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Deutsche Börse AG

Quarterly Report Apr 30, 2014

101_10-q_2014-04-30_fb409f2e-78a1-463c-b62a-202115f3e0bd.pdf

Quarterly Report

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Interim report

Quarter 1/2014

Deutsche Börse Group: key figures

31 Mar 2014 Quarter ended
31 Mar 2013
Consolidated income statement
Net revenue (total revenue less volume-related costs) €m 514.2 484.3
Net interest income from banking business €m 8.4 8.2
Operating costs €m –247.8 –295.3
Earnings before interest and tax (EBIT) €m 329.9 192.0
Net income for the period €m 219.0 121.2
Earnings per share (basic) 1.19 0.66
Consolidated cash flow statement
Cash flows from operating activities excluding CCP positions €m 53.2 146.3
Consolidated balance sheet (as at 31 March)
Non-current assets €m 11,605.7 5,082.0
Equity €m 3,561.0 3,312.8
Non-current interest-bearing liabilities €m 1,522.7 1,545.3
Performance indicators
Employees (average FTEs for the period) 4,009 3,725
EBIT margin, based on net revenue % 531) 40
Tax rate % 26.02) 26.0
Gross debt / EBITDA 1.32) 1.4
Interest coverage ratio % 28.42) 15.8
The shares
Opening price 60.20 46.21
Closing price (as at 31 March) 57.77 47.25
Market indicators
Eurex
Number of contracts m 541.1 558.4
Xetra and Börse Frankfurt
Trading volume (single-counted) €bn 331.93) 260.3
Clearstream
Value of securities deposited (average for the period) €bn 12,045 11,411
Number of transactions m 33.1 30.3
Global Securities Financing (average outstanding volume for the period) €bn 580.0 562.8
Transparency and stability key figures
Proportion of companies listed in the Prime Standard (for shares) as a percentage of
all listed companies4)
% 83 83
Number of calculated indices 10,7065) 12,111
Number of sustainable index concepts 23 19
System availability of cash market trading system (Xetra®
)
% 100 100
System availability of derivatives market trading system (T7/Eurex®
)
% 99.999 99.966
Market risk cleared via Eurex Clearing (gross monthly average) €bn 18,974 19,575

1) Adjusted for non-recurring earnings in connection with the merger of Direct Edge Holdings, LLC and BATS Global Markets, Inc.

2) Adjusted for non-recurring items in connection with the merger of Direct Edge and BATS

3) Thereof €4.7 billion certificates and warrants

4) Market capitalisation of companies listed in the Prime Standard (shares) in relation to the market capitalisation of all companies listed on the

Frankfurt Stock Exchange

5) In the course of 2013, no direct comparison to prior-year figure possible due to change in calculation base following change-over to new reporting system

Q1/2014: Deutsche Börse Group's revenue increases year-on-year and compared with previous quarters

  • n First-quarter performance was clearly positive, especially in the cash market business of the Xetra segment and the post-trading business of the Clearstream segment.
  • n In connection with the consolidation of EEX as at 1 January 2014, this development resulted in an increase in net revenue by 6 per cent to €514.2 million (Q1/2013: €484.3 million).
  • n Operating costs totalled €247.8 million (Q1/2013: €295.3 million incl. non-recurring items).
  • n Earnings before interest and tax (EBIT) increased significantly to €329.9 million in the first quarter of 2014 (Q1/2013: €192.0 million), mainly due to two non-recurring factors: firstly, higher costs incurred in Q1/2013, primarily for efficiency programmes, and secondly, non-recurring income in Q1/2014 that Deutsche Börse Group generated as a result of a revaluation of its equity interest in Direct Edge (some 32 per cent) in connection with the merger of Direct Edge and BATS. Adjusted for these non-recurring factors, EBIT amounted to €271.6 million (Q1/2013: €257.8 million).
  • n Basic earnings per share amounted to €1.19 for an average of 184.1 million shares; adjusted for nonrecurring items: €1.00 (Q1/2013: €0.66 for 184.1 million shares; adjusted for non-recurring items: €0.92).
  • n Operating cash flows excluding CCP positions amounted to €53.2 million in the first quarter of 2014 (Q1/2013: €146.3 million). This decrease is especially attributable to the payment of US\$151.9 million which occurred due to the settlement the Group entered into with OFAC in January.
  • n A dividend of €2.10 per share will be proposed to the Annual General Meeting on 15 May 2014.
  • n On 10 April, Eurex Clearing, Deutsche Börse Group's clearing house, received a clearing house licence under the European Market Infrastructure Regulation (EMIR). This licence confirms that the Group's clearing services fully meet the requirements of EMIR.

Development of Deutsche Börse AG shares since the beginning of Q1/2014

Daily Deutsche Börse closing share price Order book turnover of Deutsche Börse shares

DAX® performance1)

STOXX® Europe 600 Financials1)

1) Index-linked, closing price on 30 December 2013

Group interim management report

Basic principles of the Group

There have been the following changes to the basis of consolidation in the period under review compared with the fundamental information about the Group described on pages 92 to 103 of the corporate report 2013.

Changes to the basis of consolidation

Due to Deutsche Börse Group's attainment of control over European Energy Exchange AG (EEX), EEX and its subsidiaries have been fully consolidated since 1 January 2014. The revenue and costs generated from EEX have been assigned to the Eurex and Market Data + Services segments since the first quarter of 2014. EEX's earnings are therefore no longer included in the result from equity investments. For Eurex, this means an increase in net revenue from transaction fees and other net revenue on the one hand and higher operating costs on the other. For Market Data + Services, net revenue from the connectivity business has risen; conversely, the revenue from the technology services provided to EEX, which was previously accounted for using the equity method, has ceased.

Likewise, Impendium Systems Ltd., a provider of cloud-based software solutions located in London, has been consolidated since 1 January 2014. Net revenue and costs are reported in the Market Data + Services segment.

Already since 1 July 2013, the revenue and costs generated from trading structured products (certificates and warrants) have been allocated to the Xetra and Market Data + Services segments, after the joint venture with the Swiss exchange organisation SIX, Scoach Holding S.A., was terminated effective 30 June 2013.

Report on the economic position

Macroeconomic and sector-specific environment

The company's business operations and economic and sector-specific environment have not changed significantly compared with the presentation in the 2013 corporate report (pages 103 to 104). The main central banks maintained the strongly expansionary focus of their monetary policy in the first quarter of 2014. The European Central Bank (ECB) left its key interest rate at the historically low level of 0.25 per cent. The Federal Reserve Bank also continued its low interest rate policy. In addition to the central banks' sustained low interest rate policy, low market volatility also continued to dominate trading activity in the first quarter of 2014. The volatility index spiked to any significant extent on only a few isolated trading days; these spikes were short-lived and did not have any lasting effect. The initiatives to regulate the financial markets remain a challenge for the company's business environment, especially in the derivatives market. A lack of clarity surrounding the legal requirements and the impact they will have on market structures and market participants' business models have led to caution among some market participants.

According to its study published in April, the International Monetary Fund (IMF) expects economic activity to increase by around 1.2 per cent in the euro zone as a whole in 2014 (January 2014: increase of 1.0 per cent) and to expand by around 1.7 per cent in Germany (January 2014: 1.6 per cent). The study forecasts economic growth of around 2.9 per cent in the UK (January 2014: 2.4 per cent) and of around 2.8 per cent in the USA (January 2014: 2.8 per cent). The IMF forecasts the highest growth by far in 2014 – approximately 7 per cent – in Asian countries, and especially China, in anticipation of high domestic demand there. As a result of the divergence in estimates for the different economic regions, global economic growth is projected to be around 3.6 per cent in 2014. Thus, the IMF's study shows that the situation in Europe recovered slightly better than it had been expected at the beginning of the year.

Trading activity trends on Deutsche Börse Group's cash and derivatives markets in the year to date basically correspond to those of other European exchange organisations with similar product portfolios. However, as the situation within the euro zone remains fragile – at present, the European Central Bank is discussing possibilities of further easing its monetary policy –, trading volumes in interest rate derivatives in particular have been below average.

There were no changes in corporate strategy and management in the first quarter. For a comprehensive presentation of them, please refer to the details provided in the 2013 corporate report (pages 116 to 118).

Research and development

As a service provider, Deutsche Börse Group does not engage in research and development activities comparable with those of manufacturing companies. This section of the report has therefore been omitted.

Results of operations

Results of operations in the first quarter of 2014

In the cash market, there seems to be a gradual return of investor confidence in the stable long-term growth of the euro zone. Capital that had been withdrawn from some European countries and invested in the USA or Asia as a result of the euro currency crisis and the debt crisis returned to Europe and led to a significant increase in trading activity in the cash market. So far, the derivatives market has failed to benefit from this development, as the market environment created by the central banks' sustained low interest rate policy and low stock market volatility prevented the cyclical business drivers from having a similar effect here as, for example, in the USA, prompting trading participants to place trading orders more cautiously, as in the previous year. The business of Clearstream, the segment responsible for posttrade activities, is recording a continuous upward trend especially through acquiring major customers. In particular due to the Liquidity Hub and an advanced strategy regarding the creation of a common settlement platform for the euro zone, TARGET2-Securities (T2S), Clearstream sees itself as extremely well positioned to enable customers to utilise collateral efficiently. In addition, Clearstream is able to score points in global securities financing with its liquidity management services, which allow banks to deploy their capital as efficiently as possible. Deutsche Börse Group's technology and market data business (Market Data + Services segment) shows significant upswing in the index business.

In total, Deutsche Börse Group's net revenue rose by 6 per cent year-on-year to €514.2 million in Q1/2014 (Q1/2013: €484.3 million). In addition to the slightly improved business environment, the positive development is also due to the consolidation of EEX and Impendium Systems in Q1/2014 as well as of Scoach Holding S.A. in the third quarter of 2013. Without these consolidation effects in the amount of €20.2 million, net revenue increased by 2 per cent. Net revenue is composed of sales revenue plus net interest income from banking business and other operating income, less volume-related costs.

In an environment of persistently low interest rates, a rise in average overnight customer deposits led to a slight increase, to €8.4 million, in net interest income from banking business generated in the Clearstream segment in Q1/2014 (Q1/2013: €8.2 million).

Operating costs amounted to €247.8 million, significantly down year-on-year (Q1/2013: €295.3 million), because this had included costs for one-off items, notably efficiency programmes, totalling €65.8 million. One-off items amounted to €4.4 million in Q1/2014. Adjusted for these, operating costs were €13.9 million higher than in Q1/2013. This increase is due to the abovementioned consolidation effects of €12.2 million (see section "Changes to the basis of consolidation") and higher investments in growth initiatives.

The result from equity investments amounted to €63.5 million (Q1/2013: €3.0 million). The significant increase is attributable to non-recurring income of €62.7 million in connection with the merger of Direct Edge Holdings, LLC (Direct Edge) and BATS Global Markets, Inc. (BATS) at the end of January 2014. The revaluation of the existing shares in Direct Edge, in which Deutsche Börse Group held around 32 per cent via its subsidiary ISE, resulted in a gain of €46.5 million. In addition, the Group received a special dividend of €16.2 million after the transaction had been completed. Adjusted for these factors, the result from equity investments amounted to €0.8 million.

The growth in net revenue and decrease of operating costs, and in particular the non-recurring income in connection with the revaluation of the existing shares in Direct Edge, lifted EBIT to €329.9 million in the first quarter of 2014 (Q1/2013: €192.0 million). Adjusted for non-recurring cost items (efficiency programmes) and for non-recurring items in the result from equity investments, EBIT in Q1/2014 was €271.6 million (Q1/2013: €257.8 million).

The Group's financial result for the first quarter of 2014 improved to €–10.9 million (Q1/2013: €–23.2 million) primarily due to the favourable refinancing of non-current financial liabilities completed in 2013.

The tax rate in the first quarter of 2014 was 26.0 per cent (Q1/2013: 26.0 per cent), adjusted for nonrecurring income related to the merger of Direct Edge and BATS.

Consolidated net income for the first quarter of 2014 amounted to €219.0 million (Q1/2013: €121.2 million). Adjusted for the aforementioned non-recurring items, net income increased by 9 per cent to €184.7 million (Q1/2013: €169.9 million).

Basic earnings per share, based on the weighted average of 184.1 million shares outstanding, improved to €1.19 in the first quarter of 2014 (Q1/2013: €0.66 for 184.1 million shares outstanding); adjusted €1.00 (Q1/2013: €0.92).

Comparison of results of operations with the forecast for 2014

Deutsche Börse Group's business performance in the first quarter of 2014 confirms the statements made in the report on expected developments on pages 171 to 182 of the 2013 corporate report. On the basis of net revenue, EBIT and consolidated net income generated in the first quarter of 2014, Deutsche Börse Group is currently in the upper half of the respective forecast ranges. A sequential increase in operating costs is expected in each quarter of the current year. They will rise firstly for seasonal reasons in the fourth quarter, and secondly due to the planned investments in growth initiatives, which will have a greater impact on costs as the year progresses. For this reason, the Group confirms its operating costs forecast for 2014.

