Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Morgan Stanley European Financials Conference 2011
53 slides from Deutsche Bank's conference presentation, Mar 29, 2011
Slide 1: Ready for a new phase of success
Deutsche Bank Ready for a new phase of success Dr Josef Ackermann Dr. Chairman of the Management Board and the Group Executive Committee Deutsche Bank Morgan Stanley European Morgan Stanley European Financials Conference 2011 Financials Conference financial transparency. Investor Relations Dr. Josef
Slide 2: Agenda
Agenda 1 2010: a strong base for profitable growth 2 Delivering on Phase 4 of our management agenda Deutsche Bank Morgan Stanley European Financials Conference 2011 financial transparency. 2 Investor Relations Dr. Josef Ackermann, CEO
Slide 3: 2010 at a glance
2010 at a glance Solid result Expansion Strengthened equity capital base S Segment t earnings i on target t t Deutsche Bank Morgan Stanley European Financials Conference 2011 financial transparency. 3 Investor Relations Dr. Josef Ackermann, CEO
Slide 4: Strong revenue momentum
Strong revenue momentum I EUR bn In b Mark-downs Postbank related charge Net revenues 5%(3) 2.3 (1) 2.3 (2) 1.5 7.5 28 5 28.5 30.7 28 6 28.6 25.6 28 0 28.0 21.9 13.5 2004 2005 2006 2007 2008 2009 2010 Note: 2004-2005 based on U.S. GAAP, 2006 onwards based on IFRS (1) Includes significant property im
Slide 5: Cost impacted by specific items and declining risk provision
Cost impacted by specific items and declining risk provision I EUR bn In b Noninterest expenses Provision for credit losses Compensation and benefits Non-compensation expenses (52)% 23.3 21.4 2.6 19.2 19.9 20.1 17.5 18.3 12 7 12.7 13.1 11.3 11.0 12.5 9.6 10.2 1.3 1.1 0.6 8.7 8.8 10.6 0.4 0.4 0.3 7.3
Slide 6: 2010: a year of investments and transition
2010: a year of investments and transition Staff Cost development development Total non non-interest interest expenses, expenses in EUR bn Full time equivalents Full-time 1.6 (1) 0.3 0.6 0.1 23.3 Infrastructure / other 20.1 0.6 0.5 (0.1) 0.5 CI 102,062 Other (0.3) PCAM 0.4 CIB G General l (0 3) (0.3
Slide 7: 2011 profit target well within reach
2011 profit target well within reach 2010 income 2010, i b f before i income t taxes, i EUR bn in b Group Segments Additional impacts in 2010: — EUR (0.5) bn specific items(1) 10.0 Not part — EUR (0.7) bn specific investments(2) of target 0.4 7.0 0.2 7.2 2.3 0.2 6.5 2.6 4.0 4.0 Reported Postbank- Ot
Slide 8: Composition of 2011 pre-tax profit potential
Composition of 2011 pre-tax profit potential I Income before b f income i taxes, t in i EUR bn b Phase 4 potential 2011 Update FY2009 FY2010 Dec 09 Comment Feb 11 Corporate Banking 3.5 5.1 6.3 Benefits from CIB integration g 6.4 & Securities CIB Global Transaction Adjustment to reflect lower level o
Slide 9: Capital management accommodating for growth and regulatory changes
Capital management accommodating for growth and regulatory l t changes h At period end, in EUR bn Total shareholder’s shareholder s equity Tier 1 capital Core Tier 1 capital 33% 24% 26% 48.8 42.6 36.6 34.4 12.3 30 0 30.0 23.8 8.7 2009 2010 2009 2010 2009 2010 Tier 1 ratio, in % Core Tier 1 ratio, in
Slide 10: Funding costs are a source of competitive advantage
Funding costs are a source of competitive advantage ~ EUR150 bn b raised i d iin capital it l markets k t since i 2007 Senior benchmark issuance: Deutsche Bank vs. peers Bps over Euribor / Libor 350 350 DB 5yr EUR new issue spread DB 5yr senior CDS European Peer 300 US Peer 300 European Peer 250 250
Slide 11: Agenda
