Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Investor Presentation (May 2014)
43 slides from Deutsche Bank's investor presentation, May 19, 2014
Slide 1: Update on capital and Strategy 2015+
FREE WRITING PROSPECTUS Filed pursuant to Rule 433 Registration Statement No. 333-184193 Refiled to correct typographical error on slide 24, in 2013 adjusted CIR, and to add full-year 2013 reconciliation on slide 37 Update on capital and Strategy 2015+ Frankfurt, 19 May 2014
Slide 2: Reconfirming our vision based on the unique positioning of our model
Reconfirming our vision based on the unique positioning of our model DB uniquely positioned to Reconfirming our vision deliver on this vision We aspire to be the leading Deep financing and capital client-centric global universal bank markets expertise We serve shareholders best by putting our client
Slide 3: Taking stock
Taking stock Since June 2012: Delivering strongly against Strategy 2015+... ...despite a number of changes in our operating environment Well on track – EUR 2.3 bn cost Improved Cost European peers retrenching savings, on lower competitive from parts of IB business CtA dynamics Delivering strong Comp
Slide 4: Today's measures
Today’s measures Investing in Building capital strength Enhancing competitiveness client franchises 1 Focused investment to EUR ~8 bn capital increase Reshape CB&S to decisively addressing sustainably deliver returns strengthen US client known challenges to our above cost of capital franchise capita
Slide 5: Details of capital measures
Details of capital measures Key terms of the offering Impact on pro-forma CRD4 1Q14 ratios Gross EUR ~8 bn (1) (committed) proceeds Fully loaded: 11.8% CET1 up from 9.5% Anchor investor commitment of Ex-rights ratio Phase-in: 15.3% EUR 1.75 bn (~60 m new shares issue placed at EUR 29.20 (2)) up from
Slide 6: Timeline of key events
Timeline of key events Rights issue AT1 issue Investor communication events Subscription period 18 May Today 22 May 27 May 4 June 5 June 6 June 24 June 27 June Public Pricing of Expected Expected Expected announcement AT1 issue(1) settlement prospectus closing & of AT1 issue(1) publication settlemen
Slide 7: Comprehensively strengthening capital and leverage ratios for the longer-term
Comprehensively strengthening capital and leverage ratios for the longer-term CET1 capital Leverage ratio Build capital strength CRD4 capital ratio, in % CRD4 leverage ratio, fully loaded, in % Phase-in Fully loaded Adjusted ratio(4) Aspiration 3.2 3.8 YE15 3.5 ~3.5 15.3 Address known Capital 3.1 0.
Slide 8: We remain committed to deliver against our ambition
We remain committed to deliver against our ambition – despite a more adverse medium-term environment Our updated Group aspirations Our assumptions Capital >10% CET1 ratio(1) Implementation of regulatory frameworks Leverage (e.g., CRD4, EBA ~3.5% by end of 2015 guidance) based on ratio(1) our underst
Slide 9: Agenda
Agenda 1 The journey so far 2 Today’s measures 3 Update on our aspirations Deutsche Bank Frankfurt, 19 May 2014 financial transparency. 8 Investor Relations
Slide 10: Costs: Our reduction plan is on track
Costs: Our reduction plan is on track We are successfully reducing costs... …within planned CtA... …and generating strong savings Cost base, reported, in EUR bn Cumulative CtA, in EUR bn Cumulative savings, in EUR bn Adjusted (1) 31.2 2.3 28.4 1Q14 0.3 1Q14 2.1 0.3 1Q14 1Q14 FY13 2.3 2.1 FY13 24.7 2
Slide 11: Competencies: Generating strong operating results
