Report for the Year 1974 Deutsche Bank Akticngesellsc haft Contents

Agenda for the Ordinary General Meeting ...... 5 Supervisory Board ...... 6 Advisory Board ...... 8 Board of Managing Directors ...... 9 Managers ...... 10

Reports of the Board of Managing Directors Econornic Survey ...... 11 Our Bank's Business ...... 27 Our Staff ...... 43 Notes on the Statement of Accounts for the Year ...... 51 Growth of Capital and Reserves ...... 63

Report of the Supervisory Board ...... 65

Statement of Accountsfor 1974 Balance Sheet ...... 68 Profit and Loss Account ...... 70 The Growth of the Balance Sheet from January 1. 1952 to December 31. 1974 ...... 72

Report of the Group forthe Year 1974 Report of the Group ...... 79 Consolidated Balance Sheet ...... 90 Consolidated Profit and Loss Account ...... 94

Appendices List of the Deutsche Bank's Investments in Subsidiaries and Associated Cornpanies ...... 99 Security Issuing and other Syndicate Transactions as well as Introductions on the Stock Exchange ...... 103 Regional Advisory Councils ...... 107 List of Branches ...... 127 Holdings in Gerrnan Banks ...... 132 Our Bases throughout the World ...... 133 Agenda

for the Ordinary General Meeting to be held at 10 a. m. on Friday, May 23, 1975 in Saal 3 of the Congress Centrum Hamburg (CCH), Am Dammtor, Hamburg 36.

1. Presentation of the established Statement of Accounts and the Report of the Board of Managing Directors for the year 1974, together with the Report of the Supervisory Board. Presentation of the Consolidated Statement of Accounts and the Report of the Group for the year 1974.

2. Resolution on the appropriation of profits.

3. Ratification of the actsof management of the Board of Managing Directors for the vear 1974.

4. Ratification of the actsof management of the Supervisory Board for the year 1974.

5. lncrease of the capital of DM 720 million by DM 180 million to DM 900 million, by the issue of new shares with dividend rights as from Jariuary 1, 1975 at the price of DM 175 per share of DM 50 par value. The underwriting credit institutions are obliged to offer the new shares to the shareholders in the ratio of one new share for every four shares held at the price of DM 175 per share of DM 50 par value.

Authorisation of the Board of Managing Directors to stipulate all furthcr details in agreement with the Supervisory Board. Amendment of 5 4 subpara (1) and (2)of the Articles of Associatiori.

6. lntroduction of maximum voting rights (amendment of 5 18 subpara. (1) of the Articles of Association to the effect that no shareholder tnay hold more voting rights than are conferred by shares with a total par valiie eqciivalent to 5% of the share capital).

7. Election of the auditor for the vear 1975. Supervisory Board

Hermann J. Abs, Frankfurt (Main), Chairman

Hans L. Merkle, Stuttgart, Deputy Chairman Chairman of the Management of Robert Bosch GmbH

Heinz Osterwind, Frankfurt (Main), Deputy Chairman

Ottmar Baumgärtner, Frarikfurt (Main)" Deutsche Bank AG

Professor Dr. J. R. M. van den Brink, Amsterdam Chairman of the Supervisory Board of AKZO N. V.

. . -. -- .. Partner and Managing Director of Friedrich Flick KG

Jörg A. Henle, Duisburg Partner and Managing Director of Klöckner & Co.

Dr.-lng. E. h. Heinz P. Kemper, Düsseldorf Chairman of the Supervisory Board of VEBA AG

Alfred Kistenmacher, Hamburg* Deutsche Bank AG

Werner Leo, Düsseldorf * Deutsche Bank AG

Dipl.-lng. Dr.-lng. E. h. Helmut Meysenburg, Essen

Dr. h. C. Herbert Quandt, Bad Homburg V. d. Höhe Industrialist, Chairman of the Board Winter Flick Schmitz-Karhoff of Managirig Dircctors of VARTA AG von Siemens Meysenburg vari den Brink Dr. Siegfried Weber, Hamburg"

Henle Fabricius

Kernper Leo Quandt

*elected hy ths staft Advisory Board

Professor Dr. Kurt Hansen, Leverkusen, Chairman Chairman of the Supervisory Board of Bayer AG

Otto Wolff von Amerongen, Köln, Deputy Chairman Chairman of the Board of Managirig Directors of Otto Wolff AG

Wilfrid Baumgartner, Paris Honorary President of Rh6ne-Poulenc S. A.

Dr. Horst Brandt, Frankfurt (Main) Member of the Board of Managing Directors of Allgemeine Elektricitäts-Gesellschaft AEG-TELEFUNKEN

Paul Hofmeister, Hamburg Chairman of th~:Board of Managing Directors of Norddeiitsche Affinerie

Dr. Heribald Närger, München Member of the Board of Managing Directors of Siemens AG

Dr. Egon Overbeck, Düsseldorf Chairman of the Board of Managing Directors of Maniiesmann AG

Dr. Wolfgang Schieren, München Chairman of the Board of Managing Directors of Allianz Versicherungs-AG

Professor Dr. phil. nat., Dr.-lng. E. h. Dr. rer. nat. h. C. Bernhard Timm, Ludwigshafen (Rhein) Chairman of the Supervisory Board of BASF AG

Casimir Prinz Wittgenstein, Frankfurt (Main) Depiity Chairman of the Board of Managing Directors of Metallgesellschaft AG

Professor Dr. Joachim Zahn, Stuttgart-Untertürkheim Chairman of the Board of Managing Directors of Daimler-Benz AG Board of Managing Directors

Horst Burgard

F. Wilhelm Christians

Robert Ehret

Hans Feith

Wilfried Guth

Alfred Herrhausen

Andreas Kleffel

Hans Leibkutsch

Klaus Mertin

Hans-Otto Thierbach

Franz Heinrich Ulrich

Wilhelm Vallenthin

Eckart van Hooven, Deputy Assistant Managers Managers General of the of the Regional Head Branches Managers Central Offices

Werner Blessing Frankfurt Central Office Bielefeld Hannover Dr. Siegfried Gropper Georg Behrendt Ernst Cremer Wolfgang Büsselberg Dr. Siegfried Jensen Dr. Helmilt Bendig Dr. Lothar Gruss Dr. Heyko Linnemann Christoph Könneker Michael von Brentano Claus Hinz Werner Rissmann Hilmar Kopper Dr. Rolf-Ernst Breuer Oskar Klose Dr. Dieter Wefers Heinrich Kunz Robert Dörner Ulrich Stucke Hans Witscher Ernst H. Plesser Helmut Eckermann Lothar Zelz Köln Hans-Kurt Scherer Dr. Klaus Gaertner Bremen Dr. Walter Barkhausen Dr. Winfricd Werner, Dr. Peter Grasnick Dr. Roland Bellstedt Dr. Franz von Bitter Chief Syndic Rudolf Habicht Hans-Henning von Bülow Dr. Karl-Heinz Böhringer Dr. Karl Friedrich Woeste Dr. Walter Hook Peter Hartmann Karl-Heinz Fink Dr. Herbert Zapp Dr. Ulrich Hoppe Dr. Wolfgang-Dieter Lange Heinz Jürgens Düsseldorf Gerhard Junker Wolfgang Möller Mainz Paiil Körtgen Hans Müller-Grundschok Dr. Jan Hiemsch Ernst Georg Kummer Jurgen Paschke Dr. Hans Pütz Richard Lehmann Günter Seiigpiel Mannheim Dr. Walter Lippens Friedrich Stahler Karlheinz Albrecht Heinz Mecklenburg Dr. Riidiger Weber Dr. Hans Otto Mehl Dr. Fritz Lamb Dr. Hans Walter Schlöter Essen Karlheinz Reiter Dr. Ernst Schneider, Dr. Herbert F. Jacobs Heinz G. Rothenbücher Syndic Dr. Harry Leihencr Dr. Joachim Seidel Dr. Karl Schneiders Karlheinz Pfeffer München Dr. Georg Siara Dr. Theodor E. Pietzcker Dr. Siegfried Gropper Günter Sonnenburg Gunter M. Schwärzell Dr. Bernt W. Rohrer Hans Sprenzel Karl Ernst Thiemann Dr. Hans Schuck Dr. Ernst Taubner Dr. Wolfgang Tillmann Dr. Hans Sedlmayr Dr. Franz-Josef Trouvain Frankfurt Christian Vontz Stuttgart Dr. Ulrich Klaucke Dr. Ulrich Weiss Hellmut Balle Gottfried Michelmann Johann Wieland Norbert Elsen Dr. Hugo Graf von Waldei Fdorff Dr. Nikolaus Kunkel Dr. Karl-Heinz Wessel Düsseldorf Central Office Paul Leichert Erich Bindert Freiburg Wuppertal Dr. Theo Loevenich Dr. Günther Dietzel Dr. Hans Hinrich Asmus Dr. Hans-Joachim Panten Heinz Quester Hans Rosentalski Hans W. Stahl Wilhelm Schlaus, Hamburg Dr. Gerd Weber Syndic Christoph Könneker Dr. Werner Schwilling Hans-Kurt Scherer Rudolf Weber Dr. Hans-Dieter Bartels Dr. Harald P. Burchard Walter Fricsecke Heinrich Garbe Günther Hoops Johann Pfeiffer Claus Schatz Deutsche Bank at a glance

1974 1973 Balance sheet total ...... DM 50.3 bn. DM 46.3 bn. Volume of business ...... DM 50.8 bn. DM 47.0 bn. Volume of credit ...... DM 31.0 bn. DM 29.1 bn. Funds from outside sources ...... DM 46.5 bn. DM 42.8 bn. Own funds ...... DM 2,269.0 m. DM 2,179.0 m. (after the 1975,capitalincrease) ...... (DM 2,899.0 m.)

Earnings on the volume of business . Earnings from service transactions . . Staff and material expenditure .... Taxes ...... Year's net earnings ...... Allocations to published reserves ... Total dividend payment ...... Dividend per share of DM 50 par value

Shareholders ...... Customers (not incl. banks) ...... Staff ...... Offices ......

Group Balance sheet total ...... DM 78.7 bn. DM 66.4 bn. Volume of credit ...... DM 55.8 bn. DM 47.8 bn. Funds from outside sources ...... DM 73.3 bn. DM 61.8 bn. Staff ...... 40,578 39,951 Offices ...... 1,269 1,255 Report of the Board of Managing Directors

Cyclical downswing Growth falls to almost zero

In 1974 the economic clirnate in the Federal Republic In 1974, for the first time ever, GNP came close to DM of Germany cooled down steadily. Persistent cost infla- 1 trillion. It thus rose by a nominal 7%. cornpared with tion and the stabilisation measures needed to combat it, 11.5% in the previous year. However, this growth was were rnajor factors behind this development. In addition, almost totally due to price inflation. In real terrns, nation- there were the domestic and world econornic difficulties al product increased by no more than 0.5%. By contrast, resulting frorn the extremely sharp increase in the price real growth in 1973 had arnounted to 5.3%. of oil. At the beginning of the year, the econorny still lndustry had to accept a 1.5% decline in produc- seemed to be heading towards recovery after the Feder- tion. This process of contraction was compensated only al Government had abolished the Special Investment by the growth in the Services sector. All the signs of a Tax and lifted the restrictions on depreciation in Decem- "split cyclical trend" in the econorny persisted into au- ber 1973. However, by spring, the increase in dornestic tumn. Sectors with a high proportion of foreign sales, demand for capital goods had already proved to be a such as chernicals or steel production, fared rnuch rnore flash in the Pan. favourably than sectors particularly active on the do- Frorn the middle of the year, econornic activity dec- rnestic rnarket. The automotive industry, with its strong lined more and rnore rapidly. Companies' business pro- emphasis on exports, was an irnportant exception. Like spects deteriorated frorn rnonth to rnonth. The normal the construction industry, it was particularly affected, seasonal recovery after the surnrner holidays did not both cyclically and structurally. As a result, the indus- materialise. In autumn, there was also a visible slacken- tries linked with these branches were also drawn into ing in the irnpetus from foreign dernand. By the turn of the downtrend. In the construction industry alone, over the year, there was a recession, above alt in the industri- 200,000 jobs were lost. al sector. Unemployment was rising at a faster pace. At Then, in the last months of the year, demand also de- the end of the year, the nurnber of unernployed came clined sharply in those sectors in which business had close to one million; at the Same time, the number of been good until then, without any particular irnpairrnent workers on short-time exceeded the 700,000 mark and of the favourable annual results of the companies con- the nurnber of foreign workers fell by roughly 10%. In cerned. January 1975, the number of unemployed rose to 1.15 rnillion, the nurnber of workers on short-time to 900,600. The first modest successes in the fight against infla- Price inflation curbed tionary tendencies, which received additional rnornen- tum frorn the oil price rise, appeared in the course of the In 1974, by virtue of the policy consistently pursued by year. To avoid jeopardising these successes, the Federal the Bundesbank, a further acceleration in the decline of Government accepted the fact of an increasingly reces- the value of rnoney was successfully avoided. At the be- sive economy, in spite of nurnerous recornrnendations ginning of the year, there was still a danger that favouring a different course. In Decernber, however, the inflation, stirnulated by the oil price rise, might reach, or Government decided to irnplernent a cornprehensive even exceed, the 10% mark. Programme to stirnulate econornic activity, within the From spring, the annual rate of increase in the cost of scope of which DM 8-10 bn. are to be spent. living remained steady at about 7%. However, this initial Without giving up its target of stability, the Govern- success achieved by stability policy did not yet appear rnent again directed the main ernphasis of its economic at all secure due to the persistence of inflationary factors policy rnore strongly towards maintaining the nurnber of on the cost side, particularly in the wages and salaries jobs. A revival of investrnent activity was seen to be the area. Initially, the Bundesbank's restrictive course had decisive task of cyclical policy. more or less no influence on the wage agreernents con- cluded between the tariff Partners. Wage costs per unit of production continued to rise rapidly and, in the fourth quarter, were 10% above the corresponding level in the previous year. Not until the end of the year did the social Partners begin to react to the fall in employment. Infla- Serious lack of investment tion fell to 6%. In 1974, the Federal Republic moved to the bottom of In the German economy, in 1974, investment activity the international iriflation league - to the position it had more or less came to a standstill. Capital investment also held up to 1969. Only in Switzerland, Austria, Lux- fell by 7.9% in real terms cornpared with the previous embourg and the Netherlands was the rate of inflation year. This reluctance to invest was a major factor behind also less than 10%. In Japan and Italy, it climbed above the downswing in the economy. Its root causes were 20%. Above all, it seems to have been possible in the various. Rising raw material prices, wage and salary in- Federal Republic to overcome - partially, at least - the creases far in excess of improvements in productivity already wide-spread inflation mentality, e. g. in the and high interest costs depressed profit and loss ac- housing sector; the flight into real assets slackened off Counts. In spite of a cautious relaxation of the hitherto visibly. On the other hand, the propensity to save re- extremely restrictive central bank policy, there remained vived again. little room to pass on these increases in prices. In spite That the population can believe a return to greater of intensified efforts aimed at rationalisation, the profit price stability is at all possible again, may be adjudged margins of many companies were consequently forced the greatest success of central bank policy in 1974. to contract. Accordingly, less attention has been paid in the recent The national iricome account shows that in 1974 gross past to proposals concerning indexation. entrepreneurial and property income stagnated nomi- nally. Thus, a treiid which had been visible since 1969 was continued and reinforced: profit growth is lagging Record exports again well behind the expansion of total national income and, in particular, behind the increase in wages and salaries. Ctrong foreign demand for German products proved Parallel with this development, the growth rate of capital the main bolster of economic activity in 1974. In spite of investment has been falling continuously since 1970. On tougher competition on world markets, cornpanies were the other hand, the wage ratio has increased from 65.4% able to export roughly 29% more in terrns of value and in 1969 to 71.6% in 1974. The investment ratios of the 12% more in terms of volume, thus compensating in last few years are no longer sufficient to secure further Part the declining demand at home. German companies' growth. The Federal Republic is living more and more delivery times - mostly short - proved to be an advan- from its material assets. tage over competitors. A high intake of orders from abroad was recorded by, inter alia, cornpanies produc- ing equipment (e. g. steel pipes) for the development of Reticent consumers new sources of energy. The value of goods imported into the Federal Republic Private consumption in 1974 provided no stimulus for also rose sharply ( + 24%). However, with import prices economic activity. With a nominal growth rate of 7.5%. rising by an average of 25%, this meant a slight there was hardly any real growth (0.2%). The growing reduction, in terms of volume, in the utilisation of foreign nurnber of unemployed workers and workers on short- goods - a consequence of the overall economic slow- time as well as the rnorc or less complete lack of highly- down. The German foreign trade surplus rose from DM paid overtime and holidays no doubt played an impor- 33 bn. to DM 51 bn., although rnineral oil supplies at the tant r6le here. Wage and salary earners were also increased price required additional expenditure on the obliged to notc once again that growing taxes and social import side of roughly DM 16 bn. Thus, in 1974, the oil insurance contributions were eating up ever increasing price rises caused no difficulties for the Federal German portions of their rises. In addition, there was the general balance on current account - in contrast to the situation concern about the further development of the econoniy in most other industrialised nations. - not least in view of the completely unsolved oil price problem - and the quite material concern about jobs. All these factors depressed the propensity to consumc. Monetary and credit policy survey

5.6. Banks required to present month- 11.9. Federal Government cancels ly report per end of each month giving cash deposit obligation and mandatory 11.1. Effective 1.1.: Minimum reserve their total obligations to deliver and buy authorisation for assignment of domes- ratios for domestic liabilities lowered forward exchange (first report per end- tic claims to non-residents. by 5%; minimum reserve ratios for ex- July, 1975). ternal liabilities lowered by five percen- 26.9. With effect from 1.10.,minimum tage points; minimum reserve on 3.7. Banks may again utilise redis- reserve ratios on domestic and external growth of external liabilities suspended. count quotas in full. Bundesbank grants liabilities lowered by 8%. Special lombard credit no longer availa- lombard credit at lornbard rate icurrent- ble; outstanding special lombard credit ly 9%) with no lirnit on amount up to 27.9. Establishment of Liquiditäts- due for repayment on 16.1. and including 31.7. Special lombard Konsortialbank GmbH (Liquidity Con- credit is sus~ended. sortium Bank). Capital: DM 250 m. 21 .l. Foreign exchange rnarkets (Provision for call of up to DM 750 m.) closed; France leaves currency bloc (on 18.7. Period during which lombard Bundesbank takes 30% participation. 19.1.)and lets the franc float. credit is granted at lombard rate is ex- tended up to and including 31.8. Bun- 24.10. With effect from 25.10., dis- 30.1. Easing of restrictions on capital desbank raises upper limit for total of count rate lowered from 7% to 6'/?% transactions from 31 .I .74. Frorn that prirne acceptances which it is prepared and lombard rate from 9% to 8'/2%. date, no authorisation required for: bor- to purchase in market regulating opera- Banks' rediscount quotas increased rowing abroad, purchase by non-resi- tions by Divl 200 m. to DM 1.1 bn. with from 1.11. by DM 2.5 bn. dents of domestic securities other than the proviso that this additional facility bearer or order bonds with remaining shall be solely to the benefit of private 5.12. Central Bank Council announce- life of up to four years, direct invest- and smaller regional banks. Bundes- ment: growth of about 8% in central ment by foreigners in the Federal Re- bank gives assurance of refinancing as- bank money stock in 1975 is acceptable public. Cash deposit rernains in force sistance to liquidity syndicate of Feder- from point of view of stability policy. but ratio reduced from 50% to 20% and al Association of German Banks iassist- amount exempt frorn deposit require- ance will be given as a rule through in- ment raised from DM 50,000 to DM crease in rediscount quotas). Following 12.12. Comprehensive "programme to 100.000. an increase in its special rediscount promote employment and growth in facilities, the Reconstruction Loan Cor- conditions of stability" presented by Cabinet; approved by Federal Diet and 14.3. Bundesbank grantc special lom- poration can now refinance credits up Federal Council on 19.12. bard credit at 13% and again purchases to DM 0.5 bn. to be made available to bills outside the rediscount quotas at smaller and medium-sized enterprises. 111/?% subject to an agreement that 19.12. With effect from 20.12., dis- they will be repurchased after 10 days. 16.8. With effectfrorn 1.9., minimurn count rate lowered from 6'/*% to 6% reserve ratios on domestic liabilities and lombard rate from 81/2% to 8%. 8.4. Special lombard credit suspend- lowered by 10%. ed. Rates for transactions involving bills under repurchase agreement reduced to 29.8. Lombard credit at lombard rate 10% (previously 1 ?'I2% ). also granted after 31.8. until further no- tice. 24.4. Purchase of bills outside redis- count quotas suspended. 31.8. With effect from 1.10.74, the Federal Banking Supervisory Office lays 23.1. Rediscount quotas raised from 2.5. Bundesbank ceases interventions down that volume of banks' Open for- 24.1.to end of March by DM 2.5 bn. on bond market. eign exchange positions shall not ex- ceed 30% of liable funds. 6.2. With effect from 7.2, discount 22.5. As from 31.5. and until further rate lowered from 6% to 5'/2% and 8% 7l/*%. notice, banks may only utilise up to 7.9. Banks which have got into liquidi- lombard rate frorn to 75% of their total rediscount quotas. ty difficulties through no fault of their own can reduce their required mini- 6.3. With effect from 7.3.. discount 28.5. Special lombard credit granted mum reserve (effective retroactively rate lowered from 51/2% to 5% and until furthor notice at rate of 10%. from 1.8.). lombard rate from 7l/*% to 61/2%. This is clearly illustrated hy retail turnover figures. able to prevent the extreme movements on the money Growth in retail turnover of alrnost 6% corresponded to market which had been experienced the year before. a real decline by a good 1.5%. For the first time in any The specific phases of central bank policy and the re- year since the introduction of the D-Mark, less goods spective measures introduced are Set out in the survey were cold than in the preceding year. on P. 13. Until the autumn, the Bundesbank restricted it- self in the main to skimming off liquidity caused by for- eign exchange inflows or, vice versa, to compensating Higher state expenditure - growing deficits outflows caused by sales of foreign exchange. In its cornmentaries, the Bundesbank underlined its adher- Public budgets in 1974 were characterised by expan- ence to a counter-inflationary policy. Nevertheless, cen- sive spending. State consumption, with a nominal tral bank rneasures in 1974 were far less severe on the growth rate of 16%, expanded more than twice as banks than in 1973, a year of extreme restriction. strongly as the national product (+7%). Additional ex- A de facto relaxation took place step by step in the penditure in this unbudgeted magnitude resulted from course of the year. In summer, the collapse of the Her- highly excessive wage agreements in the public sector. statt-Bank and its repercussions on the money market Budgeted additional expenditure was caused by the ef- caused the central bank to grant special liquidity con- forts of central and regional authorities to provide eco- cessions for small and medium-sized banks. Then, in the nomic and structural aid, through selective promotional last quarter, the Bundesbank made its first direct allow- measures, to particularly threatened areas in the econo- ances for the decline in economic activity. It reduced the my. lmplementation of this policy was begun in Decem- discount rate in two Stages from 7% to 6% and raised her 1973 and continued in the following spring and au- the banks' rediscount quotas. In so doing, the Bundes- turnn by means of special programmes. Thus, in 1974, bank supported the falling trend in interest rates which state investrnent - in contrast to previous years - rose had been emerging for some time. The main reason why somewhat more sharply at 18.9% than state consump- the Bundesbank felt able to take this first step to ease its tion. restrictive course was because, at that time, the annual Facing this increased public expenditure were tax rev- rate of increase in the cost of living had dropped mark- enues substantially lower than foreseen. The budgetary edly. At the beginning of 1975, it continued its policy of situation deteriorated accordingly and caused the defi- relaxation by increasing rediscount quotas and by fur- cits to grow. lncreasing budgetary gaps will also contin- ther reducing the discount and lombard rates to 5% and ue to characterise the financial situation of the central, 6'/2% respectively. regional and local authorities.

Interim report on stability policy Bundesbank continues on stability course Developments in the Federal Republic in 1974 have In 1974, Bundesbank policy was again orientated con- shown that the return to greater price stability is sistently towards reducing the growth rate of money possible, given a central bank policy directed unswerv- stock and thereby limiting the extent to which price in- ingly towards this objective and given express Support creases could be financed. It applied its range of instru- for this policy from the Federal Government. In spite of ments flexibly, allowing for the changing monetary and the fact that price increases are still far too high, there is economic conditions. In 1974, it succeeded in limiting a signal here which is a source of hope for other coun- the growth of money and quasi-money (M 2) to 5.2%. tries too. At the Same time, however, it became clear compared with roughly 14% in the previous year. Cen- that such a turnround cannot be effected without some tral bank money was only made available to the banks in sacrifices, i. e. without some growth being forfeited and so far as this was consistent with its overall monetary some jobs being lost. In particular the problems on the concept. At the Same time, the Bundesbank improved construction market illustrated how much damage ac- the precision of the instruments and methods at its dis- celerating inflation had already done to the structure of posal for controlling the bank's liquidity and was thus our economy. Development of profits Melopment of wages and salarlss Annual growth rate in % Annual growth rate In %

Gross entrepreneuiial and propefty incorne National income % National income % + 19 18 17 16 15 14 13 12 11 10 9 8 7 6 6 4 3 2 1 D 1970 1971 1973 1974

Development of prices

bbour costs - Gross wage8 and - aalarios par unit of Co81 of living 1S70 = 100 reel prou domntic product (GDPI - Annual growth rate In %

Productivity - Real GDP per average employse Producer priw of Industrlat producta U I 1970 - 700: snnual growth rate in %

This darnage was revealed all the rnore clearly as the this rnodel for our econornic and social constitution have "veil of inflation" was lifted. After a learniny process becorne rnore and rnore obvious. which has been painful for rnany people, there does now Hearings held by the Governrnent have confirmed in seem to be a yeneral realisation in the Federal Republic full the doubts we expressed at length in our Annual Re- that creeping inflation threatens job security as well and Port for 1973 about the Government's CO-determination that therefore, in the longer terrn, price stability and full paper. In December 1974, the majority of the legal ex- ernployrnent are not opposites. This is even rnore the perts gave a negative answer to the question as to case in a time when, for a nurnber of reasons, we must whether equal CO-determinationin its proposed form prepare ourselves for lower growth rates than in the can be reconciled with the Basic Law. In the rneantime, past. the originally envisaged procedure of election by em- Linked with this first set-back to the "inflation mental- ployees specially empowered by the staff to vote has ity" which, at the beginning of the year, had still been also met with rejection in some quarters of the Coalition spreading, was the recollection, by broader sections of Government. The cornplicated procedure for resolving the general public, of certain basic econornic truths deadlock situations within the Supervisory Board is still which had been largely forgotten in a previous phase of, a particularly critical point. It would of necessity para- in rnany cases, ideologically coloured criticism of our lyse all decision-rnaking processes within this body and econornic and social order. impair the functional efficiency of the Supervisory Board In 1974, we had a clear illustration of how harmful as a whole. The appointrnent of board directors would wage increases far in excess of productivity improve- fall under extensive union influence. Ultimately, the right rnents can be for all parties concerned. This indicated to negotiate wage tariffs autonornously would be threat- the limits of the distribution policy which had been pur- ened in its very foundations. sued for years and the effects of which are ultimately The enactrnent of a CO-determination law which, in detrimental to thc interests of ernployees as well. the end, had not been properly worked out, would be all At the Same time, the first signs are appearing of a the rnore deplorable as it is vital, not only in the current less prejudiced attitude towards entrepreneurial earn- econornic situation in the Federal Republic but also ings and investrnents. For years, earnings were deni- bearing in rnind future developments, that companies grated as "profits". As econornic activity grew progres- should retain and, as far as possible, improve their flexi- sively weaker, a clearer understanding developed of re- bility and their ability to make decisions. lationships within the econorny: without sufficient profits, the propensity to invest will be paralysed and without investments, no new jobs will be created and Capital formation must be further promoted existing jobs will be threatened. It has therefore been stressed by the Economic Experts and confirmed by the All new capital formation rnodels put forward so far Federal Government that, in the foreseeable future, prof- have proved to be unsuitable in their material content its must grow at least as quickly as the nominal national and, above all, in their practical feasibility. They can only product. serve as the basis for further investigation. Growing public deficits have rnade it more and more In this connection, we still believe that capital forrna- difficult to finance reforms. After the change of tion in broad sections of the population - particularly in Chancellor, the Government drew the necessary con- the form of a participation in the productive capital of clusions. the economy - should be further prornoted. We consider the rnost suitable and, for practical reasons, the best way to do this is to develop the 624-DM Law. This seems to us to be the right way, the one already Doubtc about CO-determinationconfirmed used by rnore than 19 million employees (including civil servants). It does not involve particularly high adrninis- It is regrettable that the Federal Government contin- trative costs. ues to cling to its concept of equal CO-determination, although, in the meantirne, the harmful consequences of Measures to reflate the economy the Progress achieved so far, with great effort, in this area. In the field of public investment, the Federal Govern- ment programme, agreed in Decernber 1974, to stimu- late business activity provides for additional expenditure Increase in precautionary saving totalling over DM 1 bn. Stimulation of private investment is planned - the main element of the programme - by There has been a marked increase in private saving means of a 7.5% bonus, available for a limited period of since Spring 1974. Thus, the savings ratio which in 1973 time. The tax reform which became effective on January had fallen by about one percentage point to 13.6% has 1, 1975, and which, in principle, relieved the tax burden returned to its 1972 level. Amongst the reasons for on low and medium incoine groups, is expected to give saving, the precautionary rnotive yained ground as the some impetus to private consumption. However, judging economy grew cooler. Many private households tried to by the reform's first public echoes, it appears doubtful reduce their expenditure and invest reserves where pos- whether the effects hoped for will actually materialise. sible. Accordingly, these savers prcferred more liquid At any rate, dissimilarly stronger impulses should be forms of investment, above all, the savings-book meth- generated by public deficits in 1975 totalling DM 50 to 60 od with no special time commitment. In a certain sense, bn. one can speak of a return to the savings-book. We can derive opportunities for overcoming the re- In the Course of 1974, it was possible to reduce consi- cession in the second half of 1975 from the overall effect derably the interest rate gap betweeri time balances and of these measures. But there will only be a firmly-based, savings deposits, since the Bundesbank's less restric- new economic upswing if private investments expand tive liquidity policy no longer made it necessary to pro- again. It could well be that the investrnent bonus alone cure deposits almost "at any price". Consequently, will not suffice; companies' earnings must also show a some time balances found their way back to savings ac- clear improvement. So, it is a question of reducing the Counts again. In many cases, as profits and liquidity cost burdens which still exist. Besides this, it will be of deteriorated, enterprises used time balances, with the utmost importance that the uncertainties stemming which tliey had taken advantage of the particularly high from the world economic situation are resolved. interest rates in 1973, to finance company projects. There is a questionable side to the cyclical stimulus which may be expected from the public sector. Budget deficits amounting to DM 50-60 bn. should have a Structure of deposits back to normal strong inflationary effect, in so far as they are financed not via the capital market but by obtaining more credit. In 1974, as a result of these redispositions, the struc- But the issuing of loans on the capital market also re- ture of deposits with rnost banks returned to normal quires careful regulation in accordance with market con- again. ditions. Net inpayments on savings accounts in 1974 amount- The desired "upturn in stability" has still not materi- ed to DM 30.2 bn. whilst in 1973 they had risen by only alised. And without the confidence of trade arid industry DM 14.3 bri. On the other hand, there was only slight in long-term prospects, "stimulative injections", howev- growth in time deposits in 1974, whereas in the previous er massive they may be, will not succeed in producing it year they had increased by the record amount of DM 41 by force. It is particularly important in this connection bn. that in wage negotiations due consideration be given to The increase in savings deposits was reflected above the substantial changes that have taken place in the eco- all in accounts with legal period of notice (+14.3%). nomic situation. This was happily the case in the most Only premium-bearing savings deposits recorded a recent tariff agreements concluded in the metal-using higher increase (+18.7% ). industry and the public service sector. The return to a more balanced relationship between There seems to be all the more reason for the Federal savings and time deposits with most banks helped to Government, even in the next few, certainly difficult improve the earnings position again which had deterio- months, not to jeopardise by excessive deficit spending rated sharply in 1973. Financing costs fell and there was a marked recovery in the interest spread - a develop- Thus, it was possible to save other banks from collaps- ment which had been urgcntly necessary, not least in ing with serious consequences. In the Herstatt case, the view of the considerably higher risks in the credit busi- joint fund established by the private banks repaid the ness. majority of depositors. Finally, the banking system as a whole helped bring about the bank's court-approved composition: through payments into an aid fund and Falling demand for credit within the framework of a guarantee-syndicate. By mak- ing management changes and by extending the number Credits extended by German credit institutions to of shareholders in the Gerling group to include first- non-banks in 1974 rose by only 8.2%, compared with class names from the insurance business and from 9.4% in 1973 and 14.0% in 1972. Demand for credit fell in industry, firm foundations were established for the fu- the Course of the year as the economy cooled down. ture development of this important insurance company. Only public bodies took up a considerably larger volume The joint initiative undertaken by the banks and indus- of credit (+16.3%), most of which was medium and try on their own responsibility is a good example of how long-term. On the other hand, in the company sector, such a cooperative effort can prevent directly affected declining investment activity and cautious stockbuilding bank-customers from suffering larger-scale losses and had a depressing effect on the demand for credit. can protect our free market system against unfavourable The second half of 1974 was characterised by a fall in consequences. interest rates in all sectors of the market - only a slow In the meantime, to avoid bank failures in future and, process to begin with but accelerating sharply in the lat- in particular, losses by depositors, a number of mea- ter Part of the year and early in 1975. The Bundesbank sures have been introduced. In September, the Liquidi- facilitated this development by a gradual easing of the tats-Konsortialbank GmbH was founded. Furnished with restrictions on liquidity without having to lower the dis- own funds totalling DM 1 bn., its purpose is to safeguard Count rate in this first phase. Over and above the effects the banks' liquidity so as to guarantee their settlement of they had on lending and deposit rates, the reductions in domestic and foreign payment transactions. Help in the the discount rate decided on October 24 and Decem- form of liquid funds will be provided should a basically ber 19, 1974, then caused the downtrend in capital sound credit institution get into temporary payment dif- market interest rates to accelerate markedly. The reduc- ficulties. Guarantor is the German banking system as a tion of credit interest rates took the pressure off the whole, with a major participation being held by the profit situation of many companies. Deutsche Bundesbank. A comparison between the expansion of credit and With effect from October 1, the Federal Banking Su- the growth in the gross national product reveals a more pervisor~Office limited the permissible level of banks' or less parallel development. Measured in real terms, Open foreign exchange positions to 30% of liable funds the volume of credit stagnated. and thus reduced the possible risks involved in thc for- eign exchange business. As a result of the bank insolvencies over the last few Herstatt and its consequences years and due particularly to the collapse of the Her- statt-Bank, the Federal Government submitted a draft for The main event in Federal German banking in 1974 an amended version of the Banking Law. This draft was the failure of the Herstatt-Bank in Cologne, the larg- makes greater demands on the quality of the owners est and most momentous case of its kind for more than and managers of credit institutions but with freedom of 40 years. An outsider among the banks collapsed trade being preserved in principle. The Federal Supervi- because, to cornpensate for the unsatisfactory earnings sory Office would receive wider powers of supervision position in the traditional banking business, risks were and intervention. taken on the international foreign exchange market On February 1, 1975, the Federal Association of Ger- which, Seen in perspective, were unwarrantable. They man Banks presented its plans for increasing the securi- led to such heavy losses that the bank had to be closed. ty of deposits. The aim is to provide Cover for all depo- The banks' first task was to avoid further damage. sits by private individuals, commercial and industrial companies and public bodies, provided they do not ex- Bond market: favourable in spite of pressures ceed a certain ratio to the banks' liable funds. The pro- posed solution would ensure that competition betwecn The outlook on the bond market at the beginni _ the banks remains intact. the year contrasted with prospects at the year-end. In the first quarter of 1974, business was extremely slug- gish. There was uncertainty as to how economic activity Year of fluctuation on the share market would develop. The oil shock had given rise to fears that inflation would accelerate considerably. The general ex- According to the share price index (29. 12. 1972 = pectation was that interest rates would rise and the IOO), 1974 saw share prices fall by an average 2.9%. In prices of older issues were threatened with a further an international comparison, the Gerrnan share markets decline. Investors therefore showed little desire to invest thus got off comparatively lightly in a phase in which their funds on a longer-term basis. This attitude did not prices tumbled throughout the world - for shareholders change until interest rates began to fall in the course of in the Western world, 1974 was certainly the worst year the year and the first signs of success appeared in the since the end of the war. In the Federal Republic, prices fight against inflation. Bundesbank and the Central Capi- rose in January and from then until October were tal Market Committee did what they could to take ad- subject, in the main, to the negative influence of sus- vantage of this market situation and to reinforce, by tained nionetary restrictions, scarce liquidity, high capi- means of a number of cautious steps, the falling trend in tal market interest rates together with sociopolitical and interest rates. The last two months in thc year then saw economic uncertainty. Prices reached their lowest level the development of extremely strong demand for fixed- in the year on October 7, having dropped 10.2% since interest bearing securities and correspondingly high the beginning of the year. turnover levels. The change in trend on the bond market In the last few weeks of the year, the mood on the was assisted by the large growth in the banks' liquidity. share markets brightened up visibly when Progress on Due to the extremely large volume of purchases to- the stability front permitted a cautious easing of the wards the end of the year, the gross turnover in fixed-in- monetary brakes and a falling trend in interest rates be- terest bearing securities - totalliny DM 51 bn. - sur- gan to emerge. In addition, certain selective purchases passed the previous rccord of DM 48 bn. achievcd in of first-class German securities by oil exporting countries 1972. Compared with 1973, turnover increased by more - and expectatioris of further developments in this area - than 11%. However, due to a rise in repayments, net had their due effect on the course of events. By the end sales at DM 26.7 bn. remsined slightly lower than the of the year, prices had risen 8.1% above the year's low. previous year's figure. In 1974, average monthly repay- This rising trend persisted through the first few months ments totalled DM 2 bn.; thus, over the last five years, of 1975. they have more than quadrupled. This is due in particu- The split cyclical trend in the Federal Republic result- lar to the shortening of maturities. Thus, the average ed in diveryencies in the share market performance of maturity of new issues fell frorn over ten years in mid- different sectors of the economy. Thus gains were made 1972 to almost five years in mid-1974. However, since by shipbuilding, iron and steel and chemical shares. On October 1974, there has been a visible shift in the struc- the other hand, construction and construction supply turc of maturities in favour of longer-term issues again. shares sustained considerable losses. In 1974, the need for credit increased first arid fore- The average dividend paid on quoted shares rose most in the public sector. Communal bonds and public from 12.98% at the end of 1973 to 13.83% at the end of loans made up over 50% of total gross turnover; in 1973, 1974. Over the Same period, the average yield - which the corresponding figure had been 40%. Once again, in- should be seen in conjunction with the fall in prices - dustry showed reticence towards own issues due to the rose frorn 3.72% to 4.45%. high interest costs and the short maturities. They did not The volume of new issues at DM 3.5 bn. fell - against even make up 1% of the total new issue volume. the background of the sustained decline in prices - to its There was a notable shift in domestic buyers which lowest level for five years. was connected above all with the easing of the banks' liquidity situation in 1974. Credit institutions which had had no free liquid funds at their disposal in 1973, in- est of buyers - bearing in mind the strength of the D- creased their share frorn 19% (DM 3.5 bn.) to 51% (DM Mark on the foreign exchange rnarkets - was directed 14.5 bn.). By contrast, non-bank customers' share of to- particularly towards international DM-loans. Until tal purchases of fixed-interest paper fell frorn rouyhly November, on the other hand, with one exception, no 81% (DM 15.3 bn.) in 1973 to only 48% (DM 13.8 bn.) in foreign DM-loans werc issued. When the market re- 1974. covered quickly at the beginning of 1975, it was gradual- ly possible to lead investors back to maturities of up to 10 years. This developrnent, supported to a certain ex- Investment funds: more returns than purchases tent by OPEC purchases, is gratifying above all because it inakes it possible again to secure for numerous invest- The drawn-out depression on the share markets also ments throughout the world, healthier financing and affected the sales perforrnance of German investment more closely matching rnaturities, than are available on cornpanies. Not until the last few weeks of the year were the Eurocredit markets via the predominant roll-over good sales results achieved again, hand in hand with the procedure. general recovery. For the first time, Gerrnan public funds The total value of new loans was equivalent to roughly had to take back more certificates than they sold. Whilst US-$ 2.4 bn., cornpared with a corresponding figure of there had been an inflow of rnonies totalling DM 1.8 bn. roughly US-$ 5 bn. in 1973 and US-$6.5 bn. in the record in 1973, 1974 closed with a net outflow of DM 133 m. year of 1972. Dollar titles with 35% of total issues and However, the performance of individual groups of funds DM-loans with 23% had smaller Shares than in the pre- varied from this overall developrnent. Share-holding vious year, whilst the share of loans denominated in funds as a whole recorded a net inflow of monies, albeit Swiss Francs was unchanged at roughly 15%. The share sharply reduced, with internationally operating share- of Guilder-loans increased to 13%. The share of loans holdirig funds faririg worse than funds holding mainly denominated in units of account (UA) also rose. The German securities. srnall number of convertible loans (3),cornpared with Fixed-interest security funds suffered an unexpectedly previous years, can be cxplained by the general fall in sharp set-back. The outflow of rnonies totalling DM 359 prices on the international share rnarkets. m. was due primarily to returns frorn abroad. The fund However, statistics for the Eurocapital market are no cornpanies tried to switch their low-interest bearing ti- longer all that informative because they do not include tles into high-interest bearing ones. larger-sized private placements - mainly denominated in In the case of real property investment funds, sales al- US-$ - placed en bloc by individual issuing banks in the most balanced out returns. OPEC countries. In isolated cases, Arab currencies were also used for such issues. lnterest rates reached a new high on the Eurocapital market in the Course of 1974. In autumn, the issue yield Weak Euroloan market on 5 to 7-year foreign DM-loans stood at 10% or more; towards the year-end, it fell to about 93/4% and then, by In 1974, issuing activity in the market for long-terrn Eu- February, to about 9% for first-class borrowers. In the roloans came to a complete standstill on several occa- secondary market for outstanding Euroloans with longer sions. Taken in total, not even 50% of the previous maturities, buyers were able to earn even higher yields. year's volume was achieved. Investors reacted to the in- tensified inflationary trends throughout the world with great reticence towards longer-term loans, whilst poten- tial issuers hesitated in view of the high interest rates Eurodollar business Comes to its senses - better since a good number of alternative possibilities were judgement prevails available on the Eurocredit markets. Not until interest rates began to fall in November did demand pick up In the first few months of 1974, developments on the again on the Eurocapital market in the expectation that Eurocredit rnarket were distinctly stormy. They were de- interest rates would continue to fall, whereby the inter- terrnined to a large extent by the investment-seeking ex- Wide securities business

