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14.6%

10 YEARS ON THE NYSE. 1997 Unibanco listed its ADRs on the NYSE, and became the first Brazilian bank to have its shares traded at the NY Stock Exchange. 2004 In its 80 th year, Unibanco underwent a significant organizational restructuring. ROAE. 26.5%.

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14.6%

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  1. 10 YEARS ON THE NYSE 1997Unibanco listed its ADRs on the NYSE, and became the first Brazilian bank to have its shares traded at the NY Stock Exchange 2004In its 80th year, Unibanco underwent a significant organizational restructuring ROAE 26.5% 200710 years of Unibanco’s ADR Program on the NYSE ROAE 16.1% ROAE 14.6% 2

  2. 1997 First Brazilian bank to have shares traded on the NYSE STRENGTHS WEAKNESSES Distinguished brand, associated with innovation in financial products and services Strong and seasoned management team Leadership in Wholesale Solid franchise Strong credit culture Narrow portfolio of retail businesses Size of the retail client base Small distribution network Low operational efficiency Little integration across businesses Core deposit funding 3

  3. 120 100 80 60 40 20 0 sep/97 sep/99 sep/98 sep/00 sep/01 sep/02 sep/03 dec/03 jan/97 jan/98 jan/99 jan/00 jan/01 jan/02 jan/03 may/99 may/01 may/02 may/03 may/97 may/98 may/00 BANKING ENVIRONMENT 1997-2003 Banking Spreads (%): 1997 - 2003 80.39 50.85 41.50 26.44 Individuals Corporate 4

  4. 1997 - 2003 ROAE 17.5% 14.6% ROAE Main Initiatives in the Period: • Adoption of a co-CEO structure • Growth of the Retail franchise, with increased client segmentation • Strategic acquisitions and active participation in the banking consolidation process • Development of the Consumer Finance franchise • Partnership with AIG in Insurance and Pension businesses 5

  5. ORGANIZATIONAL STRUCTURE 1997-2003 RETAIL BANKING WHOLESALE BANKING INSURANCE AND PENSION WEALTH MANAGEMENT • Individuals from all income brackets, except private • Small Companies with annual sales up to R$25 million • Unibanco Asset Management; Fund of Funds • Private Banking: investment advice and wealth planning • Product oriented • Segmented distribution and sales • Strong product expertise and distribution network • Transaction oriented • Industry coverage • Own back-office • Large and mid-size companies Universal Bank with co-CEOs 6

  6. 1997-2003 ACQUISITIONS AND STRATEGIC ALLIANCES IN THE PERIOD Active participation in the consolidation process of the Brazilian Financial System First mover in the development of strategic partnerships and joint ventures with retailers 7

  7. Unibanco’ Scale Fininvest + Pontocred + Luizacred Stores Phone transactions Internet transactions Total transactions Total branches 57 (Fininvest only) 1997 1,045 80 million 33 million 433 million 2003 1,279 620 188 million 102 million 764 million D 22% 988% 135% 209% 76% 1997-2003 RETAIL DISTRIBUTION NETWORK 1997 2003 24% of GDP Total branches: 83 27% of GDP Total branches: 195 73% of GDP Total branches: 1,084 76% of GDP Total branches: 962 8

  8. CLIENT BASE AND BRANCH NETWORK EVOLUTION 1997-2003 Clients 14.1 13.2 13.1 In Million 7.7 3.7 3.5 3.0 2.1 2.4 0.8 0.8 0.6 0.7 0.5 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Branches and Corporate-Site Branches 1,559 1,383 1,436 Corporate-Site Branches 1,314 1,279 1,080 600 1,045 Branches 1,082 627 406 497 1,017 442 711 390 375 678 683 414 358 637 592 240 226 227 212 886 896 197 959 873 809 809 796 872 659 692 644 666 670 471 456 452 425 395 1995 1990 1991 1992 1993 1994 1996 1997 1998 1999 2000 2001 2002 2003 9

