imbalance of supply ratio of high and low grade ores. Premiums for the 65% Fe content iron ore adjusted by 1% Fe differential increased by 108% quarter-on-quarter in 4Q16. In countries other than China, crude steel production edged up to 820 Mt in 2016, an increase of 0.4% year-on-year and a reversal of the weak start observed at the beginning of 2016. For 2017, iron ore demand is expected to remain firm supported by credit availability in China and a steady growth in fixed asset investments. Volume sold by destination Iron ore and pellets Americas 10,699 9,275 8,549 36,367 10.7 41,187 12.3 Others 2,020 1,891 1,203 7,477 2.2 5,522 1.6 China 56,181 49,061 52,898 196,348 57.6 179,470 53.6 Others 4,790 4,780 4,894 17,708 5.2 20,299 6.1 Germany 5,839 4,753 5,471 20,543 6.0 21,991 6.6 Others 4,929 6,119 8,061 22,269 6.5 25,580 7.6 Rest of the World 1,570 1,260 453 3,996 1.2 1,360 0.4 Selected financial indicators - Ferrous minerals Net Revenues 7,047 4,959 3,830 20,351 16,562 Expenses¹ (141) (95) 120 (572) (380) R&D expenses (45) (29) (27) (105) (128) Adjusted EBITDA 4,109 2,493 1,409 10,476 5,899 Adjusted EBIT 3,567 2,094 977 8,747 3,975 ¹ Net of d epreciation and am ortization Selected financial indicators - Iron ore fines Adjusted EBITDA (US$ million) 3,391 1,989 1,095 8,445 4,105 Adjusted EBITDA (US$/t) 42.24 26.79 13.82 29.13 14.85 Selected financial indicators - Pellets (excluding Samarco) Adjusted EBITDA (US$ million) 625 462 336 1,820 1,539 Adjusted EBITDA (US$/t) 47.38 38.50 31.00 38.15 33.24 Selected financial indicators - Iron ore fines and Pellets Adjusted EBITDA (US$ million) 4,016 2,451 1,431 10,265 5,644 Adjusted EBITDA (US$/t) 42.96 28.42 15.89 30.40 17.49 63 Volume Sold (Mt)93.47786.23290.050337.649322.677 4Q163Q164Q1520162015 Volume Sold (Mt)13.19012.00110.83747.70946.284 4Q163Q164Q1520162015 Volume Sold (Mt)80.28774.23179.213289.940276.393 4Q163Q164Q1520162015 Adjusted EBIT margin (%)50.642.225.543.024.0 Depreciation and amortization(489)(399)(388)(1,616)(1,669) Dividends received53-44113255 Pre-operating and stoppage expenses¹(52)(49)(61)(186)(169) Costs¹(2,753)(2,293)(2,497)(9,125)(10,241) US$ million4Q163Q164Q1520162015 Total95,69686,58391,677341,027100.0334,946100.0 Middle East2,7952,2742,0958,9992.69,7452.9 France1,8511,5491,4746,6091.95,8141.7 Europe12,61912,42115,00649,42114.553,38515.9 Japan7,0427,5127,78228,1888.329,4998.8 Asia68,01361,35365,574242,24471.0229,26868.4 Brazil8,6797,3847,34628,8908.535,66510.6 000 metric tons4Q163Q164Q152016%2015%