Investor Relations | page 1 Investor Relations | 1.

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Investor Relations | page 1 Investor Relations | 1

Transcript of Investor Relations | page 1 Investor Relations | 1.

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Wholesale and Wealth Management

Audit Committee

Gabriel Jorge FerreiraChairman

Members

Board of Directors

Pedro MalanChairman

Pedro Moreira SallesVice-Chairman

Board Members

CEO

Pedro Moreira Salles

Retail

Organizational Structure

Prominent Board Members Independent Audit Committee

Legal and Tax Planning, Control, Operations and IR

TreasuryInsurance and PensionsHR and Communication

Risk, Compliance and Operational Efficiency

Guilherme A. Ferreira

Israel Vainboim

Pedro Bodin

Armínio Fraga

Joaquim F. Castro Neto

João DionisioFrancisco Pinto

Israel VainboimEduardo A. GuimarãesGuy Almeida Andrade

Marcos LisboaGeraldo TravagliaClaudia Politanski

Demosthenes Madureira

Márcio Schettini José Rudge Daniel Gleizer

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Individuals

Car Loans

Corporate

Total Portfolio

Loan Portfolio Growth

Credit Cards

Consumer Finance Companies

Sep-06Jun-07Sep-07

R$ Million

Mortgages

SMEs

Large Corporate

Portfolio highlights

Quarter %

12 months

8.2

24.6

29.0

70.6

5.7 20.6

12.1 42.820,883

30,761

51,644

5,412

2,762

31.25.0

14.49.7

1,586 11.62.8

9,729 37.112.1

21,032 13.72.7

5,759

Payroll36.29.71,400Own portfolio

319.144.32,285Acquired portfolio

Other branch network loans 1.6 23.95,499

31.2 152.43,685

16,383

26,940

43,323

4,330

2,649

1,460

7,955

18,985

4,205

1,128

787

4,507

1,915

23,402

32,500

55,902

5,680

3,030

1,630

10,909

21,591

7,175

1,536

3,298

5,586

4,834

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Credit: UBB x Brazilian Financial System

100

107 117

125

105

119

129

Jun-07 Sep-07Sep-06 Dec-06

Brazilian Financial System

Credit Evolution

Sep-06 = 100

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Personal Loans – Mix of Brazilian Financial System

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Dec

/01

Apr/0

2

Sep/

02

Feb/

03

Jul/0

3

Dec

/03

May

/04

Oct

/04

Mar

/05

Aug/0

5

Jan/

06

Jun/

06

Dec

/06

Jan/

07

Feb/

07

Mar

/07

Apr/0

7

May

/07

Jun/

07

Jul/0

7

Aug/0

7

Sep/

07

Overdraft Loans

Personal Loans

Payroll Loans

Vehicles

Mortgage Loans

Credit Cards

Others

Durable Goods Financing - Others

37%

63%

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Sep-06 Sep-07

4,205

7,175

+70.6%

3Q06 = 100

Auto Financing

3Q07 3Q07

MarketMarket

Cars + Trucks & Buses Loans

Focus: New Cars (Financed Units) Focus: New Trucks & Buses (Financed Units)

R$ Million

3Q06 = 100

31%47%

69%53%

New vehicles

Used vehicles

352

143149

139

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Wholesale Highlights

Export Foreign Exchange

BNDES

Equity Research

Origination and

Distribution

As a financial agent for BNDES, Unibanco disbursed R$3 billion during

9M07, maintaining its 3rd place in the BNDES overall ranking

58% growth in Equity average daily trade volume

3rd place in Fixed Income Anbid Ranking

One of the Top 10 Research Houses in the 2007 All-Brazil Research Team ranking, from Institutional Investor magazine - Awards to the analysts of the Consumer Goods and Banking and Financial Services Sectors

