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
July 2018
Vale S.A.
Avenida das Américas, No. 700 – Bloco 8, Sala 218
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
KPMG Auditores Independentes
Rua do Passeio, 38 - Setor 2 - 17º andar - Centro
20021-290 - Rio de Janeiro/RJ - Brasil
Caixa Postal 2888 - CEP 20001-970 - Rio de Janeiro/RJ - Brasil
Telefone +55 (21) 2207-9400, Fax +55 (21) 2207-9000
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 financial 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 June 30, 2018, which comprises the individual and consolidated statement of financial position as of June 30, 2018 and the respective statements of income and comprehensive income for the three and six months periods ended on June 30, 2018, the statements of changes in equity for the six-month period then ended and of the individual statement of cash flows for the six-month period and the consolidated statements of cash flows for the three and six months periods then ended, including the explanatory notes.
2. The Company`s Management is responsible for the preparation of these interim financial 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 financial information based on our review.
|
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. |
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.
Conclusion on the interim financial 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 financial 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 interim financial information related to the statement of value added for the six-month period ended June 30, 2018, prepared under the responsibility of the Company’s management, and presented as supplementary information for the purposes of IAS 34, was 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 this statement was 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 statement of value added was not prepared, in all material respects, in accordance with the individual and consolidated interim financial information taken as a whole.
Rio de Janeiro, July 25, 2018
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 |
|
Six-month period ended |
| ||||
|
|
|
Notes |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
Continuing operations |
|
|
|
|
|
|
|
|
|
|
|
|
Net operating revenue |
|
3(c) |
|
31,234 |
|
23,363 |
|
59,166 |
|
50,105 |
|
|
Cost of goods sold and services rendered |
|
5(a) |
|
(19,463 |
) |
(16,462 |
) |
(36,433 |
) |
(31,327 |
) |
|
Gross profit |
|
|
|
11,771 |
|
6,901 |
|
22,733 |
|
18,778 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Selling and administrative expenses |
|
5(b) |
|
(440 |
) |
(426 |
) |
(842 |
) |
(814 |
) |
|
Research and evaluation expenses |
|
|
|
(330 |
) |
(257 |
) |
(553 |
) |
(463 |
) |
|
Pre operating and operational stoppage |
|
|
|
(242 |
) |
(286 |
) |
(495 |
) |
(650 |
) |
|
Other operating expenses, net |
|
5(c) |
|
(392 |
) |
(271 |
) |
(798 |
) |
(518 |
) |
|
|
|
|
|
(1,404 |
) |
(1,240 |
) |
(2,688 |
) |
(2,445 |
) |
|
Impairment and other results on non-current assets |
|
4 |
|
10 |
|
(726 |
) |
(42 |
) |
877 |
|
|
Operating income |
|
|
|
10,377 |
|
4,935 |
|
20,003 |
|
17,210 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial income |
|
6 |
|
608 |
|
600 |
|
1,367 |
|
1,803 |
|
|
Financial expenses |
|
6 |
|
(4,153 |
) |
(2,835 |
) |
(6,355 |
) |
(6,444 |
) |
|
Other financial items |
|
6 |
|
(7,385 |
) |
(2,106 |
) |
(8,013 |
) |
(1,594 |
) |
|
Equity results in associates and joint ventures |
|
13 |
|
177 |
|
(83 |
) |
450 |
|
142 |
|
|
Impairment and other results in associates and joint ventures |
|
17 |
|
(1,547 |
) |
(110 |
) |
(1,591 |
) |
(301 |
) |
|
Income (loss) before income taxes |
