INVESTING IN SUSTAINABLE 2018 DEVELOPMENT CONTENTS

Group profile 2

Key highlights 4

Business model 6

Key investment projects 8

Mineral base 16

Operating performance 18

Polar Division and Bear Creek 20

Kola MMC 22

GRK Bystrinskoye 24

Norilsk Nickel Harjavalta 26

Products and distribution 28

Energy infrastructure 31

Shareholder information 32

Metal products and uses 34

Consumption trends 35

Metals content in vehicles 36 Nornickel www.nornickel.com

2 3

GROUP PROFILE

OVERVIEW MINERAL RESOURCES

The Norilsk Nickel Group (Nornickel) Mining and Metallurgical Company the Group’s production flow, processing Nornickel operates the unique Talnakh Ore deposit on the Taimyr Peninsula ranking the world’s is Russia’s largest metals and mining Norilsk Nickel (MMC Norilsk Nickel) the Group’s Russian feedstock. In South best polymetallic deposit in terms of metal grades and size. Development of the Talnakh deposit company and the world’s largest producer is the parent company of the Norilsk Africa, the Group owns 50% of Nkomati, is the key driver of the Company’s long-term sustainable growth strategy. of palladium and refined nickel and a major Nickel Group. It operates production which operates a nickel mine of the same producer of platinum and copper. units in Russia and Finland and owns name. The co-shareholder of the company 2,209 mt Measured and indicated resources of ore The Group also produces cobalt, rhodium, a 50% stake in some mining assets is African Rainbow Minerals. Proven and probable reserves 785 mt silver, gold, iridium, ruthenium, selenium, in South Africa. The Group’s core mining of ore tellurium, and sulphur. The Company's and metallurgical assets are located The Group operates captive global 12.1 mt of copper 23.5 mt of copper shares are traded on the Moscow in Russia and represented by vertically sales network, fuel and energy assets, 6.9 mt of nikel 15.3 mt of nikel Exchange and are included in the Moscow integrated operations. They include river and sea port terminals, river fleet 3.8 kt of PGMs 8.2 kt of PGMs Exchange’s Blue Chip Index. Its ADRs wholly owned subsidiaries Polar Division and a unique Arctic cargo sea fleet, (123 moz) (263 moz) are traded on the US OTC market, and Bear Creek both located on the Taimyr in-house capital construction and repairs and the OTC markets of the London, Peninsula, and Kola MMC located subsidiaries. In addition, Nornickel Berlin and Frankfurt stock exchanges. on the Kola Peninsula, and 50.01% owned GRK owns one of the Russia’s leading mining Leading EBITDA Leading dividend As of the year-end 2018, Nornickel's weight Bystrinskoe located in the Zabaykalsky and metallurgical R&D centres. in the leading emerging market stock Region. In Finland, Nornickel operates Norilsk indices such as MSCI Emerging Markets Nickel Harjavalta (100% owned), a nickel margin in global mining yield in global mining  and MSCI Russia indices was of 0.24% refinery that was acquired by the Group  industry in 2018 and 6.4%, respectively. in 2007. The refineryis fully integrated into Exports >95% sales industry in 2018 Nornicel 53% Nornicel 11.8% GLOBAL METAL PRODUCTION RANKING / PRIMARY METAL SHARE Peer 2 Peer 2 52% 9.6%

Peer 3 Peer 3 45% 5.9%

Peer 4 Peer 4 in palladium in refined nickel in platinum 41% 4.6% Peer 5 Peer 5 No. (39%) No. (23%) No. (10%) 28% 4.4% Peer 6 1 1 4 Peer 6 (No. 3 in total nickel production – 11%) 27% 4.0%

 The Company’s reserves and resources are reported according to JORC standards as of 31 December 2018 and include wholly-owned international assets and exclude ore deposits in the Zabaykalsky Region. PGMs include six platinum group metals: platinum, palladium, rhodium, ruthenium, osmium, and iridium.  Peer group includes Anglo American, BHP, Glencore, Rio Tinto and Vale. in rhodium in cobalt in copper  Dividend yield was calculated on the basis of dividends recommendation announced by the Board and average price of Nornickel ADRs (as reported by Bloomberg) in each No. 4 (8%) No. 8 (3%) No.11 (2%) calendar year. Nornickel www.nornickel.com

4 5  Dividends paid per share in the reported period (USD) Dividend yield (%)

13.6 14.0 11.8 7.3 7.2

20.7 21.3 KEY HIGHLIGHTS 18.1 18.8 7.8

FINANCIAL PERFORMANCE 2014 2015 2016 2017 2018 Capital Investments (USD bn)

Revenue (USD bn) Net profit (USD bn) EBITDA (USD bn) EBITDA margin (%) Stay-in-business Commercial Bystrinsky project Net debt (USD bn) Net debt / EBITDA (ratio)

2.1 53 + 9 p.p. 50 2.0 1.0 1.2 1.1 11.9 11.7 48 47 1.7 1.7 0.4 0.6 0.1 0.3 1.6 8.2 + 28% 44 1.3 0.9 0.2 8.5 8.3 9.1 0.1 0.9 0.8 0.7 7.1 5.7 6.2 0.6 4.3 56% 4.5 3.9 4.0 + 3.5 4.2 3.1 0.7 0.7 0.7 0.7 2.0 1.7 2.5 2.1 0.6 + 44%

2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018

OPERATING PERFORMANCE

Nickel (kt) Copper (kt) Palladium (koz) Platinum (koz)

 From own Russian feed From 3d parties feed From own Russian feed From 3d parties feed Bystrinsky project From own Russian feed From 3d parties feed From own Russian feed From 3d parties feed

474 114 92 52 46 20 266 7 2 17 16 3 34 46 236 19 2,7702,800 219 220225 401 40–46 2,689 2,618 2,780 2,729 656 670 653 646670 39 217 369 360 644 221 217 2,575 650 197 210 353 344 610 610 398 454 430–450 2,728 2,526

2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 forecast forecast forecast forecast

SUSTAINABLE PERFORMANCE

Accident Statistics Reused water (as % of total water used) Emissions Use of renewable energy (as % of total electrical energy used)  Lost-time injury Fatalities Fatalities among the contractors LTIFR FIFR SO2 (kt) GHG (mt)

