6-K

6-K 1 d716620d6k.htm 6-K 6-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

Date: May 6, 2014

Commission File Number: 1-15060

UBS AG

(Registrant’s Name)

Bahnhofstrasse 45, Zurich, Switzerland, and

Aeschenvorstadt 1, Basel, Switzerland

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F x Form 40-F ¨

This Form 6-K consists of the presentation materials of UBS AG relating to the Investor Update held on May 6, 2014, which appear immediately following this page.

LOGO

2014 Investor Update

Executing Our Strategy and Delivering

Sergio P. Ermotti

Group Chief Executive Officer

May 6, 2014

LOGO

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 strategic initiatives on UBS’s business and future development. While these forward-looking statements represent UBS’s judgments and expectations concerning the matters described, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from UBS’s expectations. These factors include, but are not limited to: (i) the degree to which UBS is successful in executing its announced strategic plans, including its efficiency initiatives and its planned further reduction in its Basel III risk-weighted assets (RWA) and leverage ratio denominator; (ii) developments in the markets in which UBS operates or to which it is exposed, including movements in securities prices or liquidity, credit spreads, currency exchange rates and interest rates and the effect of economic conditions and market developments on the financial position or creditworthiness of UBS’s clients and counterparties; (iii) changes in the availability of capital and funding, including any changes in UBS’s credit spreads and ratings, or arising from requirements for bail-in debt or loss-absorbing capital; (iv) changes in or the implementation of financial legislation and regulation in Switzerland, the US, the UK and other financial centers that may impose more stringent capital (including leverage ratio), liquidity and funding requirements, incremental tax requirements, additional levies, limitations on permitted activities, constraints on remuneration or other measures; (v) uncertainty as to when and to what degree the Swiss Financial Market Supervisory Authority (FINMA) will approve reductions to the incremental RWA resulting from the supplemental operational risk-capital analysis mutually agreed to by UBS and FINMA effective 31 December 2013, or will approve a limited reduction of capital requirements due to measures to reduce resolvability risk; (vi) the degree to which UBS is successful in executing the announced creation of a new Swiss banking subsidiary, a holding company for the UBS Group, a US intermediate holding company, changes in the operating model of UBS Limited and other changes which UBS may make in its legal entity structure and operating model, including, the possible consequences of such changes, and the potential need to make other changes to the legal structure or booking model of UBS Group in response to legal and regulatory requirements, including capital requirements, resolvability requirements and the pending Swiss parliamentary proposals and proposals in other countries for mandatory structural reform of banks; (vii) changes in UBS’s competitive position, including whether differences in regulatory capital and other requirements among the major financial centers will adversely affect UBS’s ability to compete in certain lines of business; (viii) the liability to which UBS may be exposed, or possible constraints or sanctions that regulatory authorities might impose on UBS, due to litigation, contractual claims and regulatory investigations; (ix) the effects on UBS’s cross-border banking business of tax or regulatory developments and of possible changes in UBS’s policies and practices relating to this business; (x) UBS’s ability to retain and attract the employees necessary to generate revenues and to manage, support and control its businesses, which may be affected by competitive factors including differences in compensation practices; (xi) changes in accounting or tax standards or policies, and determinations or interpretations affecting the recognition of gain or loss, the valuation of goodwill, the recognition of deferred tax assets and other matters; (xii) limitations on the effectiveness of UBS’s internal processes for risk management, risk control, measurement and modeling, and of financial models generally; (xiii) whether UBS will be successful in keeping pace with competitors in updating its technology, particularly in trading businesses; (xiv) the occurrence of operational failures, such as fraud, unauthorized trading and systems failures; and (xv) the effect that these or other factors or unanticipated events may have on our reputation and the additional consequences that this may have on our business and performance. The sequence in which the factors above are presented is not indicative of their likelihood of occurrence or the potential magnitude of their consequences. Our business and financial performance could be affected by other factors identified in our past and future filings and reports, including those filed with the SEC. More detailed information about those factors is set forth in documents furnished by UBS and filings made by UBS with the SEC, including UBS’s Annual Report on Form 20-F for the year ended 31 December 2013. UBS is not under any obligation to (and expressly disclaims any obligation to) update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise.

Disclaimer: This presentation and the information contained herein are provided solely for information purposes, and are not to be construed as a solicitation of an offer to buy or sell any securities or other financial instruments in Switzerland, the United States or any other jurisdiction. No investment decision relating to securities of or relating to UBS AG or its affiliates should be made on the basis of this document. Refer to UBS's first quarter 2014 report and its Annual report on Form 20-F for the year ended 31 December 2013. No representation or warranty is made or implied concerning, and UBS assumes no responsibility for, the accuracy, completeness, reliability or comparability of the information contained herein relating to third parties, which is based solely on publicly available information. UBS undertakes no obligation to update the information contained herein.

CEO 1

LOGO

Executing our strategy to further unlock UBS's potential

What we have delivered Management priorities

Implemented a clear strategy which focuses on the strengths of our franchise

Reduced gross costs by CHF 2.2 billion per year

Repositioned the firm with wealth management at its core

Significantly reduced RWA and LRD in the Non-core and Legacy Portfolio

Built capital strength and reached targeted Basel III fully applied CET1 ratio of 13%

Addressed many issues from the past and enhanced operational risk framework

Remain disciplined on strategy execution while enhancing capabilities and profitability

Further reduce Corporate Center costs and improve front office efficiency

Pursue growth strategy across all segments and regions

Continue to run down the Non-core and Legacy Portfolio efficiently

Sustain our capital strength in an evolving regulatory environment

Continue addressing litigation and regulatory issues

Growing profits in our operating businesses with capital efficiency

Maintain capital strength while addressing legacy issues

Firmly committed to returning capital to shareholders

Refer to slide 14 for details about adjusted numbers, Basel III numbers and FX rates in this presentation

CEO 2

LOGO

Our franchise is unrivaled with compelling growth prospects

Our businesses Our objectives

World’s leader in HNW and Æ Remain leading large-scale wealth manager in the world

Wealth UHNW banking with unrivaled

Æ Gain market share in established markets, and capture wealth management scope and scale creation in APAC and EM businesses

Æ Achieve superior pre-tax profit growth vs. peers

Leading position across retail, Æ Continue providing a full suite of banking products to clients Retail & corporate and institutional Æ Maintain leading position and stable profit contribution

Corporate client segments in Switzerland

Æ Fully factor in the costs of regulation in our pricing

Well diversified and strongly Æ Strengthen investment performance culture

Global Asset positioned in key growth areas Æ Focus product offering and strengthen distribution around Management growth areas

Æ Achieve profit before tax target of CHF 1 billion

Capital-light, client-focused Æ Deliver attractive returns with allocated resources Investment with attractive risk-adjusted Æ Strengthen our position in our targeted businesses

Bank returns

Æ Grow contribution to the rest of UBS's businesses

CEO 3

LOGO

Broadly diversified profit sources

All business divisions were profitable in each region in 2013

Europe, Middle East, and Africa1: CHF 1.5 billion

FY13 PBT1, CHF billion

04 .

0.0 1.1

Americas: CHF 1.7 billion

FY13 PBT1, CHF billion

01 .

0.6

0.9

0.2

Switzerland: CHF 2.7 billion

FY13 PBT1, CHF billion

0.4 0.6 0 02 .2

1.5

Asia Pacific: CHF 1.5 billion

FY13 PBT1, CHF billion

0.5

1.0

0.1

WM WMA R&C Global AM IB Corporate Center/global: (4.2) billion2,3

1 Europe, Middle East, and Africa excl. Switzerland; 2 Numbers are not comparable to the disclosed financial statements of our main local subsidiaries; revenues are allocated in general following a client domicile view, which is supplemented by overlays to capture cross-country sales.; this represents a more complete view of global and local sales for management purposes, as opposed to the split according to the legal entity where the transaction is recorded; 3 Includes Corporate Center and global operating income, expenses, and profit before tax that are not attributed to regions and are managed using a global view (~CHF 30 million)

CEO 4

LOGO

We continue our focus on cost reduction

CHF 2.1 billion net cost reduction target versus FY131

As of 31.12.13, adjusted operating expenses, CHF billion

5.4

1.5

3.9

1.8

2.1

Gross cost Investment Net cost Net cost Residual reduction for growth reduction reduction net cost target achieved reductions as of 4Q135 Operational efficiency plan as announced in 3Q121

CHF 1.4 billion annual net cost savings in Corporate Center by year-end 20152,3

CHF 0.7 billion annual net cost savings as we complete the exit of the Non-core and Legacy Portfolio4

Targeting additional cost efficiency in front office functions

– Lowering cost/income ratio targets for Wealth Management and Wealth Management Americas, narrowing the range for the Investment Bank

Refer to slide 14 for details about adjusted numbers, Basel III numbers and FX rates in this presentation

1 As communicated on 30.10.12, based on 1H11 annualized adjusted operating expenses; 2 CHF 1.0 billion net reduction in Corporate Center – Core Functions 2015 year-end exit rate versus FY13 annual adjusted operating expenses net of FX movements, changes in regulatory demand of temporary nature and changes in charges for provisions for litigation, regulatory and similar matters; 3 CHF 0.4 billion net reduction in Corporate Center – Non-core and Legacy Portfolio 2015 year-end exit rate versus FY13 annual adjusted operating expenses net of changes in charges for provisions for litigation, regulatory and similar matters; 4 CHF 0.7 billion net reduction in Corporate Center – Non-core and Legacy Portfolio annual adjusted operating expenses versus FY13; 5 As communicated on 4.2.14

CEO 5

LOGO

Capital strength is the foundation of our success

Three-pronged approach to capital and balance-sheet management

Basel III CET1 ratio

fully applied

13.2% 13.0%

~9.8% +350 bps

31.12.12 31.3.14 2014 target

Industry-leading CET1 capital ratio is key to supporting long-term success and is a source of competitive advantage

Buffer above 2019 requirement even without loss-absorbing capital

Basel III CET1 ratio post-stress1

fully applied

9.9% ?10%

4.1% +580 bps

31.12.12 31.3.14 2014 target

Capital will be managed to reach and maintain a fully applied CET1 ratio above the regulatory requirement under a stress scenario

Integral part of capital returns philosophy

Swiss SRB leverage ratio

CHF billion

Expected direction

5.0% based on

~3.6% our plans

3.8%

~2.4%

1,206 988

900

LRD2

(18%)

31.12.123 31.3.14 2016 target4

Phase in Fully applied

New requirements were a key factor in shaping UBS's strategy

Effectively functions as a backstop to our capital management approach

Refer to slide 14 for details about adjusted numbers, Basel III numbers and FX rates in this presentation

1 Based on our internal stress testing framework, excludes estimated operational risk capital losses as per page 79 of the 1Q14 quarterly report; 2 Fully applied leverage ratio denominator; 3 Pro forma; 4 Based on the rules applicable today

CEO 6

LOGO

Managing down the Non-core and Legacy Portfolio

Tight risk control and disciplined execution to free up capital and reduce costs

RWA

CHF billion

(42)%

103

23 38%

(59%)

37 62%

31.12.12 31.3.14

Market and credit risk Operational risk

Cumulative RWA reduction and quarterly revenues

RWA in CHF billion and revenues in CHF million

222

49 (27) (33) (127)

(5.4)

(25.7)

(35.3) (47.6)

(51.8)

