Item 1

Annual report, Group and Parent Bank accounts for financial year 2009
Reports of the statutory auditors

1.1. Approval of annual report and Group and Parent Bank accounts

A. Motion
The Board of Directors proposes that the report on the financial year 2009 and the Group and Parent Bank accounts for 2009 be approved.

B. Explanations
The reports of the Board of Directors and the Group Executive Board on the financial year 2009 are contained in the “Financial information”. Additional information on the strategy, organization and activities of the Group and the business divisions, as well as on risk management and control, may be found in the respective sections of the annual report, “Strategy, performance and responsibility”, “Risk and treasury management” and “UBS business divisions and Corporate Center“. Information relating to corporate governance as required by the SIX Swiss Exchange Directive on Corporate Governance and the Swiss Code of Obligations can be found in the respective section of the annual report 2009 “Corporate governance and compensation”. These reports are also available on the Internet at Shareholders registered in the share register in Switzerland will receive the respective reports as per their individual orders. Shareholders in the US who are registered with BNY Mellon Shareowner Services will receive a copy of the review 2009, which contains the most important information relating to UBS AG's performance in 2009.

The Group income statement shows total operating income of CHF 22,601 million and total operating expenses of CHF 25,162 million, resulting in an operating loss from continuing operations before tax of CHF 2,561 million and a net loss attributable to UBS shareholders of CHF 2,736 million. Total consolidated assets decreased by CHF 674.3 billion to reach a new total of CHF 1,340.5 billion at 31 December 2009. Equity attributable to UBS shareholders totaled CHF 41.0 billion.

Parent Bank net loss was CHF 5,041 million. Total operating income of CHF 11,759 million and total operating expenses of CHF 13,522 million resulted in an operating loss of CHF 1,763 million. Depreciation, write-offs and provisions amounted to CHF 3,837 million and extraordinary income to CHF 688 million. Extraordinary expenses totaled CHF 49 million and the tax expense amounted to CHF 80 million.

In their reports to the Annual General Meeting, Ernst & Young Ltd., Basel, as statutory auditors, recommended without qualification that the Group and Parent Bank accounts be approved. The statutory 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 Bank, 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 results comply with Swiss law and with the Articles of Association of UBS AG.

1.2. Advisory vote on the compensation report 2009

A. Motion
The Board of Directors proposes that the compensation report 2009 be ratified in a non-binding advisory vote.

B. Explanations
The compensation report 2009 is a chapter in the annual report 2009. It explains the governance and principles behind the compensation structure at UBS AG, including the link between pay and performance and the changes implemented for 2009. It also sets out the compensation of management and of the Board of Directors as required under the Swiss Code of Obligations. Lastly, it contains the revised total reward principles for all employees, which were reviewed by the Group Executive Board and by the Board of Directors' Human Resources and Compensation Committee and were approved by the Board of Directors on 28 September 2009.

The vote on the compensation report 2009 of UBS AG is non-binding and advisory in nature.