Volume of US$ 6.6 billion in 9M07

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R$ billion

Distribution by Segment

Total: R$ 48.7 billion

Corporate 4.7

10%

Institutional 9.4

19%Private 7.6

16%

Own Distribution 12.4

25%

Retail 14.6

30%

26.9

Dec-03

33.0

Dec-04

37.4

Dec-05

43.8

Dec-06

48.7

Sep-07

Assets Under Management

Unibanco Asset Management

R$ billion

September 2007

81.0%

11.2%

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9M07

2,621

1,885

736

Net income

Recurring net income

Result from non recurring events

R$ Million

Performance

33.7%

24.5%

ROAE

ROAE before non recurring events

3Q07

1,199

667

532

50.2%

26.5%

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Net Income

Results from non recurring events

Income Statement SummaryR$ Million

Gross Profit from Financial Intermediation

Personnel and Administrative Expenses

Fees from Services Rendered

Provisions for Loan Losses

Net Profit from Financial Intermediation

Net Income before non recurring events

2Q07

2,076

910

(1,417)

1,045

841

(545)

2,621

203

638

Tax Rate 24%

3Q07 3Q06 9M069M07

7,231

(1,889)

5,342

2,600

(4,109)

2,626

(460)

1,174

21%

1,634

Operating Income before non recurring events

106

2,481

(579)

1,902

885

(1,434)

911

(460)

21%

566

6,060

2,704

(4,215)

3,006

2,621

(1,629)

7,689

736

1,885

24%

2,100

925

(1,414)

1,024

1,199

(560)

2,660

532

667

22%

Other Operating Income (Expenses) (524) (1,207)(442) (1,543)(587)

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-

Gain on Redecard’s IPO 680

(128)

-

(20)

532

R$ Million

285

-

(572)

(47)

(142)

203

285

680

(699)

(47)

(162)

736

- 679 679

2Q073Q07 9M07

Result from non recurring events

Non Recurring Events(1)

(1) Net of taxes

Other provisions

Result from the sale of Serasa's stake

Provision for loan losses

Change in participation on our subsidiary UPS

Labor, civil, and fiscal provisions

Non Recurring Events

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Annualized ROAE Stockholders’ Equity (R$ Bln)

Net Income(1)

Operating Income(1)

PerformanceR$ Million

9.0

3Q05

11.6

3Q07

9.6

3Q06 9M06 9M079M05

9.6

11.6

(1) Before non recurring events

Performance

23.3%

24.8%

26.5(1)%

24.5(1)%

23.1%

21.3%

9.0

3Q07/3Q063Q07 9M07 9M07/9M06

3,006

1,885

1,024

667

12.4%

17.8%

14.5%

15.4%

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ROAE EvolutionR$ Million

(1) Before non recurring events

Annualized ROAE (%) Stockolders’ Equity (R$ bi)

21.0%

25.8%

9.9

24.8%

8.4

16.1%

7.9

25.1%

10.3

1Q072Q06 3Q06 4Q061Q051Q04

9.89.6

1Q06

9.5

24.0%24.7%

23.0%23.3%

24.2%

8.7

2Q05 3Q05

9.0

4Q05

9.3

2Q07 3Q07

10.8

11.6

26.7(1)% 26.5(1)%

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Destaques

Total loan portfolio growth:

8.2% QoQ (6.8% in the Brazilian Financial System)

29.0% YoY (24.8% in the Brazilian Financial System)

Payroll loans: 31.2% QoQ (152.4% YoY)

Auto Loans: 24.6% QoQ (70.6% YoY)

SMEs: 12.1% QoQ (37.1% YoY)

Loan Portfolio

13.8% reduction in provision for loans losses expenses, 9M07 vs 9M06

Better ratio of D to H portfolio over total loans (4.9% vs 6.7% in September 2006)

Better ratio of non-accrual portfolio over total loans (4.1% vs 5.4% in September 2006)

118% non-accrual loan portfolio coverage (past due and falling due credits)

Asset Quality Improvement

Stocks Unibanco ADTV(1) (Bovespa + NYSE): R$466 million in 3Q07 versus R$150 million in

3Q06, a 211% increase

Market Capitalization(2): R$37.7 billion

OperationalEfficiency

1.4% reduction in Personnel and Administrative Expenses in 3Q07 compared to 3Q06 Personnel and Administrative Expenses for companies under Unibanco’s direct

management: 1.0% variation compared to 3Q06 1.6% variation from 9M06

Better ratio of Cost to Assets (4.4% in 3Q07 versus 5.9% in 3Q06)

