unibanco´s and cgd´s strategic alliance in brazil conference call on july 12, 2000

Unibanco´s and CGD´s Strategic Alliance in BrazilUnibanco´s and CGD´s Strategic Alliance in Brazil

Conference call on July 12, 2000Conference call on July 12, 2000

ContentsContents

The TransactionThe Transaction

Ownership Structure Ownership Structure

Strategic Alliance ReasoningStrategic Alliance Reasoning

Pro Forma Results of TransactionPro Forma Results of Transaction

Unibanco vs. PeersUnibanco vs. Peers

ConclusionConclusion

The Transaction The Transaction

Unibanco Caixa Geral de Depósitos

Will join the group of strategic Will join the group of strategic shareholders receiving up to shareholders receiving up to 14.8% of the total capital of 14.8% of the total capital of Unibanco, directly and indirectly Unibanco, directly and indirectly

CGD will receive 10% of the CGD will receive 10% of the voting capital of UBB Holdings voting capital of UBB Holdings and the remainder of the value and the remainder of the value will be paid in Units will be paid in Units

Transaction valued at up to Transaction valued at up to R$ 1,258 million (shares to be R$ 1,258 million (shares to be issued priced at approximately issued priced at approximately US$ 32)US$ 32)

Majority control (98.1%) of Majority control (98.1%) of Banco Bandeirantes and its Banco Bandeirantes and its subsidiaries, including Trevo subsidiaries, including Trevo Seguradora, as well Seguradora, as well as as

assets assets and liabilities of localand liabilities of localbranch of CGD, with a branch of CGD, with a combined book value of combined book value of R$ 462 MMR$ 462 MM

Securitization notes: R$ 70 MMSecuritization notes: R$ 70 MM

Total book value of R$ 532 MMTotal book value of R$ 532 MM

Next StepsNext Steps

Due diligence by independent auditing and Due diligence by independent auditing and legal firms to be finalized by late August, 2000legal firms to be finalized by late August, 2000

Closing of transaction and capital increaseClosing of transaction and capital increase

Full integration of operations: 1 to 1 Full integration of operations: 1 to 1 1/21/2 year year

The Transaction The Transaction

Current Ownership StructureCurrent Ownership Structure

UBB HoldingsUBB Holdings

Moreira Salles GroupMoreira Salles Group 74.174.1 - - 20.120.1CommerzbankCommerzbank 10.010.0 15.715.7 7.8 7.8DKBDKB 6.8 6.8 - - 1.9 1.9Sul America + Arby’sSul America + Arby’s 8.1 8.1 - - 2.2 2.2Float UnitsFloat Units - - 84.184.1 27.5 27.5Float OthersFloat Others 1.0 1.0 0.2 0.2 0.30.3

Total 100.0 100.0 59.8%

UnibancoUnibanco

Unibanco HoldingsUnibanco Holdings 96.996.9 18.418.4 59.859.8Commerzbank Commerzbank - - 4.2 4.2 2.0 2.0DKBDKB - - 7.5 7.5 3.6 3.6Float UnitsFloat Units - - 58.258.2 27.5 27.5Float OthersFloat Others 3.1 3.1 11.711.7 7.17.1

Total 100.0 100.0 100.0

Notes: As of June 30, 2000Unibanco´s total capital of 123,119,563,672 shares includes 324,523,855 in treasury shares

ONON%%

PNPN%%

Direct & IndirectDirect & Indirect in UBB %in UBB %

Ownership Structure after ClosingOwnership Structure after Closing

UBB HoldingsUBB HoldingsMoreira Salles GroupMoreira Salles Group 66.766.7 - - 17.217.2CGDCGD 10.010.0 18.118.1 8.7 8.7CommerzbankCommerzbank 9.0 9.0 12.912.9 6.7 6.7DKBDKB 6.2 6.2 - - 1.6 1.6Sul America + Arby’sSul America + Arby’s 7.2 7.2 - - 1.9 1.9Float UnitsFloat Units - - 68.968.9 23.4 23.4Float OthersFloat Others 0.9 0.9 0.1 0.1 0.30.3

Total 100.0 100.0 59.8

UnibancoUnibancoUnibanco HoldingsUnibanco Holdings 97.497.4 16.116.1 59.859.8CGDCGD - - 13.313.3 6.1 6.1Commerzbank Commerzbank - - 3.7 3.7 1.7 1.7DKBDKB - - 6.6 6.6 3.0 3.0Float UnitsFloat Units - - 50.750.7 23.4 23.4Float OthersFloat Others 2.6 2.6 9.6 9.6 6.06.0

