Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Investor Presentation (March 2017)
25 slides from Deutsche Bank's investor presentation, Mar 6, 2017
Slide 1: Raising capital, strengthening our German home base and repositioning for growth
Deutsche Bank Raising capital, strengthening our German home base and repositioning for growth 6 March 2017
Slide 2: Positioning for the future
Positioning for the future A EUR ~8 bn capital increase to place our CET1 ratio comfortably above 13% Focus our business into three distinct units to target specific growth opportunities and align cost and operations A Reconfigure our Global Markets, Corporate Finance and Transaction Banking busines
Slide 3: Progress since October 2015
Progress since October 2015 Our objectives Delivery since October 2015 5% yoy reduction in Adjusted Costs in 2016(1) Retail transformation under way: staff reductions and branch network optimization in plan Simpler & Completed strategic disposals, including sale of Hua Xia stake, Abbey Life and US P
Slide 4: Proposed capital measures
Proposed capital measures — EUR ~8 bn estimated gross proceeds through a fully underwritten rights issue by issuing up to 687.5 m new shares — Subscription period expected to start end of March with closing of the transaction early April — Further potential for capital accretion of up to EUR ~2 bn(1
Slide 5: A stronger, safer bank with significant growth opportunities
A stronger, safer bank with significant growth opportunities 1 Capital levels 2 Leading 3 No.1 position 4 World-class 5 Smaller 6 Earnings mix above our European in German asset corporate more geared CET1 ratio bank with a home market management centre and towards target global CIB through business
Slide 6: Further measures to continue to deliver on our objectives
Further measures to continue to deliver on our objectives Targeting an Adjusted Costs of EUR ~22 bn by 2018 and EUR ~21 bn by 2021(1) Simpler & Additional businesses identified for disposal (EUR ~10 bn RWA/ EUR ~30 bn leverage exposure) more efficient Majority of disposals expected to take place ove
Slide 7: Our business model will be based on three divisions
Our business model will be based on three divisions Deutsche Bank A Corporate & B Private & C Deutsche Asset Investment Bank (CIB) Commercial Bank (PCB) Management (DeutscheAM) Revenues (2016, 16.8 10.3 2.5 EUR bn)(1) RWA (2016, 238 86 9 EUR bn)(2) Corporate-client led Formation of the largest Attra
Slide 8: Combining global markets, corporate finance and transaction banking into one corporate-led CIB
A Combining our global markets, corporate finance and transaction banking businesses into one corporate-led CIB Corporate-led Investment Bank Rationale for combining businesses 1 “Corporate” clients(1) Rebalancing to a Shift resource allocation to corporate-led businesses, targeting ~65% of CIB RWA
Slide 9: CIB will be weighted towards corporate business
A CIB will be weighted towards corporate business Current State (2016) New CIB structure (2016 pro-forma) Net revs. % of RWA Net revs. % of RWA (EUR bn)(1) (ex Op. risk)(2) (EUR bn) (ex Op. risk)(2) Aspiration(4) Origination & Advisory (M&A, 2.3 3% DCM, ECM) Transaction Banking 4.5 20% Origination &
Slide 10: Tangible growth opportunities continue to exist in CIB
A Tangible growth opportunities continue to exist in CIB Target: Regain #1 position in Europe with strong and profitable franchises in the US and APAC Origination and Broaden and deepen strategic relationships to specifically drive M&A and ECM Advisory Extend corporate DCM leadership into FIG(1) cap
Slide 11: Legacy assets to be run down in CIB
A Legacy assets to be run down in CIB RWA and leverage split of legacy asset portfolio Additional legacy assets identified as portfolios not Maturity RWA ex consistent with new corporate led CIB strategy Leverage profile operational exposure(3) EUR bn (years)(1) risk(3) move derivatives to a more ef
Slide 12: Consolidate position as leader in the strongest European economy
B Consolidate position as leader in the strongest European economy Facts on German market Key drivers for revised home market positioning Strongest economy in Europe Grow stable business in healthy home market, both in Number 1 export nation in Europe private and commercial banking Strong Population
