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To be or not to be in France ?

That is NOT the question !

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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).

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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