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 80th year, Unibanco underwent a significant organizational restructuring ROAE 26.5% 2007 10 years of Unibanco’s ADR Program on the NYSE ROAE 16.1% ROAE 14.6% 2 1997 First Brazilian bank to have shares traded on the NYSE STRENGTHS WEAKNESSES Distinguished brand, associated with innovation in financial products and services Narrow portfolio of retail businesses Strong and seasoned management team Small distribution network Leadership in Wholesale Solid franchise Strong credit culture Size of the retail client base Low operational efficiency Little integration across businesses Core deposit funding 3 BANKING ENVIRONMENT 1997-2003 Banking Spreads (%): 1997 - 2003 120 100 80.39 80 60 50.85 41.50 40 26.44 20 0 Individuals Corporate 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 ORGANIZATIONAL STRUCTURE RETAIL BANKING • Individuals from all income brackets, except private • Small Companies with annual sales up to R$25 million WHOLESALE BANKING • Transaction oriented • Industry coverage • Own back-office • Large and midsize companies INSURANCE AND PENSION • Product oriented • Segmented distribution and sales • Strong product expertise and distribution network 1997-2003 WEALTH MANAGEMENT • Unibanco Asset Management; Fund of Funds • Private Banking: investment advice and wealth planning Universal Bank with co-CEOs 6 ACQUISITIONS AND STRATEGIC ALLIANCES IN THE PERIOD Active participation in the consolidation process of the Brazilian Financial System 1997-2003 First mover in the development of strategic partnerships and joint ventures with retailers 7 RETAIL DISTRIBUTION NETWORK 1997 1997-2003 2003 24% of GDP Total branches: 83 27% of GDP Total branches: 195 73% of GDP Total branches: 1,084 76% of GDP Total branches: 962 Unibanco’ Scale Total branches Fininvest + Pontocred + Luizacred Stores Phone transactions Internet transactions Total transactions 57 80 million 33 million 433 million 1997 1,045 2003 1,279 620 D 22% 988% (Fininvest only) 188 million 102 million 764 million 135% 209% 76% 8 CLIENT BASE AND BRANCH NETWORK EVOLUTION 1997-2003 Clients In Million 14.1 13.1 13.2 2001 2002 2003 1,314 1,279 7.7 0.5 1990 0.6 0.7 0.8 0.8 1991 1992 1993 1994 2.1 2.4 3.0 3.5 3.7 1995 1996 1997 1998 1999 2000 Branches and Corporate-Site Branches Corporate-Site Branches Branches 627 592 637 197 212 1,559 1,436 678 683 711 226 227 240 395 425 452 456 1990 1991 1992 1993 809 471 1994 1995 1,080 1,082 1,045 390 375 358 692 670 659 644 666 1996 1997 1998 1999 600 1,017 1,383 497 442 406 414 896 959 886 809 872 873 796 2000 2001 2002 2003 9 CONSUMER FINANCE FRANCHISE DEVELOPMENT Consumer Finance Leadership 1997-2003 Consumer Finance Loan Portfolio R$ 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 1997-2003 CREDIT CARD - MARKET LEADERSHIP Loan Portfolio (Credicard + Unicard) R$ Million +54.9% 2,326 1,502 Dec-97 Number of Cards (In million) Dec-03 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 1997-2003 AUTO FINANCING 1998: Unibanco acquired 51% of Dibens 1998 Loan Portfolio R$ Million +147.3% 2,807 1,135 Leasing Dec-98 Dec-03 12 1997-2003 WHOLESALE Loan Portfolio Positioning Benefits +71.6% R$ Billion 13.9 8.1 “The Bank for Companies Interested in Brazil” THE STRENGTH OF A MAJOR COMMERCIAL