Deutsche Bank AG · XETR:DBK
Deutsche Bank — Debt Investor Presentation (May 2014)
33 slides from Deutsche Bank's debt investor presentation, May 2014
Slide 1: Deutsche Bank Additional Tier 1 Roadshow
Deutsche Bank Deutsche Bank Additional Tier 1 Roadshow These materials and the information contained herein are 5 – 9 Mayy 2014 nott being b i issued i d and d may nott be b distributed di t ib t d in i the th United U it d States, Canada, Japan or Australia
Slide 2: Disclaimers
Disclaimers These written materials do not constitute an offer to sell securities securities, or a solicitation of an offer to buy securities securities, in the United States of America America. Securities may not be offered or sold in the United States of America absent registration or an exemption
Slide 3: Agenda
Agenda 1 AT1 offering 2 FY2013 and 1Q2014 results Appendix Deutsche Bank AT1 Roadshow, 5 – 9 May 2014 financial transparency. 3 Treasury / Investor Relations These materials and the information contained herein are not being issued and may not be distributed in the United States, Canada, Japan or Au
Slide 4: Key features
Key features DB's inaugural issuance of CRD4/CRR compliant Additional Tier 1 (“AT1”) capital Strengthens capital base and supports expected future leverage ratio requirements CET1 of 13.2% / EUR 50 bn as of 31 March 2014 CET1 capital headroom as of 31 March 2014 of 8.1% / EUR 30 bn vs. trigger of 5.
Slide 5: Additional Tier 1 – offering summary
Additional Tier 1 – offering summary (see prospectus for detailed description) Issuer — Deutsche Bank Aktiengesellschaft, Frankfurt am Main Notes — Multi currency issue — CRD4/CRR compliant Additional Tier 1 Notes — Temporary write-down, in whole or part, at 5.125% CET1 ratio (phase-in/group) — Perp
Slide 6: Additional Tier 1 – structural features
Additional Tier 1 – structural features (see prospectus for detailed description) Feature Mechanism Cancellation C ll ti off IInterest t t payments t will ill nott be b made, d if the th BBank k elects l t tto cancell th the payment, t iin whole h l or iin part, t att itits sole l interest payments
Slide 7: CT1/CET1 ratio development and AT1 headroom above trigger
CT1/CET1 ratio development and AT1 headroom above trigger CT1/CET1 ratio (2008 – 1Q2014)(1) AT1: Headroom above trigger Reported CT1/CET1 ratio, period end CET1 ratio Trigger level for write- Basel 2 Basel 2.5 Basel 3 down mechanism 13.2% 13.2% Phase-in CET1 ratio 12.8% 11.4% > 10% ((target) g ) Est
Slide 8: AT1: Headroom above distribution restrictions
AT1: Headroom above distribution restrictions CET1 ratio as of 31 March 2014 Phase in of total CET1 requirements 13.2% Phase-in CET1 ratio 9.5% Fully-loaded CET1 ratio 4 5% 4.5% Illustrative combined 3.4% 2.3% 4.0% buffer requirements(1) 1.1% CET1 minimum requirements 4.5% 4.5% 4.5% 4.5% 31 March 1Q
Slide 9: Payment capacity for distributions on AT1
Payment capacity for distributions on AT1 T1/AT1 interest expense are added to ADI Payment capacity for AT1 instruments — Total ppayment y capacity p y for AT1 instruments I EUR m In is “Available Distributable Items” plus 3,000 “Aggregated Interest” on Tier 1 instruments from previous year (as alre
Slide 10: AT1 offering: Mitigating the key risks
AT1 offering Mitigating the key risks Trigger gg level: 5.125% CET1 ((no super-equivalence) p q ) Capital buffer: Significant buffer of 8.1% 8 1% / EUR 30 bn vs. vs trigger of 5.125% 5 125% (March 2014) Di t ib ti Distributions: ADI iincreased dbby iinterest t t expenses ffor Ti Tier 1 ffrom previou
Slide 11: Agenda
Agenda 1 AT1 offering 2 FY2013 and 1Q2014 results Appendix Deutsche Bank AT1 Roadshow, 5 – 9 May 2014 financial transparency. 11 Treasury / Investor Relations These materials and the information contained herein are not being issued and may not be distributed in the United States, Canada, Japan or A