31 Mar 2014 Quarter ended
31 Mar 2013
Earnings per share (basic) 1.19 0.66
Earnings per share (basic, adjusted) 1.00 0.92
Opening price1) 60.20 46.21
High2) 63.29 52.30
Low2) 54.80 46.01
Closing price (as at 31 Mar) 57.77 47.25
Number of shares (as at 31 Mar) m 193.0 193.0
Market capitalisation (as at 31 Mar) €bn 11.1 9.1

Deutsche Börse AG share: key figures

1) Closing price on preceding trading day 2) Intraday price

Eurex segment

  • n Net revenue in the Eurex segment increased by 5 per cent year-on-year to €207.2 million (Q1/2013: €197.5 million). Of this, €14.9 million was attributable to EEX transaction fees and other EEX revenue. Without taking EEX's consolidation into account net revenue in the Eurex segment would have slightly declined.
  • n EBIT rose to €168.2 million (Q1/2013: €94.6 million). Of this amount, €62.7 million was attributable to non-recurring income that Deutsche Börse Group generated as a result of a revaluation of its shares in Direct Edge in connection with the merger of Direct Edge and BATS.

As EEX has been consolidated since the first quarter of 2014, transaction fees as well as other revenue and costs are reported in the Eurex segment.

The derivatives market environment in the first quarter of 2014 remained largely unchanged compared with the previous year: uncertainty about the effects of regulatory initiatives, comparatively low stock market volatility, low inflation (in some cases with deflationary tendencies), persistently low interest rates and no prospect of changes in interest rates. Against this background, demand for hedging and trading activities by participants on the European derivatives exchanges declined year-on-year. The number of European futures and options contracts traded on Eurex declined by 6 per cent to 378.6 million contracts (Q1/2013: 401.3 million). Including the International Securities Exchange (ISE), which showed a stable year-on-year development of traded contracts in the first quarter of 2014, the trading volume was 541.1 million contracts (Q1/2013: 558.4 million).

In spite of the continuing difficult derivatives market environment, Eurex slightly increased the trading volume of the equity index derivatives traded in Europe; the number of contracts traded rose by 5 per cent to 180.3 million in the first quarter of 2014 (Q1/2013: 171.9 million). This means that equity index derivatives are the highest-volume product group on the Eurex derivatives exchange. Higher volatility on individual trading days led to more active trading of equity index derivatives, which in turn resulted in an overall increase in the first quarter. Eurex set new monthly and quarterly records with futures and options on RDX, the Russian Depositary Index, and in trading of the Eurex KOSPI product since the minimum contract size was changed in June 2012.

Trading volumes for European interest rate derivatives fell year-on-year to 127.0 million contracts in the first quarter of 2014 (Q1/2013: 143.8 million). In the prior-year quarter, the expectation that the European Central Bank would adjust key interest rates had led to comparatively high volumes for interest rate derivatives; this accounts for the 12 per cent fall in volume. By comparison, the number of interest rate derivatives traded in the first quarter of 2014 was up on the previous two quarters.

Volumes in the equity derivatives product group were down 17 per cent to 68.7 million contracts in the first quarter of 2014 (Q1/2013: 82.9 million).

Dividend derivatives continued their positive performance, reaching the highest level in a quarter since they were launched. At 2.7 million contracts in the first quarter of 2014, the number of traded contracts rose by 42 per cent on the prior year (Q1/2013: 1.9 million).

Breakdown of net revenue in the Eurex segment

The number of US options contracts on ISE increased slightly by 3 per cent in the first quarter of 2014 to 162.5 million (Q1/2013: 157.1 million). ISE's US equity options market share was 16.5 per cent (Q1/2013: 17.3 per cent). Gemini, the ISE marketplace geared primarily towards the trading requirements of private investors, has now firmly established itself among the trading platforms for US options.

As a consequence of its majority interest in EEX, Deutsche Börse Group has attained the majority in EEX's supervisory board. Therefore, EEX has become a fully consolidated subsidiary since 1 January 2014. Eurex has thus further diversified its product offering and now offers, among others, commodities derivatives. EEX is the leading European energy exchange and marketplace for power derivatives, natural gas and CO2 emission allowances on the derivatives and spot markets, as well as for coal and Guarantees of Origin (i.e. certificates which can be used for disclosure purposes, e.g. to prove that a consumed MWh was generated from renewable sources). Furthermore, EEX plans to further expand both its portfolio and its reach and therefore in Q1/2014 acquired a majority interest in Cleartrade Exchange, a Singapore-based futures exchange founded in 2010. In cooperation with Cleartrade, EEX will create a joint global product offering in the commodities area. In the first quarter, the total volume in power trading was 350.3 TWh, an increase of 5 per cent (Q1/2013: 333.3 TWh). Trading of gas products increased by 117 per cent to 121.7 TWh (Q1/2013: 56.2 TWh). In emission rights trading, 223.6 tonnes of CO2 were traded, an increase of 14 per cent on the corresponding quarter in the previous year (Q1/2013: 195.6 t CO2 ).

Q1/2014 Q1/2013 Change
Financial derivatives m contracts m contracts %
Total Eurex and ISE 541.1 558.4 –3
European derivatives1) 378.6 401.3 –6
European equity index derivatives2) 180.3 171.9 5
European interest rate derivatives 127.0 143.8 –12
European equity derivatives2) 68.7 82.9 –17
US options (ISE) 162.5 157.1 3
Commodities3) TWh / m t C02 TWh / m t C02
Electricity 350.3 333.3 5
Gas 121.7 56.2 117
Emissions trading 223.6 195.6 14
Repo business4) € bn € bn %
Total Eurex Repo 216.7 207.1 5
GC Pooling® 148.7 145.6 2
Euro market 39.8 28.6 39
CHF market 28.2 32.9 –14

Eurex segment: key indicators

1) The total shown does not equal the sum of the individual figures as it includes other traded products such as ETFs, volatility, agricultural and precious metals derivatives.

2) Dividend derivatives have been allocated to the equity index and equity derivatives.

3) Volume traded on EEX in terawatt-hours (TWh) for power and gas trading and in CO2 tonnes for trading in emission rights

4) Average outstanding volume on Eurex Repo® (single-counted) In the first quarter of 2014, the average outstanding volume on Eurex Repo, the marketplace for the collateralised money market in Swiss francs and euros as well as for the GC Pooling® (General Collateral Pooling) offering, increased by 5 per cent to €216.7 billion (Q1/2013: €207.1 billion, single-counted for both periods). Demand for collateralised money-market transactions led to a positive trend in the euro market due to continued uncertainty concerning the assessment of counterparty risk in the unsecured money market. Here, the average outstanding volume increased by 39 per cent to €39.8 billion (Q1/2013: €28.6 billion). In the GC Pooling collateralised money market, average outstanding volumes were €148.7 billion, up 2 per cent on the prior-year quarter (Q1/2013: €145.6 billion, single-counted for both periods).

EurexOTC Clear, the Eurex clearing offering for over-the-counter interest rate swaps, gained more new mem-bers, with leading national and international banks and asset managers ABN Amro Clearing, BNP Paribas, Morgan Stanley and Union Investment joining in the first quarter. The total number of clearing members as at 31 March 2014 was 32; in total, around 120 customers have signed up for a connection. By being connected to EurexOTC Clear, market participants can clear OTC derivatives in advance of the introduction of a clearing obligation for these financial instruments when the European Market Infrastructure Regulation (EMIR) is implemented.

In this context Eurex Clearing, Deutsche Börse Group's clearing house, was authorised on 10 April to be a clearing house in accordance with the European Market Infrastructure Regulation (EMIR) by its national competent authority BaFin (Federal Financial Supervisory Authority). The authorisation confirms that Eurex Clearing is fully EMIR compliant. Therefore, Eurex Clearing can already provide its members services needed to meet the upcoming clearing obligation for derivatives in Europe.

Xetra segment

  • n Net revenue rose by 19 per cent to €43.5 million (Q1/2013: €36.6 million). This figure contains the proceeds (€2.6 million) from transaction fees for structured product trading that are recognised in the Xetra segment starting in the third quarter of 2013.
  • n EBIT increased to €27.5 million (Q1/2013: €10.4 million).

Deutsche Börse Group's cash market has had a strong first quarter of 2014. After investors had withdrawn capital from Europe and invested it primarily in the USA and Asia in the wake of the euro crisis and the debt crisis experienced by some European states, they are now investing more in Europe again. This return of capital is also reflected in the German equity market, which is viewed by investors as a safe and reliable market. The daily trading volume on Xetra® increased by 22 per cent year-on-year to €316.3 billion (Q1/2013: €260.3 billion). In the first quarter of 2014, the number of Xetra transactions increased by 20 per cent year-on-year to 55.5 million (Q1/2013: 46.2 million). The average value per transaction was €11.4 thousand (Q1/2013: €11.3 thousand). The Xetra segment generated a total of €28.2 million in net revenue from trading (Q1/2013: €21.8 million). The net revenue of the central counterparty for equities increased year-on-year in the first quarter of 2014, to €8.2 million (Q1/2013: €7.1 million). Other net revenue declined to €7.1 million (Q1/2013: €7.7 million).

With a trading volume of €15.6 billion in the first quarter of 2014, the Frankfurt Stock Exchange saw an increase of 54 per cent as against the previous year (Q1/2013: €10.1 billion). Due to the termination of the Scoach joint venture with SIX Swiss Exchange, the certificates and warrants traded on the Frankfurt Stock Exchange – amounting to €4.7 billion – have been included in calculating the volumes since the beginning of the third quarter of 2013.

On Tradegate Exchange, which is operated by a company in which Deutsche Börse holds a majority interest, investors traded securities with a volume of €15.7 billion in the first quarter of 2014, a 50 per cent increase year-on-year (Q1/2013: €10.5 billion).

Deutsche Börse operates Europe's leading marketplace for exchange-traded funds (ETFs). As at 31 March 2014, a total of 1,018 ETFs were listed on Deutsche Börse (31 March 2013: 1,030 ETFs), meaning that it offers by far the largest selection of ETFs of all the European exchanges. The assets under management held by ETF issuers reached a new record high of €236.7 billion (Q1/2013: €208.0 billion). The segment's trading volume increased by 8 per cent to €33.8 billion in the first quarter of 2014 (Q1/2013: €31.2 billion). Deutsche Börse's European market share continues to lead the market, at 32 per cent (Q1/2013: 33 per cent).

Besides the marketplace for ETFs, Deutsche Börse operates a segment for exchange-traded commodities (ETCs). Xetra-Gold® , a physically backed bearer bond issued by Deutsche Börse Commodities GmbH, is the most successful ETC product. In the first quarter of 2014, the falling gold price and lower demand from the private investor sector led to a decline in the volume held. At the end of the first quarter of 2014, Deutsche Börse Group held 46.4 tonnes of gold in custody (31 March 2013: 53.7 tonnes). Due to the slide in gold prices at the same time, the value was equivalent to €1.4 billion (31 March 2013: €2.2 billion).

In the listing business, Deutsche Börse recorded two new admissions in the first quarter of 2014: in both cases, these were technical listings without a public offer. Furthermore, 27 companies implemented a capital increase; the placement volume amounted to around €1 billion. Additionally, two companies used the option of issuing corporate bonds in the Entry Standard for bonds. The issue volume as given in the prospectuses amounted to a total of €60 million.

Breakdown of net revenue in the Xetra segment

In February, Deutsche Börse acquired, for a sum in the lower single-digit millions (sterling), a minority interest in UK company Bondcube Limited, which is developing an innovative trading system for fixedincome securities.

Xetra segment: key indicators

Q1/2014
€bn
Q1/2013
€bn
Change
%
Trading volume (order book turnover, single-counted)
Xetra 316.3 260.3 22
Börse Frankfurt1) 15.62) 10.1 54
Tradegate Exchange 15.7 10.5 50

1) Formerly Xetra Frankfurt Specialist Trading; since Q3/2013 including certificates and warrants due to consolidation of Scoach effective 1 July 2013 2) Thereof €4.7 billion in certificates and warrants

Clearstream segment

  • n At €169.9 million, Clearstream registered a 7 per cent increase in net revenue against the prior-year period (Q1/2013: €158.7 million) in the first quarter of 2014.
  • n EBIT stood at €84.5 million in the first quarter of 2014 (Q1/2013: €49.5 million).

The average value of assets under custody in the first quarter of 2014 increased to €12.0 trillion (Q1/2013: €11.4 trillion). This was due on the one hand to the sustained price gains of equities on the German domestic market, which showed an increase in assets under custody, to €5.7 trillion in Q1/2014 (Q1/2013: €5.4 trillion). On the other hand, international assets under custody in the first quarter of 2014 were at €6.4 trillion, 5 per cent above last year (Q1/2013: €6.0 trillion). Customer gains contributed to this growth. Net revenue in the custody business increased slightly to €84.2 million for Q1/2014 (Q1/2013: €82.8 million).

