ubs - core affluent convention (2006)

WMI - Core Affluent Convention 2006Spirit, Pride and Joy

Welcome!

ab

Introduction

Core Affluent Spirit, Pride and Joy

Raoul WeilHead Wealth Management International

CorA HNWI KC

54

101

155

You work in the most profitable segment in WMI

Segment comparison RoA (bps)

Distribution of IA in CHF

CorA HNWI KC

54

101

155

You work in the most profitable segment in WMI

We can grow and we will grow with the Core Affluent segment in WMI.

Segment comparison RoA (bps)

WMI World

1230

42

50

46

20

773 bn 46'117 bn

+ = up to CHF 2.5 bn revenue potential

WMI Think client, grow commercially

Client focus UBS Client Experience Lead Offering per Segment Client defection

management

Growth Best shift Prospecting Share of wallet

Talent Using Best Practice Recruiting and Integration CA Certification per

segment Desk Head Training Program

Efficiency Sales Management Process Using Best Practice Tool Usage

ProfitabilityQuality

Client Experience drives growth!

The Spirit, Pride and Joy of WMI Core Affluent

Client Focus

Client Focus Think client

Jrg ZeltnerCEO Germany Domestic

Think client, grow commercially.

Raoul Weil

Client focus in our lead offering:

Our offering is always integrated into the UBS Client Experience

Mandate and Advisory Solutions

Liability Management

Life Cycle Management

Client Retention Index: help the CA identify clients at risk of defecting.

Gary Wai Bong Chang, Tokyo

Client Focus

The special spirit of our segment:

The most profitable segment within WMI

The highest RoA in our segment

We generate substantial revenues

Our client base forms the major part of WMI clients

Spirit, Pride and Joy!

Client Focus

Client Focus Living the Value Proposition

Karl SchwarzSegment Head Core Affluent BU BGC

Our job, a source of pride and joy!

Because we do not focus on us, but on our clients.

The WMI Core Affluent Value Proposition

Bank Client Advisor Client

Bank's perspective- ideal positioning of segment- maximizes revenues- information delivery streamlined


Client Advisor's perspective- allow excellence at job,- fulfill high ambitions, and- deliver top quality solutions to their clients



Client's perspective- segment specific benefits of UBS Client

Experience- image of strong and trustworthy partner- providing security and peace of mind


Client Advisor Work BenchProducts and ServicesProspect/Pipeline ManagementReportingCommunicationTraining


It's not only about tools, processes and training...

...it's a new philosophy!

Double client time.

Make sure we will be there at the right moment.

The Value Proposition is US ...

... WE are the Value Proposition!

Proud of working in the most successful, most challenging segment.

Focus on clients, and watch the revenues rise.


Coffee Break

ab

Growth

Growth Where are the millionaires?

Michel GuignardRMM North America

If you are looking for small potatoes ...... you will get small potatoes.

Vision and Ambitions Millionaires BU Americas

Team Millionaires LATAM- Vision: Our goal is to rank among the top 3 banks for Millionaires in each market by the end of 2008

- We want to grow and develop our clients and build up a stable source of money inflow by improving client satisfaction and increasing contact intensity

Team Millionaires NAM- Growth of invested assets of 1% p.a. (Mio NAM)- Stabilize client base and increase efficiency in service and acquisition- Foster innovation where the skills and diversity of our employees are fully leveraged and where creative ideas are pursued

50

100

150

200

NNM RoA

168

33

168

15

NNM and RoA Ambition

50

100

150

200

NNM RoA

137104

129143

NAM US Intl. MillionairesLATAM Millionaires

Actual/Ambition

RoA: -6%NNM: +38%

ActualAmbition

Actual/Ambition

RoA: 0%NNM: -54%

0.5

1.0

1.5

2.0

2.5

3.0

JAN 06 FEB 06 MAR 06 APR 06

0.90.71.31.10.5

1.0

1.5

2.0

2.5

3.0


0.5

1.0

1.5

2.0

2.5

3.0


2.7

1.10.81.10.5

1.0

1.5

2.0

2.5

3.0


NNM/CA and RoA


NNM/CA

RoA

180

140

100

60

20

180

140

100

60

20

65% of CA are NNM-positive 40% of CA are NNM-positive

500

1'000

1'500

2'000

2'500

3'000

3'500


2'8362'8052'7182'681

500

1'000

1'500

2'000

2'500

3'000

3'500


2'9952'8822'6902'622

Mandate Count


Avg Monthly Growth Rate 06

absolute: +124 relative: +5%Discretionary Share: 23%

Mandates

Avg Monthly Growth Rate 06

absolute: +52 relative: +2%Discretionary Share: 58%

Initiatives and projects for growth

Referrals (Roland Eduah)

