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financial transparency. Jürgen Fitschen, Anshu Jain Investor Day, Frankfurt, 11 September, 2012
Deutsche Bank
Press conference, Frankfurt, 11 September 2012
Deutsche Bank
Deutsche Bank:Winning in a changed environment Jürgen Fitschen and Anshu Jain,Co-Chairmen of the Management Board and the Group Executive Committee
Deutsche Bank Jürgen Fitschen, Anshu Jain Press conference, 11 September 2012
financial transparency.
Agenda
9/25/2012
1
Vision
1 Operating environment
Operational excellence and financial aspiration
2
4
Cultural change5
Strategy 2015+: recalibrating the Bank3
Summary6
Deutsche Bank financial transparency. Jürgen Fitschen, Anshu Jain Press conference, 11 September 2012
We face a challenging medium-term environment
2
Continued dependence on policy stimulus
Significant, prolonged deleveraging ahead
Changing global demographics
Urbanization and financial deepening in emerging markets
Fractured relationship with society
Restrictive regulatory landscape
Transformation of competitive landscape
Technological advancements
Megatrends drive significant
opportunities
Unprecedented pressure on banks
Low growth; further potential for shocks
Macro-economic challenges
Deutsche Bank financial transparency. Jürgen Fitschen, Anshu Jain Press conference, 11 September 2012
In this environment, the banking industry shrinks…
3
1990s 2011
Has shrunk in previous crises…Share of total assets held by second tier banks in Japan(1)
Number of commercial banks in the US
1929 1933
~ 20,000
~ 10,000
~(50)%
~(20)ppt
60%
40%
Number of banks by geography
(33)%
2011
7,358
2006
8,680
1997
10,924(34)%
6,6787,345
10,043
(45)%
1,8982,050
3,420
…and is shrinking now
EU 15
201120061997 201120061997
(1) Denotes banks outside of the top 5Source: Japanese Bankers Association, FDIC, ECB, DB Research
Deutsche Bank financial transparency. Jürgen Fitschen, Anshu Jain Press conference, 11 September 2012
…and winners emerge
4
36
44
12
40
13
Investment banking(2)
Asset & Wealth Management(3)
Transaction banking(4)
51
(1) Subject to conclusion of domination agreement (2) Top 5 in FICC, equities, advisory; based on revenues; 2007 vs. 2011(3) Top 5 within top-20 global asset managers; based on AuM; 2007 vs. 2011 (4) Top 5 in transaction banking (incl. security services); based on revenues; 2008 vs. average 2010/2011 Source: Bloomberg, annual reports, IR websites, DB Research
(1)
% of business accruing to the top 5 firms
Pre-financial crisisPost-financial crisis
Global integrated firms survive… …and capture increased share of businessMarch 2008 Today
Deutsche Bank Jürgen Fitschen, Anshu Jain Press conference, 11 September 2012
financial transparency.
Clients will define future winners
5
Increasingly complex client needs… …define attributes of future winners
World-class financial strengthPrudent risk management
Sustainable fundingAsset gathering capability
24/7 access to liquidity globally
Access to worldwide markets
Trusted advice
Risk solutions
Trade facilitation
Wealth preservation and growth
Payments / flow of fundsSuperior client solutions
Diversified solutions providerAbility to deliver around the world
Flexible resource allocation
Culture of responsibility and excellence
Responsible product innovationNew balance of risk / reward
Operational excellence
Deutsche Bank Jürgen Fitschen, Anshu Jain Press conference, 11 September 2012
financial transparency.
Agenda
6
Vision
1 Operating environment
Operational excellence and financial aspiration
2
4
Cultural change5
Strategy 2015+: recalibrating the Bank3
Summary6
Deutsche Bank Jürgen Fitschen, Anshu Jain Press conference, 11 September 2012
financial transparency.
What is Deutsche Bank’s starting point?
