EFTA01470762.pdf

Deutsche Asset & Wealth Management Key Client Partners — U.S. Investment Themes and Solutions September 2014 For Internal Use Only Participant Dial-In: (877) 500-9123 International Dial In: (973) 796-5004 Conference ID: 9048-0259 Encore Dates: 9/10 — 9/30/2014 USA Free Call: (866) 247-4222 Conference ID: 9048-0259 U.S. Key Client Partner opportunities are available to Institutional Investors only. EFTA01470762 A global partner for our clients Deutsche Bank A leading global financial services institution with a strong private client franchise Deutsche Asset & Wealth Management (DeAWM) Offers individuals and institutions traditional and alternative investments across all major asset classes Wealth Management Has been providing open architecture, investment management and capital markets solutions as well as wealth management, banking and lending services to high-net-worth individuals, families and select institutions for more than a century Key Client Partners (KCP) Key Client Partners aims to provide select sophisticated investors seamless access to cross asset class, cross border investment opportunities and financing solutions from Deutsche Asset & Wealth Management (DeAWM), Corporate Banking & Securities (CB&S), Global Transaction Banking (GTB) and 3rd party providers on a non-advised and non-fiduciary basis Deutsche Asset & Wealth Management For Internal Use Only EFTA01470763 Positioned to guide clients through the current market Deutsche Bank financial standing Total assets Core Tier 1 capital ratio DeAWM financial standing — total assets Global Americas Wealth Management-Americas Deutsche Bank Ratings Moody's investors service Standard & Poor's Fitch ratings Presence and span Global employees (FTE) Countries with DB presence (as of 12/31/2013) Total clients (as of 12/31/2013) Award highlights2 USD 2,255 billion 9.5% USD 1,287 billion USD 355 billionl USD 115 billionl A2 A A+ 97,184 Over 70 Over 30 million (1) Included in total global assets (2) For a full list of awards visit: http://www.db.com/en/content/company/- current_awards.htm Source: Company data, as of March 31, 2014 (unless noted otherwise) Deutsche Asset & Wealth Management For Internal Use Only 2 EFTA01470764 Wealth Management One of Deutsche Bank's five core businesses Deutsche Bank Private & Business Clients Corporate Banking & Securities Asset & Wealth Management Global Transaction Banking Global Markets Corporate Finance Wealth Management Asset Management Non-Core Operations Key Client Partners Deutsche Asset & Wealth Management For Internal Use Only 3 EFTA01470765 What is Key Client Partners (KCP)? A global team with the capabilities and broad coverage to better serve key clients KCP has been established to provide high-level coverage and unique investment opportunities to a subset of the top tier UHNWI & Family Offices through a differentiated product offering and investment platform KCP global coverage KCP clients will be serviced from one of these regional hubs KCP capabilities & differentiated offering Key Client Partners point of access: Deutsche Asset & Wealth Management (DeAWM) London New York Geneva / Zurich Frankfurt Corporate Banking & Securities (CB&S) Global Transaction Banking (GTB) Singapore 3rd Party KCP capabilities KCP clients Specialty and boutique offering for our UHNW base with dedicated coverage expertise KCP clients are institutional in size, need, sophistication, and are transactional in nature Select UHNW individuals with net worth of at least USD 100 million Provide a comprehensive coverage of capital markets opportunities, private investments, and asset and liability management Work with all DB divisions and institutional focus areas to deliver the best investment opportunities with a solution oriented approach Non-advisory platform Private Markets Structured Finance & Lending Capital Markets Alternatives Deutsche Asset & Wealth Management EFTA01470766  Direct investments Co-investments, tactical structured vehicles Bridge loan financing through letter of credit facilities Structured repurchase agreement Flow trading, listed & OTC derivatives Tactical trading opportunities Private equity, hedge funds Real estate, infrastructure For Internal Use Only 4 EFTA01470767 Access to exclusive offerings for qualified clients 1 Key Client Partners (KCP) aims to provide selected investors seamless access to the full resources of Deutsche Bank on a non-advised and non-fiduciary basis2 Connectivity — DeAWM — Corporate Banking & Securities — Global Transaction Banking — Research — Third Party Providers — Open Architecture KCP Clients3 — UHNW Individual Investors — Family Offices — Foundations, Endowments — Private Companies — Small-Medium Sized Institutions Cross Border — USA — Latin America — Europe — Asia Pacific — Middle East (1) Institutional investors only as defined by FINRA 2111 (2) KCP services are offered to a select group of DeAWM clients who are able to meet certain criteria including, without limitation, financial and sophistication qualifications. All KCP opportunities may not be available in all DeAWM locations (3) The KCP on-boarding process applies Deutsche Asset & Wealth Management For Internal Use Only 5 Cross Asset Class — Alternatives — Commodities — Credit — Currencies — Equities — Fixed Income — Multi Asset — Real Estate EFTA01470768 Key Client Partners capabilities Our goal is to provide innovative, personalized investment solutions and opportunities across a full range of unique asset classes that meet