DWS GmbH : Financial Reporting Document (DE)

Financial Data Supplement Q2 2021

July 28, 2021

FINANCIAL DATA SUPPLEMENT Q2 2021

Profit and Loss Statement and Key Performance Indicators

(in € m, unless stated otherwise)																						Q2 2021 vs.		Q2 2021 vs.		H1 2021 vs.
	FY 2019		Q1 2020		Q2 2020		H1 2020		Q3 2020		Q4 2020		FY 2020		Q1 2021		Q2 2021		H1 2021		Q1 2021		Q2 2020		H1 2020
Management fees and other recurring revenues		2,136		553		508		1,061		523		550		2,134		548		584		1,132		7 %		15 %		7 %
Performance & transaction fees and other non-recurring revenues	205	17	20	37	20	33	90	40	19	58	(53)%	(7)%	57 %
Other revenues		48		(46)		23		(23)		15		22		14		46		23		69		(51)%		(2)%		N/M
Total net revenues		2,389		524		551		1,074		558		605		2,237		634		625		1,259		(1)%		14 %		17 %
Revenue adjustments		-		-		-		-		-		-		-		-		-		-		N/M		N/M		N/M
Adjusted revenues		2,389		524		551		1,074		558		605		2,237		634		625		1,259		(1)%		14 %		17 %
Adjusted Compensation and benefits		783		162		192		354		167		180		701		206		196		402		(5)%		2 %		14 %
Adjusted General and administrative expenses		832		183		170		353		175		212		740		179		183		362		2 %		7 %		2 %
Adjusted cost base (excl. transformation charges)		1,615		345		362		707		342		393		1,442		385		379		764		(2)%		5 %		8 %
Severance and restructuring		43		6		18		24		3		6		33		6		1		6		(90)%		(97)%		(74)%
Transformation charges	-	-	-	-	-	-	-	6	7	13		N/M		N/M		N/M
Other cost adjustments		(0)		0		0		0		(0)		0		(0)		0		1		1		N/M		N/M		N/M
Total noninterest expenses		1,657		351		380		731		345		398		1,474		397		387		783		(2)%		2 %		7 %
Profit before tax		732		173		171		343		213		206		762		237		239		476		1 %		40 %		39 %
Adjusted profit before tax (excl. transformation charges)		774		179		189		368		215		212		795		249		247		496		(1)%		31 %		35 %
Income tax expenses		219		51		49		101		61		42		204		69		67		136		(2)%		36 %		35 %
Net income	512	121	122	243	151	164	558	169	172	340	2 %	41 %	40 %
Resources
Employees (full-time equivalent, at period end)		3,361		3,329		3,333		3,333		3,290		3,321		3,321		3,332		3,342		3,342		0 %		0 %		0 %
Assets (at period end)1		10,952		10,712		10,944		10,944		10,783		10,448		10,448		11,255		11,443		11,443		2 %		5 %		5 %
Management fee margin (in bps)		29.6		29.5		28.1		28.6		27.8		28.3		28.3		27.9		28.1		28.0		0.2 bps		0.0 bps		(0.1)bps
Assets under management (at period end, in € bn)		767		700		745		745		759		793		793		820		859		859		5 %		15 %		15 %
Net flows (in € bn)	26.1	(2.5)	8.7	6.2	10.5	13.6	30.3	1.0	19.7	20.7		N/M		N/M		N/M
Efficiency Ratios
Cost-income ratio		69.4 %		67.0 %		69.0 %		68.0 %		61.9 %		65.9 %		65.9 %		62.6 %		61.9 %		62.2 %		(0.7)ppt		(7.1)ppt		(5.8)ppt
Adjusted Cost-income ratio (excl. transfomation charges)	67.6 %	65.8 %	65.7 %	65.8 %	61.4 %	64.9 %	64.5 %	60.7 %	60.6 %	60.6 %		(0.1)ppt		(5.2)ppt		(5.1)ppt

Footnotes and definitions of additional performance measures are provided on page 3

