Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Investor Presentation (December 2004)
33 slides from Deutsche Bank's investor presentation, Dec 15, 2004
Slide 1: Deutsche Bank Investor Presentation
Deutsche Bank Investor Presentation Dr. Josef Ackermann Spokesman of the Board of Managing Directors and Chairman of the Group Executive Committee Zürich, 15 December 2004
Slide 2: 3Q2004 at a glance
3Q2004 at a glance 3Q2004 January – September 2004 Net income EUR Net income EUR up 18% 0.7 bn up 145% 2.3 bn EPS (diluted) EUR EUR up 28% 1.28 EPS (diluted) up 166% 4.13 Total revenues EUR EUR down 2% Total revenues up 3% 5.1 bn 16.6 bn RoE (pre-tax return RoE (pre-tax return on average active equi
Slide 3: Agenda
Agenda 1 Balanced revenue mix 2 Market position 3 Growth opportunities 4 Risk and capital management 5 Strategy Investor Relations 12/04 · 3
Slide 4: Successful regional diversification
Successful regional diversification Regional split of revenues(1) EUR 6bn EUR 10bn EUR 22bn Asia / Pacific 2% 4% Americas 4% 7% 10% Rest of Europe 15% 20% 27% 30% Germany 79% 69% 33% 1989 1995 2003 Note: Figures may not add up due to rounding; Data for 1989 is based on HGB, 1995 on IAS and 2003 on U
Slide 5: Outstanding regional diversification compared to global peers
Outstanding regional diversification compared to global peers Revenues 2003(1) Home market Other regions 100% 18% 27% 30% 36% 37% 61% 67% 70% 82% 73% 70% 64% 63% 39% 33% 30% (2) (1) Underlying revenues for Deutsche Bank, net revenues or similar measures for peers (2) Pro-forma including Bank One Sou
Slide 6: Increasing diversification by business area
Increasing diversification by business area Underlying revenues Underlying pre-tax profit 100% 100% PCAM 2% PCAM 32% 27% 32% 37% 37% CIB 98% 73% CIB 68% 68% 63% 63% 2001 2003 Jan - Sep 2001 2003 Jan - Sep Note: Only CIB and PCAM; figures for 2001 based on structure as of 31 December 2003 Investor Re
Slide 7: CIB revenues in context
CIB revenues in context Underlying revenues, Jan - Sep 2004 100% 6% 14% 4% 11% 22% 23% 24% 18% 24% 28% 8% 20% 9% 13% 19% 22% 89% 15% 78% 77% 76% 72% 65% 69% 54% 39% (1) ∅ Peers Sales & Trading Investment banking Loan products Transaction banking Note: Excluding other products (1) JPM incl. Bank One
Slide 8: Sales & Trading – Leadership and stability
Sales & Trading – Leadership and stability Sales & Trading revenues, in EUR bn ∅ Deviation(1) 12% Peers 17% 3 2 1 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2002 2003 2004 Deutsche Bank Average peers(2) Note: Deutsche Bank data for 2002 base on Group structure as of 31 December 2003 (1) Deviation from mean
Slide 9: PCAM – Well diversified, with strength in investment products
PCAM – Well diversified, with strength in investment products Revenues Jan - Sep 2004, in EUR bn 6.0 Peer comparison Portfolio / Fund management 31% Strong position in investment products Brokerage 21% Loan / Deposit 30% Lower revenue share in loan / Payments, account & deposit business remainin
Slide 10: Agenda
Agenda 1 Balanced revenue mix 2 Market position 3 Growth opportunities 4 Risk and capital management 5 Strategy Investor Relations 12/04 · 10
Slide 11: CIB – Top tier investment bank
CIB – Top tier investment bank Underlying revenues Jan - Sep 2004, CIB vs. major peers, in EUR bn Other revenues GTB Transaction banking Loan products 13.7 12.9 CB&S Investment banking (1) Sales & Trading 10.7 10.1 1.4 8.4 0.9 7.8 1.4 6.7 6.5 6.7 Note: Conversion into EUR based on average quarterly
Slide 12: Sales & Trading Debt – Leadership and momentum
