Ubs Group Ag · SIX:UBSG
Ubs — Shareholder Meeting (April 2020)
32 slides from Ubs's shareholder meeting presentation, Apr 9, 2020
Slide 1: UBS 2020 Annual General Meeting
UBS 2020 Annual General Meeting Investor Presentation Axel A. Weber Chairman of the Board of Directors This document should be read in conjunction with the UBS Group AG Annual Report 2019, including the UBS Group AG Compensation Report 2019; www.ubs.com/agm April 9, 2020
Slide 2: Important information
Important information Forward Looking Statements: This presentation contains statements that constitute “forward-looking statements,” including but not limited to performance targets, expectations and ambitions, as well as management’s outlook for UBS’s financial performance and statements relating
Slide 3: Topics for discussion
Topics for discussion The Annual General Meeting of UBS Group AG will take place on 29 April 2020 Section 1, pages 3-8 Key highlights of 2019 and business update Section 2, pages 10-16 Compensation-related AGM agenda items Section 3, pages 18-21 Select other AGM agenda items Section 4, page 23 Corpo
Slide 4: 2019 highlights
2019 highlights Delivered solid performance › Net profit 4.3bn, adjusted PBT 6.0bn, diluted EPS 1.14 in mixed market conditions › RoCET112.4% on increasing CET1 capital › 49bn NNM across GWM and AM › Record invested assets GWM 2.6trn; AM 0.9trn › 26bn of net mandate sales; 9bn invested assets in 100
Slide 5: FY19 CET1 capital generation of 4.9bn
FY19 CET1 capital generation of 4.9bn Highly capital-generative business model 2019 CET1 28bn of CET1 capital TBVPS + cumulative cash capital generation generation since 20112 dividend per share since 2011 6% CAGR 4.9 0.8 Repurchased 10.5 Cumulative litigation Cumulative 69m shares 4.2 cash dividend
Slide 6: Delivering competitive returns
Delivering competitive returns Balancing growth, cost and capital efficiency to deliver attractive returns on deployable equity Return on CET1 capital, FY19 18.6% 15.4% 13.4% 13.1% 12.4% 10.6% 9.8% 9.7% 9.3% 5.9% JPM BoA MS Citi UBS GS BNPP HSBC CS Barclays CET1 as % of 100% 97% 102%3 93% 74%4 101%3
Slide 7: COVID-19
COVID-19 Committed to our clients, employees and communities Priorities Business impact › Our key priorities are to safeguard the wellbeing of our › We have seen little to no disruptions in service to our clients and employees, serve our clients and ensure operational continuity have successfully ma
Slide 8: Balance sheet strength
Balance sheet strength Managing our balance sheet prudently, strong capital, liquidity and funding positions Strong capital position Strong credit ratings Strong capital generation Total loss-absorbing capacity (TLAC) UBS AG credit ratings1 89.6 4.9 AA- (negative) Fitch 0.8 Repurchased 69m shares Aa
Slide 9: Appointment of Group Chief Executive Officer
Appointment of Group Chief Executive Officer The Board of Directors has appointed Ralph Hamers as Group CEO effective 1 November 2020 › Ralph is joining UBS after serving as CEO of ING since 2013 › Strong track record as a leader of a global, systemically relevant bank and proven expertise in digita
Slide 10: Topics for discussion
Topics for discussion Section 1, pages 3-8 Key highlights of 2019 and business update Section 2, pages 10-16 Compensation-related AGM agenda items Section 3, pages 18-21 Select other AGM agenda items Section 4, page 23 Corporate social responsibility / sustainability matters 9
Slide 11: Compensation-related AGM agenda items
Compensation-related AGM agenda items Advisory vote: › Agenda item 2. Advisory vote on the UBS Group AG Compensation Report 2019 Binding votes: › Agenda item 8.1. › Agenda item 8.2. › Agenda item 8.3. Approval of the maximum aggregate amount Approval of the aggregate amount of Approval of th
Slide 12: Returns to shareholders of 3.4bn for FY19
Returns to shareholders of 3.4bn for FY19 Bonus pool down 14% YoY, total payout to shareholders stable YoY Returns to shareholders1 and bonus pool Dividend Special dividend Special dividend reserve Buyback Bonus pool 3.6 3.5 3.42 3.4 3.1 3.1 3.2 3.1 2.9 2.8 2.7 2.7 2.4 2.2 1.0 0.7 2012 2013 2014 201
Slide 13: 2019 pay for performance
2019 pay for performance Adjusted PBT down 0.5% YoY while per capita GEB variable compensation down 14% YoY Financial achievements › We delivered solid financial results in mixed market conditions, reflecting the strength of our business model › Adjusted PBT decreased slightly as reduced operating e
Slide 14: Changes to compensation framework and safeguards
Changes to compensation framework and safeguards We maintained the most important elements of our compensation framework, but a holistic review and shareholder feedback over the course of 2019 led to some significant changes Key changes to our compensation framework and related disclosures Cornersto
Slide 15: LTIP performance metrics
LTIP performance metrics Pay-out dependent on the achievement level versus stretching forward-looking absolute and relative performance metrics Absolute performance metric based on return on CET1 capital (RoCET1) RoCET1 (weight: 50%) › Maximum level set at 18% to reflect stretch objective relative t
Slide 16: 2019 compensation framework for GEB members
