Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Non-Deal Roadshow (September 2007)
22 slides from Deutsche Bank's roadshow presentation, Sep 10, 2007
Slide 1: Deutsche Bank Roadshow
Deutsche Bank Roadshow Dr. Josef Ackermann Chief Executive Officer Paris / London / Zürich, 10 – 14 September 2007
Slide 2: Agenda
Agenda 1 Putting recent market dislocations into context 2 1H2007 performance 3 Strengthened strategic positions 4 Phase 3 of our Management Agenda Investor Relations 09/07 · 2
Slide 3: Sub-prime risks are manageable
Sub-prime risks are manageable Sub-prime crisis is manageable … … in context of the major capital markets Outstanding volume (in USD tn) Capitalisation (in USD tn)(2) ~50 ~85 ~35 ~10 ~7 ~1.2 ~1.5 ~1.0 (5) US sub- US asset- CDOs US MBS US Quoted shares (3) Debt securities (4) Total capitalisation pri
Slide 4: Environment for structured products and leveraged lending remains challenging
Environment for structured products and leveraged lending remains challenging US asset-backed CP market US market for CDO issuance Outstanding volume 2007 (in USD bn) Monthly issuance 2007 (in USD bn) 1,152 1,135 42 41 40 1,108 30 1,072 27 1,051 1,058 1,064 1,052 8 11 n.a. Jan Feb Mar April May June
Slide 5: Deutsche Bank exposures
Deutsche Bank exposures DB is not exposed to further deterioration in US sub-prime mortgages across its books US sub-prime Exposure to US mortgage originators tightly managed and largely hedged Total assets in DB-sponsored conduits of EUR 32 bn Substantially all of which consolidated on bala
Slide 6: Outlook
Outlook Work-out of the sub-prime crisis in the USA Gradual stabilisation of the money and credit markets Declining consumer confidence in the USA Slight decline in global growth rates German economy on growth course Investor Relations 09/07 · 6
Slide 7: Agenda
Agenda 1 Putting recent market dislocations into context 2 1H2007 performance 3 Strengthened strategic positions 4 Phase 3 of our Management Agenda Investor Relations 09/07 · 7
Slide 8: Outstanding profit growth
Outstanding profit growth In EUR bn 1st half Income before income taxes Net income 8.3 6.1 6.1 5.9 3.9 3.5 4.0 26% 30% 2.5 2.8 4.6 1.4 3.0 2003 2004 2005 2006 1H2007 2003 2004 2005 2006 1H2007 Note: 2003-2005 based on U.S. GAAP, 2006 onwards based on IFRS Investor Relations 09/07 · 8
Slide 9: Outperformance against key targets
Outperformance against key targets Pre-tax RoE (target definition)(1) Diluted EPS (target definition)(2) In % 1ppt In EUR 10.24 37 38 38% 31 7.32 6.95 25 5.31 4.53 16 13 2.31 2003 2004 2005 2006 1H 1H 2003 2004 2005 2006 1H 1H 2006 2007 2006 2007 (1) 2003-2004 underlying; 2005 as per target definiti
Slide 10: Delivery to shareholders
Delivery to shareholders Dividend per share Cash returned to shareholders In EUR In EUR bn 32% CAGR 4.00 12.9 Dividends 5.7 2.50 1.70 1.50 1.30 Share 7.2 retirements 2002 2003 2004 2005 2006 2002 - 2006 Investor Relations 09/07 · 10
Slide 11: Agenda
Agenda 1 Putting recent market dislocations into context 2 1H2007 performance 3 Strengthened strategic positions 4 Phase 3 of our Management Agenda Investor Relations 09/07 · 11
Slide 12: Well diversified global footprint
Well diversified global footprint Net revenues(1) Income before income taxes(2) Asia / Pacific FY 2006 Americas EUR 28 bn EUR Europe (ex. Germany) 8.1 bn Germany 12% 12% 100% 29% 29% EUR 10 bn 4% 34% 38% 7% 20% 69% 25% 20% 1995 2006 Germany Europe Americas Asia / Total (excl. Pacific Germany) (1) 19
