Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Investor Day (December 2009)
35 slides from Deutsche Bank's investor day presentation, Dec 15, 2009
Slide 1: Global Banking, Michael Cohrs
Global Banking Michael Cohrs Head of Global Banking Investor Day Frankfurt, 15 December 2009
Slide 2: Global Banking, Global Transaction Banking, Corporate Finance
1 Global Banking 2 Global Transaction Banking 3 Corporate Finance Investor Relations 12/09 · 2
Slide 3: Global Banking strategic priorities
Global Banking strategic priorities Phase ase 4 Global G oba Bankings’ a gs act actions o s Global Transaction Banking Increase CIB IBIT of EUR 1.3 bn by 2011 profitability with Build scale renewed balance sheet and risk discipline Further investments in emerging markets to expand coverage and
Slide 4: Corporate and Investment Banking covers a sizeable and growing fee pool
Corporate and Investment Banking covers a sizeable and growing fee pool Corporate and Investment Banking fee pool In EUR bn 507 459 423 403 368 Transaction 281 Banking(1) Global 250 CAGR C G = 7.8%8% Bankingg 227 CAGR = 8.6% 222 208 Corporate 51 Finance 43 49 33 CAGR = 13.2% 31 Global Markets(2) 148
Slide 5: Global Banking within the context of Corporate and Investment Banking
Global Banking within the context of Corporate and Investment Banking Corporate and Investment Bank revenues At period end, in EUR m Components of Global Banking 2006 2007 2008 9M2009 Sales and Trading (equity) 4,039 4,613 (630) 2,096 Sales and Trading (debt and other products) 9,016 8,407 124 8,527
Slide 6: Global Banking delivers the bank's products in an integrated fashion
Global Banking delivers the bank’s products in an integrated fashion Deutsche Bank’s Global Banking Global Banking products coverage focus clients Corporate Finance Coverage Client team contact Asset Finance & Equity Capital Leasing Markets Commercial Real Mergers & Industry and Corporates Estate Ac
Slide 7: Significant cross-sell
Significant cross-sell Revenues e e ues generated ge e ated by Global G oba Banking a g boo booked ed in other d s o s(1) ot e divisions In EUR bn 10 1.0 10 1.0 0.8 0.6 0.2 2005 2006 2007 2008 2009e (1) Cross-sell includes revenues booked in Global Markets (excl. ECM), PBC and PWM where a GB banker
Slide 8: Global Transaction Banking
1 Global Banking 2 Global Transaction Banking 3 Corporate Finance Investor Relations 12/09 · 8
Slide 9: GTB is now one of the main pillars of Deutsche Bank
GTB is now one of the main pillars of Deutsche Bank Increased c eased profitability p o tab ty Return etu on qu ty(1) o Equity IBIT, in EUR m In % 102 CIR, in % 1,106 86 66 86 945 33 18 79 705 2004 2005 2006 2007 2008 70 Return on RWA(2) 433 In % 72 7.2 63 254 60 4.9 5.1 3.5 2.3 2004 2005 2006 2007
Slide 10: GTB has diversified its business by pursuing global opportunities
GTB has diversified its business by pursuing global opportunities, particularly with its strong German client base Net revenues by region 16% 21% Asia/Pac 8% Europe, excl. Germany 13% 22% Americas 20% Germany 59% 41% 2003 2008 Note: Numbers for 2003 based on U.S. GAAP, 2008 based on IFRS, excl. disc
Slide 11: GTB provides liquidity to the Group
GTB provides liquidity to the Group As of September 2009, in EUR bn GTB balance sheet (external assets and liabilities only) 99 Non-interest bearing deposits Cash +61 provided to the Group Interest bearing 37 deposits Loans Stranded liquidity(1) Other(2) Oth (3) Other Assets Liabilities ( ) Liquidit
Slide 12: The macroeconomic environment has impacted GTB's performance in 2009
The macroeconomic environment has impacted GTB’s performance in 2009 Factors impacting Revenue Product 2008/2009 performance impact Income before income taxes In EUR m Higher margins, risk aversion and Trade increased market share more than 815 Finance offsetting decreasing global trade volume 596
Slide 13: GTB has mitigated some of the adverse impacts ...
