Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Investor Day (June 2011)
33 slides from Deutsche Bank's investor day presentation, Jun 1, 2011
Slide 1: CIB Investor Workshop
Deutsche Bank CIB Investor Workshop Anshu Jain Member of the Management Board Head of the Corporate & Investment Bank Deutsche Bank Investor Relations Anshu Jain London, 1 June 2011 CIB Workshop, 1 June 2011 financial transparency.
Slide 2: Significant progress since Investor Day 2009 and strong positioning for the future
Significant progress since Investor Day 2009 and strong positioning i i i ffor the h ffuture — Markets: Recalibration of equities and credit, lower resource utilisation and closure of all dedicated proprietary trading Unquestionable b i business units it client market share Successful recalibration
Slide 3: Agenda
Agenda 1 CIB today: A powerful proposition 2 Monetising the franchise 3 Well positioned for the future Deutsche Bank CIB Workshop, 1 June 2011 financial transparency. 3 Investor Relations Anshu Jain
Slide 4: Recalibration: In Markets we significantly reduced resource consumption and still delivered strong results
Recalibration: In Markets we significantly reduced resource consumption ti and d still till d delivered li d strong t results lt Strong performance … ... using significantly fewer resources S&T revenues(5) in EUR bn Markets resources, current vs. peak levels(1) 5.1 4.7 4.6 (42)% Balance sheet (2) (3
Slide 5: Recalibration: In Corporate Finance we invested strategically to align resources with opportunities
Recalibration: In Corporate Finance we invested strategically i ll to align li resources with i h opportunities ii MD & D % of fee pool hires Rank and market share FY2010 2008-10 FY2008 1Q2011 Q Financial Financial Institutions 24% 17 #9 #3 24% 17 Institutions 3.6% 6.7% Industrries #5 #4 Industrials
Slide 6: Recalibration: In Global Transaction Banking we diversified revenues and offset the impact of low interest rates
Recalibration: In Global Transaction Banking we diversified revenues andd offset ff the h impact i off llow iinterest rates GTB revenues 2010 vs. 2007 Increased revenues outside home market In EUR m Revenue growth 2010 vs. vs 2007 ECB main refinancing rate 14% 14% Fed funds target rate 8% 9% Europe
Slide 7: A focus on costs remains a key priority
A focus on costs remains a key priority CB&S cost / income ratio Drivers of cost / headcount evolution 74% 69% <65% — Strategic investments across corporate finance, commodities and equities and related infrastructure spend — Integration: Rationalisation of corporate 2007 2010 Medium-term coverage,
Slide 8: We are generating substantially higher returns on our resources
We are generating substantially higher returns on our resources Return on VaR Return on RWA Cost / income ratio 1Q10-1Q11 average S&T 1Q10-1Q11 average CB&S 1Q10-1Q11 average CB&S revenues / VaR annualised IBIT / RWA annualised costs(1) / revenues 152x 3.3% 69% 120x 66% 2 6% 2.6% Peer average Peer a
Slide 9: Our mix of stable and cyclical businesses makes for a diversified and powerful proposition
Our mix of stable and cyclical businesses makes for a di diversified ifi d and d powerful f l proposition ii Pre-crisis Crisis and aftermath Products (2004 – 2007) (2008 – 2010) CIB revenues, in EUR bn — RMBS — Credit 18 5 18.5 18 4 18.4 19.3 — Money Markets 17 7 17.7 — Commodities 15.4 Cyclical — E
Slide 10: Strong market positioning across all products
Strong market positioning across all products … Fixed Income Equities / Advisory Top 3 Top 3 Top 3 Top 3 Top 5 Top 5 Top 3 Top 5 Top 5 Target Top 3 Top 5 Top 5 Top 3 Top 5 Top 3 Top 5 Top 5 #1 #1 #2 #1 #2 #1 #2 #4 5 #4-5 #3 C Current t #1 #7 #3 #1 #5 #1 #5 #4 #2 #3 #1 #1 #6 #1 #
Slide 11: ... with better momentum than peers
