Strategy 2020: Delivering Value - Deutsche Bank · 1 Jürgen Fitschen and Anshu Jain 27 April 2015 Deutsche Bank Strategy 2020: Focusing Deutsche Bank to deliver value Client-centricity:

Deutsche Bank

Strategy 2020: Delivering Value Press Conference

Frankfurt, 27 April 2015

Jürgen Fitschen and Anshu Jain

Co-Chief Executive Officers

1


27 April 2015

Deutsche Bank Deutsche Bank

Strategy 2020: Focusing Deutsche Bank to deliver value

Client-centricity: placing our clients

at the centre of what we do

Keeping a global footprint

Maintaining a universal banking

product offering

Refocusing on clients who offer

mutually beneficial partnerships

Moving toward a more focused

geographic reach

Tightening our product perimeter –

not all things to all people

What’s constant What changes

A leading global bank based in Germany

Proactive stance on future regulatory direction and robust controls

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27 April 2015


Deutsche Bank’s unique positioning is a long-term competitive advantage

Market position of Deutsche Bank

Global model anchored in one of the world’s

strongest economies

Leading domestic retail franchise

positioned for multi-channel delivery

CB&S

GTB

Deutsche

AWM

PBC

Positioning of Deutsche Bank

Top 5

International reach with

strong home base in

Europe

Top 5-10

Top 1-3

Top 1-3

Top 5-10 Top 1-3

No. 1

No. 1

No. 1

No. 1(1)

(1) Among private sector banks Source: Dealogic, BVI, Coalition, Lipper, BCG, Scorpio, company data

Europe Global Germany

Capital markets expertise and global cash /

trade platform

Global asset and wealth proposition

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27 April 2015


Agenda

1 Taking stock

2 Strategy 2020

3 Delivering value

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27 April 2015


Taking stock: Strategy 2015+ achievements

Capital

position

Cultural

change

Resilience

Balance and

performance

Stronger capital position, with strong deleveraging, de-

risking and near-doubling of CET 1 ratio

Embedding deep-rooted cultural change

More resilient: Substantially invested in infrastructure and

regulatory compliance

Core business balance and performance: All core

businesses exceeding EUR 1 billion IBIT for the first time(1)

(1) In FY 2014

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27 April 2015


In 2012, we identified five key levers

Focused portfolio of clients and regions

based on our ability to generate value Clients

Culture that sustainably rewards

performance in line with societal values Culture

Disciplined cost management and

consistent productivity gains Costs

Businesses built on the best people and

world-class products Competencies

Capital Strong capital base and capital

management toolkit

In 2012, we identified five key levers

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27 April 2015


Capital: Significantly improved capital strength CRD4, fully loaded, in %

Leverage ratio CET1 ratio

~1.9x

Mar 2015

11.1

Jun 2012(1)

<6.0

Mar 2015

3.4

Jun 2012(1)

<2.0

~1.7x

431 >530 1.5 ~1.8

RWA, in EUR bn Leverage exposure, in EUR trn

(1) Estimates based on June 2012 Basel 3 / CRD4 rule interpretation

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27 April 2015


Competencies: Four EUR 1 billion+ businesses Reported IBIT, full year(1), in EUR bn

Profit growth outside investment banking…

2014

6.8

3.3

1.3

1.2

1.0

2012

5.2

2.9

1.5

0.7 0.2

CB&S

PBC

GTB

Deutsche AWM

Strategic priority: four strong pillars

IBIT in all four core businesses exceeds

EUR 1bn for the first time

Robust investment banking earnings

PBC, GTB, Deutsche AWM in 2014:

- 52% of core business IBIT

- IBIT up by ~50% since 2012

Performance, balance, diversification

52%

45%

…delivers a better balanced bank

(1) 2014 does not reflect C&A clear-out adjustments as per 1Q2015 disclosure Note: Figures may not add up due to rounding differences

