Investor Relations | 1 Unibanco and Unibanco Holdings, S.A.

Investor Relations | 1

Unibanco and Unibanco Holdings, S.A.Unibanco and Unibanco Holdings, S.A.


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

+ 21%

+ 27%

2Q06/2Q052Q06

548

869

Performance

9.5

1Q06

8.7

2Q052Q04

7.7

9.8

2Q06

1H06

1,068

1,703

1H06/1H05

1H05 1H061H04

R$ Millions

+ 25%

+ 22%

8.7

7.7

9.821.4%

16.4%

23.6%

Net Income

Operating Income

24.0%

23.0%

17.3%

24.7%


Highlights

Results

Loan Portfolio

Units

UBBR11

Efficiency

25% net income growth, 1H06 versus 1H05

Financial margin (before provisions for loan losses) grew to 10.6% in 1H06, vis-a-vis 10.1% in 1H05 – despite declining interest rates

Growth of 5.7% in 2Q06 19.3% up in 12 months. Highlight to credit cards portfolio growth: 42.9%

Approximately 60% gain over the past 12 months

Higher weight in the Ibovespa index: 1.825% (1)

Stock Dividend (Bonificação de Ações) aimed at increasing liquidity

Efficiency ratio of 47.5%, a 530 b.p. improvement from 2Q05 (52.8%)

1.3% change in personnel and administrative expenses, 2Q06 versus 1Q06

Insurance

29.3% ROAE in 2Q06

93.9% combined ratio in 1H06, from 99.2% in 1H05

47.3% loss ratio in 2Q06, from 55.6% in 1Q06

(1) 1st Preview of the Theorical Portfolio Sep - Dec 2006.


Financial Indicators

Profit from Financial Intermediation

Total Assets Loan Portfolio

Earnings per Share (R$)

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

35,154

36,872

39,875 39,684

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

41,929

Jun-06

2,0052,159

2,262

2,357

2Q05 3Q05 4Q05 1Q06

2,392

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

R$ Millions

82,884

88,423

91,83193,770

98,217

0.16

0.17

0.18

0.190.20


Income Statement

2Q06 1Q06 2Q05 1H06 1H05

R$ Millions

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

3,103

1,534

(2,420)

(818)

1,399

16

(295)

(266)

854

24%

1,724 1,715 1,570

901 863 783

(1,373) (1,355) (1,233)

(383) (389) (435)

869 834 685

(3) 22

(159) (147) (129)

(163) (164) (125)

548 520 453

21% 20% 21%

3,439

1,764

(2,728)

(772)

1,703

(2)

(306)

(327)

1,068

21%

1


100

100

100

108

100 101

100 102

100

100104

100105

2Q061Q06

104 104

106

Performance – 2Q06 versus 1Q06

Fee Income

Core Deposits

Loan Portfolio

Financial Margin before Provision

Provision for Loan Losses

Adm. Expenses Operating Income

Net Income

1Q06 = 100


100

100

Fee Income

100

Core Deposits

120

100

119

100

100

154

100

121

2Q062Q05

2Q05 = 100

Performance – 2Q06 versus 2Q05

115

127

119

Loan Portfolio

Financial Margin before Provision

Provision for Loan Losses

Adm. Expenses Operating Income

Net Income

100111


Loan Portfolio Quality

Loan Portfolio, by risk level

92.0% 93.1%

Jun-05 Mar-06 Jun-06

AA-C92.8%

+33%

Additional allowance for loan losses (R$ Millions)

8.0% 6.9% D-H7.2%


412

494

548


Loan Portfolio Coverage


Allowance for Loan Losses / Loan Portfolio

Consumer Finance Companies

Credit Cards

Commercial Bank - Individuals

Auto Financing

SMEs

Retail

Wholesale

Unibanco Consolidated

10.1%

7.7%

9.1%

4.4%

5.2%

6.7%

4.0%

5.6%

11.0%

8.5%

8.8%

4.8%

5.7%

7.2%

3.6%

5.6%

9.4%

4.5%

7.6%

2.8%

4.0%

5.2%

4.6%

4.9%


Financial Margin

Provision for Loan Losses/Financial Margin

2Q05

21.7%

1Q06

27.2%

2Q06

27.9%

10.7%

10.5%

10.9%10.6%

10.1%

8.1%

1H05 1H06

19.4% 27.6%

8.1% 7.9%7.6% 7.6%

Post Provision Financial Margin Financial Margin


Loan Portfolio Mix

Retail

Wholesale

Jun-06Jun-05

50%

Jun-04Dec-99

33%

67% 50%44%

56%

44%

56%

44%

56%


Loan Portfolio Growth

19.3%

Mar-06 Jun-06

5.7%

2.8%

Jun-05

35,154

39,684

23,281

16,403

41,929

9.7%

23,934

20,100

17,99515,054

R$ Millions

Retail(1)

Wholesale

(1) It includes acquired credit of individuals, cosigned by the financial institutions that sold the credits.


Loan Portfolio Growth – Individuals and Corporate

Corporate

Individuals(1)

Jun-05 Mar-06

1.6%

13,686

15,793

Jun-06

16,048

17.3%

20.6%

21,468

8.3%

23,891

Main Highligths

25,881

-2.1%

3.3%

5.3%

9.7%

Quarter

14.0%

42.9%

22.9%

19.5%

Year


R$ Millions

R$ Millions

Branch Network

Credit Cards

Auto Financing

Consumer Finance Companies

SMEs

Large Corporate

-1.7%14.4%

4.9%8.1%

(1) It includes acquired credit of individuals, cosigned by the financial institutions that sold the credits.