... with better momentum than peers DB’s CIB franchise broader than virtually all of our keyy competitors p … … with strong g momentum Number of markets where DB ranks top 3,(1) 2010 Change in number of top 3 positions, 2008 – 2010 35 9 Bank A 35 Bank H 5 Bank B 26 Bank B 2 Bank C 24 Bank C 0 Bank D
Slide 12: CIB is superbly placed to exploit EM growth opportunities
CIB is superbly placed to exploit EM growth opportunities 2011 GDP growth: 4.5%+ Central and Eastern Europe 3.5-4.5% ― Best FX House <3.5% ― Best Investment Bank in Poland O t off scope Out ― Best Risk Management House Ho se Asia ― #1 FX, Rates ― #4 Equities ― Best International Bond House ― Best St
Slide 13: Consistently delivering more stable revenues
Consistently delivering more stable revenues Lower volatility of results … … but better performance 2002-2010: S&T / Orig. & Adv. average annual 2002-2010: S&T / Orig. & Adv. total revenues(1), in revenues(1) vs. average volatility(2), in EUR bn EUR bn 12 DB aggregate out-performance (2002 – 2010):
Slide 14: Agenda
Agenda 1 CIB today: A powerful proposition 2 Monetising the franchise 3 Well positioned for the future Deutsche Bank CIB Workshop, 1 June 2011 financial transparency. 14 Investor Relations Anshu Jain
Slide 15: Further integration is driving increased co-operation across corporate coverage
Further integration is driving increased co-operation across corporate coverage Re-aligned corporate coverage Increased cross-sell Corporate Finance cross-sell revenues from Coverage Product Markets products +130% Markets yoy C-suite coverage Markets +20% +130% Treasurer yoy GTB level coverage CF 1Q
Slide 16: CMTS allows us to service clients better across risk management and treasury
CMTS allows us to service clients better across risk management andd treasury New Treasury service model Increased salesforce productivity CMTS 1Q revenues Capital Corporate Debt Capital Markets flow sales / head GTB sales / head Markets Banking Markets Sales Coverage 50% CMTS: Capital Markets & Tre
Slide 17: Good progress being made against integration IBIT target
Good progress being made against integration IBIT target 2011 Savings drivers target 1Q2011 % target ― Rationalisation of coverage nergies model, risk taking and support services Cost Streamline ― Standardised cost policies and 350(1) 65 20% C procedures across travel, travel syn procurement and inf
Slide 18: The ABN Amro acquisition will further enhance GTB's position in Europe
The ABN Amro acquisition will further enhance GTB’s position i i iin E Europe 4th largest commercial bank in NL Achievements Change off controll without Ch ih major j didisruptions i ffor clients or staff Treasury offering and other products (guarantees, MNC Hub international cash mgmt) g ) moved to
Slide 19: Our partnership with PCAM creates unique sales channels
Our partnership with PCAM creates unique sales channels PBC business potential PWM business potential CIB indicative revenues CIB pre-revenue pre revenue share indicative revenues PBC Postbank Corporate Finance Markets ex Postbank 35 35x 2x 2x 2010 2011E 2012E 2013E 2014E 2015E 2009 2010 2011E Deuts
Slide 20: Agenda
Agenda 1 CIB today: A powerful proposition 2 Monetising the franchise 3 Well positioned for the future Deutsche Bank CIB Workshop, 1 June 2011 financial transparency. 20 Investor Relations Anshu Jain
Slide 21: Regulatory change will be partially offset by management action; earnings quality will be higher
Regulatory change will be partially offset by management action; i earnings i quality li will ill b be hi higher h Illustrative CIB pre-tax RoE Proposed regulations, response and impact 2010 actual RoE 28% Basel 2 2.5 5/3 (13-14)% — Capital and RWA (trading book book, securitisation securitisation,
Slide 22: We remain focused on mitigating the impact of upcoming regulation
