Deutsche Bank
Stefan Krause
Chief Financial Officer
U.S. West Coast, 14 - 15 September 2009
Agenda
1
Strength
g through
g the crisis
2
Investment banking: recalibrating a leading franchise
3
'Stable' businesses: repositioning for a changed environment
Investor Relations 09/09 · 2
Deutsche Bank a relative winner in the crisis
3Q2007- 2Q2009, reported, in EUR bn
Aggregated net income
Fair value gains/losses on own debt
11.8
1.1
(1)
95
9.5
8.1
1.0
06
0.6
(0.9)(4)
0.2
(1.9)
(2)
((2.5))
(20.8)
(24.3)
(3)
(28.2)
3.6
1.7
2.5
3.7(5)
4.1
(1) 3Q07-4Q08
3Q07 4Q08 based on diverging fiscal year (2) 3Q07-4Q07
3Q07 4Q07 net income based on diverging fiscal year; 3Q07
3Q07, 4Q07
4Q07, 3Q08 and 4Q08 FV gains/losses on own debt based on
diverging fiscal year (3) 3Q07-4Q08 (4) Reflects 1Q09-2Q09 only, no information was provided for previous periods (5) Reflects fair value gain on Mandatory Convertible Notes of
EUR 2.4 bn in 1Q08
Note: Based on FY07,1Q08-2Q09 fair value gains/losses on own debt; for peers net income reflects net income attributable to the shareholders of the
parent; converted into EUR based on average FX rate of respective reporting period
Source: Company data
Investor Relations 09/09 · 3
Capital ratios have been strengthened
11.0
10.3
9.2
9.3
10.1
10.2
78
7.8
7.5
6.8
6.9
303
305
1Q
2Q
319
3Q
7.0
7.1
308
316
4Q
1Q
2008
Tier 1 ratio, in %
Core Tier 1 ratio, in %
Note: Core Tier 1 ratio = Tier 1 capital less Hybrid Tier 1 Capital divided by RWAs
Investor Relations 09/09 · 4
Target:
~10%
295
2Q
2009
RWA, in EUR bn
Significant reduction in balance sheet leverage
In EUR bn
Leverage ratio(2)
30 June 2009
30 June 2008
1,991
38
(31%)
1,733
28
1,338
(653)
24
928
(805)
IFRS
Netting(1) U
U.S.
S GAAP
‘pro-forma’
IFRS
Netting
N
tti (1) U
U.S.
S GAAP
‘pro-forma’
30 JJun
2008
31 M
Mar
2009
(1) For 30 June 2008 incl
incl. derivatives netting of EUR 498 bn,
bn pending settlements netting of EUR 92 bn and repo netting of EUR 62 bn; for 30 June 2009 incl
incl.
derivatives netting of EUR 681 bn, pending settlements netting of EUR 113 bn and repo netting of EUR 10 bn.
(2) Total assets based on U.S. GAAP ‘pro-forma’ divided by total equity per target definition
Note: Figures may not add up due to rounding differences
Investor Relations 09/09 · 5
30 JJun
2009
Funding and Liquidity: quantity,
quantity quality and consistency
In EUR bn
Unsecured
U
secu ed funding
u d g
Capital
Cap
ta market
a et funding
u d g
New issuance, in EUR bn
511
153
30%
14%
+ 53
45
411
358
30 Jun 2007
54
479
68
30 Jun 2009
Short-term wholesale funding
Fiduciary clearing & other deposits
Fiduciary,
Note: Figures may not add up due to rounding differences
Investor Relations 09/09 · 6
Capital markets
Retail deposits
FY 2009
plan
completed
21
16
15
2005
2006
2007
2008
YTD
2009
Loan book and provisions remain low in comparison
In EUR bn
Loan book split
Provision for credit losses
As of 31 December 2008
CIB / Other
Private Clients Other*
Private Clients Mortgages
1H2009
659
20.0
509 527
491
478
16 7
16.7
358
231
12.5
271
160
4.2
CS
UBS
DB
SOC BAR
Citi
BNP JPM BoA
03
0.3
1.0
1.5
CS
UBS
DB
5.1
2.4
SOC BNP BAR JPM
* Cards business
business, consumer lending
lending, other Retail (incl.
