Deutsche Bank Dr. Josef Ackermann by vpo20543

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									Deutsche Bank
Dr. Josef Ackermann
Chairman of the Group Executive Committee




Deutsche Bank German Corporate Conference
Frankfurt, 1 June 2005
financial
     transparency.

Agenda


                                  Transformation: much-improved earnings power
   Increased operating strength   Significant reduction in risks …
                                  ... with value for shareholders


                                  World-leading franchises in core businesses:
                                  CIB and PCAM
   A strong growth platform
                                  Above-market growth momentum
                                  Strong diversification


                                  Clear investment criteria
   A clear growth strategy        Organic and external growth
                                  Business realignment accelerates growth



Investor Relations 06/05 · 2
financial
     transparency.

Transformation: substantially improved earnings power

                  Pre-tax return on equity(1)                                        Diluted EPS
    In %                                                                 In EUR
                                                                                                4.53
          1Q                                                                1Q
                                                                   33
          Restructuring activities
          (BRP-related)(2)
                                                                   30
                                                           19                            2.31
                                                                                                       2.09

                         11              10                16
         6                                                                        0.63
                                                                          0.27                  1.67


      2001             2002             2003            2004       1Q     2001    2002   2003   2004    1Q
                                                                  2005                                 2005


(1) Income before income taxes divided by average active equity
(2) FY2004 also includes impact from other efficiency measures
Investor Relations 06/05 · 3
financial
     transparency.

The results of transformation: significant risk reduction ...
In EUR bn
                                   Loans                          Problem loans

                                     (45)%                               (62)%
                       265
                                                              12.7
                                                 145
                                                                                     4.8


               31 Dec 2001                   31 Mar 2005   31 Dec 2001           31 Mar 2005

                               Listed holdings                  Alternative assets
                                    (34)%                                (78)%
                       6.1                                     11.9
                                                 4.0
                                                                                     2.6

               31 Dec 2001                   31 Mar 2005   31 Dec 2001           31 Mar 2005



Investor Relations 06/05 · 4
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… and value for shareholders

           Continuous dividend increase                                       Capital returned to shareholders
   In EUR                                                                  In EUR bn
                                                                    1.70
                                                                                            6.9
                                                           1.50
                                                                           Dividends(1)     2.4
                                1.30 1.30 1.30

              1.12 1.15

    0.92
                                                                           Share
                                    85%                                                     4.5
                                                                           retirements(2)



    1997 1998 1999 2000 2001 2002 2003 2004


(1) For FY2002, FY2003 and FY2004         (2) 1 Jan 2002 – 31 Dec 2004
Source: Company data
Investor Relations 06/05 · 5
financial
     transparency.

Closing the performance gap
                                                                                                                                     x   Delta, in ppt

             Underlying pre-tax RoE, in %                                                                       Underlying CIR, in %

      35                                                              31                     95
                       Peer group*
      30                                                                    4                               85
      25                                             23                                      85
                                                                      27                                              79       80
                                    20
                                                                                                           (12)
      20                                             (7)
                   15                                                                        75
                                    (7)                                                                              (10)     (12)
      15                                                                                                                                    70
                                                     16                                                     73
      10                                                                                                                                         (5)
                  (11)              13                                                       65                       69
                                                                                                                              67
        5                                                                                                                                  65
                                                                                                             Peer group*
                       4
        0                                                                                    55
                 2002             2003             2004          1Q2005                                    2002      2003     2004       1Q2005



* Includes BNP Paribas, Citigroup, Credit Suisse, Goldman Sachs, JPM Chase, Merrill Lynch, Morgan Stanley, and UBS
Note: Numbers may not add up due to rounding
Investor Relations 06/05 · 6
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     transparency.

Share price: outperforming peers in the sector
Share price performance, in EUR(1)
Indexed, 1 Jan 2003 = 100

180
                               International peers(3)                                                       45%
160

140                                                                                                         44%

                                                                                                            35%
120
                                                                                                            19%
100

  80
                                              German
  60
                                              peers(2)
  40
   1 Jan 03                                                        31 Dec 03             31 Dec 04   30 Apr 05

(1) International peers‘ share prices converted into EUR based on daily FX rates
(2) German peers (Allianz / Dresdner Bank, Commerzbank, HypoVereinsbank)
(3) International peers (Citigroup, JPMorgan Chase, Merrill Lynch, UBS, Credit Suisse)
Source: Bloomberg
Investor Relations 06/05 · 7
financial
     transparency.

Agenda



  Increased operating strength

                                 World-leading franchises in core
                                 businesses: CIB and PCAM


  A strong growth platform       Above-market growth momentum



                                 Strong diversification


  A clear growth strategy




Investor Relations 06/05 · 8
financial
     transparency.

