Investor Presentation
VTB Capital RUSSIA CALLING!
May 21-23, 2013
London
Disclaimer
The information contained herein has been prepared using information available to OJSC MMC
Norilsk Nickel (“Norilsk Nickel” or “NN”) at the time of preparation of the presentation. External or
other factors may have impacted on the business of Norilsk Nickel and the content of this
presentation, since its preparation. In addition all relevant information about Norilsk Nickel may
not be included in this presentation. No representation or warranty, expressed or implied, is made
as to the accuracy, completeness or reliability of the information.
Any forward looking information herein has been prepared on the basis of a number of
assumptions which may prove to be incorrect. Forward looking statements, by the nature, involve
risk and uncertainty and Norilsk Nickel cautions that actual results may differ materially from those
expressed or implied in such statements. Reference should be made to the most recent Annual
Report for a description of the major risk factors. This presentation should not be relied upon as a
recommendation or forecast by Norilsk Nickel, which does not undertake an obligation to release
any revision to these statements.
This presentation does not constitute or form part of any advertisement of securities, any offer or
invitation to sell or issue or any solicitation of any offer to purchase or subscribe for, any shares in
Norilsk Nickel, nor shall it or any part of it nor the fact of its presentation or distribution form the
basis of, or be relied on in connection with, any contract or investment decision.
1
Norilsk Nickel At a Glance
Key highlights

Key financials
World leader in nickel and palladium with top 5 positions
in platinum, cobalt, rhodium and a strong presence in
copper
US$ mln
2006
2007
2008
2009*
2010*
2011
2012
Revenue
11,923
17,119
13,980
8,542
12,775
14,122
12,065
EBITDA
7,736
10,253
5,807
4,198
7,209
7,239
4,932
Long-life, low-cost, vertically integrated producer
margin (%)
65
60
42
49
56
51
41
Net income
5,965
5,276
-555
2,504
5,234
3,626
2,143
High-quality mineral base and production facilities in
Russia
margin (%)
50
31
nm
29
41
26
18
Net debt
-1,388
4,064
4,445
1,685
-2,608
3,514
3,986

Solid financial standing and balance sheet supported by
robust free cash flow
Net debt/
EBITDA
-0.2
0.4
0.8
0.4
-0.4
0.5
0.8