1Q13 2Q13 3Q13 4Q13 1Q14

Operating income excluding DVA and SNB StabFund option1 Cumulative RWA reduction excluding operational risk

Adjusted operating expenses

CHF million

1Q13 2Q13 3Q13 4Q13 1Q14 983

561 588

364 293 288

215 238 245 191

Adjusted operating expenses

Adjusted operating expenses excluding charges for provisions for litigation, regulatory and similar matters

Refer to slide 14 for details about adjusted numbers, Basel III numbers and FX rates in this presentation

1 SNB StabFund option revenues were CHF 245 million in 1Q13, CHF 122 million in 2Q13, CHF 74 million in 3Q13, CHF (28) million in 4Q13 and CHF (1) million in 1Q14

CEO 7

LOGO

Further adapting to global regulatory changes

Modifying legal structure to enhance resolvability and to improve capital returns potential

Intention to establish a

Group holding company

Measures announced previously

Switzerland

Establish a Swiss banking subsidiary, starting mid-2015

Full scope expected to include Retail & Corporate and Swiss-booked Wealth

Management business

Increased self-sufficiency of UBS Limited

UBS AG to increase capitalization of UBS Limited during 2Q14

Required to establish an intermediate holding company (IHC) by 1 July 2016

Æ Holding company to be formed through share-for-share exchange offer to be launched later in 20141

Æ Expect to qualify for capital rebate on reduced resolvability risk under Swiss Too-Big-To-Fail legislation

Æ Lower capital requirements expected for the Group

Improving capital returns

Anticipated supplementary capital return of at least CHF 0.25 per share from Group holding company after a successful share-for-share exchange…

… in addition to at least 50% net profit attributable to shareholders

1 Subject to various regulatory approvals

CEO 8

LOGO

Retail & Corporate

Stable profits and strong momentum in an attractive market, high degree of integration with our other Swiss-based businesses

Retail: ~2.5 million clients

~1 in 3 households ~1 in 5 mortgages ~1 in 6 CHF saved

~1 in 4 CHF spent on credit cards

Basel

Zurich

Best Bank in Switzerland

2012 & 20131

Geneva

Corporate2: ~130,000 clients

~50% of Swiss-domiciled corporates ~60% of Swiss-domiciled insurers ~85% of Swiss-domiciled banks

~300 branches, market leader and lead innovator in online and mobile banking services

Stable earnings reflecting >70% of recurring income

Bars: Profit before tax (adjusted), CHF million. Line: Net interest margin, %

1.59 1.61 1.59 1.62 1.54 1.57 1.54 1.57

395 395 417 391 390 362 362 347

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13

CHF yield curve

CHF LIBOR market swap rates

A 100bps upward parallel shift in the CHF yield curve would lead to ~CHF 0.3 billion incremental revenues per year3

3.4%

31.3.08

1.3%

31.3.14

1Y 10Y

Refer to slide 14 for details about adjusted numbers, Basel III numbers and FX rates in this presentation

1 Euromoney; 2 Includes institutions; 3 Estimate based on 31.3.14 deposit and loan volumes

CEO 9

LOGO

Investment Bank

Client-focused Investment Bank excelling in targeted segments

Investor Client Services Corporate Client Solutions

Leading Equities franchise

#1 in Cash globally2

#1 in Asia Services in Prime Broking3

#1 Derivatives and #[4] in Equities overall4 Structured Products House5

Focused FRC1 franchise

Top FX and Precious Metals House6,7 #1 tied in FX globally, in Europe, and in the US6 #1 in Precious Metals, #1 Precious Metals Research7

Strong solutions and advisory businesses

Financial Advisor of the Year8

Developed Markets ECM Deal of the Year9 #6 in ECM, #6 in M&A globally by volumes10

1Q13 2Q13 3Q13 4Q13 1Q14

Cost/income ratio and RoAE

adjusted; bars: RoAE; line: cost/income ratio

85%

65%

47%

38%

15% 17% 19% 28%

RWA and funded assets

CHF billion

200

186 179 176 172 162

69 67 59 62 62

RWA Funded assets

Revenue mix

average 1Q12-4Q1311

UBS Peer average

ICS: FRC1 Equities

22% ICS: 23%

Equities FICC

42% 53%

CCS IBD

36% 24%

Balanced business mix with heavier weighting towards equity

Refer to slide 14 for details about adjusted numbers, Basel III numbers and FX rates in this presentation

1 FX, Rates & Credit; 2 Leading private survey (4Q13, issued March 2014); 3 AsiaMoney (2013); 4 Coalition per UBS-Coalition agreed taxonomy (2013, issued April 2014); 5 Derivatives Intelligence (2013); 6 Greenwich Associates (March 2014); 7 Risk & Energy Risk Commodity Rankings (2014); 8 Infrastructure Journal Awards (2013); 9 Euromoney (2013);10 Dealogic (FY13, as of 17.3.14);11 UBS's analysis based on reported figures, where the peers are BofA ML, Barc, Citi, CS, DB, GS, JPM, MS; CS, GS and MS Equities adjusted for estimated contra-revenues (private survey); UBS figures in USD and adjusted for DVA

CEO 10

LOGO

Group targets

Basel III CET1 ratio

fully applied

13.2% 13.0%

~9.8%

31.12.12 31.3.14 Target1

Basel III RWA

fully applied, CHF billion

~258

227

~53 <215

<200 81

31.12.12 31.3.14 31.12.15 31.12.17 target target

Operational risk RWA

Swiss SRB leverage ratio

CHF billion

Expected direction

5.0% based on

~3.6% our plans

3.8%

~2.4%

1,206

988

900

31.12.122 31.3.14 2016 target3

Phase in Fully applied

Cost/income ratio Return on equity

adjusted, annual adjusted, annual

>15% 90% 85%

60-70%

8.3%

4.2%

2012 2013 2015 2012 2013 2015 target target4

Refer to slide 14 for details about adjusted numbers, Basel III numbers and FX rates in this presentation

1 ?10% post-stress in addition to the 13% CET1 ratio target; 2 Pro forma; 3 Based on the rules applicable today; 4 While we continue to target a Group return on equity of greater than 15% in 2015, given elevated operational risk RWA, we may not achieve that until 2016

CEO 11

LOGO

Firmly committed to returning capital to shareholders

Our strategy supports an attractive capital returns program

Progressive capital returns

CHF 0.25 per share dividend proposed for 2013

Dividend per share

CHF

Future dividend policy

After achieving Basel III fully applied CET1 ratio of 13% and CET1 ratio of a 10% minimum post-stress

Illustrative example

Payout ratio

0.25

0.10 0.15

2011 2012 2013 proposed

Payout ratio 9% N/M 30%

CET1 ratio

~6.7% ~9.8% 12.8% fully applied

Targeting a payout 50%1 ratio of at least 50% ? of net profit1

? 50% >13.0%1

Refer to slide 14 for details about adjusted numbers, Basel III numbers and FX rates in this presentation

1 Payout ratio of at least 50% conditional on both fully applied CET1 ratio of minimum 13% and CET1 ratio of minimum 10% post-stress

CEO 12

LOGO

Key messages

Our unique business mix is focused on cash flow generative businesses with attractive risk/reward profiles to deliver high quality earnings

We continue our focus on costs, with targeted cost reductions of CHF 2.1 billion, while also investing in our businesses

We are focused on running down the Non-core and Legacy Portfolio, building capital, adapting to global regulatory change and resolving issues from the past

We will continue to execute our plans to further unlock UBS's potential for our shareholders

CEO 13

LOGO

Important information related to numbers shown in this presentation

Use of adjusted numbers

Adjusted results are non-GAAP financial measures as defined by SEC regulations. Refer to page 12 of the first quarter 2014 report and pages 76-77 of our 2013 annual report for an overview of adjusted numbers.

Basel III RWA, Basel III capital and Basel III liquidity ratios

Basel III numbers are based on the BIS Basel III framework, as applicable for Swiss Systemically relevant banks (SRB). In the presentation are SRB Basel III numbers unless otherwise stated. Our fully applied and phase-in Swiss SRB Basel III and BIS Basel III capital components have the same basis of calculation, except for differences disclosed on page 80 of the 1Q14 financial report.

Basel III risk-weighted assets in the presentation are calculated on the basis of Basel III fully applied unless otherwise stated. Our RWA under BIS Basel III are the same as under Swiss SRB Basel III.

Leverage ratio and leverage ratio denominator in this presentation are calculated on the basis of fully applied Swiss SRB Basel III, unless otherwise stated.

From 1Q13 Basel III requirements apply. All Basel III numbers prior to 1Q13 are on a pro-forma basis. Some of the models applied when calculating pro-forma information required regulatory approval and included estimates (discussed with our primary regulator) of the effect of these new capital charges.

Refer to the “Capital Management” section in the 1Q14 financial report for more information.

Currency translation

Monthly income statement items of foreign operations with a functional currency other than Swiss francs are translated with month-end rates into Swiss francs. Refer to “Note 36 Currency translation rates” in the 2013 Annual Report for more information.

Performance targets

Unless otherwise stated, performance targets exclude, where applicable, items considered non-recurring and certain other items that management believes are not representative of the underlying performance of our businesses, such as own credit gains and losses, restructuring-related charges and gain and losses on sales of businesses and real estate. Additionally, where applicable, performance targets assume constant foreign currency translation rates.

Rounding

Numbers presented throughout this presentation may not add up precisely to the totals provided in the tables and text. Percentages, percent changes and absolute variances are calculated based on rounded figures displayed in the tables and text and may not precisely reflect the percentages, percent changes and absolute variances that would be derived based on figures that are not rounded.

CEO 14

LOGO

2014 Investor Update capital Strength and cost Efficiency Tom Naratil Group Chief Financial Officer Group Chief Operating Officer

May 6, 2014

LOGO

Disclaimer: This presentation and the information contained herein are provided solely for information purposes, and are not to be construed as a solicitation of an offer to buy or sell any securities or other financial instruments in Switzerland, the United States or any other jurisdiction. No investment decision relating to securities of or relating to UBS AG or its affiliates should be made on the basis of this document. Refer to UBS’s first quarter 2014 report and its Annual report on Form 20-F for the year ended 31 December 2013. No representation or warranty is made or implied concerning, and UBS assumes no responsibility for, the accuracy, completeness, reliability or comparability of the information contained herein relating to third parties, which is based solely on publicly available information. UBS undertakes no obligation to update the information contained herein.

