United States
Securities and Exchange Commission
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the
Securities Exchange Act of 1934
For the month of
October, 2017
Vale S.A.
Avenida das Américas, No. 700
22640-100 Rio de Janeiro, RJ, Brazil
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
(Check One) Form 20-F x Form 40-F o
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1)
(Check One) Yes o No x
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7)
(Check One) Yes o No x
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
(Check One) Yes o No x
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b). 82- .
Vale S.A. Interim Financial Statements
|
|
Page |
|
3 | |
|
5 | |
|
Consolidated and Parent Company Statement of Comprehensive Income |
7 |
|
8 | |
|
Consolidated and Parent Company Statement of Financial Position |
10 |
|
11 | |
|
12 | |
|
13 | |
|
13 | |
|
2. Basis for preparation of the interim financial statements |
13 |
|
14 | |
|
18 | |
|
20 | |
|
21 | |
|
21 | |
|
23 | |
|
23 | |
|
24 | |
|
24 | |
|
12. Non-current assets and liabilities held for sale and discontinued operations |
24 |
|
25 | |
|
26 | |
|
28 | |
|
28 | |
|
17. Loans, borrowings, cash and cash equivalents and financial investments |
29 |
|
32 | |
|
35 | |
|
36 | |
|
37 | |
|
41 | |
|
42 | |
|
43 | |
|
44 | |
|
45 | |
|
46 | |
|
28. Parent Company information (individual interim information) |
47 |
|
29. Additional information about derivatives financial instruments |
51 |
|
|
KPMG Auditores Independentes |
Central Tel |
55 (21) 2207-9400 |
|
Rua do Passeio, 38 Setor 2 17º andar |
Fax |
55 (21) 2207-9000 | |
|
20021-290 - Rio de Janeiro, RJ - Brasil |
Internet |
www.kpmg.com.br |
Report on the review of quarterly information - ITR
(A free translation of the original report in Portuguese, as filed with the Brazilian Securities and Exchange Commission (CVM), prepared in accordance with the accounting practices adopted in Brazil, rules of the CVM and of the International Financial Reporting Standards - IFRS)
To
The Board of Directors and Stockholders of
Vale S.A.
Rio de Janeiro - RJ
Introduction
1. We have reviewed the interim accounting information, individual and consolidated, of Vale S.A. (“the Company”), identified as Parent Company and Consolidated, respectively, included in the quarterly information form - ITR for the quarter ended September 30, 2017, which comprises the individual and consolidated balance sheet as of September 30, 2017 and the respective statements of income and comprehensive income for three and nine month periods ended on September 30, 2017, the individual and consolidated statements of changes in equity for the nine-month period and the individual statment of cash flows for the nine-month period and the consolidated statement of cash flows for the three and nine month periods then ended, including the explanatory notes.
2. The Company`s Management is responsible for the preparation of these interim accounting information in accordance with the CPC 21(R1) — Demonstração Intermediária and the IAS 34 - Interim Financial Reporting, issued by the International Accounting Standards Board — IASB, as well as the presentation of these information in accordance with the standards issued by the Brazilian Securities and Exchange Commission, applicable to the preparation of quarterly information - ITR. Our responsibility is to express our conclusion on this interim accounting information based on our review.
Scope of the review
3. We conducted our review in accordance with Brazilian and International Interim Information Review Standards (NBC TR 2410 - Revisão de Informações Intermediárias Executada pelo Auditor da Entidade and ISRE 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity, respectively). A review of interim information consists of making inquiries primarily of the management responsible for financial and accounting matters and applying analytical procedures and other review procedures. The scope of a review is significantly less than an audit conducted in accordance with auditing standards and, accordingly, it did not enable us to obtain assurance that we were aware of all the material matters that would have been identified in an audit. Therefore, we do not express an audit opinion.
|
|
KPMG Auditores Independentes, uma sociedade simples brasileira e firma-membro da rede KPMG de firmas-membro independentes e afiliadas à KPMG International Cooperative (“KPMG International”), uma entidade suíça. |
KPMG Auditores Independentes, a Brazilian entity and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. |
Conclusion on the interim accounting information
4. Based on our review, we are not aware of any fact that might lead us to believe that the individual and consolidated interim accounting information included in the aforementioned quarterly information was not prepared, in all material respects, in accordance with CPC 21(R1) and IAS 34, issued by the IASB, applicable to the preparation of the quarterly review - ITR, and presented in accordance with the standards issued by the Brazilian Securities and Exchange Commission.
Other matters
Statements of added value
5. The individual and consolidated statements of value added for the quarter ended September 30, 2017, prepared under the responsibility of the Company’s management, and presented as supplementary information for the purposes of IAS 34, were submitted to the same review procedures followed together with the review of the Company’s interim financial information. In order to form our conclusion, we evaluated whether these statements were reconciliated to the interim financial information and to the accounting records, as applicable, and whether their form and content are in accordance with the criteria set on Technical Pronouncement CPC 09 - Statement of Value Added. Based on our review, nothing has come to our attention that causes us to believe that the accompanying statements of value added were not prepared, in all material respects, in accordance with the individual and consolidated interim financial information taken as a whole.
