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Conference Call November 12, 2004

Consolidated Results. 3 rd Quarter 2004. Conference Call November 12, 2004. Performance Indicators. R$ Million. 3Q04. 2Q04. 3Q03. Operating Income. 556. 401. 428. Net income. 327. 305. 270. Earnings per share (R$) (1). 0.23. 0.22. 0.20. ROAE (%). 17.8%. 17.3%. 16.5%.

emmanuel-hansen
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Conference Call November 12, 2004

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  1. Consolidated Results 3rd Quarter 2004 Conference Call November 12, 2004

  2. Performance Indicators R$ Million 3Q04 2Q04 3Q03 Operating Income 556 401 428 Net income 327 305 270 Earnings per share (R$) (1) 0.23 0.22 0.20 ROAE (%) 17.8% 17.3% 16.5% Total assets 84,062 80,011 68,066 Total loans 30,667 30,045 26,624 Deposits + Funds 64,698 59,831 49,322 Stockholders' equity 7,932 7,704 7,023 (1) In August, 2004, a reverse stock split in a ratio of 100 shares per share was performed. Amounts from previous periods were adapted for better comparison.

  3. Performance Indicators R$ Million 9M04 9M03 1,428 1,451 Operating Income Net income 908 761 Earnings per share (R$) (1) 0.65 0.55 ROAE 16.4% 15.2% (1) In August, 2004, a reverse stock split in a ratio of 100 shares per share was performed. Amounts from previous periods were adapted for better comparison.

  4. Consolidated Results R$ Million 3Q04 2Q04 3Q03 Profit from financial intermediation 1,400 1,142 1,116 (+) Fees from services rendered 829 820 685 (-) Personnel & Adm. Expenses (1,308) (1,242) (1,181) (+/-) Other Operating Income/ Expenses (365) (319) (192) (=) Operating Income 556 401 428 (+/-) Non-operating Income (Expenses), net (5) 18 (7) (+/-) Income tax and social contribution (141) (18) (56) (-) Profit Sharing / Minority Interest (83) (96) (95) Net Income 327 305 270

  5. Financial Margin R$ Million 3Q04 2Q04 3Q03 Revenue from Financial Intermediation 3,095 3,414 3,419 Expenses on Financial Intermediation (1,420) (1,956) (1,887) Financial Margin (Before Provision for Loan Losses) (A) 1,675 1,458 1,532 Provision for Loan Losses 275 316 416 Financial Margin (After Provision for Loan Losses) 1,400 1,142 1,116 82,036 75,758 67,079 Total Average Assets (-) Average balance of interbank loans 15,316 12,286 9,623 (=) Adjusted total assets 66,720 63,472 57,456 (=) Adjusted total assets – Fixed assets (B) 63,183 59,505 54,178 Adjusted annualized financial margin (A / B) 11.0% 10.2% 11.8% Note: Unadjusted net financial margin would be 8.8%, 8.4% and 10.0% in 3Q04, 2Q04 and 3Q03, respectively.

  6. Effective income tax rate R$ Million 3Q04 2Q04 3Q03 Income before taxes and profit sharing to employees 551 419 421 Profit sharing to employees (46) (57) (59) (A) Income before taxes and after profit sharing 505 362 362 Income Tax @ 25% and Social Contribution @ 9% (172) (123) (123) Tax deductible dividends (interest on capital) /Permanent differences (net) 67 72 54 Non-taxable / non-deductible exchange rate fluctuation and equity income (36) 33 13 (B) Income Tax & Social Contribution for the period (141) (18) (56) (B /A ) Effective Income Tax & Social Contribution Rate 28% 5% 15%

  7. Other Operational Income / Expenses Analysis of Q-o-Q changes R$ Million D 3Q04 2Q04 3Q03 3Q04-3Q03 Other Operating Income / Expenses (365) (319) (192) (173) Main Changes Provision for labor, fiscal and civil contingencies (114) (106) (74) (40) Credit Card issuance expenses (92) (87) (63) (29) Levies on fees and interest (199) (174) (160) (39) Goodwill amortization (39) (36) (20) (19) Early Retirement Program (9) (15) - (9) Total Changes Above (136)

  8. Securities Portfolio R$ Million Market Value Adjustment Market Market Value Value D D 3Q04 2Q04 Adjustment Adjustment 09/30/2004 06/30/2004 Income Statement Impact 77 11 65 -46 Stockholders´ Equity Impact (111) 54 (165) 92 Held To Maturity R$ Million Amortized Market Value Cost Adjustment Securities Held to Maturity 5,338 5,621 + 283 Unrealized gains

  9. Fees from Services Rendered R$ Million 3Q04 2Q04 3Q03 Banking fees and other fees and commissions 408 403 372 Credit Cards 321 321 232 Unibanco’s cards + Redecard 214 220 148 Credicard 107 101 84 Asset management 100 96 82 Total fees from services rendered 829 820 685