BANK THE AGILITY OF AN INVESTMENT BANK COMMITTED TO BRAZIL Dec-97 • Financial strength • L-T relationship • Credit Capacity • Capital markets perspective • Creativity • Specialized teams • Unique Brazil knowhow/capabilities • Permanence Dec-04 Product Offering • Working Capital Financing • Trade Financing “To be the Wholesale Bank of reference in Brazil for customers and employees” 13 • M&A Advisory • Cash Management • Project Financing • Asset Management • Syndicated Lending • Insurance • Debt and Equity Capital Markets • Corporate Site Branches • Brokerage Services 13 1997-2003 JOINT VENTURE WITH AIG In 1997, Unibanco established a joint venture with AIG, the largest insurance company in the world 107.0 104.2 106.5 108.0 106.2 106.0 104.5 104.7 102.1 102.0 98.9 101.0 99.8 97.9 1.4% 1997 2.9% 1998 3.6% 1999 Market Combined Ratio 4.9% 2000 5.7% 6.5% 2001 2002 Unibanco´s Combined Ratio 7.7% 2003 Unibanco’s Market Share Source: SUSEP / ANS 14 MAIN FINANCIAL INDICATORS Total Assets 1997-2003 Loan Portfolio R$ Billion 75.4 51.5 28.1 31.7 1997 22.1 36.0 12.2 1998 1999 2000 2001 2002 1997 2003 R$ Billion 0.7 0.5 69.6 55.6 Net Income 0.4 R$ Billion 1.0 1.0 2001 2002 1998 2003 26.8 27.7 15.8 1999 2000 2001 2002 Stockholders’ Equity 1.1 0.6 1998 1999 2000 1997 14.0 25.8 5.5 2.6 2.9 1997 1998 6.1 2003 R$ Billion 6.6 7.2 4.0 1999 2000 2001 2002 2003 15 MAIN INDICATORS 1997-2003 Consistent Profitability and Solid Financial Position CAGR (%) Net Income (R$ Million) Earnings per share 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 CAGR(%) 85 127 147 155 285 431 454 591 739 972 1,010 1,052 16.0 0.07 0.11 0.12 0.12 0.15 0.22 0.23 0.28 0.30 0.35 0.36 0.38 9.5 1.1 1.2 1.2 0.9 1.2 1.6 1.5 1.7 1.8 1.8 1.5 1.5 -10 bp 10.4 14.3 14.1 11.7 13.8 18.0 16.4 18.5 17.5 16.8 16.0 15.3 -270 bp 77.7 78.8 67.0 57.2 69.4 64.9 60.8 53.4 60.0 58.0 59.1 57.7 -720bp 10.1 9.9 7.8 6.9 10.9 9.7 9.3 8.0 6.9 7.4 6.5 6.3 -340 bp (R$) ROAA (%) ROAE (%) Efficiency ratio (%) Cost to Average Assets (%) 16 16 16 2004 2004 STRENGTHS Significant retail client base Leadership in credit card and consumer finance businesses Strong Wholesale franchise Profitable and growing Insurance & Pensions businesses WEAKNESSES ROE below potential and peers Low synergies across businesses Cross-selling opportunities Core deposit funding Small market-share in auto financing 18 BANKING ENVIRONMENT 2004-2007 Banking Spreads (%): 2004 - 2007 60 50.00 50 40 34.54 30 26.57 22.56 20 10 0 Individuals Corporate 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 2004-2007 JULY 2004: A NEW CHALLENGE 21 2004-2007 JULY 2004: A NEW CHALLENGE Promoting a new corporate culture 22 NEW ORGANIZATIONAL STRUCTURE 2004 - 2007 Board of Directors Pedro Malan Chairman Pedro Moreira Salles Vice-Chairman Board Members Armínio Fraga João Dionísio Pedro Bodin Francisco Pinto Israel Vainboim Joaquim F. Castro Neto Audit Committee Israel Vainboim Chairman Guilherme A. Ferreira Members Gabriel Jorge Ferreira Eduardo A. Guimarães Guy Almeida Andrade CEO Pedro Moreira Salles Retail Wholesale and Wealth Management Márcio Schettini Legal and Tax Claudia Politanski Insurance and Pensions HR and Marketing Demósthenes Madureira Planning, Control, Operations and IR Geraldo Travaglia José Rudge Treasury Daniel Gleizer