UBS Investor Day Zurich Wealth Management International

Transcription

1 UBS Investor Day Zurich Wealth Management International Raoul Weil, Head of Wealth Management International May 31, 2006

2 SECTION 1 Wealth Management International (WMI) An overview

3 [t211887] [printed: Mai 23, 2006] [saved: Mai 23, 2006] R:\PRESENTATIONS\2006 Raoul Weil Presentations\investor's day \R Weil WMI for May 31v9 with SN.ppt WMI Our strategy Best People Hire, retain and train the best client advisors Perfecting our "UBS Client experience" Best Process Best Products Industry leading structured advisory process Segment-specific offering with focus on: Core Affluent, HNW, KeyClients and Financial Intermediaries Efficiency in established markets Growth in expanding markets Selected start-up projects 2

4 WMI - Hiring process Structured and selective hiring process Best People [t211887] [printed: Mai 23, 2006] [saved: Mai 23, 2006] R:\PRESENTATIONS\2006 Raoul Weil Presentations\investor's day \R Weil WMI for May 31v9 with SN.ppt CVs submitted 100% 1st structured interview round against profile 25% Numerical test 2nd interview round H I R E 5% 3

5 WMI - NNM per client advisor [t211887] [printed: Mai 23, 2006] [saved: Mai 23, 2006] R:\PRESENTATIONS\2006 Raoul Weil Presentations\investor's day \R Weil WMI for May 31v9 with SN.ppt Our selection process has improved client advisor quality and productivity Best People CHF m

6 [t211887] [printed: Mai 23, 2006] [saved: Mai 23, 2006] R:\PRESENTATIONS\2006 Raoul Weil Presentations\investor's day \R Weil WMI for May 31v9 with SN.ppt WMI Client advisor & other staff leavers Despite an aggressive competitive environment, the proportion of regretted leavers has remained low 10 Best People 9 0.6% 0.4% 8 % % 2.2% 4.3% 2.3% Other Voluntary Regretted Voluntary Non Regretted Forced % 1.9%

7 [t211887] [printed: Mai 23, 2006] [saved: Mai 23, 2006] R:\PRESENTATIONS\2006 Raoul Weil Presentations\investor's day \R Weil WMI for May 31v9 with SN.ppt WMI Client advisor compensation model Best People Salary Bonus Based on role profile Based on seniority 40-70% Based on performance 60 70% Financial KPIs 30 40% "living the integrated business model" 30-60% Compensation in Cash Shares Options Fringe benefits 6

8 [t211887] [printed: Mai 23, 2006] [saved: Mai 23, 2006] R:\PRESENTATIONS\2006 Raoul Weil Presentations\investor's day \R Weil WMI for May 31v9 with SN.ppt Best People WMI Education & development Leadership and management Group Leadership programs Desk Head Training Junior Talent programs WM Diploma Lead Offering (by segment) Mentoring Coaching (cascade & peer) Local regulatory KeyClient training Technical 7

9 [t211887] [printed: Mai 23, 2006] [saved: Mai 23, 2006] R:\PRESENTATIONS\2006 Raoul Weil Presentations\investor's day \R Weil WMI for May 31v9 with SN.ppt Best Process WMI Advisory approach Our competitive advantage 8

10 WMI Using best practices [t211887] [printed: Mai 23, 2006] [saved: Mai 23, 2006] R:\PRESENTATIONS\2006 Raoul Weil Presentations\investor's day \R Weil WMI for May 31v9 with SN.ppt Leverage top-performer practices to maximize business results Best Process Via segment specific Lead Offering 9

11 [t211887] [printed: Mai 23, 2006] [saved: Mai 23, 2006] R:\PRESENTATIONS\2006 Raoul Weil Presentations\investor's day \R Weil WMI for May 31v9 with SN.ppt WMI Delivering our brand promise to our clients Linking our global capabilities Best Process UBS Client Experience Using Best Practices Best Shift + Global Real Estate fund + Structured products Return + Alternative Investments + Stock/ bonds into funds Risk Lead Offering per Segment Key CorA HNW FIM Client Asset Management / Mandates Advisory Liability Management Life Cycle Management 10

