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
Highlights
Outlook
The quest for transparency

4. Highlights
A solid performance in a dysfunctional global economy - Net earnings: US$ 354 million, EBITDA: US$ 442 million.
Weather problems reduced iron ore shipments in 1Q03 versus 4Q02.
However, we are operating at full capacity and buying above average volumes of iron ore from third parties to meet customers demand.
Good performance of alumina, manganese & ferro alloys, kaolin and logistics services sales.
Potash sales growth limited by capacity.
Decreasing gold sales due to reserves depletion.
Growth projects on schedule.

5. Quarterly earnings volatility influenced by currency volatility

6. A new methodology to estimate EBITDA figures.
US$ million
1Q02 2Q02 3Q02 4Q02 1Q03
Operating income
Depreciation, Amortization and Depletion
Dividends Received
Asset Impairment
Adjustment for non-recurring items
EBITDA - New methodology
EBITDA - Previous methodology

7. Iron ore and pellet shipments constrained by mining and logistics capacity
million tons
44.0
42.3
42.5
41.1
38.3
38.0
38.0
36.7
34.4

8. CVRD Railroads - General Cargo Transportation
Asset integration, new services and contracts to manage clients logistics are boosting CVRD sales growth.
CVRD Railroads - General Cargo Transportation
million ntk
6,137
5,908
5,856
5,669
5,622
5,505
5,207
5,233
4,961

9. Vitória a Minas Railroad million ntk per active loco per day
Railroad productivity is improving and reliability is the best in the world.
Vitória a Minas Railroad million ntk per active loco per day
Carajás Railroad World record in MKBF - mean kilometers between failure million km

10. A challenging business environment
Global GDP growth is below its long term trend for the third consecutive year and the industrial world is flirting with deflation. %
3.6
Source: IMF and MSDW Research

11. A challenging business environment
China is the sunspot in a gloomy world economy and it is where demand for iron ore exploded.
SARS is likely to cause slower GDP growth in 2Q03/3Q03. However, we do not expect the Chinese economy to stall.
Up to now there are no signs of deceleration in iron ore demand growth.

12. CVRD and the Brazilian Real (BRL)
The appreciation of the BRL has a limited negative impact on CVRD USD cash flow. Iron ore prices have a more powerful effect.
In the current environment the flipside of a stronger BRL is a lower capital cost.

13. Freight behavior signals a global excess demand for iron ore.
Brazil-Japan and Australia-Japan freight rates differential.
iron ore price increase
2-digit
iron ore price increase
iron ore price increase
2-digit
iron ore price decrease
Source: Clarksons

14. Iron ore prospects
We estimate global seaborne demand for iron ore to be 510 million tons in It is unlikely to be met by suppliers.
We believe that the iron ore shortage will remain throughout 2003/2004.

15. Iron ore prospects
We expect a modest increase in CVRD shipments in 2003/2004 due to capacity constraints in mining and logistics.
Purchases of iron ore from third parties will continue and are likely to peak in 2004.
Iron ore purchases are needed to meet commitments. They put pressure on margins but contribute to marginal increases in ROIC.
Purchases play the role of a “swing producer”.

16. Iron ore prospects
We are investing in additional mining capacity and elimination of logistics bottlenecks.
Mining projects:
Southern System - Fabrica Nova, Brucutu.
Northern System - Carajás N5.
Logistics projects:
Ponta da Madeira maritime terminal - Pier III.
Tubarão Port.

17. Debottlenecking iron ore logistics
Ponta da Madeira maritime terminal - Pier III is scheduled to start up in 1Q04.

18. Alumina prices surged and Alunorte stage 3 is allowing CVRD to benefit from the new price scenario.
Source: CRU

19. Alumina prices are expected to stay high for the next 18 months.
Alumina Market Surplus or (Deficit)
Sources: CRU - January 2003

20. Aluminum Market Surplus or (Deficit)
There is excess supply of aluminum and large inventories. However, high alumina prices and power shortages are likely to constrain supply and to mitigate downward price pressure.
Aluminum Market Surplus or (Deficit)
Sources: CRU - January 2003

21. Logistics services
An all time high grain crop and new contracts brighten the short term outlook.
The acquisition of new locos and wagons will allow us to realize market opportunities.

22. The quest for transparency
Investment in ERP System.
Implementation of Hyperion.
Quarterly financial statements reviewed by independent accountants.
New methodology to compute EBITDA (non-GAAP).
Changes in internal process.
Compliance with regulation G.

23. CVRD - The Best of Brazil