Sales & Trading Debt – Leadership and momentum … Revenues(1) Revenue development Jan - Sep 2004, in EUR bn Jan - Sep 2004 vs. Jan - Sep 2003, in %(1) 5.6 18% 5.0 2% 4.8 (1)% 4.3 (3)% 4.0 (4)% 3.8 (8)% 3.2 (12)% 2.7 (23)% Note: JPM incl. Bank One (historical data based on unaudited pro-forma statemen
Slide 13: ... and strength in high-margin equities products
... and strength in high-margin equities products EXAMPLES No.1 Overall Equity Derivatives (Institutional Investor, 2004) Equity Equity Derivatives House of the Year (IFR Review of the Year, 2003) Derivatives No.1 Global Equity Derivatives Research (Institutional Investor, Dec 2003) No.1 US
Slide 14: Gaining market share in Global Corporate Finance
Gaining market share in Global Corporate Finance Revenue market share, in % 6 7 2 1 1 16 9 9 8 6 9 10 8 9 10 8 7 8 7 6 Rank 10 2.8ppt 8.4 5.4ppt 0.9ppt 1.9ppt 8 7.7 7.3 6.9 6 6.0 5.8 5.6 5.2 5.4 4.6 4.3 4.3 4.4 4.3 4 3.9 4.1 3.4 3.4 3.1 2 1.5 0 00 01 02 03 1H04 00 01 02 03 1H04 00 01 02 03 1H04 00 0
Slide 15: PCAM with significant asset base
PCAM with significant asset base PCAM invested assets, as of 30 September 2004, in EUR bn 561 303 864 (1) (1), (2) Asset Management Other 0 500 1.000 1.500 Note: Conversion into EUR based on average quarterly FX rates (1) Excluding PBC equivalent (DB invested assets comparable data not available) (2
Slide 16: Germany's leading retail bank
Germany‘s leading retail bank Pre-tax profit, in EUR m Jan-Sep 2003 742 Jan-Sep 2004 386 363 343 291 308 259 188 116 84 (1) (2) (3) (4) (5) (1) PBC, underlying pre-tax profit (US GAAP) (2) Private and business clients (IAS) (3) Retail Banking (IAS) (4) Retail banking (IAS) (5) Business with private
Slide 17: Agenda
Agenda 1 Balanced revenue mix 2 Market position 3 Growth opportunities 4 Risk and capital management 5 Strategy Investor Relations 12/04 · 17
Slide 18: Well positioned to capture regional growth opportunities
Well positioned to capture regional growth opportunities Regional distribution of revenues(1), in EUR bn Global revenue pool 2003 - 2007e 100% 16 1,600 p.a.(2) 10% Asia / Pacific 23% 3.9% 27% Americas 43% 3.1% Europe ex Germany 30% 29% 2.8% Germany 33% 5% 1.9% 2003 2003 (1) Underlying revenues for D
Slide 19: Growth products across all business areas
Growth products across all business areas Change in underlying revenues, Jan - Sep 2004 vs. Jan - Sep 2003 CB&S Com. Mortgage Backed Sec. 30% GTB Trust & Securities Services 27% CB&S Debt Finance 26% CB&S Credit Trading 23% AWM GMT Asia / Pacific 19% CB&S Global Prime Services 19% CB&S GE Derivative
Slide 20: Agenda
Agenda 1 Balanced revenue mix 2 Market position 3 Growth opportunities 4 Risk and capital management 5 Strategy Investor Relations 12/04 · 20
Slide 21: Continued active management of loan book
Continued active management of loan book ... Loans(1), in EUR bn 172 (3)% 148 149 145 140 Non-German 52% 57% 56% 55% 56% German 31 Dec 31 Dec 31 Mar 30 Jun 30 Sep 2002 2003 2004 2004 2004 68 71 72 73 74 Retail / Commercial(2) 89 64 63 60 56 Corporate(3) 15 13 14 12 10 FIs / Public sector (1) Include
Slide 22: Eighth consecutive quarter of declining risk provisions
... with the eighth consecutive quarter of declining risk provisions Total provision for credit losses, in EUR m 790(1) (69)% 511 423 384 350 333 (30)% 191 189 141 83 58 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2002 2003 2004 German 113 180 255 (26) 105 152 117 92 116 53 40 271 331 535 449 245 181 74 97 25
Slide 23: VaR is reverting back to levels in 1Q2004
