Vale S A : performance in 4Q21 and 2021

www.vale.com

[email protected]

Investor Relations Department

Ivan Fadel

André Werner

Mariana Rocha

Samir Bassil

Conference name and webcast on Friday, February 25

• Portuguese (non-translated) at 10:00 a.m. Brasilia time
• English at midday Brasilia time (10:00 a.m. New York time, 3:00 p.m. London time).

Brazil: (55 11) 4090-1621 or 4210-1803

USA: (1 412) 717-9627 or toll free (1 844) 204-8942

U.Okay.: (44 20) 3795-9972

Access code: VALE

Except the place in any other case indicated, the operational and monetary info in this launch relies on the consolidated figures in accordance with IFRS. Our annual monetary statements are reviewed by the corporate’s impartial auditors. The important subsidiaries which can be consolidated are the next: Companhia Portuária da Baía de Sepetiba, Mineração Corumbaense Reunida S.A., Minerações Brasileiras Reunidas S.A. PT Vale Indonesia Tbk, Salobo Metais S.A, Vale Holdings B.V., Vale Canada Limited, Vale International S.A., Vale Manganês S.A., Vale Malaysia Minerals Sdn. Bhd., Vale Moçambique S.A., Vale Oman Pelletizing Company LLC and Vale Oman Distribution Center LLC.

This press launch could embody statements about Vale’s present expectations about future occasions or outcomes (forward-looking statements). Many of these forward- wanting statements could be recognized by means of forward-looking phrases equivalent to “anticipate,” “imagine,” “might,” “count on,” “ought to,” “plan,” “intend,” “estimate” “will” and “potential,” amongst others. All forward-looking statements contain varied dangers and uncertainties. Vale can’t assure that these statements will show appropriate. These dangers and uncertainties embody, amongst others, components associated to: (a) the nations the place Vale operates, particularly Brazil and Canada; (b) the worldwide economic system; (c) the capital markets; (d) the mining and metals costs and their dependence on world industrial manufacturing, which is cyclical by nature; and

1. world competitors in the markets in which Vale operates. Vale cautions you that precise outcomes could differ materially from the plans, aims, expectations, estimates and intentions expressed in this presentation. Vale undertakes no obligation to publicly replace or revise any forward-looking assertion, whether or not on account of new info or future occasions or for another purpose. To get hold of additional info on components which will result in outcomes totally different from these forecast by Vale, please seek the advice of the studies that Vale information with the U.S. Securities and Exchange Commission (SEC), the Brazilian Comissão de Valores Mobiliários (CVM) and, in specific, the components mentioned beneath “Forward-Looking Statements” and “Risk Factors” in Vale’s annual report on Form 20-F.
   Cautionary Note to U.S. Investors – Vale at the moment complies with SEC Industry Guide 7 in its reporting of mineral reserves in SEC filings. SEC Industry Guide 7 permits mining firms, in their filings with the SEC, to reveal solely these mineral deposits that an organization can economically and legally extract or produce. We current sure info in this presentation that aren’t be permitted in an SEC submitting. These supplies are usually not confirmed or possible reserves, as outlined by the SEC, and we can’t guarantee you that these supplies will probably be transformed into confirmed or possible reserves, as outlined by the SEC. Starting in its subsequent annual report on Form 20-F, Vale will adjust to Subpart 1300 of Regulation S-Okay, which is able to change SEC Industry Guide 7. Subpart 1300 of Regulation S-Okay permits mining firms, in their filings with the SEC, to reveal “mineral reserves”, “mineral sources” and “exploration targets” which can be primarily based upon and precisely displays info and supporting documentation of a certified individual. We current sure info in this presentation that aren’t primarily based upon info or documentation of a certified individual, and that won’t be permitted in an SEC submitting beneath Subpart 1300 of Regulation S-Okay. These supplies are usually not mineral reserves, mineral sources or exploration targets, as outlined by the SEC, and we can’t guarantee you that these supplies will probably be transformed into mineral reserves, mineral sources or exploration targets, as outlined by the SEC. U.S. Investors ought to think about intently the disclosure in our Annual Report on Form 20-Okay, which can be obtained from us, from our web site or at http://http://us.sec.gov/edgar.shtml.
   The info contained in this press launch consists of monetary measures that aren’t ready in accordance with IFRS. These non-IFRS measures differ from essentially the most immediately comparable measures decided beneath IFRS, however now we have not offered a reconciliation to essentially the most immediately comparable IFRS measures, as a result of the non-IFRS measures are forward-looking and a reconciliation can’t be ready with out unreasonable effort.