7
Unique strengths… …and identified weaknesses
Long-term underperformance of some businesses
Core Tier 1 ratio weaker than peer average
Historical lack of earnings balance
Industry’s challenges with society
Significant potential for better cost efficiency
Deep roots in Europe’s strongest economy and long presence in EM
Strong funding position
Unique brand, IB franchise and undisputed home market leader
Prudent risk management
Strongly entrepreneurial, internationally diverse culture
Deutsche Bank financial transparency. Jürgen Fitschen, Anshu Jain Press conference, 11 September 2012
8
Our vision
We aspire to be the leading client-centric global universal bank
We commit to a culture that aligns risks and rewards; attracts and
develops talented individuals; fosters
teamwork and partnership; and is
sensitive to the society in which we operate
We serve shareholders best by putting our clients first and by building a global
network of balanced businesses
underpinned by strong capital and liquidity
We value our German roots and remain
dedicated to our global presence
Deutsche Bank Jürgen Fitschen, Anshu Jain Press conference, 11 September 2012
financial transparency.
To deliver our vision, we will utilize five key levers…
9
1 Focused portfolio of clients and regions based on our ability to generate value
Culture that sustainably rewards performance in line with societal values
Businesses built on the best people, best processes and consistent improvements
Strong capital base and rigorous risk-adjusted capital allocation
Disciplined cost management and consistent productivity gains
2
3
4
5
…which we will deliver across our regions, business pillars, and infrastructure
Clients
Culture
Competencies
Capital
Costs
Deutsche Bank Jürgen Fitschen, Anshu Jain Press conference, 11 September 2012
financial transparency.
Agenda
10
Vision
1 Operating environment
Operational excellence and financial aspiration
2
4
Cultural change5
Strategy 2015+: recalibrating the Bank3
Summary6
Deutsche Bank Jürgen Fitschen, Anshu Jain Press conference, 11 September 2012
financial transparency.
We will deliver our strategy through a clearly defined business model
11
Deutsche Bank
Non-Core Operations
Regional Management
Infrastructure
Private & Business Clients
Asset & Wealth
Management
Global Transaction
Banking
Corporate Banking & Securities
Deutsche Bank financial transparency. Jürgen Fitschen, Anshu Jain Press conference, 11 September 2012
12
Invest
Maintain / re-tool
Turnaround
Exit
...add value for clients?
...align well to trends /
outlook?
...meet performance
criteria?
...contribute to balance?
ILLUSTRATIVE
Operating portfolio implications: Does the business...
We will allocate assets dynamically across our portfolio
12
Deutsche Bank financial transparency. Jürgen Fitschen, Anshu Jain Press conference, 11 September 2012
13
Regions: We plan to grow our geographic footprint in Germany, the Americas and Asia Pacific
Germany— Build on existing strong platform as bank of choice— Increase loan volume by at least EUR 10 bn by 2015
Americas
— Position franchise to benefit from pro-cyclical recovery
— Capture market share, especially in Equities, Corporate Finance, core Latin America markets
Asia Pacific— Investment in CB&S flow franchise, GTB local large
cap clients and PWM in core markets— Deepen focus on India, China, Korea and ASEAN
Note: Excluding Corporate Investments and Consolidation & Adjustments (C&A)(1) Compound annual growth rate
EMEA ex Germany
— Streamline resource consumption in line with growth prospects
— Commit to the leading corporates and institutions
>20% 10-20% 0%
Indicative IBIT CAGR(1) aspiration 2011-2015
Deutsche Bank financial transparency. Jürgen Fitschen, Anshu Jain Press conference, 11 September 2012
Where we are today
Where we aspire tobe in 2015
How will weget there
— Challenging environment (continued low interest rates and investment activity)— Undisputed leadership in German retail banking— Profitable and resilient international franchise despite crisis— Smooth execution of integration without impacting ongoing business
— Amongst the leaders in Europe— Strong advisory business in Germany and international sweet spots— Focused consumer banking business under Postbank brand— Integrated platform and end-to-end process model
— Implement Phase 2 and 3 of our integration roadmap— Implement our European target operating model and sustain focused growth— Leverage relative strength to grow credit business at attractive margins— Maintain strong position as deposit gatherer
14
Businesses: Private & Business ClientsBuilding a powerhouse while improving efficiency
Deutsche Bank financial transparency. Jürgen Fitschen, Anshu Jain Press conference, 11 September 2012
15
Financial impactStrategic priorities
Focus on integrating Postbank
Increased efficiency in
advisory
De-risk / enhance asset efficiency
IBIT aspiration for PBC operating business(1), in EUR bn
2015
2011
IBIT
impa
ct
~3.0
2.0
Private & Business ClientsHow we will get there
~1.0
Key levers— Integrate Postbank / PBC Germany
— product standardization— straight through processing— front-end platform integration
— Improve cost efficiency in domestic banking
— Implement target operating model in international banking
— Continued disposal of Postbank non customer businesses
— Align resources to operating businesses
Status quo— Undisputed leadership in German retail
banking— Strong liquidity provides funding for
Group
Cumulative impact— CIR: ~60%— IBIT aspiration of ~EUR 3.0 bn
(1) All numbers exclude Non-Core Operations, 2011 numbers will therefore not reconcile to reported numbers
Deutsche Bank Jürgen Fitschen, Anshu Jain Press conference, 11 September 2012
financial transparency.