Over 2,600 members of staff in all dif- ferent parts of thc bank have to do with securities in one way or another. Those in direct contact with the ciistomers are the customers' advisers. They are ex- pected to be able to put themselves in the customer's position, to have a sense of responsibility and sourid knowledue of the stock market Port revenues of the oil-producing states and the financ- World economy in inflation and recession ing needs of the deficit countries. In the competition between the numerous Eurobanks, In 1974, the world econorny was subjected to extreme larger and larger sums were lent and maturities were ex- pressures. A slackening of economic activity, inflation tended. In many cases, the expansionary drive pushed and balance of payrnents disequilibria, drastically aggra- classical creditworthiness principles into the back- vated by the consequences of the oil price explosion, ground. And the replacement risks involved in the roll- were the major world-wide factors. over procedure were increasingly neglected by many of International inflation accelerated faster than expect- the banks involved. The number of voices raised in op- ed. Inflation was recognised internationally to be the position to an overstraining of the Eurornarket in- rnajor enemy of secure growth - but not until a consist- creased. A change took place in this situation about the ent stability policy had claimed a substantial number of middle of the year, before the collapse of a number of victirns and quick success could no longer be expected. smaller institutions active on the Euromarket and the After rnid-1974, recessive trends and fears became heavy foreign exchange losses sustained by other hous- stronger in most industrialised countries. The concern es precipitated an Open crisis of confidence. lnfluenced about employment and production became paramount. by the larger leading banks, a more reasonable relation- This was accompanied by deficits on current account of ship was established again between terrns and risks and an uriprecedented rnagnitude, due partially to the lack of the maturities of previously up to 15 years were limited efforts to achieve stability, partially to the higher oil bills. to between five and a maximurn of seven years. Bank Many observers fear that, in the near future, there insolvencies, though only partially connected with the could be developments similar to those in the great Euromarket, added considerablc impetus to this swing. world economic crisis. We feel that, at the present time, The Euromarket passed into a phase of stagnation. Not there is no justification for this anxiety. Our attitude is until the beginning of September did the Basle resolu- based not only on the improved range of economic in- tions agreed by the central banks, who acknowledged struments and the determination of governrnents to de- their responsibility towards the Euromarket in the event ploy thern against sustained downswings. Above all, in- of a critical shortage of liquidity, contribute to a restora- ternational cooperation is rnuch rnore firrnly established tion of confidence. than it was in those days, though it still leaves a lot to be However, the central banks deliberatcly issued only a desired. conditional "lender of last resort" declaration, to avoid Prospects for a swift revival of world economic activi- creating the impression that a safety-net was also being ty are slirn. It could well be some time before the cyclical Set up for Eurobanks guilty of irresponsible behaviour. downswing in the Western industrialised nations, rein- Shortly afterwards, the parent banks of syndicate Euro- forced by necessary structural adjustment processes, institutions operating in London were reminded of their can be overcorne. The volume of world trade this year liability in a letter from the Governor of the Bank of Eng- will only increase by a very small amount, if at all. land. This led to exemplary letters of comfort which Basically, we should bear in mind that, in the changed helped to reinforce confidence in the rnarket. energy situation, over the next few years, there will be We have no hesitation in welcoming these declara- tighter restrictions than there have been in the past on tions by the central banks wholeheartedly because they the growth of prosperity in the industrialised world. This added to the rcstoration of good sense and order on the is of Course particularly true of those countries with high market and clearly illustrated the risks in the Eurocredit balance of payments deficits. The aims of economic pol- business. After the unwise exaggerations at the begin- icy and the expectations of the people will have to take ning of 1974, a sound development of the Eurodollar full account of this hard fact. market now seerns possible on the basis of tried and tested bank principles. But "voluntary self-control" on the part of all concerned still continues to be necessary, Oil countries' amazing import capacity to further the consolidation of the market and thus pres- erve its long-term efficiency. The industrial countries reacted to the drastic oil price increases with a substantial cut in their oil consumption. In 1974, savings reached an average of 6% in West Eu- less untouched. However, the major portion of the sur- rope. plus petrodollars - except in the case of the United King- At the Same time, the capacity of the OPEC countries dom - did not flow into those countries with the greatest for absorbing additional imports was far greater than need for foreign exchange but into the Eurodollar market originally expected. They increased their irnports last and into countries with comparatively strong currencies, year by 70% to 75%. German deliveries to these territo- so that, to balance the deficits, all kinds of credit trans- ries grew by a similar proportion. If these trends actions - so-called secondary recycling - were still re- continue, it will be possible perhaps to reduce OPEC's quired. In addition, in 1974, roughly two thirds of oil surplus position more rapidly than had originally been funds available for foreign investrnent were invested in- assumed. There are forecasts according to which the oil itially in liquid form, whereas the consumer countries countries' aggregate balance on current account will be needed medium and longer-term credits to bridge their alrnost even by the end of the sevcnties, to be followed deficits. by deficits again after that. However, until then, the Longer-term investrnents by the oil countries became OPEC countries could well accumulate surpluses - and increasingly significant above all in the second half of thus financial and real assets abroad - totalling at least the year. The oil countries probably spent almost US-$ 3 US-$ 200 bn. In the opposite scale will be the corres- bn. on participations in cornpanies, securities and real ponding indebtedness of the oil consumer countries and property in the industrialised nations. A good 10% of their asset transfers. So, over the coming years, sub- OPEC's total surpluses amounting to US-$ 55 bn. was stantial bridging finance transactions between the oil passed on to yovernrnents and state enterprises in the exporting and oil irnporting countries will continue to be developed world in the form of direct credits. necessary. However, this recycling will only provide ternporary assistance. It will not exonerate us from the necessary, corriprehensive structural adjustments to the Private markets play a major r6le lasting changes which have taken place in the world economic situation. The recycling of oil funds to the deficit countries was The new position of the non-oil developing countries handled primarily by the private markets. In Spring 1974, is particularly difficult. They can only resolve their acute the Eurobanks alone extended balance of payrnents balance of payments problerns, which were caused by credits worth US-$ 10 bn. to Francc, the United Kirlgdorn the oil price explosiori, by means of generous aid frorn and Italy. However, in view of the precarious debtor po- the OPEC countries and the industrialised world. At the sition of the main deficit couiitries and the lack of con- same time, the continuation of development aid is a par- gruence between the maturities of funds offered and ticular problem for the industrialised countries who, funds required, it soon became clear that there were themselves, have got into balance of payrnents difficul- narrow limits to the exteiit to which balance of pay- ties due to the oil price. Nor should the prospect of a rnents deficits could be financed by private banks. Be- possible reduction of OPEC's global export surpluses to- sides this, the increasing deterioration of own capital ra- wards the end of the seventies delude us into overlook- tios demanded a greater reticence towards new corn- ing the problems which will result from the accumula- mitments on the Part of banks active on the Eilromar- tion of unusually high debts on the part of individual oil ket. The sarne is true of the US-American banks. In 1974, importing countries. This continues to be a critical point they extended foreign credits worth a total of more than in the international monetary System. US-$ 18 bn. Again, however, the major portion of this sum was extended in the first half of the year. In fact, no more larger balance of paynients credits were granted Surprisingly smooth recycling in 1974 by banks active in the Eurodollar business in the second half of 1974. In 1974, it was possible to finance the high balance of payments deficits of individual oil importing countries without any particular difficulties. To begin with, the rnonetary reserves of these countries remained rnore or New channels needed vestments were to be linked to the contribution of tech- nical know-how by the oil importing countries, this The above facts show that new channels are needed would constitute a new and particularly sensible form of for the recycling of OPEC surpluses. The private sector's the division of labour within the world economy. There contribution to the recycling process will have to be is certainly no lack of projects to serve as a practical test centred above all on this area, as the efficiency of the in- of these ideas, nor is there a shortage of the most di- ternational capital markets increases again. Very en- verse kinds of local and regional development banks. couraging initial steps have been taken in this direction. Besides this, the interest of the oil countries in pro- But an expansion of official multilateral financing facili- ductive investments in industrialiced countries has also ties as well as of direct credits from the oil countries to increased. A growing econornic interlinking of oil produ- the deficit countries is unavoidable. Cers and oil consumers is to be welcomed. In the indus- The US-$ 6 bn. increase in the IMF oil facility agreed trialised nations, the inflow of risk capital from OPEC can for 1975 and the forthcoming quota increase of roughly contribute to the achievement of outstanding structural US-$ 12 bn. will serve the first of these objectives. tasks. Not least such direct engagements will bind the Furthermore, in 1975, up to US-$ 2 bn. are to be raised oil countries more strongly to the western economic and via an EC-loan guaranteed by the member states and monetary System and strengthen their interest in con- used for the financing of balance of payments deficits. structive solutions to the energy problem in cooperation The financial assistance given by international institu- with the oil consumer countries. tions has one advantage over private credits, namely that it can be linked with appropriate conditions with re- gard to the borrowing country's economic policy. Safeguarding national interests without sacrificing liber- Moreover, as a kind of self-help operation on the part al capital movements policy of the oil consumer countries, a US-$ 25 bn. OECD fund has been established for 1975 and 1976. It will be availa- In this context, the oil countries' desire to participate ble as a financial safety-net to member countries which in existing efficient companies in the western world is have exhausted all other possibilities of deficit financing. understandable. Certainly, where such participations are It will thereby serve to reinforce the feeling of solidarity concerned, justified national interests still have to be amongst the oil consumer countries. safeguarded. The oil countries will also appreciate this In spite of these precautionary measures, a reason- in so far as these interests can be convincingly warrant- ably smooth balancing of the oil deficits over the next ed. They themselves have more or less completely na- few years only appears to be assured if the OPEC-coun- tionalised the oil companies in their territories and set tries are more willing in the future than they have been limits on foreign capital participation in many domestic up to now to give direct credits to the already highly in- industries. debted deficit countries. Besides prepayments for future For many years, the Federal Republic has been living imports from the debtor countries, one possibility here with the fact that almost one sixth of its public limited would be longer-term credit for part of the oil supplied. companies' own capital is in foreign hands. However, this inflow of capital was usually linked with additional know-how which was extremely useful, particularly in Oil countries' direct investments the days when the German economy was being rebuilt. What Government, business community and banks After accumulating considerable liquid reserves, the are seeking to determine in their present thinking on the oil countries are already showing a distinct tendency to purchase of participations in companies, is how to place utilise more and more of their foreign exchange reve- certain limits on foreign influence without jeopardising riues to form real assets. How purposefully they are en- the proven freedom of our economic order and the free- deavouring to further their own industrial development dom of capital movements and without being in any way is illustrated by the high import ratios. Furtherrnore, discriminative. This means that the form, extent and there arc good opportunities for a direct engagement of effective scope of possible measures should be restrict- oil capital in the non-oil developing countries. If such in- ed to the absolute minimum required. Capital participa-

"Ad-Hoc Programme". Unfortunately, however, tangible examination of its conditions of membership and the successes in the sense of an "orderly floating" have not Referendum planned for the summer. yet materialised, though one should not forget, of Nevertheless, under the pressure of the new crisis Course, that the cornbined inflow of oil surpluses has situation, it was possible to achieve sorne success in placed particularly difficult obstacles in the way of cen- questions of financial solidarity. Towards the end of the tral bank cooperation. On the other hand, an alternative year, the EC's medium-term rnonetary assistance was to the present exchange rate system is not in sight at the rnobilised in favour of Italy; with these funds, short-term moment. EC-loans totalling 1.2 bn. units of account (UA) were re- By the end of 1974, after fluctuations in the latter Part deemed. The Federal Republic placed a US-$2 bn. gold- of the year, the D-Mark had appreciated by about 8% secured loan at Italy's disposal. against all currencies and by 15% against the US Dollar The purpose of the EC-loan planned for 1975 and to be since the beginning of the year. This reflected, above all, guaranteed by the member countries, is to raise US-$ 2 the Federal Republic's strong foreign trade position. bn., primarily in OPEC states, in favour of Partner nations The "mini-snake", i.e. the bloc-floating of five EC- with a weak balance of payments position. The much- currencies (including the D-Mark) and two Scandinavian disputed "European Regional Development Fund" has currencies, has functioned smoothly. France withdrew been in existence since the beginning of 1975 and was frorn this rnonetary association in Spring 1974. While the allocated 1.3 bn. units of account (UA) for a trial period base rates of the mernber currencies had to be altered of three years. It may also be adjudged a positive deve- several times during 1973, no adjustments have been lopment that, at the latest round of monetary negotia- necessary since then. tions within the framework of the Group of Ten and the IMF in Washington, the EC member-states took up a common stand. It is still true that the future fate of European integra- Little Progress in European integration tion depends on political decisions taken at the highest level. These are influenced by, amongst other things, The prospects for an early completion of the European everyday economic and monetary practices in the indi- Economic and Monetary Union did not irnprove in 1974. vidual EC-countries. To secure what has been achieved The oil price crisis has intensified the structural differ- and to create a sound basis for a renewed effort, all the ences existing in Europe. The divergencies in the infla- member-states must work far more energetically than tion rates within the Cornrnunity and in the balance of they have done in the past towards a coordinated stabil- payments positions of individual countries are greater ity policy. The necessary financial assistance in favour of than ever. ltaly implemented measures to restrict im- the weaker Partners rnust be given selectively with a ports ternporarily, in its trade with the EC-partners as view to reinforcing their econornic structures. Only then well. National differences are rnaking it rnore difficult to can there be hope that the current disequilibria within reach agreernent on a cornrnon energy policy. Further the Community can be reduced to a tolerable magnitude negative factors proved to be the British desire for a re- in the foreseeable future. W

Our Bank's Business

Interest rnargins back to normal - achieved in the bank's ordinary business is needed to in- operating result improved substantially crease the Cover required for extraordinary iterns. This includes, amongst other things, higher adjustments on The Deutsche Bank's balance sheet total in 1974 rose the lending side, higher depreciation on securities and, by DM 4.1 bn. (8.8%) to DM 50.3 bn., the rate of expan- last but not least, the outlay in connection with the Her- sion thus declining considerably in line with the slacker statt failure; the bank's contribution to the joint fund Set growth of nominal GNP. In the preceding year there had up by the Federal Association of Gerrnan Banks totalled been a 15% rise in the balance sheet total. At 8.2%, the roughly DM 40 m. increase in the volume of business was also lower than in the year before (12.7%). At the year's end the balance sheet total of the Group Stronger reserve position as a whole arnounted to DM 78.7 bn. The strong growth needed due to higher risks of DM 12.3 bn. (18.6%) is due rnainly to the inclusion of our Luxembourg subsidiary - the Cornpagnie Financiere In 1974 greater risks ernerged in domestic as well as de la Deutsche Bank AG - in the Group's consolidated international business. There has been a rnarked in- balance sheet at the end of 1974. crease in the nurnber of business failures. More and The 1974 operating result was roughly double the pre- more companies are having to come to grips with seri- vious year's figure, though the latter had been notice- ous marketing and earnings problerns. If the present ably depressed. This remarkable improvernent was cyclical and - more important - the present structural mainly due to the fact that the interest business' contri- difficulties persist then more firms could be forced to bution to the bank's ordinary earnings returned to nor- cease operations. At the sarne time the possibilities mal as a result of the gradual relaxation of the tight cred- Open to stronger cornpanies and thus their willingness it restrictions. For the first time since 1970 staff and rna- to help out in such cases have dirninished. terial costs were offset by the net interest earnings. The This situation has created new problerns for us in re- surplus in commissions on banking services was up by spect of a number of engagernents. Restructuring and 11.9% and also contributed to the better overall result. Support operations are far more difficuli to carry Particularly gratifying was the contribution rnade by through; the prospects for realising collateral - particu- dealings in securities, foreign exchange and precious larly real estate - when insolvencies occur have deterio- metals for the bank's own account. rated in many areas. Nevertheless, the actual losses sus- The profit ratio - i. e. the operating result expressed as tained by the bank as a result of business failures have a percentage of the average volume of business, having remained relatively low. However, to make due allow- fallen almost continuously since 1957, could be im- ance for the changed economic situation, the bank has proved once again thanks to the wider interest spread. made considerably greater provision against contingen- The 1974 result in itself can without a doubt be regard- cies in the form of value adjustrnents and special re- ed as entirely satisfactory. However, as it was due partly serves. Besides provisions in the balance sheet in re- to the coincidence of a number of particularly favourable spect of commitrnents with obvious risks, we believe it circumstances, it would be wrong to draw over-optirnis- is necessary to provide against latent risks. We have tic conclusions frorn it about the future earnings trend. therefore decided to increase the published reserves as The interest spread will continue to be subject to fluc- much as possible. Thus, in addition to an ordinary allo- tuations and will also come under increasing pressure cation of DM 30 m. to the published reserves, a further again. Thus, unless there is a steady growth in our vol- DM 60 rn. have been transferred out of the year's net ume of business, it will be hardly possible to absorb the earnings as a special allocation. inevitable rise in staff and material costs. In a period of All in all, it must be considered fortunate that, after slack world-wide economic activity this will mean in- the hard banking year in 1973, we have been able, in the creasingly tougher competition for shares of national year under review, to cope with a number of exceptional and international markets. burdens and have at the Same time managed to rnake With regard to the 1974 result it also has to be borne the aforementioned provisions against risks. in mind that a substantial Part of the higher surplus Net product of the bank - and its distribution

Receipts from the bank's lendings, Services and capital investments in 1974 amounted to DM 4,930 m. as shown in the profit and Ioss account. Against these revenues were costs amounting to DM 3,160 m. This may be Set out in detail as follows: in rnillions of DM Recelpts aa per profit end 108s account ...... , 4,930 Cornrnission end interest psid to its custornen incl. credit lnstitutions ...... 2,618 Expendlture to covor costs of premlses, furnirhlngs snd office equipment etc, ...... 044 Deduction of these costs produces a net product of 1,770

The bank's earnlngs on its actlvities thus amounted to DM 1,770 m. This can be regarded as its contribution to the national income. The diagrams show the percentage distribution of this *~income" in 1973 and 1974 among the different groups invdved, i,e. staff, shareholders, the benk itself and, last but not least, the State. A total of DM 1,281 m. or 72.396 of the earnings accrued to t'oughly 35,800 employees and retired members of staff. The share of the earnings acoruing to the staff breaks down a5 follows E 1974 1973 in rnillions of DM Wages and salaries ...... 732 627 Profit-sharingand bonuses ...... ,...... 148 123 Capital formation scheme ...... 12 10 Compulaoy aocial security contributions ...... 107 91 Retirement pensions end other benefits ...... 260 131 Other voluntary social benefitcl ...... -- 16 11 --1,281 993 The central, regional and local authorities claimed DM 208 rn. or 11.7% in the form of taxes. Approximately 168,000 shareholders of the bank will be receriving DM 744 m. in tha form of dividend payments fol- lowing a corresponding raiolution of the Annual General Meeting in May 1976. The company retained DM 139 m. in the form of pub- lished resstves and Special items including resewes. The differentes in the percentage Shares of the individual groups between 1973 and 9974 are primarily due to the company rrrtaining a larger share of the eamings in 1974. The increase in the bank's reserve position was necesoary as a peault gf higher risk, notably in the lending business, and was made possible by ths improvement in the earnings siruation campered with 1973. The public authorities bene- fited from the higher profits in 1974, receiving an increase of DM 108 m. in revenue, thus raising their share from 8% to 11.7%. In sddition, the staff paid DM 291.3 m. (+ 19.9% 1 in the form of taxes and social insurance ~ontributionsOn their inwm. Wider liquidlty margin ularly intensive activity in our foreign business. Together with the cut in the rninirnurn reserve ratios ondomestic In the second half of 1973 the rnost difficult taskfacing liabilities this produced a reduction of rnore than one bil- the bank in its day-to-day business policy was alrnost in- lion D-Mark in the balances we were required to rnain- variably the need to create the necessary liquidity for its tain interest-free with the Deutsche Bundesbank. lending business and at the sarne time cornply with the As a result, our liquidity rnargin expanded further, extrernely high rninirnurn reserve requirernents and the with sorne short-term fluctuations due to varying influ- particularly stringent Principle I11 contained in 5 11 of the ences sternrning frorn the net foreign exchange position Banking Law, which lays down the financing structure of and public authorities' financial activity. An additional the banks' short-terrn business. In 1974 the situation factor of influence, especially in the second half of the eased from rnonth to month. There was a marked relaxa- year, was the restrained level of dernand for credit. Alto- tion already in January. The lowering of the rninirnurn re- gether, the bank's rninirnurn reserve obligation fell by an serve ratios on foreign liabilities, and particularly the lift- average of DM 1.3 bn. in the Course of the year. In line ing of the 60% rninirnurn reserve on the growth of such with this development, the cash ratio could be reduced liabilities, alleviated our position in so far as it had been to 11.1% as compared with 15% at the end of 1973. disproportionately strained up till then due to the partic-

I Rnsnoing positlon 1974 amounts in mlllions of DM

------

increases in claims on credit inetitutlons Banks' deposlts 2,478

Jon-bank customers' ieposits Inerewe In volume rnd debt instruments 2,879 d c~edlt 1,827 nci.: Incl. : slght 1,184 bills dlscounted 1,147 wvtn~sdeposits 1,487

