Starting to deliverStarting to deliver the turnaroundthe turnaround2012/4Q12 performance2012/4Q12 performance

February 28, 2013

Disclaimer

“This presentation may include statements that present Vale's expectations aboutfuture events or results. All statements, when based upon expectations aboutthe future and not on historical facts, involve various risks and uncertainties. Valecannot guarantee that such statements will prove correct. These risks anduncertainties include factors related to the following: (a) the countries where weoperate, especially Brazil and Canada; (b) the global economy; (c) the capitalmarkets; (d) the mining and metals prices and their dependence on globalmarkets; (d) the mining and metals prices and their dependence on globalindustrial production, which is cyclical by nature; and (e) global competition in themarkets in which Vale operates. To obtain further information on factors that maylead to results different from those forecast by Vale, please consult the reportsVale files with the U.S. Securities and Exchange Commission (SEC), theBrazilian Comissão de Valores Mobiliários (CVM), the French Autorité desMarchés Financiers (AMF) and The Stock Exchange of Hong Kong Limited, andin particular the factors discussed under “Forward Looking Statements” and “Riskin particular the factors discussed under Forward-Looking Statements and RiskFactors” in Vale’s annual report on Form 20-F.”

2

At Vale, life comes first. Health and safety is a key prioritykey priority

Frequency of accidents remain on a declining trend.

We are continuing to pursue a much safer environment to our employees

1.5 8.0 LWCFR¹ TRIFR¹

We are continuing to pursue a much safer environment to our employees.

1.5

1.0 0 9

5.7

0.9 0.8

0.7 3.9 3.3

2.8

2008 2009 2010 2011 2012 2008 2009 2010 2011 2012

3

¹ LWCFR = Lost workday case frequency rate = all accidents suffered by employees and contractors that result in injuries per million hours of work

¹ TRIFR = Total recordable injury frequency rate = all personal accidents suffered by employees and contractors resulting in time off work per million hours of work

Our goal is to maximize shareholder return through the cycles We are actively pursuingthrough the cycles. We are actively pursuing many ways to achieve it

Removal of uncertainties.– Enormous progress in environmental permitting and gradual resolution of

tax issues.Strong discipline in capital allocation– Focus on world-class assets: towards a smaller and higher return projectFocus on world class assets: towards a smaller and higher return project

portfolio.– Divestiture of non-core assets.

A l t f l t b l k d f i ti ti d j t i– A lot of value to be unlocked from existing operations and projects ramping up.

– Deploying capital to our highest return business: iron ore projects coming on stream in 2013-2016 to add substantial value.

Building a lean organization, with a greater focus on a lower cost structure.Meeting the growth trilemma: capex and dividends aligned with expectedMeeting the growth trilemma: capex and dividends aligned with expected cash flow, with a minimal use of the balance sheet.

4

A robust financial performance even in face of a challenging environment, characterized by subpar global growth and declining metals prices

US$ million

2011 2012

Revenues 60,389 46,454

Operational margin¹ 48.5% 31.5%g

Underlying earnings¹ 23,234 11,236

Adjusted EBITDA¹ 33,759 19,135Adjusted EBITDA 33,759 19,135

Adjusted EBITDA margin¹ 57.2% 42.2%

Capital and R&D expenditures 17,994 17,729p p , ,

Total dividend 9,000 6,000

5

1 Excluding non-cash non-recurring items.

An excellent iron ore performance, increasing t th i llour exposure to the price rally

The highest level for a fourth quarter => 85.5 Mt¹.4Q performance was superior to 3Q for the first time since 2003.Operation of N5 South and below normal rainfall were

finstrumental to the performance.

85 5

Iron ore output¹ – Mt

50.758.1 62.2

69.980.1

63.3 63.4

80.3 82.9 85.5

6

4Q03 4Q04 4Q05 4Q06 4Q07 4Q08 4Q09 4Q10 4Q11 4Q12

¹ Including the attributable share of the 50%-owned Samarco JV.

