Report for theYear 197 6 Aklicngesellscl~aft Contents

Agenda for the Ordinary General Meeting ...... 5 Supervisory Board ...... 7 Advisory Board ...... 8 Board of Managing Directors ...... 9 Managers ...... 10

Deutsche Bank at a glance ...... 11

Report of the Board of Managing Directors EconomicSurvey ...... 13 Our Bank's Business ...... 29 Our Staff ...... 43 Notes on the Statement of Accounts for the Year ...... 51 Growth of Capital and Reserves ...... 65

Report of the Supervisory Board ...... 67

Statement of Accounts for 1976 Balance Sheet ...... 70 Profit and Loss Account ...... 72 The Growth of the Balance Sheet from January 1. 1952 to December 31. 1976 ...... 74

Report of the Group for 1976 Report of the Group ...... 79 Consolidated Balance Sheet ...... 94 Consolidated Profit and Loss Account ...... 98

Appendices List of Deutsche Bank's invcstments in subsidiaries and associated companies ...... 103 Security issuing. other syndicate transactions and listings on the stock exchange ...... 107 Regional Advisory Councils ...... 113 List of branches ...... 133 Holdings in German banks ...... 140 Our bases throughout the world ...... 141 Agenda

for the

Ordinary General Meeting

to be held at 10 a.m. on Wednesday, May 11, 1977 in the Beethovensaal of the Liederhalle, Berliner Platz 1, .

1. Presentation of the established Statement of Accounts and the Reports of the Board of Managing Directors and Supervisory Board for the 1976 financial year. Presentation of the Consolidated Statement of Accounts and the Rcport of the Group for the 1976 financial year.

2. Resolution on thc appropriation of profits.

3. Ratification of the acts of management of the Board of Managing Directors for the 1976 financial year.

4. Ratification of the acts of rnanagement of the Supervisory Board for the 1976 financial year.

5. Election of the auditor for the 1977 financial year

6. Bond issue with subscription rights and conditional share capital

1. Authorised share capital. Change at the top Board of Managing Directors of Deut- sche Batik in 1949 upon cornpletion of sche Bank for 25 years and has worked his legal studies. In spring 1965 he was 1976 saw great changes at Deutsche for our bank for over 40 years. In 1967 appointed Deputy Mernber, and in 1967 Bank. Following the Ordinary General Ulrich was appointed - together with full Mernber of the Board of Managing Meeting on May 18 there was a change Dr. Karl Klasen - Spokesman of the Dircctors. In 1975 the Federal Associa- at the top, both in the Supervisory Board of Managing Directors. Frorn tion of Gerrnan Banks elected hin] as its Board and in the Board of Managing 1970 he had been the sole Spokesman President, as successor to Alwin Directors. Hermann J. Abc, Chairman of of the bank. Münchrneyer. the Supervisory Board since 1967, and Along with Franz Heinrich Ulrich, Dr. After studying economics, Dr. Wilfried Franz Heinrich Ulrich, Spokesman of Hans Feith also retired. The Ordinary Guth worked with what was then the the Board of Managing Directors since General Meeting elected hirn to the Su- Bank deutscher Länder and its succes- 1967, retired from their positions. pervisor~Board. Dr. Fcith had been ac- sor the . Via the The Supervisory Board and the Board tive with Deutsche Bank since 1939 and International Monetary Fund and the of Managing Directors of Deutsche was norninated as a Mernber of the Reconstruction Loan Corporation he Bank elected Herrnann J. Abs as Hono- Board of Managing Directors in 1959. entered the Board of Managing Direc- rary President of the bank. This nomi- He was responsible rnainly for stock tors of Deutsche Bank at the beginning nation is in worthy recognition of his rnarket and securities business. of 1968, becoming responsible for for- forty years of service for Deutsche Bank The new Spokesmen unanirnously eign business, especially international as Member and then Spokesmati of the elected by the Board of Managing issuing business. Board of Managing Directors and Chair- Directors on April 5 are Dr. F. Wilhelm Dr. Guth belongs to a number of inter- man of the Supervisory Board. Christians and Dr. Wilfried Guth. national bodies involved primarily in Franz Heinrich Ulrich was elected to Deutsche Bank had once again opted development questions and econornic succeed hirn as Chairrnari of the Super- for a "doiible" solution. cooperation. visory Board. He was a Mernber of the Dr. F. Wilhelm Christians entered Deut- Honorary President

Hermatin J. Abs, (Main) (from May 18, 1976)

Supervisory Board

Hermann J. Abs, Frankfurt (Main), Cha~rrnan Alfred Kistenrnacher, * (up to May 18, 1976) (up to May 18,1976) Deutsche Bank AG

Franz Heinrich Ulrich, Düsseldorf, Chairman Werner Leo, Dusseldorf* (up to May 18, 1976) (from May 18, 1976) Dcutsche Bank AG

Dipl.-lng. Dr.-lng. E. h. Helniut Meysenburg, Esseri Hans L. Merkle, Stuttgart, Deputy C17air1nan Chairmari of tlie Managenient of Robcrt Bosch GrnliH Josef Pfaff, Cologne* (froni May 18, 1976) Deutsctie Bank AG

Heinz Osterwind, Frankfurt (Mairi), Deputy Chairman Dr. h. C. Herbert Quaridt, Bad Homburg V d Höhe Industrialist, Chairman of the Board of Managing Dircctors of VARTA AG Ottmar Baumgärtner, Frankfurt (Main)* (up to May 18, 1976) Dcutsche Bank AG Konrad Reeb, Munich* (frorn May 18, 1976) Deutsche Bank AG

Professor Dr. J. R. M. Vati der) Brink, Arnsterdam Marion Schardt, * (from May 18, 1976) Chairman of the Supervisory Board of AKZO N. V. Deutsche Bati k AG

Bernhard Drewitz, * (up to May 18, 1976) Käthe Schmitz-Karhoff, Cologne* (up to May 18, 1976) Bcrliiier Disconto Bank AG Deutsche Bank AG

Dr. Peter von , Munich Manfred Emcke, Hambiirg (up to May 18, 1976) Chairinan of the Supervisory Board of Sieriiens AG Busincssiiiaii

Gisela Toffling, Hamburg* (from May 18, 1976) Dr. Helmut Fabricius, Weinheim (Bergstrasse) Dcutsclie Batik AG Chairman of the Partners' Comniittee of Freudentierg 8, Co Dipl.-Kfm. Gunter Vogelsang, Düsseldorf Dr. Hans Feith, Frankfurt (Maiti) (frorn May 18, 1976) Lothar Wacker, Cologne* (from May 18, 1976) Deutsche Bank AG Dr. Friedrich Karl Flick, Düsseldorf-Oberkassel Partner and Manaying Director of Friedrich Flick KG Dr. Siegfried Weber, Hamburg * (up to May 18, 1976)

Jutta Freundt, Berliri* (from May 18, 1976) Hannelore Winter, Düsseldorf Berliner Disconto Batik AG Hoiisewife

Gerhard Zietsch, MannheimA Jörg A. Henle, Deutsche Bank AG Partiicr arid Managing Director of Klöckrier & Co.

Dr.-lng. E. h. Heinz P. Kemper, Düsseldorf Horiorary President of VEBA AG ' electcd ß y lhe staff Advisory Board

Professor Dr. Kurt Hansen, Leverkusen, Paul Hofmeister, Hamburg (up to May 18, 1976) Chairman lup to Md y 18, 1976) Chairman of the Supervisory Board Chairman of the Supervisory Board of Bayer AG of Norddeutsche Affinerie

Dr. Ing. Dipl.-lng. Günther Klätte, Essen Otto Wolff von Arnerongen, Cologne, (frorn May 18, 1976) Chairman from May 18, 1976 Member of the Board of Managing Directors Chairman of thr: Board of Managing Directors of Rheiriiscli-Westfälisches Elektrizitätswerk AG of Otto Wolff AG Reinhard Mohn, Gütersloh (frorn May 18, 1976) Chairman of the Board of Managing Directors Dr. Wolfgang Schieren, Munich, of Bertelsmarin AG Deputy Chairman from May 18, 1976 Chairman of ttie Board of Managing Directors of Allianz Versicherungs-AG Dr. Heribald Närger, Munich Member of the Board of Managing Directors of Sieriiens AG Wilfrid Baurngartner, Paris Horiorary President of Rh6ne-Pouletic S.A Dr. Egon Overbeck, Düsseldorf Chairman of the Board of Managing Directors of Manriesmann AG Rudolf von Bennigsen-Foerder, Düsseldorf Chairman of the Board of Managing Directors of VEBA AG Professor Dr. rer. nat. Matthias Seefelder, (Rhein) (frorn May 18, 1976) Chairman of the Board of Managing Directors Dr. Horst Brandt, Frankfurt (Main) of BASF AG Deputy Chairman of the Board of Managing Directors of Allgemeine Elektricitäts-Gesellschaft AEG-TELEFUNKEN Professor Dr. phil. nat., Dr.-lng. E. h., Dr. rer. nat. h. C. Bernhard Timrn, Ludwigshafen (Rhein) (up to May 18, 1976) Professor Dr. Dipl.-Chern. Herbert Grünewald, Chairman of the Supervisory Board of BASF AG Leverkusen (frorn May 18,1976) Chairmari of the Board of Managing Directors of BAYER AG Casimir Prinz Wittgenstein, Frankfurt (Main) Deputy Chairman of thc Board of Managing Directors of Metallgesellschaft AG

Dr. Ing. Dr. rer. nat. h. C. Konrad Henkel, Düsseldorf (from May 18, 1976) Professor Dr. Joachim Zahn, Stuttgart-Untertürkheim Partner and Chairman of the Management Chairman of the Board of Managitig Directors of Henkel KGaA of Daimler-Benz AG Board of Managing Directors

Horst Burgard

F. Wilhelm Christians

Robert Ehret

Hans Feith (up to May 18, 1976)

Wilfried Guth

Alfred Herrhausen

Eckart van Hooven

Andreas Kleffel

Hans Leibkutcch

Klaus Mertin

Hans-Otto Thierbach

Franz Heinrich Ulri~h(up to May 18, 1976)

Hilmar Kopper, Deputy (from Jan. 25, 1977)

Herbert Zapp, Deputy (from Jan. 25, 1977) Assistant Managers Managers General of the of the Managers Central Office Regional Head Branches

Werner Blessing Georg Behrendt Hamburg Dr. Siegfried Gropper Dr. Helniut Bendiy Ernst Crerner Christoph Könneker Dr. Siegfried Jensen Erich Bindert Dr. Lothar Gruss Hans-Kurt Scherer Christoph Könneker Michael von Brentano Claus Hinz Dr. Hans-Dieter Bartels Heinrich Kunz Dr. Rolf-Ernst Breuer Oskar Klose Dr. Harald P. Burchard Ernst H. Plesser Ulrich Cutik Ulrich Stuckc Walter Friesecke Hans-Kurt Scherer Robert Dörner Lothar Zelz Heinrich Garbe Dr. Winfried Werner, Helmut Eckermann Günther Hoops Chief Syndic Dr. Klaus Gaertner Johann Pfeiffer Dr. Karl Friedrich Woeste Dr. Peter Grasnick Rudolf Habicht Dr. Roland Bellstedt Dr. Walter Hook Peter Hartmann Dr. Ulrich Hoppe Wolfgang Büsselberg Heinz Jürgens Dr. Heyko Linnemann Cologne Gerhard Junker Wcrner Rissmann Dr. Walter Barkhausen Eberhard Knorr Dr. Dieter Wefers Dr. Franz von Bitter Gerhard Koenig Dr. Karl-Heinz Böhringer Paul Körtgen Wilhelm Clemens Mainz Ernst Georg Kummer Karl-Heinz Fink Dr. Jan Hiemsch Richard Lehmann Dr. Wolfgang-Dieter Lange Dr. Hans Pütz Dr. Walter Lippens Dr. Theo Loevenich Hermann Marx Düsseldorf Dr. Hans Otto Mehl Wolfgang Möller Karlheinz Albrecht Günter Meissner Hans Müller-Grundschok Dr. Fritz Lamb Karl Miesel Gunter Sengpiel Karlhcinz Reiter Dr. Hans-Joachim Panten Friedrich Stähler Heinz G. Rothenbücher Karlheinz Pfeffer Dr. Rüdiger Weber Werner Römer Hans Rosentalski Munich Wilhelm Schlaus, Essen Dr. Siegfried Gropper Syndic Dr. Herbert F. Jacobs Dr. Bernt W. Rohrer Dr. Hans Walter Schloter Dr. Theodor E. Pietzcker Dr. Hans Schuck Dr. Ernst Schneider, Günter M. Schwärzell Dr. Hans Sedlmayr Syndic Karl Ernst Thiemann Dr. Karl Schneiders Dr. Wolfgang Tillmann Stuttgart Dr. Werner Schwilling Hellmut Balle Dr. Georg Siara Frankfurt Norbert Elsen Günter Sonnenburg Dr. Ulrich Klaucke Dr. Nikolaus Kunkel Dr. Ernst Taubner Gottfried Michelmann Paul Leichert Dr. Franz-Josef Trouvain Dr. Hugo Graf von Walderdorff Christian Vontz Dr. Ulrich Weiss Dr. Olaf Wegner Johann Wieland Dr. Hans Hinrich Asmus Freiburg Hans W. Stahl Dr. Günther Dietzel Dr. Gerd Weber Heinz Quester Deutsche Bank at a glance

1976 1975 Business volume ...... DM 67.8 bn. DM 57.0 bn. Balance cheet total ...... DM 67.4 bn. DM 56.8 bn. Funds from outside sources ...... DM 62.0 bn. DM 52.0 bn. Credit volume ...... DM 41.7 bn. DM 34.2 bn. Own funds ...... DM 3,100.0 m. DM 3,000.0 m.

Earnings on business volume .... 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 ...... Staff ...... Customers (excl. banks) ...... Offices ......

Group Business volume ...... DM 105.9 bn. DM 91.7 bn. Balance sheet total ...... DM 105.2 bn. DM 91.5 bn. Funds from outside sources ...... DM 97.9 bn. DM 84.8 bn. Credit volume ...... DM 73.7 bn. DM 65.2 bn. Own funds ...... DM 3,393.3 m. DM 3,192.4 m. Staff ...... 40,772 40,839 Offices ...... 1,281 1,280 Report of the Board of Managing Directors

Growth again, but still high unemployment trialized nations and frorn the roughly 12% expansion in world trade. In 1976, roughly one quarter more export In 1976, following the severe recession in the pre- orders were placed with German industry than in the vious year, the German economy again recorded preceding year. Thus, in the period under review, for- marked growth. The real increase in national product, at eign demand developed into the decisive impulse be- 5.6%, turned out higher than had been expected in au- hind economic growth. Exports rose by 16%. tumn 1975. Conversely, the cyclical upswing in the Federal Re- At the beginning of the year, a cyclical recovery Set public also helped to stimulate international trade. Ger- in, supported by strong impulses. It led to high growth man imports rose by 20% and thus more strongly than rates. In the summer, however, the upward forces slack- exports. In this way, the Federal Republic of ened off. After the holiday period too, they failed to re- contributed to the cyclical development in its partner- attain their intensity in the first phase of the upturn. countries. In total, the German foreign trade surplus in Above all, the desired transition to a self-supporting in- 1976 fell by more than 7% to DM 34.5 bn. Taking into vestrnent cycle could not be realized. On the contrary, account the other items in the balance of service doubts were voiced as to whether the upswing would transactions, the external contribution in the national persist. At the end of 1976, the German economy en- accounts contracted further, though not substantially. tered the new year with dampened expectations. In spite of the cyclical recovery, it has not been possi- ble to reduce unemployment by as much as had been Consumer climate improved hoped. The unernployment rate fell only temporarily be- low 4%; the proportion of longer-term unemployed Since autumn 1975, as the cyclical recovery rose steadily. However, it was possible to reduce short- progressed, private households had again exhibited a time working substantially in the course of the year. growing propensity to spend money and to save less Capacity utilization in industry improved. However, at than they had done during the recession. Besides this, 80% it still remained markedly lower than the optimal consumers made increasing use of the low-interest con- utilization level. Again, considerable differences ap- sumer credits available to them. Overall, therefore, con- peared here between individual branches and compa- sumer spending in 1976 grew more strongly than dis- nies. posable incorne. Thus, the consumer climate improved compared with Further progress towards price stability the previous year. Nevertheless, for some larger retail sectors, such as department Stores, the positive effects The inflation rate continued to fall in spite of the cycli- of this on turnover were only limited. The additional cal recovery. At the end of the year, there was a three in consumer demand was concentrated much more on in- front of the decimal point in the cost-of-living index, dividual sub-sectors such as rnotor vehicles, electrical compared with a six on average during the previous goods and household requisites. A substantial portion year. With an average annual-rate of increase of 4.5% in of total expenditure was also accounted for by travel. the cost of living, it was possible - particularly as a re- In 1976, private consumption again proved to be a sult of Bundesbank policy - to make further progress in major Support for economic activity. In real terms, it ac- the struggle for greater price stability. Thus, the rnone- counted for almost 60% of gross national product. tary conditions for steady growth in our economy have However, the impulses generated by it tended to sub- improved. For the first time, the possibility of a return to side in the course of the year. the low rates of price increase of the sixties no longer appears utopian. Public finances: first steps towards consolidation Expansive exports - but lower trade surpluses In 1975, the public authorities had pursued a strongly The exports of the Federal Republic received a major expansive budgetary policy and public spending had boost from the cyclical recovery in the western indus- done much to cushion the effects of the recession. In 1976, ttie public sector became increasingly dominated nies invested roughly DM 13.2 bn. in stocks. They thus by its lack of funds. The firiancial necessity of I-educiric] inade a substantial contribution to the growth in overall the extremely high deficits received greater priority than demand. cyclical policy targets. In fact, it was possible to reduce The further rise in stockbuilding in the third quarter the deficits in 1976. Higher tax revenues due to the cycl- was balanced out by the fall in the fourth quarter, so ical developmerit and ttie restriction of growth on the that, in overall terms, stockpiling carne to a halt in the expenditure side enabled the cash deficit of the central, second half of the year. regional and local authorities to be cut froni DM 66 bn. iri 1975 to roughly DM 50 bn. in 1976. The financing of these still very high deficits was car- ried out successfully, without any significant difficulties, lnvestment still without momentum on the capital markets, primarily because industry's de- mand for capital remained weak. However, due to the The hope that industrial expansion investment would extremely strong growth in public indebtedness over pick iip again and thus lead the first phase of cyclical re- the last few ycars, the debt service burden on the public covery into a second phase of secured upswing was not finances is rising steadily and the limits to borrowing fulfilled in 1976. There was some improvement in a are coming into view. The overall consolidation of pub- ncimber of important preconditions for an intensificatiori lic finances rcmains an urgent task for the coming of investment. Thus, rising capacity utilization brought years. increased productivity gains, which, in their turn, to- The social irisurance institutions also closcd the year gether with wage increases morc or less in line with with high deficits after having generated cash surpluses stability policy, allowed profits to rise again for the first consistently up to mid-1975. Restoring their financial time after ycars of contraction. As a result of their per- health has beconie the central problem of social policy. sistent restraint in investment spending, the liquidity of The progress made so far in reducing the deficits of many compariies increased also. In the first half of 1976, the central, regional and local authorities has becn pri- companies (excluding home construction) had little re- rnarily at the expense of investment spending. Real in- qiiirement for borrowed funds. Their financing deficit vestment by the piiblic sector fell not only in relation to fell from DM 11 bn. in the first half of 1974 to DM 1 bn. total expenditure but in absolute tertns as well. The ef- But the after-effects of the recessiori were still too fccts of this reduction were fclt above all by the con- strong. It had shown how quickly a company can get strciction industry; it had negative consequenccs both iiito the red, even if its turnover only stagnates. Growing for cyclical and growth policy. On the other hand, per- demand could be satisfied iri rnost cases without diffi- sonne1 cxpenditure, tied by law and wage agreements, culty from existing capacities. lnvestment was therefore proved largely inflexible. The excessive growth in per- Seen primarily as a means of rationalization, of improv- sorinel costs is thus proving more and more to be a seri- ing a company's competitiveness arid thus of securing ous structural distortion of the last few years. jobs in the longer terrn. On the other hand, sales and Taken in total, considerable cyclical stimulus came profit expectations provided irisufficient incentive, in from the public sector's financial deficits in 1976. On the most cases, for expansion investment. In 1976, about ottier hand, ttie selectivc Programmes aimed at stimu- 80% of conipanics undertook capital expenditure on ra- lating busincss activity became less and less sigriificarit. tionalization and replacement measures and only 20% on the exparisioti of industrial capacity, though, in practice, rationalization irivestment often has the effect Impulses from stockbuilding of expanding capacities. Capital expcnditure oti equipment in 1976 increased One of the first reactions of companies to the cyclical overall by 9.0%. So progress was made towards in- recovery was to replcnish their stocl

There must be clear decisions in favour Creation of a lasting basis for investment of free-market solutions 1976 has bccn described on various occasions as a The high number of unemployed has triggered off dis- year of "wage restraint". In fact, however, thc adjust- cussions on basic questions of our economic order in ment of wage policy to the cyclical situation has not the Federal Republic. Here, the protagonists of solutions been detrimental to ernployees but actually in their in- based on a centrally-planned economic systeni would terest. Since the cost of living rose by lcss than had like to See in ttie present situation a general breakdown been forecast, the increase in real wages grew to rough- of the free-market economy and link to this their re- ly 3% and thus exceeded cxpectations by a considera- riewed call for a systematic reorganization of our pre- ble margin. In the previous year, real wages had yrowri sent econon~icorder - a call that recurs time and again by only 1%. in spite of the higher nominal wage whenever our economy is exposed to greater strairis. increases, due to the stronger inflation rate. Thc resto- Completely wrong - and, fortunately, never cnvisaged ration of common sense to the field of wage policy not by the Governrnent - would be the idea of investment only contributed to a danipening of iriflation but also control by the state or state bodies. State bureaucracy prevented unemployment from rising evcn further. is and will remain a poor substitute for business initia- In 1976, for the first time since 1969, income frnm en- tive. Above all, there is little sense in creating or artifi- trepreneurial activity and property increased rnore cially maintaining jobs with state Support when these strongly, at 13.9%, than wages and salaries (+7.3%). Thus the wage ratio fell accordingly from 71.4% to For wage policy, this means that a return to the 70.2%. Certainly, this only corrects a small part of the agreed-scale wage increases of 1969 to 1974 will not be unfavourable development which had taken place since possible without endangering a large number of other the end of the 60's. Ir1 1969, the wage ratio was still at jobs. A resumption of the redistribution policy of earlier 65.2%. The downtrend in entrepreneurial profits since years in the incomes field would lead either to a re- that time was accompanied by a steady decline in the newed spurt in the rate of inflation, due to cost factors, properisity to invest, which was reflected initially in or to an indefinite delay, with profits falling again, in the growth rates and, later On, in absolute figures as well. necessary stimulation of investment activity. The in- After the decline in earning power over a pcriod of Comes policy decisions taken at the beginning of 1977 years and in view of the still unsatisfactory capacity uti- are thus, at the Same time, Setting the points for the fu- lization rate, no-one could expect investment to pick up ture cyclical development of unemployment in our econ- quickly in a single year of wage restraint. Nevertheless, omy. This is where the economic responsibility of the the improved profit situation in 1976 was already ex- social Partners lies. tremely important for the cyclical development. Compa- Unfortunately, the first wage tariff agreements of nies in all business sectors spent roughly DM 13 bn. on 1977 - particularly in the metal industries - do not give restocking and stock investment is frequently the pre- the impression that the necessary further progress to- Cursor of capital investment. In 1976, capital expendi- wards a wage policy geared to productivity growth is to ture grew by 7.2%. Finally, many companies used Part be expected in the near future. On the contrary, wage of their higher profits for the necessary financial increases involving a total increment of 8 to 8'/,% will consolidation, reduced the proportion of financing from be considerably higher than the rise in productivity outside sources and improved the ratio of own funds to which can be expected. Unit wage costs could thus rise borrowings in their balance sheets. In earlier business more strongly again, in contrast to 1976. Wage increas- cycles, this financial consolidation took place in the last es such as those in the metal industries harbour the phase of the downswing but failed to do so this time danger that both a significant reduction in unemploy- owing to the redistribution conflict which lasted until ment will be hampered and the successes already 1975, and was thus postponed until the first phase of achieved in stabilizing prices will be cancelled out. the upswing. With the progress in financial consolidation, the prospects of a general revival in in- vestment have im~roved. Necessity of lasting concolidation of public finances

Excessive wage claims are a threat to jobs In 1976, a slight reduction in the public deficits was achieved. But the real consolidation of public firiances is However, that a single improvement - limited to one a process that will take years. It can only be realized if, year - in the profit situation of companies cannot be with restraint on the expenditure side, revenues contin- sufficient to solve the unemployment problem, is also il- ue to grow as the cyclical recovery proceeds. lustrated by the development of the after-tax profit on A thinning-out of state expenditure on consumption sales ratio in German industry. In 1969, for joint stock seems necessary to avoid a one-sided reduction in the corporations, it had still bcen standing at 3.2%. By 1975 capital spending of central, regional and local it had fallen to 1.3%. On an international comparison, authorities, as happeried in 1976. Greater infrastructural Federal German wages have already, in many cases, ex- investment by the public authorities, as is already ceeded US-American levels and are amongst the planned, can help to reduce unemployment, particularly world's highest; as far as the profit ratio is concerned, in the construction industry. on the other hand, the Federal Republic is way behind. The reduction of the public deficits cannot be post- Of decisive importance, therefore, for a free-market poned indefinitely, otherwise a growing demand for growth policy, will be a lastinc] improvement in the prof- credit on the part of industry, in the not too distant it situation and thus in companies' future expectations. future, could collide with the financing needs of the Only in this way can industry's confidence in a soundly- public sector. Both together would be too much for the based and durable upswing be restored. money and capital markets, would push up interest real gross national product ttlvam cqneurnption - governmentconsumption . Pixad capital formation exports (goods and seMoa as per GNP accaunts) imports ) rates and thus endanger the necessary recovery in pri- 1976 fell to 14.3% after having risen to 16.8% in the vate investment. Same period of the previous year. At thc year's end, sav- To irnprovc the investrnent clirnate in the Federal ing increased again slightly. Rcpublic, the Governrnent should lower ttie tax burden In the investrnent field, efforts to remain liquid faded on companies. Above all, tangible cuts should be made into the background; the achievernent of highcr interest as soon as possible in non-profit-related taxes. The sti- earnings took ori greater importance again. Particularly rnulus this would provide for the expansionary forces in favoured were fixed-interest-bearing securities. On the the econorny would have a positive effect on the public other hand, only about half as rnany funds flowed into finances in the long run. savings accounts as in thc previous year. In the social field - particularly pension insurance - it Initially, term deposits with periods of notice of up to will be increasirigly necessary to develop the right four years continued to be reduccd until well into au- sense of proportion as far as reforrns are concerned and turnn. Frorn October onwards, they increased again con- to refrain from describing what is basically just the siderably so that, in Decernher, they exceeded their yearing of policy to overall econornic possibilities as a year-end 1975 volume by more thati 10%. "dismaritling of the welfare systern".

Bundesbank continues on stability course Slowly expanding credit demand

In 1976, the Deutsche Bundesbank adhered to its Credits to dornestic non-banks increased by alrnost money and credit policy airned at reducing inflation and 11% in 1976 and thus somewhat more strongly than in steadying growth. It did not change the discount or 1975. Again the growth rate iri lending to thc public sec- lombard rates or rediscount quotas in the course of the tor (18.8%) was significantly higher than in the case of year. Greater attention was aroused by the raising of credits to domestic companies and private individuals minimum reserve ratios on May 4 which, in many (9.2% ). cases, was mistakenly interpreted as a return to a more To begin with, continuing financial consolidation restrictive course. Apart from that, the Bundesbank caused the private sector to reduce its barik credits. made use of the "silent" instrument of Open market Companies' credit demand did not rise until spring. policy and pf controlling the Federal Governrnent's cash Above all, the trading sector used funds from outside arrangements, above all to neutralize the liquidity sources to replenish stocks. The transport and cornmu- growth in the economy caused by large-scale inflows of nications sector also, as well as the energy, water sup- foreign exchange. ply and rnining industries increased their borrowing The Bundesbank held firm to its target of expanding frorn banks. On the other harid, at the end of the rnonetary base by an annual average rate of no September, rnanufactiiring industry had not yet re-at- more than 8%. However, actual growth was sornewhat lained its end-75 credit volume but then went on to ex- higher due, above all, to the substantial purchases of ceed this level markedly by the end of 1976 ( +4% ). foreigti exchange. For 1977, the Bundesbank has again For households, 1976 developed into a "year of the published a target figure of 8% for rnoney stock growth. consurner credit". The total volurne of crcdits to ern- This will make it possible to continue controlling money ployed persons reached alrnost DM 100 bn. by the end supply with the flexibility which is particularly neces- of the year and thus showed growth of more than 25%. sary in conditions of dampened cyclical expectations. Above all, the low credit costs were a strong incentive for consurners to rnake use of these credits. They were taken up prirnarily to finance the purchase of rnotor ve- Saving ratio falls hicles and other consumer durables. A good 30% of the growth in total credit volurne was Private savings in 1976 were also high but did not accounted for by the public authorities, though they re- reach their unusual level of 1975. As thc cyclical recov- duced their borrowing, cornpared with 1975, by roughly ery procceded, the saving ratio for the first 6 rnonths of DM 10 bn. to about DM 30 bn. Share market lacking spirit fects of which, however, will only be felt in the business years ending in 1977, i.e. mainly frorn 1978. It eliminated For shareholders, 1976 was not a satisfactory year. the double taxation of distributcd profits by allowing the Share prices - according to the index of the Federal Sta- corporation tax paid by the company to be offset tistical Office (29. 12. 72 100) - fell by an average against the shareholder's personal income tax Iiability. 6.6%. Thus, a small part of the handsome price gains of This is by far the most irnportant development since a the previous year was lost. separate Corporation Tax was introduced and, at the At the beginning of 1976, the share market was still Same time, is the most striking result of the last tax re- feeling the influencc of an expected strong recovery in form as a whole. The prospects opened up by the new economic activity, a downward trend in interest rates Corporation Tax system are far-reaching and various: and arnple bank liquidity. The upward movement in choice of company form has less effect on taxation, prices continued until the year's peak level was reached elimination of the conflict of interest which has existed on March 17. After that, prices drifted downwards with up to now between large and srnall investors, improved sorne fluctuations and, on October 29, touched their platform for self-financing by joint stock companies, lowest level of the year, 11% below the year-end 1975 greater attractiveness of the share as a saviny and in- figure. During the upward phase which then followed, vestment instrument and thus, at the Same time, an im- almost one half of the preceding fall was recovered. portant contribution to capital-formation. Althouyh, on The reasons for the market's weakness in the early the one hand, the automatic tax credit represents a tax summer included, amongst others, unrest on the foreign reduction, it should be remembered, on the other hand, exchange markets and the Bundesbank's increasing of that Corporation Tax as a whole will increase. This the minimum rescrve ratios on May 4. In spite of the means that companies will have to re-think their reserve central bank's Statement to the contrary, this was inter- formation and profit distribution policy and it may cer- preted in many quarters as a reversal of its liquidity and tainly be assumed here that, on balance, shareholders interest rate policy. During the remainder of the year, stand to benefit. One cause for concern, however, is the the pronounced summer slack period in the economy fact that this tax credit is not available to non-resident had some influence. The pessimism this produced had a shareholders of Gerrnan companies. It would be urgent- marked effect on stock market sentiment. The market ly desirable for the Federal Parliament's call to the Fed- tended to pay less attention to positive reports than to cral Government to review double taxation agreements negative ones from companies and branches. In in this connection, with Special reference to the level of addition, foreign holdcrs parted, at times, with larger capital yield tax, to be translated into action quickly and quantities of German shares so as to rsalize exchange with priority so that the discrirnination of non-resident rate profits. shareholders can be elirninated as soon as possible. The fall in share prices since March together with im- Also regrettable is the fact that the Iifting of the dou- proved cornpany profits resulted in the valuation of ble tax burden is restricted to the combination of Corpo- shares, on average, at only 9.8 times the current year's ration and lncome Tax. We think that parallel regula- profits at the end of 1976. Such a low valuation has tions with respect to Property Tax are inevitable. The been rare in the last few years. raising of Corporation Tax to 56% has increased, by a The average dividend on listed shares fell from not inconsiderable margin, the burden imposed by the 13.67% at the end of 1975 to 12.77% at the end of 1976. non-deductible Property Tax. Since the price level also fell over the Same period, the All companies have a duty of disclosure towards their average yield rose from 3.52% to 3.62%. shareholders, but the task of informing the shareholding public about the new compensatory tax credit system rests largely with banks as the institutions that hold se- Corporation Tax reform means better prospects for the curities in trust and handle the payment of dividends. share They will also have to do most of the technical work in- volved in implernenting the law and this will mean a An important event in 1976 in the field of taxation was sizeable cost burden. the passing of the Corporation Tax reform, the full ef- Bond market: a record year again The assets of the individual groups of funds devel- oped along different liries, corresponditig to the differ- In 1976, the bond market developed even more posi- entiated movements on the share and bond markets. tively ttiari iri the extremely productive previoirs year. The assets of share-hased funds increased by a relative- Thc record volume achieved in 1975 was practically ly small amount, in spite of a higher volume of certifi- eqilalled with net sales of fixed-interest paper totalling cates in circulation, frorn DM 9.79 bn. at the end of 1975 DM 48.5 bn. (1975: DM 48.9 bn.). Here, the rnarket's to DM 10.14 bn. at the end of the year under review. As- genuine abcorptive power actually exceeded ihis sets of bond-bascd funds, on the other hand, rose cori- amount by a large margin; the Bundesbank was able to siderably to DM 8.45 bn. compared with DM 5.51 bn. at reduce its security holdings - accurnulated in 1975 as a the end of the previous year. DM 3.0 bn. was invested in result of its operi market operations - by DM 6.5 bn. open-end propcrty funds compared with DM 2.75 bn. at During thc year, however, there were sorne extreme the end of 1975. fluctuations, in spite of the rnarket's very good condi- tion. From the point of view of "quality" as well, 1976 was High liquidity an the Eurocapital market an irnprovernerit on 1975. Thus, yields were reduced froin more than 8% by an average of about 1%. At the In 1976, the Eurobond market closed with a record end of 1976, the current yield was about 7.4%. At the new issue volume of US$ 17.7 bn. This was a good 75% sanie time, it was possible to extend the maturities of up on the previous year's volume. In Wall Street too, the riew issues. Towards the end of the year, the rnarket previous year's volume was just about doubled in 1976. had manaqed to return to the issuing conditions that Thus, strong growth was not just a European but a tiad existed before the high interest phase. world-wide phenomenon too on international capital The public sector remained the largest issuer on the rnarkets. bond market. It accounted for more than three quarters On the market for international DM-bonds, as a part of total net sales of bonds. The share of mortgage of the market as a whole, the developrnent was less bonds failed to maintain its already reduced level of the pronounced. The new issue volurne, at DM 6.5 bn., re- previous year of roughly 11 %. Industry's recourse to the mained approximately at the preceding year's level. It capital market was extremely Iow. lndustrial bonds con- rnust be borne in rnind here, however, that there is not a tiriiicd to be true "rarities" as they have been for years. cornpletely free market for international DM-bonds in so The first industrial bond issue (DM 150 rn.) for four far as the volume of such bonds is fixed at a suitable years was floated in December. level each rnonth, as a rneasure of "self-regulation", by Non-banks carne very much to the fore as domestic a committee representing the chief issuing banks. Ow- purchasers of bonds. They took about two thirds of net ing to the divergent developments in their respective sales. On the other hand, the share of the banks fell to volumes, there was a norrnalization in the relationship less than 40%. Iri the two previous years, they had tak- between DM and dollar-bonds, after the D-Mark had en roughly one half of net sales. Non-residents featured had, to sorne extent, an unusually high market share again as buyers, with about DM 3 hn. In the two preced- during the previous few years. In 1976, the D-Mark's ing years, they had been net sellers of bonds. share was about 20%; roughly one half of all bond is- sues were denorninated in the dollar. Besides these two Investment funds with very high net inflows currencies, and the Swiss franc, the Canadian dollar also gained in importance in 1976 as an international The sales performance of Gerrnan investrnent cornpa- bond issue currency. nies iri 1976 was very good. With a net inflow of DM The main reason for the record perforrnance of the in- 4.51 bn., the previous record of DM 4.36 bn., achieved in ternational bond rnarkets is the abaternent of inflation 1972, was exceeded. Net inflows into bond-based funds expectations. Investors have gained more confidence in were considerably higher than those into share-holding long-term investrnent - a trend that also benefited the funds. Open-end property funds were able to raise their German bond market. Secondly, the good sales results sales slightly. were also favoiired by the high liquidity accurnulated in Opportunities in the "Pacific Basin"

Iri November 1976 Deutsche Barik org- anised another foreign representative confererice in the Federal Republic of Gerrriany. This time it was branch mari- agers and rcpresentatives frorri ttie "Pa- cific Basin" region who took part in a ten-day visit to a number of tiranch areas of Dcutsche Bank. Their job was to give interested custorners first-haiid advice. At the sarrie time thcy them- selves were to become acquainted with the latest experience arid current proh- lems of our bank on the spot. The pic- ture below shows the discussion with customers in Frankfurt (Main). In the picture centre right they arc being wel- comed by chartning Asian girls from the Philippines and Japan, dressed iri national costume.

