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DWS Group GmbH & Co. KGaA (0SAY.L)

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Previous close38.32
Open38.54
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Day's range38.36 - 38.60
52-week range38.36 - 38.60
Volume3,031
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Market cap7.732B
Beta (5Y monthly)1.35
PE ratio (TTM)13.81
EPS (TTM)2.78
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  • EQS Group

    DWS 2020: Highly Successful in Difficult Times, Medium-Term Targets Achieved Ahead of Plan

    DGAP-News: DWS Group GmbH & Co. KGaA / Key word(s): Annual Results/Quarter Results04.02.2021 / 07:19 The issuer is solely responsible for the content of this announcement. Net inflows again higher, resulting in a total of EUR 30.3bn net new assets in FY 2020, EUR 13.6bn in Q4. Ex Cash EUR 10.8bn in FY 2020, EUR 8.3bn in Q4 Adjusted Cost-Income Ratio (CIR) at 64.5% in 2020, achieving target for 2021; 64.9% in Q4 Adjusted profit before tax increased by 3% to EUR 795m in 2020 (FY19: EUR 774m); EUR 212m in Q4 2020, down 2% q-o-q; net income at EUR 558m in FY 2020, up 9% Adjusted costs reduced by 11% to EUR 1,442m in FY 2020 (FY19: EUR 1,615m). EUR 393m in Q4 2020 (Q3: EUR 342m), up 15% q-o-q, among other things, due to higher deferred compensation relating to DWS share price development in Q4 2020 Total revenues of EUR 2,237m in FY 2020 (FY19: EUR 2,389m), down 6% due to certain additional fund performance fees recognized in 2019; total revenues up in Q4 2020 by 8% q-o-q to EUR 605m (Q3: EUR 558m), mainly due to higher management fees AuM further up by EUR 25bn to EUR 793bn in 2020 (Q3: EUR 759bn; Q4 2019: EUR 767bn) The Executive Board will propose a dividend of EUR 1.81 per share for the 2020 financial yearBusiness Development2020 has been another strong year for DWS. We proved our resilience and the strength of our diversified business model amid the ongoing pandemic. As a result, we have achieved our ambitious medium-term targets, set at our IPO in 2018, one year earlier than planned, completing the first phase of our corporate journey as a publicly listed firm. We increased net flows to EUR 30 billion in 2020. Assets under Management also increased by EUR 25 billion year-on-year to a record volume of EUR 793 billion. Our laser focus on cost efficiency also continues to pay off, with our adjusted cost base declining significantly compared to the prior year. As a result, we delivered our adjusted Cost-Income Ratio target of below 65 percent ahead of schedule. While management fees remained stable, the absence of certain fund performance fees recognized in 2019 led to a year-on-year decrease in revenues. On the bottom-line, adjusted profit before tax increased by 3 percent and net income rose by 9 percent in FY 2020. In line with our 65 to 75 percent dividend payout ratio target, the DWS Executive Board will propose a dividend of EUR 1.81 per share for the 2020 financial year.Total revenues decreased by 6 percent to EUR 2,237 million in 2020 (FY19: EUR 2,389 million). This was due to the absence of certain performance fees recognized in 2019, while management fees remained stable. In Q4 2020 total revenues increased by 8 percent to EUR 605 million (Q3 2020: EUR 558 million), mainly driven by higher Management fees as a result of increased average Assets under Management during the quarter.Adjusted profit before tax improved by 3 percent to EUR 795 million in 2020 (FY19: EUR 774 million) as we reduced our adjusted cost base. In Q4 2020 the adjusted profit before tax stood at EUR 212 million (Q3: EUR 215 million), driven by higher adjusted costs. After tax, DWS posted a 9 percent higher net income of EUR 558 million for the financial year 2020 (FY19: EUR 512 million; Q4 2020: EUR 164 million; Q3 2020: EUR 151 million). The Executive Board will propose again an increased dividend of EUR 1.81 per share for the financial year 2020 (FY19: EUR 1.67), in line with our commitment to a 65 to 75 percent dividend payout ratio.Assets under Management (AuM) further rose by EUR 33 billion to EUR 793 billion in the fourth quarter of 2020 (Q3 2020: EUR 759 billion) with favorable market developments as the main driver supported by net flows. Starting with AuM of EUR 767 billion at the beginning of 2020, the annual increase of EUR 25 billion was driven by a combination of strong net inflows and positive market developments, more than offsetting the negative impact of exchange rate movements.2020 net flows of EUR 30.3 billion were higher than strong prior year net inflows of EUR 26.1 billion. 2020 flow numbers peaked in the fourth quarter, which contributed EUR 13.6 billion (EUR 8.3 billion excluding Cash) in net new assets. 2020 net inflows were primarily driven by Passive (EUR 16.6 billion) and Cash products (EUR 19.5 billion) and further supported by Alternatives (EUR 4.0 billion). Based on their strong performance, ESG-dedicated funds accounted for 30 percent of our total annual net inflows in 2020. All three coverage regions, Americas, Europe and Asia-Pacific, achieved net inflows in the fourth quarter as well as in 2020.Active Asset Management ex Cash recorded net flows of EUR 767 million in the fourth quarter (Q3 2020: minus EUR 935 million). Multi Asset generated inflows of EUR 787 million driven by institutional mandates. Active Equity recorded net inflows of EUR 236 million with inflows into ESG equity funds. Active Fixed Income continued the positive flow trend with net new assets of EUR 146 million due to continued high demand by institutional mandates. Active SQI recorded net outflows of minus EUR 402 million. In total, Active Asset Management ex Cash recorded net outflows of minus EUR 9.8 billion in 2020 (FY19: minus EUR 0.7 billion). While Active Equity generated positive net flows in FY 2020, the other Active (ex Cash) product classes recorded outflows, reflecting