Slide 1: Fourth quarter 2015 results
&%§ UBS Fourth quarter 2015 results February 2, 2016
Slide 2: Cautionary statement regarding forward-looking statements
Cautionary statement regarding forward-looking statements ‘rupesertaton ota tatenet ut cnasae fran loaner ousngh tints manapenent cua UBS francalpeomarcesnaratent atngts the anscnted ene tana ans teste taeeron es reusestanunreevespmet hares oxigsenets ern Usps ‘Secatanreanarngthe mtr eo smarty acoae
Slide 3: 2015 — Strong results and execution
2015 — Strong results and execution Net profit attributable to UBS Group AG shareholders up 79% YoY to CHF 6.2 billion Strong financial performance ~ Adjusted profit before tax more than doubled YoY to CHF 5.6 billion ~ Adjusted return on tangible equity 13.75, above FY15targetof around 10% ~ FY 1S
Slide 4: The world's leading wealth management franchise
The world's leading wealth management franchise UBS is the world’s largest anid fastest growing wealth manager! Invested assets Operating income Profit before tax oe practi incon iol cc a1 149 IPA. ag oe. Be m. ro . rT Lt | ole ooo 4q12 413 aQ14 415, viz FYI FYI FYIS Fyi2 FVI3 FYI. FYIS, Superior lo
Slide 5: 2015 — Strong progress in all our businesses
2015 — Strong progress in all our businesses Improved performance in challenging market conditions Personal & Asset Investment Corporate Management Bank Banking Best PBT since 2010 PBT up 20%, improved strong operating despite ‘iiney with interestrate headwinds progresson strategie Involatle markets
Slide 6: Delivering attractive capital returns to our shareholders
Delivering attractive capital returns to our shareholders Dividend per share to be proposed for FY15: CHF 0.60 ordinary and CHF 0.25 special dividend Total capital return per share CCHF per share oss ars - eas Spec 02st - + Ordinary dividend reflects strong financial performance spel Ghidend retlect
Slide 7: 4Q15 results
4Q15 results Net profit attributable to UBS Group AG shareholders of CHF 949 million Group Net profit attributable to UBS Group AG shareholders CHF 949 million, diluted EPS CHF 0.25 Adjusted return on tangible equity 11.4% Reported profit before tax (PBT) CHF 234 milion, adjusted PBT CHF 754 million
Slide 8: UBS Group AG results (consolidated)
UBS Group AG results (consolidated) HF mtn except weveindted foes aga 3q1s sans, Total operating income 23.027 30,605, ame 7.706778 Total operating expenses 25,567 25,116 632 6362 6541 Profit before tax as reported: 2451 5,489 40s 788234 of whieh: own crest on financial liabilties designated a fi va
Slide 9: Wealth Management
Wealth Management Resilient recurring income in challenging market conditions with low levels of client activity Operating 41,983 4,921 2.031 2004 2.106 2024 4,943 4,297 Operating income CHF 1.897 million income + Transaction-based income decined on lower lent acthity, mainiyin APAC and emerging mar
Slide 10: Wealth Management
Wealth Management NNMreflecting client deleveraging, seasonal headwinds and strategic discipline Net new money Invested assets Loans Margins & UBS | | Pi || ©220000590 Adjusted ne ase as9 928 966 997 970 545 939 947 5B) 022 105 Ny 11 OD 1100 109 1052 os 97 os 6 gz Caen I croumaig Ml Netmargn 4919 19
Slide 11: Wealth Management
Wealth Management Continued net inflows in APAC and Switzerland Europe Asia Pacific Switzerland Emerging markets of which: UHNW Net new money Annuaiod ‘roman te x aon —_ nacht eee ne me eee 22 am m 156 505 Sieben ‘lent advisors = ae 092 ™ 705 ne Pier ky Pepe et ea ot Shenae ecm
Slide 12: Wealth Management
Wealth Management Clear strategic priorities to drive growth and profitability Strategic agenda + Investment engine and book fensformation: oo ugh sae, di roth aii comsnive Sememeret NS sue SEt si cesta eanaae ae #8 ay adae on sensing nl + yi ii 129 191 2 Leverage our industry- Ieading investment an
Slide 13: Wealth Management Americas
