NN Harjavalta 7% 10% (3 p.p.)

GRK Bystrinskoye 81% 66% 15 p.p.

Other mining (29%) (87%) 58 p.p.

Other non-metallurgical 1% 0% 1 p.p.

1) Segments are defined in the consolidated financial statements

In August 2020, in order to improve management efficiency it was decided to form Norilsk, Kola and Trans-Baikal divisions. Norilsk division includes GMK Group, South Cluster and a number of companies from Other non-metallurgical segment. Kola division includes KGMK Group and NN Harjavalta, as well as a number of companies from Other non-metallurgical segment. Trans-Baikal division includes the GRK Bystrinskoye segment, as well as a number of companies from Other mining and other non-metallurgical segments.

In 1H2021, revenue of GMK Group segment decreased 24% to USD 4,632 million primarily due to decrease of revenue from matte to Kola MMC as well as lower copper sales volumes due to the temporary suspension of Oktyabrsky and Taimyrsky mines and an accident at Norilsk Concentrator, that was partly compensated by higher realized metal prices.

Revenue of South cluster segment increased 23% to USD 384 million primarily driven by higher realized prices on semi-products delivered to GMK Group, that was partly compensated by lower sales volumes due to the temporary suspension of Oktyabrsky and Taimyrsky mines and an accident at Norilsk Concentrator.

Revenue of KGMK Group segment increased 26% to USD 5,054 million primarily owing to higher realized metal prices, that was partly compensated by lower sales volumes due to the temporary suspension of Oktyabrsky and Taimyrsky mines and an accident at Norilsk Concentrator.

Revenue of NN Harjavalta increased 35% to USD 809 million driven by higher realized metal prices that was partly compensated by lower sales volumes due to the temporary suspension of Oktyabrsky and Taimyrsky mines and an accident at Norilsk Concentrator.

Revenue of GRK Bystrinskoye segment increased 66% to USD 699 million primarily driven by higher iron price as well as planned increase in production capacity at Bystrinsky GOK.

Revenue of Other mining segment decreased 21% to USD 31 million owing to lower sales volumes of semi-products following the termination of Nkomati's activities in 1H2021, that was partly compensated by higher metal prices.

Revenue of Other non-metallurgical segment increased 39% to USD 1,000 million primarily due to higher revenue from resale of metals purchased from third parties and increase in revenue from other sales.

In 1H2021, EBITDA of GMK Group segment increased 28% to USD 2,567 million primarily owing to decrease in expenses on environmental provisions that was partly compensated by lower revenue.

EBITDA of South cluster segment increased 23% to USD 217 million due to higher revenue.

EBITDA of KGMK Group segment increased 5 times to USD 2,302 million primarily owing to higher realized metal prices and higher margin on matte processing following the revision of purchase price formula.

EBITDA of NN Harjavalta increased 2% to USD 60 million. Higher revenue was negatively offset by the increase in expenses due to the higher prices of purchased semi-products.

EBITDA of GRK Bystrinskoye segment increased 2 times to USD 566 million primarily due to higher revenue.

EBITDA of Other metallurgical segment increased by USD 25 million to negative USD 9 million primarily owing to lower Nkomati's expenses.

EBITDA of Other non-metallurgical segment increased by USD 10 million and amounted to positive USD 7 million owing to increase in revenue from other sales.

EBITDA of Unallocated segment decreased by USD 29 million and amounted to a negative USD 415 million.

SALES VOLUME AND REVENUE 1H2021 1H2020 Change,%

Metal sales

Group

Nickel, thousand tons¹ 98 99 (1%)

from own Russian feed 83 93 (11%)

from 3d parties feed 2 1 2x

in semi-products2 13 5 ?x

Copper, thousand tons¹ 148 217 (32%)

from own Russian feed 110 182 (40%)

in semi-products2 38 35 9%

Palladium, koz¹ 1,347 1,274 6%

from own Russian feed 1,345 1,262 7%

in semi-products2 2 12 (83%)

Platinum, koz¹ 313 324 (3%)

from own Russian feed 312 322 (3%)

in semi-products2 1 2 (50%)

Rhodium, koz¹ 26 24 8%

from own Russian feed 26 23 13%

in semi-products2 - 1 (100%)

