Deutsche BÃ¶rse anticipates that this move will lead to a further reduction in its tax rate. The relocation, along with the takeover of International Securities Exchange ISE and the effects of the corporate tax reform in Germany, are expected to result in a tax rate of between 25 and 27 percent in 2010. The company expects to achieve a tax rate of under 30 percent already for 2008, compared with the previous estimate of 31 to 33 percent.
As a result, Deutsche BÃ¶rse will be able to achieve a significant improvement in future earnings despite the costs incurred particularly in connection with the relocations and the planning work for the new building.
âThe reduction in the tax rate constitutes a further structural measure aimed at strengthening our international competitiveness. It is part of a strategy to improve our market position, which has already optimized our capital structure and improved our cost efficiency. This optimization goes hand in hand with the obvious advantages a new cutting-edge building can offer staffâ, said CEO Reto Francioni.
The lease agreement for the current office building in the Hausen district of Frankfurt, which Deutsche BÃ¶rse has occupied since 2000, will expire in 2010. The new building will be tailored to the needs of Deutsche BÃ¶rse. It is to meet the latest building and information technology requirements and be decidedly more energy-efficient than the old building. Overall, the new improved building will thus lead to a reduction in building occupancy costs from 2010. The initial plans for the new building are already on the drawing board.
Deutsche BÃ¶rse Group has around 3000 staff worldwide, the majority of whom are based in Germany and Luxembourg. Other key locations are Chicago, London, New York and Zurich. The Group also has representative offices in Hong Kong, Moscow, Paris, Singapore and Tokyo, and plans to open a representative office in Beijing.