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Overview of Unibanco. Highlights. 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$21.0 mln / US$9.0 mln ADTV * at Bovespa

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slide3

Highlights

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$21.0 mln / US$9.0 mln ADTV * at Bovespa

US$43.8 mln ADTV * at NYSE

Financial statements in US GAAP since 1997

* For the period Oct 1 - December 31; US$1 = R$2.34

slide5

Board of Directors

Pedro Malan

Chairman

Pedro Moreira Salles

Vice-Chairman

Audit Committee

Gabriel Jorge Ferreira

Chairman

Members

Armínio Fraga

Joaquim F. Castro Neto

João Dionisio

Gabriel J. Ferreira

Israel Vainboim

Pedro Bodin

Board Members

CEO

Pedro Moreira Salles

Eduardo A. Guimarães

Guy Almeida Andrade

Retail

Márcio Schettini

Wholesale and

Wealth ManagementDemosthenes Madureira

Insurance

and Pensions

José Rudge

Treasury

Daniel Gleizer

Legal, Audit,

and Risk

Lucas Melo

Planning, Control,

Operations and IR

Geraldo Travaglia

Corporate

Communication

and HR

Marcos Caetano

Organizational Structure

  • Prominent Board Members
  • Independent Audit Committee
slide6

Timeline

Over 80 years of history to become one of the leading full service banks in Brazil

slide7

Segmentation and Distribution

17,020 Points of Service

Private Bank(Financial Investment >

R$3 million)

Large Companies(Annual Sales > R$150 million)

Branches

Corp. Site Branches

Upper Middle

Market

(R$40 million < Annual Sales

< R$150 million)

North

11

North

8

North

70

Northeast

68

Northeast

42

Northeast

380

UniClass Segment

(Monthly Income > R$4,000)

Mid-West

43

Mid-West

31

Mid-West

133

Southeast

676

Southeast

223

Southeast

1,909

South

116

South

45

South

244

Brazil

914

349

2,736

Brazil

Brazil

Lower Middle

Market

(R$5 million < Annual Sales

< R$40 million)

PAYROLL

Stores

Points of Sale

Exclusive Segment

(R$350 < Monthly Income

< R$4,000)

North

4

329

North

Northeast

37

Northeast

1,485

Small Business

(Annual Sales

< R$5 million)

Mid-West

17

1,043

Mid-West

Southeast

191

Southeast

6,283

South

30

2,881

South

Brazil

279

Brazil

12,021

Corporate

Individuals

Consumer Finance Companies

Stores

Mid-West

41

Private

Banking

Wholesale

Retail

Southeast

426

South

254

Brazil

721

A superior strategy and comprehensive distribution system...

Client Focus

Nationwide Distribution

(As of December 2005)

…foster cross-selling opportunities across our expanding client base

slide8

Universal Bank

Greater focus on higher margin and faster growing businesses

Retail

Wholesale & Wealth Management

Insurance

slide9

Consumer Finance

Leading Consumer Finance Platform

Consumer Finance Loan Portfolio (R$ Million)

Leading Consumer Finance Platform

33.9%

Alliances

Alliances with a great number of retailers across the country

3,068

2,292

Joint-Ventures

Fully- Owned

Dec-04

Dec-05

  • Fininvest: aggressive growth plan
  • Leveraging Alliances and Joint Ventures
  • Cross Selling focus: Credit Cards, Banking Accounts, Capitalization, Insurance and Extended Warranty
slide10

Highlights

  • Issues Visa and Mastercard cards
  • Alliances with retailers
  • Acquirer, issuer and processor of credit cards
  • Accept by more than 120 thousand retailers

Credit Cards

Loan Portfolio (R$ Million)

43.2%

4,001

2,794

Dec-04

Dec-05

slide11

SMEs & Auto Financing

SMEs (R$ Million)

Auto Financing (R$ Million)

30.3%

25.2%

  • Approximately 510,000 companies
  • Leveraging synergies with the group (Fininvest, Unicard, Hipercard)
  • Wide range of banking services
  • Significant contribution to core deposits’ growth

4,609

7,335

3,682

5,629

Dec-04

Dec-05

Dec-04

Dec-05

  • Fast growing segment
  • Strong relationship with dealers through Unibanco´s affiliates
  • Better qualified, trained and remunerated sales force
  • Larger base of active dealers with 20% growth in 2005
slide13

