Deutsche Börse Group
Annual report
2020
Annual report 2020
Contents
3
Executive and
Supervisory Board
171
Consolidated financial
statements/notes
3
5
6
8
Letter from the CEO
The Executive Board
The Supervisory Board
Report of the Supervisory Board
20
Combined
management report
21
32
52
53
74
105
109
112
118
152
Fundamental information about the Group
Report on economic position
Report on post-balance sheet date events
Combined non-financial statement
Risk report
Report on opportunities
Report on expected developments
Deutsche Börse AG
(disclosures based on the HGB)
Remuneration report
Corporate governance statement
172
173
174
176
178
179
188
204
252
277
278
Consolidated income statement
Consolidated statement of
comprehensive income
Consolidated balance sheet
Consolidated cash flow statement
Consolidated statement of changes
in equity
Basis of preparation
Notes on the consolidated income statement
Notes on the consolidated statement of
financial position
Other disclosures
Responsibility statement by the
Executive Board
Independent Auditor’s Report
287
288
289
Acknowledgements/contact/
registered trademarks
About this report
Financial calendar
Frankfurt/Main, 12 March 2021
Dear Shareholders,
Ladies and Gentlemen,
2020 was an extraordinary year. It was defined by the coronavirus pandemic, which put a great strain
on economies and companies around the world. In this difficult environment we at Deutsche Börse
Group fulfilled all our growth targets.
Deutsche Börse increased its net revenue by 9 per cent in 2020 compared with the previous year.
Structural growth came to 5 per cent as planned. Exactly as forecast, this resulted in a higher adjusted
net profit of €1.2 billion for the period. Our business model has thus proven its resilience once more.
This is also demonstrated by the completion of our growth strategy, Roadmap 2020. It was a complete
success in all three components of growth: growth in existing business; growth by acquisition; and
expanding new technologies. We promised a great deal. And we have kept all our promises.
In our existing business, we achieved a secular growth of 5 per cent as planned. We also increased
net profit for the period by an average of 12 per cent – in the middle of the announced range of 10 to
15 per cent.
We strengthened our business model by means of acquisitions. Just to mention the most important
ones: the analytics provider Axioma, which we merged with STOXX to form Qontigo; UBS Fondcenter;
and Institutional Shareholder Services (ISS), a leading US-based provider of governance solutions,
sustainability data and analytics, which is our biggest step to date.
In technological terms, we have also made progress: we gained Google and SAP as new cloud partners
in addition to Microsoft. And we advanced the cutting-edge blockchain technology, partly by means of
our investment in HQLAx.
Our employees all over the world made a decisive contribution to this success. They put in an excepti-
onal performance in the Covid-dominated year 2020, with 98 per cent of our workforce working from
home at times. And despite all the difficulties, they remained as dedicated and motivated as ever.
Some 900 new colleagues have joined us over this period, and together we are looking to the future
with confidence.
3
Executive and Supervisory Boards | Letter from the CEOManagement report Financial statementsNotesFurther informationDeutsche Börse Group | Annual report 2020 Where do we go from here? We are continuing the Roadmap: with Compass 2023. Our target of 5 per
cent structural growth is still the same. We no longer expect to have any cyclical support for that, and
so we are reinforcing our focus on acquisitions. For the first time, we are also defining a target here: an
average of 5 per cent annual inorganic growth until 2023. That is ambitious but realistic. I am looking
forward to more years of rapid growth ahead!
Growth nowadays always means sustainable growth, too. The transition towards a sustainable economy
is one of the most important tasks of our age. And we too consider it to be our responsibility. ESG is
part of our corporate culture and our Group strategy. Not only are we continuously expanding our own
sustainability reporting. We are also a member of the United Nations Global Compact and promote
the implementation of its principles in the areas of human rights, labour, the environment and anti-
corruption. Our indices and ratings help companies to become more sustainable and at the same time
support investors seeking to invest in these companies. This was also one reason for our takeover
of ISS, which plays a leading global role in sustainability ratings. Our own ESG product portfolio for
trading completes the picture and continues to grow.
We at Deutsche Börse have proved to be a pillar of stability in the Covid-dominated year 2020, a time
of great uncertainty and ensuing volatility. In the heat of the moment, there were some calls for radical
political intervention in market mechanisms, but we refuted them calmly and knowledgeably, and so
kept markets stable. That is our duty as a provider of market infrastructure. It also shows that policy-
makers acknowledge the importance of capital markets and our role in them. That is something we
appreciate, not least because we rely on political support to hold our ground in competition with the
USA and Asia.
Dear shareholders, last year was a real test of character for all of us. I therefore thank you all the more
for the trust that you have placed in us. In this context, I am particularly pleased that, for 2020, we
can again propose an increase in the dividend – to €3.00 per share from €2.90 the previous year.
This distribution leaves us enough scope to prepare the ground in 2021 for further growth by means
of investment, mergers and acquisitions – from which you will benefit, too. Please do come with us
on our journey – I am counting on you. Thank you!
Yours sincerely,
Theodor Weimer
Chief Executive Officer
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Executive and Supervisory Boards | Letter from the CEOManagement report Financial statementsNotesFurther informationDeutsche Börse Group | Annual report 2020 Executive and Supervisory Boards | The Executive Board
Management report
Financial statements
Notes
Further information
The Executive Board
Heike Eckert, *1968
Graduate degree in Economics
(Diplom-Volkswirtin)
Oberursel
Nationality: German
Member of the Executive Board,
Deutsche Börse AG,
responsible for HR (Director of
Labour Relations) & Compliance
Stephan Leithner, *1966
Dr. oec. HSG
Bad Soden am Taunus
Nationality: Austrian
Member of the Executive Board,
Deutsche Börse AG,
responsible for Pre- & Post-Trading
Gregor Pottmeyer, *1962
Graduate degree in
Business Administration
(Diplom-Kaufmann)
Bad Homburg v.d. Höhe
Nationality: German
Member of the Executive Board
and Chief Financial Officer,
Deutsche Börse AG
Theodor Weimer, *1959
Dr. rer. pol.
Wiesbaden
Nationality: German
Chief Executive Officer,
Deutsche Börse AG
Christoph Böhm, *1966
Dr.-Ing.
Hamburg
Nationality: German
Member of the Executive Board
and Chief Information Officer/
Chief Operating Officer,
Deutsche Börse AG
Thomas Book, *1971
Dr. rer. pol.
Kronberg im Taunus
Nationality: German
Member of the Executive Board,
Deutsche Börse AG,
responsible for Trading & Clearing
Former members of the
Executive Board
Hauke Stars, *1967
(until 30.06.2020)
Engineering degree in applied
computer science
(Diplom-Ingenieurin Informatik),
MSc by research in Engineering
Königstein im Taunus
Nationality: German
Member of the Executive Board,
Deutsche Börse AG,
responsible for Cash Market,
Pre-IPO & Growth Financing and
Human Resources/Director of
Labour Relations
As at 31 December 2020
(unless otherwise stated)
Detailed information about the members of the Executive Board and their appointments to super visory
bodies of other companies or comparable control bodies, as well as their CVs can be found on the
internet under:
www.deutsche-boerse.com/execboard
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Deutsche Börse Group | Annual report 2020 Executive and Supervisory Boards | The Supervisory Board
Management report
Financial statements
Notes
Further information
The Supervisory Board
Martin Jetter, *1959
Chairman
Senior Vice President &
Chairman IBM Europe,
Madrid, Spain
Nationality: German
Board member
since 24 May 2018
Jutta Stuhlfauth,1) *1961
Deputy Chairwoman
Lawyer, M.B.A. (Wales)
Staff member in the Group
Organisational Services
Deutsche Börse AG,
Frankfurt/Main
Nationality: German
Board member
since 16 May 2012
Nadine Absenger,1) *1975
Head of Legal and Legal Policy
ver.di federal administration,
Berlin
Nationality: German
Board member
since 16 May 2018
Markus Beck,1) *1964
In-House Legal Counsel
Senior Expert, staff member
in the Corporate &
Regulatory Legal
Deutsche Börse AG,
Frankfurt/Main
Nationality: German
Board member
since 15 August 2018
Karl-Heinz Flöther, *1952
Independent Management
Consultant, Kronberg im Taunus
Nationality: German
Board member
since 16 May 2012
1) Employee representative
Dr. Andreas Gottschling, *1967
Member of the Board of Directors
of Credit Suisse Group AG,
Zurich, Switzerland
Nationality: German
Board member
since 1 July 2020
Michael Rüdiger, *1964
Independent Management
Consultant, Utting am Ammersee
Nationality: German
Board member
since 19 May 2020
Susann Just-Marx,1) *1988
Head of Sales Clearing
European Energy
Exchange AG, Leipzig
Nationality: German
Board member
since 15 August 2018
Achim Karle,1) *1973
Staff member in the Equity &
Index Sales EMEA
Eurex Frankfurt AG, Frankfurt/Main
Nationality: German
Board member
since 28 August 2018
Cornelis Johannes
Nicolaas Kruijssen,1) *1963
Head of Service Desk &
Onsite Support
Deutsche Börse AG,
Frankfurt/Main
Nationality: Dutch
Board member
since 15 August 2018
Barbara Lambert, *1962
Independent Management
Consultant, La Rippe, Switzerland
Nationality: German, Swiss
Board member
since 16 May 2018
Carsten Schäfer,1) *1967
Expert, staff member in
Non-Financial Risk
Deutsche Börse AG,
Frankfurt/Main
Nationality: German
Board member
since 28 August 2018
Charles G.T. Stonehill, *1958
Green & Blue Advisors LLC,
Founding Partner, New York
Nationality: British, US-American
Board member
since 8 May 2020
Clara-Christina Streit, *1968
Independent Management
Consultant, Bielefeld
Nationality: German, US-American
Board member
since 8 May 2020
Gerd Tausendfreund,1) *1957
Trade union secretary in the
financial services department
ver.di Hesse region,
Frankfurt/Main
Nationality: German
Board member
since 16 May 2018
Amy Yip, *1951
Managing Partner
RAYS Capital Partners Limited,
Hong Kong
Nationality: Chinese (Hong Kong)
Board member
since 13 May 2015
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Deutsche Börse Group | Annual report 2020 Executive and Supervisory Boards | The Supervisory Board
Management report
Financial statements
Notes
Further information
Former members of the
Supervisory Board
Dr. Joachim Faber, *1950
Independent Management
Consultant, Grünwald
Nationality: German
Board member
until 19 May 2020
Joachim Nagel, *1966
Deputy Head of Banking
Department
Bank for International
Settlement (“BIS”)
Nationality: German
Board member
until 30 June 2020
As at 31 December 2020
(unless otherwise stated)
Detailed information about the members of the Supervisory Board, their additional appointments to
supervisory bodies of other companies or comparable control bodies, as well as their CVs can be found
on the internet under
www.deutsche-boerse.com/supervboard
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Deutsche Börse Group | Annual report 2020 Deutsche Börse Group | Annual report 2020
Deutsche Börse Group | Annual report 2020
Executive Board and Supervisory Board | Report of the Supervisory Board
Management report
Financial statements
Notes
Additional information
Report of the Supervisory Board
During the year under review, which was dominated by the global spread of COVID-19, Deutsche Börse
AG’s Supervisory Board discussed the company’s position and prospects in depth, performing the tasks
assigned to it by law and the company’s Articles of Association and bylaws. We regularly advised the
Executive Board on its management of the company, monitored its work and were involved in all
fundamental decisions.
In financial year 2020 we advised on the development of the Group strategy Compass 2023, which will
continue the Roadmap 2020 strategy from 2021. On this basis we also revised the remuneration system
for the members of the Executive Board of Deutsche Börse AG. The Supervisory Board was also regularly
involved in an advisory capacity in the majority acquisition of Institutional Shareholder Services Inc.
(ISS) by Deutsche Börse AG and Deutsche Börse Group’s other activities to buy and sell companies or
parts thereof. The Executive Board informed us on an ongoing basis about the impact of the COVID-19
pandemic on Deutsche Börse Group.
At our meetings, the Executive Board provided us with comprehensive and timely information in
accordance with the legal requirements. The high frequency of plenary and committee meetings and
workshops ensured an active exchange of information between the Supervisory Board and the Executive
Board. In addition, the CEO kept the Supervisory Board Chair continuously and regularly informed of the
current developments affecting the company’s business, significant transactions, upcoming decisions
and the long-term outlook and discussed these issues with him.
We held a total of eleven plenary meetings during 2020, including six extraordinary meetings. Four
Supervisory Board workshops took place on the subjects of technology (March and June), strategy
(April) and legal and compliance (September). All meetings and workshops were carried out as planned
despite the travel and social restrictions due to the COVID-19 pandemic, thanks to strict hygiene
measures.
The average attendance rate for all Supervisory Board members at the plenary and committee meetings
was 99 per cent during the year under review.
The Supervisory Board members’ detailed attendance record is as follows:
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Deutsche Börse Group | Annual report 2020
Executive Board and Supervisory Board | Report of the Supervisory Board
Management report
Financial statements
Notes
Additional information
Attendance of Supervisory Board members at meetings in 2020
Martin Jetter
(Chair since 19 May 2020)
Joachim Faber
(Member and Chair until 19 May 2020)
Jutta Stuhlfauth (Deputy Chair)
Nadine Absenger
Markus Beck
Karl-Heinz Flöther
Andreas Gottschling (since 01 Jul 2020)
Susann Just-Marx
Achim Karle
Cornelis Kruijssen
Barbara Lambert
Joachim Nagel (until 30 Jun 2020)
Michael Rüdiger (since 19 May 2020)
Carsten Schäfer
Charles Stonehill
Clara-Christina Streit
Gerd Tausendfreund
Amy Yip
Average attendance rate1)
Meetings
(Plenary and
committees)
Attendance
at plenary
meetings
Attendance
at committee
meetings
12/12
23
11
25
17
25
18
9
17
16
20
22
13
15
16
15
12
19
26
11/11
5/5
11/11
11/11
11/11
11/11
4/4
11/11
11/11
11/11
11/11
6/7
6/6
11/11
11/11
11/11
11/11
11/11
6/6
14/14
6/6
14/14
7/7
5/5
6/6
5/5
9/9
11/11
6/6
9/9
5/5
4/4
1/1
7/8
13/15
%
100
100
100
100
100
100
100
100
100
100
100
92
100
100
100
100
95
92
99
1) Attending workshops is optional for Supervisory Board members. Workshop attendance is therefore not taken into account in the determination of the average
attendance rate.
Topics addressed during plenary meetings of the Supervisory Board
In the reporting year we dealt intensively with the ongoing strategic direction of Deutsche Börse Group.
The Supervisory Board was involved at an early stage in developing the Group strategy Compass 2023.
It advised the Executive Board on all aspects of the strategy. In the reporting year this also included an
update to the strategy to reflect the impact of the COVID-19 pandemic. For details on the growth
strategy, please refer to the “Deutsche Börse Group’s objectives and strategies” section in the combined
management report.
We have revised the remuneration system for the Executive Board of Deutsche Börse AG. The structure
and key variables of performance measurement were realigned with Deutsche Börse Group’s clear focus
on profitable growth and the even greater importance of acquisitions and partnerships to achieve the
growth targets set by Compass 2023. We have designed a large part of variable Executive Board
remuneration to be long-term and dependent on achieving several sustainability targets relating to the
environment, social matters and governance, known as ESG criteria. The revised remuneration system
adopted by the Supervisory Board was developed in close cooperation with internal and external
stakeholders and will be presented to the Annual General Meeting for approval on 19 May 2021. Please
refer to the “Remuneration report” section for details.
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Deutsche Börse Group | Annual report 2020
Deutsche Börse Group | Annual report 2020
Executive Board and Supervisory Board | Report of the Supervisory Board
Management report
Financial statements
Notes
Additional information
In the reporting year we also looked closely at various external acquisitions and equity investments to
expand and strengthen our business. One focus was on the majority acquisition of Institutional
Shareholder Services Inc. (ISS), the main aim of which is to seize the global growth opportunities offered
by the trend towards sustainable investments. Furthermore, with the acquisition of Quantitative Brokers
we brought on board an innovative global fintech firm, and we completed the takeover of the fund
distribution business of UBS AG to expand the Investment Fund Services segment.
Another key area of the Supervisory Board’s work in the reporting year was the decisions taken on the
future composition of the Executive Board and the changes to the members of the Executive Board and
Supervisory Board.
At the beginning of the reporting year the Supervisory Board extended Theodor Weimer’s term of office
as Chair of Deutsche Börse AG’s Executive Board until 31 December 2024. The Supervisory Board
appointed Heike Eckert as of 1 July 2020 as an ordinary member of Deutsche Börse AG’s Executive
Board, where she is responsible for the newly formed division Human Ressources and Compliance. The
appointment of the two Executive Board members Thomas Book (Trading and Clearing) and Stephan
Leithner (Pre- and Post-trading) was extended by the Supervisory Board until 30 June 2026. At the end
of the reporting year the Supervisory Board also extended the appointment of Christoph Böhm
(CIO/COO) until 31 October 2026. By extending the appointments of the Executive Board Chair and
three Executive Board members in the reporting year, we have ensured the continuity of the board’s
composition. At the same time we were able to bring Heike Eckert, a long-standing manager at Deutsche
Börse Group, on to the Executive Board. Please refer to the “Personnel matters” section for details.
After the Annual General Meeting of Deutsche Börse AG on 19 May 2020, which had to take place for
the first time online due to the COVID-19 restrictions, Martin Jetter was elected Chair of the Supervisory
Board as planned. Michael Rüdiger was elected to Deutsche Börse AG’s Supervisory Board by the
Annual General Meeting and Andreas Gottschling was appointed by court order. Please refer to the
“Personnel matters” section for details.
In the year under review, the Supervisory Board again had regular and intensive discussions concerning
ongoing proceedings by the Public Prosecutor’s Office in Cologne regarding the conception and
settlement implementation of securities transactions by market participants over the dividend date
(cum/ex transactions). In the opinion of the Public Prosecutor’s Office, these market participants used
such transactions to make unjustified tax refund claims. These investigation proceedings also target
current and former employees of Deutsche Börse Group companies as well as executive board members
of subsidiaries of Deutsche Börse AG.
Another important subject for the Supervisory Board was the litigation and legal proceedings involving
Clearstream Banking S.A. in the USA and Luxembourg in connection with Iranian clients and assets.
In 2020 we also dealt with Deutsche Börse Group’s preparations for the United Kingdom to leave the
European Union (“Brexit”) and the related opportunities and risks. The efficiency, suitability and
effectiveness of the internal control system and the handling of findings by internal control functions and
external auditors and regulatory authorities were another important area of our work.
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Deutsche Börse Group | Annual report 2020
Deutsche Börse Group | Annual report 2020
Executive Board and Supervisory Board | Report of the Supervisory Board
Management report
Financial statements
Notes
Additional information
In addition, we prepared the change in the external auditors of Deutsche Börse AG due to take place in
2021, which is to be put to the vote at the Annual General Meeting 2021.
In the period between October and December the Supervisory Board Chair met virtually with institutional
investors and proxy advisers to discuss with them current governance topics relating to the Supervisory
Board. These conversations centred on the restructuring of the remuneration system for the Executive
Board on the basis of the new corporate strategy, personnel decisions concerning the Supervisory Board
and Executive Board and the Supervisory Board’s efficiency initiative carried out in the course of the
year. The Supervisory Board Chair summarised his dialogue with investors in the plenary meetings.
Our plenary meetings and workshops1 during the reporting period focused particularly on the following
issues:
In our ordinary meeting on 14 February 2020 we extended Theodor Weimer’s term of office as Chair of
Deutsche Börse AG’s Executive Board until 31 December 2024. We also addressed in detail the
preliminary results for the 2019 financial year and the dividend proposed by the Executive Board for that
year. Following a detailed examination we set the amount of the variable remuneration payable to the
Executive Board for the 2019 financial year. Furthermore, we adopted the combined corporate
governance statement and the corporate governance report 2019. The Executive Board informed us in
detail about the results of the staff survey carried out in late 2019 and the implementation status of the
HR strategy measures. We also discussed succession planning for the senior management. The
Executive Board informed us in a regular cycle about the status of cross-divisional client relationship
management. Finally we addressed the new requirements for monitoring related party transactions in
accordance with the Act to Implement the Second Shareholder Rights Directive (ARUG II).
In the Technology Workshop on 6 March 2020 we looked closely at the subjects of machine learning
and automation. This particularly focused on current use cases and initiatives at Deutsche Börse Group
that will continue to shape the workplace of the future in this respect.
In the ordinary meeting on 6 March 2020 we appointed Heike Eckert, a long-standing manager at
Deutsche Börse Group, to the Executive Board of Deutsche Börse AG with effect from 1 July 2020. We
dealt with the 2019 financial statements of Deutsche Börse AG and the 2019 consolidated financial
statements in the presence of the external auditors. We approved the 2019 financial statements and
consolidated financial statements, having carried out our own detailed examination, in line with the
recommendation of the Audit Committee. The Committee had previously examined the documents in
depth, in preparation for our meeting. We also adopted the report of the Supervisory Board for 2019, the
revised remuneration system for the Executive Board members from 2020 in accordance with section
87a Stock Corporation Act (AktG) and the agenda for the Annual General Meeting 2020. The Executive
Board informed us of the personnel situation in Deutsche Börse Group. The Executive Board also
reported on the current status of the investigation proceedings into securities transactions by market
participants over the dividend date (cum/ex transactions) and informed us in detail about the results of
the effectiveness analysis for the existing control mechanisms which had been carried out in this context.
In addition, the Executive Board informed us about the current status of litigation involving Clearstream
Banking S.A. in the USA and Luxembourg in connection with Iranian clients and assets. Finally, we
looked at the topic of sustainable finance and the Executive Board informed us about its concept for
steering sustainability performance across the company by means of an ESG dashboard.
1 See also the explanations on training and development measures for the members of the Supervisory Board in the corporate governance
statement.
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Deutsche Börse Group | Annual report 2020
Deutsche Börse Group | Annual report 2020
Executive Board and Supervisory Board | Report of the Supervisory Board
Management report
Financial statements
Notes
Additional information
In the extraordinary meeting on 24 March 2020 we held a separate meeting to address the ongoing
COVID-19 situation in depth and then decided by a subsequent circulation procedure to hold the Annual
General Meeting 2020 completely online.
In another extraordinary meeting on 29 April 2020 we approved the refinancing of a maturing hybrid
bond issued by Deutsche Börse AG. The Audit Committee had previously looked closely at this subject.
In the Strategy Workshop on 29 April 2020 we examined in detail and discussed the Group strategy
drawn up by the Executive Board for the next three years (“Compass 2023”). The Executive Board also
reported on the current and expected impact on Deutsche Börse Group of the COVID-19 pandemic,
including its effect on certain forms of securities trading. The Strategy Committee of the Supervisory
Board had previously discussed the Compass 2023 Group strategy in detail at its meeting on 5 March
2020.
In the ordinary meeting on 19 May 2020 we discussed with the Executive Board the upcoming Annual
General Meeting, which Joachim Faber, Supervisory Board member and long-standing Chair of Deutsche
Börse AG’s Supervisory Board, attended for the last time.
In the extraordinary meeting on 19 May 2020 we elected Martin Jetter as the new Chair of Deutsche
Börse AG’s Supervisory Board. We also welcomed Michael Rüdiger as a new member of Deutsche Börse
AG’s Supervisory Board and adopted changes to the members of the Supervisory Board committees.
In another Technology Workshop on 17 June 2020 we looked at current trends in cyber-security.
Available technical options were presented to support the work of the Supervisory Board during COVID-
19 and the related travel and social restrictions.
In the ordinary meeting on 18 June 2020 we elected Andreas Gottschling to succeed Joachim Nagel on
Deutsche Börse AG’s Supervisory Board and initiated his appointment by the competent district court.
We discussed in detail the succession planning for the Executive Board. Once again, we made extensive
enquiries about the status quo of the investigation proceedings relating to cum/ex transactions at
Deutsche Börse Group, discussing them with the Executive Board. We dealt with a revision of the
process for ad hoc announcements following a change in BaFin’s Issuer Guidelines. We took an early
look at the preparation of the remuneration report for 2020 in light of ARUG II requirements and the
feedback received on the remuneration system for the Executive Board of Deutsche Börse AG, which
was approved at the Annual General Meeting on 19 May 2020.
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Deutsche Börse Group | Annual report 2020
Deutsche Börse Group | Annual report 2020
Executive Board and Supervisory Board | Report of the Supervisory Board
Management report
Financial statements
Notes
Additional information
In the ordinary meeting on 17 September 2020 we confirmed the reappointment of Thomas Book and
Stephan Leithner and extended their contracts as Executive Board members until 30 June 2026. The
Executive Board informed us thoroughly about the potential acquisition of Institutional Shareholder
Services Inc. (ISS) and the upcoming disposal of Borsa Italiana S.p.A. from the perspective of Deutsche
Börse AG. We also discussed in detail the outline of a new remuneration system for Deutsche Börse AG’s
Executive Board in view of the new Group strategy Compass 2023, particularly evaluating different
implementation concepts and investor expectations. We again dealt with the status of investigation
proceedings into cum/ex transactions and the litigation involving Clearstream Banking S.A. in the USA
and Luxembourg. The Supervisory Board Chair informed us in depth about the current status of the
Supervisory Board’s efficiency initiative, which began in the second half of the year. The initiative is
intended to increase the time available to individual Supervisory Board members to strengthen their
advisory function for business and strategy-related topics. Finally we looked at the upcoming Supervisory
Board elections and after review confirmed the qualification requirements for the Supervisory Board.
In a Supervisory Board workshop on 17 September 2020 on legal and compliance topics we looked at
the main aspects of corporate liability, the management of conflicts of interest and aspects of the
prevention of market abuses.
In an extraordinary meeting on 28 October 2020 we approved the majority acquisition of Institutional
Shareholder Services Inc. (ISS) after a detailed review. The Executive Board also notified us of the
updates to the Compass 2023 strategy made in response to the COVID-19 pandemic. In addition, the
Executive Board reported on the current status of litigation involving Clearstream Banking S.A. in the
USA and Luxembourg.
In the ordinary meeting on 3 December 2020 we adopted the budget for 2021, reappointed Christoph
Böhm and extended his contract as an Executive Board member until 31 October 2026. The Executive
Board reported in detail about the results of the annual staff survey. It also informed us about the
implementation status of the personnel strategy and the revisions that had been made to the strategy to
reflect COVID-19. We gained an overview of the development of recently acquired companies and of the
equity investments in the context of Deutsche Börse Group’s corporate venturing activities. We again
dealt with the status of investigation proceedings into cum/ex transactions and the litigation involving
Clearstream Banking S.A. in the USA and Luxembourg in connection with Iranian clients and assets. We
discussed and adopted the results of our annual effectiveness review in accordance with section D.13 of
the German Corporate Governance Code (GCGC), the annual suitability assessment of the Supervisory
Board and the Executive Board, as well as the upcoming year’s training plan for the Supervisory Board.
Furthermore, we adopted the Declaration of Conformity pursuant to section 161 Aktiengesetz (AktG,
German Stock Corporation Act) for the 2020 financial year. The Declaration of Conformity can be
downloaded at www.deutsche-boerse.com/declcompliance. We adopted amendments to the bylaws for
the Executive Board and the Supervisory Board following the revision of the GCGC, the Supervisory
Board’s efficiency initiative and the Act to Implement the Second Shareholder Rights Directive (ARUG II).
In line with section D.11 GCGC the Chair of the Audit Committee notified the Supervisory Board of the
procedure for assessing the quality of the audit of the financial statements and its result.
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Executive Board and Supervisory Board | Report of the Supervisory Board
Management report
Financial statements
Notes
Additional information
At the extraordinary meeting on 16 December 2020, we primarily addressed issues regarding Executive
Board remuneration. We adopted a new remuneration system for the Executive Board of Deutsche Börse
AG to take effect on 1 January 2021, along with the revised service contracts for Executive Board
members to implement this new remuneration system, subject to approval by the Annual General
Meeting in 2021. The Supervisory Board Chair also reported in detail on his meetings with investors
and proxy advisers in the course of the annual Governance Roadshow. In addition we adopted the
targets for the Executive Board for 2021 and looked at the draft of the remuneration report for 2020.
In view of the COVID-19 pandemic the Supervisory Board meetings solely took place at the company’s
headquarters in the reporting year, using its existing video-conferencing technology. Martin Jetter, the
Supervisory Board Chair, presented the agenda before each meeting and informed the Supervisory Board
about current matters. At the end of each meeting the Supervisory Board members talked openly and
effectively among themselves, without the Executive Board members, about the meeting itself and
general topics.
Committee work
During the year under review, the Supervisory Board had seven committees at its disposal; and, for a
limited time only, another committee in the form of the Chairman Selection Committee. The Chairman
Selection Committee dealt with preparations for the new election of the Supervisory Board Chair after the
Annual General Meeting 2020 and was automatically dissolved once Martin Jetter had been elected as
the new Supervisory Board Chair on 19 May 2020. The committees are primarily responsible for
preparing the decisions to be taken by, and topics to be discussed in, the plenary meetings. Additionally,
the Supervisory Board has delegated individual decision-making powers to the committees, to the extent
that this is legally permissible. The individual committee chairs reported in detail to the plenary meetings
on the work performed by their committees. The Chair of the Supervisory Board chairs the Nomination
Committee, the Strategy Committee, the Steering Committee and the Mediation Committee. Details on
the members and duties of the Supervisory Board committees in 2020 can be found in the “Corporate
Governance Statement” section of the combined management report. The committees focused on the
following key issues:
14
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Deutsche Börse Group | Annual report 2020
Deutsche Börse Group | Annual report 2020
Executive Board and Supervisory Board | Report of the Supervisory Board
Management report
Financial statements
Notes
Additional information
Audit Committee (six meetings during the reporting period)
◼ Financial issues, especially capital management and tax items
◼ Financial reporting: examination, in the presence of the external auditors, of the annual financial
statements of Deutsche Börse AG and of the consolidated financial statements, of the combined
management report and the audit report, as well as of the half-yearly financial report and the quarterly
statements
◼ Statutory auditors: obtaining the statement of independence from the external auditors and monitoring
the external auditors’ independence; issuing the engagement letter to the external auditors; agreeing
the external auditors’ fee; defining the focal areas of the audit; discussing non-audit services rendered
by the external auditors and the assignment of the external auditors to conduct an audit of the
combined non-financial statement
◼ Preparations for the change of external auditors as of financial year 2021
◼ Internal control systems: discussion of questions relating to risk management, compliance and capital
market compliance, the internal control and audit system; discussion of the methods and systems used
and their efficiency, adequacy and effectiveness
◼ Deutsche Börse AG’s dividend and the Group’s budget
◼ Discussion and formal adoption of the Audit Committee’s tasks for the coming year
◼ Preparation of the Supervisory Board’s resolution on the corporate governance and remuneration
reports as well as on the corporate governance statement in accordance with section 289f of the
Handelsgesetzbuch (HGB, German Commercial Code) and the declaration of conformity in accordance
with section 161 of the AktG
◼ Measures to close internal and external audit findings
◼ Management of outsourcing and control frameworks for intellectual property
◼ Management of regulatory changes
◼ Investigation proceedings relating to cum/ex transactions
◼ Report on specific compliance audits
◼ CFO Roadmap to support the Group strategy Compass 2023
Nomination Committee (twelve meetings during the reporting period)
◼ Executive Board remuneration: discussion of the extent to which the members of the Executive Board
had achieved their targets; determination of the variable remuneration for Executive Board members for
2019; preliminary discussion of the extent to which individual members of the Executive Board have
achieved their targets for 2020; preparation of the adoption of the individual targets for the members of
the Executive Board for 2021; discussion of the remuneration report and the redesign of the
remuneration report for 2020
◼ Personnel matters: discussion of succession planning for the Executive Board and subordinate
management levels; preparation of a recommendation to the plenary meeting on appointing
Heike Eckert to Deutsche Börse AG’s Executive Board; preparation of a recommendation to the plenary
meeting to reappoint Thomas Book, Stephan Leithner and Christoph Böhm; discussion of external
Supervisory Board mandates held by Theodor Weimer and Hauke Stars
◼ Review and preparation of a recommendation to the plenary meeting to revise the Executive Board
remuneration system and Executive Board service contracts; review of the appropriateness of Executive
Board remuneration, and of members’ pensionable income
◼ Preparations for the election of the shareholder representatives to the Supervisory Board by the
ordinary Annual General Meeting 2020; search and pre-selection by shareholder representative of a
successor to Joachim Faber (as Supervisory Board member); for the Supervisory Board Chair see
Chairman Selection Committee); preparation of new elections to the Supervisory Board or the court
appointment of a Supervisory Board member
◼ Dealing with the suitability assessment, effectiveness review and training schedule
◼ Discussion of the results of the annual staff survey
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Deutsche Börse Group | Annual report 2020
Deutsche Börse Group | Annual report 2020
Executive Board and Supervisory Board | Report of the Supervisory Board
Management report
Financial statements
Notes
Additional information
◼ Report on the Governance Roadshow by the Supervisory Board Chair, also on investor expectations of
a new remuneration system for the Executive Board
Risk Committee (five meetings during the reporting period, including one joint meeting with the
Technology Committee)
◼ Discussion about the quarterly compliance and risk management reports
◼ Ongoing enhancements to Group-wide compliance and risk management and the harmonisation of
internal control systems
◼ Deutsche Börse Group’s risk strategy and risk culture
◼ Operational risk, information security and business continuity management
◼ Risk management in Eurex and Clearstream subgroups
◼ Impact of potential Brexit scenarios
◼ Implemenation of new regulatory requirements
◼ Integration within the scope of company acquisitions
◼ Know-your-customer processes at the Clearstream and Eurex subgroups
◼ Discussion of open audit findings and plan of action to address them
◼ Determining the risk appetite of Deutsche Börse Group for 2021
◼ Discussion of the CRO Roadmap and the related plan of action
◼ Discussion of the CSDR-compliant Eurex buy-in agent service
◼ Deutsche Börse Group’s recovery and resolution plans
◼ Discussion of topics relating to tax risk
Strategy Committee (one meeting during the reporting period)
◼ Discussion of the medium-term growth strategy of Deutsche Börse Group (Compass 2023)
Technology Committee (four meetings during the reporting period, including one joint meeting with
the Risk Committee)
◼ Ongoing development of Deutsche Börse Group’s IT strategy and implementation of a holistic
technology transformation
◼ Discussion of big data initiatives and the use of artificial intelligence
◼ Discussion of cloud computing, cloud partners and security strategies
◼ The digital workplace under COVID-19
◼ Discussion of data security, the Cloud Act and the data centre strategy
◼ Information security, IT risk management and cyber resilience
◼ Discussion of malfunctions in the T7 system and measures taken
◼ Introduction of the A7 analytics platform
◼ Discussion of post-merger integration of the UBS fund distribution platform Fondcenter AG
Chairman Selection Committee (all meetings held in 2019)
◼ Preparations for the new election of the Supervisory Board Chair after the Annual General Meeting
2020
Chairman’s Committee (no meeting during the reporting period)
The Chairman’s Committee convenes on the initiative of the Chair of the Supervisory Board; it deals with
time-sensitive affairs and prepares the corresponding Supervisory Board plenary meetings. There was no
need for the Chairman’s Committee to hold a meeting during the year under review.
16
9
Deutsche Börse Group | Annual report 2020
Deutsche Börse Group | Annual report 2020
Executive Board and Supervisory Board | Report of the Supervisory Board
Management report
Financial statements
Notes
Additional information
Mediation Committee (no meetings during the reporting period)
The Mediation Committee is set up by law. Pursuant to section 31(3) of the MitbestG, it submits
proposals to the Supervisory Board for the appointment or dismissal of Executive Board members when
a two-thirds majority has not been reached. The Mediation Committee only convenes as required. There
was no need for the Mediation Committee to hold a meeting during the year under review.
Audit of the annual and consolidated financial statements
KPMG AG Wirtschaftsprüfungsgesellschaft, domiciled in Berlin, (KPMG) audited the annual financial
statements of Deutsche Börse AG, the consolidated financial statements and the combined management
report, including the combined non-financial statement for the financial year ended 31 December 2020,
together with the accounting system, and issued an unqualified audit opinion. The condensed financial
statements and interim management report contained in the half-yearly financial report for the first six
months of 2020 were reviewed by KPMG. The documents relating to the financial statements and the
reports by KPMG were submitted to us for inspection and examination in good time. The lead auditors,
Klaus-Ulrich Pfeiffer and Sven-Olaf Leitz, attended the relevant meetings of the Audit Committee and the
plenary meeting of the Supervisory Board convened to approve the financial statements. The auditors
reported on the key results of the audit; in particular, they focused on the net assets, financial position
and results of operation of the company and the Group and were available to provide supplementary
information. The audit of compliance with all relevant statutory provisions and regulatory requirements
did not give rise to any objections. KPMG provided information on other services that it had rendered in
addition to its audit services. There were no grounds for suspecting that the auditors’ independence
might be impaired.
The Audit Committee discussed the financial statement documents and the reports by KPMG in detail
with the auditors and examined them carefully itself. It is satisfied that the reports meet the statutory
requirements under sections 317 and 321 of the HGB in particular. The committee reported to the
Supervisory Board on its examination and recommended that it approves the annual financial
statements and consolidated financial statements.
Our own examination – during a plenary meeting – of the 2020 annual financial statements,
consolidated financial statements and the combined management report, including the non-financial
statement, did not lead to any objections and we concurred with the results of the audit performed by
the auditors. We therefore approved the result of the audit. We approved the annual financial statements
prepared by the Executive Board and the consolidated financial statements at our meeting on 5 March
2021, in line with the Audit Committee’s recommendation. As a result, the annual financial statements
of Deutsche Börse AG have been adopted. The Audit Committee discussed the Executive Board’s
proposal for the appropriation of the unappropriated surplus (Bilanzgewinn) in detail with the Executive
Board. The discussion covered company’s liquidity, its financial planning and shareholders’ interests.
Following this discussion and its own examination, the Audit Committee concurred with the Executive
Board’s proposal for the use of appropriation of the unappropriated surplus. After examining this
ourselves, the plenary meeting of the Supervisory Board also approved the Executive Board’s proposal.
17
10
Deutsche Börse Group | Annual report 2020
Deutsche Börse Group | Annual report 2020
Executive Board and Supervisory Board | Report of the Supervisory Board
Management report
Financial statements
Notes
Additional information
Personnel matters
The following personnel changes were made to the Supervisory Board during the reporting period:
In line with the articles of association the Supervisory Board consists of sixteen members. Michael
Rüdiger and Andreas Gottschling were elected or appointed by the court as two of the eight shareholder
representatives on the Supervisory Board.
Michael Rüdiger succeeds Joachim Faber, who stepped down from the Supervisory Board with effect
from the close of the Annual General Meeting on 19 May 2020. Martin Jetter was elected as
Supervisory Board Chair in an extraordinary Supervisory Board meeting on 19 May 2020.
Andreas Gottschling succeeds Joachim Nagel who stepped down from the Supervisory Board with effect
from 30 June 2020.
Our most sincere thanks go to Joachim Faber and Joachim Nagel for their creative and constructive work
on the Supervisory Board of Deutsche Börse AG. We also thank Joachim Faber for his exceptional
leadership of the Supervisory Board as its Chair since 2012.
Michael Rüdiger and Andreas Gottschling received a detailed introduction to their work for the
Supervisory Board.
The following personnel changes were made with regard to the Executive Board in 2020.
Hauke Stars resigned as a member of Deutsche Börse AG’s Executive Board as of 30 June 2020, before
her contract ended. We appointed Heike Eckert to the Executive Board of Deutsche Börse AG with effect
from 1 July 2020. She is responsible for the newly formed division Human Resources and Compliance.
Heike Eckert has many years of managerial experience. She has worked for Deutsche Börse Group in
Germany and abroad since 1995, most recently as Deputy Chair of the Executive Board and Chief
Operating Officer of Eurex Clearing AG.
We thank Hauke Stars for her responsible and highly successful work.
The Supervisory Board also took important decisions about the future composition of the Executive
Board.
At the beginning of the year the Supervisory Board extended Theodor Weimer’s term of office as Chair of
Deutsche Börse AG’s Executive Board until 31 December 2024. In addition, the Supervisory Board
extended the appointment of the two Executive Board members Thomas Book (Trading and Clearing)
and Stephan Leithner (Pre- and Post-trading) until 30 June 2026, and the appointment of Christoph
Böhm (CIO/COO) until 31 October 2026.
18
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Deutsche Börse Group | Annual report 2020
Deutsche Börse Group | Annual report 2020
Executive Board and Supervisory Board | Report of the Supervisory Board
Management report
Financial statements
Notes
Additional information
Management of individual conflicts of interest
No conflicts of interest arose with regard to individual Supervisory Board members during the reporting
period.
The Supervisory Board would like to thank the Executive Board and all employees for their strong
commitment and achievements in 2020, which the COVID-19 pandemic made particularly challenging.
Frankfurt am Main, 5 March 2021
for the Supervisory Board
Martin Jetter
Chair of the Supervisory Board
19
12
Deutsche Börse Group | Annual report 2020
Combined
management report
21
Fundamental information about the Group
32
Report on economic position
52
Report on post-balance sheet date events
53
Combined non-financial statement
74
Risk report
105
Report on opportunities
109
Report on expected developments
112
Deutsche Börse AG
(disclosures based on the HGB)
118
Remuneration report
152
Corporate governance statement
Deutsche Börse Group | Annual report 2020
Executive and Supervisory Boards
Management report | Fundamental information about the Group
Financial statements
Notes
Further information
Combined management report
This combined management report covers both Deutsche Börse Group and Deutsche Börse AG and
includes the combined non-financial statement according to the CSR Directive. It follows the
requirements of the Handelsgesetzbuch (HGB, German Commercial Code) and the Deutscher
Rechnungslegungs Standard Nr. 20 (DRS 20, German Accounting Standard No. 20).
Fundamental information about the Group
Overview of Deutsche Börse Group
Business operations and Group structure
Deutsche Börse AG, which is headquartered in Frankfurt/Main, Germany, is the parent company of
Deutsche Börse Group. As at 31 December 2020, Deutsche Börse Group employed a total of 7,238
staff (31 December 2019: 6,775), from 110 nationalities at 43 locations around the globe. As one of
the largest providers of market infrastructure worldwide, the Group offers a broad product and service
range to its clients. These cover the entire financial market transaction process chain: from the provision
of market information, indices and analytical solutions (pre-trading), the trading and clearing services on
which these are based, and the settlement of transactions right through to the custody of securities and
funds, as well as services for liquidity and collateral management (post-trading). The Group also
develops and operates the IT systems that support all of these processes.
Deutsche Börse AG markets the price and reference data of the systems and platforms of Deutsche
Börse Group as well as any other trading-relevant information. In addition, it develops and markets
indices and analytics solutions via its subsidiary Qontigo GmbH. Furthermore, Deutsche Börse AG
operates the Eurex® Exchange futures and options market via Eurex Frankfurt AG. Commodities spot and
derivatives markets are operated by the Group’s direct subsidiary European Energy Exchange AG (EEX).
Via its subsidiary 360 Treasury Systems AG (360T), Deutsche Börse AG offers a platform for foreign
exchange trading. The Group also operates the cash market at Frankfurter Wertpapierbörse (Frankfurt
Stock Exchange – FWB®), with its fully electronic trading venue Xetra®, as well as offering trading in
structured products (certificates and warrants) in Germany via the Börse Frankfurt Zertifikate AG
exchange. The Group also offers clearing services for the cash equities and derivatives markets (Eurex
Clearing AG). All post-trading services that Deutsche Börse Group provides for securities are handled by
Clearstream Holding AG and its subsidiaries (Clearstream Holding group). These include transaction
settlement, the administration and custody of securities, as well as services for investment funds and
global securities financing. Deutsche Börse AG and Clearstream Services S.A. develop and operate
Deutsche Börse Group’s technological infrastructure.
Deutsche Börse Group's full group of consolidated entities is set out in note 33 to the consolidated
financial statements.
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Deutsche Börse Group | Annual report 2020
Executive and Supervisory Boards
Management report | Fundamental information about the Group
Financial statements
Notes
Further information
Reporting segments
Deutsche Börse Group's business is divided into seven segments: Eurex (financial derivatives), EEX
(commodities), 360T (foreign exchange), Xetra (cash equities), Clearstream (post-trading), IFS
(investment fund services) and Qontigo (index and analytics business).
This structure serves as a basis for the Group’s internal management and financial reporting (see the
following table entitled “Deutsche Börse Group’s reporting segments” for details).
Deutsche Börse Group’s reporting segments
Reporting segment
Business areas
Eurex (financial derivatives)
EEX (commodities)
360T (foreign exchange)
Xetra (cash equities)
▪ Electronic trading of derivatives (Eurex Exchange)
▪ Eurex Repo® OTC trading platform
▪ C7® electronic clearing architecture
▪ Central counterparty for on- and off-exchange derivatives and repo transactions
▪ Marketing of licences for trading and market signals
▪ Link-up of trading participants
▪ Electronic trading of electricity and gas products as well as emission rights (EEX group)
▪ Central counterparty for traded cash market and derivative products
▪ Electronic trading of foreign exchange (360T®)
▪ Central counterparty for OTC and exchange-traded derivatives
▪ Cash market with the trading venues Xetra®, Börse Frankfurt and Tradegate
▪ Central counterparty for equities and bonds
▪ Listing
▪ Marketing of licences for trading and market signals
▪ Link-up of trading participants
▪ Technology solutions for external customers
Clearstream (post-trading)
▪ Custody and settlement of securities
▪ Services for global securities finance and collateral management as well as secured money
market transactions, repo and securities lending transactions
IFS (investment fund services)
▪ Investment fund services (order routing, settlement and custody)
▪ Investment fund distribution services (Clearstream Fund Centre)
Qontigo (index and analytics
business)
▪ Development and marketing of indices (STOXX® and DAX®)
▪ Innovative portfolio management and risk analysis software
2
22
Deutsche Börse Group | Annual report 2020
Executive and Supervisory Boards
Management report | Fundamental information about the Group
Financial statements
Notes
Further information
Management
The governing bodies of Deutsche Börse AG, which is a German stock corporation, are the Annual
General Meeting, the Supervisory Board and the Executive Board, each of which has its own areas of
responsibility.
The Annual General Meeting rules on the appropriation of distributable profit, appoints the shareholder
representatives on the Supervisory Board and discharges the Executive Board and the Supervisory Board
of liability. In addition, it rules on equity issuance and other matters governed by the Aktiengesetz (AktG,
German Stock Corporation Act).
The Supervisory Board appoints, supervises and advises the members of the Executive Board, and is
directly involved in decisions of fundamental importance to the Group. Additionally, it approves the
consolidated financial statements prepared by the Executive Board. Members of the Supervisory Board
are appointed for a period of three years, although the Annual General Meeting may determine a shorter
term of office when electing members. As Deutsche Börse AG has more than 2,000 employees in
Germany, members of the Supervisory Board must be appointed in accordance with the provisions of the
Mitbestimmungsgesetz (German Co-Determination Act). Deutsche Börse's Supervisory Board comprises
eight shareholder representatives and eight employee representatives in order to meet the growing
demands placed upon Supervisory Board members in connection with the Company's growth and that of
the Group as a whole, particularly with regard to the diversity and internationalisation of Supervisory
Board work. Further details can be viewed in the "Corporate governance statement" section.
The Executive Board manages the company at its own responsibility; the Chief Executive Officer (CEO)
coordinates the activities of the Executive Board members. In the 2020 financial year, the Executive
Board of Deutsche Börse AG comprised six members. The remuneration system and the remuneration
paid to individual members of the Executive Board of Deutsche Börse AG is explained in more detail in
the remuneration report.
Organisational structure
The responsibilities of the Chief Executive Officer (CEO) include the Group's strategy, M&A activities,
communications, legal affairs as well as regulatory matters, and Group Audit. The duties of the Chief
Financial Officer (CFO) comprise, among other things, financial reporting and controlling, risk
management, treasury and investor relations. The Trading & Clearing division covers derivatives trading
and the clearing houses of Deutsche Börse Group. The electronic foreign exchange trading platform
360T®, the EEX Group and the cash market with its trading venues Xetra, Frankfurt Stock Exchange and
the certificates and warrants business also report to this Executive Board function. The division is also
responsible for building up a pre-IPO market and establishing tools for growth financing. The Pre- and
Post-Trading division includes the settlement and custody business and Clearstream’s collateral
management, as well as the reporting segments IFS (Investment Fund Services) and the index and
analytics business (Qontigo). The Executive Board division for HR & Compliance is responsible for the
Group’s human resources and compliance division. The Chief Information Officer/Chief Operating Officer
(CIO/COO) function combines Deutsche Börse Group's IT activities and market operations. Technological
transformation and digitalisation are the key areas of focus for this division.
3
23
Deutsche Börse Group | Annual report 2020
Executive and Supervisory Boards
Management report | Fundamental information about the Group
Financial statements
Notes
Further information
Objectives and strategies
Deutsche Börse Group’s objectives and strategies
Deutsche Börse Group is one of the largest market infrastructure providers worldwide. The Group’s
business model contributes to the stability, efficiency and integrity of capital markets. This benefits
issuers in the form of low costs of raising capital and investors in the form of high liquidity and low
transaction costs. At the same time, Deutsche Börse stands for transparent, secure capital markets in
which organised trading is based on free price formation.
Deutsche Börse Group's business model is geared towards a diversified product and service offer that
covers the entire value chain of financial market transactions. The Group’s diversified business model is
based on the following key elements:
◼ Integrating different financial market services such as trading, clearing, settlement, securities custody,
market data services, liquidity and collateral management, as well as index and analytics solutions
◼ Providing these services for various asset classes such as equities, bonds, funds, commodities, foreign
exchange, interest rates, and derivatives products based on these underlyings
◼ Developing and operating proprietary electronic systems for all processes along the value creation
chain
◼ Organising an impartial marketplace to ensure orderly, supervised trading with fair price formation,
plus providing risk management services
In order to maintain and expand its leading position among exchange organisations, Deutsche Börse
Group pursued “Roadmap 2020” growth strategy from 2018 onwards. Deutsche Börse focused on
generating secular, organic growth, while accelerating M&A growth through acquisitions in five defined
business areas. In this period Deutsche Börse Group expected average growth in net income based on
these secular drivers of at least 5 per cent p.a. With regard to adjusted net profit for the period
attributable to Deutsche Börse AG shareholders, the Group targeted an average annual growth rate of 10
to 15 per cent over the same period. By the close of financial year 2020 the Group had achieved all the
targets set in its Roadmap 2020. Net revenue rose by around 9 per cent p.a. on average and adjusted
net profit by an average of 12 per cent. In this period the Group also successfully completed several
M&A transactions, such as the acquisition of Axioma Inc. or Fondcenter AG from UBS, as well as
reporting significant progress on its investment in new technologies, such as cloud computing and digital
ledger technology.
On 18 November 2020 Deutsche Börse published its new medium-term growth strategy Compass
2023, which defines the strategic direction and targets for the years ahead. Among the most important
organic growth drivers are the trend from over-the-counter (OTC) to on-exchange trading, ESG, the
increasing importance of the buy-side, passive investments and the digitisation of the financial sector.
Growth by M&A is also set to accelerate. Deutsche Börse is aiming for overall growth in net revenue of
10 per cent p.a. on average. Organic initiatives and M&A are each intended to contribute growth of
around 5 per cent. Earnings before interest, tax, depreciation and amortisation (EBITDA) and earnings
per share (EPS) should also rise by an average of 10 per cent p.a.
4
24
Deutsche Börse Group | Annual report 2020
Executive and Supervisory Boards
Management report | Fundamental information about the Group
Financial statements
Notes
Further information
Compass 2023 targets
Net revenue
Earnings before interest, tax, depreciation and amortisation (EBITDA) (reported)
Earnings per share (reported)
Based on 2019
€m
2,936.0
1,678.3
€5.47
Objectives and
strategies
Compass 2023
~10% p. a.
~10% p. a.
~10% p. a.
As part of an ongoing process, the Group is reviewing its organic growth initiatives, focusing in particular
on expansion into markets and asset classes characterised by structural growth, while attaching great
importance to ensuring that the initiatives launched are implemented in a consistent, successful manner.
Key initiatives and growth drivers are described in the opportunities report. Moreover, the remuneration
system for the Executive Board and executive staff has created a number of incentives for growth in the
individual business divisions. Please refer to the remuneration report for a detailed description of all
targets. As far as external growth opportunities are concerned, the focus is on strengthening existing
high-growth areas, and on exploring new asset classes and services.
Among the factors that have a significant impact on Deutsche Börse Group's organic growth are:
◼ Regulatory requirements of all market participants: if regulatory initiatives (such as EMIR, MiFIR and
CRR/CRD) strengthen the role of exchanges, this will also benefit Deutsche Börse Group.
◼ Structural changes in the financial markets: e.g. trading activity increases if investment funds make
greater use of derivatives to implement their trading strategies.
◼ Innovative strength: if Deutsche Börse Group succeeds in continuously introducing new products and
services for which there is market demand, the Group will be in a position to further expand its
business.
◼ The cyclical nature of financial markets: For example, increased stock market volatility typically leads to
higher levels of trading in the cash and derivatives markets, and rising interest rates tend to drive up
net interest income and trading volumes in interest rate derivatives.
Deutsche Börse Group is committed to maintaining transparent, reliable and liquid financial markets,
although it cannot control the volume drivers for these markets, i.e. cyclical factors. The Group can
influence the other factors either wholly or partially; for instance, it can lobby for a favourable legal
framework for the financial markets, or it can develop products and services that support clients’
business. This also enables it to reduce dependence on those cyclical factors beyond its control.
Management approach for a Group-wide commitment to sustainability
One of Deutsche Börse Group's objectives and strategies is to take a holistic approach to corporate
responsibility. Its management approach is therefore guided by two action-led principles that aim to
sustainably strengthen and preserve the value that Deutsche Börse Group adds to the economy and
society:
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Deutsche Börse Group | Annual report 2020
Executive and Supervisory Boards
Management report | Fundamental information about the Group
Financial statements
Notes
Further information
◼ Building trust. Deutsche Börse Group aims to organise the capital markets in a way that ensures their
integrity, transparency and security. The availability of high-quality information is a key aspect in this
process and something that the Group is working on constantly to enhance. In this context, providing
sustainability information is as significant as engaging in a constructive dialogue on the future viability
of the international capital markets with our customers but also with the general public.
◼ Leading by example. As a listed service provider, Deutsche Börse Group aims to ensure that its own
corporate activities are conducted responsibly and with a view to the future. In addition, the Group
pursues a sustainable human resources policy and is committed to the environment and hence to
conserving resources. It enhances its commitment to sustainability and related reporting on an ongoing
basis in order to establish itself as a long-term role model on the market.
◼ Increasing public awareness. The Group is part of civil society and as such has a responsibility towards
it. It is committed to fulfilling this role both in Germany and in its international locations. It
systematically bases its actions on local requirements and, as a good corporate citizen, takes part in
long-term cooperative initiatives aimed at strengthening structures in the non-profit sector.
In 2016, Deutsche Börse established a Group Sustainability Board to continuously develop the Group-
wide sustainability strategy along the entire value chain and advise the Executive Board on sustainability
issues. The Board convenes twice a year and in 2020 its members comprised twelve representatives of
the Executive Board divisions, plus the Head of Group Sustainability and one Executive Board member.
Internal management
Management systems
Deutsche Börse Group’s internal management system is generally based on key performance indicators
taken from the consolidated income statement (net revenue, operating costs excluding depreciation,
amortisation and impairment losses; EBITDA; Group net profit for the period attributable to Deutsche
Börse AG shareholders), as well as on various parameters derived from the consolidated statement of
financial position and the consolidated statement of cash flows (cash flows from operating activities,
liquidity, equity less intangible assets). In addition, the system includes key performance indicators
derived from the income statement and balance sheet (net debt/EBITDA ratio and return on shareholders'
equity). Details on the components of the income statement are shown in the table “Consolidated income
statement”. As of financial year 2021 the company no longer adjusts the performance indicators in the
consolidated income statement for exceptional items, and so will only use the reported figures, including
all influencing factors for management purposes in future.
The most important performance indicators for managing the Group’s results of operations are secular
net revenue growth, EBITDA and earnings per share. The main performance indicators derived from the
statement of financial position and the statement of cash flows include cash flows from operating
activities and equity less intangible assets. In addition, Deutsche Börse Group aims to hold sufficient
liquidity to be able to meet all of the Group's payment obligations when due. There is no set target for
the Group’s management KPI of equity less intangible assets; rather, the objective is to maintain a
positive figure.
At Group level, a net debt/EBITDA ratio not exceeding 1.75 and free funds from operations (FFO) relative
to net debt greater than or equal to 50 per cent is also targeted in order to achieve the "minimum
financial risk profile" consistent with the current AA rating in accordance with S&P Global Ratings
methodology. In addition, an interest coverage ratio of at least 14 is targeted for Deutsche Börse Group
using this methodology.
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Executive and Supervisory Boards
Management report | Fundamental information about the Group
Financial statements
Notes
Further information
Group projects are prioritised and steered using strategic and financial criteria, taking project-specific
risks into account. The main criterion used to assess the strategic attractiveness of projects is their
(expected) contribution to the strategic objectives for Deutsche Börse Group and its business areas. The
main financial criteria are key performance indicators such as net present value (NPV), the payback
period and the return after tax, which are calculated on the basis of the project or business plans. Risks
are monitored at all levels of project work, i.e. both when prioritising and steering projects and during
ongoing project management.
Details concerning the non-financial performance indicators used by Deutsche Börse Group are outlined
in the “Combined non-financial statement” section.
Internal control system as part of the financial reporting process
Deutsche Börse has established a Group-wide internal control system (ICS). The ICS comprises rules to
manage the company’s activities as well as guidelines defining how compliance with these rules is
monitored. The principles of the Group-wide ICS are also applied in partially decentralized units of
Deutsche Börse Group. Monitoring tasks are implemented through process-integrated measures (such as
organisational safeguards and controls) as well as through process-independent measures. All business
divisions are responsible for ensuring that Group-wide ICS requirements are met in their respective areas
of responsibility.
The purpose of the accounting-related ICS is to ensure orderly accounting practices. The central
Financial Accounting and Controlling (FA&C) division, together with decentralised units acting on the
requirements set out by FA&C, are responsible for preparing the accounts at Deutsche Börse AG and its
consolidated subsidiaries. Group Tax is responsible for determining tax items for accounting purposes.
The relevant department heads are responsible for the related processes, including effective security and
control measures. The aim is to ensure that risks relating to the accounting process are identified early
on, so that remedial action can be taken in good time.
In order to assure uniform and consistent accounting, FA&C provides regularly updated accounting
manuals and guidelines and work instructions for the material accounting processes – as part of the
preparation of the annual and consolidated financial statements of Deutsche Börse AG. All employees in
the FA&C area, as well as in decentral units, have access to these documents and the accounting and
account assignment guidelines, allowing them to see for themselves the scope of managerial discretion
and accounting options Deutsche Börse Group exercises.
Moreover, Deutsche Börse Group continuously monitors and analyses changes in the accounting
environment and adjusts its processes in line with them. This applies in particular to national and
international accounting standards.
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Financial statements
Notes
Further information
Another key component of the ICS is the principle of segregation of duties: tasks and authorities are
clearly assigned and separated from each other in organisational terms. Incompatible tasks – such as
modifying master data on the one hand and issuing payment instructions on the other – are strictly
segregated at a functional level. An independent control unit grants individual employees access rights to
the accounting system and continuously monitors these permissions using a so-called incompatibility
matrix. Transactions are initially recorded in the general ledger or the appropriate sub ledgers on the
basis of the chart of accounts and the account allocation guidelines.
Major Deutsche Börse Group subsidiaries maintain and consolidate their general ledgers in the same
system. Accounting data from other companies is uploaded for inclusion in the consolidated
financial statements. Liabilities, expenses and income for individual transactions are recorded in
separate accounts under the name of the counterparty concerned. Any consolidation differences are
reviewed centrally and sent to the accounting departments of the companies concerned for clarification.
The processes, systems and controls described above aim to provide reasonable assurance that the
accounting system complies with the applicable principles and laws. In addition, Compliance and
Internal Audit act as a further line of defence, performing risk-based, process-independent controls on
whether the ICS is appropriate and effective. The Executive Board and the Audit Committee established
by the Supervisory Board receive regular reports on the effectiveness of the ICS with respect to the
financial reporting process.
Takeover-related disclosures
Disclosures in accordance with sections 289a (1) and 315a (1) of the German Commercial Code
(HGB, prior version) and explanatory notes
In accordance with sections 289a (1) and 315a (1) of the German Commercial Code (HGB,
Handelsgesetzbuch, prior version), in conjunction with section 83 (1) sentence 2 of the Introductory Act
to the German Commercial Code (EGHGB, Einführungsgesetz zum Handelsgesetzbuch), Deutsche Börse
AG hereby makes the following disclosures as at 31 December 2020:
The share capital of Deutsche Börse AG amounted to €190.0 million on the above-mentioned reporting
date and was composed of 190 million no-par value registered shares. There are no other classes of
shares besides these ordinary shares.
The share capital has been contingently increased by up to €17.8 million by issuing up to 17.8 million
no-par value registered shares (contingent capital 2019). The contingent capital increase will only be
implemented to the extent that holders of convertible bonds or of warrants attaching to bonds with
warrants issued by the Company or by a Group company in the period until 7 May 2024 on the basis of
the authorisation granted to the Executive Board by resolution of the Annual General Meeting of 8 May
2019 on Item 8 (b) of the agenda exercise their conversion or option rights, that they meet their
conversion or option obligations, or that shares are tendered, and no other means are used to settle such
rights or obligations. More details can be found in Article 4 (7) of the Articles of Association of Deutsche
Börse AG.
The Executive Board is only aware of those restrictions on voting rights that arise from the Aktiengesetz
(AktG, German Stock Corporation Act). Those shares affected by section 136 AktG are therefore
excluded from voting rights. Furthermore, shares held by Deutsche Börse AG as treasury shares are
exempted from the exercise of any rights according to section 71b AktG.
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Executive and Supervisory Boards
Management report | Fundamental information about the Group
Financial statements
Notes
Further information
Under the Wertpapierhandelsgesetz (WpHG, German Securities Trading Act), any investor whose
shareholding reaches, exceeds or falls below specified voting right thresholds as a result of purchase,
sale or any other transaction is required to notify the company and the Bundesanstalt für Finanz-
dienstleistungsaufsicht (BaFin, German Federal Financial Supervisory Authority). The lowest threshold
for this disclosure requirement is 3 per cent. Deutsche Börse AG is not aware of any direct or indirect
equity interests in its capital exceeding 10 per cent of the voting rights.
There are no shares with special provisions granting the holder control rights.
Employees holding shares in Deutsche Börse AG exercise their rights in the same way as other
shareholders in accordance with the statutory provisions and the Articles of Association.
Members of the Executive Board are appointed and dismissed in accordance with sections 84 and 85
AktG and with Article 6 of the Articles of Association of Deutsche Börse AG. Amendments to the Articles
of Association of Deutsche Börse AG are adopted by resolution of the Annual General Meeting in
accordance with section 119 (1) No. 6 AktG. Under Article 12 (4) of the Articles of Association of
Deutsche Börse AG, the Supervisory Board is authorized to make amendments to the Articles of
Association that relate to the wording only. In accordance with Article 18 (1) of the Articles of
Association of Deutsche Börse AG, resolutions of the Annual General Meeting are passed by a simple
majority of the votes cast, unless otherwise required by the AktG. Insofar as the AktG additionally
prescribes a majority of the share capital represented at the time of a resolution, a simple majority of the
share capital represented is sufficient where this is legally permissible.
Subject to the approval of the Supervisory Board, the Executive Board is authorised to increase the share
capital by up to a total of €13.3 million on one or more occasions in the period up to 10 May 2021 by
issuing new no-par value registered shares in exchange for cash and/or non-cash contributions
(authorised capital I). Shareholders must be granted pre-emptive rights. However, subject to approval by
the Supervisory Board, the Executive Board may exclude shareholders’ pre-emptive rights with respect to
fractional amounts. However, according to the authorisation, the Executive Board may only exclude
shareholders’ pre-emptive rights if the total number of shares that are issued during the term of
authorisation and that exclude shareholders’ pre-emptive rights does not exceed 20 per cent of the share
capital. Full authorisation, and particularly the conditions under which shareholders’ pre-emptive rights
can be excluded, is derived from Article 4 (3) of the Articles of Association of Deutsche Börse AG.
The Executive Board is also authorised to increase the share capital by up to a total of €19.0 million on
one or more occasions in the period up to 18 May 2025, subject to the approval of the Supervisory
Board, by issuing new no-par value registered shares against cash and/or non-cash contributions
(authorised capital II). Shareholders must be granted pre-emptive rights, which the Executive Board can
exclude in certain cases, subject to the approval of the Supervisory Board in each case. The Executive
Board is authorised to exclude shareholders’ pre-emptive rights: (1) in the case of cash capital increases,
provided that the issue price of the new shares is not significantly lower than the quoted price, and the
total number of shares issued under exclusion of shareholders’ pre-emptive rights does not exceed 10
per cent of the share capital; (2) in the case of physical capital increases in exchange for non-cash
contributions for the purpose of acquiring companies, parts of companies, interests in companies, or
other assets; or (3) with respect to fractional amounts. However, according to the authorisation, the
Executive Board may only exclude shareholders’ pre-emptive rights if the total number of shares that are
issued during the term of authorisation and that exclude shareholders’ pre-emptive rights does not
exceed 10 per cent of the share capital. Full authorisation, and particularly the conditions under which
shareholders’ pre-emptive rights can be excluded, is derived from Article 4 (4) of the Articles of
Association of Deutsche Börse AG.
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Financial statements
Notes
Further information
In addition, the Executive Board is authorised to increase the share capital by up to a total of
€19.0 million on one or more occasions in the period up to 18 May 2024, subject to the approval of the
Supervisory Board, by issuing new no-par value registered shares in exchange for cash contributions
(authorised capital III). Shareholders must be granted pre-emptive rights, which the Executive Board can
exclude, subject to the approval of the Supervisory Board, only for fractional amounts. However,
according to the authorisation, the Executive Board may only exclude shareholders’ pre-emptive rights if
the total number of shares that are issued during the term of authorisation and that exclude
shareholders’ pre-emptive rights does not exceed 10 per cent of the share capital. The exact content of
this authorisation is derived from Article 4 (5) of the Articles of Association of Deutsche Börse AG.
Furthermore, the Executive Board is authorised to increase the share capital by up to a total of
€6.0 million on one or more occasions in the period up to 16 May 2022, subject to the approval
of the Supervisory Board, by issuing new no-par value registered shares against cash and/or non-cash
contributions (authorised capital IV). Shareholders must be granted pre-emptive rights unless the
Executive Board makes use of the authorisation granted to it to exclude such rights, subject to the
approval of the Supervisory Board. The Executive Board is authorised to exclude shareholders’ pre-
emptive rights for fractional amounts with the approval of the Supervisory Board. However, according to
the authorisation, the Executive Board may only exclude shareholders' pre-emptive rights if the total
number of shares issued during the term of the authorisation, excluding pre-emptive rights, does not
exceed 20 per cent of the share capital. Full authorisation is derived from Article 4 (6) of the Articles of
Association of Deutsche Börse AG.
The Executive Board is authorised to acquire treasury shares up to 10 per cent of the share capital.
However, the acquired shares, together with any treasury shares acquired for other reasons that are held
by the Company or attributed to it in accordance with sections 71a et seq. of the AktG, may at no time
exceed 10 per cent of the Company’s share capital. The authorisation to acquire treasury shares is valid
until 7 May 2024 and may be exercised by the company in full or in part on one or more occasions.
However, it may also be exercised by dependent companies, by companies in which Deutsche Börse AG
holds a majority interest or by third parties on its or their behalf. The Executive Board may elect to
acquire the shares (1) on the stock exchange, (2) via a public tender offer addressed to all shareholders
or via a public request for offers of sale addressed to the company’s shareholders, (3) by issuing tender
rights to shareholders or (4) using derivatives (put options, call options, forward purchases or a
combination of put options, call options and forward purchases). The full and exact wording of the
authorisation to acquire treasury shares, and particularly the permissible uses to which the shares may
be put, can be found in items 6 and 7 of the agenda for the Annual General Meeting held on 8 May
2019.
The following material agreements of the Company are subject to a change-of-control clause following a
takeover bid:
◼ On 28 March 2017, Deutsche Börse AG and its subsidiary Clearstream Banking S.A. entered into a
multicurrency revolving facility agreement with a banking syndicate for a working capital credit totalling
up to €750.0 million. If there is a change of control, the credit relationship between Deutsche
Börse AG and the lenders can be reviewed in negotiations within a period of no more than 60 days. In
this process, each lender has the right, at its own discretion, to terminate its credit commitment and
demand partial or full repayment of the amounts owing to it. A change of control occurs if Deutsche
Börse AG no longer directly or indirectly holds the majority of Clearstream Banking S.A. or if a
person or a group of persons acting in concert acquires more than 50 per cent of the voting shares of
Deutsche Börse AG.
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Management report | Fundamental information about the Group
Financial statements
Notes
Further information
◼ Under the terms of Deutsche Börse AG’s €600.0 million fixed-rate bond issue 2020/2047 (hybrid
bond), Deutsche Börse AG has a termination right in the event of a change of control (as defined in the
terms of the bond), which, if exercised, entitles Deutsche Börse AG to redeem the bonds at par, plus
accrued interest. If Deutsche Börse AG does not exercise this termination right, the affected bonds’
coupon will increase by an additional 500 basis points per annum. A change of control occurs if a
person or a group of persons acting in concert, or third parties acting on their behalf, has or have
acquired more than 50 per cent of the shares of Deutsche Börse AG or the number of Deutsche Börse
AG shares required to exercise more than 50 per cent of the voting rights at Annual General Meetings
of Deutsche Börse AG. In addition, the relevant bond terms require that the change of control must
adversely affect the long-term rating given to Deutsche Börse AG by Moody’s Investors Services, Inc.,
S&P Global Ratings or Fitch Ratings Limited. Further details can be found in the applicable bond
terms.
◼ The terms of the €500.0 million fixed-rate bonds 2015/2025, the €600.0 million fixed-rate bonds
2018/2028, and the €600.0 million fixed-rate bonds 2012/2022, which were all issued by Deutsche
Börse AG, all give the respective bondholders a termination right in the event of a change of control (as
defined in the terms of the respective bond). If these termination rights are exercised, the bonds are
repayable at par plus any accrued interest. A change of control occurs if a person or a group of persons
acting in concert, or third parties acting on their behalf, has or have acquired more than 50 per cent of
the shares of Deutsche Börse AG or the number of Deutsche Börse AG shares required to exercise more
than 50 per cent of the voting rights at Annual General Meetings of Deutsche Börse AG. In addition,
the respective bond terms require that the change of control must adversely affect the rating given to
one of the preferential unsecured debt instruments of Deutsche Börse AG by Moody’s Investors
Services, Inc., S&P Global Ratings or Fitch Ratings Limited. Further details can be found in the
applicable bond terms.
◼ Based on the previous remuneration system for Executive Board members presented to the Annual
General Meeting 2016, under certain conditions the Executive Board members of Deutsche Börse AG
have a special termination right in the event of a change of control. According to the agreements made
with all Executive Board members, a change of control occurs if (1) a shareholder or third party
discloses possession of more than 50 per cent of the voting rights in Deutsche Börse AG in accordance
with sections 33 and 34 of the German Securities Trading Act (WpHG), (2) an intercompany
agreement in accordance with Section 291 of the AktG is entered into with Deutsche Börse AG as a
dependent company, or Deutsche Börse AG is absorbed in accordance with section 319 of the AktG, or
(3) Deutsche Börse AG is merged in accordance with Section 2 of the German Transformation Act
(UmwG).
In addition, individual service contracts with Executive Board members include agreements on
compensation in the event of a change of control. Such agreements are no longer provided for in the
remuneration system for Executive Board members presented for approval to the Annual General
Meeting 2020 or in the remuneration system to be presented to the Annual General Meeting 2021. A
description of the existing agreements as well as the changes in the remuneration systems can be found
in the remuneration report.
11
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Deutsche Börse Group | Annual report 2020
Executive and Supervisory Boards
Management report | Report on economic position
Financial statements
Notes
Further information
Report on economic position
Macroeconomic and sector-specific environment
Macroeconomic conditions continue to have an influence on the business development of Deutsche
Börse Group despite the growing importance of structural growth factors. The main factor affecting
financial year 2020 was the outbreak of the Covid-19 pandemic, its global economic impact and the
challenges of dealing with the virus and its containment. This had a massive impact on the
macroeconomic environment. The following aspects are particularly noteworthy:
▪ the massive slowdown in the global economy, particularly in the first half-year 2020, due to the
outbreak of the Covid-19 pandemic
▪ substantial restrictions on economic and social activities (lockdown)
▪ great uncertainty among participants in financial and capital markets due to the lack of visibility about
the trajectory of the pandemic, combined with the spike in market volatility in the first half-year (as
measured by the VSTOXX® index).
▪ higher levels of debt being taken on by many states to alleviate the consequences of the economic
burdens
▪ concentrated monetary policy measures by central banks in response to provide liquidity, in
combination with historically low interest rates around the world
▪ uncertainty until year-end regarding the terms of the United Kingdom's withdrawal from the EU and its
impact on markets.
▪ regulatory projects and the resulting stricter requirements for capital market participants
In its January estimate the International Monetary Fund (IMF) predicted a global contraction of 3.5 per
cent for 2020. Negative growth of 7.2 per cent is expected for the euro area and of 5.4 per cent for
Germany.
Business developments
As described in the macroeconomic section of this report, it became apparent in spring 2020 that the
infectious disease Covid-19 that broke out in late 2019 in China would have a significantly adverse
effect on the performance of the world economy and so also an impact on business developments at
Deutsche Börse Group. The rapid spread of the virus around the world caused great uncertainty among
market participants and an unusual level of market activity on cash equities and derivatives markets.
Governments and central banks around the world tried to contain the economic consequences of the
Covid-19 pandemic with unprecedented stimulus programmes, emergency lending, cuts to prime
interest rates and bond purchase programmes. The Federal Reserve, the US central bank, reduced its
target range for the prime rate in the USA from 0.25 to 0.00 per cent, combined with various
government policy measures, while the European Central Bank (ECB) increased the Pandemic
Emergency Purchase Programme, PEPP) for sovereign and corporate bonds to €1.85 trillion and
extended its minimum duration. Changes in the interest rate in particular had a negative impact on
treasury result from banking business in the Clearstream segment. From the second quarter onwards,
high liquidity levels and market hopes of a swift economic recovery resulted in a steep rise in leading
international indices. This rather obscured the burdens from the trade conflict between the USA and
China and the risk of a no-deal Brexit. Market volatility increased slightly in the fourth quarter following
a breakthrough in the development of suitable vaccines against Covid-19. This in turn boosted market
activity in cash equities and derivatives markets.
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Management report | Report on economic position
Financial statements
Notes
Further information
Comparability of figures
With effect from the first quarter of 2020, Deutsche Börse Group has adjusted the segment reporting
structure, in order to further enhance transparency regarding the Group’s growth areas.
▪ The former GSF (collateral management) segment has been fully allocated to the Clearstream
(post-trading) segment.
▪ Business in the former Data segment is now being reported within the Xetra (cash equities) and
Eurex (financial derivatives) segments.
For further information on the comparability of figures please see note 3.
Results of operations
For Deutsche Börse Group the financial year 2020 was defined by the course of the Covid-19 pandemic,
which in some cases had a significant impact on segment earnings. In an extraordinarily volatile market
environment, the Group saw significant earnings increases in the first quarter of 2020, whereas markets
became increasingly subdued over the remainder of the year and prime rates fell to new lows worldwide.
It was only in the fourth quarter that maket activity picked up again slightly, triggered by the hope of an
economic recovery following the development of a suitable vaccine against Covid-19. Looking at the full
year, all segments contributed to the Group’s growth, with the exception of Clearstream. Secular net
revenue rose across the Group by 5 per cent as planned, driven by product innovations, greater market
share and new customer wins, particularly in the segments Eurex, EEX, 360T, IFS and Qontigo. Cyclical
effects contributed a total of 2 per cent to net revenue growth. Positive factors, such as the increase in
trading volumes of equity index derivatives (Eurex segment) and cash equities (Xetra segment) were
offset by a significant decline in net interest income from banking business (Clearstream), particularly
due to the interest rate cuts by the US central bank. The Group also reported an increase of 2 per cent in
net revenue due to consolidation, primarily relating to the acquisitions of Axioma (Qontigo segment) and
the UBS fund distribution platform Fondcenter AG (IFS segment). Net revenue in the reporting therefore
rose to €3,213.8 million (2019: €2,936.0 million), an increase of 9 per cent.
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Deutsche Börse Group | Annual report 2020
Executive and Supervisory Boards
Management report | Report on economic position
Financial statements
Notes
Further information
Operating costs for Deutsche Börse Group came to €1,368.7 million in the reporting period (2019:
€1,264.4 million) and were made up of staff costs and other operating expenses. Accounting for
exceptional items of €155.3 million (2019: €134.9 million) in connection with expenses to cut
structural costs as part of the Roadmap 2020, acquisition costs and advisory costs in the context of
litigation, adjusted operating costs came to €1,213.4 million (2019: €1,129.5 million). This represents
an increase of 7 per cent, which is primarily due to consolidation effects from the acquisition of Axioma
and higher investment.
Adjusted staff costs increased in 2020 by 11 per cent to €786.5 million (2019: €705.7 million),
largely due to higher average staff numbers as a result of acquisitions. This figure does not include
exceptional items of €36.4 million (2019: €42.1 million) which mainly include costs of efficiency
measures in the context of the Structural Performance Improvement Programme (SPIP) introduced in
2018.
Adjusted other operating expenses of €426.9 million (2019: €423.8 million) mainly reflect the costs of
upgrading and operating Deutsche Börse Group's technological infrastructure. This includes, for
example, costs for the Group's own IT and for external IT service providers. Also included are the costs of
office infrastructure at all the Group’s locations. This figure does not include exceptional items of €118.9
million (2019: €92.8 million) related to the cost of M&A activities.
Results from financial investments rose to €24.3 million (2019: €6.7 million) and stem primarily from a
mark-up in the equity method measurement of Tradegate AG Wertpapierhandelsbank (Xetra segment)
which recorded a very strong performance in the reporting year.
Deutsche Börse Group increased its earnings before interest, tax, depreciation and amortisation
(EBITDA) to €1,869.4 million (2019: €1,678.3 million). Adjusted EBITDA rose to €2,024.7 million
(2019: €1,813.2 million).
Depreciation, amortisation and impairment losses, which are reported separately from the operating
costs, went up to €259.2 million (2019: €222.9 million) due to higher capital expenditure and
consolidation effects.
The financial result totalled €–76.9 million (2019: €–53.7 million). Compared to the prior year, the
increase resulted from provisions for interest on potential tax backpayments.
The Group’s tax ratio of 26 per cent was on par with the previous year.
Overall, the net profit for the period attributable to Deutsche Börse Group shareholders was
€1,079.9 million (2019: €1,003.9 million), an increase of 8 per cent. Adjusted for exceptional items,
this increased by 9 per cent to €1,204.3 million (2019: €1,105.6 million).
Net profit for the period attributable to non-controlling interests rose to €45.2 million (2019: €31.5
million) and consisted mainly of the profits attributable to non-controlling interests in the EEX Group and
Qontigo GmbH, which put in a good performance in 2020.
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Deutsche Börse Group | Annual report 2020
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Management report | Report on economic position
Financial statements
Notes
Further information
Undiluted earnings per share on the basis of a weighted average of 183.4 million shares was €5.89
(2019: €5.47). After adjustment this rose by 9 per cent to €6.57 (2019: €6.03).