CFO/COO 1

LOGO

Key messages

Capital strength is the foundation of our success

– Maintaining our Basel III fully applied CET1 ratio of 13%, committed to 10% post-stress in 2014 Targeting a Swiss SRB leverage ratio denominator of CHF 900 billion by 20161

– We can achieve our growth objectives with limited retention of earnings

We target CHF 2.1 billion cost reduction versus FY132

– CHF 1 4 billion annual net cost savings in Corporate Center by 20153,4,5

CHF 0 7 billion annual net cost savings after 2015 as we complete the exit of the Non core and Legacy Portfolio6 Targeting additional cost efficiency in front office functions; lowering cost/income ratio targets for Wealth Management Wealth Management Americas and narrowing the range for the Investment Bank

Utilization of past net operating losses could increase earnings and excess capital

– Additional tax loss DTA recognition would increase tangible equity at the point of recognition

– Utilization of historical net operating losses against taxable income would lead to additional cash being retained by UBS which would increase the CET1 capital base and our excess capital position

Refer to slide 18 for details eta about adjusted numbers, Basel III numbers and FX rates in this presentation

1 Based on the rules applicable today; 2 CHF 3.9 billion net cost reduction as communicated 30.10.12 (CHF 5.4 billion gross cost reductions net of CHF 1.5 billion investment for growth, based on 1H11 annualized adjusted operating expenses); 3 Measured by 2015 year-end exit rate versus FY13 adjusted operating expenses; 4 Measured net of changes in charges for provisions for litigation, regulatory and similar matters; 5 In Corporate Center – Core Functions, measured net of FX movements and changes in regulatory demand of temporary nature; 6 Reduction in annual adjusted operating expenses versus FY13

CFO/COO 2

LOGO

capital strength is the foundation of our success

Capital and balance sheet management

We have met our 13% Basel III fully applied CET1 ratio target

Swiss SRB Basel III Basel III fully applied capital fully applied capital Large global banks

31.3.14 31.3.14

UBS European12 1,2 US2,3 23

19% ~18.8%

17.5%

~CHF 9 16 8% 16.8%

~4.5% 7 6% billion

4.5%4,5 3.1% ~CHF 2.5

2.2% 13.2%

~1.25% billion7 1.2%

0.4% 6% 4.5% 4.5

(employee 1.4% 2.3%

4 3% 1.4%

3% 3 0% held) 2 8% 1 0% 2.1%

3.6% % 2.7%

0 7%

1.3%

1.0%

0.5% % 0.1%

~CHF 26

13.0% billion7 13.2%

11.6%

10.9% 10.5%

10% 10.0% 6 10.0% 9.7%

9.5% 9.3% 9.6% 9.6%

Swiss 2019 UBS UBS A B C D E F G H I TBTF regulatory indicative ubs 31.3.14

8 Low-trigger loss absorbing capital Tier 2 2c capital pital proposal requirement capital Tier 1 capital High-trigger loss absorbing capital

UBS estimate structure

Common equity tier 1 capital Common equity tier 1 capital

Refer to slide 18 for details about adjusted numbers, Basel III numbers and FX rates in this presentation; 1 Basel III Common Equity Tier 1 capital ratios (fully applied) as per CRD IV; 2 Based on latest available data from company reports; 3 Basel III Common Equity Tier 1 capital ratios fully applied under advanced approach; 4 Our requirement for the progressive buffer capital is dynamic and depends on our Group total LRD, as well as our market share in the systemically relevant loans and deposits business in Switzerland. We expect our 2019 requirement to be ~4.5%, due to our planned balance sheet reduction and the resulting reduction of our LRD; 5 Estimate stima does not include any potential capital rebate from m improved Group roup resolvability resolvability resulting from actions ctions such as the successful creation of a Group holding company; 6 Capital requirements for 2019 do not include a countercyclical buffer requirement, as potential future developments 3 CFO/COO cannot be accurately predicted and may vary from period to period; 7 Based on RWA target of CHF 200 billion; 8 Based on estimated market share and total exposure as of 31.12.09

DFO/COO 3

LOGO

Committed to a 10% Basel III fully applied CET1 ratio post-stress

Capital and balance sheet management

We expect to achieve our post stress target of 10% in 2014

Basel III fully applied CET1 ratio – Stress testing

Baseline development Scenario development

13 2%

Performance Distributions to before tax shareholders

Business Capital items, risk (net) tax expense and 99% >=10.0% pension plans

Risk scenario losses1

Dividend accrual reversal

Capital items Tax and pension expense plans

Basel III Basel III Basel III Basel III CET1 ratio CET1 ratio CET1 ratio CET1 ratio

31.3.14 31.3.15 post stress post stress

31 3 15 target

Combined stress test scenarios encompass macro-economic and geopolitical stress events over a one-year horizon

Effects measured across all material risk types and all businesses

– Accounting for projected development of capital deduction items, e.g., pension fund assets

Refer to slide 18 for details about adjusted numbers, Basel III numbers and FX rates in this presentation; 1 Comprising credit, redit market ark , country ountry, operational, investment, funding & liquidity and structural FX risk losses (excludes estimated operational risk capital losses as per page 78 of the 1Q14 quarterly report)

CFO/COO 4

LOGO

Capital and balance sheet management

Targeting a Swiss SRB LRD1 of CHF 900 billion by 2016

Swiss SRB leverage ratio and LRD

CHF billion

Phase in ratio Expected direction

5.0%

~3.6% based on our plans

Fully applied 3.8% ratio ~2.4%

1,206

988

900

LRD

31.12.123 31.3.14 2016 target4

Swiss SRB LRD and RWA

31.3.14 for selected businesses (illustrative example)2

An increased leverage ratio impacts our Swiss and nd deposit-taking businesses

RWA

Low LRD / high RWA ratio

RWA = main constraint

Legacy Portfolio

[to be exited] Non-core [to be exited]

Mortgages and corporate loans IB ICS in Switzerland IB ICS Equities (R&C) WMA FRC

WM Corporate lending (IB CCS)

Global AM

High LRD / low RWA ratio Liquid

LRD = main constraint asset buffer56

LRD

1 Fully applied leverage ratio denominator; 2 The placement of the bubbles is indicative only; 3Pro-forma; 4 Based on the rules applicable today;

5 Dominated by LCR requirements for WM, WMA and R&C client deposits; 6 Assets eligible in Basel III LCR framework

CFO/COO 5

LOGO

We can achie e o r gro th objecti es ith limited retention achieve our growth objectives with of earnings

Rates and Credit business utilizes only 5% of Group LRD

Swiss SRB leverage ratio denominator (LRD)

31314

Non-core and Legacy Portfolio

Investment Bank – CCS

Investment Bank – ICS Rates and Credit

Investment Bank – ICS FX

Investment Bank – ICS Equities

Global Asset Management

Retail & Corporate

Wealth Management Americas

Wealth Management

Corporate Center – Core Functions

Liquid asset buffer1

Corporate Center – Core Functions

Other2

Being exited

Capital allocated to the Investment Bank is limited

Source of ~20%of pre-tax profits3 over the long-term

CHF 70 billion RWA and CHF 200 billion funded assets limits

Limited proportion of earnings required to fund growth in our wealth management and Swiss businesses

Source of ~80% of pre-tax profits3 over the long-term

Increase in LRD requirements would mostly impact our mortgage and corporate lending businesses in Switzerland and lending in our wealth management businesses globally

1 Driven by LCR requirements for WM, WMA and R&C client deposits; 2 Includes e.g. financial investments available-for-sale, cash collateral on securities borrowed, deferred tax assets as well as property and equipment; 3 Percentage of business divisions total pre-tax profit

CFO/COO 6

LOGO

We have strengthened o r cost management and ill further reduce costs

CHF 2 1 billion net cost reduction target

As of 31 12 13 adjusted operating expenses CHF billion

1 5

3.9

1.8

2.1

Gross cost Investment Net cost Net cost Residual reduction for growth reduction reduction net cost target achieved reductions3 as of 4Q132

Announced in 3Q121

Strengthened cost management, increasing cost accountability and discipline

Corporate center

³/₄ Net cost ost reduction eduction target to directly drive maximum cost efficiency

Increase effectiveness and efficiency in delivering services to business divisions

Business divisions

³/₄ Cost/income target ranges to allow investments for growth while maximizing cost efficiency

Manage direct costs

Manage demand of services delivered by the Corporate Center

Improve front office efficiency

Refer to slide 18 for details about adjusted numbers, Basel III numbers and FX rates in this presentation

1 As communicated on 30.10.12, based on 1H11 annualized adjusted operating expenses; 2 As communicated on 4.2.14; 3 Refer to slide 11 for details on definition and timing of targeted cost reductions

CFO/COO 7

LOGO

Corporate Center Reducing Center—Core Functions costs

Promote cost accountability • Full end-to-end approach

Incentivize long term efficiency • Clean slate budgeting and planning

~2/3 of expected cost savings

Group Technology Examples

Application reduction and elimination of outdated infrastructure

Infrastructure standardization and harmonization

Process automation

Significant increase in transformational investment

Continued optimization of our footprint

Group Operations

Reorganization and alignment to newly implemented service units

Drive end-to-end process streamlining and simplification

Continued optimization of our footprint

Group Corporate Services

Vendor consolidation and rationalization

Procurement outsourcing

Consolidation and reduction of global real estate footprint

Expansion of our Nashville and Krakow hubs

~1/3 of expected cost savings

Other functions Examples

Leaner Finance end-to-end operating model that leverages new technologies and service delivery utilities from cost efficient locations

Implement new business intelligence data sets that enhance user self service functionality across the Finance financial planning and analysis suite, resulting in better financial information availability that requires fewer resources

Consolidation of Risk transaction decision functions into a center of excellence, e.g., Traded Market Risks, Corporates/Structured and Leveraged Finance etc.

Identify and implement cross functional synergies in the control functions including e g combining disparate reporting units, data validation teams and valuation model quants

Optimize law firm management framework, outsourcing of legal work for specialist areas

Human Resources IT platform consolidation, creation of HR Shared Service Utility and low-cost offshore service hubs as well as transformation of training and recruitment operating models

Framework

Function specific measures

Cross-functional measures

CFO/COO 8

LOGO

Clean b dgeting and slate budgeting planning for the Group

We are increasing efficiency – with a "zero" cost base as the new starting point

Map and cost existing activities

Exit non-essential activities

Maximize efficiency of retained activities

Structural cost reduction with "zero" as new budget starting point

Activity map

Activity prioritization

Survival minimum

Strategic minimum

Discretionary

Efficiency levers and cost driver examples

Degree of Organization centralization

Contractor Labor ratio

Outsourcing Process opportunities

Automation in Systems reporting

Ad-hoc requests Demand versus planning

Clean slate budget for operating expenses

CFO/COO 9

LOGO

Tracking our cost reduction progress

FY13 adjusted operating expenses

CHF billion

By By

Provisions type source for litigation, regulatory Non-core & and similar 1.7 Legacy portfolio 2.4 matters 0.4 (Corporate Center)

Regulatory demand of temporary nature

Core Functions

(CHF 0.6 billion 7.9

(Corporate Center) estimated for FY14)

Operating expenses 21 6

(underlying)

Business

13.4

divisions

CHF 23 7 billion CHF 23 7 billion

CHF 2 1 billion cost reduction target

versus FY13

CHF 0 4 billion reduction by year end 20151,2

CHF 0.7 billion additional reductions after 20153

CHF 1.0 billion reduction by year-end 20151245

Before allocations to business divisions

Additional direct cost efficiency

We continue to expect restructuring charges of up to CHF 0 9 billion in FY14 and CHF 0 8 billion in FY156

Refer to slide 18 for details about adjusted numbers, Basel III numbers and FX rates in this presentation

1 Measured by 2015 year end exit rate versus FY13 adjusted operating expenses; 2 Measured net of changes in charges for provisions for litigation regulatory and similar matters; 3 Reduction in annual adjusted operating expenses versus FY13; 4 Measured net of FX movements and changes in regulatory demand of temporary nature; 5 Estimated expected reduction in business division allocations of CHF 0.2-0.3 billion for WM, CHF 0.1-0.2 billion for WMA, CHF 0.3-0.4 billion for IB, CHF 0.1-0.2 billion for R&C and CHF ~0.1 billion for Global AM (based on current allocation keys); 6 As communicated on 30.10.12

CFO/COO 10

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Tracking our cost reduction progress