92 93 86 85 86 0.62 10 10 10

0.48 0.44 2,009 0.35 1,948 1,878 1,870 0.23 1,785 40 44 + 1% 36 38 + 16% 0.12 26 0.11

0.07 74 0.07 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 0.05 56 52 43

26  Dividend yield was calculated on the basis of dividends recommendation announced by the Board and average price of Nornickel ADRs (as reported by Bloomberg) 14 13 in each calendar year. 8 8 8 5 5 6 1 2  Norilsk Nickel Group owns 50.01% of Bystrinsky (Chita) Copper Project. Production results are shown on а 100% basis and fully consolidated in the Company’s financial and operating results. The hot commissioning of the project started on October 31, 2017. 2014 2015 2016 2017 2018  The indicator has been recorded since 2014. STAKEHOLDERS BUSINESS ISS Rankings MSCI ESG Governance – 3, MODEL Government Rating B Environmental – 4, Shareholders Reiterated Social – 3 in March 2019 (1 – lowest risk, 10 – highest risk) Reiterated in May 2019

ISS-Oekom Sustainalytics Score 69 (out of 100) Rating C- (medium) Raised Reiterated in December 2018 in December 201 DIVIDEND National Environmental projects NET YIELD protection PROFIT 11.8% + 4.6 pp + 44% 3.1 EBITDA USD bn FTSE4Good UN Global + 56% Emerging Index Compact 6.2 Member since 2016 Other sales USD bn Score 3.1 (out of 5) 3% Raised in June 2018 Other metals – 44% + 0.71 9% – 0.70 + 25% 0.59 3.01 Local communities REVENUE Personnel 11.7 + 28% I N USD bn T E G 3.67 R A 51% + + 23% T 2.98 E D E N V IR O E 653 NM M 219 koz Pt EN AM Ni TA GR kt L P RO RO Y P GRA IENC MME EFFIC 6 sea vessels 555 river vessels 2,729 474 Gas and energy Production Transportation koz Pd Cu kt 15 aircraft assets assets and logistics 18 helicopters assets PRODUCTION Pd Ni Pt

MEASURED AND INDICATED RESOURCES OUTPUT PROVEN AND PROBABLE RESERVES 25.2 2,209 mt of ore 785 mt of ore mt of ore

SUSTAINABLE BUSINESS MODEL – STRONG CORPORATE GOVERNANCE Nornickel www.nornickel.com

8 9 MINING / PROCESSING PROJECTS

GRK Bystrinskoye

KEY INVESTMENT PROJECTS GRK Bystrinskoye (Bystrinsky GOK / Chita Project) is Nornickel’s new mining project producing copper and gold (as well as iron) concentrates. This is the largest greenfield project realized in the Russian mining industry, which includes ore mining, concentration and shipment of end products to customers. The Company owns 50.01% of Bystrinsky GOK.

Project highlights

Ore reserves: 326 mt Average metal grades: Cu — 0.7% Location Fe O (magnetite) — 23% Gazimuro-Zavodsky District, Chita Region, 3 4  Zabaykalsky Region Au — 0.9 g/t

The plant’s Project overview design capacity: mtpa Nornickel launched open-pit mining Construction of the open-pit mine 10 at the Bystrinskoye Deposit, built and the MPP started in 2013. In 2017, and launched the mining and processing the 220 kV power line were commissioned Jobs created: circa k plant (MPP) along with all of the necessary and a camp for 1,047 employees was built. 2 infrastructure, including a power line, a 227 Hot commissioning of the MPP started km Borzya – Gazimursky Zavod rail line, in October 2017, with the project expected  According to the Russian classification of mineral

and a camp. to reach its design capacity by 2021. resources (А+В+С1+С2).

2018 2019 2020

•• CAPEX – RUB 10.7 bln •• Ore production to increase •• The MPP (USD 168 mln) to 8.0 mt, copper in concentrate to reach its design capacity •• 7.9 mt of ore mined, to 40–46 kt, gold in concentrate of 65–70 kt copper in concentrate, 19.4 kt of copper concentrate, to 6.0–6.5 t and magnetite 8.5–9.0 t gold in concentrate 3 t of gold concentrate concentrate to 1.3-1.4 mt and 1.9–2.1 mt of magnetite and 0.4 mt of magnetite concentrate (Fe – 66%) concentrate produced. EBITDA per annum (on a 100% basis) of USD 96 mln was generated Nornickel www.nornickel.com

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Upgrade of Talnakh Concentrator Development of the South Cluster

Talnakh Concentrator is operated The South Cluster is comprised by the Company’s Polar of the Norilsk Concentrator Division. It processes rich, (processing capacity of 9.3 mtpa), cuprous and disseminated the northern part of the Norilsk-1 ores from the Oktyabrskoye deposit that is developed and Talnakh deposits by Zapolyarny open pit Mine to produce nickel-pyrrhotite and Zapolyarnaya underground and copper concentrates. In 2018, mine mining, as well as tailings the plant processed 10.4 mt pit No. 1 and Lebyazhye tailings of ore, with nickel recovery in bulk pit. Norilsk Concentrator concentrate reaching 83.2% processes all disseminated (+1.5% y-o-y). ores from Zapolyarny Mine and cuprous and disseminated ores from the Oktyabrskoye and Talnakh deposits. In 2018, the plant Phase-3 highlights processed 6.8 mt of ore, with nickel recovery in bulk concentrate reaching 71.9% (+0.2% y-o-y). CAPEX of Zapolyarny Mine produced 1.7 mt Location Project overview of disseminated ore. In 2017, Location to maintain the concentration capacity RUB 40 bn (USD 0.6 bn) Norilsk Industrial District, Krasnoyarsk According to the project the South Nornickel established Bear Creek Norilsk Industrial District, Krasnoyarsk at 7.5 mtpa (completed in 2015). Phase-2 Region Cluster ore production will be ramped up (Medvezhy Ruchey), a fully-owned Region (Polar Division) involved the expansion of the main building, Ramp up of capacity to 9 mtpa. This will be done in two stages: subsidiary that operates the assets reconstruction of the reagent preparation first, by expanding the open pit and then of the South Cluster. Project overview shop, and construction of two ball mills from mtpa to mtpa expansion of underground mine. Project targets expansion of capacity of 300 cubic metres each and five vertical 10 18 Project highlights and a roll out of a more efficient grinding mills, which resulted in capacity Building the second extension concentration technology. increase to 10.2 mtpa. The tailings pit was of the tailings pit Operating costs of the South Cluster’s also expanded. Phase-2 was completed CAPEX until 2022 of RUB bn Ore reserves of mt 45 165 PGM production are expected to be The Talnakh Concentrator upgrade in 2018. Phase-3 includes concetrator's Commissioning planned for (USD 0.7 bn) in the bottom quartile of the global is implemented in three phases. Phase-1 capacity expansion to 18 mtpa Average Ni — 0.2% metal grades PGM production cost curve. included reconstruction of existing and is scheduled for completion by 2023. Cu — 0.3% Design capaciy  floatation lines and replacement of flotation 2023 expected in 2027 PGM — 3.9 g/t cells, which got obsolete in order  According to the Bear Creek (Medvezhy Ruchey) Mine development project. 2018 2019 2020—2022 2023 2018 2019 2021—2022