Committed to returning capital to shareholders


Source:
Note:
Company data
* Financial results of discontinued operations (OGK-3 and Stillwater) were deconsolidated for 2009-2010
Revenue mix from metal sales by products &
destinations in 2012
Extensive worldwide operations
Gold
2%
Kola MMC
Platinum
9%
Harjavalta
NN Corporate Headquarters
NN Europe, UK
NN Beijing
NN USA
NN Shanghai
Palladium
16%
NN Hong Kong
Tati Nickel
Nkomati Nickel
Black Swan
Lake Johnston
Cawse
Waterloo
$ 11 bn
Copper
26%
Asia
25%
Nickel
47%
Chita Copper Project
Overseas,
Switzerland
Mining operations
Development projects
Smelting/refining operations
Headquarters and sales offices
Europe
55%
Polar Division
$ 11 bn
North
America
11%
Russia
9%
Source: Norilsk Nickel
2
Unique Mineral Resource Base
Norilsk Nickel possesses extensive mineral resources based on the deposits of the Norilsk industrial
region, as well as the Kola peninsula, and international assets in Southern Africa and Australia
 Norilsk Nickel is one of the leading companies in the world in terms of quality and quantity of nickel sulphide ore resources
 The Talnakh ore deposit at Taimyr Peninsula has a unique geology with high grades of multiple metals
 At current level of production, Norilsk Nickel‘s average mine life exceeds 60 years
Nickel (mln t)
Copper (mln t)
Palladium* (mln oz)
Platinum* (mln oz)
5.96 (c. 12% of global)
8.06
56.59
15.02
Proven and probable
Proven and probable
Proven and probable
Proven and probable
13.25
16.65
136.36
38.93
Measured and indicated
Measured and indicated
Measured and indicated
Measured and indicated
*Excludes international assets
P&P Reserves of Nickel Ore*
8
M&I Resources by Geography
Kola
Peninsula
8% South
Australia
13%
6.9
6.0
mln tonnes
P&P Reserves by Geography
6
4
South
Africa
17%
3.0
1.8
2
Polar
Division
53%
Australia
19%
1.1
0
Vale
Source:
Polar
Division
47%
Norilsk
Nickel
Companies reports
Source:
Note
Xstrata**
SMM
BHP
Billiton
Africa
10%
Kola
Peninsula
23%
Norilsk Nickel calculations, companies’ reports, data from 2012
Data for Norilsk Nickel Group includes 4.5 mln tonnes of nickel attributable to Polar Division
Proven and Probable Reserves and additional Measured, Indicated and Inferred resources are stated on 100% consolidated basis
*Peer group dating back to 2012
**Xstrata figure dates back to 2011
Botswana
9%
3
The Lowest Cash Cost Producer
Norilsk Nickel benefits from a favourable cost position among large Nickel producers
 The only large Nickel producer with negative cash cost: costs are more than recovered through the sale of other metals produced
 -US$ 3.17 cash cost per lb of Nickel produced
 Vertical integration, rationalisation of existing assets, and selective development projects will contribute to maintain its position
Cost Curve: Major Nickel Producers
8
Ni Price: 14,830$/tonne ($6.7/lb)
6
Cash Cost $/lb
4
2
0
MMC Norilsk Nickel
Western Areas NL
Cunico Resources N.V.
Eramet SA
-2
Vale S.A
BHP Billiton Limited
Cubaniquel
Glencore International AG
Xstrata plc
Anglo American plc
First Quantum Minerals Ltd
Jinchuan Group Ltd.
PT Vale Indonesia
PT Aneka Tambang Tbk
-4
0
100
Source:
200
300
400
500
600
Production 000 tonnes
700
800
900
AME, LME (Cash seller and settlement price 15/05/2013)
4
Solid Financial Position vs. Peers
Strong financial performance compared to largest global diversified miners
EBITDA Margin*
BHP
Billiton
42%
Norilsk
Nickel
41%
Vale
37%
Rio Tinto
31%
Anglo
America
n
27%
Xstrata
26%
Source:
Note:
Net Leverage Ratio
Interest Coverage
BHP
Billiton
35,5x
Rio Tinto
23,0x
BHP
Billiton
Norilsk
Nickel
Norilsk
Nickel
20.8x
Anglo
American
Xstrata
20,5x
Rio Tinto
Vale
Anglo
American
14,1x
9,6x
Companies’ 2012 annual reports
BHP Billiton financial year ended 30 June 2012
*Adjusted EBITDA for non-current or exceptional items
Interest coverage is evaluated as a ratio of company/Group’s adjusted EBITDA to interest expenses
Net leverage ratio is evaluated as a ratio of company/Group’s net indebtedness to adjusted EBITDA
Vale
Xstrata
0,7x
0.8x
1,0x
1,2x