Comparison of results of operations with the forecast for 2019
For 2020 Deutsche Börse Group forecast a secular increase in net revenue of at least 5 per cent on the
basis of its various growth initiatives. In terms of the impact of macroeconomic factors on cyclical growth
the Group assumed a slight improvement year on year. By the time the combined management report
2019 was published, however, it was already apparent that the viral infection Covid-19 would have a
significant adverse impact on global economic performance, although the actual pandemic and its long-
term effects were not foreseeable at the time. Specifically, there was no assumption of significant cuts in
US interest rates in the first quarter. On the other hand the great uncertainty among market participants
led to much more market activity than expected in the first half-year. Despite these setbacks, Deutsche
Börse Group achieved secular growth in net revenue of 5 per cent and so met its forecast.
With an anticipated increase in secular net revenue of at least 5 per cent and operating costs ranging
accordingly, Deutsche Börse Group had expected adjusted net profit attributable to Deutsche Börse AG
shareholders to go up to around €1.20 billion. Although the course of business differed substantially
from the original forecast due to the Covid-19 pandemic, the company was able to increase its adjusted
net profit attributable to shareholders of Deutsche Börse AG to €1,204.3 million and so exactly meet the
forecast. Moreover, the Group achieved a ratio of net debt to adjusted EBITDA of 1.0, which is well
below the target value of 1.75 maximum. In line with projections, the operating cash flow was clearly
positive. Investments in property, plant and equipment, as well as intangible assets amounted to
€195.5 million, in line with the forecast of around €200 million. The dividend ratio is generally in the
middle of a range of 40 to 60 per cent of adjusted net profit for the period attributable to Deutsche Börse
AG shareholders. According to the proposal made to the Annual General Meeting, based on a proposed
dividend of €3.00 per share, this target was also realised with a ratio of 46 per cent.
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Management report | Report on economic position
Financial statements
Notes
Further information
Eurex (financial derivatives) segment
Eurex (financial derivatives) segment: key indicators
FINANCIAL KEY FIGURES
Net revenue
Equity index derivatives
Interest rate derivatives
Equity derivatives
OTC clearing (incl. net interest income on margins for OTC interest rate swaps)
Margin fees
Eurex Data
Other (incl. connectivity and member fees)
Operating costs
EBITDA
1) Previos year adjusted
2020
€m
20191)
€m
1,110.3
1,009.3
540.5
200.1
48.4
54.9
85.4
59.8
121.2
–373.1
738.8
484.0
210.9
51.1
41.2
52.3
60.8
109.0
–333.8
678.5
Change
%
10
12
–5
–5
33
63
–2
11
13
8
In the Eurex (financial derivatives) segment, Deutsche Börse Group reports on the financial derivatives
trading and clearing business at Eurex Exchange. The clearing volume of OTC interest rate swaps, one of
the secular growth factors for Deutsche Börse Group, is reported as a separate item within the segment.
The performance of the Eurex segment largely depends on the trading activities of institutional investors,
and proprietary trading by professional market participants. From the start of the financial year reporting
also covers the marketing of licences for Eurex-specific real-time trading and market signals and the
provision of historical data and analytics from the former Data segment.
In 2020 the strongly fluctuating market volatility, as measured by the volatility index VSTOXX, had a
significant impact on market activity and thus also on trading volumes for financial derivatives.
Accordingly, when volatility spiked in the first half of 2020, significantly more financial derivatives were
traded than in the second half-year. Equity index derivatives in particular saw year-on-year volume
increases. This also includes growth in new products such as MSCI, total return and dividend
derivatives. The sharp decrease in volumes of equity derivatives is primarily due to high trading volumes
in 2019, in addition to an unfavourable market environment in the second half of 2020. Monetary and
interest rate policy decisions to alleviate the economic impact of the Covid-19 pandemic significantly
reduced the likelihood of higher long-term interest rates in Europe and resulted in less market activity in
interest rate derivatives. Trading volumes in the Eurex segment across all product groups reached
1,861.4 million contracts in the 2020 financial year (2019: 1,947.1 million).
The offer and trading in ESG-specific derivatives developed well in the reporting period, particularly for
Euro STOXX ESG derivatives. Here the trading volume for the full year passed the 1 million contract
mark for the first time. There was also much greater interest in new products featuring exchange-traded
forex derivatives (FX-Futures), primarily FX-Futures on the euro/US dollar rate.
16
36
Deutsche Börse Group | Annual report 2020
Executive and Supervisory Boards
Management report | Report on economic position
Financial statements
Notes
Further information
The sharp rise in volatility in the first quarter of 2020 also led to an increase in collateral deposited with
Eurex Clearing. The resulting net revenue rose accordingly.
Growth in clearing of OTC derivatives continued in financial year 2020. The average outstanding
notional volume again beat the previous year’s figure by 43 per cent, which means that Eurex Clearing
has a global market share of 17.5 per cent in euro-denominated OTC interest rate derivatives (2019:
14.5 per cent). By refining the incentive programmes for transferring interest rate derivative portfolios to
Eurex Clearing, customers are now supported in an even more purposeful way when migrating their
positions to the EU-27.
EEX (commodities) segment
EEX (commodities) segment: key indicators
FINANCIAL KEY FIGURES
Net revenue
Power spot
Power derivatives
Gas
Other (incl. connectivity, member fees and admission allowance)
Operating costs
EBITDA
2020
€m
302.2
72.1
115.8
43.0
71.3
–174.3
127.0
2019
€m
289.3
70.9
105.1
42.8
70.5
–169.6
119.4
Change
%
4
2
10
0
1
3
6
In the EEX (commodities) segment, Deutsche Börse Group reports on trading activities on EEX Group's
platforms in Europe, Asia and North America. The EEX Group operates marketplaces and clearing
houses for energy and commodity products, connecting more than 750 participants around the world.
The product portfolio comprises contracts on energy, environmental, freight and agricultural products, as
well as metals. EEX Group’s most important revenue drivers are the power spot and derivatives markets,
and the gas markets.
The EEX Group increased its trading volume in the spot power market by 4 per cent in 2020. Volumes
in the intra-day segment rose by 21 per cent year-on-year, with increases in all market areas. The day-
ahead segment was stable compared to the previous year. Intra-day and day-ahead products for four
Skandinavian countries were added to the spot market portfolio towards the middle of the year. The
introduction of new incentive schemes for market participants in power spot markets reduced net
revenue growth in the reporting year.
Volume growth on global power derivatives markets, the main net revenue driver for the EEX Group,
continued with a year-on-year increase of 11 per cent. Trading in power derivatives is being expanded
continuously and now offers comprehensive geographic coverage of 20 European market regions and
additionally the Japanese market, which was launched in May 2020. The volume of power derivatives
traded in Europe passed the mark of 4,000 TWh for the first time in 2020. Whereas the German,
French and Hungarian markets made the greatest contribution to growth in absolute terms, volumes on
the US market declined, which is primarily due to lower hedging requirements as a result of reduced
industrial production.
17
37
Deutsche Börse Group | Annual report 2020
Executive and Supervisory Boards
Management report | Report on economic position
Financial statements
Notes
Further information
Trading volume on the gas markets fell year-on-year by 5 per cent. This is partly a result of lower
demand due to the impact of the Covid-19 pandemic, with a lower total market volume on the spot
markets. At the same time, greater competition on the gas derivatives markets, particularly in the
Netherlands, led to trading volume changes. Despite these conditions, the EEX was able to increase its
market shares in the gas spot market and defend its position as Europe’s leading gas spot exchange in
2020.
360T (foreign exchange) segment
360T (foreign exchange) segment: key indicator
FINANCIAL KEY FIGURES
Net revenue
Trading
Other (incl. connectivity and member fees)
Operating costs
EBITDA
2020
€m
101.5
81.9
19.6
–53.9
47.6
2019
Change
€m
92.1
76.9
15.2
–57.7
34.4
%
10
7
29
–7
38
In the 360T (foreign exchange) segment, Deutsche Börse Group manages its foreign exchange trading
business, which takes place on the platforms provided by its subsidiaries 360 Treasury Systems AG and
360TGTX Inc. Net revenue in the 360T segment is driven mainly by the trading activities of institutional
investors, banks and internationally active companies, and the provision of liquidity by so-called liquidity
providers. During the year under review, the segment generated 81 per cent of its revenue from foreign
exchange trading and 19 per cent from the provision of other services.
In the reporting year, the market environment in the 360T segment was determined by strongly
fluctuating volatility, a varying risk appetite on the part of investors, restrictions due to Covid-19
lockdowns and the resulting impact on trading volumes. After an exceptionally strong first quarter
marked by the outbreak of the Covid-19 pandemic and the ensuing high market volatility with high
trading volumes, the following two quarters saw less trading activity on the back of a much less volatile
and more risk-averse market, which was also affected by restrictions. Over the course of the fourth
quarter the market recovered significantly compared to the prior quarters, based on movements in key
currency pairs.
Furthermore, 360T was able to boost growth in trading volumes by winning and connecting new
customers to the platform, particularly in the USA and EMEA. This resulted in growth being recorded
across all product groups, with the total average daily trading volume up by 5 per cent to around €87
billion. 360T also set new records with an average daily trading volume of €109 billion in March 2020.
Drivers of net revenue growth in particular were an increase in swap transactions, the 360TGTX
business and solid growth in market data and connectivity.
18
38
Deutsche Börse Group | Annual report 2020
Executive and Supervisory Boards
Management report | Report on economic position
Financial statements
Notes
Further information
The Eurex FX market also expanded further, despite the global events mentioned above. Especially Open
Interest and the average daily trading volume reached new highs in 2020. A total of more than 600,000
contracts were traded (2019: around 96,300), with a new daily record of 130,000 contracts in June
2020. Average monthly Open Interest rose year-on-year in the reporting period by around 1,250 per
cent (from USD 320 million 2019 to USD 4.8 billion). To further support this positive trend Eurex
introduced European-style FX options in the second half of the year, as well as connecting numerous
new clearing members, liquidity providers and trading participants and activating them for trading and
clearing.
In addition to the success of the Eurex exchange with listed FX derivatives, Eurex Clearing is seeing
increasing demand for its OTC FX clearing service. Increasingly more customers are interested and are
partly already in the process of being connected to the service.
Xetra (cash equities) segment
Xetra (cash equities) segment: key indicators
FINANCIAL KEY FIGURES
Net revenue
Trading and clearing
Listing
Xetra Data
Other (incl. connectivity and member fees)
Operating costs
EBITDA
1) Previous year adjusted.
2020
€m
391.7
203.3
18.9
125.7
43.8
–158.8
258.7
20191)
Change
€m
329.3
151.4
19.9
111.7
46.3
–148.6
186.5
%
19
34
–5
13
–5
5
42
In the Xetra segment (cash equities), Deutsche Börse Group brings together its cash market trading
venues (Xetra®, the Frankfurt Stock Exchange, and Tradegate). Besides trading and clearing services
income, the segment generates revenue from the ongoing listing of companies’ securities and exchange
admissions, the marketing of trading data, connecting clients to trading venues, and from services
provided to partner exchanges.
The significant earnings increase in the Xetra segment in the reporting year 2020 was mainly due to
higher trading and clearing revenues as a result of more trading activity. The volume of the order book
increased year-on-year in almost every month, rising overall by 37 per cent to €2.1 trillion. Higher
revenues were particularly due to the increased volatility compared to the previous year, the recalibration
of share portfolios by institutional investors and much higher turnover in exchange-traded funds (ETFs).
Trading volumes in these securities rose to a new annual record of €250 billion, which was 70 per cent
up year-on-year. The strong increase in activity on part of the private investors was an additional driver
during the entire reporting period. Competing with other pan-European trading venues, Xetra further
strengthened its position as the reference market for trading in DAX constituents, increasing its market
share to 73 per cent (2019: 71 per cent).
19
39
Deutsche Börse Group | Annual report 2020
Executive and Supervisory Boards
Management report | Report on economic position
Financial statements
Notes
Further information
A total of seven initial public offerings (IPOs) took place in 2020 (2019: 4) as well as two new listings.
By far the largest issue volume was recorded by the IPO of Hensoldt AG at €400 million. The share
price of Siemens Energy AG when it was listed corresponded to a market capitalisation of approximately
€16 billion.
Undiminished interest in gold as an investment asset again led to new records for Xetra-Gold®, a bearer
bond backed by physical gold. Thus gold reserves increased to 217 tonnes as at the end of the financial
year (2019: 203 tonnes) – representing some €11 billion – and an order book turnover of €6 billion
was reported (2019: €3.4 billion). Xetra-Gold thus remains the leading security in Europe backed by
physical gold and the best-selling security among Xetra’s exchange traded commodities (ETCs).
The disposal of Regulatory Services GmbH, the regulatory reporting hub of Deutsche Börse Group, to
MarketAxess Holdings, Inc. was completed on 30 November 2020. Income of €19.8 million from this
transaction was recognised in net revenue for Xetra Data.
The business of Tradegate AG Wertpapierhandelsbank grew very strongly in 2020 thanks to much higher
activity on the part of the private investors, and its equity method measurement had a positive impact on
the result from financial investments, taking it to €25.8 million in total.
Clearstream (post-trading) segment
Clearstream (post-trading) segment: key indicators
FINANCIAL KEY FIGURES
Net revenue
Custody
Settlement
Net interest income from banking business
Collateral management
Third-party services
Other (incl. connectivity, account maintenance)
Operating costs
EBITDA
1) Previous year adjusted
2020
€m
827.2
417.5
114.8
100.5
76.9
23.8
93.7
–367.3
458.0
20191)
Change
€m
842.7
391.7
82.2
188.2
78.0
24.3
78.3
–343.4
497.5
%
–2
7
40
–47
–1
–2
20
7
–8
Deutsche Börse Group’s settlement and custody activities are reported under the Clearstream (post-
trading) segment. In providing the post-trade infrastructure for Eurobonds and other markets,
Clearstream is responsible for the issuance, settlement, management and custody of securities from
more than 50 markets worldwide. Net revenue in this segment is driven mainly by the volume and value
of securities under custody, which determines the deposit fees. The settlement business depends
primarily on the number of settlement transactions processed by Clearstream via stock exchanges as well
as over the counter (OTC). This segment also contains Clearstream’s net interest income from banking
business.
20
40
Deutsche Börse Group | Annual report 2020
Executive and Supervisory Boards
Management report | Report on economic position
Financial statements
Notes
Further information
Since the start of the financial year the performance of Clearstream services in securities financing and
securities management – the former GSF (collateral management) segment – has now been fully
allocated to the Clearstream segment.
Issuance activity on the bond market increased significantly driven by corporates as well as the public
sector due to growing financing needs during financial year 2020.This development led to a higher
average value of assets under custody in the central securities depository (CSD) and international central
securities depository (ICSD). In June, said figure surpassed the €12 trillion mark for the first time.
Much higher trading volumes resulting from higher average volatility also pushed the number of
settlement transactions up by 27 per cent – with a record volume of 7.5 million transactions in March –
which had a significantly positive impact on net revenue in the Clearstream segment.
The net interest income from banking business was influenced by falling or exceptionally low interest
rates in the reporting year. The US central bank Fed cut its prime rate in the US to 0.00 to 0.25 per cent
in mid-March, which in turn had a negative impact on interest income on deposits in US dollars. Even
the introduction of a cash handling fee of 30 basis points on US dollar-denominated deposits could only
partly offset the interest rate effects.
Average outstanding volumes in collateral management and securities lending grew significantly in the
reporting year. Whilst net revenue in collateral management (Repo und Tri-Party Collateral Service) are
directly related to the volumes outstanding, central banks’ money market measures lead to ample
liquidity in the market thus putting lending fees under pressure. Ultimately this effect more than offset
the positive performance of net revenue from collateral management.
21
41
Deutsche Börse Group | Annual report 2020
Executive and Supervisory Boards
Management report | Report on economic position
Financial statements
Notes
Further information
IFS (investment fund services) segment
IFS (investment fund services) segment: key indicators
FINANCIAL KEY FIGURES
Net revenue
Custody
Settlement
Fund distribution
Other (incl. connectivity, order routing and reporting fees)
Operating costs
EBITDA
2020
€m
232.8
87.4
72.0
14.4
59.0
–117.5
115.2
2019
€m
183.1
76.7
53.6
-
52.8
–110.3
72.8
Change
%
27
14
34
-
12
7
58
In the IFS (investment fund services) segment, Deutsche Börse Group reports the order routing and
settlement activity and custody volumes of mutual, exchange-traded, and alternative funds processed by
Clearstream. Clients can settle and manage their entire fund portfolio via Clearstream’s Vestima® fund
processing platform. The new Fund Distribution unit also covers the fund platform business of
Clearstream Fund Centre, a merger of the existing Clearstream Fund Desk with the recently acquired
UBS Fondcenter AG business. Net revenue in the IFS segment is largely a function of the value of assets
under custody and the number of orders and transactions processed.
The IFS segment can look back at a successful business year 2020. Fund settlement as well as custody
activity partly gained significantly with regard to volumes, which are considered to be the main driver for
net revenue growth. This results on one hand from a steadily growing client base, on the other hand
from strongly active market participants due to market conditions. Establishing Vestima as a platform
solution to manage this fund business efficiently from a single source is key to IFS’ success.
Clearstream Fund Desk – a service for fund distribution support founded in the course of the Swisscanto
Funds Centre Ltd. Integration – achieved positive growth. Clearstream Australia Limited, former Ausmaq
Limited, the specialist managed funds services business which was acquired from National Australia
Bank Limited in May 2019, shows the same positive development.
The acquisition of a majority stake in UBS’s fund distribution platform Fondcenter AG is a further
important milestone in the reporting year. Since 30 September 2020, the newly combined and
separately reported business of Clearstream Fund Centre is the centre of excellence for global fund
distribution services within Deutsche Börse Group with assets under administration of around €290
billion. It is considered to be one of the leading market providers in the world. Fund distributors now
have access to contracts covering more than 70,000 funds globally. Usually resource-intensive
distribution support services such as fee management and research as well as the administration of fund
data and documentation can be streamlined in an efficient way by using Clearstream Fund Centre’s
services. Alternatively, they can also be outsourced to Clearstream entirely. Asset managers benefit from
Clearstream’s global client network which brings additional scope and efficiency in the distribution of
investment funds.
22
42
Deutsche Börse Group | Annual report 2020
Executive and Supervisory Boards
Management report | Report on economic position
Financial statements
Notes
Further information
Qontigo (index and analytics business) segment
Qontigo (index and analytics business) segment: key indicators
FINANCIAL KEY FIGURES
Net revenue
ETF licences
Exchange licences
Other licences
Analytics
Operating costs
EBITDA
2020
€m
248.1
34.7
34.7
105.6
73.1
–123.8
124.1
2019
€m
190.2
38.7
31.5
94.2
25.8
–101.0
89.2
Change
%
30
–10
10
12
183
23
39
In the Qontigo (index and analytics business) segment, Deutsche Börse Group reports on the
development of its subsidiary, Qontigo, which was formed through the merger of the index business
STOXX and DAX with Axioma in September 2019. In the index business, Qontigo offers issuers an
extensive range of indices, thus providing these issuers with a wealth of opportunities to create financial
instruments for even the most diverse investment strategies. While the ETF licence revenues depend on
the volume invested in exchange-traded index funds (ETFs) on STOXX® and DAX® indices, the exchange
licence revenues are derived mainly from the volume traded in index derivatives on STOXX and DAX
indices on Eurex. Licence fees from structured products are shown as part of other licence fees. In
Analytics, Qontigo offers its clients risk analytics and portfolio-management software.
European stock markets and the corresponding indices were buffeted in 2020 by a strong outflow of
investment capital as the Covid-19 pandemic unfolded, the hope for a rapid economic recovery and the
prospect of the development of a vaccine. Average assets under management in ETFs on STOXX and
DAX indices fell by 7 per cent in the reporting year, even though significant inflows were recorded in the
fourth quarter of 2020. As a result, the ETF licence revenues also fell year-on-year. Exchange licences
were up by 10 per cent due to a strong first quarter in index derivatives trading and a moderate
performance for the remainder of the year. Other licence revenues benefitted from the growing number of
licenced products and on average higher back billing effects.
After a strong start to the year in the analytics business, the restrictions imposed to contain the Covid-19
pandemic made sales and implementation activities difficult. Since net revenue in this area depends
mainly on the order value and a significant part of revenue is tied to the date of the transaction (rather
than distributing revenue over the course of the contract), the restrictions in connection with Covid-19
caused revenue to fluctuate or decline. Axioma’s net revenue is only shown pro rata for 2019 as the
takeover of Axioma was closed on 13 September 2019.
23
43
Deutsche Börse Group | Annual report 2020
Executive and Supervisory Boards
Management report | Report on economic position
Financial statements
Notes
Further information
Development of profitability
Deutsche Börse Group’s return on shareholders’ equity expresses the ratio of net income after taxes to
average equity available to the Group during the course of 2020. In the reporting year, it was at 18.1
per cent (2019: 19.3 per cent). Adjusted for the exceptional items described in Results of operations,
the return on equity was 20.2 per cent (2019: 21.3 per cent).
Financial position
Cash flow
Cash flows from operating activities excluding CCP positions
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Cash and cash equivalents at end of period
Other cash and bank balances
2020
€m
1,523.0
1,412.0
– 787.7
– 254.2
2,506.7
1,467.3
2019
€m
1,030.6
926.1
– 722.9
99.4
2,145.5
888.1
Cash and cash equivalents at Deutsche Börse Group, i.e. its liquidity, comprise cash and bank balances
– to the extent that these do not result from reinvesting current liabilities from cash deposits by market
participants – as well as receivables and liabilities from banking business with an original maturity of
three months or less. The increase in Group liquidity, which is reflected in significantly higher cash and
bank balances of €2,506.7 million (31 December 2019: €1,467.3 million), mainly reflects cash
inflows from operating activities, offset principally by cash outflows for acquisitions.
In the 2020 financial year, Deutsche Börse Group generated a positive cash flow of €370.0 million
(2019: €302.6 million). The information value of Deutsche Börse Group’s cash flow is limited since the
CCP positions which are subject to significant fluctuations on the reporting date, as well as the inflows
and outflows from the banking business, result in distortions. Adjusted for these effects of
€111.0 million (31 December 2019: €104.5 million), the cash flow in 2019 can essentially be
explained as follows:
Cash flow from operating activities was €1,523.0 million (2019: €1,030.6 million) before changes in
CCP positions on the reporting date. Cash flow from operating activities stemmed mainly from the higher
net profit of €1,125.1 million (2019: €1,035.4 million) and the positive year-on-year changes in
working capital (2019: €82.8 million; 2019: €-273.0 million).
Cash outflows for investing activities came to €787.7 million in 2020 (2019: €722.9 million), and
stemmed largely from the acquisitions of Fondcenter AG and Quantitative Brokers LLC, which resulted in
cash outflows of €448.5 million, compared with a cash outflow of €666.4 million in 2019, primarily for
the acquisition of Axioma. Investment in intangible assets, property, plant and equipment of
€195.4 million was slightly up on the year (€184.7 million).
24
44
Deutsche Börse Group | Annual report 2020
Executive and Supervisory Boards
Management report | Report on economic position
Financial statements
Notes
Further information
Cash outflow for financing activities came to €254.2 million in 2020 (2019: inflow of €99.4 million). A
bond issued by Clearstream Banking AG resulted in a cash inflow of €350 million. The dividend of
€531.9 million paid in 2020 was higher than the previous year €495.0 million), which is due to the
year-on-year increase in the dividend per share from €2.70 to €2.90.
The positive cash flow from operating activities, sufficient credit lines and its flexible management and
planning system mean that Deutsche Börse Group was adequately supplied with liquidity in 2020.
For further details of cash flow, see the consolidated cash flow statement and Note 20 to the
consolidated financial statements.
Liquidity management
Deutsche Börse Group primarily meets its operating liquidity requirements from internal financing, i.e. by
retaining generated funds – with a view towards maintaining sufficient liquidity in order to be able to
meet all of the Group's payment obligations when due. An intra-Group cash pool is used for pooling
surplus cash as far as regulatory and legal provisions allow. All of the Group’s cash investments are
short-term, in order to ensure rapid availability, and are largely secured by liquid bonds from prime-rated
issuers. Moreover, Deutsche Börse AG has access to external sources of financing, such as bilateral and
syndicated credit lines, as well as a commercial paper programme (see note 23 to the consolidated
financial statements for details of financial risk management). In recent years, Deutsche Börse AG has
leveraged its access to the capital markets to issue corporate bonds in order to meet its structural
financing needs.
Debt instruments issued by Deutsche Börse AG (outstanding as at 31 December 2020)
Type
Issue volume
ISIN
Term to
Maturity
Coupon
(p.a.)
Listing
Fixed-rate bearer bond
€600 m
DE000A1RE1W1
10 years October 2022
2.375% Luxembourg/Frankfurt
Fixed-rate bearer bond
€500 m
DE000A1684V3
10 years October 2025
1.625% Luxembourg/Frankfurt
Fixed-rate bearer bond
€600 m
DE000A2LQJ75
10 years March 2028
1.125% Luxembourg/Frankfurt
Fixed-rate bearer bond
(hybrid bond)
€600 m
DE000A289N78
Call date
7 years/final
maturity in
27 years
June 2027/
June 2047
1.250%
(until call
date)
Luxembourg/Frankfurt
25
45
Deutsche Börse Group | Annual report 2020
Executive and Supervisory Boards
Management report | Report on economic position
Financial statements
Notes
Further information
Capital management
The Group’s clients generally expect it to maintain conservative interest coverage and leverage ratios,
and hence to achieve a good credit rating.
The Group is committed to achieving the minimum financial risk profile that is consistent with an AA
rating in accordance with S&P Global Ratings methodology. Furthermore, the company endeavours to
maintain the strong AA credit rating of its subsidiaries Clearstream Banking S.A. and Clearstream
Banking AG, in order to ensure the long-term success of its Clearstream securities settlement and
custody segment. The activities of the Eurex Clearing AG subsidiary also require Deutsche Börse AG to
have and maintain a strong credit quality.
To this end, the Group aims for the following relevant key performance indicators:
◼ Net debt to EBITDA ratio: no more than 1.75
◼ Free funds from operations (FFO) to net debt: equal to or greater than 50 per cent
◼ Interest cover ratio: at least 14
◼ Tangible equity (for Clearstream Banking S.A.): total of at least €1.100 million
When calculating these key performance indicators, Deutsche Börse Group closely follows the
methodology applied by S&P Global Ratings:
◼ To determine the rating relevant EBITDA, reported EBITDA is adjusted by the result from strategic
investments, as well as by unfunded pension obligations. The rating relevant EBITDA for 2020 was
€1,852 million.
◼ In order to determine the rating relevant FFO, interest and tax expenses are deducted from the rating
relevant EBITDA. The rating relevant FFO in 2020 amounted to €1,420 million.
◼ The rating relevant Group’s net debt is reconciled by first deducting 50 per cent of the hybrid bond, as
well as the surplus cash as at the reporting date, from gross debt (i.e. from interest-bearing liabilities).
Liabilities from operating leases and unfunded pension obligations are then added. The rating relevant
net debt in 2020 amounted to €1,861 million.
◼ The parameters used to determine the rating relevant interest expenses include interest expenses for
financing Deutsche Börse Group, less interest expenses of Group entities which are also financial
institutions – including Clearstream Banking S.A., Clearstream Banking AG, and Eurex Clearing AG.
Interest expenses incurred which are not related to Group financing are not included in the calculation
of interest expenses. Only 50 per cent of the hybrid bond is counted towards interest expenses. The
rating relevant interest expenses totalled €53 million in 2020.
Deutsche Börse AG has declared its intention not to reduce the tangible equity (equity less intangible
assets) of Clearstream Banking S.A. below €1,100 million. Clearstream Banking S.A. exceeded this
threshold during the year under review, with a figure of €1,461 million.
26
46
Deutsche Börse Group | Annual report 2020
Executive and Supervisory Boards
Management report | Report on economic position
Financial statements
Notes
Further information
The following table "Relevant parameters" illustrates the calculation methodology and shows the values
for the reporting year.
Relevant key performance indicators according to the adjusted calculation
method
Net debt / EBITDA
Free funds from operations (FFO) / net debt
%
Interest coverage ratio
Target figures
2020
≤ 1.75
≥ 50
≥ 14
1.0
76
35
Tangible equity of Clearstream Banking S.A. (as at the reporting date)
€m
≥ 1,100
1461
S&P Global Ratings bases the calculation of key performance indicators on the corresponding weighted
average of the reported or expected results of the previous, the current and the following reporting
period. To ensure the transparency of the key performance indicators, the Group reports them based on
the respective current reporting period.
Dividends and share buy-backs
Deutsche Börse Group generally aims to distribute dividends equivalent to between 40 and 60 per cent
of adjusted net profit for the period attributable to the shareholders of Deutsche Börse AG . Within this
range, the Group manages the actual payout ratio mainly relative to the business performance and
based on continuity considerations. In addition, the company plans to invest the remaining available
funds primarily in the Group’s complementary external development. Should the Group not be able to
invest these funds, additional distributions, particularly in the form of share buy-backs, would be another
possible use for them.
For the 2020 financial year, Deutsche Börse AG is proposing that the Annual General Meeting resolve to
pay a dividend of €3.00 per no-par value share (2019: €2.90). This dividend is equivalent to a
distribution ratio of 46 per cent of adjusted net profit for the period, attributable to shareholders of
Deutsche Börse AG, adjusted for the non-recurring items described in the Results of operations
(2019: 48 per cent, also adjusted). Based on 183.5 million no-par shares with dividend rights, this
would result in a total dividend payment of €550.6 million (2019: €531.9 million). The number of
shares with dividend rights is produced by deducting 6.5 million treasury shares from the ordinary share
capital of 190.0 million shares.
27
47
Deutsche Börse Group | Annual report 2020
Executive and Supervisory Boards
Management report | Report on economic position
Financial statements
Notes
Further information
Credit ratings
Credit ratings
Deutsche Börse AG
S&P Global Ratings
Clearstream Banking S.A.
Fitch Ratings
S&P Global Ratings
Clearstream Banking AG
S&P Global Ratings
Long-term
Short-term
AA
AA
AA
AA
A– 1+
F1+
A– 1+
A– 1+
Deutsche Börse AG regularly has its credit quality reviewed by S&P Global Ratings, while Clearstream
Banking S.A. is rated by Fitch Ratings and S&P Global Ratings, and Clearstream Banking AG by S&P
Global Ratings.
On 05 August 2020, Fitch Ratings affirmed the AA credit rating of Clearstream Banking S.A. with a
stable outlook. The rating reflects Clearstream Banking’s leading position in the post-trade business and
its diligent liquidity management, as well as its impeccable capitalisation.
In 2020, S&P Global Ratings left the AA credit ratings of Deutsche Börse AG and Clearstream Banking
S.A. unchanged. Deutsche Börse AG's rating reflects the assumption that the Group will continue its
growth strategy. S&P Global Ratings confirmed the AA credit rating on 19 November 2020 in the course
of the intended takeover of Institutional Shareholder Services, Inc. Clearstream Banking S.A.'s rating
reflects its strong risk management, minimal debt levels and strong position on the international capital
markets, especially through its international custody and transaction business.
On 23 November 2020 S&P Global Ratings gave Clearstream Banking AG a AA credit rating with a
stable outlook. The rating reflects its strong position in post-trading and its core importance in the
Clearstream Group.
As at 31 December 2020, Deutsche Börse AG was one of only two DAX-listed companies awarded an
AA rating by S&P Global Ratings.
28
48
Deutsche Börse Group | Annual report 2020
Executive and Supervisory Boards
Management report | Report on economic position
Financial statements
Notes
Further information
Net assets
Material changes to net assets are described below; the full consolidated balance sheet is shown in the
consolidated financial statements.
Consolidated balance sheet (extract)
ASSETS
Non-current assets
thereof intangible assets
thereof goodwill
thereof other intangible assets
thereof financial assets
thereof financial assets measured at amortised cos
davon erfolgsneutral zum beizulegenden Zeitwert bewertete Beteiligungen
thereof financial instruments held by central counterparties
Current assets
thereof financial instruments held by central counterparties
thereof restricted bank balances
thereof other cash and bank balances
EQUITY AND LIABILITIES
Equity
Liabilities
thereof non-current liabilities
thereof financial instruments held by central counterparties
thereof financial liabilities measured at amortised cost
thereof deferred tax liabilities
thereof current liabilities
thereof financial instruments held by central counterparties
thereof financial liabilities measured at amortised cost
thereof cash deposits by market participants
31 Dec 2020
€m
31 Dec 2019
€m
152,767.7
137,165.3
14,596.7
11,706.9
5,723.2
3,957.6
1,255.4
8,086.0
997.5
111.4
5,008.4
3,470.5
1,040.9
6,027.6
698.7
66.3
6,934.7
5,234.2
138,171.0
125,458.4
80,768.1
78,301.5
38,420.1
29,988.7
1,467.3
888.1
152,767.7
137,165.3
6,556.1
6,110.6
146,211.6
131,054.7
11,031.4
6,934.7
2,637.1
216.7
8,610.4
5,234.2
2,627.2
226.3
135,180.2
122,444.3
80,673.1
77,411.5
15,018.6
14,432.1
38,188.8
29,755.8
Deutsche Börse Group’s total assets increased year on year by 11 per cent. The increase in intangible
assets resulted primarily from the acquisitions of Fondcenter and Quantitative Broker. This particularly
gave rise to significantly higher goodwill.
Much higher cash, restricted bank balances and financial instruments held by central counterparties as
at the reporting date were also responsible for the rise.
29
49
Deutsche Börse Group | Annual report 2020
Executive and Supervisory Boards
Management report | Report on economic position
Financial statements
Notes
Further information
Group equity rose by 7 per cent compared with the previous year. This was mainly due to the net profit
for the reporting year 2020, less the dividend payment for the previous financial year.
Deutsche Börse Group invested a total of €195.4 millionin the reporting year (2019: €184.7 million) in
intangible assets and property plant and equipment (capital expenditure, CAPEX). The Group’s largest
investments were in the Clearstream and Eurex segments.
Working capital
Working capital comprises current assets less current liabilities, excluding technical closing-date items.
Current assets, excluding technical closing-date items, amounted to €1,289.9 million (2019:
€898.4 million). As Deutsche Börse Group collects fees for most of its services on a monthly basis, the
trade receivables of €616.6 million included in current assets as at 31 December 2020 were relatively
low compared with net revenue (31 December 2019: €447.3 million). The significant increase in trade
receivables was particularly due to the acquisition of Fondcenter AG, which led to a similar increase in
trade payables. The current liabilities of the Group, excluding technical closing-date items, amounted to
€1,374.5 million (2019: €1,072.9 million, excluding technical closing-date items). The Group therefore
had slightly negative working capital of €84.6 million at year-end (2019: €174.5 million).
Technical closing-date items
The “financial instruments of the central counterparties” item relates to the function performed by Eurex
Clearing AG and European Commodity Clearing AG: since they act as the central counter parties for
Deutsche Börse Group’s various markets, their financial instruments are carried in the balance sheet at
their fair value. The financial instruments of the central counterparties are described in detail in the risk
report and in notes 12 and 23 to the consolidated financial statements.
Market participants linked to the Group’s clearing houses partly provide collateral in the form of cash
deposits, which are subject to daily adjustments. The cash deposits are generally invested on a secured
basis overnight by the central counterparties and reported in the balance sheet under “restricted bank
balances”. The total value of cash deposits at the reporting dates relevant for the reporting period
(31 March, 30 June, 30 September and 31 December) varied between €38.2 billion and €62.2 billion
(2019: between €29.6 billion and €32.3 billion).
Value added: breakdown of company performance
Value added is calculated by subtracting depreciation and amortisation as well as external costs from
the company performance. In 2020, the value added by Deutsche Börse Group amounted to
€2,400.7 million (2019: €2,194.8 million). The breakdown shows that large portions of the generated
value added flow back into the economy: 24 per cent (€577.2 million) benefit shareholders in the form
of dividend payments, while 34 per cent (€822.9 million) was attributable to staff costs in the form
of salaries and other remuneration components. Taxes accounted for 17 per cent (€403.1 million), while
2 per cent (€49.6 million) was attributable to external creditors. The 23 per cent value added that
remained in the company (€547.9 million) is available for investments in growth initiatives, among other
things.
30
50
Deutsche Börse Group | Annual report 2020
Executive and Supervisory Boards
Management report | Report on economic position
Financial statements
Notes
Further information
Overall assessment of the economic position by the Executive Board
The main factor affecting financial year 2020 was the outbreak of the Covid-19 pandemic, its global
economic impact and the challenges of dealing with the virus and its containment. In an extraordinarily
volatile market environment the Group saw significant earnings increases in the first quarter of 2020,
whereas markets became increasingly subdued over the remainder of the year and prime rates fell to
new lows worldwide. Secular net revenue nevertheless rose by 5 per cent across the Group as planned.
Cyclical effects and consolidation each contributed another 2 per cent to net revenue growth, increasing
net revenue overall by 9 per cent. Adjusted operating costs were up by 7 per cent. Main contributing
factor was the consolidation of companies acquired during the course of 2020. On an adjusted basis the
Group increased net profit attributable to Deutsche Börse AG shareholders by 9 per cent to €1,204.3
million, which was also in line with the Executive Board's expectations.
Based on this, the Executive Board considers that Deutsche Börse Group’s financial position remained
very solid during the reporting period. The Group generated high operating cash flows as in previous
years. Deutsche Börse was able to further improve the ratio of net debt to EBITDA at Group level: The
figure of 1.0 was significantly below the target of 1.75.
Deutsche Börse AG has offered its shareholders increasing dividends for years – and the 2020 financial
year is no exception. A proposed dividend of €3.00 (2019: €2.90) is 3 per cent higher than the
distribution to shareholders in the previous year. As a result of the improvement in earnings the
distribution ratio fell from 48 per cent in the previous year to 46 per cent in the year under review
(adjusted in each case for exceptional items) and was thus in line with the Executive Board's target
range of 40 to 60 per cent.
31
51
Deutsche Börse Group | Annual report 2020
Executive and Supervisory Boards
Management report | Report on post-balance sheet date events
Financial statements
Notes
Further information
Deutsche Börse Group: five-year overview
Consolidated income statement
Net revenue
thereof treasury result from banking business
Operating costs (excluding depreciation, amortisation
and impairment losses)
Earnings before interest, tax, depreciation and
amortisation (EBITDA)
Depreciation, amortisation and impairment losses
Net profit for the period attributable to
Deutsche Börse AG shareholders
Earnings per share (basic)
Consolidated cash flow statement
2016
2017
2018
2019
2020
€m
€m
2,388.7
2,462.3
2,779.7
2,936.0
3,213.8
84.0
132.6
204.5
247.7.
196.6
€m
–1,186.4
–1,131.6
–1,340.2
–1,264.5
–1,368,7
€m
€m
€m
€
1,239.2
1,528.5
1,443.7
1,678.2
1,869.4
–131.0
–159.9
–210.5
–226.2
–264.3
722.1
874.3
824.3
1,003.9
1,087.8
3.87
4.68
4.46
5.47
5.93
Cash flows from operating activities
€m
1,621.4
1,056.2
1,298.2
926.1
1,412.0
Consolidated balance sheet
Non-current assets
Equity
Financial liabilities measured at amortised cost
Performance indicators
Dividend per share
Dividend payout ratio
Employees (average annual FTEs)
Tax rate
Return on shareholders’ equity (annual average)5)
Deutsche Börse shares
Year-end closing price
Average market capitalisation
Rating key figures
Net debt / EBITDA
€m
€m
€m
€
%
%
%
11,938.7
10,883.7
15,642.0
11,706.9
14,596.7
4,623.2
2,284.7
4,959.4
1,688.41)
4,963.4
6,110.6
6,564.0
2,283.2
2,286.2
2,637,1
2.35
543)
4,731
27
193)
2.45
533)
5,183
273)
184)
2.70
493)
5,397
273)
213)
2.90
483)
5,835
263)
21 3)
3.002)
463)4)
6,522
263)
20
€
€bn
77.54
14.0
96.80
104.95
140.15
139,25
17.2
21.5
24.0
27.7
Free Funds from Operations (FFO) / net debt
%
1.2
58
1.1
59
1.1
69
1.0
79
1.0
76
1) Bonds that will mature in the following year are reported under “other current liabilities” (2014: €139.8 million, 2017: €599.8 million).
2) Proposal to the Annual General Meeting 2021
3) Adjusted for exceptional effects; please refer to the consolidated financial statements for the respective financial year for adjustment details.
4) Amount based on the proposal to the Annual General Meeting 2021
5) Net profit for the period attributable to Deutsche Börse AG shareholders / average shareholders’ equity for the financial year based on the quarter-end balance of
shareholders’ equity
Report on post-balance sheet date events
Deutsche Börse AG has successfully completed the acquisition of Institutional Shareholder Services Inc.,
Rockville, USA (ISS) a governance, ESG data and analytics provider on 25 February 2021. The closing
took place after the receipt of all necessary regulatory approvals. The transaction, announced in late
2020, is based on a valuation of US$2,275 million for 100 percent of the business cash and debt free.
For more details, see section Acquisitions.
To partially finance this acquisition, Deutsche Börse AG successfully placed senior bonds in the amount
of €1 billion on 15 February 2021, divided into two tranches with maturities of five and ten years. The
five-year bond has a negative yield of – 0.19 percent and a coupon of 0 percent, and the ten-year bond
has a yield of 0.19 percent and a coupon of 0.125 percent. In connection with the bond issues,
Standard & Poor's has confirmed Deutsche Börse AG’s “AA” credit rating with a stable outlook.
32
52
Deutsche Börse Group | Annual report 2020
Executive and Supervisory Boards
Management report | Combined non-financial statement
Financial statements
Notes
Further information
Combined non-financial statement
This combined non-financial statement for Deutsche Börse Group and the parent company Deutsche
Börse AG is integrated into the combined management report; it fulfils the provisions of sections 289b–e
and 315b–c of the Handelsgesetzbuch (HGB, German Commercial Code). It is also in accordance with
the standards (“Core” option) of the Global Reporting Initiative (GRI). A detailed overview of all GRI
indicators (GRI index) is available at www.deutsche-boerse.com > Sustainability > ESG ratings &
reporting > GRI. More detailed information that is referenced in the non-financial statement does not
form part of the statement itself. Provided no explicit statements are made for the parent company,
qualitative information within the meaning of the combined management report applies to Deutsche
Börse Group and the parent company Deutsche Börse AG. In some cases, quantitative details
concerning the parent entity are disclosed separately.
Deutsche Börse Group uses not only the financial figures outlined in the “Group management” section
for Group management, but also non-financial performance indicators – specifically, the availability of its
trading systems for the cash and derivatives markets and the share of women in executive positions. For
details regarding the targets pursued and the results achieved in the year under review, please refer to
the sections entitled “Social matters – systems availability” and “Corporate governance statement – target
figures for the proportion of female executives beneath Executive Board level”.
A materiality analysis comprising continuous analyses and assessments of relevant internal and external
stakeholders’ expectations and requirements is a key element of Deutsche Börse Group’s sustainability
strategy. This process is aimed at identifying the issues required to understand the Group’s business
performance, operating results, the situation of the company and the impact of its activities on non-
financial aspects. Thus, the Group is able to identify opportunities and risks in its core business activities
at an early stage and define concrete action areas on this basis. In 2020 an internal validation of the
previous action areas was carried out, which confirmed the results from 2018. Only the materiality of
the “Human Capital Development” area of activity was ranked higher by the internal stakeholders than in
the previous survey.
The combined non-financial statement outlines the objectives, actions, due diligence processes applied,
the involvement of the Group’s management and other stakeholders, as well as the concept outcomes
with respect to employee matters (see the “Employees” section), compliance (including combating
corruption and bribery), social matters and product matters.
As a service provider with a focus on electronic market infrastructure services, Deutsche Börse Group
engages in relatively little environmentally sensitive activity from a corporate ecology perspective; hence,
in this combined non-financial statement, no detailed report is provided in this respect. Nonetheless, the
Group feels an obligation towards the environment and to make careful use of natural resources.
Deutsche Börse Group has outlined its environmental policies in its code of business conduct. Indicators
for its environmental sustainability performance are available on its website: www.deutsche-
boerse.com > Sustainability > ESG rating & reporting > ESG indicators. Environmental topics are also
becoming more important for the structuring of individual products and services. Steps taken here are
described in the section “Product matters”. Deutsche Börse Group has also published a climate strategy
aligned with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).
33
53
Deutsche Börse Group | Annual report 2020
Executive and Supervisory Boards
Management report | Combined non-financial statement
Financial statements
Notes
Further information
The area of human and employee rights was identified as non-material for Deutsche Börse Group by its
stakeholders during the materiality analysis according to HGB and GRI, and is thus not included in the
non-financial statement. Nevertheless, active protection of human and employee rights is a key element
of Deutsche Börse Group’s corporate responsibility: the Group addresses this at various points along the
value chain. In addition, complying with human and employee rights is a key pillar of the Group’s
human resources policy. Specific topics (e.g. diversity) are discussed in the “Employees” section and on
the website www.deutsche-boerse.com > Sustainability > Our ESG profile > Employees > Guiding
principles. Deutsche Börse Group furthermore reports on sustainability in procurement management on
its website at www.deutsche-boerse.com > Sustainability > Our ESG profile > Procurement
management and is aware of its responsibility as a global company. It joined the UN Global Compact in
2009.
When the materiality analysis was carried out the stakeholders did not consider taxes to be material
either. Deutsche Börse is nonetheless aware of its responsibilities in this area and so reports voluntarily
on its tax strategy and handling of tax legislation in the section “Compliance – including combat against
corruption and bribery”.
As an international capital markets organiser, Deutsche Börse Group aims to build and grow market
participants’ trust in its market structures. As a responsible member of society, it also endeavours to use
the expertise it deploys for the successful operation of its core business in a way that enables it to
contribute to resolving social problems. In this context, Deutsche Börse Group wishes to set a good
example. Please refer to the “Fundamental information about the Group” section for a detailed
description of Deutsche Börse Group’s business model. Its sustainability strategy ”Acting with an eye to
the future” defines the Group’s understanding of entrepreneurial responsibility and guides its
operations.Please see the section entitled “Management approach for a Group-wide commitment to
sustainability”.
As a member of the UN Global Compact (UNGC) and the Sustainable Stock Exchanges initiative (SSE),
Deutsche Börse Group has committed itself to implementing the 17 Sustainable Development Goals
(SDGs) of the “2030 Agenda for Sustainable Development” set by the UN. An overview of Deutsche
Börse Group’s contribution to the corresponding targets can be found in the following “Overview: key
sustainability aspects” table.
34
54
Deutsche Börse Group | Annual report 2020
Executive and Supervisory Boards
Management report | Combined non-financial statement
Financial statements
Notes
Further information
Overview: key sustainability aspects
Relevant contents of the non-financial
statement according to section 289c
HGB1)
Business model
Action areas relevant to Deutsche
Börse Group
UN Sustainable Development Goals (SDGs)
covered by Deutsche Börse Group
▪
▪
▪
▪
Overview of Deutsche Börse Group
Objectives and strategies
Internal management
▪
▪
▪
Research and development activities
Mandatory aspects
Employee matters
▪
▪
▪
▪
▪
Staff development
COVID -19
Human resources strategy
Promoting diversity and inclusion
Employer attractiveness
Social matters
▪ Sustainable financial market initiatives
▪ Stable, transparent and fair markets
•
Systems availability
• Market transparency
•
Stable financial markets
▪
▪
▪
▪
Anti-corruption and bribery matters
Economic performance
Stakeholder engagement
▪ SDG 7 “Affordable and clean energy”
▪ SDG 8 “Decent work and economic
Brand management
growth”
▪ SDG 9 “Industry, innovation and
infrastructure“
▪ SDG 10 “Reduce inequalities“
▪ SDG 12 “Responsible consumption and
production“
▪ SDG 17 “Partnerships for the goals“
Human Capital Development
Human and employee rights
▪ SDG 4 “Quality education“
▪ SDG 5 “Gender equality“
▪ SDG 8 “Decent work and economic
growth”
▪ SDG 10 “Reduce inequalities“
Economic participation and
education
▪ SDG 4 “Quality education“
▪ SDG 8 “Decent work and economic
Transparent, stable and fair
growth”
markets
▪ SDG 9 “Industry, innovation and
infrastructure“
▪ SDG 10 “Reduce inequalities“
▪ SDG 12 “Responsible consumption and
production“
▪ SDG 16 “Peace, justice and
strong institutions“
▪ SDG 17 “Partnerships for the goals“
▪ Good governance
▪ SDG 8 “Decent work and economic
growth”
▪ SDG 10 “Reduce inequalities“
▪ SDG 16 “Peace, justice and
strong institutions“
Compliance – organisational structure
Code of business conduct
Compliance rules
Compliance training
▪
▪
▪
▪
▪ Whistleblowing system
▪
▪
▪
▪
▪
▪
Analysis of compliance risks
Due dilligence/customer review
Data protection
Inside information
Internal/external audit
Taxes
Further relevant aspects
Product matters
▪
▪
▪
▪
Customer satisfaction
Sustainable index products
Eurex ESG derivatives
Energy and energy-related markets
▪ Sustainable product and service
portfolio
▪ SDG 7 “Affordable and clean energy”
▪ SDG 8 “Decent work and economic
growth”
▪ SDG 9 “Industry, innovation and
infrastructure“
▪ SDG 12 “Responsible consumption and
production“
1) HGB = Handelsgesetzbuch (German Commercial Code).
35
55
Deutsche Börse Group | Annual report 2020
Executive and Supervisory Boards
Management report | Combined non-financial statement
Financial statements
Notes
Further information
Employees
This chapter provides an overview of key indicators reflecting staff developments at Deutsche Börse
Group; at the same time, it satisfies the requirements for reporting on employee matters as part of the
non-financial statement.
Staff development
As at 31 December 2020, Deutsche Börse Group employed a total of 7,238 staff (31 December 2019:
6,775), drawn from 110 nationalities at 43 locations worldwide. The average number of employees in
the reporting period was 6,996 (2019: 6,286). On Group level, this corresponds to an increase of
around 11.3 percent compared to the previous year’s reporting date.
The fluctuation rate was 6.3 per cent (unadjusted: 7.7 per cent; 31 December 2019: 8.7 and
10.6 per cent). At the end of the year under review, the average length of service for the company was 8
years (2019: 8.9 years).
The number of Deutsche Börse AG’s employees rose by 137 during the year under review to 1,693 as at
31 December 2020 (comprising 640 women and 1,053 men; 31 December 2019: 1,556 employees).
The average number of employees at Deutsche Börse AG for the 2020 financial year was 1,605 (2019:
1,505). On 31 December 2020, Deutsche Börse AG had employees at six locations around the world.
For more details, please refer to the table entitled “Key data on Deutsche Börse Group’s workforce as at
31 December 2020”.
COVID-19
The coronavirus pandemic affected Deutsche Börse Group across all locations in 2020 and continues to
do so. In March 2020, almost the entire workforce started working from home (home office). After a
social distancing strategy and a strict cleaning and disinfection concept had been introduced employees
were allowed to return to the office on a voluntary basis from 27 April, but always dependent on the
local rules in force at their location. A communications programme was set up for employees working
from home, to keep them regularly informed about the status of the pandemic and give them tips on
how to cope with the new situation. Contacts to psychological networks and counsellors were
established globally to reflect the extraordinary situation and provide emotional support. Altogether, this
has made it possible to deal with this difficult situation well so far. The steps taken in response to the
pandemic will remain in place until the situation has normalized.
36
56
Deutsche Börse Group | Annual report 2020
Executive and Supervisory Boards
Management report | Combined non-financial statement
Financial statements
Notes
Further information
Human resources strategy
Employee commitment and highly developed skills are among the cornerstones supporting Deutsche
Börse Group’s business success. Its corporate culture is characterised by a sense of responsibility,
commitment, flexibility and teamwork. Deutsche Börse Group aims to make sure that staff with these
qualities continue to join the company in the future and that they stay for the long term, if possible.
Deutsche Börse Group’s Executive Board is engaged in employee matters through one of its Board
members who is simultaneously Director of Labour Relations as well as through other regular reporting
formats. The workforce is highly diverse and represents a broad range of different age groups, genders,
physical abilities, sexual identities, ethnic origins and beliefs. The company promotes this diversity and
benefits from it, creating an environment conducive to integration from which the corporate culture
benefits. This is also in the interests of Deutsche Börse Group’s business: its broad range of diverse
products and services and the international composition of its client base pose specific requirements
regarding the professional and cross-cultural expertise of employees.
Within the scope of its growth strategy, the Group promotes a high-performance culture with a distinct
focus on clients’ needs and innovation. In order to encourage this culture, Deutsche Börse Group has a
remuneration system for executive staff in place that incorporates growth, performance and financial
indicators to a greater extent than in previous years.
In July 2019, the Supervisory Board adopted the human resources strategy 2020 initiated by the
Executive Board. This strategy is built on a detailed analysis of employee needs and the relevant human
resources indicators (e.g. recruiting metrics, key figures on staff development) as well as on the results of
an employee survey conducted in February 2019. It rests on the four pillars “attract”, “develop”, “retain”
and “lead”. According to these pillars, concepts for employer branding, recruiting, training &
development, remuneration and flexible working time models have been drawn up.
In the course of implementing the strategy, Human Resources was split into an operative business
partner team and a strategic concept team. Moreover, expansion of the HR Service Centre is planned
over the medium term.
Promotion of diversity and inclusion
Diversity is not only apparent in the origins of employees at Deutsche Börse Group, but also in the
breadth of professional backgrounds and the many other differences that make up each individual
personality in the multi-faceted team. As a global organisation we stand for recognition, appreciation and
integration within the working environment and encourage openness and fairness. This is why we
signed the “Diversity Charter” and acknowledge our corporate social and societal responsibility as
expressed in the Code of Conduct that applies throughout the Group.
Diversity and integration are the basis of our corporate culture, which is defined by open dialogue, trust
and mutual acceptance. We see the wealth of different backgrounds and ideas as a key to our success.
Our Diversity & Inclusion statement is an expression of our aspiration to offer our staff and all future
talents a fully inclusive and inviting workplace.
37
57
Deutsche Börse Group | Annual report 2020
Executive and Supervisory Boards
Management report | Combined non-financial statement
Financial statements
Notes
Further information
Deutsche Börse Group does not tolerate any discrimination, whether on the grounds of age, gender,
disability, sexual identity, ethnic origin or belief and irrespectively of whether behaviour among
employees is concerned or the placement of orders with third parties. Deutsche Börse Group's Equal
Opportunities Officers safeguard the equal treatment of staff members. Moreover, Human Resources has
implemented processes designed to ensure equal treatment in the selection of personnel and enable the
Group to take prompt action whenever discrimination is suspected. In 2020, no incidents of
discrimination were reported at the Frankfurt/Eschborn, Luxembourg, Prague and Cork locations (which
are covered by reporting); accordingly, no countermeasures were required.
Employer attractiveness
To remain sustainably successful, the recruiting of top talents is of the essence. The Group continued to
expand its presence at universities and its social networking activities with this aim in mind. In addition,
the company’s career page was overhauled and a project launched to define the employer brand. An
attractive entry-level format was also created for outstanding graduates by introducing a trainee
programme on 1 October.
Deutsche Börse Group is among the founding partners of the ada-Fellowship, a multi-company initiative.
Once again 30 people from our company took part in this 12-month development programme in
2020. It aims to give its participants the skills they need to drive digitisation as digital ambassadors.
They are introduced to the main technologies of the future, their potential applications and how to
transfer them to their organisation.
From initial contact to the actual meeting, mentors and mentees can connect on the “Meet your Mentor”
platform. Experienced colleagues act as sponsors for other employees, making their work easier. As
mentors, they assist new colleagues in networking beyond their own department, help them to get to
know the company and offer a comprehensive, cross-divisional understanding.
To increase the share of women in executive positions the company ensures that women are identified
as candidates. In addition, Deutsche Börse Group offers additional tools to promote female employees,
such as targeted succession planning and a mentoring programme with external mentors. Exchanges
among women are encouraged by means of women’s networks. Our Capital Markets Academy also
offers training courses for women on financial planning, investments and retirement saving.
For details regarding targets for female quotas, please refer to the section entitled “Corporate governance
statement – target figures for the proportion of female executives beneath the Executive Board” and the
section entitled “Comparison with the forecast for 2020”.
Training and professional development have high priority at Deutsche Börse Group. Employees expand
and refresh their knowledge continuously in the context of specific training courses for exchange-related
subjects. These particularly include IT training, e.g. for cloud computing, and career path training, e.g.
for project management and leadership. With regard to personal development, the Group also offers
numerous online and live training courses that are tailored to the target group, e.g. for communication,
responsibility or teamwork skills. A large proportion of the regular face-to-face courses was carried out
virtually in 2020 due to the covid-19 pandemic. Deutsche Börse also supports its employees and
executives in facing their individual challenges by offering a broad range of internal and external
professional training and development measures (see the “Key data on Deutsche Börse Group’s
workforce as at 31 December 2020” table).
38
58
Deutsche Börse Group | Annual report 2020
Executive and Supervisory Boards
Management report | Combined non-financial statement
Financial statements
Notes
Further information
Key data on Deutsche Börse Group’s workforce as at 31 December 2020 (part 1)
Employees (HC)
50 years and older
40−49 years
30−39 years
Under 30 years
Average age
Full-time employees
Part-time employees
Length of service
Under 5 years (%)
5–15 years (%)
Over 15 years (%)
Staff turnover
Joiners
Leavers
Deutsche Börse AG
Deutsche Börse Group
All locations
Germany
Luxembourg
Male
1,053
368
268
315
103
43
1,018
35
48
23
29
111
28
Female
640
142
144
257
97
40
496
144
48
26
26
98
17
Male
1,890
Female
1,218
565
500
634
191
42
1,816
74
47
27
26
230
82
265
286
485
182
40
877
341
47
29
24
183
45
Male
Female
680
213
249
158
60
44
652
28
32
23
45
74
23
419
102
159
112
46
42
284
135
28
31
41
30
23
Training days per employee (FTE)
4.4
5.4
5.4
4.6
4.3
4.9
39
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Deutsche Börse Group | Annual report 2020
Executive and Supervisory Boards
Management report | Combined non-financial statement
Financial statements
Notes
Further information
Key data on Deutsche Börse Group’s workforce as at 31 December 2020 (part 2)
Deutsche Börse Group
Czech Republic
Ireland
Other locations
Employees (HC)
50 years and older
40−49 years
30−39 years
Under 30 years
Average age
Full-time employees
Part-time employees
Length of service
Under 5 years (%)
5–15 years (%)
Over 15 years (%)
Staff turnover
Joiners
Leavers
Male
Female
658
24
177
356
101
37
648
10
59
41
0
74
50
374
10
64
231
69
35
331
43
56
44
0
31
30
Male
253
15
69
68
101
35
252
1
66
26
8
56
20
Female
Male
Female
Total
(part 1 and 2)
269
11
76
106
76
36
244
25
41
45
14
26
12
1,037
204
287
335
211
40
1,017
20
64
31
5
138
119
440
49
110
193
88
38
402
38
56
39
5
60
39
7,238
1,458
1,977
2,678
1,125
40
6,523
715
50
31
19
901
442
Training days per employee
(FTE)
4.0
4.3
2.6
2.8
2.4
3.3
4.2
Compliance – including combat against corruption and bribery
Responsible business operations imply adherence to laws and regulations; they are also based on the
principle of integrity and ethically irreproachable conduct at all times. Deutsche Börse Group has
implemented a compliance management system based on regulatory requirements, with the objectives
of preventing misconduct and avoiding liability and reputational risks for the Group, its legal
representatives, executives and staff. Beyond business-related compliance requirements, the focus is on
strengthening a uniform compliance culture throughout the Group, especially with a view to enhancing
compliance awareness. The compliance management system – under the responsibility of, and
promoted by, the Executive Board of Deutsche Börse AG – therefore constitutes an indispensable
element of good corporate governance with respect to compliance. Such a system provides the
foundation for sustainable risk transparency; specifically, it facilitates mitigating risks in the areas of
money laundering/terrorism financing, data protection, corruption, as well as market manipulation and
insider trading; it also monitors requirements concerning financial sanctions and embargoes.
The compliance management system applies to Deutsche Börse AG as well as to domestic and
international companies in which Deutsche Börse AG holds a majority interest (whether directly or
indirectly). Deutsche Börse Group pursues an enterprise-wide approach to its Compliance function,
ensuring that applicable laws and regulatory requirements are followed with respect to individual legal
entities.
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Deutsche Börse Group | Annual report 2020
Executive and Supervisory Boards
Management report | Combined non-financial statement
Financial statements
Notes
Further information
The Chief Compliance Officers at the companies in the Group that are covered by banking regulations
have functional reporting lines to the Group Chief Compliance Officer. The same applies to the Chief
Compliance Officers of Qontigo and 360T. The Group Chief Compliance Officer reports in turn directly to
the Executive Board of Deutsche Börse AG. Compliance reporting includes all relevant compliance risk
areas within the mandate of the compliance function.
Deutsche Börse Group is continually developing its compliance management system in order to deal
with rising complexity and increasing regulatory requirements. Deutsche Börse Group has taken steps to
identify and mitigate compliance risks and to assume its responsibilities in the event of any compliance
incidents. This applies particularly to money-laundering, financing of terrorism, financial sanctions and
embargoes, market manipulation, insider trading and data protection.
For this purpose and for material areas of compliance risk, Deutsche Börse Group aligns its system with
the recommendations of an internationally recognised standard (ISO 19600 “Compliance Management
Systems – Guidelines”). Based on this standard, the Group’s compliance function identifies fields of
action and measures to ensure compliance management continues to meet the requirements as they
change.
As a member of the UN Global Compact, Deutsche Börse AG has committed to observe the related
principles, notably the principle to work against corruption in all its forms, which includes extortion and
bribery. In line with its code of business conduct, Deutsche Börse Group prohibits its employees from
involving themselves in corruption, or from taking part in any actions which may lead to the impression
that the Group promises, arranges, provides, receives, or asks for inadmissible benefits. Bribery and
facilitation payments are prohibited.
It is Deutsche Börse Group’s guiding principle that the actions and decisions of all employees are taken
objectively and with integrity. Management plays a particularly important role in this context. Deutsche
Börse Group is fully aware of the so-called “tone from the top” for achieving a high level of awareness of
the need to manage compliance risks – both within the Group and amongst market participants. In order
to sustainably enshrine this guiding principle, and to prevent Deutsche Börse Group and its staff from
legal sanctions and reputational damage, Group Compliance has implemented a variety of preventative
measures in a risk-oriented approach.
Compliance – organisational structure
Group Compliance sets standards for the key compliance risks affecting all entities within the Deutsche
Börse Group. In this context Group Compliance devises risk-oriented measures in order to contain and
manage identified risks and to communicate risks, incidents, and the effectiveness of the measures
taken. It ensures continuous improvement of the compliance management system by way of regular
adjustments to the relevant internal policies and processes.
Key compliance topics are discussed in the Group Compliance Committee of Deutsche Börse Group.
Committee members are the senior managers of the business units and the relevant control functions for
the Group as a whole.
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Deutsche Börse Group | Annual report 2020
Executive and Supervisory Boards
Management report | Combined non-financial statement
Financial statements
Notes
Further information
Code of business conduct
Deutsche Börse Group’s code of business conduct, which is communicated to all members of staff,
summarises the most important aspects with regard to corporate ethics and compliance as well as
appropriate conduct. The Code focuses on principles to guide decisions – not rules or lists of dos and
don’ts. Moreover, Compliance provides employees with compliance-relevant information via the
corresponding intranet pages, unless specific confidentiality aspects prevent such communication. For
details, see the section entitled “Corporate governance statement”.
Compliance rules
Group Compliance has implemented Group-wide policies designed to ensure that the internal
stakeholder groups acting on behalf of Deutsche Börse Group comply with the behavioural rules set out
in such policies, with the objective of countering breaches of compliance throughout the Group in a
preventive, investigative and consequential manner. Group-wide communications via the intranet are
geared towards providing employees (including members of the Executive Board and Managing
Directors) with the necessary guidance in their daily work, and making sure they commit to such
guidance.
Compliance training
Regular compliance training is essential for the compliance culture within the Deutsche Börse Group.
Employees of Deutsche Börse Group worldwide are trained in relevant compliance topics. Training
focuses particularly on money laundering, financing of terrorism, data protection, corruption, market
manipulation and insider trading. Managers exposed to a higher compliance risk by virtue of their work
receive additional training as required. Participation in training measures covering the compliance topics
mentioned above is mandatory for employees, as well as for managers.
Whistleblowing system
Deutsche Börse Group has established a whistleblowing system, where employees can relay information
by phone or email about potential or actual breaches of prudential or regulatory rules and ethical
standards. The anonymity of whistleblowers is guaranteed. Through its commitment to compliance
awareness, Deutsche Börse Group cultivates an open approach to dealing with misconduct. For this
reason, concerns are often passed on directly to the responsible line manager, or to Compliance. During
2020, 5 reports were submitted via the whistleblowing system, or directly via line managers or control
functions (such as Compliance).
Analysis of compliance risks
In line with regulatory requirements, Deutsche Börse Group carries out detailed risk analyses and/or risk
assessments, at least on an annual basis – specifically, it analyses the risk of being abused for the
purposes of money laundering/financing of terrorism, corruption and securities law infringements. Such
risk analyses and assessments comprise the Group’s own business activities as well as business
relationships, market participants, products and services. Risk-mitigating measures are derived from the
compliance risks identified.
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Deutsche Börse Group | Annual report 2020
Executive and Supervisory Boards
Management report | Combined non-financial statement
Financial statements
Notes
Further information
Due diligence review of clients, market participants, counterparties, and business partners, plus
transaction monitoring
Deutsche Börse Group is constantly improving its processes for the onboarding of new clients and the
review of existing clients (“Know Your Customer” processes). Depending on the assessment of client risk
in each case, client relationships are subject to corresponding diligence duties concerning their
establishment, update, and monitoring. Client relationships are not entered into where the risks involved
are too high. Deutsche Börse Group analyses transaction data in order to identify activity which might
indicate potential money laundering.
Deutsche Börse Group is exposed to the risk of sanctions being imposed upon business partners;
moreover, there is a risk of bribery and corruption. In this connection, the Group examines its business
partners, whereby their details are cross-checked against relevant data sources (such as embargo,
sanctions, PEP, terrorist and other “blacklists”). Appropriate measures are taken in the event of any
match against such lists.
Key non-financial performance indicators: corruption and data protection
Corruption
Punished cases of corruption
Percentage of business units for which measures have been taken to address corruption risks
%
Number of employees who were trained in ABC measures (anti-bribery and corruption)1)
Data protection
2020
2019
0
100
0
100
1,394
6,142
Number of justified customer complaints relating to data protection
0
0
1) All Deutsche Börse Group employees must repeat the web-based ABC training every two years. As the reiteration and completion of the training takes place in
odd-numbered years, the number of training courses completed in the even-numbered year 2020 is significantly lower.
Data protection/protection of personal data
Deutsche Börse Group has exposure to a plethora of data during the course of its business activities. The
Group takes data protection very seriously and has taken measures to ensure compliance with data
protection law, in particular the appropriate and transparent processing of personal data. The Executive
Board has appointed a Data Protection Officer and established a data protection organisation to ensure that
the data privacy framework and the principles of the EU General Data Protection Regulation, which came
into force in 2018, are adhered to. On this basis the data protection organisation informs and advises the
individual legal entities with respect to data protection. The data protection organisation also serves as a
contact for data protection authorities, and supports the business units in assessing risks related to the issue
of data protection risks. It supports a stronger culture of data protection at Deutsche Börse Group by raising
awareness and providing training on data protection in the context of the Group’s business activities.
Since 2019 the data protection organisation’s monitoring framework has been incorporated into the structure of
compliance safeguards and controls, as a second line of defence on data protection. The Data Protection Officer
informs senior management on an annual basis about its activities to enhance the Data Protection framework.
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Deutsche Börse Group | Annual report 2020
Executive and Supervisory Boards
Management report | Combined non-financial statement
Financial statements
Notes
Further information
Inside information
In its capacity as an issuer of securities, Deutsche Börse Group has access to information which, in
accordance with legal requirements, may be classified as inside information. To raise awareness amongst the
employees affected, further measures were introduced on a Group-wide basis in 2020. They are designed to
mitigate the risks of market manipulation and insider trading for employees’ personal account transactions
and are geared towards ensuring that maximum sensitivity is applied to dealing with such information.
Compliance maintains a Group-wide restricted list in which issuers or financial instruments are included if
particularly sensitive, compliance-relevant information. Compliance may impose a general trading ban on
such issuers or financial instruments or may prohibit certain types of transactions. A confidential watch list is
used to summarise compliance-relevant information about other issuers and/or financial instruments. In
particular, Compliance uses these lists to monitor personal transactions of employees and Chinese walls.
Internal/external audit
At least once a year, the internal audit function checks whether the measures and concepts of the
compliance management system comply with the regulatory requirements, in a risk-based manner.
Moreover, regulated entities are subject to statutory external audits.
Taxes
Its global operations mean that Deutsche Börse Group is liable for tax in many countries. The
management of Deutsche Börse Group is aware of its responsibility to pay appropriate taxes in all
countries depending on its local value added, since this plays an important role in international relations
from an economic and social perspective. This responsibility is reflected in compliance with applicable
legislation and regulations to tackle criminal tax offences and in constructive and fair cooperation with
tax authorities.
Recent international developments to increase tax transparency require multinational groups to make
additional notifications and disclosures to tax authorities. Country-specific reporting of revenue, profits
and tax payments should be mentioned in this context, as well as the reporting procedure for cross-
border tax arrangements (DAC6). Deutsche Börse Group follows these rules consistently and so
contributes to supporting efforts to prevent abusive tax practices, such as the shifting of profits to low-tax
countries. In view of the reporting process on cross-border arrangements introduced in Germany as of 1
July 2020, Deutsche Börse Group carried out a comprehensive DAC6 analysis with the support of an
external auditing company.
The tax strategy of Deutsche Börse Group defines a uniform framework for the management of all tax
matters. It is derived from the business strategy and the code of conduct of Deutsche Börse Group. Its
core elements comprise compliance with applicable tax regulations in Germany and abroad and
adequate management of tax risks. The tax strategy is supplemented by binding policies for the Group,
which ensure a clear division of responsibilities and the involvement of the Group Tax function in all tax-
relevant matters.
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Deutsche Börse Group | Annual report 2020
Executive and Supervisory Boards
Management report | Combined non-financial statement
Financial statements
Notes
Further information
Deutsche Börse Group has a Tax Compliance Management System to monitor its tax compliance
obligations and minimise the related tax and liability risks. It defines clear process flows with integrated
controls, which are reviewed annually in the course of an adequacy and efficiency analysis.
Social matters
As a market infrastructure provider, Deutsche Börse Group considers its primary responsibility to be the
transparency of capital markets. By ensuring such transparency, it fosters stability in these markets,
promoting their economic success. The management is involved through its participation on the Group
Sustainability Board; its approach on social and sustainability matters is described in detail in the
section “Management approach for a Group-wide commitment to sustainability”.
Sustainable financial market initiatives
The Green and Sustainable Finance Cluster Germany e. V. is an initiative committed to enhancing the
expertise on sustainable finance in the market, putting that expertise to efficient use, and identifying (as
well as taking) specific action to make national and international financial markets structures fit for the
future. The Cluster has defined four fields of action: sustainable finance – status quo and innovation;
data and digitalisation; metrics and standards; dialogue and knowledge development. It coordinates the
activities of the participating institutions within these fields of action and brings them together with
policymakers, regulators, civil society and academia. Within Germany, the Cluster collaborates closely
with relevant political players in Berlin. At a European level, the Cluster is a member of the technical
expert group on sustainable finance and thus actively involved in the European Commission’s Action
Plan on sustainable finance; the Cluster supports the Action Plan's implementation and is involved in the
corresponding consultation process leading to future regulation. Deutsche Börse Group and the Cluster
are also members of the Sustainable Finance Committee to advise the German government and foster
dialogue between the financial industry, real economy, civil society and academia.
Stable, transparent and fair markets
Systems availability
Deutsche Börse AG operates its trading systems for the cash and derivatives markets as redundant
server installations, distributed across two geographically separated, secure data centres. Should a
trading system fail, it would be operated from the second data centre. Together with clients, Deutsche
Börse successfully simulated this scenario – as well as the impact of local disruptions – within the scope
of the FIA Test (the annual disaster recovery exercise conducted by the Futures Industry Association).
Other disruptions, such as workstation malfunctions or absences of key personnel, were also tested. The
ongoing covid-19 pandemic has also meant that the emergency workstations have been permanently in
use since March 2020. Multiple testing of the software used, its verified roll-out and the end-to-end
monitoring of servers, network and applications were not able to prevent two successive complex
malfunctions in the internal high-speed network, which brought the system availability for the spot
market trading system down to 99.815 per cent and the figure for the derivative market trading system
down to 99.891 per cent. These levels corresponded to downtimes of around 342 minutes and 363
minutes, respectively, during the entire year. Wide-ranging steps were taken to rule out such
malfunctions in future, which have largely been completed. They particularly involved accelerating the
emergency procedures, in order to make the system available again quickly, even if the faults cannot be
prevented. Emergency tests are now carried out more frequently, the underlying messaging software has
been optimised and is still being revised.
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Deutsche Börse Group | Annual report 2020
Executive and Supervisory Boards
Management report | Combined non-financial statement
Financial statements
Notes
Further information
Market transparency
Section 42 (1) of the Börsengesetz (BörsG, German Exchange Act) authorises exchanges to impose
additional admission requirements and further notification duties upon equity issuers, for parts of the
regulated market. Frankfurter Wertpapierbörse (FWB®, the Frankfurt Stock Exchange) used this
authorisation in its Exchange Rules (section IV, sub-section 2) to create the “Prime Standard” in 2003.
The Prime Standard segment is characterised, on the one hand, by special post-admission obligations,
which are monitored by the FWB with any breaches sanctioned by the exchange’s Sanctions Committee;
on the other hand, admission to the Prime Standard is a mandatory requirement for inclusion in one of
Deutsche Börse AG’s selection indices.
Over and above statutory requirements under the Wertpapierhandelsgesetz (WpHG, German Securities
Trading Act), Prime Standard issuers must submit their financial reports (annual and half-yearly reports),
as well as their quarterly statements for the first and third quarter, to FWB, in German and/or English
and within set deadlines. Moreover, Prime Standard issuers must submit their calendars of material
corporate events to FWB, hold an analysts’ conference at least once a year and publish any inside
information in English as well as German. All submissions to FWB must be carried out via the Exchange
Reporting System (ERS®). This electronic interface allows for efficient sorting and display of data,
helping to spot any impending failure to meet a deadline. This allows FWB to support issuers to fulfil
their transparency duties in the best possible manner by sending out email reminders prior to each
deadline. FWB included additional recommendations in its email reminders in 2020 to reflect the
information published by the European Securities and Markets Authority (ESMA) on the impact of the
covid-19 pandemic on deadlines for the publication of financial reporting. They will make it possible to
take any special circumstances and difficulties into account when investigating breaches of obligations.
All reports and data submitted to FWB are subsequently available on www.boerse-frankfurt.de/en, the
exchange’s website, under the respective issuer’s name. Information is thus accessible to interested
investors in a compact, easy-to-find manner, creating a particular level of market transparency within the
Prime Standard segment. Submission via ERS allows for monitoring fulfilment of transparency
requirements – seamlessly and without delay.
In 2020, fifteen cases were submitted to the FWB Sanctions Committee for the delayed disclosure of
information. In ten of these cases, circumstances and difficulties that arose in connection with the
COVID 19 pandemic were taken into account when proposing the amount of the administrative fines. In
another case of an identified breach of duty, the initiation of sanction proceedings was waived. Eleven
cases had been completed by the expiry of the deadline of 25 January 2021: In those cases already
concluded, administrative fines totalling € 310,800 were imposed nine times.
Furthermore, Deutsche Börse Group considers it its duty to contribute to regaining lost trust in the capital
market. In fulfilment of this responsibility, the exchange operator therefore decided in 2020 to subject its
rules and regulations to an in-depth review and to revise them with the involvement of the various
regulators.
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Deutsche Börse Group | Annual report 2020
Executive and Supervisory Boards
Management report | Combined non-financial statement
Financial statements
Notes
Further information
In this context the Exchange Council of Frankfurt Stock Exchange adopted amendments to the Exchange
Rules that will enable management in future to remove from the Prime Standard insolvent issuers or
those that have filed for insolvency. Other activities and proposals to promote the transparency of capital
markets aim to speed up penalty proceedings, increase fines for infringements and to provide investors
with transparent information about the issuers concerned and the steps and sanctions that have been
taken against them.
STOXX Ltd. announced a change to the DAX rules on 12 August. Under the new rules, companies in
statutory insolvency proceedings will be removed from the DAX selection indices within two trading
days. The rules take effect on 19 August. The new rule applies to the companies mentioned above and
was agreed in the context of a market consultation between 17 July and 7 August. Specifically, the
change refers to the opening of insolvency proceedings as proceedings defined by law and comprises all
the relevant public announcements in this context. Because companies from other EU states can also be
a member of the index, the rule does not apply solely to German insolvency law. Prior to this change,
companies that were members of the Prime Standard segment and were in insolvency proceedings were
removed from the index at the next chaining date.
Deutsche Börse Group launched a segment for green bonds – bonds issued to raise capital for projects
with climate and environmental benefits – on the Frankfurt Stock Exchange in November 2018. This
segment currently comprises 264 bonds that meet the Green Bond Principles of the International Capital
Market Association. They include the use of issue proceeds, the project selection process, management
and ongoing reporting. The new segment caters to the demand for sustainable financing, which is rising
all over the world. Investors who care not only about the economic, but also the ecological return of their
investment can find the right strategy at www.boerse-frankfurt.de > Bonds > Green Bonds. The bonds
included in Deutsche Börse’s segment are admitted for trading at various European stock exchanges,
including the Frankfurt Stock Exchange.
Bonds at Frankfurt Stock Exchange
Total issue proceeds for bonds
Issue proceeds for green bonds
€ billion
€ billion
2020
41,128
257
Stable financial markets
The core economic function of an exchange is to preserve economic prosperity and create the right
framework conditions for growth. As a global market infrastructure provider, Deutsche Börse Group
operates markets that help enterprises of all sizes to raise equity and debt – which in turn enables them
to grow, create and protect jobs and contribute to a higher level of value creation.
As central counterparty (CCP), Eurex Clearing AG fulfils its responsibility of promoting sustainable global
economic growth and stable financial markets. Furthermore, as a clearing house it is an independent
risk manager and ensures a neutral valuation of its members’ risk positions. It also protects members in
the event of a market participant defaulting, thus minimising risks and enhancing both the efficiency of
trading and the stability of the financial markets. The bundling of default risk also permits high netting
effects, which in turn facilitate sustainable cost savings for the entire market.
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Deutsche Börse Group | Annual report 2020
Executive and Supervisory Boards
Management report | Combined non-financial statement
Financial statements
Notes
Further information
The UK’s decision to leave the EU has caused significant uncertainty for the entire European financial
services sector since the referendum on 23 June 2016. A key issue in this context is the clearing of
over-the-counter (OTC) interest rate derivatives, which at approximately €312 trillion account for the
largest share (82 per cent) of outstanding OTC volumes. At the same time they are the main reason for
the strong increase since 2016 [source: BIS, Semiannual OTC Derivatives Statistics, June 2020, the
figure from the Bank for International Settlement (www.bis.org > Statistics > Derivatives > OTC
derivatives statistics) of approximately €442 trillion was adjusted by deducting double-counting of
interdealer volumes (source: www.clarusft.com); €/US$ exchange rate as at 30 June 2020:
US$1.1198/€;ECB]. Since a final decision on many Brexit-related financial topics has been deferred,
there is currently a controversial debate about access to clearing houses outside the EU-27, creating
significant uncertainty amongst market participants. Eurex Clearing AG has come up with a solution
designed to make the (potentially necessary) shift of euro clearing to the EU-27 as straightforward as
possible for all market participants: the Eurex Clearing Partnership Programme. Through this initiative,
Eurex Clearing AG is not only offering the market an attractive alternative for clearing interest rate
derivatives outside London and within the EU-27 but also anticipating potential market turbulence and
taking early action to counteract it.
