Investor Relations | page 1 Unibanco and Unibanco Holdings, S.A. Institutional Presentation March 2006 Investor Relations

Investor Relations | page 1

Unibanco and Unibanco Holdings, S.A.

Institutional Presentation

March 2006

Investor Relations


Overview of Unibanco


Highlights

Publicly traded at Bovespa (Brazil) and NYSEPublicly traded at Bovespa (Brazil) and NYSE

Level III ADR on the NYSE and a member of IBOVESPA Level III ADR on the NYSE and a member of IBOVESPA

Very liquid stock: R$30.2 mln / US$13.8 mln ADTV* at Bovespa US$68.0 mln ADTV* at NYSE

Very liquid stock: R$30.2 mln / US$13.8 mln ADTV* at Bovespa US$68.0 mln ADTV* at NYSE

Financial statements in US GAAP since 1997Financial statements in US GAAP since 1997

Controlled by the Moreira Salles groupControlled by the Moreira Salles group

Level I Corporate Governance on the BovespaLevel I Corporate Governance on the Bovespa

* For the period Jan 1 - March 31; US$1 = R$2.17


A Snapshot of Unibanco

• Serves individuals and SMEs with annual revenues lower than R$150 million.

• Close to 21 million clients

• Leading Consumer Finance franchise

• Hipercard: more than 4.5 million cards issued and over 135 thousand affiliated stores

Retail and Consumer Credit

• 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

• Top 10 Research House, according to Institutional Investor. 1st place in Consumer Goods category and 3rd place in Aerospace, Transportation and Industrials category

Wholesale

As of March 2006

• 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$39.9 billion

• #2nd place in Private Banking (Anbid), with more than 10% market share

• “Top Gestão” asset management award - by S&P

Wealth Management

• Joint venture with AIG

• Individuals and corporate: life, auto, assets, disability, pension funds and annuities

• Issuance of the first environmental insurance policy in Brazil

• Strong market share growth with increasing profitability: 7.5% market share in February 2006 from 4.9% in 2000

Insurance & Annuity – Unibanco AIG

• A balanced business mix

• Aggressive expansion in the retail segment

• Benchmark in consumer finance and wholesale business


Organizational Structure

Prominent Board Members Independent Audit Committee

Retail

Márcio Schettini

Retail

Márcio Schettini

Wholesale and Wealth Management

Demosthenes Madureira

Wholesale and Wealth Management

Demosthenes Madureira

Insurance and Pensions

José Rudge

Insurance and Pensions

José Rudge

Audit Committee

Gabriel Jorge FerreiraChairman

Members

Audit Committee

Gabriel Jorge FerreiraChairman

Members

Legal, Audit, and Risk

Lucas Melo

Legal, Audit, and Risk

Lucas Melo

Planning, Control, Operations

and IR

Geraldo Travaglia

Planning, Control, Operations

and IR

Geraldo Travaglia

Corporate Communication

and HR

Marcos Caetano

Corporate Communication

and HR

Marcos Caetano

Treasury

Daniel Gleizer

Treasury

Daniel Gleizer

CEOPedro Moreira Salles

CEOPedro Moreira Salles

Board of Directors

Pedro MalanChairman

Pedro Moreira SallesVice-Chairman

Board of Directors

Pedro MalanChairman

Pedro Moreira SallesVice-Chairman

Gabriel J. Ferreira Israel Vainboim Pedro BodinBoard Members

Eduardo A. GuimarãesGuy Almeida Andrade

Armínio Fraga Joaquim F. Castro Neto João Dionisio


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

Timeline


A superior strategy and comprehensive distribution system...

Segmentation and Distribution

Client Focus Nationwide Distribution

…foster cross-selling opportunities across our expanding client base


Greater focus on higher margin and faster growing businesses

ConsumerFinance

CreditCards

Autos

Insurance &PensionUAM

BranchNetwork

Private

High

Low

Marg

in

Low HighGrowth

Wholesale

SMEs

Retail

Wholesale & Wealth Management

Insurance

Universal Bank


Consumer Finance

Leading Consumer Finance Platform Consumer Finance Loan Portfolio (R$ Million)

• Fininvest: aggressive growth plan

• Leveraging Alliances and Joint Ventures

• Cross Selling focus: Credit Cards, Banking Accounts, Capitalization, Insurance and Extended Warranty

Leading Consumer Finance Platform

21.0%

Mar-05 Mar-06

2,396

2,900


Credit Cards

Loan Portfolio (R$ Million)

51.6%

2,630

3,987

Mar-05 Mar-06

• Acquirer, issuer and processor of credit cards• Accepted by more than 135 thousand retailers

• Issues Visa and Mastercard cards• Alliances with retailers

Highlights


SMEs (R$ Million) Auto Financing (R$ Million)

SMEs & Auto Financing

• Approximately 530,000 companies

• Leveraging synergies with the group

(Fininvest, Unicard, Hipercard)