Competencies: Generating strong operating results… Adjusted IBIT (1), Core Bank (2), all numbers including Consolidation & Adjustments, in EUR bn Strategy Growth & Expansion Crisis Recalibration 2015+ 8.4 8.3 8.3 8.5 7.8 7.6 6.5 4.8 5.2 2.6 (5.6) FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 (3)
Slide 12: Competencies: across all businesses despite adversity
Competencies: ...across all businesses despite adversity Adjusted IBIT(1), Consolidation & Adjustments not shown, in EUR bn CB&S PBC GTB DeAWM 4.9 4.8 2.0 2.1 1.6 1.3 1.1 1.2 0.6 0.6 0.4 0.2 FY12 FY13 1Q14 FY12 FY13 1Q14 FY12 FY13 1Q14 FY12 FY13 1Q14 Top 3 position in 39 Largest private retail Stron
Slide 13: Clients: Placing our clients at the core of our organization
Clients: Placing our clients at the core of our organization Key initiatives to embed client-centricity in our organization... ...are bearing fruit Intensified local coverage, for example Serving ~900,000 German “Mittelstand” Alignment our investments into GTB/CB&S clients via our global network of
Slide 14: Clients: Distinctive capabilities in Asia
Clients: Distinctive capabilities in Asia A strong franchise in Asia… …supporting clients with financing & advisory services DB Asia (ex. Japan) market share and rank (1) Selected Asia examples EUR1 bn IPO: biggest food and Flow credit 30% #1 beverage deal ever in Asia FX 16% #2 USD 2.5 bn bond issu
Slide 15: Culture: Broad culture change program irreversibly initiated
Culture: Broad culture change program irreversibly initiated Then Now Education/ Broad training program, Non-completion impacts pay training focus reminders for non- and promotion on compliance completion Deferral: 3 years max; Deferral: 5 years max; Compensation limited clawbacks strengthened clawb
Slide 16: Capital: Substantial capital ratio accretion since 2012
Capital: Substantial capital ratio accretion since 2012 >350 bps of CET1 capital ratio accretion since 1H 2012 Strong progress on reducing leverage CET1 ratio, fully loaded(1), in % CRD4 leverage ratio, adjusted(3), in % 1H 2012 – 1H 2013: 2H 2013 – today: Leverage exposure, in EUR trn Disciplined b
Slide 17: Agenda
Agenda 1 The journey so far 2 Today’s measures 3 Update on our aspirations Deutsche Bank Frankfurt, 19 May 2014 financial transparency. 16 Investor Relations
Slide 18: Update on Strategy 2015+: Key measures
Update on Strategy 2015+: Key measures Enhancing competitiveness A Building capital D Investing in client strength Re-shaping our franchises B C Cost discipline markets platform Strengthen core Remain firmly Achieve CIR of ~65% capital ratios with committed to global (adjusted)(1) in 2015 by D1 Inve
Slide 19: We are decisively addressing market concerns on our capital ratios
A We are decisively addressing market concerns on our capital ratios and building a prudent buffer in 2014 In EUR bn CET1 ratio, CRD4 fully CET1 capital ambition 2014 RWA ambition 2014 loaded 11.8% ~380-395 ~45 Up to 373 1 (1.5-2) 43 ~20-30 ~(10-15) 8 9.5% 35 1Q14 De- Planned 4Q14 1Q14 Pro- Gross 1Q
Slide 20: Our industry continues to face structural challenges and unfavorable market dynamics
B Our industry continues to face structural challenges and unfavorable market dynamics, especially for fixed income Regulatory challenges Economic / cyclical challenges Basel 3 framework In % ECB refi rate Fed rate BoE Bank rate Persistent 6 Leverage ratio low interest 4 requirements rate Capital 2
Slide 21: Long-term client demand for fixed income products remains fundamentally attractive
B Long-term client demand for fixed income products remains fundamentally attractive, particularly in Europe… Issuer-side outlook Investor demand Robust outlook for fixed income for credit products for fixed return securities >80% growth in global credit demand Pension funds shifting to fixed throug
