Exhibit 99.2
| Performance overview and strategic initiatives Dr. Josef Ackermann Chairman of the Management Board 5 February 2009 Performance overview and strategic initiatives Dr. Josef Ackermann Chairman of the Management Board 5 February 2009 |
| AgendaAgenda Agenda 1 Results in summaryy 2 Drivers of fourth-quarter performance 3 Near-term strategic initiatives 4 Prospects for core businesses in 2009 Investor Relations 02/09 · 2 |
| Results in summaryResults in summary ..Fourth quarter 2008: Net loss of EUR 4.8 bn Tier I capital ratio of 10 1% consistent with target ..Full year 2008: Net loss of EUR 3.9 bn ..Tier I capital ratio of 10.1%, consistent with target ..Leverage ratio* of 28 ahead of target ..Leverage ratio of 28, ahead of target ..Reduction of legacy exposure in key areasgy p y ..Significant reduction in trading assets Investor Relations 02/09 · 3 * Per target definition Results in summaryResults in summary ..Fourth quarter 2008: Net loss of EUR 4.8 bn Tier I capital ratio of 10 1% consistent with target ..Full year 2008: Net loss of EUR 3.9 bn ..Tier I capital ratio of 10.1%, consistent with target ..Leverage ratio* of 28 ahead of target ..Leverage ratio of 28, ahead of target ..Reduction of legacy exposure in key areasgy p y ..Significant reduction in trading assets Investor Relations 02/09 · 3 * Per target definition |
| 2008 in context of Deutsche Bank’s management agenda In EUR bn 2008 in context of Deutsche Bank s management agenda Net revenues Net income Tier I capital Mark-downs Net revenues Net revenues Net income Tier I capital 26.5 25.6 28.5 30.7 2.3 3.5 6.1 6.5 22 7 21 9 23.5 28.3 21 6 31.1 7.0 21.3 21.9 0.4 1.4 2.5 22.7 21.9 18.7 21.6 13.5 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 (3.9) ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 Investor Relations 02/09 · 4 Note: 2002-2005 based on U.S. GAAP, 2006 onwards based on IFRS 2008 in context of Deutsche Bank’s management agenda In EUR bn 2008 in context of Deutsche Bank s management agenda Net revenues Net income Tier I capital Mark-downs Net revenues Net revenues Net income Tier I capital 26.5 25.6 28.5 30.7 2.3 3.5 6.1 6.5 22 7 21 9 23.5 28.3 21 6 31.1 7.0 21.3 21.9 0.4 1.4 2.5 22.7 21.9 18.7 21.6 13.5 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 (3.9) ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 Investor Relations 02/09 · 4 Note: 2002-2005 based on U.S. GAAP, 2006 onwards based on IFRS |
| AgendaAgenda Agenda 1 Results in summaryy 2 Drivers of fourth-quarter performance 3 Near-term strategic initiatives 4 Prospects for core businesses in 2009 Investor Relations 02/09 · 5 |
| Drivers of fourth-quarter performance in summary Drivers of fourth quarter performance in summary Business IBIT*, in EUR bn Key drivers Business CB&S ..Global Markets: Business model exposed to exceptionally turbulent markets Corporate Finance: Leveraged finance write backs(5.8) in EUR bn Key drivers ..Corporate Finance: Leveraged finance write-backs counterbalance declines in Advisory, ECM ..Record revenues driven by Trade Finance, Cash Management GTB ..Record revenues driven by Trade Finance, Cash Management ..Sustained cost discipline 0.3 Si ifi t t i i t d th ti l it i AWM ..Significant asset impairments and other exceptional items in Asset Management ..Falls in equity markets impact portfolio and fund management (0.9) PBC ..Lower client activity in investment products ..Impact of severance charges 0.1 Investor Relations 02/09 · 6 * Income (loss) before income taxes Drivers of fourth-quarter performance in summary Drivers of fourth quarter performance in summary Business IBIT*, in EUR bn Key drivers Business CB&S ..Global Markets: Business model exposed to exceptionally turbulent markets Corporate Finance: Leveraged finance write backs(5.8) in EUR bn Key drivers ..Corporate Finance: Leveraged finance write-backs counterbalance declines in Advisory, ECM ..Record revenues driven by Trade Finance, Cash Management GTB ..Record revenues driven by Trade Finance, Cash Management ..Sustained cost discipline 0.3 Si ifi t t i i t d th ti l it i AWM ..Significant asset impairments and other exceptional items in Asset Management ..Falls in equity markets impact portfolio and fund management (0.9) PBC ..Lower client activity in investment products ..Impact of severance charges 0.1 Investor Relations 02/09 · 6 * Income (loss) before income taxes |
| CB&S: Losses in specific trading businessesCB&S: Losses in specific trading businesses () (1.7) CB&S: Losses in specific trading businesses 4Q2007 4Q2008 CB&S Total Revenues, in EUR bn 2.3 CB&S Total 4Q2007: EUR 3.8 bn 4Q2008: EUR (3.8) bn CDO Subprime (0.1) RMBS (0.2) Leveraged Finance write-backs (net): 0.8 0.5 0.3 0.9 0.1 0.1 0.6 0.0 0.6 0.9 0.2 0.3 00 0.7 CRE (0.2) (0.4) (1.1) (0.5) (0.3) 0.0 (3 4) (3.4) Origination Advisory FX / Equity Equity Prop Equity Credit Monoline Mark-Other Money Cash / Trading Derivatives Trading reserves downs* market / Prime (incl. Prop) Sales & Investor Relations 02/09 · 7 * Excl. monoline reserves Note: Figures may not add up due to rounding differences Trading Rates Services |
