Ubs Group Ag · SIX:UBSG
Ubs — Investor Day (May 2014)
32 slides from Ubs's investor day presentation, May 6, 2014
Slide 1: 2014 Investor Update
2014 Investor Update Leading Global Franchise with Superior Growth Prospects Bob McCann CEO, Wealth Management Americas and UBS Group Americas Jürg Zeltner CEO, Wealth Management May 6, 2014
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: Our wealth management franchise is unrivalled
Our wealth management franchise is unrivalled Invested assets of CHF 1.8 trillion managed by over 11,000 advisors Wealth Management Americas Invested assets Wealth Management 2013 31.3.14, CHF billion 2013 È USD 1 trillion invested assets, È CHF 0.9 trillion invested assets, USD 1 billion adjusted p
Slide 4: UBS is best positioned to seize the global wealth management opportunity
UBS is best positioned to seize the global wealth management opportunity Our footprint is unique with a strong presence in growth markets UBS invested assets CHF billion È Fundamentally attractive 31.3.14 industry economics Europe including Switzerland1,3 È Compelling growth prospects estimated mark
Slide 5: Leveraging the Group capabilities to serve our clients
Leveraging the Group capabilities to serve our clients Investment Bank Global Asset Management È Access to capital markets and È Wide range of investment products product development È Strength in Equities, Alternatives, È Top-notch execution & and Real Estate institutional-like client coverage È Ta
Slide 6: Management agenda to drive profit growth
Management agenda to drive profit growth Investment engine Leverage our global expertise across the entire client base UHNW/GFO Apply our unique set of global capabilities across both businesses Pricing Implement pricing aligned with value proposition Cost efficiency Manage direct costs to stay with
Slide 7: Wealth Management Business Division
Wealth Management Business Division
Slide 8: Delivered strong revenue growth while absorbing headwinds
WMWMA WM Delivered strong revenue growth while absorbing headwinds Wealth Management operating income CHF billion, arrows illustrative (9%) +14% 7.6 7.2 Management priorities Adjusted Deposit Offshore Retrocession- Treasury Book trans- Net new Client Securities Other Adjusted operating spread trans-
Slide 9: Over 40% of revenues from Asia Pacific and Emerging Markets
WMWMA WM Over 40% of revenues from Asia Pacific and Emerging Markets Operating income by business area By client segment adjusted, CHF billion 2013 Operating income 7.6 7.2 18% Emerging markets 18% ~28% 35% 41% Asia Pacific 17% 22% ~72% Switzerland 21% 19% Profit before tax1 Europe 44% 40% ~30% ~70%
Slide 10: Clear strategic priorities to drive growth
WMWMA WM Clear strategic priorities to drive growth Making investment Place investment management and portfolio construction1 at the heart management part of our DNA of our offering Shift Traditional Advisory2 assets into mandates to provide a greater selection Transforming advisory of value-added s
Slide 11: Taking care of our clients' wealth
WMWMA WM Taking care of our clients' wealth Leveraging our investment engine across the entire client base Client profiling Traditional Advisory Return Discretionary House View mandates Risk Advisory mandates x Deep understanding of our x Clear and consistent views on x UBS House View tailored to cl
Slide 12: We aspire to manage a larger proportion of invested assets
WMWMA WM We aspire to manage a larger proportion of invested assets Positive impact on gross margin Benefits Traditional 22% 28% Advisory È Superior client value proposition (Cash and allowing for premium pricing cash-equivalent1) Traditional Advisory 100% È Gross margin pick-up È Increasing share o
Slide 13: Seizing the revenue opportunities and positioned for macro upside
WMWMA WM Seizing the revenue opportunities and positioned for macro upside Revenue development 2013–2016 illustrative example Comments Revenues 2013 x Outflows in the context of fiscal and Regulatory headwinds regulatory concerns Move towards Book transformation x Shift of assets into mandate produc
Slide 14: Positive operating leverage
WMWMA WM Positive operating leverage Low marginal costs from additional revenues Operating leverage illustrative example, bars not to scale x Increasing focus on costs Structural x Realizing efficiency improvements to fund investments "positive jaws" x Continued annual investments of 3-5% of revenue
Slide 15: Wealth Management Americas Business Division
Wealth Management Americas Business Division
Slide 16: Accelerate growth through transformation
MWMA WM Accelerate growth through transformation WMA's unique positioning and global reach enabling growth through transformation 3 pillars of growth 30% 29% Banking products 25% and lending US private 24% Wire- bank median WMA Pre-tax profit margin house 20% Future median 19% Wealth 15% Management
Slide 17: Pillars of further growth—Banking and lending
MWMA WM Pillars of further growth—Banking and lending Lending balances USD billion +88% x Mortgage balances and securities- 39.1 based lending increased by 220% and 3.5 28%, respectively, between 2011 and 2013 6.4 29.7 x Over 99% of loans secured by securities (83%) and residential property (16%) 4.
