Deutsche Bank AG · XETR:DBK
Deutsche Bank — Debt Investor Presentation (October 2009)
33 slides from Deutsche Bank's debt investor presentation, Oct 6, 2009
Slide 1: Fixed Income Investor Roadshow
Deutsche Bank Fixed Income Investor Roadshow Denmark / Norway / Finland 6 – 7 October 2009
Slide 2: Agenda
Agenda 1 G Group Performance P f 2 Funding and Capital Management Investor Relations / Treasury 10/09 · 2
Slide 3: Well prepared for a changing landscape
Well prepared for a changing landscape 30 June 30 June 2008 2009 Income before income taxes (1H2009, in EUR bn) 0.4 3.1 Profitability N t income Net i (1H2009 iin EUR b (1H2009, bn)) 05 0.5 23 2.3 Pre-tax RoE (target definition)(1) (4)% 20% Tier 1 capital ratio 9.3% 11.0% Capital strength Core Tier
Slide 4: Significant de-leveraging
Significant de-leveraging Balance sheet, in EUR bn 30 June 2008 30 June 2009 Leverage g ratio(2) 3838 1,991 (31%) 1,733 32 1,338 Target: 28 25x (653) 928 25 24 (805) IFRS Netting(1) U.S. U S GAAP IFRS Netting N tti (1) U.S. U S GAAP J Jun S Sep D Dec M Mar J Jun ‘pro-forma’ ‘pro-forma’ 2008 2009 (1)
Slide 5: Loan book
Loan book xx IAS 39 impact on CIB loan book In EUR bn 23% CI 25 34 38 37 CIB PCAM 31 Mar 30 Jun 30 Sep 31 Dec 31 Mar 30 Jun 2008 2009 Germany excl. financial institutions: 86 87 88 93 96 96 Note: Total incl. CI / Other; figures may not add up due to rounding differences Investor Relations / Treasury
Slide 6: Strong underlying revenues in Sales & Trading
Strong underlying revenues in Sales & Trading Sales & Trading revenues, in EUR bn Additional de- de Debt and equity revenues M kd Mark-downs risking 1.1 1.0 0.1 1.4 5.1 2.1 44 4.4 43 4.3 40 4.0 3.2 3.2 3.5 2.7 2.2 2.2 2.1 1.4 1Q 2Q 1Q 2Q 1Q 2Q 1Q 2Q 1Q 2Q 1Q 2Q 2004 2005 2006 2007 2008 2009 Note: Fi
Slide 7: Successful recalibration of a diversified platform
Successful recalibration of a diversified platform Revenues by business area Indicative Debt and other p products Equity q y Pre-crisis Current* Pre-crisis Current* Com- EM Com- EM MM & FX Prop Prop modities modities MM & FX Cash Cash Prime P i Prime Broke Broke- rage rage Credit Rates Credit Rates
Slide 8: The revenue outlook remains favourable
The revenue outlook remains favourable Margins Volumes Average bid ask spreads in CDX index Average daily volume on Global Markets platform FX Money Markets 20 18 16 14 12 Pre- Peak Current Pre- Peak Current 10 crisis crisis 8 >2x 2 Interest rate derivatives Equities 6 4 Pre crisis level 2 0 Jan- Oc
Slide 9: Corporate Finance has captured share in tough conditions
Corporate Finance has captured share in tough conditions Corporate Finance revenues M&A announced In EUR m Advisory Ad i Ranking by volume in USD bn Origination 2008 Global 2Q09 1 Goldman Sachs 851 1 Morgan Stanley 409 2 JP Morgan 779 2 Goldman Sachs 352 3 Citi 699 3 JP Morgan 304 4 BoA/Merrill Lync
Slide 10: GTB: Significant additional revenue potential ...