Corporate Banking & SecuritiesClear client demand for investment banking
16
Clients value investment bank proposition What do we do for clients“Linde has always valued the combination of investment banking, lending and commercial banking expertise from Deutsche Bank, so we are a firm believer in the universal banking model, including well-regulated derivative products.”– Prof. Dr. Reitzle, CEO Linde AG
“Choosing a bank to work with is all about available services and coverage -universal banks are best placed to help us with all our needs and we see investment banking services as particularly important.” – Henry R. Kravis, KKR
“Strong corporates need strong and stable banks with good investment banking products to help navigate the environment.” – Hans Dieter Pötsch, CFO VW AG & Porsche SE
— Transforming savings into capital
— Helping companies focus on core operations by managing commodities, rates risks
— Helping firms manage pension deficits
— Helping governments raise and manage debt
— Providing foreign exchange services for all types of clients
— Supporting world trade
— Connecting developed and developing markets
— Providing advice
— Providing market access
— Helping corporates access financing
Deutsche Bank financial transparency. Jürgen Fitschen, Anshu Jain Press conference, 11 September 2012
Where we are today
Where we aspire tobe in 2015
How will weget there
— Challenging market conditions – outlook remains uncertain — Subdued revenue pools with ongoing regulatory pressure— Leading franchise today and well-placed to consolidate success in new
environment
— Top 3 global investment bank— Low cost flow platform; cost income ratio of <65%— Post-tax RoE of ~15%, ex transfers to Non-Core Operations and AWM, Basel 3
(fully loaded)
— Fully committed to cultural change— EUR 1.9 bn cost savings by 2015— Consolidate European leadership and capture share in US— Focus, scale and efficiency driving sustainable, attractive returns
17
Corporate Banking & SecuritiesRetaining our leading position while recalibrating
Deutsche Bank financial transparency. Jürgen Fitschen, Anshu Jain Press conference, 11 September 2012
18
Corporate Banking & SecuritiesHow we will get there
Strategic priorities Financial impact (principal efficiency measures)
Cost savings aspiration for operating business, in EUR bn
Tota
lC
ost i
mpa
ct
1.9
0.4
0.8
0.2
0.5
Focus, scale and efficiency driving
sustainable returns
EUR 1.9 bncost savings
aspiration by 2015
Be at the forefront of cultural change
2012 savings (implemented)— Announced 900 front office headcount reduction; focus on
Equities/Corporate Finance in EU/APAC— Improved cost management
2013 / 14: Cost initiatives— Reduction of non-compensation costs— Platform realignment to emerging regulatory changes and
business performance
2014 / 15: Long term platform optimization— Lower compensation costs— Dynamic management of business portfolio
Infrastructure savings— Announced 600 infrastructure headcount
reduction— Front-to-back process optimization— Optimization of location footprint
Cumulative impact— CIR: <65%— Build upon top-3 positions(1)
(1) Top 3 rankings counted for each product and major region (Americas, Europe, Asia ex Japan, Japan). Products include a wide range of fixed income, equities and corporate finance products. Rankings generally on the basis of client market share, penetration or fees. Total of 77 markets analyzed
Deutsche Bank financial transparency. Jürgen Fitschen, Anshu Jain Press conference, 11 September 2012
Where we are today
Where we aspire tobe in 2015
How will weget there
— Challenging market environment and consequences of strategic review— Three business units now combined creating global AWM scale player— Businesses previously under strategic review (DWS Americas, DB Advisors,
Deutsche Insurance Asset Management, RREEF) are an integral part of AWM
— ~EUR 1.0 trillion assets under management (AuM) / invested assets (IA)— Streamlined, efficient and integrated platform:
— ~EUR 0.7 bn cost savings— IBIT aspiration of ~EUR 1.7 bn
— Launched integration project (“Fusion”) to deliver— Client-centric solutions— Cost efficiency
— Transfer Passive and 3rd Party Alternatives out of CB&S into AWM— Unlock synergies across AWM and other businesses
19
Note: Financials include CB&S Passive and 3rd Party Alternative Businesses and infrastructure allocation costs
