Fourth quarter 2015 results February 2, 2016 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 cost reduction and efficiency initiatives and its planned further reduction in its Basel III risk-weighted assets (RWA) and leverage ratio denominator (LRD), and the degree to which UBS is successful in implementing changes to its business to meet changing market, regulatory and other conditions; (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, as well as availability and cost of funding to meet 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, or result in, 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, 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 implementing changes to its legal structure to improve its resolvability and meet related regulatory requirements, including changes in legal structure and reporting required to implement US enhanced prudential standards, implementing a service company model, the transfer of the Asset Management business to a holding company and the potential need to make further changes to the legal structure or booking model of UBS Group in response to legal and regulatory requirements relating to capital requirements, resolvability requirements and proposals in Switzerland and other countries for mandatory structural reform of banks, and the extent to which such changes have the intended effects; (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) changes in the standards of conduct applicable to our businesses that may result from new regulation or new enforcement of existing standards, including measures to impose new or enhanced duties when interacting with customers or in the execution and handling of customer transactions; (ix) 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, including the potential for disqualification from certain businesses or loss of licenses or privileges as a result of regulatory or other governmental sanctions; (x) 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; (xi) 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; (xii) 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; (xiii) limitations on the effectiveness of UBS’s internal processes for risk management, risk control, measurement and modeling, and of financial models generally; (xiv) whether UBS will be successful in keeping pace with competitors in updating its technology, particularly in trading businesses; (xv) the occurrence of operational failures, such as fraud, misconduct, unauthorized trading and systems failures; (xvi) restrictions to the ability of subsidiaries of the Group to make loans or distributions of any kind, directly or indirectly, to UBS Group AG; (xvii) 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; and (xviii) the degree to which changes in regulation, capital or legal structure, financial results or other factors may affect UBS’s ability to maintain its stated capital return objective. 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 2014. 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 Group AG, UBS AG or their affiliates should be made on the basis of this document. Refer to UBS's fourth quarter 2015 earnings release, fourth quarter 2015 financial supplement and its Annual report on Form 20-F for the year ended 31 December 2014. 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. © UBS 2016. The key symbol and UBS are among the registered and unregistered trademarks of UBS. All rights reserved. 1 2015 – Strong results and execution Net profit attributable to UBS Group AG shareholders up 79% YoY to CHF 6.2 billion Strong financial performance – Adjusted profit before tax more than doubled YoY to CHF 5.6 billion – Adjusted return on tangible equity 13.7%, above FY15 target of around 10% – FY15 diluted earnings per share CHF 1.64 Continued successful execution – Strong business division performance and continued reduction of our risk profile – Pro-active management of regulatory change, including the creation of UBS Switzerland AG – Achieved Corporate Center net cost reduction of CHF 1.1 billion based on December 2015 run-rate vs. FY13 Strong results and capital position support increased capital returns – Strong capital position: 14.5% Basel III CET1 capital ratio and 5.3% Swiss SRB leverage ratio – Dividend per share to be proposed for the financial year 2015: CHF 0.60 ordinary and CHF 0.25 special We continue executing our strategy to deliver long-term sustainable profit growth Refer to slide 36 for details about adjusted numbers, Basel III numbers and FX rates in this presentation 2 The world's leading wealth management franchise UBS is the world's largest and fastest growing wealth manager1 Invested assets Operating income Profit before tax CHF trillion CHF billion CHF billion +8% CAGR +6% CAGR 2.0 1.6 1.8 12.9 1.0 WM 0.8 2.0 0.9 0.9 7.0 14.1 7.6 +11% CAGR 14.9 15.4 7.9 8.0 3.7 3.3 3.5 2.4 2.5 2.8 0.6 0.9 0.9 0.8 FY12 FY13 FY14 FY15 2.7 2.1 WMA 0.8 0.9 1.0 1.0 4Q12 4Q13 4Q14 4Q15 5.9 FY12 6.5 FY13 7.0 FY14 7.4 FY15 Superior long-term growth prospects and a unique global footprint Adjusted numbers unless otherwise indicated, refer to slide 36 for details about adjusted numbers, Basel III numbers and FX rates in this presentation 1 Scorpio Partnership Global Private Banking Benchmark 2015, on reporting base currency basis for institutions with AuM >USD 500 billion 3 2015 – Strong progress in all our businesses Improved performance in challenging market conditions Wealth Management Wealth Management Americas Personal & Corporate Banking Continued progress in book transformation with mandate penetration up 200 bps Strong operating performance and improvement in NNM Best PBT since 2010 despite significant interest rate headwinds and FX movements 24.4% 26.4% 21.4 1.6 Asset Management Investment Bank PBT up 20%, improved efficiency with progress on strategic initiatives 1.7 Strong operating performance in volatile markets; leading position in core businesses 0.6 8.3 8.8 2015 2014 2015 0.5 10.0 2014 2015 2014 Mandate penetration % of invested assets  Optimized resource utilization and continued high-quality inflows 2014 2015 Net new money USD billion  Continued prudent growth in lending book and record net interest income 2014 2015 PBT CHF billion  Record FY client acquisition (net new account openings) PBT CHF billion  Restructuring global distribution organization and streamlining business portfolio Revenues CHF billion  Named 2015 Bank of the Year by International Financing Review Adjusted numbers unless otherwise indicated, refer to slide 36 for details about adjusted numbers, Basel III numbers and FX rates in this presentation 4 Delivering attractive capital returns to our shareholders Dividend per share to be proposed for FY15: CHF 0.60 ordinary and CHF 0.25 special