Risk Factors
Management businesses. These factors and other consequences of the COVID-19 pandemic may negatively affect UBS AGs financial condition, including
possible constraints on capital and liquidity, as well as a higher cost of capital, and possible changes or downgrades to our credit ratings
Although UBS
AG has moved a substantial portion of its workforce to work-from-home solutions, including client-facing and trading staff, if significant portions of its workforce, including key personnel, are unable to work effectively because of illness,
government actions, or other restrictions in connection with the pandemic, the adverse effects of the pandemic on its businesses could be exacerbated. In addition, with most of its staff working from outside the offices, UBS AG faces new challenges
and operational risks, including maintenance of supervisory and surveillance controls, as well as increased fraud and data security risks. While UBS AG has taken measures to manage these risks, such measures have never been tested on the scale or
duration that UBS AG is currently experiencing, and there is risk that these measures will not be effective in the current unprecedented operating environment.
The extent to which the pandemic, and the related economic distress, affect UBS AGs businesses, results of operations and financial condition, as well
as its regulatory capital and liquidity ratios, will depend on future developments that are highly uncertain and cannot be predicted, including the scope and duration of the pandemic and any recovery period, future actions taken by governmental
authorities, central banks and other third parties in response to the pandemic, and the effects on UBS AGs customers, counterparties, employees and third-party service providers.
The Current Principal Amount will not be reset on the Index Business Day preceding, during or after any Measurement Period, even if a Quarterly Reset Valuation Date
or Loss Rebalancing Event would otherwise have occurred during such period, which may adversely affect the value of your Securities as compared to their value if the Current Principal Amount had been reset.
If a day that would otherwise be a Quarterly Reset Valuation Date falls on the Index Business Day immediately preceding, within or following, any Measurement
Period, then the Current Principal Amount will not be reset on such date and no further Quarterly Reset Valuation Dates will occur during the term of the Securities. In addition, no Loss Rebalancing Event will occur on any Excluded Day, which
includes any Index Business Day within any Measurement Period. As a result, the value of your Securities may be adversely affected compared to their value if the Current Principal Amount had been reset during such periods. For example, if, in the
absence of the applicable Measurement Period, the Current Principal Amount would have increased on the applicable Quarterly Reset Valuation Date or Loss Rebalancing Valuation Date, then the payment you receive at maturity, call or acceleration upon
the occurrence of a Zero Value Event, if any, would be less than you would have received if the Current Principal Amount had been reset.
The Index Closing Level
on the Maturity Date, the Call Settlement Date, the Zero Value Settlement Date, a Redemption Date, or at other times during the term of the Securities, including dates near a Measurement Period, could be higher than the applicable Index Closing
Levels during the Measurement Period, Zero Value Event date or on the Redemption Valuation Date, as applicable.
The Index Closing Level on the
Maturity Date, the Call Settlement Date, the Zero Value Settlement Date, a Redemption Date, or at other times during the term of the Securities, including dates near a Measurement Period, could be higher than the applicable Index Closing Levels
during such Measurement Period, Zero Value Event date or on the Redemption Valuation Date, as applicable. This difference could be particularly large if there is a significant increase in the Index Closing Level after the Measurement Period, the
Zero Value Event date or following a Redemption Valuation Date, as applicable. Significant
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