Nornickel Gmk · RUS:GMKN
Nornickel Gmk — Nornickel — H1 2021 Earnings Presentation
79 slides from Nornickel Gmk's earnings presentation, Aug 5, 2021
Slide 1: 1H 2021 Financial Results
1H 2021 Financial Results Moscow August 5th, 2021
Slide 2: Disclaimer
Disclaimer The information contained herein has been prepared using information available to PJSC MMC Norilsk Nickel (“Norilsk Nickel” or “Nornickel” 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
Slide 3: 1H 2021 Financial Performance Highlights
1H Financial Results Presentation 1H 2021 Financial Performance Highlights Revenue • Realized prices (Ni, Cu, Pd, Rh) FCF • Operating cash flow • Production volume (Pd, Rh) • Reimbursement of environmental $8.9 bn • Sale of Ni from stock $1.4 bn damages up 33% vs 1H 2020 • Temporary disruption of op
Slide 4: Sustainable Development Update
Sustainable Development Update
Slide 5: Health and Safety Update
1H 2021 Financial Results | Sustainable Development Update Health and Safety Update LTIFR: Increased in 1H’21 as Injuries Reporting Number of Fatal Accidents Unchanged Owing to the Improved Incident at Norilsk Concentrator in 1H’21 LTIFR per 200k Hours Employees Lost time injury Fatal -57% -54% 0.75
Slide 6: Health & Safety: Strong Performance Relative to Industry
1H 2021 Financial Results | Sustainable Development Update Health & Safety: Strong Performance Relative to Industry LTIFR Remains Below the Global Assessment of Occupational Safety Culture: Mining Industry Average Score Significantly Improved Since 2014 as of 2020 FY LTIFR per 200k Hours Bradley Cur
Slide 7: Environmental Program: Reduction of SO2 Emissions on Track
1H 2021 Financial Results | Operations and Strategy Update Environmental Program: Reduction of SO2 Emissions on Track Strategic target: achieve Polar Division: SO2 Emissions Practically Unchanged industry-leading SO2 in 2020, Sulphur Programme in Active Construction Phase utilization rates SO2 Emiss
Slide 8: Sustainable Development Highlights
1H 2021 Financial Results | Sustainable Development Update Sustainable Development Highlights Environment Climate Change Corporate Governance • Environmental and Climate Change • Improvement of industrial safety: • New Sustainable Development Strategy approved by the Board, upgrade of fuel storage f
Slide 9: Social: a Leader in Social Investments in the Russian Industry
1H 2021 Financial Results | Sustainable Development Update Social: a Leader in Social Investments in the Russian Industry Response to Supporting Local Renovation of Norilsk Engagement with Coronavirus Communities Housing and Infrastructure Indigenous People • Support of regional • Construction of a
Slide 10: Selected New Environmental and Climate Change Targets for 2030
1H 2021 Financial Results | Sustainable Development Update Selected New Environmental and Climate Change Targets for 2030 • Maintain absolute Scope 1+2 • Dispose of 100% of waste from GHG emissions from operations new projects to environmentally safe at 10 Mt of CO2e in 2030 facilities, provided wit
Slide 11: HPP-3 Incident: Full Environmental Remediation in Progress
1H 2021 Financial Results | Sustainable Development Update HPP-3 Incident: Full Environmental Remediation in Progress 2020: Completion of Phases 1&2 2021+: Phase 4 (rehabilitation) (clean-up) and Phase 3 (transportation in progress and utilization of contaminated materials) • Over 90% of leaked fuel
Slide 12: Comprehensive Physical Risk Mitigation Programme – Energy Infrastructure
1H 2021 Financial Results | Sustainable Development Update Comprehensive Physical Risk Mitigation Programme – Energy Infrastructure • Ad-hoc audit of all industrial buildings and facilities (in progress), with a prime focus on fuel storage (completed) Reassessment • Inspection of technological fuel
Slide 13: Roll-Out of Online Permafrost-Based Foundations Monitoring in Norilsk