D~linein customers' time dewslts 1.837 Deoilne in cash reserve 1,245

Other diapositlans &07 Other lunds 558 Terms policy aimed at reducing interest rates bn. over the whole year. This corresponds to an increase of 46% over 1973. Total new savings, including savings Against the background of this trend in liquidity the certificates to the value of roughly DM 100 m., rose to aim of our business policy was to bring down succes- DM 2.9 bn. compared with DM 1.8 bn. a year earlier. The sively the very high interest rates on both the lending extremely good savings result of DM 2.2 bn. in 1971 was and deposit sides that had resulted in 1973 from an un- thus surpassed. precedented restrictive policy. The bank embarked on The new savings scheme introduced in the spring un- this new Course already in the first rnonths of 1974. It cut der the name "Ultimo-Sparen" met with a good re- its rates for time deposits and at the Same time, without sponse. Under this scheme the custorner can issue a waiting for the irnpetus of a reduction in the discount standing order for variable amounts to be transferred rate, started to lower its lending rates gradually. This frorn his current account to a savings account. This is move appeared urgently necessary, particularly in view valued as a particularly convenient form of "automatic" ofthe severe strains on companies experiencing cyclical saving. difficulties, among which were a large number of small The savings scheme "Erfolgssystem 100" has continu- and tnedium-sized customers. In lowering interest rates ed to develop well. In 1974, 165,000 new savings con- on both sides of the balance sheet the bank was acting tracts were concluded. At the end of the year 1.12 mil- in line with the Bundesbank's aim of bringing the inter- lion contracts, representing a total contract sum of DM est structure back to normal without any abrupt change 3.1 bn., were held with the bank. The "Erfolgssystem in its policy. 100" contributed over DM 500 m. worth of funds to the A consequence of the bank's active terms policy is to growth of savings deposits in 1974. More than 35,000 be seen in rhe shift in the deposits structure and its ef- savers chose the cash savings plan with bonus. fect on earnings. The volume of customers' time depo- sits declined by 14.4% and - contrary to the position in the banking System as a whole - was thus substantially Renewed demand for Personal Loans in reduced. On the other hand, there was an above-average the second half of the year increase of 12.4% in savings deposits. The reticence shown by consumers in taking up con- sumer loans in the second half of 1973 continued into Stronger growth of savings deposits the first part of 1974. A noticeable revival of demand only came in the second half of the year. A clear boost Savings deposits rose in 1974 by almost DM 1.5 bn. to was given by the resumption of our advertising for con- DM 13.44 bn. Growth was almost two-thirds up on 1973, sumer credit. The ernphasis of our advertising is on con- which had been a poor year for savings, during which a sumer-oriented information on the cost and terms of marked reticence had been noticeable for the first time credit. Not least in view of the offers of dubious loan in- among savers as a result of the rising inflation rates. The termediaries that can still be seen on the market, we growth of the bank's savings deposits was again above hope in this way to encourage consumers to scrutinise the average of all the credit institutions together. and compare credit offers more critically. In contrast to 1973 savings deposits with legal period In December, we raised the ceilings for Small Person- of notice rose much more sharply (14.7%) than other al Loans (PKK) from DM 4,000 to DM 6,000 and for Loans savings deposits (10.3%). At the end of the year over for Specified Purchases (PAD) from DM 20,000 to DM three million customers held 4.5 million savings ac- 25,000 and at the Same time lowered the interest rates Counts with the bank. The average savings balance was for both credit schemes for the second time that year. DM 2,952 compared with DM 2,756 in the previous year. Following a number of irnprovements in the terms In anticipation of declining interest rates on the capi- there was lively demand again for Personal Mortgage tal market there was stronger demand for securities Loans (PHD) which are particularly suited for financing among our savings customers, particularly in the second the renovation of older properties. The maximum half of the year. Net withdrawals from savings accounts amount extended under these loans was raised from DM in respect of purchases and sales amounted to DM 1.3 100,000 to DM 150,000 and has thus been brought into line with market requirements. The volume of loans out- particularly sharp rise in bills discounted (+26.4%), standing in this area of business rose roughly 14% to which had contracted by almost one fifth in the preced- over DM 1.8 bn. ing year. As a result of the Bundesbank's restrictive poli- cy the bill of exchange had lost its function as an instru- ment of comparatively cheap sales financing. With the Further improvement in the eurocheque system relaxations in credit policy and falling money market rates there was a certain improvement in this respect in The eurocheque and the eurocheque card have be- 1974. come an indispensable means of payment for the private The growth in claims on customers ( + 2.4% ) was due customer both at home and abroad. The number of eu- entirely to short and medium-term credits. There was rocheque cards issued by us rose to almost 700,000 even a slight decline in long-term lendings (-1.8%), an (+8.8%), although the number of personal accounts re- indication that customers were not interested in enter- mained virtually constant at 1.6 million. ing into long-term commitments at the prevailing high Through international agreements it was arranged level of interest rates. that the customers of German banks may also use eu- rocheques in some European countries in the non-bank sector, i. e. to pay direct for purchases, settle hotel bills Business in shares declines, a slight improvement in etc. and that they may at the Same time make out the bonds cheques in the currency of the country concerned. This arrangement applies likewise for visitors from these There was a further contraction in turnover in securi- countries in the Federal Republic. For this purpose the ties business for our customers' account. The slight eurocheque and eurocheque card have been standar- growth in bond business was not sufficient to compen- dised in these countries. The German eurocheque has sate substantial declines in share dealings. Investors re- been brought into line with the smaller, and thus more acted with marked reticence to the uncertainty that Set manageable, international format. Other European coun- the tone of events on the capital market, particularly in tries are planning to join this standardised system. the spring. The turnover in shares was hit badly, showing a de- cline of almost one third against the previous year. Slacker demand for credit However, there were very sharp rises towards the end of 1974 in the wake of the improving trend on the stock The growth in the volume of lending continued to de- market since October. cline compared with 1972 (+15.2%) and 1973 ( +8.9% 1. Despite the more or less pronounced price losses on In the first half of the year the volume of credit extended foreign stock markets - and a generally higher risk for even fell for a while below the level at the end of 1973. the German investor due to exchange rate fluctuations, Overall, the increase in lending, at 6.3%, roughly corre- purchases of foreign shares were only 2.3% short of last cponded to the growth of nominal national product. year's level, though, by comparison with 1972, this had There was also a slight decline in the utilisation of credit been very depressed. lines already extended to customers. Despite a break of several months in issuing activity This development in our credit business took place from spring to early summer, there was an increase of against the background of a falling trend in lending rates 0.3% overall in customers' turnover in bonds. In the lat- and an, albeit initially only modest, relaxation of the ter half of the year business activity in bonds picked up Bundesbank's restrictive policy. It therefore reflects as the capital market consolidated and the downward clearly the cooling off of economic activity. A fall in sales trends in interest rates gained ground. in real terms, declining investments and the running Option business, which has been permitted since down of stocks left their mark. In the second half of the 1970, has increasingly become an established, although year - after the special deposit requirement was lifted - not very large, component of our stock market business. German companies again resorted to the Euromarket. It represents a genuine enrichment of the range of in- In relation to the total volume of lending there was a vestment possibilities offered. Thc number of safe-custody accounts we maintain for The total assets of the funds managed by DWS re- our non-bank customers rose in 1974 by more than mained constant at DM 2.82 bri. Total assets passed the 45,000 (6%) to almost 800,000, representing a total value DM 3 bn. mark after the end of the year. The share of of DM 37.9 bn. Roughly 65% of these accounts had a DWS in the total assets of all German investment com- market value of less than DM 10,000. panies in the BVI rose in 1974 from 23.5% to 24.7%. The open-end property fund "qrundbesitz-invest" of The Deutsche Gesellschaft für Fondsverwaltung rnbH our affiliated compariy, Deutsche Grundbesitz-lnvest- (DEGEF), Frankfurt (Main) - whose capital is wholly mentgesellschaft mbH, recorded an inflow of new funds owned by Deutsche Bank - offers its services as a capi- amounting to DM 26.5 m. despite the widespread re- tal investment company to institutional investors who serve of investors towards investment funds. All units wich to invest a Part of their assets in special funds for sold back to the company by customers could be placed quoted securities. The company's business Partners are ayairi. By the end of 1974 total assets increased to DM insurance companies, company pensiori and welfare 666.8 m. funds, associations, professional organisations and oth- The fund's earning potential was hardly affected by er institutional investors. The company's volume of busi- the developments in the housing industry, for almost ness has grown from year to year since its formation 80'26 of the investmerits were made in commercial and and also expanded further during the year under report. industrial properties. The total assets managed by DEGEF arnounted to one The Deutsche Gesellschaft für Wertpapiersparen mbH billion D-Mark. These were spread over 64 individual in- (DWS), Frankfurt (Main), in which we and 13 other vestment funds. The model developed and offered by banks and bankers hold a participation, was able to DEGEF of investment funds that can be tailored to meet strengthen its position in 1974 as one of the leading cap- individual needs has proved to be expedient from an ital investment companies iri West Germany. While oryanisational point of view and should attract further there was an excess of repurchases of certificates by the customers. German capital investment companies in the Bundesver- DEGEF was the first, and so far only, capital invest- band Deutscher Investment-Gesellschaften e. V. (BVI) as ment company to set up staff funds, which have been a whole, new funds amounting to DM 90.2 m. accrued to established by individual cornpanies in connection with the eight DWS investment funds offered to the yeneral wealth formation schemes agreed under collective wage public (INVESTA, INTERVEST, AKKUMULA, INRENTA, settlements or by individual cornpanies. Only members INTER-RENTA, RE-INRENTA, RING-AKTIENFONDS DWS of staff employed by the companies concerned can par- and RING-RENTENFONDS DWS) on balance from sales ticipate in such funds. This form of investment is shaped of invcstment certificates. by the staff representatives and the company manage- A total of DM 276 m. was distributed by the funds in ment in close and constant cooperation with stock mar- 1974. Many savers took advantage of the low lcvel of se- ket experts and the fund managements. lt constitutes a curity prices and re-invested their dividends cheaply at a practicable method of introducing employees to savirig discount. The re-investment ratio was roughly 360h and by investment in securities as a form of individual thus higher than the year before. The developments in wealth forrnation. the price of the uriits of the four DWS bond funds were entirely favourable, as the sharp falls that had occurred in the spring were largely cancelled out by the end of the year. The largest and oldest DWS share fund INVESTA, lssuing business contracts whose assets are mainly made up of German shares, also achieved a positive result compared with the gener- During the greater Part of the year domestic issuing al stock market trend; in terms of value appreciation the business in shares as well as borids was very difficult. fund was the leader among the other comparable Ger- On the share market the issue of new shares was ham- man share funds in 1974. The investment performance of pered by the unfavourable price trend which lasted from the three DWS funds investing in international shares March until some way into October. A cheerful under- was adversely affected by the unfavourable trends on tone Set in on the German share market in the last few the international stock markets. months of the year and brought a sharp rise in new issues, particularly in December. The bank played a man stock exchanges under our management, six were leading part in a number of capital increases and capital Japanese, four American, one British and one Swedish. adjustments, which - in terms of nominal value - corre- The Deutsche Beteiligungsgesellschaft mbH, in which sponded to virtually the same volume as in 1973. The the bank participates together with lncentive AB, market value of these transactions was, however, lower Stockholm, and Bankgeschäft Karl Schmidt, Hof, was than the year before. able to steadily cxpand its trade investment business in In 1974 almost 40% of new bond issues were floated medium-sized companies. The company currently has in the last quarter. Public authoritics were again the 13 holdings totalling a balance sheet value of DM 50 m. main issuers on the domestic market, floating sixteen in firms and groups of companies in eight branches of loaris totalling roughly DM 7 bn., in which the bank par- industry. These thirteen associated companies operate ticipated as a syndicate member. 40 production plants in this country and abroad, and After an almost two-year pause in issuing activity for achieved a total turnover of roughly DM 700 m. in 1974. industrial loans an 8'/2% option loan of BASF for a nomi- Repurchases of holdings by the associated companies' nal amount of DM 400 m. was floated under our manage- existing shareholders arid new acquisitions virtually bal- ment in May 1974. We were able to place it with lasting anced cach other out. In view of the associated compa- success. In addition, a convertible loan of Girmes-Werke nies' overall performance in the 1974 business year the AG was issued under our management. equity fund can be expected to close the year with a Due to the market conditions the bank's international profit. issuing business contracted sharply, notably in the area of public authority loans. The bank managed or co-man- aged thirteen public authority loans totalling the equiva- Purchase of Daimler-Benz shares, but trade investment lent of roughly US$ 480 m. (US$ 1.7 bn. the year before) policy remains unchanged and thus maintained its strong position among the lead- ing international issuing houses. In September, the first On January 14, 1975, the bank signed a contract with international DM-loan after a fairly long pause iri issuirig the Flick Group for thepurchase of a 29% equity holding activity was floated by us for Australia for a sum of DM of Daimler-Benz AG, Stuttgart, with effect from the turn 200 m. of the year 1975176. The purchase of this share package Furthertnore, our activities were concentrated in- represents the biggest financial deal in Deutsche Bank's creasingly on the private placing of first-class European history. The decision was laken in agreement with the issues with investors in oil-exporting countries, with management of Daimler-Benz AG after prior consulta- whom we maintained close contacts. With these tions with the Federal Government. The latter gave its transactions, which compensated for the absence of express approval of the action taken by the bank. public sector issuing activity to a large extent, the bank The shares were taken over temporarily to prevent the also helped towards solving the problem of re-cycling package that was being offered for sale from going surplus oil funds. abroad - and thus blocking foreign ownership of the ma- There was an exceptional revival of issuing activity in jority of the shares of one of West Germany's major ttie first few months of 1975 in the wake of the accelerat- companies - as well as to preserve the independence of ed decline in interest rates on the German capital mar- the Daimler-Benz management. Moreover, this move ket. In domestic business as well as in international DM- was also unavoidable considering our former sharehold- loans, a rapid succession of new loans could be suc- ing of 28.5%. cessfully placed. On the share market the issue of new The bank does not intend to hold the newly acquired shares was favoured by the growing willingness of the shares permanently in its possession but wishes to dis- public to invcst. pose of them as soon as possible. The aim of our trade The bank also played an important Part in introducing investment policy is still not to hold any majority inter- foreign companies' shares to the German stock ex- ests in industrial enterprises, nor exert any corporate in- changes in 1974. It participated in the admission of 22 fluence on the companies in which the bank has a share- shares, acting as manager in twelve instances. Of the holding and to reduce such holdings as far as is reason- companies, whose shares were introduced to the Ger- ably possible. In 1974, we again reduced the number of our trade in- Federal Republic's foreign trade and by the repercus- vestments. Our holdings of over 25% in Hoffmann's sions of the higher oil prices on international rnove- Stärkefabriken AG, Bad Salzuflen, and in Maschinenfa- ments of money and goods. brik Moenus AG, Frankfurt (Main), were cold. At the be- We were able to increase our share of the financial ginning of 1975 the bank also disposed of its over 25% Settlement of West German foreign trade. This was true holding in Schuhfabrik Manz AG, Bamberg, and a share- of the export side and particularly true of imports. Steep holding of over 10% in Didier-Werke AG, Wiesbaden. growth rates were achieved in our business with the state-trading countries and with the Near and Middle East. Reorganisation of the bank's branch network There was a further pleasing increase in our earnings from payments transactions with foreign countries. In 1974 we decided to reorganise our branch struc- However, the hectic conditions that prevailed at times in ture. These plans are being put into effect as from Janu- the international money and foreign exchange markets ary 1, 1975. It will, of Course, be quite a while before all caused control and labour expenses to increase with a of the organisational and staff Problems can be solved resultant rise in costs. and the desired rationalisation fully realised. The new model is intended to achieve even closer contact of the branches with the market and with the World-wide project financing customers. In future one department is to be responsible for taking care of the individual corporate and private The efforts of the governments of the industrialised customers in all their relations with us, thus for provid- countries to secure their future supplies of raw materials ing all banking services. and the growing tendency among the OPEC countries to This organisational structure means that strong re- develop their own infrastructure and expand their indus- gional head branches are needed with competent speci- tries have led to a greater demand for project financing. alised departments. Based on a comprehensive scope of We played a significant Part in the financing and execu- business activities these must be able to offer a well-in- tion of many projects that were awarded to West Ger- formed customer service and also assist the branches many's export industry. grouped under them. This applies also to the business with the state-trad- This was one of the major considerations for the con- ing countries. On October 29, 1974, a widely-based bank centration of the previous 23 regional head branches syndicate headed by us - as previously in 1970 and 1972 into the present 14. This tightening up of the branch org- - extended a loan to the sum of DM 1.5 bn. to the For- anisation will make for greater similarity between the eign Trade Bank of the USSR for financing the third pipe- balance sheet totals and internal structure of the areas line transaction. The loan is to be repaid primarily out of under the various regional head branches. This will the earnings from the sale of natural gas to the Federal make it easier for the bank's management to compare Republic. Further projects valued at several billion D- performances and will lend greater transparency to the Marks are currently being negotiated with the Soviet cost structure. At the same time it is intended to extend Union. the independence of the regional head offices as decen- A bank syndicate under our management and the tralised management and profit units and to delegate to AKA Ausfuhrkredit-Gesellschaft mbH signed a loan them an increasing measure of responsibility. agreement for roughly DM 790 m. with the Foreign Trade In 1974 the bank opened 15 new offices; two were Bank of the USSR in 1974. The loan is to be used for fi- closed. The total number of offices thus rose to 1,121. nancing deliveries of lorries from the Federal Republic. The AKA further expanded its volume of credit to Ger- man exporters, even though the latter at the same time Foreign business still expanding sought to finance as many of their export transactions as possible through the Euromarket because of the high The development of our foreign business was influ- domestic interest rates. There was consequently a enced to a large degree by thc substantial growth of the marked increase in the credit extended by AKA in the 1974 Foreign representative conference

In October 1974 a foreign representa- tive conference was held once again after a period of 3 years in the Federal Republic of Gerrnany. 28 representa- tives and senior members of the bank from all continents meant that the num- ber of participants and countries repre- sented was greater than ever before. These conferences have two aims: first of all the foreign representatives Want to find out at first hand about the latest experience and current problems of our bank. They also Want to pass on their observations and special knowledge from their particular host country to our customers direct. Following a press conference and a large rneeting for cus- torners from all over the Federal Territo- ry there were nurnerous talks with indi- vidual customers in the Course of the next few days. These talks, which are informative for both sides, are intended to help intensiv the ties with our busi- ness friends involved in foreign trade. The top three photos show scenes from the press conference held jointly by the Board of Managing Directors and the foreign correspondents. Underneath are two pictures frorn the meeting with customers during which the representa- tives answered fundamental economic questions regarding the foreign coun- tries. second half of the year, when uncertainty and stagna- jump in prices occurred as a result of the exaggerated tion prevailed on the Euromarket. expectations in connection with the lifting of the ban on There was also an increase in the volume of credit for private ownership of gold in the USA. financing consignments to the Gerrnan Democratic Re- The bank was able to maintain its leading role on the public extended by the Gesellschaft zur Finanzierung German bullion and gold coin market. Although demand von Industrieanlagen rnbH, Frankfurt (Main), an asso- from the gold-processing industry declined, there was at ciate company of AKA. the Same time growing interest for gold among private Besides providing finance for German exports, one of investors. In the coin market we were able to double the the main elements of our foreign business still remains high sales result of the previous year. The number of the systematic servicing of and the supply of credit to gold certificates issued by us more than trebled in 1974. first-rate international companies. In so far as this in- We held back from the highly speculative silver market. volved loans with interest adjustment clauses written in With profits rising, the turnover in foreign notes and coin and without rnatctiirig refinancing matiirities - roll-over remained roughly at the Same level as last year. credits - we adhered to the ceiling on our overall volume because of the refinancing risks prevailing in this area. As regards country risks, account had to be taken of the conseqilences of the rise in oil prices. We have also Set Successful performance of associated banks increasingly strict criteria where terms are concerried; in particular we did not entcr into any more cornmitments In the year under review we were able to further ex- with maturities of over seven years, even in exceptional pand our network of overseas bases. At theend of 1974 cases, as we did not believe that the refinancing basis Deutsche Bank had a total of 67 representative offices, perrnittcd this. We were able to meet our customers' fi- participations and subsidiaries in 46 countries. riariciriy requirements in every case where these com- The capital of the lranian investment bank (Iran Over- plied with our criteria through our subsidiary, the Com- seas Investment Bank Ltd.), which has its headquarters pagriie Financiere de la Deutsche Bank AG (CFDB). in London, has now been fully paid up. The bank's business, with its emphasis on Euro-financing, devel- oped well. The multinational bank (International Mexican Bank Growing earnings on foreign exchange dealings Ltd.), which it was decided last year to set up in London on the initiative of Banco Nacional de Mexico, has now Our cautious business policy in foreign exchange been established. The institution started to earn a profit dealings also proved its worth in 1974. Against a back- already in the first nine months of operation. Roughly ground of flexible exchange rates there were again 70% of the business volume is transacted with Mexico strong fluctuations in parities and a large measure of un- and other countries in South America. certainty in 1974. We were able to expand turnover in The Banco Bradesco de lnvestimento S.A. in Brazil, in this sector of business by 11.7% and achieve a satisfac- which we and other EBlC Partner banks have a total in- tory profit. Customers' requirements for forward ex- terest of 10%, achieved substantial growth in its lending change Cover were as high as ever. The advice of our business in 1974. The parent bank. Banco Brasileiro de foreign exchange dealers was in ever increasing de- Descontos S.A., can look back over an excellent busi- mand. ness year, in which deposits expanded strongly. The introduction of Principle la necessitated by the Having due regard to the growing economic impor- Herstatt case and the ceiling imposed therein on foreign tance of the Pacific area and the position of the Philip- exchange positions leaves us still sufficient room for pines in this Part of the world, we acquired a participa- manoeuvre in our foreign exchange dealings but it does tion in the AEA Development Corporation, Manila. This involve an exceedingly large amount of work (due to sta- investment bank, which was Set up two years ago by ten tistical returns). Philippine banks, has enlarged the circle of its share- There were extrernely sharp price fluctuations on the holders by including three American banks, one Japa- gold rnarket in the Course of the year. An exceptional nese bank and Deutsche Bank. The bank extends short Our bank in Luxembourg

Since the end of 1974 Coiiil~agnieFin- serviccs ol the Deutsche Bank heilig anciere dc la Deutsche Bank AG - our complete withoiit it. subsidiary in Luxernbourg - has beeri Thc pictures show scenes at a press included in the consolidated balance conference in Luxcmbourg shortly be- sheet of the Deutsche Bank. Ttiis corn- Fore the close of the fourth tiusincss pany was only founded in 1970. After year of Conipagnie Financiere and only fo~irbusiness years it is now, with views of the city. At the press confer- a balance sheet total of DM 5.8 billion ence thc Board of Managing Directors on 30.9.1974, one of the largest foreign of Deutsche Bank AG, Frankfurt (Main), financial institirtions in Luxembourg affirrried that the parent company re- even ttiough it has always pursued a gards itself as fully responsible for its cautioiis business policy. Compagnie offshoot. Financiere is mainly active in interna- tional lending business and on the Euromoney market. One can no longer imaginc Ihe comprehensive range of and medium-term credit to Philippine trade and industry A. Monti with special emphasis on the development aspect. A. Righi Together with other member banks of SWlFT (Society Banca Commerciale ltaliana S.p.A. for Worldwide lnterbank Financial Telecommunication) we have pushed further ahead with the international H. Treichl standardisation of the communications network for in- G. N. Schmidt-Chiari ternational payment transactions. Roughly 250 banks Creditanstalt-Bankverein from 15 countries have now joined the Computer asso- ciation. W. Guth F. H. Ulrich Deutsche Bank AG Lively activity of our subsidiary in Luxembourg L. C. Mather (until 19. 9. 1974) Despite difficult conditions on the Euromarket, the Sir Archibald Forbes (from 20. 9. 1974) Compagnie Financiere de la Deutsche Bank AG, E. J. W. Hellmuth (until 4. 12. 1974) Luxembourg, had a very satisfactory year. The balance M. G. Wilcox (from 5. 12. 1974) sheet total in the 1973174 business year (as per 30. 9.) Midland Bank Limited rose by 39.3% to the equivalent of DM 5.8 bn. The insti- tution was again chiefly engaged in money market and M. Laure international lending business. The volume of credit ex- J. Richard tended increased by DM 1.7 bn. to DM 3.5 bn. Societe Generale The steady expansion of its business has prompted us to make a further increase in our Luxembourg subsidi- R. Alloo ary's own funds. Following the allocation to the reserves P. E. Janssen out of the year's net earnings the company's capital and Societe Generale de Banque S.A. published reserves now amount to roughly DM 100 m. EBICLEASE was introduced as a special service within Europe to supplement the EBICREDIT. This provides ex- Steady growth of EBlC Porters in the partner countries with an additional meth- od of financing in cross-frontier leasing business. The importance and growth of EBlC- European Banks In the personnel sector, the join

The two joint establishments of EBIC in New York - European-American Bank & Trust Company and European-Ameri- cari Banking Corporation - were able to increase their combined balance sheet total by 131% to US$ 4 bn. This expan- sion is largely due to the fact that a major Part of the American commercial bank, Franklin National Bank, was taken over. This institute had become insolvent mainly due to extensive losses in for- eign exchange dealings and was thus auctioned publicly in October 1974. The European-American Bank & Trust Com- pany was the successful bidder. The former Franklin National Batik em- ployed about 3,500 members of staff and had more than 100 offices on Long Island and in Manhattan. It had moro than half a niillion customers and was mainly active in deposits and small- scale lending business. The purchase of this bank permitted the business basis of European-American Bank & Trust Company to be extended considerably. Together the two institutions form the largest European-owned bariking org- anisation in the United States and are now among the 25 largest banks in thc US. over twice the previous year's figure (US$ 1,742 m.).This to concentrate more on its real sphere of business. Since increase is attributable chiefly to the acquisitiori of im- its formation it has participated as underwriter in 31 is- portant sections of the American commercial bank sues and was CO-managerin five instances. "Franklin National Bank", New York, in October 1974. The Europäisch Asiatische Bank AG, Hamburg, which Under this transaction, which involved an increase in specialises in fostering trade and financial relations be- own funds of roughly US$100 m., about 100 branches of tween Europe and Asia and operates branches in Hong the Franklin National Bank were acquired. Kong, Jakarta, Karachi, Kuala Lumpur and Singapore, Thus, the two institutions now have an extensive net- expanded its business volume by more than 25% and work of branches in New York and Long lsland as well achieved strong growth in its lending business. The bal- as branches in Los Angeles and San Francisco, which re- ance sheet total rose to DM 665 m. The bank was able to sulted from earlier initiatives. The European-Anierican extend its business further, above all with European cus- banks today represent an important banking Partner for tomers' and other international companies' subsidiaries numerous US subsidiaries of European companies and, operating in South-East Asia. to an increasiny extent, for American multinationals as A second important base in the East-AsianIPacific well in American and international business. area, Euro-Pacific Finance Corporation Ltd. (EPFC), The Banque Europeenne de Credit S.A. (BEC), Melbourne, opened a branch in Port Vila (New Hebrides) Brussels, was able to expand its business further. The in 1974. This will enable EPFC to operate in the market balance sheet total rose 31% against 1973 to US$ 1,627 outside Australia as well. Its balance sheet total at the m. The emphasis of its activities was again on medium end of the 1973/74 business year rose by 32% to roughly and long-term credit business. In the wake of changes 140 m. Australian dollars (DM 450 m.). on the Euromarket there has also been a reduction in the The Europäisch-Arabische Bank GmbH, Frankfurt maturities of the credits extended by BEC. While loans (Main), and the European-Arab Bank (Brussels) S.A., of up to ten years were not uncommon in 1973, rnaturi- Brussels - both subsidiaries of the European-Arab Hold- ties since mid-I974 have generally only been between ing S.A., Luxembourg, established in 1972 by the EBlC four and six years. lnterest margins were improved. In Partners and leading Arab banks - was afforded good the past year BEC managed or CO-managed 16 interna- growth prospects as a result of the rapidly expanding tional syndicate loans with a total volume of US$ 354 m. economic importance of the Arab world. The Euro- The EBlC Group's London merchant bank, European päisch-Arabische Bank, which concentrates on commer- Banking Company Ltd., which was established in 1973, cial business with Arab countries, expanded its business ended its first full business year with a balance sheet to- volume by 54% to DM 360 m. The European-Arab Bank tal of US$ 403 m. It managed or CO-managed six Euro- in Brussels, which is chiefly engaged in Eurodollar busi- syndicate loans totalling roughly three billion dollars. In ness with the Middle East, increased its business vol- the last few months, following the improvement in the ume by 82.5% to US$460 m. international capital market situation, the bank was able New administrative building in Munich

After a construction period of only ten tor point. It will also housc all the other Deutsche Bank 1~1months the Muriicti brarich celebrated departrrierits which do not deal dircct AKTlENCESELLSUiAFT FILI LE ONCHEN the cornpletion of ihe shell of its new with the customers. b~d#$h&~nU. xL. 23 administrative building in Schwabing iri ERRlCHW HIER EIN VBRWALTUNOSGEBAUDE MIT ZWEICSTEUE. This will considerably easc the siliiatiori November 1974. It is being erected on at the branch in thr: city centre. Ttie thc outskirts of the city ori a site cover- separation of the administrative section ing 6,500 sq.m and is to be occiipied will not oiily beriefit our staff; the im- froni the beginning of 1976. Thc new provement in thc space available will building, which will providc rooni for also provide morr: suitable ~l~rr~~lid- 600 members of staff, solves urgent ings for meetinys with our customers. spacc problenis wtiicti tiave arisen ow- The riew adniiriistrative building is lo- ing to the gratifying expansion of the cated conveniently and furnished with business of the braiich. The new admin- up-to-date equipment, so that it offers istrative building will accommodaie good working conditions to thc merri- mainly the cornputer centre which is bers of staff ernployed there. being exparided as a rnajor concentra- Our Staff

Number of employees up 1.5% personnel policy is providing young people with sound professional training. This policy is oriented towards the As at the end of 1974 the bank employed 35,820 mem- longer term and we pursue it despite fluctuations in the bers of staff. That is 533 (1.5%) more than a year pre- economic cycle. viously. Considering that the volume of business rose by At the end of the year under review 3,220 apprentices 8.2% and that the branch network was extended by a were receiving training, 54% of these were young wom- further 13 offices, the results of our constant efforts to en. rationalise are again apparent here. The slackening of the labour market helped to bring The number of full-time staff (total number of employ- about a noticeable cut in staff turnover. 38% fewer full- ees minus apprentices, part-time and temporary staff) time members of staff covered by the collective salary rose by 3%. The stronger than average increase in this agreements handed in their notice than in the preceding group is mainly due to the fact that the majority of the year. young people who completed their training in the Course In 1974, we once again took on more female staff than of the year stayed with our bank and were engaged as men. The proportion of women on the staff has hence in- members of staff. In the interests of out customers we creased further. At the end of 1974 it was 52.4%, and in have always put great Store on having staff with wide the case of staff receiving agreed-scale salaries it was as banking training. One of the most important areas of our high as 59.9%. We continued our efforts to encourage

Age stnidure ot the staff ss of 31.12.1874 I fndudlng psrt.tIm6 afnpio~eaand appnntlorts - incraase over 1965 femaie ~creaeeover 18a8 shsrein % 60 and 5.9

6.5

10.0 50-54 - -1 11.2

10.0

13.0

12.5

10.5

12.7

7.7 women even more strongly in their career and to offer all level of participation was 64.4%, which was higher them better opportunities for promotion. Special inter- than the average for comparable subscriptions. nal training Programmes were the main feature. As a result of this operation the number of the bank's At the end of the period under review we looked after shareholders increased to about 168,000. Wage and sal- 8,138 retired members of staff and widows of former ary earners at present hold a total of 22.2% of the share employees, and 116 orphans. capital. In order to help our staff build up personal ac- Sets we shall offer them shares of our bank at a prefer- ence price again this year. Staff shares again at a preference price

The issue of staff shares which was carried out for the Staff advancement and information first time in 1974 was very favourably received by the employees and retired members of staff of our bank and Ac our business activities expand and organisational subsidiaries. 24,301 (68.7%) of the total number of structures alter the demands made upon our staff in- 35,368 employees entitled to purchase staff shares took crease and change continuously. Staff development advantage of the offer; 47.8% of the retired members of plans and the encouragement of individual potential staff made use of the opportunity to subscribe. The over- have hence become tasks to which our staff policy de-

urown in tne nummr or irraff from 1965 to 1974 lncluding part-time employeea and apprenttcm

m rtaff expencer wir employeen

total expenditure on atnfi male 1 femele D total effactlve number of rrnployees on sveragefor year* "u~rentlces counted ar 0.3. votes special attention. Our staff planning System, de- agreement on it concluded. The main changes were veloped three years ago, has in the meantime proved its made in the methods of assessment and the reward worth in this context. Our staff are engaged and de- plan. We hope that this will stimulate the employees' in- ployed on the basis of this system, which enables us to itiative and their interest in our bank and provide addi- advance them within the framework of the bank as a tional ideas for internal rationalisation. whole and to place them in positions best suited to their ability. Our assessment system pursues the Same aim. In orders to encourage the staff it is essential to inform Intensive vocational and further training them about their company and the opportunities for pro- motion and development available to them, The essen- Our training centre in Kronberg was fully operational tial details about our bank have been compiled as a bro- for the first time during the year under review. The archi- chure for applicants. Another complementary booklet tectural concept and functionally designed furnishings provides further information to meet the interests of have passed the test. Moreover, as planned, the centre new members of staff. has developed into a place where people can meet and In conjunction with the Staff Council of the whole pool experience. Members of the Board of Managing bank and the Organisation Department the basis of the Directors meet those attending the seminars regularly bank's suggestion scheme was revised and an internal for discussions.

2 t~ less than 16.5% 23.4% 10 to less 5 to less tha n than 17.6% 3 to less 20 voam 10years than 5 yearsi 1 A day in the Kronberg training centre

On November 13, 1974 the Kronberg tions of the bank and all levels of re- training centre was one year old. It is a sponsibility meet there; at the interna- "learning hotel" which provides prepa- tional serninars staff from our banking ration for progressive banking. Kron- Partners in EBlC come together with berg combines the qualities of a mod- employees of the Deutsche Bank. ern hotel in charming country surround- Kronbery is also a place for rrieetings irigs with the technical requirements of between rnanagement and staff. a modern school. About 4,000 men and Through this close contact oncoming women from our staff have in the members of the bank obtain more first- meantimc taken part iri 200 serninars hand inforrnation on business policy and have followed a daily Programme than ever before similar to that shown in the photos. Kronberg is not only a centre for mod- ern training, it has also becotne a meet- ing place. Membcrs nf staff frotii all over the Federal Territory, from all sec- The training of staff in more senior positions concen- the requirements of our practical business. This also trated mainly on relations to junior staff. It also included means there is a close relationship between our training seminars on questions concerning economic and social work and staff planning. The results of our staff planning policy, rhetoric and argument techniques and other as- allow us to check and adapt our training activities con- pects of management. A total of 1,285 senior executives tinuously. participated in these Programmes, all of which were Training during the year under review cost about DM held in the Kronberg training centre. 40 m., which was equivalent to 3% of total expenditure 7,302 members of staff attended courses providiiig on staff. The greater part, about DM 26 rn., was devoted specialised further training in the various sectors of to the training of apprentices. business. These courses were held increasingly at a re- gional level. This was also the case with the sales traiii- ing which is a standard component of our Programme. Thanks to all the staff 3,763 members of staff participated in it. Last year a total number of 12,350 rnembers of staff The perforrnance we achieved through our joint ef- received training in 676 seminars. In addition, the Staff forts in the 1974 business year are apparent from this Council for the whole bank held 11 serninars in our train- Report. We express our thanks to all the members of ing centres at which 236 mernbers of the Staff Councils staff for their contribution. We are grateful to the mem- were informed about topical questions concerning la- bers of the Staff Councils, the Staff Council of the whole bour relations. bank and the Economic Committee for their practical Training is not an end in itself: it is tailored to meet and reliable cooperation. rrie courirer rosrer psrsoriai curilacl with the custorners. They advise in auestions concernina financina and investment, give orders for purChases and sales of securities, Open accounts, help custorners complete a wide variety of application forms, exchange currencies, accept deposits, pay money out and provide customers with infor- mation regarding questions on foreign business. Then a glance behind the scenes. At the switchboard where thousands of calls are connected each day; in the des- patch departrnent where rnail is pre- pared for posting throughout the world; in the data processing section where, round the clock, the electronic equip- ment - controlled by rnernbers of staff - ensures that Statements of account and of securities held are issued for cus- torners as quickly as possiblc - about 10,000 per hour; in the organisation de- partment where work procedures are rationalised, building matters settled, irnprovement suggestions dealt with, office equipmenl and rnaterials are ord- ered; in the staff departments where specialists prepare corporate decisions, clarify legal questions and compile eco- nornic analyses; in the personnel de- partrnent where decisions are taken On the staff required, on the efficient mob- ilisation of the bank's staff resources, training and last but not least on wage and salary questioris. Nor is the staff's physical well-being forgotten: in the canteens of the central offices and branchcs cooks and assistants are at wnrk. Modern banking is the outcorne of har- rnonioiis...... cnoneration.. -,-- -- - bv all rnernbers of the bank. ~esidis cpecialised knowledge, it is irnportant for staff to have wide general knowledge, a sym- pathetic attitude and to be able to ad- just easily. The bank official of former days has given way to a dynarnic serv- ices salesman. In order to retain the necessary insight into banking in gener- al he has to widen and consolidate his knowledge constantly, as the economic Scene and social conditions change continuously. It is with deep regret that we report the death of the following members of our staff:

Hermann Ackerrnann, Remscheid lngrid Kernpf, Stuttgart Erna Schulze, Rheine Brigitte Albers, Gronau Elfriede Köllner, Freiburg Horst Seelmann, Hamburg Albert Alscher, Harnburg Gerhard Konig, Frankfurt (Main) Paul Spenna, Frankfurt (Main) Frant Arens, Dortmund Rolf Kunze, Gumrnersbach Herbert Spitzer, Wuppertal Ursula Blau, Frankfurt (Main) Martin Landgrebe. Dusseldorf Walter Stapel, Frankfurt (Main) Ewald Bölte, Bochum Gerhard Lau, Lübeck Ursula Stemmler, Frankfurt (Main) Wolfgang Derichs, Düsseldorf Kurt Lüder, Wuppertal Carola Stölzel, Hannover Gabriele Drews, Alfeld Heinz-Helmut Luiken, Bremen Walter Sturm, Lippstadt Erwin Drieske, Rendsbur~ Gerhard Mehlhorn, Köln Eugen Thiele, Wuppertal Otto Fangk, Dortmund Karla Merklin, Hannover Karla Topf, Wiesbaden Karl Fertig, Mannheim Alfred Milsch, Düsseldorf Heinrich Träger, Frankfurt (Main) Kurt Geyler, Hamburg Fritt Morgenstern, Düsseldorf Dr. Georg Vaerst, Bielefeld Karl Gimbel, Darrnstadt Annegret Neitzel, Bremen Hubert Völker, Neheim-Hüsten Gerhard Glave, Harnburg Leo Paulus, Köln Willi Voges, Hannover Paulheinz Grosse, Barmen Ursula Pötzsch, Düsseldorf Herbert Wagner, Hamburg Wilhelm Güsgen, Düsseldorf Heinrich Raab, Frankfurt (Main) Heinrich Walter, Frankfurt (Main) Hans Heidecker, Köln Bruno Rademacher, Siegen Otto Wierny, Harnburg Brigitte Hinzrnann, Mannheim Werner Rhein, Frankfurt (Main) Joachim Zeyer, Hamburg Johann Kastenholz, Aachen Hans-Peter Rosen, Wittlich Heinz Keimburg, Düsseldorf Günther Rossrucker, Mannheim

Moreover, we mourn the passing of 283 retired employees of our bank.

We shall always honourtheir memory. Notes on the Statement of Accountsfor theYear

Balance sheet Changes in the rnost irnportant iterns on the balance sheet in the year under review were as follows: Volume of business

The balance sheet total passed the DM 50 billion rnark towards the end of 1974; it rose in the past year by DM 4.1 bn., or 8.8%, to DM 50.3 bn. With an increase of DM 3.9 bn. (+8.2% ), the bank's volume of business (balance sheet total plus endorse- rnent liabilities) grew less in 1974 than in the previous year (+12.7%). Growth over the two years is shown in the diagram below.

Jrowth in the volume of business during the year

51

50

49 r jebilities to credit institutions .. .. ,. .. ,, *, + 1,477.9 48 Ianking liabilities to other CP%~~~MS., ,, .. „ 3. 91a.8 inciuding; term deposb , l0 47 ...... savings deposits . . ., . . ,. .. ., 4- 1,488.5 1 46 lebt instruments . . .. ., .. ., .. ., , ., .. .. + 3B.3 *rovisions far sproial purposes .. .. , . .. .. + 277.2 45 'ublished reeewes (voiuntasy rwerve fu~ud). . 4- E60.0 iundry Iisbllities ...... ,...... * .. , . .. .. -F 67.9 44 F profit 14.4 >isposable .. .. ., , ...... ,. ,. .. .- &+ 43

42

41 1 Dec. Feb. Apr. June Aug. Oct. Dec. 1973 15.5% higher turnover on our non-bank custorners' accounts was recorded in 1974; it reached a total vol- + Urne of DM 1,775 bn. against DM 1,537 bn. in 1973. Liquidity Securities

The bank's liquid funds showed the following ratios to Bonds and debt instrurnents rose by DM 208.3 m. to total liabilities: DM 1,466.0 m. DM 1,003.2 m. of these were eligible as collateral at the Deutsche Bundesbank. December 31, Shares and lnvestment fund certificates increased 1974 1973 only negligibly from DM 1,105.7 m. to DM 1,123.2 m. -in millions ( + 1.6%). Holdings which represent more than 10% of a company's capital are included at DM 865.8 m. and Cash reserve those bound by syndicate agreements at DM 197.6 m. Cash in hand ...... 294.0 258.6 Balances with the Deutsche In valuing total securities holdings the bank continued Bundesbank ...... 4,856.8 6,156.1 to apply the minirnurnvalue principle. Balances on postal cheque accounts 32.3 13.6 Holdings of more than 25% of the capital were 5,183.1 6,428.3 reported in accordance with 5 20 Stock Corporation Act to the following companies: Other liquid funds Cheques, iterns received for collection 406.9 418.3 Bills rediscountable at the Deutsche Bayerische Elektrizitäts-Werke, München Bundesbank ...... 4,251.0 2,965.4 Bergmann-Elektricitäts-Werke Aktiengesellschaft, Berlin Claims on credit institutions payable Daimler-Benz Aktiengesellschaft, Stuttgart on dernand ...... 3,368.6 3,090.3 Didier-Werke Aktiengesellschaft, Wiesbaden Bonds and debt instruments eligible Hapag-Lloyd Aktiengesellschaft, Hamburg as collateral for Bundesbank advances ...... 1,003.2 1,042.7 Philipp Holzmann Aktiengesellschaft, Frankfurt (Main) Totalliquidfunds ...... 14,212.8 13.945.0 Karstadt Aktiengesellschaft, Essen P- -- Pittler Maschinenfabrik Aktiengesellschaft, L ia b ilities Langen (Hess) Liabilities to credit institutions ...... 12,030.7 9,552.8 Schitag Schwäbische Treuhand-Aktiengesellschaft, Banking liabilities to other creditorc .. 33,904.7 33,090.9 Stuttgart Debt instruments ...... 528.3 200.0 Schuhfabrik Manz Aktiengesellschaft, Bamberg Own acceptances in circulation ...... 34.0 33.3 Suddeutsche Zucker-Aktiengesellschaft, Mannheim Sundry liabilities ...... -. 21.7 18.4 46.51 9.4 42,895.4 == In the first half of 1974 the bank sold its holdings of more than 25% in Hoffmann's Stärkefabriken Aktienge- Cash liquidity (ratio of cash reserve sellschaft, Bad Salzuflen, and in Maschinenfabrik Moe- to liabilities) 11.1% 15.0% ...... - P- nus Aktiengesellschaft, Frankfurt (Main). A similar hold- Totalliquidity (ratio of total liquid funds to liabilities ...... 30.6% 32.5% ing in Schuhfabrik Mant Aktiengesellschaft, Bamberg, P was disposed of early in 1975, as was Part of our holding in Didier-Werke Aktiengesellschaft, Wiesbaden, bring- The decline in cash liquidity against the preceding ing our share down to below 25%. year reflects the various reductions of the minimum re- In January 1975 the bank purchased a further 29% of serve ratios. On average for 1974 the balance to be main- the capital of Daimler-Benz Aktiengesellschaft in addi- tained as minimum reserve with the Deutsche Bundes- tion to its previous holding (cf.p. 34). bank was roughly one fifth lower than a year ago. The bank acquired 32,591 own shares (average pur- The principles established by the Federal Banking Su- chase price DM 275.67 per share) shown in the balance pervisor~Office on the liquidity of credit institutions sheet at DM 9.0 m. with the intention of offering them to were always observed, neither were the maximum limits its staff for subscription. stipulated for credits and participations and Open for- 40,415 own shares shown in last year's balance sheet eign exchange positions in relation to capital resources at DM 9.0 m. and a further 14,691 own shares bought at exceeded. an average price of DM 256.67 per share were purchased by the staff of the bank and of the Gerrnan rnernbers of the Group at a price of DM 115 per share. Volumo of credit 1-1974 A further 666,500 Deutsche Bank shares were bought I by the bank and the cornpanies associated with it at cur- rent prices (average purchase price DM 254.46)and sold again (average selling price DM 255.89);such securities transactions rnust be reported in accordance with Q 71, subpara. 1 No. 1 Stock Corporation Act. The sales proceeds rernained in the working funds. 73,782 shares of Deutsche Bank AG had been pledged to the bank and the institutions associated with it as collateral for loans at the end of 1974.