2019 compensation framework for GEB members 80% of annual performance awards deferred over a period of five years Illustrative example: Payout of performance award¹ Key features Notional additional tier 1 (AT1) capital instruments; 30% of the performance award is granted under DCCP Award vests i
Slide 17: Long-Term Incentive Plan (LTIP)
French cross-border litigation matter impact on compensation Measures taken for 2019 compensation demonstrate Chairman, Group CEO and certain other GEB members alignment with shareholders on the outcome of the French cross-border matter 2019 LTIP awards for GEB members active in March 2017 and unves
Slide 18: Topics for discussion
Topics for discussion Section 1, pages 3-8 Key highlights of 2019 and business update Section 2, pages 10-16 Compensation-related AGM agenda items Section 3, pages 18-21 Select other AGM agenda items Section 4, page 23 Corporate social responsibility / sustainability matters 17
Slide 19: Motion to discharge BoD and GEB for financial year 2019
Motion to discharge BoD and GEB for financial year 2019 Excludes all issues related to the French cross-border matter Motion › The Board of Directors proposes that discharge of the members of the Board of Directors and the Group Executive Board for the financial year 2019 be granted, excluding all i
Slide 20: Proposed dividend payment split in two installments for FY19
Proposed dividend payment split in two installments for FY19 Increasing capital returns to our shareholders Ordinary dividend per share (USD) Special dividend per share (USD) Share buy-back per share (USD) Special dividend reserve per share (USD) 0.20 0.26 0.372 0.26 0.223 0.65 0.69 0.62 0.61 0.54 0
Slide 21: Election of new members to the Board of Directors
Election of new members to the Board of Directors Nathalie Rachou and Mark Hughes nominated for election to the BoD1 of UBS Group AG 6.1. Mark Hughes 6.2. Nathalie Rachou Motion Motion The Board of Directors proposes that The Board of Directors proposes that Mark Hughes be elected as a member of the
Slide 22: Board of Directors – UBS Group AG
Board of Directors – UBS Group AG › The Governance and Nominating Committee uses a competencies and experience matrix as a tool to identify any gaps in the competencies considered most relevant to the BoD, taking into consideration the firm’s business exposure, risk profile, strategy and geographic
Slide 23: Topics for discussion
Topics for discussion Section 1, pages 3-8 Key highlights of 2019 and business update Section 2, pages 10-16 Compensation-related AGM agenda items Section 3, pages 18-21 Select other AGM agenda items Section 4, page 23 Corporate social responsibility / sustainability matters 22
Slide 24: Our sustainability drive
Our sustainability drive UBS is a recognized leader in sustainability, delivering in areas increasingly important to clients What we are doing for clients How we are contributing ourselves Strong growth in core sustainable assets Reduced carbon-related assets Maintained strong position in key ESG ra
Slide 25: Supporting materials
Appendix Supporting materials
Slide 26: UBS Group AG 2020 Annual General Meeting
UBS Group AG 2020 Annual General Meeting Wednesday 29 April 2020 at 10:30am CET Protecting the health of our shareholders and employees is our number one priority As a result of developments around the coronavirus and measures put in place by the Swiss authorities, it will not be possible for shareh
Slide 27: Motion for discharge under Swiss law
Motion for discharge under Swiss law The impact of the discharge vote1 differs depending on the different types of claims and extends only to disclosed facts at the time of the vote Claims for damages suffered › The grant or non-grant of the discharge has no effect on the ability of a shareholder to
Slide 28: Swiss withholding tax impact on dividend payment
Swiss withholding tax impact on dividend payment In May 2019, the Swiss electorate approved corporate tax reform in Switzerland › Through the financial year 2018, UBS Group AG dividend payments had been fully paid out of capital contribution reserves and therefore not subject to the Swiss withholdin
Slide 29: Total compensation for the Group CEO
Total compensation for the Group CEO Awarded vs. realized pay illustrates the impact of deferrals over time; Group CEO owns 4.0m shares, of which 2.2m vested1 › Realized pay is the natural culmination of awards granted and approved by shareholders in previous years › Reflecting the long-term nature
Slide 30: Board of Directors – UBS Group AG
Board of Directors – UBS Group AG › The Board of Directors (BoD), led by the Chairman, is composed of 12 members with ultimate responsibility for the success of the Group › The BoD proposes the Chairman, who is elected by shareholders at the AGM, as are the other individual BoD members and the membe
Slide 31: Succession planning
Succession planning One of the key responsibilities of both the BoD and the GEB Across all divisions and regions, an inclusive talent development and succession planning › Our strategy and the business environment process is in place that is intended to foster the personal development and Groupwide
Slide 32: 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