

Capital instruments of UBS Group AG (consolidated) and UBS AG (consolidated and standalone) as of 31 March 2016

Key features Ordered by issuance date within each category Based on Swiss SRB Basel III phase-in requirements Issued on 4 May 2016

Share capital Additional Tier 1 capital instruments (Basel III compliant) Additional Tier 1 capital / instruments in the form of hybrid instruments and related subordinated notes (non-Basel III compliant)

UBS Group AG, Switzerland, or other employing UBS Group AG, Switzerland, or other UBS Preferred Funding Trust IV UBS AG, Switzerland UBS Preferred Funding Trust V UBS AG, Switzerland 1 Issuer (country of incorporation; if applicable, branch) UBS Group AG, Switzerland UBS AG, Switzerland UBS Group AG, Switzerland UBS Group AG, Switzerland UBS Group AG, Switzerland UBS Group AG, Switzerland UBS AG, Switzerland UBS Group AG, Switzerland UBS AG, Switzerland entities of the Group employing entities of the Group Delaware, US Cayman branch Delaware, US Cayman branch

1a Instrument number 001 002 003 004 005 006 007 008 009 010 011 012 013 014 015 2 Unique identifier (e.g. ISIN) ISIN: CH0244767585 ISIN: CH0024899483 - ISIN: CH0271428309 ISIN: CH0271428317 ISIN: CH0271428333 ISIN: CH0286864027 - - ISIN: CH0317921697 - ISIN: US90263W2017 - ISIN: US90264AAA79 - 3 Governing law(s) of the instrument Swiss Swiss Swiss / NY, US Swiss law Swiss law Swiss law Swiss law Swiss law Swiss / NY, US Swiss law Swiss law Delaware, US NY, US Delaware, US NY, US Regulatory treatment 4 Transitional Basel III rules Common Equity Tier 1 Common Equity Tier 1 Additional Tier 1 Additional Tier 1 Additional Tier 1 Additional Tier 1 Additional Tier 1 Additional Tier 1 Additional Tier 1 Additional Tier 1 Additional Tier 1 Additional Tier 1 Tier 2 Additional Tier 1 Tier 2 5 Post-transitional Basel III rules Common Equity Tier 1 Common Equity Tier 1 Additional Tier 1 Additional Tier 1 Additional Tier 1 Additional Tier 1 Additional Tier 1 Additional Tier 1 Additional Tier 1 Additional Tier 1 Additional Tier 1 Ineligible Ineligible Ineligible Ineligible

UBS AG (consolidated), UBS AG UBS Group AG (consolidated) and UBS AG UBS Group AG (consolidated) and UBS AG 6 Eligible at solo/group/group&solo UBS Group AG (consolidated) UBS Group AG (consolidated) UBS Group AG (consolidated) UBS Group AG (consolidated) UBS Group AG (consolidated) UBS Group AG (consolidated) UBS AG (consolidated and standalone) UBS Group AG (consolidated) UBS Group AG (consolidated) UBS AG (consolidated and standalone) UBS AG (standalone) UBS AG (standalone) (standalone) (consolidated) (consolidated)

Contingent payment / security Contingent cash payment / security delivery Trust preferred securities Trust preferred securities 7 Instrument type Ordinary shares Ordinary shares Tier 1 Capital Notes Tier 1 Capital Notes Tier 1 Capital Notes Tier 1 Capital Notes Loan (6) delivery obligation towards employees Tier 1 Capital Notes Loan (6) Subordinated note Subordinated note obligation towards employees (DCCP) (hybrid instruments) (hybrid instruments) (DCCP) Amount recognized in regulatory capital (Currency in mil, 8 CHF 385.0 (2) CHF 385.8 (2) CHF 465.9 CHF 1,110.7 CHF 1,224.4 CHF 1,249.7 CHF 1,594.2 CHF 1,201.5 CHF 494.8 CHF 1,445.7 CHF 1,441.8 CHF 287.9 CHF 287.9 CHF 961.2 CHF 961.2 as of most recent financial reporting date) 9 Outstanding amount (par value, million) CHF 385.0 (3) CHF 385.8 (3) CHF 465.9 (4) EUR 1,000 USD 1,250 USD 1,250 USD 1,575 USD 1,250 CHF 494.8 (4) USD 1,500 USD 1,500 USD 300 USD 300 USD 1,000 USD 1,000 Not part of the consolidation scope of UBS Not part of the consolidation scope of UBS Equity attributable to UBS Group Equity attributable to UBS AG Equity attributable to preferred 10 Accounting classification (1) Other liabilities Debt issued held at amortized cost Debt issued held at amortized cost Debt issued held at amortized cost Debt issued held at amortized cost Due to customers Other liabilities Debt issued held at amortized cost Due to customers Group AG's or UBS AG's financial statements Group AG's or UBS AG's financial statements Equity attributable to preferred noteholders AG shareholders shareholders noteholders under IFRS (8) under IFRS (8) 11 Original date of issuance - - 31 December 2014 (5) 19 February 2015 19 February 2015 19 February 2015 07 August 2015 26 November 2015 (7) 31 December 2015 (5) 21 March 2016 21 March 2016 23 May 2003 23 May 2003 12 May 2006 12 May 2006 12 Perpetual or dated - - Perpetual (4) Perpetual Perpetual Perpetual Perpetual Perpetual Perpetual (4) Perpetual Perpetual Perpetual Perpetual Perpetual Perpetual 13 Original maturity date ------14 Issuer call subject to prior supervisory approval - - Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

