Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Non-Deal Roadshow (November 2010)
43 slides from Deutsche Bank's roadshow presentation, Nov 8, 2010
Slide 1: Business Development 3Q2010
Deutsche Bank Business Development 3Q2010 Dr Josef Ackermann Dr. Chairman of the Management Board and a d tthe eGGroup oup Executive ecut e Committee Co ttee Deutsche Bank Roadshow Singapore - 11/2010 financial transparency. Investor Relations Dr. Josef Ackermann Roadshow Singapore, 8 November 2010
Slide 2: Economic environment further improved ...
Economic environment further improved ... … and continued positive … driving growth in commodity Return to solid GDP growth ... business outlook ... prices Real GDP growth, in % Purchasing Managers Index, in % Indexed, 1 Jan 2007 = 100 2007 2008 2009 EEMU China U.S. Prec. Metals Agriculture Industri
Slide 3: ... particularly, Germany with strong dynamics ...
... particularly, Germany with strong dynamics ... Economy with “V “V-shaped” shaped” recovery ... … and structural improvement of labour market German GDP growth, real, in % Unemployment rate, in % Germany EU-16 U.S. 11 7 10 5 9 3 8 7 1 6 (1) 5 (3) 4 (5) 3 2002 2010e 2002 Aug 2010 Source: DB Resear
Slide 4: ... also reflected in equity markets
... also reflected in equity markets DAX outperforming Euro Stoxx Volatility in Germany back to pre-crisis pre crisis levels Indexed, 1 Jan 2007 = 100 VDAX, in ppt DAX Euro Stoxx 70 120 110 60 100 50 90 40 80 70 30 60 20 50 40 10 Jan 2007 Oct 2010 Jan 2007 Oct 2010 Source: Bloomberg Deutsche Bank Ro
Slide 5: However, sovereign debt concerns not yet diminished ...
However, sovereign debt concerns not yet diminished ... … and ‘PIGS’ countries facing continued high funding Sovereign debt remains high in key economies ... charges Fiscal deficit in % of GDP CDS spreads Greece Italy 2007 2008 2009 2010e 2011e Spain Portugal 1000 900 U.S. UK Eurozone Japan 800 (0.6
Slide 6: ... and regulatory reforms remain a major topic for banks
… and regulatory reforms remain a major topic for banks Content Impact ― Increased minimum Core Tier 1 ratio Basel ― Higher core Tier 1 capital requirements 2.5 / III ― Higher RWA charges (e.g. securitization, CVA) OTC ― Central counterparty clearing for standardized derivatives derivatives ― Increa
Slide 7: Agenda
Agenda 1 Group results 2 Key current issues 3 Recap on Postbank Deutsche Bank Roadshow Singapore - 11/2010 financial transparency. 7 Investor Relations Dr. Josef Ackermann
Slide 8: Strong third quarter excluding the Postbank related charge
Strong third quarter excluding the Postbank related charge 3Q2010 ex 3Q2010 Postbank effect(3) 3Q2009 Income before income taxes (in EUR bn) (1.0) 1.3 1.3 Profita- Net income (in EUR bn) (1.2) 1.1 1.4 bility Pre-tax RoE (target definition)(1) 13% 13% 14% Diluted EPS (in EUR) (1.75) 1.70 1.92 30 Sep
Slide 9: Net revenues
Net revenues I EUR bn In b Postbank effect Charges related to Ocala Funding LLC(1) Specific property impairment Mark-downs 0.4 0.2 0.5 0.7 2.3 0.5 0.4 0.3 04 0.4 1.0 0.3 0.1 2.3 0.2 90 9.0 01 0.1 22 4 22.4 21 1 21.1 7.2 7.9 7.2 (2) 7.2 (3) 5.5 5.0 (4) 1Q 2Q 3Q 4Q 1Q 2Q 3Q Jan-Sep Jan-Sep 2009 2010 2
Slide 10: Income before income taxes
