Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Investor Day (December 2009)
31 slides from Deutsche Bank's investor day presentation, Dec 15, 2009
Slide 1: Asset Management – Kevin Parker, Investor Day
Asset Management Kevin Parker Head of Asset Management Investor Day Frankfurt, 15 December 2009
Slide 2: Contents
Contents 1 Impact of the downturn 2 Our response: Re-positioning the platform 3 Well positioned to capture profitable growth Investor Relations 12/09 · 2
Slide 3: What we showed you at our last Investor Day
What we showed you at our last Investor Day Underlying revenues, FY2005 Invested assets, 31 Dec 2005 In EUR m Total(1): EUR 2,497 m In EUR bn Total: EUR 535 bn Retail 1,253 224 59 bps 81% Alternatives 775 57 144 bps Insurance 63 120 5 bps Institutional 222 135 17 bps bps Return on average assets (1)
Slide 4: Record IBIT growth through 2007
Record IBIT growth through 2007 Asset Management IBIT In EUR m Reported IBIT IBIT before specific items 28% CAGR* 765 646 474 306 2004 2005 2006 2007 * Reported IBIT: 28% CAGR; IBIT before specific items: 19% CAGR Note: IBIT before specific items excludes mark-downs, money market fund injections, in
Slide 5: The downturn
The downturn The financial crisis undermined the Asset Management story Performance of selected major indices Daily returns indexed to 16 July 2007 (% of change) 10% Trough 0% -10% -20% 20% -30% DJIA -40% DAX RE -50% 50% -60% -70% DJIA -53% DAX -54% RE -68% Jul-07 Dec-07 Jun-08 Dec-08 Jun-09 Dec-09
Slide 6: Impact on our assets under management
Impact on our assets under management AuM reduction driven by market downturn Asset Management AuM In EUR bn (14)% 555 463 476 233 Equity + Real Estate 154 159 (High margin business) (32)% Fixed Income 322 309 316 (High volume business) (2)% 31 Dec 07 31 Dec 08 30 Sep 09 Note: Figures may not add up
Slide 7: Impact on our revenues
Impact on our revenues Lower asset values result in lower fee income Asset Management revenues In EUR m 22% % Revenue drop 2,832 2,755 (58)% Management fees 1.0 bn 2,614 Performance fees 0.3 bn 2 314 2,314 Fees subtotal 1.2 1 2 bn Other 0.4 bn 1,686 Total EUR 1.6 bn 1,160 2004 2005 2006 2007 2008 9M
Slide 8: Impact on our IBIT
Impact on our IBIT One-off items caused drop in reported IBIT Asset Management reported IBIT In EUR m 765 646 474 306 (732) 2004 2005 2006 2007 2008 Note: 2004-2005 based on U.S. GAAP and on structure as of 2006, from 2006 onwards based on IFRS and on latest structure Investor Relations 12/09 · 8
Slide 9: Over EUR 1 bn in one-offs
Over EUR 1 bn in one-offs 2008 specific ifi items it Mark-downs, in EUR bn RREEF(1) (0.6) DWS Scudder(2) (0.4) European money market fund injections (0.2) Total (1.2) (1) Includes RREEF impairments, Maher/GOFIII operations and Hedge Fund seed impairments and severance (2) Includes DWS Scudder
Slide 10: IBIT before specific items has remained positive
IBIT before specific items has remained positive No further significant mark-downs expected Asset Management IBIT In EUR m Reported p IBIT IBIT before specific items 765 646 474 306 (189) (732) 2004 2005 2006 2007 2008 9M2009 Note: IBIT before specific items excludes RREEF impairments, mark-downs an
Slide 11: Contents
Contents 1 Impact of the downturn 2 Our response: Re-positioning the platform 3 Well positioned to capture profitable growth Investor Relations 12/09 · 11
Slide 12: Significant re-engineering and de-risking in 2008/2009
S Significant f re-engineering and de-risking in 2008/2009 / Asset Management platform re-engineering to restore operating leverage Significant restructuring of Asset Management business model – Globalization of DWS business and management structure – Repositioning of Asia/Pacific region around Ha
Slide 13: Platform significantly restructured
Platform significantly restructured Nearly 600 FTEs off platform since 4Q2008 Asset Management headcount development FTEs Asset Mgmt Group Technology & Operations AM GTO Headcount Development headcount development(1) (28)% (39%) 1,240 1,029 950 908 915 896 2004 2005 2006 2007 2008 Sep 2009 (33)% 4,5
Slide 14: Large savings from restructuring and cost containment
Large savings from restructuring and cost containment Cost management efforts since 2007 will result in over EUR 350 m of full year run rate savings in 2009 2009, with further full year run rate effects expected in 2010/11 Asset Management direct costs In EUR m 2007 2008 Jan – Sep 2009 annualised (3
Slide 15: Capital efficient platform has been significantly de-risked
Capital efficient platform has been significantly de-risked Significant reduction in real estate risk positions Asset Management risk positions In EUR m Hedge funds Mutual funds RREEF EUR 2.5 bn (78)% EUR 2 2.1 1 bn EUR 1.5 bn EUR 0.6 bn (1) 31 Dec 07 30 Jun 08 31 Dec 08 30 Sep p 09 (1) 60% of RREEF
Slide 16: Contents
