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Ações VALE - Apresentação de Resultados 2T15
The document presents Vale's operational and financial performance for Q2 2015, highlighting production and sales volumes across various minerals, including iron ore, nickel, and gold, with year-on-year increases. It discusses financial metrics such as adjusted EBITDA and the impact of pricing systems on revenue, alongside capital expenditures and the company's debt position. Key risks and uncertainties affecting future performance are noted, including global economic factors and regional operational challenges.
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Ações VALE - Apresentação de Resultados 2T15
- 1. 0 Vale's performance in2Q15 July 30, 2015
- 2. 1 Disclaimer “This presentation mayinclude statements that present Vale's expectations about future events or results. All statements, when based upon expectations about the future and not on historical facts, involve various risks and uncertainties. Vale cannot guarantee that such statements will prove correct. These risks and uncertainties include factors related to the following: (a) the countries where we operate, especially Brazil and Canada; (b) the global economy; (c) the capital markets; (d) the mining and metals prices and their dependence on global industrial production, which is cyclical by nature; and (e) global competition in the markets in which Vale operates. To obtain further information on factors that may lead to results different from those forecast by Vale, please consult the reports Vale files with the U.S. Securities and Exchange Commission (SEC), the Brazilian Comissão de Valores Mobiliários (CVM), the French Autorité des Marchés Financiers (AMF) and The Stock Exchange of Hong Kong Limited, and in particular the factors discussed under “Forward-Looking Statements” and “Risk Factors” in Vale’s annual report on Form 20-F.”
- 3. 2 Operational performance Financial performance Capital expenditures Capital structure DOCUMENT CONTENT
- 4. 3 Operational performance Financial performance Capital expenditures Capital structure DOCUMENT CONTENT
- 5. 4 PRODUCTION VOLUMES Nickel Kt Copper³ Kt Gold '000 oz PhosphateRock Mt Iron ore¹ Mt Coal Mt Pellets² Mt ¹ Includes iron ore fines, lump, ROM and iron ore feed for Vale’s pellet plants. Excludes Samarco’s attributable production. ² Excludes Samarco's attributable production. ³ 2013 figures include Tres Valles production (1Q13: 3.7 Kt, 2Q13: 3.6 Kt, 3Q13: 2.9 Kt and 4Q13: 0.8 Kt). Includes Lubambe’s attributable production.
- 6. 5 PRODUCTION VOLUMES YEAR-ON-YEAR IronOre¹ ² Mt Pellets² Mt Nickel Kt +7.4% +22.0% +8.8% Copper³ Kt +29.5% ¹ Includes iron ore fines, lump, ROM and iron ore feed for Vale’s pellet plants. ² Excludes Samarco’s attributable production. ³ Includes Lubambe’s attributable production. Gold '000 oz +42.9%
- 7. 6 SALES VOLUMES Iron ore¹ Mt Nickel Kt Copper² Kt Gold '000oz Phosphate Rock Mt Coal Mt Pellets Mt ¹ 2Q15 figure includes 67.2 Mt of iron ore ex-ROM and 4.2 Mt of ROM. Excludes Samarco’s attributable production. ² 1Q13, 2Q13, 3Q13 and 4Q13 figures include Tres Valles sales volume. Excludes Lubambe’s attributable production.