Income before income taxes I EUR bn In b 5.6 (2) 4.4 2.3 2.8 1.8 1.5 1.3 (2) 1.3 1.3 33 3.3 0.8 (1.0) 1Q 2Q 3Q 4Q 1Q 2Q 3Q J S Jan-Sep J S Jan-Sep 2009 2010 2009 2010 Pre tax return on equity(1), in % Pre-tax (3) (3) 22 15 15 9 30 15 (10) / 13 17 11 / 18 Note: Figures may not add up due to rounding
Slide 11: Capital ratios and risk-weighted assets
Capital ratios and risk-weighted assets 12.6 11.7 11.3 11.5 11.5 11 0 11.0 11.2 10.2 Target: ≥10% 8.7 78 7.8 81 8.1 7.6 7 6 7.5 7.5 7.6 7.1 316 295 288 292 303 277 273 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2009 2010 Tier 1 ratio, in % Core Tier 1 ratio, in % RWA, in EUR bn Note: Tier 1 ratio = Tier 1 capital / RWA;
Slide 12: Funding and liquidity
Funding and liquidity I EUR b In bn Funding sources overview Liquidity position 30 Jun 2010 (Total: EUR 911 bn) 230 — Overall balance sheet impacted by 30 Sep 2010 (Total: EUR 919 bn) 207 strong FX movements 178 171 — Reduction in stable funding 167 163 sources consistent with lower term funding req
Slide 13: Positive contribution from all segments
Positive contribution from all segments I Income before b f income i taxes, t in i EUR m 3Q2010 3Q2009 3Q2010 acquisition impact / Postbank effect 1,101 CB&S 981 214 13(1) GTB 201 78 52(2) AWM 134 245 PBC 149 (2,337) 2,338(3) CI 117 (349) C&A (267) (1) ABN AMRO Netherlands impact (2) PWM: Sal Sal. O
Slide 14: Solid Sales & Trading revenues
Solid Sales & Trading revenues I EUR bn In b Charges related to Ocala Funding LLC Mark-downs 0.4 Net revenues 0.8 0.4 0 4 0.4 10 1.0 0.3 0.1 0.4 0.3 0.1 10.3 10.4 01 0.1 0.0 47 4.7 4.1 0.2 3.3 3.0 (1) 2.9 2.8 1.9 1Q 2Q 3Q 4Q 1Q 2Q 3Q Jan-Sep Jan-Sep 2009 2010 2009 2010 Note: Prior periods have been
Slide 15: CB&S rebounded, GTB performed in line with guidance
CB&S rebounded, GTB performed in line with guidance Income before income taxes, in EUR m Corporate Banking & Securities Global Transaction Banking Negative goodwill(1) 478 2,589 227 270 214 187 201 180 1,318 981 1,101 823 119 779 398 1Q 2Q 3Q 4Q 1Q 2Q 3Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2009 2010 2009 2010 (1)
Slide 16: AWM continued the positive trend ...
AWM continued the positive trend ... IIncome before b f income i taxes, t in i EUR m Asset Management Private Wealth Management R Reversal l off iimpairment i t DWS S Scudder dd xx IBIT ex S Sal. l OOppenheim h i / BHF 349 27 77 47 96 84 56 32 58 38 Sal. Oppenheim / BHF (52) 26 (111) (170) (3) (6) 1
Slide 17: ... as did PBC
... as did PBC P i t & Business Private B i Cli Clients, t iincome b before f iincome ttaxes, iin EUR m Severance(1) 11 7 15 6 12 150 233 245 206 189 149 72 55 47 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2009 2010 (1) Includes direct severance booked in business and allocations of severance booked in infrastructure Deu
Slide 18: Performance vs. targets
Performance vs. targets I Income before b f income i taxes, t in i EUR bn b Phase 4 9M2010 potential reported 2011 Acquisition impact Corporate Banking & 4.5 6.3 Securities Global Transaction 9M2010 excluding ABN AMRO Netherlands 0.8 1.3 Banking acquisition: EUR 0.6 bn Asset and Wealth 9M2010 exclud
Slide 19: Despite the expected technical pressure from rights issue ...
