Deutsche Bank
Strategy 2020: Delivering Value
Press Conference Frankfurt, 27 April 2015
Jürgen Fitschen and Anshu Jain Co-Chief Executive Officers Strategy 2020: Focusing Deutsche Bank to deliver value
A leading global bank based in Germany
What’s constant What changes
Client-centricity: placing our clients Refocusing on clients who offer at the centre of what we do mutually beneficial partnerships
Moving toward a more focused Keeping a global footprint geographic reach
Maintaining a universal banking Tightening our product perimeter – product offering not all things to all people
Proactive stance on future regulatory direction and robust controls
Deutsche Bank Jürgen Fitschen and Anshu Jain 27 April 2015 1 Deutsche Bank’s unique positioning is a long-term competitive advantage Market position of Deutsche Bank
Positioning of Deutsche Bank Germany Europe Global
Capital markets expertise and global cash /
trade platform CB&S No. 1 Top 1-3 Top 5
Leading domestic retail franchise International reach with No. 1(1) positioned for multi-channel delivery PBC strong home base in Europe
Global model anchored in one of the world’s GTB No. 1 Top 1-3 Top 5-10 strongest economies
Deutsche Global asset and wealth proposition No. 1 Top 1-3 Top 5-10 AWM
(1) Among private sector banks Source: Dealogic, BVI, Coalition, Lipper, BCG, Scorpio, company data Deutsche Bank Jürgen Fitschen and Anshu Jain 27 April 2015 2 Agenda
1 Taking stock
2 Strategy 2020
3 Delivering value
Deutsche Bank Jürgen Fitschen and Anshu Jain 27 April 2015 3 Taking stock: Strategy 2015+ achievements
Balance and Core business balance and performance: All core performance businesses exceeding EUR 1 billion IBIT for the first time(1)
Capital Stronger capital position, with strong deleveraging, de- position risking and near-doubling of CET 1 ratio
More resilient: Substantially invested in infrastructure and Resilience regulatory compliance
Cultural Embedding deep-rooted cultural change change
(1) In FY 2014 Deutsche Bank Jürgen Fitschen and Anshu Jain 27 April 2015 4 In 2012, we identified five key levers
Strong capital base and capital Capital management toolkit
Businesses built on the best people and Competencies world-class products
Focused portfolio of clients and regions Clients based on our ability to generate value
Culture that sustainably rewards Culture performance in line with societal values
Disciplined cost management and Costs consistent productivity gains
Deutsche Bank Jürgen Fitschen and Anshu Jain 27 April 2015 5 Capital: Significantly improved capital strength CRD4, fully loaded, in % CET1 ratio Leverage ratio
RWA, in EUR bn Leverage exposure, in EUR trn
>530 431 ~1.8 1.5
11.1 3.4 ~1.9x ~1.7x
<2.0 <6.0
Jun 2012(1) Mar 2015 Jun 2012(1) Mar 2015
(1) Estimates based on June 2012 Basel 3 / CRD4 rule interpretation Deutsche Bank Jürgen Fitschen and Anshu Jain 27 April 2015 6 Competencies: Four EUR 1 billion+ businesses Reported IBIT, full year(1), in EUR bn
Profit growth outside investment banking… …delivers a better balanced bank
6.8 1.0 Strategic priority: four strong pillars 5.2 IBIT in all four core businesses exceeds 0.2 1.2 52% 0.7 EUR 1bn for the first time 45% 1.3 Robust investment banking earnings 1.5 PBC, GTB, Deutsche AWM in 2014: - 52% of core business IBIT - IBIT up by ~50% since 2012 2.9 3.3 Performance, balance, diversification
2012 2014 Deutsche AWM PBC GTB CB&S
(1) 2014 does not reflect C&A clear-out adjustments as per 1Q2015 disclosure Note: Figures may not add up due to rounding differences Deutsche Bank Jürgen Fitschen and Anshu Jain 27 April 2015 7 Culture: Embedding deep-rooted cultural change
What’s different How we engaged our staff
Responsibility ~700 people added to strengthen controls for controls in businesses Culture and conduct workshops with >6,000 bankers in CB&S Risk ~180 transactions escalated through governance Reputational Risk Management Process
Culture seminars for >400 MDs ~25% of all senior leadership appointments in Germany Diversity were female
