Vale S.a. · BMFBOVESPA:VALE3
Vale — Q2 2021 Earnings Presentation
14 slides from Vale's earnings presentation, Aug 2, 2021
Slide 1: Vale's Performance in 2Q21
Vale’s Performance in 2Q21 Rio de Janeiro, July 29th, 2021 Fernandinho dam decharacterization works were concluded in July 2021
Slide 2: Agenda and Disclaimer
Agenda Disclaimer “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 stateme
Slide 3: Opening remarks
3 Opening remarks
Slide 4: We have made progress in repairing Brumadinho
We have made progress in repairing Brumadinho 4 Integral Reparation Settlement Agreement ✓ Vale will maintain emergency payments for +101,000 people until August 2021¹ ✓ The detailing of projects and governance continues ✓ +1,300 new equipment for 76 Basic Health Units in 8 municipalities ✓ Program
Slide 5: We continue to improve our safety management
✓ Completion of the Fernandinho dam decharacterization works ✓ Completion of the containment structure downstream the Forquilhas I, II, III, IV and Grupo dams ✓ Start of activities to remove tailings from Sul Superior and B3/B4 dams We continue to improve our safety management 5 Upstream dam dechara
Slide 6: We have also made progress on our ESG commitments
We have also made progress on our ESG commitments 37 63 11 2022+ Dez/20 8 Total 1S21 2S21 7 ESG GAPs by Estimated Completion Closed in 1H21: ✓ Board of Directors assessment process ✓ Better reporting on long-term emerging risks ✓ Independent Chairman ✓ Provision for Lead independent director role ✓
Slide 7: We are resuming our production capacity
We are resuming our production capacity 7 US$ 11.239 billion Record proforma adjusted EBITDA 75.7 Mt Production of iron ore fines, 12% higher than 2Q20 US$ 6.527 billion Free Cash Flow, US$ 690 million higher than 1Q21 ¹ Pro forma adjusted EBITDA in 1Q21, excluding expenses with Brumadinho and donat
Slide 8: Our discipline in capital allocation continues
Our discipline in capital allocation continues ¹Balance of provisions as of June 30, 2021, exchange and present value adjustment. ²Initiatives to reduce scopes 1 and 2 emissions. Shareholder remuneration Dividends US$ 6.1 billion in 1H21 ▪ Brumadinho ▪ Renova Reparation ✓ Integral Reparation Settlem
Slide 9: We are on the way to a better Vale
We are on the way to a better Vale 9 Re-rating ▪ Benchmark in Safety ▪ The best and most reliable operator ▪ Talent-oriented organization ▪ Leader in low carbon mining ▪ Reference in value creation and sharing De-risking ▪ Brumadinho ▪ Dam safety ▪ Robust ESG practices ▪ Production resumption Reshap
Slide 10: Iron Ore
10 Iron Ore
Slide 11: Ramping up iron ore production
11 Ramping up iron ore production Guidance of 315-335 Mt in 2021 11 2Q 8 89 8 60 1Q 68 3Q 85 4Q 68 76 Additional production in 2021 2020 Iron ore production (Mt) What will support production increase in 2H21? Usual seasonality 1 Serra Leste: full capacity 2 Brucutu: More high-silica ore due to marke
Slide 12: We are progressing on resumption plan
12 We are progressing on resumption plan 12 Iron ore capacity (Mtpy) Recent developments May 2021 • Brucutu: Increase of high-silica sinter feed production by dry processing taking advantage of market conditions (5 Mtpy of net addition on capacity). April 2021 • Fábrica: Temporary authorization for
Slide 13: We are progressing on resumption plan
13 We are progressing on resumption plan ¹ Brucutu site capacity increased in 2Q21 to 16 Mtpy (+5 Mtpy of net addition) with increase of high-silica sinter feed production by dry processing, taking advantage of market environment. As a result, the net addition capacity from the Torto dam start-up ch
Slide 14: 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. Date: July 29, 2021 Vale S.A. (Registrant) By: /s/ Ivan Fadel Head of Investor Relations