Ubs Group Ag · SIX:UBSG
Ubs — UBS AG (Amna, Amnd, Amtr, Amub, BDCX, BDCZ, Cefd, DJCB, Esus, Fedl, HDLB, Ifed, Iwdl, Iwfl, Iwml, Mlpb) — Q1 2013 Earnings Presentation
31 slides from Ubs's earnings presentation, Apr 30, 2013
Slide 1: First quarter 2013 results
SUBS First quarter 2013 results April 30, 2013
Slide 2: Cautionary statement regarding forward-looking statements
Cautionary statement regarding forward-looking statements This presentation contains statements that constitute "forward-looking statements,” including but not limited to management's outlook for UBS's financial performance and statements relating to the anticipated effect of transactions and strate
Slide 3: 1Q13 Key achievements
1013 —Key achievements Strong first quarter 2013 results Profit before tax CHF 1,447 million, adjusted profit before tax CHF 1,901 million Net profit attributable to UBS shareholders CHF 988 million Net new money into our wealth management businesses totaled CHF 23.6 Basel Ill fully applied CET1 rat
Slide 4: Reduced capital needs aligned with our business mix
Reduced capital needs aligned with our business mix Equity attributed to business divisions and adjusted profit before tax Oe contribution’ on 1Q12 : H 1913 H Attributed PBT contribution | | Attributed PBT contribution equity’ CHF 2.1 billion H | equity? CHF 2.4 billion pro-forma? IE Wealth manageme
Slide 5: Group results
Group results (CHE milion) 1912 4Q12 1913 Total operating income 6,523 6,208 7,775 Total operating expenses 4,956 8,044 6,327 Profit before tax as reported 1,567 (1,837) 1,447 ‘Own credit gain / (loss) (1,164) (ara) (181) Net restructuring charges" (126) (258) (246) Gain on disposals : : 65 Net loss
Slide 6: Wealth Management
Wealth Management Highest profit before tax’ Operating income and profit before tax (CHE million) 1Q12 4Qi2 I Operating income (as reported) I Profit before tax (as reported) I Profit before tax (adjusted) Net new money 150 D Quarter average —) 67 59 66 (CHE bilo FYI SUBS FY12 1912 4gi2 Refer wo sid
Slide 7: Wealth Management by business area
Wealth Management —by business area! Europe Asia Pacific Switzerland Net new money ‘growth rate 11.9123 (%) % 90 88 gs 89 1012201230124012 1013 1912291230124012 1013 1012201239124012 1013. 1912201230124012 313.3, Invested assets 357 (CHE billion) t advisors 1,633 res) 7 7 S14 28 998 105 199 102 gg 9
Slide 8: Wealth Management Operating income and gross margin
Wealth Management— Operating income and gross margin Margins were supported by higher activity early in the quarter i +13% 1 Invested assets: beh Up almost CHF 100 816 821 (CHF billion) m 783 Invested assets Transaction-based and trading revenue: icant upturn in client in the first six weeks of the
Slide 9: Wealth Management Americas (USD)
Wealth Management Americas (USD) Record profit before tax and continued strong NNM come and profit before tax Operating 209 219 262 (USD million) 1Q12 4Qi2 1Q13 I Operating income (as reported) IB Profit before tax (as reported) I Profit before tax (adjusted) Net new money Quarterly average 167 el 7
Slide 10: Investment Bank
Investment Bank Strong client activity drove significant increases in revenues and profit before tax Operating income and pr. (CHE million) 243) 79 1Q12 4Q12 I Operating income (as reported) IB Profit before tax (as reported) I Profit before tax (adjusted) 1Q13 1Q12 4Q12 1913 Adjusted cost / income
Slide 11: Corporate Client Solutions