Compensation +34% increase in risk culture and compliance 5 years max; strengthened clawbacks deferral trainings globally vs. prior year
Material risk Compensation Negative consequences for ~50 material takers Up to five years; strengthened clawbacks deferral risk takers due to cultural considerations compensation 10 employee teams received Co-CEO sponsored “Living the Values” award Source: HR Culture initiative Deutsche Bank Jürgen Fitschen and Anshu Jain 27 April 2015 8 Costs: Invested significantly in efficiency, controls and systems
Operational Excellence program delivered Investments in our platform
Cost savings, in EUR bn Achieved 2012-2014/ CtA and CtB(3), in EUR bn delta to FY15 target(1) FY14 target(1) ~5.8 1.7 4.5 2.3 1.9 2.8 1.1 1.6
3.3 2.2
Businesses(2) Infrastructure Total 2012 2013 2014 Efficiency investments Regulatory investments Business / stability investments Invested in sustainable, Enhanced regulatory Standardized technology efficient, scalable platforms preparedness Improved data integrity Implemented structural Consolidated financial and Supported selected growth initiatives to reinforce savings regulatory reporting processes Optimized front-to-back Strengthened regulatory processes compliance
(1) Communicated targets as of Investor Day 2012 (2) Includes EUR ~0.1bn cost savings in NCOU (3) Includes DB platform investments both within and outside OpEx; CtA: Cost-to- Achieve, (OpEx & Powerhouse CtA, excluding severance payments); CtB: IT Change-the-Bank cost Deutsche Bank Jürgen Fitschen and Anshu Jain 27 April 2015 9 However, we have also faced significant setbacks
Environment Execution
Regulatory bar raised: Cost of regulatory compliance ‒ FBO / CCAR(1) rules in the US and new controls materially higher than originally (2) ‒ TLAC foreseen ‒ Leverage ratios in Europe / US Costs of Regulation regulatory ‒ Bank levies compliance ‒ CRD4 compensation rules ‒ Bank structure reforms / German bank separation
Record low interest rates taking Execution of efficiency drive a toll on deposit gathering Costs of negatively impacted by high Macro business complexity operational and structural complexity
Costs of resolving legacy High level of optionality Costs of issues and litigation soared, Business maintained – at a cost legacy / particularly in the US model litigation
(1) Foreign Banking Organizations (FBO) / Comprehensive Capital Analysis and Review (CCAR) (2) Total Loss Absorbing Capacity (TLAC) Deutsche Bank Jürgen Fitschen and Anshu Jain 27 April 2015 10 The efficiency drive has been largely offset by material cost increases
Adjusted Cost Base development(1) In EUR bn ■ Business growth ~0.5 ■ Mandatory 25.1 wage increases ~0.3 ■ Remaining ~0.2
(0.3) 23.8 (3.3) ~1.0
~1.6 ~(0.3)
~EUR 0.7bn run-rate impact of portfolio actions in 2015
2012 OpEx OpEx savings Portfolio Regulatory & Other cost FX 2014
baseline(2) actions(3) control costs effects
Note: Numbers may not add up due to rounding (1) Excludes Cost-to-Achieve, litigation, policyholder benefits and claims, other severances and smaller specific one-offs and impairments (2) 1H 2012 x 2 as communicated at Investor Day 2012 (3) Mainly divestment of Cosmopolitan of Las Vegas, Tilney, Deutsche Card Services and BHF Deutsche Bank Jürgen Fitschen and Anshu Jain 27 April 2015 11 Agenda
1 Taking stock
2 Strategy 2020
3 Delivering value
Deutsche Bank Jürgen Fitschen and Anshu Jain 27 April 2015 12 A rigorous strategy review process focused on delivering value
Macro assumptions Dec 2014 Environment Regulatory assumptions analysis Competitive landscape Client / product trends
Jan 2015 Competitive Sustainable competitive advantages position Evolving challenges Client segments Emphasis / Feb 2015 Product areas de-emphasis Regions Range of models developed Mar 2015 Strategic Detailed strategic and financial assessment models Downside assessment Model selection Apr 2015 Today Announcement: Strategy 2020
Up to Detailed operating model and governance Further detailing 90 days implications
Deutsche Bank Jürgen Fitschen and Anshu Jain 27 April 2015 13 We analyzed our operating environment… Positive outlook Negative outlook Key themes Outlook 2015 to 2020
