15 Mar 2016 08:27
MMC Norilsk Nickel / Annual Financial ReportMMC Norilsk Nickel: MMC NORILSK NICKEL REPORTS FULL YEAR 2015 AUDITEDCONSOLIDATED IFRS FINANCIAL RESULTS 15-March-2016 / 09:27 CET/CESTDissemination of a Regulatory Announcement, transmitted by EquityStory.RS,LLC - a company of EQS Group AG.The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- MMC NORILSK NICKEL REPORTS FULL YEAR 2015 AUDITED CONSOLIDATED IFRSFINANCIAL RESULTS Moscow, March 15, 2016 - PJSC MMC Norilsk Nickel ('Norilsk Nickel', the'Company' or the 'Group'), the largest refined nickel and palladiumproducer in the world, today reports IFRS financial results for the fullyear ended December 31, 2015. FY2015 HIGHLIGHTS - The world's best portfolio of Tier 1 mining assets, management focus on stringent investment governance discipline, cost controls and efficiency improvements provided a solid base for robust financial performance amidst weak commodity markets. - Consolidated revenue decreased 28% y-o-y to USD 8.5 billion, impacted by lower metal prices, divestiture of international assets and one-off logistical and operational preparations for the shutdown of the nickel plant in Norilsk planned for 2016. - EBITDA was down 24% y-o-y to USD 4.3 billion, driven mainly by lower revenue. - EBITDA margin expanded from 48% to an industry-leading 50% on the back of a 26% decrease in cash operating costs, a 40% decline in SG&A expenses and the Company's exit from international mining assets. - Net profit decreased 14% y-o-y to USD 1.7 billion, while net profit adjusted for non-cash items reached USD 3.2 billion. - CAPEX increased 26% y-o-y to USD 1.7 billion driven by the execution of the downstream reconfiguration programme, accelerated development of the Skalisty underground mine, and the Bystrinsky (Chita) project having entered into an active construction phase. All major investment projects were on time and on budget. - Net working capital was down 6% y-o-y to USD 1 billion despite a material increase in saleable metals inventories and other one-off factors. - Free cash flow decreased 49% y-o-y to USD 2.4 billion, owing to lower EBITDA, slower rate of working capital release and increased CAPEX. - A strong balance sheet was maintained with Net Debt / EBITDA ratio at 1.0x as at December 31, 2015. Solid financial standing of Norilsk Nickel is confirmed by investment grade credit ratings from Standard & Poor's and Fitch credit rating agencies. - Dividends distributed to shareholders in 2015 amounted to USD 18 per share, delivering an industry-leading dividend yield. - Exit from non-core assets is on track. In 2015, the Company closed the sale of its minority stake in Inter RAO for USD 204 million and completed the sale of Tati Nickel, with the sale of the Nkomati mine expected to close by the end of 1H2016. - In line with the strategy of de-risking the greenfield Bystrinsky project, the Group has entered into a binding agreement to sell a 13% stake to a consortium of Chinese investors for USD 100 million. The sale is subject to regulatory approvals, and its completion is expected in 2Q2016. RECENT DEVELOPMENTS - In January 2016, the Group opened a 5-year fully unsecured syndicated USD 730 million revolving credit line with a consortium of Chinese banks and received a USD 100 million loan from ING Bank. - In February 2016, the Group redeemed its rouble bonds in the amount of around USD 499 million and completed placement of a new 10-year rouble bond issue in the amount of USD 199 million. KEY CORPORATE HIGHLIGTS USD million (unless stated otherwise) 2015 2014 Change,%Revenue 8,542 11,869 (28%)EBITDA1 4,296 5,681 (24%)EBITDA margin, % 50 48 2 p.p.Net profit before impairment charges and 3,167 3,968 (20%)foreign exchange losses1Net profit 1,716 2,000 (14%)Capital expenditures 1,654 1,298 27%Free cash flow2 2,405 4,725 (49%)Net working capital1,3 1,030 1,0873 (5%)Net debt2,3 4,212 3,5373 19%Net debt /12М EBITDA 1.0x 0.6xDividend per share (USD) 18.10 20.74 (13%)ROIC2 35% 29% 6 p.p. 1) A non-IFRS figure, for the calculation see the notes below. 2) A non-IFRS figure, for the calculation see an analytical review document ('Data book') together with Consolidated IFRS Financial Results available on the Company's web site. 3) Reported as of December 31, 2015 and December 31, 2014, respectively. MANAGEMENT COMMENTS Vladimir Potanin, President of Norilsk Nickel, commented: 'The 80th anniversary of Norilsk Nickel that we celebrated last year cameagainst a strong back drop of weak commodity markets, with prices for someof our products reaching multi-year lows. This challenging year howeverreiterated our confidence that the strategic choice that we made 3 yearsago was right. The focus on our world's leading Tier-1 asset portfolio,capital investments discipline and cost controls, enabled us to withstandstrong headwinds in commodity markets and generate industry leadingprofitability, which was importantly accompanied by an industry leadingstrong balance sheet. With a major downstream reconfiguration projectprogressing well and aimed for the launch this year, we feel that ourmetals industry leadership should extend further. In spite of a difficult macroeconomic environment we remained fullycommitted to our HSE programmes and delivery on our social obligations.Last year, the collective bargaining agreement with our productionpersonnel was extended for another three years, housing programs and otherbenefits for our employees were maintained, while we continued to providesupport to various charity initiatives both on the country-wide level aswell as towards local communities. A major milestone of our environmentalprotection programme is the shutdown of the Nickel Plant in the city ofNorilsk. All due preparations are being completed on time and the Plant ison track for the scheduled shut down by the fourth quarter 2016. Oncecompleted we will see a substantial decrease in overall emissions andimprovement of life quality of Norilsk residents. The unprecedented plunge in metal prices heavily weighed on ourperformance, affecting negatively our top line performance and EBITDA, withmajor positive offsets coming from foreign exchange, cost savings in Russiaand exit from international assets. As result, the Company delivered theindustry leading EBITDA margin of 50% and solid free cash flow of USD 2.4billion. We continued to deliver on our capital investment programme, with all majorinvestment projects executed on time and on budget. Total capitalexpenditures for 2015 increased 27% y-o-y to USD 1.7 billion as we wereactively preparing for the launch of a new downstream configuration in 2016by modernizing and growing capacity of the Talnakh concentrator, Nadezhdametallurgical plant and