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Vale: A Global Leader Vale: A Global Leader
February 2008
Vale: A Global Leader Vale: A Global Leader February 2008 1 - - PowerPoint PPT Presentation
Vale: A Global Leader Vale: A Global Leader February 2008 1 Disclaimer This presentation may contain statements that express managements expectations about future events or results rather than historical facts. These forward-looking
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February 2008
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”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 Vale cannot give assurance that such statements will prove
and Canadian economies and securities markets, which exhibit volatility and can be adversely affected by developments in other countries; relating to the iron ore and nickel businesses and their dependence on the global steel industry, which is cyclical in nature; and relating to the highly competitive industries in which Vale operates. For additional information on factors that could cause Vale’s actual results to differ from expectations reflected in forward-looking statements, please see Vale’s reports filed with the Brazilian Comissão de Valores Mobiliários and the U.S. Securities and Exchange Commission.”
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131.6 44.3 31.8 26.1 24.3
Vale Barrick Gold Freeport McMoran Alcoa Newmont
market capitalization1 US$ billion
1 as of January 24, 2008.
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16.9 15.6 12.5 10.1 8.3 7.3 7.2 6.5 5.8 5.0 4.0 3.7 3.3 2.9 2.4 2.1 2.0 1.9 1.8 1.8 1.7 1.6 1.5
1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06¹ 1Q07¹ 2Q07¹ 3Q07¹
1 LTM = last twelve months, excluding extraordinary effect of inventory adjustment
CAGR 2002-2007 = 48.4%
LTM adjusted EBITDA¹ US$ billion
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Berkshire Hathaway Procter & Gamble Disney General Electric FedEx 5 10 15 20 25 30 35 40 45 50
%
1 As ranked by Fortune Magazine 2007
Source: Fortune Magazine, Bloomberg and Vale Note: Nine month period ended on Sep/2007 for Vale, Disney and Berkshire Hathaway. Last twelve month perior ended
Operating Profit Margin %
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0.51 0.39 0.27 0.28 0.17 0.14 0.13
2002 2003 2004 2005 2006 2007 2008
1 2002-2007 period 2 Minimum dividend proposal as announced on January 21, 2008.
Dividend distribution
US$ per share CAGR 2003-20082 = 25.6%
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24.5% 25.8% 50.6% 53.3% 54.6% 23.2% 23.2% 20.8% 20.7% 20.1% Boeing Toyota Endesa BHP Billiton Anglo American Genentech British American Tobacco Apple América Móvil Vale
The large-cap2 Top Ten , 2002-2006 Total Shareholder Return (TSR)
1 Boston Consulting Group “The 2007 Value Creators report”. Large cap = companies with market cap above US$ 50 billion 2 TSR average between 2002 and 2006
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Ranking Company Country US$ million 1 Vale Brazil 725.56 2 Petrobras Brazil 626.93 3 Nokia Finland 360.00 4 América Móvil Mexico 322.15 5 PotashCorp Canada 281.03 6 BP UK 273.16 7 BHP Billiton Australia 230.12 8 Suncor Canada 220.31 9 Barrick Gold Canada 219.62 10 GoldCorp Canada 208.15
1 Average daily value of trading, in 2007
Source: NYSE Euronext
Top 10 traded ADRs1
Vale: #1 traded ADRs at the NYSE in 2007
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iron ore and pellets 42,8% PGM 1,1%
3,1% aluminum 8,3% nickel 32,5% Manganese e ferroalloys 1,8% copper 5,9% logistics 4,6%
2007 9M07 sales revenues
US$ 24.7 billion
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ROEs in excess of 30% Operating profit margins higher than 40%
Average annual TSR in excess of 50% Dividend per share growth higher than 25%
High demand from the locomotive of the world, China
+30 low-cost high-return project pipeline
at January 24, 2008 Price: $28.32 52-wk Lo/Hi: $16.35/ $36.50
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e-mail: rio@vale.com