UBS Investor Day - Zurich Global Wealth Management ... · UBS Wealth Management—Acquisitions We...

UBS Investor Day - ZurichGlobal Wealth Management &Business Banking

May 31, 2006

Marcel Rohner, Chairman and CEO Global WM&BB

SECTION 1

Global Market Opportunity

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Source: UBS internal estimateNotes:1 Based on an expected savings rate plus market appreciation of existing assets. Each country's market appreciation is determined by assigning

expected asset class returns to that country's mix of assets. Income from equity dividends and bonds is reflected in the country's grosshousehold income, and thus is captured in the savings rate. "Retail" assets are excluded from this analysis. Liquid assets exclude real estate,private business interests, insurance, and other illiquid assets.

2 Growth for APAC excluding Japan would be 8.6%

Opportunity—Wealth Management market growth1

Europe Asia Pacific Americas Middle East / Africa

(CH

F tr

n)

10

20

30

40

50

60

70

49

2005

63

2010

APAC: 4.9%2

Europe: 5.8%

Americas: 5.1%

MEA: 5.9%

The global wealth management market is expected to growsignificantly in the next years

3

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Market fragmentation

Rest of Top 10: 18%

UBS Global WM: 3.5%

Rest of Market: 79%

Invested asset market share

High market fragmentation represents large growthopportunities

Source: Internal data, Wealth Partnership Review (as of end-2005)

4

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UBS, the world's largest wealth manager …

Client expectations

The same fundamental principals apply to serving wealthyprivate individuals everywhere in the world

… is in a unique position to meetincreasingly consistent client expectations

SECTION 2

UBS's Unique Position

6


Global AssetManagement

Investment BankGlobal Wealth

Management &Business Banking

WM Int.& CH

WM US

Corporate Centre

World's leadingprivate bankingand Swiss retail

banking business

Leading institutionalasset manager

and mutual fundprovider

Global client-drivensecurities, investmentbanking and private

equity

Co-ordination ofactivities of

Business Groups

Profile: ~70,000 employees in 1,500 offices in 50 countries

UBS is a highly integrated, truly global organization focusing onWealth Management and Investment Banking

Integrated business model

BusinessBanking

Product &Services

MarketStrategy&Develop.

ChiefFinancialOfficer

ChiefOperations

Officer Business Areas

Business Groups

UBS Group

ab

7


Balanced business mix1

% of 2005 Financial Businessesrevenue

44% Investment Bank

% of 2005 FinancialBusinesses profit before tax

42% Wealth andAsset Management

Balanced business mix – coverage of our clients' needs,world-wide

Notes:1 Financial Businesses only2 "Other" includes Corporate Center

Equities18%

WealthManagement US

13%

Investment Banking6%

Fixed Income,Rates andCurrencies

20%

Domestic Banking12%

WealthManagement

23%


6%

Other2

2% 34% 3% 18%

WM Int & CH WM US BB CH

Global WM & BB

9%


42%

InvestmentBank

-6%

Corp. Center

8


Global presence

70 Wealth Management Offices worldwide(additionally 111 locations in Switzerland)30 UBS Representative Offices346 Wealth Management US branch offices in the US

OsakaTokyo

BolognaBresciaFlorenceGenoaMilanNaplesPadovaRomeTorino

Sydney

Melbourne

BordeauxCannesLilleLyonMarseilleNantesParisStrasbourg

Mumbai

Johannesburg

Shanghai

Moscow

Warsaw

TaipeiHong Kong

Bangkok

Jakarta

ManamaSingapore

CairoNicosia Tel Aviv

BeirutIstanbul

MiamiNassau

New York

Mexico City

Coral Gables

Lima

Luxembourg

Buenos Aires

MontrealVancouver Toronto

Rio de Janeiro

Santiago de Chile

Bogota

Sao Paulo

Panama City Caracas

Montevideo

Switzerland

Abu Dhabi

Dubai

Lisbon

Bad HomburgBerlinBielefeldCologneDüsseldorfFrankfurtHamburgMunichOffenbachStuttgart

Athens

BarcelonaMadridMarbellaSevillaValencia

Monte CarloVienna

Punta del Este

Boca RatonMcAllenPhoenix

HoustonLos Angeles

San Francisco

Brussels

BirminghamBury St EdmundsEastbourneEdinburghLondonManchesterNewcastleSt. HelierTauntonWorthing

