Report of the Supervisory Board

The financial crisis has presented great challenges to the global financial system. The insolvency of a large U.S. investment bank in September 2008 deeply affected the markets. Governments, central banks, supranational institutions and the financial industry itself have reacted with a series of measures to the crisis, however, the markets have still not fully recovered.

Deutsche Bank was also affected by this development. Unprecedented market conditions revealed weaknesses in some of the bank’s businesses. For this reason, their strategic focus and structure were adjusted. Substantial steps were taken and are already showing initial results. Deutsche Bank’s strategy as a leading investment bank with a strong private clients franchise has proven fundamentally sound during this difficult period. We would like to thank the Management Board and all our staff very much for their great personal dedication.

Last year, the Supervisory Board extensively discussed the bank’s economic and financial development, its operating environment, risk position, planning and internal control systems. We held in-depth discussions with the Management Board on the bank’s strategy and continued implementation of the measures on the management agenda. The Management Board reported to us regularly, without delay and comprehensively on business policies and other fundamental issues relating to management and corporate planning, the bank’s financial development and earnings situation, the bank’s risk, liquidity and capital management as well as transactions and events that were of significant importance to the bank. We advised the Management Board and monitored its management of business. We were involved in decisions of fundamental importance. To be noted here is our participation in Deutsche Postbank AG, with which we intend to further strengthen our stable businesses. Between meetings, we were informed in writing of important matters. Resolutions were passed, when necessary between the meetings, by means of telephone conference or by circulation procedure. Important topics and upcoming decisions were also dealt with in regular discussions between the Chairman of the Supervisory Board and the Chairman of the Management Board. Several telephone conferences took place on the respectively current situation as well as two information events with the full Supervisory Board in September 2008 and January 2009 concerning the acquisition of the participation in Deutsche Postbank AG.