IFRS FINANCIAL RESULTS

Moscow, April 12, 2013 - OJSC  MMC Norilsk Nickel ("MMC Norilsk Nickel",  the 
"Company" or the "Group"),  the largest nickel and  palladium producer in  the 
world,  today  reports   audited  financial   results  for   the  year   ended 
31December2012.  Today  the  Board  of  Directors  approved  the   Company's 
consolidated financial statements  prepared in  accordance with  International 
Financial Reporting  Standards ("IFRS").  The resolution  of conflict  between 
shareholders helped  the  Group to  finalize  the statements  and  to  receive 
unqualified audit opinion in the shortest time possible.

Full Year 2012 Highlights

  oSales revenue amounted to USD 12.1 billion decreasing 15% y-o-y due to
    unfavourable pricing trends on metals produced by the Company
  oEBITDA was USD 4.9 billion with a strong EBITDA margin of 41%
  oNet profit decreased 41% y-o-y to USD 2.1 billion impacted by USD 976
    million non-cash write-offs
  oNet cash from operating activities amounted to USD 3.4 billion (down 27%
  oCAPEX reached USD 2.7 billion (up 22% y-o-y)

Recent Developments

  oOn February 28, 2013 the Group placed three-year bonds in the amount of
    RUR 35 billion with an interest rate of 7.9%
  oOn April 2, 2013 the Company reduced its share capital by 9.69% through
    cancellation of 18,470,925 treasury shares

Consolidated Financial Results

                    USD million                     FY2012 FY2011 Change y-o-y
Revenue                                             12,065 14,122    (15%)
Gross profit                                        5,920  8,329     (29%)
EBITDA                                              4,928  7,239     (32%)
EBITDA Margin                                        41%    51%    (10 p.p.)
Net profit                                          2,143  3,626     (41%)
Net profit adjusted for impairment of financial and 3,118  4,021     (22%)
non-financial assets
Net cash from operating activities                  3,434  4,702     (27%)
Capital expenditures                                2,713  2,232      22%

Commenting on  the results,  Chief  Financial Officer  of the  Company  Sergey 
Malyshev said, "Taking into account unfavourable macroeconomic environment  in 
2012, we consider the financial results  of the Company to be decent.  Norilsk 
Nickel continued  to  generate stable  cash  flow from  its  operations  which 
provides  for  stable  level  of  investments  in  its  core  businesses.  The 
management's efforts  to  control  costs  resulted in  a  modest  increase  in 
operating expenses  and supported  EBIDTA margin  at par  with leading  global 
mining companies. At the  same time we see  additional opportunities for  cost 

As the  capital  markets currently  offer  attractive terms  we  consider  the 
rebalancing of the capital structure of the Company. The current debt level of
Norilsk Nickel is comfortable enough  for additional borrowings to be  further 
invested in projects  with high  potential returns. The  Company confirms  its 
commitment to sustainability of operations and stable metals output".


       USDmillion        FY2012 FY2011 Changey-o-y
Total revenue            12,065 14,122    (15%)
Revenue from metal sales 11,061 13,297    (17%)
Nickel                   5,223  6,715     (22%)
Copper                   2,871  3,258     (12%)
Palladium                1,722  1,985     (13%)
Platinum                 1,028  1,145     (10%)
Gold                      217    194       12%
Revenue from other sales 1,004   825       22%

Metal sales revenue  in 2012  decreased almost  17% year-on-year  to USD  11.1 
billion driven by  weak prices  for base and  precious metal  produced by  the 
Company, while the physical volumes of metals sold were almost unchanged.