dividend Total capital return per share CHF per share 0.85 0.75 0.25 0.251 0.50 0.10 0.15 0.60 0.25 Financial year 2011 2012 2013 2014 2015 CET1 ratio ~6.7% ~9.8% 12.8% 13.4% 14.5% (fully applied) Special dividend Ordinary dividend • Ordinary dividend reflects strong financial performance, special dividend reflects substantial 2015 deferred tax assets write-up • We expect that dividends will be paid out of capital contribution reserves for the foreseeable future2 • Expected key dates for the dividend for FY15: – Annual General Meeting: 10 May 2016 – Ex-dividend date: 12 May 2016 – Record date: 13 May 2016 – Payment date: 17 May 2016 We are committed to a total pay-out ratio of at least 50% of net profit3 Refer to slide 36 for details about adjusted numbers, Basel III numbers and FX rates in this presentation 1 One-time supplementary capital return paid out after the completion of the squeeze-out of minority shareholders of UBS AG as part of establishing UBS Group AG in 3Q15; 2 Dividends paid out of capital contribution reserves are not subject to the deduction of Swiss withholding tax. For US federal income tax purposes, we expect that the dividend will be paid out of current or accumulated profits; 3 Conditional on maintaining a fully applied Basel III CET1 capital ratio of at least 13% and at least 10% post-stress 5 4Q15 results Net profit attributable to UBS Group AG shareholders of CHF 949 million Group Net profit attributable to UBS Group AG shareholders CHF 949 million, diluted EPS CHF 0.25 Adjusted return on tangible equity 11.4% Reported profit before tax (PBT) CHF 234 million, adjusted PBT CHF 754 million Basel III fully applied CET1 capital ratio 14.5% and Swiss SRB fully applied leverage ratio 5.3% Business divisions1 Wealth Management: PBT CHF 505 million including provisions2 of CHF 79 million; NNM outflows CHF 3.4 billion – Resilient recurring income in challenging market conditions with very low levels of client activity Wealth Management Americas: PBT USD 63 million including provisions2 of USD 233 million; NNM USD 16.8 billion – Strong NNM and record net interest income Personal & Corporate Banking: PBT CHF 396 million – Best fourth quarter PBT since 2011 Asset Management: PBT CHF 153 million; NNM outflows excluding money market CHF 8.9 billion – PBT up 12% QoQ with positive operating leverage Investment Bank: PBT CHF 223 million including annual UK bank levy charge of CHF 98 million – Strong performance in FRC with revenues up 30% YoY; RWA CHF 63 billion and LRD CHF 268 billion Corporate Center: Pre-tax loss of CHF 586 million – Significant PBT improvement QoQ on lower provisions2 1 Adjusted numbers unless otherwise indicated, refer to slide 36 for details about adjusted numbers, Basel III numbers and FX rates in this presentation 2 Charges for provisions for litigation, regulatory and similar matters 6 UBS Group AG results (consolidated) FY14 FY15 4Q14 3Q15 4Q15 Total operating income Total operating expenses 28,027 25,567 30,605 25,116 6,746 6,342 7,170 6,382 6,775 6,541 Profit before tax as reported of which: own credit on financial liabilities designated at fair value of which: gains on sales of real estate of which: gains/(losses) on sale of subsidiaries and businesses of which: gain from the partial sales of our investment in Markit of which: gain related to our investment in the SIX Group of which: net FX translation gains/(losses) from the disposal of subsidaries of which: net losses related to the buyback of debt in a tender offer of which: impairment of a financial investment available-for-sale of which: net restructuring charges of which: credit related to a change to retiree benefit plans in the US of which: impairment of an intangible asset 2,461 292 44 0 43 0 0 0 (48) (677) 41 0 5,489 553 378 225 11 81 88 (257) 0 (1,235) 21 (11) 404 70 20 0 0 0 0 0 0 (208) 8 0 788 32 0 0 0 81 (27) 0 0 (298) 21 0 234 35 0 28 0 0 115 (257) 0 (441) 0 0 Adjusted profit before tax of which: provisions for litigation, regulatory and similar matters of which: annual UK bank levy Tax (expense)/benefit Net profit attributable to preferred noteholders Net profit attributable non-controlling interests 2,766 (2,594) (123) 1,180 142 32 5,635 (1,087) (166) 898 979 (592) 0 1,295 754 (365) (166) 715 183 514 (310) (127) 515 31 29 14 1 Net profit attributable to UBS Group AG shareholders Diluted EPS (CHF) Return on tangible equity, adjusted (%) Total book value per share (CHF) Tangible book value per share (CHF) 3,466 0.91 8.6 13.94 12.14 6,203 1.64 13.7 14.75 13.00 858 0.23 8.6 13.94 12.14 2,068 0.54 19.5 14.41 12.69 949 0.25 11.4 14.75 13.00 CHF million, except where indicated Refer to slide 36 for details about adjusted numbers, Basel III numbers and FX rates in this presentation 7 Wealth Management Resilient recurring income in challenging market conditions with low levels of client activity CHF million Operating income Recurring income 2,031 2,004 2,106 2,024 1,943 1,897 1,859 1,943 1,921 589 479 436 459 366 364 472 542 423 583 568 600 569 598 560 513 518 496 911 897 922 978 986 949 976 960 935 77% 72% 75% 76% 78% 72% 76% 80% 81% Transaction-based Net interest Recurring net fee Operating expenses CHF million 1,348 1,285 555 480 159 185 633 620 C/I ratio CHF million 512 73% 1,393 1,264 1,311 1,250 1,255 1,245 517 536 557 507 482 492 513 412 109 251 126 133 149 121 658 638 600 624 605 612 606 767 856 694 769 698 5054 3934 66% 80%  Transaction-based income declined on lower client activity, mainly in APAC and emerging markets, largely offset by the previously announced CHF 45 million fee received for the shift of certain clients to Personal & Corporate Banking Recurring net fee income declined, mainly reflecting lower income due to the ongoing effects of cross-border outflows Operating expenses CHF 1,393 million 1,528 659  Other Credit loss (expense)/recovery Services from other business divisions and Corporate Center G&A1 and other2 Personnel Profit before tax Operating income CHF 1,897 million 62% 65% 59% 62% 64%    Charges for services increased, mainly due to higher charges from Group Technology G&A expenses increased and included CHF 79 million litigation provision charges3, a CHF 13 million annual UK bank levy charge and a CHF 10 million charge related to the EU's Single Resolution Fund Personnel expenses declined, mainly due to lower expenses for variable compensation, partly offset by an expense for untaken vacation accruals PBT CHF 505 million, 73% cost/income ratio PBT CHF 584 million excluding provisions3 of CHF 79 million, 69% cost/income ratio 73% 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 Adjusted numbers unless otherwise indicated, refer to slide 36 for details about adjusted numbers, Basel III numbers and FX rates in this presentation 1 General and