(incl Corporate in Retail
Retail, GWM
GWM, AWM)
Note: Mapping versus competitors based on disclosed segmental splits; not completely like-for-like versus DB structure; converted into EUR based on spot/average FX
rate of respective reporting period
Source: Company data
Investor Relations 09/09 · 7
Citi
BoA
In all categories,
categories risk mitigants exist
As of 30 June 2009, in EUR bn
268
xx
2Q2009 provision for loan losses, in EUR m
Low risk ((64%))
Moderate risk ((23%))
147
156
Higher
g
risk (13%)
(
)
677
Collateralised;
Low loan to value
36
64
Substantially
hedged &
diversified
Highly
diversified
Short term / Fully
collateral d
collateral’d
t d
trade-related
l t d
Substantially
S b
i ll
Liquid
collateralised
~50%
collateral
by Gov’t
Gov’t
Substantial
securities
g’teed +
collateral
High
Additional
hard
Strong
margin
collateral hedging
underlying
business +
mitigants
asset
good
quality
diversi10
fication Substantial
collateral /
Diversified
hedging
asset
IAS 39 reclassified assets
5
pools
35
19
232
16
15
13
9
24
15
16
8
Partially
hedged
Mostly
senior
secured
7
14
Total
loan
book
PBC
mortgages
Inv grade /
German
mid-cap
GTB
PWM
Note: Figures may not add up due to rounding differences
Investor Relations 09/09 · 8
PBC
small
corps
CI
Predominantly
mortgage
secured
Diversified by asset
type and location
14
9
7
5
Structured
DB
PBC
Colla- Financing
Other
CF
CF
transaction sponsor’d consumer teralised / of pipeline Leveraged Comm.
collateral’d by conduits finance
hedged
assets
Finance Real Estate
Govts, cash
structured
and own debt
transaction
Agenda
1
Strength
g through
g the crisis
2
Investment banking: recalibrating a leading franchise
3
'Stable' businesses: repositioning for a changed environment
Investor Relations 09/09 · 9
Earnings power in Global Markets
Revenues, in EUR bn
Successfully
y recalibrated business model
Illustrative
Revenue g
generation and loss absorption
p
S&T debt and equity revenues
Additional
de-risking
g
Mark-downs
<1%
~15%
Highly illiquid
1.0
~55%
~60%
01
0.1
Medium /
High Liquidity
1.4
5.1
4.3
4.4
2.1
4.0
32
3.2
~45%
~25%
2.1
Most liquid
flow
2004-2007
average
Note: Figures may not add up due to rounding differences
Investor Relations 09/09 · 10
1H2009
35
3.5
1.4
1Q 2Q
1Q 2Q
1Q 2Q
1Q 2Q
2006
2007
2008
2009
Sales & Trading ‘flow’
flow businesses have grown through the crisis
Revenues, indexed, 1H2007 = 100
Foreign
g Exchange
g
Money
y Markets
x1.7
1H2007
x3.2
1H2008
1H2009
1H2007
1H2008
Rates
x2.2
1H2007
Note: 2007 based on structure as of 2008, 2008 onwards based on latest structure
Investor Relations 09/09 · 11
1H2008
1H2009
1H2009
... while we continue to reduce risk and costs
Global Markets U.S. GAAP
‘pro forma’ balance sheet
‘pro-forma’
Non comp direct costs
Non-comp
(43)%
(1)%
(23)%
(7)%
1Q2008 (Peak)
(P k)
1Q2009
2Q2009
Constant input VaR
4Q2008
1Q2009
2Q2009
Example: USD basis risk
(38)%
(45)%
(8)%
(42)%
Oct 2008 ((Peak))
Investor Relations 09/09 · 12
1Q2009 Avg
g
2Q2009 Avg
g
3Q2008 ((Peak))
1Q2009
2Q2009
Corporate Finance has captured share in tough conditions
Corporate Finance revenues
In EUR m
M&A announced
Advisory
Ad
i
Origination
1,090
727
391
939
1 Goldman Sachs
851
1 Morgan Stanley
409
2 JP Morgan
779
2 Goldman Sachs
352
3 Citi
699
3 JP Morgan
304
4 BoA/Merrill Lynch
641
4 Citi
264
7
Deutsche Bank 484
5
Deutsche Bank 218
1
Deutsche Bank 166
219
EMEA
(284)
(1,298)
1 JP Morgan
430
2 Goldman Sachs
331
(99)
(1,170)
3
1Q
2Q09
Global
2008
348
654
266
Ranking by volume in USD bn
2Q
