VALE - Focusing on Strong Operational Drivers as Uncertainty Fades_09Dez13_BBD

8/12/2019 VALE - Focusing on Strong Operational Drivers as Uncertainty Fades_09Dez13_BBD

1/12

1

COMPANYREPORT

ValeUPDATE

BBI Equity Research

Monday, December 9, 2013

VALE(VALE5, VALE US)Mining

Outperform

Target Price:R$49.00, US$20.00Upside:+49%, +31%

Alan Glezer, CFA-55 11 2178 [email protected]

Arthur Suelotto, CFA -55 11 2178 6104

[email protected]

Focusing on Strong Operational Drivers as Uncertainty Fades

The settlement of Vales multi-billion tax dispute is a major milestone. We are,therefore, updating our TP to R$49/share (from R$54/share) to reflect not only thisupdated liability, but also the strengthening of Vales balance sheet after VLI andNorsk Hydro asset sales. Furthermore, despite previous concerns regarding thedeceleration of the Chinese market, the iron ore market surpassed expectations and dailyChinese output has remained at an elevated level. Consequently, iron ore prices sustainedan average of US$135/t for 2013 (our estimate was US$122/t) thus leading us to calibratethe curve to reflect the upward shift. Lastly, Vale did an outstanding job in trimmingcosts in a sustainable way and it is adhering to a conservative capex approach(justifying the incorporation of the strategies into our models). Given the clearer

skies ahead and Vales above-average multiple discount versus its global peers, weare currently more positive about the company and keeping our Outperform rating.

Iron ore inventories at Chinese ports are increasing, but still below the level that ledto the price collapse in Aug. 2012. The price scenario remains favorable as the winterusually curbs Chinese production (year-end) and imports accelerate. Meanwhile, dailyChinese steel output remains above 2mn tons per day while rebar prices recently tradedabove US$585/t (an eight-month high) supported by a low inventory level (three-year low).Our iron ore price forecast for 2014 was updated to US$120/t from US$110/t.

Vale announced its capex plan for 2014 (US$14.8bn), which was the thirdconsecutive decrease of its annual budget. The company expects to deploy US$9.8bnto develop projects, with an intense focus on major projects, such as: Carajas (35%),Moatize/Nacala (28%), Itabiritos (11.5%), a distribution network (5%) and Salobo II (4%).

Meanwhile, sustaining capex was further reduced to US$4.5bn (from US$4.8bn) and thereis room for a further contraction of US$107mn (a non-recurrent ERP implementation cost).

Settling the tax liability was an important achievement and the decision removed amajor source of uncertainty. The substantial discount (axing 50% from R$45bn, equalingR$22.3bn) was a positive surprise, and translates into a NPV liability of R$14.4bn (aboveour previous provision of R$7.5bn). Despite the negative impact of the upwardadjustment, we believe this settlement removes a significant burden.

Vale successfully delivered key projects in 2013, such as Carajas 40, CLN150,Conceicao Itabiritos, Teluk Rubiah (distribution center), Long Harbour and Totten.Despite concluding the works at CLN150, the railway capacity will be limited to 128mtpydue to changes in planning and this will curtail the upside of Carajas 40 for the short term.When Teluk Rubiah starts up in 4Q13, Vale will be able to optimize its logisticsinfrastructure by using Valemax ships and cargo redistribution techniques.

Overall, Vales current valuation is attractive as favorable operational drivers(resilient iron ore prices and a depreciated BRL) are combining with focused growthprospects. The settlement of its tax liability removes the most important uncertainty, whilethe only remaining non-operational risk is the mining code (and the possible inclusion of aspecial participation tax). Nevertheless, the new mining code should only be votedupon after 2014s elections so this will not have an impact in the short run.

Bradesco Corretora Av. Paulista, 1.450 7 floor Sao Paulo Brazil 55 11 3556-3001

Bradesco S.A. Corretora de Ttulos e Valores Mobilirios (Bradesco Corretora) does and seeks to do business with companies covered in its research reports. As a result, investors should be aware thatBradesco Corretora and its affiliates may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision.For full disclaimer and definitions, please refer to the end of this report.

(BRL mn) 2012A 2013E 2014E 2015E Key Figures 6-Dec-13

EPS (R$) 4.14 4.81 6.51 6.01 Local price 32.95

Net earnings 21,126 24,530 33,234 30,645 ADR 15.25

EBITDA 36,048 48,764 52,930 56,322 Price range - 52 weeks (BRL) 25.52-43.09

Shareholders' equity 166,101 169,694 191,296 211,216 Shares outstanding (mn) 5,102.90

ROE% 12.72% 14.46% 17.37% 14.51% 3-month ADTV (R$mn) 481.2

P/E 7.96 6.85 5.06 5.49 Market cap (R$mn) 168,140

EV/EBITDA 6.37 4.71 4.34 4.07 EV (R$mn) 229,470

P/BV 1.01 0.99 0.88 0.80 Net debt (R$mn) 50,015

Dividend yield 6.84% 7.95% 6.85% 6.32% Net debt/EBITDA (LTM) 1.16

70

75

80

85

90

95

100

105

110

115

120

Dec-12 Feb-13 Apr-13 Jun-13 Aug-13 Oct-13 Dec-13

Ibovespa Vale PNA


2/12

2

COMPANY REPORTBBI Equity Research Monday, December 9, 2013

Iron Ore Market: Healthier Price Outlook and Lower Volatility

Despite increasing fears of a more accentuated deceleration in Chinese growth,

iron ore prices are showing an astonishing degree of resilience.Currently trading

just slightly below US$140/t, the price trajectory has been a positive surprise that is

surpassing previous expectations for 2013. For instance, our estimate was US$122/t,

while the actual average has been around US$135/t (11% above the forecast).

Rebar prices currently lack the support to go above US$585/t as the winter in China

typically curbs the demand at the end of the year and thus caps prices. Meanwhile,

rebar inventories held by Chinese traders have reached a three-year low at 5.18mn tons

(Mysteel data), thus limiting the potential downside. Even though current rebar prices are

still considerably below last years average (US$628/t), the daily steel output has been

reasonably strong at above 2.1mn tons per day and the latest data still shows strong

momentum (Novembers average came in at 2.14mn tons per day).

Figure 1: Iron Ore Prices vs. Rebar Prices (US$/ton)

Source: Bloomberg

Chinese steelmakers remain reluctant to accept higher iron ore prices for imported

ore (above US$135/t), but it seems inevitable considering the limited domestic iron

ore production during the winter season. The inventory of iron ore at Chinese ports is

still rising and reached 87.4mn in the last week of November. Nevertheless, stocks are

considerably below the 100mn tons seen in September 2012 before the collapse of iron

ore prices when it traded below US$90/t.