1H 2021 Financial Results | Sustainable Development Update Roll-Out of Online Permafrost-Based Foundations Monitoring in Norilsk in Progress • The Monitoring Center of Buildings and Structures of Norilsk Division, which carries geotechnical monitoring and technical inspections, has been upgraded, st
Slide 14: Major Legacy Waste Collection Programme Launched in Norilsk Area
1H 2021 Financial Results | Sustainable Development Update Major Legacy Waste Collection Programme Launched in Norilsk Area Before The first phase of a major clean-up of legacy industrial and construction waste in Norilsk area launched • A dedicated Department, Work with Territories and Landscaping,
Slide 15: Climate Change Strategy
1H 2021 Financial Results | Sustainable Development Update Climate Change Strategy Climate change 2030 targets Key actions 2021+ Maintain absolute Scope 1+2 Maintain Scope 1&2 GHG emissions GHG emissions from operations(1) per t of Ni-equivalent in the bottom • Develop and launch monitoring system o
Slide 16: Competitive Position of NN in Terms of Greenhouse Gas Emissions
1H 2021 Financial Results | Sustainable Development Update Competitive Position of NN in Terms of Greenhouse Gas Emissions: Significantly Lower than Global Competitors Greenhouse Gas Emissions Scope 1&2 (CO2e)(1) mt CO2e 31.5 24.3 Industry average 15.8 16.1 50% 9.7 10.6 Nornickel Peer 1 Peer 2 Peer
Slide 17: One of the Nickel Industry Lowest CO2 Emissions Intensity
1H 2021 Financial Results | Sustainable Development Update One of the Nickel Industry Lowest CO2 Emissions Intensity Nornickel’s CO2 Nickel Emissions (per tonne of Ni-eq.) • Combined leadership of Nornickel on both cost and CO2 Emissions Intensity (t CO2e/t Ni-eq.) intensity curves to ensure unique
Slide 18: Corporate Governance: Adjusting Organizational Structure to Respond to New Challenges
1H 2021 Financial Results | Sustainable Development Update Corporate Governance: Adjusting Organizational Structure to Respond to New Challenges Sustainable Development and Board of Directors Increased focus on sustainable development and climate change Climate Change Committee Нeaded by the Chairma
Slide 19: Advancing Sustainable Development Agenda
1H 2021 Financial Results | Sustainable Development Update Advancing Sustainable Development Agenda Selected Improvements Near-term Objectives 2020-2021 • Prepare sustainable development strategies at the divisional level • Methodology for calculating Scope 3 and decompose Group strategic KPIs to ma
Slide 20: Participation in Selected International Sustainable Development Initiatives
1H 2021 Financial Results | Sustainable Development Update Participation in Selected International Sustainable Development Initiatives • ESG rating 48/100 as of April’21 • Compliance with GRI (global reporting • Signatory to UN Global Compact (vs.33/100 as of September’20) initiatives) and RSPP publ
Slide 21: Most Recent ESG Ratings
1H 2021 Financial Results | Sustainable Development Update Most Recent ESG Ratings Governance Environment Social B B B B B CCC 7 • ESG Risk Rating “High” Reiterated 3 3 4 3 3 • ESG Risk Rating(1) improved to 36.9/100 (from 38.3/100) 2016 2017 2018 2019 2020 Apr-21 June 2020 February 2021 • Exposure
Slide 22: Markets Update
Markets Update
Slide 23: Rapid Recovery of the Global Economy from the COVID-Related Depression
1H Financial Results| Markets Update Rapid Recovery of the Global Economy from the COVID-Related Depression Follows a V-shape and Supported by Monetary Policy Strong Rebound in All Largest Economies in 2021, …Supported by Low Interest Rates with Growth Rates Normalizing thereafter… and Injection of
Slide 24: Strong Recovery of Industrial Production Drives Metals Consumption
1H Financial Results| Markets Update Strong Recovery of Industrial Production Drives an Uneven Short-Term Rebound in Metals Consumption in 2021 Recovery of Industrial Production Led by Europe ….as Europe and USA Are the Largest Consumers and US Has Implications for Metals’ Demand… of PGMs, whereas C
Slide 25: Long-Term Decarbonisation Prospects Drive Short-term Sentiment
