Public Joint Stock Mining and Metallurgical Norilsk Nickel : 2021 Annual Report of PJSC MMC Norilsk Nickel

ACCURACY OF INFORMATION CONFIRMED	APPROVED
by the Audit Commission	by the Board of Directors
of MMC Norilsk Nickel	of MMC Norilsk Nickel
Opinion of	Minutes No. GMK/12 -pr-bd of
28 April 2022	29 April 2022

2021 ANNUAL REPORT MMC NORILSK NICKEL

NAVIGATING THE TRANSITION TO

A NET ZERO WORLD

President,
Chairman of the Management Board
MMC NORILSK NICKEL	Vladimir Potanin
Senior Vice President -
Chief Financial Officer
MMC NORILSK NICKEL	Sergey Malyshev

Reporting period from 1 January 2021 to 31 December 2021

The 2021 annual report of PJSC "MMC "Norilsk Nickel" incorporates the results of MMC Norilsk Nickel and other operations of the Norilsk Nickel Group (MMC Norilsk Nickel, Nornickel, the Company, Group).

CONTENT
CHAPTER 1. ABOUT NORNICKEL	5
Company profile	5
Performance highlights	6
The Company's history	9
Highlights of the year	10
Business model	12
Geography	12
CHAPTER 2. STRATEGIC REPORT	13
Deputy Chairman's Letter	13
President's letter	13
Our Strategy	16
Key strategic projects	17
CHAPTER 3. COMMODITY MARKETS	22
Nickel (Ni)	22
Copper (Cu)	32
Palladium (Pd)	36
Platinum (Pt)	42
Rhodium (Rh)	46
CHAPTER 4. BUSINESS OVERVIEW	50
Mineral resource base	50
Operational performance	60
Sales and supply chain	71
Energy assets	76
Transport assets	78
Financial performance (MD&A)	81
CHAPTER 5. SUSTAINABLE DEVELOPMENT	94
Environmental and climate change	94
Human resources	108
Health and safety	118
Social strategy	124
CHAPTER 6. CORPORATE GOVERNANCE	132
Corporate governance structure	134
General Meeting of Shareholders	141
Board of Directors	142
Board committees	153
President and Management Board	157
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2021 Annual Report of MMC "Norilsk Nickel"

Remuneration	164
CHAPTER 7. CONTROL SYSTEM AND RISK MANAGEMENT	166
Control system	166
Risk management	175
CHAPTER 8. SHAREHOLDER INFORMATION	195
Share capital	195
Securities	196
Dividend policy	200
Investor relations	202
CHAPTER 9. IFRS FINANCIAL STATEMENTS	203
GLOSSARY	204
APPENDIX	207
Report on payments to government	207
Contacts	208

About Annual Report

We are pleased to present to you the 2021 Annual Report of MMC Norilsk Nickel focused on our Sustainable Development Strategy. This strategy is driven by management's long-term vision for global commodity markets as the world economy progresses toward a carbon-free future. Nornickel has a unique resource base underpinning our ambitious programme of production growth and operational efficiency, along with an unprecedented environmental programme. This clean growth strategy not only lays out long-term ore production and capital investment targets but also sets out concrete action plans to reduce the Company's environmental footprint in its regions of operation.

This Annual Report has been prepared by the Company's Investor Relations Department in line with best practices in information disclosure and in accordance with the requirements of Bank of Russia's Regulation No. 714-P from 27 March 2020.

Vladimir Zhukov

Vice President for Investor Relations

MMC NORILSK NICKEL

Disclaimer

The information herein relies on the data available to MMC Norilsk Nickel as at the date of this Annual Report. External or other factors may have impacted the Company's business and the content of this Report, since its preparation.

The Annual Report discloses the Company's short-,medium-, and long-term goals and plans. All plans and intentions outlined in this Annual Report are provisional and subject, among other things, to a number of economic, political and legal factors beyond Nornickel's control. As a result, actual future performance may differ from the forward-looking statements contained in this Report. MMC Norilsk Nickel hereby disclaims liability for any losses arising from using the content of this Annual Report.

Information about market share and other statements regarding the industry in which MMC Norilsk Nickel operates, as well as the Company's position relative to its competitors is based on publicly available information published by other metals and mining companies or obtained from trade and business organisations and associations. Such data and statements have not been independently

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2021 Annual Report of MMC "Norilsk Nickel"

verified, and the financial and operating performance metrics of MMC Norilsk Nickel's competitors used to assess and compare positions may have been calculated differently from the method used by MMC Norilsk Nickel.

This Annual Report is not part of a securities advertisement, an offer or invitation to sell, issue or offer the right to sell or subscribe for MMC Norilsk Nickel shares.

In line with global best practices, the Annual Report is also prepared in the XBRL format. Considering that report disclosures in this format are voluntary, the Company does not assume any obligation to comply with any legal requirements for the disclosure of its statements in this format, including obligations to comply with the requirements of UK legislation.

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2021 Annual Report of MMC "Norilsk Nickel"

CHAPTER 1. ABOUT NORNICKEL

Company profile

Nornickel is Russia's leading metals and mining company, the largest palladium and high-grade nickel producer in the world, and a major producer of platinum and copper. Nornickel also produces cobalt, rhodium, silver, gold, iridium, ruthenium, selenium, and tellurium. Nornickel's shares are listed on the Moscow Exchange and are included in its Blue Chip Index. As of the end of 2021 its American Depositary Receipts (ADRs) traded on the US OTC market, as well as on the London, Berlin, and Frankfurt exchanges (OTC sections). Nornickel had a 7.02% weight in the MSCI Russia Index.

The Group's assets

The Group's production assets are concentrated in Russia and Finland. The Group's core businesses are represented by vertically integrated metals and mining operations. They include the Norilsk Division (including Polar Division and LLC Medvezhy Ruchey, located in the Norilsk Industrial District) Kola Division including Kola MMC and Norilsk Nickel Harjavalta Oy nickel refinery in Finland, and also Trans- Baikal Division (GRK Bystrinskoye, 50.01% stake), located in Trans-Baikal Region.

In South Africa, the Group owns 50% of Nkomati, which operates a nickel mine of the same name, put on care and maintenance due to termination of operations following a decision made jointly with African Rainbow Minerals, the Group's partner in the project, in 2019.

In addition to the production facilities, the Group operates captive global sales network and owns a wide range of R&D facilities, fuel and energy assets, river fleet, river and sea port terminals, a unique Arctic cargo sea fleet, as well as a number of other auxiliary units.

Nornickel is focused on the mining and processing of minerals, as well as the production and sale of non-ferrous and precious metals, as well as exploration.

Industry rankings

Nornickel's share of the global metals market, %*

No. 1 Palladium	38
No. 1 High-grade nickel	17
No. 4 Platinum	10
No. 2 Primary nickel	6
No. 5 Rhodium	7
No. 12 Copper	2
No. 14 Cobalt	2

• As of March 05, 2022. Based on refined metal (including tolling) output for palladium, nickel, platinum, and rhodium; based on contained metal production for copper and cobalt.

Consistently strong EBITDA margin vs global peers, %*

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2021 Annual Report of MMC "Norilsk Nickel"