Slide 12: FY2013 and 1Q2014: Results at a glance
FY2013 and 1Q2014: Results at a glance In EUR bn, bn unless otherwise stated FY2012 FY2013 1Q2013 1Q2014 Income before income taxes 0.8 1.5 2.4 1.7 Net income 0.3 0.7 1.7 1.1 Diluted EPS (in EUR) 0.27 0.65 1.71 1.03 Profitability Post-tax return on average active equity 0.5% 1.2% 12.3% 7.9% Cost / i
Slide 13: 2013 was our second year of addressing issues and investing in the future
As expected, 2013 was our second year of addressing issues and investing in the future FY2013, in EUR bn 8.5 0.5 14 1.4 4.9 1.8 34 3.4 1.5 FY2013 NCOU(1) Core Bank Litigation/ Investing In esting in CVA / DVA / FY2013 Group reported IBIT impair- our platform(3) FVA(4) Core Bank reported IBIT ments(2
Slide 14: These challenges should not obscure core operating performance
These challenges should not obscure core operating performance which was close to our best year ever ... performance, Adjusted IBIT(1), Core Bank(2), in EUR bn Strategy Growth & Expansion Crisis Recalibration 2015+ 8.4 8.3 8.3 8.5 7.8 7.6 6.5 4.8 5.2 (5.6) 2004 2005 2006 2007 2008 2009 2010 2011 201
Slide 15: … achieved with a leaner platform
… achieved with a leaner platform Total assets (adjusted) Adjusted cost base(2) RWA In EUR bn In EUR bn Pro-forma Pro forma Basel 2 2, indexed Dec 2010 = 100, in % (30)% (8)% (24)% 1,521 25.1 100 23.1 76 1,066 Peak Current Peak Current Peak Current (Dec 2006)(1) (Dec 2013) (1H2012)(3) (FY2013) (Dec
Slide 16: Today we are a safer bank …
Today we are a safer bank … Trading portfolio stress scenario loss(1) Loss absorption capacity Funding composition In EUR bn CET1 capital(2) as a multiple of stress loss Split of funding liabilities Total funding, 5.0 28x in EUR bn 1,206 982 Other(3) 70% 34% 19 1.9 Most 6x 66% stable funding 30% sou
Slide 17: … and a better balanced bank
… and a better balanced bank Core Bank adjusted IBIT((1)), in EUR bn Total growth, FY04 to FY13 85 8.5 7.8 12% 2.1x 14% 14% 4.3x 13% 4.8 2.1x DeAWM 23% 11% 16% GTB 6% PBC 20% 57% 51% 1.5x CB&S 63% FY2004 FY2007 FY2013 Note: N t N b Numbers may nott adddd up d due tto rounding; di C Core BBankk adjus
Slide 18: Capital: Key achievements to date
Capital: Key achievements to date CRD4 Common Equity Tier 1 ratio ratio, in% Fully-loaded Key achievements to date — Capital position significantly strengthened 9.7% since June 2012 following announcement of 9.5% Strategy 2015+ priorities — Fully-loaded ratio increased by more than <6 0% <6.0% 50% —
Slide 19: Capital: We are committed to our 10% CET1 ratio target
Capital: We are committed to our 10% CET1 ratio target CET1 ratio and target Outlook CRD4 Common Equity Tier 1ratio, y fully-loaded Risks Measures >10% ― EBA Regulatory Technical ― Retained earnings Standards, e.g. 9.5% ― NCOU de-risking ― Prudent Valuation: Potential EUR 1 1.5 5 – 2.0 2 0 bn ― Othe
Slide 20: Leverage: Progress on leverage toolbox
Leverage: Progress on leverage toolbox Leverage Composition of reductions CRD4 exposure, in EUR bn In EUR bn Achieved Achieved in Achieved Jun 2013 - Leverage ratio, adjusted fully loaded 2H2013(6) in 1Q2014 Mar 2014 3.0% 3.2% NCOU de-risking(2) ~16 ~14 ~30 (~160) Jun 2013 to Dec Derivatives and Sec
Slide 21: Leverage: Simulation for 2015
Leverage: Simulation for 2015 CRD4 in EUR bn, CRD4, bn period end Leverage exposure Tier 1 capital CRD4 leverage ratio Eligible AT1(1) Targeted AT1 1,583 issuance 3.0% 3.2% 3.1% >3% (44) 1,423 Adjusted fully loaded Fully loaded ((116)) ~1,290 47.8 ~(130) 45.4 81 8.1 11.3 40.3 10.0 5.0 36.5 35.3 35.3
Slide 22: We confirm our aspirations to take advantage of future opportunities
We confirm our aspirations to take advantage of future opportunities Strategy 2015+ aspirations Future possibilities? Cost savings of EUR 4.5 bn Changed A leading European Accelerated de-risking of NCOU competitive consolidator landscape FY2011 Aspiration 2015 Fully loaded Core Tier 1 <6%(1) >10% ra