GTB: Significant additional revenue potential ... 2004 – 1H2009 IBIT Upside potential I EUR m In 1H Business External drivers 1,106 Cash Normalisation of interest rates 945 Management Rising cross border payments 705 Trade Recovery in global trade volumes Fi Finance Stabilisation St bili ti
Slide 11: ... with benefits from flight to quality
... with benefits from flight to quality Pipeline volume* Cash Management Corporates Trade Finance Won Pending +36% Lost +34 % 1H2008 1H2009 1H2008 1H2009 * Pipeline volume: Prospective revenues from deals acquired in the period with win probability > 25% Investor Relations / Treasury 10/09 · 11
Slide 12: AWM: Operating leverage due to efficiency measures
AWM: Operating leverage leverage, due to efficiency measures Income before income taxes Efficiency measures largely complete In EUR m 242 Asset Management 188 FTE reduction to-date to date of ~ 600 Direct cost reduction (2009 run rate)(2): (850) ─ EUR 130 m / 5% vs. 2008 ─ EUR 320 m / 22% vs vs.
Slide 13: PBC: Implementation of efficiency measures
PBC: Implementation of efficiency measures Income before income taxes Results of efficiency program In EUR m Severance(1) Key measures Middle-office consolidation 4 5 Integration of credit operations 6 Back-office efficiency 15 Central overhead reduction 304 328 262 150 Results 106 206 FTE
Slide 14: Strategic optionality in Germany
Strategic optionality in Germany [ ]% = Market share Customers / AuM in German market Retail asset management Private wealth management Retail banking AuM, March 2009 AuM, December 2008 Number of customers, million in EUR bn in EUR bn December 2008 117 ~25% Sal. Opp. 51 Sparkassen 50 Deka 98 47 ~20%
Slide 15: Agenda
Agenda 1 G Group Performance P f 2 Funding and Capital Management Investor Relations / Treasury 10/09 · 15
Slide 16: Funding and Liquidity: quantity, quality and consistency
Funding and Liquidity: quantity, quantity quality and consistency In EUR bn Unsecured U secu ed funding u d g Long-Term o g e Issuance ssua ce 511 479 Cash and liquidity reserves significantly 30% 14% 68 exceed short-term 153 wholesale funding Σ+36 Σ+22 139 103 + 53 411 81 358 30 Jun 2007 30 Jun 200
Slide 17: Funding Plan 2009: Completed
Funding Plan 2009: Completed Modest requirements for 2009 in light of nearly Funding Plan 2009 €100b iissuance iin 2007 €100bn 2007-2008 2008 in EUR bn Plan YTD Capital 2 1.5 Key demand drivers for funding plan Plain Vanilla Senior 4 4.6 – Balance sheet shrinkage reduced unsecured funding Struct
Slide 18: Attractive funding without government aid possible
Attractive funding without government aid possible DB YTD issuance (non-government guaranteed) vs. government guaranteed issuance of banks* 2009 trends / key features Average issuance lower cost, longer 200 Issuance maturity than guarantee schemes Spain markets Average issuance far lower cost th
Slide 19: DB's benchmark issuance strategy during the crisis
DB’s DB s benchmark issuance strategy during the crisis Aug ‘07 to June ‘08 Benchmark Issuance: DB vs Peers1) DB sourced €30bn via benchmark transactions in 350 Deutsche Bank 350 European Peer the beginning of the crisis US Peer 300 European Peer 300 July ‘08 to July ‘09 DB 5 year € new issue sp
Slide 20: DB's European Retail Network
DB’s DB s European Retail Network Key contributor of liquidity Belgium: € 0.2bn Germany: € 4.7bn S it l d € 0.1bn Switzerland: 0 1b Portugal: € 0.1bn Italy: € 1.7bn S i € 0.5bn Spain: 0 5b Total in 2009: € 7.3bn Investor Relations / Treasury 10/09 · 20
Slide 21: Liquidity Management
Liquidity Management Structural liquidity profile positive across all term buckets The liquidity profile aggregates all Liquidity Profile (as of June 2009), in €bn assets and liabilities across the maturity profile and calculates the 300 Assets cumulative net position per bucket Equity 250 Asset
