Deutsche Bank 1Q2004 Results – Analyst Conference Call
Two countries – one mission Transatlantic Outreach Program and Deutsche Bank December 2006 Hanns Michael Hölz Managing Director [email_address]
<ul><li>“ Let us think of education as the means of developing our greatest abilities, because in each of us there is a private hope and dream, which, fulfilled, can be translated into benefit for everyone.” </li></ul><ul><li>John F. Kennedy </li></ul>
Let us tackle the great challenges of the world – together
Health Economic growth Widespread poverty Climate change Education
Climate change <ul><li>Every day, 100 to 150 animal and plant species die out </li></ul><ul><li>Every day, 115 square miles are devastated </li></ul><ul><li>Every day, 86 million tons of fertile soil are eroded </li></ul><ul><li>Every day, 100 million tons of green house gas are released </li></ul>Floodwaters after Katrina
Widespread poverty <ul><li>More than half of the world ’ s population live on less than 2 dollars a day </li></ul>
Economic growth <ul><li>Until 2020, world economy will grow by about 4 % per year </li></ul><ul><li>Asian economy is expected to grow by about 6.5 to 6.9 % per year </li></ul>
Health <ul><li>Every day, 1,400 children die from AIDS </li></ul>
Education <ul><li>Worldwide, more than 130 million children do not receive sufficient education </li></ul>
Let us tackle the great challenges of the world – together <ul><li>No man, no woman, no city, no country, no continent could tackle these challenges all by themselves. </li></ul>
Our common basis: We share the same values, goals, and the same future Democracy Equality Independence Human Rights Solidarity Self- fulfilment Justice Free enterprise Freedom Environmental protection Charity Sustainability Civility
<ul><li>Appreciation , trust and true knowledge of </li></ul><ul><li>one another – these ingredients grant success </li></ul><ul><li>in the mission to improve the world. </li></ul><ul><li>To achieve such a relationship, we must meet each other, </li></ul><ul><li>talk to each other. </li></ul><ul><li>understand each other. </li></ul><ul><li>To facilitate such processes, the idea of </li></ul><ul><li>TOP was born! </li></ul><ul><li>An initiative of </li></ul><ul><li>Auswärtiges Amt (Department of State, GER) </li></ul><ul><li>Goethe-Institute </li></ul><ul><li>Deutsche Bank </li></ul><ul><li>Robert Bosch Stiftung (Foundation) </li></ul>TOP Transatlantic Outreach Program crosses boundaries
<ul><li>Where do we receive our values? </li></ul><ul><li>How do we get to know the world? </li></ul><ul><li>Who influences our point of view? </li></ul><ul><li>Family </li></ul><ul><li>School </li></ul><ul><li>College, University or apprenticeship </li></ul><ul><li>TOP targets social studies teachers and educators </li></ul><ul><li>since we believe that sharing knowledge through edu- </li></ul><ul><li>cation and learning is an effective way of promoting </li></ul><ul><li>tolerance and erasing prejudice. </li></ul><ul><li>And you are the most effective multipliers! </li></ul>What is TOP?
TOP is your link to Germany <ul><li>The Transatlantic Outreach Program is </li></ul><ul><li>offering all-expense-paid study and travel tours to Germany for social studies educators. </li></ul><ul><li>promoting in-service teacher training . </li></ul><ul><li>providing up-to-date, U.S. educator-designed, instructional kits about modern Germany to K-12 US and Canadian social studies educators. </li></ul>Instructional kits
... and nothing beats first hand experience Joined by TOP Director, Stefan Brunner, and Hanns-Michael Hoelz of Deutsche Bank, our TOP group welcomed U.S. President George W. Bush and German Chancellor Angela Merkel to the Hanseatic city of Stralsund.
