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Deutsche Bank - Annual Report 2010 Goodwill by Segment Corporate Global Banking & Transaction Asset and Wealth Private & Corporate in € m. Securities Banking Management Business Clients Investments Total Balance as of January 1, 2009 3,128 456 2,975 974 – 7,533 Purchase accounting adjustments – – – – – – Goodwill acquired during the year 2 1 – – – 3 Transfers – – (306) – 306 – Reclassification from (to) ‘held for sale’ (14) – – – – (14) Goodwill related to dispositions without being classified as ‘held for sale’ – – – – – – 1 Impairment losses – – – – (151) (151) Exchange rate changes/other (11) (4) 46 – 18 49 Balance as of December 31, 2009 3,105 453 2,715 974 173 7,420 Gross amount of goodwill 3,109 453 2,715 974 849 8,100 Accumulated impairment losses (4) – – – (676) (680) Balance as of January 1, 2010 3,105 453 2,715 974 173 7,420 Purchase accounting adjustments – 5 (4) – – 1 Goodwill acquired during the year 2 – 844 2,049 – 2,895 Transfers – 3 (3) – – – Reclassification from (to) ‘held for sale’ – – (20) – – (20) Goodwill related to dispositions without being classified as ‘held for sale’ – – – – – – Impairment losses – – – – – – Exchange rate changes/other 225 26 192 2 21 466 Balance as of December 31, 2010 3,332 487 3,724 3,025 194 10,762 Gross amount of goodwill 3,337 487 3,724 3,025 903 11,476 Accumulated impairment losses (5) – – – (709) (714) 1 Impairment losses of goodwill are recorded as impairment of intangible assets in the income statement. Deutsche Bank - Annual Report 2010 Carrying Amounts of Goodwill Corporate Global Banking & Transaction Asset Private Wealth Private & Corporate Total Securities Banking Management Management Business Clients Investments Others Goodwill As of December 31, 2009 in € m. 3,105 453 1,788 927 974 – 174 7,420 in % 42% 6% 24% 12% 13% N/M 2% 100% As of December 31, 2010 in € m. 3,332 487 1,988 1,736 3,025 – 194 10,762 in % 31% 5% 18% 16% 28% N/M 2% 100% N/M – not meaningful Deutsche Bank - Annual Report 2010 Primary Cash Generating Unit – Description of key assumptions Management’s approach to determining the values assigned to key Uncertainty associated with key assumption and potential Primary cash-generating unit Description of key assumptions assumptions events/circumstances that could have a negative effect - Cost savings in light of Group-wide infrastructure efficiency increase - The key assumptions have been based on a combination of internal - Uncertainty around regulation and its potential implications not yet and Complexity Reduction Program and external studies (consulting firms, research) anticipated - Successful integration of the investment bank - Management estimates concerning CIB integration and cost reduction - Unforeseen macroeconomic environment leading to slowdown in - Robust, possibly increasing trading volumes and margins program are also based on progress made to date across various activity Corporate Banking & Securities - Focus on flow products and benefiting from leading client market initiatives - Attrition and loss of key talent in certain sectors and resurgence of shares competition - Increased focus on EM Debt, commodities and electronic trading - Cost savings are not achieved to the extent planned - Corporate Finance fee pools continue to recover - Cost savings in light of Group-wide infrastructure efficiency increase - The key assumptions have been based on a combination of internal - Unexpected weak recovery of the world economy and its impact on and Complexity Reduction Program and external sources trade volumes, interest rate and foreign exchange rates - Capitalize on synergies resulting from CIB integration - Macroeconomic trends are supported by studies while internal growth - Delay in implementation of efficiency measures - Stable macroeconomic environment plans and impact from efficiency initiatives have been based on - Uncertainty around regulation and its potential implications not yet - Interest rate levels management/high level business case assumptions anticipated - Recovery in international trade volumes, cross-border payments and Global Transaction Banking corporate actions - Deepening relationships with Complex Corporates and Institutional Clients in existing regions while pushing further growth in Asia - Successful integration of parts of ABN AMRO’s corporate and commercial banking activities in the Netherlands - Cost savings in light of Group-wide infrastructure efficiency increase - Equity Markets growth assumptions are based on internal studies - Reoccurrence of market volatility and Complexity Reduction Program as well as re-engineered AM from DB Research - Investors continue to retreat to cash or simpler, lower fee products platform - Other business growth and efficiency assumptions are based on - Cost savings are not achieved to the extent planned - Market appetite to regain prior year losses stimulating alternative business management input validated by internal independent function assets investments - Platform cost reductions are derived from analysis of competitors and - Growing allocations into alternative assets trend analyses within PCAM - Continuing recovery in equity and real estate markets Asset Management - Ongoing Growing wealth in emerging economies and Sovereign wealth Funds - Ongoing shift from state pension to private retirement funding and benefiting from product innovation - Outsourcing of investment management mandates by insurance companies - Increased interest and appetite for Climate Change investments - Cost savings in light of Group-wide infrastructure efficiency increase - Complexity Reduction expectations based on internal input - Unfavorable fiscal policy for off-shore banking and Complexity Reduction Program - Macroeconomic data and market data (e.g. asset classes recovery) - Uncertainties in Euro and USD zone and overall unstable foreign - Market appetite to regain prior year losses stimulating alternative based on DB Research input exchange environment assets investments - Growth potential across markets based on external sources (strategy - Volatility in emerging markets - Continuing recovery in equity and real estate markets consultancies) and historical performance - Growing wealth pools in mature and emerging markets - Sal. Oppenheim targets based on separate integration analyses and - Market share increases in fragmented competitive environment strategy Private Wealth Management - Asset gathering and allocation shifts - benefiting from home Market leadership - Positive results from Sal. Oppenheim integration - Organic growth in Asia/Pacific with hiring and intensified cooperation with CIB - Complexity reductions and efficiency improvements by enforcing a global PWM platform - Cost savings in light of Group-wide infrastructure efficiency increase - All assumptions regarding PBC’s future development are backed with - Sharp drop in economic growth and Complexity Reduction Program respective projects and initiatives - Continued low interest rates - Leading position in home market, Germany, strong position in other - All initiatives were based on a business case developed by - Risk that synergies related to Postbank acquisition do not realize or European markets and growth options in key Asian countries management validated by internal and external data realize later than foreseen - Achievement of synergies between Deutsche Bank and Postbank on - Costs to achieve the synergies are higher than foreseen revenue and cost side Private & Business Clients - Market share gains in Germany via customer and volume gains using the strong advisory proposition - Benefiting from branch network expansion in India and stake increase in Hua Xia Bank in China Deutsche Bank - Annual Report 2010 Primary Cash Generating Units Discount rate (pre-tax) 2010 2009 Corporate & Investment Bank Corporate Banking & Securities 139.00% N/A1 Global Transaction Banking 117.00% 125.00% Private Clients and Asset Management Asset Management 125.00% 135.00% Private Wealth Management 122.00% 132.00% Private & Business Clients 131.00% 131.00% N/A – Not applicable 1 Respective pre-tax discount rates in 2009 were 14.7 % for Global Markets and 14.5 % for Corporate Finance.
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