Corporate Center cost reduction

Core Functions

Before allocations to business divisions

Changes in Changes in provisions regulatory for litigation, Cost demand of regulatory

7.9 reduction 2,3,4 temporary

FX and similar

0.21 nature

1.0 movements matters

7.7

FY13 FY15 adjusted adjusted operating operating expenses expenses5

Non-core and Legacy Portfolio

Changes in Cost provisions

2.4 reduction2,3 for litigation, regulatory

0.4

cost education 5

Cost and similar

1.3 matters reduction6

0.7

1.1

FY13 FY15 Future period adjusted adjusted adjusted operating operating operating expenses expenses5 expenses

Illustrative example, CHF billion

Revised annual cost/income target ranges

Adjusted Current Targets cost/income ratio targets7 from 2015

FY12 FY13

Wealth 71% 68% 60-70% 55-65%

Management

90% 86% 80-90% 75-85%

Wealth Management Americas

Retail &

59% 60% 50-60% 50-60%

Corporate

Global Asset 71% 69% 60-70% 60-70%

Management

94%

65-85% 70-80%

Investment 71% Bank

90% 85%

Group 60-70% 60-70%

1 Provisions for litigation, regulatory and similar matters; 2 Measured by 2015 year-end exit rate versus FY13 adjusted operating expenses; 3 Measured net of changes in charges for provisions for litigation, regulatory and similar matters; 4 Measured net of FX movements and changes in regulatory demand of temporary nature; 5 2015 year-end exit rate adjusted operating expenses; 6 Reduction in annual adjusted operating expenses versus FY13;

7 Remain unchanged for 2014

CFO/COO 11

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Tax losses and deferred tax assets

We have the potential to recognize significant additional tax loss DTAs

Tax loss DTAs are recognized on the basis of a future profit recognition period (generally 5 years) multiplied by the applicable statutory tax rate1 Changes in profit forecasts, other assumptions and business activities lead to changes in recognized tax loss DTA2

5 years

Year: 1 2 3 4 5 6 7 8 …

Potential CHF 28.6 billion tax loss DTA available to offset against future taxable income3

CHF 17.2 billion unrecognized tax loss DTA in the US with a remaining life of ~16 years

Potential in other regions is more limited; remaining average life of unrecognized Swiss DTA is ~2 years

Tax loss DTAs

CHF billion

Unrecognized Recognized

22.9

17.2

2.0

5.7

3.7 2.9 0.1

1.9 0.8 Total4 US CH UK5 RoW

The recognition of additional tax loss DTA would lead to increased earnings and tangible equity at the time of recognition

Utilization of historical net operating losses against taxable income would lead to additional cash being retained by UBS which would lead to an increase in retained earnings which would increase CET1 capital or could be used to return additional capital to shareholders

1 As disclosed in our 2013 Annual Report (p 69) UBS may depending on our financial performance increase the future profit recognition period which could materially increase the amount of recognized DTAs; 2 We expect that the next DTA revaluation will occur in 2H14 in conjunction with the release of new internal Group profit forecasts; 3 As of 31.3.14; 4 DTA recognized on UBS's balance sheet (CHF 8,370 million) includes tax loss DTA (CHF 5,687 million) and DTA for temporary differences (CHF 2 683 million); 5 Unrecognized tax losses have indefinite life in the UK

CFO/COO 12

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Business division and Corporate Business division Center targets

Ranges for sustainable performance over the cycle

Business divisions

Net new money growth rate 3-5% Wealth Management Gross margin 95-105bps

Adjusted cost/income ratio 55-65% from 2015 (remains 60-70% for 2014)

Net new money growth rate 2-4% Wealth Management Gross margin 75-85bps Americas

Adjusted cost/income ratio 75-85% from 2015 (remains 80-90% for 2014)

Net new business volume growth rate 1-4% (retail business) Retail & Corporate Net interest margin 140-180bps Adjusted cost/income ratio 50-60%

Net new money growth rate 3-5% excluding money market (previously including money market) Global Asset Gross margin 32-38bps Management Adjusted cost/income ratio 60-70% Adjusted annual profit before tax CHF 1 billion in the medium term (new target)

Adjusted annual pre-tax RoAE1 >15%

Adjusted cost/income ratio 70-80% from 2015 (remains 65-85% for 2014) Investment Bank Basel III RWA limit CHF 70 billion Funded assets limit CHF 200 billion

Corporate Center

Core Functions Net cost reduction CHF 1 0 billion by year-end 20152

Basel III RWA fully applied CHF 40 billion by 31 12 15 (previously CHF 55 billion) Non-Core and ~CHF 25 billion by 31 12 17 Legacy Portfolio Net cost reduction CHF 0.4 billion by year-end 20153 additional CHF 0.7 billion4 after 2015

Refer to slide 18 for details about adjusted numbers Basel III numbers and FX rates in this presentation

1 Adjusted annual pre-tax return on attributed equity; 2 Measured by 2015 year-end exit rate versus FY13 adjusted operating expenses net of FX

movements, changes in regulatory demand of temporary nature and changes in charges for provisions for litigation, regulatory and similar matters;

3 Measured easured by 2015 year-end exit xit rate versus ersus FY13 Y1 adjusted djuste operating expenses net of changes in charges for provisions for litigation, regulatory and nd

similar matters; 4 Reduction in annual adjusted operating expenses versus FY13

CFO/COO 13

LOGO

Appendix

LOGO

Revenue sensitivity to external factors

Factors and scenarios

Based on 31 3 14 data

Scenario Factor

(Illustrative)

10% weakening of Swiss Franc

Foreign (against major global lobal exchange currencies)2,3

10% rise in global security prices

(equities and bonds)4

Markets

100 bps increase in interest rates

Interest (parallel increase across rates all currencies)5

Estimated incremental revenues per year1

CHF billion

WM WMA R&C Global AM

~0 5 ~0 7 <0 1 ~0 1

~0.3 ~0.4 <0.1 ~0.1

~0.7 ~0.2 ~0.3 <0.1

1 Scenarios are not entirely additive; 2 USD GBP and EUR; 3 10% weakening of Swiss Franc would also result in incremental costs of approximately CHF 0.8 billion for WM, WMA, R&C and Global AM; 4 Recurring income; 5 Constant deposit and loan volumes

CFO/COO 15

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Regional and business division business division performance1—FY13

CHF billion Corporate Center

EMEA2 Switzerland Americas Asia Pacific 3 Total

and global

WM 3.9 1.5 0.4 1.7 0.1 7.6

WMA 0 0 0 0 6 5 0 0 0 0 6 5

Investment Bank 2 2 1 1 2 5 2 6 0 2 8 6

Operating income Global AM 0.4 0.5 0.7 0.3 0.0 1.9

R&C 0.0 3.8 0.0 0.0 0.0 3.8

Corporate Center 0.0 0.0 0.0 0.0(0.7)(0.7)

Group 6 6 6 8 10 2 4 5(0 4) 27 7

WM 2.9 0.8 0.4 1.2 0.0 5.3

WMA 0.0 0.0 5.7 0.0 0.0 5.7

Investment Bank 1 8 0 7 2 0 1 6 0 3 6 3

Operating expenses Globaloba AMM 0.4 0.3 0.5 0.2 0.0 1.4

R&C 0.0 2.3 0.0 0.0 0.0 2.3

Corporate Center 0.0 0.0 0.0 0.0 3.5 3.5

Group 5.0 4.1 8.5 3.0 3.8 24.5

WM 1.1 0.6 0.1 0.5 0.0 2.2

WMA 0.0 0.0 0.9 0.0 0.0 0.9

Investment Bank 0.4 0.4 0.6 1.0(0.1) 2.3

Profit before tax Global AM 0 0 0 2 0 2 0 1 0 0 0 6

R&C 0.0 1.5 0.0 0.0 0.0 1.5

Corporate Center 0.0 0.0 0.0 0.0(4.2)(4.2)

Group 1.5 2.7 1.7 1.5(4.2) 3.3

1 Numbers are not comparable to the disclosed financial statements of our main local subsidiaries; represents a functional view, represents a more complete view of global and local sales for management purposes, as opposed to the split according to the he legal entity ntity where here the transaction is recorded;

2 Europe, Middle East, and Africa excluding Switzerland; 3 Refers to items managed globally

CFO/COO 16

LOGO

Regional and business division business division performance1—1Q14

CHF billion Corporate Center

EMEA2 Switzerland Americas Asia Pacific 3 Total

and global

WM 1.0 0.4 0.1 0.5 0.0 1.9

WMA 0 0 0 0 1 7 0 0 0 0 1 7

Investment Bank 0 6 0 3 0 7 0 6(0 0) 2 2

Operating income Global AM 0.1 0.1 0.2 0.1 0.0 0.5

R&C 0.0 0.9 0.0 0.0 0.0 0.9

Corporate Center 0.0 0.0 0.0 0.0 0.1 0.1

Group 1 7 1 7 2 6 1 1 0 1 7 3

WM 0.7 0.2 0.1 0.3 0.0 1.3

WMA 0.0 0.0 1.4 0.0 0.0 1.4

Investment Bank 0 5 0 2 0 5 0 4 0 1 1 8

Operating expenses Globaloba AMM 0.1 0.1 0.1 0.0 0.0 0.3

R&C 0.0 0.5 0.0 0.0 0.0 0.5

Corporate Center 0.0 0.0 0.0 0.0 0.5 0.5

Group 1.3 1.0 2.2 0.8 0.6 5.9

WM 0.3 0.2 0.0 0.2 0.0 0.6

WMA 0.0 0.0 0.2 0.0 0.0 0.2

Investment Bank 0.1 0.1 0.2 0.2(0.2) 0.4

Profit before tax Global AM 0 0 0 0 0 0 0 0(0 0) 0 1

R&C 0.0 0.4 0.0 0.0 0.0 0.4

Corporate Center 0.0 0.0 0.0 0.0(0.4)(0.4)

Group 0.4 0.7 0.5 0.4(0.6) 1.4

1 Numbers are not comparable to the disclosed financial statements of our main local subsidiaries; represents a functional view, represents a more

complete view of global and local sales for management purposes, as opposed to the split according to the legal entity where the transaction is recorded;

2 Europe, Middle East, and Africa excluding Switzerland; 3 Refers to items managed globally

CFO/COO 17

LOGO

Use of adjusted numbers

Basel III RWA, Basel III capital and Basel III liquidity ratios

Leverage ratio and leverage ratio denominator in this presentation are calculated on the basis of fully applied Swiss SRB Basel III, unless otherwise stated.

Refer to the “Capital Management” section in the 1Q14 financial report for more information.

Currency translation

Performance targets

Unless otherwise stated, performance targets exclude, where applicable, items considered non-recurring and certain other items that management believes are not representative of the underlying performance of our businesses, such as own credit gains and losses, restructuring-related charges and gain and losses on sales of businesses and real estate. Additionally where applicable performance targets assume constant foreign currency translation rates.

Rounding

CFO/COO 18

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2014Investor Update

Managing Down the Non-core and Legacy Portfolio

Phil Lofts

Group Chief Risk Officer

May 6, 2014

LOGO

Cautionary statement regarding forward-looking statements

Disclaimer: This presentation and the information contained herein are provided solely for information purposes, and are not to be construed as a solicitation of an offer to buy or sell any securities or other financial instruments in Switzerland, the United States or any other jurisdiction. No investment decision relating to securities of or relating to UBS AG or its affiliates should be made on the basis of this document. Refer to UBS’s first quarter 2014 report and its Annual report on Form 20-F for the year ended 31 December 2013. No representation or warranty is made or implied concerning, and UBS assumes no responsibility for, the accuracy, completeness, reliability or comparability of the information contained herein relating to third parties, which is based solely on publicly available information. UBS undertakes no obligation to update the information contained herein.

