1. 1Q06 results Fabio Barbosa, CFO May 12, 2006 Companhia
Vale do Rio Doce

2. Disclaimer
”This presentation may contain statements that express management’s 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 CVRD’s actual results to differ from expectations reflected in forward-looking statements, please see CVRD’s reports filed with the Brazilian Comissão de Valores Mobiliários and the U.S. Securities and Exchange Commission.”

3. Agenda
Delivering strong performance
A benign environment

4. Delivering strong performance

5. Operational excellence
1Q06 production
records
Alumina 728 kt
Potash 185 kt
15.4% YoY
25.5% YoY

6. Operational excellence
million tons
Overcoming seasonality: for the first time, iron ore production in 1Q was larger than 4Q

7. Top-line growth of 49.9% yoy
Price contribution to 1Q06 revenue yoy growth: US$ 1,095 million in US$ million

8. Price was the main driver of yoy adjusted EBITDA increase
US$ million
Adjusted
EBITDA
volumes
prices
BRL
appreciation
dividends received
others
Adjusted
EBITDA
1Q05
1Q06

9. Cost pressures have eased despite further currency appreciation
US$ million
COGS
COGS
BRL
appreciation
volumes
prices
4Q05
1Q06

10. A winning streak of high operational and earnings performance
(1)

11. … and the fourth consecutive quarter of above US$ 1 billion earnings
US$ million

12. Sixteen consecutive quarters of adjusted EBITDA growth
LTM adjusted EBITDA(2) US$ billion
Composition
1Q06*
CAGR = 54.3%
* Excludes R&D

13. A powerful cash generation and a healthy balance sheet support capex financing and dividend distribution
March 31, March 31, 2006
Total debt (US$ billion)
Net debt(3) (US$ billion)
Total debt/LTM Adjusted EBITDA(4) (x)
LTM Adjusted EBITDA/LTM interest payment(5) (x)
Total debt/EV(6) (%)
Average debt life (yrs)

14. Alunorte 4 & 5 and Capim Branco I were concluded in 1Q06
Alunorte 4 & 5 and Capim Branco I were concluded in 1Q major projects delivered over the last four years
Average ROIC : 33.7%
São Luís
Mo I Rana
Capão Xavier
Taquari-Vassouras
Trombetas
Pier III PDM
Fábrica Nova
Capim Branco I
Alunorte 3
Sossego
Aimorés
Funil
Carajás70 Mtpa
Candonga
Alunorte 4&5

15. Strengthening competitiveness in the alumina business
Alunorte stages 4 & 5
Average capex cost per ton almost half of industry average for brownfield projects – US$ 412 x US$ 800 – despite very strong BRL.
Capacity increase to 4.4 Mtpy from 2.5 Mtpy.
Production growth. Mt Mt Mt

16. Sources of electric energy supply
Saving energy costs
Sources of electric energy supply
2003
2005
¹ co-generation and self-generation

17. A benign environment

18. LME metals index – LMEX number of months
Current expansion cycle is the longest since 1970, and there is support for its continuation
LME metals index – LMEX number of months 37 16 20 50 28 15 26 38 58 15 50 18 13 54
Sources: LME and CVRD

19. Global economic expansion: the fourth consecutive year of above 4% growth
global GDP growth %
Sources: IMF and CVRD

20. Accelerated Chinese economic growth remains on track and is expected to continue
China’s GDP growth
1Q06 = 10.2%
Sources: CEIC and CVRD

21. A more dynamic domestic steel industry will leave less room to Indian iron ore exports to grow
CAGR : 9.4%
CAGR : 6.1%
Source: IISI

22. Mfg industry: flying on all engines
In the short term, leading indicators project strong and more balanced global IP growth
Mfg industry: flying on all engines
Sources: JPMorgan and Institute for Supply Management

23. CRU Steel Price Index April 1994 = 100
In line with the global inventory cycle, steel prices are recovering across the world
CRU Steel Price Index April 1994 = 100
Source: CRU

24. Chinese FAI continues to grow at a steady pace, supporting strong steel consumption growth
Source: CEIC

25. Chinese iron ore imports growing fast
All-time high
1Q06 YoY= 28.0%
Source: CEIC

26. iron ore inventories/monthly pig iron production
Chinese iron ore inventories on a downward trend
iron ore inventories/monthly pig iron production
1.46
1.05
Sources: IISI and Chinica Shipbrokers Ltd.

27. Spot iron ore prices remain above benchmark prices
77.04
58.78
Souces: Mysteel, Clarkson and CVRD

28. Fund buying and faster IP growth fueled a reaction in aluminum prices
Fund buying and faster IP growth fueled a reaction in aluminum prices. Market is expected to remain in deficit in 2006/2007
Source: CEIC

29. Due to announcements of capacity increases in China, spot prices softened a little. However, market is expected to stay in deficit, supporting high price levels
Source: CEIC

30. Fund buying, resumption of global demand growth and continuing supply disruptions drove copper prices to unprecedented levels. Copper concentrates and refined copper are both expected to remain in deficit
Source: CEIC

31. CVRD – A global leader

32. Appendix
Reconciliation of non-GAAP information and comparable GAAP information
(1) adjusted EBIT (US$ million)  1Q05 4Q05 1Q06
Net operating revenues 2,213 3,598 3,340
COGS (1,247) (1,829) (1,695)
SG&A (113) (175) (168)
Research & development (34) (85) (71)
Other operating expenses (24) (48) (70)
Adjusted EBIT 795 1,461 1,336
Adjusted EBIT margin (%)
(2) adjusted EBITDA (US$ million)
reconciliation between adjusted EBITDA vs. operating cash flow
    1Q05 4Q05 1Q06
Operating cash flow ,
Income tax
Monetary and foreign exchange losses (25) (69) 32
Financial expenses
Net working capital
Others (102)
Adjusted EBITDA ,780 1,629

33. Appendix
Reconciliation of non-GAAP information and comparable GAAP information
(3) Net debt RECONCILIATION BETWEEN GROSS DEBT AND NET DEBT
  1Q05 4Q05 1Q06
Gross debt 4,182 5,010 6,063
Cash and cash equivalents 1,122 1,041 1,644
Net debt 3,060 3,969 4,419
(4) Total debt / Adjusted LTM Ebitda 1Q05 4Q05 1Q06
Total debt / Adjusted LTM Ebitda (x)
Total debt / LTM operational cash flow(x)
(5) Adjusted LTM Ebitda / LTM interest payments 1Q05 4Q05 1Q06
Adjusted LTM Ebitda / LTM interest payment (x)  
LTM operational profit / LTM interest payments (x)  
(6) Total debt / Enterprise value 1Q05 4Q05 1Q06
Total debt / EV (x)
Total debt / total assets (x)
Entreprise value = Market capitalization + Net debt