Agenda 1 2010: a strong base for profitable growth 2 Delivering on Phase 4 of our management agenda Deutsche Bank Morgan Stanley European Financials Conference 2011 financial transparency. 11 Investor Relations Dr. Josef Ackermann, CEO
Slide 12: Economic environment remains challenging
Economic environment remains challenging Global Macroeconomic Tensions Current account balances (% GDP), annual avg. for 2000-2010 Germany 5.1 Diverse Italy (2.3) Spain (6.9) global Euro Area 0.2 Bank economic USA (4.7) Canada 04 0.4 levies d develop- l Japan 3.6 ment India (1.1) China 6.7 OECD (1.2
Slide 13: CIB: Second best full-year results ever with significantly lower resources
CIB: Second best full-year results ever with significantly lower resources Income before income taxes Significantly lower resources In EUR bn CIB resources, current vs. peak levels(1) 39% 6.1 6.0 51 5.1 (34)% Balance Sheet 4.3 4.3 2.8 ((18)% ) RWA (47)% Value at risk (2) (100)% Dedicated Prop Tradin
Slide 14: Consistently delivering more stable revenues than peers
Consistently delivering more stable revenues than peers Lower volatility of results … … but better performance 2002-2010: CIB average annual revenues(1) vs. 2002-2010: CIB total revenues, in EUR bn average volatility(2), in EUR bn DB aggregate out-performance (2002 – 2010): EUR 25 bn 7 Deutsche Bank
Slide 15: Our core CIB business will continue to deliver strong ROE
Our core CIB business will continue to deliver strong ROE Significant proportion of RWA in legacy business Observations CIB RWA breakdown illustrative — Core business expected to return above cost of equity despite additional RWA requirements ~25% — Growth in core business profitability from higher
Slide 16: GTB successfully withstood macroeconomic headwinds
GTB successfully withstood macroeconomic headwinds … Stable total revenues throughout the Solid net interest revenues business cycle during low interest rate environment Real GDP growth Euroland USA Interest rates ECB main refinancing rate Fed funds target rate 2.8 2.8 1.9 1.7 0 3 0.0 0.3 2007 2008
Slide 17: GTB: major pillar of liquidity and performance
... and is one of the major pillars of Deutsche Bank’s li idi and liquidity d performance f Liquidity provided to DB Group Pre-tax Return on Equity(3) GTB B/S, B/S in EUR bn bn, 31 December 2010 In % %, based on Average Active Equity 120 Non interest Non-interest Cash bearing deposits provided +65 t
Slide 18: CIB integration will enable us to reach our Vision 2011 targets
CIB integration will enable us to reach our Vision 2011 targets 2011 IBIT impact, in EUR bn Cost Revenue Elements of Integra synergies synergies Examples New coverage model across CIB mline — Eliminate duplication now in place across C-suite and and streamline t treasury level l l relationships l
Slide 19: Connecting even more effectively across CIB to help clients
Connecting even more effectively across CIB to help clients E Examples l — Bookrunner on third — Advisor on sale of T-Mobile largest IPO ever — Joint lead bookrunner for USA to AT&T — Coverage, C ECM ECM, FX FX, equity raising — Coverage, M&A, ECM, Equity Sales, Equity — Coverage, ECM, Equity Equity
Slide 20: PCAM: Positive momentum maintained
PCAM: Positive momentum maintained I EUR bn In b Income before income taxes Key features in 2010 — Accelerated Postbank takeover — Completed Sal. Oppenheim acquisition 2.1 — Private Wealth Management: negatively 1.9 50% affected by Sal. Oppenheim / BHF and 1.4 1.5 special items 1.0 0.7 — Assets unde
Slide 21: AM: Business rightsizing efforts have proven successful