Despite the expected technical pressure from rights issue ... Share price Sh i d development l tF From 8 S September t b tto 8 O October, t b adjusted for rights value Deutsche Bank Peer Index 46.6 780 Announcement: Capital Increase/Postbank Offer 760 Capital Increase Completed 44.6 740 720 Peer Ind
Slide 20: … the share price development ytd is still ahead of peers
… the share price development ytd is still ahead of peers Total T t l shareholder h h ld return, t iin LFC Indexed, 1 Jan 2010 = 100 Δ 1 Jan 2010 - 3 Nov 2010 120 110 11% 100 (9)% 90 International (10)% peers(1) 80 70 60 1 Jan 31 Jan 28 Feb 31 Mar 30 Apr 31 May 30 Jun 31 Jul 31 Aug 30 Sep 3 Nov (1)
Slide 21: Agenda
Agenda 1 Group results 2 Key current issues 3 Recap on Postbank Deutsche Bank Roadshow Singapore - 11/2010 financial transparency. 21 Investor Relations Dr. Josef Ackermann
Slide 22: The Basel Committee revealed details of Basel 3 ...
The Basel Committee revealed details of Basel 3 ... 12% Market demand on top of Regulatory Requirement/ Potential Systemic Banks Surcharge ? 10% Countercyclical Buffer 0.0 – 8% 0.0 0 0– 2.5% Minimum 7% 0.0 – 2.5% Capital Conservation Buffer 2.5% 6% 1.88% 2.50% 0 63% 0.63% 1 25% 1.25% 4% Min Core Tie
Slide 23: … impacting the Bank's future RWAs
… impacting the Bank’s future RWAs(1) … IIn EUR bn b Impact simulation Targeted management action In EUR bn ‘RWA RWA — Further reduction of legacy positions RWA equivalent’ (securitizations, correlation trading) Basel 2.5(2) — Reduce trading book exposures to certain 85 85 (trading book rules) Emerg
Slide 24: … and Core Tier 1 Capital
… and Core Tier 1 Capital(1) Si l ti Simulation, iin EUR bn b xx Core Tier 1 ratio Without Phase-in 34 P fforma RWA Pro P forma Pro f Core C Tier Ti 1 capital it l and d ratios ti 7.6% 8.5% 7.0% 8.1% 5 45 6 188 529 11 8 (8) Capital formation allows strong 21 — Capitalization 64 — Dividend 277 — Grow
Slide 25: We specified the impact of Complexity Reduction Program
We specified the impact of Complexity Reduction Program I EUR bn In b Targeted impact of Complexity Reduction Program over time Required cost-to-achieve 1.0 In-year cost savings Net savings 0.5 1.0 0.8 0.2(3) n.m. 0.5(2) 0.8 03 0.3 0.3 03 0.3 0.3 0.0 2010(1) 2011 2012 Note: Adjusted for PBC Transfor
Slide 26: Agenda
Agenda 1 Group results 2 Key current issues 3 Recap on Postbank Deutsche Bank Roadshow Singapore - 11/2010 financial transparency. 26 Investor Relations Dr. Josef Ackermann
Slide 27: Executing on Management Agenda Phase 4
Executing on Management Agenda 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 Deutsch
Slide 28: Rationale for Postbank acquisition
Rationale for Postbank acquisition This slide belongs to the free writing prospectus presentation as of 22 Sep 2010 — Customer bank (EUR 121 bn assets)(1): Leverage Large, lean, profitable What we get — Non-customer bank (EUR 121 bn assets): Run-off Large, capital consumptive and less profitable — B
Slide 29: PBC ambition level
PBC ambition level I Income before b f income i taxes, t in i EUR b bn This slide belongs to the free writing prospectus presentation as of 22 Sep 2010 >3 ~1(2) 0.1 Assumptions: 1.5 Full run-rate, i.e. full synergies realized No further cost-to-achieve PPA effects ff t fully f ll amortized ti d No m
Slide 30: Potential for mid-term capital relief from run-off of non-customer assets
Potential for mid-term capital relief from run-off of non- customer t assets t This slide belongs to the free writing prospectus presentation 30 June 2010, in EUR bn as of 22 Sep 2010 Operational p risk illustrative 242 Non- Customer 71 Bank Non- Aspire to free-up customer capital and redeploy at Cu
Slide 31: PBC / Postbank to become a clear leader in Germany