Segment-Mover Concept (Marcel Tschanz)

Potential Project (Michel Guignard)

Regionalization (MS MAP-point)

Telephone Campaigns (UBP)

Video Training (UBP, Role Play)

Multi-Channel Direct Marketing

Potential project

In search of the big potatoes

Potential project: the concept

search contact refer

KYC Center Team

- analyze- assess- assign

Client Relationship Facilitator

- one call- one chance- one shot

WMISFAWM US

Thorough organization and structured processes

US KYC Profiler

- 2-3 full time researchers- high diversity background

Talented Profiler Search Team

Structured Processes Access to internal and external databases

KYC Center and Client Relationship Facilitator

KYC Center (Kick-off: April 2005)

Scope of activities to date:- 21'725 name accounts to be reviewed- 12'600 named accounts assessed:

- 210 high potential prospects- 2'500 interesting potential prospects

Client Relationship Facilitator (Kick-off: April 2005)

- 170 files transferred- 115 successful client contacts (68% hit ratio)- 73 appointments (61% hit ratio)- 15% of contacts not interested to pursue

Recent success stories

Client Relationship Facilitator (one HC since 3 months) CHF 5 m NNM (MFP) Referral to WM US with potential of USD 5 m RFP for CHF 5 m fixed income mandate (high probability)

12 accounts referred to KC-Advisor 37 accounts referred to HNW-Advisors

USD 500 m IPO with potential KC-business of Swiss based US oil and gas bunkering company

Go for big potatoes!

We are dealing with millionaires!

Growth

Growth Team up with your partners

Marcel TschanzSegment Head Latin America

Partners to success

Client development and prospect allocation are not independent from each other but based on the same understanding of a segmented value proposition

Partners A

broadBooking Center

Affluent Core Affluent HNW KC

Acquisition

Prospect Allocation

Client Development

Clear rules and guidelines Consistent target setting

Client potential development

Growth by identification and development of client potential in a true partnership approach

CorA CA

Service Intensity

Identification Development

Development Take OverHNWI

up to 6 months 12 months

DistinctService Level

teaming up between CorA and HNWI CA

The Desk Head moulds the way

One identical message from all levels of management The segment mover approach as a clear and measurable part of the PMM Complete the segment specific sales set-up with platforms to exchange

across segments Important: establish plans and continuously coach and manage the

personal development of all client advisors and assistants

and foremost: Walk the Talk team up and frequently exchange with DHs of the other segments

foster the built-up of teams amongst the client advisors

Pro-actively manage the segment mover approach

Growth

Growth Living the referral culture

Roland EduahSegment Head US

Referral culture needs team approach

Microsoft Corporation 1978 Would you have invested in this team?

The prerequisite

CorA HNWI 1 & 2 - Key Clients - FIM

83%

17%

Percentage of WMI assets

53%47%

Percentage of WMI clients

73%

27%

Percentage of WMI revenues

Leveraging the client base: types of referrall

86% of clients would have referred relatives would they have been asked

Question requires diplomacy and sen-sitivity (selling the whole organization)

Find the right partner to refer the client to

Referral agreements

The external referral The internal referral

Think about the way you contribute to growth...

The external referral- Do I know how to identify which client I could ask for a referral ?- Do I know how to ask for it ?- Do I know where and whom a prospect can be referred to ?

The internal referral- Do I know where and whom in the organization a client can be referred to ?- What's in for me if I play as a team player ?- Do I know what needs to be ensured for me to be allowed to refer a client across organizational boundaries ?

- Do I ensure a smooth transition whenever the client grows over my head ?

The dynamics of CorA

ServiceExcellence

Happy Client Referral

New Client ServiceExcellenceHappy Client Referral New Client

Service Excellence

Happy Client Referral New Client

Service Excellence

Happy Client

Service Excellence

Happy Client Referral New Client

Happy Client

Service ExcellenceReferral New Client

Service ExcellenceReferral New Client

Happy Client Referral

New Client

Growth

Workshop on Growth in Assets

ab

Establishing a platform of constant exchange of UBPs

Set up:- One prominent moderator per group- Eight to nine participants- Group members come from same location/ region- Symbol on the Badge shows ones group

Time Line:- 45 minutes workshop- 15 minutes presentation of results (3 presenting groups chosen at random)

Ambition:- Identify Key Success Factors- Set clear actions/ action plans within each group

Exchange of best practices and think tank for fresh ideas across BUs

Groups stay together and meet on a regular basis in their locations


Lunch Break

ab

Efficiency

Efficiency You & Us

Dieter KieferBU Head Western Europe

Improve Client Focus

Trigger Growth

Efficiency

Double Client Time

Spend more time with clients

Focus beyond current client book: Pipeline management

Efficiency generates growth

UBS Client Experience: understand better what clients really want

Lead Offering: Strong offering that can be easily adapted

Efficiency:

Achieve individual growth ambitions

Achieve bank's target to grow

Improve individual work-life balance

More time spent on and with clients: increase the joy felt in our work.

