Statement of the President and Chairman of the Management Board

Dear shareholders, investors, consumers, and colleagues,

It is a great pleasure for me to present Nornickel’s 2019 Sustainability Report.

Last autumn, our management team shared Nornickel’s revised strategic vision until 2030 with the investor community. The document titled «Expanding the Horizons of Sustainable Growth» outlines several key areas, including a comprehensive environmental programme, growth of the core business, upgrade of the processing facilities, and personnel and infrastructure development in the regions where the Company operates.

We take a responsible approach to environmental protection. The comprehensive environmental programme is set to reduce sulphur dioxide emissions tenfold by 2025^*. To this end, Nornickel started to roll out solutions capturing harmful emissions on a par with the best available technologies globally. The updated Sulphur Programme also includes the upgrade of existing nickel and copper smelting facilities. Investments are already underway in the Norilsk Industrial District and on the Kola Peninsula.

Assessment of the climate change impact on the Company’s operations is also an important focus area of our sustainable development. It stands to note that our metals are widely used in solutions mitigating the negative climate impact of key emission sources around the world.

The comprehensive environmental programme supports sustainable growth of our core business and development of our unique resource base in the Norilsk Industrial District, Chita Region, and on the Kola Peninsula. By 2030, the Company plans to ramp up ore mining by more than 2.5 times compared to 2017. To facilitate ore processing and metal production, the Company will modernise and build concentration, smelting, and refining facilities. We invest in infrastructure projects that supply resources to our core business, including projects to develop our energy and gas assets.

Today, Nornickel is one of the most profitable companies among major global diversified mining groups. We actively introduce digital technologies of process control and best management practices across the value chain. 2019’s strong performance and our distinct competitive edge have helped to strengthen the Company’s robust position in the market and secure our continued investment in sustainable development.

Having joined the UN Global Compact three years ago, we remain fully committed to its Ten Principles regarding human rights, labour standards, the environment and anti-corruption.

As in previous years, in 2019 we made significant progress in developing our human capital, which is our key asset. Similar to other business areas, our focus is on boosting the efficiency of our personnel, while also improving engagement and enhancing our corporate culture.

Alongside all these efforts, Nornickel has maintained a high level of employee social support. The Company has increased reimbursements for the cost of round trips to and from the place of vacation, health resort treatments and healthcare, reinforcing its position as one of the industry’s most attractive employers. Wages and salaries, which the Company always pays on time and indexes on an annual basis, remain among the highest industry-wide and average over RUB 110,000.

It goes without saying that health and safety is also a top priority for Nornickel. It is our commitment to work unstintingly to ensure that all our workplaces are safe. The Company management views occupational safety excellence and zero injuries as key strategic objectives and runs dedicated health and safety programmes to make sure we achieve them.

Today, Nornickel is one of the most profitable companies among major global diversified mining groups 2019’s strong performance, coupled with current macroeconomic trends has helped to strengthen the Company’s robust position in the market and secure our continued investment in sustainable development.

We can say outright: we take pride in our Company. Nornickel has always kept pace with change, and the projects initiated in the last decade will place us on a par with the industry’s global tech leaders