First redemption date: 15 May 2016 First optional redemption date: 19 February First optional redemption date: 19 February First optional redemption date: 19 February First optional redemption date: 22 March First optional redemption date: 22 March First redemption date: 15 June 2008 First call date: 1 March 2021 2022 2020 First optional redemption date: 19 February 2025 First optional redemption date: 7 August 2025 2020 2021 2021 Subsequent optional redemption dates: on the First call date: 1 March 2020 Subsequent optional redemption dates: on the first business day on or after 15 August, 15 First redemption date: 15 May 2016 At the issuer's sole and absolute First redemption date: 15 June 2008 Subsequent optional redemption dates: Any Subsequent optional redemption dates: Any Subsequent optional redemption dates: Any other Subsequent optional redemption dates: Any other Subsequent optional redemption dates: Any Subsequent optional redemption dates: Any Subsequent optional redemption dates: first business day on or after the 15th of each November, 15 February and 15 May of each At the issuer's sole and absolute discretion, discretion, settlement by means of either other Interest Payment Date after the First Call other Interest Payment Date after the First Call Interest Payment Date after the First Call Date Interest Payment Date after the First Call Date other Interest Payment Date after the First Call other Interest Payment Date after the First Any other Interest Payment Date after the month year Subsequent optional redemption dates: on settlement by means of either (i) payment of a (i) payment of a cash amount equal to the Subsequent optional redemption dates: on Date Date Date Call Date First Call Date the first business day on or after 15 August, Optional call date, subsequent call dates, if applicable, cash amount equal to the value of the Notional value of the Notional Bond, or (ii) transfer the first business day on or after the 15th 15 - - Subject to satisfaction of Conditions for Subject to satisfaction of Conditions for Redemption price: 100% of the liquidation Redemption price: 100% of the liquidation 15 November, 15 February and 15 May of and redemption amount Bond, or (ii) transfer of perpetual AT1 instruments of perpetual AT1 instruments in such of each month Subject to satisfaction of Conditions for Subject to satisfaction of Conditions for Redemption Redemption Subject to satisfaction of Conditions for Subject to satisfaction of Conditions for Subject to satisfaction of Conditions for preference; plus unpaid dividends with respect preference; unpaid dividends with respect to the each year in such amount equivalent to the value of, and on amount equivalent to the value of, and on Redemption Redemption Redemption Redemption Redemption to the current dividend period (whether or not current dividend period (whether or not substantially the same terms and conditions of, substantially the same terms and Redemption price: 100% of principal Redemption amount: Aggregate principal Redemption amount: Aggregate principal declared); and unpaid definitive dividends for declared); and unpaid definitive dividends for Redemption price: 100% of principal the Notional Bond (in both cases, net of conditions of, the Notional Bond (in both amount plus accrued but unpaid interest Redemption amount: Aggregate principal Redemption amount: Aggregate principal amount, together with any accrued and unpaid amount, together with any accrued and unpaid Redemption amount: Aggregate principal Redemption amount: Aggregate principal Redemption amount: Aggregate principal any prior dividend period, without interest and any prior dividend period, without interest and amount plus accrued but unpaid interest applicable taxes and social securities contributions) cases, net of applicable taxes and social amount, together with any accrued and unpaid amount, together with any accrued and unpaid interest thereon interest thereon amount, together with any accrued and amount, together with any accrued and amount, together with any accrued and without accumulation of unpaid nondefinitive without accumulation of unpaid nondefinitive securities contributions) interest thereon interest thereon unpaid interest thereon unpaid interest thereon unpaid interest thereon dividends for any prior dividend period dividends for any prior dividend period

Redeemable in case of a Tax Event, an Investment Company Act Event or a Capital Early redemption possible due to a Tax or Early redemption possible due to a Tax or Redeemable in case of a Tax Event, an Redeemable in case of a Tax Event, an Event Regulatory Event. Subject to satisfaction of Regulatory Event. Subject to satisfaction of Investment Company Act Event or a Capital Investment Company Act Event or a Capital Conditions for Redemption. Redemption Conditions for Redemption. Redemption amount: Event Early redemption possible due to a Tax or Early redemption possible due to a Tax or Early redemption possible due to a Tax or Event Redemption price: in case of a Tax Event amount: aggregate principal amount, together aggregate principal amount, together with Redeemable in case of a Tax Event, an Regulatory Event. Subject to satisfaction of Regulatory Event. Subject to satisfaction of Regulatory Event. Subject to satisfaction of Early redemption possible due to a Tax or Early redemption possible due to a Tax or resulting from a Change in Tax Law, same as for with accrued and unpaid interest accrued and unpaid interest Investment Company Act Event or a Redemption price: in case of a Tax Event Conditions for Redemption. Redemption Conditions for Redemption. Redemption amount: Conditions for Redemption. Redemption Regulatory Event. Subject to satisfaction of Regulatory Event. Subject to satisfaction of Redemption price: 100% of the liquidation optional redemptions. In case of other Tax Capital Event resulting from a Change in Tax Law, same 16 Contingent call dates and redemption amount - - - amount: aggregate principal amount, together aggregate principal amount, together with amount: aggregate principal amount, together - Conditions for Redemption. Redemption Conditions for Redemption. Redemption preference; plus unpaid dividends with respect Events, an Investment Company Act Event or a Early redemption possible upon a Change in Early redemption possible upon a Change in as for optional redemptions. In case of other with accrued and unpaid interest accrued and unpaid interest with accrued and unpaid interest amount: aggregate principal amount, amount: aggregate principal amount, to the current dividend period (whether or not Capital Event, redemption price equal to the Progressive Capital Component Requirement. Progressive Capital Component Requirement. Redemption price: 100% of principal Tax Events, an Investment Company Act together with accrued and unpaid interest together with accrued and unpaid interest declared); and unpaid definitive dividends for Make Whole Amount, unpaid dividends for the Subject to satisfaction of Conditions for Subject to satisfaction of Conditions for amount plus accrued but unpaid interest Event or a Capital Event, redemption price any prior dividend period, without interest and current dividend period (whether or not Redemption. Redemption amount: 101% of Redemption. Redemption amount: 101% of equal to the Subordinated Note Make without accumulation of unpaid nondefinitive declared) and unpaid definitive dividends for aggregate principal amount, together with aggregate principal amount, together with Whole Amount and accrued but not paid dividends for any prior dividend period any prior dividend period, without interest and accrued and unpaid interest accrued and unpaid interest interest without accumulation of unpaid nondefinitive dividends for any prior dividend period