the challenging market environment in 2020. Cash products recorded high net inflows of EUR 19.5 billion in 2020 (FY19: minus EUR 2.5 billion) and EUR 5.3 billion in Q4 as investors sought safe havens amid market uncertainty given the prevailing pandemic.Passive Asset Management generated net flows of EUR 5.9 billion in the fourth quarter (Q3 2020: EUR 6.3 billion). The continued strong flow momentum again was driven by high demand for ETPs (exchange-traded funds and commodities). All in all, this high demand led to Passive Asset Management generating strong inflows of EUR 16.6 billion in 2020 (FY19: EUR 19.1 billion). DWS ranked second in ETP net flows in Europe in the fourth quarter and in FY 2020 (source: ETFGI).Alternatives doubled net new assets in the fourth quarter to EUR 1.7 billion (Q3 2020: EUR 846 million). This increase was mainly driven by Illiquid Alternatives - based in particular on high inflows into Infrastructure funds - and was supported by Liquid Alternatives. In total, Alternatives generated net inflows of EUR 4.0 billion in 2020 (FY19: EUR 10.2 billion), driven by net new assets of EUR 3.3 billion in Illiquid Alternatives. In particular, DWS Grundbesitz real estate funds family and Infrastructure funds were able to attract high demand. Liquid Alternatives also made a positive contribution to the net inflows for the year as a whole.Adjusted costs were managed down by 11 percent year-on-year to EUR 1,442 million in FY 2020 (FY19: EUR 1,615 million). Here our management focus on efficiency and cost measures continued to pay off with an 11 percent decrease in general and administrative expenses and a 10 percent decline in compensation and benefits costs. This included additional savings due to the impact of the COVID-19 pandemic. Adjusted costs increased quarter-on-quarter to EUR 393 million in Q4 2020 (Q3 2020: EUR 342 million), primarily due to higher deferred compensation relating to the strong DWS share price development in Q4 2020 as well as early investments into growth and transformation projects, higher marketing spend and higher volume related service charges.The adjusted Cost-Income Ratio (CIR) improved by 3.1 percentage points to 64.5 percent in 2020 (FY19: 67.6 percent), enabling us to reach our medium-term adjusted CIR target of below 65 percent one year earlier than planned. The adjusted CIR stood at 64.9 percent in the fourth quarter of 2020 (Q3 2020: 61.4 percent).Growth Initiatives and Strategic ProgressLike the rest of the world, DWS had to adapt to a "new normal" in 2020, reconsidering the ways in which it engages with clients and shareholders, while ensuring the wellbeing of its people. It was also a year in which we stepped up our ESG efforts to ensure we are protecting our planet and people. However, the challenges of 2020 did not change our commitment to our clients as we worked more closely than ever to serve their needs in these unprecedented circumstances. In addition, we made significant organizational changes in the summer to ensure that DWS becomes more client-centric, flexible, efficient and effective as one globally integrated firm in order to enable growth amid ongoing industry mega trends. Furthermore, we were able to extend and deepen important strategic partnerships in 2020.Sustainability also remains high on our strategic agenda. This also held true during the fourth quarter. We established a high-calibre ESG Advisory Board to advise the DWS Executive Board on the development and execution of its ESG strategy. Moreover, we publicly committed to becoming climate-neutral in our actions as a corporate and a fiduciary - in line with the Paris Agreement - and well ahead of the timeline officially set out in the Agreement. We joined the founding signatory group on "Net Zero Emissions Goal" initiative by the Institutional Investors Group on Climate Change. In addition, we achieved an independent ESG rating from CDP (Carbon Disclosure Project). With this rating, DWS is able to better understand its impact on the environment and more importantly, to do something about it. Client activity also significantly bends towards ESG solutions: DWS' European-listed ESG Xtrackers ETFs exceeded EUR 3 billion in assets and DWS' SDG strategy broke through the EUR 1 billion asset threshold during the fourth quarter. OutlookWhile we expect the COVID-19 pandemic to continue impacting our day-to-day activities in the first half of 2021, we are fully committed to ensuring that DWS remains successful in the long-term. Following the achievement of our IPO medium-term targets, we are, in 2021, entering the second phase of our corporate journey as a publicly listed firm. For this next phase, we have a clear roadmap. Both for 2021 and beyond. DWS will further transform key parts of its organization, building on the work that has already been done. This includes doing everything we can to continue to strengthen our asset management focused approach. Therefore, we are developing and investing in a core platform, including IT and a policy framework, tailored to DWS' fiduciary business and its clients. This transformation also includes integrating new technology into our work, such as artificial intelligence. The use of data and algorithms will improve investment managers in their decision making in the future. And with the help of automation we will also ensure better and more efficient processes. We will also go through a cultural transformation that is performance-driven and a clear meritocracy, helping us to attract the best talents from a wide range of profiles and backgrounds. The introduction of flat hierarchies through our new functional role framework is the biggest milestone in this area and will also ensure that we can reduce hierarchical thinking. In this second phase of our corporate journey, DWS will grow - both organically and inorganically -, investing into targeted growth areas, building on our