Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Non-Deal Roadshow (November 2015)
42 slides from Deutsche Bank's roadshow presentation, Nov 18, 2015
Slide 1: Sustainability at Deutsche Bank
Deutsche Bank Sustainability at Deutsche Bank Paris / London, 16-18 November 2015 Viktoriya Borysova (Group Sustainability) Dr. Antje Stobbe (Investor Relations) Deutsche Bank Viktoriya Borysova / Dr. Antje Stobbe 0 16-18 November 2015
Slide 2: Agenda
Agenda 1 Strategy 2020 2 Governance and controls 3 Sustainability: Risks and opportunities 4 Staff 5 Further information (Appendix) Deutsche Bank Viktoriya Borysova / Dr. Antje Stobbe 1 16-18 November 2015
Slide 3: In the next three years, we intend to make Deutsche Bank…
In the next three years, we intend to make Deutsche Bank… — Materially reduce number of products, clients and locations … simpler & — Simplify structure with fewer legal entities more efficient — Manage towards competitive cost structure based on a more efficient infrastructure — Exit from higher ri
Slide 4: Strategic priorities of Strategy 2020
Strategy 2020: It is all about execution Targeted Execution plan 2018 financial impact Reposition — RWA and CRD4 exposure reductions Investment — Split division along client lines — Adjusted Costs(1) Strategic priorities of Strategy 2020 Banking — Exit selected Global Markets business lines and mark
Slide 5: Reorganised our operating divisions along our client lines
Reorganised our operating divisions along our client lines Current segments Future segments (effective 1Q2016) Sales & Trading Debt Global Markets Corporate Banking & Sales & Trading Equity Securities Corporate Finance Corporate and Investment Global Transaction Banking Global Transaction Banking Ba
Slide 6: ~9 k internal FTE reductions planned
~9 k internal FTE reductions planned Internal FTE, in 000s ~105 ~103 ~3 ~(20) ~86 ~(5) ~2 ~(6) ~77 ~(9) Total reduction in internal FTE FY15 Planned GTO Pro-forma Planned Baseline Business Business Infrastructure 2018 Plan Estimate(1) internalisation incl. GTO disposals(2) incl. reductions growth 20
Slide 7: DB at a glance – where we are going
DB at a glance – where we are going Reported Group financial targets 2014 2018 2020 Simpler & CET 1 ratio 11.7% ≥12.5% more efficient Leverage ratio 3.5% ≥4.5% ≥5.0% Less risky Post-tax RoTE 3.5% >10% Aspiration to deliver competitive payout Dividend per share 0.75 ratio Better capitalised Costs(1),
Slide 8: One fully accountable new leadership team with all businesses and functions represented
One fully accountable new leadership team with all businesses and functions represented John Cryan Jürgen Fitschen Co-Chief Executive Officer Co-Chief Executive Officer Kim Hammonds Stuart Lewis Sylvie Matherat Chief Operating Officer Chief Risk Officer Chief Regulatory Officer Quintin Price Garth R
Slide 9: Control issues must be resolved
Control issues must be resolved In EUR bn Litigation — Insufficient controls and poor Reported net income behavior led to enormous litigation burden — Robust investment required to strengthen weak control infrastructure 2.6 4.0 — Know-Your-Customer and Anti- Money-Laundering infrastructure a priorit
Slide 10: Agenda
Agenda 1 Strategy 2020 2 Governance and controls 3 Sustainability: Risks and opportunities 4 Staff 5 Further information (Appendix) Deutsche Bank Viktoriya Borysova / Dr. Antje Stobbe 9 16-18 November 2015
Slide 11: Continued strengthening of ‘Three Lines of Defense’ control framework
Continued strengthening of ‘Three Lines of Defense’ control framework Strengthening of 1st LoD through further build-out of Divisional Control Units, consolidation and acceleration of control enhancements, improved risk and control management processes incl. systematic business practice reviews and
Slide 12: Deutsche Bank’s internal control governance for Non-Financial Risks
Deutsche Bank’s internal control governance for Non-Financial Risks Management Board 1st LoD – 2nd LoD – Independent Control 3rd LoD – Risk owner Audit — 2nd LoD Global Chief Risk Chief Finance Chief Chief functions Co-Chief Markets Officer Officer Regulatory Administrative responsible Executive for
Slide 13: Know Your Customer Policy Framework: Key principles and achievements
Know Your Customer Policy Framework: Key principles and achievements Achievements — Even though significant progress had been made to come up with a consistent KYC Policy Robust, harmonised Framework, there still was some room for 1 and standardised improvement; especially among divisional KYC Polic
Slide 14: Anti-Money Laundering risk parameters: 2015 achievements
