Deutsche Bank AG · XETR:DBK
Deutsche Bank — Debt Investor Presentation (September 2014)
35 slides from Deutsche Bank's debt investor presentation, Sep 2, 2014
Slide 1: Fixed income roadshow Japan
Deutsche Bank Deutsche Bank Fixed income roadshow Japan Jonathan Blake, Global Head of Debt Issuance Bernt Gade, Investor Relations Tokyo / Osaka, 2-5 September 2014
Slide 2: Deutsche Bank at a glance
Deutsche Bank at a glance FY2013 Key facts Revenues per region(1) Revenues by business(2) Revenues 31.9 in EUR bn Employees ~98,000 Asia/Pacific GTB 12% 13% DeAWM Retail customers 15% ~28.0 Germany in m Americas CB&S 36% 24% 43% Number of ~2,900 PBC branches EMEA(3) 30% 31% Invested assets 1,205 in
Slide 3: Agenda
Agenda 1 Strategy update 2 Results update 3 Liquidity and funding Deutsche Bank Fixed income roadshow Japan 2014 financial transparency. 3 Treasury / Investor Relations
Slide 4: Update on Strategy 2015+: Key measures
Update on Strategy 2015+: Key measures Enhancing competitiveness Building capital Investing in client strength Re-shaping our franchises Cost discipline markets platform — Strengthened core — Remain firmly — Achieve CIR of ~65% capital ratios with committed to global (adjusted)(1) in 2015 by — Inves
Slide 5: We continue to be a global universal bank, but the business mix has become more balanced
We continue to be a global universal bank, but the business mix has become more balanced Core bank revenue development Core Bank adjusted IBIT(1) FY2013 vs. FY2006 reported revenues FY2006 vs. FY2013 CB&S (18)% DeAWM 12% 13% GTB 9% 14% 13% PBC PBC 85% 23% CB&S 67% GTB 83% 51% 2006 2013 DeAWM 14% (1)
Slide 6: Costs: We continue to work on efficiency
Costs: We continue to work on efficiency We continue to work towards our OpEx targets … ... to support delivery of our ~65% CIR ambition Cumulative from 2Q2012, in EUR bn CIR, reported Adjusted(1) 89% ~4.5 ~65%(2) Savings 2.6 73% CtA (2.4) ~65% ~(4.0) Achieved by 2015 2013 2014 2015 2016 1H2014 Ambi
Slide 7: Strategic investments in client franchises will drive our business growth
Strategic investments in client franchises will drive our business growth Adjusted IBIT, in EUR bn Adjusted IBIT Group(1) Adjusted IBIT Core Bank(1,2) 5 1 Invest in our US client franchise and deploy required resources to grow profitable 4 businesses 8.5 1 2 2 Selected investments to strengthen
Slide 8: Strategy 2015+: Update on our aspirations
Strategy 2015+: Update on our aspirations 2015 ambition for our Our updated Group aspirations core businesses Capital — >10% CET1 ratio(1) — Adjusted post- CB&S tax RoE 13%- 15%(4,5) Leverage — ~3.5% by end of 2015 ratio(1) — Reported IBIT PBC Savings(2) — EUR 4.5 bn by end of 2015 EUR 2.5-3.0 bn Co
Slide 9: Agenda
Agenda 1 Strategy update 2 Results update 3 Liquidity and funding Deutsche Bank Fixed income roadshow Japan 2014 financial transparency. 9 Treasury / Investor Relations
Slide 10: 2Q2014 results: Key Group financial highlights
2Q2014 results: Key Group financial highlights In EUR bn, unless otherwise stated Group Core Bank(1) 2Q2014 2Q2013 2Q2014 2Q2013 Income before income taxes 0.9 0.8 1.5 1.5 Net income 0.2 0.3 n.a. n.a. Diluted EPS (in EUR) 0.21 0.31 n.a. n.a. Profitability Post-tax return on average active equity(2)
Slide 11: Stable underlying performance despite significant de-risking
Stable underlying performance despite significant de-risking Core Bank(1) adjusted IBIT(2), in EUR bn Growth & Expansion Crisis Recalibration Strategy 2015+ 8.4 8.3 8.3 8.5 7.8 7.6 6.5 4.8 5.2 5.0 (5.6) 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013(3) 1H2014(3) Note: Adjusted figures shown based
Slide 12: 1H2014 underlying profit