3Q
4Q
2008
Source: Thomson Reuters 28.08.2009
Note: Figures may not add up due to rounding differences
Investor Relations 09/09 · 13
1Q
2Q
2009
2 UBS
134
3 JP Morgan
132
Deutsche Bank 315
4 Citi
2
312
4 CitiDeutsche
Bank 121
71
Agenda
1
Strength
g through
g the crisis
2
Investment banking: recalibrating a leading franchise
3
'Stable' businesses: repositioning for a changed environment
Investor Relations 09/09 · 14
GTB: Facing a lower interest rate environment
Income before income taxes
Market share capture - Clearing
I %,
In
% att period
i d end
d
I EUR m
In
USD
EUR
20.8
283
281
19.4
291
250
8.2
221
9.0
9.0
18.7
181
1Q
2Q
3Q
2008
Source: CHIPS, RTGS, Target 2 Germany
Investor Relations 08/09 · 15
4Q
1Q
2Q
2009
2008 1Q09 2Q09
2008 1Q09 2Q09
A challenging environment for PCAM
Equity indices
Brokerage and portfolioVolatility
/ fund management
I d
Indexed
d 1 Jan
J 2008 = 100
R
Revenues,
iin EUR m
PBC
AWM
110
1,165
S&P 500
1 195
1,195
1,076
90
345
355
327
912
842
857
245
248
597
609
1Q
2Q
213
70
DAX
(37)%
(40)%
820
50
840
749
699
30
1 Jan 2008
30 Jun 2009
1Q
2Q
3Q
2008
Note: Figures may not add up due to rounding differences
Source: Bloomberg
Investor Relations 09/09 · 16
4Q
2009
AWM: Restoring operating leverage at lower market levels
Outlook & prospects
Income before income taxes
In EUR m
Asset Management
242
„ Reposition European MM fund exposure
188
RREEF impairments
Severance*
(110)
(54)
„ Right-size RREEF
„ Downsize hedge fund platform
(850)
„ Cost savings in mid / back office
((85))
(95)
Private Wealth Management
g
„ New advisory and product opportunities
(173)
„ Opportunities to capture market share
1Q
2Q
3Q
2008
Investor Relations 09/09 · 17
(860)
4Q
1Q
2Q
2009
„ Cost savings measures
„ Efficiency improvements
PBC: Implementation of ‘Growth
Growth and Efficiency
Efficiency’ program
Business model
Income before income taxes
In EUR m
Severance*
4
5
„ Ad
Advisory
i
b ki
banking:
P iti ffor recovery iin
Position
investment products via selective investments
„ Consumer banking: Position for margin
compression via cost-efficiency
cost efficiency
„ Leverage customer capture of prior year(s)
6
Efficiency program
15
304
328
262
150
106
206
2Q
3Q
2008
4Q
Postbank co-operation
55
51
1Q
„ Middle-office consolidation
„ Integration of credit operations
„ Back-office efficiency
1Q
2Q
2009
„ Product and distribution synergies
„ Joint
J i t purchasing
h i / iinfrastructure
f t t
synergies
i
„ Expected run-rate pre-tax impact of
EUR ~120-140 m within 3-4 years, split
~ 50%/50% between DB / Postbank
* Includes direct severance booked in business and allocations of severance booked in infrastructure
Investor Relations 09/09 · 18
Deutsche Postbank: Considerable strategic optionality
Clients of German retail banks as of 2008, in million*
~50.0
Sparkassen
~30.0
Volksbanken
14.1
11.0
10.1
6.7
~4.0
3.3
Source: Company website, Press releases
Investor Relations 09/09 · 19
Cooperation
As of 2008 (figures for Germany only)
Branches
856
930
Mobile sales force
~4,260
~1,600
FTE
~21,130
~15,460
Summary
Key financial data, 1H / 30 June 2008/2009
Profitability
Capital
and
Risk
30 June
2008
30 June
2009
Income before income taxes (in EUR bn)
0.4
3.1
Net income (in EUR bn)
0.5
2.3
Pre-tax RoE (target definition)(1)
(4)%
20%
Tier 1 capital ratio
9 3%
9.3%
11 0%
11.0%
Leverage ratio (target definition)(2)
32x
24x
Tier 1 capital (in EUR bn)
28.3
32.5
(1) Based on average active equity; pre-tax RoE reported per 30 June 2008: 3%, per 30 June 2009: 19%
