UBS KeyInvest For UBS Marketing Purposes

Value Investing: Following the tracks of well-known super

Open End Index Certificate on the UBS Open End Index Solactive Value Total Return (TR) Index (USD) Certificate WKN / ISIN I. In good company: Respected Value Investors UBS2SV / DE000UBS2SV5

An in the Open End Index Certificate on the Solactive Value Investor Total Return (TR) Index (USD) enables to follow the tracks of highly respected investors with a proven track record. The underlying index initially comprises 14 of investment holding companies managed by selected institutional investors. All of the investors considered in the index operate successfully on the market for decades while pursuing a strategy. Initial Country Allocation

Sweden Belgium 10.0% 10.0% II. At a level with investment legends Canada 8.7% Hong Kong 20.0% The Open End Index Certificate on the Solactive Value Investor (TR) Index (USD) makes it possible to participate in the investment skills of experienced investors. The most popular representative of the value investing approach is probably Warren Buffett, also known as the “Oracle of Omaha”. His holding company Berkshire Hathaway is one of the companies included in the underlying index. However he is not the only USA 51.3% value investor operating successfully for the last years. Other famous examples are Albert Frère and his holding company Groupe Bruxelles Lambert (GBL) or Li Ka-Shing. The selection of the index constitu- Li Ka-Shing controls via his investment companies Hutchison Whampoa and Cheung ents is global with a focus on the Kong the majority of the companies listed on the exchange in Hong Kong. The USA and Hong Kong. global fund manager Invesco, also a constituent of the index, pursues a value- oriented investment strategy as well. Data as of 24.07.2012 Source: Structured Solutions, UBS Value investors are permanently looking for undervalued stocks. Another common characteristic of value investors is their long-termed investment horizon. Warren Buf- fet explains for instance, that an investment you are not willing to hold for 5 years, is not worth owning for 5 minutes. The same attitude can be observed within the Swedish Wallenberg-Family who is managing its family assets since 1916 through the Investor Profile holding company Investor AB. Likewise, the 100-year old Canadian Brookfields Asset A Solution for investors with Management invests primarily in office real estate, renewable energies and forests in semi to increased risk toler- order to increase their assets in the long run. ance, who would like to profit with relatively little capital expenditure and administra- III. Product Facts tion effort from the perform- ance of all shares included in The Open End Index Certificate on the Solactive Value Investor TR Index (USD) tracks the index. the performance of the underlying Index – after deduction of a management fee of 1.35% p.a. – without fixed maturity on a one-to-one basis.

IV. Long-term investment with clear guidelines Index Composition

As the Open End Index Certificate on the Solactive Value Investor TR Index (USD) has no Investor Company Index fixed maturity, the long-term investment approach of value investors is represented in Weighting Warren Berkshire the certificate. The index is adjusted on a regular basis. Consequently investors can par- 10.0% Buffett Hathaway ticipate in the index development over a long period of time by conducting a single Groupe Brux- transaction. Albert Frère elles Lambert 10.0% (GBL) Wallenberg- A yearly rebalancing of the index ensures that the composition and weighting of the Investor AB 10.0% Family index components always comply with the selection criteria. As a result, holding compa- Hutchison Li Ka-Shing 10.0% nies included in the index will be committed regularly to the value investing approach Whampoa Cheung Kong and have at least a of EUR 200 million. The individual index com- Li Ka-Shing 10.0% ponents are weighted by their respective market capitalization. Each component may Holding Neil Wood- constitute at most 10 percent of the index at the date of rebalancing. ford, Wilbur Invesco Ltd. 10.0% Ross Frank J. Brookfield Asset 10.0% V. Diversification – not only due to the index McKenna Management Fairfax Financial Prem Watsa 8.7% Holdings With the launch of the index the Index Sponsor identified 14 companies that fulfil all Leucadia Na- Ian Cumming 6.8% selection criteria. However the number of index components is limited to 25 companies. tional TRW Automo- The diversification of the index is reinforced by the fact that all stocks represent holding Brian Rogers 4.7% companies that are themselves diversified through a widely spread investment portfolio. tive Holdings Tom Gayner Markel 3.9% Icahn Enter- Carl Icahn 3.8% prises Gamco Inves- VI. Fundamentals of Value Investing Mario Gabelli 1.3% tors David Ein- Greenlight 0.9% The two most important variables for value investors are value and price. Their aim is to horn Capital find companies that cost less than they are actually worth. While the actual purchase price is easy to determine, the critical point for all value investors is to define the effec- Data as of 24.07.2012 tive value of the company. The traditional approach, founded by Benjamin Graham in his Source: Structured Solutions, UBS book “The Intelligent Investor” focuses on the book value of the company. In addition to favourable valuations many successful investors concentrate on quality criteria, as for example business model, management or competitive position. An advice from Warren Buffett, an avowed value investor and one of Graham’s students, is to invest only in companies whose business model one really understands.

VII. Investment Opportunities

 Full participation in the investment companies that committed themselves to a value-oriented investment strategy.  Automatic selection of listed holding companies of highly respected investors as Warren Buffett, the Wallenberg-Family, Li Ka-Shing or Albert Frère.  The index will be rebalanced on a yearly basis in order to reflect changing market conditions.  The certificate has no fixed maturity (Open End) and is therefore well suited to longer-term investment horizons.  Index-based diversification through mapping of at most 25 investment companies whose investment portfolio itself is al- ready diversified to a huge extend.  Easy and flexible: UBS Open End Index Certificates in general can be bought and sold on each trading day.