|
|
|
(1,923 |
) |
401 |
|
5,861 |
|
10,816 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes |
|
7 |
|
|
|
|
|
|
|
|
|
|
Current tax |
|
|
|
(460 |
) |
(222 |
) |
(755 |
) |
(1,807 |
) |
|
Deferred tax |
|
|
|
2,753 |
|
378 |
|
709 |
|
(253 |
) |
|
|
|
|
|
2,293 |
|
156 |
|
(46 |
) |
(2,060 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income from continuing operations |
|
|
|
370 |
|
557 |
|
5,815 |
|
8,756 |
|
|
Net income attributable to noncontrolling interests |
|
|
|
25 |
|
99 |
|
87 |
|
147 |
|
|
Net income from continuing operations attributable to Vale’s stockholders |
|
|
|
345 |
|
458 |
|
5,728 |
|
8,609 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations |
|
12 |
|
|
|
|
|
|
|
|
|
|
Loss from discontinued operations |
|
|
|
(39 |
) |
(388 |
) |
(310 |
) |
(645 |
) |
|
Net income attributable to noncontrolling interests |
|
|
|
— |
|
10 |
|
— |
|
13 |
|
|
Loss from discontinued operations attributable to Vale’s stockholders |
|
|
|
(39 |
) |
(398 |
) |
(310 |
) |
(658 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
|
331 |
|
169 |
|
5,505 |
|
8,111 |
|
|
Net income attributable to noncontrolling interests |
|
|
|
25 |
|
109 |
|
87 |
|
160 |
|
|
Net income attributable to Vale’s stockholders |
|
|
|
306 |
|
60 |
|
5,418 |
|
7,951 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share attributable to Vale’s stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted earnings per share (restated): |
|
8 |
|
|
|
|
|
|
|
|
|
|
Common share (R$) |
|
|
|
0.06 |
|
0.01 |
|
1.04 |
|
1.54 |
|
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 |
|
Six-month period ended |
| ||||
|
|
|
Notes |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
Continuing operations |
|
|
|
|
|
|
|
|
|
|
|
|
Net operating revenue |
|
3(c) |
|
18,427 |
|
15,502 |
|
34,132 |
|
32,664 |
|
|
Cost of goods sold and services rendered |
|
5(a) |
|
(9,605 |
) |
(8,338 |
) |
(17,981 |
) |
(16,089 |
) |
|
Gross profit |
|
|
|
8,822 |
|
7,164 |
|
16,151 |
|
16,575 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating (expenses) income |
|
|
|
|
|
|
|
|
|
|
|
|
Selling and administrative expenses |
|
5(b) |
|
(226 |
) |
(235 |
) |
(452 |
) |
(461 |
) |
|
Research and evaluation expenses |
|
|
|
(192 |
) |
(152 |
) |
(339 |
) |
(273 |
) |
|
Pre operating and operational stoppage |
|
|
|
(182 |
) |
(212 |
) |
(383 |
) |
(404 |
) |
|
Equity results from subsidiaries |
|
|
|
1,346 |
|
(1,449 |
) |
3,573 |
|
1,616 |
|
|
Other operating expenses, net |
|
5(c) |
|
(287 |
) |
(257 |
) |
(550 |
) |
(85 |
) |
|
|
|
|
|
459 |
|
(2,305 |
) |
1,849 |
|
393 |
|
|
Impairment and other results on non-current assets |
|
4 |
|
(144 |
) |
(27 |
) |
(224 |
) |
(68 |
) |
|
Operating income |
|
|
|
9,137 |
|
4,832 |
|
17,776 |
|
16,900 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial income |
|
6 |
|
122 |
|
252 |
|
441 |
|
1,097 |
|
|
Financial expenses |
|
6 |
|
(3,872 |
) |
(2,563 |
) |
(5,796 |
) |
(5,844 |
) |
|
Other financial items |
|
6 |
|
(7,162 |
) |
(1,945 |
) |
(7,722 |
) |
(1,417 |
) |
|
Equity results in associates and joint ventures |
|
13 |
|
177 |
|
(83 |
) |
450 |
|
142 |
|
|
Impairment and other results in associates and joint ventures |
|
17 |
|
(1,547 |
) |
(101 |
) |
(1,591 |
) |
(292 |
) |
|
Income (loss) before income taxes |
|
|
|
(3,145 |
) |
392 |
|
3,558 |
|
10,586 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes |
|
7 |
|
|
|
|
|
|
|
|
|
|
Current tax |
|
|
|
1 |
|
166 |
|
— |
|
(1,066 |
) |
|
Deferred tax |
|
|
|
3,489 |
|
(100 |
) |
2,170 |
|
(911 |
) |
|
|
|
|
|
3,490 |
|
66 |
|
2,170 |
|
(1,977 |
) |
|
Net income from continuing operations |
|
|
|
345 |
|
458 |
|
5,728 |
|
8,609 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations |
|
12 |
|
|
|
|
|
|
|
|
|
|
Loss from discontinued operations |
|
|
|
(39 |
) |
(398 |
) |
(310 |
) |
(658 |
) |
|
Net income |
|
|
|
306 |
|
60 |
|
5,418 |
|
7,951 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share attributable to Vale’s stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted earnings per share (restated): |
|
|
|
|
|
|
|
|
|
|
|
|
Common share (R$) |
|
|
|
0.06 |
|
0.01 |
|
1.04 |
|
1.54 |
|
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 |
|
Six-month period ended |
| ||||
|
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
Net income |
|
331 |
|
169 |
|
5,505 |
|
8,111 |
|
|
Other comprehensive income: |
|
|
|
|
|
|
|
|
|
|
Items that will not be reclassified subsequently to the income statement |
|
|
|
|
|
|
|
|
|
|
Retirement benefit obligations |
|
(208 |
) |
(644 |
) |
(32 |
) |
(715 |
) |
|
Fair value adjustment to investment in equity securities |
|
285 |
|
— |
|
171 |
|
— |
|
|
Transfer to retained earnings |
|
16 |
|
— |
|
(51 |
) |
— |
|
|
Total items that will not be reclassified subsequently to the income statement, net of tax |
|
93 |
|
(644 |
) |
88 |
|
(715 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Items that may be reclassified subsequently to the income statement |
|
|
|
|
|
|
|
|
|
|
Translation adjustments |
|
14,908 |
|
4,345 |
|
14,969 |
|
2,109 |
|
|
Net investments hedge |
|
(1,934 |
) |
(836 |
) |
(2,030 |
) |
(277 |
) |
|
Transfer of realized results to net income |
|
— |
|
— |
|
(257 |
) |
— |
|
|
Total of items that may be reclassified subsequently to the income statement, net of tax |
|
12,974 |
|
3,509 |
|
12,682 |
|
1,832 |
|
|
Total comprehensive income |
|
13,398 |
|
3,034 |
|
18,275 |
|
9,228 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income attributable to noncontrolling interests |
|
240 |
|
275 |
|
318 |
|
192 |
|
|
Comprehensive income attributable to Vale’s stockholders |
|
13,158 |
|
2,759 |
|
17,957 |
|
9,036 |
|
|
From continuing operations |
|
13,158 |
|
2,731 |
|
17,941 |
|
9,036 |
|
|
From discontinued operations |
|
— |
|
28 |
|
16 |
|
— |
|
|
|
|
13,158 |
|
2,759 |
|
17,957 |
|
9,036 |
|
|
|
|
Parent company |
| ||||||
|
|
|
Three-month period ended |
|
Six-month period ended |
| ||||
|
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
Net income |
|
306 |
|
60 |
|
5,418 |
|
7,951 |
|
|
Other comprehensive income: |
|
|
|
|
|
|
|
|
|
|
Items that will not be reclassified subsequently to the income statement |
|
|
|
|
|
|
|
|
|
|
Retirement benefit obligations |
|
(28 |
) |
(14 |
) |
(37 |
) |
(27 |
) |
|
Fair value adjustment to investment in equity securities |
|
235 |
|
— |
|
149 |
|
— |
|
|
Equity results in associates and joint ventures |
|
(130 |
) |
(630 |
) |
27 |
|
(688 |
) |
|
Transfer to retained earnings |
|
16 |
|
— |
|
(51 |
) |
— |
|
|
Total items that will not be reclassified subsequently to the income statement, net of tax |
|
93 |
|
(644 |
) |
88 |
|
(715 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Items that may be reclassified subsequently to the income statement |
|
|
|
|
|
|
|
|
|
|
Translation adjustments |
|
14,693 |
|
4,179 |
|
14,593 |
|
2,077 |
|
|
Net investments hedge |
|
(1,934 |
) |
(836 |
) |
(2,030 |
) |
(277 |
) |
|
Transfer of realized results to net income |
|
— |
|
— |
|
(112 |
) |
— |
|
|
Total of items that may be reclassified subsequently to the income statement, net of tax |
|
12,759 |
|
3,343 |
|
12,451 |
|
1,800 |
|
|
Total comprehensive income |
|
13,158 |
|
2,759 |
|
17,957 |
|
9,036 |
|
Items above are stated net of tax and the related taxes are disclosed in note 7.
The accompanying notes are an integral part of these interim financial statements.