PBC / Postbank to become a clear leader in Germany and to close l the h gap vs. llarge E European players l This slide belongs to the free writing prospectus presentation as of 22 Sep 2010 German retail market European retail peers Domestic clients, Dec 2009, in million Domestic net revenues in reta
Slide 32: Additional information
Deutsche Bank Additional information
Slide 33: Provision for credit losses
Provision for credit losses I EUR m In Related to IAS 39 reclassified assets 2,070 1,000 526 544 560 868 362 262 243 1 129 1,129 492 584 308 329 249 233 159 193 1Q 2Q 3Q 4Q 1Q 2Q 3Q J S Jan-Sep J S Jan-Sep 2009 2010 2009 2010 Thereof: CIB 357 779 323 357 90 77 179 1,459 346 169 221 214 201 174 175 1
Slide 34: Noninterest expenses
Noninterest expenses I EUR bn In b In EUR m Compensation and benefits Compensation and benefits General and administrative expenses p PWM: Sal. Oppenheim / BHF 88 GTB: GTB ABN AMRO 24 Other non-comp expenses(1) General and admin. expenses PWM: Sal. Oppenheim / BHF 155 17.0 GTB: ABN AMRO 81 1
Slide 35: Loan book
Loan book I EUR b In bn xx IAS S 39 impact on C CIB loan book 8% 292 283 276 268 270 CI 263 261 10 10 14 13 13 13 11 35 32 38 37 35 34 34 (2) CIB 154 (2) 147 154 144 137 133 136 (1) (1) 108 110 113 115 123 128 (1) 127 PCAM 31 Mar 30 Jun 30 Sep 31 Dec 31 Mar 30 Jun 30 Sep 2009 2010 Germany excl. excl
Slide 36: Pro-forma impact of IAS 39 reclassifications
Pro-forma impact of IAS 39 reclassifications I EUR m In Total Total FY2008 - 2Q2009 - 1Q2010 - FY08- 3Q2010 FY2008 - 1Q2009 4Q2009 2Q2010 FY09 3Q2010 Incremental reported income(1) (162) (1,188) (1,350) (211) (164) (1,725) Fair value P&L impact of reclassified 4,653 (231) 4,422 (278) (93) 4,051 asse
Slide 37: Monoline update
Monoline update Reduction since 1Q2009 peak Exposure adequately reserved In EUR bn(1) In EUR bn, as of 30 Sep 2010 Fair value after CVA CVA Fair value after CVA CVA 9.1 (51)% 7.6 5.9 5.6 Net exposure to non-investment grade: 5.2 5.1 6.8 4.5 EUR 1.0 bn 5.5 47 4.7 4.0 2.7 3.7 4.0 3.2 1.0 2.3 0.8 06 0.
Slide 38: Value of Level 3 assets
Value of Level 3 assets(1) Asset classes 3Q2010 development In EUR bn — Decrease of EUR 11 bn mainly due to: — Transfer of certain derivative assets from level 3 into level 2 due to 56 58 3 improved observability of underlying 3 4 47 market data used to value these 3 6 6 assets 43 5 — Changeg in fai
Slide 39: Postbank related charge
Postbank related charge g Stake (incl. MEB(1)), in EUR m, as of 30 September 2010 Stake revaluation effect ― According to the former IFRS 3 rules + Book value initial stake 958 the effect would have been part of + Book value MEB 2,825 acquisition cost thereby impacting + Book value shares acquired i
Slide 40: Reconciliation of the Postbank effect
Reconciliation of the Postbank effect 3Q2010 Excl. As reported Postbank effect Postbank effect Net revenues (in ( EUR m)) 4,985 98 (2 338) (2,338) 7,324 32 Income before income taxes (in EUR m) (1,048) (2,338) 1,290 Net income (in EUR m) (1,218) (2,338) 1,119 Tier-1 capital (in EUR bn) 31.8 (1.8) 33
Slide 41: Timeline Public Tender Offer (PTO)
Timeline Public Tender Offer (PTO) E Expected t d schedule h d l Public tender offer (PTO) Review of PTO by BaFin Offer p period Add. offer period i d (4 weeks) (2 weeks) Analyst meeting / Announce- press Publication and start ment conference of offer document 12 Sep 13 Sep 20 Sep 21 Sep 22 Sep 29 S
Slide 42: A retail powerhouse
A retail powerhouse Facts and figures German branch networks 30 June 2010 / 1H2010 Deutsche Bank: 774 Pre- PBC Postbank: 1,119 Postbank integration global PBC + PB Berliner Bank: 61 Clients, in m 14.5 14.0(1) 28.5 norisbank: 94 Branches 1,778 1,119 2,897 Mobile Sales Force >3,000 >4,000(1) >7,000 Po
Slide 43: 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