Deutsche Bank AG · XETR:DBK
Deutsche Bank — Non-Deal Roadshow (September 2008)
39 slides from Deutsche Bank's roadshow presentation, Sep 16, 2008
Slide 1: Deutsche Bank roadshow Switzerland / France / Holland
Deutsche Bank Jonathan Blake Suzanne C. Rice Switzerland / France / Holland 16 – 18 September 2008
Slide 2: Agenda
financial transparency. Agenda 1 Solid performance in challenging markets 2 Strategy: Staying the course 3 Funding and Capital Management Investor Relations / Treasury 09/08 · 2
Slide 3: Deutsche Bank remains a relative winner through the crisis
financial transparency. Deutsche Bank remains a relative winner through the crisis Aggregate IBIT, 3Q2007-2Q2008, reported, in EUR bn 10.5 * 9.9 3.3 0.1 * 0.1 * (0.4) (18.5) (18.7) (19.8) * Diverging fiscal year Note: For peers IBIT reflects IBIT attributable to the shareholders of the parent; trans
Slide 4: Deutsche Bank 2Q2008 Highlights
financial transparency. Deutsche Bank 2Q2008 Highlights Income before income taxes of EUR 0.6 bn Group Net income of EUR 0.6 bn performance Diluted EPS of EUR 1.27 CB&S: Loss before income taxes of EUR (0.3) bn, after mark-downs of EUR 2.3 bn Segment „Stable‟ businesses: Income before inco
Slide 5: Reduction in exposures in key areas during the quarter
financial transparency. Reduction in exposures in key areas during the quarter In EUR bn Mark-downs Exposure net of hedges 31 Mar 2008 30 Jun 2008 Change 2Q2008 (1) CDO Subprime 0.0 1.8 1.4 (0.4) (1) Other U.S. RMBS 0.9 7.0 5.9 (1.2) (2) (4) Monolines 0.5 1.8 2.1 0.3 (3) (5) Commercial Real Estate 0
Slide 6: Net revenues of EUR 5.4 bn in the quarter
financial transparency. Net revenues of EUR 5.4 bn in the quarter In EUR bn (45)% (39)% 18.4 9.6 8.8 7.3 10.0 5.1 5.4 4.6 1Q 2Q 3Q 4Q 1Q 2Q 1H 1H 2007 2008 2007 2008 Note: Figures may not add up due to rounding differences Investor Relations / Treasury 09/08 · 6
Slide 7: Costs down 23% in the quarter, 24% in the half year
financial transparency. Costs down 23% in the quarter, 24% in the half year Noninterest expenses, in EUR bn (24)% (23)% 6.3 12.3 6.0 5.5 4.8 4.6 9.4 4.3 3.5 3.2 8.2 3.9 2.9 2.7 5.6 1.7 1.9 2.1 1.8 4.0 3.8 2.1 1.8 1.9 0.1 0.2 0.1 0.1 0.1 (0.1) 1Q 2Q 3Q 4Q 1Q 2Q 1H 1H 2007 2008 2007 2008 Compensation
Slide 8: CB&S: Revenues before mark-downs reached solid levels
financial transparency. CB&S: Revenues before mark-downs reached solid levels Revenues, in EUR bn Loan products / Other Origination & Advisory (16)% Sales & Trading 5.3 4.4 2.2 0.4 (2.3) 0.4 1.4 2Q2007 2Q2008 Total mark-downs 2Q2008 Reported „Pro-forma‟ before (net of hedges) Reported mark-downs Not
Slide 9: Our 'stable' businesses proved their resilience
financial transparency. Our ‘stable’ businesses proved their resilience GTB AWM Income before income taxes PBC 2003 – 2007 Quarterly development In EUR bn In EUR m >2x 854 3.0 835 832 2.6 742 Ø: 751 695 643 1.9 1.6 1.4 2003* 2004 2005 2006 2007 1Q 2Q 3Q 4Q 1Q 2Q * GTB adjusted for gain on sale of GS
Slide 10: Agenda: Strategy: Staying the course
financial transparency. Agenda 1 Solid performance in challenging markets 2 Strategy: Staying the course 3 Funding and Capital Management Investor Relations / Treasury 09/08 · 10
Slide 11: Five years of continued profit growth
financial transparency. Five years of continued profit growth In EUR bn Income before income taxes Net income 33% p.a. 48% p.a. 8.7 6.5 8.3 6.1 6.1 3.5 4.0 2.5 2.8 1.4 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 Note: 2003 – 2005 based on US GAAP; 2006 onwards based on IFRS Investor Relations
Slide 12: Performance against key targets
financial transparency. Performance against key targets Reported Target definition Pre-tax RoE Diluted EPS In % In EUR 33 29 54% p.a. 13.05 26 11.48 24 10.79 25% 16 6.95 10 4.53 2.31 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 Note: 2003-2005 based on U.S. GAAP, 2006 onwards based on IFRS Inve
Slide 13: PCAM continues to attract net new money inflows
financial transparency. PCAM continues to attract net new money inflows In EUR bn EUR 59 bn EUR 22 bn 17 15 14 13 11 10 1Q 2Q 3Q 4Q 1Q 2Q 2007 2008 Note: Figures may not add up due to rounding differences Investor Relations / Treasury 09/08 · 13
