Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Non-Deal Roadshow (June 2010)
32 slides from Deutsche Bank's roadshow presentation, Jun 2, 2010
Slide 1: Investor Roadshow, Madrid, 2 June 2010
Deutsche Bank Deutsche Bank Dr. Josef Ackermann Chairman of the Management Board and the Group Gro p Executive E ec ti e Committee Deutsche Bank 2 June 2010 Investor Roadshow Investor Relations Dr. Josef Ackermann Madrid, 2 June 2010
Slide 2: Agenda
Agenda 1 A strong start to 2010: 1Q Highlights 2 Implementing Phase 4 of our management agenda 3 Key current issues Deutsche Bank 2 June 2010 2 Investor Relations Dr. Josef Ackermann
Slide 3: First Quarter 2010: Highlights
First Quarter 2010: Highlights 1Q2009 1Q2010 Income before income taxes (in EUR bn) 18 1.8 28 2.8 Profitability Net income (in EUR bn) 1.2 1.8 Pre-tax RoE (target definition)(1) 25% 30% 31 Dec 31 Mar 2009 2010 Ti 1 capital Tier it l ratio ti 12 6% 12.6% 11 2% 11.2% Capital Core Tier 1 capital ratio
Slide 4: First quarter revenues and profits close to pre-crisis levels
First quarter revenues and profits close to pre-crisis levels IIn EUR bbn Net revenues Income before income taxes 9.6 9.0 3.2 8.0 2.8 2.6 7.2 6.6 6.2 1.8 1.8 16 1.6 5.0 4.6 0.2 (0.3) ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 1Q 1Q Note: 2003-2005 based on U.S. GAAP reported fig
Slide 5: Global Markets 1Q2010 vs. 1Q2007: A tale of two cities
Global Markets 1Q2010 vs. 1Q2007: A tale of two cities Similar top line revenue performance . . . p . . . using g significantly g y lower resources S&T revenues, in EUR m 1Q2010 vs. 1Q2007 (2) (26%) U.S. GAAP pro-forma 1Q2010 vs. Peak (47%) assets n.a. (38%) Level 3 Assets 5,068 4 746 4,746 3% RWA (
Slide 6: Reduced provisioning for credit losses
Reduced provisioning for credit losses I EUR m In Related to IAS 39 reclassified assets (50)% 1,000 526 544 560 262 492 308 329 249 159 1Q 2Q 3Q 4Q 1Q 2009 2010 Thereof: CIB 357 779 323 357 90 169 221 214 201 173 Thereof: PCAM Note: Divisional figures do not add up due to omission of Corporate Inves
Slide 7: Tier 1 capital remains well above target
Tier 1 capital remains well above target Tier 1 ratio: (117) bps(1) 12.6 11.7 11.2 11 0 11.0 11.2 10.2 Target: ≥10% 8.7 7.8 8.1 7.5 7.1 7.5 RWA: EUR 17 bn 316 295 288 292 273 1Q 2Q 3Q 4Q 1Q 2009 2010 Tier 1 ratio, in % Core Tier 1 ratio, in % RWA, in EUR bn Sal. Oppenheim Group impact Note: Core Tie
Slide 8: Agenda
Agenda 1 A strong start to 2010: 1Q Highlights 2 Implementing Phase 4 of our management agenda 3 Key current issues Deutsche Bank 2 June 2010 8 Investor Relations Dr. Josef Ackermann
Slide 9: Well placed to deliver on Phase 4
Well placed to deliver on Phase 4 Management Agenda Phase 4 2009 – 2011 Increase CIB profitability with renewed Focus on core PCAM businesses risk and balance sheet discipline and home market leadership Focus on Asia as a key driver Reinvigorate our of revenue growth performance culture Deutsche Ban
Slide 10: Phase 4: Financial potential
Phase 4: Financial potential Phase 4 potential 2011 Revenue growth p.a. ~ 8% Perfformance Income before income taxes, in EUR bn(1) ~ 10.0 Return on Equity(2) 25% over-the-cycle Cost / income ratio ~ 65% Consttraints Tier 1 ratio ≥10% Leverage(3) ≤25x ( ) (1) Before Corporate p Investments and Consol
Slide 11: Phase 4: assumptions for 2010 – 2011
Phase 4: assumptions for 2010 – 2011 — No further major market dislocations — Normalization of asset valuations — Global revenue fee pool: CAGR of 9% to a level slightly Environmental below 9M2007 annualized — Margins remain higher than pre-crisis — Interest rates normalization from 2nd half 2010 —