Challenged to continuosly look for ways to improve.

Efficiency is a process, an evolution, in which your input is absolutely necessary!

Our vision: relationships on muliple levels:

Over the phone

Over the internet

Through meetings, both in our offices and on location

From CorA Line to UBS Access Line

Serve whole Core Affluent client base by the end of 2007

To become a Client Book Management Centre

Take care of standardised tasks to free CA time for personalised contacts

Three future developments

Centre for incoming and outbound calls on your behalf

Access Line as a training ground for Client Advisors

High-end connection from CAWB to clients: e-mail, video, voice over IP

We are looking at a future in which spending less time on administrative work and more on our clients will be a reality.

Efficiency

Efficiency You & Us

Daniel LippSegment Head Western Europe

Initiatives of our CorA segment:

ACT

CRI

CorA Line/UBS Access Line

UBS Access Line WMI

Pilot start April 2005

Main objective when pilot started- facilitate client contact with bank through an alternative channel- relieve CA of non-productive inbound calls- provide top quality telephone service

Main results- positive impact on client time x 2- better KPIs (NNM, DMS, AMS, client retention)- client satisfaction

Efficiency

UBS Access Line WMI

Where we are going from here:- CorA Line becoming UBS Access Line WMI

- from pilot to business entity

- from 17 to 60 CAs hooked up

- from 7000 to > 20'000 clients

- from 5 to 15 call agents

- rollout: Starting 2006

UBS Access Line WMI

ConsequencesMajor implications in terms of:- security- logistics- HR & Education- service

UBS Access Line: front runner for new technology

Efficiency

Efficiency Triple Jump 2006

CorA Competition Q3/Q4 2006

Overall Objective

Introduce new CorA philosophy Spirit, Pride & Joy and boost Growth in Revenues & Growth in Assets

Foster segment specific community spirit Entrepreneurial spirit and teamwork will characterize

the best teams

An exclusive CorA competition creates pride

Live this new dynamic philosophy Prizes for the whole desk Team Spirit and Joy at work

Spirit

Pride

Joy

Growth- in revenues- in assets

Structure and its objective

Be growth oriented and keep everybody on board until the end

3 July 2006: Kick-off One common Kick-off, three different endings

Jump 1

Jump 2

Jump 3

Investment Funds and A&Q

Mandate Solutions

Net New Money (market adjusted)

July August September October November December January

Prizes - CorA Triple Jump


Jump 1 Investment Funds and A&Q

Aim Increase activity in the quiet summer months

Focus Lead Offering Funds and A&Q

Why IF Best Shift, Introduction of the WMI Investment

Fund Lead Offering and new NTAC Offering

Duration 2 months (July and August)

Reward 3 days Alinghi Sailing Academy in Valencia for the winning team IF

and 3 top-performers A&Q



Aim Best shift, higher RoA and increased efficiency in CorA

Why Focus on the most important CorA products

Duration 4 months (July to October)

Reward will be announced in September

Jump 2 Mandate Solutions (Mandates, AAF & ARF)



Aim Effective client book management and reduction of client defections

Why medium and long term goal of UBS

Duration 6 months (July to December)

Reward will be announced in November

Jump 3 Net New Money (market adjusted)

Measurement Investment Funds

Team performance brings the whole desk to Valencia

For investment funds campaign Funds ex AAF & ARF % MMF will be measuredThe current penetration plus increase in penetration will be measured

Measurement A&Q

Individual top-performance will also be rewarded

Three A&Q top sellers (Syros subscriptions)

Ticket to Valencia

The three CAs with the highest A&Q volume until 1 September 2006 win

Measurement Mandate Solutions

Fair, transparent, on a monthly basis

Tracking tool: White Spot Analysis

For mandate solutions campaign Total Mandates and AAF & ARF will be measuredTeams can follow their own performance based on White Spot

Fairness

Based on the successful Triathlon competition (BC Germany) we grant:

10 points for every 1% of existing penetration + 100 points for every 1% increase in penetration

The team with the most points at the end of each Jump wins!

