Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Shareholder Meeting (May 2014)
37 slides from Deutsche Bank's shareholder meeting presentation, May 22, 2014
Slide 1: Deutsche Bank AG Annual General Meeting 2014
Deutsche Bank Deutsche Bank AG Annual General Meeting 2014 Jürgen Fitschen and Anshu Jain Co-Chief Executive Officers Frankfurt, 22 May 2014
Slide 2: Strategy 2015+
Strategy 2015+ Capital Costs Competencies Clients Culture Deutsche Bank Annual General Meeting 2014 1
Slide 3: Where did we start?
Where did we start? Challenging environment Deutsche Bank Market leader in Germany Global economy Global network – strong brand Leadership in key businesses Regulation Capital deficiency Inefficient platform Public trust Significant legacy matters Deutsche Bank Annual General Meeting 201
Slide 4: Our response: A historic repositioning of Deutsche Bank
Our response: A historic repositioning of Deutsche Bank Optimizing Capital and Building a Cultural Team spirit core balance sheet best-in-class change businesses transformation infrastructure Deutsche Bank Annual General Meeting 2014 3
Slide 5: We have already strengthened our capital base significantly…
We have already strengthened our capital base significantly… In %, period end Capital ratio Leverage ratio CRD4 CET1 ratio, fully loaded CRD4 leverage ratio, adjusted(1) 9.5 3.2 2.6 <6.0 Jun 2012 Mar 2014 Jun 2012 Mar 2014 Note: Throughout this document, CRD4 ratios for dates prior to 31 March 2014
Slide 6: …and keep strengthening it
…and keep strengthening it In %, period end ~EUR 8bn capital raise Use of proceeds CRD4 CET1 ratio, fully loaded Capital strength 11.8 9.5 <6.0 Competitiveness Clients Jun 2012 Mar 2014 Mar 2014 pro forma(1) (1) After ~EUR 8 bn capital raise Deutsche Bank Annual General Meeting 2014 5
Slide 7: Our Operational Excellence program is ahead of target
Our Operational Excellence program is ahead of target In EUR bn Reduction in cost base Operational Excellence Adjusted cost base Cumulative cost savings, period end 4.5 (2.0) 25.1 2015 23.1 2.3 2014 2013 2012 Starting point FY 2013 Mar 2014 Targets 2012(1) (1) 1H 2012 annualized Deutsche Bank Annual
Slide 8: 2013: One of our best ever operating performances
2013: One of our best ever operating performances Full year, Core Bank(1) adjusted IBIT(2), in EUR bn Strategy Growth & Expansion Crisis Recalibration 2015+ 8.4 8.3 8.3 8.5 7.8 7.6 6.5 4.8 5.2 (5.6) 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013(3) (1) Group excluding NCOU from 2012 onwards (see
Slide 9: Our core businesses are well positioned
Our core businesses are well positioned CB&S PBC GTB DeAWM Strong Building an Global Integration performance integrated leadership and innovation despite franchise headwinds Deutsche Bank Annual General Meeting 2014 8
Slide 10: We are placing our clients at the core of our organization
We are placing our clients at the core of our organization Serving German clients globally... …and global clients locally Deutsche Bank Annual General Meeting 2014 9
Slide 11: We have laid the foundation of cultural change
We have laid the foundation of cultural change Integrity Innovation Sustainable Discipline Performance Client Partnership Centricity Deutsche Bank Annual General Meeting 2014 10
Slide 12: We aspire to be the leading client-centric global universal bank
Reconfirming our vision We aspire to be the leading client-centric global universal bank Deutsche Bank Annual General Meeting 2014 11
Slide 13: 2013: Results at a glance
2013: Results at a glance Full year, in EUR bn, unless otherwise stated Group 2013 2012 Net revenues 31.9 33.7 Performance Total noninterest expenses 28.4 31.2 highlights Income before income taxes 1.5 0.8 Regulatory CET1 ratio(2) 9.7% 7.8% ratios(1) Leverage ratio(3) 3.1% 2.6% Dividend and share Di
Slide 14: A year with significant burdens
A year with significant burdens Full year 2013, in EUR bn 8.5 0.5 5.2 1.4 Legacy issues(1) 1.8 NCOU(2) 3.4 1.5 Group Dealing with Investing in Required Core Bank reported IBIT the past the future(3) accounting adjusted IBIT adjustments(4) EUR 7 bn (1) Includes Core Bank-related litigation; impairmen