Deutsche Bank supports and fosters TOP because ... <ul><li>Deutsche Bank considers social involvement a responsibility , particularly in communities where we are present. </li></ul><ul><li>With more than 10,000 employees in New York alone, we have many strong ties with the USA. </li></ul><ul><li>Staff on both sides has therefore learned to bridge the Atlantic and cultural gaps . </li></ul><ul><li>With this in mind we co-founded the Transatlantic Outreach Program . For us, promotion of understanding and tolerance is not only essential to future business relations, but also to all other relations between our two countries. </li></ul><ul><li>The Transatlantic Outreach Program and its social studies teachers are multiplying these efforts . </li></ul>
Deutsche Bank – identity and mission <ul><li>Our identity </li></ul><ul><li>Leading global investment bank with strong and profitable private clients franchise. </li></ul><ul><li>Our mission </li></ul><ul><li>We compete to be the leading global provider of financial solutions for demanding clients, creating exceptional value for our shareholders and people. </li></ul>
More than 130 years in business <ul><li>Deutsche Bank follows a long-standing tradition, which goes back to its foundation in 1870, to promote and facilitate trade relations between Germany , other European countries and overseas markets . </li></ul><ul><li>Since then, its status as the largest private-sector bank in the German home market and an internationally recognized financial services provider has put it in the public limelight. </li></ul>
Global reach - key driver for success Breakdown of employees by regions, December 2005 63,400 employees worldwide, DB operates in 73 countries Germany: 26,336 (41.5%) Japan: 1,002 (1.6%) Other Asia: 5,184 (8.2%) Africa: 162 (0.3%) Continental Europe: 11,748 (18.5%) United Kingdom: 6,534 (10.3%) North America: 11,134 (17.6%) South America: 345 (0.5%) Australia/NZ: 983 (1.5%)
Sustainability – factor of success Economics, ecology and social responsibility at Deutsche Bank <ul><li>We act sustainably: </li></ul><ul><li>The Sustainability Principle is integrated in all our business processes via policies and target definitions. </li></ul><ul><li>Our Sustainability Management System is certified according to ISO 14001. </li></ul><ul><li>We develop sustainable products , like financing projects for the promotion of renewable energies and financial assets that are invested according to the Sustainability Principle. </li></ul><ul><li>We are active in international partnerships , like the UNEP Finance Initiative, UN Global Compact and the Global Reporting Initiative. </li></ul><ul><li>We support sustainability projects , like microfinancing in developing countries and Peace Parks in Africa. </li></ul>The Sustainability Principle: In the long run, success will only be possible when business, environmental an social responsibilities are all taken into account.
Global responsibility as an Corporate Citizen <ul><li>The Deutsche Bank assumes responsibility for the community . </li></ul><ul><li>Our engagement is basically covered by our staff with different cultural backgrounds, ideas and expectations . </li></ul><ul><li>Based on our values trust, teamwork, performance and i nnovation, we realize various projects e.g. in the fields of education, music, art and sustainability. </li></ul><ul><li>We focus on sustainability, follow the idea „ Help to help oneself“ and effectively encourage and advance the opportunities of young persons. </li></ul>
CSR/Sustainability – dedication in many areas CSR/Sustainability <ul><li>Management </li></ul><ul><li>Day-to-day business </li></ul><ul><li>International Networks </li></ul><ul><li>Stakeholder Dialogue </li></ul><ul><li>Climate Change </li></ul><ul><li>Community Development </li></ul><ul><li>CSR Activities </li></ul><ul><li>Foundations’ Network </li></ul><ul><li>Volunteering </li></ul>Business Philanthropy
CSR/Sustainability – Licence to operate Social recognition Creating value for all our stakeholders Building confidence Minimizing risk Long-term growth Innovations New market areas Licence to operate
Deutsche Bank’s commitment to the UN Global Compact