Rio de Janeiro, October 25, 2017
KPMG Auditores Independentes
CRC SP-014428/O-6 F-RJ
(Original report in Portuguese signed by)
Manuel Fernandes Rodrigues de Sousa
Accountant CRC RJ-052428/O-2
In millions of Brazilian Reais, except earnings per share data
|
|
|
|
|
Consolidated |
| ||||||
|
|
|
|
|
Three-month period ended |
|
Nine-month period ended |
| ||||
|
|
|
Notes |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
|
|
|
|
|
|
|
(i) |
|
|
|
(i) |
|
|
Continuing operations |
|
|
|
|
|
|
|
|
|
|
|
|
Net operating revenue |
|
3(c) |
|
28,600 |
|
21,831 |
|
78,705 |
|
63,981 |
|
|
Cost of goods sold and services rendered |
|
5(a) |
|
(17,099 |
) |
(14,100 |
) |
(48,426 |
) |
(44,271 |
) |
|
Gross profit |
|
|
|
11,501 |
|
7,731 |
|
30,279 |
|
19,710 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Selling and administrative expenses |
|
5(b) |
|
(409 |
) |
(444 |
) |
(1,223 |
) |
(1,309 |
) |
|
Research and evaluation expenses |
|
|
|
(285 |
) |
(258 |
) |
(748 |
) |
(726 |
) |
|
Pre operating and operational stoppage |
|
|
|
(265 |
) |
(377 |
) |
(915 |
) |
(1,144 |
) |
|
Other operating revenues (expenses), net |
|
5(c) |
|
(484 |
) |
218 |
|
(1,002 |
) |
(426 |
) |
|
|
|
|
|
(1,443 |
) |
(861 |
) |
(3,888 |
) |
(3,605 |
) |
|
Impairment and other results on non-current assets |
|
13 and 16 |
|
(532 |
) |
(110 |
) |
345 |
|
(338 |
) |
|
Operating income |
|
|
|
9,526 |
|
6,760 |
|
26,736 |
|
15,767 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial income |
|
6 |
|
4,838 |
|
1,187 |
|
9,327 |
|
26,113 |
|
|
Financial expenses |
|
6 |
|
(4,084 |
) |
(4,578 |
) |
(14,808 |
) |
(17,763 |
) |
|
Equity results in associates and joint ventures |
|
14 |
|
367 |
|
144 |
|
509 |
|
1,386 |
|
|
Impairment and other results in associates and joint ventures |
|
18 |
|
(78 |
) |
(106 |
) |
(379 |
) |
(4,105 |
) |
|
Income before income taxes |
|
|
|
10,569 |
|
3,407 |
|
21,385 |
|
21,398 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes |
|
7 |
|
|
|
|
|
|
|
|
|
|
Current tax |
|
|
|
(1,654 |
) |
(203 |
) |
(3,461 |
) |
(2,895 |
) |
|
Deferred tax |
|
|
|
(1,407 |
) |
(1,211 |
) |
(1,660 |
) |
(6,516 |
) |
|
|
|
|
|
(3,061 |
) |
(1,414 |
) |
(5,121 |
) |
(9,411 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income from continuing operations |
|
|
|
7,508 |
|
1,993 |
|
16,264 |
|
11,987 |
|
|
Net income attributable to noncontrolling interests |
|
|
|
19 |
|
37 |
|
166 |
|
88 |
|
|
Net income from continuing operations attributable to Vale’s stockholders |
|
|
|
7,489 |
|
1,956 |
|
16,098 |
|
11,899 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations |
|
12 |
|
|
|
|
|
|
|
|
|
|
Loss from discontinued operations |
|
|
|
(338 |
) |
(127 |
) |
(983 |
) |
(154 |
) |
|
Net income attributable to noncontrolling interests |
|
|
|
8 |
|
(13 |
) |
21 |
|
7 |
|
|
Loss from discontinued operations attributable to Vale’s stockholders |
|
|
|
(346 |
) |
(114 |
) |
(1,004 |
) |
(161 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
|
7,170 |
|
1,866 |
|
15,281 |
|
11,833 |
|
|
Net income attributable to noncontrolling interests |
|
|
|
27 |
|
24 |
|
187 |
|
95 |
|
|
Net income attributable to Vale’s stockholders |
|
|
|
7,143 |
|
1,842 |
|
15,094 |
|
11,738 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share attributable to Vale’s stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted earnings per share (restated in note 4): |
|
8 |
|
|
|
|
|
|
|
|
|
|
Preferred share (R$) |
|
|
|
1.38 |
|
0.35 |
|
2.92 |
|
2.27 |
|
|
Common share (R$) |
|
|
|
1.38 |
|
0.35 |
|
2.92 |
|
2.27 |
|
(i) Period restated according to Note 12.
The accompanying notes are an integral part of these interim financial statements.
