UBS Group AG · SIX:UBSG
UBS — Debt Investor Presentation (June 2021)
31 slides from UBS's debt investor presentation, June 2021
Slide 1: UBS Green Funding Framework
UBS Green Funding Framework Investor Presentation June 2021
Slide 2: Table of contents
Table of contents Section 1 UBS's sustainability strategy 4 Section 2 UBS Green Funding Framework 13 Section 3 1Q21 financial update 19 1
Slide 3: Disclaimer
Disclaimer For marketing and information purposes of professional and sophisticated investors only. Before investing in a product please read the latest prospectus carefully and thoroughly. The information and opinions contained in this presentation have been compiled or arrived at based upon inform
Slide 4: Executive summary
Executive summary Green bonds are part of our sustainability strategy UBS 1Q21 financial highlights › Natural continuation of UBS's sustainability agenda › Building on client momentum with record invested across the firm assets and loan balances, and highest transaction- based revenues in a decade a
Slide 5: The shape of UBS
The shape of UBS Asset Management Client centric Businesses1 10% Our strategy is centered around our clients: how we can make the most Personal & of our capabilities across the firm to help them achieve their financial Corporate Banking 15% goals, whether they are wealthy individuals, retail clients
Slide 6: UBS's sustainability strategy
Section 1 UBS's sustainability strategy
Slide 7: Purpose, vision and strategic imperatives
Purpose Reimagining the power of investing. Connecting people for a better world. Client promise Vision Strategic imperatives Personalized Convene THE global ecosystem for Clients, Connections, Contributors Relevant investing where thought leadership On-time is impactful, people and ideas are Focus
Slide 8: Sustainability strategy
Sustainability strategy Our commitment Our ambition Our climate strategy We want to be the financial To be a leader in Protecting our own assets provider of choice for clients sustainable finance Limiting risk appetite for carbon-related assets and across all client segments who wish to mobilize cap
Slide 9: Recent announcements
Recent announcements Three focus areas to maximize our impact New governance to drive execution › GEB-level leadership to lead firm wide sustainability and impact efforts › Sustainability targets set for all GEB members Planet: Climate remains at the forefront Net Zero for the 21st century1 People:
Slide 10: Our governance for sustainability and impact at UBS
Our governance for sustainability and impact at UBS Chief Sustainability Officer Office of Sustainability: sets and helps implement sustainability strategy, governs our Group-wide sustainability efforts External Engagement: management of our external relationships with standard setters and the indus
Slide 11: Our long history in sustainability
Our long history in sustainability 1954 1997 2006 2014 2017 2019 2021 Beginnings of First Socially Introduction of Founding UBS in UBS Asset Banning project- Commitment to Community Affairs Responsible comprehensive Society, a program to Management level financing on net zero scope1, 2 Investment (S
Slide 12: Achievements, progress and goals
Achievements, progress and goals 11
Slide 13: Key achievements in 2020
Key achievements in 2020 Global Wealth Personal & Asset Investment Group Management Corporate Banking Management Bank Functions Leader in sustainable Building sustainable finance Established an industry- Focused on meeting the Committed to maximizing investing (SI), with a global offerings for all cl
Slide 14: Continued growth in sustainable investing assets
Continued growth in sustainable investing assets Invested assets 2020 2016-2020 GWM+AM+P&C YoY CAGR +9% +2% Core SI +62% +45% (13%) (7%) +153% +9% +44% +47% Core SI: 793bn +38% +69% Core SI: 18.9% Core SI: Core SI: 489bn 182bn 313bn 13.5% 5.6% 10.1% +175% +78% Numbers in USDbn unless otherwise indic
Slide 15: Actively contributing to a net zero society
Actively contributing to a net zero society – Decarbonizing across the firm Financing Investing Operations › Founding signatory of the Net Zero Banking › Founding signatory of the Net Zero Asset › Targeting net zero scope 1 & 2 emissions by 2025 Alliance (NZBA) Managers initiative: › RE100 goal met
Slide 16: Climate risk heatmap