•• CAPEX – RUB 0.8 bn •• The State Technical Expert •• ˗Construction, equipment delivery •• Feasibility study completed •• Launch of stripping works •• Launch of ore mining (USD 12 mln) Review (Glavdosexpettiza) and installation works at the open pit •• Construction site inspection approval •• Completion of design and preparatory works completed documentation •• Design documentation developed

•• ˗Full commissioning Nornickel www.nornickel.com

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Nickel refinery refurbishment at Kola MMC Construction of a concentrate shipment facility and separating shop at Kola MMC

Tank-house #2 of Kola MMC’s The project will involve the upgrade Severonickel Plant produces of Kola MMC's Concentrator cathode nickel. Combined and construction of a concentrate with Tank-house #1, nickel refinery shipment facility. Located produced a total of 147 kt of nickel in Zapolyarny, the Concentrator in 2018. produces briquetted copper-nickel concentrate. In 2018, it processed 7.9 mt of ore.

Project highlights

CAPEX of

RUB 4.9 bn (USD 85 mln)

Project completion and launch Location Project overview along side technology upgrade to chlorine of saleable concentrate Severonickel Plant, Monchegorsk, Tank-house #2 is scheduled to increase leaching technology, which will should result Location with the capacity of 200 ktpa of dry production scheduled Murmansk Region (Kola MMC) refining capacity from 120 ktpa to 145 ktpa in improved metal recovery. Zapolyarny, Murmansk Region (Kola MMC) concentrate. Upon project completion, low grade concentrate is expected to be for 2019 Project highlights Project overview shipped to third parties, while high grade Construction of an additional floatation concentrate will be sent for further section at the Concentrator to separate processing at the Smelting Shop of Kola Increase Tank-house #2 capacity Increase nickel recovery from converter high grade from low grade concentrates, MMC located in Nickel settlement. matte and a concentrate shipment facility from 120 ktpa by 1% to 145 ktpa of nickel

2018 2019 2018 2019

•• CAPEX of RUB 10.8 bn •• Reaching the design capacity •• CAPEX of RUB 1.1 bn •• The State Technical Expert (USD 169 mln) and performance targets (USD 17 mln) Review (Glavgosexpertiza) •• Gradual capacity commissioning, •• The concentrate shipment approval progress of 82% facility: Outotec prepared basic •• Completion of all construction engineering design and signed and installation works a contract for equipment supplies •• Launch of finished concentrate •• Thickeners dismantled production and plant and utility infrastructure relocated, commissioning construction and installation of the shipment facility started Nornickel www.nornickel.com

14 15 MINING PROJECT ENVIRONMENTAL PROJECT

Skalisty mine Sulphur Project at Polar Division

Skalisty mine is developed Sulphur Project is a large- by Nornickel’s Polar Division scale environmental project and produces ore from the Talnakh designed to achieve a reduction and Oktyabrskoye deposits. in sulphur dioxide emissions In 2018, the mine extracted 2.0 mt at Nadezhda Metallurgical Plant of rich ore. and Copper Plant (both operated by the Company’s Polar Division) by 75% from 2015 level.

Location Project highlights Norilsk Industrial District, Krasnoyarsk Region (Polar Division) CAPEX of up to USD bn Project overview 2.5 Mining rich and cuprous ores Project of the Talnakhskoye and Oktyabrskoye completion deposits by Skalisty mine to increase is scheduled for 2023 to 2.4 mtpa in 2023.

Location According to the project, Nadezhda furnaces of Copper Plant will be shut down Norilsk Industrial District, Krasnoyarsk Metallurgical Plant will get new facilities due to their proximity to the city of Norilsk Project highlights Region (Polar Division) to capture sulphur-rich gases, out residential area and new converter of which sulphuric acid is to be produced furnaces will be built at Nadezhda Project overview and further neutralised by limestone, Metallurgical Plant. Concurrently, The project targets a 75% reduction with waste gypsum produced as a result. a number of infrastructure projects Ore reserves: Average in sulphur dioxide emissions in the Norilsk Copper Plant capture sulphur dioxide will be implemented to supply the new metal content: Ni — 3.1% Industrial District by 2023. and sulphuric acid production facilities with all the necessary materials, Cu — 3.6% mt will be upgraded. In addition, converter power and gas. 57 PGM — 9.7 g/t

 According to JORC standards.

