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    Investor Relations | page 1 Investor Relations | page 1 Presentation Transcript

    • Institutional Presentation December 2006 Investor Relations Unibanco and Unibanco Holdings, S.A.
    • Overview of Unibanco
    • Highlights *In 4Q06 Controlled by the Moreira Salles group Publicly traded at Bovespa (Brazil) and NYSE Level I Corporate Governance on the Bovespa Level III ADR on the NYSE and a member of IBOVESPA Very liquid stock: R$30.4 mln / US$14.1 mln ADTV* at Bovespa R$117.1 / US$54.5 mln ADTV* at NYSE Financial statements in US GAAP since 1997
      • Offers investment products via Unibanco Asset Management to individuals and institutional investors and covers high net worth individuals, in the private banking segment
      • Total assets under management: R$43,7 billion
      • Awarded “Top Equity Management “ by Valor Economico newspaper for the 4 th consecutive year
      • 2 nd place in Private Banking (Anbid), with 10% market share
      A Snapshot of Unibanco As of December 2006
      • Joint venture with AIG
      • Individuals and corporate: life, auto, assets, disability, pension funds and annuities
      • Unibanco AIG operational results: 33% of net income in 2006.
      • Unibanco Insurance and Pension Plans placed 4 th in the ranking of private pension plans published by Susep. The company ranked 2 nd in sales of corporate pension plans
      • Balanced business mix
      • Aggressive expansion in the retail segment
      • Benchmark in consumer finance and wholesale business
      • Full coverage of more than 2,000 corporations with annual revenues greater than R$150 million, in addition to institutional investors in Brazil and internationally
      • Investment Banking: M&A, Capital Markets & Project Finance
      • The Wholesale loan portfolio reached R$19,421, up 14.7% over the past 12 months
      Wealth Management CROSS SELLING Insurance & Annuity – Unibanco AIG
      • Serves individuals and SMEs with annual revenues lower than R$150 million.
      • Approximately 24 million clients
      • Leading Consumer Finance franchise
      • Improvement of the credit card portfolio, which posted a 27% growth over the past 12 months
      Retail and Consumer Credit Wholesale
    • Corporate Communication and HR Marcos Caetano Legal, Tax, Audit, Compliance, and Risk Lucas Melo Wholesale and Wealth Management Demosthenes Madureira Audit Committee Gabriel Jorge Ferreira Chairman Members Board of Directors Pedro Malan Chairman Pedro Moreira Salles Vice-Chairman Gabriel J. Ferreira Israel Vainboim Pedro Bodin Board Members Eduardo A. Guimarães Guy Almeida Andrade Armínio Fraga Joaquim F. Castro Neto João Dionisio Retail Márcio Schettini Treasury Daniel Gleizer Planning. Control. Operations and IR Geraldo Travaglia Operational Efficiency Marcos Lisboa Insurance and Pensions José Rudge Organizational Structure
      • Prominent Board Members
      • Independent Audit Committee
      CEO Pedro Moreira Salles
    • Over 80 years of history to become one of the leading full service banks in Brazil Timeline
    • Segmentation and Distribution Client Focus Nationwide Distribution (As of December 2006) Lower Middle Market
