EX-99.2 3 d666020dex992.htm EX-99.2 EX-99.2
Deutsche Bank
Strategy 2015+: A mid-point update
Annual Press Conference
Frankfurt, 29 January 2014
Jürgen Fitschen and Anshu Jain
Co-Chief Executive Officers
Exhibit 99.2

Jürgen Fitschen and Anshu Jain
29 January 2014
Deutsche Bank
1
Agenda
1
Strategy 2015+: Rationale
2
Delivery in 2013
3
The journey so far
4
The journey ahead
5
Questions & Answers

Jürgen Fitschen and Anshu Jain
29 January 2014
Deutsche Bank
2
June 2012:
A real need for fundamental change
Historically unique environment
for banking sector
Significant reform backlog within the Bank
Macroeconomic
challenges and
Euro crisis
Megatrend
opportunities
Unprecedented
regulatory
tightening
Strengths
Undisputed leader in Europe’s 
strongest economy
Strong global network
Leadership in key businesses
Some underperforming
businesses
Antiquated infrastructure
Cost efficiency deficit: CIR of 78%
(1)
Capital deficiency: CET1 ratio
<6%
(2)
Outsized balance sheet: EUR 1.8
trillion leverage exposure
(3)
‘Silo’
mindset / lack of team culture
Considerable legacy issues
Weak-
nesses
(1) Cost-income-ratio (CIR); full year 2011      (2) Pro-forma; Common Equity Tier-1 (CET1) ratio; fully loaded, according to Capital Requirements Directive 4 (CRD4); December 2011      (3) CRD4 leverage
exposure; June 2012

Jürgen Fitschen and Anshu Jain
29 January 2014
Deutsche Bank
3
Our answer:
Strategy 2015+
Our vision: “We aspire to be the leading client-centric global universal bank”
(1) Cumulative Cost-to-Achieve (CtA) 2012-2015 related to Operational Excellence (OpEx) program
Initiated
a
historic
EUR
4
bn
(1)
reconfiguration
of
costs,
infrastructure, systems and processes
Building a best-in-class
infrastructure
Unified
leadership,
introducing
a
team-based
style
and
re-allocating divisional and regional responsibilities
Creating a unified structure
and team mindset
Launched
historic
balance
sheet
and
leverage
reduction
through
asset
sales,
write-downs
and
capital
accretion
Initiating true balance sheet
transformation
Initiated
head-on
cultural
change,
while working through legacy issues step-by-step
Becoming the sector leader
in cultural change
Optimizing
performance
of
core
businesses
based
on
the best people and processes
Galvanizing our core
businesses

Jürgen Fitschen and Anshu Jain
29 January 2014
Deutsche Bank
4
Concrete 2015 financial targets
Aspiration 2015+
Growth in line with market
Group revenues
(1)
EUR 4.5 bn savings
(2)
EUR 4.0 bn investments
(3)
Costs (OpEx)
<65%
Cost-income-ratio
>12% Group
>15% Core Bank
Post-tax RoE
(4)
>10%
CET1 ratio
(5)
(1)
Based
on
full
year
2012
expected
revenues
at
Group
level,
with
differences
between
divisions
(2)
Net
savings
related
to
OpEx,
excluding
impact
of
litigation
and
CtA
(3)
CtA
include
severances
unrelated
to
new
cost
program
(4)
Post-tax
Return
on
Equity
(RoE)
based
on
average
active
equity
and
assuming
Group
tax
rate
between
30%
and
35%;
Core
Bank
includes
CB&S,
PBC,
GTB,
DeAWM
and
C&A
(5)
CRD4,
fully
loaded
(6)
CRD4
exposure
reduction
from
June
2012
to
December
2015;
this
aspiration
is
based
on
actual
reduction
from
June
2012
to
December
2013
plus
outstanding
portion
of
announced
additional
reduction
of
EUR
~250
bn
from
June
2013
to
December
2015
(based
on
current
FX
rates)
EUR ~500 bn
Leverage exposure reduction
(6)