Total 100.0 100.0 100.0

Note: Unibanco´s total capital increases to 144,562,601,917 shares (including 324,523,855 in treasury shares)

ONON%%

PNPN%%

Direct & IndirectDirect & Indirect in UBB %in UBB %

Hypothesis CGD receives full 14.8%Hypothesis CGD receives full 14.8%

14.8%14.8%


Maintain relevant presence in Brazil

Partnership guarantees continuous support to Portuguese companies and individuals with interests in Brazil and vice versa

Creation of a Portuguese Desk in Brazil

Further grow operations in Brazil

For Caixa Geral de Depósitos:For Caixa Geral de Depósitos:


Business growth in key regions

Client base and distribution channels expansion

Market share increase in our core businesses: retail, credit cards, insurance, retirement plans and asset management

Partnership guarantees continuous support to Portuguese companies and individuals with interests in Brazil and vice versa: creation of a Brazilian Desk in Portugal

New important strategic shareholder

For Unibanco:For Unibanco:

Strategic Geographic Expansion Strategic Geographic Expansion

Main regions to expand:Main regions to expand:

Highest economic activity Highest economic activity level in Brazillevel in Brazil

Northeast Region Northeast Region Fastest growing region by GDPFastest growing region by GDP

Southeast Region: Southeast Region: State of São PauloState of São Paulo

Bandeirantes55%

Bandeirantes55%

Bandeirantes20%

Bandeirantes20%

North RegionNorth RegionHomes > R$ 680: 1.3 MM (7%)Homes > R$ 680: 1.3 MM (7%)Branches: 837 (4%)Branches: 837 (4%)UBB: 10 (0.9%)UBB: 10 (0.9%)Band : 25 (5%)Band : 25 (5%)UBB + Band : 35 (2.2%)UBB + Band : 35 (2.2%)

Northeast RegionNortheast RegionHomes > R$ 680: 2.4 MM (13%)Homes > R$ 680: 2.4 MM (13%)Branches: 3,215 (14%)Branches: 3,215 (14%)UBB: 37 (3.4%)UBB: 37 (3.4%)Band : 99 (19.6%)Band : 99 (19.6%)UBB + Band : 136 (8.5%)UBB + Band : 136 (8.5%)

Central East RegionCentral East RegionHomes > R$ 680: 1.2 MM (7%)Homes > R$ 680: 1.2 MM (7%)Branches: 1,750 (7%)Branches: 1,750 (7%)UBB: 37 (3.4%)UBB: 37 (3.4%)Band : 40 (8%) Band : 40 (8%) UBB + Band : 77 (4.8%)UBB + Band : 77 (4.8%)

South RegionSouth RegionHomes > R$ 680: 3.3 MM (18%)Homes > R$ 680: 3.3 MM (18%)Branches: 4,833 (20%)Branches: 4,833 (20%)UBB: 122 (11.2%)UBB: 122 (11.2%)Band : 59 (12%)Band : 59 (12%)UBB + Band : 181 (11.4%) UBB + Band : 181 (11.4%)

Southeast RegionSoutheast RegionHomes > R$ 680: 10.3 MM (55%)Homes > R$ 680: 10.3 MM (55%)Branches: 12,636 (55%)Branches: 12,636 (55%)UBB: 883 (81.1%)UBB: 883 (81.1%)Band : 281 (55.8%)Band : 281 (55.8%)UBB + Band : 1,164 (73.1%)UBB + Band : 1,164 (73.1%)

Source: IBGE, Central Bank of BrazilSource: IBGE, Central Bank of Brazil

Strategic Geographic DistributionStrategic Geographic Distribution

With this association, Unibanco grows its client base by 22%

Strategic Geographic Expansion Strategic Geographic Expansion

Region # Clients % # Clients % # Clients %

SouthSouth 256256 11%11% 3838 8%8% 295295 11%11%

SoutheastSoutheast 1,7901,790 79%79% 270270 55%55% 2,0592,059 75%75%

Central EastCentral East 8888 4%4% 3333 7%7% 121121 4%4%

NortheastNortheast 107107 5%5% 130130 27%27% 237237 9%9%

NorthNorth 1414 1%1% 1616 3%3% 3030 1%1%

TotalTotal 2,2552,255 100%100% 487487 100%100% 2,7422,742 100%100%

UBB Bandeirantes UBB + BandeirantesIn thousands

Current Account HoldersCurrent Account Holders


Unibanco Bandeirantes Unibanco +

Bandeirantes

Growth

Points of Sale 1,089 504 1,593 46%

- Branches 642 253 895 39%

- Corporate Site Branches 419 251 670 60%

Current Account Holders (thousands)

