Deutsche Bank Ag · XETR:DBK
Deutsche Bank — UBS 12th Global Financial Services Conference (May 2010)
19 slides from Deutsche Bank's conference presentation, May 12, 2010
Slide 1: Deutsche Bank - Anshu Jain, UBS Global Financial Services Conference
Deutsche Bank Deutsche Bank Anshu Jain Head of Global Markets Member of the Management Board Investor Relations 05/10 UBS 12th Global Financial Services Conference UBS Conference presentation New York, 12 May 2010
Slide 2: Deutsche Bank Group: First quarter revenues and profits close to pre-crisis levels
Deutsche Bank Group: First quarter revenues and profits close l tto pre-crisis i i llevels l In EUR bn Net revenues Income before income taxes 9.6 9.0 3.2 8.0 2.8 2.6 7.2 6.6 6.2 1.8 1.8 1.6 5.0 4.6 0.2 (0.3) ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 1Q 1Q Note: 2003-2005 based
Slide 3: Deutsche Bank Group First Quarter 2010: Highlights
Deutsche Bank Group First Quarter 2010: Highlights 1Q2009 1Q2010 Income before income taxes (in EUR bn) 1.8 2.8 Profitability Net income (in EUR bn) 1.2 1.8 Pre-tax RoE (target definition)(1) 25% 30% 31 Dec 31 Mar 2009 2010 Ti 1 capital Tier it l ratio ti 12 6% 12.6% 11 2% 11.2% Capital Core Tier 1
Slide 4: Differentiated strategy less important than superior execution; track record speaks for itself
At a point where a differentiated strategy is less important th superior than i execution, ti our track t k record d speaksk for f itself it lf S&T revenues(1), in EUR bn DB’s DB s aggregate out out-performance performance (2002 2009)(2) EUR 21 bn (2002-2009) Other losses 1.8 Peer average Disclosed
Slide 5: The recalibration of Global Markets positions us well for current market conditions
The recalibration of Global Markets positions us well for currentt market k t conditions diti Recalibration Reduced capital in prop trading Proprietary trading Indicative Notional capital EPT: dedicated equity prop Intellectual capital SABA: dedicated credit prop Market access (1) (90)% (closed) Pea
Slide 6: Global Markets 1Q2010 vs. 1Q2007: A tale of two cities
Global Markets 1Q2010 vs. 1Q2007: A tale of two cities Similar top line revenue performance . . . p . . . using g significantly g y lower resources S&T revenues, in EUR m 1Q2010 vs. 1Q2007 1Q2010 vs. Peak(2) (26%) U.S. GAAP pro-forma (47%) assets n.a. (38%) Level 3 Assets 5 068 5,068 4,746 3% (35%)
Slide 7: Margin normalisation offset by lower losses and business expansion
As expected, margin normalisation has been offset by lower l losses and dbbusiness i expansion i 2010 expected development: as 1Q2010: accentuated due to presented at Investor Day exceptional conditions last year 2009 reported revenues 1Q2009 revenues (25)% to Normalised revenues (30)% Normalised re
Slide 8: An enviably diversified platform
An enviably diversified platform Gl b l M Global Markets k t revenues b by b business i area(1) Fixed Income Equities q 2009 2009 Comm- EM Dedicated odities 5% Prop 5% MM & FX 10% Prime 30% Brokerage 30% Cash Credit 40% 30% Rates Derivatives 30% 20% 1Q2010 1Q2010 Dedicated EM Prop Comm- 10% Prime <5
Slide 9: Our flow businesses, such as Foreign Exchange, are a real competitive advantage
Our flow businesses, such as Foreign Exchange, are a real competitive titi advantage d t Foreign exchange market conditions Spot spreads Extremely competitive May 06, 2010 environment, firms building Volatility out electronic offering Market Volume — 18% global market share — Voted #1 in FX for six
Slide 10: Recalibration of our credit business allows us to capitalise on strong demand
The recalibration of our credit business has allowed us to capitalise it li on strong t d demand d Structural shift to flow credit and Market trends and Global Markets recent demand for distressed positioning Breakdown of revenues High levels — Realignment of platform to more flow and Prop of client
Slide 11: Emerging Markets: Building on a leading position
Emerging Markets: Building on a leading position Near record revenues despite significant g normalisation Recognised g as a leader 1Q revenues Latin America LATAM — 89% growth in revenues over past 3 years CEEMA — Top-3 franchise 31 3.1x — Investing in trading hub in Sao Paulo CEEMA 2004 2005 2006 2
Slide 12: Equities: generating consistent results after successful recalibration but we need to grow
Equities: generating consistent results after successful recalibration lib ti b butt we clearly l l need d tto grow Delivering solid results Continuing to invest (1) S&T Equity revenues, in EUR m — Made key hires in electronic trading and sales — Investment in high and low touch technology has Avera
Slide 13: Our breadth of industry leading positions is unique amongst our peers
Our breadth of industry leading positions is unique amongst our peers; we are targeting t ti the th few f gaps that th t remain i Targeting Top 3 or Top 5 in global Leading g fixed income p player y equities Top 3 Top 3 Top 3 Top 3 Top 3 Top 3 Top 3 Top 3 Top 5 Target Top 3 Top 5 Top 5 Top 3 Top 5 T
Slide 14: Our commodities business is starting to reap the benefits of investment
Our commodities business is starting to reap the benefits of i investment t t Diversified business model Example: p successful g growth in metals Client revenues 1Q client revenues 2009 1Q2010 Metals 3x US PPower & GGas Emissions Exotics & Index Oil EU Power & Gas Other 2006 2007 2008 2009 2010 Chal
Slide 15: Deploying our intellectual capital to solve complex client needs
Deploying our intellectual capital to solve complex client needs d remains i a core competitive titi advantage d t An important p revenue driver Examples p Prop — Creation and market-making of Exchange 10-15% ~5% <5% ETFs Traded Funds aligned to investor interests Intellectual 30% 30% 25 35% Capital
Slide 16: The US remains a key strategic focus
The US remains a key strategic focus Contribution of Americas revenues Breadth of expertise p Americas as % of total GM revenues — No. 1 Global Prime Broker in North America (Global Custodian, Prime Brokerage Survey, July 2009) — No. 1 Provider of FX Services in North America (Euromoney, FX Poll, Ma
Slide 17: We have a dominant position in Asia and are building out across emerging Asia
We have a dominant position in Asia and are building out across emerging i A Asia i Emerging Asia will eventually overtake developed Asia Deutsche Bank Asia market share Banking assets 26.5% #1 #1 #3 #3 #4 ~45% 12.8% 12.5% #1 # 10.0% 9.5% 8.3% Emerging Asia 28% FX Gov IRD IG Credit G3D Equities Deve
Slide 18: 2011 potential: CB&S / Global Markets
2011 potential: CB&S / Global Markets I Income before b f income i taxes, t in i EUR b bn Risk Revenue development Cost development development — Margin / volume — De-risking losses normalisation ~2.4 ~(1.6) ~(0.9) — Legacy businesses — Lower market volatility — Mark-downs — Strategic hiring — Predo
Slide 19: Cautionary statements
Cautionary statements This presentation contains forward forward-looking looking statements. Forward Forward-looking 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 b
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