Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Bank of America Merrill Lynch Financial Conference 2011
29 slides from Deutsche Bank's conference presentation, Oct 4, 2011
Slide 1: Responding to a challenging environment
Deutsche Bank Responding to a challenging environment Dr Josef Ackermann Dr. Chairman of the Management Board and a d tthe eGGroup oup Executive ecut e Committee Co ttee Deutsche Bank Dr. Josef Ackermann Bank of America Merrill Lynch financial Conference transparency. Investor Relations 4 October 20
Slide 2: Agenda
Agenda 1 A challenging environment 2 Deutsche Bank's response 3 Outlook Deutsche Bank Dr. Josef Ackermann financial transparency. 2 Investor Relations 4 October 2011
Slide 3: A challenging environment
A challenging environment EU peripheral sovereign debt crisis Uncertain global economic recovery Dynamics in emerging markets Social unrest and political weaknesses Commodity price volatility Deutsche Bank Dr. Josef Ackermann financial transparency. 3 Investor Relations 4 October 2011
Slide 4: EU peripheral sovereign debt issues remain
EU peripheral sovereign debt issues remain Public debt: Household indebtedness: High g and rising g A further challenge g in certain key y economies Gross, in % of GDP, end of period 2010 In % of GDP 2010 Increase 189 until 2012 121 112 115 70 143 119 95 93 88 96 86 60 50 38 Greece Ireland Italy Por
Slide 5: Continued solid global growth, but pace slowing down
Continued solid global growth, but pace slowing down Downward revision of GDP growth forecasts in % June 2011 September 2011 Change of forecasts in ppt 2011E 2012E (0.2) 6.6 6.4 (0.3) (0.5) 4.3 4.5 (1.0) 4.0 4.0 (0.4) 25 2.5 2.0 1.5 1.6 United States Eurozone Emerging World World market 2011 2012 So
Slide 6: Emerging markets look resilient, but some risks on horizon
Emerging markets look resilient, but some risks on horizon Continued strengths ... … and emerging concerns Decoupling: EM growth broadly + - Inflation: Increasing risk resilient since financial crisis - Hot money: Shifting from stable Capital inflows: Strong and stable + foreign direct investm
Slide 7: Civil unrest and political instability impacting oil prices, other commodities
Civil unrest and political instability impacting oil prices, other h commodities di i similarly i il l volatile l il Oil prices Metal and agriculture Price in USD Crude Oil Brent Crude Oil WTI Indexed, 1 Jan 2010 = 100 Agriculture Precious Metals Industrial Metals 140 180 160 120 140 100 120 80 100
Slide 8: In addition to market uncertainties, banks face further sector specific challenges
In addition to market uncertainties, banks face further sector specific ifi challenges h ll Growing capital and liquidity requirements Regulation Restrictions on banking business model and activities M More constraining t i i accounting ti rules l Balance sheet utilization tili ation Competitive Sta
Slide 9: Agenda
Agenda 1 A challenging environment 2 Deutsche Bank's response 3 Outlook Deutsche Bank Dr. Josef Ackermann financial transparency. 9 Investor Relations 4 October 2011
Slide 10: Deutsche Bank's response
Deutsche Bank's response Continue to execute our strategy Address emerging risks Increase CIB profitability with Focus on core PCAM renewed risk and business at home balance sheet market leadership Continue de-risking discipline + Focus on Asia as key Focus on capital and funding Reinvigorate our dr
Slide 11: CIB's recalibrated risk model has held up well
Despite recent extreme market movements, CIB’ recalibrated CIB’s lib d risk i k model d lhhas h held ld up wellll Recent market movements vs. 4Q2008 60 VIX 10 Successfully recalibrated 5YR 225 Corp. CIB business model CDS 125 spread Substantially reduced 25 stress loss(1) 5 10 YR Treasury 4 yiel
Slide 12: CIB has a strong and diverse client-focused franchise
CIB has a strong and diverse client-focused franchise but is relatively l i l more exposed d to a slowdown l d iin E Europe Top-3 position in 50% of markets … … but more exposed to Europe Number of markets where DB ranks top 3,(1) 2010 / 2011 FY2010 % of Sales & Trading revenues from Europe 37 46% 4
Slide 13: On track to deliver synergies from integration
On track to deliver synergies from integration, b environment but i necessitates i ffurther h cost controll On track to hit CIB synergy target Future CB&S restructuring measures In EUR m 2011 synergy target 2011 target achieved in 1H2011 1H2011 actual ― Significant unabating slowdown in client 55% v
Slide 14: Our strategy in classic banking pays strong dividends
Our strategy in classic banking pays strong dividends Classic banking contribution Significantly strengthened franchise Reported NIBT in EUR m AWM PBC GTB Strong performance across all major products Growth Fee income remains robust and leading 1H2009- GTB market position maintained 2,211 1H2011
Slide 15: Significant investments in classic banking businesses starting to yield strong benefits