strengths and existing expertise. Above all, we will invest in areas where we can be a leader in our industry. For example, we want to be a leading European ETF provider. We will invest into investment strategies on both ends of the spectrum: high-margin asset classes and products in the Active and Alternatives space on one side, and into our scalable Passive business, especially in ETFs, on the other side. In all these areas, we already have strong market positions and proven expertise that we intend to build on further. We are equally committed to invest into expanding our client base. Therefore, we want to further leverage existing partnerships and find new ones - especially in the growth region of Asia. There, and particularly in China, we see great potential to broaden our client base.And finally, we will not slow down in targeting growth in the area of ESG investing. The subject of sustainability has become an indispensable part of the zeitgeist. And keeping our commitment to making ESG the core of what we do, we will invest into product innovations in this field and position us as the go-to one-stop-shop ESG investment manager. DWS will transform and grow profitably. We will do so to become a leading European asset management firm with global reach as we shape the second phase of our corporate journey after the IPO. Going forward we have set ourselves two medium-term financial targets: Until the end of 2024, we want to achieve an adjusted Cost-Income Ratio of 60 percent - with non-linear development especially in the investment phase - and net flows of more than 4 percent on average. For 2021, we expect the following developments: Revenues will benefit from higher market levels at the beginning of 2021, while we will see further benefits from our cost saving initiatives. In addition, we will see first investments into growth and transformation. At the same time, we will maintain an adjusted Cost-Income Ratio of below 65 percent. 2020 figures published in this quarterly release are preliminary and unaudited.Contact details for further informationMedia Relations Investor RelationsAdib Sisani Oliver Flade+49 69 910 61960 +49 69 910 63072adib.sisani@dws.com oliver.flade@dws.comKarsten Swoboda Jana Zubatenko+49 69 910 14941 +49 69 910 33834karsten.swoboda@dws.com jana.zubatenko@dws.comWebcast/CallAsoka Woehrmann, Chief Executive Officer, and Claire Peel, Chief Financial Officer, will elaborate on the results in an investor and analyst call on 4 February 2021 at 10 am CET. The analyst webcast/call will be held in English and broadcasted on https://group.dws.com/ir/reports-and-events/financial-results/. It will also be available for replay. Further details will be provided under https://group.dws.com/ir/.About DWS GroupDWS Group (DWS) is one of the world's leading asset managers with EUR 793bn of assets under management (as of 31 December 2020). Building on more than 60 years of experience, it has a reputation for excellence in Germany, Europe, the Americas and Asia. DWS is recognized by clients globally as a trusted source for integrated investment solutions, stability and innovation across a full spectrum of investment disciplines.We offer individuals and institutions access to our strong investment capabilities across all major asset classes and solutions aligned to growth trends. Our diverse expertise in Active, Passive and Alternatives asset management - as well as our deep environmental, social and governance focus - complement each other when creating targeted solutions for our clients. Our expertise and on-the-ground-knowledge of our economists, research analysts and investment professionals are brought together in one consistent global CIO View, which guides our investment approach strategically.DWS wants to innovate and shape the future of investing: with approximately 3,500 employees in offices all over the world, we are local while being one global team. We are investors - entrusted to build the best foundation for our clients' future. Important NoteThis release contains forward-looking statements. Forward-looking statements are statements that are not historical facts; they include statements about our beliefs and expectations and the assumptions underlying them. These statements are based on plans, estimates and projections as they are currently available to the management of DWS Group GmbH & Co. KGaA. Forward-looking statements therefore speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events.By their very nature, forward-looking statements involve risks and uncertainties. A number of important factors could therefore cause actual results to differ materially from those contained in any forward-looking statement. Such factors include the conditions in the financial markets in Germany, in Europe, in the United States and elsewhere from which we derive a substantial portion of our revenues and in which we hold a substantial portion of our assets, the development of asset prices and market volatility, the implementation of our strategic initiatives, the reliability of our risk management policies, procedures and methods, and other risks.This document contains alternative performance measures (APMs). For a description of these APMs, please refer to the Annual Report, which is available at https://group.dws.com/ir/reports-and-events/annual-report/. 04.02.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de Language: English Company: DWS Group GmbH & Co. KGaA Mainzer Landstaße 11-17 60329 Frankfurt/Main Germany Phone: +49 (0) 69 910 14700 Fax: +49 (0) 69 910 32223 E-mail: investor.relations@dws.com Internet: https://group.dws.com/de/ir/ ISIN: DE000DWS1007 WKN: DWS100 Indices: SDAX Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange EQS News ID: 1165657 End of News DGAP News Service

  • EQS Group

    DWS Q3: Continued Strength of Business - Key Medium-Term Targets To Be Reached this Year