administrative; 2 Depreciation and impairment of property, equipment and software as well as amortization and impairment of intangible assets; 3 Charges for provisions for litigation, regulatory and similar matters; 4 Including charges for provisions for litigation, regulatory and similar matters of CHF 291 million in 2Q14 and CHF 79 million in 4Q15 8 Wealth Management NNM reflecting client deleveraging, seasonal headwinds and strategic discipline Net new money 4.9% 4.8% 5.8%  4.2% 3.5% 2.7% 1.5% 1.2% Annualized growth rate  (1.5%) CHF billion 5.8 10.9 10.7 9.8 3.0 14.4 8.4 3.5 (3.4) NNM outflows CHF 3.4 billion, driven by emerging markets and Europe, partly offset by Asia Pacific and Switzerland NNM was seasonally low and impacted by continued client deleveraging, cross-border outflows, as well as effects from balance sheet management Adjusted NNM1 Invested assets 886 899 928 966 987 970 945 919 947  CHF billion  Loans CHF billion 96.8 85 Margins bps 23 102.2 105.3 111.7 112.7 110.8 110.9 109.0 105.2 87 30 84 17 86 82 32 28 Gross margin 86 85 83 35 32 30  Invested assets CHF 947 billion, increased mainly due to CHF 21 billion market performance and CHF 14 billion currency translation effects Mandate penetration 26.4% vs. 27.0%, largely driven by cross-border outflows Gross loans CHF 105.2 billion, declined mainly due to client deleveraging 81  Net margin 22 bps 22 Net margin 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 Adjusted numbers unless otherwise indicated, refer to slide 36 for details about adjusted numbers, Basel III numbers and FX rates in this presentation 1 Adjusted for outflows of CHF 6.6 billion in 2Q15 and CHF 3.3 billion in 3Q15 related to the WM balance sheet and capital optimization program 9 Wealth Management Continued net inflows in APAC and Switzerland Europe Asia Pacific Switzerland Emerging markets of which: UHNW = Adjusted NNM1 Net new money 12.2% 7.8% Annualized growth rate 3.3% 2.1% 6.5% 1.8% 2.8% 0.8% 3.6% 5.4% 0.2% 3.0% 3.6% 0.5% 5.9% 8.1% 0.2% 1.3% 5.6% 3.2% 1.8% (0.5%) (1.7%) (2.4%) (9.0%) CHF billion (1.5) Gross margin 82 3.0 80 1.8 80 0.7 78 (2.0) 74 5.0 73 8.2 4.5 83 82 1.2 1.8 0.1 90 77 1.6 96 2.4 1.3 0.2 (0.2) 1.5 0.1 90 91 92 95 96 94 0.5 (3.5) 99 96 7.1 10.1 7.1 4.0 2.2 54 56 55 57 53 70 bps 4Q14 1Q15 2Q15 3Q15 4Q15 4Q14 1Q15 2Q15 3Q15 4Q15 4Q14 1Q15 2Q15 3Q15 4Q15 4Q14 1Q15 2Q15 3Q15 4Q15 4Q14 1Q15 2Q15 3Q15 4Q15 Invested assets CHF billion 343 272 174 156 505 Client advisors FTE 1,367 1,092 771 705 728 31.12.15 Adjusted numbers unless otherwise indicated, refer to slide 36 for details about adjusted numbers, Basel III numbers and FX rates in this presentation Based on the WM business area structure, refer to page 13 of the 4Q15 earnings release for more information; 1 Adjusted for outflows of CHF 6.6 billion in 2Q15 and CHF 3.3 billion in 3Q15 related to the WM balance sheet and capital optimization program 10 Wealth Management Clear strategic priorities to drive growth and profitability Strategic agenda       Investment engine and book transformation: apply our global expertise across the entire client base UHNW growth and HNW reinvigoration: capitalize on our global market-leading position in UHNW; refocus and invest in HNW Pricing: implement pricing aligned with value proposition Cost efficiency: manage direct costs to stay within cost/income targets Adapt our operating model: efficiency, simplicity and digital innovation Optimize resource utilization: to meet overall Group objectives Progress Mandate penetration 22.0% 2016 priorities 24.4% 26.4%  % of invested assets Cumulative NNM1 36 70 93  CHF billion  Recurring revenues 6,146 5,628 5,949 CHF million  PBT 2,425 2,511 2,828  CHF million Due to customers 189 191 172 CHF billion  Leverage our industryleading investment and advice capabilities Deploy a globally consistent distribution model Utilize scale benefits and streamline non-client facing functions Selectively invest in growth markets Refocus and invest in our HNW and affluent businesses Prudently manage financial resources to meet overall Group objectives FY13 FY14 FY15 Adjusted numbers unless otherwise indicated, refer to slide 36 for details about adjusted numbers, Basel III numbers and FX rates in this presentation 1 Excludes outflows related to the WM balance sheet and capital optimization program in FY15 11 Wealth Management Americas Strong operating performance with record net interest income USD million Operating income Recurring income 1,851 1,865 1,898 1,919 1,924 1,901 1,947 1,931 1,874 425 381 441 448 432 376 464 472 476 311 301 276 280 277 326 261 250 276  74% 75% 77% Transaction-based Net interest Recurring net fee USD million 76% 77% 78% 80% 79% 1,691 1,608 1,717 1,644 1,810 1,567 1,582 1,652 1,651 263 291 306 288 275 300 284 283 301 362 227 167 165 172 166 140 153 132 1,134 1,146 1,186 1,198 1,218 1,185 1,199 1,198 1,185 C/I ratio 284 246 267 293 233 86% 87% 86% 88% 85% Operating expenses USD 1,810 million   G&A expenses increased, primarily due to USD 233 million charges for provisions for litigation, regulatory and similar matters and higher legal fees Personnel expenses declined, primarily reflecting lower compensable revenues and lower performancebased and variable compensation expenses PBT USD 63 million, 97% cost/income ratio 632 84% Transaction-based income decreased on lower client activity Net interest income increased mainly due to higher interest rates and continued growth in loan and deposit balances Recurring net fee income reflected lower invested asset levels at the end of the previous quarter 287 231 USD million 283  Other Credit loss (expense)/recovery Services from other business divisions and Corporate Center G&A and other Personnel Profit before tax  1,088 1,119 1,163 1,197 1,187 1,186 1,217 1,231 1,160 73% Operating expenses Operating income USD 1,874 million 88% 85% PBT USD 296 million excluding provisions1 of USD 233 million, 84% cost/income ratio 97% 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 Adjusted numbers unless otherwise indicated, refer to slide 36 for details about adjusted numbers, Basel III numbers and FX rates in this presentation 1 Charges for provisions for litigation, regulatory and similar matters; 2 Including USD 233 million charges for provisions for litigation, regulatory and similar matters 12 Wealth Management Americas Strong NNM USD 16.8 billion 6.8% Net new money Annualized growth rate  2.1% 1.9% 2.2% 1.9% 0.9% 0.2% (0.3%) (1.0%) USD billion 4.9 2.1 (2.5) 4.9 5.5 4.8 (0.7) Invested assets 970 987 1,017 1,016 1,032 1,050 1,045 0.5 16.8 992 1,033 USD billion Loans USD billion 39.1 39.6 41.7 43.3 44.6 45.5 47.3 47.5 48.7 79 76 76 76 75 73 74 76 74 Margins bps 12 12 10 11 Gross margin 9 11 9 11  NNM USD 16.8 billion, 6.8% annualized growth rate, with