Tax Strategy 2017

Introduction

Deutsche Börse Group stands for transparency, fairness, neutrality, stability and efficiency.

During the last years, the Group has demonstrat-ed that it is a reliable partner of the political community and regulators and has supported its customers with the implementation of different regulatory requirements along the value chain.

The Group aims to constantly fulfil its high func-tional, strategic and macroeconomic responsi-bility. Deutsche Börse Group is aware of the fact that it operates in a complex legal environment and incurs very varied tax obligations with its domestic and foreign business activities.

In addition to a clearly defined organisational structure, it is therefore necessary to provide clear guidance on the tax strategy pursued by Deutsche Börse Group.

Such guidance applies to Deutsche Börse AG and all its subsidiaries. The tax strategy applies to all types of taxes, which these entities have to declare, withheld or to pay.


Tax strategy

Integration into business strategy

The business strategy of Deutsche Börse Group defines as main objective inter alia to grow faster in the future and to be number one or two in every business Deutsche Börse Group is active in.

This business strategy is pursued under con-sideration of the risk strategy and the regulations of Deutsche Börse Group’s code of business conduct.

The tax strategy is derived from this framework and includes the following segments:

  • Compliance
  • Risk

Compliance

The key element of Deutsche Börse Group’s tax strategy is compliance with the applicable legal requirements.

This is also the basis of Deutsche Börse Group’s code of business conduct:

Compliance with laws and regulations

Deutsche Börse Group and its employees adhere to the letter and the spirit of applicable laws, regulations and Group policies. The Group does not condone illegal activity, such as financial misreporting and misconduct or financial crime including fraud, market abuse, money laundering, bribery, corruption or non-compliance with financial sanctions.

Compliance with legal requirements from a tax perspective includes ensuring

  • the timely and proper fulfillment of the tax obligations and
  • the material correctness of the tax positions determined within the annual financial statements and tax declarations.

In order to meet the compliance-related objectives for different tax types, mandatory guidelines and process flows including controls have been defined. The guidelines inter alia include requirements for the consultation of Group Tax in tax-relevant matters in order to ensure a correct tax treatment.

The guidelines and other specifications have been communicated to all employees with tax-related tasks and are subject to at least annual controls in order to ensure that legal developments and business changes are taken into account.

Risk

The tax strategy of Deutsche Börse Group further-more includes the objective of minimising tax risks. As the basis of the tax strategy, the code of business conduct defines the principles of risk management as follows:

Risk management

Deutsche Börse Group’s ability to recognise and appropriately manage risks is essential to the Group’s roles as a reliable provider of financial market infrastructures. Moreover, the Group’s core area of expertise includes solutions that enable its customers to efficiently manage risk and collateral. Every employee is expected to act in accordance with the Group’s risk management principles:

  • Make markets safer.Dedicated employees provide superb risk management services to customers to promote the integrity, trans-parency, efficiency and the safety of capital markets.
  • Understand the risks taken.It is each em-ployee’s duty to identify, understand and assess the risks facing the Group in their respective area of competence.
  • Manage risk efficiently.To be in line with the overall risk appetite employees manage risk efficiently.
  • Ensure that the expected return fairly com-pensates the risks.The Group’s management creates transparency on risk and return per segment, product and customer, and in doing so adds value to strategic decisions.

From a tax perspective, the following requirements result from the code of business conduct:

  • Minimisation of tax risks through effective tax risk management and risk monitoring
  • Responsible tax planning in accordance with the law; this means that transactions must be structured in such a way that tax savings are not gained by disguising the actual content of the transaction.
  • Avoidance of inappropriate structuring.

Deutsche Börse AG
60485 Frankfurt am Main
www.deutsche-boerse.com

May 2017

Reference number 9085-4732