Jürgen Fitschen and Anshu Jain
29 January 2014
Deutsche Bank
5
Agenda
1
Strategy 2015+: Rationale
2
Delivery in 2013
3
The journey so far
4
The journey ahead
5
Questions & Answers

Jürgen Fitschen and Anshu Jain
29 January 2014
Deutsche Bank
2013 results at a glance
Full year, in EUR bn, unless otherwise stated
6
1) Core Bank includes CB&S, PBC, GTB, DeAWM and C&A      (2) Adjusted for litigation, CtA, impairment of goodwill and intangibles, policyholder benefits and claims, other
severances and other relevant items      (3) As of period end  
(4) Adjusted for netting of derivatives and certain other components      (5) CRD4, fully loaded      (6) CRD4,
adjusted, fully loaded; comprises pro-forma fully loaded CET 1, plus all current eligible AT1 outstanding (under phase-in). Assumes that new eligible AT1 will be issued as this
phases out

Jürgen Fitschen and Anshu Jain
29 January 2014
Deutsche Bank
As expected, another year of significant specific costs
Full year 2013, in EUR bn
7
(1) NCOU reported IBIT, incl. EUR 1.3 bn NCOU-related litigation         (2) Core Bank-related litigation; impairment of goodwill & intangibles       
(3) CtA and other severances      
(4) Credit / Debt / Funding Valuation Adjustments (CVA/ DVA/ FVA)         Note: Core Bank includes CB&S, PBC, GTB, DeAWM and C&A; numbers may not add up due to rounding
EUR 6.3 bn
Core Bank
reported IBIT
Required
accounting
adjustments
(4)
Investing in
our platform
(3)
Core Bank
adjusted IBIT
Group
reported IBIT
Legacy
issues:
litigation,
impairments
(2)
NCOU incl.
expected
BHF sale
(1)

Jürgen Fitschen and Anshu Jain
29 January 2014
Deutsche Bank
8.4
7.6
8.3
8.3
5.2
(5.6)
7.8
8.4
6.5
4.8
2012
2011
2010
2009
2008
2007
2006
2005
2004
2013
8
However, core operating performance was close to our
best ever…
Full year adjusted IBIT
(1)
, Core Bank
(2)
, in EUR bn
(1) Adjusted for litigation, CtA / restructuring charges, other severances, impairment of goodwill & intangibles, and CVA / DVA / FVA      (2) Group excluding NCOU in 2012 / 2013
and Corporate Investments in years prior to 2012      Note: Adjusted figures shown based on US GAAP for 2004 to 2006 and IFRS for 2007 to 2013
Growth & Expansion
Crisis
Recalibration
Strategy
2015+

Jürgen Fitschen and Anshu Jain
29 January 2014
Deutsche Bank
RWA
(2)
, 2010 indexed to 100
Adjusted cost base
(4)
(8)%
23.2
25.1
9
…and was achieved with a leaner platform…
Period end, in EUR bn, unless otherwise stated
(1) Adjusted for netting of derivatives and certain other components
(2) Pro-forma Basel 2 to allow for comparability
(3) 1H 2012 annualized
(4)
Full year 2012 reported
non-interest expense of EUR 31.2 bn (delta of EUR 6.1 bn to 1H 2012 annualized adjusted cost base); full year 2013 reported non-interest expense of EUR 27.8 bn (delta of EUR
4.6 bn to full year 2013 adjusted cost base)
(29)%
Current
(2013)
1,080
Peak
(2006)
1,521
(27)%
73
Peak
(2010)
100
Total assets (adjusted)
(1)
Equivalent to
EUR 7 bn
capital raise
Current
(2013)
Peak
(1H2012
(3)
)
Current
(2013)