2018 2019 2023 2018 2019 2020—2022 2023

•• CAPEX – RUB 13.9 bn •• Completion of ventilation •• Reaching design capacity •• CAPEX of RUB 2.3 bn •• Finish the preparation •• Construction and equipment (USD 218 mln) shaft–10 construction (USD 36 mln) of engineering documents, obtain installation •• Ore production reached 2 mtpa •• Completion of skip-cage shaft–1 •• Site preparation at Copper Plant regulatory approvals •• Sinking of ventilation shaft–10 sinking •• Complete tender auctions / completed (total of 2.1 km) procedures •• 206 m sinking of skip-cage •• Launch of construction shaft–1 (total of 1.9 km out of 2.1 km) •• Full commissioning Nornickel www.nornickel.com

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Minerals reserves Metal grade Contained metal and resourses Ore Ni Cu Pd Pt Au 6 PGM Ni Cu Pd Pt Au 6 PGM  as at December 31, 2018 kt % % g/t g/t g/t g/t kt kt koz koz koz koz

TAIMYR PENINSULA Proven and probable reserves 683,625 0.92 1.73 4.23 1.12 0.24 5.60 6,286 11,858 92,864 24,600 5,331 122,982 MINERAL BASE Measured and indicated resources 1,708,565 0.70 1.31 3.56 1.00 0.21 4.78 11,892 22,437 195,441 55,122 11,565 262,296 Inferred resources 440,898 0.85 1.74 4.22 1.09 0.25 5.54 3,750 7,653 59,754 15,435 3,545 78,321 Nornickel operates the world’s best polymetallic mineral resources comprised of Class-1 years mining assets located in Russia's Taimyr Peninsula. Greenfield and brownfield mine >80 KOLA PENINSULA (disseminated ore) development supports the Company’s long-term sustainable growth strategy. of reserves-to-production ratio Proven and probable at the current production level reserves 100,918 0.58 0.27 0.03 0.02 0.01 0.05 581 271 93 60 29 155 Measured and indicated  resources 327,277 0.69 0.33 0.05 0.03 0.02 0.08 2,247 1,089 488 314 177 862 RESERVES AND RESOURCES Inferred resources 144,211 0.63 0.31 0.04 0.03 0.01 0.07 909 448 184 121 60 320

AUSTRALIA (Honeymoon Well) 1 Ore Body Measured and indicated Measured and indicated 2 Inclined shaft resources resources (nickel sulfide 3 Ramp ores) 173,300 0.68 0 0 0 0 0 1,180 0 0 0 0 0 4 Skip shaft Inferred resources 5 Cage shaft mt (nickel sulfide ores) 11,900 0.68 0 0 0 0 0 81 0 0 0 0 0 2,209 6 Ventilation shaft Inferred resources (nickel laterite ores) 339,000 0.81 0 0 0 0 0 2,746 0 0 0 0 0

TOTAL RUSSIAN ASSETS Total proven and probable Cu – 23.5 mt reserves 784,543 0.88 1.55 0.12 0.03 0.01 0.16 6,867 12,129 92,957 24,660 5,360 123,137 Total measured Ni – 15.3 mt and indicated resources 2,035,842 0.69 1.16 0.10 0.03 0.01 0.13 14,139 23,526 195,929 55,436 11,742 263,158

2 Total inferred resources 585,109 0.80 1.38 0.10 0.03 0.01 0.13 4,659 8,101 59,938 15,556 3,605 78,641 Proven and probable PGMs – 8.2 kt 3 TOTAL RUSSIAN AND INTERNATIONAL ASSETS reserves (263 moz) 1 Total proven and probable Geography of metals 5 reserves 784,543 – – – – – – 6,867 12,129 92,957 24,660 5,360 123,137 produced by Norilsk Nickel 4 Total measured Taimyr Peninsula 785 mt and indicated resources 2,209,142 – – – – – – 15,319 23,526 195,929 55,436 11,742 263,158 Ni, Cu, Au, Pt, Pd, Rh, Ru, Os, Ur, Co 6 Total inferred resources 936,009 – – – – – – 7,486 8,101 59,938 15,556 3,605 78,641 Kola Peninsula Ni, Cu, Au, Pt, Pd, Rh, Ru, Os, Ur, Co Metal grade Contained metal Zabaykalsky Krai Minerals reserves and resourses Ore Ni Cu Co 4 PGM Ni Cu Co 4 PGM Cu – 12.1 mt  Cu, Au, Ag, Fe as at June 30, 2018 kt % % % g/t kt kt kt koz

Australia (license) Ni – 6.9 mt SOUTH AFRICA (NIKOMATI) Ni Proven and probable reserves 84,450 0.31 0.12 0.02 0.89 261 101 17 2,412 South Africa PGMs – 3.8 kt Measured and indicated resources 172,200 0.35 0.14 0.02 0.96 603 241 34 5,315 Ni, Cu, Co, Rh, Ru, Os, Ur, Pt, Pd (123 moz) Inferred resources 46,350 0.40 0.13 0.02 0.97 185 60 9 1,445

 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). 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. 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. The six platinum group metals (PGMs) are platinum, palladium, rhodium, ruthenium, osmium, and iridium. Hereafter in the annual report, troy ounces are used as a weight measure for PGMs and gold. Proven and probable ore reserves are included in mineral resources.  The Company’s reserves and resources are reported according to JORC standards as Ore losses applied ranged from 1.6 % to 26% and dilution from 6% to 31.9%. of 31 December 2018 and include wholly-owned international assets and exclude ore Excluding deposits in Zabaykalsky Region. deposits in the Zabaykalsky Region. PGMs include six platinum group metals: platinum,  The Company owns 50% of Nkomati, a nickel mine developed jointly with African Rainbow Minerals. Nkomati's performance is reflected in financial results using prorata palladium, rhodium, ruthenium, osmium, and iridium. consolidation and are not included in other Group’s total amounts. Nornickel www.nornickel.com

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OPERATING PERFORMANCE Production assets overview

Ore output (mt)

