Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Non-Deal Roadshow (March 2008)
35 slides from Deutsche Bank's roadshow presentation, Mar 12, 2008
Slide 1: Deutsche Bank
Deutsche Bank Dr. Josef Ackermann Chairman of the Management Board Boston and New York, 11-12 March 2008
Slide 2: Agenda
Agenda 1 2007: Solid in challenging times 2 4Q2007 in detail 3 Management Agenda Phase 3 4 Appendix Investor Relations 03/08 · 2
Slide 3: A year of solid performance in challenging times
A year of solid performance in challenging times In EUR bn Revenues Profit 8% 5% 30.7 8.3 8.7 28.5 6.1 6.5 7% 2006 2007 2006 2007 Income before income taxes Net income Investor Relations 03/08 · 3
Slide 4: Solid profit growth in our core businesses
Solid profit growth in our core businesses Income before income taxes, in EUR bn CIB PCAM 10% p.a. 15% p.a. 6.1 2.1 1.9 5.1 4.3 1.5 1.4 3.5 1.2 2.8 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 Note: 2003-2005 based on U.S. GAAP, 2003 based on structure as of 2005, 2004-2005 based on structure o
Slide 5: Continued leadership in investment banking in difficult conditions
Continued leadership in investment banking in difficult conditions CB&S revenues FY2007, in EUR bn 25.7 Loan 16.5 16.3 products 12.3 11.9 Investment 10.4 banking Sales & Trading 2.9 (0.2) (1.1) Goldman DB JPMorgan Credit Lehman Morgan Citi UBS Merrill Sachs* Chase Suisse Brothers* Stanley* Lynch * D
Slide 6: A year of substantial capital formation
A year of substantial capital formation At year end Total shareholders’ equity Book value per share* Tier 1 capital In EUR bn In EUR In EUR bn 13% 12% 20% 37.0 77.54 28.3 32.8 69.48 23.5 2006 2007 2006 2007 2006 2007 * Book value per share is defined as shareholders’ equity divided by the number of
Slide 7: Delivery on targets
Delivery on targets Reported Target definition Pre-tax RoE Diluted EPS In % In EUR 33 29 54% p.a. 13.05 26 11.48 24 10.79 25% 16 6.95 10 4.53 2.31 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 Note: 2003-2005 based on U.S. GAAP, 2006 onwards based on IFRS Investor Relations 03/08 · 7
Slide 8: We maintain an attractive dividend policy
We maintain an attractive dividend policy Dividend per share, in EUR 3x 4.50 4.00 2.50 1.70 1.50 2003 2004 2005 2006 2007 Recommended Investor Relations 03/08 · 8
Slide 9: Agenda
Agenda 1 2007: Solid in challenging times 2 4Q2007 in detail 3 Management Agenda Phase 3 4 Appendix Investor Relations 03/08 · 9
Slide 10: Pre-tax profits of EUR 1.4 bn in 4Q, EUR 8.7 bn for the year
Pre-tax profits of EUR 1.4 bn in 4Q, EUR 8.7 bn for the year Income before income taxes, in EUR bn 5% (25)% 8.7 8.3 3.2 2.6 2.7 2.0 1.9 1.8 1.4 1.4 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Full year 2006 2007 2006 2007 Investor Relations 03/08 · 10
Slide 11: Net income of EUR 1.0 bn in the fourth quarter
Net income of EUR 1.0 bn in the fourth quarter In EUR bn Significant tax 7% effects* (47)% 6.5 2.1 6.1 1.8 1.8 1.6 1.6 1.4 0.4 1.2 0.6 1.0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Full year 2006 2007 2006 2007 * 4Q2006 reflects corporate tax credits, 3Q2007 reflects the effects of German tax reform, utilisation of c
Slide 12: Net revenues comparable to 4Q2006
Net revenues comparable to 4Q2006 In EUR bn 8% 2% 30.7 28.5 9.6 8.8 8.0 6.9 7.2 7.3 6.4 5.1 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Full year 2006 2007 2006 2007 Investor Relations 03/08 · 12
Slide 13: Compensation expenses in line with performance; G&A expenses consistent with run-rate
Compensation expenses in line with performance; G&A expenses consistent with effective run-rate for 2Q / 3Q2007 Noninterest expenses, in EUR bn 8% 8% 21.4 6.3 19.9 6.0 5.5 5.4 5.1 4.8 4.5 13.1 4.3 3.5 3.2 12.5 3.6 3.1 3.9 3.0 2.7 1.7 1.9 2.1 7.1 8.0 1.7 1.7 1.9 2.1 1.7 1.8 0.1 0.1 0.1 0.1 0.2 0.3 0.
