UBS Product Day - Zurich Business Banking Switzerland · From SME to Multinationals Investment Advisory Structured & Corp. Fin. Leasing & Factoring Corporates ... Euro < 26 membership

UBS Product Day - ZurichBusiness Banking Switzerland

June 1, 2006

Hans-Ulrich Meister, Head of Business Banking

1

Q:\GROUP-COMMS\Investor Relations\4 Investor Day\Investor Day 2006\Presentations\Final_presos\Product Day\6_Preso_Meister.ppt

UBS Group

UBS Group

CorporateCenter

Investment Bank

Global WealthManagement &

BusinessBanking

Global AssetManagement

WealthManagementInternational

WealthManagement

US

Chief FinancialOfficer

ChiefOperations

Officer

WealthManagementSwitzerland

BusinessBanking

Market Strategyand

Development

Products andServices

Our Organization

2


Financial Businesses pre-tax results 2005Business Banking contributed 18% to the Financial Businessesresults…

CH

F b

n

12.2

6.7

2.2BB

1.1

5.2

-0.7-2

2

4

6

8

10

12

14

UBSFinancial

Businesses

GlobalWM&BB

Global AssetManagement

InvestmentBank

CorporateCenter

0

…and 33% to Global WM&BB results

3


Private & Corporate Savings / DepositsPrivate & Corporate Loans

Credit Cards Mortgages

UBS21%

Credit Suisse15%

Cantonal Banks 33%

RegionalBanks 10%

Other21%

Source:SNB (259 banks reporting), UBS (booking center CH)1 Cooperation of Cantonal Banks, Regional Banks, Raiffeisen Bank and Migros Bank

UBS22%

Credit Suisse13%

Cantonal Banks 35%

Other19%

RegionalBanks 11%

High market share in Switzerland

UBS30%

VISECA1

27%

Corner17%

Diners Club1%

Credit Suisse25%

UBS23%

Credit Suisse10%

Cantonal Banks 33%

Other23%

RegionalBanks 11%

Strong market share across all major product categories

4


♦ From SME toMultinationals

♦ Investment Advisory♦ Structured & Corp. Fin.♦ Leasing & Factoring

Corporates

♦ Retail♦ Mass Affluent♦ Personal Banking

Services

Private Clients

♦ Recovery♦ Dormant Assets

Other

♦ Market & Sales Support(also for WM CH)

Business Banking

Business Banking is a heterogeneous business area

WM CHClient Shifts

Infrastructure

WMInternational

Client Shifts

Global AMPlacement of

Funds /Mandates

IBCorporate

Finance

We provide a complete set of banking and securities services…

…and contribute significantly to other Business Area results

SECTION 1

Private Clients

6


Source: Swiss Federal Statistical Office, dmplus

4%

9%

68% 3%

16%

>1'000'000

500-1'000'000

250-499'000

100-249'000

<100'000

Swiss households3.3m households in Switzerland in 2005 –according to wealth class

7


Cumulative gross shifts of client assets to Wealth Management

1Q 2006:CHF 2.4 bn

1.3

3.1

4.96.0

8.0

10.0

12.513.4

15.3

17.1

19.6

22.0

24.5

5

10

15

20

25

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

CH

F b

n

2003: CHF 6.0 bn 2004: CHF 7.4 bn 2005: CHF 8.6 bn

0

Client shiftsCHF 24.5 bn assets were shifted to Wealth Management since2003

8


Private mortgages with stable market share as UBS grows inline with market

1 Since 4Q04, SNB-Time Series includes 14 additional Raiffeisen Banks with mortgage volumes of CHF 7.5bn

Private mortgages in SwitzerlandU

BS

mar

ket

shar

e(%

)

26.20%26.03%26.16% 25.84% 26.25%

3%

1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06

0

1

2

27

26

25

7.5% (ytd 2003)

5.2% (ytd 2004)6.9% (ytd 2003)

6.6% (ytd 2004)

5.8% (ytd 2005)

7.3% (ytd 2005)

1.28%

1.48%

market growth UBS growth market share UBS

9


Young Client Initiative

Offering♦ product bundle «Generation»

♦ product bundle «Campus»

Additional Benefits♦ special conditions for iPods and

iTunes Song Cards

♦ Euro < 26 membership (card)

♦ bonus scheme (UBS Key Club)

♦ sponsoring & events

Advisory Services♦ start check-up

♦ finance check-upiTunesSong Cards

iPod Sets

Euro < 26membership

Respect

♦ equitable

♦ friendly & fair treatment

Authenticity

♦ clear & logical

♦ honest & straightforward

Offering♦ according to their needs

♦ attractive add-ons

♦ being respected

♦ demonstrating dedication

Attention

We focus on what young people want…

The UBS young client initiative acquired close to 25,000 newclients since launch in May 05 until the end of last year

SECTION 2

Corporate Clients

11


Source: Swiss Federal Statistical Office, Corporate demography 2003

26.3%

21.2%

8.8%10.5%

33.2%0.7%1.2%

87.9%

0.3%

9.9%

Corporations in Switzerland

Allocation according tonumber of employees

Allocation of employees accordingto «size» of corporation

>250 employees

100-249 employees50-99 employees

10-49 employees

<9 employees

>250 employees100-249 employees50-99 employees

10-49 employees<9 employees

Switzerland has about 335,000 corporations

More than 136,000 Swiss corporations have a bankingrelationship with UBS, 95% thereof are SME

12


♦ cash flow based view / debt capacity

♦ transparent

♦ risk adjusted pricing

♦ return on equity

♦ rating system

♦ four eyes principle

Present

♦ asset based view

♦ intransparent

♦ cross-subsidization

♦ volume objectives

♦ name lending

Business financingThe business risks are substantially determined by the financialrisk capacity of a company

Past

13


Improved credit portfolioConsistent reduction of credit exposure in the RecoveryPortfolio over the past seven years

3.3

0

10

20

30

1997 1998 1999 2000 2001 2002 2003 2004 2005

Rec

ove

ry e

xpo

sure

(C

HF

bn

)

1997 and before 1998 1999 2000 2001 2002 2004 2005

14


Institutional investment advisoryBusiness Banking is generating mandates for Global AssetManagement…

15.6

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

0.8 1.0

3.3 3.6

5.86.7

7.3 7.1

10.010.5

13.012.5

0

2

4

6

8

10

12

14

16

CH

F b

n

Cumulative net new mandates

…net CHF 15.6bn mandates since 2003

SECTION 3

Results

16


Business Banking CH—Performance before taxIn

dex

ed d

evel

op

men

t, 1

Q03

= 1

00

Business Banking as reported Business Banking adjusted for shifts/recovery

BB supports the growth strategy by providing a stable and highlevel contribution

80%

90%

100%

110%

120%

130%

140%

150%

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

compound annual growth rate 10.4%compound annual growth rate 4.1%

17


Questions………

Documents

UBS Product Day - Zurich Business Banking Switzerland · From SME to Multinationals Investment Advisory Structured & Corp. Fin. Leasing & Factoring Corporates ... Euro < 26 membership