Deutsche Börse AG / Miscellaneous
23.03.2010 18:36
Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by
DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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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 EUR100 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 EUR100 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 EUR100 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
EUR200 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 EUR50 million cost savings announced in February 2010 and
today's decision to increase efficiency by another EUR100 million per year
add up to a total of EUR150 million cost savings in 2013. The cost guidance
for 2010 remains unchanged at a maximum of EUR1,250 million before
provisions for restructuring charges of around EUR40 million for the cost
program announced in February and below EUR200 million for the program
announced today.
23.03.2010 18:36 Ad hoc announcement, Financial News and Media Release distributed by DGAP. Medienarchiv at |[![CDATA[|[a href="http://www.dgap-medientreff.de"|]www.dgap-medientreff.de|[/a|]]]|] and |[![CDATA[|[a href="http://www.dgap.de"|]www.dgap.de|[/a|]]]|]
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Language: English
Company: Deutsche Börse AG
Neue BörsenstraÃe 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, München, Hannover, Düsseldorf, Hamburg, Stuttgart;
Terminbörse EUREX
End of News DGAP News-Service
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DGAP-Adhoc: Deutsche Börse AG: Deutsche Börse Group: Next phase of program to optimize operational processes and costs decided
| Source: EQS Group AG