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Deutsche Börse Group | Annual report 2020
Executive and Supervisory Boards
Management report | Combined non-financial statement
Financial statements
Notes
Further information
Key non-financial performance indicators: social matters
Transparency
Proportion of companies reporting in accordance with maximum transparency standards1)
Security
Availability of cash market trading system2)
Availability of derivatives market trading system2)
Average monthly cleared volumes across all products3)
2020
2019
94.5
92.0
99.815
99.891
24.1
100
99.996
24.0
%
%
%
€ trillion
1) Ratio of the market capitalisation of companies listed in the Prime Standard for shares to the market capitalisation of all companies listed on the Frankfurter
Wertpapierbörse (FWB®, the Frankfurt Stock Exchange)
2) System availability ranks amongst the most important non-financial performance indicators (as defined in DRS 20 and section 289 (3) in conjunction with
section 289 (1) sentence 3 of the HGB) for which a forecast is made
3) Average monthly clearing volume, including exchange-traded and OTC derivatives, as well as securities and repo transactions. Clearing volumes are subject to
double counting
Deutsche Börse Group pays wages, salaries and taxes. Its commercial activity therefore contributes to
private and public income – this contribution is made transparent in the value-added statement. For
details, please refer to the “Value added: breakdown of corporate performance” section.
Product matters
Customer satisfaction
Deutsche Börse Group is executing a Group-wide growth strategy with which it aims to strengthen its
agility, ambition, effectiveness and clear customer focus. In improving its organisation, the Group aims to
better address changing client needs and gradually tap unutilised potential by means of a Group-wide
approach to marketing, sales, innovation and product development.
In 2020, surveys across the EEX, Eurex, 360T and Clearstream were aligned; they include common
questions and use a standardised “Net Promoter Score (NPS)” methodology. In this context, businesses
ask their clients about their readiness to recommend the service provider with the aim of notifying senior
management and staff of the results shortly after the close of the survey.
One example of Deutsche Börse Group’s customer focus is Clearstream’s annual client services survey.
This survey aims to identify customer needs and prioritise and address enhancement requests to further
improve products and services. The results of this survey are taken up by the Clearstream management
Committee, which includes senior management, where concrete actions are taken to address customer
needs. The Clearstream senior management is provided with an overview of the items (customers’
needs/complaints) raised in the survey.
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Deutsche Börse Group | Annual report 2020
Executive and Supervisory Boards
Management report | Combined non-financial statement
Financial statements
Notes
Further information
Sustainable index products
There is an increasing demand for considering sustainability indicators in the investment process.
Qontigo’s index provider STOXX is part of Deutsche Börse Group, calculating and distributing around
13,0001 indices, whereas a growing number of which are designed after sustainability aspects. STOXX’s
offering of sustainability indices is diversified and includes environmental, social and governance- (ESG),
climate change- and carbon emissions-related products. Indices are built based on internal research and
the evaluation of market demand.
For all indices, the ultimate goal is to provide solutions to investors who consider sustainability a key
element of their investment strategy. STOXX® and iSTOXX® indices focus on indicators that can be
assessed quantitatively and are compiled by research providers specialised in the field. Within this
approach, STOXX aims to select companies that are ranked better than their peers according to selected
indicators and tilt the allocation towards those companies.
All data and service providers appointed by STOXX are subject to regular monitoring as required by
the regulations of the International Organization of Securities Commissions (IOSCO) and the European
Securities and Markets Authority (ESMA). STOXX indices are entirely rule-based. Consequently, there
is neither a committee involved nor are customers consulted in the process of reviewing the index
composition.
STOXX, as an index provider, also has the duty to represent the economic reality of the environment in
which financial actors operate. In order to prepare for and help facilitate a shift in investment culture,
STOXX develops and maintains its broad range of sustainability indices in response to investors’
current as well as anticipated demand. The broad range of solutions may also aim at mitigating
business risk should investors decide to reallocate more significant parts of their investments to
sustainability-oriented solutions, which may be driven, in part, by investor-specific or external
regulations.
As asset owners are steadily stepping up their fiduciary role and are implementing environmental, social
and governance (ESG) investment strategies, Qontigo is addressing this development by offering two
approaches for ESG-compliant versions of STOXX and DAX flagship benchmarks:
▪ STOXX ESG-X indices
STOXX ESG-X indices are ESG-screened versions of flagship STOXX global, regional, country, size and
blue-chip benchmarks. They incorporate standard norm- and product-based exclusions that aim to limit
market and reputational risks whilst keeping a low tracking error and a similar risk-return profile to the
respective benchmark. STOXX specifically excludes companies that Sustainalytics considers to be non-
compliant with their Global Standards Screening (GSS), are involved in controversial weapons, are
tobacco producers (0% revenue threshold) and/or that either derive revenues from thermal coal
extraction or exploration or have power generation capacity that utilises thermal coal (>25% revenue
threshold).
1 In an effort to realize synergies within Deutsche Börse Group's index business, Deutsche Börse AG (DBAG) has transferred on 21 August 2019 its index administrator role (as defined under the EU
Benchmarks Regulation) to STOXX Ltd. and such indices (DAX, eb.rexx, etc.) have also been included in the ESMA Benchmarks register under Art. 36 of the EU Benchmarks Regulation.
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STOXX & DAX ESG indices
The EURO STOXX 50 ESG index and the DAX 50 ESG index remove companies involved in activities
that are undesirable or controversial from a responsible-investing perspective, similar to the approach of
STOXX ESG-X indices. In addition they integrate sustainability parameters into stock selection, meaning
they prioritize or overweight companies with the highest ESG scores while underweighting the laggards.
The EURO STOXX 50 ESG index is based on the EURO STOXX 50®, one of Europe’s flagship
benchmarks. The DAX 50 ESG is designed to ensure an ESG index whose liquidity and risk-return
characteristics are similar to those of Germany’s DAX®.
The EURO STOXX 50® ESG index, the DAX 50 ESG index and STOXX’s suite of ESG-X indices are
suitable for underlying mandates, passive funds, ETFs, structured products and listed derivatives with
the ambition to increase liquidity and lower the cost of trading.
Overview of STOXX, DAX ESG, Climate Change and Carbon-Emission index offerings:
STOXX & DAX ESG Benchmark indices
STOXX ESG-X Benchmark indices
STOXX Sustainability indices
STOXX Global ESG Leaders and ESG Specialized Leaders indices
STOXX Climate indices
STOXX Low Carbon indices
ESG Impact indices
In addition to the above-mentioned STOXX and DAX indices, the ÖkoDAX® index focuses on German
companies active in the renewable energy business.
iSTOXX ESG offering
Under the umbrella of the iSTOXX brand, STOXX also offers a broad range of customised ESG-related
indices that cater to specific client requirements. These indices offer specific strategies within the
broader STOXX universe of responsible investing indices that track companies that are pioneering or
making the most headway in the transition to a low-carbon economy and a fairer and better world from
the perspective of ESG principles.
Visit the website www.qontigo.com for a complete overview of all STOXX, DAX and iSTOXX indices.
Non-financial key indicators: sustainable index products
ESG criteria
Assets under management in ETFs based on ESG indices from Qontigo1)2)
Total assets under management in ETFs based on indices from Qontigo1)
€m
€bn
328.5
274.3
100,468.9
99,209.33
31 Dec. 2020
31 Dec. 2019
Transparency
Number of sustainable index concepts
Number of calculated indices
296
224
12,999
12,554
1) STOXX (STOXX Indices) and Qontigo Index GmbH (DAX Indices) are part of Qontigo
2) Based on the ETFs issued in 2016: FlexShares STOXX® Global ESG Impact index and FlexShares STOXX® US ESG Impact index, based on ETFs issued in 2019:
EURO iSTOXX ESG-X & Ex Nuclear Power Multi Factor, EURO STOXX ESG-X & Ex Nuclear Power Minimum Variance Unconstrained, EURO STOXX 50 ESG and
STOXX Europe 600 ESG-X and based on ETFs issued in 2020: DAX 50 ESG, STOXX Europe 600 Paris-Aligned Benchmark, EURO iSTOXX Ambition Climat PAB
and EURO STOXX 50 ESG
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Eurex ESG derivatives offering
Eurex took over a pioneering role by introducing an ESG product suite based on European benchmarks
in February 2019. The three futures on the highly liquid European STOXX benchmarks covering ESG
Exclusions, Low Carbon and Climate Impact support market participants to manage sustainability-driven
challenges. In October the first exchange-traded ESG options on a European benchmark was added to
the product range. At the same time the offering was further complemented by STOXX Select products
with futures and options that capture the performance of European companies with high dividend
payments and low volatility which are selected from the STOXX ESG Global Leaders index.
With the introduction of derivatives on sustainable versions of various regional and global benchmarks in
February and March 2020 Eurex has achieved a global coverage with its ESG offering. In November
2020 Eurex went one step further in terms of methodology by introducing futures and options on DAX
50 ESG and EURO STOXX 50 ESG indices combining screening out undesirable securities and
considering ESG rankings as part of the selection process.
Products available for trading on Eurex:
▪ EURO STOXX 50® Low Carbon Index Futures
▪ STOXX® Europe 600 ESG-X Index Futures and Options
▪ STOXX® Europe Climate Impact Ex Global Compact Controversial Weapons & Tobacco Index Futures
▪ STOXX® Europe ESG Leaders Select 30 Index Futures and Options
▪ STOXX® USA 500 ESG-X Index Futures
▪ MSCI ESG Screened Index Futures covering USA, World, EM, EAFE and Japan
▪ DAX® 50 ESG Index Futures and Options
▪ EURO STOXX 50® ESG Futures and Options
In 2020, the second year after their launch, STOXX Europe 600 ESG-X Index Futures and Options,
which are by far the most popular contracts, have reached ca. 1.18 million traded contracts. ESG is one
of the major trends and the product interest is in line with Eurex expectations. Overall the segment
covers 16 products.
Further information is available on www.eurex.com -> markets -> equity index -> ESG derivatives
Energy and energy-related markets
Deutsche Börse Group holds a majority shareholding in European Energy Exchange AG (EEX), Leipzig,
Germany. The product and service offerings of EEX and its subsidiaries focus on trading platforms for
energy and energy- related markets (e.g. power, gas, emission allowances). By providing liquid, secure
and transparent markets, EEX group plays an important role in improving the efficient functioning of
these markets that are directly linked to questions of climate change. This includes the continuous
development of new products and services, providing market solutions to support the long-term
transition of Germany’s and Europe’s energy system towards a higher share of carbon-free, renewable
energy sources.
EEX is constantly developing new support within the framework of the EU climate and decarbonisation
goals as expessed within the European Green Deal. This includes long-term strategies such as the EU
Hydrogen Strategy.
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EEX operates a regulated market for emissions allowances under the EU Emissions Trading System (EU
ETS) and hosts the central auction platform for the EU-ETS. This includes organising regular auctions on
behalf of the 27 EU member states. 25 EU member states are connected to an EU-wide auction
platform, and separate auctions are held for Germany and Poland. This system could be expanded to
take in further sectors such as heating and transportation.
Furthermore, EEX has developed hedging instruments to trade energy with an increasing power
generation from renewables. EEX has introduced throughout the year a number of short term power
products to support this development. In addition, an extension of maturities in the electricity
derivatives market, which will allow for electricity production and procurement to be hedged in the long
term is required and is thus being developed. Companies developing renewable energy, and their
business partners, can already hedge against price volatility and counterparty credit risks over the long
term and these maturities will be expanded from next year onwards. Such trades in long-term maturity
products have already occurred throughout 2020 and are expected to grow in the future.
EEX Group further promotes the integration and marketing of renewables through its role as a provider of
registries for so-called guarantees of origin, which are used by electricity and gas distributors to prove the
origin of the energy they supply. Here, EEX Group also develops markets for carbon-free and low carbon
hydrogen. Grexel, part of EEX Group active in operating registries for guarantees of origin, is an active
consortium partner to CertifHy, which used to be the first registry for hydrogen guarantees of origin.
Comparison with the forecast for 2020
With regard to the development of the non-financial performance indicators forecast for 2020, the Group
was unfortunately not quite able to achieve the system availability of the previous year. Trading system
availability in the cash market was below target at 99.815 per cent (2019: 100 per cent) and for the
derivatives market at 99.891 per cent (2019: 99.996 per cent), which in both cases was due to a
technical infrastructure failure. Measures taken in this regard promise significantly higher operational
reliability in the future. Against this background, the company expects that the availability of the trading
systems for the cash and derivatives market will again be at the very high level of previous years in the
forecast period.
In its endeavours to raise the share of women holding executive positions, as early as in 2010, the
Executive Board had adopted a voluntary commitment to increase the share of women holding middle
and upper management positions to 20 per cent by 2020, and of women holding lower management
positions to 30 per cent. The Group maintains this ambition in 2021. In a deviation from the statutory
obligation, the voluntary commitment has been formulated more comprehensively. On the one hand, the
targets set here relate to Deutsche Börse Group worldwide, and on the other hand, the management
levels (management positions) have been defined more comprehensively so that, for example, team
leader positions are also included. Globally, these ratios were 16 per cent for senior and middle
management at Deutsche Börse Group as at 31 December 2020 (2019: 15 per cent) and 31 per cent
for lower management (2019: 27 per cent). For Germany, the ratios were 18 per cent (2019: 16 per
cent) and 29 per cent (2019: 22 per cent), respectively.
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Risk report
Deutsche Börse Group (hereafter also known as “the Group”) includes the following entities which are
regulated as credit institutions: Clearstream Banking S.A. and Clearstream Banking AG (hereinafter
referred to as “Clearstream”, including Clearstream Holding AG), as well as Eurex Clearing AG.
Clearstream Banking AG is also an authorised central securities depository and subject to the Central
Securities Depositories Regulation. Eurex Clearing AG and European Commodity Clearing AG continue to
be authorised as central counterparties (CCPs) and are subject to the requirements of the European
Market Infrastructure Regulation (EMIR). In addition, other Group companies hold different licences to
provide regulated activities in the financial services sector. As such, these entities are subject to
comprehensive statutory requirements, inter alia on risk management (for further information on the
regulated entities, please refer to “Regulatory capital requirements and regulatory capital ratios”). Over
and above the statutory requirements, including the EU directives (CRD IV and MiFID II) and their
implementation into national law, other regulations worth mentioning include primarily EU regulations
(CRR, CSDR and EMIR), the national requirements of the Minimum Requirements for Risk Management
(MaRisk) issued by the Federal Financial Supervisory Authority (Bundesanstalt für
Finanzdienstleistungsaufsicht, BaFin), and circular 12/552 issued by the Financial Supervisory Authority
of Luxembourg (Commission de Surveillance du Secteur Financier, CSSF). In this context, significant
parts of the risk management are defined in the scope of the so-called second pillar of the Basel III
regime for a number of the Group’s companies. Moreover, national regulations implementing the EU
Banking Recovery and Resolution Directive (BRRD) apply to Clearstream and Eurex Clearing AG
regarding the establishment of recovery plans. Deutsche Börse Group follows international standards in
its risk management and also applies these without or in addition to such statutory requirements.
The highest regulatory standards within the Group are applicable to Eurex Clearing AG and Clearstream,
given their regulation as credit institutions. Considering this and their economic importance, this risk
report focuses on these subsidiaries in particular.
Risk strategy and risk management
Deutsche Börse Group’s risk strategy is aligned with its business model and company strategy. The
Group provides the infrastructure for reliable and secure capital markets, assists constructively in their
regulation and strives for a leading role in all of the areas in which it does business. Deutsche Börse
Group’s risk strategy is based on three core principles:
1. Risk limitation – protecting the company against liquidation and ensuring its continuing operation
“Capital exhaustion should not occur more than once in 5,000 years and an operating loss must not be
generated more than once every hundred years.” This means that one goal is to ensure a minimum
probability of 99.98 per cent that the total capital will not be lost within the next twelve months. By this
approach an economic perspective is taken when evaluating the risks of Deutsche Börse Group. Another
objective is to guarantee for a probability of 99.0 per cent or more that Deutsche Börse will at least
break even, expressed in terms of its EBITDA. In other words, this principle establishes how much risk
the Group must be able to withstand whilst also determining its risk appetite. Ensuring the continuing
operation of Deutsche Börse Group additionally demands the fulfilment of regulatory capital
requirements, which reflects a normative perspective when evaluating the risks of Deutsche Börse
Group.
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2. Support for growth in the various business segments
“Risk management supports the business units in developing their business”. With this principle, the
Group promotes its growth strategy. As such, risks are identified, and clearly communicated. This
principle includes risk from organic growth, M&A activities and the use of transformational technology.
The aim is to make well-founded strategic decisions within the boundaries of the defined risk appetite.
3. Appropriate risk/return ratio
“The return on equity should exceed the cost of equity.” Deutsche Börse Group has set itself the goal of
ensuring that risk and return should be reasonably balanced, both for specific business areas in general
and for individual regions, products and customers.
Internal risk management is based on the Group-wide detection and management of risk, which is
focused on its risk appetite, see the chart “Interlocking business strategy and risk strategy”. Deutsche
Börse AG’s Executive Board has overall responsibility, and defines the framework for risk management
throughout the Group. Under these Group-wide risk management requirements, each business segment
and each regulated company is responsible for managing its own risk.
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Implementation in the Group’s organisational structure and workflow
The risk strategy applies to the entire Deutsche Börse Group. Risk management functions, processes and
responsibilities are binding for all Group employees and organisational units. To ensure that all
employees are risk-aware, risk management is firmly anchored in the Group’s organisational structure
and workflows. The Executive Board is responsible for risk management overall, whereas within the
individual companies it is the responsibility of the respective management. The boards and committees
given below receive regular information on the risk situation.
The Supervisory Board of Deutsche Börse AG assesses and monitors the effectiveness of the risk
management system and its continuing development. The Supervisory Board has delegated the regular
evaluation of the appropriateness and the effectiveness of the risk management system to the Audit
Committee. In addition, the Risk Committee examines the risk strategy and risk appetite on an annual
basis.
Deutsche Börse AG’s Executive Board determines the Group-wide risk strategy and risk appetite and
allocates the latter to the company’s individual business segments and business units, respectively. It
ensures that the Group’s risk appetite is and remains compatible with its short- and long-term strategy,
business and capital planning, risk-bearing capacity and remuneration systems. The Executive Board of
Deutsche Börse AG also determines what parameters are used to assess risks and how risk capital is
allocated. It ensures that the requirements for the risk strategy and risk appetite are met.
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The Group Risk Committee (GRC) reviews the risk position of the Group regularly and involves the
Executive Board in all important matters. The GRC is a Group-internal risk committee, chaired by the
Chief Financial Officer.
Group Risk Management (GRM), headed by the Chief Risk Officer (CRO), prepares the proposals for the
corresponding risk strategy, risk appetite, the approaches and methods for monitoring risk, capital
allocation and procedures. GRM continuously analyses and evaluates risks and produces quantitative
and qualitative reports. These are submitted regularly to the GRC, once a month or as needed ad hoc to
the Executive Board, once a quarter to the Risk Committee of the Supervisory Board and once a year to
the Supervisory Board. Likewise, the CRO reports to the Audit Committee on the effectiveness of the risk
management system on an annual basis. This system ensures that the responsible bodies can regularly
check whether the defined risk limits are being adhered to consistently. In addition, GRM recommends
risk management measures with which the risks can be controlled accordingly.
The Group’s regulated subsidiaries act in the same way, always ensuring that they meet the
requirements of the Group. In particular, they adhere to the risk appetite framework allocated to them by
Deutsche Börse Group. The relevant supervisory boards and their committees are involved in the
process, as are the executive boards and the corresponding risk management functions. Clearstream and
Eurex Clearing AG implement the risk strategy with specific features drawn up for their own businesses.
They therefore also use metrics and reporting formats adapted to the overarching Group structure. In
general, the management of the respective subsidiary bears the responsibility for its risk management
and risk appetite; the observance is monitored by the respective supervisory board.
Centrally coordinated risk management – a five-stage process
Risk management is implemented in a five-stage process. The objective is to identify all potential losses
in good time, to record them centrally and to evaluate them in quantitative terms as far as possible; if
necessary, management measures must then be recommended and their implementation monitored (see
the chart “The five-stage risk management system”): The first stage is to identify the risks and the
possible causes of losses or operational malfunctions. In the second stage, the business areas regularly –
or immediately, in urgent cases – report to GRM the risks that they have identified and quantified. In the
third stage, GRM assesses the risk exposure, whilst in the fourth stage, the business areas manage the
risks by avoiding, mitigating or transferring them, or by actively accepting them. The fifth and final stage
involves, for example, monitoring different risk metrics and, where necessary, informing the responsible
Executive Board members and committees of significant risks, their assessment and possible emergency
measures. In addition to its regular monthly and quarterly reports, GRM compiles ad hoc reports for
members of the executive and supervisory boards. The risk management functions at Clearstream and
Eurex Clearing AG submit reports to the respective executive boards and supervisory boards. As an
independent unit, Internal Audit reviews the risk controlling functions.
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Approaches and methods for risk monitoring
Deutsche Börse Group uses quantitative and qualitative approaches and methods for risk monitoring,
with the objective of providing as complete a picture as possible of its risk situation at all times. To this
end, the Group continuously reviews internal events with regard to their risk properties, whilst also
considering regional as well as global developments. The Group is thus able to recognise and analyse
existing risks; at the same time, it is able to swiftly and adequately respond to emerging risks, as well as
to changes in the market or in the business environment.
Existing risks
Deutsche Börse Group employs a range of tools to evaluate and monitor operational, financial and
business risk on a continuous basis, applying an economic perspective to quantify and aggregate risks.
A normative perspective is also adopted for the credit institutions Clearstream and Eurex Clearing AG.
The value at risk (VaR) model is the main tool used for quantification. The purpose of the VaR model is
to determine the amount of capital – given a confidence interval defined ex ante – required to cover
potential losses incurred within twelve months. Moreover, so-called stress tests are carried out in order to
simulate extreme, yet plausible, events and their impact upon the Group’s risk-bearing capacity. Another
approach to risk monitoring, which serves as an early warning system for quantified and non-
quantifiable in-house risks, is complementary risk metrics. These risk metrics are based on IT and
security risks, potential losses, credit, liquidity and business risks.
1. Economic perspective: what risk can the capital bear?
The economic perspective measures risk positions arising from regular operations solely on the basis of
qualitative and quantitative criteria, and so regardless of the requirements of individual accounting or
regulatory models. This perspective defines the minimum amount of required economic capital (REC).
Principle 1 of the risk strategy specifies that Deutsche Börse Group should not exhaust its risk-bearing
capacity in more than 0.02 per cent of all years.
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For Clearstream and Eurex Clearing AG, REC calculated in this manner also complies with the
requirements of the second pillar of Basel III. Deutsche Börse Group determines its risk-bearing capacity
on the basis of its reported equity in accordance with International Financial Reporting Standards
(IFRSs). Clearstream and Eurex Clearing AG determine their risk-bearing capacity on the basis of their
regulatory capital (for details, see section “Regulatory capital requirements and regulatory capital
ratios”).
For management purposes, GRM regularly determines the ratio of the REC to the risk-bearing capacity.
This indicator is known as the utilisation of risk-bearing capacity and it answers a key risk management
question: how much risk can the Group afford and what risk is it currently exposed to? The ratio of REC
to risk-bearing capacity remained below the defined maximum throughout the reporting period. If this
were not the case, the Group would in a worst-case scenario exhaust its entire risk-bearing capacity and
would become insolvent.
2. Normative perspective and other regulatory capital requirements
Clearstream and Eurex Clearing AG must also calculate their capital requirements for various risk types
(see the chart “Deutsche Börse Group’s risk profile”) in line with the Pillar I requirements of Basel III. In
addition, Eurex Clearing AG must fulfil EMIR capital requirements whilst Clearstream Banking AG has to
comply with CSDR capital requirements as authorisation as CSD was granted by BaFin in January
2020. Clearstream Banking S.A. is currently applying for authorisation according to CSDR. Clearstream
and Eurex Clearing AG use the standard approach for analysing and evaluating credit and market risk.
The two institutions have adopted different approaches regarding operational risk: Clearstream uses the
considerably more complex advanced measurement approach (AMA) in all business units. This means
that it meets the regulatory capital requirements for operational risk set out in the EU’s Capital
Requirements Regulation (CRR). According to the method – which has been approved and is regularly
audited by BaFin – the required capital is allocated to the regulated entities. In contrast, Eurex
Clearing AG employs for operational risk the basic indicator approach in order to calculate regulatory
capital requirements (for details, see section “Regulatory capital requirements and regulatory capital
ratios”).
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3. Stress tests
Stress tests are carried out in order to simulate extreme, yet plausible, events for all material types of
risk. Using both hypothetical and historical scenarios, they simulate the occurrence of extreme losses, or
an accumulation of large losses, within a single year. Similarly, inverse stress tests are also carried out,
which analyse which loss scenarios would exceed the risk-bearing capacity.
4. Risk metrics
Risk metrics are used to quantify the exposure to the most important internal risks against set limits.
They are complementary to the VaR approach and serve to monitor other factors as well as non-
quantifiable risks. Any breach of these limits serves as an early warning signal, which is reported to the
Executive Board on a monthly basis. Furthermore, any such breach immediately triggers the requisite
risk mitigation processes.
Emerging risks
With regard to risk management, Deutsche Börse Group pursues a sustainable, long-term strategy by
also evaluating risks beyond a twelve-month horizon. For this purpose, the Group has developed so-
called risk maps tailored specifically for expected or upcoming regulatory requirements and IT and
information security risks. In addition, other operational, business and financial risks are also assessed
beyond a twelve-month period. Risk maps classify risks by their probability of occurring and by their
financial impact, should they materialise. A review process of Environment Social Governance (ESG)
aspects is also carried out as part of the Group Risk Committee.
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Risk description
The following section describes the types of risk that Deutsche Börse Group generally has to manage and
presents the risks it actually faces. It also explains the measures that Deutsche Börse Group uses to
attempt to prevent loss events, and to minimise their financial effects.
Risk profile
The risk profile of Deutsche Börse Group differs fundamentally from those of other financial services
providers. Deutsche Börse Group differentiates between the three standard types of risk: operational risk,
financial risk and business risk. Project risk also exists but the Group does not specifically quantify these
as their impact is already reflected in the three risk types. The majority of risks are of an operational
nature (see the charts below: “Required economic capital for German universal banks by risk type” and
“Required economic capital for Deutsche Börse Group by risk type”).
Operational risk greater than financial and business risk
Utilisation of risk-bearing capacity from an economic perspective is used as the primary internal
management indicator throughout Deutsche Börse Group (see the section “Approaches and methods for
risk monitoring” for an explanation of these terms). In addition to the financial and operational risk
already mentioned, business risk is also identified and assessed. This relates in particular to potential
threats to revenue such as price pressure or loss in market share as well as cost risks. The economic
perspective reveals that financial risk only accounts for around 24 per cent of all risks at Deutsche Börse
Group. Business risk accounts for 11 per cent. This makes the third risk type all the more important for
Deutsche Börse Group: at 65 per cent, operational risk accounts for two-thirds of the REC. Information
on the additional capital requirements of other subsidiaries is provided in section “Regulatory capital
requirements and regulatory capital ratios”.
The three risk types applicable to Deutsche Börse Group are described in detail below, in the order of
their importance.
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Operational risk
For Deutsche Börse Group, operational risks comprise the unavailability of systems, service deficiency,
damage to physical assets as well as legal disputes and business practice (see the chart below:
“Operational risk at Deutsche Börse Group”). Human resources risks are quantified just like other
operational risks. The share of operational risk of the REC was 65 per cent as at 31 December 2020.
Unavailability of systems
Operational resources such as the Xetra® and T7® trading system are essential for the services offered by
Deutsche Börse Group. They should never fail in order to ensure that market participants can trade
securities or derivatives at any time and without delay. The Group therefore calculates the availability of
these systems as an important risk indicator. In line with the Group’s risk strategy, the business areas
are responsible for monitoring the indicators.
The longer the downtime for one of these systems, the larger the potential loss. An outage could be
caused by software or hardware issues, or in unlikely cases, the availability of the systems could be
affected by acts of cybercrime or terrorist attack. In the past, only limited failures have occurred both
with Xetra and with T7 and its predecessor system. In practice, there has never been a system failure
lasting longer than one day. Deutsche Börse Group has taken a number of measures to further minimise
the risk of failure lasting an entire day or longer, for example the redundancy of the network
infrastructure. Despite all mitigating measures, however, failures of the IT infrastructure can never be
ruled out completely. In 2020, limited instances of T7 system issues exceeding two hours were
observed. Timely countermeasures were taken to address these system issues.
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In general, availability risk represents the largest operational risk for Deutsche Börse Group and is
therefore subject to regular tests that simulate not only what happens when its own systems fail but also
when suppliers fail to deliver.
Service deficiency
Risks can also arise if a service provided to a customer is inadequate and this leads to complaints or
legal disputes. One example would be errors in the settlement of securities transactions due to defective
products and processes or mistakes in manual entries. A second example is handling errors in the
collateral liquidation process in the event of the default of a large clearing customer. Such errors have
not occurred to date in the rare case of a failure. The related processes are tested at least annually.
Other sources of error may be attributable to suppliers or to product defects; mistakes that may lead to
the loss of client assets or mistakes in accounting processes must also be considered. The Group
registers all complaints and formal objections as a key indicator of deficient processing risk.
Damage to physical assets
Natural disasters, accidents, terrorism or sabotage also count as operational risks that could, for
example, cause the destruction of, or severe damage to, a data centre or office building. Business
Continuity Management and Physical Security measures aim at averting significant financial damage
(see the chart Business Continuity Management).
Legal disputes and business practice
Losses can also result from ongoing legal proceedings. These can occur if Deutsche Börse Group
breaches laws or other requirements, enters into inadequate contractual agreements or fails to monitor
and observe case law to a sufficient degree. Legal risk also includes losses due to fraud and labour law
issues. This could entail, for example, losses resulting from insufficient anti-money laundering controls
or breaches of competition law or of banking secrecy. Such operational risks can also arise if government
sanctions are not observed, e.g. in case of conflicting laws of different jurisdictions, or in the event of
breaches of other governmental or overarching regulations.
In its 2012 corporate report, Deutsche Börse Group informed about the class action Peterson vs
Clearstream Banking S.A., the first Peterson proceeding, targeting turnover of certain customer positions
held in Clearstream Banking S.A.’s securities omnibus account with its US depository bank,
Citibank NA, and asserting direct claims against Clearstream Banking S.A. for damages of
US$250.0 million. The matter was settled between Clearstream Banking S.A. and the plaintiffs and the
direct claims against Clearstream Banking S.A. were abandoned.
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In July 2013, the US court ordered turnover of the customer positions to the plaintiffs, ruling that these
were owned by Bank Markazi, the Iranian central bank. Bank Markazi appealed, and the decision was
affirmed on 9 July 2014 by the Second Circuit Court of Appeals and later by the US Supreme Court on
20 April 2016. Once distribution of the funds to the plaintiffs is complete, a related case, Heiser vs
Clearstream Banking S.A., also seeking turnover of the same assets, should also be dismissed.
On 30 December 2013, a number of US plaintiffs from the first Peterson case, as well as other
plaintiffs, filed a complaint in the USA targeting restitution of certain assets that Clearstream Banking
S.A. holds as a custodian in Luxembourg. In 2014, the defendants in this action, including Clearstream
Banking S.A., moved to dismiss the case. On 19 February 2015, the US court issued a decision
granting the defendants’ motions and dismissing the lawsuit. The plaintiffs lodged an appeal against this
ruling at the competent appeals court (Second Circuit Court of Appeals), which on 21 November 2017
confirmed large portions of the decision of the court of first instance. The appeals court referred the case
back to the court of first instance regarding another aspect, asking the court to assess whether the assets
held in Luxembourg are subject to execution in the USA. Clearstream Banking S.A. filed a petition
against this ruling with the US Supreme Court on 8 May 2018. The US Supreme Court decided on 13
January 2020 to refer the second Peterson case back to the appeals court for consideration in the light
of new US legislation. The appeals court referred the case back to the court of first instance and on 12
August 2020, the plaintiffs filed a motion for a summary decision with the court of first instance.
Alternatively, the plaintiffs have requested a preliminary court decision ordering the transfer to the USA
of the disputed assets held in custody by Clearstream Banking S.A.
On 14 October 2016, a number of plaintiffs filed a complaint in the USA naming Clearstream
Banking S.A. and other entities as defendants. The complaint in this proceeding, Havlish vs Clearstream
Banking S.A. is based on similar assets and allegations as in the Peterson proceedings. The complaint
seeks turnover of certain assets that Clearstream Banking S.A. holds as a custodian in Luxembourg. The
complaint also asserts direct claims against Clearstream Banking S.A. and other defendants and
purports to seek damages of up to approximately US$6.6 billion plus punitive damages and interest. On
12 October 2020, an amendment to the complaint was filed in this case with the aim of including
additional plaintiffs in the proceedings. In connection with this, also further direct claims for damages of
approximately US$3.3 billion (plus punitive damages and interest) are asserted against Clearstream
Banking S.A. and the other defendants.
On 2 April 2014, Clearstream Banking S.A. was informed that the United States Attorney for the
Southern District of New York has opened a grand jury investigation against Clearstream Banking S.A.
due to Clearstream Banking S.A.’s conduct with respect to Iran and other countries subject to US
sanction laws. Clearstream Banking S.A. is cooperating with the US attorney.
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In the context of the ongoing disputes regarding assets of Bank Markazi, Clearstream Banking S.A. was
served with a complaint of Bank Markazi on 17 January 2018 naming Banca UBAE S.p.A. and
Clearstream Banking S.A. as defendants. The complaint filed before the Luxembourg courts primarily
seeks the restitution of assets of Bank Markazi which the complaint alleges are held on accounts of
Banca UBAE S.p.A. and Bank Markazi with Clearstream Banking S.A., totalling approximately
US$4.9 billion plus interest. Alternatively, Bank Markazi seeks damages of the same amount. The assets
sought include assets that were previously transferred by Clearstream Banking S.A. to Banca UBAE
S.p.A. Furthermore, the complaint by Bank Markazi concerns assets of approximately US$1.9 billion
that were turned over to US plaintiffs pursuant to a 2013 binding and enforceable US court order in a
proceeding to which Bank Markazi was a party. The lawsuit also concerns client assets of approximately
US$2.0 billion, which includes assets held by Clearstream Banking S.A. that are currently subject to
litigation in the USA and Luxembourg brought by US plaintiffs. In view of this, Bank Markazi by way of
further proceedings pending in Luxembourg is seeking the declaration that Clearstream Banking S.A.
shall, subject to penalties, be prohibited from transferring relevant assets to the USA. Until a decision in
these proceedings, Clearstream Banking S.A., due to a preliminary injunction obtained by Bank Markazi,
is prohibited under penalty from transferring relevant assets to the USA. Clearstream Banking S.A. has
filed a recourse with the Luxembourg Court of Cassation against the preliminary injunction.
On 15 June 2018, Banca UBAE S.p.A. filed a complaint against Clearstream Banking S.A. with the
Luxembourg courts. This complaint is a recourse action related to the complaint filed by Bank Markazi
against Clearstream Banking S.A. and Banca UBAE S.p.A and asks that Banca UBAE S.p.A. be
indemnified and held harmless by Clearstream Banking S.A. in the event that Banca UBAE S.p.A. loses
the legal dispute brought by Bank Markazi and is ordered by the court to pay damages to Bank Markazi.
The plaintiffs in the above-mentioned Havlish case on 24 September 2020 made a formal intervention
concerning the complaint by Bank Markazi of 17 January 2018. With this, the plaintiffs, amongst
others, request that Clearstream Banking S.A. be ordered to pay an amount equivalent to US judgments
obtained by the plaintiffs against Iran and Bank Markazi in the amount of approx. US$6.6 billion (plus
interest).
On 24 November 2020, the plaintiffs in the Havlish case also sued Clearstream Banking S.A. and other
legal entities in Luxembourg. The lawsuit is essentially based on similar allegations to those in the
Havlish case pending in the USA, and amongst other things asserts direct claims of around US$5.5
billion (plus interest) against Clearstream Banking S.A.
On 26 December 2018, two US plaintiffs filed a complaint naming Clearstream Banking S.A. and other
entities as defendants. The plaintiffs have claims against Iran and Iranian authorities and persons
amounting to approximately US$28.8 million. The complaint in this case (Levin vs. Clearstream
Banking S.A.) is based on similar assets and allegations as in the second Peterson case, and the Havlish
case. The complaint seeks turnover of certain assets that Clearstream Banking S.A. holds as a custodian
in Luxembourg. The complaint also asserts direct claims against Clearstream Banking S.A. and other
defendants and seeks damages of up to approximately US$28.8 million, plus punitive damages and
interest.
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On 4 December 2019, several US plaintiffs from the aforementioned Heiser vs Clearstream Banking S.A.
case filed a new complaint naming Clearstream Banking S.A. and other entities as defendants. The
plaintiffs hold claims against Iran and Iranian authorities and persons in excess of US$500.0 million,
and are seeking turnover of Iranian assets.
On 26 August 2020, further judgment creditors of Iran (the “Ofisi plaintiffs”) filed a complaint in the
USA in which Clearstream Banking S.A. is also named as a defendant. The Ofisi plaintiffs obtained a US
judgment against Iran and others in 2014 awarding them damages of approximately US$8.7 billion as a
result of terrorist attacks attributed, amongst others, to Iran. On this basis the Ofisi plaintiffs are seeking
the turnover of assets attributed to Bank Markazi which are already the subject of other actions brought
against Clearstream Banking S.A. Furthermore, the Ofisi plaintiffs are claiming damages and punitive
damages equivalent to the amount of their damage award directly from Clearstream Banking S.A.
Starting on 16 July 2010, the insolvency administrators of Fairfield Sentry Ltd. and Fairfield Sigma Ltd.,
two funds domiciled on the British Virgin Islands, filed complaints in the US Bankruptcy Court for the
Southern District of New York, asserting claims against more than 300 financial institutions for
restitution of amounts paid to investors in the funds for redemption of units prior to December 2008. On
14 January 2011, the funds’ insolvency administrators filed litigation against Clearstream Banking S.A.
for the restitution of US$13.5 million in payments made for redemption of fund units, which the funds
made to investors via the settlement system of Clearstream Banking S.A. The proceedings, which were
suspended for several years, are ongoing.
Amongst other legal disputes in connection with the bankruptcy of the Puerto Rico case under
PROMESA legislation, the legal committee of the Puerto Rican government initiated legal action in 2019
to recover interest payments made from 2014 to 2017 to holders of government bonds (ERS and GO
bonds) and company pension bonds. Clearstream Banking S.A. is named in this US litigation and two
lawsuits have been filed against Clearstream Banking S.A. itself: one of the two lawsuits relates to
payments in connection with the GO bond, the other to payments in connection with the ERS bond. The
Puerto Rican government is claiming US$3.9 million for the GO bond and less than US$16,000 for the
ERS bond. Both lawsuits (and all other similar litigation) have been suspended since July 2019.
On 24 August 2020, Clearstream Banking S.A. was summoned in legal proceedings in Indonesia
between PT Kapuas Prima Coal TBK and the principal defendant Horizonte Opportunities Fund SPC.
Clearstream Banking S.A. is cited as a co-defendant in the proceedings. PT Kapuas Prima Coal TBK
claims a breach of contract by ZINC shareholders and is seeking the return by means of blocking and
seizure of ZINC shares issued by it that are currently deposited with the co-defendant’s custodians
(including Clearstream Banking S.A.). At the first hearing in November 2020, the court noted it could
dismiss the claim if the plaintiff was again not present at a hearing scheduled for April 2021.
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Legal disputes have arisen regarding a bond issued by MBB Clean Energy AG (MBB), which is held in
custody by Clearstream Banking AG. MBB issued the first tranche of the bond in April 2013 and the
second tranche of the bond in December 2013. The global certificates for the two tranches were
delivered to Clearstream Banking AG by the paying agent of the issuer. The legal disputes relate to the
non-payment of the bond and the purported lack of validity of the bond. Clearstream Banking AG’s role
in the context of the purported lack of validity of the MBB bond is primarily to safekeep the global
certificate as national central securities depository. Insolvency proceedings have meanwhile been opened
in respect of the issuer, MBB.
A buyer of an MBB Clean Energy AG (MBB) bond, which is held in custody by Clearstream Banking AG
and was listed on the Frankfurt Stock Exchange, filed a lawsuit at a Dutch court concerning claims for
damages against Clearstream Banking AG, Deutsche Börse AG and other partners. The lawsuit was
dismissed at first instance in October 2020; the plaintiff filed an appeal against the judgment.
On 6 February 2020, a plaintiff filed a complaint naming Clearstream Banking AG and one other entity
as defendants. The complaint, which was filed before the courts in Frankfurt, primarily seeks rights to
information and the turnover of dividends in the amount of approximately €4.1 million plus interest. The
alleged claim relates to dividends from securities that Clearstream Banking AG holds as a custodian.
In September 2017, Clearstream Banking AG and Clearstream Banking S.A. were made aware that the
Public Prosecutor’s Office in Cologne had initiated proceedings for tax evasion against an employee of
Clearstream Banking AG for his alleged involvement in the settlement of transactions of market
participants over the dividend date (cum/ex transactions). On 22 January 2018, the Public Prosecutor’s
Office in Cologne addressed to Clearstream Banking AG a notification of hearing Clearstream Banking AG
and Clearstream Banking S.A. as potential secondary participants (Nebenbeteiligte). Starting on 27
August 2019, together with other supporting authorities, the Public Prosecutor’s Office in Cologne
conducted searches of the offices of Clearstream Banking AG, Clearstream Banking S.A., as well as other
Deutsche Börse Group companies and sites. In the course of these measures, Deutsche Börse Group
entities were made aware that the Public Prosecutor’s Office in Cologne has extended the group of
accused persons (Beschuldigte) to include current and former employees of Deutsche Börse Group
companies as well as executive board members of subsidiaries of Deutsche Börse AG. In 2020,
Deutsche Börse became aware of a further extension of the group of accused persons among current
and former employees of Deutsche Börse AG’s subsidiaries. Due to the still early stage of the
proceedings, it is still not possible to predict timing, scope or consequences of a potential decision. The
companies concerned are cooperating with the competent authorities. They do not expect that they could
be successfully held liable.
In November 2018, a customer of a trading participant of the Frankfurt Stock Exchange filed a lawsuit at
the District Court (Landgericht) of Frankfurt/Main against Deutsche Börse AG. The plaintiff is claiming
damages of approximately €2.6 million from Deutsche Börse AG. The alleged damages are said to have
arisen (1) on 7 July 2016, from Deutsche Börse AG’s publication of an inaccurate ex-dividend date
relating to a financial instrument via the Xetra system and (2) due to the fact that a client of the plaintiff
relied on this inaccurate information to conclude transactions. The court dismissed the complaint in its
final ruling of 6 November 2020.
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On 19 December 2018, the German Federal Financial Supervisory Authority (Bundesanstalt für
Finanzdienstleistungsaufsicht, BaFin) sent Deutsche Börse AG a formal hearing notification in a penalty
proceeding, which refers to an allegation of a supposed lack of self-exemption or, alternatively, an
allegedly omitted ad hoc announcement. Specifically, in the search for a successor for Carsten Kengeter,
Deutsche Börse AG had omitted to qualify as a price-relevant intermediate step the fact that a few days
before the appointment of Theodor Weimer in November 2017, two suitable and interested CEO
candidates had been identified and a decision about the appointment was planned. Even after
consulting with external experts, Deutsche Börse AG believes this allegation is unfounded.
Despite the ongoing proceedings described before, the Executive Board is not aware of any material
changes to the Group’s risk situation.
As of 31 December 2020 in the opinion of Executive Board and based on the information available,
there was no provision requirement for litigation in any of the cases.
Measures to mitigate operational risk
Deutsche Börse Group takes specific measures to reduce its operational risk. Amongst them are
emergency and contingency plans, measures to ensure information security and the physical safety of
employees and buildings as well as compliance rules and procedures. In addition, Deutsche Börse
Group has insurance policies that partly cover the potential financial consequences of operational
incidents.
Emergency and contingency plans
It is essential for Deutsche Börse Group to provide its products and services as reliably as possible. The
Group has to maintain its business operations and safeguard against emergencies, failures and crises. If
its core processes and resources are not available, this represents not only a substantial risk for the
entire Group but also even a potential systemic risk for the financial markets in general. As a result,
Deutsche Börse Group has set up a system of emergency and crisis plans covering the entire Group
(business continuity management, BCM). This covers all processes designed to ensure continuity of
operations in the event of a crisis and significantly reduces unavailability risk. Measures include
precautions relating to all important resources (systems, workstations, employees, suppliers), including
the redundant design of essential IT systems and the technical infrastructure, as well as emergency
measures designed to mitigate the unavailability of employees or workspaces in core functions at all
important locations. This includes unavailability due to pandemic based events, like the recent
coronavirus outbreak. This situation is being handled in accordance with the Deutsche Börse Group
Incident and Crisis Management Process. Activities are centrally coordinated to ensure continuity of
Deutsche Börse Group’s critical operations as well as employees’ health and safety. Back-up locations
are subject to regular tests and remote access is also available. Examples of such emergency and
contingency measures are listed in the “Business continuity management” chart.
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Preparations for emergencies and crises
The Group has introduced and tested a management process for emergencies and crises that enables it
to respond quickly and in a coordinated manner. This is intended to minimise the effects on business
processes and on the market and to enable a quick return to regular operations. All business segments
have appointed emergency managers to act as central contacts and take responsibility during
emergencies and crises. The emergency managers inform the Executive Board or raise the alarm with
them in the case of severe incidents. In the event of a crisis, the Executive Board member responsible for
the affected business area acts as the crisis manager or delegates this role. The emergency and
contingency plans are tested regularly by realistically simulating critical situations. Such tests are
generally carried out unannounced. The test results are evaluated based on the following criteria:
◼ Functionally effective: the measures must be technically successful.
◼ Executable: the employees must be familiar with the emergency procedure and be able to execute it.
◼ Timely: emergency measures must ensure that operations restart within the intended time period,
namely the recovery time objective (RTO).
Information security
Attacks on information technology systems and their data – especially due to cybercrime – represent
operational risks for Deutsche Börse Group, which is continuously confronted with rising threats in this
respect, as are other financial services providers and the entire sector. Unauthorised access, change and
loss of information, as well as non-availability of information and services, may all arise as a result of
such attacks (such as phishing, DDoS and ransomware attacks). There was no successful attack on
Deutsche Börse Group’s core systems in 2020.
In order to maintain the Group’s integrity as a transaction services provider, and in order to reduce and
control the risks, Deutsche Börse is continuously implementing measures to increase information
security. The aim is to proactively boost the robustness of procedures, applications and technologies
against cybercrime in such a way that they are adjusted to the threatening situation and regulatory
requirements at an early stage. The foundation for this is formed by a set of core processes together with
specific control measures based on the international information security standard ISO/IEC 27001.
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The information security function checks that the information security and information security risk
management requirements are adhered to; it also monitors the systemic integration of (and adherence
to) security standards, within the scope of product and application development.
The Group operates a situation centre (Computer Emergency Response Team, CERT), which detects and
assesses threats from cybercrime at an early stage, and coordinates risk mitigation measures in
cooperation with the business units.
The Information Security function operates a Group-wide programme designed to raise staff awareness
for the responsible handling of information, and to improve staff conduct in this aspect. All in all,
Deutsche Börse Group’s security approach includes overall measures in accordance with ISO/IEC 27001
covering both the development phase and the operational phase.
Furthermore, Deutsche Börse Group has been a full member of national associations (Cyber Security
Sharing and Analytics, CSSA), trade associations (World Federation of Exchanges) and international
networks (Financial Services Information Sharing and Analysis Center, FS-ISAC) which contribute
significantly towards a forward-looking stance vis-à-vis cyber threats, and the development of strategies
to fend off such threats.
Physical security
Deutsche Börse Group places great importance on physical security issues due to the constantly
changing global security risks and threats. Corporate Security has developed an integral security concept
to protect the company, its employees and values from internal and external attacks and threats – in a
proactive as well as reactive manner. Analysts are continuously assessing the security situation at
Deutsche Börse Group’s locations and are in close contact with authorities (Federal Criminal Police
Office – BKA, Federal Office for the Protection of the Constitution – BfV, etc.), security services providers,
and security departments of other companies. Multi-level security processes and controls ensure
physical safety at the Group’s locations. Physical access to buildings and values is monitored
permanently; it is based on the access principle of ‘least privilege’ (need-to-have basis). Penetration
tests, inter alia, are carried out on a regular basis to verify the efficiency and effectiveness as well as the
quality of the security processes at the locations.
In an increasingly competitive global market environment, access to know-how and confidential
company information bears the potential of a major financial advantage to outsiders or competitors.
Deutsche Börse applies state-of-the-art technology to prevent its knowledge from being obtained illegally,
e.g. through wiretapping.
Furthermore, Corporate Security is tasked with providing support to employees whilst they are travelling
or on foreign assignment, i.e. protecting them from risks in the areas of crime, civil unrest, terrorism and
natural disasters. In this context, a worldwide travel security programme was established which
guarantees a risk assessment before, during and after travelling, supported by a travel-tracking system
and a central 24/7 emergency telephone number.
Insurance contracts
Operational risks that Deutsche Börse Group cannot or does not wish to bear itself are transferred to
insurance companies, if this is possible at a reasonable price. The insurance policies are checked
individually and are approved by Deutsche Börse AG’s Chief Financial Officer.
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Financial risk
Deutsche Börse Group divides its financial risk into credit, market and liquidity risk (see the “Financial
risk at Deutsche Börse Group” chart below). At Group level, these risks account for about 24 per cent of
the REC (this information only includes credit and market risk; liquidity risk is not quantified as part of
the REC; see note 23 to the consolidated financial statements). They apply primarily to the Group’s
credit institutions. As a result, the following comments focus on Clearstream and Eurex Clearing AG.
Credit risk
Credit risk or counterparty credit risk describes the danger that a counterparty might not meet its
contractual obligations, or not meet them in full. Measurement criteria include the credit rating of the
counterparty, the degree to which a credit line has been utilised, the collateral deposited and
concentration risk. Although Clearstream and Eurex Clearing AG often have short-term exposures against
counterparties totalling several billion euros overall, these are generally secured by collateral deposited
by the market participants. However, Clearstream may have short-term unsecured exposures with
correspondence banks in the course of settling securities transactions. Moreover, the Group regularly
evaluates the reliability of its recovery plans at Clearstream and Eurex Clearing AG in various scenarios
(including client defaults), and the resulting credit risk.
Clearstream grants loans to its clients in order to make the securities settlement more efficient. This type
of credit business is, however, fundamentally different from the classic lending business. On the one
hand, credit is extended solely for less than a day, and it is generally collateralised and granted to clients
with a high credit rating on the other. Furthermore, the credit lines granted can be revoked at any time.
Furthermore, Clearstream Banking S.A. is exposed to credit risk arising from its strategic securities
lending transactions (ASLplus). Only selected banks act as borrowers. All borrowing transactions are fully
collateralised and only selected bonds with a high credit rating are permitted for use as collateral.
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Under its terms and conditions, Eurex Clearing AG only enters into transactions with its clearing
members. Clearing mainly relates to defined securities, subscription rights and derivatives that are traded
on specific stock exchanges. Eurex Clearing AG also offers this service for over-the-counter (OTC)
products such as interest rate swaps and forward rate agreements. As a central counterparty, it
intervenes between the parties to a transaction. By offsetting reciprocal claims and requiring clearing
members to post collateral, Eurex Clearing AG mitigates the credit risk exposure.
To date, no default by a client with a secured credit line has resulted in financial losses. Deutsche Börse
Group therefore considers the risk of client default resulting in material losses for the Group to be low.
Credit risk can also arise from cash investments. The Treasury department is responsible here, and has
Group-wide authority. Treasury largely makes collateralised investments of funds belonging to Group
companies as well as cash provided by Clearstream and Eurex Clearing AG customers. The Group has
not incurred any losses from such investment activity to date.
Clearstream and Eurex Clearing AG run stress tests to analyse scenarios, such as the default of their
largest client. The figures determined in this way are compared with the limits defined as part of the
companies’ risk-bearing capacity. In addition, the impact of several clearing members defaulting at the
same time is calculated for Eurex Clearing AG. Moreover, inverse stress tests are run to determine the
number of counterparties that would have to default for losses to exceed the risk cover amount.
Extended stress scenarios were drawn up in 2020, especially in view of the coronavirus pandemic and
the potential future defaults at banks. The results are analysed continuously and included in the
calculation of risk-bearing capacity.
Deutsche Börse Group generally tracks a variety of risk indicators in addition to its risk measures (REC,
regulatory capital requirements and the stress tests performed for credit risk). These include the extent to
which individual clients utilise their credit lines and where credit is concentrated.
Reducing credit risk
Clearstream and Eurex Clearing AG assess the creditworthiness of potential customers or counterparties
to an investment before entering into a business relationship with them. The companies do this in the
same way: they determine the size of individual customers’ credit lines based on requirements and
regular creditworthiness checks, which they supplement with ad hoc analyses if necessary. They define
safety margins for the collateral depending on the risk involved and review them continuously.
Deutsche Börse Group reduces its risk when investing funds belonging to Group companies and client
funds by distributing investments across multiple counterparties, all with a high credit quality, by
defining investment limits for each counterparty and by investing funds primarily in the short term and in
collateralised form if possible. Investment limits are established for each counterparty on the basis of at
least annual credit checks and using ad hoc analyses, as necessary. Since extending its licence as an
investment and credit institution under Kreditwesengesetz (German Banking Act), Eurex Clearing AG can
also use the permanent facilities at Deutsche Bundesbank and the Swiss National Bank; it is thus in a
position to manage the majority of client funds in a central bank environment.
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Investment losses on currencies for which Eurex Clearing AG has no access to the respective central
banks will be borne, on a pro-rata basis, by Eurex Clearing AG and by those clearing members active in
the currency where losses were incurred. The maximum amount which each clearing member will have
to contribute in this manner is the total amount such clearing member has pledged with Eurex
Clearing AG as cash collateral in this currency. The maximum amount to be borne by Eurex Clearing AG
is €50 million.
Given the size and volatility of its clients’ liabilities, Eurex Clearing AG has developed a leading-edge
margining system, which is described in detail in the following section.
Safety for participants and the clearing house
Each clearing member must prove that it has liable capital (or, in the case of investment funds, assets
under management) equal to at least the amounts that Eurex Clearing AG has defined for the different
markets. The amount of liable capital (or assets under management) for which evidence must be
provided depends on the risk. To mitigate Eurex Clearing AG’s risk that clearing members might default
before settling open transactions, members are obliged to deposit collateral in the form of cash or
securities (margins) on a daily basis and, if required, to meet additional intraday margin calls.
Eurex Clearing AG only permits securities with a high credit quality and liquidity to be used as collateral
to cover margin requirements. Internal evaluations and external ratings are used to determine the credit
quality. On the basis of these consolidated ratings, only collateral that is classified at least as investment
grade is permitted. The limits for bank bonds are raised to at least “A–” due to the potential wrong-way
risks. The admission criteria are reviewed continually and market risk is covered by haircuts with a
confidence level of at least 99.9 per cent. Hence, securities of issuers with lesser credit quality are
subject to higher haircuts than those applied to securities with higher credit quality. Eligible collateral
that no longer meets the high credit rating requirements at a later point in time (e.g. due to a new
consolidated rating) is excluded. Risk inputs are checked monthly and the haircuts are recalculated daily
for each security. In addition, a minimum haircut applies to all securities.
Margins are calculated separately for clearing member accounts and client accounts. Gains and losses
resulting from intraday changes to the value of financial instruments are either settled in cash by the
counterparties (variation margin) or deposited with Eurex Clearing AG as collateral by the seller due to
the change in the equivalent value of the item (premium margin). In the case of bond, repo or equity
transactions, the margin is collected from either the buyer or the seller (current liquidating margin),
depending on how the transaction price performs compared to the current value of the financial
instruments. The purpose of these margins is to offset accumulated gains and losses.
In addition, Eurex Clearing AG uses additional collateral to protect itself in the case of default by a
clearing member against any risk that the value of the positions in the member’s account will deteriorate
in the period before the contained positions are closed and the account is settled. This additional
collateral is known as the initial margin. The target confidence level here is at least 99.0 per cent (with a
minimum two-day holding period) for exchange-traded transactions, or 99.5 per cent (with a minimum
five-day holding period) for OTC transactions. Eurex Clearing AG checks daily whether the margins
match the requested confidence level: the initial margin is currently calculated using both the standard
risk-based margining method and the Eurex Clearing Prisma method.
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The Eurex Clearing Prisma method is available for all traded derivatives contracts and takes the clearing
member’s entire portfolio – as well as historical and stress scenarios – into account when calculating
margin requirements. The objective is to cover market fluctuations for the entire liquidation period until
the account is settled. At present, the risk-based margining method is still used for cash market products
and physical deliveries, as well as for securities lending and repo transactions.
In addition to the margins for current transactions, each clearing member contributes to a default fund,
with the contributions based on its individual risk profile. This fund is jointly liable for the financial
consequences of a default by a clearing member to the extent that this cannot be covered by the
member’s individual margin, and its own and Eurex Clearing AG’s contributions to the default fund.
Eurex Clearing AG uses daily stress tests to check whether its default fund is adequate enough to absorb
a default of its two largest clearing members. This involves subjecting all current transactions and their
collateral to market price fluctuations at a confidence level of at least 99.9 per cent. In order to be able
to determine potential losses in excess of a clearing member’s individual margins, the impact on the
default fund of a potential default is simulated. Eurex Clearing AG has defined limits which, when
exceeded, trigger an immediate adjustment to the size of the default fund if necessary. The following
lines of defence are available in case a clearing member is unable to meet its obligations to Eurex
Clearing AG due to a delay in performance or a default:
◼ First, Eurex Clearing AG may net the relevant clearing member’s outstanding positions and transactions
and/or close them – in terms of the risk involved – by entering into appropriate back-to-back
transactions, or settle them in cash. Clients' segregation models are taken into account accordingly.
◼ Any potential shortfall that might be incurred in connection with such a closing or cash settlement, as
well as the associated costs, would be covered in the first instance by the collateral provided by the
clearing member concerned. As at 31 December 2020, collateral amounting to €66,598 million had
been provided for the benefit of Eurex Clearing AG (after haircuts).
◼ After this, the relevant clearing member’s contribution to the default fund would be used to cover the
open amount. Contributions ranged from €1 million to €487.3million as of 31 December 2020.
◼ Any remaining shortfall would initially be covered by a contribution to the default fund by Eurex
Clearing AG. Eurex Clearing AG’s contribution amounted to €200.0 million as of 31 December 2020.
◼ Only then would the other clearing members’ contributions to the default fund be used proportionately.
As at 31 December 2020, aggregate default fund contribution requirements for all clearing members of
Eurex Clearing AG amounted to €4,536 million. After the contributions have been used in full, Eurex
Clearing AG can request additional contributions from each clearing member, which can be at most
twice as high as their original default fund contributions. In parallel to these additional contributions,
Eurex Clearing AG provides additional funds of up to €300.0 million, provided via a letter of comfort
from Deutsche Börse AG (see below). These additional funds will be used together with the additional
clearing member contributions, on a pro-rata basis.
◼ Next, the portion of Eurex Clearing AG's equity which exceeds the minimum regulatory capital
requirements would be realised.
◼ Finally, the remaining equity of Eurex Clearing AG would be drawn upon.
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Financial statements
Notes
Further information
◼ Deutsche Börse AG has issued a letter of comfort in favour of Eurex Clearing AG. With this letter of
comfort, Deutsche Börse AG commits to provide Eurex Clearing AG with the funds required to meet its
obligations – including the obligation to provide additional funds of up to €300.0 million, as mentioned
before. The maximum amount to be provided under the comfort letter amounts to €600.0 million,
including payments already made. Third parties are not entitled to any rights under the comfort letter.
In the event of default by a clearing member, Eurex Clearing AG carries out a Default Management
Process (DMP), with the objective of closing out all positions assumed as a result of the default. Within
the scope of the DMP, any costs incurred in connection with such close-out are covered using collateral
from Eurex Clearing AG’s lines of defence. Essentially, within the DMP framework, products which share
similar risk characteristics are assigned to liquidation groups that are liquidated using the same process.
Within a liquidation group, Eurex Clearing AG will balance its position by transferring defaulted positions
to other clearing members, either via an auction or by way of bilateral independent sales. Potential
claims against Eurex Clearing AG, arising from the settlement of positions assumed from the defaulted
clearing members, are covered by the collateral from the multiple lines of defence. Whenever necessary,
these collateral items are disposed of in the market by way of bilateral independent sales, in order to
cover the outstanding claims from settling the open positions. The DMP will therefore not only contribute
to the security and integrity of capital markets, but will also protect non-defaulted clearing members from
any negative effects resulting from the default.
In the past, the DMP of Eurex Clearing AG has been used four times, involving the defaults of Gontard &
MetallBank (2002), Lehman Brothers (2008), MF Global (2011) and Maple Bank (2016). In all of the
cases mentioned before, the funds pledged as collateral by the defaulted clearing member were sufficient
to cover losses incurred upon closing out positions – in fact, a significant portion of resources was
returned to the defaulted clearing member.
Market risk
Market risk include risks of an adverse development of interest rates, exchange rates or other market
prices. Deutsche Börse Group measures these risks using Monte Carlo simulations based on historical
price data, as well as corresponding stress tests.
Clearstream and Eurex Clearing AG invest parts of their equity in securities with the highest credit
quality. The majority of these securities have a variable interest rate, interest rate risk is low. The Group
avoids open currency positions whenever possible. Furthermore, market risk could result from Deutsche
Börse Group’s ring-fenced pension plan assets (Contractual Trust Arrangement (CTA), Clearstream’s
pension fund in Luxembourg). The Group reduced its risk of extreme losses by deciding to invest the
bulk of the CTA on the basis of a value preservation mechanism.
Liquidity risk
Liquidity risk arises if a Deutsche Börse Group company is unable to meet its daily payment obligations
or if it can only do so at a higher refinancing cost. Operational liquidity requirements are met primarily
internally by retaining funds generated with a view towards maintaining sufficient liquidity in order to be
able to meet all of the Group’s payment obligations when due.
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Notes
Further information
An intra-Group cash pool is used to pool surplus cash from subsidiaries on a Deutsche Börse AG level,
as far as regulatory and legal provisions allow. Liquid funds are invested in the short term in order to
ensure that they are available. Short-term investments are also largely secured by liquid bonds from first-
class issuers. Deutsche Börse AG has access to short-term external sources of financing, such as agreed
credit lines with individual banks or consortia, and a commercial paper programme. In recent years,
Deutsche Börse Group has leveraged its access to the capital markets to issue corporate bonds in order
to meet its structural financing needs.
Since Clearstream’s investment strategy aims to be able to repay customer deposits at all times, maturity
limits are set carefully. In addition, extensive sources of financing are available at all times, such as
ongoing access to the liquidity facilities at Deutsche Bundesbank and Banque centrale du Luxembourg.
Due to its role as a central counterparty, Eurex Clearing AG has strict liquidity guidelines and its
investment policy is correspondingly conservative. Regular analyses ensure the appropriateness of the
liquidity guidelines. In addition, Eurex Clearing AG can use Deutsche Bundesbank’s permanent facilities.
Deutsche Börse Group can also be exposed to liquidity risk in case of a customer default. If a clearing
member of Eurex Clearing AG defaults, its member position is liquidated. If a Clearstream customer
defaults, the – generally collateralised and intraday – credit line granted to increase settlement efficiency
would be called, and the collateral provided by the client could then be liquidated. A decline in market
liquidity, following a market disruption, would increase Deutsche Börse Group’s liquidity risk exposure.
By means of stress tests, Clearstream and Eurex Clearing AG calculate for each day of the month – and
report on a monthly basis – the liquidity needs that would result if the two largest counterparties were to
default, and maintain sufficient liquidity in order to cover this liquidity requirement. Potential risks that
are identified in the course of stress tests are analysed and corresponding risk-reduction measures
initiated. During the 2020 reporting year, Eurex Clearing AG and Clearstream continuously held
sufficient liquidity to fulfil both regulatory requirements as well as the liquidity needs determined through
stress tests.
Business risk
Business risk reflects the fact that the Group depends on macroeconomic and geopolitical developments
and is influenced by other external events, such as changes in the competitive environment or regulatory
initiatives. It therefore expresses the risks associated with the Group’s business environment and sector.
It also includes business strategy risk, i.e. the impact of risks on the business strategy and possible
adjustments to it. These business risks are represented as variance analyses of planned and actual
EBITDA, and are monitored constantly by the divisions. They account for about 11 per cent of the
Group’s REC. Business risk may result in revenues lagging budget projections or in costs being higher.
Business risk includes the risk that competitors, such as the exchanges Euronext, Singapore Exchange
(SGX), ICE Futures Europe and Mercado Español de Futuros Financieros (MEFF), as operators of
derivatives markets, might increase their market shares on the European trading markets (both on- and
off-exchange).
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Financial statements
Notes
Further information
Additional business risk may arise from regulatory requirements, or from the geopolitical or economic
environment – for example, in the event of an inner-European crisis affecting the monetary union, the
impact of negative interest rates or a tariff conflict, having adverse effects on trading activity.
In recent years Deutsche Börse Group has taken steps to reduce the direct risks associated with “Brexit”
– the departure of the United Kingdom (UK) from the European Union (EU). They focus on customer
access to the Group’s systems, on market access to the UK for the Group’s business units and on
establishing an alternative pool of liquidity within the EU 27 for clearing interest rate swaps
denominated in euros. Despite this, it will be necessary to keep a close eye on how the relationship
evolves in the future. These relations are expected to have an impact on issues of general market access
and on the development of the regulatory frameworks in the respective markets. In the medium to long
term, the latter could diverge and so jeopardise market access or result in higher operating costs. It could
also result in different competition rules, which may lead to uncertainty, additional costs and lost
revenue for the Group and for market participants.
In terms of political tax discussions, the financial transaction tax (FTT) to which some European states
still aspire represents a variable which could have an adverse effect on the Group’s business. Steps to
introduce a digital tax or a Union-wide taxation of financial services could also have a negative impact
on the Group, depending on how the scope of application is defined.
Other regulatory risks exist in connection with the forthcoming review of the directive and regulation on
markets in financial instruments (MiFID II/MiFIR). In terms of trading, the main risks for volumes at the
Eurex Exchange and the Group’s spot market would be if any competitive disadvantages caused trading
activities to move to alternative venues. Furthermore, rules on non-discriminatory access to clearing and
trading in financial instruments could have an adverse impact on trading volumes and revenue. Finally,
it should be noted that ideas and initiatives concerning a consolidated data storage system, particularly
in combination with stricter regulation of pricing for market data, could result in business risks for the
Group’s market data business.
In connection with the review of the Central Securities Depository Regulation (CDSR) there are also risks
for the business of Eurex Securities Transaction Services if the conditions for mandatory buy-in
transactions, which are linked to the rules on settlement discipline, are changed. In addition, there are a
number of risks for the securities depositories in the Group, which may also entail changes to their
organisational structure. A review of the framework could also lead to restrictive practices and so
represent a risk to revenue. Finally, the Group’s securities depositories could also be exposed to revenue
risk as a result of the work carried out by the contact group for the primary market at the European
Central Bank.
In its clearing business there are some risks for the Group concerning the final structure of the
framework for the recovery and resolution of central counterparties, as well as from the ongoing
development of global standards. The former relate particularly to the liability and capital requirements of
operators of central counterparties in relation to market participants and so could represent a revenue
and cost risk for the Group. In addition, further implementation of the European Market Infrastructure
Regulation 2.2 (EMIR 2.2) on the work of the Supervisory Committee for Central Counterparties could
affect the ongoing development of the Eurex Clearing Partnership Programme in the field of interest rate
derivatives.
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Financial statements
Notes
Further information
The ongoing review of the European Market Infrastructure 2.1 (EMIR 2.1) could also distort competition
due to changes affecting risk-mitigation services in post-trading and so cause a loss of revenue.
Other business risks exist in the medium term from legislative initiatives from the European Commission
on the Digital Finance Package. To encourage the use of distributed ledger technology (DLT) in financial
markets the European Commission is proposing limited and experimental DLT pilot regimes to introduce
DLT multilateral trading facilities (MTF) as novel DLT market infrastructures. They would be admitted for
trading securities that are transferred via DLT, which are not recorded with a central depository but rather
in a distributed ledger of the same DLT MTF. This potentially poses risks to existing business models in
the Group, to the extent that the proposed exceptions are established within the existing regulatory
framework. Another proposal by the European Commission, the Digital Operational Resilience Act
(DORA), provides for the EU-wide harmonisation of the requirements for the digital operational resilience
of all financial market participants in terms of information and communications technologies (ICT). The
proposal also includes a new prudential regime for third-party ICT providers and critical ICT services,
including cloud services. DORA creates a risk of higher costs and increasing complexity and inflexibility
for the operation of the Group’s IT infrastructure. Furthermore, the proposal could have an adverse
impact on the Group’s multi-cloud strategy by making it more difficult to use cloud services in the
financial industry.
Similar risks could also arise from the implementation in Germany of the EU Directive on the Security of
Network and Information Systems (NIS Directive). The provisions of the current draft of the Second Act
to Increase the Security of Information Systems (IT-SiG 2.0) must be considered to be significant for the
companies concerned. Alongside new standards and specifications, new responsibilities, technical
access rights and powers are defined for the German Federal Office for IT Security (BSI), and the
German Federal Ministry of the Interior, Building and Community (BMI) is given the right to issue orders.
The current situation is that the Group would be classified in the legislation as an entity of “particular
public interest”, which could potentially result in new liability risks, duties and additional costs.
In the field of ongoing environmental, social and governance (ESG) regulation there are also a number of
risks for the Group’s market data and index business. A strict and prescriptive regulatory approach to
environmental standards in the finance sector could also cause disruption in the Group’s traditional
business areas and so raise questions in terms of market quality, market depth, pricing and risk
management. These business risks could be supported by further regulatory initiatives in the field of
sustainable corporate governance and so represent revenue risks.
BaFin is assessing on a regular basis whether Deutsche Börse AG could potentially be classified as a
financial holding company. Currently, Deutsche Börse AG is not classified as a financial holding
company. On the basis of the business portfolio and the criteria which are, to the knowledge of Deutsche
Börse AG, applied by BaFin when classifying a company as a financial holding company, the Executive
Board of Deutsche Börse AG is not of the opinion that Deutsche Börse AG qualifies as a financial holding
company. Such qualification could, inter alia, have an impact on the capital base of Deutsche Börse AG.
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Financial statements
Notes
Further information
Regulatory capital requirements and regulatory capital ratios
As in the past, Clearstream Banking S.A., Clearstream Banking AG and Eurex Clearing AG, in their
capacity as credit institutions, are subject to solvency supervision by the German or Luxembourg
banking supervisory authorities (Bundesanstalt für Finanzdienstleistungsaufsicht, BaFin, and
Commission de Surveillance du Secteur Financier, CSSF, respectively). The same applies to the
Clearstream Holding at a regulatory group level. Eurex Repo GmbH and 360 Treasury Systems AG are
also subject to specific provisions applicable to certain investment firms under BaFin prudential
supervision.
Since the authorisation of both Eurex Clearing AG and European Commodity Clearing AG as central
counterparties in 2014, these companies have been subject to the capital requirements defined in
Article 16 EMIR. These requirements apply to Eurex Clearing AG as an authorised central counterparty
in parallel to the prudential supervision requirements; the higher requirement applies. Irrespective of its
status as an other credit institution according to German law, European Commodity Clearing AG is only
subject to EMIR capital requirements.
Since Clearstream Banking AG was authorised as a central securities depository on 21 January 2020, it
has been subject to the capital requirements defined in Article 47 CSDR. These requirements apply to
Clearstream Banking AG at the same time as the prudential supervision requirements; the higher
requirement applies.
The applications filed for Clearstream Banking AG (pursuant to Article 54 CSDR) and Clearstream
Banking S.A. are currently being reviewed by the respective supervisory authorities. In addition to the
above mentioned capital requirements, Clearstream Banking AG and Clearstream Banking S.A. will also
be subject to a capital surcharge for the provision of intra-day credit risk pursuant to Article 54 (3) d)
CSDR.
Nodal Clear, LLC is a Derivatives Clearing Organisation (DCO) subject to regulation by the US
Commodity Futures Trading Commission (CFTC).
REGIS-TR S.A., as a trade repository according to EMIR, is subject to supervision exercised by the
European Securities and Markets Authority (ESMA).
None of the Deutsche Börse Group entities are trading book institutions. Market risk exposures consist
only of relatively small open foreign currency positions. The companies concerned uniformly apply the
standardised approach for credit risk. As a result of the specific business of the central securities
depositories and central counterparties belonging to Deutsche Börse Group, their recognised assets are
subject to wide fluctuations. This leads to correspondingly volatile total capital ratios especially at the
Clearstream companies. The volatility of the ratio is subject to major fluctuations on a day-to-day basis
in the course of the year. Due to a high degree of secured or zero-weighted cash investments, the own
funds requirements for credit exposures of Eurex Clearing AG and European Commodity Clearing AG are
relatively stable despite volatile total assets in the course of the year.
To calculate operational risk, Eurex Clearing AG and European Commodity Clearing AG use the basic
indicator approach, whilst the Clearstream companies apply the advanced measurement approach.
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Management report | Risk report
Financial statements
Notes
Further information
Due to the specific arrangements for the investment firms Eurex Repo GmbH, 360 Treasury Systems AG
and Eurex Securities Transactions Services GmbH, no explicit own funds requirements for operational
risk are determined in accordance with Article 95 CRR. Instead, the total own funds requirement is
determined either as the own funds requirement amount for credit and market risk or as 25 per cent of
fixed overhead costs, depending on which is higher. Since credit and market risks are low, the relevant
criterion for these companies is the own funds requirement on the basis of overhead costs.
None of the Group companies subject to prudential supervision has either Additional Tier 1 or Tier 2
capital.
A minimum total capital ratio of 8 per cent generally applies to institutions subject to the CRR. In
addition, CRD IV introduced various capital buffers, which the supervised (credit) institutions generally
have to meet on top of the minimum total capital ratio of 8 per cent, although they may temporarily fall
below these levels. The current capital conservation buffer is 2.5 per cent.
As at 31 December 2020, the bank-specific countercyclical buffer requirement amounted to 0.04 per
cent of risk-weighted assets for Clearstream Banking S.A, to 0.045 per cent for Clearstream Banking AG
and to 0.09 per cent for Clearstream Holding Group whereas Eurex Clearing AG has to hold 0.25 per
cent. As at 31 December 2020, the systemic risk buffer was not required by the authorities in
Luxembourg or Germany. None of the Group companies has been defined as of global systemically
important institution. Clearstream Banking S.A. has been defined by CSSF No 20-07 as an “other
systemically important institution” (O-SII) since 1 January 2018 and requires an additional buffer of 0.5
per cent.
The individual companies’ capital resources sufficiently reflect the fluctuation in risk-weighted assets. In
addition, buffers are taken into account for the calculation of the recovery indicators specified in the
recovery plans. The objective of these indicators is to prevent triggering recovery events. The capital
requirements determined in this way will be used for the mid-term capital planning.
The own funds requirements of Clearstream Group increased slightly in the reporting period. The capital
requirements for Clearstream Banking AG increased, whilst for Clearstream Banking S.A. they decreased.
Changes occurred regarding own funds requirements for operational risks as well as credit and market
risks, both at the single-entity and Group levels.
In the medium to long term, the Clearstream Group expects increasing own funds requirements at a
regulatory group level for the following reasons:
▪ The future applicability of own funds requirements based on CSDR (already applicable to CBF)
▪ The establishment of own funds requirements resulting from the introduction of minimum
requirements for equity and eligible liabilities (MREL) as a result of Directive 2014/59/EU
▪ The implementation of the so-called CRR II package and other amendments under Basel III
Eurex Clearing AG’s own funds requirements increased compared with the previous year. Given the
increase in revenues in the past years, own funds requirements for operational risk rose according to the
model, whilst own funds requirements for credit and market remained stable.
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Executive and Supervisory Boards
Management report | Risk report
Financial statements
Notes
Further information
The own funds requirements for operational risk calculated with Eurex Clearing AG’s internal risk model
are higher than the own funds requirements derived from the basic indicator approach, which is based
on the profit and loss statement as prescribed by CRR. Hence, Eurex Clearing AG always applies
additional capital buffers for such risks, surpassing regulatory minimum requirements. Against this
background, banking supervisors requested in 2011 that Eurex Clearing AG increase the basis for the
calculation of regulatory own funds requirements by considering an appropriate share of clearing-related
fees received for the account of operating entities. The own funds requirements for operational risk are
calculated once a year based on a three-year average of historical income, including the assumed
clearing fees, and are therefore not subject to daily fluctuations.
Compliance with the minimum regulatory ratio is maintained at all times due to the sufficient capital
buffer for uncollateralised cash investments.
Composition of own funds requirements
Own funds requirements for
operational risk
Own funds requirements for
credit and market risk
Total capital requirements
31 Dec 2020
31 Dec 2019
31 Dec 2020
31 Dec 2019
31 Dec 2020
Clearstream Holding Group
Clearstream Banking S.A.
Clearstream Banking AG
€m
452.6
307.4
145.2
€m
450.6
324.5
126.2
€m
83.5
56.5
5.1
€m
63.2
53.2
6.5
31 Dec 2019
€m
€m
536.1
363.9
150.3
513.8
377.7
132.7
Eurex Clearing AG
88.0
80.6
16.2
16.2
104.2
96.8
In 2020, the parent company Clearstream Holding AG made a contribution of €50.0 million to the
capital reserve of Clearstream Banking AG. Eurex Clearing AG received contributions to its capital reserve
of €135.0 million in 2020 from the parent company Eurex Frankfurt AG. Further contributions are
scheduled for the coming years, in order to strengthen their capital base.
Regulatory capital ratios according to CRR
Own funds requirements
Regulatory equity
Total capital ratio
31 Dec 2020
31 Dec 2019
31 Dec 2020
31 Dec 2019
31 Dec 2020
Clearstream Holding Group
Clearstream Banking S.A.
Clearstream Banking AG
€m
536.1
363.9
150.3
€m
513.8
377.7
132.7
€m
€m
1,677.7
1,559.5
1,209.9
1,149.2
419.9
369.7
31 Dec 2019
%
%
25.0
26.6
22.4
24.3
24.4
22.3
Eurex Clearing AG
104.2
96.8
749.8
614.8
57.6
50.8
Clearstream Banking AG’s capital requirements according to CSDR are currently significantly above CRR
and CRD IV capital requirements. The capital requirements under Article 47 CSDR do not stipulate a
specific ratio. Instead, the regulatory capital are compared with the capital requirements and has to be at
least the same.
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Management report | Risk report
Financial statements
Notes
Further information
Capital adequacy requirements under CSDR
Own funds requirement for operational, credit and market risk
Other CSDR capital requirements
Total CSDR capital requirements under Article 47 CSDR
CSDR capital
Clearstream Banking AG
31 Dec 2020
€m
150.3
161.1
311.4
419.9
31 Dec 2019
€m
n/a
n/a
n/a
n/a
Eurex Clearing AG’s capital requirements according to EMIR are currently significantly above CRR and
CRD IV capital requirements. As with the CSDR, the capital requirements under Article 16 EMIR do not
stipulate a specific ratio. For both Eurex Clearing AG and European Commodity Clearing AG, this means
that EMIR capital coverage of at least 100 per cent is required. A reporting requirement to the competent
authority – in this case BaFin – is triggered when this ratio falls below 110 per cent.
The capital resources of Eurex Clearing AG and European Commodity Clearing AG are currently well
above the regulatory requirements. As at the reporting date, total equity for both entities as disclosed in
the financial statements was fully available to cover the risks according to Article 16 of EMIR as this
equity fulfils the liquidity requirement. Eurex Clearing AG’s own contribution to the default fund is
€200.0 million. The own contribution to the default fund of European Commodity Clearing AG was also
constant at €15.0 million and so also above the regulatory minimum.
