Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Investor Day (September 2012)
30 slides from Deutsche Bank's investor day presentation, Sep 12, 2012
Slide 1: Financial foundation
Deutsche Bank Financial foundation Stefan Krause, Chief Financial Officer Investor Day, Frankfurt, 12 September 2012
Slide 2: Recap Day 1: Winning in a changed environment
Recap Day 1: Winning in a changed environment 2015+ Now – 2015 Ready and able to capitalize on future optionality Clear actions to position ourselves to win Long-term trends Future opportunity? Changed — A leading 1 Strengthen our unique global platform competitive European and home market positio
Slide 3: Agenda
Agenda 1 Financial overview 2015 2 Non-Core Operations unit 3 Capital toolbox 4 Operational Excellence Program 5 Strong liquidity and funding profile Deutsche Bank Stefan Krause financial transparency. 3 Investor Relations Investor Day, Frankfurt, 12 September 2012
Slide 4: Our historical performance in key financial metrics
Our historical performance in key financial metrics Key metrics, in % Adressing the challenges 15 — Returns have diminished post crisis in 8 6 line with industry, partly falling below Post-tax RoE(1) cost of capital DB pre-crisis DB 2011 Peer average Strengthen shareholder value creation 2011 75 7
Slide 5: 2015 aspiration and key assumptions
2015 aspiration and key assumptions 2015 aspiration Key macroeconomic assumptions Post-tax — Global GDP growth of >12% GDP RoE(1) 2-4% p.a.(3) Cost/income <65% FX — EUR/USD of ~1.30 ratio Core Tier 1 Equity — MSCI World index growth of >10% ratio(2) markets ~4%(4) p.a. — Continued low ECB and Fed Co
Slide 6: New Deutsche Bank – Overview of changes in segment composition
New Deutsche Bank – Overview of changes in segment composition CB&S GTB AWM PBC C&A(1) CI 1 Operating Businesses Non-Core CB&S GTB AWM PBC C&A(1) Operations 2 3 1 Reassignment of management responsibilities for non-core operations 2 Changes to the allocation of coverage costs to reflect new organiza
Slide 7: Focus on improving value creation in new Operating Businesses
Focus on improving value creation in new Operating Businesses(1) SPLIT OPERATING vs. NON-CORE INDICATIVE Post-tax RoE(2) Cost/income ratio >15% 72% 13% <65% 2011 2015 2011 2015 aspiration aspiration (1) Consolidation & Adjustments fully included (2) 2011 based on Basel 2, domestic statutory tax rate
Slide 8: Overview on aspirations for our Operating Businesses
Overview on aspirations for our Operating Businesses(1) SPLIT OPERATING vs. NON-CORE INDICATIVE CB&S GTB 2011 2015 aspiration 2011 2015 aspiration Post-tax RoE(2) 11%(3)/16% ~15% CIR 71% <65% IBIT, in EUR bn 1.0 ~2.4 RWA equivalent(4), 184(6)/244(5) <200(5) in EUR bn AWM PBC 2011 2015 aspiration 201
Slide 9: Agenda
Agenda 1 Financial overview 2015 2 Non-Core Operations unit 3 Capital toolbox 4 Operational Excellence Program 5 Strong liquidity and funding profile Deutsche Bank Stefan Krause financial transparency. 9 Investor Relations Investor Day, Frankfurt, 12 September 2012
Slide 10: Non-Core Operations unit – Rationale and governance
Non-Core Operations unit – Rationale and governance — Improve external transparency on non-core positions Rationale — Increase management focus on underlying operating businesses — Accelerate de-risking — New business segment of Deutsche Bank Group — One-time, irreversible assignment of assets to th
Slide 11: Non-Core Operations unit – Overview of selection criteria and scope
Non-Core Operations unit – Overview of selection criteria and scope — Non-core operations for Deutsche Bank going forward — Troubled assets from operating businesses Clear — Assets in run-off mode or where exit is already identified as the preferred route Selection Criteria — Suitable for separation
Slide 12: Significant planned RWA equivalent reduction in Non-Core Operations unit
Significant planned RWA equivalent reduction in Non-Core Operations unit SPLIT OPERATING vs. NON-CORE INDICATIVE Major Components Size of Non-Core Operations unit — Trading: securitization portfolio IFRS assets, in EUR bn — Assets in run-off: CB&S monoline, ~125 CB&S legally and regulatory challenge
Slide 13: Agenda
Agenda 1 Financial overview 2015 2 Non-Core Operations unit 3 Capital toolbox 4 Operational Excellence Program 5 Strong liquidity and funding profile Deutsche Bank Stefan Krause financial transparency. 13 Investor Relations Investor Day, Frankfurt, 12 September 2012
Slide 14: Current and targeted Core Tier 1 ratio well above regulatory minimum
Current and targeted Core Tier 1 ratio well above regulatory minimum Basel 2.5 Basel 3 >10% fully ~10.0% fully loaded 10.2% (phased-in) loaded 3 years of ≤ 2.5% Countercyclical buffer (1),(2) 9.5% retained earnings Deutsche ≥ 8% Bank (fully loaded) ≤ 2.5% G-SIB additional buffer requirement(1),(3) C
Slide 15: 1Q2013 Basel 3 simulation (fully loaded)