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27 April 2015


Culture: Embedding deep-rooted cultural change

How we engaged our staff

+34% increase in risk culture and compliance trainings globally vs. prior year

Culture and conduct workshops with >6,000 bankers in CB&S

10 employee teams received Co-CEO sponsored “Living the Values” award

What’s different

Responsibility

for controls

~700 people added to strengthen controls

in businesses

Compensation

deferral 5 years max; strengthened clawbacks

Compensation

deferral Up to five years; strengthened clawbacks

Material risk

takers

compensation

Negative consequences for ~50 material

risk takers due to cultural considerations

Risk

governance

~180 transactions escalated through

Reputational Risk Management Process

Culture seminars for >400 MDs in Germany

Source: HR Culture initiative

Diversity ~25% of all senior leadership appointments

were female

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27 April 2015


Costs: Invested significantly in efficiency, controls and systems

Investments in our platform

CtA and CtB(3), in EUR bn

2014

2.3

2013

1.9

2012

1.6

Efficiency investments

Invested in sustainable,

efficient, scalable platforms

Implemented structural

initiatives to reinforce savings

Optimized front-to-back

processes

~5.8

(1) Communicated targets as of Investor Day 2012 (2) Includes EUR ~0.1bn cost savings in NCOU (3) Includes DB platform investments both within and outside OpEx; CtA: Cost-to-

Achieve, (OpEx & Powerhouse CtA, excluding severance payments); CtB: IT Change-the-Bank cost

Operational Excellence program delivered

Cost savings, in EUR bn

Regulatory investments

Enhanced regulatory

preparedness

Consolidated financial and

regulatory reporting processes

Strengthened regulatory

compliance

Business / stability investments

Standardized technology

Improved data integrity

Supported selected growth

1.7

2.8

4.5

Total

3.3

Infrastructure

1.1

Businesses(2)

2.2

FY14 target(1)

Achieved 2012-2014/

delta to FY15 target(1)

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27 April 2015


However, we have also faced significant setbacks

(1) Foreign Banking Organizations (FBO) / Comprehensive Capital Analysis and Review (CCAR) (2) Total Loss Absorbing Capacity (TLAC)

Environment

Regulatory bar raised:

‒ FBO / CCAR(1) rules in the US

‒ TLAC(2)

‒ Leverage ratios in Europe / US

‒ Bank levies

‒ CRD4 compensation rules

‒ Bank structure reforms /

German bank separation

Regulation

Costs of resolving legacy

issues and litigation soared,

particularly in the US

Costs of

legacy /

litigation

Record low interest rates taking

a toll on deposit gathering

business Macro

Cost of regulatory compliance

and new controls materially

higher than originally

foreseen Costs of

regulatory

compliance

Execution of efficiency drive

negatively impacted by high

operational and structural

complexity

Costs of

complexity

High level of optionality

maintained – at a cost Business

model

Execution

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27 April 2015


The efficiency drive has been largely offset by material cost increases

Adjusted Cost Base development(1)

In EUR bn

Note: Numbers may not add up due to rounding (1) Excludes Cost-to-Achieve, litigation, policyholder benefits and claims, other severances and smaller specific one-offs and impairments

(2) 1H 2012 x 2 as communicated at Investor Day 2012 (3) Mainly divestment of Cosmopolitan of Las Vegas, Tilney, Deutsche Card Services and BHF

2014

23.8

FX

(0.3)

Other cost

effects

~1.0

Regulatory &

control costs

~1.6

Portfolio

actions(3)

~(0.3)

OpEx savings

(3.3)

2012 OpEx

baseline(2)