Total credit extended

At DM 1.8 bn., or 6.3%, the increase in the volurne of credit -for break-down See the table below - was small- er than a year ago (+DM 2.4 bn. or 8.9% ). A revival of the credit business towards the end of the first half which followed a ternporary decline did not continue in the second half of the year; since the rniddle of the year the volume has, apart frorn slight fluctuations at times, not rnaterially changed. Discounts rose most of all E + DM 1 .I bn. or 26.4% ). Claims on customers increased by DM 0.5 bn. or 2.4%, long-terrn credits declining slightly to DM 8.1 bn. (-1.8% 1. The loans included in ciaims on credit institutions The diagram above shows the developrnent of credits went up by DM 132 rn. to DM 2.2 bn.; two loans totalling over the past ten years. DM 45 rn. have been taken up for increasing the borrow- The break-down of the credits granted to our non- ers' own funds. bank customers by sectors of industry is given in the

a SrL?-

Volume of credit ?C y, 1s 1 *2 End of 1974 End of 1973 Change in millions of DM - - - .W

Clalms on custorrrers I X: shorr and medium-term ...... 15,147.2 14,452.1 + 695.1 - 4.8% 1 lang-tetm ...... 8,146.7 8,294.1 - 147.4 = 1.8% 23,293.9 22,746.2 + 547.7 = 2.4% Discounts ...... 5,488.0 4,340.8 + 1,147.4 - 28.4% Lendings to credit institutions ...... 2,180.5 2,048.5 + 132.0 = 8.4%

Tataj valume of credit ...... *...... 30,962.4 29,135.3 + 1,827pl+ I - diagram below in accordance with the categories used (+7.2%). A revival occurred only in the second half of in the Deutsche Bundesbank's statistics of borrowers. the year, after the bank was able to abandon its restraint in consumer credit business in compliance with the By amount the credits taken up by more than 1 mil- change in the Bundesbank's credit policy. Almost half lion borrowers are broken down as follows: the Programmed Credits are now accounted for by Per- sonal Mortgage Loans, which recorded above-average growth of 13.8% ; this is mainly due to the fact that this - * Y' ; < m? ,Uumbrr of credit~ -, wu-- End of 1974 type of credit was increasingly offered to finance the ,,;. ;zu t f- t ' */ "- " $ 9? modernisation of old buildings. vp to aM l0,W BoldW- 84.4% Of long-term claims on customers totalling DM 8.1 bn. Irnoie thin DM iO,WOup to DM IW,W I(0,üNt- lOlX more than DM 100,IX10 up to DM 1,000,üüO 16,418- 1.8% DM 4.7 bn., or 57.3%, is due in less than four years. Al- 3,388- 0.3% together DM 973.8 m. funds taken up for specific purpos- 1,021,856- 100.0% sec were provided by the Kreditanstalt für Wiederaufbau; these were passed on to the borrowers on the terms fixed by the lenders. rrogrammed Personal Credits totalled DM 3.7 bn. at Guarantees and letters of credit, which are not includ- the end of the year against DM 3.4 bn. at the end of 1973 ed in the above-mentioned volume of credits, rose to

Break-down of Iendlngs to customers by branches as at December 31,1974

Industry, smali trades and 1 handicrafts 12.8% 14.7% Steel construction, mechanical Trade engineering and vehicle building

8.7% Electrical engineering, precision and optical goods; production of hardware, musical instruments, Sports equipment, toys and jewellery 17.5% 5.5% Private and Chemical industry and mineral oil other borrowers processing 5.3% Leather, textile and clothing manufacture 6.6% lron and non-ferrous metals production, foundries and steel shaping 3.2% Food, beverages and tobacco

3.5% Wood, paper end printing trades 13.3% 8.9% Programrnrd credits*) Other industries

"L~.#@n&%ieblts as listed f&tal) ttfe0-rn = 8.8% DM 9.0 bn. The increase of DM 2.9 bn. against the end of More than a quarter of the additions is due to further 1973 is almost exclusively due to higher contingent lia- payment to German American Capital Corporation, Balti- bilities in foreign business. Allowance for discernible more (USA), to finance the bank's share in the acquisi- risks in the lending business has been rnade by higher tion of Franklin National Bank by European-American individual adjustments and provisions. The prescribed Bank & Trust Company, New York. overall adjustment provides for latent risks; its rates Apart from a full payment to Iran Overseas Investment were reduced according to regulations by about a quart- Bank Ltd., London, the additions also cornprise our er as cornpared with the previous year. Further provision shares in the following new establishments: for the growing risks in the lending business has been Liquiditäts-Konsortialbank GmbH, Frankfurt (Main) made by a special allocation to published reserves. International Mexican Bank Ltd., London Deductions refer mainly to our share in Bankhaus Bernhard Blanke, Düsseldorf, the assets and liabilities of which were transferred to Deutsche Bank AG with effect Investments in subsidiaries and associated companies from January 1, 1974. Our interest in "Euralliance" So- ciete de Gestion d'lnvestment Trusts S.A., Luxembourg, These investments are shown in the balance sheet at and a portion of the shares in European-Arab Holding DM 1,051.0 m. The increase of DM 151.0 m. results from S.A., Luxernbourg, were sold to foreign banks. additions of DM 162.0 m., sales of DM 6.8 rn. and depre- The depreciation, almost exclusively on participations ciation of DM 4.2 m. The additions stem largely from di- in foreign companies, fully takes into account the dis- rect and indirect investments in credit institutions; they cernible risks. A list of the bank's investments is given are mainly due to on pages 99 to 101. The Report of the Group provides information on the bank's relations with associated companies. capital increases

Badische Bank, Karlsruhe Berliner Disconto Bank AG, Berlin Fixed assets Eefa Gesellschaft für Absatzfinanzierung mbH, Wuppertal The value of land and buildings shown in the balance Banco Bradesco de lnvestimento S.A., Säo Paulo sheet rose to DM 574.8 m. Additions amounted to DM (Brazil) 138 rn. DM 7.6 m. of this is due to land and DM 130.4 m. Banco Comercial Transatlantico, Barcelona (Spain) to various new building and conversion projects, inter HOSTRA Beteiligungsgesellschaft mbH, Düsseldorf alia the administrative buildings under construction in UBS-DB Corporation, New York Eschborn and Munich. New buildings were completed in Eschwege and Gronau. Apart from deductions of DM 0.2 HOSTRA Beteiligungsgesellschaft, in which the bank m. depreciation in the amount of DM 19.2 m. was made; has 331/3% interest, holds the shares of Industriekre- the latter contains DM 2.6 rn. for extraordinary wear and ditbank AG - Deutsche Industriebank, Düsseldorf-Ber- tear. Moreover, special depreciation of DM 0.7 m. was lin, which were acquired in 1974. effected iii accordance with § 6b lncome Tax Law, DM 0.4 m. stemming from the reserve and DM 0.3 m. from sales profits in 1974. additional purchases Office furniture and equ~pmentis shown at DM 169.2 m. Additions amounted to DM 47.1 m. Minor items with Deutsche Centralbodenkredit-AG, Berlin-Köln a purchase price of DM 11.1 m. were immediately writ- Frankfurter Hypothekenbank, Frankfurt (Main) ten off. The scheduled depreciation on goods included in Banque Europeenne de Credit, Brussels this item in the balancesheet was DM 25.4 m. Nationale Investitionsbank für lndustrieentwicklung AG, Athens Other asset items savings deposits with legal period of notice; the latter show a growth of DM 846.5 m., or 14.7%, whereas other Equalisation and covering claims on public authorities savings deposits rose slightly less, viz. by DM 640.0 m. diminished from DM 422.3 m. to DM 402.1 m. Especially or 10.3%. A break-down of the savings deposits by owing to normal redernption (DM 8.2 rn.) and take-over groups of savers is given on Page 58. by the Deutsche Bundesbank (DM 2.0 m.), equalisation In addition to roughly DM 100 m. worth of savings claims declined to DM 354.0 m. Covering claims in ac- bonds, which are shown in the balance sheet under non- cordance with 5 252 Equalisation of Burdens Law and 5 bank custorners' terrn deposits, our savings customers 19 Old Savings Law decreased as a result of normal purchased a considerable amount of securities. Total redernptions by DM 9.6 m. to DM 48.1 m. new savings calculated frorn growth in savings deposits Sundry assets (DM 779.5 rn.) include in particular hold- and securities purchased (net less securities cold) to the ings in private lirnited cornpanies (GmbH) and fund debit of savings accounts at DM 2.8 bn. reached a record certificates, which are neither a participation nor, ac- level in the bank's history (see also the diagram cording to the balance sheet regulations, eligible for in- opposite). clusion under securities. Moreover, gold and silver bul- Debt instruments in circulation, which have risen from lion - DM 91.2 m. was used as Cover for registered gold DM 200 m. to DM 528.3 m., were used to finance Part of and silver certificates issued - and down-payments on the long-term lendings. building costs should be mentioned. The transitory items on the assets side represent expen- sec which relate to future accounting periods.

Funds from outside sources atal depoalts

Funds from outside sources reached a level of DM @@@. Oemand dsposltr Billionr 46.5 bn. at the end of 1974 as compared with DM 42.8 ot DM bn. at the end of the year before. The composition on the 32 two record dates is shown on a table on the next page. 30 Of the increase of DM 3.6 bn., or 8.4%, DM 2.5 bn. is due 28 to deposits from banks, DM 0.8 bn. to non-bank custorn- 26 ers' deposits and DM 0.3 bn. to debt instruments. 24 DM 2.1 bn. of the growth in bank deposits is attributa- 22 ble to term deposits; the amount corresponds to an in- crease in funds deposited with other credit institutions. 20 The developrnent of non-bank customers' deposits 18 during the past ten years is shown in the diagram on the 16 right. 14 Non-customers' demand deposits rose by DM 1.2 bn. 12 or 13.9%. Savings deposits again rank first arnong the 10 H non-bank customers' deposits, after the large amount of 8 term deposits noted at the end of the previous year was 6 reduced by DM 1.8 bn. (-14.4%) to DM 10.9 bn. The savings business took a more favourable Course in 1974 than a year ago. The increase in savings deposits was DM 1.5 bn., or 12.4%, against DM 0.9 bn. (+8.2%) Endof 64 65 B6 67 68 69 70 71 72 73 74 in 1973. Contrary to the year before, customers gave preference to the sornewhat more liquid investment in I Funds ffom wfsids sourcos - iqp~llionsof D 8 IIIY~B~~.~P n; : -- N .-.- :. .'* -.-..'. 3- "--"LJTfii*,5

B~,pr4.hiirij; 0~3~rit.~. "- 7- -i..c 9+ , - L + ,-- * - v.+F+v $-P. ,ieblliticrstowsrds credit inrtitutions d&mnd depoerits .. „ ...... 4,762,4 = 10,2% 4,648,4 = 10,89 urm dhpoaks ...... 6,732.7 = 14.6% 4,@5$.3 1 IO.BS CUStbWi6rS' drawingg on credita opened at other inrtitutions ...... 545.6 - 1.2% 243.7 0.64 I 12,030.7 = 25,9018 9,652.8 = 2234 ,Iabiliti@s rowards non-bank custorllers demahd depeaitr „ ...... Perm depaaitr ...... „ ...... satvingai deposit8 ...... I)Bbt instrumente ...... i'~t3t13t funrlr from outrids sources ......

Provisions for special purposes Torai annurl ravlngs Total provisions for special purposes rose from DM 695.7 m. to DM 972.9 m. Sevings in securities I D In-peyments less withdrawsls We made use of the possibility laid down in the law for the improvement of company pension schemes dt. December 19, 1974 to change the provisions for pen- sions from current value to the higher Part value method already with effect from December 31, 1974. To Cover the resultant additional requirement of DM 94 m., DM 65 m. was allocated in the 1974 financial year; the remain- ing DM 29 m. will be appropriated in 1975. Pursuant to the new law, provisions for pensions actuarially comput- ed as of December 31, .1974, including higher current pensions, total DM 686.5 m. Provisions for pensions, aft- er a net transfer of DM 172.2 m., is shown at DM 657.5 m. Otherprovisions in theamount of DM 315.4 m. include provisions against taxes, the overall adjustment which cannot be offset against assets and provisions for risks arising from the lending business, for other contingent losses from pending business transactions and for uncertain liabilities. Other liability items DM 32.6 m. on the balance sheet. The other special item shown for the first time at DM 41.5 m. corresponds to The item sundry liabilities (DM 21.6 m.) includes liabil- the amount written back as profit from overall adjust- ities outside the banking business, inter alia wage and ments as a result of the prescribed reduction in the cal- church tax and social security contributions payable. culation rates, on which tax need only be paid in subse- The special items including reserves total DM 79.8 m. quent years, in accordance with Section V of the general After allocating DM 1.2 m. and releasing DM 0.1 m., the administrative regulation on credit institutions' overall special item in accordance with the tax law for the pro- adjustments recognised for tax purposes dt. July 23, motion of private in vestment in developing countries 1974. The transitory items on the liabilities side Cover re- increased to DM 5.7 m. Book profits enjoying tax ceipts which relate tofuture financial years. privileges, notably from the sale of securities in the amount of DM 6.2 m. were allocated to the special Item in accordance with (5 6b lncome Tax Law, after DM Contingent liabilities, comments 0.3 m. had been offset in advance against additions to the real estate account. DM 0.4 m. was released and Endorsement liabilities on rediscounted bills of ex- written off as a special depreciation. This leaves a sum of change declined from DM 714.7 m. to DM 501.9 m. Bills

, . I I ; ,,„>-2 I Pensioners

11.3% Other peraons not self- employed and thoae who have not stated thelr profession

9.0% Celf-employed

t 46% 3.7% WMW&~kralgn wackere I I lnstitutional savers I to a total arnount of DM 153.1 m. were in the process of Profit and Loss Account collection on balance sheet date. Liabilities arising from guarantees of various kinds Earnings on the volume of business and warranty contracts rose frorn DM 6.1 bn. to DM 9.0 bn., due especially to higher guarantees in foreign trade The average volume of business increased only half as business and a larger volurne of letters of credit. rnuch as in the preceding year; the rate of growth was Obligations to repurchase iterns assigned en pension rnerely 7.6%. Hence the increase in the interest surplus came to DM 1.2 bn. as of December 31,1974. by 55.0% to DM 1,628.5 rn. is largely due to the rise in Liabilities forpossible calls on Shares not fully paid up the interest rnargin, which had fallen to the lowest level in public and private lirnited cornpanies were DM 28.7 m. so far in 1973. This developrnent reflected market condi- as at the end of the year. Coupled with the share-holding tions that had returned to normal and the Deutsche Bun- in Liquiditäts-Konsortialbank GmbH is a contingent lia- desbank's credit relaxations, in particular the successive bility for other partners' obligations to pay up further reductions in the minirnum reserves. capital when called, in addition to such an obligation up lnterest receipts from lending and rnoney market to DM 44.6 rn. transactions consequently rose by 25.5% against the A hrief report on our statement in connection with our previous year. At the sarne time, the increase in interest Luxembourg subsidiary, Compagnie Financiere de la expenses could be lirnited to 10.1%. Deutsche Bank AG, is given on Page 79. Earnings on the volurne of business, which for the first time since 1970 again rnore than Cover staff and material expenditure, rnay be broken down as follows:

1974 1973 - in rnillions of DM - lnterest and sirnilar receipts from lending and money rnarket transactions ...... 3,979.6 3,171.0 Current receipts frorn securities, debt reg- ister claims, and investments in subsidi- aries and associated cornpanies ...... 253.4 245.3 - -L 4,233.0 3.41 6.3

. . . . 2,604.5 2,365.6 lnterest and similar expenses ...... - .. Earnings on the volume of business (inter- est surplus) ...... 1,628.5 1,050.7 ---

Earnings on services

Commissions and other receipts from service transac- tions rose by DM 46.5 m. Apart from higher receipts re- sulting frorn an increase in account-handling fees with effect frorn April 1, 1974, this was rnainly attributable to another strong growth of receipts on international busi- ness. The further decline in cornrnissions received in se- curities business was prirnarily due to lower turnover in share dealings. After deducting the expenditure on cornrnissions (DM 11.7 rn.), there rernained a surplus of DM 453.0 rn., this is DM 48.1 m., or 11.9%, rnore than in thc year before. Other receipts efforts to expand its market share by selective advertis- ing measures also made themselves felt here. The other receipts from ordinary and extraordinary business grouped in this item are shown at DM 211.9 m. A fairly large portion of the DM 92.8 m. increase is ac- Depreciation counted for by the expansion of foreign exchange busi- ness and gold dealing, which was recorded in spite of DM 56.4 m. (DM 51.1 m. in 1973) was required for de- the bank's cautious business policy. preciation and adjustments on land and buildings, and Depreciation and adjustments on claims and on office furniture andequipment. DM 0.8 m. was writ- securities, and allocations to provisions for possible ten off pursuarit to 5 6b lncorne Tax Law. Depreciation loan losses have been offset against receipts on claims on investments in subsidiaries and associated written off, on released adjustments and provisions for companies relates to value adjustments on foreign possible loan losses, as well as gains from the sale of participations. securities and are shown at DM 117.5 m. (DM 5.9 m. in 1973). The depreciation required on securities and the provisions for risks arising from the lending business ex- Taxes ceeded the corresponding arnounts for the previous year. The improvement in the Operating result, i. e. the sur- plus in day-to-day business, exceeded the growth of ex- traordinary expenditure. In consequence of this develop- Staff and material expenditure ment of the overall result, taxes for the year under report are shown at DM 206.6 m. (DM 100.8 m. in 1973), DM Staff expenses (salaries and wages, compulsory so- 195.1 m. of which as taxes on income, earnings and cial security contributions, expenditure on retirement property. pensions and other benefits) amounted to DM 1,280.8 m. Thc excessively great increase of DM 287.7 m., or 29%. over the previous year, together with salary rises, is due Other expenses to a considerably higher allocation to the provisions for pensions to coniply with 6a lncome Tax Law as A total of DM 48.9 m. was transferred to the special amendcd by the law for the improvernent of company item including reserves. DM 41.5 m. of this amount is ac- pension schemes of December 19,1974. counted for by the writing back of Part of the overall ad- In the year under review, the agreed-scale salaries justment under the prescribed reduction of the calcula- were raised by 11% effective March 1 and by another tion rates and DM 6.2 m. by profits from the sale of land per cent in each case effective August 1 and October 1 and buildings, and securities, which enjoy tax conces- with provision for minimum basic increases. The sala- sions pursuant 10 5 6b lncome Tax Law. A further DM 1.2 ries outside the agreed scale were raised as well. The in- m. was appropriated in accordance with the tax law for crease in staff was 533 employees (+1.5%) as at De- the promotion of private investment in developing cember 31, 1974, and 818, or 2.6%, on an annual aver- countries. age. Other expenses include DM 27.1 m. special contribu- Taking individual items, salaries and wages rose by tions to the joint fund set up in connection with the clo- DM 136.9 m., or 17.8%, compulsory social security con- Sure of Bankhaus I. D. Herstatt KG a.A., Köln. tributions by DM 15.6 m., or 17.1%, and expenditure on Total emoluments of the Board of Managing Directors retirement pensions and other benefits by DM 135.2 m. amount to DM 8,599,584.50. Former members of the or 103.5%. Board of Managing Directors or their surviving depend- The considerable increase in material expenditure for ents received payments aggregating DM 1,988,000.-. the banking business by 22.9% in 1974 reflects both the The Supervisory Board received DM 298,230.- as fixed rise in prices and additional expenditure on bank prem- emolurnents; the Supervisory Board payments, which ises and furniture and equipment. The bank's increased vary according to the annual dividend paid, amounted to DM 777,174.95. Members of the Advisory Board received Capital and reserves DM 282,020.- and the members of the Regional Advisory Councils DM 1,704,725.-. DM 90 m. out of the 1974 net earnings was allocated to the published reserves. We propose to increase the capital by DM 180 m. so Proposed appropriation of profits as to strengthen the bank's own funds further, through the issue of 3.6 rnillion new bearer shares of DM 50.- en- The profit and loss account shows: titled to dividend from January 1, 1975; the shares will be offered in the ratio of 1 :4at DM 175.- per share of DM Receipts ...... DM 4,930,282,565.25 50.-. Expenses ...... DM 4,696,282,565.25 After the capital increase, which the General Meeting Year's net earnings . . DM 234,000,000.- has to resolve, is effected, the bank's own funds shown Allocations to pub- will be composed as follows: lished reserves allo cation frorn year's net earnings ...... DM 30,000,000.- Capital ...... DM 900.0 m. special transfer from Published reserves year's net earnings DM- 60,000,000.- DM 90,000,000.- a) statutory reserve fund ...... DM 1,084.0m. Disposable pro fit - - - - DM 144,000,000.- blotherreserves ...... DM 915.0m. Total ...... DM 2,899.0rn.

It will be proposed to the shareholders that a dividend of DM 10.- per share of DM 50.- par value, i. e. DM 144 m., be paid on the capital of DM 720 m. Frankfurt (Main), March 1975

The Board of Managing Directors Growth of Capital and Reserves

Published Capital and Capital Reserves Reserves Total

D M

January 1. 1952 (openirig balance sheet) ...... 140.500.000 . Allocatiori frorn the Conversion Account ...... 1,500,000.- Allocations frorri the net earnings 1952-1956 ...... 108,000,000.- Capital increase: 1955 (1 for 2 at par) ...... 50,000,000.- Capital increace: 1956 (1 for 3 at par) ...... 50,000,000.- Deccniber 31. 1956 ...... 350.000.000 . - Allocation from the net earnings 1957 ...... 30,000,000.-- Decernher 31. 1957 ...... 380,000,000.- Capital increase: 1958 (1 for 4 at par) ...... 50.000.000 . -. Allocatiori from the net earninys 1958 ...... 35,000,000.- December 31. 1958 ...... 465,000,000.- Allocation from the net earnings 1959 ...... 35,000,000.- December 31. 1959 ...... 500,000,000.- Allocatioii frorn the net earnings 1960 ...... 50,000,000.- Decenibcr 31. 1960 ...... 550,000,000.- Capital increase: 1961 (1 for 5 at par) ...... 50,000,000.- Allocation frorn the net earnings 1961 ...... 40,000,000.- December 31. 1961 ...... 640.000.000 . Allocation from the net earnings 1962 ...... 20,000,000.- December 31 . 1962 ...... 660,000,000.- Allocation frorn tlie net earnings 1963 ...... 40,000,000.- December 31. 1963 ...... 700,000,000.- Allocation from the net earnings 1964 ...... 30,000,000.- Decemher 31. 1964 ...... 730,000,000.- Capital increase: 1965 (1for 6 at par) ...... 50.000.000 .... Allocation from tlie net earnings 1965 ...... December 31. 1965 ...... Capital increase: 1966 (1for 7 at par) ...... Allocatioii from the net earnings 1966 ...... Deceniber 31. 1966 ...... Allocation frorn the rict earriings 1967 ...... December 31. 1967 ...... Capital increase: 1968 (1 for 5 at 250) ...... Allocation from the net earnings 1968 ...... December 31. 1968 ...... Allocation froni the riet carnirigs 1969 ...... December 31. 1969 ...... Allocation from the net earnings 1970 ...... December 31. 1970 ...... Capital increase: 1971 (1 for 6 at 280) ...... Allocation from the net earnings 1971 ...... December 31. 1971 ...... Capital incrcase: 1972 (1 for 7 at 300) ...... Allocatiori from the net earriirigs 1972 ...... December 31. 1972 ...... Capital increase: 1973 (1 for 8 at 300) ...... Allocation froin the net earnirigs 1973 ...... December 31. 1973 ...... Allocation frorn the ~ietearniiigs 1974 ...... December 31. 1974 ...... Propoced capital increase: 1975 (1 for 4 at 350) ...... Position after capital increase 1975 ......

Development of Reserves Published reserves as peropening balance sheet of 1. 1.1952 ...... Allocatiori frorn the Coriversion Account ...... Allocations from net earnings ...... Premiiirn from the capital increases carried out ...... Premium frorn the proposed capital increase ...... Total published reserves ...... Report of the Supewisory Board

At the Supervisory Board meetings last year, and in TheTreuverkehr AG Wirtschaftsprüfungsgese~lschaft- nurnerous individual discussions, we obtained detailed Steuerberatungsgesellschaft, Frankfurt (Main), who reports concerniny the bank's situation and the basic were chosen as auditors of the annual accounts by the questions of business policy, and debated these togeth- Annual General Meeting, have exarnined the Annual er with the Board of Managing Directors. Apart frorn the Statement of Accounts, the Report of the Board of Man- development of the balance sheet and earnings the rnain aging Directors and the accounting and have found topics discussed were the money and currency these to be in conformity with the books, which were situation, questions concerning the interest rate struc- properly kept, and with the provisions of the applicablc ture and policy regarding conditions, the reorganisation law. We accept the Report of the Auditors. of the branch network, the shape of our range of serv- Furthermore, we have ourselves examined the State- ices in the future and the further expansion of our organ- ment of Accounts as of Decernber 31, 1974, the pro- isation abroad. The economic situation was the subject posed appropriation of profits and the Report of the of detailed reports and discussion. We also debated irn- Board of Managing Directors. We do not raise any portant individual busincss transactions and dealt with objections. those rnatters submitted to us for approval in accord- The Consolidated Annual Statement of Accounts, the ance with legal or statutory requirernents. Questions of Report of the Group and the Report of the Auditors of staff policy were likewise discussed by the Supervisory the Consolidated Annual Accourits have been submitted Board. to the Supervisory Board. The Credit Committee of the Supervisory Board exer- We have approved the Annual Statement of Accounts cised its powers of authorisation and called for rcports drawn up by Llie Board of Managiny Directors, which to be givcn at its meetings of all major loans or those en- has thus been established. We agree to the proposed tailing increased risks and discussed thern with the appropriation of profits. Board of Managing Directors.

Frankfurt (Main), April 1975

The Supervisory Board

Chairman Annual Balance Sheet as of Decem ber 31, 1974

Profit and Loss Account for the period from Janiiary 1 to December 31,1974

The Growth of the Balance Sheet from January 1,1952 until Decernber 31, 1974 Assets Deutsche Bank Aktiengcsnllschaft 31. 12. 1973 D M DM in 1,000 DM .

Cash in hand ...... 294,014,973.29 258,572 Balances with the Deutsche Bundesbank ...... 4,856,792,178.78 6,156,057 Balances on postal Cheque accounts ...... 32,307,806.30 13,607 Cheques on other banks, rnatured honds. interest and dividend coupons, and iterns received for collection ...... 406.866.441.59 418,334 Bills discounted ...... 4,741,709.259.95 3,456,804 including: a) rediscountable at the Deutsche Bundesbank . . DM 4,251,040,703.80 b) own drawings ...... DM 27.996.126.28 Claims on credit institutions a) payable on demand ...... 3,368.61 6,747.07 3,090,308 h) with agreed life, ur subject to agreed period of notice, of ha) less than three months ...... 2.1 24,933,510.53 1 ,I23,950 bb) at least three months, but less than four years ...... 4,855,532,355.79 3,148,577 bc) four years or longer ...... 71 6,982,441.58 780,619 11.06ö.065.054.97 8.1 43,454 Trcasury bills arid tliscoiiiitable Treasury bonds ...... -- E! - Bonds and dcbt instrurnents a) with a lifeof up to fouryears aa) of the Federal Republic and the Länder .. DM 214,173,666.24 ab) of credit institutions ...... DM 341,647,814.24 ac) others ...... DM 846,262.47 556,667,742.95 547,873 including: eligihle as collateral for Bundesbank advances DM 555,329,205.90 b) with a life of rnore than four years ba) of the Federal Republic and the Länder . . DM 189,065,637.70 bb) of credit institutions ...... DM 450,794.006.59 bc) others ...... DM 269,447,461.31 909,307,105.60 709,801 including : 1,465,974,848.55 1,257,674 eligible as collateral for Bundesbank advances DM 447,906,134.40 1 Securities, so far as they have not to be included in other iterns a) shares rnarketable on a stock exchange and investrnent fund cenificates 1,099,823,893.33 1.098.81 2 b) other securities ...... 23,374,864.15 cII1,105,6776,865 including: holdingsof rnore than one tenth of 1 .I 23,198,757.48 the sharcs in a joint stock corporation or min- ing company, excluding investrnents in sub- sidiariesand associated cornpanies ...... DM 865,831,275.69

Claims on custorners with agrecd life, or subject to agreed period of notice, of a) less than four years ...... 15.1 47,234,670.46 14,452,116 b) four years or longer ...... 8,146,668.593.63 E322.746.218,294,094 0 including: 23,293,903,264.09 ba) secured by rnortgages on real estate .... DM 767,160,458.26 bb) corntnurial loans ...... DM 126,878,804.10 due in less than fouryears ...... DM 4,667,061,000.-

Equalisütion and covering clairns on Fedcral and Länder aiithorities under the Currcticy Reform Laws ...... 402,137,011.13 422,344 Loans on a triist basis at third party risk ...... 61,257,009.66 64,422 Investments in subsidiariesand associated companies ...... 1,051,005,200.- 900,023 including: in credit institiitions ...... DM R96.378.300.- Land and buildings ...... 574,753,600.- 456,877

Office furniture and eqiiiprnent ...... - .... 169,233,900.- 158,606 Own Shares ...... 8,984,360.97 8,972 Par value: ...... DM 1,629,550.- Sundry assets ...... 779.539.1 20.68 695.1 28 Transitory itenis ...... 5,310,766.36 819

Total Assets 50,333,053,554.40 46,263,580

The assets and the riglits of recoursc iri rcspect of the liabilities shown below the liabilities side include a) claims oii associated companies ...... 2,236,629,220.66 2,097,271 b) clainis which ürise frnm credits falliriy under Article 15, paragraph 1, iterns 1 to 6, and paragraph 2, of the Banking Law, so far as they are iiot sliown in a) ...... 371,034,674.28 31 0,792 Balance Sheet as of December 31,1974 Liabilities ...... 31.12. 1973 D M D M D M in 1,000 DM

Liabilities to credit institutions a) payable on demand ...... 4,752,449,024.1 0 4,648,394 b) with agreed life, or subject to agreed period of notice, of ba) less than three months ...... 1,765,344,462.03 bb) at least three months, but less than four years . . 3,940,465,823 60 bc) four years or longer ...... 1,026,882,860.71 6,732,693,146.34 4,659,261 including: due in less than four years ...... DM 666,917.309.39 C) customers' drawings on credits opcried at other institutions ...... 545.545.724.78 245158 12,030,687,835.22 9,552,813 Banking liabilities to other creditors a) payable on demand ...... 9,545,394,854.29 18,381,126 b) with agreed life, or subject to agreed period of riotice, of ba) less than three months ...... 8,881,727,045 42 bb) at least threc months, but less than four years . . 1,829.496.739.48 bc) four years or longer ...... 204,220,265.87 10.9 15,444,050.77 12,752,351 including: due in less than four years ...... DM 96,739,251 -87 C) savings deposits ca) subject to legal period of notice ...... 6.61 2,508,341.44 cb) others ...... 6,831,374,830.93 13,443,883,172.37 11,957,415 33,904,777,077.43 33,090,892 Debt instruments with a life of --- 0 a) up to four years ...... b) more ttian four years ...... 528,280,000.- r-zq including: due in less 528,280,000.- 200,000 ttiari four years ...... DM 100,000,000.- Owii acceptances and promiscory notes iri circulation .. 33,987,097.81 33,315 Loans on a trust basis at third party risk ...... 61,257,009.66 64,422 Provisions for special purposes a) for pensions ...... 657,456,800 - b) others ...... 31 5,431,403.81 210,410 972,888,203.81 695,719

Sundry liabilities ...... 21,633,636.09 18,311 Franz Urbig and Oscar Schlittcr Eiidowment assets of the Endowment ...... 1,511,848.51 1,445 less investments insecurities ...... 1,400,348.21 1,414 111,500.30 EI31 Transitory items ...... 286,715,631.28 268,093 Special iterris including reserves a) in accordance with the Tax Law regarding Developing Countries ...... 5,691,076.24 4,577 b] in accordance with Article 6b of the Incornc lax I.aw 32.579.426.5fi 26,807 C) in accordance with the tax regulation regarding overall adjustmcrits ...... 41,500,000.- 79,770,502.80 LI31,384 Capital ...... 720.000,OOO.- 720,000 Published reserves a) statutory reservefund ...... 634,000,000.- 34,000 h) other rescrves (voluntary reservefund) ...... 825,000,000. - allocation from the year's net earnings ...... 30.000,OOO.-- special allocation from the year's riet cariiiiigs ...... 60.000,000: - 91 5,000,000.- 825,000 1,549,000,000.- EI1,459,000 Disposable prufit ...... 144,000,000.- 129,600

Total Liabilitics 50,333,053,554.40 46,263,580

Endorsement liabilities oii rediscounted bills of exchange ...... 501,910,337.98 714,686 Liabilities arising from guarantees of various kinds and warranty contracts ...... 3,007.1 63,497.26 6,081,442 Obligations to repiirchase iterns assigned en perisioii, so far as these obligations have not to be shown on the liabiliiies side ...... 1.1 72,266,060.1 6 689,503 Savings premiums under the Savirigs Premiiim Law ...... 41 8,194,366.32 334,998 Comprised arnong tlie liabilities are those (including those shown below the balance sheet) to associated companies ...... 888,273,324.43 1,217,006 for the period from January 1 to December 31,1974 Receipts

Interest and similar receipts froni lending and nioney rriarkel iraiisactions Current receipts from a) fixed-interest securities and debt register claims ...... b) otlier securities ...... C) investments in suhsidiariesand associated compariies ......

Coinmissionsand other receiptsfroniservicetransactions ...... Other receipts, including thosefrom the writirig back of provisionsfor possi- ble loan losses ...... Receipts from profit pooling agrecmenis, arid from agreerrients for lransfer and for partial transfer of profits ...... Receipts from the writing back of provisions for Special purposes, so far as they have not to be shown under "Other receipts" ...... Receipts from the writing hack of special iteriis iiicluding reserves

Total Receipts 4,930,282,565.25 3,966,751

According to our audit, carried out in accordance with our professional duties, the accounting, the Annual Statement of Accounts and the Board of Managing Directors' Report comply with German law and with the Company's Articles of Association.

