Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Non-Deal Roadshow (February 2007)
44 slides from Deutsche Bank's roadshow presentation, Feb 9, 2007
Slide 1: Deutsche Bank 2006 Results
Deutsche Bank 2006 Results Anthony di Iorio Chief Financial Officer London, 8 – 9 February 2007
Slide 2: Agenda
financial transparency. Agenda 1 Management Agenda Phase 3 2 Group results 3 Segment results 4 Risk and capital management Investor Relations 02/07 · 2
Slide 3: The current phase of our strategy: Management Agenda Phase 3
financial transparency. The current phase of our strategy Management Agenda Phase 3 2006 – 2008: Leveraging our global platform for accelerated growth Maintain our cost, risk, capital and Continue to invest in organic growth and regulatory discipline ‘bolt-on’ acquisitions Further grow our ‘stable’
Slide 4: Maintain our cost, risk, capital and regulatory discipline
financial transparency. Maintain our cost, risk, capital and regulatory discipline Cost Risk Capital Underlying CIR, in % Problem loan ratio(1), in % Tier 1 ratio(2), in % 6.3 10.0 85 9.6 4.5 8.6 8.7 8.9 79 80 3.5 74 2.5 71 1.9 '02 '03 '04 '05 '06 '02 '03 '04 '05 '06 '02 '03 '04 '05 '06 (1) Problem
Slide 5: Continue to invest in organic growth …
financial transparency. Continue to invest in organic growth … Risk-weighted assets Growth in key businesses At year end, in EUR bn FTE, change 31 Dec 2006 vs. 31 Dec 2005(2) Underlying return on RWA(1) (in %) 274 CB&S 890 251 237 GTB 251 216 217 2.9 2.5 1.8 AW M 531 1.6 0.5 PBC 1,525 2002 2003 2004
Slide 6: … and 'bolt-on' acquisitions
financial transparency. … and ‘bolt-on’ acquisitions Transactions announced during 2006 Closing dates Status Norisbank 2 November 2006 9 Tilney 14 December 2006 9 Berliner Bank 1 January 2007 9 MortgageIT 2 January 2007 9 Investor Relations 02/07 · 6
Slide 7: Further grow our 'stable' businesses
financial transparency. Further grow our ‘stable’ businesses Underlying pre-tax profit GTB, AWM and PBC, in EUR bn GTB AWM 2x PBC 2.7 2.3 1.7 1.3 2003 2004 2005 2006 Note: 2003 results have not been adjusted to new group structure Investor Relations 02/07 · 7
Slide 8: Build on our competitive edge in investment banking
financial transparency. Build on our competitive edge in investment banking Underlying pre-tax profit CB&S, in EUR bn 2x 5.2 4.2 2.7 2.8 2003 2004 2005 2006 Note: 2003 results have not been adjusted to new group structure Investor Relations 02/07 · 8
Slide 9: Vision 2008: A good start
financial transparency. Vision 2008: A good start Underlying pre-tax profit, in EUR bn 2005 2006 Vision 2008 Corporate Banking & Securities 4.2 5.2 5.3 Global Transaction Banking 0.5 0.7 1.0 Asset and Wealth Management 0.7 0.9 1.3 Private & Business Clients 1.0 1.1 1.3 Corporate Investments 0.0 (0.0
Slide 10: Agenda
financial transparency. Agenda 1 Management Agenda Phase 3 2 Group results 3 Segment results 4 Risk and capital management Investor Relations 02/07 · 10
Slide 11: Strong performance against target ratios …
financial transparency. Strong performance against target ratios … Effect of corporate tax credit(2) Pre-tax RoE (target definition)(1) EPS (diluted) In % In EUR 6ppt 66% 31 11.55 0.70 25 10.86 6.95 16 13 4.53 2.31 4 0.63 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 (1) RoE based on average act
Slide 12: … and exceptional dividend growth
financial transparency. … and exceptional dividend growth Dividend per share, in EUR 32% CAGR 4.00 2.50 1.70 1.50 1.30 2002 2003 2004 2005 2006 (Recommended) Investor Relations 02/07 · 12
