Investor Relations | page 1. Investor Relations | page 2 Overview of Unibanco

Investor Relations | page 1


Overview of Unibanco


Highlights

Publicly traded at Bovespa (Brazil) and NYSE

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

Controlled by the Moreira Salles group

Level I Corporate Governance on the Bovespa

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


A Snapshot of Unibanco


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

(As of December 2005)

17,020 Points of Service

Branches

NorthNortheast

Southeast

South

Mid-West

1168

676

116

43

Brazil 914

Corp. Site Branches

842

31223

45

349

70380

1331,909

244

2,736

329

1,4851,043

6,2832,881

Points of Sale

12,021

4

3717

19130

Stores

279

Mid-West 41

Southeast 426South 254

Stores

Brazil 721

Consumer Finance Companies

NorthNortheast

Southeast

South

Mid-West

Brazil

NorthNortheast

Southeast

South

Mid-West

Brazil

NorthNortheast

Southeast

South

Mid-West

Brazil

NorthNortheast

Southeast

South

Mid-West

BrazilSmall Business

(Annual Sales < R$5 million)

Large Companies(Annual Sales > R$150 million)

Upper Middle Market

(R$40 million < Annual Sales < R$150 million)

Private Bank(Financial Investment >

R$3 million)

UniClass Segment (Monthly Income > R$4,000)

Exclusive Segment(R$350 < Monthly Income

< R$4,000)

Corporate Individuals

Lower Middle Market

(R$5 million < Annual Sales < R$40 million) PAYROLL

Wholesale Retail PrivateBanking


Greater focus on higher margin and faster growing businesses

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

Fully- Owned

Alliances

2,292

3,068

33.9%

Dec-04 Dec-05

Joint-Ventures


Credit Cards

Loan Portfolio (R$ Million)

43.2%

2,794

4,001

Dec-04 Dec-05

• Acquirer, issuer and processor of credit cards• Accept by more than 120 thousand retailers

• Issues Visa and Mastercard cards• Alliances with retailers

Highlights


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

SMEs & Auto Financing

• Approximately 510,000 companies

• Leveraging synergies with the group

(Fininvest, Unicard, Hipercard)

• Wide range of banking services

• Significant contribution to core deposits’

growth

25.2%

3,682

4,609

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

30.3%

5,629

7,335

Dec-04 Dec-05


Fundamentals


Dec-99

Wholesale

52%

48%

Dec-03 Dec-04

Shift in the Loan Portfolio Mix

Dec-05

50%

50% 46% 44%67%

33%

Retail54% 56%

Migration to faster growing segments with higher margins


Improved Funding Structure

Deposits

Core deposits

Time deposits

2003

8,647

16,710

25,357

22,720

2004

10,811

33,531

2002

8,973

17,015

25,988Total deposits

12,451

23,048

35,499

2005

Growth in 2005

15.2%

8.5%National Financial System (1)