Figure 2: Iron Ore Price - Volatility

Source: Bloomberg

Iron ore price volatility continues to be on a downtrend as the addition of new low

cash-cost supplies limit the room for price hikes, while cost inflation and

deterioration of Chinese mines clearly creates a solid floor for prices. We believe

that this is indeed a favorable scenario, and there is room for further price improvement

ahead of the Chinese New Year in 2014. At the beginning of December, the Chinese

government is expected to discuss urbanization plans that could include a new target of a

60% rate for 2020 (from the current 52%).

450

500

550

600

650

700

750

800

850

80

100

120

140

160

180

200

Jan/10

Feb/10

Mar/10

Apr/10

May/10

Jun/10

Jul/10

Aug/10

Sep/10

Oct/10

Nov/10

Dec/10

Jan/11

Feb/11

Mar/11

Apr/11

May/11

Jun/11

Jul/11

Aug/11

Sep/11

Oct/11

Nov/11

Dec/11

Jan/12

Feb/12

Mar/12

Apr/12

May/12

Jun/12

Jul/12

Aug/12

Sep/12

Oct/12

Nov/12

Dec/12

Jan/13

Feb/13

Mar/13

Apr/13

May/13

Jun/13

Jul/13

Aug/13

Sep/13

Oct/13

Nov/13

Dec/13

Iron Ore (Platts, US$/ton) - lhs

Rebar (US$/ton) - lhs

5%

10%

15%

20%

25%

30%

35%

40%

Jan/10

Feb/10

Mar/10

Apr/10

May/10

Jun/10

Jul/10

Aug/10

Sep/10

Oct/10

Nov/10

Dec/10

Jan/11

Feb/11

Mar/11

Apr/11

May/11

Jun/11

Jul/11

Aug/11

Sep/11

Oct/11

Nov/11

Dec/11

Jan/12

Feb/12

Mar/12

Apr/12

May/12

Jun/12

Jul/12

Aug/12

Sep/12

Oct/12

Nov/12

Dec/12

Jan/13

Feb/13

Mar/13

Apr/13

May/13

Jun/13

Jul/13

Aug/13

Sep/13

Oct/13

Nov/13

Dec/13

Iron Ore Price Volatility - (Daily, Rolling 3M)


3/12

3


Figure 3: Iron Ore Historical Prices and Our Forecasts

Source: Bloomberg, Bradesco Corretora

Figure 4: Iron Ore Prices Our Forecasts Old vs. New

Source: Bloomberg

In light of the new developments, we are revisiting our iron ore price curve

forecast. While we remain skeptical about the supply/demand balance in a scenario

where there is a more accentuated deceleration in Chinese iron ore demand, we

believe that this shock will not occur in the near future.Considering the strength of

the Chinese daily steel output and the iron ore price dynamic in 2013, we are applying an

upward shift in the iron ore price curve. For instance, we have updated our iron ore price

for 2014 to US$120/t in this revision (from US$110/t).

Figure 5: Iron Ore Price in BRL/ton

Source: Bloomberg, Bradesco Corretora

Settlement of Tax Disputes: The End of the Imbroglio

Vale decided to participate in the federal tax settlement program (REFIS) to pay

amounts related to Brazilian corporate income tax (IR) and social contributions

(CSLL) on net income from its foreign subsidiaries for 2003-2012.The total amount

was estimated at R$45bn,a value composed of the principal of R$17.1bn; R$9.8bn in

penalties; R$12.0bn of interest and interest on penalties, as well as R$6.1bn in statutory

fees.Out of the options provided by REFIS, Vale selected to pay the principal taxes

upfront for 2003, 2004 and 2006, and to pay in installments (principal, penalties and

interest) for the remaining years 2005 and from 2007 through 2012. This decision

resulted in an estimated NPV of R$14.425bn and a face value for payments of

R$22.235bn (including a principal of R$16.286bn, R$1.565bn in penalties, and

R$4.474bn in interest and interest on penalties). Vale paid ~R$6bn at the end of

November and now has another ~R$16.4bn to be paid in 179 monthly installments that

will be adjusted based on the Selic interest rate. The company highlighted that payments

140

112109

106 103

120

110105

10095

-100

-50

0

50

100

150

200

250

300

80

100

120

140

160

180

200(Supply -D emand) in mn tons (rhs)

Iron Ore Price Forecast - adjusted by inflation (US$/ton, CIF China - lhs)

Iron Ore Price Forecast - nominal (US$/ton, CIF China - lhs)

120

Year OLD NEW Variation (%)

2013 120 135 +13%2014 110 120 +9%2015 100 110 +10%2016 95 105 +11%2017 92 100 +9%2018 90 100 +11%2019 88 90 +3%

2020 88 90 +3%

Iron Ore Price Forecast - US$/ton

80

90

100

110

120

130

140

2013 2014 2015 2016 2017 2018 2019 2020

OLD NEW

170

190

210

230

250

270

290

310

330

350

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Iron Ore Price Forecast - adjusted by inflation (R$/ton, CIF China -lhs)


4/12

4


will be funded by operating cash flow, without requiring any additional debt. It is

important to highlight that we had a provision of R$7.5bn in our model for this tax

dispute settlement, and now adjusted it to reflect the current amount of R$14.4bn.

Furthermore, we emphasize that Vale adequately prepared its balance sheet for

this kind of settlement after selling VLI (35.9% for R$2.7bn) and its Norsk Hydro

position (for R$4.2bn).

Figure 6: Tax Settlement Discount Details and Actual vs. Provisioned

Source: Company

New Capex Plan: Further Reduction to US$14.8bn in 2014

Vales Board of Directors has approved its investment budget for 2014. This was

reduced for the third time in a row to a total amount of US$14.8bn (versus

US$15.5bn in 2013e), after peaking at US$18bn in 2011. The company reiterated its

focus on capital efficiency through the creation of a smaller portfolio of projects with high

risk-adjusted expected returns.Such a strategy is justified by the fact that more than

80% of the budget for project execution, which totals R$9.3bn, is dedicated to core

projects such as expanding the iron ore production and distribution network(Carajs/Itabiritos), developing the integrated mine-plant-railway-port coal

operations in Mozambique (Moatize/Nacala), and the Salobo copper project.

Figure 7: Evolution of Capex Breakdown and Project Budget Division

Source: Company

The sustaining capex budget was reduced to US$4.5bn for 2014 from US$4.8bn in

2013, which represents 4.7% of the asset base, lower than the average ratio of 4.9%

during the last three years. Sustaining capex basically provides funding for five classes

of initiatives: operations, made up of mainly equipment replacements; building andexpanding waste dumps and tailings dams; health & safety issues; corporate social

responsibility (CSR); administration and others. There is the potential for a further

reduction going forward, as the abovementioned total considers a non-recurring

expense of US$107mn related to an ERP implementation project.

