Investor Relations

Investor Relations | 1

Investor Relations

April 2005


Favorable Outlook: Macro

Real GDP Growth Public Debt and Primary Surplus (as % of GDP)

Inflation¹ x Interest Rate

¹ IPCA 12-Month Moving Average

Trade Balance – US$ Billion

Source: Unibanco Research

3.7%

5.2%

0.5%

1.6%1.5%

4.4%

2000 2001 2002 2003 2004 2005E

2.65

13.11

24.83

33.07

26.70

-0.69

2000 2001 2002 2003 2004E 2005E

5.0

10.0

15.0

20.0

25.0

jan/

00jul

/

00jan

/

01jul

/

01jan

/

02jul

/

02jan

/

03jul

/

03jan

/

04jul

/

04jan

/

05

(%)

CDI IPCA

45.0%

48.0%

51.0%

54.0%

57.0%

60.0%

1999 2000 2001 2002 2003 2004E 2005E

3.0%

3.5%

4.0%

4.5%

5.0%

Public Debt Primary Surplus


Favorable Outlook: Banking in Brazil

Total Credit Expansion (R$ Billion)

Loan Penetration Comparison: 2003 (as % of GDP) Loan Penetration: Chile vs Brazil (as % of GDP)

380411

484

2002 2003 2004

Source: CSFB Research

54%

60%63% 64% 62% 63%

66% 67%66%

30%25% 26% 27% 25%

27% 26% 23% 26%

1995 1996 1997 1998 1999 2000 2001 2002 2003

Chile Brazil

161% 158%

139%124%

114%

67%

26% 20% 14% 9% 7%

China

Korea US

Hong

Kong

Spain

Chile

Brazil

Russia

Turke

y

Mex

ico

Argen

tina

Source: Central Bank

Source: CSFB Research

2004

63%

26%

17.8%


R$ Billion – 2004

AssetsLoans DepositsStockholders´Equity

1- Banco do Brasil 13.8x

2- CEF 8.2x

3- Bradesco 2.9x

4- Itaú 2.3x

5- Banespa 2.3x

6- Bamerindus 1.6x

7- 1.0x

8- Econômico 0.9x

9- Nossa Caixa 0.9x

1990 2004

Net Income R$ 1,283 Million

Snapshot of Unibanco

Market Cap

¹ In terms of total assets

Unibanco is Brazil’s third

largest private bank1…

…bridging the gap over it’s peers.

Multiple of Assets Multiple of Assets

² Based on GDS price as of 02/25/2005

Source: Unibanco Research

79.4

31.8 33.5

8.113.92

1- Banco do Brasil

3.3x

2- Bradesco

2.0x

3- CEF

2.0x

4- Itaú

1.7x

5-

1.0x

6- Santander Banespa

0.9x

7- ABN Real + Sudameris

0.8x

8- Safra

0.6x

9- HSBC + Lloyds

0.5x


Universal banking strategy reinforced with:

• A single CEO;

• Consolidation of back-office & supporting units;

• Leaner structures and processes with lower costs;

• Further cooperation between business and supporting units;

• Cross-selling goals linked to variable compensation;

• Botton-line driven;

• New compensation policy;

• Full allocation of labor and civil provisions to business units;

• Elimination of double-counting.

Leaner structures, faster decision-making processes

Greater management involvement in day-to-day activities

New Organizational Structure


Redesign of the wholesale area, focusing on client

relationship;

Insurance company restructured in life and P&C

product lines;

Closure of non-profitable business;

Cost-control discipline;

New marketing policy, new advertising agency and

renewed brand.



Retail

Márcio Schettini

Wholesale and Wealth Management

Demosthenes Madureira

Insurance and Pensions

José Rudge

Auditing Committee

Gabriel Jorge FerreiraChairman

Eduardo A. GuimarãesGuy Almeida Andrade

Members

Legal, Auditing, and Risk

Lucas Melo

Planning, Control, Operations, and

IR

Geraldo Travaglia

Corporate Communication

and HR

Marcos Caetano

Treasury

Daniel Gleizer

Pedro Moreira SallesCEO

Board of Directors

Pedro Sampaio MalanChairman

Pedro Moreira SallesVice-Chairman

Armínio Fraga Joaquim F. Castro Neto João D. Amoedo

Gabriel J. Ferreira Israel Vainboim Pedro Bodin

Board Members



Renewed Brand


Business Units

Investor Relations


Business Highlights

CROSS-SELLING

Insurance & Pensions

Loss ratio: improvement from 56.4% in 2003 to

46.9% in 2004;

# 4 rank in the Insurance & Pension industry with

a 8.0% market share, as of November 2004;

Combined ratio: improvement from 99.8% in

2003 to 98.8% in 2004;

24.5% revenue growth in the pension business.

