1
Consolidated Results 2003
Conference CallFebruary 13th, 2004
2
R$ Million
Performance Indicators
2003 2002
2003/2002
Net Income 1,052 1,010 4.2%
Earnings/1000 shares (R$) 7.65 7.29 4.9%
Operating income 1,906 1,083 76.0%
ROAE 15.3% 16.0% -70 b.p.
BIS Ratio 18.6% 15.7% 290 b.p.
Total Loans 27,917 26,751 4.4%
Deposits+Funds 52,302 44,372 17.9%
Stockholders' Equity 7,156 6,559 9.1%
Dividends/Interest on Capital Stock- net 362 340 6.5%
3
R$ Million
Consolidated Results
13.8%
17.1% 16.5%17.5%
1Q03 2Q03 3Q03 4Q03
ROAE (%)
4Q03 3Q03 4Q02
Profit from Financial Intermediation 1,353 1,276 876
(+) Fee Income 785 702 713
(-) Personnel & Adm. Expenses (1,236) (1,182) (1,073)
(+/-) Other Operating Income/Expenses (447) (368) (294)
(=) Operating Income 455 428 222
(+/-) Non-Operating Income (expenses), Net 2 (7) 30
(=) Income Before Taxes & Profit Sharing 457 421 252
(+/-) Income Tax & Social Contrib. (66) (56) 79
(-) Profit Sharing/Minority Interest (100) (95) (65)
Net Income 291 270 266
4
R$ Million
Impacts on Investments Abroad
-18.2%
2003 2002
Investments Abroad (US$ Million) 842 1,015
Exchange Rate (R$/US$) 2.8892 3.5333
Exchange Rate Fluctuation on Investments Abroad (631) 1,187
Hedge on Investments Abroad 636 (794)
Net Accounting Impact before Income Tax and Social Contribution 5 393
Fiscal Effects (215) 404
Net Impact after Income Tax and Social Contribution (210) 797
5
R$ Million
Financial Margin
4Q03 3Q03%
4Q03/3Q03
Revenue from Financial Intermediation 3,016 3,486 -13.5%
Expenses on Financial Intermediation (1,321) (1,794) -26.4%
Financial Margin before Provisions for Loan Losses (A) 1,695 1,692 0.2%
Provisions for Loan Losses (342) (416) -17.8%
Financial Margin after Provisions for Loan Losses 1,353 1,276 6.0%
Total Average Assets (-) Fixed Assets (B) 65,611 63,800 2.8%
Net Financial Margin (A/B) 10.7% 11.0% -30 b.p.
6
R$ Million
Securities Portfolio
Dec-03 % Porfolio Dec-02 % Porfolio
Trading Securities 5,845 39% 4,957 28%
Securities Available 3,452 23% 6,411 35%
for Sale
Securities Held
to Maturity 5,773 38% 6,610 37%
Total Securities 15,070 17,978
7
R$ Million
Securities Portfolio – Market Value Adjustment
Market Value
AdjustmentDec 31,2003
Market Value
Adjustment
Income Statement Impact 171 190 (19)
Stockholders´ Equity Impact (318) 101 (419)
Total Impact (147) 291 (438)
Held to Maturity 394 1,397 (1,003)
Dec 31,2002
8
R$ Million
Loan Portfolio Breakdown
4.4%
Retail Bank
Wholesale Bank
10,881 11,401 12,123
15,870 15,223 15,794
Dec-02 Sep-03 Dec-03
+4.8%
-4.1%
-0.5%
+6.3%
+3.8%
+4.9%26,751 26,62427,917
9
Loan Portfolio Breakdown
Corporate
14,566
1,159 2,324
18,049
13,888
1,5143,064
18,466
Large Corporate Middle Market Small Companies Total Corporate
-4.7%
+30.6%+31.8%
+2.3%
5,225
1,462 2,015
8,702
5,453
1,6722,326
9,451
Total Individuals
+4.4%
+8.6%
+15.4%+14.4%
Fininvest / PontoCred /
LuizaCredUnicard / Credicard 2002
Individuals
2003
R$ Million
Multiple Bankand Other Companies
10
Loan Portfolio Breakdown
R$ Million
27,917
17.0% 12.2%7.9%
10.1%9.9%
9.8%
29.0% 33.9%34.5%
34.9% 34.5% 39.0%
9.0% 9.5% 8.8%Dec-02 Jun-03 Dec-03
26,751 26,195
91.0%90.5%
91.2%
AA-C Loan Porfolio / Total Loan Portfolio
AA
D-H
A
B
C
11
Non-Accrual Portfolio / Loan Portfolio
4.2% 4.4%5.5%
6.0%
4.8%
140.5%
126.5%
102.8%96.6%
115.1%
Dec-02 Mar-03 Jun-03 Sep-03 Dec-03
Non-Accrual Portfolio / Loan Porfolio
Coverage Ratio of Non-Accrual Portfolio
12
Net Write-Off / Loan Portfolio
Required Provision vs. Additional
Loan Portfolio
87% 87% 86%
13% 13% 14%
Dec-02 Jun-03 Dec-03
Additional Provision / Total Provision
Minimum Required Provision / Total Provision
1.1% 1.1%
0.7%
4Q02 2Q03 4Q03
13
R$ Million
Funding
25,988 25,357
18,38426,945
Dec-02 Dec-03
FundsDeposits
44,372
52,302
-2.4%
+46.6%
+17.9%
14
Issues – Capital Markets
DateIssue Amount
(Million)Term Maturity Coupon Return (p.y.)