MINING CONCENTRATION SMELTING REFINING PRODUCT OFFERINGS Asset 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Russian assets (copper-nickel Mines: Cuprous Low grade ores Blister sulphide ores), • Taimyrsky and disseminated Copper ore copper including 23.2 24.5 24.7 24.6 24.8 25.2 25.3 24.9 25.0 25.2 • Oktyabrsky Norilsk Third-party feedstock smelting Concentrator Copper Plant • • Komsomolsky Cu concentrate Copper Slime from Copper: cathodes Polar Division 15.3 16.1 16.6 16.7 16.7 17.0 17.3 17.2 15.7 15.7 Copper Bear Creek • Skalisty Ni concentrate Plant Tankhouse • Sulphur: commercial Bear Creek • Zapolyarny  • Acid: sulphuric (for Company (Medvezhy Ruchey) 1.6 1.7 • Mayak use) Kola MMC 7.9 8.3 8.1 7.9 8.0 8.1 8.0 7.6 7.6 7.9 High grade PGM 17.3 mt of ore and cuprous Cu concentrate Nickel Converter ore Talnakh smelting matte Concentrator Bystrinsky GOK Ni ~ 1.3% Ni-Po concentrate (gold-copper-iron ore) 7.9 (part • Precious metal concentrates Concentrator  Nadezhda Cu ~ 2.2% SPC KUR South Africa Polar Division and Polar Metallurgical of Copper • Selenium: technical  PGM ~ 6.7 g/t Plant Plant) (Nkomati) 1.0 2.5 3.2 5.8 4.4 4.3 4.2 2.8 3.5 3.1

Average mined grades Mines: • Nickel: cathodes, carbonyl, Disseminated Briquettes of Commodity / Asset 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 • Severny ore Zapolyarny Cu-Ni concentrate Smelting PGM concentrate for sale • Concentrator Kaula-Kotselvaara Shop Converter Concentrator • Copper: cathodes, NICKEL Third-party feedstock in Nickel matte Refining Shop concentrate for sale 7.9 mt of ore Polar Division Ni ~ 0.6% • Cobalt: electrolytic, & Bear Creek 1.5% 1.4% 1.4% 1.3% 1.3% 1.3% 1.3% 1.2% 1.3% 1.3%

Kola MMC Cu ~ 0.2% concentrate for sale Kola MMC 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% 0.6% 0.5% 0.5% 0.6% PGM ~ 0.1 g/t • Precious metal concentrates Nkomati • Acid: sulphuric (South Africa) 0.5% 0.4% 0.3% 0.3% 0.4% 0.4% 0.3% 0.4% 0.3% 0.3%

COPPER

Open pits: Polar Division Gold-copper- & Bear Creek 2.6% 2.3% 2.2% 2.1% 2.1% 2.1% 2.1% 2.1% 2.2% 2.2% • Verkhneildikansky iron ore Bystrinsky • Copper, iron: saleable (launch in 2018) GOK concentrates Kola MMC 0.3% 0.3% 0.3% 0.3% 0.3% 0.3% 0.3% 0.2% 0.2% 0.2% • Bystrinsky-2 • Gold: concentrate to be (launch in 2018) Bystrinsky GOK n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 0.4% processed at Polar Division’s • Medny Chainik Nkomati (planned) facilities (Copper Plant) (South Africa) 0.2% 0.2% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% • Yuzhno- Rodstvenny GRK Bystrinskoye PGMs, g/t (planned) Polar Division mt of ore 7.9 Ni & Bear Creek 8.1 7.5 7.1 7.4 7.1 6.8 6.9 6.8 6.8 6.7

Kola MMC 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 Nkomati Mines Disseminated Co Cu (South Africa) 0.4 0.8 0.7 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 3.1 mt of ore ore Concentrator • Saleable concentrate Ni ~ 0.3%

Nkomati Saleable metal production Cu ~ 0.1% Commodity 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Ni matte Nickel, kt 280 296 295 300 285 274 266 236 217 219 from Kola MMC • Nickel: cathodes, briquettes,  Crushed salts, powders, solutions Copper , kt 401 388 378 364 371 368 369 360 401 474 converter matte Nickel refinery • Cobalt: sulphates, solutions from Kola MMC in Finland Palladium, koz 2,794 2,855 2,806 2,732 2,662 2,752 2,689 2,618 2,780 2,729 Third-party • Сopper: saleable cake and cake Platinum, koz 658 692 696 683 650 662 656 644 670 653 NN Harjavalta feedstock for Kola MMC

 In 2H 2017, Nornickel established Bear Cpeek, a subsidiary that operates part of the assets of Polar Division.  Nornickel owns 50% of Nkomati. Production results are reported as metal contained in saleable concentrate on a 50% basis  SPC KUR – stored pyrrhotite concentrate and are not consolidated in the Group’s total operating results. from Kayerkansky Open Pit Coal Mine.  From 2018 copper volumes includes 100% of Bystrinsky GOK production. Nornickel www.nornickel.com

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Selected Facts about Norilsk

POLAR DIVISION Mined ore (mt) 45 days November 30 - January 13 8 months the average duration average monthly AND BEAR CREEK of the polar night temperature below zero

68 days Polar Division overview Bear Creek (Medvezhy Ruchey) overview May 19 - July 25 2 mt the average duration snow falls in winter of the polar day Polar Division is the Group’s flagship wholly-owned subsidiary operating a full upstream- Bear Creek (100%-owned) operates in 2018 integrated metals production cycle starting from ore mining and finishing with the metals Norilsk-1 deposit with mined ore volume 17.3 mt refining and shipment of end products to customers. Polar Division operates the Company's of 1.7 mt in 2018. largest ore field, Talnakh deposit, with a total mined volume of 16 mtpa. Mining: The Norilsk-1 deposit (copper-nickel Home Mining: The Talnakh and Oktyabrskoye deposits (copper-nickel sulphide ores) sulphide ores) to 5 Indigenous Concentration: Talnakh Concentrator Concentration: Norilsk Concentrator ethnic groups Smelting: Nadezhda Metallurgical Plant, Copper Plant, PGM Concentrate Shop (part Mine on the Taimyr of Copper Plant) In 2018, Polar Division and Bear Creek Taimyrsky Peninsula. Refining: Copper Plant combined accounted for 75% and 37% of the Group’s total copper and PGMs end Location products, respectively.