Principal, R$17.1 bn

Principal, R$16.3 bn

Penalties/Fees, R$ 15.9 bn

Penalties/Fees, R$ 1.6 bn

Interest, R$12.0 bn

Interest, R$4.5 bn

0

5

10

15

20

25

30

35

40

45

50

Total After Discounts

R$ 14.4 bn

R$ 7.5 bn R$ 7.5 bn

R$ 6.9 bn

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

Settlement NPV Provision in the Model Increase in provision

11.7 11.69.8 9.3

13.6

10.4

4.64.6

4.84.5

4.5

4.5

1.7 1.5

0.90.9

0.9

0.9

0

5

10

15

20

25

2011 2012 2013E 2014E 2015E 2016E

R&D Sustaining Projects

CarajsExpansion

35%

Itabiritos11%

Logistics5%

MoatizeII/Nacala

28%

Salobo II4%

Others

17%


5/12

5


Figure 8: Sustaining Capex Breakdown and Evolution

Source: Company

R&D expenses should remain broadly stable in 2014 compared to the expected

final standing of 2013 of US$0.9bn. Nevertheless, a reduction in R&D can be

observed since 2012, especially due to decreasing feasibility studies expenses, a

downtrend that is a direct result of the companys increased focus on its key

projects. The budget for 2014 is comprised of US$384mn to be used for mineral

exploration, US$356mn for feasibility studies, and US$163mn to be invested in

technological innovation and adaptation.

Figure 9: R&D Expenses Breakdown and Evolution

* Rolling 12M ending in September 30, 2013.Source: Reuters

Revisiting Supply/Demand Balance: Delaying Oversupply

Although concerns about the Chinese growth deceleration could have sparked a

sequence of project cancelations, it appears that such fears are fading away.We

continue to believe that a substantial amount of projects will reach the market in the

coming years, although delays have been more significant than previous expectations.

According to our estimates, supply could grow to 1.6bn tons in 2020 (from the 1.2bn tons

currently), considering an annual depletion rate of 50mn tons each year. Furthermore, it

is important to notice that a substantial amount of new projects are located in Brazil or

Australia, and in either the first or second quartiles of the cash-cost curve.

Figure 10: Iron Ore Supply Forecast

Source: Companies and Bradesco Corretora

1,427

644

507

140

365174424

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Ferrous Minerals Base Metals Fertilizers Coal

Operation s Waste Health /Safety CSR Adm./Oth ers

US$ 399mn US$ 179mn

US$ 1,023mn

US$ 2,897mn

210 140 163

731

548 356

592

426

384

0

200

400

600

800

1000

1200

1400

1600

1800

2012 2013* 2014E

Mineral Exploration Feasibil ity Studies Technological Innovation

Iron Ore Miners Current 2013 until Supply Forecast

(supply study) Capacity 2020 (mn tons)

VALE 322 160 482Rio Tinto 259 205 464Other 196 177 373BHP Billiton 186 9 195Fortescue 100 55 155Arcelor 54 27 81Kumba 53 17 70CSN 28 55 83MMX 7 22 29Gerdau 7 12 18

Usiminas 1 21 21Anglo American 27 27Bamin 20 20Supply before Depletion 1,212 806 2,018Depletion -400Supply Forecast 1,212 806 1,618

Cost Curve:

Iron Ore CFR - China2013

Cost Curve:

Iron Ore CFR - China2020

Bradesco: Iron Ore Price

Forecast 2020

0

20

40

60

80

100

120

140

160

180

200

5 105 205 305 405 505 605 705 805 905 1005 1105 1205 1305 1405 1505

Excess supply of

300 mn tons in2020,putting

pressure on prices


6/12

6


Demand growth has been healthy this year, and Chinese iron ore imports

expanded 10% YoY when comparing the data up until October 2013.The demand

adjustment related to the rebalancing of the Chinese economy - from investment-driven

to consumption-driven growth - seems further away and we have therefore postponed the

demand contraction to 2017-18 (from in 2016 previously). The delay in oversupply

expectations is behind our upward adjustment of the iron ore price curve (+8% higher on

average). Indeed, by incorporating the above-mentioned details, even if we accept thatdemand should increase by 100mtpy, this might be insufficient to absorb the supply

expansion of more than 400mtpy (ex-depletion).

Figure 11: Iron Ore Demand Forecast

Source: Reuters

Pending Disputes: Only the New Mining Code Remains

After a resolution of the tax dispute, the main pending issue that could impact Vale

will be the resolution of the new mining code.The Brazilian government prepared a

first draft of the new rules to be applied in the market that was disclosed and sent to the

Brazilian Congress in June. This initial version contained the following points that raised

some worries among market players: i) royalties should increase to 4% from 2% and this

should be charged on gross instead of net revenues (as is currently done); ii) changes in

methodology for concessions, with the implementation of an auction process, similar towhat exists in the oil & gas sector; iii) more regulations regarding the development of

concession (time limit); and iv) inclusion of a special participation tax (between 2% and

10%) to be charged on top of an EBITDA proxy of highly-profitable mines.

Figure 12: Mining Codes in Various Countries

Source: Bradesco Corretora

Due to some of the aforementioned points, Congressman Leonardo Quinto, the

projects sponsor in the Brazilian lower house, proposed a friendlier alternativecode that was presented in November.In terms of the main differences, this second

version excludes the implementation of the auction process, restoring the first-come

preferentiality, and defines Royalties as a fixed ratio, instead of a variable one. The

mining code was supposed to be voted upon by Congress on December 10,

however, since the executive disagreed with the amended points, and an accord

with the Deputies has not yet been reached, voting on the mining code has been

delayed. With the elections coming in 2014, we believe it is likely that voting on the

new mining code will only occur in 2015.

Demand (mn tons) Demand Growth YoY (%)

Asia Asia

China (Jpn, SK and Twn) Europe Others TOTAL China SK and Europe Others TOTAL

2013e 804 300 120 53 1,277

2014e 844 306 121 55 1,327 2014 +5 % +2 % +1 % +5 % +4 %

2015e 886 312 122 58 1,379 2015 +5 % +2 % +1 % +5 % +4 %

2016e 904 318 124 61 1,407 2016 +2 % +2 % +1 % +5 % +2 %

2017e 859 325 125 64 1,372 2017 -5 % +2 % +1 % +5 % -2 %

2018e 773 331 126 67 1,297 2018 -10 % +2 % +1 % +5 % -5 %

2019e 792 338 127 70 1,328 2019 +2 % +2 % +1 % +5 % +2 %

Iron Ore Australia Brazil Canada S. Africa India Ukraine Russia China

Royalties 3% to 7.5% 2% 2%-13% 0.5% - 7% 10% ~1% 4.80% 2%Exports 495 355 50 40 35 20 10 0

Extra

New code:increase

royalties to4%-6%

Imposesexport tax of

30% on ironore


7/12

7


Caves: Mitigating Risks

The cave issues have always represented a burden on the Brazilian mining

industry. Caves were considered to be property of the Union in the 1988 Federal

Constitution and exploring of any these sites has been restricted ever since. After

pledges from the mining sector and more than 20 years of unclear legislation, it was

declared that the caves could be declassified according to their environmental and

cultural importance, from maximum to high, medium and minimum relevance.Those with

maximum importance will never be explored by miners, while the others may be

only explored after compensation is paid.