(2) Total assets based on U.S. GAAP ‘pro-forma’ divided by total equity per target definition
Investor Relations 09/09 · 20
Additional information
Capital strength in peer context
As of 30 June 2009, in %
16.1
15.8
Impact of state capital
Tier 1 ratio excluding state capital
15.5
13.2
10 7
10.7
GS(1)
MS(2)
CS
UBS
(1) As of 26 Jun 2009 (2) Based on Basel I
Note: Figures may not add up due to rounding differences
Investor Relations 08/09 · 22
12.7
11.9
7.5
9.1
C
BoA
11.0
Source: Company data, Bloomberg
DB
10.5
BAR
9.7
JPM
9.5
93
9.3
8.5
8.5
SOC
BNP
Equity raisings
Announced, since 1 July 2008, in EUR bn
Government
Private
55
41
39
38
35
14
BoA/
MER
RBS
Lloyds
Group
C
Wells HSBC
Fargo
11
JPM
11
MS
11
GS
9
BAR
Note: Converted into EUR based on FX-rate as of the announcement date/reporting date; per end of June
Source: Company data, Bloomberg, U.S. Dept. of Treasury
Investor Relations 09/09 · 23
7
CS
7
Uni
credit
5
4
3
3
3
BNP
UBS
SOC
DB
Crédit
Agricole
2Q2009 specific P&L items
In EUR m
Noninterest expenses
R
Revenues
LLP
LLPs
Comp &
benefits
Gen. &
Admin
Other noncomp
T t l
Total
Total
Equity comp hedges
392
-
392
Specific Postbank gain
234
-
234
Industrial Holdings
132
-
132
-
758
-
(433)
(43)
(364)
(364)
(316)
(316)
(316)
(151)
(151)
-
(110)
Specific
p
positive
p
effects
758
Provisions related to two
specific counterparties (1)
Severance / related real
estate exit costs
-
-
-
(433)
(2)
(321)
Huntsman settlement
Maher impairment
RREEF impairments
Specific charges
Total specific items
-
(151)
(110)
(110)
(433)
(321)
(359)
(151)
(831)
(1,374)
648
(433)
(321)
(359)
(151)
(831)
(616)
(1) Related to IAS 39 reclassified assets
(2) Reflects severance payments
Note: Specific charges do not include EUR 176 m of fair value losses on own debt
Provision for credit losses
In EUR m
Related to IAS 39 reclassified assets
1 526
1,526
1,000
591
114
135
236
406
308
4Q
1Q
164
1Q
2Q
526
3Q
Thereof: CIB
(11)
(9)
125
145
Thereof: PCAM
492
2Q
1H
1H
2008
2009
2009
2008
799
249
66
361
357
779
(20)
1,136
169
229
169
221
270
391
Note: Divisional figures do not add up due to omission of Corporate Investments
Investor Relations 08/09 · 25
Problem loans
xx IAS 39 impact - IFRS impaired loans
In EUR bn
8.2
5.7
4.6
6.7
3.9
3.2
3.3
27
2.7
25
2.5
62%
65%
31 Mar
30 Jun
4.5
3.7
3.2
06
0.6
08
0.8
11
1.1
26
2.6
53%
53%
50%
46%
30 Sep
31 Dec
31 Mar
30 Jun
2008
Problem loans not considered impaired under IFRS
IFRS impaired loans(1)
2009
IFRS impaired loans coverage ratio(2)
(1) IFRS impaired loans include loans which are individually impaired under IFRS
IFRS, ii.e.
e for which a specific loan loss allowance has been
established, as well as loans collectively assessed for impairment which have been put on nonaccrual status
(2) Total on-balance sheet allowances divided by IFRS impaired loans (excluding collateral); total on-balance sheet allowances include
allowances for all loans individually impaired or collectively assessed
Investor Relations 08/09 · 26
Loan book
xx IAS 39 impact on CIB loan book
In EUR bn
23%
209
217
107
112
102
105
255
271
12
276
14
268
13
25
34
38
37
145
151
154
144
109
108
108
110
CI
CIB
PCAM
31 Mar
30 Jun
30 Sep
31 Dec
30 Jun
31 Mar
2008
2009
Germany excl. financial institutions:
86
87
88
Note: Total incl. CI / Other; figures may not add up due to rounding differences
Investor Relations 08/09 · 27
93
96
96
Risk-based analysis of monoline exposure
Fair value assets, as of 30 June 2009, in EUR bn
Risk category
g y
U S RMBS
U.S.