In millions of Brazilian reais
|
|
|
Consolidated |
| ||||||
|
|
|
Three-month period ended |
|
Six-month period ended |
| ||||
|
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from operating activities: |
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes from continuing operations |
|
(1,923 |
) |
401 |
|
5,861 |
|
10,816 |
|
|
Continuing operations adjustments for: |
|
|
|
|
|
|
|
|
|
|
Equity results in associates and joint ventures |
|
(177 |
) |
83 |
|
(450 |
) |
(142 |
) |
|
Impairment and other results on non-current assets and associates and joint ventures |
|
1,537 |
|
836 |
|
1,633 |
|
(576 |
) |
|
Depreciation, amortization and depletion |
|
3,112 |
|
2,907 |
|
5,946 |
|
5,758 |
|
|
Financial results, net |
|
10,930 |
|
4,341 |
|
13,001 |
|
6,235 |
|
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
589 |
|
4,377 |
|
630 |
|
5,347 |
|
|
Inventories |
|
(885 |
) |
(787 |
) |
(732 |
) |
(1,495 |
) |
|
Suppliers and contractors |
|
(205 |
) |
791 |
|
(1,377 |
) |
1,101 |
|
|
Provision - Payroll, related charges and others remunerations |
|
626 |
|
568 |
|
(1,027 |
) |
(153 |
) |
|
Proceeds from cobalt stream transaction |
|
2,603 |
|
— |
|
2,603 |
|
— |
|
|
Other assets and liabilities, net |
|
(1,512 |
) |
(360 |
) |
(1,815 |
) |
(964 |
) |
|
|
|
14,695 |
|
13,157 |
|
24,273 |
|
25,927 |
|
|
Interest on loans and borrowings paid |
|
(994 |
) |
(1,351 |
) |
(2,231 |
) |
(2,946 |
) |
|
Derivatives paid, net |
|
37 |
|
(15 |
) |
(43 |
) |
(353 |
) |
|
Interest on participative stockholders’ debentures paid |
|
(245 |
) |
(221 |
) |
(245 |
) |
(221 |
) |
|
Income taxes |
|
(168 |
) |
(101 |
) |
(941 |
) |
(1,257 |
) |
|
Income taxes - Settlement program |
|
(409 |
) |
(387 |
) |
(813 |
) |
(766 |
) |
|
Net cash provided by operating activities from continuing operations |
|
12,916 |
|
11,082 |
|
20,000 |
|
20,384 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from investing activities: |
|
|
|
|
|
|
|
|
|
|
Financial investments redeemed (invested) |
|
(28 |
) |
115 |
|
(80 |
) |
(52 |
) |
|
Loans and advances - net receipts (payments) (note 25) |
|
(355 |
) |
(314 |
) |
8,296 |
|
(769 |
) |
|
Additions to property, plant and equipment, intangibles and investments |
|
(2,558 |
) |
(3,933 |
) |
(5,501 |
) |
(7,449 |
) |
|
Proceeds from disposal of assets and investments (note 12) |
|
925 |
|
28 |
|
4,461 |
|
1,642 |
|
|
Dividends and interest on capital received from associates and joint ventures |
|
505 |
|
266 |
|
538 |
|
266 |
|
|
Others investments activities |
|
(59 |
) |
(64 |
) |
(8 |
) |
(68 |
) |
|
Net cash provided by (used in) investing activities from continuing operations |
|
(1,570 |
) |
(3,902 |
) |
7,706 |
|
(6,430 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from financing activities: |
|
|
|
|
|
|
|
|
|
|
Loans and borrowings |
|
|
|
|
|
|
|
|
|
|
Additions |
|
2,814 |
|
963 |
|
2,814 |
|
4,539 |
|
|
Repayments |
|
(9,365 |
) |
(5,899 |
) |
(16,813 |
) |
(9,432 |
) |
|
Transactions with stockholders: |
|
|
|
|
|
|
|
|
|
|
Dividends and interest on capital paid to stockholders |
|
— |
|
(4,660 |
) |
(4,721 |
) |
(4,660 |
) |
|
Dividends and interest on capital paid to noncontrolling interest |
|
(20 |
) |
(14 |
) |
(310 |
) |
(23 |
) |
|
Transactions with noncontrolling stockholders |
|
— |
|
— |
|
(56 |
) |
799 |
|
|
Net cash used in financing activities from continuing operations |
|
(6,571 |
) |
(9,610 |
) |
(19,086 |
) |
(8,777 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in discontinued operations (note 12) |
|
(7 |
) |
(152 |
) |
(157 |
) |
(167 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Increase (decrease) in cash and cash equivalents |
|
4,768 |
|
(2,582 |
) |
8,463 |
|
5,010 |
|
|
Cash and cash equivalents in the beginning of the period |
|
17,841 |
|
21,279 |
|
14,318 |
|
13,891 |
|
|
Effect of exchange rate changes on cash and cash equivalents |
|
2,002 |
|
225 |
|
2,161 |
|
65 |
|
|
Effects of disposals of subsidiaries and merger, net on cash and cash equivalents |
|
(54 |
) |
— |
|
(385 |
) |
(44 |
) |
|
Cash and cash equivalents at end of the period |
|
24,557 |
|
18,922 |
|
24,557 |
|
18,922 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash transactions: |
|
|
|
|
|
|
|
|
|
|
Additions to property, plant and equipment - capitalized loans and borrowing costs |
|
160 |
|
265 |
|
354 |
|
587 |
|
The accompanying notes are an integral part of these interim financial statements.