Shift in the Loan Portfolio Mix

Migration to faster growing segments with higher margins

67%

50%

46%

44%

48%

Wholesale

50%

54%

56%

Retail

33%

52%

Dec-99

Dec-03

Dec-04

Dec-05

slide14

SuperPoupe

Deposits

2002

2003

2004

2005

3,044

12,451

8,973

Core deposits

8,647

10,811

2,628

2,350

Time deposits

17,015

16,710

22,720

23,048

1,962

1,625

Total deposits

25,357

35,499

25,988

33,531

1,030

Core Deposits Evolution: Comparison

403

Growth in 2005

Jun-04

Sep-04

Dec-04

Mar-05

Jun-05

Sep-05

Dec-05

15.2%

National Financial System (1)

8.5%

Improved Funding Structure

R$ millions

  • Main actions
  • Development of alternative sources of funding such as SuperPoupe
  • Link individual variable compensation at branch level to Core Deposits
  • Focus on cash management services, such as Payroll and Collection

1 preliminary data

slide15

Cost Management

R$ millions

Efficiency Ratio Evolution

60.9%

63.4%

61.2%

59.5%

59.5%

53.7%

52.8%

51.3%

51.5%

49.2%

D %

1,921

1,960

2,136

2,293

2,209

2,334

2,579

2,745

18.9%

8,310

9,878

1,143

1,242

1,308

1,365

1,232

1,323

1,351

1,186

0.7%

5,058

5,092

1Q04

2Q04

4Q04

4Q05

2004

2005

1Q05

2Q05

3Q05

3Q04

Efficiency Ratio

Revenues

Expenses

slide16

Performance Evolution: 2005

2005 / 2004

+43.3%

Net Income R$1,838 million

Operating IncomeR$2,921 million

+49.0%

24.2%

23.3%

23.0%

21.0%

20.1%

17.8%

17.5%

9.3

17.3%

17.1%

16.5%

9.0

16.1%

8.7

8.4

8.1

13.8%

7.9

7.7

R$ billion

7.4

7.2

7.0

6.8

6.7

4Q05

2Q05

3Q05

1Q03

2Q03

3Q03

4Q03

1Q04

2Q04

3Q04

4Q04

1Q05

Annualized ROAE (%)

Stockholders’ Equity

slide18

2005 Highlights

  • 43.3% net income growth, 2005 versus 2004
  • 7.2% net income growth, 4Q05 versus 3Q05
  • Improvement in efficiency ratio: 49.2% in 4Q05 from 59.5% in 4Q04

Results

  • Individuals: 31.1%
  • Credit Cards: 43.2%
  • SMEs: 30.3%
  • Large Corporate: 19.0%

Loan Portfolio Growth

25.4% total annual growth

Cost Management

  • 1.0% decrease in personnel and administrative expenses, 4Q05 versus 4Q04
  • Over the year, an increase of 0.7%
  • Units were included in the Ibovespa Index in May
  • Ibovespa’s best performing stock during 2H05, with a 72% gain
  • The largest increase in weighting within Ibovespa, 59%
  • 33% free float increase

Units

slide19

Income Statement

2005

2004

Profit from Financial Intermediation

6,343

5,087

(+) Fees from Services Rendered

3,270

3,241

(-) Personnel & Administrative Expenses

(5,092)

(5,058)

(+/-) Other Operating Income / Expenses

(1,600)

(972)

(=) Operating Income

2,921

1,961

(+/-) Non-Operating Income

9

37

(+/-) Income Tax and Social Contribution

(601)

(339)

(Effective Income Tax Rate)

23%

19%

(-) Profit Sharing / Minority Interest

(491)

(376)

Net Income

1,838

1,283

R$ Million

slide20

Performance: 2005 versus 2004

2004

2005

(*) Excludes Credicard/Orbitall

slide21

Financial Indicators

Financial Margin

(before Provision for Loan Losses)

10.8%

10.8%

10.3%

9.7%

9.4%

4Q04

1Q05

2Q05

3Q05

4Q05

Loan Portfolio (R$ millions)

Total Assets (R$ millions)

91,831

88,423

39,875

36,872

35,154

82,731

82,109

33,176

31,796

79,350

Dec-04

Mar-05

Jun-05

Sep-05

Dec-05

Dec-04

Mar-05

Jun-05

Sep-05

Dec-05

BIS Ratio (%)

18.2%

17.3%

16.4%

16.3%

16.1%

Dec-04

Mar-05

Jun-05

Sep-05

Dec-05

slide23

Loan Portfolio Growth

Retail

Wholesale

slide24

Loan Portfolio Growth – Individuals and Corporate

  • Main Highlights over 12 months:

