1. 2 Disclaimer ”This presentation may contain statements that express management’s expectations about future events or results rather than historical.

1

2

DisclaimerDisclaimer

”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

AgendaAgenda

Performance highlights

Macroeconomic and business outlook

Performance highlights

Macroeconomic and business outlook

4

Performance highlightsPerformance highlights

5

3Q03 highlights3Q03 highlights

Across the board strong sales performance.

Quarterly record top line - US$ 1.483 billion (+30.4% yoy)

Quarterly record cash generation - adjusted EBITDA equal to

US$ 630 million (+21.2% yoy).

Bottom line - a solid US$ 468 million - 9M03 US$ 1.278

billion.

2003 dividend distribution of US$ 675 million - (+12.1%)

yoy) - US$ 1.75 per share vs. US$ 1.57 per share (average

1999/2002).

Projects on track.

6

Excellent sales performanceExcellent sales performance

3Q03 vs 3Q02

-11.2%

16.1%

10.9%

104.5%

10.2%

114.7%

11.7%

13.0%

9.6%

-77.6%

I ron Ore

Pellets

Gold

Manganese ore

Alumina

Aluminum

Potash

Kaolin

Railroads

Ports

46.6 million tons

7,371 million NTK

182,000 tons

747,000 tons

a

b

a - without CAEMI = 43.2 million tonsb - without CAEMI = 140,000 tonsc - running above nominal capacity

c

A new recordA new record

A new recordA new record

A new recordA new record

7

Iron ore and pellets - growth still constrained by capacityIron ore and pellets - growth still constrained by capacity

32.836.2 37.5 37.4 36.4 36.3

3.45.26.16.64.8

4.9

3.9

1Q 02 2Q 02 3Q 02 4Q 02 1Q 03 2Q 03 3Q 03

I ron Ore Pellets

million tons

36.7

41.1 42.3 44.042.5 41.5

37.7

5.5

46.6

Caemi

8

Railroad transportation reached a new quarterly recordRailroad transportation reached a new quarterly record

664 848841 819

662

987

3,4973,3112,7272,9683,0492,8072,737

1,077

1,832

2,2532,247

2,069

2,233

2,6022,797

1Q 02 2Q 02 3Q 02 4Q 02 1Q 03 2Q 03 3Q 03

EFVM EFC FCA

5,658

6,367

6,6476,355

5,622

million ntk

6,900

7,371

9Source: CVRD and Central Bank of Brazil

CVRD logistics services performance decoupled from Brazil’s GDP growth

CVRD logistics services performance decoupled from Brazil’s GDP growth

-5%

0%

5%

10%

15%

20%

1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03

Brazil's GDP yoy growth rate CVRD railroad general cargo transportation yoy growth rate

10

Kaolin Potash and

Other6.2%

Manganese and Ferro-

Alloys5.3%

Aluminum, Alumina

and Bauxite16.4%

Logistics10.7%

Gold0.3%

Pellets13.8%

Iron Ore47.3%

Sales revenues and adjusted EBITDASales revenues and adjusted EBITDA

By productBy product By marketBy market

3Q03 Adjusted EBITDA 3Q03 Adjusted EBITDA

US$ 630 millionUS$ 630 million

3Q03 Gross Revenues US$ 1,483 million3Q03 Gross Revenues US$ 1,483 million

USA3.6%

Domestic Market31.2%

RoW11.7%

J apan7.8%

China12.8%Europe

28.0%Emerging

Asia4.9%

Other6.0%

Aluminum10.3%

Logistics8.4%

Non Ferrous Minerals

3.3%

Ferrous Minerals71.9%

11

A strong and stable operational performanceA strong and stable operational performance

Adjusted EBIT margin

35.0%33.2%32.7%

41.8%

31.2%

32.2%32.7%

20%

25%

30%

35%

40%

45%

50%

55%

60%

65%

70%

1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03

12

5.5

50.2

26.6

17.015.9

12.8 10.56.2

BHPB

Alcoa

CVRD

Newm

ont

Alcan

Barric

kIn

co

Phelps

Dod

ge

A good relative performance in the mining and metals industryA good relative performance in the mining and metals industry

