Deutsche Börse AG

Business and Financial Review • Dec 10, 2010

News Details

Ad-hoc | 10 December 2010 16:55

Deutsche Börse AG: ISE impairment, Transfer of shares to Clearstream Holding AG, Cost guidance 2011

Deutsche Börse AG / Key word(s): Miscellaneous/Miscellaneous

10.12.2010 16:55

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
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Deutsche Börse AG is expecting a non-cash impairment charge on intangible
assets in the range of EUR450 million relating to the International
Securities Exchange (ISE) for financial year 2010. The impairment charge
will be partially offset by a reduction in deferred tax liabilities
relating to ISE. All in all, the company anticipates that the impairment
will lead to a reduction in IFRS consolidated net income for 2010 in the
range of EUR220 million. The figures are subject to preparation and
auditing of the annual financial statements 2010. The impairment does not
affect key credit metrics, such as the interest coverage ratio or net
tangible equity. ISE continues to operate profitably.
In addition, Deutsche Börse AG plans to transfer its remaining shares (49%)
in Clearstream International S.A., which it did not yet transfer as part of
the implementation of the Clearstream interim holding structure in 2009, to
Clearstream Holding AG at fiscal book value by the end of the year. The
transfer does not affect consolidated earnings in accordance with IFRS. In
the financial statement prepared in accordance with German GAAP
(Handelsgesetzbuch - HGB) this step will have a positive impact on earnings
of around EUR440 million. The measure has no effect on the strong financial
position of the Clearstream subgroup or the integrated business model of
Deutsche Börse Group.
In the first nine months of 2010 the Company generated cash flow from
operating activities of EUR675.5 million (Q1-3/2009: EUR592.8 million). The
Company also anticipates a significant positive cash flow from operating
activities for the fourth quarter since the impairment in connection with
ISE is a non-cash item. The strong liquidity situation underscores Deutsche
Börse AG's ability to pay a stable dividend compared to the previous year
(2009: EUR2.10). Deutsche Börse AG's Supervisory Board will discuss the
dividend proposal for financial year 2010 with the presentation of
preliminary results in February 2011.
The Company confirms that costs for 2010 will be considerably lower
compared to the original forecast. With operating costs of around EUR935
million and volume-related costs of approximately EUR215 million, total
costs for the current financial year are expected to be around EUR1,150
million before costs for efficiency programs and the ISE impairment. In
2011 the Company expects a further improvement of operating costs by around
EUR60 million due to the ongoing efficiency measures. The savings will be
partly offset by a cost increase from inflation of around EUR20 million,
along with a further rise in expenditures for organic growth initiatives
and infrastructure by around 1/3 (EUR30 million) to approximately EUR120
million. The Company expects a rise in volume-related costs, which are
considerably influenced by Clearstream, to around EUR235 to EUR255 million.
This increase is attributable in particular to the anticipated growth at
Clearstream. This means that the total cost forecast for 2011 is around
EUR1,160 to EUR1,180 million, before costs for efficiency programs of
approximately EUR30 million.

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Language: English
Company: Deutsche Börse AG
Neue Börsenstraße 1
60487 Frankfurt am Main
Deutschland
Phone: +49 (0)69 211 - 0
Fax: +49 (0)69 211 - 12005
E-mail: ir@deutsche-boerse.com
Internet: www.deutsche-boerse.com
ISIN: DE0005810055
WKN: 581005
Indices: DAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, Hamburg, Hannover, München, Stuttgart;
Terminbörse EUREX

End of Announcement DGAP News-Service

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