US$ 1.4 billion raised in 2003
EUROBONDS
Jan-03 US$ 100 1 year Jan/04 6.875% 7.000%
Jul-03 US$ 125 18 months Jan/05 4.000% 4.000%
Jun-03 US$ 105 6 years Jul/09 6.150% 6.150%
Nov-03 US$ 226 10 years Oct/13Libor + Libor +2.860% 2.860%
SECURITIZATION
Dec-03 US$ 2001st to 5th year Dec/08 7.375%
8.200%6th to 10th year Dec/13 9.375%
TIER II
Jan-04* US$ 100 18 months Aug/05 3.000% 3.050%
Jun-03 US$ 120 6 years Jul/09Libor +4.250%
Libor +4.250%
15
Net Revenue by Business
Net Financial Result
Banking Fees
Credit Cards
Insurance/Annuities/Pension Plans
Asset Management Fees
11%
7% 5% 4% 4%
12% 11% 11%
15% 21% 21% 19%
20% 22% 27% 25%
46% 40%37%
41%
1998 2000 2002 2003
16
Direct Management Indirect Management
Consumer Companies
Tricard
17
Main Indicators
R$ Million
Consumer Companies: Fininvest, Unicard, 50% LuizaCred, 50% PontoCred and 33.3% Credicard
Consumer Companies
2003 2002%
2003/2002
Billings 23,067 20,139 14.5%
Equity Income 504 407 23.8%
Credit Portfolio 4,060 3,511 15.6%
Loan Losses 765 881 -13.2%
Loan Losses / Credit Portfolio 18.8% 25.1% -630 b.p.
Volume of Transactions (in million) 338 274 23.4%
18
R$ Million
Consumer Companies Under Management: Fininvest, Unicard, 50% PontoCred and 50% InvestCred.
Consumer Companies Managed by Unibanco
Main Indicators
Consumer Companies
Billings 10,088 9,277 8.7%
Equity Income 308 163 89.2%
Credit Portfolio 2,782 2,411 15.4%
Loan Losses 647 778 -16.8%
Loan Losses / Credit Portfolio 23.3% 32.2% -890 b.p.
Volume of Transactions (in million) 122 111 9.9%
2003 2002%
2003/2002
19
R$ Million
Main Indicators
Consumer Companies
Billings 3,574 3,440 3.9%
Equity Income 159 53 200.0%
Credit Portfolio 1,358 1,202 13.0%
Loan Losses 355 498 -28.7%
Loan Losses / Credit Portfolio 26.1% 41.4% -1530 b.p.
ROAE 49.5% 23.5%
Administrative and Personnel Expenses 387 424 -8.7%
2600 b.p.
2003 2002%
2003/2002
20
Main Indicators
R$ Million
Consumer Companies
2003 2002
2003/2002
Billings 5,428 4,823 12.5%
Equity Income 130 96 35.4%
Credit Portfolio 1,065 915 16.4%
Loan Losses 234 233 0.4%
Loan Losses / Credit Portfolio 22.0% 25.5% -350 b.p.
Number of Credit Cards (in thousands) 4,385 3,853 13.8%
21
Insurance + Private Pension Plans
Technical Reserves
R$ Million
Dec-02 Jun-03 Dec-03Insurance Private Pension Plans
4Q03 3Q03 4Q02 2003 2002
2003/2002
Billings + Premiums Written 788 728 630 3,373 2,460 37.1%
Net Income 54 57 62 258 254 1.6%
Equity Income 27 28 31 129 127 1.6%
825
2,7853,532
+26.8%
3,892
+10.2%
+40%
825781
2,004
809
2,723
821
3,071
22
Market Share – Premiums Written
Insurance
Source: SUSEP and ANS
Administrative Expenses / Premiums Written
1998 2000 2002 Nov-2003
7.21%
6.65%
4.90%
2.88%
17.1%
13.0%10.6% 9.8%
2000 2001 2002 2003
23
15.5%
23.0%
IPC-A
Unibanco
8.2%
Total Expenses
IPC-A
Unibanco
9.3%
3,963 4,2334,578
2001 2002 2003
R$
mill
ion
Personnel and Administrative Expenses x IPC-A
Total Expenses - Unibanco Consolidated
24
59.4% 63.5% 61.8% 62.0%
143.0%
170.6%158.9% 160.1%
3Q03 4Q03
66.4%
177.7%
4Q02 2002 2003
Fee Income / Personnel Expenses
Fee Income / Personnel and Administrative Expenses
Fee Income / Personnel and Administrative Expenses
25
In Million
0.8
3.7 4.05.2 5.6 6.0
0.7
3.03.9 3.5
4.0
2.9 3.03.0
1.1 1.11.1
Dec-94 Dec-99 Dec-00 Dec-01 Dec-02 Dec-03
7.7
13.1 13.214.1
Note: Unibanco includes saving account holders and retirees, from 1999.
Operational Highlights
Client Base
26
Corporate Governance
Unibanco HoldingsUnibanco
Chairman: Pedro Moreira Salles
Vice-Chairmen: Gabriel Jorge Ferreira
Pedro Sampaio Malan
Board Members: Israel Vainboim
Pedro Bodin de Moraes
Armínio Fraga
Chairman: Roberto Konder Bornhausen
Vice-Chairman: Pedro Moreira Salles
Board Members: Israel Vainboim
Tomas Zinner
Gabriel Jorge Ferreira
Carlos Alberto Cruz
Guilherme Affonso Ferreira
Koji Yamada
Unibanco
Board of Directors - after General Meeting on January 23th, 2004
Tomas Zinner
27
For further information contact our Investor Relations Area at
phone: 5511-3097-1626 / 1313fax: 5511-3813-6182
email: [email protected]: www.unibanco.com
(select Investor Relations option)
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.