June 2, 2004 MMC Norilsk Nickel Group Audited Consolidated Annual Financial Statements 31 December 2003

IFRS Financial Results Basis of presentation The consolidated annual financial statements have been prepared in compliance with with International Financial Reporting Standards (IFRS) and audited by Deloitte & Touche in accordance with ISA The presentation currency - the United States of America Dollar

IFRS Financial Results Consolidated income statement

IFRS Financial Results Consolidated balance sheet

IFRS Financial Results Cash at the beginning of the year Cash flow from operating activity Cash flow from investing activity Cash flow from financing activity Effects of inflation Net cash at the end of the year* Consolidated cash flow statement (In millions of US dollars) * - Cash is shown net of bank overdraft (616) (486) (464) (625) (97) data

IFRS Financial Results Ni Cu Pd Pt Au Metal prices for joint products US dollars per tonne (Ni) US dollars per ton (Cu); US dollars per ounce (Pt, Pd, Au) 1 January July January July January July January 2004 Source: Bloomberg; LME; LPPM Platinum (Pt)Palladium (Pd)Gold (Au)Copper (Cu)Nickel (Ni)

IFRS Financial Results Revenues Sales volume (In millions of US dollars) 13% 4% 23% 54% 6% Platinum 12% Gold1% Copper 19% Nickel 38% Palladium 30% -29% % 10% 7% 55% 12% %

IFRS Financial Results Sales volumes (In millions of US dollars) Including domestic sales TO BE UPDATED PlatinumGoldCopperNickelPalladium

IFRS Financial Results Europe 62% Asia 12% North America 13% Others 0% Russia 13% Europe 72% Asia 8% Russia 10% Others 1% North America 9% Sales by region Sales volume (In millions of US dollars) 100% = % = 3 094

IFRS Financial Results Physical volumes sales Nickel sales (Tons in thousand) Copper sales (Tons in thousand) Norimet & export sales Domestic sales Gold sales (In ths ounces) Norimet & export sales Domestic sales 70 from inventories

IFRS Financial Results Cash operating cost

IFRS Financial Results Cash cost per unit Production cost of Nickel (In US dollars per ton) Polar Division Kola Division Production cost of Copper (In US dollars per ton) Polar Division Kola Division Production cost of gold (In US dollars per ounce) Polar Division Kola Division Polar Division ZAO Polyus

IFRS Financial Results Social Costs Social costs* (In millions of US dollars) Note: (*) Social costs include expenses on maintenance of social sphere facilities and donations -42% -11%

IFRS Financial Results Change in working capital (In millions of US dollars) -13% -39%-50% -19% +23% +14% NOTE: 2002 data includes consolidation of last two months results of ZAO Polyus 2003 data includes consolidation of last two quarters results of Stillwater Mining Company and full year results of ZAO Polyus

IFRS Financial Results Long-term borrowings Current portion of long-term borrowings Short-term borrowings Debt structure (In millions of US dollars) NOTE: 2002 data includes consolidation of last two months results of ZAO Polyus 2003 data includes consolidation of last two quarters results of Stillwater Mining Company and full year results of ZAO Polyus

IFRS Financial Results Capital expenditure in (In millions of US dollars) NOTE: 2002 data includes consolidation of last two months results of ZAO Polyus 2003 data includes consolidation of last two quarters results of Stillwater Mining Company and full year results of ZAO Polyus