The number of settlement transactions processed by Clearstream increased by 9 per cent to 33.1 million (Q1/2013: 30.3 million). This increase is due to higher trading activity by market participants in the first quarter of 2014. Totalling 11.4 million transactions, Clearstream's international settlement activity for the first quarter of 2014 was 11 per cent higher than in the prior-year quarter (Q1/2013: 10.3 million). Settlement of international off-exchange (over-the-counter, OTC) transactions increased by 8 per cent to 9.2 million (Q1/2013: 8.5 million), thus accounting for 81 per cent of all international transactions. Settlement of stock exchange transactions went up by 22 per cent to 2.2 million (Q1/2013: 1.8 million), thus accounting for 19 per cent of all international transactions. In the domestic business, settlement transactions went up by 9 per cent to 21.7 million for first quarter (Q1/2013: 20.0 million), due to higher trading activity of German retail investors. Here, 65 per cent were stock-exchange transactions and 35 per cent OTC transactions. Stock-exchange transactions increased to 14.2 million (Q1/2013: 13.1 million), and OTC transactions rose to 7.5 million (Q1/2013: 6.9 million). Net revenue in the settlement business went up by 23 per cent in the first quarter of 2014, to €32.6 million (Q1/2013: €26.5 million). The difference in growth rates between volume and sales is due to temporary additional fees, introduced on 1 April 2013, to cover connectivity costs to TARGET2-Securities (T2S).

The success of Investment Funds Services contributed positively to the custody and settlement business. In the first quarter of 2014, Clearstream processed 2.2 million transactions, a 16 per cent increase over the previous year (Q1/2013: 1.9 million). The average value of investment funds under custody for the first quarter of 2014 was €294.3 billion, 17 per cent higher than last year (Q1/2013: €250.9 billion).

Q1/2014 Q1/2013 Change
Custody €bn €bn %
Value of securities deposited (average value) 12,045 11,411 6
international 6,355 6,049 5
domestic 5,690 5,362 6
Settlement m m %
Securities transactions 33.1 30.3 9
international – OTC 9.2 8.5 8
international – on-exchange 2.2 1.8 22
domestic – OTC 7.5 6.9 9
domestic – on-exchange 14.2 13.1 8
Global Securities Financing €bn €bn %
Outstanding volume (average value) 580.0 562.8 3
Average daily cash balances €m €m %
Total1) 11,274 10,849 4
euros 4,760 4,274 11
US dollars 4,909 4,656 5
other currencies 1,605 1,919 –16

Clearstream segment: key indicators

1) Contains approximately €1.2 billion (Q1/2013: €1.3 billion) currently restricted by relevant EU and US sanction programmes

Within the Global Securities Financing (GSF) business, which includes triparty repo, securities lending and collateral management, average outstandings increased year-on-year to €580.0 million (Q1/2013: €562.8 million). The diversified product mix ensured a higher growth of total net revenue in the GSF business, which was up by 19 per cent to €15.7 million in the first quarter of 2014 (Q1/2013: €13.2 million).

Overnight customer cash deposits increased in the first quarter of 2014 to reach an average of €11.3 billion (Q1/2013: €10.8 billion). Adjusted for assets restricted by relevant EU and US sanction programmes, customer cash deposits increased to €10.1 billion (Q1/2013: €9.5 billion). Net interest income from Clearstream's banking business rose by 2 per cent to €8.4 million in Q1/2014 (Q1/2013: €8.2 million). The comparatively low net interest income reflects the sustained low levels of interest rates.

In the first quarter, Clearstream stepped up the strategically important expansion of its service offering as part of TARGET2-Securities (T2S). T2S is the European Central Bank's pan-European settlement platform, to which Clearstream will be connected in 2016 – a total of 24 central securities depositories in the euro zone will use T2S. Clearstream would like to enhance T2S beyond the actual added value offered by the platform and announced in January that it intended to settle a large number of additional assets (including eurobonds) via T2S. The aim is to facilitate more efficient settlement for customers via T2S across a wide range of asset classes. In addition to settlement, Clearstream aims to use T2S to change its approach to servicing assets. In March, the company signed an agreement with custodian banks BNP Paribas Securities Services, Intensa Sanpaolo, BBVA, Citi and Erste Bank, which will improve the servicing of assets held with Clearstream in the T2S market environment. This will be achieved through proximity to the respective domestic markets and detailed knowledge of local market practices.

In the area of collateral management, Clearstream signed a letter of intent with Norwegian central securities depository Verdipapirsentralen ASA (VPS) in February. After Brazil, Australia, South Africa, Spain, Canada and Singapore, Norway is now the seventh market in which Clearstream technology will be used. In March, Clearstream also positioned a bilateral collateral management product, OTC Collateral, on the market. OTC Collateral leads to a significant increase in the service offering for OTC transactions and will help customers to overcome collateral fragmentation and to optimise allocation by including the option to cover OTC, triparty and central counterparty (CCP) risk positions from a single collateral pool, Clearstream's Global Liquidity Hub.

In February, Clearstream also formalised its market approach for supporting the internationalisation of the renminbi. Among other things, this aims to allow foreign investors to invest in the Chinese currency, to improve the liquidity of the offshore RMB through suitable solutions, to increase the scope of RMB products and services, and to contribute to the growth and maturity of the RMB bond market.

Market Data + Services segment

  • n Net revenue rose to €93.6 million (Q1/2013: €91.5 million).
  • n EBIT increased significantly by 33 per cent year-on-year to €49.7 million (Q1/2013: €37.5 million).

The trading signals business declined slightly in the tense market environment in the first quarter of 2014: current efforts to regulate automated trading more tightly are leading to uncertainty in the trading departments of banks and financial services institutions. In addition, user numbers are declining due to structural changes in the financial services industry. Net revenue fell slightly in the first quarter of 2014

compared with the prior-year quarter to €34.1 million (Q1/2013: €36.0 million). In order to give its subscribers more options, the segment further diversified the machine-readable data on offer. Trading participants can now adjust their algorithmic trading strategies in time and fine-tune their risk management. The "Order by Order" information product provides full transparency for the most important Eurex futures. It offers complete insight into the Eurex order book, which consists of some 150 instruments. The detailed trading and order book data benefits institutional investors who depend on extremely granular market data for implementing their trading strategies.

Deutsche Börse operates its index business via its subsidiary STOXX Ltd. It generates its revenue from calculating and marketing indices and benchmarks that are used by banks and fund management companies mainly as underlyings for financial instruments. The index business grew in the first quarter of 2014; net revenue increased to €22.0 million (Q1/2013: €19.4 million). The licensing revenue for these products increased owing to the improved market trends in equity index derivatives trading on Eurex and the increase in ETF-managed assets. In order to further internationalise its business, Deutsche Börse licensed its blue-chip DAX index to a Japanese fund management company. This company launched a passive investment fund that replicates the performance of the DAX. This makes it easier for Japanese investors to invest in the DAX, the barometer for economic activity in Germany, and to participate in its performance.

Net revenue from the external technology solutions business fell to €12.8 million in the first quarter of 2014 (Q1/2013: €15.2 million). This can be attributed primarily to the consolidation of EEX from the first quarter of 2014 and of Scoach from the third quarter of 2013, as a result of which external revenue in the amount of €2.2 million for EEX- and respectively Scoach-related services in the Technology Solutions business area was no longer recognised. On the other hand, connectivity income generated by EEX with external customers is now recognised following the consolidation of the subsidiary as at 1 January 2014 in the Connectivity business area of the Market Data + Services segment; this amounted to €1.5 million. In total, these two effects reduced the segment's net revenue in the first quarter of 2014 by some €0.7 million.

Breakdown of net revenue in the Market Data + Services segment

The Market Data + Services segment generates connectivity revenue from connecting trading participants on the cash and the derivatives markets, from users of the data services and from customers of the technology solutions. This revenue depends on the bandwidth connections required for the services in question. Through the further development of data services, e.g. the introduction of the bandwidthintensive "Order-by-Order" product and the new connectivity formats for derivatives trading platform T7, which was launched last year, as well as additional net revenue owing to the consolidation of EEX and Scoach (see above), connectivity revenue increased to €19.2 million in the first quarter of the year (Q1/2013: €16.5 million).

Other revenue comprises the provision of data to the back offices of financial services providers (e.g. the TRICE® reporting service), among other things. This amounted to €5.5 million in the first quarter of 2014 and was therefore above the prior-year level (Q1/2013: €4.4 million). In order to expand its business with information services for regulatory reporting compliance, Deutsche Börse acquired London-based software provider Impendium Services for a sum in the single-digit millions. Impendium assists customers in complying with regulatory requirements in Europe, North America and the Asia-Pacific region. The transaction is part of Deutsche Börse's growth strategy, which aims to offer software tools that help customers to cope with the increasing flood of data on the financial markets and thus to automate related business processes.

Financial position

Cash flow

Deutsche Börse Group generated cash flow from operating activities before changes in reporting daterelated CCP positions of €53.2 million in the first quarter of 2014 (Q1/2013: €146.3 million). The decrease is in particular due to a payment of US\$151.9 million in connection with a settlement the Group entered into with OFAC (Office of Foreign Assets Control). Including the changes in the CCP positions, cash flow from operating activities was €56.7 million (Q1/2013: €41.4 million). The change in cash flows from operating activities before changes in reporting date-related CCP positions can be explained as follows:

  • n Net income for the period up by €102.4 million to €227.3 million
  • n Decrease of €6.9 million in non-current provisions, compared with an increase in the first quarter of 2013, due in particular to the launch of a €39.7 million restructuring programme
  • n Increase in non-cash income to €41.4 million in the first quarter of 2014, compared with €4.8 million in the first quarter of 2013, especially due to the remeasurement of the shares in Direct Edge Holdings LLC in connection with the merger of Direct Edge Holdings LLC and BATS Global Markets, Inc., which led to non-cash income of €46.4 million.
  • n Increase of €181.9 million in working capital (Q1/2013: increase in working capital of €33.6 million), primarily driven by an increase in current liabilities of €100.0 million (Q1/2013: €28.1 million), which was in turn attributable to a €132.7 million rise in trade receivables. Current liabilities declined by €81.7 million (Q1/2013: €5.2 million), due in particular to a payment of US\$151.9 million in connection with a settlement the Group entered into with OFAC.

Cash inflows from investing activities amounted to €571.7 million in Q1/2014 (Q1/2013: cash outflows of €32.8 million). The increase can primarily be attributed to the following changes:

  • n Cash inflows due to maturing collateralised cash investments with an original maturity of more than three months amounted to €588.2 million (Q1/2013: €0 million); in addition securities of €81.9 million matured or were sold (Q1/2013: €2.3 million).
  • n Moreover, the Group acquired securities with an original maturity of more than three months in an amount of €95.0 million (Q1/2013: €8.5 million) as well as an investment of €33.7 million in Taiwan Futures Exchange Corporation, Taipei.
  • n Due to the consolidation of the European Energy Exchange AG, Leipzig, as at 1 January 2014, cash flow resulted in an increase of €61.5 million. Since no purchase price was payable, there were no cash outflows. There was a cash outflow of €3.1 million in connection with the acquisition of Impendium Ltd, London.
  • n At €21.9 million, investments in intangible assets and property, plant and equipment were at the prioryear level; they related in particular to investments by the Clearstream (€9.8 million) and Eurex (€11.6 million) segments. These investments were primarily attributable to expansion investments in the field of settlement and collateral management systems (€8.0 million), as well as trading and clearing systems (€8.3 million).

Cash outflows from financing activities amounted to €10.1 million (Q1/2013: cash inflows of €593.3 million). They resulted from commercial paper being issued in an amount of €89.9 million (Q1/2013: nil) and commercial paper maturing in an amount of €100.0 million (Q1/2013: nil).

In March 2013, Deutsche Börse AG had issued a euro-denominated bond with a term of five years and a principal amount of €600.0 million.

Cash and cash equivalents as at 31 March 2014 thus amounted to €562.5 million (31 March 2013: €1,147.7 million).

Capital structure

As a rule, the Group aims to achieve a dividend distribution ratio of 40 to 60 per cent of adjusted consolidated net income. Moreover, it implements share buy-backs in order to distribute to its shareholders funds not required for the company's operating business and its further development. This policy is determined at all times by the company's capital requirements, which depend on the legal and regulatory framework as well as its credit rating, economic capital and liquidity needs.

Customers of the company expect to have conservative interest coverage and debt/equity ratios and to maintain strong credit ratings. Deutsche Börse Group therefore continues to pursue its objective of achieving an interest coverage ratio (ratio of EBITDA to interest expenses from financing activities) of at least 16 at Group level in order to meet the rating agencies' current requirements for an "AA" rating for Deutsche Börse AG. Deutsche Börse Group met this objective in Q1/2014, achieving an interest coverage ratio of 28.4 (Q1/2013: 15.8). This figure is based on a relevant interest expense of €10.6 million and an adjusted EBITDA of €300.8 million. Due to the successful refinancing accomplished in 2013, interest expense decreased significantly year-on-year. This again had a positive impact on the interest coverage ratio. In addition, Deutsche Börse aims to achieve a ratio of interest-bearing gross debt to EBITDA of no more than 1.5 at Group level. This performance indicator also plays a material role in maintaining the parent company's current "AA" rating. In the first quarter, the Group met the target ratio, at 1.3. This figure is based on gross debt of €1,612.6 million and an adjusted EBITDA of €300.8 million.