1,5x
1,9x
5
Norilsk Nickel’s Shareholders Return1
Indexed Share Price Dynamic
%
190
170
150
130
110
90
70
50
Dec-09
Mar-10
Jun-10
Sep-10
Dec-10
Mar-11
Norilsk Nickel
Jun-11
Nickel Peers
Sep-11
Dec-11
Mar-12
Jun-12
Sep-12
Diversified Mining Peers
TSR1 2009 – 2012
50
30
48%
40%
18%
10
(10)
(30)
(50)
(70)
(90)
11%
15%
9%
Average: -1%
11%
(0)
(27%)
(17%)
Average: -17%
(37%)
(27%)
(51%)
(77%)
%
(1) Total Shareholder Return includes (i) share price appreciation and (ii) cash dividends reinvested in security. Share buybacks are accounted for implicitly in share price appreciation.
Norilsk Nickel – Market Positions by Production in 2012
Norilsk Nickel is world leader in nickel and palladium production with strong positions in
platinum, copper, cobalt and rhodium
100% = 1,760 kt
Nickel
100% = 6,653 koz
Palladium
100% = 6,081 koz
Platinum
3000
17%
300
39%
41%
3000
13%
2000
2000
200
7%
24%
21%
6%
15%
6%
100
4%
1000
1000
6%
5%
0
0
Copper
2000
100% = 16,720 kt
3%
100% = 703 koz
Rhodium
10% 10%
Cobalt 1
200
5%
4% 4%
2%
100
100% = 37,520 kt
13%
44%
6%
2%
0
300
1000
12% 11%
4%
4000
7% 7%
29%
14%
6%
6% 6%
6%
2000
13%
4%
0
0
0
7
Source:
GFMS, Brook Hunt, CRU, companies’ results announcements, Norilsk Nickel Marketing Department, estimates from company reports
Notes:
1 Cobalt metal
Production Update & 2013 Outlook
Nickel, ‘000 tonnes
297
295
Copper, ‘000 tonnes
300
275 - 285
14
364
11
360 - 366
5-6
237
234
230 –
235
366
363
352
355 –
360
2011
2012
2013F
2010
2 011
2 012
2013F
236
2010
2,806
139
102
2,722
2,704
2010
23
45 - 50
58
Platinum, ‘000 ounces
Palladium, ‘000 ounces
233
378
67
62
2,861
389
2 011
Source: Company data
2,731
2,625 – 2,640
103
25 - 30
2,628
2 012
2,600 –
2,610
2013F
693
695
683
655 - 670
30
24
23
15 - 20
663
671
660
640 –
650
2010
2 011
2 012
2013F
Russian operations
Norilsk Nickel International
Norilsk Nickel production outlook for 2013
8
Metal Markets
Nickel Market in 2012 and Outlook for 2013-2014
Nickel supply and consumption, ‘000 t
1,761
1,433
1,501
1,617 1,614
Key potential drivers of Nickel market in 2013-2014:
1,844
1,680
1,769
 Price upside risk:
- Expected cuts of production, primarily NPI: at current prices
around 40% of all nickel producers are below the water
- Expected growth of high-quality nickel usage by 6% in
2013, mainly driven by +10% in stainless steel production
- Appreciation of RMB against US Dollar and rising costs for
energy, labor and transport to push high cost operations of
NPI to $9-12/lb in the medium term
2010
2011
Production
2012
Consumption
2013E
Nickel prices cut deep into cost curve
- Indonesia’s taxes on raw materials exports and introduction
of export ban starting from 2014
- Continuing growth in global consumption from non-stainless
steel applications, namely non-ferrous alloys in aerospace
sector
C1 cash costs + royalty + sustaining
capital ($/t Ni)
- Strong track record of persistent delays and technical
failures for new laterite HPAL projects and depleting
sulphide deposits worldwide
 Price downside risk:
- deterioration of macroeconomic environment
- potential additions of new NPI capacities in China in the
next 1-2 years with lower operating costs
Cumulative production (kt Ni)
- ramp-up of non-Chinese new big projects
Source: Company’s estimates, Wood Mackenzie April Report
10
NPI: Key Swinging Factor in Nickel Market Equation
 NPI emerged as response to nickel price escalation in mid-
NPI costs forward trends
2000s and is currently produced and consumed by China
only
 NPI is high cost production due to significant energy
intensity of process and transportation costs for ore
sourced from Philippines and Indonesia and costs are
expected to upward
 Key components of cash costs for BF – coking coal (58%),
ore (15%), transportation (13%), for EAF – power (30%),
ore (26%), coking coal (20%) and transportation (17%), for
RKEF – power, ore, transportation (30% each)
Source: Macquarie Capital
Source: Macquarie Capital
NPI production
 Majority of NPI producers’ break even costs range from
320