Individuals

(R$ millions)

31.1%

7.9%

43.2%

Credit Cards

Consumer Finance Companies

31.6%

15,170

14,061

Auto Financing

25.2%

11,570

Branch Network

26.6%

Dec-05

Dec-04

Sep-05

Corporate

(R$ millions)

22.1%

8.3%

SMEs

30.3%

24,705

22,811

19.0%

Large Corporate

20,226

Dec-05

Dec-04

Sep-05

slide25

Loan Portfolio Quality

Loan Portfolio, by risk level

Allowance for Loan Losses/

Loan Portfolio E-H

slide26

Financial Margin

Financial margin has consistently increased over the last quarters

23.1%

20.4%

22.6%

29.0%

10.8%

10.0%

9.4%

8.9%

7.6%

7.7%

7.2%

7.1%

2004

2005

4Q04

4Q05

Provision for Loan Losses/

Financial Margin

Financial Margin after Provision

Financial Margin

slide27

Fees from Services Rendered

R$ millions

2005

2004

4Q05

4Q04

Banking fees and other fees and commissions

1,880

1,662

517

445

Credit Cards

1,051

841

289

248

Assets under management

339

385

85

98

Subtotal

3,270

2,888

891

791

Credicard and Orbitall

-

353

-

60

-

Total Fees from Services Rendered

3,270

3,241

891

851

891

851

slide28

4Q05

4Q04

2005

2004

Personnel Expenses

480

529

1,911

1,928

Other Administrative Expenses

871

787

3,181

2,834

Subtotal

1,351

1,316

5,092

4,762

Credicard and Orbitall

-

49

-

296

Total

1,351

1,365

5,092

5,058

Personnel and Administrative Expenses

R$ millions

186%

171%

161%

156%

66%

64%

64%

62%

4Q04

4Q05

2004

2005

Fees from Services Rendered/ Personnel Expenses

Fees from Services Rendered/ Personnel and Adm. Expenses

slide30

Units and GDSs

  • Ibovespa’s best performers during 2H05, gaining 72%.
  • The largest increase in weighting within the Ibovespa in the past two four-month periodical rebalances (59%).
  • ADTV of Units on the Bovespa increased 340.9%, to R$19.4 million in 2005 from R$4.4 million in 2004.
  • ADTV during 4Q05 was R$21.0 million on the Bovespa and US$43.8 million on the NYSE.

Units (UBBR11) versus Ibovespa

GDSs (UBB) versus Dow Jones

Brazilian Stock Index

Weight (%)

Index

9/2/05

1/2/06

Ibovespa

1.264

1.564

IBrX-50

3.156

3.808

IBrX-100

2.799

3.329

IGC

4.933

5.096

(*)

n/a

9.569

ISE

(*) The index was initiated in Dec-05.

slide32

2006 Outlook

2005 2006 (E)

GDP Growth 2.5% (E) 3.5%

FX Rate R$/US$ (end-of-year) 2.34 2.25

SELIC (end-of-year) 18.00% 14.75%

IPCA (Consumer Price Index) 5.7% 4.5%

Trade Balance Surplus (US$) 44.8 bln 39.0 bln

slide33

Annex I

2005 – A Retrospective

slide34

2005 Highlights

JanGlobal Public Offering of Units and GDSs

JanQuarterly Interest on Capital Stock

Mar New Marketing Campaign

  • Selling Shareholders: Commerzbank and BNL
  • Offering size: 6.6% of Unibanco’s capital
  • Price: R$15.65 per Unit
  • Financial volume: R$718.3 million
  • Demand: 4.9x Book
  • Quarterly payments of Interest on Capital Stock
  • Related to the year 2005, Unibanco declared R$ 617 million in Interest on Capital Stock/Dividends, up 38% from 2004
  • New logo
  • New Service Model
  • A more transparent and agile bank, working to surpass client expectations
slide35

2005 Highlights

MayUnits Included in the Ibovespa

JulPerpetual Bonds

  • 0.984% weight at the time of inclusion in the Ibovespaindex
  • Since their inclusion in the Ibovespa, the Units achieved the largest weighting gain in the index’s portfolio
  • Units current weight in the Ibovespa is 1.564%
  • Issuance of Perpetual Bonds in July 2005: US$500 millions
  • 8.70% annual coupon
  • Call Option: subject to redemption, in whole, in Jul-2010 or in any subsequent interest payment date occurring thereafter
slide36