US and Asia: recovery / sustainable growth Macro Europe: historically low interest rates persist Rising geopolitical tensions create uncertainties
Improving global outlook anchored to US and EM growth
Recovering Primary markets benefit from buoyant valuations
markets Return of volatility supports tentative recovery in fixed
income and currency markets
Improving Global universal leaders consolidate further competitive Business model choices: a transatlantic divide dynamics
Requirements for capital, leverage, liquidity and funding
Tighter continue to increase
regulation Additional challenges arise from resolution, TLAC, bank levies, RWA harmonization and continued subsidiarization
Deutsche Bank Jürgen Fitschen and Anshu Jain 27 April 2015 14 …especially trends that affect our clients’ needs
Our clients are getting… …leading to…
Population aged 60+, 2010 vs. 2050 Wealthier and Increasing demand for sophisticated wealth more senior transfer and protection +1.1bn
# of UHNWI in top 25 cities, 2013 Increasing concentration of wealth in emerging vs. 2023 Urban markets’ megacities +128%
# of large corps in EM, 2010 vs. 2025 Emerging Rising importance of large, emerging market markets corporates +322% centered
# transactions in US digital channels, Technologically Growing focus on convenience, price transparency, 2014 vs. 2020 savvy product access and data-driven models +34%
Global credit stock, 2010 vs. 2020 Capital markets Growing demand / supply in capital market deepening funding and securitization in Europe and EM +84%
Strong sustained client demand for global, multi-product banking partnerships
Source: United Nations, BCG, McKinsey, Knight Frank, PWC Deutsche Bank Jürgen Fitschen and Anshu Jain 27 April 2015 15 Our strategic levers remain critical, and we add a sixth
Emphasis for future
Expanding our focus on CET1 with a Capital commitment on leverage, RWA harmonization and liquidity
Reshaping our investment banking and retail Competencies businesses and investing in the future
Focusing on those that value a mutually Clients beneficial partnership with their banks
Continuing the journey of culture Culture transformation
Costs Pulling all levers to deliver on costs
Further investing in robust controls and Control resilience
Deutsche Bank Jürgen Fitschen and Anshu Jain 27 April 2015 16 We have taken six key decisions
1 Reposition CB&S
2 Reshape retail
3 Digitalize DB
4 Grow GTB and Deutsche AWM
5 Rationalize our footprint
6 Transform our operating model
Deutsche Bank Jürgen Fitschen and Anshu Jain 27 April 2015 17 1 Reposition CB&S: Delivering a sustainable, resilient and
well-controlled investment bank Emphasis H / M / L= high / medium / low De-emphasis CRD4 leverage consumption 2012- Aspiration CRD4 2014 2020 usage Top 3 global Debt S&T business H
Invest Top 5 global Corporate Finance house L Top 5 Equities S&T franchise M Optimize country presence M Refocus Emphasize client solutions versus flow M Multi- vs. single-product relationships M Top 5 global commodities business M Leading provider uncleared CDS H Adjust perimeter Leading global repo franchise H Long dated uncleared derivatives H
Deutsche Bank Jürgen Fitschen and Anshu Jain 27 April 2015 18 1 Reposition CB&S: Trimming while investing
Optimizing our client franchise Grow Size of bubble relates to CRD4 2014 Aspiration 2020 Corporate Finance leverage exposure Cash Equities
Equity Derivatives #1-2 EM Debt FX Credit Solutions Optimize Rates and GLM
Rates and Prime Finance (3) GLM(1) EM Debt Flow Credit
#3-5 Maintain FX Commodities(5) Prime Finance Equity Credit Solutions CB&S revenue rank revenue CB&S Derivatives Invest in Reduce Corporate Finance Single name Repo and CDS(2) #6-9 Cash Long-dated uncl. derivatives
Equities Exit (2013-2014) Flow Credit Commodities
(2) Low RoA(4) High Single Name CDS Note: Rates & GLM includes RMBS, Credit Solutions includes Distressed Product Group (1) Reduction mainly in long-dated uncleared derivatives and repo (2) Excluding single name CDS in Asia, CEEMEA and LatAm (3) Based on Coalition index (DB internal structure) (4) Revenue return on CRD4 exposure (5) as at FY2013 Deutsche Bank Jürgen Fitschen and Anshu Jain 27 April 2015 19 1 Reposition CB&S: Shrinking and re-deploying balance sheet CRD4 leverage exposure, in EUR bn
