Ubs Group Ag · SIX:UBSG
Ubs — Investor Day (May 2005)
30 slides from Ubs's investor day presentation, May 13, 2005
Slide 1: Investor Day 2005 Wealth Management & Business Banking
Investor Day 2005 Wealth Management & Business Banking Friday 13 May, 2005 Marcel Rohner, Chairman & CEO You & Us
Slide 2: The Making of UBS-WM&BB
The Making of UBS-WM&BB Merger of two separate divisions into one powerful business group Universal Bank in Switzerland UBS Wealth Management & Global Wealth Business Banking Management ] H Q L W U D 0 K 7 R W R K 3 Capturing synergies and eliminating redundancy 1
Slide 3: Wealth Management
Wealth Management 36 UBS
Slide 4: Wealth Management—Position in 2000
Wealth Management—Position in 2000 Strengths Weaknesses ♦ Global leader in WM ♦ Reactive approach ♦ Longstanding client relationships ♦ Inconsistent service ♦ Geographic breadth ♦ Spillover from merger ♦ Product & services breadth ♦ Limited European on-shore presence ♦ Innovative e-services ♦ Under-
Slide 5: Key strategic initiatives 2000-2004
Key strategic initiatives 2000-2004 Four-step advisory experience Aggressively grow client advisor force globally European Wealth Management Initiative Asia expansion Bolt-on acquisitions Alternative product development and marketing Build-up WM product positioning framework E-banking strategy Devel
Slide 6: Wealth Management—Results
Wealth Management—Results 36 UBS
Slide 7: Wealth Management - Invested assets
Wealth Management - Invested assets Invested assets under management USD bn 1,000 878 800 Wealth Management USA 600 496 400 341 257 249 201 192 200 157 147 136 0 UBS WM1 Credit Citigroup Merrill HSBC Bank of JP Morgan Morgan Wachovia Deutsche Suisse Lynch America Stanley Bank Source: Wealth Partners
Slide 8: Wealth Management - Financial development
Wealth Management - Financial development A strong improvement in the NNM intake made up for the asset decrease due to the USD fall Net new money Invested assets CHF bn CHF bn 50 800 778 42 40 750 30 700 20 650 10 0 600 2000 2001 2002 2003 2004 2000 2001 2002 2003 2004 Income Pre-tax profit & cost/i
Slide 9: Wealth Management—Action Steps
Wealth Management—Action Steps
Slide 10: Four-Step Advisory Experience
Four-Step Advisory Experience Perfecting our client experience Intense client focus! 9
Slide 11: Business goals and business priorities
Business goals and business priorities All activities are geared to promote our key value drivers and hence support the achievement of our strategic goals Strategic Business Priorities Value Drivers1 Goals Return Return on Assets on Assets2 103 bps Perfecting our client Income experience Total Inves
Slide 12: Wealth Management—Client advisor growth
Wealth Management—Client advisor growth Since 1999, we strongly invested into our client advisor force, while keeping non-client-facing functions very lean Headcount 7,000 6,350 + 5% 6,000 5,000 4,000 3,744 3,000 + 53% 2,000 1,000 0 2000 2001 2002 2003 2004 Client Advisors (CA) Non-CA Headcount 11
Slide 13: Wealth Management - Client segmentation
Wealth Management - Client segmentation We have strongly increased our asset share in the high- growth ultra-rich segment 2002 2004 > CHF 10 m > CHF 10 m < CHF 1 mn < CHF 1 m 34% 41% 19% 18% 37% 29% 10% CHF 1-5 m CHF 1-5 m CHF 5-10 m 12% CHF 5-10 m 12
Slide 14: Product mix change supports gross margin
Product mix change supports gross margin The shift into value-added services has resulted in a gross margin increase Invested assets by asset classes 2000 2004 Money Market Fiduciary Money Market Fiduciary 12% 3% Others Others 10% 10% 13% 12% Equities 26% 27% Equities 18% 22% Bonds Bonds 22% 25% Mut
Slide 15: Wealth Management—Acquisitions
Wealth Management—Acquisitions The string of first-rate firms which we bought their wealth management operation shows our success in that business Etra SIM S.p.A Total acquired assets: CHF 50 bn Dresdner Latin America Julius Bär North America Sauerborn Trust Amex Luxembourg Scott Goodman Harris Lain
Slide 16: Wealth Management - Build-up European presence