• Wide range of banking services

• Significant contribution to core deposits’

growth

21.5%

3,900

4,737

Mar-05 Mar-06

• Fast growing segment

• Operates nationwide through Unibanco

Financeira and in the accredited network of

auto dealers

• Better qualified, trained and remunerated

sales force

• Leader in financing heavy commercial

vehicles

25.1%

5,986

7,488

Mar-05 Mar-06


Fundamentals


Retail

Wholesale

Mar-06Mar-05Mar-04Dec-99

Loan Portfolio Mix

43%45%

57%55%49%33%

51%67%

Migration to fast growing segments with higher margins


Improved Funding Structure

Deposits

Core Deposits Evolution: Comparison

SuperPoupe

R$ millions

1 preliminary data

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

30%32%

35%

Mar-04 Mar-05 Mar-06

14.6%

6.3%National Financial System (1)

1Q06 vs 1Q05

403

1,030

1,6251,962

2,3502,628

3,044

3,604

Jun-04 Sep-04 Dec-04 Mar-05 Jun-05 Sep-05 Dec-05 Mar-06


R$ millionsEfficiency Ratio Evolution

Cost Management

Expenses

Revenues

Efficiency Ratio

2,815

1,187

1,355

2,212

1Q05 1Q06

48.1%

53.7%

48.1%49.2%51.3%52.8%

53.7%

59.5%61.2%63.4%

1,960 2,136 2,293 2,212 2,334 2,579 2,745 2,815

1,2421,308

1,3651,187 1,232

1,3231,351 1,355

2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06

1,921

1,143

1Q04

59.5%


Financial Performance


+29.7%

+16.8%

1Q06 / 1Q051Q06

R$520 million

R$834 million

Performance

24.0%

9.5

1Q06

23.0%

20.1%21.0%

23.3%24.2%

8.1

8.4

4Q04 1Q05

8.7

2Q05 3Q05

9.0

4Q05

9.3

3Q042Q041Q04

7.9

17.8%17.3%

16.1%

7.47.7

Net Income

Operating Income

Annualized ROAE (%) Stockholders’ Equity (R$ Bln)


Highlights

Results

Loan Portfolio Growth

Units

Cost Management

30% Net income growth, 1Q06 versus 1Q05

Financial margin (before provisions for loan losses) of R$2,357 million in 1Q06, R$514 million higher or 28% up compared to 1Q05

Individuals: 26% (Credit cards: 52%) SMEs: 25% Corporate: 13%

81% up in the last 12 months

Current weight in the Ibovespa: 1.623%

Efficiency ratio of 48.1%, a 560 b.p. improvement from 1Q05 (53.7%)

Stable Personnel and Administrative expenses, 1Q06 versus 4Q05

Insurance R$92 million net income, 21% up y-o-y

27.7% annualized ROAE

93.7% combined ratio in 1Q06, from 98.6% in 1Q05

Total: 19.6% in 12 months


81,64782,731

88,423

91,83193,770

Mar-05 Jun-05 Sep-05 Dec-05 Mar-06

33,176

35,15436,872

39,875 39,684

Mar-05 Jun-05 Sep-05 Dec-05 Mar-06

Financial Indicators

Total Assets (R$ millions) Loan Portfolio (R$ millions)

Financial Margin(before Provision for Loan Losses)

9.8%

10.3%

10.8% 10.8%10.9%

1Q05 2Q05 3Q05 4Q05 1Q06

Earnings per Share (R$)

0.29

0.32

0.34

0.360.37

1Q05 2Q05 3Q05 4Q05 1Q06


R$ millions

1T06 4T05 1T051Q06 4Q05 1Q05

1,715 1,606 1,533

863 891 751

(1,355) (1,351) (1,187)

(389) (398) (383)

834 748 714

(3) 5 (6)

(147) (137) (166)

(164) (107) (141)

520 509 401

Profit from Financial Intermediation (+) Fees from Services Rendered

(-) Personnel & Administrative Expenses

(+/-) Other Operating Income / Expenses

(=) Operating Income

(+/-) Non-Operating Income

(+/-) Income Tax and Social Contribution

(Effective Income Tax Rate)

(-) Profit Sharing / Minority Interest

Net Income

Income Statement

20% 20% 27%


100

100

100115

100 114

100

128

100

100

207

100

130

Mar-06Mar-05

1Q05 = 100

115

120

Loan Portfolio

Core Deposits

Financial Margin before Provision

Provision for Loan Losses

Fee Income Adm. Expenses Operating Income

Net Income

Performance – 1Q06 versus 1Q05

117


19.6%

Dec-05 Mar-06

-0.5%

1.3%

Mar-05

Wholesale

Retail

33,176

14,991

39,875

22,505

17,370

39,684

-2.8%

22,80618,185

16,878

R$ millions

Loan Portfolio Growth


Loan Portfolio Growth – Individuals and Corporate

Corporate

Individuals (R$ millions)

(R$ millions)

