Ubs Group Ag · SIX:UBSG
Ubs — Investor Day (May 2005)
21 slides from Ubs's investor day presentation, May 13, 2005
Slide 1: Investor Day 2005 Wealth Management USA
Investor Day 2005 Wealth Management USA New York, 13th May 2005 Mark Sutton, Chairman & CEO You & Us
Slide 2: Business Overview
Business Overview 36 UBS
Slide 3: PaineWebber to UBS
PaineWebber to UBS 1999 (PaineWebber) Today (WM-USA) Benefits Attracting global Global products and investors & cache as WM US-centric broker firm services capabilities leader Broader range of wealth Tangible business growth Product limitations in management products in HNW & UHNW sectors certain ar
Slide 4: Wealth Management USA vs “Old PaineWebber”
Wealth Management USA vs “Old PaineWebber” PaineWebber Wealth Investment Global AM Wealth January 2000 Management Bank Management USA - Today Non-US Private Clients Private Private Client Clients Group Mitchell Hutchins Fixed Income: ♦Mortgage- In 1999, percent of Backed PaineWebber’s ♦Asset-Backed
Slide 5: New products and solutions
New products and solutions Synergies between UBS’ core businesses provide new solutions to meet client needs: ♦ Enhanced products: — Separately managed accounts — Multi-asset portfolio management ♦ Portfolio advisory — UBS Global Asset Management asset allocation models — Global investment expertise
Slide 6: Wealth Management USA — profile
Wealth Management USA — profile Western Central Eastern NH WA ME VT ND MN MT OR ID WI NY MA Key Figures RI SD WY MI CT PA Client relationships ~2 million IA NE NJ OH NV IL IN DE UT CO WV CA KS MO KY MD Employees1 17,351 NC OK AR TN SC Financial advisors1 7,403 AZ NM MS AL GA Invested assets (USD)1 5
Slide 7: Integrated business model
Integrated business model Example: Investment Bank Global Asset Management ♦ Order flow / ♦ Management fees global execution ♦ Corporate finance leads ♦ Structured ♦ UBS Bank USA ♦ Mutual funds products portfolio mgmt. distribution advice ♦ Syndicate ♦ MAPS/Access ♦ Global research ♦ Hedge funds ♦ E
Slide 8: Key Developments / Accomplishments
Key Developments / Accomplishments 7
Slide 9: Highlights
Highlights 2004 operating profit1 highest since acquisition Invested assets USD 561bn2, up 22% since 2001 2004 recurring income 47% of total revenues vs. 41% in 2001 UBS Bank USA launched in 2003, deposits USD 14.9bn2 2004 market share 15.6% vs. 13.8% in 20013 Financial advisor productivity at 115%
Slide 10: Momentum and growth…
Momentum and growth… Market share1 Productivity as % of industry average1 (measured in terms of compensable revenues) +1.8pp +13.2pp % % 16 15.6 120 15.2 14.9 115 115 115 111 14 13.8 110 105 12 102 100 10 95 2001 2002 2003 2004 2001 2002 2003 2004 Sources: company reports and a leading industry surv
Slide 11: P&L key performance indicators
P&L key performance indicators1 Operating income Performance (excl. acquisition costs) (before tax and acquisition costs) USD m +8.5% USD m +26.2% 5,000 700 4,266 559 4,048 3,856 3,933 600 4,000 500 410 410 443 3,000 400 2,000 300 200 1,000 100 0 0 2001 2002 2003 2004 2001 2002 2003 2004 Cost / inco
Slide 12: Invested assets / recurring income
Invested assets / recurring income1 Invested assets Recurring income USD bn USD m +9.8% +19.5% 600 2,200 561 2,006 550 2,000 511 500 1,800 1679 460 1,646 1,618 450 1,600 423 400 1,400 350 1,200 300 1,000 2001 2002 2003 2004 2001 2002 2003 2004 1 Numbers prior to 2003 have not been restated Average r
Slide 13: UBS Bank USA
UBS Bank USA1 One of the top 50 banks in the US…2 Assets USD 17.6bn Loans USD 7.2bn Deposits USD 14.9bn 1 Figures as of Dec-04 2 Source: American Banker April 2005 (rating based on deposits as of Dec-04) 12
Slide 14: Opportunities and Challenges
Opportunities and Challenges 13
Slide 15: Opportunities
Opportunities Long term outlook for the business is strong and our strategy exploits powerful market trends Large and growing market Capitalizing on demographic trends US households financial assets (USDbn) Increase US Population (in millions) 36,759 from 1990 40,000 350 309 300 40 +29% 30,000 250 8
Slide 16: Challenge to deliver the wealth management model
Challenge to deliver the wealth management model No competitor has yet executed in scale Traditional Wealth Management Model Holistic Wealth Management Model Insurance Trust Private Brokerage Bank ♦ Investment management ♦ Personal and business ♦ Financial planning lending ♦ Cash flow optimization ♦
Slide 17: Wealth Management USA: How we differentiate ourselves
Wealth Management USA How we differentiate ourselves… ♦ Global platform of wealth management tools, services Global presence and solutions and capabilities ♦ Sharing “best practices”, client successes and personnel Excellent ♦ Holistic consultative wealth management approach products & ♦ Integrated
Slide 18: Challenge to further improve profitability
Challenge to further improve profitability Competitors with lower cost / income ratio enjoy the benefits of greater scale Key drivers to improve profitability Increase scale Develop higher ♦ Drive FA growth Foster further margin products ♦ Increase asset base integration ♦ Acquisition and services 1
Slide 19: 2005 and beyond
2005 and beyond Continued organic growth on existing business supported by new initiatives Trends Strategic responses Initiatives Blur of Private Wealth financial ♦ Foster holistic advisory process to Management deliver client experience services Client Accounts / Card Program Increasingly ♦ Deliver
Slide 20: Products & services - Growth opportunities
Products & services - Growth opportunities Six major initiatives currently in progress to expand our product offerings and to capitalize on market trends Provide ultra-wealthy individuals with specialized advice and Private Wealth services Management ♦ Gain market share Relaunch of RMA account in co
Slide 21: Investor Day 2005 Wealth Management USA
Investor Day 2005 Wealth Management USA New York, 13th May 2005 Mark Sutton, Chairman & CEO You & Us