NORNICKEL 2019

EXPANDING THE HORIZONS OF SUSTAINABLE GROWTH

OUR COMPANY IN 2019

PB 1 NORNICKEL 2019 CONTENT

2 METAL PRODUCTS AND USES

4 OVERVIEW

6 PERFORMANCE HIGHLIGHTS

8 BUSINESS MODEL

14 PRODUCTION FLOW

16 KEY INVESTMENT PROJECTS

28 POLAR DIVISION AND MEDVEZHY RUCHEY

30 KOLA MMC

32 GRK BYSTRINSKOYE

34 NORILSK NICKEL HARJAVALTA

36 CLIMATE CHANGE

40 MINERAL BASE

42 OPERATING PERFORMANCE

44 SHAREHOLDER INFORMATION

1 NORNICKEL 2019 METAL PRODUCTS AND USES

Ni Cu Pd Pt

Copper Palladium Platinum High-grade nickel

Electrical Batteries wires Chemical Catalysts industry

Chemical industry

Pipes

Medicine Jewellery

Medicine Architecture and design

Nickel electroplating Investment Electronics

Antiseptic Alloys

Glass fibre and Oil refining optical glass Stainless Copper rod steel

2 3 NORNICKEL 2019 OVERVIEW COMPETITIVE ADVANTAGES

Mineral resources5

Nornickel operates the unique Talnakh ore THE GROUP’S ASSETS deposit on the Taimyr Peninsula ranking the Norilsk Nickel Group (hereinafter world’s best polymetallic deposit in terms of C the size of its minerals resources and contained “the Company” or “Nornickel”) is metal grades. Successful development of 10 the Talnakh deposit is the key driver of the Russia’s largest metals and mining mines Company’s long-term sustainable growth. company and the world’s largest RUSSIA FINLAND producer of palladium and high- Polar Division Norilsk Nickel Harjavalta, The Group operates captive nickel refinery global sales network, fuel grade nickel and a major producer Medvezhy Ruchey (100% stake) and energy assets, river and >80years PROVEN MEASURED 1 sea port terminals, river AND PROBABLE AND INDICATED (South Cluster) of resources at the current (100% stake) fleet and a unique Arctic RESERVES RESOURCES of platinum and copper. The Group cargo sea fleet, in-house production rate capital construction and also produces cobalt, rhodium, Kola MMC П repairs subsidiaries. In (100% stake) addition, Nornickel owns silver, gold, iridium, ruthenium, А one of the Russia’s leading 757 2,193 Nornickel’s core businesses Dividend yield mln t mln t GRK Bystrinskoye are on the exploration, mining and metallurgical of global mining selenium, tellurium, and sulphur. (50.01% stake) mining and processing of R&D centres. majors in 20194 minerals, as well as the (%) production and sale of base Ni Ni Ownership structure as of 31 December 2019, 6.7 mln t 15.2 mln t % of shares held and precious metals.

Nornickel 14.9 Peer  7. Cu Cu 34.6 Peer  5.9 11.9 mln t 23.2 mln t Olderferey Holdings Ltd1 Peer  5.8 37.6 Peer  4.5 Other PGMs PGMs GLOBAL INDUSTRY RANKINGS 120 moz 260 moz

Nornickel's share of the global markets2

4/ Dividend yield was calculated 1/ The Company’s reserves and resources are reported 27.8 on the basis of dividends in USD according to JORC standards as of 31 December # # # # # # terms as of the date of the Board 2019 and include wholly-owned international 1 EN+ Group IPJSC 1 1 4 4 8 11 recommendation for AGM assets and exclude ore deposits in the Zabaykalsky approval and average annual price Region. PGMs include six platinum group metals: 1/ Indirect ownership via controlled entities. Pd Ni Pt Rh Co Cu of Nornickel ADRs (as reported platinum, palladium, rhodium, ruthenium, osmium, by Bloomberg). and iridium. palladium high-grade nickel platinum rhodium cobalt copper The peers are Anglo American, (41%) (24%) (11%) (9%) (3%) (2%) BHP Billiton, Glencore and Rio 0.28% 7.2% Tinto. Nornickel’s weight in Nornickel’s weight in Global mining industry EBITDA margin ranking in 20193 MSCI Emerging Markets MSCI Russia index (%) 2/ Based on refined metal index as of the end of 2019 as of the end of 2019 production volumes of palladium, nickel, platinum, and rhodium and contained metal production of copper and cobalt. Nornickel 58 3/ The peer group includes Anglo The Company's shares are listed on the Moscow Peer  54 American, BHP Billiton, Glencore, Exchange and included into its Blue Chip Index. Peer  46 Rio Tinto, and Vale. Peer  3 Peer  28 Nornickel American Depositary Receipts (ADRs) trade on the OTC market in the USA, as well as on the OTC markets of the London, Berlin, and Frankfurt stock exchanges.

1/ In 2H 2017, Nornickel established Medvezhy Ruchey, a 100% subsidiary that operates part of the assets of Polar Division. Medvezhy Ruchey open pit and undeground mines comprised investment project South Cluster. R 4 5 NORNICKEL 2019 PERFORMANCE HIGHLIGHTS

FINANCIAL OPERATING SUSTAINABILITY HIGHLIGHTS HIGHLIGHTS HIGHLIGHTS

Key highlights Nickel Injury rates Work-related (USD bn) (kt) per million hours worked fatalities

0.08 1 6.0 ‘19 ‘19 ‘19 0.32 9 13.6 ’20F 220–225 225 0.05 2 3.1 ‘19 228 3 ‘18 ‘18 ‘18 0.23 6 11.7 ’18 219 217 2 ‘17 217 210 7 0.08 1 2.1 ‘17 ‘17 ‘17 ’16 236 197 39 0.44 9 9.1 LTIFR FIFR Employees Contractors Revenue Net income From own Russian feed From 3d parties feed

EBITDA SO2 emissions GHG emissions & EBITDA margin Copper (mln t) (mln t) (kt) (USD bn)

‘19 7.9 58% ’20F 420–440 55–65 ‘18 6.2 ‘19 499 455 43 53% ‘19 9.9 9.8 0.1 ‘17 4.0 ’18 474 454 19 ‘19 1.9 44% ‘17 401 398 3 ‘18 1.9 ‘18 10.0 9.9 0.1 ’16 360 344 16 ‘17 1.8 ‘17 10.3 10.2 0.1

EBITDA EBITDA margin From own Russian feed From 3d parties feed Scope 1 Scope 2 Bystrinsky Project¹

Capital investments 1/ Note: Norilsk Nickel Group owns 50.01% of Bystrinsky Project (Chita Water use Electricity consumption 3 (USD bn) Copper Project). Production results are shown metal in concentrate (mln m ) (TJ) for sale on 100% basis and fully consolidated in total operational results. The concentrator at the Bystrinsky project was launched in 2018 as part 1,172 14,837 ‘19 1.3 of the hot commissioning stage and was fully commissioned in 2019. ‘19 ‘19 0.8 0.4 0.1 1,344 87% 18,501 45% ‘18 1.6 0.7 0.7 0.2 1,210 14,480 ‘17 ‘18 ‘18 2.0 0.7 0.8 0.4 1,412 86% 18,762 44% 1,138 12,175 ‘17 ‘17 Palladium 1,342 85% 20,180 38% Stay-in-business Growth Bystrinsky (koz) CAPEX CAPEX project Total water used Water recycled and reused Electricity consumption Electricity consumption Share of water recycled and reused from natural gas from renewables Share of electricity from renewables Debt ’20F 2,648–2,777 230 (USD bn) ‘19 2,922 2,919 3 ’18 2,729 2,729 ‘17 2,780 2,728 52 ‘19 7.1 0.9x ’16 2,618 2,526 92 ‘18 7.1 1.1x ESG PERFORMANCE ‘17 8.2 2.1x From own Russian feed From 3d parties feed Since 2016 «B» Net debt Net debt/EBITDA SIGNATORY TO THE UN GLOBAL «B» RATING REITERATED COMPACT SINCE 2016 IN DECEMBER 2019 Platinum Dividends (koz) (USD) 37 ↑27 CONSTITUENT OF THE FTSE4GOOD 3 / 5 ‘19 ’20F 611–675 230 26.3 14.9% EMERGING INDEX SINCE 2016 SCORE OF 37 ASSIGNED IN 2019 ‘18 ‘19 702 700 2 21.3 11.8% SCORE OF 3 (OUT OF 5) (RAISED FROM – 27 IN 2018) 653 ‘17 18.8 7.2% ’18 653 ASSIGNED IN JUNE 2019 ‘17 670 650 20 ’16 644 610 34 Dividends per share paid Dividend yield¹ From own Russian feed From 3d parties feed in the reported period / 100 4 2 2 67 GOVERNANCE ENVIRONMENTAL SOCIAL RATED AVERAGE PERFORMER, SCORE SCORE SCORE SCORE 1/  Dividend yield was calculated on the basis of dividends in USD OF 67 (OUT OF 100) ASSIGNED IN 2019 ASSIGNED IN OCTOBER 2019 terms as of the date of the Board recommendation for AGM approval (1 is low risk, and 10 is high risk) and average annual price of Nornickel ADRs (as reported by Bloomberg). 6 7 GLOBAL ASSET BUSINESS MAP MODEL NORILSK NICKEL HARJAVALTA Finland