12 WMI RoA ranges per client segment Best Products [t211887] [printed: Mai 23, 2006] [saved: Mai 23, 2006] R:\PRESENTATIONS\2006 Raoul Weil Presentations\investor's day \R Weil WMI for May 31v9 with SN.ppt WMI Average BPS Core Affluent High Net Worth KeyClients Financial Intermediaries 1. Q106 annualized 11

13 WMI & CH Improving gross margin [t211887] [printed: Mai 23, 2006] [saved: Mai 23, 2006] R:\PRESENTATIONS\2006 Raoul Weil Presentations\investor's day \R Weil WMI for May 31v9 with SN.ppt We have improved the stability of our revenues substantially Best Products Gross margin in bps (WMI & CH) Recurring Non-recurring 12

14 WMI & CH Improving gross margin Best Products [t211887] [printed: Mai 23, 2006] [saved: Mai 23, 2006] R:\PRESENTATIONS\2006 Raoul Weil Presentations\investor's day \R Weil WMI for May 31v9 with SN.ppt by shifting our clients' assets into value-adding products and services Invested assets by asset classes 2003 Non traditional asset classes External mutual funds 4% Equities 18% 7% Accounts / Money Markets / Fiduciaries 24% 2005 External mutual funds 8% Non traditional asset classes 16% Accounts / Money Markets / Fiduciaries 23% UBS mutual funds Bonds 27% Equities 18% Bonds 17% 20% UBS mutual funds 18% Total Assets WMI & CH: CHF 701bn Total Assets WMI & CH: CHF 982bn 13

15 [t211887] [printed: Mai 23, 2006] [saved: Mai 23, 2006] R:\PRESENTATIONS\2006 Raoul Weil Presentations\investor's day \R Weil WMI for May 31v9 with SN.ppt WMI & CH Discretionary solutions growth Discretionary asset growth outpaces overall asset growth Best Products 1' IA in CHF bn CAGR % CAGR % Discretionary CHF bn Client directed CHF bn 1 CAGR= Compound Annual Growth Rate ( ) 14

16 SECTION 2 Addressing the Markets

17 WMI Our global presence Our Markets [t211887] [printed: Mai 23, 2006] [saved: Mai 23, 2006] R:\PRESENTATIONS\2006 Raoul Weil Presentations\investor's day \R Weil WMI for May 31v9 with SN.ppt Montreal St. Helier Vancouver Calgary Toronto San Francisco New York Beverly Hills San Diego Phoenix Houston Coral Gables San Antonio Boca Raton McAllen Miami Mexico City Nassau Panama City Caracas Bogota Lima Santiago de Chile Buenos Aires Birmingham Brighton Bury St Edmunds Edinburgh London Manchester Newcastle Taunton Bordeaux Cannes Lille Lyon Marseille Nantes Paris Strasbourg Rio de Janeiro Sao Paulo Montevideo Punta del Este Switzerland Lisbon Bad Homburg Berlin Bielefeld Cologne Düsseldorf Frankfurt Hamburg Munich Stuttgart Luxembourg Brussels Antwerp Barcelona Madrid Marbella Sevilla Valencia Stockholm Moscow Prague Vienna Warsaw Monte Carlo Istanbul Athens Beijing Beirut Suzhou Tokyo Nicosia Tel Aviv Shanghai Osaka Bologna Cairo Abu Dhabi Guangzhou Fuzhou Brescia Taipei Florence Dubai Shenzen Mumbai Hong Kong Genoa Bangkok Milan Manama Kuala Lumpur Naples Singapore Padova Jakarta Rome Torino Johannesburg Sydney Melbourne 91 Booking Locations 27 UBS Representative Offices New locations since 2000 As of April 10,