Asset & Wealth ManagementWe aspire to double profitability through integration and efficiency
Deutsche Bank financial transparency. Jürgen Fitschen, Anshu Jain Press conference, 11 September 2012
20
Strategic priorities Financial impactIBIT aspiration for operating business(1), in EUR bn
Realize potential of underperforming businesses
Unlock revenue synergies by closer alignment to other DB businesses
Exploit megatrends: Clear investments in key customer segments, geographies
and asset classes
Drive efficiency gains from untapped synergies between AWM and passive businesses transferred from
CB&S
2015
2011
IBIT
impa
ct
Asset & Wealth ManagementHow we will get there
~0.3
~(0.1)
~0.8
~0.7
Key revenue levers— Focus on growth in UHNWI and EM
clients— Passive / alternative segments in focus— Leverage scale in active asset
managementKey cost levers— Eliminate duplication by integrating
3 previously separate businesses— Reorganize products and services
around distribution channels
Three solid pillars— Private Wealth Management— Retail & institutional Asset Management— Passive and 3rd party Alternatives
transferred from CB&S
Cumulative impact— ~EUR 1.0 trillion AuM/IA aspiration— Increase gross revenue margin
by ~5%
2012 cost base headwinds— Increase in cost base vs. 2011 primarily
driven by one-offs and FX effects
(1) All numbers exclude Non-Core Operations and include financial impact of passive asset management business transferred from CB&S, 2011 numbers will therefore not reconcile to reported numbers
~1.7
Deutsche Bank financial transparency. Jürgen Fitschen, Anshu Jain Press conference, 11 September 2012
21
Where we are today
Where we aspire tobe in 2015
How will weget there
— Environment with notable headwinds, but also significant growth opportunities— Track record of consistent high performance— Prepared to continue GTB’s profitable growth trajectory and gain market share
— Strengthened competitive positions in all strategic client segments, product areas and markets
— Solidified position as a critical pillar of Deutsche Bank— IBIT aspiration of ~EUR 2.4 bn in 2015
— Deepen relationships with existing and acquire new target clients— Invest in solutions, platforms and operational excellence— Continuously optimize business portfolio, resource utilization and global footprint— Drive synergies from closer collaboration with CB&S, AWM and PBC— Maintain strict cost, risk and capital discipline
Global Transaction BankingWe aspire to double profitability by investing in growth
Deutsche Bank financial transparency. Jürgen Fitschen, Anshu Jain Press conference, 11 September 2012
22
Global Transaction BankingHow we will get there
Financial impactStrategic priorities
Deepen relationships with clients, acquire
new clients
Invest in solutions, platforms and
operational excellence
Optimize business portfolio, resource
utilization and global footprint
Maintain strict cost, risk and capital
discipline
Closer collaboration with other businesses
IBIT aspiration for GTB operating business(1), in EUR bn
(1) GTB operating business is equal to reported segment as no planned transfer of assets from GTB to the Non-Core Operations unit (2) Reported numbers adjusted for deduction of estimated EUR 0.2 bn coverage cost allocation tin 2006, 2009, 2011 to be reflected in new business reporting structure
Commercial banking Netherlands turnaround— Increase cost and RWA efficiency— Optimize pricing levels and product offering
Grow Trust & Security Services / CashManagement Financial Institutions— Strengthen EUR and USD clearing positions — Expand corp. trust and sec. services offerings— Expand into under-penetrated client segments— Selective growth in Asia and Latin America
Grow Trade Finance & Cash Management Corporates— Targeted focus on multi-national companies— Global subsidiary business— Roll-out of financial supply chain products— Pre-export finance and export agency lending
Benefit from overall group efficiency measures
IBIT
impa
ct
2015 ~2.4
0.2
0.1
0.5
0.6
2006 0.5(2)
2011 1.0(2)
2009 0.8(2)
Deutsche Bank financial transparency. Jürgen Fitschen, Anshu Jain Press conference, 11 September 2012
Transaction banking in Asia
— Trade facilitation— Access to
worldwide markets
How we are helping our clients and driving growthComplex client needs
