2. The Alliance between Unibanco and PT Multimedia
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Joining efforts to succeed in the new economy:
The Alliance between Unibanco and PT Multimedia
May 22th , 2000

3. Main reasons for the partnership
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A g e n d a
Main reasons for the partnership
Principles and characteristics of the alliance
Banco1.net

4. w w w . b a n c o 1 . n e t
Main reasons for the partnership
To join the competencies of the two reference institutions in the Financial and Telecommunications Market, with a view to creating a leading Bank and Financial Portal in the New Economy.

5. 6.2 4.3 63 328 Main reasons for the partnership
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Main reasons for the partnership
Number of customers in Brazil (Million)
6.2
4.3
1999 Results
US$ MM (Brazil ) 63
328

6. The new economy as a key opportunity for close cooperation
w w w . b a n c o 1 . n e t
Main reasons for the partnership
The new economy as a key opportunity for close cooperation
Third largest financial private group in the Brazilian market.
Financial Conglomerate operating in Retail and Wholesale Banking, Investment Banking, Insurance, Private Pensions, Capitalization, Credit Card and Asset Management.

7. The new economy as a key opportunity for close cooperation
w w w . b a n c o 1 . n e t
Main reasons for the partnership
The new economy as a key opportunity for close cooperation
Pioneering introduction of special services and use of leading edge technology:
Unibanco 30 Horas
Banco1
Investcenter
E-Card
Tradition in associations with large groups :
Credicard (Citi and Itaú)
Unibanco Seguros (AIG)
Fininvest (Icatu)
Banco1.net( PT )

8. The new economy as a key opportunity for close cooperation
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Main reasons for the partnership
The new economy as a key opportunity for close cooperation
Pioneering institution in the introduction of successful initiatives in the new economy :
ISP leader in Portugal [ Telepac ]
Portal leader in Portugal [ Sapo ]
Third largest Portal in Brazil [ Zip.net ]
Ambitious set of other B2C initiatives being launched (music, health, sport, etc.)

9. The new economy as a key opportunity for close cooperation
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Main reasons for the partnership
The new economy as a key opportunity for close cooperation
Development of WAP Portal
Leader in mobile telecommunication in Portugal and in Brazil (TMN, Telesp Celular).
Partnership with BES and CGD in Portugal in the E-bank market

10. Joint Winning Strategy Alliance of strong market presence
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Main reasons for the partnership
Joint Winning Strategy +
Retail Banking
Telephone Systems
Alliance of strong market presence
Customers +
Unibanco
Telesp Celular
Zip.net
Alliance of financial experience with in-depth knowledge of Telephone systems and Internet
Expertise
Capture the substantial opportunity for convergence of mobile and financial/payment services +
Mobile leadership
Leadership in mobile financial services
Integration with Mobiles

11. Telesp Celular - 3.1 MM e Zip Net - 3.1 MM
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Main reasons for the partnership
Value added
Customers
Telesp Celular MM e Zip Net MM
Unibanco :
Scale (4.3 MM clients)
Financial know how
Credibility
PT:
Internet know how
Expertise
Integration with Mobiles
PT :
WAP Technology

12. Main reasons for the partnership
A g e n d a
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Main reasons for the partnership
Principles and characteristics of the alliance
Banco1.net

13. General Principles of the Partnership Today
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Principles and characteristics of the alliance
General Principles of the Partnership Today
Creating value for both institutions beyond what each would create alone.
Commitment involving financial stakes and key persons from the management of each group in the Board of Directors of Banco1.net.
Nationwide scope

14. General Principles of the Partnership Today
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Principles and characteristics of the alliance
General Principles of the Partnership Today
Exclusive partnership, but open to new partners which can add value.
Commitment to the success of the partnerships.

