Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Investor Day (September 2012)
20 slides from Deutsche Bank's investor day presentation, Sep 12, 2012
Slide 1: Asset & Wealth Management
Deutsche Bank Asset & Wealth Management Michele Faissola, Head of AWM Investor Day, Frankfurt, 12 September 2012
Slide 2: Asset & Wealth Management (AWM): integration, efficiency and growth
Asset & Wealth Management (AWM): integration, efficiency and growth — Challenging market environment and consequences of strategic review Where we — Combining three business units to create global AWM scale player are today — Businesses previously under strategic review (DWS Americas, DB Advisors, D
Slide 3: The combined AWM business is a >EUR 4 bn revenue franchise
The combined AWM business is a >EUR 4 bn revenue franchise … xxx AWM total Pro-Forma FY2011 Financials (excluding non-core assets) Business Core businesses of AWM AuM/IA Revenue IBIT FTEs In EUR tn In EUR bn In EUR bn — Germany — Americas 0.9 7,060 Private Wealth 4.3 — Sal. Oppenheim — Private Clien
Slide 4: ... with global scale and leading market positions ...
... with global scale and leading market positions ... Global top 10 bank-owned AWM players by AuM/IA(1) Examples of DB market positions(3) 2011, in EUR tn Retail asset management #1 Germany, #3 Europe Institutional fixed income asset management #6 global UBS 1.7 Insurance asset management #1 global
Slide 5: ... and a well balanced footprint
… and a well balanced footprint % of total AuM/IA as of year end 2011 Business mix Client mix Product mix Geographic mix 100% Equity 17% PWM 29% Wealth / Germany 42% AM retail 53% FI/Cash 52% EMEA 18% AM 59% Passive 9% Institutional 47% Americas 33% CB&S Alternatives 10% Passive and 3rd Party 12% Ot
Slide 6: The combination will strongly benefit clients and DB Group
The combination will strongly benefit clients and DB Group Advantages of AWM integration — Create a strong buy-side division with its own identity Better service — Deliver strong investment performance in a broader range of products to clients — Customized advice and services, including strong risk
Slide 7: EUR ~1.7 bn IBIT aspiration by 2015
EUR ~1.7 bn IBIT aspiration by 2015 AWM: IBIT improvement AWM: improvement program CtA In EUR bn 2015 aspirational run rate IBIT impact in EUR bn (in EUR bn) Description Front office Targeted optimization of businesses with 2011 ~0.2 lower efficiency optimization ~0.8 pro-forma IBIT Management and b
Slide 8: Clear aspiration and priorities
Clear aspiration and priorities Leading AWM player with superior efficiency and best-in-class client services 1 Integration Deliver efficiencies and a coordinated proposition to clients 2 Clients Strengthen buy-side identity and bolster client confidence 3 Products Deliver first-class performance in
Slide 9: Clear areas of overlap in front office
1 Integration Clear areas of overlap in front office ■ Primary Coverage Investment Platform Regions □ Secondary Core brands/ Wealth / Active Active Fixed business lines AM retail Institutional Equity Income Passive Alternatives Other Germany EMEA Americas APAC Germany ■ ■ ■ □ □ ■ Sal. Opp ■ □ ■ ■ □
Slide 10: Substantial middle and back office efficiency potential
1 Integration Substantial middle and back office efficiency potential Efficiency impact: Low Medium High 3rd party Key Opportunities Hardware Software Real estate services 3rd party spend — Reduce and optimize vendors and reduction market data providers — Simplify shared services — Shift resources o
Slide 11: Our integrated and simplified AWM model
1 Integration Coverage Our integrated and simplified AWM model Products Support / infrastructure Current operating model – siloed and fragmented Future operating model – integrated and simplified Germany Sal. Opp. EMEA Americas PCS APAC (U)HNW and Retail Institutional Clients Clients PWM Services, P
Slide 12: Better engagement with other DB divisions and 3rd parties
1 Integration Better engagement with other DB divisions and 3rd parties — Deliver trading, structuring and execution expertise CB&S — Access to unique investment opportunities in capital markets AWM — Cross-referral of clients — Access for GTB platform to AWM liquidity GTB solutions — Cross-referral
Slide 13: Focus on priority client segments
2 Clients Focus on priority client segments Client segment Key priorities — Expand UHNW market penetration Expand UHNW market penetration UHNW market Focus areas — Integrate regional and global coverage teams Total AuM/IA of UHNWI, in EUR tn — Increase UHNW relationships by ~50% by 2015 (U)HNW/ — St
Slide 14: First-class performance in products and services
3 Products First-class performance in products and services Overview by product Key priorities — Enhance access to markets, Passive Services/ investment opportunities and custom ETF market AuM/IA Key actions Advisory solutions with appropriate interface In EUR bn — Grow ETF AuM/IA by 2,225 to CB&S 4
Slide 15: Optimize and grow regional footprint
4 Regions Optimize and grow regional footprint Region Key priorities Germany Top player at home(1) Key actions — Capitalize on leading positions in Germany — Increase market penetration home market — Promote Sal. Oppenheim as distinct #1 Wealth manager brand and client proposition with in Germany in
Slide 16: Targeted improvements on revenue and cost side
Targeted improvements on revenue and cost side Δ 2015 (plan) vs. 2012 (pro forma): Higher Lower ~ Limited change Revenues Costs CIR RoE Product /region (EUR m) (EUR m) (%) (%) Europe (incl. Germany) Private Wealth Management U.S. ~ Emerging markets Passive ~ ~ Asset Management Active Retail ~ Active
Slide 17: Transformation is already under way
Transformation is already under way Key actions to date — Realization of cost improvements has started — Closed duplicative U.S. institutional manufacturing platform (Louisville) Costs — Platform rationalization kicked off — Cost reduction under way — Implementation of growth priorities has started
Slide 18: To recap: ambitious but achievable 2015 aspirations ...
To recap: ambitious but achievable 2015 aspirations ... IBIT RWA equivalent(1) Conservative revenue assumptions In EUR bn In EUR bn Net new money/ +2% p.a. +20% p.a. ~1.7 +2% p.a. invested assets 18 ~19 0.8 Increase in number of funds +15-20% with Morningstar by 2015 rating 4 or 5 2011 2015 aspirati
Slide 19: Key take-aways
Key take-aways Leading integrated AWM player with close to EUR 1.0 tn AuM/IA Client-centric business model delivering first-class products and services IBIT aspiration of EUR ~1.7 bn supported by EUR ~0.7 bn savings Integrated, efficient platform for future growth Transformation is already under way
Slide 20: 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