Message from the Board
of Directors
GRI 102-10, 102-14

We have sought to move closer to our investors, who have made important contributions to our planning. At the same time, we have set out to inform the market more clearly about our zinc and copper business
In 2018, we completed one year as a publicly traded company on two of the world’s most important stock exchanges – New York and Toronto -, which instilled in us a global market vision and also served as a great learning experience for improving our governance.

We consolidated the activities of the Board of Directors, with the participation of four independent members, fully active advisory committees and the review of fundamental policies for the good functioning of the organization. The diversity we seek in our company is mirrored in the formation of our Board, composed of seven men and two women representing five nationalities – Brazilian, Canadian, American, Croatian and Chilean.

As we complete the process initiated with the 2018 Strategic Dialogue, held every three years, we have strengthened our corporate attributes and ensured the guidelines for our journey into the future. Our aspirations for the coming years are marked by the desire to be globally perceived as an intelligent and trustworthy company, one that consistently delivers attractive results. Being intelligent means finding simple solutions to our challenges through transformational technologies and processes, moving towards becoming an increasingly better company. And being trustworthy is the commitment to plan what we do and deliver what we promise, as well as co-creating a legacy alongside society.

We approved our Compliance Program over the course of the year, revised and optimized to adhere to the laws of all the countries in which we operate. As part of the program, we have published four new policies – Anti- Corruption, Anti-Money Laundering and Anti-Terrorism, Antitrust and Compliance – and nine internal procedures detailing how to manage these issues. The documents address aspects such as human rights, political contributions, conflicts of interest and employee rights and duties, reinforcing our commitment to the United Nations Global Compact.

Our Code of Conduct, based on the values of Votorantim S.A., our largest shareholder, has been reviewed and made public both internally and externally. It guides the behavior we desire from our employees, third parties and suppliers, so that the challenges are faced ethically and with a social and citizenship-based conscience. Votorantim completed its 100th anniversary in 2018, an uncommon milestone in Brazilian corporate history. The transformation and renewal capacity, long-term vision and commitment to the future mark the performance of all of companies in which Votorantim has invested, such as Nexa, in which it owns 64.3% of the capital and inspired this centennial celebration.

We have sought to move closer to our investors, who have made important contributions to our planning. At the same time, we have set out to inform the market more clearly about our zinc and copper business, which has characteristics that are distinct from most of the players in the mining arena. We have organized numerous contacts and meetings with analysts, investors and banks to make our goals, strategies and way of operating transparent. This is a challenge that extends into 2019.

From the internal point of view, we had some operational challenges in Peru that are already being addressed, as well as strong investment in research into new projects, extending the life of our mines; furthermore, we have taken actions to introduce new processes and technologies that make our mining and smelting operations increasingly more productive.

In the external scenario, we had to coexist with the volatility of metal prices on the London Metal Exchange (LME), which also influenced our net revenue of US$ 2.5 billion. Although there were no sufficient grounds to justify such behavior, zinc ended the year at an average price of US$ 2,922 a tonne, compared to US$ 3,421 in the first quarter. In a scenario of rising demand and without evidence of unaccounted inventories, a situation aggravated by China’s announcement of production reduction, we expect the price of the metal to reach better levels, favoring our revenues in the coming years.

In the meantime, we are strengthening our structures and our governance, building an increasingly intelligent and reliable company that can smoothly overcome external adversities, based on our constant commitment to operational excellence, transparency in all levels of governance, aiming at creating value for all our stakeholders.

Luis Ermirio de Moraes
Chairman of the Board of Directors