UBS Group AG · SIX:UBSG
UBS — Investor Day (December 1999)
39 slides from UBS's investor day presentation, Dec 14, 1999
Slide 1: UBS Investors' Day Private Banking
ab UBS Investors’ Day Private Banking Rudi Bogni 14 December 1999
Slide 2: Contents
Contents Section 1 Industry Trends Section 2 Positioning Section 3 Strategy Section 4 Business Initiatives Section 5 Conclusion Appendix ab 1 Private Banking
Slide 3: Industry Trends
Industry Trends SECTION 1 ab Private Banking
Slide 4: Potential for the Private Banking Industry
Potential for the Private Banking Industry Strong growth forecast in HNWI wealth (USD trillion) 32.7 Africa 21.6 Eastern Bloc 19.1 Middle East Latin America Asia North America 7.2 Europe 1986 1997 1998 2003E Source: World Wealth Report 1999, Merrill Lynch/Gemini Consulting ab 3 Private Banking
Slide 5: Industry Attractiveness and Competitive Pressure
Industry Attractiveness and Competitive Pressure ♦ Industry attractiveness — HNWI financial asset wealth forecast to grow at 9% p.a. — low capital requirements and stable revenues — low proprietary product differentiation ♦ Competitive pressure — Insurers AIG, Zurich, Allianz — Stockbrokers Schwab,
Slide 6: Changing Client Profile
Changing Client Profile ♦ New wealth growing faster than inherited wealth — entrepreneurs, executives and professionals ♦ More active and less risk averse ♦ Well educated and IT-literate ♦ Global and mobile ♦ Growing demand for — superior investment performance — innovative and sophisticated product
Slide 7: New Technologies
New Technologies ♦ No more proprietary information channels — information liquidity and transparency — comparison shopping ♦ New market mechanisms — pull strategies outperform push strategies — tailored assembly of specialized services — distribution costs approaching zero ♦ Data-mining techniques —
Slide 8: Opportunities for the Private Banking Industry
Opportunities for the Private Banking Industry ♦ Advice is the key sustainable differentiating factor ♦ Life-cycle view ♦ Share-of-wallet ♦ Intimacy and customization - know your clients’ needs — frequent client interaction on multiple channels — increased client experience ♦ Client retention and ex
Slide 9: Positioning
Positioning SECTION 2 ab Private Banking
Slide 10: UBS Private Banking Profile
UBS Private Banking Profile ♦ 80 Private Banking locations worldwide ♦ 8,773 employees — professional skills, strong knowledge of culture, language skills and customers’ traditions ♦ Close personal and long-standing client relationships ♦ CHF 642 billion assets under management ♦ Targeted client gro
Slide 11: Strategy
Strategy SECTION 3 ab Private Banking
Slide 12: UBS - the Premier Global Private Bank
UBS - the Premier Global Private Bank UBS Private Banking is ♦ the integrated provider of a broad portfolio of financial products and services….. ♦ to wealthy clients, and the financial intermediaries advising them….. ♦ worldwide….. ♦ covering the whole life cycle and ….. ♦ through succession planni
Slide 13: UBS Private Banking Strategy
UBS Private Banking Strategy ♦ Focus on wealthy clients with individualized requirements across broad product range and through entire life cycle ♦ Defend position in Swiss private banking with Swiss and international clients ♦ Build domestic private banking businesses outside of Switzerland ♦ Diver
Slide 14: Integrated Wealth Management
Integrated Wealth Management Individual needs Delivery of tailor Client made solutions Corporate Estate Finance Advisor Advisory Portfolio Trust Management Business Global Financial Custody Planning Active Real Estate Art Banking Investment Funds Credit Management Advisors Size does matter! ab 13 Pr
Slide 15: Private Banking with Swiss and International Clients
Private Banking with Swiss and International Clients ♦ World’s leading wealth management company ♦ Clear, market-oriented organization, that meets clients’ country- and region-specific requirements ♦ Stable revenue producer ♦ Continuous strategic developments in traditional and new markets such as C
Slide 16: Domestic Private Banking outside Switzerland
Domestic Private Banking outside Switzerland ♦ Global market share of UBS Private Banking is about 2% ♦ Two-thirds of global Private Banking assets are held onshore ♦ Development of onshore Private Banking markets — tap previously inaccessible money — tap money flowing back from offshore centers ♦ O
Slide 17: Domestic Private Banking outside Switzerland (ctd.)
Domestic Private Banking outside Switzerland (ctd.) ♦ Integrated wealth management approach ♦ Portfolio strategies ♦ Segmentation based on client needs — Entrepreneurs — Professionals — HNWI / Families — Intermediaries / External Asset Managers ♦ Focus on large economies (e.g. UK, Germany, France, I
Slide 18: Key Success Factors ...
