Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Unicredit German Investment Conference 2008
32 slides from Deutsche Bank's conference presentation, Sep 24, 2008
Slide 1: Deutsche Bank
Deutsche Bank Jürgen Fitschen Member of the Group Executive Committee Unicredit German Investment Conference Munich, 24 September 2008
Slide 2: Agenda
Agenda 1 Solid performance in challenging times 2 Focus Germany: Expanding our leading position 3 Strategy: Staying the course Investor Relations 09/08 · 2
Slide 3: Deutsche Bank remains a relative winner through the crisis
Deutsche Bank remains a relative winner through the crisis Aggregate IBIT, since July 2007 to date, reported, in EUR bn (2) 10.5 (1) 10.5 (2) 3.3 (1) 1.4 (2) 0.1 ((1)) (4 2) (4.2) (2) (18.5) (2) (18.7) (2) (19.8) (1) Diverging fiscal year (2) 3Q2008 results not yet published Note: For peers IBIT ref
Slide 4: 2Q2008: Pre-tax results by segment
2Q2008: Pre-tax results by segment Income before income taxes, in EUR m CB&S GTB CI 15% 18% 1,752 247 283 275 233 (311) 2Q2007 2Q2008 2Q2007 2Q2008 2Q2007 2Q2008 AWM PBC C&A (17)% 11% 292 297 328 242 (120) (176) 2Q2007 2Q2008 2Q2007 2Q2008 2Q2007 2Q2008 Investor Relations 09/08 · 4
Slide 5: CB&S revenue development and impact of mark-downs
CB&S revenue development and impact of mark-downs … Revenues, in EUR bn Loan products / Other Origination & Advisory (16)% S l &T Sales Trading di 5.3 44 4.4 2.2 0.4 (2 3) (2.3) 04 0.4 1.4 2Q2007 2Q2008 Total mark-downs 2Q2008 Reported ‘Pro-forma’ before (net of hedges) Reported mark-downs mark down
Slide 6: Nevertheless, a leading global investment bank
… nevertheless, nevertheless a leading global investment bank CB&S revenues 1H2008, in EUR bn Loan products 88 8.8 I Investment t t banking b ki 6.9 5.9 Sales & Trading 3.1 2.0 0.7 (3.9) (4.4) (11.8) Goldman JPMorgan Morgan DB Credit Lehman Merrill Citi UBS Sachs* Chase Stanley* Suisse Brothers* Lyn
Slide 7: Our 'stable' businesses proved their resilience
Our ‘stable’ 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 GSS 2007 2008 Note:
Slide 8: A strong and growing asset manager
A strong and growing asset manager Net new money Leading asset gatherer 1H2008, EUR bn PCAM invested assets per 30 June 2008, in EUR bn UBS (1) 7 22 MER 898 CS 11 MS (2) JPM GS (3) 4 Citi (2) LEH AM PWM PBC PCAM Asset Management Private Banking and others (1) T Total t lPPrivate i t Cli Clientt A As
Slide 9: Tier I ratio remains strong, and above target range
Tier I ratio remains strong, strong and above target range Basel I Basel II 9.2 9.3 9.3 8.7 8.8 9% 8.4 8.6 Target range 8% 329 308 311 303 305 285 Tier I ratio, in % RWA, RWA in EUR bn 31 Mar 30 Jun 30 Sep 31 Dec 31 Mar 30 Jun 2007 2008 Investor Relations 09/08 · 9
Slide 10: We strengthened our stable funding base
We strengthened our stable funding base Unsecured funding by source, in EUR bn 511 516 84 153 432 + EUR 74 bn 358 30 Jun 2007 30 June 2008 Capital markets Short-term wholesale funding Retail deposits Fiduciary, clearing & other deposits Investor Relations 09/08 · 10
Slide 11: A funding cost advantage for Deutsche Bank
A funding cost advantage for Deutsche Bank 5-year senior CDS, in bps 1 July y 2007 22 September p 2008 391 545 261 201 175 123 105 108 35 35 35 14 18 19 12 10 Credit JPMorgan Citi UBS Merrill Morgan Goldman Suisse Chase y Lynch Stanley y Sachs Source: Bloomberg Investor Relations 09/08 · 11
Slide 12: Agenda
Agenda 1 Solid performance in challenging times 2 Focus Germany: Expanding our leading position 3 Strategy: Staying the course Investor Relations 09/08 · 12
Slide 13: Leadership in Germany
Leadership in Germany … Investment Banking Mittelstand 2007 / 1H2008 Number of clients in (000), at year‘s end Share Rang 1,000 867 900 845 8 5 Fixed Income(1) 11.6% #2 2005 2006 2007 2010 GM Cash Equities q (2) 12.5% #2 g Target FX Western Europe(3) 18.5% #1 Market share(7) M&A(4) 52.6% #1 Client r
Slide 14: Even more strengthened by the co-operation with Postbank
… even more strengthened by the co-operation with Postbank As of 31 December 2007 PBC Clients & distribution Clients (m) 14.5 13.8 Branches 855 1 650 1,650 Mobile sales force ~ 4,300 ~ 3,200 FTE (000) 21.5 23.1 Brands Financials (EUR bn) Revenues 4.3 5.8 IBIT* 1.0 1.1 Customer loans 90 89 Customer d
Slide 15: Envisaged areas of co-operation between Postbank and PBC
Envisaged areas of co-operation between Postbank and PBC Rationale: Postbank is a market leader in prime segment for standard mortgages Mortgages / home DSL may become preferred provider in this segment for PBC finance Postbank (BHW) and PBC will explore cross-sell opportunities for their respec