Jürgen Fitschen and Anshu Jain
29 January 2014
Deutsche Bank
10
…while becoming a safer bank…
Period end, in EUR bn, unless otherwise stated
(1) Stress loss capturing traded market risk losses; stress scenarios derived using market observed liquidity horizons and the assumption of management action for liquid risks      (2) CRD4, phase-in (3) Including
Secured Funding & Shorts, Discretionary Wholesale, Financing Vehicles and Other Customers      (4) Including capital markets and
equity, retail, and transaction banking
Stress scenario loss
(1)
CET1 capital
(2)
as a multiple
of stress scenario loss
Total funding

Jürgen Fitschen and Anshu Jain
29 January 2014
Deutsche Bank
2013
8.4
51%
23%
14%
13%
CB&S
PBC
GTB
DeAWM
2004
4.8
63%
20%
6%
11%
Improved business mix
Good regional balance
…and a better balanced universal bank
Full year, in EUR bn, unless otherwise stated
11
(1) Adjusted for litigation, CtA / restructuring charges, other severances, impairment of goodwill & intangibles, CVA / DVA / FVA; Core Bank IBIT excludes NCOU in 2013 and
Corporate Invest-ments in 2004; Core Bank adjusted IBIT 2004 based on US GAAP; divisional adjusted IBIT contribution percentages excludes C&A
Note: Numbers may not
add up due to rounding
Germany
EMEA ex Germany
Americas
APAC
2013
31.9
33%
35%
23%
9%
Core Bank adjusted IBIT
(1)
Group net revenues
49%
37%

Jürgen Fitschen and Anshu Jain
29 January 2014
Deutsche Bank
12
Agenda
1
Strategy 2015+: Rationale
2
Delivery in 2013
3
The journey so far
4
The journey ahead
5
Questions & Answers

Jürgen Fitschen and Anshu Jain
29 January 2014
Deutsche Bank
Strategy 2015+: Taking stock
13
Note:
Core
Bank
includes
CB&S,
PBC,
GTB,
DeAWM
and
C&A
(1)
Assuming
tax
rate
between
30%
and
35%
and
based
on
average
active
equity
(2)
Adjusted
for
litigation,
CtA,
other
severances,
impairment
of
goodwill
&
intangibles,
and
CVA
/
DVA
/
FVA
(3)
Net
savings
related
to
OpEx
program,
excluding
impact
of
litigation
and
CtA;
CtA
include
severances
unrelated
to
OpEx
(4)
Cumulative
savings
related
to
OpEx
program;
Jun
2012
to
Dec
2013
(5)
CRD4,
fully
loaded
(6)
Reduction
in
CRD4
RWA
equivalent,
fully
adjusted
(7)
CRD4
exposure
reduction
from
June
2012
to
December
2015;
this
aspiration
is
based
on
actual
reduction
from
June
2012
to
December
2013
plus
outstanding
portion
of
announced
additional
reduction
of
EUR
~250
bn
from
June
2013
to
December
2015
(based
on
current
FX
rates)
Competencies
Capital
Culture
Strategic
lever
Delivered by end of 2013
Aspirations 2015+
Status
Core Bank post-tax RoE
(1)
>15%
CET1 ratio
(5)
>10%
Accelerated NCOU de-risking
(6)
EUR ~500 bn exposure
(7)
reduction
Decisive cultural change
Major legacy issues settled
Core Bank adj. IBIT
(2)
EUR 8.4 bn,
equivalent to pro-forma post-tax
RoE
(1)
>11%
9.7% –
Target within reach
EUR 20 bn ahead of plan
(6)
EUR ~340 bn already achieved
Foundations of cultural change
firmly established
2 major issues settled
Clients
More client-centric organization
Structural reconfiguration complete
Costs
Cost savings
(3)
of EUR 4.5 bn
EUR 2.1 bn achieved
(4)
–
EUR 500 m ahead of plan

