Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Non-Deal Roadshow (May 2008)
21 slides from Deutsche Bank's roadshow presentation, May 2008
Slide 1: Deutsche Bank – Dr. Josef Ackermann, May 2008
Deutsche Bank Dr. Josef Ackermann Chairman of the Management Board Edinburgh/Dublin/Lisbon/Madrid May 2008
Slide 2: Agenda
Agenda 1 Solid performance in challenging times 2 Strategy: Staying the course Investor Relations 05/08 · 2
Slide 3: In the first quarter 2008, the credit crisis continued …
In the first quarter 2008, the credit crisis continued … U.S. securitisation volumes shrink further Worsening conditions on money markets In USD bn In % CDO RMBS 6.0 309 319 USA* 250 250 5.5 200 200 5.0 4.5 150 150 169 Eurozone* 4.0 159 156 100 100 3.5 96 95 50 50 22 3.0 38 18 0 0 2.5 1Q 2Q 3Q 4Q 1Q
Slide 4: … leading to intense pressure on our business environment
… leading to intense pressure on our business environment Equity markets fall around the world Pressure on the financial sector Indexed 1 Jan 2007 = 100 Credit risk index*, indexed: 1 Apr 2007 130 2,000 1,800 1,600 120 1,400 DAX 1,200 110 1,000 800 iTraxx Financial Services 600 100 S&P 500 400 iTrax
Slide 5: Relatively robust profitability through the downturn …
Relatively robust profitability through the downturn … Aggregate IBIT, 3Q2007/4Q2007/1Q2008, reported, in EUR bn 8.7 (1) 8.1 2.6 (1) 2.2 (0.8) (1) (0.8) (14.6) (15.6) (2) (15.8) (1) Diverging fiscal year (2) reflects estimated loss in 1Q2008 (announced, 1 April 2008) Note: For peers IBIT reflects IB
Slide 6: … and the more so, when compared on a 'like-for-like' basis
… and the more so, when compared on a ‘like-for-like’ basis Aggregate IBIT, 3Q2007/4Q2007/1Q2008, adjusted for FV on own debt, in EUR bn 7.7 (1) 7.5 2.5 (1) 0.8 (1) (2.0) (2.3) (16.8) (17.3) (2) (19.9) Fair value gains on own debt (1) Diverging fiscal year (2) estimated loss and technical accounting
Slide 7: Deutsche Bank results: 1Q2008 Highlights
Deutsche Bank results: 1Q2008 Highlights Loss before income taxes of EUR 0.3 bn, after tax EUR 0.1 bn In CB&S loss before income taxes of EUR 1.6 bn, reflecting mark-downs of EUR 2.7 bn in Leveraged Finance, Commercial Real Estate, Residential Mortgage Backed Securities (Alt-A) Gain from application
Slide 8: Deutsche Bank results: 1Q2008 Summary
Deutsche Bank results: 1Q2008 Summary In EUR bn 1Q2008 1Q2008 vs. vs. 1Q2008 1Q2007 4Q2007 1Q2007 4Q2007 Net revenues 4.6 9.6 7.3 (52)% (37)% Provision for credit losses (0.1) (0.1) (0.3) 16 % (65)% Noninterest expenses (4.8) (6.3) (5.5) (25)% (14)% Income before income taxes (0.3) 3.2 1.4 Net incom
Slide 9: Pre-tax results by segment
Pre-tax results by segment Income before income taxes, in EUR m CB&S GTB CI 2,181 17% 123% 679 214 250 305 (1,604) 1Q2007 1Q2008 1Q2007 1Q2008 1Q2007 1Q2008 AWM PBC C&A 0% 4% 293 304 188 188 (17) (72) 1Q2007 1Q2008 1Q2007 1Q2008 1Q2007 1Q2008 Investor Relations 05/08 · 9
Slide 10: Inflows of net new money continued
Inflows of net new money continued PCAM invested assets, in EUR bn Net new money 952 4 896 4 (42) 2 (20) (5) EUR 11 bn 31 Dec Perfor- FX effect Other AM PWM PBC 31 Mar 2007 mance 2008 Note: Figures may not add up due to rounding differences Investor Relations 05/08 · 10
Slide 11: Tier I ratio is strong
Tier I ratio is strong Basel I Basel II 8.7 8.8 9.2 9.2 9% 8.4 8.6 Target range 8% 329 308 311 303 285 Tier I ratio, in % RWA, in EUR bn 31 Mar 30 Jun 30 Sep 31 Dec 31 Mar 2007 2008 Investor Relations 05/08 · 11
Slide 12: A funding cost advantage for Deutsche Bank
A funding cost advantage for Deutsche Bank 5-year senior CDS, in bps 1 July 2007 25 April 2008 171 153 130 95 101 70 71 75 59 35 35 35 37 14 18 19 12 10 DB Credit UBS JPMorgan Goldman Citi Morgan Merrill Lehman Suisse Chase Sachs Stanley Lynch Brothers Source: Bloomberg, DB Investor Relations 05/08
Slide 13: Agenda
Agenda 1 Solid performance in challenging times 2 Strategy: Staying the course Investor Relations 05/08 · 13
Slide 14: Five years of continued profit growth
Five years of continued profit growth In EUR bn Income before income taxes Net income 33% p.a. 48% p.a. 8.7 6.5 8.3 6.1 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 05/08 · 14
Slide 15: Performance against key targets
Performance against key targets Reported Target definition Pre-tax RoE Diluted EPS In % In EUR 33 29 54% p.a. 13.05 26 11.48 24 10.79 25% 16 6.95 10 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 Relations 05/08 · 1
Slide 16: Maintaining an attractive dividend policy
Maintaining an attractive dividend policy Dividend per share, in EUR 3x 4.50 4.00 2.50 1.70 1.50 2003 2004 2005 2006 2007 Recommended Investor Relations 05/08 · 16
Slide 17: Maintaining market leadership positions
Maintaining market leadership positions In EUR bn Investment Banking Asset Management Revenues CB&S(1), FY 2007 PCAM Invested Assets, as of 31 Dec 2007 GS(2) UBS 16.5 MER(3) JPM 952 CS CS LEH(2) MS MS(2) JPM(4) Citi GS(5) UBS Citi(4) MER LEH Sales & Trading Asset Management Origination & Advisory Pr
Slide 18: Strategy: We stay the course …
Strategy: We stay the course … Management Agenda Phase 1 Management Agenda Phase 2 2002 – 2003: 2004 – 2005: Refocusing the business 9 Growth and 25% RoE 9 Management Agenda Phase 3 2006 – 2008 Leveraging our global platform for accelerated growth Maintain our cost, risk capital and Continue to inve
Slide 19: … by leveraging our global platform for accelerated growth …
… by 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
Slide 20: … while 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 21: 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