Measurement investment funds and mandate solutions

Fairness and transparency, the core of the competition

Transparency

Ranking is updated monthly together with the White Spot Report

15 Top teams displayed on the CorA page (monthly)

Rankings and results of the remaining teams will be given on the request of the DH

Measurement NNM

Fair, transparent, on a monthly basis

NNM figures will be adjusted regarding to market clusters: Established, Growth (Europe), Growth (rest of the world), Start-up

Cluster multiplierNNM figures team

Adjusted points for NNM


Coffee Break

ab

Talent

Talent The Italian Experience

Francesco MorraBU Head Italy

CorA Italy: large, growing market of 1.7 m HHs, 460 bn assets

~7.5%

Segment Clients (Households)

CorA ~1'700'000

Ultra-HNW

HNW

Mass Affluent/Retail

Onshore assets ( bn)

~460

~50% of relevant wealth

Growth (05-08 CAGR)

~7.5%

Solid growth

Lead Offering

Talent development key for successful business in Italy

Savings

Financing

Wealth Accumulationand Preservation

Wealth Protectionand Transfer

Required Skills Set


Client Screening Capability

- Existing Clients

Direct Calling Capability

- Prospects

Cooperation Capability with Multipliers

- Prospects


Planned locations

Current locations

Planned locations

Current locations

Jump to attractive new areasExpand around big centersand current locations

(1) 2 additional locations to be added in 2011 to reach the 20 branches target

Contribution of CorA business always positive

2005 2010 2005-10

Number of branches 9 18 2x

IA 2.6 7.4 2.8x

Number of CAs (average) 53 162 3.1x

NNM per CA ( mio.) 5.4 9.3 1.7xRoA (bps) 113 146 1.3x

Net revenues ( mio.) 24.4 103.4 4.2x

1

Guiding principles

CorA a natural entry point

CorA CA career path attractive

Support and professional development of CorA CAs

- Teaming - Training

Certifications- WM Diploma - TSR

CorA leadership culture

TeamingModel Training

Compen-sation

Development path

CorA CA career model

Entry

Selection

UBS CorA CA career and talent model

CorA CAs with clear development path at UBS

Prerequisite skills

- HNW HNW / Market Mgmt. / Functions(1)

HNW / KC /Functions(1)

HNW / KC Career options:Change to

Ready to team with and coach junior CAs

Experience Large client

book

Lead a team/desk None/very limited

Ability to acquire clients autonomously

CA WM 1('Junior CA')

Senior CA WM 1DH

For 1 - 2 yrs

After 6 8 yrsAfter 6 8 yrs

For 2 4 yrsFor 2 4 yrs

CA WM 2CA WM 3

UBS CorA development plan

(1) e.g. P&S, Operations, Sales Management

Teaming Model: Objectives and planned approach

CA teaming within desk

Experienced Junior

CoachSupports junior CA for success

New CALearns from experienced CA's, but is not his/her assistant

CA training program aligned with career step first outline

Mandatory training Need based ad-hoc training

Banking skills

Leadership skills

Training element Training offering per career step

New joinersprogram

Individualized training (ad-hoc)

New product introduction / IT tool training

CA WM 1('Junior CA') Senior CA WM 1 DHCA WM 2 CA WM 3

New DH programCoach/mentor program

Personaldevelop-ment

Seniority

FinancialIntermediaryPreparation

Client service and acquisition proficiency

Client service/ acquisition skills

Certifications

UBS views all its employees as its talent.

We want to grow as an organisation and to do this we need to have the best talent.

Raoul Weil

Attract, develop and retain the best and brightest people for CorA.

Attract

Develop

Retain

Talent

Talent You & Us

Nicla PedrazzettiSegment Head Italy

It all begins with my own people, my colleagues - with us.

We have to be convinced of what we do and why we are doing it.

The basis of CorA from my point of view:

Efficiency

Openness to new ideas

Innovation

Empowerment

It all begins with YOU.

Carry the pride you feel to your people.

Not every CA is an entrepreneur, but it's our job to coach them to become one!

How can we make our CAs live Spirit, Pride and Joy in their daily work, in front of their clients and in their private lives?

Workshop on Talent

Italy CorA: No Performing CAs (evolution)

-200'000

-100'000

0

100'000

200'000

300'000

400'000

500'000

20042005

NN

M c

umul

ated

CAs

10 20 30 40 50 60 70 80 90

Talent Attraction: Workshop TemplateMain Issues Key Success Factors Actions

How can we improve our entrepreneurial spirit

How can we bring pride to our CorA sales force?

What can we do to have our sales force

having joy in daily business?

Topic

Spirit

Pride

Joy

Conclusion

Conclusions

Raoul WeilHead Wealth Management International


Good Bye!

ab

ubs - core affluent convention (2006)

Documents

core affluent segment

wmi core affluent convention

profitable segment

challenging segment

ubs client experiencemandate

double client time

wmi clientsspirit

source of pride