Coupons / dividend 17 Fixed or floating dividend / coupon - - Fixed Fixed / Floating from 19 February 2022 Fixed / Floating from 19 February 2020 Fixed / Floating from 19 February 2025 Fixed / Floating from 7 August 2025 Fixed / Floating from 19 February 2020 Fixed Fixed / Floating from 22 March 2021 Fixed / Floating from 22 March 2021 Floating Floating Fixed / Floating from 15 May 2016 Fixed / Floating from 15 May 2016

7.125% / Reset Interest Rate, in each case plus Issues in CHF: 4.15%; issues in USD: 6.875% / Reset Interest Rate, in each case Coupon rate and any related index; Issues in CHF: 4%; issues in USD: 7.125%; 5.75% / Reset Interest Rate; 7.125% / Reset Interest Rate; 7.00% / Reset Interest Rate; 6.875% / Reset Interest Rate; 6.875% / Reset Interest Rate; 1-month USD LIBOR + 0.70%; 1-month USD LIBOR + 0.70%; 6.243% / 3-month USD LIBOR +1.615%; 6.243% / 3-month USD LIBOR +1.615%; 18 - - 0.255%; 7.35%; plus 0.25%; frequency of payment annually annually annually annually annually annually monthly monthly semi-annually / quarterly semi-annually / quarterly annually annually annually 19 Existence of a dividend stopper - - No Yes Yes Yes Yes Yes No Yes Yes No No No No

20 Fully discretionary, partially discretionary, or mandatory Fully discretionary Fully discretionary Fully discretionary Fully discretionary Fully discretionary Fully discretionary Fully discretionary Fully discretionary Fully discretionary Fully discretionary Fully discretionary Partially discretionary Partially discretionary Partially discretionary Partially discretionary 21 Existence of step up or other incentive to redeem - - No No No No No No No No No No No Yes Yes 22 Noncumulative or cumulative Noncumulative Noncumulative Noncumulative Noncumulative Noncumulative Noncumulative Noncumulative Noncumulative Noncumulative Noncumulative Noncumulative Noncumulative Noncumulative Noncumulative Noncumulative 23 Convertible or non-convertible - - Nonconvertible Nonconvertible Nonconvertible Nonconvertible Nonconvertible Nonconvertible Nonconvertible Nonconvertible Nonconvertible Nonconvertible Nonconvertible Nonconvertible Nonconvertible 24 If convertible, conversion trigger(s) ------25 If convertible, fully or partially ------26 If convertible, conversion rate ------27 If convertible, mandatory or optional conversion ------28 If convertible, specify instrument type convertible into ------If convertible, specify issuer of instrument it converts - 29 ------into - 30 Write-down feature - - Yes Yes Yes Yes Yes Yes Yes Yes Yes - Yes - Yes - Reported phase-in Basel III CET1 ratio of - With respect to any Publication Date, - Reported phase-in Basel III CET1 ratio of the - With respect to any Publication Date, Trigger - With respect to any Publication Date, Trigger - With respect to any Publication Date, Trigger - With respect to any Publication Date, Trigger the Group is less than 7% / 10%; or - With respect to any Publication Date, - With respect to any Publication Date, Trigger Trigger CET1 Ratio is less than 7%; Group is less than 7% / 10%; or CET1 Ratio is less than 5.125%; CET1 Ratio is less than 7%; CET1 Ratio is less than 5.125%; CET1 Ratio is less than 7%; - FINMA determines a write-down is Trigger CET1 Ratio is less than 7%; CET1 Ratio is less than 7%; - FINMA determines a write-down necessary - FINMA determines a write-down is required to - FINMA determines a write-down necessary to - FINMA determines a write-down necessary to - FINMA determines a write-down necessary to - FINMA determines a write-down necessary to required to prevent UBS Group AG's - FINMA determines a write-down - FINMA determines a write-down necessary to to ensure UBS Group AG's viability; or UBS prevent UBS Group AG's insolvency, bankruptcy ensure UBS Group AG's viability; or UBS Group ensure UBS Group AG's viability; or UBS Group ensure UBS Group AG's viability; or UBS Group ensure UBS Group AG's viability; or UBS Group insolvency, bankruptcy or failure; or UBS necessary to ensure UBS AG's viability; or ensure UBS AG's viability; or UBS AG receives Group AG receives a commitment of - Bankruptcy Event - Bankruptcy Event 31 If write-down, write-down trigger(s) - - or failure; or UBS Group AG receives a AG receives a commitment of governmental AG receives a commitment of governmental AG receives a commitment of governmental AG receives a commitment of governmental Group AG receives a commitment of UBS AG receives a commitment of - - a commitment of governmental support that governmental support that FINMA - Capital Event - Capital Event commitment of governmental support that FINMA support that FINMA determines necessary to support that FINMA determines necessary to support that FINMA determines necessary to support that FINMA determines necessary to governmental support that FINMA governmental support that FINMA FINMA determines necessary to ensure UBS determines necessary to ensure UBS Group determines necessary to prevent UBS Group AG's ensure UBS Group AG's viability (see definition ensure UBS Group AG's viability (see definition ensure UBS Group AG's viability (see definition of ensure UBS Group AG's viability (see definition of determines necessary to prevent UBS determines necessary to ensure UBS AG's AG's viability (see definition of Viability Event). AG's viability (see definition of Viability insolvency, bankruptcy or failure. of Viability Event). of Viability Event). Viability Event). Viability Event). Group AG's insolvency, bankruptcy or viability (see definition of Viability Event). Subject to applicable conditions. Event). Subject to applicable conditions. Subject to applicable conditions. Subject to applicable conditions. Subject to applicable conditions. Subject to applicable conditions. failure. Subject to applicable conditions. Subject to applicable conditions. Subject to applicable conditions. 32 If write-down, full or partial - - Full Full Full Full Full Full Full Full Full - Full - Full 33 If write-down, permanent or temporary - - Permanent Permanent Permanent Permanent Permanent Permanent Permanent Permanent Permanent - Permanent - Permanent If temporary write-down, description of write-up 34 ------mechanism