Capital adequacy requirements under EMIR
Eurex Clearing AG
European Commodity Clearing AG
31 Dec 2020
31 Dec 2019
31 Dec 2020
€m
€m
€m
31 Dec 2019
€m
Own funds requirement for operational, credit and market
risk
Other EMIR capital requirements
Total EMIR capital requirements under Article 16 EMIR
Equity
EMIR deductions
Own contribution to default fund
EMIR capital
104.2
86.6
190.8
749.8
0
96.8
76.2
173.0
614.8
0
– 200.0
– 200.0
549.8
414.8
28.8
56.1
84.9
131.9
0
– 15.0
116.9
25.2
41.9
67.1
118.9
0
– 15.0
103.9
82
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Management report | Risk report
Financial statements
Notes
Further information
According to Article 95 CRR, Eurex Repo GmbH and 360 Treasury Systems AG must hold equity of at
least 25.0 per cent of the fixed overhead costs of the previous year.
Composition of own funds/capital requirements
Own funds requirements for
credit and market risk
Own funds requirements on the
basis of fixed overheads
Own funds requirements to be
met
31 Dec 2020
31 Dec 2019
31 Dec 2020
31 Dec 2019
31 Dec 2020
Eurex Repo GmbH
360 Treasury Systems AG
€m
0.7
6.3
€m
0.6
5.2
€m
1.6
3.9
€m
1.8
4.3
31 Dec 2019
€m
€m
2.3
10.2
2.4
9.5
Compliance with own funds requirements
Own funds requirements
Regulatory equity
total capital ratio
31 Dec 2020
31 Dec 2019
31 Dec 2020
31 Dec 2019
31 Dec 2020
Eurex Repo GmbH
360 Treasury Systems AG
€m
2.3
10.2
€m
2.4
9.5
€m
27.6
39.9
€m
21.9
32.8
31 Dec 2019
%
%
94.9
31.2
72.5
27.5
According to Article 21 (b) of the Delegated Regulation (EU) No 150/2013, REGIS-TR S.A. is required to
maintain equity in the amount of at least 50 per cent of annual operating costs.
According to the MAS, EEX Asia Pte. Limited is required to maintain own funds at the rate of either
18 per cent of annual operating revenue or 50 per cent of annual operating costs, depending on which
is higher. Regulatory requirements were met throughout the year. Regarding the anticipated upswing in
the business development of EEX Asia Pte. Limited, we expect slightly increasing own funds
requirements. Its capital base will be adjusted, if required.
Pursuant to Section 39.11 of the Code for Federal Regulation (CFR), Nodal Clear, LLC is obliged to
maintain sufficient financial resources to cover all current costs for a minimum period of twelve months,
whereby highly liquid assets must cover all current costs for at least six months. Regulatory minimum
requirements were met throughout the year.
Compliance with own funds requirements
Own funds requirements
Regulatory equity
Equity ratio
31 Dec 2020
31 Dec 2019
31 Dec 2020
31 Dec 2019
31 Dec 2020
REGIS-TR S.A.
EEX Asia Pte. Limited
Nodal Clear LLC
€m
6.5
0.5
€m
5,7
0.6
24.5
24.5
€m
10.7
1.8
31.9
€m
9,3
1.5
31 Dec 2019
%
%
164.6%
163.2%
360.0%
250.0%
31.1
130.2%
126.9%
The regulatory minimum requirements were complied with at all times by all companies during the
reporting period and in the period up to the preparation of the consolidated financial statements.
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Financial statements
Notes
Further information
Overall assessment of the risk situation by the Executive Board
Deutsche Börse AG’s Executive Board is responsible for risk management throughout the Group and
regularly reviews the entire Group’s risk situation. The Executive Board of Deutsche Börse AG confirms
the effectiveness of the risk management system.
Summary
The risk profile of Deutsche Börse Group did not change significantly in the 2020 financial year.
Deutsche Börse Group’s aggregated risks across all risk types (operational, financial and business risks)
were covered by sufficient risk-bearing capacity on a Group level at all times.
As at 31 December 2020, the Group’s REC amounted to €3,157 million, an almost 17 per cent
increase year-on-year (31 December 2019: €2,696 million).
Outlook
Deutsche Börse Group continually assesses its risk situation. Based on the calculated REC in stress tests
and based on the risk management system, Deutsche Börse AG’s Executive Board concludes that the
available risk cover amount is sufficient. Furthermore, it cannot identify any risk that would endanger the
Group’s existence as a going concern.
In 2021, the Group intends to continue strengthening and expanding its risk management and internal
control system. This includes, for example, further expansion of information security management,
methodological improvements in risk management and the ICS, as well as a closer coordination between
control functions, also by means of a Group-wide governance, risk and compliance tool.
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Deutsche Börse Group | Annual report 2020
Executive and Supervisory Boards
Management report | Report on opportunities
Financial statements
Notes
Further information
Report on opportunities
Organisation of opportunities management
Deutsche Börse Group’s opportunities management aims to identify, evaluate and assess opportunities
as early as possible and to take appropriate measures in order to transform opportunities into business
success.
Deutsche Börse Group evaluates organic growth opportunities in the individual business areas both on
an ongoing basis throughout the year and systematically at the Group level as part of its annual budget
planning process. The process begins with a careful analysis of the market environment, which
considers both what the customer wants, as well as market developments, competitors and regulatory
changes. Ideas for growth initiatives are developed further using uniform, Group-wide templates and
subjected to a profitability analysis. On this basis, the Executive Board of Deutsche Börse AG makes the
final decision as to which initiatives are to be implemented.
Organic growth opportunities
Deutsche Börse Group has a very broad portfolio of products and services with which it covers all areas
of a market infrastructure provider’s value creation chain. This makes the Group one of the most broadly
based stock exchange organisations in the world. In order to maintain and expand this position the
company is pursuing a new medium-term growth strategy called Compass 2023. Among other things
Deutsche Börse Group is focusing on organic growth opportunities in order to achieve its strategic goals.
The Group makes a basic distinction between secular and cyclical opportunities: secular opportunities
arise for example as a result of regulatory changes, new client requirements (such as the growing
demand for exchange-traded solutions to over-the-counter (OTC) transactions) or from the trend whereby
an increasing portion of assets are allocated in passive investment strategies (e.g. index funds). The
company can actively exploit these opportunities. Cyclical opportunities on the other hand cannot be
influenced directly by the Group and are driven by macroeconomic changes. In addition Deutsche Börse
Group intends to seize long-term opportunities arising as a result of the technological transformation.
Growth from M&A is another aspect of the new strategy which is becoming more important.
Secular growth opportunities
When exploiting secular growth opportunities Deutsche Börse Group focuses on product innovations,
increasing market share and winning new customers. The Group expects to see its highest revenue
growth in trading and clearing in the coming years, due in part to the clearing of new financial
derivatives, OTC derivatives and further growth in the trading of energy and gas products. Foreign
exchange trading via 360T is also expected to provide a contribution to net revenue growth. Post-trading
will focus on the further development of investment fund business. The growth focus in pre-trading lies
in expanding the index, analytics and ESG business. The commercial potential of the initiatives
mentioned here is described in more detail below.
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Executive and Supervisory Boards
Management report | Report on opportunities
Financial statements
Notes
Further information
New financial derivatives
Deutsche Börse Group operates Eurex, one of the leading global derivative exchanges. In addition to a
broad range of established international benchmark products, a large number of new products have been
introduced in recent years, such as MSCI, total return, dividend and ESG derivatives. These new
products reflect changes in customer preferences and regulatory requirements. The company anticipates
further strong growth in these and other new products still to be launched in the years ahead.
Clearing of OTC derivatives
The liquidity problems experienced by major market participants during the financial crisis were triggered
by the failure to settle bilateral OTC transactions that were mainly entered into on an unsecured basis. In
light of this, the leading industrialised nations (G20) agreed to create an effective regulatory environment
to make off-exchange derivatives transactions more transparent and more secure. Consequently, the
European Union has created the European Market Infrastructure Regulation (EMIR). EMIR involves the
obligation to clear standardised OTC derivative transactions using a central counterparty. Eurex Clearing
AG and its market partners created an alternative for clearing interest rates swaps in the EU in 2017,
which since then has seen continuous growth in notional outstanding volumes and market share.
Trading and clearing of power and gas products on EEX
Leipzig-based European Energy Exchange AG (EEX) allows Deutsche Börse Group to offer a broad
product range for trading and clearing of spot and derivatives contracts on power and gas as well as
emission certificates. EEX has become the central market for energy in Continental Europe and its
product range includes the markets Germany, France, the Netherlands, Belgium, Italy and Spain. It has
also been active in the US market through its acquisition of Nodal Exchange in 2017. EEX's growth is
mainly based on the growing importance of renewable energies for generating energy. Owing to the high
degree of fragmentation, as well as the inefficiency of OTC markets, the demand for on-exchange trading
and clearing solutions has also increased over recent years. EEX believes it is well positioned in this
changing competitive environment to achieve structural growth and gain additional market share.
Growth in foreign-exchange trading (360T)
360T® is a leading global platform for currency trading, whose broad customer base includes
companies, buy-side customers and banks. By combining 360T's knowledge and experience in the
foreign exchange market with Deutsche Börse Group's IT expertise, the Group will be able to tap the
additional revenue potential. 360T has made progress with various measures for achieving synergies.
including the launch of its FX futures and clearing services. Thanks to its leading position, Deutsche
Börse also benefits from a structural trend: even though, at present, the vast majority of daily foreign-
exchange trading volumes is still executed off-exchange, demand for transparent, electronic multi-bank
trading platforms such is rising.
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Deutsche Börse Group | Annual report 2020
Executive and Supervisory Boards
Management report | Report on opportunities
Financial statements
Notes
Further information
Cross-border settlement of investment funds
Clients of Deutsche Börse Group can use Clearstream’s settlement and custody services for their entire
fund portfolio – covering traditional investment funds, exchange-traded funds (ETFs) as well as hedge
funds. Given that supervisory authorities are also calling for more efficient settlement and custody
solutions in order to guarantee maximum security for client assets under custody, the Group expects to
acquire additional client portfolios in the future. The Group is also continuously expanding its range of
products and services. Clearstream, for example, is extending its range of fund services to include
management of distribution agreements, as well as data compilation through acquisitions. Extending the
product and service range, Clearstream expects to generate additional net revenue by realising revenue
synergies.
Expansion of the index and analytics business
Deutsche Börse Group's objective in its index business is to give the already established European index
provider STOXX an even more global profile, in order to develop and market other indices worldwide (in
addition to its DAX® and STOXX® index families). In addition, Deutsche Börse's index business will
continue to take advantage of the structural trend towards passive investment products (ETFs). An
increasing number of private clients and asset managers now follow this trend; not only are the costs
lower, but many active investment strategies have been returning under-average performance. In order to
support these trends more effectively, in 2019 Deutsche Börse AG acquired Axioma, a leading provider
of portfolio and risk management solutions. The combination created Qontigo; a fully integrated leading
information provider for institutional investors, serving the growing market demand for products and
analysis in this area.
ESG
The trend toward sustainable investing constitutes another structural growth opportunity for Deutsche
Börse Group, which has been given extra momentum by the Covid-19 pandemic. The Group aims to
support market participants with high-quality ESG data, specialised ESG indices and the corresponding
trading and hedging options. A first step in this direction was taken in November 2020 when the
acquisition of Institutional Shareholder Services (ISS) was announced. Furthermore, the company
expects additional structural growth from developing new products and winning new customers.
Cyclical opportunities
In addition to its secular growth opportunities, Deutsche Börse Group has cyclical opportunities, for
instance as a result of positive macroeconomic developments. Although the Group cannot influence
these cyclical opportunities directly, they could lift Deutsche Börse Group’s net revenue and net profit for
the period attributable to Deutsche Börse AG shareholders significantly in the medium term:
◼ The volumes of interest rate derivatives traded on the Group’s derivatives markets could rise if
speculation on trends in long-term yields on German and other European government bonds grows,
and if the spread between the various European government bonds continues to narrow.
◼ In the cash equities and financial derivatives market segment – Xetra (cash equities) and Eurex
(financial derivatives) – an economic recovery after the Covid-19 pandemic and a lasting increase in
investor confidence in capital markets could stimulate trading activity by market participants and
increase trading volumes.
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Deutsche Börse Group | Annual report 2020
Executive and Supervisory Boards
Management report | Report on opportunities
Financial statements
Notes
Further information
Technological opportunities
New developments such as cloud services, in the context of artificial intelligence (AI), big data, robotics,
blockchain technology, combined with the potential for innovation offered by fintech companies, are
driving change in the financial sector. This new wave of technology might help overcome barriers to
market harmonisation, while creating additional efficiency and mitigating risks. This development has
been reinforced by the new environment resulting from the Covid-19 pandemic and is expected to
continue in the years to come. The challenge for incumbent providers is in finding the right way to open
up new business models and innovative technologies.
The Group has optimised its internal processes particularly with regard to cloud services. HR processes,
purchasing and settlement of travel expenses, among others, are now processed in the cloud. This has
led to a significant streamlining of processes, and also has a positive effect on the Group's costs. The
Group is also working on transferring services and processes with clients to the cloud. For instance, the
introduction of new trading platforms and updating of existing infrastructure might be tested beforehand
by clients, via the cloud. This would lead to significantly more agile processes within the Group, as new
processes would be introduced at more frequent intervals, allowing the Group to respond more
effectively to clients’ requirements. Deutsche Börse has signed agreements with a number of key cloud
service providers, positioning itself at the forefront of cloud use in the European financial services sector.
Blockchain technology constitutes another aspect of technological opportunities. It is considered a
disruptive technology at times – but at present, the financial services sector is increasingly exploring its
opportunities. Thanks to its decentralised nature, it facilitates direct interaction between participants,
thus offering the potential for simplifying complex processes. Established market infrastructure providers
such as Deutsche Börse Group, which covers the entire value creation chain from a single source, play
an important role when it comes to tapping this potential – meeting existing industry standards at the
same time. Besides legal and regulatory requirements, this also involves adhering to security standards,
as well as limiting risks and ensuring cost efficiency.
M&A growth opportunities
Growth from M&A is another aspect of the new Compass 2023 strategy which is becoming more
important. Deutsche Börse Group focuses on transactions that are closely related to its strategic growth
areas, which include its index and analytics business, ESG, commodities, foreign exchange trading, fixed
income trading and investment fund services. It aims to accelerate growth in these areas by means of
acquisitions and make the businesses even more scalable.
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Deutsche Börse Group | Annual report 2020
Executive and Supervisory Boards
Management report | Report on expected developments
Financial statements
Notes
Further information
Report on expected developments
The forecast describes Deutsche Börse Group’s expected performance for the 2021 financial year. It
contains statements and information on events in the future, and is based on the company’s
expectations and assumptions at the time of publication of this corporate report. In turn, these are
subject to known and unknown opportunities, risks and uncertainties. Numerous factors, many of which
are outside the company’s control, influence the Group’s success, its business strategy and its financial
results. Should opportunities, risks or uncertainties materialise or should one of the assumptions made
turn out to be incorrect, the Group’s actual performance could deviate either positively or negatively from
the expectations and assumptions contained in the forward-looking statements and information
contained in this report on expected developments.
Developments in the operating environment
Macroeconomic environment
The Covid-19 pandemic unexpectedly pushed the global economy into an unprecedented recession in
2020, but Deutsche Börse Group expects a significant economic recovery over the forecast period. It will
be boosted by government stimulus programmes, ultra-loose monetary policy by central banks
worldwide and an increasing number of Covid-19 vaccinations.
Future development of results of operations
Given its diversified business model and multiple sources of revenue and despite the extraordinary
macroeconomic environment, Deutsche Börse Group believes it is very well positioned to further improve
its results of operations in the medium and long term. This expectation is based on, among other things,
the structural growth opportunities that the Group intends to exploit (for details, see the Opportunities
report), as well as on additional contributions from acquisitions.
As in previous years, Deutsche Börse Group expects net revenue from secular growth opportunities to
increase by at least 5 per cent in the forecast period. The Group is driving this growth through
investments. In doing so, it aims to shift further market share from over-the-counter trading and clearing
to the on-exchange segment and to further expand its positions in existing asset classes by introducing
new products and functionalities and acquiring new customers. In contrast, the development of business
divisions relying on cyclical factors continues to depend mainly on the degree of speculation regarding
the future interest rate development and the level of volatility on equities markets. Given the
exceptionally high market volatility and US interest rate cuts in the first quarter of 2020, it is very likely
that the Group’s cyclical net revenue will go down over the forecast period. Acquisitions, particularly the
acquisition of Fondcenter AG from UBS on 30 September 2020 and the acquisition of ISS as at
25 February 2021, are expected to deliver additional net revenue. In total the company anticipates net
revenue of around €3.5 billion for the forecast period.
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Deutsche Börse Group | Annual report 2020
Executive and Supervisory Boards
Management report | Report on expected developments
Financial statements
Notes
Further information
Within the scope of its growth strategy, Deutsche Börse Group pursues clearly defined principles for
managing operating costs. Essentially, the Group achieves the necessary flexibility in managing operating
costs by a continuous process of improving operating routines. The company expects earnings before
interest, tax, depreciation and amortisation (EBITDA) to go up to around €2.0 billion in the forecast
period. The Group would then be fully in line with its medium-term growth targets of 10 per cent per
year on average for net revenue and EBITDA over the period from 2019 to 2023.
Forecast for results of operations 2021
Net revenue
Earnings before interest, tax, depreciation and amortisation (EBITDA)
Trends in non-financial performance indicators
Based on
2020
€m
3,213.9
1,877.7
Forecast for
2021
€bn
~3.5
~2.0
Initiatives to promote the transparency and security of the markets will continue to be a key focus during
the forecast period, ensuring that Deutsche Börse Group adds value to society. With regard to the
development of the non-financial performance indicators forecast for 2020, the Group was unfortunately
unable to maintain system availability compared with the previous year, which was due to a technical
infrastructure failure. Measures taken in this regard promise significantly higher operational reliability in
the future. Against this background, the company expects that the availability of the trading systems for
the cash and derivatives market will again be at the very high level of previous years in the forecast
period.
Responsible management that focuses on long-term value creation is of considerable importance for
Deutsche Börse Group as a service provider. Given demographic change and the resulting shortage of
specialist staff, the company aims to continue to position itself adequately and – amongst other things –
to increase the number of women in management positions.
Deutsche Börse AG's Executive Board has defined target quotas for women on the two management
levels beneath the Executive Board, in accordance with section 76 (4) AktG, in each case referring to
Deutsche Börse AG. By 31 December 2021, the proportion of women holding positions in the first and
second management levels beneath the Executive Board is planned to reach 15 per cent and 20 per
cent, respectively.
Moreover, as early as in 2010, the Executive Board had adopted a voluntary commitment to increase the
share of women holding middle and upper management positions to 20 per cent by 2020, and of
women holding lower management positions to 30 per cent during the same period. The Group
maintains this ambition, and has extended the scope of its voluntary commitment, over and above legal
requirements. Firstly, the target figures determined in this context relate to Deutsche Börse Group
(including subsidiaries) worldwide. Secondly, the definition of management levels/positions was
extended to also include heads of teams, for example.
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Deutsche Börse Group | Annual report 2020
Executive and Supervisory Boards
Management report | Report on expected developments
Financial statements
Notes
Further information
Future development of the Group’s financial position
The company expects operating cash flow, which is Deutsche Börse Group’s primary funding instrument,
to remain clearly positive in the future. The Group expects that two significant factors will influence
changes in liquidity. Firstly, the company plans to invest around €200 million in intangible assets and
property, plant and equipment at Group level. These investments will serve primarily to develop new
products and services in the Eurex (financial derivatives) and Clearstream (post-trading) segments, and
to enhance existing ones. Secondly, the Executive Board and Supervisory Board of Deutsche Börse AG
will propose a dividend of €3.00 per share to the Annual General Meeting to be held in May 2021. This
would represent a cash outflow of about €551 million. Apart from the above, no other material factors
were expected to impact the Group’s liquidity at the time the combined management report was
prepared. As in previous years, the Group assumes that it will have a sound liquidity base in the forecast
period due to its positive cash flow from operating activities, adequate credit lines (for details see note
23 to the consolidated financial statements), and flexible management and planning systems.
Deutsche Börse Group generally aims to distribute dividends equivalent to between 40 and 60 per cent
of net profit for the period attributable to the shareholders of Deutsche Börse AG. Within this range, the
Group manages the actual payout ratio mainly relative to the business performance and based on
continuity considerations. In addition, the company plans to invest the remaining available funds
primarily into the Group’s inorganic growth. Should the Group be unable to invest these funds, additional
distributions, particularly share buy-backs, represent another opportunity for the use of funds. To
maintain its strong credit ratings at Group level, the company aims at a ratio of net debt to EBITDA of no
more than 1.75, and a ratio of free funds from operations to net debt of at least 50 per cent.
Overall assessment by the Executive Board
The Executive Board of Deutsche Börse AG believes that the Group continues to be very well positioned
in terms of international competition, thanks to its comprehensive offering along the securities trading
value chain and its innovative strength. This being the case, the Executive Board expects to see a
positive trend in the Group' s results of operations over the long term. The purpose of the measures as
part of the growth strategy is to further accelerate the Group’s growth. In this context, the Group aims to
become more agile and effective and sharpen its client focus, in order to turn Deutsche Börse into the
global market infrastructure provider of choice, with a top ranking in all its business areas. Deutsche
Börse Group will endeavour to further expand its secular growth areas, and to increase their contribution
to net revenue again by at least 5 per cent. Taking other cyclical and consolidation effects into account,
the Executive Board expects net revenue to rise to around €3.5 billion in the forecast period. The
Executive Board expects EBITDA to go up to around €2.0 billion in the forecast period. Overall, the
Executive Board assumes on this basis that cash flow from operating activities will be clearly positive
and that, as in previous years, the liquidity base will be sound. The overall assessment by the Executive
Board is valid as at the publication date for this combined management report.
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Deutsche Börse Group | Annual report 2020
Executive and Supervisory Boards
Management report | Deutsche Börse AG (diclosures based on the HGB)
Financial statements
Notes
Further information
Deutsche Börse AG (diclosures based on the HGB)
The annual financial statements of Deutsche Börse AG are prepared in accordance with the provisions of
the German Commercial Code (Handelsgesetzbuch, HGB) and the supplementary provisions of the
German Stock Corporation Act (Aktiengesetz, AktG) and are the underlying basis for the explanations
that follow.
Business and operating environment
General position
Deutsche Börse AG is the parent company of Deutsche Börse Group. The parent company’s business
activities include first and foremost the cash and derivatives markets, which are reflected in the Eurex
(financial derivatives) and Xetra (cash equities) segments, as well as index business. Deutsche Börse AG
also operates essential parts of Deutsche Börse Group’s information technology. The development of
Deutsche Börse Group’s Clearstream (post-trading) segment is reflected in Deutsche Börse AG’s business
development, primarily due to the profit and loss transfer agreement with Clearstream Holding AG.
Deutsche Börse Group’s IFS (investment fund services) segment, in contrast, plays a lesser role for
Deutsche Börse AG. Nonetheless, Deutsche Börse AG’s business and operating environment is
essentially the same as that of Deutsche Börse Group; this is described in the “Macroeconomic and
sector-specific environment” section.
Deutsche Börse AG’s course of business in the reporting period
Deutsche Börse AG’s revenues increased by 9.8 per cent in the 2020 financial year, so above the
company’s expectations. Total costs (staff costs, amortisation of intangible assets and depreciation of
property, plant and equipment and other operating expenses) rose by 8.3 per cent. Net profit went up by
40.7 per cent compared with the previous year. Deutsche Börse AG's Executive Board considers the
company’s performance in the 2020 financial year to be good.
Performance figures for Deutsche Börse AG
Sales revenue by segment
2020
€m
2019
€m
Change
%
2020
€m
2019
€m
Change
%
Sales revenue
1,563.3
1,423.5
Total costs
957.7
884.6
Net income from
equity investments
765.2
542.9
EBITDA
1,470.2
1,181.2
Net profit for the
period
Earnings per share
(€)
1,161.9
825.9
6.33 1)
4.50 1)
40.7
1) Calculation based on weighted average of shares outstanding
9.8
8.3
40.9
24.5
40.7
Eurex (financial
derivatives)
EEX (commodities)
360T (foreign exchange)
Xetra (securities trading)
Clearstream (post-trading)
IFS (investment fund
services)
Qontigo (index and
analytic business)
1,017.7
924.41)
18.2
0.6
387.3
111.9
14.8
0.4
352.01)
91.61)
23.7
15.0
10.1
23.0
50.0
10.0
22.2
58.0
3.9
25.3
-84.6
Total
1,563.3
1,423.5
9.8
1) Previous year adjusted
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Deutsche Börse Group | Annual report 2020
Executive and Supervisory Boards
Management report | Deutsche Börse AG (diclosures based on the HGB)
Financial statements
Notes
Further information
Results of operations of Deutsche Börse AG
Deutsche Börse AG’s net revenue rose by 9.8 per cent in 2020 to €1,563.3 million (2019:
€1,423.5 million). At €1,017.7 million, the largest contribution to revenue came from the Eurex
(financial derivatives) segment (2019: €924.4 million). The breakdown of revenue by company
segment is provided in the “Sales revenue by segment” table.
For more information on the development of the Eurex (financial derivatives) segment, please refer to the
“Eurex (financial derivatives) segment” section.
The revenue contributed by the EEX (commodities) and 360T (foreign exchange) segments is generated
mainly by IT services. Therefore, the explanations in the “EEX (commodities) segment” and “360T
(foreign exchange) segment” sections relate only indirectly to Deutsche Börse AG. The earnings situation
of the Qontigo (index business) segments is shown in the section “Qontigo (index business) segment”. It
is worth noting that the business development of the STOXX Ltd. subsidiary does not directly impact
upon the business performance of Deutsche Börse AG. Comments on the business development in the
Xetra (cash equities) segment can largely be found in the “Xetra (cash equities) segment” section.
Revenues attributable to the Clearstream (post-trading) and IFS (investment fund services) segments
result from the IT services Deutsche Börse AG provides to companies belonging to the Clearstream
Holding subgroup.
Other operating income went up to €50.4 million during the year under review (2019: €36.3 million).
Out of the total revenues in 2020 €232.8 million belong intercompany revenues.
The company’s total costs of €957.7 million were up 8.3 per cent year-on-year (2019: €884.6 million).
For a breakdown, please refer to the table “Overview of total costs”. Staff costs were down by 2.2 per
cent year-on-year during the year under review, to €243.1 million (2019: €248.6 million). The decline
in staff costs is mainly due to the restructuring programme and streamlining of the management
structure. Staff numbers increased from an average of 1,472 in the prior year to 1,572 in the 2020
financial year.
Amortisation of intangible assets and depreciation of property, plant and equipment increased to a total
of €63.2 million in the year under review (2019: €59.1 million).
Other operating expenses were up 12.9 per cent year-on-year, to €651.4 million (2019:
€576.9 million).
The intercompany expenses for 2020 result to €333.7 million.
Deutsche Börse Group’s result from equity investments for the 2020 financial year totalled €765.2
million (2019: €542.9 million). It consisted of dividend income of €348.2 million (2019: €305.7
million), and income from the transfer of profits of €401.4 million (2019: €228.1 million).
Earnings before interest, tax, depreciation and amortisation (EBITDA) increased to €1,470.2 million
(2019: €1,181.2 million). Net profit for the period amounted to €1,161.9 million, representing an
increase of 40.7 per cent (2019: €825.9 million).
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Deutsche Börse Group | Annual report 2020
Executive and Supervisory Boards
Management report | Deutsche Börse AG (diclosures based on the HGB)
Financial statements
Notes
Further information
Development of profitability
Deutsche Börse AG’s return on equity expresses the ratio of net income after taxes to average equity
available to the company during the course of 2020. Return on equity increased from 29.9 per cent in
2019 to 37.5 per cent in the year under review.
Financial position of Deutsche Börse AG
As at the reporting date, cash and cash equivalents amounted to €518.4 million
(2019: €849.3 million) and included bank deposits on current accounts as well as term deposits and
other short-term deposits. This position is for the most part made up from cash.
Deutsche Börse AG has external credit lines available of €605.0 million (2019: €605.0 million), which
were not yet drawn as at 31 December 2020. Moreover, the company has a commercial paper
programme in place, which allows for flexible and short-term financings of up to €2.5 billion, in various
currencies. At the end of the year there was no commercial paper outstanding.
Through a Group-wide cash-pooling system, Deutsche Börse AG ensures an optimum allocation of
liquidity throughout Deutsche Börse Group; in this way, the parent entity makes sure that all subsidiaries
are in a position to honour their payment obligations at any time.
Deutsche Börse AG has issued three corporate bonds with a nominal value of €600 million each and
one corporate bond with a nominal value of €500 million. For more details concerning these bonds,
please refer to the “Financial position” section.
In the 2020 financial year, Deutsche Börse AG generated cash flow from operating activities of
€889.9 million (2019: €945.1 million). The reduction is particularly due to significantly higher
receivables from affiliated companies.
Cash flow from investing activities amounted to €-366.9 million (2019: €495.0 million). The decline is
related particularly to the investments made in the reporting year. The equity investments in Clearstream
Holding AG increased by €150 million, in DBS Inc. by €98.4 million and in 360T Treasury Systems AG
by €37.5 million.
Overview of total costs
Cash flow statement (condensed)
Staff costs
Depreciation and
amortisation
Other operating
expenses
2020
€m
2019
€m
243.1
248.6
63.2
59.1
651.4
576.9
Total
957.7
884.6
Change
%
-2.2
6.8
12.9
8.3
2020
€m
2019
€m
Cash flow from operating activities
889.9
945.0
Cash flow from investing activities
Cash flow from financing activities
-366.9
-521.5
495.0
-486.1
Cash and cash equivalents as at
31 December
48.8
47.3
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Deutsche Börse Group | Annual report 2020
Executive and Supervisory Boards
Management report | Deutsche Börse AG (diclosures based on the HGB)
Financial statements
Notes
Further information
Cash flow from financing activities amounted to €-521.5 million in the year under review
(2019: €-486.1 million). A dividend of €531.9 million was paid for the 2019 financial year.
Cash and cash equivalents amounted to €48.8 million as of the reporting date 31 December 2020
(2019: €47.3 million). It is made up of liquid funds of €518.4 million (2019: €849.3),
less cash-pooling liabilities of €469.6 million (2019: €801.9 million).
Assets of Deutsche Börse AG
As at 31 December 2020, the non-current assets of Deutsche Börse AG amounted to €5,672.4 million
(2019: €5,349.8 million). At €5,309.3 million, most of the non-current assets was attributable to
shares in affiliated companies (2019: €5,007.5 million), mainly from the investments in Clearstream
Holding AG, 360 Treasury Systems AG, Eurex Frankfurt AG and Qontigo GmbH.
Deutsche Börse AG’s investments in intangible assets and property, plant and equipment totalled
€61.4 million during the year under review (2019: €60.4 million). This rise was related to payments on
account for construction in progress in various locations. Depreciation and amortisation in 2020
amounted to €63.2 million (2019: €59.1 million).
Receivables from and liabilities to affiliated companies include invoices for intra-Group services and
amounts invested by Deutsche Börse AG within the scope of cash-pooling arrangements. The receivables
from affiliated companies relate to invoices for intra-Group services, but primarily to Clearstream Holding
AG for the company’s profit transfer of €401.4 million. Liabilities to affiliated companies resulted mainly
from cash-pooling amounting to €469.6 million (2019: €801.9 million) and trade liabilities of
€135.3 million (2019: €46.1 million).
Working capital amounted to €-249.6 million in 2020 (2019: €-903.5 million). The change stems
mainly from the receivable from Clearstream Holding AG for profit transfer.
Non-current assets (condensed)
Intangible assets
Property, plant and equipment
2020
€m
109.2
83.2
2019
€m
108.5
85.6
Financial assets
5,480.0
5,155.7
Non-current assets as at 31
December
5,672.4
5,349.8
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Financial statements
Notes
Further information
Deutsche Börse AG employees
The number of employees at Deutsche Börse AG (according to HGB)1 rose by 121 in the reporting year
and totalled 1,636 as at 31 December 2020 (31 December 2019: 1,515). The average number of
employees at Deutsche Börse AG in the 2020 financial year was 1,572 (2019: 1,472).
During the 2020 financial year, 70 employees left Deutsche Börse AG, resulting in a staff turnover rate
of 4 per cent.
On 31 December 2020, Deutsche Börse AG had employees at six locations around the world.
Information on the countries, regions, the employees’ age structure and length of service are provided in
the tables that follow.
As at 31 December 2020, 80 per cent of Deutsche Börse AG’s employees were graduates. The ratio is
based on the number of employees holding a degree from a university, college or vocational academy, as
well as the employees who have completed degrees abroad. In 2020, the company invested an average
of 3 days in training per employee.
Age structure of employees
Employee length of service
Under 30 years
30−39 years
40−49 years
More than 50 years
31 Dec 2020
190
530
407
509
Total Deutsche Börse AG
1,636
%
11.6
32.4
24.9
31.1
100
Under 5 years
5−15 years
More than 15 years
Total Deutsche Börse AG
31 Dec 2020
783
386
467
1,636
%
47.9
23.6
28.5
100
Employees per country/region
Germany
Great Britain
France
Other European countries
Asia
31 Dec
2020
1,605
20
5
4
2
Total Deutsche Börse AG
1,636
%
98.1
1.2
0.3
0.3
0.1
100
1 No employees are i.e. legal representatives of the corporation, apprentice and employees on parental leave
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Financial statements
Notes
Further information
Remuneration report of Deutsche Börse AG
The principles governing the structure and design of the remuneration system at Deutsche Börse AG are
the same as those for Deutsche Börse Group, so reference is made to the Remuneration report for
Deutsche Börse Group.
Corporate governance statement in accordance with to section 289f HGB
The corporate governance statement in accordance with section 289f HGB is the same as that for
Deutsche Börse Group. Reference is therefore made to the section “Corporate governance statement”.
Opportunities and risks facing Deutsche Börse AG
The opportunities and risks of Deutsche Börse AG and the activities and processes to manage these
risks and opportunities are largely the same as for Deutsche Börse Group, so reference is made to the
Risk report and the Opportunities report. As a rule, Deutsche Börse AG shares the opportunities and
risks of its equity investments and subsidiaries in accordance with its equity interest. Risks that could
potentially threaten the existence of the Eurex Clearing AG subsidiary would also have a direct influence
on Deutsche Börse AG based on a letter of comfort issued by Deutsche Börse AG. As of the reporting
date, there were no risks jeopardising the company’s existence. Further information on the letter of
comfort issued to Eurex Clearing AG is available in the section “Other financial obligations and off-
balance sheet transactions” in the notes to the annual financial statements of Deutsche Börse AG.
The description of the internal control system (ICS), required by section 289 (4) of the HGB, is provided
in the “Group management” section.
Forecast for Deutsche Börse AG
The expected developments in Deutsche Börse AG’s business are largely subject to the same factors as
those influencing Deutsche Börse Group. The relevant disclosures and quantitative information on
Deutsche Börse AG are provided in the Forecast.
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Further information
Remuneration report
I
Introduction
The remuneration report explains the general principles of the remuneration system for the members of
the Executive Board and the Supervisory Board of Deutsche Börse AG and describes the amount and
structure of the remuneration of the Board members for financial year 2020. The report complies with
the requirements of the Handelsgesetzbuch (German Commercial Code – “HGB”), the International
Financial Reporting Standards (IFRS) and German Accounting Standard No. 17. Furthermore, the
remuneration report already largely takes into account the requirements of Section 162 of the
Aktiengesetz (German Stock Corporation Act “AktG”), which will not be mandatory until the year 2021.
In March 2020, the German Corporate Governance Code (GCGC) as amended on December 16, 2019,
also came into force. The Supervisory Board of Deutsche Börse focuses on good corporate governance
and transparency – also with regard to the remuneration of its Board members. Both the remuneration
system for the Executive Board and the remuneration system for the Supervisory Board as well as the
remuneration report comply with the principles, recommendations and suggestions of the GCGC.
The present remuneration report describes the remuneration of the Executive Board under the
remuneration systems 2020 and 2016 in accordance with the applicable regulatory requirements. The
Supervisory Board intends to submit a new remuneration system for the Executive Board to the Annual
General Meeting in May 2021 for approval. The remuneration under this new system will then be
reported in 2022. The corresponding remuneration report will be submitted to the Annual General
Meeting 2022 for approval.
II
Review of financial year 2020
The previous remuneration system for the Executive Board members was partially modified by a
resolution of the Supervisory Board with effect from 1 January 2020, and submitted to the Annual
General Meeting on 19 May 2020, for approval. The Annual General Meeting approved this system by
65.45% of votes cast. In addition, the adjusted remuneration system for members of the Supervisory
Board was submitted to the Annual General Meeting 2020 for approval and was approved by 99.25%.
A clear link between the remuneration of the members of the Executive Board and their performance
(pay for performance) is of crucial importance for the Supervisory Board. In addition to a strong financial
performance of Deutsche Börse Group and the achievement of central strategic goals, this also includes
responsibility for employees, the environment and society.
Despite the global economic impact of the COVID-19 pandemic, Deutsche Börse Group was able to
continue its growth path and achieve a good financial performance in 2020. Based on the whole
financial year 2020, Deutsche Börse Group was not affected by the impact of COVID-19 to such an
extent that would have required a change in targets. There was no need to resort to short-time working
or other government aid in this context. Likewise, the dividend paid to the shareholders was increased
once again.
Adjusted net income growth as the key financial performance criterion in the performance bonus and the
resulting target achievement in financial year 2020 are as follows:
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Further information
Adjusted net income growth
Adjusted net income growth compared to 2019
Target achievement adjusted net income growth
8.9%
119.1%
A detailed presentation of the target achievement of the financial target and the individual targets in the
performance bonus 2020 is provided in the section „Target achievement in the performance bonus in
financial year 2020“.
The 2016 tranche of the performance share plan (PSP) ended at the end of financial year 2020. The
total target achievement of the tranche 2016 of 210.9 per cent reflects the strong growth of Deutsche
Börse Group over the past five years. Targets were clearly exceeded in both performance criteria
“adjusted net income growth” and “total shareholder return (TSR) performance”. The high target
achievement in the relative TSR reflects not only the strong absolute performance of the Deutsche Börse
share on the capital market, but also the above-average relative performance compared to the relevant
peer group.
Target achievement PSP Tranche 2016
Ø Target achievement
adjusted net income growth
171.8%
Target achievement
TSR Performance
250.0%
Total target achievement
PSP Tranche 2016
210.9%
A detailed presentation of the target achievement of the 2016 tranche of the PSP is provided in the
section „ Payout of the PSP tranche 2016“.
III
Executive Board remuneration in financial year 2020
General principles of the remuneration system for the Executive Board
1.
Within the framework of its corporate strategy, Deutsche Börse’s goal is to strengthen – and further
expand – its position as a leading European provider of financial market infrastructure with global growth
ambitions over the long term. Hence, the company’s primary strategic focus is on growth. Deutsche
Börse Group aligns its actions with long-term and sustainable company success, assuming its corporate
responsibility holistically. In line with these targets, the remuneration system for the Executive Board is
based on three pillars:
▪ Firstly, a clear performance orientation and a highly detailed assessment based on ambitious internal
and external targets ensure the focus is on the company’s goal of above-average growth.
▪ Secondly, multi-year bases for assessment, long-term elements, and the use of deferred payouts
discourage excessive risk-taking.
▪ Thirdly, the remuneration system promotes a strong equity culture, and in this way helps to align the
interests of shareholders, management and other stakeholders. Particularly the individual targets set
incentives for sustainable action.
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Further information
1.1
Procedure for determining, implementing and reviewing the remuneration system
The Supervisory Board, advised by its Nomination Committee, determines the remuneration system for
the members of the Executive Board. The remuneration system adopted by the Supervisory Board is
submitted to the Annual General Meeting. The Supervisory Board reviews the remuneration system on a
regular basis, supported by its Nomination Committee, and submits the remuneration system to the
Annual General Meeting for approval in the event of any material changes – in any case, every four
years. The Supervisory Board may retain the support of independent external experts when necessary.
1.2
Determination and appropriateness of the remuneration of the Executive Board
Executive Board remuneration is set by the Supervisory Board on the basis of the remuneration system
in force; the Nomination Committee is responsible for preparing the Supervisory Board’s decision. In
doing so, the Supervisory Board shall ensure that remuneration is appropriate to the corresponding
Executive Board member’s tasks and performance, as well as to the company’s financial situation, and
that it does not exceed the prevailing market level of remuneration without specific reasons. For this
purpose, the Supervisory Board shall conduct a horizontal and vertical peer-group comparison on a
regular basis (at least every two years).
For this purpose, the Supervisory Board may seek the advice of an external expert who is independent of
the Executive Board and the company. The horizontal comparison is conducted on the basis of relevant
national and international peer groups. The Supervisory Board selects the peer groups on the basis of
country, size and industry as defined by the AktG. Due to their comparable size and taking into account
the country criterion, DAX companies were most recently used as a suitable peer group for conducting a
horizontal comparison. In addition, European financial institutions as customers and competitors of
Deutsche Börse were used as a further peer group. In order to reflect the industry criterion, stock
exchange operators served as an additional peer group.
In accordance with the recommendations of the GCGC, the Supervisory Board also takes into account
the relationship between the remuneration levels of the Executive Board and that of senior management
and the entire workforce, as well as the development over time of the various salary levels over a two-
year period in order to assess the customary practice within the company. In this context, senior
management comprises two management levels below the Executive Board. The Supervisory Board
considers the remuneration levels compared to employees of Deutsche Börse AG as well as to the overall
workforce of Deutsche Börse Group.
The Supervisory Board takes the results of this examination into account when setting target
remuneration for members of the Executive Board, and thus also ascertains that Executive Board
remuneration is appropriate.
A target remuneration in line with prevailing market levels is assigned to each Executive Board member.
This target remuneration is predominantly based on the skills and experience required for that member’s
tasks, as well as on the target remuneration for the other Executive Board members. The remuneration
for the Chairman of the Executive Board (Chief Executive Officer) is roughly twice the target
remuneration for the other Executive Board members.
The target remuneration for the Executive Board members was not adjusted in financial year 2020. The
respective service contracts with Dr Theodor Weimer, Dr Christoph Böhm, Dr Thomas Book and Dr
Stephan Leithner were also renewed without changing the target remuneration. Ms Heike Eckert was
appointed for the first time with a corresponding target remuneration.
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Further information
In accordance with GCGC recommendation G.8, targets and reference parameters set by the Supervisory
Board for variable remuneration components for each new financial year may not be changed
retrospectively.
Measures to avoid conflicts of interest
1.3
Deutsche Börse Group’s rules for avoiding and dealing with conflicts of interest are also applicable to the
procedures for determining, implementing and reviewing the remuneration system. Where conflicts of
interest occur in exceptional cases, they must be disclosed. The Board members concerned may be
excluded from discussion and decision-making processes, amongst other consequences. No conflicts of
interest occurred in financial year 2020.
Applicable remuneration systems in financial year 2020
1.4
Executive Board members are remunerated in accordance with the remuneration system applicable to
them. The previous remuneration system for the Executive Board members was adopted by the
Supervisory Board, effective 1 January 2016, and was approved by the Annual General Meeting with
84.19% on 11 May 2016 in accordance with Section 120 (4) AktG (old wording) (hereinafter
“remuneration system 2016”). This remuneration system was adjusted to some extent, effective
1 January 2020, by a Supervisory Board resolution. The adjusted remuneration system was submitted
to the Annual General Meeting on 19 May 2020 for approval in accordance with Section 120a (1) AktG
and was approved by 65.45% (hereafter “remuneration system 2020”). Thereby, the adjusted
remuneration system for the Executive Board applies to all service contracts with Executive Board
members entered into or extended on or after 1 January 2020. Due to the appointment of Ms Heike
Eckert as member of the Executive Board as of 1 July 2020, the remuneration system 2020 has been
applied to her. In accordance with the GCGC 2020 and Section 26j of the Einführungsgesetz zum
Aktiengesetz (Introductory Law to the German Stock Corporation Act, EGAktG), the existing remuneration
system 2016 shall continue to apply to all existing service contracts with members of the Executive
Board. Accordingly, the remuneration system 2016 is applied to Dr Theodor Weimer, Dr Christoph
Böhm, Dr Thomas Book, Dr Stephan Leithner, Mr Gregor Pottmeyer and Ms Hauke Stars.
2.
Overview of the remuneration system for members of the Executive Board
Target remuneration and structure
2.1
In designing the remuneration structure, the Supervisory Board strives to ensure that the overall
structure of the remuneration of the Executive Board is as uniform as possible. The remuneration system
for Executive Board members consists of non-performance-related and performance-related remuneration
components.
The non-performance-related remuneration components consist of the base salary, contractual ancillary
benefits and pension contributions. The performance-related component consists of the performance
bonus as well as the performance shares.
On aggregate, base salary, contractual ancillary benefits, pension contributions, the target value of the
performance bonus and the target value of the performance shares make up the target total
remuneration.
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Further information
To ensure that the remuneration of the Executive Board follows the principle of pay for performance, the
target direct remuneration (base salary, performance bonus and performance shares) is made up of
around 70 per cent performance-related remuneration components. In addition, around 70 per cent of
the performance-related remuneration has a multi-year assessment basis and is also share-based. This
ensures that the remuneration structure is geared to the sustainable and long-term development of the
company and that the variable remuneration, which is based on the achievement of long-term goals,
exceeds the short-term goals and aligns the interests of the Executive Board with those of the
shareholders.
Base salary accounts for around 30 per cent of the target direct remuneration. The performance bonus,
which is paid out after the respective financial year, accounts for around 22.5 per cent of the target
direct remuneration. The performance bonus, which the members of the Executive Board will not receive
until after three further financial years, also accounts for around 22.5 per cent of the target direct
remuneration. The performance shares account for around 25 per cent of the target direct remuneration.
In addition, the company’s share ownership guidelines require Executive Board members to invest a
substantial amount of money in Deutsche Börse AG shares during their term of office.
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Notes
Further information
Maximum remuneration
2.2
The maximum annual remuneration – comprising base salary, variable remuneration components,
ancillary benefits and pension expenses – is capped at an aggregate gross amount of €9.5 million (total
cap) for each Executive Board member. In the remuneration system 2016, ancillary benefits are not
included in the maximum remuneration, whereas they are included in the remuneration system 2020.
In the interest of shareholders, the company will continue to provide competitive incentives for
outstanding personal performance and the company's long-term sustainable success to Executive Board
members, whilst preventing any unintended excesses which might otherwise be possible.
3.
The remuneration components in detail
3.1
Non-performance-related remuneration components
3.1.1 Base salary
The members of the Executive Board receive a fixed base salary, which is payable in twelve equal
monthly instalments. When determining the amount of the base salary, the Supervisory Board is guided
by the knowledge and experience of the respective member of the Executive Board relevant for the tasks.
3.1.2 Contractual ancillary benefits
Contractual ancillary benefits are granted to members of the Executive Board, such as the provision of an
appropriate company car for business and personal use. They also receive taxable contributions towards
private pensions. In addition, the company may take out insurance cover for them (within reason).
Currently this includes personal accident insurance and directors & officers (D&O) insurance for
Executive Board members. Other ancillary benefits may include a temporary or permanent
reimbursement of expenses for a second household, journeys home, moving costs, cost coverage for
security measures, the use of car pool vehicles or transport services.
3.1.3 Provisions for retirement and risk protection
As a further non-performance-related component of the remuneration system, the members of the
Executive Board receive coverage for old-age as well as in the event of their incapacity to work and
death.
The members of the Executive Board are generally entitled to receive retirement benefits upon reaching
the age of 60, provided that they are no longer in the service of Deutsche Börse AG at that time – for Dr
Thomas Book, this applies on reaching the age of 63. The Supervisory Board reviews and determines
the pensionable income that is used as the basis for retirement benefits. Executive Board members
normally receive a defined contribution pension. An exception to this rule applies to members of the
Executive Board who continue being subject to an existing agreement from prior appointments within
Deutsche Börse Group and may therefore receive a defined benefit pension instead. Among the active
members of the Executive Board, the defined benefit pension system only applies to Dr Thomas Book.
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Further information
Defined contribution pension system
The defined contribution pension system applies to Dr Theodor Weimer, Dr Christoph Böhm, Ms Heike
Eckert, Dr Stephan Leithner and Mr Gregor Pottmeyer.
Within the framework of the defined contribution pension system, the company makes an annual capital
contribution to the scheme for each calendar year that a member serves on the Executive Board. This
contribution is determined by applying an individual contribution rate to the pensionable income. The
pensionable income is determined and regularly reviewed by the Supervisory Board. The annual capital
contributions calculated in this way bear interest of 3 per cent per annum. Benefits are generally paid in
the form of a monthly pension; however, Executive Board members have the option of choosing a one-off
capital payment or five instalments.
Pension entitlements are vested in accordance with the Betriebsrentengesetz (German Company
Pensions Act).
Defined benefit pension system
Among the active members of the Executive Board, the defined benefit pension system only applies to Dr
Thomas Book.
After reaching the contractually agreed retirement age, members of the Executive Board covered by the
defined benefit pension system receive the replacement rate of their individual pensionable income as a
pension. A precondition for this is that the Executive Board member in question served on the Executive
Board for at least three years and was reappointed at least once. As with the defined contribution
pension system, the pensionable income is determined and regularly reviewed by the Supervisory Board.
The replacement rate depends on the Executive Board member’s term of office and the number of
reappointments and amounts to a maximum of 50 per cent. Payout terms and vesting rules are in line
with those applicable for the defined contribution pension system.
Members of the Executive Board who have a defined benefit pension are entitled to an early retirement
pension if the company does not renew their contract, unless the reasons for this are attributable to the
Executive Board member or would justify termination without notice of the Executive Board member’s
contract. The amount of the early retirement pension is calculated in the same way as the retirement
benefits – by applying the applicable replacement rate to the pensionable income. Once again, a
precondition is that the Executive Board member served on the Executive Board for at least three years
and was reappointed at least once. Members of the Executive Board who have a defined contribution
pension are not eligible for an early retirement pension.
Benefits in case of permanent incapacity to work and death
A significant component of the pension commitments relates to risk coverage for Executive Board
members in the event of permanent incapacity to work or death.
In the event that a member of the Executive Board becomes permanently incapable of working, the
company is entitled to retire him or her. Executive Board members are deemed to be permanently
incapable of working if they are unable to perform their professional activities for more than six months,
and if they are not expected to regain their capacity to work within a further six months. In such cases,
those Executive Board members who have a defined benefit pension plan receive the amount calculated
by applying the applicable replacement rate to the pensionable income.
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Further information
Executive Board members with a defined contribution pension plan receive the plan assets that have
accrued at the time when the benefits fall due, plus a supplement corresponding to the full annual
pension contribution that would have been due in the year in which the Executive Board member left the
company’s service, multiplied by the number of years between the time at which the benefits fell due
and the Executive Board member reaching the age of 60.
If an Executive Board member dies, his or her spouse receives 60 per cent and each dependent child
receives 10 per cent of the above amount (25 per cent for full orphans), up to a maximum of 100 per
cent of the pension contribution.
Transitional payments
In the event that an Executive Board member becomes permanently incapable of working, the defined
benefit pension agreements for Executive Board members provide for a transitional payment. The
amount of this payment corresponds to the target variable remuneration (performance bonus and
performance shares) in the year in which the event triggering the benefits occurs. It is paid out in two
tranches in the two following years. If an Executive Board member dies, his or her spouse receives 60
per cent of the transitional payment.
The pensionable income and the present value of the pension commitments existing as of 31 December
2020, are shown per member of the Executive Board on a consolidated basis in the following tables:
Retirement benefits (part 1)
Pensionable
income
Replacement rate
Present value/defined
benefit obligation
Pension expense
as at
31 Dec
2020
as at
31 Dec
2019
%
%
as at
31 Dec
2020
€ thous.
as at
31 Dec
2019
€ thous.
2020
€ thous.
2019
€ thous.
50.0
48.0
40.0
48.0
48.0
40.0
–
40.0
48.0
–
48.0
48.0
40.0
2,026.2
957.3
1,126.8
856.0
208.2
976.2
513.3
–
643.7
4,610.9
4,162.4
2,376.7
2,312.6
386.7
218.3
378.3
317.3
280.6
466.2
419.6
–
406.1
297.3
274.4
–
11,054.2
8,589.3
2,708.0
1,863.6
Defined contribution system
Theodor Weimer
Christoph Böhm
Heike Eckert
Stephan Leithner
Gregor Pottmeyer
Hauke Stars
Total
2020
€ thous.
1,200.0
500.0
500.0
500.0
500.0
500.0
3,700.0
Retirement benefits (part 2)
Pensionable
income
Replacement rate
Present value/defined
benefit obligation
Pension expense
as at
31 Dec
2020
as at
31 Dec
2019
%
%
as at
31 Dec
2020
€ thous.
as at
31 Dec
2019
€ thous.
2020
€ thous.
2020
€ thous.
2019
€ thous.
Defined benefit system
Thomas Book
Total
500.0
500.0
50.0
50.0
50.0
7,354.1
6,992.8
50.0
7,354.1
6,992.8
514.8
514.8
384.9
384.9
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Further information
3.2
Performance-related remuneration components
The performance-related remuneration components account for the majority of the remuneration of
Executive Board members. The performance-related remuneration is divided into a performance bonus
and performance shares. In order to ensure the sustainable and long-term development of Deutsche
Börse and to align the interests of the Executive Board and shareholders, the performance-related
remuneration components are mainly designed to be multi-year and share-based. Performance-related
remuneration is largely calculated on a long-term basis, with various performance criteria being assessed
over a period of five years (performance shares) or four years (share-based performance bonus: one-year
performance period and three-year holding period for shares to be invested). The cash component of the
performance bonus (annual payout) is the only short-term variable remuneration component.
The following overview illustrates the pay-for-performance aspect as the central idea behind the
Executive Board remuneration of Deutsche Börse based on the minimum target achievement, a target
achievement of 100 per cent and the maximum target achievement using the example of an Ordinary
Board Member (remuneration system 2020, not taking into account the share price performance):
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Further information
3.2.1 Performance bonus
Principles of the performance bonus
The performance bonus is split 50:50 between a share-based component (share-based performance
bonus) and a cash component.
Based on the PBP, a performance bonus with a certain target value is indicated to the Executive Board
members for each year. The extent to which Executive Board members have met their targets for the
performance bonus is determined for each financial year on the basis of the PBP. The basic assessment
procedure is based on two components:
Two-thirds of the bonus reflect the increase in adjusted net profit attributable to Deutsche Börse AG
shareholders for the remuneration year concerned (hereinafter referred to as net income) and thus reflect
the strategic growth orientation of Deutsche Börse.
One-third reflects the Executive Board members’ individual performance, which is assessed particularly
with a view to whether strategic and operating targets with strategic relevance were achieved. This way,
the performance bonus recognizes the implementation of Group Deutsche Börse’s business strategy, thus
contributing to the company’s long-term development. Once the Supervisory Board has determined the
overall extent to which Board members have met their targets using these two components, it may then
review this figure and adjust it using a performance multiplier in exceptional situations if so required;
this can be done either for individual Executive Board members or for the Executive Board as a whole.
The total performance bonus is paid out in cash, at the latest together with the regular salary payment
for the calendar month following the approval of Deutsche Börse AG’s consolidated financial statements
for the year. To strengthen the long-term incentive effect, the Executive Board members are obliged to
invest 50 per cent of the total payout after tax in Deutsche Börse AG shares, which they have to hold for
at least three years.
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Further information
Adjusted net income growth
Net income growth is calculated independently of the financial planning by comparing the adjusted net
income for the remuneration year with the prior-year figure. The target achievement rate in the
remuneration system 2020 may range between 0 per cent and 250 per cent: a decrease in net income
of 10 per cent or more corresponds to a 0 per cent target achievement rate (floor). From the Supervisory
Board's point of view, the resulting linear target achievement curve between the floor and the target
value reflects to a high degree the desired performance culture of Deutsche Börse. At the same time, if
net income declines slightly the Supervisory Board considers the floor to be appropriate for the one-year
performance period in the remuneration system 2020.
Such net income fluctuations are often also based on external factors and should not lead to a total loss
of the performance bonus.
Where net income remains stable (i.e. unchanged year-on-year), this is deemed to represent a target
achievement rate of 57.14 per cent, while a 7.5 per cent increase is equivalent to a target achievement
rate of 100 per cent (target value). Net income growth of 18.75 per cent or more corresponds to a 250
per cent target achievement rate (cap) to reward above-average net income growth even more. This
means that there is a stronger incentive to achieve net income growth of between 7.5 per cent and
18.75 per cent.
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Further information
In the remuneration system 2016, the target achievement of adjusted net income growth is determined
as follows:
The adjusted net income growth is also determined independently of the budget by comparing the
adjusted net income growth for the remuneration year with that of the previous year. Target achievement
may range between 0 per cent and 200 per cent: a net income decrease of 20 per cent or more
corresponds to a target achievement of 0 per cent (floor). Stable net income, i.e. unchanged from the
previous year, leads to a target achievement of 75 per cent. A net income increase of 7.5 per cent
corresponds to a target achievement of 100 per cent (target value). An increase in net income of 15 per
cent or more corresponds to a target achievement of 200 per cent (cap).
Adjusted net income growth
The Supervisory Board defines the Executive Board members’ individual targets and their weighting for
the upcoming financial year (or as of the appointment date in the event that a member is elected during
the year). Individual targets can also be determined for the entire Executive Board or several Board
members collectively. Individual targets should contribute to an implementation of the corporate strategy
as well as to a long-term, sustainable development at Deutsche Börse Group and can be financial as
well as non-financial. In addition, sustainability targets according to environmental, social and
governance (ESG) criteria are part of the individual targets. The Supervisory Board must select at least
one performance criterion from the catalogue of sustainability topics each year, unless it waives this in
individual cases due to extraordinary circumstances. By setting financial and non-financial targets and
assessing their achievement, the Supervisory Board ensures that the implementation of the corporate
strategy is pursued and sustained and that Deutsche Börse Group's corporate success is taken into
account in a holistic manner.
The individual targets must be demanding and ambitious. Furthermore, they must be specific enough to
allow for target achievement to be measured, i.e., specific figures or expectations for target achievement
are determined. To avoid dilution, not more than four targets per year are set for each Executive Board
member.
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Further information
The targets are derived from the Group or corporate strategy or its respective parts and include their
implementation. Strategic projects and initiatives can directly serve to implement the corporate strategy,
as can operating measures. The latter can also be agreed as targets if they indirectly contribute to
strategy implementation, for example by creating an essential foundation for the company’s structure,
organization, function, and long-term development.
Catalogue of performance criterions
Corporate strategy implementation
Objectives of the corporate strategy
Business development
Product development and innovation
Gaining market share
Exploring new markets
Strategic projects
M&A
Sustainability
Customer satisfaction
Employee satisfaction
Diversity
Risk management
Compliance
Corporate governance
Corporate Social Responsibility
Company structure, organisation, and function
Carbon emission reduction/considerate use of resources
Efficiency enhancement
Liquidity planning
Reporting and communication
Succession planning
Advised by the Nomination Committee, the Supervisory Board assesses the extent to which each
member of the Executive Board has achieved his or her targets after the end of the remuneration year in
question. A floor of 0 per cent and a cap of 200 per cent have been defined for the target achievement
rate of individual targets.
Determining the performance multiplier
The performance multiplier for the performance bonus can be used by the Supervisory Board in special
situations when considering additional success and performance aspects not taken into account
sufficiently in the previously determined targets. As such, the performance multiplier can be used e.g. in
the event of mergers, acquisitions or divestments to allow the Supervisory Board to account for any
dilution of equity or to reflect the achievement of qualitative or quantitative targets (especially integration
parameters) when finally assessing the extent to which an Executive Board member has achieved his or
her overall targets. The performance multiplier has a minimum value of 0.8 and a maximum value of
1.2; it is multiplied by the performance assessment for the performance bonus, taking the 233.33 per
cent cap (remuneration system 2016: 200 per cent) into account.
Target achievement in the performance bonus in financial year 2020
Two thirds of the performance bonus are based on year-to-year growth in adjusted net income.
Deutsche Börse AG’s adjusted net income increased from €1,105.6 million in financial year 2019 to
€1,204.3 million in financial year 2020. It differs from the unadjusted net income (€1,087.8 million)
due to the adjustment for special effects resulting from organisational restructuring measures, among
others from the implementation of the corporate strategy “Roadmap 2020” and M&A activities. In
addition, costs for legal disputes were adjusted.
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Further information
Adjusted net income growth
Net income
Adjustments
Adjusted net income
2020
€m
1,087.8
116.5
1,204.3
2019
€m
1,003.9
101.7
1,105.6
Adjusted net income growth
–
–
8.9%
The adjusted net income achieved corresponds to a growth of 8.9 per cent. This results in a target
achievement of 119.1 per cent in the remuneration system 2020 as well as in the remuneration system
2016:
Adjusted net income growth in the remuneration system 2020
Lower limit
100% value
Upper limit
Actual value
Adjusted net
income 2020
Adjusted net
income growth
compared to
€m
884.5
1,188.5
1,271.4
1,204.3
2019
–20.0%
7.5%
15.0%
8.9%
Target
achievement
0.0%
100.0%
200.0%
119.1%
Adjusted net income growth in the remuneration system 2016
Lower limit
100% value
Upper limit
Actual value
Adjusted net
income 2020
Adjusted net
income growth
compared to
€m
995.0
1,188.5
1,312.9
1,204.3
2019
-10.0%
7.5%
18.75%
8.9%
Target
achievement
0.0%
100.0%
250.0%
119.1%
In addition, one third of the performance bonus is based on individual targets. These include both
collective and individual targets. At the beginning of financial year 2020, four individual targets were set
for each Executive Board member.
The targets to be met collectively by the Executive Board included the implementation of the corporate
strategy “Roadmap 2020”, steering business activities in particular with regard to regulation applicable
throughout the Group, and sustainability targets.
In order to implement the corporate strategy “Roadmap 2020”, one requirement was for the Executive
Board to achieve a structural growth target. At the same time, inorganic growth opportunities were to be
encouraged in the context of the defined roadmap.
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Business activities were to be managed by the Executive Board in such a way that, in particular,
professional handling of the extensive and diverse regulatory standards of Deutsche Börse Group was
assured and, if necessary, improvement measures were implemented.
The focus of the targets to be met collectively by the Executive Board was on sustainability. On the one
hand, the Executive Board was responsible for increasing employee satisfaction and implementing the
multi-year people strategy. On the other hand, it had to set up a monitoring system for measuring and
improving sustainability performance in the environmental, social and governance (ESG factors) matters
within Deutsche Börse Group.
In the area of individual targets, CEO Dr Theodor Weimer was measured against the development and
acceptance of the new, multi-year corporate strategy “Compass 2023”.
The performance of the Executive Board members Dr Thomas Book and Dr Stephan Leithner was
assessed in particular on the basis of their business results within the budget targets.
As CFO, Mr Gregor Pottmeyer was responsible for organising the CFO function smoothly and efficiently
and planning its future strategic direction.
Ms Heike Eckert took over responsibility for “HR and Compliance” and the function of Labour Director on
1 July 2020. Her individual target for 2020 was to familiarize herself quickly and effectively with these
central areas.
In the CIO/COO department, led by Dr Christoph Böhm, the primary responsibility was to ensure
operational stability.
The Nomination Committee of the Supervisory Board and the Supervisory Board discussed the
individual targets in detail. A decision on their achievement was made on the basis of a detailed
presentation and assessment of the performance of the Executive Board members collectively and
individually.
The performance multiplier was determined on the basis of the general target achievement with respect
to the collective targets and the respective contribution of each Executive Board member.
The following table summarizes the target achievement resulting from the adjusted net income growth
and the individual targets, as well as the individual performance multiplier and the resulting total target
achievement for each member of the Executive Board:
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Notes
Further information
Target achievement Performance Bonus 2020
Target achievement
adjusted net income
Individual target
Executive Board member
Theodor Weimer
Christoph Böhm
Thomas Book
Heike Eckert
Stephan Leithner
Gregor Pottmeyer
Hauke Stars
growth
119.1%
119.1%
119.1%
119.1%
119.1%
119.1%
119.1%
achievement Total target achievement
Performance multiplier
130.0%
100.0%
120.0%
110.0%
120.0%
120.0%
100.0%
122.7%
112.7%
119.4%
116.1%
119.4%
119.4%
112.7%
1.2
1.0
1.1
1.0
1.1
1.1
1.0
3.2.2 Performance shares
At the beginning of each financial year, the performance share plan (PSP) allots a potential number of
so-called performance shares to each member of the Executive Board. The number of initial (phantom)
performance shares thus allotted is determined by dividing the amount of the individual target
remuneration (in euros) by the average Xetra® closing price of Deutsche Börse shares in the calendar
month preceding the start of the performance period. Target achievement regarding performance shares
is determined after the end of a five-year performance period. The respective target achievements are
assessed on the basis of two components: firstly, the adjusted net income growth over the five-year
period, and, secondly, the relative total shareholder return (TSR) for Deutsche Börse shares compared to
the TSR for the STOXX® Europe 600 Financials index (the industry benchmark) during the same period.
The PSP thus supports the implementation of the growth-oriented corporate strategy on the one hand
and especially Deutsche Börse AG’s long-term development via the long-term performance period on the
other. The final number of phantom performance shares is determined from the total target achievement
rate for net income growth and TSR performance during the performance period, multiplied by the
number of phantom performance shares granted at the outset. The final number of phantom
performance shares determined in this manner is multiplied by the average Xetra® closing price for
Deutsche Börse shares in the calendar month preceding the end of the performance period. Thus, the
performance of the Deutsche Börse share over the five-year performance period is also taken into
account. This results in the amount to be paid out to purchase the shares (adjusted for the dividends per
share paid out during the performance period).
Each payout amount is generally due in three equal instalments: the first instalment is due at the latest
together with the regular salary payment for the calendar month following the approval of Deutsche
Börse AG’s consolidated financial statements for the year after the end of the performance period in
question; the second and third instalments are due at the corresponding dates in the two years
subsequent to the payment of the first instalment. The members of the Executive Board are obliged to
invest the amount paid out after tax in Deutsche Börse AG shares.
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Further information
Adjusted net income growth for the performance shares
The Supervisory Board determines and sets the target achievement rate for adjusted net income growth
at the end of each financial year during the five-year performance period. The target achievement rate at
the end of the performance period in question is the average of the annual target achievement rates for
each of the five years. Target achievement rates may range between 0 and 250 per cent. If net income
declines or remains unchanged year-on-year, this is deemed to represent a target achievement rate of 0
per cent (floor), while a 7.5 per cent increase corresponds to a target achievement rate of 100 per cent.
Net income growth of 18.75 per cent (remuneration system 2020) or more corresponds to a 250 per
cent target achievement rate (cap). The target achievement curve is completely linear between floor and
cap.
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Further information
Notwithstanding this target achievement curve, net income growth of 15 per cent or more corresponds
to a target achievement of 250 per cent (cap) in the remuneration system 2016.
TSR performance
The total shareholder return (TSR) performance for Deutsche Börse shares is derived from Deutsche
Börse AG’s ranking relative to the companies included in the STOXX® Europe 600 Financials index. The
target achievement rates for Executive Board members can range from 0 per cent (floor) to 250 per cent
(cap): A 0 per cent target achievement rate is assumed where Deutsche Börse AG’s five-year relative
TSR does not exceed the median, i.e. where it is lower than that for at least half of the index
constituents. Where Deutsche Börse AG’s TSR has performed in line with 60 per cent of index
constituents, this represents a target achievement rate of 100 per cent. The cap of 250 per cent target
achievement is reached when the TSR for Deutsche Börse shares equals or exceeds the TSR of 90 per
cent (remuneration system 2020) of the companies included in the benchmark index. The target
achievement curve for TSR performance is thus completely linear. The ambitious target achievement
curve, with payouts only starting once half of the index companies have been outperformed, the
Supervisory Board also emphasizes the pay-for-performance aspect of Executive Board remuneration in
terms of total shareholder return.
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Notes
Further information
Notwithstanding this target achievement curve, the maximum possible target achievement of 250 per
cent is reached in the remuneration system 2016 as soon as Deutsche Börse AG’s TSR ranks in the top
20 per cent of companies in the index – in other words, if it is in the 80th percentile of the index or
higher.
Grant of the PSP tranche 2020
The PSP tranche 2020 was granted at the beginning of the financial year 2020. The relevant allocation
price for the PSP tranche 2020 was €138.48. The performance period of the PSP tranche 2020 ends
on 31 December 2024. The individual target value, the allocation price, the number of phantom
performance shares granted and the possible maximum number of performance shares at the end of the
performance period can be summarized as follows for the individual Executive Board members:
Grant of the PSP tranche 2020
Executive Board member
Target value € thous.
Share price at grant €
Number of performance
shares granted
Maximum number of
performance shares
possible (250% target
achievement)
Theodor Weimer
Christoph Böhm
Thomas Book
Heike Eckert
Stephan Leithner
Gregor Pottmeyer
Hauke Stars
1,300.0
560.0
516.7
258.3
560.0
560.0
473.6
138.48
138.48
138.48
138.48
138.48
138.48
138.48
9,388
4,044
3,731
1,866
4,044
4,044
3,421
23,470
10,110
9,328
4,665
10,110
10,110
8,553
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Notes
Further information
Payout of the PSP tranche 2016
The five-year performance period of the 2016 PSP tranche ended at the end of financial year 2020.
For the performance criterion “adjusted net income growth”, an average target achievement of 171.8 per
cent was determined for financial years 2016 to 2020. For the performance criterion “TSR
performance”, the target achievement was 250.0 per cent for the five-year performance period
(1 January 2016 until 31 December 2020). Consequently, a total target achievement of 210.9 per cent
was achieved in the PSP tranche 2016.
Payout of the PSP tranche 2020
Adjusted net income
growth
Target achievement
2016
2017
2018
2019
2020
Ø
Total target
achievement
PSP tranche
2016
250.0%
111.3%
250.0%
139.4%
108.6%
171.8%
TSR performance
Percentile rank
16
Target
achievement
250.0%
210.9%
The following table provides a summarized overview of the key elements of the PSP tranche 2016:
PSP tranche 2016
Executive Board members
in office in financial year
2020
Gregor Pottmeyer
Hauke Stars
Target value
Share price
€ thous.
at grant €
560.0
516.7
78.35
78.35
Number of
performance
shares
granted
Final number
of
performance
shares
Share price at
the end of
performance
period €1)
Payout
amount €
thous.
Total target
achievement
7,148
210.9%
15,077
138.22
2,274.7
6,595
210.9%
13,911
138.22
2,098.8
1) Plus dividends paid per share of €12.65 during the performance period.
The payout of the PSP tranche 2016 will be made in three equal tranches.
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Further information
Additional information
2020 total expense for share-based payments
2020
2019
Theodor Weimer
Christoph Böhm
Thomas Book
Stephan Leithner
Gregor Pottmeyer
Hauke Stars
Heike Eckert
Summe
Carrying
amount as at
the balance
sheet date
(total)
€ thous.
Expense
recognised
(total)
€ thous.
Carrying
amount as at
the balance
sheet date
(total)
€ thous.
Expense
recognised
(total)
€ thous.
1,554.7
3,696.5
1,553.6
2,141.8
429.6
494.5
535.7
1,567.6
1,434.1
30.7
759.8
1,008.4
1,092.7
5,623.4
5,176.2
30.7
287.9
396.9
430.3
2,191.4
2,021.8
0.0
330.2
513.9
557.0
4,055.8
3,742.1
0.0
6,046.9
17,387.7
6,881.9
11,340.8
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Notes
Further information
Number of phantom shares
Number of
phantom shares
on the
grant date
Adjustments of
number of
phantom
shares since
the grant date
Number of
phantom shares
as at
31 Dec 2020
Theodor Weimer
Christoph Böhm
Thomas Book
Stephan Leithner
Gregor Pottmeyer
Hauke Stars
Tranche 2020
Tranche 2019
Tranche 2018
9,388
11,997
13,353
3,647
5,344
12,847
Total 2018 to 2020 tranches
Tranche 2020
Tranche 2019
Tranche 2018
Total 2018 to 2020 tranches
Tranche 2020
Tranche 2019
Tranche 2018
Total 2018 to 2020 tranches
Tranche 2020
Tranche 2019
Tranche 2018
Total 2018 to 2020 tranches
Tranche 2020
Tranche 2019
Tranche 2018
Tranche 2017
Tranche 2016
Total 2016 to 2020 tranches
Tranche 2020
Tranche 2019
Tranche 2018
Tranche 2017
Tranche 2016
Total 2016 to 2020 tranches
4,044
5,168
959
3,731
4,769
2,655
4,044
5,168
2,876
4,044
5,168
5,752
7,464
7,148
3,421
4,768
5,307
6,887
6,595
1,571
2,282
923
1,449
2,123
2,554
1,571
2,302
2,767
1,571
2,302
5,534
7,017
7,929
1,329
2,124
5,106
6,474
7,316
Heike Eckert
Tranche 2020
1,866
725
Total 2020 tranche
Total 2016 to 2020 tranches
13,035
17,341
26,200
56,576
5,615
7,450
1,882
14,947
5,180
6,892
5,209
17,281
5,615
7,470
5,643
18,728
5,615
7,470
11,286
14,481
15,077
53,929
4,750
6,892
10,413
13,361
13,911
49,327
2,591
2,591
213,379
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Notes
Further information
4.
Share ownership guidelines
In addition, the company’s share ownership guidelines, being part of the remuneration system, require
Executive Board members to invest a substantial amount of money in Deutsche Börse AG shares during
their term of office.
Deutsche Börse’s share ownership guidelines are a key element in order to ensure that remuneration for
the Executive Board is further aligned with the shareholders’ interest as well as the long-term corporate
performance of Deutsche Börse AG, as provided for by the strategy. Under these guidelines, members of
the Executive Board are obliged to continuously hold a multiple of their average gross base salary in
Deutsche Börse AG shares during their term of office. A multiple of three applies to the CEO, and a
multiple of two to the other Executive Board members.
Shares belonging to the following three categories are used to assess compliance with the share
ownership guidelines: shares purchased from the performance bonus; shares received under the
allocation of performance shares; and shares held in private ownership.
For members of the Executive Board, the share purchase agreed upon under the performance bonus
plan and the performance share plan, as well as any share purchase from private funds, must be settled
by a service provider appointed by Deutsche Börse AG and assigned by the beneficiary; the service
provider invests the investment amounts in Deutsche Börse AG shares on behalf of the beneficiary
independently, i.e. without any influence from the beneficiary or the company. The share purchase takes
place during the first four trading days (consecutive calendar days) in June every year.
In each case, such shareholdings must be built up over a three-year period. The shareholdings of
Mr Gregor Pottmeyer and Dr Theodor Weimer were evaluated as of 31 December 2018 and
31 December 2020 respectively and were found to comply with the share ownership guidelines.
Compliance with regard to the shareholdings of Dr Christoph Böhm, Dr Thomas Book and
Dr Stephan Leithner will be evaluated on 31 December 2021 at the latest. In case of Ms Heike Eckert,
the build-up period ends on 31 December 2023.
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Notes
Further information
Share Ownership Guidelines
Executive Board
member
Theodor Weimer
Christoph Böhm
Thomas Book
Heike Eckert
Stephan Leithner
Gregor Pottmeyer
Required
Status quo
Percentage of base salary
Amount € thous.
salary End of build-up period
Percentage of base
300.0%
200.0%
200.0%
200.0%
200.0%
200.0%
4,500.0
1,440.0
1,300.0
1,300.0
1,440.0
1,440.0
327.0%
31 December 2020
145.0%
31 December 2021
166.0%
31 December 2021
0.0%
31 December 2023
165.0%
31 December 2021
317.0%
31 December 2018
5.
Recovery (clawback) or reduction (malus) of variable remuneration
On the basis of the service contract for Executive Board members and the remuneration system 2020
the Supervisory Board is entitled in events of serious misconduct by Executive Board members to
demand repayment of all or part of the variable remuneration under the performance bonus plan or the
performance share plan (compliance clawback), or to reduce variable remuneration not yet disbursed
accordingly (compliance malus). Any such clawback is limited to the calendar year in which the reason
for the claim arose. The Supervisory Board is entitled to assert a clawback claim even after an Executive
Board member has left the company, for a period of up to two years following termination of the service
contract. Any claims for damages remain unaffected by the clawback of variable remuneration.
In financial year 2020 Deutsche Börse AG did not recover or reduce any variable remuneration
components.
6.
Termination of the service contract
Severance payments
6.1
In the event that an Executive Board member’s contract of service is terminated early for a reason other
than good cause, any payments made to the Executive Board member may not exceed the remuneration
for the residual term of his or her contract of service, and may also not exceed the value of two total
annual remuneration payments (severance cap). The payment is calculated on the basis of the total
remuneration for the past financial year and, where appropriate, the expected total remuneration for the
current financial year.
Performance bonus claims and performance shares that have been granted will lapse if the company
has good cause for an extraordinary termination of the Executive Board member’s employment or if an
Executive Board member terminates his or her contract before the end of the performance period without
good cause and without reaching a mutual agreement.
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Notes
Further information
Change of Control
6.2
According to the remuneration system 2020, there is no provision for a change of control.
According to the remuneration system 2016, in the event of a change of control, the following rules
apply: If an Executive Board member is asked to stand down within six months of a change of control,
he or she is entitled to a severance payment equal to two total annual remuneration payments or the
value of the residual term of his or her contract of service, where this is less than two years. This
entitlement may be increased to 150 per cent of the severance payment. If an Executive Board member
resigns within six months of the change of control taking effect because his or her position as a member
of the Executive Board is negatively impacted to a significant degree as a result of the change of control,
the Supervisory Board may decide at its discretion whether to grant a severance payment in the above-
mentioned amount. In the case of a change of control, all current performance periods shall end on the
day on which the contract of service is terminated. The corresponding performance shares will be settled
early.
Post-contractual non-compete clause
6.3
A post-contractual non-compete clause applies to members of Deutsche Börse AG’s Executive Board.
This means that the Executive Board members in question are contractually prohibited from acting for a
competing company, or from undertaking competing activities, for one year following the end of their
service.
Compensation of 75 per cent of the member’s final fixed remuneration and 75 per cent of his or her
final cash bonus is payable during the non-compete period. Pension agreement benefits are offset
against the compensation. In addition, 50 per cent of other earnings are deducted if these – together
with the compensation – exceed the Executive Board member’s final remuneration.
The company may waive the post-contractual non-compete clause before the Executive Board member’s
contract of service ends.
According to remuneration system 2020, any severance payments will also be offset against
compensation, in addition to pension agreement benefits.
7.
Further contractual terms
Loans to Executive Board members
7.1
The company did not grant any loans or advances to members of the Executive Board during financial
year 2020, and there are no loans or advances from previous years to members of the Executive Board.
Remuneration from group companies
7.2
In financial year 2020, Dr Thomas Book received a part of his remuneration from Eurex Frankfurt AG
from 1 January 2020 to 30 June 2020.
Individual disclosure of the Executive Board remuneration
8.
The following tables contain the figures for the individual Executive Board remuneration components
mentioned above for financial years 2020 and 2019. The information disclosed in accordance with
Section 314 HGB is shown in the “Benefits received” tables.
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Notes
Further information
As in previous years, the remuneration amounts are reported individually on the basis of the sample
tables “benefits granted” and “benefits received” in the version of the GCGC dated 7 February 2017, in
order to ensure a transparent presentation of the respective grants and inflows for the financial years
2020 and 2019.
Benefits granted (part 1)
Fixed remuneration
Ancillary benefits
Total
One-year variable remuneration
Cash component performance bonus
(50%)
Theodor Weimer
(CEO)
Christoph Böhm
(CIO/COO)
2020
2020
(min)
2020
(max)
2019
2020
2020
(min)
2020
(max)
2019
€ thous. € thous. € thous. € thous. € thous. € thous. € thous. € thous.
1,500.0 1,500.0 1,500.0 1,500.0
720.0
720.0
720.0
720.0
61.4
61.4
61.4
26.8
55.3
55.3
55.3
67.1
1,561.4 1,561.4 1,561.4 1,526.8
775.3
775.3
775.3
787.1
1,100.0
0.0 2,200.0 1,100.0
560.0
0.0 1,120.0
560.0
Multi-year variable remuneration
2,400.0
0.0 no max. 2,400.0 1,120.0
0.0
no max. 1,120.0
Share component performance bonus
(50%, 3-year holding period)1)
1,100.0
0.0 no max. 1,100.0
560.0
0.0
no max.