| Unprecedented conditions in the quarter Basis risk Correlation Unprecedented conditions in the quarter Basis risk CDS bond-basis funding spread, in bps 225 300 EURJPY-Nikkei correlation, in % Correlation 70 .90 (75) 0 75 150 30 .50 70 (75) Volatility Liquidity 1Q 2Q 3Q 4Q 2Q 3Q 4Q 30 1Q EuroStoxx volatility 100 3M Euribor — 3M Eonia swap rate, in bps 150 200 0 50 1Q 2Q 3Q 4Q 0 50 100 1Q 2Q 3Q 4Q Investor Relations 02/09 · 8 1Q 2Q 3Q 4Q Source: Bloomberg, DB analysis 1Q 2Q 3Q 4Q Unprecedented conditions in the quarter Basis risk Correlation Unprecedented conditions in the quarter Basis risk CDS bond-basis funding spread, in bps 225 300 EURJPY-Nikkei correlation, in % Correlation 70 .90 (75) 0 75 150 30 .50 70 (75) Volatility Liquidity 1Q 2Q 3Q 4Q 2Q 3Q 4Q 30 1Q EuroStoxx volatility 100 3M Euribor — 3M Eonia swap rate, in bps 150 200 0 50 1Q 2Q 3Q 4Q 0 50 100 1Q 2Q 3Q 4Q Investor Relations 02/09 · 8 1Q 2Q 3Q 4Q Source: Bloomberg, DB analysis 1Q 2Q 3Q 4Q |
| These conditions impacted Global Markets’ business model These conditions impacted Global Markets business model ... Business model positioning Impact Investment into flow products and technology Reaped benefits of “Flight to quality” .. Business model positioning Impact Risk transformation and distribution model Limited “toxic asset” writedowns .. Broad product and geographical footprint Market dislocations affect specific High growth, diversified revenue streams .. Prop trading: Relative value strategies Scale: Market leadership in key areas Market dislocations affect specific positions / relationships between assets Volatility exposes illiquidity of large .. .. Scale: Market leadership in key areas Complexity: Customised, structured products notional positions Exposure to volatility and correlation risk .. .. Investor Relations 02/09 · 9 These conditions impacted Global Markets’ business model These conditions impacted Global Markets business model ... Business model positioning Impact Investment into flow products and technology Reaped benefits of “Flight to quality” .. Business model positioning Impact Risk transformation and distribution model Limited “toxic asset” writedowns .. Broad product and geographical footprint Market dislocations affect specific High growth, diversified revenue streams .. Prop trading: Relative value strategies Scale: Market leadership in key areas Market dislocations affect specific positions / relationships between assets Volatility exposes illiquidity of large .. .. Scale: Market leadership in key areas Complexity: Customised, structured products notional positions Exposure to volatility and correlation risk .. .. Investor Relations 02/09 · 9 |
| leading to losses in key businesses... leading to losses in key businesses Business 4Q challenges Revenues DB positioning 4Q2008, in EUR bn Business 4Q challenges ..Breakdown / inversion of Bond-CDS basisCredit Trading Prop Revenues (1.0) DB positioning ..Extreme illiquidity ..Correlation to HF strategies ..Convertible dislocations Prop Global Credit ( ) ..Relative value strategies ..Specific positions ..Increased sovereign risk ..Short-selling restrictions Global Credit Trading (2.4) ..Customised client solutions Global Equity Derivatives ..Sustained high correlation ..Extreme volatility(1.7) (institutional and retail) ..Structures required complex risk retention Equity Prop Trading (0.4) ..Relative value strategies ..Specific positions ..Severe market moves ..Breakdown / inversion of relationships between assets Investor Relations 02/09 · 10 relationships between assets leading to losses in key businesses... leading to losses in key businesses Business 4Q challenges Revenues DB positioning 4Q2008, in EUR bn Business 4Q challenges ..Breakdown / inversion of Bond-CDS basisCredit Trading Prop Revenues (1.0) DB positioning ..Extreme illiquidity ..Correlation to HF strategies ..Convertible dislocations Prop Global Credit ( ) ..Relative value strategies ..Specific positions ..Increased sovereign risk ..Short-selling restrictions Global Credit Trading (2.4) ..Customised client solutions Global Equity Derivatives ..Sustained high correlation ..Extreme volatility(1.7) (institutional and retail) ..Structures required complex risk retention Equity Prop Trading (0.4) ..Relative value strategies ..Specific positions ..Severe market moves ..Breakdown / inversion of relationships between assets Investor Relations 02/09 · 10 relationships between assets |
| However flow businesses performed wellHowever, flow businesses performed well Foreign Exchange Money Markets(1) Revenue development, 2006-2008 Foreign Exchange Money Markets x2.3 x3.6 Rates(2) 2006 2007 2008 2006 2007 2008 +12% FX / MM / Rates 2007: ~30% of Global Markets revenues Investor Relations 02/09 · 11 2006 2007 2008 (1) Excluding prop (2) Core Rates Trading excluding municipals and prop However flow businesses performed wellHowever, flow businesses performed well Foreign Exchange Money Markets(1) Revenue development, 2006-2008 Foreign Exchange Money Markets x2.3 x3.6 Rates(2) 2006 2007 2008 2006 2007 2008 +12% FX / MM / Rates 2007: ~30% of Global Markets revenues Investor Relations 02/09 · 11 2006 2007 2008 (1) Excluding prop (2) Core Rates Trading excluding municipals and prop |