Figure 13: Caves Regulation Milestones

Source: Company and Bradesco Corretora

This classification process is usually a complicated one as it has to be extended for at

least a one-year period (both dry and wet seasons have to be considered). Vale has over

200 caves yet to be classified. The process is usually simpler for new projects and

S11D represents a successful example. Vale obtained the environmental permit for

S11D that was already complying with existing cave legislation, and therefore not

representing an unplanned risk for the project. A total of 137 caves were preserved.

Base Metals: Copper Time to Reap Rewards

During 2013, Vale managed to successfully ramp up the Salobo projects phase 1

and production should reach 69k tons. Furthermore, the second phase is expected

to start in mid-2014 and should double production when the expansion is

concluded.Considering Salobos cash cost of US$0.95/lb (first quartile), it assures the

profitability even with a challenging price outlook. Prices have remained above US$3/lb

since 2010, thus we believe it is fair to assume that Vale could reach an EBITDA margin

of between 40% and 50%. Given these assumptions, Vale should generate EBITDA

of almost US$1bn once the operation is running at its full capacity utilization.

Figure 14: Copper Historical Prices

Source: Reuters

Year Publication Details

1988 Federal Constitution Natural caves are property of the Union

1990 99.556/1990 Federal Decree Natural caves and areas of influence are national heritage site

2008 6.640/2008 Federal Decree Criteria, restrictions and compesation for irreversible impacts on caves

2009 Environmental Agency Instruction Cave classification criteria

2012 Environmental Agency Instruction Compensation procedures for regular and high relevance caves

Caves legal regulation milestones

2.50

3.00

3.50

4.00

4.50

5.00

Copper (US$/lb)


8/12

8


Valuation: Time to Price Operational Drivers instead of Disputes

To arrive at our final TP of R$49/share for VALE5 (US$20/share for VALE US), we

have evenly blended our multiple-based valuation of R$51.40/share with a DCF-

based valuation that points to a reasonably attractive TP of R$46.90/share. We

believe the market is exaggerating the current discount between Vale and its comparable

peers, such as Rio Tinto and BHP Billiton. Vale has historically traded at an averagediscount of 6% to the Australian miners, a number that has been stretched to the current

value of 22%. Even though Vale struggled for a long time with uncertainties brought up by

the REFIS and still faces potential risks evolving the new mining code, we acknowledge

that there is room for this comparable discount to shrink back to normal levels. Combining

both methodologies, we believe it is fair to reiterate our Outperformrating for Vale.

Figure 15: Vales Multiple vs. Peers

Source: Bloomberg

Although we have assumed a historical multiple of 6.0x, by looking at the current

stock price we can see that it is trading at below the target multiple. It is worth

adding that we have adjusted the provision for the tax dispute from the previous

US$7.5bn, to the project net present value of US$14.4bn. Also, we incorporated the

impact of the Norsk Hydro sale of R$4.2bn.

Figure 16: New vs. Old Estimates

Source: Bradesco Corretora estimates

Our DCF-based valuation uses a WACC of 11.5% and long-term growth of 6%. We

are assuming iron ore prices at US$100/t from 2017 onwards.We assume Iron ore

and pellet capacities should increase to 446mtpy in 2018, and Moatize and Salobo ramp-

ups should enter primarily in 2015-2016.

Figure 17: Estimates for Sales Volumes

Source: Bradesco Corretora estimates

3

4

5

6

7

8

9

10

11

EV/EBITDA (VALE)

EV/EBITDA (BHP)EV/EBITDA (RIO)

Estimates New

vs. Old Old New % Old New % Old New % Old New %

Net Revenues 106,486 104,416 -1.9% 108,476 114,541 5.6% 113,300 127,652 12.7% 130,983 147,013 12.2%

COGS 51,142 55,174 7.9% 56,144 60,428 7.6% 66,653 71,791 7.7% 77,957 89,952 15.4%

EBITDA 50,446 48,764 -3.3% 48,195 52,921 9 .8% 45,087 57,609 27.8% 52,246 59,746 14.4%

EBITDA Margin 47.37% 46.70% -0.67 p.p. 44.43% 46.20% 1.77 p.p. 39.79% 45.13% 5.34 p.p. 39.89% 40.64% 0.75 p.p.

CAPEX 34,694 32,458 -6.4% 33,454 34,235 2.3% 34,043 47,026 38.1% 34,870 43,364 24.4%

2013 2014 2015 2016

Sales 2013 2014 2015 2016 2017 2018 Total

Iron Ore (mn tons) 265 302 +37 312 +10 327 +15 342 +15 402 +60 +137Pellets (mn tons) 40 44 +4 44 +0 44 +0 44 +0 44 +0 +4Copper (k tons) 356 429 +74 543 +114 615 +72 635 +20 635 +0 +279Coal (mn tons) 8 12 +4 19 +7 29 +11 33 +4 37 +4 +29Nickel (k tons) 250 276 +26 304 +28 347 +43 360 +13 360 +0 +110Fertilizers (mn tons) 9 9 +0 9 +0 9 +0 9 +0 9 +0 +0


9/12

9


Key Figures - VALEI n c ome S t a t eme nt

BRL million 2 0 12 2 0 13 2 0 14 2 0 15 2 0 16 2 0 17 2 0 18

Gross R evenues 9 0 ,9 53 10 6,556 116 ,8 74 13 0,0 91 14 7,3 05 156 ,6 23 175,53 6

Taxes and discounts -2,065 -2,140 -2,348 -2,613 -2,959 -3,146 -3,526

Net R evenues 8 8 ,8 8 8 10 4 ,4 16 114 ,52 6 12 7,4 78 14 4 ,3 4 6 153 ,4 77 172 ,0 10

Cost of goods/services sold -47,374 -55,174 -60,404 -72,905 -88,076 -94,335 -111,398

Gross Pro f i t 4 1,514 4 9 ,2 4 2 54 ,12 2 54 ,573 56 ,2 70 59 ,14 2 6 0 ,6 12Sales and Administrative expenses -4,383 -2,852 -3,055 -3,227 -3,415 -3,576 -3,767

Other expenses -19,372 -7,878 -8,396 -8,816 -9,257 -9,673 -10,109

EB IT 17,759 38 ,511 4 2 ,6 71 4 2 ,53 0 4 3 ,59 8 4 5,8 9 3 4 6 ,73 7

EB ITD A 2 6 ,157 4 7,59 5 52 ,10 2 55,4 9 4 58 ,13 5 6 4 ,4 59 6 8 ,6 8 0

Equity income 1,240 1,031 1,031 1,031 1,031 1,031 1,031

Financial income/expense -8,405 -9,496 -2,160 -2,701 -3,337 -3,626 -2,006

Op erat ing income 10 ,59 4 3 0 ,0 4 7 4 1,54 3 4 0 ,8 6 0 4 1,2 9 3 4 3 ,2 9 9 4 5,76 3

