Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Investor Day (September 2012)
46 slides from Deutsche Bank's investor day presentation, Sep 11, 2012
Slide 1: Deutsche Bank: Winning in a changed environment
Deutsche Bank Deutsche Bank: Winning in a changed environment Jürgen Fitschen and Anshu Jain, Co-Chairmen of the Management Board and the Group Executive Committee Investor Day, y, Frankfurt,, 11 September p 2012 Deutsche Bank Jürgen Fitschen, Anshu Jain financial transparency. Investor Relations In
Slide 2: Agenda
Agenda 1 p g environment Operating 2 Vision 3 Strategy 2015+: Recalibrating the Bank 4 Capital and operational excellence 5 Cultural change 6 Summary Deutsche Bank Jürgen Fitschen, Anshu Jain financial transparency. 1 Investor Relations Investor Day, Frankfurt, 11 September 2012
Slide 3: We face a challenging medium-term environment
We face a challenging medium-term environment Low growth; further potential for shocks Macroeconomic Continued dependence on policy stimulus challenges Significant, prolonged deleveraging ahead Changing global demographics Megatrends drive significant Urbanization and financial deepening in emerging
Slide 4: Near-term challenges, longer-term opportunities
Near-term challenges, longer-term opportunities Macro-economic challenges: Examples Longer-term mega trends: Examples GDP growth, in % Retired workforce (aged >60), in % Ø 2004-11 7.0 5.6 56 47 31 Ø 2012-15e 32 16 Lower 2.6 Aging global 1.4 1.1 1.2 0.5 1.5 population growth 2011 2050 2011 2050 EM De
Slide 5: Reputational and regulatory challenges
Reputational and regulatory challenges Lack of trust in the banking sector Further restrictive regulatory changes Percentage of survey respondents who place trust in given industry, 2012(1) Basell 3 B — Compressed 79 Capital, leverage and profitability: funding Reduced 66 64 margins and 62 Restricti
Slide 6: In this environment, the banking industry shrinks …
In this environment, the banking industry shrinks … Has shrunk in previous crises … … and is shrinking now Number of commercial Share of total assets Number of banks by yggeography g y banks in the US held by second tier banks in Japan(1) EU 15 60% ~ 20,000 (33)% (34)% ~(20)ppt 10,924 ~(50)% 10,043
Slide 7: … and winners emerge
… and winners emerge Global integrated firms survive … … and capture increased share of business March 2008 Todayy % of business accruing g to the top p 5 firms Pre-financial crisis 51 Post-financial crisis 44 40 36 12 13 (1) Investment Asset & Wealth Transaction banking(2) Management(3) banking(4)
Slide 8: Clients will define future winners
Clients will define future winners Increasingly complex client needs … … define attributes of future winners 24/7 access to liquidity globally World-class financial strength Prudent risk management Sustainable funding Access to worldwide markets Asset gathering capability Payments / flow of funds Su
Slide 9: Agenda
Agenda 1 p g environment Operating 2 Vision 3 Strategy 2015+: Recalibrating the Bank 4 Capital and operational excellence 5 Cultural change 6 Summary Deutsche Bank Jürgen Fitschen, Anshu Jain financial transparency. 8 Investor Relations Investor Day, Frankfurt, 11 September 2012
Slide 10: What is Deutsche Bank's starting point?