| GTB: Another successful quarter and yearGTB: Another successful quarter and year Income before income taxes, in EUR m 2004 — 20082008 quarterly development 1,106 291 283 >4x 2004 20082008 quarterly development 705 945 281283 433 705 250 254 1Q 2Q 3Q 4Q 2004 2005 2006 2007 2008 Investor Relations 02/09 · 12 Note: 2004-2005 based on U.S. GAAP and on structure as of 2006, 2006 onwards based on IFRS and on latest structure GTB: Another successful quarter and yearGTB: Another successful quarter and year Income before income taxes, in EUR m 2004 — 20082008 quarterly development 1,106 291 283 >4x 2004 20082008 quarterly development 705 945 281283 433 705 250 254 1Q 2Q 3Q 4Q 2004 2005 2006 2007 2008 Investor Relations 02/09 · 12 Note: 2004-2005 based on U.S. GAAP and on structure as of 2006, 2006 onwards based on IFRS and on latest structure |
| AWM was impacted by asset impairments and exceptional itemsAWM was impacted by asset impairments and exceptional items 242 Income (loss) before income taxes, in EUR m 188 (95) A t M t 4Q2008 specific items (95) Asset Management: ..Impairment DWS Scudder (302) ..Impairment RREEF infrastructure asset (270) Seed capital impairments* (164) (860) ..Seed capital impairments (164) ..European money market fund injections (92) Private Wealth Management: ..Auction Rate Preferred / Auction Rate (860) Auction Rate Preferred / Auction Rate Securities settlement (41)1Q 2Q 3Q 4Q 2008 Investor Relations 02/09 · 13 * Includes other investments AWM was impacted by asset impairments and exceptional itemsAWM was impacted by asset impairments and exceptional items 242 Income (loss) before income taxes, in EUR m 188 (95) A t M t 4Q2008 specific items (95) Asset Management: ..Impairment DWS Scudder (302) ..Impairment RREEF infrastructure asset (270) Seed capital impairments* (164) (860) ..Seed capital impairments (164) ..European money market fund injections (92) Private Wealth Management: ..Auction Rate Preferred / Auction Rate (860) Auction Rate Preferred / Auction Rate Securities settlement (41)1Q 2Q 3Q 4Q 2008 Investor Relations 02/09 · 13 * Includes other investments |
| PBC: Lower investment product revenues and rise in provisionsPBC: Lower investment product revenues and rise in provisions Income before income taxes, in EUR m 328 304 262 4Q vs. 3Q2008: Operating items:Operating items: ..Lower revenues from investment products and deposits & payments (175) ..Higher provision for credit losses (47) 51 Specific items: ..Severance related to efficiency measures* (90) Gains from financial investments 97 1Q 2Q 3Q 4Q 2008 ..Gains from financial investments 97 Investor Relations 02/09 · 14 * Includes EUR 11 m severance impact from Infrastructure PBC: Lower investment product revenues and rise in provisionsPBC: Lower investment product revenues and rise in provisions Income before income taxes, in EUR m 328 304 262 4Q vs. 3Q2008: Operating items:Operating items: ..Lower revenues from investment products and deposits & payments (175) ..Higher provision for credit losses (47) 51 Specific items: ..Severance related to efficiency measures* (90) Gains from financial investments 97 1Q 2Q 3Q 4Q 2008 ..Gains from financial investments 97 Investor Relations 02/09 · 14 * Includes EUR 11 m severance impact from Infrastructure |
| AgendaAgenda Agenda 1 Results in summaryy 2 Drivers of fourth-quarter performance 3 Near-term strategic initiatives 4 Prospects for core businesses in 2009 Investor Relations 02/09 · 15 |
| Summary of near-term strategic initiatives Summary of near term strategic initiatives CB&S ..Recalibration of the investment banking business model GTB ..Continued growth initiatives AWM ..AM: Reengineering business model to current market levels AWM ..PWM: Efficiency program / selective growth opportunities G ff PBC ..Growth and efficiency program ..Postbank co-operation Investor Relations 02/09 · 16 Summary of near-term strategic initiatives Summary of near term strategic initiatives CB&S ..Recalibration of the investment banking business model GTB ..Continued growth initiatives AWM ..AM: Reengineering business model to current market levels AWM ..PWM: Efficiency program / selective growth opportunities G ff PBC ..Growth and efficiency program ..Postbank co-operation Investor Relations 02/09 · 16 |
| Global Markets: Historical revenue compositionGlobal Markets: Historical revenue composition Revenue breakdown Examples Illustrative ..Credit Prop trading ..Equity Prop trading Revenue breakdown Examples Highly illiquid iti15% ..Equity Prop trading ..Equity derivatives ..Money markets derivatives FX d i ti positions 60% ~60%~15% ~20% ~20% ~15% ..FX derivatives ..Credit securitisation ..Commodities trading ..Equity prime finance Medium / high liquidity~55% ~60% ~60% ..Equity prime finance ..FX and Money markets spot and forward trading E t b d t di Most liquid flo ~30% ~20% ~20% ~25% ..European govt. bond trading ..Cash equities flow 2004 2005 2006 2007 2008 Investor Relations 02/09 · 17 Global Markets: Historical revenue compositionGlobal Markets: Historical revenue composition Revenue breakdown Examples Illustrative ..Credit Prop trading ..Equity Prop trading Revenue breakdown Examples Highly illiquid iti15% ..Equity Prop trading ..Equity derivatives ..Money markets derivatives FX d i ti positions 60% ~60%~15% ~20% ~20% ~15% ..FX derivatives ..Credit securitisation ..Commodities trading ..Equity prime finance Medium / high liquidity~55% ~60% ~60% ..Equity prime finance ..FX and Money markets spot and forward trading E t b d t di Most liquid flo ~30% ~20% ~20% ~25% ..European govt. bond trading ..Cash equities flow 2004 2005 2006 2007 2008 Investor Relations 02/09 · 17 |