As of December 2004.Retail

Strengthening of the consumer finance division:

Fininvest: 31% loan portfolio growth and 24% equity income growth;

HiperCard (acquired in March 2004): 53% loan portfolio growth.

SMEs: 40% loan portfolio growth, more than 450,000 clients;

Auto financing: 31% loan portfolio growth;

Funding: 25% core deposits growth.

Wholesale

Focus in 2 thousand clients: regional approach;

New results-oriented compensation policy;

M&A: CEMAT, Cia. Suzano (Bahia Sul) and Galvasud (Thyssen Krupp);

Capital Markets:

Fixed Income: 7.7% market-share ranking 4th in # of transactions.

Equity: 10% market-share ranking 2nd in # of transactions.

Wealth Management

22% growth in AUM (R$ 32.7 BN of Assets Under Management)

83% of retail mutual funds in the 1st profitability quartile;

Private Banking: 9.3% market-share (2nd in ranking).


Segmentation Strategy


Large Scale Distribution


Leading Consumer Finance Franchise


Acquisition

• Largest credit card issuer in the Northeast (2.7 million cards issued);

• Credit card brand accepted by approximately 70 thousand merchants.

Partnerships and organic growth

719894

1,100

Mar-04(acquisition)

Sep-04 Dec-04

53.0%

Credit Portfolio

Acquisitions and Organic Growth

36

52

3Q04 4Q04

44.4%Net Earnings (R$ million)


2004 Results

Investor Relations


Net Income R$ 1,283 million

Earnings per Share R$ 0.92

Annualized ROAE (%)

+ 22%

+ 20%

16.1%

17.3%17.8%

20.1%

1Q04 2Q04 3Q04 4Q04

Unibanco in 2004


4Q03 4Q04 2003 2004

Net Income

Financial Margin

Total Assets

Stockholders’ Equity

Annualized ROAE (%)

Earnings per Share (R$)

375

9.3%

79,350

8,106

20.1%

0.27

291

10.1%

69,632

7,156

17.5%

0.21

1,283

9.0%

79,350

8,106

16.8%

0.92

1,052

8.7%

69,632

7,156

15.3%

0.77

2003 2004

BIS Ratio 18.6% 16.3% -230b.p.

Fixed Asset Ratio 42.6% 39.5% -310b.p.

R$ Million

28.9%

-80b.p.

14.0%

13.3%

2.6%

28.1%

22.0%

30 b.p.

14.0%

13.3%

1.5%

20.1%

Performance Indicators


Consolidated Results - Year

11.9%

14.0%

10.5%

44.2%

280.0%

-31.2%

1.1%

5,112

3,241

(5,058)

(1,334)

38

(339)

(376)

(1)

1,283

4,567

2,842

(4,577)

(925)

10

(493)

(372)

-

1,052 22.0%

Profit from Financial Intermediation

(+) Fee Income

(-) Personnel & Adm. Expenses

(+/-) Other Operating Income / Expenses

(+/-) Non Operating Income

(-) Income Tax and Social Contribution

(+/-) Profit Sharing/ Minority Interest

Net Income

(+/-) Extraordinary items

R$ Million

2003 2004


Financial Margin

Financial Margin after ProvisionFinancial Margin

Provision for loan losses / Financial margin

6.6% 7.1%

8.7% 9.0%

2003 2004

34.0%

5.7%

8.7%

2002

24.0% 20.3%


R$ Million

Loan Portfolio Growth

4.6%

12.4%9.6%

5.5%

7.2%7.0%

31,796

14.7% Y-o-Y

Individuals

+23.2%

Corporate

+10.3%

29,72427,721

% Dec-04 / Dec-03

18,329 19,171 20,226

9,39210,553

11,570

Dec-03 Sep-04 Dec-04Note: Pro-Forma.


Other Products Commercial Bank

Auto Financing Consumer Finance Companies

Credit CardsSMEs Total Retail

Continuous Retail Loan Portfolio Growth

2,110

13,833

2,328

16,050

2,794

17,795

2,783 2,901 2,8592,8073,347 3,682

1,692 1,977 2,235

4,4415,497

6,225

Dec-03 Sep-04 Dec-04

31.2%

10.0%

32.1%

13.1%

40.2%

13.2% 32.4%

20.0%

2.7%

-1.4%

28.6%

10.9%

R$ million

Note: Pro-Forma.