- 8. 7 SALES VOLUMES YEAR-ON-YEAR IronOre Mt Pellets Mt +5.9% +28.4% Copper Kt +27.8% Gold ‘000 oz +58.8% 109.1 Nickel Kt 0.0%
- 9. 8 Operational performance Financial performance Capital expenditures Capital structure DOCUMENT CONTENT
- 10. 9 ADJUSTED EBITDA¹ US$ billion AdjustedEBITDA margin (%) 49.0 45.9 47.1 50.6 42.7 ¹ Adjusted EBITDA excludes gains and/or losses on sales of assets and non-recurring expenses and includes dividends received from non-consolidated affiliates 41.4 33.1 24.1 Platts IODEX Iron Ore Price Average (US$/t) 25.7 31.8
- 11. 10 EBITDA BY BUSINESSSEGMENT¹ US$ million 2Q15 1Q15 2Q14 ¹ Excluding non-recurring items. 82 18 7 Share of Total EBITDA (%)
- 12. 11 ¹ Includes ROMand other ferrous. EVOLUTION OF THE FERROUS MINERALS SEGMENT EBITDA¹ US$ million, 2Q15
- 13. 12 EVOLUTION OF COSTSAND EXPENSES¹ Costs¹ US$ million Expenses1,2 US$ million ¹ Net of depreciation and amortization. ² Includes SG&A, R&D, Pre-operating and stoppage and other expenses. Does not include gain/loss on sale of assets ³ Excludes US$ 230 million of the goldstream transaction. -12.9%-18.5%
- 14. 13 EVOLUTION OF EXPENSES SG&A US$million Pre-operating and stoppage expenses R&D Other expenses¹ 237 195 159 ¹ Includes contingencies, provisions, profit sharing. ² Excludes US$ 230 million of the goldstream transaction. Depreciation 264 264 259
- 15. 14 20.8 18.3 15.8 2Q14 1Q15 2Q15 EVOLUTIONOF IRON ORE FINES CASH COST, FREIGHT AND EXPENSES C1 Cash Cost FOB Port¹ Freight US$/t -24.0% ¹ Ex-ROM. Excludes royalties of US$ 2.4/t in 2Q14, US$ 1.5/t in 1Q15 and US$ 1.2/t in 2Q15. ² Excludes US$ 2.3/t of the bunker oil hedge treated as hedge account. ³ Excludes US$ 2.0/t of the bunker oil hedge treated as hedge account. -27.9% Expenses -25.0%
- 16. 15 ¹ Adjustment asa result of provisional prices booked in 1Q15 at US$ 51.4/t. ² Weighted average difference between prices provisionally set at the end of 2Q15 at US$ 54.5/t based on forward curves and the US$ 58.4/t from the 2Q15 IODEX. PRICE REALIZATION – IRON ORE FINES US$/t, 2Q15 Impact of pricing system adjustments US$/t 58.4 1.3 0.8 0.4 1.0 1.1 1.4 61.6 6.1 4.9 50.6 - 7.8
- 17. 16 IRON ORE PRICINGSYSTEMS Impact of Pricing Mechanisms US$ / t ¹ Provisional prices were settled at US$ 54.5 /t at the end of 2Q15. Pricing System Breakdown % Provisional - prior quarter Lagged Current Provisional - current quarter -4.9
- 18. 17 Operational performance Financial performance Capital expenditures Capital structure DOCUMENT CONTENT
- 19. 18 EVOLUTION OF CAPITALEXPENDITURES US$ million -14.1%
- 20. 19 PROJECT PROGRESS INDICATORS 2Q15 Project Capacity Mtpy Estimated start-up Executedcapex US$ million 2015 Total Estimated capex US$ million 2015 Total Physical progress Carajás Serra Sul S11D 90 2H16 568 4,060 1,321 6,878² 67% CLN S11D 230 (80¹) 1H14 to 2H18 924 3,577 2,375 9,484² 41% Cauê Itabiritos 24 (4¹) 2H15 139 825 350 1,317³ 86% CSP4 1.5 1H16 - 1,055 185 1,2244 87% Moatize II 11 2H15 289 1,673 629 2,068 93% Nacala corridor5 18 2H14 431 3,324 648 4,444 89% ¹ Net additional capacity ² Original capex budget for S11D of US$ 8.089 billion and for CLN S11D of US$ 11.582 billion ³ Original capex budget of US$ 1.504 billion 4 Original capex of US$ 2.734 billion; out of the original capex – US$ 1.491 billion financed directly by CSP project. 5 Completion of the greenfield sections of the Nacala corridor occurred in 4Q14 while brownfield section 7 (500Km) is still being upgraded.
- 21. 20 Operational performance Financial performance Capital expenditures Capital structure DOCUMENT CONTENT
- 22. 21 DEBT POSITION Gross Debt US$million Net Debt Cash position June 30, 2015 3,264
- 23. 22 FINANCIAL INDICATORS¹ Interest coverage- Ratio Net Debt / LTM² EBITDA - Ratio Maturity - years Cost of Debt - % ¹ Ex-Refis ² LTM – last twelve months. Excluding non-recurring items.
- 24.