1. Companhia
Vale do Rio Doce
Pursuing long-term
value growth
Dublin, May 2007
1

2. Disclaimer
”This
”This presentation
presentation may
may contain
contain statements that
that express
statements express
management’s expectations about future events or results rather than
management’s expectations about future events or results rather than
historical facts. These forward-looking statements involve risks and
historical facts. These forward-looking statements involve risks and
uncertainties that could cause actual results to differ materially from
uncertainties that could cause actual results to differ materially from
those projected in forward-looking statements, and CVRD cannot give
those projected in forward-looking statements, and CVRD cannot give
assurance that such statements will prove correct. These risks and
assurance that such statements will prove correct. These risks and
uncertainties include factors: relating to the Brazilian and Canadian
uncertainties include factors: relating to the Brazilian and Canadian
economies and securities markets, which exhibit volatility and can be
economies and securities markets, which exhibit volatility and can be
adversely affected by developments in other countries; relating to the
adversely affected by developments in other countries; relating to the
iron ore and nickel businesses and their dependence on the global
iron ore and nickel businesses and their dependence on the global
steel industry, which is cyclical in nature; and relating to the highly
steel industry, which is cyclical in nature; and relating to the highly
competitive industries in which CVRD operates. For additional
competitive industries in which CVRD operates. For additional
information on factors that could cause CVRD’s actual results to differ
information on factors that could cause CVRD’s actual results to differ
from expectations reflected in forward-looking statements, please see
from expectations reflected in forward-looking statements, please see
CVRD’s reports filed with the Brazilian Comissão de Valores Mobiliários
CVRD’s reports filed with the Brazilian Comissão de Valores Mobiliários
and the U.S. Securities and Exchange Commission.”
and the U.S. Securities and Exchange Commission.”
2

3. Agenda
A multilane road to value
creation
Continuous improvement
Growth outlook remains strong
3

4. A multilane road to value creation
4

5. Over the last years we delivered 20 major
projects creating new platforms of value
creation Carajás
100 Mtpa
Capão Taquari-
São Luís Mo I Rana Brucutu
Xavier Vassouras
Pier III Fábrica Capim
Trombetas
PDM Nova Branco I
1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07
1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07
Carajás
85 Mtpa
Alunorte 3 Sossego Aimorés
Alunorte
4&5
Carajás
Funil Candonga
Capim
70 Mtpa
Branco II
Paragominas
5

6. Portfolio management has been an
important source of value creation
2000-2006
Acquisitions: US$ 25.4 billion
Growth
Consolidation
plataform in
of iron ore Becoming a
coal
leadership global leader
in nickel
Divestitures of non-core assets
US$ 3.6 billion
- Unlocking value
- Improving capital allocation
6

7. Coal, our newest growth platform
Investment in coal is consistent with our growth and
growth and
diversification strategy, supported by a strong long-term
diversification strategy, supported by a strong long-term
outlook on coking and thermal coal
coking and thermal coal
Acquisition of AMCI Australia for US$ 656 million provides
ongoing operations, experience in coal mining & marketing
mining & marketing
and diversification into one of the best geographies
diversification into one of the best geographies
Projects
Projects
– Moatize, Mozambique – to be approved
– Moatize, Mozambique – to be approved
– Belvedere, Australia – pre-feasibility
– Belvedere, Australia – pre-feasibility
JVs
– Longyu, China – anthracite coal
– Longyu, China – anthracite coal
– Yankuang, China – coke & coking coal
– Yankuang, China – coke & coking coal
7

8. Redefining market boundaries in
iron ore
We intend to become a player in the Chinese domestic market
to become a player
focusing on a new customer segment
Our strategy is supported by:
A massive increase in iron ore capacity to 450 million mtpy
in 2011 from 300 million in 2007, to meet the rising
meet the rising
demand from current clients and the new segment
the new segment
Distribution centers and blending capacity at Chinese ports
Distribution centers and blending
A dedicated Brazil-China shuttle line serviced by very large
line serviced by very large
ore carriers under long-term contracts of afreightment,
which will contribute to reduce average level and volatility
of freight rates
8

9. Continuing to develop options for
profitable growth
An all-time high capex budget (revised) of US$
7.4 billion for 2007
US$ 5.4 billion allocated to organic growth
US$ 4.9 billion allocated to projects
9

10. An exciting project portfolio is under
development
Iron ore & pellets
Carajás
Fazendão Bauxite & Alumina
Itabiritos Paragominas II
Samarco Alunorte 6 & 7
Nickel
Onça Puma
Goro Copper
Vermelho 118
Voisey’s Bay Salobo I Coal
Moatize
10

11. A new execution strategy was developed
for Goro
Focus on risk management of political,
environmental, technological and operational
factors
CVRD´s proactive relationship with communities
and pollution control technology transferred to
Goro
Key technical parameters resetted to reduce risks
A new team with a focus on discipline on execution
11

