Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Non-Deal Roadshow (October 2014)
36 slides from Deutsche Bank's roadshow presentation, Oct 23, 2014
Slide 1: Sustainability at Deutsche Bank
Deutsche Bank Sustainability at Deutsche Bank Dr. Sabine Miltner (Group Sustainability) Dr. Antje Stobbe (Investor Relations) Deutsche Bank, Paris / London, 22 / 23 October, 2014 Investor Relations, Communications, CSR & Public Affairs/Group Sustainability
Slide 2: Contents
Contents 1 Sustainability Approach 2 Governance & Effective Controls 3 Risk Management & Sustainability in the Core Business 4 Further Information (Appendix) Deutsche Bank, Paris / London, 22 / 23 October, 2014 1 Investor Relations, Communications, CSR & Public Affairs/Group Sustainability
Slide 3: Starting point
Starting point Sustainability reconnects the bank with its stakeholders Economic elements — Business continuity/ Risk — Sustainability limits financial data security Management and reputational risks — Shareholder value — Stakeholder value Opportunity — Sustainability creates opportunities — Transpa
Slide 4: Sustainability milestones 2013 – 2014
Sustainability milestones 2013 – 2014 Conducted 180 anti-fraud, anti-bribery and anti-corruption corruption risk assessment workshops across all major hubs, which will enhance our fraud, bribery and corruption risk management framework The Supervisory Board intensified its oversight of ethics throug
Slide 5: Contents
Contents 1 Sustainability Approach 2 Governance & Effective Controls 3 Risk Management & Sustainability in the Core Business 4 Further Information (Appendix) Deutsche Bank, Paris / London, 22 / 23 October, 2014 4 Investor Relations, Communications, CSR & Public Affairs/Group Sustainability
Slide 6: Holistic risk management and governance approach
Holistic risk management and governance approach External commitments Internal guidelines UN Guiding Principles on Business and Human Corporate Governance/Human Resources Rights — Code of Business Conduct and Ethics UNEP-FI Declaration of Sustainable Development — Policies and standards Principles f
Slide 7: Broad culture change program irreversibly initiated
Broad culture change program irreversibly initiated Then Now Education/ Broad training program, Non-completion impacts pay and training focus on reminders for non-completion non promotion compliance Deferral: 3 years max; limited Deferral: 5 years max; Compensation clawbacks strengthened clawbacks P
Slide 8: 2013: Values and beliefs launched after extensive discussion and reflection
2013: Values and beliefs launched after extensive discussion and reflection Our Integrity Sustainable Client Centricity Innovation Discipline Partnership values Performance Our We live by the We drive value We earn our We foster We protect the We build diverse beliefs highest standard for shareholde
Slide 9: 3 Lines of Defence: Umbrella program for long-term control enhancements
3 Lines of Defence: Umbrella program to complement ongoing control remediation efforts through long-term long structures Effective control improvements and cultural change (not just a regulatory catch- 3 Lines of Defence up) (3LoD) is DB’s Shared Long-term 1st LoD capabilities as risk owners umbrell
Slide 10: 3LoD: Key objectives
3LoD: Key objectives Objectives to strengthen 3LoD control framework and underlying culture Drive cultural change towards clearer control / risk accountabilities across all 3LoD Focus on structural solutions to supplement existing control efforts: control organization with adequate resourcing, contr
Slide 11: A solid Corporate Governance Framework fosters sustainable change
A solid Corporate Governance Framework fosters sustainable change by institutionalization of accountability Prerequisites of Accountability The institutionalization of accountability leads to: a reduction of complexity within DB’s Governance Structure Empowerment Commitment and is aligned with DB’s
Slide 12: House of Governance builds a best practice, top-down Governance framework
House of Governance builds a best practice, top-down top Governance framework based on a set of clear principles Rationale Supervisory Board House of Governance focuses on Monitoring Reporting Advice managing interfaces across DB’s organizational structure: Management Board Prevent potential overlap
Slide 13: Board compensation: Transparent compensation structure implemented in 2013
Board compensation: Transparent compensation structure implemented in 2013 Old structure New structure as of 1 January 2013 Base Salary Base Salary Monthly cash payment Monthly cash payment Total Bonus Annual Performance Award (APA) Plan vs. Actual RoE Actual RoE Discretionary assessment on the basi
Slide 14: Board compensation: Annual & Long-term Performance Award
Board compensation: Annual & Long-term Long 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 added (Competencies) Annual Performance Award 1 Culture KPI (APA) 1 x 15% E
Slide 15: Contents
Contents 1 Sustainability Approach 2 Governance & Effective Controls 3 Risk Management & Sustainability in the Core Business 4 Further Information (Appendix) Deutsche Bank, Paris / London, 22 / 23 October, 2014 14 Investor Relations, Communications, CSR & Public Affairs/Group Sustainability
Slide 16: Dedicated Risk Culture Program
Dedicated Risk Culture Program Overview Five Risk Culture behaviours … A Bank-wide Risk Culture program was launched in 2010 in order to embed a strong Risk Culture across the organisation. Risk Culture is an important aspect of the Bank’s culture and is a significant focus of the bank’s regulators.
