Public Joint Stock Mining and Metallurgical Norilsk Nickel : 6.4 MB

1H 2021 Financial Results

Moscow August 5th, 2021

Disclaimer

The information contained herein has been prepared using information available to PJSC MMC Norilsk Nickel ("Norilsk Nickel" or "Nornickel" or "NN") at the time of preparation of the presentation. External or other factors may have impacted on the business of Norilsk Nickel and the content of this presentation, since its preparation. In addition all relevant information about Norilsk Nickel may not be included in this presentation. No representation or warranty, expressed or implied, is made as to the accuracy, completeness or reliability of the information.

Any forward looking information herein has been prepared on the basis of a number of assumptions which may prove to be incorrect. Forward looking statements, by the nature, involve risk and uncertainty and Norilsk Nickel cautions that actual results may differ materially from those expressed or implied in such statements. Reference should be made to the most recent Annual Report for a description of major risk factors. There may be other factors, both known and unknown to Norilsk Nickel, which may have an impact on its performance. This presentation should not be relied upon as a recommendation or forecast by Norilsk Nickel. Norilsk Nickel does not undertake an obligation to release any revision to the statements contained in this presentation.

The information contained in this presentation shall not be deemed to be any form of commitment on the part of Norilsk Nickel in relation to any matters contained, or referred to, in this presentation. Norilsk Nickel expressly disclaims any liability whatsoever for any loss howsoever arising from or in reliance upon the contents of this presentation.

Certain market share information and other statements in this presentation regarding the industry in which Norilsk Nickel operates and the position of Norilsk Nickel relative to its competitors are based upon information made publicly available by other metals and mining companies or obtained from trade and business organizations and associations. Such information and statements have not been verified by any independent sources, and measures of the financial or operating performance of Norilsk Nickel's competitors used in evaluating comparative positions may have been calculated in a different manner to the corresponding measures employed by Norilsk Nickel.

The strategy of Norilsk Nickel and its implementation may be modified, changed or supplemented by decisions of the shareholders and directors of Norilsk Nickel and its subsidiaries. There can be no assurance that any transaction described in this document may occur in the form described in this document or at all.

This presentation does not constitute or form part of any advertisement of securities, any offer or invitation to sell or issue or any solicitation of any offer to purchase or subscribe for, any shares in Norilsk Nickel, nor shall it or any part of it nor the fact of its presentation or distribution form the basis of, or be relied on in connection with, any contract or investment decision.

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1H Financial Results Presentation

1H 2021 Financial Performance Highlights

Revenue

$8.9 bn

up 33% vs 1H 2020

EBITDA

$5.7 bn

up 3x vs 1H 2020

EBITDA Margin

%64

up 37 p.p. vs 1H 2020

• Realized prices (Ni, Cu, Pd, Rh)
• Production volume (Pd, Rh)
• Sale of Ni from stock
• Temporary disruption of operations
• Revenue increase
• Reimbursement of environmental damages (provision booked in 1H20)
• Depreciation of RUB against USD
• Increase in taxation (MET)
• Social expenses
• Globally leading profitability

FCF

$1.4 bn

down 48% vs 1H 2020

CAPEX

$1.0 bn

up 80% vs 1H 2020

ND/EBITDA

x0.7

up 0.1x vs Dec'31 2020

•	Operating cash flow
•	Reimbursement of environmental
	damages
•	CAPEX
• Environmental (Sulphur programme in
	Norilsk) and strategic commercial projects
• Equipment purchases and capital repairs to
	improve industrial safety
• Leverage maintained at below
	mid-cycle level
• Investment grade credit ratings reiterated
	by all major international agencies

NWC

$1.8 bn

up 2x vs Dec'31 2020

• Income tax receivable
• Depreciation of advances from customers
• Increase in metal inventory due to increase in taxation (MET)
• Seasonality and one-offs

Cash Returns

$4.3 bn

• Final 2020 dividend of USD 13,89 per share

(1) paid in June 2021 for a total of UDS 2.2

bn billion

• USD 2.1 billion share buy-back completed

in June 2021

Source: Company data. Note: 1. At the exchange rate as of dividend payment date

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Sustainable Development Update

1H 2021 Financial Results | Sustainable Development Update

Health and Safety Update

LTIFR: Increased in 1H'21 as Injuries Reporting

Improved

LTIFR per 200k Hours
				-57%
0.75
	0.39	0.36			0.28		0.32
		0.27
			0.20
1H 15	1H 16	1H 17	1H 18	1H 19	1H 20		1H 21

• In 1H 2021, LTIFR increased 60% y-o-y owning to improved transparency and the quality of reporting on injuries
• Special emphasis has been put on comprehensive reporting to include not just casualties and heavy injuries, but also medium, light and micro injuries
• In addition to providing incentives to the management to improve reporting, disciplinary measures for concealing injuries have been tightened

Source: Company data

Number of Fatal Accidents Unchanged Owing to the Incident at Norilsk Concentrator in 1H'21

Employees												Lost time injury		Fatal
									-54%
	5
43			6
				0
																		5
											4
							1
			23		21								5		17
					15		15		11
1H 15	1H 16	1H 17	1H 18	1H 19	1H 20		1H 21

• Regrettably, there were 5 fatal accidents in 1H 2021, including the group accident at Norilsk Concentrator with 3 casualties
• All accidents have been thoroughly investigated and reported to the Board, action plans to tackle causes of each incident prepared
• Zero tolerance towards fatal incidents and violation of cardinal safety rules reiterated
• A comprehensive review of industrial safety requirements and standards is scheduled for 2022

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