Deutsche Bank AG Strategy 2015 : Road To Operational .

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Deutsche BankDeutsche Bank AGStrategy 2015 : Road to operational excellenceHenry Ritchotte, Chief Operating Officer,Member of the Management BoardGoldman Sachs European Financials ConferenceBrussels, 12 June 2013

Agenda1Where we stand on Strategy 2015 2Update on Operational Excellence ProgramDeutsche BankHenry RitchotteGoldman Sachs European Financials Conference, 12 June 2013financial transparency.1

Strategy 2015 : Progress against our published goalsWe aspire to be the leading client-centricclientglobal universal bankCapitalCostsCompetenciesClientsCultureDeutsche BankHenry RitchotteGoldman Sachs European Financials Conference, 12 June 2013financial transparency.2

Capital: We outperformed our ambitious organic capitaltargets thanks to significant asset sales and hedging.Two quarters of outperformanceSignificant RWA reductionPro-forma Basel 3 CT 1 ratio (fully loaded), in %, at period endPro-forma Basel 3 RWA equivalent(1) relief,1 Jul 2012 to 31 Mar 2013, 100% EUR 103bn 10.07.27.88.58.8Improved process &data discipline(2)Asset sale/hedging17% 6.0Non-coreBank 42%Roll out ofadvanced 13%modelsTarget OverachievedDec 2011(1)(2)Dec 2012Target OverachievedTargetMar 2013Mar 2015VaR multiplierreduction11%Core Bank17%RWA plus equivalent of items currently deducted 50/50 from Tier 1/Tier 2 capital whereby the Tier 1 deduction amount is scaledscale at 10%Previously referred to as “Operating model improvement”Deutsche BankHenry RitchotteGoldman Sachs European Financials Conference, 12 June 2013financial transparency.3

Capital: and closed the capital gap to our peersSet of announced capital measuresIssued 90 m new sharesraising EUR 2.96 bnEx-rightsissueDB has closed the capital gap to its peers(1)Pro-forma Basel 3 CT 1 ratio (fully loaded), as of 31 Mar 2013,in %10.1Strong investor demand andrapid book building10.09.8Positive reactions across allstakeholders9.6(2)9.5Up to EUR 2.0 bn eligibleadditional LT1/LT2 capitalAdditionalsubordinated capital9.39.0Addressing recovery andresolution planning8.98.7 50% already achieved withfirst-ever benchmarkcallable LT2 issue8.68.4(1)Including Morgan Stanley, Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, Credit Suisse, UBS, BNP Paribas, Société Générale, Barclays(2)Pro-forma including EUR 2.9 bn net impact of ex-rights issueSource: Company dataDeutsche BankHenry RitchotteGoldman Sachs European Financials Conference, 12 June 2013financial transparency.4

Costs: Operational Excellence program is on trackExamples of successOn track to deliver 2013 targetIn EUR bn4.52014target2013target2013target0.7Deutsche Bank 900 applications eliminated 20 million retail clients migrated to newIT platform (“Magellan“)OrganizationalstreamliningProgress in recalibrating CB&S andintegrating AWM: 90% of associatedFTE reductions in US, UK and AsiaSourcingexcellenceNumber of vendors reduced by 5,000 120 savings initiatives developedin PBCFront-toto-backproductivityIntegrated retail middle-office platformwith 9,000 FTE establishedFootprintrationalizationTransfer of 1,500 FTE from New York,London, Hong Kong and Singaporeinitiated (overall target: 8,000 FTE)4.02014target1Q20132H2012IT st-toAchieveCumulativesavingsHenry RitchotteGoldman Sachs European Financials Conference, 12 June 2013financial transparency.5

Competencies: Our franchise is performing well.CB&S: Best performing European bank1Q13 vs. 1Q12, in %1Q2013 S&T revenues(1),in EUR bn(4)%(3)%(9)%GTB: Good 1Q2013 performanceIBITIn EUR mRevenuesIn EUR m(3)% (13)% (19)% (2)% (28)% 2.62.11.4JPM CitiNote:(1)(2)(3)BAR GSBoACSMS UBS1Q20121Q2013Figures may not add up due to roundingAdjusted to compare figures on a like-for-like basis with Deutsche BankBest year-on-year revenue development versus key peersIBIT impacted by an increase in loan loss provisions due to a single client credit eventSource: Company data, per latest disclosure, including 10-Q publicationsDeutsche BankHenry RitchotteGoldman Sachs European Financials Conference, 12 June 2013financial transparency.6

Competencies: .across all our core businessesAWM: Positive NNM and increased assetsPBC: Best quarter since consolidationNNM(1), in EUR bnAdjusted IBIT(2), In EUR mInvested assets, in EUR Q2012(1)(2)4Q1Q35020131Q 2Q3Q4Q 1Q2Q20113Q20124Q1Q2013Net new moneyAdjusted for Cost-to-Achieve resulting from Postbank integration and OpEx,, PPA, impact resulting from Greek government bonds, and Hua Xia; seereconciliation in appendixDeutsche BankHenry RitchotteGoldman Sachs European Financials Conference, 12 June 2013financial transparency.7