Significant investments in classic banking businesses starting i to yield i ld strong b benefits… fi Run-rate synergy target In EUR bn 1H2011 actual Target achieved in 1H2011 Timing Price paid Synergies Postbank 12% 2008-2010 5.9(1) PBC >1.0 Sal. 45% Oppenheim 2009-2010 1.0 ~0.2 PWM ABN Amro 19% 0.7
Slide 16: ...contributing to a sustainably improved portfolio balance
...contributing to a sustainably improved portfolio balance Sh Share off income i b before f iincome ttaxes Investment banking (CB&S) Cl Classic i banking b ki (PCAM / GTB) (1) 60% <60% 71% 73% 40% >40% 29% 27% 2009 2010 1H2011 2013E Continued rebalancing towards less volatile earnings (1) 19.99% st
Slide 17: Achievements in Asia
Achievements in Asia Strengthened market position On track to achieve 4 bn target in 2011 2008 Current Net revenues Asia / Pacific excl. excl Japan Japan, in EUR bn FX #1 #1 ~4(3) Fixed #3 #1 CB&S(1)) Income +21% p.a. 3 Cash Equities #10 #3 Corp. Finance #7 #3 2 O erall Overall #4 #4 GTB(2
Slide 18: Performance culture: Key initiatives represent EUR 2.3 bn of cost savings
Performance culture: Key initiatives represent EUR 2.3 bn off cost savings i Of which achieved in 1H2011 Run-rate cost savings g pp.a. ― Rationalised corporate coverage, risk and support CIB activities EUR 0.5 bn integration 25% ― Standardised cost and other policies ― Harmonised processes, administ
Slide 19: Deutsche Bank's response
Deutsche Bank's response Continue to execute our strategy Address emerging risks Increase CIB profitability with Focus on core PCAM renewed risk and business at home balance sheet market leadership Continue de-risking discipline + Focus on Asia as key Focus on capital and funding Reinvigorate our dr
Slide 20: GIIPS exposure well-contained
GIIPS exposure well-contained Net sovereign exposure In EUR m 31 December 2010 30 June 2011 237 296 (70)% Ireland 12,120 8 011 8,011 153 2,283 , 997 1 601 1,601 (12) 1,154 3,669 Portugal 1,070 Italy Spain Greece Total Deutsche Bank Dr. Josef Ackermann financial transparency. 20 Investor Relations 4
Slide 21: We have actively reduced 'legacy' risk
We have actively reduced ‘legacy’ risk I EUR bn, In b as off period i d end d x Change (in %) Level 3 assets Monoline exposure Derivatives Other level 3 assets CVA Fair value after CVA (48) (58) 88 8.3 58 5.2 49 47 43 4.3 46 3.5 25 18 18 6.1 39 33 29 4.0 3.1 27 2.5 2008 2009 2010 1H2011 2008 2009 20
Slide 22: Further building on strong capitalization
Further building on strong capitalization Development of Core Tier 1 ratio + 1.5 ppt 10.2% (1) 8.7% - Basel 2.5 >8% (1) >9% - Basel B l3 + De-risking + Retained earnings Dec 2010 Jun 2011 Jan 2013 Dec 2013 1H2011 2013 outlook — 30 June Core Tier 1 ratio of 10.2%, — EUR 90 bn RWA reduction identified
Slide 23: Funding and liquidity strength continues
Funding and liquidity strength continues Strategic shift to higher quality Liquidity Reserves and funding markets funding sources access strong As at 30 June, June in EUR bn As at 30 June 2011 2011, in EUR bn 629 Post June 617 2011 + 94% - 48% 8% > 150 318 325 113 2007 2011 2007 2011 Higher quality
Slide 24: Agenda
Agenda 1 A challenging environment 2 Deutsche Bank's response 3 Outlook Deutsche Bank Dr. Josef Ackermann financial transparency. 24 Investor Relations 4 October 2011
Slide 25: Not all assumptions for 2011 target have materialized
Not all assumptions for 2011 target have materialized Assumptions as of February 2011 Development / current situation — No further major market dislocations Challenging and instable market conditions in 2H2011 — Normalization of asset valuations Equities q down 10% or more 2011 YTD — Global reve
Slide 26: EUR 10 bn target no longer within reach in 2011
EUR 10 bn target no longer within reach in 2011 Phase 4 potential 2011 1H2011 Status Corporate Banking & 6.4 3.3 Significantly below plan Securities Global Transaction 1.0 0.5 At plan Banking Asset and Wealth 1.0 0.4 Below plan Management Private & Business 1.6 1.2 Well above plan Clients Total busi
Slide 27: DB remains well-positioned against long-term trends
DB remains well-positioned against long-term trends Secular trends... ...play to DB’s strengths ― Private P i t retirement ti t ― World-class W ld l iinvestment t t provisioning banking Global asset accumulation ― Emerging market ― Leading retail asset wealth creation manager in Europe ― Rebalancing
Slide 28: We have delivered for shareholders across the cycle
We have delivered for shareholders across the cycle 2002 / 2003 2004-2005 2006-2007 2009-2011 Phase IV Phase III Phase II Phase I Accelerate Reposition / growth / share recalibrate after Profitable the financial Refocus growth with gain in the face business after of extreme crisis balance sheet inte
Slide 29: Cautionary statements
Cautionary statements This presentation contains forward forward-looking looking statements. Forward Forward-looking 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 b
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