Non-operating result 0 0 0 0 0 0 0

Pret ax income 10 ,59 4 3 0 ,0 4 7 4 1,54 3 4 0 ,8 6 0 4 1,2 9 3 4 3 ,2 9 9 4 5,76 3

Income tax 509 -5,811 -8,309 -10,215 -10,323 -10,825 -11,441

M inority Interest 402 294 0 0 0 0 0

Net earnings 11,50 6 2 4 ,53 0 3 3 ,2 3 4 3 0 ,6 4 5 30 ,9 6 9 32 ,4 74 3 4 ,3 2 2

EB ITD A ( A d just ed ) 3 5,56 5 4 8 ,76 4 52 ,9 3 0 56 ,3 2 2 58 ,9 6 4 6 5,2 8 7 6 9 ,50 8

Net earnings ( A djust ed ) 11,50 6 2 4 ,53 0 3 3 ,2 34 3 0 ,6 45 3 0 ,9 6 9 3 2 ,4 74 3 4 ,3 2 2

Ad just ment s in EB IT DA f or U S GAA P 1,14 3 1,16 3 1,12 8 1,10 0 1,0 76 1,0 66 1,0 35EB ITD A in U SGA A P ( US$mn) 17,0 61 2 1,3 80 2 1,6 70 2 1,6 06 2 2 ,115 2 4,6 13 2 6,3 04

YE FX 1.95 2.16 2.32 2.48 2.54 2.54 2.54

O p e r a t i n g M a r g i n s

2 0 12 2 0 13 2 0 14 2 0 15 2 0 16 2 0 17 2 0 18

Gross M argin 47% 47% 47% 43% 39% 39% 35%

EBIT M argin 20% 37% 37% 33% 30% 30% 27%

EBITDA M argin 29% 46% 45% 44% 40% 42% 40%

Income tax rate 5% -19% -20% -25% -25% -25% -25%

Net margin 13% 23% 29% 24% 21% 21% 20%

Ad justed Net M argin 13% 23% 29% 24% 21% 21% 20%

Ad justed EBITDA M argin 40% 47% 46% 44% 41% 43% 40%

Ba l a n ce Sheet

BRL million 2 0 12 2 0 13 2 0 14 2 0 15 2 0 16 2 0 17 2 0 18

Current + long t erm asset s 6 1,6 02 56 ,9 27 6 0,18 9 6 4,4 46 71,16 5 9 5,9 17 12 5,6 58

Cash + short term investment 12,999 15,770 15,408 15,383 16,679 38,235 62,090

Net receivables 13,885 15,730 17,253 19,204 21,745 23,120 25,912

Inventories 10,320 13,807 15,144 16,856 19,087 20,294 2 2,745

Other 24,398 11,621 12,384 13,003 13,654 14,268 14,910

Permanent asset s 2 05,3 21 2 22 ,8 65 2 54 ,0 08 2 9 3 ,2 12 3 2 7,4 37 3 3 5,59 2 3 44 ,10 2

Tot al asset s 2 6 6 ,9 2 3 2 79 ,79 2 3 14 ,19 7 3 57,6 58 3 9 8 ,6 0 2 4 3 1,50 9 4 6 9 ,759

C ur rent + lo ng t er m l iab ilit ies 110 ,9 6 3 10 7,9 6 5 12 0 ,6 0 4 14 4 ,0 0 4 16 4 ,6 6 7 176 ,3 2 7 19 2 ,118

Accounts payable 9,255 10,219 11,187 13,503 16,313 17,472 20 ,632

Diferred LT debt 0 1,059 1,105 1,133 1,162 1,191 1,218

Total debt ST + LT 61,856 54,799 56,811 70,059 81,203 85,594 90,896

Taxes 664 2,031 5,811 8 ,309 10,215 10,323 10,825

Other 39,188 39,857 45,690 51,000 55,775 61,747 68,548

M inor it y Int erest 3 ,2 4 5 3 ,19 2 3 ,4 0 2 3 ,572 3 ,751 3 ,9 19 4 ,0 9 6

Shareho ld ers' eq uit y 152 ,3 88 16 9,6 94 19 1,2 96 2 11,2 16 2 31,3 46 2 52 ,4 54 2 74 ,76 3

Tot al liab i li t ies 2 6 6 ,59 6 2 80 ,8 51 315,3 0 2 3 58 ,79 1 3 9 9 ,76 4 4 32 ,70 1 470 ,9 78

C a s h f l o w

BRL million 2 0 12 2 0 13 2 0 14 2 0 15 2 0 16 2 0 17 2 0 18

EB IT 17,759 38 ,511 4 2 ,6 71 4 2 ,53 0 4 3 ,59 8 4 5,8 9 3 4 6 ,73 7

Depreciation 8,398 9,083 9,431 12,964 14,537 18,566 21,943

EB ITD A 2 6 ,157 4 7,59 5 52 ,10 2 55,4 9 4 58 ,13 5 6 4 ,4 59 6 8 ,6 8 0

Changes in working capital -3,144 0 -1,889 0 0 0 0

Income tax 509 -5,811 -8,309 -10,215 -10,323 -10,825 -11,441

Capex -33,374 -32,458 -34,235 -47,026 -43,364 -21,619 -25,122

Free cash f low t o t he f irm - 9 ,8 52 9 ,3 2 6 7,6 70 - 1,74 7 4 ,4 4 9 3 2 ,0 15 3 2 ,117

K ey I nd i c a t o r s

2 0 12 2 0 13 2 0 14 2 0 15 2 0 16 2 0 17 2 0 18

EPS 2.2 4 .8 6 .4 5.9 6.0 6 .3 6 .7

P/E 18.4 8.6 6.4 6.9 6.8 6.5 6.2

P/BV 1.4 1.2 1.1 1.0 0.9 0 .8 0 .8

P/Free cash f low -21.4 22.7 27.5 -120.9 47.5 6.6 6.6

Free cash f low yield -5% 4% 4% -1% 2% 15% 15%Net earnings - CAGR 7% -7% -6% 39% 8% 2% n.a.

PEG 263.7 -128.9 -100.0 17.9 84.4 333.5 n.a.

EV/EBITDA 7.4 5.4 5.0 4.7 4.5 4.0 3.8

EBITDA - CAGR 28% 7% 7% 7% 3% 3% n.a.

EV/Sales 3.0 2.5 2.3 2.1 1.8 1.7 1.5

Sales - CAGR 22% 8% 4% 13% 11% 6% n.a.