    • Client Base In Millions of Clients 4.0 4.1 6.0 Dec-03 14.1 6.4 5.0 5.0 1.8 Dec-04 18.2 Dec-05 6.8 5.3 5.3 3.0 20.4 Mar-06 7.0 5.2 5.6 3.2 21.0 Jun-06 7.2 4.5 6.7 3.8 22.2 Sep-06 4.3 6.9 4.2 22.8 7.4 Dec-06 4.3 7.1 4.7 23.8 7.7
    • Retail Business Model
    • Risk Management Macroeconomic Scenario 2,292 3,068 2,910 Dec-04 Dec-05 Dec-06 R$ Millions Loan Portfolio Consumer Finance Companies R$ Millions 107 154 4Q04 4Q05 4Q06 232 6.0% 6.7% 7.2% Jun-05 Dec-05 Jun-06 7.6% Dec-06 5.9% Feb-05 Conservative credit approach 41% 10% 22% Jun-05 Apr-06 4Q06 Approval rate – Fininvest Personal Loans Financial System Delinquency ratio (Individuals) Risk Management Provisions for Loan Losses Consumer Finance Companies Credit restriction As anticipated by Unibanco in 2005 24% 26% 27% 31% 2002 2003 2004 2006 33% 2006 Credit / GDP
    • Personal Loans – Mix of Brazilian Financial System 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Dec-01 Apr-02 Sep-02 Feb-03 Jul-03 Dec-03 May-04 Oct-04 Mar-05 Aug-05 Jan-06 Jun-06 Dec-06 Overdraft loans Personal Loans Vehicles Mortgage Loans Durable Goods Financing - Others Credit Cards Others Payroll loans 60% 40%
    • Base 100 = 2005 Base 100 = 2005 147 2006 114 120 2006 97 Market Market Cars + Trucks & Buses Loans Dec-05 Dec-06 4,029 4,833 +20.0% Motorcycle Loans (run-off) -51.4% Dec-05 Dec-06 580 282 Business Repositioning Auto Financing Focus: New Cars (Financed Units) Focus: New Trucks & Buses (Financed Units) R$ Millions R$ Millions
    • Loan Portfolio (Unicard + Hipercard) Credit Cards Number of cards ( In millions ) +26.7% 4,001 5,070 Dec-05 Dec-06 R$ Millions Highlights
      • Acquirer, issuer and processor of credit cards
      • Accepted by more than 200 thousand retailers
      • Issues Visa and Mastercard cards
      • Alliances with retailers
      Jun-04 Dec-04 Jun-05 Dec-05 Jun-06 Total Cards 9 Credit Cards 21 30 5.0 10.0 15.0 20.0 25.0 Private Label cards 30.0 Sep-06 Dec-06
    • Hipercard +67% 122 204 Dec-05 Dec-06 Points of sale +145% 93 228 2005 2006 2.4 2.7 4.2 6.5 Mar-04 Acquisition Dec-04 Dec-05 Dec-06 +171% Affiliated Retailers Number of cards ( In millions ) In thousands
    • 2004: 9 Northeast capitals Presence troughout the country 2006: 18 capitals among Northeast, South and Southeast Credit Cards: Hipercard
    • New Joint - Ventures Establishment of credit, financing and investment society with the following partners:
      • VR Group (one of the leading benefit companies in Brazil):
      • - Offering of employee’s benefit products to Unibanco’s clients
      • Offering of financial products, such as payroll loans, credit lines, credit card receivables accounts, among others
      • VR has relationship with 20 thousand HR departments and agreements with 200 thousand retailers
      BanCred
      • Banco Cruzeiro do Sul (one of the leaders in payroll loans)
      • - Banco Cruzeiro do Sul has expertise in managing alternative distribution channel mainly for the public sector
      • - Development of business in the payroll loan segment
      • Ipiranga Group (second largest oil company in the country):
      • - Offering of financial products, such as credit cards, personal credit, consumer credit and insurance.