Financial innovation in Europe
— Risk solutions— Trusted advice
Retail banking in Germany
— Wealth preservation and growth
Corporate finance in the US
— Access to liquidity and worldwide markets
— Helping multi-national clients with supply chain and trade finance products in India, driving a >40% yoy revenue increase
— Helping BMW manage their GBP 3 bn UK pension scheme for 60,000 pensioners
— Strong pipeline of future demand, DB seen as a market leader
— Better products resulting in >100% increase in retail deposits since 2006
— Over 640,000 new mortgages since 2006
— Helping financial institutions access international equity markets e.g., capital raising for AIG, Fifth Third to replace government funding
23
While recalibrating, we still see significant areas of growth and will invest in them
Deutsche Bank financial transparency. Jürgen Fitschen, Anshu Jain Press conference, 11 September 2012
Where we are today
Where we aspire tobe in 2015
How will weget there
— Behind best-in-class operating efficiency— Silo structure leading to duplication in front and back offices— Excessive complexity— Unused potential of high-quality technology backbone
— Competitive cost structure— Improved organizational effectiveness and increased teamwork— Efficiency gains through standardization and automation
— Quality: improve services to clients and businesses— Flexibility: increase responsiveness by reducing fixed cost base— Control: invest further in robust environment— Cost: achieve world-class operating efficiency
24
InfrastructureKey to achieving operational excellence
Deutsche Bank Jürgen Fitschen, Anshu Jain Press conference, 11 September 2012
financial transparency.
Agenda
25
Vision
1 Operating environment
Operational excellence and financial aspiration
2
4
Cultural change5
Strategy 2015+: recalibrating the Bank3
Summary6
Deutsche Bank financial transparency. Jürgen Fitschen, Anshu Jain Press conference, 11 September 2012
26
Core Tier 1 goalsBasel 3 Core Tier 1 ratio, fully loaded
1Q 2015
>10%
31 Mar 2013
8%
1 Jan 2013
7.2%
June 2012
10.2%(1)
(1) Based on Basel 2.5
We will realize our capital goals organically…
Capital tool box
Retained earnings
Bonus retention
Other capital tool box measures
Accelerated deleveraging of non-core risk-weighted assets
Deutsche Bank Jürgen Fitschen, Anshu Jain Press conference, 11 September 2012
financial transparency. 27
…and will accelerate deleveraging by establishing a Non-Core Operations unit
Scope
RWA equivalent(1), 30 Jun 2012,
in EUR bn
CB&S
— Trading: securitization portfolio— Assets in run-off: CB&S monoline, legally and
regulatory challenged investments— IAS 39 assets
~100
Total ~135
PBC— Trading: Postbank structured credit portfolio— Assets and liabilities in run-off: non-core
portfolios
AWM — Assets in run-off: Sal. Oppenheim workout credit portfolio
CI— Trading: BHF bond portfolio— Operating assets: Actavis, Cosmopolitan, Maher,
BHF, real estate assets, industrial holdings
~20
~13
~3
Clear criteria used for identifying assets/liabilities in scope
(1) Pro-forma Basel 3 (fully loaded), RWAs include equivalent capital deduction items
Features
— Centralized coordination with Management Board-level accountability
— Separate disclosure from 4Q 2012 onwards
— Compensation aligned to deleveraging
— Reduction of ~EUR 45 bnby 1Q 2013
Deutsche Bank financial transparency. Jürgen Fitschen, Anshu Jain Press conference, 11 September 2012
28
Achieving operational excellence -We aim to save EUR 4.5 bn annually…
EUR 2.8 bn16% of businesses baseline cost base
EUR 1.7 bn23% of Infrastructure baseline cost base
TotalEUR 4.5 bn(5)
1.1
0.2
0.4
1.1(2)
AWM
CB&S
GTB
PBC
Total Business
Other COO(3)
& Corporate Centre(4)
Global BusinessServices
Global Technology
Total Infrastructure
0.7
0.4
0.6
0.2 0.3 0.40.8CB&S PBCGTB AWM
1.72.8
Note: Numbers may not add up due to rounding(1) Cost savings based on 1H2012 annualized cost base; cost savings targeted without including cost changes that relate to litigation, investments (CtA), severance
unrelated to new cost program; regulatory spend assumed constant(2) Thereof running Powerhouse (Postbank integration) initiatives: run rate 2015 savings of ~EUR 0.5 bn(3) Other COO includes Logistics, Corporate Security, and central coordination functions(4) Corporate Center includes Risk, Finance, Legal & Compliance (L/C), HR, Co-Chairmen, Regional Management(5) Thereof Corporate Investments, Other: run rate 2015 savings of ~EUR 0.1 bn