Market Capitalizationas of October 31, 2003

US$ billion

Source: Bloomberg LP and companies reports

(27)

518468

280

114 10035 (0)

BHPB

CVRDAlco

a

Newm

ont

Alcan

Barric

k

Phelps

Dod

ge Inco

Net Earnings 3Q03

US$ million

13

1,9791,890

1,8251,7801,686

1,5871,515

21

1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03

A consistent strong cash generationA consistent strong cash generation

LTM adjusted EBITDA

US$ millionCaemi+FCA

2,000

14

Acquisitions33.0%

Growth Capex41.8%

SIB Capex25.2%

9M03 capex reached US$ 1.5 billion9M03 capex reached US$ 1.5 billion

15

Alunorte (alumina)79.1

Sossego (copper)234.3

Taquari-Vassouras (potash)

19.5

Pier III PDM9.6

Carajás (Iron Ore)28

Mineral Exploration36.5

Fabrica Nova (Iron Ore)

10.7

Candonga/Aimorés (power generation)

32.6

Railcars & Locomotives82.8

Others 101.2

9M03 growth capex - US$ 634.2 million9M03 growth capex - US$ 634.2 million

US$ million

16

Macroeconomic and

business outlook

Macroeconomic and

business outlook

17

Leading indicators are telling us that a synchronous global economic recovery is underway

Leading indicators are telling us that a synchronous global economic recovery is underway

40

45

50

55

60

65

J an-98 J ul-98 J an-99 J ul-99 J an-00 J ul-00 J an-01 J ul-01 J an-02 J ul-02 J an-03 J ul-03

Source: JPMorgan

JP Morgan global manufacturing PMI

18

67%

49%

129%

80%

14%

103%

32%

56%

75%

35%

I ron ore Aluminum Copper Steel Nickel

2002 2003E

Renewed global economic growth contributes to reduce reliance on Chinese-centric demand growth for minerals and metals

Renewed global economic growth contributes to reduce reliance on Chinese-centric demand growth for minerals and metals

Chinese contribution to global consumption growth

Source: CVRD and AME Mineral Economics

19 Source: CVRD, Smith Barney and The Economist

5

10

15

20

25

30

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Cap

ex U

S$

bil

lio

n,

2002

pri

ces

60

80

100

120

Th

e E

con

om

ist

Met

als

Pri

ce I

nd

ex

Capex The Economist Metals Price Index

The metals & mining industry reacted to the Asian crisis by reducing project capex...

The metals & mining industry reacted to the Asian crisis by reducing project capex...

20

1.92.2

2.62.8

3.7

5.2

4.6

3.5

2.92.5

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

... as well as mineral exploration... as well as mineral exploration

Mineral exploration capex - non ferrous minerals

US$ billion

Source: MEG - Corporate Exploration Strategies, 2002.

21

Therefore, the combination of capacity limitations and strong demand growth is producing shortages

Therefore, the combination of capacity limitations and strong demand growth is producing shortages

Iron ore, alumina, copper concentrate and nickel markets

have tightened.

Shipping industry is quoting highest ever freight rates.

22

We expect Chinese demand for CVRD iron ore to remain very strongWe expect Chinese demand for CVRD iron ore to remain very strong

Growth in steel capacity - according to the Chinese Iron

and Steel Association, crude steel capacity will increase

by 120 mtpy from the end of 2003 until the end of 2005.

Need for high iron content and low impurities to boost

productivity and to improve quality of steel products.

CVRD commercial relationship is now supported by long

term contracts, which gives us potential to optimize the

steel value chain.

Dynamics of supply price elasticity is working to increase

effective capesize shipping capacity.