Wealth Management - Build-up European presence In the last four years we almost trebled the number of European domestic locations Locations 2000: 15 Locations 2004: 42 France UK France +7 Italy +5 Paris London Bordeaux Brescia Cannes Firenze Germany Lille Napoli Lyon Padova Berlin Marseille Torino D
Slide 17: European Wealth Management—Development
European Wealth Management—Development Since 2000, we have continued to hire qualified client advisers, which lead to a sustainable, significantly increased asset base Client advisors Net new money 1,000 CHF bn 838 15 CAGR1: 47% Total: CHF 38 bn 13.7 800 600 10 400 5 200 na2 0 0 2000 2001 2002 2003
Slide 18: Asia Pacific Wealth Management—Development
Asia Pacific Wealth Management—Development In Asia Pacific, we have achieved the market leader position in wealth management UBS' Asia Pacific WM Locations Client advisors 403 400 CAGR: 23% 300 200 100 0 2000 2001 2002 2003 2004 Invested assets bn CAGR: 10% CAGR: 21% 79 80 69 Onshore booking 60 Japa
Slide 19: Wealth Management—Vision 2010
Wealth Management—Vision 2010
Slide 20: Wealth Management—Asset development
Wealth Management—Asset development The global wealth management market is expected to strongly grow in the next years Invested assets - Global wealth management market1 CHF bn 61,000 60,000 CAGR's MEA: 5.0% 43,000 40,000 Americas: 6.0% 20,000 APAC: 5.7% Europe: 6.1% 0 2004 2010 Europe Asia Pacific
Slide 21: Wealth Management—Capturing growth
Wealth Management—Capturing growth Optimal Client Geographic Segmentation Expansion ♦ Exploit growth ♦ Asia Pacific opportunities in selected ♦ Europe client segments ♦ Focusing on customised solutions Growth DH/CA Existing Product Franchise Innovation ♦ Market share ♦ Market development ♦ Share of
Slide 22: Wealth Management—Way forward to 2010
Wealth Management—Way forward to 2010 Given WM's operating leverage, it is important to focus on growing revenues Hire and retain top client advisors Growth in Asia Pacific Further growth in Europe Refine product mix Use synergies through one-firm approach Continued cost discipline 21
Slide 23: Business Banking Switzerland
Business Banking Switzerland
Slide 24: Business Banking - Position in 2000
Business Banking - Position in 2000 Business Banking is the market leader in Swiss retail and commercial banking Strengths Weaknesses ♦ Service provider to all divisions in ♦ Redundancy in IT, business and Switzerland logistic processes ♦ Comprehensive multi-channel ♦ Expensive physical distribution
Slide 25: Business Banking—Improved credit portfolio
Business Banking—Improved credit portfolio The share of mortgages in our credit portfolio has been strongly increased over the last years 2000 2004 Recovery Portfolio Recovery Portfolio 10% 3% Commercial Credits Commercial Credits 16% 15% 75% 81% Mortgages Mortgages 24
Slide 26: Business Banking—Improved credit portfolio
Business Banking—Improved credit portfolio Credit exposure of recovery portfolio has been reduced consistently over the last seven years CHF bn 30 Inflow into Recovery -85% 2004 20 2003 2002 2001 2000 10 1999 4.4 1998 1997 and before 0 1997 1998 1999 2000 2001 2002 2003 2004 25
Slide 27: Business Banking—Development
Business Banking—Development Reductions in the branch network and headcount led to a strongly improved cost / income ratio CHF bn % 2.5 70 CAGR: 11% 2.0 2.0 66 1.5 62 60% 1.0 58 0.5 54 0 50 2000 2001 2002 2003 2004 Profit Cost / income ratio 26
Slide 28: Business Banking—Way forward to 2010
Business Banking—Way forward to 2010 Cost discipline Strict focus - growth in home market, no geographic expansion Keep market share of 25-35% and increase for certain areas 27
Slide 29: Excellence takes place when people are committed
Excellence takes place when people are committed Wherever in the world clients will enter a UBS office ... You & Us … they will be offered a completely consistent, high quality and truly differentiated UBS client experience 28
Slide 30: Investor Day 2005 Wealth Management & Business Banking
Investor Day 2005 Wealth Management & Business Banking Friday 13 May, 2005 Marcel Rohner, Chairman & CEO You & Us