18 WMI Assets by client domicile Total CHF 774bn as per Q1, 2006 Our Markets [t211887] [printed: Mai 23, 2006] [saved: Mai 23, 2006] R:\PRESENTATIONS\2006 Raoul Weil Presentations\investor's day \R Weil WMI for May 31v9 with SN.ppt Americas 18% Europe 55% APAC 16% Eastern Mediterranean, Middle East & Africa (EMMEA) 11% 17

19 WMI Our most important markets [t211887] [printed: Mai 23, 2006] [saved: Mai 23, 2006] R:\PRESENTATIONS\2006 Raoul Weil Presentations\investor's day \R Weil WMI for May 31v9 with SN.ppt 3 to 4% global market share: "From Beach Head to Leadership" Our Markets Market size 14% China Russia Growth p.a. 6% South Korea Netherlands India Mexico Belgium Austria Taiwan Brazil Spain France Italy Germany United States Canada Avg. growth rate 5.8% United Kingdom Switzerland 2% Japan Australia Established Domestic Presence Ability to capture market opportunity UBS Market share Planned Domestic presence Evaluation in progress 18

20 WMI Break even models [t211887] [printed: Mai 23, 2006] [saved: Mai 23, 2006] R:\PRESENTATIONS\2006 Raoul Weil Presentations\investor's day \R Weil WMI for May 31v9 with SN.ppt Business setups are aligned to market characteristics Our Markets Type Assets required Time to breakeven Example Light Setup CHF 2-3 bn years Austria Belgium Intermediate Setup CHF 5-8 bn 4 5 years Brazil Fully fledged Setup CHF bn 5 6 years Core 5 EU 19

21 WMI & CH Operational leverage [t211887] [printed: Mai 23, 2006] [saved: Mai 23, 2006] R:\PRESENTATIONS\2006 Raoul Weil Presentations\investor's day \R Weil WMI for May 31v9 with SN.ppt Investing in growth while reducing the cost / income ratio Our Markets Client Advisors FTEs 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1, % 63.0% 61.0% 59.0% 57.0% 55.0% 53.0% 51.0% 49.0% 47.0% C/I Ratio Q % Client Advisors WM CH Client Advisors Established Markets WMI Client Advisors Growth WMI Cost / Income Ratio figures have been restated to reflect structural changes in WMI 20

22 WMI Results Client Advisors [t211887] [printed: Mai 23, 2006] [saved: Mai 23, 2006] R:\PRESENTATIONS\2006 Raoul Weil Presentations\investor's day \R Weil WMI for May 31v9 with SN.ppt Net New Money Our Markets 4'000 CAGR 1 = 22% 75 CAGR 1 = 95% (FTE) 3'000 2'000 1'000 1'204 3'202 3'338 (CHFbn) Q Q06 Income Invested Assets (CHFm) 7'500 5'000 2'500 4'209 CAGR 1 = 9% 6'476 1'922 (CHFbn) CAGR 1 = 11% Q Q06 1.CAGR= Compound Annual Growth Rate ( ) figures have been restated to reflect structural changes in WMI 21

23 SECTION 3 Market Challenges

24 [t211887] [printed: Mai 23, 2006] [saved: Mai 23, 2006] R:\PRESENTATIONS\2006 Raoul Weil Presentations\investor's day \R Weil WMI for May 31v9 with SN.ppt WMI Global trends and industry hurdles Challenges Increasing Client Sophistication Better education, knowledge and transparency Need for "holistic" advice (after-tax optimization) Tightening Regulatory Framework Harmonization and creation of global standards High implementation and ongoing compliance costs Proliferation of Asset Classes Accelerated product and process innovation Open architecture Industry Consolidation Accelerating M&A activity Lack of business focus and / or sub critical mass 23

25 SECTION 4 Areas of Focus

26 [t211887] [printed: Mai 23, 2006] [saved: Mai 23, 2006] R:\PRESENTATIONS\2006 Raoul Weil Presentations\investor's day \R Weil WMI for May 31v9 with SN.ppt European Wealth Management Strategy Organic growth is combined with bolt on acquisitions providing a good strategic fit WMI Focus France Germany Italy Spain UK 'Light versions' Opportunistic add-on acquisition EWM Core Austria Belgium 25