EVG 26.05 78.51

ROE (f inal) 8% 14% 17% 15% 13% 13% 12%


10/12

10


Analyst Certification

(i)

(ii)

(i)

(ii)

Important Disclosures

1

X 2

X 3

5X

Definition Coverage BR

Expected to outperform the Ibovespa by more than 10%. 49% 96%

Expected to perform in the range of 10% above or below the Ibovespa. 43% 100%

Expected to underperform the Ibovespa more than 10%. 1% 100%

This indicates that both the target price and the rating are currently being revised. 6% 86%

The analyst cannot express his/her view s on the company. 2% 100%

(1)

(2)

4

Bradesco Corretora and/or its affiliates have received compensation for investment banking services fromthe subject company(ies) in the twelve months preceding thedate of publication of theresearch report and/or expects to receive or intends to seek compensation for investment banking services fromthe subject company(ies) in thethree months follow ing the date of this report;

Bradesco Corretoraand/or its aff iliates w ere making a market in the subject companys(ies) equity sec urities at the date of this report;

Any other actual material conflict of interest of Bradesco Corretoraand/or its affiliates know n at the date of this report.

Bradesco Corretora ratings

Percentage of companies w ithin this rating category for w hich [investment banking] services w ere provided w ithin the past 12 months.

Bradesco Corretora research ratings distribution

Market Perform

Underperform

Under Review

Restricted

Percentage of companies under coverage globally within this rating category. As of 12/09/13 Bradesco Corretora had 117 companies under coverage globally.

Bradesco Corretora ratings are constantly revised and any temporary inconsistencies between the upside potential that gave rise to any such rating and the upside potential inconnection w ith the target price are at all times deliberate. The off icial rating shall prevail.

Any differences between the rating and the target price may occur especially due to the analysts expectations to the effect that any short/medium termfactors that cannot be priced-inyet might lead to inconsistencies between Bradeco Corretora valuation and the stock behavior. The factors Bradeco Corretora considered include, but are not limited to: Anyexpectations in connection w ith quarterly results, market conditions, ow nership issues and any expectations involving mergers and acquisitions.

The ratings reflect only the analysts expectation on the future performance of the relevant stock. A Outperform rating does not necessarily represent that the analyst approves ofthe company and its management w hilst a Underperform rating does not necessarily means that the analyst has a negative view on the company. Within Bradeco Corretora coverageuniverse there are sound companies, with good fundamentals as per the market consensus, and fair priced stock, and would not be Bradeco Corretora investment pick.

Price target, rating history chart(s), valuation/method used to determine price target, and our policy for managing conflicts of interest in connection w ith investment research areavailable upon request. You may obtain this information by contact ing your representative or by sending an email to [email protected] om.br.

Price target and rating history

Each analyst responsible for the preparation and content of this report hereby certif ies, pursuant to SEC Regulation AC and applicable laws and regulations of other jurisdic tions, that:

the recommendations indicated in this report solely and exclusively reflect his or her personal opinions, and w ere prepared independently and autonomously, including in relationto Brades co Corretor a and its affiliates;

Company disclosures pursuant to Brazilian securities exchange commission (Comisso de Valores Mobilirios CVM) Instruction 483/10:(i) Banco Bradesco S.A. beneficially owns 5% or more of equity securities issued by Cielo S.A.. Bradseg Participaes Ltda., a subsidiary of Banco Bradesco, indirectly owns 5% ormore of equity securities issued by Fleury S.A.. BRADESPAR S.A., w hose controlling group is comprised of the same shareholders that control Banco Bradesco S.A., indirectly owns5% or more of equity securities issued by VALE S.A.(ii) gora, Bradesco Corretora, Bradesco BBI and Bradesco Group companies have relevant financial and commercial interests in relation to thesubject company(ies) or the subjectsecurity(ies).(iii) Bradesco BBI S.A. is acting as an underwriter in a public offering of equity securities of Unidas S.A. and Via Varejo S.A.. gora and Bradesco Corretora are participating in a publicoffering of equity securities of CVC Brasil Operadora e Agncia de Viagens S.A., of Certificates of Real Estate Receivables of Brazilian Securities Companhia de Securitizao.(iv) Bradesco BBI have managed or co-managed a public offering of equity and/or debt securities for the following companies w ithin the past 12 months: Abril Educao, Aliansce,Banco BTG Pactual, Banco do Brasil, BB Progressivo II - FII, BB Seguridade, Biosev, BHG, BNDESPAR, BR Malls, Bradespar, Brasil Telecom, CART, CEDAE, Chemical VII, ChemicalV III,Colinas, Comgs, CPFL Energias Renovveis, Daycoval, EcoRodovias, Ecovias, Embratel, Equatorial, Estcio, FII BTG Pactual Corporate Office Fund, Fleury, Gafisa, Gvea CrditoEstruturado (FIDC), Iguatemi, JBS, Marfrig, MPX, Multiplan, OAS, OI, Petropar, Razen Energia, Restoque (Le Lis Blanc), Rodobens, Sabesp, Smiles, Vale and Vix Logstica. BBI alsoacted as a f inancial advisor for Alpargatas in the deal with Osklen.(v) gora and/or Bradesco Corretora participated in the public offering of equity and/or debt securities for the follow ing companies w ithin thepast 12 months: Abril Educao, Aliansce,

Alupar, Autoban, BNDESPAR, Banco BTGPactual, BB Progressivo II - FII, BB Seguridade, Biosev, BHG, Comgs, CPFL Energias Renovveis, Equatorial, Estcio, Fator IFIX - FII, FII BTGPactual Corporate Office Fund, FII - General Shopping Ativo e Renda, Fator Verit FII, Fibria, FII BrasilPlural Absoluto Fundo de Fundos, FII TB Office, FII TRX, Iguatemi, Iochpe Maxion,

GAEC Educao, Linx, Marfrig, Minerva, Multiplan, Rio Bravo Crdito Imobilirio II - FII, Rodovias do Tiet, Santander Agncias FII, Senior Solution, SDI Logstica Rio - FII, Ser Educacional,Smiles, SP Downtow n - FII, Tringulo do Sol, Tupy and XP Corporate Maca - FII.(vi) Bradesco Corretora receives compensation for making a market in the equity securities of Alpargatas (ALPA4) and Odontoprev (ODPV3). Bradesco receives compensation formaking a market in the in the f ixed income securities of BNDESPAR and USIMINAS, and shares of Fundo Imobilirio BB Progressivo II.

Rating

Outperform

the view s expressed herein accurately and exclusively reflect his or her personal views and opinions about the subject company(ies) and its or their securities;

no part of his or her compensation w as, is, or w ill be paid directly or indirectly, related to the specific recommendation or views expressed by that analyst inthis report; andpursuant to Brazilian securities exchange commission (Comisso de Valores Mobilirios CVM) Instruction 483/10:

his or her compensation is based on the prof itability of Bradesco Corretora and its aff iliates, which includes investment banking revenues;

Company-specific regulatory disclosures

Bradesco Corretora and/or its affiliates have managed or co-managed a public or Rule 144A offering of the subject companys(ies) securities in the twelve monthspreceding the date of this report;

Bradesco Corretora and/or its affiliates beneficially own one percent or more of any class of common equity securities of the subject company(ies). This positionreflects information available as of the business day prior to the date of this report;


11/12

11


Additional Disclosures

(i)

(ii)

(iii)

(iv)

(v)

General Disclosures

1)

2)

3)

4)

5)

6)

7)

are persons to w hom an invitation or inducement to engage in investment activity (w ithin the meaning of section 21 of the Financial Services and Markets Act 2000) in connectionw ith the issue or sale of any securities to w hich this report relates may otherwise law fully be communicated or caused tobe communicated(all such persons together beingreferred to as "relevant persons").