Slide 16: Co-operation will reach a wide client base
Co-operation will reach a wide client base Clients* in Germany as at end 2007, in million •Savings Banks •~ 50 Co-operative Banks •30 30 •14.5 9 •9.7 •6.5 •6.1 •5.5 •4.0 •3.3 * Source: company information, FAZ Investor Relations 09/08 · 16
Slide 17: Strategically and financially attractive for shareholders
Strategically and financially attractive for shareholders Rapid profit growth and cost-efficiency Financial Strong brands investment into Postbank Loyal customers and employees Immediate P&L contribution Two strong platforms Co-operation Revenue / client driven agreement with Postbank
Slide 18: Agenda
Agenda 1 Solid performance in challenging times 2 Focus Germany: Expanding our leading position 3 Strategy: Staying the course Investor Relations 09/08 · 18
Slide 19: Five years of continued profit growth
Five years of continued profit growth In EUR bn Income before income taxes Net income 33% p p.a. 48% p.a. 8.7 6.5 8.3 6.1 61 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 09/08 · 19
Slide 20: Performance against key targets
Performance against key targets Reported R t d Target definition Pre-tax RoE Diluted EPS In % In EUR 33 29 54% p.a. 13 05 13.05 26 11.48 24 10.79 25% 16 6.95 10 4 53 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 Investor Re
Slide 21: Strong global footprint
Strong global footprint Geographical diversification Net revenues (1) Credit Exp.(2) FTE EUR 477 bn ~ 78.000 8% 19% EUR 31 bn 33% 28% 15% 20% 28% 32% EUR 10 bn 36% 4% 7% 20% 35% 29% 26% 69% 1995 2007 2007 2007 Germany Europe (ex. Germany), MENA Americas Asia / Pacific (1) 1995 based on IAS IAS, 2007
Slide 22: Attractive dividend policy
Attractive dividend policy Dividend per share, in EUR 3x 4.50 4 00 4.00 2.50 1.70 1.50 2003 2004 2005 2006 2007 Investor Relations 09/08 · 22
Slide 23: Leveraging our global platform for accelerated growth
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 'flow' products PBC: Ret
Slide 24: Longer-term trends continue to favour Deutsche Bank
… 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 players act locally Local p
Slide 25: Additional information
financial Additional information A Passion to Perform. Deutsche Bank
Slide 26: Reduction in exposures in key areas during the quarter
Reduction in exposures in key areas during the quarter In EUR bn Mark-downs 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 0.3 14.4 10.7
Slide 27: Reduction in total assets
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 2,150 1,991 (156) Positive 715 market values 1,677 from 640 1,562 derivatives 1,395 Tradingg 436 securities 415
Slide 28: Derivative market values and underlying credit risk
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 tti t d d traded public bli sector t credit dit risk i k derivatives Investor Relations 09/08 · 28
Slide 29: Postbank: Financial terms of transaction
Postbank: Financial terms of transaction Stake: 29.75% Acquisition against payment in cash Initial Price (per share): EUR 57.25 investment Stake accounted for at equity; includes full dividend Price (29.75%): EUR 2.79 bn right for 2008 Price basis (100%): EUR 99.3 3 bn Can be exercised after 1
Slide 30: Postbank: Non-financial terms of transaction
Postbank: Non-financial terms of transaction Deutsche D t h P Postt will ill nott sellll any partt off itits remaining i i stake t k (20 (20.25% 25% + 1 share) h ) ffor 24 months th Lock-up, after closing right of first refusal Thereafter, Deutsche Bank has a right of first refusal on all dispos
Slide 31: Postbank: Time horizon of agreements and duration of options
Postbank: Time horizon of agreements and duration of options Closing first tranche (29.75%) Y Year 1 Y Year 2 Y Year 3 Y Year 4 Y Year 5 for EUR 57.25 / share Lock-upp obligation g regarding sale of remaining Postbank shares (Dt. Post) Putt option P ti (Dt. (Dt Post) P t) EUR 42 42.80 80 / stake: 20
Slide 32: Cautionary statements
Cautionary statements This presentation contains forward-looking statements. Forward-looking statements are statements that are not historical f t they facts; th i l d statements include t t t about b t our beliefs b li f and d expectations t ti and d the th assumptions ti underlying d l i th them.
Deutsche Bank — Unicredit German Investment Conference 2008 on 6ix