Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Goldman Sachs European Financials Conference 2013
28 slides from Deutsche Bank's conference presentation, Jun 12, 2013
Slide 1: Strategy 2015+: Road to operational excellence
Deutsche Bank Deutsche Bank AG Strategy 2015+: Road to operational excellence Henry Ritchotte, Chief Operating Officer, Member of the Management Board Goldman Sachs European Financials Conference Brussels, 12 June 2013
Slide 2: Agenda
Agenda 1 Where we stand on Strategy 2015+ 2 Update on Operational Excellence Program Deutsche Bank Henry Ritchotte financial transparency. 1 Goldman Sachs European Financials Conference, 12 June 2013
Slide 3: Strategy 2015+: Progress against our published goals
Strategy 2015+: Progress against our published goals We aspire to be the leading client-centric client global universal bank Capital Costs Competencies Clients Culture Deutsche Bank Henry Ritchotte financial transparency. 2 Goldman Sachs European Financials Conference, 12 June 2013
Slide 4: Capital: We outperformed our ambitious organic capital targets
Capital: We outperformed our ambitious organic capital targets thanks to significant asset sales and hedging... Two quarters of outperformance Significant RWA reduction Pro-forma Basel 3 CT 1 ratio (fully loaded), in %, at period end Pro-forma Basel 3 RWA equivalent(1) relief, 1 Jul 2012 to 31 Mar 2
Slide 5: Capital: …and closed the capital gap to our peers
Capital: …and closed the capital gap to our peers Set of announced capital measures DB has closed the capital gap to its peers(1) Pro-forma Basel 3 CT 1 ratio (fully loaded), as of 31 Mar 2013, Issued 90 m new shares in % raising EUR 2.96 bn 10.1 Ex-rights Strong investor demand and 10.0 issue rapid
Slide 6: Costs: Operational Excellence program is on track
Costs: Operational Excellence program is on track On track to deliver 2013 target Examples of success In EUR bn ~900 applications eliminated IT platform 4.5 >20 million retail clients migrated to new renewal IT platform (“Magellan“) 4.0 2014 target Progress in recalibrating CB&S and Organizational i
Slide 7: Competencies: Our franchise is performing well...
Competencies: Our franchise is performing well... CB&S: Best performing European bank GTB: Good 1Q2013 performance 1Q2013 S&T revenues(1), 1Q13 vs. 1Q12, in % Revenues IBIT in EUR bn In EUR m In EUR m (4)% (3)% (9)% (3)% (13)% (19)% (2)% (28)% 3% 967 992(2) 4.6 4.1 320 309(3) 3.5 3.4 3.4 3.2 2.6 2.1
Slide 8: Competencies: ...across all our core businesses
Competencies: ...across all our core businesses AWM: Positive NNM and increased assets PBC: Best quarter since consolidation NNM(1), in EUR bn Invested assets, in EUR bn Adjusted IBIT(2), In EUR m 923 973 700 649 650 6 600 550 500 (3) 450 (5) (6) 400 (8) 350 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
Slide 9: Clients: Client-centricity at work
Clients: Client-centricity at work In our home market... ...and globally Example Apple CB&S GTB Infra- structure Integrated commercial banking coverage: ~11,500 small-/ mid-sized corporate clients (Mittelstand) transferred from CB&S and GTB to PBC Deutsche Bank Henry Ritchotte financial transparency
Slide 10: Culture: Working on cultural change
Culture: Working on cultural change Selected examples Variable comp has decreased significantly Independent compen- “Red flag” monitoring Variable compensation in % of revenues(1) sation review panel system 22% (13)ppt 20% 19% 17% 15% Transactions(2) reviewed Compliance and risk by Group Sustainabil
Slide 11: Agenda
Agenda 1 Where we stand on Strategy 2015+ 2 Update on Operational Excellence Program Deutsche Bank Henry Ritchotte financial transparency. 10 Goldman Sachs European Financials Conference, 12 June 2013
Slide 12: OpEx Program prepares DB for the "new normal"
OpEx Program prepares DB for the "new normal" “New normal” – lasting market characteristics Key OpEx objectives Low growth, further potential for shocks Quality Macro- Improving services to clients and business economic Continued dependence on policy stimulus challenges Customization rate <20% Signi
Slide 13: Program savings and CtA on track
Program savings and CtA on track Savings and CtA ramp-up, in EUR bn Achievements FY2012/1Q2013 Savings (cumulative) Actuals Targets Program saving and CtA targets Infrastructure savings (cumulative) 1.6 Business savings (cumulative) 0.4 0.4 0.6 4.5(1) Thereof CtA targets (incremental) 1.8 — Infra 0.