Jürgen Fitschen and Anshu Jain
29 January 2014
Deutsche Bank
CB&S:
Strength despite significant reconfiguration
Full year, in EUR bn, unless otherwise stated
14
8.9
2013
2012
10.1
(1)
Adjusted
for
litigation,
CtA,
other
severances,
impairment
of
goodwill
&
intangibles,
CVA
/
DVA
/
FVA;
full
year
2012
/
2013
reported
IBIT
of
EUR
2.9bn
/
EUR
3.1
bn
respectively
(2)
Full
year
2012
/
2013
reported
noninterest
expenses
of
EUR
12.5bn
/
EUR
10.4
bn
respectively
(3)
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
78
markets
analyzed
Source:
Greenwich
Associates,
Euromoney,
Coalition,
Dealogic,
Deutsche
Bank
4.7
4.9
2013
2012
Adjusted cost base
(2)
Adjusted IBIT
(1)
Further recalibrate
business mix
Absorb deleveraging
Defend Top-3 market share
in 35 markets
(3)

Jürgen Fitschen and Anshu Jain
29 January 2014
Deutsche Bank
PBC:
Building an integrated platform
Full year, in EUR bn
15
(1)
Adjusted
for
litigation,
CtA,
other
severances,
impairment
of
goodwill
&
intangibles,
CVA
/
DVA
/
FVA;
full
year
2012
/
2013
reported
IBIT
of
EUR
1.5bn
/
EUR
1.6
bn
respectively
2013
2.1
2012
2.0
Adjusted IBIT
(1)
Navigate tough
revenue environment
Sustain progress in
integration projects
Further increase
profitability
Sound profitability
Substantial progress
in key projects
Current priorities
MidCap
coverage

Jürgen Fitschen and Anshu Jain
29 January 2014
Deutsche Bank
+8%
+6%
GTB:
Record operating profit despite headwinds
Full year, in EUR bn, unless otherwise stated
16
(1)
Adjusted
for
litigation,
CtA,
other
severances,
impairment
of
goodwill
&
intangibles,
CVA
/
DVA
/
FVA;
full
year
2012
/
2013
reported
IBIT
of
EUR
0.7
bn
/
EUR
1.1
bn
respectively
2013
1.3
2012
1.1
Revenue growth,
2013 vs. 2012
Drive revenue growth despite
challenging environment
Increase scale via
new client acquisition
Maintain resource efficiency
and risk discipline
Adjusted IBIT
(1)
Americas
APAC

Jürgen Fitschen and Anshu Jain
29 January 2014
Deutsche Bank
DeAWM:
Record operating profit amid business integration
Full year, in EUR bn
17
(1)
Adjusted
for
litigation,
CtA,
other
severances,
impairment
of
goodwill
&
intangibles,
CVA
/
DVA
/
FVA;
full
year
2012
/
2013
reported
IBIT
of
EUR
0.2bn
/
EUR
0.8
bn
respectively;
comparability limited due to
change in composition of the business      (2) Comparability limited due to change in composition of the business
2013
1.2
2012
0.6
3.1
3.3
2013
2012
Adjusted cost base
(2)
Further enhance client
offering
Finalize operational
transformation
Deliver margin
improvement
Adjusted IBIT
(1)
Record profitability
Successful integration
Current priorities

Jürgen Fitschen and Anshu Jain
29 January 2014
Deutsche Bank
Cost:
Delivery substantially ahead of plan
Selected examples
18
2.1
1.6
Achieved
Target
EUR ~600 m
to make our
organization more effective
EUR ~1.4 bn
to integrate
our business platforms
>1,200
applications
eliminated
EUR ~700 m
to
consolidate and
standardize our systems
>18,000
vendor
relationships terminated
EUR ~200 m
to automate
and simplify processes
>60,000sqm
of excess
office space disposed
>80
legal entities reduced
Savings
OpEx program:
EUR ~500m ahead of target
Investments
Cumulative savings,
Jun 2012 to Dec 2013
Reaping the
benefits of improving
our platform
Building a best-in-
class infrastructure
Period end, in EUR bn