  9. CONSUMER FINANCE FRANCHISE DEVELOPMENT 1997-2003 Consumer Finance Leadership Consumer Finance Loan Portfolio Alliances with a great number of retailers nationwide R$ Million +136.2% Alliances 1,672 Joint Ventures 708 100% Unibanco Dec-97 Dec-03 • Fininvest: agressive expansion plan • Leveraging alliances and joint ventures • Cross selling focus: credit cards, banking accounts, annuities, insurance and extended warranty 10

  10. 1997-2003 CREDIT CARD - MARKET LEADERSHIP Loan Portfolio (Credicard + Unicard) R$ Million +54.9% 2,326 1,502 Dec-97 Dec-03 Number of Cards (In million) Dec-97 Dec-01 Dec-03 Visa + Mastercard 7.8 11.5 11.4 Private Label Cards 2.1 1.7 6.0 Total Cards 9.9 13.2 17.4 11

  11. 1997-2003 AUTO FINANCING 1998: Unibanco acquired 51% of Dibens 1998 Loan Portfolio R$ Million +147.3% 2,807 1,135 Dec-98 Dec-03 12

  12. 1997-2003 WHOLESALE Loan Portfolio Positioning Benefits “The Bank for Companies Interested in Brazil” THE STRENGTH OF A MAJOR COMMERCIAL BANK • Financial strength • L-T relationship • Credit Capacity +71.6% R$ Billion 13.9 “To be the Wholesale Bank of reference in Brazil for customers and employees” THE AGILITY OF AN INVESTMENT BANK • Capital markets perspective • Creativity • Specialized teams 8.1 COMMITTED TO BRAZIL • Unique Brazil know-how/capabilities • Permanence Dec-97 Dec-04 Product Offering 13 • Working Capital Financing • Trade Financing • Project Financing • Syndicated Lending • Debt and Equity Capital Markets • Brokerage Services • M&A Advisory • Cash Management • Asset Management • Insurance • Corporate Site Branches 13

  13. 1997-2003 JOINT VENTURE WITH AIG In 1997, Unibanco established a joint venture with AIG, the largest insurance company in the world 108.0 107.0 106.2 104.5 104.7 106.5 104.2 106.0 102.1 102.0 99.8 98.9 101.0 97.9 7.7% 6.5% 5.7% 4.9% 3.6% 2.9% 1.4% 1997 1998 1999 2000 2001 2002 2003 Market Combined Ratio Unibanco´s Combined Ratio Unibanco’s Market Share Source: SUSEP / ANS 14

  14. MAIN FINANCIAL INDICATORS 1997-2003 Total Assets Loan Portfolio R$ Billion R$ Billion 75.4 27.7 69.6 26.8 25.8 55.6 22.1 51.5 15.8 36.0 14.0 31.7 28.1 12.2 2003 1997 2000 2001 1999 2002 1998 1997 1998 1999 2000 2001 2002 2003 Net Income Stockholders’ Equity R$ Billion R$ Billion 7.2 6.6 1.1 1.0 6.1 1.0 5.5 0.7 4.0 0.6 2.9 0.5 2.6 0.4 1997 1998 1999 2000 2001 2002 2003 1997 1998 1999 2000 2001 2002 2003 15

  15. CAGR(%) 1997 1998 1999 2000 2001 2002 2003 1992 1993 1994 1995 1996 454 Net Income(R$ Million) 85 127 147 155 285 431 591 1,052 739 972 1,010 16.0 Earnings per share(R$) 0.07 0.11 0.12 0.12 0.15 0.22 0.28 0.30 0.35 0.36 0.38 9.5 0.23 ROAA(%) 1.1 1.2 1.2 0.9 1.2 1.6 1.8 1.8 1.5 -10 bp 1.5 1.7 1.5 ROAE(%) 10.4 14.3 14.1 11.7 13.8 18.0 -270 bp 16.4 16.0 15.3 18.5 17.5 16.8 Efficiency ratio(%) 77.7 78.8 67.0 57.2 69.4 53.4 57.7 -720bp 64.9 60.8 60.0 58.0 59.1 Cost to Average Assets (%) 7.8 6.9 10.9 10.1 9.9 16 7.4 -340 bp 9.3 8.0 6.9 6.5 6.3 9.7 MAIN INDICATORS 1997-2003 Consistent Profitability and Solid Financial Position CAGR (%) 16 16