This report is directed only at relevant persons and must not be acted on or relied on by persons w ho are not relevant persons. Any investment or investment activity to whichthisreport relates is available only to relevant persons and will be engaged in only w ith relevant persons. No public offer of any securities to w hich this report relates is being made byBradesco UK or Bradesco Corretora in the United Kingdom or elsew here in the European Economic Area.

United States: This report is distributed in the United States by Bradesco Securities Inc. Bradesco Securities Inc., a U.S. registered broker-dealer and a w holly-owned subsidiary of

Banco Bradesco S.A., is a member of FINRA/SIPC. All U.S. recipients of this report w ishing to effect transactions in securities discussed should contact and place orders throughBradesco Securities Inc. at (212) 888-9141.

are persons that are eligible counterparties and professional clients of Bradesco UK;

The following disclosures are required under or based on the law s of the jurisdiction indicated, except to the extent already made above w ith respect to United States law s andregulations. Brazil: This report is distributed in Brazil by Bradesco Corretora. Any investor in Brazil who receives this report and wishes to conduct transactions with stocksanalyzed herein should contact and request execution of orders through Bradesco Corretoraat (55 11) 3556-3001.

United Kingdom and European Economic Area: In the United Kingdom and elsewhere in the European Economic Area, this report may be made or communicated by BradescoSecurities UK Limited ("Bradesco UK"). Bradesco UK is authorized and regulated by the Financial Services Authority and its registered office is at: 20-22 BedfordRow, London, WC1R4JS. This report is f or distribution only to persons w ho:

are outside the United Kingdom, or

have professional experience in matters relating to investments falling w ithin Article 19(5) of theFinancial Services and Markets Act 2000 (Financial Promotion) Order 2005 (asamended, the "Financial Promotion Order");

are persons falling w ithin Ar ticle 49 (2) (a) to (d) ("high net w orth companies, unincorporated associations etc") of the Financial Promotion Order;

With the exception of investment company funds, Bradesco Corretoras internal policy prohibits ownership of securities in their respective area of coverage to analysts as w ell as tothe associates reporting to the analysts. Analysts are paid in part based on the profitability of Bradesco Corretora and its affiliates, which includes investment banking revenues.Bradesco Corretorapolicy prohibits its analysts and associates reporting to the analysts fromserving as an officer or director, advisory board member or employee of any company inthe analysts area of c overage.

Bradesco Corretora has no officers (or persons performing similar functions) or employees in common w ith Bradesco Securities, Inc. In addition, Bradesco Securities, Inc. maintainsand enforces w rittenprocedures reasonably designed to prevent Bradesco Securities, Inc., any controlling persons, officers (or persons performing similar functions), and employeesof Bradesco Securities, Inc. from influencing the activities of the analyst w ho prepared this research report and the content of this research report prepared by said analyst.

The non-US research analysts are not associated persons of Bradesco Securities, Inc. and therefore may not be subjectto the NASD Rule 2711 and NYSE Rule 472 restrictions oncommunications w ith a subject company, public appearances and trading securities held by a research analyst account.

Hong Kong: In Hong Kong, this report may be distr ibuted by Bradesco Securit ies Hong Kong Limited (Bradesco HK). Bradesco HK is licensed by the Securit ies and FutureCommission (SFC) to carry on Type 1 and Type 4 regulated activities as defined in the Securities and Future Ordinance (Cap. 571 of the Law s of Hong Kong) (SFO) in Hong Kong,subject to condit ions published on the website of the SFC from time to t ime. Except for Bradesco HK, none of its af f iliates, inc luding Bradesco Corretora, carry out or islicensed/authorized to carry out any regulated activities as defined in the SFO in Hong Kong and each of these affiliates is prohibited from carrying on any regulated activities, includingbut not limited to dealing in securities and advising in securities (as defined in the SFO), in Hong Kong. This report is directed to you by Bradesco HK based on your interest andpreference in therelevant underlying securities that you have previously communicated to Bradesco HK. You agree that this report is not intended for the promotion of any services orproducts of any of Bradesco HKs affiliates in Bradesco group, including those of Bradesco Corretora. All Hong Kong recipients of this report w ishing to effect transactions insecurities discussed should contact and place orders through Bradesco HK at (852) 22518716 or (852) 22518718.This report is intended for distribution only to non-Hong Kong residents or professional investors as defined in the SFO. It is provided solely for informational purposes and do not

constitute an of fer to buy or s ell or a solicitation of an of fer to buy or s ell any security , product, service or inves tment to the public within the meaning of the Companies Ordinance (Cap.32 of the Law s of Hong Kong) or to professional investors w ithin the meaning of the SFO. It has not been review ed by the SFC or any regulatory author ity in Hong Kong.

Other Countries: This report, and the securities discussed herein, may not be eligible for distribution or sale in all countries or to certain categories of investors. In general, thisreport may be distributed only to professional and institutional investors.

No portion of this document may be (i) copied, photocopied or duplicated in any form, or by any means, or (ii) redistributed without prior consent from Bradesco

Corretora.

Any additional information may be obtained by contacting your representative or by sending an email to [email protected]

This report has been prepared solely byBradesco Corretoraand is being provided exclusively f or informational purposes. The information, opinions, estimates and projectionsconstitute the judgment of the author as of the current date and are subject tomodifications w ithout prior notice. Bradesco Corretora has no obligation to update, modify oramend this report and inform the reader accordingly, except w hen terminating coverage of the issuer of the securities discussed in this report.

This report, including the estimates and calculations ofBradesco Corretora, is based on publicly available information that it consider reliable, but it do not represent it isaccurate or complete, and should not be relied upon as such.

This report is not an offer or a solicitation for the purchase or sale of any financial instrument. It is not intendedto providepersonal investment advice and it does not take intoaccount thespecific investment objectives, financial situation and theparticular needs of any specific person w ho may receive this report. Investors should seek financial adviceregarding the appropriateness of investing in any securities, other investment or investment strategies discussed or recommended in this report and should understand that

statements regarding future prospects may not be realized.Investors should note that income fromsecurities or other investments, if any, referred to in this report may fluctuate and that price or value of such securities and investmentsmay riseor fall. Accordingly, investors may receive back less than originally invested. Past performance is not necessarily a guide to future performance. Bradesco Corretoraand its affiliates do not accept responsibility for any direct or indirect loss arising due to use of this report. Investors should consider w hether any advice or recommendation inthis research is suitable for their particular circumstances and, if appropriate, seek professional advice, including tax advice. Exchange rate movements could have adverseeff ects on the value or price of, or income derived from, certain investments.