„ Super Senior
„ Other
Oth Subprime
S b i
„ Alt-A
Non-investment g
grade monolines
FV assets
prior to
CVA
0.7
Provisioning ratio
FV assets
after CVA
82%
AA monolines
FV assets
prior to
CVA
Provisioning ratio
FV assets
after CVA
2.0
9%
1.8
1.8
9%
1.6
0.1
Other exposures
„
„
„
„
„
TRUPS+CLO
CMBS
Corp. single name
Student loan
Other
X%
3.2
CVA in % of FV prior to CVA
Investor Relations 08/09 · 28
38%
1.9
Value of Level 3 assets((1))
Asset
sset c
classes
asses
2Q2009
Q 009 development
de e op e t
In EUR bn
88
2
6
14
80
72
10
49
„ Key changes:
(20)%
– Reduction in derivatives market values
– Sales and unwinds
64
5 2
9
– Net transfer from Level 3 to Level 2
45
33
17
15
13
31 Dec
D 2008
31 Mar
M 2009
30 JJun 2009
Financial assets AfS / Other
Financial assets(3)
Other trading assets
Positive market values(2)
Trading securities
(1) IFRS netting convention applied
(2) From derivative financial instruments
(3) Designated at fair value through profit or loss
Note: Total includes PCAM; figures may not add up due to rounding differences; indicative numbers only
Investor Relations 08/09 · 29
VaR of CIB trading units
VaR of CIB trading units
Constant VaR of CIB trading units*
99%, 1 day, in EUR m
Sales & Trading revenues
EUR 1.4 bn
EUR 3.5 bn
180
160
140
120
100
80
60
40
20
∅ 112
∅ 124
∅ 134
∅ 141
∅ 145
∅ 57
2Q2008
∅ 61
3Q2008
∅ 58
4Q2008
∅ 45
1Q2009
∅ 44
2Q2009
* Constant VaR is an approximation of how the VaR would have developed if all market data updates since 4th Oct 2007 were reversed; the calculation is based on a broad
assumption that the cumulative impact of the market data to date on the current portfolio of trading risks is the same as it would be on the portfolio at the start of the period
and that the cumulative impact is not affected by any methodology changes to the VaR during that period
Investor Relations 08/09 · 30
Cautionary statements
Unless otherwise indicated, the financial information provided herein has been prepared under International Financial
Reporting Standards (IFRS).
(IFRS)
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
plans,, estimates and p
projections
j
as they
y are currentlyy available to the management
g
of
statements are based on p
Deutsche Bank. Forward-looking statements therefore speak only as of the date they are made, and we undertake no
obligation to update publicly any of them in light of new information or future events.
By their very nature, forward-looking statements involve risks and uncertainties. A number of important factors could
therefore cause actual results to differ materially from those contained in any forward-looking statement. Such factors
include the conditions in the financial markets in Germany, in Europe, in the United States and elsewhere from which we
derive a substantial portion of our revenues and in which we hold a substantial portion of our assets, the development of
asset prices and market volatility,
volatility potential defaults of borrowers or trading counterparties,
counterparties the implementation of our
strategic initiatives, the reliability of our risk management policies, procedures and methods, and other risks referenced
in our filings with the U.S. Securities and Exchange Commission. Such factors are described in detail in our SEC Form
20-F of 24 March 2009 under the heading “Risk Factors.” Copies of this document are readily available upon request or
can be downloaded from www.deutsche-bank.com/ir.
This presentation also contains non-IFRS financial measures. For a reconciliation to directly comparable figures reported
under IFRS, to the extent such reconciliation is not provided in this presentation, refer to the 2Q2009 Financial Data
Supplement, which is accompanying this presentation and available at www.deutsche-bank.com/ir.