We remain focused on mitigating the impact of upcoming regulation l i CB&S Total Capital p Demand development p (1) Outlook In EUR bn — Solid governance in place for risk and Net impact: 118 capital optimisation — Stressed — Confident of achieving EUR 90 bn VaR mitigation target by 1 Jan 2013 — Incr
Slide 23: Ongoing portfolio optimisation uses RoE as well as other key metrics
Ongoing portfolio optimisation uses RoE as well as other k metrics key i Portfolio optimisation criteria Potential 2013 return on equity P t RoE Pre-tax R E(1) Return on equity CIB >20% GTB ~50% Ret rn on assets Return Commodities ~40% Revenue contribution / growth Equities / ~35% Earnings quality /
Slide 24: Our portfolio of businesses is well positioned for regulatory change
Our portfolio of businesses is well positioned for regulatory change h DB competitive positioning in Markets business Maintain Invest Underweight In-line Market-leading Optimise US Equities EU Equities Prime Finance Asia Equities Origination / Advisory Low w Flow Fl equity it derivatives
Slide 25: Our decade-long investment in our client franchise leaves us in a strong position
Our decade-long investment in our client franchise leaves us in i a strong position i i with i h iinvestors and d corporates Higher client revenues Deeper client relationships Client revenues Growth in # of clients 2007-2010 Size of relationship in EUR m 10% >50 >100% 2007 2009 2010 Growth in revenu
Slide 26: CIB: An attractive value proposition
CIB: An attractive value proposition Pre- Post- CIB crisis crisis Change Illustrative Revenues((1)) (in EUR bn) 18-19 18 19 >21 +15% IBIT(2) (in EUR bn) 5-6 7.4 +35% Balance sheet(3) (in EUR bn) >1,200 ~800-900 -30% V l att Ri Value Risk k (i (in EUR mn)) >140 140 ~80 80 -40% 40% Stress loss(4) (in
Slide 27: Additional information
Deutsche Bank Additional information
Slide 28: Market share positioning across regions and products
Market share positioning across regions and products Markets Corporate Finance Fixed US S Eur Asia G Global Americas EMEA APACxJ C G Global Income 2009 2010 2009 2010 2009 2010 2009 2010 2009 1Q11 2009 1Q11 2009 1Q11 2009 1Q11 FI #4 #1 #2 #2 #2 #1 #3 #1 M&A #10 #8 #6 #1 #7 #3 #9 #4 Rates #3 #1 #3 #2
Slide 29: CB&S revenue breakdown
CB&S revenue breakdown FY2010 (1) Other Other(2) AsiaPac Corp Finance Insurers Others1 Hedge Rates / RMBS / Commodities funds CF Trade Finance US MM / FX Banks Equities Money managers Europe Corporates Credit / EM Revenues by region Revenues by product Revenues by client type (1) Other includes Loan
Slide 30: Technology leadership in flow products and further opportunities for streamlining
Technology leadership in flow products and further opportunities i i ffor streamlining li i Best in class FX p platform Significant g streamlining gppotential Revenues, index 2006 = 100 #1 Overall Market Share (7th Market DB year running) Hedge Financial 227 Corporate fund institutions 177 172 167 1
Slide 31: Infrastructure projects supporting growth initiatives are progressing well
Infrastructure projects supporting growth initiatives are progressing i wellll Initiative Description Targets — Integrated, standardised, official view of risk at the desk — Front Office risk engines reduced from 55 Risk architecture and group level across all products with an enhanced in 2008 to 4
Slide 32: Products considered for Top 3 analysis on slide 11
Products considered for Top 3 analysis on slide 11 Europe US Asia (ex. (ex Japan) Japan 1. Government Bonds 18. US Treasury Securities 37. Government Bonds 53. Government Bonds 2. Agency Securities 19. Interest Rate Derivatives 38. Agency Securities 54. IG Credit 3. Interest Rate Derivatives 20. IG
Slide 33: 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