Slide 13: Targeting clear segments in private and commercial market
B Targeting 3 clear segments in private and commercial market Current state: PCB Germany (FY2016) Priorities Re-align German structure by consolidating legal Revenues 3.4 3.5 0.4 entities, central functions and operations to cater (EUR bn) for cost and funding opportunities RWAs 42 18 2 (EUR bn) Mig
Slide 14: Phased plan for combination
B Phased plan for combination Phase 1 Phase 2 Phase 3 Validation Migration and combination Optimization Finalization of existing Preparation and execution of IT Streamlining of branch and transformation programs with cost migration to one joint platform agency networks reductions of EUR ~0.4 bn in 2
Slide 15: Minority IPO of Deutsche Asset Management to facilitate growth
C Minority IPO of Deutsche Asset Management to facilitate growth Minority IPO DB will maintain control with a majority stake IPO overview SE headquartered in Germany Limited separation issues, with preparations under way IPO planned to be completed within the next 24 months Expected to unlock intrin
Slide 16: Deutsche Asset Management is a leading diversified global asset manager
C Deutsche Asset Management is a leading diversified global asset manager Active Passive Alternatives EUR 529 bn of invested assets (Dec-16) EUR 98 bn of invested assets (Dec-16) EUR 79 bn of invested assets (Dec-16) A leading position in Germany #6 Exchange Traded Products Real estate: ~1,000 prope
Slide 17: A detailed plan to reduce costs by 2021
A detailed plan to reduce costs by 2021 2016 Adjusted Costs and cost targets (EUR bn) Severance and restructuring costs estimated to be EUR ~2 bn over the period 2017-2021 (~70% to be incurred over 29.4 next 2 years); all other investments included in Adjusted Costs Impairment of goodwill & other 1.
Slide 18: Significant revenue upside opportunities in the medium term
Significant revenue upside opportunities in the medium term Net revenues (EUR bn)(1) Potential medium term drivers(1) Challenging market backdrop Reduced client activity DB specific actions: DB specific issues driving loss Regain market share of market share from improved Low interest rate environme
Slide 19: A stronger, safer bank with significant growth opportunities
A stronger, safer bank with significant growth opportunities 1 Capital levels 2 Leading 3 No.1 position in 4 World-class 5 Smaller 6 Earnings mix above our European bank German home asset corporate more geared CET1 ratio with a global market through management centre and towards stable target CIB fr
Slide 20: Appendix
Appendix Deutsche Bank 19
Slide 21: Transaction timetable
Transaction timetable Action Date Expected publication of prospectus and publication of subscription offer 20 March Expected start of subscription period and rights trading (FSE and NYSE) 21 March Expected end of rights trading New York Stock Exchange 31 March Expected end of rights trading Frankfur
Slide 22: 2016 Financials – Old vs. New Structure
2016 Financials – Old vs. New Structure FY2016, in EUR m unless stated otherwise Old Structure Group GM CIB PWCC Postbank AM C&A NCOU Revenues (reported) 30,014 9,290 7,483 7,717 3,366 3,020 (480) (382) Revenues Adj. For disposals and (943) - - (779) - (537) (10) 382 NCOU exclusion New Structure Gro
Slide 23: Our new financial targets are consistent with a simpler, safer Deutsche Bank
Our new financial targets are consistent with a simpler, safer Deutsche Bank Adjusted Costs EUR ~22 bn by 2018 (including Postbank) EUR ~21 bn by 2021 Post-tax RoTE (normalized ~10% operating environment) Dividend per share Targeting competitive payout ratio for FY2018 and thereafter CET 1 ratio Com
Slide 24: 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
Slide 25: Legal Notices
Legal Notices European Economic Area This document does not constitute an offer to sell, or the solicitation of an offer to buy or subscribe for, any securities of Deutsche Bank AG. This document does not constitute a prospectus within the meaning of the EC Directive 2003/71/EC of the European Parli