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Deutsche Börse AG has introduced its ‘Horizon 2026’ strategy, which targets average annual net sales growth of approximately 10% compared to 2022, which is expected to reach €6.4 billion in 2026. The strategy is primarily focused on organic growth and establishing the new Investment Management Solutions (IMS) segment, as explained by CEO Theodor Weimer.
The IMS segment, which combines the software and SaaS businesses of ISS, STOXX, Axioma and SimCorp, is expected to boost Deutsche Börse’s recurring revenues and generate synergy potential of €90 million at EBITDA level. The merger of SimCorp and Axioma will provide comprehensive investment solutions for institutional investors, using high-quality data from ISS’s ESG activities and STOXX’s index activities to develop new indices.
In addition, the company plans to benefit from 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 digital asset trading platform.
In terms of profitability, Deutsche Börse forecasts an average annual EBITDA increase of around 11%, to around €3.8 billion. As part of its refined capital management strategy, the company plans to pay dividends equal to 30% to 40% of net profit to shareholders. In case of excess liquidity, dividends will be supplemented with share buybacks. A €300 million share buyback program has been approved for the first quarter of 2024.
The ‘Horizon 2026’ strategy also targets organic growth of seven percent per year until 2026, supported by annual growth of three percent following the acquisition of SimCorp. These financial projections are an integral part of the strategy approved by the Board of Directors and which will be presented at the Investor Day.
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