12. Goro is a long-term growth platform
One of the best nickel deposits in the world:
120 million metric tons of P&P reserves @
1.48% Ni, 0.11% Co
Strategic positioning to meet Asian demand
growth
Low cost incremental production of nickel
Capex of US$ 3.2 billion. Estimated production
of 60,000 mtpy of nickel and 4,600 mtpy of
cobalt to be commissioned in 4Q08
12

13. The pursuit of discipline in capital
allocation pays off: pre-tax ROIC stays
above 50% Return on capital invested
Return on capital invested
1
1
35.8
Capital invested (US$ billion) 35.8
Capital invested (US$ billion)
64.4%
64.4%
2
31.2
2
31.2
ROIC (%)
ROIC (%)
54.7% 54.3%
54.7% 54.3% 53.4%
53.4%
46.8%
46.8%
11.1
11.1
7.5
7.5
5.4
5.4
3
3 3
1T07 3
3
2003 2004 2005 2006
2003 2004 2005 2006 1T07
¹ PP&E + working capital + R&D
¹ PP&E + working capital + R&D
2 before income taxes
2 before income taxes
13 3 excludes effect of extraordinary inventory adjustments
3 excludes effect of extraordinary inventory adjustments

14. As a consequence we became the world’s
second largest metals & mining
company…
TSR 2001-06, 42.7% p.a.
Dec 31, 2001 May 4, 2007
Dec 31, 2001 May 4, 2007
160
40 160
40
BHPB
BHPB
150
150
US$ 101.2 billion
US$ 101.2 billion
140
140
ALCOA
ALCOA
RIO TINTO
RIO TINTO
BHPB
BHPB
130
130
30 120
30 120
RIO TINTO
CVRD
RIO TINTO
CVRD
110
110
ANGLO
ANGLO
ANGLO
US$ 9.2 billion
ANGLO
US$ 9.2 billion 100
100
90
90
80
XSTRATA
20 80
XSTRATA
20
70
70
AMPLATS
AMPLATS
NORILSK
NORILSK
60
BARRICK
ALCAN
60
BARRICK
ALCAN
FREEPORT
FREEPORT
AMPLATS
AMPLATS
BARRICK
CVRD
BARRICK
ANGLOGOLD
CVRD
ALCOA
ANGLOGOLD
50
ALCOA
50
NEWMONT
NEWMONT
40
10 40
10
30
30
20
20
10
10
0
0 0
0
14

15. … with a global base of world-class assets
Asset base Asset portfolio
by geography
Iron ore &
Iron ore &
pellets
pellets
RoW
RoW
Australia
Australia 3%
3% Manganese
Manganese
Nickel
Nickel
2% &
2% &
ferroalloys
ferroalloys
Europe
Europe
3%
3% Brazil
Brazil
Bauxite,
Bauxite,
60%
60%
Asia
Asia alumina &
alumina &
CVRD
Coal CVRD
Coal
5% aluminum
5% aluminum
Potash &
Potash &
Copper
Copper
kaolin
kaolin
North America
North America
27%
27% Logistics
Logistics
15

16. … and a global footprint
16

17. Continuous improvement
17

18. Record year to date sales underpinned by
strong demand growth
1Q Records
YoY
000´metric tons YoY
1Q07 change
1Q07
Iron ore 58,626 1.1%
Iron ore 58,626 1.1%
Pellets 7,939 34.7%
Pellets
Finished nickel 71 10.8%
Finished nickel 71 10.8%
Copper 66 28.8%
Copper 66 28.8%
Alumina 700 38.9%
Alumina 700 38.9%
Aluminum 134 19.6%
Aluminum 134 19.6%
Potash 161 56.3%
Potash 161 56.3%
Cobalt (tons) 580 19.3%
Cobalt (tons) 580 19.3%
Railroad cargo¹ 6,035 4.4%
Railroad cargo¹ 6,035 4.4%
1
1 general
general cargo transportation measured in net ton kilometers (ntk)
cargo transportation measured in net ton kilometers (ntk)
18

19. High performance leveraged by asset
portfolio diversification
Adjusted EBIT margin
2005 2006¹ 1Q07²
Ferrous minerals 49.7% 47.3% 50.9%
Non-ferrous minerals 23.7% 47.3% 52.2%
Aluminum 31.7% 39.5% 39.1%
Logistics 22.4% 28.9% 28.3%
Total 42.5% 43.7% 49.2%
1
1 pro
pro forma and excluding extraordinary effect of inventory adjustment
forma and excluding extraordinary effect of inventory adjustment
² excluding extraordinary effect of inventory adjustment
² excluding extraordinary effect of inventory adjustment
19

