Slide 1: Deutsche Bank Analyst Call
Deutsche Bank Deutsche Bank Analyst Call Anshu Jain, Co-Chairman of the Management Board and the Group Executive Committee Stefan Krause, Chief Financial Officer 31 January 2013
Slide 2: Results at a glance
Results at a glance In EUR bn, unless otherwise stated 4Q FY 2012 2011 2012 2011 Revenues 7.9 6.9 33.7 33.2 Performance Core Tier 1 ratio, Basel 3 fully loaded, in %(1) 8.0 <6.0 8.0 <6.0 highlights Dividend per share, EUR - - 0.75(2) 0.75 Reported Group IBIT (2.6) (0.4) 1.4 5.4 Non-Core Operations U
Slide 3: Ahead of target on capital strength
Ahead of target on capital strength Accelerated capital demand reduction … … raising capital aspirations Pro-forma B3 RWA equivalent(1) relief, in EUR bn, period end Pro-forma B3 CT 1 ratio, (fully loaded), in %, period end Achieved by ID(2) goal >200bps Dec 2012 Mar 2013 8.5 8.0 8.0 7.2 Non-Core Op
Slide 4: Operational Excellence Program well underway
Operational Excellence Program well underway Cost savings Achievements by 4Q2012 (selected examples) In EUR bn Achieved / underway Target IT platform — 660 applications decommissioned; new apps reduced by 50% renewal — >20 million clients shifted to common retail banking IT platform(2) 1.6 — CB&S ri
Slide 5: Our franchise remains resilient
Our franchise remains resilient Revenues, in EUR bn Private & Business Asset & Wealth Global Transaction Corporate Banking & Clients Management Banking Securities 15.6 14.1 10.4 9.5 4.3 4.5 4.0 3.6 FY11 FY12 FY11 FY12 FY11 FY12 FY11 FY12 Deutsche Bank Anshu Jain and Stefan Krause financial transpare
Slide 6: Strategy 2015+: Committed to delivery
Strategy 2015+: Committed to delivery Strong underlying performance enabled us to embark upon a path of deliberate but tough decisions We are convinced that this path will lead us in the right direction – becoming the world’s leading client-centric global universal bank This is a journey that we wil
Slide 7: Agenda
Agenda 1 Group results 2 Segment results 3 Key current issues Deutsche Bank Anshu Jain and Stefan Krause financial transparency. 7 Investor Relations 31 January 2013
Slide 8: Overview
Overview 4Q2012 FY2012 Income before income taxes (in EUR bn) (2.6) 1.4 Net income (in EUR bn) (2.2) 0.7 Profitability Pre-tax return on average active equity (19)% 2% Diluted EPS (in EUR) (2.31) 0.64 Dividend per share (in EUR) 0.75 0.75 31 Dec 2012 31 Dec 2011 Core Tier 1 capital ratio 11.6% 9.5%
Slide 9: Group financial performance – 4Q2012
Group financial performance – 4Q2012 4Q2012 Non-Core (1) In EUR m Group Core Bank Operations Unit Revenues 7,868 7,870 (3) Provision for credit losses (434) (329) (105) (2) Noninterest expenses (adjusted) (7,148) (6,564) (584) IBIT (adjusted) 287 978 (692) Impairment of goodwill and other intangible
Slide 10: Group financial performance – FY2012
Group financial performance – FY2012 FY2012 Non-Core (1) In EUR m Group Core Bank Operations Unit Revenues 33,741 32,683 1,058 Provision for credit losses (1,721) (1,087) (634) (2) Noninterest expenses (adjusted) (27,133) (25,060) (2,073) IBIT (adjusted) 4,887 6,536 (1,649) Impairment of goodwill an
Slide 11: 4Q2012 IBIT adjustments and specific items
4Q2012 IBIT adjustments and specific items In EUR m Reported and adjusted IBITs Further specific items Impairment of IBIT intangible IBIT Other reported assets adjusted CtA(1) (net)(2) Other includes: CB&S (548) (1,174) 626 (87) 14 DVA, CVA, litigation GTB (259) (73) (186) (41) (420) Netherlands tur