Jürgen Fitschen and Anshu Jain
29 January 2014
Deutsche Bank
19
Capital:
Considerable progress achieved
In EUR bn, unless otherwise stated
(1) CRD4, fully loaded      (2) CRD4       (3) CRD4; pro-forma RWA equivalent (RWA plus equivalent of items currently deducted 50/50 from Tier 1/Tier 2 capital
whereby the Tier 1 deduction amount is scaled at 10%)      (4) CRD4, adjusted fully loaded
Leverage ratio
(4)

Jürgen Fitschen and Anshu Jain
29 January 2014
Deutsche Bank
Clients:
Physically closer to our clients…
20
Embedding client-centricity
in our organization…
…and delivering global
capabilities locally…
…is bearing fruit
Client-centric GEC
incentives
Better cross-divisional
co-operation
Better product-regional
co-operation
More regional focus
Intensify local coverage
Faster access to global
network and services
Deliver global products
efficiently
USD >1.8 bn
IPO
Landmark USD
~17 bn
corporate debt
offering
Serving
~900,000
“Mittelstand”
clients across 
>70 countries

Jürgen Fitschen and Anshu Jain
29 January 2014
Deutsche Bank
Clients:
…and digitally closer to clients
21
Note: Selected Deutsche Bank examples based on PBC Germany statistics, FY 2013          Source: Deutsche Bank

Jürgen Fitschen and Anshu Jain
29 January 2014
Deutsche Bank
Culture:
A year of fundamental progress
22
Turn values & beliefs
into business
performance
2013
Foundations firmly established
Monitor and
measure
behavioral
change
and mindset
shift
Feedback from 52,000 staff collected
Independent Compensation Review Panel
Cascaded values & beliefs –
GEC interacted with
11,000 staff, 50 “Townhall”
events
94% staff awareness after 12 weeks
>300 German MDs attending culture sessions at
IW Academy in Cologne
Launched EUR >1 bn
(1)
investment to establish
more robust controls and comply with regulation
Incorporated consequence management into
compensation processes
Reduced compensation expenses and ratio
(2)
(1) FY 2013 –
FY 2015      (2) Compensation and benefits as % of revenues
Defined new values & beliefs
Extended deferral of compensation vesting for
senior management
Defined responsibility of top 250 leaders
Engage
Measure &
Reinforce
Lead
Listen
Embed
values
&
beliefs
in
core
systems
and
processes
2014/
2015
roadmap

Jürgen Fitschen and Anshu Jain
29 January 2014
Deutsche Bank
Culture:
Changing the way we operate
Selected examples
23
Then
Now
IBOR
submission
Front office
Front office
Monitored by independent “Benchmark
Submission Oversight”
function
Compliance
training
Non-completion: Reminder
sent / supervisor informed
Non-completion: Reminder sent / supervisor
informed / “Red Flag”
Mandatory impact on pay / promotion
decisions
Compliance with (business)
management support
Function specific
Joint responsibility compliance / (business)
management
Multiple “lines of defence”
Compensation
Deferral: 3 years max
Limited clawbacks
Deferral: 5 years for senior management
group
Strengthened clawbacks
Strengthened governance
Performance
review / bonus
setting criteria
Business / financial impact
Franchise contribution
People management &
teamwork
Business, franchise, people = 50%
Adherence to values & beliefs = 50%
A factor in variable compensation
determination
Business
over-
sight
/
monitoring
responsibility

Jürgen Fitschen and Anshu Jain
29 January 2014
Deutsche Bank
Culture:
Dealing decisively with legacy issues
24
(1)
Residential Accredited Loans Inc.

