Executing on our strategic transformation - May 2021 Deutsche Bank - Investor Relations
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Executing on our strategic transformation
May 2021
Deutsche BankAgenda
1 Who we are today
2 How we aim to improve returns for our shareholders
3 Appendix
Deutsche Bank 2
Investor RelationsA strong German bank with a broad global network
Presence in 59 countries(1)
Managing over € 1.3tn of wealth for clients(2,3)
#1 Retail Bank in Germany
Regional revenue split(1) Business revenue split(2)
Corporate
Asia Pacific Bank Global leader in Financing and FX
Private
13% Bank 18%
Germany 30% Asset
38%
Americas 20% 9% Management
#1 Euro clearer
28% 43%
EMEA Investment
Bank
Note: Throughout the presentation figures may not add up due to rounding differences
(1) As of 31 December 2020
(2) Data as of 31 March 2021
(3) Includes Private Bank and Asset Management
Deutsche Bank 3
Investor RelationsWe have made material progress
Phase 1
Phase 2 Phase 3
Stabilisation Transformation Sustainable profitability
1 2 3 4
Competitiveness and Disciplined Return capital to
Grow profitability
stability of Core Bank cost reduction shareholders
>70% 13th € 1.6bn € 5.0bn
Revenues in market leading Consecutive quarter Profit before tax for Q1 2021 Committed to distribute to
businesses(1) of YoY cost reductions(2) - the best quarter in seven shareholders from 2022
years
(1) Data as of September 2020. Leading defined as top 5 except for Corporate Bank defined as top 6 market position; IB source: McKinsey data
(2) Adjusted costs excluding bank levies and transformation charges related to the strategic announcement on 7 Jul 2019
Deutsche Bank 4
Investor RelationsQ1 demonstrated progress against 2022 financial plan
2022 targets and
Q1 2020 Q1 2021 ambitions
Revenues € 6.4bn € 7.2bn ~€ 24.4bn
Adjusted costs ex transformation charges € 4.9bn(1) € 4.6bn(1) € 16.7bn
Provision for credit losses € 0.5bn € 0.1bn € 1.2bn
Cost/income ratio 89% 77% 70%
Return on tangible equity(2) (0)% 7% 8%
Core Bank return on tangible equity 5% 11% >9%
Note: Percentages may not precisely reflect the absolute figures due to rounding differences.
(1) Adjusted costs ex bank levies, unexpected deposit guarantee scheme premium (in Q1 2021), transformation charges and expenses eligible for reimbursement related to Prime Finance.
(2) Post-tax return on average tangible shareholders’ equity is calculated on net income after AT1 coupons
Deutsche Bank 5
Investor Relations1 Well positioned for key structural trends
Investment Bank Corporate Bank
A leading global fixed income and Global “Hausbank” in Germany for 150
financing business; focused global O&A years with a leading network across
franchise 151 countries
Strategic priorities: Strategic priorities:
Client reengagement Focus on Asia Pacific
Targeted transformation in FIC Targeted growth investments,
incl. payments
Private Bank Asset Management
Leading German retail bank with a Global Asset Manager with a diversified
focused international advisory bank product range
and global wealth manager
Strategic priorities: Strategic priorities:
Loan volume and investment product growth Expand partnerships
Repricing ESG, Alternatives and Passive
Deutsche Bank 6
Investor Relations1 Progress on strategic priorities
Q1 2021
Investment Bank Corporate Bank
Double digit percentage revenue growth for the 6th
✔ €83bn deposits under charging agreements with quarterly
✔
consecutive quarter revenues of €74m
✔
Continued client re-engagement and growth in client ✔
Progress in clearing payments via online marketplaces