$17,000/t up to $20,000/t, but RKEF costs are ~$15,500/t
335
270
 Brook Hunt estimates that at price level $18.3k/t Ni,
production of 110kt of Ni in form of NPI is uneconomic and
168
cash burning
 Announced export taxes (25% in 2012, 50% in 2013) to be
followed with export ban on nickel ore from Indonesia in
2014 (53% of Chinese ore import in 2011) provide efficient
long-term floor to nickel price
2010
2011
2012E
2013F
Source: Company estimates
Source: Brook Hunt, VTB Capital, Macquarie Capital
11
Palladium Market Balance
 As of May 2013 no major supplies on the market from
Russian state palladium reserves
Global supply & demand balance
 -11% decline in Pd supply in 2012 due to South African
unrests and mines put on care & maintenance
 +7% growth in demand for autocatalysts mainly due to
North American and Chinese vehicle production increase in
2012
 In recent years, supply was absorbed by strong emergence
of investment demand. Net investments in 2012 resulted in
430koz. In recent 6 months Pd ETFs are up by 21%.
 In the long run, consumption growth rate should continue to
exceed production growth rate and move palladium market
into sustained deficit
mln oz
Millions
ETF Pd holdings
Palladium consumption by industry & regions
2,500
Autocats
67%
2,000
1,500
Other
1%
Investment
6%
1,000
Other
18%
China
16%
0,500
Apr-07
Apr-08
Other funds
Apr-09
Apr-10
Deutsche Bank
Apr-11
Julius Baer
Apr-12
ZKB
Apr-13
ETF Securities
Electrical
15%
North
America
24%
EU
23%
Dental
6%
Chemical
5%
Japan
19%
Source: Johnson Matthew, Renaissance Capital, Deutsche Bank, HSBC, Macquarie research, VTB capital, Bloomberg, Reuters
12
Palladium Demand: Consumption
Palladium consumption is projected to grow driven by the auto
industry (67% of gross palladium demand):
Car sales are holding up well…
 continuing growth of palladium demand in autocats as
EM and US car markets have favorable outlook
 China revives subsidies to buyers of small vehicles
boosting its auto sector
 full implementation of Euro-V in light duty vehicles
 return to normal mode of operation by Japanese car
industry post devastating earthquake in March 2011
 end-user demand should continue to grow strongly over
the medium term due to tighter emissions regulations
 growth of car market in China, mostly represented by
gasoline-powered vehicles whose catalysts tend to be
more palladium intensive (70% of all light vehicles
production globally)
… and car ownership in China is yet to catch up
Car ownership per 1,000 people
(units)
 continued growth of palladium content in diesel and
heavy trucks engines
Source: Norilsk Nickel Marketing Department, VTB Capital Research, Reuters
13
Copper Market
Rising Supply and Uncertain Demand
 Supply surpassed demand by some 1% in 2012, due to
new capacities and weaker physical demand
 Overall new capacities and ongoing projects may
accelerate supply growth (2.3% increase in refined
supply and a 3.6% growth in concentrate supply in
2012)
 As regards consumption growth, China remains
structurally the key driver, while:
 IMF sees Chinese growth averaging 8.5% p/y in 20142017
 Rising
government spending on infrastructure may
support consumption in economic hard landing
 Overall consumption of copper may remain uncertain in
the short to medium term given economic uncertainties
in western and large emerging markets
 In this context, a decrease in capacities surplus and
price tendency will depend on the resilience of demand
in weakened economies
Copper Price Evolution (USD/t)
$11,000
$10,000
$9,000
$8,000
$7,000
$6,000
$5,000
$4,000
$3,000
$2,000
Jan 07
Jan 08
Jan 09
Jan 10
Jan 11
Jan 12
Copper Consumption in 2012
Consumer
goods
9%
Machinery
13%
Electronics
34%
20.2 mt
Transport
13%
Construction
31%
Source:
Norilsk Nickel
14
FY 2012 Financial Update
Revenue and EBITDA Dynamics
Revenue
 Revenue decreased by 15% in 2012 y-o-y due
14,122
12,775
825
649
12,065
to decrease in market prices of base and
1,004
precious metals produced by the Group:
8,542
$ mln
467
12,126
13,297
11,061
8,075
2009
2010
Metal sales
2011
2012