Expected impact of Targeted leverage exposure exposure reduction reduction: gross ~EUR 200bn; net ~EUR 130-150bn >900
~EUR 0.8bn deleveraging exit costs
~EUR 0.6bn negative (80-90) run-rate revenue impact… 50-70 (50-60) …more than offset by: (40-50) ‒ Revenues from re- ~700 deployment; and (30-40) ‒ Market growth
1Q Disposal of Reduced Reduced Derivati FY18 Redeploy FY18 2015 low-yielding product client ves roll- target ment and target assets perimeter perimeter off gross growth(1) net
(1) FX outlook assumed constant vs. April 2015 Deutsche Bank Jürgen Fitschen and Anshu Jain 27 April 2015 20 2 Reshape retail: Substantial investments in Postbank since 2010 Postbank in 2010 Substantial investments Postbank today(1)
Disposed / wound down Balance sheet non-core assets (total assets, 215 155 in EUR bn) EUR 42.3bn: ‒ EUR 3.7bn structured credit portfolio Non-customer assets 103 ‒ EUR 13.1bn commercial (in EUR bn) real estate portfolio 57
‒ EUR 25.5bn Shareholder deleveraging financial equity markets business (average, in EUR bn) 5.6 6.6 Invested in platform and efficiency EUR 1.2bn: Return on assets (IBIT / total assets, ‒ Service quality, sales in bps 15 and process efficiency: 29 ~EUR 0.5bn
‒ IT platform upgrades: Leverage ratio ~EUR 0.7bn (in %) 2.5 3.1
(1) FY2014 Source: Postbank Annual Report 2010 / 2014
Deutsche Bank Jürgen Fitschen and Anshu Jain 27 April 2015 21 2 Reshape retail: A number of factors has led us to reconsider Postbank’s strategic fit with DB
Key factors Implications
Postbank’s mortgage and home loans products drive high returns at high balance DB's proactive focus on ≥5% medium-term leverage ratio would Leverage sheet usage negatively impact Postbank’s product Resulting 3.1% leverage ratio especially portfolio and growth prospects onerous given DB’s G-SIB status
Cross-selling between DB and Postbank : ‒ Made more costly and onerous by Substantially less scope for revenue Cross-sell evolving regulation synergies between Postbank and DB ‒ Limited by differing client needs
Postbank’s contribution to group-wide Group-wide limits constrain Funding funding and liquidity limited by regulatory Postbank’s ability to efficiently deploy constraints its funding overhang
DB’s ability to fully realize value of Postbank’s acquisition eroded in the face of changed regulatory environment and our strategy
Deutsche Bank Jürgen Fitschen and Anshu Jain 27 April 2015 22 2 Reshape retail: Postbank deconsolidation process and timeline
Intention to launch squeeze-out Next steps
Cease integration efforts especially in IT and middle/back-office operations To prepare the execution of our strategy, Imme- Revert to stand-alone business and we acquired additional 2.7% of Postbank diately operating models shares Yet maintain the efficiency and service Our ownership moved from 94.1% to quality improvements 96.8% Intention to launch squeeze-out at a Postbank shareholders’ meeting by August 2015 Pursue squeeze-out of Postbank minorities 2Q-4Q at Postbank shareholders’ meeting Completion of squeeze-out expected at 2015 the latest by year-end 2015 Prepare subsequent re-IPO process Squeeze-out provides us with flexibility with regard to domination agreement
By end Launch re-IPO 2016
Deutsche Bank Jürgen Fitschen and Anshu Jain 27 April 2015 23 2 Reshape retail: Transform our private and commercial client franchise
“Leading digitally-enabled advisory Our value proposition: “Best-in-class, bank for private and commercial clients seamlessly accessible, investment-centric with strong home base in Europe” financial solutions for demanding clients”
Advisory- Relationship banking for advisory- Client Digital led client focused private, business and MidCap Intelligence transformation franchise clients in Germany and Europe
