such as research and development, and brand advertising. Return on Equity Does not represent a real return (for example, depreciation is not charged economically and asset life is inconsistent.) Market capitalization Only includes the value of the equity, ignoring debt and other calls on shareholders. Net income Does not reflect the real level of profitability. Source: Deutsche Bank CROCI team Deutsche Assel The CROCI valuation methodology Main differences between accounting and economic data Accounting data Economic data Net capital invested Is historical cost accounted and ignores intangible economic assets, Is adjusted for inflation, and also includes capitalized intangibles, such as research and development, and brand advertising. CROCI Includes cash return over the life of the assets. Depreciation is charged economically, with similar assets having similar lives. Enterprise value Includes financial debt and other liabilities, such as leases, warranties and pension underfunding. Economic earnings Offers a true and comparable measure of profitability For institutional use only I Not for public viewing or distribution & Wealth Management Investment products: No bank guarantee I Not FDIC Insured I May lose value 3 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) CONFIDENTIAL DB-SDNY-0101874 SDNY_GM_00248058 EFTA01447284