Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Investor Day (September 2012)
22 slides from Deutsche Bank's investor day presentation, Sep 12, 2012
Slide 1: Operational Excellence Program
17:00 CET– Deutsche Bank 06.09.2012 Operational Excellence Program Henry Ritchotte, Chief Operating Officer Investor Day, Frankfurt, 12 September 2012
Slide 2: The new COO organization incorporates strategy to align resource allocation
The new COO organization incorporates strategy in order to align resource allocation across business and infrastructure New COO structure Chief Operating Officer New COO functions Corporate Global Global Global GTO Security & Group Business Logistics GTO Technology Regional Business Strategy Service
Slide 3: Agenda
Agenda 1 External dynamics shaping our operating model 2 Operational Excellence Program 3 Roadmap 2012 – 2015 Deutsche Bank Henry Ritchotte financial transparency. 3 Investor Relations Investor Day, Frankfurt, 12 September 2012
Slide 4: External dynamics drive a fundamental need for re-engineering
External dynamics drive a fundamental need for re-engineering External dynamics Change in environment Historical state Changing — Integration and connectivity — High growth and margin environment client behavior — Transparency — Customization for clients — Entrepreneurship and dedicated structures —
Slide 5: The "New Normal" implies significant shifts across key operating model dimensions
The “New Normal” implies significant shifts across key operating model dimensions Required shift in operating model — Lean and consolidated Organizational design — Sharing across the bank — Central governance Governance — Control framework standards — Clear accountability Performance management — Pa
Slide 6: An operating model that balances quality, flexibility, control and cost
We will address these shifts through an operating model that balances quality, flexibility, control and cost Quality Flexibility Improving services to Strategic flexibility through clients and business reduced fixed cost base Customization rate <20% >40% of cost base flexible Control Cost Robust and
Slide 7: Roadmap 2012 – 2015
Agenda 1 External dynamics shaping our operating model 2 Operational Excellence Program 3 Roadmap 2012 – 2015 Deutsche Bank Henry Ritchotte financial transparency. 7 Investor Relations Investor Day, Frankfurt, 12 September 2012
Slide 8: We plan to invest to achieve lasting annual savings
We plan to invest to achieve lasting annual savings Business Infrastructure DB Group CB&S Strategic foundation COO(1) for sustainable growth GTB Fundamental cost structure AWM transformation Corporate Center(2) Ensures meeting 2015 PBC profitability aspirations Annual run rate savings aspiration EUR
Slide 9: We plan to realize the full savings in 2015
We plan to realize the full savings in 2015 Savings and investment (CtA) ramp-up until 2015 In EUR bn Infrastructure savings 4.5(3) Business savings(1) Investment (CtA)(2) 1,7 Annual run 2.9 rate savings 0,9 aspiration 1.6 2,8 4.5 0,4 2,0 0.4 1,2 <0.1 0,3 (0.6) Cumulative (0.2) (1.7) (1.5) planned o
Slide 10: Portfolio decisions and front end re-engineering drive direct cost reductions
Our portfolio decisions and front end re-engineering drive direct cost reductions 2015 run rate savings aspiration Optimization approach In EUR bn — Focus on right-sizing to market conditions CB&S Infrastructure cost 1.1 0,8 savings allocation — Continued front-to-back process optimization — Stable
Slide 11: We will re-engineer our Infrastructure functions as well
We will re-engineer our Infrastructure functions as well 2015 run rate savings aspiration Optimization approach In EUR bn — Application rationalization and renewal Technology 0,7 — Standardization and automation — Footprint optimization — Front-to-back process automation Operations 0,4 — Application
Slide 12: Five structural optimization levers across the entire bank
The Operational Excellence Program employs five structural optimization levers across the entire bank Structural levers Savings aspiration Run rate 2015 1 — Industrialization of development processes IT platform renewal EUR 0.8 bn — Automated, self service application support 2 Organizational — Func
Slide 13: IT platform renewal program drives business and process transformation
1 Our IT platform renewal program drives business and process transformation Major IT platforms Optimization approach CB&S GTB AWM PBC — Re-platform critical core applications to adopt standard golden source data — Build out enterprise services – risk, electronic dbCoral distribution and data wareho
Slide 14: Organizational streamlining through centralization creates maximum synergies
2 Organizational streamlining through centralization creates maximum synergies Shared services approach Optimization approach Current CB&S GTB AWM PBC — Automate manual model processes Vertically Functional embedded — Consolidate control activity services activities at the center consolidation Share
Slide 15: We will optimize non compensation cost spend aggressively
3 We will optimize non compensation cost spend aggressively Share of non compensation cost Optimization approach In % — Use single sourcing for all spend — IT hardware, software Centralized — Consolidate >80% of and services procurement spend with 500 vendors ~55% — Professional services — Reduce ve
Slide 16: Front-to-back productivity with emphasis on demand simplification
4 We will enable front-to-back productivity, with a particular emphasis on demand simplification Process landscape Optimization approach Current model — Reduce cost per trade Many by 20% in CB&S Automation custom — Increase straight processes through processing Still often manual and not — Systemati
Slide 17: We will rationalize our real estate footprint
5 We will rationalize our real estate footprint Current location footprint Optimization approach Share of Infrastructure — Average share of headcount per location Consolidation Infrastructure staff in prime Infrastructure and and shift to locations 40% lower cost hubs lower cost areas — Minimum serv
Slide 18: Roadmap 2012 – 2015
Agenda 1 External dynamics shaping our operating model 2 Operational Excellence Program 3 Roadmap 2012 – 2015 Deutsche Bank Henry Ritchotte financial transparency. 18 Investor Relations Investor Day, Frankfurt, 12 September 2012
Slide 19: Execution will unfold in stages
Execution will unfold in stages, moving from organizational efficiency to more lead time intensive levers Platform renewals Front-to-back and simplification of Organizational re-engineering and operating environment streamlining footprint optimization and sourcing excellence — Renewed platforms for
Slide 20: Dedicated program architecture
Dedicated program architecture Project Governance Operational Excellence Programme Control Steering Committee / functions Group Operating Committee Programme Management Franz Herrlein Target Operating Model CFO Infrastructure Jan Wohlschiess Lead Operational Excellence Group Strategy (AfK) Program O
Slide 21: Operational Excellence is a cornerstone of DB's Vision
Operational Excellence is a cornerstone of DB’s Vision Operational Excellence Full re-engineering of operating model to accommodate changes in environment, regulation and client behavior Strategic investments in our globally integrated platforms Optimal balance of quality, flexibility, control and c
Slide 22: 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