Results

UBS’s consolidation of Motor-Columbus into its accounts at the beginning of third quarter 2004 resulted in a revaluation of the latter’s assets and liabilities. These are no longer comparable with those previously published in Motor-Columbus’s separate consolidated financial statements. The comparative analysis provided here is based on unaudited proforma 2003 results.

For the six months ending 31 December 2004, our share in Motor-Columbus’s net profit was CHF 45 million. In the same period, total operating income was CHF 3,667 million and total operating expenses were CHF 3,460 million.

In fourth quarter 2004, our share in net profit was CHF 28 million. Profit before tax and minority interests was CHF 137 million, a significant increase compared to the same quarter a year earlier and third quarter 2004. The increase in profit compared to third quarter is mainly due to seasonal factors in the energy business and an improved performance in the energy services business.

Total operating income in fourth quarter 2004 was CHF 1,975 million, up 17% from third quarter 2004 and significantly higher than in the same period a year earlier. The gain was due to the first-time availability of production capacity in Southern Europe. Total operating expenses, at CHF 1,838 million in fourth quarter, rose at a slower pace than operating income because costs for energy purchased from third parties fell in the period as internal power production could be run at near full capacity. Expense levels also benefited from lower project costs.