Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Non-Deal Roadshow (October 2008)
25 slides from Deutsche Bank's roadshow presentation, Oct 2, 2008
Slide 1: Deutsche Bank – Dr. Josef Ackermann, Zurich, 2 October 2008
D t h B Deutsche Bank k Dr. Josef Ackermann Chief Executive Officer Zurich, 2 October 2008
Slide 2: Agenda
Agenda 1 The credit crisis: Current status 2 Deutsche Bank: Strength in challenging conditions 3 Furthering our strategy: Deutsche Postbank 4 Strategy: Continuing to play to our strengths Investor Relations 10/08 · 2
Slide 3: Turmoil continues …
Turmoil continues … Phase 1: Phase 2: Phase 3: Phase 4: Phase 5: Phase 6: Phase 7: Phase 8: Credit crisis Knock-on Spill-over to Interim recovery More write-downs, Monoliners, de- Tentative recovery Banking industry starts in the sub- sub effects on interbank as Fed starts coordinated central levera
Slide 4: … but mark-downs are coming down
… but mark-downs are coming down Reported mark-downs (net)(1) Total reported mark-downs(1) In EUR bn In % of In EUR bn shareholders’ equity pre-crisis(2) MER (3) 31.1 110 53.7 UBS(3) 29 1 29.1 92 LEH(4) 10.1 73 40.1 (4) MS 10.7 35 C (3) 28.6 33 SOC (3) 9.0 30 CS (3) 5.6 21 22.5 19.6 (3) 7.1 20 GS (4
Slide 5: Significant structural changes in the investment banking landscape
Significant structural changes in the investment banking landscape Status M h 2008 March C Current t status t t Bear Stearns JPMorgan Chase Merrill Lynch Bank of America Lehman Brothers Goldman Sachs Morgan Stanley Acquired by Filed for chapter 11 Converted to Bank Holding Company Investor Relations
Slide 6: Credit crisis results in a 'flight to quality'
Credit crisis results in a ‘flight flight to quality quality’ “‘Flight to quality’ in prime brokerage as hedge funds shift assets to the most financially stable banks.” (Hedge fund managers and market observers, June 2008) “As As well as from the surge in overall bond market volatility the rates bus
Slide 7: Agenda
Agenda 1 The credit crisis: Current status 2 Deutsche Bank: Strength in challenging conditions 3 Furthering our strategy: Deutsche Postbank 4 Strategy: Continuing to play to our strengths Investor Relations 10/08 · 7
Slide 8: Deutsche Bank remains a relative winner through the crisis
Deutsche Bank remains a relative winner through the crisis Aggregate IBIT, 3Q2007-3Q2008, reported, in EUR bn JPM (2) 10.5 GS (1) 10.5 (2) 3.3 MS (1) 1.4 CS (2) 0.1 LEH ((1)) (4 2) (4.2) UBS (2) (18.5) C (2) (18.7) MER (2) (19.8) (1) Diverging fiscal year (2) 3Q2008 results not yet published Note: F
Slide 9: Underlying Investment banking revenues at 70% of 'peak' conditions
Underlying Investment banking revenues at 70% of ‘peak’ peak conditions CB&S revenues, in EUR bn (30)% 11.4 8.0 3.1 (4.9) 1H2007 1H2008 Total mark-downs 1H2008 Reported ‘Pro-forma’ before (net of hedges) Reported mark-downs mark downs Note: Figures may not add up due to rounding differences Investor
Slide 10: We sustained momentum in asset gathering …
We sustained momentum in asset gathering … Net new money Leading asset gatherer 1H2008, EUR bn PCAM invested assets per 30 June 2008, in EUR bn UBS (1) 7 22 MER 898 CS 11 MS (2) JPM GS (3) 4 Citi (2) LEH AM PWM PBC PCAM Asset Management Private Banking and others (1) Total Private Client Assets and
Slide 11: … and 'stable' businesses proved their resilience
… and ‘stable’ stable businesses proved their resilience GTB AWM Income before income taxes PBC 2003 – 2007 Quarterly development In EUR bn In EUR m >2x 3.0 854 835 832 2.6 742 Ø: 751 695 643 1.9 1.6 1.4 2003* 2004 2005 2006 2007 1Q 2Q 3Q 4Q 1Q 2Q * GTB adjusted for gain on sale of GSS 2007 2008 Not
Slide 12: Selected bolt-on acquisitions remain on the agenda
Selected bolt-on acquisitions remain on the agenda Example GTB Strong momentum … … supported through bolt-on acquisitions Income before income taxes (in EUR m) # 4 commercial bank in the Netherlands +15% ~35,000 35 000 corporate t and d SME clients 283 Closing expected in 4Q 2008* 263 247 250
Slide 13: Deutsche Bank: A beneficiary of the 'flight to quality'
