DWS GmbH : GROUP –Q3 2020 RESULTS

OCTOBER 28, 2020

DWS GROUP - Q3 2020 RESULTS

SET TO DELIVER MEDIUM-TERM TARGETS IN 2020

Continued business strength and resilience in unprecedented times

KEY ACHIEVEMENTS

EXPECTED TO DELIVER AGAINST PROMISES AHEAD OF SCHEDULE

• 9M adj. Cost-Income-Ratio of 64.3% below our medium-term target of 65%, expected to be achieved already in 2020

ESG MOMENTUM SUPPORTS STRONG NET FLOWS

• 9M 2020 net flows of ~€17bn incl. almost €11bn in Q3 leading to an annualized net flow rate of 2.9% ahead of last year despite COVID-19
• ESG-dedicatedfunds attracted more than 1/3 of net flows YTD 2020

STRATEGIC PARTNERSHIPS EXPANDED

• Long-termextension of the successful cooperation with Zurich until 2032
• New partnership with Northwestern Mutual Capital's private markets business

ORGANIZATIONAL CHANGES IMPLEMENTED

• Dedicated Product Division established and operational
• New holistic and globally integrated leadership team in place

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Investor Relations	October 28, 2020

Q3 2020 KEY FINANCIAL HIGHLIGHTS

_Adjusted profit before tax was €215m, 14% increase q-o-q driven by ongoing cost decline _Adjusted cost income ratio improved further to 61.4% in Q3

_Strong net flows of €10.5bn in Q3 demonstrate the resilience of our diversified business model

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FINANCIAL PERFORMANCE SNAPSHOT - Q3 2020

AUM (€BN)

Net flows	6.2	8.7	10.5
(€bn)
Net flows	5.8	2.4	6.2
ex Cash
		+1%		+2%
(€bn)
	752	745	759

Q3-19

Q2-20

Q3-20

ADJUSTED REVENUES (€M)

Manage-
ment fee 29.1	28.1	27.8
margin
(bps)	(0)%			+1%
560	551	558

Q3-19

Q2-20

Q3-20

ADJUSTED COSTS (€M)						ADJUSTED PROFIT BEFORE TAX (€M)
Adjusted	69.6	65.7		61.4
CIR (%)					+27%			+14%
			(12)%			(5)%
		389											215
		362		342
					170	189

Q3-19

Q2-20

Q3-20

Q3-19

Q2-20

Q3-20

Note: Throughout this presentation totals may not sum due to rounding differences

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MARKET ENVIRONMENT

EQUITIES (%)

125

115

105

95

85

75

65

S-DAX

DAX

MSCI World

Eurostoxx 50

Oct Nov Dec Jan

Feb Mar

Apr May Jun

Jul Aug Sep

2019

2020

FX (€/$)

1.18

1.15

1.12

1.09

1.06

	Oct Nov Dec Jan Feb Mar	Apr May Jun Jul Aug Sep
2019			2020

VOLATILITY (VIX INDEX)		INTEREST RATES, YIELD (%)
88			2.5	10Y Bund	10Y Treasury
			2	Barclays Global Aggregate	30Y Euro Swap
68			1.5
			1
48			0.5
			0
28			-0.5
8			-1
Oct Nov Dec Jan Feb	Mar Apr May Jun Jul Aug Sep	Oct	Nov Dec Jan Feb Mar	Apr May Jun Jul Aug Sep
	2019	2020		2019	2020
Source: Bloomberg
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Investor Relations	October 28, 2020

AUM DEVELOPMENT

AUM DEVELOPMENT DETAIL (€BN)

Q3 HIGHLIGHTS

767		5														AuM increased by €14bn to
	(2)										11		15	1	759	€759bn in Q3
								43	0	745						− Main driver has been positive
											(13)				net flows of €10.5bn
						9										− Positive market performance
					700										of €15bn, almost offset by
			(66)			(7)									unfavorable €/$ exchange
			(4)											rate
FY 2019	Net flows	1	Market impact		Q1 2020	Net flows	1	Market impact		Q2 2020	Net flows	1 FX	Market impact		Q3 2020
FX	Other	FX	Other	Other