Polar Division and Bear Creek (Medvezhy Ruchey) are located Kara Sea Mine above the Arctic Circle on the Taimyr Peninsula in the north Products Talnakh Oktyabrsky of the Krasnoyarsk region in Russia. They are linked to «mainland» Russia only by river transportation via the Yenisey River, sea transportation via the Northern Sea Route and by air, with no ground •• copper cathodes; transportation connection with other parts of Russia available. •• nickel converter matte (containing Cu Talnakh  and PGMs) for processing at Kola MMC; Concentrator •• precious metals concentrate; Mine Saleable metal production •• sulphur acid; Komsomolskaya •• technical selenium. 353 987 260 Mine 2018 2018 Skalistaya

307 956 259 2017 2017 Plant Norilsk 51 280 1,703 499 Plant Copper Plant Nadezhda 2016 2016 Metallurgical 97 293 1,935 488 2015 2015 Norilsk Concentrator 122 298 2,065 500 2014 2014

123 297 2,006 504 Kayerkan 2013 2013 Mine

124 296 1,989 529 Zapolyarnaya 2012 2012 (Bear Creek )

124 304 2,038 536 2011 2011 Airport

124 309 2,053 529 Alykel 2010 2010

124 324 2,010 505 port 2009 2009 Dudinka The number The population  of employees of Norilsk city Dudinka Nickel, kt Copper, kt Palladium, koz Platinum, koz

 Due to reconfiguration of downstream facilities, Nickel Plant (of Polar Division) located in the city 54.3 k 178 k of Norilsk was shutdown in 2016, so that production of refined nickel at Polar Division was fully ceased and production of PGMs reduced. Since then all nickel refining was moved to Kola MMC and Harjavalta.  Polar Division & auxiliary assets. Nornickel www.nornickel.com

22 23 Saleable metal production

158 83 2018 KOLA MMC 157 81 Mined ore (mt) 2017

131 70 Overview Products 2016

125 63 • Kola MMC is Nornickel's wholly-owned subsidiary that is fully integrated upstream into Polar • nickel cathodes and carbonyl; 2015 Division operations. In 2018, Kola MMC accounted for 72%, 18% and 61% of the Group’s •• saleable nickel concentrate; 106 57 total nickel, copper and PGMs end products, respectively. •• copper cathodes; 2014 •• saleable copper concentrate; Mining: Zhdanovskoye, Zapolyarnoye, Kotselvaara and Semiletka Deposits. •• electrolytic cobalt; 7.9in 2018mt 109 62 Concentration: Zapolyarny Concentrator •• cobalt concentrate; 2013

Smelting: Smelting Shop (located in Nickel settlement), Briquetting Shop (located •• precious metal concentrates; 110 57 in Zapolyarny town), Metallurgical Shop (located in Monchegorsk town) •• sulphur acid; 2012 Refining: Nickel refining Tank Houses #1 and #2 (located in Monchegorsk town) •• crushed converter matte for processing 113 60 at Harjavalta. 2011

111 56 Location 2010

Kola MMC is located Barents  109 59 on the Kola Peninsula Sea 2009 in Russia's Murmansk Region.

Nickel, kt Copper, kt

1,684 382 2018

1,782 401 2017 Concentrator Murmansk 851 173 Transport 2016 Division Severny 671 134 Mine 2015 Zapolyarny Monchegorsk 595 127 2014

574 123 2013

Briquetting 639 131 Section Refining facilities 2012 in Monchegorsk 666 136 process converter 2011 Refining matte from Polar Shop Division. 670 134 Nickel 2010

666 131 2009

Palladium, koz Platinum, koz Smelting Shop

The number  of employees

12.6 k  Kola MMC & auxiliary assets. Nornickel www.nornickel.com

24 25 2018 GRK BYSTRINSKOYE Mined ore 7.9 mt Overview Products  The number of employees

GRK Bystrinskoye (50.01%-owned) is Nornickel’s new mining and processing project, •• copper concentrate; Golg which produces copper and gold (as well as iron) concentrates. In 2018, Bystrinsky GOK •• gold concentrate; 3.4 k (in concentrate) accounted for 4% of the Group’s total copper end products. •• magnetite concentrate.

 GRK Bystrinskoye Mining: Open-pit mining at the Bystrinskoye deposit & auxiliary assets. 90 koz Concentration: Concentrator with a capacity of 10.0 mtpa

Copper Average metal grades (in concentrate)

 Cu Fe3О4 (magnetite) Au Ore reserves 19 kt 0.7% 23% 0.9 g/t 326 mt Iron ore concentrate Sretensk 346 kt Location Gazimursky Zavod Lake GRK Bystrinskoye is located Baikal in the Zabaykalsky Region, 25 km away from Gazimursky Bystrinsky China Zavod, 350 km away project from Chita and 300 km away from the border with China. Mongolia

Aleksandrovsky Zavod

 According to the Russian classification of mineral resources (А+В+С1+С2).

Borzya

Chita Nornickel www.nornickel.com

26 27

Saleable metal production

61 18 58 11 2018 2018 NORILSK NICKEL HARJAVALTA 60 13 42 10 2017 2017

54 10 64 22 Overview Products 2016 2016

43 13 78 33 Harjavalta nickel refinery was acquired by the Group in 2007 (100%-owned). Harjavalta nickel and cobalt feedstock to a BASF •• nickel cathodes and briquettes; 2015 2015 facility processes the Company's Russian feedstock and nickel-bearing raw materials precursor (semifinished product for battery •• nickel salts, solutions, powders; sourced from third-party suppliers. Founded in 1960, Harjavalta is the only nickel refinery cathodes) production facility which is to be •• cobalt sulphate and solutions; 43 11 74 31 in Finland and one of the largest in Europe with a total capacity of 66 ktpa of nickel built adjacent to Harjavalta's site. The facility •• PGM-bearing copper cake. 2014 2014

products. is expected to come on stream by the end 44 7 39 16 2020 with the capacity to supply battery 2013 2013 The facility uses sulphur acid leaching, the best-in-class technology with the metal recovery components for some 300,000 EVs per year. 46 1 21 9 rates of above 98%. 2012 2012 In 2018, Norilsk Nickel Harjavalta In October 2018, BASF and Nornickel signed an agreement to create the first integrated accounted for 28%, 4% 49 6 34 12 2011 2011 platform for manufacturing battery components in Europe to meet the growing demand and 2% of the Group’s total nickel, copper for electric vehicle (EV) batteries. Under the agreement, Norilsk Nickel Harjavalta will supply and PGMs end products, respectively. 49 11 48 15 2010 2010

28 5 18 5 2009 2009 Location St. Petersburg

Norilsk Nickel Harjavalta Finland Nickel, kt Copper, kt Palladium, koz Platinum, koz is located in 212 km away north-west from Helsinki, Finland.

