IAS 21 para 53, presentation currency different from functional currency and reasons

Vale S.A. – Annual report – 31 December 2017

Industry: mining

2. Basis for preparation of the financial statements (extract)

d) Functional currency and presentation currency (extract)

The financial statements of the Company and its associates and joint ventures are measured using the currency of the primary economic environment in which the entity operates (“functional currency”), which in the case of the Parent Company is the Brazilian real (“R$”). For presentation purposes, these financial statements are presented in United States dollar (“US$”) as the Company believes that this is how international investors analyze the financial statements.