23

Led by Chinese import growth, global seaborne trade is expected to increase by 7.3% in 2003 and 5.8% in 2004

Led by Chinese import growth, global seaborne trade is expected to increase by 7.3% in 2003 and 5.8% in 2004

Source: CVRD Statistics

356 384 358 368 367 372

70 92112 148

173

55

1999 2000 2001 2002 2003E 2004E

411

454 450480

515545

CAGR 99-04

+5.8%

+25.6%

+0.9%Rest of the World

China

World

million tons

China´s share 2002 2003E 2004Ein world seaborne trade 23% 29% 32%

24

CVRD iron ore capacity is also expandingCVRD iron ore capacity is also expanding

Capacity Start-up Capex per

ton

Carajás expansion 14 mtpy 2004 US$

10.31

Southern System expansion 3 mtpy 2004 US$ 7.14

Fabrica Nova phase 1 10 mtpy 2005

Fabrica Nova phase 2 +5 mtpy 2009

Brucutu phase 1 12 mtpy 2006

Brucutu phase 2 +6 mtpy 2008

Total increase 50 mtpy

* mine depletion: 10 million tpy until 2007

Depending on demand assessment Carajás capacity can be expanded up to 100 million tpy until 2010.

CVRD mining projectsCVRD mining projects

US$ 5.67

US$ 12.22

25

We believe that the current alumina shortage will last for a few more yearsWe believe that the current alumina shortage will last for a few more years

High spot prices are feeding into contract pricing, leveraging returns on Alunorte projects.Source: Metal Bulletin, CRU and Macquarie Research

26

Global recovery and USD weakness added better prospects to aluminum pricesGlobal recovery and USD weakness added better prospects to aluminum prices

100000

150000

200000

250000

300000

350000

400000

450000

500000

1998 1999 2000 2001 2002 2003

ton

s

1000

1100

1200

1300

1400

1500

1600

1700

1800

US

D/t

on

Inventories 3-month contract price

Source: LME

Aluminum LME prices and inventories

Albras capacityAlbras capacity20022002 406 kty406 kty20032003 430 kty430 kty20042004 450 kty450 kty

27

Despite the restart of mining capacity kept idle, declining metal inventories, USD weakness and accelerating global IP growth help to support copper prices

Despite the restart of mining capacity kept idle, declining metal inventories, USD weakness and accelerating global IP growth help to support copper prices

100000

300000

500000

700000

900000

1100000

1998 1999 2000 2001 2002 2003

ton

s

1000

1200

1400

1600

1800

2000

2200

US

D/t

on

Inventories 3-month contract price

Source: LME

Copper LME prices and inventories

28Source: CRU

Therefore, a good copper outlook is welcoming Sossego

Therefore, a good copper outlook is welcoming Sossego

Tightness in copper concentrate marketTC/RC charges

0

5

10

15

20

25

30

35

40

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

US

$ c

ents

/lb

Contract Spot

1997 1998 1999 2000 2001 2002 2003

29

AppendixAppendixReconciliation of non-GAAP information and comparable GAAP information

Adjusted EBIT (US$ million) 3Q023Q02 2Q032Q03 3Q033Q03

Net operating revenues 1,098 1,170 1,432

COGS (554) (670) (812)

SG&A expenses (65) (45) (74)

Research and development (15) (12) (22)

Employee profit sharing plan (14) (9) (2)

Others 9 (46) (21)

Operating income (Adjusted EBIT) 459 388 501

Ajusted EBIT Margin = Operating Income / Net Operating Revenues

Adjusted EBITDA (US$ million)

Reconciliation between adjusted ebitda vs. operating cash flow

Operating Cash Flow 356 452 435

Income tax - - (47)

Income tax paid 6 27 6

Monetary and Foreign Exchange Losses 92 1 44

Financial Expenses 41 32 12

Net Working Capital (45) (31) 140

Others (8) 9 40

Adjusted EBITDA 442 490 630

30

www.cvrd.com.bre-mail: [email protected]

www.cvrd.com.bre-mail: [email protected]

CVRD - The Best of Brazil