1Q2013 Basel 3 simulation(1) (fully loaded) In EUR bn Pro-forma RWA Pro-forma Core Tier 1 capital xx% Core Tier 1 ratio 109(2) (85) 10.2% 7.7% ≥ 8.0% (29)(4) 397 38 (6) 373 56(3) >32 (1) 31 30 Jun 2012 Basel 3 after Capital 31 Mar 2013 30 Jun Basel 3 Dividend 31 Mar Net Available 31 Mar Basel 2.5 ta
Slide 16: Capital toolbox - Planned usage focused on capital demand
Capital toolbox - Planned usage focused on capital demand Capital demand Capital supply Pro-forma Basel 3 RWA equivalent(1) relief, in EUR CET 1 capital formation, in EUR Identified Planned by potential 31 Mar 2013 Identified Available capital supply measures (not in Plan) potential Non-Core Operati
Slide 17: De-risking focus of the Non-Core Operations unit
De-risking focus of the Non-Core Operations unit SPLIT OPERATING vs. NON-CORE INDICATIVE Pro-forma Basel 3 RWA equivalent(1) of Non-Core Operations unit Planned Transferring reduction by segment June 2012 Action focus through to Mar 2013 31 Mar 2013 — Significant reduction of securitization position
Slide 18: Agenda
Agenda 1 Financial overview 2015 2 Non-Core Operations unit 3 Capital toolbox 4 Operational Excellence Program 5 Strong liquidity and funding profile Deutsche Bank Stefan Krause financial transparency. 18 Investor Relations Investor Day, Frankfurt, 12 September 2012
Slide 19: Aspiration to improve efficiency from historical levels
Aspiration to improve efficiency from historical levels Cost/income ratio aspiration in context Key levers 78% 75% Savings (aspiration by EUR 4.5 bn <65% 2015) Cumulative investments (CtA) ~EUR (4.0) bn (plan 2012- 2015) Investment (CtA) 0.9 efficiency(1) Pre-crisis 2011 2015 aspiration Note: Pre-cr
Slide 20: Savings program: Phasing and contribution by business
Savings program: Phasing and contribution by business Targeted savings per year Targeted savings by segment In EUR bn Run rate 2015, in EUR bn Infrastructure Infrastructure Businesses Businesses 4.5 4.5 0.4 0.8 1.7 1.1 1.7 0.7 0.5 0.3 0.2 0.4 0.9 0.2 2.8 0.8 2.8 0.4 0.8 1.1 <0.1 0.3 2012 2013 2014 2
Slide 21: Breakdown of cost program - related investments (CtA)
Breakdown of cost program - related investments (CtA) Targeted investments (CtA) per year Targeted investments (CtA) by segment In EUR bn Cumulative 2012 – 2015, in EUR bn Infrastructure Infrastructure Businesses Businesses ~4.0 ~4.0 0.1 0.1 0.5 1.0 ~1.8 0.9 ~1.8 0.6 0.4 0.2 0.4 0.7 0.3 1.0 ~2.2 ~2.
Slide 22: Agenda
Agenda 1 Financial overview 2015 2 Non-Core Operations unit 3 Capital toolbox 4 Operational Excellence Program 5 Strong liquidity and funding profile Deutsche Bank Stefan Krause financial transparency. 22 Investor Relations Investor Day, Frankfurt, 12 September 2012
Slide 23: Increased stability of funding mix ...
Increased stability of funding mix ... Development of funding sources Source as of percentage of total funding 31 Dec 2007(1) 30 Jun 2012(2) 39% Most stable funding sources, in EUR bn 672 361 24% 21% 18% 15% 12% 13% 13% 11% 10% 10% 7% 5% 2% Capital markets Retail Transaction Other Discretionary Secu
Slide 24: ... with strong growth in liquidity reserves
... with strong growth in liquidity reserves(1) Development through the crisis In EUR bn % of total assets adjusted 5% 12% 17% 16% 215% 219 205 150 65 31 Dec 2007 31 Dec 2010 31 Dec 2011 30 Jun 2012 (1) The bank's liquidity reserves include (a) available excess cash held primarily at central banks,
Slide 25: Cost-effective funding a competitive advantage
Cost-effective funding a competitive advantage 2012 Funding Plan complete; term liquidity surplus >EUR 30 bn Capital markets profile Liquidity profile As of 30 June 2012 As of 30 June 2012, cumulative in EUR bn 60 Historical Issuance (LHS) 200 Assets Equity *Future Maturities (LHS) 300 50 Liabilitie
Slide 26: Global/USD wholesale funding (UWSF) profile
Global/USD wholesale funding (UWSF) profile Short-term wholesale liabilities more than covered by liquidity reserves Global UWSF vs. global liquidity reserves In EUR bn UWSF(1) — Continued full access to the USD wholesale Liquidity Reserves(2) funding market 219 196 205 126 116 118 — Highly conserva
Slide 27: Key messages
Key messages Strong financial road map through 2015 Clear separation of operating businesses and non-core operations Core Tier 1 ratio target supported by diverse capital toolbox Launch of Operational Excellence Program Strong liquidity and funding profile Deutsche Bank Stefan Krause financial trans
Slide 28: Appendix
Deutsche Bank Appendix Investor Day, Frankfurt, 12 September 2012 28
Slide 29: Reconciliation of key financials shown in presentations
Reconciliation of key financials shown in presentations 2011 SPLIT OPERATING vs. NON-CORE INDICATIVE Re-segmentation Non-Core Operating (1) As reported Operations Other businesses Cost/income ratio 78% (6)ppt (1)ppt 71% RWA (in EUR bn) 229 (52) (3) 173 CB&S Memo: RWA equivalent (in EUR bn) (2) 257 (
Slide 30: 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