If UBS AG is liquidated, under each UBS AG If UBS AG is liquidated, under each UBS AG Outside the occurrence of a Trigger Event Subordinated Guarantee Agreement the holders Subordinated Guarantee Agreement the holders or Viability Event, the holder under DCCP of related company preferred securities of related company preferred securities (whether Unless otherwise stated in the Outside the occurrence of a Trigger Event or Unless otherwise stated in the will have a claim ranking junior to all (whether through a UBS Preferred Funding Trust through a UBS Preferred Funding Trust or as articles of associations, once Viability Event, the holder under DCCP will have a articles of associations, once rights and claims of priority creditors of or as direct holders who have withdrawn their direct holders who have withdrawn their debts are paid back the assets of claim ranking junior to all rights and claims of debts are paid back the assets of the issuer (i.e. claims in respect of company preferred securities from a UBS company preferred securities from a UBS the liquidated company are priority creditors of the issuer (i.e. claims in respect All deposits and other liabilities of UBS AG All deposits and other liabilities of UBS AG the liquidated company are obligations of the issuer (i) that are Preferred Funding Trust) will have a claim Preferred Funding Trust) will have a claim Position in subordination hierarchy in liquidation divided between the of obligations of the issuer (i) that are Rights and claims of all holders of Senior Rights and claims of all holders of Senior Rights and claims of all holders of Senior Rights and claims of all holders of Senior Rights and claims of all holders of Senior Rights and claims of all holders of Senior Rights and claims of all holders of Senior (including those in respect of bonds, notes (including those in respect of bonds, notes divided between the shareholders unsubordinated, or (ii) that are entitling them to substantially the same entitling them to substantially the same 35 (specify instrument type immediately senior to instrument) shareholders pro rata based on unsubordinated, or (ii) that are subordinated Obligations, subject to any obligations that are Obligations, subject to any obligations that are Obligations, subject to any obligations that are Obligations, subject to any obligations that are Obligations, subject to any obligations that are Obligations, subject to any obligations that Obligations, subject to any obligations that and debentures that do not expressly rank and debentures that do not expressly rank pro rata based on their subordinated (including Tier 2 liquidating distributions in the liquidation of liquidating distributions in the liquidation of UBS their contributions and (including Tier 2 instruments) and do not, or are mandatorily preferred by law mandatorily preferred by law mandatorily preferred by law mandatorily preferred by law mandatorily preferred by law are mandatorily preferred by law are mandatorily preferred by law pari passu with the obligations of UBS AG pari passu with the obligations of UBS AG contributions and considering the instruments) and do not, or are expressly UBS AG that they would have been entitled to if AG that they would have been entitled to if they considering the preferences expressly not stated to, rank pari passu with, or under the Subordinated Note) under the Subordinated Note) preferences attached to certain not stated to, rank pari passu with, or they had purchased preferred shares of UBS AG had purchased preferred shares of UBS AG attached to certain categories of junior to, the issuer's obligations under DCCP or categories of shares (section 745, junior to, the issuer's obligations under having an aggregate liquidation preference having an aggregate liquidation preference shares (section 745, Swiss Civil any of the issuer's obligations ranking pari passu Swiss Civil Code of Obligations) DCCP or any of the issuer's obligations equal to the aggregate liquidation preference of equal to the aggregate liquidation preference of Code of Obligations) with the issuer's obligations under DCCP). ranking pari passu with the issuer's their company preferred securities and bearing their company preferred securities and bearing obligations under DCCP). dividends at the rate of dividends applicable to dividends at the rate of dividends applicable to such company preferred securities such company preferred securities

Existence of features, which prevent full recognition under 36 ------Yes Yes Yes Yes Basel III

- No point of non-viability provision - No point of non-viability provision 37 If yes, specify non-compliant features ------Same as for relevant hybrid instrument - Distributions to holders partially discretionary Same as for relevant hybrid instrument - Distributions to holders partially discretionary - Existence of a step-up

