IFRS 3Q21 (EN)

Interim Financial Statements

September 30, 2021

IFRS in US$

Vale S.A. Interim Financial Statements

Contents

		Page
Report of Independent Registered Public Accounting Firm	3
Consolidated Income Statement	4
Consolidated Statement of Comprehensive Income	5
Consolidated Statement of Cash Flows	6
Consolidated Statement of Financial Position	7
Consolidated Statement of Changes in Equity	8
Notes to the Interim Financial Statements	9
1. Corporate information
2. Basis of preparation of the interim financial statements
3. Significant events in the current period
4. Information by business segment and by geographic area
5. Costs and expenses by nature
6. Financial results
7. Income taxes
8. Basic and diluted earnings per share
9. Accounts receivable
10.	Inventories
11.	Other financial assets and liabilities
12.	Acquisitions and divestitures
13.	Investments in subsidiaries, associates and joint ventures
14.	Intangible
15.	Property, plant and equipment
16.	Financial and capital risk management
17.	Financial assets and liabilities
18.	Participative stockholders' debentures
19.	Loans, borrowings, leases, cash and cash equivalents and short-term investments
20.	Brumadinho's dam failure
21.	Liabilities related to associates and joint ventures
22.	Provisions
23.	Litigations
24.	Employee benefits

25. Stockholders' equity

26. Related parties

2

Report of Independent registered Public Accounting Firm

To the Stockholders and Board of Directors of

Vale S.A.

Results of Review of Interim Financial Statements

We have reviewed the accompanying consolidated statement of financial position of Vale S.A. and its subsidiaries (the "Company") as of September 30, 2021, and the related consolidated income statement, consolidated statement of comprehensive income and the consolidated statement of cash flows for the three and nine-month periods ended September 30, 2021 and September 30, 2020, and the consolidated statement of changes in equity for the nine-month periods ended September 30, 2021 and September 30, 2020, including the related notes (collectively referred to as the "interim financial statements"). Based on our reviews, we are not aware of any material modifications that should be made to the accompanying interim financial statements for them to be in conformity with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB).

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated statement of financial position of the Company as of December 31, 2020, and the related consolidated income statement and consolidated statements of comprehensive income, changes in equity and of cash flows for the year then ended (not presented herein), and in our report dated February 25, 2021, which included a paragraph describing a change in the manner of accounting for leases on January 1, 2019, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying consolidated statement of financial position as of December 31, 2020, is fairly stated, in all material respects, in relation to the consolidated statement of financial position from which it has been derived.

Basis for Review Results

These interim financial statements are the responsibility of the Company's management. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our review in accordance with the standards of the PCAOB. A review of interim financial statements consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

/s/ PricewaterhouseCoopers Auditores Independentes Ltda. Rio de Janeiro, RJ, Brazil

October 28, 2021

3

Consolidated Income Statement

In millions of United States dollars, except earnings per share data

				Three-month period ended		Nine-month period ended
						September 30,				September 30,
		Notes	2021	2020	2021	2020
Net operating revenue		4(c)		12,682		10,762		42,002		25,249
Cost of goods sold and services rendered		5(a)	(5,836)	(4,816)	(16,268)	(13,306)
Gross profit				6,846		5,946		25,734		11,943
Operating expenses
Selling and administrative expenses		5(b)	(115)	(127)	(353)	(366)
Research and evaluation expenses				(136)		(105)		(377)		(290)
Pre-operating and operational stoppage		3 and 20	(165)	(188)	(501)	(694)
Brumadinho event		20		(161)		(114)		(461)		(403)
Other operating expenses, net		5(c)	(36)	(113)	(122)	(412)
				(613)		(647)		(1,814)		(2,165)
		12 and
Impairment and disposals of non-current assets	15		(2,390)	(298)	(2,983)	(730)
Operating income				3,843		5,001		20,937		9,048
Financial income		6		91		69		251		311
Financial expenses	6		(136)	(1,215)	(1,699)	(2,325)
Other financial items, net		6		(328)		(214)		1,348		(2,116)
		13 and
Equity results and other results in associates and joint ventures	21		128	(40)	(342)	(741)
Income before income taxes				3,598		3,601		20,495		4,177
Income taxes		7(b)
Current tax				(2,464)	(743)	(5,180)	(1,416)
Deferred tax				2,824		(51)		1,657		1,126
				360	(794)	(3,523)	(290)
Net income				3,958	2,807	16,972	3,887
Net income (loss) attributable to non-controlling interests				72		(101)		(46)		(255)
Net income attributable to Vale's stockholders				3,886	2,908	17,018	4,142
Earnings per share attributable to Vale's stockholders:
Basic and diluted earnings per share:		8
Common share (US$)				0.76	0.57	3.36	0.81

The accompanying notes are an integral part of these interim financial statements.

4

Consolidated Statement of Comprehensive Income

In millions of United States dollars

			Three-month period ended		Nine-month period ended
					September 30,				September 30,
			2021		2020	2021	2020
	Net income		3,958		2,807		16,972		3,887
	Other comprehensive income (loss):
	Items that will not be reclassified to the income statement
	Translation adjustments	(3,249)		(1,047)	(1,364)	(12,296)
	Retirement benefit obligations (note 24)		95		76		411		(124)
	Fair value adjustment to investment in equity securities (note 11)	150		251	343	42
			(3,004)		(720)		(610)		(12,378)
	Items that may be reclassified to the income statement
	Translation adjustments	1,380		648	624	5,776
	Net investments hedge (note 16)		(127)		(81)		(85)		(720)
	Net cash flow hedge (note 16)	10		(56)	(16)	(41)
	Reclassification of cumulative translation adjustment to net income (note 12)		(10)		-		(1,552)		-
			1,253		511	(1,029)	5,015
	Total comprehensive income (loss)		2,207		2,598		15,333		(3,476)
	Comprehensive loss attributable to non-controlling interests		69		(94)		(47)		(223)
	Comprehensive income (loss) attributable to Vale's stockholders	2,138		2,692	15,380	(3,253)

Items above are stated net of tax and the related taxes are disclosed in note 7.

The accompanying notes are an integral part of these interim financial statements.

5