Slide sem ttulo

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Companhia Vale do Rio Doce
UBS Warburg Global Basic Materials Conference
London May 2002
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Disclaimer
This presentation may contain statements that
express managements expectations about future
events or results rather than historical facts.
These forward-looking statements involve risks
and uncertainties that could cause actual results
to differ materially from those projected in
forward-looking statements, and CVRD cannot give
assurance that such statements will prove
correct. These risks and uncertainties include
factors relating to the Brazilian economy and
securities markets, which exhibit volatility and
can be adversely affected by developments in
other countries relating to the iron ore
business and its dependence on the global steel
industry, which is cyclical in nature and
relating to the highly competitive industries in
which CVRD operates. For additional information
on factors that could cause CVRDs actual results
to differ from expectations reflected in
forward-looking statements, please see CVRDs
reports filed with the Brazilian Comissão de
Valores Mobiliários and the U.S. Securities and
Exchange Commission.
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The Largest Diversified Mining Company of the
Americas
Iron Ore and Pellets
Railroads and Ports
Aluminum Bauxite, Alumina and Aluminum
Manganese and Ferro-alloys
Steel
Copper and Gold
Industrial Minerals Kaolin and Potash
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Shareholding Structure

• Incorporated in 1942, privatized in 1997
• Listed at BOVESPA, NYSE and LATIBEX
• ADR Level II - Launched in June 2000
• ADR Level III - Launched in March 2002, US 1.9
  billion equity offer

April 2002
Total Capital
Free Float
Valepar - Principal Shareholder 27.5
Brazilian Investors 30.7
Free Float 58.6
National Treasury 1.3
Investvale 2.7
BNDESPar 3.4
69.3 Foreign Investors
Golden Share National Treasury (one share)
Litel Participações S.A 6.6
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Mining is CVRDs Core Business
Gross Operating Revenues by Product - 2001 US
4,132 million
EBITDA by Business Area - 2001 US 1,772 million
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Global Market Leadership in Iron Ore
estimated market size in 2001 450 million tons
Iron Ore Seaborne Trade
Source CVRD
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Global Iron Ore Market is Very Stable
No excess supply
million tons
Capacity Utilization will remain at a high level.
Capacity Utilization
Demand
Supply
Source CVRD
Iron Ore Seaborne Market
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Iron Ore - Low Price Volatility
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Leveraged to the Global Economy
Gross Operating Revenues by Market
2001 US 4,132 million
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CVRD has a Natural Hedge against the Brazilian
Currency Weakness
Share price highly correlated with the USD/BRL
exchange rate
Cash flow assymmetry
84 of REVENUES and less than 30 of COSTS are
USD-linked
CVRD/ Ibovespa
USD / BRL
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Strong and Steady Cash Flow
US million
EBITDA
EBITDA / Sales
US GAAP
CAGR 13.3
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Strong Cash Flow Supports Growth Initiatives
US GAAP
EBITDA / CAPEX
CAPEX
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Strategy a Global Mining Company Aiming to
Create Shareholder Value

• Maintain market leadership in iron ore
• Expand pelletizing capacity
• Develop existing portfolio of copper projects
• Expand resource base through exploration
• Opportunistic acquisitions, joint-venture
  investments
• Increase bauxite and alumina production capacity
• Expand resource base through exploration
• Opportunistic acquisitions, joint-venture
  investments
• Maximize asset utilization
• Logistics service provider
• Selective investments in hydroelectric generation
  assets
• Generation capacity as a hedge against price and
  supply volatility

Iron Ore
Copper
Aluminum
Logistics
Power
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Project Pipeline
Tubarão Pellets
Brownfield Projects
Iron Ore and Pellets
São Luís Pellets
Greenfield Projects
Samarco Pellets
Alunorte Alumina
MRN Bauxite
Aluminum
Copper
Sossego
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Cristalino
Alemão
Salobo
Industrial Minerals
Taquari Vassouras Potash
PPSA Phase 4 Kaolin
PPSA Phase 3 Kaolin
Tubarão Fertilizer Warehouse
Ponta da Madeira Pier III
Praia Mole Maritime Terminal Phase II
Logistics
Praia Mole Maritime Terminal Phase I
Grain Terminals
Hydroelectric Power Plants
Candonga
Capim Branco I
Capim Branco II
Foz do Chapecó
Santa Isabel
Funil
Aimorés

• Organic growth
• Opportunistic acquisitions

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Recent Strategic Associations and Alliances

• Baosteel Iron Ore
• Codelco Copper
• Nucor Metallics

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Investment Appeal

• A clearly defined long term strategy
• Global market leadership in iron ore
• World class mining assets capable of producing
  above average markets returns
• Leadership in the high growth potential Brazilian
  logistics market
• Availability of profitable organic growth
  opportunities
• Strong and stable cash flow generation

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Long Term Objective

• Strategic plan is to position CVRD among the
  large consolidated global mining players

• Project base supports EBITDA/VALUE CREATION
• Market multiple still low compared to peers -
  additional room for value recognition

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Companhia Vale do Rio Doce
CVRD - The Best of Brazil
www.cvrd.com.br e-mail rio_at_cvrd.com.br