Ubs Group Ag · SIX:UBSG
Ubs — Investor Day (May 2005)
20 slides from Ubs's investor day presentation, May 13, 2005
Slide 1: Investor Day 2005 Asia Pacific
Investor Day 2005 Asia Pacific New York, 13th May 2005 Rory Tapner, Chairman & CEO UBS Asia Pacific You & Us
Slide 2: UBS position in Asia Pacific - 1 January 2000
UBS position in Asia Pacific - 1 January 2000 A strong base, but notable gaps Strengths Weaknesses ♦ #1 in Asian Equities (ex-Japan) ♦ Underweight in Japan Equities revenues, weak in Equity Research ♦ #1 in Australia across Investment Banking and Equities ♦ Low Japanese IBD and FIRC revenues vs. int
Slide 3: Key accomplishments since 2000 in APAC
Key accomplishments since 2000 in APAC Regional ♦2004 USD revenue >40% higher than previous record in 2000 ♦2000-2004 USD revenue growth: FIRC >80%; WM >90%; Global AM >140% ♦Unique multi-year leadership in pan-Asian Equities ♦Regional support functions hubbed into Singapore to lower costs Japan ♦Co
Slide 4: Re-balancing of portfolio in APAC, 2000 vs 2004
Re-balancing of portfolio in APAC, 2000 vs 2004 Revenue by business 2000 2004 WM and Global WM and AM FIRC Global FIRC AM IBD IBD Equities Equities Better balance – FIRC, WM and Global AM have increased their weighting 3
Slide 5: Position today – UBS credentials in Asia Pacific
Position today – UBS credentials in Asia Pacific A leading firm in our chosen businesses #1 in Wealth Management #1 in Equities (consistently, and including Japan) Consistently top 3 in IBD (ECM, DCM, M&A) A leading and fast growing FIRC business A fast growing AM business with new markets to enter
Slide 6: Regional footprint
Regional footprint Multi-local presence ◆ 19 locations in 13 countries/territories Peoples’ Korea Japan Republic of ◆ Regional hubs are China Tokyo, Hong Kong, India Taiwan Singapore and Sydney Hong Kong Philippines Thailand ◆ Consistent local presence throughout Malaysia the cycle Singapore ◆ Signi
Slide 7: Investment Banking Fees – Asia Pacific 2002/2004
Investment Banking Fees1 – Asia Pacific 2002/2004 USD m 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 2002 2003 2004 India Taiwan Hong Kong South Korea SE Asia2 China Australia Japan 1 Source: Freeman 2 Singapore, Philippines, Malaysia, Thailand, Indonesia 6
Slide 8: Equities Commissions – Asia Pacific 2002/2004
Equities Commissions1 – Asia Pacific 2002/2004 USD m 1,600 1,400 1,200 1,000 800 600 400 200 0 2002 2003 2004 India2 Taiwan2 Hong Kong South Korea SE Asia3 China4 Australia Japan5 1 Source: UBS estimates 2 Foreign only 3 Singapore, Philippines, Malaysia, Thailand, Indonesia 4 Equities commissions ge
Slide 9: There’s more to life than China
There’s more to life than China ◆ IB fee pool plus secondary equities data accentuate the immediate-term importance of Australia, Japan and South East Asia ◆ If debt, asset management and wealth management were included, the importance of Japan, Singapore, South East Asia, Australia and Taiwan, rela
Slide 10: Relative positioning of Asia Pacific vs RoW
Relative positioning of Asia Pacific vs RoW Asia Pacific is 25 - 35% of the world GDP1 2004 Equity market value2 HNWI wealth pool3 Nominal PPP as at Dec 2004 2003 Asia Pacific 24% 36% 26% 23% EMEA 39% 33% 28% 35% North America 32% 23% 45% 30% Latin America 5% 8% 1% 13% Total 100% 100% 100% 100% ♦ Re
Slide 11: Characteristics of the region
Characteristics of the region Relative language Complex mix of barriers cultures Active Weak regional regulators economic linkages, now strengthening Historically volatile Timezone is - politically and challenging for economically global management However, ♦ To democracies from autocracies in two d
Slide 12: Asia Pacific is geographically vast
Asia Pacific is geographically vast 4 or 5 distinct sub-regions - each diverse in itself Seoul 3.5hrs Tokyo Beijing 4hrs 3.0hrs Hong Kong Mumbai Taipei 5.5hrs 1.5hrs Tokyo-Sydney 9.5hrs Singapore 3.5hrs Jakarta 4.0hrs Sydney- Mumbai 13.5hrs Europe-HK: 11.5 hrs Sydney NY-HK: 16 hrs 9hrs 11
Slide 13: China and India – the emerging giants
China and India – the emerging giants China India ♦ Population of 1.3 billion ♦ Population of 1.1 billion ♦ 23 provinces (plus HK & Macau) ♦ 29 states ♦ Mainly Buddhist / Taoist ♦ Mainly Hindu ♦ “People’s Republic” since 1949 ♦ Independence from Britain in 1947 ♦ Economic reforms begun in 1978 ♦ Eco
Slide 14: Industry trends
Industry trends A number of factors will influence our success Competition is intense Wealth Management is competing against bank branch networks of “mega” banks, e.g. HSBC, Citigroup China has potential for shocks, not just growth Ever tougher (and still diverse) regulatory environment Shortage of
Slide 15: UBS revenue sourced from Asia Pacific
UBS revenue sourced from Asia Pacific 2004 vs 2003 – growth across all businesses and sub-regions % 60 55% 50 47% 40% 40 35% 35% 30 27% 20 12% 10 0 Investment Global Wealth Japan Asia Australia UBS Bank Asset Mngt Mngt (ex Japan) New Zealand 1 Based on internal management accounting USD figures 14
Slide 16: The integrated model in Asia Pacific
The integrated model in Asia Pacific Environment ♦ Many shared clients - e.g. family owned companies ♦ Relatively small organisation, but spread out Strengths ♦ Group-wide management committees ♦ Consistent cross-business HR policies ♦ High level of shared services ♦ Co-ordinated country strategies
Slide 17: Opportunities for further growth
Opportunities for further growth There are many growth opportunities in APAC both by markets and by businesses Domestic WM, domestic IBD/FIRC/Equities, Global AM, Japan Strategic markets FIRC products (e.g. ABS) (medium term) China Fund Management JV, Beijing branch expansion / RMB licence India Mum
Slide 18: Goal 2010
Goal 2010 Our strategic vision for Asia Pacific Asia Pacific contributes 15-20% of UBS Group revenues Extend #1 lead in WM and Equities, maintain top 3 in IBD, plus achieve consistent top 3 position in FIRC businesses Continue to build China to become 1st or 2nd largest revenue contributor of countr
Slide 19: How do we get there?
How do we get there? Multiple streams Organic growth to fill gaps, including selective strategic hires Acquisitions where available and suitable Joint ventures where necessary Focus on regulatory and operational risk mitigation Enhance the integrated model – client share of wallet Pilot new ideas 18
Slide 20: Investor Day 2005 Asia Pacific
Investor Day 2005 Asia Pacific New York, 13th May 2005 Rory Tapner, Chairman & CEO UBS Asia Pacific You & Us