27 [t211887] [printed: Mai 23, 2006] [saved: Mai 23, 2006] R:\PRESENTATIONS\2006 Raoul Weil Presentations\investor's day \R Weil WMI for May 31v9 with SN.ppt European Wealth Management Recent acquisitions WMI Focus Total acquired assets: CHF 50 bn EWMI acquired assets: CHF 24bn Etra SIM S.p.A Dresdner Latin America Dolfi Finance SAS Julius Bär North America Sauerborn Trust Amex Luxembourg Scott Goodman Harris Laing & Cruickshank Merrill Lynch (Germany) Lloyds (France) Bank of Amercia (Int. PB) Standard Chartered (Int. PB) UBS Wealth Management

28 WMI Asia Pacific strategy [t211887] [printed: Mai 23, 2006] [saved: Mai 23, 2006] R:\PRESENTATIONS\2006 Raoul Weil Presentations\investor's day \R Weil WMI for May 31v9 with SN.ppt Organic growth in the core domestic and international markets combined with acquisitions WMI Focus Hong Kong Singapore Opportunistic add-on acquisitions Domestic Expansion Regional Hubs Australia China Japan Taiwan India (planned) South Korea (evaluation) 27

29 [t211887] [printed: Mai 23, 2006] [saved: Mai 23, 2006] R:\PRESENTATIONS\2006 Raoul Weil Presentations\investor's day \R Weil WMI for May 31v9 with SN.ppt WMI Asia Pacific presence & results WMI Focus UBS' Asia Pacific WM Locations Invested Assets CHF bn CAGR 1 = 16.6% Q106 Client Advisors 600 CAGR 1 = 28.4% Onshore Branches 400 Japan (Tokyo & Osaka) China (Beijing) + 6 in Joint Venture Taiwan (Taipei) Hong Kong (on- and offshore) Singapore (on- and offshore) Australia (Sydney & Melbourne) FTE Q106 1 CAGR= Compound Annual Growth Rate ( ) 28

30 [t211887] [printed: Mai 23, 2006] [saved: Mai 23, 2006] R:\PRESENTATIONS\2006 Raoul Weil Presentations\investor's day \R Weil WMI for May 31v9 with SN.ppt WMI Asia Pacific market opportunities All major markets in APAC covered or about to be covered 100% 57.7% WMI Focus Offshore Onshore 10.6% 6.6% 6.3% 4.5% 3.5% 3.2% 7.5% Total APAC Japan Taiwan Hong Kong China (excl. HK) South Korea Australia India Rest of APAC Domestic Presence evaluation planned 29

31 SECTION 5 Wealth Management Vision 2010

32 [t211887] [printed: Mai 23, 2006] [saved: Mai 23, 2006] R:\PRESENTATIONS\2006 Raoul Weil Presentations\investor's day \R Weil WMI for May 31v9 with SN.ppt WMI Growth initiatives by regions 2010 Vision 2010 Americas Focus on UHNW individuals Establishment of a holistic WM Product Offering Europe Maintain growth momentum in the European WM Business Achieve home status in 5 EWM Core Markets with significant profit contribution APAC Accelerate the WM Asia Pacific Growth initiative 31

33 WMI Way forward Vision 2010 [t211887] [printed: Mai 23, 2006] [saved: Mai 23, 2006] R:\PRESENTATIONS\2006 Raoul Weil Presentations\investor's day \R Weil WMI for May 31v9 with SN.ppt Best People "UBS Client Experience" Best Processes Best Products Global Expansion / Leverage One Firm / Stringent Cost Discipline 32

34 Questions [t211887] [printed: Mai 23, 2006] [saved: Mai 23, 2006] R:\PRESENTATIONS\2006 Raoul Weil Presentations\investor's day \R Weil WMI for May 31v9 with SN.ppt 33