560.0
Performance shares (5-year term)2)
1,300.0
0.0 no max. 1,300.0
560.0
0.0
no max.
560.0
Total
Pension expense
Total remuneration
5,061.4 1,561.4 no max. 5,026.8 2,455.3
775.3 no max. 2,467.1
1,126.8 1,126.8 1,126.8
466.2
386.7
386.7
386.7
419.6
6,188.2 2,688.2 9,500.03) 5,493.0 2,842.0 1,162.0 9,500.03) 2,886.7
Benefits granted (part 2)
Fixed remuneration
Ancillary benefits
Total
One-year variable remuneration
Cash component performance bonus
(50%)
Stephan Leithner
Gregor Pottmeyer
(CFO)
2020
2020
(min)
2020
(max)
2019
2020
2020
(min)
2020
(max)
2019
€ thous. € thous. € thous. € thous. € thous. € thous. € thous. € thous.
720.0
720.0
720.0
720.0
720.0
720.0
720.0
720.0
17.3
17.3
17.3
19.3
35.2
35.2
35.2
34.5
737.3
737.3
737.3
739.3
755.2
755.2
755.2
754.5
560.0
0.0 1,120.0
560.0
560.0
0.0 1,120.0
560.0
Multi-year variable remuneration
1,120.0
0.0 no max. 1,120.0 1,120.0
0.0
no max. 1,120.0
Share component performance bonus
(50%, 3-year holding period)1)
560.0
0.0 no max.
560.0
560.0
0.0
no max.
560.0
Performance shares (5-year term)2)
560.0
0.0 no max.
560.0
560.0
0.0
no max.
560.0
Total
Pension expense
Total remuneration
2,417.3
737.3 no max. 2,419.3 2,435.2
755.2 no max. 2,434.5
378.3
378.3
378.3
406.1
317.3
317.3
317.3
297.3
2,795.6 1,115.6 9,500.03) 2,825.4 2,752.5 1,072.5 9,500.03) 2,731.8
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Financial statements
Notes
Further information
Benefits granted (part 3)
Thomas Book
Heike Eckert
(Director of Labour Relations,
since 1 July 2020)
2020
2020
(min)
2020
(max)
2019
2020
2020
(min)
2020
(max)
2019
€ thous. € thous. € thous. € thous. € thous. € thous. € thous. € thous.
Fixed remuneration
Ancillary benefits
Total
One-year variable remuneration
Cash component performance bonus
(50%)
650.0
650.0
650.0
650.0
325.0
325.0
325.0
32.2
32.2
32.2
31.6
12.5
12.5
12.5
682.2
682.2
682.2
681.6
337.5
337.5
337.5
516.7
0.0 1,033.3
516.7
258.3
0.0
516.7
Multi-year variable remuneration
1,033.4
0.0 no max. 1,033.4
516.6
0.0
no max.
Share component performance bonus
(50%, 3-year holding period)1)
516.7
0.0 no max.
516.7
258.3
0.0
no max.
Performance shares (5-year term)2)
516.7
0.0 no max.
516.7
258.3
0.0
no max.
Total
Pension expense
Total remuneration
2,232.3
682.2 no max. 2,231.7 1,112.4
337.5 no max.
514.8
514.8
514.8
384.9
218.3
218.3
218.3
2,747.1 1,197.0 9,500.03) 2,616.6 1,330.7
555.8 9,500.03)
–
–
–
–
–
–
–
–
–
–
Benefits granted (part 4)
Fixed remuneration
Ancillary benefits
Total
One-year variable remuneration
Cash component performance bonus (50%)
Multi-year variable remuneration
Share component performance bonus
(50%, 3-year holding period)1)
Performance shares (5-year term)2)
Total
Pension expense
Total remuneration
Hauke Stars
(until 30 June 2020)
2020
2020
(min)
2020
(max)
2019
€ thous. € thous. € thous. € thous.
325.0
325.0
325.0
650.0
14.8
14.8
14.8
30.1
339.8
339.8
339.8
680.1
258.3
0.0
516.7
516.7
516.6
0.0
no max. 1,033.4
258.3
0.0
no max.
516.7
258.3
0.0
no max.
516.7
1,114.7
339.8 no max. 2,230.2
140.3
140.3
140.3
274.4
1,255.0
480.1 9,500.03) 2,504.6
1) The level of target achievement is capped at 200 per cent in the remuneration system 2016. The level of target achievement is capped at 233.3 per cent in the
remuneration system 2020. No cap on the share price performance – therefore, no maximum can be stated (no max.).
For more information, please refer to the “Corporate governance statement” section.
2) The target achievement rates for net income and total shareholder return, and for the maximum number of performance shares are all capped at 250 per cent. No
cap on the share price performance – therefore, no maximum can be stated for the individual remuneration components (no max.).
For more information, please refer to the “Corporate governance statement” section.
3) The total remuneration (excluding ancillary benefits) is capped at €9.5 million.
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Financial statements
Notes
Further information
In financial year 2020, the maximum remuneration paid to an Executive Board member amounts to
€5.9 million, i.e. the maximum remuneration was not reached.
Benefits received (part 1)
Theodor Weimer
(CEO)
Christoph Böhm
(CIO/COO)
Thomas Book
Heike Eckert
(Director of Labour
Relations,
since 1 July 2020)
2020
2019
€ thous. € thous. € thous. € thous. € thous. € thous. € thous. € thous.
2020
2020
2019
2020
2019
2019
Fixed remuneration
Ancillary benefits1)
Total
1,500.0 1,500.0
720.0
720.0
650.0
650.0
325.0
61.4
26.8
55.3
67.1
32.2
31.6
12.5
1,561.4 1,526.8
775.3
787.1
682.2
681.6
337.5
One-year variable remuneration
Cash component performance bonus
(50%)
1,619.8 1,515.4
631.2
823.5
678.5
693.7
299.8
Multi-year variable remuneration
1,619.8 1,515.4
631.2
823.5
678.5
693.7
299.8
Share component performance bonus
(50%, 3-year holding period)
Performance shares 2016 (5-year
term)2)
1,619.8 1,515.4
631.2
823.5
678.5
693.7
299.8
–
–
–
–
–
–
–
Total
4,801.0 4,557.6 2,037.7 2,434.1 2,039.2 2,069.0
937.1
Pension expense
1,126.8
466.2
386.7
419.6
514.8
384.9
218.3
Total remuneration (German Corporate
Governance Code)3)
5,927.8 5,023.8 2,424.4 2,853.7 2,554.0 2,453.9 1,155.4
plus performance shares
1,300.0 1,300.0
560.0
560.0
516.7
516.7
258.3
less variable share component
–
–
–
–
–
–
–
less pension expense
-1,126.8
-466.2
-386.7
-419.6
-514.8
-384.9
-218.3
Total remuneration (section 314 of the
HGB)
6,101.0 5,857.6 2,597.7 2,994.1 2,555.9 2,585.7 1,195.4
Number of phantom shares4)
9,388
11,998
4,044
5,168
3,731
4,769
1,866
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
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Financial statements
Notes
Further information
Benefits received (part 2)
Stephan Leithner
Gregor Pottmeyer
(CFO)
Hauke Stars
(until 30 June 2020)
Total4)
2020
2019
€ thous. € thous. € thous. € thous. € thous. € thous. € thous. € thous.
2020
2019
2020
2019
2020
2019
Fixed remuneration
Ancillary benefits1)
Total
720.0
720.0
720.0
720.0
325.0
650.0 4,960.0 4,960.0
17.3
19.3
35.2
34.5
14.8
30.1
228.7
209.4
737.3
739.3
755.2
754.5
339.8
680.1 5,188.7 5,169.4
One-year variable remuneration
Cash component performance bonus
(50%)
735.4
771.5
735.4
732.2
291.2
643.4 4,991.3 5,179.7
Multi-year variable remuneration
735.4
771.5 1,493.6
732.2
641.0
643.4 6,099.3 5,179.7
Share component performance bonus
(50%, 3-year holding period)
Performance shares 2016 (5-year
term)2)
735.4
771.5
735.4
732.2
291.2
643.4 4,991.3 5,179.7
–
–
758.2
–
349.8
– 1,108.0
0.0
Total
2,208.1 2,282.3 2,984.2 2,218.9 1,272.0 1,966.9 16,279.3 15,528.8
Pension expense
378.3
406.1
317.3
297.3
140.3
274.4 3,082.5 2,248.5
Total remuneration (German Corporate
Governance Code)3)
2,586.4 2,688.4 3,301.5 2,516.2 1,412.3 2,241.3 19,361.8 17,777.3
plus performance shares
560.0
560.0
560.0
560.0
516.7
516.7 4,271.7 4,013.4
less variable share component
–
–
758.2
–
349.8
– -1,108.0
0.0
less pension expense
-378.3
-406.1
-317.3
-297.3
-140.3
-274.4 -3,082.5 -2,248.5
Total remuneration (section 314 of the
HGB)
2,768.1 2,842.3 2,786.0 2,778.9 1,438.9 2,483.6 19,443.0 19,542.2
Number of phantom shares4)
4,044
5,168
4,044
5,168
1,866
4,769 28,983.0 37,040.0
1) Ancillary benefits (other benefits) comprise salary components such as taxable contributions towards private pensions, company car arrangements, travel
arrangements, and expenses for tax and legal advice.
2) Payout is made in three equal installments in the three financial years following the end of the performance period.
3) The total remuneration (excluding ancillary benefits) is capped at €9.5 million.
4) The number of prospective performance shares for the performance period determined at the 2020 grant date is calculated by dividing the target amount by the
average share price (Xetra® closing price) for Deutsche Börse shares in December 2019 (€138.48).
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Financial statements
Notes
Further information
Remuneration of former members of the Executive Board for financial year 2020
9.
Former members of the Executive Board or their surviving dependants received payments of €8.3 million
in financial year 2020 (2019: €9.7 million). The actuarial present value of the pension obligations in
financial year 2020 as at the reporting date was €86.0 million (31 December 2019: €84.8 million).
The former Labour Director, Ms Stars, has resigned from her appointment as at 30 June 2020. Her
service contract ended on 30 November 2020. For the remaining term of her service contract in 2020
(1 July until 30 November 2020), she received the following remuneration:
▪ Fixed remuneration: T€270.8
▪ Performance bonus: T€485.3
▪ Performance shares: 1,555
▪ Ancillary benefits: T€12.4
With regard to Ms Stars, the company has decided to waive the post-contractual non-compete clause.
In addition, former Executive Board members are entitled to payouts from the PSP tranche 2016. The
PSP tranche 2016 will be paid out in three equal tranches or, in the case of Mr Kengeter, in one
tranche.
The following table provides a summary overview of the key elements of the PSP tranche 2016:
PSP-Tranche 2016
Former Executive Board
members
Target value
Share price
€ thous.
at grant €
Number of
performance
shares
granted
Final number
of
performance
shares
Share price at
the end of
performance
period €1)
Payout
amount
€ thous.
Total target
achievement
Carsten Kengeter
1,300.0
78.35
16,593
210.9%
34,998
138.22
5,280.1
Andreas Preuss
Jeffrey Tessler
701.4
556.7
78.35
78.35
8,952
210.9%
18,882
138.22
2,848.7
7,105
210.9%
14,986
138.22
2,260.9
1) Plus dividends paid per share of €12.65 during the performance period.
Further information on the performance criteria as well as the target achievements of the PSP tranche
2016 can be found in the section “Payout of the PSP tranche 2016”.
The former Chief Executive Officer, Mr Carsten Kengeter, who stepped down with effect from
31 December 2017, participated in the Co-Performance Investment Plan (CPIP) that was adopted by
the Supervisory Board in 2015. In December 2015, during the investment period provided for in the
CPIP, he used private funds to invest €4,500,000 in Deutsche Börse AG shares (investment shares). In
return for his acquisition of the investment shares, Mr Kengeter was granted 68,987 co-performance
shares in the company. The performance period for the co-performance shares commenced on
1 January 2015 and ended on 31 December 2019. Given that Mr Kengeter only worked for Deutsche
Börse AG for three years of the relevant five-year performance period in accordance with the CPIP, the
initial number of co-performance shares was reduced to 41,392. Co-performance shares are basically
subject to the same financial performance criteria as performance shares, which are explained in the
section “Performance shares”.
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Financial statements
Notes
Further information
Thus the performance of the co-performance shares is measured on the basis of (i) Deutsche Börse AG’s
net income growth and (ii) the ratio of the change in TSR for Deutsche Börse shares to that for the
companies included in the STOXX® Europe 600 Financials index. The equivalent of performance shares
is due for disbursement in three stages: Mr Kengeter received a prepayment as of 31 March 2019
amounting to €2.1 million and another one as of 31 March 2020 amounting to €5.5 million. Final
payout of the outstanding amount of €5.5 million takes place as of
31 March 2021. As shown in the table above, the performance period of the PSP tranche 2016 ended
on 31 December 2020. At the beginning of that performance period Mr Kengeter was allocated the
number of 16,593 performance shares. Based on the targets achieved, this results in the final number
of 16,593 performance shares for Mr Kengeter and thus a payout amount of €5.3 million. Prior to Mr
Kengeter’s resignation in 2017, no agreement had been concluded with him for the implementation of
the overall cap of an aggregate gross remuneration, as outlined in the section “Maximum remuneration”.
IV
Remuneration of the Supervisory Board in financial year 2020
Remuneration system of the Supervisory Board
1.
The partially adjusted remuneration system of the Supervisory Board of Deutsche Börse AG was
submitted to the Annual General Meeting 2020 for resolution in accordance with Section 113 (3) AktG
and was approved at the Annual General Meeting by a majority of 99.25 per cent. The amended
remuneration system of the Supervisory Board entered into force retroactively as of 1 May 2020. The
previous Supervisory Board remuneration system applied until 30 April 2020.
Remuneration for the Supervisory Board is a fixed remuneration only, plus an attendance fee for
meetings, in accordance with suggestion G.18 sentence 1 of the GCGC 2020 as amended on 16
December 2020. The Supervisory Board’s remuneration, providing for fixed remuneration only,
strengthens the Supervisory Board’s independence and provides a counterbalance to the structure of
Executive Board remuneration, which is mainly variable and aligned with Deutsche Börse Group’s
growth strategy. Supervisory Board’s remuneration therefore contributes to the implementation of the
business strategy, and thus promotes Deutsche Börse Group’s long-term development.
The members of the Supervisory Board receive fixed annual remuneration of €85,000
(until 30 April 2020: €70,000). In accordance with recommendation G.17 of the GCGC 2020 as
amended on 16 December 2019, remuneration is increased for the Chair of the Supervisory Board and
for his or her deputy, as well as for chairs and members of committees. The remuneration for the
Chairman of the Supervisory Board amounts to €220,000 (until 30 April 2020: €170,000); the
remuneration for the Deputy Chair to €125,000 (until 30 April 2020: €105,000). Members of
Supervisory Board committees receive additional fixed annual remuneration of €30,000 for each
committee position they hold. The relevant amount for members of the Audit Committee is €35,000.
The remuneration paid to committee chairs is €40,000, or €75,000 (until 30 April 2020: €60,000) in
the case of the Chair of the Audit Committee. If a Supervisory Board member belongs to several
Supervisory Board committees, only their work on a maximum of two committees (the two most highly
remunerated ones) is remunerated. Supervisory Board members who only hold office for part of the
financial year receive one-twelfth of the fixed annual remuneration and, if applicable, of the pro-rata
remuneration payable for their membership of committees, for each month or part-month in which they
are members. The remuneration for any financial year is due and payable as a one-off payment after the
Annual General Meeting that accepts the consolidated financial statements for the relevant financial year
or decides on their approval.
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Financial statements
Notes
Further information
Members of the Supervisory Board or a Supervisory Board committee receive an attendance fee of
€1,000 for each Board or committee meeting that they attend in person, either as a member or as a
guest. Where two or more meetings are held on the same day or on consecutive days, the attendance
fee is only paid once.
After preparation by the nomination committee, the Supervisory Board examines, on a regular basis,
whether its members’ remuneration is appropriate, given their tasks and the situation of the company.
For this purpose, the Supervisory Board shall conduct a horizontal market comparison, and may seek
the advice of an independent external expert. In view of the special nature of the work of the Supervisory
Board, when reviewing the remuneration of the Supervisory Board, usually no vertical comparison with
the remuneration of employees of Deutsche Börse AG or Deutsche Börse Group is conducted.
Depending upon the result of the comparative analysis and the Supervisory Board’s assessment of this
result, the Supervisory Board and the Executive Board may submit a joint proposal to the Annual
General Meeting for adjustments to Supervisory Board remuneration. Irrespective of such a proposal the
Annual General Meeting passes a resolution on the remuneration of Supervisory Board members
(including the underlying remuneration system) every four years at the latest according to Section 113
(3) AktG; the relevant resolution may also confirm the current remuneration.
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Financial statements
Notes
Further information
2.
Remuneration of the Supervisory Board members for financial year 2020
Supervisory Board remuneration1)
Martin Jetter (Chairman)
Joachim Faber (former Chairman3)
Nadine Absenger
Ann-Kristin Achleitner
Markus Beck
Richard Berliand
Karl-Heinz Flöther
Andreas Gottschling4)
Susann Just-Marx
Achim Karle
Cornelis Johannes Nicolaas Kruijssen
Barbara Lambert
Joachim Nagel5)
Michael Rüdiger6)
Carsten Schäfer
Charles G. T. Stonehill
Clara-Christina Streit
Jutta Stuhlfauth (Deputy Chairperson)
Gerd Tausendfreund
Amy Yip
Total
2020
2019
full year
1 Jan–19 May
full year
full year
full year
full year
–
1 Jan–8 May
20202)
T€
259.0
109.2
120.0
–
full year
full year
156.0
–
1 Jan–8 May
full year
full year
1 July–31 Dec
full year
full year
full year
full year
1 Jan–30 June
19 May–31 Dec
–
full year
full year
full year
full year
full year
–
full year
full year
full year
8 May–31 Dec
full year
8 May–31 Dec
full year
full year
full year
full year
full year
full year
–
136.3
82.0
144.0
147.0
147.0
185.0
79.0
105.0
144.0
132.0
113.0
195.3
116.0
140.0
20192)
T€
143.7
257.0
114.0
43.7
147.0
62.3
146.0
–
139.0
138.0
139.0
171.0
156.0
–
138.0
69.7
68.7
181.0
107.0
129.5
2,509.8
2,350.6
1) The recipient of the remuneration is determined individually by the members of the Supervisory Board.
2) Remuneration including individual attendance fee.
3) Left the Supervisory Board on 19 May 2020.
4) Appointed to the Supervisory Board by court order on 1 July 2020.
5) Left the Supervisory Board on 30 June 2020.
6) Elected to the Supervisory Board on 19 May 2020.
No agreements for advisory and agency services had been entered into in the reporting period with
members of the Supervisory Board, or with companies that employ members of the Supervisory Board of
Deutsche Börse AG or in which Supervisory Board members hold an interest.
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Notes
Further information
V
Comparative presentation of the remuneration development of the Executive Board
members, the Supervisory Board members as well as the workforce and the earnings
development of the company
In order to comply with the requirements of Section 162 (1) sentence 2 no. 2 AktG for financial year
2020, the following table shows the development of the remuneration of the Executive Board members,
the Supervisory Board members and the workforce as well as the earnings development of the company.
Comperative presentation
Executive Board members
Theodor Weimer
Christoph Böhm
Thomas Book
Heike Eckert1)
Stephan Leithner
Gregor Pottmeyer
Average
Supervisory Board members
Martin Jetter2)
Nadine Absenger
Markus Beck
Karl-Heinz Flöther
Andreas Gottschling1)
Susann Just-Marx
Achim Karle
Cornelis Johannes Nicolaas Kruijssen
Barbara Lambert
Michael Rüdiger1)
Carsten Schäfer
Charles G. T. Stonehill3)
Clara-Christina Streit3)
Jutta Stuhlfauth
Gerd Tausendfreund
Amy Yip
Average
Employees
Entire workforce
Development of earnings
Adjusted net income Mio. €
2020
€ thous.
2019
€ thous.
Change
%
6,101.0
2,597.7
2,555.9
1,195.4
2,768.1
2,786.0
3,361.7
259.0
120.0
156.0
136.3
82.0
144.0
147.0
147.0
185.0
105.0
144.0
132.0
113.0
195.3
116.0
140.0
157.5
5,857.6
2,994.1
2,585.7
–
2,842.3
2,778.9
3,411.7
143.7
114.0
147.0
146.0
–
139.0
138.0
139.0
171.0
–
138.0
69.7
68.7
181.0
107.0
129.5
141.1
4.2
– 13.2
– 1.2
–
– 2.6
0.3
– 1.5
80.2
5.3
6.1
– 6.6
–
3.6
6.5
5.8
8.2
–
4.3
89.4
64.5
7.9
8.4
8.1
11.6
112.8
112.3
0.4
1,204.3
1,105.6
8.9
1) Joined the board in the course of 2020. Average values only take into account full-year board memberships.
2) Ordinary member of the Supervisory Board in 2019, Chairman of the Supervisory Board since 19 May 2020.
3) Joined the board in the course of 2019. Average values only take into account full-year board memberships.
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Further information
The presentation of the average employee remuneration and its changes includes all employees of the
joint operation in Frankfurt. Aside from Deutsche Börse AG, the following legal entities are part of the
joint operation in Frankfurt: Eurex Frankfurt AG, Eurex Clearing AG, Eurex Repo GmbH, Eurex Securities
Transactions Services GmbH, Clearstream Holding AG, Clearstream Banking AG, Regulatory Services
GmbH. In line with the remuneration of the Executive Board and the Supervisory Board, the presentation
of average remuneration for the entire workforce relates to their total remuneration (including any bonus
payments, pension contributions, and other ancillary benefits).
VI
Planned resolution on the remuneration system of the Executive Board at the Annual
General Meeting in financial year 2021
Against the background of the review of the strategic orientation of the Executive Board's remuneration
system and its alignment with Deutsche Börse Group’s current strategy “Compass 2023”, the
Supervisory Board, with the advice of the Nomination Committee, is undertaking a comprehensive
revision and further development of the current remuneration system. The revised remuneration system
shall be more closely aligned with Deutsche Börse AG’s current strategy. In doing so, the Supervisory
Board also takes into account the feedback from investors provided in the context of the Say on Pay
2020 and corresponding recommendations of some proxy advisors.
The Supervisory Board intends to submit the revised and further developed remuneration system to the
Annual General Meeting in May 2021 for approval. Detailed information on the main adjustments to the
remuneration system will be presented and explained upfront the Annual General Meeting 2021.
Corporate governance statement
Deutsche Börse Group attaches great importance to the principles of good corporate governance and
control. In this statement, we report on corporate governance at Deutsche Börse AG in accordance with
principle 22 of the Deutscher Corporate Governance Kodex (the “Code”, German Corporate Governance
Code). The statement contains the corporate governance statement pursuant to sections 289f and 315d
Handelsgesetzbuch (HGB, German Commercial Code).
Declaration of Conformity pursuant to section 161 Aktiengesetz (AktG, German Stock Corporation
Act)
On 3 December 2020, the Executive Board and Supervisory Board of Deutsche Börse AG issued the
following Declaration of Conformity:
“Declaration by the Executive Board and the Supervisory Board of Deutsche Börse AG regarding the
German Corporate Governance Code in accordance with section 161 of the German Stock Corporation
Act
For the period since the last regular declaration of conformity dated 10 December 2019 until 19 March
2020, the following declaration of conformity refers to the version of the German Corporate Governance
Code of 7 February 2017 (GCGC 2017). Since 20 March 2020, it refers to the new version of the
GCGC as amended on 16 December 2019 and published in the Federal Gazette on 20 March 2020
(GCGC 2019).
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The Executive Board and the Supervisory Board of Deutsche Börse AG declare that the
recommendations of the GCGC in its respective version have been and are being complied with almost
in full since the last declaration of conformity dated 10 December 2019. Also, it is intended to fully
comply with the recommendations of the GCGC in the future. For details, please see below:
1. Agreement of severance payment caps when concluding Executive Board contracts (no. 4.2.3 (4)
GCGC 2017, recommendation G.13 GCGC 2019)
Severance payment caps agreed upon in all contracts with the members of the Executive Board complied
and will continue to comply with recommendation no. 4.2.3 (4) GCGC 2017/recommendation G. 13
GCGC 2019. In the past, however, the Supervisory Board reserved the right to deviate from no. 4.2.3
(4) GCGC 2017, as it was of the opinion that a deviation may become necessary in extraordinary cases.
In connection with the introduction of an adjusted remuneration system for the Executive Board from 1
January 2020, the Supervisory Board generally abandoned this reservation. The recommendation – also
in its new version – has therefore been complied with in full since then.
2. Caps on total amount of remuneration (no. 4.2.3 (2) (sentence 6) GCGC 2017, recommendation G.
1, first indent GCGC 2019) and disclosure in the remuneration report (no. 4.2.5 (3) GCGC 2017)
No. 4.2.3 (2) (sentence 6) GCGC 2017 recommended that the amount of management compensation
shall be capped, both as regards variable components and in the aggregate. This recommendation has
not been fully complied with in the past. The annual remuneration, comprising fixed and variable
remuneration components and pension benefits, was capped at EUR 9.5 million (total cap) for each
member of the Executive Board. However, ancillary benefits were not included in the overall cap. In
addition, the share-based long-term variable remuneration components were capped regarding the
number of shares granted, but no dedicated cap on the maximum achievable bonus amount was
provided for. With regard to the share-based variable remuneration components, the maximum
achievable remuneration therefore could not be reported either – as recommended in no. 4.2.5 (3) (first
sub-item) GCGC 2017.
With the introduction of the adjusted remuneration system for the Executive Board on 1 January 2020,
the annual remuneration of a fixed salary, variable remuneration components, pension expenses and
ancillary benefits for each Executive Board member is now capped at a maximum amount of EUR 9.5
million (total cap). Regarding the Executive Board service contracts that have been newly concluded or
extended since 1 January 2020, no. 4.2.3 (2) sentence 6 GCGC 2017 and recommendation G.1, first
indent GCGC 2019 – according to which, inter alia, in the remuneration system it should be determined
what amount the total remuneration may not exceed (maximum remuneration) – is therefore complied
with. With the intended corresponding adjustment of the remaining Executive Board service contracts
with regard to the provision on maximum remuneration, recommendation G.1 GCGC 2019 will be
complied with in the future in full.
3. Composition of the Nomination Committee (no. 5.3.3 GCGC 2017, recommendation D. 5 GCGC
2019)
According to no. 5.3.3 GCGC 2017, recommendation D. 5 GCGC 2019, the Supervisory Board shall
form a Nomination Committee composed exclusively of shareholder representatives. In accordance with
Section 4 b of the German Stock Exchange Act, the Nomination Committee, however, also assists the
Supervisory Board of Deutsche Börse AG in selecting candidates for the Executive Board. As in particular
this task shall not exclusively be performed by the shareholder representatives on the Supervisory Board,
the Nomination Committee also includes employee representatives.
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Since the new version of the GCGC, this recommendation is no longer applicable for Deutsche Börse AG
in the view of the priority provision of the German Stock Exchange Act (recommendation F.4 GCGC
2019). Regardless of this, it is ensured that the nominees proposed to the Annual General Meeting for
the election as members of the Supervisory Board are determined solely by the shareholder
representatives on the Committee.”
The annual Declaration of Conformity pursuant to section 161 AktG, as well as the Declarations of
Conformity for the past five years, are available on our website www.deutsche-
boerse.com/declcompliance/.
Disclosures on overriding statutory provisions
The Executive Board and Supervisory Board of Deutsche Börse AG declare in accordance with
recommendation F.4 of the Code that recommendation D.5 of the Code was not applicable to the
company in 2020 because of the overriding statutory requirement of section 4 b of the Stock Exchange
Act. Recommendation D.5 of the Code states that the Supervisory Board shall form a Nomination
Committee composed exclusively of shareholder representatives. In accordance with Section 4 b of the
German Stock Exchange Act, however, the Nomination Committee also assists the Supervisory Board of
Deutsche Börse AG in selecting candidates for the Executive Board. As this task shall not be performed
exclusively by shareholder representatives of the Supervisory Board, and in line with the practice to date,
the Nomination Committee also includes employee representatives – as described above.
Disclosures on suggestions of the Code
The Code comprises recommendations (denoted in the text by the use of the word “shall”), which are
disclosed in the Declaration of Conformity in accordance with section 161 AktG, and suggestions
(denoted in the text by the use of the word “should”). Deutsche Börse AG fully complies with them.
Publicly available information in accordance with section 289f (2) no. 1a HGB
The current version of the remuneration report, the underlying remuneration system in accordance with
section 87a (1) and (2) sentence 1 AktG as well as the latest resolution in accordance with section 113
(3) AktG are available on the website www.deutsche-boerse.com > Investor relations > Annual General
Meeting > Remuneration Executive Board.
Information on corporate governance practices
Conduct policies
Deutsche Börse Group’s global orientation means that binding policies and standards of conduct must
apply at all of the Group’s locations around the world. Specifically, the main objectives of these
principles for collaboration are to ensure responsibility, respect and mutual esteem. The Group also
adheres to these principles when implementing its business model. Communications with clients,
investors, employees and the general public are based on timely information and transparency. In
addition to focusing on generating profit, Deutsche Börse Group’s business is managed sustainably in
accordance with recognised standards of social responsibility.
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Code of business conduct for employees
Acting responsibly means having values that are shared by all employees throughout the Group. In
2017, Deutsche Börse AG’s Executive Board adopted an extended code of business conduct. This
document, which is applicable throughout the Group, defines the foundations of key ethical and legal
standards, including – but not limited to – the following topics:
◼ Confidentiality and the handling of sensitive information
◼ Conflicts of interest
◼ Personal account dealing, as well as the prevention of insider dealing and market manipulation
◼ Company resources and assets
◼ Combat of bribery and corruption
◼ Risk management
◼ Whistle-blowers
◼ Environmental awareness
◼ Equal opportunities and protection against undesirable behaviour
The code of business conduct applies to members of the Executive Board, all other executives and all
employees of Deutsche Börse Group. In addition to specifying concrete rules, the code of business
conduct provides general guidance as to how employees can contribute to implementing the defined
values in their everyday working life. The goal of the code of business conduct is to provide guidance on
working together in the company on a day-to-day basis, to help resolve any conflicts and to resolve
ethical and legal challenges. All newly hired employees receive the code of business conduct as part of
their employment contract documentation. The code of business conduct is an integral part of the
relationship between employer and employees at Deutsche Börse Group. Breaches may lead to
disciplinary action. The document is available on www.deutsche-boerse.com > Sustainability >Our ESG
profile > Employees > Guiding principles.
Code of conduct for suppliers and service providers
Deutsche Börse Group not only requires its management and staff to adhere to high standards – it
demands the same from its suppliers and service providers. The code of conduct for suppliers and
service providers requires them to respect human rights and employee rights and comply with minimum
standards. Implementing a resolution of the Executive Board, the code of conduct for suppliers was
amended in 2016 to include the requirements set out in the UK Modern Slavery Act, applicable to all
corporations conducting business in the United Kingdom. Most suppliers have signed up to these
conditions; all other key suppliers have made voluntary commitments, which correspond to, or in fact,
exceed Deutsche Börse Group’s standards. Service providers and suppliers must sign this code or enter
into an equivalent voluntary commitment before they can do business with Deutsche Börse Group. The
code of conduct for suppliers is reviewed regularly in the light of current developments and amended if
necessary. It is available on Deutsche Börse Group’s website www.deutsche-boerse.com >
Sustainability > Our ESG profile > Procurement management.
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Values
Deutsche Börse Group’s business activities are based on the legal frameworks and ethical standards of
the different countries in which it operates. A key way in which the Group underscores the values it
considers important is by joining initiatives and organisations that advocate generally accepted ethical
standards. Relevant memberships are as follows:
United Nations Global Compact www.unglobalcompact.org: this voluntary business initiative
established by the United Nations aims to achieve a more sustainable and more equitable global
economy. At the heart of the compact are ten principles covering the areas of human rights, labour,
environment protection and anti-corruption. Deutsche Börse Group has submitted annual
communications on progress (COPs) on its implementation of the UN Global Compact since 2009.
Diversity Charter www.diversity-charter.com: as a signatory to the Diversity Charter, the company has
committed to acknowledging, respecting and promoting the diversity of its workforce, customers and
business associates – irrespective of their age, gender, disability, race, religion, nationality, ethnic
background, sexual orientation or identity.
International Labour Organization www.ilo.org: this UN agency is the international organisation
responsible for drawing up and overseeing international labour standards; it brings together
representatives of governments, employees and employers to promote the joint development of policies
and programmes. Deutsche Börse Group has signed up to the ILO’s labour standards and hence has
agreed to abide by them.
Frankfurt Declaration www.deutsche-boerse.com/frankfurt-declaration: the Frankfurt Declaration
demonstrates the signatories’ intention to define the framework conditions for sustainable finance and to
put concrete initiatives in place in the Frankfurt financial centre. These are directed towards the
identification of innovative business areas and the responsible handling of risks, amongst other things.
The potential of sustainable finance infrastructures must therefore be fully encouraged in order to
support positive economic and social development founded on the unconditional protection of the
natural basis of life.
For further information on sustainability at Deutsche Börse Group, please see the chapter “Combined
non-financial statement” or go to www.deutsche-boerse.com > Sustainability.
Sector-specific policies
Deutsche Börse Group’s pivotal role in the financial sector requires that it handles information – and
especially sensitive data and facts – responsibly. A number of rules are in force throughout the Group to
ensure that employees comply with this. These cover both legal requirements and special policies
applicable to the relevant industry segments, such as the whistle-blowing system and risk and control
management policies.
Whistle-blowing system
Deutsche Börse Group’s whistle-blowing system provides a channel to report non-compliant behaviour. It
is aimed primarily at employees and external service providers. The Group had previously engaged the
auditing and consulting company Deloitte to act as an external ombudsman and receive any such
information submitted by phone or email. This engagement was transferred to Business Keeper AG in
December. Whistle-blowers’ identities are still not revealed to Deutsche Börse Group.
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Risk and control management policies
Functioning control systems are an important part of stable business processes. Deutsche Börse Group’s
enterprise-wide control systems are embedded in an overarching framework. This comprises, amongst
other things, the legal requirements, the recommendations of the German Corporate Governance Code,
international regulations and recommendations and other company-specific policies. The executives
responsible for the different elements of the control system are in close contact with each other and with
the Executive Board, and report regularly to the Supervisory Board or its committees. Equally, the Group
has an enterprise-wide risk management system that covers and provides mandatory rules for functions,
processes and responsibilities. Details of the internal control system and risk management at Deutsche
Börse Group can be found in the “Internal management” and “Risk report” sections.
Working practices of the Executive Board and the Supervisory Board
An important fundamental principle of the German Stock Corporation Act is the dual board system –
which assigns separate, independent responsibilities to the Executive Board and the Supervisory Board.
These responsibilities and their implementation at Deutsche Börse AG are set out in detail in the
following paragraphs.
Both boards perform their duties in the interests of the company and with the aim of achieving a
sustainable, long-term increase in value. Their actions are based on the principle of responsible
corporate governance. Therefore, Deutsche Börse AG’s Executive Board and Supervisory Board work
closely together in a spirit of mutual trust, with the Executive Board providing the Supervisory Board with
comprehensive information on the company’s and the Group’s position and the course of business in a
regular and timely manner. In addition, the Executive Board regularly informs the Supervisory Board
concerning issues relating to corporate planning, the risk situation and risk management, compliance
and the company’s control systems. The strategic orientation of the company is examined in detail and
agreed upon with the Supervisory Board. Implementation of the relevant measures is discussed at
regular intervals. The Chief Executive Officer reports to the Supervisory Board without undue delay, orally
or in writing, on matters that are of special importance to the company.
In addition, the CEO keeps the Chair of the Supervisory Board continuously and regularly informed of the
current developments affecting the company’s business, significant transactions, upcoming decisions
and the long-term outlook and discusses these issues with them. The Supervisory Board may also
request reports from the Executive Board at any time, especially on matters and business transactions at
Deutsche Börse AG and subsidiaries that have a significant impact on Deutsche Börse AG’s position. The
bylaws for the Executive Board and Supervisory Board govern the corresponding information rights and
obligations of the Executive Board and Supervisory Board in detail.
Deutsche Börse AG’s Executive Board
The Executive Board manages Deutsche Börse AG and Deutsche Börse Group; it had six members
during the reporting period. The main duties of the Executive Board include defining the Group’s
corporate goals and strategic orientation, managing and monitoring the operating units, as well as
establishing and monitoring an efficient risk management system. The Executive Board is responsible for
preparing the annual and consolidated financial statements of Deutsche Börse AG, as well as for
producing financial information during the course of the year. In addition, it must ensure the company’s
compliance with legal requirements and official regulations.
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The members of the Executive Board are jointly responsible for all aspects of management. Irrespective
of this collective responsibility, the individual members manage the company’s business areas assigned
to them in the Executive Board’s schedule of responsibilities independently and are personally
responsible for them. In addition to the business areas, the functional areas of responsibility are that of
the Chief Executive Officer (CEO), the Chief Financial Officer (CFO), the Chief Information Officer/ Chief
Operating Officer (CIO/COO) and HR & Compliance. The business areas cover the operating business
units, such as the company’s cash market activities, the derivatives business, securities settlement and
custody and the market data and financial information business. Details can be found in the “Overview
of Deutsche Börse Group – Organisational structure” section.
Further details of the Executive Board’s work are set out in the bylaws that the Supervisory Board has
adopted for the Executive Board. Amongst other things, these list issues that are reserved for the entire
Executive Board, special measures requiring the approval of the Supervisory Board, other procedural
details and the arrangements for passing resolutions. The Executive Board holds regular meetings; these
are convened by the CEO, who coordinates the Executive Board’s work. Any Executive Board member
can require a meeting to be convened. In accordance with its bylaws, the entire Executive Board
normally takes decisions on the basis of resolutions passed by a simple majority of the members voting
on them in each case. If a vote is tied, the CEO has the casting vote.
More information on the Executive Board, its composition, members’ individual appointments and
biographies can be found at www.deutsche-boerse.com/execboard.
Deutsche Börse AG’s Supervisory Board
The Supervisory Board supervises and advises the Executive Board in its management of the company.
It supports the Executive Board in significant business decisions and provides assistance on strategically
important issues. The Supervisory Board has specified measures requiring its approval in the bylaws for
the Executive Board. In addition, the Supervisory Board is responsible for appointing the members of the
Executive Board, deciding on their total remuneration, examining Deutsche Börse AG’s annual and
consolidated financial statements and the combined management report including the combined non-
financial statement. Details of the Supervisory Board’s work during the 2020 financial year can be found
in the report of the Supervisory Board.
The Supervisory Board consists of 16 members, made up of an equal number of shareholder
representatives and employee representatives in line with the German Mitbestimmungsgesetz (MitbestG,
German Co-determination Act). The term of office of the shareholder representatives on the current
Supervisory Board ends at the Annual General Meeting in 2021. As a rule, the same applies to the
employee representatives. However, the COVID-19 pandemic meant that the elections for employee
representatives, which had already begun, had to be interrupted. The plan is therefore to have the
employee representatives appointed by court order until the election process can be completed.
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The Supervisory Board holds at least six regular meetings every year. In addition, extraordinary meetings
are held as required. The committees also hold regular meetings. Unless mandatory statutory provisions
or the Articles of Associations call for a different procedure, the Supervisory Board passes its resolutions
by a simple majority. If a vote is tied, the Chairman has the casting vote. In addition, the Supervisory
Board regularly reviews the structure, size, composition and performance of the work of the Executive
and Supervisory Boards as well as the effectiveness of its own work, and discusses potential areas for
improvement and adopts suitable measures, where necessary.
The Supervisory Board Chair is in regular contact with the representatives of shareholders and
employees on the Supervisory Board, in addition to the scheduled meetings.
Supervisory Board committees
The Supervisory Board’s goal in establishing committees is to improve the efficiency of its work by
examining complex matters in smaller groups that prepare them for the plenary meeting of the
Supervisory Board. Additionally, the Supervisory Board has delegated individual decision-making powers
to the committees, to the extent that this is legally permissible. At the start of the reporting period the
Supervisory Board had eight committees, whereby the Chairman Selection Committee was established
solely to prepare the election of the new Supervisory Board Chair after the Annual General Meeting
2020. The committee was dissolved automatically after the election of Martin Jetter as the new
Supervisory Board Chair on 19 May 2020, bringing the number of committees back to seven. For details
of the committees, please refer to the tables “Supervisory Board committees during 2020: composition
and responsibilities”. Their individual responsibilities are governed by the Supervisory Board’s bylaws.
The committees’ rules of procedure correspond to those for the plenary meeting of the Supervisory
Board. Details of the current duties and members of the individual committees can be found online, at
www.deutsche-boerse.com/supervboard > Committees.
The chairs of the individual committees report to the plenary meeting about the subjects addressed and
resolutions passed in the committee meetings. Information on the Supervisory Board’s concrete work
and meetings during the reporting period can be found in the report of the Supervisory Board.
More information on the Supervisory Board and its committees, the individual members and their
appointments and biographies, can be found at: www.deutsche-boerse.com/supervboard.
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Supervisory Board committees during 2020: composition and responsibilities
Audit Committee
Members
▪ Barbara Lambert (Chair)
▪ Nadine Absenger1)
▪ Markus Beck1)
▪ Karl-Heinz Flöther
(until 19 May 2020)
▪ Andreas Gottschling
(since 1 Jul 2020)
Composition
▪ At least four members who are elected by the Supervisory Board
▪ Prerequisites for the chair of the committee: the person concerned must be independent, and must
have specialist knowledge and experience of applying accounting principles as well as internal
control and risk management processes (financial expert)
▪ Persons who cannot chair the committee: the Chair of the Supervisory Board; former members of
the company’s Executive Board whose appointment ended less than two years ago
▪ Joachim Nagel (until 30 Jun 2020)
Responsibilities
▪ Michael Rüdiger (since 19 May 2020)
▪ Jutta Stuhlfauth1)
▪ Deals with issues relating to the preparation of the annual budget and financial topics, particularly
capital management
▪ Deals with issues relating to the adequacy and effectiveness of the company’s control systems – in
particular, to risk management, compliance and internal audit
▪ Deals with audit reports as well as accounting issues, including oversight of the accounting and
reporting process
▪ Half-yearly financial reports, plus any quarterly financial reports, discusses the results of the
reviews with the auditors
▪ Examines the annual financial statements, the consolidated financial statements and the combined
management report including the combined non-financial statement, discusses the audit report
with the external auditors and prepares the Supervisory Board’s resolutions adopting the annual
financial statements and approving the consolidated financial statements, as well as the resolution
on the Executive Board’s proposal on the appropriation of the distributable profit
▪ Prepares the Supervisory Board’s recommendation to the Annual General Meeting on the election
of the external auditors of the annual financial statements, the consolidated financial statements
and the half-yearly financial report to the extent that the latter is audited or reviewed by external
auditors and makes corresponding recommendations to the Supervisory Board
▪ Reviews the non-financial reporting (sections 289b, 315b HGB)
▪ Monitors the audit, particularly the independence and quality of the auditors and the non-audit
services provided by the auditors
▪ Issues the engagement letter to the external auditor of the annual financial statements and the
consolidated financial statements – including, in particular, the review or audit of half-yearly
financial reports, and determines focal areas of the audit and the audit fee
▪ Prepares the Supervisory Board’s resolution approving the statement on the German Corporate
Governance Code pursuant to section 161 AktG and the corporate governance statement in
accordance with section 289f HGB
▪ Control procedures on related-party transactions pursuant to section 111a (2) sentence 2 AktG
1) Employee representative
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Nomination Committee
Members
▪ Martin Jetter
(Chair since 19 May 2020)
▪ Joachim Faber
(Member and Chair until 19 May
2020)
▪ Markus Beck1)
▪ Michael Rüdiger (since 19 May 2020)
▪ Jutta Stuhlfauth1)
▪ Gerd Tausendfreund1)
▪ Amy Yip
Composition
▪ Chaired by the Chair of the Supervisory Board
▪ At least five other members who are elected by the Supervisory Board
▪
Responsibilities
▪ Addresses succession planning for the Executive Board and identifies candidates to fill vacancies
in the Executive Board
▪ Develops a diversity concept for the Supervisory Board
▪ Deals with the annual assessment of the structure, size, composition and performance of the
Executive Board and Supervisory Board, as well as possible improvements
▪ Deals with the annual assessment of the qualification requirements of individual members of the
Executive Board and Supervisory Board, and the Executive Board and Supervisory Board as a
whole
▪ Reviews the policy for selection and appointment of members of the Executive Board and makes
recommendations to the Supervisory Board in this regard
▪ Proposes suitable candidates to the Supervisory Board for inclusion in the Supervisory Board’s
election proposal to the Annual General Meeting (by shareholder representatives)
▪ Enters into, amends or terminates service agreements within the framework defined by the
Supervisory Board
▪ Deals with aggregate remuneration and retirement benefits of individual Executive Board members
and determines payments to surviving dependants and any other similar payments; regularly
reviews the reasonableness of Executive Board remuneration and develops proposals for any
adjustments where required
▪ Consents to the assumption of mandates by members of Deutsche Börse AG’s Executive Board as
member of an executive board, supervisory board, advisory board and similar mandates, as well
as secondary activities and honorary offices, or grants relief from the consent requirement
▪ Consents to the granting or revocation of general powers of attorney
▪ Approves cases in which the Executive Board grants employees retirement benefits or other
personal pension benefits, or proposes works agreements establishing pension plans
▪ Decides on delaying the publication of insider information and on drafting ad hoc announcements
on information for which the Supervisory Board is responsible
▪ Other tasks and duties set forth in section 4b (5) BörsG
1) Employee representative
Risk Committee
Members
Composition
▪ Andreas Gottschling
(Member and Chair since 1 Jul 2020)
▪ At least four members who are elected by the Supervisory Board
▪ Joachim Nagel
(Member and Chair until 30 Jun
2020)
▪ Susann Just-Marx1)
▪ Cornelis Kruijssen1)
▪ Barbara Lambert
▪
1) Employee representative
Responsibilities
▪ Reviews the risk management framework, including the overall risk strategy, risk appetite and the
risk management roadmap
▪ Takes note of and reviews the periodic risk management and compliance reports
▪ Oversees monitoring of the Group’s operational, financial and business risks
▪ Takes note of and discusses the annual reports on significant risks and the risk management
systems at regulated Group entities, to the extent legally permissible
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Strategy Committee
Members
▪ Martin Jetter
(member and Chair since 19 May
2020)
▪ Joachim Faber
(Member and Chair until 19 May
2020)
▪ Susann Just-Marx1)
▪ Achim Karle1)
▪ Carsten Schäfer1)
▪ Charles Stonehill
▪ Clara-Christina Streit
1) Employee representative
Technology Committee
Members
▪ Karl-Heinz Flöther
(Chair since 19 May 2020)
▪ Martin Jetter
(Member and Chair until 19 May
2020)
▪ Achim Karle1)
▪ Cornelis Kruijssen1)
▪ Carsten Schäfer1)
▪ Charles Stonehill
(since 19 May 2020)
▪ Amy Yip
1) Employee representative
Chairman’s Committee
Members
▪ Martin Jetter
(Chair since 19 May 2020)
▪ Joachim Faber
(Member and Chair until 19 May
2020)
▪ Nadine Absenger1)
▪ Jutta Stuhlfauth1)
▪ Clara-Christina Streit
(since 19 May 2020)
1) Employee representative
Composition
▪ Chaired by the Chair of the Supervisory Board
▪ At least five other members who are elected by the Supervisory Board
Responsibilities
▪ Advises the Executive Board on matters of strategic importance to the company and its affiliates
▪ Addresses issues concerning the Company’s orientation in terms of fundamental corporate policy
and entrepreneurship, as well as projects important to Deutsche Börse Group
Composition
▪ At least four members who are elected by the Supervisory Board
Responsibilities
▪ Supports the Supervisory Board in meeting its supervisory duties with respect to the information
technology used to execute the Group’s business strategy and with respect to information security
▪ Advises on IT strategy and architecture
▪ Oversees monitoring of technological innovations, the provision of IT services, the technical
performance and stability of IT systems, operational IT risks, and information security services and
-risks
Composition
▪ Chaired by the Chair of the Supervisory Board
▪ Deputy Chair of the Supervisory Board as well as one shareholder representative and one
employee representative who are elected by the Supervisory Board
Responsibilities
▪ Time-sensitive affairs
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Management report | Corporate governance statement
Financial statements
Notes
Further information
Mediation Committee
Members
▪ Martin Jetter
(Chair since 19 May 2020)
▪ Joachim Faber
(Member and Chair until 19 May
2020)
▪ Karl-Heinz Flöther
▪ Susann Just-Marx1)
▪ Jutta Stuhlfauth1)
1) Employee representative
Composition
▪ Chaired by the Chair of the Supervisory Board
▪ Deputy Chair of the Supervisory Board as well as one shareholder representative and one
employee representative
Responsibilities
▪ Tasks and duties pursuant to section 27 (3) MitbestG
Chairman Selection Committee (until 19 May 2020)
Members
Composition
▪ Barbara Lambert (Chair)
▪ Markus Beck1)
▪ Joachim Faber
▪ Jutta Stuhlfauth1)
▪ Gerd Tausendfreund1)
▪ Amy Yip
1) Employee representative
▪ As determined by the Supervisory Board
Responsibilities
▪ Prepares the new election of the Supervisory Board Chair, in particular recommends candidates to
be elected by the Supervisory Board
Targets for composition and qualification requirements of the Supervisory Board
In accordance with recommendation C.1 of the Code, the Supervisory Board has adopted a catalogue of
specific targets concerning its composition that, above all, should serve as a basis for the future
nomination of its members. This catalogue comprises qualification requirements as well as diversity
targets. Furthermore, members shall have sufficient time, as well as the personal integrity and suitability
of character, to exercise their office. In addition, more than half the shareholder representatives on the
Supervisory Board shall be independent.
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Management report | Corporate governance statement
Financial statements
Notes
Further information
Qualification requirements
Given their knowledge, skills and professional experience, members of the Supervisory Board shall have
the ability to perform the duties of a supervisory board member in a company with international
business activities. The Supervisory Board has determined individual (basic) as well as general
qualification requirements. Basic requirements are derived from the business model, the concrete
targets, as well as from specific regulations applicable to Deutsche Börse Group.
Individual (basic) qualification requirements
Ideally, each Supervisory Board member holds the following basic qualifications:
◼ Understanding of commercial issues
◼ Analytical and strategic skills
◼ Understanding of the corporate governance system
◼ Knowledge of the financial services sector
◼ Understanding of Deutsche Börse AG’s activities
◼ Understanding of Deutsche Börse Group’s structure
◼ Understanding of the member’s own position and responsibilities
General qualification requirements
The general qualifications refer to the Supervisory Board in its entirety. At least two of its members
should have sound knowledge, especially concerning the following topics:
◼ Business models of exchanges and the capital markets
◼ Accounting, finance, audit
◼ Risk management and compliance
◼ Information technology and security, digitalisation
◼ Clearing, settlement and custody business
◼ Regulatory requirements
The current composition of the Supervisory Board fulfils these criteria concerning the qualification of its
members.
Supervisory Board members’ general qualification requirements
Business
models of
exchanges and
the capital
markets
Accounting,
finance, audit
Risk
management
and
compliance
Information
technology and
security,
digitalisation
Clearing,
settlement and
custody
business
Regulatory
requirements
Martin Jetter (Chair)
Karl-Heinz Flöther
Andreas Gottschling
Barbara Lambert
Michael Rüdiger
Charles Stonehill
Clara-Christina Streit
Amy Yip
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
164
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Management report | Corporate governance statement
Financial statements
Notes
Further information
Independence of Supervisory Board members
In accordance with recommendation C.6 of the Code, the Supervisory Board shall be comprised of what
it considers to be an appropriate number of independent members. Therefore, the Supervisory Board
decided that at least half the shareholder representatives on the Supervisory Board shall be independent.
Supervisory Board members are considered to be independent within the meaning of recommendation
C.6 of the Code if they are independent of the company and its Executive Board and independent of any
controlling shareholder. In particular, Supervisory Board members are no longer to be considered
independent if they have a personal or business relationship with the company or its Executive Board
that may cause a substantial (and not merely temporary) conflict of interest. According to
recommendation C.7 of the Code, more than half the shareholder representatives shall be independent
of the company and the Executive Board.
The Supervisory Board regards all of its shareholder representatives as being independent.
Diversity concept for the Executive Board and the Supervisory Board
The diversity concept for the Executive Board and the Supervisory Board, as adopted by the Supervisory
Board in accordance with section 289f (2) no. 6 HGB, has the objective of ensuring a wide range of
perspectives and experience through the composition of both bodies. The concept is implemented within
the scope of selecting and appointing new Executive Board members or regarding proposals for election
of new Supervisory Board members.
Flexible age limit and term of office
The Supervisory Board considers the flexible age limit stipulated in the bylaws (generally 70 years) when
nominating candidates for election by the Annual General Meeting. Furthermore, the Supervisory Board’s
bylaws provide for a general limitation to members’ maximum term of office to twelve years, which the
Supervisory Board shall also consider in its nominations of candidates to the Annual General Meeting.
The flexible age limit for members of the Executive Board provides for the term of office to expire at the
end of the month during which a member reaches the age of 60 years. From the month during which an
Executive Board member has reached the age of 60, re-appointment is permitted for a period of one year
in each case, provided that the last term of office shall expire at the end of the month during which the
Executive Board member reaches the age of 65. When appointing members of the Executive Board, the
Supervisory Board pursues the objective of achieving an optimal composition of the Executive Board
from the company’s perspective. In this context, experience and industry knowledge, as well as
professional and personal qualifications, play a major role. Depending on the Executive Board position to
be filled, it is not just the scope and depth of skills that is decisive, but also whether the specific skills
are up to date. The flexible age limit has been deliberately worded to preserve the Supervisory Board's
flexibility in taking decisions on appointments.
At present, no Executive Board member has passed the age limit of 65 years. Theodor Weimer’s term of
office as Chairman of Deutsche Börse AG’s Executive Board runs until 31 December 2024. Theodor
Weimer will reach the age of 65 in 2024. In view of his long-standing experience and knowledge of the
sector and his professional and personal qualifications the Supervisory Board decided, whilst
maintaining the general rule on a flexible age limit, against only renewing Theodor Weimer’s term of
office on an annual basis once he reached the age of 60.
165
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Management report | Corporate governance statement
Financial statements
Notes
Further information
Share of women holding management positions
With regard to the Supervisory Board, the legally prescribed gender quota of 30 per cent in accordance
with section 96 (2) of the AktG applies. In order to prevent the possible discrimination of either
shareholder representatives or employee representatives, and in order to increase the planning security
in the relevant election procedures, the shareholder representatives on the Supervisory Board have
opposed the overall compliance of the quota in accordance with section 96 (2) (sentence 2) AktG. Thus,
the minimum proportion of 30 per cent is to be complied with for each gender with regard to the
shareholder representatives and the employee representatives. This means that at least two women and
two men from each the shareholder representatives and from the employee representatives must be on
the Supervisory Board. Currently, there are three women each from the shareholder representatives and
from the employee representatives. The legally prescribed gender quota is thus complied with.
Deutsche Börse AG’s Supervisory Board has defined a target quota for women on the Executive Board in
accordance with section 111 (5) AktG. The first minimum target – 20 per cent of the Executive Board
members were to be women – was complied with by the end of the implementation period on
30 June 2017. The quota of women on the Executive Board was 20 per cent at this time. Effective
1 July 2017, the Supervisory Board decided to extend the 20 per cent target quota of women on the
Executive Board until 31 December 2021. This quota, however, declined due to the increase of the
Executive Board to six members as of 1 July 2018, despite the fact that the actual number of women on
the Executive Board did not change. The quota of women on the Executive Board is currently 16.7 per
cent.
The Supervisory Board intends to comply with the 20 per cent target quota for women on the Executive
Board and also intends to further increase the quota for women on the Supervisory Board. This will be
taken into account in future personnel decisions.
International profile
The composition of the Executive Board and the Supervisory Board shall reflect the company’s
international activities. With Barbara Lambert, Charles Stonehill, Clara-Christina Streit and Amy Yip,
there are four shareholder representatives on the Supervisory Board holding non- (or non-exclusive)
German citizenship. Cornelis Kruijssen, employee representative on the Supervisory Board, has the
Dutch nationality. In addition, many of the members of the Supervisory Board have long-term
professional experience in the international field or are working abroad on a permanent basis. The
Supervisory Board will therefore continue to meet the objectives concerning its international
composition.
The same applies to the Executive Board, where Stephan Leithner holds non-German citizenship, and
whose members have gained long-standing international working experience as well.
Educational and professional background
The Supervisory Board has set itself the objective of considering an appropriate range of educational and
professional backgrounds regarding its own composition, as well as regarding the composition of the
Executive Board. The composition of both the Supervisory Board and the Executive Board reflect these
objectives. In addition to possessing professional experience in the financial services industry, members
of the Executive Board and the Supervisory Board also have a professional background in consultancy,
the IT sector, auditing, administration and regulation. In terms of academic education, most members
have economics or legal degrees, in addition to backgrounds in IT, engineering and other areas.
Education and professional experience thus also contribute to fulfilling the previously mentioned
qualification requirements for Supervisory Board members.
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Executive and Supervisory Boards
Management report | Corporate governance statement
Financial statements
Notes
Further information
The composition of both Deutsche Börse AG’s Supervisory Board and Executive Board is in line with the
objectives stated above. Please refer to www.deutsche-boerse.com/supervboard for further information
concerning the members of the Supervisory Board and its committees. For further information
concerning the members of the Executive Board, please see www.deutsche-boerse.com/execboard.
Preparing the election of shareholder representatives to the Supervisory Board
The Supervisory Board's Nomination Committee – whose task it is to propose suitable candidates to the
Supervisory Board for its proposal to the Annual General Meeting – has concerned itself with preparing
the election of shareholder representatives to the Supervisory Board at the Annual General Meeting in
2021. Amy Yip has decided not to stand again for the Supervisory Board. The shareholder
representatives in the Nomination Committee decided on 18 February 2021 to propose eight candidates
for the election of shareholder representatives by the Annual General Meeting to the Supervisory Board.
Seven of the eight proposed candidates were already members of the Supervisory Board, one candidate
has not previously been a member. The committee members ensured that the selected candidates met
all the criteria mentioned above. To this end the shareholder representatives in the Nomination
Committee first drew up a long list of suitable candidates. After interviewing the candidates on the list
the shareholder representatives in the committee agreed on the new candidate for the Supervisory Board
elections in 2021. Information on all candidates including their CV will be available in the agenda for
the Annual General Meeting on 19 May 2021 and can be accessed in advance of the Annual General
Meeting at www.deutsche-boerse.com/hv.
Training and professional development measures for members of the Supervisory Board
As a matter of principle, Supervisory Board members are responsible for their continuing professional
development. Deutsche Börse AG follows recommendation D.12 of the Code and the guidelines of the
European Securities and Markets Authority (ESMA) on management bodies of market operators and data
reporting services providers, and supports Supervisory Board members in this endeavour. For example, it
organises targeted introductory events for new Supervisory Board members and workshops on selected
strategy issues as well as on professional topics (if required). Thus, in addition to one strategy and two
technology workshops, the Supervisory Board held a workshop on legal and compliance matters in the
reporting period. In individual cases, Deutsche Börse AG assumes the costs incurred for third-party
training, as part of its own training programme “Qualified Supervisory Board” for Supervisory Board
members, for instance.
Examination of the effectiveness of Supervisory Board work
Deutsche Börse AG regards regular reviews of the effectiveness of Supervisory Board work – in
accordance with recommendation D.13 of the Code – as a key component of good corporate
governance. The annual self-assessment is supported by an external service provider every third year,
most recently in 2019. The 2020 effectiveness examination was completed in the third quarter by
means of a structured questionnaire and focusing on the tasks and composition of the Supervisory
Board, co-operation between Supervisory Board members and between the Executive Board and the
Supervisory Board, Supervisory Board meetings and Supervisory Board committees. The review yielded
positive results, both in terms of overall effectiveness as well as regarding the audited subject areas.
Where it identifies room for improvement, optimising proposals were discussed by the Supervisory Board
and measures for their execution implemented.
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Executive and Supervisory Boards
Management report | Corporate governance statement
Financial statements
Notes
Further information
In the second half of 2020 the Supervisory Board discussed the efficiency of its work at the initiative of
the new Supervisory Board Chair Martin Jetter. Under his leadership the members of the Chairman’s
Committee, the Chair of the Audit Committee and the Chair of the Risk Committee developed concrete
measures to increase the time available to individual Supervisory Board members for exercising their
advisory function on business and strategy-related topics. The first organisational measures were
implemented when the Supervisory Board meeting was prepared and held in December.
Long-term succession planning for the Executive Board
Together with the Executive Board, the Supervisory Board ensures that long-term succession planning
takes place. For this purpose the Supervisory Board, or its Nomination Committee, regularly – at least
once a year – concerns itself with potential candidates for the Executive Board. The Chair of the
Executive Board is involved in these considerations, provided that the discussions do not refer to their
own succession. The Supervisory Board prepares an applicant profile for vacant Executive Board
positions. The Supervisory Board takes care to ensure that the knowledge, expertise and experience of
all Executive Board members is diverse and well balanced, and adheres to the adopted diversity concept.
Moreover, the Supervisory Board ensures it is informed regularly about the succession planning at the
first level beneath the Executive Board, and provides advice to the Executive Board in this regard.
Target figures for the proportion of female executives beneath the Executive Board
Deutsche Börse AG’s Executive Board has defined target quotas for women on the two management
levels beneath the Executive Board, in accordance with section 76 (4) AktG, in each case referring to
Deutsche Börse AG. By 31 December 2021, the proportion of women holding positions in the first and
second management levels beneath the Executive Board is planned to amount to 15 per cent and 20
per cent, respectively. As per 31 December 2020, the share of women holding positions on the first and
second management levels beneath the Executive Board at Deutsche Börse AG in Germany was
13 per cent and 19 per cent, respectively.
Moreover, as early as in 2010, the Executive Board had adopted a voluntary commitment to increase the
share of women holding middle and upper management positions to 20 per cent by 2020 and of
women holding lower management positions to 30 per cent during the same period. The Group
maintains this ambition for 2021, and has extended the scope of its voluntary commitment over and
above the legal requirements. Firstly, the target figures determined in this context relate to Deutsche
Börse Group (including subsidiaries) worldwide. Secondly, the definition of management levels/positions
was expanded to include heads of teams, for example. On a global level, as at 31 December 2020,
these quotas stood at 16 per cent for upper and middle management levels and 31 per cent for lower
management positions. For Germany, the quotas were 18 per cent and 29 per cent, respectively.
Deutsche Börse Group will continue its existing activities to reach the target quotas and implement
additional measures.
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Deutsche Börse Group | Annual report 2020
Executive and Supervisory Boards
Management report | Corporate governance statement
Financial statements
Notes
Further information
Shareholder representation, transparent reporting and communication
Shareholders exercise their rights at the Annual General Meeting (AGM). In the spirit of good corporate
governance, Deutsche Börse AG aims to make it as easy as possible for shareholders to exercise their
shareholder rights. For instance, Deutsche Börse AG shareholders may follow the AGM over the internet
and can be represented at the AGM by proxies nominated by Deutsche Börse AG. These proxies exercise
voting rights solely in accordance with shareholders’ instructions. Additionally, shareholders may exercise
their voting rights by post or online. Amongst other things, the AGM elects the shareholder
representatives to the Supervisory Board and decides on formal approval for the actions of the Executive
Board and the Supervisory Board. It also passes resolutions on the appropriation of the unappropriated
surplus, resolves on capitalisation measures and approves intercompany agreements and amendments
to Deutsche Börse AG’s Articles of Association and appoints the external auditors. Ordinary AGMs – at
which the Executive Board and the Supervisory Board give an account for the past financial year – take
place once a year.
For the reporting year Deutsche Börse AG decided in view of the COVID-19 pandemic to hold the Annual
General Meeting as a virtual event, without the physical presence of shareholders or their proxies, as
provided for by the “Gesetz über Maßnahmen im Gesellschafts-, Genossenschafts-, Vereins-, Stiftungs-
und Wohnungseigentumsrecht zur Bekämpfung der Auswirkungen der COVID-19-Pandemie” (“Act on
Measures in Corporate, Cooperative, Association, Foundation and Residential Property Law to Combat
the Effects of the Covid-19 pandemic as of 27 March 2020”). This was done, in particular to ensure
that all resolutions, including on the appropriation of profits, could be taken at the scheduled time.
Shareholders were able to follow the entire Annual General Meeting live online and exercise their voting
rights by means of postal voting or appointing the company proxies. Questions could be submitted to the
company electronically up to two days before the Annual General Meeting and were answered in full
during the meeting. Additionally, the company published the speeches by the Chairs of the Executive
Board and Supervisory Board ahead of the Annual General Meeting, enabling shareholders to submit
questions about them in advance too.
To maximise transparency and ensure equal access to information, Deutsche Börse AG’s corporate
communications generally follow the rule that all target groups should receive all relevant information
simultaneously. Deutsche Börse AG’s financial calendar informs shareholders, analysts, shareholders’
associations, the media and interested members of the public of key events such as the date of the
AGM, or publication dates for financial performance indicators.
Ad hoc disclosures, information on directors’ dealings and voting rights notifications, corporate reports
and interim reports, and company news can all be found on Deutsche Börse's website: www.deutsche-
boerse.com. Deutsche Börse AG provides information about its annual and consolidated financial
statements as well as interim reports in conference calls for analysts and investors. Furthermore, a
regular investor day is held and Deutsche Börse continuously outlines its strategy and business
developments to everyone who is interested, abiding by the principle that all target groups worldwide
must be informed at the same time.
Additionally, Deutsche Börse AG submitted a Communication On Progress (COP) for 2020 to the UN
Global Compact. Good corporate governance is one of Deutsche Börse Group’s core concerns, is why it
has complied with the Global Compact’s principles for many years. Public records of this have been
available since the company officially joined the initiative in 2009: www.deutsche-boerse.com >
Sustainability > Our ESG profile > Global initiatives > UN Global Compact.
169
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Executive and Supervisory Boards
Management report | Corporate governance statement
Financial statements
Notes
Further information
Accounting and auditing
Deutsche Börse AG’s annual report provides shareholders and interested members of the public with
detailed information on Deutsche Börse Group’s business performance during the reporting period.
Additional information is published in its half-yearly financial report and two quarterly statements. The
annual financial statement documents and the annual report are published within 90 days of the end of
the financial year (31 December); intra-year financial information (half-yearly financial report and
quarterly statements) is made available within 45 days of the end of the relevant quarter or six-month
period. Following preparations by the Audit Committee, the annual and consolidated financial statements
are discussed by the entire Supervisory Board and with the external auditors, examined, and then
approved. The Executive Board discusses the half-yearly report and the quarterly statements for the first
and third quarters with the Supervisory Board’s Audit Committee prior to their publication. The half-
yearly financial report is reviewed by the external auditors. In line with the proposal by the Supervisory
Board, the 2020 AGM elected KPMG AG Wirtschaftsprüfungsgesellschaft, Berlin, (KPMG) to audit its
2020 annual and consolidated financial statements and to review its half-yearly financial report in the
year under review. KPMG was also instructed to perform a review of the contents of the combined non-
financial statement during the 2020 financial year. The lead auditor, Sven-Olaf Leitz, and the deputy
lead auditor, Klaus-Ulrich Pfeiffer, have been responsible for the audit since 2018. The Supervisory
Board’s proposal was based on the recommendation by the Audit Committee. The Audit Committee
obtained the necessary statement of independence from KPMG before the election. This states that there
are no personal, business, financial or other relationships between the auditor, its governing bodies and
audit managers, on the one hand, and the company and the members of its Executive and Supervisory
Boards, on the other, that could give cause to doubt the auditor’s independence. The Audit Committee
checked that this continued to be the case during the reporting period. It also oversaw the financial
reporting process in 2020. The Supervisory Board was informed in a timely manner of the Committee’s
work and the insights gained; there were no material findings. Information on audit services and fees is
provided in note 6 to the consolidated financial statements.
Based on the resolution taken on 7 November 2019, the Supervisory Board of Deutsche Börse AG will
propose to the Annual General Meeting 2021 to appoint PricewaterhouseCoopers GmbH
Wirtschaftsprüfungsgesellschaft with its registered office in Frankfurt am Main as auditor and Group
auditor for the financial year 2021. In accordance with the procedure laid down in Article 16 (2) of the
EU Auditor Regulation (regulation (EU) No 537/2014 of the European Parliament and of the European
Council of 16 April 2014), the decision proposal was preceded by an extensive selection process, as a
result of which the Audit Committee recommended PricewaterhouseCoopers GmbH
Wirtschaftsprüfungsgesellschaft as the future external auditor.
170
150
Consolidated financial
statements/notes
171
Consolidated financial statements
172
Consolidated income statement
173
Consolidated statement of comprehensive income
174
Consolidated balance sheet
176
Consolidated cash flow statement
178
Consolidated statement of changes in equity
179
Notes to the consolidated financial statements
179
Basis of preparation
188
Consolidated income statement disclosures
204
Consolidated Balance sheet disclosures
252
Other disclosures
277
Responsibility statement by the Executive Board
278
Independent Auditor’s Report
Deutsche Börse Group | Annual report 2020
Executive and Supervisory Boards
Management report
Financial statements | Consolidated income statement
Notes
Further information
Consolidated income statement
for the period 1 January to 31 December 2020
Sales revenue
Treasury result from banking business
Other operating income
Total revenue
Volume-related costs
Net revenue (total revenue less volume-related costs)
Staff costs
Other operating expenses
Operating costs
Note
4
4
4
2020
€m
20191)
€m
3,519.3
3,054.2
196.6
40.5
247.7
13.5
3,756.4
3,315.4
4
– 542.6
– 379.4
3,213.8
2,936.0
5
6
– 822.9
– 545.8
– 747.8
– 516.6
– 1,368.7
– 1,264.4
Result from financial investments
8
24.3
6.7
Earnings before interest, tax, depreciation and amortisation (EBITDA)
1,869.4
1,678.3
Depreciation, amortisation and impairment losses
10
– 264.3
– 226.2
Earnings before interest and tax (EBIT)
1,605.1
1,452.1
Financial income
Financial expense
Earnings before tax (EBT)
Other tax
Income tax expense
Net profit for the period
Net profit for the period attributable to Deutsche Börse AG shareholders
Net profit for the period attributable to non-controlling interests
Earnings per share (basic) (€)
Earnings per share (diluted) (€)
1) Previous year adjusted
8
8
26.0
– 102.9
10.7
– 64.4
1,528.2
1,398.4
– 0.5
9
– 402.6
1,125.1
1,079.9
45.2
21
21
5.89
5.89
– 0.4
– 362.6
1,035.4
1,003.9
31.5
5.47
5.47
172
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Deutsche Börse Group | Annual report 2020
Executive and Supervisory Boards
Management report
Financial statements | Consolidated statement of comprehensive
income
Notes
Further information
Consolidated statement of comprehensive
income
for the period 1 January to 31 December 2020
Net profit for the period reported in consolidated income statement
Items that will not be reclassified to profit or loss:
Changes from defined benefit obligations
Equity investments measured at fair value through OCI
Other
Deferred taxes
Note
2020
€m
2019
€m
1,125.1
1,035.4
– 25.2
25.7
– 0.4
– 0.4
– 0.3
14
Items that may be reclassified subsequently to profit or loss:
Exchange rate differences
14
– 106.2
Other comprehensive income from investments using the equity method
Remeasurement of cash flow hedges
Deferred taxes
Other comprehensive income after tax
Total comprehensive income
thereof Deutsche Börse AG shareholders
thereof non-controlling interests
14
– 0.4
– 40.3
0.1
– 146.8
– 147.1
978.0
950.4
27.6
– 42.1
– 10.4
– 0.9
11.3
– 42.1
– 1.8
– 0.4
0.2
0
– 2.0
– 44.1
991.3
960.6
30.7
173
153
Deutsche Börse Group | Annual report 2020
Executive and Supervisory Boards
Management report
Financial statements | Consolidated balance sheet
Notes
Further information
Consolidated balance sheet
as at 31 December 2020
Assets
NON-CURRENT ASSETS
Intangible assets
Software
Goodwill
Payments on account and assets under development
Other intangible assets
Property, plant and equipment
Land and buildings
Fixtures and fittings
Computer hardware, operating and office equipment
Payments on account and construction in progress
Financial assets
Financial assets at FVOCI
Strategic investments
Debt instruments
Debt financial assets measured at amortised cost
Financial assets at FVPL
Financial instruments held by central counterparties
Other financial debt assets at FVPL
Investment in associates and joint ventures
Other non-current assets
Deferred tax assets
Total non-current assets
CURRENT ASSETS
Debt financial assets measured at FVOCI
Debt financial assets measured at amortised cost
Trade receivables
Other financial assets at amortised cost
Restricted bank balances
Other cash and bank balances
Financial assets at FVPL
Financial instruments held by central counterparties
Other financial assets at FVPL
Income tax assets
Other current assets
Total current assets
Total assets
Note
31 Dec 2020
€m
31 Dec 2019
€m
10
11
12
9
12
12
12
9
13
383.8
3,957.6
126.3
1,255.4
5,723.2
369.2
52.4
101.7
7.0
530.4
107.0
4.4
997.5
6,934.7
42.4
8,086.0
89.5
6.0
161.7
404.5
3,470.5
92.5
1,040.9
5,008.4
346.5
39.8
95.9
15.8
498.0
66.3
0
698.7
5,234.2
28.4
6,027.6
44.5
4.0
124.4
14,596.7
11,706.9
0.5
0
616.6
16,225.1
38,420.1
1,467.3
447.3
15,381.6
29,988.7
888.1
80,768.1
78,301.5
15.8
109.5
548.1
1.8
108.5
340.9
138,171.0
125,458.4
152,767.7
137,165.3
174
154
Deutsche Börse Group | Annual report 2020
Executive and Supervisory Boards
Management report
Financial statements | Consolidated balance sheet
Notes
Further information
Equity and liabilities
EQUITY
Subscribed capital
Share premium
Treasury shares
Revaluation surplus
Accumulated profit
Shareholders’ equity
Non-controlling interests
Total equity
NON-CURRENT LIABILITIES
Provisions for pensions and other employee benefits
Other non-current provisions
Financial liabilities measured at amortised cost
Financial liabilities at FVPL
Financial instruments held by central counterparties
Other financial liabilities at FVPL
Other non-current liabilities
Deferred tax liabilities
Total non-current liabilities
CURRENT LIABILITIES
Income tax liabilities
Other current provisions
Financial liabilities at amortised cost
Trade payables
Other financial liabilities at amortised cost
Cash deposits by market participants
Financial liabilities at FVPL
Financial instruments held by central counterparties
Other financial liabilities at FVPL
Other current liabilities
Total current liabilities
Total liabilities
Total equity and liabilities
Note
31 Dec 2020
€m
31 Dec 2019
€m
14
190.0
1,352.4
– 465.2
– 92.6
5,183.7
6,168.3
387.8
6,556.1
222.4
168.0
190.0
1,344.7
– 471.8
– 52.1
4,724.5
5,735.3
375.3
6,110.6
208.2
210.5
3,474.4
2,627.2
6,934.7
5,234.2
1.5
13.9
216.7
84.3
19.7
226.3
11,031.4
8,610.4
267.1
313.7
231.8
250.7
388.6
14,630.0
38,188.8
206.7
14,225.4
29,755.8
80,673.1
77,411.5
174.1
544.7
29.5
332.9
135,180.2
122,444.3
146,211.6
131,054.7
152,767.7
137,165.3
16
17, 18
12
12
9
18
12
12
19
175
155
Deutsche Börse Group | Annual report 2020
Executive and Supervisory Boards
Management report
Financial statements | Consolidated cash flow statement
Notes
Further information
Consolidated cash flow statement
for the period 1 January to 31 December 2020
Net profit for the period
Depreciation, amortisation and impairment losses
(Decrease)/increase in non-current provisions
Deferred tax income
Other non-cash income
Changes in working capital, net of non-cash items:
Decrease/(increase) in receivables and other assets
Increase/(decrease) in current liabilities
Increase in non-current liabilities
Net loss on disposal of non-current assets
Cash flows from operating activities excluding CCP positions
Changes in liabilities from CCP positions
Changes in receivables from CCP positions
Cash flows from operating activities
Payments to acquire intangible assets
Payments to acquire property, plant and equipment
Payments to acquire non-current financial instruments
Payments to acquire investments in associates and joint ventures
Payments to acquire subsidiaries, net of cash acquired
Effects of the disposal of (shares in) subsidiaries, net of cash disposed
Proceeds from the disposal of shares in associates and joint ventures
(Net increase)/net decrease in current receivables and securities from banking
business with an original term greater than three months
Net increase/(net decrease) in current liabilities from banking business with an
original term greater than three months
Proceeds from disposals of non-current financial instruments
Proceeds from disposals of intangible assets
Cash flows from investing activities
Proceeds from sale of treasury shares
Payments to non-controlling interests
Proceeds from non-controlling interests
Repayment of long-term financing
Proceeds from long-term financing
Finance lease payments
Dividends paid
Cash flows from financing activities
Note
10, 11
9
2020
€m
2019
€m
1,125.1
1,035.4
264.3
– 61.8
– 11.9
143.6
82.8
– 78.6
163.5
– 2.1
– 19.0
1,523.0
– 832.8
226.2
5.9
– 15.4
52.5
– 273.0
– 106.4
– 159.2
– 7.4
– 1.0
1,030.6
1,895.7
721.8
– 2,000.2
20
1,412.0
926.1
– 134.3
– 61.2
– 601.2
– 26.4
– 448.5
20.2
0
– 123.0
– 61.9
– 226.5
– 9.5
– 666.4
0.1
4.7
– 341.5
371.4
177.4
625.3
2.5
– 62.3
47.8
2.6
22
– 787.7
– 722.9
9.1
– 26.6
0
945.5
– 602.9
– 47.4
– 531.9
– 254.2
6.2
– 24.5
655.3
0
0
– 42.6
– 495.0
99.4
15
20
Net change in cash and cash equivalents
370.0
302.6
176
156
Deutsche Börse Group | Annual report 2020
Executive and Supervisory Boards
Management report
Financial statements | Consolidated cash flow statement
Notes
Further information
Net change in cash and cash equivalents (brought forward)
Effect of exchange rate differences
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period
Interest-similar income received
Dividends received
Interest paid
Income tax paid
Notes
20
2020
€m
370.0
– 8.9
2,145.5
2,506.7
526.1
5.4
– 352.4
– 381.8
2019
€m
302.6
3.9
1,839.0
2,145.5
540.1
4.7
– 323.0
– 494.1
177
157
Deutsche Börse Group | Annual report 2020
Executive and Supervisory Boards
Management report
Financial statements | Consolidated statement of changes in equity
Notes
Further information
Consolidated statement of changes in equity
for the period 1 January to 31 December 2020
Attributable to owners of Deutsche Börse AG
Subscribed
capital
Share
premium
Treasury
shares
Revalua-
tion
surplus
Accumu-
lated
profit
Share-
holders'
equity
Non-
controlling
interests
Total
equity
€m
€m
€m
€m
€m
€m
€m
€m
Balance as at 1 January 2019
190.0
1,340.4
– 477.7
– 10.2
3,779.4
4,821.9
133.5 4,955.4
Net profit for the period
Other comprehensive income
after tax
Total comprehensive income
Exchange rate differences and
other adjustments
Sales under the Group Share
Plan
Changes due to capital
increases/decreases
Changes from business
combinations
Dividends paid
Transactions with shareholders
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
1,003.9
1,003.9
31.5 1,035.4
– 41.9
– 1.4
– 43.3
– 0.8
– 44.1
–
– 41.9
1,002.5
960.6
30.7
991.3
–
–
13.5
13.5
– 0.8
12.7
4.3
5.9
–
–
–
–
–
–
4.3
5.9
–
–
–
10.2
–
10.2
–
–
– 24.5
– 24.5
–
424.1
424.1
236.4
660.5
–
–
– 495.0
– 495.0
– – 495.0
– 57.4
– 47.2
211.1
163.9
Balance as at 31 December 2019
190.0
1,344.7
– 471.8
– 52.1
4,724.5
5,735.3
375.3 6,110.6
Balance as at 1 January 2020
190.0
1,344.7
– 471.8
– 52.1
4,724.5
5,735.3
375.3 6,110.6
Profit for the period
Other comprehensive income
Total comprehensive income
Exchange rate differences and
other adjustments
Sales under the Group Share
Plan
Changes from non-controlling
interests
Dividends paid
Transactions with shareholders
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
7.7
6.6
–
–
–
–
7.7
6.6
–
1,079.9
1,079.9
45.2 1,125.1
– 40.5
– 89.0
– 129.5
– 17.6 – 147.1
– 40.5
990.9
950.4
27.6
978.1
–
–
–
–
–
0.2
0.2
– 0.2
0.0
–
14.3
–
14.3
–
–
11.7
11.7
– 531.9
– 531.9
– 26.6 – 558.5
– 531.7
– 517.4
– 15.1 – 532.5
Balance as at 31 December 2020
190.0
1,352.4
– 465.2
– 92.6
5,183.7
6,168.3
387.8 6,556.1
178
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Executive and Supervisory Boards
Management report
Financial statements
Notes | Basis of preparation
Further information
Notes to the consolidated financial statements
Basis of preparation
1. General principles
Company information
Deutsche Börse AG is the parent company of Deutsche Börse Group. Deutsche Börse AG (the
“company”) has its registered office in Frankfurt/Main, Germany, and is registered in the commercial
register B of the Frankfurt/Main Local Court (Amtsgericht Frankfurt am Main) under HRB 32232.
