The Company in 2003

1
The Company in 2003

• Anton Berlin
• Head of Market Analysis Development

2
Norilsk Nickel Group

• One of the global leaders in metals mining sector
• Employs over 80,000
• Revenue over US5 billion in 2003
• Core activities prospecting, mining, smelting
  and refining base and precious metals
• Core products Nickel, Copper, Palladium,
  Platinum, Gold
• By-products Cobalt, Silver, Rhodium, Ruthenium,
  Iridium, Selenium,Tellurium

3
Global Presence
Norilsk Nickel Europe London
KOLA DIVISION, Murmansk
Norimet Ltd. London
HEADQUARTERS Moscow
Norilsk Nickel USAPittsburg
MATROSOV MINE, Magadan
GIPRONIKEL, St-Petersburg
LENZOLOTO, Irkutsk
STILLWATER MINING COMPANY, Montana USA
Market Share
ZAO POLYUSKrasnoyarsk
POLAR DIVISION, Norilsk
GOLDFIELDS, South Africa
Norilsk NickelAsia
4
A Global Leader In Metals
Market Share
13
18
3
Metal
gt40
1.5
14
5
Market Position in 2003
Largest Nickel Producers ( share of world
production)
Largest Palladium Producers ( share of world
production)
Largest Platinum Producers ( share of world
production)
Largest Gold Producers (in millions of ounces,
proforma for NN)
Largest Copper Producers ( share of world
production)
() Based upon estimates by \HSBC
6
Marketing policy

• Consumer-oriented sales policy
• Wide range of services to each and every client
• Priority to long-term relationships
• Flexibility in commercial terms

7
Norilsk-Stillwater Deal

• On June 23, 2003, Norilsk Nickel completed the
  investment in the Stillwater Mining Company of
  Montana
• Norilsk Nickel paid Stillwater US132 million in
  cash and 877 thousand ounces of palladium metal
  for those shares

8
Norilsk Winnings

• Demonstration to the world market that we believe
  the misfortunes of palladium to be a temporary
  event
• Restore confidence in the palladium market
• A high-grade asset

9
Stillwater Winnings

• Financial debt resolved
• Additional metals to supply to US consumers
• Independent directors on behalf of Norilsk
• Norilsk Nickel and Stillwater remain independent
  producers and world competitors in the mining and
  marketing of metals

10
Stillwater Winnings
Norilsk Nickel completes the investment in
Stillwater Mining
11
Palladium Supply Fundamentals

• Primary supply
• South African expansions
• Developments elsewhere
• Secondary supply
• Recoveries from converters installed in early 90s
  will peak in 2007

12
Palladium Demand Fundamentals

• Automotive sector
• Stockpile depletion
• Diesel technology developments
• Jewellery
• White gold
• Palladium jewellery
• Electronics
• Stockpile depletion
• Hydrogen Economy

13
Palladium Market Development

• On November 10, 2003 Norilsk Nickel signed an
  agreement on hydrogen economy development with
  the Russian Academy of Science - a National body
  for fundamental and application research uniting
  hundreds of institutes and research centers.
• The program is set to continue for at least 3
  years with financing up to US40 million per annum

14
Hydrogen Economy Development
15
The Markets in 2003

• Denis Lepetukha
• Managing Director

16
Demand in 2003

• Automotive/Electronics demand matches usage
• Jewellery increased
• Dental/Chemical stable

17
Supply in 2003

• More coming out of SA
• Increased recoveries from secondary material

18
PGM Prices
Platinum Palladium Price (LPPM)
(in USD per ounce)
Platinum/Palladium Price Ratio
3-year average
19
Palladium Sales in 2003
America
Europe
Palladium Production
Palladium Sales
Asia

• In 2003 we sold all the metal produced
• Achieved sales price without discount to the
  annual average