CRO 1

LOGO

Successfully and materially reduced RWA and LRD since 2012

Modest and closely managed remaining credit and market risk

Non-core and Legacy Portfolio RWA

CHF billion

59% reduction in 102.5 five quarters

Operational risk1 14.2

88.3

Legacy

2 34.2

Portfolio

Credit 60.0 Non-core 63.3 risk

4.5 4 other 23.5

36.5

Non-core 29.3 rates

17.1

25.8

1.2

Market 11.2 Non-core 25.0 credit 20.3 risk

10.7

7.1

31.12.12 31.3.14

LRD3 ~293 134

Non-core and Legacy Portfolio RWA reduced 59% since 31.12.12, excluding operational risk:

- Sold the vast of majority of Non-core cash positions

- Materially exited Non-core distressed credit portfolio

- Continued focus on reducing Non-core OTC portfolio

- Cut Legacy Portfolio market and credit risk in half

Credit risk RWA reduced by 59% since 31.12.12

- OTC exposures ~87% collateralized

- Aggregate OTC uncollateralized exposure ~CHF 4.4 billion, >75% rated investment grade or better

Market risk RWA reduced by 57% since 31.12.12

- Majority of Non-core market risk will be eliminated with planned exit of correlation trading portfolio

Leverage ratio denominator continues to be a key focus

- Reduced by ~54% since 31.12.12

- Unwind strategy will drive further reductions

Refer to slide 9 for details about adjusted numbers, Basel III numbers and FX rates in this presentation

1 Non-core and Legacy Portfolio operational risk; 2 Excluding operational risk; 3 Swiss SRB leverage ratio denominator, pro forma estimate for 31.12.12, Legacy Portfolio pro forma estimate for 31.12.12 based on period ending balance; 4 Of which CHF 9.2 billion of operational risk RWA from Non-core and CHF 14.2 billion of operational risk RWA from Legacy Portfolio

CRO 2

LOGO

Non-core Credit

Dominated by Structured Credit with strong further reduction expected

Non-core Credit RWA

excluding operational risk, CHF billion 7.1

0.6 Other

(65%) 0.9 Loans

20.3

18.9

Credit Structured risk 13.0 5.6

9.7 credit Market 7.8 7.1 risk

31.12.12 31.3.13 30.6.13 30.9.13 31.12.13 31.3.14 31.3.14

31.12.12 31.3.14 Change

Funded assets, CHF billion 10 2 (80%)

Positive replacements values, CHF billion 25 12 (52%) Exceptionally effective reductions in LRD and line

Swiss SRB LRD1, CHF billion ~110 38 ~(65%) items, reflects robust focus on bilateral unwinds and

# of line items ~550k ~160k >(70%) multilateral compressions of dealer-facing positions

Structured credit consists of CDS and tranched credit positions (index and bespoke) traded under a correlation strategy

- Referenced positions are corporate and sovereign names, predominantly US and EU corporates

- Agreement reached in April 2014 to exit majority of Structured Credit market risk2

- Additional reductions in RWA and LRD expected by end 2014 as trades are novated or mature; 31.12.14 RWA projected at ~CHF 1 billion

Loans consists predominantly of investment grade corporate undrawn facilities

Refer to slide 9 for details about adjusted numbers, Basel III numbers and FX rates in this presentation

1 Swiss SRB leverage ratio denominator, pro forma estimate of ending balance for 31.12.12; 2 Not reflected in 1Q14 figures

CRO 3

LOGO

Non-core Rates

RWA1 is mainly credit risk and driven by derivative counterparty exposure

Non-core Rates RWA

excluding operational risk, CHF billion 11.2

2.0 Non-linear OTC

(62%)

29.3

28.6

Credit 23.0 18.9

9.2 Linear OTC risk 13.8

11.2

Market risk

31.12.12 31.3.13 30.6.13 30.9.13 31.12.13 31.3.14 31.3.14

31.12.12 31.3.14 Change

Funded assets, CHF billion 18 2 (89%)

Positive replacements values, CHF billion 295 130 (56%) Reduction mainly driven by exiting and clearing of trades

Swiss SRB LRD2, CHF billion ~140 69 ~(51%) # of line items ~750k ~370k ~(51%)

LRD reduced >50% with trade exits, clearing, and compressions

Credit risk RWA reflects counterparty credit risks from both linear and non-linear OTC rates derivatives

- >90% of exposure collateralized (~85% cash, ~15% securities) with dealers and institutional counterparties

- Uncollateralized exposure: ~CHF 2.7 billion; ~260 counterparties; >87% investment grade; >50% rated AA- or better

Low market risk reflects active hedging in liquid markets

RWA reductions reflect parallel track strategy

- Largest 30 non-dealer counterparty RWA as of January 2013 reduced by >70% since 31.12.12 (15 materially exited)

- Dealer RWA reduced via compressions, clearing, optimization; down >70% since 31.12.12

Refer to slide 9 for details about adjusted numbers, Basel III numbers and FX rates in this presentation

1 Excluding operational risk; 2 Swiss SRB leverage ratio denominator, pro forma estimate of ending balance for 31.12.12

CRO 4

LOGO

A clear trajectory for exiting Non-core

Unwind strategies have been developed and implemented across all areas

OTC positions: natural decay of RWA

CHF billion

Reduced natural 27

22 decay

24 profiles reflect 21 17 active position 18 18 exits 31.3.14 16 15 14 12 10

30.9.12 31.12.13 31.12.14 31.12.15 31.12.16 31.12.17

30.9.12 projection 30.9.13 projection 31.3.14 projection

Unwind strategies include a mix of:

- Clearing, compressing and back-loading trades with other dealers

- Negotiating unwinds bilaterally

- Negotiating assignments/novations

- Book sales

Marginal efficiency of bilateral approach is expected to decline as efforts focus on names with smaller RWA

Portfolio and book sales important to achieve full exit

- Full sale eliminates support costs and maximizes LRD reduction

- Decisions will continue to be made on a multi-factor economic basis

Refer to slide 9 for details about adjusted numbers, Basel III numbers and FX rates in this presentation

CRO 5

LOGO

Legacy Portfolio

Significant exits across all asset classes; reduced risk profile well hedged

Legacy Portfolio RWA

excluding operational risk, CHF billion

50% reduction in five quarters

34.2 34.2

Other 4.5

Muni swaps and options 4.6 Auction rate

3.2 securities1 Credit Real estate assets 2.4 26.8 risk

Monolines 4.0 17.1 17.1

2.8

Reference linked 5.7 0.9 1.5 notes (RLNs) 2.2 12.7

2.0

Collateralized 3.1 Debt Obligations 9.8 7.4 Market (CDOs) risk 4.6 4.4

31.12.12 31.3.14

31.12.12 31.3.14 Change

Funded assets 20 14 (30%) Positive replacements values (PRV) 16 9 (44%) Swiss SRB LRD2 ~38 23 ~(39%)

CDOs, RLNs, Monolines: Predominantly CDS protection referencing ABS assets, hedged by long positions in those or similar cash assets; hedged positions mitigate impact of directional moves

Real estate assets: Primarily a portfolio of CDS positions with related hedges to mitigate the impact of directional moves

Auction rate securities1: Student loans, municipal obligations and auction preferred securities

Muni swaps and options: Long-dated vanilla interest rate swaps hedging bond issuance by US municipal counterparties

Other: Smaller positions including Blackrock loan

Credit and market risks substantially reduced; demonstrated by tight distribution of daily revenues

Daily revenue distribution

(1.1.13-31.3.14), CHF million

16% 14% 12% 10% 8%

Frequency 6% 4% 2% 0%

(45) (35) (25) (15) (5) 5 15 25 35 45

Daily revenue

Refer to slide 9 for details about adjusted numbers, Basel III numbers and FX rates in this presentation

1 Auction rate securities and auction preferred stock; 2 Swiss SRB leverage ratio denominator, pro forma estimate for 31.12.12

CRO 6

LOGO

Maximizing shareholder value

Unwinds balance capital release and exit costs to be economically efficient

Cumulative RWA reduction and quarterly revenues

RWA in CHF billion and revenues in CHF million

222

(27) (33)

(5.4)

(127)

(25.7)

(35.3)

(47.6) (51.8)

1Q13 2Q13 3Q13 4Q13 1Q14

Operating income excluding DVA and SNB StabFund option1 Cumulative RWA reduction excluding operational risk

Direct oversight by Group CEO, Group CFO/COO and Group CRO

Operating income negatively impacted by DVA that has reflected our spreads tightening over last year

Detailed plans are in place for exiting the portfolios and ensuring the Group meets its target capital ratios

Incentives are aligned with shareholders’ interests focused on capital release, infrastructure simplification and protecting our customer franchise

Trading decisions consider:

- Absolute exit costs

Capital consumption / tenor

- Funding charges

- Trade complexity

- Potential direct and indirect cost savings

Refer to slide 9 for details about adjusted numbers, Basel III numbers and FX rates in this presentation

1 DVA amounts were CHF 37 million in 1Q13, CHF (21) million in 2Q13, CHF (47) million in 3Q13, CHF (68) million in 4Q13, and CHF (19) million in 1Q14

CRO 7

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Key messages

Counterparty risks are largely collateralized or are with good quality credits

Clear strategy and robust oversight for further disciplined reduction of Non-core and Legacy Portfolio RWA and leverage ratio denominator

Speed of reduction is weighed against the ultimate benefit to shareholders

CRO 8

LOGO

Important information related to numbers shown in this presentation

Use of adjusted numbers

Basel III RWA, Basel III capital and Basel III liquidity ratios

Leverage ratio and leverage ratio denominator in this presentation are calculated on the basis of fully applied Swiss SRB Basel III, unless otherwise stated.

Refer to the “Capital Management” section in the 1Q14 financial report for more information.

Currency translation

Performance targets

Rounding

CRO 9

LOGO

2014Investor Update

Global AM —An Attractive Franchise with Growth Potential

Ulrich Körner

CEO UBS Global Asset Management

May 6, 2014

LOGO

Cautionary statement regarding forward-looking statements

Global AM 1

LOGO

Attractive industry fundamentals

Evolving client needs

Compelling growth prospects

Attractive risk-adjusted returns

Regulation: cost and opportunity

Growing demand for outcome oriented solutions and bespoke products

Shift from "local" to "global" portfolios

Continued separation between beta and high alpha

Structurally attractive growth prospects (~2-3x GDP growth1)

Double-digit growth1 forecast for solutions and passive capabilities; high single-digit growth1 expected for alternatives

Attractive risk/reward profile with returns significantly in excess of the cost of capital

Highly cash flow-generative business

Increasing requirements re capital levels, size, client onboarding, etc.