Core Deposits Evolution: Comparison

SuperPoupe

403

1,030

1,6251,962

2,3502,628

3,044

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

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


Cost Management

4Q04 4Q05 2004 2005

2,293 8,310

5,058

60.9%

1,365

51.3%

5,092

9,878

51.5%

1,351

2,745

49.2%

18.9%

0.7%

%

R$ millions

3Q04 3Q052Q051Q05

59.5%63.4% 61.2% 59.5%

53.7% 52.8%

1Q04 2Q04

2,579

1,323

2,136

1,308

2,209

1,186

1,921

1,143

1,960

1,242

2,334

1,232

Efficiency Ratio Evolution

Expenses

Revenues

Efficiency Ratio


Performance Evolution: 2005

6.7 6.8 7.0 7.27.4

7.77.9

8.18.4

1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05

R$

bill

ion

Annualized ROAE (%)Stockholders’ Equity

8.7

2Q05

Net Income R$1,838 million

Operating Income R$2,921 million

+43.3%

+49.0%

2005 / 2004

9.0

3Q05

21.0%

13.8%

17.5%17.1% 16.5% 16.1%

17.3%17.8%

20.1%

23.0%23.3%

9.3

4Q05

24.2%


Financial Performance


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

Individuals: 31.1%

Credit Cards: 43.2%

SMEs: 30.3%

Large Corporate: 19.0%

1.0% decrease in personnel and administrative expenses, 4Q05 versus 4Q04

Over the year, an increase of 0.7%

25.4% total annual growth

Results

Loan Portfolio Growth

Cost Management

Units

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


Income Statement

R$ Million

Profit from Financial Intermediation 6,343

(+) Fees from Services Rendered 3,270

(-) Personnel & Administrative Expenses (5,092)

(+/-) Other Operating Income / Expenses (1,600)

(=) Operating Income 2,921

(+/-) Non-Operating Income 9

(+/-) Income Tax and Social Contribution (601)

(Effective Income Tax Rate) 23%

(-) Profit Sharing / Minority Interest (491)

Net Income 1,838

2005

5,087

3,241

(5,058)

(972)

1,961

37

(339)

19%

(376)

1,283

2004


Performance: 2005 versus 2004

20052004

(*) Excludes Credicard/Orbitall


Financial Indicators

Total Assets (R$ millions)

79,350

82,10982,731

88,423

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

91,831 Loan Portfolio (R$ millions)

31,79633,176

35,154

36,872


39,875

Financial Margin(before Provision for Loan Losses)

9.4%

9.7%

10.3%

10.8%

4Q04 1Q05 2Q05 3Q05 4Q05

10.8%

BIS Ratio (%)

18.2%17.3%

16.3% 16.1%16.4%



Earnings per Share


Loan Portfolio Growth

WholesaleRetail


Loan Portfolio Growth – Individuals and Corporate

Corporate

Individuals (R$ millions)

(R$ millions)

Dec-04 Sep-05

7.9%

11,57014,061

Dec-05

15,170

31.1%

24,705

22.1%

20,226

8.3%

22,811

Dec-04 Sep-05 Dec-05

Main Highlights over 12 months:

Consumer Finance Companies 31.6%

26.6%

43.2%

Branch Network

Credit Cards

SMEs 30.3%

19.0%Large Corporate

25.2%Auto Financing


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

Loan Portfolio Quality


Financial Margin

Financial MarginFinancial Margin after Provision Provision for Loan Losses/Financial Margin

2004 2005

7.1%

8.9%

20.4%

7.7%

10.0%

23.1%

7.2%

4Q04

9.4%

22.6%

7.6%

4Q05

10.8%

29.0%

Financial margin has consistently increased over the last quarters


-

4Q05 4Q04

517 445

289 248

85 98

891 791

- 60

891 851

Fees from Services Rendered

R$ millions

2005 2004

Banking fees and other fees and commissions 1,880 1,662

Credit Cards 1,051 841

Assets under management 339 385

Subtotal 3,270 2,888

Credicard and Orbitall - 353

Total Fees from Services Rendered 3,270 3,241891 851


Personnel and Administrative Expenses

Fees from Services Rendered/ Personnel Expenses

Fees from Services Rendered/ Personnel and Adm. Expenses

62%

66%64% 64%

156%

186%

161%

171%

4Q04 4Q05 2004 2005

R$ millions

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


Stocks


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 (%)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

ISE (*) n/a 9.569

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

Index


Perspectives 2006


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


Annex I

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 1.564%

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

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

1 Average daily trading volume


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


Retail

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

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 logoNew marketing campaign

2005 Business Units Highlights


Insurance

Wealth Management

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

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

2005 Business Units Highlights


Annex II

Dividends


Dividend History

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

1st Half

2nd Half

R$ Million

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

Pay Out Ratio


Annex III

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 IV

New marketing campaign


Renewed Brand - 2005


For further information contact our Investor Relations Area atphone: 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.

Documents

Investor Relations | page 1. Investor Relations | page 2 Overview of Unibanco