Clients: Client-centricity at workIn our home market.and globallyExample AppleCB&SGTBInfrastructureIntegrated commercial banking coverage: 11,500 small-/mid-sized corporate clients (Mittelstand) transferred fromCB&S and GTB to PBCDeutsche BankHenry RitchotteGoldman Sachs European Financials Conference, 12 June 2013financial transparency.8

Culture: Working on cultural changeSelected examplesVariable comp has decreased significantlyIndependent compensation review panel“Red flag” monitoringsystemVariable compensation in % of revenues(1)22%20%(13)ppt19%17%15%Transactions(2) reviewedby Group SustainabilityCompliance and riskculture education11%9%# of compliance and risk modules 1120122010201120122006200720082009201020112012% of staff with overdue training(1)(2)Variable remuneration awarded including deferrals. No adjustment made for pay mix change in 2010 (EUR 742 m)Note: Analysis based on transactions in three exemplary high risk sectors: Oil & Gas, Agriculture & Forestry, Metals & Mining.Mining Figures do not include flow businesswhich can also be subject to a mandatory Group Sustainability reviewDeutsche BankHenry RitchotteGoldman Sachs European Financials Conference, 12 June 2013financial transparency.9

Agenda1Where we stand on Strategy 2015 2Update on Operational Excellence ProgramDeutsche BankHenry RitchotteGoldman Sachs European Financials Conference, 12 June 2013financial transparency.10

OpEx Program prepares DB for the "new normal"“New normal” – lasting market characteristicsLow growth, further potential for shocksMacroeconomicchallengesContinued dependence on policy stimulusSignificant, prolonged deleveraging aheadKey OpEx objectivesQualityImproving services to clients and businessCustomization rate 20%ControlRobust and effective centralized controlsChanging global sZero tolerance for control breaksUrbanization and financial deepening inemerging marketsTechnological advancementsFlexibilityStrategic flexibility through reduced fixed costbase 40% of cost base flexibleFractured relationship with societyUnprecedentedpressure onbanksRestrictive regulatory landscapeTransformation of competitive landscapeDeutsche BankHenry RitchotteGoldman Sachs European Financials Conference, 12 June 2013CostBecome world class cost player 65% cost income ratiofinancial transparency.11

Program savings and CtA on trackSavings and CtA ramp-up, in EUR bnAchievements FY2012/1Q2013Savings (cumulative)ActualsProgram saving and CtA targetsTargets1.6Infrastructure savings (cumulative)Business savings (cumulative)4.5(1)CtA targets (incremental)2.91.60.4 0.10.3(0.6)20120.41.21.80.40.40.6— Infra0.2 0.10.20.4— Business0.20.30.41.2Thereof0.92.02.7CtA (0.5)(0.6)FY2012(0.2)(1.7)1QFY20131Q demonstrates continued delivery(1)Reallocation of EUR 0.1 bn from Business to Infrastructure compared to announced targets at Investor Day (12 September 2012)Deutsche BankHenry RitchotteGoldman Sachs European Financials Conference, 12 June 2013financial transparency.12

OpEx target to deliver cost savings and sustainablerevenue growthReported cost/income ratioNet revenues, in EUR bn9.276%8.08.683%81%9.4 2%7.9135%71%6.16.0Adjusted cost base(1), in EUR bn6.46.16.0-6%1Q2Q3Q4Q20121Q2013Overall cost/income ratio of 65% targeted from 2015(1)Non-interest expenses excl. CtA,, litigation, policyholder benefits and claims, other severances and other non-interestnonexpensesDeutsche BankHenry RitchotteGoldman Sachs European Financials Conference, 12 June 2013financial transparency.13

Goals for structural change clearly defined along 5 leversStructural leverCommittedsavings(1)(EUR bn)Aspiration level OpEx 2015ExpectedCtA(EUR bn)IT platform1renewalCustomization rate 20%40% reduction in apps and systemsVirtualized and integrated platforms0.81.52 OrganizationalstreamliningSpan of control: 8Management layers: 8Streamlined committee structures1.81.43 SourcingexcellenceCentral procurement and single sourcing for all spend 80%80% of spend with 500 vendors consolidatedVendor base reduced by 25%0.60.14 Front-to-backproductivityFront-to-backback view and ownership on processesHighly automated processesCost per trade in CB&S reduced by 20%1.00.55 Footprintrationalization 40% of infrastructure staff in prime locationsMinimum service centers headcount 750 FTEReduce workspace per FTE by 15%0.30.44.54.0Total(1)Reallocation of EUR 0.1 bn from organizational streamlining to front-to-backback productivity compared toannounced targets at Investor Day (12 September 2012)Deutsche BankHenry RitchotteGoldman Sachs European Financials Conference, 12 June 2013financial transparency.14