  10. Personnel and Administrative Expenses R$ Million 3Q04 2Q04 3Q03 Personnel Expenses 527 484 491 Administrative Expenses 781 758 690 Total 1,308 1,242 1,181 Efficiency Ratio 61.2% 63.4% 58.2%

  11. 26,624 30,045 30,667 AA AA 36.0% 36.4% 39.2% A A 34.4% 40.9% 37.7% B 11.6% C B 8.1% 8.1% 8.4% 6.9% 6.8% C D-H 9.6% 8.1% 7.8% D-H Sep 03 Jun 04 Sep 04 Loan Portfolio Breakdown Non-Accrual Portfolio R$ million 92.2% 91.9% 90.4% 99.2% 96.6% 6.0% 4.7% 1.0% 1.0% 3Q03 3Q04 Coverage ratio of non-accrual Portfolio Non-Accrual Portfolio/ Loan Portfolio Net Write-Off / Total Portfolio AA-C Loan Portfolio

  12. Loan Portfolio – Individuals R$ million 27.0% 4.8% 11,496 10,969 15.0% 9,050 3.9% 103.1% 26.2% 20.3% 6,248 6,012 5,434 5.1% 10.1% 1.3% 1,976 1,958 1,314 1,297 1,779 1,881 1,092 1,551 973 Multiple Bank and Consumer Finance Unibanco's Credit Credicard Total Individuals Other Companies Companies Cards Sep-03 Jun-04 Sep-04

  13. Loan Portfolio – Corporate R$ million 9.1% 2.3% 0.5% 19,171 19,076 -2.5% 17,574 30.5% 14,021 13,674 13,361 8.7% 5,497 5,055 4,213 Micro, Small and Middle Companies Large Corporate Total Corporate Sep-03 Jun-04 Sep-04

  14. Loan Portfolio Mix R$ Million 25,827 30,667 26,751 27,917 45% 50% 54% 53% 55% 50% 47% 46% Dec-01 Dec-02 Dec-03 Sep-04 Retail Wholesale Note: Wholesale includes only large corporates

  15. Loan Portfolio Mix R$ Million 15.2% 2.1% 12.8% D% Sep-04/Sep-03 30,667 30,045 26,624 4.8% 21.2% Individuals +27.0% 11,496 10,969 9,050 R$6.8 Bln US$2.2 Bln R$6.3 Bln US$2.2 Bln R$5.9 Bln US$2.0 Bln 0.5% 8.5% Corporate +9.1% 19,076 19,171 17,574 US Dollar indexed portfolio Sep-03 Jun-04 Sep-04

  16. Consumer Companies (including Credicard Group) R$ Million 3Q04 2Q04 3Q03 Contribution to Unibanco’s results 161 150 134 Revenues 5,915 5,919 3,974 Credit Portfolio 5,286 4,992 3,641 Provision for Loan Losses 188 193 199 Provision for Loan Losses / Credit Portfolio 3.6% 3.9% 5.5% Includes: Fininvest, Unicard, HiperCard, 50% LuizaCred, 50% PontoCred, 33.3% Credicard, 33.3% Orbitall and 31.94% Redecard.

  17. Consumer Companies (without Credicard and Orbitall) R$ Million 3Q04 2Q04 3Q03 137 123 110 Contribution to Unibanco’s results Revenues 4,325 4,353 2,502 Credit Portfolio 3,972 3,695 2,550 Provision for Loan Losses 155 163 167 Provision for Loan Losses / Credit Portfolio 3.9% 4.4% 6.5% Includes: Fininvest, Unicard, HiperCard, 50% LuizaCred, 50% PontoCred and 31.94% Redecard.

  18. Deposits 31,014 28,925 24,986 7.2% 24.1% SuperPoupe 1,030 403 - 155.6% - Funds 32,654 30,503 24,336 7.1% 34.2% 64,698 59,831 49,322 8.1% 31.2% Funding R$ Million D % Q-o-Q D % Y-o-Y Sep-04 Jun-04 Sep-03

  19. Insurance, Extended Warranty and Pension R$ Million 3Q04 2Q04 3Q03 Net Premium Written + Pension Contributions 1,039 1,163 753 Insurance and Pension Reserves 5,106 4,847 3,682 Net Income 76 79 58 Loss Ratio 44.1% 50.5% 58.4% Combined Ratio 99.4% 99.6% 103.9% Total Reserves 38.7% D% Sep-04/Sep-03 5.3% 31.6% 5,106 4,847 Insurance + Warranty +26.8% Private Pension +42.2% 3,682 1,067 1,077 842 4,039 3,770 2,840 Sep-03 Jun-04 Sep-04

  20. Macroeconomic Perspectives 2004 2005 GDP growth 4.2% 4.0% Fx Rate (R$ / US$) 2.90 3.00 SELIC (end of the year) 17.75% 15.50% IPC-A 7.1% 6.1%

