UBS Investor Day 2004UBS Investment Bank: Delivering Success

John Costas, Chairman and CEO

UBS Investment Bank success to dateSECTION 1

1

2

Our winning strategyUBS Investment Bank is fully committed to pursuing ourstrategy

To be the global leader and the most profitable

service provider for corporate clients,

institutional investors and intermediaries and

the leading diversified risk manager

3

Leveraging group capabilities

InvestmentBank

WealthManagement

AssetManagement

Swiss BusinessBanking

We are delivering value through the business strength ofeach of the business groups and our integrated model…

Benefits ofintegrated model

- management effectiveness- client marketing coordination

- risk culture- product development

- shared services- shared expertise

- one firm

4

execution

spee

d

and

quality

of

Client Focus… to fully satisfy the increasing convergence of our clients’needs

Access tocapital

Electronicconnectivity

Clientspecificsolutions

Full rangeof services

InstitutionalclientsCorporate

clients

HNW privateclientsIntermediaries

Building on competitive strengthsSECTION 2

5

6

Our execution advantagesOur success is not driven by any one productor region, but is based on the ability to delivera full-service capability globally

InvestmentBanking

FixedIncome, Rates and

Currencies

EquitiesGlobal

Institutionaland

CorporateFranchises

LeadingEdgeTechno-

logy

Best-in-ClassResource

Management

IndustryLeading

RiskManage-

ment

DiversifiedBusiness

Mix

TopQualityTalent

OurFranchises

Techno-logy

ResourceMgmt

RiskMgmt

Business Mix

TopTalent

7

OurFranchises

Techno-logy

ResourceMgmt

RiskMgmt

Business Mix

TopTalentTop quality talent globally

Our 16,000 employees are aligned with clients'needs around the world

TopTalent

UK

USSwitzerland

Japan

Hong Kong

Australia

CanadaGermany

Russia

Local Trading Locations

Global Trading Locations

Sales / Sales Trading / Research

Mexico

BrazilSingapore

Korea

Taiwan

ArgentinaSouth Africa

France

Spain Italy

ScandinaviaNetherlands

Portugal

Israel

New Zealand

India

China

IndonesiaPhilippines

Chile

8

Europe

Strategic hires over the past 3 yearsWe have made a significant number of keyhires across sectors, regions and productareas since 2001, which has filled out ourcapabilities

Global heads within Investment Banking

Americas

EMEA Joint Head — Jeff McDermottEquity Finance – Alex EhrlichFrance — Pierre ParisItaly — Alessandro FotiSpain — Francisco Sanchez-AsiainFinancial Sponsors — Steve ConwayFIG - William WaldegraveM&A — James NeissaSwitzerland — Martin Kesselring

Joint Head IBD — Ken MoelisTMT — Jeff SineECMG — Thomas FoxM&A Americas — Cary KochmanReal Estate — Jackson HsiehChemicals — David BradleyEnergy — Stephen TrauberFIG — Michael Martin

Banks - Oliver SarkozyInsurance – A. Przygoda-Aleksander

APAC

Taiwan – Felice ChenEquity Finance – Masataka Iwata

OurFranchises

Techno-logy

ResourceMgmt

RiskMgmt

Business Mix

TopTalent

TopTalent

9

Revenue by productThe UBS-IB portfolio is one of the most balancedof our peers

OurFranchises

Techno-logy

ResourceMgmt

RiskMgmt

Business Mix

TopTalent

Business Mix

Revenue splits 1Q04 (USDm)

GS0

1,500

3,000

4,500

Citi - IB UBS IB DB MS JPM CSFB MER LEH

Source: Quarterly reports, UBS IB Analysis, PSRNote: * Equities and FI include institutional revenues only. IBD includes gross corporate revenues only

Equities* FI* IBD*

10

Source: UBS IB disclosed financials (excluding Private Equity), 1999 (full year), 2003 (full year)Note: Bubble size shows relative size of revenue in USD.

Balanced and diversified business mixWe have shown that we can build significantcapabilities in all businesses to capturechanging market opportunities

1999

FIRCIB

FIRC

IB

FIRC

IB

Equities

Equities

Equities

OurFranchises

Techno-logy

ResourceMgmt

RiskMgmt

Business Mix

TopTalent

Business Mix

IB

FIRC

FIRC

IB

FIRCIB

2003

Equities

Equities

Equities

11

Excellence in risk management has resulted insuperior and consistent credit risk results

Superior credit risk resultsOur

FranchisesTechno-logy

ResourceMgmt

RiskMgmt

Business Mix

TopTalent

RiskMgmt

Actual credit loss expense (USD m)

Notes: Annual Reports 2003: Citi (Net Corporate credit losses), DB (data for the whole group), CS – CSFB segment data fornet write-offs, JPMorgan Chase – Commercial segment net charge-offs.

(500)

500

1,500

2,500

DB CSFB Citi JPM Chase UBS IB

2002 2003

12

We focus on creating a diverse portfolio ofrisk/return businesses that does not excludeopportunistic risk-taking or strategic investment

Dynamic capital allocationOur

FranchisesTechno-logy

ResourceMgmt

RiskMgmt

Business Mix

TopTalent

RiskMgmt

Risk

Strategic importance

25%

15%

Core clientbusiness

PF

Relationshiplending

Return

CRE

Customisedresearch

EquityProp

13

Commitment to relationship lendingWe have significantly reduced our lendingexposure, but maintain a commitment to coreclients

OurFranchises

Techno-logy

ResourceMgmt

RiskMgmt

Business Mix

TopTalent

ResourceMgmt

We lead with our advisory and execution skillsand not with our balance sheet

Total Loan Book (Less Underwriting) Core Loan Book

0

10

20

30

40

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2001 2002 2003 2004

(USD bn)

14

Best-in-class resource managementUBS Investment Bank has one of the mostconsistent cost / income ratios among peers

OurFranchises

Techno-logy

ResourceMgmt

RiskMgmt

Business Mix

TopTalent

ResourceMgmt

Cost / income

Source: Quarterly reports, UBS IB Analysis.Note: *UBS IB ratio is based on Total Operating Income before expected credit loss. UBS IB figures exclude Private Equity.

