers Cash market Derivatives market IT IP 8% 7% 9% 11% Custody 15% Settlement Net Interest 23% 27% Cash markets Derivatives markets IT development, insourcing of IT activity Data distribution to end investors, indices Processing of ownership changes Safekeeping & related services Liquidity for Eurobond settlement Trading activity: # of trades, total turnover volume 7% Xetra system, 3% floor income Number of contracts, product mix Product innovation, OTC market Orders for front-and back office solution development (entory) New insourcing contracts Data packages sold through Reuters and Bloomberg Usage of indices (licensing) Activity in on and off exchange cash trading: shares, bonds and Eurobonds Issuance activity Eurobonds, int. bonds, German bonds, int. shares, German shares Issuer services Overnight interest rates, net cash balance Issuance activity 3 Creating and leveraging core competencies Deutsche Börse "The Markets Company" Xetra Eurex CCP Settlement Information Products xlaunch Systems Creating and leveraging... growing core markets... leading technology... largest global network... strong brands value creation across divisions to ensure Speed Reliability Scalability Transparency Liquidity Independence World-wide access Lowest costs 4

3 Deutsche Börse strategic positioning: combining economies of scale and scope to provide tailored customer solutions Economies of scope Economies of scale Core functions Load Operate Process chain Build Back office Settlement Clearing Trading Front office Sell technology Insource load Core formats Provide full service Value added intensity 5 Deutsche Börse s core asset: a network linking 19 countries 65 members in 19 countries International trading activity driving Deutsche Börse s markets growth 25 2 Eurex: contracts traded by London members vs Liffetotal turnover (million contracts) Eurex Liffe Xetra/Eurex Xetra: Percentage of foreign trading volume Members outside Germany Access points 15 Location of business unit Tokyo Hong Kong

4 Generating economies of scale: Deutsche Börse operates 19 exchanges worldwide Exchange market production start members countries growth potential Irish Stock Exchange / LPX derivatives Jan spot Jun spot Nov derivatives Sep (market segment) spot Nov spot Jun 15 2 spot/derivatives Aug /Mar derivatives Aug 86 5 spot Oct 18 5 spot Nov 25 3 * inclusive 8 German floor trading exchanges ** market segment of Eurex 7 Driving cost down: growth in volumes reduces unit costs on electronic trading platforms enhancing margins Eurex Xetra 3 1% 12 1% % 54% 7% 8 44% 46% 35% 4 3% * * 21 Contracts per day, in millions Costs per contract 1, Transactions per day Costs per trade * Despite additional costs that arose from an extension of trading hours beginning June 2 8

5 while Deutsche Börse maintains price leadership Price including settlement fees, Small firm 1 Order size, LSE/Crest 3 1,5 25, 1, 1,5, Xetra Large firm 2 LSE/Crest Xetra Average order size 1 1, orders p.a.; proprietary trading in domestic equities only 2 3,, orders p.a.; proprietary trading in domestic equities only 3 Mix of aggressor and originator trades taking into consideration auctions; partial executions considered 9 Deutsche Börse: largest exchange operations, well diversified business model Sales by segment (as % of 22e sales) Group sales comparison (IBIS consensus) DBAG DBAG LSE LSE Cash Derivatives Info Prod. IT Clearing Settlement Custody Other

6 Drivers of future growth Growth Macro drivers Fundamental growth Underdeveloped equity culture Pension reform Sector orientation of European funds Top line growth Micro drivers Extending member base New products Extending services econ s of scope Efficiency gains Leveraging existing assets Perfecting the business model Creating P&L flexibility Expansion of core business Clearstream Eurex Repo xlaunch/ Basis 1 JV a/c/e alliance with CBoT External growth Acquisitions in IP business Upstream/ downstream acquisitions entory Computershare JV Growth dimensions 11 Material changes in shareholder structure Increasing proportion of institutional investors in UK and U.S. Strategic 51% Q4 21 US Inst. 13% UK Inst. 12% German Inst. 15% Private 2% Strategic 22% Intern. Inst. 8% Q4 22 US Inst. 21% UK Inst. 22% Private 2% Intern. Inst. 7% Free float (MSCI definition) increases to 95 % Three material strategic holders remain: Commerzbank (in holding company) 4.3% Düsseldorf Stock Exchange 2.9 % Hypovereinsbank 2.2 % German Inst. 25% 12