intensity and expansion of partnership with Mastercard
PBT RoTE PBT RoTE
+134% +11ppt +90% +3ppt
Private Bank Asset Management
€ 15bn of net inflows across AuM and net new loans, in
✔ At € 820bn, AuM reached record highs for DWS with
✔
line with our 2021 ambition growth in our targeted asset classes
✔
Reached agreement with workers council on distribution ✔
DWS laid foundations for a standalone technology
network optimization to close ~150 branches in Germany platform
in 2021
PBT RoTE PBT RoTE
+92% +3ppt +66% +13ppt
Deutsche Bank 7
Investor Relations1 Growing revenues under refocused strategy
Core Bank revenues(1) excluding specific items(2), in € bn
+7%
25.0
24.4
23.3
5.2
Corporate Enhanced client focus
5.2
Bank
10.1
Investment
7.3 Focus on market leading businesses
Bank
Private
Bank
8.2 8.1 Exit loss making businesses
Asset
Management 2.3 2.3
Last 12 months Last 12 months 2022
(LTM) Q1 2020 (LTM) Q1 2021 Plan
(1) Corporate & Other revenues (LTM Q1 2020: € 226m, LTM Q1 2021: € (652)m) are not shown on this chart but are included in Core Bank totals
(2) Detailed on slide 30 of the Q1 2021 Analyst presentation
Deutsche Bank 8
Investor Relations2 Disciplined cost reduction
€ bn
Adjusted costs ex. transformation charges(1)
(3.3)
22.8 Reduce adjusted cost by 25% from 2018 -
21.5 2022
19.5
16.7
87% of transformation-related effects already
absorbed
~80% of 2021 reductions already in run-rate
2018 2019 2020 2022 Preserve investments in controls and
target technology
€ 2.8bn
Remaining targeted cost reductions to 2022
(1) Adjusted costs excluding transformation charges and expenses eligible for reimbursement related to Prime Finance
Deutsche Bank 9
Investor Relations3 Strategic transformation drives higher profitability
In € bn, unless stated otherwise
Last 12 months (LTM) adjusted profit (loss) before tax(1)
75%
5.3 Core Bank
4.2
3.7
2.7 3.0 3.1
2.4
Capital
(2.0) (1.7) Release
(2.1) (2.4) (2.4)
(2.6) (2.7) Unit
Q3 Q4 Q1 Q2 Q3 Q4 Q1
2019 2020 2021
(1) 2019 figures based on reporting structure as disclosed in 2020 Annual Report
Deutsche Bank 10
Investor Relations4 Committed to returning capital to shareholders
Common Equity Tier 1 (CET1) capital ratio
13.6% 13.6% 13.6% 13.7%
>12.5% Minimum Committed to maintaining a CET1 ratio above 12.5%
regulatory through transformation period
requirement
10.4%
CET1 ratio gives sufficient headroom to support
clients and absorb regulatory inflation
Remain committed to € 5bn of capital for distribution
to shareholders from 2022
2018 2019 2020 Q1 2021 2022
target
Deutsche Bank 11
Investor RelationsFinancial targets
2022 targets
Group return on tangible equity 8%
Core Bank return on tangible equity >9%
Adjusted costs(1) € 16.7bn
Cost income ratio 70%
CET1 ratio >12.5%
Leverage ratio ~4.5%
(1) Adjusted costs excluding transformation charges
Deutsche Bank 12
Investor RelationsAgenda
1 Who we are today
2 How we aim to improve returns for our shareholders
3 Appendix
Deutsche Bank 13
Investor RelationsOur path to improved Group profitability
Return on tangible equity
Cost/
Income 87% 70%
ratio(1)
8%
2%
0%
1%
4%
2%
(1%)
9M 2020 Revenue Cost Provision for Other(3) Capital 2022
ex items(2) drivers drivers credit losses Release Unit Group
target
Core Bank
(1) Cost/income ratio defined as total noninterest expenses as a percentage of reported total net revenues
(2) Items include specific revenue items, impairments of goodwill and other intangible assets, transformation costs, restructuring and severance, deferred tax asset valuation and share
based payments adjustments. 9M 2020 reported return on tangible equity: 0.2%.
