2000 Financial Results in accordance with International 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 Change Sales % International sales % Domestic sales % Cost of goods sold and SG&A % Operating profit % Profit tax % Net income % Income Statement

Revenues (RuR millions) +63% Note: 2000 changes are in brackets

Financial Performance Gross Profit Margin EBIT Margin Net Income Margin

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 Performance Return on Assets Return on Shareholders’ Equity EPS

Key Balance Sheet Items - RuR millions Cash and cash equivalents Property, plant and equipment Inventories Shareholders Equity, as % of balance sheet64,4%55,0% Credits and loans

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 (24 046) (1 143) - RuR millions - Operating Activities Investing Activities Financings Activities Capital Assets Revaluation Net increase in cash and cash equivalents (4 917) (3 399) (507) (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 (continued) - RuR billions - Capital Expenditures (RAS)9.8 -revaluation of inventories, construction-in- progress and other inflation1.0 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