Slide 12: 4Q2012 impairment of goodwill and other intangible assets
4Q2012 impairment of goodwill and other intangible assets Goodwill Intangibles 4Q2012 4Q2012 total impairment of impairment of Balance Reassignment 4Q2012 goodwill Balance other intangible goodwill and other 30 Sep 2012 of goodwill(1) impairment 31 Dec 2012(2) assets(3) intangible assets CB&S 3,476
Slide 13: Net revenues
Net revenues In EUR bn 33.2 33.7 10.5 9.2 8.5 8.7 8.0 7.9 7.3 6.9 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY FY 2011 2012 2011 2012 Deutsche Bank Anshu Jain and Stefan Krause financial transparency. 13 Investor Relations 31 January 2013
Slide 14: Provision for credit losses
Provision for credit losses In EUR m Non-Core Operations Unit 1,839 Core Bank 1,721 385 634 540 555 464 463 136 419 434 373 121 73 300 105 (1) 55 314 138 (1) 1,4551,564 (1) 1,438 (1) 91 531 1,087 (1) 449 (1) 382 (1) 390 404 400 (1) 318 343 352 (1) 355 (1) 256 278 281 254 329 223 1Q 2Q 3Q 4Q 1Q 2Q 3Q
Slide 15: Noninterest expenses
Noninterest expenses In EUR bn Compensation and benefits Litigation related charges 30.6 General and administrative expenses EUR 1.2 bn Goodwill and other intangible assets 26.0 Restructuring costs 10.0 13.5 Other noninterest expenses(1) 3.2 13.1 7.1 6.7 7.0 6.6 7.0 6.3 5.9 4.3 2.8 3.7 3.4 3.3 3.4 2
Slide 16: Cost base development: 4Q2012 vs. 3Q2012
Cost base development: 4Q2012 vs. 3Q2012 Noninterest expenses, in EUR m Adjusted cost base Adjustments to noninterest expenses In EUR m In EUR m 3Q2012 4Q2012 In % 6,084 6,135 Reported 6,977 10,003 3,026 43% 51 Impairments of goodwill and - (1,855) other intangibles Significant litigation related (2
Slide 17: Variable compensation
Variable compensation Variable comp(1) as % of net revenues Variable comp(1) and deferral rate In EUR bn Deferral rate 22% Cash 20% 4.8 Deferred 19% 4.3 17% 15% 3.6 (11)% 2.7 3.2 (12)% 2.2 11% 1.4 9% 1.7 43% 61% 49% 47% 2.1 2.1 2.2 1.5 2006 2007 2008 2009 2010 2011 2012 2009 2010 2011 2012 (1) Varia
Slide 18: Deferred compensation costs
Deferred compensation costs Unamortized deferred compensation costs and amortization schedule(1) Key panel findings In EUR bn — Ensure future performance is not disproportionately (16)% impacted by deferral from 3.3 prior years 2.8 — Pay philosophy to place more emphasis on the ‚how‘ of individual p
Slide 19: Profitability
Profitability Income before income taxes Net income In EUR bn Adjusted IBIT(2) In EUR bn 3.0 2.1 1.8 1.9 0.3 1.2 1.4 0.9 1.0 1.1 0.8 0.2 0.7 0.8 (0.4) (2.6) (2.2) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2011 2012 2011 2012 Pre-tax return on equity(1), in % Effective tax rate, in % 24 14 7 (3
Slide 20: Capital ratios and risk-weighted assets
Capital ratios and risk-weighted assets Basel 2 Basel 2.5 15.3 14.0 13.8 13.6 14.2 Tier 1 ratio, in % 13.4 12.9 13.4 12.3 10.7 11.6 9.6 10.2 10.1 9.5 10.0 10.2 Core Tier 1 ratio, in % 8.7 381 368 373 366 346 338 334 328 320 RWA, in EUR bn 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2010 2011 2012 Note: Tier 1 ratio
Slide 21: Core Tier 1 capital and RWA development
Core Tier 1 capital and RWA development Core Tier 1 capital RWA In EUR bn In EUR bn 39.3 1.9 366.1 (0.2) 38.5 (3.6) 333.6 (0.1) (0.4) (17.6) (11.1) (0.1) 0.5 (2.2) (0.2) 30 Sep Net in- Divi- CDI(2) Impair- Mino- Other FX 31 Dec 30 Sep FX Effect Credit Market Operational 31 Dec 2012 come(1) dend ment
