Slide 1: 2014 Investor Update
2014 Investor Update Executing Our Strategy and Delivering Returns Sergio P. Ermotti Group Chief Executive Officer May 6, 2014
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: Executing our strategy to further unlock UBS's potential
Executing our strategy to further unlock UBS's potential What we have delivered Management priorities ✓ Implemented a clear strategy which focuses on the strengths of our franchise Remain disciplined on strategy execution while enhancing capabilities and profitability Growing profits in ✓ Reduced gr
Slide 4: Our franchise is unrivaled with compelling growth prospects
Our franchise is unrivaled with compelling growth prospects Our businesses Our objectives World’s leader in HNW and Remain leading large-scale wealth manager in the world Wealth UHNW banking with unrivaled Gain market share in established markets, and capture wealth management scope and scale cr
Slide 5: Broadly diversified profit sources
Broadly diversified profit sources All business divisions were profitable in each region in 2013 Europe, Middle East, and Africa1: CHF 1.5 billion FY13 PBT1, CHF billion 0.4 0.0 1.1 Americas: CHF 1.7 billion FY13 PBT1, CHF billion 0.1 Switzerland: CHF 2.7 billion Asia Pacific: CHF 1.5 billion FY13 P
Slide 6: We continue our focus on cost reduction
We continue our focus on cost reduction CHF 2.1 billion net cost reduction target versus FY131 As of 31.12.13, adjusted operating expenses, CHF billion 5.4 • CHF 1.4 billion annual net cost savings in Corporate Center by year-end 20152,3 1.5 3.9 • CHF 0.7 billion annual net cost savings as we comple
Slide 7: Capital strength is the foundation of our success
Capital strength is the foundation of our success Three-pronged approach to capital and balance-sheet management Basel III CET1 ratio Basel III CET1 ratio post-stress1 Swiss SRB leverage ratio fully applied fully applied CHF billion Expected direction 5.0% based on ~3.6% our plans 3.8% 13.2% ~2.4% 1
Slide 8: Managing down the Non-core and Legacy Portfolio
Managing down the Non-core and Legacy Portfolio Tight risk control and disciplined execution to free up capital and reduce costs RWA Cumulative RWA reduction and quarterly revenues CHF billion RWA in CHF billion and revenues in CHF million 222 (42)% 49 (27) (127) (33) 103 (5.4) 14 (25.7) (35.3) (47.
Slide 9: Further adapting to global regulatory changes
Further adapting to global regulatory changes Modifying legal structure to enhance resolvability and to improve capital returns potential Intention to establish a Holding company to be Group holding company formed through share- for-share exchange Measures announced previously offer to be launched
Slide 10: Retail & Corporate
Retail & Corporate Stable profits and strong momentum in an attractive market, high degree of integration with our other Swiss-based businesses Basel Retail: ~2.5 million clients Zurich Corporate2: ~130,000 clients ~1 in 3 households ~50% of Swiss-domiciled corporates Best Bank in ~1 in 5 mortgages
Slide 11: Investment Bank
Investment Bank Client-focused Investment Bank excelling in targeted segments Investor Client Services Corporate Client Solutions Leading Equities franchise Focused FRC1 franchise Strong solutions and advisory businesses #1 in Cash globally2 Top FX and Precious Metals House6,7 Financial Advisor of t
Slide 12: Group targets
Group targets Basel III CET1 ratio Basel III RWA Swiss SRB leverage ratio fully applied fully applied, CHF billion CHF billion Expected direction ~258 5.0% based on 13.2% 13.0% ~3.6% our plans 227 ~53 <215 <200 3.8% ~9.8% ~2.4% 81 1,206 988 900 31.12.12 31.3.14 Target1 31.12.12 31.3.14 31.12.15 31.1
Slide 13: Firmly committed to returning capital to shareholders
Firmly committed to returning capital to shareholders Our strategy supports an attractive capital returns program Progressive capital returns Future dividend policy • CHF 0.25 per share dividend proposed for 2013 • After achieving Basel III fully applied CET1 ratio of 13% and CET1 ratio of a 10% min
Slide 14: Key messages
Key messages Our unique business mix is focused on cash flow generative businesses with attractive risk/reward profiles to deliver high quality earnings We continue our focus on costs, with targeted cost reductions of CHF 2.1 billion, while also investing in our businesses We are focused on running
Slide 15: Important information related to numbers shown in this presentation
Important information related to numbers shown in this presentation Use of adjusted numbers Adjusted results are non-GAAP financial measures as defined by SEC regulations. Refer to page 12 of the first quarter 2014 report and pages 76-77 of our 2013 annual report for an overview of adjusted numbers.