Key Success Factors ... Client relationship Core PB competence Brand Advisory Intimacy Confidentiality Competence of Staff Performance Cost, Price Delivery Product Range Infrastructure Management Product Innovation largely PCC largely Warburg & UBS AM Sources: Treacy & Wieserma ab 17 Private Banking
Slide 19: ... are aligned with our Business Model
… are aligned with our Business Model Product Client Infrastructure innovation Relationship Management Economics Early market entry High cost of client Low unit costs are allows for acquisition makes achieved through premium price it imperative to high volume: and large market gain large share of ec
Slide 20: Client Relationship Pays off over Time
Client Relationship Pays off over Time 7 Annual Customer Profit 6 Price premium 5 Referrals 4 Cost Savings 3 Revenue growth 2 Base profit 1 Acquisition cost 0 Year (1) 0 1 2 3 4 5 6 7 Source: Reichheld ‘96 ♦ Acquisition costs: are 8 to 10 times higher than retention costs in service industries ♦ Rev
Slide 21: Business Initiatives
Business Initiatives SECTION 4 ab Private Banking
Slide 22: Value Enhancing Business Initiatives
Value Enhancing Business Initiatives ♦ Style diversification, e.g. acquisition of GAM ♦ Segment specific advisory groups — Global Executives Group — Corporate Advisory Group — Real Estate Advisory Group — Sports and Entertainment Advisory Group ♦ e-services in Private Banking ♦ Projects to grow our
Slide 23: Acquisition of Global Asset Management
Acquisition of Global Asset Management ♦ Global, diversified asset management group ♦ Multi-manager selection increasing availability of different investment styles to Private Banking clients ♦ CHF 21 billion assets under management ♦ 500 employees ♦ 170 mutual funds and unit trusts ♦ Operations in
Slide 24: Global Executive Group
Global Executive Group Entire wealth generating portfolio Income generation/wealth accumulation Personal assets programs “employment relationship asset” Investments Traditional PB focus Value to the client: ♦ Wealth management (financial planning, tax, estate management) ♦ Tailored risk/reward patte
Slide 25: e-services in Private Banking
e-services in Private Banking The Internet as an additional information and communication channel - focused on the individual needs of our Private Banking clients around the globe. Relationship Private Banking only Exclusive Information Transactions Co-operation Market Information within UBS Group I
Slide 26: Range of Products and Services on the Web
Range of Products and Services on the Web E X Individ- ualized C communication/ L advice online U Personalized S optimus-online, AAT Extranet I Transactions 24h Banking; Tradepac; UBS Connect V I Market information UBS Quotes, Fund Gate T Information Y Products, Services, News ab 25 Private Banking
Slide 27: Fund Gate - Web Database for UBS Funds
Fund Gate - Web Database for UBS Funds ♦ Key data ♦ Fund prices ♦ Performance data ♦ Daily updates ♦ Performance charts ♦ Historical data ♦ Structures ♦ Tailor-made queries ♦ Distributions ♦ Publications ♦ Customized fund information ab 26 Private Banking
Slide 28: Conclusion
Conclusion SECTION 5 ab Private Banking
Slide 29: Conclusion
Conclusion ♦ Strength of our existing client franchise ♦ Positioned for growth in domestic and international Private Banking ♦ Clear focus on identified target segments ♦ Substantial investments to enable future growth ♦ Expansion by organic growth and by selective acquisitions ♦ UBS Private Banking
Slide 30: Appendix
Appendix ab ab Private Banking
Slide 31: Private Banking Structure
Private Banking Structure Private Banking Rodolfo Bogni Deputy: Arthur Decurtins Swiss Private Inter- Domestic Products, Clients Banks national Clients Services & clients Logistics Gian Pietro Markus Weiss Georges George Arthur Rossetti Gagnebin Feiger Decurtins ab 30 Private Banking
Slide 32: International Private Banking Locations
International Private Banking Locations Luxembourg Jersey Duesseldorf Frankfurt Hamburg Berlin Chicago Toronto Montreal Offenbach London Stuttgart Paris Munich Vancouver Monaco Milano Stamford Madrid Rome Barcelona Tokyo San Francisco New York Marbella Los Angeles Miami Taipei Nassau Houston Hong Ko
Slide 33: Swiss Private Banking Locations
Swiss Private Banking Locations Schaffhausen · Kreuzlingen · · Winterthur Basel · Wil Aarau · St. Gall · Zurich · • Zurich Airport · Solothurn · Zug Biel · Lucerne · · Berne Neuchâtel · Chur · Davos · · Fribourg • Thun Arosa · Lausanne · · Vevey · Gstaad St. Moritz · Villars · Crans Brig · · Geneva
Slide 34: Domestic and International Expansion
Domestic and International Expansion Organic Acquisitions ♦ Chicago (1999) ♦ Global Asset Management (subject to closing in 2000) ♦ Stuttgart (1999, new branch of SMH in Germany) ♦ Bank of America (Europe, Asia, 1999) ♦ Rome, Bologna (1999), Milan (1996) Pre-merger ♦ Paris (1999) ♦ Schröder, Münchme
Slide 35: Private Banking: Comparative Results
Private Banking: Comparative Results ♦ Negative impacts in CHFm 9M99 9M98 1) 1998 1) 3Q’99 from lower level of client activity and Operating Income 4,413 4,865 5,871 substantial expansion Operating expenses 2,390 2,209 2,736 of domestic PB Net profit before tax 2,023 2,656 3,135 ♦ Acquisition of GAM
Slide 36: Information
Information http://www.ubs.com/e/products.html ab 35 Private Banking
Slide 37: Exclusive Information
Exclusive Information https://www.ubs.com/e/pb/optimus.html ab 36 Private Banking
Slide 38: Relationship
Relationship https://www.ubs.com/e/pb/optimus/opticontact.html ab 37 Private Banking
Slide 39: Fund Gate - since October 1999 on internet
Fund Gate - since October 1999 on internet http://www.ubs.com/fundgate ab 38 Private Banking