Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Bank of America Banking & Insurance CEO Conference 2010
30 slides from Deutsche Bank's conference presentation, Sep 30, 2010
Slide 1: Building a retail powerhouse in Europe's biggest economy
Deutsche Bank This document is an update of the presentation given by Dr. Josef Ackermann and Stefan Krause in the Analyst and Investor Call on 13 September 2010. It has been updated on 22 September 2010 to reflect the final subscription price for new Deutsche D t h B Bank k shares h announced d on
Slide 2: Key terms of transactions
Key terms of transactions Voluntary public tender offer Rights issue Offer price: 3-month volume-weighted Gross proceeds: EUR 10.2 bn average price (EUR 25.00) (committed) Offer period expected to start in early 2:1 (old:new) subscription ratio October Deutsche Bank aims to consolidate Full dividend
Slide 3: Financial impact: Key data
Financial impact: Key data B Based d on 2Q2010 and d methodology th d l explained l i d on page 15 — Ambition level of combined pre-tax profit for PBC / Postbank at EUR > 3 bn — EUR 1 bn of targeted run-rate synergies p.a. identified so far — Targeted restructuring cost of EUR 1.4 bn Profitability —
Slide 4: Setting the stage
Setting the stage — Successful recalibration of CB&S business model Executing on — Continued build-up in Asia Management — Successful franchise investments in Germany and Europe: Sal. Oppenheim, parts of Agenda ABN Amro Phase 4 — Postbank will increase earnings capacity of non-investment banking bus
Slide 5: Agenda
Agenda 1 Executing on Management Agenda Phase 4 2 Transactions and financial impact 3 Retail powerhouse in Europe’s biggest economy Deutsche Bank Dr. Josef Ackermann financial transparency. 5 Investor Relations 30 September 2010
Slide 6: We introduced Phase 4 in December 2009 ...
We introduced Phase 4 in December 2009 ... 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 Deu
Slide 7: ... and we are executing on it
… and we are executing on it Phase 4 Agenda — Successful recalibration of CB&S business model with improved p risk-return Increase CIB profitability profile with renewed risk and — Integration of CIB under single leadership offers significant synergy potential balance sheet discipline — Top 5 positi
Slide 8: Rationale for Postbank acquisition
Rationale for Postbank acquisition — 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 — Become the undisputed leader in German retail banking — Achieve critical mass and
Slide 9: Strategic rebalancing of earnings mix
Strategic rebalancing of earnings mix Corporate and Investment Private Clients and Asset Bank (CIB) Management (PCAM) Corporate Banking & Global Transaction Asset and Wealth Private & Business Securities Banking Management Clients ABN Amro Netherlands Private Global Corporate Asset Wealth Markets Fi
Slide 10: PBC ambition level
PBC ambition level I Income before b f income i taxes, t in i EUR bn b >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 material impact from non- customer bank Published Postbank customer P4F(1) Envisag
Slide 11: Agenda
Agenda 1 Executing on Management Agenda Phase 4 2 Transactions and financial impact 3 Retail powerhouse in Europe’s biggest economy Deutsche Bank Dr. Josef Ackermann financial transparency. 11 Investor Relations 30 September 2010
Slide 12: Rationale for transactions
Rationale for transactions — Use time window, thus pass 30% threshold and qualify as voluntary public tender offer (PTO) Why do with releasing effect public tender — Optimize value for shareholders by reducing total acquisition costs by up to EUR 1.6 bn offer now? — Aim for early consolidation, pote
Slide 13: Timetable for the transactions
Timetable for the transactions 2010, non-linear scale Public tender offer (PTO) Review of PTO by BaFin Analyst Offer period Add. offer period Settle- g/ meeting (4 weeks) (2 weeks) Announce- ment Announce- press mentt off off Publication ment conference take-up PTO(1) of offer document 12 S Sep 13 S
Slide 14: Why do public tender offer (PTO) now?
Why do public tender offer (PTO) now? Illustrative Ill t ti economic i purchase h price i value l Add-on in Assuming comparison, in EUR bn Assuming case of free float remaining 100% free float acquisition at purchased at take-up in PTO put put price price ((2)(3) )( ) 1.6 8.0 1.7 6.4 1.2 (0.7)(1) 1.
