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ALROSA Investor Presentation Sberbank CIB Russia: The Inside Track One-on-One Conference Moscow, 4-5 June 2019 Disclaimer For notes es: The below applies to the presentation (the Presentation) following this important notice, and


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SLIDE 1

Moscow, 4-5 June 2019

ALROSA Investor Presentation

Sberbank CIB “Russia: The Inside Track” One-on-One Conference

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SLIDE 2

Disclaimer

For notes es:

The below applies to the presentation (the “Presentation”) following this important notice, and you are therefore advised to read this important notice carefully before reading, accessing or making any other use of this Presentation. This Presentation contains statements about future events and expectations that are forward-looking statements. Any statement herein (including, without limitation, a statement regarding our financial position, strategy, management plans and future objectives) that is not a statement of historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and

  • ther factors which may cause ALROSA’s actual results, performance or achievements to be materially different from any future

results, performance or achievements expressed or implied by such forward-looking statements. Past performance should not be taken as an indication or guarantee of future results, and no representation or warranty, express or implied, is made regarding future

  • performance. The information and opinions contained in this document are provided as at the date hereof (unless indicated
  • therwise) and are subject to change without notice. ALROSA assumes no obligation to update, supplement or revise the forward-

looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements. This Presentation does not constitute or form part of and should not be construed as, an offer to sell or issue or the solicitation of an

  • ffer to buy or acquire any securities in any jurisdiction or an inducement to enter into any investment activity. The contents hereof

should not be construed as investment, legal, tax, accounting or other advice, and investors and prospective investors in securities of any issuer mentioned herein are required to make their own independent investigation and appraisal of the business and financial condition of such issuer and the nature of the securities and consult their own advisers as to legal, financial, tax and other related matters. This Presentation has not been independently verified. No representation or warranty or undertaking, express or implied, is made as to the accuracy, completeness or fairness of the information or opinions contained in this Presentation. None of ALROSA nor any of its shareholders, directors, officers or employees, affiliates, advisors, representatives nor any other person accepts any liability whatsoever for any loss howsoever arising from any use of this Presentation or its contents or otherwise arising in connection

  • therewith. No reliance may be placed for any purpose whatsoever on the information contained in this Presentation or on its

completeness, accuracy or fairness. This Presentation is not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction. Persons in whose possession this Presentation and/or such information may come are required to inform themselves thereof and to observe such restrictions. Some figures included in this Presentation have been subject to rounding adjustments. By reviewing and/or attending this Presentation you acknowledge and agree to be bound by the foregoing.

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SLIDE 3

Table of Content

  • 01. About ALROSA – strategic priorities
  • 02. Market fundamentals
  • 03. Executing to strengthen our business
  • 04. Q1 2019 results
  • 05. Corporate governance
  • 06. Appendix

p.4 p.11 p.22 p.38 p.47

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SLIDE 4

ABOUT ALROSA STRATEGIC PRIORITIES

01

slide-5
SLIDE 5 Angola la Aust stralia lia Botsw swana Canada Arkhangelsk Region Republic of Sakha (Yakutia) Namibia ia South th Afric ica Russ ssia ian Federatio ion

5

  • 01. Strategic priorities
  • 05. Corporate governance
  • 04. Q1 2019 results
  • 03. Executing to strengthen
  • ur business
  • 02. Market fundamentals

Leading Position on the Market

… where about 70% of global rough diamond output is controlled by BIG-3: ALROSA, De Beers and Rio Tinto

The global diamond reserves base is highly concentrated with the top 10 countries by reserves volume accounting for over 95% of total reserves.

Core e diamo amond mines of the e BIG-3 market ket lead ader ers Countrie ies with th the e lar arges est t diam amond reserves ves

45% 45% 35% 35% 8% 8% 7% 7% 5% 5%

Russia Africa Canada Australia Other

About 70% of global l rough diamo amond output tput is att ttrib ibutable le to BIG-3

26% ALROSA OSA 25% De Beers 13% Rio Tinto 5% Catoca1 3% Petra Diamonds 28% Other

143 m ct

Sources: Company’s analysis, Kimberley Process statistics, De Beers and Rio Tinto company data, AWDC Bain report “The Global Diamond Industry 2018”.

  • 1. At the moment ALROSA owns 32.8% stake.
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SLIDE 6

6

Sources: Source: Companies data, AWDC Bain report “The Global Diamond Industry 2018”.

ALROSA’s assets geography

High Quality Assets

1,064 m ct Total resources,

including reserves

628 m ct Total reserves

Angola

ALROSA owns 41%3 of Catoc

  • ca Ltd

d (Angol gola) a) Open en-pi pit mining from

  • m 8 mines

es in 2018 Under ergrou

  • und

nd mining ng from

  • m 3 mines

es in 2018 Alluvial al mining ng from

  • m

alluvial deposi posits in 2018

53% 23% 24% Republi lic of Sakha (Yakutia ia) Arkhangelsk elsk Regio ion

Russia ian Federa erati tion

90% 90% 10% 10%

53% 21% 42% 39% AL ALROSA Peer r 1 Peer r 2 Peer r 3

2014 2015 2016 2017 2018

  • ALROSA develops world’s largest reserves with strong cost/quality

balance allowing to achieve the highest EBITDA margin in the industry

  • Strong diamond yields delivery of 0.91 ct/t in 2018
  • Profitability of assets is one of the highest among peers on a sustainable

level

ALROSA sustain inab ably ly tops the ranks s as one of the most profit itab able le miners

EBITDA margin, %

1
  • 01. Strategic priorities
  • 05. Corporate governance
  • 04. Q1 2019 results
  • 03. Executing to strengthen
  • ur business
  • 02. Market fundamentals
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SLIDE 7

54% 30% 4% 1% 11%

Focus on Responsible Mining

7

  • Improving industrial safety with focus on prevent

ventio ion

  • Structural reform promot

motin ing a cultur lture e of safety ety

  • Diagnostic and treatment services aimed to promo
  • mote

te disclosur losure e and reduce ce illnes esses es

RUB 6 bn1:

Support to Local Communities

  • Corporate pension fund
  • Indigenous people traditions
  • Culture & sports

RUB 5.2 bn1:

Capex on Environmental Activities

  • Reduce

ce CO2 2 emissions

  • Maintain high share – at least 86% - of clean

an (incl. renewables) electricity and heat consumption

Charity expenses Local infrastructure Healthcare Education Other expenses

Health & Safety Social Environment People of ALROSA

Source: Company data and analysis.

  • 1. Based on 2018 figures, excl. sponsorship and social infrastructure maintenance.
  • 01. Strategic priorities
  • 05. Corporate governance
  • 04. Q1 2019 results
  • 03. Executing to strengthen
  • ur business
  • 02. Market fundamentals
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SLIDE 8

0.22 0.5 1.6 1.9 6.3 8.7

DPA Power Metals & Mining Transportation Utilities / Construction

Employee Safety is Our Top Priority

Strong Commitment to Promote a Culture of Safety and Reduce the Number of Accidents

8

Source: Company data and analysis.

  • 1. Based on S&P Global: “The Diamond Producers Association Final Results Workshop”.
  • 2. ALROSA’s LTIFR as of 2018, peers’ LTIFR as of 2016.

HSE committees at all management levels Tailored reporting system to ensure prompt detection and response to incidents HSE supervision at each stage of production chain Revised HSE Policy New approach to control the flow of production Regular HSE education and training sessions

Lost Time Injury Frequency Rate per 200,000 hours

One of t the lowest st LTIFR R compar pared ed to the diamo mond nd industr stry y and other er sector

  • rs1

Structural ural changes s Procedures

  • 01. Strategic priorities
  • 05. Corporate governance
  • 04. Q1 2019 results
  • 03. Executing to strengthen
  • ur business
  • 02. Market fundamentals
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SLIDE 9

Superior TSR Compared to Global Peers

9

Source: Bloomberg. Note: Luxury Goods Producers index includes LVMH, Hermes, Richemont, Kering, Swatch, Prada, Tiffany, Tapestry, Burberry, Ralph Lauren, Capri, Moncler and Tod‘s; Diversified Miners, incl. other diamond producers, index includes Anglo American, Rio Tinto, BHP, Glencore, Vale, Gem Diamonds, Petra Diamonds, Lucara Diamond Corp., Firestone Diamonds, Mountain Province Diamonds and Stornoway Diamond Corp. All indices are weighted by market cap on a daily basis.

0% 0% 50% 100% 150% 200% Oct- Oct-13 Mar-14 Aug Aug-14 Jan Jan-15 Jul- Jul-15 De Dec- c-15 May-16 Oct- Oct-16 Ap Apr-17 Sep Sep-17 Feb Feb-18 Jul- Jul-18 Jan Jan-19 Jun- Jun-19

Diversified miners, incl.

  • ther diamond

producers

+65.9%

+7.3%

ALROSA

Luxury goods producers +54.4%

Cumulati lative ve total al USD TSR since e ALROSA IPO in October ber 2013, 3, %

  • 01. Strategic priorities
  • 05. Corporate governance
  • 04. Q1 2019 results
  • 03. Executing to strengthen
  • ur business
  • 02. Market fundamentals
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SLIDE 10

Developing Efficient Organisation...