      • - 4,200 service centers and 9 million Ipiranga’s clients
    • Financial Performance
    • Annualized ROAE (%) Stockholders’ Equity (R$ Bln) Performance 2005 2006 2004 R$ Millions 9.3 8.1 21.1% 16.8% 22.4% Net Income (1) Operating Income + 13.2% + 20.2%  4Q06/4Q05 4Q06 576 912 2006 (1) 2,210 3,521 + 20,2% + 20,5%  2006/2005 10.4 (1) (1) Before the extraordinary event 24.8% 10.1 (1) 3Q06 24.2% 9.3 4Q05 4Q04 20.1% 8.1 25.8% 9.9 4Q06
    • R$ Millions Reduction in goodwill amortization period During 3Q06, Unibanco reduced its goodwill amortization period from 10 to 5 years 2006 2005 1,750 1,838 Net income without goodwill amortization Net income with goodwill amortization Stockholders’ equity without goodwill amortization Stockholders’ equity with goodwill amortization ROAE without goodwill amortization (%) ROAE with goodwill amortization (%) 2,210 1,838 9,921 9,324 10,381 9,324 18.2 21.1 22.4 21.1 Acceleration of goodwill amortization (460) -
    • 2006 Performance ROAE (1) ROAA (1) Efficiency Ratio BIS Ratio Earnings per share (R$) (1) (1) Before the extraordinary event of goodwill amortization 49.3% 51.5% 16.0% 15.6% 0.79 0.66 2.3% 2.1% 22.4% 21.1% -220 b.p. 40 b.p. 19.7% 20 b.p. 130 b.p. 2006 2005 
    • Highlights
      • 6.6% growth in the Retail portfolio in 4Q06, with Credit Cards up 17.1% and SMEs up 7.0%
      • Loan portfolio quality improvement:
        • 18.8% reduction in provisions for loan losses, 4Q06 versus 4Q05
        • Better ratio of D-H portfolio over total loans ( 6.4% vis-à-vis 7.7% in December 2005)
        • Higher E-H portfolio coverage ratio, 115% , compared to 112% in December 2005
      Loan Portfolio Results
      • 20.2% net income growth, 2006 versus 2005
      • 20.5% operating income growth, 2006 versus 2005
      • Improvement in Efficiency Ratio: 49.3% in 2006 from 51.5% in 2005
      Units UBBR11
      • Up 47% in 2006 compared to a 33% growth of Ibovespa. The greatest growth among Brazilian private-owned banks listed on Bovespa in 2006
      • Ibovespa weighting: 1.923% . A 95% increase since its inclusion (May 2005)
      Financial Margin
      • Gross Financial Margin grew to 10.2% in 2006, vis-à-vis 10.0% in 2005, despite the 475 b.p. Selic rate decline
      • Net Financial Margin improved to 8.0% in 4Q06, higher than the 7.5% in 4Q05
      • Top 3 in BNDES overall ranking with 8.6% market share
      • 30% increase in cash management revenues
      • Lead coordinator of Ambev´s debentures issuance, which was awarded “Local Currency Financing Deal” in 2006, by LatinFinance magazine
      • Investment Banking department made 31 deals , valued at approximately R$18 billion
      • Top 10 Research House , according to Institutional Investor magazine. 1 st place in Natural Resources category, and 3 rd place in Consumer Goods
      • Operational results: 33% of net income in 2006, vis-à-vis 9% in 2005
      • Leadership in commercial lines, energy, environment, D&O (Directors and Officers) and extended warranty products
      • Combined ratio of 94.5% in 2006, better than 98.3% in 2005
      • AUM reached R$44 billion
      • Private Bank AUM grew 25% in 2006
      • Awarded “Top Equity Management” by Valor Econômico newspaper, for the 4 th consecutive year
      • 17% overall client base growth, reaching 23.8 million , with a 13% increase in branch customers
      • New partnerships and alliances: Sonae/Wal-Mart, Ipiranga, Grupo VR (UniVR), and Banco Cruzeiro do Sul
      • Expansion of Hipercard to the South and Southeast, with 145% growth in total points-of-sale
      • 26.7% credit card portfolio growth over the last 12 months