Slide 13: Significant profit growth
financial transparency. Significant profit growth Income before income taxes, in EUR bn 33% 8.1 81% 2.6 6.1 1.8 1.9 1.9 1.8 1.9 1.4 1.0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Full year 2005 2006 2005 2006 Investor Relations 02/07 · 13
Slide 14: Outstanding fourth-quarter net income
financial transparency. Outstanding fourth-quarter net income Net income, in EUR bn 70% 272% 6.0 1.8 1.7 1.2 1.2 3.5 1.1 0.9 1.0 0.5 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Full year 2005 2006 2005 2006 Investor Relations 02/07 · 14
Slide 15: Sustained progress on revenues
financial transparency. Sustained progress on revenues Net revenues, in EUR bn 11% 9% 28.3 25.6 8.0 6.8 7.2 6.6 6.6 6.5 6.4 5.9 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Full year 2005 2006 2005 2006 Investor Relations 02/07 · 15
Slide 16: Fourth-quarter operating cost base up 6%
financial transparency. Fourth-quarter operating cost base up 6% Operating cost base, in EUR bn 9% 6% 19.7 18.1 5.3 5.1 4.8 4.8 4.5 4.5 4.5 4.3 12.6 11.0 2.6 3.6 3.1 3.0 2.7 3.1 2.8 2.6 2.2 2.0 7.1 7.1 1.5 1.6 1.7 1.7 1.7 1.7 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Full year 2005 2006 2005 2006 Compensation and ben
Slide 17: Several factors influence fourth quarter non-comp expenses
financial transparency. Several factors influence fourth quarter non-comp expenses Non-comp operating cost base, in EUR m Change 4Q2006 vs. 3Q2006 Transaction and deal driven expenses ~135 Acquisition related expenses ~35 Seasonally driven expenses / contributions / other ~75 Total change ~245
Slide 18: Cost / income ratio down year-on-year
financial transparency. Cost / income ratio down year-on-year In % Underlying cost / income ratio(1) 70 73 73 80 68 71 73 73 74 71 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Full year 2005 2006 20052006 Underlying compensation ratio(2) Underlying non-compensation ratio(3) 46 45 45 43 46 46 45 45 45 46 37 24 28 28 28 2
Slide 19: Agenda
financial transparency. Agenda 1 Management Agenda Phase 3 2 Group results 3 Segment results 4 Risk and capital management Investor Relations 02/07 · 19
Slide 20: Best ever 4th quarter in Sales & Trading debt / other products …
financial transparency. Best ever 4th quarter in Sales & Trading debt / other products … S&T (debt and other) – net revenues Key features in 4Q2006 In EUR m Credit Stable and favourable market 2,826 conditions Good levels of customer activity 2,380 2,387 throughout the quarter 1,992 1,850 1,841
Slide 21: … and in Sales & Trading equity
financial transparency. … and in Sales & Trading equity S&T (equity) – net revenues Key features in 4Q2006 In EUR m Equity Derivatives Strong institutional / corporate demand 1,567 Positive overall market environment Emerging Markets Growing client demand for structured 1,023 1,070 products 82
Slide 22: Origination: Record quarter and improved market position
financial transparency. Origination: Record quarter and improved market position Origination – net revenues Key features in 4Q / FY2006 In EUR m 611 Equity Significant revenue growth in 576 Capital strong markets Markets Gained global market share 4Q2006 467 vs. 4Q2005* 423 442 434 396 403 Mar
Slide 23: Advisory: Another record quarter
financial transparency. Advisory: Another record quarter Advisory – net revenues Key features in 4Q / FY2006 In EUR m Global M&A markets at record levels 239 Improved market share and maintained ranking FY2006 vs. 208 FY2005(1) 197 180 Pipeline strong 156 145 148 Europe Improved ranking in F