Income Statement
In millions of Brazilian Reais, except earnings per share data
|
|
|
Parent company |
| ||||||
|
|
|
Three-month period ended |
|
Nine-month period ended |
| ||||
|
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
|
Continuing operations |
|
|
|
|
|
|
|
|
|
|
Net operating revenue |
|
14,369 |
|
11,941 |
|
47,033 |
|
32,315 |
|
|
Cost of goods sold and services rendered |
|
(8,335 |
) |
(7,552 |
) |
(24,424 |
) |
(21,599 |
) |
|
Gross profit |
|
6,034 |
|
4,389 |
|
22,609 |
|
10,716 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
Selling and administrative expenses |
|
(229 |
) |
(265 |
) |
(690 |
) |
(754 |
) |
|
Research and evaluation expenses |
|
(171 |
) |
(162 |
) |
(444 |
) |
(417 |
) |
|
Pre operating and operational stoppage |
|
(256 |
) |
(167 |
) |
(660 |
) |
(506 |
) |
|
Equity results from subsidiaries |
|
3,224 |
|
1,288 |
|
4,840 |
|
4,745 |
|
|
Other operating expenses, net |
|
(438 |
) |
(312 |
) |
(523 |
) |
(830 |
) |
|
|
|
2,130 |
|
382 |
|
2,523 |
|
2,238 |
|
|
Impairment and other results on non-current assets |
|
(258 |
) |
— |
|
(326 |
) |
— |
|
|
Operating income |
|
7,906 |
|
4,771 |
|
24,806 |
|
12,954 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial income |
|
4,278 |
|
1,296 |
|
7,793 |
|
25,006 |
|
|
Financial expenses |
|
(3,169 |
) |
(4,464 |
) |
(12,848 |
) |
(17,122 |
) |
|
Equity results in associates and joint ventures |
|
367 |
|
144 |
|
509 |
|
1,386 |
|
|
Impairment and other results in associates and joint ventures |
|
(78 |
) |
(106 |
) |
(370 |
) |
(4,105 |
) |
|
Income before income taxes |
|
9,304 |
|
1,641 |
|
19,890 |
|
18,119 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes |
|
|
|
|
|
|
|
|
|
|
Current tax |
|
(1,278 |
) |
137 |
|
(2,344 |
) |
(2,161 |
) |
|
Deferred tax |
|
(537 |
) |
178 |
|
(1,448 |
) |
(4,059 |
) |
|
|
|
(1,815 |
) |
315 |
|
(3,792 |
) |
(6,220 |
) |
|
Net income from continuing operations |
|
7,489 |
|
1,956 |
|
16,098 |
|
11,899 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations |
|
|
|
|
|
|
|
|
|
|
Loss from discontinued operations |
|
(346 |
) |
(114 |
) |
(1,004 |
) |
(161 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
7,143 |
|
1,842 |
|
15,094 |
|
11,738 |
|
The accompanying notes are an integral part of these interim financial statements.
Statement of Comprehensive Income
In millions of Brazilian Reais
|
|
|
Consolidated |
| ||||||
|
|
|
Three-month period ended |
|
Nine-month period ended |
| ||||
|
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
|
Net income |
|
7,170 |
|
1,866 |
|
15,281 |
|
11,833 |
|
|
Other comprehensive income: |
|
|
|
|
|
|
|
|
|
|
Items that will not be reclassified subsequently to the income statement |
|
|
|
|
|
|
|
|
|
|
Retirement benefit obligations |
|
200 |
|
(128 |
) |
(826 |
) |
(1,100 |
) |
|
Tax recognized within other comprehensive income |
|
(58 |
) |
43 |
|
253 |
|
340 |
|
|
Total items that will not be reclassified subsequently to the income statement |
|
142 |
|
(85 |
) |
(573 |
) |
(760 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Items that may be reclassified subsequently to the income statement |
|
|
|
|
|
|
|
|
|
|
Cumulative translation adjustments |
|
(2,260 |
) |
787 |
|
96 |
|
(13,435 |
) |
|
Cash flow hedge |
|
— |
|
— |
|
— |
|
23 |
|
|
Net investments hedge |
|
935 |
|
— |
|
515 |
|
— |
|
|
Equity results in associates and joint ventures, net of taxes |
|
— |
|
— |
|
— |
|
16 |
|
|
Transfer of realized results to net income, net of taxes |
|
— |
|
— |
|
— |
|
(276 |
) |
|
Tax recognized within other comprehensive income |
|
(582 |
) |
55 |
|
(686 |
) |
(470 |
) |
|
Total of items that may be reclassified subsequently to the income statement |
|
(1,907 |
) |
842 |
|
(75 |
) |
(14,142 |
) |
|
Total comprehensive income (loss) |
|
5,405 |
|
2,623 |
|
14,633 |
|
(3,069 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income (loss) attributable to noncontrolling interests |
|
(118 |
) |
66 |
|
74 |
|
(835 |
) |
|
Comprehensive income (loss) attributable to Vale’s stockholders |
|
5,523 |
|
2,557 |
|
14,559 |
|
(2,234 |
) |
|
|
|
Parent company |
| ||||||
|
|
|
Three-month period ended |
|
Nine-month period ended |
| ||||
|
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
|
Net income |
|
7,143 |
|
1,842 |
|
15,094 |
|
11,738 |
|
|
Other comprehensive income: |
|
|
|
|
|
|
|
|
|
|
Items that will not be reclassified subsequently to the income statement |
|
|
|
|
|
|
|
|
|
|
Retirement benefit obligations |
|
(40 |
) |
(26 |
) |
(80 |
) |
(66 |
) |
|
Tax recognized within other comprehensive income |
|
14 |
|
10 |
|
27 |
|
23 |
|
|
Equity results in subsidiaries, associates and joint ventures, net of taxes |
|
168 |
|
(69 |
) |
(520 |
) |
(717 |
) |
|
Total items that will not be reclassified subsequently to the income statement |
|
142 |
|
(85 |
) |
(573 |
) |
(760 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Items that may be reclassified subsequently to the income statement |
|
|
|
|
|
|
|
|
|
|
Cumulative translation adjustments |
|
(2,378 |
) |
800 |
|
(301 |
) |
(12,972 |
) |
|
Net investments hedge |
|
935 |
|
— |
|
515 |
|
— |
|
|
Equity results in associates and joint ventures, net of taxes |
|
— |
|
— |
|
— |
|
26 |
|
|
Transfer of realized results to net income, net of taxes |
|
— |
|
— |
|
— |
|
(266 |
) |
|
Tax recognized within other comprehensive income |
|
(319 |
) |
— |
|
(176 |
) |
— |
|
|
Total of items that may be reclassified subsequently to the income statement |
|
(1,762 |
) |
800 |
|
38 |
|
(13,212 |
) |
|
Total comprehensive income (loss) |
|
5,523 |
|
2,557 |
|
14,559 |
|
(2,234 |
) |
The accompanying notes are an integral part of these interim financial statements.
