Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Non-Deal Roadshow (June 2012)
51 slides from Deutsche Bank's roadshow presentation, Jun 26, 2012
Slide 1: Sustainability at Deutsche Bank
Deutsche Bank Sustainability at Deutsche Bank Dr. Sabine Miltner Group Sustainability Officer Dr. Julia Dieckmann Senior Investor Relations Manager Deutsche Bank Sustainability at Deutsche Bank Investor Relations 06/2012 Dr. Miltner, Dr. Dieckmann Boston and New York, 26- 26-27 June 2012
Slide 2: Agenda
Agenda 1 Financial overview and sustainability approach 2 Economics and Corporate Governance 3 Environment 4 Society Deutsche Bank Sustainability at Deutsche Bank 1 Investor Relations 06/2012 Dr. Miltner, Dr. Dieckmann
Slide 3: Overview
Overview 1Q2012 1Q2011 Income before income taxes (in EUR bn) 1.9 3.0 Net income (in EUR bn) 1.4 2.1 Profitability Pre-tax RoE (target definition)(1) 14% 22% Diluted EPS (in EUR) 1.44 2.13 31 Mar 2012 31 Dec 2011 Core Tier 1 capital ratio 10.0% 9.5% Capital Tier 1 capital ratio 13.4% 12.9% Core Tier
Slide 4: Deutsche Bank's sustainability approach
Deutsche Bank’s sustainability approach — Corporate governance — Transparency — Accountability — Economic performance — Stakeholder value — Competitiveness Economics — Risk management — Consumer protection — Climate protection — Impact investment — Resource efficiency — Public policy and advocacy —
Slide 5: Key sustainability accomplishments in 2011
Key sustainability accomplishments in 2011 — Expansion of Deutsche Bank’s risk management framework — Development & implementation of Cluster Munitions Policy — Sustainable funds and thematic funds of DWS Investments and DB Advisors with a total of EUR 2.5 bn (end of 2011) E — New transparency on ma
Slide 6: Governance of Deutsche Bank's sustainability management
Governance of Deutsche Bank’s sustainability management Certified under ISO 14001 Deutsche Bank Sustainability at Deutsche Bank 5 Investor Relations 06/2012 Dr. Miltner, Dr. Dieckmann
Slide 7: Agenda
Agenda 1 Financial overview and sustainability approach 2 Economics and Corporate Governance 3 Environment 4 Society Deutsche Bank Sustainability at Deutsche Bank 6 Investor Relations 06/2012 Dr. Miltner, Dr. Dieckmann
Slide 8: Compensation update
Compensation update — German Institutsvergütungsverordnung (InstVV) remained unchanged — Sound review of regulations applicable for our US operations was performed Regulations — Concerns re uneven level playing field to overseas regulations still remain valid but also inconsistencies within Europe h
Slide 9: Compensation management
Compensation management Reduction of compensation ratio Variable pay down / revenues up Compensation expenses / net revenues Incentive awards (variable remuneration)(1) ∆ 1.5 ppt (17)% 2011 vs. 41.0%(2) 2010 39.5% Deferred 5%(3) Cash (37)% 2010 2011 2010 2011 Group (1) Excludes amortization of prior
Slide 10: Management Board: Compensation structure (1/2)
Management Board: Compensation structure (1/2) Split / structure of variable compensation — The compensation system takes all applicable statutory and regulatory requirements into account and focuses on ensuring a close link between the Variable Compensation interests of the Management Board members
Slide 11: Management Board: Compensation structure (2/2)
Management Board: Compensation structure (2/2) All compensation components which are granted deferred or spread out over several years are subject to certain forfeiture condition and make an essential contribution to the long-term nature of the compensation Timeframe for disbursement or delivery and
Slide 12: The key functions of Deutsche Bank's compliance processes
The key functions of Deutsche Bank’s compliance processes ~ 530 Compliance staff worldwide(1) High level of compliance education(2) — Providing advisory support to business on applicable laws, rules and regulations 416,381 — Codifying and communicating global and local compliance principles, standar
Slide 13: Risk escalation process
Risk escalation process Group Reputational Risk Committee Regular Meetings Discussion of escalated reputational risk issues Final decision of transaction Escalation, if reputational risk issue is not resolved Regional/Divisional Review (otherwise normal approval Discussion of escalated reputational