significant inflows from newly recruited advisors, as well as CHF 4.9 billion net inflows from advisors who have been with the firm for more than one year Invested assets USD 1,033 billion increased on positive market performance and strong NNM  Managed accounts penetration 34%  Gross loans USD 48.7 billion  Net margin 2 bps 2 Net margin 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 Adjusted numbers unless otherwise indicated, refer to slide 36 for details about adjusted numbers, Basel III numbers and FX rates in this presentation 13 Wealth Management Americas Industry-leading productivity per advisor for revenue and invested assets Invested assets and FA productivity Net interest income and lending Annualized revenue per FA (USD thousand) Net interest income (USD million) Invested assets per FA (USD million) Credit loss (expense)/recovery (USD million) Financial advisors (FTEs) 1,042 1,037 136 139 1,091 1,088 1,068 1,079 143 143 147 150 1,118 1,111 276 1,061 150 142 6,997 6,982 6,948 1,017 1,016 1,032 1,050 1,045 6,989 7,140 992 1,033 39.1 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 Invested assets 326 276 280 277 (2) (1) 0 0 0 (3) 0 44.6 45.5 47.3 47.5 48.7 41.7 43.3 250 261 19 39.6 USD billion 987 7,114 USD billion 970 7,119 USD billion 7,113 311 145 (9) 7,137 301 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 Loans, gross Adjusted numbers unless otherwise indicated, refer to slide 36 for details about adjusted numbers, Basel III numbers and FX rates in this presentation 14 Personal & Corporate Banking Best fourth-quarter PBT since 2011 CHF million Operating income 931 932 938 958 913 979 952 964 256 234 247 267 273 284 241 238 915 196 540 523 541 563 557 568 560 566 576 127 144 138 140 133 134 135 136 139 587 CHF million   Transaction-based Net interest Recurring net fee Operating expenses Operating income CHF 915 million 532 571 267 244 256 125 64 224 101 195 214 Other Credit loss (expense)/recovery 557 536 538 536 519 238 277 252 249 243 234 55 219 91 190 57 225 68 221 81 213 75 211 512  Transaction-based income declined, mainly due to the previously announced CHF 45 million fee paid for the shift of certain clients from Wealth Management Net interest income increased, reflecting higher allocated income from Corporate Center – Group ALM Net credit loss expenses increased to CHF 11 million, predominantly due to newly impaired positions Operating expenses CHF 519 million   G&A expenses declined, primarily driven by lower charitable donations Personnel expenses decreased, mainly reflecting lower expenses for variable compensation Profit before tax C/I ratio CHF million Services from other business divisions and Corporate Center G&A and other Personnel 344 401 367 446 356 443 414 428 396 PBT CHF 396 million    62% 58% 60% 52% 57% 54% 56% 56% 56% 56% cost/income ratio Net interest margin 170 bps vs. 167 bps in 3Q15 Annualized net new business volume growth for personal banking business 0.6% vs. 2.5 % in 3Q15, following the typical seasonal pattern 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 Adjusted numbers unless otherwise indicated, refer to slide 36 for details about adjusted numbers, Basel III numbers and FX rates in this presentation 15 Personal & Corporate Banking Continued success in Switzerland's leading franchise Operating income Operating expenses Profit before tax CHF million CHF million CHF million 3,756 3,741 3,811 +5% CAGR 2,244 FY13 FY14 FY15 FY13 2,171 FY14 2,130 FY15 1,512 1,570 1,681 FY13 FY14 FY15 Cost/income ratio Net new business volume growth % Personal banking, % Target range 50-60% 59% FY13 57% FY14 55% FY15 Target range 1-4% 1.9% FY13 2.3% 2.4% FY14 FY15 Best Bank in Switzerland1 for the fourth consecutive year Adjusted numbers unless otherwise indicated, refer to slide 36 for details about adjusted numbers, Basel III numbers and FX rates in this presentation 1 Euromoney 2015 16 Asset Management Solid performance – PBT CHF 153 million, up 12% QoQ CHF million Operating income 482 72 451 47 465 38 489 27 410 404 427 462 497 34 463 Performance fees CHF million Operating expenses 339 325 118 108 65 69 156 148 357 338 110 94 111 61 153 166 511 68 443 476 20 502 23 456 479 512 44  468 CHF million 143 C/I ratio 126 151 107  Net management fees 373 342 365 89 325 102 57 110 57 119 58 359 104 59 160 167 175 188 196 123 Services from other business divisions and Corporate Center G&A and other Personnel Profit before tax Operating income CHF 512 million 186 134 124 137 153 Operating expenses CHF 359 million      72% 77% 69% 75% 64% 72% 73% Charges for services decreased, reflecting lower charges from Group Technology and Group Operations Personnel expenses increased, mainly due to higher salary-related costs as a result of increased staffing levels excluding the effect of the sale of Alternative Fund Services (AFS) PBT CHF 153 million  70% Performance fees increased, mainly in Traditional Investments and in Global Real Estate Net management fees decreased due to lower fees in Traditional Investments, O'Connor, Hedge Fund Solutions and Fund Services, partly offset by increased fees in Global Real Estate 70% cost/income ratio Invested assets CHF 650 billion Net margin 10 bps vs. 9 bps in 3Q15 Gross margin 32 bps vs. 31 bps in 3Q15 70% 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 Net new money ex. MM  (4.6) 13.0 11.6 3.8 (5.8) 7.5 8.3 (7.6) (8.9) NNM outflows excluding money market CHF 8.9 billion including CHF 15 billion of outflows, largely from lowermargin passive products, driven by client liquidity needs Adjusted numbers unless otherwise indicated, refer to slide 36 for details about adjusted numbers, Basel III numbers and FX rates in this presentation 17 Investment Bank PBT CHF 223 million, strong performance in FRC with revenues up 30% YoY Operating income 2,657 CHF million 1,843 711 2,200 2,225 768 412 320 1,020 814 1,969 1,919 981 736 704 385 325 298 865 909 908 779 721 2,344 822 402 1,156 1,128 Operating income CHF 1,721 million 2,088 710 446 944 1,721 650 388 733 Corporate Client Solutions Credit loss (expense)/recovery Investor Client Services – FX, Rates and Credit Investor Client Services – Equities     CCS revenues down 8% YoY reflecting a global decline in the market fee pool ICS – FRC revenues up 30% YoY driven by continued strong Macro and improved performance in Credit Flow ICS – Equities revenues down 19% YoY against a very strong comparable quarter, particularly in Derivatives Net credit loss expenses CHF 50 million, mainly related to the energy sector Operating expenses CHF million 3,190 1,474 585 298 591 1,821 1,727 1,641 1,677 631 1,643 1,474 1,498 615 620 615 633 679 611 595 1,866 201 167 186 160 181 326 469 1,006 940 848 876 699 693 562 495 Operating expenses CHF 1,498 million  Profit before tax CHF