Jürgen Fitschen and Anshu Jain
29 January 2014
Deutsche Bank
25
Agenda
1
Strategy 2015+: Rationale
2
Delivery in 2013
3
The journey so far
4
The journey ahead
5
Questions & Answers

Jürgen Fitschen and Anshu Jain
29 January 2014
Deutsche Bank
Outlook 2014:
Another challenging year
26
Targeted milestones
Surpassing EUR 2.9 bn cumulative
cost savings and investing another
EUR 1.5 bn
Business re-platforming
Infrastructure
Systems and controls
Key challenges
Achieving further progress towards
EUR ~500 bn leverage exposure
reduction
(1)
Progress towards 2015
reduction target
De-risk
balance sheet
Successfully passing AQR
and stress test
Responding
to regulatory
changes
Capital & leverage
AQR & ECB stress test
Single EU regulator
Putting the vast majority of legacy
issues behind us
Management of open items
Litigation
(1) CRD4 exposure reduction from June 2012 to December 2015; this aspiration is based on actual reduction from June 2012 to December 2013 plus outstanding portion of
announced additional reduction of EUR ~250 bn from June 2013 to December 2015 (based on current FX rates)
Platform
reconfiguration

Jürgen Fitschen and Anshu Jain
29 January 2014
Deutsche Bank
27
Outlook 2015:
(1) Net savings related to OpEx, excluding impact of litigation and CtA      (2) CRD4 exposure reduction  from June 2012 to December 2015; this aspiration is based on actual reduction from June 2012 to
December 2013 plus outstanding portion of announced additional reduction of EUR ~250 bn from June 2013 to December 2015 (based on current FX rates)      (3) CRD4, fully loaded     
(4) Pro-forma      (5) Core Bank includes CB&S, PBC, GTB, DeAWM and C&A
(6) Based on domestic statutory tax rate of 30.8% in full year 2011      (7) Assuming Group tax rate between 30% and 35%
and based on average active equity
Positioned to win in a changed environment

Jürgen Fitschen and Anshu Jain
29 January 2014
Deutsche Bank
28
Agenda
1
Strategy 2015+: Rationale
2
Delivery in 2013
3
The journey so far
4
The journey ahead
5
Questions & Answers

Jürgen Fitschen and Anshu Jain
29 January 2014
Deutsche Bank
29
Culture:
Our values and supporting beliefs
Integrity
We live by the
highest standards
of integrity in
everything we say
and do
We will do what is
right –
not just
what is allowed
We communicate
openly; we invite,
provide and
respect
challenging views
Client
Centricity
We earn our
clients’
trust by
placing them at
the core of our
organization
We deliver true
value by
understanding and
serving our clients’
needs best
We strive to
pursue mutually
beneficial client
relationships in
which the value
created is shared
fairly
Innovation
We foster
innovation by
valuing intellectual
curiosity in our
people
We enable our
clients’
success by
constantly seeking
suitable solutions
to their problems
We continuously
improve our
processes and
platforms by
embracing new
and better ways of
doing things
Discipline
We protect the
firm’s resources
by always thinking
and acting like
owners
We live by the
rules and hold
ourselves
accountable to
deliver on our
promises –
no
excuses
We achieve
operational
excellence by
striving to ‘get it
right the first time’
Partnership
We build diverse
teams to generate
better ideas and
reach more
balanced decisions
We put the common
goals of the firm
before ‘silo’
loyalty
by trusting,
respecting and
working with each
other
We act as
responsible
partners with all our
stakeholders and
regulators, and in
serving the wider
interests of society
Sustainable
Performance
We drive value for
shareholders by
putting long-term
success over short-
term gain
We encourage
entrepreneurial spirit
which responsibly
balances risks and
returns
We pursue lasting
performance by
developing,
nurturing and
investing in the best
talent, and by
managing based on
merit

Jürgen Fitschen and Anshu Jain
29 January 2014
Deutsche Bank
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 15
April
2013
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
contains
non-GAAP
financial
measures.
Reconciliations
of
these
measures
to
the
most
directly
comparable
figures
reported
under
IFRS
(or
Basel
2.5
for
regulatory
capital
measures)
are
provided
on
pages
47,
57,
58
and
59
of
the
presentation
of
Anshu
Jain
and
Stefan
Krause
dated
January
20,
2014,
which
is
available from www.db.com/ir.
Cautionary statements
30