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

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.”

Agenda Delivering strong performance A benign environment

Delivering strong performance

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

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

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

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

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

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

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

Sixteen consecutive quarters of adjusted EBITDA growth LTM adjusted EBITDA(2) US$ billion Composition 1Q06* CAGR 02-05 = 54.3% * Excludes R&D

A powerful cash generation and a healthy balance sheet support capex financing and dividend distribution March 31, 2005 March 31, 2006 Total debt (US$ billion) 4.2 6.1 Net debt(3) (US$ billion) 3.1 4.4 Total debt/LTM Adjusted EBITDA(4) (x) 1.05 0.84 LTM Adjusted EBITDA/LTM interest payment(5) (x) 13.24 27.08 Total debt/EV(6) (%) 11.06 10.31 Average debt life (yrs) 6.66 8.15

Alunorte 4 & 5 and Capim Branco I were concluded in 1Q06 Alunorte 4 & 5 and Capim Branco I were concluded in 1Q06. 16 major projects delivered over the last four years Average ROIC 2002-2005: 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

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

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

A benign environment

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

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

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

A more dynamic domestic steel industry will leave less room to Indian iron ore exports to grow CAGR 2001 -2005: 9.4% CAGR 1990-2000: 6.1% Source: IISI

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

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

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

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

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.

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

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

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

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

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

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 (%) 35.9 40.6 40.0 (2) adjusted EBITDA (US$ million) reconciliation between adjusted EBITDA vs. operating cash flow     1Q05 4Q05 1Q06 Operating cash flow 431 1,516 471 Income tax 160 92 242 Monetary and foreign exchange losses (25) (69) 32 Financial expenses 65 30 199 Net working capital 341 167 787 Others 21 44 (102) Adjusted EBITDA 993 1,780 1,629

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) 1.05 0.77 0.84 Total debt / LTM operational cash flow(x) 1.27 0.97 1.17   (5) Adjusted LTM Ebitda / LTM interest payments 1Q05 4Q05 1Q06 Adjusted LTM Ebitda / LTM interest payment (x) 13.24 25.95 27.08  LTM operational profit / LTM interest payments (x) 11.12 21.56 22.45  (6) Total debt / Enterprise value 1Q05 4Q05 1Q06 Total debt / EV (x) 11.06 10.04 10.31 Total debt / total assets (x) 25.54 22.13 21.84 Entreprise value = Market capitalization + Net debt