Slide 15: Methodology for Tier 1 capital impact assessment
Methodology for Tier 1 capital impact assessment Capital — Calculated with the fully underwritten subscription price of EUR 33.00 for 308.64 m shares, which equals increase EUR 10.2 bn of gross proceeds; net capital increase of EUR 9.9 bn reflects dividend accrual assumption of EUR 0.75 pper new sha
Slide 16: Estimate of Tier 1 capital impact from Postbank consolidation
Estimate of Tier 1 capital impact from Postbank consolidation As off 30 JJune 2010 A 2010, outside-in, t id i b based d on 21% ttake-up k i public in bli ttender d offer and methodology explained on page 15, in EUR bn Capital C it l consumption ti att currentt Add. capital Add it l ffor Revaluation
Slide 17: Potential capital impact of capital increase and Postbank consolidation
Potential capital impact of capital increase and Postbank consolidation, lid i b basedd on 2Q2010(1) Tier 1 ratio Core Tier 1 ratio Total Tier 1 capital: EUR 42 bn = 11.7% Total RWA: EUR 362 bn EUR 9.9 bn(2) 11.7% 11.3% EUR (7 (7.7) b (3) 7) bn 8.1% 7.5% 30 Jun 2010 Net capital Estimated incremental
Slide 18: Postbank balance sheet: Non-customer vs. customer bank
Postbank balance sheet: Non-customer vs. customer bank I EUR bn, In b 30 JJun 2010 242 242 Investment securities 39 Deposits from other banks Includes Structured Credit Portfolio (“SCP”) 63 of EUR 5.6bn Non- 37 Trading liabilities incl. hedge derivatives Customer Bank Equity & subordinated Trading a
Slide 19: 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 30 June 2010, in EUR bn illustrative Operational p risk 242 Non- Customer 71 Bank 7.7 Non- Aspire to free-up customer capital and redeploy at Customer C t assets higher RoE(1) Bank Customer assets A Assets t RWA Total inc
Slide 20: Agenda
Agenda 1 Executing on Management Agenda Phase 4 2 Transactions and financial impact 3 Retail powerhouse in Europe’s biggest economy Deutsche Bank Dr. Josef Ackermann financial transparency. 20 Investor Relations 30 September 2010
Slide 21: Germany: Healthy market environment
Germany: Healthy market environment Germany with strong economy, … … affluent private customers, … GDP, 2009, in USD bn Disposable income of private households, 2007, in EUR bn 3,235 1,515 2,635 2,198 1,197 1,194 2,089 981 1,466 616 GER FR UK IT ES GER UK FR IT ES ... favourable labour market ... ..
Slide 22: 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 German retail market European retail peers Domestic clients, Dec 2009, in million Domestic net revenues in retail business, FY2009, in EUR bn ~50 Intesa SanPaolo 10.4 ~30 Santander 8.8 Unicred
Slide 23: 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 24: Complementary business propositions ...
Complementary business propositions ... Advisory Banking Consumer Banking Premium — Advisory Banking — Easy accessibility proposition ( (branch / online)) — Relationship — Leadership for price- dvisory management with conscious private and excellent service levels Ad business clients — Full range pr
Slide 25: ... reflected in different business mix
… reflected in different business mix Market share(1) Revenues(2) In % In % of total Current ~8-10% ~65-75% Account / Saving ~5-6% % ~50% Loan / ~3-4% ~20-30% Mortgages / Home Savings ~3-4% ~25% ~4-5% ~2-10% Investments / Insurance % ~10-14% ~25% (1) FMDS Data (and eFinancLab) 2009 analysis (508) by
Slide 26: Synergy targets and cost-to-achieve estimate
Synergy targets and cost-to-achieve estimate I EUR m In Outside-in view Split by type Split by category Cost-to-achieve ~1 bn p.a. ~1 bn p.a. ~1.4 bn Revenue synergies 100 Sales 100 Revenue ~250 250 Cross divisional synergies Cross-divisional 100 PBC P Premium i P Processes 260 synergies DB / PB coo
Slide 27: Ambition level for the combined retail franchise
Ambition level for the combined retail franchise R Revenues off EUR >10 10 bn b Income before income taxes of EUR >3 3 bn Cost / income ratio of <60% Pre-tax RoE of >20% Top 5 retail deposit taker in Europe Assumptions: Full run-rate, i.e. full synergies realized PPA effects fully amortized No furth
Slide 28: Impact on Group financial targets
Impact on Group financial targets On balance, our assumptions(1) still support EUR 10 bn pre-tax profit t target t for f 2011(2) From toda today’s ’s perspecti perspective, e the acq acquisition isition does not change this target We maintain W i t i our Tier Ti 1 ratio ti ttargett off att least l t
Slide 29: 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
Slide 30: Disclaimer
Disclaimer European Economic Area This document does not constitute an offer to sell, or the solicitation of an offer to buy or subscribe for, any securities, and cannot be relied on for any investment contract or decision. This document does not constitute a prospectus within the meaning of Art. 13
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