Vale S A : Transcrição Vale Day 2021 (Inglês)

Vale Day 2021

New York Stock Exchange | November 29, 2021

[START ENG NOV29.MP3]

IVAN FADEL|HEAD OF INVESTOR RELATIONS: Hello everyone. Thank you so much for being here. Welcome to Vale Day 2021. I'm Ivan Fadel, Head of Investor Relations here at Vale. First of all, I'd like to thank you all very much for being here with us today. I think we're still transitioning to these in-person meetings, so it really means a lot to have you all here with us. I'd also like to thank our live audience online for your time and interest in our company today.

So, the idea here is that we have the top management team of Vale to have a slide presentation. We're going to talk about the main deliveries and main milestones for the last 12 months. We're going to also update you on our strategy, how we're looking into the future, how we're positioning ourselves in this decarbonization world, and we're also going to make some announcements, so stay tuned for that.

The presentation should take about 1 hour and 15 minutes, 1 hour and 30 minutes. After that we're going to have a Q&A session. It should also take about 30 minutes to 45 minutes. We're going to take questions from everyone here present. We're also going to be capturing questions from our live audience on the webcast for that. You're going to see an email address on the screen. You can send your question to that email and we're going to read them out loud here.

Without further ado, I would like to invite Mr. Eduardo Bartolomeo, our CEO. I hope you enjoy this event. Eduardo, please, the floor is yours. Thank you.

EDUARDO BARTOLOMEO|CHIEF EXECUTIVE OFFICER: Thank you. Thank you, Ivan. Good morning everyone. It's very nice to be here in your presence. Actually, it's my first presentation in person since 2020. The only negative side is that we cannot do it in Bermudas now 2020 because of the pandemic. Anyhow, I would like to enforce the acknowledgement that Ivan said about being here today. Thanks a lot for making the effort to come here to talk to us and for the audience as well that is listening to our story we be here.

Today I'm going to quickly pass a little bit over what I'm going to try to convey and tell you how we are advancing on our strategy and actions. Of course you do remember our five strategic pillars. They are things that were embedded after Brumadinho, the first two ones, the safety and the operational excellence, and what we call the New Pact with Society. They

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are drivers to an ambition that Vale has to be a safer, a more reliable, a more human-driven,talent-driven organization, a sustainable miner and obviously a creator in sharing value with shareholders or with the society as well.

Those ambitions in the end; what is the main line around what we are talking here today? We believe that the homework that Vale has been undergoing since Brumadinho, it's hard to say it's a continuous process, but obviously it's almost completed. But on the other hand, you're going to see there is something in the very short term that we understand that it's the biggest value on our story, on an equity story, is that obviously the world has a biggest challenge as everybody knows, climate change. It's been recently exposed by COP 26. We want to be as a miner as a specific company not only necessary but wanted to the world because we're essential to that.

Specifically, when you look at Vale assets, you're going to see that we are extremely well exposed to both iron ore and base metals. The baseline is this. We're going to talk a little bit around the homework. The first two pillars are a lot about what we're doing inside Vale to transform Vale. The last three pillars are around how we're getting from this homework done to capture the opportunities that our assets have in this new world.

Reparation, People & Safety

EDUARDO BARTOLOMEO|CHIEF EXECUTIVE OFFICER: This first part I'm going to do together with Carlos Medeiros, our Executive Vice President for Operational Excellence. Of course, and this is obvious for us, we will never forget Brumadinho. Brumadinho as you know has been the driving force in everything that we are undergoing inside Vale. All those behaviors that we need to change, all the things that we need to do are driven from a process of learning that was derived from this. It's a lot of listening because you have to engage with communities that are affected.

In this case, it's a tapestry. It's a very nice piece of work done by the affected people, a widow of one of the victims, and it has been exposed in Inhotim. Inhotim is an open-air museum in Brazil, very, very nice. It's true, a process of, as I mentioned before, of learning and acting. But fundamentally engaging to respond to the needs of the community.

As you also know, on February 20, we struck a deal, an agreement with the local part in Minas Gerais with the affected people with the prosecutors of 37.7 billion reais and of course it brought legal certainty, it brought

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governance, and it brought ability to execute.