Moreover, to ensure the continued success of the Clearstream segment, which is active in securities custody and settlement, the company aims to retain Clearstream Banking S.A.'s strong "AA" credit rating. Deutsche Börse AG also needs to maintain a strong credit profile to support activities at its Eurex Clearing AG subsidiary.

For financial year 2013, Deutsche Börse AG is proposing to the Annual General Meeting to resolve payment of a dividend of €2.10 per no-par value share (financial year 2012: €2.10). This proposal represents a distribution ratio of 61 per cent, adjusted for merger and acquisition costs, as well as efficiency programme costs (2012: 58 per cent, adjusted for merger and acquisition costs, efficiency programme costs and income from the remeasurement of the equity component of the purchase price for the acquisition of the shares of Eurex Zürich AG held by SIX Group AG). For 184.1 million dividend-bearing no-par value shares, this would result in a total dividend of €386.6 million (2012: €386.5 million).

Net assets

As at 31 March 2014, Deutsche Börse Group's non-current assets amounted to €11,605.7 million (31 March 2013: €5,082.0 million). They consisted primarily of intangible assets and financial assets as well as of financial instruments of its central counterparties. Intangible assets primarily included goodwill of €2,084.0 million (31 March 2013: €2,106.8 million) and other intangible assets of €923.0 million (31 March 2013: €890.7 million). Non-current receivables and securities from banking business of €1,271.9 million (31 March 2013: €1,418.3 million) accounted for the largest part of financial assets, which amounted to €1,523.9 million as at the balance sheet date (31 March 2013: €1,678.0 million). Non-current assets were matched by equity of €3,561.0 million (31 March 2013: €3,312.8 million). Non-current liabilities totalling €8,644.6 million (31 March 2013: €2,052.0 million) mainly related to financial instruments of the central counterparties amounting to €6,633.1 million (31 March 2013: nil), which are reported separately from the current financial instruments of Eurex Clearing AG due to a maturity of more than three months, interest-bearing liabilities of €1,522.7 million (31 March 2013: €1,545.3 million) as well as deferred tax liabilities of €289.9 million (31 March 2013: €297.1 million).

Among other things, changes in current liabilities were the result of the increase in liabilities from banking business to €15,541.3 million (31 March 2013: €14,175.2 million). Commercial paper amounting to nominally €90.0 million was outstanding as at the end of the first quarter of 2014 (31 March 2013: nil).

Report on post-balance sheet date events

On 23 April 2014, Deutsche Börse announced that its subsidiary Clearstream and Citco have signed an agreement for the purchase of Citco's Financial Institution Hedge Fund custody processing business to Clearstream. The purchase price amounts to a sum in the mid double digit million euro range. The deal allows Clearstream to significantly expand its hedge fund services for financial institutions.

The acquisition of Citco Global Securities Services' (CGSS) hedge fund custody infrastructure adds around 300 CGSS employees to Clearstream and licences Clearstream to use Citco's custody IT infrastructure. The two companies will ensure the takeover takes place in a gradual way in order to ensure a smooth transition.

Risk report

Deutsche Börse Group provides detailed information on its operating environment, strategy, principles, organisation, processes, methods and concepts of its risk management in its 2013 corporate report.

The assessment of operational, financial, business and project-related risks did not change significantly in the period under review.

Operational risks for Deutsche Börse Group relate to availability, processing, material goods, as well as litigation and business practice. Further information concerning operational risk and the measures to mitigate them can be found in Deutsche Börse Group's corporate report 2013 on pages 153 to 158.

In its 2013 corporate report, Deutsche Börse Group informed about proceedings initiated by various US plaintiffs on 30 December 2013 seeking the surrender of certain positions claimed to be held for Bank Markazi in Luxembourg. No claims for damages were asserted against Clearstream in these proceedings.

On 26 November 2012, the insolvency administrator of Lehman Brothers Bankhaus AG (LBB AG), Dr Michael C. Frege, brought an action against Eurex Clearing AG before the Frankfurt/Main Regional Court. On the basis of German insolvency law, Dr Frege is demanding from Eurex Clearing AG the repayment of €113.5 million and payment of another amount of around €1.0 million plus interest of 5 percentage points above the base rate accrued on the total amount since 13 November 2008. Eurex Clearing AG considers the claim unfounded and is defending itself against the insolvency administrator's action. On 14 March 2014, the insolvency administrator and Eurex Clearing signed an irrevocable settlement stating that they would each waive all claims arising from their previous legal relationship. As a result, the insolvency administrator withdrew the claim.

On 12 November 2012, the Chicago Board Options Exchange (CBOE) filed a patent infringement law suit against the International Securities Exchange (ISE) (the "CBOE Litigation"). In the CBOE Litigation, CBOE alleges US\$525 million in damages for infringement of three patents, which relate to systems and methods for limiting market-maker risk. ISE believes that CBOE's damages claim lacks merit because it is unsupported by the facts and the law. ISE intends to vigorously defend itself in this lawsuit. Upon ISE's motion, the case was recently transferred to the competent courts of New York City.

In November 2006, ISE itself filed a patent infringement lawsuit against CBOE (the "ISE Litigation"). In the ISE Litigation, as of December 2012, ISE alleged US\$475 million in damages for infringement of ISE's patent which relates to systems and methods for operating an automated exchange. The ISE Litigation was scheduled for trial in March 2013. However, in the course of the pre-trial motions, some of the decisions of the trial judge establishing ISE's burden of proof to succeed in trial, were extremely adverse to ISE. As a result, ISE believed that it could not prove its case of infringement, and therefore determined to move straight to an appeal of those rulings and forego a trial. On 12 April 2013, ISE filed an appeal of the rulings with the U.S. Court of Appeals for the Federal Circuit ("CFAC"). On 7 April 2014, the CFAC affirmed in part and reversed in part the rulings of the trial court, but the net result is that ISE does not have a viable case left in the matter. On 17 April, ISE filed with the CFAC a petition for rehearing. ISE expects a decision on the petition for rehearing in Q2/2014.

On 2 April 2014, Deutsche Börse AG announced ad hoc that Clearstream Banking S.A. has been informed by its U.S. counsels, that the United States Attorney for the Southern District of New York has made Clearstream subject of criminal investigation in connection with alleged violations of U.S. money laundering and Iran sanction laws. Currently, while Clearstream is cooperating with the U.S. Attorney, the investigation is in a very early stage.

Deutsche Börse Group is exposed to financial risks mainly in the form of credit risk and liquidity risk in the financial institutes Clearstream Holding group and Eurex Clearing AG. In addition, the Group's cash investments and receivables are subject to credit risk. The majority of cash investments involve shortterm transactions that are collateralised, thus minimising liquidity risk as well as market risk from cash investments. Market risk is immaterial for the entire Group. Further information on financial risks can be found on pages 158 to 164 of the 2013 corporate report.

Business risk reflects the sensitivity of the Group to macroeconomic developments and its vulnerability to event risk, such as regulatory initiatives or changes in the competitive environment. In addition, it includes the Group's strategic risk, which relates to the impact of risk on the business strategy and any resulting adjustment to the strategy. Furthermore, external factors such as the performance and volatility of the capital markets or a lack of investor confidence in the financial markets may impact financial performance. Further information concerning business risks can be found in the 2013 corporate report on pages 164 and 165.

Currently, the Group is pursuing several major projects. These are constantly monitored to identify risks at an early stage and enable appropriate countermeasures to be taken. Further information concerning project risks can be found in the 2013 corporate report on page 165.

The Group evaluates its risk situation on an ongoing basis. Taking into account the stress test calculations performed, the required economic capital and earnings at risk as well as the risk management system, which it considers to be effective, the Executive Board of Deutsche Börse AG is of the opinion that the risk-bearing capacity of the Group is sufficient. A significant change in the Group's risk profile cannot be identified at present.

Report on opportunities

Deutsche Börse Group's management of opportunities aims to identify and assess opportunities as early as possible and to initiate appropriate measures in order to take advantage of opportunities and transform them into business success. At present the Executive Board cannot identify any significant change in the Group's opportunities that were described in detail in the 2013 corporate report on pages 177 to 180. As part of its growth strategy, Deutsche Börse Group has already reached two milestones relating to the structural growth opportunities described in the corporate report.

Clearing of OTC derivatives: EMIR licence for Eurex Clearing

On 10 April, Eurex Clearing, Deutsche Börse Group's clearing house, received a clearing house licence in accordance with EMIR from the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin, the German Federal Financial Supervisory Authority). The granting of the licence confirms full compliance of Eurex Clearing's clearing services with the EMIR rules. This means that Eurex Clearing can already provide services to its participants to help them prepare for the impending clearing obligation for derivatives.

Expansion in Asia: closer German-Chinese cooperation

At the end of March, Deutsche Börse and Bank of China announced their strategic cooperation in Berlin in the presence of Chinese President Xi Jinping and German Chancellor Angela Merkel. The strategic partnership will see Bank of China become a trading and clearing member of Deutsche Börse Group and will give Chinese issuers and Asian investors direct access to the German and European capital markets. The extended cooperation is an important milestone in the further implementation of Deutsche Börse Group's corporate strategy, which has identified the Asia-Pacific region as one of its focal points. The agreement also calls on the two companies to develop the financial infrastructure needed to underpin further cooperation between China and Germany and to support the internationalisation of the renminbi by promoting Frankfurt/Main as the European offshore centre for the currency. In addition to the cooperation between Deutsche Börse and Bank of China, it was also announced that the financial centre of Frankfurt would in future be the only venue in the euro zone where trades in the Chinese currency, the renminbi, can be settled. A memorandum of understanding detailing the clearing of payments denominated in renminbi was signed by the Bundesbank and the PRC's central bank, the People's Bank of China.

Report on expected developments

The report on expected developments describes how Deutsche Börse Group is expected to perform in financial year 2014. It contains statements and information on events in the future. These forwardlooking statements and information are based on the company's expectations and assumptions at the time of publication of this report. In turn, these are subject to known and unknown opportunities, risks and uncertainties. Numerous factors influence the Group's success, its business strategy and financial results. Many of these factors are outside the company's control. Should opportunities, risks, or uncertainties materialise or one of the assumptions made turn out to be incorrect, the actual development of the Group 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.

Deutsche Börse Group is not planning any fundamental change to its operating policies in the coming years. At present, the Executive Board cannot identify any deviation from the forecast described in detail on pages 171 to 182 of the corporate report 2013.

Development of results of operations

For the remainder of financial year 2014, Deutsche Börse Group does not expect any material deviation from the forecasts for its operating environment made in its 2013 consolidated financial statements.

For the forecast period, the uncertainty about the future behaviour of capital market participants continues to make specific forecasts of the results of operations difficult. As part of its budget planning process, the company has therefore developed different possible scenarios for its results of operations in 2014 and has published them on pages 178 to 179 of the corporate report 2013.

However, as at the publication date of this Group interim management report, the company expects that special factors affecting operating costs will increase by €10 million to some €30 million, owing to the acquisition of Citco Global Securities Services announced in April 2014.

Development of the Group's financial position

The company expects cash flows from operating activities to remain clearly positive in the future; these are Deutsche Börse Group's main financing instrument. The company plans to invest amounts of around €150 million per year in intangible assets and property, plant and equipment during the forecast period on a consolidated basis. The investments will serve primarily to develop new products and services in the Eurex and Clearstream segments and enhance existing ones. The total mainly comprises investments in the trading infrastructure and risk management functionalities.

As a rule, the Group aims to achieve a dividend distribution ratio of 40 to 60 per cent of adjusted consolidated net income. Moreover, it implements share buy-backs in order to distribute to its shareholders funds not required for the Group's operating business and its further development. This policy is determined at all times by the company's capital requirements, which depend on the legal and supervisory framework as well as requirements relating to its credit rating, economic capital and liquidity.

