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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