    DGAP-News: DWS Group GmbH & Co. KGaA / Key word(s): 9 Month figures/Quarter Results28.10.2020 / 07:03 The issuer is solely responsible for the content of this announcement. Net flows of EUR 10.5bn in Q3 resulting in EUR 16.7bn in the first nine months of 2020 (Q2 2020: EUR 8.7bn; ex Cash EUR 6.2bn in Q3 2020, EUR 2.4bn in Q2 2020) Adjusted costs at EUR 342m, down by 5% q-o-q due to lower compensation & benefits costs; EUR 1,049m in 9M 2020, reduced by 12 percent y-o-y Adjusted Cost-Income Ratio (CIR) significantly improved to 61.4 percent in Q3 (Q2 2020: 65.7 percent); target level reached early on: 64.3 percent in 9M 2020, reduced by 5.9 ppt y-o-y Adjusted profit before tax increased by 14 percent to EUR 215m in Q3 (Q2 2020: EUR 189m); 9M 2020: EUR 583m, increased by 15 percent y-o-y Total revenues up 1 percent to EUR 558m in Q3 (Q2 2020: EUR 551m), mainly due to higher Management fees; in 9M 2020 total revenues at EUR 1,632m, down 4 percent y-o-y AuM increased further to EUR 759bn in Q3 (Q2 2020: EUR 745bn) due to better markets and net inflowsBusiness DevelopmentDWS once again proved its financial resilience and the strength of its diversified business model amid the ongoing pandemic. Revenues increased by 1 percent quarter-on-quarter while net flows further increased to EUR 10.5 billion in the third quarter. Assets under Management also increased by EUR 14 billion quarter-on-quarter to EUR 759 billion. Our management focus on efficiency and cost measures continues to pay off, with our adjusted cost base declining significantly year-on-year in the first nine months of 2020. We also remain firmly on track to achieve our gross cost savings objective of EUR 150 million by 2021. We expect that this will enable us to achieve our medium-term adjusted Cost-Income Ratio target of below 65 percent early on. Adjusted profit before tax increased by 14 percent quarter-on-quarter and by 15 percent year-on-year in the first nine months of 2020. Total revenues rose quarter-on-quarter by 1 percent to EUR 558 million in Q3 2020 (Q2 2020: EUR 551 million; Q3 2019: EUR 560 million). This was due to the higher Management fees as a result of increased average Assets under Management during the quarter. Total revenues were EUR 1,632 million in the first nine months of 2020 (9M 2019: EUR 1,702 million). The 4 percent decrease year-on-year reflects the impact of the negative interest rate development on the fair value of guarantees and the absence of the non-recurring Alternatives fund performance fee recorded in Q2 2019.Adjusted profit before tax increased by 14 percent quarter-on-quarter to EUR 215 million (Q2 2020: EUR 189 million; Q3 2019: EUR 170 million). After tax, DWS posted a quarter-on-quarter significantly increased net income of EUR 151 million for the third quarter 2020 (Q2 2020: EUR 122 million; Q3 2019: EUR 116 million). Adjusted profit before tax for the first nine months of 2020 increased by 15 percent year-on-year to EUR 583 million (9M 2019: EUR 508 million). Net income rose in the first nine months of 2020 year-on-year by 19 percent to EUR 394 million (9M 2019: EUR 330 million).Assets under Management (AuM) increased to EUR 759 billion in the third quarter of 2020 (Q2 2020: EUR 745 billion). This was driven by the positive market development and strong net flows, while exchange rate movements had again a negative impact on our AuM.We successfully achieved again higher net flows of EUR 10.5 billion in the third quarter of 2020 (ex Cash: EUR 6.2 billion), generating total net inflows of EUR 16.7 billion in the first nine months of 2020. Based on their strong performance, ESG-dedicated funds accounted for more than one third of the flows in the first nine months of the year. The very strong inflows in the third quarter were primarily driven by Passive (EUR 6.3 billion) and further supported by Cash products (EUR 4.3 billion) and Alternatives (EUR 0.8 billion), while Active (ex Cash) saw reduced net outflows (minus EUR 0.9 billion). All three coverage regions, Americas, Europe and Asia-Pacific, recorded net inflows in the third quarter as well as in the first nine months of the year.Active Asset Management ex Cash recorded net outflows of minus EUR 935 million in the third quarter (Q2 2020: minus EUR 4.1 billion). The sub asset classes show a mixed picture. While Active Fixed Income came into positive territory and generated net inflows of EUR 2.5 billion driven by institutional mandates, the other active product classes were unable to avoid outflows. Active Equity recorded net outflows of minus EUR 1.1 billion, with inflows into ESG equity funds being a bright spot. Active Multi Asset saw outflows of minus EUR 1.2 billion driven by a single institutional redemption. Flagship fund DWS Dynamic Opportunities once again defied the trend and generated further inflows, while DWS Concept Kaldemorgen was flat. Active SQI recorded net outflows of minus EUR 1.0 billion and Cash saw net new assets of EUR 4.3 billion.Passive Asset Management generated net flows of EUR 6.3 billion in the third quarter (Q2 2020: EUR 6.5 billion). The continued very strong flow momentum again was driven by net flows into ETPs (exchange-traded funds and commodities). DWS ranked second in ETP net flows in Europe with a 14 percent flow market share in the first nine month of the year (source: ETFGI).Alternatives saw increased net new assets of EUR 846 million in Q3 2020 (Q2 2020: EUR 7 million). The net inflows were driven by Illiquid Alternatives - based in particular on continued demand for DWS Grundbesitz real estate funds family - and Liquid Alternatives. Adjusted costs decreased by 5 percent quarter-on-quarter to EUR 342 million in Q3 2020 due to lower compensation & benefits costs (Q2 2020: EUR 362 million; Q3 2019: EUR 389 million). Our management focus on efficiency and cost measures continued to pay off: Adjusted costs in the first nine months of the year were reduced by 