Deutsche Börse Group: Next Phase of Program to Optimize Operational Processes and Costs Decided

Deutsche Börse AG has completed its review of potential measures to further increase the efficiency of Deutsche Börse Group and resolved today the next phase of a multi-year program to optimize operational processes and structures across the Group. As already communicated, the objective of the program is to improve flexibility and effectiveness of using resources across the Group, to reduce time to market, and to further increase Deutsche Börse Group’s efficiency while at the same time identifying and realizing new growth opportunities. The company expects additional savings in operating costs of around €100 million per year. This program complements the cost measures initiated between 2007 and February 2010.

Therewith, Deutsche Börse Group is taking another step in addressing structural changes in financial markets as well as new customer requirements. At the same time, the Company steps up investments to seize growth opportunities. Consequently, the budget for growth initiatives has already been increased by more than 50 percent as against the previous year to around €100 million in 2010. As a result of this step, Deutsche Börse Group is well-positioned to assume a leading role amongst the operators of financial markets infrastructure also in the future. This includes in particular the Company’s strengths in technology, risk management and product innovation.

The additional cost savings of around €100 million per year under this program shall be fully realized by 2013. One third of the volume is expected to be achieved as soon as 2011, and two thirds in 2012. The implementation costs to achieve these savings are expected to be below €200 million and, following detailed specifications, will be formally decided by the Supervisory Board. The majority of this amount shall be recognized in the income statement in the form of provisions already in 2010. The Supervisory Board was informed about the cornerstones of the program today and supports the immediate implementation.

As part of this program the Company will further optimize processes and focus on core competencies. In addition, the Group will also reallocate operating functions within the European Union. The integration of services sourced externally so far, such as for IT, will contribute to this. The number of external service providers will be reduced by around 50% as a consequence of the program. At the same time, the Company plans to open its new and innovative trading system for other markets. This will lead to further harmonization of Deutsche Börse Group’s IT infrastructure. Also, the Group’s presence in Asia, especially in Singapore, will be further developed to strengthen customer proximity in key growth regions.

In all, these measures are expected to impact around 370 positions at Deutsche Börse Group, particularly in Frankfurt and Luxembourg. Around 2/3 of these jobs are expected to be redistributed to the existing Group’s location in Prague. On Group level, all personnel related efficiency steps decided since the beginning of the year are expected to lead to a staff capacity reduction of around 3 percent or below 100 jobs. Thus, the Group will be able to increase efficiency levels significantly.

Together, the €50 million cost savings announced in February 2010 and today’s decision to increase efficiency by another €100 million per year add up to a total of €150 million cost savings in 2013. The cost guidance for 2010 remains unchanged at a maximum of €1,250 million before provisions for restructuring charges of around €40 million for the cost program announced in February and below €200 million for the program announced today.