2000 Financial Results 2000 Financial Results in accordance with in accordance with

International Accounting StandardsInternational Accounting Standards

Principles of Reconciliation The IAS financials results have been prepared based on the Russian Accounting Standards

financial reports

Currency of reporting – Russian rouble (RuR)

Accounting in a hyperinflation environment - IAS 29

Inflation over the last 3 years was close to 100%

The population prefers to keep its savings in a foreign currency

Payments by credit are priced at levels compensating for the purchasing power loss over the

term of the credit

average annual inflation index in 2000: 1,088

IAS review has been prepared by KPMG auditors

- RuR millions - 2000 1999 Change

Sales 152 989 94 142 +63% International sales 136 335 89 071 +53%Domestic sales 16 654 5 071 +228%

Cost of goods sold and SG&A 77 572 48 251 +61%Operating profit 67 109 35 972 +87%Profit tax 12 967 23% 15 915

Net income 40 089 17 249 +132%

Income Statement

Revenues (RuR millions)

Ni 40%

Cu 21%

PGMs 33%

Co 3%

Other 3%

94 142

152 989

Ni 40%(38%)

Cu 15%(14%)

PGMs46%

(125%)

Co 2%(-9%)

Other 4%(105%)+63%

1999 2000Note: 2000 changes are in brackets

Financial PerformanceGross Profit Margin EBIT Margin Net Income Margin

1998 1998 19981999 2000 1999 19992000 2000

60.4%

39.6%

14.9%

59.5%

38.2%

18.3%

55.1%

43.9%

26.2%

Cost of Goods Sold

Operations:

Production growth and inflation:

Growth of costs of purchased materials

Growth of costs of electricity and fuel

Increase in costs of servicing machines and equipment

Growth in salaries

Norimet consolidation:

Resulted in third party sales and third party purchases, amortization of goodwill and a revaluation of Norimet inventories to the cost of purchase. This revaluation was due to the difference in accounting of Norilsk Nickel and Norimet. Norilsk Nickel accounts for its inventories at the cost of purchase, while Norimet was accounting stockpiles of metals at current market prices.

7.5%

15.3%

0.56 RuR

12.3%

22.4%20.7%

32.1%

91 RuR

188 RuR

Financial PerformanceReturn on Assets Return on

Shareholders’ Equity EPS

1998 19981999 2000 1999 19992000 200019991998

Key Balance Sheet Items - RuR millions - 2000 1999

Cash and cash equivalents 16 886 8 818

Property, plant and equipment 81 318 70 225

Inventories 34 307 25 709

Shareholders Equity, 125 072 77 103as % of balance sheet 64,4% 55,0%

Credits and loans 29 217 16 557

Key Balance Sheet Items Operations:

Growth in cash (by RuR 8 billion)

Growth in inventories (RuR 8,6 billion ) due to increase in purchased materials by RuR 9,4 billion

Growth in accounts receivable (RuR 13,5 billion) due to increase in VAT receivables from the state (RuR 6,3 billion)

Growth in accounts payable (RuR 0,8 billion)

Norimet Consolidation:

Increase in credits and loans by RuR 8,3 billion

Increase in intangibles by RuR 5,5 billion (goodwill)

Increase in inventories by RuR 7,1 billion

Increase in accounts payable (RuR 0,6 billion) and accounts receivable (RuR 13,2 billion)

Cash Flows

19 044(24 046)

14 2138 069

(1 143)

- RuR millions -

Operating Activities

Investing Activities

FinancingsActivities

Capital Assets Revaluation

Net increase in cash and cash equivalents

15 901(4 917)

(3 399)

(507) 7 078

1999 2000

10 984

7 5857 078

8 0699 211

(5 002)

Cash Flows (continued) Operating Activities:

Payback of tax arrears for the previous years (RuR 6,9 billion)

Norimet consolidation: the calculation of the change in inventories, receivables and payables of the Group reflects the acquisition of Norimet

Investing Activities:

Capital expenditures totaled RuR 18,0 billion, by 280% more than in 1999

The main targets for capital expenditures were the following mines: «Oktyabrsk», «Kaula-Kotselvaara» and «Taimyrsk», Talnakh concentrator and Pelyatinskoye gas condensate mineral deposit

Acquisition of a stake in the Novolipetsk metallurgical plant (RuR 6,2 billion)

Capital Expenditures - RuR billions -

Capital Expenditures (RAS*) 9.8

* Russian Accounting Standards

Capital expenditures by type of expenditure in 2000% of capital

expendituresRaw materials supply 20%Concentration 15%Metallurgy 9%Energy 6%Equipment not included in construction bill 41%Accessorial assets 5%Non-production assets 4%Total 100%

Capital Expenditures (continued) - RuR billions -

Capital Expenditures (RAS) 9.8

- revaluation of inventories, construction-in-progress and other

7.2

- inflation 1.0

Capital Expenditures (IAS) 18.0

Prospects

Review of interim IAS 6 month and 9 month 2001 financials

Review of IAS 2001 financials

Audit of IAS financials starting 2002

Restatement of interim (quarterly) financial reports starting 2002 and review of half-year results