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MMC Norilsk Nickel: MMC NORILSK NICKEL REPORTS FIRST HALF 2013 UNAUDITED INTERIM CONSOLIDATED IFRS FINANCIAL RESULTS

EquityStory.RS, LLC-News: MMC Norilsk Nickel / Key word(s): Half Year
Results
MMC Norilsk Nickel: MMC NORILSK NICKEL REPORTS FIRST HALF 2013
UNAUDITED INTERIM CONSOLIDATED IFRS FINANCIAL RESULTS

29.08.2013 / 16:39

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MMC NORILSK NICKEL REPORTS FIRST HALF 2013 UNAUDITED INTERIM CONSOLIDATED
IFRS FINANCIAL RESULTS

Moscow, August 29, 2013 - OJSC MMC Norilsk Nickel ('MMC Norilsk Nickel',
the 'Company' or the 'Group'), the largest nickel and palladium producer in
the world, today reports unaudited financial results for the six months
ended June 30, 2013.

1H 2013 HIGHLIGHTS

- Robust financial results despite turbulent macro environment and
weakening commodity prices.

- Revenue amounted to USD 5.6 billion, down 6.1% y-o-y owing to weak
metal prices and lower sales volumes of nickel and platinum.

- EBITDA decreased 7.8% y-o-y to USD 2.3 billion driven by lower metals
revenue, which was partially off-set by improved sales and distribution
performance and a substantial decrease in SG&A.

- EBITDA margin demonstrated resilience reaching 41% (vs 42% in 1H 2012)
due to effective cost controls.

- Net profit of USD 545 million was down 63% y-o-y owing to USD 636
million of non-cash write-offs; net profit, excluding non-cash
write-offs, amounted to USD1.2 billion and was down 21%.

- Despite substantial revenue contraction net cash flow from operating
activities of USD 1.6 billion was practically unchanged y-o-y owing to
better management of working capital.

- CAPEX decreased by 21% y-o-y to USD 0.9 billion as the management
adopted more stringent capital allocation discipline, with expected
mandatory CAPEX savings of at least USD 300 million for the full year
2013.

- Annual dividends for 2012 were paid in the amount of RUB 400.8
(approximately USD 12.9) per ordinary share underlying the Company's
commitment to shareholder returns.

- The restructuring of the corporate head office was launched aiming to
bring management practices in line with global industry standards and a
new management team was appointed.

- Strategic review on non-core businesses and selected international
assets was launched.

RECENT DEVELOPMENTS

- On August13, 2013 the Company reduced its share capital by 8.08%
through cancellation of 13,911,346 treasury shares, thus fully
completing the redemption of treasury stock announced in December 2012.

KEY HIGHLIGHTS

USD million unless stated otherwise              1H2013    1H2012    Change