In millions of Brazilian Reais
|
|
|
Consolidated |
| ||||||
|
|
|
Three-month period ended |
|
Nine-month period ended |
| ||||
|
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
|
|
|
|
|
(i) |
|
|
|
(i) |
|
|
Cash flow from operating activities: |
|
|
|
|
|
|
|
|
|
|
Income before income taxes from continuing operations |
|
10,569 |
|
3,407 |
|
21,385 |
|
21,398 |
|
|
Continuing operations adjustments for: |
|
|
|
|
|
|
|
|
|
|
Equity results in associates and joint ventures |
|
(367 |
) |
(144 |
) |
(509 |
) |
(1,386 |
) |
|
Impairment and other results on non-current assets |
|
532 |
|
110 |
|
(345 |
) |
338 |
|
|
Impairment and other results in associates and joint ventures |
|
78 |
|
— |
|
379 |
|
3,999 |
|
|
Depreciation, amortization and depletion |
|
2,916 |
|
2,766 |
|
8,674 |
|
8,764 |
|
|
Financial results, net |
|
(754 |
) |
3,391 |
|
5,481 |
|
(8,350 |
) |
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
(3,075 |
) |
405 |
|
3,420 |
|
(2,854 |
) |
|
Inventories |
|
(173 |
) |
(249 |
) |
(1,488 |
) |
(308 |
) |
|
Suppliers and contractors |
|
113 |
|
1,425 |
|
1,162 |
|
1,464 |
|
|
Provision - Payroll, related charges and others remunerations |
|
632 |
|
(51 |
) |
539 |
|
85 |
|
|
Deferred revenue - Gold stream |
|
— |
|
1,683 |
|
— |
|
1,683 |
|
|
Other assets and liabilities, net |
|
(855 |
) |
(2,342 |
) |
(2,824 |
) |
(1,222 |
) |
|
|
|
9,616 |
|
10,401 |
|
35,874 |
|
23,611 |
|
|
Interest on loans and borrowings paid |
|
(1,289 |
) |
(1,377 |
) |
(4,235 |
) |
(4,511 |
) |
|
Derivatives paid, net |
|
(361 |
) |
(619 |
) |
(714 |
) |
(3,831 |
) |
|
Interest on participative stockholders’ debentures paid |
|
— |
|
— |
|
(221 |
) |
(117 |
) |
|
Income taxes |
|
(282 |
) |
(384 |
) |
(1,539 |
) |
(1,242 |
) |
|
Income taxes - Settlement program |
|
(393 |
) |
(362 |
) |
(1,159 |
) |
(1,056 |
) |
|
Net cash provided by operating activities from continuing operations |
|
7,291 |
|
7,659 |
|
28,006 |
|
12,854 |
|
|
Net cash provided by operating activities from discontinued operations |
|
275 |
|
150 |
|
238 |
|
282 |
|
|
Net cash provided by operating activities |
|
7,566 |
|
7,809 |
|
28,244 |
|
13,136 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from investing activities: |
|
|
|
|
|
|
|
|
|
|
Financial investments redeemed (invested) |
|
(124 |
) |
227 |
|
(176 |
) |
181 |
|
|
Loans and advances - Net receipts (payments) (note 18) |
|
(324 |
) |
(396 |
) |
(1,059 |
) |
(401 |
) |
|
Additions to investments |
|
(217 |
) |
(14 |
) |
(223 |
) |
(837 |
) |
|
Additions to property, plant and equipment and intangible |
|
(2,713 |
) |
(3,719 |
) |
(9,052 |
) |
(12,998 |
) |
|
Proceeds from disposal of assets and investments (note 13) |
|
624 |
|
1,053 |
|
2,266 |
|
1,140 |
|
|
Dividends received from associates and joint ventures |
|
64 |
|
1 |
|
330 |
|
406 |
|
|
Others investments activities |
|
7 |
|
160 |
|
(95 |
) |
12 |
|
|
Proceeds from gold stream transaction |
|
— |
|
885 |
|
— |
|
885 |
|
|
Net cash used in investing activities from continuing operations |
|
(2,683 |
) |
(1,803 |
) |
(8,009 |
) |
(11,612 |
) |
|
Net cash used in investing activities from discontinued operations |
|
(224 |
) |
(348 |
) |
(684 |
) |
(741 |
) |
|
Net cash used in investing activities |
|
(2,907 |
) |
(2,151 |
) |
(8,693 |
) |
(12,353 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from financing activities: |
|
|
|
|
|
|
|
|
|
|
Loans and borrowings |
|
|
|
|
|
|
|
|
|
|
Additions |
|
1,115 |
|
5,092 |
|
5,654 |
|
23,046 |
|
|
Repayments |
|
(8,895 |
) |
(6,430 |
) |
(18,327 |
) |
(17,364 |
) |
|
Transactions with stockholders: |
|
|
|
|
|
|
|
|
|
|
Dividends and interest on capital attributed to stockholders |