25.1

■ Business growth ~0.5

■ Mandatory

wage increases ~0.3

■ Remaining ~0.2

~EUR 0.7bn run-rate

impact of portfolio

actions in 2015

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27 April 2015


Agenda

1 Taking stock

2 Strategy 2020

3 Delivering value

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27 April 2015


A rigorous strategy review process focused on delivering value

Dec 2014

Jan 2015

Feb 2015

Mar 2015

Apr 2015

Up to

90 days

Macro assumptions

Regulatory assumptions

Competitive landscape

Client / product trends

Range of models developed

Detailed strategic and financial assessment

Downside assessment

Model selection

Announcement: Strategy 2020

Detailed operating model and governance

implications

Environment

analysis

Competitive

position

Emphasis /

de-emphasis

Sustainable competitive advantages

Evolving challenges

Client segments

Product areas

Regions

Today

Strategic

models

Further detailing

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27 April 2015


Macro

US and Asia: recovery / sustainable growth

Europe: historically low interest rates persist

Rising geopolitical tensions create uncertainties

We analyzed our operating environment…

Key themes Outlook 2015 to 2020

Recovering

markets

Improving global outlook anchored to US and EM growth

Primary markets benefit from buoyant valuations

Return of volatility supports tentative recovery in fixed

income and currency markets

Tighter

regulation

Requirements for capital, leverage, liquidity and funding

continue to increase

Additional challenges arise from resolution, TLAC, bank

levies, RWA harmonization and continued subsidiarization

Improving

competitive

dynamics

Global universal leaders consolidate further

Business model choices: a transatlantic divide

Positive outlook

Negative outlook

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27 April 2015


…especially trends that affect our clients’ needs

Our clients are getting…

Wealthier and

more senior

Increasing demand for sophisticated wealth

transfer and protection

Emerging

markets

centered

Rising importance of large, emerging market

corporates

Technologically

savvy

Growing focus on convenience, price transparency,

product access and data-driven models

Capital markets

deepening

Growing demand / supply in capital market

funding and securitization in Europe and EM

Urban Increasing concentration of wealth in emerging

markets’ megacities

Strong sustained client demand for global, multi-product banking partnerships

Source: United Nations, BCG, McKinsey, Knight Frank, PWC

Global credit stock, 2010 vs. 2020

# transactions in US digital channels,

2014 vs. 2020

# of large corps in EM, 2010 vs. 2025

# of UHNWI in top 25 cities, 2013

vs. 2023

Population aged 60+, 2010 vs. 2050

+1.1bn

…leading to…

+128%

+322%

+34%

+84%

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27 April 2015


Our strategic levers remain critical, and we add a sixth

Emphasis for future

Reshaping our investment banking and retail

businesses and investing in the future

Expanding our focus on CET1 with a

commitment on leverage, RWA harmonization

and liquidity

Capital

Pulling all levers to deliver on costs Costs

Competencies

Focusing on those that value a mutually

beneficial partnership with their banks Clients

Continuing the journey of culture

transformation Culture

Further investing in robust controls and

resilience Control

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27 April 2015


We have taken six key decisions

Reposition CB&S

Reshape retail

Rationalize our footprint

Transform our operating model

Digitalize DB

Grow GTB and Deutsche AWM

1

2

5

6

3

4

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27 April 2015


Reposition CB&S: Delivering a sustainable, resilient and well-controlled investment bank

2012-

2014

Aspiration

2020

CRD4

usage

H / M / L= high / medium / low

CRD4 leverage consumption

Top 3 global Debt S&T business

Top 5 global Corporate Finance house

Top 5 Equities S&T franchise

Invest

Top 5 global commodities business

Leading provider uncleared CDS

Leading global repo franchise

Long dated uncleared derivatives

Adjust

perimeter

Optimize country presence

Emphasize client solutions versus flow

Multi- vs. single-product relationships

Refocus

H

L

M

M

H

H

H

M

M

M

Emphasis

De-emphasis

1

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27 April 2015


Single name

CDS(2)

FX Credit Solutions

Reposition CB&S: Trimming while investing

2014 Aspiration 2020

Exit (2013-2014)

Optimize

Grow

Maintain

Optimizing our client franchise

Low High RoA(4)

Rates and

GLM(1) EM Debt

Flow Credit

Equity

Derivatives CB

&S

reve

nu

e r

an

k(3

)

#1-2

#3-5

#6-9

Invest in

Corporate

Finance

and

Cash

Equities

Prime Finance

Reduce

Commodities

Single Name CDS(2)

Rates and GLM

Prime Finance

Flow Credit

Corporate Finance

Cash Equities

Equity Derivatives

EM Debt

FX

Credit Solutions

Repo

Long-dated uncl. derivatives

Commodities(5)