VIII. Risk Assessment

 The Investor bears the risk of losses if the stock prices of the included companies decline (no capital protection).  The index performance substantially depends on the development of the listed holding companies and their investment portfolios. This means that an unfavourable development can lead to a fall in the value of the certificate.  The issuer intends to provide (off-exchange) liquidity on every exchange trading day during normal market trading hours. Investors should, however, be aware that selling of the certificate may not be possible at all times.  The Investor is exposed to the credit/insolvency risk of the respective issuer and can therefore lose the investment in the case of an issuer default/insolvency (detailed information on the issuer is provided in the Securities Prospectus, which is available free of charge from the issuer or another notified body).  Currency Risk: As index constituents are nominated in another currency than the currency of the index and the certificate, both nominated in US-Dollar, exchange-rate fluctuations can have a negative impact on the performance of the certificate.  The issuer has an early redemption right under certain conditions. Further information is provided in the Securities Pro- spectus. IX. Product Facts

Underlying Solactive Value Investor Total Return Index (USD) WKN / ISIN UBS2SV / DE000UBS2SV5 Product Type Open End Certificate Issuer (Rating) UBS AG, London (A2 / A / A) Lead Manager UBS Limited Issue Price 100.00 USD per Certificate Subscription Period 06 September – 20 September 2012 (15:00 hrs CET) Fixing Date 20 September 2012 (closing) Currency Hedging No Management Fee 1.35% p.a. Recurring Retrocession 1.00% p.a. (already included in the Management Fee) Listing Frankfurt (Scoach)

X. Information about yield disclosures

Actual costs such as fees, commissions and other charges, which are not affiliated with the issuer or the intermediary, are excluded and can negatively affect re- turns. Example given: For an investment of e.g. 1,000 euro, yearly charges for administration and safekeeping (e.g. 0.5% p.a., incl. VAT) as well as on-time transac- tion charges for every purchase or sale (e.g. 1%) should be taken into account. The gross performance in this example is reduced through these charges by 0.9% p.a., assuming a five year holding period (actual holding period may vary depending on the product and the investors investment horizon).

The actual, generally valid or individually negotiated charges are given by the price and service list, respective of the individual contract of/with your bank(s) and/or broker(s). They may alter the given example. Please consult with your bank/broker prior to your purchase regarding the actual costs and charges.

XI. Additional Information

- Respective Termsheet - Respective Final Terms - Respective Base Prospectus (together with any addendums and the Final Terms: the Securities Prospectus)

This material is for distribution only under such circumstances as may be permitted by applicable law. It does not take into account the specific investment objec- tive, financial situation or particular needs of any recipient. It is published solely for information purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. Unless specifically stated otherwise in writing UBS does not act as an investment adviser or trustee.

The materials are based on information obtained from sources believed to be reliable. However, no representation or warranty, express or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, nor is it intended to be a complete statement or summary of the securities, markets or developments referred to in the materials. It should not be regarded by recipients as a substitute for the exercise of their own judgment. Any opinions expressed in this material are subject to change without notice and may differ or be contrary to opinions expressed by other business areas or groups of UBS as a result of using different assumption and criteria. UBS is under no obligation to update or keep current the information contained herein.

UBS, its affiliates, directors, officers and employees or clients may have or have had interests or long or short positions in the securities or other financial instru- ments referred to herein and may at any time make purchases and/or sales in them as principal or agent. UBS may act or have acted as market-maker in the securi- ties or other financial instruments discussed in this material. Furthermore, UBS may have or have had a relationship with or may provide or has provided investment banking, capital markets and/or other financial service to the relevant companies. Neither UBS nor any of its affiliates, directors, employees or agents accept any liability for any loss or damage arising out of the use of all or any part of this material. Options, derivative products and futures are not suitable for all investors, and trading in these instruments is considered risky. Past performance is not necessarily indicative of future results. Foreign currency rates of exchange may adversely affect the value, price or income of any security or related instrument mentioned in this presentation. Prior to entering into a transaction you should consult with your own legal, regulatory, tax, financial and accounting advisers to the extent you deem necessary to make your own investment, hedging and trading decisions.

Any transaction between you and UBS will be subjected to the detailed provisions contained in the legally binding document (the “Securities Prospectus”) relating to that transaction. Clients wishing to effect transaction should contact their local sales representative. Except for those as explicitly stated in the Securities Prospec- tus, no additional steps will be taken in any jurisdiction that would permit a public offering of the securities described herein. In case of any intended sale, all appli- cable selling restrictions in the relevant jurisdictions have to be regarded.

Not for distribution in the United Kingdom, the United Sates or to U.S. persons. For detailed information about the terms and conditions as well as additional risk information please consult the Securities Prospectus which can be provided upon request by UBS Deutschland AG, P.O. 102042, 60020 Frankfurt/Main, Germany.

This document may not be altered, copied or reproduced without UBS Deutschland AG’s prior written permission. UBS Deutschland AG specifically prohibits the redistribution of this material and accepts no liability whatsoever for the actions of third parties in this respect.

© UBS 1998-2012. All rights served.

For UBS marketing purposes only Data as of September 2012

The Fact Sheet is written in the German language and provided with a separate English language translation. The German text shall be controlling and binding. The English language translation is provided for convenience only.

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