VaR is reverting back to levels in 1Q2004 VaR of CIB trading units (99%, 1 day), in EUR m ∅ 66.9 ∅ 81.7 ∅ 73.6 100 87.6 75.5 90 67.9 80 (23)% 70 60 50 1Q2004 2Q2004 3Q2004 Investor Relations 12/04 · 23
Slide 24: Tier 1 ratio still above upper end of target range
Tier 1 ratio still above upper end of target range, after redemption of hybrid capital 10.0 10.0 10.1 9.6 9.5 9.4 9.2 9% Target range 239 8% 232 226 223 216 219 218 Tier 1 ratio, in % RWA, in EUR bn 31 Mar 30 Jun 30 Sep 31 Dec 31 Mar 30 Jun 30 Sep 2003 2004 22.9 23.2 21.6 21.6 22.1 20.9 19.9 Tier 1
Slide 25: Creating value for our shareholders
Creating value for our shareholders Dividends per share Capital returned In EUR In EUR bn 1.50 6.1 1.30 1.30 1.30 1.12 1.15 1.6 Total dividend payouts(1) 0.92 4.5 Share buybacks(2) 1999 2000 2001 2002 2003 1997 1998 (1) For the financial years 2002 and 2003 – excluding shares in Treasury (2) Total v
Slide 26: Improving RoE in the businesses
Improving RoE in the businesses Average active Underlying pre-tax RoE, In % equity, in EUR bn in % 28.2 100% 14 Group 25.2 18 100% Group RoE target 25% Corporate 13.0 46% 23 Banking & Securities 11.6 28 26 46% CIB Global 1.4 5% 20 Transaction Banking 1.4 5% 23 Asset 5.8 20% 10 and Wealth 5.1 10 PCAM
Slide 27: Agenda
Agenda 1 Balanced revenue mix 2 Market position 3 Growth opportunities 4 Risk and capital management 5 Strategy Investor Relations 12/04 · 27
Slide 28: Realigning the Group Executive Committee
Realigning the Group Executive Committee … Ackermann Börsig Lamberti von Heydebreck (Chairman) (CFO/CRO) (COO) (CAO) CIB PCAM Global Markets Global Banking(1) AWM PBC Jain Cohrs(2) de Weck, Parker(3) Neske Regions: Fitschen(4) Note: Hughes – Sabbatical (1) Includes Global Transaction Banking which i
Slide 29: Unlocking significant benefits for our clients
… unlocking significant benefits for our clients Examples Providing access to aligned Sales & Trading platform across Aligned full range of debt and equities products Sales & Trading Exploiting trading opportunities across products Improving orchestration of delivery across products Unified
Slide 30: Detailed execution plan is underway
Detailed execution plan is underway Lead Deliverables through 4Q2004 Sales & Trading A. Jain Organisational alignments Coverage M. Cohrs Evolved operating model Asset Cost and revenue synergies K. Parker Management Cost to achieve Regions / J. Fitschen Timetable for implementation
Slide 31: Making progress against our 25% pre-tax RoE target
Making progress against our 25% pre-tax RoE target Underlying pre-tax return on equity, in % 25 18 14 ppt 13 Additional growth initiatives Revenue and cost synergies Capital measures 4 2002 2003 Jan-Sep Target 2004 2005 Investor Relations 12/04 · 31
Slide 32: Summary – Clear strategy
Summary – Clear strategy 1 Current positioning is excellent 2 Emphasis on organic growth 3 Clear strategic plans for all businesses and regions All the financial, organisational and capital resources for successful 4 implementation are in place Investor Relations 12/04 · 32
Slide 33: Cautionary statement regarding forward-looking statements and non-U.S. GAAP financial measures
Cautionary statement regarding forward-looking statements and non-U.S. GAAP financial measures This presentation contains forward-looking statements. Forward-looking statements are statements that are not historical facts; they include statements about our beliefs and expectations. Any statement in
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