Size of bubble relates to CRD4

leverage exposure

1

Note: Rates & GLM includes RMBS, Credit Solutions includes Distressed Product Group (1) Reduction mainly in long-dated uncleared derivatives and repo (2) Excluding single name CDS in Asia,

CEEMEA and LatAm (3) Based on Coalition index (DB internal structure) (4) Revenue return on CRD4 exposure (5) as at FY2013

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27 April 2015


(30-40)

Reduced

client

perimeter

(40-50)

Reduced

product

perimeter

(50-60)

Disposal of

low-yielding

assets

(80-90)

1Q

2015

>900

Redeploy

ment and

growth(1)

FY18

target

gross

Derivati

ves roll-

off

FY18

target

net

Reposition CB&S: Shrinking and re-deploying balance sheet CRD4 leverage exposure, in EUR bn

Expected impact of

exposure reduction

~EUR 0.8bn

deleveraging exit costs

~EUR 0.6bn negative

run-rate revenue

impact…

…more than offset by:

‒ Revenues from re-

deployment; and

‒ Market growth

(1) FX outlook assumed constant vs. April 2015

50-70

~700

1

Targeted leverage exposure

reduction: gross ~EUR 200bn;

net ~EUR 130-150bn

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27 April 2015


Postbank today(1) Substantial investments Postbank in 2010

Reshape retail: Substantial investments in Postbank since 2010

2

Disposed / wound down

non-core assets

EUR 42.3bn:

‒ EUR 3.7bn structured

credit portfolio

‒ EUR 13.1bn commercial

real estate portfolio

‒ EUR 25.5bn

deleveraging financial

markets business

Invested in platform and

efficiency EUR 1.2bn:

‒ Service quality, sales

and process efficiency:

~EUR 0.5bn

‒ IT platform upgrades:

~EUR 0.7bn

Balance sheet (total assets,

in EUR bn)

Non-customer

assets (in EUR bn)

Shareholder

equity (average, in EUR bn)

Return on assets (IBIT / total assets,

in bps

(1) FY2014 Source: Postbank Annual Report 2010 / 2014

Leverage ratio (in %)

215

103

5.6

15

2.5

155

57

6.6

29

3.1

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27 April 2015


Reshape retail: A number of factors has led us to reconsider Postbank’s strategic fit with DB

2

Key factors Implications

Funding

Postbank’s contribution to group-wide

funding and liquidity limited by regulatory

constraints

Group-wide limits constrain

Postbank’s ability to efficiently deploy

its funding overhang

Leverage

Postbank’s mortgage and home loans

products drive high returns at high balance

sheet usage

Resulting 3.1% leverage ratio especially

onerous given DB’s G-SIB status

DB's proactive focus on ≥5%

medium-term leverage ratio would

negatively impact Postbank’s product

portfolio and growth prospects

Cross-sell

Cross-selling between DB and Postbank :

‒ Made more costly and onerous by

evolving regulation

‒ Limited by differing client needs

Substantially less scope for revenue

synergies between Postbank and DB

DB’s ability to fully realize value of Postbank’s acquisition eroded

in the face of changed regulatory environment and our strategy

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27 April 2015


Reshape retail: Postbank deconsolidation process and timeline

2

Imme-

diately

2Q-4Q

2015

By end

2016

Cease integration efforts especially in IT

and middle/back-office operations

Revert to stand-alone business and

operating models

Yet maintain the efficiency and service

quality improvements

Launch re-IPO

Next steps

To prepare the execution of our strategy,

we acquired additional 2.7% of Postbank

shares

Our ownership moved from 94.1% to

96.8%

Intention to launch squeeze-out at a

Postbank shareholders’ meeting by

August 2015

Completion of squeeze-out expected at

the latest by year-end 2015

Squeeze-out provides us with flexibility

with regard to domination agreement

Pursue squeeze-out of Postbank minorities

at Postbank shareholders’ meeting

Prepare subsequent re-IPO process

Intention to launch squeeze-out

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27 April 2015


Reshape retail: Transform our private and commercial client franchise

Relationship banking for advisory-

focused private, business and MidCap

clients in Germany and Europe

Advisory-

led client

franchise

Industry-leading digital channels and

more efficient physical network

Omni-

channel

distribution

Focus on investment, mortgage and

business / MidCap solutions

Superior

product

offering

Lean IT / operations platform through

standardization and reduced

complexity

State-of-

the-art

platform

“Leading digitally-enabled advisory

bank for private and commercial clients

with strong home base in Europe”