nickel refining facilities at Kola MMC. Our keymining projects were the worlds' highest IRR brownfields of the Polardivision, the ramp up of the major Skalisty underground mine and theBystrinsky greenfield project in Chita region entering into an activeconstruction phase. Besides, we delivered industry-leading shareholder returns, having paid atotal dividend of USD 18 per share, while also marking industry-leadingdividend yield. The 2015 financial year ended with a strong balance and Net debt / EBITDAratio of 1.0x in line with our average through-the-cycle leverage. Wereiterate the commitment of our financial policy to retain investment gradecredit ratings and feel that our strong cash flow generation and lowleverage provide us with sufficient flexibility to maintain a strongbalance sheet in these turbulent times. On the cusp of 2015 and 2016, we opened a new chapter in our businessdialogue with Chinese partners. In December, we signed a financing dealwith a consortium of Chinese banks, pioneering for a Russian corporate,which provides us with access to a fully unsecured 5-year credit line inChinese yuan equivalent to approximately USD 730 million. In January, weentered into partnership with a group of Chinese investors, which bought a13% equity stake in our Bystrinsky project. The work that we have done to reshape Norilsk Nickel footprint and focus onorganic growth and Tier 1 assets have already put us in a strong positionto withstand current macro and commodity headwinds. Being well advanced inthe streamlining of our asset portfolio and implementation of our operatingefficiency programme, having a committed management team and a strongbalance sheet, we feel that the Сompany will continue to deliver superiorreturns to our shareholders even amidst the currently challenging commoditymarkets.' HEALTH & SAFETY The lost time injury frequency rate (LTIFR) increased from 0.5 in 2014 to0.6 in 2015 primarily owing to a stricter methodology applied to reportinginjuries and a higher frequency of incidents at the Company's contractors.However, the current LTIFR level remained well on par with the globalmining industry standards. Unfortunately, the Company suffered 13 fatalaccidents during 2015 (five more than in 2014). All these accidents arebeing thoroughly investigated in order to improve our systems andprocedures so that every employee can return home unharmed. All theaccidents have been reported to the Board of Directors and reviewed. With safety and zerofatality regarded as key strategic priorities for theCompany and in the light of unfortunate 2015 accidents, the Companymanagement launched additional initiatives to ensure comprehensive reviewof HS&E standards, in order to improve the situation. The initiativesintroduced in 2015 include the following: - cardinal Safety Rules (employment contracts expanded with addenda) the violation of which serves as grounds for dismissal; 134 employees and 35 operating managers were fired in 2015 for the violation of the health & safety regulations; - the Company started testing both current and newly hired employees for risk tolerance at work; - a new policy was launched giving an employee the right to refuse a work assignment if it threatens their life and health. In addition to the improved internal monitoring and changes in thereporting, the management has engaged DuPont, one of the world's leadingconsultants in this area, as an independent auditor, to monitor theprogress in rolling out the corporate occupational health and safetystandards. METAL MARKETS Nickel in 2015 - market distorted by negative macro factors and inventorymovements, the lack of supply response, overly bearish sentiment towardsChina and ample metal stocks Nickel price started 2015 at approximately USD 14,900 per tonne with themarket expecting a sustained price recovery as exemplified by Bloomberganalyst consensus forecast of 2015 average annual price of USD 17,850 pertonne. Contrary to consensus expectations, nickel price was in declinethroughout most of the year and fell in December as low as USD 8,500 pertonne, the lowest level since 2003. The average LME nickel price in 2015was down 30% y-o-y to USD 11,807 per tonne. The nickel price came under a downward pressure on the back of acombination of negative macroeconomic factors, market sentiment andfundamentals. First, the strengthening of US dollar against most miningcurrencies and overly bearish sentiment towards Chinese industrial demandled to a massive fund outflows from both physical metals and commodityindex funds. For nickel specifically, this negative trend was exacerbatedby a 50% surge in speculative short positions on LME and a record-highspeculations of physical metals, with LME and SHFE combined metal tradingvolumes in 2015 exceeding the physical market size by almost 250 times. The supply side continues to lack elasticity with a number of minesoperating despite negative cash flows. The impact of low nickel prices waspartially softened by weakening of mining currencies combined with fallingoil price that allowed for average nickel cash cost to fall almost 20%y-o-y in 2015. The perceived lower cash costs despite still being abovemarket price for a substantial part of the market were part of thesentiment contributing to the weakness of nickel price in 2015. The movement of refined metal inventory in 2015 and a prior year was oftena result of the metal reallocation from one warehouse to another, but not areflection of the underlying market surplus or deficit. The reallocation ofopaque Chinese nickel inventories from bonded warehouses to LME warehousesresulted in a significant increase of LME nickel stocks, which hit 441thousand tons in the end of 2015. At the same time, a substantial amount ofnickel was moved to SHFE warehouses, which launched nickel trading in May2015, and which accumulated by the end of 2015 almost 50 thousand tons ofmetal. A lot of nickel was moved between LME warehouses, with the cost ofstorage often driving these relocations. We thus believe that albeit marketsurplus did contribute to some increase in the total exchange inventory in2015, it was not a major driver. The market, however, often misinterpretedthe growth of inventory as a signal of weak demand from Chinese stainlessindustry. Most disappointing, the bulk of nickel supply demonstrated last year verylow price elasticity. In spite of 60% of global nickel production beingmaking cash losses during 2H2015 the production cuts were surprisinglysmall and came mostly from the Chinese NPI (nickel pig iron) producers (100thousand tons out of 125 thousand tons cuts in China). The reasons for thelack of supply response we believe were: some form of 'sponsorship' of lossmaking nickel operations (such as global diversified miners, governments,downstream integrated producers or strong private financial backers), highbarriers to exit in certain jurisdictions (high rehabilitation/mothballingcosts), low cost of refinancing balance sheets, ample financial liquidityand little propensity of commercial banks to trigger bankruptcies, and,finally, expectations for an imminent recovery of nickel price. At the sametime, we estimate that the nickel consumption last year in China remainedrobust (+3% y-o-y) supported by the output of nickel-intensive 300-seriesstainless steel, which was up 5% y-o-y. Import of both refined nickel andferronickel to China showed a remarkable growth of 130% and 80% y-o-y,respectively, confirming the hypothesis that China domestic nickel marketwas in deficit as lower nickel units production (mainly in the form of NPI)had to be substituted by imported material while the demand was up. Nickel outlook - major production cuts and a substantial drawdown ofexchange inventory are needed to trigger a sustained price recovery We do not believe that the nickel price is sustainable at the spot level inthe long run and we neither see much further downside as the nickel priceis already extremely deep into the cost curve. With USDstrengthening/mining currencies depreciation as well as oil price havingstabilized by now, we believe that further reduction of the cost curveshould end by and large (and thus the lowering of the support for nickelprice). Nickel industry restructuring seems to be picking up pace in 2016. Withsome production cuts (mainly in China) already announced in 2015 andfurther production cuts scheduled in 2016, we also see a substantial amountof high cost nickel operations have been put up for sale. We however feelthat at least some 20-25% of the global supply needs to be cut for thenickel price to enter into a sustained recovery. In 2016, we expect further contraction of NPI capacities in China (byaround 85 thousand tons) driven by high cost, lack of feed and tighteningenvironmental regulations. Significant amount of non-Chinese high-costproducers (with combined capacity of around 200 thousand tons) are also atrisk of shutdowns, with the first closures already announced in thebeginning of the year (Votorantim, Panoramic and Mincor Resources). We expect that global primary nickel consumption should remain unchanged in2016 at approximately 1.9 million tons and the market to develop a deficitof 70-90 thousand tons. As the global nickel exchange inventory runs athistorical highs of approximately 500 thousand tons, we feel that the pricereaction to production cuts could be sticky until a major drawdown ofinventories is materialized. Copper in 2015 -weak Chinese demand and growing output Copper price followed the negative trend in global commodity markets down20% y-o-y to USD 5,494 per tonne in 2015. In January 2016, copper pricefell to a seven-year low of USD 4,300 per tonne. We believe that copperprice was subject to similar global negative setbacks, which affecting bothlowering of cost curve as well as fund outflow from passive commodityinvestors. These were driven by the appreciation of US dollar/depreciationof mining currencies and falling oil price. Supply cuts last year did notsurprise totalling a historical average of approximately 5-6%, while anumber of new major mines continued their ramp up. At the same time,copper consumption in China (accounting for 46% of the world's consumption)was weak. albeit down, copper price showed some resilience relative toother base metals, in part owing to the low level of exchange inventories,which in the past years made copper market highly vulnerable to potentialsupply disruptions above initial disruption allowances as well as possibledemand surprises from China. Copper outlook - neutral We have trimmed our demand outlook for 2016 as uncertainty remains overChina ability to restore the prior year's growth rates in energy gridcapital expenditures. We are also looking at a moderate growth of supply,as we believe that the reduced production at mature mines in Americas andsupply disruptions in Zambia and Congo, may not be sufficient to offsetnegatively the ramp up of a number of major copper projects. Palladium in 2015 - output recovery in South Africa and outflows from ETFsput price under pressure Palladium performance was weak in 2015 with price down 14% to an average ofUSD 691 per ounce as we believe that the metal followed the otherindustrial metals. The metal traded in a quite tight price range of USD670-830 per ounce during almost entire 1H15 up until May, but in 2H15 lostits support and breached USD 530 per ounce level. After a 5-month strike,which paralyzed 20% of global palladium output in 2014, South Africanoutput quickly recovered in 2015 shifting the palladium market fromapparent deficit to a more balanced state. Additional downward pressure onthe palladium price came from ETF holdings, which recorded significantoutflows in 2H 2015 (700 thousand ounces). Palladium outlook - positive, deficit to persist We consider the current weakness in palladium price as temporary. Boomingcar sales in the US and China, where palladium is mostly used for theproduction of auto catalysts for gasoline vehicles, should provide for therobust demand from auto industry in 2016 (+200 thousand ounces). Withpalladium intensity per vehicle higher in the US relative to China owing totighter emission standards and on average larger size of engines, thegrowth of demand for palladium becomes a bit more reliant on the strong USconsumption. An ongoing economic recovery and sustain low oil price shouldstimulate the sales of light vehicles in the US (the latter is especiallyrelevant for price-sensitive large engine SUVs). The outflows frompalladium ETFs significantly slowed down year-to-date, which may imply thetrend reversal. However, as the demand from ETFs is for a physical metal,the former flows are a major swing factor for the palladium market balance.Although South African producers were successful to restore theirproduction to pre-strike levels in 2015, we do not expect any significantproduction growth in 2016 as the low-price environment will curb the growthinvestments and could affect the production at high cost mines. We believethat the risk of supply disruptions due to safety stoppages and labourdisputes continue to be material for South African producers. The risingelectricity tariffs and labour cost continue to contribute to the costinflation. A major offset to these factors came in 2015 from the currencydepreciation in South Africa, which with USD strengthening potentiallyover, may not necessarily provide similar offset to the rising costs in2016. We think that primary palladium