2005 Highlights

SepGlobal Public Offering of Units and GDSs

Dec Unibanco Units were Ibovespa’s best performers during 2H05

  • Selling Shareholder: CGD (Caixa Geral de Depósitos)
  • Offering size: 12.3% of Unibanco’s capital
  • Price: R$20.49 per Unit and US$44.00 per GDS
  • Financial Volume: R$1,765 million
  • Demand: 3.0x Book
  • Until February 15, the Units and GDSs appreciated by 70% and 87%, respectively
  • 72% return versus 34% of Ibovespa
  • ADTV1 increased by 340.9%, reaching R$19.4 million in 2005, from R$4.4 million in 2004
  • ADTV1 for 4Q05 peaked up to R$21.0 million at Bovespa and US$43.8 million at NYSE

1 Average daily trading volume

slide37

2005 Highlights

Dec-05Units included in the Corporate Sustainability Index - ISE

Feb-06 Moody's upgrades Unibanco's Financial Strength Rating

  • The index is an initiative of Bovespa, in partnership with IFC (International Finance Corporation)
  • ISE’s purpose is to measure the return of a theoretical portfolio comprised by shares of companies committed to social responsibility and corporate sustainability
  • Units current weight in the ISE index is 9.569%
  • According to the agency, this upgrade “reflects Unibanco's consistently robust core earnings and the management's ability to steer the bank towards higher-yielding businesses, while maintaining asset quality and controlling costs”.
slide38

2005 Business Units Highlights

Retail

  • Retail segment surpassed 20 million clients
  • Expansion of Fininvest and Hipercard operations
  • SuperPoupe deposits reached R$3 billion
  • New positioning
  • New service model in the branch network, the “Novo Modelo de Atendimento”

New logo

New marketing campaign

Wholesale

  • 19.0% loan portfolio growth, 2005 versus 2004
  • Lead manager in the issuance of 18 debentures, ranking 1st by number of transactions and 2nd in origination and distribution
  • 2nd place in BNDES-Exim modality, reaching a 18% market share, and 3rd place in BNDES general ranking
  • Manager in 4 of the main Brazilian stock public offerings, totaling approximately US$1.5 billion - including the participation as lead manager of Unibanco’s Units and GDSs offering, the largest equity deal in Brazil since 2002
  • Top 10 Research House, according to Institutional Investor. 1st place in Consumer Goods category and 3rd place in Aerospace, Transportation and Industrials category
slide39

2005 Business Units Highlights

Insurance

  • Leadership in property, aviation, D&O, energy, and extended warranty products
  • Increase in the participation at IRB-Brasil Re to 11%
  • Issuance of the first environmental insurance policy in Brazil
  • Combined Ratio of 95.4% in 4Q05, the best ever for Unibanco AIG Seguros
  • 31.4% growth in Insurance and Private Pension Plans Technical Reserves in 2005

Wealth Management

  • Private Bank ranked 2nd in assets under management, with a 11.4% market share
  • Rating AMP1 (very strong) by Standard & Poors Rating Services
  • Top “Gestão de Renda Variável” asset management award - by Valor Econômico newspaper
slide40

Annex II

Dividends

slide41

Dividend History

35%

38%

37%

38%

35%

35%

36%

37%

35%

R$ Million

2nd Half

1st Half

Pay Out Ratio

  • Unibanco has paid semi-annual dividends for more than 3 decades
  • From 2005 on, Unibanco started paying quarterly dividends
slide42

Annex III

Ratings

slide43

Unibanco Ratings

Moody’s

Global Scale: Foreign Currency

Global Scale: Local Currency

Long TermDebt

Long Term Deposits

Short Term Deposits

Financial Strength

Long Term Deposits

Short Term Deposits

Ba3

B1

NP

-

-

-

Brazil

Brazil

Ba1

B1

NP

C-

A3

P-2

Unibanco

Unibanco

Standard and Poor’s

Foreign Currency

Local Currency

Long Term

Short Term

Long Term

Short Term

Brazil

BB

Brazil

BB+

B

B

Unibanco

BB

B

Unibanco

BB

B

Fitch Ratings

Foreign Currency

Local Currency

Long Term

Short Term

Long Term

Short Term

BB-

B

BB-

-

Brazil

Brazil

Unibanco

BB-

B

Unibanco

BB

B

slide44

Annex IV

New marketing campaign

slide46

For further information contact our

Investor Relations Area atphone: 5511-3097-1980fax: 5511-3097-1585email: 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.