Group management report 21

Consolidated income statement statement

for the period 1 January to for 31 March 2014

Börse Group interim report
report Q1/2014
2014
Consolidated
income
statement
statement
for the period 1 January to
for
31 March 2014
Note 31 Mar 2014
€m
Quarter ended
31 Mar
2013
€m
Sales revenue 589.8 541.2
Net interest income from banking business
Net
income
banking
8.4 8.2
Other operating income 4 3.2 5.2
Total revenue 601.4 554.6
Volume
Volume-related costs
related
–87.2 –70.3
Net revenue (total revenue less
revenue (total
volume-related costs)
volume
514.2 484.3
Staff costs –109.0 –165.9
Depreciation, amortisation and impairment losses
impairment
–30.1 –28.3
Other operating expenses
operating
5 –108.7 –101.1
Operating costs –247.8 –295.3
Result from equity investments
investments
63.5 3.0
Earnings before interest and tax (EBIT) 329.9 192.0
Financial income 3.2 1.1
Financial expense –14.1 –24.3
Earnings before tax (EBT) 319.0 168.8
Other tax –0.4 –0.3
Income tax expense
tax
–91.3 –43.6
Net profit for the
period
227.3 124.9
thereof shareholders of parent company (net income for the period)
thereof shareholders
219.0 121.2
thereof non-controlling interests
controlling
8.3 3.7
Earnings per share (basic) (€)
)
13 1.19 0.66
Earnings per share (diluted) (€) 13 1.19 0.66

Consolidated statement of comprehensive income comprehensive comprehensive

for the period 1 January to to 31 March March 2014

Financial statements 23
Consolidated statement
of
comprehensive
comprehensive
comprehensive
income
for the period 1 January to
to 31 March
March 2014
Note 31 Mar 2014
€m
Quarter ended
31 Mar 2013
€m
Net profit for the period reported in consolidated income statement
in consolidated
227.3 124.9
Items that will not be reclassified to profit or loss:
not be
to
to profit
Changes from defined benefit obligations 8 –9.0 11.8
Deferred taxes 2.5 –3.1
3.1
–6.5 8.7
Items that may be reclassified subsequently to profit or loss:
toprofit
to
loss:
1)
Exchange rate differences
Exchange rate
8 0.9 27.4
Remeasurement of cash flow hedges
cash
hedges
0.6 –0.4
0.4
Remeasurement of other financial instruments
financial
–1.2 0.8
Deferred taxes 8 0.1 –15.7
15.7
0.4 12.1
–6.1 20.8
Other comprehensive income after tax
Total comprehensive income
thereof shareholders of parent company
company
company
221.2
212.9
145.7
142.0

1) Exchange rate investments. differences include €0.3 million (31 March 31March 2013: €1.6 million) that were taken directly to accumulated profit as part of the re result from equity

Consolidated balance sheet balance report Q1/2014

as at 31 March 2014

Total assets

Assets NON Intangible assets Software Goodwill Payments on account and construction in progress Other intangible assets Property, plant and equipment Fixtures and fittings Computer hardware, operating and office equipment Payments on account and construction in progress Financial assets Investments in associates and joint ventures Other equity investments Receivables and securities from banking business Other financial instruments Other Financial instruments of the central counterparties Other non Deferred tax assets Total non CURRENT ASSETS Receivables and other current assets Financial instruments of the central counterparties Receivables and securities from banking business Trade receivables Receivables from related parties Income tax receivables Other current assets Available Restricted bank Other cash and bank balances Total current assets NON-CURRENT ASSETS assets Payments plant equipmentPayments andloans non-current assets Total non-current assets andother andfromtax Available-for-sale financial assets balances CURRENT and fittings currentassets currentassetscurrent1) sale balancesassets tax2014 Note 31 Mar 2014 6 6 7 31 Dec 2013 €m 174.3 2,084.0 103.2 923.0 3,284.5 35.9 63.4 0.1 99.4 75.4 152.3 1,271.9 23.9 0.4 1,523.9 6,633.1 11.7 53.1 11,605.7 195,756.3 15,641.5 415.2 0.9 20.4 283.3 0 212,117.6 19,580.8 792.0 232,490.4 of 31 €m 178.8 2,042.6 85.2 852.1 3,158.7 37.3 69.9 0.1 107.3 183.4 23.9 1,178.3 25.6 0.4 1,411.6 4,058.6 11.7 49.0 8,796.9 153,546.8 9,544.0 218.8 4.1 40.4 273.7 35.6 163,663.4 16,221.7 627.9 180,513.0 Mar 2013 €m 149.7 2,106.8 75.1 890.7 3,222.3 42.3 76.4 1.7 120.4 210.1 25.4 1,418.3 24.0 0.2 1,678.0 0 8.8 52.5 5,082.0 196,706.1 13,653.7 238.5 3.3 91.3 226.3 0.9 210,920.1 16,655.2 1,270.1 228,845.4

1) Thereof €8.8 million ( tax credits in accordance with section 37 (5) of the Körperschaftsteuergesetz (KStG, the German Corporation Tax Act). (31 December 2013 2013: €8.8 million and with31 March 2013: €10.6 : million) with a remaining maturity of more than one year from corporation

10

244,096.1

189,309.9

233,927.4

Financial statements 25
Equity and liabilities
liabilities
Note 31 Mar 2014 31 Dec 2013 31 Mar 2013
€m €m €m
EQUITY 8
Subscribed capital 193.0 193.0 193.0
Share premium 1,249.0 1,249.0 1,249.0
Treasury shares –446.6 –446.6 –449.8
449.8
Revaluation surplus 22.5 29.4 23.4
Accumulated profit 2,231.3 2,011.8 2,070.6
Shareholders' equity 3,249.2 3,036.6 3,086.2
Non-controlling interests
controlling
311.8 231.4 226.6
Total equity 3,561.0 3,268.0 3,312.8
NON-CURRENT LIABILITIES
CURRENT
Provisions for pensions and other
employee benefits
employee
9 92.9 80.2 88.0
Other non-current provisions
current
102.6 113.2 115.9
Deferred tax liabilities 289.9 243.4 297.1
Interest-bearing liabilities
bearing
1,522.7 1,521.9 1,545.3
Financial instruments of the central counterparties 6,633.1 4,058.6 0
Other non-current liabilities
current
3.4 2.6 5.7
Total non-current liabilities
current
8,644.6 6,019.9 2,052.0
CURRENT LIABILITIES
Tax provisions 230.7 266.8 220.5
Other current provisions 112.0 223.6 111.6
Financial instruments of the central
counterparties
195,746.3 153,046.8 196,206.1
Liabilities from banking business
banking
15,541.3 9,725.3 14,175.2
Other bank loans and overdrafts 1.3 0.1 0.2
Trade payables 257.5 123.7 86.5
Liabilities to related parties
related
1.5 1.9 16.9
Cash deposits by
market participants
participants
19,580.8 16,221.7 16,655.2
Other current liabilities 419.1 412.1 1,090.4
Total current liabilities 231,890.5 180,022.0 228,562.6
Total liabilities 240,535.1 186,041.9 230,614.6
Total equity and liabilities
liabilities
10 244,096.1 189,309.9 233,927.4

Equity and liabilities liabilities

Consolidated cash flow statement

for the period for 1 January to 31 March 2014

Börse Group interim report
report Q1/2014
2014
Consolidated cash flow statement
for the period
for
1 January to
31 March 2014
Quarter ended Twelve-months period as at
months
Note 31 Mar 2014
2014
31 Mar 2013 31 Mar 2014 31 Mar 2013
€m €m €m €m
Net profit for the period
Net
profit for
the
227.3 124.9 597.6 644.4
Depreciation, amortisation and impairment
impairment
losses
6 30.1 28.3 120.6 108.6
Increase/(decrease) in non
non-current provisions
current provisions
–6.9 39.7 –14.5 35.5
Deferred tax expense/(income) 8 26.0 5.8 22.3 –50.8
Cash flows from derivatives
from derivatives
0 –14.0 –2.5 –14.0
Other non
non-cash (income)/expense
cash
–41.4 –4.8 –22.9 17.1
Changes in working capital, net of non
non-cash
non
items:
–181.9 –33.6 4.7 –28.9
(Increase)/decrease in receivables and
and
other assets
Increase/(decrease) in current liabilities
liabilities
–100.0
–81.7
–28.1
–5.2
–58.1
66.2
–7.2
–10.4
Increase in non
crease
non-current liabilities
–0.2 –0.3 –3.4 –11.3
Net loss on disposal of non
Net
non-current assets
currentassets
0 0 –1.1 1.8
Cash flows from
operating activities
excluding CCP positions
CCP
positions
53.2 146.3 704.2 713.7
Changes from liabilities from CCP positions
positions
3.2 –30.7 58.7 122.5
Changes in receivables from CCP positions
positions
positions
0.3 –74.2 –19.3 –32.8
Cash flows from operating activities
operating
56.7 41.4 743.6 803.4
Payments to acquire intangible assets
assets
assets
–20.4 –18.9 –100.5 –105.0
Payments to acquire property, plant and
plant
equipment
–1.5 –3.5 –26.6 –41.8
Payments to acquire non
non-current financial
current
instruments
–133.7 –12.7 –135.8 –232.6
Payments to acquire investments in associates
associates
and joint ventures
–1.2 0 –36.3 –0.8
Payments to acquire subsidiaries, net of cash
net
acquired
58.4 0 63.6 –295.5
Proceeds from the disposal of shares in
in
associates and joint ventures
0 0 0 21.5
(Net
increase)/net decrease in current
decrease
receivables and securities from banking
receivables and
business with an original term greater than
with
term
three months
588.2 0 –104.0 379.0
Proceeds from disposals of available
available-for
for-sale
non
non-current financial instruments
current
81.9 2.3 114.9 394.4
Cash flows from investing activities
investing
571.7 –32.8 –224.7 119.2
Quarter ended
Twelve-months period as at
months period
Note
31 Mar 2014
31 Mar 2013
31 Mar 2014
31 Mar 2013
€m
€m
€m
€m
Purchase of treasury shares
treasury
0
–1.2
0
–199.4
199.4
Proceeds from sale of treasury shares
of
shares
0
0
1.9
1.2
Payments to non
to non-controlling interests
controllinginterests
0
0
–8.3
–14.6
14.6
Repayment of long
Repayment oflong-term financing
term
0
0
–797.8
–309.2
309.2
Proceeds from long
long-term financing
termfinancing
0
594.5
0
1,194.5
Repayment of
Repayment of short-term financing
term
–100.0
0
–1,280.0
–792.5
792.5
Proceeds from short
short-term financing
term
89.9
0
1,369.7
789.3
Dividends paid
Dividends
0
0
–386.5
–622.9
622.9
Cash flows from financing activities
activities
–10.1
593.3
–1,101.0
46.4
Net change in cash and cash
cash and
equivalents
equivalents
618.3
601.9
–582.1
969.0
Effect of exchange rate differences
of
differences
0.4
1.8
–3.1
1.9
Cash and cash equivalents as at beginning
beginning
of period
–56.2
544.0
1,147.7
176.8
Cash and cash equivalents as at end
at end
of period
12
562.5
1,147.7
562.5
1,147.7
Interest income and other similar income
similar income
income
3.3
0.6
8.3
6.8
Dividends received
17.2
0.6
29.5
12.4
Interest paid
–7.6
–3.0
–93.9
–117.3
117.3
Financial statements 27
Income tax paid
–84.8
–49.8
–128.3
–204.9
204.9

Consolidated statement of changes in equity

for the period 1 January to for 31 March 2014

Börse Group interim report
report Q1/2014
2014
Consolidated statement of
of
changes in equity
changes
for the period 1 January to
for
31 March 2014
thereof included
thereof included in total
comprehensive
comprehensive income
Note 31 Mar
2014
Quarter ended
31 Mar 2013
31 Mar 2014 Quarter ended
31 Mar 2013
€m €m €m €m
Subscribed capital
Balance as at 1 January 193.0 193.0
Balance as at 31 March 193.0 193.0
Share premium
Balance as at 1 January 1,249.0 1,249.0
Balance as at 31 March 1,249.0 1,249.0
Treasury shares
Balance as at 1 January –446.6 –448.6
Purchase of treasury shares
of treasury
0 –1.2
Balance as at 31 March –446.6 –449.8
Revaluation surplus
Revaluation
8
Balance
as at 1 January
29.4 14.3
Changes from defined benefit obligations
benefit
obligations
–9.0 11.8 –9.0 11.8
Remeasurement of other financial instruments
instruments
–1.2 0.8 –1.2 0.8
Remeasurement of cash flow hedges 0.6 –0.4 0.6 –0.4
Deferred taxes 2.7 –3.1 2.7 –3.1
Balance as at 31 March 22.5 23.4
Accumulated profit
Accumulated
Balance as at 1 January
8 2,011.8 1,938.9
Net income for the period
Net
219.0 121.2 219.0 121.2
Exchange rate differences and other
adjustments 0.6 26.2 0.9 27.4
Deferred
taxes
–0.1 –15.7 –0.1 –15.7
Balance as at 31 March 2,231.3 2,070.6
Shareholders' equity as at 31 March
equity
as
3,249.2 3,086.2 212.9 142.0
thereof included in total
comprehensive income
in
Note 31 Mar 2014
€m
Quarter ended
31 Mar 2013
€m
31 Mar 2014
€m
Quarter ended
31 Mar 2013
€m
Shareholders' equity (brought forward) 3,249.2 3,086.2 212.9 142.0
Non-controlling interests
controlling
Balance as at 1 January 231.4 223.0
Changes due to capital
due
increases/(decreases)
8 72.1 0 0 0
Changes due to share in net income of
due
subsidiaries for the period
8 8.3 3.7 8.3 3.7
Exchange rate differences and other
Exchange rate
other
adjustments
0 –0.1 0 0
Total non-controlling interests
controlling
as at 31 March
311.8 226.6 8.3 3.7
Total as at 31 March
as at
3,561.0 3,312.8 221.2 145.7