Metal sales, physical volumes, by place of production ^ 1,2)

       Total Group,         FY2012 FY2011 Change y-o-y
excluding South Africa ^3)
Nickel(thousand tonnes)      293    291        1%
Copper (thousand tonnes)     358    369       (3%)
Palladium (thousand ounces) 2,658  2,696      (1%)
Platinum (thousand ounces)   657    661       (1%)

Finished products

Russian entities and Finland FY2012 FY2011 Change y-o-y
Nickel(thousand tonnes)       280    284       (1%)
Russia                        234    234        0%
Finland                        46     50       (8%)
Copper (thousand tonnes)      352    358       (2%)
Palladium (thousand ounces)  2,629  2,665      (1%)
Platinum (thousand ounces)    652    655       (1%)

Semi-finished products

           Metal             FY2012 FY2011 Change y-o-y
Nickel(thousand tonnes)        6      -        n/a
Nickel (thousand tonnes)       7      7         0%
Copper (thousand tonnes)       5      6       (17%)
Palladium (thousand ounces)    27     31      (13%)
Platinum (thousand ounces)     5      6       (17%)
Copper (thousand tonnes) ^4)   1      5       (80%)

Average selling priceof metals of Russian entities, own production

              Metal               FY2012 FY2011 Change y-o-y
Nickel (in USD per tonne)         17,719 23,060    (23%)
Copper (in USD per tonne)         8,015  8,871     (10%)
Palladium (in USD per troy ounce)  643    735      (13%)
Platinum (in USD per troy ounce)  1,549  1,724     (10%)
Gold (in USD per troy ounce)      1,675  1,565       7%

1) All information is presented on the basis of 100% ownership of subsidiaries
2) Sales of metals purchased from third parties are excluded
3) The operating results  of Nkomati Nickel Mine  (South Africa) are shown  in 
the financial statements based on the Group's 50% ownership and are  presented 
as operating results of associates
4) Copper cake is a semi-product with average copper content of 38-40%


In 2012, nickel sales  accounted for 47%  of revenue from  metal sales of  the 
Group being the largest contributor. While the sales volumes of nickel in 2012
increased 1% y-o-y and  amounted to 293 thousand  tonnes, the average  selling 
price plummeted by 23% y-o-y  to USD 17,719 per tonne.  As a result of such  a 
negative price dynamics the total revenue  from nickel sales went down by  22% 
and reached USD 5.2 billion.
Sales volume of nickel produced by the Russian entities remained unchanged and
amounted to 234 thousand tonnes.
The physical  volume of  sales produced  at Harjavalta  decreased by  8% as  a 
result of lower  volumes of  raw materials  delivered to  the nickel  refining 
plant by third parties.
Volume  of  sales   of  nickel  semi-products   produced  by  Norilsk   Nickel 
International (excluding Norilsk  Nickel Harjavalta and  Nkomati Nickel  Mine) 
increased by 6  thousand tonnes  due to the  re-launch of  operations at  Lake 
Johnston in Australia.


Revenue from copper sales in 2012 accounted  for 26% of total metal sales  and 
declined by 12% to USD 2.9 billion as compared to USD 3.3 billion in 2011. The
key reason for the sales decrease was decline in average selling price by  10% 
from USD 8,871 per tonne in 2011 to USD 8,015 per tonne in 2012.
The physical volume of sales of copper produced by the Company decreased by 3%
to 358  thousand  tonnes mostly  in  line with  a  slight decrease  of  copper 
production at Kola and Polar divisions  which was caused by decrease of  metal 
content in mined ore.


Revenue from palladium sales made  up 16% of revenue  from metal sales of  the 
Group in 2012 and amounted to USD 1.7 billion (down by 13% y-o-y).
Physical volume of  sales of  palladium produced by  the Company  was flat  as 
compared to 2011 at the level of 2.7 thousand ounces. Decrease in revenue  was 
a result of a  soft sales price which  declined by 13% from  USD 735 per  troy 
ounce in 2011 to USD 643 per troy ounce in 2012.


In 2012, revenue from  platinum sales accounted for  9% of revenue from  metal 
sales of the  Group. Platinum  sales revenue decreased  by 10%,  from USD  1.1 
billion in 2011 to USD 1.0 billion in 2012.
The key reason  of the decline  was weak  selling price which  dropped by  10% 
y-o-y, while the physical volume of sales reduced only by 1%.