million Services from other business divisions and Corporate Center G&A and other Personnel 836 369 559 548 617 PBT CHF 223 million 614 276 223     (1,221)2 C/I ratio 80% 75% 75% 162% 86% 69% 73% 70% Operating expenses excluding litigation provision charges1 were broadly unchanged YoY, despite a CHF 30 million increase in the annual UK bank levy to CHF 98 million 85% cost/income ratio Annualized return on attributed equity 12% Basel III RWA CHF 63 billion LRD3 CHF 268 billion 85% 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 Adjusted numbers unless otherwise indicated, refer to slide 36 for details about adjusted numbers, Basel III numbers and FX rates in this presentation 1 Charges for provisions for litigation, regulatory and similar matters; 2 Including CHF 1,687 million in charges for provisions for litigation, regulatory and similar matters; 3 Calculated in accordance with Swiss SRB rules, from 31.12.15 onwards, these are fully aligned with BIS Basel III rules 18 Corporate Center Non-core and Legacy Portfolio LRD below CHF 50 billion 4Q14 Profit before tax 1Q15 (332) 2Q15 3Q15 (514) (1,164) 4Q15 (586) (1,174) Corporate Center total (CHF million) Corporate Center results by unit (CHF million) Services Operating income Operating expenses o/w before allocations o/w net allocations Profit before tax (6) (4) (41) (38) (54) 255 218 212 217 272 2,303 2,009 2,040 2,017 2,085 (2,048) (1,791) (1,827) (1,800) (1,814) (261) (222) (253) (255) (326) (121) (121) 48  Operating expenses before allocations increased, mainly due to vacation accruals and an increase in the depreciation of internally generated capitalized software, partly offset by lower marketing expenses Group Asset and Liability Management Operating income o/w gross income o/w net allocations Operating expenses Profit before tax (170) 87 161 376 70 86 237 (330) (289) (191) (207) (189) 6 (4) 7 (5) (3) (127) (116) 51 35 (126) (71) (176) 91  Gross income increased mainly due to hedging activities, which included a gain of CHF 81 million on interest rate derivatives held to hedge high-quality liquid assets1, compared with a loss of CHF 201 million in the prior quarter, reflecting an increase in US dollar interest rates Non-core and Legacy Portfolio Operating income (376) (41) Operating expenses 350 160 167 677 241 Profit before tax (727) (201) (132) (803) (312) 137 125 101 82 77 93 84 70 59 46 Personnel (FTEs) 3 LRD (CHF billion)  Operating expenses declined, predominantly as litigation provision charges2 decreased by CHF 483 million to CHF 51 million, partly offset by a charge of CHF 50 million for the annual UK bank levy Adjusted numbers unless otherwise indicated, refer to slide 36 for details about adjusted numbers, Basel III numbers and FX rates in this presentation 1 Assets hedged are held as available-for-sale, with unrealized fair value changes recorded in other comprehensive income within equity; 2 Charges for provisions for litigation, regulatory and similar matters; 3 Calculated in accordance with Swiss SRB rules, from 31.12.15 onwards, these are fully aligned with BIS Basel III rules 19 Corporate Center cost reductions Continued net cost reduction progress CHF 2.1 billion Achieved 48% of year-end 2017 target CHF 2.1 billion Achieved 52% of year-end 2017 target  1.1 1.0  Cumulative annualized net cost reduction CHF billion September 2015 monthly annualized exit rate vs. FY13 Achieved CHF 1.1 billion net cost reductions based on December 2015 annualized exit rate Improving our effectiveness and efficiency continues to be of highest priority for the Group December 2015 monthly annualized exit rate vs. FY13 = 2017 year-end exit rate target Adjusted numbers unless otherwise indicated, refer to slide 36 for details about adjusted numbers, Basel III numbers and FX rates in this presentation 20 Corporate Center cost reductions Gross savings of ~CHF 1.7 billion FY15 vs. FY13 have been partially offset by increased business demand and permanent regulatory costs Corporate Center operating expenses before allocations1 CHF billion 10.3 Litigation provisions2 1.5 Temporary regulatory demand 0.2 9.1 <0.1 (1.7) 0.6 0.4 0.7 <0.1 0.4 Residual operating expenses1,3 (0.2) 7.6 2 8.6 of which: 0.2 permanent regulatory demand4 FY13 7.8 1 FX Gross savings Increased business demand of which: 0.5 permanent regulatory demand4 Increased permanent regulatory demand in Corporate Center FY15 1 + 2 = FX Incremental net cost reductions to exit rate December 2015 annualized exit rate CHF 1.1 billion net cost reductions based on December 2015 annualized exit rate Adjusted numbers unless otherwise indicated, refer to slide 36 for details about adjusted numbers, Basel III numbers and FX rates in this presentation 1 Sum of Corporate Center – Services operating expenses before allocations to business divisions, Corporate Center – Non-core and Legacy Portfolio operating expenses and Corporate Center – Group ALM operating expenses; 2 Charges for provisions for litigation, regulatory and similar matters; 3 Excluding litigation provisions and regulatory demand of temporary nature; 4 Additional ~CHF 0.1 billion regulatory demand of permanent nature recorded in business division operating expenses 21 Corporate Center cost reductions Examples of cost reduction activities in progress1 Improving cost efficiency by optimizing global workforce model and footprint Workforce & footprint Share of FTEs in offshore and nearshore locations Desk capacity created since 4Q14 in strategic locations % of total FTE FTE thousands 18% 18% 19% 20% 21% 22% 23% 25% 27% 1.9 1.1 2017 ~75% ~55% Organization & process optimization ~15% ~20% 0.5 0.6 0.6 Approximate proportion of savings:2,3,4 2015 1.8 4Q13 1Q14 2Q14 3Q14 4Q14 Internal 1Q15 2Q15 3Q15 Poland (Krakow, Wroclaw) 4Q15 External India (Pune) 4Q15 US (Nashville) 0.1 0.5 China (Shanghai) 4Q16 (estimate) Realizing cost synergies, simplifying our organization and creating centers of excellence  Single application delivery function within Group Technology: converging multiple business-aligned functions  Integrated middle office: converged and centralized multiple teams from across operations and finance  Reporting and analytics service: one unit centralizing previously dispersed reporting functions within Corporate Center Reducing costs and improving effectiveness Technology Technology infrastructure modernization Application simplification Upgrading our technology foundation and increasingly moving from multiple, dedicated hardware solutions to firm-wide, virtualized, 'as-a-service' offerings: Infrastructure ~10% ~25% Servers migrated: 26% Databases Databases migrated: 24% End-user FTEs using virtual desktops: ~7k Modernization and re-engineering of the application portfolio to replace, reduce and simplify legacy