(1) As applied in UBS Group AG's or UBS AG financial statements under IFRS, except where indicated. (2) Represents amount recognized in consolidated regulatory capital of issued share capital. (3) Represents issued share capital as of most recent financial reporting date. (4) Comprised of Deferred Contingent Capital Plan (DCCP) issuances. Subject to forfeiture and vesting provisions. (5) Original date of issuance from a capital perspective. It does not correspond to grant date for employees. (6) Loan granted by UBS Group AG. (7) The relevant loan agreement with UBS Group AG has been entered into on 19 February 2015; however, the loan started counting as AT1 capital as of 26 November 2015. (8) The entity which issued this instrument is not consolidated by either UBS Group AG or UBS AG. As a consequence, there is no accounting classification to apply in the consolidated financial statements of UBS Group AG and UBS AG, and in the standalone financial statements of UBS AG. However, UBS AG has issued a preferred note which was purchased by the non-consolidated entity (see instrument described in adjacent column). This preferred note is recognized in UBS Group AG's consolidated financial statements in accordance with IFRS as equity attributable to non-controlling interests, in UBS AG's consolidated financial statements in accordance with IFRS as equity attributable to preferred note holders and in the UBS AG standalone financial statements in accordance with Swiss GAAP as a liability.

1 

Capital instruments of UBS Group AG (consolidated) and UBS AG (consolidated and standalone) as of 31 March 2016

Key features Ordered by issuance date within each category Based on Swiss SRB Basel III phase-in requirements Issued on 4 May 2016

(continued) Tier 2 capital instruments (Basel-III compliant) Tier 2 capital instruments (non-Basel III compliant)

UBS Capital Securities (Jersey) Ltd. UBS AG, Switzerland UBS AG, Switzerland UBS AG, Switzerland UBS Group AG, Switzerland, or other UBS Group AG, Switzerland, or other UBS AG, Switzerland UBS AG, Switzerland UBS AG, Switzerland UBS AG, Switzerland UBS AG, Switzerland UBS AG, Switzerland UBS AG, Switzerland 1 Issuer (country of incorporation; if applicable, branch) UBS AG, Switzerland UBS AG, Switzerland UBS AG, Switzerland UBS AG, Switzerland UBS AG, Switzerland Jersey Jersey branch Jersey branch Stamford branch employing entities of the Group employing entities of the Group NY branch Jersey branch NY branch NY branch Jersey branch Stamford branch Jersey branch

1a Instrument number 016 017 018 019 020 021 022 023 024 025 026 027 028 029 030 031 032 033 2 Unique identifier (e.g. ISIN) ISIN: XS0336744650 - ISIN: XS0747231362 ISIN: US90261AAB89 - ISIN: CH0214139930 - CH0236733827 CH0244100266 ISIN: US870836AC77 ISIN: XS0062270581 ISIN: US870845AC84 ISIN: US87083KAM45 ISIN: XS0257741834 ISIN: CH0025852440 ISIN: US90261XBY76 ISIN: XS0331313055 ISIN: CH0035789210 3 Governing law(s) of the instrument Jersey English Swiss Swiss Swiss / NY, US Swiss Swiss / NY, US Swiss Swiss NY, US English NY, US NY, US English Swiss NY, US English Swiss Regulatory treatment 4 Transitional Basel III rules Additional Tier 1 Tier 2 Tier 2 Tier 2 Tier 2 Tier 2 Tier 2 Tier 2 Tier 2 Tier 2 Tier 2 Tier 2 Tier 2 Tier 2 Tier 2 Tier 2 Tier 2 Tier 2 5 Post-transitional Basel III rules Ineligible Ineligible Tier 2 Tier 2 Tier 2 Tier 2 Tier 2 Tier 2 Tier 2 Ineligible Ineligible Ineligible Ineligible Ineligible Ineligible Ineligible Ineligible Ineligible UBS Group AG (consolidated), UBS AG UBS Group AG (consolidated), UBS Group AG (consolidated), UBS Group AG (consolidated), UBS Group AG (consolidated), UBS Group AG (consolidated), UBS Group AG (consolidated), UBS Group AG (consolidated), UBS Group AG (consolidated), UBS Group AG (consolidated), UBS Group AG (consolidated) and UBS AG UBS Group AG (consolidated), UBS AG UBS Group AG (consolidated), UBS AG UBS Group AG (consolidated), UBS AG UBS Group AG (consolidated), UBS AG 6 Eligible at solo/group/group&solo UBS AG (standalone) UBS Group AG (consolidated) UBS Group AG (consolidated) (consolidated) and UBS AG UBS AG (consolidated) and UBS UBS AG (consolidated) and UBS AG (consolidated) and UBS AG (consolidated) and UBS UBS AG (consolidated) and UBS UBS AG (consolidated) and UBS UBS AG (consolidated) and UBS AG (consolidated) and UBS UBS AG (consolidated) and UBS (consolidated) (consolidated) and UBS AG (standalone) (consolidated) and UBS AG (standalone) (consolidated) and UBS AG (standalone) (consolidated) and UBS AG (standalone) (standalone) AG (standalone) UBS AG (standalone) UBS AG (standalone) AG (standalone) AG (standalone) AG (standalone) UBS AG (standalone) AG (standalone) AG (standalone)

Preferred securities Cash payment obligation towards Cash payment obligation towards 7 Instrument type Subordinated notes Subordinated notes Subordinated notes Subordinated notes Subordinated notes Subordinated notes Subordinated debentures Subordinated bonds Subordinated debentures Subordinated debentures Subordinated notes Subordinated bonds Subordinated notes Subordinated notes Subordinated notes (hybrid instruments) employees (DCCP) employees (DCCP)