1 Represents FX impact from non-Euro denominated products; excludes performance impact from FX

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Q3 2020 NET FLOWS

NET FLOWS BREAKDOWN

	By asset class (€bn)				Q3-19	Q2-20			Q3-20
	Active Equity					(1.1)		1.0			(1.1)
	Active Multi Asset				3.4		(0.6)			(1.2)
	Active SQI1					(0.1)		(0.2)			(1.0)
	Active Fixed Income				(1.3)		(4.4)			2.5
	Passive						3.2		6.5			6.3
	Alternatives					1.6		0.0			0.8
	Total ex Cash					5.8		2.4			6.2
	Cash						0.4		6.3			4.3
	Total						6.2		8.7			10.5
	AUM BY ASSET CLASS					AUM BY REGION & CLIENT TYPE
	Alternatives						APAC
		12%							5%			Americas
				Active Fixed
							26%
				Income
Passive
€759bn	29%	Germany				Retail
21%	€759bn
							43%				43%
Active Multi			Active Equity
		12%							EMEA
	Asset
	Cash					Institutional	(ex Germany)
7%	Active SQI1
		9%	9%				57%			25%

1 Systematic and Quantitative Investments

Q3 HIGHLIGHTS

• Strong net flows of €10.5bn in Q3 with more than €2bn of net flows into ESG-dedicated funds
• Passive continued strong flows in equity related products as well as fixed income ETFs supporting our #2 ranking in European ETPs with over 14% market share YTD
• Fixed Income turned positive, reflecting institutional mandate wins
• Strong inflows in Cash, particularly in the US
• Alternatives flows were driven by Real Estate and Liquid Real Asset classes
• SQI and Multi Asset were dominated by single institutional mandate redemptions
• Active Equity outflows were mainly driven by mutual funds partly offset by inflows into ESG products

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Investor Relations	October 28, 2020

POSITIVE CONTRIBUTION OF NEW FUND LAUNCHES

PRODUCTS ARE JOINTLY DEVELOPED WITH CLIENTS AND PARTNERS

CUMULATIVE FLOWS OF NEW FUNDS IN THE PERIOD FROM Q2 2018 ONWARDS (IN €BN)2

Non-ESG products	ESG products
Overall					Cumulative flows by asset class
management fee	~39
margin of new
funds (bps)				17.3
						Active Fixed
			14.3			Income
					14%
						Active Equity
					Alternatives
						4%
	11.7				29%
			11.3
						Active SQI
9.7			9.3			€17.3bn	0%
					Active Multi
	7.9						Asset
6.7							10%
						Passive
				6.0		42%
			5.0
	3.8
3.0
Q4-19	Q1-20		Q2-20	Q3-20

Q4 2020 FUND LAUNCHES PIPELINE1

EXAMPLES

• DWS Invest II Euro Bonds Conservative

Fixed

Income

• DWS Invest Short Duration Income

− AL Global Dynamik

Multi-Asset

• Xtrackers S&P 400 ESG ETF

− Xtrackers S&P 600 ESG ETF	Passive

• Several Xtrackers MSCI and S&P Swap UCITS Funds

Note: Not all DWS products and services are offered in all jurisdictions and availability is subject to local regulatory restrictions and requirements 1 Subject to demand assessments, approvals and successful transaction execution 2 Excluded ESG converted funds

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Investor Relations	October 28, 2020

REVENUE DEVELOPMENT

ADJUSTED REVENUES (€M)

Other revenues

Performance and transaction fees

Management fees and other recurring revenues

	29.1	28.1			27.8				Management fee
						margin (bps)
EoP1	752			745					759				xx	AuM (€bn)
Avg2	736		728				748
					(0)%								+1%
	560									558
	551
		21									15
									23
										20
						20

540

508

523

(1)
Q3-19	Q2-20	Q3-20

Q3 HIGHLIGHTS

• Total adjusted revenues increased 1% q-o-q to €558m
• Management fees and other recurring revenues increased 3% q-o-q as a result of higher average AuM during the quarter
• Management fee margin slightly declined to 27.8bps mainly driven by asset class mix
• Harvest contributed €15m in Q3 and €46m YTD 2020 to Other revenues

1 End of period	2 Monthly average
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COST DEVELOPMENT

ADJUSTED COSTS (€M)1

Compensation & Benefits

General & Administrative Expenses

Adjusted	69.6	65.7	61.4
CIR (%)
		(12)%	(5)%
	389
		362	342
	180
		192	167
	209	170	175
	Q3-19	Q2-20	Q3-20

Q3 HIGHLIGHTS

• Total adjusted costs of €342m, down 5% compared to Q2
• Adjusted compensation & benefits were positively impacted by a decrease in value of formally granted deferred compensation as well as declining fixed compensation costs
• Adjusted general & administrative expenses slightly above prior quarter due to higher technology and volume related costs
• YTD 2020 adj. CIR at 64.3%