Slide 22: Reconciliation to Basel 3 pro-forma (fully loaded)
(1) Reconciliation to Basel 3 pro-forma (fully loaded) In EUR bn, as per 31 Dec 2012 RWA Core Tier 1 capital 11.6% 12.5% 8.0% B 3 phase-in B 3 fully loaded B 3 phase-in B 3 fully loaded 75 409 401 11 1 51 >> (8) 334 7.2% 39 32 (19) B 2.5 Total Total B 2.5 T1 Total Total deductions put against AT1(2)
Slide 23: De-risking well on track
De-risking well on track Capital demand toolbox(1) Pro-forma Basel 3 RWA equivalent(2) relief, in EUR bn Planned by Achieved in … 31 Mar 2013 3Q 4Q Total Initial Updated 2012 2012 2H2012 Target Target Non-Core Operations Unit(3) ~16 ~13 ~29 ~45 Portfolio optimization — Rightsizing of core portfolios
Slide 24: De-risking in 4Q2012
De-risking in 4Q2012 Breakdown of de-risking in 4Q2012 Examples Source of de-risking(1), in EUR bn Asset Sale / Hedging Model / Process — VaR multiplier reduction from 5.5 to 4 on the back of strengthening of our NCOU(3) 11 Roll out of market risk models and processes 13 Roll out advanced — Approval
Slide 25: Agenda
Agenda 1 Group results 2 Segment results 3 Key current issues Deutsche Bank Anshu Jain and Stefan Krause financial transparency. 25 Investor Relations 31 January 2013
Slide 26: Corporate Banking & Securities
Corporate Banking & Securities Income before income taxes Key features In EUR m In EUR m 4Q12 4Q11 3Q12 FY2012 FY2011 Impairment of goodwill 4Q2012 specific items: and other intangibles Revenues 3,430 2,397 4,002 15,648 14,109 Cost-to-achieve related to OpEx (87) Other specific items(3) Prov. for cr
Slide 27: Sales & Trading debt and other products
Sales & Trading debt and other products Revenues Key features In EUR m 4Q12 4Q11 3Q12 FY2012 FY2011 Overall CVA impact — Revenues down q-o-q reflecting the seasonal slow-down and high levels 3,568 Revenues of market activity in 3Q2012 Prov. — 4Q12for credit revenues affected by EUR 186 m of negative
Slide 28: Sales & Trading equity
Sales & Trading equity Revenues Key features In EUR m 4Q12 4Q11 3Q12 FY2012 FY2011 Overall — Solid performance in Equity Derivatives offset by lower revenues in Cash Revenues Equities and Prime Finance resulting in lower revenues q-o-q 895 Prov. for credit — FY2012 revenues were in-line y-o-y with l
Slide 29: Origination & Advisory
Origination & Advisory Revenues Key features In EUR m 4Q12 4Q11 3Q12 FY2012 FY2011 Overall Origination — Very strong performance y-o-y driven by higher volumes and market Advisory Revenues share gains 717 714 Prov. for credit — Ranked No.5 globally with record market share 677 701 losses — Ranked No
Slide 30: Global Transaction Banking
Global Transaction Banking Income before income taxes Key features In EUR m 4Q2012 specific items: In EUR m 4Q12 4Q11 3Q12 FY2012 FY2011 Impairment of goodwill and Cost-to-achieve related to OpEx (41) other intangible assets Revenues 1,066 929 1,001 4,006 3,608 Other specific items(2) (420) Prov. fo
Slide 31: Asset and Wealth Management
Asset and Wealth Management Income before income taxes Key features In EUR m In EUR m 4Q12 4Q11 3Q12 FY2012 FY2011 Impairment of goodwill and 4Q2012 specific items: other intangible assets Revenues 1,100 1,172 1,232 4,466 4,277 Cost-to-achieve related to OpEx (15) Other specific items(3) (167) Prov.