Statement of Cash Flows
In millions of Brazilian reais
|
|
|
Parent company |
| ||
|
|
|
Six-month period ended June 30, |
| ||
|
|
|
2018 |
|
2017 |
|
|
|
|
(Restated) |
| ||
|
Cash flow from operating activities: |
|
|
|
|
|
|
Income before income taxes from continuing operations |
|
3,558 |
|
10,586 |
|
|
Continuing operations adjustments for: |
|
|
|
|
|
|
Equity results in subsidiaries, associates and joint ventures |
|
(4,023 |
) |
(1,758 |
) |
|
Impairment and other results on non-current assets and associates and joint ventures |
|
1,815 |
|
360 |
|
|
Depreciation, amortization and depletion |
|
2,903 |
|
2,693 |
|
|
Financial results, net |
|
13,077 |
|
6,164 |
|
|
Changes in assets and liabilities: |
|
|
|
|
|
|
Accounts receivable |
|
1,547 |
|
12,695 |
|
|
Inventories |
|
(60 |
) |
(373 |
) |
|
Suppliers and contractors |
|
698 |
|
28 |
|
|
Provision - Payroll, related charges and others remunerations |
|
(577 |
) |
(54 |
) |
|
Other assets and liabilities, net |
|
151 |
|
(779 |
) |
|
|
|
19,089 |
|
29,562 |
|
|
Interest on loans and borrowings paid |
|
(1,028 |
) |
(2,978 |
) |
|
Derivatives paid, net |
|
(112 |
) |
(132 |
) |
|
Interest on participative stockholders’ debentures paid |
|
(245 |
) |
(221 |
) |
|
Income taxes |
|
(30 |
) |
(678 |
) |
|
Income taxes - Settlement program |
|
(796 |
) |
(750 |
) |
|
Net cash provided by operating activities |
|
16,878 |
|
24,803 |
|
|
|
|
|
|
|
|
|
Cash flow from investing activities: |
|
|
|
|
|
|
Financial investments redeemed (invested) |
|
(74 |
) |
(97 |
) |
|
Loans and advances - net receipts (payments) |
|
(1,752 |
) |
(4,528 |
) |
|
Additions to property, plant and equipment, intangibles and investments |
|
(4,527 |
) |
(4,650 |
) |
|
Proceeds from disposal of assets and investments (note 12) |
|
414 |
|
15 |
|
|
Dividends and interest on capital received from subsidiaries, associates and joint ventures |
|
1,998 |
|
424 |
|
|
Others investments activities |
|
(55 |
) |
(54 |
) |
|
Net cash used in investing activities |
|
(3,996 |
) |
(8,890 |
) |
|
|
|
|
|
|
|
|
Cash flow from financing activities: |
|
|
|
|
|
|
Loans and borrowings |
|
|
|
|
|
|
Additions |
|
2,814 |
|
321 |
|
|
Repayments |
|
(8,433 |
) |
(8,897 |
) |
|
Transactions with stockholders: |
|
|
|
|
|
|
Dividends and interest on capital paid to stockholders |
|
(4,721 |
) |
(4,660 |
) |
|
Net cash used in financing activities |
|
(10,340 |
) |
(13,236 |
) |
|
|
|
|
|
|
|
|
Increase in cash and cash equivalents |
|
2,542 |
|
2,677 |
|
|
Cash and cash equivalents in the beginning of the period |
|
1,876 |
|
1,203 |
|
|
Cash and cash equivalents at end of the period |
|
4,418 |
|
3,880 |
|
|
|
|
|
|
|
|
|
Non-cash transactions: |
|
|
|
|
|
|
Additions to property, plant and equipment - capitalized loans and borrowing costs |
|
353 |
|
585 |
|
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 |
|
June 30, |
|
December 31, |
|
June 30, |
|
December 31, |
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
16 |
|
24,557 |
|
14,318 |
|
4,418 |
|
1,876 |
|
|
Accounts receivable |
|
9 |
|
9,052 |
|
8,602 |
|
10,207 |
|
9,560 |
|
|
Other financial assets |
|
11 |
|
1,850 |
|
6,689 |
|
368 |
|
409 |
|
|
Inventories |
|
10 |
|
15,418 |
|
12,987 |
|
4,807 |
|
4,601 |
|
|
Prepaid income taxes |
|
|
|
2,534 |
|
2,584 |
|
2,159 |
|
2,378 |
|
|
Recoverable taxes |
|
|
|
3,944 |
|
3,876 |
|
2,065 |
|
2,091 |
