Industrial Holdings

Income statement

	For the year ended or as at

CHF million, except where indicated	31.12.05	31.12.04 ¹

Continuing operations
Total operating income	11,079	6,440
Total operating expenses	10,222	5,975
Operating profit from continuing operations before tax	857	465
Tax expense	253	120
Net profit from continuing operations	604	345

Discontinued operations
Profit from discontinued operations before tax	124	140
Tax expense	9	32
Net profit from discontinued operations	115	108

Net profit	719	453
Net profit attributable to minority interests	207	93
from continuing operations	202	93
from discontinued operations	5	0
Net profit attributable to UBS shareholders	512	360
from continuing operations	402	252
from discontinued operations	110	108
Personnel (full-time equivalents)	21,636	29,453

¹ Results for Motor-Colombus include the six month period beginning on 1 July 2004.

Business and structure

On 31 December 2005, the Industrial Holdings segment consisted of UBS’s private equity investments and Motor-Columbus, a financial holding company whose only significant asset is a 59.3% interest in the Atel Group, a European energy provider.

In late September 2005, UBS signed agreements to sell its 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). At the end of February, the European Commission and the Swiss Competition Commission have cleared the acquisition of the participation held by UBS. At the date of the print order of this annual report (8 March 2006), the transaction is expected to be completed as soon as all contractual conditions have been met and the boards of the buyers have passed the appropriate resolutions.

In first quarter 2005, our private equity investments, previously within the Investment Bank, were moved to the Industrial Holdings segment. This represents a further step in our strategy of de-emphasizing and reducing exposure to this asset class while capitalizing on orderly exit opportunities when they arise.

It also adds transparency to our accounts as it helps us to more clearly separate our core financial businesses from the stakes held in industrial holdings.