Post on 21-Dec-2015
Investor Relations | page 1
Investor Relations | page 2
Overview of Unibanco
Investor Relations | page 3
Highlights
Publicly traded at Bovespa (Brazil) and NYSE
Level III ADR on the NYSE and a member of IBOVESPA
Very liquid stock: R$21.0 mln / US$9.0 mln ADTV * at Bovespa US$43.8 mln ADTV * at NYSE
Financial statements in US GAAP since 1997
Controlled by the Moreira Salles group
Level I Corporate Governance on the Bovespa
* For the period Oct 1 - December 31; US$1 = R$2.34
Investor Relations | page 4
A Snapshot of Unibanco
Investor Relations | page 5
Organizational Structure
Prominent Board Members Independent Audit Committee
Retail
Márcio Schettini
Retail
Márcio Schettini
Wholesale and Wealth Management
Demosthenes Madureira
Wholesale and Wealth Management
Demosthenes Madureira
Insurance and Pensions
José Rudge
Insurance and Pensions
José Rudge
Audit Committee
Gabriel Jorge FerreiraChairman
Members
Audit Committee
Gabriel Jorge FerreiraChairman
Members
Legal, Audit, and Risk
Lucas Melo
Legal, Audit, and Risk
Lucas Melo
Planning, Control, Operations
and IR
Geraldo Travaglia
Planning, Control, Operations
and IR
Geraldo Travaglia
Corporate Communication
and HR
Marcos Caetano
Corporate Communication
and HR
Marcos Caetano
Treasury
Daniel Gleizer
Treasury
Daniel Gleizer
CEOPedro Moreira Salles
CEOPedro Moreira Salles
Board of Directors
Pedro MalanChairman
Pedro Moreira SallesVice-Chairman
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
Investor Relations | page 6
Over 80 years of history to become one of the leading full service banks in Brazil
Timeline
Investor Relations | page 7
A superior strategy and comprehensive distribution system...
Segmentation and Distribution
Client Focus Nationwide Distribution
…foster cross-selling opportunities across our expanding client base
(As of December 2005)
17,020 Points of Service
Branches
NorthNortheast
Southeast
South
Mid-West
1168
676
116
43
Brazil 914
Corp. Site Branches
842
31223
45
349
70380
1331,909
244
2,736
329
1,4851,043
6,2832,881
Points of Sale
12,021
4
3717
19130
Stores
279
Mid-West 41
Southeast 426South 254
Stores
Brazil 721
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
(Annual Sales < R$5 million)
Large Companies(Annual Sales > R$150 million)
Upper Middle Market
(R$40 million < Annual Sales < R$150 million)
Private Bank(Financial Investment >
R$3 million)
UniClass Segment (Monthly Income > R$4,000)
Exclusive Segment(R$350 < Monthly Income
< R$4,000)
Corporate Individuals
Lower Middle Market
(R$5 million < Annual Sales < R$40 million) PAYROLL
Wholesale Retail PrivateBanking
Investor Relations | page 8
Greater focus on higher margin and faster growing businesses
Retail
Wholesale & Wealth Management
Insurance
Universal Bank
Investor Relations | page 9
Consumer Finance
Leading Consumer Finance Platform Consumer Finance Loan Portfolio (R$ Million)
• Fininvest: aggressive growth plan
• Leveraging Alliances and Joint Ventures
• Cross Selling focus: Credit Cards, Banking Accounts, Capitalization, Insurance and Extended Warranty
Leading Consumer Finance Platform
Fully- Owned
Alliances
2,292
3,068
33.9%
Dec-04 Dec-05
Joint-Ventures
Investor Relations | page 10
Credit Cards
Loan Portfolio (R$ Million)
43.2%
2,794
4,001
Dec-04 Dec-05
• Acquirer, issuer and processor of credit cards• Accept by more than 120 thousand retailers
• Issues Visa and Mastercard cards• Alliances with retailers
Highlights
Investor Relations | page 11
SMEs (R$ Million) Auto Financing (R$ Million)
SMEs & Auto Financing
• Approximately 510,000 companies
• Leveraging synergies with the group
(Fininvest, Unicard, Hipercard)
• Wide range of banking services
• Significant contribution to core deposits’
growth
25.2%
3,682
4,609
Dec-04 Dec-05
• Fast growing segment
• Strong relationship with dealers through
