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Strategy and
Business Model

Employees from Atacocha
Our vision of the future
GRI 103-2, 103-3
The backbone of Nexa Resources’ strategy consists of growing competitively, building the mining of the future and generating value for all its stakeholders. Therefore, we are consolidating a safe and sustainable company that, in constant dialogue and relationship with its communities, seeks to create a relevant legacy for society.
Employees from Juiz de Fora
This strategy is based on two strategic axes (Growth and Operational Excellence) and eight enablers (People and Organization, Sustainability, Project Management, Commercial, Risk Management, Technology and Automation, Supplies and Logistics and Capital Structure) that have clear strategic objectives, linked to the corporate strategy and aligned with the relevant trends that impact the mining industry worldwide. The two strategic axes bring important value drivers, which indicate the path we seek to deliver our strategy. In the Growth axis, our platform for growth is based on 5 avenues: extension of the useful life of our mines, development of greenfield projects, development of brownfield projects, development of businesses and exploration of new areas. Regarding Operational Excellence, our focus is on operational discipline in cost management, capital expenditures and working capital, as well as on increasing the productivity of our assets and of our corporate structure.
Axes
Growth
Operational Excellence
Enablers
People and Organization
Sustainability
Project Management
Risk Management
Commercial
Technology, Automation
and Innovation
Logistics and Procurement
Capital Structure & IR
Put to the test this year of economic and health uncertainties generated by the Covid-19 pandemic, the company’s strategy proved to be correct and capable of supporting the crisis. Considering capital preservation, the Operational Excellence axis and the operational continuity supported by the enablers were prioritized during this period, while the Growth axis faced hard choices in the investment plans and capital allocation. The business plan needed to be adjusted to be consistent with the new scenario.

As opposed to previous years, in which the process of planning and reviewing the business plan took place between May and August, with the discussion of strategic aspects within each area, in 2020, several possible scenarios for the post-pandemic were simulated, by means of an ongoing dialogue with the Board of Directors.

The next review of the strategic mandate is scheduled for 2021, when relevant aspects for the business will be discussed, seeking to test the strategy resilience and, eventually, adjust routes and tactical plans. Our mandate is reviewed every three years, through a process called Strategic Dialogue, coordinated by the Strategic Planning area. By means of individual and structured interviews with the company’s directors and board members, we identified positive aspects, opportunities for improvement and potential adjustments. This process includes an analysis of the macro trends that affect the company and the industry, of new technologies, and of the socioeconomic and political environment of the countries where we operate. We also reassessed our skills, our ability to implement the strategy and the evolution we have achieved in these areas since the last assessment.

Our Nexa Way of implementing this strategy – in a highly collaborative environment and through core competencies – defines and guides us to continue to grow competitively. Furthermore, this allows us to take the world of mining to the world of people, with quality products, produced in such a way as to cause the least environmental impact and leaving a relevant legacy for society.

Modelo de Negócios
Commitments
GRI 102-12
As a way of expressing our commitment to sustainable development, we voluntarily joined several initiatives undertaken with national and international entities:

Global Compact – Since 2017, we have been a signatory of this United Nations Initiative, which aims to mobilize the business community around the world to adopt ten principles that represent fundamental values of human rights, labor relations, the environment and the fight against corruption.

Colaboradora  de Três Marias
Employee from Três Marias
Sustainable Development Goals – Commitment signed in 2017 with the Sustainable Development Goals (SDGs), a global agenda composed of 17 objectives and 169 goals to be achieved by 2030 (United Nations Summit on Sustainable Development – 2015). The agenda includes measures for eradicating poverty, food security, agriculture, health, education, gender equality, reduction in equalities, energy, water and sanitation, sustainable production and consumption patterns, climate change, sustainable cities, protection and sustainable use of oceans and terrestrial ecosystems, including economic growth, infrastructure and industrialization, among others. This report indicates the relationship between the SDGs with our material topics and long-term goals. New correlations and deepening of goals are underway and will be reported in the next period.
Women In Mining (WIM Brazil and WIM Peru) – In 2020, we signed a letter of commitment to this initiative to expand and strengthen the participation of women in the mineral industry, fostering a dynamic business environment, capable of attracting and maintaining them, capitalize on their strengths and recognize their values. Furthermore, this is an opportunity to take a closer look at women in communities impacted by mining and to value female entrepreneurship in the supply chain. We also have an internal goal of reaching a participation of 20% of women in our workforce by 2025.

Carbon Disclosure Project (CDP) GRI 302-1 Since 2019, we have participated in the Carbon Disclosure Project (CDP), responding about water security. Reflecting the good water management that we carry out in all of our operations, we were included in the “B-” category. We highlight the participation of Nexa in the climate category for the first time, in which it obtained the “C” rating. This was the first time that the company conducted, still as a pilot project, the emissions inventory following the guidelines of the GHG Protocol. CDP is an international non-profit organization that analyzes and recognizes business initiatives to minimize and manage the environmental impacts of its activities. The initiative operates a global disclosure system for investors, companies, cities, states and regions to manage their environmental impacts.