Slide 23: Agenda
Agenda 1 AT1 offering 2 FY2013 and 1Q2014 results Appendix Deutsche Bank AT1 Roadshow, 5 – 9 May 2014 financial transparency. 23 Treasury / Investor Relations These materials and the information contained herein are not being issued and may not be distributed in the United States, Canada, Japan or A
Slide 24: Deutsche Bank at a glance
Deutsche Bank at a glance FY2013 Key facts Revenues per region(1) Revenues by business(2) Revenues 31.9 in EUR bn Employees ~98 98,000 000 Asia/Pacific GTB 12% 13% DeAWM Retail customers 15% ~28.0 Germany in m Americas CB&S 36% 24% 43% Number of ~2,900 PBC branches EMEA(3) 30% 31% I Invested t d ass
Slide 25: Funding profile
Funding profile 31 December 2007 31 March 2014 Financing Financing Vehicles Vehicles 5% 2% 30% from most stable 65% from most stable funding sources(1) funding sources Capital Markets and Equity Secured Funding Capital Markets 12% and Shorts and Equity 19% Retail 17% 11% Secured Discretionary Fundin
Slide 26: Credit ratings overview
Credit ratings overview Notches downgraded since July 2007 Moody´s rating scale Aa3 A1 A2 A3 Baa1 Baa2 (long-term rating only) Fitch and S&P rating scale AA- A+ A A- BBB+ BBB Moody´s Fitch S&P (2) (2) HSBC(1) 2 1 1 BNP Paribas (2) 3 2 3 Credit Suisse(1) (2) 3 2 2 Deutsche Bank (2) (3) (2) 4 1 2 JPMo
Slide 27: Deutsche Bank's long-term credit ratings profile
Deutsche Bank’s long-term credit ratings profile As of 6 May 2014 Pfandbrief Aaa - - Senior unsecured debt A2 A A+ Tier 2 Baa3 BBB A- Legacy Tier 1 (B2.5) Ba2 BBB- BBB- on review for Outlook downgrade negative negative Short term debt P-1 A-1 F1+ Deutsche Bank AT1 Roadshow, 5 – 9 May 2014 financial
Slide 28: Litigation update
Litigation update In EUR bn Mortgage repurchase Litigation reserves Contingent liabilities demands/reserves In USD Demands Reserves 2.0 1.8 1.8 5.0 5.0 1.5 0.5 0.6 31 Dec 2013 31 Mar 2014 31 D Dec 2013 31 M Mar 2014 31 Dec 2013 31 Mar 2014 — While litigation expenses were — This includes obligations
Slide 29: Reported and adjusted costs
Reported and adjusted costs In EUR bn Non-Compensation Compensation and 6.9 7.2 7.6 6.6 6.5 benefits 31 3.1 37 3.7 43 4.3 49 4.9 31 3.1 3.5 3.2 2.9 2.7 3.3 1Q 2Q 3Q 4Q 1Q 2013 2014 Adj. cost base 6,034 5,910 5,600 5,604 5,992 (in EUR m) excludes: Cost-to-Achieve 224 357 242 509 310 Litigation 132 63
Slide 30: Operating cost and OpEx development
Operating cost and OpEx development 1Q2014 vs. 1Q2013 OpEx program to date In EUR bn Key drivers: In EUR bn — Establishing g new control function capabilities p 1Q2014 — Integrating platforms and enhancing end-to-end Invested/ (E2E) processes FY2013 achieved — Strengthening our regulatory framework
Slide 31: Reconciliation of reported IFRS to adjusted non-GAAP – FY13
Reconciliation of reported IFRS to adjusted non-GAAP – FY 2013 CB&S GTB DeAWM PBC C&A Core NCOU Group In EUR m (if not stated otherwise) Bank Revenues (reported) 13,526 4,069 4,735 9,550 (929) 30,951 964 31,915 CVA / DVA / FVA1 203 0 0 0 276 479 171 650 Revenues (adjusted) 13,729 4,069 4,735 9,550 (
Slide 32: Reconciliation of reported IFRS to adjusted non-GAAP – FY12
Reconciliation of reported IFRS to adjusted non-GAAP – FY 2012 CB&S GTB DeAWM PBC C&A Core NCOU Group In EUR m (if not stated otherwise) Bank Revenues (reported) 15,073 4,200 4,472 9,540 (975) 32,309 1,427 33,736 CVA / DVA / FVA1 (350) 0 0 0 0 (350) 0 (350) Revenues (adjusted) 14,723 4,200 4,472 9,5
Slide 33: Reconciliation of reported IBIT to adjusted IBIT – FY 2004 through 2011
Reconciliation of reported IBIT to adjusted IBIT – FY 2004 through 2011 Reconciliation of Corebank IBIT1 2011 2010 2009 2008 2007 2006 2005 2004 In EUR m Corebank IBIT reported 7,478 7,524 4,746 -6,935 7,449 7,979 5,063 3,844 2 Cost‐to‐Achieve/Severance/Restructuring 514 527 629 555 212 344 815 678
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