UBS Product Day - ZurichFixed IncomeSimon Bunce, Global Head of Fixed Income andRates

June 1, 2006

1

Fixed Income organization

Fixed Income

Notes:1. Including Switzerland2. Joint reporting line to Investment Banking

Valid as of May 10, 2006

UBS Investment Bank

FXCCTEquities Investment Banking

Asia-PacificAmericas Europe1

RatesMunicipalSecurities

Debt CapitalMarkets2

Credit FixedIncome

Commodities

Distribution Research &Transactional

Risk Mgmt

COO SecuritizedProduct Group

EmergingMarkets

2Source: Mercer Oliver Wyman

Fixed Income market revenue growth

Fixed Income markets have significantly outperformed totalInvestment Banking revenues over the past four years

Rates incl. Munis

Other

Securitization

Credit

2001 2002 2003 2004 2005

$65bn $63bn

$82bn

$91bn

$105bn

CAGR 12%

3Source: Mercer Oliver Wyman

Evolution of Fixed Income market

Revenues are increasingly being driven by investor segmentsand proprietary/principal activities

Traditional Investors

Hedge Funds and Other

Proprietary/Principal Finance

Banks and Insurance

Corporates

%re

ven

ues

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1993 2005

4

1 FI Revenue for external disclosure includes FXCCT and PFCA/CRESource: Quarterly reports, UBS IB Analysis, PSRNote: Total revenue includes institutional revenues only

Competitor results

FIRC revenues 2004 / 20051

USD

m

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

FY 2004 FY 2005

Citi DB GS JPM LEH MS ML CSFB BSCUBS

5

Fixed Income - a global franchiseFixed Income employs 2,411 people in 21 countries1

1) Excludes interns and trainees

101323

451

28

8 17

79

1

5 12417

2

1

5

4

54

797

582

Note: headcount as of May 2006

Americas

1355

EMEA

720

APAC

336

1

6

Fixed Income product overview

Average Market Position

Under Represented Market Position

Above Average Market Position

Structured Libor

GovernmentBonds

Asset BackedSecurities

Mortgages

Derivatives

Rates Commodities

Crude OilTrading

CommoditiesStructuring

Power & GasTrading

SecuritizedProducts

Group

CollateralizedDebt

Obligations

SecuritizedProprietary

Trading

CommercialMortgage

BackedSecurities

MunicipalSecurities

Group

InvestmentBanking &

Underwriting

Bond Trading

Short TermMarket Group

RegionalTrading

InstitutionalSales

Derivatives

Research

GlobalGovernments

EmergingMarkets

High Yield

Credit Strategy

Mortgages/ABS

InvestmentGrade

Foreign Exchange

Credit FixedIncome

Distressed Debt

Structured Credit

GlobalSyndicated

Finance

High Yield

Investment Grade

EmergingMarkets

7

Key Fixed Income themes

A determination to invest and grow Fixed Income

Clients

ProductDevelopment

BusinessExpansion

Cross-business

Co-operationPeople

New Markets

8

Fixed Income growth strategy summaryWe aim to achieve a dominant market position in our client-orientedbusinesses and a world-class structured products capability

•Expand our Global Structured Finance and High Yield Loan Capital Markets businessesHigh Yield

SecuritizedProducts

•Build out of new Securitized Products Group, including a Commercial Real Estate CapitalMarkets group and a proprietary trading desk

Commodities •Expand our Commodities business globally

Emerging Markets•Expand Fixed Income capability in Emerging Markets countries focusing on Brazil, Russia,

India, China, and Mexico

Structured Credit •Expand our Investment Grade Structured Credit and Trading businesses

Business Growth &Other

•Expand businesses and local markets presence in the APAC region•Expand Municipal Securitization, Derivatives, and Proprietary Trading Businesses

9

Client focusClients are at the center of our business and underpin our growthinitiatives…

…and we are focused on increasing the advisory aspect of our service to them

• Integration of Taxable Fixed Income business

• Creation of UBS Home Finance

WealthManagement

Hedge Funds• Appointment of Head of Hedge Funds

• Development of Prime Brokerage platform

FinancialSponsors

• Improvement of “client experience” with leveraged finance product

• Alignment of client relationship decisions with balance sheet riskmanagement decisions

• Access For Success – Pension Opportunity Initiative

• Creation of Asset Liability Management unitPensions

10

Fixed Income reengineering drivers

Mission

Recruitment Risk ProcessRisk

Framework

Infrastructure CultureClient

Reengagement

All our efforts are aligned around our mission…

…to deliver one firm to our clients

11

Questions…