Mar-05 Dec-05

1.0%

12,19915,170

Mar-06

15,318

25.6%

16.2%

20,977

-1.4%

24,705

Mar-05 Dec-05 Mar-06

24,366

Main Highlights

Branch Network

Credit Cards

SMEs

Large Corporate

Auto Financing

Consumer Finance Companies (1.4)%

2.1%

(0.3)%

2.1%

(2.8)%

2.8%

Quarter

21.0%

12.9%

51.6%

25.1%

12.6%

21.5%

Year


109%

112%

113%

Mar-05 Dec-05 Mar-06Mar-05 Dec-05 Mar-06

AA-C

D

E-H

Loan Portfolio, by risk level Allowance for Loan Losses/Loan Portfolio E-H

Loan Portfolio Quality

92.3% 92.0%91.9%

4.6% 4.9%4.7%

3.1% 3.1%3.4%


1Q05

16.8%

4Q05

29.0%

1Q06

27.2%

10.9%

9.8%10.8%

7.6%7.9%8.1%

Financial Margin

Post Provision Financial Margin Financial Margin Provision for Loan Losses/Financial Margin


1Q05 4Q05

437

230

84

751

R$ millions

1Q06

491

282

90

521

289

81

891

Fees

Personnel and Other Adm. Expenses

Fees / Personnel and Other Adm. Expenses

Fees from Services Rendered

Banking fees

Credit Cards

Assets under management

Total Fees 863

63.3%

1,355

1,187

1,351

751 891 863

63.7%66.0%

1Q05 4Q05 1Q06


R$ millions

Personnel and Administrative Expenses

Other Administrative Expenses

Personnel Expenses

741

446

1Q05

813

542

1Q06

871

480

4Q05

1,187

1,3551,351

0.3%

4Q05

Commercial Bank 859

Subsidiaries 492

Total 1,351

1Q05

772

415

1,187

1Q06

888

467

1,355


Combined Ratio

93.7%

95.4%

98.6%

1Q05 4Q05 1Q06

4,724 5,376 5,628

1,217

1,4701,676

Mar-05 Dec-05 Mar-06

5,941

7,3047,846

22.9%

Private Pension Plans

Insurance

Technical ReservesR$ millions

Net Income

Extended Combined Ratio

83.7%

85.7%85.1%

1Q05 4Q05 1Q06

7679

92

1Q05 4Q05 1Q06

21.1%

Insurance and Private Pension Plans


Stocks


Units and GDSs

Unibanco Units gained 81% in the last 12 months

Unit continues to increase its weighting within the Ibovespa. Since its inclusion in the Ibovespa, in May 2005,

its participation increased 65%

ADTV during 1Q06 was R$30.2 million on the Bovespa and US$68.0 million on the NYSE

Units (UBBR11) versus Ibovespa

GDSs (UBB) versus Dow Jones

Brazilian Stock Index

Weight

May 2nd, 2006

Ibovespa 1.623%IBrX-50 3.615%IBrX-100 3.111%IGC Corporate Governance Index 4.523%ISE Susteinability Index 8.745%

I ndex


Perspectives 2006


Perspectives

2005 2006 (E)

Real GDP Growth (%) 2.3% 3.5%

SELIC (Enf of Year) 18.00% 14.50%

IPCA (Inflation) 5.7% 4.4%

Trade Balance (US$) 44.8 bi 39.0 bi

Macroeconomic Perspectives

Exchange Rate R$/US$ (Enf of Year) 2.34 2.20


Annex I

Dividends


143

Dividend History

35% 38% 37% 38% 35% 35% 36% 37% 35%

54 82 102 131 152 160 166204

186

8982

108133

171 180 196

244

238

1997 1998 1999 2000 2001 2002 2003 2004 2005

1st Half

2nd Half

164210

264

323 340 362

448

617

CAGR = 20%

R$ Million

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

Pay Out Ratio

48

1Q06

Quarterly Dividend


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

BUnibanco BB B

Moody’s

Long TermDebt

Long Term Deposits

Short Term Deposits

Financial Strength

Unibanco Ba1 NP C-B1

Brazil Ba3 B1 NP -

Global Scale: Foreign Currency Global Scale: Local Currency

Long Term Deposits

Short Term Deposits

Unibanco P-2A3

Brazil - -


Annex III

2005 – A Retrospective


Jan Global Public Offering of Units and GDSs

Jan Quarterly Interest on Capital Stock

Mar New Marketing Campaign

2005 Highlights

New logo New Service Model A more transparent and agile bank, working to surpass client

expectations

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

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


May Units Included in the Ibovespa

Jul Perpetual Bonds

0.984% weight at the time of inclusion in the Ibovespa index 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 1.623%

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

2005 Highlights


Sep Global 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

2005 Highlights

R$ 29.27

R$ 17.10

1 Average daily trading volume

172

UBBR11


Dec-05 Units 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”.

2005 Highlights


Investor Relationsphone: 5511-3097-1980

fax: 5511-3097-1585email: [email protected]

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.

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Investor Relations | page 1 Unibanco and Unibanco Holdings, S.A. Institutional Presentation March 2006 Investor Relations