Institutional Presentation June 2006

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Institutional PresentationJune 2006

Investor Relations

Unibanco and Unibanco Holdings, S.A.


Overview of Unibanco


Highlights

Publicly traded at Bovespa (Brazil) and NYSEPublicly traded at Bovespa (Brazil) and NYSE

Level III ADR on the NYSE and a member of IBOVESPA Level III ADR on the NYSE and a member of IBOVESPA

Very liquid stock: R$35.6 mln / US$16.2 mln ADTV* at Bovespa R$83.9 / US$38.6 mln ADTV* at NYSE

Very liquid stock: R$35.6 mln / US$16.2 mln ADTV* at Bovespa R$83.9 / US$38.6 mln ADTV* at NYSE

Financial statements in US GAAP since 1997Financial statements in US GAAP since 1997

Controlled by the Moreira Salles groupControlled by the Moreira Salles group

Level I Corporate Governance on the BovespaLevel I Corporate Governance on the Bovespa

*In 2Q06


• 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$41,1 billion

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

• “Top Gestão” asset management award - by S&P

A Snapshot of UnibancoAs of June 2006

• Joint venture with AIG

• Individuals and corporate: life, auto, assets, disability, pension funds and annuities

• Issuance of the first environmental insurance policy in Brazil

• Unibanco Insurance and Pension Plans placed 4TH in the ranking of Insurance and private pension plans published by Susep and ANS, and holds a 7.4% market share (as of May 2006)• A 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.

• Over 22 million clients

• Leading Consumer Finance franchise

• Highlight: Improvement of the credit card portfolio, which posted a 42.9% 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$18,491 mm, up 20.2% 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

1924 19401965/1970

1975/1983

19911995/1998

2000/2004

2005/2006

Timeline

CasaMoreiraSalles

BancoMoreiraSalles

BancoAgrícola

Mercantil

Banco Predial

União deBancos

Brasileiros

The 15financial

institutions ofthe GrupoUnião de

Bancos arerenamedUnibanco

Headquartersmoved toSão Paulo

InstitutoMoreiraSalles

Incorporationof BancoNacional

Unibancolaunches anew brand

New Service Model


Segmentation and Distribution

Client Focus Nationwide Distribution(As of June 2006)

More than 17 thousand points of sale

Branches

NorthNortheast

Southeast

South

Mid-West

1169

688

119

44

Brazil 931

Corp. Site Branches

841

30224

42

345

73383

1342,000

251

2,841

323

1,6911,064

6,0952,977

Points of Sale

12,150

6

4219

19631

Stores

294

Mid-West 42

Southeast 553South 118

Stores

Brazil 713

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

Large Companies

Upper Middle Market

Private Bank

UniClass Segment

Exclusive Segment

Corporate Individuals

Lower Middle Market

PAYROLL

Wholesale Retail PrivateBanking


Greater focus on higher margin and faster growing businesses

High

Low

Marg

in

Growth

Retail

Wholesale & Wealth Management

Insurance

Universal Bank


Consumer Finance


Credit Cards

Loan Portfolio (R$ Million)

42.9%

2,881

4,117

Jun-05 Jun-06


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

SMEs & Auto Financing

• Approximately 542,000 companies

• Leveraging synergies with the group

(Fininvest, Unicard, Hipercard)

• Wide range of banking services

• Significant contribution to core deposits’

growth

15.1%

4,143

4,768

Jun-05 Jun-06

• Operates nationwide through Unibanco

Financeira and in the accredited network of

auto dealers

• Better qualified, trained and remunerated

sales force

• Leader in financing heavy commercial

vehicles

22.9%

6,414

7,886

Jun-05 Jun-06


Fundamentals


Loan Portfolio Mix

Migration to fast growing segments with higher margins

Retail

Wholesale

Jun-06Jun-05

50%

Jun-04Dec-99

33%

67% 50%44%

56%

44%

56%

44%

56%


Improved Funding Structure

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

Core Deposits

1 Source: Brazilian Central Bank, preliminary data

19.6%

7.3%National Financial System 1

Core Deposits EvolutionJun 06

vs Jun 05

TDCs Core DepositsJun 06

vsMar 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%

National 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


R$ MillionsEfficiency Ratio Evolution

Cost Management

Expenses

Revenues Efficiency Ratio

1H05 1H06

47.8%

53.2%

48.1%49.2%51.3%52.8%

53.7%

59.5%61.2%63.4%

1,961 2,136 2,293 2.212 2,337 2,579 2,745 2,815

1,2421,308 1,365 1,187

1,2331,323 1,351 1,355

2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06

47.5%

2,891

1,373

2Q06

2,420

4,549

5,706

2,728


Financial Performance


Performance

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

+ 21%

+ 27%

2Q06/2Q052Q06

548

869

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


Performance – 2Q06 versus 1Q06

100

100

100

108

100 101

100 102

100

100104

100105

2Q06 1Q06

104 104

106

Fee Income

Core Deposits

Loan Portfolio

Financial Margin before Provision

Provision for Loan Losses

Adm. Expenses Operating Income

Net Income

1Q06 = 100


Performance – 2Q06 versus 2Q05

100

100

Fee Income

100

Core Deposits

120

100

119

100

100

154

100

121

2Q06 2Q05

2Q05 = 100

115

127

119

Loan Portfolio

Financial Margin before Provision

Provision for Loan Losses

Adm. Expenses Operating Income

Net Income

100111


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

Jun-05 Mar-06 Jun-06

R$ Millions

R$ Millions

Branch Network

Credit Cards

Auto Financing


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.


Loan Portfolio Quality

Loan Portfolio, by risk level

92.0% 93.1%


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


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


R$ millions

Fee Income

1Q06

2Q05

453

246

84

Total 783

491

282

90

863

2Q06

525

294

82

901

Fee Income/ Personnel and Administrative Expenses

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%


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


Stocks


Units and GDSs

Unibanco Units gained approximately 60% in the last 12 months

Unit continues to increase its weighting within the Ibovespa. Since its inclusion in the Ibovespa, in May 2005, its participation increased more than

65%

ADTV during 2Q06 was US$16.2 million on the Bovespa and US$38.6 million on the NYSE

Units (UBBR11) versus Ibovespa

GDSs (UBB) versus Dow Jones

Brazilian Stock Index

UBB 172

Dow Jones

109

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

UBBR11 158

Ibovespa 146

J un- 05 Sep- 05 Dec- 05 Mar- 06 J un- 06


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 15th )

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

16.00

2,797.8

22.3

74.49

10 : 1


Perspectives 2006


Perspectives

2005 2006 (E)

Real GDP Growth (%) 2.3% 3.5%

SELIC (End of Year) 18.00% 14.00%

IPCA (Inflation) 5.7% 4.8%

Trade Balance (US$) 44.8 bi 39.0 bi

Macroeconomic Perspectives

Exchange Rate R$/US$ (Enf of Year) 2.34 2.20


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

1st Half

2nd Half

164210

264

323 340 362

448

617

CAGR = 20%

R$ Million

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

Pay Out Ratio

1H06

354


Annex II

Ratings


Unibanco Ratings


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.

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Institutional Presentation June 2006

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