Ubs Group Ag · SIX:UBSG
Ubs — Investor Day (May 2005)
28 slides from Ubs's investor day presentation, May 13, 2005
Slide 1: Investor Day 2005 Investment Bank
Investor Day 2005 Investment Bank New York, 13th May 2005 John P. Costas, Chairman and CEO You & Us
Slide 2: Investment Bank’s Position in 2000
Investment Bank’s Position in 2000
Slide 3: UBS Investment Bank’s position in 2000
UBS Investment Bank’s position in 2000 A growing franchise among corporate and institutional clients ♦ Third largest secondary equities UBS-IB Revenue (2000) firm in the world Non-core ♦ Top 9 Investment Banking Fixed income, Rates and Currencies Investment Banking business globally, 3.8% market sha
Slide 4: Key Developments and Accomplishments (2000-2004)
Key Developments and Accomplishments (2000-2004)
Slide 5: The PaineWebber acquisition
The PaineWebber acquisition Success based upon a powerful strategic fit and a shared business philosophy ♦ Enhanced service of institutional and private clients — Powerful US equity distribution franchise — Leading global investment product platform — Significant US institutional equities and fixed
Slide 6: Commitment to Equities
Commitment to Equities Winning in a challenging environment through strategic investment in people and technology to close remaining gaps US - II ranking improvement US - Broker review average ranking improvement1 2000 2001 2002 2003 2004 2001 2002 2003 2004 3rd 5th 4.1 8th 8th 6.6 9th Rank Rank 10.
Slide 7: Filling in the remaining gaps in Equities
Filling in the remaining gaps in Equities UBS enhanced its Prime Brokerage and US equities capabilities with strategic acquisitions Schwab Capital Markets - ABN AMRO Prime Brokerage Group development of OTC market share 60 ♦ Added the #1 ranked Prime 10.7% Brokerage for funds 50 <$100MM 40 ♦ Increas
Slide 8: Capturing the US FIRC market
Capturing the US FIRC market Dramatic increase in results from broad business expansion … 2000 2004 Business lines added or expanded1 250% increase between Principal Energy 2000-2004 Finance Trading Leveraged Finance Mortgage- Whole Backed Loans Securities Credit Derivatives Commercial Liability Rea
Slide 9: Transformation in FX globally
Transformation in FX globally From market laggard to dominant player in 3 years … FX market share and average direct cost per trade 14% 12.4% 12% 11.5% UBS 11.0% Deutsche Bank 10% 8% Citigroup 6% 5.0% 4% JP Morgan Goldman Sachs 2% 3.6% 0% 2000 2001 2002 2003 2004 UBS average direct cost $/trade, UBS
Slide 10: Strategic hiring in IBD
Strategic hiring in IBD Aggressive strategic hiring across regions, sectors and products has expanded our footprint and capabilities Americas EMEA APAC Energy Financial Sponsors Asia (ex Japan) Equity Capital Markets France China Financial Institutions Germany Japan Financial Sponsors Italy ECMG Ind
Slide 11: Building a global bulge bracket investment banking team
Building a global bulge bracket investment banking team This continued investment in our business has led to the achievement of all objectives identified in 1999 Our starting point Objectives set in 1999 Achieved by 2004 ♦ Relatively weak ♦ Global bulge bracket overall position in status ✔ US/APAC ♦
Slide 12: Developing a significant footprint in APAC
Developing a significant footprint in APAC Substantial expansion of local market business to fully capitalize on growth in APAC UBS-IB APAC Revenue ♦ No.1 for Equities with strength in 140 structured products (consistently, and including Japan) 120 ♦ Consistently top 3 for IBD across (Index rebased
Slide 13: Global bulge bracket bank
Global bulge bracket bank We have a much stronger, and better positioned IB today than ever before 2000 2004 IB IB FIRC IB FIRC Equities IB Equities FIRC Equities IB FIRC Equities IB IB FIRC FIRC Equities Equities Source: UBS IB disclosed financials, 2000 (full year), 2004 (full year) Note: Bubble s
Slide 14: Investment Bank’s Position Today
Investment Bank’s Position Today