the needs of sophisticated, qualified clients Futures & options Commodities Equities Credit Rates FX Capital Markets Private Markets Real estate Hedge funds Infrastructure Portable alpha Alternative beta Custom indices Private equity funds Alternative Investments Co-investment opportunities Private direct investments Client-to-Client interaction Special opportunities Debt participation Deal sourcing Structured Finance Securitization Municipal finance and Lending Supply chain finance Commercial real estate Loans vs. illiquid collateral Deutsche Asset & Wealth Management For Internal Use Only 6 EFTA01470769 Agenda emphasis 01 Business update 02 Areas of expertise 03 Key investable themes 04 Implementation of themes 05 Key Client Partners FAQ For Internal Use Only 7 EFTA01470770 Business update Key contacts and metrics KCP U.S. Desk: 212-250-7722 David Mann Director, KCP U.S. Sales New York, North East, South East Thomas O'Rorke Director, KCP U.S. Sales New York, Mid Atlantic, Mid & South West Tazia Smith Director, KCP U.S. Sales New York, West Coast Matt Glassman P U.S. Sales even Quinn Associate, KCP U.S. ay ipman Analyst, KCP U.S. Ariane Dwyer Analyst, KCP U.S. Melissa Mittelman Analyst, KCP U.S. KCP Americas Caroline Kitidis Managing Director, KCP Americas Desk Head Bruce McDermott Managing Director, KCP Americas Alternatives & Private Markets Mathew Negus Vice President, KCP Americas COO Deutsche Asset & Wealth Management People Matt Glassman joins KCP US sales desk from Goldman Sachs Daniel Sabba will be joining at the end of September to lead KCP Capital Markets Business - KCP Americas strong YTD, first half of 2014 business surpassed 2013 full- year revenues - KCP U.S. + 147% Y/Y, 46% ahead of 2014 budget EFTA01470771 Capital raises of $190mm across Private markets and AFS/ARA investments 55 active relationships Client base median net worth —$500mm Made up of 60% family offices Top sectors of clients; Financial services, Real estate, Entrepreneurs/- Private businesses Recent Highlights - US Client most active regions: NY, Mid-West, South-East Private Markets: Project Troop - $25mm syndicated loan Single Family Office - PCS Boston - AWM revenue $0.35mm Client invested in a syndicated loan Loan was provided to a recreational ski resort and was collateralized by lease payments from a publicly traded operator Structured Financing: Proton Therapy Center $130mm debt financing - PCS Winston-Salem Corporate client - AWM revenue $1.5.mm (est.) - GBP 42mm loan - UHNWI - PB Chicago - AWM revenue $2.5mm (est.) Financing provided to a Proton Therapy center ; $65mm of 5 year bond issuance and $65mm of 30 year bond issuance Real Estate Lending: Commercial London Property Balance sheet financing for operator of landmark events arena in the UK For Internal Use Only 8 EFTA01470772 KCP investment themes and solutions 01 Business update 02 Areas of expertise 03 Key investable themes 04 Implementation of themes 05 Key Client Partners FAQ For Internal Use Only 9 EFTA01470773 KCP areas of expertise Private Markets Co-investment opportunities Private direct investments Client-to-Client interaction Special opportunities Debt participation Deal sourcing Facilitate the sourcing, trading, structuring, arranging and executing of opportunistic, asset backed debt and equity related investments Structured Finance and Lending Loans vs. illiquid collateral Commercial real estate Supply chain finance Municipal finance Securitization Capital Markets Futures & Options Commodities Equities Credit Rates FX Alternative Investments Real estate Private equity funds Alternative beta Custom indices Portable alpha Infrastructure Hedge funds Provide industry leading solutions that vary in terms of complexity, customization, and underlying asset type Provide superior expertise and execution capabilities for all traded investment and liability management products A leader in the alternative investment space which can provide clients portfolio exposure to opportunistic special situations and EFTA01470774 targeted sources of return Deutsche Asset & Wealth Management For Internal Use Only 10 EFTA01470775 KCP investment themes and solutions 01 Business update 02 Areas of expertise 03 Key investable themes 04 Implementation of themes 05 Key Client Partners FAQ For Internal Use Only 11 EFTA01470776 Themes for UHNW investors I. Stable sources of current income II. Distressed asset opportunities III. Transitional (non-bank) capital — need for asset/debt financing IV. Structural solutions V. Real assets as inflation protection VI. Private investments VII. Special situations — tactical trade opportunities VIII. Uncorrelated sources of return Deutsche Asset & Wealth Management For Internal Use Only 12 EFTA01470777 KCP investment themes and solutions 01 Business update 02 Areas of expertise 03 Key investable themes 04 Implementation of themes 05 Key Client Partners FAQ For Internal Use Only 13 EFTA01470778 September agenda for implementation of themes Alternative investments — Short duration CLO equity — Hard asset put structure Private markets — Private markets bi-weekly deal list — Suntex Marinas — LiquidAlts H2O Force 10 Fund Capital markets — Japanese Yen & Nikkei geared basket — BlueChip Stock (XYZ) arbitrage trade — Positioning against geopolitical risk Structured finance and lending — Hedge fund portfolio leverage — Middle market loan origination Deutsche Asset & Wealth Management For Internal Use Only 14 EFTA01470779 Short duration CLO equity Area of expertise: Alternative