Omni- channel Industry-leading digital channels and more efficient physical network Private and distribution Personal Commercial Digital advice Clients access Superior product Focus on investment, mortgage and business / MidCap solutions offering
Platform Processes State-of- Lean IT / operations platform through the-art standardization and reduced platform complexity
Deutsche Bank Jürgen Fitschen and Anshu Jain 27 April 2015 24 2 Reshape retail: A leading advisory bank
Substantial actions planned… …to deliver our new PBC
Sharpen distribution model 2016-2020 ‒ Up to 200 branches closed by 2017 Leading digitally-enabled advisory bank for >13m ‒ Strengthen omni-channel clients with strong home base in Europe capabilities ‒ No. 1 advisory bank in Germany(1) for >8m private, business and MidCap clients Continue to invest in efficiency and service quality ‒ Strongholds in five other attractive European markets with in total ~5m clients
Invest in digital capabilities Uplift of asset productivity through emphasis on ‒ ~EUR 100m invested so far investment and insurance products ‒ Targeting EUR 400-500m further Fully digitized omni-channel distribution model investments by 2020 with ~500 specialized advisory centers in Germany and premium service Optimize infrastructure and front-to- Competitive cost efficiency back cost reduction
(1) Based on revenues Source: Company data Deutsche Bank Jürgen Fitschen and Anshu Jain 27 April 2015 25 3 Digitalize DB: Becoming a more Digital Bank
Banking on the verge of major digital disruption Investing in disruptive technologies in financial services – e.g.
Deliver Banking via Apple Watch Customer Experience Fingerprint login Digital Media Tipping point
Capture Autobahn App Market New FinanzPlaner 2.0 Revenues Consumer maxblue 2.0 Laggards Main- stream Enable DB Innovation Labs Our clients Platform Nucleus
Banking New banking propositions to: industry Target ‒ Offer new products; e.g. in payments, Traditional New messaging, client data Media Clients ‒ Reach new client segments Early adopters ‒ Expand to new geographies Targeting up to EUR 1bn of incremental New trends group-wide investment through 2020(1) (1) Of which EUR 400-500m relate to retail ; see page 25 Source: McKinsey Deutsche Bank Jürgen Fitschen and Anshu Jain 27 April 2015 26 4 Grow GTB: Continue to invest in scale
Trajectory to build on Why we want to grow GTB Planned investments
GTB performance(1) IBIT Market leader in In EUR bn Revenues ■ EUR 50bn+ incremental leverage ‘annuity- like’ exposure supporting corporates business to corporate 0.9 +36% 1.2 and financial institutions and institutional clients 4.1 3.4 +23%
High Return-on- ■ EUR >1bn investment in our core Equity business product engines
2010 2014
Global peer revenues(2) Indexed World-class cost Ger- Europe efficiency many +12% 112 100
Corporate ‘deposit engine’ and net US Asia liquidity provider 2010 2014
(1) 2014 does not reflect C&A clear-out adjustments as per 1Q2015 disclosure (2) Peer set consisting of BoA, JPM, Citi, BNY, HSBC, State Street and Standard Chartered Deutsche Bank Jürgen Fitschen and Anshu Jain 27 April 2015 27 4 Grow Deutsche AWM: Building on a strong trajectory
Focused transformation...... with strong delivery momentum Select examples Net New Assets Rationalization In EUR bn AuM, in EUR trn Divested EUR 30bn non-core AuM 0.9 1.0 1.2 De-listed and closed small funds 40 17 Integration Created global AM client coverage Integrated investment platforms (25)
Simplification Reduced 11 booking centers(1) 2012 2014 1Q15 Rationalized legal entities IBIT(3) (2) ~15% headcount reduction In EUR bn Revenues(4) Transformation 4.1 4.4 1.2 Decommissioned 126 IT applications Invested in platform efficiency ~7x 1.0
Growth Track record of consistent inflows 0.2 0.3 Launched innovative products Expanded U/HNWI coverage 2012 2014 1Q15
(1)Including AM manufacturing centers (2) Net, full-time equivalents 1Q2015 vs. 2Q2012 (3) 2014 does not reflect C&A clear-out adjustments as per 1Q2015 disclosure (4) Excluding Abbey Life gross-up Deutsche Bank Jürgen Fitschen and Anshu Jain 27 April 2015 28 4 Grow Deutsche AWM: Invest to capture future growth