Slide 14: Key cost ratios consistent with 2006
Key cost ratios consistent with 2006 In % Cost / income ratio(1) 67 69 71 71 66 68 69 76 70 70 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Full year 2006 2007 2006 2007 Compensation ratio(2) Non-compensation ratio(3) 45 44 43 43 45 44 44 44 43 36 32 33 22 26 28 29 21 24 26 27 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Full year 1Q 2Q 3Q
Slide 15: Leveraged finance: Current status
Leveraged finance: Current status Composition of current commitments In EUR bn 30 Sep 2007 total commitments 41.4 FX (1.5) Sales (5.1) Restructured 0.2 Funded 15.3 Trading 34.9 New commitments 1.2 31 Dec 2007 total commitments 36.2 Unfunded 20.9 Loans held 1.3 Development of write-downs Expected fun
Slide 16: Provisions: Rise in 4Q primarily driven by single counterparty relationship
Provisions: Rise in 4Q primarily driven by single counterparty relationship Provision for credit losses, in EUR m 612 329 298 131 98 105 82 76 81 9 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Full year 2006 2007 2006 2007 Thereof: CIB (72) (19) (27) 24 (20) (42) (19) 190 (94) 109 85 94 104 107 117 124 124 136 391 501 T
Slide 17: Capital discipline: Strong Tier I ratio despite RWA growth
Capital discipline: Strong Tier I ratio despite RWA growth Basel I 8.8 8.7 8.9 8.7 8.8 8.6 8.5 8.4 8.6 9% Target range 328 8% 308 311 285 271 275 256 263 Tier I ratio, in % RWA, 31 Mar 30 Jun 30 Sep 31 Dec 31 Mar 30 Jun 30 Sep 31 Dec in EUR bn 2006 2007 Note: March, June and September 2006 based on
Slide 18: Agenda
Agenda 1 2007: Solid in challenging times 2 4Q2007 in detail 3 Management Agenda Phase 3 4 Appendix Investor Relations 03/08 · 18
Slide 19: 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 Continue to invest in organic growth and regulatory discipline ‘bolt-on’ acquisitions Further grow our ‘stable’ businesses in Build on our co
Slide 20: We maintained cost, risk, capital and regulatory discipline
We maintained cost, risk, capital and regulatory discipline Cost Risk Capital Cost / income ratio, in % Problem loan ratio(1), in % Tier 1 ratio(2), in % Unrealised gains(3), in EUR bn 10.0 4.5 82 8.6 8.7 8.5 8.6 3.5 80 75 2.5 3.0 2.6 70 70 1.8 1.6 1.8 2.0 1.4 '03 '04 '05 '06 '07 '03 '04 '05 '06 '07
Slide 21: Investing the positive impact of Basel II
Investing the positive impact of Basel II Tier I ratio, 31 Dec 2007 Basel II Organic growth Basel I pro-forma Financing RWA increase ~9.4% Growth External growth 8.6% Covering Goodwill and Basel II Intangibles Tier I target ratio unchanged at 8-9% Dividends Rewarding of shareholders Share buybacks I
Slide 22: A funding cost advantage for Deutsche Bank
A funding cost advantage for Deutsche Bank 5-year senior CDS, in bps 1 Jul 2007 31 Jan 2008 151 139 121 86 81 67 68 68 69 35 35 35 37 14 18 19 10 12 UBS Credit JPMorgan Citi Goldman Morgan Merrill Lehman Suisse Chase Sachs Stanley Lynch Brothers Source: Bloomberg Investor Relations 03/08 · 22
Slide 23: Investing in growth by financing RWA increase
Investing in growth by financing RWA increase … Risk-weighted assets under Basel I, at year end, in EUR bn 1.6 1.8 2.5 3.2 2.9 328 275 251 216 217 2003 2004 2005 2006 2007 x.x Return on RWA* (in %) * 2003-2005: Underlying pre-tax profit in % of average RWAs; 2003-2005 RWA based on U.S. GAAP; 2006-20
Slide 24: Expanding our global platform