Slide 13: A world-leading investment bank …
A world-leading investment bank … Revenues Corporate Banking & Securities, 1H2007, in EUR bn 12.8 Loan 11.4 0.5 10.8 10.5 products 10.0 1.7 9.5 8.6 Investment 7.6 banking 6.8 Sales & 9.4 Trading Goldman DB Citi JPMorgan Morgan Merrill Credit UBS Lehman Sachs* Chase Stanley* Lynch Suisse Brothers* *
Slide 14: … with a strong and growing private clients franchise
… with a strong and growing private clients franchise In EUR bn Net new money 1H2007 Leading asset gatherer PCAM invested assets, 30 Jun 2007 UBS 10 29 MER(1) CS 962 9 MS JPM(2) 10 GS(3) C(2) LEH AM PWM PBC PCAM Asset Mgmt. Private Banking and others (1) Total Private Client Assets and 50% of BlackR
Slide 15: Agenda
Agenda 1 Putting recent market dislocations into context 2 1H2007 performance 3 Strengthened strategic positions 4 Phase 3 of our Management Agenda Investor Relations 09/07 · 15
Slide 16: The current phase of our strategy
The current phase of our strategy Management Agenda Phase 1 Management Agenda Phase 2 2002 – 2003: 2004 – 2005: Refocusing the business Growth and 25% RoE Management Agenda Phase 3 2006 – 2008 Leveraging our global platform for accelerated growth Maintain our cost, risk, capital and Continue to inve
Slide 17: Maintain our cost, risk, capital and regulatory discipline
Maintain our cost, risk, capital and regulatory discipline Cost Risk Capital CIR, in % Problem loan ratio(1), in % Tier 1 ratio(2), in % 6.3 10.0 9.6 82 80 4.5 8.6 8.7 8.5 8.4 79 75 3.5 70 2.5 67 1.8 1.5 '02 '03 '04 '05 '06 1H07 '02 '03 '04 '05 '06 1H07 '02 '03 '04 '05 '06 1H07 (1) Problem loans div
Slide 18: Continue to invest in organic growth and 'bolt-on' acquisitions
Continue to invest in organic growth and ‘bolt-on’ acquisitions Acquisitions, partnerships and organic investments UK China Tilney JPM Depository and Partnership with Hua Xia and Clearing Centre Harvest Fund Management USA Abbey Life PWM office in Shanghai MortgageIT PBC branches in Be
Slide 19: Further grow our 'stable' businesses
Further grow our ‘stable’ businesses Income before income taxes, in EUR bn GTB AWM PBC 2x 2.6 1.9 1.6 1.5 1.3 2003* 2004 2005 2006 1H2007 * GTB 2003 excl. gain on sale of GSS Note: 2003 results have not been adjusted to latest structure; 2003 – 2005 based on U.S. GAAP; 2006 onwards based on IFRS Inv
Slide 20: Build on our competitive edge in investment banking
Build on our competitive edge in investment banking Income before income taxes CB&S, in EUR bn 2x 5.4 3.9 3.9 2.7 2.5 2003 2004 2005 2006 1H2007 Note: 2003 results have not been adjusted to latest group structure. 2003-2005 numbers based on U.S. GAAP, 2006 onwards based on IFRS Investor Relations 09
Slide 21: We are confident of delivering on our Group targets
We are confident of delivering on our Group targets Group targets “over-the-cycle” Vision 2008 Income before income taxes*, in EUR bn Corporate Banking & Securities 5.3 Sustainable profitability of 25% pre-tax RoE Global Transaction Banking 1.0 Maintaining Maintaining Asset and Wealth Management 1.3
Slide 22: Cautionary statements
Cautionary statements Unless otherwise indicated, the financial information provided herein has been prepared under the International Financial Reporting Standards (IFRS). It may be subject to adjustments based on the preparation of the full set of financial statements for 2007. The segment informat