Slide 32: Private & Business Clients
Private & Business Clients Income before income taxes Key features In EUR m In EUR m 4Q12 4Q11 3Q12 FY2012 FY2011 Cost-to-achieve Net HuaXia one-off gain Revenues 2,403 2,578 2,436 9,541 10,393 related to Postbank integration (1) 4Q2012 specific items: Prov. for credit (216) (283) (189) (781) (1,185
Slide 33: Non-Core Operations Unit
Non-Core Operations Unit Income before income taxes Key features In EUR m In EUR m 4Q12 4Q11 3Q12 FY2012 FY2011 Impairment of goodwill and 4Q2012 specific items: other intangible assets Revenues (3) (412) 400 1,058 879 Other specific items(5) (463) Prov. for credit (105) (136) (300) (634) (385) 79 l
Slide 34: Agenda
Agenda 1 Group results 2 Segment results 3 Key current issues Deutsche Bank Anshu Jain and Stefan Krause financial transparency. 34 Investor Relations 31 January 2013
Slide 35: Litigation
Litigation In EUR bn Mortgage repurchase Litigation reserves Contingent liabilities demands/reserves In USD Demands Reserves ~1.8 ~2.5 ~4.6 ~2.0 ~3.3 ~0.8 ~0.4 ~0.5 30 Sep 2012 31 Dec 2012 30 Sep 2012 31 Dec 2012 30 Sep 2012 31 Dec 2012 — Increases attributable to — Decreases driven by resolution of
Slide 36: De-risking in NCOU well on track
De-risking in NCOU well on track Major accomplishments in 2012 (Pro-forma Basel 3 RWA equivalent basis) Size of Non-Core Operations unit Adjusted assets(1), in EUR bn — Portfolio de-risking, primarily from 120(2) Former 95 sales of low rated securitisations: ~90 CB&S 66 EUR 23 bn (4Q EUR 7 bn) <80 5
Slide 37: NCOU: Capital accretion & asset breakdown
NCOU: Capital accretion & asset breakdown Capital accretion Total adjusted assets(1) In EUR bn 2011 2012 In EUR bn, as of 31 Dec 2012 AWM Total assets(1) 130 95 (35) IAS 39 CI 1.8 reclassified assets 15.4 17.0 Risk weighted assets, >150 106 >(44) Basel 3 fully loaded PBC: Other 4.2 7.3 Other loans C
Slide 38: Funding
Funding Funding profile further improved Major achievements As of 31 Dec; total 2011: EUR 1,133 bn(1); total 2012: EUR 1,101 bn(1) 59% from most stable 62% from most stable — Highest share ever (62%) from most stable funding sources(1) funding sources(1) funding sources by end 2012 Financing Financi
Slide 39: Additional Information
Deutsche Bank Additional Information
Slide 40: Funding activities update
Funding activities update Funding cost development Observations In bps 360 — 2012 recap: Raised EUR18 bn in European Peer CDS(1) capital markets at an average 320 US Peer CDS(2) DB 5yr Senior CDS spread of L+64 bps 280 DB issuance spread(3) — EUR 5 bn (~28%) by DB issuance activity benchmark issuanc
Slide 41: PBC business division performance
PBC business division performance In EUR m, post-minorities 1Q2011 2Q2011 3Q2011 4Q2011 FY2011 1Q2012 2Q2012 3Q2012 4Q2012 FY2012 Reported IBIT 231 124 133 86 574 234 134 100 1 470 Impact from Greek government bonds (42) (11) (9) (62) 1 1 Advisory Cost-to-achieve related to Postbank (38) (35) (35) (
Slide 42: Impaired loans
(1) Impaired loans In EUR bn Non-Core Operations Unit Core Bank 9.8 10.2 9.4 9.2 9.6 8.5 7.6 4.3 6.7 3.9 3.7 4.1 3.8 3.3 3.0 2.6 5.1 5.5 5.5 5.7 5.9 5.8 4.1 4.6 2011 2012 Cov. Ratio(2) 50% 46% 45% 44% 44% 45% 45% 49% (1) IFRS impaired loans include loans which are individually impaired under IFRS, i
Slide 43: Loan book