(3) Includes impacts from nonoperating costs, additional equity components and tangible equity
Deutsche Bank 14
Investor RelationsHigher ROTE through lower adjusted costs - we’re on track
Adjusted costs excluding transformation charges, in € bn
(3.3)
22.8
21.5
(2.8)
19.5
(0.5)
(0.5)
(0.8)
0.0 (0.3)
(0.7) 16.7
Corporate
Bank — Measures across infrastructure
Investment
Bank — Technology and support costs
— Infrastructure and distribution channel
Private Bank
optimization
Capital
Release Unit — Allocated cost reductions and bank levies
2018 2019(1) 2020(1) Corporate Investment Private Bank Asset Corporate Capital 2022 target
Bank Bank Management & Other Release Unit
(1) Adjusted costs excluding transformation charges and expenses eligible for reimbursement related to Prime Finance
Deutsche Bank 15
Investor RelationsDisciplined risk management
In € bn, unless stated otherwise
Credit risk Market risk
32 13 13 17 41 6
4.3 4.0
1.8 3.8 3.6
1.4
2.2 1.9
0.5 0.5 0.7 0.1
2016 2017 2018 2019 2020 Q1 2021 2016 2017 2018 2019 2020 Q1 2021
Provisions for credit losses xx In bps of average loans(1) Market risk trading economic capital(2)
Liquidity risk Non-financial risk(3)
300 280 259 243 243 150% 3.1
250 219 222
200 140%
150
100 130% 0.7
50 0.3 0.4 0.4
0.02
0 120%
2016 2017 2018 2019 2020 Q1Q12021 2016 2017 2018 2019 2020 Q1 2021
2021
Liquidity reserves Liquidity coverage ratio Legal losses Non-legal operational losses
(1) Loans gross of allowance at amortized cost
(2) Sum of traded market risk economic capital and traded default risk economic capital; scope includes fair value banking book
(3) For risk management purposes, operational risk includes legal risk arising from loss events for operational shortcomings but excludes business and reputational risk
Deutsche Bank 16
Investor RelationsShare price at a discount to tangible book value per share
Price to tangible book multiples as of 7 May 2021
1.41x
Capital market perception improving
Stock trades well below Tangible book value per share at
~48% vs ~67% for European banks (SX7P)(1) and ~41%
premium for US banks (BKX)(1)
0.67x
We are on a good path to our targeted 8% return on tangible
0.48x equity in 2022
Well positioned for returns of capital to shareholders starting
from 2022 given comfortable headroom above capital
requirement
Deutsche Bank(2) Stoxx 600 KBW Bank Index
Banks Index
(1) SX7P (Stoxx 600 Banks Index), BKX (KBW Bank Index); Source: Bloomberg
(2) Data as of 07th May 2021: Deutsche Bank share price € 11.48; Tangible book value per share € 23.87
Deutsche Bank 17
Investor RelationsOutlook
Improved revenue trajectory in the Core Bank, supporting 2022 target
Revenue growth and cost discipline driving cost/income ratio towards 70%
Improved credit environment leads to reduced CLP guidance of ~25bps for 2021
Continued prudent balance sheet management in line with objectives
Continuing to work towards 8% RoTE target despite unplanned items
Deutsche Bank 18
Investor RelationsAgenda
1 Who we are today
2 How we aim to improve returns for our shareholders
3 Appendix