At a oress conference (cf. uicture centre ieft and top photo) ierribers of the Board of Managing.. .. Directors brought out the importance of the Pa- cific Basin. The region Covers a total of 220 million sq. km. and is represerited by the Western areas of the USA and Canada, Japan, the other E. arid S.E. Asian states, and by AustraliaINew Zealand. Almost half of world national product is produced in the Pacific Basin and one third of all imports are ordered there. Almost 40% of the world's popu- lation lives in this region, rouyhly four fifths of which is made up by the Pacific Ocean. Deutsche Bank considers the Pacific Basin, with its wealth of raw ma- terial~ and its important financial centres (such as Los Angeles, San Francisco. Hong Kong, Singapore arid also Tokyo), to be the region with the greatest growth potential. almost all important economies as a result of the only ingness of investors to make a greater volume of funds limited size of the cyclical upswing. Finally, the major available at longer terms reflected their strengthened new issue currencies, such as the dollar, D-Mark and confidence. As in the preceding years, the OPEC states Swiss franc, were also the strong currencies. There is were amongst the important investors. In addition, sub- much to support the contention that, as long as these stantial amounts from the highly liquid domestic mar- three conditions are fulfilled - weaker inflation kets of some industrial nations were also invested in the expectations, high liquidity, strong currencies as issue Euromarket. currcncies - the market will remain productive. At the In 1976, medium-term Eurocredits increased by the Same time, this would relieve the Eurocredit market. be- equivalent of US$ 28.6 bn.; growth was thus one third cause the first-class borrowers at least would probably larger than in the previous year. With regard to tend to raise loans on the longer-term market at fixed borrowers, it became increasingly clear that some coun- rates. tries were operating close to the limits of their borrow- ing capacity or had already reached them, either as a re- Structural change on the international capital markets sult of their accumulated debt burden or due to unre- solved economic or political problems. Since, at the Today, the Eurocapital market is available to prospec- Same time, the large majority of Eurobanks had not re- tive international bond issuers as a competitive alterna- laxed the standards of creditworthiness they required of tive to Wall Street. Earlier, large issues of US$ 100 rn. or their debtors, the radius of action of these banks be- more could only be placed on the US market. The ca- came more restricted. Competition for good debtors pacity of the market to absorb Eurobond issues in com- grew more intense and this was reflected in a down- parable magnitudes was tested for the first time in 1976. ward pressure on spreads. The outstanding event was the bond issue, managed by Developing countries' recourse to the Euromarket - in Deutsche Bank, for the European Comrnunity, whose absolute and relative terms - was even stronger than in three tranches totalled US$ 1 bn. Another example of the previous year. They accounted for about 54% of the the Eurocapital market's increased self-confidence was volume of newly-extended medium-term credits. On the the US$ 300 m. bond issue placed for Australia. Thus, other hand, the share of state-trading nations fell from the market for Eurobond issues now ranks alongside 12% to roughly 9%. Wall Street as an efficient parallel market - a develop- At the beginning of 1977, activity was lively on the Eu- ment which, from a world econornic point of view, can romarket. A number of large-sized country credits were only be welcome. arranged, with spreads continuing to fall. But it would The structural change can also be seen in the fact that, be a serious mistake to infer from the smooth handling over the last few years, several of the large universal of these big credits that the readiness to lend of the banks have become more prominent in the international banks making up this rnarket is inexhaustible. On the issuing business, while the management groups of Eu- contrary, here too limits havc begun to appear in the re- rodollar loans used to be dominated by the specialist Cent past. issuing banks - the Arnerican investment banks and the British merchant banks. Besides the necessary rnarket knowledge and market experience, the placing power World economic activity: recovery but no broad developed by the universal banks no doubt contributed upturn in investment largely to their successful activity in the international issuing business. In 1976, a cyclical recovery in most industrialized na- tions displaced the world-wide recession. Growth was particularly strong in the first half-year. It was support- Efficient Eurocredit market ed above all by a strong increase in stocks. However, hopes of a cyclical upswing as seen in the sixties were The volume of the Eurocredit market grew in 1976 by not fulfilled. In the second half of the year, there was a close on 15%. With a high level of liquidity, it again marked cooling off in the economic climate. Similar to proved its efficiency and its capacity to adjust. The will- developments in the Federal Republic, the cyclical re- covcry did not spark off an upturri in investment, al- greater stability, would strengthen international readi- ttiough ttie conditions for a renewed increase in invest- ness to bolster the necessary adjustment processcs ment activity generally improved. In spite of world-wide with standby credits and thus to prevent excessively economic growth, unemployment was not redirced. At strong restrictions of foreign trade. In 1976 too, thanks the end of 1976, numerous countries had the highest un- to good international cooperation, it was possiblc to employment figures since the war. ward off threatening protectionist measures which In the majority of countries, the cyclical recovery Set would have affected world trade. in at a vcry high level of inflation. Progress towards greater stability was hampered by continuing high nom- inal wage increases. Nevertheless, the rise in consumer Rising balance of payments disequilibria again prices in the industrialized countries as a wtiole, at 8%, was below the previous ycar's level (11 % ); here, the sit- As a result of the recession, the balance of payments uation continiied to differ widely from country to coun- situation in the Western industrialized nations had try. eased in 1975. With the cyclical recovery in 1976, the In some riatioris - above all, the United Kingdom and deficits of some of these countries increased again ltaly - inflation not only caused domestic economic sharply. The total deficit of the OECD countries leaped difficulties, but considerable exterrial problems as well. from US$ 6.5 bn. in 1975 to more than US$ 20 bn. again. Persistent deficits iri the payments balances led to a fur- In the case of the OPEC countries, their 1976 balance thcr sizeable increase in these countries' foreign debt of payments surplus, at roughly US$ 35 bn., was slightly and a fall in their exchange rates. To curb inflatiori, ltaly up on its previous-year Icvel, after having fallen marked- and the United Kingdom were coinpelled, in spite of the ly in 1975. The rise in these countries' imports was far by no mcans satisfactory cyclical sitciation, to switch to lecs vigorous, due riot least to the infrastructural prob- a restrictive course in their economic policy - thougti lems which had arisen in various cases. The surpluses usirig very different mcthods. Since autumn 1976, were concentrated primarily, as hitherto, on the four oil France has been pursuing a clearly restrictive policy un- states of the Arabian Periinsula: Saudi Arabia, Kuwait, der the "Barre-Plan", with the airri of restoring greater the Unitcd Arab Emirates and Qatar. In 1976 too, no dis- stability. On the other hand, at the end of the year, Ja- turbances of the world monetary System were caused pan switched to a more expansive course. In the USA by the disposal of these surpluscs. Just how far they also, the new President has givcri thc first iridications of were genuinely "recycled" directly to the deficit coun- a policy of rcstrained expansiori, although a clear pic- tries cannot be determined precisely. The Euromarket turc of his overall conception has not yet emerged. uridoubtedly performed a considerable recycling At the end of 1976 and the beginning of 1977, the function, though here, of course, the country risks are world economy was thus characterized by an increasing borne by the lending banks of the iridustrial nations and differentiation between coilntries following a more ex- not by the OPEC irivestors. pansive cyclical course and couritries trying to get a The precarious foreign trade and payments situation better grip on inflatiori by means of restrictive mea- of many non-oil developing countries is reflected in thc sures. Since the restrictive policy of deficit countries rapid growth in the credits thcy have raised abroad over will dampen their irnport pull, doubts that there will be a the last fcw years. In 1976, the external debt of these further recovcry in economic activity have grown. countries rose to more thari US$ 160 bn., with about However, a continuation of the moderate cyclical upturn three quarters of this debt accounted for by only ten in the USA, Japan and the Federal Republic - together countries. Thus the ratios which are usually taken as the they account for just under one third of world trade - criteria for the assessment of country risks, such as im- would appear sufficient to avert a setback in world eco- Port Cover ratio and debt Service ratio, have detcriorat- nomic activity. On the other hand, a changeovcr in ed further for these countries, with corresponding con- those countries to a more intensive, and thus sequences for their future borrowing capacity. For these inflationary, expansion policy would sow the seeds of countries in particular, the last increase in crude oil the next recession. In the sarne way, an economic prices means further heavy burdens. The persistently policy, on the part of the "problem" countries, aimed at rapid rise in the state-trading nations' indebtedness and More information through publicity The main emphasis in our publicity measures in 1976 was once again on In 1976 Deutsche Bank further intensi- advertisements in the daily press, In au- fied its advertising activities. Besides turnn there was also a special series of constant publicity measures for consu- full-page advertisements in periodicals mer credit and building financing giving radio and TV Programmes, which business, campaigns and special opera- ran under the rnotto "Switch over to in- tions were carried out which concen- forrnation". trated on a wide variety of services. Publicity brochures and leaflets provide Our publicity continues to aim at fully a fully cornprehensive picture of our en- informing a wide section of the public tire range of services. They are intended about the cornprehensive range of serv- primarily as an aid in talks with ices we offer. This informative, consu- custorners, as special direct publicity mer-oriented advertising has in some measures and for Counter displays. sectors helped considerably to expand business and win new customers. Advertising in our windows is a major elernent of our publicity efforts. It is Through constant publicity measures particularly important in view of the im- we also succeeded in making Deutsche pact achieved outside business hours. Bank's new logo, introduced in spring There is a wide variety of ways in which 1976, very well known. This new logo Posters can be used. In busy urban riow appears on all publicity rriaterial. areas we also advertise through large their high borrowing on the Eurodollar market also whose basic airri is to srnoothen out - and strengthen - came under discussion in 1976. Effects on ttie future individual countries' forcign exchange revenues. This growth of East-West trade cannot be ruled out. In 1976, requires a further development - iricorporating a critical the stagnation in the exports of western industrialized examination of our experierices so far - of compcnsato- nations to the Eastern Europcan arca alrcady mearit an ry financing for export flcictciations, as practised at the appreciable shift from the above-average growth rates present time under the IMF's compensatory facilities in earlier years. At any rate, the state-trading natioris' arid the European Community's Lorne Agreement. debt vis-a-vis the West will certainly not be able to One of thc wishes voiced by the developing countries grow at thc samc Pace as over the last few years. at the last UNCTAD confereiice was for a global debt re- mission or a moratoriuin on the extcrnal debt of certain country groups. All concerned should beware of taking North-South dialogue: still many Open questions siich a step. It would certairily not improve debtor mor- ale but would probably weakcn the balance of pay- The developing countries' call for a "ncw cconomic rnents discipline of the rccipients of foreign funds and ordcr" has grown louder. But opinions are still widely prevent the optimal application of these lendings. Such divergent on the nature and magnitude of the chanyes a measure would discriminate against those countries which should be souyht. Neittier the UNCTAD confer- that, up to now, have exercised self-restraint and pur- ence in Nairobi in May 1976 nor the discussions of the sued a cautious debt policy and reward those who have specialist commissions in Paris have so far produced failed to exhibit the necessary sense of proportion and concrete results iri the North-South dialogue. responsibility in this respect. We also consider the dis- The main item in the developing nations' list of de- cussion of a possible, more or less general, moratorium mands is the "integrated raw material prograrnrne". to be ill-advised; it could well reduce the willingness of This foresces, amongst other thinys, price and quantity potential lenders to take iip engagements in ttie coun- controls, index-links, long-terrn supply and purchase tries concerned or in the developirig countries in gener- agreements as well as buffer stocks to be financed from al. a "joint fund" for a number of raw materials. Thc aim is That the indebtedness of the developing countries, in to stabilize and improve, with the help of these view of the accurnulated volume, prescnts a serious measures, the developing countries' incomc and foreigri problem, is obvious. On the private markets, not a few exchangc situatiori. countries are already coming up agairist the limits of This prograinme is Open to considerable doubt and their borrowing capacity. A greater contribution of pub- this has been reflected in the discussions held so far. Its lic aid towards covering future financing needs is there- realization would cnmesh the commodity markets in a fore inevitable. There can be no overlookirig the fact network of controls and create immense financing re- that, in view of their budgetary problems, most industri- quirerricrits; the misapplication of resources and over- al coiintries are likely to find it mure difficult than in the production would be inevitable. And, not least, our not past to meet the figure of 0.7% of GNP which still particularly encouraging experiences with the European Counts as ttie target for public development assistance. agricultural markct system should serve as a warning. It seems to us to be of priority importance, therefore, to Lastly, the demanded indexation of raw material channel public funds above all to the structurally wcak- prices would Set up a danyerous iriflationary mecha- est developing couritries. Also necessary is a greater nism in the world economy, with the side-effect - prob- OPEC engagement in these regions. But those countries ably desired by 110-one - of "punishing" the relatively already at higher levels of development should make stable industrialized nations but benefiting those more more effort to strengthen their creditworthiness in the tolerant of inflation. Moreover, it would be the develop- eyes of foreign investors by means of confidence-build- ing countries poor in raw materials, i.e. the neediest of ing policies arid to encourage the infusion of lorig-term alt, that would suffer most as a result of the programme private capital - particiilarly in the form of direct as a whole. investment, for example. Far more sensible, in our opiniori, than the proposed More important thari raw material agreements and raw material programme arc efforts and procedures financial assistance, however, for the improvement of

Our Bank's Business

Consolidated balance sheet total tops DM 100 bn. the persistent pressure on lendiny rates. At the same for the first time time, however, there was no corresponding reduction in the rates for non-bank customers' term and savings In 1976, the Deutsche Bank's balance sheet total rosc deposits, though interest on savings deposits was low- by DM 10.5 bn. (18.5%) to DM 67.4 bn. Business volurne cred by 'I2%in March. expanded slightly more strongly (19.0%) owing to the The higher earnings on the expanded business vol- increase in endorsernent liabilities. urne only just balanced out the shortfall in earnings Growth in business volume was restrained in the first caused by the decline in the interest margin. Overall, half of the year (+ DM 1.4 bn.) but accelerated in the earnings on the bank's business volurne, i.e. the interest second half, especially in the last two months. Overall, surplus, remained virtually unchanged. the balance sheet total and business volume recorded In the services sector, commission income and other considerably higher growth than the year before. The earnings increased, though less strongly than the year integration of the Deutsche Ueberseeische Bank's To- before. The growth of 3.9% in the surplus in this sector kyo branch into Deutsche Bank and the new business of was due above all to the expansion of our foreign our London branch contributed to this result. These two business, which was appreciably stronger than in 1975. foreign branches' business was included in the The securities business as a whole also rnade an impor- Deutsche Bank's balance sheet for the first time in 1976. tant contribution again to the operating result. While The Group's consolidated balance sheet total reached comrnission earnings on our customers' business re- DM 105.2 bn. at the end of the year. The growth of DM mained more or less unchanged, earnings on own ac- 13.7 bn. is attributable above all to the development of Count trading expanded. the Deutsche Bank AG; other significant contributing On the expenditure side, we were able to keep the factors were the expansion of our Luxembourg subsidi- growth in staff costs relatively low. On the one hand, ary and the further growth in our two rnortgagc banks' there was no further increase in the nurnber of ernploy- business. Five years ago the consolidated balance sheet ees and, on the other, expenditure on pensions and oth- volume was just under DM 50 bn. It has thus more than er benefits was lower as the pension provisions had al- doubled in half a decade. ready been replenished in 1974 and 1975 in accordance with the Part value principle. However, for an enterprise with such a high labour intensity as our bank, due to its Overall result satisfactory - but profit ratio declining Service structure, the 5.3% rise in staff costs means an increase of almost DM 70 m. in absolute figures. The strong growth in the volurne of business was not Cost pressures have further intensified on the materi- reflected in an improved operating result. The surplus als side. The growth of 17.8% here is due to the general on current business contracted in fact by 12.3%. The rise in prices, but also to higher expenditure on publicity profit ratio, i.e. the operating result as a percentage of and, finally, reflects the increasing automatiori of the the 14.3% higher average business volume, also dec- banking business. lined further, having already deteriorated the year be- With such an increase in administrative costs, the in- fore against 1974. terest surplus, which remained virtually unchanged, Decisive for this developrnent was the fact that, on was no longer adequate to cover staff and material the earnings side, the interest surplus was only just costs as in the two previous years. maintained at its previous year's level despite the The fall in the surplus on current business was more growth in credit volurne and although the commission than offset by the extraordinary account, whose cover surplus in the services sector rose by DM 20 m., this requirement did not reach last year's figure owing to the was neutralised by an increase of DM 129 m. in person- absence of special burdens. Together, the bank's ordi- nel and material costs. lnterest earnings, the most im- nary and extraordinary accounts produced a slight im- portant element on the earnings side, suffered as a re- provement in pre-tax profits. sult of the further decline in the interest margin. In 1976 Taken by itself, this result can be considered satisfac- it fell appreciably below 3%. Against a background of tory. However, with regard to the future development, a keen competition, the interest margin narrowed due to virtually automatically rising cost burden is to be ex- pected on both the personnel and rnaterials sides, even 3% can be considered adequate here. Under these cir- assuming a rnore or less constant labour force. There curnstances and despite all flexibility in business policy, will be only limited scope for absorbing this annual a customer- and service-related charges policy linked to growth in costs, even if full use is rnade of all the possi- the increases in labour cost levels will be unavoidable in bilities Open to us for rationalisation, for the bank's all- the foreseeable future. round character cornpels us, in the custorners' interest, to rnaintain a large - and in sorne cases still expanding - se~icecapability in all sectors. The resulting high Flexible matching of borrowings and lendings costs of our se~icepersonnel are thus fixed costs which can only be influenced to a lirnited extent. Only a With the tighter interest rnargin, it was rnore irnpor- srnall proportion is covered by earnings in the sewices tant in 1976 to rnatch the rnaturities of borrowings as sector, so these costs have to be met out of the interest closely as possible in terms of volurne and cost to the surplus. In the future it will not be possible to absorb requirernents on the lending side. As a result, business the steadily rising administrative costs through growth policy tasks in connection with the bank's financing in business volume as in the past, as long ac the inter- needs changed several tirnes in the Course of the year est rnargin rernains at, or even falls below, its low level and Lto the Same extent) there were unusual fluctua- of 1976. In the long run, only an interest margin of over tions in the developrnent of credit volurne. The invest-

Financing balance 1976 amounts in millions of DM

I Use of funds Source af funde Non-bank cuotomers' sight and term deposits 1,392

Savings deposits 1,041

Debt instruments 1,624

GrowPh of cmdit ~olume 7,47Q 1

~nciraasein liquid fwnds and inveratrnents 4547 Banks' depo~its 6,%8$

Gt@~hin otheat Securitiw and Fnvestments in subsidsarfes end assaciatsd eornpaniss 423 Other borrowings 718

Otkr dispositions 31 2 In~rehasein crwn funds 100 ment bonus and companies' preparatiotis for their full- proportion of these funds was reinvested on the assets year statements accounted for a substantial part of side in the international interbank business. credit dcmand, whilst yeri~iinecyclical impulses played The hank's own bonds have grown steadily in import- no decisive role. ance for covering customers' longer-tcrm credit reqiiire- In ttie first quarter, credit demand contracted by DM ments. This is clearly reflected in the financing balance. 1.4 hn. From May onwards, derriand for industrial crcd- This financing instrumcnt's share in new funds has ris- its revived. Ari important factor of influence here was en from 7.9% in 1975 to 15.1%. The bank resorted on a thc closing dates for thc investment boniis. At mid-year limitcd scale to its refinancing facilities witti thc credit volume was about DM 1.7 bn. up ori the previous Dciitsche Bundesbank. year's level. Growth rates also rose sharply in July and August. After a quiet development at the beginning of autumn - 3rd quarter as a whole + DM 0.7 bn. - there was again a strong increase in credit demand from the Savings deposits worth DM 17.7 bn. on over 5 million business sector, particularly in the last two months of savings accounts the year. At the end of the year credit volume, at DM 41.7 bn., was 21.9% highcr than thc year before. After the record year 1975 the growth in savings dc- The growth in the last two months may be attributed posits has levelled off. They rose in 1976 by just over prirnarily to cornpanies' preparations for their full-year DM 1 bri. to DM 17.7 bn. 1 -t 6.3%). The averaye balarice statements of account. Past experience has shown that per savings account was DM 3,455 as against DM 3,502 companies repay a substantial part of their foreign cred- the previous year. The number of savings accourlts in- its towards the erid of ttie year with credits taken up at creased by 7.7% to 5.1 million. home. In December 1976 this trend was particularly Ocir customers showed preference for savings ac- pronouriced. The rise in interest rates for short-term Counts with a statutory period of notice. Savings on Euro-DM credits was probably a contributiny factor. these accounts rose by 8.5%, while longer-term savings The financing balance shows that, at the end of the dcposits increased by only 4.0%. This development was year, over two thirds (69.5%) of ttie total inflow of funds also infliienced by the maturing of a large number of during the year had becn uscd to expand credit volumc. premium-bearing and state-sponsored savings con- Claims on non-bank customers alone absorbed almost tracts. 45%. Not quite one quarter (23.7%) of ttie new furids re- Lively demand continued for our cash savings plan ceived were cised to increase liquid assets and invest- with bonus. A total of 90,000 new bonus savirigs coti- ments. The sum of DM 2.5 bn. shown here also includes tracts were concluded. The total contract value of all bonds and debt instrumerits worth slightly over DM 1 types of savings plan included under the "Erfolgssystem bn. acquired from the public sector. 100" scheme amocinted to almost DM 5 bn. at the end On ttie finaricing side, saviriys deposits - ttie most of the year. "stable" element on the deposits sidc - accounted for Customers showed incrcasing intcrcst in our savings just under 10% of incoming funds in 1976. Ac important certificates. The volutne of Deutsche Bank savings certi- sectors of the credit business coritinued to stagnate, the ficates in circulation rose in the course of the year by moresensitive tion-bank custoiners' term deposits were 56% to DM 664 9. reduced to a level of DM 8 bn. up to the middle of the Our customers' aggregate new savings were consi- year. From mid-ycar onwards, the barik agairi took in ari derably higher than is reflected by the development in increasing volume of term deposits so that in the financ- savings deposits. Many customers were anxious to in- ing balance the inflow of non-bank customers' sight and vest their savings in securities giving higher yields. This term deposits, at DM 1.4 bn., accounted for almost 13% interest was fostered in our investmerit counselling, of total ncw funds. which helped to boost purchases of securities from bal- Credit institutions' term deposits - the most flexible ances on savings accounts to an unusually high level. group of deposits - expanded, especially in the last two The net transfer from savings accounts to securities, at months of the year. This also reflccts Deutsche Bank's DM 2.3 bn., exceeded the record figure of the previous strong position in the international business. A sizeahle year by DM 778 m. The growth in savings deposits, purchases of savings Strong interest in longer-term credits certificates and security investments (net) from savings balances produced a total inflow of new savings of DM Of the total growth of DM 7.5 bn. in credit volume, 3.6 bn. in 1976. This is roughly one third less than in DM 5.8 bn., or over three quarters, was made up of 1975 - an exceptional year for savings - but is a sub- claims on non-bank customers, DM 1 bn. of credits to stantial advance on the previous record of DM 2.9 bn. in banks and DM 0.7 bn. of credits on bills. 1974. With regard to claims on non-bank customers. long- term credits have expanded particularly strongly, at 36.7%. while short and medium-term credits rose by Payments sector continues in deficit despite 13.8%. Only a small Part of the growth in long-term bor- constant rationalisation rowing is connected with new investment projects. In the business sector, in fact, longer-terrn credits were In 1976 Deutsche Bank handled 162 rnillion Cheques used primarily for consolidation purposes, the compara- and debit orders and about 256 rnillion transfers. A total tively low interest rate level acting as a particular incen- staff of about 8,000 was employed for payments inside tive in this respect. There was growing demand for West Germany and a further 3,600 for foreign payments. longer-term credits arnong private customers, too. Thus, almost a third of the labour force is employed in In the short and medium-term sector, the degree to this service sector. which existing credit lines were utilised rernained well To provide facilitics meeting all customers' payment below 50% on average for the year and was thus unu- requirements both at home and abroad is an integral sually low. On the one hand, this reflects the srnall bor- Part of the comprehensive service offering of a modern rowing requirement of many companies and, on the universal bank. Through constant rationalisation and other, was due partly to the favourable financing possi- continuous technical improvement the bank is endea- bilities on the Euromarket. As this type of financing is vouring to maintain the quality of this service, while re- also provided by our cubsidiary, Compagnie Financiere straining the growth in costs in this labour-intensive de la Deutsche Bank AG in Luxembourg, a certain bal- sector. Due to its structure, the payments business is a ance was achieved here within the Group as a whole. high deficit area, for charges Cover only a small Part of Credits to the public sector included under the claims the costs. So far, only the universal character of the on non-bank customers remained virtually unchanged bank has made it possible for us to balance out this loss in 1976. The bank played a Part in rneeting the continu- through earnings in other business sectors. ed high public sector borrowing requirement, in particu- The Deutsche Bank is one of the founding rnembers lar through additional purchases of medium-term notes. of the Society for Worldwide lnterbank Financial Tele- The rise in credits on bills was attributable, amongst communication (S.W.I.F.T.) in Brussels. The object of other things, to our efforts to provide low-interest fi- this company is the transmission of "financial nancing possibilities to meet srnall and medium-sized information", including payments, between the member firms' short-term credit requirements as in the past. banks from - at present - 15 countries in Europe and In contrast to the corporate sector, private house- North America via a common telecommunications net- holds' credit demand expanded steadily throughout the work. We expect this to speed up our international pay- year. At the end of the year the bank had extended a to- ments considerably and produce a further internal ra- tal of DM 2.4 bn. more than a year ago in the form of tionalisation of this cost-intensive customer service. programmed credits and building finance loans. Our in-house preparations for the on-line connection of our branches to this System have been largely com- pleted. Two hundred of our branches will have their Strong expansion in programmed credits own address and will be connected directly to the S.W.I.F.T. network. This international Computer associa- Demand for personal loans, which had already leapt tion will become operational in 1977. sharply the year before, remained extremely lively in 1976. Custorners' interest was centred on Loans for Specified Purposes for financing car purchases. In addition, Srnall Personal Loans (PKK) and Personal Brisk building financing business Loans for Specified Purposes (PAD) were also taken up increasingly for financing furniture and household con- In spite of the tighter rnarket and keen competition, surner durables. we were able to expand our business in the building fi- New advances under these credit prograrnrnes to- nance sector substantially. Dernand was focused on talled DM 2.3 bn. in the business year. Total outstanding credits for building or purchasing own hornes. Our clairns in this sector thus rose by 27% to DM 2.5 bn. At "BauKreditSystem" was again well received by our the end of the year 480,000 customers had utilised the customers, for the cornbination of various financing ele- PKK and PAD credit prograrnmes. The average credit ments under this scherne offers individual and flexible arnount rose by 12% to DM 5,230. solutions to builders' problems. In autumn 1976 the Besides the instalrnent credits, our custorners rnade "Deutsche Bank Flexible lnterest Rate Mortgage'' was increasing use of the Personal Overdraft Credit to Cover introduced which rounds off our service offering in this short-term money needs (+37%). To meet custorners' field. In the first rnortgage sector, our customers can requirements, the bank raised the ceiling for Personal now choose between a fixed-interest mortgage and the Mortgage Loans IPHD) from DM 150,000 to DM 200,000 Deutsche Bank Mortgage, whose interest rate is Iinked rnidway through the year. In view of the favourable to rnarket developmcnts. New contracts worth rnore terrns, there was also strong demand for these loans. than DM 2 bn. were concluded for the Deutsche Bank The volume outstanding rose by 17% to DM 2.6 bn. Mortgage, the fixed-interest mortgage, the prelirninary In 1976 cornpetition was particularly keen throughout bank loan and the interim financing credit alone. the rnarket for prograrnrned credits. Nevertheless, we The proven cooperation with building and loan asso- managed to further expand our share of the rnarket. ciations was expanded further, for the cornbination of This success was fostered not least by our continued bank credits and savers' building loans offers attractive advertising, whose informative style was designed to forms of financing, particularly in the junior rnortgage provide rnore transparency on terrns and conditions. At sector. the end of the year the volurne of programrned credits outstanding arnounted to DM 6.2 bn., which is equiva- Securities business satisfactory lent to a share of 20.1% of total claims on non-bank customers. In 1976, total turnover in securities business for non- bank customers rose by 11% : here the "basis effect" is important, for record figures had already been achieved New credit model for small and the year before. medium-sized businesses The drop in the capital rnarket interest rate by a full percentage point in twelve months to an average of The bank is constantly striving to expand its service 7.1% caused attention to centre on the bond rnarket. offering to rneet the requirements of its various custorn- Turnover for non-bank custorners in this sector expand- er groups. A new credit model under the narne "Small ed accordingly by over 10%. Business in borrower's- Business Credit" (GAK) has been developed, for note loans again recorded above-average growth. instance, specifically for small and medium-sized Turnover in shares for non-bank custorners contract- industrial, craft and comrnercial businesses and profes- ed - as is often the case when prices are falling - by just sionals for financing investrnents. This credit rnodel, under 6%. though it should be rernernbered that volume which offers repayment periods of up to twelve years had doubled in 1975. Option business continued to gain and a fixed interest rate guaranteed for five years, is in importance and, at our bank, was over 30% up on particularly suitable for financing all kinds of expansion 1975. We participated fully in the investrnent boom in and rnodernisation projects, but can also be used for 1976. Business for our custorners' account (excluding setting up a business or practice. The new model has banks) rose by over 50%. found a good response among our customers. Our customers continued to show strong demand for foreign securities of all kinds. At the Same time there was considerable growth in foreign interest in invest- ments on the German market, especially in fixed-inter- 404.6 m., DM 254.8 m. of which was re-investcd, corres- est securities. ponding to a re-investmcnt ratio of 63%. The largest Growth rates in securities business with banks were and oldest DWS share fund INVESTA recorded the high- even higher. est sales with an inflow of new funds amounting to DM The number of safe-custody accourits we rnaintain for 530.6 m. The fund did not remain complctcly unscathed our non-bank customcrs rose in 1976 - assisted by indi- by the downtrend in prices on the German share vidual counselling - by 8% to almost 900,000. A factor markets, but, at 3.2%, the fall in valuc was comparative- contributing to this result, accounting for roughly one ly small. quarter, was thc issuancc of staff Shares by further well- The DWS bond funds fared well again. They achieved known industrial companies. The proportion of safe- record results in terms of price as well as new sales. custody accourits with a market value of less than DM The price of thc INRENTA unit appreciated by 12%. 10,000 declined slightly (now 59%) as a result of further New funds amounted to DM 351.4 m. The total assets of piirchases. At the Same time the market value of the the INRENTA fund rose by DM 394.0m. to DM safe-custody accounts maintained for our non-bank 1,904.0 m. INTER-RENTA units were also in strong de- customers rose to DM 53.9 bn. mand. On a sectoral comparison, INRENTA and INVES- The Deutsche Gesellschaft für Fondsverwaltung mbH TA rank among the largcst West German security funds. (DEGEF), Frankfurt (Main), a wholly-owned subsidiary of The open-end property fund "grundbesitz-invest" Deutsche Bank which offers portfolio management serv- managed by our affiliate, the Deutsche Grundbesitz-In- ices primarily for institutional investors, administered vestmentgesellschaft mbH, Cologne, and sold by filnds totalling roughly DM 2 bn. at the end of the year Deutsche Bank and Wüstenrot, took in new funds worth (previous year DM 1.6 bn.). The nilmber of special funds DM 18.4 m. in 1976. No units were returned to the fund. for insurance companies, company pension and welfare The fund's assets rose to DM 741 m.: 82% of these as- funds, associations, professional organisations and 0th- Sets was invested in property. The price of the "grund- er institutional investors continued to increase. A sub- besitz-invest" unit gained 6.4%. stantial volume of funds flowed into new and existirig The property assets are widely dispersed regionally funds again during the past business year. in terms of property size and the business of the tcn- The staff funds Set up on the initiative of individual ants. 52 properties are held in 41 cities and towns: 83% enterprises and managed by DEGEF also expanded in are commercial, 11% residential and 6% multi-purpose volume in 1976. For any enterprise - whatever its legal properties. form - staff funds are a particularly suitable instrument Our American property fund "Pennzoil Place", with a for introducing employees to securities saving as a form placemcnt volume (own capital) of DM 108 m., met with of individual capital formation. It remains to be hoped lively interest among customers and was placed within that the now widespread view that participation in staff a short space of time by a banking syndicate led by us. funds should enjoy the same benefits as staff share is- "Pennzoil Placc" is one of the major buildings in the city sues will find expression in corresponding legislative of Houston, Texas. measures. Together with a number of foreign Partner banks wc The funds of DWS Deutsche Gesellschaft für Wertpa- established the open-end Asia Fund, whose units have piersparen mhH, Frankfurt [Main), in whicli we partici- been sold since mid-May 1976. The Nomura Securities patc together with other banks and private bankers, re- Company Ltd. acts as investment counsellor and man- corded new unit sales worth DM 1,288.3 m. in 1976. The ager for the assets invested in Japan and South-East total assets of the funds managed by DWS rose from Asia. The price of the fund has developed favourably. DM 3,641.4 m. at the end of 1975 to DM 4,757.6 m. on While the subscription pricc amounted to US$ 50.-, 31. 12. 1976. DWS thus administers over one quarter of plus a 5% issue premium, the issue price stood at US$ the aggregate assets of all the public security funds be- 62.63 at the end of 1976 (net asset value US$ 59.65). longiny to the Bundesverband Deutscher Investment- Gesellschaften. In 1976, the DWS funds INVESTA, INTERVEST, IN- RENTA and INTER-RENTA distributed a total of DM International loan business: renewed expansion

In 1976 Deutsche Bank was lead rnan- ager for the two largest loan transac- tions of the year: the issue of the Euro- pean Economic Cornrnunity (EC), rnade up of three tranches, and the issue of the Commonwealth of Australia.

The agreement with the EC on a US$ 500 m. bond issue was signed in April 1976. This was the last tranche of a fi- nancing package totalling the equiva- lent of US$ 1 bn. With that, the largest- ever international capital rnarket trans- action had been concluded. The bonds were underwritten by Deutsche Bank and a bank group it had forrned, and were placed privately. Earlier, in March 1976, there had already been two public bond issues of the EC (cf. two pictures below) amounting to US$ 300 rn. and DM 500 m., which had been similarly handled by bank syndicates under our bank's management.

In September 1976 Australia and Deutsche Bank concluded agreements for the flotation of a US$ 300 rn. Euro- bond issue (cf. picture top right). It was made up of three tranches with maturi- ties of 7, 10 and 15 years. Australia thus took up a dollar loan on the Eurobond rnarket for the first time since 1967. The centre picture shows another loan being concluded. At the end of May 1976 the City of Kobe and Deutsche Bank signed an agreement for a DM 100 rn. issue with a Japanese state guarantee. This was the sixtti DM loan taken up by the city on the German capital rnarket. Domestic issuing business again lively rung von Industrie-Anlagen mbH (GEFI), Frankfurt (Main), also expanded again. Thc AKA Ceiling A, rnadc With a rnarket value of rouqhly DM 6 bn., issuing available by the shareholders, was raised in three business in domestic shares almost reached the pre- Stages frorn DM 4 hn. to DM 6.5 bn. The growth was ac- vious year's peak result despite ternporary deteriora- counted for enlirely by tied financial credits to foreign tions in climatc on the stock rnarket. The hank par- irnporters. This facility was cstablished by AKA in 1969. ticipated in 41 capital increases and 12 capital Ceiling C, an offshoot of Ceiling A earrnarked for such adjustments, in rnost cases as rnanager. Special rnen- credits, was raised from DM 1.5 bn. to DM 4.5 bn. tion may be made of the capital iricrease to a nornirial In 1976 our bank's international orientation was un- DM 300 m. of the recently established Mercedes-Auto- derlined by the introduction of our shares in London and mobil-Holding AG at the beginning of 1976, which gen- Arnstcrdarn. Thc Deutsche Bank sharc had already bcen erated an inflow of funds worth about DM 1.8 bn., as listed earlier in Paris and Vienna and on three Swiss ex- well as the share issues of Bayer AG and August Thys- chanyes. sen-Hütte AG, which werc also for above-average amounts. The situation on the bond market was again condu- Keener competition on the Euromarket cive to lively issuing activity. The bank participated in the placement of numerous bond issues by the public As in previous years, wc channelled our international sector and other borrowers. credit business in the Eurofinancing sector chiefly through our Luxembourg subsidiary, the Cornpagnie Financiere de la Deutsche Bank AG (CFDB). However, Strong international business with the opening of our London branch and the estab- lishment of Deutsche Bank (U.K.) Finance Ltd.. London, The expansion of West Germany's foreign trade and we have also been activc in the Eurobusincss frorn this the keen dernand on the world credit rnarkets gave a centre; an added advantage here is the possibility of strong boost to our international business in 1976. Nu- granting credits on which a foreign withholding tax can merous links with foreign business Partners were be absorbed. strengthened and new custorners acquired. Our turno- In 1976, the trend towards large syndicated credits ver in connection with the financial settlernent of for- was particularly pronounccd on thc Eurocredit market. eign comrnercial business expanded appreciably as a Borrowers were predorninantly states and public sector result of the substantial growth in our Gerrnan custorn- enterprises. We acted as manager for numerous ers' exports and irnports. However, cornrnission incorne transactions, such as the loans to the Kingdorn of Spain, did not increase to the same extent. Mexico and Argentina. In addition, we carried out a Our cash and "per aval" credit business with foreign large number of irnportant industrial financings, for credit institutions and non-bank custorners continued to instance, for the Fiat-Brazil project, the National Petro- expand strongly. So far, we have been able to satisfy chemical Cornpany of Iran and Electricite de France. most of our custorners' credit requirernents. However, With arnple liquidity, cornpetition on the Euromarket the concentration of credit demand on individual intensified sharply in 1976. This caused terrns to ease countries, due in many instances to deficit payrnents and rnaturities to lengthen in the Course of the year; but balances, necessarily brings the limits to risk-taking the "softening" of terrns for prirne borrowers did not as- more and more to thc forc. This developmcnt also rais- surne the Same proportions as in 1974. es the question of risk participation by the export indus- try. Custorners' credit requirernents showed a trend to- wards longer rnaturities and, with the further increase in International issuing business strongly expansive large-scale transactions, a trend towards higher arnounts. In the international issuing business, the bank was The volurne of credit extended by the AKA Ausfuhr- able to further expand its traditional position as a lead- kredit-Gesellschaft and the Gesellschaft zur Finanzie- ing issuing house, particularly in the dollar sector. A to- "Two-tier" strategy abroad has proved its worth

For quite a long time Deutsche Bank has been employing a two-tier strategy in its international business. On the one hand it is continiiirig to develop the successfully operating subsidiaries founded jointly with the six other EBlC banks. At the Same tirne it is extendirig its own presence and the activilies of its hranches in major intcrnational centres. Of late, opening branchcs of its own has been to the fore -, a slight shift in emphasis.