investments Theme: Structural solutions Overview — The US CLO market is becoming more open to creativity in deal structures and investment strategies — Strong demand for seasoned CLO deals has inspired the creation of short duration CLOs — DB is a pioneer in this space, having launched the first short duration CLO in the US market in May of 2014 for the leading credit manager, Ares Management — DB's CLO team have several short duration CLO deals in the pipeline DB CLO Pipeline Target Pricing Late September/Early October Mid/Late October 4014 4014 1015 1015 Manager Regiment Capital - Cavalry V (Short Duration) Ares Mountain Hawk IV (WAMCO) Benefit Street VI (Providence) LCM Blackrock Characteristics of short duration CLOs Short duration CLOs combine the best features of 1.0 and 2.0 CLOs, and offer an attractive alternative versus CLO 1.0 or refinanced 2011/2012 CLO bonds: — Significant Original Issue Discount when compared to typical 2.0 new issue deals — Very little or no reinvestment period, and one year non-call period creates more bullet like debt vs. regular CLOs — Capped amend-to-extend activity and capped reinvestment of prepayments gives more certainty over debt and equity life when compared to typical CLOs — No issuer repurchase of notes, modification of weighted average life rule, which are two debt unfriendly features in many CLOs — Equity is positive IRR to one year call (this is not the case for any new issue 2.0) — The short duration CLO deals marketed through DB are Volcker compliant Deutsche Asset & Wealth Management For Internal Use Only 15 Launch Non-Call Period Reinvestment Period Final Maturity EFTA01470780 The evolution of CLOs CLO 1.0 Columnl Pre Credit Crisis 3-5 Years 6-7 Years 14-16 Years Post Credit Crisis —2 Years 3-4 Years 11-12 Years Example deal: Ares XXX — Closed May 2014 z Key features: — Ares managed CLO with vanilla loan collateral — 100% ramped at close — No reinvestment period — Non call period of one year, and a 10 year legal final — No single tranche refinancing/re-pricing, no issuer repurchase of notes — Simplified documentation and structure, lower fee deal vs typical 2.0 CLOs — Post closing, the manager has ability to reinvest a maximum of 50% of loan prepayments and 100% of credit risk/credit improved sales, provided certain conditions are satisfied Capital Structure Rating Class Class A Notes Class B Notes Class C Notes Class D Notes Class E Notes Equity TOTAL (Moody's) Par Amount ($) Percentage [Aaa] [Aa2] [A2] [Baa2] [Ba2] NR [240,000,000] [33,000,000] [17,000,000] [14,000,000] [20,500,000] [36,250,000] [360,750,000] [66.5]% [9.1]% [4.7]% EFTA01470781 [3.9]% [5.7]% [10.01% [100.0]% WAL (years)* [3.0] [5.2] [5.2] [5.2] [5.2] N/A Coupon L + [0.85]% L + [1.45]% L + [2.20]% L + [2.85]% L + [4.20]% N/A L + [1.28]% DM L + [1.10]% L + [1.80]% L + [2.75]% L + [3.60]% L + [5.15]% N/A L + [1.62]% * WAL & Price calculated based on a 25% CPR, 2% CADR, 70% recovery and 5.2yr Call with 50% prepayments reinvested in equal or shorter maturity assets as long as the WAL is greater than 2.0 years Price [99.27]% [98.31]% [97.41]% [96.55]% [95.80]% [87.03]% CLO 2.0 Short Duration CLO 2014 1 Year 1 Year 10 Years EFTA01470782 Hard asset put structure Area of expertise: Alternative investments Theme: Distressed asset opportunities Overview —DB specializes in lending against non vanilla collateral including hard assets. While lending against these assets provide an attractive risk reward profile, it is not capital efficient for DB to hold this type of collateral on its balance sheet —DB is able to offer compelling, one-off, opportunities for investors interested in ownership of these assets. This is accomplished through the use of a "put" structure whereby an interested investor sells a put on the underlying asset at a discount to the market value. If the underlying borrower defaults on his loan at or before expiration, DB has the right to sell the asset to the investor at the strike price. If the borrower does not default the investor retains the premium paid by DB Transaction explanation — At initiation: —DB enters a transaction with a put writer. The put writer agrees to purchase a hard asset at a predetermined "strike" price should DB exercise the option. The strike price can vary between —30-50% of the market value of the asset Day 1 Put Purchase Premium Put Writer —At expiration: —DB will have the right to sell the asset to the put writer at the strike price At exercise Strike Put Asset @ Strike (30-50% market value) Writer Indicative option terms Principal $25-250mm Strike Price 30-50% asset value Term 1-3 years Premium 1-2% per annum Deutsche Asset & Wealth Management For Internal Use Only 16 EFTA01470783 Private markets bi-weekly deal list Current Opportunities Deal Name Retrofit RIN, Ltd. French Development California Development Hybrid Truck Refitter Asset Class Real Estate ESG Infrastructure Leisure (Golf) Leisure (Golf & Vineyard) Private, direct lending Security Type PE fund LP interest CLO Equity Private, direct equity Minority equity stake Mezz loan Timing 9/31 first close Q3-4 TBD TBD Q3 Returnl Tenor 10%+ IRR 13 yrs + 15%+IRR 12 yrs TBD TBD TBD Negotiable structure Pipeline of Potential Opportunities: Not Currently Approved for Distribution Asset Class Deal Name Marina operator2 EFTA01470784 French Development Put Option Secondary prelPO tech Oil & Gas Production2 Bermuda Reinsurance2 H2O Force 10 LiquidAlts Leisure (Boating) Option on Credit Tech Oil & gas Finance Hedge Fund Security