Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Deutsche Bank German Corporate Conference 2007
29 slides from Deutsche Bank's conference presentation, Jun 20, 2007
Slide 1: Deutsche Bank German Corporate Conference
Deutsche Bank Michael Cohrs Member of the Group Executive Committee Deutsche Bank German Corporate Conference Frankfurt, 20 June 2007
Slide 2: Agenda
financial transparency. Agenda 1 Deutsche Bank Group 2 The Corporate and Investment Bank Investor Relations 06/07 · 2
Slide 3: The current phase of our strategy
financial transparency. The current phase of our strategy Management Agenda Phase 1 Management Agenda Phase 2 2002 – 2003: 2004 – 2005: Refocusing the business Growth and 25% RoE Management Agenda Phase 3 2006 – 2008 Leveraging our global platform for accelerated growth Maintain our cost, risk capit
Slide 4: Revenue momentum, combined with cost and risk control
financial transparency. Revenue momentum, combined with cost and risk control ... In EUR bn Net revenues Noninterest expenses Provision for credit losses 10% CAGR 5% CAGR 28.5 1.1 25.6 19.2 19.9 (72)% 17.4 17.5 21.3 21.9 0.3 0.4 0.3 2003 2004 2005 2006 2003 2004 2005 2006 2003 2004 2005 2006 Note: 2
Slide 5: Creates considerable operating leverage
financial transparency. … creates considerable operating leverage … In EUR bn Income before income taxes Net income 8.3 45% CAGR 65% CAGR 6.1 6.1 4.0 3.5 2.8 2.5 1.4 2003 2004 2005 2006 2003 2004 2005 2006 Note: 2003 – 2005 based on U.S. GAAP; 2006 based on IFRS Investor Relations 06/07 · 5
Slide 6: Significant growth in returns
financial transparency. … significant growth in returns … 1st quarter Pre-tax RoE (target definition)(1) Diluted EPS (target definition)(2) In % In EUR 1ppt 40 41 10.24 31 25 6.95 16 4.53 13 3.88 2.31 2.87 35% 2003 2004 2005 2006 1Q 1Q 2003 2004 2005 2006 1Q 2006 2007 2007 (1) 2003-2004 underlying;
Slide 7: Delivery to shareholders
financial transparency. Delivery to shareholders Dividend per share Cash returned to shareholders In EUR In EUR bn 4.00 12.9 32% CAGR Dividends 5.7 2.50 1.70 1.50 1.30 Share 7.2 retirements 2002 2003 2004 2005 2006 2002 - 2006 Investor Relations 06/07 · 7
Slide 8: Vision 2008 and group targets
financial transparency. Vision 2008 and group targets Group targets “over-the-cycle” Vision 2008 Income before income tax expense*, in EUR bn Corporate Banking & Securities 5.3 Sustainable profitability 6.3 of 25% pre-tax RoE Global Transaction Banking 1.0 Maintaining Maintaining Asset and Wealth Ma
Slide 9: Agenda
financial transparency. Agenda 1 Deutsche Bank Group 2 The Corporate and Investment Bank Investor Relations 06/07 · 9
Slide 10: What is the Corporate and Investment Bank?
financial transparency. What is the Corporate and Investment Bank? CIB management structure Global Markets Global Banking Client Coverage Client Coverage Global Research Capital Market Sales The Institutional Client Group (ICG) Country Industry Groups Products Distressed Products Products Emerging M
Slide 11: A leading global investment bank
financial transparency. A leading global investment bank Revenues CIB 1Q2007, in EUR bn Transaction 7.2 banking 6.8 6.7 6.7 (1) 0.6 5.8 Loan 0.3 products 0.8 5.0 4.1 3.9 Investment 3.3 banking 5.1 Sales & Trading (2) (2) (2) GS C DB JPM MS MER CS UBS LEH Change vs. 1Q2006 In EUR 10% 13% 18% 11% 25%
Slide 12: Market leadership in sales and trading
financial transparency. Market leadership in sales and trading … Revenues Sales & Trading 1Q2007, in EUR bn 5.9 5.1 2.4 4.4 Equity 1.7 3.9 3.9 1.7 3.3 3.1 1.1 3.1 1.8 2.7 Debt 1.2 1.9 1.3 1.0 3.5 3.4 2.7 2.9 2.1 2.0 1.7 1.4 1.6 GS DB MS MER C UBS JPM CS LEH Change vs. 1Q2006 In EUR 11% 16% 21% 30% 1
Slide 13: Thanks to a well diversified business portfolio
financial transparency. ... thanks to a well diversified business portfolio Global Markets revenues, 2006 By region By product Prime Asia Pacific Equity Brokerage Prop Americas Structured Germany Equity Credit By client Cash Equity Commod- Government ities Europe Money Corporates EM (ex Germany) Man
Slide 14: Global Markets is superbly positioned for stable growth
financial transparency. Global Markets is superbly positioned for stable growth Sales & Trading (debt / equity) revenues Illustrative Equities Prop Credit Prop Proprietary risk Rates Prop Proprietary risk FX Prop Cash Equities Foreign Exchange Market access Market access Government Bonds Corporate B
Slide 15: Global Markets strategic positioning
financial transparency. Global Markets strategic positioning: Strongest in large, high-growth markets Underweight In-line Overweight Strong competitive position US Equities International Equities Structured Credit in a significant market Products Cash Credit Prime Finance Structured Rate
Slide 16: Global Banking's two key goals