1

FINANCIAL DATA SUPPLEMENT Q2 2021

Net flows and Assets under Management

in € bn
Net flows by asset class		FY 2019		Q1 2020		Q2 2020		Q3 2020		Q4 2020		FY 2020		Q1 2021		Q2 2021		AuM by asset class	FY 2019		Q1 2020		Q2 2020		Q3 2020		Q4 2020		FY 2020		Q1 2021		Q2 2021
Active Equity		(1.6)		1.7		1.0		(1.1)		0.2		1.8		0.1		(0.3)		Active Equity	96		79		91		91		97		97		105		110
Active Multi Asset		7.2		(0.7)		(0.6)		(1.2)		0.8		(1.8)		(0.5)		2.0		Active Multi Asset	58		53		55		55		59		59		60		64
Active SQI2		1.5		(1.5)		(0.2)		(1.0)		(0.4)		(3.1)		0.6		1.1		Active SQI2	71		63		66		67		69		69		71		74
Active Fixed Income		(7.8)		(5.1)		(4.4)		2.5		0.1		(6.8)		1.0		1.7		Active Fixed Income	234		217		219		221		220		220		221		223
Active Cash		(2.5)		3.6		6.3		4.3		5.3		19.5		(8.6)		5.4		Active Cash	57		64		69		71		75		75		68		73
Passive		19.1		(2.0)		6.5		6.3		5.9		16.6		7.4		7.9		Passive	156		133		154		161		179		179		197		213
Alternatives		10.2		1.5		0.0		0.8		1.7		4.0		1.0		1.8		Alternatives	96		91		92		92		93		93		99		103
DWS Group	26.1	(2.5)	8.7	10.5	13.6	30.3	1.0	19.7		DWS Group	767	700	745	759	793	793	820	859
Net flows by region																		AuM by region
Americas		3.5		1.8		(2.5)		8.0		1.6		8.8		(3.3)		5.5		Americas	199		194		195		199		198		198		203		211
EMEA excl. GY		6.5		(2.0)		9.5		(2.1)		6.7		12.1		(0.9)		4.1		EMEA excl. GY	191		168		202		192		206		206		211		221
Germany (GY)		13.6		(0.9)		0.9		3.0		4.5		7.5		3.9		9.9		Germany (GY)	335		302		308		328		346		346		361		380
Asia Pacific		2.4		(1.2)		0.7		1.6		0.8		1.9		1.3		0.2		Asia Pacific	41		37		40		41		43		43		46		47
DWS Group	26.1	(2.5)	8.7	10.5	13.6	30.3	1.0	19.7		DWS Group	767	700	745	759	793	793	820	859
Net flows by client channel																		AuM by client
																	channel
Retail		5.1		(0.4)		5.0		2.1		4.7		11.4		5.1		11.2		Retail	335		292		319		325		343		343		363		386
Institutional		21.0		(2.1)		3.7		8.5		8.9		18.9		(4.1)		8.5		Institutional	433		408		426		434		449		449		457		473
DWS Group		26.1		(2.5)		8.7		10.5		13.6		30.3		1.0		19.7		DWS Group	767		700		745		759		793		793		820		859
Total net flows		26.1		(2.5)		8.7		10.5		13.6		30.3		1.0		19.7
FX impact		6.9		5.2		(6.9)		(12.6)		(11.7)		(26.1)		12.8		(3.3)
Performance		75.1		(66.0)		43.2		15.0		31.6		23.7		13.5		21.9
Other		(2.8)		(4.1)		(0.1)		1.5		(0.0)		(2.8)		0.6		0.4
Total change in AuM		105.2		(67.4)		44.8		14.3		33.4		25.1		27.9		38.8

Footnotes and definitions of additional performance measures are provided on page 3

2

APPENDIX

Footnotes

1 IFRS reported balance sheet assets

2 Systematic and quantitative investments

3 Figures may not add up due to rounding differences

Definition of additional performance measures

Adjusted revenues

Adjusted revenues present net interest and non-interest income excluding non-recurring items, such as disposal gains and other material non-recurring income items. We use this metric to show revenues on a continuing operating basis, in order to enhance comparability against other periods.

Adjusted cost base

Adjusted costs, therefore both compensation and benefits and general and administrative expenses, are an expense measure we use to better distinguish between total costs (non-interest expenses) and our ongoing operating costs. It is adjusted for litigation, restructuring and severance costs as well as for material non-recurring expenses, including operational losses or transformational charges that are clearly identifiable one-off items which are not expected to recur.

Management fee margin

The management fee margin is calculated by taking the management fees and other recurring revenues for a period divided by average AuM for the same period. Annual average AuM are generally calculated using AuM at the beginning of the year and the end of each calendar month (e.g. 13 reference points for a full year). For periods of less than one year, management fees and other recurring revenues are annualized accordingly.

Assets under management

Assets under management (AuM) is defined as (a) assets held on behalf of customers for investment purposes and/or (b) client assets that are managed by us on a discretionary or advisory basis. AuM represents both collective investments (including mutual funds and exchange-traded funds) and separate client mandates. AuM is measured at current market value based on the local regulatory rules for asset managers at each reporting date, which might differ from the fair value rules applicable under IFRS. Measurable levels are available daily for most retail products but may only update monthly or even quarterly for some products. While AuM does not include our investment in Harvest (DWS Group owns a 30% stake in Harvest Fund Management Co. Ltd.), they do include seed capital and any committed capital on which we earn management fees. Any regional cut of AuM reflects the location where the product is sold and distributed (i.e. sales view), which may deviate from the booking center view reflected for the revenues.

Net flows

Net flows represent assets acquired or withdrawn by clients within a specified period. It is one of the major drivers of changes in AuM.

Cost-income ratio

Cost-income ratio (CIR) is the ratio our non-interest expenses bear to our net revenues.

Adjusted Cost-income ratio

Adjusted cost-income ratio is based on adjusted revenues and adjusted cost base

3