Vale S.a. · BMFBOVESPA:VALE3
Vale — Investor Presentation (May 2018)
18 slides from Vale's investor presentation, May 16, 2018
Slide 1: Forward-looking statements and cautionary note
“This presentation may include statements that present Vale's expectations about future events or results. All statements, when based upon expectations about the future and not on historical facts, involve various risks and uncertainties. Vale cannot guarantee that such statements will prove correct
Slide 2: Forward-looking statements and cautionary note
“This presentation may include statements that present Vale's expectations about future events or results. All statements, when based upon expectations about the future and not on historical facts, involve various risks and uncertainties. Vale cannot guarantee that such statements will prove correct
Slide 3: 5th Avenue, NYC, Easter 1900
4 9h Avenue,NYC,Easter 1900
Slide 4: Easter 1900
Easter 1900 b] NYC 5th Avenue,
Slide 5: Shanghai, 2015
6 Shanghai,2015
Slide 6: Many drivers contributing to the shift towards electric vehicles
7 There are many drivers contributing to the shift towards electric vehicles (EVs) Movement towards renewable energy Tightening of emissions regulations across the globe Restrictions on internal combustion engines (ICEs) Monetary and other incentives China is the main driver
Slide 7: Large sums of capital committed
8 Large sums of capital committed • Volkswagen invests on electric cars. “With the planning round now approved, we are laying the foundation for making Volkswagen the world’s No. 1 player in electric mobility by 2025,” Chief Executive Matthias Mueller. Nov 24, 2017 • Volkswagen & JAC Put Into Chines
Slide 8: Growing consensus that EV production will grow exponentially
9 There is a growing consensus that EV production will grow exponentially Number of electric vehicles1 Millions of EVs Vale EV Upside Case Vale EV Conservative Case 50 45 40 share by 2025 35 30 25 20 A 15 10 5 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1 Includ
Slide 9: Key ingredients in EV batteries are the New Energy Metals
10 The key ingredients in the batteries of Electric Cars are the New Energy Metals Typical BEV battery composition Using NCM 622 chemistry Chemistry favors more nickel and less cobalt Battery types 811 60 kWh Cu 78 kg 11 37 12 kg kg kg Li Ni Co Energy density Nickel rich NCMNCA LOWER COST HIGHER DEN
Slide 10: Implications for New Energy Metals
Implications for New Energy Metals
Slide 11: Battery demand for nickel will reshape the nickel industry
12 Demand for nickel from the battery market will reshape the nickel industry Nickel demand for NEV batteries Breakdown of Ni demand 2017 vs. 20301 % Kt Conservative Upside 2018E 2025E 2030E 1 Considers Vale’s expected demand growth from battery market by 2030 (50% Upside Case and 50% Conservative C
Slide 12: Nickel production will need to grow to supply the EV battery market
13 As a result, the nickel production will need to grow to supply the EV battery market market balance1 • There is availability nickel and technologies to extract it are well known of Class I (non-stainless) Kt Ni Class I surplus Class I inventory 400 200 0 -200 -400 -600 -800 -1,000 -1,200 Class I
Slide 13: Other New Energy Metals will have their own challenges: Copper
14 Other New Energy Metals will have their own challenges to meet the growing demand of EVs Copper Although not directly used in battery chemicals, copper is critical for motors and infrastructure • Demand from electrification adds but does not transform the copper market The copper industry will ne
Slide 14: Other New Energy Metals will have their own challenges: Cobalt
15 Other New Energy Metals will have their own challenges to meet the growing demand of EVs Cobalt Cobalt is needed to help stabilize nickel within the battery, efforts are being made to minimize its content but it is difficult to completely eliminate it • Cobalt supply is inelastic and heavily depe
Slide 15: Nickel mining industry is lagging behind in investments
16 The nickel mining industry is lagging behind in investments due to the lack of incentive price The downstream industry has committed over US$ 150 billion The nickel industry needs better prices Cu Over US$ 40 billion needed in investments for copper Co Cobalt is constrained inasmuch as Ni and Cu
Slide 16: Nickel mining industry is lagging behind in investments
The nickel mining industry is lagging behind in investments due to the lack of incentive price The has committed Cob: _ | Meanwhile, over Over US$ 40 con: US$ 150 billion billion needed in | ina: committed by the investments for downstream copper invested | industry The nickel industry
Slide 17: Sources
Sources Number of electric vehiclesgraph (slide #9) CRU – Nickel Market Outlook (January 2018) BMO - The Lithium Ion Battery and the EV Market: The Science Behind What You Can’t See (February, 2018) – Bull scenario Bloomberg – Long-term Electric Vehicle Outlook 2017 (July, 2017) BofA – Global Electr
Slide 18: Signatures
Signatures Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Vale S.A. (Registrant) By: /s/ André Figueiredo Date: May 16, 2018 Director of Investor Relations