Wealth Management Americas Strong operating performance with record net interest income Operating expenses Profit before tax Ciratio & UBS 51 1965 1.980 1,919 1928 1908 1987 1931 ger DQOQDDOOaooQD Wb recaring netfee fy 4g02 1652 1,651 1891 609 1717 teas 121 Secsces trometer baer ion and Caporate Cen
Slide 14: Wealth Management Americas
Wealth Management Americas Strong NNM USD 16.8 billion Net new money . Invested 970 sa 1017 32 1050 1085 g92 4023 assets ] ] | | i Loans, 3) 86) 4A) BS) ado aS) PS) ATS E+ a a a ry = RHARRRRER I croumaign Ml netmargn 4919 1916 2018 3018 4018 1015 2015 3015 Aas GIRS “ners ete rae natainntentaunanenei
Slide 15: Wealth Management Americas
Wealth Management Americas Industry-leading productivity per advisor for revenue and invested assets Invested assets and FA productivity, A Annualze revenve per FA (USD thousand) Invested assets per FA (USO malin) rancal avons (FE) 18 yn sos 9 son uy Me a am wy 150 180 us 143143 1“ an) 2 237 FAIB AT
Slide 16: Personal & Corporate Banking
Personal & Corporate Banking Best fourth-quarter PBT since 2011 Operating income Operating expenses Profit before tax Cratio GIRS “ners ete rae natainntentaunaneneiotaintioetn sa 530 526 S19 287 (aug 256 35g) 277 35a 3to| (208 aan Senses romther baer ion and Caporate Center, Bi canard otner Bi Pesom
Slide 17: Personal & Corporate Banking
Personal & Corporate Banking Continued success in Switzerland's leading franchise Operating income Operating expenses: Profit before tax. Costincome ratio: Net new business volume growth Fon banking Target Target 5 range range 23% (2.4% | _ | | | Faryad FYI FYIs FYI YAS. Best Bank in Switzerland’ fo
Slide 18: Asset Management
Asset Management Solid performance - PBT CHF 155 million, up 12% QoQ Operating income Operating expenses Ciratio Netnew money ex MM. GRUBS “netics ae natainntentananeneietintietn 492 45s 465 499 497 50 gre 0212 il pertormancetees Ml Netmanapementees a9 as gas 342 365359, 48) (8) (19) fair fon) m9 (1
Slide 19: Investment Bank
Investment Bank PBT CHF 225 million, strong performance in FRC with revenues up 50% YoY Operating income Operating expenses Profit before tax Cratio of UB! 2057 2.00 2225 PEELE Cerporate Cert outons cer len serees Patera Cet Bi oven hen Serces Egat ess 077 a suoas 1821 4727 aS 8 (0 al Caaand otner e
Slide 20: Corporate Center
Corporate Center Non-core and Legacy Portfolio LRD below CHF 50 billion sas cd 2015 3015 4015 i =a tax (168) a) porate es iF in 7 ae Canter outs by operating income © 8) 69 Ge) + Operatingexpensesbetoreallocatonsinceased, many duet ein san ‘vacation aecuais and an increase in the deprecation of inte
Slide 21: Corporate Center cost reductions
Corporate Center cost reductions Continued net cost reduction progress Aettegid SUE «+ Achieved CHF 1.1 billion net nsieccie yearend S047 target cost reductions based on cof yearend SoH target December 2015 annualized i exitrate 10 _— + Improving our effectiveness annualized andetficiency continuest
Slide 22: Corporate Center cost reductions
Corporate Center cost reductions Gross savings of ~CHF 1,7 billion FY15 vs. FY13 have been partially offset by increased business demand and permanent regulatory costs Corporate Center operating expenses before allocations’ 03 Lvgaten rower on Terporty tegutry ee.) a ‘ener oo ss wo os = eal L | pers
Slide 23: Corporate Center cost reductions
Corporate Center cost reductions Examples of cost reduction activities in progress! ‘Share of FTEs in offshore andnearshorelocations Desk capacity created since 4q14in strategic locations Workforce & footprint we te we 4013 1oNe 2014 3014 4014 1915 2015 3015 ONS (eaten, (Pn) atnate) shang nero BB er
Slide 24: Capital and leverage ratios
Capital and leverage ratios Strong capital position with 14.5% Basel III CET1 ratio and 5.5% Swiss SRB leverage ratio CET1 capital ratio" fully applied, CHE billon Swiss SRB Leverage ratio Fully applied, CHE bition date 148% 14.386 14.5% womb euirtnet 46 47% Sam 53 42h atieT2 reqieent on 1e1s 2015 3
Slide 25: Continued focus on execution ...