Deutsche Bank 19
Investor RelationsDeutsche Bank share price(1) since strategy announcement
180
170
160
US peers
150
140
130
DAX30
120
European
110 peers
100
90
80
70
60
50
08. Jul 2019 01. Oct 2019 01. Jan 2020 01. Apr 2020 01. Jul 2020 01. Oct 2020 01. Jan 2021 01. Apr 2021
Source: Bloomberg, US peers: Bank of America, JPMorgan, Citi, Morgan Stanley, Goldman Sachs; European peers: Barclays, Credit Suisse, UBS, BNP, Societe Generale, HSBC
(1) Deutsche Bank share price appreciation/depreciation; since July 8, 2019, relative to Dax as well as to peers, indexed
Deutsche Bank 20
Investor RelationsSpecific revenue items and adjusted costs – Q1 2021
In € m
Q1 2021 Q1 2020 Q4 2020
Core Core Core
CB IB PB AM C&O CRU Group CB IB PB AM C&O CRU Group CB IB PB AM C&O CRU Group
Bank Bank Bank
Revenues 1,313 3,097 2,178 637 (74) 7,152 81 7,233 1,325 2,354 2,167 519 43 6,407 (57) 6,350 1,226 1,893 1,963 599 (163) 5,518 (65) 5,453
DVA - IB Other / CRU - (15) - - - (15) 2 (13) - 46 - - - 46 24 70 - (23) - - - (23) (7) (30)
Sale of PB systems to
- - - - - - - - - - - - - - - - (16) - (88) - - (104) - (104)
TCS
Change in valuation of
- - - - - - - - - (10) - - - (10) - (10) - 1 - - - 1 - 1
an investment - FIC S&T
Sal. Oppenheim workout
- - 24 - - 24 - 24 - - 16 - - 16 - 16 - - 66 - - 66 - 66
– IPB
Revenues ex specific
1,313 3,112 2,153 637 (74) 7,142 79 7,222 1,325 2,318 2,151 519 43 6,355 (81) 6,275 1,242 1,915 1,986 599 (163) 5,579 (59) 5,520
items
Q1 2021 Q1 2020 Q4 2020
Core Core Core
CB IB PB AM C&O CRU Group CB IB PB AM C&O CRU Group CB IB PB AM C&O CRU Group
Bank Bank Bank
Noninterest expenses 1,104 1,605 1,805 405 156 5,076 498 5,574 1,097 1,475 1,886 374 112 4,944 695 5,638 1,003 1,255 1,775 399 223 4,655 373 5,027
Impairment of goodwill
and other intangible - - - - - - - - - - - 0 - 0 - 0 - - - - - - - -
assets
Litigation charges, net (0) 12 1 - 0 14 64 78 (0) 1 2 (0) 11 14 1 14 4 21 4 0 (79) (50) 9 (41)
Restructuring and
25 7 11 6 8 57 0 58 10 (2) 66 7 3 84 3 88 19 6 135 5 2 166 6 172
severance
Adjusted costs 1,080 1,586 1,792 400 147 5,005 434 5,439 1,087 1,476 1,817 367 98 4,845 691 5,536 980 1,227 1,636 394 300 4,538 358 4,896
Transformation
11 13 36 1 43 104 12 116 26 14 15 0 0 55 29 84 15 22 49 4 77 166 41 207
charges(1)
Adjusted costs ex
1,068 1,573 1,756 399 104 4,900 422 5,322 1,062 1,462 1,803 366 98 4,791 661 5,452 965 1,206 1,587 390 224 4,372 317 4,689
transformation charges
(1) Defined on slide 28 of the Q1 2021 Analyst presentation
Deutsche Bank 21
Investor RelationsAdjusted costs excluding transformation charges
In € m, unless stated otherwise
Q1 2021 Q1 2020 YoY Q4 2020 QoQ
Compensation and benefits 2,589 2,675 (3)% 2,404 8%
Adjusted costs excluding transformation
Information Technology 887 911 (3)% 895 (1)%
Professional service fees 206 220 (6)% 268 (23)%
Occupancy, furniture and equipment expenses 367 389 (6)% 398 (8)%
charges
Communication, data services, marketing 117 142 (17)% 142 (18)%
Other 585 612 (4)% 579 1%
Adjusted costs ex bank levies 4,751 4,948 (4)% 4,686 1%
Bank levies 571 503 13% 3 n.m.