Revenue from gold sales accounted for 2% of metal sales of the Group in  2012. 
The revenue increased from USD 194 million in 2011 to USD 217 million in  2012 
mostly due to the growth of the gold selling price by 7% y-o-y.

Other sales

     USD million      FY2012 FY2011 Change y-o-y
Total                1,004   825       22%
Energy and utilities  159    157        1%
Transport              540    377       43%
Other                  305    292        5%

In 2012, other sales increased by USD 179 million (or by 22%) and amounted  to 
USD 1 billion.
The growth in revenues from other sales in 2012 was driven by the increase  in 
volumes of transportation services provided by 'Taimyr airlines" and  acquired 
company "Nordavia".


2.1. Cost of metal sales

                    USD million                     FY2012 FY2011 Change y-o-y
Total cost of metal sales                           5,162  4,967       4%
Cash operating costs                                4,717  4,621       2%
Labour                                              1,488  1,464       2%
Consumables and spare parts                         1,309  1,157      13%
Expenses on acquisition of raw materials and other   918   1,195     (23%)
Outsourced third party services                      651    558       17%
Utilities                                            216    236       (8%)
Tax directly attributable to cost of goods sold      193    172       12%
Transportation                                       156    149        5%
Sundry costs                                         109    115       (5%)
Less: sale of by-product metals                     (323)  (425)     (24%)
Amortisation and depreciation                        712    698        2%
(Increase)/decrease in metal inventories            (267)  (352)     (24%)

Measures implemented by  the management  on the  back of  harsh metal  markets 
conditions, as well as growth in average exchange rate of Russian Rouble to US
Dollar (effect of translation to  presentation currency) resulted in a  growth 
rates below Russian CPI.
Cost of metals sold increased by 4% y-o-y, from USD 5.0 billion in 2011 to USD
5.2 billion in 2012.

Cash operating costs

Cash operating costs  of the Group  increased by  2% and amounted  to USD  4.7 
billion in 2012 as compared to USD 4.6 billion in 2011.
The composition of  cash operating costs  in 2012 has  changed as compared  to 
2011. These  changes primarily  related to  the growth  in costs  incurred  on 
acquisition  of  consumables  and  spare  parts  and  outsourced  third  party 
services, and  decrease  in expenses  for  acquisition of  raw  materials  and 

The share of cash operating  costs among key production  units in 2012 was  as 

  oRussian divisions and Finland - 94%,

       oNorilsk Nickel International  - 6%.

Labour costs

Labour costs are a significant component in total cash operating costs with  a 
fairly stable share of 30% of total operating costs.
In 2012, labour  costs amounted  to USD 1.5  billion increasing  by 2%  y-o-y. 
Indexation of rouble-denominated salaries and wages in line with inflation was
partly compensated by the effect of translation to the presentation currency.

Consumables and spares

Expenditures on consumables and spare  parts increased by 13% y-o-y  amounting 
to USD 1.3 billion in 2011. The increase was driven by the following factors:

  oincreased number of consumables and spares purchased due to the higher
    repairs and maintenance volumes in Russia and Finland (up USD 94 million);
  oinflationary growth in prices on consumables, spares and fuel (up USD 95
  oimpact of the full year of operations at Lake Johnston (up USD 27

Forex impact of USD 64 million partially offset the growth of the costs.

Expenses on acquisition of raw materials and semi-products

Expenses related to  acquisition of  semi-products from 3^rd  parties in  2012 
decreased by USD 277 million (or 23%) y-o-y and amounted to USD 918 million.
The decrease of  these costs was  mostly driven by  re-launch of  concentrates 
production in Lake Johnston in Australia, decline of NN Harjavalta  production 
and lower purchasing prices.

Third party services

In 2012,  expenditures on  services from  third parties  increased by  USD  93 
million (or by 17%) and amounted to USD651 million. Main reason for  increase 
of these costs  was higher  volumes of  repair and  maintenance activities  in 
Russia and Finland.