Business savings aspiration2015 yearly run-rate savings(1), in EUR bn
Infrastructure savings aspiration2015 yearly run-rate savings(1), in EUR bn
Deutsche Bank Jürgen Fitschen, Anshu Jain Press conference, 11 September 2012
financial transparency. 29
Achieving operational excellence –…by investing ~EUR 4 bn once
DB aspires to reduce its cost income ratio to <65% by 2015(1) Thereof: Corporate Investments, Other: run rate 2015 savings of ~EUR 0.1 bn; outstanding Powerhouse savings of ~EUR 0.5 bn mainly in IT(2) Thereof running Powerhouse (Postbank integration) initiatives: investments (CtA) of ~EUR 0.8 bn(3) Cost savings based on 1H2012 annualized cost base; cost savings targeted without including cost changes that relate to litigation, investments (CtA), severance
unrelated to new cost program; regulatory spend assumed constant
Our aspiration 2015In EUR bn
4.5
Structural leversSavings aspiration(3)
Sourcing excellence
Organizational streamlining
Front-to-back productivity
0.6
1.9
0.9
Footprint rationalization 0.3
—40 targeted sites for disposal—Max 40% share of infra staff
in prime locations
—Reduce from 10 to 8 layers —Increase average span of
control from 1:5.5 to 1:8
—Reduce vendor base by 25%—80%+ of spend with 500
vendors
—Increase level of automation to reduce cost per trade by ~20%
IT platform renewal 0.8—Magellan platform—Golden source for data
reference
Examples
Postbank CtAalready announced
Yearly run-rate
savings(1)
Incr. one-off
investment (CTA)(2)
Infra-structure 1.7
4.5
~4.0
Frontoffice 2.8
0.8
3.2
Deutsche Bank financial transparency. Jürgen Fitschen, Anshu Jain Press conference, 11 September 2012
30
Our financial aspiration
(1) Based on FY2012 expected revenues at Group level with differences between divisions(2) Net savings excluding impact of litigation and CtA. CtA also includes severances unrelated to new cost programme(3) Based on corporate tax rate guidance of 30-35%, Basel 3 fully loaded and average active equity (4) Basel 3 fully loaded
Aspiration 2015
Growth in line with marketGroup revenues(1)
EUR 4.5 bn savings Expenses(2)
<65%Cost-income ratio
>12%Post-tax RoE(3)
>10%Core Tier 1 ratio(4)
Deutsche Bank Jürgen Fitschen, Anshu Jain Press conference, 11 September 2012
financial transparency.
Agenda
31
Vision
1 Operating environment
Operational excellence and financial aspiration
2
4
Cultural change5
Strategy 2015+: recalibrating the Bank3
Summary6
Deutsche Bank financial transparency. Jürgen Fitschen, Anshu Jain Press conference, 11 September 2012
We acknowledge the need for cultural change
32
Performance culture
Cultural diversity
Entre-preneurialspirit
Teamwork and partnership
Long-term orientation and sustainability
Client focus
— Meritocracy— Execution and results
oriented— Crisis mobilization— Risk culture
— Speed and agility— Empowerment of business
leaders— Innovation
— Global culture— Strongly anchored in home
market— Respect for others— Ability to adapt and change
We are proud of the culture we have built Attributes we will emphasize
32
Deutsche Bank financial transparency. Jürgen Fitschen, Anshu Jain Press conference, 11 September 2012
We will be at the forefront of our industry’s cultural change
33
Our key actionsOur commitments
Realigning compensation
Linking our values to behavior
We will lead the industry on realigning compensation balance and practices
We will make our cultural values central to the way we manage our people
— Increase time horizon for bonus payouts to senior management
— Extend equity vesting period from 3 to 5 years— Remove interim payment on deferred bonuses;
implement ‘cliff vesting’— Reduce bonus payouts in relation to business performance— Create external independent review panel to examine
compensation practices— Adopt industry-leading standards on transparent disclosure
of deferred compensation
— Tighten sanctions for behavioral breaches— Increase weighting of personal behavior assessment in
promotion and pay decisions— Launch critical review of our business practices— Implement broad participative cultural change program led
by Co-Chairmen and GEC
Deutsche Bank Jürgen Fitschen, Anshu Jain Press conference, 11 September 2012
financial transparency.