Slide 14: Environmental and Social Risk Framework: Overview
Environmental and Social Risk Framework: Overview The Framework, approved by the Group Reputational Risk Committee (GRRC) mid 2011, operationalizes the Reputational Risk Management Program Policy. The Framework includes a Guidance Note which further assists in identifying reputational risks that
Slide 15: Environmental and Social Risk Framework: Process
Environmental and Social Risk Framework: Process All transactions: Any indication for Environmental or Social risks? no yes Process according to DB Group E&S Reputational Risk Framework Categorization Low Medium High Group risk risk risk Sustainability offers support throughout the transaction Proce
Slide 16: Credit Directives – core principles for our banking business
Credit Directives – core principles for our banking business Defense equipment “We will not consider any involvement in transactions connected with specific types of weapons, in particular antipersonnel landmines, cluster bombs or ABC weapons.”… Pornography/“Red Light Area” “Deutsche Bank will not e
Slide 17: Environmental and Social Risk Framework: Facts & Figures
Environmental and Social Risk Framework: Facts & Figures # of transactions escalated 2009 2010 2011 to regional / divisional committees 85 100% 93 100% 96 100% — thereof with environmental and social issues(1) 9 11% 11 12% 9 9% to Group Reputational Risk Committee 4 4.7% 5 5.4% 3 3.1% — thereof with
Slide 18: Agribusiness
Stakeholder dialogue on key challenges 2011 and 2012 “We will not do business with companies which produce the bombs. We will not do Cluster munitions business with companies which produce key components. Nor will we do business with groups where the contribution of cluster munitions to the group is
Slide 19: Cluster Munitions Policy established in 2011
Cluster Munitions Policy established in 2011 — Guidance on the practical implementation of Board decision to exit relationships and not to engage in new business with cluster munitions manufacturers, distributors and companies that produce key components of cluster munitions — Business relations wit
Slide 20: Sustainability at Corporate & Investment Bank (1/2)
Sustainability at Corporate & Investment Bank (1/2) Renewable energy market — Deutsche Bank considers the renewable energy market as having — Best renewable Energy considerable business potential Finance House – — Prospects are positive despite setbacks and uncertainty Europe by Environmental Financ
Slide 21: Sustainability at Corporate & Investment Bank (2/2)
Sustainability at Corporate & Investment Bank (2/2) Selected renewable and cleantech deals and transactions Renewable energy and clean technology transactions Corporate & Investment Bank (Volume in EUR m) 2009 2010 2011 Public Merger & Acquisition 446 225 5,435 transactions(1) (2) Equity and debt is
Slide 22: Sustainability at Private & Business Clients (1/2)
Sustainability at Private & Business Clients (1/2) Sustainability products & barrier-free branches and ATMs Sustainable & “green” products Private & Business Clients Volume in EUR m 2009 2010 2011 Loans KfW loans granted to PBC clients in Germany 1,214 1,578 1,168 KfW green loans granted to private
Slide 23: Sustainability at Private and Business Clients (2/2)
Sustainability at Private and Business Clients (2/2) Customer loyalty & client protection — Award for best advisory service in branches — Award for “Best investment consulting” by €uro Am Sonntag (on Sunday) Client protection Responsible Banking Codex for retail banking products — Measures to contin
Slide 24: Sustainability at Asset Management
Sustainability at Asset Management — Globally more than 20 people in various teams, asset classes and research roles involved in sustainability products — Policies/Collaborations/Initiatives — Signatory of the UN Principles of Responsible Investing (UN PRI) since 2008 — DWS/DeAM ESG Directive for Po
Slide 25: Agenda
Agenda 1 Financial overview and sustainability approach 2 Economics and Corporate Governance 3 Environment 4 Society Deutsche Bank Sustainability at Deutsche Bank 24 Investor Relations 06/2012 Dr. Miltner, Dr. Dieckmann
Slide 26: Deutsche Bank's climate strategy
