Public Joint Stock Mining and Metallurgical Norilsk Nickel : 1H2022 Financial Results

1H 2022 Financial Results

Investor Presentation August, 2022

Norilsk Nickel 1H 2022 Financial Results Presentation

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

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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Norilsk Nickel 1H 2022 Financial Results Presentation

1H 2022 Financial Performance Highlights

Revenue

$9.0 bn

same level vs 1H 2021

EBITDA

$4.8 bn

down 16% vs 1H 2021

EBITDA margin

53%

down 11 p.p. vs 1H 2021

NWC

$3.8 bn

up 3x vs Dec'31 2021

Return to full production capacity after temporary suspension in 2021

Higher realized prices (Ni, Cu, Co) Logistics disruptions

Sale of Ni from stock in 2021

Domestic inflation

Salary indexation ahead of inflation Increase in taxation (MET)

Оne-off motivation bonuses to personnel Environmental provision increase

• Leading positon among global diversified mining majors
  Appreciation of RUB against USD Outstanding balances due/from customers Accumulation of metal stocks
  Income tax receivable

FCF

$1.1 bn

down 25% vs 1H 2021

CAPEX

$1.8 bn

up 83% vs 1H 2021

ND/EBITDA

1.1х

up 2x vs Dec'31 2021

Cash Returns1

$40.52

full DPS for the year 2021

Repayment of environmental damages in 1H 2021 Lower income tax payments

Higher net working capital Lower EBITDA

Sulphur programme and strategic commercial projects

Investment in key projects (Sulphur programme and strategic commercial projects)

Increase in capital repairs and modernization of core assets

• Conservative debt management
• Leverage ratio at the level of global diversified mining majors
• 2021 is the last financial year when the Shareholders Agreement is in place

Note: 1. Paid in 2022 based on the results of 2021 FY including interim dividends, 2. Rub 1,644.57 at the exchange rate as of dividend payment date.

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Sustainable Development Update

Norilsk Nickel 1H 2022 Financial Results Presentation | Sustainable Development Update

Health and Safety Update

LTIFR and FIFR Dynamics

• In 1H 2022 the number of lost time injuries

LTIFR

FIFR

increased to 37 from 17 in 1H 2021 driven by the

[1*10-6]

0.65

shift of the management focus towards improving

the reporting and injuries data collection

0.27

0.28

0.31

transparency

0.20

• Regretfully, we tragically suffered one fatal

0.02

0.02

0.07

0.09

0.09

accident during the reported period (compare to 5

accidents in 1H 2021)

6М 2018

6М 2019

6М 2020

6М 2021

6М 2022

• In 2022 the Company continue to implement:

a new approach setting 2022 KPIs is implemented

Number of Accidents

a pilot project on the transformation of safety

[Employees]

culture is launched (Norilsk Concentrator)

Lost time injury

Fatal



1

a program to improve the employees' skills in

operating hazardous production facilities is

5

37

implemented

1

4

5

• The management reiterates its major strategic

17

15

15

11

focus of transforming Norilsk Nickel into a zero-

fatality mining company

6М 2018

6М 2019

6М 2020

6М 2021

6М 2022

Source: Company data

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