| We have moved swiftly to recalibrate this modelWe have moved swiftly to recalibrate this model Notional Capital Significant reduction in proprietary risk Continued management of legacy exposures U S RMBS exposures EPT* HedgesNotional Capital U.S. RMBS exposures (50)%(90)% EPT SABA* Hedges Net exposure Aug 07 Jan 08 Jun 08 Sep 08 Dec 08 Dec 07 Mar 08 Jun 08 Sep 08 Dec 08 Aug 07 Jan 08 Jun 08 Sep 08 Dec 08 Aggressive de-leveraging Reduced costs Gl b l M k t b l h t (U S GAAP f ) Gl b l M k t h d t Dec 07 Mar 08 Jun 08 Sep 08 Dec 08 Global Markets balance sheet (U.S. GAAP pro-forma) (33)% Global Markets headcount (39)% Investor Relations 02/09 · 18 Mar 08 Jun 08 Sep 08 Dec 08 Peak 2007 2009EEnd 2008 * SABA: Designated credit prop desk; EPT: Equity proprietary trading We have moved swiftly to recalibrate this modelWe have moved swiftly to recalibrate this model Notional Capital Significant reduction in proprietary risk Continued management of legacy exposures U S RMBS exposures EPT* HedgesNotional Capital U.S. RMBS exposures (50)%(90)% EPT SABA* Hedges Net exposure Aug 07 Jan 08 Jun 08 Sep 08 Dec 08 Dec 07 Mar 08 Jun 08 Sep 08 Dec 08 Aug 07 Jan 08 Jun 08 Sep 08 Dec 08 Aggressive de-leveraging Reduced costs Gl b l M k t b l h t (U S GAAP f ) Gl b l M k t h d t Dec 07 Mar 08 Jun 08 Sep 08 Dec 08 Global Markets balance sheet (U.S. GAAP pro-forma) (33)% Global Markets headcount (39)% Investor Relations 02/09 · 18 Mar 08 Jun 08 Sep 08 Dec 08 Peak 2007 2009EEnd 2008 * SABA: Designated credit prop desk; EPT: Equity proprietary trading |
| Resulting in a shift in the Global Markets business modelResulting in a shift in the Global Markets business model Shift in business model (revenue mix) Key actions ~5% Shift in business model (revenue mix) Key actions De-risk ..Scale-back / eliminate illiquid prop activity ..Sharply reduced retention of structured un- Highly illiquid iti Illustrative 55% ~15% ..Sharply reduced retention of structured un hedgeable risk ..Significant curtailment of non-collateralised counterparty risk positions 55% ~60% Attack market share ..Continue to accelerate market growth in products where we lack dominant positions ..Drive growth initiatives in commodities, cash Medium / High Liquidity ~40% g equities and prime brokerage Capitalise on strengths ..Capitalise on pre-existing dominant flow business f hi i FX M M k d Most liquid flo ~25% franchises in FX, Money Markets and rates ..Continue to apply technology to exploit wider margins and benefit from competitor consolidation flow 2004-2007 average 2009 Plan Investor Relations 02/09 · 19 age Resulting in a shift in the Global Markets business modelResulting in a shift in the Global Markets business model Shift in business model (revenue mix) Key actions ~5% Shift in business model (revenue mix) Key actions De-risk ..Scale-back / eliminate illiquid prop activity ..Sharply reduced retention of structured un- Highly illiquid iti Illustrative 55% ~15% ..Sharply reduced retention of structured un hedgeable risk ..Significant curtailment of non-collateralised counterparty risk positions 55% ~60% Attack market share ..Continue to accelerate market growth in products where we lack dominant positions ..Drive growth initiatives in commodities, cash Medium / High Liquidity ~40% g equities and prime brokerage Capitalise on strengths ..Capitalise on pre-existing dominant flow business f hi i FX M M k d Most liquid flo ~25% franchises in FX, Money Markets and rates ..Continue to apply technology to exploit wider margins and benefit from competitor consolidation flow 2004-2007 average 2009 Plan Investor Relations 02/09 · 19 age |
| Corporate Finance: Recalibrating our platformCorporate Finance: Recalibrating our platform ..Commercial Real Estate ..Reengineer Leveraged FinanceReposition ..Sectors: Financial Institutions, Natural Resources ..Countries: Selected Europe, China, Brazil ..Products: M&A and ‘rescue’ advisory ..Maintain commitment to German mid-cap Invest p ..Align sales forces and client universe within Global Bankingg g ..Selective efficiency measures Realign Investor Relations 02/09 · 20 Corporate Finance: Recalibrating our platformCorporate Finance: Recalibrating our platform ..Commercial Real Estate ..Reengineer Leveraged FinanceReposition ..Sectors: Financial Institutions, Natural Resources ..Countries: Selected Europe, China, Brazil ..Products: M&A and ‘rescue’ advisory ..Maintain commitment to German mid-cap Invest p ..Align sales forces and client universe within Global Bankingg g ..Selective efficiency measures Realign Investor Relations 02/09 · 20 |