Slide 22: Liquidity Management: Strategic Liquidity Reserve
Liquidity Management Strategic Liquidity Reserve (SLR) Deutsche Bank has created a Strategic Strategic Liquidity Reserve, in €bn Liquidity Reserve which it has substantially 60 increased between Dec-07 and Dec-08 (+€48bn) 50 The SLR constitutes portfolios of liquid 40 securities and other measur
Slide 23: Capital ratios have been strengthened
Capital ratios have been strengthened 11.0 Target: ~10% 1Q 2Q 3Q 4Q 1Q 2Q 2008 2009 Tier 1 ratio, in % Core Tier 1 ratio, in % RWA, in EUR bn Note: Core Tier 1 ratio = Tier 1 capital less Hybrid Tier 1 Capital divided by RWAs Investor Relations / Treasury 10/09 · 23
Slide 24: Increasing Tier 1 capital during the crisis
Increasing Tier 1 capital during the crisis €12.2bn of capital raised crisis-to-date 5.3 1.9 32 5 32.5 3.2 (4.9) 26.0 0.9 EUR 12.2 bn of capital raised1) 30 June 2007 Net Equity Hybrid Other Other 30 June 2009 income Capital Capital Capital measures Raisings Raisings2) Raisings3) & effects4) 1) Incl
Slide 25: Capital strength in peer context
Capital strength in peer context As of 30 June 2009, in % Impact of state capital Tier 1 ratio excluding state capital 10 7 10.7 7.5 (1) (2) (1) As of 26 Jun 2009 (2) Based on Basel I Note: Figures may not add up due to rounding differences Source: Company data, Bloomberg Investor Relations / Treasu
Slide 26: Additional information
financial transparency. Additional information Roadshow A Passion to Perform. Deutsche Bank
Slide 27: Deutsche Bank's credit ratings profile
Deutsche Bank’s Bank s credit ratings profile As of 23 September 2009 Senior unsecured debt Aa1 A+ AA- Outlook Negative Stable Negative Short term debt P1 P-1 A1 A-1 F1+ Investor Relations / Treasury 10/09 · 27
Slide 28: In all categories, risk mitigants exist
In all categories, categories risk mitigants exist As of 30 June 2009, in EUR bn xx 2Q2009 provision for loan losses, in EUR m Low risk ((64%)) Moderate risk ((23%)) Higher g risk (13%) ( ) 147 156 677 268 Collateralised; Low loan to value 36 Substantially hedged & diversified Highly diversifi
Slide 29: Problem loans
Problem loans xx IAS 39 impact - IFRS impaired loans In EUR bn 8.2 5.7 4.6 6.7 3.9 4.5 3.2 3.3 3.7 3.2 27 2.7 25 2.5 06 0.6 08 0.8 11 1.1 26 2.6 62% 65% 53% 53% 50% 46% 31 Mar 30 Jun 30 Sep 31 Dec 31 Mar 30 Jun 2008 2009 Problem loans not considered impaired under IFRS IFRS impaired loans coverage r
Slide 30: Provision for credit losses
Provision for credit losses Related to IAS 39 reclassified assets In EUR m 1 526 1,526 1,000 591 526 236 799 114 135 492 249 406 308 164 1Q 2Q 3Q 4Q 1Q 2Q 1H 1H 2008 2009 2008 2009 Thereof: CIB (11) (9) 66 361 357 779 (20) 1,136 125 145 169 229 169 221 270 391 Thereof: PCAM Note: Divisional figures
Slide 31: Risk-based analysis of monoline exposure
Risk-based analysis of monoline exposure Fair value assets, as of 30 June 2009, in EUR bn Risk category g y Non-investment g grade monolines AA monolines FV assets FV assets Provision- FV assets Provision- FV assets prior to prior to ing ratio after CVA ing ratio after CVA U S RMBS U.S. CVA CVA Su
Slide 32: Value of Level 3 assets
Value of Level 3 assets((1)) Asset sset c classes asses 2Q2009 Q 009 development de e op e t In EUR bn Key changes: 88 (20)% – Reduction in derivatives market values 80 – Sales and unwinds 64 – Net transfer from Level 3 to Level 2 31 D Dec 2008 31 M Mar 2009 30 JJun 2009 Financial assets AfS / Oth
Slide 33: Cautionary statements
Cautionary statements Unless otherwise indicated, the financial information provided herein has been prepared under International Financial Reporting Standards (IFRS). (IFRS) This presentation contains forward-looking statements. Forward-looking statements are statements that are not historical fact
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