Large global asset managers best positioned to deal with regulatory changes

Shift towards a guided (open) architecture, reflecting increasing regulatory burden

1 BCG Global Asset Management Survey, 2013

Global AM 2

LOGO

Global AM — An attractive franchise with growth potential

Capital-light, cash flow generative business positioned to benefit from industry fundamentals and management initiatives

2011 2012 2013

585 456 543

Profit before tax

adjusted, CHF million

31 25 18

RoAE

adjusted, %

Stable profit contribution

Attractive risk/reward profile

Refer to slide 12 for details about adjusted numbers, Basel III numbers and FX rates in this presentation

Global AM 3

LOGO

Diversified across regions, asset classes and channels

Well positioned to capture opportunities in shifting market dynamics

Regions1

% of invested assets, 31.3.14

Switzerland EMEA

APAC 23

Americas

True global reach

Solid position in core developed markets

Strong position in key growth markets, in particular across APAC

Asset classes1 Distribution channels1

% of invested assets, 31.3.14 % of invested assets, 31.3.14

UBS's wealth Equity management businesses Fixed

13 Income

29 19

Passive 29

Multi-

15 10

Asset

(incl. solutions)

14 10

Third-party

Alternatives wholesale Third party Money instiutional2 Market

Broad traditional offering providing Significant institutional franchise and core building blocks solid growing third party wholesale client base

High growth passive business

Strong collaboration with UBS's

Leading manager in the leading wealth management alternatives segment businesses

1 Share of total invested assets as per internal distribution view for regions and distribution channels, and product view for asset classes; 2 Incl. invested assets from UBS Investment Bank channel

Global AM 4

LOGO

Solid investment performance with key areas of strength to build on

Investment performance

31.3.14

Equity1 Fixed Income1 Multi-asset1 Alternatives2 Real Estate3

(incl. solutions) (O'Connor and A&Q)

12% 13%

33% 43% 1 year 57% 49% 51% 67% 88% 87%

10% 3%

27% 27% 30%

3 years

70% 73% 73% 90% 97%

% below peer median1,3/ index2 % above peer median1,3/ index2

1 Percentage of invested assets per Lipper ranking. Investment performance versus peers of UBS Swiss, Luxembourg, German and Irish-domiciled wholesale funds available to UBS's wealth management businesses and also distributed through other wholesale intermediaries. The UBS fund universe covered by Lipper includes actively-managed funds totalling CHF 98 billion on 31.3.14. Source: ThomsonReuters LIM 2.7 (Lipper Investment Management) data extracted 7.4.14; 2 Percentage of invested assets above appropriate peer indices among key hedge fund and hedge fund-of-fund products with at least a 3-year record as at 31.3.14; 3 Percentage of invested assets by peer quartile ranking for key real estate funds with relevant peer universes; some products have significantly lower leverage and risk profiles than those of peers

Global AM 5

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Driving profitable growth

Strategic priorities focusing on four key levers

Investment performance

Distribution

Talent

Operational efficiency

Establish clear investment performance metrics

Fully leverage diversified capabilities and capitalize on strong position in high alpha, smart beta capabilities and multi-asset solutions

Increase focus on key investment strategies/capabilities

Strengthen focus on core and key growth markets

Dedicated wholesale and institutional distribution approach

Global top client coverage model to deliver holistic service quality and expertise

Further leverage internal collaboration with WM and WMA

Foster an environment that attracts, develops and retains industry-leading talent and expertise

Extend talent development programs to cover key areas of growth

Upgrade operating platforms and streamline existing processes to enhance efficiency and address future needs

Global solutions, locally tailored/packaged to address specific local requirements

Global AM 6

LOGO

Leveraging our strong position in alternatives and real estate

A leading alternatives manager (#41) with CHF 78 billion in invested assets

Global Asset Management alternatives2

31.3.14, invested assets

A&Q

(CHF 25 billion)

O'Connor

(CHF 5 billion)

Real Estate

(CHF 40 billion)

One of the largest hedge fund allocators globally5

Long track record of tactical allocation across wide range of managers and strategies

Single manager hedge fund business with 14-year track record dedicated to absolute return investment management

Largest, most diversified bank-owned real estate manager

Capabilities across the risk/return spectrum with focus on core and value-add

Long track records across major markets

Returns reflect lower leverage and risk profiles of certain products

Investment performance

% of invested assets with returns above/below peer indices, 31.3.14

1 year 3 years

12%

88% 100%

14% 14%

86% 86%

33% 27%2 52% 2 2 48% 55%2 67% 73%

Above peer index3/ median4 Below peer index3/ median4

1 Source: Towers Watson Financial Times, July 2013; 2 UBS Global AM invested assets in alternatives excl. infrastructure and private equity; 3 Percentage of invested assets above appropriate peer indices among key hedge fund and hedge fund of fund products with at least a 3-year record at 31.3.14;

4 Percentage of invested assets by peer quartile ranking for key real estate funds with relevant peer universes; 5 InvestHedge Billion Dollar Club, June 2013

Global AM 7

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Leading capabilities in the multi-asset solutions business

Innovative solutions leveraging our expertise (examples)

Asset allocation and currency

Example: Global Allocation Fund (NAV indexed)

200 150 100

2009 2014

UBS Leading competitor

Manager selection

Example: PACE Select gross absolute performance1

14.1% 15.9%

8.9%

1Y 3Y 5Y

Information ratio 2.64 0.85 1.45

Superior manager selection insights and access, resulting in consistent alpha generation

Top-10 global balanced funds provider; strong performance track record

Structured solutions

Client-focused solutions, combining Global Asset Management's investment capabilities with solutions overlay (e.g., downside risk reduction, income)

Passive

Solution

Capital preservation

Active

Income enhancement

(Equities, fixed income, etc.)

Volatility control

Targeted outcomes

Alternatives

1 Annualized performance

Institutional financial advisor

Flexible tactical and strategic advisor providing CIO-type services to key clients, based on Global Asset Management's investment expertise including LDI, risk advisory, etc.

Global AM 8

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Strong collaboration with WM and WMA

Working together to deliver the best of Global Asset Management to WM and WMA and their clients

Mutual fund penetration of invested assets

31.12.13, CHF billion

WM 23% 886

Significant mutual fund penetration provides attractive opportunity for Global AM from increased collaboration

WMA 36% 865

Share of invested assets in mutual funds

(UBS Global Asset Management and third parties)

Key measures to enhance co-operation

Provide superior support and services to the world's premier wealth management platform:

– Strengthen coverage model for WM and WMA with clear responsibilities and accountabilities

– Increase focus on joint product development tailored to clients' needs

– Continue to leverage strong alternative investment capabilities to meet eet increasing demand

– Deliver institutional-like and customized solutions to UHNW and GFO clients

– Increase accessibility of UBS mutual funds globally

Global AM 9

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Targets1

Net new money growth

Excluding money market flows, %

3-5

0.8

(2.3)

(3.4)

Gross margin

bps

32-38

33 33 33

2011 2012 2013 Target

Cost/income ratio

adjusted, %

71 69 60-70

Profit before tax

adjusted, CHF million

1,000

585 543 456

2011 2012 2013 Target2

Refer to slide 12 for details about adjusted numbers, Basel III numbers and FX rates in this presentation

1 Annual performance targets. Performance targets assume constant FX rates; 2 Profit before tax target in the medium term

Global AM 10

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Key messages

Well diversified and highly cash flow generative business in an industry with attractive fundamentals

Striving to deliver superior investment performance with industry-leading talent and expertise

Trusted partner for clients with our high quality solutions, drawing on the full breadth of the firm's capabilities

Targeting a profit before tax of CHF 1 billion in the medium term

Global AM 11

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Important information related to numbers shown in this presentation

Use of adjusted numbers

Basel III RWA, Basel III capital and Basel III liquidity ratios

Leverage ratio and leverage ratio denominator in this presentation are calculated on the basis of fully applied Swiss SRB Basel III, unless otherwise stated.

Refer to the “Capital Management” section in the 1Q14 financial report for more information.

Currency translation

Performance targets

Rounding

Global AM 12

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2014Investor Update

Leading Global Franchise with Superior Growth Prospects

Bob McCann

CEO, Wealth Management Americas and UBS Group Americas

Jürg Zeltner

CEO, Wealth Management

May 6, 2014

LOGO

Cautionary statement regarding forward-looking statements

Disclaimer: This presentation and the information contained herein are provided solely for information purposes, and are not to be construed as a solicitation of an offer to buy or sell any securities or other financial instruments in Switzerland, the United States or any other jurisdiction. No investment decision relating to securities of or relating to UBS AG or its affiliates should be made on the basis of this document. Refer to UBS’s first quarter 2014 report and its Annual report on Form 20-F for the year ended 31 December 2013. No representation or warranty is made or implied concerning, and UBS assumes no responsibility for, the accuracy, completeness, reliability or comparability of the information contained herein relating to third parties, which is based solely on publicly available information. UBS undertakes no obligation to update the information contained herein.

WM/WMA 1

LOGO

Our wealth management franchise is unrivalled

Invested assets of CHF 1.8 trillion managed by over 11,000 advisors

Wealth Management Americas

2013

USD 1 trillion invested assets, USD 1 billion adjusted pre-tax profit USD 1 million in revenue per FA

Well positioned to capture growth opportunities; continued progress in banking initiatives

Invested assets

31.3.14, CHF billion

872 897

Wealth Management

2013

CHF 0.9 trillion invested assets, CHF 2.4 billion adjusted pre-tax profit CHF 1.8 million in revenue per CA

Leading position in Europe, APAC, Emerging Markets, Switzerland and UHNW segment by invested assets1

Profit before tax: WM + WMA Net new money: WM + WMA Invested assets: WM + WMA

adjusted, 2013, CHF billion CHF billion CHF billion

3.3 54 1,769

2.7 47 1,593

+25% +14% +11%

2012 2013 2012 2013 31.12.12 31.3.14

“Best Private Bank Globally 2013” and “Best Global Wealth Manager 2013“2

Refer to slide 31 for details about adjusted numbers, Basel III numbers and FX rates in this presentation

1 Scorpio Partnership Private Banking Benchmark, Private Banker International, UBS Estimates; 2 Euromoney 2013

WM/WMA 2

LOGO

UBS is best positioned to seize the global wealth management opportunity

Our footprint is unique with a strong presence in growth markets

UBS invested assets

CHF billion 31.3.14

North America1,2

estimated market growth CAGR 2012-2017

~2%

872

Europe including Switzerland1,3

estimated market growth CAGR 2012-2017

~3%

525

Fundamentally attractive industry economics

Compelling growth prospects

– UHNW ~8%1

– HNW ~6%1

Still highly fragmented industry

Emerging markets1,2,4

estimated market growth CAGR 2012-2017

~8%

140

UHNW globally1,5

estimated market growth CAGR 2012-2017

~8%

424

APAC1

estimated market growth CAGR 2012-2017

~8%

225

1 BCG World Wealth Report 2013; incl. retail households; 2013 growth based on growth forecast; 2 WMA’s Latin America business is included in the North America invested assets, not in emerging markets; 3 Includes Western Europe and all other countries not covered elsewhere, beneficiary owner domicile view, invested assets are the sum of the invested assets usually reported in Europe and Switzerland; 4 Middle East & Africa, Latin America and Eastern WM/WMA 3 Europe; 5 UHNW invested assets overlap with the regional split

WM/WMA 3

LOGO

Leveraging the Group capabilities to serve our clients

Investment Bank

Access to capital markets and product development

Top-notch execution & institutional-like client coverage

Strength in Equities and FX

Research

M&A advisory/Corporate Finance

Joint venture with wealth management businesses: Global Family Office

Retail & Corporate (for WM)