Adjusted costs ex transformation charges 5,322 5,452 (2)% 4,689 14%
Compensation and benefits 2 - n.m. 2 (6)%
excluding transformation charges
Reconciliation adjusted costs
Information Technology 44 72 (39)% 69 (36)%
Professional services 7 3 110% 4 62%
to adjusted costs
Occupancy 62 8 n.m. 130 (52)%
Communication, data services, marketing 1 0 n.m. 1 121%
Other 0 1 (32)% 1 (52)%
Transformation charges 116 84 38% 207 (44)%
Adjusted costs 5,439 5,536 (2)% 4,896 11%
Note: Per definition of Adjusted costs, compensation and benefits excludes severance. For reported compensation and benefits (which includes severance) and for general and administrative
expenses (which includes IT costs, professional service fees, occupancy, furniture and equipment expenses, communication, data services and other), see the consolidated statement of
income in the Q1 2021 Financial Data Supplement
Deutsche Bank 22
Investor RelationsAdjusted profit (loss) before tax (PBT)
In € m
Q1 2021 Q1 2020
Transfor- Transfor-
Specific Goodwill Restructuring Specific Goodwill Restructuring
Reported PBT mation Adjusted PBT Reported PBT mation Adjusted PBT
revenue items impairments & severance revenue items impairments & severance
charges(1) charges(1)
CB 229 - 11 - 25 266 121 - 26 - 10 157
IB 1,490 15 13 - 7 1,526 637 (36) 14 - (2) 614
PB 274 (24) 36 - 11 297 143 (16) 15 - 66 207
AM 183 - 1 - 6 190 110 - 0 0 7 118
C&O (178) - 43 - 8 (127) (40) - 0 - 3 (37)
Core Bank 1,999 (9) 104 - 57 2,151 971 (52) 55 0 84 1,059
CRU (410) (2) 12 - 0 (400) (765) (24) 29 - 3 (756)
Group 1,589 (11) 116 - 58 1,752 206 (76) 84 0 88 303
Q4 2020
Transfor-
Specific Goodwill Restructuring
Reported PBT mation Adjusted PBT
revenue items impairments & severance
charges(1)
CB 151 16 15 - 19 200
IB 601 22 22 - 6 651
PB 15 22 49 - 135 222
AM 157 - 4 - 5 165
C&O (333) - 77 - 2 (254)
Core Bank 591 61 166 - 166 984
CRU (417) 7 41 - 6 (363)
Group 175 67 207 - 172 621
(1) Defined on slide 28 of the Q1 2021 Analyst presentation
Deutsche Bank 23
Investor RelationsTransformation-related effects
In € bn
2019 – 2019 – 2022
Q1 2021 expected % of total
cumulative cumulative 2019 –
Q1 2021 expenses expenses Q1 2021
Deferred tax
Deferred Tax Asset
asset valuation 2.8 - 2.8 2.9 97%
valuation adjustment
adjustment
Nonoperating
Goodwill impairment - 1.0 1.0 100%
costs(4)
Restructuring &
0.1 1.5 1.9 76%
Severance
Goodwill 1.0
impairment(1)
Real estate charges 0.1 0.4 0.5 79%
Transformation
Pre-tax Restructuring
0.7 0.0
charges(5)
& Severance(2)
items 0.1 Software impairment/
0.0 1.2 1.4 87%
0.1 accelerated amortization
Real estate charges 0.7 0.4
Software
impairment(3) 1.0 0.2 Other 0.0 0.2 0.4 38%
0.2 0.2
0.2
Other 0.0 0.1 0.2 0.1 0.1
2019 2020 2021 2022
Total transformation-related effects 87%
Note: Estimated restructuring and severance, impairments, deferred tax valuation adjustments and other transformation charges in future periods are preliminary and subject to change. Non-
tax items are shown on a pre-tax basis. Defined on slide 28 of the Q1 2021 Analyst presentation
(1) Non tax-deductible
(2) Excludes H1 2019 Restructuring & Severance of € 0.1bn, prior to the strategic announcement on 7 Jul 2019
(3) Includes accelerated software amortization
(4) Excluded from adjusted costs. Defined on slide 28 of the Q1 2021 Analyst presentation
(5) Included in adjusted costs
Deutsche Bank 24
Investor RelationsStrong credit quality versus peers
Q1 2021
Strong correlation with share of consumer credit despite strong
Geographical composition of loan book(1)
provisioning by US peers
4.0%
Latin
Loan Loss Reserves - % of total loans
Asia America
Pacific Others
1% 3.0%
8%
1%
North
America
17%
2.0%
52% Germany
1.0%
21%
Europe
ex Germany 0.0%
0% 5% 10% 15% 20% 25% 30%
Unsecured Consumer Lending(2) - % of total loans
= Q1’21 results;
(1) Loans at amortized cost. Data as of 31 December 2020
(2) Unsecured retail loans defined as retail loans excluding mortgages and excluding loans collateralized by securities
Remainder is Q4’20 data
Deutsche Bank 25