      • Core deposits funding surpassed R$16 billion , +30% in the year
      2006 Business Highlights Wholesale Retail Insurance and Pension Plans Wealth Management
    • Financial Indicators Gross Profit from Financial Intermediation Total Assets Loan Portfolio Earnings per Unit (R$) 4Q05 1Q06 2Q06 91,831 93,770 98,217 Dec-05 Mar-06 Jun-06 39,875 39,684 2,481 2,257 2,357 4Q05 1Q06 2Q06 2,392 3Q06 101,999 Sep-06 41,929 3Q06 0.37 0.35 0.38 R$ Millions Dec-05 Mar-06 Jun-06 Sep-06 43,323 0.39 Dec-06 Dec-06 45,361 2,489 4Q06 4Q06 0.42 103,777
    • Personnel and Administrative Expenses Fees from Services Rendered Income Statement Summary R$ Millions 1,601 1,956 889 909 (1,348) (1,527) 759 912 509 576 7,297 6,343 3,582 3,270 (5,713) (5,092) 3,521 2,921 2,210 1,838 2006 2005 Gross Profit from Financial Intermediation Provisions for Loans Losses Net Profit from Financial Intermediation Operating Income Net Income before the extraordinary event 4Q06 4Q05 (656) (533) (2,422) (1,904) 2,257 2,489 9,719 8,247 3Q06 2,481 (579) 1,902 909 (1,458) 906 566
    • Loan Portfolio Growth +13.8% Sep-06 Dec-06 +4.7% 6.6% Dec-05 Wholesale Retail R$ Millions 39,875 45,361 2.3% 25,940 22,949 19,421 16,926 43,323 24,338 18,985
    • Corporate Individuals R$ Millions R$ Millions Dec-05 Sep-06 +6.4% 15,614 16,383 Dec-06 17,425 +11.6% +15.1% 24,261 +3.7% 26,940 Main Highlights 27,936 -4.5% 1.9% 17.1% 16.1% 14.7% 6.8%  Quarter 6.0% 17.6% 26.7% 7.0% 2.3% 20.0%  Year Loan Portfolio Growth -20.8% -51.4% Dec-05 Sep-06 Dec-06 Branch Network Credit Cards Car Loans Consumer Finance Companies Motorcycle Financing SMEs Large Corporate
    • Financial Margin 23.3% 29.1% 27.2% 27.9% Provisions for Loan Losses / Financial Margin -770 b.p. 4Q05 2Q06 3Q06 1Q06 21.4% 4Q06 18.00% 13.25% Selic Interest Rate 2005 2006 10.2% 10.0% 7.7% 7.7% Net Financial Margin Financial Margin
    • Asset Quality D-H Portfolio/ Loan Portfolio Dec-05 Sep-06 Dec-06 115% 114% 112% Dec-05 Sep-06 Dec-06 Coverage E-H Portfolio Coverage D-H Portfolio 92% 87% 67% Dec-05 Sep-06 Dec-06 6.4% 6.7% 7.7%
    • 441 548 599 Dec-05 Jun-06 Dec-06 +35.8% R$ Millions Additional Allowance for Loan Losses
    • Dec-06 Sep-06 Dec-05 12.4% 9.8% 9.4% 4.6% 6.6% 7.9% 3.4% 5.8% 15.3% 9.4% 9.6% 4.2% 6.6% 8.1% 3.2% 5.9% 10.1% 6.1% 9.2% 3.6% 4.7% 6.1% 3.9% 5.2% Loan Portfolio Coverage Consumer Finance Companies Credit Cards Retail Bank - Individuals Auto Financing SMEs Retail Wholesale Unibanco Consolidated Allowance for Loan Losses / Loan Portfolio
    • 3,963 4,469 3,778 6,757 5,558 5,629 5,452 4,648 3,044 16,172 14,675 12,451 29,631 29,130 25,946 89,583 86,280 75,793 45,803 43,805 38,397 43,780 42,475 37,396 Dec-06 Sep-06 Dec-05 40% 45% 35% Deposits and Assets under Management Demand Deposits Savings Deposits Core Deposits CDs Core Deposits Time Deposits + Debentures Assets Under Management (B) Total Deposits + Debentures + AUM (A+B) Total Deposits + Debentures (A) Core Deposits / Total Deposits R$ Millions
    • Core Deposits R$ Millions 10,811 12,451 Dec-04 Dec-05 16,172 Dec-06 (1) Source: Brazilian Central Bank, preliminary data. 29.9% 14.3% Brazilian Financial System (1) Dec 06 vs Dec 05 Dec 06 vs Dec 04 49.6% 23.9% +49.6% Core Deposits Growth Core Deposits Comparison
    • Revenues R$ Millions Efficiency Ratio Evolution Efficiency Ratio Expenses Efficiency Ratio 9,878 5,092 11,593 5,713 2005 2006 51.5% 49.3% 8,310 5,058 2004 60.9%
    • Insurance and Pension Plans Technical Reserves R$ Millions Premiums Earned Pension Plans Insurance 1,713 2,038 2005 2006 +19.0% 5,376 6,345 1,470 1,953 6,846 8,298 +21.2% 2005 2006 Combined Ratio Loss Ratio 98.3% 2005 94.5% 2006 48.8% 2006 53.0% 2005