Client referrals

Largest and most efficient booking center

Domestic reach in Swiss market

Client

Global Asset Management

Wide range of investment products

Strength in Equities, Alternatives, and Real Estate

Tailored solutions

Corporate Center

Financial strength

Strong brand

Efficiency opportunity

WM/WMA 4

LOGO

Management agenda to drive profit growth

Investment engine

UHNW/GFO

Pricing

Cost efficiency

Banking products and lending

Leverage our global expertise across the entire client base Apply our unique set of global capabilities across both businesses Implement pricing aligned with value proposition Manage direct costs to stay within the new cost/income targets Prudently expand services to lending and financing solutions

We aspire to 10-15% adjusted pre-tax profit growth

WM/WMA 5

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Wealth Management Business Division

LOGO

WMWMA

Wealth Management operating income

CHF billion, arrows illustrative

(9%) +14%

7.2

7.6

Management priorities

Delivered strong revenue growth while absorbing headwinds

Adjusted operating income 2011

Deposit spread compression

Offshore transformation

Retrocession-free discretionary mandates

Treasury related income

Book transformation1 and pricing

Net new money

Client activity

Security market performance and FX

Other income

Adjusted operating income 2013

Refer to slide 31 for details about adjusted numbers, Basel III numbers and FX rates in this presentation

1 Book transformation describes our focus on increasing the share of mandates as a percentage of total invested assets

WM/WMA 7

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WMWMA

Over 40% of revenues from Asia Pacific and Emerging Markets

Operating income by business area By client segment

adjusted, CHF billion 2013

7.6

7.2

18%

Emerging markets 18%

35% 41%

Asia Pacific 17% 22%

Switzerland 21%

19%

Europe 44%

40%

20112 2013

Operating income

~28%

~72%

Profit before tax1

~30%

~70%

UHNW Other

UHNW cost/income ratio: ~63%

Substantial increase in profit contribution from APAC

Continued investments in Emerging Markets

Europe and Switzerland most affected by low levels of interest rates and transactions

Refer to slide 31 for details about adjusted numbers, Basel III numbers and FX rates in this presentation

1 Adjusted, excluding CHF 107 million for Swiss/UK tax agreement and CHF 58 million for cross-border litigation provisions; 2 Excluding the gain on the sale of the strategic investment portfolio of CHF 433 million

WM/WMA 8

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WMWMA

Clear strategic priorities to drive growth

Making investment management part of our DNA

Transforming advisory Growing UHNW Reinvigorating HNW

Expanding our global footprint

Leveraging our unique platform

Place investment management and portfolio construction1 at the heart of our offering

Shift Traditional Advisory2 assets into mandates to provide a greater selection of value-added services to clients

Further enhance and capitalize on our market-leading position in high-growth global UHNW segment, including GFO

Refocus and invest in our HNW business to optimize competitive advantages, drive growth and leverage mandate and advice capabilities

Continue investments into our global onshore footprint to capture growth opportunities and appropriately balance offshore/onshore businesses

As industry transforms, increasingly translate competitive advantages into profitable market share gains

1 Portfolio construction = Strategic Asset Allocation; 2 Traditional Advisory consists of advisory assets which are not under mandate contract

WM/WMA 9

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WMWMA

Taking care of our clients’ wealth

Leveraging our investment engine across the entire client base

Client profiling

Return

Risk

House View

Traditional Advisory

Discretionary mandates

Advisory mandates

Deep understanding of our clients’ investment needs and risk tolerance

Six consistent risk/return profiles used across all products

Clear and consistent views on markets and asset classes used by all advisors around the world

Input from >850 in-house specialists and renowned external money managers

Institutional-type response time to market events

UBS House View tailored to regional and local demands

Ability to customize

Extensive external and internal communication to support implementation and build reputation as an investment manager

WM/WMA 10

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WMWMA

We aspire to manage a larger proportion of invested assets

Positive impact on gross margin

Traditional Advisory (Cash and cash-equivalent1)

Traditional Advisory (Non-cash assets)

Discretionary and advisory mandates

22% 56% 22%

28%

72%

Traditional Advisory 100%

~40%

Benefits

Superior client value proposition allowing for premium pricing

Gross margin pick-up

Increasing share of higher-quality recurring revenues

Scalability of mandate platform: low marginal costs

Institutionalization of relationships

Scope for cost savings as book shift progresses

Lower regulatory risk exposure

Potential for positive performance impact on asset base

Current book structure2

Aspirational book structure

1 Cash and cash-equivalent include all accounts, short-term deposit and money market instruments (including funds); 2 As at 31.12.13

WM/WMA 11

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WMWMA

Seizing the revenue opportunities and positioned for macro upside

Revenue development 2013–2016

illustrative example

Move towards premium offering

Revenues 2013

Regulatory headwinds

Book transformation and pricing

Net new money growth

Invested asset performance

Client activation

Interest yield

Security markets

Security market volumes and FX volatility

Revenues 2016

Comments

Outflows in the context of fiscal and regulatory concerns

Shift of assets into mandate products

Pricing better etter aligned ligned with ith value alue proposition

Client acquisition and share of wallet growth

Alpha generation from investment engine

Client activation in Traditional Advisory space (success on mandates reduces revenue impact)

Diversified FX exposure due to global presence

Expected tapering of net interest income compression, upside from future rate increases

Level of main asset classes impacting invested assets

Client risk appetite, trading behavior and invested assets sensitivity

WM/WMA 12

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WMWMA

Positive operating leverage

Low marginal costs from additional revenues

Operating leverage

illustrative example, bars not to scale

Increasing focus on costs

Realizing efficiency improvements to fund investments

Continued annual investments of 3-5% of revenues

Pre-tax profit t

Net cost growth and investments

Natural cost growth

Rising regulatory expenses

Strategic investments

Allocated cost savings

Successful execution of Corporate Center model

Front office cost savings

Front office efficiency

Non-revenue-generating population and rank structure

Organization design

Structural “positive jaws”

Low marginal costs from additional revenues

Scalable platform

Capitalizing on our investments

Positive operating leverage supported by business model, mix shift, and cost savings

Pre-tax profit t+1

WM/WMA 13

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Wealth Management Americas Business Division

LOGO

WMWMA

Accelerate growth through transformation

WMA’s unique positioning and global reach enabling growth through transformation

30% 29%

25% 24%

20% margin 19% it

15% prof 14% tax

10% e -

5% 4%

0% (2%)

60% 65% 70% 75% 80% 85% 90% 95% 100%

Clients with invested assets USD >1 million

Wire- WMA house Future median

2013 2011 2009

US private bank median

3 pillars of growth

Banking products and lending

Wealth Management advice

Cross-business collaboration

= USD 500 billion

Source: Company filings, McKinsey analyses, and WMA analyses

Note: Wirehouse data based on wealth management businesses of Bank of America, Morgan Stanley and Wells Fargo. Percentage of invested assets greater than USD 1 million based on McKinsey analysis; pre-tax profit margin and asset size derived by WMA

WM/WMA 15

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WMWMA

Pillars of further growth—Banking and lending

Lending balances

USD billion

+88%

39.1

3.5

6.4

29.7

4.9

2.0

20.8

2.8

0.1

29.2

22.8

17.9

31.12.09 31.12.11 31.12.13

Securities-based lending Mortgages Other

Mortgage balances and securities-based lending increased by 220% and 28%, respectively, between 2011 and 2013

Over 99% of loans secured by securities (83%) and residential property (16%)

Since 2010 average spreads earned on securities-based lending increased by 29 bps

Strong advisor engagement, well positioned for further growth:

– Advisor penetration1 in mortgage products increased from 8% in 2009 to more than 26% in 2013; ambition to double

– Clients with new securities-based lending approvals in 2013 generated ~USD 10 billion in net new money

1 Advisor penetration defined as an advisor originating more than 1 mortgage in a rolling 12-month period

WM/WMA 16

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WMWMA

Pillars of further growth—Holistic wealth management advice

Clients need wealth management advice

Plan Access Save Borrow Grow Protect Give

Clients more satisfied when receiving more holistic wealth management advice

Satisfaction with firm

Satisfaction with advisor

% likely to refer advisor

Satisfaction with value of fees

% of assets with advisor

Breadth of advice1

79 96

79 98

74 98

85 63

61 73

Executing programs to support advice delivery

Aligned incentive programs

Developing advisors

Team formation

Advisor training/eLearning

Practice management

Client focus/efficiency

Supporting advisors in delivering holistic advice

Global CIO

Marketing

Source: UBS Investor Survey (March 2014), 1,145 respondents with more than USD 1 million in invested assets

1 Breadth of advice represents number of advice dimensions received by investor (shown 1 advice dimension vs. 7 advice dimensions)

WM/WMA 17

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WMWMA

Financial plans drive deeper relationships and stronger economics1

Existing clients

YoY change

A financial plan drives stronger economics

Revenues

Advisory program penetration

Client retention

57% 539% 22%

New clients

YoY change

A financial plan drives asset growth

NNM 261%

NNM

New clients with plan prior to 306% account opening

1 Based on internal analysis of WMA (sample of existing and new) households who received a financial plan vs. equivalent households who did not, comparing their change in key performance metrics between the pre-plan and post-plan time periods; figures above represent differences in period-over-period change between plan households and non-plan equivalent households

WM/WMA 18

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WMWMA

Pillars of further growth—Cross-collaboration to deliver the firm

3,488 referrals and 943 wins in 2013; 1Q14 IB referral revenue up 2.3x YoY

Collaboration within organization to meet client needs Fostering a culture of collaboration

WM/WMA

Global CIO and Wealth Management Research

Global Family Office Private Bank Wealth Advice Center

Investment Bank

M&A and IPOs

Block trades

Corporate and structured lending

Corporate Services

Equity plan advisory services Institutional consulting and 401k Corporate cash management Directed share programs

Global Asset Management

Investment solutions for retirement plans and institutions Corporate cash management

Accomplished:

Stronger Americas regional governance with cross-business leadership

Created regional client committee

Defined referral incentive structure

Underway:

Developing trust and business relationships between bankers and advisors

Proactively identifying opportunities

– WMA C-Suite/Board member relationships

– Corporate services opportunities from IB relationships

– IPO and liquidity event transactions

WM/WMA 19

LOGO

Targets

LOGO

Targets1

Wealth Management Americas

Cost/income ratio

adjusted

91% 90% 86% 80-90% 75-85%

2011 2012 2013 Old New target target

Net new money growth

annual % of invested assets

2-4%

2.9%

1.9% 2.3%

2011 2012 2013 Target

Gross margin

bps

79 78 79 75-85

2011 2012 2013 Target

Wealth Management

68% 71% 66% 60-70% 55-65%

2011 2012 2013 Old New target target

3-5%

4.4%

3.5%

3.1%

2011 2012 2013 Target

96 95-105

89 88

2011 2012 2013 Target

Very limited capital consumption required for capturing structural growth potential

Refer to slide 31 for details about adjusted numbers, Basel III numbers and FX rates in this presentation

1 Annual performance targets. Performance targets assume constant FX rates

WM/WMA 21

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Key messages

Our wealth management businesses are uniquely positioned to capture the global wealth management opportunity

We leverage our global platform and the capabilities of the entire Group to serve the needs of our clients

We aspire to deliver 10-15% adjusted pre-tax profit growth per year over the cycle across both our wealth management businesses

