Investor Day 2005Wealth Management USA

New York, 13th May 2005Mark Sutton, Chairman & CEO

You & Us

1

Business Overview

2

PaineWebber to UBS

1999 (PaineWebber) Today (WM-USA) Benefits

US-centric broker firmGlobal products andservices capabilities

Attracting globalinvestors & cache as WMleader

Product limitations incertain areas

Broader range of wealthmanagement productsand services

Tangible business growthin HNW & UHNW sectors

Limited balance sheetand lending capabilities(credit rating: BBB+)

Credit rating: S & P AA+Moody’s Aa2, Fitch AA+

Lower cost of capital,improved credibility withclients

Growing cost base incertain areas (e.g.research, regulations,etc.)

Steadily decreasing cost /income ratio

Integrated businessmodel benefits

Sub-scale investmentbank and assetmanagement

Access to globalinvestment bank and assetmanager with rapidlygrowing US presence

Leveraging specialties:structured products,global asset allocation

3

Wealth Management USA vs “Old PaineWebber”PaineWebberJanuary 2000

PrivateClientGroup

CapitalMarkets

Non-USPrivateClients

MitchellHutchins

PrivateClients

Fixed Income:♦ Mortgage-

Backed♦ Asset-Backed

& CommercialReal Estate

EquitiesResearch, Sales& Trading

InvestmentBanking

PrimeBrokerage

InvestmentBank

Global AM WealthManagement

WealthManagementUSA - Today

In 1999, percent ofPaineWebber’spre-tax profits:♦ appr. 52% of private

client businesses and♦ appr. 48% from

institutional businesses

June 2003: Correspondent Services Corp. divested

4

New products and solutions

♦ Enhanced products:— Separately managed accounts

— Multi-asset portfolio management

♦ Portfolio advisory— UBS Global Asset Management asset allocation models

— Global investment expertise and research

♦ Lending capabilities through UBS Bank USA

♦ Structured products

♦ Increased syndicate offerings

♦ Broader municipal capabilities and products

♦ Alternative investments

Synergies between UBS’ core businesses provide newsolutions to meet client needs:

5

States 1 – 5 offices

States 6 – 10 offices

States 11+ offices

WA

MT

ORID

WY

NV

CA

UT

AZ NM

TX

ND

SD

NE

KS

OK

CO

MN

IA

MO

WI

ILIN

LA

AR

KY

TN

MSAL GA

MI

OH

PA

FL

SC

NC

NY

WV

MEVT

NH

MA

RI

CT

NJ

DE

MD

Wealth Management USA — profile

In addition:- Puerto Rico- Hawaii- Alaska

Key Figures

Western Central Eastern

Client relationships ~2 million

Employees1 17,351

Financial advisors1 7,403

Invested assets (USD)1 557bn

Revenues (USD)2 4.3bnexcl. acquisition costs

1 As of 1Q052 Rolling 12 months at 1Q05

6

Integrated business model

Wealth Management USA

Investment Bank Global Asset Management

Example:

♦ Order flow /global execution

♦ Corporate financeleads

♦ UBS Bank USAportfolio mgmt.advice

♦ Management fees

♦ Structuredproducts

♦ Syndicate

♦ Global research

♦ Executive accounts

♦ Mutual fundsdistribution

♦ MAPS/Access

♦ Hedge funds

7

Key Developments / Accomplishments

8

Highlights

UBS Bank USA launched in 2003, deposits USD 14.9bn2

Invested assets USD 561bn2, up 22% since 2001

2004 operating profit1 highest since acquisition

Financial advisor productivity at 115% of average vs. 102% in 20013

2004 market share 15.6% vs. 13.8% in 20013

2004 recurring income 47% of total revenues vs. 41% in 2001

1 Based on the USD result excluding acquisition costs2 As of Dec-043 Based on compensable production among full service firms according to a leading industry survey (includes UBS, Smith Barney, Merrill Lynch, Morgan

Stanley, Wachovia, AGE Edwards)

9

Momentum and growth…

Sources: company reports and a leading industry survey

+1.8pp

Market share1 Productivity as % of industryaverage1

(measured in terms of compensable revenues)

+13.2pp

13.8

14.915.2

15.6

10

12

14

16

2001 2002 2003 2004

%

102

111

115 115

95

100

105

110

115

120

2001 2002 2003 2004

%

1 Based on compensable products among full service firms

10

P&L key performance indicators1

0

1,000

2,000

3,000

4,000

5,0004,048 3,856 3,933

4,266

2001 2002 2003 2004

Operating income(excl. acquisition costs)

Performance(before tax and acquisition costs)

Cost / income ratio

89.9%

2001

89.3%

2002

88.7%

2003

86.9%

2004

USD m

410 410 443

559

0

100

200

300

400

500

600

700

2001 2002 2003 2004

USD m+8.5% +26.2%

1 Numbers prior to 2003 have not been restatedAverage rate (CHF / USD): 2001: 1.69 2002: 1.54 2003: 1.34 2004: 1.24Spot rate (CHF / USD): 2001: 1.67 2002: 1.38 2003: 1.24 2004: 1.14

