CORPORATE SOCIAL RESPONSIBILITY REPORT EPORT R ENSURING SIBILITY SIBILITY N ESPO R RELIABILITY OCIAL OCIAL S ORPORATE ORPORATE C NORILSK NICKEL GROUP’S [ 2015 ] ] 2015 GROUP’S [ NICKEL NORILSK 2015 [ 2015 ] CORPORATE SOCIAL RESPONSIBILITY REPORT INSPIRING TRUST 2 [ 2015 ] CORPORATE SOCIAL ReSPONSIBILITY 04 14 26 36 RePORT Statement About Priorities Responsible 48 Anti-money laundering and of the President, the Norilsk and objectives operations counter-terrorist Chairman Nickel Group financing initiatives of the Management 28 The Company’s development 38 Sustainability 49 Corporate Trust Service Board strategy management 34 Overview of performance 38 Corporate 50 Transparency TS across CSR focus areas governance N 51 Product TE responsibility CONTENTS 42 Remuneration N O C 43 Risk management 53 Research 06 22 and development framework 46 Corporate security 54 Economic Results and th performance The 80 47 Preventing and EPORT EPORT R highlights 2015 anniversary fighting corruption of Norilsk Nickel IBILITY IBILITY S PON S E R IAL IAL C 56 70 80 98 122 126 CORPORATE SO CORPORATE Effective Safety Environment Community Awards Appendices ] relationships and accolades 2015 [ 58 Stakeholders and interaction 72 Occupational health 82 Environmental 100 Employees 126 Appendix 1. mechanisms and safety management system and social policy Content Index for “In Accordance” with GRI G4 Guidelines, RSPP Reference Performance Indicators and ISO 26000 58 Dialogue with employees 78 Improvement of social 84 Expenditures 111 Development S 123 and working conditions on environmental protection of local communities 132 Appendix 2. 61 Dialogue with shareholders Identified Material Aspects and Boundaries (GRI G4) and investors 84 Environmental performance 120 Transport accessibility About the report 134 Appendix 3. KEL GROUP’ 62 Dialogue with business partners 89 Biodiversity conservation GRI G4 Specific Standard Disclosure C I N 64 Dialogue with authorities, 92 Impacts from transport K 140 Appendix 4. S communities and non-profit and logistics operations List of Abbreviations organisations ORIL 93 Impacts from foreign N 142 Appendix 5. 67 Environmental operations Glossary dialogue 152 94 Energy conservation 144 Appendix 6. 67 Supply chain and efficiency Opinion of the Russian Union of Industrialists responsibility Contacts and Entrepreneurs’ Council for Non-Financial Reporting 150 Appendix 7. Independent auditor conclusion 4 Statement D BOAR T of the President, Chairman N , , E T M N E E G D A of the Management Board N A PRESI M E E H H T T F F F O O T N N In its anniversary year, Norilsk Nickel once again to a sustainable urban environment. The obsolete Nickel A E M M confirmed its leadership both in the domestic Plant, a major source of air pollution in Norilsk, is not AIR and international markets despite the turbulent included into the upgrade programme and being shut H STATE C macroeconomic environment. down as scheduled. In 2015, the Company developed and approved a roadmap to reduce air pollutant This largely results from the new development strategy emissions at MMC Norilsk Nickel’s Polar Division up we have been implementing since 2013: it has geared to 2020. The initiative seeks to dispose of elemental EPORT EPORT the Company up to face the industry crisis and deliver sulphur at the Nadezhda Metallurgical Plant and R a strong performance. Norilsk Nickel has boasted robust the Copper Plant. returns and exceptionally high dividend yields all along IBILITY IBILITY S with maintaining one of the lowest leverage ratios in In 2015, the key companies of the Norilsk Nickel Group the industry. The Company remains committed to its tax, and their employees extended the Collective Bargaining PON S E social and environmental responsibilities and delivers all Agreement maintaining all the existing social R investment projects as per the approved schedule and commitments and introducing a number of additional IAL IAL C budget. The Company’s stable performance gave rise staff benefits. The Company pays special attention to to Norilsk Nickel’s tax contributions to the budget at all staff training, further improvements in health and safety levels and ensured funding of environmental initiatives culture and implementation of the highest safety and charitable programmes. New approaches to standards. Complete elimination of fatalities remains employee performance management have paved the Company’s top strategic priority. CORPORATE SO CORPORATE the way for rises in the