🔥 Premium AI-powered Stock Picks from InvestingPro Now up to 50% OffCLAIM SALE

Deutsche Börse unveils 'Horizon 2026' strategy for robust organic growth

EditorRachael Rajan
Published 2023/11/07, 16:08
© Reuters.

Deutsche Börse AG has introduced its "Horizon 2026" strategy, aiming for an average annual net revenue growth of around 10% compared to 2022, which is expected to reach €6.4 billion in 2026. The strategy primarily focuses on organic growth and the establishment of the new Investment Management Solutions (IMS) segment, as explained by CEO Theodor Weimer.

The IMS segment, which combines ISS, STOXX, Axioma, and SimCorp's software and SaaS business, is anticipated to boost Deutsche Börse's recurring revenues and generate €90 million synergy potential on EBITDA level. The merger of SimCorp and Axioma will provide comprehensive investment solutions for institutional investors, leveraging high-quality data from ISS's ESG business and STOXX's index business for new indices development.

Additionally, the firm plans to capitalize on the digitalization of asset classes and their trading and settlement platforms. This includes expanding cloud usage, accelerating the development of Clearstream's D7 platform, and establishing a trading platform for digital assets.

In terms of profitability, Deutsche Börse forecasts an average annual EBITDA increase of around 11%, reaching approximately €3.8 billion. As part of its refined capital management strategy, the company plans to distribute dividends equivalent to between 30% and 40% of net profit to shareholders. In case of surplus liquidity, dividends will be supplemented with share buy-backs. A €300 million share buy-back programme has been approved for Q1 2024.

The "Horizon 2026" strategy also targets a seven per cent organic growth per year until 2026, bolstered by three per cent annual growth from SimCorp's acquisition. These financial projections are integral to the strategy approved by the Executive Board and due for presentation at the Investor Day.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.