1H Financial Results| Markets Update Long-Term Decarbonisation Prospects Drive Heavily Up Short-term Sentiment towards Selected Commodities USA Europe Asia • Re-joined the Paris Agreement • CO2 target for a car industry – China 55% by 2030 and – • USD2 trillion potential 100% by 2035 vs. 2021 • Carb
Slide 26: Mixing Forecast Horizons: Mid-term Opportunities vs. Long-term Uncertainty
1H Financial Results| Markets Update Mixing Forecast Horizons: Mid-term Opportunities vs. Long-term Uncertainty Strong Mid-term Outlook for ICE-Equipped Vehicles vs Long-term Zero Emission Targets [Pd market balance, Moz] Risk of surplus emerging Deficit sustained 2021E ICE production Emission More
Slide 27: Metal Markets Outlook – View on Fundamentals
1H Financial Results| Markets Update Metal Markets Outlook – View on Fundamentals Metal Ni Cu Pd Pt 20% 18% 43% 4% Share of Nornickel metal sales 1H 2021 -85kt +140kt -0.3moz Other +0.5moz Non- elastic Global stocks, exchange days of consumption Non- Other Other exchange non-elastic Exchange(2) 28 3
Slide 28: Nickel Exchange Stocks Declined in 1H2021
1H Financial Results| Markets Update Nickel Exchange Stocks Declined in 1H2021 as the Market Temporarily Slipped into Deficit Exchange Inventories Declined Due to Increasing Nickel Exchange Inventories Demand and Temporary Market Deficit Are Still Above Normal Level [kt Ni] [Days of consumption] 92
Slide 29: Stainless Steel: Double Digit Growth Led by China and Indonesia
1H Financial Results| Markets Update Stainless Steel (70%+ of Global Ni Demand): Double Digit Growth Led by China and Indonesia China: Growth in 300s Driven by Stimulus 2021E: China and Indonesia Expected to Increase Package(1), Domestic STS Stocks Remain Flat 300s Output by 5 Mt, while Others – by
Slide 30: Batteries: Strong Rebound in Global NEV Sales in 2021YTD
1H Financial Results| Markets Update Batteries (10% of Global Ni Demand): Strong Rebound in Global NEV Sales in 2021YTD BEV Equivalent Sales(1) in 6M 2021 Increased Battery Materials Production in China: LFP almost 3x Globally, China Up 3.5x (no Ni/Co) Surged 3x, while NCM Increased 2x Other [000 un
Slide 31: Nickel Production: >500kt Addition in LG High Carbon Footprint Supply
1H Financial Results| Markets Update Nickel Production: >500kt Addition in LG High Carbon Footprint Supply, but Little in HG Low CO2 in 2021-2022 High-Grade Ni Supply in 2021 Negatively Impacted by One-off Production Losses at Nornickel +1% +14% [kt Ni] 1,132 • 2021E: Nornickel production declining
Slide 32: Nickel Market: 2021 Deficit is Short-Lived, Surplus to Return in 2022
1H Financial Results| Markets Update Nickel Market: 2021 Deficit is Short-Lived, Surplus to Return in 2022 Market Balance: Temporary Deficit Due to Global Demand: Double-Digit Growth Driven by Production Losses and Post-Covid Demand Recovery Stainless Steel and Batteries to Sustain in 2022 [kt Ni] [
Slide 33: Very Strong Long-Term Nickel Demand Outlook
1H Financial Results| Markets Update Very Strong Long-Term Nickel Demand Outlook Global Decarbonisation Targets Suggest Expansion of Nickel-Intensive Battery Cathode a Substantial Increase in Nickel Consumption Chemistries and Governments’ Electrification Targets Drive LT Outlook for Ni Demand in Ba
Slide 34: Long-Term Nickel Supply Challenge: Low Grade / High Carbon Footprint
1H Financial Results| Markets Update Long-Term Nickel Supply Challenge: Low Grade / High Carbon Footprint Over 0.6Mt of High Carbon / Low Grade Nornickel's CO2 Footprint for Nickel is 9 Times NPI to Be Added in Indonesia in 2021-2025 Lower Than CO2 Emissions of Indonesian NPI [mt Ni] +16% +16% Norni
Slide 35: Copper: A Largely Balanced Market with a Temporary Deficit in 2021
1H Financial Results| Markets Update Copper: A Largely Balanced Market with a Temporary Deficit in 2021 Copper Consumption is Expected to Grow Steadily Market Balance: Marginal Deficit at 3% in 2021 and 2022 in 2021 is Temporary Owing to Supply [mt] +3% +3% Lagging behind Demand Recovery 0.1 0.3 24.