50%

70%

90%

110%

130%

150%

170%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

Citi (CIB) CSFB DB GS JPMC

LEH ML (GMI) MS (IS)

2002 2003 2004

UBS IB*

15

Cost efficiency - operations

2001 2002 2003 2004

Quarterly fully loaded costs (USD m)

0

10

20

30

40

50Securities Other

Quarterly volumes (m)

OurFranchises

Techno-logy

ResourceMgmt

RiskMgmt

Business Mix

TopTalent

ResourceMgmt

We have maintained stable costs whilst ourprocessed volumes continued to rise, reaching620,000 per day

16

UBS-IB leading edge technologyOur e-platform has delivered greater efficiencyand increased client connectivity for our FXbusiness and is transforming our securitiesbusinesses

Built marketleading FX STP andrisk mgt capability

2001

Jul-00 Feb-01 Sep-01

0%

15%

40%

65%

Dec-01

Source: UBS IB Analysis

OurFranchises

Techno-logy

ResourceMgmt

RiskMgmt

Business Mix

TopTalent

Techno-logy

2003

Jan-03 May-03 Sep-03 Mar-04

Buildingcash equity

electroniccapability

e-ratio UBS-IB

2002

Re-engineeredFX F2B process

globally

Jan-02 Apr-02 Aug-02 Dec-02

0%

15%

40%

65%

10%

20%

30%

40%

50%

17

LeadingEdgeTechno-

logy

Best-in-ClassResource

Management

IndustryLeading

RiskManage-

ment

DiversifiedBusiness

Mix

TopQualityTalent

GlobalInstitutional

andCorporateFranchises

Our franchises

18

While our corporate franchise is growing, the bulk of ourbusiness is still generated by our institutional franchise

Our franchises

Corporatefranchise

20%

2003 revenues (USD)

Institutionalfranchise

80%

Source: UBS internal analysis, Corporate franchise includes 100% primary share

FIRC(50%)

Equities(30%)

19

UB

S IB

po

siti

on

ing

Mar

ket

tren

d

Equity business strategic focusEquity related businesses are strong and gaining momentum

Increase inHedge fund

business

Underwritingvolume down

4%(May’04 Thomson Fin)

Improving tradingvolumes and

increase in programtrading

Top 4 GlobalEquity

Underwriting(Thomson Financial)

ABN AMROPrime

BrokerageAcquisition

#1 in GlobalEquity Research

(Institutional Investor)

#1 GlobalSecondary Cash

Equities(Leading Industry Survey)

ClientProfitability

EquityFinanceTechnology

enabledBusiness

Focus

20

UB

S IB

po

siti

on

ing

Mar

ket

tren

d

Focus

IBD strategic focusIBD environment is positioned for increased activity in 2004

US MarketSelectiveEmergingMarketsLeverage

GlobalPlatform

Largest USmarket share

growth(Freeman)

Largest bankoutside the US(5.1% m.share)

(Freeman)

Top 5 Globalfee poolposition

(Freeman)

CompletedM&A volumes

are down

US marketremains

dominantOverall environment

is favorable

21

UB

S IB

po

siti

on

ing

Mar

ket

tren

d

FIRC Strategic FocusDebt trading and underwriting still offer real opportunities

Top 3 inDerivatives

GreaterPresence in EM

Top 3 inEurope

#1 FX Bankwith 12.4%

market share(Euromoney)

#1 Global EMand Asian Bond

House(IFR)

Top 3 US FISales andTrading

(Institutional Investor)

Favorablemonetary

policy

Credit spreadsare widening

Moderate increasesin interest rates

Focus

A winning growth strategySECTION 3

22

23

Delivering success via organic growth

1999

IRDerivatives

IRDerivatives

FXFX

CCTCCT

Gov’t BondsGov’t Bonds InvestmentGrade

InvestmentGrade

EmergingMarkets

EmergingMarkets

US EquitiesUS Equities

EuropeanEquities

EuropeanEquities

AsianEquitiesAsian

EquitiesEquity

DerivativesEquity

Derivatives

ECMGECMG

DCMGDCMG

BankingProductsBankingProducts ETDETD

M&AM&A

CBOsCBOs

High YieldHigh Yield

2000PrincipalFinance

PrincipalFinance

CreditDerivatives

CreditDerivatives

HealthcareTeam

HealthcareTeam

LeveragedFinance

LeveragedFinance

2001

Mortgage-Backed

Securities

Mortgage-Backed

Securities

PrimeBrokerage

PrimeBrokerage

CommercialReal Estate

Trading

CommercialReal Estate

Trading

Media TeamMedia Team RestructuringTeam

RestructuringTeam

2002

WholeLoansWholeLoans

ETDCommodities

EnergyTradingEnergyTrading

BankingTeam

BankingTeam

EnergyTeam

EnergyTeam

Asset basedlending

Asset basedlending

2003

CDOsCDOs

USInsurance

Team

USInsurance

Team

LiabilityManagement

LiabilityManagement

PrimeBrokerage

(ABN)

PrimeBrokerage

(ABN)

We will continue to grow our business and business mix , asmarkets evolve and opportunities arise

24

InnovationTeamwork Drive

Leadership Diversity Integrityand Trust

Success is built around strong shared values and a culturethat actively reinforces them

Our winning culture

We succeed if ourclients succeed