Average Ni LME price down by 23%

Average Cu LME price down by 10%

Average Pd LPPM price down by 12%

Average Pt LPPM price down by 10%
Other sales
EBITDA & EBITDA margin
7,209
 Metals sales volumes remained almost
7,239
80%
7 000
70%
5 000
4 000
$ mln
6 000
51%
4,198
56%
4,932
41%
49%
60%

Ni sales went up by 1%
50%

Cu sales decreased by 3%
40%

Pt & Pd physical volume of sales
decreased by 1% due to lower metal
output
3 000
30%
2 000
20%
1 000
10%
-
unchanged y-o-y:
 EBITDA amounted to $4.9 billion with a healthy
0%
2009
2010
2011
2012
margin of 41%
Source: Company data
16
EBITDA Analysis

Adjusted EBITDA decreased by 32% y-o-y mostly due to substantial decrease in metal prices

Adjusted EBITDA margin remained at healthy 41%

Cost of metal sales increased by 2% y-o-y mostly due to:


increasing expenses on consumables and spares
growth of 3rd parties services

Expenses on acquisition of raw materials and semis decreased by 23% y-o-y amounting to $918 mln

Depreciation & amortisation charge amounted to US$789 mln (+4% y-o-y)
Adjusted EBITDA bridge, $ mln
8000
7,239
7000
6000
179
5000
(2,236)
134
(195)
(157)
Cost of metal
sales
Cost of other
sales
4,932
28
(64)
4000
3000
2000
1000
0
EBITDA 2011
Metal sales
Other sales
SG&A expenses
D&A
Other
EBITDA 2012
Source: Company data
17
2012 Cash Costs Breakdown

Cash costs before by-product credits remained flat at
$5 billion y-o-y as a result of cost control measures,
Consumables &
Spares
$1,309 mln
lower expenses on raw materials and rouble
26%
depreciation against US dollar

Acquisition of raw
materials & semis
$918 mln
Labour costs slightly increased by $ 24 mln (2%) y-oy driven mainly by inflation-related adjustments for
salaries and wages

Labor
$1,488 mln
18%
$ 5,040 mln
Consumables and spares are up by 13% y-o-y
($ 152 mln) due to increased purchases for repairs
and maintenance and relaunch of operations at Lake
30%
Johnston

Acquisition of raw materials & semis decreased by
23% y-o-y and amounted to $918 mln due to
decrease in volumes and LME prices for metals

13%
Cash costs of Russian operations and Harjavalta
Other
$109 mln
2%
3%
5%
4%
3d parties services
$651 mln
Transportation
Utilities
Taxes
$156 mln
$216
mln
$193 mln
continue to dominate in the cost structure accounting
for 94%
Source: Company data
18
Debt & Liquidity Position

As of YE 2012 total debt amounted to US$ 5 bn with a US$ 1
The Highest Rating Among Peers
bn cash pile

Balanced debt portfolio comprising both bank and capital
market instruments

Strong liquidity reserve formed of available cash & cash
equivalents and bank lines

Comfortable Net debt/EBITDA remains below 1x
Baa2
Cash & debt dynamics, US$ mln
5,405
5,317
Ba category
Debt structure, US$ mln
5,317
5,141
5,141
5,023
2,400
2,497
2,741
2,526
2011
2012
5,023
3,986
3,632
Baa3
3,514
2,345
2,797
2,797
1,685
1,561
1,627
1,037
2,972
1,236
2009
2010
2011
2012
2009
2010
LT debt
(2,608)
Total debt
Net debt
Source:
ST debt
Cash & cash equivalents
Company data
19
CAPEX
 CAPEX amounted to $2.7 billion in 2012
Hefty CF Generation
 Investments in mineral resource base of Polar
Division and Kola MMC:
5,514
4,702
3,434
3,401
— mining of new sections of ore bodies;
— increase of ore production;
2009
(1,061)
2010
2011
(1,728)
(2,201)
(2,713)
САРЕХ
OCF
— replenishment of retired facilities; and
2012
2012 CAPEX Breakdown
— implementation of new mining technologies
 Modernisation and upgrading of enrichment and
Other
investments
$374 mln
Intern. assets
$37 mln
14%
smelting facilities of Polar Division and Kola MMC
Mineral
resource
base
$558 mln
1%
21%
 Lowering of environmental footprint through cutting
emissions
 Securing reliable energy and gas supplies
Expenses on
replacement
of equipment
$771 mln
28%
2%
6%
$ 2,713 mln
6%
7%
15%
Non-industrial
facilities
$394 mln
Enrichment
$48 mln
Metallurgy
$172 mln
Utilities
$172 mln
Auxiliary
facilities
$186 mln
Russian Operations: Investments in Production
Ore extraction
$558 mln