Slide 15: UBS Investment Bank’s position today
UBS Investment Bank’s position today UBS is one of the world’s leading firms in the investment banking and securities business ♦ World’s largest equity trading UBS-IB Revenue (2004) house Non-core Fixed income, Rates Investment ♦ Top 5 Investment Banking and Currencies Banking business globally, 5.4
Slide 16: Strong Competitive Performance
Strong Competitive Performance The UBS IB portfolio is one of the most balanced of our peers Last 12 months revenue split1 USD bn 18 Equities 16 Fixed Income Investment Banking 14 12 10 8 6 4 2 0 GS Citi IB DB UBS IB MS JPM MER LEH CSFB BSC Source: Quarterly reports, UBS IB Analysis, Management acco
Slide 17: Market share development
Market share development Strong momentum in market share across all businesses … FIRC – UBS IB vs. the market IBD – Market share and ranking USD bn USD bn % 120 7 7 6 6 #5 #5 100 #4 #3 #8 5 5 80 #9 #8 4 4 60 3 3 #10 40 2 2 20 1 1 0 0 0 2000 2001 2002 2003 2004 Global EMEA Americas APAC Total market
Slide 18: Market share development
Market share development …. fully leveraging our scale advantage in commoditizing businesses ♦ Investment in technology to increase efficiencies — Direct Market Access ♦ Liquidity pool – streamlining cash equities IT and operations e.g. trading confirmations Global secondary equity commission pool a
Slide 19: Best-in-class resource management
Best-in-class resource management UBS Investment Bank has one of the most consistent cost / income ratios amongst its peers Cost/income ratio 180% ♦ Dynamic cost and headcount forecasting 160% ♦ Management focus on costs 140% ♦ Systematic monitoring 120% 100% 80% 60% 40% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q
Slide 20: Goals to 2010
Goals to 2010
Slide 21: Our key goals to 2010
Our key goals to 2010 We want to be the world’s most profitable investment bank Delivering success via organic growth Focusing on key geographic regions Delivering world class resource management Establishing the IB as a talent creator Attaining operational superiority 20
Slide 22: Equities—strategic initiatives
Equities—strategic initiatives UBS Equities aims to be the top provider of total customer solutions to a global community of investors and issuers Leverage cross Narrow the gap business opportunities - US Equities - FIRC - Prime Brokerage - Wealth Management Prime - Middle Markets - IBD Services Pen
Slide 23: IBD—strategic initiatives
IBD—strategic initiatives We are building a relationship-driven and profitable investment bank with a sustainable top 3 ranking in the global fee pool Internal processes – Strengthen accountability – Center around client Personnel Americas (Large cap Coverage footprint – Become the No. 1 clients) –
Slide 24: FIRC—strategic initiatives
FIRC—strategic initiatives We aim to achieve a dominant market position in our client- oriented businesses and a world class structured products capability Infrastructure investment Time-to-market - increased volumes - dynamic infrastructure - increased complexity Structured - tactical and strategic
Slide 25: Potential Challenges
Potential Challenges
Slide 26: Capturing the full benefit of integrated business model
Capturing the full benefit of integrated business model We will continue to deliver our full capabilities in an integrated manner across regions and business groups ♦ Capture substantial value from building stronger networks and Investment Wealth creating logistics efficiencies Bank Management Benef
Slide 27: Positioned to meet external challenges
Positioned to meet external challenges Competitive environment UBS Strategy ♦ Equity margin compression ♦ Leverage our scale and process efficiencies ♦ Credit capacity . ♦ Align use of credit capacity to target sustainable growth Geographic diversity UBS Strategy for growth ♦ Shifting growth by geog
Slide 28: Investor Day 2005 Investment Bank
Investor Day 2005 Investment Bank New York, 13th May 2005 John P. Costas, Chairman and CEO You & Us