AM: Business rightsizing efforts have proven successful Headcount reduction Platform de-risking Cost management Reported FTEs Risk positions(1), in EUR bn Non-interest expenses(2), in EUR bn (30)% (75)% (32)% 3,505 2.5 2.1 1.4 2,443 0.6 2007 2010 2007 2010 2007 2010 (1) Seed capital and co co-invest
Slide 22: Key 2011 business initiatives
Key 2011 business initiatives Asset — Continued focus on improving investment performance Management — Increased co-operation across channels and with the Bank DWS — Sales S l growth th with ith ffocus on select l t product d t DWS iis already l d strong t ((e.g. municipals) i i l ) Investments — Pe
Slide 23: PWM in the league of leading wealth managers
PWM in the league of leading wealth managers Invested Assets As of 31 December 2010 2010, in EUR bn Brokerage assets 1,515 Wealth Management/ Private Banking assets 1,207(1) 1,171 649 550(2) 617 428 291 275(3) 254 400 137 214 238 Bankk off B Morgan M UBS Credit C di JP HSBC BNP Paribas P ib JJulius
Slide 24: Key revenue and cost initiatives towards 2011 target
Key revenue and cost initiatives towards 2011 target A Asset t Mi Mix — Shift off assets t from f lower l margin i products d t tot higher hi h margin i assett classes l — Continue strong g asset g gathering g history y of PWM; increase Client Business Net New Assets Volume(CBV) across all regions L
Slide 25: Germany: Continued healthy economy
Germany: Continued healthy economy … GDP growth with “V-shaped” recovery, robust outlook German exports vs. world trade Real, in % qoq (lhs) yoy (rhs) Indexed, Jan 2004 = 100 German exports World trade 3 6 175 2 4 150 1 2 0 0 125 (1) (2) (2) (4) 100 (3) (6) (4) (8) 75 2007 2008 2009 2010 2011e 04 05
Slide 26: Retail banking environment better than perceived
…and a retail banking environment better than perceived Retail banking markets overview Positioning of combined PBC / Postbank R t il b Retail banking ki revenues after ft risk i k costs t 2009(1), in i EUR bn b — Significant combined PBC / Postbank share in 61 Europe’s largest retail banking market
Slide 27: In this environment PBC is gaining momentum
In this environment PBC is gaining momentum... I EUR m In Revenues Income before income taxes Postbank effect Severances(1) 3% (3) 6,136 5,576 414 306 28%(4) Other products ex PoBA 422 313 940 Portfolio/fund mgt. 257 22% (2) 887 50 Advisory/brokerage 841 5% 706 Deposits & Payments 1,706 11% 1,891 24
Slide 28: Based on additional volumes
... based on additional volumes ... I EUR bn, In b indexed i d d Investment products Deposits Loans incl. Postbank 6% 2% 4% 2009 2010 2009 2010 2009 2010 Notes: Investment Products: incl. volumes of equities, bonds, funds, insurance surrender volumes held by DB clients. Deposits: incl. volumes of si
Slide 29: And strict portfolio measures
… and strict portfolio measures P i i ffor credit Provision dit llosses, iin EUR m illustrative De-risk De risk portfolio (6)% 802 — Regularly review and de-risk portfolio 790(1) 746 — Focus on affluent customer segment Protect profitability — Optimise RWA allocation — Improve pricing discipline and
Slide 30: PBC and PB Retail key ratios: RoE and CIR
PBC and PB Retail key ratios: RoE and CIR High RoEs through the crisis ... ... but efficiency to be improved Pre-tax RoE, in % Cost-Income-Ratio, in % PBC(1) PBC(1) Postbank Retail reported Postbank Retail reported xx Combined xx Combined 33 35 24 32 68 68 71 69 42 71 73 72 39 70 64 64 67 65 34 33 3
Slide 31: Postbank: Potential for mid-term capital relief
Postbank: Potential for mid-term capital relief from run-off of non-customer t assets t 31 December 2010, in EUR bn Operational risk illustrative 210 Non- N Customer 67 Bank 7.8 Non- Aspire to free-up Customer customer capital and redeploy at B k Bank assets higher RoE Customer assets Assets RWA Inc
