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Investor Deep DiveHow we compete to winChristian SewingChief Executive OfficerDeutsche Bank10 December 2019Confidential
Recap of our strategy
We are off to a good start(1)(2)Reducedadjusted costMaintainedstrong capitalDe-risking of CapitalRelease Unit 21.5bn(1,2)CET1 ratio 13%(1)RWA 52bn(1)Created CorporateBankCore Bank revenuesand profitabilitystableClients & employeebuy-inExiting Equitiestrading with lessknock-on impactTurned aroundInvestment BankRegulatorsrecognize progressIT strategy inimplementation2019 targetsExcluding transformation charges and impact from Prime Finance platform to be transferred to BNP ParibasChristian SewingInvestor Deep Dive, 10 December 20192
Working to offset headwindsLower forlonger ratesECB deposit rate(1), in %GeopoliticalrisksWorld trade, last 3 months(2),in % yoyIncreasing regulatoryrequirementsNumber of pages perregulatory filing(3)0.460.351004803600.20.12Trade war10.00(0.1)2008(1)(2)(3)Slowing economicgrowthTodayPolitical uncertaintyJan 2018TodayBrexit4020019802000TodaySource: ECBSource: CPB World Trade MonitorSource: FDIC and Koch, Ash and Siems, DB Global Markets Research, US Global InvestorsChristian SewingInvestor Deep Dive, 10 December 20193
Our way to fundamentally transform the bankDeliveringreturns forshareholdersChristian SewingInvestor Deep Dive, 10 December 2019RefocusFOUR BUSINESSESCOMPETING TO WINRestructureIMPROVE EFFICIENCY ANDINFRASTRUCTUREReinvigorateLEADERSHIP AND SPIRITReturnFREE UP CAPITAL4
Refocus: Four businesses competing to winWhat we promised in JulyWhere we stand todayAdjusted revenues(1)Exit loss makingbusinessesCore Bank, in bnRefocus17.6Focus on marketleading businessesand morepredictable revenuesEnhance clientfocus(1)(2)(3)Leading businesses9M 2018Adjusted profit before tax(2)17.49M 201923%23%77%77%Corporate Bankmarket position(3)Investment Bankmarket position(3)2.12.29M 20189M 201931%Other69%% of marketleading(3)revenuesPrivate Bankmarket position(3)Excluding specific revenue itemsBased on revenues ex specific items, noninterest expenses ex transformation related effects (i.e., transformation charges, transformation related restructuring &severance and impairment of goodwill)Leading defined as top 5 except for Corporate Bank defined as top 6 market position based on 1H 2019 revenues; IB source: 1H 2019 Coalition dataChristian SewingInvestor Deep Dive, 10 December 20195
Restructure: Improve efficiency and infrastructureReduce adjusted costto 17bn in 2022Front-to-back costreductions reflectingbusiness exitsPreserve investmentsin controls andtechnologyReduce workforce to 74,000 by 20225.7Q1 20184.5%5.6Q2 20185.5Q3 20185.4Q4 20185.35.3Q1 2019Q2 20194.8%97.1Q1 2018(1)(2)(3)% in controls(3)3.8%Adjusted cost(1), in bnRestructureWhere we stand todayEmployees(2), in # kWhat we promised in July5.2Q3 20195.7%95.494.7Q2 2018Q3 201891.791.590.9 90.0Q4 2018Q1 2019Q2 2019Q3 2019Excluding bank levies and transformation charges. For further details see slide 18 in the Chief Financial Officer presentationFull-time equivalent as of quarter-endIncluding Non-financial Risk Management, Group Audit, Compliance, Client lifecycle Management and Anti Financial CrimeChristian SewingInvestor Deep Dive, 10 December 20196
Reinvigorate: Leadership and spiritWhat we promised in JulyWhere we stand todayOperational losses, in bnFaster decisionmaking anddisciplinedimplementationEmbracingbroader culturalchange(1)(2)(3)% of employees favorable(2)New managementteam and structurewith incremental skillset and improvedbusiness focusChange in conductReinvigorateRed flags(1), in 406358201720181269M2019Inspired & productive people(3)666263201720182019726465201720182019KPI to monitor employees' adherence to certain risk-related policies and control processesDeutsche Bank People survey resultsDue to questionnaire changes between 2017 and 2019, the trend for inspired & productive people is indicative only. 2019 score includes Postbank resultsChristian SewingInvestor Deep Dive, 10 December 20197
Return: Free up capitalWhat we promised in JulyWhere we stand today13.4Maintain at least 12.5%CET1 ratio through owncapital resources. Targeta 5% leverage ratio 13.011.8CET 1 ratio, in %ReturnQ3 20192019target11.6CRU, RWA in bnFree up capital fordistribution starting in2022(1)20725652Net impacton groupCET1 ratio(bps)(4)2018Maintainedrobust balancesheet includingstrong CET 1ratioSREPSREPrequirement requirement20192020(1)Capital Release Unit(CRU) financing therestructuring(16)0.25%Q3 2019Strong start todeleveraging theCapitalRelease Unit2019targetReduced Pillar 2 requirement of 2.5% following 2019 Supervisory Review and Evaluation Process (SREP), applicable from 1 January 2020Christian SewingInvestor Deep Dive, 10 December 20198