Investor RelationsSustainability at Deutsche Bank
Our key focus areas Recent achievements
– Issuance of second green bond raised $ 800mn
– € 25bn in financing and investment achieved for Q1 2021 after € 46bn in all of 2020
Sustainable
– Maintained leading position in the euro-denominated sustainable bond market (ranked #3 by Dealogic)
Finance – Inaugural Diversity & Inclusion Bond, raising $ 750mn with a senior non-preferred issuance in New York
– Launched green deposits programme – a new cash management solution for our clients
– Joined Partnership for Carbon Accounting Financials (PCAF) and aligned the internal methodology for the
Policies & accounting of portfolio emissions to the PCAF standard
Commitments – Joined Net Zero Banking Alliance (NZBA)(1) and committed to achieve global net zero by 2050
– Published Sustainable Finance Disclosure Regulation (SFDR) statements prior to March deadline
Own – Continued reduction in energy over 2019 baseline and working towards 80% renewable electricity target by year
Operations end 2021
– Hosted dbAccess ESG Conference in March 2021
Thought – Launched new Deutsche Bank Research offering regarding sustainability for ESG investors
Leadership – Released CIO special report on ESG in Asia for our international private bank clients as part of a series of dedicated
ESG publications
We support all the major international standards and guidelines:
Business and Human Rights Partnership for Carbon
Core Labor Standards
Responsible Banking Paris Pledge for EU Transparency Global Reporting Accounting Financials
of the International
Sustainable Development Goals Action Register Initiatives
Labor Organization
International Bill of Rights
(1) Joined in April 2021
Deutsche Bank 26
Investor RelationsWe like to get in touch with you Investor Relations contact details Deutsche Bank AG Investor Relations Team Tel: +49.69.910-8000 db.ir@db.com Links to key investor presentations: Q1 2021 results presentation (28 April 2021): https://www.db.com/ir/en/download/Deutsche_Bank_Q1_2021_final.pdf Investor Deep Dive (09 December 2020) https://www.db.com/ir/en/other-presentations-and-events.htm Deutsche Bank 27 Investor Relations
Cautionary statements 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 12 March 2021 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 also contains 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 Q1 2021 Financial Data Supplement, which is accompanying this presentation and available at www.db.com/ir. Results are prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and endorsed by the European Union (EU), including, from 2020, application of portfolio fair value hedge accounting for non-maturing deposits and fixed rate mortgages with pre-payment options (the “EU carve-out”). Fair value hedge accounting under the EU carve-out is employed to minimize the accounting exposure to both positive and negative moves in interest rates in each tenor bucket thereby reducing the volatility of reported revenue from Treasury activities. For the three-month period ended March 31, 2021, application of the EU carve out had a negative impact of 316 million euros on profit before taxes and of 207 million euros on profit. For the same time period in 2020 the application of the EU carve out had a positive impact of 132 million euros on profit before taxes and of 70 million euros on profit post taxes. The Group’s regulatory capital and ratios thereof are also reported on the basis of the EU carve out version of IAS 39. The impact on profit also impacts the calculation of the CET1 capital ratio and had a negative impact of approx. 6 basis points as of March 31, 2021 and a positive impact of about two basis points as of March 31, 2020. In any given period, the net effect of the EU carve- out can be positive or negative, depending on the fair market value changes in the positions being hedged and the hedging instruments. Deutsche Bank 28 Investor Relations
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