In January 1976, our bank's represerita- tive office in London was converted into a branch (cf. picture top left). This was the sequel to a long traditioti. In 1873 - three years after the Deutsche Bank was established - the first foreigti branch was opened, in London. It oper- ated until 1914. Ir1 Tokyo, what tiad uritil ttieri beeri the 8 branch of the Deutsche Ueberseeisctie Barik was taken ovcr in July 1976 as a brancti of Deutsche Bank. Thr: piclurc below rigtit shows a scetie frorri a press conference iti Tokyo with Dr. Wilfried Guth, Spokesman of the Board of Man- aging Directors, and the picture below left the entrance to the branch. In order to strengthen the contact with domestic and foreign banks in S.E. Asia a repre- sentative office was also opened in Hong Kong in October 1976. In the centre picture Dr. F. Wilhelm Christians, Spokesman of the Board of Managing Directors, is conductirig a press confer- ence held on that occasioti. Iti 1977 Deutsche Bank will convert its repre- sentative office in Paris into a tirarich. Deutsche Barik has no arnbition to be represented in all financial centres of the world. But wherever it is present, it does Want first-class representation. tal of 116 Eurobond issues were managed or CO-man- isational changes have becn made. We should like to aged by the bank; 52 were DM issues. Aniong the inter- thank DUB's customers for their loyalty to our house national DM bond issues, a particularly significant part during the - now completed - transitional period. The was played again by 14 issues of international organisa- foreign branches in South America conrinue to operate tions placed under the lead mariagement of our bank. under their traditional names, Banco Aleman Transa- The fact that these funds were channelled mainly to the tlantico in Argentina and Paraguay, and Banco Alemäo developing countries underlines their world economic Transatlantico in Brazil. They will be offering their cus- importance. tomers the comprehensive service range of Deutsche Bank. During the year under review it was also decided to Higher turnover in the foreign exchange sector open a branch in Paris. Preparations are currently under way; its inauguration is planried for the middle of 1977. A characteristic fcature of the forcign exchange mar- A newly established representative office in Hong kets in 1976 was the considerable price fluctuations in a Kong, to which a finance company is attached, is de- number of currencies. Hectic and nervous movements signed to strcngthcn our activities in the Pacific region. werc the order of the day. Hiyher demands were thus At the end of the year the bank maintained a total of placed on our dealers in serving our customers and for- 69 bases in 45 countries. eign correspondents. Foreign exchange turnover rose by just under one quarter, while earnings contracted slightly. Development of our associated banks The growth in turnover in precious metals was almost as high, due chiefly to the intensification of our interna- Banco Comercial Transatlantico, Barcelona, expanded tional business. Earnings were substantially up on the its branch nctwork further. Eight new offices were preceding year. Dealings in foreign exchange and pre- opened, bringing ttie total number now to 82. The bank cious metals for own accourit produced a slightly lower increased its share capital in the year under review from result than in 1975. Ptas. 890 m. to Ptas. 1,296.4 m. (approx. DM 45.5 m.). The International Mexican Bank Ltd., London, en- larged both its balance sheet volume and operating re- Foreign branch network expanded sult in 1976. In the wake of a restructuring of the share- holders' interests, our holding was increased to 11.53% In 1976 we further expanded our institution's interna- at the end of 1976 and, in a second Stage, to 14.5% at tional presence. Our branch in London commenced op- the beginning of 1977. erations on 15. 1. 1976. It has established contacts with The UBS-DB Corporation, New York, in which the Un- our domestic and foreign business friends and has al- ion Bank of Switzerland and our bank each have a 50% ready attracted a number of new clients. A financing capital interest, recorded considerable growth of busi- company has been attached to the branch. ness volume in both the securities dealing and issuing The Tokyo branch of the Deutsche Uebersecische sectors. It participated in the underwritirig of 359 new Bank was converted into a branch of Deutsche Bank issues. Several financing operations were carried out for with effect from July 1, 1976. Its busiriess agairi devel- German companies in the USA in the year under review. oped strongly, with continued demand among Japanese The busincss activitics of the Forcign Trade Bank of customers for medium-term dollar credits. The branch- Iran, Tehran, in which we have an 11.8% interest, ex- es in London and Tokyo showed a combined busincss panded strongly again in the past year. To rneet this volume of DM 3.4 bn. at the end of the year. development, its capital was increased to Rials 2,100 in. The integration of the Deutsche Ueberseeische Bank, (approx. DM 71.5 m.), and thus doubled, in September which had been prepared in 1975, was approved by the 1976. We participated in this capital increase, maintain- Ordinary General Meetings of Deutsche Bank and the ing our percentage holding. Deutsche Ueberseeische Bank in the year under review The lndustrial and Mining Development Bank of Iran, and thus became legally effective. The necessary Organ- which plays an irnportant role in financing industrial in- vestments under Iran's 5-year plan, also recorded con- more than 10,100 offices and ernployed a staff of almost tinued strong growth of its business volumc. In line with 202,000 at the end of 1975. this expansion, the capital was increased last Septem- The "European Advisory Committee", which deals ber by Rials 5 bn. to Rials 12 bn. (approx. DM 409 m.). with principles of EBlC cooperation, is made up of the We thereby increased our shareholding from 0.9% to following rnembers: 3% and are now the institution's second largest foreign shareholder. We also participated in the placement of a J. R. M. van den Brink US$ 200 m. syndicated Eurocredit for the IMDBI. C. F. Karsten The Iran Overseas Investment Bank Ltd., London, Amsterdam-Rotterdam Bank N.V. whose shareholders are made up of two lranian banks A. Monti and cight non-lranian banks, including ourselves, ex- A. Riyhi panded its business further. The bank participated in Banca Commerciale ltaliana S.p.A. particular in the placement of several large syndicated credits for Iran's industrial sector. A dividend was paid H. Treichl in the past business year for the first time. G. N. Schmidt-Chiari The Societe Camerounaise de Banquc, YaoundE, Creditanstalt-Bankverein which in rnid-1976 maintained 23 offices and showed a W. Guth business volume of CFA-frs. 52.5 bri. (approx. DM 510 F. W. Christians (from 19. 5. 1976) m.), is by far the most important cornmercial bank in F. H. Ulrich (up to 18. 5. 1976) Cameroon. It has continuously strengthened its leading Deutsche Bank AG position during the past fivc years. Ovcr this pcriod thc Lord Armstrong of Sanderstead bank's share capital has grown from CFA-frs. 600 m. to M. G. Wilcox CFA-frs. 2 bn. The bank's capital was increased in Nov- Midland Bank Limited ember 1976 to CFA-frs. 2.3 bn. (approx. DM 22 rn.). We have a 5% holding in this institution. R. Alloo Our associate bank in the lvory Coast, the Societe P. E. Janssen lvoirienne de Banque, Abidjan, has shown a very satis- Societe Generale de Banque S.A. factory business developrnent since its foundation al- M. Laure most 15 years ago. At the end of September 1976 its J. Richard (up to 29. 9. 1976) business volurne amounted to CFA-frs. 55.7 bn. (approx. M. Vienot (from 30. 9. 1976) DM 541 m.). Societe Generale (France)

EBIC: proven cooperation Positive development of EBlC joint ventures The friendly cooperation between seven European banks - Amsterdam-Rotterdam Bank N.V., Arnsterdarn; In 1976, all the EBlC joint subsidiaries were able to Banca Commerciale ltaliana S.p.A., Milan; Creditanstalt- further expand their business activities. On a regional Bankverein, Vienna; Midland Bank Limited, London; So- basis too, the network of affiliations was enlarged. ciete Generale de Banque S.A., Brussels; Societe The European Arab Holding S.A., Luxernbourg, for Generale, Paris, and Deutsche Bank AG - again proved instance, in which the EBlC banks participate together a success. The joint subsidiaries were further expanded with 16 Arab banks and financial institutions, one Swiss and the exchange of experience in the various sectors of bank and two Japanese banks, established a subsidiary the banking business was continued. in London, the European Arab Bank Limited. The new The aggregate balance sheet volurne of the banks bank started business on December 15, 1976. working together within EBlC amounted to US$ 142 bn. The Europäisch Asiatische Bank AG (Eurasbank), at the end of 1975, as against US$132 bn. at the end of Hamburg, is planning to Open a new branch in Manila, 1974. The seven institutions maintained a network of Philippines. We report as follows on the individual EBlC subsidiar- alised further in project financing and has been able to ies: record its first rnajor successes. It was highly active on The European-American Banking Corporation and the the London foreign exchange and money markets. The European-Arnerican Bank & Trust Company, both domi- balance sheet total rose to C 257 rn. (US$ 437 m.). ciled in New York, again operated successfully in 1976 The European Pacific Finance Corporation Limited in their traditional fields of business, such as the servic- (EPFC), Melbourne, which operates branches in Sydncy ing of European companies' American subsidiaries, and Port Vila, New Hebrides, is active in the Australian- credit business with Amcrican and international compa- Pacific region. It specialises in medium and long-terrn nies and correspondent business with foreign banks. industrial financings and is participating incrcasingly in Business with private American custorners continued to the syndication of international credits for borrowers in develop gratifyingly and helped to strengthen deposits. South-East Asia. The company perforrned successfully At present 99 branches are operated in the city of New in the 1975176 business year and paid a dividend of 6%. York and on Lony Island. The balance sheet total rose by 17.2% to A$ 191 rn. (DM The two institutions showed a combined balance 488 m.) as pcr June 30,1976. sheet total of US$ 5.12 bn. as per 31. 12. 1976. Deposits The Europäisch Asiatische Bank AG (Eurasbank), and amounts due to customers rose to US$ 4.39 bn. and Hamburg, with foreign branches in Hong Kong, Jakarta, advances to US$2.84 bn. The number of crnployees Karachi, Kuala Lumpur and Singapore and a regional was over 3,600. office in Manila, was able to consolidate and further de- For the Banque Europeenrie de Credit (BEC), Brussels, velop its position in the expanding South-East Asian re- which specialises in medium and long-term Euromarket gion. The bank's balance sheet total exceeded DM 1 bil- financings, 1976 was also a satisfactory year, although lion for the first time at the end of its fourth full business investment activity, especially amorig the larger Europe- year (1975: DM 896 m.). Business volume rose to alrnost an customers, continued to decline. Borrowers are DM 1.4 bn. (1975: DM 1.1 17 m.). spread widely over a number of countries and are chief- Healthy growth was recorded in credit business, ly industrial enterprises. However, financing was also though dernand for credit in South-East Asia did not provided for public sector institutions' infrastructural corne up to expectations. The bank expanded its activi- projects. In the period under review the share of short- ties further in the medium and long-term credit term financings (up to one year) increased. The balance business, including credit syndication. The Eurasbank sheet total rose to Belg. frs. 73.6 bn. (US$ 2,066 m.). CO-manageda US$ 100 m. credit for the Central Bank of The bank again occupied a leading position in the the Philippines. The Hong Kong branch opened two medium and long-term Eurocredit business in 1976. It new city sub-branches at the beginning of 1977. managed or CO-managed30 international credit syndi- Against the background of a continued favourablc de- cates, representing a total volurne of US$ 1,119 m. It velopment in exports to the Arab countries, the Euro- participated in a further 35 syndicated credits amount- paisch-Arabische Bank GmbH, Frankfurt (Main), and the ing to US$ 2,731 m. European Arab Bank (Brussels) S.A., Brussels, recorded The European Banking Company Limited, which was further growth in their business activities. Both institu- established in London in 1973, continued to strengthen tions are subsidiaries of the European Arab Holding its position as the EBlC Group's merchant bank in 1976. S.A., Luxernbourg. In the year under review the bank acted as lead manag- The activities of the Europäisch-Arabische Bank er for 7 issues and participated in the management of a GmbH are centred chiefly on the Settlement and financ- further 9 issues. These issues represented a total value ing of German cxports to the Arab world. The business of US$742 m. volume reached DM 542 m. at the end of 1976. The Eu- The bank assumed a leading position in the growing ropean Arab Bank (Brussels) S.A., which is engaged in market for variable interest bond issues, which was util- the syndicated Eurobusiness, chiefly with Arab ised in particular by other banking institutions. It also custorners, expanded its balance sheet total to Belg. frs. managed or CO-manageda number of syndicated Euro- 17.5 bn. (US$ 486 m.). credits; for instance, it managed the 5-year US$ 300 rn. credit for the European Comrnunity. The bank has speci- Sport in the bank

More than 10,000 members of the Deutsche Bank staff belong to the bank's 117 sports clubs. Their sporting activity has traditionally been support- ed by grants from the bank. In line with the varying sizes of the branches, the membership figiires for the sports clubs differ greatly. Thcy range from 4 tiietn- bers to over 2,000.

The main sports pursued are swimming, football, handball, bowling, tennis, gymnastics and rambling. But other ball games, judo, air-gun shooting and rowing are also catered for. Several clubs also engage in "mental sports"; the most popular disciplines are chess and "skat".

In addition to contests withiti the bank, tournaments are sometimes arranged with dornestic and foreian- banks and cornpanies. The top picture shows one of these football tournarnents, which was held in Fratikfurt (Main). An inter- national stock exchange table tennis cup tournament takes place each year iri Mannheim (centre picture).

For the tennis fans the Board of Manag- ing Directors of Deutsche Bank donated a challenge cup. A tournament is held every two years in a different place. The participants are selected through knock-out matches. The picture below right, shows the presentation of the challenge cup to the winning team at the 1976 tournament in Berlin. In the picture below left, employees of the Frankfurt Central Office are relaxing at their evening gym class. Our Staff

Staff level almost unchanged Developing our junior staff

In 1976 we again aimed to have adequate staff to look The basic essential for lasting business success is, after our business activities at home and abroad with- we believe, systematic training and development of our out significantly increasing the number of employees. staff for the future. During the year under review we With an expanded volume of business and a greater in- spent about DM 50 m. on basic and advanced training, take of apprentices, this could only be achieved by fur- including close on 60% for vocational training. That is ther improvement in our staff's qualifications. We were roughly 5.6% of the salaries paid during the Same peri- also faced with tasks of a special nature in taking on 370 od. Using assessments, which are carried out at regular members of staff of Deutsche Ueberseeische Bank: they intervals according to a method now well tested, and have now been fully integrated. At the end of 1976 the systematic staff planning, we are gradually succeeding bank had 36,319 employees, including the DUB staff tak- in rapidly filling more and more of the positions which en On. That is only 325 ( + 0.9%) more than a year ear- fall vacant with members of staff who satisfy the higher lier. Turnover once again declined. The proportion of requirements. Thanks to thorough personnel work we women to the staff as a whole fell slightly to 51.2%. are also increasingly able to select candidates from our own ranks for almost all managerial positions.

Growth in number of ataff ftom 1987 to 1876 Growth of expenditure on staff including patt-time employees and apprentices I

Mele Fsmale D Total

Thoueenda

35

30

I 25

20 15 1 10

5 I More training places Training our staff for the future

We airned again in 1976 to give as rnany young peo- The young, qualified bank clerks continue to form the ple as possible recognised vocational training. In 1975 rnain reservoir which later provides our specialist and we had already strongly increased the nurnber of train- rnanagerial staff. In addition we engaged 60 young peo- ing places we could offer. Last year we took 1,509 new ple with a university background. The rnajority of them apprentices. This brought the total number of appren- will be prepared for a position in banking through a tices with us up to 3,464 at the end of the year, as corn- two-year terrn as trainee - a System which we have pared with 3,226 at the end of 1975. Of the new appren- found in the past to function well. For this reason we tices 52% had passed the "Abitur" exarnination. In 1977 are planning to take in slightly higher numbers of uni- we shall also do all we can to rnake as many training versity graduates in the coming years too. places available as possible. At the sarne time we en- Special efforts must be devoted to rneeting staff re- deavour to employ most of those who qualify as regular quirements for our international business - particularly mernbers of staff or to rnake arrangements for thern to in connection with the establishrnent and expansion of join other cornpanies. Staff with sound banking training offices abroad. With this in mind we have started to are highly regarded in business and industry. build up a staff pool for international business. It is rnade up of qualified ernployees from all sectors of business, who are individually prepared for the duties

School background of ernployees as at 31.12.1976

11.1% "Abitur", university end col!aae entrance examinatians 4.8% Unlversity and college graduates

49.8% 1 Junior school-leaving 34,3% certificate or equivalent Mher school-leivers they will take up. Our international business naturally our internal advanced training continued to focus rnain- offers good developrnent prospects for a large number ly an the credit, international and investment business of ernployees. This provides a considerable incentive for sectors, and rnore generally on sales training. On the in- staff with the appropriate qualifications. ternal operations side our activities concentrated on ac- counting/planning, auditing and organisation. For our Wide range of advanced trainlng Programmes rnanagerial staff we continued the systernatic training in questions relating to personnel and team rnanagement, In the year under review we again provided intensive and in conference and public speaking techniques. At a further training for our staff in the form of specialised special serninar rnanagerial staff are also given sorne in- and rnanagernent serniruars. One aspect to which we at- sight into data processing and the ways it can be used tribute speclal irnportance is irnproving their knowledge in banking. of languages. In 1976 about 14,600 male and fernale staff rnembers As rnarketing becornes rnore and rnore strongly ori- took part in 752 advanced training serninars. 607 of ented towards different groups of custorners it is of in- these were speeialised and prornotional training serni- creasing irnportance in the banking sector to have ver- nars with 12,100 participants, and 145 were rnanage- satile all-round staff. To help cater for this we have in- rnent training serninars with about 2,500 participants. troduced a special Course of serninars for those who The rnajority of the lecturers are rnembers of the bank's Iöok afier corporate and private custorners. Beyond this, own qpecialised staff or rnanagement.

SWff rtruoture by funotlon Dwelopmsnt 187&1@80; from 1877 expected dwelopment (banking staff)

"1973- 100% (stan of systematic staff planhing for the entire bank) Deutsche Bank active in vocational Training as Bank Clerk, of May 10, 1973. training At the Same time it gives our branches, where training of the apprentices is car- Again in 1976 numerous school-leavers ried out decentrally, the opportunity of applied for an apprenticeship with our adapting the training flexibly to their lo- bank. Many of thern took an aptitude cal and individual circumstanccs. test. In auturnn 1,509 young people - half of thern males, half females - were Practical training starts in the sectors able to start their vocational training on which training is based, e.g. ac- witti Deutsche Bank. count-keeping, payments business and savinys business. In a small branch the The aim of this training is to prepare the apprentices learn the basic principles of participants for the work of a qualified modern customer service and counsell- bank crnployee and to provide them ing in close contact with the bank's with the opportunity of acquiring their ciistomers. But securitics business -- first practical working experience. The the practical side is presented by visits prelirninary vocational training for our to the stock exchange (picture above young colleagues is based on the train- right) - international business and the ing plan drawn up by our Ccntral Train- handling of credit matters arc also part ing Departrnent. It ensures that on the of thorough training for a bank clerk. In one hand the training satisfies the re- our bank, training is in the hands of ex- quirernents of the Order on Vocational perienced employees and lecturers. At the classes held in the bank the knowl- edgc gained in practice is given a sys- tematic foundation, expanded upon and put into proper perspective as part of the overall flow of business. The pic- tures give an idea of the wide range covered tiy our vocational training.

The training ends with the examination at the Chamber of lndustry and Com- tncrce and the presentation of the com- mercial diplomas. After completing the apprenticeship further training is possi- ble under the Deutsche Bank training and advancement System. Our Kronberg training centre has also increasingly Good working relations with the Staff Councils helped to promote the exchange of information be- tween members of staff and the management. It has be- The work with the Staff Councils and their various come a sound tradition that leading pcrsonalities from committees continued in a spirit of cooperation and un- business and industry give lectures in Kronberg on cur- derstanding at all levels. In order to discuss personnel, rent questions concerning their field of business and social and organisational matters the management met talk with members of the staff and guests. on several occasions with the General Staff Council and the Youth Representatives of the entire bank, and also met regularly each month with the General Staff Com- Staff shares in demand mittee. Numerous suggestions were realised. Economic questions concerning the bank and its environment Last year we offered staff shares to the employees were discussed in a frank and Open manner with the and retired members of staff of our bank and our do- Economic Committee of the General Staff Council. The mestic subsidiaries for the third time. The favourable matters in which mainly the local Staff Councils now by preferential prico and our staff's awareness of the ad- law have a right of CO-determination and participation vantages of saving through shares brought record re- gave rise to a lively exchange of views at the branches. sults. Our Staff Councils played a noteworthy part in All in all the understanding cooperation helped to main- helping to inform the employees. About 80% of the em- tain the good working atmosphere in the bank. We ployees purchased up to two staff shares with a nomi- should like here too to express our thanks and recogni- nal value of DM 50 each. Using the tax advantages tion for this. granted the shares were bought at the preferential price of DM 156.- per share. lncluding the retired members of staff and those employed by our domestic subsidiaries High proportion of ancillary staff costs we achieved an overall participation rate of C. 75%. The number of holders of staff shares (including retired Expenditure on salaries and social security contribu- staff) has risen to approximately 35,000 in our bank, and tions rose during the year under review by 7.9% to DM to 38,000 in the Group. 1,216 m. This was attributable to the scale-salary rises of 5.4% as from March 1, 1976, to which structural im- provements must be added, and above all to the dispro- Results of the staff share scheme in 1976 portionately high increase once again in social security contributions (16.1%). The proportion of ancillary staff

Entitled Purchase orders Number of shares costs to total staff expenses is rising steadily. A one tu subscrihe No. in "/o purchased percent increase in salaries at present means additional costs (incl. social security contributions) for the bank of Deutsche Bank AG Employces DM 10.5 m. Five years ago the Same percentage would Retired memhcrs only have meant DM 5.8 m. of staff In addition to the compulsory social security contribu- Domestic tions amounting to DM 145.2 m. we paid out DM 167.8 subsidiaries m. for retirement pensions and other benefits. The con- Employees Retired members tinued above-average rise in social security contribu- of staff tions and additional burdens imposed by new legisla- Deutsche Bank tion are restricting the bank's scope for granting volun- Group tary benefits to an ever greater extent. Total staff expen- Comparative figures: Ses (salaries, social security contributions, expenditure Overall on retirement pensions and other benefits) rose during result 1975 the period under review by 5.3% to DM 1,384.4 m. Overall result 1974 During the year 395 members of staff retired. At the end of the year we looked after 8,284 retired members of staff and widows and 153 orphans. The fact that our Thanks to all the staff bank was built up again and engaged large numbers of ctaff at the beginning of the fifties is reflected in the ris- The 1976 results were only achieved through com- ing number of employecs celebrating long terms of bined successful efforts. We thank all the staff for their service. Last year 443 members of staff had been 25 contribution. years with the bank. 53 employees celebrated 40 years of service, and 2 were ablc to look back on 50 years of service with the bank. It is with deep regret that we report the death of the following members of our staff:

Walter Badura, Bremen Heinz Limbach, Taunus-Zentrum Eschborn Gerd Beyling, Lübeck Karl Lorent, Frankfurt (Main) Richard Bieringer, Munich Lieselotte Markmann, Düsseldorf Uwe Birkenstock, Bielefeld Markus Müller, Frankfurt (Main) Udo Block, Düsseldorf Ursula Müller, Hanau Enno Borowsky, Bremen Helga Neif, Taunus-Zentrum Eschborn Wilhelm Brück, Cologne Joao Augusto de Oliveira, Düsseldorf Klemens Demuth, Cologne Erwin Walter Plewnia, Düsseldorf Margit Dötschl, Coburg Reinhard Pötter, Wuppertal Walter Drösemeier, Osnabrück Werner Rauser, Siegen Margrit Ebel, Taunus-Zentrum Eschborn Gisela Reinhäckel, Frankfurt (Main) Karl Emsbach, Neuwied Heinrich Saam, Frankfurt (Main) Manfried Engelke, Hamburg Dr. Joachim Seidel, Mannheim Edith Flink, Offenbach Gottfried Speer, Stuttgart Leo Freymann, Düsseldorf Kurt Schlichting, Herbert Fürhoff, Bielefeld Katharina Schmidt, Munich Friedhilde Gelbke, Düsseldorf Heinz F. Schulz, Hamburg Hildegard Gerschermann, Essen Yasmin Stichnoth, Hanover Bertus Hartz, Hohenlimburg Friedrich Strähle, Stuttgart Fritz Hering, Ludwigshafen (Rhein) Peter Stübig, Goclar Eckard-Wulferich von Heyden, Frankfurt (Main) Heinrich Tillmanns, Opladen Gisela Hoffmann, Düsseldorf Helmut Volmer, Cologne Regina Kerler, Friedrichshafen Ernst Weber, Karin Klammroth, Josef Weber, Düsseldorf Paul Knauf, Frankfurt (Main) Kurt Welt, Cologne Burkhard Krumteich, Cologne Friedrich Zweydinger, Essen Gerhard Landfahrt, Munich

We mourn the passing away of 259 retired employees of our bank.

We shall always honour their memory. Notec on the Statement of Accounts for the Year

Balance Sheet years. The development of the volume of business dur- ing the year under review, and as compared with the Volume of business previous year, is shown in the graph below. The major changes in our balance sheet in 1976 are In the 1976 financial year the balance sheet total rose shown in the diagram "Financing balance" on p. 30, by DM 10.5 bn. 18.5% to DM 67.4 bn.; including en- broken down according to the source and use of the dorsement liabilities, the bank's volume of business funds. The most important items on the balance sheet grew by DM 10.8 bn. 19.0% to DM 67.8 bn. The vol- showed the following changes against 1975: ume of credit accounted for DM 7.5 bn. of this growth, rising itself by 21.9%. The inclusion of the Tokyo branch of Deutsche Ueberseeische Bank, which was taken over as of 1. 7. 1976, and the positive development of our in millions London branch, opened at the beginning of 1976, also Assets contributed to this growth. Funds from outside sources of DM rose by DM 9.9 bn. = 19.1%. Cash reserve ...... This expansion of business was not only considerably Cheques, items received for collection ...... larger than that of the preceding financial years in abso- Bills discounted ...... lute terms, it was also the highest relative increase for 8 Claims on credit institutions ...... Treasury bills and discountable Treasury bonds ...... Bonds and debt instruments ...... Growth in the volume of business during the year Other securities ...... Claims on customers ...... with agreed life, or subject to agreed period of notice, of a) less than four years ...... h) four years or longer ...... Investments in subsidiaries and associated companies ...... Land and buildings, office furniture and equipment ...... Sundry assets ...... Other assets ...... Balance sheet total

in rnillions Liabilities of DM

Liabilities to credit institutions ...... + 5,884.4 Banking liabilities to other creditors ...... + 2,432.6 including: term deposits ...... savings deposits ...... Debt instruments ...... t 1,623.8 Provisions for special purposes ...... + 167.6 Own funds (capital and published reserves) t 100.0 Other liabilities ...... + 314.3 of prev. yr. Balance sheet total + 10,522.7 Turnover on our non-bank customcrs' accounts rose to or interest rate risk, but nevertheless inflcience the liq- DM 2,107 bn. as compared with DM 1,905 bn. in the pre- uidity ratios from the liability side. The structure of our ceding year. Turnover per member of staff reached DM foreign branches' business also played a part here. 65 m. in 1976, and an average of 15,000 business trans- Thc composition of liquid funds and total liabilities is actions was recorded per employee. shown in the comparative table.

During the past year the bank at all times observed Liquidity the principles concerning capital resources and liquidity laid down by the Federal Banking Supervisory Office in At the end of the year the bank's liquid funds amount- accordance with §§ 10 and 11 of the Banking Law. ed to DM 16.8 bn; they covered 27.0% of the liabilities of DM 62.1 bn. as compared with 33.5% at the end of 1975 (total liquidity). Assets Cash liquidity (ratio of cash reserve to liabilities) fell to 7.3% (9.1% in previous year). Securities The decline is partly due to interest arbitrage and money transactions, which do not involve any liquidity Our holdings of Bonds and debt instruments rose dur- ing the year under review by DM 1.1 bn. to DM 3.1 bn. The increase was largely in short and medium-term End of Erid of paper of public authorities, whereas the holdings of 1976 1975 bank bonds fell. DM 2.6 bn. = 83.8% was eligible as - in millions of D M collateral at the Deutsche Bundesbank. Securities, so far as they have not to be shown under Cash reserve other iterns, which consist almost entirely of shares and Cash in hand 301.7 309.6 ...... investment fund certificates, rose by DM 345.6 m. to DM Balances with the Deutsctie Bundesbank ...... 4,194.4 4,406.5 1,875.5 m. This amount includes holdings of DM 1,339.0 Balances on postal cheque accounts . . 26.2 19.4 m. representing more than 10% of the companies' capi-

PP 4,522.3 4,735.5 tal. One of these is a package of Mercedes-Automobil- Holding shares which serve as Cover for the bonds we Other liquid funds issued during the year under review, bearing the right to Cheques, items reccived for collection 405.6 481 .I subscribe to MAH shares. In addition we had Special Bills rediscountable at the Deutsche Bundesbank ...... 6,053.4 5,819.3 holdings of DM 191.7 m. from syndicate transactions. Claims on credit institutions payable Under securities we also include our holdings of 25% on demand ...... 2,976.6 4,644.2 or more in non-banking joint stock companies, which Treasury bills and discountable we regard purely as a financial investment and do not Treasury bonds ...... 248.4 146.6 show as investments in subsidiaries and associated Bonds and dcbt instruments eligible as collateral for Bundesbank advances .. --2,595.2 1,595.3 companies since we do not exert any entrepreneurial in- fluence. Of these holdings of 25% or more of the capital, Totalliquidfun~ls ...... --16,801.5 17,422.0 -- the following had to be reported in accordance with 5 20 Stock Corporation Act: L iabilities Liabilities to credit institutions ...... Bergmann-Elektricitäts-Wcrke Aktiengesellschaft, Berlin Banking liabilities tn other creditors . . Debt instruments ...... Daimler-Benz Aktiengesellschaft, Stuttgart Own acceptances and promissory Hapag-Lloyd Aktiengesellschaft, Hamburg notes in circulation ...... Philipp Holzmann Aktiengesellschaft, Frankfurt (Main) Sundry liabilities ...... Aktiengesellschaft, Essen Pittler Maschinenfabrik Aktiengesellschaft, Langcn (Hessen) End of 1976 End of 1975 Change Volume of credit - in millions of DM - Claims on customers short and medium-term ...... long-term ...... , ......

Discoclnts ...... 7,300.8 Landihgs to credit institutions ...... -3,614.3 Total volume of credit ...... 47,682.0

Schitag Schwäbische Treuhand-Aktiengesellschaft, Claims on customers exceeded DM 30 bn. at the end Stuttgart of the year. Two thirds of the growth of DM 5.8 bn. Süddeutsche Zucker-Aktiengesellschaft, Mannheim (23.1%) was in long-term claims, which rose by DM 3.7 For information on the development of these compa- bn. = 36.7% to DM 13.9 bn. Short and medium-term nies we refer you to their annual reports. credits increased by DM 2.0 bn, = 13.8% to DM 16.9 The holding in Bayerische Elektrizitäts-Werke, Munich, was sold during the year under review. We re- port on the placing of the 29% stake in the capital of Daimler-Benz AG, Stuttgart, which we had taken over with effect from January I, 1976, and on the realisation of the bank's placement scheme, in our Annual Report for 1975. [Total wdlt extended l$.hort and medium-term oleims an non-henk customers All securities were valued as usual according to the Discounts ,L~ng-tetm crsims on non-bank minimum value principle. Billion6 Oustomßr% B bndinrie to oi'adit institutlons

Total credit extended

At the end of the year the volume of credit was DM 41.7 bn., which was DM 7.5 bn. = 21.9% higher than at the end of 1975. After contracting considerably during the first 4 months, lending business picked up in the summer, from June to August. In late autumn the vol- ume then increased more rapidly, so that almost two thirds of the total growth for the year was achieved in the last two months alone. Lendings to credit institutions (not including dis- counts) grew from DM 1.0 bn. to DM 3.6 bn. They are included, along with clearing balances and funds invested, in the Claims on credit institutions which rose altogether by DM 2.7 bn. or 20.3% to DM 16.0 bn. Claims on foreign credit institutions are included in this figure with DM 12,5bn. At balance-sheet date we had made Discounts of DM 7.3 bn. available to customers and banks; that was DM 0.7 bn. or 10.2% rnore than at the end of 1975. bn. Of the long-term claims on non-bank customers at bn.; including credits for building financing, our stan- the end of 1976 DM 7.5 bn. or 54% were due within 4 dardised credit business reached DM 8.2 bn. (+41.5%) years. We passed on funds amounting to DM 1.1 bn., at the end of the year. Details of development In the var- provided mainly by the Kreditanstalt für Wiederaufbau ious types of programmed credit are given on p. 32 of from public lending Programmes for specific purposes, this report. to the borrowers on the terms fixed by the lenders. The diagram based on the categories of borrower As shown by the graph of the development of the used by the Bundesbank and the following table of our credit volume since 1966 the proportion of long-term lendings to non-bank customers according to size show credit to total credit has risen strongly over the past our credit risks to be widely spread in terms of amount years; discounts on the other hand have a comparative- and business sectors. The credits extended to our cus- ly smaller role today than at the beginning of the period tomers were within the reduced limits for large credits reviewed, owing to the wishes of business and industry under 9 13 Banking Law. to consolidate and the restricted rediscount facilities Allowance was made for all discernible risks in lend- with the Deutsche Bundesbank. ing business through individual adjustments and provi- The Programmed Personal Credits included in the sions. For latent risks the prescribed overall adjust- claims on non-bank customers again tose considerably ments were made. in 1976, increasing by DM 1.3 bn. or 26.5% to DM 6.2

Breakdown of Iendings (claims and diswunts) to customers by branch as at December 31,1976

Industry, small trades and handlcrafts 9.4% 14,1% Steel construction, mechanical Trade engineering and vehicle building I 6.5% Electrical engineering, precision end optical goods; production of hardware, musical instruments, 24.7% sports equipment, toys and jewellery Orhrr enterprises 4.6% and Chemical industry and mineral oil pt~bllcauthorities processing 3.6% Leather, textile and clothtng manufacture 5.8% lron and non-ferrous meta1 produotion, foundries and steel shapinl 2.3% Food, beverages and tobacco 2.6%

L Wood, paper end ptinting trades 18.3% 8.1% Prfurrte brrawers Other industries Banque Europeenne de Credit, Brussels Nurnber of credits End of 1976 Euro-Pacific Finance Corporation Ltd., Melbourne Foreign Trade Bank of Iran, Tehran up to DM 10,000 945,697 = 79.6% from DM 10,000 up to DM 100,000 210,980 = 17.8O/0 lndustrial and Mining Development Bank of Iran, Tehran frorn DM 100,000 up to DM 1,000,000 27,759 = 2.3% Korea Developrnent Finance Corporation, Seoul more than DM 1,000,000 ...... 3,766 = 0.3% Societe lvoirienne de Banque, Abidjan 1,188,202 = 100.0% Süddeutsche Vermögensverwaltung GmbH, Frankfurt (Main)

Capital paid up Investments in subsidiaries and associated companies Deutsche Wagnisfinanzierungs-Gesellschaft mbH, Frankfurt (Main) In this itern of the balance sheet we show participa- Hessische Immobilien-Verwaltungs-Gesellschaft mbH, tions in credit institutions which represent the bank's Frankfurt (Main) interests regionally or internationally or supplement our European Arab Holding S.A., Luxembourg business significantly, and participations in administra- tive cornpanies which, as independent auxiliary Purchases operations, relieve the bank of administrative work not Deutsche Centralbodenkredit-AG, Berlin-Colognc of a typical banking nature. In line with the principles Frankfurter Hypothekenbank, Frankfurt (Main) we have followed for rnany years, the inclusion in the Handelsbank in Lübeck, Lübeck balance sheet iri these cases ernphasises the bank's de- International Mexican Bank Ltd., London clared intention of exerting entrepreneurial influence on the individual companies. As business responsibility New establishments goes hand-in-hand with such interests, we bear a pro- Deutsche Gesellschaft für Immobilien- und Anlagen- portionate share in ensuring that these firrns are able to Leasing rnbH, Düsseldorf fulfil their liabilities. Deutsche Bank (U.K.) Finance Ltd., London. The item also includes srnaller participations in the capital of foreign banks and finance companies, espe- In addition, when Deutsche Ueberseeische Bank, cially in developing countries, to which we make capital Berlin-Hamburg, was integrated into our bank we took and advice available - in many cases together with oth- over the remaining shares of that bank from the former er German or international banks. shareholders. Holdings which do not fall into the categories indicat- In Decernber 1976 we purchased a holding of just ed above, and are hence not intended as participations, over 25% in the Handelsbank in Lübeck. e.g. the blocks of shares listed on pp. 52-53, are shown in The shares in the Liquidations-Casse in Hamburg AG, the balance sheet under "Securities" or - if they are not Hamburg, which were previously included under documented in security form - under "Sundry assets". securities, have been transferred to the investments in The Investments in subsidiaries and associated com- subsidiaries and associated companies account. panies are shown in the balance sheet at DM 1,250.2 m., In the year under review after disposing of those which is DM 77.2 m. higher. Additions of DM 95.9 m. are shares in Eurocard Deutschland Internationale Kredit- partly offset by sales of DM 2.0 m. and depreciation of karten-Organisation GmbH, Frankfurt (Main), which had DM 16.7 m. at first been held on a trust basis, we transferred the shares we had shown last year under sundry assets to The additions relate to the following transactions: investments in subsidiaries and associated companies. We acquired further shares in Banco Comercial Capital increases Transatlantico, Barcelona, in exchange for shares of Badische Bank, Karlsruhe Promotora de Edificios Para Oficinas S.A., Barcelona. Europäisch Asiatische Bank AG, Hamburg During the year under review we sold Part of our Lombardkasse AG, Berlin - Frankfurt (Main) holding in European Arab Holding S.A., Luxembourg. Our holding in the Rheinische Kapitalanlage- DM 103.6 m.. DM 42.1 m. of this represents land pur- gesellschaft mbH, Cologne, was sold at the end of chased and DM 61.5 m. is due to new building and con- 1976/beginning of 1977. version projects. Due to a visible fall in value it was necessary to make Depreciation amounts to DM 26.6 m.; this includes depreciations on a number of foreign participations. DM 2.5 m. for extraordinary wear and tear. In addition A list of the bank's investrnents in subsidiaries and we have used DM 39 m. from capital gains ori s,ili:s dur- associated companies is given on pp. 103 to 105. We ing the year under review for special depreciation in ac- comment on the business development and position of cordance with !lj 6b of the lncome Tax Law. the companies included in the consolidated Statement New buildings were erected and occupied in of accounts in our Report of the Group, which also con- Göppingen, Lüneburg and Munich. tains information on the bank's relations with the asso- Office furniture and equipment has risen to DM 225.4 ciated companies. m. following additions of DM 81.1 m. and depreciation of DM 46.3 m. This included DM 13.6 m. for items writ- Fixed assets ten off immediately in accordance with 9 6 subpara. 2 of the lncome Tax Law. The value of Land and buiidings shown in the balance sheet has risen to DM 680.8 m. The additions amount to

