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
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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)
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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
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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
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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%
Global AssetManagement
6%
Other2
2% 34% 3% 18%
WM Int & CH WM US BB CH
Global WM & BB
9%
Global AssetManagement
42%
InvestmentBank
-6%
Corp. Center
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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
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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
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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)
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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
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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
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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
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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
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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
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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
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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
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Questions…