54% 50% 44%

46% 50% 56%

Dec-02 Dec-03 Dec-04

Wholesale

Retail

31,79627,91726,751

Loan Portfolio Mix

R$ million


Loan Portfolio, by risk level

R$ million

5.4% 4.9% 4.7%

7.5% 5.5% 5.4%

9.7% 8.4% 9.1%

34.2% 37.2% 37.5%

40.7% 39.9% 39.9%

3.4%4.1%2.5%

Mar 04 Dec-04 Mar 05

27,140 31,796 33,176

AA

A

B

C

E-HD


Loan Portfolio Quality

Non-accrual portfolio/Loan

portfolio

Coverage ratio of non-accrual portfolio

Loan portfolio E-H / Total portfolio

Dec-03 Dec-04

115.1%

131.2% 4.8%

4.0%6.0%

4.9%

Dec-03 Dec-04 Dec-03 Dec-04


Deposits and Funding

Demand deposits 18.0

Saving deposits 0.8

SuperPoupe -

Core Deposits (A) 25.0

Time deposits and interbank deposits (B) 36.0

Total deposits (A+B) 32.2

Assets under management

3,220

5,966

1,625

10,811

22,720

33,531

32,979

2,729

5,918

0

8,647

16,710

25,357

26,945 22.4

R$ Million

Dec-03 Dec-04Annual

Change (%)


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

Collection

Main actions:

SuperPoupe

Core Deposits

104202

403

604

844

1,030

1,2221,349

1,625

Apr-04May-04Jun-04 Jul-04 Aug-04Sep-04Oct-04Nov-04Dec-04

R$ million

12 Months 2004 / 2003

Unibanco Bradesco Itaú BB

Demand Deposits 18% 19% 15% 7%

Saving deposits + Superpoupe 28% 12% 9% 13%

Market

20%

11%

Core Deposits 25% 15% 11% 10% 14%

Source: Companies and Central Bank data.


Fee Income

Fee Income / Personnel and administrative expenses

62.0%

64.1%

2003 2004

61.8%

2002

Fee Income 786 851 2,842 3,241 14.0%

R$ Million

4Q03 4Q04 2003 2004

2004/2003


Personnel and Administrative Expenses

Employees

Commercial BankSubsidiaries Excluding Acquired Companies and Credicard / Orbitall

Acquired CompaniesSubtotalCredicard / OrbitallTotal

879

383

54

1,316

49

1,365

787

367

2

1,155

81

1,237

3,176

1,440

145

4,761

297

5,058

2,904

1,361

2

4,267

310

4,576

29,025

27,408

Jun-04 Dec -04

R$ Million

4Q03 4Q04 2003 2004

11.7%

4.4%

2,600%

13.9%

-39.5%

10.3%

9.4%

5.8%

7,150%

11.6%

-4.2%

10.5%


Cash inflow of R$1.7 billion;

Valuation: 17.1x earnings and 10.4x book value;

Redecard (credit card acquirer) not included in the transaction;

Unibanco’s presence in this market:

• 8.0 million credit cards;

• 9.5 million private label cards;

• Full processing capability.

Income fully directed to strengthen balance sheet

Credicard and Orbitall Sale

Accretive to earnings.

R$ million

Price 1,685

Book value of investment (150)

Gross profit on sale 1,381

Goodwill amortization of acquired companies (828)

Provision for restructuring, credit and other assets, and tax litigation

(826)

Tax effects 272

Net result (1)

Provision for due-dilligence adjustments (154)


R$ Million

Insurance and Pension

Net Premium Written + Pension Revenues

Insurance and Pension Reserves

Net Income

Loss RatioCombined Ratio

1,025

5,533

76

41.7%

97.3%

825

3,923

56

55.3%

97.7%

4,253

5,533

300

46.9%

98.8%

3,468

3,923

265

56.4%

99.8%

46.9%

2,249

2,735

2003 2004

Net Premiums Written Loss Ratio

56.4%

Premium vs. Loss Ratio

4Q03 4Q04 2003 2004

Combined Ratio

UBB: (Operational + administrative + selling expenses) / (premium written).

UASEG (including Garantech) x Market

99.8% 98.8%104.7% 104.0%

2003 2004

Unibanco Market

24.2%

41.0%

35.7%

-1,360 b.p.

-40b.p.

22.6%

41.0%

13.2%

-950 b.p.

-100 b.p.


BranchNetwork

ConsumerFinance

CreditCards

Autos

Insurance &Pension

UAM

Private

Focus on higher margin and fast growing businesses

High

Low

Marg

in

Low HighGrowth

Wholesale

SMEs

2005 Perspectives


2005 Perspectives: A Good Start


GDP growth 5.2% 3.7%

FX Rate (R$ / US$) (year-end) 2.6544 2.80

SELIC (year-end) 17.75% 16.75%

IPC-A (inflation index) 7.6% 5.9%

2004 2005(E)

2005 Perspectives


Loan Portfolio

CorporateLargeSmall / Medium

IndividualsCommercial bank and auto financingConsumer FinanceCredit Cards

Administrative Expenses

2004

14.7%

10.0%0.8%

40.2%

23.2%17.0%32.1%32.4%

10.5%

2005Guidance

< 5%

15-20%

5-10%25-30%

20-25%20-25%25-30%

10-15%

20-25%

2005 Perspectives


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For further information contact our Investor Relations Area at

phone: 5511-3097-1980fax: 5511-3813-6182

email: [email protected]: 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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