Deutsche Börse (DB1) CMD 2025 summary

Strategic Vision and Growth Outlook

• Targets 8% organic net revenue CAGR through 2028, driven by secular trends, technology, and buy-side expansion, with 3% cost growth enabling margin expansion and 12% EBITDA CAGR.

• Maintains commitment to Horizon 2026 targets, aiming for €6.4bn net revenues and a more balanced business mix, supported by a diversified model and refined capital allocation.

• Focuses on four pillars: organic growth, transformational leadership in Europe and asset classes, disciplined M&A, and refined capital allocation.

• Emphasizes technology leadership, with over 74% of infrastructure in the cloud and aggressive AI adoption.

• Operating model 'OneGroup' enhances scalability, qualitative improvements, and group-wide technology leadership.

Business Segment Developments

• Investment Management Solutions (IMS) and SimCorp drive buy-side penetration, SaaS transition, and ARR growth of 16%+, targeting 8% pro-forma CAGR to 2028 with strong US momentum.

• Trading & Clearing expects 8% CAGR, leveraging buy-side acceleration, technology, and new asset classes including digital assets, ETFs, and innovation in fixed income, commodities, and FX.

• Fund Services projects 11% CAGR to 2028, fueled by outsourcing, ETF growth, digital transfer agency, and alternatives, with the proposed Allfunds acquisition to create a €1bn+ business.

• Securities Services grows 8% CAGR, benefiting from EU debt surge, retail flows, digital/tokenized securities leadership, and a roadmap to become the first fully digital CSD.

• All segments contribute to growth, with balanced exposure across IMS, Trading & Clearing, Fund Services, and Securities Services.

Financial Guidance and Capital Allocation

• Delivers 11% net revenue and 12% EBITDA growth since Horizon 2026 launch, with EBITDA margin rising to ~62% by 2028.

• Plans €600m annual organic investment, with disciplined M&A, regular share buybacks (e.g., €500m in 2026), and a 30-40% dividend payout ratio.

• Treasury results expected to stabilize at €700m, with cost containment and operational leverage from the OneGroup model.

• Capital allocation policy refined to balance organic growth, M&A, dividends, and buybacks, maintaining strong cash generation and rating.

• The proposed Allfunds acquisition is structured to be immediately EPS accretive and maintain a strong credit rating.