Notes to the interim financial statements financial report Q1/2014

Basis of preparation

1. 1. Accounting policies Accounting

The ing Stan Board ( European Parliament and of the Council on the application of Inter As at pean Union that could affect the interim financial statements. Accordingly, the interim financial statements also comply with the IFRSs as consolidated financial statements for the year ended 31 December 2013 were also applied to the inte im financial statements. interim financial statements have been prepared in compliance with the International Financial Repor Standards (IFRSs) and the related interpretations issued by the International Accounting Stan (IASB), as adopted by the European Union in accordance with European Parliament of the 31 March Union statements. the financial comply the also addition and (December International dards the Accounting IASB),the on the Inter March2014, there were no effective standards or interpretations customer EurexAG" "Finastatementssupplementedsubject a 2014 financial dards Accounting 2014,issued by the IASB. The accounting policies applied by the company to the cent. Regulation No. 1606/2002 of the International Accounting Standards. not yet adopted by the Eur expense 1606/2002 national adopted the counterparties" includes Report-Standards Eurointer-

In addition to the standards and interpretations applie is applied for the first time: ties" (December 2011). 31thefinancial ties" of Amendments to IAS applied as at 31 32 – "Offsetting of Financial Assets and Financial Liabil standard Liabili-

The IASB has issued no other standards by the date of publication of this yet been adopted by the EU and which are relevant to Deutsche Börse AG. otheradopted EU the to AG. interim report, which have not

In addition, IAS reporting period was calculated using a forecast rates used when calculating the Group tax rate ranged between 17 and 43 per cent. Deferred tax assets were recognised for tax loss carryforwards at the end of the interim reporting period where thes expected to be realised within the next five tax periods. using the percarryforwards the thesexpected 34 ("Interim Financial Reporting") was applied. used rangedrecognised carryforwards thethes be within wasthe"Financial "Financial instruments of the central counterparties". effective Group tax rate of 26 per cent. The nominal tax ncialinstrumentsby d December 2013, the following stan The income tax expense for the interim these can be

Due to the consolidation of European Energy Exchange AG and its European Commodity Clearing AG subsidiary effective 1 outstanding transactions that are being cleared through European Commodity Clearing AG, in addition to the outstanding customer positions of Eurex Clearing AG. Accordingly, the item "Financial instruments of Eurex Clearing AG" was renamed "Fina itsthatcustomer AG. item "Fina AG January 2014, the item "Financial instruments of central counterpartie s"Nei-

In accordance with the provisions of the Wertpapierhandelsgesetz (WpHG, German Securities Trading Act), these interim financial statements are supplemented by a Group interim management report. ther of interim report is subject to a statutory audit. subjectaudit.

2. Group structure Group

3. Seasonal influences and valuations Seasonal valuations

Consolidated incom income statement disclosures edisclosures

4. Other operating income Consolidated Other

Total 3.2 5.2
Miscellaneous 2.9 4.9
Income from agency agreements 0 0.2
Rental income from sublease contracts
from
0.3 0.1
Composition of other operating income
operating
31 Mar 2014
€m
Quarter ended
31 Mar 2013
€m
4. Other operating income
Other
Other
Consolidated incom
Consolidated
income
e
statement
disclosures
disclosures
The Group's revenues are influenced more by the volatility and the transaction volume on the capi
The
influenced
by
the
markets than by seasonal factors. Owing to a concentration of costs for projects only coming to co
than
pletion in the fourth quarter, costs in the fourth quarter tend to be higher than in the first three quarters
the fourth
in
fourth quarter
to
of the business year.
year.
only coming
the
the
capital
com
three
3. Seasonal influences and valuations
Seasonal
valuations
On 10 February
2014, Deutsche Börse AG acquired a 15 per cent interest, in Bondcube Limited, regi
2014,
AG
tered in England and Wales, United Kingdom. Deutsche Börse AG is currently only able to exercise co
tered
and
Wales,
is
currently
trol over Bondcube Limited jointly with the company's founders, so the c
Limitedjointly
founders,
ompany
a joint venture and is accounted for using the equity method in accordance with IFRS
venture
in
Bondcube
company has been classified as
IFRS
11.
regis
s
to exercise
con
n
Following completion of the merger agreement b
agreement
between Direct Edge Holdings, LLC and BATS Global
etween
Markets, Inc. on 31
January 2014, former Direct Edge Holdings, LLC has no longer been accounted as
Holdings,
an assocciate. There is no significant influence on its successor BATS Global Markets, Inc.
an
There
There
on
successor
and
been
as
Effective 10 January 2014, Deutsche Börse AG acqu
January
Börse
acquired a 100 per cent interest in Impendium Systems
ired
per
Ltd., domiciled in London, United Kingdom, for a purchase price of £3.2
in
of £3.2
dependent purchase price component of a fair value amounting to £5.2
AG is the only shareholder, there is a presumption of control. The subsidiary has been included in full in
there
presumption
subsidiary
the consolidated financial statements since the first quarter of 2014.
consolidated
statements
in
million plus a revenue
million. Since Deutsche Börse
has
Systems
revenue
Since the Chairman of the supervisory board of European Energy Exchange AG (EEX), who is appointed
of
Exchange
by Eurex Zürich AG, has a casting vote on the EEX supervisory board as
has
vote
on
from 1
Zürich AG has exercised control over EEX since that date. Consequently, EEX has been fully consolidated
date.
Consequently,
in Deutsche Börse AG's consolidated financial statements since that date.
consolidated
statements
date.
January 2014, Eurex
fully
2014,
2. Group
Group
structure
structure

Miscellaneous other operating income includes income from cooperation agreements and from training and valuation adjustments.

5. Other operating expenses

Composition of other operating expenses

Börse Group interim report
report Q1/2014
2014
5. Other operating expenses
Composition of other operating expenses
Quarter ended
31 Mar 2014
€m
31 Mar 2013
€m
Costs for IT services providers and other consulting services 35.1 35.3
IT costs 21.3 20.9
Premises expenses 16.9 19.1
Non
Non-recoverable input tax
recoverableinput
14.5 8.7
Travel, entertainment and corporate hospitality expenses
corporate hospitality expenses
4.7 4.1
Insurance premiums, contributions and fees 4.1 2.9
Advertising and marketing costs 3.9 3.4
Non
Non-wage labour costs and voluntary social benefits
wage
and
2.1 1.8
Supervisory Board remuneration
Supervisory
Board
1.2 0.9
Cost of agency agreements 1.1 2.1
Miscellaneous 3.8 1.9
Total 108.7 101.1
Consolidated balance sheet disclosures
6. Intangible assets
and property, plant and
property,
plant
equipment
equipment
As at
31 March
March 2014, intangible assets amounted to
€3,284.5 million
€3,158.7
million
million).
million (31 December
31 December 2013:
:
This item primarily consists of goodw
goodwill in the amount of €2,084.0
ill
ill
amount

€2,042.6
million), licences, trade names and customer relationships (p
and
relationships (p
in the amount of €923.0
the
million (
million (31 December
31
2013
2013: €852.1 million), internally developed soft
in the amount of €151.7
the
million (
million (31 December
31
2013
2013: €157.7 million) as well as payments on account
and construction in pro
construction
progress of €103.2
gress of 103.2 million (31 December
(31
2013
million (31 December
31 December 2013
(position "Other intangible assets"
osition
2013: €85.2 million).
2013:
software
The increase of
€41.4 million
in goodwill is mainly attributable to the
goodwill
Energy Exchange AG (€37.8
(37.8
million).
initial consolidation of European
The increase of €
70.9 million in other intangible assets is primarily due to the recognition of hidden
intangible
is primarily due
reserves of €74.8
million in the course of the initial consolidation of European
the
ofthe
consolidation
This was offset by amortisation charges amounting to €4.3
million in total.
European
Energy Exchange AG.
Exchange
of
The €6.0
million decline in internally developed software was primarily due to amortisation in the
million
internally
developed software
amount of €10.5 mil
million. This was partially compensated by
lion.
and additions to the basis of consolidation in the amount of €1.9
consolidation
in
of 1.9
million.
due
currency translation effects of €2.2
effects of
million

Consolidated balance sheet disclosures

6. Intangible assets and property, plant and equipment property, plant equipment

Property, plant and equipment totalled €107.3 million €10.7 million. million). The decrease of €7.9 ). The of sets €1,523.9 7.9 million is primarily related to depreciation amounting to as at 31 March 31March 2014 ( (31 December 31 2013:

7. Financial assets Financial

Financial as €1,411.6 business. assets amounted to million). €93.6 million of this increase relates to receivables and securities from banking 1,523.9 million as at receivables,€31 March 2014 (31 December 31 2013 2013:

8. Equity Equity

In the first quarter of 2013: €3,268.0 €219.0 million and non solidation of European Energy Exchange AG. 2014 million). This was largely attributable 2014, equity increased by €293.0 wasnon-controlling interests of €72.1 of Exchange Thiscontrolling €72.1 , million to €3,561.0 to the consolidated net income for the period of million arising in connection with the initial co to consolidated theof million (31 December con-

The decline of €6.9 obligations. European The 6.9 million in the revaluation surplus is in mainly due to the change in defined benefit

Exchange rate differences and deferred taxes thereon in the total amount of €0.8 slight impact on the change in equity. and taxes inchangeinThe million in non million only had a million

The increase of €8.3 ment for dividend distributions contributed to the rise in equity. dividend non-controlling interests surplus controlling 31 2014 on the basis of realised profits and after adjus initial , discount rate other adjustt-

9. Pension provisions Pension

Pension provisions are measured using the projected unit credit method in accordance with IAS the basis of ac employee benefits was 3.2 per cent in Germany 31 March end 2013, at 2.0 per cent ( projectedactuarial reports. As at in 2013: 3.7 per cent); in ,at thearetuarial31 March : Switzerland the discount rate used was unchanged as against year (31 March basis €99.4 million and Luxembourg (31 December Switzerland as 31March 2013: 2.25 per cent). 2014, the discount rate for pension plans and other :cent). 2013: 3.4 per cent; 19 on : per year-

10. Total assets assets

The increase in consolidated total assets by €54.8 (31 December central counterparties, receivables and liablities from banking business as well as cash deposits by ma ket participants. The level of these items can vary widely on a daily basis according to customers' needs and actions. total 31 2013: €189.3 central receivablesbanking cash deposits The vary and actions. : billion) depends to a significant extent on the finan liablities dependsto significantonthefinan billion to €244.1 € billion as at 31 March financial instruments of the March 2014 cial marr-

11. 11. Fair value hierarchy air

Börse Group interim report
report Q1/2014
2014
11.
11. Fair value
air
hierarchy
Financial assets and liabilities that are measured at fair value are allocated to the following three
assets
liabilities
that
are
hierarchy levels: financial assets and liabilities are allocated to level 1 if there is a quoted price for ide
financial
assets
tical assets and liabi
assets
liabilities in an active market. They are allocated to level 2 if the inputs on which fair
litiesin
market.
value measurement is based are observable either directly (as prices) or indirectly (derived from prices).
Financial assets and liabilities are allocated to level 3 if t
unobservable inputs.
fair
allocated
are
directly
3
he
value
allocated
if
2
prices)
or
is
is
quoted
inputson
the fair value is determined on the basis of
on
three
iden
ide
fair
As at
31 March
March 2014, financial assets and liabilities measured at fair value were allocated to the
,
assets
hierarchy levels 1 to 3 as follows:
levels
3
as
Fair value hierarchy Fair value as at
31 Mar 2014
2014
thereof attributable to:
attributable
€m Level 1
€m
Level 2
€m
Level 3
€m
Recurrently carried at fair value
ASSETS
Financial assets held for trading
Derivatives
Non-current financial instruments of the central
current
instruments
counterparties
6,633.1 6,633.1 0 0
Current financial instruments of the central counterparties
the
195,756.3 195,756.3 0 0
Total 202,389.4 202,389.4 0 0
Available
Available-for-sale financial assets
sale
Equity instruments
Other equity investments
Other
4.6 0 4.6 0
Total 4.6 0 4.6 0
Debt instruments
Other financial instruments 23.1 23.1 0 0
Non-current receivables and securities from banking business 1,271.9 1,271.9 0 0
Current receivables and securities from banking business
receivables
and
403.3 403.3 0 0
Total 1,698.3 1,698.3 0 0
Total assets 204,092.3 204,087.7 4.6 0
LIABILITIES
Financial liabilities held for trading
Derivatives
Non-current financial instruments of the central
current
instruments
counterparties
6,633.1 6,633.1 0 0
Current financial instruments of the central counterparties
the
195,746.3 195,746.3 0 0
Liabilities from banking
banking business
6.1 0 6.1 0
Other current liabilities
Other
6.1 0 0 6.1
Total liabilities 202,391.6 202,379.4 6.1 6.1