Slide 14: Leveraging our global platform for accelerated growth
financial transparency. Leveraging our global platform for accelerated growth … Capital, liquidity and Investment Banking 'Stable' businesses exposures Market conditions impact GTB: Further momentum Continue to focus on reducing structured credit exposures in critical areas Share gains in 'f
Slide 15: Longer-term trends continue to favour Deutsche Bank
financial transparency. … while longer-term trends continue to favour Deutsche Bank Trend Features Deutsche Bank strengths Regional business diversification Growth of emerging markets Global network Globalisation Geographical boundaries disappear Global capital market access Global playe
Slide 16: Agenda: Funding and Capital Management
financial transparency. Agenda 1 Solid performance in challenging markets 2 Strategy: Staying the course 3 Funding and Capital Management Investor Relations / Treasury 09/08 · 16
Slide 17: Liquidity Management
financial transparency. Liquidity Management Deutsche Bank framework Dimension Objectives Tools Safeguard liquidity position Intra-day Liquidity Manager Intra-day liquidity Management Operational Maintenance of collateral Liquidity Access to Central Banks Maximum Cash Outflow Daily cash fl
Slide 18: Liquidity Management: bucketed cashflows
financial transparency. Liquidity Management Bucketed cashflows with limits at many intervals 8-week horizon 80-week horizon Cash Net cash flow inflows profile Cash outflows 8 Week Limit Cumulative cash flow profile Daily cash flow projections are based on contractual maturity Liabilities and as
Slide 19: Liquidity Management: stress testing
financial transparency. Liquidity Management Stress testing Liquidity Risk Driver Stress Scenarios Committed Facilities & Emerging Markets Crisis Asset Backed Conduits Systemic Shock External Additional collateral (London / New York) Scenarios requirements Market Risk Evaporation of Op
Slide 20: Liquidity Management during the crisis
financial transparency. Liquidity Management during the crisis Libor – OIS Spreads Measures taken to address liquidity 120 EUR GBP USD situation 100 – Established Liquidity Committee to manage / 80 monitor liquidity on daily basis 60 – Pursued active funding diversification into 40 20 more stable
Slide 21: Strong growth of stable funding sources
financial transparency. Strong growth of stable funding sources Growth in retail deposits & clearing balances Stable deposit growth by business line, in EUR bn – PBC: strong organic deposit growth complemented by the acquisition of Berliner Bank PWM GTB PBC – GTB: Organic growth and „flight-to-qua
Slide 22: Broad and stable unsecured funding base
financial transparency. Broad and stable unsecured funding base Total unsecured funding diversification, in EUR bn Stable & other funding sources +73 -68 Short-term wholesale funding 137 119 128 2Q2008 total: 516 115 107 2Q2007 total: 511 87 27% 25% 22% 59 61 21% 45 23% 33 17% 12% 23 17 19 19 19
Slide 23: Liquidity Profile
financial transparency. Liquidity Management Liquidity Profile The liquidity profile aggregates all Liquidity Profile (as of Mar 2008) assets and liabilities across the 600 maturity profile and calculates Assets Equity mismatches per bucket (excl. 500 Liabilities secured funded assets) Mismatch 40
Slide 24: Funding Plan 2008
financial transparency. Funding Plan 2008 Total stable funding at EUR 78bn Key demand drivers for funding plan Funding Plan 2008 – Diversify away from dislocated money markets Case in EUR bn – Funding of 2008 maturities and partial pre-funding Low Base High of 2009 maturities Capital 2 2 3 – Busin
Slide 25: Capital Management: Clear strategy and strong capital position
financial transparency. Capital Management: Clear strategy and strong capital position Deutsche Bank targets a pre-tax RoE of 25%, Capital Management Strategy double-digit EpS growth over the cycle and a Organic growth strong Tier 1 ratio of 8-9% Growth [Financing RWA increase] Business performanc
Slide 26: Capital Management: Contingent Capital
