First-quarter 1999 Results

UBS Investor Presentation

1

UBS visionHighly p rofitable global financial institu tion p ositioned as leadingA sset G athering Hou se in Eu rop e and leading Universal bankin Sw itzerland

♦ Uniq u e bu siness m ix - asset gathering and advisory,private banking and institutional asset management

♦ Drawing on cap acity of divisions:— Private Banking offshore and onshore, especially in

domestic Europe— standardized asset gathering products in Private and

Corporate Clients— leading institutional asset management capability

(UBS Brinson)— Investment Banking - client focus, risk management, financial services

provider— Private Equity - strength in Europe and US

♦ Major bet on Eu rop e

♦ Commitment to substantial technology investment

2

Integrated business modelIntegrated m odel focu sed on clients and standard p rocesses

Private clients

Institutional clients

Distributionchannels

Distributionchannels Consultants

Rese

arch

,sa

les

and

trad

ing

CorporateFinance

UBS

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External assetmanagers

Branchnetwork

ClientRelations

PrivateBanking

WarburgDillonRead

Brinson

Stan

dard

ized

re

quir

emen

tsCo

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ates

,Fi

nanc

ial

Inst

itut

ions

and

Sove

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Customized

needsInstitutionalinvestors

UBSCapital

Private & Corp. Clients

3

Cross-divisional synergiesC ross-divisional revenu es C HF 3 .0 billionC ost-sharing C HF 2 .8 billion

Warburg Dillon Read

Private &Corporate Clients

UBS Brinson

UBS Capital

PrivateBanking

Foreign ExchangeSecurities: - primary - secondaryTreasury productsCorporate FinanceInvestment funds

Loan products Insurance productsStandardized products

Asset management

Equity capital

Investment funds Fiduciary deposits

4

Aspirations and 2002 targets

♦ Clear leadership aspiration

♦ Demanding financial targets

Return on equity 15% - 20%

Earnings per share CHF 45

Cost/income ratio approx. 60%

Tier 1 ratio 8.5% - 9%

5

First-quarter 1999 Group Headline results

♦ Pre-tax profit CHF 2.1 billion (+19%). Net income CHF 1.6 billion(+21%). Basic EPS CHF 7.72 (+21%). Annualized return onequity 21.2%

♦ Operating income 3%. Operating expenses (3%)

— maintained, and in some cases enhanced, client franchise andrevenue-generating ability

♦ Merger on track

— over 50% of Swiss client data (1.4 million clients) transferredto common IT platform

— 76 branches of planned 150 closed

♦ Total assets under management CHF 1,639 billion (+4.3%)

♦ Tier 1 ratio 9.4% (vs. 9.8% in 1998), 1% Own Shares bought backby 22 April

6

Impact of special items

♦ First-quarter 1999 figures inclu de a C HF 90 m illion p ost-tax gain fromthe sale of Ju liu s B aer registered shares

♦ First-quarter 1999 figures exclu de proceeds from the sale of UBS’ stakein Sw iss Life / Rentenanstalt and G lobal Trade Finance

♦ B ank of A m erica’s international p rivate banking franchise wasacquired during the first quarter, but will be reflected in resu lts laterin the year

Notes:(1) Proceeds from BSI and Adler sale: CHF 1,058 million. Operating revenues and costs relating to disposals:

CHF 260 million and CHF 121 million respectively(2) Client transfers: Operating income CHF 625 million, operating PG&A costs CHF 283 million, depreciation and

amortisation CHF 34 million

♦ First-half 1998 figures for Private Banking include pre-tax C HF 1 ,1 97 billion(1) relating to divestm ents and pre-tax C HF 3 08 m illion(2) relating to client shift from P B to P C C

♦ First-half 1998 results include pre-tax C HF 544 m illion provision for theUS settlem ent

7

First-quarter 1999 UBS Group Results

3 1 .3 .1 998 % 3 1 .1 2 .1 998(CHF mn) change

Operating income 6,703 3% 22,328

Operating expenses 4,929 (3%) 18,258

Profit before tax 1,774 19% 4,070

Net profit 1,344 21% 3,030

3 1 .3 .1 999

6,918

4,804

2,114

1,621

8

Performance Indicators

03/99

21.2

ROE (%)(annualized)

03/98

17.7

12/98

10.3(1)

03/99

7.72

Basic EPS(CHF)

03/98

6.38

12/98

14.31(1)

03/98

70.6

03/99

66.5

Cost/income ratio(%)

12/98

78.4(1)

Note:(1) Full year

9

UBS merger integration updateD ivision Statu s P ersonnel Restr. P rov.

vs. end 1 998 1 Q 1 999(% ) (C HF m n)

Private Banking On track 3.6 11

Warburg Dillon Read Done (2.7) 223

Private and Corporate Clients On track 0.9 144

UBS Brinson Done (0.7) 4

UBS Capital Done (9.0) 6

Corporate Center Done (6.7) 1291 Q 1 999 G rou p Total O n track 0(1 ) 51 7

G rou p total 1 998 4,02 7Total usage to-date 4,544Total provision 7,000

Fu tu re u tilization 2 ,456

Note:(1) 1Q 1999 total increase of 20 employees since end of 1998 . Full-year 1998 employees total decreased