Significant global growth opportunities for the industry Planned investments to capture growth
AuM, in USD trn Balance Sheet: U/HNWI growth Prudently grow lending balance sheet 5-6% p.a. 5-10% p.a. to support client needs 220 Wealth Client coverage: Management 152 Emerging market growth Increase U/HNWI relationship managers in key markets by 15% in the next two years Increase product specialists 2013 2020E Ageing population Investment performance and solutions: AuM, in USD trn Develop innovative Retirement and Strategic Beta offerings Further enhance Alternatives and Multi- 5-6% p.a. Alternatives Asset investment capabilities Asset 102 and Passive Management 69 Operating model: Continue to streamline footprint to further improve CIR Custom solutions Invest in technology and digital 2013 2020E capabilities to better serve clients
Sources: Credit Suisse Global Wealth Report 2014; PwC Asset Management 2020: A brave new world 2014; BCG Global WM Industry Survey 2014 Deutsche Bank Jürgen Fitschen and Anshu Jain 27 April 2015 29 5 Rationalize our footprint: Centers of economic power are shifting
Towards emerging markets Towards mega-cities
# of large caps in EM(1) GDP in largest 600 cities
>3x >2x
2010 >2020 2007 >2020
AuM in EM # of UHNWI(2) in top 25 cities
>2x +30%
2012 >2020 2013 >2020
(1) Companies with >USD 1bn in annual revenues (2) Individual with net worth of >USD 30m Source: McKinsey, Knight Frank, PWC Deutsche Bank Jürgen Fitschen and Anshu Jain 27 April 2015 30 5 Rationalize our footprint: Exit or reduce our presence while investing in high growth hubs
Key drivers of our footprint optimization decisions - De-emphasize + Emphasize – examples # of countries/presences Reducing complexity China
Market size and growth (7)-(10) CAGR 2014- CAGR 2014- Growth 2011- 2019, in % 2020, in % 2014, in % 70 ~57 Importance for Repre- international large caps / ~13 (2) sentative 15 60-63 ~7 MNCs offices
Regulatory and political Real Wholesale DB GDP revenue pool revenues environment / outlook Operating India DB market position / locations ability to compete 55 CAGR 2014- CAGR 2014- Growth 2011- 2019, in % 2020, in % 2014, in % Size of current local presence ~14 ~8 ~10
Cost of operations Today(1) Aspiration Real Wholesale DB increasing GDP revenue pool revenues
(1) One country exited compared to YE 2014 (2) Including remote presences Source: McKinsey, DB Research Deutsche Bank Jürgen Fitschen and Anshu Jain 27 April 2015 31 6 Transform our operating model: Redesigning operating and governance models
Strategy 2020 Today Strategy 2015+ Jun 2012
Raise level of efficiency: redesign front-to-back processes and operations Comprehensive assessment of status quo
Reduce complexity: right-size in line with Operational Excellence launched reduction of business perimeter
Initiatives to strengthen compliance, Improve controls: continue to invest and modify remediate regulatory issues and improve governance and organizational model platform stability
Significant investments, hiring key people, Enhance resolvability: simplify legal entity establishing organizational procedures set-up
Details of operating model and governance enhancement initiatives to be announced in up to 90 days
Deutsche Bank Jürgen Fitschen and Anshu Jain 27 April 2015 32 6 Transform our operating model: Top-down savings targets Target In EUR bn Gross cost savings p.a. Cum. CtA Details on next page Narrow perimeter (e.g., de-emphasizing of Additional product/client segments, locations) ~3.5 ~3.7 gross savings Increase efficiency (e.g., process streamlining, IT/Ops platform optimization)
Remaining Modernize DB's non-retail IT infrastructure/ application footprint jointly with a strategic partner 2015 OpEx 1.2(1) 1.0(2) savings Complete roll-out of our strategic global investment (Examples) management platform for Deutsche AWM
Additional cost reductions p.a. Cum. CtA
Deconsolidate Postbank Disposals Completed NCOU exits 3.3 0.3 Other portfolio measures