  16. 2004

  17. 2004 STRENGTHS WEAKNESSES ROE below potential and peers Low synergies across businesses Cross-selling opportunities Core deposit funding Small market-share in auto financing Significant retail client base Leadership in credit card and consumer finance businesses Strong Wholesale franchise Profitable and growing Insurance & Pensions businesses 18

  18. 60 50 40 30 20 10 0 sep/04 sep/05 sep/06 sep/07 oct/07 jan/05 jan/06 jan/07 jan/04 may/04 may/05 may/06 may/07 BANKING ENVIRONMENT 2004-2007 Banking Spreads (%): 2004 - 2007 50.00 34.54 26.57 22.56 Individuals Corporate 19

  19. 2004 - 2007 ROAE 26.5% New Service Model 16.1% ROAE Main Initiatives in the Period: • New organizational structure • Renewed focus on profitability, quality and HR management • New Brand • New Service Model at the branch network • Change in the loan portfolio mix, focusing on high margin businesses • Effective cost management • Renewed focus on core deposits • Business segmentation improvements • Review of business processes and back-office operations 20 20

  20. 2004-2007 JULY 2004: A NEW CHALLENGE 21

  21. 2004-2007 JULY 2004: A NEW CHALLENGE Promoting a new corporate culture 22

  22. NEW ORGANIZATIONAL STRUCTURE 2004 - 2007 Board of Directors Board Members Pedro Malan Chairman Pedro Moreira Salles Vice-Chairman Armínio Fraga João Dionísio Audit Committee Pedro Bodin Francisco Pinto Israel Vainboim Joaquim F. Castro Neto Israel Vainboim Chairman Guilherme A. Ferreira Members Gabriel Jorge Ferreira Eduardo A. Guimarães Guy Almeida Andrade CEO PedroMoreiraSalles Insurance and Pensions HR and Marketing Wholesale and Wealth Management Retail Treasury Márcio Schettini Demósthenes Madureira Daniel Gleizer José Rudge Risk, Compliance and Operational Efficiency Planning, Control, Operations and IR Legal and Tax Claudia Politanski Geraldo Travaglia MarcosLisboa 23

  23. ORGANIZATIONAL RESTRUCTURING 2004 - 2007 • Universal bank strategy reinforced with: • A single CEO • New compensation policy • Consolidation of back office and supporting units • Leaner structures and processes • Strengthened cooperation between business and supporting units • Cross-selling goals linked to variable compensation • Bottom-line driven • Outcomes: • Faster decision-making • Senior management team closer to day-to-day activities • Redesign of the Wholesale area, focusing on client relationship • Exited non-profitable businesses • Important divestments • Cost control discipline • New marketing policy, new advertising agency and renewed brand 24

  24. 2004 - 2007 2 – 10 – 20 Mid-2004 R$2 billion net income R$10 billion stockholders’ equity 20% ROAE Clear Financial Objectives in 2006 Better performance ratios Increased presence in consumer finance Strict expense control Improved cross-selling ROAE goal achieved as of 4Q04 25

  25. 2004-2007 RENEWED BRAND 26

  26. 2004-2007 RENEWED BRAND OLD Old New Logo Branches Marketing Campaign 27

  27. 2004-2007 BRANCHES - NEW SERVICE MODEL Improve Unibanco’s performance in: Servicing clients Branch working environment Financial results 28

  28. JEITO UNIBANCO (THE UNIBANCO WAY) 2004-2007 THE 10 TENETS OF THE UNIBANCO WAY 29

  29. 2004-2007 GREATER FOCUS ON HIGHER MARGIN AND FASTER GROWING BUSINESSES Consumer Finance Branch network Credit Cards High Autos SMES Private Margin Insurance & Pension Wholesale UAM Low Retail Wholesale & Wealth Management Insurance & Pension Low Growth High 30

