Moscow, August 20, 2019 — PJSC MMC Norilsk Nickel, the largest refined nickel and palladium producer in the world, reports IFRS financial results for six months ended June 30, 2019.

1H2019 HIGHLIGHTS

Consolidated revenue increased 8% y-o-y to USD 6.3 billion owing to output growth of all key metals and higher palladium price;
EBITDA expanded 21% y-o-y to USD 3.7 billion owing to higher metal revenue and the ramp-up of the Bystrinsky copper project, with EBITDA margin reaching 59%;
CAPEX was almost unchanged from last year amounting to USD 0.5 billion. The Company made final investment decisions on strategic growth projects such as the expansion of the Talnakh concentrator (TOF-3 project) and the South Cluster mining project, with the active construction phase scheduled to start in 2H19;
Net working capital temporarily increased to USD 1.3 billion as a result of scheduled amortization of advance payments for delivered metals from customers;
Free cash flow amounted to USD 2.2 billion;
Net debt/EBITDA ratio decreased to 0.8x as of June 30, 2019;
Cash interest paid decreased 23% to USD 202 million owing to the ongoing optimization of debt portfolio;
On February 12, 2019, Moody’s upgraded the Company’s credit rating to “Baa2” with a “Stable” outlook in the wake of raising Russia’s sovereign ceiling for foreign currency debt to “Baa2” and upgrade of Russia’s sovereign rating to investment grade level of “Baa3” with “Stable” outlook.

RECENT DEVELOPMENTS

On July 1, 2019, the Company paid final dividend for 2018 in the amount of RUB 792.52 (approximately USD 12.56) per ordinary share for the total amount of approximately USD 2.0 billion;
On August 20, 2019, the Company’s Board of Directors recommended to the General Meeting of shareholders (EGM) to approve interim dividend for the first half of 2019 in the amount of RUB 883.93 per share (USD 13.27 at the RUB/USD exchange rate the Russian Central Bank as of August 20, 2019) for the total amount of USD 2.1 billion. The Board of Directors set the date of the EGM on September 26, 2019 and the EGM record (the list of shareholders eligible to vote) date on September 2, 2019. The Board of Directors proposed to set the dividend record date (the list of shareholders entitled to the dividend) on October 7, 2019.

Nornickel reports 1H2019 consolidated IFRS financial results