supply will decrease by around 4%owing to production cuts in South Africa and the reconfiguration ofdownstream assets in our Company. We also do not expect any sales from theRussian government stockpile, all-in-all expecting palladium market to posta substantial deficit in 2016. Platinum in 2015 - healthy market affected negatively by Chinese sentimentand VW scandal In 2015, platinum price was down 24% y-o-y to an averaging of USD 1,053 perounce. Alongside weakening global commodities, the metal price was down in2H 2015, to below USD 900 per ounce and is currently trading in the rangeof USD 950-1,000 per ounce, the lowest levels since 2008. Fears overChina's potential hardlanding, weak ZAR and expectations for a drop in thedemand for diesel cars following the Volkswagen scandal contributed to theprice weakness. At the same time, we estimate that the real demand for platinum in 2015 washealthy. Primary industrial demand was up 8% y-o-y supported by tighteningemissions legislation in Europe (roll out of Euro 6) and lower recyclingvolumes. All-time high retail investment demand in Japan (+530 thousandounces) more than compensated for the outflows from global platinum ETFs(-320 thousand ounces) Platinum outlook - moderately positive We expect primary platinum consumption to increase 1% y-o-y in 2016 drivenby a moderate growth in automotive industry as well as the recovery injewellery and chemical sectors. Investment demand is anticipated to remainunchanged. We expect a moderate (1%) decline in primary supply driven bylower output by South African producers and downstream reconfiguration atNorilsk Nickel. An upside risk may come from the potential supplydisruptions in South Africa, which may occur as a result of the potentialdisputes between the unions and corporates as the current labour agreementsare expiring in June and up for renegotiations. KEY SEGMENTAL HIGHLIGHTS USD million 2015 2014 Change, %Revenue 8,542 11,869 (28%)Polar Division 6,590 8,937 (26%)Kola MMC 773 1,100 (30%)NN Harjavalta 757 986 (23%)Other metallurgical assets 30 154 (81%)Other non- metallurgical assets 1,182 1,997 (41%)Inter-company eliminations (790) (1,305) (39%)EBITDA 4,296 5,681 (24%)Polar Division 4,429 5,625 (21%)Kola MMC 257 346 (26%)NN Harjavalta 72 70 3%Other metallurgical assets (12) (61) (80%)Other non-metallurgical assets (64) 78 (182%)Corporate expenses (386) (377) 2%EBITDA margin, % 50% 48% 2 p.p.Polar Division 67% 63% 4 p.p.Kola MMC 33% 31% 2 p.p.NN Harjavalta 10% 7% 3 p.p.Other metallurgical assets (40%) (40%) -Other non- metallurgical assets (5%) 4% (9 p.p.) - In 2015, EBITDA of Polar Division decreased by 21% y-o-y and EBITDA of Kola MMC was down 26% y-o-y, to USD 4,429 million and USD 257 million, respectively. The decline was primarily driven by lower metal prices, partly offset by the decrease in cash costs and selling expenses driven by the depreciation of Russian rouble and cancellation of export duties on nickel and copper. - EBITDA of NN Harjavalta remained stable y-o-y and demonstrated a slight increase by 3% to USD 72 million. - Negative EBITDA of the other metallurgical assets reduced by 80% in 2015 following the sale of Tati Nickel in April 2015. - EBITDA of the other non-metallurgical assets decreased by USD 142 million in 2015 primarily due to the lower profits of the Company's sales and distribution arms on the back of decline in metal prices as well as reduced revenue in USD terms from Russian non-core operations due to weakening of Russian rouble. METAL SALES VOLUME BY ORIGIN, CONSOLIDATED REVENUE AND REALIZED PRICES 2015 2014 Change, % Finished products Russian operations Nickel (thousand tons) 197 228 (14%) Copper (thousand tons) 343 356 (4%) Palladium (thousand troy ounces) 2,464 2,667 (8%) Platinum (thousand troy ounces) 590 629 (6%) Finland Nickel (thousand tons) 43 42 2%Semi-products Finland Copper cake, copper, (thousand tons) 1) 13 11 18% Botswana Nickel concentrate, nickel, (thousand tons) 1) 1 3 (67%)Nickel concentrate, copper, (thousand tons)1) 1 2 (50%) South Africa Nickel concentrate, nickel, (thousand tons) 1) 4 - 100%Nickel concentrate, copper, (thousand tons)1) 2 - 100%Metal sales, physical volumes Group, excluding South Africa 2)3) Nickel, (thousand tons) 240 270 (11%)Copper, (thousand tons) 343 356 (4%)Palladium, (thousand troy ounces) 2,464 2,667 (8%)Platinun, (thousand troy ounces) 590 629 (6%)Gold, (thousand troy ounces) 93 136 (32%)Rhodium, (thousand troy ounces) 84 91 (8%)Cobalt, (thousand tons) 5 6 (17%)Silver, (thousand troy ounces) 1,915 2,281 (16%)Semi-products, nickel, (thousand tons) 1) 5 3 67% Semi-products, copper, (thousand tons) 1) 16 13 23%Semi-products, palladium, (thousand troy ounces) 1) 100 78 28%Semi-products, platinum, (thousand troy ounces) 1) 39 31 26%Semi-products, gold, (thousand troy ounces) 1) 9 7 29%Semi-products, silver, (thousand troy ounces) 1) 142 116 22% 2015 2014 Change,% Average realized prices of metals produced byNorilsk Nickel in Russia from its own feed Metal Nickel (USD per tonne) 11,962 17,072 (30%)Copper (USD per tonne) 5 585 6 931 (19%)Palladium (USD per troy ounce) 695 804 (14%)Platinum (USD per troy ounce) 1,057 1,388 (24%)Cobalt (USD per tonne) 26,291 30,040 (12%)Gold (USD per troy troy ounce) 1,162 1,266 (8%)Rhodium (USD per troy ounce) 884 1,139 (22%) Consolidated Revenue (USD million)Nickel 3,010 4,636 (35%)Copper 1,916 2,468 (22%)Palladium 1,807 2,221 (19%)Platinum 631 869 (27%)Semi-products 193 221 (13%)Other metals 326 481 (32%) Revenue from metal sales 7,883 10,896 (28%)Revenue from other sales 659 973 (32%)Total revenue 8,542 11,869 (28%) 1) Volumes are stated in respect of metal content in semi-product.2) The operating results of Nkomati Nickel Mine (South Africa) are shown inthe financial statements based on Group's 50% ownership and are reported asoperating results of associates. 