Note: Gross cost savings are countered by increasing cost from inflation, FX changes, cost of growth, cost of regulatory compliance and other cost increases (1) Reflects overall FY2015 OpEx savings already included in separately disclosed OpEx numbers; no adjustments from incremental savings (2) Already included in separately disclosed OpEx numbers Deutsche Bank Jürgen Fitschen and Anshu Jain 27 April 2015 33 6 Transform our operating model: Contributing ~EUR 3.5bn additional organic gross savings In EUR bn Target Gross cost savings p.a. Cum. CtA Structural efficiency levers
Rightsizing of FTE and platform in alignment with: Narrow – Exit of structurally unprofitable businesses ~1.3 ~1.4 perimeter – Country exits / non-presence – Branch closures
Unlock additional efficiency potential through – Automation of manual processes Increase – IT/Ops footprint optimization and insourcing ~2.2 ~2.3 efficiency – Further non-compensation costs (e.g., procurement) optimization – Infrastructure functions re-alignment
Total savings ~3.5 ~3.7 Targeting ~15% reduction of adjusted costs by 2020
Note: Gross cost savings are countered by increasing cost from inflation, FX changes, cost of growth, cost of regulatory compliance and other cost increase Deutsche Bank Jürgen Fitschen and Anshu Jain 27 April 2015 34 Summary: Six decisions to reshape the Bank
Aspirations
Deliver sustainable client-driven franchise by: Reposition Leverage reduction: 1 ‒ Reducing transactional business and focus product suite gross ~EUR 200bn, CB&S ‒ Invest in client solutions, advisory and equities net ~EUR 130-150bn
Net leverage reduction of Re-focus through deconsolidation of Postbank Reshape ~EUR 140bn 2 Transform DB into a leading digitally-enabled advisory bank for Closure of up to 200 retail private and commercial clients branches
Group-wide net Digitalize Invest with focus on a) customer experience, b) revenue 3 investment of up to opportunities, c) enable our platform, and d) new clients DB EUR 1bn by 2020
Grow Increase in leverage Invest in scaling-up GTB exposure by 30-40% 4 GTB and Aggressively invest in future growth of Deutsche AWM P&L investment of Deutsche AWM >EUR 1.5bn
Exit / reduction of Rationalize Rationalize our geographic footprint 5 presence in 7-10 our footprint Invest in high growth hubs (e.g., China, India) countries
Transform Changes to governance Redesign our operating and governance model to achieve and structure 6 our operating higher efficiency, reduced complexity, even stronger controls and easier resolvability Additional ~EUR 3.5bn model gross savings Note: Gross cost savings are countered by increasing cost from inflation, FX changes, cost of growth, cost of regulatory compliance and other cost increases Deutsche Bank Jürgen Fitschen and Anshu Jain 27 April 2015 35 Agenda
1 Taking stock
2 Strategy 2020
3 Delivering value
Deutsche Bank Jürgen Fitschen and Anshu Jain 27 April 2015 36 Result: A reshaped business model Targeted indicative resource utilization (CRD4 exposure) by 2020
Afflu- Change 2020 vs. 2014 Mass ent / Corp- retail(1) HNWI orates Institutions / other
2014 Re-affirming our Clients
commitment to
clients: at the center
2020 of what we do Advi- Cash Asset Serving client Lending(1) sory mgmt mgmt Sales & trading segments which offer mutually 2014 beneficial
partnerships in Products
services in which we
excel 2020
Adapting our product Germany(1) Europe (ex. GY) Americas Asia and resource deployment 2014 accordingly Regions
2020
(1) 2014 including all of Postbank; 2020 excluding Postbank Deutsche Bank Jürgen Fitschen and Anshu Jain 27 April 2015 37 Germany: Remaining among the market leaders across all our businesses
Investment Banking – Corporate Finance Retail Banking Fees, FY14, in EUR m Net revenues, FY13/FY14, in EUR bn 2020 370 Public Peer 29 sector Peer ~150 banks Peer 21 Peer ~150 4 2020 Peer ~120 Private 4 Peer ~110 sector Peer 3 banks Peer ~100 Peer 2 Peer ~90 Peer 2
Asset Management(1) Wealth Management Assets under Management, FY14, in EUR bn Assets under Management, FY14, in EUR bn 2020 2020 (2) 211 125 Peer ~113 Peer ~55 Peer ~112 Peer ~50 Peer ~111 Peer ~50 Peer ~39 Peer ~40 Peer ~25 Peer ~40 Peer ~24 Peer ~35