Unibanco´s affiliates
• Better qualified, trained and remunerated
sales force
• Larger base of active dealers with 20% growth
in 2005
30.3%
5,629
7,335
Dec-04 Dec-05
Investor Relations | page 12
Fundamentals
Investor Relations | page 13
Dec-99
Wholesale
52%
48%
Dec-03 Dec-04
Shift in the Loan Portfolio Mix
Dec-05
50%
50% 46% 44%67%
33%
Retail54% 56%
Migration to faster growing segments with higher margins
Investor Relations | page 14
Improved Funding Structure
Deposits
Core deposits
Time deposits
2003
8,647
16,710
25,357
22,720
2004
10,811
33,531
2002
8,973
17,015
25,988Total deposits
12,451
23,048
35,499
2005
Growth in 2005
15.2%
8.5%National Financial System (1)
Core Deposits Evolution: Comparison
SuperPoupe
403
1,030
1,6251,962
2,3502,628
3,044
Jun-04 Sep-04 Dec-04 Mar-05 Jun-05 Sep-05 Dec-05
R$ millions
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
Investor Relations | page 15
Cost Management
4Q04 4Q05 2004 2005
2,293 8,310
5,058
60.9%
1,365
51.3%
5,092
9,878
51.5%
1,351
2,745
49.2%
18.9%
0.7%
%
R$ millions
3Q04 3Q052Q051Q05
59.5%63.4% 61.2% 59.5%
53.7% 52.8%
1Q04 2Q04
2,579
1,323
2,136
1,308
2,209
1,186
1,921
1,143
1,960
1,242
2,334
1,232
Efficiency Ratio Evolution
Expenses
Revenues
Efficiency Ratio
Investor Relations | page 16
Performance Evolution: 2005
6.7 6.8 7.0 7.27.4
7.77.9
8.18.4
1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05
R$
bill
ion
Annualized ROAE (%)Stockholders’ Equity
8.7
2Q05
Net Income R$1,838 million
Operating Income R$2,921 million
+43.3%
+49.0%
2005 / 2004
9.0
3Q05
21.0%
13.8%
17.5%17.1% 16.5% 16.1%
17.3%17.8%
20.1%
23.0%23.3%
9.3
4Q05
24.2%
Investor Relations | page 17
Financial Performance
Investor Relations | page 18
2005 Highlights
43.3% net income growth, 2005 versus 2004
7.2% net income growth, 4Q05 versus 3Q05
Improvement in efficiency ratio: 49.2% in 4Q05 from 59.5% in 4Q04
Individuals: 31.1%
Credit Cards: 43.2%
SMEs: 30.3%
Large Corporate: 19.0%
1.0% decrease in personnel and administrative expenses, 4Q05 versus 4Q04
Over the year, an increase of 0.7%
25.4% total annual growth
Results
Loan Portfolio Growth
Cost Management
Units
Units were included in the Ibovespa Index in May
Ibovespa’s best performing stock during 2H05, with a 72% gain
The largest increase in weighting within Ibovespa, 59%
33% free float increase
Investor Relations | page 19
Income Statement
R$ Million
Profit from Financial Intermediation 6,343
(+) Fees from Services Rendered 3,270
(-) Personnel & Administrative Expenses (5,092)
(+/-) Other Operating Income / Expenses (1,600)
(=) Operating Income 2,921
(+/-) Non-Operating Income 9
(+/-) Income Tax and Social Contribution (601)
(Effective Income Tax Rate) 23%
(-) Profit Sharing / Minority Interest (491)
Net Income 1,838
2005
5,087
3,241
(5,058)
(972)
1,961
37
(339)
19%
(376)
1,283
2004
Investor Relations | page 20
Performance: 2005 versus 2004
20052004
(*) Excludes Credicard/Orbitall
Investor Relations | page 21
Financial Indicators
Total Assets (R$ millions)
79,350
82,10982,731
88,423
Dec-04 Mar-05 Jun-05 Sep-05 Dec-05
91,831 Loan Portfolio (R$ millions)
31,79633,176
35,154
36,872
Dec-04 Mar-05 Jun-05 Sep-05 Dec-05
39,875
Financial Margin(before Provision for Loan Losses)
9.4%
9.7%
10.3%
10.8%
4Q04 1Q05 2Q05 3Q05 4Q05
10.8%
BIS Ratio (%)
18.2%17.3%
16.3% 16.1%16.4%
Dec-04 Mar-05 Jun-05 Sep-05 Dec-05
Investor Relations | page 22
Earnings per Share
Investor Relations | page 23
Loan Portfolio Growth
WholesaleRetail
Investor Relations | page 24
Loan Portfolio Growth – Individuals and Corporate
Corporate
Individuals (R$ millions)
(R$ millions)
Dec-04 Sep-05
7.9%
11,57014,061
Dec-05
15,170
31.1%
24,705
22.1%
20,226
8.3%
22,811
Dec-04 Sep-05 Dec-05
Main Highlights over 12 months:
Consumer Finance Companies 31.6%
26.6%
43.2%
Branch Network
Credit Cards
SMEs 30.3%
19.0%Large Corporate