GTB has mitigated some of the adverse impacts ... Income before income taxes, in EUR m 815 596 Market conditions Miti Mitigants t I Investments t t 9M2008 Lower Market Addit. Risk Business Higher 9M2009 interest deterio- provisions based growth costs/ rates ration g(1) funding invest- ments (1) Risk
Slide 14: ... and grown market share
… and grown market share Example: Trade Finance and Cash Management Corporates Trade Finance(1) Cash Management Corporates(2) Market share, in % Pipeline volume Germany Pipeline deals 25 6 25.6 Global 24.5 23.9 23.4 23.5 78% 2.1 2.2 2.3 20 2.0 20 2.0 27% 3Q08 4Q08 1Q09 2Q09 3Q09 9M2008 9M2009 (1) So
Slide 15: Looking forward, there will be significant growth in the GTB fee pool
Looking forward, there will be significant growth in the GTB fee pool Global Transaction Banking fee pool(1) In EUR bn 281 Trade Finance 250 Cash Management 222 227 Financial Institutions 208 Trust and Security Services Cash Management Corporates 2008 2009e 2010e 2011e 2012e (1) Fee pool includes ce
Slide 16: GTB is positioned to grow ...
GTB is positioned to grow … Income before income taxes, in EUR m 9M 1,106 Phase 4 upside Recovery of key 945 business drivers Market share gains 705 Investments in 596 new products / markets 433 ABN acquisition 2009 Headwinds Low interest rates 254 Depressed equity markets Slowdown in
Slide 17: ... by capitalising on recent investments ...
… by capitalising on recent investments … Completed alignment for EUR and USD high value payment processing System Customer front end investments, e.g. GTB portal enhancements Investments I t t in i client li t on-boarding b di iinfrastructure f t t HedgeWorks – upgrade platform and roll out
Slide 18: ... by positioning to benefit from interest rate normalisation ...
… by positioning to benefit from interest rate normalisation … Interest rates In % 6 U.S. interest rate 4 2 EUR interest rate 0 2005 2006 2007 2008 2009e 2010e 2011e 2012e Net interest income In EUR m 1 800 1,800 1,200 600 0 2005 2006 2007 2008 2009e 2010e 2011e 2012e Build up and efficiency improve
Slide 19: ... and by focusing on high growth, fee and high margin products
… and by focusing on high growth, fee and high margin products Opportunity Product Rationale / measures Innovative Market potential 3 to 4x larger than traditional documentary Supply Chain business financing Finance solutions Focus on Investment Grade clients (~ 90% of limits) Structured Lack
Slide 20: GTB growth based on mature markets and regional expansion
GTB growth will be based on building strength in mature markets and regional expansion Goal Region Rationale / measures Maintain leading position in Germany Build-out large- / mid-cap client base in Western Mature atu e L Leverage DB’ DB’s E Europe markets brand name and Increase GTB sales i
Slide 21: Acquisition of ABN Amro commercial banking assets would strengthen GTB's European footprint
The acquisition of a portion of ABN Amro’s commercial banking assets would strengthen GTB’s footprint in Europe Target description Strong market position 15 ABN commercial banking units (2 CCUs(1) Commercial banking market share(3) and 13 AKs(2)) evenly spread throughout The 29% Netherlands plus R
Slide 22: GTB priorities
GTB priorities 1 IBIT of EUR 1.3 bn by 2011 2 Build scale Further investments in emerging markets to expand coverage and 2 secure new mandates 3 I Increase share h off fee f and d high hi h margin i products d t 4 Capitalise on normalisation of interest rate environment Integration of acquisitions i
Slide 23: Corporate Finance
1 Global Banking 2 Global Transaction Banking 3 Corporate Finance Investor Relations 12/09 · 23
Slide 24: Fee pool estimates indicate quick rebound in Corporate Finance