Slide 32: A clear integration roadmap has been defined
A clear integration roadmap has been defined ... Deepening Cooperation / Alignment / Integration / Target state definition Harmonization Migration — Implementation of target — Transition to integrated business model — Assure continued strong target g state — Migration to joint IT operating performan
Slide 33: Ambition level for the combined retail franchise
… to reach ambition level for the combined retail franchise Revenues of EUR >10 bn Synergies of EUR ~ 1 bn Income before income taxes of EUR >3 bn Cost / income ratio of <60% Pre-tax Pre tax RoE of >20% Top 5 retail deposit taker in Europe Assumptions: Full run-rate, i.e. full synergies realized PPA
Slide 34: Megatrends driving growth in Asia supporting our businesses
Megatrends driving growth in Asia supporting our b i businesses Well-positioned today On track to achieve our aspirations Net revenues Asia/Pacific excl. Japan, in EUR bn Bank of 2005, 2007 the Year 2008 — FX #1 — Fixed income #1 Top 5 investment 21% p.a. CB&S(1) banking franchise ~4.0 — Cash Eq
Slide 35: Re-invigorating our performance culture
Re-invigorating our performance culture — Reinvigorate commitment Franchise to firm values values Complexity Reduction — Execute stated strategy In-year cost savings(1), in EUR bn 0.8 1.1 Performance — Leverage Value Based Management to accountability enhance performance 0.3 2010 2011E 2012E — Simpl
Slide 36: The new Deutsche Bank
The new Deutsche Bank Well capitalised More balanced Core tier 1 ratio Income before income taxes (1) Classic banking (PCAM / GTB) Investment bank (CB&S) 8.7% > 8% Basel 2.5 Basel 3 29% >40% De-risking <60% Retained 71% ABN AMRO earnings Netherlands Dec 2010 Jan 2013 2009 2010 2013 More efficient Ho
Slide 37: 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
Slide 38: Additional information
Deutsche Bank Additional information
Slide 39: Management Agenda Phase 4
Management Agenda Phase 4 Management Agenda Phase 4 2009 – 2011 Increase CIB profitability with renewed risk and Focus on core PCAM businesses and home market balance sheet discipline leadership Focus on Asia as a key driver Reinvigorate our of revenue growth performance culture Deutsche Bank Morgan
Slide 40: Key actions in 2010
Key actions in 2010 — Fully integrated investment bank under single management team CIB — Maintained risk discipline p — Increased market presence in the Netherlands via ABN AMRO acquisition — Accelerated Postbank takeover PCAM — Acquired Sal. Oppenheim and accelerated alignment — Completed restruct
Slide 41: 2010 highlights
2010 highlights FY2010 adjusted for FY2010 acquisitions FY2009 Income before income taxes (in EUR bn) 4.0 6.5 (1) 5.2 Profita- Net income (in EUR bn) 2.3 4.8 5.0 bility Pre-tax RoE (target definition)(2) 15% 15% Diluted EPS ((in EUR)) 2.92 6.94 6 9 31 Dec 2010 31 Dec 2009 Tier 1 capital ratio 12.3%
Slide 42: Strong capital ratios
Strong capital ratios 12.6 12.3 11.9 10 1 10.1 8.6 8.7 8.5 8.6 Target: ≥10% 87 8.7 8.7 8 87 8.7 7 7.2 7.3 6.9 6.9 7.0 329 346 275 308 273 217 251 2004 2005 2006 2007 2008 2009 2010 Tier 1 ratio, in % Core Tier 1 ratio, in % RWA, in EUR bn Note: Tier 1 ratio = Tier 1 capital / RWA; core Tier 1 ratio
Slide 43: Assumptions for target 2011
Assumptions for target 2011 December 2009 Update February 2011 — N ffurther No th major j market k t dislocations di l ti — U h Unchanged d — Normalization of asset valuations — Unchanged — Global revenue fee pool: — Slower growth in fee pools g y CAGR of 9% to a level slightly below 9M2007 annualiz