1H2014 underlying profit Group adjusted IBIT and ROE, in EUR bn Post-tax RoE (%) Pro-forma post-tax RoE (%)(1) 4.7 13.4 0.7 0.2 5.0 0.4 1.1 3.7 2.6 1H2014 Group NCOU Core Bank Litigation/ Investing in CVA / DVA / 1H2014 reported IBIT reported IBIT impair- our platform(3) FVA(4) Core Bank ments(2) ad
Slide 13: Good business contributions
Good business contributions Reported IBIT, in EUR bn CB&S PBC GTB DeAWM 3.2 2.9 2.4 1.6 1.5 1.1 0.9 0.7 0.6 0.8 0.4 0.2 FY12 FY13 1H14 FY12 FY13 1H14 FY12 FY13 1H14 FY12 FY13 1H14 2Q2014 revenue development — Revenues in-line y-o-y, — Significantly improved — Solid revenue — Revenues strengthened de
Slide 14: NCOU: Pre-tax profit and de-risking progress
NCOU: Pre-tax profit and de-risking progress Income before income taxes Size of Non-Core Operations Unit In EUR m Total adjusted assets, in EUR bn (65)% 132 (258) 61 46 (532) (580) (672) Jun 2012 Dec 2013 Jun 2014 (1,199) RWA (CRD4), fully loaded, in EUR bn (1,272) (60)% 142 1Q 2Q 3Q 4Q 1Q 2Q 2013 2
Slide 15: Capital: CET 1 ratio strengthened, yet further headwinds expected
Capital: CET 1 ratio strengthened, yet further headwinds expected CET 1 ratio Outlook CRD4 Common Equity Tier 1 ratio, fully-loaded, in % Further headwinds expected from: 9.5 2.5 12.0 11.5 ― EBA Regulatory Technical Standards, (0.5) e.g. Prudent Valuation: Potential EUR 1.5 – 2.0 bn capital impact I
Slide 16: Litigation update
Litigation update In EUR bn Mortgage repurchase Litigation reserves Contingent liabilities demands/reserves In USD Demands Reserves 3.2 2.2 5.0 4.6 1.8 2.0 0.6 0.5 31 Mar 2014 30 Jun 2014 31 Mar 2014 30 Jun 2014 31 Mar 2014 30 Jun 2014 — Net litigation reserves were up — This includes possible oblig
Slide 17: Agenda
Agenda 1 Strategy update 2 Results update 3 Liquidity and funding Deutsche Bank Fixed income roadshow Japan 2014 financial transparency. 17 Treasury / Investor Relations
Slide 18: Funding mix significantly improved towards more stable funding
Funding mix significantly improved towards more stable funding Funding well diversified Highlights 2Q2014 As of 30 June 2014 — Total funding liabilities increased to EUR 1,000 bn (vs. EUR 984 bn as of Dec 2013) Financing Vehicles 2% — 66% of total funding from most stable sources 66% from most stabl
Slide 19: Overview of capital markets portfolio
Overview of capital markets portfolio Split by entity Split by issuance type(1) As of 30 June 2014 As of 30 June 2014 Total: EUR 136 bn Total: EUR 136 bn Deutsche Bank (excl Postbank) Postbank Senior unsecured Covered UT2/LT2 Tier 1 11% 18% 5% 17% 67% 82% Complementary capital markets portfolio; Deu
Slide 20: Issuance strategy
Issuance strategy Historical funding activities 2014 funding activities In EUR bn — Total YTD issuance of EUR 30 bn vs plan of EUR 30-35 bn Senior Covered Tier 1 and Tier 2 (increased from EUR 20 bn which was completed by May) — Avg. spread of L+45 bps and avg. tenor of 4.6 years 30 — Highlights in
Slide 21: Capital markets maturity profile
Capital markets maturity profile(1) As of 30 June 2014, in EUR bn Observations Total: EUR 128 bn — Well laddered maturity profile (2) Senior Covered Tier 1 and Tier 2 25 — Maturities not more than EUR 22 bn p.a. (including Postbank) 20 2 15 — Capital issues reflected as per maturity date; 2 0 EUR 15
Slide 22: Comprehensively strengthening total capital structure
Comprehensively strengthening total capital structure Deutsche Bank capital structure Generic future capital structure Basel 3 (fully loaded) Basel 3 minimum requirements Total capital ratio: 15.7% Legacy Legacy Tier 1 / Tier 1 / Tier 2 Tier 2 Tier 1 ratio: 12.4% €3.5bn AT1 Issuance of €1.5bn AT1 by
Slide 23: Credit ratings overview