Slide 36: Global Autos Sales Recovering Strongly in 2021
1H Financial Results| Markets Update Global Autos (83% of Global Pd and 38% Pt Demand) Sales Recovering Strongly in 2021 to Pre-COVID Levels Global Auto Sales up 32% in 6M 2021(1) : Global Automotive Production Outlook: Mostly Back to the Pre-Covid 2019 Levels Recovery to Pre-Covid Volumes Expected
Slide 37: Investment Demand: Minor Increases of PGM ETF Holdings
1H Financial Results| Markets Update Investment Demand (1% of Global Pd and 8% of Pt Demand in 2021YTD) – Minor Increases of PGM ETF Holdings Palladium ETF Holdings increased by 54koz Platinum ETF Holdings increased by 125koz in 1H2021 on the Back of Growing Prices in 1H2021 Supported by Stronger In
Slide 38: Palladium Market Remains in a Structural Deficit in the Mid-Term
1H Financial Results| Markets Update Palladium Market Remains in a Structural Deficit in the Mid-Term Demand Growth is Primarily Driven Wider Market Deficit in 2021 due by the Automotive Market Recovery to One-off Supply Events [mt] [y-o-y,%] [moz] +14% +15% 1.2 0.1 10.9 11.4 (0.4) (0.3) 9.6 (0.6) (
Slide 39: Major Platinum Surpluses Only Partially Mitigated by Reviving Investment Demand
1H Financial Results| Markets Update Major Platinum Surpluses Only Partially Mitigated by Reviving Investment Demand Higher Vehicles Sales, HDD Loadings in China Wider Market Deficit in 2021 due and Jewellery Demand Recovery in 2021 to One-off Supply Events [mt] [y-o-y,%] [moz] +11% +3% 1.1 1.0 0.5
Slide 40: Fleet Electrification Targets Still Imply Active Hybridization in Mid-Term
1H Financial Results| Markets Update Fleet Electrification Targets Still Imply Active Hybridization in Mid-Term Long Term Outlook for xEVs Improved Industry Expectations: Hybrids to Dominate Significantly in the LTM (xEVs mix, %) in the Electric Vehicles Mix in the Mid-Term [million units] [change i
Slide 41: Cars with ICE Outperform EV's in Purchase Price and Life Cycle Costs
1H Financial Results| Markets Update Cars with ICE Outperform EV’s Both in Terms of the Purchase Price and the Full Life Cycle Costs, So Far…(?) Comparison of Car Purchase Price with Comparison of Total Cost for the Entire Life Cycle ICE and EV in the USA and Europe of Car with ICE and EV in the USA
Slide 42: Long-term Autos Outlook: ICE Will Dominate Autos' Mix
1H Financial Results| Markets Update Long-term Autos Outlook: Cars with Internal Combustion Engines Will Dominate Autos’ Mix for at Least Another Decade ICEs Including Hybrids to Remain A Wide Range of Opinions Regarding By-and-large Flat Through 2027-2030, the Long-Term Prospects of BEVs (1) but PG
Slide 43: Global Decarbonisation – Risk Assessment for Nornickel's Metals
1H Financial Results| Markets Update Global Decarbonisation – Risk Assessment for Nornickel’s Metals Gasoline Diesel Hybrid BEV FCEV incl. PHEV CAGR1 +1% 0% +28% +38% +41% Market Share2 57% 11% 20% 12% <1% Stainless Steel & Parts +Batteries - Ni 2-4 kg 2-4 kg 5–15 kg 30–110 kg 2–3 kg Wires & Parts +
Slide 44: Global Decarbonisation – Risk Assessment for Nornickel's Metals
1H Financial Results| Markets Update Global Decarbonisation – Risk Assessment for Nornickel’s Metals Ni PGMs Cu Growth of market share of BEVs Growth of hybrids Fuel cells Growth of renewables/ low carbon fuel in power generation Storage and grid expansion to support growth of xEVs Net impact Source
Slide 45: A New Era in Metal Trade