Highlights

(1) Average Daily Trading Volume

(2) As of November 6th, 2007

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Financial Indicators

Net Profit from Financial Intermediation(R$ Million)

Total Assets (R$ Billion) Loan Portfolio (R$ Billion)

Earnings per Share (R$)

1,902

2,100

0.21

0.24(1)

0.201,957

1,884 0.21

Dec-06

3Q06 4Q06 1Q07 2Q07

Mar-07 Jun-07Dec-06 Mar-07Sep-06 Sep-06Jun-07 Sep-07 Sep-07

3Q07

2,076 0.23(1)

(1) Before non recurring events

104

134

45102

56

43

115 47

130 52

3Q06 4Q06 1Q07 2Q07 3Q07

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5.8%

R$ Million

5.5% 5.9%

2Q073Q07 9M07

Treasury Gains / Gross profit from financial intermediation

Treasury Gains

9M063Q06

6.6% 4.4%

Financial margin from treasury (A) 172 136

2,621 2,481

2,076 1,902

154

2,660

2,100

452

7,689

6,060

316

7,231

5,342

Gross profit from financial intermediation (B) Net profit from financial intermediation (C)

7.3% 7.2% 7.5%Treasury Gains / Net profit from financial intermediation

8.3% 5.9%

(A/B)

(A/C)

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Wholesale

Retail

R$ Million

Loan Portfolio Growth

Brazilian Financial System

23.2% 29.0%8.2%

16.6% 24.8%6.8%

9M07 Quarter 12 months

29.0%

Jun-07 Sep-07

8.2%

Sep-06

51,644

59%

41%

55,902

61%

39%

43,323

56%

44%

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Financial Margin After Provision Financial Margin

Provision for Loan Losses / Financial Margin

-800 b.p.

14.25%

11.25%

Selic Rate

Financial Margin

20.8%

27.2%

3Q073Q06 1Q071Q06

21.8%

2Q07

29.1%

4Q05

23.3%

21.1%

3Q06 3Q07

9.0%10.6%

8.1%

7.1%

2Q07 2Q06

27.9%8.5%

6.7%

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Asset Quality

D to H Portfolio / Loan Portfolio

Coverage Non-Accrual Portfolio

Coverage D to H Portfolio

Sep-06 Jun-07 Sep-07

100%

Sep-06 Jun-07 Sep-07

115%

5.2%

Sep-06 Jun-07 Sep-07

6.7%

4.9%

99%

87%

118%

109%4.5%

Sep-06 Jun-07 Sep-07

5.4%

4.1%

Non-Accrual Portfolio / Loan Portfolio

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Total Funding (A)

Demand Deposits

Savings Deposits

Core Deposits CDs

Core Deposits

Time Deposits + Debentures

Assets Under Management (B)

Total Funding + AUM (A+B)

Total Deposits + Debentures

R$ Million

Sep-07 Jun-07 Sep-06

Funding and AUM

Other Funding

86,12389,259 70,111

4,626

8,045

5,149

17,820

28,984

133,650

46,804

47,527

4,160

8,832

4,982

17,974

48,665

29,757

137,924

47,731

4,470

5,558

4,648

14,676

29,130

112,586

43,806

42,475

39,31941,528 26,305

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R$ Million

AdministrativeExpenses

Personnel Expenses

Personnel and Administrative Expenses

Companies under Unibanco´s direct management

3Q06

2.7%

1.0%

9M079M06

1.6%

2,349

1,630

3,979

2,349

1,567

3,916

3Q072Q07

791

567

1,358

781

541

1,322

823

522

1,345

2,349

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Fees from Services Rendered

R$ Million

Total fees from services rendered

Banking fees and commissions

Credit Cards(1)

Assets under management

2Q073Q07 3Q06

Serasa(3)

Subtotal

Other fees

(1) Hipercard + Unicard

9M07 9M06

(2) In 3Q07, Unibanco changed its participation in Redecard from 31.9% to 23.2%

Redecard(2)