Slide 22: …while industry supply is retrenching, especially in Europe
B …while industry supply is retrenching, especially in Europe Debt S&T revenues by Top 10 players 2013 revenues, EUR bn Peers significantly downsizing (1) Rest of market ~30% Only 5-6 global Top 10 banks FIC players left ~70% Barriers to (re)entry make it increasingly 7.0 difficult for lower ranked
Slide 23: Since June 2012, we have significantly realigned resource consumption
Since June 2012, we have significantly realigned resource consumption within our franchise Significant recalibration delivered…. ….while realigning resource usage CB&S % reduction FY13 vs. FY11 Equities complex optimized (23)% Adjusted assets Capital, balance sheet & headcount reduced Front-to-back
Slide 24: Re-shaping our CB&S franchise to capture returns above cost of capital
B Re-shaping our CB&S franchise to capture returns above cost of capital 2013 revenues (green – low CIR (adjusted(1)), amber – medium to high) High Commercial CB&S well Global Liquidity Credit Real Estate positioned today in Management Solutions high RoE / low CIR businesses Strategic emphasis FX Le
Slide 25: Strategy predicated on efficiency – committed to deliver Operational Excellence objectives
C Strategy predicated on efficiency – committed to deliver Operational Excellence objectives… We confirm our commitment to fully deliver OpEx targets… ...to support delivery of our ~65% CIR ambition Cumulative from 2Q12, in EUR bn CIR, reported Adjusted (1) 89% ~4.5 ~65%(2) Savings 2.3 73% CtA (2.1)
Slide 26: Absorbing the costs of incremental investment in regulatory compliance
C ... by absorbing the costs of incremental investment in regulatory compliance through management action Delivery / Ambition vs. original cost base Adjusted cost base (1) In EUR bn 25.1 23.1 (1.1) 0.7-0.9 (1.2) Additional regulatory and controls costs, some of a one-off nature, include e.g. Establi
Slide 27: Continued de-risking of NCOU legacy assets
C Continued de-risking of NCOU legacy assets Sale of the Cosmopolitan of Las Vegas… …capital accretive for Deutsche Bank DB has agreed to sell 100% of Nevada Property 1 LLC, the owner of The Cosmopolitan of Las Vegas Purchase price of USD 1.73 bn(1) to Blackstone Real Estate Partners VII Sale of the
Slide 28: Launching focused investments aligned to key client opportunities
D Launching focused investments aligned to key client opportunities across our franchise Implied client Key developments affecting our core client segments priorities for DB Resurgence Strong macroeconomic growth of economic US corporates & growth in the Resurgence of corporate investment activity a
Slide 29: Accelerating focused growth strategy in US market
Accelerating focused growth strategy in US market Our response: The opportunity: grow US franchise profitability Invest in profitable businesses CB&S position by key product(1), FY13 Top 3 Top 5 Outside top 5 LDCM US Europe APAC Global Commercial Real Financing Estate EM Debt FX Rates Credit Solutio
Slide 30: D2 Digital transformation of our retail model in Europe
D2 Digital transformation of our retail model in Europe The opportunity: Our response: Disruptive financial technology Building on today‘s strengths to launch a digital investment program Evolution of electronic trading (past decade) Invest in new, >4x alternative channels Channel to enhance client
Slide 31: D3 Investment in multinational corporations (MNC) coverage
D3 Investment in multinational corporations (MNC) coverage The opportunity: Our response: Targeting key multinational corporations Reinvigorating principles of Project Integra DB strong DB underweight vs. Targeted investment franchise market opportunity opportunities Continue to align cross- divisio
