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
Serves individuals and SMEs with annual revenues lower than R$150 million.
Approximately 24 million clients
Leading Consumer Finance franchise
Improvement of the credit card portfolio, which posted a 27% growth over the past 12 months
Retail and Consumer Credit Wholesale
Corporate Communication and HR Marcos Caetano Legal, Tax, Audit, Compliance, and Risk Lucas Melo Wholesale and Wealth Management Demosthenes Madureira Audit Committee Gabriel Jorge Ferreira Chairman Members Board of Directors Pedro Malan Chairman Pedro Moreira Salles Vice-Chairman Gabriel J. Ferreira Israel Vainboim Pedro Bodin Board Members Eduardo A. Guimarães Guy Almeida Andrade Armínio Fraga Joaquim F. Castro Neto João Dionisio Retail Márcio Schettini Treasury Daniel Gleizer Planning. Control. Operations and IR Geraldo Travaglia Operational Efficiency Marcos Lisboa Insurance and Pensions José Rudge Organizational Structure
Prominent Board Members
Independent Audit Committee
CEO Pedro Moreira Salles
Over 80 years of history to become one of the leading full service banks in Brazil Timeline
Segmentation and Distribution Client Focus Nationwide Distribution (As of December 2006) Lower Middle Market
R$ 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$) (1) (1) Before the extraordinary event of goodwill amortization 49.3% 51.5% 16.0% 15.6% 0.79 0.66 2.3% 2.1% 22.4% 21.1% -220 b.p. 40 b.p. 19.7% 20 b.p. 130 b.p. 2006 2005
3,963 4,469 3,778 6,757 5,558 5,629 5,452 4,648 3,044 16,172 14,675 12,451 29,631 29,130 25,946 89,583 86,280 75,793 45,803 43,805 38,397 43,780 42,475 37,396 Dec-06 Sep-06 Dec-05 40% 45% 35% Deposits and Assets under Management Demand Deposits Savings Deposits Core Deposits CDs Core Deposits Time Deposits + Debentures Assets Under Management (B) Total Deposits + Debentures + AUM (A+B) Total Deposits + Debentures (A) Core Deposits / Total Deposits R$ 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
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.
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.
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.