Industrial Holdings

Income Statement
	For the year ended or as of
CHF million, except where indicated	31.12.06	31.12.05

Continuing operations
Total operating income	994	1,236
Total operating expenses	716	751
Operating profit from continuing operations before tax	278	485
Tax expense	35	175
Net profit from continuing operations	243	310

Discontinued operations
Operating profit from discontinued operations before tax	852	496
Tax expense / (benefit)	(13)	87
Net profit from discontinued operations	865	409

Net profit	1,108	719
Net profit attributable to minority interests	104	207
from continuing operations	1	(24)
from discontinued operations	103	231
Net profit attributable to UBS shareholders	1,004	512
from continuing operations	242	334
from discontinued operations	762	178
Personnel (full-time equivalents)	4,241	21,636

Business

The Industrial Holdings segment comprises UBS's private equity investments, which were, until early 2005, held within the Investment Bank. Our strategy is to de-emphasize and reduce exposure to this asset class while capitalizing on orderly exit opportunities as they arise.

Organizational changes

On 23 March 2006, we sold UBS's 55.6% stake in Motor-Columbus to a consortium of Atel's Swiss minority shareholders, EOS Holding and Atel, as well as to French utility Electricité de France (EDF). The stake was sold for CHF 1,295 million, which resulted in a pre-tax gain of CHF 364 million for UBS. Motor-Columbus is a financial holding company whose only significant asset is a 59.3% interest in the Atel Group, a European energy provider.