Slide 24: GTB: Record year, with strong momentum
financial transparency. GTB: Record year, with strong momentum Results at a glance (underlying) Condensed P&L (underlying) Pre-tax profit, in EUR m In EUR m Key ratios, in % 4Q Δ vs. FY Δ vs. 205 2006 4Q2005 2006 FY2005 186 169 157 Revenues 586 14% 2,228 13% 148 135 125 113 Provisions* (1) n.m. 29 6
Slide 25: AWM: Profit stable year-on-year
financial transparency. AWM: Profit stable year-on-year Results at a glance (underlying) Condensed P&L (underlying) Pre-tax profit, in EUR m In EUR m Key ratios, in % 4Q Δ vs. FY Δ vs. 2006 4Q2005 2006 FY2005 243 237 241 205 208 Revenues 1,116 6% 4,081 9% 183 162 Provisions* (1) 56% 1 n.m. 125 OCB (
Slide 26: PBC: Costs reflect organic growth and acquisitions
financial transparency. PBC: Costs reflect organic growth and acquisitions Results at a glance (underlying) Condensed P&L (underlying) Pre-tax profit, in EUR m In EUR m Key ratios, in % 4Q Δ vs. FY Δ vs. 321 2006 4Q2005 2006 FY2005 281 244 246 254 261 252 235 Revenues 1,297 6% 5,003 6% Provisions* (
Slide 27: Agenda
financial transparency. Agenda 1 Management Agenda Phase 3 2 Group results 3 Segment results 4 Risk and capital management Investor Relations 02/07 · 27
Slide 28: Further progress on problem loans
financial transparency. Further progress on problem loans Problem loans, in EUR bn Coverage ratio* 4.8 4.6 4.3 3.9 3.6 3.5 3.5 3.3 53% 51% 51% 51% 49% 50% 48% 49% 31 Mar 30 Jun 30 Sep 31 Dec 31 Mar 30 Jun 30 Sep 31 Dec 2005 2006 * Allowance for loan losses divided by problem loans (excluding collate
Slide 29: Provisions down by 20% for the full year
financial transparency. Provisions down by 20% for the full year Provision for credit losses, in EUR m (20)% 350 280 129 81 91 98 80 78 70 4 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Full year 2005 2006 2005 2006 Thereof: CIB 4 3 5 (2) (72) (17) (28) 29 10 (88) 77 73 91 99 79 88 98 101 340 366 Thereof: PCAM Note: Div
Slide 30: Core capital remains at upper end of target range
financial transparency. Core capital remains at upper end of target range 9.2 9.1 9.0 8.9 8.9 8.9 8.7 8.8 8.7 9% Target range 8% 271 274 256 263 253 251 240 227 Tier 1 ratio, in % RWA, 31 Mar 30 Jun 30 Sep 31 Dec 31 Mar 30 Jun 30 Sep 31 Dec in EUR bn 2005 2006 Investor Relations 02/07 · 30
Slide 31: Adoption of IFRS
financial transparency. Adoption of IFRS Deutsche Bank converted from US GAAP to IFRS with effect from 1 January 2007 Key dates Deutsche Bank will convert its external reporting from US GAAP to IFRS with the publication of the interim report for 1Q2007 IFRS results are the key measure of busin
Slide 32: Additional information
financial transparency. Additional information Roadshow A Passion to Perform. Deutsche Bank
Slide 33: Number of shares for EPS calculation
financial transparency. Number of shares for EPS calculation In million Average At end of period FY FY 4Q 31 Dec 30 Sep 31 Dec 2005 2006 2006 2005 2006 2006 (1) Common shares issued 551 522 524 555 521 525 Total shares in treasury (34) (22) (25) (49) (24) (26) Common shares outstanding 517 500 498 5
Slide 34: Group headcount
financial transparency. Group headcount Full-time equivalents, at period end 31 Dec 2006 vs. 31 Dec 31 Dec 31 Mar 30 Jun 30 Sep 31 Dec 31 Dec 2005 2004 2005 2006 2006 2006 2006 Net of Total change de-/consoli- dation CIB 13,421 12,800 12,885 13,251 13,880 14,384 1,584 1,137 PCAM 26,055 26,587 27,143