KOLA MMC Kola Peninsula

GRK BYSTRINSKOYE Greenfield project Zabaykalsky Region Nornickel’s new copper, gold and iron concentrate project launched in 2019 POLAR DIVISION AND MEDVEZHY RUCHEY (SOUTH CLUSTER) Taimyr Peninsula

The Group owns

of50% Nkomati, which operates a nickel mine of the same name NKOMATI Nornickel holds a licence to develop South Africa the Honeymoon Well project, which includes deposits of disseminated In 2019, the Group and its operating nickel sulphide ores. partner, African Rainbow Minerals, reached an agreement to scale down HONEYMOON WELL The asset is slated for sale. production at Nkomati Nickel Mine Australia during 2020. As part of this process, the partners will elaborate in due course a plan contemplating the cessation of the mining operations and the placing of the mine in care and maintenance.

8 9 NORNICKEL 2019 NORNICKEL 2019 NORNICKEL 2019 WHERE WE WHAT WE

OPERATE Ore output: DO Ore output: 26 Mtpa 10 Mtpa VALUE Reserve life: REVENUE FROM METAL SALES, 30 years CREATION Proven and probable Proven and probable Proven and probable ( ) reserves reserves reserves USD MLN FOR STAKEHOLDERS 673 85 316 mln t mln t mln t1

Other SHAREHOLDER Polar Division Kola MMC Norilsk Nickel GRK Bystrinskoye NiNickel CuCopper PdPalladium PtPlatinum metals Total RETURNS Kola Peninsula Zabaykalsky Region and Medvezhy Ruchey Harjavalta 3,843 Dividends paid in 2019 Dividend yield in 2019 (South Cluster) Finland 2,452 Taimyr Peninsula 4.1 14.9% 1,109 USD bn 523 630 8,557

1,269 588 246 78 90 2,271 EBITDA SOCIAL 880 1,145 7,923 PERFORMANCE 83 106 12 64 USD mln

LTIFR in 2019 Average monthly pay 76 106 182 Sales NET PROFIT 0.32 USD2,000 In 2019, Nornickel maintained its long-standing Sales network OTHER MINING 133 FOR THE YEAR reputation as a reliable supplier of high-quality • Metal Trade • Norilsk Nickel • Norilsk Nickel • Norilsk Nickel ASSETS 65 10 31 8 19 products, shipping products to 37 countries and products registered for delivery against Overseas A.G. Asia Ltd. Metals Trading USA 5,966 Tax payments Social investments Switzerland, China, USA, OTHER USD mln contracts at the London Metal Exchange (Shanghai) NON-METALLURGICAL and the Shanghai Futures Exchange. Zug Hong Kong Co., Ltd. Pittsburgh ASSETS 65 10 475 6 563 China, 7 3 278 Shanghai USD thousand USD mln

Honeymoon Well Nkomati 3,388 2,877 5,043 628 915 12,851 Australia South Africa Ports in Americas Nornickel Nornickel owns 50% Polar Rotterdam Port holds a licence of Nkomati, which ENVIRONMENTAL Division Hamburg Port to develop operates a nickel mine PERFORMANCE the project of the same name GROUP REVENUE FROM METAL SALES TO END USERS

Dudinka Port Transport assets Proven and probable reserves Nornickel owns a modern transport infrastructure Europe Asia North and South America Russia and the CIS GHG emissions Percentage of reused Kola MMC capable of handling most challenging freight (Scope 1 + 2) and recycled water Murmansk Port 5% International assets 7% 7% 15% logistics tasks and ensuring continuity and 8 1% Arkhangelsk Port 1% 37% Global sustainability of operations. It includes sea, river, rail mln t 41% 19% 1% Nickel and aircraft fleets as well as logistics hubs 21% 13% Copper 9.9 87% 9% Palladium mln t Norilsk Nickel 3% Palladium Harjavalta 2,289 34% Platinum Fund L.P. 3,243USD mln USD mln Other (25%) (18%) Share Percentage metals Financial platform to of renewables of non-hazardous waste Domestic market GRK Bystrinskoye Energy assets 6,680USD mln 639 USD mln engage major holders (52%) 70% (5%) Nornickel owns an integrated network of energy assets, comprising four gas fields, three of existing palladium thermal power plants, and two hydropower plants as well as gas pipelines and power lines, all 46% 7% stockpiles and boost 45% 96% 28% located within the Norilsk Industrial District industrial demand for 35% 1/ According to the Russian classification (А + В + С1 + С2). China palladium

10 11 11 12 12 13 NORNICKEL 2019 PRODUCTION FOR THE REPORTING FLOW 2019 YEAR

MINING CONCENTRATION SMELTING REFINING PRODUCTS

Mines Blister Cuprous and Low-grade ores POLAR DIVISION • Taimyrsky copper disseminated ores NORILSK Copper smelting at AND MEDVEZHY COPPER PLANT • Oktyabrsky Cu-concentrate RUCHEY CONCENTRATOR COPPER PLANT • Komsomolsky • Сu: cathodes • Skalisty Ni-concentrate • Sulphur: technical • Zapolyarny • Acid: sulphuric • Mayak (for Company’s needs) -concentrate Sludge from Ni Cu Precious metal copper concentrates ~1.32% Rich and Nickel smelting at tankhouse 18.4 Cu cuprous ores TALNAKH Ni-Po-concentrate COPPER PLANT’S • Se: technical mln t NADEZHDA ~2.24% CONCENTRATOR Converter SMELTING SHOP • Те : billots of ore METALLURGICAL PGMs SPC KUR1 matte ~6.9 g/t PLANT

Mines Briquettes • Ni: cathodes, carbonyl, intermediate products KOLA MMC • Severny of Cu-Ni-concentrate • Cu: cathodes, • Kaula-Kotselvaara Disseminated ores Intermediate products Converter intermediate products SMELTING matte SMELTING SHOP Ni CONCENTRATOR • Co: electrolytic, saleable ~0.55% SHOP REFINING SHOP concentrate 7.9 (TANKHOUSES 1 AND 2) mln t Cu • Precious metal of ore ~0.24% Concentrates PGMs • Acid: sulphuric ~0.1 g/t

NORILSK NICKEL Ni-matte from Kola MMC HARJAVALTA • Ni: cathodes, briquettes, salts, solutions Crushed converter matte • Co: sulphate, solutions from Kola MMC NICKEL REFINERY • Сu: saleable cake

From 3d parties feed

Open pits GRK BYSTRINKOYE • Verkhneildikansky

• Bystrinsky-2 Gold-iron-copper • Cu, Fe: saleable • Medny Chainik (planned) ore concentrates BYSTRINSKY GOK • Yuzhno-Rodstvenny (planned) • Au: concentrate to be Cu processed at Nornickel’s 10.5 ~0.6% facilities mln t Au of ore ~0.9 g/t Fe ~16.1%

1/ SPC KUR – Stored pyrrhotite concentrate from Kayerkansky Open Pit Coal Mine.