Journey Ahead

10 …to Maximise Free Cash Flow and Shareholder Returns

…and Taking Advantage of Strong Market Fundamentals…

Focus on Core Business and Efficiency Prudent Capital Allocation Conservative Financial Policy Unique Product Growing Demand Declining Supply

  • 01. Strategic priorities
  • 05. Corporate governance
  • 04. Q1 2019 results
  • 03. Executing to strengthen
  • ur business
  • 02. Market fundamentals
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SLIDE 11

MARKET FUNDAMENTALS

02

slide-12
SLIDE 12

Market rket size 32% 32% 31% 31% 8% 8% 15% 15% 9% 9% 5% 5% 260 260 1,171 71 495 190 71 50 41 41 23

Person rsonal luxu xury ry Lu Lux cars rs Hospi

  • spitality

Fine wines Fine foo

  • od

Fine art rt Desi sign gner furn rniture re Jets & s & ya yachts Tota Total 2018E

Key Demand Drivers

12

 Luxury market valued at c. €1.2 bn is steadily growing  Jewelry demand comprises 7% of global luxury market, and 31% of the personal luxury (annual growth 5%)  Most dynamic growth is concentrated in Asia incl. Japan and China  Diamond jewelry consumption is correlated with USA GDP and disposable income

Highlights

3% 5% 6% 9% 20% 0%

Europe America mericas Japan Japan Res Rest o t of A Asia ia China China Ro RoW

Global al luxury y mark rket breakd kdow

  • wn in 2018E

€ bn

Source: Bain’s luxury goods worldwide market study (November 2018)

  • 1. Trends at constant exchange rates.

Person

  • nal

al luxury marke ket growth1 by region 2018E

  • 01. Strategic priorities
  • 05. Corporate governance
  • 04. Q1 2019 results
  • 03. Executing to strengthen
  • ur business
  • 02. Market fundamentals
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SLIDE 13

Strong Long Term Demand Outlook

...driven by disposable income growth and middle class expansion

13

CAGR 2016-2030F m people over 2016-2030F By region, CAGR range 2016-2030F

Source: Company data and analysis, Euromonitor, AWDC Bain report “The Global Diamond Industry 2018” (December 2018).

7% 7% 6% 6% 2% 2% 1% 1% 3% 3% Indi ndi Chin Chin US US Eur Ro RoW 3-7% 7% 2-4% 4% 1-4% 4% 1-4% 4% 1-4% 4% 52.1 3.5 2.4 24.6 13.7 Lower point refers to base case scenario; upper point to optimistic scenario

Middle class ss growth Diamond jewellery demand growth forecast Real l disposa sable le income e growth

  • 01. Strategic priorities
  • 05. Corporate governance
  • 04. Q1 2019 results
  • 03. Executing to strengthen
  • ur business
  • 02. Market fundamentals
slide-14
SLIDE 14

Constrained Supply Outlook

Depletion of deposits will result in diamond production declines in the coming years

2018 to 2023 supply forecast cast – 4 m ct ct down

14

2019 to 2023 major

  • r project capac

acit ity changes2

Source: Company data and analysis, brokers’ reports.

  • 1. Other includes Zimbabwe and Namibia. 2. Not including ALROSA assets. 3. Stands for De Beers Consolidated Mines, includes Venetia and Voorspoed mines.

1,1 1,2 1,8 1,8 2,3 4,6 (0,9) 9) (2,9) 9) (3,5) 5) (14,0) ,0) Ekat ati (Dominio minion Diamo amond) Lua uaxe xe (Cat atoca

  • ca)

Chid idlia liak (De Beers) Star ar Orio ion South th (Sta tar Diamo amond) Debswa wana (De Beers) Argyle yle (Rio Tinto) Diavik avik (Rio io Tin into to) Gahch cho Kue Kue (De Beers) DBCM CM3

3 (De Beers)

Depletio letion Expansio ion Victo ctor (De Beers) 143 143 141 141 144 144 136 136 140 140 139 139 20 2018 20 2019E 9E 20 2020E 0E 20 2021E 1E 20 2022E 2E 20 2023E 3E Russia ia Botsw tswan ana South th Africa frica Canada Oth ther er1 Congo Aus ustr tralia lia Angola la

m ct m ct

12.8 (21.3)

  • 01. Strategic priorities
  • 05. Corporate governance
  • 04. Q1 2019 results
  • 03. Executing to strengthen
  • ur business
  • 02. Market fundamentals
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SLIDE 15

174 174 150 150 139 139 120 120 130 130 140 140 150 150 160 160 170 170 180 180 20 2018 20 2019E 9E 20 2020E 0E 20 2021E 1E 20 2022E 2E 20 2023E 3E

Favorable Supply/Demand Fundamentals

… will drive the market into a deficit and support positive diamond price pressure

15

Global al Supply / Deman and balance ce outlook

  • k

m ct

~30 ~100 Base c e case sce ase scenar ario io Op Optimistic s timistic scen cenar ario io

Accumulated lated diamon

  • nd deficit

it in 2019-2023 2023

20% % of annual l production’18 70%

m ct

Source: Company data and analysis, AWDC Bain report “The Global Diamond Industry 2018” (December 2018).

  • 01. Strategic priorities
  • 05. Corporate governance
  • 04. Q1 2019 results
  • 03. Executing to strengthen
  • ur business
  • 02. Market fundamentals
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SLIDE 16

Diamonds are Different from Commodities

Mature demand and supply discipline result in low price volatility

16

Mature and stable consumer-driven demand concentrated in developed markets Consolida

  • lidated

ed production ion, supportin ing supply discipli line

63% 63% 40% 40% 31% 31% 27% 27% 22% 22% 20% 20% 15% 15% 11% 11% Diamonds Iron Ore Aluminium Coking coal Nickel Copper Silver Gold

Low price e volat atil ilit ity compared to commod

  • ditie

ities s

11% 11% 33% 33% 14% 14% 36% 36% 22% 22% 18% 18% 34% 34% 16% 16% Low Price ice volat latilit ility 1 High Develo loped ed mar arkets kets 67% 67%

T

  • p-3 producers market share, 2018

Diamond jewellery retail sales, $, 2017

USA 53% 53% EU EU 9% 9% Jap apan 5% 5% Chin ina 20% 20% India ia 6% 6% RoW 7% 7%

Source: Company data and analysis, AME Research, GFMS, Thomson Reuters, Wood Mackenzie, Bloomberg.

  • 1. Calculated as ratio of standard deviation of daily prices to 10 year average price.
  • 01. Strategic priorities
  • 05. Corporate governance
  • 04. Q1 2019 results
  • 03. Executing to strengthen
  • ur business
  • 02. Market fundamentals
slide-17
SLIDE 17

Demystifying LGDs

17

Source: Company data and analysis, DPA, Trucost (S&P Global) report “The Socioeconomic and Environmental Impact of Large-Sacle Diamond Mining” (May 2019)

Case study: LGD position ionin ing by a major

  • r player

 Fixed ed pric ice e  At ~20% of diamond price for 1 ct stone  Linea near r pricing icing  ¼ ct stone price is ¼ of 1 ct stone price  Stan andard, , commod mmodity ity-li like colour, size and quality  No specificat ificatio ions other than size and colour  No grading ading reports ts or certification

Myth: Launch of LGD brand by a major natural diamond producer endorses LGD as a valid substitute to natural diamonds Truth: th: Differentiated market positioning clearly illustrates the diffe ference nces s betwe ween n diamonds and LGD and will serve as a baseline for LGD perce ceptio ion n by custo tome mers and industry players Myth: LGD and diamonds are identical Truth: th: LGD has the same physical and chemical characteristics as diamonds, but they are not identical, and they are easily ily detecte cted using widely available identification equipment Myth: FTC ruling stated that LGDs and diamonds are the same Truth: th: For LGDs, FTC guides require businesses to “disclos close clearly ly and consp spicuo icuously usly that the product is not a mined diamond”. In fact, in all key markets LGDs have to be identified as manmade Myth: LGDs is an eco-friendly and ethical alternative to diamonds Truth: th: Most LGDs are produced in China and India with coal-generated electricity, the estimated CO2 emissions associated with production of 1 carat LGD are 3.0x greater ter vs natur ural l diamo mond

  • nd. Over

99% of supplied natural diamonds are conflict free; proceeds from sales support local communities and employment

LGD myth #1: LGD myth #2: LGD myth #4: LGD myth #3:

  • 01. Strategic priorities
  • 05. Corporate governance
  • 04. Q1 2019 results
  • 03. Executing to strengthen
  • ur business
  • 02. Market fundamentals
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SLIDE 18

1,0x 5,0x 6,0x

  • c. 10,0x

,0x 1970's 1980's 2000's 2010's

LGD: the Future is History

Similar scenario has already realised on the market for lab grown sapphires

18

Indexe exed price ice per carat at of natura tural l sapphire¹

Indexed to 1975 natural sapphire price (in nominal terms)

Exper ert quotes tes

“Focus of lab-grown gemstones is cheape per low-end d jewellery” Head of Business Development, Gemstone trading company “We need to convince people that lab- grown gemstones are not fake stones. We operate on market that is separa rate from natural gemstones” President, Leading lab-grown gemstones company “Rarity is a very important factor r for consumers, but lab-grown gemstones completely miss it” Head of Business Development, Leading gemstone mining company “Lab-grown gemstones do not affect natural market. Easy to distingu guish sh them as they are of perfect quality: too well cut, no inclusions” President, Gemstone trading company

Source: Company data and analysis, Bain data and analysis, Preciousgemstones.com. 1. Sapphire of the highest grade: clarity – LI, colour – 2.5/75 (blue), rough. 2. Price per 1 ct stones of comparable quality (fine-quality).