Iron ore and pellet sales reached an all-time hi h i 2012high in 2012

Iron ore and pellet sales¹ 2003-2012

Mt

276296 296 294 299 303

Mt

186

231255 247

186

7

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

¹ US GAAP basis

The shortening of time to market through the use of our global distribution network is improving the price g p g pperformance of our shipments, despite the 14.3% fall in the premium for 1% Fe in 4Q12

Vale realized prices x IODEX FOB Brazil

US$ t i t

Spread IODEX FOB Brazil x Vale FOB dry

US$ t i t

112

1208

US$ per metric ton US$ per metric ton

112

101

6

90

94100

90

2Q12 3Q12 4Q12

Vale realized price¹

IODEX FOB tb k B il²

-1

2Q12 3Q12 4Q12

8

IODEX FOB netback Brazil² 2Q12 3Q12 4Q12

¹ Vale realized prices adjusted for the average moisture content: 2Q12=7.8%, 3Q12=7.5%, 4Q12=7.6%. ² Platts @ 62% Fe IODEX minus the average quarterly Baltic Capesize Index (BCI) Tubarão-China.

The ramp up of projects - Moatize I, Oman I & II and Bayóvar - allowed for the achievement of all-time high output figures in 2012

MtMt2011 2012 ∆%

Coal 3.7 7.1 + 91.0

Pellets1 53.8 55.1 + 2.3

Phosphate rock 7.4 8.0 + 8.5

9

1 Including Samarco's attributable production.

New platforms of value creation are beginning t l dto ramp up as planned

Salobo: copper & gold.

Lubambe: copper.

VNC: nickel & cobalt.

10

Salobo - a world-class asset in the first quartile f th i d t t i d li iof the industry cost curve - is delivering copper

and gold

Salobo I, the first plant, throughputof 12Mtpa¹, is operating.of 12Mtpa , is operating.

Ongoing construction of Salobo II 12 Mt ¹ 68% h i l12 Mtpa¹ - 68% physical progress -start-up 1H14.

Total capacity - Salobo I&II -200,000 t of copper in concentratesplus about 320,000 ozpy of gold by-product.

11 ¹ Run-of-mine (ROM).

VNC is proving to be technically feasible

Dec 2012 - 812 t of Ni in NiO.

Jan 2013 - 1,380 t of Ni in NiO (87%) and NHC (13%) and 100 t of cobalt (IPCM)100 t of cobalt (IPCM).

Feb 2013 - second production line starting to operate.

Product quality has been very good and meets design expectations

Ni = nickel

design expectations

12

Ni nickelNiO = nickel oxideNHC = nickel hydroxide cakeIPCM = intermediate product of cobalt methodology

Existing base metals operations - nickel & copper - are showing a good performance The successful ramp up ofshowing a good performance. The successful ramp-up of projects – Salobo, Lubambe and VNC - is a major source of upside to current performance

Adjusted EBITDA¹US$ million

Adjusted EBITDA margin¹

613

33 9446

33.9

25.3

13

3Q12 4Q12 3Q12 4Q12

¹ Excluding pre-operating, idling expenses and R&D.

SG&A spending is being reigned in

SG&A¹US$ million

7271,994 1,914 -5%

-31%1,287

904

1,500

501

904

4Q11 4Q122008 2009 2010 2011 2012

14 1 Excludes depreciation and nickel, copper and iron ore adjustment for provisional prices.

Expenses with materials and outsourced i ibl f l t 40% f COGSservices, responsible for almost 40% of COGS,

are starting to be curbed

MaterialsUS$ million

Outsourced servicesUS$ million

1 091

1,163 1,285

1,236-14.4% -6.7%

1 014

1,091

1,096

1,153

1,014995

1Q12 2Q12 3Q12 4Q12 1Q12 2Q12 3Q12 4Q12

15

1Q12 2Q12 3Q12 4Q12 1Q12 2Q12 3Q12 4Q12

R&D is being focused on fewer projects with hi h l ti t ti l 12% l thhigher value creation potential: 12% less than 2011 and 36% less than budgeted for 2012

R&DUS$ million

12 0%1,742

1,533

-12.0%

1,063 1,0101,136

16

2008 2009 2010 2011 2012

Walking the talk: improving working capital management despite the impact of higher iron ore prices in 4Q12

Days receivables outstandingWorking capitalUS$ billi

62.3

8.545

US$ billion

56.27.825

53.252.7

7.213 7.312

17

1Q12 2Q12 3Q12 4Q121Q12 2Q12 3Q12 4Q12

The divestment program is creating value: improves capital allocation generates cash and simplifies thecapital allocation, generates cash and simplifies the portfolio, focusing on what is really important

April 2012: Kaolin - US$ 30 million.