Loan book In EUR bn 416 417 412 415 408 402 398 398 69 65 62 58 54 50 NCOU 78 73 26 28 27 29 29 30 AWM 23 24 205 208 208 209 211 209 PBC 202 202 47 58 58 58 59 58 59 GTB 45 CB&S 50 52 58 58 56 59 56 54 31 Mar 30 Jun 30 Sep 31 Dec 31 Mar 30 Jun 30 Sep 31 Dec 2011 2012 Germany excl. Financial Institut
Slide 44: Composition of loan book and provisions by category
Composition of loan book and provisions by category In EUR bn, as of 31 December 2012 Core Bank 434 4Q12 provision for credit losses, in EUR m Non-Core Operations Unit 226 137 70 402 Low loan to value 50 (9) Partially hedged Highly diversified Mostly (3) Short collate- Sub- (151) term ralized Liquid
Slide 45: Balance sheet and risk weighted assets
Balance sheet and risk weighted assets XX RWA density incl. operational risk RWA(1) vs. balance sheet (adj. assets) XX RWA density excl. operational risk In EUR bn, as of 31 Dec 2012 ~28% 282 282 ~24% 1,199 Avg. RWA density Non-derivative Market Risk RWA 53 64 trading assets 57 ~23% 246 64 ~30% Othe
Slide 46: Total assets (adjusted)
Total assets (adjusted) In EUR bn 1,281 Positive market values Derivatives post- Derivatives post- 72 netting 1,199 netting from derivatives 71 Trading securities 228 Financial assets 256 Trading assets at FV through P&L 218 Other trading assets 28 246 Trading assets Reverse repos / 27 securities bo
Slide 47: IAS 39 reclassification
IAS 39 reclassification Carrying Value vs. Fair Value 4Q2012 developments In EUR bn — During 4Q2012, the IAS 39 reclassified asset portfolio was transferred into the Non-Core Sales & Trading - Debt Origination & Advisory Operation Unit — The gap between carrying value and fair value 31 Dec 31 Dec 31
Slide 48: Credit trading – Correlation book
Credit trading – Correlation book Significantly reduced since 2009 Portfolio development Risk development Outstanding notional, in EUR bn Development of key risk metrics, in EUR m 74% 100 1,000 200 94 80 800 (46)% 60 53 Down ~10% vs. 600 (26)% 53 30 Sep 2012 40 400 28% 20 - 200 31 Dec 2009 Unwound M
Slide 49: Number of shares
Number of shares In million Average used for EPS End of period numbers calculation 31 Dec 31 Dec 31 Dec FY2010 FY2011 4Q2012 2010 2011 2012 Common shares issued (1) 741 929 929 929 929 929 Total shares in treasury (4) (17) (2) (10) (25) 0 Common shares outstanding 737 913 927 919 905 929 Vested shar
Slide 50: Balance sheet leverage ratio (adjusted)
Balance sheet leverage ratio (adjusted) In EUR bn 2011 2012 31 Mar 30 Jun 30 Sep 31 Dec 31 Mar 30 Jun 30 Sep 31 Dec Total assets (IFRS) 1,842 1,850 2,282 2,164 2,103 2,241 2,186 2,012 Adjustment for additional derivatives netting (508) (503) (821) (782) (688) (782) (741) (706) Adjustment for additio
Slide 51: Invested assets and net new money
Invested assets and net new money In EUR bn Regional invested assets – AWM / PBC 31 Dec 2012 31 Dec 2012 31 Dec 2011 31 Mar 2012 30 Jun 2012 30 Sep 2012 31 Dec 2012 vs. vs. 30 Sep 2012 30 Dec 2011 Americas_Region 284 277 285 287 277 (3)% (2)% Asia Pacific 54 54 56 58 59 3% 10% EMEA excl. Germany 110
Slide 52: Value-at-Risk
Value-at-Risk DB Group, 99%, 1 day, in EUR m Average VaR Constant VaR(1) EUR 1.8 bn Sales & Trading revenues EUR 1.9 bn 120 100 80 60 40 20 57 55 57 56 60 30 30 30 30 33 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 (1) Constant VaR is an approximation of how the VaR would have developed in case the impact of
Slide 53: 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