Enrichment
$48 mln
$490 mln – key mines of Polar

>$36 mln – expansion of
Division
Talnakh enrichment plant;

$40 mln – Chita design project
tailings storages and other

$28 mln – Kola MMC
projects of Polar Divison
Smelting
$172 mln

$115 mln – upgrading Nadezhda
Metallurgical Plant

(construction of Severny-Gluboky
$24 mln – modernisation of
production lines to reduce SO2
emissions
mine, etc)
Replacement of
equipment
$771 mln
 $230 mln – non-core
subsidiaries
Non-Industrial
Construction
$394 mln
 Construction of nonindustrial assets, health
 $442 mln – Polar Division
and recreational facilities,
 $99 mln – Kola MMC
social programmes
Energy and auxiliary
facilities
$358 mln
Geological exploration,
IT, R&D etc.
$119 mln
 $158 mln – development
 >$84 mln – geological
of Pelyatka gas field
prospecting in Polar
 $131 mln – construction
of railroad for Chita
project
Division & Zabaikalsk
region
 >$30 mln – IT projects of
Polar Division and Kola
MMC
Source: Company data
21
Strategic Priorities for 2013
Strategic Priorities
Rebalanced value-centered group strategy in place by the end of 2013
Reinforcement of
Management Team

Throughout the organisation - adding highly experienced professionals to improve in key
competence areas and create a globally competitive team
Sharper Investment /
Project Management

Reassessment of investment portfolio and project assessment / management practices

Balanced investment policy with the selective stage-gate approach to each project
Rationalisation of
Non-performing /
Non-core assets

Extraction of capital from non-core businesses and assets

Business-minded approach to retained assets
OPEX Savings

Ongoing work, first results expected in 6 months
Tighter Working
Capital Management

Ongoing work, first results expected in 6 months
Greater Transparency  New management reporting system and IT initiatives
and Accountability
 Performance- and efficiency-centered culture
Enhanced Corporate
Governance
Sustainability
Management

Key new appointments to the Board and Committees, including independent Chairman

Taking the dialogue with investors to a new level

Sharpened, KPI-driven approach to environmental and social programs
23
Focus on the Environmental Programmes
Performance indicators for last 5 years*
Compliance with Environmental Standards

Reduction of pollutant emissions with priority to sulphur
dioxide and solid particles

Reduction of polluted wastewater discharges

Arrangement of waste disposal sites

Prevention of pollution from cargo shipping
-21%
Wastewater discharge
-17%
Pollutants discharged with
wastewaters
-15%
-3%
Overall waste generation
Air pollutant emissions
* Data is represented for 2007 – 2011
Environmental expenditures
Focus on Sulphur Dioxide Reduction

Maximising
sulphur
recovery
by
renovation
of
2007 – 2012: $3,010 mln
modern technologies

Minimising the sources of sulphur containing gas by
replacing obsolete process

$ mln
concentration capacities including implementation of
600
620
2011
2012
530
470
430
360
Total investments aimed at reducing sulphur dioxide
emission will be approx. USD 2.5bn through 2018
2007
2008
2009
2010
24
Enhanced Governance and Shareholder Consensus
“The settlement of a dispute between major shareholders should provide the company with a solid
platform for further improvement of strategic, operational and corporate governance issues”
Gareth Penny , Chairman of the new Board of Directors
 The new elected Board of Directors includes 4 independent non executive directors out of 13 members, including the
Chairman of the Board
 Several changes in the Management Board including the CEO and the CFO
 Shareholders agree not to take any action with respect to specified fundamental matters without the agreement of each of
them
Composition of the Board
Other
1
INEDs
4
Governance Structure
General Meeting of
Shareholders
Interros
4
Audit Committee
Strategy
Committee
Corporate Governance,
Remuneration and
Nomination Committee
Budget
Committee
Board of Directors
13
members
Management Board
UC
RUSAL
4
General Director
(CEO)
25
A New Shareholder Structure
From December 2012, Interros and UC Rusal have a signed agreement with Crispian Investment Limited
Key Takeaways

Crispian is to become a new significant shareholder of Norilsk Nickel by purchasing shares from Interros
and UC Rusal