Climate risk heatmap Cross-sectoral credit risk exposure to climate sensitivity across the Investment Bank and Personal & Corporate Banking1 Numbers in USDm and as of 31 December 2020 unless otherwise indicated; refer to the Sustainability Report 2020 for further information. 1 Banking products acro
Slide 17: Our standards – overview
Our standards – overview (environmental and social risk policy framework) Controversial activities Areas of concern Where UBS will not knowingly do business if it is associated Where UBS will only do business under stringent guidelines: with severe environmental or social damage to / or through the
Slide 18: External awards and recognition
External awards and recognition Industry leader Index member of DJSI World and DJSI Europe A+ score in the Strategy Market leading position in Index member Corporate responsibility and Governance module 2020 GRESB assessments prime status Ranked first globally by our peers for ESG and Impact Investi
Slide 19: UBS Green Funding Framework
Section 2 UBS Green Funding Framework
Slide 20: Green Funding Framework meets core components of Green Bond Principles
UBS’s Green Funding Framework meets core components of Green Bond Principles I Use of Proceeds II Project Evaluation and Selection › UBS will finance and / or refinance Group-wide Eligible Assets, in whole › The asset-owning UBS business unit is responsible for maintaining the or in part, that targe
Slide 21: Use of Green bond proceeds: Green buildings
Use of Green bond proceeds: Green buildings Eligible criteria Eligible Green bond portfolio › UBS will allocate an amount equal to the net proceeds of Green UBS portfolio of Minergie-certified loans in Switzerland bonds to finance and / or refinance new and existing Green buildings › Minergie is a S
Slide 22: Robust asset evaluation process and monitoring of allocation of proceeds
Robust asset evaluation process and monitoring of allocation of proceeds Process for II Project Evaluation and Selection III Management of Proceeds Environmental experts within UBS's Group Risk Control Group Treasury will book the proceeds from Green bonds into a will assess and Group ALCO approve t
Slide 23: Annual publication of Green Funding Investor Report
Annual publication of Green Funding Investor Report Reporting on allocation of proceeds UBS portfolio of Minergie-certified1 loans in Switzerland › Total amount of proceeds allocated to Eligible Assets Eligible Asset portfolio: CHF 2.6bn CO2 emissions saved (tCO2): 90,673 › Share or amount of new fi
Slide 24: External review by Sustainalytics and Climate Bond Initiative
External review by Sustainalytics and Climate Bond Initiative (CBI) Second Party Opinion (pre-issuance) External verification (post-issuance) An appropriate independent assurance provider will annually Sustainalytics has evaluated UBS's Green Funding Framework, assure that UBS's process and allocati
Slide 25: Key financial highlights – 1Q21 update
Section 3 Key financial highlights – 1Q21 update
Slide 26: Delivering for our clients and driving growth
Delivering for our clients and driving growth… AM P&C GWM GWM GWM IB invested assets loans1 loans transaction-based fee-generating assets Global Banking income income 26bn 7.6% 11bn +6% 36bn +48% net new money, net new business net new loans, transaction-based net new fee- Global Banking 1Q21 volume
Slide 27: Building on our strengths to help clients achieve their objectives
…while building on our strengths to help our clients achieve their objectives Invested assets bn Collaborating for our clients 8bn Net new money from SMA1 initiative in the US 1Q21, AM Sustainability integrated into our client offering 5bn Net sales of 100% SI multi-asset mandates 1Q21, GWM 8bn Net
Slide 28: 1Q21 results overview
1Q21 results overview Return on CET1 capital 18.2% Target: 12-15% Return on tangible equity 14.0% Cost/income ratio 73.8% Target: 75-78% Group Net profit attributable to shareholders USD 1.8bn CET1 capital ratio 14.0% Guidance: ~13% CET1 leverage ratio 3.89% Guidance: >3.7% Tangible book value per s
Slide 29: 1Q21 net profit USD 1.8bn; 18.2% RoCET1
1Q21 net profit USD 1.8bn; 18.2% RoCET1 Profit before tax m 1Q21 1,824m 0.49 net profit diluted EPS +14% +15% 18.2% 1.1bn return on USD volume of shares CET1 capital repurchased YTD 31.3.21 14.0% 3.89% CET1 capital ratio CET1 leverage ratio Cost/income ratio1 72.3% +1.6ppts 73.8% Numbers in USD unle
Slide 30: Capital and leverage ratios
Capital and leverage ratios 29
Slide 31: 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