12 percent year-on-year to EUR 1,049 million (9M 2019: EUR 1,194 million), driven by a 13 percent decrease in general & administrative expenses and a 10 percent decline in compensation & benefits costs.The adjusted Cost-Income Ratio (CIR) improved by 4.4 percentage points to 61.4 percent in the third quarter 2020 (Q2 2020: 65.7 percent; Q3 2019: 69.6 percent). The adjusted CIR improved year-on-year by 5.9 percentage points to 64.3 percent in the first nine months of the year (9M 2019: 70.1 percent). With this, we expect to achieve our medium-term target of below 65 percent ahead of schedule.Growth Initiatives and Strategic ProgressIn the third quarter we worked intensively on the implementation of our new globally integrated structure. The substructures and their new management teams have now been announced. Furthermore, we have intensified our focus on product innovation. Our newly dedicated Product Division and our Group Sustainability Office will be key to ensuring that DWS is able to identify, develop and meet the investment solutions and needs of our clients in the new normal and beyond.In addition, we continued to strengthen our strategic partnerships. We extended our strategic partnership with Zurich early by 10 years until the year 2032. With this, we will continue our successful cooperation in fund sales and in the development of unit-linked insurance products. In Italy, we have extended our partnership with local insurer Eurovita to leverage our collective distribution capabilities and create innovative products in the unit-linked and life insurance spaces, designed to meet growing investor demand for thematic and ESG funds. Moreover, we announced a smaller strategic partnership with Northwestern Mutual's private markets division, further broadening our investment platform. Together we will identify and develop private market opportunities.Our sustainability efforts continue to win external recognition. In the third quarter FTSE Russell confirmed that DWS is among the companies listed in its FTSE4Good Index Series - a leading market tool designed to help investors looking to invest in companies that demonstrate good sustainability practices measured against globally recognized standards. Furthermore, for the third year in a row, DWS has received an A+ rating - which is the highest awarded - for Strategy & Governance in the annual Principles for Responsible Investment (PRI) assessment.OutlookFor the third quarter in a row we have been able to manage our adjusted Cost-Income Ratio around 65 percent. Therefore, we expect to reach our overall medium-term target of an adjusted Cost-Income Ratio of below 65 percent this year on a sustainable basis. With the achievement of this important milestone, we would reach the key performance indicator we set ourselves during the IPO one year earlier than originally planned. Going forward, we will set our sights for the long-term: We will focus on growth - organic and inorganic - and further transformation into a fully-fledged asset manager while managing our Cost-Income Ratio at least at the already achieved levels. In order to enable growth, we will invest in our platform, our products, mega trends and people.In organizational terms, we already set the course at the end of the second quarter with the announcement of our globally integrated structure, which we have worked hard to implement over the summer, thus laying the foundations for our new course. In addition, we will progress more and more towards a fully-fledged asset management friendly framework. We will also further our people strategy. While we implement the new functional role framework, replacing corporate titles and hierarchical thinking, we will also concentrate on pay for performance. With all this ongoing strategic progress and while we continue to manage the fallout of COVID-19 as a fiduciary and a corporate, we will accelerate the process of defining our long-term strategy towards 2030, and targets for the medium and long term.Contact details for further informationMedia Relations                                                      Investor RelationsAdib Sisani                                                                Oliver Flade+49 69 910 61960                                                     +49 69 910 63072adib.sisani@dws.com                                               oliver.flade@dws.comKarsten Swoboda                                                     Jana Zubatenko+49 69 910 14941                                                     +49 69 910 33834karsten.swoboda@dws.com                                    jana.zubatenko@dws.comWebcast/CallAsoka Woehrmann, Chief Executive Officer, and Claire Peel, Chief Financial Officer, will elaborate on the results in an investor and analyst call on 28 October 2020 at 10am CET. The analyst webcast/call will be held in English and broadcasted on https://group.dws.com/ir/reports-and-events/financial-results/. It will also be available for replay. Further details will be provided under https://group.dws.com/ir/.About DWS GroupDWS Group (DWS) is one of the world's leading asset managers with EUR 759bn of assets under management (as of 30 September 2020). Building on more than 60 years of experience, it has a reputation for excellence in Germany, Europe, the Americas and Asia. DWS is recognized by clients globally as a trusted source for integrated investment solutions, stability and innovation across a full spectrum of investment disciplines.We offer individuals and institutions access to our strong investment capabilities across all major asset classes and solutions aligned to growth trends. Our diverse expertise in Active, Passive and Alternatives asset management - as well as our deep environmental, social and governance focus - complement each other when creating targeted solutions for our clients. Our expertise and on-the-ground-knowledge of our economists, research