Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Investor Day (December 2009)
27 slides from Deutsche Bank's investor day presentation, Dec 15, 2009
Slide 1: Private & Business Clients – Investor Day
Private & Business Clients Rainer Neske Head of Private & Business Clients Investor Day Frankfurt, 15 December 2009
Slide 2: Agenda
Agenda 1 Weathering the storm 2 Positioned for profitable growth Investor Relations 12/09 · 2
Slide 3: PBC: An international franchise
PBC: An international franchise As of 30 September 2009 Branches Revenues(1), in EUR m FTE ~16,000 Private & Business Clients 2 991 2,991 23% IBIT contribution to Group (EUR 4 bn from 2005 – 2008) 930 1 200 ~1,200 EUR 6 bbn ttotal t l revenues p.a. 16 29 (2007 & 2008) ~8,000 EUR ~320 bn client
Slide 4: Financial crisis has hit PBC's business in all product areas
Financial crisis has hit PBC's business in all product areas … Average share of revenues 2007 – 2008 Investment products Credit products(1) Significantly reduced Economic recession client activity Lower new production 31% Strong margin pressure 33% 35% Deposits and payments Strong margin p
Slide 5: Translating into significant revenue and risk implications
… translating into significant revenue and risk implications Revenues, in EUR m Investment products Credit products Deposits and payments Provision for credit losses (14)% (31)% 519 540 438 403 400 510 506 424 426 366 377 253 216 144 169 124 28% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2008 2008 2008 Inv
Slide 6: A comprehensive set of revenue measures was established
A comprehensive set of revenue measures was established resulting in strong revenue pick-up Revenues,, in EUR m 75 1,410 1,389 30 (45) 1,313 18 (97) (3) 6% 4Q2008 Gain on 4Q2008 Securities DPM(2) Deposits / Credit Other(3) 3Q2009 reported sale(1) adjusted brokerage payments products reported Investm
Slide 7: PBC outperformed its competitors
PBC outperformed its competitors Net revenues, domestic retail segments, 9M2009 vs. 9M2008, in % Germany Italy Spain PBC (8)% PBC (1)% PBC 23% PBK (9)% MPS (5)% BPO 10% CBK (13)% INT (13)% SAN 2% HVB (16)% UNI (15)% BBVA 0% Source: Company data Investor Relations 12/09 · 7
Slide 8: Tight cost management resulting in operating leverage
Tight cost management resulting in operating leverage Development e e op e t s since ce 2006 006 Cost p program og a in detail deta Indexed 2006 = 100 Germany Strict FTE management in head offices 130 Cut on non sales sales-relevant relevant trainings Sales FTE Cut on marketing spends Signif
Slide 9: Several measures were introduced to mitigate increasing provision for credit losses
Several measures were introduced to mitigate increasing provision for credit losses Provision o s o for o credit c ed t losses osses Introduced t oduced cou countermeasures te easu es In EUR m New strategy for Collections & Recoveries Germany Italy Spain Other Dedicated organisation to support new
Slide 10: PBC with ongoing positive profit contribution
PBC with ongoing positive profit contribution Income co e before be o e income co e taxes ta es Short-term S o t te out outlook oo In EUR m Further one-off costs expected to be Severance(1) booked in 4Q2009 – Additional EUR ~65 65 m severance 4 payments 5 – Upfront costs for Berliner Bank 6 integr
Slide 11: Agenda
Agenda 1 Weathering the storm 2 Positioned for profitable growth Investor Relations 12/09 · 11
Slide 12: PBC's strategic agenda
PBC’s strategic agenda 1 Strengthen our leading position in the home market 2 Strengthen advisory banking in mature markets 3 Strengthen our Asian footprint 4 Increase efficiency Investor Relations 12/09 · 12
Slide 13: Norisbank: Successful integration completed
Norisbank: Successful integration completed 1 2 3 4 Profit o t development de e op e t Profile o e / Achievements c e e e ts Income before income taxes, in EUR m Profile Acquisition closed in 4Q2006 – PBC acquired branches b a c es a andd cclients, e ts, no o sta staff o or IT p platform at o 20
Slide 14: Berliner Bank: Fully integrated in 2010
Berliner Bank: Fully integrated in 2010 1 2 3 4 Market a et sshares a es in Berlin e (%)(1) Profile o e / Achievements c e e e ts Profile Berliner Sparkasse Significantly improved PBC’s penetration in the capital p due to minimal client overlap p ((4%) %) Postbank Acquisition closed in 1Q2007 –