Continued focus on execution ... What we have delivered Management priorities V Execution of the Deliver transformation of UBS our performance targets Made substantial progress ao in reducing costs and achieving operational efficiency Improve effectiveness and efficiency Solidified position v as the
Slide 26: Appendix
Appendix es UBS
Slide 27: Group and business division targets and expectations
Group and business division targets and expectations Ranges for sustainable performance over the cycle! 10.15% annual adjusted pretax prot growth forcombined busines trough the ce et iterest margin Adjusted costineame rt Tiet new money growth rae [33% excluding money maka lows EET ted costincome rat
Slide 28: Capital requirements under draft proposal for revised Swiss SRB
Capital requirements under draft proposal for revised Swiss SRB Effective end-2019, with a transitional period starting 1.7.16 [B® Gone concern capital (TLAC) + Overall requirement mitrors the going concern requirement resilience and resolvability? Gone concern EEE Going concern capital 50% requirem
Slide 29: Capital requirements under draft proposal for revised Swiss SRB
Capital requirements under draft proposal for revised Swiss SRB We will be compliant from the inception of the new requirements UBS leverage capital ratio balances vs. revised Swiss SRB UBS poston as of 31.12.15! a UBS Meeting 2019 requirements Gone concern (bail-in bonds) + OK (CHF. bln) exiting US
Slide 30: LRD: former Swiss SRB vs. new Swiss SRB
LRD: former Swiss SRB vs. new Swiss SRB Swiss SRB rules for the calculation of LRD are fully aligned with BIS Basel III rules as of 51.12.15 ‘Swiss SRB.LRD sae ‘ os oe 2 o 09 ai oo @ © on twisesre OL swe ‘ > * 7 seen ‘ee ramon rom oa 7% gebace cree oarvtee otter cane “ra Changes due te regulatory me
Slide 31: Corporate Center — Non-core and Legacy Portfolio
Corporate Center — Non-core and Legacy Portfolio Credit and market risk RWA down ~90% since 4Q12 RWA 13 ‘operations rk D I Creat and market rk Ea ta 32 32 et Dike Be ow LRD' and RWA by category creat secunvesvons asians Muni swaps and options a el Ge anh Se aE ane | ener LRD' LRD: natural decay"? “a
Slide 32: Net tax benefit and deferred tax assets
Net tax benefit and deferred tax assets 4Q15 included net additional recognized deferred tax assets of CHF 794 million 4Q15 net tax benefit of CHF 715 million Tax loss DTAs'2> 3015 4Q15, Profit before tax (as reported) 78 238 1 Urecognzed BE Recognized Net deferred tax benefit ith respect to (4.535)
Slide 33: Oil and gas exposures
Oil and gas exposures We are closely nd gas net lending exposure? © ios ‘CHF tition cr 6. bition mF 61 Billon other a Service & Supply 1186 regers Integrated retiring Expbnaton a Producvon aad Midseeam By geography By rating By segment monitoring the sector given the potential negative effects of su
Slide 34: Regional performance — 4Q15
Regional performance — 4Q15 onion Americas Asia Pacific «EMER Switeerfand 3Q1s Qs 3915 4ats 3015 4q1s 015 cats Grou 2s ee ea wan Ce eC eT? Group 223 os ete we eC CD a emer oc oa 021 ez 0s es em ores RUBS ‘semigmeraagszeey neocon rare agin tenon mercinmnneten ‘ba 39154015 09 60) 2) 6» en eo comer) e9
Slide 35: Regional performance — FY15
Regional performance — FY15 onion Americas 2021S Grou wo wan on 83 Group 1985 oss RUBS ‘semigmeraagszeey neocon rare agin tenon mercinmnneten Asia Pacific ‘switzertand 2018 2015 2018 2018 20162015 2» as ‘ba 201 2015 ey 6» an 09 ae» eo 00 ay 00 29 6» an 29 eo en ‘otal 2014 2015 07 e9 Fred e928
Slide 36: Adjusted results
Adjusted results aug ane Furs 400 sou 20% 294 sai 1015 015 _015_s015 we, = co Soerating income ante (0) Ts ane “eats Tae Tae "aoe T_T ease “Serating apes a reported (Gey Ter Ie See Sa aay Ja Oe GIN Gy Om oo erecting ourget a a a a a oe re ene a ed ‘a a, oo ay co . @. = co o_o ‘Darang roves) before t
Slide 37: Fourth Quarter 2015 Earnings Call Remarks
UBS Fourth Quarter 2015 Earnings Call Remarks February 2, 2016 Sergio P. Ermotti (Group CEO): Opening remarks SLIDE 2 – 2015 – Strong results and execution Thank you, Caroline. Good morning everyone. was another year of disciplined execution, where once again, we showed that we can deliver sound adv