Global governance – our partnerships Member since 1998 Bellagio Forum for Sustainable Development International network of foundations, NGOs, media institutions and corporations to promote and develop sustainability projects, founded in 1993 Member since 2002 Transatlantic Outreach Programme (TOP) Since 2002, Initiative of German Department of State, Goethe-Institute, Deutsche Bank and Robert Bosch Foundation Member of Board of Directors Involvement as part of Deutsche Bank’s governance Global Reporting Initiative Multi-Stakeholder-Initiative conceived in 1997 Promotion of reporting on economic, ecological, and social performance of organizations Founding member Member of the steering committee UNEP FI Conceived at Rio Earth Summit Specialist working groups Growth from 1992-2004: from 6 to 231 banks Original signatory Member of Kofi Annan’s Advisory Council 2000-2004 UN Global Compact UN initiated code of conduct for corporates: Principles regarding human rights, labour, environment and anti-corruption The role of Deutsche Bank Organization/Institution Member since 1998 World Business Council for Sustainable Development Global network of leading international companies out of several industries
Our commitment to stopping climate change <ul><li>Starting point </li></ul><ul><li>Climate change causes enormous economic damage, which can also effect our stakeholders. Drastically lowering greenhouse gas emissions is in the economic interest of Deutsche Bank . </li></ul><ul><li>Our counter-strategy </li></ul><ul><li>Avoiding greenhouse gas emissions </li></ul><ul><li>Promotion of renewable energies </li></ul><ul><li>Raising public awareness of the topic of climate change </li></ul><ul><li>Neutralizing unavoidable greenhouse gas emissions </li></ul>
Microcredits to fight poverty and to provide sufficient education <ul><li>Microcredits in developing countries have proven to be a solution-oriented means to put families in a position to provide for themselves , thus break out of the cycle of poverty. </li></ul><ul><li>The Deutsche Bank Microcredit Development Fund and the Global Commercial Microfinance Consortium support the idea of microfinance and make an important contribution to the development of stable economic structures. </li></ul><ul><li>Low interest loans are made to local microfinance institutions who use the money as collateral receiving at least double the amount in local currency. </li></ul><ul><li>Microcredits are granted to founders of small businesses who use them to build a small business, acquire better equipment, or to be able to operate a retail trade. </li></ul>Candida Gutiérrez from Nicaragua started a street sale business with the help of a microcredit, worth about US $ 115. Today, ten years later, she applies for a loan of more than US $ 5.000,00, in order to build a spa in Managua.
Microcredits <ul><li>Deutsche Bank Microcredit </li></ul><ul><li>Development Fund (DBMDF) </li></ul><ul><li>Established in 1997 </li></ul><ul><li>Managed by Deutsche Bank Americas Foundation </li></ul><ul><li>Offers low-interest loans to Microfinance institutions (MFIs) around the world </li></ul><ul><li>Since 1997 the DBMDF has invested USD 4,2 million in loans to 40 MFIs in 25 countries with a cumulative impact of nearly USD 55 million </li></ul><ul><li>Global Commercial Microfinance Consortium </li></ul><ul><li>Debt Fund launched in 2005 </li></ul><ul><li>Innovative public-private partnership </li></ul><ul><li>Manager: Deutsche Bank Community Development Finance Group </li></ul><ul><li>Institutional partners: banks, pension funds, insurance companies, mutual funds, development agencies </li></ul><ul><li>Total capitalization of USD 75 million </li></ul><ul><li>Initial portfolio of financings, totaling USD 30 million </li></ul>Our aim is to helping Microfinance programs reach scale and long-term durability as sustainable institutions.
Win-win situations for all stakeholders Shareholders <ul><li>Stock exchanges, rating agencies and research institutes reward sustainable trade. That contributes to the business success of Deutsche Bank. </li></ul>Customers <ul><li>Our customers benefit from product innovations and services which arise from sustainable business. </li></ul>Staff <ul><li>Our colleagues are the basis for sustainable trade, which also guarantees them an equitable working environment . </li></ul>Society <ul><li>Active participation and problem-solving oriented dialogues in international partnerships are the expression of our global responsibility as a “Corporate Citizen“. </li></ul>
Cautionary statement regarding forward-looking statements and non-U.S. GAAP financial measures <ul><li>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. </li></ul><ul><li>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 management agenda, 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 23 March 2006 on pages 7 through 13 under the heading "Risk Factors." Copies of this document are readily available upon request or can be downloaded from www.deutsche-bank.com/ir . </li></ul><ul><li>This presentation contains non-U.S. GAAP financial measures. For a reconciliation to directly comparable figures reported under U.S. GAAP refer to the 1Q2006 Financial Data Supplement, which is accompanying this presentation and available on our Investor Relations website at www.deutsche-bank.com/ir . </li></ul>