3) All information is reported on the basis of 100% ownership ofsubsidiaries, excluding sales of metals purchased from third parties. Nickel Nickel remained the largest contributor to the Company's revenue comprisinga 38% of total metal sales in 2015 down from 43% in 2014 as nickel pricefell the most within the Company's commodity basket and so did the sales ofthe physical metal owing to the one-off allocation of saleable metal intometal reserves. In 2015, the nickel revenue decreased by 35% y-o-y (or USD 1,626 million)to USD 3,010 million primarily due to lower nickel price (-USD 1,325million) and decrease in nickel sales volumes (-USD 372 million).Additional revenue of USD 71 million came from the sale of nickel purchasedfrom third parties to meet contractual obligations with strategiccustomers. The average realized nickel price of metal produced in Russia from own feeddecreased by 30% y-o-y from USD 17,072 per tonne to USD 11,962 per tonne. Sales volume of nickel produced by Norilsk Nickel in Russia from own feeddecreased 12% y-o-y (or 27 thousand tons) from 222 thousand tons to 195thousand tons. The decrease in sales volumes was driven by lower production(-3 thousand tons) and accumulation of temporary metal stock to smooth outthe transition to the new configuration of smelting and refining capacities(shutdown of Nickel Plant, increased shipments of nickel matte forprocessing to Kola MMC and to Harjavalta in Finland) scheduled in 2016,which is expected to result in a one-off increase in work-in-progress intransit and lower output of saleable metals. The amount of nickel sales from purchased semi-products were down by 4thousand tons following the reduction of low-margin tolling operations atKola MMC. Sales volume of nickel produced by Norilsk Nickel Harjavalta increased by2% y-o-y to 43 thousand tons in 2015 driven by a marginal increase of thirdparty nickel concentrate processing under tolling arrangements andprocessing of Russian feed. Copper In 2015, copper sales accounted for 24% of the Company's total metal sales,down 22% y-o-y (or USD 552 million) from USD 2,468 million to USD 1,916million primarily due to the lower average realized copper price (-USD 477million) and decrease in sales volumes (-USD 75 million). The average realized copper price was down 19% y-o-y from USD 6,931 to USD5,585 per tonne. Physical volume of copper sales from Russian feed decreased by 7 thousandtons to 340 thousand tons in 2015, while the copper production was up 2%that year. The decrease in sales volumes was driven primarily by theone-off allocation of saleable metal into metal reserves, created to smoothout the transition to the new configuration of smelting and refiningcapacities (shutdown of Nickel Plant, increased shipments of nickel mattefor processing to Kola MMC and to Harjavalta in Finland) scheduled in 2016,which is expected to result in a one-off increase in work-in-progress intransit and lower output of saleable metals. Sales of copper produced from third party materials declined by 6 thousandtons from 9 thousand to 3 thousand tons in 2015. This was primarily drivenby reduction of low-margin tolling operations at Kola MMC. Palladium In 2015, palladium sales accounted for 23% of the Group's total metalrevenue. The Group's palladium revenue decreased by 19% (or by USD 414million) from USD 2,221 million to USD 1,807 million in 2015. This wasdriven by both the decrease in palladium sales volumes (-USD 141 million)and lower realized palladium price (-USD 289 million). Additional USD 95million of palladium revenue in 2015 came from the re-sale of metalpurchased in the open market to fulfil the Company's contractualobligations comparing to USD 79 million in 2014. Sales of palladium produced in Russia decreased by 19% y-o-y from USD 2,084million to USD 1,691 million. The decline was driven by both lower realizedpalladium price (down 14% y-o-y) from USD 804 per troy ounce in 2014 to USD695 per troy ounce in 2015 and reduced sales volumes of palladium (down 6%y-o-y) in 2015 primarily by the one-off allocation of saleable metal intometal reserves. Platinum In 2015, platinum sales accounted for 8% of the Group's total metal sales.The platinum revenue reduced by 27% y-o-y (USD 238 million) from USD 869million in 2014 to USD 631 million in 2015 primarily due to the reductionof platinum sales volume (by USD 41 million) and the platinum price (by USD205 million). In 2015, in order to fulfil contractual obligations, theCompany realized platinum purchased from third parties for a considerationof USD 8 million. The revenue from platinum produced in Russia decreased 26% y-o-y from USD827 million to USD 609 million in 2015. The reduction was driven by a 24%y-o-y decline in the average realized platinum selling price (from USD1,388 per troy ounce in 2014 to USD 1,057 per troy ounce in 2015) as wellas the one-off allocation of saleable metal into metals reserve (fordetails see above). Other metals The revenue from other metals was down 32% y-o-y (or by USD 155 million) toUSD 326 million due to the decline in revenue from sale of gold (-38%),cobalt (-28%), rhodium (-27%) and silver (-30%) driven lower physicalvolumes (USD 77 million) and realized price (USD 78 million). Semi-products In 2015, the revenue from the sales of semi-products (copper cake andnickel concentrate) decreased by 13% y-o-y (or USD 28 million) to USD 193million, and accounted for 2% of the Group's total metal sales revenue. Thedecrease was mainly driven by lower realized prices and the divestiture ofTati Nickel. OTHER SALES In 2015, the revenue from other sales decreased by 32% y-o-y to USD 659million mainly due to Russian rouble depreciation against US dollar (anegative impact of USD 325 million) as major part of these operations arenominated in Russian Roubles. The decrease of other sales was additionally driven by lower sales innon-core operations, of which largest negative factor was a USD 36 millionreduction in revenue from fuel and gas condensate sales on the back oflower market prices. COST OF METAL SALES Cost of metals sales In 2015, the cost of metal sales decreased 34% y-o-y (or USD 1,626 million)to USD 3,179 million owing to: - Reduction of cash operating costs by USD 1,056 million (or 26% y-o-y); - Decrease in depreciation charges by USD 222 million (or 32% y-o-y); - Effect of comparative change in metal inventories by USD 348 million. Cash operating costs In 2015, total cash operating costs decreased 26% y-o-y (or USD 1,056million) to USD 3,011 million owing to: - The effect of Russian rouble depreciation against US dollar (cost reduction impact of USD 1,109 million); - Decrease in the costs of metals for resale, raw materials and semi-products (reduction by USD 111 million). The cost reduction was negatively offset by: - Increase of cash operation costs in local currency due to inflation (USD 131 million); - Increase of other expenses (USD 33 million). The allocation of cash operating cost between main productions units in2015 was as follows: - Russia - 77%; - Finland (NN Harjavalta) - 22%; - Norilsk Nickel International - 1%. USD million 2015 2014 Change, %Cash operating costs Labour 1,131 1,536 (26%) Metals for resale, raw materials and semi-products 718 829 (13%) Materials and supplies 450 537 (16%) Third-party services 186 403 (54%) Mineral extraction tax and other levies 117 194 (40%) Electricity and heat energy 131 191 (31%) Fuel 66 128 (48%) Transportation expenses 75 87 (14%) Sundry costs 137 162 (15%) Cash operating costs 3,011 4,067 (26%) Amortisation and Depreciation 476 698 (32%) Decrease/(increase) in metal inventories (308) 40 (9x) Total cost of metal sales, 3,179 4,805 (34%)including: Russian operations 2,320 4,120 (44%) NN Нarjavalta 827 485 71% NN International 32 200 (84%) Labour The share of labour costs remained unchanged at 38% of the Group's totalcash operating costs. In 2015, labour costs amounted to of USD 1,131million decreasing 26% y-o-y (USD 405 million) driven by a: - USD 559 million reduction owing to the Russian rouble depreciation against US dollar; and partly offset by a: - USD 154 million increase owing to indexation of RUB-denominated wages and salaries of production employees in Russia (USD 97 million) as well by the growth in the headcount by 2%. Purchases of metals for resale and semi-products Expenses on the acquisition of metals for resale and semi-products forprocessing decreased by 13% y-o-y (USD 111 million) to USD 718 million in2015 mainly due to: - lower metal prices and changes in the structure of the purchased raw materials (reduction by USD 258 million); - higher volume of raw materials purchased from third parties for refining at NN Harjavalta and BCL (increase by USD 59 million); - USD 88 million increase in metals purchased for resale driven primarily by allocation of saleable metal into metal reserves to smooth out the transition to new downstream configuration in 2016. Materials and supplies Materials and supplies expenses decreased 16% y-o-y (USD 87 million) to USD450 million driven by the following: - USD 196 million decrease due to Russian rouble depreciation against US Dollar; - USD 109 million cash costs increase at Russian operations, mainly due to the price inflation (USD 32 million) and increase in expenses related to the modernization of Nadezhda metallurgical plant (purchases of spare parts for hydrometallurgy equipment) as well as purchase of spare parts for mining equipment. Outsourced third party services In 2015, the cash costs of third party services decreased 54% y-o-y (USD217 million) to USD 186 million driven by the following: - USD 110 million decrease due to the Russian rouble depreciation against US Dollar; - USD 79 million decrease due to the divestiture of Tati Nickel in April 2015; - USD 37 million decrease of expenses related to tolling services following the termination of concentrate processing contract with Boliden on July 1, 2015; - USD 9 million increase in expenses related to other services. Mineral extraction tax and other levies Mineral extraction tax and environmental levies decreased by 40% y-o-y (USD77 million) to USD 117 million in 2015 as a result of: - USD 71 million decrease due to depreciation of Russian rouble against US Dollar; - USD 6 million decrease due to changes in tax legislation on mineral extraction tax rate (for natural gas by 4.7 times and for gas condensate by 1.2 times). Electricity and heat energy In 2015, energy costs decreased by 31% y-o-y (USD 60 million) to USD 131million primarily due to depreciation of Russian rouble against US Dollar(USD 54 million). Fuel expenses Fuel expenses decreased by 48% y-o-y to (USD 62 million) to USD 66 millionin 2015 primarily driven by the following: - USD 46 million decrease owing to the Russian rouble depreciation against US Dollar; - USD 16 million decrease in fuel expense at Russian production assets, mainly due to the reduction in oil price. Transportation expenses In 2015, transportation costs decreased 14% y-o-y (USD 12 million) to USD75 million mainly driven by the depreciation of Russian rouble against USdollar. Sundry costs In 2015, sundry costs decreased by 15% y-o-y (USD 25 million) to USD 137million mainly driven by the depreciation of Russian rouble against USdollar. Amortisation and depreciation In 2015, amortisation and depreciation of production assets decreased by32% y-o-y (USD 222 million) to USD 476 million owing to the following factors: - USD 253 million reduction attributable to Russian rouble devaluation against US Dollar; - USD 29 million increase of depreciation charges mainly due to increased additions of mining assets in 2014-2015 (USD 34 million), which was partly offset by the sale of Tati Nickel Mining Company in April 2015. Increase of metal inventories In 2015, the Company's refined metals and work-in-progress increased by USD308 million, primarily due to the following: - USD 297 million increase in refined metals owing to the one-off allocation of saleable metal into metal reserves, created to smooth out the transition to the new configuration of smelting and refining capacities (shutdown of Nickel Plant, increased shipments of nickel matte for processing to Kola MMC and to Harjavalta in Finland) scheduled in 2016, which is expected to result in a one-off increase in work-in-progress in transit and lower output of saleable metals; - USD 11 million increase of work-in-progress materials, primarily due to: - USD 106 million - growth in work-in-progress at Russian production assets, related to accumulation of matte in transit, caused by the ongoing reconfiguration of smelting and refining facilities; - USD 95 million decrease in semi-products stock mainly owing to its processing at Harjavalta nickel refinery. COST OF OTHER SALES In 2015, cost of other sales decreased by 32% y-o-y (USD 277 million) toUSD 592 million due to the following factors: - USD 321 million decrease owing to the Russian rouble depreciation against US Dollar; - USD 44 million increase in costs, primarily due to the indexation of wages and salaries in Russia . Gross profit margin of other sales in 2015 was unchanged at 10% (versus 11%in 2014). SELLING AND DISTRIBUTION EXPENSES USD million 2015 2014 Change, % Export customs duties 88 225 (61%) Labour 19 23 (17%) Marketing 15 66 (77%) Transportation expenses 8 15 (47%) Other 9 6 50% Total 139 335 (59%) Selling and distribution expenses decreased by 59% y-o-y (USD 196 million)to USD 139 million in 2015 due to the following factors: - USD 18 million decrease owing to the depreciation of Russian rouble against US dollar; - USD 137 million decrease of export duties primarily driven by the cancellation of nickel and copper export duties in Russia from August 21, 2014. - USD 51 million decrease in marketing and advertising expenses due to cost reduction related to global marketing campaigns. GENERAL AND ADMINISTRATIVE EXPENSES USD million 2015 2014 Change, %Labour 352 465 (24%)Third party services 55 111 (50%)Taxes other than mineral extraction tax and income tax 54 98 (45%)Amortization and depreciation 19 27 (30%)Rental expenses 19 10 90%Transportation expenses 4 16 (75%)Other 51 85 (40%)Total 554 812 (32%) In 2015, general and administrative expenses decreased 32% y-o-y (USD 258million) to USD 554 million mostly driven by the Russian roubledepreciation effect of USD 