Deposits and Assets under Management

4,405 3,958 3,546

5,187 5,248 5,635

4,201 3,604 2,350

13,793 12,810 11,531

24,984 23,905 23,324


Demand Deposits

Saving Deposits

TDCs - Core Deposits

Core Deposits

Time Deposits

Assets Under Management (B)

Total Deposits + Debentures + AUM (A+B)

Total Deposits + Debentures (A)

R$ Millions

Debentures 5,065 4,820 1,381

43,842 41,535 36,236

84,923 81,459 71,355

41,081 39,924 35,119

35%36% 33%Core Deposits / Total Deposits


Working on the Fundamentals

Core Deposits1 Source: Brazilian Central Bank, preliminary data

19.6%

7.3%SFN 1

Core Deposits Evolution

Jun 06vs

Jun 05

TDCs Core Deposits

Jun 06vs

Mar 06

7.7%

0.2%

R$ Millions

403

2,350

Jun-04 Jun-05

4,201

Jun-06

Jun 06vs

Jun 04

47.9%

17.2%

Nacional Financial System Unibanco

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

Credit Core Deposits Core/Credit

106

47%38%

128

132

34%

33%

132

Dec-04=100 Dec-04=100

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


Fee Income

1Q06

2Q05

453

246

84

Total 783

491

282

90

863

2Q06

525

294

82

901

Fee Income/ Personnel and Administrative Expenses

R$ Millions

Banking fees

Credit Cards

Assets under management

1H061H05

890

476

168

1,534

1,016

576

172

1,764

63.5%63.7%

65.6%

2Q05 1Q06 2Q06

63.4%

64.7%

1H05 1H06


Personnel and Administrative Expenses

1Q06

888

467

Total 1,355

2Q05

795

438

1,233

2Q06

893

480

1,373

1,567

853

2,420

1,781

947

2,728

2H051H05 1H06

R$ Millions

Commercial Bank

Subsidiaries

Other Administrative Expenses

Personnel Expenses

1,718

954

2,672

766

467

2Q05

829

544

2Q06

813

542

1Q06

1,233

1,3731,355

1.3%

1,507

913

1H05

1,642

1,086

1H06

1,674

998

2H05

2,420

2,7282,672

2.1%


Working on the Fundamentals

Efficiency Ratio Evolution R$ Millions

RevenuesEfficiency Ratio Expenses

48.1%

52.8%

63.4%

2Q04 2Q05 1Q06

47.5%

2Q06

1,9612,337

2,815

1,242 1,2331,355

2,891

1,373


Insurance and Private Pension Plans

84

92

97

2Q05 1Q06 2Q06

15.5%

2Q05 1Q06 2Q06

4,848 5,628 5,864

1,4241,676 1,7296,272

7,5937,304

21.1%


Technical ReservesNet IncomeR$ Millions

Combined Ratio Loss Ratio

Private Pension Plans

Insurance

47.3%

55.6%

53.3%94.0%93.7%

100.0%

2Q05 1Q06 2Q06


Stock Dividend (Bonificação de Ações)

To increase the liquidity of Unibanco’s and Unibanco Holdings’ shares in the Brazilian stock market by means of having a quotation value accessible to small investors.

Current(closing on August 10th )

Before(closing on July 17th )

After(opening on July 18th)

Unit Price (R$) 26.30 13.15

Outstanding Shares (millions) 1,398.9 2,797.8

Market Cap (R$ Billions) 18.4 18.4

GDS Price (US$) 59.91 59.91

Ratio (Units per GDS) 5 : 1 10 : 1

15.50

2,797.8

21.7

71.97

10 : 1


Summary: Loan Portfolio

R$ Millions

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

35,154

36,872

39,87539,684

41,929

+19.3%


Summary: Core Deposits

R$ Millions

11,531

11,657

12,45112,810

13,793

+19.6%

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


Summary: Financial Margin

2Q05 3Q05 4Q05 1Q06 2Q06

Before ProvisionsAfter Provisions

10.7%

10.9%

10.5%

8.1% 7.9% 7.6%

10.8%10.8%

8.2%7.6%

+20 b.p.

-50 b.p.


Summary: Provisions / Financial Margin

2Q05 3Q05 4Q05 1Q06 2Q06

21.7%23.3%

29.0%27.2% 27.9%

+620 b.p.


Summary: Efficiency Ratio

52.8%

51.3%

49.2%

48.1%47.5%

-530 b.p.

2Q05 3Q05 4Q05 1Q06 2Q06


Summary: Net Income

2Q05 3Q05 4Q05 1Q06 2Q06

R$ Millions

+21.0%

453

475

509

520

548


Summary: Annualized ROAE

2Q05 3Q05 4Q05 1Q06 2Q06

23.0%

23.3%

24.2% 24.0%

24.7%

+170 b.p.


Save the date

APIMEC Meetings 2006

Rio de Janeiro

Sofitel Hotel

August 17th

06:00 PM

Brasília

Blue Tree Park Hotel

October 17th

06:00 PM

Belo Horizonte

Ouro Minas Palace Hotel

September 21th

06:00 PM

São Paulo

Unique Hotel

November 23rd

03:30 PM


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.

Investor Relations | 1 Unibanco and Unibanco Holdings, S.A.

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