1H Financial Results| Markets Update A New Era in Metal Trade Nornickel staged for the new era of digital transactions, which will optimize supply chain efficiency and transparency • Nornickel has joined the Responsible Sourcing Blockchain Network (RSBN), an industry collaboration among members acro
Slide 46: Financial Update
Financial Update
Slide 47: Metal Sales Volumes and Realized Prices
1H Financial Results Presentation| Financial Results Metal Sales Volumes and Realized Prices Base Metals Sales: Down due to Lower Production, PGM Sales: Palladium Up on Production and Nickel Partially Positively Offset by Sales from Stocks Sales from Stock Nickel Copper (1,3) Palladium (3) Platinum
Slide 48: Metals Revenue: Production Losses Offset by Higher Prices
1H Financial Results Presentation| Financial Results Metals Revenue: Negative Impact of Production Losses Have Been Well Offset by Higher Commodity Prices Nickel Revenue: Up 34% on Higher Prices and Sales Copper Revenue: Higher Prices Well Offset of Metal from Stocks Accumulated in 2020 Reduction of
Slide 49: Consolidated Metal Revenue
1H Financial Results Presentation| Financial Results Consolidated Metal Revenue Consolidated Metal Revenue Up on Higher Metals’ Geographical Breakdown of Sales: Prices and Sales Despite Production Losses Remained Practically Unchanged in 1H 2021 Macro Company performance (179) [USD mln] [% of USD sa
Slide 50: EBITDA and EBITDA Margin
1H Financial Results Presentation| Financial Results EBITDA and EBITDA Margin Changes in Semi-annual EBITDA and EBITDA Margin Realized metal prices [USD mln] (+USD2,331 mln) 8000 66% 64% 80% 7% depreciation of RUB against USD 59% 58% (+USD129 mln) 6000 60% EBITDA Domestic inflation of 4.2% (-USD66 m
Slide 51: Operating Cash Costs
1H Financial Results Presentation| Financial Results Operating Cash Costs Operating Cash Costs Increased 18% in 1H’21 Owing 1H 2021 Cash Costs Breakdown to Changes in Taxation and Production Losses Operating factors +191 [USD mln] Macro factors +146 Labour 15% 29% 252 2,224 183 Metals and semi-produ
Slide 52: Net Working Capital Changes in 1H 2021
1H Financial Results Presentation| Financial Results Net Working Capital Changes in 1H 2021 [USD mln] Operating factors +506 200 1,758 Macro factors +540 363 (57) 412 1,000 88 712 40 Factors of a one-off or a seasonal nature expected to be largely reversed in 2H 2021 31.12.2020 FOREX Seasonality Inc
Slide 53: Allocation of Capital Investments
1H Financial Results Presentation| Financial Results Allocation of Capital Investments CAPEX (1) Breakdown by Projects CAPEX (1) Allocation: Commercial and Stay-in-Business [USD mln] 990 [USD mln] 990 28 Talnakh Enrichment Plant (TOF-3) 222 Commercial 282 Envionmental program (Sulphur programme in 8
Slide 54: Financial Results Sensitivity to USD/RUB Exchange Rate
1H Financial Results Presentation| Financial Results Financial Results Sensitivity to USD/RUB Exchange Rate At USD/RUB rate of 72.4, 1% change in exchange OPEX Break Up by Currency (1) rate translates into EBITDA change of USD41.1 mln, 5% 9% FCF change of USD110.8 mln [USD mln] 140 133.6 1H 2020 1H
Slide 55: Free Cash Flow Decreased to USD 1.4bn
1H Financial Results Presentation| Financial Results Free Cash Flow Decreased to USD 1.4bn [USD mln] 2,679 (439) (390) 1,397 (1,968) 1,515 1H 2020 CAPEX Reimbursement of Cash from Income 1H 2021 environmental damages operations tax paid (1) Note: 1. Increase in income tax payments due to higher taxa
Slide 56: Balance Sheet Management
1H Financial Results Presentation| Financial Results Balance Sheet Management Leverage Maintained at below Mid-cycle Proactive Debt Management Level of 1.0x • In February 2021, at the scheduled call option date the RUB15 billion [USD bn] 2.1x exchange-traded ruble bonds with a coupon rate of 11.6 %