 Gem quality lab grown sapphires first appeared in 1970s and started commercial production in 1990s  Market share of lab grown sapphires stabilised in 2000’s at 15% production share  End-users clearly marked the difference which is reflected in price-tag for 1 carat Synthetic produ duction

  • n developm

pment does not adverse sely affect the market for natural ston

  • nes

s Na Natura ral Lab Lab grown grown ~$1,50 ,500 ~$180

Price ice per carat disco count (2017)2

$/ct ~80-90% 90%

Lab ab grown wn stones es product ctio ion shar are (2017)

Natura ral 85% 85% Lab grown 15% 15%

  • 01. Strategic priorities
  • 05. Corporate governance
  • 04. Q1 2019 results
  • 03. Executing to strengthen
  • ur business
  • 02. Market fundamentals
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SLIDE 19

Synthetic Stones: Key Marketing Messages

19

Key mark rketin ing messa sages s of lab-grow

  • wn

n colou

  • ured gemston
  • nes

(incl.

  • l. sapphir

ires) s) producers s in 1960-2000s

Source: Company data and analysis. Note: Coloured gem stones messages are based on vintage ads of Chatham Created Gems and Diamonds; Lab-grown messages are based on the message mentions on the websites of Diamond foundry, Chatham Created Gems and Diamonds, Lightbox, NDT, Scio Diamonds and IIA Technologies.

Key mark rketin ing messa sages s of LGD producers s today

Key marketing messages of lab grown sapphires producers are similar to the ones used now by LGD producers Key messages are similar ilar, though now lab-grown diamond producers additionally explore “environmentally-” and “socially-friendly” trend

High quality Affordable Identical

Real

Value Created in America

Available

Above-ground Own design

Identical

Affordable

Guaranteed origin

Created in America

Best of millenials Conflict-free

Eco-friendly

Value

Flexible Pure Good investment

Own design Innovative

Unique

Real

Dynamic Rare

High quality

Unique

Innovative

Ethical

  • 01. Strategic priorities
  • 05. Corporate governance
  • 04. Q1 2019 results
  • 03. Executing to strengthen
  • ur business
  • 02. Market fundamentals
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SLIDE 20

Price per carat ($)

Diamonds and Their Synthetic Substitutes Have Different Price Drivers and Value to Consumers

20

LGD is not the first st synthetic c altern ernat ativ ive to diamon

  • nds

 Industrial product  Can be produced in any volume  Highly fragmented supply, low entry barriers  Product of nature  Rare, unique and inherently valuable  Highly consolidated supply, high entry barriers Price drivers: Cost Price drivers: Rar arity ity Symbolis ism Supply ly discip iplin ine e

Natura ral l diamon

  • nds

VS

LGD Moissan sanite ite White Zircon

  • n

Cubic Zircon

  • nia

ia LGD

Price per carat ($) $400 $400 $75 $75-100 00 $20 $20-40 40 $800 $800

Source: Company data and analysis.

  • 01. Strategic priorities
  • 05. Corporate governance
  • 04. Q1 2019 results
  • 03. Executing to strengthen
  • ur business
  • 02. Market fundamentals
slide-21
SLIDE 21

(16)% )% (18)% )% (42)% )% ~(60)% 0)% (81)% )% LGD price discount to natural Lightbox discount to natural 2016 2016 2017 2017 Now 2018 2018

Expanding LGD Discount Illustrates Different Market Perception of LGD vs. Diamonds

21

LGD discou

  • unt to natural

ral diamon

  • nds

Price of 1 carat polished diamond: Round, VS clarity, F-H colour 5x

Source: Company data and analysis, Paul Zimnisky report “2018: The Year of the Lab-created Diamond”.

  • 01. Strategic priorities
  • 05. Corporate governance
  • 04. Q1 2019 results
  • 03. Executing to strengthen
  • ur business
  • 02. Market fundamentals
slide-22
SLIDE 22

EXECUTING TO STRENGTHEN OUR BUSINESS

03

slide-23
SLIDE 23

52% 20% 32% 37% 43%

ALROSA: the Story of the Industry Leader in 4 Charts

The largest and most profitable player in the industry

23 Reserves ves1 Production ‘18 EBITDA ‘18 EBITDA margin ‘18

% m ct m ct $ bn

37 37 35 35 8 4 18 18 2.5 2.52 1,2 1,2 0,2 0,2 0,2 0,2 0,3 0,3

Source: Company data and analysis, Diamond producers’ data. Note: Diamond producers include De Beers, Rio Tinto, Dominion Diamonds, Petra Diamonds.

  • 1. Reserves are as per latest available data.
  • 2. ALROSA’s financial metrics are converted at 2018 average USDRUB rate of 62.54.

628 212 105 43 40 AL ALRO ROSA SA Peer 1 eer 1 Peer 2 eer 2 Peer 3 eer 3 Peer 4 eer 4 436 436

Inferred resources

  • 01. Strategic priorities
  • 05. Corporate governance
  • 04. Q1 2019 results
  • 03. Executing to strengthen
  • ur business
  • 02. Market fundamentals
slide-24
SLIDE 24

Key Challenges for the Industry

… and how we address them from a value creation perspective 24

  • Increas

asin ing our marketin eting effor

  • rts

s to promote the unique appeal of our product

  • Operational

ional effi ficie ciency cy progra ram and culture

  • Focus on core business
  • Prudent investme

ment progra ram

  • Focus on sharehold
  • lder

er returns ns

  • Investme

ment in explora ration ion and production development to maintain reserves base and production

Lack ck of new deposit its, s, limite ted d explorat ation

  • n succe

cess ss

1

Grade de deter eriorat

  • ration

ion, , cost inflati ation

  • n

2

Ever increasing easing compet etit ition ion from

  • ther

er luxury y goods

3

Rising ng scruti utiny ny over capit ital al allocat

  • catio

ion n disci cipli pline ne

4

  • 01. Strategic priorities
  • 05. Corporate governance
  • 04. Q1 2019 results
  • 03. Executing to strengthen
  • ur business
  • 02. Market fundamentals
slide-25
SLIDE 25

500 750 1 000 1 250 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Superior Exploration Capabilities

Unique ue full-cycle exploration operations… 25

Field geologi gical explor

  • ration
  • n

T echnol

  • logi

gical center (incl. . drilling) g) Scientific research and d analytics

… Backed up by advanced technologies

Complex x Aeroge geoph physi ysical Footage ge-5 Georada dar footage ge Radi dio

  • Wave

Geointrosc

  • scop
  • py

High gh resolution

  • n

seismi smic survey in 3D / 2D

Track ck recor

  • rd of r

resour urce ce replace acement ment2

Source: Company data and analysis.

  • 1. For the period from 2009 to 2018.
  • 2. Based on resources in accordance with the Russian classification.
  • Disco

scover ered ed resou sources: es: 395 m ct

  • Aver

erage e findin ding cost sts s of $3.1 per ct1

+395 m ct

With ith explo lorat atio ion works ks

m ct

… result in solid track record of resource replenishment at low finding costs

  • 01. Strategic priorities
  • 05. Corporate governance
  • 04. Q1 2019 results
  • 03. Executing to strengthen
  • ur business
  • 02. Market fundamentals
slide-26
SLIDE 26

2,5 2,5 3,7 3,7 4,6 4,6 5,6 5,6 5,5 5,5 5,5 5,5 3,4 3,4 2,9 2,9 2,8 2,8 2,8 2,8 2,6 2,6 3,3 3,3 9,0 9,0 6,5 6,5 5,4 5,4 5,2 5,2 4,8 4,8 4,5 4,5 6,2 6,2 4,9 4,9 6,0 6,0 3,7 3,7 3,8 3,8 3,6 3,6 1,5 1,5 4,1 4,1 3,7 3,7 4,1 4,1 3,8 3,8 4,1 4,1 3,6 3,6 3,9 3,9 4,2 4,2 4,8 4,8 5,1 5,1 5,0 5,0 0,2 0,2 1,8 1,8 2,0 2,0 1,9 1,9 1,8 1,8 1,8 1,8 5,4 5,4 5,1 5,1 5,1 5,1 5,0 5,0 5,0 5,0 5,0 5,0 4,8 4,8 5,1 5,1 4,9 4,9 4,7 4,7 5,0 5,0 4,8 4,8

2018 2019E 2020E 2021E 2022E 2023E 2024-3

  • 30E

Stable Production Outlook

26 Product duction ion outlook

  • ok

m ct

Source: Company data and analysis.