2,255 487 2,742 22%

Credit Cards Issued (thousands) 2,859 140 2,999 5%

As of March, 2000

The New UnibancoThe New Unibanco

- In Store Branches 28 - 28 -

Unibanco+

Credibanco

BandeirantesUnibanco + Credib+ Band

Growth(%)

Total Assets 35,922 9,464 45,386 26%

Credit Portfolio 15,914 2,234 18,148 14%

Deposits 8,823 2,393 11,216 27%

- Demand Deposits 1,441 182 1,623 12%

- Savings Accounts 2,802 1,199 4,001 43%

Insurance Premiums Written * 744 290 1,034 39%

Assets Under Management 15,516 1,864 17,380 12%



As of March, 2000 except premiums

In R$ million

* Full year 1999


1998 1999 mar/00 Pro Forma

Equ

ity (

R$

b ill i

o n)

Loan Growth Potential (R$ Billion)

5.9 13.4 14.1

14.16

17.47 17.59 18.78 BIS %

2.9

4.0 4.2

20.7

5.5



Our business plan indicates thatOur business plan indicates that following the capital increase, EPS on a following the capital increase, EPS on a

fully dilutive basis will grow in the year fully dilutive basis will grow in the year 2000, as compared to 1999, by 8 to 12%2000, as compared to 1999, by 8 to 12%

Our decision was made with conservative Our decision was made with conservative assumptions and an IRR of 17%+assumptions and an IRR of 17%+

RatingsRatings

Moody´s, Standard & Poor´s, Fitch IBCA Moody´s, Standard & Poor´s, Fitch IBCA and BankWatch have all affirmedand BankWatch have all affirmed

Unibanco´s ratings following the alliance Unibanco´s ratings following the alliance announcementannouncement

Distribution Network, Pro FormaDistribution Network, Pro Forma

1,593

3,434

2,426

1,4861,121504

312

BradescoBradesco ItaúItaú UBB +UBB +BandeirantesBandeirantes

HSBCHSBC ABN ABN AmroAmro

SantanderSantander

1,089

Unibanco vs. Peers Unibanco vs. Peers

As of March, 2000As of March, 2000

Total Assets, Pro FormaTotal Assets, Pro Forma

15,948

27,229

34,333+

1,589

54,094

80,324

9,464

HSBCHSBC ABN RealABN Real UBB +UBB +Credibanco +Credibanco +BandeirantesBandeirantes

ItaúItaú BradescoBradesco

45,386


As of March, 2000As of March, 2000R$ millionR$ million

Deposits, Pro FormaDeposits, Pro Forma

7,242 7,8768,491+ 332

22,131

37,434

2,393

HSBCHSBC ABN RealABN Real UBB +UBB +Credibanco +Credibanco +BandeirantesBandeirantes

ItaúItaú BradescoBradesco

11,216

R$ millionR$ million



Credit Operations, Pro FormaCredit Operations, Pro Forma

4,231

7,558

17,393

15,313+

601

27,576

2,234

HSBCHSBC ABN RealABN Real ItaúItaú UBB +UBB +Credibanco +Credibanco +BandeirantesBandeirantes

BradescoBradesco

18,148

R$ millionR$ million



Unibanco already starts the 2H00 taking an important step towards growth with profitability

Other recent steps include the acquisition of

Credibanco and the creation of Banco1.net

with PT Multimedia

Our capital “warchest” will be further strengthened

ConclusionConclusion

The foregoing statements 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. Except for historical information contained herein, the matters discussed in this presentation contain forward-looking statements that involve risks and uncertainties, including but not limited to economic, competitive, governmental and technological factors affecting the Company’s operations, markets, products and prices, and other factors detailed in the Company’s filings with the Securities and Exchange Commission which readers are urged to read carefully in assessing the forward-looking statements contained herein.

For more information contact our

Investor Relations Area at

phone : 55-11-3097-1626 / 1313

fax: 55-11-3813-6182

email: [email protected]

unibanco´s and cgd´s strategic alliance in brazil conference call on july 12, 2000

Documents

transaction slide

float units

unibanco unibanco holdings96

unibanco unibanco holdings97

total capital of unibanco

units transaction

brazil partnership

cgds strategic alliance