Annual General Meeting 2006


Item 1: Annual Report, Group and Parent Company Accounts for Financial Year 2005 Reports of the Group and Statutory Auditors

A. Motion
The Board of Directors proposes that the Report on the Financial Year 2005 and the Group and Parent Company Accounts for 2005 be approved.

B. Explanations
The reports of the Board of Directors and the Group Executive Board on the financial year 2005 are contained in the "Financial Report". Additional information on the strategy, organization and activities of the Group and the Business Groups, as well as on risk management and control may be found in the "Handbook 2005 / 2006". The Handbook also contains comprehensive information relating to corporate governance as required by the SWX Swiss Exchange Directive, including the report on senior executive compensation. Shareholders may order copies of these publications with the company, which are also available on the internet at / investors. Shareholders registered in the Share Register in Switzerland will receive these publications as per their individual orders. Shareholders in the USA, who are registered with Mellon Investor Services will receive a copy of the Annual Review, which contains the most important information relating to performance in 2005.

The Group income statement shows a total operating income of CHF 50,975 million and total operating expenses of CHF 37,926 million, resulting in an operating profit from continuing operations before tax of CHF 13,049 million and a net profit attributable to UBS shareholders of CHF 14,029 million. The Financial Businesses (excluding Industrial Holdings) achieved a net profit attributable to UBS shareholders of CHF 13,517 million. Total consolidated assets increased by CHF 323.2 billion to reach a new total of CHF 2,060.3 billion. Equity attributable to UBS shareholders totalled CHF 44.3 billion.

Parent Company net profit was CHF 13,497 million. Total operating income of CHF 26,462 million and total operating expenses of CHF 15,112 million resulted in an operating profit of CHF 11,350 million. Depreciations, write-offs and provisions amounted to CHF 1,292 million, extraordinary income to CHF 5,274 million, and taxes to CHF 1,835 million.

In its reports to the Annual General Meeting, Ernst & Young Ltd., as Group and Statutory Auditors, recommended without qualification that the Group and Parent Company Accounts be approved. The Group Auditors confirm that in their opinion the Group Financial Statements accurately reflect the consolidated financial position of UBS AG and the consolidated results of operations and cash flows, in conformity with the International Financial Reporting Standards (IFRS) and that they comply with Swiss law. With respect to the Parent Company, the Statutory Auditors confirm that the accounting records and financial statements and the proposal of the Board of Directors relating to the proposed appropriation of available earnings comply with Swiss law and with the Articles of Association of UBS AG.