Corporate Client Solutions Very strong equity capital markets performance Operating income CHF UsD FP 431% 5 i 429% 9 1,067 997 06: i 220 co 7 2030 ygy (826 184 67 mE 20 161 267 268 fm 28 : z 503 MWe 535 2 2 212 a 200 195 = | @ ‘ 'g A ico Mm 180 Mm... fe (02) G0) 73) a 77) 1912 -4Q12_1018 1012 -4Qi2
Slide 12: Investor Client Services
Investor Client Services Strong performance in Equities, FX, Rates and Credit Operating income (CHF rAt11% P#110% 1,920 1,787 4,768 1,607 619 ad 668 607 _ 15 304 H 1168 253 a 999 g = = i 542 7 586 1Q12_ 4Q12_— 113 1Q1I2-4Qi2_— 1913 Equities FX, Rates and Credit ASUBS sezenne taco 200 et ob, eae ope
Slide 13: Global Asset Management
Global Asset Management Strong NNM excluding money markets; stable PBT’ on good cost management Operating income and profit before tax 44 163 160 (CHF milion) 1Q12 4Q12 1m Operating income (as reported) Im Profit before tax (as reported) i Profit before tax (adjusted) NNM by channel - excluding mone
Slide 14: Retail & Corporate
Retail & Corporate Resilient performance and continued strong net new business volume growth Operating income and profit before tax 391 362 (CHF million) 1Q12 4Q12 ™ Operating income (as reported) lm Profit before tax (as reported) Profit before tax ( 362 1Q13 Net new business volume (NNBV) growth r
Slide 15: Corporate Center—Core Functions
Corporate Center—Core Functions Lower losses primarily on reduced in expenses Operating income and profit before tax Adjusted operating income negative — raz aan tan CHF 155 . mi Operating income (as reported) (1,091) (240) (479) ‘compared ‘Own credit gain / (loss) (1,164) (414) (181) * Losses from
Slide 16: Corporate Center—Core Functions headcount and cost allocation
Corporate Center—Core Functions / headcount and cost allocation Headcount" [—L 22co reduction | 24,961 27,716 26886 26,538 25,405, 177587 Legal 1.732 _ CREA? 1,035 Other? Apprentices & trainees 1.687 1,326 4Q10 aqui giz . ieee attributed to business divisions or to Non-core and Legacy Portfolio Oper
Slide 17: Group adjusted operating expenses
Group adjusted operating expenses Adjusted cost / income ratio. 81% GER 6,157 6,081 751 1,057 4,209 3%) z (4%) 4,030 = 2012 1Q13 quarterly average Average headcount 63.7 8%) 62.2 (ere 0003) tion, regulatory and similar matters Total variable compensation 1H Financial advisor compensation ‘other pers
Slide 18: Corporate Center—Non-core and Legacy Portfolio
Corporate Center—Non-core and Legacy Portfolio Realized / unrealized gains offset by expenses Operating income and profit before tax (Co ition) 1912 4912 1913 Non-core 525 31231 of which: Debit valuation adjustments (7) (188) 37, Legacy Portfolio 163 12,74 of which: SNB StabFund option 131 9424s Cre
Slide 19: Corporate Center—Non-core
Corporate Center—Non-core! CHF 45 n decrease in balance sheet 31.3.13 (CHF billion) Funded 2 RWA ¢ PRV RWA IFRS assets 389 Credit - Loans & distressed trading 73 01 344 Credit - Cash & CDS is9 |{ 26 || 94 z 2 = 65 59 =) 67 52 Credit - Structured credit a1 |[ 147] 2 po eS 311212 313.13 31.1212 313.13
Slide 20: Corporate Center—Legacy Portfolio
Corporate Center—Legacy Portfolio! Continued decrease in RWA 31.3.13 (CHF billion) wa Funded pRV? 102 |[ 34 |[ 12 Reference-linked notes (RUN) 58 || 23 |[ 06 ‘Muni swaps & options 24 || 2) |/ 48 Monolines 46 - 05 Auction rate secur 34 7.2 - Real estate assets 15 |{ o1 |[ 19 Loan to Black Rock fund 0
