Vale S.A.

Good morning, ladies and gentlemen. Welcome to Vale's conference call to discuss 4Q20 results. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at the time. If you should require assistance during the call, please press star followed by zero. As a reminder, this conference is being recorded and the recording will be available on the company's website at vale.com at the investor's link. This conference call is accompanied by a slide presentation, also available at the investor's link at the company's website and is transmitted via internet as well. The broadcasting via internet, both the audio and the slide changes has a few seconds delay in relation to the audio transmitted via phone. Before proceeding, let me mention that forward-looking statements are being made under the safe harbor of the Security Litigation Reform Act of 1996. Actual performance could differ materially from that anticipated in any forward-looking comment as a result of macroeconomic conditions, market risk, and other factors. With us today are Mr. Eduardo de Sales Bartolomeu, Chief Executive Officer, Mr. Luciano Ciani Pires, CFO, Mr. Marcelo Spinelli, Executive Officer for Ferro's Minerals, Mr. Mark Travers, Executive Officer for Base Metals, Mr. Carlos Medeiros, Executive Officer for Safety and Operational Excellence, Mr. Alexandre Pereira, Executive Officer for Global Business Support, Mr. Luis Eduardo Osório, Executive Officer for Institutional Relations and Communication, Mr. Paulo Couto, Director of Coal, Mr. Alexandre D'Ambrosio, General Counsel, and Mrs. Marina Quintal, Director of People. Eduardo Bartolomeu will proceed to the presentation on Volley's 4Q20 performance and after that he will be available for questions and answers. It is now my pleasure to turn the call over to Mr. Eduardo Bartolomeu. Sir, you may now begin.

Well, thank you. Good morning everyone. First, I hope you are all well. 2020 will be remembered as one of the most challenging years in our history. As we were making progress with the reparation of Brumadinho and resuming our iron ore operations, we saw the COVID-19 pandemic changing our lives around the world. In early December, a few days after our meeting at Validei, we all got more hopeful with the start of vaccinations in several countries. However, our priorities remain intact. Safety, people, and the reparation of Brumadinho. While the government's vaccination plans are advancing, Vale will keep its guard high. The safety of our people comes first, along with the reparation of Brumadinho. As I have been saying at each of our meetings, Vale is determined to fully repair the damage caused by the Brumadinho threat. Besides contributing even more to the development of the communities where we operate. A major step towards this direction was the global agreement announced on February 4th signed with the public authorities who are the legitimate representatives of the people of Minas Gerais. The economic value of the Global Settlement was R$ 37.7 billion, which includes obligations to pay and to do, in addition to expenses already incurred by Vale, such as the payment of the emergency aid and the environmental recovery works. However, it's important to note that with this, we have a clear number on our balance sheet from the obligations to compensate and repair Brumadinho. Eliminating a great uncertainty related to our provisions. The borderline is that this governance allows for a speedy reparation and compensation, the legitimacy of these actions, and the legal certainty, elements that we have always emphasized in our meetings as fundamental for the settlement. I invite now Alex D'Ambrosio to provide a little bit of more details about it.

Thanks, Eduardo. Well, as Eduardo was just mentioning, the agreement has two essential components from Vale's perspective. First, it brings finality to all class actions and to all collective lawsuits. And second, it has what we call legal certainty to the extent that it was signed by all the petitioners of those class actions. In fact, it was signed by the Attorney General himself, Brazil's Attorney General, and it was ratified by the Court of Appeals of Minas Gerais, which is the highest court in the state. So the agreement resolves all claims relating to collective moral damages and to compensation to communities and to the state of Minas Gerais. The agreement was structured with both payment obligations and performance obligations. Vale's payment obligations are twofold. We established a fixed amount that will revert to the communities directly that were impacted by the disaster and will be distributed and invested according to criteria yet to be established by the public defenders in consultation with the communities. and another fixed amount will be used by the state government for infrastructure and mobility projects in the regions that were most impacted by the disaster. These amounts represent approximately two-thirds of the value of the agreement, these are the fixed amounts, and Vale will deposit these amounts in a judicial account to be managed by the Court of Appeals. Valle is then released from payment obligations upon depositing these amounts in the court, and we will have no further influence in how these amounts will be employed or dispersed. So all we do is deposit these amounts, and we are released from that part. The second part of the agreement relates to Valle's performance obligations. These are essentially environmental recovery obligations, monitoring of water quality, and the continuity of certain health and safety programs. These obligations were constructed jointly with the petitioners and were based on independent technical studies, which became part of the agreement and were validated by all the parties involved. For that reason, we're confident that these measures, these obligations are adequate and sufficient to address the reparations for the region. Volley will be released from these performance obligations once we show evidence of the completion step by step to the court. So I think that wraps up. That explains the global agreement in a nutshell. So back to you, Eduardo. Thank you.