Frankfurt (Main), March 21, 1975

Treuverkehr AG Wirtschaftsprüfungsgesellschaft Steuerberatungsgesellschaft

Dr. Nebendorf Fandre

Wirtschaftsprüfer Wirtschaftsprüfer (Chartered Accountant) (Chartered Accountant) The Growth of the Balance Sheet until December 31,1974

-in millions of DM-

Assets

Cash, balances with Deutsche Bundesbank and on postal cheque accounts ...... 5,183 6,428 5,138 3,717 2,763 Bills discounted ...... 4,742 3,457 3,743 3,877 4,095 Claims on credit institutions ...... 1 1.066 8,143 5,911 5,450 4,303 Treasury bills and discountable Treasury bonds .... 249 725 408 Bonds and debt instruments ...... 1,466 1,258 1,272 1,058 1,482 Securities, so far as they have not to be included in other items ...... 1,123 1,106 1,148 1,147 1,325 Claims on customers ...... 23,294 22,746 19,823 16,824 14,785 with agreed Iife, or subject to agreed period of notice, of a) less than four years ...... b) four years and longer ...... 1 6,541 1 1 5,892 1 Equalisation and covering claims on Federal and Län- der authorities ...... 402 422 443 462 481 Loans on a trust basis ...... 61 64 105 7 1 52 Investments in subsidiaries and associated cornpanies 1,051 900 773 590 534 Land and buildings ...... 57 5 457 389 332 345 Office furniture and equipment ...... 169 159 142 123 101 Other assets ...... 1,201 1,124 1.098 81 2 758 ...... -. .. .- Balance Sheet Total 50,333 46,264 40,234 35,188 31,432

Liabilities

Liabilities to credit institutions ...... Banking liabilities to other creditors ...... including: term deposits ...... savings deposits ...... Debt instruments ...... Own acceptances in circulation ...... Loans ori a trust basis ...... Provisions for Special purposes '...... a) for pensions ...... b) others ...... Capital ...... Published reserves ...... 1.549 1,459 1,274 1,064 a) statutory reserve fund ...... b) other reserves (voluntary reserve fund) ...... 1 1 :i, EI Other liabilities ...... 388 318 262 197 169 Disposable profit ...... 144 130 108 101 86 Balance Sheet Total 50,333 46,264 40,234 35,188 31,432

Endorsement liabilities on rediscounted bills of exchange ...... 502 71 5 1,432 780 640 Liabilities arising from guarantees of various kinds and warranty contracts ...... 9,007 6,081 4,406 4,387 4,185

Year's net earnings ...... 234 155 158 141 116 Allocations to published reserves ...... 90 25 50 40 30 Disposable profit ...... 144 130 108 101 86 Dividend in DM per share ...... 10.- 9.- 9.- 9.- 9.- Dividend in % ...... (20%) (18%) (18%) (18%) (18%)

') irii:luilirig receilits Irorii ttie appreciatiiiri in value of office furniture and equipment of DM 10 rn. ") includinq receirits frorn the appreciation in value of land and buildinqs of DM 35 m. - uniil 31. 12. 1967 aftel adjusirrient to thc new prescribecl forrri Report of the Group Deutsche Bank for 1974 Aklicrigcsellschatt Report of the Group for 1974

The following consolidated annual statement of ac- The assets and liabilities of Bankhaus Bernhard counts also includes Cornpagnie Financiere de la Deut- Blanke, Düsseldorf, which was consolidated as of De- sche Bank AG, Luxembourg. The Board of Managing Di- cernber 31, 1973, were transferred to Deutsche Bank AG rectors of Deutsche Bank AG pointed out at press confe- with effect frorn January 1, 1974. Otherwise the number rences held in Frankfurt (Main) and Luxembourg in the of consolidated companies remained unchanged against auturnn of last year that Deutsche Bank AG of Course the year before. feels fully responsible for its subsidiary, which it virtually The results of the following companies are hence in- wholly ownc. This close relationship was the reason for corporated in the consolidated annual statement of ac- incorporating the company in the Group. counts of Deutsche Bank Aktiengesellschaft as of Decernber 31, 1974: Proportion of capital held Berliner Disconto Bank Aktiengesellschaft, Berlin ...... Compagnie Financiere de la Deutsche Bank AG, Luxembourg ...... Deutsche Centralbodenkredit-Aktiengesellschaft, Berlin-Köln ...... Deutsche Gesellschaft für Fondsverwaltung mbH, Frankfurt (Main) ...... Deutsche Kreditbank für Baufinanzierung AG, Köln ...... Deutsche Gesellschaft für Immobilien-Leasing mbH, Köln ...... Deutsche Ueberseeische Bank, Berlin-Harnburg ...... Frankfurter Hypothekenbank, Frankfurt (Main) ...... Gefa Gesellschaft für Absatzfinanzierung mbH, Wuppertal ...... Efgee Gesellschaft für Einkaufs-Finanzierung rnbH, Dusseldorf ...... Gefa-Leasing GmbH, Wuppertal ...... Saarländische Kreditbank Aktiengesellschaft, Saarbrucken ...... Hessische Immobilien-Verwaltungs-Gesellschaft mbH, Frankfurt (Main) ...... Matura Vermögensverwaltung mbH, Düsseldorf ...... Süddeutsche Verrnögensverwaltung GmbH, Frankfurt (Main) ...... Elektro-Export-Gesellschaft rnbH, Nürnberg ...... Trinitas Vermögensverwaltung GmbH, Frankfurt (Main) ......

The following rnembers of the Group have not been Deutsche Vermögensbildungsgesellschaft mbH, included in the consolidated Statements because of their Bad Homburg V. d. Höhe small importance (altogether they account for DM 117 rn. DIL Deutsche Gesellschaft für Bauplanung und = 1.50/00of the Group's balance sheet total): -beratung mbh, Köln DIL Deutsche Gesellschaft für Immobilien-Mietkauf "Alwa" Gesellschaft für Vermögensverwaltung mbH, mbH, Köln Hamburg DIL Grundstücksgesellschaft für Verwaltungs- und Burstah Verwaltungsgesellschaft rnbH, Hamburg Lagergebäude mbH, Köln Castolin Grundstücksgesellschaft mbH, Köln Essener Grundstücksverwertung Dr. Ballhausen, CGT Canada Grundbesitz Treuhand GmbH, Dr. Bruens, Dr. Möller KG, Essen Frankfurt (Main) Frankfurter Gesellschaft für Vermögensanlagen mbH, Deutsche Beteiligungsgesellschaft mbH, Frankfurt (Main) Frankfurt (Main) Gefi Gesellschaft für Finanzierungsvermittlung mbH, Deutsche Canada-Grundbesitzverwaltungsgesellschaft Berlin rnbH, Frankfurt (Main) Grundstücksgesellschaft Grafenberger Allee rnbH, Deutsche Gesellschaft für Anlageberatung mbH, Köln Frankfurt (Main) Grundstücksgesellschaft Otto-Hahn-Strasse mbH, Köln Hochhaus und Hotel Riesenfürstenhof The results of the following foreign members of the Aufbaugesellschaft mbH, Frankfurt (Main) Group have not been incorporated: Hypotheken-Verwaltungs-Gesellschaft mbH, Berlin IZI Bielefeld Informations-Zentrum Immobilien GmbH, Compahia de Mandatos lnmobiliaria y Financiera Bielefeld S.A., Buenos Aires IZI Dortmund Informations-Zentrum Immobilien German American Capital Corporation, BaltimorelUSA GmbH, Dortmund IMOBAL Imobiliaria e Administradora Ltda., Sao Paulo Jubiläumsstiftung der Deutschen Ueberseeischen B.V. Matura Handelmaatschappij, Amsterdam Bank GmbH Unterstützungskasse, Hamburg Societe d'Exploitation Fonciere Rebus S.A., Hcinz Langer Versicherungsdienst GmbH, Stuttgart Luxembourg Nordhamburgische Bauträgergesellschaft mbH, Hamburg Nordwestdeutscher Wohnungsbauträger GmbH, With regard to the associated companies belonging to Braunschweig the Group we report as follows: Saarländische Immobilien-Gesellschaft mbH, Saarbrücken Berliner Disconto Bank AG, Berlin, conducts all the SB-Bauträger GmbH, Frankfurt (Main) banking operations of an all-round bank; it is represent- SB-Bauträger GmbH & Co. Urbis Verwaltungs-KG, ed in Berlin by 69 branches. The balance sheet total rose Frankfurt (Main) in the year under review by 13.5%. At DM 3,332 m. it SB-Bauträger GmbH & Co. Urbis Hochhaus-KG, passed the DM three billion mark for the first time. A Frankfurt (Main) higher dividend of 16% will be paid out of the net earn- Schisa Grundstücksverwaltungsgesellschaft mbH, ings of DM 12.98 m.; DM 4.5 m. will be employed to Köln strengthen the published reserves. Süddeutsche Bank GmbH, Frankfurt (Main) Berliner Disconto Bank AG has leased the banking Tauernallee Grundstücksgesellschaft mbH, Berlin premises in Otto-Suhr-Allee 6/16, Berlin 10, from Trinitas Terraingesellschaft Gross-Berlin GmbH, Berlin Vermögensverwaltung GmbH, Frankfurt (Main). Normal Franz Urbig- und Oscar Schlitter-Stiftung GmbH, banking relations are maintained with the other mem- Düsseldorf bers of the Group.

Lisred below are Eerman-based associated companies Compagnie Financiere de la Deutsche Bank AG, Lux- which are not under the uniform direction of Deutsche embourg, successfully ended its fourth financial year as Bank AG and hence are not eligible for consolidation: well (on September 30, 1974). It engages mainly in mon- ey dealings with banks and in international lending busi- Deutsche Eisenbahn Consulting GmbH, ness. Frankfurt (Main) Although market conditions were generally more diffi- Deutsche Gesellschaft für Anlageverwaltung mbH, cult, the volume of business rose by 39.3% to the equiv- Frankfurt (Main) alent of DM 5.8 bn. This new expansion was primarily Exportkreditbank AG, Berlin due to the growth in the volume of credit by 91.6% to Kistra Beteiligungsgesellschaft mbH, Frankfurt (Main) DM 3.5 bn. The bank again devoted itself principally to Rossma Beteiligungsgesellschaft mbH, establishing and managing international syndicates for Frankfurt (Main) medium and longer-term financing. After the heavy in- crease in the year before, interest arbitrage business did Deutsche Bank AG only maintains those business re- not grow any more. lations with these associated compariies which are nor- The favourable development continued in the first mal with bank customers. There are no business trans- months of the new financial year. After the critical signs actions capable of materially affecting the Deutsche which appeared on the Euro-market in 1974, prospects Bank's situation to be noted in conncction with these of the international finance markets are now appraised companies. with more confidence. DM 23 m. out of the profit was allocated to the re- 1,569 m. With a capital of DM 42 m. the bank's own serves to strengthen the bank's own funds further. Capi- funds are shown unchanged at DM 60.7 m. as at the end tat and published reserves now total L. Francs 1,479 m. of 1974. The bank will refrain from paying a dividend and (= C. DM 100 m.). use the net earnings to strengthen the inner reserves. Its wholly-owned subsidiary, Deutsche Gesellschaft Deutsche Centralbodenkredit-AG, ßerlin-Köln, as für Immobilien-Leasing mbH, Köln, engages in the fi- a rnortgage bank conducts all the business allowed un- nancing of administrative buildings, department Stores, der the Private Mortgage Banks Law in the Federal Re- factory buildings, warehouses, and other real pro- public and West Berlin; this cornprises especially the perty against leasing receipts. Demand in this sector has granting of mortgage and communal loans as well as the risen in spite of the general decline in business activity. issuing of mortgage and communal bonds. The bank Deutsche Gesellschaft für Immobilien-Leasing mbH was able in 1974 to expand its lending and borrowing holds all the shares of: business more strongly by cornparison with the pre- DIL Deutsche Gesellschaft für Bauplanung und vious year, although conditions in the year reviewed did -beratung mbH, Köln not always favour expansion; this applies especially to DIL Deutsche Gesellschaft für Immobilien-Mietkauf the financing of housing construction. The balance sheet mbH, Köln total rose by DM 1,152 m. (or 17.8%) to DM 7,608 m. DIL Grundstücksgesellschaft für Verwaltungs- und (1973: DM 627 m. or 10.8%). Out of the net earnings of Lagergebäude mbH, Köln DM 28.0 m., DM 13.5 m. was allocated to the published Grundstücksgesellschaft Grafenberger Allee mbH, reserves. At the Shareholders' Meeting it will be pro- Köln posed to transfer another DM 4.0 m. to the legal re- Grundstücksgesellschaft Otto-Hahn-Strasse rnbH, Köln serves. As a result the bank's own funds will total DM Schisa Grundst~~cksverwaltungsgesellschaftmbH, 21 1.7 m. Kol n It has also a controlling interest in Castolin Grund- A dividend of DM 10 per share of DM 50 par value is stücksgesellschaft mbH, Köln, and Societe d'Exploita- planned for the 1974 financial year. tion Fonciere Rebus S.A., Luxembourg.

Deutsche Gesellschaft für Fondsverwaltung mbH Deutsche Ueberseeische Bank, Berlin-Hamburg, in (DEGEF), Frankfurt (Ma~n),rnanages individual invest- CO-operationwith Deutsche Bank AG and other banks of ment funds of institutional investors, such as insurance the Group, is chiefly engaged in financing foreign trade. companies, cornpany pension and welfare trusts, pro- Besides the central office in Hamburg and the branch in fessional old-age pension schemes and those organised Berlin, the bank operates three other branches in the by associations as well as other institutional investors Federal Republic. Abroad it maintains legally dependent and staff funds. The number and total assets of the spe- branches in Buenns Aires (Argentina), (with a sub- cial funds established continued to rise. The assets of 64 branch in Rosario, Province of Santa Fe, and ten munici- funds totalled DM 1.0 bn. as at the end of 1974. The com- pal branches in the greater Buenos Aires area), Säo Pau- pany increased its capital by DM 0.2 m. to DM 1.6 rn. lo (Brazil), Asuncion (Paraguay), as well as in Tokyo (Ja- from the reserves and paid a dividend again of 8% on pan) and Luxembourg. this higher capital for the 1973/74 financial year. Of the six foreign representative offices in Central and South America five are operated jointly with Deutsche The declining trend in the building and construction Bank AG. market substantially affected business of Deutsche Kre- Authorised capital of DM 20.0 m. was created in the ditbank für Baufinanz~erungAG, Köln, which special- year reviewed. The balance sheet total rose from DM ises in the financing of housing construction. As a re- 1,406 m. to DM 1,759 rn. Out of the net earnings of DM sult of the fall in demand for the respective loans and the 4.7 m. a dividend of DM 4 per DM 50 share is to be paid reserve the bank exercised last year in granting loans, on the capital of DM 40.0 m. After allocation of DM the volume grew less rapidly in the year under review. 1.5 m. to the other reserves. the bank's own funds The balance sheet total increased only negligibly to DM amount to DM 59.5 m. of the situation atid scope for small and medium-sized enterorises are available to the entrepreneur.

Three exarnples illustrate the pririciple:

Cnpitnl rcquircrl for structurnl changc

A participation iri this firm (turnover DM 14 m.), which was originally a trad- ing and assembly entcrprise for syn- thetic sections in the building industry (top picture), was acquired by the Dcutsche Beteiligutigsgesellschaft mbH first of all to help strengthen the capital to pertiiit further growth. Later it helped in overcoming the structural change from a trading firm to a productiori plant by participating in a capital in- crease.

Capital basis for further growth

The founder of this profitable and finan- cially sound cntcrprise manufacturer of components for air-conditioning and ventilation Systems (middle picture) - took the compariy ori as a capital-provi- ding Partner at a time when the firm's turnover was DM 36 m. The participa- tiori was intetided to strengthen the fin- ancial basis for expected further growth. In the meantime the firm has achieved anriual turnover of about DM

Soluriorl to problern of a successor

The founder of this enterprise (produc- tion of special fittings for furniture, DM 12 m. turnover; bottom picture), who did not tiave a successor, transferred the management and a share of the capital to a manager with expericnce in the industry, retaining for himself a mi- nority share, and assumed the position of chairman in the newly fortned advi- sory council. This solution, which en- sured the continuity of an indcpendcnt firni, was made possible by the fact that the company also acquired part of ttie capital. The bank is the sole partner of Jubiläumsstiftung of The combined balance sheet total of Gefa and its sub- the Deutsche Ueberseeische Bank GmbH Unterstut- sidiaries rose from DM 889 m. to DM 1,009 m. in the year zungskasse, Hamburg. under report.

Frankfurter Hypothekenbank, Frankfurt (Ma~n),en- The capital of Saarländische Kreditbank AG, gages in all the banking business conducted by a mort- Saarbrücken, is held jointly by Deutsche Bank AG and gage bank; it is the oldest and biggest private mortgage the French banking group Credit Industrie1 et bank. It is active throughout the Federal territory and Cornmercial, the latter with 23.26%; C. 19% of this is at- West Berlin. In addition cornmunal loans are granted in tributable to Credit Industrie1 dfAlsace et de Lorraine. the EC area. The increase in the balance sheet total by The bank maintains 19 branches in the Saarland. It en- 13.3% to DM 10,772 rn. (+7.0% in the previous year) gages in all ordinary banking business. The balance was rnainly due to the granting of communal loans, sheet total rose by DM 40.0 m. (or 5.0%) to DM 839.3 m. whereas lendings in mortgage business lagged behind A dividend of 12% (10% a year ago) is to be paid on the those of the year before. capital of DM 20 m. The capital is DM 63.4 m. After allocating DM 12.5 m. The Saarländische Kreditbank has rented its bank frorn the 1974 net earnings. the published reserves are premises from Deutsche Bank AG. Further developed shown at DM 251.4 rn. A further DM 5.0 m. is to be add- property has been placed at its disposal by its subsidi- ed to the reserves by resolution of the Shareholders' ary, Saarlandische Immobilien-Gesellschaft mbH, Saar- Meeting. Own funds thus total DM 319.8 m. A dividend brücken. There is a profit and loss transfer agreement of DM 10 per share of DM 50 par value (DM 9 a year dgo) between the two companies. is to be paid for the 1974 financial year. The Frankfurter Hypothekenbank holds the shares of Hessische Immobilien- Verwaltungs-Gesellschaft mbH, Frankfurter Gesellschaft für Vermögensanlagen mbH, Frankfurt (Main), owns buildings and land. The build- Frankfurt (Main). The latter controls 95% of the capital ings, among thern the training centre at Kronberg, have of Hochhaus und Hotel Riesenfürstenhof Aufbauge- for the rnost Part been rented to Deutsche Bank AG. sellschaft rnbH, SB-Bauträger GmbH, SB-Bauträger GmbH & Co. Urbis Verwaltungs-KG and SB-Bautrager Matura Vermögensverwaltung mbH, Düsseldorf, and GmbH & Co. Urbis Hochhaus-KG, all of Frankfurt (Main), Süddeutsche Vermögensverwaltung GmbH, Frankfurt and 75% of the capital of Nordharnburgische Bauträger- (Main), manage assets for their own and third account. gesellschaft rnbH, Hamburg. Elektro-Export-GmbH, Nürnberg, whose sole partner is Süddeutsche Vermögensverwaltung GmbH, finances Gefa Gesellschaft für Absatzfinanzierung mbH, Wup- the export of electrical engineering products. pertal, and its subsidiaries - Gefa-Leasing GmbH, Wup- pertal, and Efgee Gesellschaft für Einkaufs-Finanzierung Trinitas Vermögensverwaltung GmbH, Frankfurt rnbH, Düsseldorf - cornplernent the Services offered by (Main), rnanages property for its own and third account the Deutsche Bank with special types of financing. in West Berlin jointly with its subsidiary, Tauernallee These include medium-terrn financing of capital and Grundstücksgesellschaft mbH, Berlin. The property is consumer goods, leasing and factoring. rented for the rnost Part to Berliner Disconto Bank AG There are profit and loss transfer agreernents be- and its ernployees. The loss of DM 0.1 m., which was in- tween Gefa rind its two subsidiaries. curred in the 1974 financial year, was taken over by Moreover, Gefa wholly owns Gefi Gesellschaft für Fi- Deutsche Bank AG under the existing profit and loss nanrierungsverrnittlung rnbH, Berlin, and Heinz Langer transfer agreement. Versicherungsdienst GmbH, Stuttgart. Early in 1974 Gefa's capital was increased by Among the non-consolidated cornpanies abroad the DM 12 m. to DM 30 m. After allocation of DM 2 m. to German American Capital Corporation, Baltimore, USA, published reserves, DM 7.2 rn. was transferred to rnay be rnentioned. It holds the participations in the Eu- Deutsche Bank AG under the existing profit and loss ropean-American Banking Corporation, New York (nom. transfer agreernent. US$ 3.8 m. or 20.1%) and the European-American Bank & Trust Cornpany, New York (norn. US$ 11.0 m. or Volurne of business 18.4% ). The volume of business of the Group (balance sheet Transactions between the companies of the Group total and endorsement liabilities) was DM 79.4 bn. at the were conducted at market conditions. end of 1974 against DM 67.2 bn. as of December 31, 1973. lncluding Compagnie Financiere de la Deutsche The contribution of Deutsche Bank AG to the Group's Bank AG the comparable figure Comes to DM 71.4 bn., balance sheet total (before consolidation) is 60.6% fol- which represents a growth of DM 8.0 bn. or 11.2% in lowing 66.0% in the year before. The two mortgage 1974. banks account for 22.1%, the other credit institutions At DM 78.7 bn., the consolidated balance sheet total 16.8%; the rernaining 0.5% is contributed by leasing exceeds the balance sheet total of Deutsche Bank AG by and managing cornpanies. The Group's Course of busi- DM 28.4 bn. ness was again largely determined by the business trend of Deutsche Bank AG and the mortgage bank sub- sidiaries. Liquidity At the end of 1974 the consolidated companies em- The cash liquidity ratio (DM 5.6 bn. cash reserve in re- ployed a staff of 40,578 (including 3,713 part-time em- lation to the total liabilities, excluding long-term mort- ployees). The Group's banking institutions maintained gage bank business, of DM 56.8 bn.) was 9.9% on bal- 1,269 branches (1,255 at the end of the preceding year). ance sheet date. The Group's total liquid assets (cash reserve, items re- The consolidated annual statement of accounts was ceived for collection, bills rediscountable at the Bundes- drawn up on the Special sheets published for credit insti- bank, dernand claims on other credit institutions, Treas- tutions with the legal form of an Aktiengesellschaft ury bills and discountable Treasury bonds, and bonds (public Iimited company) and for mortgage banks. We and debt instruments eligible as collateral for Bundes- offer the following comments: bank advances) were DM 15.5 bn. as of December 31, 1974. In per Cent of the liabilities mentioned, this corre- Consolidated Balance Sheet sponds to a total liquidity ratio of 27.2%.

The valuations of the individual balance sheets were taken over unchanged in the consolidated balance Securities sheet. An interim statement of accounts prepared for Cornpagnie Financiere de la Deutsche Bank AG, Luxern- Bonds and debt instruments are shown at DM 1.8 bn. bourg, was converted at the rate of DM 1 = L. Francs DM 1.5 bn. of the total amount, or 80%, is eligible as col- 15.0025. According to the share held, the book values of lateral at the Deutsche Bundesbank. the participations in cornpanies included in the consoli- The debt instrurnents of Deutsche Centralboden- dated staternent were offset against their own funds kredit-AG and Frankfurter Hypothekenbank held by the (capital and published reserves). The difference on bal- Group totalling DM 553 rn. are shown separately as debt ance of DM 124.2 m. is shown as reserve arising from instruments issued b y members of the Group. consolidation; it is a form of capital. The DM 41.5 m. in- Other securities appear on the balance sheet at DM crease in the reserve arising from consolidation against 1,128 rn., DM 1,103 m., or 97.8%. of which are invest- the last consolidated staternent of accounts is attributa- ment certificates and shares rnarketable on a stock ex- ble to allocations to reserves effected by members of the change. DM 866 m. of the total amount are shares repre- Group in addition to the incorporation of our Luxem- senting more than 10% of the capital of a company. bourg subsidiary. 32,591 own shares shown with a book value of DM 9 Claims and liabilities between members of the Group m. were acquired by Deutsche Bank AG with the inten- were not shown. tion of offering them for sale to its employees. The strict minimum value principle was applied for the Fixed assets valuation of the securities holdings. Of the total arnount of land and buildings of DM 776 m. 84% is property that is used for banking purposes. Total credit extended Another DM 112 rn. of this arnount Covers property rent- ed out by the Deutsche Gesellschaft für Immobilien- The Group's total credit extended was DM 55.8 bn. at Leasing or to be rented out after completion. the end of 1974. Its composition is shown in the table Office furniture and equipment totalling DM 357 m. below; to allow for a truer comparison, the figures as at also includes movable equipment of Gefa-Leasing the end of 1973 have been adjusted to include those of GmbH at DM 173 m. which is rented out. the Luxernbourg subsidiary. Accordingly, the expansion The Group's funds from outside sources were DM 73.3 of total credit extended in 1974 was DM 5.9 bn. or bn. on balance sheet date; its cornposition is shown in 11.8%; it was rnainly brought about by the increase in the table overleaf giving the comparable figures as of claims in respect of long-term mortgage bank loans, December 31, 1973 including our Luxernbourg subsidi- which is worth noting in view of the unfavourable condi- ary. Of the increase of DM 7.5 bn., or 11.4%, deposits tions. frorn banks account for DM 3.4 bn., custorners' deposits for DM 1.2 bn. and debt instruments and long-term loans Moreover, the Group's banks rnade guarantees and taken up in rnortgage bank business for DM 2.8 bn. letters of credit arnounting to DM 9.5 bn. available to With regard to non-bank custorners' deposits, which their clients. rose by DM 1.2 bn., or 3.4%, the gratifying increase in Allowance has been rnade, through higher adjust- savings deposits at the commercial banks of DM 1.7 bn., ments and provisions, for all discernible risks of the or 12.5%. should be rnentioned. The large arnount of lending business. In addition to this the consolidated term deposits was reduced by DM 1.6 bn. in 1974. credit institutions have made the prescribed overall ad- The mortgage banks' circulation of debt instruments justments. rose by DM 2.3 bn. or 17.1%; another DM 0.3 bn. of the

Total credit extended End of 1974 End of 1973 -in millions of DM - in rnillions of DM -

Discounts ...... 6,301 1 11.3% 5,111 - 10.2% - Lendings to credit institutions ...... 2,089 = 3.7% 1,756= 3.5% Claims on non-bank customers short and medium-term claims .... 19,634 = 35.2% 18,152 = 36.4% long-term claims ......

Long-term claims in mortgage bank business, including interest ...... Total credit extended ......

Investments in subsidiariec and ascociated companies increase is attributable to debt instrurnents of Deutsche Bank AG. Holdings of the Group in non-consolidated companies are shown at DM 358 rn., including DM 198 m. participa- The rise in bank deposits by DM 3.4 bn. is partly tions in credit institutions. The item as a whole corn- matched on the assets side by higher funds invested. prises rnainly direct and indirect rninority interests in Funds taken up for specific purposes were passed on foreign-based credit institutions. to the borrowers on the conditions fixed by the lenders. Funds from outside sources End of 1974 End of 1973

Liabilities towards credit institutions demand deposits ...... DM 4,829 m. = 6.6% DM 4,882 m. = 7.4% term deposits ...... DM 12,246 m. = 16.7% DM 9,006 m. = 13.7% customers' drawings on credits opened at other institutions ...... DM 464 m. = 0.6% DM 21 1 m. = 0.3% DM 17,539 m. = 23.9% DM 14,099 m. *.. 21.4%

Liabilities towards non-bank customers demand deposits ...... DM 10,460 m. = 14.3% DM 9,246 m. = 14.0% term deposits ...... DM 12,724 m. = 17.3% DM 14,359 m. -e 21 -8%

savings deposits ...... DM 14,964 m. = 20.4% DM 13,298 m. T- 20.2% DM 38,148 m. = 52.0% DM 36,903 m. = 56.0%

Debt instruments issued (including debt instruments deliverable) DM 16,517 m. = 22.5% DM 13,854 m. = 21 .I % Long-tsrm loans taken up in mortgage bank business ...... DM 792 m. - 1.1% DM 724 m. = 1.1% Interest ...... DM 345 m. = 0.5% DM 275 m. = 0.4% DM 17,654 m. = 24.1% DM 14,853 m. -. 22.6% Total funds from outside sources ...... DM 73,341 m. = 100% DM 65,855 m. = 100%

Consolidated companies have secured loans taken up to ties towards associated companies shown below the the sum of DM 28.6 m. by mortgages on real estate. balance sheet refer to companies that are not included lncluded under liabilities towards credit institutions is in the consolidated accounts. DM 0.8 m. and under liabilities towards other creditors arising from banking business DM 170.5 m., which were deposited by banks and customers with the branch of Deutsche Ueberseeische Bank in compliance with Ar- Consolidated Profit and Loss Account gentina's regulations on Peso deposits. The consolidated profit and loss account incorporates the expenses and receipts shown in the individual state- Contingent Iiabilities, comments ments of accounts of the consolidated companies. Re- ceipts for inter-Group services, almost exclusively inter- The Group's endorsement liabilities on rediscounted est and commissions, were offset against the corre- bills amounted to DM 710 m. on balance sheet date. Bills sponding expenses. Receipts during the year under re- outstanding for collection totalled DM 174 m. view from holdings in member companies of the Group, Liabilities arising from guarantees of various kinds which represent distributions from the 1973 profits, and warranty contracts were shown at DM 9,456 m. 0b- were included under profit brought forward. ligations to repurchase items assigned en pension stood The increase in the number of consolidated compa- at DM 1,200 m. as of December 31,1974. nies should be taken into consideration, when a compar- Liabilities for possible calls on shares in public and ison is made with the figures for the preceding year private limited companies not fully paid up amounted to which have not been adjusted in the profit and loss ac- DM 31.4 m. as at the end of 1974. Coupled with the Count. shareholding in Liquiditäts-Konsortialbank GmbH is a continyent liability for other partners' obligations to pay Earnings on the volume of business up further capital when called, in addition to the Group's own obligation up to DM 49.5 m. By comparison with the previous year - the figures Liabilities towards consolidated companies have not below are given including those of our Luxembourg sub- been included in the above items. Claims on and liabili- sidiary - the earnings on balance are as follows: 1974 1973 Staff and material expenditure - in millions - in rnillions ~f DM - of DM - Interest and similar receipts The Group's staff expenses totalled DM 1,450 ni. iri from lending and money the past year, salaries and wages accounting for market transactions ...... 5,013 3,880 DM 1,029 m., compulsory social security contributions Current receipts from for DM 123 m. and expenditurc on retirement pensions securities, debt register claims, arid other benefits for DM 298 m. Salary rises and con- and investments in subsidiaries and associated companies 298 5,311 295 4,175 siderably higher allocations to the provisions for lnterest and sirnilar expenses 3,368 23 pensions, caused by the change from current value to 1,943 1,356 the higher Part value method in the banks' scheme for lnterest earned in mortgage prospective pensioners, may be cited as the main rea- bank business ...... 1,138 979 sons for the increase against the previous year's ex- lnterest paid in mortgage bank pcnditure. business ...... 1,054 84 939 40 Material expenditure for the banking business Earnings on the volume of amounted to DM 332 m. business (interest surplus) 2,027 1,396 .- .- The expansiori in the volume of the Group's commer- cial banks was smaller than in the year before. Owing to Other expenses more favourable developments at the mortgage banks and an improvement in the interest rnargin at the com- Depreciarion on land and buildings, and on office fur- mercial banks, which was pritnarily due to a normalisa- niture and equipment arose in the amount of DM 105 m. tiori of market conditions and credit relaxations, earn- The Group had to pay taxes to the sum of DM 305 m., ings on the volume of business increascd by 45.2% DM 291 m. of which are taxes on earnings and property. Not accounted for here is DM 9.0 m. additional tax ori Earnings on services dividends distributable in 1975 by member companies. Neither were extra expenses of DM 2.4 m. shown by two Commissions earned (DM 529 m.) less commissions companies in accordance with 5 170 subpara. 2 Stock paid (DM 15 m.) give a surplus of DM 514 m. for 1974. Corporation Act included in this amount. This is an iricrease of DM 62 m., or 13.7%, over the ad- justed comparable figure for the previous year. A strong increase in earriings in international business has mate- Profit, capital and reserves rially contributed to this result.

