Strategic Planning

In 2017, we followed up on action plans that included strategies we established in 2015, when we defined three drivers that will allow us to expand competitively – Growth, Operational Excellence, and Market Development. To assist in the execution of this strategy, we have set seven enablers: People and Organization, Sustainability, Project Management, Risk Management, Technology and Automation, Supplies and Logistics, and Capital Structure.

Coordinated by our executive board on Sustainability, Corporate Management, and Strategic Planning, we are amplifying the way we are pursuing these initiatives, and thereby placing greater focus on the execution of these activities. Three points are notable about this process:

❯ Clear responsibilities: Each of the three strategic drivers and seven enablers have a sponsor and each initiative has a leader responsible for implementing follow-up measures;

❯ Group interactions: Representatives from all units and support areas meet to obtain progress updates, review key performance indicators, and discuss new projects;

❯ Frequent follow-up: The Board of Directors and the Executive Board regularly evaluate action plan activities, making adjustments to individual initiatives, as necessary and appropriate to achieve accelerated progress and success.

Growth with Competitiveness

Enablers

People and Organization

❯ Cultivate talent and promote inspiring leaders
❯ Ensure critical capabilities within the organization, their ongoing evaluation and improvement
❯ Increase productivity and competitiveness
❯ Enhance effective governance and organizational competencies
❯ Promote positive, constructive relationships with all stakeholders

Sustainability

❯ Fortify a safety and health culture
❯ Create shared value with society
❯ Reduce environmental impacts
❯ Contribute to the local development of the territories where we operate

Project Management

❯ Ensure the development, implementation and successful fulfillment of projects
❯ Develop a long-term investment plan

Risk Management

❯ Identify and manage key risks from operational and strategic perspectives
❯ Reduce and mitigate impacts mainly through preventive systems
❯ Monitor volatility and discuss appropriate actions

Technology and Automation

❯ Raise the level of efficiency and stability of operational processes through technological and automation solutions
❯ Seek out technologies to achieve greater eco-efficiency (eliminating the need for dams, reducing waste generation, decreasing GHG emissions, etc.)
❯ Facilitate utilization of low-grade ores and make the use of raw materials more flexible (including the energy matrix)
❯ Pursue automation as a driver of competitiveness, growth, and a safer working environment

Supplies and Logistics

❯ Generate competitive advantage for operations, processes, and projects (supplies and logistics as strategic partner)
❯ Act as a solutions facilitator to establish a better and more sustainable customer-supplier relationship
❯ Select the best option between services performed internally and those that are available through outsourcing
❯ Create innovations in processes, tools, and information

Capital Structure

❯ Optimize cash management, ensuring liquidity and availability
❯ Ensure adequate working capital for the organization
❯ Guarantee financial resources (capital and debt) in accordance with Nexa’s strategic activities