Deutsche Bank: A beneficiary of the ‘flight flight to quality quality’ Selected examples PCAM – Strong net new money inflows GM – Market leadership in FX 3Q2007 – 2Q2008 (in EUR bn) Number of monthly transactions 16 52 16 #1 in global FX market 20 Market share of 21.7% AM PWM PBC Total Jan 2006 Jan
Slide 14: Stable capital and strong funding base
Stable capital and strong funding base Tier I ratio Unsecured funding Basel I Basel II In EUR bn 9.2 9.3 511 516 8.8 8.6 9% 84 8.4 Target range 84 8% 153 329 308 311 305 303 Tier I- I 432 358 +74 ratio (in %) RWA (i EUR b (in bn)) 30 Jun 30 Sep 31 Dec 31 Mar 30 Jun 30 Jun 2007 30 Jun 2008 Short-term
Slide 15: Deutsche Bank's relative strength: The market's verdict
Deutsche Bank’s Bank s relative strength: The market’s market s verdict 5-year senior CDS, in bps 1 July y 2007 24 September p 2008 512 349 312 221 230 144 167 113 119 126 35 35 35 18 14 19 13 11 12 10 Credit JPM Bank of Barclays Citi UBS Merrill Goldman Morgan Suisse Chase America y Lynch Sachs Sta
Slide 16: The crisis has validated our business model
The crisis has validated our business model Leading global investment bank with a strong and profitable private clients franchise Powerful and growing Mutually M t ll reinforcing i f i i N in North th A America, i A leader in Europe businesses Asia and key emerging markets Investor Relations 10/08 ·
Slide 17: Agenda
Agenda 1 The credit crisis: Current status 2 Deutsche Bank: Strength in challenging conditions 3 Furthering our strategy: Deutsche Postbank 4 Strategy: Continuing to play to our strengths Investor Relations 10/08 · 17
Slide 18: Acquisition of stake in Postbank: Strategically and financially attractive
Acquisition of stake in Postbank: Strategically and financially attractive for shareholders Rapid profit growth and cost-efficiency Financial Strong brands investment into Postbank Loyal customers and employees Immediate P&L contribution Two strong platforms: Potential to reach nearly 30 m
Slide 19: In Germany, co-operation will reach a wide client base
In Germany, Germany co-operation will reach a wide client base Clients* in Germany as at end 2007, in million Savings Banks ~ 50 Co-operative B k Banks 30 14.5 97 9.7 6.5 6.1 5.5 4.0 3.3 * Source: company information, FAZ Investor Relations 10/08 · 19
Slide 20: PBC and Postbank: A powerful basis for co-operation
PBC and Postbank: A powerful basis for co-operation As of 31 December 2007 PBC Clients & distribution Clients (m) 14.5 13.8 Branches 855 1 650 1,650 Mobile sales force ~ 4,300 ~ 3,200 FTE (000) 21.5 23.1 Brands Financials (EUR bn) Revenues 4.3 5.8 IBIT* 1.0 1.1 Customer loans 90 89 Customer deposits
Slide 21: Envisaged areas of co-operation between Postbank and PBC
Envisaged areas of co-operation between Postbank and PBC Rationale: Postbank is a market leader in prime segment for standard mortgages Mortgages / DSL may become preferred provider in this segment for PBC home finance Postbank (BHW) and PBC will explore cross-sell opportunities for their respec
Slide 22: Agenda
Agenda 1 The credit crisis: Current status 2 Deutsche Bank: Strength in challenging conditions 3 Furthering our strategy: Deutsche Postbank 4 Strategy: Continuing to play to our strengths Investor Relations 10/08 · 22
Slide 23: Strategy: We stay the course
Strategy: We stay the course Management Agenda Phase 3 2006 – 2008: Leveraging our global platform for accelerated growth Maintain our cost, risk, capital and regulatory Continue to invest in organic growth and discipline ‘bolt-on’ acquisitions F th grow our ‘stable’ Further ‘ t bl ’ b businesses i
Slide 24: Leveraging our global platform for accelerated growth
Leveraging our global platform for accelerated growth Capital, liquidity and Investment Banking 'Stable' businesses exposures Market conditions impact GTB: Further momentum / Continue to focus on reducing structured credit leverage Dutch acquisition exposures Share gains in 'flow' products
Slide 25: Cautionary statements
Cautionary statements This presentation contains forward-looking statements. Forward-looking statements are statements that are not historical f t they facts; th i l d statements include t t t about b t our beliefs b li f and d expectations t ti and d the th assumptions ti underlying d l i th them.