  30. 2004-2007 RETAIL DISTRIBUTION NETWORK 2004 2007 27% of the GDP Total branches: 190 27% of the GDP Total branches: 194 73% of the GDP Total branches: 1,081 73% of the GDP Total branches: 1,049 Unibanco’ Scale Fininvest + Pontocred + Luizacred Stores Phone transactions Internet transactions Total transactions Total branches 2004 1,275 842 121 million 170 million 828 million 2007 1,239 204 million 404 million 1,068 million* 1,345 D -3% 60% 69% 138% 29% * 2007 estimate 31

  31. CLIENT BASE AND BRANCH NETWORK EVOLUTION 2004-2007 Clients 26.9 26.3 In Million 22.5 18.3 14.1 13.2 13.1 7.7 3.7 3.5 3.0 2.1 2.4 0.8 0.8 0.6 0.7 0.5 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Sep - 07 Branches and Corporate-Site Branches 1,559 Corporate-Site Branches 1,383 1,436 1,314 1,279 Branches 1,275 1,263 1,256 1,239 1,080 600 1,045 1,082 627 406 349 497 1,017 380 316 292 442 711 390 375 678 683 414 358 637 592 240 226 227 212 886 896 197 959 895 914 940 947 873 809 809 796 872 659 692 644 666 670 471 456 452 425 395 1995 1990 1991 1992 1993 1994 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Sep-07 32

  32. 13% 29% 43% 28% 44% 44% 2004-2007 2004-2007 PAYROLL LOANS Dealing with Structural Change in the Credit Market Payroll loans + Personal loans = 42% of Brazilian Financial System individuals portfolio 100% Personal Loans 37% 80% 60% Payroll Loans 40% 63% 20% 0% Dec/01 Sep/02 Jul/03 May/04 Mar/05 Jan/06 Dec/06 Feb/07 Apr/07 Jun/07 Aug/07 Oct/07 Payroll - Own Portfolio Mix Payroll Loans (Own Portfolio) R$ Million 70.5% 1,536 36.2% 1,128 901 Unibanco Market Private Sector Public Sector Sep-05 Sep-06 Sep-07 INSS 33

  33. 2004-2007 CONSUMER FINANCE Approval Rate Fininvest Personal Loans 41% 30% 24% 10% Jun-05 Apr-06 Sep-06 Sep-07 Loan Portfolio Consumer Finance Companies Provision for Loan Losses Consumer Finance Companies R$ Million R$ Million +6.9% -5.1% 3,112 -33.6% +33.9% +116.8% 3,068 -2.6% 2,910 232 154 150 2,292 107 3Q07 4Q06 Dec-04 Dec-05 Dec-06 Sep-07 4Q04 4Q05 34

  34. 2004-2007 NEW RETAIL PARTNERSHIPS Joint Ventures Alliances Second largest gas station network in Brazil One of the leading benefits companies in Brazil One of the leaders in payroll loans Approximately 250 alliances with retailers, wholesalers, supermarket chains and construction material stores, among others 35

  35. 36 4.2 2004-2007 CREDIT CARDS Synergy with SMEs business: •Accounts Receivable Financing •Merchants`Affiliation Loan Portfolio Billings Merchant Affiliation (R$ Million) (R$ Million) ( Unicard + Hipercard ) ( Unicard + Hipercard ) 433,593 5,680 17,812 10,539 2,794 117,054 Dec-04 Sep - 07 Dec-04 Sep - 07 2004 9M 07 Number of Cards (in million) 2004 2005 2006 Sep-07 Visa + Mastercard 5.3 11.1 14.3 16.4 Hipercard 2.7 6.5 7.9 Private Label Cards 9.5 10.5 8.9 8.7 Total Cards 17.5 25.8 29.7 33.0 36 36

  36. 37 Negócios 2004-2007 HIPERCARD 2004: 9 Capitals in the Northeast region 2007: 18 Capitals in the Northeast, South and Southeast regions São Luiz São Luiz Fortaleza Fortaleza Natal Natal João Pessoa João Pessoa Teresina Teresina Recife Recife Maceió Maceió Aracajú Aracajú Salvador Salvador Goiânia Brasília Belo Horizonte Vitória Rio de Janeiro São Paulo Curitiba Florianópolis Porto Alegre 37 37