1 Non-interest expenses adjusted for severance payments, restructuring activities and litigation

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Q3 2020 CONCLUSION

• Strong financial performance in Q3, with adj. profit before tax increasing by 14% q-o-q
• Efficiency gains as part of €150m cost initiatives firmly on track and delivery of YTD adj. CIR of 64.3%
• Positive flow momentum in Q3 supported by our diversified business model and intense client engagement, with strong ESG contribution

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OUTLOOK

Initiating the next phase of our corporate journey towards standalone

CONTINUE TO DELIVER…

CONFIDENT WE WILL ACHIEVE OUR MEDIUM- TERM TARGETS AHEAD OF SCHEDULE

• despite volatile markets and pandemic-induced environment

COMMITTED TO

SUSTAINING

COMPETITIVE COST-

INCOME-RATIO

• at least at achieved levels

MANAGE COVID-19

ENVIRONMENT FOR

CLIENTS AND STAFF

• AND TRANSFORM TO CAPTURE FUTURE GROWTH OPPORTUNITIES
• Establish an AM-focused core platform and framework
• Enrich investment platform and processes with Artificial Intelligence
• Develop market-leading ESG product suite
• Invest in leadership position in growth areas and segments
• Assess new opportunities in APAC, especially in China

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APPENDIX

NEWLY ESTABLISHED PRODUCT DIVISION

SETUP ACROSS THE ENTIRE PRODUCT VALUE CHAIN ENSURES SUPERIOR PRODUCT QUALITY AND FASTER TIME-TO-MARKET

POSITION OUR PRODUCT SUITE AS THE KEY DIFFERENTIATOR

• Product innovation an even stronger core component of DWS' DNA

PRODUCTS ARE PART OF DWS DNA

TOTAL	30	1	# OF NEW
	LAUNCHED FUNDS
2,339 PRODUCTS			YTD 2020
Including institutional
& retail funds			thereof:

• More proficient and agile delivery in our entire product value chain
• Speed up time-to-market and adapt to evolving active fund flows
• Stringently align product strategy with the investment and client strategy
• Accelerate focus on ESG criteria and client solutions

10 NEW ESG FUNDS

YTD 2020

2020 EXTENDED PARTNERSHIPS

Joint development of innovative	Strategic partnership to identify
investment products and	and develop private market
services that use the AI engine	opportunities
- January 2020	- July 2020

Strengthening opportunities in the unit-linked and life insurance business in Italy

• October 2020

Continue their cooperation in fund sales and development of unit-linked insurance products

• September 2020

1 Share class launches are not considered

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DWS DETAILED FINANCIALS

PROFIT & LOSS STATEMENT AND KEY PERFORMANCE INDICATORS (€M, UNLESS STATED OTHERWISE)

Profit & Loss

Other Key

Performance

Measures

	Q3 2020	Q2 2020		Q3 2019	9M 2020	9M 2019			Q3 2020 vs		Q3 2020 vs		9M 2020 vs
				Q2 2020		Q3 2019		9M 2019
Management fees and other recurring revenues	523	508	540			1,584	1,585			3%	(3)%	(0)%
Performance and transaction fees	20	20	21			57	97	(2)%	(5)%	(41)%
Other revenues	15	23	(1)			(9)	19			N/M		N/M		N/M
Net revenues	558	551	560			1,632	1,702	1%	(0)%	(4)%
Revenue adjustments
Adjusted revenues	558	551	560			1,632	1,702			1%	(0)%	(4)%
Compensation & Benefits	(170)	(200)	(185)			(535)	(596)			(15)%	(8)%	(10)%
General & administrative expenses	(175)	(173)	(210)			(530)	(607)	1%	(16)%	(13)%
Restructuring activities	0	(7)	(2)			(10)	(31)			N/M	(124)%	(68)%
Total noninterest expenses	(345)	(380)	(396)			(1,076)	(1,234)	(9)%	(13)%	(13)%
Cost adjustments	3	18	7			27	40
Adjusted cost base	(342)	(362)	(389)			(1,049)	(1,194)			(5)%	(12)%	(12)%
Profit before tax	213	171	163			556	468	24%	30%	19%
Adjusted profit before tax	215	189	170			583	508			14%	27%	15%
Net income	151	122	116			394	330	25%	31%	19%
Reported CIR	61.9%	69.0%	70.8%			65.9%	72.5%			(7.1)ppt		(8.9)ppt		(6.6)ppt
Adjusted CIR	61.4%	65.7%	69.6%			64.3%	70.1%			(4.4)ppt		(8.2)ppt		(5.9)ppt
FTE (#)	3,290	3,333	3,415			3,290	3,415			(1)%	(4)%	(4)%
AuM (in €bn)	759	745	752			759	752	2%	1%	1%
Net flows (in €bn)	10.5	8.7	6.2			16.7	12.9
Net flows (% of BoP AuM - annualized)	5.6%	5.0%	3.4%			2.9%	2.6%
Management fee margin (bps - annualized)	27.8	28.1	29.1			28.3	29.8