Anti-Money Laundering risk parameters: 2015 achievements Objective Establish unified risk parameters to harmonise our bank wide AML approach Initial situation Achievements until 2015 — Detailed AML product category risk — Selective product risk assessments Product Risk assessment for all business di
Slide 15: Targeted initiatives help embed a strong risk culture
Targeted initiatives help embed a strong risk culture Comprehensive training Governance and processes ― Ongoing refinement of comprehensive mandatory Risk ― Bank-wide project launched in 2015 to ensure risk culture Culture training curriculum; 2015 saw the roll-out of: themes are included in the Ban
Slide 16: Agenda
Agenda 1 Strategy 2020 2 Governance and controls 3 Sustainability: Risks and opportunities 4 Staff 5 Further information (Appendix) Deutsche Bank Viktoriya Borysova / Dr. Antje Stobbe 15 16-18 November 2015
Slide 17: Understanding today’s Sustainability Concept…
Understanding today’s Sustainability Concept… Starting point — Business continuity/ data security — In-house eco-efficiency — Shareholder value — Resource efficiency — Stakeholder value — Climate resilience — Longterm shared value — Conservation of natural resources — Transparency (such as water, fo
Slide 18: Sustainability Highlights in 2014 and beyond
Sustainability Highlights in 2014 and beyond Strengthened Global Reputational Risk Framework significantly through a substantial revision of the underlying Principles and Guidelines Risk Expanded the Environmental and Social (ES) Guidelines as part of DB Reputational Risk Framework Manage- by adding
Slide 19: Managing Reputational Risk
Managing Reputational Risk Governance structure strengthened Operating responsibly means weighing the risks against the value created Group Reputational Risk Committee (GRRC) Ensures the oversight, governance and coordination of reputational risk management Reviews and opines on matters referred by
Slide 20: Environmental and Social provisions
Environmental and Social provisions Part of Reputational Risk Management Embedding Environmental and Social (ES) Responsibility — Define consistent standards for the Global Reputational Risk Principles identification, assessment and management of reputational risk matters Global Reputational Risk Gu
Slide 21: Environmental and Social provisions: Transactions reviewed
Environmental and Social provisions: Transactions reviewed Transactions/clients reviewed from an ES perspective Sectoral spilt 1-3Q2015 Others 1,250 Public Admini- 5% Consumer 1,094 stration 4% 2% Financials 10% 721 406 Natural Resources Industrials & 43% Technology 2012 2013 2014 2015 (1-3Q) 36% Tr
Slide 22: Environmental and Social risk
Environmental and Social risk Key positions on sensitive topics Agricultural — We believe financial products are essential for markets to be efficient and we support increased transparency and appropriate legislation. Numerous studies have found no convincing evidence that commodities financial acti
Slide 23: Environmental and Social risk
Environmental and Social risk Human Rights Policy Statement — Deutsche Bank is fully committed to its responsibility to respect Human Rights — A number of our internal documents including the Deutsche Bank Code of Business Conduct and Ethics reflect this commitment — We are guided by a wide range of
Slide 24: Managing ESG and sustainable finance funds for our clients
Managing ESG and sustainable finance funds for our clients ― Individuals’ and institutional demand for ESG/sustainable/impact investment opportunities continues to rapidly grow ― ESG can reduce risk and improve return profiles; sustainable/impact investments are a growing investment category ― AuM i
Slide 25: Asset Management: Centre for Sustainable Finance
Asset Management: Centre for Sustainable Finance Mission statement ― The Centre for Sustainable Finance will aim to be a global thought leader and catalyst for sustainable finance by delivering state-of-the-art research and collaborating with key stakeholders to develop market solutions to social an
Slide 26: Green Climate Fund of UNFCCC
Green Climate Fund of UNFCCC Deutsche Bank chosen to support Green Climate Fund Green Climate Fund (GCF) Founded within the framework of the United Nations Framework Convention on Climate Change (UNFCCC) as mechanism to make finance available from developed to developing countries for climate change
Slide 27: Sustainability in Deutsche Bank’s business with corporations
Sustainability in Deutsche Bank’s business with corporations Renewable Energy Finance and Green Bonds Corporate & Investment Bank Deal volume, in EUR m 2015 (1-3Q) 2014 2013 Project Finance 4,815 (1,673 MW) 4,253 (1,793 MW) 2,161 (628 MW) Green Bonds 3,059 4,494 - The volume of renewable energy and
Slide 28: Retail Clients: Responsible Banking Committee and Chief Client Officer