Slide 12: Phase 4: IBIT potential of business divisions
Phase 4: IBIT p potential of business divisions In EUR bn Ph Phase 4 potential t ti l 2011 Corporate Banking & Securities 6.3 Global Transaction Banking 1.3 Asset and Wealth Management 1.0 Private & Business Clients 1.5 Total business divisions 10.0 Note: Figures do not add up due to rounding differ
Slide 13: 2011 potential: CB&S / Global Markets
2011 potential: CB&S / Global Markets I Income before b f income i taxes, t in i EUR bn b Risk Revenue development Cost development development — Margin / volume — De-risking losses normalisation ~2.4 ~(1.6) ~(0.9) — Legacy businesses — Lower market volatility — Mark-downs — Strategic hiring — Predo
Slide 14: 2011 potential: CB&S / Corporate Finance
2011 potential: CB&S / Corporate Finance I Income before b f income i taxes, t in i EUR bn b Cost Risk — Credit spreads Revenue development development development tightening ~0.9 ~(0.4) ~0.0 — Lower market volatility — Lower hedge losses 0.9 0.6 0.4 — Top-5 2.4 — Key investments — Strategic hires:
Slide 15: 2011 potential: Global Transaction Banking
2011 potential: Global Transaction Banking I Income before b f income i taxes, t in i EUR bn b Cost Risk Revenue development development development ~1.1 ~(0.5) ~(0.0) — Supply Chain Finance — Expansion in — Agency Securities key growth Lending regions (e.g. — Securities Clearing Asia, MENA) — Alter
Slide 16: 2011 potential: Asset Management
2011 potential: Asset Management I Income before b f income i taxes, t in i EUR m Assumes no appreciation of equity indices 2010 - 2011 Risk Revenue development Cost development development ~45 ~235 ~0 500 — Rightsizing / Smartsourcing / — RREEF-related losses Outsourcing (RREEF prop — MM fund injec
Slide 17: 2011 potential: Private Wealth Management
2011 potential: Private Wealth Management IIncome before b f income i taxes, t excluding l di effects ff t from f Sal. S l Oppenheim, O h i in EUR m Cost Risk Revenue development development development ~310 ~(0) ~0 425 — Increased volumes — Global re-pricing — New platform — Severance initiative pr
Slide 18: Sal. Oppenheim: Dedicated strategy for each business activity
Sal. Oppenheim: Dedicated strategy for each business activity ti it Cluster 1 Cluster 2 Cluster 3 Cluster 4 WM GER + AM Select WM / AM Other business GER/LUX international activities Wealth Management Switzerland IB Wealth Management Germany Austria Other (BAS, SGG, Asset Management Asset Management
Slide 19: Sal. Oppenheim: Asset base
Sal. Oppenheim: Asset base Invested assets development Sal. Oppenheim Group(1) Observations In EUR bn 8 127 — Invested assets have 15 grown with only (2) 103 (2) 105 1 4 45 marginal net outflows (1) (4) BHF 34 (3) 38 — Invested assets of IB, SOPEP, 14 core proposition(5) OVAM & other 2 WM foreigng 9
Slide 20: PWM and Sal. Oppenheim: Benefits, synergies and outlook
PWM and Sal. Oppenheim: Benefits, synergies and outlook — Undisputed leadership in Private Wealth Management in Germany — Complementary C l t client li t profile, fil particularly ti l l iin th the UHNWI client li t segmentt Strategic — Second wealth management proposition with strong brand compleme
Slide 21: 2011 potential: Private & Business Clients
2011 potential: Private & Business Clients I Income before b f income i taxes, t in i EUR bn b Risk Revenue development Cost development development ~0.7 ~0.1 ~0.0 1.5 — Severance / — IT investments related to — Other efficiency program — One-off gain from LLP Optimization in: recalibration — Hua Xi