Slide 15: Your bank has become considerably safer
Your bank has become considerably safer Period end, unless otherwise stated More efficient Better funded Better balanced Total assets (adjusted), Share of financing sources Core Bank adjusted IBIT (FY)(4) in EUR bn(1) ~(30)% DeAWM 1,521 GTB Other(2) PBC 1,066 Most CB&S stable funding(3) 2006 2013 20
Slide 16: 1st Quarter 2014: Solid underlying performance
1st Quarter 2014: Solid underlying performance 1Q 2014, in EUR bn 2.6 0.1 0.3 1.7 0.5 Group Dealing with Investing in Required Core Bank reported IBIT the past the future(1) accounting adjusted IBIT (NCOU) adjustments(2) EUR 0.9 bn (1) CtA and other severances (2) Credit / Debt / Funding Valuation A
Slide 17: Changes in our environment…
Changes in our environment… Increased costs of Improved Macro Tighter compliance and competitive headwinds regulation litigation dynamics Deutsche Bank Annual General Meeting 2014 16
Slide 18: …which we address decisively
…which we address decisively In %, period end ~EUR 8 bn capital raise Capital ratio CRD4 CET1 ratio, fully loaded ~EUR 1.75 bn already placed with an anchor investor 11.8 9.5 ~EUR 6.3 bn rights issue <6.0 2 ½ weeks subscription period from early June Full dividend entitlement for 2014 Jun 2012 Mar 2
Slide 19: We generate savings and invest as never before
We generate savings and invest as never before Operational Excellence Savings Investments Cumulative savings, period end, in Examples Examples EUR bn 4.5 ~1,300 ~EUR 1.4 bn applications platform integration 2015 2.3 ~EUR 0.9 bn 2014 >18,000 standardization / vendors automation 2013 ~EUR 0.6 bn 2012
Slide 20: Our opportunity: Change in client needs
Our opportunity: Change in client needs Demographic Digitalization change and Economic growth in Dynamics in of banking concentration of the US emerging markets wealth Deutsche Bank Annual General Meeting 2014 19
Slide 21: CB&S: Global leadership
CB&S: Global leadership Adjusted IBIT(1), in EUR bn Full year 1st Quarter Outlook Accelerate focused 4.9 4.8 growth strategy in the US Optimize resource 1.9 allocation 1.6 Further recalibrate business mix 2012 2013 2013 2014 (1) Adjusted for litigation, CtA, other severances, impairment of goodwill
Slide 22: PBC: Integration and innovation
PBC: Integration and innovation Adjusted IBIT(1), in EUR bn Full year 1st Quarter Outlook 2.1 Accelerate investment 2.0 in digital banking Further increase profitability 0.6 0.6 Navigate tough earnings environment 2012 2013 2013 2014 (1) Adjusted for litigation, CtA, other severances, impairment of
Slide 23: GTB: Performing despite headwinds
GTB: Performing despite headwinds Adjusted IBIT(1), in EUR bn Full year 1st Quarter Outlook 1.3 Extend coverage of multi-national 1.1 corporates Acquire new clients 0.4 0.3 Maintain resource efficiency and risk discipline 2012 2013 2013 2014 (1) Adjusted for litigation, CtA, other severances, impair
Slide 24: DeAWM: Building an integrated franchise
DeAWM: Building an integrated franchise Adjusted IBIT(1), in EUR bn Full year 1st Quarter Outlook 1.2 Expand number of Wealth Management relationship managers Further enhance 0.6 offering and service 0.2 0.2 Improve efficiency, increase margins 2012 2013 2013 2014 (1) Adjusted for litigation, CtA, o
Slide 25: We are closer to our clients than ever before
We are closer to our clients than ever before Embedding client Delivering global Strengthening centricity in the capabilities locally footprint in Germany organization Deutsche Bank Annual General Meeting 2014 24
Slide 26: We want to earn trust...
We want to earn trust... Integrity Innovation Sustainable Discipline Performance Client Partnership Centricity Deutsche Bank Annual General Meeting 2014 25
Slide 27: …and embed cultural change into our organization
…and embed cultural change into our organization ̶ Introduced consequences for non-completion of compliance trainings Behavior ̶ Embedded values and beliefs into performance review ̶ Extended deferral period of variable Compensation compensation from 3 to max. 5 years ̶ Strengthened clawbacks ̶ Inte
Slide 28: Strategy 2015+: We provide an update on our aspirations...