Slide 44: How to achieve our 2011 target: CB&S
How to achieve our 2011 target: CB&S Income before income taxes 2010 impacts In EUR bn — EUR 0.4 bn Ocala charges — EUR 0.3 bn of severance(1), partially related to CIB integration 6.3 01 0.1 64 6.4 2011 drivers and actions 5.1 — Positive market environment — Stronger global GDP growth + — Reap reve
Slide 45: How to achieve our 2011 target: GTB
How to achieve our 2011 target: GTB Income before income taxes 2010 impacts In EUR bn — ABN AMRO acquisition impact of EUR 0.2 bn, driven by gain from 1.3 negative goodwill — EUR 0.1 bn efficiency measures 1.0 (complexity reduction, CIB integration) 0.9 ((0.3)) 02 0.2 (1) 2011 dri drivers ers and ac
Slide 46: How to achieve our 2011 target in AWM Asset Management
How to achieve our 2011 target in AWM A Asset t Management M t Income before income taxes 2010 impacts In EUR bn — EUR 33 m severance 0.1 0.6 0.5 2011 drivers and actions — Realize full-year benefit from improved platform efficiency p y 0.3 — Capitalize on growth in Equity and Real Estate valuations
Slide 47: How to achieve our 2011 target in AWM Private Wealth Management
How to achieve our 2011 target in AWM P i t Wealth Private W lth Management M t Income before income taxes 2010 impacts In EUR m In EUR bn — Sal. Oppenheim clean-up / alignment — Preparation of BHF disposal 04 0.4 2011 drivers and actions — Achieve break-even in Sal. Oppenheim BHF 368 200 impair- —
Slide 48: How to achieve our 2011 target: PBC
How to achieve our 2011 target: PBC Income before income taxes 2010 impacts In EUR bn — Small net positive Postbank contribution — Berliner Bank integration / IT investment 0.1 1.6 15 1.5 — Effi i Efficiency measures (severance) ( ) 2011 drivers and actions (1) 09 0.9 — Launch Postbank integration —
Slide 49: The roadmap to PBC's ambition level
The roadmap to PBC’s ambition level ... I Income before b f income i taxes, t in i EUR bn b >3 ~1(2) 0.1 Assumptions: 1.6 Full run-rate, i.e. full synergies realized No further cost-to-achieve PPA effects ff t ffully ll amortized ti d No material impact from non- customer bank (1) Published Postbank
Slide 50: Realized through substantial synergies
… realized through substantial synergies I EUR m In Split by type Split by category Cost-to-achieve ~1 bn p.a. ~1 bn p.a. ~1.4 bn Revenue synergies 100 Sales 100 Revenue ~250 250 Cross divisional synergies Cross-divisional 100 PBC P Premium i P Processes 260 synergies DB / PB cooperation(3) 130 Sale
Slide 51: AWM: Influenced by investments
AWM: Influenced by investments I Income before b f income i taxes, t in i EUR m Asset Management (AM) Private Wealth Management (PWM) Specific items 50% 368 501 BHF i impairment i t 62 200 335 Sal. Oppenheim / (1) BHF 306 135 36 268 301 (2) 33 164 (168) 2009 AM PWM AM Sal. Opp./ AM and PWM reported
Slide 52: Megatrends driving growth in Asia
Megatrends driving growth in Asia Megatrends Growth of private wealth pools GDP per capita in developing Asian countries, indexed 2004 = 100 Emerging consumer 388 class 203 100 134 Urbanization 2004 2006 2008 2015 Infrastructure Rise of Asian corporates requirements Percent of top 1,000 global corpo
Slide 53: Continued focus on cost efficiency
Continued focus on cost efficiency Complexity Reduction Program, CIB integration and Postbank integration In EUR m Gross cost savings 2500 Cost-to-achieve 2000 1500 500 1000 Net cost savings 500 0 2010 2011 2012 2013 2014 2015 Deutsche Bank Morgan Stanley European Financials Conference 2011 financia
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