Slide 14: OpEx target to deliver cost savings and sustainable revenue growth
OpEx target to deliver cost savings and sustainable revenue growth Reported cost/income ratio Net revenues, in EUR bn 9.4 +2% 9.2 8.6 8.0 7.9 76% 83% 81% 135% 71% Adjusted cost base(1), in EUR bn 6.4 6.1 6.0 6.1 6.0 -6% 1Q 2Q 3Q 4Q 1Q 2012 2013 Overall cost/income ratio of <65% targeted from 2015 (1
Slide 15: Goals for structural change clearly defined along 5 levers
Goals for structural change clearly defined along 5 levers Committed Expected savings(1) CtA Structural lever Aspiration level OpEx 2015 (EUR bn) (EUR bn) IT platform Customization rate <20% 1 renewal 40% reduction in apps and systems 0.8 1.5 Virtualized and integrated platforms Span of control: 8 2
Slide 16: IT platform renewal
1 IT platform renewal Major IT platforms Achievements to date CB&S GTB AWM PBC Platform program kicked off in 2012 with ~ 2,650 applications in scope for dbCoral standardization 900 applications (16%) eliminated, additional 1,300 flagged for de- commissioning (05/13, ongoing) Reference Data Shift of
Slide 17: Organizational streamlining
2 Organizational streamlining Shared services approach Achievements to date Current CB&S GTB AWM PBC model Vertically embedded Re-alignment of AWM organization for services Germany and repositioning of Sal. Oppenheim started in late 2012 Shared services AWM buy-side activities consolidated and 700+
Slide 18: Sourcing excellence
3 Sourcing excellence Share of non-compensation cost Achievements to date — IT hardware, software Total number of vendors reduced by and services ~5,100 (8%) between 1Q2012 and ~55% — Professional services 1Q2013 Comp — Recruiting and temp labor EUR 60 m savings realized to date via sourcing synergi
Slide 19: Front-to-back productivity
4 Front-to-back productivity Process landscape Achievements to date Current model Many custom processes Still often manual and not Coverage function increasing proximity optimized by transferring 11,000 mid-sized corporate clients in Germany from CB&S Target model to Mittelstandsbank Fewer Middle-of
Slide 20: Footprint rationalization
5 Footprint rationalization Current location footprint Achievements to date Share of infrastructure headcount per location Infrastructure and lower cost hubs Consolidate Move to lower Share of infrastructure staff in prime in hubs cost locations locations reduced from 61% (3Q 2012) to 57% (1Q 2013)
Slide 21: We will turn Operational Excellence from a program to a permanent way of life
We will turn Operational Excellence from a program to a permanent way of life 2012 2015 Operational Excellence institutionalized Long term CIR improvement Cost base reduction Further strategic invest- CIR constantly <65% ments e.g., in globally integrated platforms EUR 4.5 bn structural cost >40% of
Slide 22: Cross-silo integration and culture change key to mitigate operational risks
Cross-silo silo integration and culture change key to mitigate operational risks and secure success of OpEx Program Challenges to ensure impact and business continuity during implementation Addressed through Involve all stakeholders, get full management commitment, provide sufficient resources and S
Slide 23: Extensive communications and dedicated change team support program
Extensive communications and dedicated change team support program and ensure cultural change of DB Management presentations One-on-one meetings Regular debriefing of board meetings Change Calls with senior management management infrastructure Events Global/divisional townhalls Dedicated central Man
Slide 24: Key takeaways of presentation
Key takeaways of presentation Through strong organic capital formation and our equity raise, we closed the capital gap to our peers We have delivered strong first quarter results with good operating performance in the core businesses and progress on cost reduction OpEx has been built as an integrate
Slide 25: Appendix
Deutsche Bank Appendix 24
Slide 26: Reconciliation of reported expenses and adjusted cost base
Compensation and benefits General and administrative Reconciliation of reported expenses and expenses Other noninterest expenses(1) adjusted cost base 10.6 In EUR bn 3.2 7.0 6.6 7.0 6.6 3.6 3.4 3.3 3.6 3.3 5.3 3.5 3.4 5.3 3.6 3.2 3.3 3.2 2.8 3.2 2.1 1H2012 3.2 0.2 3.3(0.0) 0.4 0.3 2.9 0.4 2.1 0.2 an
Slide 27: Reconciliation of IBIT Private & Business Clients (PBC)
Reconciliation of IBIT Private & Business Clients (PBC) ( In EUR m, post-minorities FY2011 1Q2012 2Q2012 3Q2012 4Q2012 FY2012 1Q2013 Reported IBIT 574 233 137 93 5 468 117 Cost-to-achieve (180) (28) (42) (49) (149) (268) (51) thereof cost-to-achieve related to OpEx (47) Advisory thereof costs relate
Slide 28: Cautionary statements
Cautionary statements This presentation contains forward-looking statements. Forward-looking Forward 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
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