Strategy 2015+: We provide an update on our aspirations... Capital >10% CET1 ratio(1) Leverage ratio(1) ~3.5% by end of 2015 Savings(2) EUR 4.5 bn by end of 2015 Costs CIR ~65% adjusted in 2015(3) ~65% reported in 2016(6) Post-tax RoE(4) ~12% adjusted in 2015(6) ~12% reported in 2016(6) Long-term re
Slide 29: We aspire to be the leading client-centric global universal bank
…and reconfirm our vision We aspire to be the leading client-centric global universal bank We are one of a handful of banks able to deliver on this vision – and the only one based in Europe Deutsche Bank Annual General Meeting 2014 28
Slide 30: Appendix
Deutsche Bank Appendix 29
Slide 31: Reconciliation of reported to adjusted IBIT (non-GAAP) – 1Q2014
Reconciliation of reported to adjusted IBIT (non-GAAP) – 1Q2014 1Q2014 CVA/DVA/ In EUR m IBIT reported CtA Litigation Other(1) IBIT adjusted FVA CB&S (2) 1,492 (111) 18 7 (12) 1,588 PBC 520 (107) (0) 0 (4) 631 GTB 367 (19) 2 0 (1) 385 DeAWM 169 (56) (13) 0 (4) 241 C&A (336) (5) (1) (94) (7) (228) Co
Slide 32: Reconciliation of reported to adjusted IBIT (non-GAAP) – 1Q2013
Reconciliation of reported to adjusted IBIT (non-GAAP) 1Q2013 1Q2013 CVA/DVA/ In EUR m IBIT reported CtA Litigation Other(1) IBIT adjusted FVA CB&S (2) 1,908 (102) (56) 137 1 1,929 PBC 483 (84) (0) 0 (5) 571 GTB 318 (7) (0) 0 (2) 327 DeAWM 219 (14) (14) 0 (1) 249 C&A (255) (0) (1) 0 (1) (252) Core B
Slide 33: Reconciliation of reported to adjusted cost base (non-GAAP)
Reconciliation of reported to adjusted cost base (non-GAAP) In EUR bn Non-Compensation Compensation and 6.9 7.2 7.6 6.6 6.5 benefits 3.1 3.7 4.3 4.9 3.1 3.5 3.2 2.9 2.7 3.3 1Q 2Q 3Q 4Q 1Q 2013 2014 Adj. cost base 6,034 5,910 5,600 5,604 5,992 (in EUR m) excludes: Cost-to-Achieve 224 357 242 509 310
Slide 34: Reconciliations of reported to adjusted financial measures (non-GAAP) FY 2013
Reconciliations of reported to adjusted financial measures (non-GAAP) FY 2013 Core CB&S GTB DeAWM PBC C&A NCOU Group In EUR m (if not stated otherwise) Bank Revenues (reported) 13,526 4,069 4,735 9,550 (929) 30,951 964 31,915 CVA / DVA / FVA1 203 0 0 0 276 479 171 650 Revenues (adjusted) 13,729 4,06
Slide 35: Reconciliations of reported to adjusted financial measures (non-GAAP) FY 2012
Reconciliations of reported to adjusted financial measures (non-GAAP) FY 2012 Core CB&S GTB DeAWM PBC C&A NCOU Group In EUR m (if not stated otherwise) Bank Revenues (reported) 15,073 4,200 4,472 9,540 (975) 32,309 1,427 33,736 CVA / DVA / FVA1 (350) 0 0 0 0 (350) 0 (350) Revenues (adjusted) 14,723
Slide 36: Reconciliations of reported to adjusted IBIT (non-GAAP)
Reconciliations of reported to adjusted IBIT (non-GAAP) FY 2004 through FY 2011 Reconciliation of Corebank IBIT1 2011 2010 2009 2008 2007 2006 2005 2004 In EUR m Corebank IBIT reported 7,478 7,524 4,746 -6,935 7,449 7,979 5,063 3,844 Cost-to-Achieve/Severance/Restructuring2 514 527 629 555 212 344 8
Slide 37: Cautionary statements
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 plans, estimates and pro