Holding company holds at least 25% of:

Allgemeine Verwaltungsgesellschaft für lndustriebeteiligungen rnbH, Munich Metallgesellschaft AG, Frankfurt (Main) - our share 331,l3% -

Corona Beteiligungsgesellschaft mbH, Frankfurt (Main) Continental Gummi-Werke AG, Hanover - our share 331I3% - Phoenix Gummiwerke AG, Hamburg Deutsche Gesellschaft für Anlageverwaltung mbH, Frankfurt (Main) Horten AG, Düsseldorf-Niederkassel - our share 75% - Energie-Verwaltungsgesellschaft rnbH, Düsseldorf Vereinigte Elektrizitätswerke Westfalen AG, Dortmund - our share 25% -

Groga Beteiligungsgesellschaft mbH, Frankfurt (Main) Leonische Drahtwerke AG, - our share 50% - Kistra Beteiligungsgesellschaft mbH, Frankfurt (Main) Hutschenreuther AG, Selb (Bay.) - our share 75% -

Rossma Beteiligungcgesellschaft mbH, Frankfurt (Main) Bavaria Filmkunst GmbH, Munich - our share 60% - Didier-Werke AG, Stella Automobil-Beteiligungsgesellschaft mbH, Frankfurt (Main) Mercedes-Automobil-Holding AG, Frankfurt (Main) - our share 50% -

Stern Automobil-Beteiligungsgesellschaft mbH, Frankfurt (Main) Mercedes-Automobil-Holding AG, Frankfurt (Main) - our share 25% - Other asset items 104,722 Deutsche Bank shares had beerl pledged to the bank and its associated companies as at 31. 12. Equalisation and coveriny clairns on public authorities 1976. fell by DM 24.4 m. to DM 363.5 m. Of this, DM 335.2 m. is made up of equalisation claims and DM 28.3 m. of covering claims in accordance with $ 252 Equalisation Liabilities of Burdens Law and $19 Old Savings Law. The Sundry assets rose by DM 227.6 m. to DM 1.1 18.2 Funds from outside sources m. In this item we mainly show share rights not docu- mented by securities which we do not regard as partici- The funds from outside sources expanded by DM 9.9 pations. bn. = 19.1% in the paSt year, reaching a total of DM The bank holds interests through the holding compa- 62.0 bn. nies mentioned on p. 56, whereby the bank's indirect DM 5.9 bn. of the expansion was due to higher Liabili- share in the third companies indicated exceeds 25% of ties towards credit institutions, whereby the inflow of the company's capital in only one case. For information term deposits from banks was particularly strong on the development of these companies we refer you to (+DM 5.2 bn. - 66.2%). This reflects above all the im- their annual reports. Our shares in Stella Automobil- portance of our international business, which we settle Beteiligungsgesellschaft mbH, Frankfurt (Main), and through our foreign branches and foreign subsidiaries, Stern Automobil-Beteiligungsgesellschaft mbH, Frank- through the ventures established jointly with other EBIC furt (Main), may be mentioned as additions. banks and in dealings with our correspondent banks. The sundry assets also cover gold and silver holdings 77% or DM 14.8 bn. of the total liabilities to credit insti- - including DM 75.6 m. held as cover for gold and silver tutions of DM 19.3 bn. (+43.9%), as at the end of 1976, certificates issued to customers - coins and medallions was to foreign banks. Banks' deposits also include tied and claims which did not arise in current banking busi- funds, especially from the Kreditanstalt für ness. Wiederaufbau, which we passed on under the condi- tions stipulated by the lenders. The Liabilities towards non-bank customers rose by Own shares DM 2.4 bn. = 6.5% to DM 39.8 bn. Whereas demand deposits feil slightly to DM 11.6 bn (- DM 33.9 m.) we As at the end of the year we held 28,100 Own shares increased our term deposits - which we had reduced by with a balance sheet value of DM 7.9 m. (average pur- DM 1.8 bn. in each of the two preceding years - again in chase price DM 279.76); they have been offered to the 1976 by DM 1.4 bn., or 15.6%, to DM 10.5 bn. employees of the bank and its domestic subsidiaries, in The volume of Savings deposits was DM 17.7 bn. the meantime, in accordance with g 71 subpara. 1 No. 2 (+6.3%) at the end of 1976. Savings deposits with a Stock Corporation Act in a fourth staff share scheme. statutory period of notice grew by 8.5%. i.e. more During the year under review we purchased 67,471 rapidly, as in the two previous years, than other forms Deutsche Bank shares at an average price of DM 317.07. of saving (+4.0%) whose share in total savings depo- They were passed on to our employees and the staff of sits declined to 48.2% (previous year 49.2%). the domestic members of our Group at DM 156.- per The graph on p. 58, showing the development of share. non-bank customers' deposits in the past ten years, il- In addition, within the scope of securities dealings lustrates clearly how strongly the importance of sav- which have to be reported in accordance with $ 71 sub- ings deposits has increased for our bank's deposit busi- para. 1 No. 1 Stock Corporation Act, the bank and its as- ness. sociated companies purchased 748,612 Deutsche Bank Although in 1976 savings deposits did not match the shares at current prices, at an average price of DM extraordinary growth of the previous year, total new 301.55, and cold them again at an average price of DM savings of our customers - including securities purchas- 300.90. The sales proceeds remained in the working es with funds from savings accounts - and savings cer- funds. tificate purchases remained high. In 1976 new savings End of 1976 End of 1975 Funds from outside sources -in millions of DM -

Liabilities towsrds credit insti'tutions demand deposits ...... 5,864.9 = 9.5% 5,076.7 = 9.8% term deposits ...... 12,963.4 = 20.9% 7,800.6 = 15.0'Yo costomers' drwings on credits opened at other institutions ...... 456.6 = 0.7% 523.2 = 1.0% 19,284.9 = 31.1% 13,400.5 = 25.8%

Liabilities towards non-bank customers dernand deposits ...... 11,624.8 = 18.8% term deposits ...... 10,548.7 = 17.0% savings deposits ...... 17,654.0 = 28.5%

Debt instrurnents ...... , ...... +. .... 2,844.0 = 4.6% Total funds from outside sources ...... 61,956.4 = 100.0% 52,015.6 = 100.0%

totalled DM 3.6 bn. after DM 5.0 bn. in 1975; the propor- Non-bank customers' deposits 196&1876 tion saved through securities jumped from 31% to al- most two thirds (DM 2.3 bn.) of the savings volume. The bank's own Debt instruments in circulation Total deposi~ -Term deposits amounted to DM 2.8 bn. on balance sheet date, and had *****er* Demand deposits Savings Ullions deposits thus more than doubled as compared with the previous of DM year. Besides bonds which served to refinance our long- term fixed-interest credits, having congruent interest rates and maturities, we also show the bonds which were issued in the past year bearing a subscription right to Mercedes-Automobil-Holding AG Shares under this item at DM 273.6 m.

Provisions for special purposes

Provisions for pensions are shown at the actuarial Part value of DM 805.4 m. The DM 63.8 m. = 8.6% in- crease as compared with the previous year includes the Part value for pension liabilities towards former employ- ees of Deutsche Ueberseeische Bank, which we as- sumed in the past year in connection with the integra- rion of that company. Other provisions amount to DM 493.3 m. In addition to provisions for uncertain liabilities and for taxes, the item also includes the portion of the prescribed overall adjustment which cannot be offset against assets. Other liability items adjustrnents, was due for release this year, and the itern is now shown at DM 27.7 rn. The remainder will have to Sundry liabilities total DM 24.0 m. In this itern we be dissolved in the next two business years, affecting show liabilities which have not arisen within the scope taxes accordingly. of banking business as such, including wage and church tax and social security contributions payable. The Special items including reserves are shown at a Comments total of DM 46.0 rn. The special itern in accordance with the Tax Lew regarding Developing Counrries stands at Endorsement liabilities on rediscounted bills of ex- DM 14.3 rn.. DM 4.0 rn. of capital gains on sales during Change totalled DM 436.9 rn. as cornpared with DM the year under review has been allocated to the special 124.8 m. a year previously. Further bills valued at DM itern in accordance with § 6b lncorne Tax Law, and DM 146.2 rn. were in the process of collection. 39.0 rn. has been used for special depreciation on land Liabilities arising out of guarantees of various kinds and buildings. and warranty contracts rose, owing to the expansion in At least one third of the special itern arnounting to international business and the increased activities of DM 41.5 rn., which had been forrned in 1974 in accord- Gerrnan construction firrns abroad, by DM 4.5 bn. ance with the administrative tax regulation On overall (37.9%) to DM 16.4 bn.

Breakdown of savings deposits according to groups of savers as at Deeember 31,1976

37.6% 16.5% Salarlecl employess, oivil ssrvants Housewives

8.6% Othn pwmnot sei$- crmplaysd and those who have nat sntpited thefr profeasion Obligations to repurchase items assigned en pension In accordance with § 5 subpara. 10 of the Statute of amounted to DM 1.2 bn., compared with DM 1.6 bn. in the Deposit lnsurance Fund we have undenaken to in- the preceding year. This figure includes transactions demnify the Bundesverband deutscher Banken e. V. for with banks at DM 0.9 bn. The iterns assigned en pen- any losses which may be incurred through rneasures in sion are DM 0.4 bn. bonds and debt instruments and favour of credit institutions in which we have a majority DM 0.8 bn. notes and registered debt instruments. holding. Liabilities for possible calls on shares not fully paid We bear a statutory share of liability ($322 Stock Cor- up in public and private limited cornpanies were DM poration Act) for the obligations of the Deutsche Ueber- 34.6 m. Our share of liability for third-party obligations seeische Bank, now integrated into our bank. for possible calls in accordance with 5 24 "GmbH" Act total DM 38.7 rn. In respect of the participation in the Li- quiditäts-Konsortialbank GmbH, Frankfurt (Main), there is an obligation to pay further capital of up to DM 44.6 m.; in addition, we have assumed a contingent Iiability to meet the capital obligations of other Partners also be- longing to the Bundesverband deutscher Banken e. V.

Profit and Loss Account

Total annual savings Earnings on the volurne of business in billions of DM

-.L . Growth of the average volurne of business accelerat- B Savln~in securitiegv Saving (pwrcheses lass sales) ceftlficaree ed again. The rate of growth was 14.3% and was hence Sevings deposits lnterest an considerably above the previous year's rate of 5%. But lin~svrnentsIeas withdnwaPsr - savinas demit! the increase in earnings due to the latge growth in vol- ume only just compensated the decline resulting frorn the narrower interest margin. The continued fall in the interest level rnade itself most noticeable in lending conditions. lnterest rates for term and savings deposits, on the other hand, were not reduced by as much. This development is reflected in the fall in intetest receipts from lending and money mar- ket transactions by DM 88.3 rn. = 2.7%, while almost the Same amount was required for interest expenditure as in the previous year. Current receipts from fixed-in- terest securities and debt register clairns rose by DM 51.4 m., due mainly to the purchase of public authority medium-term notes, As a result of increased holdings and higher dividends, receipts from shares and invest- rnents in subsidiaries and associated companies rose by DM 34,3 m. to DM 191.9 m.;as in the previous year, most of them enjoy the concessions granted on hold- ings of over 25%. The total interest surplus amounted to DM 1,6Q6.2 rn.; that was DM 1.2 m. less than in the previous year. Un- like the two preceding years it no longer covered staff and material expenditure. Earnings on the volurne of business developed as fol- and adjustrnents on claims and securities and alloca- lows: tions to provisions for possible loan losses. Thus, it was no longer necessary to show the item Depreciation and adjustments on claims and securities and ellocations to provisions for possible loan losses (1976: DM 49.1 rn.), Adequate allowance was made for risks in the lend- ing business by the formation of appropriate provisions. Interest and similar receipts from lending The amount required was lower than in 1975. The high- and money market transactions ...... 3,169.0 3,257.3 er volurne of credit caused us to raise the overall adjust- Current receipts from securities, debr reg- ment by DM 35.5 m.. DM 13.8 m. of the special item In- ister clairns, and investrnents in subsidi- aries and associated companies ...... --383.4 297.7 cluding reserves had to 8e released in accordance with 3,552.4 3,555.0 the administrative taxation regulations on overall ad- justrnents. Interest and similar expenses ...... , 1,856.2 1,857.6 Depreciation on securities was more than offset by Earnings on the voluma of business (hterest surpius) ...... , ...... 1,696.2 1,697.4 considerably higher gains from securities salee. In ad- -- dition, earnings on securities dealings increased further. Earnings from foreign exchange and gold dealings were once again satisfactory. Earnings on services

Growth in Commissions and other receipts from serv- Staff and material oosts in relatlun to interest ice transactions slowed down. The increase achieved in surnlus and sumlus in mrnmiirsians the year under review was DM 22.1 rn., after DM 67.5 rn, 1 a year earlier. This is prirnarily due to the fact that the Staff and materiel costo contribution frorn the securities sector was lower than lnterest surplus in 1975 owing to the decline in share business. Interna- Surplus In commiseions tional business on the other hand brought higher re- I ceipts as a result of strong expansion in the volurne of foreign trade. This sector produced the greater Part of the increase in earnings on service transactions. As the nurnber of transactions increased once again there was also growth in cornrnissions in payrnents business. After deduction of the expenditure on cornrnissions, service transactions produced a surplus which was up DM 20.0 rn. - 3.9% to DM 534.8 m. Since staff and rna- terial expenditure rose by DM 129.1 m. = 7.8%, the pro- portion covered by the commission surplus fell from 31.3% to 30.1%.

Other receipts

The Other receipts frorn ordinary and extraordinary business are shown at DM 347.9 m. after DM 170.2 rn. in the previous year. They include the surplus left over aft- er Part of the earnings on securities dealings, earnings frorn securities sales, receipts from clairns written off and from released adjustrnents and provisions for pos- sible loan losses had been offset against depreciation Staff and material expenditure 23.3 m. to the Deposit Insurance Fund of the Bundesver- band deutscher Banken, including the special payment Staff expenses (salaries and wages, social security in respect of Pfalz-Kredit-Bank, and the provision for contributions, expenditure on retirement pensions and 1976 holidays not yet taken. Depreciation required on other benefits) amounted to DM 1,384.4 m., which was securities held through holding companies is also in- DM 69.9 m = 5.3% more than in the previous year. The cluded in this item. increase in the provisions for pensions according to the Total emoluments of the Board of Managing Directors Part value principle which had been completed in 1975 amount to DM 8,052,555.23. Former members of the helped to keep expenditure down in the year under re- Board of Managing Directors of Deutsche Bank AG or view. In addition the total average number of persons their surviving dependents received payments aggre- employed during the year did not rise any further (1975: gating DM 2,385,265.40. + 1.5%). The pay negotiations in 1976 brought an in- The Supervisory Board received DM 306,450.- as crease of 5.4% in agreed-scale salaries as from March 1 fixed emoluments; the Supervisory Board's dividend-re- (1975: +6.9%). Salaries not covered by the agreed lated payments amounted to DM 770,975.27. Members scale were raised accordingly. of the Advisory Board received DM 359,720.- and the Wages and salaries increased by DM 68.9 rn. = rnembers of the Regional Advisory Councils DM 6.9%. Once again social security contributions rose at a 1,732,475.-. relatively stronger Pace by 16.1% ; they now account for 10.5% of total staff expenditure. Expenditure on retire- ment pensions and other benefits fell by DM 19.2 m. = 10.3%. Taxes Affected by higher prices, Material expenditure for the banking business continued to rise, showing an in- The operating result, i.e. the surplus on current crease of DM 59.2 m. = 17.8%. Expenditure on mainte- business, declined by 12.3%. Owing to the lower nance and running costs for bank premises rose partic- amount required to Cover extraordinary expenditure, ularly strongly. Continued rationalisation - especially this decline was not merely offset, pre-tax profits were through terrninals - was reflected in higher rental fees even irnproved. for data processing Systems. Taxes on income, earnings andproperty rose DM 19.0 m. to DM 279.0 m.; total taxes - including Other taxes (DM 13.8 m.) - are DM 292.8 m. (1975: DM 279.4 m.).

Depreciation

DM 111.9 m. (1975: DM 106.7 m.) was needed for De- Proposed appropriation of profits preciation on land and buildings, and on office furniture and equipment. Under $ 6b of the lncome Tax Law it The profit and loss account shows: was possible to use DM 39.0 m. from earnings on secur- ities for additional depreciation. Depreciation on investments in subsidiaries and as- Receipts ...... DM 4,495,249,045.40 sociated companies refers to value adjustments on for- Expenses ...... DM 4,215,249,045.40 eign participations, due mainly to alterations in currency Year's net earnings ...... DM 280,000,000.- parities. Allocations to published reserves ...... DM 100,000,000.- Disposable profit ...... DM 180,000,000.-

Other expenses It will be proposed to the shareholders that a divi- The Other expenses amounted to DM 130.7 m. This dend of DM 10.- per share of DM 50.- par value, i.e. DM included, amongst other things, our contribution of DM 180.0 m., be paid on the capital of DM 900 m. Capital and reserves Capital ...... DM 900.0 rn. Published reserves DM 1,085.0 rn. We have allocated DM 100.0 m. (1975: DM 101 m.) of a) statutory reserve fund ...... b) other reserves ...... DM 1,115.0 rn. the Year's net earnings to published reserves. The Total ...... DM 3,100.0 in. bank's own funds thus total DM 3.1 bn.; they are rnade up as follows:

Frankfurt (Main). March 1977

The Board of Managing Directors New start 25 years ago - -

P

In 1977 Deutsche Bank can look back upon a special jubilee period. With effect from January 1,1952 three successor banks Development of the balance sheet total 1.1.1952-31.12.1976 were forrned frorn the old Deutsche Bank. That was the first phase in the rearnalgarnation of the bank, which had been split up by the Occupation Forces into ten regional institutions. In practice, that meant a new start for Deutsche Bank. Five years later the way was also cleared for legal reunification. The opening balance shset of the 3 suocessor institutions as at January 1,1952 gave a cornbined balance sheet total of DM 3.8 bn. In 1964 ir was DM 14.8 bn. and at the end of the quar- ter-century DM 67.4 bn. During the sarne period a Group was built up, alongside the parent company, with a balance sheet total of DM 106.2 bn. One of the rnost irnportant tasks was to expand the branch network of the bank again and to rnake it more closely knit, in line with customers' requirements. In 1952 the successor insti- tutions had 259 offices in the Federal Territory. At the end of 1976 there were 1,132 dornestic branches. The range of Services was expanded steadily, and, step by step, the bank took up new lines of business. How strongly the Deutsche Bank is today anchored not only in the corporate sec- tor but also in private customer business is shown by the DM 18 bn. held in aavings deposits as at the end of 1976. At the be- ginning of 1952 they only arnounted to DM 197 rn. The bank's traditional position as a leader in international business was regained and expanded. After the war all the for- eign branches had been expropriated. At the end of 1976 the bank had 69 bases in 45 countries,

Developrnent of the volume of credit Development of non-bank customers' deposits 1.1.1962-31.12.1976 - I 1.1.1952-31.12.1976 m hort and medium-term cleims on non-bank customers Demand deposits ~ng-termclaims on non-bank customers Term depmits -iscounts Cauings deposlts -Lendings to credit institutions Billionii of DM 40 I 1 I 30 I I 20

10

I End of 1, j~i$~„miI~l101)0j1971 /lgoI I Published Capital and Capital Reserves Reserves Growth of Capital and Reserves Total D M DM

Jariiiary 1. 1952 (openincj balaricc sticct) ...... Allucation from tlie Coiivcrsiriri Accoiint and frorri ttic riet earnings 1952-1956 ...... Capital iricrease: 1955 (1 for 2 iit par) ...... Capital increase: 1956 (1 for 3 at ~iar) ...... Decciritic!r 31. 1956 ...... Allocation frorri the riet earninys 1957 ...... Dccernber 31. 1957 ...... Ca~iitüliricrcast!: 1958 (1 for 4 at par) ...... Allocatiori frorri thc riet earnin~gs1958 ...... Deccnitier 31. 1958 ...... Allocatiriri frorri the rit!t earninys 1959 ...... Dccerril-ier 31. 1959 ...... Allocatinri frorri the net earnings 1960 ...... Dccerriher 31. 1960 ...... Capital iricreasc: 1961 (1 for 5 at par) ...... Allucatioti frotri ttic riet earninqs 1961 ...... Deceiiiticr 31. 1961 ...... Allocatiori froin Llic riet carriirigs 1962 ...... Deceriibcr 31. 1962 ...... Allocatioti frorn ttic riet carnirigs 1963 ...... Deccriibcr 31. 1963 ...... Allucatiuri frorii ttic rict t?arriinqs 1964 ...... Dccerriher 31 . 1964 ...... Capital iricrcase: 1965 (1 for 6 at par) ...... Allocatiori frorri the net earninys 1965 ...... De~~mb~r31 . 1965 ...... Caliital increase: 1966 (1 for 7 at par) ...... Allocation frnrri the net earnincjs 1966 ...... Deccrriber 31 . 1966 ...... Allocatiori Irorri the riet narnings 1967 ...... Dccerriber 31. 1967 ...... Capital iricrcasc: 1968 (1 for !J at 250) ...... Allocatiori frcirii ttic riet earnings 1968 ...... Deccriiher 31 . 1968 ...... Allocatiori frrini ttic rict earnings 1969 ...... Dccerriber 31. 1969 ...... Allocatiori frotri ttic riet earnings 1970 ...... 30.000.000.- 30.000.000.- December 31. 1970 ...... 480.000.000.- 880.000.000 . 1.360.000.000.- Capitirl iricresse: 1971 (I foi 6 at 280) ...... 80.000.000..- 144.000.000.- 224,000,000.- Allocatiori Irnrri the net earninys 1971 ...... 40.000.000.- 40,000,000.- Deccrriher 31. 1971 ...... 560.000.000..- 1.064.000.000.- 1.624.000.000.- Capital iricrcasc: 1972 (1 tor 7 at 300) ...... 80.000.000.- 160.000.000.- ?40.000.000.- Allucatiori frorri ttie riet earnings 1972 ...... , .... , 50.000.000.- 50,000,000.- Decernticr 31. 1972 ...... Capital increase: 1973 (I for 8 at 300) ...... Allocatioii froni ihe iiet carriirigs 1973 ...... 25.000.000.- 25.000.000.- Decetribcr 31. 1973 ...... 720.000.000.- 1.459.000.000.- 2.179.000.000.-.. Allucatiori from the net earnitigs 1974 ...... 90.000.000 .... 90.000.000.- Dcccrrilicr 31. 1974 ...... 720.000. 000 - 1.549.000.000.- 2.269.000.000.- Capital iricrease: 1975 (I for 4 at 350) ...... 180.000.000.- 450.000.000.- ö30,000,000.- Allocation froni the riet eai-nings 1975 ...... 101.000.000 . - 101.000.000.- Ut!ccirilicr 31. 1975 ...... 900.000.000 . -- 1.100.000.000.- 3.000.000.000 . . Allocatioii from the net eartiiriris 1976 ...... 100.000.000.- 100.000.000.-

Development of Reserves

Publishcri rcscrves as peropeniny balaticc sheet of 1 . 1. 1952') ...... 40.500.000 . . Allocatiori frorri riet eai-nings and ftoiii the Corivcrsiuri Accourit ') ...... 1.1 25.500.000.- Premiiimfrom caoital iricreases ...... 1,034.000.000.- Total published reserves ...... 2.200.000.000.-.

') Allocatioris frurn the Conversion Accoiint total DM 41,766,357.28. Report of the Supervisory Board

At the Supervisory Board meetings last year, and in Ordinary General Meeting, have examined the Annuai numerous individual discussions, we obtained detailed Statement of Accounts, the Report of the Board of Man- reports concerning the bank's situation and the basic aging Directors and the accounts and have found these questions of business policy, and debated these togeth- to be in conformity with the books, which were properly er with the Board of Managing Directors. Besides the kept, and with legal requirements. We accept the Re- balance sheet arid earninys account, the rnonetary and port of the Auditors. currency situation, the international issuiny business, Furthermore, we have ourselves examined the State- the bank's business policy abroad, the increasing use of ment of Accounts as of December 31, 1976, tlie pro- electronic data processing and the further development posed appropriation of the profits and the Report of the of the bank's range of services were discussed. The Board of Managing Directors. We do not raise any economic situation was the subject of detailed reports objections. and discussion. We also examined important individual The Consolidated Annual Statement of Accounts, the business transactions and dealt with those matters sub- Report of the Group and the Report of the Auditors of mitted to us for approval iri accordance with legal re- tlie Consolidated Annual Accounts have been submitted quirements and the bank's Articles of Association. to the Supervisory Board. Questions of staff policy were also disciissed by the Sii- The Annual Statement of Accounts drawn up by the pervisory Board. Board of Managing Directors has been approved by us The Credit Committee of the Supervisory Board called and has thus been established. We agree to the pro- for reports to be given at its meetings of all major loans posed appropriation of profits. and those entailing increased risks in order to discuss At the meeting of the Supervisory Board on January thcm with thc Board of Mariaging Directors. 25, 1977, we appointed Herr and Dr. Her- The Treuverkehr AG Wirtschaftsprüfungsgesellschaft bert Zapp as Deputy Members of the Board of Manag- - Steuerberatungsgesellschaft, Frankfurt (Main), who ing Directors. Both gentlemen were previously Assist- were Chosen as auditors of the annual accounts by the ant General Managers of the bank.

Frankfurt (Main), March 1977

The Supervisory Board

Chairman Annual Balance Sheet

as of December 31,1976

Profit and Loss Account

for the period frorn January 1 to December 31,1976

The Growth of the Balance Sheet

from January 1, 1952 until December 31, 1976 Assets Deutsche Bank Aklieriqeseiischaft 31. 12.1975 DM D M in DM 1,000 Cash in hand ...... 301,696,630.41 309,657 Balances with the Deiitsche Bundesbank ...... 4,194.390.370.06 4,406,489 Balarices on postal cheque accounts ...... 26,236,519.39 19,392 Cheques on other banks, rnatured bonds, interest and dividend Coupons, ünd iteiiis received for collection ...... 405,655,591.02 481,148 Bills discounted ...... 6,625,636,772.98 6,278,824 including: a) rcdiscountablc at the Deiitsclie Bundcsbarik . DM 6,053,399,428.41 ti) own drawings ...... DM 19,763,131.76

Claims on credit institutions a) payable on deriiand ...... 2,976,642,324.81 4,644,172 ti) with ayreed lifc, or subject to agreed period of notice. of ha) less rhari three rnonths ...... 5,186,591,039.07 1,742,993 bh) at least three rrionths, biit less ttian four ycars ...... 5,947,520,051.88 5,866,713 hc) four years or longer ...... 1,861,838.014.36 13,273,5711,019,681 Treasiiry bills arid discountableTreasury bonds 15,972,591,430.12 CI ;I) of tlie Fedcrill Rcpublic and the Larider ...... 239.457.638.89 146,583 h) others ...... 8,920.768.53 Bonds and debt iristrurncrits 248,378,407.42 E4146,583 a) with a lifeof up tofour ycars aa) of the Federal Republic and the Laiider .. DM 1,607,588,90356 ab) of credit institutioris ...... DM 80,441,089.- ac) others ...... DM 7.917.50 1,688,037.910.06 860,005 including: eligible as collatcral for Bundesbank advaiices DM 1,682.548.090.15 b) with a life uf riiorc than four years tia) of the Federal Rcpublic and the Länder .. DM 250,821,346.23 bb) of credit institutions ...... DM 885,307,898.07 bc) others ...... DM 273,353,370.78 1,409,482.615.08 1,167,150 incliiding: 3,097,520,525.14 2,027.1 55 eligible as collateral for Bundesbank advances DM 972,668,614.12

Sccurities, so far as they have not to be iticluded iri othsr iterns 1 a) shares niarketable on a stock exchange arid investment fund certificatcs 1,819,313,167.68 1,496,695 h) other securities ...... 56,171,637.59 EI1,529,89733.202 incliiding: holdings of rnore tlian orie tcrith of 1.875.484.805.27 ttie shares in a joint stock corporatiori or niin- iny cornpany, excludiny investinctits iri suh- sidiaries arid associütsd cornpanies ...... DM 1,338,974,854.90 Claims on custorners witli agrccd life. or subject to agreed per~odof noticc, of a) less thanfoiiryears ...... 16,i03,310,347.61 14,859,491 b) four years or longer ...... 13,863,581,969.02 I10,142,897 includitig: 30,766,892,316.63 25,002.388 ba) seciired by riiortgages oii real estatc .... DM 1,201.669.600.04 bh) communal loaris ...... DM 360.273.446.75 diic in Iess thari four years ...... DM 7,493,047,000.- Equalisatiori arid covering clainis ori Fedcral and Lander accllioritics under the Ciirrency Reforni Laws ...... 363.495.527.99 387,929 Loans ori a trust basis at third party risk ...... 199,003,352.11 71,767

Irivcstrnentsinsubsicliarics and associated companics ...... 1,250.164,300.- 1,172,978 incliidiny: in crcdit institutions ...... DM 1,090,145,000.- Land and buildiiiys ...... 680,755,100.- 642,786 Office furniture and eqliipment ...... 225,421,300. 190,555 Own shares ...... 7,861,254.- - nominal arnount: ...... DM 1,405,000.- Sundry asscts ...... 1,118,706,934.93 890,595 Transitory items ...... 1,979,476.25 7,009

Total Asseis 67,361,370,613.72 56,838,723

Thc assets arid the rights uf rccourse in respect of the liabilities stiown below the liabilities sidc iriclude ai clairiis on associated cornpanies ...... 1,971,851.797.95 2,520,740 ti) Claims which arisc trorn credits fallirig iinder Article 15,paragraph 1, iterns 1 to 6, and parriyraph 2, of ttic Banking Law, so far as tliey are not showii in a) ...... 515,361,491.60 405,383 The Growth of the Balance Sheet until December 31. 1976

-in rnillions of DM .

31 . 12. 31 12 31 . 12. 31 . 12. 31. 12. 31 . 12 . 1976 1975 1974 1973 1972 1971 Assets

Cash. balances witti Deutsche Bundesbank and on postal cheque accounts ...... 4. 522 4. 735 5. 183 6. 428 5. 138 3. 717 Bills discounted ...... 6.626 6. 279 4. 742 3. 457 3. 743 3. 877 Claims on credit institutions ...... 15.973 13. 274 11. 066 8. 143 5. 911 5. 450

Treasury bills ancl discountable Treasury bonds .... 248 147 - P 249 725 Bonds and debt instrurnents ...... 3. 098 2. 027 1. 466 1. 258 1. 272 1. 058 Securities. so far as they have not to be included in other iterns ...... 1. 875 1. 530 1. 123 1. 106 1. 148 1. 147 Claims on custorners ...... 30. 767 25. 002 23. 294 22. 746 19. 823 16. 824 with agreed life. or subject to agreed period of notice. of a) less than four years ...... 14. 452 b) four years and longer ...... rl8. 294 Equalisation and covering claims on Federal and Län- der authorities ...... 363 388 402 42 2 443 462 Loans on a trust basis ...... 199 72 6 1 64 105 71 Investments in subsidiaries and associated cornpanies 1.250 1. 173 1. 051 900 773 590 Land and buildings ...... 681 643 57 5 457 389 332 Office furniture and equipment ...... 225 191 169 159 142 123 Other assets ...... 1. 534 1. 378 1.201 1. 124 1. 098 812 Balancc sheet total 67. 361 56. 839 50. 333 46. 264 40. 234 35. 188

Liabilities

Liabilities to credit institutioris ...... 19.285 Banking liabilities to other creditors ...... 39. 828 including: term deposits ...... savings deposits ...... 1 17.654 ( Debt instruments ...... 2.844 Own acceptances and prornissory notcs in circulatiori 140 Loans on a trust basis ...... 199 Provisions for special purposes ...... 1.298 1. 131 a) for pensions ...... 805 b) others ...... 1 493 1 1 389 I L Capital ...... 900 900 Published reserves ...... 2. 200 2. 100 a) statutory reserve furid ...... b) other reserves (voluntary reserve fund) ...... 1 1. 115 1 1 1.015 1 Other liabilities ...... 487 419 Disposable profit ... Balance sheet total 67.361 56. 839 50. 333 46. 264 40. 234 35. 188

Endorsernent liabilities on rediscounted bills of exchange ...... 437 125 502 71 5 1. 432 780 Liabilities arising from guarantees of various kinds and warranty contracts ...... 16.445 11. 927 9.007 6. 081 4. 406 4. 387

Year's net earnings ...... 280 281 2 34 155 158 141 Allocations to published reserves ...... 100 101 90 25 50 40 Disposable profit ...... 180 180 144 130 108 101 Dividend in DM per share ...... 10.. 10.. 10.- 9.- 9.- 9.- Dividend in % ...... (20%) (20%) (20%) (18%) (18% ) (18%)

*) iricluding reccipts Iroin the oppreciatiiili in valiie ol riffice furnitiire and equipmcnt ol DM 70 11) *'\ iticluding receipts from the appreciation in value af land und buildinys of DM 35 ni. for the period from January 1 to December 31, 1976 Receipts 1975 D M D M in DM 1,000 lnterest and sirriilar rcceipts frorn lending arid rrioney market trarisactioiis I 1 3,16Yr007,177.46 3,257,273 Currerii receipts from a) fixcd-iriierest securities arid debi register clairris ...... b) othcr securities ...... C) investnients in subsidiaries and associated cornpanies ......

Comrnissions arid othcrrnceiptsfrorn serviceiransactions ...... I 1 '154,321,54679 532.189 Other receipts, including those fr~riiihe writing back of provisions for possi- ble loan losses ...... Receipts from profit poolirig ayreemnnts, antl froin agreements for transfer and for partial traiisferof profits ...... Rcceipts froni Llie writing hack of provisions for special purposes, so far üs they have not to be shown under "Other rcceipts" ...... Receiptsfrom thc writirig back of Special items including reservcs ......

loial Reccipts 4,495,249,045.40 4,320,204

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

Frankfuri (Main), March 22, 1977

Treuverkehr AG Wirtschaftsprüfungsgesellschaft Steuerberatungsgesellschaft

Dr. Nebendorf Fandre

Wirtschaftsprüfer Wirtschaftsprüfer (Chartered Accountant) (Chartered Accountant) Expenses Profit and I-oss Account

lntercst and siiiiilar expciises ...... 1 1,856.1 76,044 30 1,857,629 Commissions anrj sirriilarcxpcrlses iri resliectof servicetransactioris ...... I 19,519,600.87 17,431 Dcprcciatiori atld adicisiments on claims arid sccuriiics, aricl allocations to provisioiisforpossitlleloanlosses ...... Salaries arid wages ...... Social seci~ritycontrihutions ...... Expenditure on retirerricrit perisioris aiid other henefits ...... Material exlienditiirefor the Ii;inkirig busiriess ...... Depreciation and odjustmerits ori laricl ancl hiiilclings, anrl on oflicc luriiiiure aricl eqiiilirnerit ...... Deprecialinri arid adjiisiments on investments iri subsicli~ricsaiicl associateri corripanies ...... Taxes a) on income, earnings anti property ...... t~)olticrs ......

Allocations to special iterris iricludirig rcserves ...... I I 11,466,645.51 1,785 Other experises ...... Year's net earnings I I Total Expenses 4,495,249,045.40 4,320,204

Year's net earnings ...... Allocations froni ttie year's net earriirigs io ~iiiblishedreserves a) ro tlie statutory reserve fund ...... b] io other rescrves (voli~ntaryrescrvc furid) ......

In the year under review tlie Bank effected payrnent of DM 84,899,569.49 representing pensions and contributions to the Beamtenversicherungsverein des Deutschen Bank- und Bankiergewerbes (a. G.), Berlin. The payments to be effec- ted in the next five years will probably reach 110%, 122%, 138%, 150% and 167% of the abovementioned amount.

Frankfurt (Main), March 1977

Deutsche Bank Aktiengesellschaft

The Board of Managing Directors

Burgard Christians Ehret Guth

Herrhausen van Hooven Kleffel Leibkutsch

Mertin Thierbach Kopper Zapp Balance Sheet as of December 31,1976 Liabilities

Liabilities to credit institutions a) payable on demand ...... b) with agreed life, or subjeci 10 agrecd pcriod of notice, of ba) less than three montlis ...... bb) at least three months. but less than foiir years . . hc) four years or longer ...... including: due in less than four ycars ...... DM 743,457.362.16 C) customcrs' drawinqs on credits opened at other institutioiis ......

Banking liabilities to other creditors a) payable on demand ...... b) with agreed life,or subjcct to agreed period of iioiice,of ba) Icss than three months ...... 7,696,554,093.38 bb) at least three months, but less than four years . . 2,071.150.397.72 hc) four years or longcr ...... 780,982,099.1 1 including: duc in lcss than four vears ...... DM 701,568.977.04 C) savingsdeposits ca) subject to legal period of noticc ...... cb) others ......

Debt iristruinents witti a life of a) up to four years ...... b) more than four years ...... including: due in less than foiir years ...... DM 1,100,000,000 -- Own acceptances and promissory notes in circulatiori .. Loans on a trust basis at third party risk .... Provisions for special purposcs a) for pensions ...... b) others ......

Sundry liabilities ...... Franz Urhig and Oscar Schlitter Endowment assets of the Eridownieiit ...... less irivesttneiits in securities ......

Transitory iterns ...... Special items including reserves ai in accordance with the Tax Law regarding Developing Countries ...... b) iti accordance with Article Gb of tlie lncomc Tax LJW C) in accordance witli tlie tax regulatioti regarding overall adjustments ......

Capital ...... Publislied reserves a) statutory reservefund ...... b) other reserves (voluntary reservefund) ...... allocation frorn tlie year's net earniiigs ......

Disposable protii ......