| Global Transaction Banking: Continued growth agendaGlobal Transaction Banking: Continued growth agenda Expansion into new markets ..Increase penetration of existing client base in core markets ..Leverage ‘flight to quality’ opportunities ..Monitor opportunities to expand by bolt-on acquisition ..Monitor opportunities to expand by bolt on acquisition ..Target profitable lower mid-cap corporate client groups Attract new clients ..Leverage existing technologies and introduce integrated systems to offer clients robust global / cross-regional solutions ..Provide state of the art risk mitigation support to clients Develop ..Develop flexible offerings in high growth products ( d FX 4 C h* h l l t d itt bilproduct offering (e.g. cards, FX 4 Cash*, wholesale custody, remittances, mobile payments) Investor Relations 02/09 · 21 * Platform for low-value FX payments Global Transaction Banking: Continued growth agendaGlobal Transaction Banking: Continued growth agenda Expansion into new markets ..Increase penetration of existing client base in core markets ..Leverage ‘flight to quality’ opportunities ..Monitor opportunities to expand by bolt-on acquisition ..Monitor opportunities to expand by bolt on acquisition ..Target profitable lower mid-cap corporate client groups Attract new clients ..Leverage existing technologies and introduce integrated systems to offer clients robust global / cross-regional solutions ..Provide state of the art risk mitigation support to clients Develop ..Develop flexible offerings in high growth products ( d FX 4 C h* h l l t d itt bilproduct offering (e.g. cards, FX 4 Cash*, wholesale custody, remittances, mobile payments) Investor Relations 02/09 · 21 * Platform for low-value FX payments |
| AWM: Market conditions impacted full year 2008 resultsAWM: Market conditions impacted full year 2008 results Net new money Income before income taxes Net new moneyIncome before income taxes 646 In EUR m In EUR bn Before specific items 27 (30)% Reported 646 267 207 15% 27 13 10ARP/S In EUR bn Specific items settlement EUR (0.1) bn (732) ..DWS Scudder impairment (0.3) ..Infrastructure impairment (0.3) ..Infrastructure investment (0.2) ..European money mkt fund injections (0.2) Sd it l l / i i t (0 2) (22) (732) Asset Management Private Wealth Management Asset Management Private Wealth Management ..Seed capital losses / impairments (0.2) 2007 2008 2007 2008 2007 2008 2007 2008 Investor Relations 02/09 · 22 Asset Management Private Wealth Management Asset Management Private Wealth Management AWM: Market conditions impacted full year 2008 resultsAWM: Market conditions impacted full year 2008 results Net new money Income before income taxes Net new moneyIncome before income taxes 646 In EUR m In EUR bn Before specific items 27 (30)% Reported 646 267 207 15% 27 13 10ARP/S In EUR bn Specific items settlement EUR (0.1) bn (732) ..DWS Scudder impairment (0.3) ..Infrastructure impairment (0.3) ..Infrastructure investment (0.2) ..European money mkt fund injections (0.2) Sd it l l / i i t (0 2) (22) (732) Asset Management Private Wealth Management Asset Management Private Wealth Management ..Seed capital losses / impairments (0.2) 2007 2008 2007 2008 2007 2008 2007 2008 Investor Relations 02/09 · 22 Asset Management Private Wealth Management Asset Management Private Wealth Management |
| AWM will reposition its platforms to a changed environmentAWM will reposition its platforms to a changed environment Reengineer platform to restore operating leverage at current market levels: Asset Reengineer platform to restore operating leverage at current market levels: ..Reposition exposure to European money-market fund business ..Right-size RREEF / infrastructure D i h d f d l tf Asset Management ..Downsize hedge fund platform ..Centralize shared services globally ..Cost reduction in mid / back office (marketing / real estate technology operations)(marketing / real estate, technology, operations) ..Efficiency program / performance improvement initiative Private Wealth Management yp g p p ..Capture new advisory / product opportunities ..Strengthen Discretionary Portfolio Management / Wealth Advisory Management ..Counter-cyclical hiring ..Monitor opportunities for selective bolt-on acquisitions Investor Relations 02/09 · 23 AWM will reposition its platforms to a changed environmentAWM will reposition its platforms to a changed environment Reengineer platform to restore operating leverage at current market levels: Asset Reengineer platform to restore operating leverage at current market levels: ..Reposition exposure to European money-market fund business ..Right-size RREEF / infrastructure D i h d f d l tf Asset Management ..Downsize hedge fund platform ..Centralize shared services globally ..Cost reduction in mid / back office (marketing / real estate technology operations)(marketing / real estate, technology, operations) ..Efficiency program / performance improvement initiative Private Wealth Management yp g p p ..Capture new advisory / product opportunities ..Strengthen Discretionary Portfolio Management / Wealth Advisory Management ..Counter-cyclical hiring ..Monitor opportunities for selective bolt-on acquisitions Investor Relations 02/09 · 23 |
| PBC: Respond to shifts in revenue mix and leverage benefits of PBC: Respond to shifts in revenue mix, and leverage benefits of ‘flight to quality’ Shift in revenue mix Substantial capture of new clients and deposits Shift in revenue mix Substantial capture of new clients and deposits 5.8 5.8 Net revenues, in EUR bn Total clients, in m Germany x Deposits(2), in EUR bn Investment products 0.8 13 8 14.6 64 83 (15)% +19 Consumer & Mortgage finance 13.8 2% Deposits & Payments Business dt 9.7 10.12% 8% 2007 2008 products Other(1) 31 Dec Net new 31 Dec 8% Investor Relations 02/09 · 24 2007 total clients 2008 (1) Including non-recurring items (2) Excl. sight deposits PBC: Respond to shifts in revenue mix and leverage benefits of PBC: Respond to shifts in revenue mix, and leverage benefits of ‘flight to quality’ Shift in revenue mix Substantial capture of new clients and deposits Shift in revenue mix Substantial capture of new clients and deposits 5.8 5.8 Net revenues, in EUR bn Total clients, in m Germany x Deposits(2), in EUR bn Investment products 0.8 13 8 14.6 64 83 (15)% +19 Consumer & Mortgage finance 13.8 2% Deposits & Payments Business dt 9.7 10.12% 8% 2007 2008 products Other(1) 31 Dec Net new 31 Dec 8% Investor Relations 02/09 · 24 2007 total clients 2008 (1) Including non-recurring items (2) Excl. sight deposits |