(1) Public funds including exchange traded products (2) Including Advisory Banking for wealthy private clients in PBC Source: Company data, Dealogic, BVI Deutsche Bank Jürgen Fitschen and Anshu Jain 27 April 2015 38 Medium term ambitions
Our targets
Leverage ≥5% RoTE(1) >10% ratio
Organic gross ~EUR 3.5bn CET1 savings ~11% ratio CIR ~65%
Our aspiration
Payout ratio(2) Aspiration to deliver 50%+ dividend payout ratio
Note: Gross cost savings are countered by increasing cost from inflation, FX changes, cost of growth, cost of regulatory compliance and other cost increases (1) RoTE: Post-tax Return on Tangible Equity is calculated as net income (loss) attributable to shareholders as a percentage of average tangible shareholders' equity. Net income (loss) attributable to shareholders is defined as Net income (loss) excluding post-tax income (loss) attributable to non-controlling interests. Tangible shareholders' equity is the shareholders’ equity per balance sheet excluding goodwill and other intangible assets (2) Through dividends and/or share buybacks Deutsche Bank Jürgen Fitschen and Anshu Jain 27 April 2015 39 What comes next
Today Strategy 2020 announcement
Refine key levers Operating Design detailed transformation roadmap model review Refine governance and operating model
Footprint Finalize outcomes of global country review decisions Engage stakeholders and initiate implementation
Breakdown strategic roadmap into detailed Divisional and divisional and functional plans functional strategies Sequence change management
In up to 90 days Follow-up announcement
Deutsche Bank Jürgen Fitschen and Anshu Jain 27 April 2015 40 Strategy 2020: Focusing Deutsche Bank to deliver value
A leading global bank based in Germany
What’s constant What changes
Client-centricity: placing our clients Refocusing on clients who offer at the centre of what we do mutually beneficial partnerships
Moving toward a more focused Keeping a global footprint geographic reach
Maintaining a universal banking Tightening our product perimeter – product offering not all things to all people
Proactive stance on future regulatory direction and robust controls
Deutsche Bank Jürgen Fitschen and Anshu Jain 27 April 2015 41 Cautionary statements
This presentation contains forward-looking statements. Forward-looking statements are statements that are not historical facts; they include statements about our beliefs and expectations and the assumptions underlying them. These statements are based on plans, estimates and projections as they are currently available to the management of Deutsche Bank. Forward-looking statements therefore speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events.
By their very nature, forward-looking statements involve risks and uncertainties. A number of important factors could therefore cause actual results to differ materially from those contained in any forward-looking statement. Such factors include the conditions in the financial markets in Germany, in Europe, in the United States and elsewhere from which we derive a substantial portion of our revenues and in which we hold a substantial portion of our assets, the development of asset prices and market volatility, potential defaults of borrowers or trading counterparties, the implementation of our strategic initiatives, the reliability of our risk management policies, procedures and methods, and other risks referenced in our filings with the U.S. Securities and Exchange Commission. Such factors are described in detail in our SEC Form 20-F of 20 March 2015 under the heading “Risk Factors.” Copies of this document are readily available upon request or can be downloaded from www.db.com/ir.
This presentation may contain non-IFRS financial measures. For a reconciliation to directly comparable figures reported under IFRS, to the extent such reconciliation is not provided in this presentation, refer to the 1Q2015 Financial Data Supplement, which is accompanying this presentation and available at www.db.com/ir.
Deutsche Bank Jürgen Fitschen and Anshu Jain 27 April 2015 42