CIB: World-leading investment bank in 1Q2005
Underlying revenues 1Q2005, CIB vs. major peers, in EUR bn

                               4.1
                                               3.9              3.7
Loan products                  0.4                                               3.7
Investment                     0.5
banking                                                                                           3.0
                                                                                                                   2.8
                                                                                                                                     2.5    2.5       2.4


Sales &                        3.2
Trading




                              DB             JP    Citigroup Goldman Morgan                                       UBS          Lehman      Merrill   Credit
Change vs. 1Q04                             Morgan            Sachs Stanley                                                    Brothers    Lynch     Suisse
 In EUR                       16%              (6)%              2%               2%               6%             (8)%               16%    (2)%      (4)%
 In local currency                             (0)%              8%               9%              14%             (9)%               24%     3%       (6)%
Note: JPM incl. Bank One (1Q2004 based on unaudited pro forma statement), Goldman Sachs excl. revenues from Principal Investments;
Translation into EUR based on average FX rate of respective reporting period; figures may not add up due to rounding differences
Source: Company data
Investor Relations 06/05 · 9
financial
     transparency.

No.1 Sales & Trading franchise, with above-market momentum
Sales & Trading revenues 1Q2005, in EUR bn
                                                                                                                                                    Equity

       3.2                                                                                                                                          Debt / Other
                          3.0                                                                                                                       products
                                            2.7
       0.8                                                     2.5                2.4
                          1.2               0.5                                                      2.2
                                                                                                                        2.0         2.0
                                                               1.1                                   0.4                                      1.8
                                                                                  0.9                                   0.5         0.8       0.6
       2.4                                  2.2
                          1.9                                                                        1.7                1.6
                                                               1.4                1.5                                               1.3       1.2

                    Goldman            Citigroup              UBS             Morgan               JP              Lehman          Merrill   Credit
                     Sachs*                                                   Stanley*           Morgan            Brothers*       Lynch     Suisse

Change vs. 1Q2004
      19%                 0%                2%                (9)%                9%               (10)%               13%         (2)%      (3)%      In EUR
                          7%                8%               (10)%               16%                (5)%               21%          4%       (4)%      In local
                                                                                                                                                       currency
* 1Q2005: December to February
Note: JPM incl. Bank One (1Q2004 based on unaudited pro forma statement)
Translation into EUR based on average FX rate of respective reporting period; figures may not add up due to rounding differences
Source: Company data
Investor Relations 06/05 · 10
financial
     transparency.

Sales & Trading: increasing outperformance, greater stability
Sales & Trading revenues, in EUR bn
                                                                                                                                                    ∆ 27%
     Deutsche Bank                  International peers*
                                                                                                               ∆ 13%
                                                           ∆ 10%
33 ∆ 8%



22



11



00
         1Q         2Q        3Q        4Q                    1Q         2Q       3Q         4Q                   1Q         2Q           3Q   4Q    1Q

                        2002                                                 2003                                                2004               2005
Note: Deutsche Bank data for 2002 based on group structure as of 31 December 2003
* Average revenues of Citigroup, JP Morgan Chase, Goldman Sachs, Morgan Stanley, Merrill Lynch, Lehman Brothers, UBS and Credit Suisse;
JPM incl. Bank One (historical data based on unaudited pro forma statement); Conversion into EUR based on average quarterly FX rates
Source: Company data
Investor Relations 06/05 · 11
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     transparency.

Global Top 5 in Origination / Advisory products
Market share by fee pool in 1Q2005, in %

                                                                       +16%*
        8.3                                                           revenue
                        7.6                                            growth
                                                                                               2004: # 7

                                         5.8              5.5             5.4
                                                                                           5.0              4.9
                                                                                                                             4.5
                                                                                                                                             4.0
                                                                                                                                                      3.1




 JP Morgan Citigroup Goldman                             UBS                             CSFB            Morgan            Merrill       Bank of    Lehman
                      Sachs                                                                              Stanley           Lynch         America    Brothers


* Revenue growth 1Q2005 vs. 1Q2004 adjusted for currency movements. Without adjustment for currency movements, revenues would have increased 12%.
Note: Includes M&A, ECM, Investment Grade and High Yield Bonds, and loan products (excl. GTB & structured products)
Source: Dealogic (based on internal fee pool analysis of completed deals; M&A excluding deals with undisclosed deal values or advisors).
Investor Relations 06/05 · 12
financial
     transparency.