Slide 57: Finance Costs Reduced to Record Low Levels
1H Financial Results Presentation| Financial Results Finance Costs Reduced to Record Low Levels Gross Debt and Net Debt (1) Average Cost of Debt Reduced… [USD bn] average for the period • …by 2.3p.p. from the year-end 2016 by the end of 1H 2021 9.8 8.5 8.7 9.1 9.9 +21% • …well ahead of 0.7p.p. reduc
Slide 58: Impact of Changes in Taxation on Competitive Position
1H Financial Results Presentation| Financial Results Impact of Changes in Taxation on the Company’s Competitive Position Globally Royalties as % of Annual Revenue Recent Changes in Taxation: [%] 8.7% • 3.5x increase in Mineral Extraction Tax (MET) effective from 1 January 2021 4.7% 3.8% • Introducti
Slide 59: Operations and Strategy Update
Operations and Strategy Update
Slide 60: Recovery of Oktyabrsky and Taimyrsky Mines (1/2)
1H 2021 Financial Results | Operations and Strategy Update Recovery of Oktyabrsky and Taimyrsky Mines (1/2) Overview • On February 24th, the two underground mines of Norilsk Division: Oktyabrsky Mine (5 mtpa), which mines rich, cuprous and disseminated ores, and Taimyrsky Mine (4.3 mtpa), which mine
Slide 61: Recovery of Oktyabrsky and Taimyrsky Mines (2/2)
1H 2021 Financial Results | Operations and Strategy Update Recovery of Oktyabrsky and Taimyrsky Mines (2/2) Source: Company data 61
Slide 62: Recovery of Norilsk Concentrator (1/2)
1H 2021 Financial Results | Operations and Strategy Update Recovery of Norilsk Concentrator (1/2) Overview • Norilsk Concentrator (9.2 mtpa throughput in 2021E) includes disseminated ore (5.2 mtpa) and cuprous ore (4.0 mtpa) circuits, which process disseminated ore mined at the South Cluster and cup
Slide 63: Recovery of Norilsk Concentrator (2/2)
1H 2021 Financial Results | Operations and Strategy Update Recovery of Norilsk Concentrator (2/2) Source: Company data 63
Slide 64: Production Guidance for 2021-2023
1H 2021 Financial Results | Operations and Strategy Update Production Guidance for 2021-2023(1) Ni Pt+Pd Cu [kt] 215- [t] 100- [kt] 225 233 190- 225 113 110 Bystrinsky project 208 109 200 103 499 43 487 63 91-95 63-69 65-70 399 335- 380- 355 410 2016- 2019 2020 2021E 2022- 2016- 2019 2020 2021E 2022
Slide 65: Bystrinsky Update
Bystrinsky Update • One of the largest greenfield projects in the Russian mining industry (50.01% owned by Nornickel) • Ore reserves: 340.5 Mt @ Cu ~0.7%; Fe ~22.5%; Au ~0.87 g/t(1) • Reserve life – 34 years • Target capacity achieved in 2Q 2020 • 1H 2021 EBITDA: USD566 mn Operating Performance Outl
Slide 66: South Cluster Project
South Cluster Project • Large-scale, long life (25+ years) brownfield asset at the bottom of the global PGM cost curve • O/P and U/G operations leverage synergies from existing infrastructure • FS and detailed engineering completed • Tender procedures to select project contractors completed • Open-p
Slide 67: Upgrade of Talnakh Concentrator: Phase-3
Upgrade of Talnakh Concentrator: Phase-3 Project overview Capacity expansion to process additional ore production volumes (“South Cluster”) Project update • Concrete-steel construction works in progress • Tender procedures for long-lead equipment items • Tailing dam construction in progress • Capex:
Slide 68: Expansion of Nadezhda Smelter: New 3rd Furnace
Expansion of Nadezhda Smelter: New 3rd Furnace Project overview • Target: increase total throughput and provide a back-up capacity when either of two existing furnaces is shutdown for maintenance • Fits into the Nadezhda Smelter’s existing production site • New line to be fully integrated in Sulphur