Slide 18: Pillars of further growth—Holistic wealth management advice
MWMA WM Pillars of further growth—Holistic wealth management advice Clients need wealth Clients more satisfied when receiving Executing programs to management advice more holistic wealth management advice support advice delivery Breadth of advice1 Plan Aligned incentive programs 79 96 Satisfaction w
Slide 19: Financial plans drive deeper relationships and stronger economics
MWMA WM Financial plans drive deeper relationships and stronger economics1 Existing clients New clients YoY change YoY change A financial plan drives stronger economics A financial plan drives asset growth Revenues 57% NNM 261% Advisory program penetration 539% NNM New clients with plan prior to 306
Slide 20: Pillars of further growth—Cross-collaboration to deliver the firm
MWMA WM Pillars of further growth—Cross-collaboration to deliver the firm 3,488 referrals and 943 wins in 2013; 1Q14 IB referral revenue up 2.3x YoY Collaboration within organization to meet client needs Fostering a culture of collaboration Accomplished: WM/WMA Investment Bank x Stronger Americas re
Slide 21: Targets
Targets 3% UBS
Slide 22: Targets
Targets1 Wealth Management Americas Wealth Management Cost/income ratio adjusted 91% 90% 86% 80-90% 75-85% 68% 71% 66% 60-70% 55-65% 2011 2012 2013 Old New 2011 2012 2013 Old New target target target target Net new money growth annual % of invested assets 4.4% 3-5% 2-4% 3.5% 2.9% 3.1% 1.9% 2.3% 2011
Slide 23: Key messages
Key messages Our wealth management businesses are uniquely positioned to capture the global wealth management opportunity We leverage our global platform and the capabilities of the entire Group to serve the needs of our clients We aspire to deliver 10-15% adjusted pre-tax profit growth per year ove
Slide 24: Appendix
Appendix 3% UBS
Slide 25: Key elements of our platform
Key elements of our platform Global reach and leading Comprehensive investment market positions and advice offering È Clients from >200 domiciles È Highly scalable investment covered via 25 booking centres management and advice engine, globally large product shelf È Presences in >40 countries with È
Slide 26: Process behind our investment engine
Process behind our investment engine Client Analysis UBS House View Investment Investment Portfolio profiling strategy solutions management goals CIO Office IPS È Client advisors gather È >850 economists, È Formation of the È Based on UBS House È Delegated, È Investment and and maintain deep analyst
Slide 27: Chief Investment Office
Chief Investment Office Fully institutionalized, state-of-the-art and highly scalable Chief Investment Office Resources Processes Performance x CIO office staff ~180 in 12 locations x Sophisticated processes to form x Objective: achieving best risk/return investment strategies and manage outcomes wh
Slide 28: Investment Products and Services (IPS)
Investment Products and Services (IPS) Enabling the transformation of the WM book of business x Discretionary investment x Fee-based advice in portfolio context management with broad IPS1 x Daily monitoring of portfolio against product offering Discretionary Advisory pre-defined criteria with CA ale
Slide 29: We deliver differentiated solutions to our clients
We deliver differentiated solutions to our clients Average industry standard Comprehensive wealth planning approach Focus on customization at the client level Discretionary Advisory Discretionary Advisory Traditional mandates assets mandates mandates Advisory È Investment process È Advice driven by
Slide 30: Revenue sensitivity to management actions and market factors
WMWMA WM Revenue sensitivity to management actions and market factors1 Execution of management priorities Less conservative 10% of clients shift from conservative to a more balanced portfolio based on current book investment behavior concentration: ~CHF 140 million per year (~1.6 bps RoA) 2 addition
Slide 31: Strong financial performance
WMWMA WM Strong financial performance Europe Pre-tax profit growth Cost/income ratio (1H12=100) (%) x Best private banking services overall 130 80 x Best relationship YoY YoY 2H12/13 2H12/13 management 120 75 x Best range of investment (1) ppt products 110 70 x Best range of advisory (2) ppt +14% se
Slide 32: Important information related to numbers shown in this presentation
Important information related to numbers shown in this presentation Use of adjusted numbers Adjusted results are non-GAAP financial measures as defined by SEC regulations. Refer to page 12 of the first quarter 2014 report and pages 76-77 of our 2013 annual report for an overview of adjusted numbers.