    • Shareholders’ Structure and Stocks
    • Moreira Salles Group Float Units +GDS Others Total 513,068 1,073,969 40,668 1,627,705 Unibanco Holdings Float Units +GDS Others Total 1,627,705 1,073,969 98,515 2,800,189 18% 38% 2% 58% 58% 38% 4% 100% PN Unibanco Holdings PN Unibanco + UNITs 76,7% Shareholders’ Structure % of Unibanco shares % of Unibanco shares Thousands of Shares 1 GDS=10 Units
    • Units and GDSs
      • Unibanco Units gained 47% in 2006
      • Unit continues to increase its weighting within the Ibovespa. Since its inclusion in the Ibovespa in May 2005, its participation increased more than 95%
      Units (UBBR11) versus Ibovespa GDSs (UBB) versus Dow Jones Units Weighting in Brazilian Stock Indices Weighting (%) Jan to Apr-07 Ibovespa 1.923 IBrX-50 3.879 IBrX-100 3.369 IGC Corporate Governance Index 3.967 ISE Sustainability Index* 5.884 Index * Valid from December 2006 to November 2007.
    • Annex I Dividends
    • 143 Dividend History 35% 38% 37% 38% 35% 35% 36% 37% 35% 54 82 102 131 152 160 166 204 283 89 82 108 133 171 180 196 244 334 1997 1998 1999 2000 2001 2002 2003 2004 2005 164 210 264 323 340 362 448 617 CAGR = 20% 2006 403 757 36% 1 st Half 2 nd Half R$ Millions
            • Unibanco has paid semi-annual dividends for more than 3 decades
            • From 2005 on, Unibanco started paying quarterly dividends
      Pay Out Ratio 354
    • Annex II Ratings
    • Unibanco Ratings Fitch Ratings Unibanco BB Foreign Currency Brazil Long Term Short Term BB+ B B BB Local Currency Brazil Long Term Short Term - Unibanco BB+ B Standard and Poor’s Unibanco BB Foreign Currency Brazil Long Term Short Term BB B B BB+ Local Currency Brazil Long Term Short Term B Unibanco BB B Moody’s Long Term Debt Long Term Deposits Short Term Deposits Financial Strength Unibanco Baa3 (1) NP C- Ba3 Brazil Ba2 Ba3 NP - Global Scale: Foreign Currency Global Scale: Local Currency Long Term Deposits Short Term Deposits Unibanco P-1 A1 Brazil A1 P-1 (1) The Baa3 rating was attributed to the MTN Programme (Medium Term Note Programme) of Unibanco and also to the notes indexed to the IGP-M (General Market Price Index) and payable in US dollars issued by Unibanco Grand Cayman Branch.
    • Brazilian Economy
    • Perspectives 2006 2007 (E) Real GDP Growth (%) 2.9% 3.5% SELIC (End of Year) 13.25% 11.50% IPCA (Inflation) 3.1% 4.0% Trade Balance (US$) 46.1 bi 45.5 bi Macroeconomic Perspectives Exchange Rate R$/US$ (Enf of Year) 2.20 2.10
    • Investor Relations phone: 5511-3584-1980 fax: 5511- 3584-1585 email: investor.relations@unibanco.com site: www.ir.unibanco.com
        • This presentation contains forward-looking statements regarding Unibanco. its subsidiaries and affiliates - anticipated synergies. growth plans. projected results and future strategies. Although these forward-looking statements reflect management’s good faith beliefs. they involve known and unknown risks and uncertainties that may cause the Company’s actual results or outcomes to be materially different from those anticipated and discussed herein. These risks and uncertainties include. but are not limited to. our ability to realize the amount of the projected synergies and the timetable projected. as well as economic. competitive. governmental and technological factors affecting Unibanco’s operations. markets. products and prices. and other factors detailed in Unibanco’s filings with the Securities and Exchange Commission which readers are urged to read carefully in assessing the forward-looking statements contained herein. Unibanco undertakes no duty to update any of the projections contained herein.