Slide 21: Changes in Group risk-weighted assets
Changes in Group risk-weighted assets Decrease in Non-core RWA offset by higher usage in the Investment Bank 3 8) finement and CHF 1.2 bil ‘Swiss resident more than offset by CHF 3.4 jon in advanced CVA and CHF 1. vent 258 on rating jon on ETD model (CHE billion) 31.12.12 Switch to ‘Model changes PK
Slide 22: Risk-weighted assets
Risk-weighted assets SNB StabFund! f 35% reduction Legacy Portfolio (until 4012) Non-core (from 1@13) and Legacy Portfolio, ~380 2m -350 ~62 o 258 ~258 Investment Bank WM/ WMA R&C/ Global AM/ Corporate Center - Core Functions 259 <225 <200 <70 ~100 Bo911 311211 313.12 314212 31.4212 313.13 312133121
Slide 23: Basel III
Basel III First large global bank to achieve 10% Basel fully-applied CET1 ratio Low trigger loss absorbing capital High trigger loss-absorbing ca Basel fully applied i a ; [| i BUBA2 31.12.12 313.13 2013 2014 target target Low trigger loss-absorbing capital | 3.8 Low trigger loss-absorbing capital (
Slide 24: UBS—Leading positions across all business divisions
UBS—Leading positions across all business divisions An unrivaled franchise with compelling growth prospects * World's leadi * Unrivaled scope, * Uniquely positioned in the largest markets and in * Strong momentum, wi the most attractive growth markets © "Best Private Bank Globall © “Best Private Ban
Slide 25: Appendix
Appendix SUBS
Slide 26: Wealth Management Americas—Lending balances (USD)
Wealth Management Americas —Lending balances! (USD) 230 34.5 25.6 2 3 a 8 1Q11 2Q11 3Q11 4Qit 1Q12 2Q12 3Q12 4Qi2 1Q13 L909 +1%—! l YoY +16% J 15 (HNW/ UHNW clients) Mortgages mt Margin loans other > Over 98% of WMA's loan portfolio is secured by securities (85%) and residential property (13%) SUBS
Slide 27: Our balance sheet, funding and liquidity positions are strong
Our balance sheet, funding and liquidity positions are strong Our balance sheet structure has many characteristics of a AA-rated bank Funding by product’ ue to banks Short-term debt sued Repurchase agreements ash collateral payables fon derivative instruments Securities lending DI — rine brokerage p
Slide 28: Change in funded assets
Change in funded assets! =z i ° —_— ' ' (15) 0) @ © 841 31.12.12 Non-core Legacy Core 1B wm WMA R&C GIAM 313.13 Portfolio Functions Corporate Center * FX movements added ~CHF 12 billion to funded assets, primarily from the USD appreciation against CHF ~ Largest effects on Corporate Center - Core Fun
Slide 29: Balance sheet
Balance sheet Total assets CHF 1,214 313.13 344 334 4 : } to be exited 263 234 70 Fi 330 193 184 5 38 Investment Other Corporate Center Corporate Center Corporate Bank business divisions Core Functions Non-core Center Legacy Portfol I Mi Assets excluding PRVs MPRVs 2 UBS
Slide 30: Leverage ratios
Leverage ratios Our leverage ratios will improve substantially as we reduce our balance sheet I Simple leverage ratio! _ [I FINMA leverage ratio (until 4q12)? Il Swiss SR@? Basel I leverage ratio from 1013) 5% ee 48% (CHEF trillion) 4Q06 4907 4Q08 4909 4Q10 agit 1013 11s equity atuibuable to UBS sha
Slide 31: Form 6-K incorporation by reference
This Form 6-K is hereby incorporated by reference into (1) each of the registration statements of UBS AG on Form F-3 (Registration Number 333-178960) and Form S-8 (Registration Numbers 333-49210; 333-49212; 333-127183; 333-127184; 333-162798; 333-162799; 333-162800; 333-178539; 333-178540; 333-17854