Deutsche Börse (DB1) CMD 2025 summary

Strategic direction and growth outlook

• Targets 8% annual net revenue growth (excluding treasury results) through 2028, driven by secular trends, technology, and buy-side expansion, with a diversified business model and refined capital allocation principles.

• Commits to 3% annual cost growth, enabling margin expansion and 12% EBITDA growth, with a focus on operational scalability, technology leverage, and the 'OneGroup' operating model.

• Pursues a balanced approach of organic growth and disciplined M&A, with the proposed Allfunds acquisition positioned as a strategic fit to expand fund services and pan-European reach.

• Emphasizes leadership in digital transformation, AI, and cloud adoption, with over 74% of infrastructure in the cloud and a dedicated Chief Digital Transformation Officer.

• Maintains a strong capital allocation policy, prioritizing organic growth, regular share buybacks, a 30-40% dividend payout ratio, and a €500 million buyback in 2026.

Business segment performance and growth drivers

• Investment Management Solutions targets 8% CAGR to 2028, driven by SaaS transformation, margin expansion, and strong US momentum, with SimCorp and ISS STOXX as core platforms.

• Trading & Clearing delivered 7% CAGR since 2022 and targets 8% CAGR to 2028, leveraging secular trends in fixed income, commodities, FX, and digital assets, with technology and product innovation as key enablers.

• Fund Services aims for 11% CAGR to 2028, focusing on outsourcing, ETF growth, digital transfer agency, and asset class expansion, including alternatives and tokenized funds.

• Securities Services achieved 9% CAGR and projects 8% growth to 2028, capitalizing on digitization, pan-European infrastructure, and institutional crypto custody, with a roadmap to become the first fully digital CSD.

• Digital assets and tokenization are central to future strategy, with the D7 platform, partnerships (e.g., Kraken, Circle), and readiness for digital euro and stablecoins.

Financial guidance and capital management

• Delivers on Horizon 2026 targets, with 11% top-line and 12% EBITDA growth, expanding margins to 60%, and targets 8% top-line and 3% cost growth through 2028, resulting in 12% EBITDA CAGR and margin expansion to 62%.

• Maintains a €600 million annual organic investment budget, supporting technology, digital, and product innovation across all segments.

• Ensures robust cash generation and prudent capital management, enabling continued investments, M&A, dividends, and regular share buybacks.

• Fading interest rate headwinds post-2026 will improve overall growth, with net interest income stabilizing as a recurring contributor.

• The proposed Allfunds acquisition is structured for immediate EPS accretion, return on capital above WACC within 3-5 years, and maintenance of a strong credit rating.