Slide 35: Invested assets report
financial transparency. Invested assets(1) report In EUR bn 31 Dec 31 Mar 30 Jun 30 Sep 31 Dec Net new money 2005 2006 2006 2006 2006 4Q2006 FY2006 Asset and Wealth Management 698 713 683 713 732 3 21 Asset Management 536 544 518 540 543 (0) 6 Institutional 136 138 131 137 139 1 3 Retail 224 236 223
Slide 36: PWM assets: Reclassification of certain Rued Blass assets
financial transparency. PWM assets: Reclassification of certain Rued Blass assets In EUR bn 4Q FY 1Q 2Q 3Q 4Q FY 2005 2005 2006 2006 2006 2006 2006 Invested assets(1) before restatement 168 168 172 169 178 Reclassification as custody-only assets(2) (5) (5) (4) (4) (5) Invested assets(1) restated 163
Slide 37: Regional invested assets – AM and PWM
financial transparency. Regional invested assets(1) – AM and PWM In EUR bn 31 Dec 2006 31 Dec 31 Mar 30 Jun 30 Sep 31 Dec vs. 2005 2006 2006 2006 2006 31 Dec 2005 Asset Management 536 544 518 540 543 1% Germany 228 238 230 237 238 5% UK 10 7 8 8 10 (3)% Rest of Europe 51 50 48 49 48 (7)% Americas 22
Slide 38: Regional net new money – AM and PWM
financial transparency. Regional net new money – AM and PWM In EUR bn 4Q2005 FY2005 1Q2006 2Q2006 3Q2006 4Q2006 FY2006 Asset Management (8) (6) 5 (5) 6 (0) 6 Germany (1) 35 7 (1) 1 (3) 5 UK 0 (21) (1) 0 0 1 1 Rest of Europe (2) 0 (1) (1) 0 (2) (4) Americas (5) (13) (1) (4) 3 3 0 Asia / Pacific (0) (
Slide 39: Alternative assets exposure
financial transparency. Alternative assets exposure Book values, in EUR bn 2.6 2.7 2.7 2.5 2.5 2.5 0.6 0.6 0.6 2.3 2.3 0.2 0.2 CI - Private Equity funds 0.5 0.3 0.2 0.3 CI - Private Equity directs 0.3 0.5 0.5 0.3 0.4 CI - Real Estate 0.6 0.6 0.5 0.4 0.4 0.4 0.4 0.4 0.4 0.4 1.0 PCAM 0.9 0.8 1.0 1.0 1
Slide 40: Listed holdings – unrealised net gains of EUR 2.6 bn
financial transparency. Listed holdings – unrealised net gains of EUR 2.6 bn In EUR m Stake Market value (in %) 31 Dec 31 Dec 31 Mar 30 Jun 30 Sep 31 Dec 2006 2005 2006 2006 2006 2006 DaimlerChrysler AG 4.4% 1,930 2,124 1,728 1,770 2,103 Allianz AG 2.2% 1,234 1,330 1,191 1,316 1,494 Linde AG 7.8% 78
Slide 41: Loan book
financial transparency. Loan book In EUR bn 11% 179 166 170 CI/Other 153 158 145 145 148 90 79 CIB 73 79 63 65 68 66 80 81 83 84 85 88 90 PCAM 77 31 Mar 30 Jun 30 Sep 31 Dec 31 Mar 30 Jun 30 Sep 31 Dec 2005 2006 Note: Figures may not add up due to rounding differences Investor Relations 02/07 · 41
Slide 42: Risk efficiency
financial transparency. Risk efficiency VaR of CIB trading units (99%, 1 day), in EUR m S&T revenues: S&T revenues: EUR 2.3 bn EUR 2.9 bn 100 15% 90 76.9 80 67.0 69.8 69.8 69.8 70.5 63.9 64.0 70 60 50 1Q2005 2Q2005 3Q2005 4Q2005 1Q2006 2Q2006 3Q2006 4Q2006 ∅ 66.9 ∅ 65.9 ∅ 64.8 ∅ 65.9 ∅ 68.2 ∅ 67.6 ∅
Slide 43: Update on share buybacks 2006
financial transparency. Update on share buybacks 2006 Total Total repurchases 12.1 m 12.3 m 1.6 m 2.8 m 28.8 m In % of shares issued* 2.3% 2.3% 0.3% 0.5% 5.5 % Capital consumption EUR 1.1 bn EUR 1.1 bn EUR 0.1 bn EUR 0.3 bn EUR 2.6 bn Share Share price, in EUR Number of shares, in ‘000 buybacks 105
Slide 44: Cautionary statement regarding forward-looking statements and non-U.S. GAAP financial measures
financial transparency. Cautionary statement regarding forward-looking statements and non-U.S. GAAP financial measures This presentation contains forward-looking statements. Forward-looking statements are statements that are not historical facts; they include statements about our beliefs and expecta