  • Develo

lopment ment of new project cts/de /debottlen tleneckin ecking:

  • V

. Munsko koye ye deposit it: +c.2.0 m ct – full ramp-up by ‘20

  • Udach

achny y under erground mine: +c.3.0 m ct – full ramp- up by ‘21

  • Severalma

lmaz: z: +c.1.4 m ct (debottlenecking) from ‘21-22

  • Nyurba divis

visio ion: +c.2 m ct (debottlenecking) in ‘19-20

  • Declin

ine in diam amond outp tput: t:

  • Jubilee

ilee: : -1.5 m ct from ’19 (due to production at kimberlites with a lower grade)

  • Inter

ternatio tional l under erground mine: decrease in ’18-’22 due to mining and geological conditions

Key driver vers

…supported by development of new projects and debottlenecking

36.7 38.0 38.7 37.7 37.4 37.6 37 37-38 38

Average Grade, carats per tonne Almazy azy Anabara Verkhne hne-Muns unskoye Severalm almaz az Nyurbins inskay aya Jubil ilee Inter ernat national ional Udachny hny Other

0.9 0.9 0.9 0.9 0.9 0.9 0.9

Botuob

  • bins

inskay aya

  • 01. Strategic priorities
  • 05. Corporate governance
  • 04. Q1 2019 results
  • 03. Executing to strengthen
  • ur business
  • 02. Market fundamentals
slide-27
SLIDE 27

27

Focus on Value Accretive Capex

Capex dynamics amics Key projects ects

Minin ing capacit city

 Total 2019-24 Capex – RUB B 40 40 bn bn  Completion of Udachny underground mine construction  Completion of Verkhne-Munskoye diamond deposit development  Construction of Maiskaya pipe  Construction of Zaria pipe

Equip ipment ment main intena enance ce

 Total 2019-24 Capex – RUB B 55 55 bn bn

Infrastr frastruct cture

 Total 2019-24 Capex – RUB B 40 bn  Reconstruction of Mirny Airport: total Capex – ~RUB B 10 bn to be invested in 2018-22  Gasification of production facilities in Udachny: total Capex – RUB B 4.6 bn to be invested in 2019-23  Organization of production site for the needs of USO: total Capex – RUB B 5.3 bn to be invested in 2019-20  Construction of gas processing facility by “ALROSA-Gaz” (JSC): total Capex – RUB 2.7 7 bn to be invested in 2018-21

Capex: Investment program with target IRR1 of 20%+

RUB bn

9 8 8 9 8 10 10 9 10 17 14 17 11 11 6 5 2 5 6 5 2 9 8 11 5 4 3

32 32 27 27

28 28

29 29 26 26 28 28 20 20 15 15 18 18 2016 2017 2018 2019E 2020E 2021E 2022E 2023E 2024E

Infrastructure Mining capacity Equipment maintenance

Source: Company data and analysis.

  • 1. For investments in new mining capacity and operational efficiency projects.

Capital-intensive phase is over

  • 01. Strategic priorities
  • 05. Corporate governance
  • 04. Q1 2019 results
  • 03. Executing to strengthen
  • ur business
  • 02. Market fundamentals
slide-28
SLIDE 28

143 143 187 187 105 105 53 53 42 42 8 2017 2018 2019E

Focus on Efficiency

Dedicated operating efficiency program launched in 2017

28 Scali ling ng up i initiat iative ives

Number of Initiatives

Delive ivering ng tangib gible le result ults

General and administrative expenses, RUB bn

Source: Company data and analysis. 1. Include payroll and other employee payments, fuel and energy, materials, external services and transportation, other production costs. 2. Labour costs, services and transportation are adjusted based on CPI. Material costs, fuel and energy are adjusted based on respective price indexes. 3. Calculated based on CPI, excl. impairment of receivables.

Key initiat iative ives

 Optimisation of ore beneficiation and separation processes  Restructuring of construction and geological exploration units  Implementation of centralised management and usage-based approach for transportation  Labour productivity increase  G&A optimisation

Other Operating ing improveme ement nts G&A Energy gy effic icie ienc ncy

208 208

Nominal Unit Costs 1, k RUB/m3

1.12 1.12 1.15 1.15 1.16 1.16 Real terms2 YoY change, % (8%) (5%) (2%) 2016 2017 2018 LT Target (Real) l) Real terms3 YoY change, % (10%) %) (2%) 11.6 11.6 11.7 11.7 12.4 12.4 2016 2017 2018 As % of revenue 4% 4% 4% 4% 4% 4%

  • 01. Strategic priorities
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  • ur business
  • 02. Market fundamentals
slide-29
SLIDE 29

Case Study: Operational Turnaround Program at Nyurba

Nyurba’s success can be replicated and scaled up across other divisions

Key streams eams and initiat ative ives

 Improvin ving mine e fleet et dispat atch chin ing processes by SIC1 procedures implementation  Opti timiz mizin ing OEE2 by reducing non-value added operations  Opti timiz mizin ing main inten tenance e and repair irs

  • perations will lead to improved

equipment availability and  … improved plant availability  Increasing hourly throughput by

  • ptim

timiz izing ing ore e blendi nding ng proce

  • cesses

29 Run of m mine Diamo mond nd product uction ion growth h

17 17 19 19

Overal all l equipment ment efficie iency ncy

+10% 51% 51% 63% 63% +12 p.p.

Proce

  • cessing

sing

2018 2019E 2.1 2.1 2.4 2.4 +14%

m ct

Source: Company data and analysis. 1. Short interval control. 2. OEE – overall equipment efficiency.

+26% 7,7 7,7 9,1 9,1 9,7 9,7 2018 2019E 2020E

m m3 % mt

  • 01. Strategic priorities
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  • 02. Market fundamentals
slide-30
SLIDE 30

Case study: Automotive Transport Optimization

Centralization and usage-based approach provide long-term cost cutting effect

30 Key streams eams and initiat ative ives

 Number of vehicles s went down followin lowing impleme mentat ation ion of new process sses s and tools ls: usage-based approach to vehicles request and utilization, route optimization and reduction of fleet renewal program  Revisio sion of organiz izati ation

  • nal

al structure and headcount

  • ptimization

 Shift to natura ral l gas from gasoline and diesel leads to decreased fuel cost decline and reduced emissions

Cumulat lative ive effect ct in cost cutting ng

3 923 923 3 280 280

RUB mn, expenses related to transportation

Cost saving: RUB 643mn

2018 2019E

Units

1 240 240 791 791 (36%) %)

m tn FTE %

38 38 59 59 +55% 1 715 715 1 389 389 (19%) %) 2018 2019E 8,093 5,769 1,376 684 684 9,469 6,453 (32%) %)

Gasoline Diesel

Number er of v vehic icle les Vehicl hicles es utili lizat zatio ion n factor

  • r

Headcou dcount nt Fuel l

(16%) %)

Source: Company data and analysis.

  • 01. Strategic priorities
  • 05. Corporate governance
  • 04. Q1 2019 results
  • 03. Executing to strengthen
  • ur business
  • 02. Market fundamentals
slide-31
SLIDE 31

78 64 2017 2018 (14) 8,8 7,1 (1.7) 902 804 (98)

Case Study: Working Capital Management

Reduction in rough diamond WIP inventory days

Optimizat mization ion lever ers s 31 Reducti ction

  • n of d

diamonds

  • nds WIP1 cycl

cle

Production Chain of Rough Diamonds

Final sorting and box assembly Preliminary sorting Final Recovery Mine WIP P Cycle ycle Inventory

7 6 7 14

34 34 initia itiative ives

Decrease se in average ge WIP Cycle Number of days $ mn m ct … leading to lower rough diamond WIP inventor

  • ry

y by Volume me … and by Value2

Key enable blers s

 Team am and capability ility develo lopment ment  Productivit ctivity y monit itorin ing and bench chmar markin king  New prod

  • duct

uctivity ivity based ed motiva tivatio tion n system em  IT systems ems upgrade ade

Downtime reduction Workflow optimisation New analytics and modelling Process automation

Source: Company data and analysis.