Slide 32: D4 Investment in capturing HNWI market share opportunities
D4 Investment in capturing HNWI market share opportunities The opportunity: Our response: Focused investments in High client demand within EMs and HNWI segment wealth management Absolute private wealth by region, in EUR trn 129 Increase number of HNWI 102 Coverage relationship managers in Asia, Emer
Slide 33: Agenda
Agenda 1 The journey so far 2 Today’s measures 3 Update on our aspirations Deutsche Bank Frankfurt, 19 May 2014 financial transparency. 32 Investor Relations
Slide 34: Strategy 2015+: Update on our aspirations
Strategy 2015+: Update on our aspirations 2015 ambition for our core Our updated Group aspirations businesses Capital >10% CET1 ratio(1) Adjusted post-tax CB&S RoE 13%-15% (4,5) Leverage ~3.5% by end of 2015 ratio(1) Reported IBIT PBC Savings(2) EUR 4.5bn by end of 2015 EUR 2.5-3.0 bn Costs CIR ~65%
Slide 35: Deutsche Bank firmly set to further deliver on its strategy
Deutsche Bank firmly set to further deliver on its strategy Deutsche Bank is committed to its vision of aspiring to be the leading client-centric global universal bank – especially as competitors increasingly retrench Today we are decisively strengthening Capital, Competitiveness, and Client growth
Slide 36: Appendix
Appendix 35
Slide 37: Reconciliation of reported to adjusted IBIT (non-GAAP) – 1Q2014
Reconciliation of reported to adjusted IBIT (non-GAAP) – 1Q2014 1Q2014 CVA/DVA/ (1) In EUR m IBIT reported CtA Litigation Other IBIT adjusted FVA (2) CB&S 1,492 (111) 18 7 (12) 1,588 PBC 520 (107) (0) 0 (4) 631 GTB 367 (19) 2 0 (1) 385 DeAWM 169 (56) (13) 0 (4) 241 C&A (336) (5) (1) (94) (7) (228) C
Slide 38: Reconciliation of reported to adjusted cost base (non-GAAP)
Reconciliation of reported to adjusted cost base (non-GAAP) – 1Q2013 through 1Q2014 Non-Compensation 28.4 Compensation and benefits 6.9 7.2 7.6 16.1 6.6 6.5 3.1 3.7 4.3 4.9 3.1 3.5 12.3 3.2 2.9 2.7 3.3 1Q 2Q 3Q 4Q FY 1Q 2013 2013 2014 Adj. cost base 6,034 5,910 5,600 5,604 23,147 5,992 (in EUR m) ex
Slide 39: Reconciliations of reported to adjusted financial measures – FY 2013
Reconciliations of reported to adjusted financial measures (non-GAAP) – FY 2013 CB&S GTB DeAWM PBC C&A Core NCOU Group )es iwrehto detats ton fi( m RUE nI Bank Revenues (reported) 13,526 4,069 4,735 9,550 (929) 30,951 964 31,915 1 203 0 0 0 276 479 171 650 AVF / A VD / AVC Revenues (adjusted) 13,729
Slide 40: Reconciliations of reported to adjusted financial measures – FY 2012
Reconciliations of reported to adjusted financial measures (non-GAAP) – FY 2012 CB&S GTB DeAWM PBC C&A Core NCOU Group )es iwrehto detats ton fi( m RUE nI Bank Revenues (reported) 15,073 4,200 4,472 9,540 (975) 32,309 1,427 33,736 1 (350) 0 0 0 0 (350) 0 (350) AVF / A VD / AVC Revenues (adjusted) 14
Slide 41: Reconciliations of reported to adjusted IBIT (non-GAAP)
Investor Relations 40 financial transparency. Frankfurt, 19 May 2014 Deutsche Bank )PAAG .S.U( selpicnirP gnitnuoccA detpeccA lareneG .S.U no desaB 4 5,087 291 4,796 -291 1,031 552 297 3,207 IBIT adjusted 0 0 0 0 0 0 0 0 stessa elbignatni rehto dna lliwdoog fo tnemriapmI 376 101 275 0 0 0 0 275 n oi
Slide 42: 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
Slide 43: Legal Notices
Legal Notices European Economic Area This document does not constitute an offer to sell, or the solicitation of an offer to buy or subscribe for, any securities, and cannot be relied on for any investment contract or decision. This document does not constitute a prospectus within the meaning of the