13%, or 7,165 employees relative to 1997

10

Year 2000 quantitative progress assessment for UBS (1)

P hase O rganisation p lans A ctu al statu s Forecast (as of 1 0/98) (as of 4/99) (as of 3 /99)

1 2 .98 1 .99 2 .99 3 .99 4.99 5.99 6 .99 1 2 .98 1 .99 2 .99 3 .99 4.99 4.99 5.99 6 .99 9.99

Note:(1) Mission critical systems

Developing a strategic approach 100 100

Creating organisationalawareness 100 100

Assessing actions anddeveloping detailedplans 99 99 100 98 98 99 100

Renovating systems,applications andequipment 95 98 99 99 99 100 87 89 93 96 98 98 99 100

Validating renovationthrough testing 88 92 93 96 98 99 100 68 72 76 85 89 91 97 99 100

Implementing tested,compliant systems 79 85 89 92 96 98 100 61 65 69 79 85 87 94 98 100

11

UBS Management Accounts1 Q 1 999 p re-tax p rofit

(C HF m n)

PrivateBanking

709

WarburgDillonRead

783

Private &Corporate

Clients

382

UBSBrinson

68

UBSCapital

48

CorporateCenter

124

Group

2,114

12

♦ 4% AuM growth despitedifficult conditions

♦ Client migration nearcompletion

♦ Purchase of Bank ofAmerica’s internationalprivate banking activitiesin Europe and Asia

♦ Good progress ondomestic business outsideSwitzerland

Private Banking

(C HF m n) 1 998(1)

Operating income 7,197

Operating expenses 2,861

Pre-tax profit 4,336

Net profit 3,599

AuM (CHF bn) 607

Cost/income ratio 46%(2)

1 Q 1 999

1,386

677

709

588

633

49%

Notes:(1) Including divestments: CHF 1,000 mn after-tax gain on sale;

CHF 268 mn operating income, CHF 125 mn operatingexpenses, CHF 119 mn after-tax impact

(2) Excluding BSI gain on sale

13

Integrated Wealth Management

Professional WealthManager

(Client Advisor)

Credit

CorporateFinance

PortfolioManagement

GlobalCustody

Art Banking

EstateAdvisory

TrustBusiness

FinancialPlanning

Real EstateManagement

14

E-banking products for Private Banking clients

UB S C onnect

Telebanking

UB S Q u otes

N ew P rodu ct

Internet

O p tim u sO nline

Research

P rodu ct B ooking C enter Lead/O w nershipP rivate B anking

P rivate & C orp orateC lients(coop eration)P rivate & C orp orateC lients(coop eration)P rivate & C orp orateC lients(coop eration)P rivate B anking

P rivate B anking

Target C lientsExternal A ssetM anagers

Self-directed

A ll (self-directed)

A fflu ent,P rivate B anking

P rivate B anking

P rivate B anking

P rivate B anking P rivate B anking A ctiveA dvisory Team

C hannel

Extranet

Internet (secu re)

Internet

Softw are, Extranet

Internet

Internet(p rotected)

Extranet

15

(CHF mn) 1998

Operating income 6,487

Operating expenses 7,508

Pre-tax profit (1,021)

Net profit (706)

Cost/income ratio 107%

Reg. equity used (ave.) 13.3 bn

♦ Strong results based on75% of both pre-mergerpersonnel and averageallocated regulatoryequity

♦ Risk appetite and capitalallocation now in linewith other leading globalinvestment banks

♦ 1998 refocusing led tohigh-quality earnings andclient-driven corebusinesses

♦ Successful introduction ofEuro and well-positionedfor Y2K

Warburg Dillon Read

1 Q 1 999

3,311

2,528

783

561

75%

10.7 bn

16

Clearly focused investment bank

♦ Narrowly-defined investmentbanking business at WDR:

— Treasury Products

— Equities and Fixed Income

— Corporate Finance

♦ Broader, asset gathering“investment bank” in UBSGroup:

— Private Banking

— Institutional AssetManagement, UBS Brinson

— Private Equity, UBS Capital

— Asset Gathering, UBS PB andUBS P&CC

♦ Integral to UBS AG:

— institutional andcorporate franchisemanager

— product provider toasset gatherers

— execution engine

— transaction processor

17

Leading investment bank: 1998 awardsC orp orate Finance M agazine

Top B anks of the Year:Investment Bank of the YearEquity-Linked House of the Year

D eals of the Year:Equity-Linked Deal of the YearEquity-Linked Offering of the YearEquity Offering (Privatisation) of the YearSyndicate Loan Deal of the YearBuyout of the Year