  • 1. Rough diamonds before sorting is completed. Does not include +10.8 ct and industrial grade diamonds.
  • 2. Based on prices of diamonds set by reference to price lists approved by the Ministry of Finance of the Russian Federation.
  • 01. Strategic priorities
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  • 04. Q1 2019 results
  • 03. Executing to strengthen
  • ur business
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slide-32
SLIDE 32

32

1.8 1.8 2.1 2.1 2.4 2.4 2014 2018 Ta Target 2024E

Employee Training and Development System

Source: Company data and analysis.

k m3 of run-of-mine ore per employee

Key initiat iative ives s and programm ammes es Labou

  • ur product

uctivi ivity y growth

… to further improve long term competitiveness and productivity

+17% +12%

 Revision and simplification of remuneration system to increase transparency and link it to performance  Launch of share-based incentive program to retain top management and align their interests with shareholders  Implementation of a multi-stage competency assessment system for the selection and professional development of the talent pool members  Development of in-house corporate educational system covering various grades and business divisions  Implementation of internal coaching and mentoring programmes Development

  • f talent pool

Improvement

  • f remuneration

system Establishment

  • f Corporate

University

  • 01. Strategic priorities
  • 05. Corporate governance
  • 04. Q1 2019 results
  • 03. Executing to strengthen
  • ur business
  • 02. Market fundamentals
slide-33
SLIDE 33

33

Source: Company data.

Marketing Strategic Initiatives and Ongoing Digitalization

Industry initiati ative

  • Participation in pilot projects involving M2M

and Tracr tracing platforms

  • Implementation of digital twin technology

providing detailed information about each stone

  • Development of digital platform for online

sales

Ongoing digitali lizat ation ion in ALROSA

Generic (category) marketing

  • Participation in DPA to promote the integrity

and reputation of natural diamonds

  • Differentiation
  • f

natural diamonds and LGDs markets driven by rarity, uniqueness and inherent value of natural diamonds Promotion of different assortment categories

  • Active promotion of fluorescent diamonds to

stimulate demand in B2C segment

  • Marketing

initiatives to improve broader sentiment towards fluorescent diamonds Marketing of diamond collections

  • Promotion of large, exceptional quality

diamonds

  • Promotion of fancy coloured diamonds

Introduction

  • f digital

marketing Adoption of best practices in operational digitalization

Digital Mine Virtual Reality Unmanned Technologies Drill-and-blast Automation Big Data Driven Predictive Maintenance

  • 01. Strategic priorities
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  • 04. Q1 2019 results
  • 03. Executing to strengthen
  • ur business
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Compan any initiat iativ ives

slide-34
SLIDE 34

34

Source: Company data.

Diamond Producers Association

Key initiat iativ ives DPA mark rketin ing campaig aigns s by regions

  • 01. Strategic priorities
  • 05. Corporate governance
  • 04. Q1 2019 results
  • 03. Executing to strengthen
  • ur business
  • 02. Market fundamentals

6% 20% 21% 53%

  • N. America (USA from 2016)

India (from 2017) Asia Pacific ex. Japan (China from 2018) RoW % represents share of a region in global jewelry consumption

Marke keting ng budget of the industry y association

  • ciation growth

$ m 10 10 60 60 60 60 70 70

2016 2017 2018 2019E

 Diamo amond Producer cers Associat ciatio ion (DPA) ) formed by 7 major diamond producers in 2015 supports the development of the diamond sector through promotion of reputation of diamonds  Marketi rketing ng campa mpaign igns with a tagline “Real is Rare. Real is a Diamond” launched in the US (2016) and in India (2017)  DPA’s activit tivitie ies inclu clude:  paid advertisement on TV , internet, cinema, social networks  promotion in social media by social influencers  participation in industry events  work with industry and non-industry organizations  market surveys and research  In 2018 DPA’s activit tivitie ies expan anded ed into to Chin ina (while continued in the US and India)  New marketin keting campa mpaig ign addressed ed to women en who purchase diamonds for themselves is called “From Me, To Me”, launched in mid- September 2018

slide-35
SLIDE 35

35

Capital Allocation – Key Principles and Policy Overview

Operating Efficiency Organic Growth

Focus on Core Business Conservative Financial Policy

Strong Liquidity Position Commitment to Balanced Debt Profile

Maximising Shareholder Returns Prudent Capital Allocation

Investment Program with 20%+ IRR1 FCF-linked Dividend Policy Divestiture of Non-core Assets

  • 1. For investments in new mining capacity and operational efficiency projects.
  • 01. Strategic priorities
  • 05. Corporate governance
  • 04. Q1 2019 results
  • 03. Executing to strengthen
  • ur business
  • 02. Market fundamentals
slide-36
SLIDE 36

Baa2 (Stab able le) BBB BBB- (Stab able le) BBB BBB- (Stab able le)

36

Source: Company data and analysis.

2,623 1,048 3,671

31-Mar-2019

  • Maintain conservative debt profile in line with investment grade

criteria

  • Target Net Debt / EBITDA range: 0.5-1.0х
  • Liquidity reserves of >RUB 35 bn (committed credit lines and cash)
  • Natural FX hedge – financial liabilities are matched with income streams
  • Solid public debt track record with fixed-income investors

$ m $ m $ m

Investme ment grade credit ratin ing Net Debt evolution ion to investme ment grade credit ratin ings Conservat vative ve long-term erm finan ancial cial targets Liquidity position ion Debt repaymen ent schedule

3,951 3,119 2,781 1,374 1,494 971 971 522 522 1.9x 1.9x 1.7x 0.5x 0.7x 0.4x 0.2x

2013 2014 2015 2016 2017 2018 Q1'19

Net Debt Net Debt / Adjusted EBITDA (RUB denominated)

Cash and cash equivalen alents (incl. deposits sits) Uncommitt mitted ed Credit it Lines s

Strong Balance Sheet

… with leverage at historic-lows

647 647 896 896 10 10 11 11 6

2019E 2020E 2021E 2022E 2023E

Eurobonds Bank Loans

  • 01. Strategic priorities
  • 05. Corporate governance
  • 04. Q1 2019 results
  • 03. Executing to strengthen
  • ur business
  • 02. Market fundamentals
slide-37
SLIDE 37

311 311 190 190 244 244 1,110 1,281 0.04 0.03 0.03 0.15 0.17

0,00 0,02 0,04 0,06 0,08 0,10 0,12 0,14 0,16 0,18 200 400 600 800 1 000 1 200 1 400

2014 2015 2016 2017 2018

37

Dividend Policy Focused on Maximisation of Shareholder Returns

Histo tori rical cal divid idend end payments ents 1 Divid idend end policy cy overvie view

Dividen vidend d Base

Net debt / EBITDA < 0.0x 0. 0.0x < Net Debt / EBITDA < 1.0x 1. 1.0x < Net Debt / EBITDA < 1.5x

Condit itions ions Payout

  • ut Ratio

Subject to minimum dividend payout of 50% of IFRS net income 100+% +% 70 70–100% 00% 50 50–70% 0%

Freq eque uency ncy

Semi-annual FCF

$ mn $ per share

Source: Company data and analysis.

  • 1. Based on FX rate as of the dividend record date. Dividends paid , based on FY2018 IFES numbers

H1’18 12M’17

  • 01. Strategic priorities
  • 05. Corporate governance
  • 04. Q1 2019 results
  • 03. Executing to strengthen
  • ur business
  • 02. Market fundamentals
slide-38
SLIDE 38

Q1 2019 RESULTS

04

slide-39
SLIDE 39

1,556 1,034 933 802 969 26 23 16 22 18 1,582 1,057 949 824 988

Q1'18 '18 Q2'18 '18 Q3'18 '18 Q4'18 '18 Q1'18 '18

Industrial quality diamonds Gem-quality diamonds

Sales

39

Q1 2019 Sales  Diamond sales increased by 1.6 m carats (18% q-

  • -q) to 10.6 m carats due to increased small-size

diamond sales driven by seasonal restocking by dealers and retailers  Sales were up 20% q-o-q to USD 988 m (down 37% y-o-y) due to a larger share in small-size diamonds 12M 2018 Sales  Diamond sales were 38.1 m carats (down 8% y-o- y), while  … diamond sales in value terms rose by 6% to USD 4.4 bn on the back of stronger prices and improved mix of gem-quality diamonds

Highlights

Diamo amond sales in carats

$ m

Source: Company data and analysis.

Diamo amond sales in U.S. . dolla lars

  • 01. Strategic priorities
  • 05. Corporate governance
  • 04. Q1 2019 results
  • 03. Executing to strengthen
  • ur business
  • 02. Market fundamentals

m ct 10.1 6.3 4.7 5.3 7.9 3.2 2.7 2.0 3.7 2.7 13.4 .4 9.0 6.7 9.0 10.6 .6

Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

Industrial quality diamonds Gem-quality diamonds

Increase in diamond sales

30.1 26.4 11.1 11.7 41.2 .2 38.1 .1

12M'17 12M'18

4,085 4,325 85 87 4,17 ,170 4,41 ,412

12M'17 '17 12M'18 '18

slide-40
SLIDE 40

5.7 10.1 .1 17.2 .2 7.5 7.8

1.30 0.84 0.61 1.38 1.23 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

Grade, cpt

Output

40

Q1 2019  Production was down 24% q-o-q to 7.8 m ct mostly due to a decrease in output at the International and Aikhal UG mines and the Jubilee pipe  Av. grade went down by 11% q-o-q to 1.23 cpt 12M 2018  The volume of processed ore and gravels grew by 3% to 40.5 m t mainly due to increased gravel processing at Almazy Anabara alluvial deposits (up 8%) and Mirny Division (up 10%)  Production declined by 7% to 36.7 m ct due to the shutdown of the Mir UG mine and the completion

  • f open-pit mining at the Udachnaya pipe

 Av. diamond grade was 0.91 cpt

Highlights

Ore e and sands proces cessin ing

m ct

Source: Company data and analysis.