| PBC: Implementation of ‘Growth and Efficiency’ programPBC: Implementation of Growth and Efficiency program ..Advisory banking: Position for recovery in ..Advisory banking: Position for recovery in investment products via selective investments ..Consumer banking: Position for margin compression via cost-efficiency Business model PBC Advisory Banking Consumer Banking ..Leverage customer capture of prior year(s) ..Middle-office consolidation Efficiency measures ..Middle office consolidation ..Integration of credit operations ..Back-office efficiency Efficiency program ..Product and distribution synergies ..Joint purchasing / infrastructure synergies E t d t t i t fPostbank ..Expected run-rate pre-tax impact of EUR ~120-140 m within 3-4 years: — Cost / revenue: ~ 60%/40% — Deutsche Bank / Postbank: ~ 50%/50% Postbank co-operation Further details at a joint press conference in March 2009 Investor Relations 02/09 · 25 Deutsche Bank / Postbank: 50%/50% PBC: Implementation of ‘Growth and Efficiency’ programPBC: Implementation of Growth and Efficiency program ..Advisory banking: Position for recovery in ..Advisory banking: Position for recovery in investment products via selective investments ..Consumer banking: Position for margin compression via cost-efficiency Business model PBC Advisory Banking Consumer Banking ..Leverage customer capture of prior year(s) ..Middle-office consolidation Efficiency measures ..Middle office consolidation ..Integration of credit operations ..Back-office efficiency Efficiency program ..Product and distribution synergies ..Joint purchasing / infrastructure synergies E t d t t i t fPostbank ..Expected run-rate pre-tax impact of EUR ~120-140 m within 3-4 years: — Cost / revenue: ~ 60%/40% — Deutsche Bank / Postbank: ~ 50%/50% Postbank co-operation Further details at a joint press conference in March 2009 Investor Relations 02/09 · 25 Deutsche Bank / Postbank: 50%/50% |
| Business initiatives will be complemented by Group initiativesBusiness initiatives will be complemented by Group initiatives Complexity reduction ..Realign infrastructure complexity to recalibrated front-office requirements ..Reap full infrastructure savings from front-office simplification Offshoring ..Improve efficiency of outsourced functions ..Additional outsourcing / smartsourcing initiatives Realise onshore benefits Other efficiency ..Commoditisation of standardised businesses ..Realise onshore benefits efficiency initiatives ..Increasing consistency of processes across businesses ..Further develop longer-term performance systems Compensation model p g p y ..Option of ‘clawback’ in subsequent years ..Increase focus on Group performance Investor Relations 02/09 · 26 Business initiatives will be complemented by Group initiativesBusiness initiatives will be complemented by Group initiatives Complexity reduction ..Realign infrastructure complexity to recalibrated front-office requirements ..Reap full infrastructure savings from front-office simplification Offshoring ..Improve efficiency of outsourced functions ..Additional outsourcing / smartsourcing initiatives Realise onshore benefits Other efficiency ..Commoditisation of standardised businesses ..Realise onshore benefits efficiency initiatives ..Increasing consistency of processes across businesses ..Further develop longer-term performance systems Compensation model p g p y ..Option of ‘clawback’ in subsequent years ..Increase focus on Group performance Investor Relations 02/09 · 26 |
| AgendaAgenda Agenda 1 Results in summaryy 2 Drivers of fourth-quarter performance 3 Near-term strategic initiatives 4 Prospects for core businesses in 2009 Investor Relations 02/09 · 27 |
| CB&S: Outlook and prospectsCB&S: Outlook and prospects Environment Implications and opportunities for DB ..Leverage continued flight to quality O t it f h t ..Lower revenue pool ..Further industry concentration Environment Implications and opportunities for DB Global Markets ..Opportunity for share capture ..Advantage for ‘intact’ platforms ..Importance of ‘flow’ businesses Further industry concentration ..Competitor dislocations ..Sustained wider margins Li idit t bili i b t b l ..Value of risk solutions for clients ..Liquidity stabilizing, but below pre- crisis levels ..Importance of cost-efficiency ..Lower fee pool Corporate Finance ..Importance of cost efficiency ..Opportunities in ‘rescue’ advisory ..Importance of loan exposure management p ..Shift in advisory requirements ..Deteriorating credit environment Lower IPO activity Finance management ..Value of M&A / coverage relationships / Leveraged Finance ..Lower IPO activity ..Secondary equity / debt capital raising still in demand Investor Relations 02/09 · 28 CB&S: Outlook and prospectsCB&S: Outlook and prospects Environment Implications and opportunities for DB ..Leverage continued flight to quality O t it f h t ..Lower revenue pool ..Further industry concentration Environment Implications and opportunities for DB Global Markets ..Opportunity for share capture ..Advantage for ‘intact’ platforms ..Importance of ‘flow’ businesses Further industry concentration ..Competitor dislocations ..Sustained wider margins Li idit t bili i b t b l ..Value of risk solutions for clients ..Liquidity stabilizing, but below pre- crisis levels ..Importance of cost-efficiency ..Lower fee pool Corporate Finance ..Importance of cost efficiency ..Opportunities in ‘rescue’ advisory ..Importance of loan exposure management p ..Shift in advisory requirements ..Deteriorating credit environment Lower IPO activity Finance management ..Value of M&A / coverage relationships / Leveraged Finance ..Lower IPO activity ..Secondary equity / debt capital raising still in demand Investor Relations 02/09 · 28 |