2

Client

Intelligence

Platform

Personal

advice

Digital

transformation

Processes

Digital

access

Private and

Commercial

Clients

Our value proposition: “Best-in-class,

seamlessly accessible, investment-centric

financial solutions for demanding clients”

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27 April 2015


Leading digitally-enabled advisory bank for >13m

clients with strong home base in Europe

‒ No. 1 advisory bank in Germany(1) for >8m

private, business and MidCap clients

‒ Strongholds in five other attractive European

markets with in total ~5m clients

Uplift of asset productivity through emphasis on

investment and insurance products

Fully digitized omni-channel distribution model

with ~500 specialized advisory centers in

Germany and premium service

Competitive cost efficiency

Reshape retail: A leading advisory bank

2016-2020

Substantial actions planned… …to deliver our new PBC

Sharpen distribution model

‒ Up to 200 branches closed by 2017

‒ Strengthen omni-channel

capabilities

Continue to invest in efficiency and

service quality

Invest in digital capabilities

‒ ~EUR 100m invested so far

‒ Targeting EUR 400-500m further

investments by 2020

Optimize infrastructure and front-to-

back cost reduction

2

(1) Based on revenues Source: Company data

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27 April 2015


Autobahn App Market

FinanzPlaner 2.0

maxblue 2.0

DB Innovation Labs

Nucleus

Banking via Apple Watch

Fingerprint login

Digitalize DB: Becoming a more Digital Bank 3

Banking on the verge of major digital disruption

New trends

Early

adopters

Main-

stream

clients

Laggards

Tipping point

Consumer

Digital Media

(1) Of which EUR 400-500m relate to retail ; see page 25 Source: McKinsey

Banking

industry

Investing in disruptive technologies in financial services – e.g.

Targeting up to EUR 1bn of incremental

group-wide investment through 2020(1)

Capture

New

Revenues

Enable

Our

Platform

Target

New

Clients

New banking propositions to:

‒ Offer new products; e.g. in payments,

messaging, client data

‒ Reach new client segments

‒ Expand to new geographies

Deliver

Customer

Experience

Traditional

Media

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27 April 2015


Grow GTB: Continue to invest in scale 4

Trajectory to build on

GTB performance(1)

In EUR bn

2014 2010

4.1

3.4

0.9 1.2

+23%

+36%

112100

2014 2010

Global peer revenues(2)

Indexed

(1) 2014 does not reflect C&A clear-out adjustments as per 1Q2015 disclosure (2) Peer set consisting of BoA, JPM, Citi, BNY, HSBC, State Street and Standard Chartered

IBIT

Revenues

+12%

Market leader in

‘annuity- like’

business to corporate

and institutional clients

Corporate ‘deposit

engine’ and net

liquidity provider

High Return-on-

Equity business

World-class cost

efficiency

Why we want to grow GTB Planned investments

■ EUR 50bn+ incremental leverage

exposure supporting corporates

and financial institutions

■ EUR >1bn investment in our core

product engines

Ger-

many Europe

US Asia

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27 April 2015


...with strong delivery momentum

Net New Assets

IBIT(3)

In EUR bn

In EUR bn

~7x

1Q15

0.3

2014

1.0

2012

0.2

1Q15

17

2014

40

2012

(25)

Focused transformation...