|
— |
|
— |
|
(4,660 |
) |
— |
|
|
Dividends and interest on capital paid to noncontrolling interest |
|
(372 |
) |
(433 |
) |
(395 |
) |
(702 |
) |
|
Transactions with noncontrolling stockholders (note 13) |
|
— |
|
— |
|
(305 |
) |
(69 |
) |
|
Net cash provided by (used in) financing activities from continuing operations |
|
(8,152 |
) |
(1,771 |
) |
(18,033 |
) |
4,911 |
|
|
Net cash used in financing activities from discontinued operations |
|
(107 |
) |
(29 |
) |
(108 |
) |
(45 |
) |
|
Net cash provided by (used in) financing activities |
|
(8,259 |
) |
(1,800 |
) |
(18,141 |
) |
4,866 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (decrease) in cash and cash equivalents |
|
(3,600 |
) |
3,858 |
|
1,410 |
|
5,649 |
|
|
Cash and cash equivalents in the beginning of the period |
|
18,922 |
|
13,377 |
|
13,891 |
|
14,022 |
|
|
Effect of exchange rate changes on cash and cash equivalents |
|
(380 |
) |
193 |
|
(315 |
) |
(2,243 |
) |
|
Effects of disposals of subsidiaries and merger, net on cash and cash equivalents |
|
7 |
|
— |
|
(37 |
) |
— |
|
|
Cash and cash equivalents at end of the period |
|
14,949 |
|
17,428 |
|
14,949 |
|
17,428 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash transactions: |
|
|
|
|
|
|
|
|
|
|
Additions to property, plant and equipment - capitalized loans and borrowing costs |
|
351 |
|
556 |
|
938 |
|
1,995 |
|
(i) Period restated according to Note 12.
The accompanying notes are an integral part of these interim financial statements.
Statement of Cash Flows
In millions of Brazilian Reais
|
|
|
Parent company |
| ||
|
|
|
Nine-month period ended |
| ||
|
|
|
2017 |
|
2016 |
|
|
Cash flow from operating activities: |
|
|
|
|
|
|
Income before income taxes from continuing operations |
|
19,890 |
|
18,119 |
|
|
Equity results in associates, subsidiaries and joint ventures |
|
(5,349 |
) |
(6,131 |
) |
|
Results on measurement or sale of non-current assets |
|
326 |
|
— |
|
|
Impairment and other results in associates and joint ventures |
|
370 |
|
4,105 |
|
|
Depreciation, amortization and depletion |
|
4,124 |
|
3,717 |
|
|
Financial results, net |
|
5,055 |
|
(7,884 |
) |
|
Changes in assets and liabilities: |
|
|
|
|
|
|
Accounts receivable |
|
13,517 |
|
4,634 |
|
|
Inventories |
|
(346 |
) |
87 |
|
|
Suppliers and contractors |
|
81 |
|
333 |
|
|
Provision - Payroll, related charges and others remunerations |
|
483 |
|
153 |
|
|
Other assets and liabilities, net |
|
80 |
|
320 |
|
|
|
|
38,231 |
|
17,453 |
|
|
Interest on loans and borrowings paid |
|
(4,311 |
) |
(4,185 |
) |
|
Derivatives paid, net |
|
(439 |
) |
(790 |
) |
|
Interest on participative stockholders’ debentures paid |
|
(221 |
) |
(117 |
) |
|
Dividends received from interest on capital and associates |
|
1,602 |
|
186 |
|
|
Income taxes |
|
(735 |
) |
(60 |
) |
|
Income taxes - Settlement program |
|
(1,136 |
) |
(1,035 |
) |
|
Net cash provided by operating activities |
|
32,991 |
|
11,452 |
|
|
|
|
|
|
|
|
|
Cash flow from investing activities: |
|
|
|
|
|
|
Financial investments redeemed (invested) |
|
(195 |
) |
(34 |
) |
|
Loans and advances - Net receipts (payments) |
|
(482 |
) |
(341 |
) |
|
Additions to investments |
|
(1,205 |
) |
(1,334 |
) |
|
Additions to property, plant and equipment and intangible |
|
(6,306 |
) |
(9,070 |
) |
|
Proceeds from disposal of assets and investments |
|
21 |
|
115 |
|
|
Dividends and interest on capital received from associates and joint ventures |
|
300 |
|
403 |
|
|
Others investments activities |
|
(87 |
) |
— |
|
|
Net cash used in investing activities |
|
(7,954 |
) |
(10,261 |
) |
|
|
|
|
|
|
|
|
Cash flow from financing activities: |
|
|
|
|
|
|
Loans and borrowings |
