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
Delivering profitable growth
A good business outlook is supported by the long cycle

4. Highlights

5. Highlights An outstanding performance.
Fundamentals better than they have been in many years. Current cycle is one of the strongest since late 19th century.
Good strategy execution is allowing us to explore growth opportunities wisely.
Disciplined capital management creates highly competitive growth platforms and high return on invested capital.
Powerful cash flow and good financial policy generate a healthier balance sheet.

6. Delivering profitable growth

7. Sales in a strong growth path
An all-time high revenue, US$ 2.3 billion, with qoq growth (12.5%) mostly driven by larger volumes (71%).
In 000’ tons a
million of ntk

8. 9M04 Gross Revenues: US$ 6.051 billion
Ferrous minerals accounted for 69% of revenues. China is an important growth driver, but accounts for only 11% of revenues
9M04 Gross Revenues: US$ billion
By product
By geography

9. Iron ore and pellets shipments reached an all-time high in 3Q04
million tons
116.7
60.4
55.9
55.6
148.7
52.9
46.6
42.5
164.2
41.5
186.2
130.6
169.2
CAGR 00-04E = 9.7%

10. CVRD railroads transported a record volume of general cargo for clients
Billion of ntk
CAGR 00-04E = 9.8%

11. Adjusted EBIT reaches a new quarterly record

12. Operational excellence across-the-board
adjusted EBIT margin by business area

13. Market Cap as of September 30, 2004 US$ billion
An outstanding earnings performance among main metals and mining companies reporting quarterly
Market Cap as of September 30, US$ billion
3Q04 Net Earnings US$ million
Source: Bloomberg LP and company reports

14. To stay at the lowest end of the industry cost curve is key to weather the downcycle and to leverage the upcycle
Net earnings
US$ million

15. LTM adjusted(2) EBITDA US$ billion
Despite the BRL appreciation against the USD, quarterly cash generation hits the one billion dollar mark. Ten quarters of consecutive growth
LTM adjusted(2) EBITDA US$ billion

16. Sources of cash generation
Investments are changing CVRD profile: cash flow became much more powerful and generated from a more diversified set of sources
Sources of cash generation
1Q02 Adjusted EBITDA
3Q04 Adjusted EBITDA
US$ 397 million
US$ billion

17. Capex reached US$ 1.27 billion in the first nine months of 2004, with four major projects delivered
CAPEX 9M04
US$ billion
Main projects
delivered
Pier III PDM
Carajás 70 Mt
Candonga
Sossego
Growth capex
US$ 798 million
On track
Fabrica Nova I
Carajás 85 Mt
Brucutu I
Fazendão
Itabira
Alunorte 4&5
Paragominas I
Taquari-Vassouras
Aimorés
Capim Branco I&II
Stay-in-business
capex
US$ 472 million

18. Return on invested capital
Capital allocation discipline and good strategy execution spearheaded constantly high performance
Return on invested capital a
Annualized

19. Powerful cash generation allows CVRD to finance growth initiatives and to meet shareholders’ dividend expectations
2004 dividend
US$ 0.68 per share
Dividend growth
2004/ %
2003/ %

20. Balance sheet is improving continuously

21. A good business outlook is
supported by the long cycle

22. After growing at 5% per year, a 30-year high, global economy recovery reached a mature stage
Global PMI
Source: JPMorgan

23. We expect global GDP growth rate to stay above long-term trend in the near future%
CAGR = 3.6%
Source: IMF and CVRD

24. Some indicators are signalling that a Chinese soft landing is becoming more likely
Fixed asset investment
Bank credit
YoY%
YoY%
Source: CEIC

25. China’s GDP growth is slowly cooling down
China’s GDP growth is slowly cooling down. We expect growth rate to converge to 7% per year
GDP growth
YoY %
Source: CEIC and CVRD

26. Apparent steel consumption is forecast to continue to grow faster than global GDP
CAGR = 0.0% E = 2.9%
CAGR = 7.9% E = 8.4%
Million tons
+5.1%
+7.6%
+12.9%
+10.3%
Source: IISI and CVRD

27. Global seaborne iron ore demand is expected to follow above long-term trend growth
Million tons
CAGR E = 3.9%
CAGR E = 20.7%
+5.9%
+10.8%
+15.4%
+31.8%
Source: CVRD

28. Aluminum inventories are dwindling as global demand is growing at almost 10% per year
Source: IAI, LME, Comex and Bloomberg

29. We expect global aluminum market to remain in deficit in 2005
000’ tons
Source: CRU and CVRD

30. The outlook for the next 12 months is for continuing tightness in the alumina market
Source: Metal Bulletin, LME and Bloomberg

31. Copper inventories continue to be depleted
Copper inventories continue to be depleted. Low inventories give support to next year’s prices
Source: Bloomberg

32. CVRD – A Global Leader

33. Appendix
Reconciliation of non-GAAP information and comparable GAAP information
(1) Adjusted EBIT (US$ million) 3Q03 2Q04 3Q04
Net operating revenues 1,432 1,920 2,173
COGS (812) (912) (1,053)
SG&A expenses (74) (106) (112)
Research and development (22) (27) (36)
Other Operating Expenses (23) (43) (86)
Operating income (Adjusted EBIT)
(2) Adjusted EBITDA (US$ million)
Reconciliation between adjusted EBITDA vs. operating cash flow
Operating Cash Flow ,107
Income tax (41)
Monetary and Foreign Exchange Losses 44 (46) 41
Financial Expenses
Net Working Capital (436)
Others (10) (5) (103)
Adjusted EBITDA ,007

34. Appendix
Reconciliation of non-GAAP information and comparable GAAP information
(3) Gross Debt / LTM Adjusted EBITDA 3Q03 2Q04 3Q04
Gross Debt / LTM Adjusted EBITDA (x)
Gross Debt / LTM Operating Cash Flow (x)
(4) LTM Adjusted EBITDA / LTM Interest Expense
LTM Adjusted EBITDA / LTM Interest Expenses (x)
LTM Operating Profit / LTM Interest Expenses (X)
(5) Gross Debt / Enterprise value
Gross Debt / Enterprise value (x)
Gross debt / Total assets (x)
Enterprise Value = Market Capitalization + Net Debt