Amount recognized in regulatory capital (Currency in mil, 8 CHF 655.2 CHF 655.2 CHF 1,924.9 CHF 1,943.9 CHF 426.3 CHF 1,436.6 CHF 468.9 CHF 2,322.0 CHF 2,589.9 CHF 240.8 CHF 84.7 CHF 206.4 CHF 42.4 CHF 155.6 CHF 0.0 CHF 0.0 CHF 179.5 CHF 37.6 as of most recent financial reporting date) 9 Outstanding amount (par value, million) EUR 600 EUR 600 USD 2,000 USD 2,000 CHF 426.3 (9) USD 1,500 CHF 468.9 (9) EUR 2,000 USD 2,500 USD 250.5 GBP 61.3 USD 217.7 USD 220.4 GBP 112.7 CHF 284.1 USD 637.2 GBP 130.2 CHF 192.1 Not part of the consolidation scope of UBS Group Equity attributable to preferred Debt issued held at amortized Debt issued held at amortized Debt issued held at amortized Debt issued held at amortized Debt issued held at amortized Debt issued held at amortized Debt issued held at amortized Debt issued held at amortized Debt issued held at amortized 10 Accounting classification (1) AG's or UBS AG's financial statements under IFRS Debt issued held at amortized cost Debt issued held at amortized cost Other liabilities Debt issued held at amortized cost Other liabilities Debt issued held at amortized cost Debt issued held at amortized cost noteholders cost cost cost cost cost cost cost cost cost (8) 11 Original date of issuance 21 December 2007 21 December 2007 22 February 2012 17 August 2012 31 December 2012 (10) 22 May 2013 31 December 2013 (10) 13 February 2014 15 May 2014 21 July 1995 18 December 1995 3 September 1996 20 June 1997 21 June 2006 28 June 2006 26 July 2006 19 November 2007 27 December 2007 12 Perpetual or dated Perpetual Perpetual Dated Dated Dated Dated Dated Dated Dated Dated Dated Dated Dated Dated Dated Dated Dated Dated 13 Original maturity date - - 22 February 2022 17 August 2022 1 March 2018 (9) 22 May 2023 1 March 2019 (9) 12 February 2026 15 May 2024 15 July 2025 18 December 2025 1 September 2026 15 June 2017 21 June 2021 28 June 2016 15 July 2016 19 November 2024 27 December 2017 14 Issuer call subject to prior supervisory approval Yes Yes Yes Yes - Yes - Yes Yes No No No No No - No No -

First optional redemption date: 21 December 2017 First optional redemption date: 21 December 2017 First optional redemption date: Subsequent optional 21 June 2016 First optional redemption date: Subsequent optional redemption dates: 21 March, redemption dates: 21 March, Call date: 22 February 2017 Call date: 22 May 2018 Call date: 12 February 2021 19 November 2019 21 June, 21 September, 21 December in each year 21 June, 21 September, 21 Subsequent optional redemption December in each year Subject to satisfaction of applicable Subject to satisfaction of applicable Subject to satisfaction of applicable dates: 21 March, 21 June, 21 Subsequent optional redemption Subject to satisfaction of Redemption Conditions Optional call date, subsequent call dates, if applicable, conditions and applicable law conditions and applicable law conditions and applicable law September and 21 December in dates: 19 February, 19 May, 19 15 and to the Law ------and redemption amount Subject to satisfaction of each year August and 19 November in each Redemption Conditions Redemption price: aggregate principal Redemption price: aggregate principal Redemption price: aggregate principal year Optional Redemption Price: Liquidation Preference, amount, together with accrued and amount, together with accrued and amount, together with accrued and Optional redemption amount: plus any due and accrued but unpaid Distributions Optional Redemption Amount: unpaid interest unpaid interest unpaid interest Redemption at par together with Redemption at par together with for the then current distribution period to the Aggregate Nominal Amount, accrued interest accrued interest relevant optional redemption date, and any plus any due and accrued but Additional Amounts unpaid interest and any Additional Amounts