25.2%Auto Financing
Investor Relations | page 25
Loan Portfolio, by risk level Allowance for Loan Losses/Loan Portfolio E-H
Loan Portfolio Quality
Investor Relations | page 26
Financial Margin
Financial MarginFinancial Margin after Provision Provision for Loan Losses/Financial Margin
2004 2005
7.1%
8.9%
20.4%
7.7%
10.0%
23.1%
7.2%
4Q04
9.4%
22.6%
7.6%
4Q05
10.8%
29.0%
Financial margin has consistently increased over the last quarters
Investor Relations | page 27
-
4Q05 4Q04
517 445
289 248
85 98
891 791
- 60
891 851
Fees from Services Rendered
R$ millions
2005 2004
Banking fees and other fees and commissions 1,880 1,662
Credit Cards 1,051 841
Assets under management 339 385
Subtotal 3,270 2,888
Credicard and Orbitall - 353
Total Fees from Services Rendered 3,270 3,241891 851
Investor Relations | page 28
Personnel and Administrative Expenses
Fees from Services Rendered/ Personnel Expenses
Fees from Services Rendered/ Personnel and Adm. Expenses
62%
66%64% 64%
156%
186%
161%
171%
4Q04 4Q05 2004 2005
R$ millions
4Q05 4Q04 2005 2004
Personnel Expenses 480 529 1,911 1,928
Other Administrative Expenses 871 787 3,181 2,834
Subtotal 1,351 1,316 5,092 4,762
Credicard and Orbitall - 49 - 296
Total 1,351 1,365 5,092 5,058
Investor Relations | page 29
Stocks
Investor Relations | page 30
Units and GDSs
Ibovespa’s best performers during 2H05, gaining 72%.
The largest increase in weighting within the Ibovespa in the past two four-month periodical rebalances (59%).
ADTV of Units on the Bovespa increased 340.9%, to R$19.4 million in 2005 from R$4.4 million in 2004.
ADTV during 4Q05 was R$21.0 million on the Bovespa and US$43.8 million on the NYSE.
Units (UBBR11) versus Ibovespa
GDSs (UBB) versus Dow Jones
Brazilian Stock Index
Weight (%)9/2/05 1/2/06
Ibovespa 1.264 1.564 IBrX-50 3.156 3.808 IBrX-100 2.799 3.329 IGC 4.933 5.096
ISE (*) n/a 9.569
(*) The index was initiated in Dec-05.
Index
Investor Relations | page 31
Perspectives 2006
Investor Relations | page 32
2006 Outlook
2005 2006 (E)
GDP Growth 2.5% (E) 3.5%
FX Rate R$/US$ (end-of-year) 2.34 2.25
SELIC (end-of-year) 18.00% 14.75%
IPCA (Consumer Price Index) 5.7% 4.5%
Trade Balance Surplus (US$) 44.8 bln 39.0 bln
Investor Relations | page 33
Annex I
2005 – A Retrospective
Investor Relations | page 34
Jan Global Public Offering of Units and GDSs
Jan Quarterly Interest on Capital Stock
Mar New Marketing Campaign
2005 Highlights
New logo New Service Model A more transparent and agile bank, working to surpass client
expectations
Quarterly payments of Interest on Capital Stock Related to the year 2005, Unibanco declared R$ 617 million
in Interest on Capital Stock/Dividends, up 38% from 2004
Selling Shareholders: Commerzbank and BNL Offering size: 6.6% of Unibanco’s capital Price: R$15.65 per Unit Financial volume: R$718.3 million Demand: 4.9x Book
Investor Relations | page 35
May Units Included in the Ibovespa
Jul Perpetual Bonds
0.984% weight at the time of inclusion in the Ibovespa index Since their inclusion in the Ibovespa, the Units achieved the largest
weighting gain in the index’s portfolio Units current weight in the Ibovespa is 1.564%
Issuance of Perpetual Bonds in July 2005: US$500 millions 8.70% annual coupon Call Option: subject to redemption, in whole, in Jul-2010 or in any
subsequent interest payment date occurring thereafter
2005 Highlights
Investor Relations | page 36
Sep Global Public Offering of Units and GDSs
Dec Unibanco Units were Ibovespa’s best performers during 2H05
Selling Shareholder: CGD (Caixa Geral de Depósitos) Offering size: 12.3% of Unibanco’s capital Price: R$20.49 per Unit and US$44.00 per GDS Financial Volume: R$1,765 million Demand: 3.0x Book Until February 15, the Units and GDSs appreciated by 70% and
87%, respectively
72% return versus 34% of Ibovespa ADTV1 increased by 340.9%, reaching R$19.4 million in 2005,
