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Deutsche Banks PCAM:New business model &
strategic outlook
Hermann-Josef Lamberti, Member of the BoardMerrill Lynch European Banking & Insurance ConferenceLondon, October 10, 2001
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Lamberti: Eurpean Banking & Insurance Conference, Merrill Lynch 10.10.2001 2
33 Deutsc he Bank 24
Agenda
11
22Private Weal t h Management / Pr ivate Bank ing
Evolut ion of PCAM
44 Asset Management : The Scudder ac qu is i t ion
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Lamberti: Eurpean Banking & Insurance Conference, Merrill Lynch 10.10.2001 3
Deutsche Bank connectivity:Linking capital markets with investors
Corporate and Invest -
ment Bank (CIB)
Pr ivate Cl ients and Asset
Managem ent (PCAM)
Trans-Trans-
formationformationCapitalCapital
MarketsMarketsOrigination InvestorsInvestors
Placement /Access
moneyshopPrivate Banking
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Lamberti: Eurpean Banking & Insurance Conference, Merrill Lynch 10.10.2001 4
Ackermann (Chairman) Breuer (Chairman)
Ackermann Fitschen LambertiPhilipp
Sales andTrading
CorporateFinance
TransactionBanking
CIB Global Technology PCAM Global Technology
DB Services
Corporate Investments
Breuer (Chairman)
Corporate Center
Brsig
(CFO)
Fischer
(CRO / COO)
Breuer
(Spokesman)
von Heydebreck
(CAO)
Corporate and Investment Bank
Board
Lamberti
(CIO)
Corporate Banking and SecuritiesClientGroup
ProductGroup
Private Clients and Asset ManagementBreuer (Chairman)
Deutsche Bank is organized in two groups: CIB and PCAM
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Lamberti: Eurpean Banking & Insurance Conference, Merrill Lynch 10.10.2001 5
PCAM: From silo structure to an integratedprocessdriven model
AssetManagement
PrivateBanking
PersonalBanking
Produc-tion
Distribu-
tion
Infra-
structure
n Investmentprocess
n Productdevelopment
n Third-partysourcing
n Productmanage-ment
Production Distribution
n Customermanagementn UHNWn Affluent/HNW
n Retail/massaffluent
n Joint CRM
n Service
centersn Call
centersn IT/Ope-
rationsn Credit
process
Infrastructure
n Corporate
Centerlinks
PCAMPCAM
PCAMPCAM
Private Banking
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Lamberti: Eurpean Banking & Insurance Conference, Merrill Lynch 10.10.2001 6
Private Banking
Private Wealth Management
Segmentdriven approach: The new proposition
Brand/identifier
UHNWUHNW
RetailRetail//
massmass
affluentaffluent
AffluentAffluent//
HNWHNW
"Best wealth management" superior individual solutions
with focus on long-term
wealth creation/preservation
Value proposition
"Best advice" excellent
personalized financial
management with focus
on asset accumulation
"Best solution" superior
mass-customized solu-
tions along customer
lifecycle
Reach
Global
Euro-pean
Euro-pean
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Lamberti: Eurpean Banking & Insurance Conference, Merrill Lynch 10.10.2001 7
Private Banking
Private Wealth Management
Cornerstones of UHNW and Affluent/HNW proposition
Key strategic elementsKey strategic elements
n Relationship-based advisory
nIndividual (discretionary) portfolio management
n Multichannel distribution via flagship investment
centers/PBCs, client service line, online
n Ambitious organic growth, including small acquisitions
(e.g., asset managers, private banks)
Key strategic elementsKey strategic elements
n Client-centric model with all-encompassing, highly
individualized relationship orientation anddiscretionary investment process
nServicing independent from locations
n Clearly internationally/globally focused
n Growth mainly organic or through team "lift-outs"
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Lamberti: Eurpean Banking & Insurance Conference, Merrill Lynch 10.10.2001 8
Stable market position despite difficult markets
* Excl DB AB, DB SA/N.V.