financial transparency. Global Banking’s two key goals Corporate Become top 5 globally by fee league tables and profitability Finance Global Transaction Achieve EUR 1 billion pre-tax profit in 2008 Banking Investor Relations 06/07 · 16
Slide 17: Corporate Finance: a Top 5 position is attainable
financial transparency. Corporate Finance: a Top 5 position is attainable In USD bn Corporate Finance fees and regional ranking, 2006 Rank Market share (%) 1 JPM 1 5 2 7.7 2 GS 2 2 5 7.1 3 Citi 3 4 4 6.9 4 CS 4 3 4 5.5 5 MS 7 9 3 5.4 6 UBS 9 1 6 Gap: ± 10% 5.1 7 DB 10 6 1 5.0 8 ML 6 8 8 5.0 9 Lehman
Slide 18: Strong growth in the global fee pool, especially Europe and Asia
financial transparency. Strong growth in the global fee pool, especially Europe and Asia In USD bn Corporate Finance fee pool Total fees / share by region 30 63 97 63 4% Japan 5% 7% 6% 24% CAGR 9% Asia Pacific since 2002 14% 51 (ex. Japan) 48 45 45 35% 38% 36 36 36 39% EMEA 32 30 26 55% 47% 40% Amer
Slide 19: Larger deals are driving the M&A market
financial transparency. Larger deals are driving the M&A market In EUR bn Global M&A announced volume Deal size Growth 2006 vs 2005 CAGR 2,530 23% 1,944 EUR 10 bn+ 81% 1,344 EUR 5 – 10 bn (16)% 1,105 1,015 EUR 1 – 5 bn 27% EUR 500 m – 1 bn 54% <EUR 500 m 4% 2002 2003 2004 2005 2006 Source: Dealogic.
Slide 20: Powerful drivers of M&A growth
financial transparency. Powerful drivers of M&A growth In USD bn Rising Financial Sponsor activity Explosive growth in LBO volume Announced volume 700 17% 300 15% 600 Asia 13% 250 EMEA 500 11% 400 9% 200 300 7% 150 5% 200 Americas 3% 100 100 1% 50 0 -1% 2003 2004 2005 2006 0 FS buyout volume (lhs) 2
Slide 21: Private Equity purchasing power exceeds $1 trillion
financial transparency. Private Equity purchasing power exceeds $1 trillion In USD bn Private Equity funds raised 522 475 ROW 432 Europe 278 199 173 144 Americas 119 2001 2002 2003 2004 2005 2006 2007E 2008E Source: Private Equity Intelligence Investor Relations 06/07 · 21
Slide 22: Global Banking strategic positioning
financial transparency. Global Banking strategic positioning Underweight In-line Overweight Strong competitive position ECM – Americas M&A – EMEA Leverage Finance in a significant market Products M&A – Americas ECM – EMEA Commercial Real Estate Underweight position GTB – Americas Inv
Slide 23: Deutsche Bank is a leading banker to Financial Sponsors
financial transparency. Deutsche Bank is a leading banker to Financial Sponsors Global Financial Sponsors fee pool Deutsche Bank 1Q2007 rank & share In EUR bn 24% CAGR 10.5 9.5 7.8% 8.4 5.3% 5.6 #3 #8 2003 2004 2005 2006 Corporate Finance Financial Sponsors total Source: Dealogic Investor Relations
Slide 24: Corporate Finance – the road to sustainable Top 5
financial transparency. Corporate Finance – the road to sustainable Top 5 Goal Strategy Fee pool market share, in % Sustainable 1 Grow market share in Americas Top 5 6% profitably #6 #7 5% 2 Build out emerging markets to capture growth and to mitigate margin erosion 4% 3 Coverage intensity aligned t
Slide 25: GTB: outstanding progress
financial transparency. GTB: outstanding progress Outstanding profit growth Cost efficiency among best in class Net income before income taxes, in EUR m Cost / income ratio 1st quarter 705 95% 90% CAGR 46% 85% 433 Société Générale 80% 254 75% BNP Paribas 228 * 70% JPMorgan Chase 18% * 181 214 65% Ci
Slide 26: Leadership in key products
financial transparency. Leadership in key products Product Rank Market share Euro clearing(1) 1 17% USD clearing(2) 5 8% Export LCs Germany(3) 1 23% Trustee for US Asset & Mortgage 2 22% Backed Securities(4) US Debt (all) Trustee(5) 2 13% Trade Finance Loans(6) 2 7% (1) Bundesbank: RTGS+/Target (as
Slide 27: GTB – the road to EUR 1 billion
financial transparency. GTB – the road to EUR 1 billion Income before income taxes, in EUR m Goal Strategy 1 More organic topline growth – focus on EUR 1 bn Europe 2 Continued cost discipline 705 3 Benefit from restructured Asian business 4 Build out other emerging markets 433 5 Bolt-on acquisitions
Slide 28: In summary: Global Banking is well positioned to deliver
financial transparency. In summary: Global Banking is well positioned to deliver Corporate Become top 5 globally by fee league tables and profitability Finance Strength in fast-growing regions (Europe, CEEMEA, Non-Japan Asia) Market sweet spots (Financial sponsors, commercial real estate, levera
Slide 29: Cautionary statements
financial transparency. Cautionary statements Unless otherwise indicated, the financial information provided herein has been prepared under the International Financial Reporting Standards (IFRS). It may be subject to adjustments based on the preparation of the full set of financial statements for 20
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