|
|
|
|
|
|
Additions |
|
7,875 |
|
11,590 |
|
|
Repayments |
|
(26,114 |
) |
(12,803 |
) |
|
Transactions with stockholders: |
|
|
|
|
|
|
Dividends attributed to stockholders |
|
(4,660 |
) |
— |
|
|
Net cash used in financing activities |
|
(22,899 |
) |
(1,213 |
) |
|
|
|
|
|
|
|
|
Increase (decrease) in cash and cash equivalents |
|
2,138 |
|
(22 |
) |
|
Cash and cash equivalents in the beginning of the period |
|
1,203 |
|
518 |
|
|
Effects of disposals of subsidiaries and merger, net on cash and cash equivalents |
|
7 |
|
— |
|
|
Cash and cash equivalents at end of the period |
|
3,348 |
|
496 |
|
|
|
|
|
|
|
|
|
Non-cash transactions: |
|
|
|
|
|
|
Additions to property, plant and equipment - capitalized loans and borrowing costs |
|
938 |
|
827 |
|
The accompanying notes are an integral part of these interim financial statements.
Statement of Financial Position
In millions of Brazilian Reais
|
|
|
|
|
Consolidated |
|
Parent company |
| ||||
|
|
|
Notes |
|
September 30, |
|
December 31, |
|
September 30, |
|
December 31, |
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
17 |
|
14,949 |
|
13,891 |
|
3,348 |
|
1,203 |
|
|
Accounts receivable |
|
9 |
|
8,592 |
|
11,937 |
|
12,156 |
|
26,223 |
|
|
Other financial assets |
|
11 |
|
7,144 |
|
1,184 |
|
906 |
|
1,231 |
|
|
Inventories |
|
10 |
|
12,934 |
|
10,913 |
|
4,429 |
|
3,982 |
|
|
Prepaid income taxes |
|
|
|
1,054 |
|
518 |
|
894 |
|
312 |
|
|
Recoverable taxes |
|
|
|
3,564 |
|
5,296 |
|
2,068 |
|
3,962 |
|
|
Others |
|
|
|
1,068 |
|
1,814 |
|
393 |
|
406 |
|
|
|
|
|
|
49,305 |
|
45,553 |
|
24,194 |
|
37,319 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current assets held for sale |
|
12 |
|
13,700 |
|
27,994 |
|
8,406 |
|
8,936 |
|
|
|
|
|
|
63,005 |
|
73,547 |
|
32,600 |
|
46,255 |
|
|
Non-current assets |
|
|
|
|
|
|
|
|
|
|
|
|
Judicial deposits |
|
23(c) |
|
6,352 |
|
3,135 |
|
5,933 |
|
2,681 |
|
|
Other financial assets |
|
11 |
|
10,333 |
|
2,046 |
|
1,873 |
|
2,178 |
|
|
Prepaid income taxes |
|
|
|
1,707 |
|
1,718 |
|
— |
|
— |
|
|
Recoverable taxes |
|
|
|
2,062 |
|
2,368 |
|
1,933 |
|
2,223 |
|
|
Deferred income taxes |
|
7(a) |
|
21,069 |
|
23,931 |
|
13,703 |
|
15,299 |
|
|
Others |
|
|
|
980 |
|
894 |
|
698 |
|
618 |
|
|
|
|
|
|
42,503 |
|
34,092 |
|
24,140 |
|
22,999 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments |
|
14 |
|
12,214 |
|
12,046 |
|
114,435 |
|
107,539 |
|
|
Intangibles |
|
15 |
|
27,405 |
|
22,395 |
|
13,109 |
|
11,314 |
|
|
Property, plant and equipment |
|
16 |
|
178,296 |
|
180,616 |
|
102,253 |
|
102,056 |
|
|
|
|
|
|
260,418 |
|
249,149 |
|
253,937 |
|
243,908 |
|
|
Total assets |
|
|
|
323,423 |
|
322,696 |
|
286,537 |
|
290,163 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
Suppliers and contractors |
|
|
|
12,712 |
|
11,830 |
|
7,431 |
|
7,116 |
|
|
Loans and borrowings |
|
17 |
|
5,824 |
|
5,410 |
|
4,533 |
|
4,171 |
|
|
Other financial liabilities |
|
11 |
|
2,008 |
|
3,539 |
|
5,045 |
|
10,845 |
|
|
Taxes payable |
|
7(c) |
|
2,312 |
|
2,144 |
|
1,935 |
|
1,883 |
|
|
Provision for income taxes |
|
|
|
979 |
|
556 |
|
— |
|
— |
|
|
Liabilities related to associates and joint ventures |
|
18 |
|
954 |
|
951 |
|
954 |
|
951 |
|
|
Provisions |
|
22 |
|
3,793 |
|
3,103 |
|
2,200 |
|
1,792 |
|
|
Dividends and interest on capital |
|
|
|
— |
|
2,602 |
|
— |
|
2,602 |
|
|
Others |
|
|
|
1,782 |
|
2,921 |
|
1,751 |
|
353 |
|
|
|
|
|
|
30,364 |
|
33,056 |
|
23,849 |
|
29,713 |
|
|
Liabilities associated with non-current assets held for sale |
|
12 |
|
3,590 |
|
3,554 |
|
— |
|
— |
|
|
|
|
|
|
33,954 |
|
36,610 |
|
23,849 |
|
29,713 |
|
|
Non-current liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
