Deutsche Börse (OTCPK:DBOE.F) 2025 Capital Markets Day Transcript

Deutsche Börse Capital Markets Day Summary Company Overview - Company: Deutsche Börse Group - Event: 2025 Capital Markets Day - Date: December 10, 2025 Key Messages and Financial Outlook - Growth Commitment: Deutsche Börse is committed to achieving an 8% growth in net revenues, excluding treasury results, driven by structural trends and technology advancements [4][6] - Cost Management: The company anticipates a 3% growth in costs over the next few years, leading to a margin expansion of approximately 3 percentage points [5][6] - Revenue Target: The target for net revenues is set at EUR 6.4 billion for the upcoming year, with a focus on maintaining a balanced portfolio across four segments [13][15] - Cash Flow Generation: Strong cash flow generation is expected, with a commitment to share buybacks amounting to EUR 500 million in 2026 [6][7] Strategic Focus Areas - Market Transformation: Deutsche Börse aims to lead transformations in European capital markets and adapt to new asset class dynamics, including digital assets and alternatives [16][34] - Buy-Side Growth: The buy-side segment is projected to grow at 8%, with 36% of revenues currently derived from this sector. The company is positioned as a neutral infrastructure provider to address margin compression issues faced by asset managers [23][24] - Technological Advancements: The company has invested significantly in technology, with 74% of its capacity now in the cloud, enhancing its ability to leverage AI and improve operational efficiency [10][26] Industry Dynamics - European Market Trends: Despite challenges, there are structural growth opportunities in Europe, particularly in pension and retail investments, which are expected to drive demand for market infrastructure [31][32] - Asset Class Evolution: The emergence of new asset classes, including digital assets, presents opportunities for Deutsche Börse to expand its offerings and maintain relevance in a changing market landscape [34] Operational Insights - Global Footprint: Deutsche Börse has a significant global presence, with 16,000 employees, and is the largest infrastructure provider in many markets [10][11] - Client Engagement: The company emphasizes strong relationships with clients, boasting a high retention rate of over 92% across its businesses [52] M&A Strategy - M&A as a Growth Driver: M&A will complement organic growth strategies, with a disciplined approach to capital allocation ensuring that acquisitions are accretive and aligned with the company's growth objectives [36][41] Conclusion - Commitment to Transformation: Deutsche Börse is dedicated to leading market transformations while ensuring sustainable growth through strategic investments, cost management, and technological innovation [43][44]