|
|
Others |
|
|
|
2,284 |
|
1,780 |
|
1,252 |
|
1,542 |
|
|
|
|
|
|
59,639 |
|
50,836 |
|
25,276 |
|
22,457 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current assets held for sale |
|
12 |
|
— |
|
11,865 |
|
— |
|
7,082 |
|
|
|
|
|
|
59,639 |
|
62,701 |
|
25,276 |
|
29,539 |
|
|
Non-current assets |
|
|
|
|
|
|
|
|
|
|
|
|
Judicial deposits |
|
22(c) |
|
6,726 |
|
6,571 |
|
6,313 |
|
6,110 |
|
|
Other financial assets |
|
11 |
|
11,728 |
|
10,690 |
|
4,988 |
|
1,865 |
|
|
Prepaid income taxes |
|
|
|
1,948 |
|
1,754 |
|
— |
|
— |
|
|
Recoverable taxes |
|
|
|
2,174 |
|
2,109 |
|
2,128 |
|
2,062 |
|
|
Deferred income taxes |
|
7(a) |
|
25,199 |
|
21,959 |
|
17,454 |
|
14,200 |
|
|
Others |
|
|
|
1,170 |
|
882 |
|
1,420 |
|
810 |
|
|
|
|
|
|
48,945 |
|
43,965 |
|
32,303 |
|
25,047 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments |
|
13 |
|
12,441 |
|
11,802 |
|
138,699 |
|
117,387 |
|
|
Intangibles |
|
14 |
|
30,805 |
|
28,094 |
|
15,201 |
|
13,471 |
|
|
Property, plant and equipment |
|
15 |
|
187,816 |
|
181,535 |
|
101,335 |
|
102,978 |
|
|
|
|
|
|
280,007 |
|
265,396 |
|
287,538 |
|
258,883 |
|
|
Total assets |
|
|
|
339,646 |
|
328,097 |
|
312,814 |
|
288,422 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
Suppliers and contractors |
|
|
|
13,832 |
|
13,367 |
|
7,826 |
|
7,503 |
|
|
Loans and borrowings |
|
16 |
|
7,027 |
|
5,633 |
|
5,655 |
|
4,378 |
|
|
Other financial liabilities |
|
11 |
|
3,070 |
|
3,260 |
|
5,073 |
|
4,413 |
|
|
Taxes payable |
|
7(c) |
|
2,469 |
|
2,307 |
|
2,081 |
|
1,991 |
|
|
Provision for income taxes |
|
|
|
982 |
|
1,175 |
|
— |
|
— |
|
|
Liabilities related to associates and joint ventures |
|
17 |
|
1,051 |
|
1,080 |
|
1,051 |
|
1,080 |
|
|
Provisions |
|
21 |
|
3,875 |
|
4,610 |
|
2,203 |
|
2,904 |
|
|
Dividends and interest on capital |
|
|
|
— |
|
4,742 |
|
— |
|
4,439 |
|
|
Others |
|
|
|
3,115 |
|
3,284 |
|
2,881 |
|
2,552 |
|
|
|
|
|
|
35,421 |
|
39,458 |
|
26,770 |
|
29,260 |
|
|
Liabilities associated with non-current assets held for sale |
|
12 |
|
— |
|
3,899 |
|
— |
|
— |
|
|
|
|
|
|
35,421 |
|
43,357 |
|
26,770 |
|
29,260 |
|
|
Non-current liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
Loans and borrowings |
|
16 |
|
62,016 |
|
68,759 |
|
25,076 |
|
28,966 |
|
|
Other financial liabilities |
|
11 |
|
11,539 |
|
9,575 |
|
65,406 |
|
54,955 |
|
|
Taxes payable |
|
7(c) |
|
15,696 |
|
16,176 |
|
15,383 |
|
15,853 |
|
|
Deferred income taxes |
|
7(a) |
|
6,472 |
|
5,687 |
|
— |
|
— |
|
|
Provisions |
|
21 |
|
25,317 |
|
23,243 |
|
7,798 |
|
6,900 |
|
|
Liabilities related to associates and joint ventures |
|
17 |
|
3,449 |
|
2,216 |
|
3,449 |
|
2,216 |
|
|
Deferred revenue - Gold stream |
|
|
|
6,649 |
|
6,117 |
|
— |
|
— |
|
|
Others |
|
|
|
7,749 |
|
4,861 |
|
7,217 |
|
6,514 |
|
|
|
|
|
|
138,887 |
|
136,634 |
|
124,329 |
|
115,404 |
|
|
Total liabilities |
|
|
|
174,308 |
|
179,991 |
|
151,099 |
|
144,664 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity |
|
24 |
|
|
|
|
|
|
|
|
|
|
Equity attributable to Vale’s stockholders |
|
|
|
161,715 |
|
143,758 |
|
161,715 |
|
143,758 |
|
|
Equity attributable to noncontrolling interests |
|
|
|
3,623 |
|
4,348 |
|
— |
|
— |
|
|
Total stockholders’ equity |
|
|
|
165,338 |
|
148,106 |
|
161,715 |
|
143,758 |
|
|
Total liabilities and stockholders’ equity |
|
|
|
339,646 |
|
328,097 |
|
312,814 |
|
288,422 |
|
The accompanying notes are an integral part of these interim financial statements.
Statement of Changes in Equity
In millions of Brazilian reais
|
|
|
Share capital |
|
Results on |
|
Capital |
|
Results from |
|
Profit |
|
Treasury |
|
Unrealized |
|
Cumulative |
|
Retained |
|
Equity |
|
Equity |
|
Total |
|
|
Balance at December 31, 2017 |
|
77,300 |
|
50 |
|
3,634 |
|
(2,663 |
) |
24,539 |
|
(2,746 |
) |
(3,912 |
) |
47,556 |
|
— |
|
143,758 |
|
4,348 |
|
148,106 |
|
|
Net income |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
5,418 |
|
5,418 |
|
87 |
|
5,505 |
|
|
Other comprehensive income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retirement benefit obligations |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(32 |
) |
— |
|
(51 |
) |
(83 |
) |
— |
|
(83 |
) |
|
Net investments hedge (note 20c) |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(2,030 |
) |
— |
|
(2,030 |
) |
— |
|
(2,030 |
) |
|
Translation adjustments |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(257 |
) |
14,738 |
|
— |
|
14,481 |
|
231 |
|
14,712 |
|
|
Fair value adjustment to investment in equity securities |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
171 |
|
— |
|
— |
|
171 |
|
— |
|
171 |
|
|
Transactions with stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends of noncontrolling interest |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(312 |
) |
(312 |
) |
|
Acquisitions and disposal of noncontrolling interest |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(751 |
) |
(751 |
) |
|
Capitalization of noncontrolling interest advances |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
20 |
|
20 |
|
|
Balance at June 30, 2018 |
|
77,300 |
|
50 |
|
3,634 |
|
(2,663 |
) |
24,539 |
|
(2,746 |
) |
(4,030 |
) |
60,264 |
|
5,367 |
|
161,715 |
|
3,623 |
|
165,338 |
|
|
|
|
Share capital |
|
Results on |
|
Capital |
|
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 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
7,951 |
|
7,951 |
|
160 |
|
8,111 |
|
|
Other comprehensive income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retirement benefit obligations |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(715 |
) |
— |
|
— |
|
(715 |
) |
— |
|
(715 |
) |
|
Net investments hedge (note 20c) |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(277 |
) |
— |
|
(277 |
) |
— |
|
(277 |
) |
|
Translation adjustments |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(30 |
) |
2,107 |
|
— |
|
2,077 |
|
32 |
|
2,109 |
|
|
Transactions with stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends and interest on capital of Vale’s stockholders |
|
— |
|
— |
|
— |
|
— |
|
(2,065 |
) |
— |
|
— |
|
— |
|
— |
|
(2,065 |
) |
— |
|
(2,065 |
) |
|
Dividends of noncontrolling interest |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(336 |
) |
(336 |
) |
|
Acquisitions and disposal of noncontrolling interest |
|
— |
|
— |
|
— |
|
(329 |
) |
— |
|
— |
|
— |
|
— |
|
— |
|
(329 |
) |
(1,672 |
) |
(2,001 |
) |
|
Capitalization of noncontrolling interest advances |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
84 |
|
84 |
|
|
Balance at June 30, 2017 |
|
77,300 |
|
50 |
|
— |
|
(2,199 |
) |
11,633 |
|
(2,746 |
) |
(4,484 |
) |
46,378 |
|
7,951 |
|
133,883 |
|
4,729 |
|
138,612 |
|
The accompanying notes are an integral part of these interim financial statements.