What is Deutsche Bank’s starting point? Unique strengths … … and identified weaknesses Deep roots in Europe’s strongest Long-term underperformance of some economy and long presence in EM businesses Unique brand, IB franchise and undisputed home market leader Historical Hi t i l llack k off e
Slide 11: Our vision
Our vision We aspire to be the leading client-centric global universal bank We commit to a culture We serve shareholders that aligns risks and best by putting our rewards; attracts and clients first and by We value our German develops talented building a global roots and remain individuals; fosters
Slide 12: To deliver our vision, we will utilize five key levers
To deliver our vision, we will utilize five key levers Focused portfolio of clients and regions 1 Clients based on our ability to generate value Businesses built on the best people, best 2 Competencies processes and world world-class class products Strong capital base and rigorous risk- 3 Capital ad
Slide 13: Agenda
Agenda 1 p g environment Operating 2 Vision 3 Strategy 2015+: Recalibrating the Bank 4 Capital and operational excellence 5 Cultural change 6 Summary Deutsche Bank Jürgen Fitschen, Anshu Jain financial transparency. 12 Investor Relations Investor Day, Frankfurt, 11 September 2012
Slide 14: Of the many priorities, three are key
Of the many priorities, three are key Aspiration A i ti FY2011 2015 Key assumptions Fully — Normalization/stabilization of loaded B3 asset valuations <6%(1) >10% Core Tier 1 — Revenue growth in line with ratio market — No major changes to current Cost regulatory frameworks on Income 78% <65% capital
Slide 15: We will deliver our strategy through a clearly defined business model
We will deliver our strategy through a clearly defined business model Deutsche Bank Regional Management Private & Corporate Asset & Global Non-Core Business Banking & Wealth Transaction Clients Securities Management Banking Operations Infrastructure Deutsche Bank Jürgen Fitschen, Anshu Jain financia
Slide 16: We plan to grow our geographic footprint in Germany, the Americas and Asia Pacific
We plan to grow our geographic footprint in Germany, the Americas and Asia Pacific Indicative IBIT CAGR aspiration 2011-2015 (1) >20% 10-20% ≤0% — Build on existing strong platform as bank of choice Germany — Increase loan volume by at least EUR 10 bn by 2015 — Streamline resource consumption in lin
Slide 17: We will optimize delivery to clients
We will optimize delivery to clients Our clients today How we will enhance delivery going forward Indicative split of 2011 client revenues Examples 100% Retail clients German Mid-Caps: Renewed approach pp to combine world-class products with enhanced local coverage Wealthy individuals SMEs UHNWI cov
Slide 18: We will allocate assets dynamically across our portfolio
We will allocate assets dynamically across our portfolio Key principles Operating portfolio implications: Does the business ... — DB will emphasize and ...meet ...align g well ILLUSTRATIVE ...add add value ...contribute contribute invest in businesses which performance to trends/ for clients? to bal
Slide 19: Dynamic asset allocation at work – selected examples
Dynamic asset allocation at work – selected examples PBC CB&S AWM GTB — Postbank customer — FX — AM European retail — Trade Finance bank — Emerging markets — Passive Alternatives Passive, — CMC/CMFI Invest — Advisory banking — Platforms — UHNWI — TSS Germany — Asia — Emerging Markets — PBC Europe —
Slide 20: Private & Business Clients: Building a powerhouse while improving efficiency
Private & Business Clients Building a powerhouse while improving efficiency Where we aspire How we will get there: Where we are today to be in 2015 The journey Focus ocus o on de delivering e g Postbank ostba Challenging environment b siness(1) PBC operating business — Product standardization (low i
Slide 21: Corporate Banking & Securities: Retaining our leading position while recalibrating
Corporate Banking & Securities Retaining our leading position while recalibrating Where we aspire How we will get there: Where we are today to be in 2015 The journey — More top-3 positions than CB&S operating business(2) Focus th IB(1) any other — Re-evaluate Re evaluate CB&S portfolio to — A truly