| Global Markets: Opportunity to gain share despite lowerGlobal Markets: Opportunity to gain share, despite lower revenues Sales & Trading: Global revenue pool* Significant market share up for capture Sales & Trading: Global revenue pool In EUR bn Significant market share up for capture Fixed Income Equity DB Merged or exited Remainder 134 136 112 ~(17)% Current DB rank # 2U.S. IRD 82 112 # 2EM Bonds # 1EU Investment Grade Credit 2006 2007 2008E 2009E # 2Global Fixed Income Investor Relations 02/09 · 29 * Deutsche Bank estimates of top-15 major firms; underlying revenues excluding writedowns Source: Company reporting, Greenwich Associates Note: IRD: Interest Rate Derivatives Global Markets: Opportunity to gain share despite lowerGlobal Markets: Opportunity to gain share, despite lower revenues Sales & Trading: Global revenue pool* Significant market share up for capture Sales & Trading: Global revenue pool In EUR bn Significant market share up for capture Fixed Income Equity DB Merged or exited Remainder 134 136 112 ~(17)% Current DB rank # 2U.S. IRD 82 112 # 2EM Bonds # 1EU Investment Grade Credit 2006 2007 2008E 2009E # 2Global Fixed Income Investor Relations 02/09 · 29 * Deutsche Bank estimates of top-15 major firms; underlying revenues excluding writedowns Source: Company reporting, Greenwich Associates Note: IRD: Interest Rate Derivatives |
| Harvest benefits of recent strategic investmentsHarvest benefits of recent strategic investments Example: Commodities Example: US Cash Equities Example: Commodities Example: US Cash Equities 6% 7% McLagan Cash Equities market share 16 Revenues in EUR bn +85% Best Equity House In North America(June 2008)Commodity Derivatives House of the Year (Jan 2009) 3% 4% 5% 6% 1.6x(Jan 2009) 3% 2Q08 4Q07 2Q07 4Q06 2Q06 Example: Prime Brokerage 2006 2007 2008 Number of clients +55% World’s Best Prime Broker (March 2008) Investor Relations 02/09 · 30 Source: Company reporting, DB analysis 2005 2006 2007 2008 Harvest benefits of recent strategic investmentsHarvest benefits of recent strategic investments Example: Commodities Example: US Cash Equities Example: Commodities Example: US Cash Equities 6% 7% McLagan Cash Equities market share 16 Revenues in EUR bn +85% Best Equity House In North America(June 2008)Commodity Derivatives House of the Year (Jan 2009) 3% 4% 5% 6% 1.6x(Jan 2009) 3% 2Q08 4Q07 2Q07 4Q06 2Q06 Example: Prime Brokerage 2006 2007 2008 Number of clients +55% World’s Best Prime Broker (March 2008) Investor Relations 02/09 · 30 Source: Company reporting, DB analysis 2005 2006 2007 2008 |
| Improved margins and industry concentration favourImproved margins and industry concentration favour Deutsche Bank Higher bid-offer spreads (indexed) Higher volumes, greater concentration 300 230 Higher bid offer spreads (indexed) Higher volumes, greater concentration Interest Rate Options Interest rate ti 100 230 140 150 160 FX swaps/fwds (index) me options Before crisis During Current stabilised levels 110 120 130 utstanding ( asing volum 680 500 U.S. / European single-name CDS 80 90 100 Equity optionsNotional ou Increa 100 Before crisis During Current stabilised 400 600 800 1,000 Herfindahl index Increasing concentration Investor Relations 02/09 · 31 levels Source: DB analysis Improved margins and industry concentration favourImproved margins and industry concentration favour Deutsche Bank Higher bid-offer spreads (indexed) Higher volumes, greater concentration 300 230 Higher bid offer spreads (indexed) Higher volumes, greater concentration Interest Rate Options Interest rate ti 100 230 140 150 160 FX swaps/fwds (index) me options Before crisis During Current stabilised levels 110 120 130 utstanding ( asing volum 680 500 U.S. / European single-name CDS 80 90 100 Equity optionsNotional ou Increa 100 Before crisis During Current stabilised 400 600 800 1,000 Herfindahl index Increasing concentration Investor Relations 02/09 · 31 levels Source: DB analysis |