Deutsche Börse AG and its subsidiaries operate cash and derivatives markets. Its business areas range
from pre-IPO and growth financing services, the admission of securities to listing, through trading,
clearing and settlement, down to custody of securities. Furthermore, IT services are provided and market
information distributed. Moreover, certain subsidiaries of Deutsche Börse AG own a banking license and
offer banking services to customers. For details regarding internal organisation and reporting, see
Fundamental information about the Group.
Basis of reporting
The 2020 consolidated financial statements have been prepared in compliance with the International
Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB)
and the related interpretations issued by the International Financial Reporting Interpretations Committee
(IFRIC), as adopted by the European Union in accordance with Regulation No. 1606/2002 of the
European Parliament and of the Council on the application of international accounting standards.
The disclosures required in accordance with the Handelsgesetzbuch (HGB, German Commercial Code)
section 315e (1) have been presented in the notes to the consolidated financial statements and the
remuneration report of the combined management report.
The consolidated income statement is structured using the nature of expense method.
Deutsche Börse AG’s consolidated financial statements have been prepared in euros, the functional
currency of Deutsche Börse AG. Unless stated otherwise, all amounts are shown in millions of
euros (€m). Due to rounding, actual amounts may differ from unrounded or disclosed figures. This may
cause slight deviations from the figures disclosed in the previous year.
Disclosures on capital mangement are included in the risk report section of the combined management
report and are are an integral part of the consolidated financial statements. These audited disclosures
are color-coded int the risk report with a gray background.
All accounting policies, estimates, measurement uncertainties and discretionary judgements referring to
a specific subject matter are described in the corresponding note. Such disclosures are focused on
applicable accounting options under IFRSs. Deutsche Börse Group does not present the underlying
179
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Executive and Supervisory Boards
Management report
Financial statements
Notes | Basis of preparation
Further information
published IFRS guidelines, unless this is considered crucial to enhance transparency. The annual
financial statements of subsidiaries included in the consolidated financial statements have been
prepared on the basis of the Group-wide accounting policies based on IFRS that are described in the
following. They were applied consistently to the periods shown.
The listing of the composition of items of assets and liabilities and items of the consolidated statement of
comprehensive income is based on materiality. Deutsche Börse Group defines materiality as a share of
approximately 10 percent of the relevant total.
New accounting standards – implemented in the year under review
In the 2020 reporting period, the following standards and interpretations issued by the IASB and
adopted by the European Commission were applied to Deutsche Börse Group for the first time. They
were not applied earlier than required.
Standard/Amendment/Interpretation
IAS 1, IAS 8
Amendment: Definition of Material
1 Jan 2020
none-material
IFRS 3
Amendment: Definition of a Business
IFRS 9, IAS 39, IFRS 7
IBOR Reform 1: amendments of IFRS 9, IAS 39 and IFRS 7
IFRS 16
Amendment: COVID-19-related to rent concessions
1 Jan 2020
1 Jan 2020
1 June 2020
none
none
none
Revised Framework
1 Jan 2020
none-material
Application date
Effects at
Deutsche Börse
Group
New accounting standards – not yet implemented
The IASB issued the following new or amended Standards and Interpretations, which were not applied
in the consolidated financial statements, because endorsement by the EU was still pending or the
application was not mandatory. The new or amended Standards and Interpretations must be applied for
financial years beginning on or after the effective date. Even though early application may be permitted
for some standards, Deutsche Börse Group does usually not use any early application options.
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Executive and Supervisory Boards
Management report
Financial statements
Notes | Basis of preparation
Further information
Standard/Amendment/Interpretation
Application date
Effects at
Deutsche Börse
Group
IAS 1
IFRS 3
IFRS 4
Amend-ments in clas-si-fi-ca-tion of li-a-bil-i-ties as current or non-current
1 Jan 2023 See notes under
this table
Amendments to IFRS 3 relate to a reference to the Conceptual Framework
1 Jan 2022
Amendment to IFRS 4: Extension of the temporary exemption from
applying IFRS 9
1 Jan 2021
non
none
IFRS 9, IAS 39, IFRS 7,
and others
IBOR REFORM 2: Amendment of IFRS 9, IAS 39 and IFRS 7 and other
standards
1 Jan 2021 See notes under
this table
IAS 16
IFRS 17
Amendments to IAS 16: Clarifications
Insurance Contracts
1 Jan 2022
none
1 Jan 2023 See notes under
this table
IAS 37
Amendments to IAS 37: Onerous contracts - Cost of Fulfilling a Contract
1 Jan 2022
Annual Improvement
Cycle 2018 - 2020
The annual improvements resulted in amendments to IFRS 1, IFRS 9, IAS
41 and IFRS 16
1 Jan 2022
none
none
Amendment to IAS 1 Classification of Liabilities as Current or Non-current
The amendments only relate to the presentation of liabilities in the statement of financial position – not
the amount or the timing of recognition of assets, liabilities, income and expenses or disclosure made by
entities about these items. The amendments clarify that liabilities must be classified as current or non-
current on the basis of the rights that are in existence at the reporting date. The potential effects of
amendments to the presentation of consolidated financial statements of Deutsche Börse Group are
currently being examined.
Amendment of IFRS 9, IAS 39 and IFRS 7 and other standards – IBOR Reform Phase 2
IBOR Reform Phase 2 relates to matters that may have an effect on financial reporting when a reference
interest rate is replaced by an alternative interest rate. The amendments concern exemptions for the
presentation and recognition of contractual modifications to financial instruments. The change in
contractual cash flows is not to be shown in the result of the modification; the subsequent measurement
is rather to be made on the basis of the updated effective interest rate, so capturing the effect on
earnings over the remaining term. This expedient affects Deutsche Börse Group in terms of the
recognition and presentation of floating-rate financial instruments, to the extent that old reference
interest rates have to be replaced due to the reform. The practical expedient also states that hedging
relationships are not discontinued solely because of such adjustments. This amendment has no effect on
the consolidated financial statements of Deutsche Börse Group, because it does not use interest rate
hedges. There are also additional disclosure obligations that particularly affect the presentation of risk
management by Deutsche Börse Group.
IFRS 17 “Insurance Contracts”
IFRS 17 establishes the principles for the recognition, measurement, presentation and disclosure of
insurance contracts. The objective of IFRS 17 is to ensure that an entity provides relevant information
that faithfully represents insurance contracts. According to the standard, insurance liabilities shall be
measured at the current fulfilment cash flows instead of historical costs. Furthermore, the objective is to
form a uniform basis regarding the recognition, measurement and presentation of insurance contracts,
including the notes. The effective date was deferred and is now applicable in the EU for financial years
beginning on or after 1 January 2023 The standard has not yet been endorsed by the EU. On the basis
of our analysis we are not expecting any effect on the financial position and financial performance of
Deutsche Börse Group.
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Executive and Supervisory Boards
Management report
Financial statements
Notes | Basis of preparation
Further information
2. Consolidation principles
Intra-Group assets and liabilities are eliminated. Income arising from intra-Group transactions is netted
against the corresponding expenses. Intercompany profits or losses arising from deliveries of intra-Group
goods and services, as well as dividends distributed within the Group, are eliminated. Deferred taxes for
consolidation adjustments are recognised where these are expected to reverse in subsequent years.
Interests in equity attributable to non-controlling interest shareholders are carried under “non-controlling
interests” within equity. Where these are classified as “puttable instruments”, they are reported under
“liabilities” at cost.
Currency translation
Transactions denominated in a currency other than a company’s functional currency are translated into
the functional currency at the spot exchange rate applicable at the transaction date. At the reporting
date, monetary balance sheet items in foreign currency are measured at the exchange rate at the
reporting date, while non-monetary balance sheet items recognised at historical cost are measured at the
exchange rate on the transaction date. By contrast, non-monetary balance sheet items measured at fair
value are translated at the exchange rate prevailing at the valuation date. Exchange rate differences for
monetary balance sheet items are recognised either as other operating income or expenses, or as the
treasury result from banking business or as result from financial investments in the period in which they
arise, unless the underlying transactions are hedged. Exchange rate differences for non-monetary
balance sheet items at fair value are recognised in other comprehensive income. Gains and losses from
a monetary item that forms part of a net investment in a foreign operation are recognised directly in
“retained earnings”.
The balance sheet items of companies whose functional currency is not the euro are translated into the
reporting currency as follows: assets and liabilities are translated into euros at the closing rate, equity is
translated at historical rates and the items in the consolidated income statement are translated at the
average exchange rates for the reporting period. Resulting exchange differences are recognised directly in
“retained earnings”. When the relevant subsidiary is sold, these exchange rate differences are recognised
in the net profit for the period in which the deconsolidation gain or loss is realised.
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Executive and Supervisory Boards
Management report
Financial statements
Notes | Basis of preparation
Further information
The following euro exchange rates of consequence to Deutsche Börse Group were applied:
Exchange rates
Swiss francs
US dollars
Czech koruna
Singapore dollar
British pound
Average rate
Average rate
2020
1.0713
1.1477
2019
1.1112
1.1195
Closing price as
at 31 Dec 2020
Closing price as
at 31 Dec 2019
1.0832
1.2299
1.0857
1.1212
CHF (Fr.)
USD (US$)
CZK (Kč)
26.5249
25.6700
26.2698
25.4068
SGD (S$)
GBP (£)
1.5791
0.8908
1.5256
0.8767
1.6254
0.8999
1.5090
0.8537
Any goodwill arising on the acquisition of a foreign operation and any fair value adjustments to the
carrying amounts of assets and liabilities arising from initial consolidation are reported in the functional
currency of the foreign operation and translated at the closing rate.
Net investments in a foreign operation
Translation differences arising from a monetary item that is part of a net investment in a foreign
operation of Deutsche Börse Group are initially recognized in other comprehensive income and
reclassified from equity to profit or loss on disposal of the net investment.
Subsidiaries and business combinations
Deutsche Börse AG and all subsidiaries directly or indirectly controlled by Deutsche Börse AG are
included in the consolidated financial statements. Deutsche Börse AG controls a company if it is exposed
to variable returns resulting from its involvement with the company in question or has rights to such
returns and is able to influence them by using its power over the company.
Initial consolidation of subsidiaries in the course of business combinations uses the purchase method.
The acquiree’s identifiable assets, liabilities and contingent liabilities are recognised at their acquisition
date fair values. Any excess of cost over the acquirer’s interest in the fair value of the subsidiary’s net
identifiable assets is recognised as goodwill. Goodwill is reported in subsequent periods at cost less
accumulated impairment losses.
Deutsche Börse AG’s equity interests in subsidiaries, associates and joint ventures as at
31 December 2020 included in the consolidated financial statements are presented in the list of
shareholdings in note 33.
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Executive and Supervisory Boards
Management report
Financial statements
Notes | Basis of preparation
Further information
Acquisitions
Fondcenter AG, Zurich, Switzerland (Fondcenter)
In the third quarter of 2020 Clearstream Holding AG, Frankfurt, Germany (a wholly-owned subsdiary of
Deutsche Börse AG) completed the acquisition of 51.2 per cent of the shares in Fondcenter AG Zurich,
Switzerland (since renamed Clearstream Fund Centre AG) for a purchase price of CHF 392.5 million (1st
tranche). Clearstream Holding AG will acquire the remaining 48.8 per cent of the shares in the course of
a second transaction (2nd tranche). The acquisition of the 2nd tranche is expected to take place in the
second quarter of 2022. Deutsche Börse Group recognised the related purchase price liability of
CHF 433.4 million in the category “Financial liabilities measured at amortised cost” when the 1st
tranche was consolidated as of 30 September 2020 and so does not present an “Equalisation item for
non-controlling interests”. This liability is measured at the expected settlement amount using the
effective interest method.
The new entity will be the centre of excellence for fund distribution services within the Deutsche Börse
Group and is presented in the IFS segment. Combining it with the existing services from Clearstream
Fund Desk (formerly Swisscanto Funds) creates a leading provider of fund services, with great benefits
for the customers of UBS and Clearstream.
Deutsche Börse Group expects the transaction to deliver considerable synergies both in terms of revenue
and cost effects. Such synergies are reflected in particular by the goodwill resulting from the transaction.
The purchase price allocation – preliminary as at the reporting date – yielded the following effects:
Goodwill resulting from the business combination with Fondcenter AG
Consideration transferred
Purchase price in cash
Effective part of the cashflow hedge
Put options
Acquired bank balances
Total consideration
Acquired assets and liabilities
Customer relationships
Software
Other non-current assets
Current assets
Deferred tax assets
Pension provisions (less plan assets)
Other non-current liabilities
Current liabilities
Total assets and liabilities acquired
Goodwill (not tax-dedutcible)
Preliminary
goodwill
calculation
30 Sep 2020
€m
363.3
3.1
401.5
– 3.8
764.1
240.6
5.6
2.0
120.8
34.7
– 3.6
– 1.3
– 119.6
279.2
484.9
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Executive and Supervisory Boards
Management report
Financial statements
Notes | Basis of preparation
Further information
The full consolidation of Fondscenter resulted in an increase in net revenue of €14.1 million as well
as an increase in earnings after tax amounting to €8.1 million. If the company had been fully
consolidated as at 1 January 2020, this would have resulted in an increase in net revenue of €46.2
million as well as an increase in income after tax amounting to €11.1 million.
Quantitative Brokers, LLC, New York, USA (Quantitative Brokers)
In the fourth quarter 2020 Deutsche Boerse Systems Inc., Chicago, USA (a wholly-owned subsidiary of
Deutsche Börse AG) completed the acquisition of 72.8 per cent of the shares in Quantitive Brokers, LLC,
New York, USA, for a purchase price of US$ 108.9 million. The parties also agreed on reciprocal
options that may over time lead to a complete acquisition of the shares in Quantitative Brokers. Since
Deutsche Börse Group can choose to fulfil these options with treasury shares, the shares are classified
as equity and no financial liability is recognised.
Quantitative Brokers is an independent provider of sophisticated execution algorithms and data-based
analytics applications for global futures, option and interest rate markets. The transaction is allocated to
the Eurex segment. Deutsche Börse Group is expecting significant synergies from the transaction,
particularly in revenue, which is reflected in the goodwill resulting from the transaction. The purchase
price allocation – preliminary as at the reporting date – yielded the following effects:
Goodwill resulting from the business combination with Quantitative Brokers, LLC
Consideration transferred
Purchase price in cash
Cash-Flow Hedge
Acquired bank balances
Total consideration
Acquired assets and liabilities
Customer relationships
Software
Property, Plant & Equipment
Current assets
Non-current liabilities
Current liabilities
Deferred tax liabilities on temporary differences
Non-controlling interests
Total assets and liabilities acquired
Goodwill (bot tax-deductible)
Preliminary
goodwill
calculation
1 Dec 2020
€m
90.5
0.5
– 8.1
82.9
29.5
10.2
1.7
3.0
– 1.4
– 8.4
– 4.1
– 11.7
18.8
64.1
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Executive and Supervisory Boards
Management report
Financial statements
Notes | Basis of preparation
Further information
The full consolidation of Quantitative Brokers resulted in an increase in net revenue of €1.3 million as
well as a reduction of earnings after tax amounting to €– 0.2 million. If the company had been fully
consolidated as at 1 January 2020, this would have resulted in an increase in net revenue of €18.8
million as well as a reduction of income after tax amounting to €– 3.3 million.
Axioma Inc, New York, USA (Axioma)
In the context of the acquisition of Axioma Inc, New York, USA (Axioma) on 13 September 2019 there
was an adjustment to the opening balance sheet with an effect on the preliminary goodwill within the
12-month period. This adjustment resulted in a reduction of current financial assets and a corresponding
increase in goodwill of €4.3 million.
The final purchase price allocation is as follows:
Goodwill resulting from the business combination with Axioma Inc.
Consideration transferred
Purchase price in cash
Non-controlling interests
Acquired bank balances
Total consideration
Acquired assets and liabilities
Customer relationships
Trade names
Software
Software in development
Other non-current assets
Other current assets (without cash)
Deferred tax liabilities
Other non-current and current liabilities
Contract liabilties
Total assets and liabilities acquired
Goodwill (not tax-deductible)
Preliminary
goodwill
calculation
13 Sep 2019
€m
648.3
84.0
– 1.9
730.3
36.3
65.0
90.3
15.2
15.2
37.2
– 36.8
– 71.5
– 21.5
129.4
600.9
Institutional Shareholder Services Inc., Rockville, USA (ISS)
Deutsche Börse AG announced on 17 November 2020 that it had signed binding contracts for the
acquisition of Institutional Shareholder Services, Inc. (ISS), a leading provider of governance solutions,
ESG data and analytics.
Deutsche Börse will hold a majority share of approximately 81 per cent of ISS. The transaction is based
on a valuation of US$ 2,275 million cash and debt-free for 100 per cent of ISS. Deutsche Börse
financed €1 billion of the transaction with debt and the remainder with cash.
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Financial statements
Notes | Basis of preparation
Further information
The expertise of ISS in ESG and data will enable Deutsche Börse to become a leading global provider of
ESG data. The two companies’ business is largely complementary and enables revenue synergies along
the entire value chain of Deutsche Börse Group.
When the transaction is complete ISS will continue to operate with the same independence as before
with regard to its data and research services. The current management team around CEO Gary Retelny
will co-invest in the transaction and continue to manage the ISS business after the transaction.
The transaction was closed on 25 February 2021 and ISS will be reported in Deutsche Börse Group’s
financial statements as a separate operating segment from that date.
Associates
Investments in associates and joint ventures are measured at cost on initial recognition and accounted
for using the equity method upon subsequent measurement. Where Deutsche Börse Group’s share of the
voting rights in a company amounts to less than 20 per cent, Deutsche Börse Group’s significant
influence is exercised through the Group’s representation on the supervisory board or the board of
directors.
3. Adjustments
Deutsche Börse Group modified its segment reporting with effect from the first quarter of 2020
to better emphasise the Group’s growth areas. The former GSF (collateral management) segment has
been allocated in full to the Clearstream (post-trading) segment. The former Data (data business)
segment is now reported within the Xetra (securities trading) and Eurex (financial derivatives) segments.
In this context the existing goodwill for the previous segments is also allocated to the cash-generating
units (CGU).
Deutsche Börse Group adjusted the structure of the consolidated income statement in 2020 to enable
greater transparency concerning the Group’s financial performance. The former item “Net interest
income from banking business” has been renamed “Treasury result from banking business”. “Net income
from strategic investments” was renamed “Result from financial investments”, since this is a more
accurate description.
For all adjustments, there was no impact on the consolidated statement of comprehensive income,
consolidated balance sheet, consolidated statement of changes in equity, consolidated statement of cash
flows and earnings per share.
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Notes | Notes on the consolidated income statement
Further information
Notes on the consolidated income statement
4. Net revenues
Recognition of income and expenses
Overall, Deutsche Börse Group’s net revenue comprised the following items:
◼ Revenue,
◼ Treasury result from banking business,
◼ Other operating income, and
◼ Volume-related costs.
Revenue recognition
This section comprises details on revenue from contracts with customers. This includes in particular:
revenue recognition, trade receivables as well as contract liabilities (see note 19 concerning the balances
of contractual liabilities). Revenue is recognised in Deutsche Börse Group’s segments as follows:
Eurex (financial derivatives)
Revenue in the derivatives business is generated primarily from equity index derivatives, interest rate
derivatives and equity derivatives, fees that are charged for transactions with regard to the
matching/registration, administration and regulation of order book and off-book transactions on Eurex
Germany. Fees, as well as any reductions are specified in price lists and circulars. Rebates depend
mainly on monthly volumes or the monthly fulfilment of liquidity provisioning obligations in certain
products or product groups. Revenue for transactions in listed derivatives is recognised as soon as
contracts are matched/registered and there is no unfulfilled obligation towards the customer. Receivables
are recognised if the agreed service is rendered at a specific point in time and the claim to the
consideration solely depends on the course of time. Transaction fees are invoiced on a monthly basis
and are payable when invoiced. Since discounts are generally granted on a monthly basis, the
recognition of a contractual liability is not necessary. Payments are generally debited directly from the
clearing member immediately after invoicing.
Fees are also collected for clearing and settlement services provided for off-exchange (over-the-counter,
OTC) transactions, mainly comprising posting and administration fees. Fees for these transactions and
the related discounts are also specified in price lists and circulars of Eurex Clearing AG. In the case of
OTC transactions, posting fees are recognised at novation on a monthly basis. These fees are recognised
at a specific point in time; namely, when the promised service is transferred at a specific point in time,
and the entitlement to consideration depends solely on the passage of time. OTC administrative fees are
recognised over time as the service is provided until the transaction has been closed, terminated or has
matured. A receivable is recognised monthly based on the usage within the respective month, provided
that the respective position is still open at month end. In general, the payments are directly debited from
the clearing member.
In addition, infrastructure fees are charged for the technical connections to the trading and clearing
systems of Deutsche Börse Group. The customer has use of the company’s service and uses the service
as it is performed over the life of the contract. As the smallest reporting period is the same as the
contract term, the percentage of completion equals 100 per cent. The infrastructure revenue generated
from this is usually realised monthly with invoicing.
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Notes | Notes on the consolidated income statement
Further information
Market participants subscribe to real-time trading and market signals or licence these services for their
own use, processing, or dissemination. The customer simultaneously receives and consumes the
benefits provided by the entity’s performance during the contract term. Customers report their usage,
and fees are charged in the month after usage. Deutsche Börse Group puts together monthly estimates
that are based on the trend of the preceding months. Revenue estimates are revised when warranted by
the circumstances. Increases and decreases in estimated revenue are reflected in the consolidated
income statement in the period in which the circumstances that give rise to the revision become known
by the management. Revenue is recognised based on the price specified in the price list. Customers are
invoiced on a monthly basis, and consideration is payable when invoiced.
EEX (commodities)
Its product portfolio comprises contracts on power, natural gas and emission allowances, as well as
freight rates and agricultural products. Revenue is generated primarily from fees that are charged for
exchange trading and clearing of commodity products. Transaction fees are specified in the price list.
Rebates are granted primarily in the form of monthly rebates for the provision of a certain volume or level
of liquidity. These types of rebates are dependent upon the total monthly volume or the monthly
fulfilment of certain liquidity provision obligations. Revenue is recognised as soon as contracts are
matched/registered and there is no unfulfilled obligation towards the customer as the service has already
been performed by this point in time. EEX recognises receivables when the promised service is provided
at a certain time and the entitlement to consideration depends solely on the passage of time. Most of the
invoiced amounts are debited directly from the clearing members. Infrastructure fees are accounted for in
the same way as described in the section “Eurex (financial derivatives)”.
360T (foreign exchange)
360T is a provider of optimised services covering the entire trading process of foreign-exchange products
and generates commission income from trading fees. In addition, 360T generates other fees in the form
of access fees to use the trading platform, installation fees from the onboarding of customers on its
trading platform, as well as user set-up fees and fees for the programming and maintenance of
necessary interfaces. Revenue is recognised when the contractually agreed service is provided to the
customer. Revenue from the use of the platform and maintenance fees are recognised on a pro-rata
basis. Access fees, transaction fees, as well as trading platform fees, contain different discount
schedules on a monthly basis. Such discounts are considered accordingly in the month in which the
services are rendered and reduce the sales revenue of such period. They are invoiced on a monthly
basis. Maintenance fees are invoiced on an annual basis.
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Notes | Notes on the consolidated income statement
Further information
Xetra (securities trading)
As a general rule, securities intended for trading on the regulated market of Fankfurter Wertpapierbörse
(FWB, the Frankfurt Stock Exchange) are subject to the admission and listing, or inclusion, resolved by
FWB’s Exchange Management. Deutsche Börse AG, as the operator of the public-sector exchange,
charges fees for the admission, listing, inclusion and quotation of securities on the regulated market.
Fees charged for the admission and inclusion of securities with definite maturities on the regulated
market are realised using the projected useful lives of the underlying securities. Accordingly, the fees
charged for the listing of securities on the regulated unofficial market are realised using the projected
useful lives of the underlying securities. The method for measuring the percentage of completion of the
performance obligation on the basis of projected useful lives is considered appropriate within the
meaning of IFRS 15. Invoicing is made on a quarterly basis, and receivables are payable upon receipt of
invoice.
Listing fees are levied for the activity of all bodies of FWB, which supervise the trading and the
settlement of trades as well as ensure the proper functioning of all trading activities (permanent
possibility to make use of exchange facilities). Listing fees are recurring fees, which are charged for a
service that is delivered over time. Accordingly, revenue is realised on a pro-rata basis. Revenue from
fees for listings on the regulated unofficial market is realised in a similar manner. This revenue is
presented under “Listing revenue”.
Contracts for trading and clearing cash market products, contracts for trading data and market signals
and contracts for infrastructure services in the Xetra (securities trading) segment are accounted for in the
same way as described in the section “Eurex (financial derivatives)”.
Clearstream (post-trading)
Clearstream provides post-trading infrastructure and services; it offers transaction settlement services as
well as administration and custody of securities. The fees are calculated in accordance with the prices
set in the price list as well as with any relevant discounts granted. In accordance with the general terms
and conditions, the customer authorises direct debiting and consequently no financing component has
been identified. Customers in the custody business receive the benefit from the service provided and
consume it at the same time as the performance is fulfilled during the contract period. The revenue
generated from this is generally realised on a monthly basis upon invoicing.
Fees collected for the administration of securities and for settlement services are recognised when the
agreed service is provided to the customer. This occurs when instructions are received and the
transactions are processed. The service has been fulfilled at this point in time. Receivables are
recognised if the agreed service is rendered at a specific point in time and the claim to the consideration
solely depends on the course of time. Since discounts are generally granted on a monthly basis, the
recognition of a contractual liability is not necessary. Customers are invoiced on a monthly basis and
consideration is payable when invoiced.
Via Clearstream, Deutsche Börse Group provides a comprehensive range of global securities financing
(GSF) services with the two most prominent being collateral management and securities lending
services. Customers of collateral management services simultaneously receive and consume the benefits
with the company’s performance of the service. Revenue is recognised over time concurrent with the
provision of collateral management services. Services in the securities lending business, on the other
hand, are provided at a specific point in time.
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Notes | Notes on the consolidated income statement
Further information
In addition, infrastructure fees are charged for the technical connections to the custody and clearing
systems of Deutsche Börse Group. They are accounted for in the same way as described in the section
“Eurex (financial derivatives)”.
IFS (investment fund services)
The IFS segment provides services to standardise fund processing and to increase efficiency and safety
in the investment fund sector. The services offered comprise order routing, settlement and asset
administration, as well as custody services. With the acquisiton of Fondcenter AG (now Clearstream
Fund Centre AG), IFS expands its range of services to include the distribution and placement of domestic
and foreign collective investments schemes. Services and distribution agreements are concluded with
fund providers and asset managers. The so-called Trailer Fee In is incurred; these fees are presented in
“Funds Distribution”. The trailer fee margin, which is the difference between the trailer fees paid by the
fund providers for the distribution of their funds and the trailer fees ultimately paid by the Fund Centre to
the distribution partners, is included in the Net Revenue. In addition, service fees are recognised for the
administration of the distribution agreements and for granting access to the fund platform. Revenue is
recognised when the promised service is transferred to the customer. This occurs when instructions are
received and the transactions are processed. The service has been fulfilled at this point in time. Revenue
is recognised based on the price specified in the price list and reduced by the corresponding rebates.
Customers are invoiced on a monthly basis and consideration is payable when invoiced.
Qontigo (index and analytics business)
The Qontigo segment comprises the index and analytics business. The index offering ranges from blue-
chip to benchmark to strategy to sustainability to smart-beta indices. The Group generates revenue from
calculating and marketing indices, which financial market participants use as underlyings for financial
instruments or as a benchmark for the performance of investment funds. In its analytics business
Qontigo offers its clients risk-analytics and portfolio-construction tools.
Customers in the index business simultaneously receive and consume all of the benefits provided during
the contract term. The recognition of revenue for index licences is based on fixed payments, variable
payments (usage-based volumes; mostly assets under management), or a combination of the two. For
variable payments, customers report their usage, and fees are invoiced in the quarter after usage;
monthly estimates are recognised. This is determined either based on the customer’s average usage over
the previous twelve months, adjusted to take into account current developments in the markets, or
based on the real data in the markets on a customer level. Revenue estimates are revised when
warranted by the circumstances. Increases and decreases in estimated revenue are reflected in the
consolidated income statement in the period in which the circumstances that give rise to the revision
become known by the management. For two fee components (minimum fee and usage-based fee), a
contract liability is recognised and reduced each month based on the usage that has been recognised
each month. Customers are invoiced on a quarterly basis, and consideration is payable when invoiced.
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Financial statements
Notes | Notes on the consolidated income statement
Further information
Customers of the analytics business either receive the right to access the intellectual property, or receive
the right to use the intellectual property. The intellectual property licences are granted for software
products, which are subsequently referred to as “SaaS Front Office” and “SaaS Middle Office”. Revenue
generated with SaaS Front Office fees is recognised at a specific point in time because all contractual
obligations are fulfilled, and the customer obtains control of the asset, as soon as the licence key is
transferred to the customer. SaaS Middle Office fees are recognised over time, i.e. the contractual term.
Fees are also charged for the maintenance and servicing (summarized as "Main-tenance") of the
software products, which are realized over the contract term. For this purpose, the transaction price for
maintenance is calculated and allocated according to the "expected cost plus a margin" approach. This
revenue is presented under “Axioma”.
Treasury result from banking business
The treasury result from banking business stems mainly from investing surplus liquidity and from the fair
value measurement of foreign exchange transactions. It also includes income from exchange rate
differences resulting from finance instruments in the banking business. Given the currently prevailing
interest rate anomaly, Deutsche Börse Group also generates interest income from customer balances
held at Deutsche Börse Group (in a negative interest rate environment). Furthermore, this item
comprises interest payments made on customer balances (positive interest rate environment) as well as
cash investments (negative interest rate environment) and fees for providing customer credit lines.
Interest income and interest expenses are calculated, allocated, and realised when due, with the
applicable effective interest rate on a daily basis.
Other operating income
Other operating income is income not attributable to the typical business model of Deutsche Börse
Group; it is therefore not disclosed as part of revenue. Other operating income is usually realised when
all chances and risks have been transferred. Other operating income comprises, for instance, income
from subleasing property, income from exchange rate differences in non-banking business as well as the
reversal of impairments recognised on trade receivables.
Volume-related costs
The “Volume-related costs” item comprises expenses that are directly related to revenue and are directly
dependent on the following items in particular:
◼ The number of certain trade or settlement transaction,
◼ The custody volume or the Global Security Financing volume,
◼ The volume of market data acquired,
◼ The sales commission for the distribution of investments to the distribution partner,
◼ “Revenue-Sharing” agreements or “maker-taker” pricing models.
Volume-related costs are not incurrend if the corresponding revenue is no longer generated.
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Financial statements
Notes | Notes on the consolidated income statement
Further information
Composition of net revenue (part 1)
Eurex (financial derivatives)
Equity index derivatives
Interest rate derivatives
Equity derivatives
OTC Clearing
Margin fees
Infrastructure
Eurex Data
Other
EEX (commodities)
Power derivatives
Power spot
Gas
Annual fees
Technical connection fees
Market Data Services
Other
360T (foreign exchange)
Trading
Other
Xetra (cash equities)
Trading and clearing
Listing
Xetra Data
Regulatory Services
Xetra Infrastructure
1) Previous year adjusted.
Sales revenue
Treasury result from banking
business
2020
€m
600.3
203.4
56.9
50.0
22.6
84.2
62.1
33.5
20191)
€m
2020
€m
2019
€m
534.6
214.0
58.4
41.8
17.0
76.7
62.7
30.2
0
0
0
0
0
0
0
0
83.4
46.3
0
0
0
0
0
0
1,113.0
1,035.4
83.4
46.3
128.0
113.3
1.4
7.7
72.7
54.5
17.0
10.2
7.7
35.6
72.6
55.1
17.0
10.2
6.9
32.9
325.7
308.0
86.7
20.8
107.5
237.3
18.0
113.6
12.7
43.9
425.5
82.8
15.1
97.9
169.7
19.3
119.8
14.6
46.3
369.7
0
0
0
0
0
3.8
5.2
0
0
0
0
0
0
0
0
0
0
0
0
0
0
3.7
11.4
0
0
0
0
0
0
0
0
0
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Notes | Notes on the consolidated income statement
Further information
Composition of net revenue (part 2)
Other operating income
Volume-related costs
Net revenue
2020
€m
20191)
€m
2020
€m
20191)
€m
2020
€m
20191)
€m
0.1
0.1
0.1
0.2
0.1
0.1
– 59.9
– 50.8
– 3.4
– 8.6
– 3.2
– 7.4
22.3
11.7
– 17.4
– 12.3
– 20.6
– 11.0
0
8.7
7.3
0
8.8
6.4
0
– 0.2
– 11.0
– 3.6
0
– 0.2
– 10.7
– 4.1
540.5
200.1
48.4
54.9
85.4
84.0
59.8
37.2
484.0
210.9
51.1
41.2
52.3
76.5
60.8
32.5
18.0
16.3
– 104.1
– 88.7
1,110.3
1,009.3
0.5
0
0
0
0
0
1.6
2.1
0
0.4
0.4
1.0
1.7
6.9
20.4
0
30.0
0
0
0
0
0
0
1.3
1.3
0
0.1
0.1
0.7
1.5
5.4
0
0
– 14.1
– 0.6
– 11.5
0
0
0
– 15.9
– 1.7
– 12.3
0
0
0
– 4.6
– 1.5
115.8
105.1
72.1
43.0
17.0
10.2
7.7
36.4
70.9
42.8
17.0
10.2
6.9
36.4
– 30.8
– 31.4
302.2
289.3
– 4.8
– 1.6
– 6.4
– 35.0
– 0.8
– 27.0
– 0.9
– 0.1
– 5.9
0
81.9
19.6
– 5.9
101.5
76.9
15.2
92.1
– 19.0
– 0.9
– 27.2
– 0.9
0
203.3
151.4
18.9
93.5
32.2
43.8
19.9
98.0
13.7
46.3
7.6
– 63.8
– 48.0
391.7
329.3
Eurex (financial derivatives)
Equity index derivatives
Interest rate derivatives
Equity derivatives
OTC Clearing
margin fees
Infrastructure
Eurex Data
Other
EEX (commodities)
Power derivatives
Power spot
Gas
Annual fees
Technical connection fees
Market Data Services
Other
360T (foreign exchange)
Trading
Other
Xetra (cash equities)
Trading and clearing
Listing
Xetra Data
Regulatory Services
Xetra Infrastructure
1) Previous year adjusted.
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Financial statements
Notes | Notes on the consolidated income statement
Further information
Composition of net revenue (part 3)
Sales revenue
Treasury result from banking
business
20191)
€m
2020
€m
20191)
€m
Clearstream (post-trading)
Custody
Settlement
Net interest income from banking business
Third-party services
GSF Lending services
GSF Collateral management
Connectivity ICSD
Other
IFS (investment fund services)
Custody
Settlement
Connectivity
Funds distribution
Other
Qontigo (index and analytics business)
ETF licenses
Exchange licenses
Other licenses
Axioma
2020
€m
565.6
180.8
0
23.9
54.3
52.9
74.4
47.9
532.3
130.7
0
24.6
62.5
49.9
65.9
39.0
999.8
904.9
92.1
78.6
26.0
101.2
36.7
334.6
39.6
37.8
114.8
85.7
277.9
80.0
58.6
19.0
0
37.1
194.7
43.0
34.4
101.9
27.4
206.7
0
0
0
0
100.8
188.2
0
0
0
0
0
0
0
0
7.3
108.1
1.7
189.9
0
0
0
0
– 0.1
– 0.1
0
0
0
0
0
0
0
0
0
0.1
0.1
0
0
0
0
0
Total
3,584.0
3,117.3
196.6
247.7
Consolidation of internal revenue
– 64.7
– 63.1
0
0
Group
1) Previous year adjusted.
3,519.3
3,054.2
196.6
247.7
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Management report
Financial statements
Notes | Notes on the consolidated income statement
Further information
Composition of net revenue (part 4)
Other operating income
Volume-related costs
Net revenue
2020
€m
20191)
€m
2020
€m
20191)
€m
2020
€m
20191)
€m
Clearstream (post-trading)
Custody
Settlement
Net interest income from
banking business
Third Parties
GSF Lending services
GSF Collateral management
Connectivity ICSD
Other
IFS (investment fund services)
Custody
Settlement
Connectivity
Funds distribution
Other
Qontigo (index and analytics
business)
ETF licenses
Exchange licenses
Other licenses
Axioma
0.2
0.6
0
0
0
0
0
0.8
1.6
0
0
0
0.3
0.1
0.4
0
0
0
1.7
1.7
0.2
– 148.3
– 140.8
0
0
0
0
0
0
1.3
1.5
0
0
0
0
0
0
0
0
0.3
0.1
0.4
– 66.6
– 0.3
– 0.1
– 29.0
– 1.3
– 5.3
– 48.5
0
– 0.3
– 33.4
– 1.0
– 5.7
– 31.4
– 23.9
417.5
114.8
100.5
23.8
25.3
51.6
69.1
24.6
391.7
82.2
188.2
24.3
29.1
48.9
60.2
18.1
– 282.3
– 253.6
827.2
842.7
– 4.7
– 6.6
– 1.4
– 87.1
– 2.3
– 3.3
– 5.0
– 1.1
0
– 2.3
87.4
72.0
24.6
14.4
34.4
– 102.1
– 11.7
232.8
– 4.9
– 3.1
– 9.2
– 14.3
– 31.5
– 4.3
– 2.9
– 8.0
– 1.7
– 16.9
34.7
34.7
105.6
73.1
248.1
76.7
53.6
17.9
0
34.9
183.1
38.7
31.5
94.2
25.8
190.2
Total
54.2
27.2
– 621.0
– 456.2
3,213.8
2,936.0
Consolidation of internal
revenue
– 13.7
– 13.7
78.4
76.8
0
0
Group
40.5
13.5
– 542.6
– 379.4
3,213.8
2,936.0
1) Previous year adjusted.
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Financial statements
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Further information
Composition of treasury result from banking business
Interest income from positive interest environment
Debt financial assets measured at amortised cost
Interest expenses from positive interest environment
Financial liabilities measured at amortised cost
Interest income from negative interest environment
Debt financial assets measured at amortised cost
Interest expenses from negative interest environment
Financial liabilities measured at amortised cost
Net interest income
Result from fair value valuation of foreign currency derivatives
Other currency result
Other result from securities
Total
1) Previous year adjusted.
Other operating income
2020
€m
20191)
€m
64.9
207.7
– 31.3
– 71.7
378.2
242.6
– 256.0
– 186.8
155.8
33.4
7.6
– 0.3
191.8
54.4
1.6
0
196.6
247.7
Other operating income of €40.5 million (2019: €13.5 million) mainly comprises income from
exchange rate differences of€ 6.0 million (2019: €4.6 million), income from services of €1.3 million
(2019: €1.2 million), income from written-off receivables of €1.2 million (2019: €– 0.1 million) and
rental income from subleases (income from operating leases) of €0.7 million (2019: €1.0 million).
There was additional income of €19.8 million from the disposal of the Regulatory Reporting Hub in
2020.
5. Staff costs
Composition of staff costs
Wages and salaries
Social security contributions, retirement and other benefits
Total
2020
€m
682.2
140.7
822.9
2019
€m
622.1
125.7
747.8
Wages and salaries comprise costs associated with the efficiency programme of €36.4 million (2019:
€42.1 million).
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Management report
Financial statements
Notes | Notes on the consolidated income statement
Further information
6. Other operating expenses
Composition of other operating expenses
Costs for IT service providers and other consulting services
IT costs
Non-recoverable input tax
Premises expenses
Insurance premiums, contributions and fees
Advertising and marketing costs
Travel, entertainment and corporate hospitality expenses
Cost of exchange rate differences
Voluntary social benefits
Supervisory Board remuneration
Short-term leases
Miscellaneous
Total
2020
€m
248.2
139.3
40.0
31.8
21.6
15.6
5.8
5.7
4.4
4.1
3.0
26.2
545.8
2019
€m
226.4
125.4
37.8
32.3
13.3
21.9
24.6
5.7
6.4
4.1
2.0
16.7
516.6
Composition of fees paid to the auditor
2020
2019
Statutory audit services
Other assurance or valuation services2)
Tax advisory services
Other services
Total
1) Thereof €– 0.2 million for 2018.
2) Service according to ISAE 3402 and ISAE 3000.
Total
€m
6.1
0.6
0.8
0.2
7.7
Germany
€m
4.2
0.3
0.3
0.1
4.9
Total
€m
4.51)
0.4
0.5
0.2
5.6
Germany
€m
2.6
0.1
0.3
0.1
3.1
Fees paid for “statutory audit services” rendered by KPMG AG Wirtschaftsprüfungsgesellschaft mainly
comprise the audit of the consolidated financial statements according to IFRS, of the annual financial
statements of Deutsche Börse AG according to the Handelsgesetzbuch (HGB, German Commercial Code)
and of the annual financial statements of various subsidiaries according to the respective local GAAP.
This item also includes statutory additions to the audit scope as well as key points of the audit agreed
with the Supervisory Board. Services rendered during the reporting year also included reviews of the
half-yearly financial statement and quarterly statements.
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Financial statements
Notes | Notes on the consolidated income statement
Further information
7. Result from financial investments
“Net income from strategic investments” was renamed “Result from financial investments”, since this is
a more accurate description. The item comprises measurement effects, dividend payments, distributions,
foreign currency translation effects and write-downs on financial investments. Gains and losses on
financial investments at FVPL are recognised on a net basis in the period in which they arise.
Distributions from funds and dividends are recognised in profit or loss when the Group’s right to receive
payments is established and when such dividends are not capital repayments.
Composition of result from financial investments
Result of the equity method measurement of associates
Result of strategic investments measured at fair value through other comprehensive income
(dividends)
Result of financial investments measured at amortised cost
Result of financial investments measured at fair value through profit or loss
Result of derivatives
Result of hedge accounting
Total
2020
€m
21.5
0.3
– 5.3
2.9
5.2
– 0.2
24.3
2019
€m
0.2
0.8
0
5.7
0
0
6.7
In addition to the result of the equity valuation the net income from associates also includes impairment
losses. No impairment loss was recognised in the reporting year (2019: €0.0 million). The increase is
mainly due to the at-equity valuation of Tradegate AG Wertpapierhandelsbank which is based on the
positive business performance in the reporting year.
For changes in financial investments see note 12.
8. Financial result
The financial result comprises interest income and expenses which are not attributable to the banking
business of Deutsche Börse Group, and are therefore not recognised in net revenue. Interest income and
expense are recognised using the effective interest method over the respective financial instrument’s term
to maturity. Interest income is recognised when it is probable that the economic benefits associated with
the transaction will flow to the entity and the income can be measured reliably. Interest expense is
recognised in the period in which it is incurred.
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Financial statements
Notes | Notes on the consolidated income statement
Further information
Composition of financial income
Interest income from financial assets measured at fair value through other comprehensive income
Interest income from financial assets measured at amortised cost
Interest income from financial assets measured at fair value through profit or loss
Interest income on tax refunds
Other interest income and similar income
Total
Composition of financial expense
Interest expense from financial assets measured at amortised cost
Interest expense from financial liabilities measured at amortised cost
Transaction cost of financial liabilities measured at amortised cost
Interest expense on taxes
Interest expense on lease liabilities
Expense of the unwinding of the discount on pension provisions
Other interest expense
Total
9. Income tax expense
2020
€m
0.1
0.4
0.1
25.3
0.1
26.0
2020
€m
3.9
49.7
3.4
35.8
5.5
1.8
2.8
2019
€m
0
1.3
0.3
7.0
2.1
10.7
2019
€m
2.8
48.2
2.2
3.1
5.2
2.8
0.2
102.9
64.4
Deutsche Börse Group is subject to the tax laws of those countries in which it operates and generates
income. If it is probable that the tax authorities will not accept the disclosed amounts or the legal
assessments on which the Group’s tax declarations are based (uncertain tax positions), tax liabilities are
recognised based on the best possible estimate of expected cash outflows. Tax assets are recognised if it
is considered likely that they will be realised. The discretion in assessing uncertain tax positions is
reexercised if there is a change in the underlying facts or their legal assessment (e.g. change in case
law).
Deferred tax assets and liabilities are computed using the balance sheet liability approach. The deferred
tax calculation is based on temporary differences between the carrying amounts of assets and liabilities
in the IFRS financial statements and their tax base that will lead to a future tax liability or benefit when
assets are used or sold or liabilities are settled. These differences are used to calculate deferred tax
assets or liabilities.
The deferred tax assets or liabilities are measured using the tax rates that are currently expected to apply
when the temporary differences reverse, based on tax rates that have been enacted or substantively
enacted by the reporting date. Deferred tax assets are recognised for the unused tax loss carryforwards
only to the extent that it is probable that future taxable profit will be available. Deferred tax assets and
deferred tax liabilities are offset where a legally enforceable right to set off current tax assets against
current tax liabilities exists, and the deferred tax assets and deferred tax liabilities relate to income taxes
levied by the same taxation authority.
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Management report
Financial statements
Notes | Notes on the consolidated income statement
Further information
Composition of income tax expense
Current income tax expense/(-income)
for the current year
for previous years
Deferred income tax expense/(-income)
due to temporary differences
due to tax loss carryforwards
due to changes in tax legislation and/or tax rates
for previous years
Total
Allocation of income tax expense to Germany and foreign jurisdictions
Current income tax expense/(-income)
Germany
Foreign jurisdictions
Deferred income tax expense/(-income)
Germany
Foreign jurisdictions
Total
2020
€m
414.5
425.5
– 11.0
– 11.9
– 25.2
0.3
0
13.0
402.6
2020
€m
414.5
310.4
104.1
– 11.9
– 9.9
– 2.0
402.6
2019
€m
378.0
384.4
– 6.4
– 15.4
– 22.7
– 0.4
7.7
0
362.6
2019
€m
378.0
245.4
132.6
– 15.4
– 6.4
– 9.0
362.6
Tax rates of 27.4 to 31.9 per cent (2019: 27.4 to 31.9 per cent) were used in the reporting period to
calculate income taxes for the German Group companies. These reflect trade income tax at rates of
11.6 to 16.1 per cent (2019: 11.6 to 16.1 per cent), corporation tax of 15 per cent (2019: 15 per
cent) and the 5.5 per cent solidarity surcharge (2019: 5.5 per cent) on corporation tax.
A tax rate of 24.9 per cent (2019: 24.9 per cent) was used for the Group companies in Luxembourg.
This includes trade tax at a rate of 6.7 per cent (2019: 6.7 per cent) and corporation tax at 18.2 per
cent (2019: 18.2 per cent).
Tax rates of 10.0 to 34.6 per cent (2019: 10.0 to 34.6 per cent) were applied to the Group companies
in the remaining countries; see note 33.
Current income tax expense was reduced by €0.3 million in the reporting year by utilization of previously
unrecognised tax loss carryforwards (2019: nil). Deferred tax income of €2.4 million resulted from
previously unrecognised tax losses (2019: nil). As in the previous year, there were no effects resulting
from changes of the impairment of deductible temporary differences.
The following table shows the carrying amounts of deferred tax assets and liabilities as at the reporting
date by line item or loss carryforward:
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Executive and Supervisory Boards
Management report
Financial statements
Notes | Notes on the consolidated income statement
Further information
Composition of deferred taxes
Intangible assets
Internally developed software
Other
Financial assets
Other assets
Provisions for pensions and other employee benefits
Other provisions
Liabilities
Tax loss carryforwards
Deferred taxes (before netting)
thereof recognised in profit and loss
thereof recognised in other comprehensive income1)
Deferred taxes set off
Total
Deferred tax assets
Deferred tax liabilities
31.12.2020
31.12.2019
31.12.2020
31.12.2019
€m
86.0
30.0
56.0
1.7
7.4
88.1
18.1
40.8
15.6
257.7
190.4
67.3
– 96.0
161.7
€m
63.8
47.4
16.4
1.2
3.1
78.6
14.7
18.3
15.9
195.6
135.4
60.2
– 71.2
124.4
€m
€m
– 254.1
– 265.8
– 32.5
– 32.9
– 221.6
– 232.9
– 13.8
– 16.3
– 17.7
– 0.1
– 10.7
0
– 312.7
– 303.4
– 9.3
96.0
– 5.2
– 8.4
– 15.1
– 0.1
– 2.9
0
– 297.5
– 295.6
– 1.9
71.2
– 216.7
– 226.3
1) See note 14 for further information on deferred taxes recognised in other comprehensive income.
Short-term elements of deferred taxes are recognised in non-current assets and liabilities, in line with
IAS 1 “Presentation of Financial Statements”.
At the end of the reporting period, accumulated unused tax losses for which no deferred tax assets were
recognised amounted to €27.2 million (2019: €39.5m). These unused tax loss carryforwards are
entirely attributed to other jurisdictions (2019: Germany €4.6 Mio. €, other jurisdictions €34.9m).
The losses can be carried forward indefinitely in Germany subject to the minimum taxation rules. In the
US, losses may be carried forward for a maximum period of 20 years, provided they were incurred
before 1 January 2018. In accordance with the latest tax reform in the US, adopted at the end of
December 2017, losses incurred after 31 December 2017 may be carried forward indefinitely, taking
into account newly introduced minimum taxation rules. In all other countries, losses can be carried
forward indefinitely.
There were no unrecognised deferred tax liabilities on future dividends of subsidiaries and associates or
on gains from the disposal of subsidiaries and associates in the reporting period (2019: nil).
202
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Executive and Supervisory Boards
Management report
Financial statements
Notes | Notes on the consolidated income statement
Further information
Reconciliation from expected to reported tax expense
Earnings before tax (EBT)
Expected tax expense
Effects of different tax rates
Effects of non-deductible expenses
Effects of tax-exempt income
Tax effects from loss carryforwards
Effects from changes in tax rates
Effects from intra-group restructuring
Other
Income tax expense arising from current year
Income taxes for previous years
Income tax expense
2020
€m
20191)
€m
1,528.2
1,398.4
397.3
– 15.2
15.5
– 1.3
0.9
0
1.5
2.0
400.7
1.9
402.6
363.6
– 12.3
10.4
– 1.8
0.3
7.7
– 5.0
6.1
369.0
– 6.4
362.6
1) For a more accurate presentation, tax income of €10.0 million has been reclassified from „effects of tax-exempt income“ to „other“.
To determine the expected tax expense, earnings before tax have been multiplied by the composite tax
rate of 26 per cent assumed for 2020 (2019: 26 per cent).
As at 31 December, the reported tax rate was 26.3 per cent (2019: 25.9 per cent).
203
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Management report
Financial statements
Notes | Notes on the consolidated statement of financial position
Further information
Notes on the consolidated statement of financial
position
10. Intangible assets
Recognition and measurement
Capitalised development costs are amortised from the date of first use of the software using the straight-
line method over the asset’s expected useful life. The useful life of internally developed software is
generally assumed to be five years; a useful life of seven years is used as the basis in the case of newly
developed trading platforms and clearing or settlement systems, and for certain upgrades to these
systems.
Purchased software is generally amortised based on the projected useful life. The amortisation period for
intangible assets with finite useful lives is reviewed at a minimum at the end of each financial year. If
the expected useful life of an asset differs from previous estimates, the amortisation period is adjusted
accordingly.
The other intangible assets were largely acquired within the context of business combinations and refer
to exchange licences, trade names and customer relationships. The acquisition costs correspond to the
fair values as at the acquisition date. Depending on the relevant acquisition transaction, the expected
useful life is 5 years for trade names with finite useful lives, 4 to 24 years for participant and customer
relationships, and 2 to 20 years for other intangible assets.
Exchange licences as well as certain trade names have no finite useful lives, and, in addition, there is an
intention to maintain the exchange licences as part of the general business strategy; therefore, an
indefinite useful life is assumed.
Intangible assets are derecognised on disposal or when no further economic benefits are expected to
flow from them.
Impairment tests
At each reporting date, the Group assesses whether there are any indications that an intangible asset
may be impaired. If this is the case, the carrying amount is compared with the recoverable amount (the
higher of the value in use and fair value less costs of disposal) to determine the amount of any potential
impairment.
Value in use is estimated on the basis of the discounted estimated future cash flows from continuing use
of the asset and from its ultimate disposal, before taxes. For this purpose, discount rates are estimated
based on the prevailing pre-tax weighted average cost of capital. If no recoverable amount can be
determined for an asset, the recoverable amount of the cash-generating unit (CGU) to which the asset
can be allocated is determined.
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Management report
Financial statements
Notes | Notes on the consolidated statement of financial position
Further information
Irrespective of any indications of impairment, intangible assets with indefinite useful lives and intangible
assets not yet available for use must be tested for impairment at least once a year. Impairment tests for
(groups of) CGUs with allocated goodwill are carried out on 30 September every financial year. If the
estimated recoverable amount of the asset or CGU is lower than the respective carrying amount, an
impairment loss is recognised and the net carrying amount of the asset or CGU, respectively, is reduced
to its estimated recoverable amount.
Additional impairment testing was carried out for intangible assets as of 30 June 2020 in response to
the Covid-19 pandemic. It did not identify any impairment. At the acquisition date, goodwill is allocated
to the CGU, or groups of CGUs, that is/are expected to create synergies from the relevant acquisition. If
changes arise in the structure of CGUs, for example through a new segmentation, goodwill is allocated
taking into account the relative fair values of the newly defined CGUs. Irrespective of any indications of
impairment, these items must be tested for impairment at least annually at the lowest level of
impairment at which Deutsche Börse Group monitors the respective goodwill. An impairment loss is
recognised if the carrying amount of the CGU, or groups of CGUs, to which goodwill is allocated
(including the carrying amount of that goodwill) is higher than the recoverable amount of this group of
assets. The impairment loss is first allocated to the goodwill, then to the other assets in proportion to
their carrying amounts.
The recoverable amount of the (groups of) CGUs was determined based on the fair value less costs to
sell. The value in use was only determined if the fair value less costs to sell did not exceed the carrying
amount. Given that no active market was available for the (groups of) CGUs, the determination of fair
values less costs to sell was based on the discounted cash flow method (level 3 input factors). The
detailed planning period covers a respective time period of five years; for (groups of) CGUs, which have
been allocated an asset with an indefinite useful life, such time period ends in perpetuity. Individual
costs of capital are determined for each (group of) CGU(s), for the purpose of discounting projected cash
flows. These capital costs are based on data incorporating beta factors, borrowing costs, as well as the
capital structure of the respective peer group. Pricing, trading volumes, assets under custody, market
share assumptions or general business development assumptions are based on past experience or
market research. Other key assumptions are mainly based on external factors and generally correspond
to internal management planning. Significant macroeconomic indicators include, for instance, equity
index levels, volatility of equity indices, as well as interest rates, exchange rates, GDP growth,
unemployment levels and government debt. When calculating value in use, the projections are adjusted
for the effects of future restructurings and performance investments, if appropriate.
At each reporting date, the Group assesses whether there are any indications that an impairment
recognised for non-current assets in previous years (except goodwill) no longer applies. If this is the
case, the carrying amount of the asset is increased and the difference is recognised in profit or loss. The
maximum amount of this reversal is limited to the carrying amount that would have resulted if no
impairment loss had been recognised in previous periods. Deutsche Börse Group does not reverse any
goodwill impairments.
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Executive and Supervisory Boards
Management report
Financial statements
Notes | Notes on the consolidated statement of financial position
Further information
Intangible assets
Purchased
software
Internally
developed
software
Goodwill
Payments
on account
and
construction
in progress
Other
intangible
assets
1
)
€m
€m
€m
€m
€m
Total
€m
Historical cost as at 1 Jan 2019
188.9
1,076.1
2,865.6
60.5
1,079.1
5,270.2
Acquisitions from business combinations
Additions
Disposals
Reclassifications
Exchange rate differences
95.5
15.7
– 2.3
0
– 1.0
53.0
0
17.9
0.2
0
609.3
– 4.4
0
Historical cost as at 31 Dec 2019
296.8
1,147.2
3,470.5
102.4
1,199.8
6,216.7
0
0
0
550.2
4.3
0
0
0
15.2
44.6
0
– 17.9
0
0
64.8
– 0.2
110.4
9.7
0
– 0.1
0.7
830.4
123.0
– 2.3
– 0.1
– 4.5
271.2
837.2
0
0.8
0
4.3
134.3
– 3.6
0.3
– 23.8
– 0.1
– 67.4
– 1.4
– 19.4
– 98.7
Acquisitions through business combinations
15.8
Adjustment of previous year Goodwill
Additions
Disposals
Reclassifications
Exchange rate differences
0
13.9
– 3.3
1.1
– 8.6
0
0
54.8
– 0.1
23.1
– 1.9
Historical cost as at 31 Dec 2020
315.7
1,223.1
3,957.6
141.8
1,452.3
7,090.5
Amortisation and impairment losses as at
1 Jan 2019
153.1
790.9
Amortisation
Impairment losses
Disposals
Reclassifications
Exchange rate differences
20.3
0
– 2.3
0
– 0.2
77.7
0
0
0
0
Amortisation and impairment losses as at
31 Dec 2019
170.9
868.6
Amortisation
Impairment losses
Disposals
Reclassifications
Exchange rate differences
Amortisation and impairment losses as at
31 Dec 2020
30.5
0
– 2.2
0
86.3
2.6
0
0
– 1.2
– 0.5
198.0
957.0
0
0
0
0
0
0
0
0
0
0
0
0
0
8.2
126.4
1,078.6
0
1.8
0
0
– 0.1
32.5
130.5
0
0
0
0
1.8
– 2.3
0
– 0.3
9.9
158.9
1,208.3
0
5.6
0
0
0
38.5
155.3
0
0
0
8.2
– 2.2
0
– 0.5
– 2.2
15.5
196.9
1,367.4
Carrying amount as at 31 Dec 2019
Carrying amount as at 31 Dec 2020
125.9
117.7
278.6
3,470.5
92.5
1,040.9
5,008.4
266.1
3,957.6
126.3
1,255.4
5,723.2
206
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Executive and Supervisory Boards
Management report
Financial statements
Notes | Notes on the consolidated statement of financial position
Further information
Material intangible assets
Customer Relationship Clearstream Funds Centre
Customer Relationship 360T
Carrying amount as of
Remaining amortisation period as at
31 Dec 2020
31 Dec 2019
31 Dec 2020
€m
237.1
179.7
€m
n/a
189.8
years
19.8
17.8
31 Dec 2019
years
n/a
18.8
Software, payments on account and software in development
Deutsche Börse Group recognises research costs as expenses in the period in which they are incurred.
Development costs for internally developed intangible assets are only capitalised when the definition and
recognition criteria for intangible assets according to IAS 38 are met, and development costs can be
separated from research costs.
Development costs that have to be capitalised include direct labour costs, costs of purchased services
and workplace costs, including proportionate overheads that can be directly attributed to the preparation
of the respective asset for use, such as costs for the software development environment. Development
costs that do not meet the requirements for capitalisation are recognised through profit or loss. Interest
expense that cannot be allocated directly to one of the development projects is recognised through profit
or loss in the reporting period.
Total development costs came to €158.2 million in 2020 (2019: €142.2 million), of which €104.0
million was capitalised (2019: €97.5 million).
The impairments tests carried out at Deutsche Börse Group in 2020 resulted in impairment losses
totalling €8.2 million (2020: €1.8 million). They are shown in the item “Depreciation, amortisation and
impairment losses” and relate to the following assets:
▪ An impairment loss of €2.6 million (recoverable amount: negative) in the fourth quarter 2020
relates to the SecLending system for clearing CCP securities lending transactions. Upcoming
technological investments exceed the expected revenues. The providing of clearing services for
securities lending transactions is being discontinued as a result.
▪ Another impairment loss of €1.0 million (recoverable amount: negative) in the fourth quarter 2020
was recognised on C7 software and relates to a decision that Eurex Crypto Futures were not
introduced in 2020.
▪ Another impairment loss in the fourth quarter of €0.4 million (recoverable amount: negative) relates
to capitalised development costs for planned new asset class from Cascade, which was intended to
offer the settlement of Cascade-registered shares in the investment funds business, too. The
impairment loss is the result of investigations which showed that there is a smaller market need for
this product due to regulatory changes.
▪ After Regulatory Services was carved out, Regulatory Services GmbH was sold to Trax NL B.V. (a
wholly owned subsidiary of MarketAxess Holdings Inc.) on 30 November 2020. The disposal of
Regulatory Services GmbH and the loss of its clients was the reason for the impairment loss of €4.2
million on the IT platform RRH 2.0 (recoverable amount: negative).
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Management report
Financial statements
Notes | Notes on the consolidated statement of financial position
Further information
The recoverable amount was measured at fair value less costs to sell, using a discounted cash flow
model (level 3 inputs).
Goodwill and other intangible assets from business combinations
Changes in goodwill classified by (groups of) CGUs
Eurex
Clear-
stream
Qontigo
€m
€m
€m
IFS
€m
360T
EEX
€m
€m
Xetra
€m
GSF
€m
Data
€m
Total
€m
Balance as at 1 Jan 2019
1,293.5
969.1
18.5 56.6
244.1 115.6
6.7
142.1 19.4 2,865.6
Acquisitions through business
combinations
0
0
596.4 10.0
0
2.9
Exchange rate differences
0.1
– 0.1
– 6.3 – 0.3
1.1
1.0
0
0
0
0
609.3
0
0.1
– 4.4
Balance as at 31 Dec 2019
1,293.6
969.0
608.6 66.3
245.2 119.5
6.7
142.1 19.5 3,470.5
17.0
142.1
0
0
0
0
2.5 – 142.1 – 19.5
0
Reallocation due to change in
reporting structure
Acquisitions through business
combinations
Adjustment of previous year
Goodwill
64.1
0
0 484.9
0
1.2
0
0
4.3
0
0
0
0
0
Exchange rate differences
– 2.3
0
– 53.6 – 1.5
– 5.0 – 4.9
– 0.1
Balance as at 31 Dec 2020
1,372.4 1,111.1
559.3 549.7
240.2 115.8
9.1
Changes in other intangible assets by category
0
0
550.2
0
0
4.3
0
0
0
– 67.4
0 3,957.6
Member and
customer
relationships
Miscellaneous
intangible
assets
Balance as at 1 Jan 2019
Acquisitions through
business combinations
Additions
Amortisation
Exchange rate differences
Reclassifications
Balance as at 31 Dec 2019
Acquisitions through
business combinations
Additions
Amortisation
Exchange rate differences
Reclassifications
Balance as at 31 Dec 2020
Exchange
licences
€m
24.0
0
0
0
0.5
0
24.5
0
0
0
– 2.1
0
22.4
Trade
names
€m
460.0
65.4
0
– 0.1
– 0.6
0
524.7
0
0
– 0.4
– 6.2
0
€m
464.7
44.0
8.5
– 31.2
0.8
0
486.8
270.3
0.3
– 36.5
– 10.5
0
518.1
710.4
€m
4.0
1.0
1.2
– 1.2
0
– 0.1
4.9
0.9
0.5
– 1.6
– 0.1
0
4.6
Total
€m
952.7
110.4
9.7
– 32.5
0.7
– 0.1
1,040.9
271.2
0.8
– 38.5
– 19.0
0
1,255.4
208
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Management report
Financial statements
Notes | Notes on the consolidated statement of financial position
Further information
Key assumptions used for impairment tests in 2020
(Group of) CGUs
Allocated
book
value
Mio. €
Risk-free
interest rate
%
Market risk
premium
%
Discount
rate
Perpetuity
growth
rate Net revenue
%
%
%
Operating
costs
%
CAGR1)
Goodwill
Eurex2)
Clearstream2)
Qontigo
360T
EEX
IFS
Xetra
Trade names and
exchange licences
STOXX
Axioma
Nodal
360T
EEX
360TGTX
Structured Products
1,310.0
1,111.1
585.5
551.8
242.7
118.2
9.1
– 0.2
– 0.2
– 0.2
– 0.2
– 0.2
– 0.2
– 0.2
420.0
– 0.3
58.7
26.1
19.9
13.5
1.6
0.2
1.4
1.4
– 0.3
– 0.3
0.9
– 0.3
7.8
7.8
7.8
7.8
7.8
7.8
7.8
7.8
6.3
6.3
7.8
7.8
6.3
7.8
6.2
7.6
7.5
7.5
7.7
7.1
7.5
7.4
7.8
7.6
7.7
7.0
7.7
7.4
1.5
1.0
1.5
1.5
2.0
1.5
1.0
1.5
2.5
1.5
2.0
1.5
2.0
1.0
3.9
2.7
12.6
10.4
9.7
6.9
5.6
7.9
15.8
23.8
8.7
6.0
17.8
– 2.5
1.4
1.9
6.9
2.8
5.0
2.1
8.4
5.9
4.7
6.8
7.1
4.3
11.0
1.5
1) CAGR = compound annual growth rate
2) The CGU Data was allocated to Eurex and Xetra / The CGU GSF was allocated to Clearstream
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Financial statements
Notes | Notes on the consolidated statement of financial position
Further information
Key assumptions used for impairment tests in 2019
Book
value
Mio. €
Risk-free
interest rate
%
Market risk
premium
%
Discount
rate
Perpetuity
growth
rate Net revenue
%
%
%
Operating
costs
%
CAGR1)
1,293.6
969.0
608.5
245.2
142.1
119.5
66.3
19.5
6.7
420.0
64.3
28.6
19.9
14.3
1.7
0.2
– 0.2
– 0.2
– 0.2
– 0.2
– 0.2
– 0.2
– 0.2
– 0.2
– 0.2
0.2
2.3
2.3
0.2
0.2
2.3
0.2
7.5
7.5
7.5
7.5
7.5
7.5
7.5
7.5
7.5
7.5
6.0
6.0
7.5
7.5
6.0
7.5
5.8
7.0
7.4
7.3
8.1
6.7
7.8
7.6
6.2
7.8
8.5
8.0
7.7
7.0
8.6
7.0
1.0
1.0
1.5
2.0
1.5
1.5
1.5
1.5
1.0
1.5
1.5
1.5
2.0
1.5
2.0
1.0
4.9
3.1
13.2
11.1
4.6
8.0
9.9
3.6
2.8
8.3
26.6
9.0
8.7
5.6
21.3
2.9
3.9
3.3
20.7
6.7
2.6
6.0
5.5
5.5
3.1
3.4
16.9
7.2
4.5
4.5
12.0
2.5
Goodwill
Eurex
Clearstream
Qontigo
360T
GSF
EEX
IFS
Data
Xetra
Trade names and
exchange licences
STOXX
Axioma
Nodal
360T Core
EEX Core
360TGTX
Structured Products
1) CAGR = compound annual growth rate
Even in case of a reasonably possible change of the parameters, none of the above-mentioned CGUs, or
groups of CGUs, would be impaired.
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Financial statements
Notes | Notes on the consolidated statement of financial position
Further information
11. Property, plant and equipment
Measurement of purchased property, plant and equipment
Depreciable items of property, plant and equipment are carried at cost less cumulative
depreciation. The straight-line depreciation method is used. The carrying amount is immediately
written down to its recoverable amount if the carrying amount is higher than its recoverable
amount. Costs of an item of property, plant and equipment comprise all costs directly attributable
to the production process, as well as an appropriate proportion of production overheads. No
borrowing costs were recognised in the reporting period and in the previous year as they could not
be directly allocated to any particular development project. If it is probable that the future economic
benefits associated with an item of property, plant and equipment will flow to the Group and the
cost of the asset in question can be reliably determined, expenditure subsequent to acquisition is
added to the carrying amount of the asset as incurred. The carrying amounts of any parts of an
asset that have been replaced are derecognised. Repair and maintenance costs are expensed as
incurred.
Useful life of property, plant and equipment
IT hardware
Operating and office equipment
Leasehold improvements
Measurement of right-of-use assets
Depreciation period
3 to 5 years
5 to 25 years
Based on lease term
Deutsche Börse Group leases a large number of different assets. This includes mainly buildings and
passenger vehicles. Right-of-use assets are measured at cost. Any accumulated depreciation and
impairment amounts are deducted from the cost of right-of-use assets as part of subsequent
measurement. This does not apply to short-term leases with a term of not more than twelve months and
leases for low-value assets. Expenses in the reporting year resulting from the above-mentioned short-
term and low-value assets are reported in other operating expenses.
Useful life of property, plant and equipment
Right-of-use ̶ land and buildings
Right-of-use ̶ IT hardware, operating and office equipment as well as carpool
Depreciation period
Based on lease term
Based on lease term
As a lessor in the case of an operating lease, the Group presents the leased asset as an item of property,
plant and equipment and measures such asset at amortised cost. The lease instalments received during
the period are shown under other operating income.
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Financial statements
Notes | Notes on the consolidated statement of financial position
Further information
Property, plant and equipment (incl. Right-of-use assets)
Land and
buildings
(right-of-
use)
Fixtures
and
fittings
IT hardware, operating and office
equipment as well as carpool
Right-of-use
Purchased
€m
Advance
payments
made and
construction
in progress
Total
Total
€m
€m
€m
Historical costs as at 1 Jan 2019
258.3
83.5
Acquisitions through business
combinations
10.2
1.5
€m
€m
€m
4.5
3.0
271.1
275.6
14.8
632.2
0.8
3.8
0
15.5
Additions
Disposals
Reclassifications
Exchange rate differences
Additions
Disposals
Reclassifications
Exchange rate differences
Historical costs as at 31 Dec 2019
389.1
77.5
Acquisitions through business
combinations
3.1
0
120.7
9.7
2.3
44.0
46.3
8.1
184.8
0
0
– 0.1
– 24.5
7.1
0.2
0
0
0
9.8
0
– 12.6
– 12.6
– 0.3
– 37.4
– 0.2
– 0.2
– 6.8
0.1
0.1
0
0.1
0.2
303.2
313.0
15.8
795.4
0.3
0.3
0.5
3.9
70.3
13.1
3.0
43.4
46.4
4.7
134.5
– 0.7
– 3.1
0
9.7
– 2.3
– 0.6
0
0
– 0.2
12.6
– 6.3
– 6.3
– 0.9
– 11.0
3.1
3.1
– 13.1
– 0.5
– 0.7
0
– 0.3
– 3.6
343.2
355.8
7.0
918.9
0
52.2
0
186.3
186.3
0
238.5
Historical costs as at 31 Dec 2020
459.5
96.6
Depreciation and impairment losses
as at 1 Jan 2019
Amortisation
Disposals
Exchange rate differences
Depreciation and impairment losses
as at 31 Dec 2019
Amortisation
Disposals
42.5
7.8
0
– 22.5
0.1
0.2
42.6
37.7
48.5
9.2
– 0.4
– 2.5
2.7
0
0.1
2.8
4.2
0
40.9
43.6
– 12.3
– 12.3
– 0.6
– 0.5
214.3
217.1
39.0
43.2
– 5.8
– 5.8
Exchange rate differences
– 0.4
– 0.3
– 0.1
– 0.3
– 0.4
Depreciation and impairment losses
as at 31 Dec 2020
90.3
44.1
6.9
247.2
254.1
0
0
0
0
0
0
0
0
93.9
– 34.8
– 0.2
297.4
100.9
– 8.7
– 1.1
388.5
Carrying amount as at 31 Dec 2019
346.5
39.8
Carrying amount as at 31 Dec 2020
369.2
52.5
7.0
5.7
88.9
95.9
15.8
498.0
96.0
101.7
7.0
530.4
The average remaining term of leases is 16.9 years.
The remaining term of the material sub-lease is two years; it is then renewed automatically for an
indefinite period. Both parties can terminate the lease at the end of the remaining term by giving notice
of six months.
For details regarding the corresponding lease liabilities, please see note 12.
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Executive and Supervisory Boards
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Financial statements
Notes | Notes on the consolidated statement of financial position
Further information
12. Financial instruments
Financial assets
Recognition and derecognition
Financial assets are recognised when the Group or one of its companies becomes party to a financial
instrument. Regular way purchases and sales of financial assets are generally recognised and
derecognised at the trade date. Purchases and sales of debt instruments classified as “at amortised cost”
and of equities eligible for clearing via the central counterparties (CCPs) of Deutsche Börse Group are
recognised and derecognised at the settlement date. Financial assets are derecognised when the
contractual rights to the cash flows expire or when the company transfers these rights in a transaction
that transfers substantially all risks and rewards of ownership of the financial assets.
Clearstream Banking S.A. acts as a principal in securities borrowing and lending transactions in the
context of the ASLplus securities lending system and is an intermediate between lender and borrower
without becoming a contracting party from an economic perspective. Consequently, these transactions
are not recognised in the consolidated balance sheet.
Initial measurement and classification
Financial assets are first recognised at fair value. For financial assets not measured at fair value through
profit or loss the recognised amount also includes transaction costs that can be allocated directly to the
acquisition of this asset. Transaction costs of financial assets at fair value through profit or loss are
expensed.
Financial assets are classified at the acquisition date, from which subsequent measurement is derived.
Deutsche Börse Group allocates its financial assets to the following measurement categories:
◼ At fair value (either at “fair value through other comprehensive income” (FVOCI) or “fair value through
profit or loss” (FVPL))
◼ At amortised cost (aAC)
Debt instruments are allocated on the basis of the business model for managing the financial assets and
the contractual cash flow characteristics. Debt instruments are only reclassified if the business model for
managing them is changed. Deutsche Börse Group does not make use of the option to designate debt
instruments as at fair value through profit or loss on initial recognition (fair value option).
The allocation of investments in equity securities held for trading depends on whether the option of
designating the corresponding financial instruments as at fair value through other comprehensive income
(FVOCI option) is used on initial recognition. Each individual equity instrument can be allocated
separately and may not be changed in subsequent periods.
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Financial statements
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Further information
Subsequent measurement of debt instruments
Deutsche Börse Group allocates each debt instrument to one of the following categories:
◼ Amortised cost (aAC): Assets allocated to the “hold” business model and whose cash flows consist of
solely payments of principal and interest are measured at amortised cost. Interest income from these
financial assets is measured using the effective interest method. Gains and losses from derecognition,
impairment and exchange rate movements are recognised through profit or loss. Measurement effects
are shown in banking business or non-banking business depending on how the financial assets are
allocated. For financial assets from banking business all measurement effects are shown in the treasury
result from banking business. Interest income from the non-banking business are shown in the
financial result. All other effects of non-banking business are presented in result from financial
investments. All effects relating to the measurement of trade receivables are shown in other operating
income and expenses.
◼ Fair value through other comprehensive income (FVOCI): Investments in debt instruments allocated
to the “hold and sell” business model and whose cash flows consist solely of payments of principal and
interest are measured at fair value through other comprehensive income. Impairments on these debt
instruments are recognised in profit or loss in the result from financial investments. On disposal of
these debt instruments the cumulative gains or losses in the revaluation reserve are recycled to profit or
loss in the result from financial investments. Interest income from fixed income securities in this
category are shown in the financial result.
◼ Fair value through profit or loss (FVPL): Financial assets that do not meet the criteria for
measurement at amortised cost or at FVOCI, are measured at FVPL and their measurement effects are
shown in result from financial investments. Distributions from fund interests are also shown in result
from financial investments. Interest income from fixed income securities in this category are shown in
the financial result.
Subsequent measurement of equity instruments
Equity instruments are always subsequently measured at fair value. Since Deutsche Börse Group has
used the irrevocable FVOCI option for all equity instruments as of the reporting date, gains and losses
are recognised in other comprehensive income. When the item is derecognised the gains and losses are
not recycled through profit or loss, but reclassified to retained earnings. Dividends from these financial
investments are shown in net income from financial investments.
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Financial statements
Notes | Notes on the consolidated statement of financial position
Further information
Impairment
As a rule, any impairment for expected credit losses for debt instruments reported at amortised cost and
at fair value through other comprehensive income is determined using the three-stage impairment model
in IFRS 9. The losses represent a forward-looking measurement of future losses that are generally
subject to estimates.
Stage 1: The impairment upon initial recognition is measured on the basis of the expected losses for the
next twelve months.
Stage 2: If a financial asset's credit risk has increased significantly, the expected credit loss is
determined over the entire term. A significant increase in credit risk is determined individually using
internal ratings.
Stage 3: Credit-impaired financial assets are allocated to Stage 3 and the impairment is based on the ful
lifetime expected credit losses. This is the case if there are observable data of significant financial
difficulties and there is a high risk of default, even if the definition of a default has not yet been met.
If the credit risk for debt instruments at amortised cost and at fair value through profit or loss is low in
absolute terms as at the reporting date, they remain in Stage 1 even if the default risk has increased.
Deutsche Börse Group has identified the following two triggers to identify an event of default and which
cause a transfer to stage 3 accordingly:
Legal default event: a contractual partner is unable to fulfil its contractual obligation according to an
agreement with Deutsche Börse Group due to insolvency/bankruptcy.
Contractual default event: a contractual partner is unable or unwilling to fulfil, in a timely manner, one
or more of its scheduled contractual obligations according to an agreement with Deutsche Börse Group.
The non-fulfilment of the contractual obligation could potentially result in a financial loss for Deutsche
Börse Group.
Within Deutsche Börse Group, the expected credit losses for trade receivables are measured based on
the simplified approach, which requires lifetime expected losses to be recognised from initial recognition
of a receivable. For trade receivables, a default is assumed for amounts which are overdue for more than
360 days.
Financial Liabilities
Recognition and derecognition
Financial liabilities are recognised when a Group company becomes a party to the instrument.
Purchases and sales of equities via the central counterparty Eurex Clearing AG are recognised at the
settlement date analogous to financial assets. Financial liabilities are derecognised when the contractual
obligation has been extinguished because it has been discharged or cancelled or has expired.
Financial liabilities measured at amortised cost
Financial liabilities not held for trading are generally accounted for at amortised cost. The borrowing
costs associated with the placement of financial liabilities are included in the carrying amount and
accounted for using the effective interest method if they are directly attributable. Discounts are amortised
over the term of the liabilities using the effective interest method. Liabilities to non-controlling
shareholders for the acquisition of non-controlling shares settled in cash or another financial asset are
recognised at the present value of the future purchase price. Subsequent measurement recognises
through profit or loss the effect on present value of accrued interest on the financial obligation and all
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Financial statements
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Further information
measurement changes in the obligations. The equity interest attributable to a non-controlling shareholder
underlying the transaction is accounted for as if it had already been acquired at the time of the
transaction.
Financial liabilities measured at fair value through profit or loss
Contingent purchase payments recognised by the purchaser of a business combination in accordance
with IFRS 3 are not measured at amortised cost. The resulting financial liabilities are recognised at fair
value through other profit or loss. With a contingent purchase price component the purchaser is obliged
to transfer additional assets or shares to the seller if certain conditions are met. Subsequent
measurement is at fair value through profit or loss.