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RECONCILIATION FROM IFRS TO ECONOMIC VIEW

Q3 2020 BALANCE SHEET (€BN)

	IFRS	Consolidated	DB Vita	Economic
	consolidated	Funds	and pending	View
Cash and bank balances	2.4				2.4
Financial assets at FVPL	2.9	1 1.2	2	0.5	1.1
Financial assets at OCI	0.2				0.2
Other investments	0.3				0.3
Property and equipment	0.2				0.2
Tax assets	0.2				0.2
Intangible assets	3.6				3.6
Other assets	1.0		3	0.4	0.6
Total assets	10.8	1.2		0.9	8.6
Liabilities
Other short-term borrowings	0.1				0.1

HIGHLIGHTS

€2.1bn adjustments comprise:

1- Consolidated Funds (€1.2bn)

• DWS reports individual assets and liabilities of mainly guaranteed funds that it controls under IFRS
• Fund assets and P&L still belong solely to the investors, not DWS
• DWS does not consolidate where third party investors hold > 50% of units

2- DB Vita (€0.5bn)

• Investment contract related financial assets held to back unit linked contracts offered by DB Vita S.A. (which is our specialist entity for unit-linked insurance products)

Tax liabilities	0.3					0.3	‒	Offset with financial liabilities due to
					investors holding the unit linked
Financial liabilities at FVPL	0.7			2 0.5	0.2		insurance contracts
Other liabilities	2.7	1	1.2	3	0.4	1.1	- Pending Items (€0.4bn)
		3
Total liabilities	3.8		1.2		0.9	1.6	‒	Settlement balances driven by
Equity	7.0					7.0		investments for institutional clients
					in DWS Investment S.A.
Total liabilities and equities	10.8		1.2		0.9	8.6
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HISTORICAL NET FLOWS AND AUM DEVELOPMENT

in € bn
Net flows by asset class		FY 2018		Q1 2019		Q2 2019		Q3 2019		Q4 2019		FY 2019		Q1 2020		Q2 2020		Q3 2020		AuM by asset class	FY 2018		Q1 2019		Q2 2019		Q3 2019		Q4 2019		FY 2019		Q1 2020		Q2 2020		Q3 2020
Active Equity	(7.3)	(0.2)	(0.7)	(1.1)	0.3	(1.6)	1.7	1.0	(1.1)		Active Equity	77	88	90	91	96	96	79	91	91
Active Multi Asset	(3.8)	0.5	0.0	3.4	3.3	7.2	(0.7)	(0.6)	(1.2)		Active Multi Asset	46	49	50	54	58	58	53	55	55
Active SQI1		0.2		(0.1)		(0.8)		(0.1)		2.5		1.5		(1.5)		(0.2)		(1.0)		Active SQI1	63		67		68		70		71		71		63		66		67
Active Fixed Income	(16.5)	(1.6)	(3.7)	(1.3)	(1.2)	(7.8)	(5.1)	(4.4)	2.5		Active Fixed Income	227	233	232	240	234	234	217	219	221
Active Cash	(3.2)	(4.9)	3.6	0.4	(1.6)	(2.5)	3.6	6.3	4.3		Active Cash	58	54	57	59	57	57	64	69	71
Passive	7.5	6.2	3.5	3.2	6.2	19.1	(2.0)	6.5	6.3		Passive	112	130	136	145	156	156	133	154	161
Alternatives	0.8	2.6	2.2	1.6	3.7	10.2	1.5	0.0	0.8		Alternatives	79	85	88	93	96	96	91	92	92
DWS Group	(22.3)	2.5	4.2	6.2	13.2	26.1	(2.5)	8.7	10.5		DWS Group	662	704	719	752	767	767	700	745	759
Net flows by region																				AuM by region
Americas	(21.3)	(0.1)	3.2	2.0	(1.6)	3.5	1.8	(2.5)	8.0		Americas	177	188	192	205	199	199	194	195	199
EMEA excl. GY	(1.5)	1.9	1.7	(0.7)	3.7	6.5	(2.0)	9.5	(2.1)		EMEA excl. GY	164	175	180	185	191	191	168	202	192
Germany (GY)	3.0	1.2	1.1	2.4	8.9	13.6	(0.9)	0.9	3.0		Germany (GY)	286	305	312	323	335	335	302	308	328
Asia Pacific	(2.6)	(0.4)	(1.9)	2.5	2.2	2.4	(1.2)	0.7	1.6		Asia Pacific	35	37	35	39	41	41	37	40	41
DWS Group	(22.3)	2.5	4.2	6.2	13.2	26.1	(2.5)	8.7	10.5		DWS Group	662	704	719	752	767	767	700	745	759
Net flows by client																				AuM by client
channel																				channel
Retail	(9.5)	(0.8)	0.9	0.4	4.6	5.1	(0.4)	5.0	2.1		Retail	291	311	317	328	335	335	292	319	325
Institutional	(12.8)	3.3	3.3	5.8	8.6	21.0	(2.1)	3.7	8.5		Institutional	372	394	402	424	433	433	408	426	434
DWS Group	(22.3)	2.5	4.2	6.2	13.2	26.1	(2.5)	8.7	10.5		DWS Group	662	704	719	752	767	767	700	745	759
Total net flows	(22.3)	2.5	4.2	6.2	13.2	26.1	(2.5)	8.7	10.5
FX impact	12.6	6.1	(4.6)	13.2	(7.9)	6.9	5.2	(6.9)	(12.6)
Performance	(28.0)	34.8	14.9	13.2	12.2	75.1	(66.0)	43.2	15.0
Other	0.2	(1.0)	0.4	0.1	(2.2)	(2.8)	(4.1)	(0.1)	1.5
Total change in AuM	(37.5)	42.3	14.9	32.7	15.3	105.2	(67.4)	44.8	14.3