Stockholm

Beijing

Kuala Lumpur

Guangzhou

Surabaya

~557 offices all around the world …

Note:1 December 2005

… benefiting from cross-borderknowledge transfer and product distribution

9


One brandA strong and unified brand message

One firm - internally and externally

SECTION 3

Evidence of Growth

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UBS Global Wealth Management—ProfitabilityIn 1Q06, profitability again reached a new level

1,055

1,462

1,057

1,161 1,200

(200)

200

600

1,000

1,400

1Q03 1Q04 1Q05 1Q06 2Q03 2Q04 2Q05 3Q03 3Q04 3Q05 4Q03 4Q04 4Q05

(CH

Fm)

WM Int & CH WM US

First Quarter Second Quarter Third Quarter Fourth Quarter

12


Profit CAGR: 34%

Expenses CAGR: 9%

Operating Income CAGR: 19%

UBS WM Int & CH—Operational leverageIn the last three years, income strongly outgrew expensesleading to 30%+ profit growth per year

2,642

1,573

1,043

1,366

530

1,276

400

800

1,200

1,600

2,000

2,400

2,800

1Q03 3Q03 1Q04 3Q04 1Q05 3Q05 1Q06

Operating Income Expenses Pre-tax profit

(CH

Fm)

13


UBS Global Wealth Management—NNMNet new money for the last 12 months amounts to CHF 105bn

19.7

31.1

20.2

24.1

33.6

0

5

10

15

20

25

30

35

40

1Q03 1Q04 1Q05 1Q06 2Q03 2Q04 2Q05 3Q03 3Q04 3Q05 4Q03 4Q04 4Q05

(CH

Fbn

)

WM Int & CH WM US

First Quarter Second Quarter Third Quarter Fourth Quarter

14


Global WM CA productivity—NNM per CABetween 2003-05, NNM per CA increased each year and in everymajor unit

CAGR: 46%CAGR: N/A

CAGR: 27%CAGR: 30%

CAGR: 22%

CAGR: 13%

WMI

1.7 2.43.6

0.02.2

4.4

13.0

15.4

21.0

11.3

14.2

19.0 17.8 18.2

26.7

29.3

31.2

37.2

0

10

20

30

40

(CH

Fm)

WM US WM CH WMI WMI (w/o EWM) EWM APAC

2003

2004

2005

2003

2004

2005

2003

2004

2005

2003

2004

2005

2003

2004

2 005

2003

2004

2 005

15


WM Int & CH—Client segment development

Income Assets

Core Affluent High Net Worth KeyClients Total

Over the last 12 months, we grew 20%+ in all major clientsegments

127%

130%

136%

128%

95%

100%

105%

110%

115%

120%

125%

130%

135%

1Q05 2Q05 3Q05 4Q05 1Q06

121%

125%

136%

127%

95%

100%

105%

110%

115%

120%

125%

130%

135%

1Q05 2Q05 3Q05 4Q05 1Q06

16


UBS Wealth Management—AcquisitionsWe bought the wealth management operations of a string offirst rate firms which shows our success in that business

UBS Wealth Management

1996 1998 2003 20052004

Julius Bär North America

Standard Chart. (Int. PB)

Lloyds (France)

Merrill Lynch (Germany)

Laing & Cruickshank / SGH

Etra SIM / Dolfi

Amex Luxembourg

Bank of America (Int. PB)

Sauerborn Trust

Total acquired assets:CHF 120 billion

2006

Piper Jaffray

Dresdner Latin America

Schröder Mün. Hengst

Strategic fit

Cultural fit

Financialattractiveness

Acquisitioncriteria

SECTION 5

Global WM&BB Growth Strategy

18


Executing—UBS Client ExperienceThe UBS Client Experience helps us to meet our clients' needs

ProcessesClient

relationshipsClient

Experience

It defines the relationship to our clientsas well as our internal business processes

19


Business Priorities

Perfecting ourclient experience

Industry Leadershipin Efficiency

FinancialGoals

Return on Assets

Total InvestedAssets

Net New Money

Loans

Cost / IncomeRatio

Financial Drivers

Profitbefore Tax

Returnon Assets

InvestedAssets

Loans

Personnelexpenses

Otherexpenses

Totalexpenses

Income

Business goals and business prioritiesAll activities are geared to promote our key value drivers andhence support the achievement of our strategic goals

Risk Management

20


Global WM&BB strategyWe will grow by focusing on our business priorities

Consistent implementation is our challenge

Industryleadership

in efficiencyRisk management

Leadership

Growth orientation

Perfectingour

client experience

Identify with UBS

21


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