Retail Clients: Responsible Banking Committee and Chief Client Officer at top management level The Responsible Banking Committee of senior executives supervises compliance with Product Code and Product Principles Responsible The entire product offering will be continuously under review by a dedicate
Slide 29: Retail Clients: Fair Share™ Principles are key for performance measurement
Retail Clients: Fair Share™ Principles are key for performance measurement and steering Quality of financial advice is the most relevant factor for positive client retention Value Proposition — Fair-Share Matrix as basis for individual performance management of branches and regions… Customer — ... d
Slide 30: Agenda
Agenda 1 Strategy 2020 2 Governance & controls 3 Sustainability: Risks and opportunities 4 Staff 5 Further information (Appendix) Deutsche Bank Viktoriya Borysova / Dr. Antje Stobbe 29 16-18 November 2015
Slide 31: Deutsche Bank as an employer
Deutsche Bank as an employer Increased ratio of women in Number of employees Regional deployment of staff management positions Full-time equivalents at year end In % at year end In % at year end Europe (excl. Germany, Female Managing Directors Middle East, Africa) and Directors Germany Americas Fema
Slide 32: German Gender Quota Law: Implementation at Deutsche Bank
German Gender Quota Law: Implementation at Deutsche Bank — Listed and co-determined companies have a fixed gender quota target of 30% on their supervisory boards as of 2016 Legal — For management boards and the two levels below, gender quota targets below status quo not permitted requirements — Firs
Slide 33: Training: Promoting professional and personal development
Training: Promoting professional and personal development Training Training attendance Training expenses in EUR m In %, 2014, 724,000 participations — Total investment in Leadership & training decreased, in line 140 Management with targeted OpEx- 122 2.4% Business & Finance savings 120 11.4% — More
Slide 34: Agenda
Agenda 1 Strategy 2020 2 Governance and controls 3 Sustainability: Risks and opportunities 4 Staff 5 Further information (Appendix) Deutsche Bank Viktoriya Borysova / Dr. Antje Stobbe 33 16-18 November 2015
Slide 35: Litigation: Status update on selected cases
Litigation: Status update on selected cases (as of 30 July, 2015) Kirch ― All legal disputes between DB and Kirch Group settled in February 2014 with a payment of EUR 0.8 bn ― Settlement on EC IBOR in December 2013 (EUR 0.7 bn); settlement of investigations with US and UK IBOR regulators over interb
Slide 36: The Risk Culture programme drives change across the Bank
The Risk Culture programme drives change across the Bank By embedding a strong risk culture across Deutsche Bank, Risk supports the Bank`s aim of sustainably aligning risks and rewards in a way that is sensitive to the societies in which we operate. Overview Five Risk Culture behaviours ― Risk Cultu
Slide 37: Board compensation: Annual & Long-term Performance Award
Board compensation: Annual & Long-term Performance Award Components and assessment approach Relevant KPIs Weight 3 Financial KPIs Common Equity Tier 1 ratio and Leverage ratio (Capital), CIR (Costs), 3 x 15% Value-added (Competencies) Annual Performance 1 Culture KPI Award (APA) 1 x 15% Employee Com
Slide 38: Green Bond Principles
Green Bond Principles The Green Bond Principles (GBP) … ― create a common, voluntary framework and standard disclosures, ― support transparency and integrity for investors in this rapidly growing market, and ― will help this market to develop ― currently focus on four types of bonds: (I) Green Use o
Slide 39: Retail Clients: Product Code and Product Principles
Retail Clients: Product Code and Product Principles As part of FairShare™, we implemented a Product Code and Product Principles. These commit us to creating long-term value for clients and shareholders through products that are transparent, part of the real economy and beneficial to individuals yet
Slide 40: Sustainability Ratings
Sustainability Ratings Deutsche Bank is assessed by Rating of 100+ banks worldwide Deutsche Bank Industry average DB among top 10% 78 69 72 67 58 46 39 36 Merger in October 2015 Economic Environmental Social dimension Total dimension dimension 2014 2013 Ranking: Rating: C 32 out of 128 Position: Pri
Slide 41: Achieving carbon neutrality
Achieving carbon neutrality ― We achieved our target to make our operations carbon neutral by the end of 2012 ― We maintained carbon neutrality for our operations in 2014 ― The Board confirmed the goal of maintaining carbon neutrality in the future ― Invested in energy efficiency projects to reduce
Slide 42: 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