Vale’s performance in overview

Rio de Janeiro, February 24, 2022 – “In a yr nonetheless marked by the persistent results of the COVID- 19 pandemic and market volatility, we had been capable of ship vital achievements in creating sustainable worth to all our stakeholders. In line with our new pact with society, we superior in repairing Brumadinho and Mariana and strengthened our assist for the battle in opposition to the pandemic. We additionally introduced investments of as much as US$ 6 billion to cut back emissions and outlined our social ambition to create a legacy of training, well being and revenue in the communities we function. We are working safer by implementing VPS, decommissioning our upstream dams and aligning with the GISTM requirements. At the identical time, we’re recovering our iron ore and base metals manufacturing capability, setting the inspiration to create and distribute worth persistently.”, commented Eduardo Bartolomeo, Chief Executive Officer.

Highlights of 2021

Our operations

We delivered on our plan to stabilize our operations:

• In the Ferrous enterprise, we reached an iron ore capability of round 340 Mtpy on the finish of 2021 vs. 322 Mtpy on the finish of 2020. We count on to attain 370 Mtpy capability by the top of 2022.
• We produced 315.6 Mt of iron ore fines in 2021, up 5.1% y/y, primarily on account of (i) the resumption of Serra Leste manufacturing, (ii) improved performance at Itabira and Timbopeba,
• 1. elevated manufacturing of high-silica merchandise in Brucutu and Fábrica, and (iv) larger quantity of third-party purchases. This was partially offset by S11D performance, impacted by the upper strip ratio and decrease mining productiveness throughout the yr, attributable to larger incursion of jaspilite supplies in the ore physique. For 2022, we count on to extend manufacturing to 320-335 Mt.
• Our pellets manufacturing totaled 31.7 Mt in 2021, 6.8% larger y/y, primarily from the resumption of operations at Vargem Grande pelletizing crops firstly of the yr. For 2022, we count on to extend manufacturing to 34-38 Mt.
• In Base Metals, we produced 168.0 kt of nickel, down 8.5% y/y, and 296.8 kt of copper in 2021, down 17.6% y/y. The performance was affected by a number of one-off occasions, such because the labor disruption in Sudbury and the upkeep actions in Salobo, Sossego, Matsuzaka and Onça-Puma. Nevertheless, we transfer extra positively into 2022, with Ontario operations concluding the ramp-up at Sudbury and Totten mine resuming hoisting actions in early February. Matsuzaka refinery and Onça Puma additionally had a robust fourth quarter after upkeep. In copper, Salobo mine motion ought to maintain enhancing throughout the yr. For 2022, we count on nickel manufacturing to succeed in 175-190 kt and copper manufacturing 330-355 kt.
• Our coal manufacturing elevated 44.6% y/y in 2021 to eight.5Mt because of the larger productiveness of the revamped plant.

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• We superior in implementing our administration system (VPS), a concrete signal of our drive for the cultural transformation that may ship outcomes safely and persistently. The operations that matured additional in VPS offered larger adherence to the upkeep plans and operational stability. A direct consequence is that security performance improved broadly throughout the corporate, and we recorded the bottom Total Recordable Injury Frequency Rate (TRIFR) in our historical past.
• We simplified our asset portfolio considerably. We concluded the sale of VNC and engaged in the accountable exit of the Coal Business in Mozambique. We additionally divested the manganese ferroalloy enterprise, the 50% stake in CSI and the Mosaic shares.

Our commitments to reparation and society

Advancing in the reparation initiatives stays considered one of our priorities.