I I Total Liabilitics 67,361,370,613.72 56,838,723

Endorsement liabilities on rediscounted bills of exchange ...... 436,872,431.43 124.81 5 Liabilities arising from guarantees of varioiis kirids and Wdrrality coritracls isee also page 59 of thc Annual Report) ...... Obligations to repurcliase items assigned en pensioti. so far as these obligations have iioi io be shown on the liabilities side ...... Savings premiiims under the Savings Premium Law ...... Comprised among ihe liabiliiies are those iincliiding those shown below the balance sheei) to associated companies ...... -uritil 31. 12. 1967 ofter ridjiistineni 10 thr ncw prcscribed furiri Report of the Group Deutsche Bank Aktiengesellschaft for 1976 Balance shwt struoture of tho Doutsch~Bank Qroup ar of 81.12,1976

I

. Cash reserve I 1, lterns received for collectlon

I i I Bills - 28.8 Liabllitles to credit Instltutbns I

Claims on credit Ii 8. , institutions f

Non-bank customers' sight and term deposits

claims on non-bank cuslto C

I'. .- ' E

I ,,I 8 . - ' . ,-I Savings deposits

Long-term cleirns I on non-bank customers

- hbt Instruments end long-ternl mortgage I bank liabilities ~ong-term bank lend~ *

Rsmaintng liabilitles J I - - Remaining assets Own funds Balance sheet total DM 108.2 bn. DM 106.2 bn.

- - *A nn - ! - I I'i 1, , --W- , ;'irdLq V

Report of the Group for 1976

The structure of our volume of business at the end of 1976 and the financing of the increased volume during The Deutsche Bank Group's balance sheet total rose the last five years are shown in the two diagrams. Long- in the past year by DM 13.7 bn., or 15,0%, to DM 105.2 term claims on customers together with long-term bn. at the end of 1976, The volume of business was DM mortgage bank lendings rose by DM 21.5 bn. (or 118% ), 105.0 bn. (DM 91.7 bn. at the end of 1975). i.e. almost 40% of the total funds recelved. In the Same With growth of DM 55.5 bn. the consolidated balance period the total of the Group's mortgage bonds and sheet total has more than doubled since the end of debt instruments in circulation increased by DM 14.1 1971. Deutsche Bank AG acaounted for more than one bn, (or 126%); savings deposits grew by DM 8.8 bn. (or half of this growth. A major contribution was also made 82% 1. by the two mortgcrge banks and the Compagnie Finan- At the end of 1976 thd Group's staff numbered 40,772 cihre de la Deutsche Bank AG, Luxembourg. Our Luxem- persons; Deutsche Bank AG accounted for 89.1%. The bourg subsidiary was included in the consolidated ac- Group banks maintaih a total of 1,281 offices, 17 of Counts in 1974 and, since then, its business volume has which are located abroad. expanded rapidly.

Sabings deposits &$ Consolidated companies

The consolidated annual Statement of accounts per Decernber 31, 1976, includes, as last year, rhe results of the follow- ing cornpanies in addition to Deutsche Bank Aktiengesellschaft:

Proportion of capital held Berliner Disconto Bank Aktiengesellschaft, Berlin ...... 100 % Cornpagnie Financikre de la Deutsche Bank AG, Luxembourg ...... 99.9% Deutsche Centralbodenkredit-Aktiengesellschaft, Berlin-Cologne ...... 77.6% Deutsche Gesellschaft für Fondsverwaltung rnbH, Frankfurt (Main) ...... 100 % Deutsche Kreditbank für Baufinanzierung AG, Cologne ...... 75 % Deutsche Gesellschaft für Immobilien-Leasing mbH, Düsseldorf ...... 75 % Deutsche Ueberseeische Bank, Berlin-Harnburg ...... 100 % Frankfurter Hypothekenbank, Frankfurt (Main) ...... 88.1 % Gefa Gesellschaft für Absatzfinanzierung mbH, Wuppertal ...... 100 % Efgee Gesellschaft für Einkaufs-Finanzierung rnbH, Düsseldorf ...... 100 % Gefa-Leasing GmbH, Wuppertal ...... 100 % Saarländische Kreditbank Aktiengesellschaft, Saarbrücken ...... 68.9% Hessische Immobilien-Verwaltungs-Gesellschaft mbH, Frankfurt (Main) ...... 100 % Matura Vermögensverwaltung rnbH, Düsseldorf ...... 100 % Süddeutsche Verrnögensverwaltung GmbH, Frankfurt (Main) ...... 100 % Elektro-Export-Gesellschaft mbH, Nuremberg ...... 100 % Trinitas Verrnögencverwältung GmbH, Frankfurt (Main) ...... 100 %

The Group's Course of business in the past year was Ueberseeische Bank, which was integrated into substantially influenced by dev'eloprnents in Deutsche Deutsche Bank AG, the bank is represented by 72 off- Bank AG, which accounts for 61% of the Group's bal- ices in Berlin. ance sheet total (before consolidation); 21% is due to Arnongst the propertiec leased from Trinitas Vermö- the two mortgage banks, 9% to Compagnie Financiere gensverwaltung GmbH, Frankfurt (Main), are the bank's de la Deutsche Bank AG and 8% to other credit ifistitu- premises in Otto-Suhr-Allee 6/16, Berlin 10. tions: less than 1% is attributable to the leasing, man- aging and finance cornpanies. Compagnie Financiere de Ja Deutsche Bank AG, Luxembourg, ended the 1975-76 financial year success- With regard to the cornpanies included in the consoli- fully. The balance sheet total, having increased steadily dated Statements we report as follows: in the preceding years, rose strongly again by 23.2% to With DM 4.3 bn. the balance sheet total of Berliner the equivalent of DM 11.0 bn. as of 30. 9. 1976. Disconto Bank AG, Berlin, which operates as an all- This development was due substantially to money round bank, exceeded the four billion mark in the year dealings with banks. Total credit extended grew to the reviewed. Net eärnings rose frorn DM 25.9 rn. to DM equivalent of DM 6.3 bn. The bank rnanaged to further 29.1 m.; out of this DM 14.0 m. will be allocated to pub- strengthen its position in the market. This was clearly lished reserves. It is planned to pay a dividend of 18% reflected not least in its participation in the manage- (up from 16%) and to add another DM 3.0 m. to pub- rnent of a large number of big international credits. lished reserves. Own funds will then amount to DM With a share of 95% in the funds from outside 205.0 rn., or 4.8%. of the balance sheet total. sources, deposits frorn credit institutions were, as Häving cpened a branch in Lichtenrade and taken before, the main source of refinancing. As the higher de- over the operations of the Berlin branch of the Deutsche mand for refinancing funds was also covered in the past financial year by taking up money from banks, the liabil- welfare trusts, professional old-age pension schemes ities to credit institutions rose by 23.1% to the equiva- and those organised by associations and other institu- lent of DM 10.0 bn. tional investors. It looks after staff funds as well. The Owing to the continuing business expansion, the number and total assets of the funds continued to rise bank increased its capital in October 1975 by LF 600 m. in the past financial year. The assets of 80 funds totalled (DM 40 m.) to LF 1,500 m. (DM 99 rn.). To further DM 2 bn. at the end of 1976 (1975: DM 1.6 bn.). The strengthen its own capital base the profit of LF 681 m. Shareholders' Meeting resolved to increase the capital (DM 45 m.) for the financial year ending 30. 9. 1976 was by DM 0.5 m. to DM 2.5 m. from the reserves which had allocated to reserves. This brings the capital and pub- grown to DM 1.05 m. and to make a distribution again of lished reserves to LF 3,327 m. (DM 220 m.). 8% thereon for the 1975-76 financial year. The favourable development of our Luxembourg sub- sidiary's business continued also in the first months of In spite of a further overall decline in house-building, the new financial year. Deutsche Kreditbank für Baufinanzierung AG, Cologne, succeeded in increasing the volume of its credits grant- Deutsche Centralbodenkredit-Aktiengesellschaft, Ber- ed by about two thirds. The bank continued to concen- lin - Cologne, as a mortgage bank, conducts all the trate even more on financing one and two-family hous- business allowed under the Mortgage Bank Law in the es and builders' minor projects, supported by the fur- Federal Territory and West Berlin, especially the grant- ther development of traditional forrns of construction fi- ing of mortgage and communal loans as weil as the nancing and introduction of new credit Programmes. issuing of mortgage and communal bonds to refinance The volume of credit commitments for the purchase these loans. of real estate, development, builders' and interim con- As a result of the general decline in building activity, struction loans in short-term business expanded by the bank's lending and borrowing business decreased 86% to DM 424 m. in 1976 by comparison with the preceding year: busi- In long-term business, new credits granted rose from ness in communal loans slackened off as well. Mort- DM 175 m. a year ago to DM 250 m. in 1976. The decline gage commitments in 1976 totalled DM 593 m. (1975: in the financing of building-owner models was more DM 862 m.). Owing to the public authorities' still heavy than offset by growth of normal overall construction fi- demand for credit, new business was dominated by nancings and the contribution of new credit pro- communal loans with commitments of DM 900 m. grammes - flexible-interest mortgages and bridging (1975: DM 1,324 rn.). Altogether loan commitments thus loans. amounted to DM 1,493 m. against DM 2,186 m. in the With an unchanged capital of DM 42 m. and own year before (-32% ). funds of DM 60.7 m., the balance sheet total rose by The balance sheet total rose by DM 1,121 rn. (or 11.9% to DM 1,957 m. After a period of time in which no 12.0%) to DM 10,485 m. (1975: -1 DM 1,756 m. or dividend was paid, to strengthen the reserves, a distri- 23.1%). Out of the net earnings of DM 38.0 m., it is in- bution of 8% is scheduled for 1976. tended to allocate DM 18.3 m. to published reserves. At the Annual General Meeting it will be proposed to trans- Its wholly-owned subsidiary, Deutsche Gesellschaft fer another DM 7.0 rn. to statutory reserves. If this pro- für Immobilien-Leasing mbH, Düsseldorf, concentrated posal is accepted, the bank's own funds will total DM its activities again on the construction of office and fac- 257.0 m. tory buildings. In spite of trade and industry's falling Payment of a dividend of DM 10.- and a bonus of DM propensity to invest and the company's voluntary re- 1.- per share of DM 50.- par value is planned for the straint in the commercial business sector, it was possi- 1976 financial year. ble to further increase the number of contracts as com- pared with the year before. Deutsche Gesellschaft für Fondsverwaltung mbH As of October 1, 1976 Deutsche Bank AG merged its (DEGEF), Frankfurt (Main), manages individual invest- real estate leasing interests with those of Comrnerzbank ment funds (special funds) for institutional investors, AG in a new company, Deutsche Gesellschaft für Immo- such as insurance companies, company pension and bilien- und Anlagen-Leasing mbH in Düsseldorf. The leasing subsidiary of Deutsche Kreditbank für balance sheet total rose by 7.5% to DM 13,355 m. Baufinanzierung hence no longer takes on new busi- (+15.3% a year earlier). ness. It is, however, completing existing contracts, us- The capital is DM 63.4 m. After allocating, as ing the new leasing company as trustee. scheduled, DM 15 m. from the 1976 net earnings, the published reserves will be shown at DM 289.4 m. A fur- ther DM 5 m. is to be added to the reserves by resolu- Deutsche Ueberseeische Bank, Berlin - Hamburg, tion of the General Meeting. Own funds will then total was integrated into Deutsche Bank AG pursuant to 53 DM 357.8 m. 319 ff. stock Corporation Act. The integration was re- A dividend of DM 10.- per share of DM 50.- par value solved by the Ordinary General Meetings of the two is to be paid for the 1976 financial year as well. companies in May 1976 and became effective in the The Frankfurter Hypothekenbank holds all the shares middle of 1976. Operations of the Tokyo branch, which of Frankfurter Gesellschaft für Vermögensanlagen mbH, was closed down with effect from 30. 6. 1976, were tak- Frankfurt (Main), which owns, in each case, 95% of the en over by the branch of Deutsche Bank AG, which was capital of Hochhaus und Hotel Riesenfürstenhof Aufbau- opened thcre on 1. 7. 1976; the Luxembourg branch ter- gesellschaft mbH, SB-Bauträger GmbH, SB-Bauträger minated its activities early in August 1976. Later in 1976 GmbH & Co. Urbis Verwaltungs-KG and SB-Bauträger the branches in Düsseldorf, Cologne and Stuttgart were GmbH & Co. Urbis Hochhaus-KG, all of Frankfurt (Main), closed; the second central office in Berlin was closed at and which wholly owns the Nordhamburgische Bau- the beginning of this year. The business operations of trägergesellschaft mbH, Hamburg. the bank's domestic offices were transferred to the branches of Deutsche Bank AG or Berliner Disconto Gefa Gesellschaft für Absatzfinanzierung mbH, Bank AG located at the respective centres. Wuppertal, with its subsidiaries Gefa-Leasing GmbH, The operations of Deutsche Ueberseeische Bank - Wuppertal, and Efgee Gesellschaft für Einkaufs-Finanti- acting in close cooperation with the German and foreign erung mbH, Düsseldorf, offers medium-term financing offices of Deutsche Bank AG - are now restricted main- of capital and consumer goods, leasing of tnovables, ly to Latin America through legally dependent branches hire purchase and factoring. under the style of Banco Aleman Transatlantico in Bue- The combined balance sheet total of the Gefa Group nos Aires (Argentina) (with a, sub-branch in Rosario, grew in the year reviewed by 20% to DM 1,521 m.. DM 9 Province of Sta. Fe, and ten municipal branches in the m. of the net earnings was allocated to Gefa's published greater Buenos Aires area) and in Asuncion (Paraguay), reserves. Gefa's own funds now total DM 60 m. Under and under the style of Banco Alemäo Transatlantico in the existing profit and loss transfer agreement DM 10.8 Sao Paulo (Brazil). The liable funds are DM 91.5 m. m. was transferred to Deutsche Bank AG. The balance sheet total of DM 405.7 m. is mainly Gefa, which is linked by profit and loss transfer agree- composed of the indjvidual balance sheets of the ments to its two subsidiaries, Gefa-Leasing and Efgee, branches in South America. The Course of business of still holds all the shares of Gefi Gesellschaft für Finanzi- these branches in 1976 was satisfactory. erungsvermittlung mbH, Berlin, and Heinz Langer Versi- The disposable profit is DM 7.2 m.; it will be used to cherungsdienst GmbH, Ctuttgart. pay a dividend of DM 6.- per share of DM 50.- par value, i.e. 12%, on the capital of DM 60 m. 68.9% of the DM 25 m. capital of Saarländische Kre- ditbank AG, Saarbrücken, is held by Deutsche Bank AG. Frankfurter Hypothekenbank, Frankfurt (Main), con- Of the remainder, 23.3% is held by the French banking ducts all the banking operations of a mortgage bank; it group of Credit lndustriel et Commercial; about 19% of is the oldest and largest private mortgage bank. It oper- this is owned by Credit lndustriel d'Alsace et de Lor- ates throughout the Federal Territory and in West Berlin. raine. It also grants communal loans to customers in the EC The bank with its 19 branches in the Saar area con- area. Loan commitments in 1976 came to DM 2,124.8 ducts all the banking business of an all-round bank. The m., DM 500.7 m. of which was attributable to mortgage balance sheet total increased by DM 21.7 m. (or 2.5%) business and DM 1,601.9 m. to communal loans. The to DM 891.7 m. A dividend of again 12% is to be paid I I .-. . .- - - I - P- -- - h.. - - -.-- - . .-, --T -- , . ------.- - 8 88, .. 8.

b.w@wheBank AO, FranMurt (Main) ', I,,, E. ..

lncluded in the Group Statement were: 1 C~mmerclalbanks

Berliner i

MoiZgege banks

. ' , " ' Specielised banks bi . 7- , L .% ..:, ,.;.,,, , . J.,;&b, '.T .>-l>.l=L

&@EU) E reirrroaS,M- IvsMmng m$H IDür~seld~rf I for the 1976 financial year. Own funds (capital and pub- Wilh. Ahlmann GmbH, Kiel lished reserves) total DM 50 rn. as of December 31, "Alwa" Gesellschaft für Vermögensverwaltung mbH, 1976. Harnburg Saarländische Kreditbank AG rented its bank prernis- BeteiIigungsgesellschaft für Flugzeugleasing rnbH, es in Saarbrücken from Deutsche Bank AG; the site of Frankfurt (Main) the bank building at St. lngbert was leased by Deutsche Burstah Verwaltungsgesellschaft mbH, Hamburg Bank AG to the Saarlandische Kreditbank for a long Castolin Grundstücksgesellschaft mbH, Cologne term. Further developed property was placed at the dis- CGT Canada Grundbesitz Treuhand GmbH, Frankfurt posal of Saarländische Kreditbank AG by its subsidiary, (Main) Saarländische Immobilien-Gesellschaft mbH, Saar- Deutsche Beteiligungsgesellschaft mbH, Frankfurt brücken. There is a profit and loss transfer agreement (Main) between the two cornpanies. Deutsche Canada-Grundbesitzverwaltungsgesellschaft rnbH, Frankfurt (Main) Hessische Immobilien- Verwaltungs-Gesellschaft mbH, Deutsche Gesellschaft für Anlageberatung mbH, Frankfurt (Main), owns and adrninisters land and build- Frankfurt (Main) ings which are mainly utilised by Deutsche Bank AG, Deutsche Verrnögensbildungsgesellschaft mbH, including the training centre at Kronberg. Bad Homburg V d Höhe DIL Deutsche Gesellschaft für Bauplanung Matura Vermögensverwaltung mbti, Diisseldorf, and und -beratung rnbH, Düsseldorf Süddeutsche Vermögensverwaltung GmbH, Frankfurt DIL Deutsche Gesellschaft für Immobilien-Mietkauf (Main), manage property for their own and third ac- rnbH, Cologne Count. Elektro-Export-GmbH, Nuremberg, whose shares DIL Grundstücksgesellschaft für Verwaltungs- und are wholly owned by Süddeutsche Verrnögensver- Lagergebäude mbH, Cologne waltung GmbH, engages in financing the export of Essener Grundstücksverwertung Dr. Ballhausen, electrical engineering products. Dr. Bruens, Dr. Möller KG, Essen Frankfurter Gesellschaft für Vermögensanlagen mbH, Trinitas Vermögensverwaltung GmbH, Frankfurt Frankfurt (Main) (Main), manages property for its own and third account Gefi Gesellschaft für Finanzierungsverrnittlung rnbH, in West Berlin jointly with its subsidiary Tauernallee Berlin Grundstücksgesellschaft mbH, Berlin. The buildings are Grundstücksgesellschaft Grafenberger Allee rnbH, rented for the most Part to Berliner Disconto Bank AG Cologne and its employees. There is a profit and loss transfer Grundstucksgesellschaft Otto-Hahn-Strasse mbH, agreernent with Deutsche Batik AG. Cologne Hochhaus und Hotel Riesenfürstenhof Aufbaugesellschaft mbH, Frankfurt (Main) Hypotheken-Verwaltungs-Gesellschaft mbH, Berlin IZI Bielefeld Informations-Zentrum Immobilien GmbH, Bielefeld Non-consolidated cornpanies IZI Dortmund Informations-Zentrum Immobilien GmbH, Dortrnund Because of their srnall importance the following Ger- Jubiläurnsstiftung der Deutschen Ueberseeischen Bank man members of the Group have not been included in GmbH Unterstützungskasse, Hamburg the consolidated Statements pursuant to 9 329 Stock Heinz Langer Versicherungsdienst GmbH, Stuttgart Corporation Act. The balance sheet totals as of 31. 12. Nordharnburgische Bauträgergesellschaft rnbH, 1976 arnounted to DM 200 rn. Their inclusion would Hamburg have increased the Group's balance sheet total by Nordwestdeutscher Wohnungsbauträger GmbH, 1.9°/o,. Thus, insight into the Group's net asset and earn- ings position is not irnpaired by their exclusion. Peina Grundstücksverwaltungsgesellschaft mbH, Cologne Saarländische Immobilien-Gesellschaft mbH, sheet. The financial years of the companies are concur- Saarbrücken rent with the exception of two companies for which an SB-Bauträger GmbH, Frankfurt (Main) interim statement was prepared. The interim report of SB-Bauträger GmbH & Co. Urbis Verwaltungs-KG, our Luxembourg subsidiary was not formally estab- Frankfurt (Main) lished by the statutory bodies of Compagnie Financiere SB-Bauträger GmbH & Co. Urbis Hochhaus-KG, de la Deutsche Bank AG but it was approved by its Frankfurt (Main) Board of Directors for inclusion in the consolidated Schisa Grundstücksverwaltungsgesellschaft mbH, statement of accounts according to 5 331 subpara. 3, Cologne sentence 3, Stock Corporation Act: conversion was Süddeutsche Bank GmbH, Frankfurt (Main) made at the rate of DM 1 = LF 15.13 Tauernallee Grundstücksgesellschaft mbH, Berlin The book values of the participations in the consoli- Terraingesellcchaft Gross-Berlin GmbH, Berlin dated companies were offset against the subsidiaries' Transgermania Verwaltungs-GmbH, Hamburg proportionate own funds (capital and published re- Franr Urbig- und Oscar Schlitter-Stiftung GmbH, serves). The differente is shown as reserves arising Düsseldorf from consolidation; they are a form of own capital. Claims and liabilities between the members of the The following associated companies domiciled in Group were offset against each other. Germany are not under the sole management of In the consolidated profit and loss account the re- Deutsche Bank AG, and hence are not eligible for con- ceiptc shown in the individual Statements of accounts, solidation: as far as they are compensation for mutual services of the consolidated companies - almost exclusively inter- Deutsche Eisenbahn Consulting GmbH, Frankfurt (Main) est and commissions - have been offset against the re- Deutsche Gesellschaft für Anlageverwaltung mbH, spective expenses. There were no inter-company profits Frankfurt (Main) to be reported. Amounts received in 1976 by Deutsche Deutsche Gesellschaft für Immobilien-Anlagen Bank AG from holdings in member companies of the '"merica" mbH, Bad Homburg vdH Group, which represent distributions from the 1975 Exportkreditbank AG, Berlin profits, were included under profit brought forward. Kistra Beteiligungsgesellschaft mbH, Frankfurt (Main) Rossma Beteiligungsgesellschaft mbH, Frankfurt (Main)

There are no business transactions capable of materi- ally affecting Deutsche Bank AG's situation to be noted in connection with these companies. The Deutsche Bank only maintains those business relations with these companies which are normal with bank customers. Business between the companies of the Group was transacted at normal market conditions.

Principles of consolidation

The consolidated annual statement of accounts was drawn up on the special sheets published for credit in- stitutions with the legal form of an Aktiengesellschaft (public limited company) and for mortgage banks. The valuations of the individual balance sheets were taken over unchanged into the consolidated balance Notes on the consolidated Statement of accounts Assets

Liquidity Securities The cash reserve (cash in hand, balances with the Deutsche Bundesbank and on postal cheque accounts) Bonds and debt instruments are shown at DM 3.9 bn., was DM 4.8 bn. as of December 31, 1976; cornpared an increase of DM 1.4 bn. 83.4% of this was eligible as with Group liabilities of DM 76.3 bn. - excluding long- collateral at the Deutsche Bundesbank, term mortgage bank business - the Cash liquidity ratio Debt instruments issued by members of the Group, Comes to 6.3% (7.8% a year earlier). i.e. Deutsche Bank AG and the two mortgage banks, Total liquid assets (cash reserve, items received for were held in the amount of DM 582.8 m. collection, bills rediscountable at the Deutsche Of the DM 1,880.6 m. Securities, so far as they have Bundesbank, claims on credit institutions payable on not to be included in other items, 97.0% was invest- demand, Treasury bills and discountable Treasury ment certificates and shares marketable on a stock ex- bonds, and bonds and debt instruments eligible as col- change. lateral for Bundesbank advances) were DM 18.9 bn. The minimum value principle has been applied for the Hence the total liquidity ratio (in % of the liabilities valuation of securities. mentioned) stands at 24.8% (29.0% a year earlier).

Total credit extended

Total credit extended grew by DM 8.5 bn., or 13.0%, to DM 73.7 bn. The Group's credit expansion was sup- 3eUtS~h~)Blank Graup m uewmDann nu ported by long-term business; with DM 6.0 bn. a good BIHlaW two thirds is attributable to the increase in Long-term of OM claims on non-bank customers including long-term lendings in mortgage bank business. Short end medium-term claims on non-bank custom- ers increased slightly by DM 0.7 bn. (or 3.2%) to DM 21.7 bn., Discounts rose to DM 7.8 bn. (+4.6%). Loans to credit institutions expanded by DM 1.4 bn. (or 47.1 % to DM 4.5 bn. In addition there were rights of recourse in respect of "per aval" guarantees and letters of credit in the arnount of DM 14.3 bn. at the end of the year. They are not included in the aforementioned volume of credit. The DM 1.9 bn. increase was especially due to guaran- tees in foreign business.

Investments in subsidiaries and associated eompanies

Holdings in non-consolidated companies are shown at DM 434.8 m. after totalling DM 374.4 m. in the pre- vious year. Apart from holdings in rnanaging and financ- ing companies, this item Covers participations in credit institutions worth DM 268.6 m. or 61.8%. They are mainly minority participations in foreign credit institu- tions. End of 1976 End of 1975 Change Total credit extended - in millions of DM -

Claims on non-bank cuctomers short and medium-term clairns ...... 21,729 21,052 + 677 = 3.2% long-term claims ...... 18,073 14,108 +3,965=28.1% 39,802 35,160 f 4,642 = 13.2%

Long-term clairns in mortgage bank business ...... 21,578 19,527 +2,051 = 10.5% Discounts ...... 7,825 7,482 I- 343 = 4.6% Lendings to credit institutions ...... 4,469 , 3,039 + 1,430 = 47.1 % Total credit extended ...... 73,674 65,208 f 8,466 = 13.0% -. -.

Fixed assets Liabilities

Land and buildings are shown at DM 801.1 rn:, includ- Funds from outside sources ing DM 744 rn. of land and buildings used for banking purposes. At the year-end the Deutsche Bank Group had accept- Office furniture and equiprnent is entered at DM ed funds frorn outside sources totalling DM 97.9 bn., 241.4 rn. DM 13.1 bn., or 15.5%, more than at the end of 1975. Leasing equipment amounts to DM 635.8 rn., includ- Banks' deposits wer6 raised by DM 7.0 bn. or 32.4%; ing DM 186.1 m. worth of property rented out or intend- no less than DM 6.3 bn. of this was attributable to term ed for renting out by Deutsche Gesellschaft für Irnmobi- deposits from credit institutions originating mainly frorn lien-Leasing mbH, and DM 449.7 m. worth of movable abroad. leasing goods of Gefa-Leasing GmbH. In view of the im- On the other hand, Liabilities to non-bank customers portance and business character of the leasing sector, grew rnore slowly in 1976 than in the year before, name- we have shown this item separately, for the first time, in ly by 6.0% to DM 44.1 bn. Demand deposits declined the consolidated balance sheet. We have adjusted the slightly (- DM 0.2 bn.), whilst non-bank custorners' term comparative figures of the previous year accordingly. deposits increased by DM 1.6 bn. (+15.2%) and sav- ings deposits by DM 1.1 bn. (+5.8%). The current volurne of Debt instrurnents issued by Sundry assets members of the Group, including those deliverable, in- creased by DM 3.4 bn. in the year reviewed (1975: DM The itern Sundry assets shown at DM 1,167.5 m. con- 3.7 bn.) to DM 23.6 bn.; almost half the growth, DM 1.6 sists primarily of share rights which do not represent bn., was due to debt instruments of Deutsche Bank AG, longer-term participations; moreover, it contains hold- DM 1.8 bn. to rnortgage and cornmunal bonds of ings in gold and silver, including the holdings used as Deutsche Centralbodenkredit-AG and Frankfurter Hy- Cover for registered gold and silver certificates. pothekenbank. The consolidated companies had secured loans in the amount of DM 37.6 m. by mortgages on real estate. lncluded in banking liabilities towards other creditors is DM 71.1 m., which was accepted by the Argentine branches of the Deutsche Ueberseeische Bank from their customers in accordance with Argentina's regula- tions on peso deposits ("for account of the Central Bank of Argentina"). End of 1976 End of 1975 Funds from outside sources - in rnillions of DM -

Liabilities towards credit institutions dernand deposils ...... terrn deposits ...... customers' drawinys on credits opened at other institutions ......

Liabilities to non-bank customers demand deposits ...... term deposits ...... savings deposits ......

Debt instruments issued (including debt instruments deliverable) ...... Long-term loans taken up in mortgage bank business ...... Pro rata interest and interest due in mortgage bank business ......

Total funds frorn outside sources ......

Other liability items Liabilities for possible calls on shares in public and private limited companies stood at DM 35.0 m. at the Of the Provisions for special purposes totalling DM balance sheet date. 1,629 m., DM 907 rn. is due to Provisions for pensions, Coupled with Group banks' holdings in Liquiditäts- indicated on the balance sheet at the actuarially com- Konsortialbank GmbH, Frankfurt (Main), is a proportion- puted Part value; DM 722 m'. is attributable to Other al contingent liability for other partners' obligati~insto provisions for liabilities of uncertain arnount and taxes, pay up further capital when called, in addition to the as well as overall adjustrnents to rights of recourse Group's own obligation for up to DM 50.4 m. which cannot be offset against assets. Among the Transitory items on the liabilities side to- Moreover, we refer to the Statement of backing, giv- talling DM 629 rn. items in the arnount of DM 106 m. are en in the notes to the Group controlling cornpany's shown separately pursuant to 5 25 Mortgage Bank Act. Statement of accounts, for those affiliates on which Deutsche Bank AG exerts an entrepreneurial influence. The Claims on and Liabilities towards associated Comments companies shown below the line in the balance sheet after consolidation of the respective debts refer exclu- The Group's Endorsement liabilities from rediscount- sively to cornpanies not included in the consolidated ed bills and own drawings are showri at DM 605 rn. aft- accounts. er DM 142 m. at the end of 1975. Liabilities arising from guarantees of various kinds and warranty contracts rose to DM 14.3 bn. The in- crease of DM 1.9 bn., or 15.3%, reflects the further ex- pansion of our international business. Obligations to repurchase items assigned en pension amounted to DM 1.2 bn. at the end of the year against DM 1.6 bn. a year earlier. Consolidated Profit and Loss Account After the permissible offsetting against Depreciation and adjustments on claims and securities, and alloca- tions to provisions for possible loan losses, Other Earnings on the volurne of business receipts, including those from the writing back of provi- sions for possible loan losses for the Group rose by DM In spite of the Group's considerably higher volume of 200 m. to DM 482 rn. business, the total interest surplus, owing to a strong decline in the interest rnargin, rose by only DM 37 m. (+1.7%) to DM 2,166 m. Earnings on the volume of Staff and material expenditure business (interest surplus) of the consolidated compa- nies were higher than staff and material expenditure. The interest receipts and expenses are in detail as fol- The Group's Staff expenses totalled DM 1,553 m. in 1976 (+4.6% ). While salaries and wages rose by DM 71 lows: m. (+6.3%) and social security contributions by DM 22 m. (+15.4%), expenditure on retirement pensions and 1976 in 1975 in other benefits decreased by DM 24 m. (-1 1.6% 1, after millions millions the change frorn current value to Part value in the ofDM ofDM Group's provisions for pensions had already been large- ly cornpleted in 1975. lnterest and similar receipts from lending Material expenditure for the banking business again and rnoney market transactions ...... increased by an above-average amount of DM 61 rn., or lnterest earned in mortgage bank 15.8%, to DM 446 m. Altogether the staff and material business ...... expenditure of the consolidated companies of the Current receipts from securities, etc. .... Deutsche Bank Group reached almost DM 2 bn. in 1976 Total interest rsceipts ...... as against DM 1,870 m. the year before. lnterest and similar expenses ...... lnterest paid in rnortgage bank business ...... Total interest expenses ...... Other expenses Earnings on the volurrie of business lir~terestsurplus) ...... Depreciation and adjustments on land and buildings and on office furniture and equipment rose by DM 57.0 m. to DM 232.5 m.; DM 39.0 m. (DM 38.5 m. a year ear- lier) of this was due to Special depreciation in accord- ance with g 6b lncome Tax Law. Earnings on servicec The Taxes paid by the consolidated companies were DM 455.2 m. Taxes on income, earnings and property The surplus from Commission received of DM 624 m. went up by DM 43.2 m. to DM 438.6 m. Other taxes and Commission paid of DM 22 m. was DM 602 m., DM came to DM 16.7 m. after DM 22.0 m. a year earlier. 22 m., or 3.8%, more than a year earlier. Not accounted for in the Group's tax expenses was corporation tax payable in 1977 on subsidiaries' profits intended for distribution to the parent company in Other receipts 1977; corporation tax, which may be reduced on appli- cation in the year of transition to the new corporation Non-recurrent receipts from the mortgage banks' 1s- tax System, is DM 14 m. Not included either are the ex- sue and loan business ara shown at DM 104 m. after tra expenses in accordance with 5 170 subpara. 2 Stock DM 100 m. the year before. The corresponding non-re- Corporation Act, following provisional dividend propo- current expenses amounted to DM 91 m. (DM 96 m. a sals of Berliner Disconto Bank AG, Deutsche Central- year earlier). bodenkredit-AG and Frankfurter Hypothekenbank. Profit, capital and resewes The Reserve arising from consolidation after offsetting the book balues of the participations against own ca- Out of the Group's Net earnings for the year of DM pital resources is DM 293.3 m. As a result of allocationc 440.0 m., DM 162,l m. was allocated to published to reserves by Group companies, it increased by DM reserves, DM 62.1 m. of which in subsidiaries. 100.9 m. Including profit brought forward of DM 39.8 m. and The Compensatory item for shares held by others is after deduction of the profit share of DM 9.5 m. due to shown at DM 138.6 m. Apart from the DM 129.1 m. outside shareholders, Profit of the Group amounts to share in tha own capital resources attributable to out- DM 308.2 m. side shareholders of Deutsche Centralbodenkredit-AG, The Group's own funds as of December 31, 1976 are Deutsche Kreditbank für Baufinanzierung AG, Frankfurt- made up as follows: er Hypothekenbank and Saarländische Kreditbank AG, a DM 9.5 m. outside profit share is included. Capital ...... DM 900.0 m. Published resetves ...... DM 2,200.0 m. Reserve arising from consolidation .... DM 293.3 m. Total ...... DM 3,393.3 m.

Frankfurt (Main), March 1977

Deutsche Bank Aktiengesellschaft

The Board of Managing Directors

Burgard Christians Ehret Guth

Herrhausen van Hooven Kleffel Leibkutsch

Mertin Thierbach Kopper Zapp Consolidated Balance Sheet as of December 31, 1976

Consol idated Profit and Loss Account for the period frorn January 1 to December 31,1976 Assets Deutsche Bank Aktiengecellschah

Cash in hand ......

Balances with the Deutsche Bundesbank ......

Balances on postal cheque accounts ...... 1 40.060.1 24.09 28,823

Cheques on other banks, rnatured bonds, interest and dividend Coupons and iterns received for collection ......

Bills discounted ...... incii~ding: a) rediscountalile at the Deutsche Bundesbank ....DM 6,174,320,625.69 li) owii drawings ...... DM 82,752.044 05

Claims on credit institutions a) payable on demand ...... b) with agreed life, or subject to agreed period of notice, of ba) less than three rnonths ...... bb) at least three months, but less than four years ...... bc) four years or longer ...... including: - used as Cover in mortgage bank business ...... DM 4,000,000 -

Treasury bills arid discountable Treasury bonds a) of the Fcderal Repuhlic and the Linder ...... b) others ......