Select examples

Integration Created global AM client coverage

Integrated investment platforms

Simplification Reduced 11 booking centers(1)

Rationalized legal entities

~15% headcount reduction(2)

Transformation Decommissioned 126 IT applications

Invested in platform efficiency

Rationalization Divested EUR 30bn non-core AuM

De-listed and closed small funds

Growth Track record of consistent inflows

Launched innovative products

Expanded U/HNWI coverage

4 Grow Deutsche AWM: Building on a strong trajectory

0.9

AuM, in EUR trn

1.0 1.2

4.1

Revenues(4)

4.4 1.2

(1)Including AM manufacturing centers (2) Net, full-time equivalents 1Q2015 vs. 2Q2012 (3) 2014 does not reflect C&A clear-out adjustments as per 1Q2015 disclosure

(4) Excluding Abbey Life gross-up

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27 April 2015


Wealth

Management

Asset

Management

Significant global growth opportunities for

the industry Planned investments to capture growth

4 Grow Deutsche AWM: Invest to capture future growth

2020E

220

2013

152

2020E

102

2013

69

Sources: Credit Suisse Global Wealth Report 2014; PwC Asset Management 2020: A brave new world 2014; BCG Global WM Industry Survey 2014

AuM, in USD trn

AuM, in USD trn

Ageing

population

Emerging

market growth

Alternatives

and Passive

Custom

solutions

U/HNWI growth

Balance Sheet:

Prudently grow lending balance sheet

5-10% p.a. to support client needs

Client coverage:

Increase U/HNWI relationship managers in

key markets by 15% in the next two years

Increase product specialists

Operating model:

Continue to streamline footprint to further

improve CIR

Invest in technology and digital

capabilities to better serve clients

Investment performance and solutions:

Develop innovative Retirement and

Strategic Beta offerings

Further enhance Alternatives and Multi-

Asset investment capabilities

5-6% p.a.

5-6% p.a.

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27 April 2015


Rationalize our footprint: Centers of economic power are shifting

5

(1) Companies with >USD 1bn in annual revenues (2) Individual with net worth of >USD 30m Source: McKinsey, Knight Frank, PWC

# of large caps in EM(1)

>3x

>2020 2010

>2x

>2020 2012

2007

>2x

>2020

GDP in largest 600 cities

2013 >2020

+30%

# of UHNWI(2) in top 25 cities AuM in EM

Towards emerging markets Towards mega-cities

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27 April 2015


CAGR 2014-

2019, in %

Growth 2011-

2014, in %

CAGR 2014-

2020, in %

DB

revenues

~57

Rationalize our footprint: Exit or reduce our presence while investing in high growth hubs

5

Today(1)

70

55

15

Aspiration

60-63

(7)-(10)

Key drivers of our footprint

optimization decisions De-emphasize

# of countries/presences Reducing complexity

Market size and growth

Importance for

international large caps /

MNCs

Regulatory and political

environment / outlook

DB market position /

ability to compete

Size of current local

presence

Cost of operations

increasing

-

(1) One country exited compared to YE 2014 (2) Including remote presences Source: McKinsey, DB Research

Repre-

sentative

offices

Operating

locations

Emphasize – examples +

India

China

Real

GDP

~7

Wholesale

revenue pool

~13

CAGR 2014-

2019, in %

Growth 2011-

2014, in %

CAGR 2014-

2020, in %

DB

revenues

~10

Real

GDP

~8

~14

Wholesale

revenue pool

(2)

32


27 April 2015


Transform our operating model: Redesigning operating and governance models

6

Strategy 2015+

Strategy 2020

Today

Jun 2012

Comprehensive assessment of status quo

Operational Excellence launched

Initiatives to strengthen compliance,

remediate regulatory issues and improve

platform stability

Significant investments, hiring key people,

establishing organizational procedures

Raise level of efficiency: redesign front-to-back

processes and operations

Reduce complexity: right-size in line with

reduction of business perimeter

Improve controls: continue to invest and modify

governance and organizational model

Enhance resolvability: simplify legal entity

set-up

Details of operating model and governance enhancement initiatives

to be announced in up to 90 days

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27 April 2015


Note: Gross cost savings are countered by increasing cost from inflation, FX changes, cost of growth, cost of regulatory compliance and other cost increases

(1) Reflects overall FY2015 OpEx savings already included in separately disclosed OpEx numbers; no adjustments from incremental savings (2) Already included in separately

disclosed OpEx numbers

Transform our operating model: Top-down savings targets In EUR bn

6

Gross cost

savings p.a. Cum. CtA

Remaining

2015 OpEx

savings (Examples)