Dedicated transformation role to deliver on ss modeltransformationClients, growthand innovationCosts, tech andinfrastructureefficiencyLeadership andintegrity cultureCapital andbalance sheetefficiencyCorporate bankinggrowthOne Bankclient focusIT and dataefficiencyLeadership cultureCapitalRelease UnitInvestment bankingrefocusProduct & serviceinnovationInfrastructure targetoperating modelClient-lifecyclere-engineeringCapital accretion andoptimizationPrivate BankefficiencySustainablebanking (ESG)Workforce andcompensation costRegulatorycomplianceBalance sheetexposuremanagementExpense and processoptimizationFront-to-back controlenhancementLiquidity and fundingoptimizationDWS growthFinancial & analyticsenhancementChristian SewingInvestor Deep Dive, 10 December 20199
Our path to sustainable profitability
What has changed since July2022 10Y interest rateStrategyannouncement(July)Mitigating measuresUpdatedplan(December)Pricing and charging for negative interest ratesEUR1.1%0.5%ECB tieringAdvise clients in migrating from deposits tohigher yielding investment assetsUSD2.7%2.0%Improvement of liquidity reserve managementNote:All figures end of period; market implied rates as of May 2019 for strategy announcement on 8 July plan and Nov 2019 for updated planning process; 10Y Swaprates vs. 3M Euribor/LiborChristian SewingInvestor Deep Dive, 10 December 201911
(1) – (2)Our path to improved Group profitabilityPost-tax return on tangible equity, in %Additional measure:— Reduce 1bn stranded costsin the Capital Release Unit8%(1)%(1)-(2)%2-3%5%Additional measure:— Passing throughnegative interest rates2-3%0%9M 2019ex items(1)RevenuedriversCostdriversProvision forcredit lossesOther(2)CapitalRelease Unit2022 GrouptargetCore Bank(1)(2)Items include specific revenue items, impairments of goodwill and other intangible assets, software and real estate impairments, transformation relatedrestructuring and severance and deferred tax asset valuation adjustments. 9M 2019 reported post-tax return on tangible equity: (10.3)%. For further details seeslides 18 and 19 of the CFO presentationIncludes impacts from nonoperating costs, tax, additional equity components and tangible equityChristian SewingInvestor Deep Dive, 10 December 201912
Grow the core: our Corporate Bank2018 – 2022 targeted revenue compound annual growth rateStrategic prioritiesCompetitive advantagesLeading indicatorsLoans, in bn— Be the bank ofchoice for the CorporateTreasurer— Capture the full potentialof our paymentsbusiness3%— Grow Asia-Pacificrevenues— Export domesticcoverage concept to therest of the world(1)(2)Integrated payments & FXsolutions in 125 currencies#1 EUR & largest non-USdomiciled USD clearer(1)Banking network across 145countries with deep rooted localpresence in Asian markets 5%11311920189M 2019# cash transactions(2), in bn 10%2.02.2YTD 9M 2018YTD 9M 2019Trusted advisor to 900kcommercial clients in GermanySource: SWIFTCorporate clients onlyChristian SewingInvestor Deep Dive, 10 December 201913
Demonstrate resilience in our Investment Bank2018 – 2022 targeted revenue compound annual growth rateStrategic prioritiesCompetitive advantages(1)#3#1— Stabilize our revenuesand focus on corestrengths2%— Invest in technologycapabilities to optimizeflow business#2Adjusted costs(2), in bnGlobally in Credit(3)— Drive cost reductionswithin infrastructure— Optimize fundingLeading indicators(6)%4.74.59M 20189M 2019Globally in FX(4)#1Leveraged Finance inEMEA(3)#3In EMEA & APAC FIC(3)Revenues with top100 institutional clients 20%9M 2018 YTD(1)(2)(3)(4)9M 2019 YTDData as of Nov 2019Excluding transformation chargesSource: Dealogic, 1H 2019 Competitor AnalyticsSource: Euromoney 2019 survey for FXChristian SewingInvestor Deep Dive, 10 December 201914
Improve efficiency in our Private Bank2018 – 2022 targeted revenue compound annual growth rateStrategic prioritiesCompetitive advantages(1) 22m#1Clients— Drive efficiencies, inparticular in Germany— Monetize #1 position inGermany— Convert deposit intoinvestment products /shift into mandates 490bn(1)Cost synergies, in bnworldwideAssets underManagement 0.220182019 outlookNet new assets, in bn 230bnLoan bookTop 5Euro GDPgrowthcountriescovered— Grow international andwealth platforms0%Leading indicators 102018Q3 2019Data as of Q3 2019Christian SewingInvestor Deep Dive, 10 December 201915