1 IT platform renewalMajor IT platformsCB&SAchievements to dateGTBAWMPBCPlatform program kicked off in 2012 with 2,650 applications in scope forstandardizationdbCoral900 applications (16%) eliminated,additional 1,300 flagged for decommissioning (05/13, ongoing)ReferenceDataShift of 20 m clients to new Magellanplatform; further migrations plannedEnterpriseServicesGIRO and SPAR Postbank SAP systemsmoved to standardized x86 hardwareReduction of customization rate to 20%and of applications and systems by 40%Migration of applications onto highlystandardized and virtualized platformsDeutsche BankHenry RitchotteGoldman Sachs European Financials Conference, 12 June 2013financial transparency.15

2 Organizational streamliningShared services GTBAchievements to dateAWMPBCRe-alignment of AWM organization forGermany and repositioning of Sal.Oppenheim started in late GTBAWMPBCEfficient front-to-backprocessesEstablishment of 8x8 organizational designAWM buy-side activities consolidatedand 700 investment professionalsbrought togetherIntegrated change organization withinGlobal Technology Office operationalsince 1Q2013 3,300 FTE bank-wide identified andconfirmed for consolidation into commonfunctions, 1,200 FTE already movedConsolidation of functional activities andstreamlining of committee structures(1)business specific shared service center, Centers of Excellence, etc.Target model might additionally include multi-businessDeutsche BankHenry RitchotteGoldman Sachs European Financials Conference, 12 June 2013financial transparency.16

3 Sourcing excellenceShare of non-compensation costAchievements to date— IT hardware, softwareand services 55%Comp— Professional services— Recruiting and templabor— Financial services 45%Non compTotal number of vendors reduced by 5,100 (8%) between 1Q2012 and1Q2013EUR 60 m savings realized to date viasourcing synergies and standardizationof processes and tools(1)— Office Operations— Travel, entertainmentand eventsPhone and conferencing servicesconsolidatedTesting vendors across GlobalTechnology Office consolidated2012 cost baseProcurement function consolidated andcentralized with reduction of vendors by 25%and single sourcing for all spend categories(1)Incremental savings not counted against OpEx targetsDeutsche BankHenry RitchotteGoldman Sachs European Financials Conference, 12 June 2013financial transparency.17

4 Front-to-back productivityProcess landscapeAchievements to dateCurrent modelManycustomprocessesStill oftenmanual and notoptimizedCoverage function increasing proximityby transferring 11,000 mid-sizedcorporate clients in Germany from CB&Sto MittelstandsbankTarget modelFewerMiddle-office Operations PlatformHolding (PBC Banking Services) for theretail bank established with 9,000 FTELeanerStraightthroughIncrease of automation and establishment ofstandardizationImplementation of lean processesDeutsche BankHenry RitchotteGoldman Sachs European Financials Conference, 12 June 2013financial transparency.18

5 Footprint rationalizationCurrent location footprintAchievements to dateShare of infrastructureheadcount per locationInfrastructure andlower cost hubsConsolidatein hubsOtherinfrastructurelocationsMove to lowercost locationsBusiness hubsInfrastructure headcountShare of infrastructure staff in primelocations reduced from 61% (3Q 2012)to 57% (1Q 2013)Number of legal entities reduced by 100since end of 2012, savings of EUR 18 mTransfer of 1,500 roles out of primelocations New York, London, Hong Kongand Singapore initiated in 1Q 2013Increased utilization and selectedcomplementation of existing locations withan average of infrastructure staff in primelocations of 40%Right sizing of real estate footprintDeutsche BankHenry RitchotteGoldman Sachs European Financials Conference, 12 June 2013financial transparency.19

We will turn Operational Excellence from a programto a permanent way of life20122015Long termCIR improvementOperational ExcellenceinstitutionalizedCost base reductionCIR constantly 65%Further strategic investments e.g., in globallyintegrated platformsEUR 4.5 bn structural costreductions 40% of cost base flexibleCustomization rate 20%Investment (CtA) efficiency of0.9xOptimal balance of quality,flexibility, control and costFull re-engineeringengineering of operating model to accommodatechanges in environment,regulation and client behaviorCreation of a mindset tocontinuously improve qualityand efficiencyAccelerated payback ofinvestments – run rate in2015Create sense of urgency andembed cultural changethroughout the organizationCurrent focus of OpEx – acceleration, deliveryand sustainabilityDeutsche BankHenry RitchotteGoldman Sachs European Financials Conference, 12 June 2013Ongoing improvement processesto focus on long-term “newnormal” for Deutsche Bankfinancial transparency.20