20. Net earnings remain on a strong upward
trend for the fifth year
LTM net earnings
8.8
8.8
US$ billion
7.1
7.1
6.2
6.2
5.6
5.6
5.3
5.3
4.8
4.8
4.4
4.4
4.0
4.0
2.9
2.9
2.6
2.6
2.1
2.1
1.8
1.8 1.6
1.6 1.6
1.5 1.6
1.5
1.2
1.2
0.8
0.8
1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06¹ 1Q07¹
1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06¹ 1Q07¹
¹ excluding
excluding extraordinary effect of inventory adjustment
extraordinary effect of inventory adjustment
¹
20

21. Twenty consecutive quarters of EBITDA
growth
Composition
LTM adjusted EBITDA
1Q071
US$ billion 12.5
12.5
Ferrous minerals
Ferrous minerals
Logistics
Logistics
42.8%
42.8%
2.9%
2.9%
10.1
10.1
Aluminum
Aluminum
8.3
8.3
7.1%
7.1%
7.2 7.3
7.2 7.3
6.5
6.5
5.8
5.8
Non-ferrous
Non-ferrous
5.0
5.0
minerals
minerals
47.1%
47.1%
4.0
4.0
3.7
3.7
3.3
3.3
2.9
2.9
2.4
2.4
2.1
2.1
1.8 1.8 1.9 2.0
1.9 2.0
1.5 1.6 1.7 1.8 1.8
1.5 1.6 1.7
1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06¹ 1Q07¹
1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06¹ 1Q07¹
1 excluding extraordinary effect of inventory adjustment
1 excluding extraordinary effect of inventory adjustment
21

22. One of our priorities: a battle against
rising costs. Winning another round
US$ million
US$ million
Adjusted COGS1 variation
74
74 (73)
(73)
(72)
(72)
3,091
3,091
3,020
3,020
ER change Volume
Cost reduction
4Q06 1Q07
1 COGS less depreciation charges,, excluding inventory adjustment
1 COGS less depreciation charges excluding inventory adjustment
22

23. Growth outlook remains strong
23

24. The global economy remains on track for
continued robust growth in 2007/2008
Global GDP growth
5.4%
5.4%
5.3%
5.3%
4.9%
4.9%
4.8%
4.8%
4.5% 4.5%
4.5% 4.5%
4.2%
4.2%
4.1%
4.1% 4.0%
4.0%
3.7%
3.6% 3.7%
3.6%
3.1%
3.1%
2.8%
2.8%
2.5%
2.5%
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007E 2008E
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007E 2008E
Source: IMF and CVRD
Source: IMF and CVRD
24

25. We revised our medium-term forecast for
iron ore seaborne demand: a stronger
growth is expected
Global seaborne demand
million metric tons
million metric tons
1,010
1,010
China RoW
China RoW
790
790
725
725
670
670 465
603 465
603
537
537
452 484
452 484 410
410
405
405
400
400
395
395
389
389
372
372
360 545
360 545
380
380
320
320
270
270
208
208
148
148
112
92 112
92
2001 2002 2003 2004 2005 2006 2007E 2011E
2001 2002 2003 2004 2005 2006 2007E 2011E
World China RoW
CAGR 2001-06 9.9% 28.3% 2.4%
CAGR 2006-11E 6.9% 11.2% 2.8%
25

26. There is a structural change in nickel
supply
Current production depends on nickel sulphide
deposits => lower costs, well known technology
Production expansion is dependent on nickel
laterites => higher cost, technological and
operational challenges
New projects ramping up only in 2009-2011
26

27. Medium term view of nickel demand
China will drive global stainless steel production increase
with India also growing fast
also growing fast
Solid demand growth from aerospace, energy
demand growth from aerospace, energy
Substitution of high Ni steels (300 series) to less Ni content
Substitution of high Ni steels (300 series) to less Ni content
(200 series) or no Ni (400 series) limited by technology,
series) or no Ni (400 series) limited by technology,
costs of substitutes and costs for consumers to change
costs for consumers to change
specifications and production equipment
equipment
NiCr pig iron production increase lessens incentives to
NiCr pig iron
substitution but also faces several challenges: costs, quality,
challenges: costs, quality,
high energy consumption and environmental problems
and environmental problems
27

28. We are increasing production to meet
demand growth from our clients
Production
2006 2007E ∆%
Iron ore 264Mt 300Mt 13.6
Nickel¹ 251kt 287kt 14.3
Alumina 3.9Mt 4.4Mt 12.8
Aluminum 550kt 550kt -
Copper 267kt 297kt 11.2
¹ includes volumes produced based on nickel concentrates purchased from third parties and
¹ includes volumes produced based on nickel concentrates purchased from third parties and
processed under toll smelting and refining arrangements.
28 processed under toll smelting and refining arrangements.

29. CVRD – A global leader
www.cvrd.com.br
e-mail: rio@cvrd.com.br
29