Deutsche Börse Group does not make use of the option to designate financial liabilities at fair value
through profit or loss upon initial recognition (fair value option).
Deutsche Börse Group’s exposure to various risks associated with the financial instruments is discussed
in note 23. The maximum exposure to credit risk at the end of the reporting period is the carrying
amount of each class of financial assets mentioned above.
Presentation and netting of financial assets and liabilities
Financial assets and liabilities in the statement of financial position are divided into non-current and
current. They are presented as non-current assets if the remaining term is more than twelve months as
at the reporting date. They are presented as current assets if the remaining term is less than twelve
months.
Financial assets and liabilities are offset and only the net amount is presented in the consolidated
balance sheet when a Group company currently has a legally enforceable right to offset the recognised
amounts and intends either to settle on a net basis or to realise the asset and settle the liability
simultaneously.
Derivative financial instruments and hedge accounting
Derivatives are initially recognised at fair value at the time of the derivative contract. They are only used
for hedging and not as a speculative investment. Where derivatives do not meet the hedge accounting
criteria, they are classified as “held for trading” for accounting purposes and are remeasured at the end
of each reporting period at fair value through profit or loss. Gains and losses from the subsequent
measurement are either recognised in the treasury result from banking business or in result from
financial investments.
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Executive and Supervisory Boards
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Financial statements
Notes | Notes on the consolidated statement of financial position
Further information
Deutsche Börse Group uses foreign exchange derivatives as hedging instruments to hedge existing or
expected transactions against foreign exchange risks. When a hedging transaction takes place the
economic relationship between the hedging instrument and the hedged item is documented in
accordance with the statutory requirements.
Cash flow hedges that qualify for hedge accounting
The effective portion of changes in the fair value of derivatives designated as cash flow hedges is shown
in the reserve for cash flow hedges as part of other comprehensive income; it is limited to the
cumulative change in the fair value of the hedged item on the basis of its present value since the
hedging transaction. Gains or losses on the ineffective portion are recognised directly through profit or
loss, either in the treasury result from banking business or in the result from financial investments. If
forward contracts are used to hedge planned transactions the Deutsche Börse Group designates the
entire change in the fair value of the forward, including the forward component, as a hedging
instrument. In this case the gains or losses from the effective portion of the change in fair value for the
entire future transaction are recognised in the reserve for cash flow hedges as a component of equity. If
the Group uses futures to hedge existing receivables and liabilities, only the spot component of the future
is designated. Gains or losses from the effective portion of the change in the spot component of the
future are shown in the reserve for cash flow hedges. Changes in the forward component of the hedging
instrument that relates to the hedged item are considered to be hedging costs and shown separately in
the reserve for hedging costs in other comprehensive income. The fair value of the forward component
not included in the hedging relationship at the time it is designated is written off pro rata temporis over
the period of the hedging relationship. The amount written down is recycled from the reserve for hedging
costs to profit or loss.
Cumulative amounts in the reserve for cash flow hedges are reclassified according to the following
methodology:
◼ If the cash flow hedge serves to hedge plannend transactions, the amount from the hedging instrument
that has accumulated in other comprehensive income up to the acquisition date is derecognised from
the reserve and treated as part of the acquisition costs.
◼ For cash flow hedges of existing receivables and liabilities, the amount that has accumulated in the
reserve for cash flow hedges is reclassified to profit or loss in the periods in which there are changes in
the hedged future cash flows recognised through profit or loss.
◼ If this amount is a loss, however, and the assumption is that all or part of this loss cannot be recouped
in future periods, then this amount is recognised immediately through profit or loss.
The effectiveness of the hedging relationship is assessed at the beginning and over the entire duration of
the hedging relationship to ensure that there is an economic relationship between the hedging
instrument and the hedged item. To hedge foreign currency risks, hedging relationships are established
in which all relevant contractual parameters of the hedging transaction match exactly with those of the
hedged item. Ineffectiveness may arise in the hedging of foreign currency transactions if the timing of the
planned transaction changes compared with the original estimate. Ineffectiveness due to changes in the
default risk of Deutsche Börse Group or the counterparty to the hedging transaction is deemed to be
negligible. Effectiveness is measured regularly as at the reporting dates. The Group uses the hypothetical
derivative method for this purpose.
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Executive and Supervisory Boards
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Financial statements
Notes | Notes on the consolidated statement of financial position
Further information
When a hedging instrument expires or is sold or terminated, or when a hedge no longer meets the
criteria for hedge accounting, hedge accounting is discontinued. When the forecast transaction is no
longer expected to occur, the cumulative gain or loss and deferred costs of hedging that were reported in
equity are immediately reclassified to profit or loss.
Financial assets measured at fair value through other comprehensive income
The item “Equity investments at fair value through other comprehensive income” was renamed
“Financial assets at fair value through other comprehensive income”, because equity instruments and
debt instruments are now presented together in this category. This item comprises strategic investments
which Deutsche Börse Group has irrevocably elected to recognise at fair value through other
comprehensive income in this category at initial recognition. The Group believes that this classification is
more meaningful. In addition fixed-income securities allocated to the “Hold and sell” business model are
also presented at fair value through other comprehensive income.
Composition of financial assets measured at fair value through other comprehensive income
Strategic investments
Listed securities
Unlisted securities
Listed debt instruments
Total
2020
€m
107.0
0
107.0
4.9
111.9
2019
€m
66.3
12.5
53.8
0
66.3
None of the financial assets have been pledged as collateral by Deutsche Börse Group. Debt securities
amounting to €0.5 million expired in 2020. Debt securities amounting to €0.5 million are classified as
current as at 31 December 2020; total impairments came to less than €0.1 million.
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Notes | Notes on the consolidated statement of financial position
Further information
Amounts recognised in profit or loss and other comprehensive income
Gains/(losses) recognised in other comprehensive income
Strategic investments
Debt instruments
Total
Gains/(losses) recognised in profit or loss
Dividends related to investments derecognised during the period
Dividends related to investments held at the end of the reporting period
Total
1) Of which €0.1 million (2019: nil) are attributable to non-controlling interests.
2020
€m
2019
€m
25.5
0.31)
– 10.4
0
25.8
– 10.4
0.3
0
0.3
0
1.3
1.3
The disposal of one strategic investment resulted in a gain of €0.1 million (2019: €10.5 million),
recognised outside profit or loss in retained earnings.
Financial assets and liabilities measured at amortised cost
Composition of financial assets at amortised cost
31 Dec 2020
31 Dec 2019
Trade receivables
of which expected losses
Other financial assets measured
at amortised costs
Non-current
Current
Total
Non-current
Current
€m
€m
€m
€m
€m
0
0
616.6
616.6
– 9.2
– 9.2
0
0
447.3
– 7.1
Total
€m
447.3
– 7.1
997.5
16,225.1
17,222.6
698.7
15,381.6
16,080.3
Fixed income securities
992.1
206.0
1,198.0
693.0
592.1
1,285.1
Reverse repo transactions
Balances on nostro accounts
Money market lendings
Customer overdrafts from
settlement business
Receivables from CCP
balances
Margin calls
Other
of which expected losses
Restricted bank balances
Cash and other bank balances
0
0
0
0
0
6,176.7
6,176.7
2,252.4
2,252.4
6,440.0
6,440.0
267.7
267.7
675.6
675.6
0
5.4
– 0.3
0
0
156.6
156.6
50.0
– 0.0
55.5
– 0.3
38,420.1
38,420.1
1,467.3
1,467.3
0
0
0
0
0
0
5.7
– 0.0
0
0
6,394.3
6,394.3
1,596.2
1,596.2
6,435.8
6,435.8
231.7
231.7
48.4
48.4
8.0
75.1
0.0
8.0
80.8
– 0.0
29,988.7
29,988.7
888.1
888.1
Total
997.5
56,729.1
57,726.6
698.7
46,705.7
47,404.4
In 2020 fixed income securities in the amount of €609.6 million (2019: €596.0 million) expired.
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Financial statements
Notes | Notes on the consolidated statement of financial position
Further information
Amounts reported separately under liabilities as cash deposits by market participants are restricted. Such
amounts are invested mainly via bilateral or triparty reverse repurchase agreements and in the form of
overnight deposits at central banks and banks and shown as restricted bank balances. Government and
government-guaranteed bonds with an external rating of at least AA– are accepted as collateral for the
reverse repurchase agreements.
Composition of financial liabilities at amortised cost
31 Dec 2020
31 Dec 2019
Non-current
Current
Total
Non-current
Current
€m
0
€m
€m
388.6
388.6
€m
0
€m
Total
€m
206.7
206.7
3,474.4
14,630.0
18,104.4
2,627.2
14,225.4
16,852.6
Trade payables
Other iabilities at amortised
costs
Bonds issued
2,637.1
0
2,637.1
2,286.2
0
2,286.2
Deposits from securities
settlement business
0
12,191.6
12,191.6
0
13,725.6
13,725.6
Money market borrowings
0
1,176.2
1,176.2
Purchase price liabilities from
business combinations
Commercial Papers issued
Liabilities from CCP balances
Leasing liabilities
Bank overdrafts
Other
Cash deposits from market
participants
479.5
0
479.5
0
0
357.8
0
0
0
546.4
565.3
51.1
27.8
71.7
546.4
565.3
408.9
27.8
71.7
38,188.8
38,188.8
0
0
0
0
341.0
0
0
0
19.2
0
311.9
49.9
41.5
5.2
72.0
19.2
0
311.9
49.9
382.5
5.2
72.0
29,755.8
29,755.8
Total
3,474.4
53,207.4
56,681.8
2,627.2
44,187.9
46,815.1
Deutsche Börse AG made the investors in a bond a redemption offer in the second quarter of 2020. In
the course of this redemption offer €284.9 million was redeemed at a purchase price of 101.0 per cent.
In the fourth quarter of 2020 the remaining tranche of the same bond was repaid at its nominal value of
€315.1 million as at the termination date. The entire redemption of the bond gave rise to a negative
effect of €3.9 million recognised through profit or loss in the reporting year. To refinance this bond a new
hybrid bond with a nominal volume of €600.0 million was issued. This hybrid bond has a maturity of
27 years with a redemption option after seven years. It bears interest at 1.25 per cent.
Clearstream Banking AG issued a bond with a nominal volume of €350.0 million and an interest
coupon of 0.0 per cent in the fourth quarter 2020. The bond has a maturity of five years.
The financial liabilities recognised on the balance sheet were not secured by liens or similar rights as at
31 December 2020 or as at 31 December 2019.
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Further information
Cash deposits by market participants
Composition of cash deposits by market participants
31 Dec 2020
€m
31 Dec 2019
€m
Liabilities from margin payments
Liabilities from margin payments to Eurex Clearing AG by clearing members
31,750.3
25,461.9
Liabilities from margin payments to European Commodity Clearing AG by clearing members
Liabilities from margin payments to Nodal Clear, LLC by clearing members
Liabilities from margin payments to European Energy Exchange AG by clearing members
Liabilities from cash deposits by participants in equity trading
Total
5,964.8
473.3
0.4
0
3,794.7
494.2
0.3
4.7
38,188.8
29,755.8
Financial assets and liabilities measured at fair value through profit or loss
Financial instruments of the central counterparties
Eurex Clearing AG, European Commodity Clearing AG and Nodal Clear, LLC act as central
counterparties:
◼ Eurex Clearing AG guarantees the settlement of all transactions involving futures and options on Eurex
Germany. It also guarantees the settlement of all transactions for Eurex Repo (repo trading platform),
certain exchange transactions in equities on Frankfurter Wertpapierbörse (FWB, the Frankfurt Stock
Exchange) and certain cash market transactions on the Irish Stock Exchange. Eurex Clearing AG also
guarantees the settlement of off-order-book trades entered for clearing in the trading systems of the
Eurex exchanges, Eurex Bonds, Eurex Repo, the Frankfurt Stock Exchange and the Irish Stock
Exchange. In addition, Eurex Clearing AG clears over-the-counter (OTC) interest rate derivatives and
securities lending transactions, where these meet the specified novation criteria.
◼ European Commodity Clearing AG guarantees the settlement of spot and derivatives transactions at the
trading venues of EEX group and the connected partner exchanges.
◼ Nodal Clear, LLC, as part of the Nodal Exchange Group, is a Derivatives Clearing Organisation (DCO)
registered in the United States and is the central counterparty for all transactions executed on Nodal
Exchange.
The transactions of the clearing houses are only executed between the respective clearing house and a
clearing member. Purchases and sales of equities and bonds via the Eurex Clearing AG central
counterparty are recognised and simultaneously derecognised at the settlement date. For products that
are marked to market (futures, options on futures, as well as OTC interest-rate derivatives), the clearing
houses recognise gains and losses on open positions of clearing members on each exchange day. By
means of the variation margin, profits and losses on open positions resulting from market price
fluctuations are settled on a daily basis. The difference between this and other margin types is that the
variation margin does not comprise collateral, but is a daily offsetting of profits and losses in cash.
Therefore, futures and OTC interest rate derivatives are not reported in the consolidated balance sheet.
“Traditional” options, for which the buyer must pay the option premium in full upon purchase, are
carried in the consolidated balance sheet at fair value. Receivables and liabilities from repo transactions
and from cash-collateralised securities lending transactions are classified as held for trading and carried
at fair value.
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Financial statements
Notes | Notes on the consolidated statement of financial position
Further information
The fair values recognised in the consolidated balance sheet are based on daily settlement prices. These
are calculated and published by the clearing house in accordance with the rules set out in the contract
specifications.
Composition of financial instruments held by central counterparties
Repo transactions
Options
Others
Total
thereof non-current
thereof current
31 Dec 2020
€m
31 Dec 2019
€m
58,020.6
60,352.2
29,677.1
23,126.6
5.0
57.0
87,702.7
83,535.8
6,934.7
5,234.2
80,768.1
78,301.5
Receivables and liabilities that may be offset against a clearing member are reported on a net basis.
Financial liabilities of €95.0 million (31 December 2019: €890.0 million) were eliminated because of
intra-Group GC Pooling transactions.
Other financial assets and liabilities measured at fair value through profit or loss
For greater clarity “Derivatives” are now presented in the item “Other financial assets measured at fair
value through profit or loss” or “Other financial liabilities measured at fair value through profit or loss”.
These positions of Deutsche Börse are made up as follows:
Other financial assets and liabilities measured at fair value through profit or loss
Carrying amount 31.12.2020
Carrying amount 31.12.2019
Derivatives
Forward exchange transactions
designated as cash flow hedges
Foreign currency derivatives not
designated as hedges
Other financial assets
Fund units and debt securities
Contingent consideration
Other
Total assets
Derivatives
Forward exchange transactions
designated as cash flow hedges
Foreign currency derivatives not
designated as hedges
Other financial liabilities
Contingent consideration
Non-current
Current
Total
Non-current
€m
0.2
€m
8.1
€m
8.4
0.2
0
0.2
0
42.2
42.2
0
0
42.4
1.5
8.1
7.6
0
7.6
0
8.1
49.8
42.2
7.6
0
15.8
58.2
28.4
172.6
174.1
1,5
39.9
41.4
0
0
0
132.7
132.7
1.5
1.5
1.5
1.5
€m
0
0
0
28.4
28.4
0
0
0
0
0
84.3
84.3
84.3
Total liabilities
1.5
174.1
175.6
Current
€m
1.4
Total
€m
1.4
0
0
1.4
0.4
0
0
0.4
1.7
25.9
1.4
28.8
28.4
0
0.4
30.2
25.9
0
0
25.9
3.6
3.6
25.9
87.9
87.9
29.5
113.8
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Financial statements
Notes | Notes on the consolidated statement of financial position
Further information
As of 31 December 2020 there were foreign currency derivatives not designated in hedges with a term
of less than eight months with a nominal amount of €2,524.2 million (31 December 2019: €2,965.6
million with a term of less than seven months). Thereof €510.3 million (31 December 2019: €827
million) is attributable to derivatives with a positive fair value and thereof €2,013.9 million (31
December 2019: €2,138.6 million) is attributable to derivatives with a negative fair value. These foreign
currency derivatives were entered into mainly in order to convert USD amounts received into euros for
liquidity management purposes on the one hand and as an alternative to unsecured deposits and loans
on the other hand with the aim of hedging the unsecured counterparty risk as well as liquidity risk in
daily liquidity management.
Amounts recognised in profit or loss
Net gain/(loss) from derivatives not designated as hedges
Net gain/(loss) from cash flow hedges
Net gain/(loss) from other financial assets measured at fair value through profit or loss
Distributions from fund units
Net gain/(loss) from other financial liabilities measured at fair value through profit or loss
Total
2020
€m
38.6
– 0.2
9.4
0.8
1.8
50.4
2019
€m
54.4
0
6.3
0.3
– 3.5
57.5
Cash flow hedges that qualify for hedge accounting
Deutsche Börse AG entered into cash flow hedges in various currencies in 2020 to hedge existing or
forcast transactions. The effects of foreign currency hedging instruments on the financial position and
financial performance is as follows:
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Financial statements
Notes | Notes on the consolidated statement of financial position
Further information
Forward exchange transactions
2020
2019
Spot components from forward exchange transactions in CHF
Carrying amount in €m (non-current financial assets measured at fair value through profit and loss)
Nominal amount in Fr.m
Due date
Hedge ratio
Change in fair value of the hedging instrument in €m
Change in value of the hedged item used to measure the ineffectiveness of the hedging relationship in
€m
Weighted average hedge rate for hedging instruments (including forward points) in Fr./€
Spot components from forward exchange transactions in CHF
Carrying amount in €m (non-current financial liabilities measured at fair value through profit and loss)
Nominal amount in Fr.m
Due date
Hedge ratio
Change in fair value of the hedging instrument in €m
Change in value of the hedged item used to measure the ineffectiveness of the hedging relationship in
€m
Weighted average hedge rate for hedging instruments (including forward points) in Fr./€
Forward exchange transactions USD
Carrying amount in €m (current financial liabilities measured at fair value through profit and loss)
Nominal amount US$m
Due date
Hedge ratio
Change in fair value of the hedging instrument in €m
Change in value of the hedged item used to measure the ineffectiveness of the hedging relationship in
€m
Weighted average hedge rate for hedging instruments (including forward points) in US$/€
0.2
56.3
31.12.2022
100.0%
0.2
– 0.2
1.1
1.1
380.0
29.04.2022
100.0%
– 1.1
1.1
1.1
39.9
1,421.8
31.03.2021
67.0%
– 39.9
39.9
1.2
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
The forward contracts are in the same currency as the highly probable future transactions so the hedging
ratio is 1:1.
The revaluation surplus for cash shown in other comprehensive income relates to the following hedging
instruments:
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Financial statements
Notes | Notes on the consolidated statement of financial position
Further information
Cash flow hedge reserve
Reserve for
cash flow
hedges forward
exchange
transactions
Reserve for
cash flow
hedges foreign
currency swaps
Cost of hedging
reserve
Balance as at 1 Jan 2019
Change in fair value of hedging instruments
recognised in OCI
Hedging costs deferred and recognised in other
comprehensive income
Reclassification to profit or loss
Settlement
Balance as at 31 Dec 2019
Change in fair value of hedging instruments
recognised in OCI
Hedging costs deferred and recognised in other
comprehensive income
Reclassification to profit or loss
Settlement
Balance as at 31 Dec 2020
€m
€m
0
0
0
0
0
0
0
– 0.3
0.2
0
0
0
0
0
0
0
– 41.3
0
1.3
0
– 0.1
– 39.9
€m
0
0.2
0
0
0
Total
€m
0
0
0
0
0
0.2
0.2
0
0
0
– 0.2
0
– 41.3
– 0.3
1.5
– 0.2
– 40.1
The separate amount in the hedging reserve comprises the forward component of forward contracts. The
separated costs relate to over-time hedged items in the form of existing purchase price obligations from
business combinations.
Fair value hierarchy
The financial assets measured at fair value includes financial assets and liabilities of the following three
hierarchy levels:
◼ Level 1: Financial instruments with a quoted price for identical assets and liabilities in an active
market
◼ Level 2: Financial instruments with no quoted prices for identical instruments on an active market and
whose fair value is determined using valuation methods based on observable market parameters
◼ Level 3: Financial instruments where the fair value is determined using one or more unobservable
significant inputs. This does not apply to listed equity instruments
There were no transfers between levels for recurring fair value measurements during the year under
review.
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Further information
Fair value hierarchy
Fair value as at
31 Dec 2020
thereof attributable to:
€m
Level 1
€m
Level 2
€m
Level 3
€m
Financial assets measured at fair value through other
comprehensive income (FVOCI)
Strategic investments
Debt instruments
Total
Financial assets measured at fair value through profit or
loss (FVPL)
Non-current financial instruments held by central
counterparties
Non-current derivatives
Other non-current financial assets at FVPL
107.0
4.9
111.9
6,934.7
0.2
42.2
Current financial instruments held by central counterparties
80,768.1
Current derivatives
Other current financial assets at FVPL
8.1
7.6
0
4.9
4.9
0
0
15.8
0
0
0
0
0
0
6,934.7
0.2
0
80,768.1
8.1
0
107.0
0
107.0
0
0
26.4
0
0
7.6
34.0
Total
Total assets
87,760.9
15.8
87,711.1
87,872.8
20.7
87,711.1
141.0
Financial liabilities measured at fair value through profit or
loss (FVPL)
Non-current financial instruments held by central
counterparties
Non-current derivates
6,934.7
1.5
Current financial instruments held by central counterparties
80,673.1
Current derivatives
Other current financial liabilities at FVPL
172.6
1.5
0
0
0
0
0
6,934.7
1.5
80,673.1
172.6
0
Total liabilities
87,783.4
0
87,781.9
0
0
0
0
1.5
1.5
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Financial statements
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Further information
Fair value hierarchy previous year
Fair value as at
31 Dec 2019
thereof attributable to:
€m
Level 1
€m
Level 2
€m
Level 3
€m
66.3
66.3
12.5
12.5
0
0
53.8
53.8
5,234.2
0
5,234.2
0
Financial assets measured at fair value through other
comprehensive income (FVOCI)
Strategic investments
Total
Financial assets measured at fair value through profit or
loss (FVPL)
Non-current financial instruments held by central
counterparties
Other non-current financial assets at FVPL
28.4
11.3
0
17.1
Current financial instruments held by central counterparties
78,301.5
Current derivatives
Other current financial assets at FVPL
1.4
0.4
0
0
0
78,301.5
1.4
0
Total
Total assets
83,565.9
11.3
83,537.2
83,632.2
23.8
83,537.2
0
0
0.4
17.5
71.3
Financial liabilities measured at fair value through profit or
loss (FVPL)
Non-current financial instruments held by central
counterparties
Other non-current financial liabilities at FVPL
5,234.2
84.3
Current financial instruments held by central counterparties
77,411.5
Current derivatives
Other current financial liabilities at FVPL
25.9
3.6
0
0
0
0
0
Total liabilities
82,759.5
0
82,671.6
5,234.2
0
0
84.3
77,411.5
25.9
0
0
0
3.6
87.9
The derivatives listed in Level 2 include foreign currency forwards. The basis for measuring the market
value of the foreign currency forwards is the forward rate at the reporting date for the remaining term.
They are based on observable market prices. The basis for measuring the market value of financial
instruments held by central counterparties are market transactions for identical or similar assets on non-
active markets and option pricing models based on observable prices.
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Further information
Changes in level 3 financial instruments
Assets
Liabilities
Total
Financial assets
measured at fair
value through
profit or loss
Financial
liabilities
measured at fair
value through
profit or loss
Strategic
investments
€m
89.7
0
0.9
– 42.7
3.3
0
0
0
0
1.9
0.6
53.8
0
25.0
0
5.2
0
0
0
0
0
0
26.6
– 3.6
107.0
€m
9.1
0
7.9
– 0.3
– 3.3
4.1
0
4.1
0
0
0
17.5
0
14.5
– 0.9
– 6.7
0
0
9.6
7.6
– 0.3
2.3
0
0
34.0
€m
– 0.2
– 84.0
– 0.3
0
0
– 3.5
0.1
0
– 3.6
0
0
– 87.9
0
– 3.3
0
87.8
2.2
2.2
– 0.3
– 0.3
0
0
0
0
– 1.5
€m
98.6
– 84.0
8.5
– 43.0
0
0.6
0.1
4.1
– 3.6
1.9
0.6
– 16.7
0
36.2
– 0.9
86.3
2.2
2.2
9.3
7.3
– 0.3
2.3
26.6
– 3.6
139.4
Balance as at 1 Jan 2019
Acquisitions from business combinations
Additions
Disposals
Reclassifications
Unrealised capital gains/(losses) recognised in profit
or loss
Other operating income
Result from financial investments
Staff cost
Changes recognised in the revaluation surplus
Unrealised gains/(losses) from currency translation
recognised in equity
Balance as at 31 Dec 2019
Acquisitions from business combinations
Additions
Disposals
Reclassifications
Realised capital gains/(losses) recognised in profit or
loss
Other operating income
Unrealised capital gains/(losses) recognised in profit
or loss
Other operating income
Other operating expenses
Result from financial investments
Changes recognised in the revaluation surplus
Unrealised gains/(losses) from currency translation
recognised in equity
Balance as at 31 Dec 2020
The fair value measurement of Level 3 strategic investments is determined on a quarterly basis using
internal valuation models.
The fair value of fund units included in financial assets at FVPL is based on the net asset value
determined by the issuer. This position also includes a contingent consideration whose valuation is
based on internal discounted cash flow models that discount the expected future payment to the
valuation date using risk-adjusted discount rates.
Financial liabilities at fair value mainly consist of contingent considerations which are also valued on the
basis of discounted cash flow models in which the present value of obligations was determined using
risk-adjusted discount rates. There were no further material changes in the reporting year regarding
financial assets and liabilities allocated to Level 3. A change in the parameters observable on the
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Further information
market, taking into account realistic alternative assumptions, would not have any material effects on the
carrying amounts of the unlisted equity securities measured at fair value through profit or loss as at the
reporting date.
Debt securities held by Deutsche Börse Group which are disclosed under financial assets measured at
amortised cost have a fair value of €1,205.0 million (31 December 2019: €1,360.1million). The fair
value of the debt securities was determined by reference to published price quotations in an active
market. The securities were allocated to Level 1.
The bonds issued by Deutsche Börse Group have a fair value of €2,784.0 million (31 December 2019:
€2,451.1 million) and are disclosed under financial liabilities measured at amortised cost. The fair value
of such instruments is based on the debt instruments’ quoted prices. Due to insufficient market liquidity,
the liabilities were allocated to Level 2. The financial instrument’s carrying amount for all other items
represents a reasonable approximation of the fair value.
Offsetting financial instruments
Gross presentation of offset financial instruments held by central counterparties
Gross amount of financial
instruments
Gross amount of offset financial
instruments
Net amount of financial
instruments
31 Dec 2020
31 Dec 2019
31 Dec 2020
31 Dec 2019
31 Dec 2020
€m
€m
€m
€m
31 Dec 2019
€m
€m
Financial assets from repo
transactions
Financial liabilities from repo
transactions
Financial assets
from options
Financial liabilities
from options
81,173.2
104,334.5
– 23,152.6
– 43,982.3
58,020.6
60,352.2
– 81,078.2
– 103,444.5
23,152.6
43,982.3
– 57,925.6
– 59,462.2
78,104.7
78,171.1
– 48,427.6
– 55,044.5
29,677.1
23,126.5
– 78,104.7
– 78,171.1
48,427.6
55,044.5
– 29,677.1
– 23,126.6
Cash or securities held as collateral by central counterparties
As the clearing houses of the Deutsche Börse Group guarantee the settlement of all traded contracts, they
have established multi-level collateral systems. The central pillar of the collateral systems is the
determination of the overall risk per clearing member (margin) to be covered by cash or securities
collateral. Losses calculated on the basis of current prices and potential future price risks are covered up
to the date of the next collateral payment.
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Financial statements
Notes | Notes on the consolidated statement of financial position
Further information
In addition to these daily collateral payments, each clearing member must make contributions to the
respective default fund (for further details, see the risk report in the combined management report). Cash
collateral is reported in the consolidated balance sheet under “cash deposits by market participants” and
the corresponding amounts under “restricted bank balances”.
Securities collateral is generally not derecognised by the clearing member providing the collateral, as the
opportunities and risks associated with the securities are not transferred to the secure party. Recognition
at the secure party is only permissible if the clearing member providing the transfer is in default
according to the underlying contract.
The aggregate margin calls based on the executed transactions and default fund requirements after
haircuts was €62,467.3 million as at the reporting date (2019: €52,889.4 million). Collateral totalling
€79,747.6 million (2019: €61,711.0 million ) was actually deposited.
Composition of collateral held by central counterparties
Cash collateral (cash deposits)1)3)
Securities and book-entry securities collateral2)3)
Total
1) The amount includes the clearing fund totalling €4,600,8 million (2019: € 2,914.5million).
2) The amount includes the clearing fund totalling €2,294.1 million (2019: € 2,055.2 million).
3) The collateral value is determined on the basis of the fair value less a haircut
31 Dec 2020
€m
31 Dec 2019
€m
38,193.0
26,489.6
41,554.6
35,221.4
79,747.6
61,711.0
13. Other current assets
Composition of other current assets
Other receivables from CCP transactions (commodities)
Prepaid expenses
Tax receivables (excluding income taxes)
Interest receivables on taxes
Miscellaneous
Total
31 Dec 2020
€m
414.3
67.6
28.9
26.6
10.7
31 Dec 2019
€m
208.7
66.5
39.7
19.3
6.7
548.1
340.9
230
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Executive and Supervisory Boards
Management report
Financial statements
Notes | Notes on the consolidated statement of financial position
Further information
14. Equity
Changes in equity are presented in the consolidated statement of changes in equity. As at
31 December 2020, the number of no-par value registered shares of Deutsche Börse AG in issue was
190,000,000 (31 December 2019: 190,000,000).
Subject to the agreement of the Supervisory Board, the Executive Board is authorised to increase the
subscribed share capital by the following amounts:
Composition of authorised share capital
Date of
authori-
sation by the
shareholders Expiry date
Existing shareholders’ pre-emptive rights may be
disapplied for
fractioning and/or may be disapplied if the share issue
is:
Number
shares
Authorised share capital I1)
13,300,000 11 May 2016 10 May 2021 n.a.
Authorised share capital II2)
19,000,000 19 May 2020 18 May 2025 for cash at an issue price not significantly lower than the
stock
exchange price, up to a maximum amount of 10 per cent
of
the nominal capital.
against non-cash contributions for the purpose of acquiring
companies, parts of companies, interests in companies, or
other assets.
Authorised share capital III2)
19,000,000 19 May 2024 18 May 2024 n.a.
Authorised share capital IV1)
6,000,000 17 May 2017 16 May 2022 n.a.
1) Shares may only be issued, excluding shareholders’ pre-emptive subscription rights, provided that the aggregate amount of new shares issued excluding
shareholders' pre-emptive rights during the term of the authorisation (including under other authorisations) does not exceed 20 per cent of the issued share capital.
2) Shares may only be issued, excluding shareholders’ pre-emptive subscription rights, provided that the aggregate amount of new shares issued excluding
shareholders' pre-emptive rights during the term of the authorisation (including under other authorisations) does not exceed 10 per cent of the issued share capital.
Contingent capital
By resolution of the Annual General Meeting of 8 May 2019, the Executive Board is authorised, subject
to the consent of the Supervisory Board, to issue in the period until 7 May 2024 on one or several
occasions convertible bonds and/or warrant-linked bonds or a combination of such instruments with a
total principal amount of up to €5,000,000,000 with or without a limited term and to grant holders or
creditors of such bonds conversion or option rights, respectively, to acquire new no-par value registered
shares in Deutsche Börse AG representing a notional interest in the share capital of up to €17,800,000,
as stipulated in the terms and conditions of convertible bonds or the terms and conditions of the warrants
attaching to the warrant-linked bonds.
The Executive Board is authorised, subject to the consent of the Supervisory Board, to exclude the
subscription rights of the shareholders in relation to bonds with conversion or option rights to acquire
shares in Deutsche Börse AG in the following cases: The Executive Board is authorised, subject to the
approval of the Supervisory Board, to exclude shareholders’ pre-emptive rights to bonds with conversion
or option rights to shares of Deutsche Börse AG in the following cases: (i) to avoid fractional amounts, (ii)
when the issue price of a bond is not materially below the theoretical fair value determined in accordance
with recognised financial techniques and the total number of shares attributable to these bonds does not
exceed 10 per cent of the share capital, (iii) to grant the holders of conversion or option rights to shares
of Deutsche Börse AG subscription rights to offset any dilutive effects to the same extent as they would be
entitled to receive after exercising these rights.
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Executive and Supervisory Boards
Management report
Financial statements
Notes | Notes on the consolidated statement of financial position
Further information
The bonds may also be issued by companies based in Germany or abroad that are affiliated with
Deutsche Börse AG within the meaning of sections 15 ff. of the Aktiengesetz (AktG, German Stock
Corporation Act). Accordingly, the share capital was contingently increased by up to €17,800,000
(contingent capital 2019). To date, the authorisation to issue convertible bonds and/or bonds with
warrants has not been exercised.
There were no further subscription rights to shares as at 31 December 2020 or 31 December 2019.
Revaluation surplus
Revaluation surplus
Recognition of
hidden
reserves from
fair value
measurement
€m
Equity
investments
measured
at FVOCI
€m
Balance as at 1 Jan 2019 (gross)
103.7
16.5
Changes from defined benefit
obligations
Fair value measurement
0
0
Balance as at 31 Dec 2019 (gross)
103.7
Changes from defined benefit
obligations
Fair value measurement
0
0
Cash flow
hedges
Defined
benefit
obligations
€m
€m
0
0
– 177.1
– 42.1
0
– 10.4
0.2
0
6.1
0
0.2
– 219.2
0
– 25.2
Other
€m
– 0.3
– 0.9
0
– 1.2
– 0.4
25.7
– 40.3
0
0
Balance as at 31 Dec 2020 (gross)
103.7
31.8
– 40.1
– 244.4
– 1.6
Deferred taxes
Balance as at 1 Jan 2019
Additions
Reversals
Balance as at 31 Dec 2019
Additions
Reversals
Balance as at 31 Dec 2020
0
0
0
0
0
0
0
Balance as at 1 Jan 2019 (net)
Balance as at 31 Dec 2019 (net)
Balance as at 31 Dec 2020 (net)
103.7
103.7
103.7
Retained earnings
– 1.9
0.1
0
– 1.8
0
– 7.5
– 9.3
14.6
4.3
0
0
– 0.1
– 0.1
0.2
0
0.1
48.8
11.1
0
59.9
6.9
0
66.8
0
– 128.3
0.1
– 159.3
22.5
– 40.0
– 177.6
0.1
0.2
0
0.3
0.1
0
0.4
– 0.2
– 0.9
– 1.2
Total
€m
– 57.2
– 43.0
– 10.2
– 110.4
– 25.6
– 14.6
– 150.6
47.0
11.4
– 0.1
58.3
7.2
– 7.5
58.0
– 10.2
– 52.1
– 92.6
The “retained earnings” item includes exchange rate differences amounting to €– 98.3 million
(2019: € –8.2 million). In the reporting year €86.1 million (2019: €2.1 million) was transferred from
currency translation for foreign subsidiaries and €2.9 million (2019: €0.7 million) in connection with the
hedging of foreign exchange risks.
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Executive and Supervisory Boards
Management report
Financial statements
Notes | Notes on the consolidated statement of financial position
Further information
15. Shareholders’ equity and appropriation of net profit of Deutsche Börse AG
The annual financial statements of the parent company Deutsche Börse AG, prepared as at
31 December 2020 in accordance with the provisions of the Handelsgesetzbuch (HGB, German
Commercial Code), report net profit for the period of €1,161.9m (2019: €825.9m) and equity of
€3,511.8m (2019: €2,867.5m). In 2020, Deutsche Börse AG distributed €531.9 Mio. € (€2.90 per
share) from distributable profit for the previous year.
Proposal on the appropriation of the unappropriated surplus
Net profit for the period
Appropriation to other retained earnings in the annual financial statements
Unappropriated surplus
Proposal by the Executive Board:
Distribution of a regular dividend to the shareholders of €3.00 per share for 183,521,257 no-par value shares
carrying dividend rights
Appropriation to retained earnings
31 Dec 2020
€m
1,161.9
– 571.9
590.0
550.6
39.4
No-par value shares carrying dividend rights
Number of shares issued as at 31 December
Number of treasury shares as at the reporting date
Number of shares outstanding as at 31 December
31 Dec 2020
31 Dec 2019
Number
Number
190,000,000
190,000,000
– 6,478,743
– 6,570,965
183,521,257
183,429,035
The proposal on the appropriation of distributable profit reflects treasury shares held directly or indirectly
by the company that do not carry dividend rights under section 71b of the Aktiengesetz (AktG, the
German Stock Corporation Act). The number of shares carrying dividend rights can change until the
Annual General Meeting through the repurchase or sale of further treasury shares. In this case, with a
dividend of €3.00 per eligible share, an amended resolution for the appropriation of distributable profit
will be proposed to the Annual General Meeting.
16. Provisions for pensions and other employee benefits
Defined benefit pension plans
Provisions for pensions and similar obligations are measured using the projected unit credit method on
the basis of actuarial reports in accordance with IAS 19. Calculating the present value requires certain
actuarial assumptions (e.g. discount rate, staff turnover rate, salary and pension trends) to be made. The
current service cost and the net interest expense or income for the subsequent period are calculated on
the basis of these assumptions.
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Executive and Supervisory Boards
Management report
Financial statements
Notes | Notes on the consolidated statement of financial position
Further information
The fair value of plan assets is deducted from the present value of pension obligations, reflecting the
asset ceiling rules if there are any excess plan assets. This results in the net defined benefit liability or
asset. Net interest expense for the financial year is calculated by applying the discount rate determined
at the beginning of the financial year to the net defined benefit liability determined as at that date.
The relevant discount rate is determined by reference to the return on long-term corporate bonds with a
rating of at least AA (Moody’s Investors Service, S&P Global Ratings, Fitch Ratings and DBRS) on the
basis of the information provided by Bloomberg, and a maturity that corresponds approximately to the
maturity of the pension obligations. Moreover, the bonds must be denominated in the same currency as
the underlying pension obligation. Measurement of the pension obligations in euros is, in principle,
based on a discount rate which is determined according to the Towers Watson “GlobalRate:Link”
methodology updated in line with the current market trend.
The actuarial gains or losses and the difference between the expected and the actual return or loss on
plan assets are recognised in other comprehensive income in the revaluation surplus. They result from
changes in expectations with regard to life expectancy, pension trends, salary trends and the discount
rate.
Other long-term benefits for employees and members of executive boards (total disability pension,
transitional payments) are also measured using the projected unit credit method. Actuarial gains and
losses and past service cost are recognised immediately and in full through profit or loss.
The defined benefit obligations of the companies of Deutsche Börse Group relate primarily to final salary
arrangements and pension plans based on capital components, which guarantee employees a choice of
either lifelong pensions or capital payments on the basis of the final salary paid. Deutsche Börse Group
uses external trust solutions to cover some of its pension obligations.
Net liability of defined benefit obligations
Germany
Luxembourg
€m
536.1
€m
89.1
Total
31 Dec 2020
€m
Total
31 Dec 2019
€m
666.7
616.5
Other
€m
41.5
Present value of defined benefit
obligations that are at least partially
funded
Fair value of plan assets
– 374.3
– 58.4
– 31.7
– 464.4
– 428.2
Funded status
Present value of unfunded obligations
Net liability of defined benefit
obligations
Impact of minimum funding
requirement/asset ceiling
161.8
4.7
166.5
30.7
0.7
31.4
0
0
9.8
0.1
9.9
0
202.3
5.5
207.8
188.3
5.1
193.4
0
0
Amount recognised in the balance sheet
166.5
31.4
9.9
207.8
193.4
234
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Executive and Supervisory Boards
Management report
Financial statements
Notes | Notes on the consolidated statement of financial position
Further information
The defined benefit plans comprise a total of 2,882 beneficiaries (2019: 2,772). The present value of
defined benefit obligations can be allocated to the beneficiaries as follows:
Allocation of the present value of the defined benefit obligation to the beneficiaries
Eligible current employees
Former employees with vested
entitlements
Pensioners or surviving dependants
Total
Total
Total
Germany
Luxembourg
Other
31 Dec 2020
€m
225.8
199.3
115.7
540.8
€m
82.0
7.1
0.7
89.8
€m
39.2
0.4
2.0
41.6
€m
347.0
206.8
118.4
672.2
31 Dec 2019
€m
319.7
192.1
109.8
621.6
Essentially, the retirement benefits encompass the following retirement benefit plans:
Executive boards of Group companies (Germany and Luxembourg)
Individual commitment plans exist for executive board members of certain Group companies; they are
based on the plan for executives described in the second paragraph below, i.e. in each calendar year the
company provides an annual contribution to a capital component calculated in accordance with actuarial
principles. The benefit assets equal the total of the acquired capital components of the individual years
and are converted into a lifelong pension once the benefits fall due. In addition, retirement benefit
agreements are in place with members of the executive boards of Group companies, under which they
are entitled to pension benefits upon reaching the age of 63 and following reappointment. When the
term of office began, the replacement rate was 30 per cent of individual pensionable income. It rose by
5 per-centage points with each reappointment, up to a maximum of 50 per cent of pensionable income.
Details of the pension commitments for members of Deutsche Börse AG’s Executive Board can be found
in the remuneration report.
Germany
There is an employee-funded deferred compensation plan for employees of certain Deutsche Börse
Group companies in Germany who joined prior to 1 January 2019. Under this plan, it is possible to
convert portions of future remuneration entitlements into benefit assets of equal value which bear
interest of 6 per cent p.a. The benefits consist of a capital payment made in equal annual instalments
over a period of three years upon the reaching the age of 65 or at an earlier date due to disability or
death.
In the period from 1 January 2004 to 30 June 2006, executives in Germany were offered the
opportunity to participate in the following pension system based on capital components: the benefit is
based on annual income received, composed of fixed annual salary and the variable remuneration. The
participating companies provide an amount corresponding to a specific percentage of this eligible
income every year. This amount is multiplied by a capitalisation factor depending on age, resulting in the
“annual capital component”. The benefit assets equal the total of the acquired capital components of the
individual years and are converted into a lifelong pension once the benefits fall due. This benefit plan
was closed to new staff on 30 June 2006; the executives who were employed in the above period can
continue to earn capital components.
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Executive and Supervisory Boards
Management report
Financial statements
Notes | Notes on the consolidated statement of financial position
Further information
As part of adjustments to the remuneration systems to bring them into line with supervisory
requirements contracts were adjusted for some executives. For executives affected, whose contracts
allowed for the inclusion of only the income received and the variable remuneration above the upper
limit of the contribution assessment as pensionable income, the pensionable income was determined on
the basis of income received from the year 2016. This is adjusted annually to account for the increase of
the cost of living according to the consumer price index for Germany as issued by the Federal Statistical
Office. For executives affected, whose capital components were calculated on the basis of income
received, without observing the upper limit of the contribution assessment, an amount has been
determined that will be reviewed annually, and adjusted if necessary, by the Supervisory Board, taking
any changes in circumstances in terms of income and purchasing power into account.
Luxembourg
The defined benefit pension plan in favour of Luxembourg employees is funded by means of cash
contributions to an “association d'épargne pension” (ASSEP) organised in accordance with Luxembourg
law. The benefits consist of a one-off capital payment, which is generally paid upon reaching the age of
65. Contributions to the ASSEP are funded in full by the participating companies. The contributions are
determined annually on the basis of actuarial opinions in accordance with Luxembourg law.
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Executive and Supervisory Boards
Management report
Financial statements
Notes | Notes on the consolidated statement of financial position
Further information
Changes in net defined benefit obligations
Present value of
obligations
Fair value of plan
assets
Total
2020
2019
2020
2019
2020
€m
€m
€m
€m
€m
2019
€m
Balance as at 1 Jan
621.6
536.2 – 428.2 – 372.1
193.4
164.1
Changes through business combinations
Current service cost
Interest expense/(income)
Past service cost and gains and losses on settlements
0
0.1
26.2
26.1
0
0
0
0
0
0.1
26.2
26.1
6.0
0.3
9.2
– 4.1
– 6.5
0
0
0
1.9
0.3
2.7
0
32.5
35.3
– 4.1
– 6.5
28.4
28.8
Remeasurements
Return on plan assets, excluding amounts already recognised in
interest income
Adjustments to demographic assumptions
Adjustments to financial assumptions
Experience adjustments
Effect of exchange rate differences
0
0
0
0
25.1
70.3
– 5.8
– 5.6
0
0
6.0
– 22.5
6.0
– 22.5
0
0
0
0
0
0
0
0
0
0
25.1
70.3
– 5.8
– 5.6
0
0
42.2
0.1
Effect of exchange rate differences
0.1
0.6
0
– 0.5
0.1
19.3
64.7
6.0
– 22.5
25.31)
Contributions:
Employers
Plan participants
Benefit payments
Settlements
Tax and administration costs
Changes in the basis of consolidation
0
0.9
0
– 43.6
– 42.5
– 43.6
– 42.5
0.8
– 0.9
– 0.8
– 13.5
– 15.2
13.5
15.2
0
0
– 0.8
– 0.9
0
1.4
12.1
0
– 8.5
0
1.5
0
0
0
0
0.6
3.6
0
0
0
0.6
0
Balance as at 31 Dec
672.2
621.6 – 464.4 – 428.2
207.8
193.4
1) Thereof €– 0.2 million (2019: €– 0.2 million) in the offsetting item for non-controlling interests
The basis for determining the discount rate was refined in the financial year. A modified bond selection
for the relevant portfolios of high-quality corporate bonds, which is used as the basis for determining the
discount rate, resulted in a discount rate of 0.7 percent as of 31 December 2020. Without this change,
the discount rate would have been 0.4 percent. This would have led to an increase in the present value
of the defined benefit obligation of €29.5 million and, as a result of the adjustments to the financial
assumptions, to a corresponding actuarial loss before tax in other comprehensive income.
In 2020, employees converted a total of €4.8 million of their variable remuneration into deferred
compensation benefits (2019: €6.4 million).
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Executive and Supervisory Boards
Management report
Financial statements
Notes | Notes on the consolidated statement of financial position
Further information
Assumptions
Provisions for pension plans and other employee benefits are measured annually at the reporting date
using actuarial techniques. The assumptions for determining the actuarial obligations for the pension
plans differ according to the individual conditions in the countries concerned and are shown in the
following table:
Actuarial assumptions
Discount rate
Salary growth
Pension growth
Staff turnover rate1)
1) Up to the age of 50, afterwards 0 per cent
31 Dec 2020
31 Dec 2019
Germany
Luxembourg
Germany
Luxembourg
%
0.70
3.00
1.90
2.00
%
0.70
3.30
1.80
2.00
%
1.00
3.50
2.00
2.00
%
1.00
3.30
1.80
2.00
In Germany, the “2018 G” mortality tables (generation tables) developed by Prof Klaus Heubeck are
used. For Luxembourg, generation tables of Institut national de la statistique et des études économiques
du Grand-Duché de Luxembourg are used.
Sensitivity analysis
The sensitivity analysis presented in the following considers the change in one assumption of the main
plans in Germany and Luxembourg at a time, leaving the other assumptions unchanged from the original
calculation, i.e. possible correlation effects between the individual assumptions are not taken into
account.
Sensitivity of defined benefit obligation to change in the weighted principal assumptions
Change in actuarial assumption
Effect on defined benefit obligation
Present value of the obligation1)
2020
2019
defined benefit
obligation
Change
defined benefit
obligation
€m
630.6
%
–
€m
596.0
Change
%
–
Discount rate
Increase by 1.0 percentage point
537,8
– 14.7
508.1
– 14.7
Salary growth
Increase by 0.5 percentage points
Reduction by 1.0 percentage point
Reduction by 0.5 percentage points
Pension growth
Increase by 0.5 percentage points
Reduction by 0.5 percentage points
Life expectancy
Increase by one year
Reduction by one year
1) Prior year adjusted and includes only the main plans in Germany and Luxembourg.
746,9
642.1
619,3
643.8
617,2
650,1
609.9
18.4
1.8
– 1.8
2.1
– 2.1
3.1
– 3.3
707.8
609.3
585.1
609.6
18.8
2.2
– 1.8
2.3
583.7
– 2.1
614.4
3.1
577.7
– 3.1
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Executive and Supervisory Boards
Management report
Financial statements
Notes | Notes on the consolidated statement of financial position
Further information
Composition of plan assets
Germany
In Germany, plan assets are held by a trustee in safekeeping for individual companies of Deutsche Börse
Group and the beneficiaries. At the company’s instruction, the trustee uses the funds transferred to
acquire securities, without any consulting by the trustee. The contributions are invested in accordance
with an investment policy, which may be amended by the companies represented in the investment
committee. The trustee may refuse to carry out instructions if they are in conflict with the fund’s
allocation rules or the payment provisions. In accordance with the investment policy,
a value preservation mechanism is applied; investments can be made in different asset classes.
Luxembourg
In Luxembourg, the Board of Directors of the Clearstream Pension Fund is responsible for determining
the investment strategy, with the aim of maximising returns in relation to a benchmark. This benchmark
is 75 per cent derived from the return on five-year German federal government bonds and 25 per cent
from the return on the EURO STOXX 50 Index. According to the investment policy, the fund may only
invest in fixed-income and variable-rate securities, as well as listed investment fund units; it may hold
cash, including in the form of money market funds.
Composition of plan assets
Bonds
Government bonds
Multilateral development banks
Corporate bonds
Derivatives
Stock index futures
Interest rate futures
Investment funds
Total listed
Qualifying insurance policies
Cash
Total not listed
Total plan assets
31 Dec 2020
31 Dec 2019
€m
349.9
211.5
0
138.4
3.0
2.9
0.1
28.1
381.0
31.8
51.6
83.4
%
75.3
0.6
6.1
82.0
6.8
11.1
18.0
€m
352.1
246.9
0
105.2
– 0.4
0.4
– 0.8
26.1
377.8
21.0
29.4
50.4
464.4
100.0
428.2
%
82.2
– 0.1
6.1
88.2
4.9
6.9
11.8
100.0
As at 31 December 2020, the plan assets did not include any financial instruments of the Group (2019:
zero). Neither did they include any properties or other assets used by companies in Deutsche Börse
Group.
Risks
In addition to the general actuarial risks, the risks associated with the defined benefit obligations relate
especially to financial risks in connection with the plan assets, including in particular counterparty credit
and market risks.
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Executive and Supervisory Boards
Management report
Financial statements
Notes | Notes on the consolidated statement of financial position
Further information
Market risk
The return on plan assets is assumed to be the discount rate determined on the basis of corporate bonds
with an AA rating. If the actual rate of return on plan assets is lower than the discount rate used, the net
defined benefit liability increases accordingly. If volatility is low, the actual return is further expected to
exceed the return on corporate bonds with a good rating in the medium to long term. The level of the net
liability is influenced by the discount rates in particular, whereby the current low interest rates contribute
to a relatively high net liability. Deutsche Börse Group considers the share price risk resulting from
derivative positions in equity index futures in the plan assets to be appropriate. The company bases its
assessment on the expectation that the overall volume of payments from the pension plans will be
manageable in the next few years, that the total amount of the obligations will also be manageable and
that it will be able to meet these payments in full from operating cash flows. Any amendments to the
investment policy take into account the duration of the pension obligation as well as the expected
payments over a period of ten years.
Inflation risk
Possible inflation risks that could lead to an increase in defined benefit obligations exist because some
pension plans are final salary plans or the annual capital components are directly related to salaries, i.e.
a significant increase in salaries would lead to an increase in the benefit obligation from these plans. In
Germany, however, there are no contractual arrangements with regard to inflation risk for these pension
plans. An interest rate of 6 per cent p.a. has been agreed for the employee-financed deferred
compensation plan; the plan does not include any arrangements for inflation, so that it has to be
assumed that there will be little incentive for employees to contribute to the deferred compensation plan
in times of rising inflation. In Luxembourg, salaries are adjusted for the effects of inflation on the basis of
a consumer price index no more than once a year; this adjustment leads to a corresponding increase in
the benefit obligation from the pension plan. Since the obligation will be met in the form of a capital
payment, there will be no inflation-linked effects once the beneficiary reaches retirement age.
Duration and expected maturities of the pension obligations
The weighted duration of the pension obligations as at 31 December 2020 is 16.6 years
(2019: 16.7 years).
Expected maturities of undiscounted pension payments
Less than 1 year
Between 1 and 2 years
Between 2 and 5 years
More than 5 years up to 10 years
Total
Expected pension payments1)
31 Dec 2020
€m
15,7
15,6
50.1
144,6
226,0
31 Dec 2019
€m
14,9
13,8
48.0
126,8
203,5
1) The expected payments in Swiss francs were translated into euros at the relevant closing rate on 31 December.
The expected costs of defined benefit plans (excluding service cost for deferred compensation) amount to
approximately €17.7 million for the 2021 financial year, including net interest expense.
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Executive and Supervisory Boards
Management report
Financial statements
Notes | Notes on the consolidated statement of financial position
Further information
Defined contribution pension plans and multi-employer plans
Defined contribution plans
There are defined contribution plans as part of the occupational pension system using pension funds
and similar pension institutions. In addition, contributions are paid to the statutory pension insurance
scheme. The level of contributions is normally determined in relation to income. As a rule, no provisions
are recognised for defined contribution plans. The contributions paid are reported as pension expenses
in the year of payment. There are defined contribution pension plans for employees in several countries.
In addition, the employer pays contributions to employees’ private pension funds.
Multi-employer plans
Several Deutsche Börse Group companies are member institutions of BVV Versicherungsverein des
Bankgewerbes a.G., a pension insurance provider with registered office in Berlin. Employees and
employers make regular contributions, which are used to provide guaranteed pension plans, and a
potential surplus. The contributions to be made are derived from contribution rates applied to active
employees’ monthly gross salaries, taking into account specific financial thresholds. Member institutions
have a subsidiary liability for the fulfilment of BVV’s agreed pension benefits. However, we consider the
risk that this liability will be invoked as remote. Given that BVV membership is governed by several
Works Council Agreements, membership termination is subject to certain conditions. Deutsche Börse
Group considers BVV pension obligations as multi-employer defined benefit pension plans. However, we
currently lack information regarding the allocation of BVV assets to individual member institutions and
the respective beneficiaries. Moreover, we do not know Deutsche Börse Group’s actual share in BVV’s
total obligations. This plan is therefore shown in the Group’s financial reporting as a defined contribution
plan. On the basis of current information published by BVV there is no shortfall that could affect the
future contributions payable by the Group.
EPEX Netherlands B.V. participates in the ABP pension fund within the EEX subgroup. Participation is
mandatory for all employees. Employer contributions are calculated by ABP and adjusted, if necessary.
Since the allocation of assets to member institutions and beneficiaries is not possible, this pension plan
can also be presented only as a defined contribution plan.
During the reporting period, the costs associated with defined contribution plans, and designated multi-
employer plans, amounted to €47.0 million (2019: €42.8 million). In 2021, Deutsche Börse Group
expects to make contributions to multi-employer plans amounting to around €10.6 million.
Composition of other current liabilities
Other long-term employee benefits
Pensions obligations (IHK)
Jubilee
Total
31 Dec 2020
€m
8.5
6.2
14.6
31 Dec 2019
€m
8.7
6.0
14.7
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Executive and Supervisory Boards
Management report
Financial statements
Notes | Notes on the consolidated statement of financial position
Further information
17. Share-based payment
Deutsche Börse Group operates the Group Share Plan (GSP), the Stock Bonus Plan (SBP), the Co-
Performance Investment Plan (CPIP), the Performance Share Plan (PSP) and the Management Incentive
Programme (MIP) as well as the Long-term Sustainable Instrument (LSI) and the Restricted Stock Units
(RSU), which provide share-based payment components for employees, senior executives and executive
board members.
Stock Bonus Plan (SBP)
The SBP is open to senior executives of Deutsche Börse AG and its participating subsidiaries. It grants a
long-term remuneration component in the form of so-called SBP shares. These are generally accounted
for as share-based payments for which Deutsche Börse AG has a choice of settlement in cash or equity
instruments for certain tranches. Tranches due in previous years were each settled in cash. In the
reporting period, the company established an additional tranche of the SBP for senior executives who
are not risk takers. In order to participate in the SBP, a beneficiary must have earned a bonus. The
awards are settled in cash and the SBP shares are measured as cash-settled share-based payment
transactions. The cost of the options is estimated using an option pricing model (fair value
measurement) and recognised in staff costs in the consolidated income statement.
The number of stock options is determined by the amount of the individual and performance-based SBP
bonus for the financial year, divided by the average share price (Xetra closing price) of Deutsche Börse
AG’s shares in the fourth quarter of the financial year in question. Neither the converted SBP bonus nor
the stock options are paid at the time the bonus is determined. Rather, the entitlement is generally
received three years after the grant date (the "waiting period"). Within this period, beneficiaries cannot
assert shareholder rights (in particular, the rights to receive dividends and attend the Annual General
Meeting). Once they have met the condition of service, the beneficiaries’ claims resulting from the SBP
are calculated on the first trading day following the last day of the waiting period. The current market
price at that date (closing auction price of Deutsche Börse shares in electronic trading on the Frankfurt
Stock Exchange) is multiplied by the number of stock options. Stock options are settled in cash.
Evaluation of the SBP
The company uses an adjusted Black-Scholes model (Merton model) to calculate the fair value of the
stock options.
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Executive and Supervisory Boards
Management report
Financial statements
Notes | Notes on the consolidated statement of financial position
Further information
Valuation parameters for SBP shares
Tranche
20202)
Tranche
2019
Tranche
2018
Tranche
2017
Tranche
20161)
Term to
Risk-free interest rate
Volatility of Deutsche Börse AG shares
Dividend yield
Exercise price
31.03.2024 31.03.2023 28.02.2022 28.02.2021 31.03.2020
%
%
%
€
– 0.77
– 0.77
– 0.75
– 0.75
– 0.75
25.38
27.92
33.31
25.90
2.08
0
2.08
0
2.08
0
2.08
0
0.0
2.08
0
1) The number of stock options, settlement obligation, and short-term provision of the 2016 tranche includes the unsettled shares of the 2015 tranche.
2) Given that the 2020 SBP tranche stock options for senior executives will not be granted until the 2021 financial year, the number of shares applicable as at the
reporting date may be adjusted during the 2021 financial year.
The valuation model does not take into account hurdle rates. The volatilities applied correspond to the
market volatilities of comparable options with comparable maturities.
Valuation of SBP shares
Tranche
Balance at
31 Dec 2020
Number
2016
2017
2018
2019
2020
Total
147
11,915
11,151
6,825
8,187
38,225
Deutsche Börse
AG share price at
31 Dec 2020
Intrinsic value/
option at
31 Dec 2020
Fair value/
option at
31 Dec 2020
Settlement
obligation
Current
provision at
31 Dec 2020
€
€
€
139,25
139,25
139,25
139,25
139,25
139,25
139,25
139,25
139,25
139,25
115.30
133.21
95.79
62.55
30.64
€m
0.0
1.6
1.1
0.4
0.3
3.4
€m
0.0
1.6
0
0
0
1.6
Non-current
provision at
31 Dec 2020
€m
0
0.0
1.0
0.4
0.3
1.7
Average price of the exercised and forfeited share options
Tranche
2016
2017
2018
2019
Average price of the exercised
share options
€
117.78
136.87
141.65
121.40
Average price of the forfeited
share options
€
134.53
126.72
88.92
59.17
The stock options from the 2016 SBP tranche were exercised in the reporting period following the
expiration of the waiting period. Shares of the SBP tranches 2017, 2018 and 2019 were paid to former
employees as part of severance payments in the year under review.
The carrying amount of the provision for the SBP results from the measurement of the number of SBP
stock options at the fair value of the closing auction price of Deutsche Börse shares in electronic
trading at the Frankfurt Stock Exchange at the reporting date and its proportionate recognition over the
waiting period.
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Executive and Supervisory Boards
Management report
Financial statements
Notes | Notes on the consolidated statement of financial position
Further information
Provisions for the SBP amounting to € 3.4 million were recognised at the reporting date of 31 December
2020 (31 December 2019: € 4.3 million). The total expense for LSI stock options in the reporting
period amounted to € 3.4 million (2019: € 2.6 million).
Change in number of SBP shares allocated
Additions/
Additions/
Additions/
Additions/
Additions/
Balance at
31 Dec
(disposals)
Tranche
(disposals)
Tranche
(disposals)
Tranche
(disposals)
Tranche
(disposals)
Tranche
2019
2016
2017
2018
2019
2020
Fully
settled
cash
options
Options
forfeited
Balance at
31 Dec 2020
48,062
620
352
275
– 1,326
8,187 – 16,412 – 1,533
38,225
To other
senior
executives
Total
48,062
620
352
275
– 1,326
8,187 – 16,412 – 1,533
38,225
Long-term Sustainable Instrument (LSI) and Restricted Stock Units (RSU)
In 2014, Deutsche Börse Group introduced the Long-Term Sustainable Instrument (LSI) plan in order to
provide share-based remuneration in line with regulatory requirements. This programme was extended
in 2016 with the Restricted Stock Units (RSU) plan. The following disclosures relate to both plans.
Long-term Sustainable Instrument (LSI)
The LSI remuneration model requires at least half of a part of the variable remuneration to be settled in
cash and half in phantom shares of Deutsche Börse AG (LSI shares). All tranches will be settled in cash.
A portion of the variable remuneration is paid in the subsequent year and another portion over a further
period of three or four years. Moreover, a portion of the variable remuneration shall be converted into
RSU, subject to a three-year retention period after grant and a one-year waiting period (RSU shares).
Deutsche Börse Group thus measures the LSI shares as cash-settled share-based payment transactions.
The options are measured using an option pricing model (fair value measurement). Any right to payment
of a stock bonus only vests after the expiration of the one-year service period on which the plan is
based, taking certain waiting periods into account.
The number of LSI and RSU shares for the 2015 to 2019 2019 tranches is calculated by dividing the
proportionate LSI or RSU bonus, respectively, for the year in question by the average closing price of
Deutsche Börse AG shares in the last month of a financial year. The number of LSI and RSU shares for
the 2020 tranche is based on the closing auction price of Deutsche Börse shares as at the disbursement
date of the cash component of the 2020 tranche in 2021, or on the closing price as at the following
trading day on the Frankfurt Stock Exchange. This results in individual LSI tranches for the LSI bonus,
which have maturities of between one and five years. The RSU bonus is used as a basis for another
four-year tranche. Payment of each tranche is made after a waiting period of one year. Neither
remuneration system stipulates any condition of service. Following the expiry of the waiting period, both
the LSI and the RSU shares of the 2015 to 2019 tranches are measured on the basis of the average
closing price of Deutsche Börse AG shares in the last month preceding the end of the waiting period.
The LSI and RSU shares of the 2020 tranche are measured at the closing auction price as at the first
trading day in February of the year in which the holding period ends.
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Executive and Supervisory Boards
Management report
Financial statements
Notes | Notes on the consolidated statement of financial position
Further information
Restricted Stock Units (RSU)
Like the LSI plan, the RSU plan applies to risk takers within Deutsche Börse Group. RSU shares are
settled in cash; Deutsche Börse Group thus measures the RSU shares as cash-settled share-based
payment transactions. The options are measured using an option pricing model (fair value
measurement). Any right to payment of a stock bonus only vests after the expiration of the one-year
service period on which the plan is based, taking a three-year retention period and a one-year waiting
period into account.
Evaluation of the LSI and the RSU
The company uses an adjusted Black-Scholes model (Merton model) to calculate the fair value of the
LSI and RSU stock options.
Valuation parameters for LSI and RSU shares
Tranche 2020
Tranche 2019
Tranche 2018
Tranche 2017
Tranche 2016 Tranche 2015
Term to
31.12.2020 to
31.12.2024
31.12.2019 to
31.12.2023
31.12.2018 to
31.12.2022
31.12.2018 to
31.12.2021
31.12.2018 to
31.12.2020
31.12.2016 to
31.12.2020
%
– 0,77 to
– 0,64
23,49 to
36,25
– 0,77 to
– 0,68
23,90 to
36,25
– 0,77 to
– 0,75 to
– 0,75 to
– 0.75
– 0,73
24,13 to
36,25
– 0,73
28,69 to
36,25
– 0,73
36,25
0
2.08
0
2.08
0
0 to 2,08
0 to 2,08
0 to 2,08
0 to 2,08
0
0
0
0
Risk-free interest
rate
Volatility of
Deutsche Börse AG
shares
Dividend yield
Exercise price
%
%
€
The valuation model does not take into account hurdle rates. The volatilities applied correspond to the
market volatilities of comparable options with comparable maturities.
Valuation of LSI and RSU shares
Tranche
Balance as at
31 Dec 2020
Number
2015
2016
2017
2018
2019
2020
Total
1,626
49,096
49,762
56,490
49,363
40,899
247,236
Deutsche
Börse AG
share price as
at
31 Dec 2020
Intrinsic value/
option as at
31 Dec 2020
Fair value/
option as at
31 Dec 2020
Settlement
obligation
Current
provision as at
31 Dec 2020
€
€
€
€m
139.25
139.25
139.25
139.25
139.25
139.25
139.25
139.25
0.00
137.49
139.25 134,89 - 137,49
139.25 132,34 - 137,49
139.25 129,84 - 137,49
139.25 120,30 - 137,49
0.2
6.8
6.6
7.6
6.6
5.5
33.3
€m
0.2
0.9
0.7
0.8
1.6
0.0
4.2
Non-current
provision as at
31 Dec 2020
€m
0.0
5.9
5.9
6.8
5.0
5.5
29.1
Provisions amounting to € 33.3 million were recognised as at 31 December 2020 (31 December 2019:
€ 33.1 million). The total expense for LSI stock options in the reporting period amounted to
€ 5.9 million (31 December 2019: € 10.9 million).
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Executive and Supervisory Boards
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Financial statements
Notes | Notes on the consolidated statement of financial position
Further information
Change in number of LSI and RSU shares allocated
Additions/
Additions/
Additions/
Additions/
Additions/
Additions/
Balance at
31 Dec
(disposals)
Tranche
(disposals)
Tranche
(disposals)
Tranche
(disposals)
Tranche
(disposals)
Tranche
(disposals)
Tranche
2019
2015
2016
2017
2018
2019
2020
Fully
settled
cash
options
Balance at
31 Dec 2020
244,904
4
– 1,118
– 582
– 408
6,893
40,899 – 43,356
247,236
To other
senior
executives
Total
244,904
4
– 1,118
– 582
– 408
6,893
40,899 – 43,356
247,236
Co-Performance Investment Plan (CPIP) and Performance Share Plan (PSP)
Performance Share Plan (PSP)
The PSP was launched in financial year 2016 for members of the Executive Board of Deutsche
Börse AG as well as selected senior executives and employees of Deutsche Börse AG and of participating
subsidiaries. The number of phantom PSP shares to be allocated is calculated based on the number of
shares granted and the increase of net profit for the period attributable to Deutsche Börse AG
shareholders, as well as on the relative performance of the total shareholder return (TSR) on Deutsche
Börse AG’s shares compared with the total shareholder return of the STOXX Europe 600 Financials Index
constituents. The shares are subject to a performance period of five years. The subsequent payment of
the stock bonus will be settled in cash. For further details on this plan, please see the “Principles
governing the PSP and assessing target achievement for performance shares” section in the
remuneration report.
The 100 per cent stock bonus target was calculated in euros for each Executive Board member. The 100
per cent stock bonus target for selected executives and employees of Deutsche Börse AG and
participating subsidiaries is defined by the responsible decision-making bodies. Based on the PSP 100
per cent stock bonus target, the corresponding number of phantom shares for each beneficiary was
calculated by dividing the stock bonus target by the average share price (Xetra closing price) of Deutsche
Börse AG’s shares in the last calendar month preceding the performance period. Any right to payment of
a PSP stock bonus vested only at the end of a five-year performance period.
The final number of Performance Shares was calculated by multiplying the original number of
Performance Shares with the level of overall target achievement. The PSP level of overall target
achievement was based on two performance factors during the performance period: firstly, on the
relative performance of the total shareholder return (TSR) on Deutsche Börse AG’s shares compared with
the total shareholder return of the STOXX Europe 600 Financials Index as the peer group; and secondly,
on the increase of Deutsche Börse AG’s net profit for the period attributable to shareholders of the parent
company. The two performance factors contribute 50 per cent each to calculate overall target
achievement.
The payout amount is calculated by multiplying the final number of performance shares with the average
share price (Xetra closing price) of Deutsche Börse AG’s shares in the last calendar month preceding the
performance period, plus the total of dividend payments made during the performance period based on
the final number of performance shares. The plans are settled in cash.
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Executive and Supervisory Boards
Management report
Financial statements
Notes | Notes on the consolidated statement of financial position
Further information
Co-Performance Investment Plan (CPIP)
In financial year 2015, a new remuneration programme (Co-Performance Investment Plan, CPIP) was
introduced, and the former CEO of Deutsche Börse AG, Carsten Kengeter, was offered a one-time
participation. The appropriate number of phantom shares was calculated based on the number of shares
granted and the increase of Deutsche Börse AG’s net profit for the period attributable to shareholders of
Deutsche Börse AG, as well as on the relative performance of the total shareholder return (TSR) on
Deutsche Börse AG’s shares compared with the total shareholder return of the STOXX Europe 600
Financials Index entities. The performance period for the measurement of the performance criteria
commenced on 1 January 2015 and ends on 31 December 2019. The shares are subject to a
performance period of five years and a waiting period until 31 December 2019. The subsequent
payment of the stock bonus will be settled in cash, by 31 March 2021.
Evaluation of the CPIP and the PSP
The company uses an adjusted Black-Scholes model (Merton model) to calculate the fair value of the
CPIP and PSP stock options
Valuation parameters for CPIP and PSP shares
Term to
31.12.2024 31.12.2023 31.12.2022 31.12.2021 31.12.2020 31.12.2019
Tranche
Tranche
Tranche
Tranche
Tranche
2020
2019
2018
2017
2016
Tranche
2015
Risk-free interest rate
%
– 0.77
– 0.77
– 0.75
– 0.73
– 0.75
Volatility of Deutsche Börse AG shares
%
24.13
25.78
28.69
36.25
29.91
Dividend yield
Exercise price
Relative total shareholder return
Net profit for the period attributable to
Deutsche Börse AG shareholders
%
€
%
0
0
0
0
0
0
0
0
0
0
160.00
170.00
250.00
250.00
250.00
250.00
%
117.00
118.00
142.00
137,00
– 147,00
171,00
– 181,00
172.00
– 0.75
29.91
0
0
The valuation model does not take into account hurdle rates. The volatilities applied correspond to the
market volatilities of comparable options with comparable maturities.
Valuation of CPIP and PSP shares
Tranche
Balance as at
31 Dec 2020
Number
2015
2016
2017
2018
20191)
2020
Total
87,574
141,727
138,051
139,292
80,292
54,084
641,020
Deutsche Börse AG
share price as at
31 Dec 2020
Intrinsic value/
option as at
31 Dec 2020
Fair value/
option as at
31 Dec 2020
Settlement
obligation
Current
provision as at
31 Dec 2020
€
€
€
139.25
139.25
139.25
139.25
139.25
139.25
139.25
150.33
139.25
152.18
139.25
119.94
139.25
139.25
139.25
88.53
58.02
28.45
€m
5.5
21.9
18.9
15.6
5.4
1.5
€m
0
21.9
0
0
0
0
68.8
21.9
Non-current
provision as at
31 Dec 2020
€m
5.5
0.0
18.9
15.6
5.4
1.5
46.9
1) The stock options of the 2019 tranche were granted as part of severance agreements.
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Executive and Supervisory Boards
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Financial statements
Notes | Notes on the consolidated statement of financial position
Further information
Provisions for the CPIP and the PSP amounting to € 68.8 million were recognised at the reporting date
31 December 2020 (31 December 2019: € 63.9 million). Of the provisions, € 17.4 million were
attributable to members of the Executive Board (2019: €11.3 million). The total expense for CPIP and
PSP stock options in the reporting period was € 8.5 million (2019: € 23.9 million). Of that amount, an
expense of €6.0 millionwas attributable to members of the Executive Board (2019: €6.9 million).
Change in number of CPIP and PSP shares allocated
Balance at
31 Dec 2019
Additions/
(disposals)
Tranche
Additions/
(disposals)
Tranche
Additions/
(disposals)
Tranche
Additions/
(disposals)
Tranche
Additions/
(disposals)
Tranche
2016
2017
2018
2019
2020
Balance at
31 Dec 2020
To the Executive Board
460,848
– 1,962
– 3,745
– 4,377
2,999
42,280
496,043
To other senior executives
128,630
3,658
2,115
1,238
– 2,468
11,804
144,977
Total
589,478
1,696
– 1,630
– 3,139
531
54,084
641,020
1) The stock options of the 2019 tranche were granted as part of severance agreements.
For further information on the number of stock options granted to Executive Board members, and on the
remuneration system for Executive Board members, please refer to the remuneration report.
Group Share Plan (GSP)
Employees of Deutsche Börse Group who are not members of the Executive Board or senior executives
have the opportunity to acquire shares of Deutsche Börse AG at a discount under the Group Share Plan
(GSP). Under the GSP tranche for the year 2020, the participating employees could subscribe for up to
50 shares of the Company at a discount of 40 per cent and another 50 shares at a discount of 10 per
cent. The acquired shares are subject to a lock-up period of two years.
The expense of this discount is recognised in the income statement at the grant date. In the reporting
period, an expense totalling € 4,800.0 million (2019: € 4,070.0 million) was recognised in staff
expense for the GSP.
Management Incentive Programme (MIP)
The MIP was set up for the senior management of the Qontigo Group. It grants a non-current
remuneration component in the form of virtual shares of the Qontigo Group. The remuneration is settled
in cash. These are generally accounted for as sharebased payments. The amounts payable to the
beneficiaries are intended to reflect the economic development of the Qontigo Group. The MIP contains
a time-based and a performance-based component. The vesting period is four years and started one year
after closing of the Axioma transaction on 13 September 2019.
Valuation
The value of the virtual shares is determined using a Monte Carlo simulation on the respective balance
sheet date, which appropriately reflects the contract-specific conditions. The underlying simulations
depend on the underlying from which the payment is linked to the beneficiaries of the MIP. The
enterprise value of the Qontigo Group serves as the underlying.
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Executive and Supervisory Boards
Management report
Financial statements
Notes | Notes on the consolidated statement of financial position
Further information
On the basis of the simulations carried out, a discounted average payment of the contractually agreed
payment flows to the respective participants as calculated. The main valuation parameters include the
enterprise value and the expected volatility of the Qontigo Group as well as the expected term and the
contract-specific payment profile.
18. Changes in other provisions
Other provisions
Provisions are recognised if the Group has a present obligation from an event in the past, it is probable
that there will be an outflow of resources embodying economic benefits to settle the obligation and the
amount of this obligation can be estimated reliably. The amount of the provision corresponds to the best
estimate of the expenditure required to settle the obligation at the reporting date. If it is no longer
probable that an otflow of resources embodying economic benefits will be required to settle the
obligation, the provision will be reversed.
A restructuring provision is only recognised when an entity has a detailed formal plan for the
restructuring and has raised a valid expectation in those affected that the restructuring measures will be
implemented, for example by starting to implement that plan or by announcing its principal features to
those affected by it. The restructuring provisions and the provisions for contractually agreed early
retirement benefits and severance payments are recognised in other provisions.
Changes in other provisions (part 1)
Balance as at 1 Jan 2020
Changes in the basis of consolidation
Reclassification
Utilisation
Reversal
Additions
Currency translation
Interest
Share-based
Interest on
Bonuses
€m
payments
€m
118.3
3.2
– 8.8
– 92.7
– 9.1
114.2
– 2.3
0
101.3
0
7.4
– 12.8
– 3.7
20.5
– 0.2
0
taxes
€m
70.4
0
1.5
0
– 11.7
32.0
0
0
Balance as at 31 Dec 2020
122.8
112.6
92.1
Restructuring
and
efficiency
measures
€m
108.6
0
0
– 26.6
– 8.9
4.8
0
1.5
79.5
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Financial statements
Notes | Notes on the consolidated statement of financial position
Further information
Changes in other provisions (part 2)
Other tax
provisions
Anticipated
Losses
Other personnel
provisions
Balance as at 1 Jan 2020
Changes in the basis of consolidation
Reclassification
Utilisation
Reversal
Additions
Currency translation
Interest
Balance as at 31 Dec 2020
€m
34.1
0.2
– 0.3
– 0.6
– 13.6
19.1
0.0
0
38.9
€m
8.7
0
0
0
– 0.7
0.0
– 0.1
0
7.9
Miscellaneous
€m
€m
9.6
0
– 6.0
– 1.7
– 3.9
6.4
0.1
0
4.5
16.4
0.7
– 0.1
– 1.8
– 0.4
9.1
– 0.4
0
23.4
The other non-current and current provisions amount to a total of €481.7 million (31 December
2019: €475.9 million). The non-current provisions of €168.0 million (31 December 2019:
€225.2 million) essentially have a residual lifetime between one to five years. Furthermore current
provisions exist for €313.7 million (31 December 2019: €250.7 million).
Provisions for restructuring and efficiency measures include provisions for contractually agreed early
retirement benefits and severance payments as well as expenses directly related to restructuring
measures. All provisions for implementing the restructuring plan (31 December 2019: €16.8 million)
were reclassified as provisions for early retirement benefits and provisions for severance payments or
reversed in the reporting period.
For details of share-based payments, see note 17.
19. Other liabilities
Deutsche Börse Group reports the following contract liabilities resulting from contracts with customers:
Contract liabilities
Contract liabilities long-term
Contract liabilities short-term
Total
31 Dec 2020
€m
13.8
30.5
44.3
31 Dec 2019
€m
20.2
21.5
41.7
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Financial statements
Notes | Notes on the consolidated statement of financial position
Further information
Composition of other current liabilities
Liabilities from CCP positions
Tax liabilities (excluding income taxes)
Contract liability
Vacation entitlements, flexitime and overtime credits
Social security liabilities
Liabilities to employees
Liabilities to supervisory bodies
Special payments and bonuses
Deferred income
Miscellaneous
Total
31 Dec 2020
31 Dec 2019
€m
415.1
42.8
30.5
29.9
9.1
6.7
3.0
1.4
0.4
5.8
€m
210.6
50.6
21.5
27.7
8.3
4.2
3.3
0
2.9
3.8
544.7
332.9
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Other disclosures
20. Notes on the consolidated cash flow statement
Composition of other non-cash income
Subsequent measurement of non-derivative financial instruments
Reversal of discount and transaction costs from long-term financing
Equity method measurement
Impairment of financial instruments
Subsequent measurement of derivatives
Contract liabilities
Gains on the disposal of subsidiaries and equity investments
Miscellaneous
Total
Reconciliation to cash and cash equivalents
2020
€m
39.5
8.9
– 17.2
2.1
101.5
2.6
0
6.3
143.6
2019
€m
– 16.0
3.0
3.9
1.8
26.4
26.3
– 1.0
8.0
52.5
Cash and cash equivalents at Deutsche Börse Group comprise cash and bank balances – to the extent
that these do not result from reinvesting current liabilities from cash deposits by market participants – as
well as receivables and liabilities from banking business with an original maturity of three months or
less.