  37. Negócios 2004-2007 38

  38. Cars 11.2% 5.0% 4.0% 2.9% Dec/04 Dec/04 Dec/05 Dec/05 Dec/06 Dec/06 Sep/07 Sep/07 2004-2007 AUTO FINANCING Market Share Evolution(financed units) Loan Portfolio Growth Heavy Vehicles R$ Million 14.2% 13.8% +130% 11.5% 9.1% 7,175 4,205 3,751 New vehicles 69% 3,115 New Cars (financed units) New Trucks & Buses (financed units) 53% 45% 44% 3Q06 = 100 3Q06 = 100 3Q07 3Q07 352 149 Used vehicles 56% 55% 47% 31% 139 143 Market Market Sep-04 Sep-05 Sep-06 Sep-07 39

  39. 2004-2007 CLIENT BASE EVOLUTION 26.9 In Million JOINT-VENTURES With retailers 22.5 Consumer Finance 18.6 14.1 15.7 8.1 8.3 Multiple Bank 6.0 6.8 Dec-03 Dec-05 Sep-07 40

  40. 2004-2007 WHOLESALE Loan Portfolio • Regional Coverage • Relationship Oriented R$ Million +47.9% Large Corporate 21,591 Companies with annual sales above R$ 150 million 14,597 Dec-04 Sep-07 Revenue Evolution 2004 = 100 1,010 2004 215 2007 203 164 100 100 100 100 Derivatives Cash Management Capital Markets Total 41

  41. Directors and Officers (D&O) 1st Transportation 1st Civil Liability 1st Aeronautical 1st Extended Warranty 1st Facultative Risks 1st Petroleum Risks 1st Corporate Pension Plans 2nd 2004-2007 INSURANCE AND PENSION PLANS 10-YEAR UNIBANCO AIG PARTNERSHIP RESULTS RANKING POSITION 104.8 104.7 103.2 100.6 98.8 98.3 94.5 94.9 R$ Million 9,543 8,298 7,268 5,533 2004 2005 2006 2007* Market Combined Ratio Unibanco´s Combined Ratio Insurance + Pension Plans Total Reserves Source: SUSEP / ANS (*) September 2007 42

  42. 25.5% 13.5% 23.4% 2004-2007 LOAN PORTFOLIO MIX Change in Loan Portfolio Mix (R$ Billion) 31.8 39.9 45.3 55.9 Focus on higher margin businesses 46% 42% 43% 39% 54% 58% 57% 61% Wholesale Retail 2004 2005 2006 Sep-07 43

  43. 176 171 147 137 143 125 136 116 122 113 100 Dec-04 Sep-05 Dec-05 Sep-06 Dec-06 Sep-07 2004-2007 CREDIT EVOLUTION Unibanco x Brazilian Financial System Dec-04 = 100 BrazilianFinancialSystem 44

  44. 2004-2007 DISCIPLINE IN COST CONTROL R$ Million Main Actions - 2004 • Consolidation of supporting units • Outsourcing of non-core activities • Restructuring of collection department • Logistics improvement 61.2% 51.4% 49.2% 47.3% 6.5% 6.3% 5.9% 4.4% Efficiency Project From mid-2006 on 2.6% 2,988 2,913 • Establishment of an operational efficiency area reporting to CEO • Improvement of management practices • Cross control and systematic monitoring throughout the organization • Executive Committee monthly review 2,575 2,136 -1.4% 1,434 1,323 1,414 1,308 3Q04 3Q05 3Q06 3Q07 Cost to Assets Efficiency Ratio Revenues Expenses 45

  45. 2004-2007 FUNDING IMPROVEMENT 2004 Deposits 2007 R$ Million Weight % Weight % Core deposits 10,811 17,974 37.7 32.2 Time deposits + Debentures 22,720 29,757 62.3 67.8 Total Deposits + Debentures 47,731 33,531 100.0 100.0 SuperPoupe (core deposits CDs) R$ Million 5,452 4,982 3,044 1,625 2004 2005 2006 Sep-07 46