With total receipts of DM 7,380.5 m. and total expen- Other receipts Ses of DM 7,060.1 m. the Group's net earnings for the year stand at DM 320.4 m. DM 124.2 m. was allocated to Non-recurrent receipts from the mortgage banks' is- the published reserves (DM 34.2 m. by siibsidiaries). DM sue and loan business are shown at DM 87 m., whereas 7.8 m. is attributable to outside shareholders. lncluding the corresponding non-recurrent expenses amount to the DM 32.3 m. profit brought forward, the resulting DM 90 m. profit of the Group is DM 220.7 m. Otherreceipts totalling DM 295 m. Cover receipts from ordinary and extraordinary business which cannot be in- As per December 31, 1974, the Group's own funds are corporated under other items irisofar as thcy do not as follows: have to be offset according to present regulations in the individual member companies' accounts against depre- Capital ...... DM 720.0 m. ciation and adjustmerits ori claims and securities, and Published reserves ...... DM 1,549.0 in. against allocations to provisions for possible loan loss- Reserve arising from consol~dat~on.. DM 124.2 rn. es. Total ...... DM 2,393.2 tri. - . - Outside shareholders of Deutsche Centralboden- for DM 130.9 m. of the own funds; this is shown, togeth- kredit-AG, Deutsche Kreditbank für Baufinanzierung AG, er with the outside share in the profits of DM 7.8 m., as Deutsche Ueberseeische Bank, Frankfurter Hypo- compensatory item for shares held by others. thekenbank and Saarländische Kreditbank AG account

Frankfurt (Main), March 1975

Deutsche Bank Aktiengesellschaft

The Board of Manaying Directors

Burgard Christians Ehret

Feith Guth Herrhausen Kleffel

Leibkutsch Mertin Thierbach

Ulrich Vallenthin van Hooven Consolidated Balance Sheet as of December 31, 1974

Consolidated Profit and Loss Account for the period from January 1 to Decernber 31,1974 Assets Deutsche Ba nk Aktiengesellschaft - 31. 12. 1973 D M D M in 1,000 DM

Cash in hand ...... , .. .. ., ,. 329,846,849.67 286.226

Balances with the Deutsche Bundesbank ...... 5,256,892,246.49 6,713,291

Balances on postal cheque accounts ...... 38,430,740.84 21,565

Cheques on other banks, matured bonds, intcrest and dividend coupons and items received for collection ...... 420,260,329.64 423,340

Bills discounted ...... 5,299,723,175.44 3,975,019 including: a) rediscountable at the Deutsche Bundesbank . . .. DM 4,539,100,822.58

Li) own drawings ...... DM 92,751,298.13

Claims on credit institutions

a) payable on demand ...... 3,354.710,843.33 3,048,558 b) with agreed life, or subject to agreed period of notice, of ba) less than three months ...... 2,234,797,687.19 1,017,858 bb) at least three months, but less than four years ...... 6,423,093,395.51 2,985,327 I~c)four years or lnnger ...... 885,078,804.50 457,929 including: 12,897,680,724.53 7,509,672 used as cover in mortgage bank business ...... DM 85,000,000.- LI

Treasury hills and discoiititable Treasury borids ai of the Fcderal Republic and thc Länder ...... 45,468.819.45 16,591 b) others ...... , ...... 3,364,962.36 EI6,598 48,833,781.81 23,189 Bolids and debt instrumetits a) with a life of up to four years aa) of the Federal Republic and the Länder . . . . DM 355,774,374.58 ab) of credit institutions ...... DM 364,677,057.58 ac) others ...... DM 8,558,381.97 729,009,814.13 753,185 including: eligible as collateral for Bundesbank advances . . . . DM 717,833.157.58

used as cover in mortgage hank business . . . . DM 114,134,250- b) with a life of more than four years La) of the Federal Repuhlic and the Länder . . . . DM 379.639.811.52 bb) of credit institutions ...... DM 404,936.227.23 bc) others ...... DM 332,056.26368 1,116,632,302.43 944.787 including: 1,845,642,116.56 1,697,952 eliyible as collateral for Bundesbank advances . . DM 759,724,571.78 userl as cover in mortgage bank business ...... DM 106,213,923.36 1

Seciirities, so far as they have not ro be included in other items a) shares rnarketable on a stock exchange and investment furid certificates ...... , . . . , ...... , . . . 1,103,387,357.57 1 ,I 02,009 L) othcr seciirities ...... , . . . 24,975,631.07 Ezl10,725 including: holdinys of rnore than one tenth 1.1 28,362,988.64 1,112,734 of the shares in a joint stock corporation or mining company, excluding investments in subsidiariesand associated companies ...... DM 866,428,729.37

carried forward 27,265,672,953.62 21,762,988 Consolidated Balance Sheet as of December 31,1974 Liabilities

31. 12.1973 D M DM DM in 1,000 DM

Liabilities to credit institiitions a) payablc ori demand ...... 4,828,787.1 22.61 4,495,787 b) with agreed life,or subject to agreed period of notice, of ba) less than three months ...... 3,080,066,215.77 hb) at least three months, but less than four years .. 7,810,305,948.28 bc) four years or longer ...... 1,356,121,945.10 12,246,494.109.15 5,633,896 including: diie in less than four years ...... DM 815,957,393.10

C) ~ust~rner~'drawings ori credits opened at other institutions ...... 464,369,463.84 274,583 17,539,650,695.60 10,404,266

Banking liabilities to other creditors 1 a) payable on demand ...... 10,459,734,139.10 9,228,806 b) with agreed life, or subject to agreed period of notice, of ba) less than three rnonths ...... 9.91 1,432,765.04 bb) at least three rnonths. biit less than four years .. 2.590.142.453.53 bc) four years or loriyer ...... 222,804,702.15 12,724,379.920.72 13,97 1,828 including: due in less than four years ...... DM 102,932,988 81 C) savings deposits ca) subject to legal period of notice ...... 7,541,505.385 79 cb) others ...... 7,421,916,121 12 14,963,421,506.91 13,298,112 38,147,535,566.73 36,498,746

Debt instruments with a life of 1 a) up to four years ...... -- b) mure than four years ...... 528,280,000.- 200,000 IIl200,000 including: due in less 528,280,000.- than four years ...... DM 100,000,000. -

Debt instrurnents issiied hy the rnortgage banks a) mortgage bonds ...... 8,670,460,769.58 7,963,855 including: registered bonds ...... DM 1,443,510,473.38 b) communal bonds ...... 6,501,491,536.67 5,477,612 including: registered tionds ...... DM 1,929,798.656.97 C) ottier debt instruments in accordarice with Article 5, para. 1 itern 4c of the Mortgago Bank Law ...... 180,000,000.- d) bonds drawn and called for redemption ...... 57 1,944.39 13,441,955 15,352,524,250.64 including: 1 tofall due in Iess tlian foiir years or to be taken back ...... DM 2,715,549,138.14 further: registered borids handed to lender to secure loaiis taken iip .... DM 278,727,306.51 and registered communal bonds ...... DM 214,784,037.84

Debt instruriients deliverable ...... 636,652,975.83 212,395

carried forward 72,204,643,488.80 60,757.362 Assets Consolidated Balance Sheet

31 . 12.1973 D M D M in 1. 000 DM

carried forward 27.265.672.953.62 21.762. 988 Claims on custorners wiih agreed life. or subject to agreed period of notice. of a) less thari fnur years ...... 19.633.643.537.1 0 17.608.642 including: used as cover in rriortgage bank business ...... DM 207.271.050.74 b) four years or longer ...... 11.224.860.815.99 9.477. 388 includiiig: 30.858.504.353.09 27.086. 030 ba) seciired by mortgages on real cstate ...... DM 809.844.526.38 LI bh) corrirnunal loüns ...... DM 629.598.622.87 due in less than four years ...... DM 5.076.562.000.-

Mortgage bank leiidirigs with agreed life of four years or longer a) mortgages ...... 8.987.856.034.77 8.135. 456 used as cover ...... DM 8.420.298.713.62 h) comrnunal loans ...... 7.276.993.045.53 5.930. 822 used as cover ...... DM 6.774.692.532.63 C) others ...... 135.480.884.62 125.566 including: to crcdit institiitions ...... DM 741.699.945.86 16.400.329.964.92 [714.191. 844 Ititerest on long-term rnortyage bank lendings a) pro rata interest ...... 123.938.023.48 98. 196 ti) interest due after Octoher 31. 1974 and ori January 2. 1975 ...... 45.31 8.787.33 33. 340 C) interest arrears ...... - -- 169.256.81 0.81 U131. 536 Equalisation aiid coverinc~clüirris nn Fcderal and Larider authurities under ihe Ciirrericy Reforrn Laws ...... 540.561.073.67 571. 153 including: used as cover in mortgage bank business .....DM 94.298.392.68

Loaris nn a trust basis at third party risk ...... 583.405.583.32 449. 786

Investrnentsinsubsidiariesand associüted companies ...... 357.975.738.74 313. 861 including: in credit institutions ...... DM 197.714.353.52

Land and hiiildirigs ...... 775.649.356.39 608. 478 including: takeri over in mortgage business .....DM .. -

Office furniture and equipment ...... 357.397.554.62 281. 763

Own shares ...... 8.984.360.97 8. 972 notninal aniount ...... DM 1.629.550-

Debt instruments issiied by a metnbbr of the Group ...... 552.782.581.84 250. 970 nominal amount: ...... DM 591.554.940. -

Sundry assets ...... 805.695.953.82 712. 294

Transitory iterns ...... 22.210.104.97 4. 231

Total Assets 78.698.426.390.78 66.373. 906

The assets and the rights of recourse in respect of the liabilities shown below the liabilities sidc include ai clairns on associated coinpanies ...... 107.005.929.32 326. 388 b) claims which arise from credits falling under Ariiclc 15. paragraph 1. items 1 to 6. and paragraph 2. of the Banking Law. so far as they are not shown in a) ...... 397.191.029.52 343. 560

Expenses Consolidated Profit and Loss Account

lriterest and sirnilarexpenscs ...... 1 1 3,368,243,423.25 Interest expenditure in mortgage bank business an a) mortgage borids ...... 571,291,438.44 h) conirnunal bonds ...... 419,189.789.21 C) Iiunds in accordance with Article 5. para. 1, iteni 4 C uf the Mortgage Bank Law ...... 4.1 15,000.01 d) loaris taken up ...... 58,935,283.81 1,053,591.51 1.47 Commissions and sirnilarexpenses in respectof service transactions .... Nori-recurrent expenses in respcct of the mortgage banks' issue and loan business ...... Depreciation and adjustrnents an claims and securities, and allocations to provisions for possible loan lasses Salaries arid wages ...... Compulsory social security contributions ...... Expenditure on retirement pensiotis and other benefirs ...... Material experiditureforthe banking husiness ...... Depreciation and adjustrnents an land and buildings and on office furniture and equipment ...... Depreciation and adjustrnents ori investmerits in sut-isidiaries and associated companies ...... Taxes a) an income, earnings and property ...... b) othars ......

Allocations to special iteiiis including reserves ...... I I 54,835,358.02 21,350 Other expenses ...... I I 96,007,545.08 36,890 Year's net earnings ...... I 1 320,390,52575 191,536 Total Expenses 1 7,380,503,316.75 5,681,978

Year's riet earnings ...... Profit brought forward from the previous year ......

Allocations to published reserves ......

Profit sttributable to outsideshareholders ...... Profit of the tiroup ......

Frankfurt (Main), March 1975

Deutsche Bank Aktiengesellschaft

The Board of Managing Directors

Burgard Chrlstians Ehret

Feith Guth Herrhausen Kleffel

Leibkutsch Mertin Thierbach

Ulrich Vallenthin van Hooven for the period from January 1 to December 31,1974 Receipts 1973 D M in 1.000 DM

Interest and sirnilar receipts frorn lending and money rnarket iraiisactions Current receipts froni a) fixed-interest securities and debt register clairns ...... b) other securities ...... C) invcstments in subsidiaries and associated companies ...... lntercst earned in inortgage hank businessfrom a) mortgages ...... h) communal loans ......

Cornmissioris and other receiptsfrornservicetransactions ...... Non-recurrent receipts from the rnortgage bariks' issue and loan hiisiness Other receipts, including those frorn the writirig back of provisions for possi- ble loan losses ...... Receipts from the writing back of provisioris for special purposes, so far as they have not to be shown under "Other receipts" ...... Receiptsfrom the writing back of special itenis including reserves .....

Total Receipts

According to our audit, carried out in accordance with our professional duties, the Consolidated Statement of Accounts and the Report of the Group comply with the statutory provisions.

Frankfurt (Main), March 25, 1975

Treuverkehr AG Wirtschaftsprüfungsgesellschaft Steuerberatungsgesellschaft

Dr. Nebendorf Fandrt5 Wirtschaftsprüfer Wirtschaftsprüfer (Chartered Accountant) (Chartered Accountant) List of the Deutsche Bank's Investments in Subsidiaries and Associated Companies

German credit institutions capital our holding

AKA Ausfuhrkredit-Gesellschaft mbH, Frankfurt (Main) 40.0 rn. 27.0% Badische Bank, Karlsruhe 22.0 m. 25.1 % Berliner Disconto Bank Aktiengesellschaft, Berlin 53.0 m. 100 % Deutsche Centralbodenkredit-Aktiengesellschaft, Berlin - Köln 48.0 m. 70.8% Deutsche Gesellschaft für Fondsverwaltung mbH, Frankfurt (Main) 1.4 m. 100 % Deutsche Gesellschaft für Wertpapiersparen mbH, Frankfurt (Main) 10.0 rn. 34.0% Deutsche Grundbesitz-Investmentgesellschaft mbH, Köln 3.0 m. 37.5% Deutsche Kreditbank für Baufinanzierung Aktiengesellschaft, Köln 42.0 m. 75.0% Deutsche Schiffahrtsbank Aktiengesellschaft, Bremen 33.0 m. 25.2% Deutsche Schiffspfandbriefbank Aktiengesellschaft, Berlin - Bremen 1.0 m. 25.3% Deutsche Ueberseeische Bank, Berlin - Harnburg 40.0 m. 97.3% Deutsche Verrnögensbildungsgesellschaft mbH, Bad Homburg V d H 1.0 m. 60.0% Europäisch Asiatische Bank Aktiengesellschaft, Hamburg 28.0 m. 14.3% Frankfurter Bodenkreditbank Aktiengesellschaft, Frankfurt (Main) 3.0 m. 25.0% Frankfurter Hypothekenbank, Frankfurt (Main) 63.4 rn. 86.9% Gefa Gesellschaft für Absatzfinanzierung mbH, Wuppertal 30.0 rn. 100 % Gesellschaft zur Finanzierung von Industrieanlagen mbH, Frankfurt (Main) 1.0 m. 27.0% lndustriebank von Japan (Deutschland) Aktiengesellschaft -The lndustrial Bank of Japan (Germany) -, Frankfurt (Main) 40.0 rn. 25.0% Liquiditäts-Konsortialbank GmbH, Frankfurt (Main) 250.0 m. 8.1 % Lombardkasse Aktiengesellschaft, Berlin - Frankfurt (Main) 1.0 m. 14.2% Privatdiskont-Aktiengesellschaft, Frankfurt (Main) 5.0 rn. 13.2% Rheinische Kapitalanlagegesellschaft mbH, Köln 1.0 m. 37.5% Saarländische Kreditbank Aktiengesellschaft, Saarbrücken 20.0 rn. 68.9% Schiffshypothekenbank zu Lübeck Aktiengesellschaft, Lübeck 26.0 m. 28.9%

Foreign credit institutions

AEA Development Corporation, Manila/Philippines Phil. Pes. 30.0 m. Branco Bradesco de Investimento, S.A., Säo Paulo Cr$ 341.9 m. Banco Cornercial Transatlantico, Barcelona Ptas 801.0 m. Banco del Desarrollo Economico Espanol S.A., Madrid Ptas 899.8 rn. Banco fspanol en Alemania S.A., Madrid Ptas 165.0 m. Banque Commerciale Congolaise, Brazzaville/Congo CFA-Francs 700.0 m. Banque Commerciale du Maroc, Casablanca/Morocco Dirharn 19.5 m. Banque Europbenne de Crbdit, Brussels B. Francs 1,425.3 m. Banque Nationale pour le Developpement Economique, Rabat/Morocco Dirham 32.4 m. Banque Tchadienne de Credit et de Depots, NIDjamena/Chad CFA-Francs 330.0 m. H. Albert de Bary & Co. N.V., Amsterdam D. FIS 15.0 m. Compagnie Financibre de la Deutsche Bank AG, Luxembourg L. Francs 900.0 m. capital our holding

Corporacion Financiera Colombiana, BogotaIColombia Col. Pesos 156.9 m. Euro-Pacific Finance Corporation Ltd., MelbourneIAustralia A$ 5.0 m. European Banking Company Ltd., London £ 10.0m. European Brazilian Bank Ltd., London E 4.2 m. Foreign Trade Bank of Iran, Tehran/lran Rials 700.0 m. Industrial and Mining Development Bank of Iran, Tehranllran Rials 3,150.0 m. The Industrial Credit and Investment Corporation of lndia Ltd., Bombay/lndia Ind. Rupees 150.0 m. The lndustrial Finance Corporation of Thailand, Bangkok/Thailand Baht 150.0 m. International Mexican Bank Ltd., London E 5.0 m. Iran Overseas lnvestment Bank Ltd., London E 5.0m. Korea Development Finance Corpora.tion, Seoul/South Korea Won 3,000.0 m. Malaysian Industrial Development Finance Berhad, Kuala LumpurIMalaysia M$ 74.1 m. Nationale lnvestitionsbank für lndustrieentwicklung AG, Athens Drachmae 450.0 m. The Pakistan Industrial Credit and lnvestment Corporation Ltd., Karachi/Pa kistan Pak. Rupees 66.4 m. Private Development Corporation of the Philippines, Makati, RizallPhilippines Phil. Pesos 40.2 m. Societe Camerounaise de Banque, Yaounde/Cameroons CFA-Francs 1,500.0 m. Cociete lvoirienne de Banque, Abidjan/lvory Coast CFA-Fkancs 1,000.0 m. Teollistamisrahasto Oy-lndustrialization Fund of Finland Ltd., Helsinki Fmk 48.0 m. Union Eabonaise de Banque, LibrevilleIGabon CFA-Francs 750.0 m. Union Senbgalaise de Banque pour le Commerce et I'lndustrie, Dakar/Senegal Union Togolaise de Banque, Lom~ITogo

Other Gerrnan enterprises

"Alwa" Gesellschaft für Vermögensverwaltung mbH, Hamburg CGT Canada Grundbesitz Treuhand GmbH, Frankfurt (Main) Deutsche Beteiligungsgesellschaft mbH, Frankfurt (Main) Deutsche Canada-Grundbesitzverwaltungsgecellschaft mbH, Frankfurt (Main) Deutsche Gesellschaft für Anlageberatung mbH, Frankfurt (Main) Deutsche Grundbesitz-Anlagegesellschaft mbH, Köln Hessische Immobilien-Verwaltungs-Gesellschaft mbH, Frankfurt (Main) HOSTRA Beteiligungsgesellschaft mbH, Düsseldorf Matura Vermögensverwaltung mbH, Düsseldorf Nordwestdeutscher Wohnungsbauträger GmbH, Braunschweig Süddeutsche Vermögensverwaltung GmbH, Frankfurt (Main) Trinitas Vermögensverwaltung GmbH, Frankfurt (Main) Other foreign enterprises capital our holding

Adela Investment Company S.A., Luxembourg/Lima (Peru) US$ 61.3 m. EDESA Cocibtb Anonyme Holding, Luxembourg US$ 11.0 m. European-Arab Holding S.A., Luxembourg L. Francs 1,000.0 m. European Banks' International Company S.A., Brussels B. Francs 175.0 m. European Financial Associates N.V., The Hague D. Fls 0.4 m. European Hotel Corp. (EHC) N.V., Amsterdam D. FIS 41.2 m.

German American Capital Corporation, BaltimoreIUSA US$ , 0.01 m. International Investment Corporation for Yugoslavia, Luxembourg US$ 13.5 rn. Private Investment Company for Asia S.A., Panama-City/Panama US$ 28.2 m. Prornotora de Edificios para Oficinas S.A., Barcelona Ptas 180.0 Sociktk Internationale Financikre pour les lnvestissements et le Developpement en Afrique S.A. (SIFIDA), Luxembourg UBS - D8 Corporarion, New York Security lssuing and other Syndicate Transactions as well as lntroductions on the Stock Exchange

Domestic Loans of Public Authorities

91/2%,10% and g1I2% Loans of the 10% Loan of the Land Schleswig-Holstein Bundesrepublik Deutschland of 1974 of 1974 g1I2% and 10% Loans of the 9% and 10% Annuity and Communal Bonds Deutsche Bundesbahn of 1974 as well as Mortgage Bonds of the 10% and 9112% Loans of the Deutsche Siedlungs- und Landesrentenbank Deutsche Bundespost of 1974 - Series 12&131,133-140 and 143, 10% Loan of the Land Berlin of 1974 Series 17-22 - 10% and 9112% Loans of the Land Nordrhein-Westfalen of 1974

Other Domestic Loans, Mortgage and Communal Bonds

Braunschweig-Hannoversche Hypothekenbank Deutsche Hypothekenbank (Actien-Gesellschaft) Deutsche Centralbodenkredit-Aktiengesellschaft Deutsche Schiffahrtsbank Aktiengesellschaft Deutsche Hypothekenbank Schiffshypothekenbank zu Lübeck Aktiengesellschaft

Convertible and Optional Loans of Domestic and Foreign Issuers expressed in Deutsche Mark: BASF Aktiengesellschaft Wells Fargo International Investment Corporation Girrnes-Werke Aktiengesellschaft expressed in foreign currencies: Asia Navigation lnternational Ltd. Juvena Holding AG Canon Inc. Mitsui & CO., Ltd. Pioneer Electronic Corporation

Loans of Foreign Issuers expressed in Deutsche Mark: Australien Jydsk Telefon - Aktieselskab Stadt Bergen Mitsubishi Heavy Industries, Ltd. Brascan lnternational B. V. Republik Österreich Königreich Dänemark Osterreichische Kontrollbank Europäische Gemeinschaft für Kohle und Stahl Societe Concessionnaire des Autoroutes Fischer N. V. Paris-Est-Lorraine A.P.E.L. Foreningen Danske Olieberedskabslagre Tauernautobahn Aktiengesellschaft lndustrial and Mining Development Bank of Iran Unilever N.V. expressed in foreign currencies: The Agricultural Mortgage Corporation Limited British Steel Corporation Arnerican Motors Corporation City of Copenhagen The Australian lndustry Development Corporation Curacao Tokyo Holding N.V. Brisa - Auto-Estradas de Portugal, S.A.R.L. Electricity Supply Commission (Escom) EUROFIMA John Deere Credit Company European Coal and Steel Community Mitsubishi Heavy Industries, Ltd. European Investment Bank The Nippon Fudosan Bank, Limited Finnish Municipalities City of Oslo Ford Motor Company Pacific Lighting Overseas Finance, N.V. Ford Motor Credit Company Pechiney Ugine Kuhlmann International N.V. Groupement de I'lndustrie Siderurgique City of Quebec G.U.S. International N.V. Quebec Hydro-Electric Commission International Securities Company Skandinaviska Enskilda Banken

Domestic Shares

Aachener und Münchener Versicherung Deutsche Continental-Gas-Gesellschaft Aktiengesellschaft Deutsche Dampfschifffahrts-Gesellschaft "Hansa" AEG-TELEFUNKEN Kabelwerke Aktiengesellschaft Deutsche Spiegelglas Aktiengesellschaft Aktien-Brauerei Beckmann Aktiengesellschaft Deutsche Steinzeug- und Kunststoffwarenfabrik Aktiengesellschaft für Industrie und Verkehrswesen Verwaltungs-Aktiengesellschaft Aktiengesellschaft für Licht- und Kraftversorgung Deutscher Eisenhandel Aktiengesellschaft Aktien-Gesellschaft für Steinindustrie Didier-Werke AG Aktien-Gesellschaft "Weser" Die blauen Quellen Frjtz Meyer & Co. Aktiengesellschaft Allgäuer Alpenmilch Aktiengesellschaft Dierig Holding Aktiengesellschaft Allgauer Brauhaus Aktiengesellschaft Dortmunder Stifts-Brauerei Carl Funke Aktiengesellschaft Allgemeine Deutsche Credit-Anstalt Eichbaum-Brauereien Aktiengesellschaft Allianz Lebensversicherungs-AG. Einkaufskontor Stuttgart des südwestdeutschen Allianz Versicherungs-Aktiengesellschaft Nahrungsmittelgroßhandels - Aktiengesellschaft Badische Bank Eisen- und Drahtwerk Erlau AG BASF Aktiengesellschaft Eisenwerk Weserhütte Aktiengesellschaft Bayerische Brauerei-Schuck-Jaenisch Aktiengesellschaft Elektricitäts-Lieferungs-Gesellschaft Bayerische Elektricitäts-Lieferungs-Gesellschaft Enka Glanzstoff AG Aktiengesellschaft ERBA Aktiengesellschaft für Textilindustrie Bayerische Motoren Werke Aktiengesellschaft Erdölwerke Frisia Aktiengesellschaft Bayerische Vereinsbank Flensburger Schiffsbau-Gesellschaft Berliner Kraft- und Licht (6ewag)-Aktiengesellschaft Frankona Rück- und Mitversicherungs- Berlinische Feuer-Versicherungs-Anstalt Aktien-Gesellschaft H. Berthold Aktiengesellschaft Geestemünder Bank Bill-Brauerei A.G. Gelsenberg Aktiengesellschaft Braunschweig-Hannoversche Hypothekenbank Arn. Georg Aktiengesellschaft Bremer Vulkan Schiffbau und Maschinenfabrik Gerresheimer Glas Aktiengesellschaft Büttner-Schilde-Haas Aktiengesellschaft Gerling-Konzern Allgemeine Versicherungs- Burbach-Kaliwerke Aktiengesellschaft Aktiengesellschaft Butzke-Werke Aktiengesellschaft Gildemeister Aktiengesellschaft Chemische Fabrik Helfenberg Aktiengesellschaft Girmes-Werke Aktiengesellschaft vorm. Eugen Dietrich Th. Goldschmidt Aktiengesellschaft Dahlbusch Verwaltungs-Aktiengesellschaft Hamburger Getreide-Lagerhaus-Aktiengesellschaft Daimler-Benz Aktiengesellschaft Hanfwerke Oberachern Aktiengesellschaft DEMAG Aktiengesellschaft Hannoversche Papierfabriken Alfeld-Gronau Deutsche Babcock & Wilcox Aktiengesellschaft vorm. Gebr. Woge Hessen-Nassauischc Gas-Aktiengesellschaft G. M. Pfaff AG Holsten-Brauerei Rheinisch-Westfälische Boden-Credit-Bank lndustriekreditbank Aktiengesellschaft - Deutsche Rheinische Hypothekenbank lndustriebank Rheiristahl Aktiengesellschaft "KERAMAG" Keramische Werke Aktiengesellschaft Ruberoidwerke Aktiengesellschaft Klein, Schanzlin & Becker Aktiengesellschaft Rutgerswerke Aktiengesellschaft Kleinbahn Kassel-Naumburg Aktiengesellschaft Schcidemandel Aktiengesellschaft Kochs Adler Aktierigesellschaft Siemens Aktiengesellschaft Konkordia Aktiengesellschaft für Druck und Verlag Stern-Brauerei Carl Funke Aktiengesellschaft Kölner Bürgergesellschaft Aktiengesellschaft Stöhr & Co. Aktiengesellschaft Kölnische Rückversicherungs-Gesellschaft Strabag Bau-Aktiengesellschaft Kölsch-Fölzer-Werke Aktiengesellschaft Stuttgarter Hofbräu Aktiengesellschaft Leonische Drahtwerke Aktiengesellschaft Thuringer Gasgesellschaft Linde Aktiengesellschaft August Thyssen-Hütte Aktiengesellschaft Lüneburger Kronen-Brauerei Aktiengesellschaft Triton-Belco Aktiengesellschaft zu Lüneburg Überlandwerk Oberfranken Aktiengesellschaft Maehler & Kaege Aktiengesellschaft Uberlandwerk Unterfranken Aktiengesellschaft Magdeburger Feuerversicherungs-Gesellschaft VARTA Aktiengesellschaft Magdeburger Rückversicherungs-Actien- VEBA Aktiengesellschaft Gesellschaft Vereinigte Altenburger und Stralsunder Mannesmann Aktiengesellschaft Spielkarten-Fabriken Aktiengesellschaft MEZ Aktiengesellschaft Vereinigte Werkstätten für Kunst im Handwerk Mineralbrunnen Uberkingen-Tcinach-Ditzenbach AG Aktiengesellschaft Münchener Rückversicherungs-Gesellschaft Vereins- und Westbarik Aktiengesellschaft Nordstern Allgemeine Versicherungs-Aktiengesellschaft Wintershall Aktiengesellschaft Nordwestdeutsche Kraftwerke Aktiengesellschaft Otto Wolff Aktiengesellschaft Oelmühle Hamburg Aktiengesellschaft Württembergische Feuerversicherung PWA Papierwerke Waldhof-Aschaffenburg Aktiengesellschaft in Stuttgart Aktiengesellschaft

Foreign Shares

AKZO N. V. The Mitsui Bank, Limited Atlas Copco AB Mitsui 0. C. K. Lines, Ltd. Gio. Buton & C. S. p. A. Mitsui Shipbuilding & Engineering Co., Ltd. Colgate-Palmolive Company Nestle Alimentana A. G. Columbia Broadcasting System, Inc. Nippon Electric Company, Limited Compagnie Bruxelles Lambert pour la Finance Nissho-lwai Co., Ltd. et I'lndustrie Otis Elevator Company Consolidated Gold Ficlds Limited The Rio Tinto-Zinc Corporation Limited Continental Can Company, Inc. Rotterdamsch Beleggingsconsortium N. V. Control Data Corporation The Sanko Steamship Company Limited Japan Line, Ltd. Thomson - CSF Juventa Holding AG Tokyo Shibaura Electric Co., Ltd. Komatsu, Ltd. TRW Inc. Marubeni Corporation Aktiebolaget Volvo Mitsubishi Electric Corporation Regional Advisory Councils

Advisory Council of Bielefeld Karl Bernhard Grautoff, Chairman of the Board of Managing Directors, Dip1.-Kfm. Hans A. Barthelmeh, Gildemeister AG, Bielefeld Deputy Chairman of the Board of Managing Directors, Gildemeister AG, Bielefeld Helmut W. Günther, Managing Director, Manfred Bohnen, Messrs. Bischof & Klein, Lengerich (Westf.) Member of the Board of Managing Directors, NlNO AG, Nordhorn Wilhelm Karmann, Partner and Managing Director. Dip1.-Kfm. Ehrenfried Brandts, Wilhelm Karmann GmbH, Osnabrück Partner and Managing Director, Messrs. Hermann Windel, Windelbleiche Rechtsanwalt Horst Klein, Chairman of the Board of Managing Directors, Erich Coenen, Hoffmann's Stärkefabriken AG, Bad Salzuflen Member of the Board of Managing Directors, Germania-Epe Spinnerei AG, Epe (Westf.) Claus Kümpers, Dr. Jürgen Deilmann; Personally-liable Partner of Member of the Board of Managing Directors, F. A. Kümpers KG, Rheine (Westf.) C. Deilmann AG, Bentheim Dipl.-Holzwirt Otto Künnemeyer, Hendrik E. van Delden, Partner and Managing Director, Partner in Gerrit van Delden & Co., Gronau (Westf.) HORNITEX WERKE Gebr. Künnemeyer, Horn-Bad Meinberg

Rernbert van Delden, Carl Miele, Member of the Board of Managing Directors, Partner in Miele & Cie., Gütersloh Textilwerke Ahaus AG, Ahaus (Westf.) Otto Müller-Habig, Victor Dierig, Member of the Board of Managing Directors, Managing Director, Westfalia Separator AG, Oelde (Westf.) F. H. Hammersen GmbH, Osnabrück Dr. Wilhelm Röpke, Heinz Dyckhoff, Partner in Westfälische Metall Partner and Managing Director, Industrie KG Hueck & Co., Lippstadt Messrs. Dyckhoff & Stoeveken, Baumwoll-Spinnerei, Rheine (Westf.) Dr. Heinz Rössler, General Manager of Erica Rössler/ Horst Franzel, Modische Strickerei GmbHJHeinz Rössler & Söhne KG, Managing Director, Osnabrück Erdgas-Verkaufs-Gesellschaft mbH. Münster (Westf.) Theodor Scheiwe, Hans Georg Gallenkamp, Businessman, Münster (Westf.) Managing Director, Dip1.-Volkswirt Friedrich Schütte, Felix Schoeller jr. Feinpapierfabrik, Osnabrück General Manager, Bekleidungswerke Erwin Hucke oHG, Nettelstedt (Westf.) Dr.-lng. Max Gennerich, Partner and Managing Director, Dr. Werner Schulten, Messrs. Windmöller & Hölscher, Lengerich (Westf.) Partner in Gebr. Schulten, Südlohn (Westf.)

0ipl.-lng. Edgar Georg, Dipl.-Kfm. Carl Erdwin Starcke, Chairman of the Partners Committee, Partner and Managing Director of the Messrs. A. Friedr. Flender & Co., Bocholt, Neitersen Starcke Group, Melle, Hannover Rudolf Stelbrink, Dr. Juergen Krackow, General Manager, Chairman of the Board, Rudolf A. Oetker Zentralverwaltung, Bielefeld Stahlwerke Röchling-Burbach GmbH, Völklingen

Max Wilbrand, Konsul Dr. Friedrich Kristinus, Partner in Gebr. Rath, Kammgarn-Spinnerei Chairman of the Board of Managing Directors, und Färberei, Sassenberg (Westf.) Martin Brinkmann AG, BremenIHamburg

Dr. rer. pol. Gerhard Lofink, Member of the Board of Managing Directors, Olympia Werke AG, Wilhelmshaven Advisory Council of Bremen Dr. Karl Mahlert, Karl-Heinr Lange, Chairman, Managing Director of Exportbrauerei Beck & Co., Bremen of Messrs. Albrecht, Müller-Pearse & Co., Bremen Dipl.-lng. Hermann L. Mende, Johann Gottfried Schütte, Deputy Chairman, Partner and Managing Director of Norddeutsche Mende of Messrs. Joh. Gottfr. Schütte & Co., Bremen Rundfunk KG, Bremen

Dipl.-Volkswirt Dr. rer. pol. Heinz Ache, Hermann Noe, Spokesman of the Board of Managing Directors of Dock- und Schiffahrtsgesellschaft Kaiserhafen of Aktien-Gesellschaft "Weser", Bremen Noe & Co., ~remerhaven

Carl-Diedrich Baumeister, Dipl.-Kfm. Heinz Rust, Chairman of the Advisory Council, Chairman of the Board of Managing Directors, August Brotje Werke für Heirungstechnik, Rastede i. 0. Bremer Woll-Kämmerei, Bremen-Blumenthal

Kurt A. Becher, Franz Tecklenborg, of Kurt A. Becher, Bremen Chairman of the Board of Management, BTF-TEXTILWERKE Tecklenborg & Co., Bremen Dipl.-Kfm. Walter Behrmann, Member of the Board of Managing Directors, Henry C. Thomas, Deutsche Schiffahrtsbank AG, Bremen of Fuhrmann & Co. KG, Bremen

Friedo Berninghausen, Carl Max Vater, of Messrs. Steinbrügge & Berninghausen, Bremen-Holzhafen of C. Wuppesahl, Bremen

Karl-Hillard Geuther, Herbert Waldthausen, of Karl Geuther & Co., Bremen of Lohmann & Co., Bremen

Hermann C. Helms, Helmut Wilkens, Chairman of the Board of Managing Directors, Deutsche Chairman of the Board of Managing Directors, Dampfschiffahrts-Gesellschaft "Hansa", Bremen Wilkens Bremer Silberwaren AG, Bremen

Heinz-Werner Hempel, of F. W. Hempel & Co. - Erze und Metalle - (GmbH & Co.), Bremen Advisory Councll of Cologne

Werner Klemeyer, Professor Dr. Peter Ludwig, Chairman of Scipio & Co., Bremen Partner and Chairman of the Management Board, Leonard Monheim. Aachen Dipl.-lng. Friedrich Koch, Managing Director of DESMA-Werke GmbH, Achim Bez. Konsul Dr. Jean Louis Schrader, Deputy Chairman Bremen Aachen. Brussels Hans Heinrich Auer, Eugen Gottlieb V. Langen, Partner in Heinr. Auer Mühlenwerke KGaA, Cologne Honorary Chairman of the Partners' Committee, Pfeifer & Langen, Cologne Oberforstmeister Herrnann Behncke, General Manager of the Fürstlich Sayn-Wittgenstein- Dr. Rolf Lappe, Berleburg'sche Verwaltung, Bad Berleburg Chairman of the Management Board, A. Nattermann & Cie. GmbH, Cologne Dr. Knut Bellinger, Partner and Chairman of the Management Board, H. Dip1.-Berging. Hans Lindernann-Berk, Dyckhoff, Cologne Partner and Managing Director of Quarzwerke GmbH, Frechen Heinrich Bröll, Member of the Board of Managing Directors, Dipl.-lng. Dr.-lng. E. h. Albert Löhr, Strabag Bau-AG, Cologne Cologne

Jan Brügelmann, Robert A. Lutz, Partner and Managing Director of Chairman of the Board of Managing Directors, Messrs. F. W. Brügelmann Söhne, Cologne Ford-Werke AG, Professor Dr. Fritz Burgbacher, Cologne Cologne Dr. John-Werner Madaus, Paul Falke, Partner and Managing Director of Dr. Madaus & Co., Partner and Managing Director of the Cologne Franz Falke-Rohen Strumpf- und Strickwarenfabriken Rolf Mauser, GmbH, Schmallenberg Managing Director of Mauser-Werke GmbH, Cologne Dr. Nikolaus Fasolt, Partner and Managing Director, Wessel-Werk GmbH, Bonn Ferdinand Mülhens, of Eau de Cologne & Parfümerie-Fabrik Dr.-lng. E. h. Erwin Gärtner, Glockengasse Nr. 471 1 gegenüber der Pferdepost Member of the Board of Managing Directors, von Ferd. Mülhens, Cologne Rheinische Braunkohlenwerke AG, Cologne Dr. Petrus A. Neeteson, Dr. Fritz Gläser, General Manager of Compagnie de Saint-Gobain- Member of the Board of Managing Directors. Pont-a-Mousson in Deutschland, Aachen RHENAG Rheinische Energie AG, Cologne Alfred Neven DuMont, Dr. Siegfried Hartmann, Partner and General Manager of M. DuMont Schauberg, Managing Director, Cologne Kronos Titan-GmbH, Leverkusen Werner Niederstein, Dipl.-lng. Joachim Henschke, Chairman of the Board of Managing Directors, Managing Director of Ideal-Standard GmbH, Bonn SAG Siegener AG, Hüttental-Geisweid Heinz Heudorf, Josef Pracht, Member of the Board of Managing Directors, Schloemann-Siemag AG, Hilchenbach-Dahlbruch Krs. Siegen Partner in Spedition Pracht KG, Haiger (Dillkreis)

Hans E. Holzer, Gerd Prawitz, Member of the Board of Managing Directors, Partner and Managing Director. Messrs. W. Ernst Haas & Dynamit Nobel AG, Troisdorf Sohn, Sinn (Dillkreis)

Helmut Kranefuss, Gerd Proenen, Wassenberg Partner in Messrs. Bierbaum-Proenen, Cologne Dieter Prym, Hans Joachirn Wuppermann, Partner and Managing Director of the Partner and Managing Director, William Prym-Werke KG, Stolberg (Rhld.) Theodor Wuppermann GmbH, Leverkusen