Diamo amond product ctio ion

  • 01. Strategic priorities
  • 05. Corporate governance
  • 04. Q1 2019 results
  • 03. Executing to strengthen
  • ur business
  • 02. Market fundamentals

m t 5.3 4.1 3.8 6.5 6.1 2.0 2.1 1.0 3.3 1.5 0.2 2.3 5.8 0.5 0.2 7.4 8.5 10.5 .5 10.3 .3 7.8

Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

Open pit Underground Alluvials 39.1 .1 40.5 .5

1.01 0.91 12М'17 12М'18

21.1 19.7 10.6 8.4 8.0 8.7 39.6 .6 36.7 .7

12М'17 12М'18

Q1 2019: increase in diamond production

slide-41
SLIDE 41

1,26 ,260 1,51 ,514

2017 2018

718 718 342 342 242 242 215 215 395 395

Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

41

Q1 2019:  Revenue came in at $1.1 bn (up 17% qoq) due to increase of diamond sales in carats. 36% yoy decrease was driven by reduction of diamond sales in carats and a weaker sales mix  EBITDA was up 18% qoq to $0.5 bn on increased diamond sales and cost control. 43% yoy decrease was driven by revenue decline  EBITDA margin stood at 44% (down 6 p.p. yoy)  Net income stood at $0.4 bn (up 3.0x qoq, down 37% yoy)  FCF increased by 84% qoq to $0.4 bn (down 53% yoy)  Net debt / EBITDA stood at 0.2x

Highlights

Superio erior profita fitabilit ility

$ m

Source: Company data and analysis.

Strong Free e Cash Flow w genera erati tion

  • 01. Strategic priorities
  • 05. Corporate governance
  • 04. Q1 2019 results
  • 03. Executing to strengthen
  • ur business
  • 02. Market fundamentals

$ bn

Resilient financial performance with strong margins and positive free cash flow

Key Financials

1.7 1.2 1.1 0.9 1.1 0.8 0.7 0.6 0.4 0.5

50% 57% 57% 44% 44%

Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

Revenue EBITDA EBITDA margin 4.7 4.8 2.2 2.5

46% 52%

2017 2018

slide-42
SLIDE 42

6% 6% 22% 22% (23%) (19%) 154 164 199 153 123

Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

Price Dynamics

42

 In Q1 ‘19 average price index decreased by 3.1% mainly due to oversupply in the diamond market, weaker Indian rupee and limited access to affordable financing for mid-stream in India  Q1 ’19 average selling prices of gem-quality diamonds decreased by 19% qoq (down 20% yoy) to $123/ct due to a larger share of small-size diamonds and lower prices mostly for medium-size diamonds  In 2018 average price index gained 2.9% (following a 3.4% gain in 2017)  Due to better sales mix, 12M ’18 average selling prices1 grew by 21% and reached $164/ct

Highlights

Price ice index ex for gem-quality lity diamo amonds

$/ct

Source: Company data and analysis. 1. Average selling prices (sales revenue divided by sales volumes in carat terms) are also impacted by changes in the product mix throughout the reported period. 2. Average index change of like-for-like diamonds prices (excl. +10.8 carats)

Avera erage e sellin ing price ice1 for gem-qualit ality y diamo amonds

(2%) (1%) (12%) (9%) 21% 175 172 170 149 136 164

2013 2014 2015 2016 2017 2018

Price change 3% (5%) (8%) 3% 3% 1.00 1.03 0.97 0.90 0.93 0.95

2013 2014 2015 2016 2017 2018

Average index change

2

  • 01. Strategic priorities
  • 05. Corporate governance
  • 04. Q1 2019 results
  • 03. Executing to strengthen
  • ur business
  • 02. Market fundamentals

2% 2% 2% 2% (2%) (3%) 1.00 1.02 1.04 1.02 0.99

Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

Average price index

slide-43
SLIDE 43

53 53 64 64 26 26 (13) (2) (0.5) 5)

Q4'18 Re Revenu nue Volum lume Sale Sales mix ix Pr Pric icing ing li like-for-li like FX FX Q1'19 Re Revenu nue

Sales Update

43

 Q1‘19 gem-quality diamond sales were up by 20% qoq to RUB 64 bn driven by:  (+) 18% increase in sales volumes (in carats)  (-) weaker product mix  (-) softer LFL prices (av. index change – -3%)  (-) FX rate impact on stronger RUB  2018 revenue grew by 8% driven by stronger gem- quality diamond sales

Highlights Q1 2019 gem-qual alit ity rough diamon

  • nd revenue bridge

RUB bn RUB bn

Source: Company data and analysis.

  • 1. Prices of diamonds are set by reference to price lists approved by the Ministry of Finance of the Russian Federation.

2017-2018 gem-quality ality rough diamon

  • nd revenue bridge
  • 01. Strategic priorities
  • 05. Corporate governance
  • 04. Q1 2019 results
  • 03. Executing to strengthen
  • ur business
  • 02. Market fundamentals

238 238 267 267 (30) 40 40 4 14 14

2017 Re Revenu nue Volum lume Sale Sales mix ix Pr Pric icing ing li like-for-li like FX FX 2018 Re Revenu nue

slide-44
SLIDE 44

Profitability Analysis

44

 Q1‘19 EBITDA was up by 16% qoq driven by:  (+) 18% increase in cts sales: impact RUB 26 bn  (-) sales mix: impact RUB 13 bn  (-) like-for-like prices: impact RUB 2 bn  (-) FX rate impact RUB 0.4 bn  (-) other factors: total impact RUB 6 bn  Q1 ‘19 EBITDA was down by 34% yoy driven by:  (-) 21% reduction in cts sales: impact RUB 21 bn  (-) sales mix: impact RUB 10 bn  (-) like-for-like prices: impact RUB 4 bn  (+) FX rate impact RUB 8 bn  (+) other factors: total impact RUB 10 bn

Source: Company data and analysis.

  • 01. Strategic priorities
  • 05. Corporate governance
  • 04. Q1 2019 results
  • 03. Executing to strengthen
  • ur business
  • 02. Market fundamentals

27 27 31 31 26 26 (13) (2) (0.4) 4) (6)

Q4'18 '18 EBIT EBITDA DA Sa Sale les volum lume Sa Sale les mix ix Pr Pricing icing like- like-for-li like ke FX FX Ot Other Q1'19 '19 EBIT EBITDA DA

RUB bn

Q1 2019 EBITDA A – key drivers s (yoy) Q1 2019 EBITDA A – key drivers s (qoq)

RUB bn

Highlights

48 48 31 31 8 10 10 (21) (10) (4)

Q1'18 EBIT EBITDA DA Sale Sales volum lume Sale Sales mix ix Pr Pric icing ing like- like-for-li like ke FX FX Ot Othe her Q1'19 EBIT EBITDA DA

slide-45
SLIDE 45

Free Cash Flow and Total Debt Analysis

45

Q1 2019 EBITDA A to Free Cash Flow bridge

RUB bn

Source: Company data and analysis. 1. Mainly includes changes in FX, finance income/expense, income from grands, insurance reimbursement etc.

Q1 2019 T

  • tal

l debt bridge

RUB bn

  • 01. Strategic priorities
  • 05. Corporate governance
  • 04. Q1 2019 results
  • 03. Executing to strengthen
  • ur business
  • 02. Market fundamentals

0.4x 33.8 67.5 67.8 (6.2) 2) (1.6) 6) 28.6 (25.9) .9) 39.2 101.6 .6 106.7 .7

To Total d l debt Q1'19 Ot Othe her Sale Sale

  • f a

assets Liq Liquid uidity cha changes nges FCF FCF To Total De l Debt 4Q'18

Net debt Cash and cash equivalents (incl. deposits)

ND / / EBITDA 0.2x

1

31.4 3.6 (5.1) 1) (0.2) 2) 29.7 (3.9) 9) 25.9

EBIT EBITDA DA Ch Changes nges in in NW NWC Inco Income t tax Ot Othe her Op Operating ing ca cash h flo low Ca Capex Fre Free ca cash h flo low

slide-46
SLIDE 46

Outlook

46

Marke ket outloo

  • ok

ALROSA operat atin ing perfor

  • rmanc

mance

  • 01. Strategic priorities
  • 05. Corporate governance
  • 04. Q1 2019 results
  • 03. Executing to strengthen
  • ur business
  • 02. Market fundamentals

 Underlying demand for diamond jewellery demonstrates positive dynamics while escalation of trade tensions could weigh negatively on the growth rates  Overall diamond stocks are expected to remain flat at mid- stream, as Indian mid-streamers continue to face difficulties with access to affordable financing  Global diamonds supply continues to decrease  Production outlook for 2019 remains unchanged at 38 m ct (+1.3 m ct yoy) on continued ramp-up of Verkhne- Munskoye and Severalmaz  Grades are expected to stabilize at 0.9 ct/t  Production mix and sales mix are expected to normalize following sale of higher grade stocks in the first half of 2018

slide-47
SLIDE 47

CORPORATE GOVERNANCE

05

slide-48
SLIDE 48

48

  • 01. Strategic priorities
  • 05. Corporate governance
  • 04. Q1 2019 results
  • 03. Executing to strengthen
  • ur business
  • 02. Market fundamentals

Source: Company data.