Bonds and debt instruments a) with a life of iip tofour years aa) of the Federal Republic and the Laridor ....DM 1,819,850.907.36 ab) of credit institutions ...... DM 140,147,368.07 ac) others ...... DM 121,454.418.07 iricluding: eligible as collateral for ~undesbankadvances ....DM 1,950,830,723.02 used as cover in mortgage bank business ...... DM 155,327,500.- b) with a life of more than four years ba) of the Federal Repuhlic and the Lander ....DM 466.837.336.08 bb) of credit institutions ...... DM 868,758,725.54 bc) others ...... DM 443,153,648.30 including: eligible as collateral for Bundesbank advances . . DM 1,269.490.531.79 used as cover iri mortgage bank business ...... DM 104,563,409.90

Securities,sofar as they have not to bc included in other iterns a) shares markctable on a stock exchange and investment fund

certificates ...... -- ...... h) other securities ...... including: holdings of more than one tenth of the shares in a joint stock corporation or mining company,excluding investments in si~bsidiariesand associatod companies ...... DM 1,339,589,666.59

Carried forward Assets Consolidated Balance Sheet

31. 12. 1975 D M D M in DM 1,000

Brought forward 38.566.043.1 71.60 32,426,488

Claims on customers with agreed life, or subject to agreed period of notice, of a) less than fouryears ...... 21,728,538,931.18 21,052,021 iticluding: used as cover in mortgage bank business ...... DM 692,805,782.45 b) four years or longcr ...... 18,073,411,246.10 14,107,502 including: 39,801,950.177.28 35,159,523 ba) secured by mortgages on real estate ...DM 1,263,714,237.10 1 hh) cnminunal loans ...... DM 787,422,469.93 due in less than four yeürs ...... DM 9,707,767,000.-

Mortgage bank lendings with agreed life of four ycars or longer a) mortgages ...... 10,359,851.129.82 9,910,527 used as cnver ...... DM 9,591,933,916.05 h) comrnurial luaris ...... 10,789,715,993.65 9,232,328 used as Cover ...... DM 10,512,859,435.05 C) others ...... 85,925,374.54 19,257,974 including: to credit institiitions ...... DM 1,215,439,568 72 21,235,492,498.01 L1 lnterest on long-term mortgage bank lendings ai pro rata interest ...... 302,280,964.47 220,005 b) interest due aftcr October 31, 1976 and on January 2, 1977 ...... 40,432,851.60 49,483 C) interest arrears ...... 342.71 3.816.07 LlI269,488 Equalisatiori arid covcririg claims on Federal and Lander authorities urider ttie Currency Reform Laws ...... 474,990,203.25 513,162 including: used as cover in mortgage bank busiriess ...... DM 75,246,835.81

Loans on a trust basis at third party risk ...... 947,317,022.69 783,228

Invcstriierits insi~hsidiariesandassociated companies ...... 434,846,238.24 374,352 inclutling: in credit institutions ...... DM 268,562,195.16

Land and buildings ...... 801,140,438.95 738,708 including: taken over in mortgage business ...... DM 20,918.886.78

Office furniture and equipment ...... 241,419,496.82 208,038 Leasing equipmcrit a) lancl and biiildings ...... 186.119.116.57 157,107 h) niovahle leasing goods ...... , ...... 449.699.723.43 E3310,442 635.81 8.840.- 467,549 Own shares ...... 7,861,254.- - nominal amount: ...... DM 1,405,000- Debt instriiments issued hy mernbcrs of ttie Group ...... 582,758,934.93 41 0,491 nominal amount: ...... DM 585,673,340.- 1,167,456,041.73 91 5,588 Sundry assets ...... Trancitory items ...... 7,478,550.31 14,783

Total Asscts 105,247,286,683.88 91,539,372

The assets and the rights of recourse in rcspcct of the Iiahilities shown below the liabilities side iiiclude a) Claims on associated companies ...... 241,603,837.50 139,686 b) Claims which arise froni credits falling under Article 15, paragraph I, items 1 to 6, and paragraph 2, nf the Bankirig Law, so far as they are not shown in a) ...... 548,098,763.39 435,744 as of December 31,1976 (continued) Liabilities 31. 12. 1975 D M D M D M in DM 1,000

Brought forward 96,285,893,764.65 83,357,739 Loatis taken up in mortgage bank business with agreed life, or subject to agreed period of notice, of four years or longer a) from credit institutions ...... 485,356,261.63 425,118 b) others ...... 526,400,205.31 rn901,563476,445 including: 1,011,756,466.94 with partial liability ...... DM 2,429,351.08 due in less than four years ...... DM 492,080,554.41

lnterest on debt instruments issued and loans taken up in mortgage bank business a) pro rata interest ...... 433,350,962.75 345,519 b) interest due (including that due on January 2, 1977) 199,436.516.42 L3204,500 632,787,479.17 550.01 9 Own acceptances and prornissory notes in circulatiori ...... 158,922,693.60 216,798 Loans on a trust basis at third party risk ...... 947,317,022.69 783,228 Provisions for special purposes a) for pensions ...... 906,948,857.87 843,674 b) others ...... 721,749,824.52 EII616,491 1,628,698.682.39 1,460,165 Sundry liabilities ...... 61,910,789.65 66,499 Endowments and benevolent funds assets of the endowrnents ...... 1,993.719.79 less investments insecurities ...... 1,781,946.51 m Transitory iterns 21 1,773,28 1 57 a) in accordance with Article 25 of the Mortgage Bank Law ...... 106,479,621.94 b) others ...... 522,340,097.31 l---2zI Special items including reserves 628,819,719.25 538,129 a) in accordance with the Tax Law regarding Developing Countries ...... 17.658.1 38.53 10,678 bi in accordance with Article 6b of the lncorne Tax Law 4,049,734.11 C) in accordance with the tax regulation regarding overall adjustrnents ...... 29,201,628.67 44 289 50,909,501.31 --I 54,997 Capital ...... 900,000,000.- 900,000 Published reserves a) statutory reservefund ...... 1,085,000,000.- 1,085,000 bl other reserves (voluntary reserve fund) ...... 1 ,I 15,000,000.- LI1.01 5,000 2,200,000,000.- 2,100,000 Reserve arisingfrom consolidation ...... 293,268,952.70 192,403

Cornpensatory item for Shares held by others ...... 138.61 4,727.98 140,132 including: from profit ...... DM 9,539,391.21

Profit of the Group ...... 308,175,110.27 277,543

Total Liabilities 105,247,286,683.88 91,539,372

Own drawings in circulation ...... 2,269,443.48 3,774 including those discounted for borrowers' account .... DM 1.649.000.18 Endorsement liabilities on rediscounted bills of oxchatiye ...... 603,059,967.91 138,112 Liabilities arising from guarantees of various kinds and warranty coriiracts ...... 14,325.835.108.1 5 12,429,305 Obligations to repurchase iterns assigned en pension, so far as these obligations have not to be shown on the liabilities side ...... 1,245,119,889.70 1,604,967 Savings prerniurns under the Savings Premium Law ...... 554,386,361.08 531,132 Cornprised arnong the liabilities are those (including those shown below the balance sheet) to asso- ciated companias ...... 24,087,039.91 25,610 Expenses Consolidated Profit and Loss Account 1975 lnterest and similar expenses ...... 1 ( 2,494,185,768.89 2,517,968 lnterest expenditure in mortgagc bank business on a) mortgagc bonds ...... 684,639,464.22 ti) conimunal bonds ...... 752,344,915.07 630,460 C) honds in accordance with Article 5, para. 1. item 4 c of tlie Mortgage Bank Law ...... 25,601,388.89 21,635 70,355 dJ loaris taken i~p ...... , ,. 79,963.907.50 1,542,549,675.68 1,365,167 ' Commissionsand sirriilarexpenses iii respectof service transactions ...... 1 ( 22,172,320.91 20.632 Non-reciirrent expenses in respect of the mortgage banks' issue and loan husiness ...... 1 Depreciation and adjustments oti claiins and securitics, and allocaiions to provisiorisfor possible loan losses ...... Salaries and wages ...... Compulsory social security contributions ...... Experiditure on retircment Pensions and other bcnefits ...... Material expenditurefor the bankirig business ...... Depreciation and adjustments on land and buildings and on office furniture and equipment ...... Depreciütiori and adjustirienls on investments in subsidiaries arid associated companies ...... Taxes a) on iricoine, earnings and property ...... b) others ...... 455,240,329.67 417,433 Allocations to Special items including reserves ...... 11,691,162.53 2,134 Other expenses ...... 148,517,465.40 96,258 Year's net eartiings ...... 440,038,108.89 390,930

Total Expenses 7.453.1 61,965.62 7,053,531

Year's net earnings ...... Profit brouyht forward from the previous year ......

Allocations to published reserves ......

Profit attributable to outside sharetiolders ..... Profit of the Group ......

Frankfurt (Main), March 1977

Deutsche Bank Aktiengesellschaft

The Board of Managing Directors

Burgard Christians Ehret Guth

Herrhausen van Hooven Kleffel Leibkutsch

Mertin Thierbach Kopper Zapp for the period from January 1 to Decernber 31,1976 Receipts

1975 D M D M in DM 1.000

Iiiterest and similar receipts frorii leridiiig and rrioriey niarket trarisactioris 4,084,525,797.79 4,229,117 Current receipts from a) fixed-interest securitiesand debt rcgister clüinis ...... 298.160.663.40 209,309 b) other securities ...... 139,946,504.47 113,031 C) investments in subsidiaries and associated companies ...... 21,763,363.22 16,391 459,870,531.09 cII338,731 lnterest earned in mortgage bank businessfrom a) rriortgages ...... 799,324,671.55 b) communal loans ...... 859,295,339.34 1,658,620.01 0.89 1,444,069 Cornmissions and other receiptsfrom servicetransactions ...... 623,976,207.20 600,638 Non-recurrent receipts from the mortgage banks' issiie and loan btisinass 103,912,906.77 100.1 52 Other receipts, including thosefrorn the writing back of provisions for possi- ble loan losses ...... 481,731,277.37 281,910 Receipts from the writing back of provisions for special purposes. so far as they have not to be shown under "Other rccaipts" ...... 24,746,961.27 22,939 Receiptsfrom thc writing back of special iterns including reserves ...... 15,778,273.24 35,975

Total Reccipts 7,453,161,965.62 7,053,531

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

Frankfurt (Main), March 25, 1977

Treuverkehr AG Wirtschaftsprüfungsgesellschaft Steuerberatiingsgesellschaft

Dr. Nebendorf /-"andre Wirtschaftsprüfer Wirtschaftsprüfer (Chartered Accountant) (Chartered Accountant) List of Deutsche Bank's investments in subsidiaries and associated companies

German credit institutions Capital Our holding

AKA Ausfuhrkredit-Gesellschaft rnbH, Frankfurt (Main) 27.0% .. .. . DM.. . 40.0 m.

Badische ~ank,-~arlsruhe DM 26.0 m. 25.1- % .- Berliner Disconto Bank Aktiengesellschaft, ~etlin -.. DM 60.0 rn. -- 100 % Deutsche Centralbodenkredit-Aktiengesellschaft, Berlin - ~ologne DM 48.0 m. 77.6% Deutsche-- Gesellschaft fur Fondsverwaltung- --- rnb~,Frankfurt (Main) DM T0 m. 100 % DWS Deutsche Gesellschaft für Wertpapiersparen rnbH, Frankfurt (Main) DM 13.0 rn. 34.0% Deutsche Grundbesitz-Investmentgesellschaft mbH, Cologne DM 3.0 rn. 37.5% -. Deutsche Kreditbank für Baufinanzierung Aktiengesellschaft, Cologne DM 42.0m. 75.0%

Deutsche Schiffahrtsbank.. Aktiengesellschaft, Bremen DM 33.0 m. 25.2% Deutsche Schiffspfandbriefbank Aktiengesellschaft, Berlin -Bremen DM 1.0 m. 25.3% Deutsche Ueberseeische Bank, Berlin - Hamburg -. DM 60.0 m. 100 % Deutsche Verrnogensbildungsgesellschaft rnbH, 6adHomburg vdH -- DM 1.0 m. 60.0% Europaisch Asiatische Bank Aktiengesellschaft, Hamburg

Frankfurter ~odenkreditbank- ~ktienaesellschaft. Frankfurt (Main) DM 5.0- - rn. 25.0%- - " - -- Frankfurter Hv~othekenbank,Frankfurt (Main) DM 63.4 m. 88.1 % , . -- Gefa ~esellschaftfwgmb~, Wuppertal -- DM 30.0 rn. 100 % ~eselischaftzur Finanzierung von Industrieanlagen mbH, Frankfurt (Main) DM 1.0 m. 27.0% - - Handelsbank in Lubeck, Lubeck DM 12.0 m. - 25.1 % lndustriebank von-~apan(Deutschland) ~ktien~esellschaft -Th@ Industrial Bank of Japan (Gerrnany) -, Frankfurt (Main) - - DM 40.0rn. 25.0% -Liquidations-Casse in Harnburg AG, Hamburg DM 1.2 m. 24.8%

~iq-~mb~, Frankfurt (Main) DM 250.0 Trn. 5.9% F"

Lombardkasse Aktiengesellschaft, Berlin - Frankfurt (Main) .. DM 4.5 m. 14.2% Privatdiskont-Aktiengesellschaft, Frankfurt (Main) DM 5.0 m. 13.2% Rheinische ~a~&lanla~egesellschaftrnbH, cologne DM 1.0 m. 37.5"/o Saarlandische Kreditbank Aktiengesellschaft, Saarbrucken 68.9% - L DM 25.0 m. Schiffshypothekenbank zu Lubeck Aktiengesellschaft, Kiel DM 30.0 m. 28.9% ~~ddeutsche. Bank. GmbH, ~rankfurt(Main) DM .." 3.0 m. 100 %

Foreign credit institutions

AEA Development Corporation, Mariila/Philippines Phil. pes. 33.0 m. 5.5% Al-Bank Al-Saudi Al-Alami Lid., London E 12.5 m. 5.0% -. Banco Bradesco de lnvesiimento, S.A., Säo Paulo Cr$ 512.9 m. 5.0% Banco Comercial ~ransatlantico,~a~celona Ptas. 1,296.4 rn. 25.5% --Banco del Desarrollo Economico Espanol S.A., Madrid Ptas. 929.8 m. 1.8% Banco Espaiiol en ~lemania-s.A., Madrid Ptas. 165.0 rn. 15.0% Banque Comrnerciale Congolaise, ~razz&ille/~on~o CFA-francs 700.0 m. 3.1% - .- Banque Cornrnerciale du ~aroc,Casablanca/Morocco Dirham 24.4 m 7.1 % "W Capital Our holding

Banque Europeenne de Credit, Brussels Belg. frs. 2,240.0-- m. 14.3% Banque Nationale pour le Developpement Economiqiie, RabatIMorocco Dirhaiii 70.0 m. 0.4% Barique Tchadienne de creditct de Depots, NfDjamena/Chad CFA-francs 330.0 m. 7.5% P- H. Albert de Bary & Co. N.V., Amsterdam Dutch guil 15.0 m. 20.0% -L" Compagnie Financiere de la Deutsche Bank AG, Luxembourg Lux. francs 1,500.0 m. 99.9% Corporacion Financiera ~o~om-bia Col. pesos 172.6 m. 0.4% - Euro-Pacific-. Finance Corporation Ltd., Melbour~elAustralia A$ 10.0 m. 8.0% Europcan Asian Finance (HK) Ltd., Hong Kong HK$ 10.0 rn. 10.0% European Banking Company Ltd., Loridon C 10.2 i. 14.0% European Brazilian Bank Ltd., London £ 9.0 m. 12.2% -- Foreiqn Trade Bank of Iran, ~ehränllran Risls 2,100.0 in. 11.8% Industrial and Mininy Developnient Bank of Iran, Tehranllran Rials 12,000.0 m. 3.0% The lndustrial Credit and Investment Corporation of 16diä Ltd., Bombayllndia -. Ind. rupees 150.0 m. I .5% International Mexican Bank Ltd., London E 5.0 m. 11.5% Iran Overseas Investment Bank Ltd., London E 8.0 m. 6.3% L- Korea Development Finance Corporation, SeoulISouth Korea-. ~on5,000.0 m. 2.5% Malaysian Industrial Devclopment ~inanceBerhad, Kuala Lumpur/Malaysia M$ 79.6 m. 0.5% National Investment Bank for Industrial Development S.A., Athens Drachmae 450.0 m. 5.3% The Pakistan Industrial Credit anilnvestment ~or~orationLtd., KarachiIPakistan Pak. rupees 66.4 m. 4.8% Private Development Corporati.on of the Philippines, Makati, RizalIPhilippines Phil. pesos 57.2 m. 1.9% Societe Camerounaise de Banaue. YaoundeICameroon CFA-francs'. 2.300.0 m. 5.0% Societe Ivoirienne de Banaue, Abidianllvorv Coast CFA-francs 1,500.0 m. 12.0% Teollistamisrahasto Oy-lndustrialization Fund of Finland Ltd., Helsinki Fmk 71.0 m. 0.4% Union ~abzaisede Banoue. LibrevilleIGabon CFA-francs 937.5 m. 8.0% Union Senegalaise de Banque pour le Commerce et I'lndustrie, DakarISenegal CFA-francs 2,000.0 m. 1.9% > - Union ~oqÖlaisede Banque, LomeIToqo CFA-francs 600.0 m. 18.0%

Other German enterprises

"Alwa" Gesellschaft fur Vermogensverwaltung mbH, Hamburg DM 0.5 m. 95.0%

CGT Canada ~rundbesittTreuhand GmbH, Frankfurt (Main) DM 0.1 m. 55.0% P Deutsche Beteiligungsgesellschaft mbH, Frankfurt (Main) DM 1.0 in. 92.5% Deutsche Canada-Gruridbesitzverwaltungsgesellschaft mbH, Frankfurt (Main) . - DM 0.1 m. 55.0%

Deutsche Gesellschaft fur Anlayeberatung mbH, Frankfurt (Main) DM 0.5 m. 90.0% P Capital Our holding

Deutsche Gesellschaft für Immobilien- und Anlagen-Leasinq mbH, Düsseldorf Deutsche Grundbesitz-Anlagegesellschaft mbH, Coloyne DM 0.04 m. 37.5% Deutsche Waanisfinanzierunas-Gesellschaft mbH.'~rankfurt(Main) DM 10.0 m. 14.0% Eurocard Deutschland Internationale Kreditkarten-Oraanisation GmbH, Frankfurt (Main) Hessische Immobilien-Verwaltungs-Gesellschaft mbH, Frankfurt (Main) DM 1.0 m. 95.0% HOSTRA Beteiligungsgesellschaft mbH, Düsseldorf DM 30.0m. 33.3% Matura Vermöqensverwaltunq mb~,-.~üsseldorf DM 0.3 m. 100 % Nordwestdeutscher Wohnungsbauträger GmbH, Braunschweig DM 0.2 m. 100 % Süddeutsche Vermögensverwaltung GmbH, Frankfurt (Main) DM 4.0 m. 100 % Trinitas Vermö~ensverwaltunqGmbH, Frankfurt (Main) DM 1.0 m. 100 %

Other foreign enterprises

Adela Investment Coinpany S.A., Luxemboury/Lima (Peru) US$ 61.8 m. 0.7% Deutsche Bank (U.K.) Finance Ltd., London £ 0.2 m. 99.9% EDESA Societe Anonyme Holding, Luxcmbourg US$ 11.0 m. 4.6% , , European Arab Holding S.A., Luxembourg Lux. francs 2,000.0m. 5.5% European Banks' International Company S.A., Brussels Belg. frs. 175.0 m. 14.3% -. . European Financial Associates N.V., The Haguc Dutch quil.- 0.4 m. 14.3% European Hotel CO~~.-(EHC)N.V., Amsterdam Dutch guil. 16.5 m. 5.4% P- German American Capital Cor~oration,BaltimoreIUSA US$ 0.01 m. 100 % International Investment Corporation for Yugoslavia, Luxembourg US$ 13.5 m. 1.2% Private Investment Cornpany fo'r Asia S.A., Panama CityIPanarna US$ 29.0 m. 0.7% ",- Societe lnternationale Financikre pour les lnvestissements et le Develoripement en Afriaue S.A. (SIFIDA). Luxemboura US$ 15.8 m. 0.6% UBS - D0 Corporation, New York US$ 0.1 m. 50.0% Security issuing, other syndicate transactions and listings on the stock exchange 107

Dornestic bond issues of public authorities

81/4%, 8%, 71/2%, 71/4% and 7% bond issues of the 81/2%, 8%, 71/2% and 7% annuity and Bundesrepublik Deutschland of 1976 communal bond issues as well as 8'14% and 8% bond issues of the Deutsche Bundesbahn mortgage bonds of the Deutsche of 1976 Siedlungs- und Landesrentenbank 71/2% bond issue of the Freistaat Bayern of 1976 - lssues 145, 150-155, Series 24-32 - ii/,% bond issue of the Land Berlin of 1976 8% bond issue of the Kreditanstalt für 8% bond issues of the Land Nordrhein-Westfalen Wiederaufbau of 1976 of 1976 8% and 73/4% bond issues of the 8% bond issue of the Land Schleswig-Holstein of 1976 Lastenausgleichsbank of 1976 - lssues 16,17-

Other domestic bond issues, mortgage and communal bonds

Deutsche Hypothekenbank (Actien-Gesellschaft) Schiffshypothekenbank zu Lübeck Aktiengesellschaft Kaufhof Aktiengesellschaft

Convertible and option bonds of domestic and foreign issuers denominated in Deutsche Mark: Komatsu Ltd. Sekisui Prefab Homes, Ltd. Mitsubishi Chemical lndustries Limited denominated in foreign currencies: Bührmann-Tetterode Antilliana N.V., Curacao Mitsubishi Heavy Industries, Ltd. Compagnie Financiere de Paris et des Pays-Bas Nationale-Nederlanden Finance Corporation (Curacao) N.V. Credit Suisse (Bahamas) Limited Sandoz Overseas Limited The Daiei, Inc. Sumitomo Metal Industries, Ltd. Marui Co., Ltd. Union Bank of Switzerland (Luxembourg) Mitsubishi Corporation

Bonds of foreign issuers denominated in Deutsche Mark: ADELA Investment Company S.A. Beecham Financiering B.V. AKZO N.V. Föderative Republik Brasilien ARBED FINANCE S.A. Caisse Centrale de Cooperation Economique Asiatische Entwicklungsbank Caisse Nationale des Telecommunications AUMAR Autopistas del Mare Nostrum, S.A., Companhia Vale do Rio Doce Concesionaria del Estado Königreich Dänemark Australian Shipping Commission Den Danske Bank af 1871, Aktieselskab Australien ESTEL NV Banco Nacional de Obras y Servicios Publicos, S.A. EUROFIMA Europäische Gesellschaft für die Finanzierung Banque Francaise du Commerce Exterieur von Eisenbahnmaterial BEC FINANCE N.V. Europäische Gemeinschaft für Kohle und Stahl Europäische lnvestitionsbank Stadt Kopenhagen Europäische Wirtschaftsgemeinschaft Stadt Malrno Republik Finnland Stadt Montreal FRANCETEL Societe Francaise de Financement des Neuseeland Telecornrnunications S.A. Nippon Telegraph 8i Telephone Public Corporation Girozentrale und Bank der österreichischen Sparkassen Norgcs Kornmunalbank Aktiengesellschaft Norpipe a.s Guest, Keen and Nettlefolds Finance B.V. Norsea Gas A/S Hitachi Zosen Kabushiki Kaisha Norsk Hydro a.s I.C.I. lnternational Finance Lirnited Konigreich Norwegen Inter-Amerikanische Entwicklungsbank Republik Osterreich Internationale Bank für Wiederaufbau und Entwicklung Petroleos Mexicanos (Weltbank) Red Nacional de los Ferrocarriles Espanoles Republik Irland Singapore Airlines Lirnited The Japan Developrnent Bank Societes de Developpernent Regional Aktieselskabet Kjobenhavns Handelsbank Vereinigte Mexikanische Staaten Stadt Kobe Wiedereingliederungsfonds des Europarates für die Kornrnunl~neinstitutctAkticbolag nationalen Flüchtlinge und die Überbevölkerung in Europa denominated in foreign currencies: AKZO N.V. Dow Chemical Overseas Capital N.V. Alurninum Company of Canada, Lirnited DSM (Naamloze Vennootschap DSM) Alusuisse lnternational N.V. Du Pont of Canada Limited Amsterdain-Rotterdam Bank N.V. The Electricity Council Australian Shipping Comrnission Enso-Gutzeit Osakeyhtiö Australien ESTEL NV Automobiles Pcugeot EUROFIMA Europäische Gesellschaft für die Bank of Montreal Finanzierung von Eisenbahnmaterial Ttie Bank of Tokyo, Ltd. Europaische Gemeinschaft für Kohle und Stahl Banque Francaise du Commerce Exterieur Europäische lnvestitionsbank Bell Canada Europaische Wirtschaftsgerneinschaft The Bowater Corporation Limited Finnish Export Credit Ltd. Brascan lnternational Capital Corporation Ford Motor Credit Cornpany Föderative Republik Brasilien Ford Motor Credit Company of Canada. Limited British Gas Corporation Fruehauf International Limited Caisse Nationale des Autoroutes General Motors Acceptance Corporation of Canada, Calgary Power Ltd. Limited Canada Permanent Mortgage Corporation AB Gotaverken Canada Trustco Mortgage Company Greater London Council Canadian National Railway Cornpany Groupement de I'lndustrie Siderurgique Canadian Pacific Securities Lirnited Gulf & Western lnternational N.V. Charbonriayes de Frarice Hamersley Holdings Limited Cornpaynie Financiere Michelin Overseas N.V. Home & Oil Company Lirnited Cornpagnie Francaise des Petroles Hydro-Quebec Compagnie Nationale du Rhßne IAC Limited Credit Foncier Franco Canadieri lndustrial and Mining Development Barik of Iran Credit National The Industrial Bank of Japan, Lirnited Königreich Dänernark lndustrialization Fund of Finland Ltd. International Harvester Credit Corporation Stadt Oslo of Canada Limited Pakhoed Holding N.V. ISE Canadian Finance Ltd. PanCanadian Petroleum Lirnited Ishikawajima-Harima Heavy Industries Co., Ltd. Pechiney Ugine Kuhlmann C. ltoh & Co., Ltd. N.V. ' Gloeilampenfabrieken K mart (Australia) Financc Limited Pierson, Heldring & Pierson N.V. Kockums Mekaniska Verkstads Aktiebolag Polysar Limited Stadt Kopenhagen Ports Autonomes The Long-Term Credit Bank of Japan Limited The Provincial Bank of Canada Manufacture Francaise des Pneumatiques Michelin Provinz Quebec Massey Ferguson Nederland N.V. Red Nacional de los Ferro'carriles Espaiioles Midland lnternational Financial Services B.V. Rhöne-Poulenc S.A. Mitsui Engineering & Shipbuilding Co., Ltd. The Royal Bank of Canada Mitsui Mining & Smelting Company, Limited The Royal Trust Company Mortgage Corporation Mo och Domsjö Aktiebolag RoyMor Lld. Municipal Telephone Company of Funen RoyNat Ltd. Nacional Financiera S.A. Sandvik Aktiebolag National Coal Board Provinz Saskatchewan National Westminster Bank Limited The Seagram Company Ltd. Neuseeland Showa Line, Ltd. Provinz New Brunswick Skandinaviska Enskilda Banken The New Brunswick Electric Power Commission Simpsons-Sears Acceptance Company Limited Newfoundland Municipal Financing Corporation Societe Firianciere Europeenne The Nippon Fudosan Bank, Limited Societe Financiere Internationale Renault Nissho-lwai Co., Ltd. ,,SOFINRENUS.A. (Renault Acceptance) Noranda Mines Limited Södra Skogsägarna Aktiebolag Norges Kommunalbank South of Scotland Electricity Board Norpipc a.s Republik Südafrika Norsk Hydro a.s Sparbankernas Bank AB Königreich Norwegen Svenska Handelsbanken Provinz Nova Scotia Swedish Export Credit Corporation N.Y.K. lnternational Luxembourg S.A. Sydsvenska Kraftaktiebolaget Republik Österreich Telefonaktiebolaget LM Ericsson Offshore Mining Company Limited Texasgulf Canada Ltd. OKI Electric Industry Company, Limited Thc Toronto-Dominion Bank Olivetti International S.A. Union Carbide Canada Lirnited Ontario Hydro Stadt Vancouver Orient Leasing (Caribbean) N.V. Vereinigte Mexikanische Staaten

Domestic shares

Adt Aktiengesellschaft Augsburger Kammgarn Spinnerei Aktiengesellschaft Kühnle, Kopp & Kausch Badische Bank Allgäuer Alpenmilch Aktiengesellschaft Badische Gas- und Elektrizitätsversorgung Allgemeine Deutsche Credit-Anstalt Aktiengesellschaft Allgemeine Elektricitäts-Gesellschaft AEG-TELEFUNKEN Balcke-Dürr Aktiengesellschaft Allianz Versicherungs-Aktiengesellschaft BASF Aktiengesellschaft Bayer Akticngcsellschaft Kraftwerk Altwürtternberg Aktiengesellschaft Bayerische Hypotheken- und Wechsel-Bank Kraftubertragungswerke Rheinfelden Bayerische Motoren Werke Aktiengesellschaft KWS Kleinwarizlebener Saatzucht Aktiengesellschaft Baycrischc Vereinsbank vorm. Rabbethge & Giesecke Berlinische Feuer-Versicherungs-Anstalt Liquidations-Casse in Hamburg Aktiengesellschaft Beton- und Monierbau Aktieri-Gesellschaft Lombardkasse Aktiengesellschaft Biewag Investitions-Aktiengeschaft Löwenbrauerei - Böhmisches Brauhaus Aktiengesellschaft Brauerei Cluss Magdeburger Rückversicherungs-Actien-Gesellschaft Brerner Vulkari Schiffbau und Maschinenfabrik Aktiengesellschaft Colonia Lebensversicherung Aktiengesellschaft Mannheirner Versicherungsgesellschaft Concordia-Chemie Aktiengesellschaft Mercedes-Automobil-Holding Aktiengesellschaft Deutsche Babcock Aktiengesellschaft MEZ Aktiengesellschaft Deutsche Dampfschifffahrts-Gesellschaft ,,Hansau Motorenwerke Mannheim Aktiengesellschaft Deutsche Hypothekenbank vorm. Benz Abt. stat. Motorenbau Die Blauen Quellen Fritz Meyer B Co. Münchener Rückversicherungs-Gesellschaft Akticngcscllschaft Neckarwerke Elektrizitätsversoraungs-Aktiengesellschaft Dortrnunder Union-Schultheiss Brauerei Otavi Minen AG Aktiengesellschaft PWA Papierwerke Waldhof-Aschaffenburg Einkaufskoritor Stuttgart des südwestdeutschen Aktiengesellschaft Nahrungsrnittelgrosshandels - Aktiengesellschaft Schering Aktiengesellschaft ERBA Aktiengesellschaft für Textiliridustrie Schubert 8 Salzer Maschinenfabrik Aktiengesellschaft Frankona Rück- und Mitversicherungs- Siemens Aktiengesellschaft Aktien-Gesellschaft SR Beteiligungen Aktiengesellschaft Gelsenwasser Aktiengesellschaft Stollwerck Aktiengesellschaft Arn. Georg Aktiengesellschaft Otto Stumpf Aktiengesellschaft Gutehoffnungshütte Aktienverein Stuttgarter Hofbräu Aktiengesellschaft Hacker-Pschorr Bräu Aktiengesellschaft August Thyssen-Hütte Aktiengesellschaft Hannoversche Papierfabriken Alfeld-Gronau Thyssen Industrie Aktiengesellschaft vorm. Gebr. Woge VARTA Aktiengesellschaft Hapag-Lloyd Aktiengesellschaft Vereinsbank in Nürnberg Hartmann 8 Aktiengesellschaft Westfälische Zellstoff Aktiengesellschaft Henninger-Bräu Kommanditgesellschaft auf Aktien Württernbergische und Badische Versicherungs- Fr. Hesscr Maschinenfabrik Aktiengesellschaft Aktiengesellschaft Hussel Holding Aktiengesellschaft Württembergische Hypothekenbank Industrie-Werke Karlsruhe Aktiengesellschaft Wurttembergische Metallwarenfabrik Klöckner-Humboldt-Deutz Aktiengesellschaft

Foreign sharec

Amsterdarn-Rotterdam Bank N.V. Diarnond Sharnrock Corporation Atlas Copco Aktiebolag Fisons Lirnited Bank America Corporatiori Fujitsu Lirnited C. T. Bowring & Co. Limited Imperial Chemical lndustries Lirnited Compagnie Bruxelles Lambert pour la Finance et Kornatsu Ltd. I'liiductrie S.A. Lucas Indcistries Limited Compagnie Financiere de Suez S.A. Mitsubishi Chemical lndustries Lirnited Consolidated Gold Fields Limited National Westminster Bank Limited Nortoti Simori Inc. Selection Trust Limited Nippon Meat Packers, Inc. Steyr-Daimler-Puch Aktiengesellschaft Reed International Limited Taisho Marine and Fire Insurance Company, Limited Renown lncorporated TDK Electronics Co., Ltd. The Rio Tinto-Zinc Corporation Limited Telefonaktiebolaget LM Ericsson Rolinco N.V. Thomson-Brandt S.A. Rotterdamsch Beleggingsconsortium N.V. United Technologies Corporation Schweizerischer Bankverein Aktiebolaget Volvo Regional Advisory Councils

Advisory Council of Bielefeld Dr.-lrig. Max Gennerich, Partner arid Managing Director, Wilhelm Karrnariri, Ctlairrria~i, Mcssrs. Windmoller & Hölsctier, Lengerich (Westf.) Partner and Managing Director, Wilhelm Karmann GmbH, Osnabruck Dipl.-lng. Edgar Georg, Cliairiiiari of tlic Partncrs' Committcc, Heridrik E. van Delderi, Deputy CI7alrrnar1, Messrs. A. Friedr. Flender GmbH & Co. KG, Bocholt, Nciterseri Partner iri Gerrit van Delderi & CO., Gronau (Westf.) Helmut W. Günther, Mariagiiig Dircctor, Dipl.-Kfm. Hans A. Barthelmeh, Messrs. Bischof & Klein, Lengerich (Westf.) Ctiairniari of tlic Board of Managirig Directors, Gilderririster AG, Biclcfeld Claus Kümpers, Pcrsonally liable partner of Dipl.-Kfm. Ehrenfried Brandts, F.A. Kümpers KG, Rtieiric (Westf.) Partricr and Managing Director, Messrs. Hcrmanri Windel, Wiridelshlciche Dipl.-Holzwirt Otto Künnemeyer, Partricr and Managing Director, Erich Cociieii, HORNITEX WERKE Gebr. Küririemeyer, Horn-Bad Meinberg Mcriibcr of the Supervisory Board, Gerrriariia-Epc Spinnerei AG, Epe (Westf.) Konsul Rudolf , Partncr in Miele & Cie., Gütersloh Dr. Jürgen Deilmann, Merriber of thc Board of Managing Directors, Otto Müller-Habig, C. Deilmariri AG, Berithcini Mernber of the Siipervisory Board Wcstfalia Separator AG, Oelde (Westf.) Rembert van Delderi, Mcniher of tlie Board of Mariagirig Direclors, Dipl.-lng. Reinhard Röpke, Textilwerke Aliaiis AG. Aliaus (Wcstf.) Partrier and Managirig Dircctor in Westfälische Mctnll Industrie KG Hueck & Co., Lippstadt Victor Dierig, Manaying Director, Dr. Heinz Rössler, F. H. Hanimcrsen GmbH, Osnabruck General Manager of Erica Rösslerl Modische Strickerei GrribH/Heiriz Rösslcr & Söhnc KG, Richard Dohse, Osnabruck Partner in Rictiard Dohse 8, Sohn oHG, Bielefcld Peter Scheiwe, Heinz Dyckhoff, Partner anti Mariagirig Director, Partncr in Mcssrs. Ostermanri & Sctieiwe, Messrs. Dyckhoff 11 Stoevekeri, Baurriwoll-Spiiiricrci. Münster (Wcstf.) Rheirie (Wcstf.) Carl-Hinderich Schmitz, Horst Frenzel, Partner in Sctiniitz-Werke KG. Einsdetten Managing Director, Errigas-Verkaufs-Gesellschaft rrit)H, Dipl.-Volkswirt Friedrich Schütte, Murister (Westf.) General Manager, Bekleidungswerke Erwin Hucke oHG, Jürgen Frömblirig, Lubbecke-Nettelstedt (Wcstf.) Partrier arid Managing Director, "Ihr Platz", Osriabrück Dr. Werncr Schulten, Parliicr in Gehr Schulten, Südlohri (Wcstf.) Konsul Hans Gcorg Gallenkamp, Manaying Dircctor, Dipl.-Kfm. Carl Erdwin Starcke, Fclix Schueller jr. Feinpapierfabrik, Partrier and Managing Director of ttie Osnahrück Starcke Gruup, MelleIHanovcr Rudolf Stclbrink, Werner Klemeyer, General Manager, of Scipio & Co., Bremcn Rudolf A. Octker Zentralverwaltung, Bieleleld Dipl.-lng. Friedrich Koch, Ernst F. Theis, Managing Director of DESMA-Werkc GmbH, Achim Bez. Managing Director of FOSECO Bremen Gesellschaft für Chemisch-Metallurgisctie Erzeugriisse mbH, Borkeri Konsul Dr. Friedrich Kristinus, Chairman of the Supervisory Board, Dipl.-Kfm. Norbert Vossen, Martin Brinkmann AG, BremerilHaniburg Partner and Mariaging Director, Frottierweberei Vosscn GmbH, Gütersloh Dr. rer. pol. Gerhard Lofink, Membcr of the Board of Managing Directors, Olympia Werke AG, Wilhelmshaven

Dr. Karl Mahlert, Advisory Council of Bremen Managing Director of Brauerei Beck & Co., Brcmcn

Karl-Heiiiz Lange, Chülrrnari, Dipl.-lng. Hcrmann L. Meride, of Messrs. Albrecht, Muller-Pearse R Co., Bremen Partner ar'id Managing Dircctor of Norddeutsctie Meride Riiridfiirik KG, Brcriicn Dipl.-Volkswirt Dr. rer. pol. Heiriz Ache, Spokcsman of ttie Board of Managing Directors Hermanri Noe, of Akticn-Gesellschaft "Wescr", Bremen Chairman of the Board of Mariagirig Directors, Schichau Unterweser AG, Brerrierhaveri Carl-Diedrich Baumeister, Chairman of ttie Advisory Council, Dipl.-Kfrn. Heinz Rust, Aiigiist Brötje Werke flir Heizungstectiriik, Rastcde i. 0. Ctiairrrian of thc Board of Managing Directors, Bremer Woll-Käninierei, Brerrieri-Blumcnthal Kurt A. Bcchcr, of Kurt A. Bcchcr, Bremer) Henry S. Thomas, of Fuhrmann & Co. KG, Bremeri Dipl.-Kfm. Walter Behrmann, Member of ttic Board of Managing Dircctors, Carl Max Vater, Deutsche Schiffahrtsbank AG, Brenieri of C. Wuppesahl, Bremcn

Friedo Beriiinghausen, Helmut Wilkens, of Messrs. Steinbrugge & Bernirighausen, Bremeri-Holzhafen Member of the Board of Managing Directors, Wilkens Bremer Silbcrwarcn AG, Bremeri Generalkonsul Karl-Hillard Geuther, of Karl Geuther & Co., Brerrien Hubert Wulf, Sole proprietor of ADO Gardiiieiiwerkc Hubcrt Wulf, Hermanri C. Helms, Papenburg Chairman of the Board of Mariaging Directors, Deutsche Darripfschifffahrts-Gesellschaft "Hansa", Bremen

Heinz-Werner Hernpel, Advisory Council of Cologne of F. W. Herripel R Co. - Erze lind Metalle - (GmbH & Co.), Bremen Professor Dr. Dr. h. C. Petcr Ludwig, Chairman, Partner arid Chairman of the Management Board, Dr. Jap-Jürycri Japperi, Leonard Monheim, Aachcn Chairman of the Board of Managing Directors, SECURITAS Bremer Allgcmcinc Vcrsichcrungs- Korisul Dr. Jean Louis Schrader, Deputy Chairman, Aktiengesellschaft, Bremen Aacheri/Briissels Konsul Dr. Paul Ernst Bauwens, Dr. John-Werner Madaus, Partncr and Managing Director, Partner and Managing Director of Dr. Madaus & Co., Peter Bauwens Baiiiintcrnehmung, Cologne Cologne

Oberforstmeister Hermann Behncke, Jaspar Freiherr von Maltzan, General Manager of the Fürstlich Sayii-wittgenstein- Partner in Pfeifer & Langen, Colognc Bcrlcburg'sche Verwaltung, Bad Berleburg Rolf Mauser, Dr. Knut Bellinger, Partner and Managing Director, Partncr and Chairman of the Management Board, Mauser-Werke KG, Brühl H. Dycktioff, Cologne Ferdinand Mülhens, Jan Brügelmann, of Eau de Cologne- & Parfümerie-Fabrik Partner and Managing Director of Glockcngasse Nr. 4711 gegenüber der Pferdepost Messrs. F. W. Briigclmann Söhne, Cologrie von Ferd. Mülhens, Cologne

Professor Dr. Fritz Burgbacher, Dr. Petrus A. Neeteson, Colognc General Manager of Compagnie de Saint-Gotiairi Pont-a-Mousson in Deutschland, Bergassessor a. D. Dietrich Buss, Chairman of the Managing Board of ttie Alfred Neven DuMont, Snphia-Jacoba Gcwcrkschaft, Huckelhoven Partner and General Manager of M. DiiMont Schaiiberg, Cologne Paul Falke, Partner and Managing Director of the Werner Niederstein, Falke Group, Schmallenberg Chairman of the Board of Managing Directors, SAG Sicgener AG,Siegen-Geisweid Dr. Nikolaus Fasolt, Partner and Managing Dircctor, Wcssel-Wcrk GmbH, Bonri Josef Pracht, Partner in Spedition Pracht KG, Haiger (Dillkreis) Dr.-lng. E. h. Erwin Gärtner, Colognc Gerd Prawitz, Partner and Managing Director, Messrs. W. Ernst Haas R Dr. Fritz Gläser, Sohn, Sinn (Dillkreis) Metnber of thc Board of Managing Directors, RHENAG Rhcinischc Energie AG,Cologne Gerd Proenen, Partiier aiid Managitig Dircctor, Heinz Heudorf, Messrs. Bierbaum-Proerieri, Cologtie Hilchenbacti-Dahlbr~~chKrs. Sicgcn Dieter Prym, Hans E. Holzer, Partncr and Managing Director of the Member of the Board of Managing Directors, Williani Prym-Wcrkc KG, Stolberg (Rlild.) Dynamit Nobel AG, Troisdorf Johannes Puhl, Helmut Kranefuss, Member of ihe Board of Mcinagiiig Dircctors, Dortmund Otto Wolff AG, Cologrie

Dr. Rolf Lappe, Dr. Eberhard Reichstein, Chairman of the Management Board, Mcmber of the Board of Managing Directors, A. Nattermann & Cic. GmbH, Cologne Deutsche Ceritrallioderikredit-AG, Cologne

Dipl.-Berginy. Hans Lindemann-Berk, Dipl.-Kfm. Gunter Reiss, Partner and Managing Director of Quarzwerke GmbH, Member of the Board of Managing Directors. Frechen Strabag Bau-AG, Cologne Fricdrich Roescti, Dr. Johann Wilhelm Zariders, Mciiibcr of the Board of Mariagirig Directors, Cliairman of the Advisory Couricil, Kauftiof AG, Cologne ZANDERS Feiripapierc GmbH, Bergisch Gladbacli arid Düren, Friedrich Schadeberg, Bcrgisch Gladbach Partner and Gerieral Managcr of the Kronibacher Braucrci Bcrnhard Schadetierg GnihH & Co., Krcciztal-Krombach Krs. Siegeri Advisory Council of Düsseldorf Dipl.-Kfm. Werner Schuhmacher,

Memlier uf itie Roard of Managing Directors, Dr. h. C. Ernst Wolf Mommscn, C17alrrnar1, Stahlwerke Siidwcstfaleri AG, Siegen Dusseldorf

Dr. Rolf Selowsky, Erich Selbach, Deputy Chairman, Mcmber of ttie Board of Managing Directors, Ctiairnian of the Supervisory Board, Girmes-Werke AG, Klöckner-Hurriboldt-Dcutz AG, Cologrie Grefi-atti-Oedt (Rtild.)

