Slide 1: First quarter 2016 results
&%§ UBS First quarter 2016 results May 3, 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: 1Q16 results
1Q16 results Resilient adjusted PBT CHF 1.4 billion in challenging market conditions Group Not profit attributable to UBS Group AG shareholders CHF 707 million, diluted EPS CHF 0.18 Reported profit before tax (PBT) CHF 978 million, adjusted PBT CHF 1.366 milion Adjusted return on tangible equity 8.5
Slide 4: UBS Group AG results (consolidated)
UBS Group AG results (consolidated) erin enept where indicate 19152015 3q15 AQIS 1916 “Total operating income gen 7.818 677s 6833 Total operating expenses 6136 6059 6.382 6.585.855 Profit before tax as reported 2,708 1,759 788238978 (of which: net restructuring charges Gos) (18) 38) aa) 255) lof whi
Slide 5: Wealth Management
Wealth Management Resilient performance despite lowest first quarter transactional revenues on record Operating — yaar yynr 20212008 249% 2024 4442 yor7 90s Operating Income CHF 1,885 million income + Transaction-based income increased primarily in Asia Pacific but remained well below seasonal tends
Slide 6: Wealth Management
Wealth Management NNM CHF 15.5 billion, highest since 2007 with continued focus on high-quality inflows Net new money" Invested assets Loans Margins es UBS nee ms i | | | - bo aos 928 966 987 970 945 gap 987 92s 4082 1083 Hi 1187 vids t109 soH0 Ta52 oR 27 os 6 2 6 85 os oy on Til croumag Ml Netmargn
Slide 7: Wealth Management
Wealth Management Positive net new money in all regions, particularly strong UHNW Europe Asia Pacific Switzerland Emerging markets |_ of whch: UHNW Net new —— aw ta a annualized — gy aw a | ei oe ie gz Py | row rote jum ose A Ms se am oss moos 2s fed orien =$OP2XOOOD QOOO® POCSCO GOODE ®2020D gi ' a
Slide 8: Wealth Management Americas
Wealth Management Americas Solid performance with record net interest income Operating expenses Profit before Ciratio eS UBS * 65 1990 1,919 1,928 1901 1.987 1,931 497s 1.0% DQODDODOQ®O®D Wb recaring netfee sa10 susoz W452 1451 1.691 4,500 1717 1044 121° ness 306 28. [| L all al i QDOdOdodood@®d rar
Slide 9: Wealth Management Americas
Wealth Management Americas Strongnet new money and record managed account assets Net new a money {+ NNNA USD 13.6 billion predonsinantly from newly eeasrse rected ara el om aaa iho sacustaed ie fave been with U2 for more than one year pr | | o_o = om Lots $PODOODOO®D Invested —__sa7. 1017 1016 1982
Slide 10: Wealth Management Americas
Wealth Management Americas Industry leading productivity per advisor for revenue and invested assets Invested. assets and | FA productivity Net interest income and lending A Annualze revenve per FA (USD thousand) A ner ners income (USO milton) Invested assets per FA (USO malin) rancal avons (FTE) re
Slide 11: Personal & Corporate Banking
Personal & Corporate Banking Higher PBT and highest net new business volume growth for personal bankingsince 1Q12 Operating expenses Profit before tax Cratio BRUBS “terse ete mana natainnentananenenietaintioetn 950 913979 952 968 gas 963. saz 57 yy 557 536 530 536 sip 541 ud) 255 fase) (277 [aon] ae
Slide 12: Asset Management
Asset Management Lower performance fees reflecting market conditions Operating — gg ass 49 497 $11 476 502512 agg Operating income CHF 468 million ¢ Poa income + Performance fees decreased mainly in Equities, Multeasset & O°Connor ‘+ Net management fees decreased reflecting the Feduced revenues from
Slide 13: Investment Bank
Investment Bank Disciplined resource management and returns comfortably above cost of equi Operating income Operating expenses Profit before tax Cratio of UB! 2.687 2.200 2.228 2 ~ Cerporate Cent outons ceo len Serer Patera Cet Hi over hen Serces Egat seat 1677 (Gt) ness 1824 1.727 ea (65 o8 2 “Te a
Slide 14: Corporate Center
Corporate Center Continued reduction in Non-core and Legacy Portfolio LRD yas 2015 3015 Profit before Lt _| tax re) Services ‘operating come @ «oo Operating expenses ve 2237 ‘tw befor allocations 3009 2040 2017 elwnetaloetons (1.791) (1827) (1.800) Frofit before tax @2) Gs) G55) Group Asset and Liab
Slide 15: Cost reduction