average salary even against the backdrop of economic challenges. The key message of Norilsk Nickel’s 80th anniversary ] year was Creating the Future Together. The events of I would like to reiterate that all this has been achieved the past year served as a proof of this concept, since the 2015 [ through the consistent application of the strategy’s Company’s projects implemented in 2015 are crucial for fundamental principles, including focus on Tier 1 assets, the future of Norilsk Nickel, its employees, people of greater responsibility for the capital and investment Russian towns and cities and Russia as a whole. S returns, optimisation of the value chain and a decisive drive to cut operating costs. Norilsk Nickel remains involved in a number of public- KEL GROUP’ C I private partnership programmes. The Company VLadimir POtanin N K sponsors significant cultural, social and sports PRESIDEnt, CHairman S events across its footprint and seeks to contribute OF THE ManagEMEnt BOard ORIL N 6 Results and highlights 2015 Ni Сu Pd Pt 506.1 456.0 384.5 2012 300 364 2,731 683 366.2 2015 RESULTS AND HIGHLIGHTS 277.0 238.0 2013 285 371 2,661 651 186.5 159.0 EPORT EPORT R 93.4 104.1 2014 274 368 2,749 657 67.4 IBILITY IBILITY S 23.5 PON S E R 2015 266 369 2,689 656 2012 2013 2014 2015 IAL IAL C [G4-8] REVENUE GROSS PROFIT NET PROFIT ‘000 T ‘000 T ‘000 OZ T ‘000 OZ T RUB BN RUB BN RUB BN CORPORATE SO CORPORATE 247.3 ] 277.0 218.2 2015 50 506.1 48 974.5 99.8 [ 238.0 456.0 40 159.9 384.5 154.2 77.8 366.2 186.5 153.3 37 739.8 S 637.0 159.0 133.6 614.7 60.8 55.3 98.4 KEL GROUP’ C I N 31.0 K S ORIL N 2012 2013 2014 2015 2012 2013 2014 2015 2012 2013 2014 2015 2012 2013 2014 2015 2012 2013 2014 2015 2012 2013 2014 2015 2012 2013 2014 2015 REVENUE GROSS PROFIT EBITDA EBITDA DIVIDENDS ASSETS TOTAL CAPEX RUB BN RUB BN RUB BN MARGIN PAID RUB BN RUB BN % RUB BN 8 DIRECT ECONOMIC VALUE THE COMPANY’S POSITION IN THE INDUSTRY [G4-3, G4-4, G4-8] GENERATED AND DISTRIBUTED1 [G4-EC1] 521.2 st PLACE st PLACE rd PLACE th PLACE th PLACE th PLACE 470.8 384.9 1 1 3 4 4 12 367.8 NICKEL PALLADIUM COBALT RHODIUM PLATINUM COPPER PRODUCER PRODUCER PRODUCER PRODUCER PRODUCER PRODUCER 14% 39% 6% 12% 11% 2% OF GLOBAL OF GLOBAL OF GLOBAL OF GLOBAL OF GLOBAL OF GLOBAL 169.5 OUTPUT OUTPUT OUTPUT OUTPUT OUTPUT OUTPUT 158.0 2012 2013 2014 2015 3 2015 RESULTS AND HIGHLIGHTS 87.3 ENVIRONMENTAL INDICATORS DIRECT ECONOMIC 74.4 VALUE GENERATED 38.3 108.3 5.7 RUB BN 3.6 Indicator Unit 2012 2013 2014 2015 58.3 45.7 EPORT EPORT R 2012 2013 Area of disturbed lands as hа 12,513 12,518 13,322 13,313 at the end of the period4 [G4-MM1] IBILITY IBILITY 554.2 S 464.9 PON Energy consumption 5 S 414.4 175.7 TJ — 173,955 169,307 176,395 E by Norilsk Nickel Group [G4-EN3] R 334.7 IAL IAL 162.0 C Total water withdrawal [G4-EN8] mcm 1,319.5 1,348.0 1,417.8 1,421.3 104.5 87.4 Percentage of water reused >90% % 85.7 92.2 92.3 92.6 and recycled6 222.0 Hazard class 5 CORPORATE SO CORPORATE 165.2 waste 2012 2013 2014 2015 Total wastewater discharge mcm 146.5 146.2 145.6 140.5 (practically non-hazardous waste) ECONOMIC VALUE 2.7 7.0 ] as percentage of total waste 47.6 45.0 DISTRIBUTED 2015 [ RUB BN 2014 2015 23.6 43.5 2.10 2.10 2.09 40.5 2.06 19.4 OPERATING EXPENSES 19.0 S 35.1 18.1 PAYROLL AND OTHER EMPLOYEE 33.6 50.2 REMUNERATION AND BENEFITS PAYMENTS TO PROVIDERS OF CAPITAL KEL GROUP’ C (INTEREST, DIVIDENDS) I N 5.9 K -46.5 -32.9 COMMUNITY INVESTMENTS S AND CHARITY2 ORIL GROSS TAX PAYMENTS N 2012 2013 2014 2015 2012 2013 2014 2015 2012 2013 2014 2015 ECONOMIC VALUE TOTAL WEIGHT TOTAL ENVIRONMENTAL RETAINED OF PRODUCTION POLLUTANT EXPENSES AND RUB BN WASTE [G4-EN23] EMISSIONS [G4-EN21] INVESTMENTS [G4-EN31] MT MT RUB BN 3 For Russian operations. 1 The data were calculated on an accrual basis under the IFRS using an in-house methodology developed in line with GRI G4 Guidelines. 4 The 2012–2014 data were adjusted to include Bystrinskoye Mining Company. 2 The calculations do not include CAPEX. 5 No aggregate value was calculated under the GRI G4 Guidelines. 6 Ratio of water recycled and reused to the total volume of water withdrawn for production and domestic needs. 10 SOCIAL INDICATORS Highlights 2015 84.1 85.0 85.6 83.6 84.3 86.3 81.9 82.0 83.0 79.9 83.6 81.6 84.0 82.0 82.3 83.3 Q1 • Norilsk Nickel became • Norilsk and Monchegorsk the general partner of hosted the Arctic Wave • The Company piloted the Science Festival, a key festival of R&D discoveries Stage 1 of Talnakh science promotion event sponsored by the Company.