1Q09 Result

1
1Q09 Result

• Facing the current scenario

Rio de Janeiro May 7th, 2009
2
Solidity before an unprecedented scenario
12.2 billion in cash reserves and low leverage
1,0x
1Q08 1Q09 ? Gross
revenue 7,442 5,421 -27.2 Operational profit
2,013 1,685 -16.3 Net profit 1,367 1,363
-0.3 EBITDA 2,697 2,281 -15.4
In USD millions
3
Vales iron ore and pellet sales
Millions of metric tons
- 5,1
4
Portfolio of products
Gross revenue by product
1Q09 US 5,421 millions
4Q08 US 7,442 millions


cobalt, kaolin, potash and others
5
Diversification in the destination of sales
Gross revenue by destination
1Q09 US 5,421 millions
4Q08 US 7,442 millions
6
Reducing the cost of products
In U.S. million
Sales volume
D exchange rate
Prices of inputs and others
7
Responding to the recession

• Pursuit of greater efficiency in corporate
  activities
• Staff insourcing
• Contract renegotiations with suppliers
• Cost cuts in projects that are being developed
• Optimization of product lines
• Closure of mines that incur the highest
  operational costs

8
Strengthening our competitiveness

• 43 of all iron ore production currently comes
  from mines located in Carajás. Over the past 5
  years, these mines were responsible for 32 of
  total iron ore production.
• Carajás low cost and high quality operations
• Carajás the largest proven and probable reserves
  in the world 7.2 billion metric tons and 67 Fe
  content
• Initiative to create an exclusive maritime
  transport line fleet of 12 VLOCs and charter
  contracts
• Increased customer base
• Distribution centers in the Middle East and Asia
  for a more flexible distribution capacity
• More flexible stance on iron ore pricing

9
Level of employment
Vale has had a positive balance 3294 jobs
compared to 1Q08
10
Stable Investment
Acquisitions in 1Q09 US 922 millions
USD billions
1,2
Excludes purchases
11
Socio-environmental investments US 130.5
millions in 1Q09
US millions
12
Vale is Brazils biggest net exporter
102 of the Brazilian trade surplus in 1Q09
USD billion
exports - imports
13
Second largest mining company in the world
Market capitalization
Dec 31, 2001
Mai 6, 2009
US 9.2 billion
US 95.3 billion
Record on 16/mai/08US 200.5 billion
14
1Q09 Result

• Facing the current scenario

www.vale.com/pressoffice
Rio de Janeiro May 7th, 2009