Johannes Puhl, Dr. Johann Wilhelm Zanders, Member of the Board of Managing Directors. Partner and Managing Director, ZANDERS Otto Wolff AG, Cologne Feinpapiere GmbH, Bergisch Gladbach und Düren, Bergisch Gladbach Dr. Eberhard Reichstein, Member of the Board of Managing Directors, Deutsche Centralbodenkredit-AG, Cologne Advisory Councll of Düsseldorf Friedrich Roesch, Member of the Board of Managing Directors, Kaufhof AG, Dr. h. C. Ernst Wolf Mommsen, Chairman, Cologne Chairman of the Board of Managing Directors, Fried. Krupp GmbH, Essen Friedrich Schadeberg, Partner and General Manager of the Krombacher Brauerei Erich Selbach, Deputy Chairman, Bernhard Schadeberg, Kreuztal-Krombach Krs. Siegen Chairman of the Supervisory Board, Girmes-Werke AG, Grefrath-Oedt (Rhld.) Werner Schoeller, Partner in ANKER Teppichfabrik Gebrüder Schoeller, Düren Professor Dr. Viktor Achter, Partner and Managing Director of Dr. Rolf Selowsky, Viktor Achter GmbH & Co., Viersen Member of the Board of Managing Directors, Klöckner-Humboldt-Deutz AG, Cologne Gustav Band, Member of the Board of Managing Directors, Walter Sinn, Gerresheimer Glas AG, Düsseldorf Member of the Board of Managing pirectors, Dr. Dr. Jörg Bankmann, Westdeutsche Handelsgesellschaft Gebt. Sinn AG, Member of the Board of Managing Directors, Cologne Thyssen Vermögensverwaltung GmbH, Düsseldorf Herbert Wahlen, Rudolf V. Bennigsen-Foerder, Partner in Lindgens & Söhne, Cologne Chairman of the Board of Managing Directors, Anton Weiler, VEBA AG, Düsseldorf Mernber of the Board of Managing Directors, H. J. E. van Beuningen, Gerling Group, Cologne Member of the Supervisory Board, Pakhoed N. V., Rotterdam (Netherlands) Dr. Franz-Josef Weitkemper, Mernber of the Board of Managing Directors, Dr. Marcus Bierich, Bayer AG, Leverkusen Mernber of the Board of Managing Directors, Mannesrnann AG, Düsseldorf Dipl.-Kfm. Dieter Wendelstadt, Chairman of the Board of Managing Directors, Hermann Boehm, COLONIA VERSICHERUNG AG, Cologne Senator E. h., Düsseldorf

Dr. Andreas Wirtz, Leo Brand, Partner and Managing Director. Owner of Heinrich Brand, Neuss Dalli-Werke Mäurer & Wirtz, Stolberg (Rhld.) Fritz Brandi, Dieter Wolf, Chairman of the Management, ELF MINERALOEL GmbH. Managing Director of Wolf Geräte GmbH, Bettdorf (Sieg) Düsseldorf Kurt Bresges, Dipl.-lng. Laurenz Müller, Partner and Managing Director of A. Bresges, Partner and Managing Director of Messrs. Hille & Müllar. Mönchengladbach Düsseldorf

Niets V. Bülow, Edgar Pfersdorf, Honorary Chairman of the Cupervisory Board, Chairman of the Board of Managing Directors, Gerresheimer Glas AG, Düsseldorf Langbein-Pfanhauser Werke AG, Neuss

Dr. Friedrich Wilhelrn Clauser, Dr. Lothar Pohl, Member of the Board of Managing Directors. Member of the Board,of Managing Directors, Vereinigte Rheinmetall Berlin AG, Düsseldorf Seidenwebereien AG, Krefeld

Dipl.-lng. Eduard H. Dörrenberg, Gerhard Potthoff, Partner in Messrs. Rohde & Dörrenberg, Düsseldorf Düsseldorf

Dip1.-Kfm. Wilhelm Fehler, Werner P. Roell, Member of the Board of Managing Directors, Chairman of the Supervisory Board, Hein, Lehmann AG, Düsseldorf Jagenberg-Werke AG, Düsseldorf

Ernst Fischer, Dipl.-lng. Ernst Theodor Sack, Partner and Managing Director Partner and Managing Director. of Messrs. G. Beckers & La Hanne, Kempen Maschinenfabrik Sack GmbH, Düsseldorf

Audun R. Fredriksen, Dr. Artur Schmidt, Group Vice President Medical Products Minnesota Mining Managing Director of Muskator-Werke Herrnann Schmidt and Manufacturing Co., St. Paul, Minnesota (USA) KG, Düsseldorf

Albert T. Greiner, Professor Dr.-lng. Günther Schwietzke, Chairman of the Management Board, Partner in J. G. Schwietzke Metallwerke, Düsseldorf Rank Xerox GmbH, Düsseldorf Dieter Siempelkamp, Dr. Wilfried Grewing, Partner and Managing Director of Managing Director of Hünnebeck GmbH, G. Siempelkamp & Co., Maschinenfabrik, Krefeld Ratingen Dr. Hans Spilker, Konsul Rudolf Grolman, Managing Director, Gesellschaft für Elektrometallurgie mbH, Düsseldorf Owner of Gustav Grolman, Düsseldorf Dr. Friedrich Stockhausen, Jan Kleinewefers, Partner and Managing Director, Partner and Managing Director of Kleinewefers GmbH, Chemische Fabrik Stockhausen & Cie., Krefeld Krefeld Dip1.-lng. Hermann Storm, Dip1.-Kfm. Otto Klötzer, Partner in Messrs. Schmolz i-Bickenbach, Düsseldorf Chairman of the Management, Gustav Hoffrnann GmbH, Kleve (Rhld.) Emil Underberg, Partner and Managing Director. Dr, Heinz Mittag, Underberg GmbH, Rheinberg (Rhld.) Partner and Managing Director of Dr. Carl Hahn GmbH, Düsseldorf Dipl.-lng. Albrecht Woeste, Partner in R. Woeste & Co., Düsseldorf Caspar Monforts von Hobe, Partner in A. Monforts Maschinenfabrik und Eisengiesserei, Dip1.-lng. Eduard Robert Zapp, Mdnchengladbach Partner in Robert Zapp, Düsseldorf Advisory Council of Essen Dipl.-Kfm. Klaus Hill, Member of the Board of Managing Directors, Josef Fischer, Chairman, Heinr. Hill AG, Hattingen (Ruhr) Chairman of the Board of Managing Directors, Hoesch Werke AG, and Chairman of the Board of Managing Walter Hövelmann, Directors, Hoesch AG, Dortmund Partner in Walter Hundhausen KG, Schwerte (Ruhr)

Dipl.-lng. Walter Alfen, Heinz-Dieter Hoffmann, Mernber of the Board of Managing Directors. Glückauf-Bau- Mernber of the Board of AG. Dortmund Franz Haniel & Cie. GmbH, Duisburg

Karl Bach, Konsul Karl Holstein, Member of the Board of Managing Directors, 0 & K Honorary Chairman of the Supervisory Board, Orenstein & Koppel AG, Dortmund Flachglas AG DELOG-DETAG, Gelsenkirchen

Harald von Bohlen und Halbach, Thbodore Kaas, Deputy Chairman of the Supervisory Board, President of SIDECHAR, Paris, and Member of the Board Bohlen Industrie AG, Essen of Managing Directors of Harpener AG, Dortmund

Hans-Heinz Boos, Dipl.-Kfm. Hans Eberhard Kloepfer, Spokesman of the Board of Managing Directors, Partner and Managing Director, W. Döllken & Co. GmbH, Edelstahlwerk Witten AG, Witten Essen

Rudolf Brickenstein, Dr. Leo König, Partner in König-Brauerei KG, Duisburg Managing Director, W. Brügmann & Sohn GmbH, Dortrnund Dr. Karl Kössel, Dr. Walter Deuss, Chairman of the Boards of Managing Directors, Mernber of the Board of Managing Directors, Volkswohl-Bund Lebensversicherung a. G. and Karstadt AG, Essen Volkswohl-Bund Sachversicherung AG, Dortmund

Dipl. sc. pol. Hans L. Ewaldsen, Dr. Klaus Kuhn, Chairman of rhe Board of Managing Directors, Member of the Board of Managing Directors, Deutsche Babcock & Wilcox AG, Oberhausen (Rhld.) August Thyssen-Hütte AG, Duisburg Dr. Herbert Gienow, Dr. Hans-Helmut Kuhnke, Chairman of the Board of Managing Directors, Hattingen (Ruhr) Klöckner-Werke AG, Duisburg Dr. Klaus Liesen, Dr. Walter Griese, Deputy Chairman of the Board of Managing Directors, Member of the Board of Managing Directors, Ruhrgas AG, Essen Flachglas AG DELOG-DETAG, Gelsenkirchen Dr. Hubertus Müller von Blumencron, Wilhelrn Haverkamp, Chairman of the Board of Managing Directors, Duisburger Kupferhütte, Duisburg Member of the Board of Managing Directors, Ferrostaal AG, Essen Dipl.-Kfm. Karlheinz Portugall, Member of the Board of Managing Directors, Robert Heitkamp, DEMAG AG, Duisburg Proprietor of Bauunternehmung E. Heitkamp GmbH Wanne-Eickel, Wanne-Eickel Dip1.-Kfrn. Günter Reiss, Essen Rolf R. Herklotz-Delaitte, Chairman of the Board of Friedrich Arnhard Scheidt, Leichtmetall-Gesellschaft mbH, Essen Kettwig Dr. Richard Schulte, Dr. Victor Baillou, Chairman of the Board of Managing Directors, Member of the Management Board of Vereinigte Elektrizitätswerke Westfalen AG, Dortmund E. Merck, Darmstadt

Dr.-lng. Albrecht Schumann, Dip1.-Kfm. Dr. jur. Martin Bieneck, Chairman of the Board of Managing Directors, Chairman of the Board of Managing Directors, Hochtief AG für Hoch- und Tiefbauten Didier-Werke AG, Wiesbaden vorm. Gebr. Helfmann, Essen Severino Chiesa, Dipl.-Kfm. Karl Stein, Managing Director of Ferrero, GmbH, Frankfurt (Main) Member of thß Board of Managing Directors, Stern-Brauerei Carl Funke AG, Essen Carl Ludwig Graf von Deyrn, Hans Walter Stürtzer, Chairman of the Board of Managing Directors, Papierfabrik Oberschmitten W. &J. Moufang AG, Member rif the Board of Managing Directors, Nidda-Oberschmitten (Oberhessen) Ruhrchernie AG, Oberhausen (Rhld.) Dr. jur. Alexander Freiherr von Dörnberg, Dipl.-Kfm. Wolfgang Tgahrt, Hausen-Oberaula Essen Dr. rer. nat. Heinz-Gerhard Franck, Dr.-lng. Ernst Joachim Trapp, Chairman of the Board of Managing Directors, Partner in F. C. Trapp Bauunternehmung, Wesel Rütgerswerke AG, Frankfurt (Main) Dipl.-lng. Hans Uhde, Hermann Gruner, Managing Director of Friedrich Uhde GmbH, Dortmund Member of the Board of Managing Directors, Dyckerhoff Zementwerke AG, Wiesbaden Dr. Benno Weimann, Chairman of the Board of Managing Directors, Dr.-lng. Hans Harms, Gelsenwasser AG, Gelsenkirchen Darmstadt

Dr. Hans Georg Willers, Otto Henkell, Member of the Board of Mana~ingDirectors, Partner and Managing Director of Henkell & Co., Hugo Stinnes AG, Mülheim (Ruhr) Sektkellereien, Wiesbaden-Biebrich

Dip1.-Kfm. Heinz Wolf, Dr. W. H. Heraeus, Member of the Management, Klöckner & Co., Duisburg Deputy Chairman of the Supervisory Board. W. C. Heraeus GmbH, Hanau Karl-Wilhelm Zenz, Managing Director of Carl Spaeter GmbH, Duisburg Eberhard von Heusinger, Member of the Board of Managing Directors. VARTA AG, Bad Homburg V. d. H. Advisory Council of Frankfurt Dietrich Karg, Konsul a. D. Fritz Dietz, Chairman, Managing Director of HERTIE Owner of Gebr. Dietz, Frankfurt (Main) Waren- und Kaufhaus GmbH, Frankfurt (Main)

Dr. jur. Horst Pavel, Deputy Chairman, Dr.-lng. Walter Kesselheim, Bad Homburg v.d.H. Senator E. h., Deputy Chairman of the Supervisory Board. Philipp Holzmann AG, Frankfurt (Main) Dr. Hans Albers, Member of the Board of Managing Directors, Walther Leisler Kiep, Carl Schenck AG, Darmstadt Partner in Messrs. Gradmann & Holler, Frankfurt (Main) Heribert Kohlhaas, Max Richter, Managing Director of Kraft GmbH, Eschborn Partner in Max Richter, Kammgarnspinnerei, Stadt Allendorf (Kreis Marburg) Hans Werner Kolb, Chairman of the Board of Managing Directors, Rechtsanwalt Christian Ruppert, Buderus'sche Eisenwerke Wetzlar, Wetzlar Member of the Board of Managing Directors, Cassella Farbwerke Mainkur AG, Frankfurt (Main) Hermann Kupczyk, Partner and Managing Director of Fredenhagen KG, Harry Sammel, Maschinenfabrik. Offenbach Chairman of the Management Board, Gebr. Happich GmbH. Wuppertal Staatssekretär a. D. Dr. Wolfram Langer, President of the Deutsche Pfandbriefanstalt, Wiesbaden Dipl.-Kfm. Dr. rer. pol. Helmut Schäfer, Managing Director of Filzfabrik Fulda GmbH, Robert Lavis, Fulda Partner and Managing Director, Dr. Hans Schleussner, Stahlbau Michael Lavis Söhne, Offenbach Partner end Managing Director of Dr. Günther Letschert, BIOTEST-SERUM-INSTITUT GmbH, Frankfurt (Main), President of the Administrative Board of CELFA AG, Member of the Board of Managing Directors, Schwyz, and FOLEX Dr. H. Schleussner AG, Zurich, Frankfurter Hypothekenbank, Frankfurt (Main) Frankfurt (Main)

Dr. Hans Meinhardt, Dr. Robert Schwab, Member of the Board of Managing Directors, Chairman of the Board of Managing Directors, Linde AG, Wiesbaden Dunlop AG, Managing Director of Dunlopillo GmbH, Managing Director of Dunloplan GmbH, Hanau Dr. Gustav von Metzler, Partner in Bankhaus B. Metzler seel. Sohn & Co., Gert Silber-Bonz, Frankfurt (Main) Chairman of the Board of Managing Directors, Veith-Pirelli AG, Höchst (Odenwald), Dr. rer. nat. Hans Moell, and Partner and Managing Director of Chairman of the Board of Managing Directors, Ph. Ludwig Arzt, Michelstadt (Odenwald) Wintershall AG. Kassel Helmut Spies, Harro Moller-Racke, Chairman of the Board of Managing Directors, Partner and Managing Director, Fichte1 & Sachs AG, Schweinfurt (Main) Firmengruppe Pott + Racke, Bingen (Rhein) Dr. rer. pol. Karl von Winckler, Dr. Dietrich Natus, Wetzlar Spokesman of the Management, Dr. phil. nat. Herbert Winter, Lurgi-Gesellschaften Kronberg (Taunus) and Member of the Board of Managing Directors of Dipl.-Kfm. Dr. oec. Gerhard Ziener, Metallgesellschaft AG, Frankfurt (Main) Chairman of the Management of Röhm GmbH, Darmstadt Gerhard Pohl, Chairman of the Supervisory Board, Wella AG, Darmstadt

Dr. Otto Ranft, Member of the Board of Managing Directors, Hoechst AG, Frankfurt (Main)-Höchst Advisory Council of Freiburg Dipl.-Kfrn. Manfred Hopf, Chairman of the Board of Managing Directors, Dr. Helmut Winkler, Chairman, Maschinenfabrik Fahr AG, Gottmadingen Partner and Managing Director in Lauffenmühle Gustav Winkler KG, Tiengen (Hochrhein) Dipl.-lng. Giuseppe Kaiser, Chairman of the Board of Managing Directors, Dr.-lng. Wilhelm Bauer, Schiesser AG, Radolfzell (Bodensee) Chairman of the Advisory Council, Otto Textilwerke, Werner Koehler, Wendlingen-Offenburg KG, KilchberglZürich Managing Director, Papierfabrik August Koehler AG, Friedel Berning, Oberkirch (Baden) Member of the Supervisory Board, Paul Meyer, Maggi GmbH, Singen (Hohentwiel) General Manager of ALUSUISSE Deutschland GmbH, Dipl.-lng. Dr. rer. pol. Wilhelm Binder, Konstanz (Bodensee) Managing Director of Prof. Dr. Erich Pfisterer, Binder-Magnete GmbH, Villingen (Schwarzwald) Member of the Boards of Managing Directors, Dipl.-Kfm. Herrnann Brunner-Schwer, Schluchseewerk AG end Rheinkrafiwerk Albbruck-Dogern Managing Partner and President of AG, Freiburg (Breisgau) SABA Schwarzwälder Apparate-Bau-Anstalt Gustav Rall, August Schwer Sohne GmbH, Villingen (Schwarzwald) Member of the Board of Managing Directors, Richard Dahlinger, Spinnerei und Webereien Zell-Schönau AG, Zell (Wiesental) Partner and Managing Director, Dipl.-lng. Fritr Reichle, Ch. Dahlinger, Verpackungswerke, Lahr (Baden) Member of the Board of Managing Directors, Dr. Rolf Draeger, Allweiler AG, Pumpenfabriken, Managing Director of Byk-Gulden Lomberg, Radolfzell (Bodensee) Chemische Fabrik GmbH, Konstanz (Bodensee) Achatius Graf Saurma, Konsul Dipl. rer. pol. H. W. Dyllick-Brenzinger, President of the Fürstlich Furstenbergische Partner and Managing Director of Gesamtverwaltung, Donaueschingen Brenzinger & Cie. GmbH, Freiburg (Breisgau) Dr. Hans-Peter Schär, Georg Herbert Endress, Member of the Executive Management, Managing Director, Ciba-Geigy AG. Basle Messrs. Endress Hauser GmbH 8 Co. KG, + Rudolf Schuler, Mess- und Regeltechnik, Maulburg (Baden) Member of the Board of Managing Directors, Dipl.-Kfrn. Dr. rer. pol. Martin Fahnauer, Gabriel Herose AG, Konstanz (Bodensee) Managing Director of KlENZLE Apparate GmbH, Villingen Dipl.-lng. Rolf Steinberg, Dr. jur. Bernhard K. Greuter, Member of the Board of Managing Directors, General Manager, Wehrle Werk AG, Emmendingen (Baden) Georg Fischer AG, Schaffhausen (Switzerland) Gerd L. Suter, Horst R. Güterrnann, Chairman of the Board of Managing Directors, Partner in Messrs. Gutermann & Co., Ciba-Geigy AG, Wehr (Baden) Nähseidenfabriken, Gutach (Breisgau) Heinrich Villiger, Dr. jur. Franzjosef Hackelsberger, Partner and Managing Director, Partner and Managing Oirector of Villiger Söhne GmbH, Cigarrenfabriken, Messrs. J. Weck & Co., uflingen (Baden) Tiengen (Hochrhein) Dr. Gerhard Wiebe, Willy Korfgen, Partner in August Faller KG, Graphische Kunstanstalt, Chairman of the Supervisory Board of Waldkirch (Breisgau) VTG Vereinigte Tanklager und Transportmittel GmbH, Dr. Hans Wirth, Hamburg Managing Director, Ph. Suchard GmbH, Konrad Freiherr V. Kottwitz, Schokoladenwerke, Lörrach of Messrs. Jauch 8 Hübener, Harnburg

Dipl.-lng. Johan Kroeger, Advisory Council of Hamburg Managing Director of Possehl Erzkontor GmbH, Lübeck Hans Jakob Kruse, Professor Dr. Rolf Stödter, Chairman, Spokesman of the Board of Managing Directorc, of John T. Essberger, Hamburg Hapag-Lloyd AG, Harnburg Peter Aldag, Dr. Hellmut Kruse, of Otto Aldag, Hamburg Partner in Messrs. Wiechers & Helm, Hamburg Bernhard Arndt, Dr. Herbert C. Lewinsky, Chairman of the Board of Managing Directors, Chairman of the Board of Managing Directors, ALSEN-BREITENBURG Zement- und Kalkwerke GmbH, Mobil Oil A. G. in Deutschland, Hamburg Hamburg Harald List, Konsul Rudolf G. Baader, Wohltorf Partner and Managing Director, Nordischer Maschinenbau Rud. Baader, Lübeck Norbert Lorck-Schierning, Georg W. Claussen, Partner and Managing Director of Pott + Racke GmbH & Chairman of the Board of Managing Directors, Co. KG, Flensburg Beiersdorf AG, Hamburg Ernst-Roland Lorenz-Meyer, Herbert Dau, of Ernst Russ, Harnburg Chairman of the Board of Managing Directors, Dipl.-Kfm. Ewald Marby, Hamburg-Mannheimer Versicherungs-AG. Hamburg Member of the Board of Managing Directors. Dr. Manfred Fischer, Hemmoor Zement AG, Hernmoor (Oste) Chairman of the Board of Managing Directors, Hans Heinrich Matthiessen, Gruner + Jahr AG & Co., Harnburg Member of the Supervisory Board, Konsul Hans Hagelstein, Mobil Oil A. G. in Deutschland, Hamburg Owner of HATRA-Alfred Hagelstein Maschinenfabrik Jobst von der Meden, und Schiffswerft, Lübeck-Travernünde Chairman of the Board of Managing Directors, Dr.-lng. Dr.-lng. E. h. Rudolf Hell, Albingia Versicherungs-AG, Hamburg Chairman of the Supervisory Board, Dr.-lng. Rudolf Hell Werner Otto, GmbH, Kiel Principal Partner and Chairman of the Advisory Council Dr. Norbert Henke, of Otto Versand, Hamburg Chairman of the Board of Managing Directors, Howaldtswerke Deutsche Werft AG Hamburg und Kiel, Kiel Liselotte V. Rantzau, of Deutsche Afrika-Linien G.m.b.H., Hamburg Andreas Jepsen, Chairman of the Supervisory Board and of the Board Bernhard Rothfos, of Managing Directors, Danfoss A/S, Nordborg/Denmark of Bernhard Rothfos, Hamburg Joachim V. Schinckel, Dip\.-lng. Heinz Alten, Hamburg Chairman of the Management Board, Linke-Hofmann-Busch Waggon-Fahrzeug-Maschinen GmbH, Gustav Schurfeld, Salzgitter-Watenstedt of G. Schürfeld & Co., Hamburg Dr.-lng. Karl Andresen, Dipl.-Kfrn. Horst Seidel, Chairman of,the Board of Managing Directors, Managing Director of Rud. Otto Meyer, Hamburg Kabel- und Metallwerke Gutehoffnungshütte AG, Hannover

Dr. Rudolf Seidel, Alfred Belling, of Ernst Komrowski & Co., Hamburg of Maschinenfabrik Stahlkontor Weser Lenze KG, Hameln

Lolke Jan Smit, Dr. oec. Walther H. Buchler, Chairman of the Management of Partner and Managing Director, Allgemeine Deutsche Philips Industrie GmbH, Hamburg Messrs. Buchler & Co., Braunschweig

Herbert Tiefenbacher, Dr. Carl-Ernst Büchting, Chairman of the Board of Managing Directors, Chairman of the Board of Managing Directors, Oelmühle Hamburg AG, Hamburg Kleinwanzlebener Saatzucht AG vorm. Rabbethge & Giesecke, Einbeck Paul Tiefenbacher, Dip1.-Kfm. Dieter Busch, of Paul Tiefenbacher & Co., Hamburg Member of the Management Board, Günther Wagner Pelikan-Werke GmbH, Hannover Dip1.-Kfrn. Paul Tipprnann, Managing Director of Norddeutsche Salinen GmbH, Stade Jürgen von Damm, Chairman of the Board of Managing Directors, Dr. h. C. Alfred Toepfer, Mühle Rüningen AG, of Alfred C. Toepfer, Hamburg Rüningen über Braunschweig

Gyula Trebitsch, Helmut Graf, Chairman of the Management of STUDIO HAMBURG Lessee of the Domain Marienburg, Post Hildesheim Atelierbetriebsgesellschafi mbH. Hamburg Karl Graf, Diplom-Landwirt and landowner, Carl-Arend Weingardt, Söderhof über Salzgitter-Ringelheim Chairman of the Management Board, Deutsche Unilever GmbH, Hamburg Hans-Günther Hage, Partner in Senkingwerk GmbH KG, Hildesheim Dr. Peter Weinlig, Dr. Carl H. Hahn, Chairman of the Board of Managing Directors, Chairman of the Board of Managing Directors, Phoenix Gummiwerke AG, Hamburg-Harburg Continental Gummiwerke AG, Hannover Johannes C. Welbergen, Dipl. Math. Walter Hannecke, Chairman of the Board of Managing Directors, Chairman of the Boards of Managing Directors, Deutsche Shell AG, Hamburg Magdeburger Versicherungs-Gesellschaften, Hannover Dr. Erich von Hantelrnann, Chairman of the Board of Managing Directors, Advlrory Councll of Hannover Wolff Walsrode AG, Walsrode Hans-Joachim Götz, Chairmen, Klaus Heibey, Spokesman of the Management, Günther Wagner Pelikan- Partner and Managing Director of Werke GmbH, Hannover Messrs. Wullbrandt & Seele, Braunschweig Ulrich Jorgens, Dr. jur. Ulrich Schallemacher, Partner in Messrs. Adolf Schaper, Hannover Member of the Board of Managing Directors, Salzgitter AG, Salzgitter-Drütte Dr. Heinz Klautschke, Chairman of the Board of Managing Directors, Dr. jur. Hans Schuberth, Doornkaat AG, Norden (Ostfriesland) Partner and Managing Director of National-Jürgens-Brauerei and Schuberth-Werk, Braunschweig Professor em. Dr.-lng. Friedrich Wilhelm Kraemer, Architect, Braunschweig/Cologne Hans-Christian Seeliger, Landowner, Rittergut Wendessen über Wolfenbüttel Dipl.-lng. Lothar Lange, Member of the Board of Managing Directors, Dr. Ernst-Heinrich Steinberg, TEUTONIA Misburger Portland-Cementwerk, Misburg of Chr. Hostmann-Steinberg'sche Farbenfabriken, Celle

Paul Lepach, Hans-Erich Thoering, Spokesman of the Board of Managing Directors, Member of the Management Board of Touristik Union International GmbH KG, Hannover Otto Kreibaum Gesellschaft für Inductriebeteiligungen mbH, Salzhemmendorf-Lauenstein Herbert Marx, Braunschweig Dipl.-Kfm. Werner Wendrich, Konsul Dipl.-Brauing. Jürgen Middendorff, Spokesman of the Board of Managing Directors, Kali-Chemie AG, Hannover Managing Director, Brauerei Herrenhausen GmbH, Dr. jur. Rolf Arend Winter, Hannover-Herrenhausen Member of the Board of Managing Directors, Peter Müller, Braunschweigische Kohlen-Bergwerke, Helmstedt, and Member of the Board of Managing Directors, Spokesrnan of the Management, Beamtenheimstättenwerk Gemeinnutzige Bausparkasse Elektrowerke AG, Berlin, Helmsredt für den öffentlichen Dienst GmbH, Hameln Dr. jur. Reinhard Wolff, Hans Herbert Munte, Chairman of the Board of Managing Directors, Chairman of the Management Board, Braunschweigische Maschinenbauanstalt, Braunschweig Schmalbach-Lubeca GmbH, Braunschweig

Dr. jur. Dr. rer. pol. Walter Nettelrodt, Member of the Board of Managing Directors, Advisory Councll of Mainz Allgemeine Transportmittel AG, Bad Pyrmont/Dusseldorf Konsul Dr. Walter Kalkhof-Rose, Chairman, Heinz Pförtner, Partner in Ernst Kalkhof, Chemische Fabrik, Partner in Messrs. Sonnen-Werke Sieburg & Pförtner, and Kalkhof GmbH Petersen & Stroever, Managing Director Seesen, and M. Bassermann & Cie., Schwetzingen, Seesen of Resart Ihm AG, Partner in Resart GmbH, Mainz Dr. jur. Gerhard Prinz, Member of the Board of Managing Directors, Senator Walter H. Pierstorff, Deputy Chairman, Daimler-Benz Aktiengesellschaft, Stuttgart Mainz

Dr. jur. Hans Samwer, Dipl.-Kfm. Hans Helmut Asbach, Chairman of the Boards of Managing Directors, Partner in Asbach & Co., Weinbrennerei, Rüdesheim Gothaer Lebensversicherung a. G. and (Rhein) Gothaer Allgemeine Versicherung AG, Göttingen Dr. jur. Karl-Heinz Schaer, Dr. Folkert Bellstedt, Member of the Board of Managing Directors, Partner and Managing Director, Allgäuer Alpenmilch AG, Munich C. H. Boehringer Sohn, Chemische Fabrik, lngelheim (Rhein) Dr. rer. pol. Wolfgang Corsten, Sissy Richter-Boltendahl, Partner in Hubert Zettelmeyer KG, Maschinenfabrik, Konz Partner and Managing Director. nr. Trier Weinbrennerei Scharlachberg Sturm & Co., Bingen

Dr.-lng. Alfred Doderer-Winkler, Max Rüegger, Partner and Managing Director. Directeur GBn4ral Adjoint, Winkler & Dünnebier, Maschinenfabrik und Societe Swiss pour I'lndustrie Horlogbre Eisengiesserei, Neuwied Management Services S. A., Bienne (Switzerland)

Rudolf Fissler, Dr. Norbert Steuler, Partner and Managing Director. Partner and Managing Direcfor of Fissler GmbH, Aluminium- und Metallwarenfabrik, Steuler-lndustriewerke GmbH, Höhr-Grenzhausen Idar-Oberstein Albert Sturm, Dipl.-Kfm. Dr. jur. Claus Freiling, Partner in Asbach & Co., Weinbrennerei, Member of the Board of Managing Directors, Rüdesheim (Rhein) Rasselstein AG, Neuwied Werner Tyrell, Dr. jur. Dr. h. C. Walter Halstrick, Vineyard Proprietor, Trier-Eitelsbach, Karthäuserhof Chairman of the Management Board of Papierwerke Halstrick GmbH, Raubach, Euskirchen-Stotzheim Dipl.-Kfm. Karl-Wilhelm Westphal, Member of the Management Board of Blendax-Werke, Heinz Hasslacher, Maint Partner in Deinhard & Co. KGaA., Sektkellereien und Weinexport, Koblenz C. D. Friedrich Wilhelm Fürst zu Wied, Neuwied Dr. Heinrich J. Klein, Member of the Management Board, Jacques Zwingelstein, JENAer GLASWERK Schott & Gen.. Mainr Wiesbaden Hellmuth Lemm, Partner and Managing Director, Advisory Council of Mannheim lndustriewerke Lemm & Co. GmbH and Romika Lemm & Co. GmbH, Gusterath-Tal (Kreis Trier) Dr. Rolf Magener, Chairman, Dr. Wilhelm Lichtenberg, Heidelberg Chairman of the Board of Managing Directors, Basalt AG, Linz (Rhein) Dr. Nikolaus Stuckrnann, Deputy Chairman, Chairman of the Supervisory Board, Dr. rer. pol. habil. Rudolf Meirnberg, RHENUS Aktiengesellschaft, Mannheirn Professor of Economics at Mainz University, Neu lsenburg Felix Altenhoven, br.-lng. Fritz Meyer, Chairman of the Board of Managing Directors, Sole Managing Director of Grünzweig + Hartmann und Glasfaser AG, Ludwigshafen Die blauen Quellen Fritz Meyer & Co. AG, Rhens (Rhein)

Dr. oec. Dipl.-Kfrn. Karlhanns Peter Polonius, Dr. phil. Ludwig von Bassermann-Jordan, Chairman of the Management Board of Vineyard Proprietor, Deidasheim (Pfalz) Linde Hausgeräte GmbH, Mainr-Kostheim Fritz Becker, Dipl.-Chemiker Manfred Rhodius, Member of the Board of Managing Directors, Partner and Managing Director of Hugo Stinnes Aktiengesellschaft, Mülheim (Ruhr), Gebrüder Rhodius GmbH & Co. KG, Burgbrohl Mannheim Kurt Beckh, Sven Hagander, Managing Director of F. R. Kammerer GmbH, Pforzheim Partner in Naturin-Work Becker & Co., Weinheim (Bergstrasse) Max Berk, Partner and Managing Director, Assessor Hans C. W. Hartmuth, Max Berk Group, Heidelberg Chairman of the Board of Managing Directors, Albert- Frankenthal AG, Frankenthal (Pfalz) Professor Dr. rer. nat. Ernst Biekert, Dr. rer. pol. Klaus Hoesch, Chairman of the Board of Managing Directors. Knoll AG, Chemische Fabriken, Ludwigshafen (Rhein) Partner in Schoeller & Hoesch KG, Gernsbach (Baden) Dr. rer. pol. Heinrich Hornef, Dr. Albert Bürklin, Deputy Managing Director, Vineyard Proprietor, Wachenheim (Pfalz) Boehringer Mannheim GmbH, Mannheim Dr. rer. pol. Dr.-lng. e. h. Gottfried Cremer, Chairman of the Supervisory Board, Deutsche Steinzeug- Eberhard Kramer, und Kunststoffwarenfabrik Verwaltungs-Aktiengesellschaft, Partner in Werner & Nicola Germania Mühlenwerke, Jun kersdorf Mannheim

Erich Eilebrecht-Kemena, Dipl.-lng. Wolfgang Kuhborth, Chairman of the Advisory Council, Spokesman of the Board of Managing Directors. Salvia-Werk, Gesellschaft zur Herstellung Klein, Schanzlin & Becker AG, Frankenthal (Pfalz) chemischer und pharmazeutischer Erzeugnisse mbH, Homburg (Saar) Dipl.-Kfm. Dr. rer. pol. Paul Lindemann, Chairman of the Board of Managing Directors, Peter Engelhorn, Röhrenlager Mannheirn AG, and Member of the Board Partner in Dynamidon-Werk Engelhorn & Co. GmbH, of Managing Directors, Ferrostaal AG, Essen, Mannheim Mannheim-Waldhof, Monza (Italy) Dr. Hans Georg Mayer, Dipl.-lng. Hans Fritz Fischer, Partner in Gummi-Mayer KG, Fabrik für Reifenerneuerung, Member of the Supervisory Board, Landau (Pfalz) E. Holtzmann & Cie. AG, Weisenbachfabrik im Murgtal (Baden) Karl Meirer, Partner and Managing Director, Dipl.-lng. Hans Glöyer, Renolit-Werke GmbH, Worms Member of the Board of Managing Directors, Dipl. rer. pol. Helmut Metzger, Rheinelektra AG, Mannheim. and Lahmeyer AG, Chairman of the Board of Managing Directors, Frankfurt (Main), Mannheim Industrie-Werke Karlsruhe Augsburg AG, Karlsruhe Dr. phil. Heinz Götze, Dr. Bernhard Mumm, Partner in Springer-Verlag KG, Member of the Board of Managing Directors, Berlin-Heidelberg-New York, Heidelberg Süddeutsche Zucker AG, Mannheim

Artur Grosse, Alfred Hubertus Neuhaus, Partner in Messrs. Henkel & Grosse, Pforzheim Partner and Managing Director, August Neuhaus & Cie., Schwetzingen Georg Enoch Reichsfreiherr von und zu Guttenberg, Schloss Guttenberg (Oberfranken) Dipl.-Kfm. Erich Quilitz Chairman of the Boards of Managing Directors Fritz Häcker, of Mannheimer Versicherungsgesellschaft and Chairman of the Board of Managing Directors, Mannheimer Lebensversicherungs Gesellschaft AG, Gesellschaft für Spinnerei und Weberei, Ettlingen (Baden) Mannheirn Helmut Raiser, Advisory Council of Munich Chairman of the Board of Managing Directors. Bohlen-Industrie AG, Essen Dr. Dr.-lng. E. h. Lothar Rohde, Chairman, Partner in Messrs. Rohde &Schwarz, Munich Dipl.-Volkswirt Alfred Reiert, Managing Director of Thermal-Werke, Wärme-, Dipl.-Kfm. Hermann Bahner, Kälte- und Klimatechnik GmbH, Walldorf (Baden) Partner and Managing Director, ELBEO-Werke, Augsburg Dr. jur. Hans J. Reuther, Max Böhler, Partner and Managing Director. Bopp & Reuther GmbH, Partner in BOWE Böhler &Weber KG. Mannheim Maschinenfabrik, Augsburg