Cost reduction Corporate Center operating expenses Corpoate Center Serves adjusted operating expanses before allocations {busines dons and Corporate Canter ~Noncote and Lagi) Portal, CHF Bon arch 2016: chines CHET 2 lon ‘Adjusted operating expenses fed gation expenses regulatory ‘engeing and program
Slide 16: Cost reduction
Cost reduction On track to deliver CHF 1.4 billion by 2Q16 and steady progress thereafter to end 2017 ‘Cumulative annualized net cost reduction" Achieved CHF 1.2 billion ‘as of March 2016. 12 os on March FYI5! December March Expected Target 2015 20152016 June 2016 2017 SUBS. saetsmessernentera py ee
Slide 17: Cost reduction
Cost reduction Structural initiatives to achieve our CHF 2.1 billion net cost reduction target and mitigate the impact of regulatory demand... Corporate Center ‘+ On-going structural cost reduction program to be completed by end.2017, + Actions across workforce & footprint, organization, processes a
Slide 18: Capital and leverage ratios
Capital and leverage ratios Strong capital position with 14.0% Basel III CET1 ratio and 5.4% Swiss SRB leverage ratio Basel Ill CET1 capital ratio’ ‘Swiss SRB le Fully applied, CHE billion Fully applied, CHF bil tare AS 143% 15.5% 14.095 1.08 euirtnet Ai ae 52% 54% aah anieT 2019 veuirement an 191 2
Slide 19: Appendix
Appendix a UBS
Slide 20: 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 Tie haw Buses volume pow rae 16 (pasonal Bang et interest margin 140.10 bp Adjusted costineame rt soos Tiet new money gro
Slide 21: Group ALM operating income
Group ALM operating income of UB! book on behalf of Wealth Management and Personal & : Corporate Banking and high-quality Sei Rg aaa a liquid asset HOLA) portfotos on behalf of specif business divisons Capital investment and issuance ‘includes managing the Group's equity and capital instruments, inc
Slide 22: Capital requirements under draft proposal for revised Swiss SRB
Capital requirements under draft proposal for revised Swiss SRB UBS leverage capital ratio balances vs. revised Swiss SRB Meeting 2019 requirements Bs poston as of 313.16! asein everage ratio requirements? Gone concern 1+ 13% (onF 116 bion) exiting UBS Gree AG TLACHend, Incadng Usd sabinon pred 293.
Slide 23: Corporate Center — Non-core and Legacy Portfolio
Corporate Center — Non-core and Legacy Portfolio RWA 102 ‘operations tk 5 I Cre and market noon oR a) 2 2 oo i 301s aQ1s 1016 so | i i ag 3q1s aq1s 1916 a UBS LD’ and RWA by category Foes I 17 2 Muniowape and options 24 peravonal tsk {RO CHE 41 billion LRD: natural decay"? aque 017 aque me Jos Is Jo
Slide 24: Oil and gas exposures
Oil and gas exposures Oil and gas net banking products exposure’ OM S-Sbillon CHESS billion eH 5 bilon omer 1% Servers andsupy03 0% 1% regom LH Integatedo & Feticing 02 once Extortion sd production 5 ort ona Midstream 23 83 geography ey rating by amore 1509136 tl tnaesansuntnae net aningrutenponuett
Slide 25: Cost reduction
Cost reduction Corporate Center operating expenses before allocations’ 103 Litigation epee: agultory Prosar ont en opettrg eperees 9 rescore 74 + CHE 1.2billon net cost reductions based on Fe ne rte ee eee fae SUBS eeeee cee ee erent ean ner enna cee
Slide 26: Regional performance — 1Q16
Regional performance — 1Q16 onion Americas Asia Pacific. ©—«EMEA—=—Switzarland Global! Total a1 1Q16 4a1S tate aqIs QI 4a1S TIE AQIS 1916 AQIS 1016 ® os 0) 040s es 0s 02? oH = = = = 2) een en Grou ass tots ts tet) wan Ce eC uo a oer ere O19 ox oe ® os 05 oe e605 011 om 1515 Group 2323, 08 os a2 oste
Slide 27: Adjusted results
Adjusted results suring ens rye _pris__tont_sou sou sate seth 015 015 4005 _10¥4 ‘Darang cana epored (ro) Ta TOs “Tae Ta) GATE GG “aR Tae TATE “aT , = Gperting cone che (eee Tia ass “Tal Toh A_AES _aase_Ta_ Tom ease “Eas ‘Derating aperns as epotea Ga) Tae Die 505 590 70 Oe GO Ge Gel GT SBS ese a oe
Slide 28: First Quarter 2016 Earnings Call Remarks
UBS First Quarter 2016 Earnings Call Remarks May 3, 2016 Sergio P. Ermotti (Group CEO): Opening remarks SLIDE 2 – 1Q16 results Thank you, Caroline. Good morning everyone. A lot has been written and said about the challenges faced by the industry in the first quarter. Many of the risks that we have b