Following redemption of all quasi-treasury shares (held by Norilsk Nickel), UC Rusal, Interros and Crispian
will hold approximately 27.8%, 30.3% and 5.87% shares respectively

Embedded mechanism limiting the risk of shareholder conflicts1

Guidelines for future dividend distribution
Before the Agreement
Post-Agreement and Cancellation of Treasuries
Other
5%
Interros
28%
Treasury
Shares
17%
Crispian
6%
Other
6%
Interros
30%
Free float
30%
Free float
25%
UC Rusal
25%
UC
RUSAL
28%
1
Crispian Investment Limited - an affiliate of Mr. Roman A. Abramovitch - would exercise certain voting rights in respect of shares held by each Interros and
Rusal. It was agreed that the maximum number of shares would represent 7.5% of the Company issued share capital for each of Interos and RUSAL.
26
Sustainable Development
Sustainability and Effective CSR Governance
Rational water
resource use
CSR
Governance
Stakeholders
engagement
Managing
land and
enhancing
biodiversity
Keeping our
staff safe
and healthy
Employing,
developing and
motivating
staff
Human
rights and
social
partnership
28
Working For Benefit Of The Country
Being a significant player in Russian economy

A significant tax-payer: aggregate tax payments in 2011
amounted ca $3.4 bn

A big employer: over 81,000 people work in Norilsk Nickel
(96% in Russia). A major employer offering well-paid jobs
for Norilsk, Monchegorsk, Zapolyarny and Nickel with the
aggregate population over 285,000 people

An owner and developer of infrastructural assets
across the country: Arctic fleet, airlines, railroads

A strategic partner of the Russian Federation in full scale
projects of economic, social and environmental nature
Company tax payments to region budgets, 2011
$1.5 bn
1%
2%
3%
7%
in Russia’s GDP
of Russia’s export
of Russia’s industrial production
in Russia’s non-ferrous metals
industry
Total tax payments, 2009-2011
> $0.3 bn
3.4
>30%
2.7
$ bn
>30%
The Company’s share
1.2
Krasnoyarsk region
Murmansk region
2009
2010
2011
29
Tackling The Key Challenge Of SO2 Emissions
In Polar Division implements a system of measures aimed at
SO2 emissions at Polar Division
reduction of SO2 emissions to Maximum Permissible Emissions
2,011
2004 – 2011: - 5%
which includes:
Concentrator in order to maximize sulphur percentage in
final tailings without losses of valuable metals

1,955
Development of the concentration facilities of the Talnakh
1,939
1,950
1,920
‘000 t

1,917
1,912
1,881
Modernization of pyrometallurgical processing facilities of
the Nadezhda Metallurgical Plant and shutdown of the main
facilities of the Nickel Plant situated in the immediate vicinity
of the residential areas being a source of weak sulfureous
2004
2005
2006
2007
2008
2009
2010
2011
gas which is difficult to recycle

In June 2012, MMC Norilsk Nickel signed contract with
Techint S.p.A (Italy) to develop design documentation with
simultaneous specification of technical parameters at pilot
facilities and consequent construction of sulphur recycling
and storage facilities with a total capacity of up to 950
thousand tons per annum. The total amount of CapEx for
the project is USD1.7 bn
30
Corporate Social Programmes for Personnel
Budget of social programmes exceeds $176 mln
Annual compensation
of travel and baggage
expenses (>$85 mln)
Corporate sport events
($1.4 mln)
Vacation at health
resorts ($54.5 mln)
Corporate housing
programmes
Non-governmental
pension programmes
($27.2 mln)
Mass cultural events
and festivals,
international
corporate tourism
($10.2 mln)
* Data is represented for 2011
31
IR Contact Details
Mikhail Borovikov
Investor Relations Officer
Elena Romanova
Investor Relations
Vera Timoshenko
Investor Relations
Tel: +7 495 786 83 20
Fax: +7 495 797 86 13
e-mail borovikovma@nornik.ru, romanovaev@nornik.ru, timoshenkovv@nornik.ru, ir@nornik.ru
11, Bolshaya Tatarskaya,
Moscow, Russia, 115184
32