Type Direct private equity OTC Derivative Secondary private placement Private equity fund Private, direct equity Liquid HF (1) Return Tenor projected. Actual return will vary. (2) DB does not yet have an active mandate. Deutsche Asset & Wealth Management For Internal Use Only 17 Timing Q4 Q4 TBD Q3-4 Q4 Q4 Returnl Tenor TBD TBD 20% IRR 5yr EFTA01470785 TBD TBD TBD —3 yrs TBD 3yrs TBD TBD Min Invest Total Raise $5mm $25mm $1mm $75mm TBD €660mm TBD $110mm $30mm $30mm Onshore / Offshore Onshore Onshore Both Both TBD Description RREEF fund to acquire and manage a diverse portfolio of energy efficiency retrofits on real estate buildings in North America RIN Ltd. is a newly formed private debt fund, utilizing CLO structuring, that will seek to originate a diversified portfolio of private infrastructure loans Golf course and lodging development in the heart of France. Current owner is willing to sell anywhere from controlling stake through full ownership Vineyard expansion and resort development of 22,000 acres within Napa and Lake Counties in the historic Guenoc Valley of California Refitter of GM trucks from internal combustion to extended range electric vehicles Min Invest Total Raise $25mmm $300mm TBD TBD TBD TBD $65mm $1mm TBD EFTA01470786 $1mm $25mm Onshore / Offshore Both Both TBD Onshore TBD TBD TBD Description Investment in a diversified marina assets portfolio managed by the marina arm of a well-established real estate investment firm Write a put option on loan secured by French leisure real estate Opportunity to purchase direct or indirect equity in pre-public VCsponsored tech, late-stage growth companies Existing clients will be offered the opportunity to invest in a second equity raise Investment in Bermuda reinsurance company that invests in a credit strategy Hedge Fund Macro, multi- strat exposure via the LiquidAlts Hedge Fund Platform, ability to directly own the individual positions traded by the hedge fund manager EFTA01470787 Suntex marinas Area of expertise: Private markets Theme: Private Investments Investment profile of marinas KCP believes marinas provide a compelling investment opportunity for several reasons: — REIT status: The industry has significant scale, growth potential, strong free cash flow, and generates an attractive yield; the asset class now qualifies for REIT status — High current and forecasted revenue: In 2013, U.S. Marinas generated $4.2bn in revenue, 68% of which was generated by boat owners of the Baby Boomer generation (ages 45+). Baby boomers have, and are predicted to continue having significant amounts of wealth and leisure time — Stability: Quality marinas in prime locations are stable through economic cycles, resistant to down turns while closely mirroring inflationary trends. The customer base is loyal with low turnover, resulting in low default rates — Barriers to entry: The number of marinas hardly fluctuates due to limited availability of appropriate land, regulations and environmental protection laws, and high initial capital investments — Consolidation opportunity: The marina industry is very fragmented. In the US there are approximately 2,500-3,000 institutional quality marinas, with at least 90% of owners being singular "mom and pop" businesses poised for acquisition and operational improvement — Risks: Economic downturn that results in fall in value of marina values, drought Suntex Ventures: an overview — Suntex Ventures, LLC, is a real estate company investing exclusively in niche mixed-use marinas and their related operating platforms — Suntex currently ranks among the top 5 marina owners and operators in the U.S. The group has acquired 29 marinas and 4 marina loans, valued at $300mm in total. It currently owns and operates 20 marinas, and manages another 2 — Suntex has a near 20 year history of success with strong historical distributions made from marina cash flow: realized historical IRRs have been in excess of 30% — The executive team has worked together for over 20 years — Suntex is already internationally established, and will maintain exclusivity in many markets with high demand — Potential exit strategies are through an IPO or through sale to an existing REIT management company (1) As of February 19, 2014. Source: Green Street Advisors Deutsche Asset EFTA01470788 & Wealth Management Key Suntex managed marinas Suntex current holdings For Internal Use Only Suntex potential acquisitions Suntex / Sun resorts international sold / disposed 18 Suntex current, past and potential acquisitions Marinas provide yields at the top end of the range for all REIT asset classes, 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 8.50% 8.00% 8 00% 6.40% 6.40% 6.30% 6.20% 5.80% Marinas Lodging Data center Healthcare Retail Multifamily Industrial Office Nominal cap rates EFTA01470789 LiquidAlts H2O Force 10 Fund Area of expertise: Private markets Theme: Structural solutions Overview — H2O Force 10 is a global macro, discretionary strategy sponsored by our LiquidAlts hedge fund platform within DeAWM — H2O Asset Management — H2O AM LLP was founded in 2010 by veterans Bruno Crastes (CEO) and Vincent Chailley (CIO), who worked together for 18 years prior; their team averages 15years together — Boutique structure, backed by one of Europe's largest asset managers (Natixis Global Asset Management, $900 bn under management as of 3/31/14) — $6.0bn AUM as of May 5th, 2014 — Investing in the LiquidAlts H2O Force 10 Fund presents several benefits and features: — Style: Global