Group structure and shareholders

Under Swiss company law, UBS is organized as a limited company, a corporation that has issued shares of common stock to investors. UBS AG is the parent company of the UBS Group.

UBS Group legal entity structure

The legal entity structure of UBS is designed to support its businesses within an efficient legal, tax, regulatory and funding framework. None of the Business Groups of UBS or its Corporate Center are separate legal entities. They operate out of the parent bank, UBS AG, through its branches worldwide. The goal of this structure is to capitalize on the increased business opportunities and cost efficiencies offered by the use of a single legal platform and to enable the flexible and efficient use of capital.

Where it is either not possible or not efficient to operate out of the parent bank, usually due to local legal, tax or regulatory rules or as a result of additional legal entities joining the UBS Group through acquisition, businesses operate through local subsidiaries. The significant operating subsidiary companies of the Group are listed in note 35 to the financial statements.

Operational group structure

The three Business Groups – Global Wealth Management & Business Banking (with its three business units Wealth Management International & Switzerland, Wealth Management US, and Business Banking Switzerland), Global Asset Management, and Investment Bank – together with Corporate Center – form the operational structure of the Group's financial businesses. Performance is reported according to this structure (see our Financial Report 2006). In addition, the UBS Group accounts contain a separate reporting segment called Industrial Holdings which includes our private equity holdings. This allows UBS to maintain continuity in the presentation and analysis of the core financial businesses.

Listed and non-listed companies belonging to the Group (consolidated entities)

The UBS Group includes a great number of subsidiaries, none of which, however, is listed. For details of significant subsidiaries, see note 35 to the financial statements.

Significant shareholders

Chase Nominees Ltd., London, acting in its capacity as a nominee for other investors, was registered with 8.81% of all shares issued as of 31 December 2006, compared to 8.55% at year-end 2005 and 8.76% at year-end 2004. DTC (Cede & Co.), New York, "The Depository Trust Company", a US securities clearing organization, was registered as a shareholder for a great number of beneficial owners with 13.21% of all shares issued as of 31 December 2006 (9.95% as of 31 December 2005). According to UBS's Regulation on the Registration of Shares, voting rights of nominees are restricted to 5%, while clearing and settlement organizations are exempt from this restriction. No other shareholders hold more than 5% of all shares issued. Ownership of UBS shares is widely spread. The tables on the next page provide information about the distribution by category of shareholders and by geography. This information relates only to registered shareholders and cannot be assumed to be representative of the entire UBS investor base. Only registered shareholders are entitled to exercise voting rights.

Under the Swiss Stock Exchange Act, anyone holding shares in a company listed in Switzerland has to notify the company and the stock exchange if the holding attains, falls below or exceeds the following thresholds: 5, 10, 20, 33 1?3, 50, or 66 2?3% of the voting rights, whether they are exercisable or not. The methodology for calculating the limit is defined in the Ordinance of the Swiss Federal Banking Commission on the Stock Exchange (disclosure of shareholdings) and includes, among others, securities lending and share acquisition rights that provide entitlement for the future acquisition of shares. Since 13 September 2002, UBS's holdings of its own shares have been above the 5% threshold requiring disclosure under the Swiss Stock Exchange law. UBS's position in its own shares remained between 5 and 10% throughout 2006.

At year-end, UBS's holdings in its own shares were 7.4% of the total share capital in the form of shares. It also held a further potential 0.2% of total share capital through derivatives UBS held on its own shares.

Cross shareholdings

UBS has no cross shareholdings in excess of a reciprocal 5% of capital or voting rights with any other company.

Distribution of UBS shares
As of 31.12.06	Shareholders registered		Shares registered
Number of shares registered	Number	%	Number	% of shares issued
1–100	24,449	13.4	1,357,538	0.1
101–1,000	108,784	59.6	46,079,603	2.2
1,001–10,000	45,424	24.8	120,980,866	5.8
10,001–100,000	3,700	2.0	90,392,786	4.3
100,001–1,000,000	383	0.2	109,700,004	5.2
1,000,001–5,000,000	73	0.0	156,758,747	7.5
5,000,001–21,052,732 (1%)	23	0.0	217,887,253	10.3
1–2%	2	0.0	74,643,418	3.5
2–3%	1	0.0	43,941,400	2.1
3–4%	0	0.0	0	0.0
4–5%	0	0.0	0	0.0
Over 5%	2 ¹	0.0	463,590,138	22.1
Total registered	182,841	100.00	1,325,331,753	63.0
Unregistered ²			779,941,533	37.0
Total shares issued			2,105,273,286³	100.0
1 As of 31.12.2006, DTC (Cede & Co.), New York, the US securities clearing organization, was registered with 13.21% of all shares issued. Chase Nominees Ltd., London, was entered as a trustee / nominee holding 8.81% of all shares issued. 2 Shares not entered in the share register at 31 December 2006. 3 Registered shares of 265,631,846 do not carry voting rights.

Shareholders: type and distribution
	Shareholders		Shares
As of 31.12.06	Number	%	Number	%
Individual shareholders	176,061	96.3	235,514,218	11.2
Legal entities	6,353	3.5	262,262,939	12.5
Nominees, fiduciaries	427	0.2	827,554,596	39.3
Unregistered			779,941,533	37.0
Total	182,841	100.0	2,105,273,286	100.0

Switzerland	164,012	89.7	445,735,841	21.2
Europe	13,448	7.3	468,341,140	22.2
North America	1,739	1.0	384,784,813	18.3
Other countries	3,642	2.0	26,469,959	1.3
Unregistered			779,941,533	37.0
Total	182,841	100.0	2,105,273,286	100.0