Dipl.-Kfm. Dr. Hugo Rhein, Heinrich Brauer, Member of the Board of Managing Directors, Member of the Management Board. Badenwerk AG, Karlsruhe Sigri Elektrographit GmbH, Meitingen nr. Augsburg

Carl Philipp Ritter, Paul Brochier, Partner in Ottmann-Thomas KG, Kaiserslautern Partner and Managing Director, Hans Brochier. Rohrleitungsbau. Nuremberg Professor Dr. jur. Wolfgang Schilling, Lawyer, Mannheim Christian Gottfried Dierig, Chairman of the Board of Managing Directors, Dipl.-lng. Dr.-lng. e. h. Wilhelm Schoch, Dierig Holding AG, Augsburg Member of the Board of Managing Directors, Grosskraftwerk Mannheim AG, Mannheim Ing. grad. Roland Dorschner, Chairman of the Board of Managing Directors, Dipl.-Kfm. Peter Schuhmacher, Hutschenreuther AG, Selb Member of the Board of Managing Directors, Oskar Eckert, Portland-Zementwerke Heidelberg AG, Heidelberg Vice-President. Bayerische Landesanstalt für Dr. rer. pol. Wolfgang Schwabe, Aufbaufinanzierung, Munich Partner and Managing Director, Dr. Willmar Schwabe Dr.-lng. E. h. Hermann Fendt, GmbH, Karlsruhe-Durlach Partner in X. Fendt & Co. Maschinen- und Schlepperfabrik, Dr. Robert Schwebler, Marktoberdorf Chairman of the Board of Managing Directors, Josef P. Freudorfer, Karlsruher Lebensversicherung AG, Karlsruhe Chairman of the Board of Managing Directors, Flachglas AG DELOG-DETAG, Fürth Dip1.-lng. Alfred Selbach, Member of the Board of Managing Directors, Dr. Hans Heinz Griesmeier, Brown, Boveri & Cie. AG, Mannheim Furth

Erhard Servas, Wilhelm von Gwinner, Member of the Board of Managing Directors, Munich Schuh-Union AG, Rodalben (Pfalz) Dipl.-lng. Ernst Haindl, Dr.-lng. E. h. Hubert H. A. Sternberg, Spokesman of the Management Board, Honorary Member of the Supervisoty Board, Haindl Papier GmbH, Augsburg Heidelberger Druckmaschinen AG, Heidelberg Dieter Heckmann, Dr. Burkhard Wildermuth, Partner and Managing Director, Lawyer, Mannheim Amberger Kaolinwerke GmbH, Hirschau/Opf. F.-F. Herzog, Dipl.-Forstwirt General Manager and Managing Director, Hippolyt Freiherr Poschinger von Frauenau, NCR GmbH, Augsburg President of the Bavarian Senate, Frauenau (Niederbayern)

Andreas Michael Huck, Professor Dr. Albert Prinzing, Partner in Münchener Zeitungsverlag KG, Chairman of the Management, Münchner Merkur and F. Bruckmann KG, Munich Osram GmbH Berlin-Munich, Munich

Christian Kloepfer, Dr. Walter Reichet, Partner and Managing Director, Klöpfer 8 Königer, Chairman of the Boards of Managing Directors. Sägewerke und Holzhandlung, Munich Aachen-Leipziger Versicherungs-AG, Berlinische Feuer-Versicherungs-Anstalt, Dr.-lng. Rudolf Kremp, EOS Lebensversicherung AG, Vereinigte Krankenversicherung AG, Munich Member of the Board of Managing Directors, Agfa AG, Leverkusen and Agfa-Gevaert-AG, Leverkusen, Karl-Erhard Richtberg, and Gevaert-Agfa NV, Mortsel (Antwerp), Munich Partner in Karl Richtberg KG, Managing Director of Durisol Leichtbaustoffe Dr. Karl H. Krengel, GmbH & Co. KG, Bingen (Rhein) Mernber of the Board of Managing Directors, Bergmann Elektricitäts-Werke AG, Munich Dr. Otto Schedl, Former Bavarian Minister of State for Financial Affairs, Dipl.-lng. Eberhard von Kuenheim, Munich Chairman of the Board of Managing Directors, Bayerische Motoren Werke AG, Munich Dr. Walter Silbermann, Owner of F. B. Silbermann and Silbermann & Co., Dr. Hermann Linde, Augsburg Spokesman of the Board of Managing Directors, Linde AG, MunichIWiesbaden, Munich Dipl.-lng. Georg Thoma, Chairman of the Supervisory Board, Dr. Gerhard Mangold, Leonische Drahtwerke AG, Nuremberg Chairman of the Board of Managing Directors. Schubert & Salzer Maschinenfabrik AG, lngolstadt Dr. Gerhard Tremer, Member of the Board of Managing Directors, Ekkehard Maurer, Bayerische Landesbank Girozentrale, Munich Member of the Management Board, Wacker-Chemie GmbH, Konsul Joachim Vielmetter, Munich Partner in Knorr-Bremse KG, Berlin-Munich, Munich Dr. Wolfgang Müller, Otto Waldrich, Oeputy Member of the Board of Managing Directors, Partner and Managing Director of Werkzeugmaschinen- Maschinenfabrik Augsburg-Nürnberg AG, Munich fabrik Adolf Waldrich Coburg, Coburg

Dr. Klaus Müller-Zimmermann, Professor Dr. C. F. Freiherr V. Weizsäcker, Manager of Siemens AG, Munich Head of the Max-Planck-Institut zur Erforschung der Lebensbedingungen der wissenschaftlich-technischen Welt, Siegfried Otto, Starnberg Chairman of the Management Board Dr. Eugen Wirsching, and Principal Partner of Member of the Board of Managing Directors, Giesecke & Devrient GmbH, Munich Ackermann-Göggingen AG, Munich Dr. Alfred Pfeiffer, Dipl.-Kfm. Josef Woerner, Mernber of the Board of Managing Directors, Partner in Messrs. Sager 8 Woerner, Süddeutsche Kalkstickstoff-Werke AG, Trostberg Hoch-, Tief- und Strassenbau, Munich Gerhard Wolf, Dr. jur. Georg Büchner, Managing Director of Ireks-Arkady GmbH, Kulmbach Member of the Board of Managing Directors, Württembergische Feuerversicherung AG in Stuttgart, Dr. Helmut Wolf, Stuttgart Chairman of the Board of Managing Directors, Krauss-Maffei AG, Munich-Allach Dr. rer. pol. Günter Danert, Member of the Board of Managing Directors, Curt M. Zechbauer, Standard Elektrik Lorenz AG, Stuttgart Partner in Mayser's Hutfabriken and in Max Zechbauer, Tabakwaren, Munich Dr. rer. pol. Franz Josef Dazert, Chairman of the Board of Managing Directors, Salamander AG, Kornwestheim

Advisory Council of Stuttgart Dipl.-Kfm. Horst G. Esslinger, Managing Director of C. H. Knorr GmbH, Heilbronn Dipl.-lng. Helrnut Eberspächer, Chairman, Partner and Managing Director, Wolf-Dieter Freiherr von Gemmingen-Hornberg, Messrs. J. Eberspächer, Esslingen Member of the Supewisory Board, Württembergische Metallwarenfabrik, Dr. jur. Werner Henneberg, Deputy Chairman, Geislingen (Steige), Friedenfels (Oberpfalz) Member of the Board of Managing Directors. Zahnradfabrik Friedrichshafen AG, Friedrichshafen Dipl.-lng. Walther Grot, Partner and Managing Director, Dr. jur. Peter Adolff, Messrs. Theodor Groz & Söhne & Ernst Beckert Member of the Management Board, Nadelfabrik Commandit-Gesellschaft, Albstadt-Ebingen Wacker-Chemie GmbH, Munich Dr. Richard Hengstenberg, Walter Bareiss, Partner and Managing Director of Rich. Hengstenberg, Chairman of the Supervisory Board, Weinessig-, Sauerkonserven- und Feinkostfabriken, Schachenmayr, Mann & Cie. GmbH, Salach Esslingen

Dr.-lng. Rolf Boehringer, Dipl.-lng. Max Henzi, Chairman of the Supewisory Board, Chairman of the Management Board, Escher Wyss GmbH, Gebr. Boehringer GmbH, Göppingen Ravensburg

Generaldirektor Walther A. Bosenberg, Erwin Hermann, Chairman of the Management Board, Managing Director of Mahle GmbH, Stuttgart IBM Deutschland GmbH - Hauptverwaltung -, Stuttgart C. H. Friedrich Wilhelm Fürst von Hohenzollern, Piero Bonelli, Sigmaringen Honorary Chairman of DEUTSCHE FlAT Aktiengesellschaft, Heilbronn Dipl.-lng. Walter Hohner, Member of the Board of Managing Directors, Rolf Breuning, Matth. Hohner AG, Trossingen Spokesman of the Management Board, Motoren- und Turbinen-Union (MTU) München GmbH, Georg von Holtrbrinck, and of the Management Board, Motoren- und Turbinen- Partner and Managing Director, Union (MTU) Friedrichshafen GmbH, Friedrichshafen Deutscher Bücherbund KG, Stuttgart

Dr. Wilfried Bromm, Wilhelm Kraut, Member of the Board of Managing Directors, Partner end Managing Director, Württembergische Metallwarenfabrik, Geislingen (Steige) BIZERBA-Werke Wilhelm Kraut KG, Balingen (Württemberg) Helmut Leuze, Dr. jur. Christoph Wocher, Partner in Leuze Textil KG Managing Director, Bausparkasse Gemeinschaft der and Partner in C. A. Leuze (oHG), Owen (Teck) Freunde Wüstenrot, gemeinnützige GmbH, Ludwigsburg

Dipl.-Volkswirt Alfred Mahler, S. K. H. Herzog Philipp von Württemberg, Chairman of the Supervisory Board, Schloss Altshausen nr. Saulgau Unifranck Lebensmittelwerke GmbH, Ludwigsburg

Otto Julius Maier, Advisory Council of Wuppertal Partner and Managing Director, Otto Maier Verlag KG, Ravensburg Harald Frowein Sen., Chairman, Ekhard Freiherr von Maltzahn, Wuppertal Hubbelrath Walter Kaiser, Deputy Chairman, Dr. rer. pol. Ulrich Palm, Partner and Managing Director, Gebr. Kaiser & Co. Leuchten KG Arnsberg (Westf.) Member of the Board of Managing Directors, Wieland-Werke AG, Ulm Dr. Armin Albano-Müller, Dipl.-Kfm. Karl F. W. Pater, Partner and Managing Director, Schwelrner Eisenwerk Müller &Co. GmbH, Schwelrn Executive Manager of Daimler-Benz AG, Stuttgart Manfred von Baum, Dr. jur. Alfred Rieger, Partner in von Baum Partner and Managing Director, Verwaltung KG, Wuppertal P. Jenisch & Co. Strickwarenfabrik, Nürtingen Wilhelm Bomnuter, Dr. Hans Ruf, Partner and Managing Director. Vossloh-Werke Chairman of the Board of Managing Directors, GmbH, Werdohl DLW Aktiengesellschaft, Bietigheim Dipl.-Kfm. Helmut Bremshey, Dr. h. C. Karl-Erhard Scheufelen, Member of the Board of Managing Directors, Partner and Managing Director, Bremshey AG, Solingen Papierfabrik Scheufelen, Oberlenningen (Württemberg) Dr. Wolfgang Busch, Dr. jur. Paul A. Stein, Partner and Managing Director, Managing Director of Robert Bosch GmbH, Stuttgart Bergische Stahl-Industrie, Remscheid Dr.-lng. Helmut Steinmann, Hans Colsman, Chairman of the Management Board, Messrs. Werner & of Gebrüder Colsman, Essen Pfleiderer Maschinenfabriken und Ofenbau, Stuttgart Rechtsanwalt Dr. Heinz Frowein, Dr. rer. pol. Rüdiger Stursberg, Wuppertal Member of the Board of Managing Directors, Hans Joachim Fuchs, Aesculap-Werke AG formerly Jetter & Scheerer, Senator E. h., Partner and Managing Director Tuttlingen of the Otto Fuchs Metallwerke, Meinerzhagen (Westf.) S. E. Max Willibald Erbgraf von Waldburg Dr. Michael Girardet, zu Wolfegg und Waldsee, Partner in W. Girardet, Wuppertal Schloss Wolfegg Dipl.-Kfm. Hartwig Göke, S. D. Georg Fürst von Waldburg zu Zeil Chairman of the Board of Managing Directors, und Trauchburg, Rheinisch-Westfälische Kalkwerke AG, Schloss Zeil Wuppertal Wilhelm Hardt, Dr.-lng. Erich Mittelsten Scheid, Partner in Messrs. Johann Wülfing & Sohn, Chairman of the Advisory Council of Vorwerk 8 Co., Rernscheid Wuppertal

Kurt Henkels, Dipl.-lng. Günter Peddinghaus, Partner and Managing Director, Senator E. h., Partner and Managing Director, Stocko Metallwarenfabriken Henkels & Sohn, Wuppertal Carl Dan. Peddinghaus KG, Ennepetal Professor Dr.-lng. Dr. h. C. Kurt Herberts, Senator E. h., Partner in Dr. Kurt Herberts & Co. GmbH Hans Walter Pfeiffer, formerly Otto Louis Herberts, Wuppertal Owner of Ohler Eisenwerk Theob. Pfeiffer, Plettenberg

Dipl.-Volkswirt Kurt Honsel, Member of the Board of Managing Directors, Albrecht R. Pickert, Honsel-Werke AG, Mecchede Managing Director of R. & G. Schrnole Metallwerke, Menden (Sauerland) Dr. Arnold Hueck, Partner in Eduard Hueck KG, Konsul Albert Rampelberg, Metallwalz- und Presswerk, Lüdenscheid Managing Director. Deutsche Solvay-Werke GmbH, Solingen Paul Jagenberg, Partner in Jagenberg & Cie., Solinger Papierfabrik, Solingen Dr. Walter Salzer, Member of the Board of Managing Directors. Dipl.-Kfm. Günter Kind, Bayer AG, Leverkusen Partner in Steinmüller Verwaltungsgesellschaft mbH, Gummersbach Hans Joachirn Schlange-Schöningen, Deputy Chairman of the Board of Managing Directors, Dr.-lng. Jochen Kirchhoff, AKZO N.V., Arnheim (Netherlands) Partner and Managing Director, Stephan Witte & Co., lserlohn Dr. Christian F. Schmidt-Ott, Dipl.-Wirtsch.-lng. Diether Klingelnberg, Partner and Managing Director. Partner and Managing Director. Messrs. Jung & Sirnons, Haan (Rhld.) W. Ferd. Klingelnberg Söhne, Rernscheid Georg H. Schniewind, Dipl.-lng. Kurt Krawinkel, Partner in H. E. Schniewind, Haan (Rhld.) Chairman of the Advisory Council, Leop. Krawinkel, Bergneustadt Hans Vaillant, Dr. Manfred Luda, Chairman of the Advisory Council, Lawyer and Notary, Meinerzhagen (Westf.) Joh. Vaillant KG, Remscheid

Dipl.-lng. Dieter Metzenauer, Dr. Hans Günther Zempelin, Partner and Managing Director, Spokesman of the Board of Managing Directors, Enka Metzenauer &Jung GmbH, Wuppertal Glanzstoff AG, Wuppertal It is our sad duty to announce the deaths of the following rnernbers of our Regional Advisory Councils:

Dr. Otto Happich, Dr. Hans Pahl, Chairman of the Supervisory Board, Partner and Managing Director, Gebr. Happich GmbH, Wuppertal Pahl'sche Gummi- und Asbest-Gesellschaft "PAGUAG", Düsseldorf

Helmut Harmc, Partner in G. L. Peine, Hildesheim Gerhard W. Schulze, Principal Partner, NSM-Apparatebau GmbH KG, Bingen Claus-Gottfried Holthusen, of R. Petersen & Co., Hamburg Heinz Vögele, Chairman of the Supervisory Board, Konsul Ernst Middendorff, Joseph Vögele AG, Mannheim Principal Partner and Managing Director, Brauerei Herrenhausen GmbH, Hannover-Herrenhausen

We shall always remember them with respect and gratitude. Central Offices: Frankfurt (Main) Düsseldorf

Branches at the following places: Bremen Düsseldorf with 14 Sub-Branches with 32 Sub-Branches Aachen Bad Tölz Bremen-Vegesack Düsseldorf-Benrath with 1 Sub-Branch with 5 Sub-Branches Bad Wildungen Bremerhaven Aalen (Württ) Bad Wörishofen with 3 Sub-Branches Duisburg with 19 Sub-Branches Achim (Bz Bremen) Bad Zwischenahn and 1 Paying Office Duisburg-Hamborn Ahaus Balingen Bretten (Baden) with 3 Sub-Branches Ahlen (Westf) Bamberg Brilon Duisburg-Rheinhausen Ahrensburg (Holst) Barsinghausen Bruchsal Duisburg-Ruhrort Albstadt Baunatal Bruhl (Bz Köln) Ebingen (Württ) with 1 Sub-Branch Bayreuth Brunsbüttel now: Albstadt Aldenhoven (Kr Düren) Beckum (Bz Münster) Buchholz i d Nordheide Einbeck Alfeld (Leine) Bühl (Baden) Bendorf (Rhein) Eiserfeld (Sieg) Alsdorf (Rheinl) Bünde Bensberg Eislingen Alsfeld (Oberhess) Burgdorf (Han) Bensheim Eitorf Altena (Westf) Bergen-Enkheim Burgsteinfurt Ellwangen (Jagst) Altenkirchen (Westerw) Bergheim (Erft) now: Steinfurt Elrnshorn Alzey Bergisch Gladbach Burscheid (Rheinl) Elten Amberg Bergneustadt Buxtehude Eltville Andernach Bernkastel-Kues Castrop-Rauxel Emden Ansbach Betzdorf (Sieg) with 1 Sub-Branch Emmendingen Aschaffen burg Celle Beverungen Emmerich Clausthal-Zellerfeld Asperg Biberach (Riss) Emsdetten Attendorn Biedenkopf Cloppenburg Engelskirchen Augsburg Bielefeld Coburg Ennepetal (Westf)-Milspe with 8 Sub-Branches with 7 Sub-Branches Coesfeld with 1 Sub-Branch Aurich Bietigheim (Württ) Crailsheim Ennigerloh Backnang Bingen (Rhein) Cuxhaven Erkelenz Bad Berleburg Blomberg (Lippe) Dachau Erkrath (Bz Düsseldorf) Bad Driburg (Westf) Bocholt with 1 Sub-Branch Erlangen Bad Dürkheim Bochum Darmstadt Eschwege Baden-Baden with 5 Sub-Branches with 5 Sub-Branches Eschweiler Bad Harzburg Bockum-Hövel Datteln (Westf) Espel kamp Bad Hersfeld Böblingen (Württ) Deggendorf Essen Bad Hornburg V d Höhc Bonn Deidesheim with 23 Sub-Branches Bad Honnef with 6 Sub-Branches Delmenhorst Esslingen (Neckar) Bad lburg Botin-Bad Godesberg Detmold Ettlingen (Baden) Bad Kreuznach Boppard Dietzcnbach Euskirchen Bad Lauterberg Borghorst (Westf) Dillenburg Eutin Bad Münstereifel now: Steinfurt Dinslaken (Niederrhein) Fellbach (Württ) Bad Neuenahr Borken with 1 Sub-Branch Flensburg Bad Oeynhausen Bottrop Dormagen (Niederrhein) with 3 Sub-Bratiches Bad Oldesloe Brackwede (Westf) Dorsten Forchheim Bad Pyrmont now: Bielefeld Dortmund Frankenthal (Pfalz) Bad Sachsa (Südharz) Brarnsche (Bz Osnabrück) with 14 Sub-Branches Frankfurt (Main) Bad Salzuflen Braunschweig Dulmen with 23 Sub-Branches with 1 Sub-Branch with 12 Sub-Branches Düren (Rheinl) Frankfurt (Main)-Höchst Bad Segeberg and 1 Paying Office with 1 Sub-Branch Frechen Freiburg (Breisgau) Gronau (Westf) Herzogenrath Kiel with 7 Sub-Branches Gross-Gerau with 1 Sub-Branch with 7 Sub-Branches Freising Gütersloh Heusenstamm Kierspe (Westf) Freudenberg (Kr Siegen) with 1 Sub-Branch Hilden Kirchheim unter Teck Friedberg (Hess) Gummersbach with 1 Sub-Branch Kirchhellen Friedrichsfeld Haan (Rheinl) Hildesheim Kleve (Niederrhein) Friedrichshafen Hagen (Westf) with 3 Sub-Branches with 1 Sub-Branch Fürstenfeldbruck with 6 Sub-Branches Hiltrup Koblenz Fürth (Bay) Haiger now Münster with 1 Sub-Branch with 1 Sub-Branch Hallc (Westf) Hockenheim (Baden) Köln Fulda Hamburg Höhr-Grenzhausen with 21 Sub-Branches with 1 Sub-Branch with 44 Sub-Branches Höxter Köln-Mülheim Gaggenau (Murgtal) and 1 Paying-Office Hohenlimburg Königsbrunn Garmisch-Partenkirchen Hamburg-Altona witli 1 Sub-Branch Königstein (Taunus) Hoherilockstedt Geesthacht Hamburg-Bergedorf Konstanz Holzmindcn with 1 Sub-Brancli Geislingen (Steige) Hamburg-Harburg with 1 Sub-Branch with 1 Sub-Branch Homberg (Niederrhein) Konz ü / Trier now: Duisburg Korbach Geldern Hameln Horn - Bad Meinberg Kornwestheim (Württ) Gelsenkirchen Hamm (Westf) Huckelhoven Korschenbroich with 5 Sub-Branches with 1 Sub-Branch Hückeswagen Krefeld Gengenbach Hanau Hürth (Bz Koln) with 7 Sub-Branches Georgsmarienhütte Hannover Krefeld-Uerdingen with 1 Sub-Branch with 18 Sub-Branches Huttental with 1 Sub-Branch Kreuzau Gerlingcn (Württ) Hann. Münden Husum (Nordsee) Kreuztal (Kr Siegen) Germering Harsewinkel U / Gütersloh Ibbenbüren Kronberg (Taunus) Gernsbach (Murgtal) Haslach (Kinzigtal) Idar-Oberstein Kulmbach Gersthofen Hattingen (Ruhr) with 1 Sub-Branch Laasphe Geseke (Westf) Hausen ü / Offenbach lngelheim (Rhein) Laatzen Gevelsberg Heepen lngolstadt (Donau) Lage (Lippe) Gienyen (Brenz) now: Bielefeld with 2 Siib-Branches Lahnsrein Giessen Heessen (Westf) lserlohn Lahr (Schwarzw) Gifhorn Heidelberg ltzehoe Landau (Pfalz) with 1 Sub-Branch with 4 Sub-Branches Jever Landsberg (Lech) Ginsheim-Gustavsburg Heidenheim (Brenz) Jülich Landshut Gladbeck (Westf) Heilbronn (Neckar) Kaarst Landstuhl with 1 Sub-Branch with 1 Sub-Branch Kaiserslautern Langen (Hess) Goch Heiligenhaus (Düsseldorf) with 1 Sub-Branch Langenfeld (Rheinl) Göppingen Helmstedt Kamp-Lintfort Langenhagen (Han) Göttingen Hemcr Karlsruhe with 1 Sub-Branch with 1 Sub-Branch Hennef (Sieg) with 6 Sub-Branches Lauenburg Goslar Heppenheim Kassel Lauterbach (Hess) with 1 Sub-Branch Herborn (Dillkr) with 5 Sub-Branches Leer (Ostfriesl) Grefrath Herdecke (Ruhr) Kehl Leichlingeri (Rheinl) Grenzach-Wyhlen Herford Kempen (Niederrhein) Leimen Greven (Westf) Herne Kempten (Allgäu) Leinfelden Grevenbroich with 2 Sub-Branches with 1 Sub-Branch Lemgo Griesheim ü / Darmstadt Herten (Westf) Kettwig Lengerich (Wcstf) Gronau (Leine) Herzberg (Harz) Kevelaer Lennestadt Exhibitions and fair stands for many purposes

Ir1 1974 the 10th Football World Cup was held in the Federal Republic ot Germany. The Deutsche Bank's collec- tion of autographs is a reniirider of this great sporting event. Original signa- tures of all thc players in the 16 tearns which participated can be Seen oti foot- balls and display boards. Since 1974 this exhibition has been moving round the branches of the batik (middle pic- ture left). The bank's exhibition of coins and banknotes interests not only coin ex- perts but also a wide section of ttie general public. The coins on display are a reflection of the history, art and econ- orny of our country. At fairs of a local or supra-regional na- ture thc bank is represented by a coti- vertible stand (see the pictures frorn the exhibition "You and your world" iri Hamburg, top and below right). At the fair in Hanover the EBlC banks were represented by a joint office. In future EBlC will appear morc frequently at in- ternational fairs with joint stands, EBlC houses. Leonberg (Württ) Mönchengladbach Oberhausen (Rheinl) Reutlingen Lethmathe (Sauerl) with 8 Sub-Branches with 9 Sub-Branches with 1 Sub-Branch Leutkirch Mönchengladbach-Rheydt Oberkirch (Baden) Rheinbach Leverkusen Moers Oberursel (Taunus) Rheinberg (Rheinl) with 2 Sub-Branches with 2 Sub-Branches Oelde Rheine (Westf) Limburg Monheim (Rheinl) Ohringen with 2 Sub-Branches Lirnburgerhof now: Düsseldorf Oerlinghausen Rheinfelden (Baden) Lindau (Bodensee) Mosbach (Baden) Offenbach (Main) Rheinhausen Lingen Mühlacker (Württ) with 3 Sub-Branches now: Duisburg Lintorf Mühldorf (Inn) Offenburg (Baden) Rheinkamp-Meerbeck now: Ratingeti Mühlheirn (Main) Oldenburg (Oldbg) now: Moers Lippstadt Mülheirn (Ruhr) witti 1 Sub-Branch Rheydt Löhne (Westf) with 1 Sub-Branch Olpe (Westf) now: Mönchengladbach Rinteln (Weser) Lörrach Müllheim (Baden) Opladen with 1 Sub-Branch München Osnabrück Rodenkirchen (Bz Köln) Lohne (Oldb) with 44 Sub-Branches with 5 Sub-Branches Rosenheirn (Bay) Ludwigsburrj (Württ) Münster (Westf) Osterholz-Scharrnbeck Rottenbury with 1 Sub-Braricti with 9 Sub-Branchcs Osterode (Harz) Rottweil Ludwigshafen (Rhein) Munster Ottobrunn Rüsselsheim (Hess) with 6 Sub-Bratichns Nagold Paderborn with 1 Sub-Branch Lübeck Neckarsulrn Papenburg Säckingen with 6 Sub-Branches Neheim-Hüsten Peine Salzgitter-Bad with 2 Sub-Branches Lüdenscheid witti 1 Sub-Branch Pforzheim Salzgitter-Leberistedt Lüneburg Nettetal with 3 Sub-Branches with 1 Sub-Branch Lüneri with 1 Sub-Branch Pfullingcn (Wurtt) Salzgitter-Watenstedt with 1 Sub-Branch Neuburg (Donaii) Pinneberg Neuenrade St. Georgen (Schwarzw) Maikarnrner Pirrnasens Schrnallenberg (Sauerl) Mainz Neu lsenburg with 1 Sub-Branch Schopfheim with 5 Sub-Branches Neumünster Planegg Schorndorf (Württ) Mannheim Neunkirchen (Kr Siegen) Plettenberg with 18 Sub-Brancties Neuss Plochingen Schüttorf Schwäbisch Gmünd Marbach with 4 Sub-Branches Po rz with 1 Sub-Branch Marburg (Lahn) Neustadt (b Coburg) Quakenbrück Schwäbisch Hall Marl (Kr Recklinghause!n) Neustadt (Weinstr) Radolfzell Mayen Neu-Ulrn Rastatt Schweinfurt Schwelm Meckenheim (Rheinl) Neuwied Ratingen Meerbusch with 1 Sub-Brarich with 3 Sub-Branches Schwenningen (Neckar) with 1 Sub-Branch Neviges Raunheim now: VS-Schwenningen Meinerzhagen (Westf) Nicdcr-Roden Ravensburg Schwerte (Ruhr) Melle Nienburg (Weser) with 1 Sub-Branch Schwetzingcn with 1 Sub-Bratich Norden Recklinghausen Seesen Memrningen Norderney Regensburg Sennestadt Menden (Sauerl) Norderstedt with 4 Sub-Bratichcs now: Bielefeld Mepperi Nordhorn Reiribek (Bz Hamburg) Siegbcirg Mettmann Norf Remagen Siegen Metzingen (Württ) now: Ncuss Rernscheid with 1 Sub-Branch Minden (Wcstf) Nürnberg witti 4 Sub-Branches Siegertsbrunn Misburg with 13 Siiti-Bratichcs Rernscheid-Lennep Sindelfingen now: Hannover Nürtingen Rendsburg Singen (Hohentwiel) Soest Tübingen Warendorf Wiesbaden Solingen witli 1 Sub-Branch Wasseralfingen (Württ) with 6 Sub-Branches with 2 Sub-Branchcs Tuttlingen Wattenscheid Wiesloch Solingen-Ohligs Übach-Palenberg with 1 Sub-Branch Wilhelmshaven with 1 Sub-Branch Solingen-Wald Überlingen (Bodensee) Wedel (Holst) Willich (Bz Düsseldorf) Soltau Uelzen Weener (Ems) with 1 Sub-Branch Sonthofen Ulm (Donau) Weg berg Wipperfürth Spengc with 1 Snb-Branch Wehr (Baden) Wissen (Sieg) Speyer Unna Weiden (Opf) Witten Sprendlingen (Hess) Vechta Weiden (Bz Köln) with 2 Sub-Branches Sprockhövel (Westf) Velbert (Rheinl) Weil (Rhein) Wittlich Stade Verden (Aller) Wörth am Rhein Weilheim Stadtlohn Verl Weingarten (Württ) Wolfenbüttel Starnbery Viernheim (Hess) Wolfsburg Weinheim (Bergstr) Steinfurt with 4 Sub-Branches Viersen with .I Sub-Branch with 1 Sub-Branch with 3 Sub-Branches Worms Weissenthurm Stolberg (Rheinl) Villingen (Schwarzw) Wülfrath Wenden Straubing now: VS - Villiiiqen Würselen (Kr Aachen) now: Braunschweig Stuttgart Vohburg Würtburg Werdohl wilh 14 Sub-Bratiches Vreden (Westf) with 2 Sub-Branches Werl (Westf) Stuttgart-Bad Cannstatt Wahlstedt Wuppertal-Elberfeld Wermelskirchen Sundern (Sauerl) Waiblingen with 15 Sub-Branches Wernau and 1 Paying Office Tailfingen Waldbröl Wuppertal-Barmen now: Albstadt Waldkirch (Breisgau) Werne Titisee-Neustadt Waldshut Wesel (Niederrhein) Wuppertal-Cronenberg with 1 Sub-Branch Wuppertal-Roncdorf Tönisvorst Walsum Traben-Trarbach now: DuisburQ Wesseling (Bz Köln) Wyler (Kr Kleve) Triberg (Schwarzw) Waltrop Westerland Xanten Trier Wangen (Allgäu) Wetzlar Zell (Mosel) with I Sub-Branch Wanne-Eickel Wickrath Zirndorf Troisdorf with 1 Sub-Branch now: Mönchengladbach Zweibrücken Holdings in German Banks

Berliner Disconto Bank Aktiengesellschaft, Berlin - 69 Offices

Saarländische Kreditbank Aktiengesellschaft, Saarbrücken .7Sub-Branches Further Offices in the Saar: Bexbach, Dillingen, Homburg - 1 Sub-Branch, Lebach, Merzig, Neunkirchen . 1 Sub-Branch, Saarlouis, St. Ingbert, Völklingen

Deutsche Centralbodenkredit-Aktiengesellschaft, Berlin - Koln

Frankfurter Hypothekenbank, Frankfurt (Main)

Deutsche Kreditbank für Baufinanzierung Aktiengesellschaft, Koln

GEFA Gesellschaft für Absatzfinanzierung mbH, Wuppertal Further Offices: Berlin . 2 Sub-Branches, Frankfurt (Main), Hamburg, Hannover, München, Nürnberg, Stuttgart, Ulm Subsidiary GEFA-Leasing GmbH, Wuppertal

Deutsche Ueberseeische Bank, Berlin - Hamturg Seat of Administration: Hamburg Further Offices: Düsseldorf, Köln, Stuttgart Foreign Offices of the Deutsche Ueberseeische Bank Argentina: Buenos Aires and Rosario (Banco Aleman Transatlantico) Brazil: Sao Paulo (Banco Alemäo Transatlantico) Japan : Tokyo (Deutsche Ueberseeische Bank- Deutsche Bank Group-) Luxembourg: Luxembourg (Deutsche Ueberseeische Bank - Succursale de Luxembourg) Paraguay: Asuncion (Banco Aleman Transatlantico) lndustriebank von Japan (Deutschland) Aktiengesellschaft, Frankfurt (Main) (together with The lndustrial Bank of Japan) Our Bases throughout the World

Compagnie Financiere de la Deutsche Bank AG, Luxembourg

Joint institutions of the EBlC banks* Federal Republic Europäisch-Arabische Bank GmbH, Frankfurt (Main) of German y: Europäisch Asiatische Bank AG, Hamburg Asia : Offices of the Europäisch Asiatische Bank AG, Hamburg: Hong Kong, Jakarta, Karachi, Kuala Lumpur, Singapore Australia: Euro-Pacific Finance Corporation Ltd., Melbourne Belgium: Banque Europeenne de Credit (BEC), Bruscels European-Arab Bank (Brussels) S. A., Brussels European Banks' International Company C. A. (EBIC), Brussels Great Britain: European Banking Company Ltd., London USA: European-American Banking Corporation, New York, Los Angeles and San Francisco European-American Bank & Trust Company, New York European Banking Company Ltd., Chicago Branch, Chicago

UBS-DB Corporation, New York (together with the Union Bank of Switzerland)

Banco Bradesco de lnvestimento S. A., Sao Paulo

European Brazilian Bank Ltd., London

International Mexican Bank Ltd., London lran Overseas Investment Bank Ltd., London

Further participations in banks in Europe : Amsterdam -Athens - Barcelona - Helsinki - Madrid A frica: Abidjan - Brazzaville - Casablanca - Dakar - Libreville - Lome - N'Djamena - Rabat - Yaounde America: Bogota Asia: Bangkok - Bombay - Karachi - Kuala Lumpur - Manila - Seoul- Teheran

Representative offices abroad A. ß. Egypt: Cairo (Dr. Gerhard Behrens) Lebanon: Beirut (Siegfried Brunnenmiller) Australia: Sydney (Detlev Staecker) Mexico: Mexico 1, D. F. (Norberto C. Neckelmann) Brazil: Rio de Janeiro (Hartwig Krieg) Republic of Canada: Toronto South Africa: Johannesburg (European Banks International) (European Banks International) Chile: Santiago (Jan Martens) Soviet Union: Moscow (Dr. Klaus W. Dintelmann) Colombia: Bogota D. E. (Alberto Veciana) Spain: Madrid (Dr. Thomas Feske) France: Paris (Hermann Josef Schmidt) Turkey: lstanbul (Wolfgang Hahn) Great Britain: London (Dr. Harald 0.Witte) Venezuela: Caracas (Claus Peter Tillmanns) Iran : Teheran (Günther F. W. Dicke)

EBlC Banks: Arnsterdam-Rotterdam Bank N.V., Arnsterdam - Banca Commerciale Italiana, Milan - Creditanstalt-Bankverein, Vienna Deutsche Bank AG, Frankfurt (Main) . Midland Bank Ltd., London . Societe Generale, Paris - Societe Generale de Banque S.A., Brussels