Vale rio doce

Boosting value creation

Luciano Siani, CFO September 19, 2012
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Disclaimer
“This presentation may include declarations about Vale's expectations regarding future events or results. All declarations based upon future expectations, rather than historical facts, are subject to various risks and uncertainties. Vale cannot guarantee that such declarations will prove to be correct. These risks and uncertainties include factors related to the following: (a) the countries where Vale operates, mainly Brazil and Canada; (b) the global economy; (c) capital markets; (d) the mining and metals businesses and their dependence upon global industrial production, which is cyclical by nature; and (e) the high degree of global competition in the markets in which Vale operates. To obtain further information on factors that may give rise to results different from those forecast by Vale, please consult the reports filed with the Brazilian Comissão de Valores Mobiliários (CVM), the French Autorité des Marchés Financiers (AMF), and with the U.S. Securities and Exchange Commission (SEC), including Vale’s most recent Annual Report on Form 20F and its reports on Form 6K.”
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Agenda

 The China story isn’t over  Leveraging on the world’s best iron ore reserves  Managing capital to create value

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The China story isn’t over

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There is still a long way for China in the process of convergence to the income standards of advanced nations
Per capita GDP/US per capita GDP
%
100 90 80 70 60 50 40 30 20 10 0 1960

Japan Taiwan Korea

China India
1965 1970 1975 1980 1985 1990 1995 2000 2005 2010

Sources: Penn World Tables and Vale 5

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The pace of growth of Chinese steel demand is slowing, but will not peak for at least another decade
 Intensity of metal use is affected by many factors geography, industrial policy, technical capability, resource endowment, consumption standards.  Typically each country follows a different path of steel