Slide 22: Corporate Banking & Securities: Increasing efficiency
Corporate Banking & Securities Increasing efficiency Priorities Major cost measures Cost impact aspiration, in EUR bn 2012 savings (implemented) — Announced A d 900 front f t office ffi headcount h d t reduction; d ti f focus on Achieve leading Equities/Corporate Finance in EU/APAC 0.4 position in c
Slide 23: Asset & Wealth Management
Asset & Wealth Management We aspire to double profitability through integration and efficiency Where we aspire Where we are today How we will get there: The journey to be in 2015 AWM operating Three solid pillars Realize potential of business(1) — Private Wealth Management underperforming businesses
Slide 24: Global Transaction Banking
Global Transaction Banking We aspire to double profitability by investing in growth Where we aspire Where we are today How we will get there: The journey to be in 2015 GTB operating Grow Trade Finance & Cash Management Growth business across the cycle cycle, b siness(1) business resilient to externa
Slide 25: We will rebalance our business portfolio
We will rebalance our business portfolio Key levers to 2015 Revenue B3 RWA Post-tax RoE Costs CIR 2015 aspirations growth equivalent(1) in 2015 PBC ~ (4) CB&S ~ (4) AWM ~ GTB ~ Operating businesses(2) >15%((3)) In line with EUR 4.5 bn CT1 ratio Post-tax RoE Group <65% market savings >10% >12%(3) (1)
Slide 26: While recalibrating, we still see significant areas of growth and will invest in them
While recalibrating, we still see significant areas of growth and will invest in them Complex client needs How we are helping our clients and driving growth — Trade facilitation Transaction — Helping mmulti-national lti national clients with ith ssupply ppl — Access to worldwide banking in chain and
Slide 27: Agenda
Agenda 1 p g environment Operating 2 Vision 3 Strategy 2015+: Recalibrating the Bank 4 Capital and operational excellence 5 Cultural change 6 Summary Deutsche Bank Jürgen Fitschen, Anshu Jain financial transparency. 26 Investor Relations Investor Day, Frankfurt, 11 September 2012
Slide 28: We will realize our capital goals organically
We will realize our capital goals organically B3 RWA equivalent((2)) Core Tier 1 goals Capital tool box relief, in EUR bn Basel 3 Core Tier 1 ratio, fully loaded June Reduction Included in capital plan 2012 2Q 12 –1Q 13 Non Core Operations Non-Core ~135 ~45 10.2%(1) >10% Available Portfolio optimiza
Slide 29: We will establish a Non-Core Operations unit ...
We will establish a Non-Core Operations unit ... Pro-forma B3 RWA equivalent(1), 30 Jun 2012, Rationale Scope in EUR bn Clear criteria used for identifying assets / liabilities in scope Accelerate de- risking — Trading: securitization portfolio — Assets in run-off: CB&S monoline, legally and CB&S ~1
Slide 30: ... with dedicated governance
... with dedicated governance Governance model Non-Core Operations de-risking aspiration RWA equivalent(1), in EUR bn — De-risking and capital formation interests aligned between operating and Non-Core ~(45) businesses ~135 — Centralized coordination of Non-Core 110 105 Operations with Management Bo
Slide 31: We will further strengthen our risk discipline
We will further strengthen our risk discipline Strong risk St i k discipline di i li th throughout h t volatile l til Commitment C it t to t continued ti d iinvestment t t in i crisis period risk management P&L vs. market volatility — Clear expectations of staff and In EUR m Sales S l &T Trading di
Slide 32: Operational excellence – we aim to save EUR 4.5 bn annually …
Operational excellence – we aim to save EUR 4.5 bn annually … Business savings aspiration Infrastructure savings aspiration 2015 yearly run-rate savings(1), in EUR bn 2015 yearly run-rate savings(1), in EUR bn CB&S 1.1 Global Gl b l Technology 0.7 GTB 0.2 Global Business 0.4 S i Services AWM 0.4 Oth
Slide 33: … through a one-off investment of EUR ~4 bn
… through a one-off investment of EUR ~4 bn Our aspiration 2015 Structural levers Examples In EUR bn Savings(3) — Magellan platform Postbank CtA IT platform — Invest in world class 0.8 renewal — Golden source for data already announced technology platform reference 4.5 — More effective — Reduce from
Slide 34: In summary: Quantifying our aspiration