266 million. Labour costs decreased by 24% y-o-y (USD 113 million) to USD 352 millionmainly as results of the Russian rouble depreciation against USD. Rental expenses increased by USD 9 million in 2015 primarily due to therelocation of the Company's head office from its own premises to a leasedbuilding. Taxes other than mineral extraction and income tax decreased by USD 44million in 2015 owing to the Russian rouble depreciation against USD. FINANCE COSTS USD million 2015 2014 Change,%Interest expense on borrowings net of amounts 281 135 108%capitalizedUnwinding of discount on environmental 44 43 2%obligationsOther 1 1 -Total 326 179 82% In 2015, increase in finance costs by 82% y-o-y to USD 326 million wasmostly driven by higher interest expense on borrowings net of amountscapitalized due to new borrowings made by the Company in 2014-2015. INCOME TAX EXPENSE In 2015, income tax expense decreased by 20% y-o-y to USD 528 milliondriven mostly by lower revenue, Russian rouble depreciation against USdollar and accumulated taxable loss on investments in shares of Inter RAO. The effective income tax rate in 2015 amounted to 24%, which was above thestatutory tax rate of 20% in Russia. This was primarily driven by thecumulative effect of recognition of non-deductible loss from disposal ofassets held-for-sale, allowance for deferred tax assets and effect ofdifferent tax rates of subsidiaries operating in other jurisdictions. Theseeffects were partly offset by the utilization of previously unrecognizeddeferred tax asset. Income tax expense attributed to geographical jurisdictions in 2015: USD million 2015Current income tax expense 506Deferred tax expense 22Total 528 USD million 2015Russian Federation 490Finland 14Rest of world 2Total 528 EBITDA USD million 2015 2014 Change, %Operating profit 3,506 4,746 (26%)Amortization and depreciation 506 805 (37%)Impairment of PP&E 284 130 118%EBITDA 4,296 5,681 (24%)EBITDA margin 50% 48% 2 p.p. In 2015, EBITDА decreased by 24% y-o-y (USD 1,385 million) to USD 4,296million with EBITDA margin amounting to 50% (up from 48% in 2014). For adetailed analysis of EBITDA changes please see investor presentation(available on the Company's internet site). NET PROFIT BEFORE IMPAIRMENT CHARGES AND FOREIGN EXCHANGE LOSSESRECONCILIATION USD million 2015 2014 Change,%Net profit 1,716 2,000 (14%)Impairment of PP&E 284 130 118%Impairment of available for sale investments - 244 (100%)Foreign exchange loss 865 1,594 (46%)Loss/(gain) from disposal of subsidiaries and 302 213 42%assets classified as held for saleNet profit before impairment charges and 3,167 4,181 (24%)foreign exchange losses STATEMENT OF CASH FLOWS USD million 2015 2014 Change,%Cash generated from operations before changes 4,489 5,770 (22%)in working capital and income taxMovements in working capital (112) 1,002 (111%)Income tax paid (672) (825) (19%)Net cash generated from operating activities 3,705 5,947 (38%)Capital expenditure (1,654) (1,298) 27%Other investing activities 354 76 4хNet cash used in investing activities (1,300) (1,222) 6%Net cash used in financing activities (998) (2,979) (66%)Effects of foreign exchange differences on (113) (578) (80%)balances of cash and cash equivalentsOther (33) 4 (9х)Net increase in cash and cash equivalents 1,261 1,172 8% In 2015, net cash generated from operating activities decreased 38% y-o-yto USD 3.7 billion owing to the following factors: - USD 1,385 million EBITDA decrease driven primarily by lower realized metal prices; - Accelerated reduction of working capital in 2014 by (USD 1 billion) as compared with a USD 112 million increase in working capital in 2015. BALANCE SHEET AND CASH FLOW WORKING CAPITAL RECONCILIATION USD million 2015 2014Change of the net working capital in the balance sheet, 57 1,935 less:Foreign exchange differences (357) (859)Change in income tax payable 89 103Changes of working capital within assets held for sale 12 (6)Non-cash changes, including reserves 87 (171)Change of working capital per cash flow (112) 1,002 CAPEX BREAKDOWN BY PROJECT USD million 2015 2014 Change,%Polar Division, including: 989 788 26% Skalisty mine 256 122 110% Taymirsky mine 72 68 6% Komsomolsky mine 45 73 (38%) Oktyabrsky mine 70 85 (18%) Talnakh enrichment plant 257 171 50% Nickel plant closure 61 25 144% Kola MMC 118 106 11% Chita copper project (Bystrinsky project) 107 89 20% Other production projects 408 288 42% Other non-production assets 4 6 (33%) Intangible assets 28 21 33% Total 1,654 1,298 27% CAPEX increased 27% y-o-y (USD 356 million) in 2015. The increase wasdriven mainly by the acceleration of Skalisty mine development schedule,ongoing reconstruction of Talnakh enrichment plant, the construction of theBystrinsky project as well as the preparations for the shutdown of Nickelplant scheduled for 2016. DEBT AND LIQUIDITY MANAGEMENT USD million As of December As of December Change, Change,% 31 2015 31 2014 USD millionLong-term 7,142 5,678 1,464 26%Short-term 1,124 652 472 72%Total debt 8,266 6,330 1,936 31%Cash and cash 4,054 2,793 1,261 45%equivalentsNet debt 4,212 3,537 675 19%Net debt/ 12M EBITDA 1.0x 0.6х 0,4x As of December 31, 2015, the Company's total debt increased 31% y-o-y (USD1,936 million) to USD 8,266 million. Short-term debt increased by USD 472million to USD 1,124 million, while long-term debt increased by USD 1,464million to USD 7,142 million. As a result, the proportion of short-termdebt in the total debt portfolio increased from 10% to 14% as of December31, 2015. Net debt increased 19% y-o-y (USD 675 million) to USD 4,212 million. Netdebt/EBITDA ratio increased to 1.0x. In 2015, the Company continued the debt portfolio optimization in line withthe Group financial policy. In particular, the Company entered into anumber of long-term financing agreements with local and international bankstotaling approximately USD 1,650 million. New unsecured committed creditline agreements were concluded for the total of USD 1,350 million,resulting in increase of the total limit of available committed creditlines to USD 1,795 million. In October, 2015 the Company issued 7-yearEurobonds for the total amount of USD 1,000 million. These initiatives increased the average maturity of the Company's debtportfolio, smoothened the repayment schedule, balanced the debt currencybreakdown and diversified the sources of financing. As of the end of the 2015 the Company' credit ratings, assigned by Standard&Poor's and Fitch rating agencies remained at an investment grade level(ВВВ-, ВВВ-). The Company's credit rating assigned by Moody's was at Ba1level, below investment grade as a result of the lowering of Russia's'sovereign ceiling' to sub-investment grade by this agency. Attachment A CONSOLIDATED INCOME STATEMENTFOR