Increas ased share e of INEDs s in the Board of Direct ctor

  • rs

s

Number of Members

2 4 13 11

2014 Now Now Independent Nominees of RF and Yakutia

6 – Russian Federation 4 – Republic of Yakutia 1 – Local Communities of Yakutia

INEDs Ds represe sent 100% in Audit and 75% % in RemCo committe ittees

Number of Members

Strategy with 3 INEDs

  • ut of 13

RemCo Committee – 3 INEDs out of 4 Audit – 3 INEDs out of 3 Chaired by INEDs

Corporate Governance and Shareholder Support

  • Regular and transparent disclosure and commitment to best in class

corporate governance practices

  • New initiatives are under way:

‒ Corporate Strategy till 2024 ‒ HR Strategy with the overhaul of the organization structure and

motivation schemes (stock option program is one of the initiatives)

‒ Introduction of a long-term incentive plan linked to total shareholder

return (TSR) targets to align management and shareholder interests and provide incentives for sustainable long-term development

‒ Approval of new HSE policy, aimed to promote a culture of safety

Commitment to improving standards of corporate governance

1
slide-49
SLIDE 49

Current Board has Supported Initiatives to Improve Alignment of Shareholder Interests

49

HSE strategy

Approval of new HSE policy, aimed to promote a culture of safety.

New management team

New senior management team with tenured professionals committed to increase shareholders return and modernise ALROSA’s corporate structure and operations.

New clear financial and dividend policy

Financial policy to ensure an appropriate balance between capital structure and liquidity at hand. New clearly articulated semi-annual dividend policy based on FCF and target leverage.

Transparency and disclosure

Commitment to regular and transparent disclosure

  • f operational and financial results and publishing
  • f social and environmental report.

Long-term incentive plan

Introduction of a long-term incentive plan linked to a set of financial, operational and total shareholder return (TSR) targets to align management and shareholder interests

  • 01. Strategic priorities
  • 05. Corporate governance
  • 04. Q1 2019 results
  • 03. Executing to strengthen
  • ur business
  • 02. Market fundamentals
slide-50
SLIDE 50

Board Agenda for 2019-2020

50 Highlight long-term strategic issues in marketing Active engagement with all stakeholders Emphasis on developing risk management culture within the company Reform of HR and pay structure Focus on continuous business transformation to ensure long-term competitiveness and sustainable production

1 2 3 4 5

  • 01. Strategic priorities
  • 05. Corporate governance
  • 04. Q1 2019 results
  • 03. Executing to strengthen
  • ur business
  • 02. Market fundamentals
slide-51
SLIDE 51

APPENDIX

06

slide-52
SLIDE 52

52

Key Investment Projects

Udach achny UG UG mine VM VM1 deposit it Zar aria ia pipe Mais iska kaya ya pipe VG VG2 deposit it Type of minin ing Underground Open-pit Open-pit Open-pit Alluvials Productio ction star art 2014 2018 2020 2025 2022 Ramp mp-up up 2021 2020 2021 2027 2022 T ar arget et ore e outp tput ut pa, a, m t 4.0 3.0 1.2 0.3 1.1 T ar arget et prod

  • ductio

ction n pa, , m ct ct 5.6 1.8 0.4 1.2 0.4 Tota tal l CAPEX, , RUB bn bn 63.9 25.0 8.4 5.6 2.3 Inves ested ted shar are 85% 69% 77% 1% 0% Resource ce base3, , m ct ct 207.6 40.4 7.1 12.7 4.7

Source: Company data

  • 1. Verkhne-Munskoye deposit
  • 2. Vodorazdelnye Galechniki deposit
  • 3. Diamond mineral resources in accordance with the JORC Code as at 1 July 2018

Yakutsk Mirny Udachny Aikhal

1 2 3 4 5

1 2 3 4

Nyurba

5

Yakutia

slide-53
SLIDE 53

53

Projects Under Consideration

Jubilee ilee UG UG mine Mir UG UG mine Type of minin ing Underground Underground Ramp mp-up up (prelimin eliminar arily) ily) 2032 2031-32 T ar arget et ore e outp tput ut pa, a, m t 1.8 1.3 T ar arget et production ction pa, , m ct ct 2.3 3.8 Tota tal l CAPEX, , RUB bn bn ~72 ~73 Inves ested ted, , % 0% 0% Reserve ve base1, , m ct ct ~43.2 ~68.6 Proje ject ct IRR Up to 20% 18.3%

Source: Company data

  • 1. Subject to further exploration

Yakutsk Mirny Aikhal

1 2

1 2

Decision on the mines construction will be taken after the feasibility studies will be completed, all numbers are indicative and based on preliminary estimate

Yakutia

slide-54
SLIDE 54

54

  • 1. Long-term agreements which provide stable sales and predictable prices

during volatility on diamond market (strategy generates ~70% of ALROSA's rough diamond sales)

  • 2. Largest jewellery chain stores:
  • 3. Competitive sales via auction and tenders
  • 4. Spot sales pursuant to one-off contract arrangers
  • 5. Sales through Russian government entities – Almaziuvelirexport and

Gokhran of Russia

ALROSA’s geography of sales1 based on clients s legal residence ces

number of long-term clients as of January 2019

47% 47% 15% 15% 10% 10% 12% 12% 10% 10% 4% 4% 2% 2% Belgium India Israel Russia UAE China Other

4 7 1 9 18 18 4 24 24

ALROSA’s rough diamond sales channel breakdown

18% 64% 71% ~70% 72% 17% 12% 10-20% 10% 19% 17% 10-20%

2006-2008 2012-2014 2015-2016 Long Long-term

Tenders Spot sales Long-term contracts

Sales Structure and Channels

Multichannel distribution with growing focus on long-term contracts

Overview ew of sale les s channels ls

Source: Company data and analysis

88%

  • f ALROSA’s diamond sales

accounted for exports1

98% / 70%

  • f ALROSA’s diamond sales / volume

generated by sales of gem-quality rough

slide-55
SLIDE 55

7.3 7.3 7.5 7.5 7.3 7.3 7.0 7.0 7.5 7.5 6.7 6.7 2016 2017 2018E

Produ roduction

  • n

Sal Sales

55

Expansion to Africa

Promising region with high exploration potential

Productio ction and sales, , m ct ct

255 255 300 300 350+ 2016 2017 2018E

Axis Title

Improved

  • ved financial

ncial performance

  • rmance at Catoca

ca Devel elop

  • pment

ment of Luele le pipe

 Luale kimberlite pipe is the largest diamond discovery over the past 60 years  The project is operated by Luaxe consortium

Exploration

  • n activi

ivitie ies

 Kimang JV (Angola): ):

‒ 50/50% JV between ALROSA and Endiama ‒ Exploration activities in Quango area, the North of Central Angola ‒ Awaiting exploration license approval for Chisombo area

 Zimbabw bwe:

‒ Strategic partnership with the government of Zimbabwe ‒ Selection of potential targets for exploration study

 The pipe development plan to be approved by the end of 2019  Resource ce base: : 350 m ct  Expecte cted average grade: 0.95 ct/t EBITDA, , $ mn mn  Catoca ca in numbers:

‒ T

  • tal reserves ~ 120 m ct // 2 processing plants with 13 m t pa // 0.61 ct/t

 Recent t corporate te governance nance improvem vements ts: :

‒ Supervisory & Fiscal committees authorized to review and approve contracts ‒ Appointment of executive directors to be approved by Supervisory committee ‒ Rotation between ALROSA and Endiama in appointing CEO and CFO

 Change ge in sales practi tices ces:

‒ New approach to sale channels diversification following reform in Angola’s

diamond industry has already resulted in double-digit growth of diamond prices

$84/ 84/ct ct $89/ $89/ct ct $110/ct ct

Source: Company data and analysis.