Macro, Multi-Asset, Active, Top-Down, Value and Diversified — unlike traditional global-macro, the fund takes a collective approach across non-siloed asset classes — Fully Discretionary — +24.9% compounded annual return since March 2011 inceptionl — Low correlation with global bond & equity market indices and CTA's — Daily Liquidity at NAV — No lock-up gating or minimum holding period Fund infrastructure — The LiquidAlts H2O Force 10 Fund is built on the award winning dbAlternatives managed account platform infrastructure, which provides daily liquidity, full transparency, risk reporting/oversight, and institutional fees — The fund is not a feeder — it invests directly in the financial markets — Investment decisions are made and implemented by LiquidAlts H2O Force 10 Fund within the risk and infrastructure framework provided by Deutsche Bank — Deutsche Bank, in its various capacities, provides overall governance, daily risk monitoring, operational oversight, legal services, investor services and service provider/counterparty oversight DB LiquidAlts H2O Force 10 Fund Deutsche Asset & Wealth Management Liquid Alts H20Fund Service Providers (1) Reported performance is gross of management and performance fees For Internal Use Only 19 Monthly Investment EFTA01470790 Reports Summary fund terms Annual Fee: 1.5% p.a. H2O Performance Fee: 20% Minimum subscription: $1,000,000 initial subscription, $10,000 incremental subscriptions Dealing Frequency: Daily Dealing Day: Each business day Subscription notice: 2 business days for initial subscription, 1 business day for incremental subscriptions Redemption notice: 2 business days Performance H2O Force 10 Strategy Returnsl Compounded Annual Return Cumulative Return Trailing 12 months Trailing 3 years Largest Monthly Gain Largest Monthly Loss % Positive Months % Negative Months Investor information and materials Due Diligence Independent Due Diligence by Darius capital partners produces an investment and operational due diligence report Monthly reports containing portfolio commentary and outlook in addition to detailed risk & performance data 24.90% 112.05% 14.40% 120.61% 10.73% -5.58% 75.61% 24.39% Daily NAV Reporting NAV available daily, including on Bloomberg M.A.R.S risk system Online Risk Reporting provides aggregate metrics EFTA01470791 on the fund including sector breakdown, top holding concentration, scenario analysis and VaR EFTA01470792 Japanese Yen & Nikkei geared basket Area of expertise: Capital markets Theme: Special situations — tactical trade opportunities Overview — DB currently holds a bullish outlook on the Japanese Economy and a bearish outlook on the Japanese Yen. Combining DB's bullish Japanese equity theme with the bearish JPY outlook, creates an opportunity to focus upon Japanese equities with an increased Beta to currency fluctuations — The recent announcement that Japan's 2Q GDP decreased at an annualized rate of 6.8% was close to the consensus forecast, due to April's sales tax increase. The focus for the economies of Japan and the US now moves to the strength of 3Q data. As this is confirmed, we will be watching for the continued August trend of weaker JPY vs. USD1 — Forecast: Year end forecast for JPY is Y112. Spot JPY trades at Y106.2085 — Risks: Yen appreciation against the dollar, downside to Japanese equities JPY sensitive stocks — historical betas — Given our view for further JPY depreciation and our optimistic outlook for the Japanese economy, we have looked to identify specific stocks which should continue to outperform amidst further currency weakness — As opposed to taking a more traditional approach, such as forecasting exclusively export-oriented stocks or screening for percentage of overseas sales / operating profits, we have opted to look at those stocks which have historically been most sensitive to currency moves based on previous price performance. Implementation — JPY/NKY Geared Basket (ticker DBHKNKJN) — The JPY & NKY Geared basket consists of the 20 stocks in our universe with the highest combined sensitivity to changes in the 3month USDJPY and 3-month changes in the Nikkei, with average sensitivity of 0.78 and 1.39 respectively — During the rally of Jun 2012 through Jan 2014, the basket outperformed the Nikkei by 128.4% — On average over the last 20 years, this basket has outperformed the Nikkei by 42.7% during JPY selloff periods and underperformed by only 2.1% during periods of JPY strength with a return / vol of 3.1 and -0.2, respectively — Risks: Max loss — 100% of notional (1) DB Global Markets Research: Japan Data Flash 08/13/14 (2) For additional detail on basket holdings please see Appendix. DB Global Markets Research: Synthetic Equity & Index Strategy 01/22/14 Deutsche Asset & Wealth Management For Internal Use Only 20 JPY & NKY Geared Basket — 20 Year History2 This chart illustrates the outperformance of the basket vs. JPY & NKY over consecutive reset periods EFTA01470793 BlueChip stock (XYZ) arbitrage trade Area of expertise: Capital markets Theme: Special situations — tactical trade opportunities Overview — XYZ's daily stock return has exhibited statistically significant correlation to whether it is Monday or Friday since 2011, coinciding with the listing of weekly options — Looking at the net deltas of actual option activity shows that Fridays are more likely to see selling activity, while Mondays are more likely to see buying activity — Based upon regression analysis of XYZ's daily stock returns vs. S&P's daily stock returns on Monday and