1 To be or not to be in France ? That is NOT the question !

2 Corporate Profile  Clients and investors are 100% French.  Sales and research platform for private banking and corporate banking (120 staff)  Private banking distribution over private customers through Paris and provincial branches (300 staff).  Limited activities in financial markets (50 staff).

3 Brief Overview  1987 : SG Warburg : 100% UK merchant bank, takes over Backwallin, a top-notch French stockbroker, also active in M&A and « SVT ».  1995 : SBC takes over SG Warburg.  1998 : Merger UBS – SBC. Choice of SBC structure  1999 – 2004 : development of Wealth Management business through provincial branches.  2004 : Transfer of back-offices to London.

4 Why UBS came to France…  Historic presence in France due to the various mergers.  Overall international strategy.  Intrinsic Market strength : France = 15 % of the EU : second continental economy.  Geographical and cultural proximity with French clients and banks.  UBS in France = 10% UBS in Europe.

5 Corporate values  International culture relying upon global recruitment policy : fluent English, no favoured diploma, fondness for travels.  No typical French values but full compliance with UBS values and image (e.g. Internet Charter).  Centralised control of remunerations, unlike previous period.  Historical constraints in Paris :longstanding presence of the management team, hence need for more identity and dialogue.

6 Non Deciding Constraints  Working costs : actually borne by staff; labour cost/ salary ratio leveled off wherever the Firm is settled.  Trade Unions : actually less powerful and quarrelsome than in Anglo Saxon countries.  Taxes : lobbying carried out by French banks.  Regulation : French AMF depends on UE decisions  harmonized regulation.

7 Market Constraints  Limited prospects on Equity Products due to high concentration of the French market players.  « Cold money », customer loyalty.  Little permeability to new products and newcomers on the market place.  Bridled innovation in creation of start- up companies.

8 Real Cultural Constraints  Lower pricing of Financial services.  Mitigated/poor image of the Banking Industry.  Slow innovation for establishing new companies : bureaucratic behaviour.  Paris less international than London. Comparatively few expatriates as a result of intricated administrative procedures.

9 Key Benefits  Large population  large market place, easy to operate.  Staff’s loyalty and strong team spirit.  Traditional image of France.  Good technology.  High quality Public infrastructures.  Good social security system (albeit mostly public with little room for private products).  Very good education system (maths, computing) but growing expatriation.

10 Key Advise : Take it easy …  Settling down in France is not a problem. Irrelevant theory of the «French decline».  Paris seen as buffer between HQ and French operations.  France is an open country in the most open area of the planet.  A Private Banking group is not country- driven but business-driven : primary focus on market potential.

11 Special Thanks to  Mr Tibi, CEO UBS France  Mr Fine, HR Director UBS France  Mrs Bonfante, Deontology Adviser UBS Europe  Mr Segalla, Best in France Coordinator HEC School of Management