WM/WMA 22

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Appendix

LOGO

Key elements of our platform

Global reach and leading market positions

Clients from >200 domiciles covered via 25 booking centres globally

Presences in >40 countries with increasing share of total assets

Global reach allowing to capture growth in APAC, GEM and UHNW segment

Global compliance and risk management framework

Robust framework in place supporting our front-to-back offering across multiple jurisdictions

Fully embedded product and investment suitability rules

Strong risk management track record

WM platform

Comprehensive investment and advice offering

Highly scalable investment management and advice engine, large product shelf

Close cooperation with all other UBS divisions

Most of the value chain across markets/client segments covered in-house, broad pool of specialists

Unrivalled execution, custody and reporting capabilities

Executed WM order flow of >CHF 2,500 billion across all asset classes in 2013; ~590k products ready to trade

Custody offering allowing maximum safety and flexibility

Global customized consolidated reporting including in-depth performance analytics

Unique global platform covering the entire value chain across many markets and client segments

Given barriers of entry, impossible to replicate organically

WM/WMA 24

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Process behind our investment engine

Client Analysis UBS House View Investment Investment Portfolio

profiling strategy solutions management goals

CIO Office IPS

Client advisors gather >850 economists, Formation of the Based on UBS House Delegated, Investment and

and maintain deep analysts and single UBS House View, determination segregated advisory mandates

understanding of our investment experts View with clear and of strategic asset investment aligned to client

clients’ investment within UBS consistent positions allocation (SAA) and management profiles, reference

needs and risk on markets and tactical asset portfolios reflecting currencies and

tolerance asset classes allocation (TAA), UBS House View, investment strategies

Coverage of all major

augmented by tailored to client’s

asset classes Investment mandates:

Six consistent risk/ thematic and tactical profile Optimal instrument

Tailored

return profiles used • Reconciling local, communication to investment satellite ideas • Contract-based portfolio selection within construction;

across all products bottom up input with internal and advisory enabling ability to accomplish

top down macro external clients • Local, regional, and clients to monitor and personal investment

Large scale views global opportunities correct portfolios instructions

investment in systems • “Avoiding tunnel presented in one against their profile—Advisory mandates with

allowing real time • Constant monitoring, vision” through consistent framework and UBS House View daily health checks and

scenario analysis customized solutions

adjustment, systematic feedback

communication, from external fund • Extensive quantitative • Providing Traditional • Leverage single

and implementation managers as well as modeling to ground Advisory clients with instrument expertise

input from client- qualitative solutions aligned with for optimizing

facing front-end assessments UBS House View Traditional Advisory

portfolios

WM/WMA 25

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Chief Investment Office

Fully institutionalized, state-of-the-art and highly scalable Chief Investment Office

Resources Processes Performance

CIO office staff ~180 in 12 locations Sophisticated processes to form Objective: achieving best risk/return

Next to buy-side investment experts, investment strategies and manage outcomes while matching client needs

significant resources dedicated to positions, incorporating • Strategic Asset Allocation with a 5- to 7-

communication and – Best practice quantitative and qualitative year time horizon, expected to deliver

process management components majority of investment performance

Given front-end demand, dedicated – Extensive challenge process, including CIO Global Unconstrained Investment

external and client feedback

regional and UHNW CIO offices View (tactical 6-month horizon):

Ability to draw input from >850 – Real-time, live updating capability deploying tactical trades to SAAs within

specialists within UBS Group and to • Since 2010, developed and embedded pre-defined and limited risk budget =>

leverage real-time input from the IB’s fully integrated value chain together 122 bps of alpha in 20131

direct market presence with internal partners

Heavy technology spending to develop X Ensuring impact of formed investment

necessary internal IT capabilities views and aligned product solutions on 125 bps

122 bps

– Built scalable proprietary computer – Discretionary mandates

systems to run client portfolio 100 bps

– Advisory mandates

health checks Target

75 bps

– Created automated client alerts on – Traditional Advisory business range

needed adjustments to optimize – UBS mutual funds 50 bps

risk/return X Benefiting individual wealth 25 bps

management clients by delivering

institutional quality services in 0 bps

Dec Apr Aug Dec

customized ways 2012 2013 2013 2013

1 Comparative results based on market indices representing the relevant asset sub-classes, measured on a currency hedged basis with the exception of emerging market equities. The performance calculation does not take into account any transaction costs or fees

WM/WMA 26

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Investment Products and Services (IPS)

Enabling the transformation of the WM book of business

Discretionary investment management with broad product offering

Ability to customize though personal instructions

~100,000 discretionary mandates across asset classes and geographies

Consistent translation of UBS House View into ~10,000 model portfolios

~400 specialists

Personalized wealth life-cycle advice

Highly specialised experts across disciplines and markets

Ability to deliver sophisticated and bespoke client solutions in-house

Broad product offering

~420 specialists

IPS1

Discretionary Advisory Mandates Mandates

Clients

Non-contract Wealth Advice and Planning Brokerage

Fee-based advice in portfolio context

Daily monitoring of portfolio against pre-defined criteria with CA alerts

Daily customized investment opportunities in line with UBS House View, portfolio risk/return contribution and suitability

~30,000 mandates across asset classes and geographies

~130 specialists

Traditional Advisory and shelf engine

Advice in line with UBS House View

Offering includes Equities, Fixed income, FX, Structured Products, Investment Funds, Alternatives and Precious Metal

Monitoring of ~26,000 securities, of which 6,000 actively offered

~300 specialists

Integral part of value chain and transformation enabler Focus on customization, innovation and scalability First point of contact for client advisors

1 As well as the functions highlighted on the slide, IPS is also responsible for handling the WM order management/execution, risk and regulatory management, distribution and sales support

WM/WMA 27

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We deliver differentiated solutions to our clients

Average industry standard

Comprehensive wealth planning approach Focus on customization at the client level

Discretionary Advisory

mandates assets

Investment process Advice driven by

driven by individuals individual CAs

Limited customization Single-product

potential brokerage focus

without portfolio

Retrocessions in context

mandates

• Limited product shelf

Discretionary Advisory Traditional

mandates mandates Advisory

Fully-institutionalized Advice in line with Advice reflecting UBS

process portfolio construction, House View across all

reflecting client profile asset classes

Optimal instrument

selection within defined • Daily portfolio • Access to extensive

portfolio construction1 health checks2 product shelf

Individual client Daily opportunity Access to institutional

instructions offering2 execution capabilities

Investment performance Access to specialists

1 Portfolio construction = Strategic Asset Allocation; 2 UBS Advice only, relating to the identification of new health check issues that have arisen in the last 24 hours. UBS Advice is our flagship advisory mandate product which we started to roll out in 2013 – it is tailored to clients who do not require regular access to an investment specialist

WM/WMA 28

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WMWMA

Revenue sensitivity to management actions and market factors1

Execution of management priorities

Less conservative investment behavior

Book transformation Net new money Pricing

Positive external factors

Foreign exchange2

Interest yield

Security markets

Security market volumes

& FX volatility

10% of clients shift from conservative to a more balanced portfolio based on current book concentration: ~CHF 140 million per year (~1.6 bps RoA)

2 additional mandate sales (CHF 1 million each) for every client advisor per quarter: ~CHF 100 million per year (~1.1 bps RoA)

50% of client advisors increase their current book size by 5% NNM growth: ~CHF 100-150 million per year

50% of client advisors remove discounts on invested assets by 10%: ~CHF 90 million per year (~1 bp RoA)

10% depreciation in the CHF vs. USD: ~CHF 250 million 10% depreciation in the CHF vs. EUR: ~CHF 190 million 10% depreciation in the CHF vs. GBP: ~CHF 40 million

100 bps parallel shift in the yield curves of all currencies: ~CHF 700 million per year, based on constant deposit and loan volumes (~8 bps RoA)

10% rise in global security prices (equities and fixed income): ~CHF 200-350 million per year (incremental recurring income)

10% increase in traded securities and FX market volumes (equities, fixed income and FX): of ~CHF 90 million per year (~1 bp RoA)

1 Estimated based on FY13 revenues and 31.12.13 invested assets, deposits, and loan volumes; 2 10% depreciation in the CHF would also result in incremental costs not reflected on this slide

WM/WMA 29

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WMWMA

Strong financial performance

Pre-tax profit growth

(1H12=100)

130

YoY 120 2H12/13

110

+14%

100

+7%

1H12 2H12 1H13 2H13

UBS WM WM peers1

Net new money growth

(%, annualized)

6 FY13

2 +4.4%

0 +0.8%

(2)

1H12 2H12 1H13 2H13

UBS WM WM peers2

Cost/income ratio

(%)

YoY

75 2H12/13

(1) ppt

(2) ppt

1H12 2H12 1H13 2H13

UBS WM WM peers1

Indexed RoA

(1H12=100)

100

YoY

98 2H12/13

(2%)

90 (3%)

1H12 2H12 1H13 2H13

UBS WM WM peers1

Europe

Best private banking

services overall

Best relationship

management

Best range of investment

products

Best range of advisory

services

Best HNW services

APAC

Best private banking

services overall

Best range of investment

products

Best range of advisory

services

Best UHNW services

Switzerland

Best Private Banking

Services overall

Best range of investment

products

Best range of advisory

services

Best UHNW services

Emerging markets

Best relationship

management (CEE)

#1 Inheritance & succession

planning (ME)

1 Peer group: Credit Suisse, Julius Baer, HSBC PB, Société Générale PB, Crédit Agricole PB, ABN AMRO PB, Nordea PB, JP Morgan (only for RoA); WM peer averages are weighted based on 4Q13 invested assets (figures only adjusted for official one-offs); 2 Peer group: Credit Suisse, Julius Baer, HSBC PB, BNP Paribas WM, Société Générale PB, Crédit Agricole PB, ABN AMRO PB (FY11 taken as proxy for 2H11), Nordea PB; WM peer averages are weighted based on 4Q13 invested assets

WM/WMA 30

LOGO

Important information related to numbers shown in this presentation

Use of adjusted numbers

Basel III RWA, Basel III capital and Basel III liquidity ratios

Leverage ratio and leverage ratio denominator in this presentation are calculated on the basis of fully applied Swiss SRB Basel III, unless otherwise stated.

Refer to the “Capital Management” section in the 1Q14 financial report for more information.

Currency translation

Performance targets

Rounding

WM/WMA 31

This Form 6-K is hereby incorporated by reference into (1) each of the registration statements of UBS AG on Form F-3 (Registration Number 333-178960) and Form S-8 (Registration Numbers 333-49210; 333-49212; 333-127183; 333-127184; 333-162798; 333-162799; 333-162800; 333-178539; 333-178540; 333-178541; and 333-178543) and into each prospectus outstanding under any of the foregoing registration statements, (2) any outstanding offering circular or similar document issued or authorized by UBS AG that incorporates by reference any Form 6-K’s of UBS AG that are incorporated into its registration statements filed with the SEC, and (3) the base prospectus of Corporate Asset Backed Corporation (“CABCO”) dated June 23, 2004 (Registration Number 333-111572), the Form 8-K of CABCO filed and dated June 23, 2004 (SEC File Number 001-13444), and the Prospectus Supplements relating to the CABCO Series 2004-101 Trust dated May 10, 2004 and May 17, 2004 (Registration Number 033-91744 and 033-91744-05).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


UBS AG

By:	/s/ David Kelly
	Name:	David Kelly
	Title:	Managing Director

By:	/s/ Sarah M. Starkweather
	Name:	Sarah M. Starkweather
	Title:	Executive Director

Date: May 6, 2014