Risk, Compliance and Operational Efficiency Marcos Lisboa 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 2004 - 2007 2 – 10 – 20 Mid-2004 Clear Financial Objectives R$2 billion net income R$10 billion stockholders’ equity 20% ROAE Better performance ratios Increased presence in consumer finance Strict expense control in 2006 ROAE goal achieved as of 4Q04 Improved cross-selling 25 RENEWED BRAND 2004-2007 26 RENEWED BRAND OLD Old 2004-2007 New Logo Branches Marketing Campaign 27 BRANCHES - NEW SERVICE MODEL 2004-2007 Improve Unibanco’s performance in: Servicing clients Branch working environment Financial results 28 JEITO UNIBANCO (THE UNIBANCO WAY) 2004-2007 29 GREATER FOCUS ON HIGHER MARGIN AND FASTER GROWING BUSINESSES SMES High Private Low Margin Consumer Finance Credit Cards Branch network Wholesale 2004-2007 UAM Autos Insurance & Pension Retail Wholesale & Wealth Management Insurance & Pension Low Growth High 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 Total branches Fininvest + Pontocred + Luizacred Stores Phone Internet Total transactions transactions transactions 2004 1,275 842 121 million 170 million 828 million 2007 1,239 1,345 204 million 404 million 1,068 million* D -3% 60% 69% 138% 29% * 2007 estimate 31 CLIENT BASE AND BRANCH NETWORK EVOLUTION 2004-2007 Clients 26.3 In Million 26.9 22.5 18.3 13.1 13.2 2001 2002 14.1 7.7 0.5 0.6 0.7 0.8 1990 1991 1992 1993 2.1 2.4 3.0 3.5 3.7 0.8 1994 1995 1996 1997 1998 1999 2000 2003 2004 2005 2006 Sep - 07 Branches and Corporate-Site Branches Corporate-Site Branches 1,559 1,436 Branches 627 678 683 711 226 227 240 592 637 197 212 395 425 452 456 471 1990 1991 1992 1993 1994 809 1995 1,080 1,082 1,045 390 375 358 692 670 659 644 666 1996 1997 1998 1999 600 1,017 1,383 497 1,314 442 1,279 1,275 1,263 406 380 349 1,256 1,239 316 292 940 947 414 896 959 886 809 872 873 796 895 914 2000 2001 2002 2003 2004 2005 2006 Sep-07 32 2004-2007 2004-2007 PAYROLL LOANS Dealing with Structural Change in the Credit Market 100% Personal Loans 80% 37% 60% Payroll Loans 40% 63% 20% Payroll loans + Personal loans = 42% of Brazilian Financial System individuals portfolio 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% 29% 36.2% 1,536 28% 1,128 13% 43% 44% 44% Unibanco Market 901 Sep-05 Sep-06 Sep-07 Private Sector Public Sector INSS 33 2004-2007 CONSUMER FINANCE Approval Rate Fininvest Personal Loans 41% 30% 24% 10% Jun-05 Loan Portfolio R$ Million Consumer Finance Companies -5.1% +33.9% 3,068 Apr-06 Sep-06 Sep-07 Provision for Loan Losses R$ Million Consumer Finance Companies +6.9% 3,112 -33.6% +116.8% 2,910 -2.6% 232 154 150 4Q06 3Q07 2,292 107 Dec-04 Dec-05 Dec-06 Sep-07 4Q04 4Q05 34 NEW RETAIL PARTNERSHIPS Joint Ventures 2004-2007 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 36 2004-2007 CREDIT CARDS Synergy with SMEs business: • Accounts Receivable Financing • Merchants`Affiliation Loan Portfolio (R$ Million) ( Unicard + Hipercard) Billings Merchant Affiliation (R$ Million) ( Unicard + Hipercard) 5,680 433,593 17,812 10,539 2,794 117,054 Dec-04 Sep-07 2004 Dec-04 9M 07 Sep-07 2004 2005 2006 Sep-07 Visa + Mastercard 5.3 11.1 14.3 16.4 Hipercard 2.7 4.2 6.5 7.9 Private Label Cards 9.5 10.5 8.9 8.7 17.5 25.8 29.7 33.0 Number of Cards (in million) Total Cards 3636 Negócios 37 