  21. Unibanco Guidelines 2004 GUIDANCE Aug 13, 2004 NEW GUIDANCE Sept-04 / Sept-03 Loan Portfolio 15% 18% 15% Corporate 9.1% 9% 11% Large 2.3% 5% 2% Small / Medium 30.5% 22% 37% Individuals 27% 30% 15% Multiple Bank and Other Companies 15.0% 22% 20% Consumer Finance 26.2% 23% 34% Unibanco’s Credit Cards 103.1% 54% 107% 20.3% Credicard Administrative Expenses 9% 11% 9% 16% 12-16% 14-16% Fee Income

  22. Credicard Shareholders’ Restructuring

  23. Credicard – Transaction background 7.5 million credit card portfolio places Unibanco as a leading player in this segment. Unibanco has its own credit card processing unit. Main issuer of private label in Brazil: 9.5 million cards. Accretive transaction to shareholders. Unibanco has kept equity in Redecard, a highly profitable company, which manages the merchants’ relationship. Promising partnerships and alliances with major retail chains.

  24. Credicard: Before and After the Transaction Before 33.3% 33.3% 33.3% After 50% 50%

  25. Orbitall: Before and After the Transaction Before 33.3% 33.3% 33.3% After 100%

  26. Redecard: No Changes 32% 32% 32% 4%

  27. Shareholders’ Restructuring – Credicard Group R$ Million Credicard Orbitall Total Transaction amount 1,543 140 1,683 (99) (99) (63) (63) (162) (162) (-) Book value (-) Allowance for future contingencies (90) (90) (10) (10) (100) (100) Pre-tax non-operational result 1,354 1.354 67 67 1.421 1,421 Transaction multiples Price / Book value 15.6 2.2 10.4 Price / Book Price / Earnings 18.4 9.5 17.1 Unibanco’s multiples (Unit @ R$15.15) Price / Book Price / Book value 1.3 – 1.4 Price / Earnings 8.1 Price / Earnings

  28. Balance Sheet and P&L Impacts

  29. Cash proceeds + R$1.7 billion 46% reduction in goodwill balance - R$778 million (Bandeirantes) Improvement in goodwill/equity ratio from 21.4% to 11.4% (as of Sep/04) Reduction in investments account - R$162 million Loan portfolio reduction - R$1.3 billion Interest income from transaction proceeds + R$284 million (CDI @16.6% 2005) Reduction of goodwill amortization +R$95 million Credicard / Orbitall equity pick-up elimination - R$112 million Maintenance of Redecard equity pick-up R$ 102 million Transaction impacts – Estimates for 2005 Balance Sheet P&L

  30. Estimated 2005 impacts R$ million Additional interest income (interbank rate (CDI) @ 16.6% 2005) 284 Elimination of goodwill amortization 95 Equity pick-up lost (2004 + interbank rate (CDI) @16.6% 2005) (112) Income tax (129) Incremental net income for 2005 138 ROE improvement 1.5%

  31. Our Credit Card and Private Label Businesses

  32. Credit Card business R$ million Credit cards issued (million cards) September - 2004 December-1999 7.6 7.5 4.1 2.0 Unibanco’s cards* Credicard Unibanco’s portfolio, as of September 2004: 7.5 million credit cards 9.5 million private label cards High potential retail client base (Ponto Frio and Magazine Luiza) * Unicard, HiperCard and Fininvest

  33. Unibanco andCredicard’s revenues comparison % 3Q01 3Q02 3Q03 3Q04 Credicard 100.0 100.0 100.0 100.0 Unibanco’s cards 44.3 45.3 48.1 78.0 Private Label Unibanco 10.9 14.3 16.3 20.9 Total Unibanco 55.2% 59.6% 64.4% 98.9%

  34. Billing – Credit cards – without HiperCard 23.0% 21.0% 19.0% 17.0% 15.0% 13.0% 11.0% 9.0% 7.0% 5.0% Credicard 14.2% 13.9% Banco do Brasil 12.7% Itaú 10.8% Bradesco UBB = Visa + MasterCard 7.6% Market total: Abecs

  35. 14.2% 13.9% 12.7% 11.7% 10.8% Billing – Credit cards – with HiperCard 23.0% 21.0% 19.0% 17.0% 15.0% 13.0% 11.0% 9.0% 7.0% 5.0% Credicard Banco do Brasil Itaú Bradesco UBB = Visa + MasterCard + HiperCard Market total: Abecs

  36. Total Cards Issued – Sept/04 TOTAL After Before Cards Issued 4,206 2,621 8,486 1,422 305 2,453 19,494 17,041 (thousand) Hipercard - 2,621 - - - - 2,621 2,621 Visa / MC 4,206 - 708 - - 2,453 7,368 4,914 Private Label - - 7,779 1,422 305 - 9,505 9,505 Billings 4,603 3,093 2,251 479 122 4,599 15,146 10,548 (R$ million) Loan Portfolio 1,400 891 1,071 156 34 1,171 4,723 3,553 (R$ million)

  37. For further information contact our Investor Relations Area atphone: 5511-3097-1980fax: 5511-3813-6182email: 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.

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