systems; milestones achieved:   Wealth Management: unified platform deployed in Germany in advance of APAC and European roll-out ICS – FX, Rates and Credit: initial deployment of target state cross-asset platform We are taking continued action to improve effectiveness and efficiency 1 Corporate Center excluding Non-core and Legacy Portfolio; 2 Percentage of cumulative gross exit rate savings vs. FY13 as % of total for the three illustrated levers Workforce & footprint, Organization & process optimization and Technology; 3 Gross cost savings exclude, e.g., increased business demand and increased regulatory demand; 4 Examples of activities for each lever, e.g. Technology infrastructure modernization, are illustrative and non-exhaustive 22 Capital and leverage ratios Strong capital position with 14.5% Basel III CET1 ratio and 5.3% Swiss SRB leverage ratio Basel III CET1 capital ratio1 Swiss SRB Leverage ratio Swiss SRB, fully applied, CHF billion Fully applied, CHF billion 13.7% 14.4% 14.3% 14.5% 10.0% 2019 requirement 4.2% 2019 requirement 5.3% 4.6% 4.7% 5.0% 3.0% 3.2% 3.3% 3.3% 1Q15 2Q15 3Q15 4Q15 AT1 + T2 1Q15 2Q15 3Q15 4Q15 CET1 capital 29.6 30.3 30.9 30.0 Total capital 44.5 44.6 47.6 47.4 RWA 216 210 216 208 LRD2 977 944 946 898 CET1 Current Swiss SRB regulation3 Refer to slide 36 for details about adjusted numbers, Basel III numbers and FX rates in this presentation; 1 As of 31.12.15, our post-stress fully applied Basel III CET1 capital ratio exceeded 10%; 2 Calculated in accordance with Swiss SRB rules, from 31.12.15 onwards, these are fully aligned with BIS Basel III rules; 3 Numbers presented on this slide do not reflect the new capital requirements for Swiss systemically relevant banks as proposed by the Swiss Federal Council in October 2015 23 Continued focus on execution … What we have delivered Management priorities ✓ Execution of the transformation of UBS Deliver our performance targets ✓ Made substantial progress in reducing costs and achieving operational efficiency Improve effectiveness and efficiency ✓ Solidified position as the world's largest and fastest growing wealth manager1 Invest for growth … to drive sustainable performance and returns to our shareholders 1 Scorpio Partnership Global Private Banking Benchmark 2015, on reporting base currency basis for institutions with AuM >USD 500 billion 24 Appendix Group and business division targets and expectations Business divisions and Corporate Center Ranges for sustainable performance over the cycle1 Net new money growth rate Adjusted cost/income ratio 3-5% 55-65% Wealth Management Americas Net new money growth rate Adjusted cost/income ratio 2-4% 75-85% Personal & Corporate Banking Net new business volume growth rate 1-4% (personal banking) Net interest margin 140-180 bps 50-60% Adjusted cost/income ratio Wealth Management Asset Management Investment Bank Corporate Center Group 10-15% annual adjusted pre-tax profit growth for combined businesses through the cycle Net new money growth rate Adjusted cost/income ratio 3-5% excluding money market flows Adjusted annual pre-tax profit CHF 1 billion in the medium term Adjusted annual pre-tax RoAE Adjusted cost/income ratio >15% 70-80% RWA (fully applied) BIS Basel III LRD (fully applied) Expectation: around CHF 85 billion short/medium term Expectation: around CHF 325 billion short/medium term Net cost reduction2 CHF 2.1 billion by 2017 Adjusted cost/income ratio Adjusted return on tangible equity Basel III CET1 ratio (fully applied) RWA (fully applied) 60-70%, expectation: 65-75% short/medium term >15%, expectation: approximately at 2015 level in 2016, approximately 15% in 2017 and >15% in 2018 at least 13%3 Expectation: around CHF 250 billion short/medium term LRD (fully applied) Expectation: around CHF 950 billion short/medium term 60-70% Refer to slide 36 for details about adjusted numbers, Basel III numbers and FX rates in this presentation 1 Refer to page 11 of the 3Q15 financial report for details; 2 Measured by year-end exit rate vs. FY13 adjusted operating expenses, net of changes in charges for provisions for litigation, regulatory and similar matters, FX movements and changes in regulatory demand of temporary nature; 3 Our capital returns policy is also subject to maintaining a post-stress fully applied CET1 capital ratio of at least 10% 26 Capital requirements under draft proposal for revised Swiss SRB Effective end-2019, with a transitional period starting 1.7.16 TLAC Gone concern 5.7% Going concern 14.3% • Overall requirement mirrors the going concern requirement 14.3%requirement subject to a potential reduction of up to 5.7% • To be met with bail-in instruments (TLAC) • Potential reduction of up to 2% leverage ratio (5.7% capital ratio) based on Group resilience and resolvability3 8.6% Hightrigger AT1 4.3% HT AT1 CET1 2.0% 3.0% CET1 10.0% 5.0% 1.5% 3.5% Capital ratio1 Gone concern capital (TLAC) Leverage ratio2 5.0% requirement subject to potential reduction of up to 2.0% Going concern capital • Overall size depends on total LRD and Swiss market share • Maximum of 1.5% can be met with high-trigger AT1 capital instruments • Grandfathering: all existing AT1 and T2 instruments recognized towards high-trigger AT1 capital at least until 20194,5 Refer to slide 36 for details about Basel III numbers and FX rates in this presentation 1 In percent of RWA; 2 In percent of LRD; 3 The size of the rebate has not yet been determined; 4 Low-trigger AT1 instruments can be counted towards going concern capital up to the first call date; 5 T2 instruments can be counted towards going concern capital up to the earlier of the first call date or 31.12.19 (and after 31.12.19 towards gone concern capital up to the first call date) 27 Capital requirements under draft proposal for revised Swiss SRB We will be compliant from the inception of the new requirements UBS leverage capital ratio balances vs. revised Swiss SRB UBS position as of 31.12.151 Phase-in leverage ratio requirements2 Gone concern Gone concern capital requirement is subject to a potential reduction of up to 2.0% 2.0% Pro-forma: Public debt4 issued out of UBS AG Meeting 2019 requirements 3.8% Gone concern (bail-in bonds) • 0.6% (CHF 5.6 billion) existing UBS Group AG TLAC bonds3 • 3.8% (CHF 34.0 billion) UBS AG public debt4 which we expect to replace upon maturity with UBS Group AG issuance of TLAC-eligible bonds by 31.12.19 • Requirement is subject to potential reduction of up to 2% based on improved resilience and resolvability 3.0% Bail-in bonds High-trigger AT1 capital6 0.6% • 1.9% (CHF 17.4 billion) comprising CHF 3.8 billion existing high-trigger AT1 capital and CHF 13.6 billion grandfathered instruments (low-trigger AT1 and low- and high-trigger T2 instruments)5,7 • We expect to build another ~CHF 1.5 billion in