Modernize DB's non-retail IT infrastructure/ application

footprint jointly with a strategic partner

Complete roll-out of our strategic global investment

management platform for Deutsche AWM

1.2(1) 1.0(2)

Disposals

Deconsolidate Postbank

Completed NCOU exits

Other portfolio measures

3.3 0.3

Additional

gross savings

Narrow perimeter (e.g., de-emphasizing of

product/client segments, locations)

Increase efficiency (e.g., process streamlining, IT/Ops

platform optimization)

~3.5 ~3.7

Details on next page

Target

Additional cost

reductions p.a. Cum. CtA

34


27 April 2015


Gross cost

savings p.a.

Unlock additional efficiency potential through

– Automation of manual processes

– IT/Ops footprint optimization and insourcing

– Further non-compensation costs (e.g., procurement)

optimization

– Infrastructure functions re-alignment

Increase

efficiency

Total savings

Narrow

perimeter

Rightsizing of FTE and platform in alignment with:

– Exit of structurally unprofitable businesses

– Country exits / non-presence

– Branch closures

~1.3

~2.2

~3.5

~1.4

~2.3

~3.7

Cum. CtA Structural efficiency levers

Transform our operating model: Contributing ~EUR 3.5bn additional organic gross savings In EUR bn

6

Targeting ~15% reduction of adjusted costs by 2020

Target

Note: Gross cost savings are countered by increasing cost from inflation, FX changes, cost of growth, cost of regulatory compliance and other cost increase

35


27 April 2015


Summary: Six decisions to reshape the Bank

Deliver sustainable client-driven franchise by:

‒ Reducing transactional business and focus product suite

‒ Invest in client solutions, advisory and equities

Re-focus through deconsolidation of Postbank

Transform DB into a leading digitally-enabled advisory bank for

private and commercial clients

Invest with focus on a) customer experience, b) revenue

opportunities, c) enable our platform, and d) new clients

Invest in scaling-up GTB

Aggressively invest in future growth of Deutsche AWM

Rationalize our geographic footprint

Invest in high growth hubs (e.g., China, India)

Redesign our operating and governance model to achieve

higher efficiency, reduced complexity, even stronger controls

and easier resolvability

Leverage reduction:

gross ~EUR 200bn,

net ~EUR 130-150bn

Net leverage reduction of

~EUR 140bn

Closure of up to 200

branches

Group-wide net

investment of up to

EUR 1bn by 2020

Increase in leverage

exposure by 30-40%

P&L investment of

>EUR 1.5bn

Exit / reduction of

presence in 7-10

countries

Changes to governance

and structure

Additional ~EUR 3.5bn

gross savings

Aspirations


Reposition

CB&S

Reshape

retail

Rationalize

our footprint

Transform

our operating

model

Digitalize

DB

Grow

GTB and

Deutsche AWM

1

2

5

6

3

4

36


27 April 2015


Agenda

1 Taking stock

2 Strategy 2020

3 Delivering value

37


27 April 2015

Deutsche Bank

Result: A reshaped business model Targeted indicative resource utilization (CRD4 exposure) by 2020

Clients

2014

2020

Mass

retail(1)

Afflu-

ent /

HNWI

Corp-

orates

Institutions / other

Products

2014

2020

Lending(1)

Advi-

sory

Cash

mgmt

Asset

mgmt Sales & trading

Regions

2014

2020

Germany(1) Europe (ex. GY) Americas Asia

Re-affirming our

commitment to

clients: at the center

of what we do

Serving client

segments which

offer mutually

beneficial

partnerships in

services in which we

excel

Adapting our product

and resource

deployment

accordingly

(1) 2014 including all of Postbank; 2020 excluding Postbank

Change 2020 vs. 2014

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27 April 2015


Germany: Remaining among the market leaders across all our businesses

Peer ~90

Peer ~100

Peer ~110

Peer ~120

Peer ~150

Peer ~150

370

Peer ~25

Peer ~39

Peer ~111

Peer ~112

Peer ~113

211

Peer ~24 Peer ~35

Peer ~40

Peer ~40

Peer ~50

Peer ~50

Peer ~55

125

2

Peer 3

4

Peer 21

Peer 29

4

Peer 2

Peer

Investment Banking – Corporate Finance Retail Banking

Asset Management(1) Wealth Management

Fees, FY14, in EUR m

Assets under Management, FY14, in EUR bn Assets under Management, FY14, in EUR bn