Waltcr Siriri, Professor Dr. Viktor Achter, Mcmbcr of the Board of Mariagirig Directors, Wcstdcutsche Handelsgesellsctialt Gehr. Sinn AG, Partner and Managing Director of Viktor Achter GmbH & Co., Coloqnc Viersen - Dülkeri Gustav Band, Herbert Wahlcn, Member of itie Boarrl of Managirig Dircctors, Partner nnd Managing Director, Gcrresheirrier Glas AG, Diisseldorf Messrs. Liridgens & Söhne GmbH & Co, Cologne Dr. Dr. Jörg Bankmann, Peter Weiher, Mernber of the Board of Managing Directors, Ctiairrriari of tlic Managing Board, Thysseri Vermögensverwaltiiiig GinbH, Düsscldorf Foi-d-Werke AG, Colognc

Anton Weiler, H. J. E. van Beuningen, Merriber of thc Supcrvisory Board, Mciiibcr of the Board of Managirig Directors, Pakhoed N. V., Rotterdarri (Ncihcrlands) Gcrling Group, Cologric

Dr. Franz-Josef Weitkemper, Dr. Marcus Bierich, Mcinber of ~ticBoard of Managing Directors. Merriber of the Board of Managirig Dircctors, Bayer AG, Leverk~isen Manriesiiiaiiil AG, Dusseldorf

Dipl.-Kfm. Dieter Wendelstadt, Lco Braiid, Ctiairrriari of the Board of Maringing Directors, Paitner and Mariaging Dircctor. COLONIA VERSICHERUNG AG, Cologne Brand GmbH R Co. KG, Ncuss

Dr. Atidreas Wirtz, Fritz Brandi, Partrier arid Managing Director, Cliairnian of thc Managerrierii, ELF MINERA1,OEL Gmtiki, Dalli-Werke Mäiirer 8 Wirtz, Stolberg (Rlild.) D~isseldorf

Dieter Wolf, Niels V. Bülow, Mariagirig Director of Wolf Gei-ate GmbH, Bet~dorf(Sieg) Hoiiorary Chairman of ttie Supervisury Board. Gerrestieirner Glas AG, Düsselrlorf Dipl.-lng. G. Theodor Wuppcrmarin, Partner arid Mariagirig Dircctor, Dipl.-lng. Eduard H. Dörrenberg, Theoclor Wupperrridriri GnibH, Lcvcrkusen Partner in Messrs. Rotidc & Dörrcnbcrg, Düsseldoi-f Dipl.-Kfm. Wilhelm Fehler, Dr. Artur Schmidt, Merriber of ttie Board of Managing Directoi-s, Partiicr and Managing Directnr of Muskator-Wcrkc Heiri, Letirriariri AG, Dusseldorf Hcriiiaiiii Schmidt GmbH & Co. KG, Diisscldorf

Ernst Fischer, Professor Dr.-lng. Günther Schwietzke, Partner in Partner in J. G. Schwietzke Metallwerke, Düsseldorf Mcssrs. G. Bcckcrs & Le Haririe, -Hüls Dieter Siempelkamp, Dr. h. C. Albert J. Greiner, Partncr niid Mariaging Director of Chairrrian of ttie Mariagemerit Board, G. Sicmpelkamp GmbH & Co., Maschinenfabrik, Krcfcld Rarik Xerox GrribH, Diisseldorf Dr. Hans Spilker, Konsul Rudolf Grolman, Cliairman of the Supcrvisory Board, Proprietor of Gustav Grolnian, Dusseldorf GfE Gesellschaft für Elcktromctalliirgie nibH, Dusseldorf Bernd Hebbering, Dr. Friedrich Stockhausen, Merriber of tlie Board of Marlacjirig Directors, Partncr and Mariaging Director, Horteri AG, Dusseldorf Ctierriisctie Fabrik Stockhausen ß Cic., Krefcld Jarl Kleiriewcfers, Partner and Managing Dircctor of Kleincwefcrs GmbH, Dipl.-lng. Hermann Storm, Krcfcld Partrier in Messrs. Schmolz + Bickenbach, Dusseldorf

Dipl.-Kfrn. Otto Klötzer, Jürgen R. Thurnann, Chairman of ttie Mariagerrierit, Matiagirig Director, Gustav Hoffmann GmbH, Kleve (Rhld.) Mcssrs. Hille & Müller, Düsseldorf

Dr. Heinz Mittag, Emil Underberg, Chairman of ttie Supervisory Board, Dr Carl Hatiri, GmbH, Partner arid Managing Director, Düsseldorf Uriderberg oHG, Rtieinberg (Rtild.)

Caspar Monforts von Hohe, Dipl.-lng. Albrecht Woeste, Partrier iri A. Moriforts Mascliincnfabrik. Monchcrigladt)act~ Partner in R. Woeste & Co., Düsseldorf Edgar Pfersdorf, Dipl.-lng. Eduard Robert Zapp, Ctiairmari of ttie Board of Managing Directors, Partiicr in Robcrt Zapp, Düsscldorf Langbein-Pfanhauser Wcrke AG,

Dr. Lothar Pohl, Memher of the Supervisory Board, Vereinigte Seidenwebereien AG, Krefeld Advisory Council of Essen

Werner P. Roell, Josef Fischer, Chairman, Chairman of the Supcrvisory Board, Member of the Superisory Board, Jagenbcrg-Wcrkc AG, Dusseldorf Hoesch AG. Dortmund

Dr.-lng. Ernst Theodor Sack, Dr. Herbert Gienow, Deputy Cha~rmati, Partner and Managing Director. Ctiairmari of ttie Board of Managiriy Directors, Mascliinenfabrik Sack GmbH, Düsseldorf Klockner-Werke AG, Duisburg

Hellmuth Scheibler-Meurer, Dipl.-lng. Hans-Wolf Aengeneyndt, Partner arid Mariagitig Director, Partner and Managing Dircctor, Scheibler Peltter & Co., Krefeld J. H. Schmitz Söhne-Gruppe, Duisburg Dipl.-lng. Walter Alferi, Rolf R. Herklotz-Delaitte, Member of thc Board of Managinq Directors, Chairman of the Management Board Gluckauf-Bau-AG, Dortniund of Leichtmetall-Gesellschaft mbH, Essen

Karl Bach, Dipl.-Kfm. Klaus Hill, Mcmbcr of the Scipervisory Board, 0 & K Managing Director, Hcinr. Hill GmbH, Oreristeiri & Koppel AG, Dortmund Hattingen ()

Harald von Bohlen und Halbach, Heinz-Dieter Hoffmann, Esseri Member of ttie Management Board of Franz Hanicl & Cie. GmbH, Duisbiirg Hans-Heiriz Boos, Spokcsman of the Board of Mariaging Directors, Konsul Karl Holsleiri, Ttiysscn Edclstnhlwcrke AG, Dusseldorf Hoiiorary Chairman of the Siipervisory Board, Flactiglas AG DELOG-DETAG, Gelserikirchcn Rudolf Brickenstein, Managing Director, W. Brugrriariti & Sohn GmbH, Dortmund Theodore Kaas, Presiderit of SIDECHAR, Paris, arid Memhcr nf the Board Dr. Walter Deuss, of Managirig Directors of Harpener AG, Dortmiirid Member of the Board of Managing Directors, Karstadt AG, Essen Dipl.-Kfm. Hans Eberhard Klocpfer, Partner and Managirig Director, W. Dbllken & Co. GnihH, Friedrich Carl Erasmus, Esseri Member of ttie Board of Managing Directors, Rcilirkohle AG, Esseri Dr. Leo König, Partner in König-Brauerei KG, Diiisburg Dipl. SC. pol. Hans L. Ewaldsen, Ctiairrrian of the Board of Managing Directors, Deutsche Dr. Karl Köcsel, Babcock AG, Oberhaiiseti (Rhld ) Chairman of the Boards of Managirig Directors, Volkswohl-Bund Lebensversicherurig d. G. and Heinrich Frorrirnknecht, Volkswohl-Bund Sactivcrsichcrung AG, Dortrriiirid Chairman of the Boards of Managing Dircctors, Sigrial-Vcrsicheruiigeri, Dortniiitid Dr. Klaus Kuhn, Membcr of the Board of Managing Directors, Dr. Günther Frucht, A~igiistTliysscn-Hütte AG, Duisburg Merritier of thc Board of Mariagirig Dircctors, Dr. Hans-Helmut Kuhnke, VEBA-Cheniie AG, Gclscnkirclien Haliirigcn (Ruhr) Dr. Walter Griese, Dr. Klaus Licsen, Chairman of the Board of Managing Directors, Ctiairnian of the Board of Managing Directors, Flachglas AG DELOG-DETAG, Gelserikirctieri Ruhrgas AG, Essen Karl Hauffe, Dr. Huberlus Müller von Blumencron, Merriber of thc Board of Mariagirig Dircctors, Chairman of ttie Board of Managing Dircctors, Glas- iitid Spicgcl-Manufac~urAG, Gclscnkirclien Diiisbcirger Kupferhuttc, Duisburg

Wilhelm Haverkamp, Dipl.-Kfm. Karlheinz Portugall, Mcnibcr nf tlic Board of Managing Directors, Member ol ttic Board of Mariaging Directors, Ferrostaal AG, Essen Vereinigte Elel

Robert Heitkamp, Helmut Raiser, Proprietor of Bauunterrichmung E. Hcitkamp GmbH, Managirig Director, Hernc-Wanne-Eickcl Botileri Industrie GmbH, Essen Dr.-lng. Wolfgariy schaefers, Advisory Council of Frankfurt Ctiaii-rnari of ttie Board of Managing Directors, Ttiysseri Industi-ie AG, Essen

Fricdrich Arnhard Schcidt, Konsul a. D. Fritz Dietz, Chairman, Kcttwig Propriclor oi Gehr. Dietz, Frankfurt (Main)

Dipl.-Kfm. Hans-Georg Schluchtrnanri, Dr. Otto Ranft, Deputy Cha~rrnan, Merriber of tlic Board of Managing Direclors, Meiiiber of ttie Board of Mariaging Directors, Eiseri urid Metall AG, Gelscnkirclicn Hoechsi AG, Frankfiirt (Main)-Höchst

Dr. Dr. h. C. Richard Schulte, Dr. Hans Albers, Dortmund Merriber of the Board of Managing Dircctors. Carl Schenck AG, Darmstadt Dr.-lng. Albrecht Schumann, Dr. Victor Baillou, Chairrriari of ttie Board of Managing Directors, Merriber of ttie Management Board and Partner of Hoctitief AG fur Hoch- und Tiefbauten E. Merck, Darmstadt formerly Gebr. Helfniann, Essen Dipl.-Kfm. Dr. jur. Martin Bieneck, Dipl.-Kfm. Karl Stein, Chairman of thc Board of Managiriy Direclors, Didier-Werke Mcnihnr of lhc Board of Mariagirig Directnrs, AG, Wicsbadcn Stcrri-Braiicrci Carl Fvtike AG, Esscri Severino Chiesa, Hans Walter Stürtzer, Managirig Direclor of Ferrero GmbH, Frankfurt (Main) Mnniticr of itie Board of Manacjing Dircctors, Riihrclierriie AG, Oberhausen (Rlild.) Carl Ludwig Graf von Deym, Chairman of the Board of Managing Directors, Dr.-lng. Errist Joachim Trapp, Papicrfabrik Obcrschmitten W. & J. Moufarig AG, Partnei- iri F. C. Trapp Bauuritertichmung, Wesel Chairnian of the Supervisory Board, Maria Soell GnibH, Dipl.-lng. Hans Uhde, Nidda-Oberschmitten (Oberhesscn) Chairman of tlie Managerrierit, Friedrich Uhdc GmbH, Dortnitirid Dr. jur. Alexander Freiherr von Dörnberg Chairman of the Board of Managing Directors, Freiherr von Dr. Werner Voll, Dornberg'sclie Stiftung, Mariagirig Director, Burg Herzberg, Oberaula (Hessen) Walter Huridliausen KG, Schwerte (Ruhr) Dr. rer. nat. Hcinz-Gerhard Franck, Chairman of the Board of Managirig Directors, Dr. Benno Weimaiin, Riitgerswerke AG, Frankfurt (Main) Ctiairrriari of Itie Board of Mariagirig Directors, Gelseriwasser AG, Gelserikirctieri Dipl.-Kfm. Gerd Grabhorn, Memher of the Management, Dr. Hans Georg Willers, Messer Griesheim GmbH, Frankfurt (Main) Mcnibcr of tlic Board of Mariagirig Direclors, Stinncs AG, Miilhcirri (Riitir) Hermann Grurier, Member of the Board of Managing Directors, Dipl.-Kfm. Heinz Wolf, Dyckcrhnff Zcnicntwerke AG, Wiesbacieri Member of the Managernctit. Klocknei- It Co., Duisburg Otto Henkell, Karl-Wilhelm Zenz, Paririer arid Mariagirig Director of Henkell It Co., Mariagirig Director of Carl Spaeter GmbH, Duisburg Sektkellereieri, Wiesbaden-Biebricli Dr. W. H. Heraeus, Dr. Gustav von Metzler, Dcputy Chairman of ttie Supervisory Board, Partrier iri Barikliaus B. Metzler sccl. Sohn & Co., W. C. Heraeus GmbH, Hanaii Frankfurt (Main)

Eberhard von Heusinger, Dr. rer. nat. Hans Moell, Mcmber of the Board of Mariaying Dircctors, Deputy Chairman of the Board of Managirig Direclors, VARTA AG, Bad Homburg v.d. H. BASF AG, Ludwigshafcn

Dietrich Karg, Harro Moller-Racke, Managing Director of HERTIE Partner and Managing Director, Wareri- und Kauftiaiis GmbH, Frankfuri (Main) Firmengruppe Pott + Racke, Bingen (Rhein) Dr.-lng. Walter Kesselheim, Senator E. h., Deputy Chairman of thc Supervisory Board, Dr. Dietrich Natus, Pliilipp Holzmann AG, Frarikfurt (Main) Spokesrnan of ttie Main Managerrierit Board of Lurgi-Gesellschaften and Mcrriber of the Board Heribert Kohlhaas, of Managing Directors of Metallgesellschafi AG, Presideiit of Kraftco International and Fraiikfiirt (Main) Vice President of Kraft Inc., Glcnview/lll., USA Dipl. rer. pol. Axel Ribbe, Hans Werner Kolb, Chairman of the Board of Managerrient, Ctiairnian of the Board of Managing Directors, Kraft GmbH, Escliborn Buderus'sche Eisenwerke,

Rechtsanwalt Christian Ruppert, Dr. Juergcn Krackow, Member of the Board of Managirig Directors, Chairrnan of the Management, Cassella Farbwerke Mainkur AG, Frarikfurt (Mairi) Stahlwerke Röchlirig-Biirbach GinbH, Völklingen

Karl Heinz Krutzki, Harry Sammel, Chairman of ttie Board of Managing Directors, Wella AG, Darmstadi

Dipl.-Kfm. Dr. rer. pol. Helmut Schäfer, Hermann Kupczyk, Managing Director of Filzfabrik Fulda GiiibH. Fiilda Partner arid Managing Director of Fredenhaycn KG, Masctiirierifabrik. Offenbach Dr. Hans Schleussner, Dr, Wolfram Langer, Partner and Managirig Director of Staatssekretar a. D., BIOTEST-SERUM-INSTITUT GmbH, Frarikfurt (Main), President of the Deutsche Pfaridbriefnnstalt, Wiesbaden President of thc Admiriistrative Board of CEI.FA AG, Scliwyz, and FOLEX Dr. H. Schleussncr AG, Zurich, Robert Lavis, Frankfuri (Main) Partner arid Maiiaging Director, Stahlbau Michael Lavis Söhne, Offeribacti Gert Silber-Bonz, Chairman of the Board of Managirig Directors, Veiih-Pirclli AG, Dr. Günther Letschert, Hochst (Odenwald) Membcr of the Board of Mariayiriy Directors, Frankfurter Hypothekenbank, Frarikfurt (Main) Thomas E. Singer, Dr. Hans Meinhardt, Execiitive Vice President, Thr: Gillettc Company, Spokesman of ttie Board of Mariaying Direclors, Deputy Chairman of tlic Siipcrvisory Board. Liricie AG, Wiesbaden Braun AG, Boston/Kroiibcrg (Ts.) Dr. Otto Walterspiel, Dipl.-Kfm. Manfred Hopf, Chairman of ttie Board of Managinc] Directors. Member of the Board of Managing Directors, Kali und Salz AG, Klockner-Htitnboldt-Deutz AG, Cologne, Ctiairtiiat-i of the Board of Matiagirig Directors, Goltmadingen Wiritershall AG, Kasscl Werner Koehler, Dr. rer. pol. Karl von Winckler, Managing Director, Papierfabrik August Koehler AG, Ottobrunn Obcrkirch (Baden)

Dipl.-Kfm. Dr. oec. Gerhard Ziener, Dr. jur. Alexander Lüthy, Chairman of the Management of Rohm GmbH, Darrnstadt Member of the Group Manqgement, Georg Fischer AG, Schaffhausen

Paul Meyer, Advisory Council of Freiburg NeuwilenfThurgau

Dr. Helmut Winkler, Chairman, Prof. Dr. 01.-lng. E.h. Erich Pfisterer, Partner and Managing Director of Lauffenmiihle Freiburg (Breisgau) Gustav Winkler KG, Tietigeri (Hochrhcin)

Dipl.-lng. Dr. rer. pol. Wilhelm Binder, Dipl.-lng. Fritz Reichle, Mariagirig Dircctor of Member of the Board of Managing Directors, Birider-Maqnctc GrnbH, Villingen (Schwarzwald) Allweiler AG, Pumpenfabriken, Radolfzcll (Bodensee) Dipl.-Kfm. Hermann Brunner-Schwer, Stein am Rheiti Achatius Graf Saurma, President of the Fürstlich Furctenbergische Dr. Kurt H. J. Buttner, Gesamtverwaltung, Donaueschingen Ctiairrrian of thc Management Board, Byk Guldcn Lotriberg Chemische Fabrik GiiihH, Konstanz Dr. Hans-Peter Schär, Meiiiber of ttie Group Management, Ciba-Geigy AG, Basle Richard Dahlinyer, Partner and Managing Director, Rudolf Schuler, Ch. Dahliriger, Verpackungswerke, Lahr (Baden) Member of the Board of Managing Directors, Konsul Dipl. rer. pol. H. W. Dyllick-Brenzinyer, Gabriel Herose AG, Konstanz (Boderisee) Partner and Managing Dircctor of Brenzinger & Cie. GrnbH, Freiburg (Breisgau) Dipl.-lng. Rolf Steinbery, Member of the Board of Managing Directors, Georg Herbert Endress, Wehrle Werk AG, Enimendingen (Baden) Managing Director, Messrs. Endress + Haiiser GmbH 8 Co. KG, Gcrd L. Suter, Mess- und Regeltechnik, Ma~ilburg(Baden) Chairman of ttie Management Board, Ciha-Geigy GmbH, Wehr (Baden) Dipl.-Kfm. Dr. rer. pol. Martin Fahnauer, Managing Director of KIENZLE Apparate GmbH, Villingcn Heinrich Villiger, Horst R. Gütermann, Partner and Managing Director, Villiger Söhne GmbH, Cigarcttenfabrikeri, Partner in Messrs. Gütermann 8 Co., Tiengen (Hochrhein) Nähseidcnfabrikeri, Gutach (Breisgau)

Dr. jur. Franzjosef Hackelsberger, Dr. Gerhard Wiebe, Partner arid Managing Director of Partner in Auyust Faller KG, Graphische Kunstaristalt, Messrs. J. Weck & Co., Wehr-uflingen (Baden) Waldkirch (Breisgau) Dr. Hans Wirth, Dr. Norbcrt Herike, Managirig Direclor, Chairman of the Board of Managing Directors, Ph. Suchard GmbH, Howaldtswerkc-Dcutsche Werft AG Hamburg und Kiel, Kicl Schokoladcnwerke, Lörrach Paul J. Hoenmans, Chairman of ttie Board of Managing Directors, Mobil Oil A.G. in Deiilschland, Hamburg

Advisory Council of Hamburg Andreas Jepscn, Chairrriari of the Supervisory Board and of thc Board of Professor Dr. Rolf Stödter, Chairman, Managing Directors, Danfoss AIS, Nordborg, Denniark of Jotiri T. Essberger, Hamburg Gunter Kalbaum, Hans Jakob Kruse, Deputy Chairman, Chairman of the Board of Mariaging Directors, Spokesrriari of ttie Board of Managing Directors, Hamburg-Mannheimer Versicherungs-Akticn-Gesellschaft, Hapag-Lloyd AG, Hainhiiry Harnburg

Peter Aldag, Ernst-Peter Komrowski, of Olto Aldag, Hamburg of Ernst Kornrowski & Co., Harribiirg

Bernhard Arndt, Diplom-Bergingenieur Johan Kroeger, Chairman of the Board of Managitig Directors, Member of the Board of Managers. ALSEN-BREITENBURG Zement- und Kalkwerke GmbH, L. Possehl & Co. mbH, Lübcck Harritiurg Dr. Hellmut Kruse, Partner in Mcssrs. Wiechcrs & Helni. Hamburg Konsul Rudolf G. Baader, Partner and Managing Director, Nordischer Maschinenbau Dr. Herbert C. Lewinsky, Rud. Baader, L~iheck Prcsident of Mobil Europe Inc., London

Stefan Buchholtz, Harald List, Member of tlic Board of Manayitig Dircctors, Wohltorf L. Possehl & Co. mbH, Lübeck Norbert Lorck-Schierning, Chairman of ttie Supcrvisory Board. Georg W. Claussen, Pot1 i Racke GmbH 8 Co. KG, Flerisburg Chairman of the Board of Managing Directors, Ernst-Roland Lorenz-Meyer, Bciersdorf AG, Hamhury of Ernst Russ, Hamburg Herbert Dau, Dipl.-Kfm. Ewald Marby, Presidenl of tlic Hamburgisctie Bürgerschaft, Hamburq Member of the Board of Managirig Dircctors, Hemmoor Zement AG, Hemmoor (Oste) Wilfried H. Drescher, Dr. Horst Matthies, Mernber of the Board of Managing Directors. BASF Farben + Faserti AG, Harnburg Chairman of ttie Mariagetncnt, VTG Vereinigte Tanklager urid Transportmittel GmbH, Haiiiburg

Dr. Manfred Fischer, Jobst von der Meden, Chairrnan of thc Board of Manayirig Dircctors. Chairman of the Board of Managing Direclors. Gruner I Jahr AG & Co, Hamburg ALBlNGlA Versictierungs-AG, Hamburg

Dr.-lng. Dr.-lng. E. h. Rudolf Hell, Dr. Michael Otto, Ctiairnian of thc Supervisory Board, Metnbcr of the Board of Managing Directors, Dr.-lng. Rudolf Hell GmbH, Kiel Otto-Versand (GmbH & Co ), Hamburg Hellmuth Pax, Johannes C. Welberyen, Deputy Merriber of ttie Board of Managitig Dircctors, Cliairinaii of thc Board of Managirig Directors, Norddeutsctie Affirierie, Hambiirg Detitsclie Sliell AG, Hamburg

Liselottc V. Rantzau, Dipl.-Kfm. Peter Welsch-Lehmann, of Deiitschc Afrika-Linien G.m.b.H., Harriburg Managing Director ol SlHl GrribH 8 Co. KG, Itzehoe

Dr. Otto Ritter, Eberhard Wienholt, Chairmari of the Board of Managing Directors, ol Fritz Köstcr Handelsgesellschaft & Co., Hamburg Deutsche Texaco AG, Haiiiburg

Bernhard Rothfos, of Bernhard Rothfos, Hamburg Advisory Council of Hanover

Dipl.-Kfm. Rolf Saumann, Rechtsanwalt Hans-Joachim Götz, Chairman, Gencral Manager, Deutsche BP AG, Hatnburg President of ttie Charriber ol Indiistry and Commcrcc, Hanovcr-Hildeshcim, Hanover Gustav Schürfeld, Hans Herbert Munte, Deputy Chairrnar), of G. Sctiürfeld b: Co., Haiiibiirg Executive Vice Presidcnt of The Dipl.-Kfm. Horst Seidel, Coniinental Group Inc.. New York Gencral Manager, Messrs. Rud. Otto Meycr, Hambcirg Dr. jur. Ulrich Schallemacher, Deputy Chairman, Lolke Jan Smit, Mernber of the Board of Managing Directors, Chairman of ttie Matiageinent of Salzgitter AG, Salzgitter-Drütte Allgemeine Deutsche Ptiilips Iridiislrie GinhH, Hamburg Dipl.-lng. Hcinz Alten, Herbert Tiefenbacher, Chairman of the Management Board, Chairman of the Board of Managing Directors, Lirike-Hofriianri-Busch Waggon-Fahrzeug-Maschinen GrribH, Oclmühle Hamburg AG, Hamburg Salzgitter-Watenstedt

Paul Tiefetibacher, Dr.-lriy. Karl Andresen, ol Paiil Ticfcnbacher & Co., Hamburg Chairinan of the Board of Mariaging Directors, Kabcl und Mctallwerke Gutehoffnungslii~tteAG, Hanover Dipl.-Kfm. Paul Tippmann, Chairmari of the Board of Management of Alfred Belling, Norddeutsche Salirieti GrnbH, Stade ol Mascliiiienfabrik Slahlknntor Wcser Lcnze KG, Hameln

Dr. h. C. Alfred Toepfer, Dr. Ursula Brinkmann, of Alfred C. Toepfer, HaniLiurg Gencral Manager, Massey-Fergusori Gyula Trebitsch, Gesellschaften in Deutschland, Hariover Chairmari of ttie Managemctit of STUDIO HAMBURG Dr. oec. Walther H. Buchler, Atelierbetriebsgesellschaft mbH, Harnbiirg Partner and Managing Director. Wolf-Elmar Warning, Messrs. Bucliler GmbH & Co., Braunschweiq of Coutinho, Caro & Co. KGaA, Hamburg Dr. Carl-Ernst Büchting, Carl-Arend Weingardt, Cl~airmanof the Board of Managiriy Directors. KWS Chairman of tlic Managcmcnt Board, Deutsche Unilever Kleinwanzlebener Saatzucht AG formerly GmbH, Hambuig Rahhethge & Giesecke, Einbeck

Dr. Peter Weinlig, Dipl.-Kfm. Dictcr Busch, Chairman of the Board of Managing Directors, Mernber of the Managcinent Board, Phocnix Gummiwerke AG, Hamburg Gunttier Wagner Pelikaii-Werke GmbH, Hanover Jürgcn von Darnm, Konsul Dipl.-Brauing. Jürgen Middendorff, Ctiairrnari of thc Board of Managirig Directors, Managing Director, Mutile Rüriitigeti AG, Brauerei Herreiihauseti GrnbH, Braunsctiweig-Riitiitigeti Hanover-Herrentiauseri

Helmut Graf, Senator h. C. Peter Müller, Lessee of thc Domain Marieriburg, Hildeshcim Spokesmaii of the Management, Beamtenheimstättenwerk Gemeinnützige Bausparkasse Karl Graf, fur den öffentlichen Dienst GmbH, HarneIn Diplorri-Laridwirt and landowner, Sal~gitler-Bad Horst Münzner, Hans-Gijnther Hage, Member of the Board of Managing Directors, Partner in Scnkingwerk GmbH KG, Hildestieirri Volkswagenwerk AG, Wolfsburg

Dr. Carl H. Hahn, Dr. Dietrich Pförtner, Chairman of the Board of Managing Directors, Partner arid Managing Director of Sotineti-Basserniariti-Werke Contincntal Gummiwerke AG, Hanover Sieburg & Pförtner GmbH & Co. KG, Seeseri

Dipl. Math. Waltcr Hannecke, Dr. jur. Gerhard Prinz, Chairman of thc Boards of Managing Direclors, Member of the Board of Matiaging Directors. Magdchurgcr Versicherungs-Gesellschafle~~,Hanover Dniniler-Betiz AG, Stuttgari

Dr. jur. Hans Sarnwer, Dr. Erich von Hantelmann, Ctiairman of ttie Boards of Managirig Directors, Ctiairrriari of the Board of Managing Directors. Gothaer Lebensversicherung a. G. and Wolff Walsrode AG, Walsrode Gothaer Allgemeine Versicherung AG. Gottingcn

Claus Heibcy, Dr. jur. Hans Schuberth, Partrier arid Managing Director of Partner and Managing Dircctor of NationaLJürgens-Brauerei Messrs. Wullbrarirlt & Secle GmbH & Co. KG, Braunschweig and Schuberth-Werk, Braiiriscliweig

Dr. Heinz Klautschke, Hans-Christian Seeliger, Ctiairrrian of tlic Supervisory Board, Laiidowncr, Rittergut Wcndessen, Wolfenbiittel Doorrikaal AG, Norden (Ostfrieslarid) Dr. Hans-Günther Stalp, Meinber of ihe Board of Mariagirig Direclors. Professor em. Dr.-lny. Friedrich Wilhelm Kracmer, Preiissag AG, Hariover Architcct, Braunschweig/Cologne Dr. Ernst-Heinrich Steinberg, Dr. Waltcr Kuhn, of Chr. Hosimann-Steinberg'sche Farbenfabriketi, Celle Member of ihe Board of Mariagerrient, Gebrijder Biihler AG, Uzwil (Switzerland) Hans-Erich Thoeriny, Member of tlic Management of Dipl.-lng. Lothar Lange, Otlo Kreibauiri Gesellschaft für Iridustricbeteili~]un~nrribH, Mcmbcr of the Board of Managing Directors, Salzhemmendorf-Lauencteiri TEUTONIA Misburger Portland-Cementwerk, Hariover Dipl.-Kfm. Werner Wendrich, Spokesriian of ttie Board of Mariagirig Directors. Paul Lepach, Kali-Clicmic AG, Hanovcr Spokesman of ttie Board of Managing Directors. Touristik Union International GmbH KG, Hariover Dr. jur. Rolf Arend Winter, Member of the Board of Mariagirig Directors, Dieter Madaus, Braunschweigische Kohlen-Berywerke, Heltnstcdt, and Chairmari of ttie Board of Management, Merriber of the Board of Managing Directors, Schmalbach-Lubeca GrribH, Braunschweig Elektrowerke AG, Berlin, Helmstcdt Dr. jur. Reinhard Wolff, Dr. Wilhelm Lichtenberg, Member of the Board of Managirig Directors of Mcmber of thc Board of Manaqirig Directors, C. Deilmann AG and Chairnian of the Supervisory AG Eiserfelder Steiiiwerke, Linz (Rhein) Board, Braunscliweiyische Maschinenl-iauatistalt, Dr. rer. pol. habil. Rudolf Meimberg, Braurisctiweig Professor of Economics at Mainz University, Neu-lsenburg Dr.-lng. Fritz Meyer, Advisory Council of Mainz Member of the Board of Managing Directors, Die blauen Quellen Fritz Meyer & Co. AG, Rheris

Konscil Dr. Walter Kalkhof-Rose, Chairman, Herbert Nack, Partner iri Ernst Kalkhof, Chemische Fabrik, Partner and Chairman of tlic Supervisory Board, and Kalkhof GmbH Petersen & Stroever, Managirig Director NSM-Apparatebau GmbH KG, Birigen of Resart Ihm AG, parlrier iri Resart GmbH, Maiiiz Dr. oec. Dipl.-Kfm. Karlhanns Peter Polonius, Dr. Heinrich J. Klein, Deputy Chairman, Chairman of thc Management Board of Member of the Managcmenl. Linde Hausgeräte GmbH, Mainz-Kostheim JENAcr GLASWERK Schott & Gen., Mainz Dipl.-Chemiker Manfred Rhodius, Dipl.-Kfm. Hans Helmut Asbach, Partner and Managing Dircctor of Partner in Asbach & Ca., Weinhrennerei, Riidesheirn Gebrüder Rhodius GmbH & Co. KG, Burgbrohl (Rhein) Sissy Richter-Boltendahl, Dr. Folkert Bellstedt, Partner and Managing Director, Partner arid Managirig Director, Weiribrennerei Scharlachberg Sturm & Co., Bingen C. H. Boehririger Sohri, Chemische Fabrik, Ingelhcim (Rhcin) Heinr Hermann Freiherr Schilling von Canstatt Dr. Jürgen Berlin, Partner in Messrs. Chr. Adt. Kupferberg & Cic, CGaAcl., Mairi~ Member of the Board of Managitig Direclors, Basdlt AG, Linz (Rhein) Dr. Norbert Steuler, Partncr aiid Manayirig Director of Dr.-lng. Alfred Doderer-Wirikler, SIeiiler-lndustriewerkc GmbH, Hohr-Grerizhausen Partncr arid Mariagirig Director, Werner Tyrell, Winkler & Dürinebier, Maschinctifahrik iirid Eisengiesserei, Ncuwicd Vineyard proprietor, -Eitclsbach, Karlhaiisertiof Hanns-Christof Wegeler, Rudolf Fissler, Partner in Deinhard & Co. KGaA, Partner and Managing Director, Sektkellereien und Weinexport, Koblenz FlBEG Fissler Beteiligungsgescllschaft mbH. Idar-Oliersleiri Dipl.-Kfm. Karl-Wilhelm Westphal, Member of the Managcmcril Board of Blendax-Werke, Dipl.-Kfm. Dr. jur. Claus Freiling, Maiiiz Member of tlic Board ol Managing Directors. Rasselstein AG, Neuwied S. D. Friedrich Wilhelm Fürst zu Wied, Neiiwied Dr. jur. Dr. h. C. Walter Halstrick, Chairman of Ilie Management Board of Papierwerke Halstrick GmbH, Raubacti, Euskirchen-Stotzheirri Advisory Council of Mannheim Hellmuth Lemm, Partner and Managing Director. Dr. rer. pol. Dipl.-Kfm. Ernst Denzel, Chairman, lndustriewerke Lemm & Co. GmbH and Meriiber of thc Board of Managing Direciors, Romika Lenini & Co. GmbH, Gusterath-Tal (Kreis Trier) BASF AG, Ludwigshafen (Rhcin) Dr. Nikolaus Stuckmann, Deputy Chairrnan, Dr. jur. Reiritiart Freudetiberg, Mannhciin Portiicr in Mcssrs. Frecidenberg & Co. and Carl Freudciiberg, Wcinhciin Felix Altenhoven Chairrriari ulthe Board of Manacjing Directors. Dipl.-lng. Hans Glöyer, Grünzwei!) + Hartrnariri iirid Glasfaser AG, Ludwigshafen Merriber of ttie Board of Mariagirig Dircctors, (Rticin) Rheinelcktra AG, Mannheim, arid Latiriieyer AG. Frankfurt (Main), Mannheim Dr. phil. Ludwiy von Bassermann-Jordan, Vincynrrl proprictor, Dcidesheirn (Pfalz) Dr. phil. Dr. h. C. mult. Heinz Götze, Partner arid Managing Dircctor of Springer-Verlag KG, Fritz Becker, Berliri-Heidelbery-New York, Heidclberg Iieidelberg Artur Grosse, Kcirt Beckh Partner in Messrs. Henkel & Grosse, Pforzhcim Managiny Director of DODUCO Edelmetall Gesellschaft mbH, Pforztieirii Georg Enoch Reichsfreiherr von und zu Guttenbery, Schloss Guttenberg (Oberfranken) Max Berk, Partner arid Managing Director. Fritz Häcker, Max Berk Group, Hcidelberg Chairman of the Board of Mariaging Directors, Gesellschaft fijr Spinncroi und Weberei, Ettlinycn (Boden) Professor Dr. rer. nat. Ernst Biekert, Chairman of the Board of Managirig Directors, Sven Hayander, Knoll AG, Chemische Fabriken, Luriwigshafcn (Rhein) Partner in Naturin-Werk Becker & Co., Wcinheirri (Bergstrassc) Dr. Albert Bürklin, Virieyard proprictor, Wacheriheim (Pfalz) Assessor Hans C. W. Hartmuth, Chairman of the Board of Managing Directors, Dr. Friedrich Wilhclm Clauser, Albert-Frankerithal AG, Frankerithat (Pfalz) Parmer arid Managincl Dircctor of Dr. rer. pol. Klaus Hoesch, Korrirnariditgesellsclinfi Gehr. Rochling, Mannheim Partner in Schoeller & Hoesch KG, Gernsbach (Badeii) Dr. rer. pol. Dr.-lng. E. h. Gottfried Cremer, Dipl.-Wirtschafts-lng. Dietward Horn, Ctiairrnari of the Supervisory Board, Dcutsclie Steirizeiiy- Member of the Board of Manayiny Dircctors, cirid Kunststoflwrirerilat~ril