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 Teresina Natal João Pessoa Recife Maceió Aracajú Salvador Natal João Pessoa Recife Maceió Aracajú Teresina Salvador Goiânia Brasília Belo Horizonte Vitória Rio de Janeiro São Paulo Curitiba Florianópolis Porto Alegre 37 Negócios 2004-2007 38 2004-2007 AUTO FINANCING Market Share Evolution (financed units) Loan Portfolio Growth Cars R$ Million Heavy Vehicles 11.2% +130% 4,205 3,751 3,115 44% 69% 53% New vehicles 2.9% 4.0% Dec/04 Dec/05 Dec/06 Sep/07 56% 55% 47% 31% Sep-04 Sep-05 Sep-06 Sep-07 Dec/05 3Q07 Market Sep/07 3Q07 3Q06 = 100 352 143 Dec/06 (financed units) 3Q06 = 100 Used vehicles Dec/04 14.2% New Trucks & Buses New Cars (financed units) 45% 11.5% 9.1% 5.0% 7,175 13.8% 149 139 Market 39 2004-2007 CLIENT BASE EVOLUTION 26.9 JOINT-VENTURES With retailers 22.5 18.6 14.1 15.7 8.1 Consumer Finance In Million 6.0 6.8 Dec-03 Dec-05 8.3 Multiple Bank FINANCEIRA Sep-07 40 2004-2007 WHOLESALE Loan Portfolio +47.9% R$ Million Large Corporate 21,591 Companies with annual sales above R$ 150 million 14,597 • Regional Coverage • Relationship Oriented Dec-04 Revenue Evolution 2004 2007 Sep-07 2004 = 100 1,010 215 203 164 100 100 100 100 Derivatives Capital Markets Cash Management Total 41 2004-2007 INSURANCE AND PENSION PLANS 10-YEAR UNIBANCO AIG PARTNERSHIP RESULTS RANKING POSITION 1st Directors and Officers (D&O) 1st Transportation 1st Civil Liability 1st Aeronautical 1st Extended Warranty 1st Facultative Risks 1st Petroleum Risks 2nd Corporate Pension Plans 104.8 104.7 100.6 98.8 98.3 94.5 5,533 2004 Market Combined Ratio 103.2 7,268 2005 8,298 2006 Unibanco´s Combined Ratio 94.9 9,543 R$ Million 2007* Insurance + Pension Plans Total Reserves (*) September 2007 Source: SUSEP / ANS 42 2004-2007 LOAN PORTFOLIO MIX Change in Loan Portfolio Mix (R$ Billion) 25.5% Focus on higher margin businesses Wholesale 13.5% 23.4% 31.8 39.9 45.3 55.9 46% 42% 43% 39% 54% 58% 57% 61% 2004 2005 2006 Sep-07 Retail 43 2004-2007 CREDIT EVOLUTION Unibanco x Brazilian Financial System Dec-04 = 100 176 171 147 137 125 116 100 Dec-04 136 143 122 113 Sep-05 Dec-05 Sep-06 Dec-06 Sep-07 Brazilian Financial System 44 2004-2007 DISCIPLINE IN COST CONTROL Main Actions - R$ Million 2004 • Consolidation of supporting units 61.2% 51.4% • Outsourcing of non-core activities • Restructuring of collection department 6.5% 6.3% 49.2% 47.3% 5.9% 4.4% • Logistics improvement Efficiency Project 2.6% From mid-2006 on • Establishment of an operational 2,988 2,913 2,136 2,575 efficiency area reporting to CEO • Improvement of management practices 1,308 1,323 1,434 3Q04 3Q05 3Q06 -1.4% 1,414 • Cross control and systematic monitoring throughout the organization • Executive Committee monthly review Cost to Assets Efficiency Ratio Revenues 3Q07 Expenses 45 2004-2007 FUNDING IMPROVEMENT Deposits 2004 Weight % 2007 Weight % Core deposits 10,811 32.2 17,974 37.7 Time deposits + Debentures 22,720 67.8 29,757 62.3 Total Deposits + Debentures 33,531 100.0 47,731 100.0 SuperPoupe R$ Million R$ Million (core deposits CDs) 5,452 4,982 3,044 1,625 2004 2005 2006 Sep-07 46 MAIN FINANCIAL INDICATORS 2004 - 2007 Total Assets Loan Portfolio R$ Billion R$ Billion 55.9 133.9 79.4 2004 91.8 2005 103.8 2006 31.8 Sep-07 Net Income R$ Billion 1.8 2004 2.2 2005 