analysts and investment professionals are brought together in one consistent global CIO View, which guides our investment approach strategically.DWS wants to innovate and shape the future of investing: with approximately 3,400 employees in offices all over the world, we are local while being one global team. We are investors - entrusted to build the best foundation for our clients' future.Important NoteThis release contains forward-looking statements. Forward-looking statements are statements that are not historical facts; they include statements about our beliefs and expectations and the assumptions underlying them. These statements are based on plans, estimates and projections as they are currently available to the management of DWS Group GmbH & Co. KGaA. Forward-looking statements therefore speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events.By their very nature, forward-looking statements involve risks and uncertainties. A number of important factors could therefore cause actual results to differ materially from those contained in any forward-looking statement. Such factors include the conditions in the financial markets in Germany, in Europe, in the United States and elsewhere from which we derive a substantial portion of our revenues and in which we hold a substantial portion of our assets, the development of asset prices and market volatility, the implementation of our strategic initiatives, the reliability of our risk management policies, procedures and methods, and other risks.This document contains alternative performance measures (APMs). For a description of these APMs, please refer to the Annual Report, which is available at https://group.dws.com/ir/reports-and-events/annual-report/. 28.10.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de Language: English Company: DWS Group GmbH & Co. KGaA Mainzer Landstaße 11-17 60329 Frankfurt/Main Germany Phone: +49 (0) 69 910 14700 Fax: +49 (0) 69 910 32223 E-mail: investor.relations@dws.com Internet: https://group.dws.com/de/ir/ ISIN: DE000DWS1007 WKN: DWS100 Indices: SDAX Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange EQS News ID: 1143452   End of News DGAP News Service

  • EQS Group

    DWS Q2: Results Underscore Strength of Business

    DGAP-News: DWS Group GmbH & Co. KGaA / Key word(s): Half Year Results/Quarter Results 29.07.2020 / 07:02 The issuer is solely responsible for the content of this announcement. * Net flows of EUR 8.7bn in Q2 resulting in EUR 6.2bn in the first half of 2020 (Q1 2020: minus EUR 2.5bn; ex Cash EUR 2.4bn in Q2 2020, minus EUR 6.1bn in Q1 2020) * Adjusted costs at EUR 362m, up by EUR 18m q-o-q due to higher compensation linked to the increased DWS share price; EUR 707m in H1 2020, reduced by 12 percent y-o-y * Adjusted Cost-Income Ratio (CIR) further improved to 65.7 percent in Q2 (Q1 2020: 65.8 percent) - close to mid-term target; H1 2020: 65.8 percent, reduced by 4.6 ppt y-o-y * Adjusted profit before tax increased by 5 percent to EUR 189m in Q2 (Q1 2020: EUR 179m); H1 2020: EUR 368m, increased by 9 percent y-o-y * Total revenues up 5 percent to EUR 551m in Q2 (Q1 2020: EUR 524m); in H1 2020 total revenues at EUR 1,074m, down 6 percent y-o-y burdened by the pandemic among other things * AuM increased to EUR 745bn in Q2 (Q1 2020: EUR 700bn) due to partially recovered markets and net inflows Business Development In the second quarter under the impact of the Corona crisis, DWS once again proved its resilience. Despite the difficult conditions at the beginning of the second quarter revenues increased by 5 percent quarter-on-quarter. Thanks to our diversified and client-centric business across all liquid and illiquid asset classes, we were able to achieve positive net flows of EUR 8.7 billion in the second quarter. Assets under management also increased by EUR 45 billion to EUR 745 billion. Our management focus on efficiency and cost measures continued to pay off, with our adjusted cost base declining significantly year-on-year in the first half of 2020. We also remain well on track to achieve our gross cost savings objective of EUR 150 million by 2021. The adjusted Cost-Income Ratio improved further and is already close to our medium-term target ratio of below 65 percent. Adjusted profit before tax was up 5 percent quarter-on-quarter and increased by 9 percent year-on-year in the first six months of 2020. In terms of business developments, Coronavirus continued to impact day-to-day activities in the second quarter, but as a firm, we remained fully committed to executing our strategic priorities as outlined consistently since late 2018. Accordingly, we have made organizational changes to ensure that we remain client-centric, flexible, efficient and effective in the future. Total revenues increased quarter-on-quarter by 5 percent to EUR 551 million in Q2 2020 (Q1 2020: EUR 524 million; Q2 2019: EUR 608 million). Performance fees increased slightly, and fair value of guarantees saw a favorable change; while management fees and other recurring revenues, as expected, decreased as a result of lower average Assets under Management during the quarter. Total revenues were EUR 1,074 million in the first half of 2020 (H1 2019: EUR 1,142 million). This 6 percent decrease year-on-year was due mainly to the impact of the pandemic and the absence of the non-recurring Alternatives fund performance fee recorded in Q2 2019. Adjusted profit before tax increased by 5 percent quarter-on-quarter to EUR 189 million (Q1 2020: EUR 179 million; Q2 2019: EUR 185 million). After tax, DWS posted a quarter-on-quarter stable net income of EUR 122 million for the second quarter 2020 (Q1 2020: EUR 121 million; Q2 2019: EUR 112 million). Adjusted profit before tax for the first half of 2020 increased by 9 percent year-on-year to EUR 368 million (H1 2019: EUR 338 million). Net income rose in the first half year of 2020 year-on-year by 13 percent to