Loans and borrowings |
|
17 |
|
75,878 |
|
90,154 |
|
35,661 |
|
47,877 |
|
|
Other financial liabilities |
|
11 |
|
9,385 |
|
6,932 |
|
56,607 |
|
59,681 |
|
|
Taxes payable |
|
7(c) |
|
16,374 |
|
16,170 |
|
16,046 |
|
15,838 |
|
|
Deferred income taxes |
|
7(a) |
|
5,081 |
|
5,540 |
|
— |
|
— |
|
|
Provisions |
|
22 |
|
21,783 |
|
18,730 |
|
6,626 |
|
4,396 |
|
|
Liabilities related to associates and joint ventures |
|
18 |
|
2,296 |
|
2,560 |
|
2,296 |
|
2,560 |
|
|
Deferred revenue - Gold stream |
|
|
|
6,090 |
|
6,811 |
|
— |
|
— |
|
|
Others |
|
|
|
5,351 |
|
5,487 |
|
2,892 |
|
2,857 |
|
|
|
|
|
|
142,238 |
|
152,384 |
|
120,128 |
|
133,209 |
|
|
Total liabilities |
|
|
|
176,192 |
|
188,994 |
|
143,977 |
|
162,922 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity |
|
25 |
|
|
|
|
|
|
|
|
|
|
Equity attributable to Vale’s stockholders |
|
|
|
142,560 |
|
127,241 |
|
142,560 |
|
127,241 |
|
|
Equity attributable to noncontrolling interests |
|
|
|
4,671 |
|
6,461 |
|
— |
|
— |
|
|
Total stockholders’ equity |
|
|
|
147,231 |
|
133,702 |
|
142,560 |
|
127,241 |
|
|
Total liabilities and stockholders’ equity |
|
|
|
323,423 |
|
322,696 |
|
286,537 |
|
290,163 |
|
The accompanying notes are an integral part of these interim financial statements.
Statement of Changes in Equity
In millions of Brazilian Reais
|
|
|
Share |
|
Results on |
|
Capital reserves |
|
Results from |
|
Profit |
|
Treasury |
|
Unrealized |
|
Cumulative |
|
Retained |
|
Equity |
|
Equity |
|
Total |
|
|
Balance at December 31, 2016 |
|
77,300 |
|
50 |
|
— |
|
(1,870 |
) |
13,698 |
|
(2,746 |
) |
(3,739 |
) |
44,548 |
|
— |
|
127,241 |
|
6,461 |
|
133,702 |
|
|
Net income |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
15,094 |
|
15,094 |
|
187 |
|
15,281 |
|
|
Other comprehensive income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retirement benefit obligations |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(573 |
) |
— |
|
— |
|
(573 |
) |
— |
|
(573 |
) |
|
Net investments hedge (note 17 (vi)) |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
339 |
|
— |
|
339 |
|
— |
|
339 |
|
|
Translation adjustments |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
72 |
|
(373 |
) |
— |
|
(301 |
) |
(113 |
) |
(414 |
) |
|
Transactions with stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends and interest on capital of Vale’s stockholders |
|
— |
|
— |
|
— |
|
— |
|
(2,064 |
) |
— |
|
— |
|
— |
|
— |
|
(2,064 |
) |
— |
|
(2,064 |
) |
|
Dividends of noncontrolling interest |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(341 |
) |
(341 |
) |
|
Acquisitions and disposal of noncontrolling interest (note 13) |
|
— |
|
— |
|
— |
|
(868 |
) |
— |
|
— |
|
— |
|
— |
|
— |
|
(868 |
) |
(1,629 |
) |
(2,497 |
) |
|
Capitalization of noncontrolling interest advances |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
106 |
|
106 |
|
|
Merger of Valepar - Note 4 |
|
— |
|
— |
|
3,692 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
3,692 |
|
— |
|
3,692 |
|
|
Balance at September 30, 2017 |
|
77,300 |
|
50 |
|
3,692 |
|
(2,738 |
) |
11,634 |
|
(2,746 |
) |
(4,240 |
) |
44,514 |
|
15,094 |
|
142,560 |
|
4,671 |
|
147,231 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share |
|
Results on |
|
Capital reserves |
|
Results from |
|
Profit |
|
Treasury |
|
Unrealized |
|
Cumulative |
|
Retained |
|
Equity |
|
Equity |
|
Total |
|
|
Balance at December 31, 2015 |
|
77,300 |
|
50 |
|
— |
|
(1,881 |
) |
3,846 |
|
(2,746 |
) |
(3,873 |
) |
58,464 |
|
— |
|
131,160 |
|
8,259 |
|
139,419 |
|
|
Net income |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
11,738 |
|
11,738 |
|
95 |
|
11,833 |
|
|