employee high-trigger AT1 DCCP capital by 31.12.19 • We expect to replace maturing grandfathered T2 with UBS Group AG issuance of high-trigger AT1 5.0% Going concern High-trigger AT15,6 incl. grandfathered low-trigger AT1 and low- and high-trigger T2 CET1 Fully applied 1.9% 1.5% 3.5% 3.5% 3.3% 31.12.15 1.7.16 CET1 capital • 3.3% (CHF 30.0 billion) CET1 • Incremental ~15 bps of CET1 leverage ratio via earnings accretion (~CHF 3 billion assuming CHF 950 billion LRD8) 31.12.16 31.12.17 31.12.18 31.12.19 Refer to slide 36 for details about Basel III numbers and FX rates in this presentation 1 Based on 31.12.15 fully applied Swiss SRB LRD of CHF 898 billion and fully applied CET1 and AT1 capital including instruments subject to grandfathering rules; 2 Phase-in requirements in the chart are illustrative; 3 UBS Group AG senior unsecured debt expected to be TLAC-eligible; 4 Excluding structured notes; 5 Low-trigger AT1 instruments can be counted towards going concern capital up to the first call date and T2 instruments can be counted towards going concern capital up to the earliest of the first call date or 31.12.19 (and after 31.12.19 towards gone concern capital up to the first call date); 6 Going concern requirement can be met with a maximum of 1.5% high-trigger AT1 capital and any going concern-eligible capital above this limit can be counted towards the gone concern requirement; 7 Including CHF 6.6 billion low-trigger T2 with first call and maturity date after 31.12.19, which will qualify as gone concern capital after 31.12.19; 8 Per our short/medium term expectation 28 LRD: former Swiss SRB vs. new Swiss SRB Swiss SRB rules for the calculation of LRD are fully aligned with BIS Basel III rules as of 31.12.15 Swiss SRB LRD CHF billion 946 Swiss SRB (former) 3Q15 4 (14) 1 2 From 3-month avg. to spot From (former) Swiss SRB to BIS 936 Swiss SRB (new) 30.9.15 = BIS spot (18) 13 (13) (10) (8) 3 4 5 6 7 FX On-balance sheet assets1 Securities financing transaction exposures Derivative exposures Off-balance sheet items (1) 898 Other items Swiss SRB (new) 31.12.15 Changes due to regulatory methodology 1  From 3-month average to spot: Change from 3-month average to spot 2  Regulatory methodology: Change due to the alignment of the calculation methodology to new Swiss SRB (BIS aligned) rules on a spot basis Changes due to QoQ movements in Swiss SRB (new) 3  FX: mainly due to USD appreciation 4  On-balance sheet assets1: largely due to lower cash and balances at central banks, resulting from the repurchase of senior and subordinated debt and covered bonds as well as net maturities of short-term debt, partly offset by the issuance of long-term unsecured debt 5  Securities financing transaction exposures: mainly reflecting a reduced need for externally sourced collateral and client driven reductions, as well as a decrease in counterparty credit risk due to the consideration of incremental collateral 6  Derivative exposures: mainly reflecting the ongoing reduction activity in Corporate Center – Non-core and Legacy Portfolio, as well as client-driven reductions in notional volumes and fair value decreases in the Investment Bank 7  Off-balance sheet items: primarily driven by active portfolio management and the reassessment of forward starting transactions Refer to slide 36 for details about adjusted numbers, Basel III numbers and FX rates in this presentation 1 Excluding derivatives and securities financing transactions 29 Corporate Center – Non-core and Legacy Portfolio Credit and market risk RWA down ~90% since 4Q12 RWA LRD1 and RWA by category CHF billion CHF billion, 31.12.15 103 Operational risk Credit and market risk 14 88 4Q12 36 36 19 20 16 4Q14 Rates Credit Securitizations 32 32 31 20 20 21 16 12 12 10 1Q15 2Q15 3Q15 4Q15 20.6 7.0 4.3 0.5 1.9 1.5 APS/ARS 2.8 0.9 Muni swaps and options 2.5 0.5 Other 11.3 1.8 Operational risk 21.1 LRD CHF 46 billion RWA CHF 31 billion LRD: natural decay1,3 LRD1 CHF billion CHF billion ~2932 93 4Q12 4Q14 84 1Q15 70 2Q15 59 3Q15 46 4Q15 ~43 4Q16 ~34 ~30 ~27 4Q17 4Q18 4Q19 Refer to slide 36 for details about Basel III numbers and FX rates in this presentation 1 Calculated in accordance with Swiss SRB rules, from 31.12.15 onwards, these are fully aligned with BIS Basel III rules; 2 Pro-forma estimate based on period-end balance; 3 Pro-forma estimate excluding any further unwind activity based on 31.12.15 data, assuming positions are held to maturity. LRD balances can vary materially due to market movements, changes in regulation, changes in margin requirements and other factors 30 Net tax benefit and deferred tax assets 4Q15 included net additional recognized deferred tax assets of CHF 794 million 4Q15 net tax benefit of CHF 715 million Tax loss DTAs1,2,3 CHF million CHF billion, 31.12.15 Profit before tax (as reported) 3Q15 4Q15 788 234 Unrecognized Recognized Net deferred tax benefit with respect to net additional DTAs Other net tax expense in respect of taxable profits (1,513) (794) 218 79 18.4 7.1 Net tax expense/(benefit) (1,295)  6.6 (715) Total  14.9 US 0.2 0.2 CH 0.3 2.3 1.0 UK RoW 4Q15 net upward revaluation of recognized deferred tax assets of CHF 794 million, mainly related to the annual reassessment of our deferred tax assets, following the completion of our business planning process in 4Q15, as well as the recording of part of the net deferred tax benefit associated with the establishment of the US Intermediate Holding Company We currently expect to recognize additional net DTAs of approximately CHF 0.5 billion in 2H16, assuming no changes to planning assumptions 1 Refer to pages 75-76 of the 2014 annual report for more information; 2 As of 31.12.15, net DTAs recognized on UBS's balance sheet were CHF 12.8 billion, of which tax loss DTAs of CHF 7.1 billion and DTAs for temporary differences of CHF 5.7 billion; 3 Average unrecognized tax losses have an approximate remaining life of ~14 years in the US, ~2 years in Switzerland and an indefinite life in the UK 31 Oil and gas exposures We are closely monitoring the sector given the potential negative effects of sustained low energy prices Oil and gas net lending exposure1 CHF billion CHF 6.1 billion Other regions CHF 6.1 billion Services & Supply 11% Other rating grades North America CHF 6.1 billion 48% Integrated 7% 7% Refining 13% Exploration & Production 32% 89% Investment grade By geography Integrated (CHF 0.5 billion): 100% of counterparties rated investment grade Refining (CHF 0.8 billion): predominantly asset-based lending Exploration & Production (CHF 2.0 billion): mainly US Reserve Based Loans where the borrowing base structure is closely tied to the value of proven reserves 52% Midstream By rating Services & Supply (CHF 0.4 billion): generally serving Exploration & Production companies, which