Fair value hierarchy

Fair value hierarchy

31 Mar 2013 thereof attributable to:
€m Level 1
€m
Level 2
€m
Level 3
€m
196,706.1 196,706.1 0 0
23.6 0 23.6 0
196,729.7 196,706.1 23.6 0
5.8 0.5 5.3 0
0
0
0
0
0
0
0
3.0 0 0 3.0
0.5 0 0.1 0.4
196,209.6 196,206.1 0.1 3.4
5.8
24.0
1,418.3
100.9
1,543.2
198,278.7
196,206.1
0.5
24.0
1,418.3
100.9
1,543.2
198,249.8
196,206.1
5.3
0
0
0
0
28.9
0
  • n The derivatives l forward foreign exchange transactions is determined on the basis of the forward foreign exchange rates for the remaining period to maturity as at the balance sheet date. Thelisted in level 2 comprise forward foreign exchange transactions. The fair value of the forward foreign the forbalance isted The ,The financial instruments are regularly mea date.
  • n The equity investments allocated to level 2 are measured on the basis of current, comparable market transactions. ofthe thebasis As
  • n As at the start of the year, derivative financial instruments belonging to an incentive programme amounting to € ured at fair value through profit and loss using an internal model as at the quarterly balance sheet dates. The results from the subsequent measurement are recognised under "oth The2measuredmarket transactions.Asamounting–6.1 million were allocated to Level 3. were "other operating expenses". meas-

As at the balance sheet date 31 March 2014, there were no effects recognised in profit or loss. The model takes into account the criteria underlying the conditional repayment of the grant made by Eurex Clearing AG. The criteria inc tomers in a specific market segment as well as expected trading volumes. They are continuously mon tored, while taking possible adjustments into account; for this, information of cu Since there is an internal model, the parameters can be different as at the settlement date; however, the derivative financial instrument will not exceed an amount of € the beneficiaries of the incen is not taken into consideration. datewererecognised or segmentas volumes.taking cuthere the bedate; will not€ loans, assets"andwell banking 2014 at 2014, effects orthecriteria include, in particular, non tomers this, at settlement anamount incentive programme fulfill the conditions and a repayment of the contribution market lude,particular, non-financial indicators as the expected number of cu rtisedfinancial of ssets" –8.0 million; this amount arises if customers is also used. arisesbearing cusmonistomers1,590.0 million

The fair value of other financial assets and liabilities not measured at fair value is determined as follows: into by Deutsche Börse Group have a fair value of €1,590.0

The euro and US dollar bonds issued ( is cal relating to the private placements on the basis of market parameters. (31 December calculated on the basis of the quoted values of the bonds or as the present value of the cash flows taken fair valueissued 31 2013: €1,551.8 culatedon the ontheparameters. million) and are reported under interest tive theofDeutscheof and assets" item; these are carried at cost less any i interest-bearing liabilities. The fair value

The carrying amounts of the following items represent a reasonable approximation of their fair value: privateoftheof

  • n Unlisted equity instruments whose fair value generally cannot be reliably determined on a continuous basis and which are reported under the "financial a pairment losses value: a theequityacurrentextent amortised cost im-
  • n Other loans, which are reported under "financial assets"
  • n Other receivables and other assets as well as current receivables from banking business, to the extent that these are measured at amo
  • n Restricted bank balances
  • n Cash and other bank balances
  • n Cash deposits by market participants
  • n Other current liabilities

Other disclosures

12. Reconciliation to cash and cash equivalents cash

Notes 37
Other disclosures
12.
Reconciliation to
cash and cash
cash
equivalents
Reconciliation to cash and cash equivalents
equivalents
31 Mar 2014 1 Jan 2014
€m €m
Restricted bank balances 19,580.8 16,221.7
Other cash and bank balances 792.0 627.9
less bank loans and overdrafts
less
–1.3 –0.1
0.1
Financial instruments of the central counterparties (netted) 10.0 500.0
20,381.5 17,349.5
Reconciliation to cash and cash equivalents
Current receivables and securities from banking business
receivables
and
15,641.5 9,544.0
less loans to banks and customers with an original maturity of more than 3 months
less
loans
customers
original
0 –692.1
692.1
less available-for
for-sale debt instruments
Current liabilities from banking business
from
–338.4
–15,541.3
–310.6
310.6
–9,725.3
9,725.3
Current liabilities from cash deposits by market participants
from
–19,580.8 –16,221.7
16,221.7
–19,819.0 –17,405.7
17,405.7
Cash and cash equivalents 562.5 –56.2
56.2
13. Earnings per share
share
Under IAS
33, earnings per share are calculated by dividing the net profit for the period attributable
the
profit
the period
to shareholders of the parent company (net income for the period) by the weighted average number
of
the
of shares outstanding.
Diluted earnings per share are determined by adding the number of potentially dilutive ordinary shares
number
ordinary
that may be acquired under the Stock Bonus Plan (SBP) to the average number of shares. In order to
under
Plan
number order
calculate the number of potentially dilutive ordinary shares,
of potentially dilutive
shares,
value of the services still to be provided
the
services
provided.
provided
the exercise prices were adjusted by the fair by
When determining diluted earnings per share, all SBP tranches for which cash settlement has not been
tranches
settlement not
resolved are assumed to be equity
resolved
equity-settled
settled – regardless of
tual
tual
the actual accounting in accordance with
accordance

13. Earnings per share share

When determining diluted earnings per share, all SBP tranches for which cash settlement has not been resolved are assumed to be equity IFRS 2. settled – regardless of the actual accounting in accordance with

Calculation of the number of potentially dilutive ordinary shares

Tranche Exercise price
Adjustment of
the exercise
price according
Average
number of
outstanding
options
31 Mar 2014
Average
Average price
2)
for the period
Number of
potentially
dilutive
ordinary shares
31 Mar 2014
3)
2013
0 36.28 66,923 58.42 25,362
3)
2014
0 47.17 52,442 58.42 10,099

Calculation of earnings per share (basic and diluted)

There were the following potentially dilutive rights to purchase shares as at
purchase shares
31 March
March 2014:
Calculation of the number of potentially dilutive ordinary shares ordinary
Tranche Exercise price
Adjustment of
the exercise
the exercise
price according
to IAS 331)
Average
number of
outstanding
options
31 Mar 2014
Average
Average price
2)
for the period
Number of
potentially
dilutive
ordinary shares
31 Mar 2014
3)
2013
0 36.28 66,923 58.42 25,362
3)
2014
0 47.17 52,442 58.42 10,099
of
services
supplied
weighted
weighted
of
This
under
number indicated for the balance sheet date may change subsequently.
number
the
volume
weighted
of any goods or services to be supplied to the entity in the future under the share option or other
future
Volume-weighted average price of Deutsche Börse AG shares on Xetra for the period 1 January to
AG
This relates to rights to shares under the Share Bonus Plan for senior executives. As the grant date for the 2014 tranche is
change
volume-weighted average share price was higher than the adjusted exercise prices for the 2013
was
are
share
1
to
grant date
thanthe
dilutive
share
-based payment arrangement.
based
31 March
31
2014
the
tranche
33 as at 31 Mar
is
not until
not until financial year 2015, the
March 2014
2013
2014.
2)
3)
As the
and 2014 tranches, these options are considered dilutive under IAS
Calculation of earnings per share (basic and diluted)
31 Mar 2014
outstanding period 184,115,657
shares outstanding as at end of period
outstanding
184,115,657
Number of shares outstanding as at beginning of period
Number of
Weighted average number of
Quarter ended
31 Mar 2013
184,078,674
184,051,513
shares outstanding
outstanding
184,115,657 184,051,815
shares
to
dilut
diluted earnings
35,461
184,151,118 32,2081)
184,084,023
Number of potentially dilutive ordinary shares
Weighted average number of shares used to compute dilut
per share
per
Net income for the period (€m)
Net

Earnings per share (basic) (€)
)
219.0
1.19
121.2
0.66

Composition of sales revenue by segment

Notes 39
14. Segment reporting
Composition of sales revenue by segment
31 Mar 2014
€m
Quarter ended
31 Mar 2013
€m
External sales revenue
Eurex 244.5 222.2
Xetra 50.3 40.4
Clearstream 200.8 186.3
Market Data + Services 94.2 92.3
Total external sales revenue
sales
589.8 541.2
Internal sales revenue
sales
Clearstream 1.9 1.3
Market Data + Services 7.8 7.0
Total internal sales revenue 9.7 8.3
Net interest income from banking
business
business
31 Mar 2014
€m
Quarter ended
31 Mar 2013
€m
Gross interest income 10.9 11.5
Interest expense –2.5 –3.3
3.3

Net interest income from banking business

31 Mar 2014
€m
Quarter ended
31 Mar 2013
€m
Gross interest income 10.9 11.5
Interest expense –2.5 –3.3
Total 8.4 8.2

Net revenue

31 Mar 2014
€m
Quarter ended
31 Mar 2013
€m
Eurex 207.2 197.5
Xetra 43.5 36.6
Clearstream 169.9 158.7
Market Data + Services 93.6 91.5
Total 514.2 484.3

Operating costs

31 Mar 2014
€m
Quarter ended
31 Mar 2013
€m
Eurex 102.2 104.5
Xetra 16.3 27.7
Clearstream 85.3 109.1
Market Data + Services 44.0 54.0
Total 247.8 295.3

Earnings before interest and tax (EBIT) interest(EBIT)

Börse Group interim report
report Q1/2014
2014
Earnings before interest and tax (EBIT)
interest
(EBIT)
Quarter ended
31 Mar 2014 31 Mar 2013
€m €m
Eurex 168.2 94.6
Xetra 27.5 10.4
Clearstream 84.5 49.5
Market Data + Services
Market
Services
49.7 37.5
Total 329.9 192.0
Investment in intangible assets and property, plant and equipment
Investment
intangible
equipment
31 Mar 2014 Quarter ended
31 Mar 2013
€m €m
Eurex 11.5 9.9
Xetra 0.2 0.5
Clearstream 9.8 11.4
Market Data + Services
Market
Services
0.4 0.6
Total 21.9 22.4
15. Financial
liabilities and other risks
and
risks
Interest
Interest-bearing liabilities
bearing
The following payment obligations arose from the interest
from
interest-bearing liabilities as at
bearing
31 March 2014 2014:
Payment obligations from interest
interest-bearing liabilities
bearing
Expected payment
obligation1)
31 Mar 2014
€m
Up to 1 year 40.2
1 to 5 years
years
1,001.8
More than 5 years
5 years
708.4
Total 1,750.4
1)
The expected payments in US dollars were translated into euros at the applicable forward rate.
dollars
into
the

Investment in intangible assets and property, plant and equipment Investment intangible equipment

Quarter ended
31 Mar 2014
€m
31 Mar 2013
€m
Eurex 168.2 94.6
Xetra 27.5 10.4
Clearstream 84.5 49.5
Market Data + Services
Market
Services
49.7 37.5
Total 329.9 192.0
Investment in intangible assets and property, plant and equipment
Investment
intangible
equipment
31 Mar 2014 Quarter ended
31 Mar 2013
€m €m
Eurex 11.5 9.9
Xetra 0.2 0.5
Clearstream 9.8 11.4
Market Data + Services
Market
Services
0.4 0.6
Total 21.9 22.4
15. Financial
liabilities and other risks
and
risks
Interest
Interest-bearing liabilities
bearing
The following payment obligations arose from the interest
from
bearing
31 March 2014 2014:

15. Financial liabilities and other risks and risks

Interest Interest-bearing liabilities bearing

Payment obligations from interest interest-bearing liabilities

The following payment obligations arose from the interest
from
interest-bearing liabilities as at
31 March 2014
2014:
Payment obligations from interest
interest-bearing liabilities
bearing
Expected payment
obligation1)
31 Mar 2014
€m
Up to 1 year 40.2
1 to 5 years
years
1,001.8
More than 5 years
5 years
708.4
Total 1,750.4
1)
The expected payments in US dollars were translated into euros at the applicable forward rate.
dollars
into

1) The expected payments in US dollars were translated into euros at the applicable forward rate.