Nickel-bearingfrom third feedstock parties

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

cake • Cu cake Co

PRODUCTS

sulphates • solutions Ni •

cathodes • briquettes • salts • powders The number • solutions • of employees 286 Nornickel www.nornickel.com

28 Distribution network PRODUCT RANGE

In 2018, Nornickel maintained its reputation discussions with potential partners In response to strong growth of demand Kola MMC as a reliable supplier of high quality in the battery market to expand its product by battery manufacturers, the Company PRODUCTS Russia GRK Bystrinskoye products. The integrated index of customer offering. is upgrading its nickel powder packaging satisfaction with the Company's products capacities in order to broaden the range and services matched the criterion Norilsk Nickel Harjavalta is considered of packages and create individual solutions AND DISTRIBUTION for positive performance. as one of world’s leading producers based on consumer preferences. of nickel materials suitable for precursors Customers The Company aims to make sure its (semi-products for manufacturing MMC Norilsk Nickel NORMETIMPEX in Russia product range is in line with the current of the cathode material for batteries). Russia Russia and the CIS For many decades, Nornickel and prospective global metals demand. Norilsk Nickel Harjavalta's nickel and cobalt sulphates are considered the industry's holds the reputation of reliable The Company considers value-added benchmark and are widely used in battery Customers products containing nickel and cobalt manufacturing. Norilsk Nickel Harjavalta supplier of high quality products in Europe for the battery industry as a prospective has a unique to manufacturing flexibility, Bear Creek market for expanding production which enables it to tailor products in line to its customers. The Company (Medvezhy Ruchey) and product offering. Nornickel is holding with consumer preferences. supplies its products Russia Norilsk Nickel Asia Customers to more than 430 customers Hong Kong in Asia in 34 countries. Norilsk Nickel Metals Production of saleable products Norilsk Nickel Harjavalta Metal Trade Overseas AG Trading Shanghai Customers Finland Switzerland China in China  Polar Diviion Kola MMC Nori l Nicel Harjavalta GRK Bytrinoye Kratvetmet

Product 555 18 118 Norilsk Nickel USA Customers Te Ni Pt Ir Ag river vessels helicopters container USA in the US flatcars Cu Se S Co Cu Na2SO4 H2SO4 Ni Co CC IOC Pd Rh Ru Au

Norilsk Airport Bystrinsky Sales by region, % Lesosibirsk 51% Transport Division stake Dudinka Port Port Yenisey River Shipping 82% stake Company

Polar Transport Division

Krasnoyarsk 89% River Port stake Murmansk

Transport Division Ruia Europe Aia America 15 Krasnoyarsk aircrafts Arkhangelsk Transport Division Sales markets Transport Division ■ copper ■ tellurium, selenium ■ sulphur ■ nickel, cobalt ■ copper ■ sodium sulphate ■ sulphuric acid ■ nickel ■ cobalt Norilsk Nickel’s transportation and logistics assets include: ■ copper concentrate ■ iron ore concentrate ■ platinum, palladium ■ iridium, rhodium ■ ruthenium ■ silver, gold Europe 53 •• sea fleet — 6 heavy-duty ice-class vessels; •• river fleet — 556 vessels, including 161 self-propelled and 395 towed Asia 27 vessels; •• rail car and locomotive fleet — 118 container flatcars, 1 switch North and South America 15 locomotive, 1 Yermak electric locomotive, and 1 2М62 diesel locomotive; •• aircraft fleet — 16 helicopters operated by Norilsk Avia and 15 planes Russia and CIS 5  100% government-owned precious metal refinery. Precious metals are refined from raw materials operated by NordStar Airlines. supplied by Polar Division and Kola MMC under a tolling agreement. Nornickel Nornickel www.nornickel.com

31 32 33

Eurobonds

Eurobonds Eurobonds Eurobonds Eurobonds Instrument 2020 (LPN) 2022 (LPN) 2022 (LPN) 2023 (LPN) ENERGY INFRASTRUCTURE SHAREHOLDER INFORMATION Issue size USD 1,000 mln USD 500 mln USD 1,000 mln USD 1,000 mln Coupon rate 5.55% 3.849% 6.625% 4.10% Offering date 28 October 2013 8 June 2017 14 October 2015 11 April 2017 Maturity date 28 October 2020 8 April 2022 14 October 2022 11 April 2023 The Company operates The Company generates electric power SECURITIES Issue rating BBB-/Bаa2/BBB- ВВВ-/ – /ВВВ- BBB-/Bаa2/BBB- ВВВ-/ – /ВВВ- captive gas and power assets from renewable energy sources at Ust- Khantayskaya and Kureyskaya hydro power The Company has investment grade As of 31 December 2018, the authorised markets of the London Stock Exchange in Taimyr Peninsula. Gas assets credit ratings from all the three major produce raw hydrocarbons – plants, which supply energy to the Polar capital of MMC Norilsk Nickel was (LSE, ticker: MNOD), on the US OTC DIVIDENDS Division and local communities. In 2018, global rating agencies: comprised of 158,245,476 ordinary market (ticker: NILSY), and several other natural gas and condensate. the share of renewable energy stood shares with a par value of RUB 1 each. exchanges. The Company manages its Developing world’s best Tier-1 mining assets, Nornickel has been able to provide at 44% for Nornickel and 51% for Norilsk Fitch BBB− The Company had no preferred shares an industry-leading dividend yield to its shareholders over the last five years. power assets through wholly Industrial District. Stable outstanding. Bonds owned subsidiaries, Taimyrgaz, Standard & Poor’s BBB− As of year-end 2018, the Company had four Dividend yield Norilsktransgaz and Norilsk- Stable Shares Eurobond issues outstanding for a total The Company's ordinary shares have amount of USD 3.5 bn with maturities Taimyr Energy Company, which 13.6 14.0 Moody’s Baa3 been listed on Moscow Exchange in 2020, 2022 and 2023, and one issue 11.8 Stable 7.3 7.2 + 4.6 p.p. are engaged in gas power (MOEX, ticker symbol: GMKN) since 2001 of rouble exchange-traded bonds 3,014 21.3 and heat generation, transmission and are included in the MOEX Blue Chip for RUB 15 bn due in 2026. In April 2018, 20.7 mcm 18.1 18.8 and distribution. The energy Index. Nornickel redeemed the Eurobond issue Natural gas production in 2017 Norilsk Thermal power plant + 13.3% sources include renewables for USD 750 mln. (hydropower) and gas. ADRs 7.8 Thermal power plant Nornickel has ADR program since 2001. In November 2018, the Company Nornickel’s major production assets Shares are convertible into ADRs at a ratio registered a 30-year exchange-traded bond are located above the Arctic Circle of 1:10. Depositary services for ADR programme on the Moscow Exchange. 2014 2015 2016 2017 2018 where the winter lasts eight months transactions are provided by the Bank The programme for exchange-traded Dudinka  a year. It is critical for the Group Thermal power plant of New York Mellon, and custody services bond issues was registered for a total Dividends paid per share in the reporting period (USD) Dividend yield (%) to ensure reliable energy supplies to its are provided by VTB Bank. ADRs are traded amount of up to RUB 300 bn or equivalent Oil storage depot production and infrastructure facilities in the electronic trading system of OTC in a foreign currency. Dividend history Dudinka and communities in the regions where Declared dividends Dividend per share/ADR  it operates. Breakdown of outstanding shares and ADRs as of 31 December 2018 Shareholders’ structure as of year-end Period RUB mln USD mln RUB USD Total for 2018 248,214 3,739 1,569 23.63 34.6 27.8 4.2 33.4  2018 FY2018 125,413 1,939 793 12.25 Hydro power plant 6M 2018 122,802 1,800 776 11.37 Ust-Khantayskaya 30.4 27.8 4.2 37.6 2017 Total for 2017 131,689 2,162 832 13.66