1 Systematic and Quantitative Investments

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Q3 2020 DETAILED INVESTMENT PERFORMANCE

All figures in %1		1Y	3Y	5Y
	Equity	74%	69%	66%
	Multi Asset2	0%	9%	9%
Active Retail	SQI2	57%	71%	72%
	Fixed Income	57%	71%	96%
	Cash2	93%	100%	100%
	Total	68%	71%	75%
	Equity2	75%	65%	62%
	Multi Asset	35%	40%	54%
Active Institutional	SQI	72%	76%	82%
Fixed Income	76%	77%	79%
	Cash2	45%	94%	100%
	Total	72%	75%	77%
	Equity	74%	68%	65%
	Multi Asset	30%	35%	46%
Active Total	SQI	69%	75%	81%
Fixed Income	73%	76%	82%
	Cash	69%	97%	100%
	Total	70%	73%	76%
	Direct Real Estate	83%	81%	85%
Alternatives	Liquid Real Assets	86%	98%	91%
Other Alternatives2	0%	45%	0%
	Total	67%	78%	74%
Total DWS		70%	74%	76%

1 Aggregate asset-weighted gross outperformance of Active and Alternatives products that have benchmark spreads (gross and net) available over respective periods (Active and Liquid Real Assets as of Sep 30, 2020 and Direct Real Estate and Other Alternatives as of Jun 30, 2020) 2 <10bn AuM with BM and hence ratios not representative

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CONTACT DETAILS

INVESTOR RELATIONS

Oliver Flade		Jana Zubatenko		Maneli Farsi
[e-mail]		[e-mail]		[e-mail]
[e-mail]		[e-mail]		[e-mail]
Tel: [phone]		Tel: [phone]		Tel: [phone]

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CAUTIONARY STATEMENTS

This presentation contains forward-looking statements. Forward-looking statements are statements that are not historical facts; they include statements about our beliefs and expectations and the assumptions underlying them. These statements are based on plans, estimates and projections as they are currently available to the management of DWS Group GmbH & Co. KGaA. 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.

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 revenues and in which we hold a substantial portion of our assets, the development of asset prices and market volatility, the implementation of our strategic initiatives, the reliability of our risk management policies, procedures and methods, and other risks.

This document contains alternative performance measures (APMs). For a description of these APMs, please refer to the Q3 2020 Financial Data

Supplement, which is accompanying this presentation and available at https://group.dws.com/ir/reports-and-events/financial-results/

Copies of the financial report are readily available upon request or can be downloaded from https://group.dws.com/ir/reports-and-events

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