EUR 243 million (H1 2019: EUR 214 million). Assets under Management (AuM) increased to EUR 745 billion in the second quarter of 2020 (Q1 2020: EUR 700 billion). This was driven by the market recovery and positive net flows, while exchange rate movements had a negative impact on our AuM. We successfully generated positive net flows of EUR 8.7 billion in the second quarter of 2020 (ex Cash: EUR 2.4 billion), achieving total net inflows of EUR 6.2 billion in the first six months of 2020. Based on their strong performance, ESG-dedicated funds accounted for over 50 percent of the flows in the first half of the year. The strong inflows in the second quarter were primarily driven by Passive (EUR 6.5 billion) and Cash products (EUR 6.3 billion), which more than offset outflows from Active (ex Cash) (minus EUR 4.1 billion), which suffered from redemptions by a very few institutional Fixed Income investors. Alternatives recorded only very small net inflows as inflows into illiquid asset classes just overcompensated the outflows from liquid asset classes. High-margin Active Equity was again able to generate positive net flows. Cash products were used by institutional investors as a safe haven for their portfolios. Active Asset Management ex Cash recorded lower net outflows of minus EUR 4.1 billion in the second quarter (Q1 2020: minus EUR 5.6 billion). In the sub asset classes, the trends of the first quarter largely continued. While Active Equity with many flagship products was again able to generate significant net flows of EUR 1.0 billion, the other active product classes were still unable to avoid outflows as a result of the impact of the pandemic on market sentiment. Active Multi Asset saw lower outflows of minus EUR 0.6 billion in total - while flagship funds DWS Concept Kaldemorgen and DWS Dynamic Opportunities once again defied the trend and generated further inflows, these were offset by a single institutional redemption. Active SQI recorded smaller net outflows of minus EUR 0.2 billion and Active Fixed Income saw reduced outflows of minus EUR 4.4 billion driven by redemptions from single large institutional mandates. Cash products recorded net new assets of EUR 6.3 billion. Passive Asset Management generated net flows of EUR 6.5 billion in Q2 2020 (Q1 2020: minus EUR 2.0 billion). The very strong flow momentum was driven by net flows into ETPs (exchange-traded funds and commodities) and was supported by positive net inflows from institutional mandates. DWS ranked second in ETP net flows in Europe with a 17 percent flow market share according to ETFGI. Alternatives saw only very small net new assets of EUR 7 million in the second quarter (Q1 2020: EUR 1.5 billion). While Illiquid Alternatives had ongoing net inflows based in particular on continued demand for DWS Grundbesitz real estate funds family and infrastructure funds, Liquid Alternatives recorded net outflows. Adjusted costs increased by 5 percent quarter-on-quarter to EUR 362 million in Q2 2020 as share-based compensation rose with the increase in the DWS share price over the quarter (Q1 2020: EUR 345 million; Q2 2019: EUR 423 million). Our management focus on efficiency and cost measures continued to pay off: Adjusted costs in the first half of the year were reduced by 12 percent year-on-year to EUR 707 million (H1 2019: EUR 804 million). We significantly lowered both compensation & benefits costs and general & administrative expenses. The adjusted Cost-Income Ratio (CIR) improved to 65.7 percent in the second quarter 2020 (Q1 2020: 65.8 percent; Q2 2019: 69.5 percent) - close to our target of below 65 percent for a second quarter in a row and ahead of schedule. The adjusted CIR improved year-on-year by 4.6 percentage points to 65.8 percent in the first half of the year (H1 2019: 70.4 percent). Growth Initiatives and Strategic Progress In the first quarter, we had to respond quickly, decisively and responsibly to the pandemic, making the health and safety of our employees a top priority. This did not change in the second quarter, but we took bigger and more fundamental steps to make sure that DWS will remain resilient and successful in the future. We simplified our global business structure to become even more client-centric, flexible, efficient and effective, ensuring we remain committed to our most important responsibilities as a fiduciary asset manager: strong investment performance, best-in-class client services and product innovation. We also made progress to build out strategic areas of growth, combining and strengthening our Passive and SQI units as well as appointing Bjoern Jesch as Global Head of Multi-Asset & Solutions. In addition, we are continuing to implement and execute our ESG strategy more intensely. We appointed Desiree Fixler as our Group Sustainability Officer (GSO) marking another significant milestone in our path towards industry leadership in sustainability. The newly created GSO role is designed to ensure we implement an ESG strategy that is consistent across all regions, and fully aligns with our duties both as a fiduciary and as a corporate. Furthermore, we strengthened our stewardship practices by introducing "Smart Integration", a pioneering approach to ESG integration that goes beyond previous industry standards. Using our proprietary ESG Engine, we leverage best-in-class research data and artificial intelligence to identify potential portfolio risks in our investment platform, primarily companies with high climate transition risks and those that violate international norms. Outlook We are reiterating our dividend proposal of EUR 1.67 per share for 2019, still subject to approval by the Annual General Meeting (AGM). The AGM, originally planned for June 18, 2020, and moved because of the pandemic, will now take place in a virtual format on November 18, 2020. This year, we will continue to increase our efficiency and will intensify our efforts