14 15 NORNICKEL 2019 KEY INVESTMENT PROJECTS Environmental projects DESULFURIZATION PROGRAMME AT POLAR DIVISION DESULFURIZATION PROGRAMME AT KOLA MMC

Location Location CLOSURE OF THE SMELTING SHOP IN NICKEL SETTLEMENT Norilsk Industrial District, Nickel settlement, Krasnoyarsk Region This is a comprehensive environmental project at Kola MMC that aims to Murmansk Region completely eliminate emissions in Nickel settlement, while reducing emissions WILL BE Project overview CLOSED from Kola MMC by 50% by the end of 2020 (from a 2015 baseline). Project overview Nickel, Zapolyarny, Murmansk Region The project will be rolled out The project envisages the construction in two phases at Nornickel’s two core of a 200 kt dry concentrate loading downstream facilities in the Norilsk point, the upgrade of the flotation circuit Industrial District as follows at Zapolyarny Concentrator to enable Nadezhda Metallurgical Plant: production of two types of copper- • phase 1: The construction of gases’ nickel concentrates, and the complete capture and the acid neutralisation shutdown of smelting operations facilities (including gypsum storage in Nickel settlement. The new facility and related infrastructure) – to be at the concentrator will separate high- completed by 2023 grade concentrate and low-grade • phase 2: The expansion concentrate, ready to be shipped of neutralisation infrastructure (for to third-party consumers. In 2019, treatment of the sulphuric acid the concentrator processed 7.9 mln t produced from copper stream) – of ore. to be completed by 2025 After all smelting operations will be shut Copper Plant: down, the employees will be offered phase 1: Preparatory work • The Desulfurization programme at Kola MMC envisages job opportunities at other Nornickel and retrofitting of the gas cleaning This is a large-scale environmental project launched in 2019 the closure of obsolete production shop in Nickel town (near operating sites. unit – to be completed by 2023 designed to capture sulphur dioxide emissions at Nadezhda the Norwegian border) and modernization of downstream phase 2: Recovery of sulphur Metallurgical Plant and Copper Plant (both of Nornickel’s Polar In 2017–2020, the project’s CAPEX • facilities in Monchegorsk. Upon the programme’s competition dioxide from rich off-gases Division), aiming to dramatically reduce these air emissions. estimated at RUB 5.8 bn (USD 90.9 mln). at Desulfurization facilities, sulphur dioxide emissions in the Russia-Norway border area reduction of the plant’s emissions Desulfurization programme at the Polar Division is a staged should be completely eliminated and adverse environment to the maximum level possible, project, with the following milestones set for sulphur dioxide impact in Monchegorsk significantly reduced. In particular, and the discontinuation reduction in the Norilsk Industrial District: 45% by 2023 sulphur dioxide emissions from Kola MMC are scheduled of converters with sulphur-poor and 90% by 2025 (from a 2015 baseline). In 2019–2025, to decrease by 50% in 2020, and by 85% in 2021 (from a 2015 gases – to be completed by 2025 the project’s CAPEX has been budgeted for a total of USD 3.5 bn. baseline). Project timeline '19 '20 Project timeline '19 '20 '21

• CAPEX – of RUB 1.5 bn (USD 24 mln) • Detailed design documentation • CAPEX – • CAPEX – • Complete shutdown • Completion of the bulk of on-site preparatory for the project at Nadezhda Metallurgical Plant of RUB 2.3 bn (USD 35.6 mln) of RUB 1.6 bn (USD 24.9 mln) of smelting operations work will be prepared, application for the approval • Approval • Partial closure of electric in Nickel settlement • Development of design documentation from the government’s technical regulator from the government’s furnaces at the smelting shop • Launch construction for Phase 1 at Nadezhda Metallurgical Plant, (Glavgosexpertiza) to be made, and construction technical regulator in Nickel settlement of a loading point for high- and successful state environmental review and installation works to commence (Glavgosexpertiza) received • Pre-commissioning grade concentrate • Some equipment supply contracts signed • Construction and installation works • Construction and installation at the loading point, • Development of design documentation for Phase 1 at Copper Plant will be carried out works completed and shipping of low-grade for Phase 1 at Copper Plant and documentation for Phase 2 to be prepared • Finished concentrate concentrate production launched and pre-commissioning of the plant started

16 17 NORNICKEL 2019

Mining projects SKALISTY MINE TAIMYRSKY MINE

Location Location

Norilsk Industrial District, Krasnoyarsk Norilsk Industrial District, Krasnoyarsk Region Region

Project overview Project overview

The Skalisty mine development The Taimyrsky mine development project aims to ramp up ore project aims to sustain ore production production to 2.5 Mtpa by 2020 at 4.3 Mtpa until 2025 by tapping into and maintain this level until 2025 the rich copper-nickel ore reserves through mining the rich and cuprous of the Oktyabrskoye deposit. In 2020– ore reserves of the Talnakhskoye 2024, the project’s CAPEX has been and Oktyabrskoye deposits. In 2020– budgeted for a total of RUB 32.8 bn 2025, the project’s CAPEX has been (USD 491.6 mln). budgeted for a total of RUB 58.3 bn (USD 0.85 bn).

Ore reserves1 Ore reserves1 53 mln t 139 mln t Average metal content Average metal content NI – 3.2 % NI – 1.2 % Cu – ​3.7 % Cu – 1.9 % PGMs – ​10.0 g/t PGMs – ​4.5 g/t

The Skalisty mine of Nornickel’s Polar Division extracts ore from the Talnakhskoye and Oktyabrskoye deposits. Taimyrsky mine of Nornickel’s Polar Division extracts ore In 2019, the mine extracted 2.3 mln t of rich ore and 88 kt from the Oktyabrskoye Deposit. In 2019, the mine extracted of cuprous ore. about 4.1 mln t of rich ore.

Project timeline '19 '20 Project timeline '19 '20–'24

• CAPEX – ​of RUB 3.7 bn (USD 58 mln) • Commissioning of the ventilation shaft No. 10 • CAPEX – of RUB 4.3 bn (USD 67 mln) Commissioning of 1.15 Mtpa mining capacity • Refurbishment of ventilation shaft No. 10 • Commissioning 400 ktpa of saleable ore capacity • 5.6 km of underground workings completed to maintain ore production at 4.3 Mtpa completed, and the main ventilation unit launched • Pre-commissioning at the gas-fired boiler house launched

1/ According to JORC standards.

18 19 NORNICKEL 2019

Mining projects OKTYABRSKY MINE KOMSOMOLSKY MINE

Location Location

Norilsk Industrial District, Krasnoyarsk Norilsk Industrial District, Krasnoyarsk Region Territory (Polar Division)

Project overview Project overview

The Oktyabrsky mine development The Komsomolsky mine development project aims to maintain and gradually project aims to maintain ore ramp up production to 6 Mtpa by 2025, production at 4 Mtpa until 2023, through mining 38.5 mln t of the rich, by mining the rich, cuprous, disseminated and cuprous ore reserves and disseminated ore reserves of the Oktyabrskoye deposit. In 2020– of the Talnakhskoye and Oktyabrskoye 2025, the project’s CAPEX has been deposits. In 2020–2023, the project’s budgeted for a total of RUB 3.8 bn (USD CAPEX has been budgeted for a total 56.1 mln). of RUB 13.7 bn (USD 204.5 mln).

Ore reserves1 Ore reserves1 215 mln t 182 mln t Average metal content Average metal content NI – 0.6 % NI – 0.6 % Cu – ​2.1 % Cu – 1.1 % PGMs – ​5.8 g/t PGMs – ​4.8 g/t

Oktyabrsky mine of Nornickel’s Polar Division extracts ore The Komsomolsky mine of Nornickel’s Polar Division from the Oktyabrskoye deposit. In 2019, the mine extracted produces ore from the Talnakhskoye and Oktyabrskoye 5.4 mln t of ore. deposits. In 2019, the mine extracted 4.0 mln t of ore.

Project timeline '19 '20–'25 Project timeline '19 '20–'23

• CAPEX – of RUB 1.7 bn (USD 27 mln) • Commissioning 300 Ktpa cuprous ore • CAPEX – of RUB 3.5 bn (USD 54 mln) Commissioning 1.5 Mtpa of saleable ore capacity • 2.6 km of underground workings completed and 1.15 Mtpa ore capacity to maintain • 4.5 km of underground workings completed production volumes

1/ According to JORC standards.

