Ubs Group Ag · SIX:UBSG
Ubs — Investor Day (November 2009)
24 slides from Ubs's investor day presentation, Nov 17, 2009
Slide 1: Group Strategy and Transformation
Group Strategy and Transformation Ulrich Körner, Group Chief Operating Officer and CEO Corporate Center Investor Day – November 17, 2009
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: UBS is going through a major transformation change
UBS is going through a major transformation change Focus of today: stabilization of UBS and strategic direction going forward UBS today Grow profitably Step-up performance & reposition UBS Stabilize UBS 2
Slide 4: Key messages
Key messages 1. UBS is financially stable, strong and secure 2. UBS is excellently positioned to take advantage of the changing market environment 3. UBS will transform the way it operates and step-up performance to deliver higher returns 3
Slide 5: We have stabilized the bank's financial condition
We have stabilized the bank's financial condition ♦ Tier 1 ratio: increased from 11.0% in 4Q08 to 15.0% in 3Q09 De-risking ♦ Leverage ratio (FINMA): improved from 2.5% in 4Q08 to 3.5% in 3Q09 and de- leveraging ♦ Balance sheet size (IFRS): reduced by 27% over the past 9 months ♦ Risk profile: reduce
Slide 6: Cost reduction – program on track to reach CHF 3.5 – 4 billion target
Cost reduction – program on track to reach CHF 3.5 – 4 billion target in annual equivalent run-rate by 2010 Cost run-rate excluding significant non-recurring items and variable personnel expenses 2008 2010 Total 23.4 <20 (CHF billion) ~3.5 CHF 3.5 billion cost reduction ♦ Benefits all business ~0.5
Slide 7: Key messages
Key messages 1. UBS is financially stable, strong and secure 2. UBS is excellently positioned to take advantage of the changing market environment 3. UBS will transform the way it operates and step-up performance to deliver higher returns 6
Slide 8: New paradigm in the banking industry
New paradigm in the banking industry From… To… Capital / ♦ Excessive market liquidity and high ♦ Scarce capital and reduced risk risk risk-taking tolerance ♦ Higher risk tolerance ♦ Strong need for transparency and Clients ♦ General confidence in the banking trusted relationships system ♦ Focus on s
Slide 9: UBS is strongly positioned to deliver on the new key success factors
UBS is strongly positioned to deliver on the new key success factors New success factors UBS strongly positioned Ability to attract client flows Leading Wealth Management 1 franchise Global access to client demand Unique combination of asset 2 gathering and investment banking with a global footprint
Slide 10: Leading wealth management franchise
1 Leading wealth management franchise Leading wealth manager with Top positions in most markets highest quality of assets UBS 3Q09 AuM1 of CHF 1.7 trillion, #2 by AuM ♦ #1 wealth manager by AuM outside globally the US (by client domicile)2 Breakdown by client domicile – #1 in CH Wealth CH – #1 in EU
Slide 11: Unique combination of asset gathering and investment banking with a global footprint
Unique combination of asset gathering and investment 2 banking with a global footprint UBS today has CHF 2.3 trillion in AuM … in combination with and is a truly global investment banking asset gatherer (WM&AM)… Adjusted operating income2 3Q09 UBS AuM by region1, 2008 = CHF 7.4 billion, by business
Slide 12: Flow/fee business dominating UBS revenue mix
3 Flow/fee business dominating UBS revenue mix Flow/fee business: ~90% of UBS revenue with top positions… …very stable and resilient over time CHF billion Examples and market positioning 8 ♦ Investment funds (CH) #1 ♦ Mandates (WM) #1 6 ♦ Res. mortgages (SB) #1 4 ♦ FX #2 ♦ Cash EQ #3 2 ♦ US Wealth M
Slide 13: Leader in APAC and leading wealth manager in other growth markets
Leader in APAC and leading wealth manager in other 4 growth markets APAC ♦ Strongest combi- nation of IB and WM in the region #1 “Best Private LatAm Bank”2 ♦ Leading cross- #1 “Best Investment border wealth Bank”2 manager ♦ Leading foreign #2 “Best Private asset gatherer Banking Service Overall”1 ME
Slide 14: UBS strongly positioned to capture high growth revenue pools
UBS strongly positioned to capture high growth revenue pools UBS active in 26% of global revenue pools, which accounts for 55% of cumulative growth until 2012. Two-thirds of this growth is in businesses where UBS has top 5 positions Global revenue pool, CHF billion CAGR CHF 275 billion CHF 3,200 bil
Slide 15: Key messages
Key messages 1. UBS is financially stable, strong and secure 2. UBS is excellently positioned to take advantage of the changing market environment 3. UBS will transform the way it operates and step-up performance to deliver higher returns 14
Slide 16: UBS aspiration — leading client-focused global bank
UBS aspiration — leading client-focused global bank ! The #1 global bank for HNW/UHNW clients ! The #1 bank in Switzerland ! A top-tier bank in every growth region ! A leading client-focused investment bank ! Economically profitable in every segment, market and business we operate 15
Slide 17: New UBS – key strategic thrusts
New UBS – key strategic thrusts Re-focusing business portfolio Clients to fully capitalize on the strengths Businesses New UBS: Optimize strong WM/IB/AM combination to generate more value from our assets Geographies Leading client- focused Transforming the way we operate Reputation global bank to fr
Slide 18: New UBS – refocusing business portfolio
New UBS – refocusing business portfolio We will… … optimize strong WM/IB/AM combination to generate more value from our assets … Build on our strong WM franchise – Transform our cross-border business model – Increase/strengthen onshore footprint and focus on efficiency and execution … Transform our
Slide 19: New UBS – transforming the way we operate
New UBS – transforming the way we operate We will… … institutionalize three strategic guiding principles: reputation, integration, execution … Put the clients at the center of everything we do Reputation … Treat reputation and people as our most valuable assets … Ensure discipline and implement best
Slide 20: New UBS – integration as a major underlying driver
New UBS – integration as a major underlying driver Wealth Management From…. To… "One brand" as the main Integration as the key underlying force integrating factor of the new UBS ♦ Common business goals and holistic group ♦ Silo-business culture portfolio view ♦ Systematic approach with explicit ♦ Li
Slide 21: New UBS – several measures already in place to transform the way we operate
New UBS – several measures already in place to transform the way we operate Governance & structures Strengthened UHNW client service with new centralized set-up Switzerland retail, corporate, WM, IB and AM businesses under one leadership Enhanced management processes and centralized key control f
Slide 22: Significant PbT improvement target in the medium term, with a smaller and higher quality balance sheet
Significant PbT improvement target in the medium term, with a smaller and higher quality balance sheet Significant PbT improvement … with smaller and higher quality targeted in the medium term… balance sheet than in the past Profit before tax (CHF billion) Medium 20091 term ~19 ~15 Balance sheet 1.5
Slide 23: Way forward – executing on UBS transformation
Way forward – executing on UBS transformation New UBS strategic direction is the basis for future growth UBS today Grow profitably Step-up performance & reposition UBS Stabilize UBS 22
Slide 24: Disclaimer
Disclaimer This presentation and the information contained herein is provided solely for information purposes, and is not to be construed as a solicitation of an offer to buy or sell any securities or other financial instruments in Switzerland, the United States or any other jurisdiction. No investm