PCAM: World leading franchise by invested assets
As of 31 March 2005, in EUR bn


 UBS

 Merrill Lynch

                                                 573                                                         872

 Credit Suisse

 Morgan Stanley
                                                                                                             PWM: 146
 Citigroup(1)                                                                                                PBC: 153
                                                                                                                                                              Asset Mgmt.
 JP   Morgan(1)(2)
                                                                                                                                                              Private
 Goldman Sachs(3)                                                                                                                                             Banking
                                                                                                                                                              and other
 BNP

                            0                                          500                                         1,000                                       1,500

(1) Excluding PBC equivalent (DB invested assets comparable data not available)
(2) JPM Chase includes Asset & Wealth Management in total            (3) Goldman Sachs Asset Management includes assets held for high-net worth individuals
Note: Conversion into EUR based on spot rates; JPM incl. Bank One; Citigroup restated for revised structure
Source: Company data
Investor Relations 06/05 · 13
financial
     transparency.

PCAM – net new money of EUR 28 bn in 1Q2005
In EUR bn
                                                                                                                              2     872
                                                                                                                        24




                                      14                                                     2
                                                                  1

         828
                                                                                                                        28




       31 Dec                  FX effects /              Performance                       PBC                          AM   PWM   31 Mar
        2004                     Other                   movements                                                                  2005
                                                                                                          Net new money


Note: Figures are restated for revised invested assets definition; figures may not add up due to rounding differences
Investor Relations 06/05 · 14
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PBC – consolidating leadership among German retail banks …
Pre-tax profit, in EUR m

                 (1)
                                                                                           462
                                                                                                                                              1,007

                                                                                 381
Postbank(2)
                                                                                              480

                                                                 258
Commerzbank(3)                                                                   384

                                5
Dresdner         Bank(4)                                            280
                                                                                                                                           2003
                                                                                                 506                                       2004
HVB      Group(5)                        77
(1) PBC, underlying pre-tax profit (US GAAP)     (2) Retail banking (IAS)    (3) Retail banking (IAS)
(4) Personal Banking and Private & Business Banking (IAS)
(5) Business with private customers in Germany and Austria (IAS), includes EUR 56m gain on sale of BethmannMaffei in 1Q2004 and EUR 279m
gain on sale of Norisbank in 3Q2003; excluding business area Central and Eastern Europe (no detailed revenue breakdown available)
Source: Company data
Investor Relations 06/05 · 15
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     transparency.

… with fully-enabled, multi-country European distribution
Branches as of 31 Dec 2004 / Growth initiatives

                                                      Clear market leader
                                                      320 new mobile sales force offices    770       30% more branches
                                                      Expanding inhouse sales force                   Building up sales force

                                                                                                            32
                                                                              25
        Consumer                                                                                   Poland
        finance: sales                                              Belgium
        extension
        Expanding                                                                     Germany
        inhouse sales                 ~255                                                  ~240
        force                                                                                               # 1 foreign bank
                                                                                                            15% more branches
                                                                                           Italy            Doubling consumer
                                                   Spain                                                    financing units
                                                                                                            80 new Private
                                                                                                            Banking units



Not shown: 2 branches in Portugal and 1 branch in the Netherlands
Investor Relations 06/05 · 16
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     transparency.

Strong diversification by business
FY 2004

                        Underlying revenues                 Underlying pre-tax profit
   Group total:                                      Group total:
   EUR 21.2 bn                                       EUR 4.0 bn
                                         PBC
                                  21%                                            PBC
                                                                         25%

    CIB                                              CIB
                                      16%
                                               AWM                         12%
                                                                                    AWM


                                  S&T revenues                             S&T profit
                                 private clients*                     private clients*


* Approximation
Investor Relations 06/05 · 17
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Outstanding global diversification …
Regional split of revenues
                                                                                         EUR 22 bn

                                                                                               11%               Asia / Pacific              3.9%

                                                                                               26%               Americas                    3.1%
                                                 EUR 10 bn

                                                        4%                                                       Europe
           EUR 6 bn                                     7%                                     31%                                           2.8%
                                                                                                                 (excl. Germany)
   2%                                                  20%
   4%           15%
                                                       69%                                     32%               Germany                     1.9%
                79%


              1989                                     1995                                    2004                                   CAGR Global revenue
                                                                                                                                       pool 2003 – 2007e*
* Source: Boston Consulting Group
Note: Deutsche Bank figures for 1989 are based on HGB, for 1995 are based on IAS, for 2004 on U.S. GAAP and are therefore not fully
comparable; 1989 and 1995 split based on total net revenues before consolidation; 2004 split based on underlying revenues
Investor Relations 06/05 · 18
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… and global earnings mix
Income before taxes 2004, in EUR bn

                                                                                                                             0.6           4.0
                                                                                         1.1


                                                     1.0


                1.4




           Germany                          Europe                                  Americas                             Asia / Pacific   Total
                                        (excl. Germany)
Note: Numbers may not add up due to rounding
Source: 20-F (according to booking locations and based on internal assumptions regarding specific consolidation items)
Investor Relations 06/05 · 19
financial
     transparency.