Other comprehensive income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retirement benefit obligations |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(760 |
) |
— |
|
— |
|
(760 |
) |
— |
|
(760 |
) |
|
Cash flow hedge |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
26 |
|
— |
|
— |
|
26 |
|
— |
|
26 |
|
|
Translation adjustments |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
420 |
|
(13,658 |
) |
— |
|
(13,238 |
) |
(930 |
) |
(14,168 |
) |
|
Transactions with stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends of noncontrolling interest |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(645 |
) |
(645 |
) |
|
Acquisitions and disposal of noncontrolling interest (note 13) |
|
— |
|
— |
|
— |
|
8 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
8 |
|
(1 |
) |
7 |
|
|
Capitalization of noncontrolling interest advances |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
78 |
|
78 |
|
|
Balance at September 30, 2016 |
|
77,300 |
|
50 |
|
— |
|
(1,873 |
) |
3,846 |
|
(2,746 |
) |
(4,187 |
) |
44,806 |
|
11,738 |
|
128,934 |
|
6,856 |
|
135,790 |
|
The accompanying notes are an integral part of these interim financial statements.
In millions of Brazilian Reais
|
|
|
Consolidated |
|
Parent company |
| ||||
|
|
|
Nine-month period ended September 30, |
| ||||||
|
Generation of value added from continuing operations |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
|
|
|
|
|
(i) |
|
|
|
|
|
|
Gross revenue |
|
|
|
|
|
|
|
|
|
|
Revenue from products and services |
|
79,771 |
|
64,911 |
|
47,793 |
|
32,841 |
|
|
Results on measurement or sale of non-current assets |
|
345 |
|
(604 |
) |
(326 |
) |
(266 |
) |
|
Revenue from the construction of own assets |
|
4,657 |
|
10,107 |
|
4,165 |
|
7,921 |
|
|
Allowance for doubtful accounts |
|
(19 |
) |
(9 |
) |
6 |
|
(2 |
) |
|
Other revenues |
|
396 |
|
1,237 |
|
313 |
|
315 |
|
|
Less: |
|
|
|
|
|
|
|
|
|
|
Acquisition of products |
|
(1,483 |
) |
(1,264 |
) |
(516 |
) |
(572 |
) |
|
Material, service and maintenance |
|
(19,353 |
) |
(22,380 |
) |
(12,183 |
) |
(14,576 |
) |
|
Oil and gas |
|
(3,015 |
) |
(3,140 |
) |
(2,074 |
) |
(2,029 |
) |
|
Energy |
|
(2,226 |
) |
(1,733 |
) |
(1,057 |
) |
(757 |
) |
|
Freight |
|
(7,374 |
) |
(6,052 |
) |
(81 |
) |
(49 |
) |
|
Impairment of non-current assets and other results |
|
(379 |
) |
(3,839 |
) |
(370 |
) |
(3,839 |
) |
|
Impairment of discontinued operations |
|
— |
|
— |
|
(1,004 |
) |
(161 |
) |
|
Other costs and expenses |
|
(4,582 |
) |
(4,828 |
) |
(763 |
) |
(1,315 |
) |
|
Gross value added |
|
46,738 |
|
32,406 |
|
33,903 |
|
17,511 |
|
|
Depreciation, amortization and depletion |
|
(8,674 |
) |
(8,764 |
) |
(4,124 |
) |
(3,717 |
) |
|
Net value added |
|
38,064 |
|
23,642 |
|
29,779 |
|
13,794 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Received from third parties: |
|
|
|
|
|
|
|
|
|
|
Equity results from entities |
|
509 |
|
1,386 |
|
4,345 |
|
5,970 |
|
|
Equity results from discontinued operations |
|
— |
|
— |
|
1,004 |
|
161 |
|
|
Financial income |
|
1,054 |
|
432 |
|
302 |
|
241 |
|
|
Monetary and exchange variation of assets |
|
(276 |
) |
(6,526 |
) |
(404 |
) |
(6,461 |
) |
|
Total value added from continuing operations to be distributed |
|
39,351 |
|
18,934 |
|
35,026 |
|
13,705 |
|
|
Value added from discontinued operations to be distributed |
|
482 |
|
1,985 |
|
— |
|
— |
|
|
Total value added to be distributed |
|
39,833 |
|
20,919 |
|
35,026 |
|
13,705 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Personnel |
|
5,502 |
|
5,481 |
|
2,648 |
|
2,141 |
|
|
Taxes and contributions |
|
5,559 |
|
4,883 |
|
5,390 |
|
4,911 |
|
|
Current income tax |
|
3,461 |
|||||||