20 21 NORNICKEL 2019

Mining projects Energy projects

MEDVEZHY RUCHEY (SOUTH CLUSTER) ENERGY INFRASTRUCTURE UPGRADES Location Location

Norilsk Industrial District, Krasnoyarsk Norilsk Industrial District, Krasnoyarsk Region Region

Project overview Project overview

The project aims to ramp up ore Energy infrastructure upgrade projects production to 9 Mtpa by 2027, first aim to replace outdated and obsolete by expanding the open pit (open- HPP turbines and CHPP units, pit operations) and then through and retrofit key elements of the gas underground mining. In 2020–2027, transmission system. These initiatives the project’s CAPEX has been budgeted should markedly extend the service for a total of RUB 63.1 bn (USD 0.9 bn). life of key energy infrastructure facilities, enhance the reliability of energy and gas supply, increase the amount of renewable energy generated, and enable the creation

1 of an energy saving ecosystem. Ore reserves In 2020–2025, energy infrastructure CAPEX has been budgeted for a total 42 mln t of RUB 135 bn (USD 2 bn). Average metal content In 2017, Nornickel established Medvezhy Ruchey, a wholly- owned subsidiary that operates the assets of the South Cluster. NI – 0.3 % The South Cluster comprises the Norilsk Concentrator Cu – 0.4 % (with a processing capacity of 9.3 Mtpa), the northern part PGMs – 6.0 g/t of the Norilsk-1 deposit, developed by the Zapolyarny open- pit mine and the Zapolyarnaya underground mine, as well as the tailing dump No. 1 and Lebyazhye tailing dump. Currently, the Norilsk Concentrator processes all disseminated ores from the Zapolyarny mine and cuprous and disseminated ores Nornickel operates its own energy assets, which comprise four from the Oktyabrskoye and Talnakhskoye deposits. In 2019, natural gas fields, three thermal power plants (CHPP-1, CHPP- the plant processed 7.5 mln t of ore, with nickel recovery 2, and CHPP-3), two hydropower plants (Ust-Khantayskaya in bulk concentrate reaching 71.3%. In 2019, the Zapolyarny HPP projects and Kureyskaya HPP), gas pipelines, and power mine produced 1.6 mln t of disseminated ore. In 2019, the South lines. The Company’s energy sources include renewables Cluster project’s CAPEX was RUB 5.0 bn (USD 76 mln). (hydropower) and gaseous hydrocarbons (natural gas).

Project timeline '19 '20 '21–'22 Project timeline '19 '20–'25

• CAPEX • Completion of feasibility • Construction • CAPEX of RUB 15.9 bn (USD 246 mln) • Replacement of two power units at CHPP-2 of RUB 1.6 bn (USD 24 mln) study and detailed and installation works, • Hydropower units at Ust-Khantayskaya HPP and CHPP-3 • Stripping completed engineering equipment delivery (turbine and electrical shops) replaced • Modernisation of power grid facilities and gas • Exploration conducted • Completion of design • Launch of ore production • Power unit equipment at CHPP-2 replaced transmission equipment upgrades • Preparation of the project documentation • Turbine replacement and the introduction Design documentation • Application for the approval of an automated dispatch system at HPPs started from the government’s technical regulator (Glavgosexpertiza) • Launch of construction and installation works

1/ According to JORC standards.

22 23 NORNICKEL 2019

Processing projects BYSTRINSKY GOK (CHITA PROJECT) NICKEL TANKHOUSE UPGRADE

Location Location

16 km east of Gazimursky Zavod, Monchegorsk, Murmansk Region Gazimuro-Zavodsky District, Zabaykalsky Region Project overview

Project overview The tankhouse #2 upgrade project aims to increase efficiency of nickel cathode The Bystrinsky GOK construction production, by utilizing the technology project has been made up of an open- of nickel electrowinning from chlorine pit mine at the Bystrinskoye deposit; dissolved tube furnace nickel powder, a concentrator with all associated and also increase nickel cathodes’ infrastructure, including a power line capacity from 120 ktpa to 145 ktpa. and the 227 km Borzya–Gazimursky The new technology will help to improve Zavod railway line; as well as a rotation metal’s purity and reduce air emissions. camp. In 2020–2021, the project’s CAPEX will Construction of the open-pit total RUB 2.9 bn (USD 43.4 mln). mine and the concentrator started in 2013. In 2017, a 220 kV power line was commissioned and a camp for 1,047 people was built. Hot commissioning of the concentrator started in October 2017. The concentrator came online in December 2019. The project is expected to ramp up to its design capacity by 2021.

Launched in 2019, GRK Bystrinskoye (Bystrinsky GOK) Ore reserves1 is Nornickel’s new copper, gold and iron concentrate project. It is the largest greenfield project in the Russian mining industry, mln t comprised of ore mining, concentration and shipment of end 316 products to customers. Nornickel owns 50.01% in Bystrinsky Average metal content GOK, with CIS Natural Resources Fund holding 39.32%, and the remaining 10.67% owned by Highland Fund. In 2005– Cu – 0.7 % 2020, the project’s CAPEX estimated at a total of RUB 92.5 bn Tankhouse #2 of Kola MMC produces nickel cathodes using (USD 1.8 bn). electrowinning technology. Fe3O4 – ​23 % Au – ​0.9 g/t

In 2020–2022, the project’s CAPEX has been budgeted Project timeline for a total of Project timeline '19 '20 RUB 16.7 bln '19 '20 (USD 252 mln). • CAPEX • The concentrator • CAPEX of RUB 4.8 bn (USD 74.5 mln) Pre-commissioning and ramping up to design The project’s design of RUB 6.7 bn (USD 103 mln) is expected to reach • Refurbishment of electrowinning cells –98% capacity completion capacity • 7.5 mln t of ore mined, its design capacity 43.5 kt of copper concentrate, of metals in concentrate: 177 koz of gold concentrate, Cu – 55–65 kt; Au –

Mtpa and 1.3 mln t of iron ore 220–240 koz; Fe3О4 (Fe – 10 concentrate produced. 66%) – 1.5–1.7 mln t Approximately new jobs EBITDA of USD 349 mln ~2,000 positions

1/ According to the Russian classification (А + В + С1 + С2).

24 25 О Компании Стратегический Обзор рынка Обзор Устойчивое Корпоративное Управление Взаимодействие Финансовая Дополнительная «НОРНИКЕЛЬ» отчет металлов бизнеса развитие управление рисками с инвесторами отчетность по МСФО информация Годовой отчет 2019

Processing projects TALNAKH CONCENTRATOR

Location

Norilsk Industrial District, Krasnoyarsk Region

Project overview

The Talnakh Concentrator (Polar Division) processes rich, cuprous, and disseminated ores from the Oktyabrskoye and Talnakhskoye deposits and produces nickel-pyrrhotite and copper concentrates. In 2019, the plant processed 10.7 mln t of ore, with nickel recovery in bulk concentrate reaching 85.9% (+2.7% y-o-y).

The new concentration technology should increase The concentrator’s upgrade has been rolled out recovery by 4%-7% for all key in three stages. Stage 1, which was completed metals. in 2015, included the reconstruction of existing floatation capacity and the replacement of outdated flotation cells in order to maintain the concentration capacity at 7.5 Mtpa. Stage 2 involved the expansion of the main 3rd Stage project timeline building, the reconstruction of the reagent preparation shop, and the construction '19 '20–'22 '23–'24 of additional ball and vertical mills, as well as the 1st Stage of the tailing dump, all of which helped to increase capacity to 10 Mtpa. This • CAPEX • Development • Commissioning of RUB 424 mln (USD 7 mln) of engineering Ramping up to design stage was completed in 2018. The 3rd Stage • • The construction site inspected, documents capacity of the Talnakh Concentrator upgrade includes preparatory work completed • Construction a capacity ramp-up to 18 Mtpa and construction • Design documentation completed and installation works of the tailing dump’s 2nd Stage. The project’s • Approval from the government’s • Equipment delivery completion is slated for 2023, reaching design technical regulator • Pre-commissioning capacity by 2024. The new concentration (Glavgosexpertiza) received technology should increase recovery by 4%–7% and construction permit secured for all key metals. CAPEX for the 3rd Stage • Preparatory work in the main building of Talnakh Concentrator of Talnakh Concentrator upgrade in 2020–2024 completed is estimated at RUB 40 bn (about USD 0.6 bn).