Other risks risks

CBOE vs. ISE

On 12 November 2012, the Chicago Board Options Exchange (CBOE) filed a patent infringement law suit against the International Securities Exchange (ISE) (the "CBOE Litigation"). In the CBOE Litigation, CBOE alleges US\$525 methods for limiting market is unsupported by the facts and the law. ISE intends to vigorously defend itself in this lawsuit. Upon ISE's motion, the case was recently transferred to the competent courts of New York City. patent million in damages for infringement facts and itself smotion, to Litigation"). market-maker risk. ISE believes that CBOE's damages claim lacks merit because it ISE this million for makerthatlacks because it

In November 2006, ISE itself filed a patent infringement lawsuit against CBOE (the "ISE Litigation"). In the ISE Litigation, ISE's patent which relates to systems and methods for operating an automated exchange. The ISE Litig tion was scheduled for trial in March 2013. However, in the course of the pre decisions of the trial judge establishing ISE's burden of proof to succeed in trial, were extremely adverse to ISE. As a result, ISE believed that it could not prove its case of infringement, and therefore determined to move straight to an appeal of those ruli of the rulings with the affirmed in part and reversed in have a viable case left in the matter expects a decision on the petition for rehearing in Q2/2014. lawsuit (the as of December 2012, sions of establishing of believeditsandto thosewith U.S. iser vs. 2012, Exchange infringement law 2006, itself2012, operating an was trialHowever,prooftrial,wereCourt of Appeals in part the rulings of the trial court, bu matter. rehearing of 2012, ISE allege rulings and forego a trial. On 12 April of for the Federal Circuit ( the court, On 17 April, ISE filed with the CFAC a petition for rehearing A.,thedismissed. of three patents, which relate to systems and alleged US\$475 million in damages for infringement of ngs a filedQ2/2014. systemsmillion 2013 ("CFAC"). but the net result is that ISE does not ressto dofofover, related pre-trial motions, some of the 2013, ISE filed an appeal On 7 April 2014, the CFAC tLitigatrial the ,rehearing. ISE a-

Peterson vs. Clearstream Banking S.A., Citibank NA et al. and Heiser vs. Clearstream Banking S.A. In its corporate report 2012, Deutsche Börse Group plaintiffs seeking turnover of certain customer positions held in Clearstream Banking S.A.'s (Clearstream) securities omnibus account with its US depository bank, Citibank NA, and asserting direct claims against Clearstream for damages of US\$250 these positions. vs.Börse seeking (Clearstream) nst positions. Clearstreamits of Banking with bank,and Bank add million for purported wrongful conveyance of some of informed about proceedings initiated by various

In July 2013, the US court ordered turnover to plaintiffs, holding that the customer positions were owned by Bank Markazi. The decision did not add Markazi and Clearstream appealed the turnover order. to not and address the direct claims against Clearstream. Bank

The responsible bodies of Deutsche Börse AG and Clearstream approved the terms of a settlement agreement with the plaintiffs in this case on 9 September the direct claims against Clearstream were to be dismissed and ratifying plaintiffs agreed not to sue Clearstream for damages arising from specified acts that occurred prior to the effective date of the agreement. The Clearstreamapproved 9 to for . theof AGincaseon anddamages Novembercourtsettlement 2013. Pursuant to the settlement agreement,

In return, Clearstream agreed to withdraw its appeal from the turnover order. On 8 November 2013, the US trial court dismissed the direct claims against Clearstream and the settlement became effective. On 13 November 2013, the US appellate court accepte district court's turnover order in light of the settlement with plaintiffs. Bank Markazi's appeal continues without Clearstream's involvement. withdraworder. directappellate without 2013, inlight accepted the withdrawal of Clearstream's appeal of the

If this turnover is ultimately affirmed by the US appeals court Heiser vs. Clearstream Banking S. ultimatelyby thisS.A., also seeking turnover of the same assets, will be dismissed. and the assets turned over, a related case, On 30 December 2013 US plaintiffs filed under seal a complaint targetingcertain assets of approximat ly US\$ 1.6 Luxembourg. The plaintiffs are judgement creditors of Iran and seek the turnover of these customer a sets to satisfy their judgement. 2013 US complaint assets US\$ billion claimed to be held for Bank Markazi, the Iranian Central Bank, by Clearstream in 30 plaintiffscomplaintapproximatthe turnover tosatisfy for in approximateas-

Criminal investigations against Clearstream Banking S.A.

On the night of 2 counsel that the United States Attorney for the Southern District of New York had launched preliminary investigations against Clears regulations. The investigations, in which Clearstream is cooperating with the US attorney, are currently at a very early stage. ofStates against which with the2 April 2014, Clearstream Banking S.A. (Clearstream) was informed by its US legal of cooperatingat Clearstream due to alleged violations of US anti anti-money laundering and sanctions

Eurex Clearing AG vs. Lehman Brothers Bankhaus AG Brothers

On 26 November 2012, the insolvency administrator of Lehman Brothers Bankhaus AG, Dr Michael C. Frege, brought an action against Eurex Clearing AG before the Frankfurt/Main Regional Court. On the basis of German insolvency law, Dr Frege demanded from Eur €113.5 points above the base rate accrued on the total amount since 13 November 2008. Eurex Clearing AG considered the claim unfounde 14 ing that they would each waive all claims arising from their previous legal relation insolvency administrator withdrew the claim brought before the Frankfurt/Main Regional Court. the Regionalinsolvency demanded million and payment of another amount of around €1.0 14 March 2014, the insolvency administrator and Eurex Clearing signed an irrevocable settlement sta they addition 26administratorofBrothersAG, Frege,theRegional basisGerman from €points base total theinsolvency administrator sta wouldclaimsarisingtheir claim another unfounded and defended itself against the insolvency administrator's action. and signedproceedings that arise in the ordinary course of its business. Deutsche million plus interest of 5 percentage exsettle the obligation is pro On stat-

In addition to the matters described above and in prior disclosures, Deutsche Börse Group is from time to time involved in various legal p Börse Group recognises provisions for litigation and regulatory matters when it has a present obligation from an event in the past, an outflow of resources with economic benefit to sett able and it is possible to reliably estimate the amount. In such cases, there may be an exposure to loss in excess of the amounts accrued. When these conditions are not met, Deutsche Börse Group does not recognise a provision. As a an ongoing basis whether the requirements to recognise a provision are met. Deutsche Börse Group may not be able to predict what the eventual loss or range of loss related to such Börse Group does not believe, based on currently available information, that the results of any of these various proceedings will have a material adverse effect on its financial statements as a whole. to matterswhen a resources to Börse basis Deutsche mayto believe,statements above and legal and a an in amount. excessamounts theseato be theloss information, theseon financial A recognised. esponding met.2014 litigation or regulatory matter develops, Deutsche Börse Group evaluates on provisions treamd roceedingsEurex Clearing AG the repayment of matters will be. Deutsche dstep, money relationship. As a result, the lethe be.– are reco ship.prob-

Tax risks

Due to its cess has been developed to recognise and evaluate these risks, which nised depending on the probability they will arise. In a secon basis of their expected value. In case it is more probable than not that the risks will arise, a tax provision is recognised. Deutsche Börse Group continuously reviews if the preconditions for the recognition of corr business activities in various countries, Deutsche Börse Group is exposed to tax risks. A pr cess seconcase risksBörse corresponding tax provisions are met. beenrisks, dependingontheof In it second step, these risks are measured on the – in the first place prorecog-

16. Material transactions with related parties

Material transactions with associates

Notes 43
16. Material transactions with related parties
The following table shows the other material transactions with companies classified as related
The
following
shows
parties. All transactions were effected on an arm's length basis.
parties.
transactions
an
arm's
Material transactions with associates
Amount of the transactions Outstanding balances
31 Mar 2014
€m
Quarter ended
31 Mar 2013
€m
31 Mar 2014
€m
31 Mar 2013
€m
Loans from Börse Frankfurt Zertifikate Holding S.A. (until 12 Dec
Frankfurt
Zertifikate
Dec
2013: Scoach Holding S.A.)
S.A.) to Deutsche Börse AG as part of
Deutsche
part
cash pooling1)
n.a. 0 n.a. –13.1
13.1
Loans from Börse Frankfurt Zertifikate AG (until 1 Nov 2013:
Frankfurt
Zertifikate
1
Scoach Europa AG) to Deutsche
Europa
Börse AG
Börse AG as part of cash
pooling1)
n.a. 0 n.a. –1.4
1.4
Services of Deutsche Börse AG for Börse Frankfurt Zertifikate AG
Börse Frankfurt
1)
(until 1 Nov 2013: Scoach Europa AG)
n.a. 1.0 n.a. 0.5
Loans from Deutsche Börse AG to Digital Vega FX Ltd. 0 0 0.3 0.1
Operation of trading and clearing software by Deutsche Börse AG
Deutsche
2)
for European Energy Exchange AG and affiliates
affiliates
n.a. 1.9 n.a. 1.4
IT services and provisions of infrastructure by International
provisions
of
3)
Securities Exchange, LLC for Direct Edge Holdings, LLC
for
Direct Edge
n.a. 0.2 n.a. 0.6
Development and operation of the Link Up Converter system by
of
4)
Clearstream Services S.A. for Link Up Capital Markets, S.L.
S.A.
Link
Capital
n.a. 0.3 0 0.2
Transactions within the framework of gold under custody between
the
gold under
Deutsche Börse Commodities GmbH and Clearstream Ban
and
Banking
AG
–0.8 –1.2 –0.3 –0.4
0.4
Calculation services, provision of software solutions for indices
indices
and benchmark and operation of necessary software for Deutsche
benchmark
and
necessary
for
Börse AG by Indexium AG
–1.05) 0 –0.65) –2.4
2.4
Calculation services, provision of software solutions for indices
indices
and benchmark and operation of necessary software for STOXX
benchmark
and
necessary
for
STOXX
Ltd. by Indexium AG
–0.86) –0.6 –0.66) –1.7
1.7
Operation and development of Xontro by Deutsche Börse AG for
Börse
7)
BrainTrade Gesel
Gesellschaft für Börsensysteme mbH
lschaft für
1.5 1.4 0.6 0.4
Operation of the floor trading system by BrainTrade Gesellschaft
of
tradingsystem by
mbH7) for Deutsche Börse AG
für Börsensysteme mbH
–0.1 –0.2 0 0
Other transactions with associates
with associates
- - 0 0
1) Börse Frankfurt
Zertifikate AG and Börse Frankfurt Zertifikate Holding S.A. have been fully consolidated in Deutsche Börse AG's consolidated
Börse
Frankfurt
Zertifikate
since 1 July 2013.
2) European Energy Exchange AG has been fully consolidated in Deutsche Börse AG's consolida
has
in
in
3) Following completion of the merger agreement between Direct Edge Holdings, LLC and BATS Global Markets, Inc. on 31 January 20
of
agreement
Holdings,
to exercise significant influence over Direct Edge
Holdings, LLC; BATS Global Markets, Inc. is therefore no longer classified as an associate.
Holdings,
4) Shares in Link
in Link-Up Capital Markets, S.L. were sold effective 31 December 2013.
Up
sold
5) Thereof provision for development costs amounting to €0.6
to
million
6) Thereof provisions for development costs amounting to €0.6
development
amounting
million
fully
ted
Global
is
is thereforeno
classified
consolidated financial statements since 1 January 2014.
14,
financial statements
2014, it is no longer possible
possible

5) Thereof provision for development costs amounting to €0.6 provision ovisionsfor 2013 million

6) Thereof provisions for development costs amounting to €0.6 million

7) Associate since 1 July 2013

Transactions 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 managementresponsibility Deutschethethe BoardIASfirst quarter indirectly and planning, the activities members 24.

In the management personnel are, at the same time, members of Deutsche B at same of 2014, Deutsche Börse AG did not have business relations with entities whose key personnelof ,Börsenot have entities Börse AG's Supervisory Board.

17. Employees

management personnel are, at the same time, members of Deutsche B
personnel
at
same
of
örse
Börse AG's Supervisory Board.
Supervisory
17. Employees
Employees
31 Mar 2014 Quarter ended
31 Mar 2013
Average number of employees during the period
of
during
during
4,009 3,725
Employed as at the balance sheet date 4,028 3,728
The increase in the number of employees results largely from changes to the basis of consolidation
the
employees
largely
from
the
(196 employees).
Since new
jobs were created in connection with strategically important projects
number of employees increased by 104 persons year
of
year
year
of
date.
projects, the

There was an average of 3,753 full ( average (Q1/2013: 3,495 an3,495). full-time equivalent (FTE) employees during the time-on-year as at the balance sheet date. first quarter of 2014 On 23 April 2014, Deutsche Börse agreement for the Clearstream. The allows Clearstream to significantly expand its hedge fund services for financial institutions. purchase purchase announced that its subsidiary of Citco's Financial Institution Hedge Fund custody processing business to price amounts to a sum in the mid double digit mill ream Clearstream and Citco have signed an ream million euro range. The deal ionrange. The

The acquisition of Citco Global Securities Services' (CGSS) hedge fund custody infrastructure adds around 300 CGSS employees to Clearst structure. The two companies will ensure the takeover takes place in a gradual way in order to ensure a smooth transition. expandits financial Citco to The of hedge custody300companies inin AprilannouncedInstitution custody a inClearstream and licences Clearstream to use Citco's custody IT infr infra-

Frankfurt/Main, 28 April 2014

Deutsche Börse AG The Executive Main,The Board

Contact

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Publication date

28 April 2014 28

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The corporate report 2013 may be obtained from the publications service of Deutsche Börse Group. corporate publications Deutsche(0)69-2 11-1 15 10

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Financial calendar

28 April 2014 Q1/2014 results

15 May 2014 Annual General Meeting

3 June 2014 Investor day

24 July 2014 Half-yearly financial report

27 October 2014 Q3/2014 results

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