In summary: Quantifying our aspiration Deutsche Bank aspiration Divisional aspiration 2015(5) Cost savings of EUR 4.5 bn — IBIT: ~EUR 3.0 bn PBC Accelerated de-risking of Non-Core Operations — CIR: ~60% Aspiration FY 2011 2015 — CIR: <65% Fully F ll lloaded d d — RWA equivalent((6)): CB&S B3 Core Ti
Slide 35: Positioned to capture longer-term opportunities
Positioned to capture longer-term opportunities 2015+ Now – 2015 Readyy and able to capitalize p on future optionality p y Clear actions to position ourselves to win Long-term trends Future opportunity? Changed — A leading g 1 Strengthen our unique global platform competitive European and home mar
Slide 36: Agenda
Agenda 1 p g environment Operating 2 Vision 3 Strategy 2015+: Recalibrating the Bank 4 Capital and operational excellence 5 Cultural change 6 Summary Deutsche Bank Jürgen Fitschen, Anshu Jain financial transparency. 35 Investor Relations Investor Day, Frankfurt, 11 September 2012
Slide 37: We acknowledge the need for cultural change
We acknowledge the need for cultural change We are proud of the culture we have built Attributes we will emphasize — Meritocracy — Execution and results Performance oriented Long-term orientation and sustainability culture — Crisis mobilization — Risk culture — Speed and agility Entre- — Empowerment
Slide 38: We will be at the forefront of our industry's cultural change
We will be at the forefront of our industry’s cultural change Our commitments Our key actions — Increase time horizon for bonus payouts to senior management We will lead the — Extend equity vesting period from 3 to 5 years industry on — Remove interim payment on deferred bonuses; Realigning realigni
Slide 39: We have already addressed many compensation issues
We have already addressed many compensation issues Variable comp(1) as % of net revenues has declined Compensation practices have improved 22% 20% Stricter governance 19% 17% Early adoption of regulatory requirements 15% 11% Better alignment to long-term performance Strong behavioral focus Increased
Slide 40: Leading the industry – an independent panel on compensation governance
Leading the industry – an independent panel on compensation governance Panel composition … ... and objectives — Independent external panel of senior and — Benchmark our compensation systems highly g y credible pprofessionals from outside against g industryy best p practice and the financial services
Slide 41: Agenda
Agenda g 1 p g environment Operating 2 Vision 3 Strategy 2015+: Recalibrating the Bank 4 Capital and operational excellence 5 Cultural change 6 Summary Deutsche Bank Jürgen Fitschen, Anshu Jain financial transparency. 40 Investor Relations Investor Day, Frankfurt, 11 September 2012
Slide 42: Introducing our new management team
Introducing our new management team Members of the Management Board and the Group Executive Committee Jürgen Fitschen Anshu Jain Co-Chairman of the Co-Chairman of the Management Board and GEC Management Board and GEC Stephan Leithner CEO Europe (ex DE/UK), HR, Rainer Neske Stefan Krause Legal & Comp
Slide 43: Presenters for Wednesday, 12 September
Presenters for Wednesday, 12 September Schedule Presenter — Stefan Krause, CFO — Henry Ritchotte, COO Morning — Stuart Lewis, CRO — Stephan Leithner, CEO Europe (ex DE/UK), HR, Legal & Compliance, Gov. & Reg. Affairs — Colin Fan / Robert Rankin, CB&S — Werner Steinmüller, GTB Aft Afternoon — Michele
Slide 44: Appendix
Deutsche Bank Appendix pp Deutsche Bank Jürgen Fitschen, Anshu Jain financial transparency. Investor Relations Investor Day, Frankfurt, 11 September 2012
Slide 45: Reconciliation of key financials shown in presentations
Reconciliation of keyy financials shown in presentations p 2011 SPLIT OPERATING vs. NON-CORE INDICATIVE Re-segmentation Non-Core Operating (1) As reported Operations Other businesses Cost/income ratio 78% (6)ppt (1)ppt 71% RWA (in EUR bn) 229 (52) (3) 173 (2) CB&S Memo: RWA equivalent (in EUR bn) 25
Slide 46: Cautionary statements
Cautionary statements This presentation contains forward-looking statements. Forward-looking statements are statements that are not historical facts;; they y include statements about our beliefs and expectations p and the assumptions p underlying y g them. These statements are based on plans, estima