Early redemption possible due to a Tax Early redemption possible due to a Tax or Early redemption possible due to a Tax or Early redemption possible due to a Tax or Regulatory Event. Subject to Early redemption possible due to a Tax or Redeemable if a Preferred Regulatory Event. Subject to satisfaction Regulatory Event. Subject to satisfaction of or Regulatory Event. Subject to satisfaction of applicable conditions Regulatory Event. Subject to satisfaction of The Preferred Securities will be redeemable at the Securities Redemption Event of applicable conditions and applicable applicable conditions and applicable law. satisfaction of applicable conditions and and applicable law. Redemption applicable conditions and applicable law. The Branch will have the right option of the Issuer following the occurrence of a has occurred law. Redemption amount: aggregate Redemption amount: aggregate principal applicable law. Redemption amount: amount: aggregate principal amount, Redemption amount: aggregate principal to redeem the notes at a Tax Event or a Regulatory Event; subject to principal amount, together with accrued amount, together with accrued and unpaid aggregate principal amount, together together with accrued and unpaid amount, together with accrued and unpaid redemption price equal to satisfaction of Redemption Conditions and to the Subject to satisfaction of and unpaid interest interest with accrued and unpaid interest The Securities will be subject to The Securities will be subject to The Debentures will be subject For taxation reasons the issuer For taxation reasons the Issuer interest interest For taxation reasons, the Issuer 100% of their outstanding Law Redemption Conditions redemption at par plus accrued redemption at par plus accrued to redemption at par plus may redeem the Subordinated may redeem the Subordinated may redeem the Bonds at principal amount, together 16 Contingent call dates and redemption amount Early redemption possible upon a Change Early redemption possible upon a Change - Early redemption possible upon a - interest in the event that interest in the event that accrued interest in the event Notes at 100% of the Aggregate - Notes at 100% of the Aggregate - Early redemption possible upon a Early redemption possible upon a Change in 100% of their principal amount with any accrued and unpaid Redemption price: Make Whole Redemption in Progressive Capital Component in Progressive Capital Component Change in Progressive Capital payments thereunder become payments thereunder become that payments thereunder Nominal Amount together with Nominal Amount together with Change in Progressive Capital Progressive Capital Component (together with accrued interest) interest, if payments under Amount; however, in case of a Tax Event resulting Redemption Amount: an Requirement or an Alignment Event. Requirement or an Alignment Event. Component Requirement or an subject to Swiss tax subject to Swiss tax become subject to certain taxes accrued interest accrued interest Component Requirement or an Requirement or an Alignment Event. Subject the notes become subject to from a Change in Tax Law only, the redemption amount equivalent to the Subject to satisfaction of applicable Subject to satisfaction of applicable Alignment Event. Subject to satisfaction Alignment Event. Subject to satisfaction to satisfaction of applicable conditions and taxation under Swiss or US price will be the Optional Redemption Price amount at which each conditions and applicable law. conditions and applicable law. Redemption of applicable conditions and applicable of applicable conditions and applicable applicable law. Redemption amount: 101% law mentioned above Preferred Security is to be Redemption amount: 101% of aggregate amount: 101% of aggregate principal law. Redemption amount: 101% of law. Redemption amount: 101% of of aggregate principal amount, together redeemed principal amount, together with accrued amount, together with accrued and unpaid aggregate principal amount, together aggregate principal amount, together with accrued and unpaid interest and unpaid interest interest with accrued and unpaid interest with accrued and unpaid interest

Coupons / dividend Fixed / Floating from 21 Fixed / Floating from 21 June Fixed / Floating from 19 17 Fixed or floating dividend / coupon Fixed / Floating from 21 December 2017 Fixed Fixed Fixed Fixed Fixed Fixed Fixed Fixed Fixed Fixed Fixed Fixed Fixed Fixed December 2017 2016 November 2019 7.152% / 3-month EURIBOR + 7.25% / 6.061% + Mid Market Swap Issues in CHF: 5.40%; issues in USD: 4.75% / 3.765% + Mid Market Swap Issues in CHF: 3.5%; issues in USD: 4.75% / 3.40% + Mid Market Swap 5.25% / 3-month Sterling LIBOR 6.375% / 3-month Sterling LIBOR Coupon rate and any related index; 7.152% / 3-month EURIBOR + 3.45%; 7.625%; 5.125%; 7.5%; 8.75%; 7.75%; 7.375%; 3.125%; 5.875%; 4.125%; 18 3.45%; Rate from 22 February 2017; 6.25%; Rate from 22 May 2018; 5.125%; Rate from 12 February 2021; + 1.29%; + 2.10%; frequency of payment annually / quarterly semi-annually annually semi-annually annually semi-annually semi-annually annually semi-annually annually annually / quarterly annually annually annually annually annually annually / quarterly annually / quarterly 19 Existence of a dividend stopper No No No No No No No No No No No No No No No No No No

20 Fully discretionary, partially discretionary, or mandatory Partially discretionary Partially discretionary Mandatory Mandatory Partially discretionary (11) Partially discretionary (11) Mandatory Mandatory Mandatory Mandatory Mandatory Mandatory Mandatory Mandatory Mandatory Mandatory Mandatory Mandatory 21 Existence of step up or other incentive to redeem Yes Yes No No No No No No No No No No No Yes No No Yes No 22 Noncumulative or cumulative Noncumulative Noncumulative Cumulative Cumulative Cumulative Cumulative Cumulative Cumulative Cumulative Cumulative Cumulative Cumulative Cumulative Cumulative Cumulative Cumulative Cumulative Cumulative 23 Convertible or non-convertible Nonconvertible Nonconvertible Nonconvertible Nonconvertible Nonconvertible Nonconvertible Nonconvertible Nonconvertible Nonconvertible Nonconvertible Nonconvertible Nonconvertible Nonconvertible Nonconvertible Nonconvertible Nonconvertible Nonconvertible Nonconvertible 24 If convertible, conversion trigger(s) ------25 If convertible, fully or partially ------26 If convertible, conversion rate ------27 If convertible, mandatory or optional conversion ------28 If convertible, specify instrument type convertible into ------If convertible, specify issuer of instrument it converts 29 ------into 30 Write-down feature - - Yes Yes Yes Yes Yes Yes Yes ------Reported phase-in Basel III CET1 ratio - Reported phase-in Basel III CET1 ratio - With respect to any Publication Date, - With respect to any Publication Date, - With respect to any Publication Date, - With respect to any Publication Date, of the Group is less than 7%; or of the Group is less than 7% / 10%; or - With respect to any Publication Date, Trigger CET1 Ratio is less than 5%; or Trigger CET1 Ratio is less than 5%; or Trigger CET1 Ratio is less than 5%; Trigger CET1 Ratio is less than 5%; or - FINMA determines a write-down is - FINMA determines a write-down is Trigger CET1 Ratio is less than 5%; or - FINMA determines a write-down - FINMA determines a write-down - FINMA determines a write-down - FINMA determines a write-down required to prevent UBS Group AG's required to prevent UBS Group AG's - FINMA determines a write-down necessary necessary to ensure UBS AG's viability; or necessary to ensure UBS AG's viability; necessary to ensure UBS AG's viability; or necessary to ensure UBS AG's viability; or insolvency, bankruptcy or failure; or UBS insolvency, bankruptcy or failure; or to ensure UBS AG's viability; or UBS AG UBS AG receives a commitment of or UBS AG receives a commitment of 31 If write-down, write-down trigger(s) - - UBS AG receives a commitment of UBS AG receives a commitment of Group AG receives a commitment of UBS Group AG receives a commitment receives a commitment of governmental ------governmental support that FINMA governmental support that FINMA governmental support that FINMA governmental support that FINMA governmental support that FINMA of governmental support that FINMA support that FINMA determines necessary to determines necessary to ensure UBS determines necessary to ensure UBS determines necessary to ensure UBS AG's determines necessary to ensure UBS AG's determines necessary to prevent UBS determines necessary to prevent UBS ensure UBS AG's viability (see definition of AG's viability (see definition of Viability AG's viability (see definition of Viability viability (see definition of Viability Event). viability (see definition of Viability Event). Group AG's insolvency, bankruptcy or Group AG's insolvency, bankruptcy or Viability Event). Event). Event). Subject to applicable conditions. Subject to applicable conditions. failure. failure. Subject to applicable conditions. Subject to applicable conditions. Subject to applicable conditions. Subject to applicable conditions. Subject to applicable conditions. 32 If write-down, full or partial - - Full Full Full Full Full Full Full ------33 If write-down, permanent or temporary - - Permanent Permanent Permanent Permanent Permanent Permanent Permanent ------If temporary write-down, description of write-up 34 ------mechanism

