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2008 Result

2008 Result. Strength and Flexibility. Rio de Janeiro – February 20 th , 2009. Financial excellence in a challenging scenario. 2007 2008 Δ% Gross revenue 33,115 38,509 16.3 Operational profit 13,194 15,698 19.0 Net profit 11,825 13,218* 11.8 EBITDA 15,774 19,018 20.6. In USD millions.

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2008 Result

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  1. 2008 Result Strength and Flexibility Rio de Janeiro – February 20th, 2009

  2. Financial excellence in achallenging scenario 2007 2008Δ% Gross revenue33,11538,50916.3 Operational profit 13,194 15,698 19.0 Net profit11,82513,218*11.8 EBITDA15,77419,01820.6 In USD millions Record Record Record Record * Including non-cash extraordinary charges derived from the impairment of the goodwill.

  3. Production record: Nickel Bauxite Alumina Copper Thermal coal Cobalt Platinum group metals Precious metals Sales record: Iron ore Nickel Copper Alumina Cobalt Precious metals Platinum group metals Thermal coal Operational excellence

  4. Iron ore production Million tons - 0.5% - 26.4%

  5. Vale’s iron ore and pellet sales Millions of metric tons - 0.03% - 36.1%

  6. Facing the challenges of a low cycle Closure of mines with highest operating costs Cut in administrative costs Seeking greater efficiency in corporate activities Renegotiation of current service contracts Renegotiation of contracts with equipment suppliers and engineering services Long-term strategy remains unchanged

  7. Portfolio of products Gross revenue by product 2008 US$ 38,509 million 2007 US$ 33,115 million * * * cobalt, kaolin, potash and others

  8. Diversification in the destination of sales Gross revenue by destination 2008 US$ 38.509 million 2007 US$ 33.115 million

  9. Excellent financial position Available cash balance: US $12.6 billion (on December 31st, 2008) Long and medium-term credit lines (3 to 10 years) Long-term debt average maturity: 9.3 years Average cost of debt is low: 5.8% per year Diversified options: the portfolio that is being developed includes 23 major projects Mineral exploration: 134 projects around the world to support long-term growth

  10. + 34 % Largest investment of a mining company in the world USD billions * * Excludes purchases

  11. Investments in Brazil 66.2% of Vale's investments in 2008 were in Brazil, which reflects a growth of 29% when compared to 2007 in US$ million

  12. Vale is Brazil’s biggest net exporter 65.2% of the Brazilian trade surplus in 2008 USD billion * exports - imports

  13. Second largest mining company in the world Market capitalization Dec 31, 2001 Feb 13, 2009 US$ 80.9 billion US$ 9.2 billion Record on 16/mai/08:US$ 200.5 billion

  14. Highest PS ever announced by a private company In November 2007, Vale entered into a collective agreement with an unprecedented 2 year deadline in which a 7% readjustment was agreed upon for 2007, and 7% for 2008, plus a R$ 1,200 allowance for each year Average salaries of 3.9 the minimum wage, per employee, as profit sharing (PS).

  15. Efforts to maintain employment levels Internal reassignment: 800 employees Mandatory vacation: 5,500 employees (in the Brazilian States of Minas Gerais and Mato Grosso do Sul) for 30 days, between the months of November/2008 and January/2009. In February, another 1,000 employees. Training: 390 employees in skills development special leave and attending a vocational retraining course. Compensated leave: 125 employees will be taking compensated leave in the State of Minas Gerais in the coming days. According to the union agreement, they will be home until May 31, and their jobs and all labor rights are secured. Due to the cut of 30 million tons in iron ore and the closure of a few mines, the company needed to make adjustments in the labor force: Priority: maintain levels of employment

  16. Corporate social responsibility is a strategic commitment Socio-environmental investments in 2008: US$ 909 million Investments US$ million

  17. 2008 Result Strength and Flexibility www.vale.com/pressoffice Rio de Janeiro – February 20th, 2009

  18. Sensibility test for swap operations of our debt in Reais for USD Debt in reais, converted to U.S. dollars Stress scenario: 50% exchange rate devaluation1 Debt in R$ million Debt in US$ million US$ million Debt reduction in US$ Variation of “fair” figure² in US$ 9.486 9.486 2.029 (1.508) 4.059 2.030 R$ 2,337/US$ R$ 4,674/US$ ¹ on the exchange rate of Vale’s debt of R$ 2.3370 at the end of 2008, in Real converted to U.S. dollars ²marking prices variation of themarket transactions with swaps

  19. Sensibility test for swap operations of our debt in Reais for USD An exchange rate devaluation of 50% would reduce our Real denominated debt to US$ 2,029 billion, when converted to dollars At the same time, it would entail at the market marking with a negative adjustment of US$ 1.508 billion, non-cash effect, in the outcome of derivatives In other words, Vale does not gain or lose anything with derivatives The goal is only to promote the stability of cash flow in dollars

  20. 2008 Result Strength and Flexibility www.vale.com/pressoffice Rio de Janeiro – February 20th, 2009

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