Contents 1 Impact of the downturn 2 Our response: Re-positioning the platform 3 Well positioned to capture profitable growth Investor Relations 12/09 · 16
Slide 17: Investment performance remains outstanding
Investment performance remains outstanding DWS has a significantly greater percentage of 4- and 5-star rated funds in Europe than the industry average Morningstar Star distribution of DWS funds(1) vs. market(2) Europe – Equity funds(3) Europe – Fixed income funds(4) 37% DWS (1) 35% 33% Market (2) 31
Slide 18: Consultant ratings have improved sharply
Consultant ratings have improved sharply Client retention efforts have paid off in the US: 92% of current institutional clients gave a ‘loyal’ loyal or ‘favorable’ favorable rating 2005 2006 2007 2008 YTD 2009 Consultant firms rating products 0 5 12 28 41 # Products rated 0 6 12 38 49 Consultant win
Slide 19: Flow momentum has remained strong
Flow momentum has remained strong Asset Management adjusted continued business flows In EUR bn 41 37 25 23 15 (16) (43) 2004 2005 2006 2007 2008 9M2009(1) Since 2004(1) (1) Includes awarded and/or not yet funded assets of approximately EUR 20 bn Note: Net new money for continued operations; excludes
Slide 20: China Harvest Fund Management shows outstanding growth
Chi H China Harvestt F Fund dMManagementt shows h outstanding t t di growth th Mutual fund AuM growth, Harvest AuM development China vs Germany(2) In EUR bn In EUR bn China Germany 2003-2009(1) CAGR 61% 800 24 20 20 600 400 11 4 200 3 1 - 2003 2004 2005 2006 2007 2008 2009(1) ’08 ’10E ’12E ’14E ’16E
Slide 21: Megatrend growth of German individual retirement market presents opportunities
Megatrend growth of German individual retirement market presents opportunities DWS retirement solutions plan – AuM projection AuM, in EUR bn 250 Global DWS rollout plan 200 Projected growth of existing DWS business 150 100 50 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 2027 DWS has captu
Slide 22: What's left to do
What’s left to do Leverage market-leading position as a global insurance asset manager by creating strategic partnerships Focus institutional business on core investment competencies of cash and fixed income Re-focus RREEF around real estate core competency Continue driving efficiency and co
Slide 23: Key takeaways
Key takeaways No further significant write-downs expected Restructuring has brought costs in line with new business reality Since 2007 2007, EUR 350 m of run-rate run rate expense savings with further EUR 100 m anticipated Size and speed of our cost cutting efforts have significantly improve
Slide 24: 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 business divisions 10.0 Note: Figures do not add up due to rounding differences Investor Relations 12/09
Slide 25: Appendix
Appendix \\ \ tomo: | | re [| & A Passion to Perform. Deutsche Bank
Slide 26: Reconciliation of reported AWM IBIT
Reconciliation of reported AWM IBIT Income before income tax, in EUR m 2004 2005 2006 2007 2008 9M2009 AWM 414 597 894 913 (525) (123) AM 306 474 765 646 (732) (189) PWM 108 122 129 267 207 66 Note: Numbers for 2004 - 2005 based on U.S. GAAP and on structure as of 2006, from 2006 onwards based on IF
Slide 27: Reconciliation of underlying Asset Management revenues (page 3)
Reconciliation of underlying Asset Management revenues (page 3) FY2005, in EUR m Asset and Wealth Management (AWM) total net revenues 3,880 less Private less: Pri ate Wealth Management net revenues re en es (PWM) 1 266 1,266 Asset Management (AM) net revenues 2,614 Net gains from businesses sold (68
Slide 28: Reconciliation of reported IBIT and IBIT before specific items
Reconciliation of reported IBIT and IBIT before specific items (pages 4 and 10) Sep 2004 2005 2006 2007 2008 2009 Reported IBIT, IBIT in EUR bn 03 0.3 05 0.5 08 0.8 06 0.6 (0 7) (0.7) (0 2) (0.2) RREEF (Impairments/Write-downs/Maher& GOFIII/HF seed impairments) - - - (0.01) (0.6) (0.3) DWS (Intangib
Slide 29: Revenue adjustments through September 2009 (page 7)
Revenue adjustments through September 2009 (page 7) Sep YTD Revenues Reported p revenues,, in EUR bn 0.9 2009 specific items, in EUR bn: (0.3) - RREEF Impairments/Consolidations p ((0.3)) - European Money Market Fund Injections (0.02) Revenues before specific items, in EUR bn 1.2 Investor Relations
Slide 30: Supporting information regarding slide 17
Supporting information regarding slide 17 © 2009 Morningstar. All Rights Reserved. The information, data, analyses and opinions ("Information") contained herein (1) include Morningstar's confidential and proprietary information (2) may not be copied or redistributed, (3) do not constitute investment
Slide 31: Cautionary statements
Cautionary statements This p presentation contains forward-looking g statements. Forward-looking g 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 a