Deutsche Bank’s climate strategy Carbon neutral from 2013 onwards Business in clean and green energy National and international policy dialogue Deutsche Bank Sustainability at Deutsche Bank 25 Investor Relations 06/2012 Dr. Miltner, Dr. Dieckmann
Slide 27: Areas of focus of the Environmental Steering Committee & Climate Change Advisory Board
Areas of focus of the Environmental Steering Committee & the Climate Change Advisory Board Environmental Steering Committee Climate Change Advisory Board Coordination of bank wide business and strategy May 2011 approaches — Future of nuclear energy — Business implications of the new 5-year plan in C
Slide 28: Strategic initiative GET FiT
Strategic initiative GET FiT Facilitate private sector investments in renewable energy in developing countries From research to realization Energy as driver of development — Concept presented for the first time in spring 2010 — Strong interest from public sector stakeholders and influence on interna
Slide 29: Agenda
Agenda 1 Financial overview and sustainability approach 2 Economics and Corporate Governance 3 Environment 4 Society Deutsche Bank Sustainability at Deutsche Bank 28 Investor Relations 06/2012 Dr. Miltner, Dr. Dieckmann
Slide 30: Deutsche Bank as an employer (1/3)
Deutsche Bank as an employer (1/3) Number of employees Regional deployment of staff Full-time equivalents at year's end In % at year's end Europe (excl. Germany, Asia Pacific Middle East, Africa) Americas Germany 102,062 100,996 21.4 17.4 18.3 77,053 11.0 11.0 14.5 23.3 23.8 28.6 48.3 46.9 35.5 2009
Slide 31: Deutsche Bank as an employer (2/3)
Deutsche Bank as an employer (2/3) Employee age distribution Qualification of our employees In % at year's end excluding Deutsche Postbank In % at year's end Other school degrees excluding Deutsche Postbank High school certificate Up to 24 25–34 35–44 45–54 Over 54 University degree 5.4 8.7 63.5 63.
Slide 32: Deutsche Bank as an employer (3/3)
Deutsche Bank as an employer (3/3) Employees leaving the Training expenses Apprentices in Germany bank for a new job In EUR m In thousands In % 122 6.6 2.3 2.2 100 5.6 86 4.8 1.4 2009 2010 2011 2009 2010 2011 2009 2010 2011 Note: Without Deutsche Postbank Deutsche Bank Sustainability at Deutsche Ban
Slide 33: Employee commitment
Employee commitment Commitment is the overall bond between employees and the organisation they work in. In detail, commitment comprises three main elements: the emotional attachment to the Bank (identification), the willingness to go the ‘extra mile’ for the Bank (engagement) and the expectation to
Slide 34: Diversity at Deutsche Bank
Diversity at Deutsche Bank Target: Increase percentage of women in Total percentage of women, in % management positions — Deutsche Bank Group committed itself to increase 41.9 41.3 41.2 the worldwide proportion of its female senior executives at the Managing Director and Director levels to 25 percen
Slide 35: Deutsche among top 10% in sustainability ratings
Deutsche among top 10% in sustainability ratings Sustainalytics(1) SAM(2) Total score: 66; Ranking: 8 out of 92 Rating of 100+ banks worldwide. Deutsche Bank is among the top 10% Deutsche Bank , Industry average Deutsche Bank , Industry average (1) Source: Sustainalytics, Sep 2011 (2) Source: SAM Re
Slide 36: Additional information
Deutsche Bank Additional information Deutsche Bank Sustainability at Deutsche Bank Investor Relations 06/2012 Dr. Miltner, Dr. Dieckmann
Slide 37: The new Deutsche Bank leadership team
The new Deutsche Bank leadership team Group Executive Committee Management Board Jürgen Fitschen Stefan Krause Co-Chairman of the Gunit Chadha Colin Grassie Chief Financial Officer Management Board and Co-CEO Asia Pacific CEO UK (CFO) GEC Stephan Leithner Anshu Jain CEO Europe (ex. Germany Alan Cloe
Slide 38: Function of the Supervisory Board and Management Board
Function of the Supervisory Board and Management Board Supervisory Board (20 members): Chairman’s Committee, Mediation Committee, Risk Committee, Audit Committee, Nomination Committee — Appoints, supervises, and advises the Management Board — Is directly involved in decisions of fundamental importan
Slide 39: Members of Deutsche Bank's Supervisory Board