  46. MAIN FINANCIAL INDICATORS 2004 - 2007 Total Assets Loan Portfolio R$ Billion R$ Billion 55.9 133.9 45.3 39.9 103.8 91.8 31.8 79.4 2004 2005 2006 2004 2005 2006 Sep-07 Sep-07 Net Income Stockholders’ Equity R$ Billion R$ Billion 2.2 11.6 1.9 1.8 9.9 9.3 1.3 8.1 2004 2005 2006 9M07 2004 2005 2006 Sep-07 47 47

  47. 1992 1992 1993 1993 1994 1994 1995 1995 1996 1996 1997 1997 1998 1998 1999 1999 2000 2000 2001 2001 2002 2002 85 127 147 155 285 431 454 591 739 972 1,010 0.07 0.11 0.12 0.12 0.15 0.22 0.23 0.28 0.30 0.35 0.36 1.1 1.2 1.2 0.9 1.2 1.6 1.5 1.7 1.8 1.8 1.5 10.4 14.3 14.1 11.7 13.8 18.0 16.4 18.5 17.5 16.8 16.0 77.7 78.8 67.0 57.2 69.4 64.9 60.8 53.4 60.0 58.0 59.1 10.1 9.9 7.8 6.9 10.9 9.7 9.3 8.0 6.9 7.4 6.5 (1) 9M07 x 9M04 (recurring results) MAIN INDICATORS 2004-2007 Consistent Profitability and Solid Financial Position Consistent Profitability and Solid Financial Position 2003 2003 2004 2004 2005 2005 2006 2006 9M07 9M07 CAGR %(1) %* Net Income 1,283 1,838 2,210 1,885 27.6 1,052 (R$ Million) Earningsper share 0.38 0.67 28.1 0.46 0.66 0.79 (R$) ROAA 40 bp 1.7 2.1 2.3 2.1 1.5 (%) ROAE 16.8 21.1 22.4 24.5 15.3 770 bp (%) Efficiency ratio 60.9 51.5 49.3 47.8 57.7 -1,300 bp (%) Cost to Average Assets -200 bp 6.8 5.9 5.8 4.8 6.3 (%) 48 48

  48. 2007

  49. 2007 ANALYSTS’ ASSESSMENT “This is the best 3Q07 result so far among large cap banks. Unibanco is clearly going through a turnaround, with rapid growth in the loan portfolio, as well as improved quality and efficiency.” “Unibanco delivered yet another quarter with better operating trends and EPS growth vs. the peers.” “EPS grew a solid 18% y/y. (…)EPS before one-timers fell 22% y/y at Itaú, and grew only 11% y/y at Bradesco.” “Unibanco posted the best core earnings growth among the private sector banks for a second consecutive quarter. As such, the bank reduced its profitability gap to Bradesco, its narrowest level in more than 4 years.” “Unibanco posted a higher ROAE than Itaú (23%) for the first time ever.” “(…) Unibanco was the only one that managed to keep its ROE flat (compared with the prior quarter), despite the challenging market conditions that all the banks’ treasury operations faced since late July 2007. ” “The bank repeated strong loan growth trends reported in the 2Q (…). UBB had strongest QoQ loan growth in consumer finance subsidiaries of past 2 years and SME lending stayed robust.” “UBB is our Top Pick among Brazilian banks. We believe strong growth in loans and fees validates a successful strategy for the bank. ” “Solid operating trends. Unlike at Bradesco and Itau, were lower treasury grains (or losses) led to sequential declines, UBB’s net interest income rose 1.5% QoQ.” “Unibanco remains one of our favorites.” “We consider the cost performance very positive. Fee revenues (…) increased 8.0% QoQ, a performance we also consider very positive.” “Unibanco is clearly enjoying positive momentum in 2007 and we strongly believe that it has solid fundamentals to close the ROAE gap between it and its peers. Despite its smaller size relative to its peers.” 50

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