Development of assets under control,UHNW and affluent/HNW
1998 2001 in EUR bn*
77100 107 101
43
53 54 56
3948 52
1998 1999 2000 06/2001
208 209
International
Germany
US Onshore
Facts & figures
121
192
313 308
n Pro forma: AuC incl DB Alex. Brown Private Client Services
n 39 countries
n 350 locations
n 7,600 employees
n 4,800 client staff
n 530,000 clients
n 68% of assets under
control outside Germany
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Lamberti: Eurpean Banking & Insurance Conference, Merrill Lynch 10.10.2001 9
Move from branch structure to high streetPrivate Banking Centers
FTE per Private Banking Center (Germany)
367367
150150
202202
Private Banking Centers (Germany)
FTE>104-6104-6104-6
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Lamberti: Eurpean Banking & Insurance Conference, Merrill Lynch 10.10.2001 10
"DB Account Bundles as anchor-product for the affluent
n Consult /
Plan
n Invest
n Bank
ExampleExample
Offered acrossDB 24 and Private
Banking
ExclusiveExclusive
PremiumPremium
AdvancedAdvanced
"DB Account""DB Account" ClassicClassic
Lifecycle bundles
Private Wealth Management
Private WealthManagement
Private Banking
moneyshop
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Lamberti: Eurpean Banking & Insurance Conference, Merrill Lynch 10.10.2001 11
Cornerstones of Retail/Mass-Affluent proposition
Key strategic elementsKey strategic elements
Facts & figuresFacts & figures
n Strong sales orientation with emphasis on customer
penetration & acquisition including third party offerings
n Rigorous customer profitability management
n Open to external growth through partnering/M&A
n 6 countries
n 11.5 million customers (Germany: 7.6 million)
n 20,000 employees incl. mobile sales force
n 9 call-centers
n 320 million customer contacts p.a.*n 2.1 million security accounts (investment 24 and maxblue)*
n 1.6 million online users*
* Germany
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Lamberti: Eurpean Banking & Insurance Conference, Merrill Lynch 10.10.2001 12
Deutsche Bank 24: Growth of stable income streams
Loansincome
Others
1,885Deposit
business
Securitiesincome
-70
1,992
+29
+77
+6%+6%
Insurance
+50+21
Net revenues of Deutsche Bank 24*in EUR million
1H2000 1H2001
* incl. Italy, Spain and others
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Lamberti: Eurpean Banking & Insurance Conference, Merrill Lynch 10.10.2001 13
n Acquisition of 100%* of Zurich Scudder Investments (ZSI)
excluding Threadneedle
n Value of USD 2.5 billion (for 100% of all companies)
DeutscheBank
ZurichFinancial
Services
StrategicCooperation
n Acquisition of 76%** of Deutscher Herold, and 100% ofDB Vita (Italy), DB Vida (Spain) and DB Vida (Portugal)
n Value of EUR 1.5 billion (for 100% of all companies)
n Insurance
nAsset Management
n Banking products and services (details under discussion)
* 80% from Zurich, 20% from minority shareholders
** with the right to acquire the remainder at the same price from minority shareholders
Key terms of the Scudder / Herold transaction
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Lamberti: Eurpean Banking & Insurance Conference, Merrill Lynch 10.10.2001 14
* excluding Threadneedle Source: Pensions & Investments Watson Wyatt 500, company data
1. Fidelity
2. UBS
5. Kampo
6. Axa
7. Barclays
8. State Street
9. DB
ZSI*
1,074
1,064
827
788
783
683
683
296
4. DB + ZSI 979
1,0163. Allianz
Assets under management (end 2000, in USD bn)
n No. 4 asset manager
globally
n High regional
complementarity
n in US mutual
n in US active
institutional
n in US passive and
n in European mutualfunds
n Critical mass in US HNWIsegment
Entering the bulge bracket in asset management
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Lamberti: Eurpean Banking & Insurance Conference, Merrill Lynch 10.10.2001 15
DeAM & Scudder:Strong complements for a diversified global footprint
U.S.
Retail
U.S.Institutional
Zurich &
Affiliated
Asia / PacificEurope
(ex Threadneedle)
Europe
U.S. PrivateInvestment Counsel
Asia / Pacific
U.S.Institutional
Scudder: AuM USD 278 bnDeAM: AuM USD 634 bn
U.S.
Retail
Other
57 56
142
4865
266
921
15
51
68
114
U.S. Private
Investment Counsel
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Lamberti: Eurpean Banking & Insurance Conference, Merrill Lynch 10.10.2001 16
Private Cl ient s and Asset
Managem ent (PCAM)
New PCAM business model serving the client throughenhanced connectivity within Deutsche Bank
Corporate and Invest -
ment Bank (CIB)
Trans-formation
CapitalCapital
MarketsMarketsPlacement /
AccessOrigination
Investment Process
Product Management
CRM Process
Credit Process
InvestorsInvestors
moneyshopPrivate Banking
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Deutsche Banks PCAM:New business model &
strategic outlook
Hermann-Josef Lamberti, Member of the BoardMerrill Lynch European Banking & Insurance ConferenceLondon, October 10, 2001