Members of Deutsche Bank’s Supervisory Board Member Principal Occupation Dr. Paul Achleitner Chairman of the Supervisory Board of Deutsche Bank AG Dr. Karl-Gerhard Eick Management Consultant, KGE Asset Management & Consulting Ltd. Katherine Garrett-Cox Chief Executive Officer, Alliance Trust PLC Pro
Slide 40: Compensation Governance structure enhancements
Compensation Governance structure enhancements DB has further enhanced its existing Global Reward Governance Structure to ensure even better oversight and control for all compensation structures and practices on a group-wide basis. Core processes have been strengthened to align with the new European
Slide 41: Compensation Structures
DB Group 2011 Compensation Structures & Clawback Provisions (A) InstVV Employees (B) All Other Employees with Deferred Awards Upfront Award VTE VTE Compensation Structures — 50% Cash Upfront Award — 50% Equity Upfront Award — 100% Cash — (6 month holding period and service requirement) Upfront Defer
Slide 42: Environmental Steering Committee and Climate Change Advisory Board
Environmental Steering Committee and Climate Change Advisory Board Environmental Steering Members: Corporate & Investment Bank, Asset Management, Private Wealth Committee Chair: Management, Private & Business Clients, Communications, Compliance, Corporate Caio Koch-Weser Development/Corporate Invest
Slide 43: Holistic risk management approach
Holistic risk management approach External commitments Internal guidelines — UN Global Compact Corporate Governance/Human Resources — UNEP-FI Declaration of Environmental — Code of Business Conduct and Ethics Sustainable Development aspects Sustainability — UN Declaration of Human Rights — Policies
Slide 44: Carbon neutrality achievements
Carbon neutrality achievements — Incentivised greater than expected energy savings, helping to reduce the cost of the carbon neutral commitment. — EUR 16.9 million in energy cost savings between 2008 and end of 2012. Savings are ongoing and represent a 20% return on investment — Created an essential
Slide 45: Greentowers – benchmark for future projects
Greentowers – benchmark for future projects In the course of Europe’s most comprehensive reconstruction project, Deutsche Bank’s towers in Frankfurt, Germany, are one of the most environmentally friendly high-rise buildings in the world. CO2 emissions reduction: LEED Certificate 89 % We achieved the
Slide 46: Desertec – DB as founding member of the Desertec Industrial Initiative (Dii)
Desertec – DB as founding member of the Desertec Industrial Initiative (Dii) The Desertec vision Key Facts — Created in November 2009 – DB as founding member — Today, Dii has 19 shareholders and more than 30 associated partners from 14 countries in Europe an MENA — Substantial increase in public awa
Slide 47: Human and labor rights
Human and labor rights Human rights — International guidelines (e.g. the World Bank Standards, the OECD Principles for Multinational Enterprises, the UN Global Compact Principles) are applied in our business — Deutsche Bank’s Code of Conduct requires to maintain equal opportunities by not discrimina
Slide 48: Deutsche is listed in most important ESG/SRI indices
Deutsche is listed in most important ESG/SRI indices Indices Listed since Indices Listed since Sustainalytics ECPI Stoxx ESG Leaders 2001 ECPI 2002 ECPI Ethical Index 2006 SAM DJSI World 1999 - 2011 DJSI STOXX 2006 - 2009 FTSE DJSI Europe 2010 - 2011 FTSE4GOOD 2001 Bank Sarasin Europe Index (EUR) DA
Slide 49: Microcredits – from philanthropy to the business case
Microcredits – from philanthropy to the business case Via Deutsche Bank approximately USD 215 m have been channeled to more than 119 microfinance institutions in more than 50 countries in the past fifteen years. Result: aggregate loan volume of USD 1.25 bn has been granted to 2.76 m borrowers so far
Slide 50: Global social responsibility investments
Global social responsibility investments With a total investment of over 83 million € in 2011, Deutsche Bank and its foundations were among the world’s most active corporate citizens. Investments by area of activity Regional split of investments EUR 83.1 m in total EUR 83.1 m in total Social Investm
Slide 51: Cautionary statements
Cautionary statements This presentation 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 pro