Net revenues, FY13/FY14, in EUR bn 2020

2020 2020

2020

(2)

(1) Public funds including exchange traded products (2) Including Advisory Banking for wealthy private clients in PBC

Source: Company data, Dealogic, BVI

Public

sector

banks

Private

sector

banks

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27 April 2015


Payout ratio(2) Aspiration to deliver 50%+ dividend payout ratio


(1) RoTE: Post-tax Return on Tangible Equity is calculated as net income (loss) attributable to shareholders as a percentage of average tangible shareholders' equity. Net income (loss) attributable

to shareholders is defined as Net income (loss) excluding post-tax income (loss) attributable to non-controlling interests. Tangible shareholders' equity is the shareholders’ equity per balance sheet

excluding goodwill and other intangible assets (2) Through dividends and/or share buybacks

Medium term ambitions

Our targets

Our aspiration

Leverage

ratio ≥5%

CET1

ratio ~11%

RoTE(1) >10%

Organic gross

savings ~EUR 3.5bn

CIR ~65%

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27 April 2015


What comes next

Today

Operating

model review

Refine key levers

Design detailed transformation roadmap

Refine governance and operating model

Footprint

decisions

Finalize outcomes of global country review

Engage stakeholders and initiate implementation

Divisional and

functional strategies

Breakdown strategic roadmap into detailed

divisional and functional plans

Sequence change management

Strategy 2020 announcement

Follow-up announcement In up to 90 days

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27 April 2015


Strategy 2020: Focusing Deutsche Bank to deliver value

Client-centricity: placing our clients

at the centre of what we do

Keeping a global footprint

Maintaining a universal banking

product offering

Refocusing on clients who offer

mutually beneficial partnerships

Moving toward a more focused

geographic reach

Tightening our product perimeter –

not all things to all people

What’s constant What changes

A leading global bank based in Germany

Proactive stance on future regulatory direction and robust controls

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27 April 2015


This presentation contains forward-looking statements. Forward-looking statements are statements that are not

historical facts; they include statements about our beliefs and expectations and the assumptions underlying them.

These statements are based on plans, estimates and projections as they are currently available to the

management of Deutsche Bank. Forward-looking statements therefore speak only as of the date they are made,

and we undertake no obligation to update publicly any of them in light of new information or future events.

By their very nature, forward-looking statements involve risks and uncertainties. A number of important factors

could therefore cause actual results to differ materially from those contained in any forward-looking statement.

Such factors include the conditions in the financial markets in Germany, in Europe, in the United States and

elsewhere from which we derive a substantial portion of our revenues and in which we hold a substantial portion of

our assets, the development of asset prices and market volatility, potential defaults of borrowers or trading

counterparties, the implementation of our strategic initiatives, the reliability of our risk management policies,

procedures and methods, and other risks referenced in our filings with the U.S. Securities and Exchange

Commission. Such factors are described in detail in our SEC Form

20-F of 20 March 2015 under the heading “Risk Factors.” Copies of this document are readily available upon

request or can be downloaded from www.db.com/ir.

This presentation may contain non-IFRS financial measures. For a reconciliation to directly comparable figures

reported under IFRS, to the extent such reconciliation is not provided in this presentation, refer to the 1Q2015

Financial Data Supplement, which is accompanying this presentation and available at www.db.com/ir.

Cautionary statements

Documents

Strategy 2020: Delivering Value - Deutsche Bank · 1 Jürgen Fitschen and Anshu Jain 27 April 2015 Deutsche Bank Strategy 2020: Focusing Deutsche Bank to deliver value Client-centricity: