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AYO/ JUNE 2012

DRIVING REAL CHANGE TALENT MANAGEMENT

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VALE: AGENDA

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VALE: GLOBAL EXPANSION IN THE WORLD OF MINING

“BCG says it has created more

value than any other large firm in

the world over the past decade.”

“…Vale has kept its success quiet

is partly an accident of history…”

“Vale relies on iron ore for

65% of its revenue…”

“Iron ore is easy to extract, bulky

and relatively cheap. The trick is to

transport vast quantities around the

globe quickly. At this, Vale excels”

“Vale has plans for organic

expansion in nickel, copper, coal and

potash. Demand for all these

minerals is likely to surge as poor

countries get rich…”

“Rumours suggest that these will

involve capital spending of up to

$100 billion over the next five years –

most of it in Brazil”

SEPTEMBER 25TH-1ST OCTOBER 2010

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VALE HISTORY: PATH TO SUCCESS

1942

1997

1997

2001

2001

2010

2010 ...

Aggressive growth focused on profitability and value creation.

New organizational structure, centralizing corporate services (Purchasing, HR and IT)

Well-defined governance.

Product portfolio expansion, diversification and internationalization.

Implementation of management model based on key performance indicators and strategic

planning process.

• Transition phase focused on operational costs reduction, usually higher on state-owned companies. No growth strategy defined

• Governance issues and conflicts of interests among shareholders

• Net profit in 1997: US$350 million

• Market value in 1997: US$10.5 billion

• High government interference at company’s management and decisions, although lower than that in other state-owned companies

• Strategy focused on iron ore, along with additional investments in sectors considered to be priorities by the government (e.g. pulp and paper)

State-owned company

Privatization

Accelerated Growth

Implementation of the largest project portfolio in the mining sector

Goal to become the best and the largest mining company in the world

The best and most sustainable mining company in the world

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VALE: A DIVERSIED BUSINESS PORTFOLIO

LOGISTICS NICKEL FERTILIZERS IRON ORE

COPPER COAL STEEL MINORITY

INVESTMENTS CLEAN

ENERGY

323 million tons

(2011)

242 thousand tons

(2011)

7.4 million tons of phosphate

rock (2011)

302 thousand tons

(2011) 4.51 / 2.82 million tons (2011)

Operation of ports and ~

10 thousand Km of railroads

2 operations (joint-ventures)

and 3 projects

Hydro Plants in Brazil, Canada

and Indonesia

¹ Thermal Coal 2 Metallurgical Coal

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VALE TODAY: MINING POWERHOUSE

# 1 global Iron ore producer

# 2 world nickel producer

# 2 metals and mining company in the world

# 21 company in the world1

Market cap of US$ 114 bn, on May 07, 2012

20 hours/day of trading: BM&F Bovespa, NYSE, Euronext and HKEx

3rd most traded ADRs in the NYSE in 2011, ranked by trading volume

Revenues (2011): US$ 60.4 Bn

EBITDA (2011): US$ 33.8 Bn

Net Earnings (2011): US$ 22.9 Bn

180

114

101

54

48

45

36

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20 TECK RESOURCES

MOSAIC

POTASH CORP

GLENCORE

ANGLO AMERICAN

XSTRATA

RIO TINTO

VALE

BHPB

Market capitalization2

US$ bn

1

2

3

4

5

6

7

8

9

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¹ Ranking of the 500 largest companies in the world by market cap – Financial Times 2As of May 07th, 2012

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7 ¹ Vale’s employees including third parties

VALE IN 2012: A GLOBAL COMPANY +135K EE¹ WORLDWIDE

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VALE: AGENDA

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VALE: VALUES

Our Values:

Passion for people: Life matters most, Value our People, Prize our Planet

Excellence: Do what is Right, Improve Together, Make it happen

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VALE: AGENDA

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VALE: HUMAN RESOURCES MODEL

CORPORATE

HUMAN RESOURCES & CoE

Defines global standards in line with HR best practices and strategies in Vale

Focus: Innovation

REGIONAL

HUMAN RESOURCES (HRBP)

Performs HR processes regionally

Focus: Business Relationship

SHARED SERVICES

ORGANIZATION (SSO)

Performs HR transactional processes

Focus: Gains Scale and Scope

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VALE: AGENDA

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VALE: TALENT MANAGEMENT

TALENT MANAGEMENT:

Talent Management at Vale aims to meet the specific needs and support

the strategies of each business through an integrated value chain,

which involves attracting, recruiting, developing and engaging talent, to

ensure that the right people with the right skills are available at the right

time and place.

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VALE: TALENT MANAGEMENT

BUSINESS STRATEGY

AND PEOPLE

MANAGEMENT

GOALS

PLAN

ATTRACT &

RECRUIT

IDENTIFY &

ASSESS

DEVELOP &

PROMOTE

ENGAGE

&

AFFILIATE EXIT

TALENT MANAGEMENT REQUIRES TAKING CARE OF

EMPLOYEES THROUGHOUT THEIR ENTIRE LIFE CYCLE

Detailed and accurate planning of

our segmented talent needs,

including number of individuals,

timing and qualifications

Vale’s Employer Value

Proposition articulated to ensure

effective attraction and recruiting

of critical talent

Talent identified throughout the

organization, receiving a fair and

constructive assessment and

continuous feedback

Development plans clearly linked to individual assessment

Clear visibility regarding career paths and requirements for promotion

All talent fully engaged and

committed to Vale’s strategy and

goals, with Leaders serving as

role models of our values

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DITD

DIRECTORY OF TALENT MANAGEMENT & PEOPLE DEVELOPMENT

ATTRACTION & ENGAGEMENT

VALER: VALE EDUCATION CENTRE

CAREER & SUCCESSION PLANNING

VALE: DIRECTORY OF TALENT AND DEVELOPMENT

MANAGING

ENTRY AND

RETENTION

MANAGING

TRAINING AND

DEVELOPMENT

MANAGING

CAREER AND

SUCCESSION

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VALE: AGENDA

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ACADEMY OF MANAGEMENT EXECUTIVE(1996)

VALE: DEFINITION OF CAREER

A course of professional advancement; usage restricted

to occupations with formal hierarchical progression, such

as managers and professionals

OLD MEANING

The unfolding sequence of any person´s work

experiences of time

NEW MEANING

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VALE: OUR CAREER DEFINITION

A series of experiments, learning, positions held

and work done throughout one’s life, resulting in a

single career path.

A career involves a series of stages and occurrence

transitions that reflect the needs, motives, aspirations,

expectations and constraints of the company.

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VALE: CAREER MANAGEMENT

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High Performer Solid Performer Lower Performer

High Performer with Potential Performer with Potential Inconsistent Performer

Exceptional Talent Talent Potential Talent

High Performance Solid Performance Low Performance

Solid Performance

with Potential Low Performance

with Potential

High Performance

with High Potential

Solid Performance

with High Potential

Low Performance

with High Potential

COMPETENCY

AT

PO

TE

NT

IAL

-

HIG

H P

OT

EN

TIA

L

(2 L

EV

EL

S)

PR

OM

OT

AB

LE

(1 L

EV

EL

)

PO

TE

NT

IAL

0 – 2,65 2,66 – 3,64 3,65 – 5,00

High Performance

with Potential

VALE: C&S RESULTS OF ASSESSMENT IN 9 BOX MATRIX

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VALE: C&S APPLICATION TOOL

TALENT POOL

TALENT SEARCH

EMPLOYEE PROFILE

(CV, BIO, HISTORY)

ASSESSMENT HISTORY

PERFORMANCE HISTORY

SUCCESSION INDICATION

DEVELOPMENT PLAN (LMS)

OUR CATALYST THAT IS “DRIVING” THIS CHANGE

SUCCESSFACTORS APPLICATION:

ALSO KNOWN INTERNALY AS

“CSP”

A TOOL THAT CONSOLIDATES

CAREER DATA GLOBALLY

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VALE INNOVATION AWARD

VALE: WINNER OF BizX INNOVATION CATEGORY AT THE 2011 SUCCESS CONNECT CONFERENCE

SHARING OUR SUCCESS STORY IN GROWING

GLOBALLY AND PROVIDING EMPLOYEES A UNIFIED APPLICATION FOR THEIR SUCCESS

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VALE: C&S APPLICATION TOOL

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THANK YOU!

VALE VISION

TO BE THE NUMBER ONE GLOBAL NATURAL RESOURCES COMPANY IN CREATING LONG TERM VALUE, THROUGH EXCELLENCE, WITH PASSION FOR PEOPLE AND THE PLANET.

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VALE: AGENDA

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VALE: QUESTIONS?