Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Cheuvreux 10th German Corporate Conference 2011
27 slides from Deutsche Bank's conference presentation, Jan 17, 2011
Slide 1: Building a retail powerhouse in Europe's biggest economy
Deutsche Bank Building a retail powerhouse in Europe’s biggest economy Rainer Neske Member of the Management Board Head of Private & Business Clients Cheuvreux 10th German Corporate Conference Deutsche Bank Rainer Neske Frankfurt, 17 January 2011 financial transparency. 1 Investor Relations 17 Janua
Slide 2: Agenda
Agenda g 1 Deutsche Bank Group performance 2 Retail powerhouse in Europe’s biggest economy 3 Postbank: The perfect fit 4 An attractive business case Deutsche Bank Rainer Neske financial transparency. 2 Investor Relations 17 January 2011
Slide 3: 3Q2010 at a glance
3Q2010 at a glance g 3Q2010 ex 3Q2010 Postbank effect(3) 3Q2009 Income before income taxes (in EUR bn) (1.0) (1 0) 13 1.3 13 1.3 Profita- Net income (in EUR bn) (1.2) 1.1 1.4 bility Pre-tax RoE ((target g definition))(1) 13% 13% 14% Diluted EPS (in EUR) (1.75) 1.70 1.92 30 Sep 2010 ex 30 S Sep 2010
Slide 4: Capital ratios and risk-weighted assets
Capital p ratios and risk-weighted g assets 12.6 11 7 11.7 11 11.5 5 11.5 11.0 11.2 11.3 10.2 Target: ≥10% 87 8.7 7.8 8.1 7.6 7.5 7.5 7.6 7.1 316 295 288 292 303 273 277 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2009 2010 Tier 1 ratio, in % Core Tier 1 ratio, in % RWA, in EUR bn Note: Tier 1 ratio = Tier 1 capital / RWA
Slide 5: Positive IBIT contribution from all operating segments
Positive IBIT contribution from all operating p g segments g Income before income taxes, in EUR m 3Q2010 3Q2009 3Q2010 acquisition impact / Postbank effect 1,101 CB&S 981 214 13(1) GTB 201 78 52(2) AWM 134 245 PBC 149 (2,337) 2,338(3) CI 117 ((349)) C&A (267) (1) ABN AMRO Netherlands impact ((2)) PW
Slide 6: Performance vs. targets
Performance vs. targets g Income before income taxes, in EUR bn Phase 4 9M2010 potential reported 2011 Acquisition impact Corporate Banking & 4.5 6.3 Securities Global Transaction 9M2010 excluding ABN AMRO Netherlands 0.8 1.3 acquisition: EUR 0.6 bn Banking 9M2010 excluding Sal. Oppenheim / BHF Asse
Slide 7: PBC gaining momentum
PBC g gaining g momentum In EUR m Revenues Income before income taxes Severances(1) 5,576 5,749 Other (19)% 18% 24 Deposits & Payment 9% Services 177 Advisory/ Brokerage 6% 667 Discretionary 24% Portfolio Mgmt. 411 Credit Products (1)% 2009 9M2010 9M2009 9M2010 annualized (1) Includes direct severan
Slide 8: Agenda
Agenda g 1 Deutsche Bank Group performance 2 Retail powerhouse in Europe’s biggest economy 3 Postbank: The perfect fit 4 An attractive business case Deutsche Bank Rainer Neske financial transparency. 8 Investor Relations 17 January 2011
Slide 9: PBC / Postbank to become a clear leader in Germany and close gap vs. large European players
PBC / Postbank to become a clear leader in Germany y and to close the gap vs. large European players German retail market European retail peers Domestic clients, Dec 2009, in million Domestic net revenues in retail business, FY2009, in EUR bn ~50 50 Intesa SanPaolo 10.4 ~30 Santander 8.8 Unicredit 7
Slide 10: A retail powerhouse
A retail powerhouse Facts and figures German branch networks 30 September 2010 / 9M2010 Deutsche Bank: 774 / Berliner Bank: 61 Postbank: 1,119 / norisbank: 94 Pre- PBC Postbank integration global PBC + PB (1) Clients, in m 14.5 14.0 28.5 Branches 1,760 1,119(1) 2,879 Mobile Sales Force >3,000 3,000
Slide 11: Germany: Healthy market environment
Germany: y Healthyy 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 2,198 1,197 , 1,194 , 2 089 2,089 981 1,466 616 GER FR UK IT ES GER UK FR IT ES ...and favoura
Slide 12: ...and a retail banking environment better than perceived
…and a retail banking g environment better than p perceived Retail banking markets overview Positioning of combined PBC / Postbank Retail banking revenues after risk costs 2009(1), in EUR bn Significant combined PBC / Postbank share in 61 Europe’s largest retail banking market 39 35 30 25 Price
Slide 13: Agenda
Agenda g 1 Deutsche Bank Group performance 2 Retail powerhouse in Europe’s biggest economy 3 Postbank: The perfect fit 4 An attractive business case Deutsche Bank Rainer Neske financial transparency. 13 Investor Relations 17 January 2011
Slide 14: Rationale for Postbank acquisition