Slide 15: Deutsche Bank and Postbank – A value creating cooperation
Deutsche Bank and Postbank – 1 2 A value creating cooperation 3 4 Illustrative p pre-tax impact p Fully on track to deliver on targets, targets expected Deutsche Bank run-rate pre-tax impact of EUR ~130 m within Financial 3-4 years: Postbank impact − Cost / revenue: ~60%/~40% − Deutsche Bank / Pos
Slide 16: Option for PBC to become a clear leader in Germany
Option for PBC to become a clear leader in Germany 1 2 and to close the gap to international competitors 3 4 German retail peers European retail players IBIT, FY2008, in EUR bn Domestic net revenues, FY2008, in EUR bn German Saving 22 2.2 Intesa SanPaolo 13.2 3 Banks Santander 8.7 1.0 Cooperation Un
Slide 17: Potential joint IT Strategy would contribute to further efficiency improvement
Potential joint IT Strategy would contribute to further 1 2 efficiency improvement 3 4 PBC IT transformation Build new IT target platform starting from the core Support lean processes through SOA approach Use advantages of standard software for lean and industrialised processes Build new sales
Slide 18: Further strengthen advisory banking in mature markets
Further strengthen advisory banking in mature markets 1 2 Invested assets, in EUR bn 3 4 Development / Net new money Regional distribution Securities Insurances Deposits As of 30 Sep 2009 203 196 189 182 189 Europe 176 26% Germany 2006 2007 2008 1Q 2Q 3Q 74% 4% 2009 NNM, in EUR bn 6 19 15 (2) 0 1 In
Slide 19: Branch expansion in India and stake increase in Hua Xia Bank
Branch expansion in India and the stake increase in 1 2 Hua Xia Bank will boost our Asian franchise profit 3 4 PBC’s Asia franchise network Profile DB branches China City with Hua Xia Bank branch(es) 17.1% stake in Hua Xia Bank(1) (EUR ~1 bn market capitalisation) – largest shareholder Hua Xia i
Slide 20: Strategic investments will deliver savings of more than EUR 200 m
Strategic investments will deliver savings of more than 1 2 EUR 200 m 3 4 Charges for severance and Net FTE strategic efficiency measures reduction Cost savings Timing Charges(1), Measure Target 2012 Completed Target 2012, in EUR m in EUR m 4Q2008 90 Middle office Italy / 300 35 Berliner Bank p
Slide 21: Expected market normalisation and initiated measures will boost PBC's bottom line
Expected market normalisation and initiated measures will boost PBC’s bottom line Investment products Credit products Efficiency Revenue margin, investment Credit revenues after risk(1), IBIT impact from efficiency products, in bps Indexed, 1Q2008 = 100 initiatives, in EUR m Charges g (2) Savings ~2
Slide 22: Phase 4: IBIT potential
Phase 4: IBIT potential in EUR bn Phase 4 potential 2011 Corporate Banking & Securities 63 6.3 Global Transaction Banking 1.3 Asset and Wealth Management 1.0 Private & Business Clients 1.5 Total 10.0 Note: Figures do not add up due to rounding differences Investor Relations 12/09 · 22
Slide 23: Positioned for profitable growth
Positioned for profitable growth Option for undisputable leadership in Germany Ongoing profitable growth of the European franchise, focusing on the affluent segment Asian high growth option Si ifi Significant t profit fit increase i with ith already l d implemented i l t d measures Investor Relation
Slide 24: Appendix
Appendix \\ \ tomo: | | re [| & A Passion to Perform. Deutsche Bank
Slide 25: Overview: PBC's network
Overview: PBC’s network 30 September 2009 Germany Italy Iberia Poland Belgium Asia Total Invest. Assets 145.2 21.8 10.4 2.3 15.9 0.7 196.4 in EUR bn epos ts(1) Deposits 84 2 84.2 79 7.9 57 5.7 23 2.3 98 9.8 03 0.3 110 2 110.2 in EUR bn Loans 62.7 15.7 14.3 3.5 0.0 0.3 96.4 in EUR bn Customers 10.2 2
Slide 26: Reconciliation of revenue components to total net revenues
Reconciliation of revenue components to total net revenues Revenues, Private & Business Clients, in EUR m 2008 2009 1Q 2Q 3Q 4Q 1Q 2Q 3Q Investment Products 403 400 366 253 275 281 257 C dit P Credit Products d t 510 519 506 540 569 571 615 Deposits & Payments 424 426 438 377 373 415 407 Other 117 1
Slide 27: Cautionary statements
Cautionary statements This presentation contains forward-looking statements. Forward-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 based on plans, estimates and pro