Agenda



  Increased operating strength




  A strong growth platform
                                 Clear investment criteria


                                 Organic and external growth
  A clear growth strategy

                                 Business realignment accelerates growth


Investor Relations 06/05 · 20
financial
     transparency.

Pursuing a focused growth strategy

          Core businesses                  Reach         Market positioning 2004

          Corporate and                                  Top
                                            Global              by revenues*
       Investment Banking                                 3

                                                         Top
        Asset Management                    Global              by revenues*
                                                          10

            Private Wealth                               Top    by client
                                            Global
             Management                                   10    business volume

                                                           Leading retail bank
            Private and                                    in Germany
                                         Multi country
          Business Clients                                 Among leading foreign
                                                           banks in Italy and Spain

* Relative to relevant peer group
Source: Scorpio Partnership, Euromoney
Investor Relations 06/05 · 21
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     transparency.

Strategy includes both organic and external growth


                            Organic growth               Growth by acquisition

          Hiring selected bankers / teams           Acquisitions / stakeholdings in key
                                                    regions / key product areas
          Expansion in high value products /
          growth markets
                                                    Focus: high growth / high value
          Distribution / white-label agreements
                                                    Strict hurdle criteria
          Exploiting cross-selling opportunities,
          e.g. CIB products for retail investors    Strict integration timetables




Investor Relations 06/05 · 22
financial
     transparency.

Investments for growth in all key regions since 2002

                                     Organic growth                  Growth by acquisition            Stake
                                PWM sales force expansion         Harvest Asset Management,           20%*
     Asia /
                                EM Sales & Trading platform       China (2005)
     Pacific
                                DWS expansion

                                M&A / ECM specialists             Scudder (2002)                      100%
   Americas                     Sector expansion                  RREEF (2002)                        100%
                                (Healthcare, Technology)          Berkshire Mortgage Finance (2004)   100%

                                Retail network expansion          UFG (Russia, 2004)                  40%*
    Europe                      (Poland, Italy)                   Rued, Blass & Cie                   100%
     excl.                      Consumer Finance Group            (Switzerland, 2003)
   Germany                      80 private banking units          Bender Securities (Turkey, 2005)    100%

                                Expansion of mobile sales force   Wilhelm von Finck (2004)            100%
   Germany                      320 financial advisory offices    Dresdner Bank domestic              100%
                                                                  custody (2004)

* With option to increase
Investor Relations 06/05 · 23
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     transparency.

Accelerating growth: the Business Realignment Program


            Business Realignment Program               Objectives

      Aligned Sales & Trading              Anticipate and shape market
                                           development
      Unified coverage                     Capture growth opportunities
                                           – Enter high-growth markets
      Reorganisation of Asset Management   – Optimise client distribution

      Strengthened regions and             – Demand-led innovation
      focus on Germany                     Further improve service to clients

      Streamlined infrastructure           Exploit potential for cost efficiencies



Investor Relations 06/05 · 24
financial
     transparency.

Summary


                                 Transformation: much-improved earnings power
  Increased operating strength   Significant reduction in risks …
                                 ... with value for shareholders


                                 World-leading franchises in core businesses:
                                 CIB and PCAM
  A strong growth platform
                                 Above-market growth momentum
                                 Strong diversification

                                 Clear investment criteria
  A clear growth strategy        Organic and external growth
                                 Business realignment accelerates growth



Investor Relations 06/05 · 25
financial
     transparency.

Cautionary statement regarding forward-looking statements and
non-U.S. GAAP financial measures
This presentation contains forward-looking statements. Forward-looking statements are statements that are not
historical facts; they include statements about our beliefs and expectations. Any statement in this presentation
that states our intentions, beliefs, expectations or predictions (and the assumptions underlying them) is a
forward-looking statement. 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 trading revenues, potential defaults of borrowers or
trading counterparties, the implementation of our Business Realignment Program, 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 24 March 2005 in the
section "Risk Factors." Copies of this document are available upon request or can be downloaded from
www.deutsche-bank.com/ir.

This presentation contains non-U.S. GAAP financial measures. For a reconciliation to directly comparable
figures reported under U.S. GAAP refer to the 1Q2005 Financial Data Supplement, which is accompanying this
presentation and available on our Investor Relations website at www.deutsche-bank.com/ir.

Investor Relations 06/05 · 26

								
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