Slide 22: Complexity reduction program: Further strengthen competitive position
Complexity reduction program: Further strengthen competitive i i position ii Efficiency y gains g and complexity p y Development cost/income ratio reduction Reported, in % 134 — Efficiency gains and complexity reduction is planned to result in EUR 1 bn cost savings in infrastructure areas (based on
Slide 23: Cost and infrastructure efficiency: examples of initiatives
Cost and infrastructure efficiency: examples of initiatives I EUR m In Illustrative End 2011 potential Function / area Key levers run-rate run rate cost saving Technology / IT Functional alignment of IT operating model: — Elimination of duplication — Functional integration and standardisation of pro
Slide 24: On track to achieve 2011 targets
On track to achieve 2011 targets g Income before income taxes, in EUR bn Phase 4 1Q2010 potential reported 2011 Prospects / Key features — Capture client flow / market share with prudent risk Corporate Banking & taking 2.6 6.3 Securities — Record performance in traditionally strong first quarter Glo
Slide 25: Agenda
Agenda 1 A strong start to 2010: 1Q Highlights 2 Implementing Phase 4 of our management agenda 3 Key current issues Deutsche Bank 2 June 2010 25 Investor Relations Dr. Josef Ackermann
Slide 26: The changing environment: current issues
The changing environment: current issues Consultation phase Proposal / discussion phase — Basel Committee consultative document — National capital requirements — Capital / capital eligibility — Structure and capitalization of legal — Leverage entities — Liquidity — Asset allocation — Counterparty cr
Slide 27: Tier 1 capital and RWA development
Tier 1 capital and RWA development I EUR bn In b Tier 1 capital RWA 14.4 0.7 1.8 292.5 (6.7) (1.3) 6.5 34.4 1.5 3.3 32 8 32.8 273 5 273.5 (2.1) (0.1) (0.5) 31 Dec 1Q10 FX Sal. Capital Equity Other(2) 31 Mar 31 Dec Market Opera- FX Sal. Other 31 Mar 2009 Net effects Oppen- de- com- 2010 2009 risk((3)
Slide 28: Sovereign risk
Sovereign risk C Concerns about b t sovereign i risk i k – potential t ti l tertiary t ti effect ff t through th h contagion t i CDS spreads by country (in bps) DB exposures(1) by country, 31 Mar 2010 1 000 1,000 900 800 700 600 500 400 300 200 100 Italy Spain Portugal Greece Ireland 0 Aug 08 Nov 08
Slide 29: Modest reliance on shorter term wholesale funding
Modest reliance on shorter term wholesale funding I EUR bn In b Funding sources overview Liquidity position 31 Dec 2009 (Total: EUR 777 bn) — Secured funding increase mainly 31 Mar 2010 (Total: EUR 856 bn) 211 against highly liquid trading assets 173 165 164 — Incremental discretionary 153 158 whole
Slide 30: Key takeaways
Key takeaways — Significant capital buffer; above targets Well-capitalized — Future retained earnings potential — Fresh capital p for buying y g new earnings g streams ((only) y) Strong liquidity / — Substantial liquidity reserve f di funding — Diverse unsecured funding base — Profit growth of core
Slide 31: Shareprice and dividend
Shareprice and dividend Shareprice performance since 2009 Dividend Total shareholder return, in LFC, Dividend per share, in EUR indexed, 1 Jan 2009 = 100 0 75 0.75 69% 0 50 0.50 International 46% peers(1) 18% DAX 1 Jan 09 30 Jun 09 31 Dec 09 25 May 10 2008 2009 (1) International peers (Goldman Sachs
Slide 32: Cautionary statements
Cautionary statements This presentation contains forward forward-looking looking statements. Forward Forward-looking 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 b