26 27 NORNICKEL 2019

POLAR DIVISION Selected facts about the city of Norilsk 45 days 8 months AND MEDVEZHY RUCHEY November 30 — January 13 a year of an average Mined ore (mt) being the average duration monthly temperature (SOUTH CLUSTER) of the polar night being below zero 68 days mt Polar Division overview Medvezhy Ruchey (South Cluster) overview May 19 — July 25 2 2019 being the average snow falls in winter Polar Division is the Group’s flagship wholly-owned subsidiary operating a full Medvezhy Ruchey (100%-owned) in 2019 duration of the polar 18.4 mt day upstream-integrated metals production cycle starting from ore mining and operates Norilsk‑1 deposit with mined finishing with the metals refining and shipment of end products to customers. ore volume of 1.6 mt in 2019. Polar Division operates the Company's largest ore field, Talnakh deposit, with a total mined volume of 17 mtpa. Mining: The Norilsk‑1 deposit (copper-nickel sulphide ores) Home to 5 Mining: The Talnakh and Oktyabrskoye deposits (copper-nickel sulphide ores) Concentration: Norilsk Concentrator indigenous Concentration: Talnakh Concentrator ethnic groups. Mine Smelting: Nadezhda Metallurgical Plant, Copper Plant, PGM Concentrate Shop In 2019, Polar Division and Medvezhy "Taimyrsky" (part of Copper Plant) Ruchey combined accounted for 71% Refining: Copper Plant and 36% of the Group’s total copper and PGMs end products, respectively. 2010 Location Mine Products: Talnakh "Oktyabrsky" Polar Division and Medvezhy Ruchey are located above Kara Sea • copper cathodes; the Arctic Circle on the Taimyr Peninsula in the north • nickel converter matte (containing Cu and PGMs) of the Krasnoyarsk region in Russia. They are linked Talnakh  to «mainland» Russia only by river transportation via for processing at Kola MMC; Concentrator the Yenisey River, sea transportation via the Northern • precious metals concentrate; tellurium in billots; Mine Sea Route and by air, with no ground transportation • "Komsomolskaya" connection with other parts of Russia available. • technical sulphur, selenium Mine "Skalistaya" Saleable metal production1

356 1,042 251 2019 2019 Plant 353 987 260 Plant Norilsk Copper Plant 2018 2018 Nadezhda 307 956 259 Metallurgical 2017 2017

51 280 1,703 499 Norilsk 2016 2016 Concentrator

97 293 1,935 488 2015 2015 122 298 2,065 500 Kayerkan 2014 2014 Mine 123 297 2,006 504 2013 2013 "Zapolyarnaya"

124 296 1,989 529 2012 2012 Airport 124 304 2,038 536 2011 2011 Alykel

124 309 2,053 529 2010 2010 The number Port The population of employees Dudinka of Norilsk city approximately Nickel (kt) Copper (kt) Palladium (koz) Platinum (koz) Dudinka 1/ Due to reconfiguration of downstream facilities, Nickel Plant (of Polar Division) located in the city of Norilsk was shutdown in 2016, so that production of refined nickel at Polar Division was fully k k ceased and production of PGMs reduced. Since then all nickel refining was moved to Kola MMC 181 ~20 28 and Norilsk Nickel Harjavalta.. 29 NORNICKEL 2019

KOLA MMC Saleable metal production

166 87

2019

Overview Products: 158 83 2018 Mined ore (mt) Kola MMC is Nornickel's wholly-owned subsidiary that is fully integrated nickel cathodes and carbonyl; • 157 81 upstream into Polar Division operations. In 2019, Kola MMC accounted saleable nickel concentrate; • 2017 for 73%, 17% and 62% of the Group’s total nickel, copper and PGMs end • copper cathodes; products, respectively. • saleable copper and nickel saleable 131 70 intermediate products; 2016 2019 Mining: Zhdanovskoye, Zapolyarnoye, Kotselvaara and Semiletka • electrolytic cobalt; 7.9in 2019mt 125 63 deposits • cobalt concentrate; 2015 Concentration: Zapolyarny Concentrator • precious metal concentrates; 106 57 Smelting: Smelting Shop (located in Nickel settlement), • sulphur acid; 2014 Briquetting Shop (located in Zapolyarny town), crushed converter • 109 62 Metallurgical Shop (located in Monchegorsk town) matte for processing 2013 Refining: Nickel refining Tank-houses №1 and №2 at Norilsk Nickel Harjavalta. (located in Monchegorsk town) 110 57 2012

Location 113 60 2011 2010 Kola MMC is located Barents 111 56 on the Kola Peninsula Sea 2010 in Russia's Murmansk Region. Nickel (kt) Copper (kt)

1,826 439 2019 Concentrator Murmansk 1,684 381 Transport 2018 Division "Severny" 1,782 401 мine 2017 Zapolyarny Monchegorsk 851 173 2016

671 134 2015

Briquetting 595 127 Shop Refining facilities 2014 in Monchegorsk 574 123 process converter 2013 Refining matte from Polar Shop Division. 639 131 Nickel 2012

666 136 2011

670 134 2010 Smelting Shop Palladium (koz) Platinum (koz)

The number of employees 8.2 k 30 31 NORNICKEL 2019 GRK BYSTRINSKOYE Overview Products: The number of employees 2019 GRK Bystrinskoye (50.01%-owned) is Nornickel’s new mining and • copper concentrate; processing project, which produces copper and gold (as well as iron) • gold concentrate; Mined ore concentrates. In 2019, Bystrinsky GOK accounted for 9% of the Group’s • iron ore concentrate total copper end products. k 2.2 10.5 mt Mining: Open-pit mining at the Bystrinskoye deposit Concentration: Concentrator with a capacity of 10.0 mtpa Seleable metal production Average metal grades Ore reserves Fe in magnetite Golg Cu concentrate Au1 (in concentrate) 0.7% 23% 0.9 g/t 316 mt 177 koz Copper (in concentrate) Sretensk Location kt GRK Bystrinskoye 43 is located in the Gazimursky Zavod Iron ore Zabaykalsky Region, concentrate 25 km away from Lake Gazimursky Zavod, Baikal Bystrinsky project 350 km away from Chita and 300 km China 1,311 kt away from the border Mongolia with China. Aleksandrovsky Zavod

Borzya

Chita

1/ According to the Russian classification

(А + В + С1 + С2).

32 33 NORNICKEL 2019

NORILSK NICKEL Saleable metal production

62 13 54 12 HARJAVALTA 2019 2019 Overview Products: 61 18 58 11 2018 2018 Harjavalta nickel refinery was acquired by the Group in 2007 • nickel cathodes and briquettes; (100%-owned). Harjavalta facility processes the Company's Russian • nickel salts, solutions, powders; 60 13 42 10 feedstock and nickel-bearing raw materials sourced from third-party • cobalt sulphate and solutions; 2017 2017 suppliers. Founded in 1959, Harjavalta is the only nickel refinery in • PGM-bearing copper cake. 54 10 64 22 Finland and one of the largest in Europe with a total capacity of 66 ktpa 2016 2016

of nickel products. 43 13 78 33 2015 2015 The facility uses sulphur acid leaching, the best-in-class technology with the metal recovery rates of above 98%. 43 11 74 31 In 2019, Norilsk Nickel Harjavalta accounted for 27%, 3 and 2% of the 2014 2014 Group’s total nickel, copper and PGMs end products, respectively. 44 7 39 16 2013 2013

46 1 21 9 Location 2012 2012

49 6 34 12 2011 2011 Norilsk Nickel Harjavalta is located Finland 49 11 48 15 212 km north-west 2010 2010 from Helsinki, Finland. Nickel (kt) Copper (kt) Palladium (koz) Platinum (koz)

St. Petersburg

Nickel-bearingfrom third feedstock parties

Helsinki Russian nickel-bearingMatte/converter matte feedstock from Kola MMC Cu Norilsk Nickel Harjavalta refinery

cake • Cu cake Co

PRODUCTS

sulphates • solutions Ni • The number cathodes • briquettes of employees • salts • powders • solutions • 291

34 35 NORNICKEL 2019 CLIMATE CHANGE

Nornickel’s Board of Directors considers climate change as an important KEY CLIMATE CHANGE RISKS matter, which is being reviewed as part of a broader environmental 1. Insufficient water resources: water shortages in storage reservoirs of Nornickel’s hydropower strategy. The climate change has been recently added to the Company’s facilities may result in insufficient water head at HPP turbines leading to lower power output operating and strategic agendas agenda, which is being supervised by the as well as drinking water shortages in Norilsk.