30.4 27.8 4.2 37.6 FY2017 96,210 1,562 608 9.87 Gas deposit Hydro power plant 2016 6M 2017 35,479 600 224 3.79 Pelyatkinskoye Kureyskaya Total for 2016 140,894 2,339 890 14.78   441 MW Olderfrey Holdings Ltd UC Rusal Plс Crispian Investments Ltd Other FY2016 70,593 1,239 446 7.83 Gas deposit installed capacity 9M 2016 70,301 1,100 444 6.95 Severo- 600 MW  Indirect owership via controlled entities. Soleninskoye Total for 2015 135,642 2,148 857 13.57 Gas deposit installed capacity FY2015 36,419 548 230 3.46 Messoyakhskoye Shares 59.1 Rouble bond 9M 2015 50,947 800 322 5.06 ADRs 40.9 Instrument Exchange-traded bonds, BO-05 The Company generates electric power 6M 2015 48,276 800 305 5.06 Gas deposit from renewable energy sources at Ust- ISIN RU000A0JW5C7 Yuzhno-Soleninskoye Total for 2014 226,668 4,798 1,432 30.32 Khantayskaya and Kureyskaya hydro Offering date 19 February 2016 power plants FY2014 106,031 2,018 670 12.75 Maturity date 6 February 2026 The Company's 9M 2014 120,637 2,780 762 17.57 In 2017, the share of renewable energy stood market capitalisation was of Issue size RUB 15 bn at 38% for Nornickel and 44% for its Polar Coupon rate 11.6% Division.  Dividend yield was calculated on the basis of dividends recommendation announced by the Board and average price of Coupon dates Each 182 days starting from the offering date Nornickel ADRs (as reported by Bloomberg) in each calendar year. bn USD 29.7  Earlier dividend history is available on the Company’s website: https://www.nornickel.com/investors/dividends/.  Calculated using the Bank of Russia's exchange rate as of the date of the Board of Directors’ dividend recommendation.  On 26 April 2019, the Board of Directors recommended final dividends for 2018 for AGM approval. Nornickel www.nornickel.com

34 35

METAL PRODUCTS AND USES CONSUMPTION TRENDS

LONG TERM TRENDS SUPPORTING CONSUMPTION GROWTH FOR NORILSK NICKEL METAL BASKET

Current consumption trends Prospective consumption trends Ni Cu Pd Pt nickel copper palladium platinum Rising global stainless steel demand in China Vehicles electrification on construction, urbanization Batteries Electrical Catalysts and growth of living standards wires

Vehicle electrification, rollout Chemical China’s infrastructure of charging infrastructure, industry built out growth in renewables Chemical Pipes industry Jewellery

Medicine Reducing diesel market share Fuell cells Medicine Antiseptic Electronics in Europe

Investment Tightening of emission Rising number of gasoline standards and introduction Architecture vehicles on population Nickel Oil refining of real world drive emissions and design and disposable income growth electroplating tests globally

Glass fibre and Alloys Copper rod optical glass Vehicles hybridization

Norilsk Nickel core commodities:

Ni Cu Pd Pt Stainless steel Nornickel

36

METALS CONTENT IN VEHICLES

METALS CONTENT BY LIGHT VEHICLE TYPE

Gasoline Diesel Hybrid incl. PHEV BEV FCEV

CAGR 0% 0% +27% +26% +21%

Market Share 61% 17% 17% 6% <1%

Stainless Steel & Parts +Batteries

Ni 2-3 kg 2-4 kg 2-4 kg 5-15 kg 30-110 kg

Wires & Parts +Electric Motor, Generator Winding Cu  20-25 kg 20-25 kg 45-50 kg 75-80 kg 70-75 kg

Catalysts Fuel Cell PGM 2-5 kg 3-6 kg 2-6 kg 25–35 kg

Pt:Pd ratio 1:4 8:1 1:4

Metal value Up to Up to per vehicle, $340-560 $330-520 $680-970 US$ $2,200 $1,900

Source: Company estimates, LMC Automotive, Bloomberg.

 CAGR for 2017-2025E.  Excluding additional infrastructure demand of 1-8 kg per charger.  Expected market share in 2025 based on production.  Metal values calculated at spot prices as of November 1, 2018.