| AWM: Outlook and prospectsAWM: Outlook and prospects Environment Implications and opportunities for DB ..Reengineer to restore operating l Environment Implications and opportunities for DB ..Lower equity valuations ..De-leveraging impacts alternative asset classes leverage ..Efficiency gains ..Value of franchise strengths (Global Asset Management asset classes ..Customer ‘flight to simplicity’ ..Competitor dislocations and diversified product offering) ..Competitor dislocations ..Fundamental trends intact (private retirement savings, wealth creation) Private Wealth Management ..Efficiency gains ..Leverage prior year new money gain ..Opportunities for market share creation)Management capture ..Product development Investor Relations 02/09 · 32 AWM: Outlook and prospectsAWM: Outlook and prospects Environment Implications and opportunities for DB ..Reengineer to restore operating l Environment Implications and opportunities for DB ..Lower equity valuations ..De-leveraging impacts alternative asset classes leverage ..Efficiency gains ..Value of franchise strengths (Global Asset Management asset classes ..Customer ‘flight to simplicity’ ..Competitor dislocations and diversified product offering) ..Competitor dislocations ..Fundamental trends intact (private retirement savings, wealth creation) Private Wealth Management ..Efficiency gains ..Leverage prior year new money gain ..Opportunities for market share creation)Management capture ..Product development Investor Relations 02/09 · 32 |
| PBC: Outlook and prospectsPBC: Outlook and prospects Environment Implications and opportunities for DB ..Near-term shift in revenue mix Environment ..Leverage new clients and deposit flows Implications and opportunities for DB — ‘Flight to simplicity’ ..Margin compression in deposits ..Efficiency gains ..Consolidation in German market ..Potential recovery in investment products ..Opportunities for share capture ..Opportunities for selective investments in ..Further pressure on credit quality Advisory banking ..Strengthen of collections and recoveries organisationorganisation ..Added Leverage from Postbank co-operation Investor Relations 02/09 · 33 PBC: Outlook and prospectsPBC: Outlook and prospects Environment Implications and opportunities for DB ..Near-term shift in revenue mix Environment ..Leverage new clients and deposit flows Implications and opportunities for DB — ‘Flight to simplicity’ ..Margin compression in deposits ..Efficiency gains ..Consolidation in German market ..Potential recovery in investment products ..Opportunities for share capture ..Opportunities for selective investments in ..Further pressure on credit quality Advisory banking ..Strengthen of collections and recoveries organisationorganisation ..Added Leverage from Postbank co-operation Investor Relations 02/09 · 33 |
| Summary: Looking forward in 2009Summary: Looking forward in 2009 ..Capital ratios remain solid Reduced exposure to legacy positions ..Reduced exposure to legacy positions ..Trading assets in key areas have been significantly reducedg y g y ..Strong liquidity and funding base ..Cost-efficiency measures underway ..Repositioning businesses to the current environment Investor Relations 02/09 · 34 Summary: Looking forward in 2009Summary: Looking forward in 2009 ..Capital ratios remain solid Reduced exposure to legacy positions ..Reduced exposure to legacy positions ..Trading assets in key areas have been significantly reducedg y g y ..Strong liquidity and funding base ..Cost-efficiency measures underway ..Repositioning businesses to the current environment Investor Relations 02/09 · 34 |
| Cautionary statementsCautionary statements Cautionary statements Unless otherwise indicated, the financial information provided herein has been prepared under International Financial It is preliminary and unaudited and may subject adjustments based the ReportingReporting StandardsStandards (IFRS)(IFRS). It is preliminary and unaudited and may bebe subject toto adjustments based onon the preparation of the full set of financial statements for 2008. This presentation also contains forward-looking statements. Forward-looking statements are statements that are not historical facts;; theyy include statements about our beliefs and exppectations and the assumpptions underlyyging them. These statements are based on plans, estimates and projections as they are currently available to the management of Deutsche Bank. Forward-looking statements therefore speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events. By their very nature, forward-looking statements involve risks and uncertainties. A number of important factors could therefore cause actual results to differ materially from those contained in any forward-looking statement. Such factors include the conditions in the financial markets in Germany, in Europe, in the United States and elsewhere from which we derive a substantial portion of our revenues and in which we hold a substantial portion of our assets the development ofderive a substantial portion of our revenues and in which we hold a substantial portion of our assets, the development of asset prices and market volatility, potential defaults of borrowers or trading counterparties, the reliability of our risk management policies, procedures and methods, and other risks referenced in our filings with the U.S. Securities and Exchange Commission. Such factors are described in detail in our Form 20-F and Form 6-K filed with the SEC on 26 available upon request or can be downloaded from www.deutsche-bank.com/irMarch 2008 and 30 October 2008, respectively, under the heading “Risk Factors.” Copies of this document are readily . This presentation contains non-IFRS financial measures. For a reconciliation to directly comparable figures reported Investor Relations 02/09 · 35 under IFRS refer to the 4Q2008 Financial Data Supplement, which is accompanying this presentation and available on our Investor Relations website at www.deutsche-bank.com/ir. |