financial transparency. Capital Management: Contingent Capital Dynamic capital to match dynamic assets under Basel II Volatility of capital demand higher under Contingent Capital IV & V Basel II (~15% over the cycle) Trust IV Trust V Amount: € 1bn $ 1.265bn Contingent Capital demonstrates our fo
Slide 27: Deutsche Bank ratings profile
financial transparency. Deutsche Bank ratings profile As of 12 September 2008 Senior unsecured debt Aa1 AA- AA- Short term debt P-1 A-1+ F1+ Subordinated debt Aa2 A+ A+ Hybrid Tier 1 Aa3 A A+ Outlook Stable Negative Stable Investor Relations / Treasury 09/08 · 27
Slide 28: Additional information
financial Additional information A Passion to Perform. Deutsche Bank
Slide 29: CDO subprime exposure – Trading
financial transparency. CDO subprime exposure – Trading Exposure Key features In EUR bn 31 Mar 08 30 Jun 08 Gross exposure represents long CDO positions Total Super Senior and Mezzanine in cash or synthetic form tranches: Subprime ABS CDO gross 1.8 1.4 Aggregates different vintages, locations, c
Slide 30: Other U.S. residential mortgage business exposure
financial transparency. Other U.S. residential mortgage business exposure Exposure Key features In EUR bn 31 Mar 08 30 Jun 08 Predominantly AAA-rated securities based on Other U.S. residential mortgage Alt-A collateral gross assets Alt-A 5.2 4.2 Basis risk between underlying and hedges Subprime
Slide 31: Monoline exposure related to U.S. residential mortgages
financial transparency. Monoline exposure related to U.S. residential mortgages Exposure Key features In EUR bn Fair value of Gross notional value In addition to our exposure related to U.S. bought protection of bought protection residential mortgages we had “other” monoline 31 Mar 08 30 Jun 08 31
Slide 32: Commercial Real Estate: Summary of traded whole loans
financial transparency. Commercial Real Estate: Summary of traded whole loans Composition of traded whole loans and loan commitments(1) In EUR bn 31 Mar 2008 total loans and loan commitments 16.4 FX 0.2 Purchases 0.7 Sales (1.5) 10.7 Risk reduction(2) (4.0) Other Europe / 1.6 Other 0.1 Asia / Pacifi
Slide 33: Leveraged Finance exposure: Current status
financial transparency. Leveraged Finance exposure: Current status Composition of current loans and loan commitments In EUR bn 31 Mar 2008 total loans and loan commitments 33.1 FX 0.3 Sales (7.2) 16.6 Restructured 0.1 24.5 New Commitments 1.0 1.4 Loans held (2.3) Cancelled (0.5) 30 Jun 2008 total lo
Slide 34: Reduction in total assets
financial transparency. Financial assets at FV through P&L Securities borrowed / Reduction in total assets Loans central bank funds sold 2008, in EUR bn Cash and deposits from banks Other (314) (159) 2,305 2,150 1,991 (156) Positive 715 market values 1,677 from 640 1,562 derivatives 1,395 Trading 43
Slide 35: Derivative market values and underlying credit risk
financial transparency. Derivative market values and underlying credit risk 30 June 2008, in EUR bn 640 (499) 77 (22) (36) (6) Derivatives Counterparty Exchange Collateral Sovereign & Underlying netting traded public sector credit risk derivatives Investor Relations / Treasury 09/08 · 35
Slide 36: Listed holdings: Unrealised gains of EUR 0.9 bn
financial transparency. Listed holdings: Unrealised gains of EUR 0.9 bn In EUR m Stake Market value (in %) 30 Jun 30 Jun 31 Dec 31 Mar 30 Jun 2008 2007 2007 2008 2008 Daimler AG 2.7% 3,058 2,967 1,567 1,027 Allianz SE 1.2% 1,665 1,154 867 584 Linde AG 3.8% 1,114 789 571 570 Other n.m. 416 171 141 12
Slide 37: Problem loans stable, with improved coverage ratio
financial transparency. Problem loans stable, with improved coverage ratio Problem loans not considered Problem loans, in EUR bn impaired under IFRS IFRS impaired loans(1) IFRS impaired loans coverage ratio(2) 3.2 3.3 3.1 3.1 2.9 2.8 2.6 2.6 2.7 2.5 2.5 2.4 63% 66% 64% 64% 62% 65% 31 Mar 30 Jun 30 S
Slide 38: Invested assets report
financial transparency. Invested assets(1) report In EUR bn 31 Mar 30 Jun 30 Sep 31 Dec 31 Mar 30 Jun Net new money 2007 2007 2007 2007 2008 2008 2Q2008 1H2008 Asset and Wealth Management 747 765 759 749 698 700 8 15 Asset Management 553 564 561 555 516 515 1 4 Institutional 149 155 156 158 150 155
Slide 39: Cautionary statements
financial transparency. 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