Friday, respectively, both Monday's and Fridays P-Values have declined (lower p-value means higher statistical significance) since 2008. Both P-values demonstrate statistical significance since 2011 — Going long XYZ / Short S&P500 only on Mondays produces over 2x a long/short strategy held over all days Strategy Implementation DB proposes a strategy capturing the combined return of the Friday and Monday trades (short XYZ / Long S&P500 and Long XYZ / Short S&P500, respectively), with dividends and gains reinvested Underlying index will go long XYZ / Short S&P500 on Mondays and short XYZ / Long S&P500 on Fridays. Strategy will use the SPDR S&P 500 ETF to replicate the S&P 500 total return Clients access the index via OTC Option with embedded 2bps per execution (8bps/week) & 1% annualized fee and expected 20% indicative initial collateral. Strategy incorporates a transaction cost of 0.002% per execution and notional amount executed Risks: Negative performance on the underlying index will be realized on clients' total notional (1) Collateral requirement will depend on unique clients' ISDA CSA. Est 30% Deutsche Asset & Wealth Management For Internal Use Only 21 Annual Returns Weekly Options in XYZ list (June 2010) Combined Friday / Monday Performance vs S&P500 EFTA01470794 Positioning against geopolitical risk Area of expertise: Capital Markets Theme:Special situations — tactical trade opportunities Overview: S&P Outperformance over EEM contingent on equities selling off Rationale: S&P expected to sell off less than EM equities in a global risk- off scenario — Protection in global risk-off environment — Equities will sell-off in a geopolitical stress situation — however, S&P should perform better (drop less) than EEM — Trade offers risk-limited exposure via options — Payoff is equal to the amount of outperformance of the S&P relative to EEM — and nothing if S&P underperforms — Given Asia has heaviest weight in EM equities, trade also offers exposure in case of Asia flare-up — Risk: Loss of option premium Implementation: Outperformance Call Option — 12mo (SPY outperformance over EEM) Overview: Long European Oil Sensitivity Basket' Rationale: Benefit from European stocks particularly sensitive to oil prices — Long / Short basket of Stoxx600 companies with highest and most consistent positive and negative sensitivity to oil prices — screened for liquidity — Basket outperforms in rising oil price environment, therefore offering positive exposure to Geopolitical disruptions, particularly in Russia and Middle East — Risk: falling oil prices will see basket underperform Implementation: Buy European Oil Sensitivity Basket via Delta One note or Total Return Swap Source: Bloomberg Finance LP, Deutsche Bank Research European Oil Sensitivity Basket Outperforms market when Brent rises (1) For additional detail on basket holdings please see Appendix Deutsche Asset & Wealth Management For Internal Use Only 22 EFTA01470795 Hedge fund portfolio leverage Area of expertise: Structured finance and lending Theme: Structural solutions Overview — Portfolio of diversified hedge fund shares serves as collateral for a leverage facility — Additional capital through leverage boosts investor returns and allows for flexibility of capital deployment — Risks: leverage may enhance losses and covenant breaches may result in the sale of the portfolio Typical financing terms Portfolio — Diversified across strategies — 20+ individual managers — >$50mm aggregate AUM Loan to Value — 10-50% LTV (typical notional is $20mm+, with capacity at $1bn) — Variable funding note (VFN) — Usually structured as a minimum usage facility (—80% of total size) Structure — If the outstanding borrowing amount is less than the minimum usage threshold, the borrower must make whole on the minimum amount Pricing — 3M Libor +250bps (on the greater of the outstanding borrowing and the minimum usage), depending on characteristics of the portfolio and creditworthiness of the borrower — Either undrawn fee or minimum usage — Upfront structuring fee DB takes pledge over Custody Account Financing Costs Client Drawn Amount Funded Fund Investments Custodian Custody Account — Flexible drawdown and repayment — cash movement usually within 2 business days of notice — Collateral for the facility is typically secured through a pledge of the Custody Account. No need for transfers or change of ownership of underlying fund shares, thus retaining original investment (e.g. fees, lockups, high watermarks) — Dynamic haircutting process allows our clients to maintain a more flexible EFTA01470796 investment process. Haircut will be based on pre-agreed investment guidelines — Investment guidelines are easily quantifiable rules and are set based on concentration limits, strategy diversification and liquidity profile Deutsche Asset & Wealth Management For Internal Use Only 23 EFTA01470797 Middle market loan origination Area of expertise: Structured finance and lending Theme: Structural solutions Overview: Middle market lending — Middle market loan transactions are typically driven by the need to finance dividend recaps and leveraged buyouts — DB works across various business types to provide BDC-style, middle market lending Key loan parameters — Loan size: $50mm-300mm — Duration: 3-5years, having financed up to 7years — Leverage: between 3.5-5.5x EBITDA — 3.5-4x for Senior — 5-5.5x for Mezzanine — Rates: Senior can range from 4-7%; Mezz can range from high single to low double digit yields — Fees: 1-1.5% upfront Company