Ing. grad. Roland Dorschner, Dr. Karl H. Krengel, Cliairninn of the Board of Managirig Directors, Municli Hutsctierircuthcr AG, Selb Dr. Hcrmann Linde, Oskar Eckert, Piillnch Vicc-Presiderit, Caycrisctie Laiiclesanstalt fiir Dr. Gerhard Mangold, Aiifliniifiiinnzici-~ing,Mutiich Ct,nirnian of the Board of Managing Directors, Dr. Wolfgang Everling, Scti~iberi8 Salzcr Masctiirierifabrik AG, Merriber of tlic Board of Managing Directors, Ekkehard Maurer, Rcrcjmanri-Elekir~ciIatsWerke AG, Miinicli Meinber of ttie Mariaycmcnt Board, Wacker-Chemie GrnbH, Dr. -In<].E. h. Herinann Fcndt, M ii iii cti Partner in X. Feridl It Co. Masctiirieri- irnd Sclilepperfnbrik, Dipl.-lng. Joachim Mullcr, Marklobcrdorf Depiity Membcr of ttie Board of Managirig Directors, Dr. Fritz Gartncr, Liride AG, Hollriegelskreuth Pdrtncr nnd Managinq Director of Josef Gartrier 8 Co., Stalil- i~iirlMetallkonstruktion, Gundelfiriycn Dr. Wolfgang Müller, Depcity Mernber of thc Board of Maiiaging Dir-ectors, Albert Geyer, Maschincnfabrik Augsburg Nurnberg AG. Municti Partner arid Managin'] Director of Christiari Geycr eleklrcitcchn. Fahrikcn, Dr. Klaus Müller-Zimmermann, Gcyer Sclialtnnlager-i KG, Geyer KG, Nuretnbcrg Gencral Manager of Sicinens AG, Munich

Dr. Hans Heirir Griesmcier, Siegfried Otto, Chnirmaii of ~ticBoard of Manac~irigDirectors Ctiairrriari of the Mariagenient Board Kraiiss Maffei AG, Munich aiid Priricipal Partner of Giesecke & Devricnt GinbH, Muriich Wilhcltn von Gwinrier, Muriich Dr. Alfred Pfeiffer, Meiiibcr of the Board of Managing Directors, Dipl.-lng. Ernst Haitidl, Suddeiilsclic Kalkstickstoff-Werke AG, Trostbcrc~ Spokesiiinn of ttie Mnnagerrieril Board, Haintll Papier GmbH, Airgsburg Heliiiut Plettner, Cliairinan of ttie Manngeinent, Dicter Heckmann, Osrniii GnibH Berliri-Miinchen, Municli Partner and Mariaging Director, Arritwrclcr Knoliriwcrkc Gint>H, Hirscliau/Opf. Dipl.-Forstwirt Hippolyt Freiherr Poschinger von Frauenaci, F.-F. Herzog, Prcsident olthe Bavariari Seriatc, Fraiierinu (Niederhayerri) Gerieral Manager and Mnna!]irig Dircctor, NCR GrribH, Acicjsburg Dr. Walter Reichel,

Andreas Michael Huclc, Ctiairnian of ttie Boards of Managing Directors, Aaclieri-Leipziger Versicherungs-AG, Co-piiblislier of Muncl-irier Merkur and Chairman of ttie Bei-linische Feuer-Versicticrcings-Anstalt, Advisory Couricil of F Bruckrriann KG, Muriich EOS Lebensversicherurig AG, Christiari Kluepfer, Vereinigte Krankenversictierirri~]AG in ihe Pnrtriei- arid Mnnagirig Director, K18pfcr & Köriiycr, Uniernchincnsverbaiid Vcreiriigte Vcrsictierungsgriippc, Sägewei-kc und Hol/liandIuncj, Muriich Muriich Karl-Erl-iard Ricl-itberg, Dipl.-Kfm. Josef Woerner, Partner iri Karl Richtberg KG, Partncr in Messrs. Sager & Woerrier. Mariagirig Dircctor of Durisol Leichlbaustoffe Hoch-, Tief- iirid Strasscnba~i,Munich GmbH & Co. KG, Bingen (Rheiri) Gerhard Wolf, Günter Paul Schäfer, Mariaging Dircctor of Ireks-Arkady GmbH, Kuliiibach Mariagirig Director, Dr. Helmut Wolf, Loewe Opta GrribH, Kronach Member of the Board of Managirig Directors, Deiiisclie Continental-Gas-Gesellschaft, Dusseldorf Dr. Otto Schedl, Fornier Bavarian Minister of Statc for Fitiaricial Affairs, Ciirt M. Zechbauer, Muriicti Partncr in Mayser's Hutfabrikcn and in Max Zechbauer, Tabakwaren, Municti Grete Schickedanz, Co-proprictor of Grossversandhaus Quelle Gustav Schickedanz KG, Fiirtli, arid Vereinigte Papierwerke Schickedanz d Co, Nurerriberg, Furth Advisory Council of Stuttgart Erhardt D. Stiebner, Dipl.-lng. Helmut Ebcrspächer, Chairman, Partner arid Mariagirig Director of Partner and Managing Director, Messrs. Briickmann KG, Messrs. J. Ebcrspacher, Esslingen Verlag und graphische Kiinstanstalten, Mtinich Dr. jur. Werner Henneberg, Deputy Chairman, Gottlieb M. Strobl, Member of the Board of Managing Directors, Chairiiiari of the Board of Mariaging Directors, Zahnradfabrik Friedrichstiafen AG, Friedrichshafen AUDl NSU AUTO UNION AG, Member of the Board of Managirig Directors, Volkswageriwerk AG, lngolstadt Dr. jur. Peter Adolff,

Dipl.-lng. Georg Thoma, Mernber of the Board of Managing Dircctors, Allianz Versicherurigs-Aktiengesellschaft, Munich Chairmaii of the Supervisory Board, Leonische Dratitwerke AG, Nurerriberg Wciltcr Bareiss, Dr. Gerhard Tremer, Cliairiiiaii of ttie Supervisory Board, Membcr of the Board of Managing Directors, Scliaclierirriayr, Mann & Cic. GrnbH, Salacli Bayerisctie Landcsbank Girozenlrale, Muriicti Generaldirektor Walther A. Bösenberg, Walter Trux, Ctiairman of the Management Board. Chairniari of the Board of Managirig Directors, IBM Deiitschland GmbH - Hauptverwaltung -. Stilttgart Fictitel & Sachs AG, Piero Bonelli, Korisul Joachim Vielmetter, Honorary Chairman of DEUTSCHE FlAT AG, Heilbronti Partner in Kriorr-Brenise KG, Bcrlin-Miinich, Miinich Dr. jiir. Erich Bracher, Otto Waldrich, Chairman of ihe Management Bontrl, Partner and Managing Director of Werkzeugmaschinciifnbrik Filterwerk Mann li, Huinmcl Giiil-iH, Ludwigst>~irg Adolf Waldrich Coburg, Coburg Rolf Breuning, Professor Dr. C. F. Freiherr V. Weizsäcker, Chairman of thc Manageriierit Board, Head of ttie Max-Planck-Institut zur Erforschung dcr Motoren- und Turbinen-Uriion (MTU) Miincheri GrribH, Lcbenshcdingungen der wissetischaftlicti-tecti~iisclietiWeit, and of the Management Board, Moloreii- urid Turbinen Starriberg Uniori (MTU) Friedrichshaferi GrribH, Friedrichshafen

Dr. Eugen Wirsching, Dr. Wilfried P. Bromm, Member of thc Board of Managing Directors, Mernber of the Board of Managirig Directors, Ackermann-Görjgingen AG, Miinich Württcmbergische Metallwnrenfabrik, Gcislingcn (Steige) Dr. jur. Georg Büchncr, Wilhelm Kraut, Member of ttie Board of Managing Directors, Partner and Managing Director, Wurttembergisctie Feuerversicherung AG in Stiittgart. BIZERBA-Werke Wilhclm Kraut KG, Balingen (Württemberg) Stuttgart Helmut Leuze, Dr. rer. pol. Gunter Danert, Partner in Leuze textil KG Member of ttie Board of Managing Directors, and Partner in C. A. Leuze (oHG), Owen (Teck) Standard Elektrik Lorenz AG, Stuttgart Dipl.-Volkswirt Alfred Mahler, Dr. rer. pol. Franz Josef Dazert, Chairrriari of ttie Supcrvisory Board, Chairman of the Board of Managing Directors. Unifranck Lcbensmittelwerke GmbH, Ludwigsburg Salarriander AG, Kornwestheim Otto Julius Maier, Dipl.-Kfm. Horst G. Esslinger, Partner and Managing Director, Managing Dircctor of C. H. Knorr GmbH, Otto Maier Verlag KG, Ravensburg

Wolf-Dieter Freiherr von Gemniingen-Hornberg, Ekhard Freiherr von Maltzahn, Merritier of lhe Siipervisory Board, Dusseldorf Württembergische Metallwarcnfabrik, Dr. rer. pol. Ulrich Palm, Gcisiincjen (Steige), Friedenfels (Oherpfalz) Member of ttie Board of Mariaging Directors, Dr. jur. Fritz Glaser-Gallion, Wicland-Werke AG, Spokesman of ttie Mariageinerit Board, Dipl.-Kfm. Karl F. W. Pater, Wilh. Gallion GmbH & Co., Stuttgart General Manager of Daimler-Benz AG, Stuttgart

Dr. Richard Hengstenberg, Dr. jur. Alfred Rieger, Partner and Managing Director of Rich. Hcngstenberg, Partner and Managing Director, Weinessig-, Sauerkonserven- und Feinkostfabriken, P. Jenisch & Co. Strickwarenfabrik, Nürtingen Esslingen Dott. Cesare Romiti, Dipl.-lng. ETH Max A. Henzi, Amministratore Delegato, FlAT S.p.A., Turin Chairman of the Managernerit Board, Escher Wyss GmbH, Dr. Hans Ruf, Ravenshurg Chairman of the Board of Managing Directors, Erwin Hermann, DLW Aktiengesellschaft, Bietigheim-Bissinge11 Advisor to Mahle-Beteiligungen GmbH, Stuttgart Dipl.-lng. Dr. jur. Karl-Wilhelm Schäfer, S. H. Friedrich Wilhelm Fürst von Hohenzollern, Meinber of the Management, Dornicr GmbH, Friedriclishafen Sigmariiigen Dr. h. C. Karl-Erhard Scheufelen, Dipl.-lng. Walter Hohner, Partner and Managing Director. Member of thc Board of Mariayirig Dircctors, Papierfabrik Scheufelen, Oberlenningeri (Württemhcrg) Matth. Hohncr AG, Trussirigeri Dr. jur. Paul A. Steiii, Georg von Holtzbrinck, Managing Director of Robert Bosch GrribH, Sluttgart Parlner arid Managing Director, Dr.-lng. Helmut Steinmann, Deutscher Bücherbund KG, Stuttgart Chairman of the Managerneiil Board, Dipl.-lng. Karl Kässbohrer, Messrs. Werner & Pfleiderer Partner and Managing Director. Maschinenfabriken und Ofenbau, Stiittgart Karl Kässhohrer Fahrzeugwerke GmbH, Ulm Dr. rer. pol. Rüdiger Stursberg, Generalkonsul Dr. Werner F. Klingele, Member of the Board of Mariagirig Dircctors, Partner atid Managing Director, Aesculap-Werke AG formcrly Jctter & Schecrer, Klingele Papicrwerke, Gruribach nr. Stuttgart Tuttlingen C. 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 Waldbury zu Zeil Chairman of the Board of Managing Directors, und Trauchburg, Rheinisch-Westfälische Kalkwerke AG, Wuppertal Schloss Zeil Wilhelm Hardt, Dr. jur. Christoph Wocher, Partner in Messrs. Johann Wülfing & Sohn, Rcmschcid Managing Director. Bausparkasse Gemeinschaft der Freundc Wustenrot, gemeinnützige GmbH, Ludwigsburg Kurt Henkels, Co-proprietor of Messrs. Stocko Metallwarerifabriken Henkcls und Sohn GmbH & Co., Advisory Council of Wuppertal Wuppertal

Dipl.-lng. Dieter Metzenauer, Chairman, Professor Dr.-lng. Dr. h. C. Kurt Herberts, Partner and Managing Director. Senator E. h., Wuppertal Metzenaucr & Jung GmbH, Wuppertal Dr. Dieter Heutling, Walter Kaiser, Deputy Chairman, Chairman of the Management, Partner and Managing Director, L. & C. Steinmüller GmbH, Gummersbach Gebr. Kaiser & Co. Leuchten KG, Arnsberg (Westf.) Dipl.-Volkswirt Kurt Honsel, Dr. Armin Albano-Müller, Member of the Board of Managing Directors, Honsel-Werke AG, Meschede Partner and Managing Director, Schwelmer Eisenwerk Müller & Co. GmbH, Schwelni Dr. Arnold Hueck, Manfred von Baum, Partner in Eduard Hueck KG, Metallwalz- und Presswerk, Ludenscheid Managing Director, von Baum Verwaltung GmbH & Co. KG, Wuppertal Dipl.-Kfm. Peter Jagenberg, Gottfried F. Beecker, Partner and Managing Director of Jagenberg & Cie., Member of the Board of Managing Directors, Solinger Papierfabrik (GmbH & Co.), Solingen Gold-Zack Werke AG, Mettmann Dr.-lng. Jochen Kirchhoff, Wilhelm Bomnüter, Partner and Managing Director, Partner and Managing Director. Vossloh-Werke GmbH, Stephan Witte & Co., Iserlohn Werdohl Dipl.-Wirtsch.-lng. Diether Klingelnberg, Dipl.-Kfm. Helmut Bremshey, Partner and Managing Director, Member of the Board of Managing Directors, W. Ferd. Klingelnberg Söhne, Bremshey AG, Solingen Dipl.-lng. Kurt Krawinkel, Rechtsanwalt Dr. Heint Frowein, Chairman of the Advisory Council. Wuppertal Lcop. Krawinkel, Bergneustadt

Peter Frowein, Dr. Manfred Luda, Partner in Frowein & Co. KGaA, Wuppcrtal Lawyer and Notary, Meinerzhagen (Westf.)

Hans Joachim Fuchs, Dr.-lng. Erich Mittelsten Scheid, Senator E. h., Partner and Managing Director, Chairman of thc Advisory Council of Vorwerk B Co., Otto Fuchs Metallwerke, Meinerzhagen (Westf.) Wuppertal Dipl.-lny. Güntcr Peddinghaus, Dipl.-lng. Heiriz Schippers, Senator E. h., Partner and Managing Director. Member of the Board of Mariagirig Directors, Carl Dan. Peddingha~isKG, Ennepetal BARMAG Barmer Maschinenfabrik AG, Reiiisclicid

Hans Waltcr Pfeiffer, Hans Joachim Schlange-Schöningen, Proprielor of Ohler Eiscnwcrk Theob. Pfeiffer, Pletteribery Deputy Chairman of the Board of Managing Directors, AKZO N.V., Arnheim (Nctherlands) Albrecht R. Pickert, Mariagirig Director of R. &, G. Schrriole Meinllwcrke, Enno Springmann, Mcrideri (Sauerlatid) Partner in Gebr. Hilgeland Maschinenfabrik, Wuppcrtal

Korisul Albert Rampelberg, Hans Vaillant, Manaqing Director, Deutsche Solvay-Werke GtnhH, Solingeri Chairman of the Advisory Couricil, Joh Vaillant KG, Rcmscheid Dr. Frariz J. Rankl, Chairman of ttie Mariageiiietil Board, Hans Martin Wälzholz-Junius, Dr. Kirrt Hcrberts 6: Co. GmbH Co-proprietor ol Messrs. C. D. Wälzholz, Hoherilinit->iirg fnrmcrly Otto Louis Hcrberts, Wuppertal Dr. Hans Günther Zempclin, Dr. Walter Salzer, Chairman of ttie Board of Managing Directors, Wuppertal Enka Glanzstoll Groiip, Woppcrtal

It is otir sad diity lo annoirnce the deaths of ttie followiny menibcrs of our Regional Advisory

Couricils:

Korirad Freiherr V. Kottwitz, Hamburc]

Conrad Schaefer, Partner and Managing Director of Messrs G. L. Peitie, Hitdcshcim

Joachim V. Schinckel, Hamburg

Herbcrt Waldthaiisen, Chairman of the Advisory Board, Lolimann R Co. GmbH, Bremeri

We shall always remembcr thein with respect and gratitudc. Central Office: Frankfurt (Main) / Düsseldorf

Domectic branches: Bad Salzciflen Brcmcn Diisseldorf with 1 sub-branch witti 14 sub-bratiches wilti 31 sub-branches Bad Segebery Bremen-Vegesack Düsseldorf-Benrath Aachen Bad Tölz Brcrnerhaven with 1 sub-braiicti with 5 sub-braricties Bad Wildungen witti 3 sub-brariclies Duisburg with 19 sub-branchcs Aalen (Württ) Bad Wörishoferi ünd 1 paying office with 1 sub-hranch Bad Zwischenahn Bretten (Baden) Duisbiirg-Harnbcrn Achim (Bz Brcrncn) wiih 3 sub-branches Balinyeii Brilori Ahacis Duisburg-Rheinhaiiseri Barn bcrg Bruchsal Ahlen (Westf) Duisbiirg-Ruhrort Barsinghausen Briilil (Bz Cologne) Ahrcnsburg (Holst) Baunatal Brurisbuttel Eiribeck Al bstadt Bayreuth Buchholz i d Nordheide Eiserfeld (Sieg) with 1 sub-branch Beckum (Bz Münster) Buhl (Baden) Eislingeri Alfeld (Leine) Bcndorf (Rhein) Bünde Eitorf Alsdorf (Rheinl) Bensbery Burgdorf (Han) Ellwangen (Jagst) Alsfeld (Obertiess) now: Bergiscti Gladbach Burscheid (Rhsinl) Elmshorn Altena (Westf) Bensheim Buxtehude Elten Altenkirchen (Westerw) Beryeri-Enkheirri Eltville Alzey Castrop-Rauxel iiow: Frankfurt Emden Ain berg with 1 sub-branch Bergheini (Erft) Errirnendirigeri Andernach Ccllc Bergisch Gladhach Clausthal-Zellerfcld Eninierich Arisbach witti 1 sub-brarich Cloppenburg Emsdetten Artisberg Bergneustadt with 1 suh-hranch Coburg Erigelskirchcri Bernkastcl-Kiies Asctiafferiburq Coesfeld Ennepetal (Westfl-Milspe Betzdorf (Sieg) with 1 sub-branch Asperg Cologne Beverungcn Erkelenr Attendorn witti 25 s~ib-brarictie~ Biberach (Riss) Erkrath (Bz Düsseldorf) Augsburg Crailsheim Biederi kopf with 8 sub-branches Cuxtiaveri Biclcfcld Eschborn Aurich Düchau witti 7 sub-braricties Eschwege Backnanq Darmstadt Bietighcirn (Württ) Eschweiler Bad Berleburg witli 5 siib-hraiiclies Binyeri (Rhein) Espelkainp Bad Driburg (Westf) Datteln (Westf) Blomberg (Lippe) Essen Bad Dijrkheirn Deggendorf Bocholt with 24 sub-branchcs Baden-Baden Deidesheirn Esslingen (Neckar) Bad Harzburg with 5 sub-brariches Delmenhorst Ettlingen (Baden) Bad Hersfeld Boctiuin- Detmold Euskirchen Bad Homburg V d Höhe witti 1 sub-branch Dietzenbach Eutiri Bad Honnef Bockum-Hövcl Dillenburg Bad Iburg Boblingen (Württ) Dinslaken (Niederrhein) Fellbach (Württ) Bad Kreuznach Boriri witti 1 sub-brarich Flensbi~rg Bad Lauterbery witti 6 sub-braiicties Dormagen (Niederrhein) with 3 sub-brariches Bad Lippspringe Bonn-Bad Godesbcrg Dorsteri Forchhcirn Bad Münstereifel Boppard Dortmund Frankenthal (Pfalz) Bad Neuenahr Borken with 14 sub-branchcs Frankfurt (Main) Bad Oeynhausen Bottrop Dreieich with 22 sub-branchcs Bad Oldesloe Branische (Bz Osnabrück) Dülnien and 1 paying officc Bad Pyrmont Braunschweig Diircn (Rhcinl) Frarikfurt (Main)-Höchst Bad Sachsa (Südharz) with 12 sub-braricties with 1 sub-branch Frechen Hamburg: restored outside, redesigned inside

IL took two ycars io convert our barik's almost 100-year-old buildirig iri Harn- burg. The object was not only to con- vert the complcx, consisting of four dif- ferent buildings dating frorn different periods with a volume of nearly 100,000 cil. metres, but also to create a single, cohesive unit, which at the Same time was to be both corrifortable and tcchni- cally up-to-date. The facadc (picture top left) which was designed in 1884 by Martin Haller, a well-known Harnburg "rnasterbuilder", was rcstored and the iriside of the building was corripletely redesigned.

Now, about 170 rnernbers of Deutsche Bank's staff work in the spacious bank- ing hall, with an area of over 2,400 sq. rnetres (cf. centre and bottorii pictures), which is divided into a sccurit~cssec tion and a cash section. Marble-faced stairways and dark hardwood counters create a refined atniospherc. The secur- ities section is linked dircctly with the Computer of the Harnburg stock exchange, so that prices can be fol- lowed on a screen aiid an clcctronically controlled quotation board. In the cash section 11 cashiers' booths are linked by a tele-ctieque system with the ac- courit clerks on the ttiird floor. From the banking hall thcre is dircct access to ttie riew strongrootli with 3,500 safe-de- posit boxes which are watertight and floodproof. At thc opcning of the build- ing at the end of September, Dr. Hans Leibki~tsch, Mernber of the Board of Managing Directors (picturt: top right), emphasised: "Truc to the Spirit of this city, our giiiding principle will always lje to prcserve proven traditions and to lie progressive as we go into the fii- ture." Freiburg (Breisgau) Gronau (Leine) Hilden Königsbrunn with 7 sub-branches Gronau (Westf) with 1 sub-branch Königstein (Taunus) Freising Gross-Gerau Konstanz Freudenberg (Kr Siegen) Gütersloh with 3 sub-branchcs with 1 sub-brarich Friedberg (Hess) with 1 sub-branch Hockenheim (Baden) Konr ü1Trier Friedrichsfeld Gummersbach Höhr-Grenzhausen Korbach now: Voerde with 1 sub-branch Höxter Kornwestheim (Württ) Friedrichshafen Haan (Rheinl) Hohenlockstedt Korschenbroich Fürstenfeldbruck (Westf) Holzminden Krefeld Fürth (Bay) with 8 sub-branches Horn - Bad Meinberg with 7 sub-branches witti 1 sub-brarich Haiger Huckelhoven Krefeld-Uerdingen Fulda (Westf) Hückeswagen Kreuzau with 1 sub-branch Hamburg Hurth (Bz Cologne) Kreuztal (Kr Siegen) Gaggenau (Murgtal) with 45 sub-branches Husum (Nordsee) Kronberg (Taunus) Garmisch-Partenkirchen Hamburg-Altona Ibbenbüren Kulmbach Geesthacht Hamburg-Bergedorf Idar-Oberstein Laasphe Geislingen (Steige) Hamburg-Harburg with 1 sub-branch Laatzen with 1 sub-hranch Hameln lngelheim (Rhein) Lage (Lippe) Geldern (Westf) lngolstadt (Donau) Lahn-Giessen Gelsenkirchen with 2 sub-branches with 2 sub-branches Lahn-Wetzlar with 5 sub-branchcs Hanau lserlohn Lahnstein Gengenbach with 1 sub-branch Hanover Lahr (Schwarzw) Georgsmarienhütte with 18 sub-branches ltzehoe Landau (Pfalz) with 1 sub-branch Jcver Han. Münden Landsberg (Lech) Gerlingen (Württ) Jülich Harsewinkel ÜIGütersloh Landshut Germering Haslach (Kinzigtal) Kaarst Landstuhl Gernsbach (Murgtal) Hattingen (Ruhr) Kaiserslautern Langen (Hess) Gersthofen with 1 sub-branch Hausen ÜIOffenbach Langenfeld (Rheitil) Geseke (Westf) Kamp-Lintfort Heidelberg Langenhagen (Han) Gevelsberg with 5 sub-branches Karlsruhe with 1 sub-branch Giengen (Brenz) with 6 sub-branches Heidenheim (Brenz) Lauenburg Giessen Kassel Heilbronn (Neckar) Lauterbach (Hess) now: Lahn with 5 sub-brancties witli 1 sub-branch Leer (Ostfriesl) Gifhorn Kehl Heiligenhaus (Dusseldorf) Leichlingen (Rheinl) with 1 sub-branch Kempen (Niederrhein) Helmstedt Leimen Ginsheim-Gustavsburg Kemptcn (Allgäu) Gladbeck (Westf) Hemer with 1 sub-branch Leinfelden with 1 sub-branch Hennef (Sieg) Kettwig Lemgo Goch Heppenheim now: Essen Lengerich (Westf) Göppingen Herborn (Dillkr) Kevelaer Lennestadt Göttingen Herdecke (Ruhr) Kiel Leonberg (Württ) with 1 sub-branch Herford with 7 sub-branches Leutkirch Goslar Herne Kierspe (Westf) Leverkusen with 1 sub-branch with 4 sub-brancties Kirchheim unter Teck with 2 sub-branches Grefrath Herten (Westf) Kirchhellen Leverkusen-Opladen Grenzach-Wyhlen Herzberg (Harz) Kleve (Niederrhein) Limburg Greven (Westf) Herzogenrath with 1 sub-branch Limburgerhof Grevenbroich with 1 sub-branch Koblenz Lindau (Bodensee) Griesheim ÜIDarmstadt Heusenstamm with 1 sub-branch Lingen teiided becausc of city regulations (~reservationof the rococo facade, otilv 5 storeys high) - had long been inade- quale. For this reason technically sophisticated, purpose-built preriiises with accessible roof terraces (cf. top pictiire) were constructed on a 6,500 sq. tnetre site. Situatcd within easy reach at the edge of the city, the build- ing should, as a services entsrprise beneficial to thc environment, at the Same tinie improvc the infrastructure of the area. Office spacc comprises 7,600 sq. tnetres. 4 storeys accommodate at presetit about 500 members of staff, froni departmcnts which do not deal with the public, in fully air-conditioried functionally designed rooms; there are 2 morc floors undergrourid which house technical installations arid strongrooms. On the ground floor there is also a sub-branch (cf. centre picture showing Ihe banking hall). The two photos below show the EDP room on the first floor and an open-plan office. Lippstridt Münster (Westf) Osterholz-Scharmbeck Rüsselsheim (Hess) with 1 sub-branch Löhne (Westf) with 9 sub-branches Osterode (Harz) Säckingen Lörrach Munich Ottobrunn Salzgitter-Bad with 1 sub-branch with 47 sub-branches Paderborn with 2 sub-branchcs Lohne (Oldb) Munster Papenburg Salzgitter-Lebcnstcdt Ludwigsburg (Württ) Nagold Peine with 1 sub-brarich with 1 sub-branch Neckarsulm Salzgitter-Watenstedt Ludwigshaferi (Rhein) Nettetal with 3 sub-hranches St. Georgen (Schwarzw) with 6 sub-braiiches with 1 sub-hrancli Pfullinycn (Württ) Schmallenberg (Sauerl) Lübeck Neuburg (Donau) Pinneberg Schopfheim with 6 sub-branches Ncucnrade Schorndorf (Württ) Lüderischeid Neii Isenburg with 1 sub-braiich Schüttorf Lüneburg Ncumünster Plancgg Schwäbisch Grnünd with 1 sub-branch Neunkirchen(Kr Siegen) Plettenberg with 1 sub-branch Lünen Neuss Plochingen Schwäbisch Hall with 1 sub-bratich with 4 siib-branches Quakenbrück Maikammer Neustadt (b Coburg) Schweinfurt Radolfzell Mainz Neustadt (Weinstr) Schwelm Rastatt with 5 sub-brariches Neu-Ulm Schwenningen (Ncckar) Ratingen Mannheim Neuwied now: VS-Schweririingeri with 3 sub-branchcs with 18 sub-branches with 1 sub-branch Schwerte (Ruhr) Raunheirn Marbach Nieder-Roden Schwetzingen Ravensburg (Lahn) iiow: Rodgau Seesen with 1 sub-branch Marl (Kr Recklinghausen) Nienburg (Weser) Siegburg Recklinghausen Mayen Nördlingen Siegen Meckenheim (Rheinl) Norden with 3 sub-brancties with 4 sub-branches Mecrbusch Norderney Siegertsbrunn Reinbek (Bz Hamburg) with 1 sub-branch Nordcrstedt Sindelfingen Meinerzhagen (Westf) Nordhorn Remagen Singen (Hohentwiel) Mclle Nürtingeri Remscheid Soest with 5 sub-brariches Memmingen Nureinberg Solingen Menden (Sauerl) with 13 sub-branches Rendsburg with 4 sub-branchcs Reutlinge~i Soltau Meppcn Oberhausen (Rheinl) with 1 sub-braricli Sonthofen Mettmanti with 9 sub-hraiichos Rheda-Wiedenbrück Spaichingen Metzinyeri (Württ) Oberkirch (Baden) Rheinbach Spenge Minden (Westf) Oberursel (Taunus) Rheinberg (Rheinl) Mönchengladbach Öhringen Speyer Rheine (Westf) Sprendlingen (Wcss) with 8 sub-branches Oelde with 2 sub-branches now: Dreieich Mönchengladbach-Rheydt Oerlinghausen Sprockhövel (Westf) Offenbach (Main) Rheinfcldcn (Baden) Stade with 2 sub-braricties with 3 sub-branches Rheinhausen Monheim (Rheinl) Offenburg (Baden) now: Duisbiirg Stadtlohn Mosbach (Baden) (Oldbg) Rlieydl Starnberg Mühlacker (Württ) witti 1 sub-brarich now: Monchengladbach Steinfi~rt Rinteln (Weser) with 1 sub-branch Mühldorf (Inn) Olpe (Westf) Mühlheim (Main) Opladcri Rodgau Stolberg (Rheinl) Mülheim (Ruhr) iiow: Leverkuseii Rosenheim (Bay) Strriubing with 1 sub-branch Osnabrück Rottenburg Stuttgart Müllheim (Baden) with 5 sub-branches Rottweil with 14 sub-brariches Stuttgart-Bad Cannstatt Viernheim (Hess) Weil (Rtieiri) Wipperfürth Sundern (Sauerl) Vierscn Weilheim Wissen (Sieg) with 3 sub-branches Weingarten (Württ) Titisee-Neustadt Villingen (Schwarzw) Weinheim (Bergstr) with 2 sub-bratiches Tönisvorst now: VS-Villingen with 1 sub-braiicti Traben-Trarbach Wittlich Triberg (Schwarzw) Voerde Weissenthurm Wörth am Rhcin Trier Vohburg Werdohl Wolfenbüttel with 1 sub-branch Vreden (Westf) Werl (Westf) Wolfsburg Troisdorf Wahlstedt Wermelskirchen with 4 sub-branches Tübingen Waiblingen Werne Worms with 1 sub-branch Waldbröl Wesel (Niederrhein) Wülfrath with 1 sub-branch Tuttlingen Wald kirch (Breisgau) Würselen (Kr Aachen) Übach-Palenberg Waldshut Wesseling (Bz Cologne) Würzburg Überlingen (Bodensee) Waltrop Westerland with 3 sub-branches Uelzen Wangen (Allgäu) Wetzlar Wuppertal-Elberfeld Ulm (Donau) Warendorf riow: Lahn with 18 sub-branches witti 1 suti-tiraticti Wattenscheid Wiesbaden and 1 paying office Unna riow: Boctium with 6 sub-branches Wyler (Kr Kleve) Wedel (Holst) Wiesloch Vechta Xanten Velbert (Rheinl) Weener (Erns) Wilhelmshaven with 1 sub-branch Weg berg with 1 sub-branch Zell (Mosel) Verden (Aller) Wehr (Baden) Willich (Bz Düsseldorf) Zirndorf Verl Weiden (Opf) with 1 sub-branch Zweibriicken

Holdings in German banks

Berliner Disconto Bank Alrtiengesellschaft, Berlin - 71 offices

Saarländische Kreditbank Aktiengesellschaft, Saarbrücken . 7 sub-branches Further offices in the Saar: Bexbach, Dillingen, Homburg 1 sub-branch, Lebach, Merzig, Neunkirchen . Isub-branch, Saarlouis, St. Ingbert, Völklingen

Deutsche Centralbodenkredit-Aktiengesellschaft, Berlin - Cologne

Frankfurter Hypothekenbank, Frankfurt (Main)

Deutsche Kreditbank für Baufinanzierung Aktiengesellschaft, Cologne

GEFA Gesellschaft für Absatzfinanzierung mbH, Wuppertal Further offices: Berlin . 2 sub-branches, Frankfurt (Main), Hamburg, Hanover, Munich, Nuremberg, Stuttgart, Ulrri Subsidiary: GEFA-Leasing GmbH, Wuppertal Our bases throughout the world

Foreign branches

Japan: Tokyv United Kingdom: London

Branches of Deutsche Ueberseeische Bank

Argentina: Buenos Aires and Rosario (Banco Aleman Transatlantico) Brazil: Sao Paulo (Banco Alemao Transatlantico) Paragua y: Asuncion (Banco Aleman Transatlantico)

Compagnie Financiere de la Deutsche Bank AG, Lcixembourg

DB Finance (Hong Kong) Ltd., Hong Kong

Deutsche Bank (U.K.) Finance Ltd., London

Representative offices abroad

A frica: Cairo Dr. Gerhard Behrens Johannesburg European Bariks International

America: Bogota Alberto Veciana Caracas Konrad Zimmermann Mexico Manfred Hamburger Rio de Janeiro Rüdiger Zaddach Santiago de Chile Winfried Kreklau Toronto Klaus Bartels

Asia: Beirut Siegfried Brurinenrniller Hong Kony Paul von Benckendorff Tehran Friedrich Otto Wolfensteller

Australia: Sydney Joachim Hans Lawonn

Europe: lstanbul Wolfgang Hahn Madrid Dr. Thomas Feske Moscow Matthias Hofmann-Werther Paris Hermann Josef Schmidt Joint institutions of the EBlC banks"

FederalRepublic Europäisch-Arabische Bank GmbH, Frankfurt (Main) of Germany: Europäisch Asiatische Bank AG, Hamburg

Asia: Offices of the Europäisch Asiatische Bank AG, Hamburg: Hong Kong, Jakarta, Karachi, Kuala Lumpur, Manila, Singapore

Australia: Euro-Pacific Finance Corporation Ltd., Melbourne and Sydney

Belgiun?: Banque Europeenne de Credit (BEC), Brussels European Arab Bank (Brussels) S.A., Brussels European Banks' lnternational Cornpany S.A. (EBIC), Brussels

United Kingdom: European Arab Bank Ltd., London European Banking Company Ltd., London

USA: European-American Banking Corporation, New York, Los Angeles and San Francisco European-American Bank & Trust Company, New York

Other participations

Brazil: Banco Bradesco de lnvestimento S.A., Sao Paulo

Spaln: Banco Comercial Transatlantico, Barcelona

Ur~itedKingdom: Al-Bank Al-Saudi Al-Alami Ltd. (Saudi lnternational Bank). London European Brazilian Bank Ltd., London lnternational Mexican Bank Ltd., London Iran Overseas Investment Bank Ltd.. London

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

Further participations in banks in

Africa: Abidjan - Brazzaville - Casablanca - Dakar - Libreville - Lome - N'Djamena - Rabat - Yaounde

America: Bogota

Asia: Bombay - Karachi - Kuala Lumpur - Manila - Seoul -Tehran

Europe: Amsterdam - Athens - Helsinki - Madrid

* EBlC banks: Amsterdam-Rotterdam Bank N.V., Amsterdam . Banca Cornmerciale Italiana, Milan Creditanctalt-Bankverein, Vienna . Deutsche Bank AG, Frankfurt (Main) . Midland Bank Ltd., London Societe Generale de Banque S.A., Brusscls Societe Generale, Paris