Utility costs in 2012 decreased by USD 20 million (or by 8%) y-o-y to USD  216 
million. The key  reasons for the  decrease were lower  tariff on  electricity 
purchased by Kola MMC on open wholesale market and Forex gains.

Transportation costs

In 2012, transportation costs  increased by 5% y-o-y  and amounted to USD  156 
million driven by a 13% y-o-y  increase in shipping volumes of cathode  copper 
and higher volumes of external transportation services used by Polar division.

2.2. Cost of other sales

     USD million      FY2012 FY2011 Change y-o-y
Total                 983    826       19%
Energy and utilities  149    138        8%
Transport              471    328       44%
Other                  362    360        1%

Other cost of  sales increased  by USD  157 million in  2012 (or  by 19%)  and 
amounted to USD 983  million as a  result of higher  volumes of air  transport 
services provided by 'Taimyr airlines' and acquired company "Nordavia".


      USD million       FY2012 FY2011 Change y-o-y
Total                   542    828      (35%)
Export customs duties    479    779      (39%)
Transportation expenses   33     25       32%
Labour                    17     17        0%
Other                     13     7        86%

Selling and  distribution expenses  declined 35%  y-o-y and  amounted USD  542 
million driven  mostly by  a  significant decline  in export  customs  duties 
following the reduction of nickel export duties by the Russian Government.

4. General and administrative expenSES

                    USD million                     FY2012 FY2011 Change y-o-y
Total                                              1,000   848       18%
Labour                                               584    467       25%
Third party services                                 146    135        8%
Taxes other than those directly attributable to      108     88       23%
cost of goods sold and income taxes
Amortization and depreciation                         33     29       14%
Transportation expenses                               18     19       (5%)
Other                                                111    110        1%

General and  administrative  expenses of  the  Company increased  by  USD  152 
million (or by 18%) to USD 1 billion. The major contributor to this growth was
a 25% increase in labour as a result of substantial retirement benefits to the
top management and increased average salary of the Company's employees.

5. impairment of tangible and intangible assets

In 2012, loss from impairment of property, plant and equipment and  intangible 
assets amounted to USD 278 million. The main source of the loss was impairment
of  Norilsk   Nickel  International   assets   in  Botswana   and   Australia. 
Additionally, an impairment loss  related to the  Company's investment in  its 
50% joint  venture, Nkomati,  has been  recognized  in the  amount of  USD  97 

6. finance costS

                   USD million                     FY2012 FY2011 Change y-o-y
Total                                              294    151       95%
Interest expense on borrowings                      236     96       146%
Unwinding of discount on environmental obligations   52     46       13%
Interest expense on employee benefits obligations    5      7       (29%)
Interest on obligations under financial lease        1      2       (50%)

Finance costs of the Company  in 2012 reached USD  294 million as compared  to 
USD 151 million a year ago. The  growth of finance costs was mainly driven  by 
new external fundraising on prevailing market terms


Loss from investments in  2012 amounted to  USD 552 million  being one of  the 
major factors that negatively affected the Company's net profit for the year.
The main reasons for the loss from investments was a significant and prolonged
decline in share prices for securities  traded on the Russian stock  exchanges 
(primarily  ordinary   shares   of  Inter   RAO   UES),  which   resulted   in 
reclassification of losses previously accumulated within a separate reserve in
equity, into the income statement based on IFRS requirements.


In 2012, current income tax expense decreased  by USD 407 million (or by  28%) 
to USD 1,039 million as compared to USD 1,446 million in 2011 as a result of a
lower taxable base for the year.  Total income tax expense including  deferred 
taxes decreased by USD 460 million (or by 32%) to USD 1,000 million.
Effective tax rate increased to 32% in 2012  from 26% in 2011, as a result  of 
recognition of certain non-deductible expenses such as impairment of Inter RAO
UES shares.