We have already addressed many compensation issues
34
Early adoption of regulatory requirements
Better alignment to long-term performance
Strong behavioral focus
Stricter governance
Increased transparency
(1) Variable remuneration awarded including deferrals. No adjustments made for pay mix change in 2010 (EUR 742 m). Ratios excluding Postbank: 2010 14%, 2011 12%
Compensation practices have improved
Bonus(1) as % of net revenues has declined
11
15
1719
2022
2006 2007 2008 2009 20112010
Deutsche Bank Jürgen Fitschen, Anshu Jain Press conference, 11 September 2012
financial transparency.
We will be a pioneer in creating an external independent review panel to examine our compensation practices
35
Panel composition… ...and objectives
— Benchmark our compensation systems against industry best practice and regulatory requirements and intent
— Formulate core principles and minimum standards for future compensation structures and practices
— Help define the appropriate level of transparency and disclosure
— Independent external panel of senior and highly credible professionals from outside the financial services industry
— Industry leaders from Germany, UK, US and Asia Pacific
— Leading academic in the field— External compensation consultant
The panel's findings will influence 2012 year-end compensation
Deutsche Bank Jürgen Fitschen, Anshu Jain Press conference, 11 September 2012
financial transparency.
Agenda
36
Vision
1 Operating environment
Operational excellence and financial aspiration
2
4
Cultural change5
Strategy 2015+: recalibrating the Bank3
Summary6
Deutsche Bank financial transparency. Jürgen Fitschen, Anshu Jain Press conference, 11 September 2012
Our strategy in summary
37
Position Deutsche Bank as a winner in a changed environment
Strengthen our unique global platform and home market position
Further leverage integrated performance of our universal banking model
Achieve operational excellence
Build capital strength organically
Place Deutsche Bank at the forefront of cultural change in banking
1
2
3
4
5
financial transparency. Jürgen Fitschen, Anshu Jain Investor Day, Frankfurt, 11 September, 2012
Deutsche BankInvestor Relations
Press conference, Frankfurt, 11 September 2012
Deutsche Bank
Deutsche Bank:Winning in a changed environment Jürgen Fitschen and Anshu Jain,Co-Chairmen of the Management Board and the Group Executive Committee
Deutsche Bank Jürgen Fitschen, Anshu Jain Press conference, 11 September 2012
financial transparency.
This presentation contains forward-looking statements. Forward-looking statements are statements that are nothistorical facts; they include statements about our beliefs and expectations and the assumptions underlying them.These statements are based on plans, estimates and projections as they are currently available to themanagement 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 factorscould 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 andelsewhere from which we derive a substantial portion of our revenues and in which we hold a substantial portion ofour assets, the development of asset prices and market volatility, potential defaults of borrowers or tradingcounterparties, the implementation of our strategic initiatives, the reliability of our risk management policies,procedures and methods, and other risks referenced in our filings with the U.S. Securities and ExchangeCommission. Such factors are described in detail in our SEC Form20-F of 20 March 2012 under the heading “Risk Factors.” Copies of this document are readily available uponrequest or can be downloaded from www.db.com/ir.
This presentation also contains non-IFRS financial measures. For a reconciliation to directly comparable figuresreported under IFRS, to the extent such reconciliation is not provided in this presentation, refer to the 2Q2012Financial Data Supplement, which is accompanying this presentation and available at www.db.com/ir.
Cautionary statements
39
39