Cross-silosilo integration and culture change key to mitigateoperational risks and secure success of OpEx ProgramChallenges to ensure impact andbusiness continuity during implementationInvolve all stakeholders, get full managementcommitment, provide sufficient resources andmake progress transparentAddressed throughSystematic and strong communication programleveraging various channels as core effort of OpExDedicated program lead and sufficient resources fromall divisionsBreak down divisional silos to strengthenteamwork across functions and improveoperational discipline sustainablyImplementation of cross-divisional initiatives –supporting institutionalized exchange and mutuallearningEstablishment of a new standardized processdiscipline and link to performance managementDeliver on the promise of client-centricity andenhance integrity of client relationshipsDeutsche BankCreation of awareness for client understanding anddelivering high quality serviceHenry RitchotteGoldman Sachs European Financials Conference, 12 June 2013financial transparency.21

Extensive communications and dedicated change teamsupport program and ensure cultural change of DBManagement presentationsOne-on-one meetingsRegular debriefing of board meetingsCalls with senior al/divisional townhallsManagement off-sitessitesWritten communicationForum magazineDB Intranet/OpEx homepage Personalized communicationLetters/EmailsVideo messagesMultimediaTrailer film – to be published via DB IntranetVideo interviewsmydb – interactive platform for employeesDeutsche BankHenry RitchotteGoldman Sachs European Financials Conference, 12 June 2013financial transparency.Dedicated centraland regionalChange teamsToolbox of keychangemanagementinterventionsClear process forchangeimplementationClose dailycoordination withCommunicationsto ensureconcerted action22

Key takeaways of presentationThrough strong organic capital formation and our equity raise, we closed thecapital gap to our peersWe have delivered strong first quarter results with good operating performancein the core businesses and progress on cost reductionOpEx has been built as an integrated bank-widebankprogram to adjust DB tothe “new normal”” along 4 major objectives: Quality, Control, Flexibility, and CostOpEx is fully on track, delivers against its financial targets, and has shown firststructural improvement effects with respect to 5 key leversWe are on track to deliver our Strategy 2015 aspirationsDeutsche BankHenry RitchotteGoldman Sachs European Financials Conference, 12 June 2013financial transparency.23

Deutsche BankAppendix24

Compensation and benefitsReconciliation of reported expenses andadjusted cost baseIn EUR bnGeneral and administrativeexpensesOther noninterest expenses(1)10.63.27.03.63.63.33.43.33.43.23.2 0.20.21H2012annualised:EUR 25.1 bn7.06.61Q6.65.33.52.12.80.3 12Compensation ratio, in %Adjusted cost 3551,787221132Policyholder benefits and claims149(4)161108191Other (1)(2)(3)(4)3.6Figures may not add up due to rounding differencesIncl. policyholder benefits and claims, restructuring costs, impairment of goodwill and other intangible assets where applicableIncludes CtA related to Postbank and OpExFigures differ to previously reported numbers due to methodology change in 1Q2013Includes other divisional specific cost one-offsoffs (including EUR 280 m charges related to commercial banking activities in the Netherlands,Netherlands EUR 90 m ITwrite-down in AWM and impairment of goodwill and intangibles of EUR 1,876 m))Deutsche BankHenry RitchotteGoldman Sachs European Financials Conference, 12 June 2013financial transparency.25

Reconciliation of IBIT Private & Business Clients (PBC)(In EUR m, BC(1)(2)Reported IBITCost-to-achievethereof cost-to-achieve related to OpExthereof costs related to Postbank integrationPPA(2)Impact from Greek government bondsHua XiaAdjusted IBITReported IBITCost-to-achievethereof cost-to-achieve related to OpExthereof costs related to Postbank integrationPPA(2)Impact from Greek government bondsHua XiaAdjusted IBITReported IBITCost-to-achievethereof cost-to-achieve related to OpExthereof costs related to Postbank integrationPPA(2)Impact from Greek government bondsHua XiaAdjusted IBITReported IBITCost-to-achievethereof cost-to-achieve related to OpExthereof costs related to Postbank integrationPPA(2)Impact from Greek government bondsHua XiaAdjusted 5335495832,256649norisbank reported under Consumer Banking GermanyNet regular FVA amortizationDeutsche BankHenry RitchotteGoldman Sachs European Financials Conference, 12 June 2013financial transparency.26

Cautionary statementsThis presentation contains forward-looking statements. Forward-lookingForwardstatements are stat

Costs: Operational Excellence program is on track On track to deliver 2013 target 1Q2013 2H2012 0,4 1,1 4.5 4.0 0.2 2014 target 2013 target Cost-to-Achieve Cumulative savings 1Q2013 2H2012 0.7 0.6 2013 target 2014 target In EUR bn Examples of success 0.5 0.4 0.2 Sourcing excellence Organizational streamlining Footprint rationalization Front-to .

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