Delivering sustainable value in Asset Management2018 – 2022 targeted revenue compound annual growth rateStrategic prioritiesCompetitive advantages(1)— Launch innovativeproducts and maintainstrong performance trackrecord— Leverage strategicpartnerships and broadproduct offering to reachnet inflow target of 3-5%— Become ESG thoughtleader in the AM industry— Make DWS a top 10Asset Manager globally1%(1)(2)(3)(4)(5)— Take further costmeasures to improveefficiency andprofitability#1#1Asset ManagerRetailin Germany(2)#2Manager of ExchangeTraded Funds inEurope(3)#4Insurance AssetManager globally(2)Leading indicatorsMorningstar 4- and 5-star ratedfunds 41156197Q1 2018 (IPO)Q3 2019Net flows, in bn(16)9M 2018139M 2019Cost/Income ratio(5)81%AuM outperformanceagainst benchmark(4)78%9M 2018(2)ppt77%9M 2019Data as of Nov 2019BVIETFGIInsurance Outsourcing ReportDWS adjusted CIR: 9M 2018 72.8% and 9M 2019 70.1%Christian SewingInvestor Deep Dive, 10 December 201916
Collaboration opportunities to drive growth— Wealth and Entrepreneur Bank initiative— “Entrepreneur initiative“— Partnership and referral model— Family office initiative— Risk management solutions for corporate clients— Corporate Finance for SME— Distribution of DWS funds through branches— DWS model portfolio services to WealthManagement platform— Partnership in cash/short duration products— Execution of collaboration within trading— Origination of Trade Finance Risk for DWSmanaged funds— Deposit conversion into DWS managed funds— ESG offering for institutional investors, wealthyindividuals and Private Bank clients— ESG products generated in the Investment BankChristian SewingInvestor Deep Dive, 10 December 201917
Technology drives efficiency and future growthExisting platforms 85k active Autobahn users 10bn tradable FX spot prices quoted dailyIntegrated payment and FX solutions in125 currencies 40% year-to-date in monthly active usersof our DB Mobile AppTech-driven, (open) platformbanking in order to:- master flow efficiently- better understand clientneeds 250m client logins to our DB Mobile AppYTD 201911m online retail clientsChristian SewingInvestor Deep Dive, 10 December 201918
On track to reach adjusted cost targetsAdjusted costs ex transformation charges, in bnAlmost half of whichalready in run )20182019 target (1)2020 target (1)2022 targetExcluding impact from Prime Finance platform to be transferred to BNP ParibasChristian SewingInvestor Deep Dive, 10 December 201919
We are managing the bank conservatively(1)(2)(3)(4)(5)20079M 2019Net balance sheet assets(1),in bn1,4951,019Common Equity Tier 1 capitalratio(2)8.6%(3)13.4%Provision for credit losses as a% of loans31bps15bpsLoans as a % of deposits(4)44%74%Most Stable Funding(5)30%80%Net balance sheet of 1,019bn is defined as IFRS balance sheet ( 1,501bn) adjusted to reflect the funding required after recognizing (i) legal netting agreements( 355bn), cash collateral received ( 53bn) and paid ( 41bn) and offsetting pending settlement balances ( 34bn)Fully loaded2007 ratio includes hybrid instruments as definition of CET1 ratio did not exist under the previous Basel regimeLoan amounts are gross of allowances for loan lossesMost stable funding as a proportion of the total external funding profile. Most stable funding is defined as funds from Capital Markets & Equity, Private Bank andCorporate BankChristian SewingInvestor Deep Dive, 10 December 201920
Our targetsStabilize,then grow revenuesCut costsMaintain capital disciplineGrow Group revenues to 24.5bn by 2022Reduce adjusted cost to 17.0bn in 2022Maintain CET 1 ratio of at least12.5% and free up capital fordistribution from 2022Reaffirm our Return on Tangible Equity target of 8% in 2022Christian SewingInvestor Deep Dive, 10 December 201921
A new and better Deutsche Bank
How we deliverFixing the bank with existing capital resourcesno capital increase plannedRestructuring decisivelyclosing businesses, not trimmingRealistic financial planswe deliver what we promiseAccountability in short- and mid-termclear financial targetsAddressing key concernsno compromises, no duplicationsNew management teamwith relentless execution discipline
Investor Deep DiveJames von MoltkeChief Financial OfficerDeutsche Bank10 December 2019Confidential
SummaryOn track to reach short-term targetsAffirming 8% return on tangible equity target for 2022 – working to fully overcome headwindsCost reductions driven by infrastructure, technology, Capital Release Unit and German retail integrationDisciplined capital management to maintain CET 1 ratio at or above target levelsJames von MoltkeInvestor Deep Dive, 10 Decem
(3) Leading defined as top 5 except for Corporate Bank defined as top 6 market position based on 1H 2019 revenues; IB source: 1H 2019 Coalition data Adjusted revenues (1) Adjusted profit before tax (2) 17.6. 17.4. 9M 2018. 9M 2019. 2.1. 2.2. 9M 2018. 9M 2019. 77%. 23%. Investment Bank market position (3) Other % of market leading (3) revenues. 77%. 23%. Corporate Bank market position