Credit ratings overview Notches downgraded since July 2007 Moody´s rating scale Aa3 A1 A2 A3 Baa1 Baa2 (long-term rating only) Fitch and S&P rating scale AA- A+ A A- BBB+ BBB Moody´s Fitch S&P (2) (2) HSBC(1) 2 1 1 (2) (2) BNP Paribas 3 2 3 (2) (2) Credit Suisse(1) 3 2 2 JPMorgan Chase(1) (2) 4 1 2
Slide 24: Additional Information
Deutsche Bank Additional Information Tokyo / Osaka, 2-5 September 2014
Slide 25: Deutsche Bank's current credit ratings profile
Deutsche Bank’s credit current ratings profile As of 30 July 2014 Pfandbrief Aaa - - Senior unsecured debt A3 A A+ Tier 2 Ba1 BBB A- Legacy Tier 1 (Basel 2.5) Ba3 BBB- BBB- Additional Tier 1 (Basel 3) Ba3 BB BB+ Outlook Negative Negative Negative Short term debt P-2 A-1 F1+ Deutsche Bank Fixed incom
Slide 26: 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 FlowCredit credit 30% #1 beverage deal ever in Asia FX 16% #2 — USD 2.5 bn
Slide 27: 1H2014: IBIT detail
1H2014: IBIT detail 1H2014 In EUR m IBIT reported CtA Litigation CVA/DVA/ FVA Other(1) IBIT adjusted CB&S 2,376 (272) (240) (106) (17) 3,012 PBC 923 (201) (0) 0 (6) 1,130 GTB 595 (51) (98) 0 (3) 748 DeAWM 374 (138) (23) 0 (5) 539 C&A (559) (4) (7) (120) (11) (417) Core Bank 3,709 (665) (369) (226) (
Slide 28: Cost: Reported and adjusted
Cost: Reported and adjusted In EUR bn 28.4 Non-Compensation 7.2 7.6 16.1 6.6 6.9 6.5 6.7 Compensation and benefits 3.1 3.7 4.3 4.9 3.1 3.7 12.3 3.5 3.2 2.9 2.7 3.3 3.0 1Q 2Q 3Q 4Q FY 1Q 2Q 2013 2013 2014 Adj. cost base 6,034 5,910 5,600 5,604 23,147 5,992 5,723 (in EUR m) excludes: Cost-to-Achieve 2
Slide 29: Absorbing the costs of incremental investment in regulatory compliance
Absorbing the costs of incremental investment in regulatory compliance through management action original cost base Delivery / Ambition vs. 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. — Establishing
Slide 30: NCOU: Portfolio overview
NCOU: Portfolio overview(1) Total adjusted assets, in EUR bn 31 Dec 2012 30 Jun 2014 AWM IAS 39 re- SCG classified AWM IAS 39 CI 1.8 assets 2.5 reclassified assets 1.1 8.0 15.4 17.0 CI 7.3 PBC: Other 4.2 Other 2.4 Other loans 7.3 loans PBC: Other 3.0 4.6 Monolines 8.0 Monolines 0.0 Credit Trading –
Slide 31: CRD4 – Balance sheet and risk weighted assets
CRD4 – Balance sheet and risk weighted assets XX RWA density incl. operational risk RWA(1) vs. balance sheet (assets adj.) XX RWA density excl. operational risk In EUR bn, as of 30 Jun 2014 ~37% 340 340 ~31% 1,084 Avg. RWA density Market Risk RWA 64 80 Non-derivative ~40% 211 64 trading assets 85 ~4
Slide 32: Loan book
Loan book In EUR bn 400 393 386 393 387 382 NCOU 43 22 21 34 32 23 33 34 DeAWM 30 31 31 32 213 213 PBC 211 211 214 213 GTB 75 77 73 76 77 72 CB&S 41 40 39 40 42 48 31 Mar 30 Jun 30 Sep 31 Dec 31 Mar 30 Jun 2013 2014 Germany excl. Financial Institutions and Public Sector: 182 182 183 183 186 185 Note
Slide 33: Impaired loans
Impaired loans(1) In EUR bn Non-Core Operations Unit Impaired loan ratio Deutsche Bank Group(3) Core Bank Impaired loan ratio Core Bank(3) Impaired loan ratio 4.5% 10.1 9.7 10.1 10.3 10.0 3.5% 9.3 3.7 3.5 3.3 3.3 3.2 3.5 2.5% 2.55% 1.82% 1.5% 6.4 6.2 6.7 6.9 6.1 6.8 0.5% 31 30 30 31 31 31 Mar Jun Se
Slide 34: Reconciliations of reported to adjusted financial measures (non-GAAP) – FY 2013
Reconciliations of reported to adjusted financial measures (non-GAAP) – FY 2013 CB&S GTB DeAWM PBC C&A Core NCOU Group In EUR m (if not stated otherwise) Bank Revenues (reported) 13,526 4,069 4,735 9,550 (929) 30,951 964 31,915 CVA / DVA / FVA1 203 0 0 0 276 479 171 650 Revenues (adjusted) 13,729 4,
Slide 35: 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
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