from R$4.4 million in 2004 ADTV1 for 4Q05 peaked up to R$21.0 million at Bovespa and
US$43.8 million at NYSE
2005 Highlights
1 Average daily trading volume
Investor Relations | page 37
Dec-05 Units included in the Corporate Sustainability Index - ISE
Feb-06 Moody's upgrades Unibanco's Financial Strength Rating
The index is an initiative of Bovespa, in partnership with IFC
(International Finance Corporation) ISE’s purpose is to measure the return of a theoretical portfolio
comprised by shares of companies committed to social
responsibility and corporate sustainability Units current weight in the ISE index is 9.569%
According to the agency, this upgrade “reflects Unibanco's
consistently robust core earnings and the management's ability to
steer the bank towards higher-yielding businesses, while
maintaining asset quality and controlling costs”.
2005 Highlights
Investor Relations | page 38
Retail
Wholesale 19.0% loan portfolio growth, 2005 versus 2004
Lead manager in the issuance of 18 debentures, ranking 1st by number of
transactions and 2nd in origination and distribution
2nd place in BNDES-Exim modality, reaching a 18% market share, and 3rd place in
BNDES general ranking
Manager in 4 of the main Brazilian stock public offerings, totaling approximately
US$1.5 billion - including the participation as lead manager of Unibanco’s Units and
GDSs offering, the largest equity deal in Brazil since 2002
Top 10 Research House, according to Institutional Investor. 1st place in Consumer
Goods category and 3rd place in Aerospace, Transportation and Industrials category
Retail segment surpassed 20 million clients
Expansion of Fininvest and Hipercard operations
SuperPoupe deposits reached R$3 billion
New positioning
New service model in the branch network, the “Novo Modelo de Atendimento”
New logoNew marketing campaign
2005 Business Units Highlights
Investor Relations | page 39
Insurance
Wealth Management
Leadership in property, aviation, D&O, energy, and extended warranty products
Increase in the participation at IRB-Brasil Re to 11%
Issuance of the first environmental insurance policy in Brazil
Combined Ratio of 95.4% in 4Q05, the best ever for Unibanco AIG Seguros
31.4% growth in Insurance and Private Pension Plans Technical Reserves in 2005
Private Bank ranked 2nd in assets under management, with a 11.4% market
share
Rating AMP1 (very strong) by Standard & Poors Rating Services
Top “Gestão de Renda Variável” asset management award - by Valor
Econômico newspaper
2005 Business Units Highlights
Investor Relations | page 40
Annex II
Dividends
Investor Relations | page 41
Dividend History
35% 38% 37% 38% 35% 35% 36% 37% 35%
1st Half
2nd Half
R$ Million
• Unibanco has paid semi-annual dividends for more than 3 decades• From 2005 on, Unibanco started paying quarterly dividends
Pay Out Ratio
Investor Relations | page 42
Annex III
Ratings
Investor Relations | page 43
Unibanco Ratings
Fitch Ratings
Unibanco
BB-
Foreign Currency
Brazil
Long Term
Short Term
BB-
B
B
BB-
Local Currency
Brazil
Long Term
Short Term
-
Unibanco BB B
Standard and Poor’s
Unibanco
BB
Foreign Currency
Brazil
Long Term
Short Term
BB
B
B
BB+
Local Currency
Brazil
Long Term
Short Term
BUnibanco BB B
Moody’s
Long TermDebt
Long Term Deposits
Short Term Deposits
Financial Strength
Unibanco Ba1 NP C-B1
Brazil Ba3 B1 NP -
Global Scale: Foreign Currency Global Scale: Local Currency
Long Term Deposits
Short Term Deposits
Unibanco P-2A3
Brazil - -
Investor Relations | page 44
Annex IV
New marketing campaign
Investor Relations | page 45
Renewed Brand - 2005
Investor Relations | page 46
For further information contact our Investor Relations Area atphone: 5511-3097-1980
fax: 5511-3097-1585email: investor.relations@unibanco.com
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.