Slide 69: New Copper Refinery
New Copper Refinery: Modern Environmentally- Friendly Technology Project overview • New copper refining hub based on a modern efficient technology of «roasting-leaching-electrowinning» at Kola Division • Fully environmentally compliant Project update Investment decision granted in June 2021 Project
Slide 70: Energy Infrastructure Modernization and Development Programme
Energy Infrastructure Modernization and CAPEX Development Programme USD4+ bn Programme Rationale • Supporting the long-term production growth TPP-2 • Securing reliable natural gas supply of Norilsk Industrial District TPP-3 • Providing the long-term heat and electricity supply Dudinka with best-in-c
Slide 71: Started Production of Carbon-Neutral Nickel
Norilsk Nickel Started Production of Carbon-Neutral Nickel • The first batch of carbon-neutral products totals 5 kt of nickel cathodes produced by the Group’s Kola Division • The carbon-neutral nickel will be tokenised on Atomyze, a Blockchain platform, and the tokens will be listed on the Vienna St
Slide 72: Sulphur Programme 2.0: Environmental Roadmap
1H 2021 Financial Results | Operations and Strategy Update Sulphur Programme 2.0: Environmental Roadmap Copper Plant Norilsk Smelter Nickel town Nadezhda Smelter Nickel Town and Zapolarny City SO2 Emissions Reduced by 71% in 2020 (2) Kola Division Polar Division Nickel Plant (Shut down in 2016)
Slide 73: Sulphur Programme 2.0: Construction in Progress
Sulphur Programme 2.0: Construction in Progress • Nadezhda Smelter (Norilsk Division) Flagship project to capture furnace gases and build sulfuric acid neutralization facilities and necessary infrastructure: - All key contracts signed - Piling, steel works, gypsum storage dam raising – in progress -
Slide 74: CAPEX Guidance Update
1H 2021 Financial Results | Operations and Strategy Update CAPEX Guidance Update [USD bn] ~4.0 ~3.0 2.0 1.8 2020 2021E average 2022-2025E average 2026-2030E Revised to the upper end Potential addition of of the previous USD3.5-4.0 bn range new investment projects / due to construction cost inflation
Slide 75: Short-term Outlook
1H Financial Results Presentation Short-term Outlook After a temporary marginal deficit in 2021, 2021 Metal Production Guidance (1) market to develop a surplus in 2022 as the rapid Ni expansion of Indonesian NPI will outpace demand recovery driven by growth of stainless in Indonesia 2,350-2,410 and
Slide 76: Appendix
Q NORNICKEL Appendix
Slide 77: Renewable Power Generation and Storage to Drive Base Metals Demand
1H Financial Results| Markets Update Renewable Power Generation and Storage to Drive Base Metals Demand Ni Demand in Renewables to Reach 1Mt by 2050… …Driven by Wind Power [kt Ni] Annual Nickel Demand in Renewable Energy and Concentrated Solar Power 950 [kg Ni] Nickel Intensity per MW Installed Capa
Slide 78: Auto Driven Metal Demand Growth in 2030E vs 2020
1H Financial Results| Markets Update Auto Driven Metal Demand Growth in 2030E vs 2020 Pd Ni 0.8 Cu +3.6 % of current demand(1) 25% +2.5 % of current demand(1) 30% % of current demand(1) 15% 0.4 +2.2 +0.2 0.5 0.5 +1.6 +0.7 +0.1 +2.0 +0.8 +0.4 Hybrids PHEV (2) ICE only (3) 2025E 2030E BEV&PHEV ICE 202
Slide 79: Contacts
Contacts Vladimir Zhukov Vice President Investor Relations Tel: +7 (495) 786 83 20 E-mail: ir@nornik.ru Mikhail Borovikov Head of Investor Relations Tel: +7 (495) 786 83 20 E-mail: ir@nornik.ru 79