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