Ownership StructureOwnership StructureItaú manages its corporate structure in a way thatmakes the best use of its capital amongst the variousoperating segments of the company, attempting tomitigate possible inefficiencies associated with theorganization of the companies. The abridgedorganization chart of Itaú's structure is shown below.Outstanding Preferred Shares (in thousand) 50,902 51,857 52,578,207Outstanding Common Shares (in thousand) 60,498 60,596 60,672,014Preferred Shares in Treasury (in thousand) 1,795 3,041 2,319,581Common Shares in Treasury (in thousand) 98 2 15,539NB: On 10/20/04, a reverse split of shares was carried out.As of September 30, 2005, treasury preference sharesrepresented 76.8% of total options yet to be exercisedby management. Note 16 to the Financial Statementsincludes information and details of the averageacquisition cost of treasury shares, as well as changesin the options granted to group executives under the"Plan for Granting Stock Options".Família E.S.A60.14% Common Shares33.50% TOTALFree Float39.86% Common Shares82.84% Preferred SharesItaúsa88.34% Common Shares47.98% TOTALFree Float11.66% Common Shares99.99% Preferred SharesBanco ItaúHoldingFinanceira S.A.89.84% Common Shares89.84% TOTAL100.00% Common Shares100.00% TOTALBanco ItaúBanco Itaú BBA50.00% Common Shares95.75% TOTALBanco ItaúEuropa19.53% Common Shares19.53% TOTALItaú Corretorade Valores99.99% Common Shares99.99% TOTALOrbitall99.99% Common Shares99.99% TOTALItaucardFinanceira99.99% Common Shares99.99% TOTALItaú Banco deInvestimento99.99% Common Shares99.99% TOTALItaú Bank100.00% Common Shares100.00% TOTALBanco ItaúBuen Ayre100.00% Common Shares100.00% TOTALCia. Itauleasing99.99% Common Shares99.99% TOTALCredicard50.00% Common Shares50.00% TOTALBanco Fiat99.99% Common Shares99.99% TOTALBanco Itaucred100.00% Common Shares99.99% TOTALFinanceiraItaú CBD50.00% Common Shares50.00% TOTALFinanceiraAmericanasItaú(*)50.00% ON50.00% TOTALItaúCapitalizaçãoItaú SegurosItaú Vida ePrevidência99.99% Common Shares99.99% TOTAL100.00% Common Shares100.00% TOTAL100.00% Common Shares100.00% TOTALNote: The percentage above refers to the total of direct and indirect participation.(*) Subject to Central Bank approval.48 <strong>Management</strong> <strong>Discussion</strong> and <strong>Analysis</strong>Banco Itaú Holding Financeira S.A.
Performance in the Stock MarketAt September 30, 2005, Itaú Holding's preferred stock (ITAU4)was quoted at R$ 532.50 per share, with an appreciation of23.3% in relation to the prior quarter. ADRs traded on the NewYork Stock Exchange were quoted at US$ 118.66, with anappreciation of 28.3% compared to the second quarter of 2005.Market capitalization reached R$ 59,321 million inSeptember, corresponding to a 22.1% increase on thesecond quarter of 2005.Performance in the Stock Market (*)Maximum in 30 days 544.00Minimum in 30 days 489.90Variation (%) 11.0%Maximum in 52 weeks 544.00Minimum in 52 weeks 310.00Variation (%) 75.5%Price 532.50(*) Determined on the basis of closing quotations.Payment/Provisioning of Interest on Own Capital(*)R$ MillionAccumulated: 680 Accumulated: 858 Accumulated: 1,3183021762024272392641Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05(*) Gross Amount.From January through September 2005, the amount of intereston own capital totaled R$ 1,318 million on the Net Income ofR$ 3,827 million recorded in the period. The amount of Intereston Own Capital represents a 54% increase on the accumulatedfigure from January through September 2004.Important Events"Split of Shares"In order to increase the liquidity of Itaú's shares and adjust theirquotation to market value, the General Shareholders' Meetingheld on August 22, 2005 approved a split of the bank shares, inthe proportion of 9 new shares for each preferred and commonshare outstanding on the São Paulo Stock Exchange (Bovespa),as from October 3, without altering the participation ofindividual shareholders. To provide for the parity of 1 ADR to 1preferred share, 4 new ADRs were distributed for each ADRoutstanding on the New York Stock Exchange (NYSE) onOctober 6, 2005.Number of shares outstanding 111,400,403 1,114,004,030Quotation of preferred share (R$/share) 532.50 53.25Quotation of common share (R$/share) 500.00 50.00Quotation of ADRs (US$/share) 118.66 23.73Book Value (R$/share) 136.71 13.67355(*) On the basis of closing quotations on September 30, 2005.514R$346 351621The new shares, which started to trade on the Brazilianmarket on October 3, 2005, are entitled to 100% of thedistributions declared as from September 30, 2005,including monthly interest on own capital to be paid onNovember 1, 2005, in the adjusted amount of R$ 0.021 pershare, with a 15% withholding tax."Apimec Public Company Award"The Apimec (Brazilian Association of Analysts andInvestment Professionals in the Capital Market) PublicCompany Award, created 31 years ago, is the mosttraditional recognition provided to this type of companyin Brazil. The Award, granted following a direct election byApimec members throughout Brazil, is intended to rewardthose companies which stand out, among other aspects,due to the regularity and quality of their market relations,management quality, transparent disclosure of financialinformation, and shareholder remuneration policy. Itaúwas also granted this award in 1999 and 2001."Recognitions - Third Quarter of 2005"- Best CEO (Roberto Setubal) and Best CFO (Henri Penchas)of Latin American Financial Institutions - sell-side ranking(no buy-side ranking exists for this category) - InstitutionalInvestor magazine- Best Investor Relations in Latin American FinancialInstitutions - buy-side and sell-side rankings- InstitutionalInvestor magazine- Best Corporate Governance in Latin American FinancialInstitutions - Institutional Investor magazine- e-Finance Award 2005 - Best Investor Relations Website inBrazil - Executivos Financeiros magazine- Best Financial Institution in Brazil - Istoé Dinheiro magazine- The World´s Best Banks 2005 Award - Best Brazilian Bank -Global Finance magazine (October 2005)Performance CultureThe higher market capitalization, the significant increasein the liquidity of our stock, and the launch of differentiatedproducts and services for the capital market, among otherinitiatives, reflect the enhancement of Itaú Holding'sPerformance Culture, which aims at creating value for ourstockholders and focuses on sustained profitability. As aresult of this strategic long-term vision of the PerformanceCulture, in the past seven years, the return on stockholders'equity has remained above 26%.Evolution of ROE (*) in (%)12.511.115.417.218.931.694 95 96 97 98 99 00 01 02 03 04 9m/05(*) Annualized Return on Stockholders´ Equity.27.731.526.3 26.5 27.034.849 <strong>Management</strong> <strong>Discussion</strong> and <strong>Analysis</strong>Banco Itaú Holding Financeira S.A.