After several years of continuous growth, the global economy is currently in a state of great uncertainty as a result of the global financial crisis. In the fourth quarter of 2008 the economic environment deteriorated yet further after the collapse or near-collapse of US and European financial institutions. Extensive measures on the part of central banks and governments throughout the world to support troubled companies at the end of 2008 were followed by further steps in the first weeks of 2009 to stabilize both the economy in general and specific banks and companies and to restore confidence in the financial markets. At the time the consolidated financial statements were prepared, discussions were being held in several countries regarding the establishment of institutions to take over and manage distressed banks (“bad banks”). The reason for this is an attempt to improve the financial institutions’ risk situation, which continues to be difficult, and in so doing to stabilize the financial system. In view of the last months’ dramatic events, Deutsche Börse Group cannot predict just how far-reaching the global economic downturn will be and how long it will last. In their first forecasts for 2009, leading economic research institutes are predicting negative economic growth of around 2.0 percent in the euro zone and 2.5 percent in Germany. If the predicted contraction in the economy is worse than anticipated, Deutsche Börse Group believes that the financial markets may continue to be dominated by uncertainty and caution, and the prices for certain securities remain low. If additional financial institutions should collapse in the near future, Deutsche Börse Group is of the opinion that this could have a considerable effect on the stability of the global financial system and lead to a further deterioration in economic growth. The events of the preceding weeks and months have shown that if this should occur, the expectations and assumptions referred to in this report should be reviewed carefully. Despite the change in the operating environment, Deutsche Börse Group has no plans in the forecast period for any material changes to its integrated business model with an emphasis on trading, clearing, processing and custody of securities and derivatives. Based on its successful business model, which covers the entire process chain for securities transactions and the most prominent investment classes, Deutsche Börse will continue to observe trends in the financial markets worldwide and leverage them for the development of its products and services. The Company’s key strategic goal is to provide all customers with outstanding services. With its scalable electronic trading platforms, Deutsche Börse believes it is very well positioned to compete with other providers of trading and settlement services. |