May 2012: Thermal coal in Colombia - US$ 407 million.

July 2012: Manganese ferroalloys in Europe - US$ 160 million.y g y p $

August 2012: 10 large ore carriers - US$ 600 million.

December 2012:

– Araucaria nitrogen - US$ 234 million.g

– Oil & gas exploration assets - US$ 40 million.

T t l di tit US$ 1 471 billi

18

Total divestiture: US$ 1.471 billion

The sale of part of the payable gold by-product stream of Salobo and Sudbury adds US$ 1 9 billion to our cashof Salobo and Sudbury adds US$ 1.9 billion to our cash flow in the very short term and unlocks substantial value

25% of the Salobo stream for mine life and 70% of Sudbury for 20 years20 years.

US$ 1.9 billion upfront payment plus SLW warrants valued at US$ 100 million plus US$ 400 per oz upon gold delivery.US$ 100 million plus US$ 400 per oz upon gold delivery.

Unlocks substantial value still hidden in our base metals operations.p

– Salobo payable gold by-product valued at US$ 5.32 billion plus NPV of US$ 400 payment flows for each oz of gold delivered.p y g

– Estimated capex of Salobo I&II of US$ 4.2 billion with nominal capacity of 200,000 metric tons of copper and the gold by-product.

19

2012 adjusted EBITDA was the third highest in our history notwithstanding the large negativeour history, notwithstanding the large negative contribution of falling prices¹

33,759

Adjusted EBITDA¹US$ million

26,116

15,774

19,018 19,135

6 540

9,150

,

9,165

2,1303,722

6,540

20

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

¹ Prices changes contributed to reduce 2012 adjusted EBITDA by US$ 13.8 billion.

The recovery of iron ore prices and volumes expansion were the main determinants of theexpansion were the main determinants of the adjusted EBITDA rise in 4Q12

Adjusted EBITDA¹US$ million

3 738

719238 205 49 (555)

4,394Dividends²

Δ FX

Costs & Sales

volumes3,738Price

changes

expenses

4Q12¹ After excluding non cash non recurring items

3Q12 After excluding non-cash non-recurring items.

² Dividends received from affiliated non-consolidated companies.

21

Iron ore prices accounted for 96% of the price contribution to 4Q12 adjusted EBITDAcontribution to 4Q12 adjusted EBITDA

PricesUS$ million

693

13154

38 10 10 (11) (62)(144)

719NickelOther

Copper Gold FertilizersMet coal693 719

Logistics & energy

coal

Pellets

22

TotalIron ore

Pre-operating, idling and start-up expenses and maritime freight costs contributed with 83% ofmaritime freight costs contributed with 83% of the increase in cost and expenses in 4Q12

Cost & expenses¹US$ million

(221)

(100)(28) (25)

(18) 79

(555) Prov.

SG&AOther

operational expenses Other

(221)R&D

pricing adjustment

expensesCOGS

(242)Pre-operating,

idling andidling and start-up

23

Freight² Cost & expenses

¹ Excludes the effects of volume and FX changes and depreciation.² US$ 90 million refers to previous quarters.

We used part of our cash holdings to close the gap between uses and sources of funds The cash flowbetween uses and sources of funds. The cash flow performance tends to improve in the very short-term and the balance sheet remains strong

Capital allocation 4Q12US$ billion

2 6

1.30.7 8.9 5.0 8.9

Divestitures

4 3

2.6Gross debt

4.33.0

Use of cash

holdingsProjects and sustaining

capex

0.60.3

O i l

capex

Oth

Dividend payment

UTax

24

Operationalcash flow

Otherp y

¹ Tax payments related to agreements: CFEM (US$ 150 million), TFRM (US$ 289 million) and ICMS (US$ 130 million).