           USD million             FY2012 FY2011 Change y-o-y
Operating profit                   3,864  6,235     (38%)
Depreciation and amortisation       786    761       3 %
Impairment of non-financial assets  278    243       14 %
EBITDA                             4,928  7,239     (32%)

In 2012, EBITDA amounted to USD 4.9 billion with EBITDA margin of 41%.


                   USD million                    FY2012  FY2011  Change y-o-y
Net cash generated from operating activities       3,434   4,702     (27%)
Net cash used in investing activities             (2,914) (1,876)     55%
Net cash used in financing activities             (1,164) (6,644)    (82%)
Net decrease in cash and cash equivalents          (644)  (3,818)    (83%)
Cash and cash equivalents at beginning of the      1,627   5,405     (70%)
Cash and cash equivalents of disposal group at       -      106       n/a
beginning of the year
Effect of foreign exchange differences on
balances of cash and cash equivalents and           54     (66)       n/a
translation to presentation currency
Cash and cash equivalents at end of the year       1,037   1,627     (36%)

Net operating cash flow decreased in 2012  by USD 1.3 billion and amounted  to 
USD 3.4 billion  as compared  to USD  4.7 billion  in 2011  as a  result of  a 
substantial decrease in sales revenue compensated by decrease in taxes paid.

Net cash outflow  from investing activities  in 2012 reached  USD 2.9  billion 
driven mostly  by  capital  investments in  construction  and  acquisition  of 
property, plant and  equipment and  intangible assets  in the  amount USD  2.7 

Net cash  expenditure on  financing activities  amounted to  USD 1.2  billion, 
primarily driven by the following:

  oinflow from borrowings in the amount of USD 2.5 billion;
  orepayments of short term loans and borrowings in the amount of USD 2.7
  opayment of dividends by Group and its subsidiaries for 2011 in the amount
    of USD 976 million

Cash and cash equivalents decreased by 36% y-o-y amounting to USD 1,037 as  of 
December 31, 2012.

                                * * *

The full version  of the consolidated  financial statements of  the Group  for 
2012 prepared in accordance with IFRS is available at the website of the Group
( in the Investors/Financial Statements section.

Conference call and webcast

On Monday April 15, 2012, MMC Norilsk  Nickel will host a conference call  and 
webcast for investors &  analysts at 18:00 Moscow  time (15:00 London /  10:00 
New York).

The conference  call will  be  hosted by  the  Company's management  who  will 
present the  results and  answer questions  from conference  call and  webcast 

The call will be held in English.

Webcast link:
Conference call dial-ins:

Moscow 7 (499) 272-43-37
International 44 (0) 20-30-03-26-66

Toll Free:

Russia   8 10 800-24-90-20-44
UK  08 08 109-07-00
USA  1 866 966-53-35

Conference Call Password: Norilsk Nickel.

For further information, please, contact:

Media Relations:          Investor Relations:
Phone: +7 (495) 797 82 94 Phone: +7 (495) 786 83 20
Email:       Email:


MMC Norilsk  Nickel, a  company incorporated  under the  laws of  the  Russian 
Federation, is the largest  diversified mining and  metals company in  Russia, 
the world's largest producer  of nickel and palladium  and one of the  world's 
largest producers  of platinum,  rhodium, copper  and cobalt.  In addition  to 
this, MMC  Norilsk  Nickel  produces  a large  number  of  other  by-products, 
including gold, silver, tellurium, selenium, iridium and ruthenium.
The key production units of the Company's group in Russia are at the Polar and
Kola Peninsulas. MMC Norilsk Nickel international assets include operations in
Finland, Australia, Botswana and South Africa.
MMC Norilsk Nickel's shares  are traded on the  Moscow Exchange. ADR's on  the 
Company's shares are traded on  the over the counter market  in the US and  on 
the London and Berlin stock exchanges.


This announcement is distributed by Thomson Reuters on behalf of Thomson
Reuters clients.

The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other
applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of
information contained therein.

Source: MMC Norilsk Nickel via Thomson Reuters ONE
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