2006 R$ Billion Sep-07 2006 11.6 1.9 8.1 2005 39.9 Stockholders’ Equity 1.3 2004 45.3 9M07 2004 9.3 9.9 2005 2006 Sep-07 47 MAIN INDICATORS 2004-2007 Consistent Profitability and Solid Financial Position 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 9M07 CAGR %*%(1) Net Income 85 1,010 1,052 1,283 1,838 2,210 1,885 27.6 127 147 155 285 431 454 591 739 972 0.11 0.12 0.12 0.15 0.22 0.23 0.28 0.30 0.35 0.36 0.38 0.46 0.66 0.79 0.67 28.1 1.1 1.2 1.2 0.9 1.2 1.6 1.5 1.7 1.8 1.8 1.5 1.5 1.7 2.1 2.3 2.1 40 bp 10.4 14.3 14.1 11.7 13.8 18.0 16.4 18.5 17.5 16.8 16.0 15.3 16.8 21.1 22.4 24.5 770 bp Efficiency ratio 77.7 78.8 67.0 57.2 69.4 64.9 60.8 53.4 60.0 58.0 59.1 57.7 60.9 51.5 49.3 47.8 -1,300 bp 9.9 7.8 6.9 10.9 9.7 9.3 8.0 6.9 7.4 6.5 6.3 6.8 5.9 5.8 4.8 -200 bp (R$ Million) Earnings per share 0.07 (R$) ROAA (%) ROAE (%) (%) Cost to Average Assets 10.1 (%) (1) 9M07 x 9M04 (recurring results) 48 48 2007 10 YEARS ANALYSTS’ ASSESSMENT 2007 “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 BRAND VALUE 2007 Unibanco is one of the most valuable brands in Brazil, according to Interbrand, a leading brand consultancy R$4.3 billion Ranking 2006 2007 9th 5th 51 1997-2007 ADTV EVOLUTION US$ Million 145.2 UBB versus Average of Top 50 ADRs CAGR: 10% CAGR: 29% 65.4 43.5 37.2 27.1 28.7 26.8 22.3 14.0 11.2 1997 15.8 15.1 16.1 7.3 1998 6.3 1999 7.1 2000 6.3 2001 6.6 2002 22.5 19.0 8.4 2003 12.5 2004 2005 2006 Top 50 ADRs 2007 UBB 52 52 1997-2007 ADTV EVOLUTION R$ Million Average Daily Trading Volume (Bovespa and NYSE) 466 +37% Units (UBBR11) 104 GDSs (UBB) +22% 339 362 85 215 175 43 254 +42% 31 84 16 28 19 3 65 13 1 13 1 12 12 15 25 1997 1999 2001 2003 1 2005 172 144 2006 1Q07 2Q07 3Q07 53 IMPROVEMENT IN ABSOLUTE TERMS 2007 Annualized Return on Average Equity (%) 25.8 25.1 24.8 24.7 23.0 23.3 24.2 24.0 16.1 17.3 17.8 26.7 26.5 20.1 21.0 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 54 2007 IMPROVEMENT IN RELATIVE TERMS 1,810 1,750 1,830 ROAE Gap 1,750 1,520 Basis points X 1,490 1,470 1,020 1,280 1,070 1,050 850 960 X 670 740 690 470 320 220 (120) 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 55 1997-2007 STOCK PERFORMANCE 1997 Jan-05 Sep-05 Dec-07 CAGR (%) Units Unibanco R$2.29 R$7.20 R$10.99 R$27.90 28.4 GDS Unibanco US$22.37 US$28.15 US$49.24 US$157.08 21.5 10,745 24,350 31,583 65,790 19.9 7,258 10,498 10,569 13,620 6.5 Ibovespa Dow Jones UBBR11 1,218 Prices adjusted by dividends UBB 702 Price Evolution Ibovespa 612 May-97 = 100 TOP 50 ADRs 365 Dow Jones 188 100 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 56 2007 STRENGTHS CHALLENGES Solid position in all business segments Expansion of branch network Synergies and cross-selling across businesses Improvement in funding mix Cost management Continuous and consistent increase in profitability levels Development of mortgage business Repositioning of the unsecured lending business 57 2007 VALUE TO SHAREHOLDERS R$39.0 billion 06-Dec 28.4 20.7 0.79 12.3 10.0 7.4 3.5 6.9 7.1 0.23 1997 1998 0.66 5.7 2.1 0.22 0.94 0.46 0.28 0.30 1999 2000 0.35 0.36 0.38 2001 2002 2003 Earnings per share (R$) 2004 2005 2006 9M07 Market Cap (R$ billion) 58 59 UNIBANCO ON THE NYSE 2007 First Brazilian bank listed Top 10 ADR in ADTV Level III ADR Financial Statement in US GAAP since 1997 59