First Vice President – Chief Operating Officer. Impact on Nornickel’s development Key risk factors goal and strategy Risk assessment Mitigation

In 2019, an internal working group was set up comprised of several Vice Presidents to monitor the progress of the Extreme weather events (droughts) Efficient delivery of finished Impact on goals: medium. The Company manages the risk through: Company’s environmental programmes and initiatives including ones related to climate change. The group is led by caused by climate change products (metals) Source of risk: external. • Closed water circuits to reduce water Gareth Penny, Chairman of the Board of Directors. in line with the production Year-on-year change in risk: withdrawal from external sources programme. Timely none • Regular hydrological observations supply of products to forecast water levels in rivers and other to consumers. Social water bodies CLIMATE RISK CONCENTRATION responsibility: comfort • Cooperation with the Federal Service and safety of people living for Hydrometeorology and Environmental MANAGEMENT in Nornickel’s regions Monitoring (Rosgidromet) AIR TEMPERATURES STAY BELOW of operation in setting up permanent hydrological As part of its risk management strategy, FREEZING POINT FOR ABOUT EIGHT and meteorological monitoring stations MONTHS A YEAR to improve the accuracy of water Nornickel implements a range of level forecasts for major rivers across measures to monitor and control Nornickel’s regions of operation climate-related risks. These activities • Dredging the Norilskaya River enable Nornickel to keep climate risks and reducing energy consumption STRONG GUSTS OF WIND WITH SPEEDS at an acceptable level. Occurrence of at production facilities in case of risk OF UP TO 50 M/S ARE FOLLOWED BY occurrence climate risks may also unlock additional DEAD CALMS LASTING FOR WEEKS • Replacing hydropower plant equipment opportunities for Nornickel, driven by to increase electricity output through a strong demand for metals essential improving the efficiency of hydropower for the development of a low-carbon units (implementation period: 2012–2021) economy globally. POLAR NIGHTS AND TWILIGHTS LAST FOR MORE THAN 100 DAYS Pretty much all metals produced by the Company are widely used in transition to low-carbon economy: platinum ON AVERAGE, THERE ARE NO MORE 2. Permafrost thawing: loss of bearing capacity of soil under pile foundations can lead group metals (PGMs) are used in auto THAN 70 SUNNY DAYS PER YEAR to deformation and subsequent collapse of buildings and structures. catalytic converters, nickel is a key component in EV batteries, and copper Impact on Nornickel’s is used in EV charging infrastructure. development PERMAFROST IS 300 TO 500 METRES Key risk factors goal and strategy Risk assessment Mitigation Hydropower is the main source of DEEP renewable energy for the Company. The Climate change, increase in average Efficient delivery of finished Impact on goals: medium. The Company manages the risk through: annual temperature over the last products (metals) Source of risk: external. • Regular monitoring of soil condition use of other renewables such as solar, 15 to 20 years Increased depth in line with the production Year-on-year change in risk: under the foundations of buildings geothermal, and wind energy is limited, of seasonal permafrost thawing. programme. none and structures built on permafrost SOILS AND ICE ARE PRONE TO as Nornickel’s main production assets Timely supply of products • Geodetic monitoring of buildings are located north of the Arctic Circle in SEASONAL THAWING to consumers. Social movement harsh climatic conditions: responsibility: comfort • Measurements of soil temperatures and safety of people living under building foundations in Nornickel’s regions • Monitoring the compliance of its facilities of operation with operational requirements for crawl spaces Since its establishment in 1935, the Company has successfully operated in these challenging climatic conditions and • Recommendations and corrective action already incorporated them in the design of its infrastructure and energy mix, with having developed fully captive energy plans to ensure safe operating conditions for buildings and structures assets, relying on low-carbon fuels, i.e. natural gas (about 90% of the energy mix), and renewable hydropower (about 10%).

36 37 NORNICKEL 2019 CLIMATE CHANGE

USE OF RENEWABLES AND ENERGY EFFICIENCY GHG EMISSIONS Nornickel’s strategic ambition is to stabilise its annual greenhouse gas emissions at a level not exceeding The Company sources energy locally, primarily from low-carbon natural gas and renewable energy sources, namely two 10 to 12 mln t of CO₂-equivalent, after factoring hydropower plants. Diesel fuel, fuel oil, petrol and jet fuel are used by its transportation assets. Use of high-carbon fuel by In 2019, GHG emissions (Scope1+2) in its scheduled production growth and facilities’ energy assets is minimal. Only small amounts of coal are used in certain production processes. amounted to approximately 9.9 Mtpa. modernization projects, and completion of its major environmental programme. Group’s electricity generation and electricity and fuel consumption (TJ) GHG emissions, mln t of СО₂ equivalent1 GHG emission intensity index2 (%) No. Indicator 2017 2018 2019 Indicator 2017 2018 2019 100 100 96 1 Scope 1 10.2 9.9 9.8 87 90 1 Fuel consumption by the Company 156,569 148,910 144,772 78 73 Scope 2 0.1 0.1 0.1 1.1 • natural gas 134,709 129,335 125,329 Total emissions 1.2 • diesel fuel and fuel oil 15,221 13,788 13,535 (scope 1 + 2) 10.3 10.0 9.9 Down 27% 1.3 • petrol and jet fuel 5,178 4,127 3,820 from 2013 2013 2014 2015 2016 2017 2018 2019 1.4 • coal 2 1,460 1,660 2,087 1/ The estimate was made in 2019 as per the GHG-Protocol 2/ Carbon intensity index is calculated as carbon emissions per tonne 2 Electricity and heat from own renewable sources (HPPs) 12,414 14,877 15,058 Guidelines and includes carbon dioxide (СО₂) and methane (СН₄) of copper equivalent as a percentage relative to its level in 2013, emissions. assumed as 100%. 3 Electricity and heat purchased from third parties 10,483 10,931 11,331

4 Sales of electricity and heat to third parties 19,503 18,926 18,766 WATER 5 Total consumption of electricity and fuel (1 + 2 + 3 – 4) 159,962 155,792 152,395 The Company’s major production assets are located in regions with sufficient water resources. Nonetheless, the Company is extremely careful about its use of fresh water and strictly complies with restrictions applicable to

1/ Including the fuel used to generate electricity for Norilsk. industrial water withdrawal. The Company is committed to sustainable use of water resources and prevention of 2/ Coal is only used in production processes, with Kola MMC accounting for 45% of total consumption, GRK Bystrinskoye 27, the Polar Division 13, cement production 9, and other water body pollution. Nornickel’s key production facilities use closed water circuits to reduce fresh water withdrawal. subsidiaries 6. Furthermore, the Company never withdraws water from protected natural areas. In 2019, 87% of all water used by the Company was recycled or reused. Water is mostly withdrawn from surface and underground water bodies as well as from wastewater of other companies and natural water inflow. Natural water inflow and meltwater accounted for 12% of the total water withdrawal in 2019. All facilities using water have programmes in place to monitor water bodies and water protection areas. Wastewater discharge also does not exceed the approved limits or have any major impact on The Company’s priority energy source is hydropower generated by Ust-Khantayskaya and Kureyskaya HPPs. In 2019, biodiversity of water bodies and related habitats. renewables accounted for 45% of total electricity consumed by the Group and 54% of power consumption in the Norilsk Industrial District. WATER WITHDRAWAL WATER CONSUMPTION WASTEWATER Electricity consumption (TJ) 319 Mcm 1,344 Mcm = 272 Mcm DISCHARGE ( ) 44% 45% Nornickel is committed to the responsible use NEW WATER 38% of heat and electricity. 87.5% of electricity is SURFACE generated by own energy companies supplying SOURCES — 227 MCM + 1,072 Mcm 142 Mcm (REUSED AND RECYCLED WATER) 12,175 14,480 14,837 electricity to both the Company’s facilities and UNDERGROUND third parties. OURCES — 26 MCM CLEAN — 76 MCM WATER REUSED 18,501 TREATED — 5 MCM 20,180 18,762 Nornickel’s investment programme prioritises WASTEWATER — 21 MCM IN OTHER PRODUCTION several major projects to fully unlock the PROCESSES — 31 MCM (2%) NATURAL WATER INSUFFICIENTLY potential of renewable power sources INFLOW — 37 MCM TREATED — 26 MCM (hydropower) and drive energy savings. RECYCLED WATER — 2017 2018 2019 1,141 MCM (85%) OTHER — 9 MCM CONTAMINATED — Electricity from natural gas Electricity from HPPs Share of renewables 36 MCM