YEAR ENDED 31 DECEMBER 2015 US Dollars million Year Year ended ended 31/12/ 31/12/ 2015 2014 Revenue Metal sales 7,883 10,896Other sales 659 973 Total revenue 8,542 11,869 Cost of metal sales (3,179) (4,805)Cost of other sales (592) (869) Gross profit 4,771 6,195 General and administrative expenses (554) (812)Selling and distribution expenses (139) (335)Impairment of property, plant and equipment (284) (130)Other net operating expenses (288) (172) Operating profit 3,506 4,746 Foreign exchange loss, net (865) (1,594)Finance costs (326) (179)Loss from disposal of subsidiaries and assetsclassified as held for sale (302) (213)Income from investments, net 215 94Share of profits of associates 16 50Impairment of available for sale investmentsincluding impairment losses reclassified fromother comprehensive income - (244) Profit before tax 2,244 2,660 Income tax expense (528) (660) Profit for the year 1,716 2,000 Attributable to:Shareholders of the parent company 1,734 2,003Non-controlling interests (18) (3) 1,716 2,000EARNINGS PER SHARE Basic and diluted earnings per shareattributable to shareholders of the parentcompany (US Dollars per share) 11.0 12.7 Attachment B CONSOLIDATED STATEMENT OF FINANCIAL POSITIONAS AT 31 DECEMBER 2015US Dollars million ASSETS 31/12/2015 31/12/2014Non-current assets Property, plant and 6,392 7,011equipmentIntangible assets 50 43Investment property 83 -Investments in - 17associatesOther financial assets 62 204Other taxes receivable - 6Deferred tax assets 42 53Other non-current assets 117 130 - 6,746 7,464Current assets Inventories 1,698 1,726Trade and other 167 275receivablesAdvances paid and 55 63prepaid expensesOther financial assets 1 87Income tax receivable 234 127Other taxes receivable 199 178Cash and cash 4,054 2,793equivalents 6,408 5,249Assets classified as 217 436held for sale 6,625 5,685 TOTAL ASSETS 13,371 13,149 EQUITY AND LIABILITIES Capital and reserves Share capital 6 6Share premium 1,254 1,254Treasury shares (196) -Translation reserve (5,348) (4,787)Retained earnings 6,523 8,295 Equity attributable to 2,239 4,768shareholders of theparent companyNon-controlling 22 25interests 2,261 4,793Non-current liabilities Loans and borrowings 7,142 5,678Provisions 357 274Deferred tax liabilities 205 216Other long-term 30 6liabilities 7,734 6,174Current liabilities Loans and borrowings 1,124 652Trade and other payables 1,008 908Dividends payable 698 4Employee benefit 215 252obligationsProvisions 205 156Derivative financial 2 5instrumentsIncome tax payable 5 23Other taxes payable 95 99 3,352 2,099Liabilities associated 24 83with assets classifiedas held for sale 3,376 2,182 TOTAL LIABILITIES 11,110 8,356 TOTAL EQUITY AND 13,371 13,149LIABILITIES Attachment C CONSOLIDATED STATEMENT OF CASH FLOWSFOR THE YEAR ENDED 31 DECEMBER 2015 US Dollars million Year ended 31/ Year ended 31/ 12/2015 12/2014 OPERATING ACTIVITIES Profit before tax 2,244 2,660 Adjustments for:Depreciation and amortisation 506 805Impairment of property, plant and 284 130equipmentImpairment of available for sale - 244investmentsLoss on disposal of property, plant and 20 28equipmentShare of profits of associates (16) (50)Loss from disposal of assets classified 302 213as held for saleChange in provisions and allowances 120 69Finance costs and income from 137 85investments, netForeign exchange loss, net 865 1,594Other 27 (8) 4,489 5,770Movements in working capital:Inventories (340) 94Trade and other receivables 74 237Advances paid and prepaid expenses (2) (7)Other taxes receivable (62) 162Employee benefit obligations 42 (16)Trade and other payables 152 515Provisions (4) (21)Other taxes payable 28 38 Cash generated from operations 4,377 6,772 Income tax paid (672) (825) Net cash generated from operating 3,705 5,947activities INVESTING ACTIVITIES Proceeds from sale of associate 10 -Purchase of property, plant and equipment (1,626) (1,277)Purchase of other financial assets - (9)Purchase of intangible assets (28) (21)Purchase of other non-current assets (31) (35)Loans issued (27) -Net change in deposits placed 91 (106)Proceeds from sale of other financial 204 91assetsProceeds from disposal of property, 1 20plant and equipmentProceeds from disposal of assets - 24classified as held for saleInterest received 101 88Dividends received 5 3 Net cash used in investing activities (1,300) (1,222) CONSOLIDATED STATEMENT OF CASH FLOWSFOR THE YEAR ENDED 31 DECEMBER 2015 (CONTINED) US Dollars million Year ended Year ended 31/12/2015 31/12/2014 FINANCING ACTIVITIES Proceeds from loans and borrowings 3,192 1,916Repayments of loans and borrowings (727) (1,343)Financial lease payments (1) -Dividends paid (2,859) (3,281)Interest paid (376) (259)Buy-out of non-controlling interest (31) (12)Acquisition of own shares from shareholders (196) - Net cash used in financing activities (998) (2,979) Net increase in cash and cash equivalents 1,407 1,746 Cash and cash equivalents at beginning of the 2,793 1,621period Cash and cash equivalents of disposal group at 5 9beginning of the periodLess: cash and cash equivalents of disposal (38) (5)group at end of the periodEffects of foreign exchange differences on (113) (578)balances of cash and cash equivalents Cash and cash equivalents at end of the period 4,054 2,793 Attachment D NET WORKING CAPITAL incl. Effects of 31.12.2- 31.12.2- foreign exchangeUS Dollars million 015 014 Change differences Finished goods 541 389 152 (105) Work-in-process 605 787 (182) (155) Semi-products 58 - 58 (5) Other inventories 494 550 (56) (147) Trade and other 167 275 (108) (26)receivables Advances paid and 55 63 (8) (15)prepaid expenses Taxes receivable 433 305 128 (85) Employee benefit (215) (252) 37 59obligations Trade and other (1,008) (908) (100) 100payables Taxes payable (100) (122) 22 22 Total 1,030 1,087 (57) (357) --------------------------------------------------------------------------- 15-March-2016 The EquityStory.RS, LLC Distribution Services includeRegulatory Announcements, Financial/Corporate News and Press Releases.Media archive at www.dgap.de/ukreg --------------------------------------------------------------------------- Language: English Company: MMC Norilsk Nickel 1 st Krasnogvardeysky av., 15 123100 Moscow Russia Internet: www.nornik.ru ISIN: US55315J1025 WKN: A140M9 Listed: Regulated Unofficial Market in Berlin, Dusseldorf, Munich, Stuttgart; Open Market in Frankfurt ; London, Nasdaq Category Code: ACS TIDM: MNOD Sequence Number: 3050 Time of Receipt: 15-March-2016 / 09:27 CET/CEST End of Announcement EquityStory.RS, LLC News Service --------------------------------------------------------------------------- 445091 15-March-2016UK-Regulatory-announcement transmitted by DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.