Ubs Group Ag · SIX:UBSG
Ubs — Morgan Stanley conference (March 2016)
19 slides from Ubs's conference presentation, Mar 16, 2016
Slide 1: Morgan Stanley conference
e% UBS Morgan Stanley conference Sergio P. Ermotti Group Chief Executive Officer March 16, 2016
Slide 2: Cautionary statement regarding forward-looking statements
Cautionary statement regarding forward-looking statements " -orwar ooking es ‘i there ord toa port ang oe ‘es forth rd RS eae: no oves2016 Al hese % UBS
Slide 3: We have successfully changed our model
We have successfully changed our model Achieved strategic targets announced in 2011/2012 Reduced risk-weighted assets Base Ill RWA (fully applied), CHF billion Achieved our capital targets Basel I CETI ratio (fully applied) Transformed our Investment Bank Investment Bank pre-tax ROAE’ 2011 2012 2013
Slide 4: Balanced businesses and global diversification
Balanced businesses and global diversification Leading wealth management businesses and Swi: universal bank PBT by business FY15 PRT, excluding PBT by FYI PT exltng ems managed slabally, CHE bllon Investment Wealth Bank an management 28% Busines EMEA Switzerland .) exc, Switzerland Asset eo Manageme
Slide 5: Strong capital generation throughout our transformation
Strong capital generation throughout our transformation CHF 20 billion capital generation FY12-15 pre dividend payments and litigation expenses! FY12-15 cumulative litigation expenses? FY12-15 cumulative | dividend payments +CHF 5 billion CET1 capital CET1 capital FY12 FY13 FY14 FYI5 CET1 ratio, 2.8
Slide 6: Challenging conditions have continued into 2016
Challenging conditions have continued into 2016 Divergence between expected and realized rates have reduced our earnings capacity Expected rates Realized rates 2M interbank rates 3M interbank rates, implied forwards as of October 2012 15% } ' 15% | EUR 1.0% + 4% USD 1.0% oo usD 0.5% 05% wet CHE 0.0%
Slide 7: WM and WMA invested assets composition
WM and WMA invested assets composition Client activity affected by market volatility and invested assets by lower market levels Wealth Management Wealth Management Americas 96 of CHF 947 billion total A, 31.12.15 36 of USD 1,033 billion total IA, 31.12.15 100% Other! 149%. oters External mutual fund
Slide 8: World's leading wealth management franchise
World's leading wealth management franchise Low revenue volatility with profit growth and NNM inflows Revenues’ ay Bo—-P agg 38 38 38 38 wane g.32.33.33.25 36 34 35 36 36 2 7 + Lowrevenue volatility stn ecaring j = + High and growing recurring share PBT ot which: + Growing profits cwense? + Target 1
Slide 9: Personal & Corporate Banking
Personal & Corporate Banking Continued success in Switzerland's leading bank Leading coverage with ~300 branches UBS branch locations Award-winning digital offering aS e-banking Best Bank in Switzerland! for the fourth consecutive year High-quality selective loan growth Net new business volume growt
Slide 10: Investment Bank
Investment Bank Strategic re-alignment completed — focused on excelling in targeted segments + One of the world's leading equities franchises Investor Client ibuted + Top tier Cash and Derivatives franchises, with one ofthe most Seely orgeee veer ute ecmuity cient Financing Services businesses in th
Slide 11: Investments in technology
Investments in technology We invested ~CHF 2 billion in FY15! to improve i and efficiency, provide the best offerings to our clients and to safeguard our security Investment projects Infrastructure ‘Complexity Business Challenges modernization reduction ‘enablement + State ofthe art technology + Sim
Slide 12: Corporate center cost reductions
Corporate center cost reductions We have reduced expenses by CHF 1.9 billion! since FY11 and are executing further reductions Corporate Center operating expenses CHE billion December 2015: Achieved CHF 1.1 billion o7 net cost reduction? 76 exc litigation expenses? and temporary regulatory demand mm
Slide 13: Draft proposal for revised Swiss SRB capital requirements
Draft proposal for revised Swiss SRB capital requirements We are well positioned to meet the proposed requirements Gone 2019 requirement per revised Swiss SRB draft} ! (Leverage ratio)? 'S position 312.157 cent Fully applied Bail-in bonds: We expect to replace maturing UBS AG public debt with TLAC-e
Slide 14: 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 CHE per share = ES =. oso Ft 0.10 0.15, i Finance 9201220132014 201 ‘CTI ratio 6.7% ~9.8% 12.8% 13.4% 14.5% a * We are
Slide 15: Continued focus on execution ...
Continued focus on execution ... What we have delivered Management priorities Successfully executed the ‘transformation of UBS Made substantial progress vg _ in reducing costs and_ Solidified position as the world's largest and fastest growing wealth manager’ ur clients with ieedlnoeae opsblties and
Slide 16: Appendix
Appendix
Slide 17: Group and business division targets and expectations
Group and business division targets and expectations Ranges for sustainable performance over the cy Net new money growth rate ‘Adjusted costincome ratio ‘Net new money growth rate ‘Adjusted cosviincome ratio 35% bial 10.13% annual ase prtas profit gromth for 2.4% combined businesses through the 75.8
Slide 18: Oil and gas exposures
Oil and gas exposures ‘As of 21 December 2015 our total net banking products exposure to the oll and gas sector, mainly in North America, was CHE 6.1 billion, id ‘of which CHF 5. and pe Of this, CHF 2.5 billion was relat by lower energy prices, ed to ecu sevens for umepartaton ave bly foc or volume
Slide 19: Speaker script
Strictly confidential Morgan Stanley Conference Presenting at 9:30am – Hyde Word count (excluding slide titles): 3,000 ~24 mins Thank you, Huw. Good morning everyone. SLIDE 1 - Cautionary statement regarding forward-looking statements Before I get started, please make note of the cautionary statemen