Slide 17: Targeted initiatives help embed a strong risk culture
Targeted initiatives help embed a strong risk culture Comprehensive Training Communications and Engagement Comprehensive mandatory Risk Culture training curriculum Highly visible messages at Group and divisional level introduced in 2010 ensure employee awareness of the Bank’s risk culture standards
Slide 18: Ensuring client & product integrity
Ensuring client & product integrity Consistently enhanced anti-money laundering (AML) function: Strengthened anti-fraud, anti-bribery and anti-corruption program enhanced policies, procedures and controls Approx. 180 risk assessment workshops rolled out across all major hubs Compliance with local an
Slide 19: Managing reputational risks
Managing reputational risks Risk escalation process Operating responsibly means weighing the risks against the value created Group Reputational Risk Committee Regular meetings Discussions concerning escalated reputational risks GRRC Final decision concerning transaction Regional/ Regional/divisional
Slide 20: Environmental and Social Reputational Risk Framework
Environmental and Social Reputational Risk Framework Increased number of transactions reviewed The Environmental and Social Reputational Risk Framework (ES Risk Framework) requires environmental and social due diligence Set of Environmental and Social Impact Assessment Guidelines help business units
Slide 21: Environmental and Social Reputational Risk Framework: key positions
Environmental and Social Reputational Risk Framework Key positions on sensitive topics — Group Policy on Cluster Munitions put into practice in 2012. Cluster munitions — Policy prohibits business with conglomerates that manufacture or distribute cluster munitions, including key components, banned un
Slide 22: Sustainability in DB's business with corporations
Sustainability in DB’s business with corporations Selected renewable energy and clean technology deals and transactions Corporate & Investment Bank, in EUR Deal volume, in EUR m 2011 2012 2013 2014 YTD Public Merger & Acquisition transactions(1) 5,435 2,200 - - Equity and debt issuances 2,290 231 5,
Slide 23: Managing ESG assets for our clients
Managing ESG assets for our clients Global growth Individuals and institutions increasingly view environmental, social and governance risks and opportunities as significant for long term returns. Assets invested according to ESG strategies have continued to grow faster than the overall market. Globa
Slide 24: Business with retail clients (1)
Business with retail clients (1) Advising clients responsibly DB Group PBC Exclusion criteria for active product offering in… Mission + Common Statement Essentials Speculating on the scarcity of food … are the nucleus of the PBC Product Code commodities or short-term ‘We create long-term value in PB
Slide 25: Business with retail clients (2)
Business with retail clients (2) Creating value for clients Creating value for clients as well as shareholders is essential to responsible banking This is at the core of the FairShare™ principle Anchored in private and business client division since 2012 The FairShare™ principle reflects the culmina
Slide 26: Contents
Contents 1 Sustainability Approach 2 Governance and Effective Controls 3 Risk Management & Sustainability in the Core Business 4 Further Information (Appendix) Deutsche Bank, Paris / London, 22 / 23 October, 2014 25 Investor Relations, Communications, CSR & Public Affairs/Group Sustainability
Slide 27: Sustainability in DB's business with corporations: Green Bond Principles
Sustainability in DB’s business with corporations 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 — curre
Slide 28: Achieving carbon neutrality
Achieving carbon neutrality Deutsche Bank achieved its target to make operations carbon neutral by the end of 2012. Deutsche Bank maintained carbon neutrality for its operations in 2013. Invested in energy efficiency projects to reduce energy use and purchased and generated renewable electricity. Bo
Slide 29: Increasing eco-efficiency
Increasing eco-efficiency Intent to gain Leadership in Energy and Environmental Design (LEED) certification for all the Bank’s major buildings. Green 37 buildings within the bank’s portfolio are LEED-certified LEED buildings Green lease program ensures buildings comply with sustainability standards
Slide 30: Deutsche Bank as an employer
Deutsche Bank as an employer Number of employees Regional deployment of staff Employee qualification Full-time equivalents at year's end In % at year's end In % of total number of employees Europe (excl. Germany, University degree Middle East, Africa) High school degree Germany Americas Asia Pacific
Slide 31: Diversity
Diversity Initiatives to foster female leadership (1) — ATLAS (Accomplished Top Leaders Advancement Strategy) initiative was launched in 2009 by the Chairman of the Management Board and Group Executive Committee. Goal: increasing the number of women in senior management positions. Participants are p
Slide 32: Diversity
Diversity Initiatives to foster female leadership (2) — Two female members of Deutsche Bank‘s Group Executive Committee (GEC) appointed in 2014 — Sylvie Matherat : Global Head of Government & Regulatory Affairs since August 1, 2014. Leading an expanded Government & Regulatory Affairs function with r
Slide 33: Integrated Reporting
Integrated Reporting DB‘s participation in key initiatives Since multiple requirements of reporting are increasingly demanding and lead to even higher variety and complexity of reports the call for concise communication which provides more orientation on major performance aspects and drivers is gett
Slide 34: Deutsche Bank is listed in most important ESG/SRI indices
Deutsche Bank is listed in most important ESG/SRI indices Indices Listed since Indices Listed since Sustainalytics ECPI Stoxx ESG Leaders 2001 ECPI 2002 ECPI Ethical Index 2006 SAM FTSE DJSI World 1999 - 2011 FTSE4GOOD 2001 DJSI STOXX 2006 - 2009 Europe Index DJSI Europe 2010 - 2011 (EUR) FTSE4GOOD
Slide 35: Corporate Responsibility – reporting
Corporate Responsibility – reporting Corporate Reporting 2013 CR Report Annual Review Financial Report Website www.db.com/responsibility Deutsche Bank, Paris / London, 22 / 23 October, 2014 34 Investor Relations, Communications, CSR & Public Affairs/Group Sustainability
Slide 36: 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