38 39 NORNICKEL 2019 MINERAL BASE Minerals reserves and resourses as at December 31, 20192

Nornickel operates the world’s best polymetallic mineral Metal grade Contained metal resources comprised of Class-1 mining assets located in Russia's >80 years Ore Ni Cu Pd Pt Au 6 PGM Ni Cu Pd Pt Au 6 PGM Taimyr Peninsula. Greenfield and brownfield mine development of resources at the current Indicator (kt) (%) (%) (g/t) (g/t) (g/t) (g/t) (kt) (kt) (koz) (koz) (koz) (koz) supports the Company’s long-term sustainable growth strategy. production rate TAIMYR PENINSULA

Proven and probable 1 RESERVES AND RESOURCES reserves 672,815 0.92 1.72 4.19 1.11 0.24 5.55 6,176 11,598 90,585 23,967 5,200 119,987

Measured and indicated resources 1,698,853 0.69 1.30 3.53 1.00 0.21 4.74 11,778 22,167 193,056 54,456 11,428 259,157 1 Ore Body 2 Inclined shaft Inferred resources 438,473 0.85 1.73 4.21 1.09 0.25 5.53 3,707 7,585 59,401 15,375 3,526 77,899 Measured and indicated 3 Ramp KOLA PENINSULA (disseminated ore) 4 resources Skip shaft 5 Cage shaft Proven and probable reserves 84,682 0.62 0.30 0.03 0.02 0.01 0.05 524 256 78 51 24 130 6 Ventilation shaft Measured and indicated 2,193 mt resources 320,943 0.69 0.33 0.05 0.03 0.02 0.08 2,247 1,089 488 314 177 862 Inferred resources 143,625 0.63 0.31 0.04 0.03 0.01 0.07 909 448 184 121 60 320

AUSTRALIA (Honeymoon Well)

Cu — 23.2 mt Measured and indicated resources (nickel sulfide ores) 173,300 0.68 – – – – – 1,180 – – – – – Ni — 15.2 mt 2 3 Inferred resources Proven and probable (nickel sulfide ores) 11,900 0.68 – – – – – 81 – – – – – reserves PGMs — 260 moz 1 Inferred resources 5 (nickel laterite ores) 339,000 0.81 – – – – – 2,746 – – – – – 4 Geography of mineral TOTAL RUSSIAN ASSETS resources mt 757 Proven and probable 6 reserves 757,497 0.88 1.56 3.72 0.99 0.21 4.93 6,700 11,854 90,663 24,018 5,224 120,117 Taimyr Peninsula Ni, Cu, Au, Pt, Pd, Rh, Ru, Os, Ur, Co Measured and indicated resources 2,019,796 0.69 1.15 2.98 0.84 0.18 4.00 13,982 23,237 193,536 54,763 11,602 260,003 Kola Peninsula Ni, Cu, Au, Pt, Pd, Rh, Ru, Os, Ur, Co Cu – 11.9 mt Inferred resources 582,098 0.79 1.38 3.18 0.83 0.19 4.18 4,612 8,031 59,585 15,496 3,586 78,219

Zabaykalsky Krai TOTAL RUSSIAN AND INTERNATIONAL ASSETS Ni – 6.7 mt Cu, Au, Ag, Fe Proven and probable Australia (license) PGMs – 120 moz reserves 784,543 0.88 1.56 3.72 0.99 0.21 4.93 6,867 12,129 92,957 24,660 5,360 123,137 Ni Measured and indicated resources 2,209,142 0.69 1.06 2.74 0.78 0.16 3.69 15,319 23,526 195,929 55,436 11,742 263,158

Inferred resources 936,009 0.80 0.86 1.99 0.52 0.12 2.61 7,486 8,101 59,938 15,556 3,605 78,641

1/ Data regarding the mineral resources and ore reserves of the deposits of the Taimyr and Kola peninsulas were classified according to the Australasian Code for Reporting of Mineral Resources and Ore Reserves (JORC code), created by the Australasian Institute of Mining and Metallurgy, the Australian Institute of Geoscientists, and the Minerals Council of Australia, subject to the terminology recommended by the Russian Code for Public Reporting of Exploration Results, Mineral Resources, Mineral Reserves (NAEN Code). Proven and probable ore reserves are included in mineral resources. Data regarding the reserves and resources is based on the balance-sheet reserves of A, B, С1 and С2, categories (according to the terminology of the State Committee for Mineral Reserves) as of the end of the given calendar year. 1/ The Company’s reserves and resources are reported according to JORC standards as of 31 The six platinum group metals (PGMs) are platinum, palladium, rhodium, ruthenium, osmium, and iridium. The four elements are platinum, palladium, rhodium and gold. December 2018 and include wholly-owned international assets and exclude ore deposits Ore losses applied ranged from 1.6 % to 26% and dilution from 6% to 31.9%. in the Zabaykalsky Region. PGMs include six platinum group metals: platinum, palladium, Excluding deposits in Zabaykalsky Region. rhodium, ruthenium, osmium, and iridium. Figures given as Total may differ from the sum of individual numbers due to rounding. Certain values may in some instances vary slightly from previously published values.

40 41 NORNICKEL 2019 OPERATING PERFORMANCE ORE OUTPUT (mln t) Metals recovery in smelting (%)

Asset 2010 2011 2012 2013 2014 2015 2016 2017 2018 Type of ore / Asset 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2019

Copper-nickel sulphide ores 24.5 24.7 24.6 24.8 25.2 25.3 24.9 25.0 25.2 26.3 Nickel

Polar Division 16.1 16.6 16.7 16.7 17.0 17.3 17.2 15.7 15.7 16.8 Polar Division & Medvezhy Ruchey1 93.2 92.9 91.8 91.5 92.4 93.1 93.4 93.9 94.6 94.6 Medvezhy Ruchey (South Cluster) 1.6 1.7 1.6 Kola MMC2 n. a. n. a. n. a. n. a. n. a. 96.5 96.8 96.5 96.7 96.7 Kola MMC 8.3 8.1 7.9 8.0 8.1 8.0 7.6 7.6 7.9 7.9 Kola MMC3 97.7 97.7 97.8 97.7 97.8 97.8 98.0 98.2 98.0 97.0 Gold-iron-copper ores n. a. n. a. n. a. n. a. n. a. n. a. n. a. n. a. 7.9 10.5 3 1 Norilsk Nickel Harjavalta 96.0 96.4 98.3 96.4 97.1 97.8 98.3 98.5 97.9 97.9 GRK Bystrinkoye n. a. n. a. n. a. n. a. n. a. n. a. n. a. n. a. 7.9 10.5 Copper 1/ Norilsk Nickel Group owns 50.01% of GRK Bystrinkoye (Chita Copper Project). Production results are shown metal in concentrate for sale on 100% basis and fully consolidated in total operational results. The concentrator at the Bystrinsky project was launched in 2018 as part of the hot commissioning stage and was fully Polar Division & Medvezhy commissioned in 2019. Ruchey1 94.5 94.7 94.2 94.1 94.7 94.2 94.1 94.0 94.4 94.1

Kola MMC2 n. a. n. a. n. a. n. a. n. a. 96.2 96.6 96.2 96.1 96.2 Average mined grades Kola MMC3 97.2 97.4 97.3 97.3 97.2 97.3 97.1 97.4 97.6 96.5

Asset 2010 2011 2012 2013 2014 2015 2016 2017 2018 3 2019 Norilsk Nickel Harjavalta 91.0 91.3 94.8 96.4 97.1 99.6 99.7 99.7 99.7 99.8 Nickel (%) PGMs Polar Division & Medvezhy Ruchey 1.4 1.4 1.3 1.3 1.3 1.3 1.2 1.3 1.3 1.3 Polar Division & Medvezhy 1 Kola MMC 0.7 0.7 0.7 0.7 0.7 0.6 0.5 0.5 0.6 0.5 Ruchey 93.8 94.1 93.2 93.0 93.3 93.8 95.0 95.6 95.9 95.8

Copper (%) Kola MMC3 96.9 96.3 96.8 95.8 95.1 96.3 93.4 96.7 94.0 91.6

Polar Division & Medvezhy Ruchey 2.3 2.2 2.1 2.1 2.1 2.1 2.1 2.2 2.2 2.2 Norilsk Nickel Harjavalta3 85.6 93.6 96.9 97.0 97.0 99.6 99.4 99.3 99.8 99.8 Kola MMC 0.3 0.3 0.3 0.3 0.3 0.3 0.2 0.2 0.2 0.2 1/ Feedstock to finished products; GRK Bystrinkoye n. a. n. a. n. a. n. a. n. a. n. a. n. a. n. a. 0.4 0.6 2/ Feedstock to converter matte; 3/ In refining, converter matter to finished products. PGMs (g/t1)