to achieve operational and organizational efficiency in order to achieve EUR 150 million of additional gross cost savings by 2021 - and more if necessary: The firm's management is able and committed to identify and realize further savings potential if the revenue situation should make this necessary in the further course of the year. As the pandemic continues, we expect adjusted revenues and costs to both be below 2019 figures. However, the firm's management will do everything in its power to manage our fiduciary duty responsibly, and will continue to pursue our cost efficiency and long-term growth strategies. With our diversified business, our strategic partnerships and our focus on efficiency and ESG we feel well positioned to navigate securely through the crisis. As the current environment reinforces mega-trends, our diversified platform across all asset classes allows for the utilization of a barbell strategy with a focus on our previously defined growth areas. We also see continued momentum for ESG both in the short and the long run, as well as an accelerated use of digital tools - two areas in which we are investing substantially. In addition, we want to further develop our existing strategic partnerships, especially in Asia. And of course we are aware of the possible first-mover advantages for additional partnerships, joint ventures and bolt-on acquisitions. Within the firm, we will further build on our new globally integrated structure, whereby further removing silos, and by improving our client-centricity and product management through the entire life-cycle. We will continue to work on creating a leading fiduciary asset manager with a clear performance-driven culture, with entrepreneurship and collaboration across its global platform. We did not take the decision to introduce the new global structure in order to save costs, nor was it triggered by COVID-19. Our aim is rather to have the right structure for the challenges that lie ahead. We want to be able to react more flexibly and quickly to growth opportunities as well as to the changing asset management industry and the trends pushing it out of the comfort zone. Contact details for further information Media Relations Investor Relations Adib Sisani Oliver Flade +49 69 910 61960 +49 69 910 63072 adib.sisani@dws.com oliver.flade@dws.com Karsten Swoboda Jana Zubatenko +49 69 910 14941 +49 69 910 33834 karsten.swoboda@dws.com jana.zubatenko@dws.com Webcast/Call Asoka Woehrmann, Chief Executive Officer, and Claire Peel, Chief Financial Officer, will elaborate on the results in an investor and analyst call on 29 July 2020 at 10am CEST. The analyst webcast/call will be held in English and broadcasted on https://group.dws.com/ir/reports-and-events/financial-results/. It will also be available for replay. Further details will be provided under https://group.dws.com/ir/. About DWS Group DWS Group (DWS) is one of the world's leading asset managers with EUR 745bn of assets under management (as of 30 June 2020). Building on more than 60 years of experience and a reputation for excellence in Germany and across Europe, DWS has come to be recognized by clients globally as a trusted source for integrated investment solutions, stability and innovation across a full spectrum of investment disciplines. We offer individuals and institutions access to our strong investment capabilities across all major asset classes and solutions aligned to growth trends. Our diverse expertise in Active, Passive and Alternatives asset management - as well as our deep environmental, social and governance focus - complement each other when creating targeted solutions for our clients. Our expertise and on-the-ground-knowledge of our economists, research analysts and investment professionals are brought together in one consistent global CIO View, which guides our investment approach strategically. DWS wants to innovate and shape the future of investing: with approximately 3,500 employees in offices all over the world, we are local while being one global team. We are investors - entrusted to build the best foundation for our clients' future. Important Note This release contains forward-looking statements. Forward-looking statements are statements that are not historical facts; they include statements about our beliefs and expectations and the assumptions underlying them. These statements are based on plans, estimates and projections as they are currently available to the management of DWS Group GmbH & Co. KGaA. Forward-looking statements therefore speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events. By their very nature, forward-looking statements involve risks and uncertainties. A number of important factors could therefore cause actual results to differ materially from those contained in any forward-looking statement. Such factors include the conditions in the financial markets in Germany, in Europe, in the United States and elsewhere from which we derive a substantial portion of our revenues and in which we hold a substantial portion of our assets, the development of asset prices and market volatility, the implementation of our strategic initiatives, the reliability of our risk management policies, procedures and methods, and other risks. This document contains alternative performance measures (APMs). For a description of these APMs, please refer to the Annual Report, which is available at https://group.dws.com/ir/reports-and-events/annual-report/. * * *29.07.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de * * * Language: English Company: DWS Group GmbH & Co. KGaA Mainzer Landstaße 11-17 60329 Frankfurt/Main Germany Phone: +49 (0) 69 910 14700 Fax: +49 (0) 69 910 32223 E-mail: investor.relations@dws.com Internet: https://group.dws.com/de/ir/ ISIN: DE000DWS1007 WKN: DWS100 Indices: SDAX Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange EQS News ID: 1104469 End of News DGAP News Service