profile Size EBITDA range $1525mm Case Study: Frac sand processing company — DB extended —$50mm of senior secured debt to a frac sand mining and processing company that was seeking to purchase reserves currently being mined under contract — Its senior secured structure included all assets of the company and its subsidiaries — Financing was structured in 3 phases (1 & 2 complete); upsize of up to -$50mm available upon meeting financial metrics, and its proceeds would be used for expansion and logistics improvements — Current off-take contracts and backlog of additional contracts to be executed as additional mines come online — Low risk expansion strategy, given agreed purchase price under option contract and basic, everyday construction processes required for logistics improvement Financing Amount Tenor Collateral Hard assets Industry Industry agnostic but with focus on industrials & natural resources Further draw conditions — Completion of asset purchase — Certain financial metrics Covenants EFTA01470798 — Negative pledge — Minimum liquidity — Leverage ratio — Debt service coverage ratio — CapEx limits — Limited distributions —$100mm (including potential upsize) 5 yrs Economics High single digits Purpose Purchase of assets, logistics improvements, and working capital Deutsche Asset & Wealth Management For Internal Use Only 24 EFTA01470799 KCP investment themes and solutions 01 Business update 02 Areas of expertise 03 Key investable themes 04 Implementation of themes 05 Key Client Partners FAQ For Internal Use Only 25 EFTA01470800 KCP FAQs What is Key Client Partners? — An AWM Global Client Group (GCG) Sales desk providing senior client coverage out of the U.S., offering tailored solutions and investments generally not available to WM clients on a strictly non-advised basis What type of clients are covered by KCP? — AWM-KCP has a mandate to cover private wealth and ultra-high-net worth individuals and their investment vehicles (Private Clients, Family Offices, Foundations, Private Companies, Small-Medium Institutions, Funds) — Quantitative Criteria: Clients with Total Net Worth > $100mm, minimum $50mm Total Assets — Qualitative Criteria: All services offered to clients deemed sophisticated and KCP eligible based on completed and signed Client Approval Form ("CAF") What kind of transactions can be executed via KCP and how are they selected? KCP offers clients access to: a. The full range of Deutsche Bank's institutional capabilities across the Capital Markets platforms b. Proprietary private market investment opportunities from within DB Group and 3rd Parties c. Structured Financing and Lending solutions d. Alternatives (Hedge Funds, Private Equity, Real Estate) e. Non-Core Assets — Investment opportunities are sourced from the internal DB network, as well as from external sources (including inquiry from AWM client base) — The main element of the KCP investment process is a weekly review whereby the KCP investment specialists discuss current themes and trade ideas and then filter various investment opportunities based on a number of key factors — The KCP Product Review Committee (KPRC) reviews the eligibility of non - flow product for KCP clients How is KCP different from the normal Wealth Management Business / PIC? — vs WM: senior coverage, access to full product platform, direct CB&S access, KCP owned processes geared towards coverage of top tier Key clients, strictly non-advisory — vs PIC: part of AWM, focus on holistic client relationship not transactions, open architecture What does non-advisory mean? — KCP is dealing only with sophisticated clients that are able to evaluate the merits/risks of investment opportunities on their own — Clients must conduct their own due diligence on investment opportunities — KCP provides factual information only and does not make personal recommendations — Client Advisors must not give an opinion on KCP investments — KCP is not discretionary — all investment decisions to come from the client Deutsche Asset & Wealth Management For Internal Use Only 26 EFTA01470801 KCP FAQs Why should I involve KCP in the relationship with my client? — KCP is your service provider to deepen your relationship to key clients — Client Advisors receive all revenues (KCP as cost centre) — KCP investment offering as an enabler to win new Key Clients and increase NNA How do I bring clients on to the KCP platform? — Contact the KCP team to discuss your client case or KCP prospect — The U.S. adoption should ensure proper documentation of the client's sophistication and investment experience in order to deal with KCP on a nonadvised basis — The KCP Client Approval Form (available shortly via the WM intranet) is the second step What documentation is a client required to sign for KCP? New clients (to DeAWM) will be legally adopted according to the standard KYC/- AML process Mandatory KCP documents: a. KCP Non-Advisory Letter b. Institutional Account Certification c. Additional Documents might be required according to client needs (QIB Certificate, ISDA) Can my client get direct CB&S access through KCP and how are revenues shared? — Yes, KCP U.S. clients are on-boarded to the CB&S platform — Depending on the transaction revenues will be shared 50/50 between AWM and CB&S and reviewed on a monthly basis — In general, KCP clients will be on-boarded to the AWM (Pershing) platform for execution where possible (100% revenues for AWM, visible in GMIS) What is the added value of KCP to the client? — Unique investment opportunities