But to show you some concrete actions--because as I mentioned in the beginning, I want to show you concrete actions that we are taking in that direction. I would like to make a small video of what is being done in Brumadinho.

[Video Start]

FEMALE VOICE: In February 2021, Vale, public authorities, and justice institutions established an agreement for integral reparation in Brumadinho. This agreement is under execution, underscoring our commitment to socioeconomic and environmental reparations. The following is a highlight of our latest developments. We continue to be dedicated to expediting indemnity agreements. Almost 12,000 people are already covered by individual agreements. To secure water, we've completed a new 11-kilometer pipeline and a water collection system at the Paraopeba River, which continues under around-the-clock surveillance.

In the urban structure, we've delivered social impact facilities, such as daycare centers and family health units. We've expanded access to healthcare and prepared professionals with training. In addition, over 5,500 pieces of equipment were donated, and 143 basic health units were assisted.

In the social and economic aspect, we have supported projects to foster and diversify the local economy. Together with the Yara Tupynambá Institute, we've trained members of the local communities with professional courses in civil construction and gardening. The students were able to apply the knowledge and skills in more than 230 homes and gardens. We remain committed to repairing Brumadinho with transparency and speed. Everything we have learned since the B1 dam breach has helped us advance toward a better Vale.

[Video End]

EDUARDO BARTOLOMEO|CHIEF EXECUTIVE OFFICER: Well, as you can see, a lot of things have been done. 55% of the total payments that we're supposed to do--and Gustavo will come later on--the disbursement profile of that has been done, as I mentioned with legal certainty with execution and more importantly, with governance. Because when you see the projects that we list here, they are things that you have to execute. You have to listen to society. That, by the way, for us was maybe the biggest wake-up call to move, to transform our culture, the active way of listening and understanding what are areas of improvement.

Of course, I won't go for the right side of the slide because that was

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mentioned in the video, but I would like to jump to the important things that are undergoing inside Vale. It's that we need to transform our culture. But of course, that culture is transformed by the people there inside Vale, these people putting people at the center as we mentioned before in Brumadinho, putting people in the center as we do inside the company is critical. We chose a path I'm going to share in a minute, a whole lot of the key behaviors that we want to change. We actively engaged our managers on that; 80% of our managers are activated on that. Of course, we have 99% critical roles of success mapped, so human resource of people is a key element of our debt.

But interestingly, because of this--we cited in one of those, our Vale Day presentations--we need to double our gender diversity. We had 13%. Mining normally is a man's world and of course, as everybody knows, a diverse inclusive company performs much better than a non-diverse inclusive company.

This is another very important point I wanted to make here. This is concrete. This is not something we are talking about. Since 2019 we have increased our workforce by 39%, female workforce. We added 4,500 women in our workforce, and we have an 80% increase in senior leadership roles. Actually, Malu was supposed to be here. I even doubled my VPs. Now I have my Human Resource and my Sustainability as leadership in females.

But there is a second diversity issue more focused in Brazil that I think is being brought to our attention and has a huge impact as well in diversity, is ethnicity. We just made a census in Brazil specifically to be self- declaratory of course. You ask people what to call or they are. We are 65% non-white in Brazil. What does it mean? That that implies here when we have this goal that I'm going to mention next, we only have 29% of our leadership roles from supervisors as blacks. So, there's an imbalance that's not acceptable. It demonstrates a structural racism problem, so we have this goal as well to increase our leadership roles to 40% by 2026. It is not enough to be pro-diversity, so last week or the week before we just launched a manifest of anti-racism because it's very important.

We are in a country as the U.S. that has the same issues, and we have to target very clearly and very openly. As I mentioned before, it will bring to us a much better, a much more inclusive, much better performance company to achieve those ambitions that I mentioned before.

But culture is something hard to manage. Everybody asks, "How are you transforming culture? How do you manage your debt?" We have a tool. It's called Echoes Pulse. It's more or less standard in the industry. We took surveys of course and it was identified. I, myself, answered the survey.

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