Reconciliation to cash and cash equivalents
Restricted bank balances
Other cash and bank balances
Net position of financial instruments held by central counterparties
Current financial instruments measured at amortised cost
less financial instruments with an original maturity exceeding 3 months
Current financial liabilities measured at amortised cost
less financial instruments with an original maturity exceeding 3 months
Current liabilities from cash deposits by market participants
Cash and cash equivalents
31 Dec 2020
€m
31 Dec 2019
€m
38,420.1
29,988.7
1,467.3
95.0
888.1
890.0
16,225.1
15,381.6
– 1,919.7
– 1,339.7
– 14,630.0
– 14,225.4
1,037.7
317.9
– 38,188.8
– 29,755.8
2,506.7
2,145.5
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Further information
Changes in liabilitites arising from financing activitities
Balance as at 1 Jan 2019
Lease payments (IFRS 16)
Acquisition from business combinations
Additions
Exchange rate differences
Other
Balance as at 31 Dec 2019
Lease payments (IFRS 16)
Acquisition from business combinations
Additions
Repayments
xchange rate differences
Other
Balance as at 31 Dec 2020
21. Earnings per share
Bonds issued
€m
2,283.2
0
0
0
0
3.0
2,286.2
0
0
948.2
– 602.9
0
5.5
Leasing
liabilities
€m
278.1
– 42.6
13.2
123.0
0
8.4
380.1
– 47.4
2.9
73.3
– 0.7
0
0.7
2,637.0
408.7
Under IAS 33, earnings per share are calculated by dividing the net profit for the period attributable to
Deutsche Börse AG shareholders (net income) by the weighted average number of shares outstanding.
In order to determine diluted earnings per share, potentially dilutive ordinary shares that may be
acquired under the share-based payment programmes (see also note 17) were added to the average
number of shares. In order to calculate the number of potentially dilutive ordinary shares, the exercise
prices were adjusted for the fair value of the services still to be provided.
In order to determine diluted earnings per share, the 2014 Long-term Sustainable Instrument (LSI)
tranche, for which cash settlement has not been resolved, is assumed to be settled with equity
instruments – regardless of actual accounting in accordance with IFRS 2. The following potentially
dilutive rights to purchase shares were outstanding as at 31 December 2020:
Calculation of the number of potentially dilutive ordinary shares
Tranche
Exercise price
Adjustment of
the exercise
price according
to IAS 33
Average number
of outstanding
options
Average price
for the period1)
20142)
Total
€
0
€
0
31 Dec 2020
€
440
126.10
Number of
potentially
dilutive
ordinary shares
31 Dec 2020
0
0
1) Volume-weighted average price of Deutsche Börse AG shares on Xetra calculated on a daily basis for the period 1 January to 31 December 2020.
2) This relates to share subscription rights within the scope of the Long-term Sustainability Instrument (LSI) for senior executives. The quantity of subscription rights
under the 2014 LSI tranche may still change from the quantity reported as at the reporting date, since subscription rights will only be granted in future financial
years.
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Financial statements
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Further information
As the volume-weighted average share price calculated on a daily basis was higher than the adjusted
exercise price for the 2014 tranche, these stock options are considered to be dilutive under IAS 33 as at
31 December 2020.
Calculation of earnings per share (basic and diluted)
Number of shares outstanding at beginning of period
Number of shares outstanding at end of period
Weighted average number of shares outstanding
Number of potentially dilutive ordinary shares
2020
2019
183,429,035
183,347,045
183,521,257
183,429,035
183,452,436
183,381,196
0
3,252
Weighted average number of shares used to compute diluted earnings per share
183,452,436
183,384,448
Net profit for the period attributable to Deutsche Börse AG shareholders (€m)
1,079.9
1003.9
Earnings per share (basic) (€)
Earnings per share (diluted) (€)
5.89
5.89
5.47
5.47
As in the previous year, there were no subscription rights for Deutsche Börse AG shares in 2020 that
were excluded from the calculation of the weighted average of potentially dilutive shares for having a
dilutive effect during the reporting year ending on the reporting date.
22. Segment reporting
Deutsche Börse divides its business into seven segments: This structure serves as a basis for the Group’s
internal management and financial reporting (see the table entitled “Internal organisational and reporting
structure” for details).
Segment reporting (part 1)
Net revenue (€m)
Operating costs (€m)
EBITDA (€m)
EBITDA margin (%)
Depreciation, amortisation and
impairment losses (€m)
Eurex (financial
EEX (commodities)
derivatives)
360T (foreign
exchange)
Xetra (cash equities)
2020
2019
2020
2019
2020
2019
2020
2019
1,110.3 1,009.3
302.2
289.3
101.5
92.1
391.7
329.3
– 373.1 – 330.9 – 174.3 – 169.6
– 53.9
– 57.7
– 158.8 – 151.5
738.8
683.4
127.0
119.4
47.6
34.4
258.7
181.6
67.0
68.0
42.0
41.3
47.0
37.4
66.0
55.0
– 55.3
– 55.8
– 35.6
– 31.4
– 20.4
– 19.3
– 23.7
– 20.5
EBIT (€m)
683.5
627.6
91.4
88.0
27.2
15.1
235.0
161.1
Capital expenditure1) (€m)
46.1
38.4
21.4
28.6
Employees (as at 31 December)
1,661
1,437
934
829
8.6
272
6.0
15.3
21.6
260
739
738
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Financial statements
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Further information
Segment reporting (part 2)
Net revenue (€m)
Operating costs (€m)
EBITDA (€m)
EBITDA margin (%)
Depreciation, amortisation and
impairment losses (€m)
Clearstream
(post-trading)
IFS (investment fund
services)
Qontigo (index and
analytics business)
Group
2020
2019
2020
2019
2020
2019
2020
2019
827.2
842.7
232.8
183.1
248.1
190.2 3,213.8 2,936.0
– 367.3
– 343.4 – 117.5 – 110.3
– 123.8 – 101.0 – 1,368.7 – 1,264.4
458.0
497.5
115.2
72.8
124.1
89.2 1,869.4 1,678.3
55.0
59.0
49.0
39.8
50.0
46.9
58.0
57.2
– 72.5
– 67.5
– 28.5
– 19.2
– 28.3
– 12.5 – 264.3
– 226.2
EBIT (€m)
385.5
430.0
86.7
53.6
95.8
76.7 1,605.1 1,452.1
Capital expenditure1) (€m)
68.4
61.0
27.5
22.1
Employees (as at 31 December)
2,136
2,016
911
887
8.1
585
7.0
195.4
184.7
608
7,238
6,775
1) Excluding investments from business combinations.
Sales revenue is presented separately by external sales revenue and internal (inter-segment) sales
revenue. Inter-segment services are charged on the basis of measured quantities or at fixed prices,
e.g. the provision of data by the Eurex (financial derivatives) segment to the Data segment. For an
overview of intercompany revenes, see note 4. Services between the segments are charged on the basis
of assessed quantities or at fixed prices.
Deutsche Börse Group’s business model – and that of its segments – is focused on an internationally
operating participant base and pricing does not differ depending on the customer’s location. From a
price, margin and risk perspective, this means that it is not decisive whether sales revenue is generated
from German or non-German participants.
The risks and returns from the activities of the subsidiaries operating within the economic environment
of the European Monetary Union (EMU) do not differ significantly from each other on the basis of the
factors to be considered in identifying information on geographical regions under IFRS 8. As a result,
Deutsche Börse Group has designated the following regional segments: the eurozone, the rest of Europe,
America and Asia-Pacific.
Sales revenue is allocated to the individual regions according to the customer’s domicile, while
investments and non-current assets are allocated according to the company’s domicile and employees
according to their location.
As described above, the analysis of sales is based on the direct customer’s billing address. This means
e.g. that sales to an American investor trading a product with an Asian underlying via a European
clearing member are classified as European sales.
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Financial statements
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Further information
Information on geographical regions
Sales revenue1)
Investments2)
Non-current assets3)4)
Number of employees
2020
2019
2020
2019
2020
2019
2020
2019
€m
€m
€m
€m
€m
€m
2,047.8 1,718.1
172.8
176.1 4,008.7 4,043.4
5,042
1,063.2
999.2
15.4
3.7 1,241.0
455.1
1,449
289.1
231.5
183.9
168.5
6.5
0.7
4.8 1,061.6 1,029.9
0.1
31.7
22.5
435
312
4,721
1,360
411
283
Euro zone
Rest of Europe
America
Asia-Pacific
Total of all regions
3,584.0 3,117.3
195.4
184.7 6,343.0 5,550.9
7,238
6,775
Consolidation of internal net revenue
– 64.7
– 63.1
Group
3,519.3 3,054.2
195.4
184.7 6,343.0 5,550.9
7,238
6,775
1) Including countries in which more than 10 per cent of sales revenue was generated: UK (2020: €732.1 million, 2019: €704.2 million) and Germany (2020:
€910.9 million, 2019: €769.6 million)
2) Excluding goodwill and right-of-use assets from leasing.
3) Including countries in which more than 10 per cent of assets are held: Germany (2020: €3,648.1 million, 2019: €3,634.1 million), Switzerland (2020:
€1,210.1 million, 2019: €427.2 million) and United States (2020: €1,061.6 million, 2019: €1,029.9 million).
4) These include intangible assets, property, plant and equipment, and investments in associates and joint ventures.
23. Financial risk management
Deutsche Börse Group presents the qualitative disclosures required by IFRS 7, such as the type and
extent of risks from financial instruments, as well as the goals, strategies and processes for risk
management, in detail in the combined management report (see explanations in the risk report).
Financial risks arise at Deutsche Börse Group mainly in the form of credit risk. To a smaller extent, the
Group is exposed to market risk. Financial risks are quantified using the economic capital concept
(please refer to the risk report for detailed disclosures). Required economic capital is assessed on a
99.98 per cent confidence level for a one-year holding period. It is compared with the Group’s liable
equity capital adjusted for intangible assets so as to test the Group’s ability to absorb extreme and
unexpected losses. Required economic capital (REC) for financial risk is calculated at the end of each
month and amounted to €764.0 million as at 31 December 2020, whereby €657.0 million stems from
credit risk and €107.0 million stems from market risk.
The Group evaluates its financial risk situation on an ongoing basis. In the view of the Executive Board,
no threat to the continued existence of the Group can be identified at this time.
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Further information
Credit risk
Credit risk of financial instruments
Carrying amounts –
maximum risk exposure
Collateral
Segment
Amount at
31 Dec 2020
Amount at
31 Dec 2019
Amount at
31 Dec 2020
Amount at
31 Dec 2019
€m
€m
€m
€m
Collateralised cash investments
Reverse repo transactions
Eurex (financial derivatives)1)
574.9
91.2
580.52)
100.82)
Clearstream (post-trading)
6,176.7
6,394.3
6,346.03)
6,552.23)
6,751.6
6,485.5
6,926.5
6,653.0
Uncollateralised cash investments
Money market lendings –
central banks
Eurex (financial derivatives)
31,711.6
26,038.8
Clearstream (post-trading)
6,291.8
5,998.6
Group
3,809.7
3,989.7
Eurex (financial derivatives)
187.5
0
Clearstream (post-trading)
148.3
437.2
Clearstream (post-trading)
2,252.4
1,604.5
Money market lendings –
other counterparties
Balances on nostro accounts and
other bank deposits
Securities
Clearstream (post-trading)
1,186.3
1,266.9
Group
3,603.7
748.7
Eurex (financial derivatives)
Group
Group
7.0
14.94)
37.1
4.2
14.04)
28.4
49,250.3
40,131.0
Fund assets
Loans for settling securities
transactions
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Technical overdraft facilities
Clearstream (post-trading)
Automated Securities Fails
Financing6)
Clearstream (GSF)
267.7
427.37)
231.7
288.87)
n / A5)
560.6
n / A5)
316.6
ASLplus securities lending6)
Clearstream (GSF)
47,964.3
58,008.6
51,895.4
58,228.6
48,659.3
58,529.1
52,456.0
58,545.2
Total
104,661.2
105,145.6
59,382.5
65,198.2
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Further information
Carrying amounts –
maximum risk exposure
Collateral
Segment
Amount at
31 Dec 2020
Amount at
31 Dec 2019
31 Dec 2020
Amount at
Amount at
€m
€m
€m
31 Dec 2019
€m
Balance brought forward
104,661.2
105,145.6
59,382.5
65,198.2
Other financial instruments
Other loans
Other assets
Trade receivables
Other receivables
Group
Group
Group
Clearstream (post-trading)
Eurex (financial derivatives)
Group
Other financial assets at fair value
Group
Financial instruments
held by central counterparties
Derivatives
Total
0.3
15.3
625.8
147.2
697.0
27.8
7.6
0.3
23.7
454.4
43.1
48.4
21,6
0.4
1,521.0
591.9
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
62,467.38)
52,889.48)
79,747.69)
66,680.99)
8.4
1.4
0
0
168,657.9
158,628.3
139,130.1
131,879.1
1) Presented in the items “restricted bank balances” and “other cash and bank balances”.
2) Thereof none pledged to central banks (2019: nil).
3) Thereof none pledged to central banks (2019: €274.0 million).
4) The amount includes collateral totalling €5.1 million (2019: €5.1 million)
5) The portfolio of deposited collateral is not directly attributed to any utilisation, but is determined by the scope of the entire business relationship and the limits
granted.
6) Off-balance-sheet items
7) Meets the IFRS 9 criteria for a financial guarantee contract
8) Net value of all margin requirements resulting from executed trades at the reporting date as well as default fund requirements: this figure represents the risk-
oriented view of Eurex Clearing AG and European Commodity Clearing AG, whilst the carrying amount of the “financial instruments held by central counterparties”
item in the balance sheet shows the gross amount of the open trades according to IAS 32.
9) Collateral value of cash and securities collateral deposited for margins, covering the net value of all margin and default fund requirements
Cash investments
Deutsche Börse Group is exposed to credit risk in connection with the investment of cash funds.
Clearstream receives cash deposits from its customers in various currencies, and invests these cash
deposits in money market instruments. Eurex Clearing AG receives cash collateral mainly in its clearing
currencies EUR and CHF.
The Group mitigates such risks by investing short-term funds either – to the extent possible – on a
secured basis, e.g. via reverse repurchase agreements, or by depositing them with central banks.
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According to the treasury policy, eligible collateral mainly consists of highly liquid financial instruments
with a minimum rating of AA– (Standard & Poor’s/Fitch) or Aa3 (Moody’s) issued or guaranteed by
governments or supranational institutions.
Unsecured cash investments are permitted only with counterparties with impeccable credit ratings within
the framework of defined counterparty credit limits. Counterparty credit risk is monitored on the basis of
an internal rating system.
The fair value of securities received under reverse repurchase agreements was €6,926.6 million
(2019: €6,653.0 million). Clearstream Banking S.A. and Eurex Clearing AG are entitled to pledge the
eligible securities received to their central banks in order to make use of the central banks’ monetary
policy instruments.
As of 31 December 2020 Clearstream Banking S.A. had pledged securities from the Clearstream
investment portfolio valued at €168.2 million to central banks as collateral for credit lines from the
central banks. In the reporting period all of these securities stem from Clearstream investment portfolio
(in 2019 €202.7 million relates to Clearstream’s investment portfolio and €274.0 million relate to
reverse repo agreements).
As at 31 December 2020, Eurex Clearing AG had pledged no securities to central banks.
Loans for settling securities transactions
Clearstream (post-trading) grants customers intraday technical overdraft facilities to maximise settlement
efficiency. These settlement facilities are subject to internal credit review procedures. They are revocable
at the discretion of the Clearstream subgroup and are in general fully secured. As of 31 December 2020
they came to €106.2 billion (2019: €115.5 billion). Of the total, €5.5 billion (2019: €3.4 billion) is
unsecured and only relates to credit lines granted to selected central banks and multilateral development
banks in compliance with the CSDR exemption as per article 23 of Commission Delegated Regulation
(EU) 2017/390. Actual outstandings at the end of each business day generally represent a small
fraction of the facilities and amounted to €267.7 million as at 31 December 2020 (2019:
€231.7 million); see note 12.
Clearstream (collateral management) also guarantees the risk resulting from the Automated Securities
Fails Financing programme it offers to its customers, where Clearstream Banking S.A. acts as an
intermediary between borrower and lender. This risk is secured. As of 31 December 2020 the
guarantees under this programme amounted to €427.3 million (2019: €288.8 million). Collateral
received by Clearstream Banking S.A. in connection with these loans amounted to €560.6 million
(2019: €316.6 million).
Under the ASLplus securities lending programme, Clearstream Banking S.A. had securities borrowings
from various counterparties totalling €47,964.3 million as at 31 December 2020 (2019:
€58,008.6 million). These securities were fully lent to other counterparties. Collateral received by
Clearstream Banking S.A. in connection with these loans amounted to €51,895.4 million (2019:
€58,228.6 million). This collateral was pledged to the lender, whilst Clearstream Banking S.A. remains
its legal owner.
In 2019 and 2020, no losses from credit transactions occurred in relation to any of the transaction types
described.
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Financial instruments of the central counterparties
To safeguard the Group’s central counterparties against the risk of default by a clearing member, the
clearing conditions require the clearing members to deposit margins in the form of cash or securities on
a daily basis or an intraday basis in the amount stipulated by the respective clearing house. Additional
safety mechanisms of the Group’s central counterparties are described in detail in the risk report.
Trade receivables
Trading, settlement and custody fees are generally collected without delay by direct debit. Fees for other
services, such as the provision of data and information, are settled mainly by transfer. Trade receivables
are analysed using an expected credit loss model based on the simplified approach as outlined in
IFRS 9. To measure the expected credit loss, trade receivables and contract assets have been grouped
based on the days past due. The trade receivables share the main risk characteristics. The expected loss
amount has been determined by applying the lifetime expected loss approach. The expected loss rates
are based on the payment profiles over a period of five years and the loss profile experienced over that
period. As of 31 December 2020 there were no contract assets (2019: nil).
Loss allowances for trade receivables as at 31 December 2020
<30 days
past due
€m
<60
days past
due
€m
<90
days past
due
€m
<120
days past
due
€m
<360
days past
due
€m
>360
days past
due
€m
Insol-
vent
€m
Total
€m
Expected loss rate
Trade receivables
Loss allowance
0.1%
0.0%
0.1%
1.3%
5.4%
81.9%
100%
33.0
13.3
5.9
3.2
15.0
0
0
0
0.1
0.8
7.9
6.5
1.8
80.1
1.8
9.2
Loss allowances for trade receivables as at 31 December 2019
<30 days
past due
€m
<60
days past
due
€m
<90
days past
due
€m
<120
days past
due
€m
<360
days past
due
€m
>360
days past
due
€m
Insol-
vent
€m
Total
€m
Expected loss rate
Trade receivables
Loss allowance
0.1%
0.0%
0.1%
1.2%
5.4%
81.9%
100%
24.6
13.4
5.8
4.4
19.9
0
0
0
0.1
1.1
5.7
4.7
1.3
75.1
1.3
7.1
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Executive and Supervisory Boards
Management report
Financial statements
Notes | Other disclosures
Further information
Trade receivables are written off when there is no reasonable expectation of recovery. The following
criteria are used for the assessment of derecognition:
◼ Insolvency proceedings are not started for want of assets.
◼ Insolvency proceedings have not resulted in any payment for a period of three years, and there is no
indication that any amount will be received going forward.
◼ Enforcement activities are not pursued by Deutsche Börse Group due to cost-benefit analysis, or
Deutsche Börse Group has tried unsuccessfully to collect the receivable for a period of three years.
In 2019, there were no significant write-offs due to customer defaults. Moreover, no significant
payments were received in 2020 for receivables which had previously been written off (2019: nil).
Debt securities
All of the entity’s debt securities measured at amortised cost are considered to have low credit risk, and
the loss allowance recognised during the period was therefore limited to twelve months’ expected losses.
The Group considers “low credit risk” for listed bonds to be an investment grade credit rating granted by
an external rating agency. All Deutsche Börse Group debt securities measured at fair value through OCI
are assigned to stage 1 on initial recognition and are reviewed regularly for changes in credit risk on the
basis of their rating. The expected loss for listed debt securities from Deutsche Börse Group is
determined using the default rates provided by a rating agency.
Development of the loss allowance
Development of the loss allowance
Closing loss allowance as at 1 January 2019
Increase in the allowance recognised
in profit or loss during the period
Decrease in the allowance recognised
in profit or loss during the period
Closing loss allowance as at 31 December 2019
Increase from business combinations
Increase in the allowance recognised
in profit or loss during the period
Decrease in the allowance recognised
in profit or loss during the period
Closing loss allowance as at 31 December 2020
Debt securities
Trade receivables
Trade receivables
Stage 1
Stage 1/2
Stage 3
€m
0.1
0
0
0
0
0.3
0
0.3
€m
0.9
0.6
€m
4.8
1.8
– 0.4
– 0.6
1.1
0.1
0.3
6.0
1.0
2.1
– 0.6
– 0.8
0.9
8.3
Total
€m
5.8
2.4
– 1.0
7.1
1.1
2.7
– 1.4
9.5
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Executive and Supervisory Boards
Management report
Financial statements
Notes | Other disclosures
Further information
Credit risk concentrations
Deutsche Börse Group’s business model and the resulting business relationships mean that, as a rule,
credit risk is concentrated on the financial services sector. Potential concentrations of credit risk are
limited by application of counterparty, group and country credit limits. Collateral and currency
concentrations are also monitored.
Management of credit risk concentration, including collateral concentration, and so-called large
exposures, is conducted in compliance with applicable regulatory requirements such as those arising
from, among others, articles 387–410 of Regulation (EU) 575/2013 (Capital Requirements Regulation,
CRR), article 47 paragraph 8 of Regulation (EU) 648/2012 (European Market Infrastructure Regulation,
EMIR) and respectively applicable national requirements (see also note 14 for an explanation of
regulatory capital requirements). Requirements of concentration risks arising from Regulation (EU)
909/2014 (Central Securities Depository Regulation, CSDR) have been implemented as part of Deutsche
Börse Group’s affiliated CSDs’ authorisation under article 16 CSDR.
The required economic capital (value at risk (VaR) with a 99.98 per cent confidence level) for credit risk
is calculated monthly for each day and amounted to €657.0 million as at 31 December 2020
(2019: €510.0 million).
Deutsche Börse Group also applies additional methods in order to detect credit concentration risks. It
analyses the impact of a default by its two largest counterparties with unsecured exposures and stressed
recovery parameters. In addition, analyses are carried out for the Group’s top 5 and top 10
counterparties, based on the risk-weighted exosures of the individual counterparties. All the
concentration metrics have dedicated early warning thresholds and limits and are part of the quarterly
risk reporting to the Executive Board. As in the previous year, no material adverse credit concentrations
were detected in 2020.
Market risk
Market risk arises from changes in interest rates, foreign-exchange rates and other market prices.
Deutsche Börse Group is generally only affected to a limited extent by market risk. The required
economic capital for market risk is calculated on a monthly basis. As of 31 December 2020 the
economic capital for market price risks was €107.0 million (2019: €117.0 million).
In the 2020 financial year, no impairment losses (2019: nil) were recognised in profit or loss for
strategic investments that are not included in the VaR for market risk.
Interest rate risk
Changes in market interest rates may affect Deutsche Börse Group’s net profit for the period attributable
to Deutsche Börse AG shareholders. This risk arises whenever interest terms of financial assets and
liabilities are different.
Interest rate sensitive assets include the Group’s money market and investment portfolios, whilst interest
rate sensitive liabilities mainly consist of short-term debt instruments. Interest rate risk from long-term
liabilities of Deutsche Börse AG is mitigated through issuance of fixed-coupon bonds.
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Executive and Supervisory Boards
Management report
Financial statements
Notes | Other disclosures
Further information
To refinance its existing indebtedness Deutsche Börse AG issued debt securities with a nominal volume
of €600.0 million in June 2020. This enabled the company to refinance its outstanding hybrid loan of
€600 million, which was called and redeemed in full in November 2020. In addition, Clearstream
Banking AG issued a five-year senior preferred loan with a nominal volume of €350.0 million in
November 2020 as part of the CSDR, in order to increase its qualifying liquid funds. The net proceeds of
the loan will be reinvested in line with the financial risk policy in secure assets, to minimise credit and
market risks. For further details of the outstanding bonds issued by Deutsche Börse Group, see the “Net
assets” section in the combined management report.
Cash received as deposits from market participants is invested mainly via short-term reverse repos and
in the form of overnight deposits at central banks, limiting the risk of a negative impact due to a changed
interest rate environment. Negative interest rates resulting from reinvestments of these cash deposits are
passed on to the respective Clearstream (post-trading) customers after applying an additional margin.
For Eurex Clearing AG, interest rates on cash collateral are in principle calculated based on a predefined
market benchmark rate per currency after deducting an additional spread per currency. In exceptional
cases such as market disruption, Eurex Clearing AG reserves the right to calculate interest rates on cash
collateral based on the realised interest rate.
Group entities may furthermore invest their own capital and part of customer cash balances in high-
quality liquid bonds. The bond portfolio consists mostly of variable-rate instruments, which leads to a
comparably low interest rate risk for the Group.
The risk arising from interest-earning assets and interest-bearing liabilities is monitored on each business
day and limited by using a system which includes mismatch limits in combination with interest rate risk
limits and stop-loss limits. The interest rate risk limits determine the acceptable maximum loss caused
by a hypothetical adverse yield curve shift. The stop-loss limits define the fair value of a portfolio
triggering an ad hoc review and risk-reducing actions.
Interest rate swaps as well as swaptions might be used to hedge interest rate risks. As of the reporting
date, there are no hedging relationships with regards to interest rate risk in place.
Foreign-exchange rate risk
Measuring and managing foreign-exchange risk is important for reducing Deutsche Börse Group’s
exposure to exchange rate movements. The three main types of foreign-exchange risk that Deutsche
Börse Group is exposed to are cash flow-, translation- and transaction-related foreign-exchange risk.
Cash flow risk reflects the risk of fluctuations in Deutsche Börse Group’s present value of future
operating cash flows from foreign-exchange movements. Translation risk comprises effects from the
valuation of the Group’s assets and liabilities in foreign currencies. Finally, transaction risk is closely
related to cash flow risk; it may arise through changes in the structure of Deutsche Börse Group’s asset
and liabilities in foreign currencies.
The Group operates internationally and is, to a limited extent, exposed to foreign-exchange risk, primarily
in US$, CHF, £ and CZK. Exchange rate fluctuations may affect the Group’s profit margins and the value
of assets and liabilities denominated in a currency that is not the functional currency of the relevant
Group entity. Respective currency risks arise mainly from operating income and expenses denominated
in a currency other than the functional currency, inter alia from that portion of the Clearstream (post-
trading) segment’s sales revenue and treasury result from banking business that is directly or indirectly
in US$. The Clearstream (post-trading) segment generated 14 per cent of its revenue and treasury result
from banking business directly or indirectly in US$ (2019: 20 per cent).
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Executive and Supervisory Boards
Management report
Financial statements
Notes | Other disclosures
Further information
Currency mismatches are avoided to the maximum extent possible. All types of foreign-exchange risks
are measured on a regular basis and monitored on a Group as well as single entity level. Limits are
defined for cash flow and translation risk. Deutsche Börse Group’s treasury policy defines risk limits
which take into account historic foreign-exchange rate fluctuations. Any exposure exceeding those limits
must be hedged. Foreign-exchange exposures below the defined limits may also be hedged.
Management of foreign-exchange risks is in principle based on the Group level. Hedging may take place
on a single entity level if foreign-exchange risk threatens the viability of the single entity.
To eliminate foreign-exchange risks, Deutsche Börse Group uses financial instruments to hedge existing
or highly probable forecast transactions. The Group may use foreign-exchange forwards, foreign-
exchange options as well as cross-currency swaps to hedge the exposure to foreign-exchange risk. Under
the Group’s policy, the critical terms of forwards and options must align with the hedged items.
In 2020, Deutsche Börse AG entered into FX derivative contracts to hedge the foreign currency exposure
associated to transaction risk. Hereby, the cash flow risk arising from the time gap between signing the
contracts and the actual payment out of the transaction was hedged. Cash flow hedge accounting was
applied to this hedging.
In addition, for Clearstream (post-trading), the policy stipulates that intraperiod open net foreign-
exchange positions are closed out when they exceed €15.0 million. This policy was complied with as in
the previous year; as at 31 December 2020, there were no significant net foreign-exchange positions
(2019: nil).
Other market risks
Market risk also arises from investments in bonds, investments in funds, futures within the framework of
contractual trust arrangements (CTAs) and from the Clearstream Pension Fund in Luxembourg. For the
CTAs, the investment is protected by a pre-defined floor, which reduces the risk of extreme losses for
Deutsche Börse Group. In addition, there are equity price risks arising from strategic equity investments.
Liquidity risk
For the Group, liquidity risk may arise from potential difficulties in renewing maturing financing, such as
commercial paper, issued bonds as well as bilateral and syndicated credit facilities. In addition,
financing required for unexpected events may result in a liquidity risk. Most of the Group’s cash
investments are short-term to ensure that liquidity is available, should such a financing need arise.
Eurex Clearing AG and Clearstream may invest stable customer balances for a maximum of one year in
secured money market products, or in high-quality securities with a remaining maturity of less than ten
years for Clearstream and less than five years for Eurex Clearing, subject to strict monitoring of mismatch
and interest rate limits. There is an exception for UK gilts which may have a remaining term to maturity
of up to 30 years. Term investments can be transacted via reverse repurchase agreements against highly
liquid collateral that can be deposited with the central bank and used as a liquidity buffer if required.
Eurex Clearing AG remains almost perfectly matched with respect to the durations of customer cash
margins received and respective investments.
264
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Executive and Supervisory Boards
Management report
Financial statements
Notes | Other disclosures
Further information
The companies of Deutsche Börse Group have the following credit lines at their disposal, which were not
utilised as of the balance sheet date.
Contractually agreed credit lines
Amount at
Amount at
Company
Purpose of credit line
Currency
31 Dec 2020
Deutsche Börse AG
Eurex Clearing AG
Working capital1)
Settlement
Settlement
Settlement2)
Clearstream Banking S.A.
Working capital1)
Settlement2)
Settlement2)
Settlement2)
European Energy Exchange AG
Working capital
Axioma Inc.
Settlement
Settlement
Working capital
€
€
Fr.
US$
€
€
US$
£
€
€
£
US$
m
600.0
900.0
200.0
300.0
750.0
1,250.0
3,050.0
350.0
22.0
81.6
1.0
29.1
31 Dec 2019
m
605.0
1,170.0
200.0
300.0
750.0
1,250.0
3,050.0
350.0
22.0
0
1.0
50.0
1) €400.0 million of Deutsche Börse AG’s working capital credit lines is a sub-credit line of Clearstream Banking S.A.’s €750.0 million working capital credit line.
2) Including committed foreign exchange swap lines and committed repo lines.
For refinancing purposes, Eurex Clearing AG and the Clearstream Banking S.A. can pledge eligible
securities with their respective central banks. Clearstream Banking S.A. has a bank guarantee (letter of
credit) in favour of Euroclear Bank S.A./N.V. issued by an international consortium to secure daily
deliveries of securities between Euroclear Bank S.A./N.V. and Clearstream Banking S.A. This guarantee
amounted to US$3.0 billion as at 31 December 2020 (2019: US$ 3.0 billion). Euroclear Bank
S.A./N.V. has also issued a guarantee in favour of Clearstream Banking S.A. amounting to
US$3.0 billion (2019: US$3.0 billion).
A commercial paper programme offers Deutsche Börse AG an opportunity for flexible, short-term
financing, involving a total facility of €2.5 billion in various currencies. At the end of the year there was
no commercial paper outstanding (2019: nil).
Clearstream Banking S.A. also has a commercial paper programme with a programme limit of
€1.0 billion, which is used to provide additional short-term liquidity. As of 31 December 2020 it had
issued commercial paper with a nominal volume of €546.4 million (2019: €311.9 million).
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Executive and Supervisory Boards
Management report
Financial statements
Notes | Other disclosures
Further information
In 2019, Standard & Poor’s confirmed Deutsche Börse AG’s AA credit rating with a stable outlook. At
year-end 2020 Deutsche Börse AG was one of only two DAX®-listed companies awarded an AA rating by
S&P. Deutsche Börse AG’s commercial paper programme also had the highest short-term rating of A–1+.
The AA rating of Clearstream Banking S.A. was confirmed with a stable outlook by the rating agencies
Fitch and Standard & Poor’s in 2020. S&P also rated Clearstream Banking AG as AA in November
2020. For further details on the rating of Deutsche Börse Group, see the “Financial position” section in
the combined management report.
Maturity analysis of financial instruments (1)
Contractual maturity
Not more
than 3
months
More than 3
months but
not more
than 1 year
More than 1
year but not
more than 5
years
Reconcili-
ation to
carrying
amount
Over 5
years
Sight
Carrying
amount
31 Dec 2020
Mio. €
Mio. €
Mio. €
Mio. €
Mio. €
Mio. €
Mio. €
6.8
38.9
2,239.0
1,477.6
– 287.9
3,474.4
Non-derivative financial liabilities
Non-current financial liabilities
measured at amortised cost
thereof lease liabilities
Non-current financial liabilities at fair
value through profit or loss
0
0
0
Trade payables
0
388.6
13,999.7
409.4
219.2
Current financial liabilities measured at
amortised cost
thereof lease liabilities
Current financial liabilities at fair value
through profit or loss
Cash deposits by market participants
38,188.8
0
0
12.8
0
0
36.4
1.5
0
0
0
0
0
0
169.7
224.4
– 36.2
357.9
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
388.6
1.7 14,630.0
1.8
0
51.0
1.5
0 38,188.8
Total non-derivative financial
liabilties (gross)
Derivatives and financial instruments
held by central counterparties
Financial liabilites and derivatives
held by central counterparties
52,188.5
804.8
259.6
2,239.0
1,477.6
– 286.2 56,683.3
41,684.5 25,965.5 13,023.1
5,903.1
1,031.6
0 87,607.8
less financial assets and derivatives
– 41,684.5 – 26,060.5 – 13,023.1 – 5,903.1 – 1,031.6
0 – 87,702.8
held by central counterparties
Cash inflow - derivatives and hedges
Cash flow hedges
Fair value hedges
Derivatives held for trading
Cash outflow - derivatives and hedges
Cash flow hedges
Fair value hedges
0
0
0
1,156.0
0
0
0
1,870.6
654.1
403.2
0
0
0 – 1,200.5
0
0
0
0
– 405.3
0
0
Derivatives held for trading
0 – 1,968.3
– 687.5
Total derivatives and hedges
0
– 237.2
– 33.4
– 2.1
0
0
0
0
0
0
0
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Executive and Supervisory Boards
Management report
Financial statements
Notes | Other disclosures
Further information
Maturity analysis of financial instruments (2)
Contractual maturity
Not more
than 3
months
Sight
More than
3 months
but not
more than
1 year
More than
1 year but
not more
than 5
years
Reconcili-
ation to
carrying
amount
Over 5
years
Carrying
amount
31 Dec 2019
Mio. €
Mio. €
Mio. €
Mio. €
Mio. €
Mio. €
Mio. €
Non-derivative financial liabilities
Non-current financial liabilities
measured at amortised cost
thereof lease liabilities
Non-current financial liabilities at fair
value through profit or loss
0
0
0
0
0
0
Trade payables
0.4
204.0
0.7
Current financial liabilities measured at
amortised cost
thereof lease liabilities
Current financial liabilities at fair value
through profit or loss
13,826.3
63.7
335.1
0
3.6
11.6
33.9
0
Cash deposits by market participants
29,751.1
4.7
45.6
1,457.8
1,362.2
– 238.4
2,627.2
0
0
0
0
153.3
227.2
– 39.4
341.0
84.3
0
0
0
0
0
0
0
0
0
0
0
0
84.3
1.6
206.7
0.3 14,225.5
– 6.4
0
39.1
3.6
0 29,755.8
Total non-derivative financial
liabilties (gross)
Derivatives and financial instruments
held by central counterparties
Financial liabilites and derivatives
held by central counterparties
43,581.4
272.4
381.4
1,542.1
1,362.2
– 236.5 46,903.0
11,220.4 59,271.0
6,920.1
4,176.5
1,057.7
0 82,645.7
less financial assets and derivatives
– 11,220.4 – 60,161.0 – 6,920.1 – 4,176.5 – 1,057.7
0 – 83,535.7
held by central counterparties
Cash inflow - derivatives and hedges
Cash flow hedges
Fair value hedges
0
0
16.0
80.3
0
0
Derivatives held for trading
828.2
75.9
2,172.2
Cash outflow - derivatives and hedges
Cash flow hedges
Fair value hedges
0
0
– 16.0
– 79.3
0
0
Derivatives held for trading
– 829.6
– 75.7 – 2,171.0
Total derivatives and hedges
– 1.4
– 889.9
2.2
0
0
0
0
0
0
0
0
0
0
0
0
0
0
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Executive and Supervisory Boards
Management report
Financial statements
Notes | Other disclosures
Further information
24. Financial liabilities and other risks
Legal risks
The companies of Deutsche Börse Group are exposed to litigation. Such litigation may result in
payments by entities in the Group. If it is more likely than not that an outflow of resources will occur, a
provision will be recognised based on an estimate of the most probable amount necessary to settle the
obligation if such amount is reasonably estimable. The management of the entity affected must judge
whether the possible obligation results from a past event, as well as evaluate the probability of a cash
outflow and estimate its amount. As the outcome of litigation is usually uncertain, the judgement is
reviewed continuously.
Deutsche Börse Group recognises provisions for the possible incurrence of losses only if there is a
present obligation arising from a past event that is likely to result in an outflow of resources and if the
Group can reliably estimate the amount of the obligation (see also note 17). Contingent liabilities may
result from present obligations and from possible obligations arising from events in the past. In order to
identify the litigation for which the possibility of incurring a loss is more than unlikely, as well as how
the possible loss is estimated, Deutsche Börse Group considers a large number of factors, including the
nature of the claim and the facts on which it is based, the jurisdiction and course of the individual
proceedings, the experience of Deutsche Börse Group, prior settlement talks (to the extent that they
already taken place) as well as expert opinions and evaluations of legal advisers. In principle, losses can
arise from legal risks of which the occurrence is not very probable and for which reason no provisions
have been recognised. However, since there is some probability of their occurrence, they are presented
as contingent liabilities. As a reliable estimate of these contingent liabilities cannot be made either for
the time of occurrence or for possible outflows, a statement of the amount would not be representative
for potential future losses. For this reason, the contingent liabilities are not disclosed in terms of amount.
However, it is also possible that no reliable estimate for a specific litigation could be determined before
the approval of the consolidated financial statements, and that – as a result – no provisions are
recognised. The companies of Deutsche Börse Group are subject to litigation; as the outcome of litigation
is usually uncertain, the judgement is reviewed continuously.
Deutsche Börse Group presents further details of litigation risks in the combined management report
(see explanations in the risk report).
Tax risks
Due to its business activities in various countries, Deutsche Börse Group is exposed to tax risks. A
process has been developed to recognise and evaluate these risks, which are initially recognised based
on their probability of occurrence. These risks are then measured on the basis of their expected value. A
tax liability is recognised in the event that it is more probable than not that the risks will occur. Deutsche
Börse Group continuously reviews whether the conditions for recognising corresponding tax liabilities are
met.
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Executive and Supervisory Boards
Management report
Financial statements
Notes | Other disclosures
Further information
25. Corporate governance
On 3 December 2020, the Executive and Supervisory Boards issued the latest version of the declaration
of compliance in accordance with section 161 of the Aktiengesetz (AktG, the German Stock Corporation
Act) and made it permanently available to shareholders on the company’s website (see also the
corporate governance statement).
26. Related party disclosures
Related parties as defined by IAS 24 are members of the executive bodies of Deutsche Börse AG and
their close family members, as well as the companies classified as associates of Deutsche Börse AG,
investors and investees, and companies that are controlled or significantly influenced by members of the
executive bodies.
The remuneration of the individual members of the Executive and Supervisory Boards is presented in the
remuneration report.
Executive Board
In 2020, the fixed and variable remuneration of the members of the Executive Board, including non-
cash benefits granted in the financial year, amounted to €19.4 million (2019: €19.5 million). During
the year under review, expenses of €11.3 million (2019: €6.9 million) were recognised in connection
with share-based payments to Executive Board members.
The actuarial present value of the pension obligations to Executive Board members was €18.4 million as
at 31 December 2020 (2019: €15.6 million). Expenses of €3.2 million (2019: €2.2 million) were
recognised as additions to pension provisions.
Former members of the Executive Board or their surviving dependants
The remuneration paid to former members of the Executive Board or their surviving dependants
amounted to €8.3 million in 2020 (2019: €9.7 million). The actuarial present value of the pension
obligations was €86.0 million as at 31 December 2020 (2019: €84.8 million).
Termination benefits
Expenses of €0.7 million were recognised in connection with the termination of Executive Board
appointments.
Supervisory Board
The aggregate remuneration paid to members of the Supervisory Board in the reporting year was
€2.5 million (2019: €2.4 million).
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Executive and Supervisory Boards
Management report
Financial statements
Notes | Other disclosures
Further information
In the 2020 financial year, the employee representatives on Deutsche Börse AG’s Supervisory Board
received remuneration (excluding Supervisory Board remuneration) amounting to €0.8 million
(2019: €1.1 million). The total consists of the fixed and variable salary components for those employee
representatives.
Business relationships with related parties and key management personnel
The following table shows transactions entered into within the scope of business relationships with non-
consolidated companies of Deutsche Börse AG during the 2020 financial year. All transactions took
place on standard market terms.
Transactions with related parties
Amount of the
transactions:
revenue
Amount of the
transactions:
expenses
Outstanding balances:
receivables
Outstanding balances: liabilities
Associates
Total sum of
business
transactions
2020
2019
2020
2019
31 Dec 2020
31 Dec 2019
31 Dec 2020
€m
€m
€m
€m
18.6 14.3
– 29.4
– 20.7
€m
1.9
€m
2.3
31 Dec 2019
€m
€m
– 2.2
– 2.2
18.6 14.3
– 29.4
– 20.7
1.9
2.3
– 2.2
– 2.2
Business relationships with key management personnel
Key management personnel are persons who directly or indirectly have authority and responsibility for
planning, directing and controlling the activities of Deutsche Börse Group. The Group defines the
members of the Executive Board and the Supervisory Board as key management personnel for the
purposes of IAS 24. Key business relationships for Deutsche Börse Group are described below.
European Commodity Clearing Luxembourg S. à r.l., Luxembourg, Luxembourg (ECC Luxembourg) – a
subsidiary of European Commodity Clearing AG and therefore a member of the EEX group – entered into
a managing director agreement with IDS Lux S. à r.l., Luxembourg. The subject of the agreement is to
provide a natural person for the function of managing director in the management of ECC Luxembourg.
In addition to this position as managing director of ECC Luxembourg, this person is also a member of the
key management personnel at IDS Lux S.à r.l. In the financial year 2020, ECC Luxembourg made
payments in the amount of approximately €14 thousand for these management services.
The Board of Directors of LuxCSD S.A., Luxembourg, an associate from Deutsche Börse Group’s
perspective, comprises two members of management of fully consolidated subsidiaries who are
maintaining a key position within these subsidiaries of Deutsche Börse Group. There are business
relationships with Clearstream Banking S.A., Luxembourg, Clearstream Services S.A., Luxembourg,
Clearstream International S.A., Luxembourg, Clearstream Banking AG, Frankfurt/Main, Germany, and
Deutsche Börse AG, Frankfurt/Main, Germany, to LuxCSD S.A. Overall, revenue of €2,276.7 thousand
as well as expenses of €1,977 thousand were recognised for such contracts during the reporting year.
Furthermore, an Executive Board member of Clearstream Banking AG concurrently holds an executive
position within Deutsche Börse Commodities GmbH, Frankfurt/Main, Germany, an associate of Deutsche
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Notes | Other disclosures
Further information
Börse Group. During the 2020 financial year, Deutsche Börse Group realised revenue of €9,374.4
thousand and incurred expenses of €25,913.2 thousand based on the business relationship with
Deutsche Börse Commodities GmbH.
An Executive Board member of EPEX Spot SE is concurrently the sole shareholder of PELOUPIA SASU,
which provides advisory services to EPEX SPOT SE on the basis of a service agreement. In the context of
the services provided by PELOUPIA SASU, expenses of €14.0 thousand were incurred in 2020. As at 31
December 2020, liabilities amounted to €5.0 thousand.
One Executive Board member of Deutsche Börse AG as well as one Supervisory Board member of a
fully-consolidated company of Deutsche Börse Group are members of the Supervisory Board of China
Europe International AG (CEINEX), Frankfurt/Main, Germany. This stock corporation was established as
a joint venture between Shanghai Stock Exchange Ltd., Shanghai, China; China Financial Futures
Exchange, Shanghai, China; and Deutsche Börse AG. Expenses of €64.3 thousand were incurred in
2020 from the business relationship with CEINEX.
A member of the management of Axioma Inc., New York, USA, as well as one related party to this
company which exercises control over the company Cloud9 Smart, New York, USA, maintain business
relationships with each other. In the context of the services provided by Cloud9 Smart and Axioma Inc.,
expenses of €68.5 thousand were incurred in 2020. As at 31 December 2020, liabilities amounted to
€28.6 thousand.
Selected executives of Deutsche Börse Group companies also hold a key management position within
the Clearstream Pension Fund, an “association d’épargne pension” (ASSEP) under Luxembourg law. By
means of cash contributions to this ASSEP, Clearstream International S.A., Clearstream Banking S.A., as
well as Clearstream Services S.A., fund the defined benefit plan established in favour of their
Luxembourg employees.
27. Employees
Employees
Average number of employees during the year
Employed at the reporting date
Employees (average annual FTEs)
2020
6,996
7,238
2019
6,289
6,775
6,528
5,841
Of the average number of employees during the year, 28 (2019: 26) were classified as Managing
Directors (excluding Executive Board members), 348 (2019: 318) as senior executives and 6,620
(2019: 5,945) as employees.
There was an average of 6,528 full-time equivalent (FTE) employees during the year (2019: 5,841).
Please also refer to the “Employees” section in the combined management report.
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Financial statements
Notes | Other disclosures
Further information
28. Decision-making bodies
The members of the company’s decision-making bodies are listed in the “The Executive Board”
and “The Supervisory Board” chapters of this annual report.
29. Events after the end of the reporting period
Deutsche Börse AG has successfully completed the acquisition of Institutional Shareholder Services Inc.,
Rockville, USA (ISS) a governance, ESG data and analytics provider on 25 February 2021. The closing
took place after the receipt of all necessary regulatory approvals. The transaction, announced in late
2020, is based on a valuation of US$2,275 million for 100 percent of the business cash and debt free.
For more details, see section “Acquisitions”.
To partially finance this acquisition, Deutsche Börse AG successfully placed senior bonds in the amount
of €1 billion on 15 February 2021, divided into two tranches with maturities of five and ten years. The
five-year bond has a negative yield of – 0.19 percent and a coupon of 0 percent, and the ten-year bond
has a yield of 0.19 percent and a coupon of 0.125 percent. In connection with the bond issues,
Standard & Poor's has confirmed Deutsche Börse AG's "AA" credit rating with a stable outlook.
30. Date of approval for publication
Deutsche Börse AG's Executive Board approved the consolidated financial statements for submission to
the Supervisory Board on 1 March 2021. The Supervisory Board is responsible for examining the
consolidated financial statements and stating whether it endorses them.
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Notes | Other disclosures
Further information
31. Disclosures on material non-controlling interests
Wesentliche nicht beherrschende Anteile
Attributable to non-controlling interests:
Capital (%)
Voting rights (%)
Net profit for the period (in €m)
Equity (in €m)
Dividend payments (in €m)
Assets (in €m)
Liabilities (in €m)
Profit/loss (in €m)
Other comprehensive income (in €m)
Comprehensive income (in €m)
Cashflows (in €m)
European Energy Exchange AG,
Leipzig
Qontigo Group, Frankfurt/Main
31 Dec 2020 31 Dec 2019 31 Dec 2020 31 Dec 2019
75.1
62.8
58.5
532.7
16.2
75.1
62.8
53.9
472.8
16.2
593.9
527.0
61.2
58.5
– 3.9
54.6
17.8
54.2
53.9
0.9
54.8
– 7.5
78.3
78.3
88.5
741.8
61.5
958.7
216.9
88.5
– 66.6
22.0
7.7
78.3
78.3
32.8
783.4
0
1,018.5
235.1
32.8
– 10.2
22.6
139.1
32. Disclosures on associates
Deutsche Börse Group does not have any material associates. The following table shows summarised
financial information for the individual associates that are immaterial when considered separately.
Non-material associates
Book value of non-material associates
Profit after Tax
Other income
Comprehensive income
1) Disclosures are based on preliminary and unaudited figures which may be adjusted subsequently.
31 Dec 20201)
€m
89.5
18.6
0
18.6
31 Dec 2019
€m
44.5
0.9
0
0.9
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Notes | Other disclosures
Further information
33. List of shareholdings
Deutsche Börse AG’s equity interests in subsidiaries, associates and joint ventures as at
31 December 2020 included in the consolidated financial statements are presented in the following
tables. There were no joint ventures as of the reporting date.
Fully consolidated subsidiaries (part 1)
Company
Domicile
Börse Frankfurt Zertifikate AG
Clearstream Holding AG
Clearstream Banking AG
Clearstream Banking S.A.
Clearstream Australia Limited
Clearstream Banking Japan, Ltd.
REGIS-TR S.A.
Clearstream Fund Centre AG
Frankfurt/Main, Germany
Frankfurt/Main, Germany
Frankfurt/Main, Germany
Luxembourg, Luxembourg
Sydney, Australia
Tokyo, Japan
Luxembourg, Luxembourg
Luxembourg, Luxembourg
Clearstream Global Securities Services Limited
Cork, Ireland
Clearstream International S.A.
Clearstream Nominees Limited
Clearstream Operations Prague s.r.o.
Clearstream Services S.A.
REGIS-TR UK Ltd. (dormant)
DB1 Ventures GmbH
Luxembourg, Luxembourg
London, United Kingdom
Prague, Czech Republic
Luxembourg, Luxembourg
London, United Kingdom
Frankfurt/Main, Germany
Deutsche Boerse Market Data + Services Singapore Pte. Ltd.
Singapore, Singapore
Deutsche Boerse Systems Inc.
Centana Growth Partners, LLC
Bryant Sands Partners, LLC
Bryant Sands Partners II, LLC
Quantitative Brokers LLC
Chicago, USA
New York, USA
Delaware, USA
Delaware, USA
New York, USA
Quantitative Brokers Australia Pty Ltd
Sydney, Australia
Quantitative Brokers Software India Private Limited
Chennai, India
Quantitative Brokers UK Limited
Hounslow, United Kingdom
Deutsche Börse Photography Foundation gGmbH
Frankfurt/Main, Germany
Deutsche Börse Services s.r.o.
Eurex Frankfurt AG
Eurex Clearing AG
Eurex Repo GmbH
Prague, Czech Republic
Frankfurt/Main, Germany
Frankfurt/Main, Germany
Frankfurt/Main, Germany
Eurex Securities Transactions Services GmbH
Frankfurt/Main, Germany
Eurex Global Derivatives AG
Eurex Services GmbH
Zug, Switzerland
Frankfurt/Main, Germany
Equity interest as at
31 Dec 2020
direct/(indirect)
%
100.00
100.00
(100.00)
(100.00)
(100.00)
(100.00)
(50.00)
(51.20)
(100.00)
(100.00)
(100.00)
(100.00)
(100.00)
(50.00)
100.00
100.00
100.00
(100.00)
(100.00)
(100.00)
(72.60)
(72.60)
(72.24)
(72.60)
100.00
100.00
100.00
(100.00)
(100.00)
(100.00)
100.00
100.00
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Further information
Fully consolidated subsidiaries (part 2)
Company
Domicile
European Energy Exchange AG
EEX Asia Pte. Limited
EEX CEGH Gas Exchange Services GmbH
EEX Link GmbH
European Commodity Clearing AG
Leipzig, Germany
Singapore, Singapore
Vienna, Austria
Leipzig, Germany
Leipzig, Germany
European Commodity Clearing Luxembourg S.à r.l.
Luxembourg, Luxembourg
EPEX SPOT SE
EPEX Netherlands B.V.
EPEX SPOT Schweiz AG
Gaspoint Nordic A/S
Grexel Systems oy
KB Tech Ltd.
Nodal Exchange Holdings, LLC
Nodal Exchange, LLC
Nodal Clear, LLC
Paris, France
Amsterdam, Netherlands
Bern, Switzerland
Brøndby, Denmark
Helsinki, Finland
Tunbridge Wells, United Kingdom
Tysons Corner, USA
Tysons Corner, USA
Tysons Corner, USA
Power Exchange Central Europe a.s.
Prague, Czech Republic
Lapis HoldCo Inc.
Lapis Intermediate Inc.
Lapis Merger Sub Inc.
Qontigo GmbH
Axioma Inc.
Axioma (CH) GmbH
Axioma (HK) Ltd.
Axioma (UK) Ltd.
Axioma Argentina S.A.U.
Axioma Asia Pte Ltd.
Axioma Deutschland GmbH
Axioma Japan G.K.
Axioma Ltd.
Axioma S.A.S.U.
Qontigo Index GmbH
STOXX Ltd.
INDEX PROXXY Ltd.
Tradegate Exchange GmbH
Börse Berlin AG1)
360 Treasury Systems AG
360 Trading Networks Inc.
360 Trading Networks Limited
360 Trading Networks Sdn Bhd
360T Asia Pacific Pte. Ltd.
360TGTX Inc.
Finbird GmbH
Delaware, USA
Delaware, USA
Delaware, USA
Frankfurt/Main, Germany
New York, USA
Geneva, Switzerland
Hong Kong, Hong Kong
London, United Kingdom
Buenos Aires, Argentina
Singapore, Singapore
Frankfurt/Main, Germany
Tokyo, Japan
Sydney, Australia
Paris, France
Frankfurt/Main, Germany
Zug, Switzerland
London, United Kingdom
Berlin, Germany
Berlin, Germany
Frankfurt/Main, Germany
New York, USA
Dubai, United Arab Emirates (UAE)
Kuala Lumpur, Malaysia
Singapore, Singapore
New York, USA
Frankfurt/Main, Germany
ThreeSixty Trading Networks (India) Pte. Ltd.
Mumbai, India
1) Thereof 59.98 percent direct and 3.99 percent indirect.
Equity interest as at
31 Dec 2020
direct/(indirect)
%
75.05
(75.05)
(38.27)
(75.05)
(75.05)
(75.05)
(38.27)
(38.27)
(38.27)
(75.05)
(75.05)
(75.05)
(75.05)
(75.05)
(75.05)
(50.03)
100.00
(100.00)
(100.00)
78.32
(78.32)
(78.32)
(78.32)
(78.32)
(78.32)
(78.32)
(78.32)
(78.32)
(78.32)
(78.32)
(78.32)
(78.32)
(78.32)
63.97
(63.97)
100.00
(100.00)
(100.00)
(100.00)
(100.00)
(100.00)
(100.00)
(100.00)
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Further information
Associates
Company
Domicile
Equity interest as at 31 Dec 2020
direct/(indirect)
%
BrainTrade Gesellschaft für Börsensysteme mbH
Frankfurt/Main, Germany
China Europe International Exchange AG
Frankfurt/Main, Germany
Clarity AI, Inc.
CloudMargin Ltd.
Deutsche Börse Commodities GmbH
enermarket GmbH
FundsDLT
HQLAx S.à r.l.
LuxCSD S.A.
Moorgate PV Holdings LLC
Proxymity Limited
Origin Primary Limited
R5FX Ltd
SEEPEX a.d.
SPARK Commodities Ltd.
Tradegate AG Wertpapierhandelsbank
ZDB Cloud Exchange GmbH in Liquidation
Zimory GmbH in Liquidation
Delaware, USA
London, United Kingdom
Frankfurt/Main, Germany
Frankfurt/Main, Germany
Luxembourg, Luxembourg
Luxembourg, Luxembourg
Luxembourg, Luxembourg
Delaware, USA
Delaware, USA
London, United Kingdom
London, United Kingdom
Belgrade, Serbia
Singapore, Singapore
Berlin, Germany
Eschborn, Germany
Berlin, Germany
(37.72)
40.00
19.90
8.21
16.20
(30.02)
17.91
31.40
(50.00)
(9.55)
(9.55)
20.00
15.65
(9.57)
(18.76)
19.99
49.90
29.51
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Financial statements
Notes | Responsibility statement by the Executive Board
Further information
Responsibility statement by the Executive Board
To the best of our knowledge, and in accordance with the applicable reporting principles, the
consolidated financial statements give a true and fair view of the assets, liabilities, financial position and
profit or loss of the Group, and the combined management report includes a fair review of the
development and performance of the business and the position of the Group, together with a description
of the principal opportunities and risks associated with the expected development of the Group.
Frankfurt / Main, 4 March 2021
Deutsche Börse AG
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257
Independent Auditors’ Report
To Deutsche Börse Aktiengesellschaft, Frankfurt am Main
Report on the Audit of the Consolidated Financial Statements and
Combined Management Report
Opinions
We have audited the consolidated financial statements of Deutsche Börse Aktiengesellschaft,
Frankfurt am Main, and its subsidiaries (the Group), which comprise the consolidated balance sheet as
of 31 December 2020, the consolidated income statement, the consolidated statement of comprehen-
sive income, the consolidated statement of changes in equity and the consolidated cash flow statement
and for the financial year from 1 January to 31 December 2020, and notes to the consolidated
financial statements, including a summary of significant accounting policies. In addition, we have
audited the combined management report of Deutsche Börse Aktiengesellschaft including the combined
non-financial statement in line with Sections 289b(1), 289c, 315b and 315c HGB [Handels gesetzbuch:
German Commercial Code] for the financial year from 1 January to 31 December 2020. In accordance
with the legal requirements applicable in Germany, we did not audit the components of the combined
management report which we have identified in the „Other information“ section of our audit opinion.
The combined management report comprises links to the Group’s website which are not required by
law. In accordance with the legal requirements applicable in Germany, we did not audit these links,
nor the information referred to in the links.
In our opinion, on the basis of the knowledge obtained in the audit,
the accompanying consolidated financial statements comply in all material respects with the IFRSs
as adopted by the EU and the additional requirements of German commercial law pursuant to
Section 315e(1) HGB [Handelsgesetzbuch: German Commercial Code] and, in compliance with
these requirements, give a true and fair view of the assets, liabilities, and financial position of the
Group as of 31 December 2020 and of its financial performance for the financial year from
1 January to 31 December 2020, and
the accompanying combined management report as a whole provides an appropriate view of the
Group’s position. In all material respects, the combined management report is consistent with the
consolidated financial statements, complies with German legal requirements and appropriately
presents the opportunities and risks of future development. Our opinion on the combined manage-
ment report does not cover the content of the components of the combined management report
which we have identified in the „Other information“ section of our audit opinion. The combined
management report comprises links to the Group’s website which are not required by law. Our
opinion does not cover the links, nor the information referred to in the links.
Pursuant to Section 322(3) sentence 1 HGB, we declare that our audit has not led to any reservations
relating to the legal compliance of the consolidated financial statements and of the combined manage-
ment report.
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Basis for the Opinions
We conducted our audit of the consolidated financial statements and combined management report in
accordance with Section 317 HGB and the EU Audit Regulation No 537/2014 (referred to subsequently
as ‘EU Audit Regulation’) and in compliance with German Generally Accepted Standards for Financial
Statement Audits promulgated by the Institut der Wirtschaftsprüfer [Institute of Public Auditors in
Germany] (IDW). Our responsibilities under those requirements and principles are further described in
the ‘Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements and Combined
Management Report’ section of our auditor’s report. We are independent of the group entities in accor-
dance with the requirements of European law and German commercial and professional law, and we
have fulfilled our other German professional responsibilities in accordance with these requirements. In
addition, in accordance with Article 10(2) point (f) of the EU Audit Regulation, we declare that we have
not provided non-audit services prohibited under Article 5(1) of the EU Audit Regulation. We believe that
the evidence we have obtained is sufficient and appropriate to provide a basis for our opinions on the
consolidated financial statements and on the combined management report.
Key Audit Matters in the Audit of the Consolidated Financial Statements
Key audit matters are those matters that, in our professional judgement, were of most significance in our
audit of the consolidated financial statements for the financial year from 1 January to 31 December 2020.
These matters were addressed in the context of our audit of the consolidated financial statements as a
whole, and in forming our opinion thereon; we do not provide a separate opinion on these matters.
Impairment of the goodwill
For the accounting policies applied as well as the assumptions used, please refer to note 2 (Basis of
consolidation) and note 10 (Intangible assets) in the notes to the consolidated financial statements.
THE FINANCIAL STATEMENT RISK
At 31 December 2020, goodwill amounted to EUR 3,958 million (previous year: EUR 3,471 million).
The goodwill thus represents 2.6 per cent of the assets of the Group at 31 December 2019.
Goodwill is subjected to an impairment test by the company at least once a year and also on an ad hoc
basis, if appropriate. For this purpose, the carrying amount is compared with the recoverable amount of
the cash-generating unit (CGU). Deutsche Börse AG determines the recoverable amounts of the cash-
generating units either on the basis of the value in use or on the basis of the fair value less costs of
disposal. If the carrying amount is higher than the recoverable amount, there is a need for impairment.
The result of these valuations is highly dependent upon assumptions concerning future cash inflows,
based on the corporate planning, as well as the defined parameters. As a result, the valuations are
subject to discretion. Any need for impairment that may arise as a result can have a material impact on
the statement of the assets, liabilities and financial performance of the Group. Therefore, the correct
determination of any need for impairment is of particular significance for the financial statements.
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With the support of our valuation experts, we have assessed the valuation models used by the com-
pany as well as the appropriateness of the significant assumptions relating to valuation parameters. We
assessed the appropriateness of the assumptions used in the determination of the discount rates by
comparing them with market- and industry-specific reference values; we additionally verified the
calculation method used to determine the discount rates. We compared the expected cash inflows and
outflows used for the calculations with the current budget plan approved by management. In order to
assess the appropriateness of the assumptions used when the budget plan was drawn up, we first
discussed these in meetings with management. Then we compared the assumptions used with
relevant peer group companies, and evaluated analyst reports on the market segments. We further-
more appraised the reliability of the forecasts in previous years based on whether they occurred or not.
Within the scope of our own sensitivity analyses, we determined whether there would be a need for
impairment in the event of possible changes in the assumptions in realistic ranges.
OUR OBSERVATIONS
The calculation method used by the company is appropriate and consistent with the relevant valuation
principles. The underlying assumptions about the valuation-relevant parameters have been calculated
in a balanced way and are within acceptable ranges.
Impairment of the other intangible assets
For the accounting policies applied as well as the assumptions used, please refer to note 2 (Basis of
consolidation) and note 10 (Intangible assets) in the notes to the consolidated financial statements.
THE FINANCIAL STATEMENT RISK
At 31 December 2020, other intangible assets amounted to EUR 1,255 million (previous year:
EUR 1,041 million). Other intangible assets thus represent 0.8 per cent of the Group’s assets as at
31 December 2020.
The other intangible assets with indefinite useful lives are subject to an impairment test by the com-
pany at least once a year, and also on an ad hoc basis, if appropriate. For this purpose, Deutsche
Börse AG determines the recoverable amounts of the intangible asset or cash-generating units, in case
no independent cash flows can be allocated to that specific intangible asset, either on the basis of the
value in use or on the basis of the fair value less costs of disposal. The result of these valuations is
highly dependent upon assumptions concerning future cash inflows, based on the corporate planning,
as well as the defined parameters. As a result, the valuations are subject to discretion. Any need for
impairment that may arise as a result can have a material impact on the statement of the assets,
liabilities and financial performance of the Group. Therefore, the correct determination of any need for
impairment is of particular significance for the financial statements.
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With the support of our valuation experts, we have assessed the valuation models used by the com-
pany as well as the appropriateness of the significant assumptions relating to valuation parameters. We
assessed the appropriateness of the assumptions used in the determination of the discount rates by
comparing them with market- and industry-specific reference values; we additionally verified the
calculation method used to determine the discount rates. We compared the expected cash inflows and
outflows used for the calculations with the current budget plan approved by management. In order to
assess the appropriateness of the assumptions used when the budget plan was drawn up, we first
discussed these in meetings with management. Then we compared the assumptions used with
relevant peer group companies, and evaluated analyst reports on the market segments. We further-
more appraised the reliability of the forecasts in previous years based on whether they occurred or not.
Within the scope of our own sensitivity analyses, we determined whether there would be a need for
impairment in the event of possible changes in the assumptions in realistic ranges.
OUR OBSERVATIONS
The calculation method used by the company is appropriate and consistent with the relevant valuation
principles. The underlying assumptions about the valuation-relevant parameters have been calculated
in a balanced way and are within acceptable ranges.
Other Information
The company’s management, or the Supervisory Board, is responsible for the other information. The
other information comprises the combined corporate governance statement as a component of the
combined management report, whose content was not audited, and which is disclosed in the section
“Corporate governance statement”.
Other information also comprises the other parts of the annual report.
However, other information does not comprise the consolidated financial statements, the audited
disclosures of the combined management report as well as our corresponding auditor‘s report.
Our opinions on the consolidated financial statements and on the combined management report do not
cover the other information, and consequently we do not express an opinion or any other form of
assurance conclusion thereon.
In connection with our audit, our responsibility is to read the other information and, in so doing, to
consider whether the other information is
materially inconsistent with the consolidated financial statements, with the audited disclosures in the
combined management report or our knowledge obtained in the audit, or
otherwise appears to be materially misstated.
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Responsibilities of Management and the Supervisory Board for the Consolidated Financial
Statements and Combined Management Report
Management is responsible for the preparation of the consolidated financial statements that comply, in
all material respects, with IFRSs as adopted by the EU, and the additional requirements of German
commercial law pursuant to Section 315e(1) HGB, and that the consolidated financial statements, in
compliance with these requirements, give a true and fair view of the assets, liabilities, financial
position and financial performance of the Group. In addition, management is responsible for such
internal control as they have determined necessary to enable the preparation of consolidated financial
statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the
Group’s ability to continue as a going concern. Moreover, the company’s management has the respon-
sibility to disclose any matters that are relevant for the going concern assumption. In addition, they are
responsible for financial reporting based on the going concern basis of accounting unless there is an
intention to liquidate the Group or to cease operations, or there is no realistic alternative but to do so.
Furthermore, management is responsible for the preparation of the combined management report that,
as a whole, provides an appropriate view of the Group’s position and is, in all material respects,
consistent with the consolidated financial statements, complies with German legal requirements and
appropriately presents the opportunities and risks of future development. In addition, management is
responsible for such arrangements and measures (systems) as they have considered necessary to
enable the preparation of the combined management report that is in accordance with the applicable
German legal requirements and to be able to provide sufficient appropriate evidence for the assertions
in the combined management report.
The supervisory board is responsible for overseeing the Group’s financial reporting process for the
preparation of the consolidated financial statements and of the combined management report.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements and the
Combined Management Report
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements
as a whole are free from material misstatement, whether due to fraud or error, and whether the
combined management report as a whole provides an appropriate view of the Group’s position and, in
all material respects, is consistent with the consolidated financial statements and the knowledge
obtained in the audit, complies with the German legal requirements, and appropriately presents the
opportunities and risks of future development, as well as to issue an auditor’s report that includes our
opinions on the consolidated financial statements and on the combined management report.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with Section 317 HGB and the EU Audit Regulation and in compliance with German
Generally Accepted Standards for Financial Statement Audits promulgated by the Institut der Wirt-
schaftsprüfer (IDW) will always detect a material misstatement. Misstatements can arise from fraud or
error and are considered material if, individually or in the aggregate, they could reasonably be expected
to influence the economic decisions of users taken on the basis of these consolidated financial state-
ments and this combined management report.
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Deutsche Börse Group | Annual report 2020Executive and Supervisory BoardsManagement reportFinancial statementsNotesFurther information | Independent Auditors’ Report We exercise professional judgement and maintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the consolidated financial statements and
the combined management report, whether due to fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a
basis for our opinions. The risk of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
Obtain an understanding of the internal control system relevant to the audit of the consolidated
financial statements, and of arrangements and measures (systems) relevant to the audit of the
combined management report, in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of these
systems.
Evaluate the appropriateness of accounting policies used by management and the reasonableness of
estimates made by management and related disclosures.
Conclude on the appropriateness of management’s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If
we conclude that a material uncertainty exists, we are required to draw attention in the auditor’s
report to the related disclosures in the consolidated financial statements and in the combined
management report or, if such disclosures are inadequate, to modify our respective opinions. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s report. How-
ever, future events or conditions may cause the Group to cease to be able to continue as a going
concern.
Evaluate the overall presentation, structure and content of the consolidated financial statements,
including the disclosures, and whether the consolidated financial statements present the underlying
transactions and events in a manner that the consolidated financial statements give a true and fair
view of the assets, liabilities, financial position, and financial performance of the Group in compli-
ance with IFRSs as adopted by the EU and the additional requirements of German commercial law
pursuant to Section 315e(1) HGB.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or busi-
ness activities within the Group to express opinions on the consolidated financial statements and on
the combined management report. We are responsible for the direction, supervision and perfor-
mance of the group audit. We remain solely responsible for our opinions.
Evaluate the consistency of the combined management report with the consolidated financial
statements, its conformity with German law, and the view of the Group’s position it provides.
Perform audit procedures on the prospective information presented by management in the combined
management report. On the basis of sufficient appropriate audit evidence, we evaluate, in particular
the significant assumptions used by management as a basis for the prospective information, and
evaluate the proper derivation of the prospective information from these assumptions. We do not
express a separate opinion on the prospective information and on the assumptions used as a basis.
There is a substantial unavoidable risk that future events will differ materially from the prospective
information.
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We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with the
relevant independence requirements, and communicate with them all relationships and other matters
that may reasonably be thought to bear on our independence and, where applicable, the related
safeguards.
From the matters communicated with those charged with governance, we determine those matters that
were of most significance in the audit of the consolidated financial statements of the current period and
are therefore the key audit matters. We describe these matters in our auditor’s report unless law or
regulation precludes public disclosure about the matter.
Other Legal and Regulatory Requirements
Report on the Assurance in accordance with Section 317 (3b) HGB on the Electronic Reproduction
of the Consolidated Financial Statements and the Combined Management Report Prepared for
Publication Purposes
We have performed assurance work in accordance with Section 317 (3b) HGB to obtain reasonable
assurance about whether the reproduction of the consolidated financial statements and the combinded
management report (hereinafter the “ESEF documents”) contained in the file that can be downloaded
by the issuer from the electronic client portal with access protection, “deutschebrseag.zip” (SHA256
hash value: cba6a49cdb5e885130ac5f5c0e89a904bf761584080fa554fb73a38733c1ceda) and
prepared for publication purposes complies in all material respects with the requirements of Section
328 (1) HGB for the electronic reporting format (“ESEF format”). In accordance with German legal
requirements, this assurance only extends to the conversion of the information contained in the
consolidated financial statements and the combined management report into the ESEF format and
therefore relates neither to the information contained in this reproduction nor any other information
contained in the above-mentioned electronic file.
In our opinion, the reproduction of the consolidated financial statements and the combined manage-
ment report contained in the above-mentioned electronic file and prepared for publication purposes
complies in all material respects with the requirements of Section 328 (1) HGB for the electronic
reporting format. We do not express any opinion on the information contained in this reproduction nor
on any other information contained in the above-mentioned file beyond this reasonable assurance
opinion and our audit opinion on the accompanying consolidated financial statements and the accom-
panying combined management report for the financial year from 1 January to 31 December 2020
contained in the “Report on the Audit of the Consolidated Financial Statements and the Combined
Management Report” above.
284
Deutsche Börse Group | Annual report 2020Executive and Supervisory BoardsManagement reportFinancial statementsNotesFurther information | Independent Auditors’ Report We conducted our assurance work on the reproduction of the consolidated financial statements and
the combinded management report contained in the above-mentioned electronic file in accordance
with Section 317 (3b) HGB and the Exposure Draft of the IDW Assurance Standard: Assurance in
accordance with Section 317 (3b) HGB on the Electronic Reproduction of Financial Statements and
Management Reports Prepared for Publication Purposes (ED IDW AsS 410) and the International
Standard on Assurance Engagements 3000 (Revised)]. Accordingly, our responsibilities are further
described below. Our audit firm has applied the IDW Standard on Quality Management 1: Require-
ments for Quality Management in Audit Firms (IDW QS 1).
The company’s management is responsible for the preparation of the ESEF documents including the
electronic reproduction of the consolidated financial statements and the combined management report
in accordance with Section 328 (1) sentence 4 item 1 HGB and for the tagging of the consolidated
financial statements in accordance with Section 328 (1) sentence 4 item 2 HGB.
In addition, the company’s management is responsible for the internal controls they consider necessary
to enable the preparation of ESEF documents that are free from material intentional or unintentional
non-compliance with the requirements of Section 328 (1) HGB for the electronic reporting format.
The company’s management is also responsible for the submission of the ESEF documents together
with the auditor’s report and the attached audited consolidated financial statements and audited
combined management report as well as other documents to be published to the operator of the
German Federal Gazette [Bundesanzeiger].
The supervisory board is responsible for overseeing the preparation of the ESEF documents as part of
the financial reporting process.
Our objective is to obtain reasonable assurance about whether the ESEF documents are free from
material intentional or unintentional non-compliance with the requirements of Section 328 (1) HGB.
We exercise professional judgement and maintain professional scepticism throughout the assurance
work. We also:
Identify and assess the risks of material intentional or unintentional non-compliance with the
requirements of Section 328 (1) HGB, design and perform assurance procedures responsive to those
risks, and obtain assurance evidence that is sufficient and appropriate to provide a basis for our
assurance opinion.
Obtain an understanding of internal control relevant to the assurance of the ESEF documents in
order to design assurance procedures that are appropriate in the circumstances, but not for the
purpose of expressing an assurance opinion on the effectiveness of these controls.
Evaluate the technical validity of the ESEF documents, i.e. whether the electronic file containing the
ESEF documents meets the requirements of Commission Delegated Regulation (EU) 2019/815 on
the technical specification for this electronic file.
Evaluate whether the ESEF documents enable an XHTML reproduction with content equivalent to the
audited consolidated financial statements and the audited combined management report.
Evaluate whether the tagging of the ESEF documents with Inline XBRL technology (iXBRL) enables
an appropriate and complete machine-readable XBRL copy of the XHTML reproduction.
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Further information pursuant to Article 10 of the EU Audit Regulation
We were elected as group auditors by the annual general meeting held on 19 May 2020. We were
engaged by the chair of the audit committee of the Supervisory Board on 29 July 2020. We have been
engaged as auditors of the consolidated financial statements of Deutsche Börse AG without inter-
ruption since the 2001 financial year.
We declare that the opinions expressed in this auditor’s report are consistent with the additional report
to the audit committee pursuant to Article 11 of the EU Audit Regulation (long form audit report).
In addition to the consolidated financial statements, we audited the annual financial statements of
Deutsche Börse AG and carried out various annual audits of subsidiaries. The audits included reviews
of interim financial statements. Other assurance services relate to ISAE 3000 reports, and statutory or
contractual audits such as audits under the WpHG as well as other contractually agreed assurance
services.
Tax services include assistance in the preparation of tax returns, tax appraisals and advice on individual
matters, and tax advice related to the external audit.
As part of other services, we supported Deutsche Börse AG with quality assurance measures.
German Public Auditor Responsible for the Engagement
The German Public Auditor responsible for the engagement is Klaus-Ulrich Pfeiffer.
Frankfurt am Main, 4 March 2021
KPMG AG
Wirtschaftsprüfungsgesellschaft
[Original German version signed by:]
Leitz
Wirtschaftsprüfer
[German Public Auditor]
Pfeiffer
Wirtschaftsprüfer
[German Public Auditor]
286
Deutsche Börse Group | Annual report 2020Executive and Supervisory BoardsManagement reportFinancial statementsNotesFurther information | Independent Auditors’ Report Executive and Supervisory Boards
Management report
Financial statements
Notes
Further information | Acknowledgement | Contact | Registered trademarks
Acknowledgement
Published by
Deutsche Börse AG
60485 Frankfurt/Main
Germany
www.deutsche-boerse.com
Concept and layout
Deutsche Börse AG, Frankfurt/Main
Kirchhoff Consult AG, Hamburg
Photographs
Getty Images
Publication date
12 March 2021
Contact
ir@deutsche-boerse.com
Investor Relations
E-Mail
Phone +49-(0) 69 – 2 11 – 1 16 70
+49-(0) 69 – 2 11 – 1 46 08
Fax
www.deutsche-boerse.com/ir _ e
group-sustainability@deutsche-boerse.com
Group Sustainability
E-Mail
Phone +49-(0) 69 – 2 11 – 1 42 26
Fax
+49-(0) 69 – 2 11 – 61 42 26
www.deutsche-boerse.com/sustainability
corporate.report@deutsche-boerse.com
Financial Accounting & Controlling
E-Mail
Phone +49-(0) 69 – 2 11 – 1 79 80
Fax
+49-(0) 69 – 2 11 – 61 79 80
The German version of this report is legally binding.
The company cannot be held responsible for any
misunder- standing or misinterpretation arising from
this translation.
Reproduction – in total or in part – only with the writ-
ten permission of the publisher
We would like to thank all colleagues and service
providers who participated in the compilation of this
report for their friendly support.
Publications service
The annual report 2020 is both available in German
and English.
The annual report 2020 of Deutsche Börse Group is
available as pdf on the internet:
www.deutsche-boerse.com/annual _ report
Registered trademarks
The following names or designations are
registered trademarks of Deutsche Börse AG
or a Deutsche Börse Group:
C7®, DAX®, Deutsche Börse Venture Network®, ERS®, Eurex®,
Eurex Bonds®, Eurex Clearing Prisma®, Eurex Repo®, F7®, FWB®,
GC Pooling®, M7®, MDAX®, ÖkoDAX®, SDAX®, T7®, TecDAX®,
VDAX®, Vestima®, Xetra® and Xetra-Gold® are registered
trademarks of Deutsche Börse AG. 360T® is a registered
trademark of 360 Treasury Systems AG. EURO STOXX®,
EURO STOXX 50 ®, iSTOXX® and STOXX® Europe 600 Financials
are registered trademarks of STOXX Ltd. TRADEGATE® is a
registered trademark of Tradegate AG Wertpapierhandelsbank
CFF®, Vestima® is a registred trademark of Clearstream
International S.A., Xemac® is a registred trademark of
Clearstream Banking S.A. EEX® is a registered trademark of
European Energy Exchange AG.
287
Deutsche Börse Group | Annual report 2020 Executive and Supervisory Boards
Management report
Financial statements
Notes
Further information | About this report
About this report
Deutsche Börse Group’s 2020 annual report does not
only document what happened in financial year 2020
but also provides a solid summary of how the com-
pany defines and implements key action areas for its
“Overview of
sustainability profile. In addition, the
key sustainability aspects” table shows the UN’s
sustainable development goals (SDGs) that are ad-
dressed by Deutsche Börse Group.
Our reporting of sustainability information and key
performance indicators complies with the Global
Reporting Initiative (GRI) Standards (Core option). A
comprehensive overview of all GRI indicators (GRI
index) can be found at
> Sustainability > ESG ratings & reporting > GRI
www.deutsche-boerse.com
Principles of sustainability reporting
Our aim in our sustainability reporting is to achieve
the highest possible degree of clarity and transpa-
rency. The combined management report contains a
separate section with a combined non-financial state-
ment in accordance with sections 289b and 315b of
the Handelsgesetzbuch (HGB, German Commercial
Code). In line with this, the non-financial facts and fi-
gures published in it generally refer to Deutsche Börse
Group as a whole. Where the information on Deut-
sche Börse AG differs from that on Deutsche Börse
Group this is specifically mentioned. In addition, to-
pics that are specific to certain locations and locally
managed sustainability activities are identified as
such.
Verification of non-financial key performance indi-
cators
KPMG AG Wirtschaftsprüfungsgesellschaft, an inde-
pendent external auditor, has audited the content of
Au-
the combined non-financial statement. KPMG’s
ditor’s Report on Deutsche Börse AG’s (consolidated)
financial statements and combined management re-
port as at 31 December 2020 also covers the assu-
rance of the combined non-financial statement.
The separate limited assurance review opinion on all
sustainability information contained in the GRI index
www.deutsche-boerse.
can be accessed online at
com > Sustainability > ESG ratings & reporting >
Annual report.
288
Deutsche Börse Group | Annual report 2020 Financial calendar 2021
21 April 2021
Publication quarterly statement Q1/2021
19 May 2021
Annual General Meeting
27 July 2021
Publication half-yearly financial report 2021
19 October 2021
Publication quarterly statement Q3/2021
Deutsche Börse AG
60485 Frankfurt am Main
www.deutsche-boerse.com