… and expanding our global platform Acquisitions, partnerships and organic investments 2007 / 08 UK Abbey Life portfolio China Tilney integration Partnership with Hua Xia and ETF roll-out* Harvest Fund Management USA Local incorporation of Germany Stake in Aldus Equity Deutsche Bank (Chi
Slide 25: Further growing our 'stable' businesses: sustained momentum
Further growing our ‘stable’ businesses: sustained momentum … Income before income taxes, in EUR bn GTB AWM >2x 14% PBC 3.0 2.6 1.9 1.6 1.4 2003* 2004 2005 2006 2007 * GTB adjusted for gain on sale of GSS Note: 2003-2005 based on U.S. GAAP, 2003 based on structure as of 2005, 2004-2005 based on stru
Slide 26: With strong net new money inflows
… with strong net new money inflows PCAM, in EUR bn 59 28 7 (43) (41) 2003* 2004 2005 2006 2007 * PWM not restated for Rüd Blass Investor Relations 03/08 · 26
Slide 27: Building on competitive edge in investment banking
Building on competitive edge in investment banking Sustained momentum in CB&S Robust business model 9 Net revenues, in EUR bn 9% p.a. Management stability 9 16.6 16.5 Tight risk and capital 13.9 management 11.8 11.5 9 9 Diversification by product, region and client type Strong global network
Slide 28: Despite market turbulence, megatrends continue to favour Deutsche Bank
Despite market turbulence, megatrends continue to favour Deutsche Bank Trend Features Deutsche Bank strengths Regional business diversification Growth of emerging markets Global network Globalisation Geographical boundaries disappear Global capital market access Global players act locall
Slide 29: Agenda
Agenda 1 2007: Solid in challenging times 2 4Q2007 in detail 3 Management Agenda Phase 3 4 Appendix Investor Relations 03/08 · 29
Slide 30: Number of shares for EPS calculation
Number of shares for EPS calculation In million Average At end of period FY FY 4Q 31 Dec 30 Sep 31 Dec 2006 2007 2007 2006 2007 2007 Common shares issued 522 527 529 525 528 530 Total shares in treasury (22) (28) (30) (26) (29) (29) Common shares outstanding 500 499 500 499 499 501 (1) Forward purch
Slide 31: Group headcount
Group headcount Full-time equivalents, at period end 31 Dec 2007 vs. 31 Dec 31 Mar 30 Jun 30 Sep 31 Dec 31 Dec 2006 2006 2007 2007 2007 2007 Net of Total change de-/consoli- dation CIB 14,364 16,295 16,610 17,174 16,485 2,121 462 PCAM 28,362 29,437 29,877 30,577 30,805 2,443 1,942 Corporate 38 29 26
Slide 32: Listed holdings: Unrealised net gains of EUR 3.0 bn
Listed holdings: Unrealised net gains of EUR 3.0 bn In EUR m Stake Market value (in %) 31 Dec 31 Dec 31 Mar 30 Jun 30 Sep 31 Dec 2007 2006 2007 2007 2007 2007 Daimler AG 4.4% 2,103 2,766 3,058 3,170 2,967 Allianz SE 1.7% 1,494 1,485 1,665 1,277 1,154 Linde AG 5.2% 983 1,010 1,114 929 789 Other n.m.
Slide 33: Risk
Risk VaR of CIB trading units (99%, 1 day), in EUR m Sales & Trading revenues EUR 2.8 bn EUR 2.7 bn 120 110 100 90 80 70 60 50 ∅ 68.2 ∅ 67.6 ∅ 69.3 ∅ 72.9 ∅ 77.5 ∅ 83.6 ∅ 90.5 ∅ 91.0 1Q2006 2Q2006 3Q2006 4Q2006 1Q2007 2Q2007 3Q2007 4Q2007 Investor Relations 03/08 · 33
Slide 34: Update on share buybacks
Update on share buybacks Total Total repurchases 3.3 m 5.8 m 1.4 m 0.9 m 11.3 m In % of shares issued* 0.6 % 1.1 % 0.3 % 0.2 % 2.1 % Capital consumption EUR 0.3 bn EUR 0.6 bn EUR 0.1 bn EUR 0.1 bn EUR 1.2 bn Share Share price, in EUR Number of shares, in ‘000 buybacks 120 2,500 110 Weekly 2,000 repu
Slide 35: 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. This presentation al