• In Brumadinho, the Integral Reparation Agreement signed in February 2021 introduced legitimacy and authorized certainty to the reparation initiatives. We destined R$ 23.0 billion to the reparation in the final three years, together with the agreements for particular person indemnification with 12.7 thousand individuals. Among the initiatives in 2021, we paid R$ 4.4 billion as a part of the implementation of the Income Transfer Program. We additionally concluded the commissioning of a system of pipelines and reservoirs to guarantee the present demand of the Belo Horizonte area.
• In Mariana, we’re dedicated to the Renova Foundation, by means of its governing physique and by offering specialised professionals to implement the reparation applications. The reinstating of the suitable to housing for 107 households has progressed and, after the adoption of the simplified course of, we doubled the variety of indemnifications, now reaching 51.8 thousand individuals. After new courtroom selections on particular person compensation for residents of cities impacted by the Fundão dam failure, we complemented the availability associated to Renova Foundation by US$ 1.1 billion in 4Q21. These selections primarily modified and expanded the idea of harm, classes, indemnifiable quantities and affected municipalities.
• We partnered with the Movimento Unidos pela Vacina to reinforce the operational construction for vaccination in Brazil. We continued with our humanitarian assist initiatives, donating 1 million baskets of staple meals for households in want in the nation. Since 2020, now we have donated round R$ 830 million to combating COVID-19.

For additional particulars on the reparation progress, an outline of ongoing works and tasks, and the phrases of the Integral Reparation Agreement, please go to www.vale.com/esg. For extra particulars on Renova Foundation, please go to www.fundacaorenova.org.

Dam security

In 2021, we improved the security of our geotechnical buildings

• Our de-characterization plan superior and, by the top of 2021, we had concluded the works on 7 out of the 30 buildings.

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• We improved the security circumstances on the Doutor, Sul Inferior and Norte Laranjeiras dams, permitting reclassification to Emergency Level 1. Additionally, the Emergency Level was faraway from Marés I and Forquilhas IV dams.
• We concluded the development of the backup dam for Forquilhas I, II, III and IV and Grupo dams, close to the Fábrica mine. With that, all of the buildings at the moment in Emergency Level 3 have backup dams in place.
• We began the elimination of tailings from the B3/B4 dam in Nova Lima (MG) and Sul Superior dam in Barão de Cocais (MG) utilizing uncrewed and remotely operated gear.
• We established the Independent Tailings Review Board for every Iron Ore enterprise’s operational system, aligned with the Global Industry Standard for Tailings Management (GISTM) necessities and different trade references.
• We are dedicated to implementing the GISTM. As per the self-assessment course of performed, we had been greater than 60% adherent to the usual necessities by December 2021. We count on to succeed in 90% adherence in 2022, 100% on tailings services with excessive or very excessive potential penalties by August 2023 and 100% for different buildings by August 2025, in line with the deadlines established by the ICMM.
• We began in 2021 the operations of 1 tailings filtration plant on the Vargem Grande Complex and the commissioning of two tailings filtration crops on the Itabira advanced. In 2022, we count on to conclude the final plant in Brucutu, aligned with our dedication to lowering the dependency on using dams.
• In 4Q21, we supplemented the availability for the de-characterization of upstream dams by US$ 1.7 billion after an replace of our estimates contemplating new engineering and geotechnical options, together with new threat administration approaches, using remotely operated gear and reinforcement of the containment plans of sure dams.

Sharing worth creation

• Our proforma adjusted EBITDA was US$ 33.8 billion in 2021, US$ 11.8 billion larger y/y, primarily on account of larger realized costs in ferrous minerals and copper, partially offset by larger prices associated to commodities costs and freight.
• Net revenue was US$ 22.4 billion in 2021, US$ 17.6 billion larger y/y, primarily because of the larger proforma adjusted EBITDA and stronger monetary outcomes.

Since 2021, shareholder remuneration reached US$ 23.0 billion:

• In March, June, and September 2021, now we have paid US$ 13.5 billion in dividends and curiosity on capital for the yr 2020 and anticipation of 2021 outcomes.
• Today, our Board of Directors permitted dividends of US$ 3.5 billion. The quantity distributed was calculated primarily based on the December 31, 2021, steadiness sheet, contemplating our Shareholder Remuneration Policy and together with a unprecedented dividend of $1.25 billion. Payment will probably be made in March 2022.

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