UsesSources agreements¹

Cash position tends to be strengthened over the next few monthsnext few months

US$ 1.9 billion upfront payment of the gold by-product

streaming transaction.

Adjustments for provisional pricing of iron ore shipments inAdjustments for provisional pricing of iron ore shipments in

2012 will add more than US$ 700 million to our cash flow.

Iron ore prices (Platts @ 62% Fe) averaged US$ 152.74 ytd

against US$ 122 30 in 4Q12 (+24 9%)against US$ 122.30 in 4Q12 (+24.9%).

US$ 6.1 billion of cash at year end plus US$ 3.0 billion of

revolving credit lines.25

Capital structure and a low-risk debt portfolio consistent with our high credit ratings: (a) low leverage for the stagewith our high credit ratings: (a) low leverage for the stage of the cycle (b) low cost of debt (c) long average maturity

2.5 Total debt/LTM EBITDA (x)¹

Debt cost and maturity Total debt

%Years2.4

1.8

1.31.0

0.8 0 7 0 6 0 7 0.8 0.91.3

1.6

Total debt/LTM EBITDA (x)

9.110.1

5 5 5 5

6

8

10

0.7 0.6 0.7

22.9

23.6

24.0 25.3

25.3

23.7

24.5

23.0

23.1 24

.9

25.5 29

.1 30.5

5.5

5

5.5

6

8

11.0

11.1

6.2 9.

7

9.4 11

.8 13.2

7.6

5 4.9 1

8.6

6.1

4.6

4.52

4

3.5 4 4.

4Q09 2Q10 4Q10 2Q11 4Q11 2Q12 4Q12

40 1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

3Q12

4Q12

Total debt - US$ billion¹ Liquid assets - US$ billion ¹ ²Average debt maturity Average cost of debt

¹ at end of quarter.² cash and cash equivalent.26

Four major projects - involving total capital expenditures of US$ 13 0 billion¹ are starting upexpenditures of US$ 13.0 billion¹ - are starting up in 2013 to boost value over the next few years

Iron ore & logistics

Carajás Additional 40 Mtpy.

CLN 150 Mtpy.py

Conceição Itabiritos.

Nickel & copper & cobaltNickel & copper & cobalt

Long Harbour.

27 ¹ Total capex estimated for the four projects to be concluded this year.

Carajás Additional 40 Mtpy: expanding capacity ith hi h lit d l twith high quality and low costs

Finalizing plant assembly.

85% of physical progress for mine and plant.

Total capex: US$ 3.475 billion.

Operation license expected for 2H13.

28

CLN 150 Mtpy: the efficient logistics support to Additi l 40 MtAdditional 40 Mtpy

PDM maritime terminal

First ship berthed at Pier IV SouthFirst ship berthed at Pier IV South berth. Car dumpers, reclaimers and stacker tested.

Rail access to car dumpers concluded.

Operation licenses for port facilities expected for 1H13.

Carajás railwayCarajás railway

Double tracking of 125 km underway.

T t l US$ 4 114 billiTotal capex: US$ 4.114 billion.

29

Conceição Itabiritos: counteracting the effects f i ith t h lof resources ageing with technology

Construction of new plant pallowing for mine life extension.

Adds 12 Mtpy of capacityAdds 12 Mtpy of capacity @67.7% Fe content.

95% of physical progress, final phase of electromechanical

blassembly.

Total capex: US$1.174 billion.p $

30

Long Harbour: using new technology to i ffi i d t d t i bincrease efficiency and to reduce costs in base metals

Fully integrated hydrometallurgical flowsheetflowsheet.

50,000 tpy of finished nickel, 4,500 tpy of copper cathodes and 2,500 tpy of cobalt.copper cathodes and 2,500 tpy of cobalt.

Lowers costs, increases metal recovery and eliminates SO2 and particular emission.

Infrastructure and civil works b t ti ll l tsubstantially complete.

Moving towards commissioning, 84% of physical progressphysical progress.

Total capex: US$4.250 billion.31