In millions of Brazilian Reais
|
|
|
Consolidated |
|
Parent company |
| ||||
|
|
|
Six-month period ended June 30, |
| ||||||
|
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
Generation of value added from continuing operations |
|
|
|
|
|
|
|
|
|
|
Gross revenue |
|
|
|
|
|
|
|
|
|
|
Revenue from products and services |
|
59,952 |
|
50,800 |
|
34,678 |
|
33,172 |
|
|
Impairment and other results on non-current assets |
|
(42 |
) |
877 |
|
(224 |
) |
(68 |
) |
|
Revenue from the construction of own assets |
|
5,023 |
|
3,144 |
|
3,422 |
|
2,875 |
|
|
Allowance for doubtful accounts |
|
(17 |
) |
(14 |
) |
(4 |
) |
6 |
|
|
Other revenues |
|
7,057 |
|
264 |
|
3,107 |
|
195 |
|
|
Less: |
|
|
|
|
|
|
|
|
|
|
Acquisition of products |
|
(781 |
) |
(1,027 |
) |
(356 |
) |
(343 |
) |
|
Material, service and maintenance |
|
(15,474 |
) |
(12,423 |
) |
(8,917 |
) |
(8,165 |
) |
|
Oil and gas |
|
(2,523 |
) |
(1,967 |
) |
(1,652 |
) |
(1,348 |
) |
|
Energy |
|
(1,661 |
) |
(1,434 |
) |
(839 |
) |
(674 |
) |
|
Freight |
|
(6,353 |
) |
(4,566 |
) |
(75 |
) |
(42 |
) |
|
Impairment and other results in associates and joint ventures |
|
(1,591 |
) |
(301 |
) |
(1,591 |
) |
(292 |
) |
|
Other costs and expenses |
|
(8,430 |
) |
(3,051 |
) |
(4,980 |
) |
(1,085 |
) |
|
Gross value added |
|
35,160 |
|
30,302 |
|
22,569 |
|
24,231 |
|
|
Depreciation, amortization and depletion |
|
(5,946 |
) |
(5,758 |
) |
(2,903 |
) |
(2,693 |
) |
|
Net value added |
|
29,214 |
|
24,544 |
|
19,666 |
|
21,538 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Received from third parties |
|
|
|
|
|
|
|
|
|
|
Equity results from entities |
|
450 |
|
142 |
|
4,023 |
|
1,758 |
|
|
Financial income |
|
669 |
|
571 |
|
105 |
|
212 |
|
|
Monetary and exchange variation of assets |
|
2,276 |
|
156 |
|
2,623 |
|
18 |
|
|
Total value added from continuing operations to be distributed |
|
32,609 |
|
25,413 |
|
26,417 |
|
23,526 |
|
|
Value added from discontinued operations to be distributed |
|
63 |
|
251 |
|
— |
|
— |
|
|
Total value added to be distributed |
|
32,672 |
|
25,664 |
|
26,417 |
|
23,526 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Personnel |
|
4,385 |
|
3,651 |
|
2,289 |
|
1,720 |
|
|
Taxes and contributions |
|
5,142 |
|
4,247 |
|
2,688 |
|
3,045 |
|
|
Current income tax |
|
755 |
|
1,807 |
|
— |
|
1,066 |
|
|
Deferred income tax |
|
(709 |
) |
253 |
|
(2,170 |
) |
911 |
|
|
Financial expense (excludes capitalized interest) |
|
5,614 |
|
5,138 |
|
5,397 |
|
6,165 |
|
|
Monetary and exchange variation of liabilities |
|
10,289 |
|
1,750 |
|
10,344 |
|
1,009 |
|
|
Other remunerations of third party funds |
|
1,628 |
|
469 |
|
2,451 |
|
1,659 |
|
|
Reinvested net income |
|
5,418 |
|
7,951 |
|
||||