Cobalt, thousand tons ¹ 2 2 0%

from own Russian feed 1 1 0%

from 3d parties feed 1 1 0%

Gold, koz¹ 172 178 (3%)

from own Russian feed 81 85 (5%)

in semi-products2 91 93 (2%)

Average realized prices of refined metals produced by the Group

Metal

Nickel (USD per tonne) 17,591 12,739 38%

Copper (USD per tonne) 8,928 5,475 63%

Palladium (USD per oz) 2,530 2,102 20%

Platinum (USD per oz) 1,158 847 37%

Rhodium (USD per oz) 24,052 9,343 3x

Cobalt (USD per tonne) 33,771 32,185 5%

Gold (USD per oz) 1,825 1,624 12%

Revenue, USD million3

Nickel 1,696 1,264 34%

including semi-products 190 70 3x

Copper 1,575 1,168 35%

including semi-products 309 168 84%

Palladium 3,676 3,075 20%

including semi-products 22 55 (60%)

Platinum 366 278 32%

including semi-products 4 6 (33%)

Rhodium 644 216 3x

including semi-products 6 2 3x

Gold 305 289 6%

including semi-products 157 151 4%

Other metals 335 155 2x

including semi-products 229 81 3x

Revenue from metal sales 8,597 6,445 33%

Revenue from other sales 346 266 30%

Total revenue 8,943 6,711 33%

1) All information is reported on the 100% basis, excluding sales of refined metals purchased from third parties and semi-products purchased from Nkomati.

2) Metal volumes represent metals contained in semi-products.

3) Includes metals and semi-products purchased from third parties and Nkomati.

Nickel

Nickel sales retained its share of 20% of total metal revenue in 1H2021.

In 1H2021, nickel revenue increased 34% to USD 1,696 million. The rise was primarily driven by higher realized nickel price (+USD 482 million), which was partially offset by lower sales volume (-USD 50 million).

The average realized price of refined nickel increased 38% to USD 17,591 per tonne in 1H2021 vs USD 12,739 per tonne in 1H2020.

Sales volume of refined nickel produced from own Russian feed, decreased 11% (or -10 thousand tonnes) to 83 thousand tonnes following the suspension of mining operations at Oktyabrsky and Taimyrsky underground mines caused by the inflow of groundwater as well as the suspension at the Norilsk Concentrator. Sales volume of refined nickel produced from third-party feed increased 2 times to 2 thousand tonnes due to increase in the processing of third party feed at Harjavalta.

In 1H2021, sales of nickel in semi-products increased 3 times to USD 190 million primarily due to an increase in the sales volume of semi-products following the shut down of a smelter at Kola MMC.

Copper

In 1H2021, copper sales remained unchanged at 18% of the Group's total metal sales. Copper revenue increased 35% (or +USD 407 million) to USD 1,575 million driven by the higher realized copper price (+USD 740 million), which was partly offset by lower sales volume (-USD 622 million).

The average realized price of refined copper increased 63% from USD 5,475 per tonne in 1H2020 to USD 8,928 per tonne in 1H2021.

Physical volume of refined copper sales from the Company's own Russian feed decreased 40% (or -72 thousand tonnes) to 110 thousand tonnes following the suspension of mining operations at Oktyabrsky and Taimyrsky underground mines caused by the inflow of groundwater as well as the suspension at the Norilsk Concentrator. Revenue from copper in semi-products in 1H2021 increased 84% to USD 309 million driven by higher copper price.

In 1H2021, revenue from the resale of copper purchased from third parties amounted to USD 289 million.

Palladium

In 1H2021, palladium accounted for 43% of total metal revenue, down by 5 p.p. y-o-y. Palladium revenue increased 20% (or +USD 601 million) to USD 3,676 million due to higher realized price (+USD 530 million) and higher sales volume (+USD 185 million).

The average realized price of refined palladium increased 20% from USD 2,102 per troy ounce in 1H2020 to USD 2,530 per troy ounce in 1H2021.

In 1H2021, physical volume of refined palladium sales from the Company's own Russian feed increased 7% (or 83 thousand troy ounces) to 1,345 thousand troy ounces. Increase in production volume driven by the ramp-up of a new precious metals production line using chlorine leaching at Kola MMC was partly compensated by the negative impact of the accidents at the Oktyabrsky and Taimyrsky underground mines and the Norilsk Concentrator.

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