11

Invested assets / recurring income1

Invested assets Recurring income

460

423

511

561

300

350

400

450

500

550

600

2001 2002 2003 2004

1,000

1,200

1,400

1,600

1,800

2,000

2,200

1,646 1,6181679

2,006

2001 2002 2003 2004

USD mUSD bn+19.5%+9.8%

1 Numbers prior to 2003 have not been restatedAverage rate (CHF / USD): 2001: 1.69 2002: 1.54 2003: 1.34 2004: 1.24Spot rate (CHF / USD): 2001: 1.67 2002: 1.38 2003: 1.24 2004: 1.14

12

UBS Bank USA1

One of the top 50 banks in the US…2

USD 17.6bnAssets

Loans USD 7.2bn

Deposits USD 14.9bn

1 Figures as of Dec-042 Source: American Banker April 2005 (rating based on deposits as of Dec-04)

13

Opportunities and Challenges

14

0

50

100

150

200

250

300

350

Below 45 45 to 64 years 65 and older

Increasefrom 1990

1995 2000 20051990

188

81

40

2010

309

+29%

+76%

+11%

US Population (in millions)

Opportunities

Large and growing market Capitalizing on demographic trends

Annual projected rollovers into IRAs

Long term outlook for the business is strong and our strategyexploits powerful market trends

36,759

Our clients need advice

Source: Advice-Seeking Behavior of U.S. HNW Households (1997 vs.2003) VIP Forum

Source: Federal Reserve Bank, ICI, Source: US Census

Source: Financial Research Corporation, IRA Rollover Trends, 2003

0

10,000

20,000

30,000

40,000

1980 1985 1990 1995 2000 2001 2002 2003 2004

US households financial assets (USDbn)

100

200

300

400

500

2004 2006 2008

409

2010

USD bn

Fully Dependent Opinion-Seeking Self-Directed

%

0

20

40

60

80

100

1997 2000

38%

53%

9%

2003

15

Challenge to deliver the wealth management model

Traditional Wealth Management Model

Trust PrivateBank

BrokerageInsurance

Client

Holistic Wealth Management Model

♦ Investment management♦ Financial planning♦ Cash flow optimization♦ Retirement planning♦ Liquidity / restricted stock♦ Risk / liability management♦ Insurance

“Proponents of [a holistic wealth management] model expect that taking amore comprehensive approach will allow them to boost revenue by

capturing a greater share of their clients’ financial holdings”1

No competitor has yet executed in scale

♦ Personal and businesslending

♦ Trust and estates♦ Wealth transfers♦ Philanthropy / charitable

giving♦ Business succession

planning

1 VIP Forum (9/04 Report)Source: VIP Forum research

16

Wealth Management USA

♦ Global platform of wealth management tools, servicesand solutions

♦ Sharing “best practices”, client successes andpersonnel

Global presenceand capabilities

Strong brand♦ Increasing brand recognition: Ranked #452

♦ “You & Us” initiative♦ Building our brand in our communities

Financialstrength

♦ Standard & Poor’s AA+, Moody’s Aa2 and Fitch AA+1

♦ Credibility

Excellentproducts &

services

♦ Holistic consultative wealth management approach♦ Integrated business model♦ Ability to offer customized solutions

How we differentiate ourselves…

1 Long-term rating2 Business Week, September 6, 2004

17

Challenge to further improve profitabilityCompetitors with lower cost / income ratio enjoy the benefitsof greater scale

Key drivers to improve profitability

Increase scale♦ Drive FA growth♦ Increase asset base♦ Acquisition

Develop highermargin products

and services

Foster furtherintegration

18

2005 and beyond

Strategic responsesTrends

Increasinglysophisticatedclient needs

♦ Deliver customized products andservices for each client segment

♦ Leveraging UBS platform

♦ Foster holistic advisory process todeliver client experience

Blur offinancialservices

♦ Focus on introducing higher margin“banking type” products andservices

♦ Differentiate and demonstrate valueadded services

Pricingpressure

♦ Deliver robust Wealth Managementplatform to drive financial advisorsuccess and growth

Competitionfor talent

Initiatives

Client Accounts /Card Program

MunicipalInitiatives

Small Business

Estate Planning

RetirementInitiative

Private WealthManagement

Continued organic growth on existing business supported bynew initiatives

19

Products & services - Growth opportunitiesSix major initiatives currently in progress to expand ourproduct offerings and to capitalize on market trends

Provide ultra-wealthy individuals with specialized advice andservices♦ Gain market share

Private WealthManagement

Extend the Wealth Management model and provide small businesslending to our business clients♦ Gathering NNM and grow our lending business

Small Business

Estate Planning

RetirementInitiative

Municipal Initiative

Client Account /Card Program

Expand the Municipal Securities franchise♦ Further expand securitization business

Integrate life insurance into a FAs standard business practice♦ Increase number of FAs who use life insurance

Position Wealth Management USA to capture net new money fromtrillion dollar rollover of retirement assets♦ Increase assets in retirement accounts

Relaunch of RMA account in combination with a Dual-Card Program(announcement made on April 18, 2005)♦ Grow card business and increase share of active cards

Investor Day 2005Wealth Management USA

New York, 13th May 2005Mark Sutton, Chairman & CEO

You & Us