Investor Relations | page 1

Investor Relations | page 1Investor Relations 1

Institutional PresentationDecember 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 4th consecutive year

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

A Snapshot of UnibancoAs 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 4th in the ranking of private pension plans published by Susep. The company ranked 2nd in sales of corporate pension plans• Balanced business mix

• Aggressive expansion in the retail segment

• Benchmark in consumer finance and wholesale business

• 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

• 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


Corporate Communication and HR

Marcos Caetano

Legal, Tax, Audit, Compliance, and Risk

Lucas Melo

Wholesale and Wealth Management

Demosthenes Madureira

Audit Committee

Gabriel Jorge FerreiraChairman

Members

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

CEO

Pedro Moreira Salles

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


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

As anticipated by Unibanco in 2005

2,292

3,068 2,910

Dec-04 Dec-05 Dec-06

R$ MillionsLoan Portfolio

Consumer Finance Companies

R$ Millions

107154

4Q04 4Q05 4Q06

232

6.0%6.7%

7.2%

Jun-05 Dec-05 Jun-06

7.6%

Dec-06

5.9%

Feb-05

24% 26% 27%31%

2002 2003 2004 2006

33%

2006

Credit / GDP

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


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

1472006

114

120

2006

97

MarketMarket

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$ MillionsR$ Millions


Loan Portfolio (Unicard + Hipercard)

Credit Cards

Number of cards (In millions)

+26.7%

4,001

5,070

Dec-05 Dec-06

R$ Millions

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

Highlights

• Acquirer, issuer and processor of credit cards• Accepted by more than 200 thousand retailers

• Issues Visa and Mastercard cards• Alliances with retailers


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-04Acquisition

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

BanCrBanCreded

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 20062004

R$ Millions

9.3

8.1

21.1%

16.8%

22.4%

Net Income(1)

Operating Income

+ 13.2%

+ 20.2%

4Q06/4Q054Q06

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

4Q054Q04

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

UnitsUBBR11

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. 1st place in Natural Resources category, and 3rd 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 4th 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 andPension Plans

WealthManagement


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

1,6011,956

889909

(1,348)(1,527)

759912

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)

2,2572,489 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

19,42116,926

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


Motorcycle Financing

SMEs

Large Corporate


Financial Margin

Net Financial MarginFinancial Margin

23.3%

29.1%27.2% 27.9%

Provisions for Loan Losses / Financial Margin

-770 b.p.

4Q05 2Q06 3Q061Q06

21.4%

4Q06

18.00%

13.25%

Selic Interest Rate

2005 2006

10.2%

10.0%

7.7% 7.7%


Asset Quality

D-H Portfolio/ Loan Portfolio


6.4%6.7%7.7%115%

114%

112%


Coverage E-H Portfolio

Coverage D-H Portfolio

92%87%

67%



441

548

599

Dec-05 Jun-06 Dec-06

+35.8%

R$ Millions

Additional Allowance for Loan Losses



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


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


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 DepositsR$ Millions

10,81112,451

Dec-04 Dec-05

16,172

Dec-06

(1) Source: Brazilian Central Bank, preliminary data.

29.9%

14.3%Brazilian Financial System (1)

Dec 06vs

Dec 05

Dec 06vs

Dec 04

49.6%

23.9%

+49.6%

Core Deposits Growth

Core Deposits Comparison


Revenues

R$ MillionsEfficiency 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 ReservesR$ Millions

Premiums Earned

Pension Plans

Insurance

1,713

2,038

2005 2006

+19.0%

5,3766,345

1,470

1,9536,846

8,298+21.2%

2005 2006

Combined Ratio

98.3%

2005

94.5%

2006

Loss Ratio

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%

PNUnibanco Holdings

PN Unibanco

+ UNITs76,7%

Shareholders’ Structure

% of Unibanco shares

% of Unibanco shares

Thousands of Shares

1 GDS=10 Units


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.

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 JonesUnits Weighting in Brazilian Stock Indices


Annex I

Dividends


143

Dividend History

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

54 82 102 131 152 160 166204

283

8982

108133

171 180 196

244

334

1997 1998 1999 2000 2001 2002 2003 2004 2005

164210

264

323 340 362

448

617

CAGR = 20%

2006

403

757

36%

1st Half

2nd 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

BUnibanco BB B

Moody’s

Long TermDebt

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-1A1

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 Relationsphone: 5511-3584-1980

fax: 5511-3584-1585email: [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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