are significantly reducing costs in response to lower energy prices 41% Midstream (CHF 2.5 billion): infrastructure-like segment expected to be resilient to lower energy prices because transportation revenues are largely fee or volume based By segment 1 As of 31.12.15, total net lending exposure to the oil and gas sector, predominantly recorded within the Investment Bank 32 Regional performance – 4Q15 Americas CHF billion Operating income Operating expenses EMEA 1 Switzerland Global Total 3Q15 4Q15 3Q15 4Q15 3Q15 4Q15 3Q15 4Q15 3Q15 4Q15 3Q15 4Q15 WM 0.1 0.1 0.5 0.5 0.9 0.9 0.4 0.4 0.0 0.0 1.9 1.9 WMA 1.9 1.9 - - - - - - - - 1.9 1.9 P&C - - - - - - 1.0 0.9 - - 1.0 0.9 AM 0.2 0.2 0.1 0.1 0.1 0.1 0.1 0.2 - 0.0 0.5 0.5 IB 0.7 0.6 0.6 0.4 0.6 0.5 0.2 0.2 (0.0) (0.0) 2.1 1.7 CC - - - - - - - - (0.3) (0.1) (0.3) (0.1) Group 2.9 2.8 1.2 1.0 1.6 1.5 1.7 1.6 (0.3) (0.0) 7.1 6.9 WM 0.1 0.1 0.3 0.4 0.6 0.8 0.2 0.2 0.0 0.0 1.2 1.4 WMA 1.6 1.8 - - - - - - - - 1.6 1.8 P&C - - - - - - 0.5 0.5 - - 0.5 0.5 AM 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.0 (0.0) 0.4 0.4 IB 0.5 0.4 0.4 0.4 0.5 0.6 0.1 0.1 (0.0) (0.0) 1.5 1.5 CC Profit before tax Asia Pacific - - - - - - - - 0.9 0.5 0.9 0.5 Group 2.3 2.5 0.8 0.8 1.2 1.4 1.0 0.9 0.9 0.5 6.1 6.1 WM 0.0 0.0 0.2 0.1 0.3 0.1 0.2 0.2 (0.0) 0.0 0.7 0.5 WMA 0.3 0.1 - - - - - - - - 0.3 0.1 P&C - - - - - - 0.4 0.4 - - 0.4 0.4 AM 0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.1 (0.0) 0.0 0.1 0.2 IB 0.2 0.1 0.2 0.0 0.1 (0.0) 0.1 0.1 0.0 0.0 0.6 0.2 CC Group - - - - - - - - (1.2) (0.6) (1.2) (0.6) 0.6 0.3 0.4 0.2 0.4 0.1 0.7 0.7 (1.2) (0.5) 1.0 0.8 Adjusted numbers unless otherwise indicated, refer to slide 36 for details about adjusted numbers, Basel III numbers and FX rates in this presentation 1 Refers to items managed globally 33 Regional performance – FY15 Americas CHF billion Operating income 1 Switzerland Global Total 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 WM 0.5 0.5 1.9 2.1 4.0 3.8 1.5 1.6 0.0 0.0 7.9 8.0 WMA 7.0 7.4 - - - - - - - - 7.0 7.4 P&C - - - - - - 3.7 3.8 - - 3.7 3.8 AM 0.7 0.7 0.3 0.3 0.4 0.4 0.5 0.6 - 0.0 1.9 2.0 IB 2.6 2.8 2.4 2.6 2.4 2.5 1.0 1.0 (0.1) (0.1) 8.3 8.8 CC - - - - - - - - (1.2) (0.4) (1.2) (0.4) 10.7 11.3 4.6 5.0 6.8 6.7 6.8 7.0 (1.2) (0.5) 27.7 29.5 WM 0.4 0.3 1.3 1.4 2.9 2.6 0.8 0.8 0.0 0.0 5.4 5.1 WMA 6.1 6.5 - - - - - - - - 6.1 6.5 P&C - - - - - - 2.2 2.1 - - 2.2 2.1 AM 0.5 0.5 0.2 0.2 0.3 0.3 0.3 0.3 0.1 (0.0) 1.4 1.4 IB 2.0 2.1 1.7 1.7 1.9 2.1 0.7 0.6 1.9 0.0 8.2 6.5 CC Profit before tax EMEA 2014 Group Operating expenses Asia Pacific - - - - - - - - 1.8 2.2 1.8 2.2 Group 8.9 9.5 3.2 3.3 5.1 5.1 4.0 3.9 3.8 2.2 24.9 23.9 WM 0.1 0.1 0.6 0.7 1.1 1.2 0.7 0.8 (0.0) 0.0 2.5 2.8 WMA 0.9 0.8 - - - - - - - - 0.9 0.8 P&C - - - - - - 1.6 1.7 - - 1.6 1.7 AM 0.2 0.2 0.1 0.1 0.1 0.1 0.2 0.3 (0.1) 0.0 0.5 0.6 IB 0.6 0.7 0.7 0.9 0.5 0.4 0.3 0.4 (2.0) (0.1) 0.2 2.3 CC Group - - - - - - - - (2.9) (2.6) (2.9) (2.6) 1.8 1.8 1.5 1.7 1.7 1.6 2.8 3.2 (5.0) (2.7) 2.8 5.6 Adjusted numbers unless otherwise indicated, refer to slide 36 for details about adjusted numbers, Basel III numbers and FX rates in this presentation 1 Refers to items managed globally 34 Adjusted results Adjus ting items FY14 FY15 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 28,027 30,605 6,307 7,258 7,147 6,876 6,746 8,841 7,818 7,170 6,775 141 56 CHF million Operating income as reported (Group) of which: Gains/(losses) on sale of subsidiaries and businesses Gain related to our investment in the SIX Group Gain from the partial sales of our investment in Markit Impairment of a financial investment available-for-sale Own credit on financial liabilities designated at FV Net FX translation gains/(losses) from the disposal of subsidiaries Gains on sales of real estate Net losses related to the buyback of debt in a tender offer WM AM WM P&C IB IB CC - Group ALM CC - Group ALM CC - Services CC - Group ALM 43 (48) 292 44 169 56 15 66 11 (28) 56 15 66 43 553 88 378 (257) (94) 88 72 61 (75) 23 1 11 (48) 61 70 226 20 378 259 32 (27) 35 115 (257) Operating income adjusted (Group) 27,696 29,526 6,415 7,147 7,031 6,863 6,656 8,096 7,492 7,084 6,854 Operating expenses as reported (Group) 25,567 25,116 5,858 5,865 5,929 7,430 6,342 6,134 6,059 6,382 6,541 185 55 64 50 261 30 31 (9) (8) (20) (3) 323 137 101 82 396 140 56 (21) 41 26 12 13 89 (7) 24 40 10 15 4 124 2 9 38 7 13 2 27 4 (2) 60 15 20 5 50 16 10 (3) (8) (19) (3) 48 23 16 39 60 8 14 (7) 46 24 16 18 70 119 11 69 24 17 4 66 0 13 74 39 28 23 118 2 15 (21) 133 50 41 38 143 19 17 24,931 23,891 5,660 5,661 5,840 7,287 6,142 5,829 5,857 6,105 6,100 Operating profit/(loss) before tax as reported 2,461 5,489 449 1,393 1,218 (554) 404 2,708 1,759 788 234 Operating profit/(loss) before tax adjusted 2,766 5,635 755 1,486 1,191 (424) 514 2,268 1,635 979 754 of which: Net restructuring charges Credit related to changes to retiree benefit plans in the US Impairment of an intangible asset Operating expenses adjusted (Group) WM WMA P&C AM IB CC - Services CC - NCL 1 WMA AM IB CC - NCL 1 IB (1) 11 11 Adjusted numbers unless otherwise indicated, refer to slide 36 for details about adjusted numbers, Basel III numbers and FX rates in this presentation Refer to page 6 of the 4Q15 earnings release for an overview of adjusted numbers; 1 Non-core and Legacy Portfolio 35 Important information related to this presentation Use of adjusted numbers Unless otherwise indicated, “adjusted” figures exclude the adjustment items listed on the previous slide, to the extent applicable, on a Group and business division level. Adjusted results are a non-GAAP financial measure as defined by SEC regulations. Refer to page 6 of the 4Q15 earnings release which is available in the section "Quarterly reporting" at www.ubs.com/investors for an overview of adjusted numbers. If applicable for a given adjusted KPI (i.e., adjusted return on tangible equity), adjustment items are calculated on an after-tax basis by applying indicative tax rates (i.e., 2% for own credit, 22% for other items, and with certain large items assessed on a case-by-case basis). Refer to page 7 of the 4Q15 financial supplement for more information. 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). Numbers in the presentation are Swiss SRB Basel III numbers unless otherwise stated. Basel III risk-weighted assets in this 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 rules, unless otherwise stated. From 31.12.15 onwards, these are fully aligned with BIS Basel III rules. Prior period figures are calculated in accordance with former Swiss SRB rules and are therefore not comparable. Refer to the “Capital Management” section in the 4Q15 earnings release 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. 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. 36