Rationale for Postbank acquisition q — 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 Good for — Achieve critica
Slide 15: Complementary business propositions
Complementary p y business p propositions p ... Advisory Banking Consumer Banking mium Prem — Advisory Banking — Easy accessibility proposition (branch / online) — Relationship — Leadership for price- Advisorry management with conscious private and excellent service business clients levels — Lean po
Slide 16: Reflected in different business mix
… reflected in different business mix Market share(1) Revenues(2) In % In % of total Current ~8-10% ~65-75% A Account t/ Saving ~5-6% ~50% Loan / ~3-4% ~20-30% Mortgages / Home Savings ~3 4% ~3-4% ~25% ~4-5% 4 5% ~2-10% Investments / Insurance ~10-14% ~25% (1) FMDS Data (and eFinancLab) 2009 analysi
Slide 17: Postbank balance sheet: Non-customer vs. customer bank
Postbank balance sheet: Non-customer vs. customer bank In EUR bn, 30 Jun 2010 242 242 Investment securities 39 Deposits from other banks Includes Structured Credit Portfolio 63 ((“SCP”)) of EUR 5.6bn Non- N 37 Trading T di li biliti iincl. liabilities l hedge h d Customer derivatives Bank Equity & s
Slide 18: Potential for mid-term capital relief from run-off of non-customer assets
Potential for mid-term capital p relief from run-off of non-customer assets 30 June 2010, in EUR bn illustrative Operational risk 242 Non- Customer 71 B k Bank 7.7 Non- Aspire to free-up customer capital and redeploy at Customer assets higher RoE(1) Bank Customer assets Assets RWA Total incremental
Slide 19: Postbank's retail business is profitable and stable
Postbank’s retail business is profitable and stable In EUR m Postbank’s retail division with PBC’s stable revenue stream will be consistent profits through the crisis strenghtened further PB pre-tax profit by segment (reported figures) Pro-forma combined PBC / Postbank revenues Transaction Banking C
Slide 20: PBC and PB Retail key ratios: RoE and CIR
PBC and PB Retail keyy ratios: RoE and CIR High RoEs through the crisis ... ... but efficiency to be improved Pre-tax RoE, in % Cost-Income-Ratio, in % PBC (1) PBC (1) Postbank Retail reported Postbank Retail reported xx Combined xx Combined 33 35 24 31 68 68 71 70 42 71 73 72 70 36 64 67 65 64 34 3
Slide 21: Agenda
Agenda g 1 Deutsche Bank Group performance 2 Retail powerhouse in Europe’s biggest economy 3 Postbank: The perfect fit 4 An attractive business case Deutsche Bank Rainer Neske financial transparency. 21 Investor Relations 17 January 2011
Slide 22: Integrated target operating model will enable us to benefit from broad market coverage
Integrated g target g operating p g model will enable us to benefit from broad market coverage Strategy & Steering One integrated management Consumer Two brands Advisory Advisory Banking Two value propositions Germany Europe/Asia Germany Platform (products, processes, technology) One single platform
Slide 23: Guiding principles for the design of the target platform
Guiding gpprinciples p for the design g of the target g p platform Functional Design-to-cost/ Single platform integration Retailization Consistent Maximum degree of Unit cost reduction / h harmonization i i off i integration i d di i along standardization l processes and common service levels
Slide 24: Synergy targets and cost-to-achieve estimate
Synergy y gy targets g and cost-to-achieve estimate In EUR m Outside-in view Split by type Split by category Cost to achieve Cost-to-achieve ~1 bn p.a. ~1 bn p.a. ~1.4 bn Revenue synergies 100 Sales 100 Revenue ~250 Cross-divisional synergies 100 PBC Premium Processes 260 synergies DB / PB cooperati
Slide 25: The roadmap to PBC's ambition level
The roadmap p to PBC’s ambition level Income before income taxes, in EUR bn >3 3 ~1(2) 0.1 Assumptions: 1.5 Full run-rate, i.e. full synergies realized No further cost-to-achieve PPA effects fully amortized No material impact from non-non customer bank (1) Published Postbank customer P4F Envisaged s
Slide 26: Ambition level for the combined retail franchise
Ambition level for the combined retail franchise Revenues of EUR >10 bn Income before income taxes of EUR >3 bn Cost / income ratio of <60% P t RoE Pre-tax R E off >20% Top 5 retail deposit taker in Europe Assumptions: Full run run-rate, rate ii.e. e full synergies realized PPA effects fully amortiz
Slide 27: Cautionary statements
Cautionary y 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 p
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