Interim Financial Statements
June 30, 2021
IFRS in US$
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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. | Intangibles | ||
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
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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 June 30, 2021, and the related consolidated income statement, consolidated statement of comprehensive income and the consolidated statement of cash flows for the three and six-month periods ended June 30, 2021 and June 30, 2020, and the consolidated statement of changes in equity for the six-month periods ended June 30, 2021 and June 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 Rio de Janeiro, RJ, Brazil July 28, 2021
PricewaterhouseCoopers Auditores Independentes, Rua do Russel 804, Edifício Manchete, 6º e 7º andares, Rio de Janeiro, RJ, Brasil 22210-907,T: (21) 3232-6112,
F: (21) 3232-6113, www.pwc.com/br
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Consolidated Income Statement
In millions of United States dollars, except earnings per share data
Three-month period ended June 30, | Six-month period ended June 30, | ||||||||
Notes | 2021 | 2020 | 2021 | 2020 | |||||
Net operating revenue | 4(c) | 16,675 | 7,518 | 29,320 | 14,487 | ||||
Cost of goods sold and services rendered | 5(a) | (5,805) | (4,212) | (10,432) | (8,490) | ||||
Gross profit | 10,870 | 3,306 | 18,888 | 5,997 | |||||
Operating expenses | |||||||||
Selling and administrative expenses | 5(b) | (133) | (124) | (238) | (239) | ||||
Research and evaluation expenses | (141) | (90) | (241) | (185) | |||||
Pre-operating and operational stoppage | 20 | (191) | (238) | (336) | (506) | ||||
Brumadinho event | 20 | (185) | (130) | (300) | (289) | ||||
Other operating expenses, net | 5(c) | (74) | (237) | (86) | (299) | ||||
(724) | (819) | (1,201) | (1,518) | ||||||
Impairment and disposals of non-current assets | 12 and 15 | (432) | (403) | (593) | (432) | ||||
Operating income | 9,714 | 2,084 | 17,094 | 4,047 | |||||
Financial income | 6 | 86 | 135 | 160 | 242 | ||||
Financial expenses | 6 | (177) | (585) | (1,563) | (1,110) | ||||
Other financial items, net | 6 | 441 | (35) | 1,676 | (1,902) | ||||
Equity results and other results in associates and joint ventures | 13 and 21 | (454) | (535) | (470) | (701) | ||||
Income before income taxes | 9,610 | 1,064 | 16,897 | 576 | |||||
Income taxes | 7(b) | ||||||||
Current tax | (1,201) | (326) | (2,716) | (673) | |||||
Deferred tax | (872) | 181 | (1,167) | 1,177 | |||||
(2,073) | (145) | (3,883) | 504 | ||||||
Net income | 7,537 | 919 | 13,014 | 1,080 | |||||
Loss attributable to non-controlling interests | (49) | (76) | (118) | (154) | |||||
Net income attributable to Vale's stockholders | 7,586 | 995 | 13,132 | 1,234 | |||||
Earnings per share attributable to Vale's stockholders: | |||||||||
Basic and diluted earnings per share: | 8 | ||||||||
Common share (US$) | 1.49 | 0.19 | 2.57 | 0.24 |
The accompanying notes are an integral part of these interim financial statements.
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Consolidated Statement of Comprehensive Income
In millions of United States dollars
Three-month period ended June 30, | Six-month period ended June 30, | ||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||
Net income | 7,537 | 919 | 13,014 | 1,080 | |||||||
Other comprehensive income (loss): | |||||||||||
Items that will not be reclassified to the income statement | |||||||||||
Translation adjustments | 5,233 | (1,786) | 1,885 | (11,249) | |||||||
Retirement benefit obligations (note 24) | 25 | (209) | 316 | (200) | |||||||
Fair value adjustment to investment in equity securities | (82) | 39 | 193 | (209) | |||||||
Total items that will not be reclassified to the income statement, net of tax | 5,176 | (1,956) | 2,394 | (11,658) | |||||||
Items that may be reclassified to the income statement | |||||||||||
Translation adjustments | (2,762) | 885 | (756) | 5,128 | |||||||
Net investments hedge (note 16) | 202 | (119) | 42 | (639) | |||||||
Net cash flow hedge (note 16) | (35) | (49) | (26) | 15 | |||||||
Reclassification of cumulative translation adjustment to net income (note 12) | (424) | - | (1,542) | - | |||||||
Total items that may be reclassified to the income statement, net of tax | (3,019) | 717 | (2,282) | 4,504 | |||||||
Total comprehensive income (loss) | 9,694 | (320) | 13,126 | (6,074) | |||||||
Comprehensive loss attributable to non-controlling interests | (47) | (53) | (116) | (129) | |||||||
Comprehensive income (loss) attributable to Vale's stockholders | 9,741 | (267) | 13,242 | (5,945) | |||||||
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.
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Vale SA published this content on 28 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 July 2021 23:56:04 UTC.