Bradesco Corretoras and its affiliates salespeople, traders and other professionals may provide oral or w rittenmarket commentary or trading strategies to their clients andtheir proprietary trading desks that reflect opinions that are contrary to the opinion expressed in this report. Such market commentary or trading strategies reflect thedifferenttime frames, assumptions, view s and analytical methods of the persons w ho prepared them, and Bradesco Corretora and its affiliates are under no obligation to ensure thatsuch market commentary or trading strategies are brought to the attention of any recipient of this report.

From time to time, Bradesco Corretora or its affiliates and officers, directors and employees, not including its analysts may, to the extent permitted by law , hold long or shortpositions, or otherwise be interested in transactions in ass ets directly or indirectly related to this report.

Non-US research analysts w ho have prepared this report are not registered or qualified as research analysts w ith FINRA but instead have satisfied the registration andqualification requirements or other research-related standards of a non-US jurisdiction.


12/12

Bradesco Corretora Research Team

Dalton Gardimam 55 112178 4275 da lton@bradescobb i.com.br Denis Blum 55 112178 4224 [email protected]

(Senior Eco nomist)

Tarik Migliorini 55 112178 4230 [email protected]

Carlos Firetti, CFA 55 112178 5363 car losf iret t [email protected] Luis Azevedo 55 112178 5321 [email protected]

Tales Freire 55 112178 4527 [email protected]

Banking and Insurance

Carlos Firetti, CFA 55 112178 5363 car losf iret t [email protected] Education

Bruno Chemmer, CFA 55 112178 4903 [email protected] Luis Azevedo 55 112178 5321 [email protected]

Rafael Frade, CFA 55 112178 4056 rafae lf@bradescobbi .com.b r Tales Freire 55 112178 4527 [email protected]

Financial Services

Rafael Frade , CFA 55 112178 4056 rafae lf@bradescobbi .com.b r

Gabriel Gusan, CFA 55 112178 5329 gabriel [email protected] Ricardo Boiati 55 112178 5326 [email protected]

Carlos Firetti, CFA 55 112178 5363 car losf iret t [email protected] Pedro Bueno 55 112178 4272 [email protected]

Healthcare

Rafael Frade , CFA 55 112178 4056 rafae lf@bradescobbi .com.b r

Raquel Erzinian 55 112178 5319 raquel@bradescobbi .com.b r Auro Rozenbaum 55 112178 5315 [email protected]

Marcos Dong 55 112178 5469 [email protected]

Bruno Arruda 55 112178 5310 [email protected]

Alan Glezer, CFA 55 112178 5466 [email protected] Fixed Income

Arthur Suelotto, CFA 55 112178 6104 arthur.suelot [email protected] Altair Pere ira 55 112178 4279 [email protected]

Caio Lombardi 55 112178 4225 [email protected]

Andr Sonnervig 55 112178 5318 [email protected]

Edigimar Maximiliano Jr. 55 112178 5327 maximi [email protected]

Luiz Peanha 55 112178 5324 pecanha@bradescobbi .com.b r

Andr Mazini 55 112178 5109 [email protected] Renata Cristovo 55 112178 4273 [email protected]

Leandro Fontanesi 55 112178 4274 [email protected]

Homebuilding

Luiz Mauricio Garcia 55 112178 4223 lmgarcia@bradescobbi .com.br Gabriel Lim a 55 112178 5313 [email protected]

Alain Nicolau 55 112178 5316 alain@bradescobb i.com.br Rodrigo Coelho 55 112178 5317 [email protected]

Sales - 55 11 3556 3001

Juvenal Neves juvenal@bradesco bbi.com.br Head of Trading

Tiago Valent [email protected] Orlando Cardoso orlandocardoso @bradescobbi.com.br

Gustavo Paiva [email protected]

Catherine Menezes [email protected]

Traders

Fernanda Weber Bratz [email protected] Cssio Garcia [email protected]

Lucila Sakakura [email protected] Fbio Brisola [email protected]

Gustavo Ize [email protected]

Ingrid Amorim [email protected]

Rogrio Queiroz [email protected] Julio Cesar Rossi [email protected]

Dauro Zaltman [email protected] Mauricio Sanchez [email protected]

Denise Chicuta [email protected] Peter Gil [email protected]

[email protected] Silene Zinhani [email protected]

Traders

Agnaldo Ishikava [email protected] Marcio Aguiar [email protected]

Douglas Vieira Corazza [email protected] Wilson Pereira [email protected]

Eduardo Tosin Bueno [email protected]

Joao Batista Tamassia Santos Junior joo [email protected]

Marcelo Matias Boneri [email protected]

Paulo Silva do Carmo [email protected]

Pedro Fonseca de Souza [email protected] Jos Lzaro Ferreira - Head [email protected]

Sandoval Marcos Iorio [email protected] [email protected]

Institutional Sales Team - USA, UK & HK

Marcelo Cabral [email protected] Luiz Fernando Silva [email protected]

Juan Briano jbriano@bradescosecurit ies.com Joo Paulo Loyola jployola@bradescos ecurities.com

Randall Smalley [email protected]

DeWayne Shaw [email protected]

Bradesco Securities UK, Ltd

Sales 44 207 382 0070

Shinichiro Fukui [email protected] Robert Hulme [email protected]

Brent Matson [email protected] Roland Campbell [email protected]

Robert Vespa [email protected] Sales - Fixed Income 44 207

Christopher Barresi [email protected] Guilherme Zraick [email protected]

Sean Harte [email protected] Fernanda Jordan [email protected]

Economics & Research Director

Bradesco Corretora CTVM S.A. | So Paulo

Transportation, Logistics, Malls and Comm ercial Properties

Bradesco Securities, Inc. | New York (FINRA/SIPC Member) Bradesco Securities Hong Kong Ltd.

Head of Equity Research

Sales Trading - 55 11 3556 3001

Steel, Mining, Pulp & Paper

(Chief Economist)

Consumer Goods and Retail

Telecom, Me dia and Technology

Electric Utilities, Water & Sewage

Food & Beverage

Each analyst whose name is in bold print is the principal analyst responsible for the content of reports on the respective sector, as well as fulfillment of

the pr ovisions of Art. 16 of CVM Ins truction 483/10.

Stock Loans Desk - 55 11 3556 3001

Sales Tr ading 01 212 888 9141

Sales - Fixed Income 01 212 888 9141

Oil & Gas, Petrochemicals and Sugar & Ethanol

Sales 01 212 888 9141

BM&F Trading Desk - 55 11 3556 3350

Lilian Osti - Commercial Manager

Sales - Local Fixed Income - 55 11 3556 3005

Patricia Cruz Bilezikjian, CFA

Sales (852)2251 8716 or (852) 2251 8718

Sales - Fixed Income - 55 11 2178 6959

Date post:	03-Jun-2018
Category:	Documents
Upload:	benjah2
View:	225 times
Download:	0 times

VALE - Focusing on Strong Operational Drivers as Uncertainty Fades_09Dez13_BBD

Documents