Fee pool estimates indicate quick rebound in Corporate Finance Corporate Finance global fee pool Key market trends In EUR bn Forecasts High recapitalization activity in Financial 54 Institutions Natural Institutions, 52 51 51 49 Resources, High Grade Industrials and Real 42 43 Estate 41 41 Leverag
Slide 25: Deutsche Bank is less than 1% below the top 5 target
Deutsche Bank is less than 1% below the top 5 target Corporate Finance global fee league table 2007 2008 2009 YTD Market Market Market Manager name share Manager name share Manager name share 1 JPMorgan 8.7% 1 JPMorgan 8.7% 1 JPMorgan 10.3% 2 Bank of America 8.2% 2 Bank of America 8.4% 2 Bank of Ame
Slide 26: Deutsche Bank has grown headcount during the crisis
Deutsche Bank has grown headcount during the crisis Challenges Action and result Total FTE vs. competitors(1) 89% 76% 80% 77% 80% Increased our headcount vs. competitors as Deutsche Bank was market contracted significantly below 2005 2006 2007 2008 1H09 1 scale on total headcount and MD MDs vs. co
Slide 27: Investments in the Americas and Asia Pacific have yielded positive results
Investments in the Americas and Asia Pacific have yielded positive results … Corporate Finance headcount as a % of average competitor(1) Americas Europe Asia/Pac excl. Japan 106% 100% 95% 84% 71% 74% 2007 1H2009 2007 1H2009 2007 1H2009 Fee league table rank and market share Americas Europe Asia/Pac
Slide 28: Solid foundation for growth in the Americas
… there is a solid foundation for growth in the Americas … Americas e cas league eague table tab e DB ta target get market a et sshare ae DB has gained share in total ... ... and will focus on gaining traction in NRG and FIG to achieve 5.8% share (rank 6) 5.8% 2008 2009 YTD TMT Market Market Consume
Slide 29: Momentum in Asia Pacific has already yielded positive results
… and momentum in Asia Pacific has already yielded positive results Asia s a / Pac ac (excl. (e c Japa Japan)) league eague tab table e DB market a et sshare ae DB has made consistent leaps forward in ... matched with market share growth league table rank... 7.3% … 2008 2009 YTD H lth Healthcare 6.6
Slide 30: Investments in key industries and countries
Investments in key industries and countries FTE hires League table of which Percentage position MDs and Key fee pools of fee pool(1) YTD 2009(1) 2008-2009(2) Directors Financial Institutions 23% 11 40 21 dustry Natural Resources 23% 6 32 13 Ind Industrials 16% 7 22 7 UK 25% 5 109 35 untry France 12%
Slide 31: Leveraged Finance has been recalibrated
Leveraged Finance has been recalibrated, tightening risk and underwriting parameters … Competitor exposures and mark-downs Lessons learned In EUR bn Pipeline and single-name concentrations were Total exposure Mark-downs too large 2007 LTD(1) Lag time between commitment and funding / Citi 29.3 4.
Slide 32: Commercial Real Estate has placed strict limits on pipeline and concentration risk
… Commercial Real Estate has also placed strict limits on pipeline and concentration risk Competitor exposures and mark-downs Lessons learned In EUR bn Single name concentration risk too high Total exposure Mark-downs Strayed from core real estate competencies 2007 LTD(1) Poor decision made in
Slide 33: Corporate Finance priorities
Corporate Finance priorities 1 Top 5 rank by global fee league table 2 Monetise investments in headcount 3 Investments focused on specific industry groups and regions 4 C it li on momentum Capitalise t in i Americas A i and d Asia A i Pacific P ifi 5 Establish a clear leadership position in Europe 6
Slide 34: Phase 4: IBIT potential
Phase 4: IBIT potential In EUR bn Phase 4 potential 2011 Corporate Banking & Securities 63 6.3 Global Transaction Banking 1.3 Asset and Wealth Management 1.0 Private & Business Clients 1.5 Total 10.0 Note: Figures do not add up due to rounding differences Investor Relations 12/09 · 34
Slide 35: 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