normally not available to WM client base — Holistic client service for access to all DB capabilities globally — Access to DB's investment bank and open architecture — In-house review of product/client suitability enabling quick time to market Contacts Caroline Kitidis (Head of KCP Americas) + 1 (212) 454-0601 Mathew Negus (C00, Business Management KCP Americas) +1 (212) 250-6746 Deutsche Asset & Wealth Management For Internal Use Only 27 EFTA01470802 Appendix: Basket Holdings Japanese Yen & Nikkei Geared Basket — Holdingsl Ticker 7261 8609 7270 8604 5101 8616 6141 8601 5334 7205 Name MAZDA MOTOR CORP OKASAN SECURITIES GROUP INC FUJI HEAVY INDUSTRIES LTD NOMURA HOLDINGS INC YOKOHAMA RUBBER CO LTD TOKAI TOKYO FINANCIAL HOLDIN DMG MORI SEIKI CO LTD DAIWA SECURITIES GROUP INC NGK SPARK PLUG CO LTD HINO MOTORS LTD Coeff-icient 3.7 3 2.8 2.3 2.3 2.3 2.2 2.2 2.1 2 Long / Short European oil Sensitivity Basket — Holdings2 Long Basket Ticker LUPE SS STL NO Statoil Asa PGS NO Petroleum Geo- Services CGG FP CGG FUR NA Fugro NV-CVA Technip SA TEC FP BG/ LN Bg Group Plc RDSA NA Royal Dutch Shell PMO LN Premier Oil Plc OMV AV OMV Ag TLW LN Tullow Oil Plc Long Name EFTA01470803 Lundin Petroleum AB Country Sweden Norway Norway France Netherlands France Britain Netherlands Britain Austria Britain Energy Energy Energy Energy Energy Energy Energy Energy Energy Energy Energy Sector Ticker 8595 6701 7012 9104 6758 7276 5406 7203 8628 7272 Name JAFCO CO LTD NEC CORP KAWASAKI HEAVY INDUSTRIES MITSUI OSK LINES LTD SONY CORP KOITO MANUFACTURING CO LTD KOBE STEEL LTD TOYOTA MOTOR CORP MATSUI SECURITIES CO LTD YAMAHA MOTOR CO LTD Coeff-icient 2 2 1.9 EFTA01470804 1.9 1.9 1.8 1.8 1.7 1.7 1.7 Short Basket Ticker Short Name Country HEI GR HeidelbergCement Ag SMIN LN Smiths Group Plc ADS GR Adidas Ag DAI GR Daimler Ag- registered Shares EKTAB SS Elekta AB-B Shs ABI BB Anheuser-Busch Invben NV BKT SM Bankiter SA ZOT SM Zardoya Otis SA IFX GR Infineon Technologies Ag CCL LN Carnival Plc CCLN LN Carillion Plc ATCOA SS Atlas Copco AB-A Shs BPSO IM Banca Popolare Di Sondrio HO FP Thales SA SAB SM Banco de Sabadell SA TEF SM Telefonica SA GAS SM Gas Natural Sdg SA STM IM Stmicroelectronics NV UG FP ALU FP RCF FP Peugeot SA BAYN GR Bayer Ag- reg Alcatel-Lucent BATS LN British American Tobacco Plc NG/ LN National Grid Plc Teleperformance UU? LN United Utilities Group Plc ABF LN Associated British Foods Plc (1) Source: DB Global Markets Research: Synthetic Equity & Index Strategy 01/22/14 (2) Source: DB Global Markets Research The House View 07/29/14 Deutsche Asset & Wealth Management CAST ss Castellum AB For Internal Use Only Germany Britian Germany EFTA01470805 Germany Sweden Belgium Spain Spain Germany United States Britian Sweden Italy France Spain Spain Spain Switzerland France Germany France Britian Britian France Britian Britian Sweden Materials Industrials Cons Discretionary Cons Discretionary Health Care Consumer Staples Financials Financials IT Cons Discretionary Industrials Industrials Financials Industrials Financials Telecome Utilities IT Cons Discretionary Health Care IT Consumer Staples Utilities Industrials Utilities Consumer Staples Financials EFTA01470806 28 Sector EFTA01470807 Disclaimer This material has been prepared solely for informational purposes, and does not contain the full range of products and services available through Deutsche Bank. Client-Facing Professionals should not rely solely on this material to determine the products or services to introduce to clients, as all products included herein may not be suitable for every client, and there may be eligibility requirements for certain products. Client-Facing Professionals are responsible for determining the suitability of products and services recommended to clients and for confirming that clients meet any applicable eligibility requirements. Products and services discussed herein may not be offered by every division within Deutsche Bank Asset & Wealth Management. Key Clients Partners services are offered to a select group of Deutsche Bank Asset & Wealth Management ("DeAWM") clients who are able to meet certain criteria including, without limitation, financial and sophistication qualifications. Institutional investors only. All Key Clients Partners opportunities may not be available in all DeAWM locations. This material was prepared by a Sales or Trading function within Deutsche Bank Private Wealth Management, and was not produced, reviewed or edited by the Research Department of Deutsche Bank. These trading and investment ideas are not necessarily consistent with trading and investment ideas provided by other persons within Deutsche Bank Securities Inc. or with the views of the Research Department of Deutsche Bank. This is not an offer, recommendation or solicitation to buy or sell, nor is it an official confirmation of terms. It is based on information from sources believed to be reliable. No representation is made that it is accurate or complete or that any returns indicated will be achieved. Changes to assumptions may have a material impact on any returns detailed. Past performance is not indicative of future returns. Price and availability are subject to change without notice. Additional information is available upon request. This document is for Internal Use Only. It does not include the requisite disclosure for public distribution and should not be released to the public under any circumstance. 019262 091014 Deutsche Asset & Wealth Management For Internal Use Only EFTA01470808