Ad-hoc | 7 November 2002 20:36

Deutsche Börse AG english

Continued growth in third quarter Ad-hoc-announcement processed and transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Continued growth in third quarter * Sales plus net interest income from banking business in third quarter of 2002 after first time consolidation of Clearstream at Euro 388.3 mn, 109 percent above previous year’s third quarter (Q3/2001: Euro 185.5 mn). Excluding the effects of Clearstream and entory acquisitions, underlying sales grew by 13 percent to Euro 210.0 mn versus the second quarter 2002. * Earnings before interest and tax (EBIT) at Euro 87.9 mn, 36 percent higher year-on-year; earnings reduced by writedown of goodwill on the acquisition of entory by Euro 33 mn, by write off on the IP system Xebos of Euro 3.9 mn and by Clearstream integration costs * Full acquisition and consolidation of Clearstream results in strong increase of operative cash flow to Euro 169.0 mn, more than doubling from Euro 78.5 mn in Q3/2001 * Earnings per share (using DVFA/SG standard) at 0.34 Eur (number of shares: 111.802.880) from 0.48 Eur in Q3/2001 (number of shares: 102.760.000) * Segment Eurex: sales at Euro 97.3 mn (Q3/2001: Euro 68.5 mn), a 42 percent increase; EBIT more than doubles to Euro 56.2 mn (Q3/2001: Euro 27.8 mn). Economies of scale result in material increase of EBIT margin to 58 percent * Segment Xetra: sales at Euro 53.5 mn slightly higher than in previous quarter (Q2/2002: Euro 52 mn), 8 percent decrease against Q3/2001: (Euro 58.2 mn) * Segment IT: external sales at Euro 41.1 mn, 31 percent above Q3/2001 (Euro 31.4 mn). EBIT due to writedown of goodwill on the acquisition of entory of Euro 33 mn at Euro – 1.5 mn (Q3/2001: Euro 20.5 mn). * Segment Information Products: sales at Euro 28.6 mn, four percent above Q3/2001. EBIT at Euro 5.6 mn (Q3/2001: Euro 5.5 mn) after write off of Xebos system (Euro 3.9 mn) * Segment Clearstream: replacing old segment “Settlement” with first time consolidation of Clearstream International. Sales plus net interest income from banking business at Euro167.8 mn, EBIT at Euro 38.4 mn including goodwill amortization of Euro 15.1 mn end of ad-hoc-announcement (c)DGAP 07.11.2002 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: Deutsche Börse with Record Sales Again in Third Quarter Sales and net interest income from banking business double to 388.3 million euros/ EBIT rises 36 percent to about 87.9 million euros in spite of writedown on goodwill Deutsche Börse AG continues to show further strong growth: In the third quarter, the company achieved its best result to date with record sales revenue of 388.3 million euros and an EBIT of 87.9 million euros. The third-quarter profit is diminished by 33 million euros due to a writedown on goodwill that resulted from the acquisition of entory. Excluding this exceptional item, the EBIT would amount to 120.9 million euros, a record quarter. Compared to the same quarter of last year, the sales revenue of Deutsche Börse Group more than doubled after consolidating the results of entory AG, Cedel International S.A. and Clearstream International S.A. (Q3/2001: 185.5 million euros). Sales revenue now contains external sales revenue and net interest income from banking business. Excluding the effects of Clearstream and entory acquisitions, underlying sales grew by 13 percent to Euro 210.0 mn versus the second quarter 2002.The reported earnings before interest and tax (EBIT) rose by 36 percent compared with the same quarter of last year (Q3/2001: 64.8 million euros). Deutsche Börse’s chief financial officer Mathias Hlubek said: “Against the background of the results for the first nine months of the current business year, we are confident that we will achieve our projected growth and profitability targets for the year as a whole.” The positive impact of the complete takeover of the settlement and custody business of Clearstream, he said, is reflected especially in the strong rise in cash flow from operating activities, which more than doubled, to 169.0 million euros, year-on-year (Q3/2001: Euro 78.5 mn). Eurex was the strongest segment in the Group again in the third quarter. The sales revenue, at 97.3 million euros, was 42 percent higher than in the same quarter of last year (Q3 2001: 68.5 million euros). The EBIT also rose again, more than doubling to 56.2 million euros (Q3 2001: 27.8 million euros). The segment’s EBIT margin, at 58 percent, demonstrates considerable scalability. The sales revenue of the Xetra segment, at 53.5 million euros, was eight percent lower than last year’s third-quarter figure (Q3 2001: 58.2 million euros) with EBIT decreasing to 1.4 million euros. Especially the costs for the planned introduction of the Central Counterparty for equities trading in the first quarter of 2003, weighed on the quarterly result. In the IT segment, the external sales revenue came to 41.1 million euros, 31 percent higher than the third-quarter figure in 2001. The EBIT declined to -1.5 million euros (Q3/2001: 20.5 million euros) due to the exceptional writedown on goodwill that arose on the acquisition of entory AG. In the Information Products segment, sales revenue rose slightly by four percent to 28.6 million euros, with an EBIT that was about 2 percent higher, at 5.6 million euros. This was influenced by a write off amounting to 3.9 million euros for the development costs of a price discovery system for bonds. In the Clearstream segment, sales revenue was 167.8 million euros and the EBIT 38.4 million euros after depreciation of goodwill amounting to 15.1 million euros. Key Figures on the Results for the Third Quarter and First Nine Months of 2002 Quarter ended Nine months ended 30.09.2002 30.09.2001 30.09.2002 30.09.2001 Sales revenue1) 388.3 185.5 798.5 560.1 (in Eur m) EBIT (in Eur m) 87.9 64.8 255.3 225.3 Profit before tax from ordinary activities (in Eur m) 92.2 75.3 276.6 257.6 Net profit for the period (in Eur m) 38.9 48.5 162.7 165.9 Cash flow from operating activities (in Eur m) 169.0 78.5 349.1 155.4 DVFA/SG earnings per share (in Eur) 0.34 0.48 1.53 1.69 DVFA/SG cash flow per share (in Eur) 1.26 0.57 2.96 2.12 Number of shares2) 111,802,880 102,760,000 106,204,907 98,753,040 1) External sales revenue and net interest income from banking business 2) Weighted average number of shares outstanding ——————————————————————————– WKN: 581005; ISIN: DE0005810055; Index: MDAX Listed: Amtlicher Markt in Frankfurt; Freiverkehr in Berlin, Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart 072036 Nov 02