15. w w w . b a n c o 1 . n e t
Principles and characteristics of the alliance
Ownership Structure
Investors
6.5%
62%
31.5%

16. Management Model of the Partnership Board of Directors of Banco 1.net
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Principles and characteristics of the alliance
Management Model of the Partnership
Board of Directors of Banco 1.net
To ensure that the Strategic Plan is in line with the short and long-term goals
To ensure that the resources are available to guarantee competitiveness
To promote new strategic partnerships

17. Members of the Board of Directors of Banco 1.net
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Principles and characteristics of the alliance
Management Model of the Partnership
Members of the Board of Directors of Banco 1.net
Unibanco´s Representatives:
Pedro Moreira Salles
Israel Vainboim
Joaquim Francisco de Castro Neto
Tomas Zinner
Marcos de Moraes
Portugal Telecom´s Representatives:
Eduardo Martins
Zeinal Bava

18. Main reasons for the partnership
A g e n d a
w w w . b a n c o 1 . n e t
Main reasons for the partnership
Principles and characteristics of the alliance
Banco1.net

19. Financial Services at Internet Users of Financial Services at Internet
B a n c o 1 . n e t
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Financial Services at Internet
Users of Financial Services at Internet
The number of users of Financial Services at Internet are growing exponentially
40%
35%
1998
30%
2000
25%
20%
2002
15%
10% 5% 0%
France
U.K
Scandinavian
Germany
Others - Europe
68%
86%
92%
109%
63%
CAGR: ( )
Source: Bain & Company

20. Financial Services at Internet
B a n c o 1 . n e t
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Financial Services at Internet
Although internet penetration in Brazil is only 4.5%, penetration of e-banking is approximately twice that in the largest retail banks. Banking is one of the industries where internet will revolutionize the competitive landscape.
Source: Bain & Company

21. Brazil: Internet Statistics [ IDC - E - Commerce Magazine ]
B a n c o 1 . n e t
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Brazil: Internet Statistics
Internet Users
6.9 M
Potential
17.0 M
In Source: Globo.com
Transactions
World
1999 US$ 130 Billion
2003 US$ Trillion
Brazil
2003 US$ Billion
[ IDC - E - Commerce Magazine ]

22. To be the first full-service E-BANK in the Brazilian market;
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B a n c o 1 . n e t
Objectives
To be the first full-service E-BANK in the Brazilian market;
To be the market leader in the E-BANK segment;
To be perceived as truly customer oriented.

23. B a n c o 1 . n e t “Current Situation ” 3-year Goals 70,000 customers
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Main Figures
“Current Situation ”
3-year Goals
70,000 customers
350,000 customers
750,000 associates
Markets: São Paulo and Rio de Janeiro
Markets: São Paulo, Rio de Janeiro, Belo Horizonte, Porto Alegre, Curitiba, Salvador, Recife and Brasília
Total Assets - R$ 90 million
Initial Investment -
R$ 36 million
Total Assets - R$ 400 million
Investment in marketing and technology R$ 150 million
Shareholders’ Equity -
R$ 60 million

24. E - bank Summary Description
B a n c o 1 . n e t
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Strategic Operation
E - bank
Summary Description
Vertical Financial Portal
Portal focusing on the Customer
Focus on consulting and advice for individuals
Use of fixed and mobile access
Financial Supermarket
Supplying products and services offered by Unibanco and other financial institutions
Presenting the best option for the Customer regardless of its brand

25. B a n c o 1 . n e t Competitors SPECIALIZED
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Competitors
SPECIALIZED
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w w w . i n v e s t . c o m
w w w . f i r s t - e . c o m
w w w . i g b a n c o . c o m . b r
DIFERENTIATED
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AUTOMATED

26. Competitive Advantages Customer´s Point-of-view
B a n c o 1 . n e t
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Competitive Advantages
Customer´s Point-of-view
“ Clicks and Mortar ”
Internet Player
Wider choice of banking products and services (financial supermarket)
Full range of banking products and services:
- Loans
- Financial services
- Credit Card / Insurance
Suggest the best, most impartial solution
Multichannel services (ATM´s, 30 Hours Branches, Banco 24 horas, POS etc)
Site/services adapted to the customer
Customized site and services
Lower tariffs and interest rates

27. Management Model and Administration Background
B a n c o 1 . n e t
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Management Model and Administration Background
Top Management with great experience in banking and start ups
Stock option to all management team
Empowerment and incentive for management participation

28. Positioning and brand name
B a n c o 1 . n e t
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Critical Factors
To be the first
Strategic Partners
Positioning and brand name
Execution, distribution, and customer service
Independent operation
Personalized service
Customer oriented