Polar Division & Medvezhy Ruchey 7.5 7.1 7.4 7.1 6.8 6.9 6.8 6.8 6.8 6.9

Kola MMC 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 Saleable metal production

1/ Including five platinum group metals: palladium, platinum, rhodium, ruthenium, and iridium. Commodity 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Metals recovery in concentration (%) Nickel (kt) 296 295 300 285 274 266 236 217 219 229

Including from own Russian Asset 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 feed 236 235 223 219 223 221 197 210 217 225

Nickel 1 Copper (kt) 388 378 364 371 368 369 360 401 474 499 1 Polar Division & Medvezhy Ruchey 82.4 82.1 82.5 82.0 82.0 81.3 77.1 79.9 81.5 83.1 Including from own Russian Kola MMC 73.1 71.5 71.8 72.5 72.4 72.7 69.0 69.8 69.5 67.9 feed 366 363 344 346 346 353 344 399 474 499

Copper Palladium (koz) 2,855 2,806 2,732 2,662 2,752 2,689 2,618 2,780 2,729 2,922

Polar Division & Medvezhy Ruchey 95.8 95.7 96.2 96.0 95.8 95.5 94.2 94.7 94.6 95.21 Including from own Russian feed 2,723 2,704 2,624 2,529 2,582 2,575 2,526 2,728 2,729 2,919 Kola MMC 73.8 72.6 74.4 74.9 75.2 76.0 73.6 75.4 74.1 73.2 Platinum (koz) 692 696 683 650 662 656 644 670 653 702 GRK Bystrinkoye n. a. n. a. n. a. n. a. n. a. n. a. n. a. n. a. 82.9 87.7 Including from own Russian PGMs feed 663 672 658 604 595 610 610 650 653 700 Polar Division & Medvezhy Ruchey 79.7 82.0 80.6 81.6 81.4 79.3 77.7 81.5 82.7 85.21 1/ From 2018 copper volumes includes 100% of GRK Bystrinkoye production. 42 1/ Metals recovery in bulk concentrate. 43 NORNICKEL 2019

Eurobonds SHAREHOLDER Instrument 2020 (LPN) 2022 (LPN) 2022 (LPN) 2023 (LPN) 2024 (LPN) ISSUER MMC FINANCE D.A.C. INFORMATION Offering date 28.10.2013 08.06.2017 14.10.2015 11.04.2017 28.10.2019 Maturity date 28.10.2020 08.04.2022 14.10.2022 11.04.2023 28.10.2024 Issue size (USD mln) 1,000 500 1,000 1,000 750 SECURITIES The Company has investment grade Coupon rate (%) 5.550 3.849 6.625 4.100 3.375 credit ratings from all the three major As of 31 December 2019, the The Company's market global rating agencies: Coupon dates 28 October/28 April 08 October/08 April 14 October/14 April 11 October/11 April 28 October/28 April authorised capital of MMC Norilsk capitalisation at the end of Issue rating (F/M/S) BBB−/Bаa2/BBB− ВВВ−/–/ВВВ− BBB−/Bаa2/BBB− ВВВ−/–/ВВВ− BBB−/Bаa2/BBB− Nickel was comprised of 158,245,476 2019 increased by 62.6% Fitch BBB− ordinary shares with a par value of RUB year-on-year to Stable 1 each. The Company had no preferred Standard & Poor’s BBB− shares outstanding. Stable USD 48.3 bn Dividends Dividend yield Shares Moody’s Baa2 14.0% 14.9% Stable 11.7% 1/ Note: Dividend The Company's ordinary shares have Developing world’s 7.3% 7.2% 26.3 yield was calculated been listed on Moscow Exchange best Tier-1 mining on the basis of dividends 21.3 in USD terms 18.8 (MOEX, ticker symbol: GMKN) since Market cap as at calendar year-end assets, Nornickel has 18.1 as of the date of the Board 2001 and are included in the MOEX (USD bn) been able to provide recommendation for AGM approval 7.8 Blue Chip Index. an industry-leading and average annual dividend yield to its price of Nornickel 2019 48.3 ADRs ADRs (as reported shareholders over the by Bloomberg). Nornickel has ADR program since 2018 29.7 last five years. 2015 2016 2017 2018 2019 2001. Shares are convertible into 2017 29.7 Dividends paid per share in the reporting period (USD) Dividend yield1 ADRs at a ratio of 1:10. Depositary 2016 26.6 services for ADR transactions are 2015 20.0 provided by the Bank of New York Tax treatment of income from securities (%) Dividend history1 Mellon, and custody services are provided by VTB Bank. ADRs are Income Interest Dividend Declared dividend Dividend per share traded in the electronic trading Shareholders’ structure as of year-end (mln t) from securities income income system of OTC markets of the Item transactions on securities on securities Period RUB mln USD mln2 RUB USD2 41.8 27.8 30.4 London Stock Exchange (LSE, ticker: 100 2019 Individuals Total for 2019 323,647 4,754 1,488 22.75 MNOD), on the US OTC market 3 37.6 27.8 34.6 Residents 131 13 13 FY2019 88,174 1,154 557 7.29 (ticker: NILSY), and several other 100 2018 exchanges. Non-residents 302 30 15 9M 2019 95,595 1,500 604 9.48 37.6 27.8 34.6 100 6M 2019 139,878 2,100 884 13.27 2017 Legal entities Total for 2018 248,214 3,739 1,569 23.63 Russian entities 201 20 133 Olderfrey Holdings Ltd (Indirect ownership via controlled entities) "EN+ Group IPJSC (indirect ownership via controlled entities, including UC RUSAL Plc. FY2018 125,413 1,939 793 12.25 Breakdown of shares and ADRs In 2017–2018 shows the interest (directly and indirectly) UC RUSAL Plc." Non-resident Free float 4 6M 2018 122,802 1,800 776 11.37 as of 31 December 2019 entities 20 20 15 Total for 2017 131,689 2,162 832 13.66 1/ Or 0% if by the selling date the Company shares have been held for more than Rouble bonds five years and the requirements for the share of real estate in the Company’s assets FY2017 96,210 1,562 608 9.87 as outlined in paragraph 2, Article 2842 of the Russian Tax Code have been met. 2/ If the Company shares are sold in Russia. A 0% rate is applied if by the selling 6M 2017 35,479 600 224 3.79 date the shares have been held for more than five years and the requirements Total for 2016 140,894 2,339 890 14.78 Exchange-traded bonds, Exchange-traded bonds, for the share of real estate in the Company’s assets as outlined in paragraph 2, Instrument BO-05 BO-001P-01 Article 2842 of the Russian Tax Code have been met. FY2016 70,593 1,239 446 7.83 158,245,476 3/ Or 0%, if as at the date of the dividend payout resolution a Russian entity has been shares Issuer PJSC MMC NORILSK NICKEL owning an interest of 50% (and more) in the authorised capital of the entity paying 9M 2016 70,301 1,100 444 6.95 dividends, for 365 days (and more). ISIN RU000A0JW5C7 RU000A100VQ6 4/ If the income is classified as income of a foreign entity from sources in the Russian Total for 2015 135,642 2,148 857 13.57 Federation in accordance with Clause 1, Article 309 of the Russian Tax Code. Offering date 19.02.2016 01.10.2019 FY2015 36,419 548 230 3.46

Maturity date 06.02.2026 24.09.2024 9M 2015 50,947 800 322 5.06 6M 2015 48,276 800 305 5.06 Shares 74.3% Issue size (RUB bn) 15 25

ADRs 25.7% Coupon rate (%) 11.60 7.20 1/ Earlier dividend history is available on the Company’s website: https://www. nornickel.com/investors/dividends/ Coupon dates Every 182 days starting from the offering date 2/ 2 Calculated using the Bank of Russia's exchange rate as of the date of the Board of Directors’ dividend recommendation. 3/ 3 On 7 April 2020, the Company’s Board of Directors recommended that the Annual General Meeting of Shareholders approve a dividend for FY2019. 44 45