Claims under the Preferred Securities in respect of any Liquidation Distributions rank pari passu with claims of the holders of all other preferred securities issued by the Issuer which rank pari passu with the Preferred Securities.

In the event of liquidation, or similar event, of UBS AG, the Liquidation Distribution per Preferred Security paid to Holders thereof shall not exceed the amount that would have been paid out of the All claims in respect of the The deposit liabilities and the All claims in respect of the Rights to receive payments under DCCP Rights to receive payments under DCCP All deposit liabilities and other The deposit liabilities and other The deposit liabilities and other All claims in respect of the All other obligations, except for All claims in respect of the assets of UBS AG had the Preferred Securities and deposit liabilities of the Issuer Rights and claims of all holders of other liabilities of the Branch deposit liabilities of the Issuer Position in subordination hierarchy in liquidation Rights and claims of all holders of Senior Rights and claims of all holders of Senior will be subordinate to the rights of any Rights and claims of all holders of Senior will be subordinate to the rights of any Rights and claims of all holders of Senior liabilities of the Branch and the liabilities of the Branch and the liabilities of the Branch and the deposit liabilities of the Issuer and those ranking pari passu (i.e., deposit liabilities of the Issuer and all UBS Parity Securities been the most senior class and all of its other liabilities, Senior Obligations, subject to any All unsubordinated creditors of and the as a whole, and all of its other liabilities, 35 (specify instrument type immediately senior to instrument) Obligations, subject to any obligations Obligations, subject to any obligations that depositors and general creditors of the Obligations, subject to any obligations depositors and general creditors of the Obligations, subject to any obligations that Bank as a whole, except those Bank as a whole, except those Bank as a whole, except those all of its other liabilities, except all already existing or future all of its other liabilities, except of preference shares in UBS AG with equivalent except those which rank pari obligations that are mandatorily the Issuer except those which rank except those which rank pari that are mandatorily preferred by law are mandatorily preferred by law Group and no greater than the rights of that are mandatorily preferred by law Group and no greater than the rights of are mandatorily preferred by law which rank pari passu with or are which rank equally with or which rank equally with or those which rank pari passu with unsecured and subordinated those which rank pari passu with rights of participation in the capital of UBS AG and passu with or are preferred by law equally with or subordinate to passu with or are subordinated unsecured general creditors. unsecured general creditors. subordinated to the Securities subordinate to the Securities subordinate to the Debentures or are subordinated to the Notes obligations of UBS AG) or are subordinated to the Notes ranked junior to all liabilities of UBS AG including subordinated to the Notes the Notes to the Notes subordinated liabilities (in each case other than any liability of UBS AG which constitutes Tier 1 Securities or any liability for UBS Parity Securities, if any, issued by UBS AG and any guarantee or support agreement of UBS AG ranking pari passu with the obligations of UBS AG under the Guarantee, or UBS Junior Obligations, and any other liability expressed to rank pari passu with or junior to the obligations of UBS AG under the Guarantee)

Existence of features, which prevent full recognition under 36 Yes Yes ------Yes Yes Yes Yes Yes Yes Yes Yes Yes Basel III - No point of non-viability - No point of non-viability - No point of non-viability - No point of non-viability - No point of non-viability - No point of non-viability - No point of non-viability - No point of non-viability provision provision provision Same as for relevant hybrid provision provision provision provision No point of non-viability provision No point of non-viability 37 If yes, specify non-compliant features - Distributions to holders partially discretionary ------No prior supervisory approval - No prior supervisory approval for instrument - No prior supervisory approval for - No prior supervisory approval - No prior supervisory approval - No prior supervisory approval provision - No prior supervisory provision - Existence of a step-up for early repayment early repayment early repayment for early repayment for early repayment for early repayment approval for early repayment - Existence of step-up - Existence of step-up

(9) Comprised of DDCP issuances with a minimum five-year duration. Subject to forfeiture and vesting provisions. (10) Original date of issuance from a capital perspective. It does not correspond to grant date for employees. (11) UBS will only pay interest for the performance years in which the firm generates an adjusted pre-tax profit.

2 

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