(3) In 3Q07, Serasa’s result was accounted by the equity income method

492

89

910

493

90

885

141 114

37 35

816 794

94 97

556

88

925

144

-

881

93

1,530

257

2,704

406

71

2,470

277

1,384

277

2,600

323

96

2,270

286

57 5644 163 234

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Efficiency

Revenues

R$ Million

Efficiency Ratio Expenses

3Q073Q04

2,988

1,414

3Q05

2,136

1,308

3Q06

2,575

1,323

2,913

1,434

61.2%

47.3%

51.4%49.2%6.5%

4.4%

6.3%5.9%

Cost to Assets

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Investor Relations | page 36 Investor Relations | 36(*) As of November 6th, 2007

Sep-06 Dec-06 Mar-07 Sep-07Jun-07

UBB178

UBBR11 157

R$37.7 billion

Unibanco’s Market Cap(*)

Stocks

Units (UBBR11) and GDSs (UBB)

(1) Valid from December 2006 to November 2007.

Ibovespa 2.278

IBrX-50 3.482

ISE Sustainability Index(1) 5.884

UBBR11Sep to Dec 07 Sep to Dec 06

1.881

3.550

5.884

100

May to Aug 05(2)

0.984

2.955

N/A

Index Weighting (%)

(2) Inclusion in Ibovespa.

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R$ Million

Average Daily Trading Volume(Bovespa and NYSE)

Units and GDSs

2Q07

254

85

339

151

16

20011997

121

13

121

13

1999

Units (UBBR11)

GDSs (UBB)

2006

144

31

175

3Q07

362

466

104

2005

65

1984

2003

25

283

172

43

215

1Q07

42%

22%

37%

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Broker dealer

Use Unibanco’s resources available from the “Revenue Reserve” account

6 months, from August 10th, 2007 on

Company’s Objective

Unibanco Investshop Corretora de Valores Mobiliários S.A.

Authorized dates for the program

Stock Repurchase Program

2Q07 1Q07Stock Repurchase Program 2Q06Amountin Units

Average Price R$/Unit

3,283,100

885,000

4,168,100

21.28

25.25

22.13

Repurchase in 3Q07

Repurchase in October 2007

Total repurchased until October 23rd

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Moreira Salles Group

Float Units + GDS

Others

Total

525,398

1,074,053

28,338

1,627,789

Unibanco Holdings

Float Units + GDS

Others

Total

1,627,789

1,074,432

98,137

2,800,358

19%

38%

1%

58%

58%

38%

4%

100%

PNUnibanco Holdings

PN Unibanco

+ UNITs76.7%

Shareholders’ Structure

% of Unibanco shares

% of Unibanco shares

Thousands of Shares

1 GDS=10 Units

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Ratings

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Unibanco Ratings

Fitch Ratings

Unibanco

BB+

Foreign Currency

Brazil

Long Term

Short Term

BBB-

B

F3

BB+

Local Currency

Brazil

Long Term

Short Term

-

Unibanco BBB- F3

Standard and Poor’s

Unibanco

BB+

Foreign Currency

Brazil

Long Term

Short Term

BB+

B

B

BBB

Local Currency

Brazil

Long Term

Short Term

A-3

Unibanco BB+ B

Moody’s

Long TermDebt

Long Term Deposits

Short Term Deposits

Financial Strength

Unibanco Baa3(1) NP B-Ba2

Brazil Baa3 Ba2 NP

Global Scale: Foreign Currency Global Scale: Local Currency

Long Term Deposits

Short Term Deposits

Unibanco P-1A1

Brazil A1 -

(1) The Baa3 rating was attributed to the US$2 billion MTN Programme (Medium Term Note Programme) of Unibanco - União de Bancos Brasileiros, to the R$325 million notes indexed to the IGP-M (General Market Price Index) and payable in US dollars issued by Unibanco Grand Cayman Branch in February 2005, and to the Perpetual Bond issued by Unibanco Grand Cayman Branch in July 2005.

-

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