G lobal Investor

FX Su rvey:No.1 Best Advice on Spot TradingNo.1 Best Sales Coverage

International Financing Review A sia

Review of the Year:Australian Equity House of the YearAustralian Domestic Bond House of the Year

Eu rom oney

P oll of P olls:No.1 UnderwritingNo.1 TradingNo.1 Advisory

A w ards for Excellence:Best Eurobond Trading House (4th yr)Best Securities Firm in Western Europe (5th yr)Best Securities Firm in the UK (2nd yr)Best Securities Firm in Switzerland (4th yr)Best Foreign Securities Firm in US (2nd yr)

D eals of the Year:Best International Euro IssueBest Equity Linked IssueBest High Grade Corporate IssueBest IPOBest Financial Institution IssuesBest International Syndicated Loan

18

Private and Corporate Clients

(C HF m n) 1 998

Operating income 5,855

Operating expenses 4,947

Pre-tax profit 908

Net profit 754

AuM (CHF bn) 434

Cost/income ratio 70%

1 Q 1 999

1,624

1,242

382

313

461

65%

♦ Significant improvementin profitability

♦ Merger on track

— over 50% client data(1.4 million) trans-ferred to single ITplatform

— 76 of planned 150branches closed

♦ Very good progress inInternet banking

19

UBS Telebanking (Internet & Videotex)

120'000

140'000

160'000

Jan May Sept Jan May Sept Jan1 997 1 998 1 999

175'000

Mar

Total Telebanking users 178’000 42%Internet only (introduction Jan 98) 55’000

Number of stock exchange transactions 54’000Number of payments made 3.7 mn 21%

1 Q 1 999 vs. 1 Q 1 9981 Q 1 999 vs. 1 Q 1 9981 Q 1 999 vs. 1 Q 1 998

20

UBS Brinson

(C HF m n) 1 998

Operating income 1,163

Operating expenses 715

Pre-tax profit 448

Net profit 320

AuM (CHF bn) 531

Institutional assets 360

Investment funds 171

Cost/income ratio 61%

♦ Challenging first-quarter 1999— some expected loss of

revenue from merger— sale of Alfi Gestion— changes in interdivisional

pricing♦ 3% growth in AuM, driven

by investment funds♦ Brinson in line with

expectations— short-term under-

performance in U.S.equity portfolios

♦ Phillips & Drew under-performance in coreportfolios

1 Q 1 999

263

195

68

49

545

364

181

74%

21

♦ Performance in line withexpectations

♦ Completed several smallsuccessful exits

♦ Revenues are dealdependent - quarterlycomparison lessmeaningful

♦ Current portfolio’s agingprofile will offer fewerdivestment opportunitiesin 1999

♦ Portfolio growing in linewith expectations

UBS Capital

(C HF m n) 1 998

Operating income 585

Operating expenses 157

Pre-tax profit 428

Net profit 413

Book value portfolio 1,800

Market value portfolio 2,700

Cost/income ratio 27%

1 Q 1 999

75

27

48

43

1,900

n.a.

36%

22

Risk under Control

VAR Current limit CHF 600 million with first-quarter 1999average VAR (10 day, 99%) of CHF 220 million

Market stressloss limits

CHF 1.3 billion

Non-performingloan coverage

Coverage of 96%

Counterparty risk International counterparty risk substantially reduced(by ca. CHF 130 billion since 31 March 1998)

EURO and Y2K EURO smooth introduction in all divisions.Y2K 85% preparations complete

23

Asset quality

♦ 96% of NPLs covered

♦ CHF 15 billionreduction in loan book,mostly WDR

♦ Slight change incomposition of countryrisk provisions

(C HF bn) 3 1 D ec 1 998

Total loans (gross) 331

NPLs 15.7

Allowances & 15.0Provisions(1)

NPLs/Total loans 4.7%

Provisions/NPLs 95.3%

Note:(1) Of which CHF 1.5 billion relates to country risk provisions

(year-end 1998: CHF 1.5 billion)

3 1 M ar1 999

316

15.4

14.8

4.9%

96.1%

24

Principles for equity management

♦ Effective use of equity for value creation

♦ 1% of stock bought back in 1Q 1999 - investment in our ownstock acceptable alternative in absence of strategicacquisition targets

♦ Target range for equity management: Tier 1 ratio8.5% - 9.0%

♦ Active management of treasury stock for equity amountsexceeding target range

25

Outlook 1999

♦ Confident that for the full-year, significantly higher result than1998 and approaching target of ca. 15-20% ROE

♦ Domestic integration issues on track as planned

♦ Challenging financial market perspectives

♦ Investment banking on course

26

Market capitalization as of 25 May 1999

0

20

40

60

80

100

120

140

160(U

S$ b

n)

Source: Bloomberg

Citigroup BankAmerica

HSBC LloydsTSB

Group

ChaseBancOne

Bank ofTokyo/

Mitsubishi

BNP &SG Paribas

ING

146.7

114.5

100.9

75.369.1

64.1 59.5 57.0 53.9

UB S

6 2 .8