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SLIDE 56

56

Focus on Core Business with “Back to Basics” Approach

5,341 652 652 271 271 463 463 17 17 30,30 ,300 3,200

2013 2014 2015 2016 2017 2018 Q1'19

47 47 39 39 34 34 32 32 31 31 29 29 27 27

2013 2014 2015 2016 2017 2018 Q1'19 '19

 Program to divest non-core assets started in 2013 includes assets in real estate, energy (gas) farming, insurance, etc.  The program is planned to be completed by 2020  Number of non-core entities was down by 40% from 2013 Q1 2019 2019 proceed ceeds from divestmen tments ts were RUB 3.2 bn bn:  disposal of non-core assets for RUB 1.6 bn (the most significant transaction – sale of 100% stake in JSC Golubaya Volna Resort for RUB 1.2 bn  disposal of property by LLC Innovation Centre Bourevestnik for RUB 1.6 bn Tota tal proceed ceeds from dives estmen tments were RUB 37 37 bn bn in in 2013 2013-201 018:  80% of total proceeds came from the sale of gas assets in Q1 2018 to NOVATEK  Another significant divestment was sale by ALROSA of 51% stake in Timir, iron ore producer, to EVRAZ in 2013 for total consideration of RUB 4.95 bn

RUB m

Proceeds s from m sale le of non-cor

  • re asse

sets Number of ALROSA’s subsidiaries

1

Source: Company data

  • 1. Excluding ALROSA Finance BV, ALROSA Finance SA, Wargan Holdings Limited (finance entities) and ALROSA Overseas SA (holding company)
slide-57
SLIDE 57

86% 86% 14% 14%

Creating a clearer and sustainable environment

57

Source: Company data and analysis. 1. Include PJSC ALROSA’s diamond production assets and the Heat and power supply company, which was removed from PJSC “ALROSA” structure starting from 01.01.2017 and became its subsidiary PTWS LLC.

 Over the past two years, ALROSA has reduced CO2

emissions by c.20%

 Already impressive share of clean electricity and heat

consumption of 86%

 Efficient disclosure is acknowledged by ESG ratings: ‒ 3rd

rd place

ace (out of 33) in the “First rating of environmental performance of mining companies in Russia”

‒ Rated amon

mong top-10 0 Russian companies with transparent corporate reporting according to Transparency International-Russia research

Share of clean electricity and heat consumption Other 1 067 067 1 064 064 858 858 2016 2017 2018

2018

Latest st devel elopm

  • pment

ents Reducti ction

  • n of C

CO2 emiss ssions ions1

ths tonnes

Share e of c clean ean (incl.

  • l. renewable)

able) elect ctric icit ity and heat consu sumption mption

slide-58
SLIDE 58

58

Profit Curve of Existing Diamond Mines

Tier-2 performing mines (2nd quartile, 25-50%) Tier-4 performing mines (4th quartile, 75-100%)

(Price per ct - Cash Cost per ct), $ (Price per ct - Cash Cost per ct), $ (Price per ct - Cash Cost per ct), $

Source: Company data and analysis. Note: Assessment of 2017 production.

(Price per ct - Cash Cost per ct), $

Tier-1 performing mines (1st quartile, 0-25%) Tier-3 performing mines (3rd quartile, 50-75%)

Margin per carat by mines

slide-59
SLIDE 59

FX Rate

59

Source: Company data and analysis.

Financial ancial metric ics s breakdo akdown n by currency ency

% of metric's total

 ALROSA is an exporter with 95% of revenue denominated in USD  Major portion (74%) of costs and capex is denominated in RUB 95% of the Company’s debt portfolio is denominated in USD to create a natural hedge against FX risks  ALROSA's financial sensitivity analysis shows that a change in the USD exchange rate by +/- 1 RUB/USD leads to the following change in metrics:

‒ revenue – +/-1.42% ‒ cost of sales – +/-0.23% ‒ EBITDA – +/-2.91% ‒ capex – +/-0.39%

RUB USD

95% 15% 26% 59% 95% 5% 85% 74% 41% 5%

Re Revenu nue Co Cost of

  • f sale

les Ca Capex Ca Cash h and nd ca cash equiv uivalent nts (incl (incl. b bank nk deposits) its) To Total debt

slide-60
SLIDE 60

60

Alexey Kovalenko Director, Mirny mining and processing division

  • Joined the Company in 1996
  • Over 20 years of industry experience

Roman Deniskin Director, Udachny mining and processing division

  • Joined the Company in 2019
  • Over 15 years of industry experience

Evgeniy Denisov Director, Aikhal mining and processing division

  • Joined the Company in 2005
  • Over 15 years of industry experience

Anatoliy Platonov Director, Nyurba mining and processing division

  • Joined the Company in 1992
  • Over 25 years of industry experience

Pavel Marinychev CEO Almazy Anabara

  • Joined the Company in 2016
  • First deputy Prime Minister of the Republic of Sakha (Yakutia) (2014‒2016)
  • Deputy Prime Minister of the Republic of Sakha (Yakutia) (2010‒2014)

Andrey Pismenny CEO Severalmaz

  • Joined the Company in 1997
  • Over 20 years of industry experience
  • Chief engineer of ALROSA in 2010‒2015

CEO COO CFO Sales Sergey Ivanov Chief Executive Officer

  • Joined the Company in 2017
  • Senior Vice President at Sberbank of Russia (2016‒2017)
  • Chairman of the Management Board of SOGAZ (2011‒2016)
  • Top management positions at Gazprombank (2005‒2011)

Alexey Philippovskiy Deputy CEO – Chief Financial Officer

  • Joined the Company in 2017
  • CFO of Siberian Generating Company (2015–2017)
  • Head of Finance and Economics and then CFO of Sibur (2004–2013)
  • Consultant at McKinsey & Co. (2001–2004)

Management Team

Committed to deliver on ALROSA’s development plans

Mirny Division Udachny Division Aikhal Division Nyurba Division Almazy Anabara Severalmaz

Executive ve team Operational ional team

Igor Sobolev First Deputy CEO – Chief Operating Officer

  • Joined the Company in 2007
  • Head of Capital construction division, mining & metallurgical

directorate at Norilsk Nickel (2000‒2007) Yuri Okoyomov Deputy CEO for Sales

  • Joined the Company in 1993
  • Vice President of ALROSA for marketing and sales since

August 2009 Source: Company data.

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SLIDE 61

61

Supervisory Board Overview

Source: Company data.

Anton Siluanov First Deputy Chairman of the Government

  • f the Russian Federation

Aysen Nikolaev Head of the Republic of Sakha (Yakutia) Nikolay Alexandrov First Deputy Head of Suntarsky Ulus Municipal District of the Republic of Sakha (Yakutia) Vladimir Solodov Chairman of the Government of the Republic of Sakha (Yakutia) Nominated by: the Russian Federation Nominated by: the Republic of Sakha (Yakutia) Nominated by: Municipal Districts of the Republic of Sakha (Yakutia) Nominated by: the Republic of Sakha (Yakutia) Previously held positions include:

  • 2005-2011 – Deputy Minister of Finance of the Russian

Federation

  • Since 2011 – Minister of Finance of the Russian

Federation

  • Since 2018 – First Deputy Chairman of the Government
  • f the Russian Federation

Previously held positions include:

  • 2012-2018 – Head of the urban district ”City of

Yakutsk”

  • Since 2018 – Head of the Republic of Sakha (Yakutia)

Previously held positions include:

  • 2009-2015 – Specialist, Senior Specialist, Leading

Specialist, Head of water transport Department of Ministry of Transport and Road Infrastructure of the Republic of Sakha (Yakutia)

  • 2015-2016 – General Director of the state-run

enterprise of the Republic of Sakha (Yakutia) “Arctic Transportation Company”

  • Since 2017 – First Deputy Head of Suntarsky Ulus

Municipal District of the Republic of Sakha (Yakutia) Previously held positions include:

  • 2013-2015 – Head of department in Agency of

Strategic Initiatives

  • 2015-2018 – Deputy Plenipotentiary Representative of

the President of the Russian Federation in the Far Eastern Federal District

  • Since 2018 – Chairman of the Government of the

Republic of Sakha (Yakutia) Alexey Chekunkov CEO of Far East and Baikal Region Development Fund Kirill Dmitriev CEO of Russian Direct Investment Fund Oleg Fedorov Independent director of the Supervisory Board, ALROSA Maria Gordon Independent director of the Supervisory Board, ALROSA Nominated by: the Russian Federation Nominated by: the Russian Federation Nominated by: minority shareholders as an independent director Nominated by: minority shareholders as an independent director Previously held positions include:

  • 2009-2011 – Head of New Nations Capital Investment

Company

  • 2011-2013 – Director, member of the board, member
  • f investment committee of the Russian Direct

Investment Fund

  • Since 2014 – General Director of the Far East

Development Fund Previously held positions include:

  • 2007-2011 – Development Director, President of Icon

Private Equity Limited Representative Office

  • Since 2011 – CEO of Russian Direct Investment Fund

Previously held positions include:

  • 2009-2012 – Head, Department of Investment and

Banking, VTB Capital

  • 2012-2014 – Adviser to the Head of the Federal

Agency for State Property Management

  • Since 2013 – Independent director of the Supervisory

Board of ALROSA Previously held positions include:

  • 1998-2010 – Goldman Sachs, investment activity
  • 2010-2014 – PIMCO, investment activity
  • Since 2015 – Independent director of the Supervisory

Board of ALROSA 2 1 6 3 5 7 8 4

slide-62
SLIDE 62

62

Supervisory Board Overview

Source: Company data.

Sergey Mestnikov CEO of Trust Fund for Future Generations

  • f the Republic of Sakha (Yakutia)

Alexey Moiseev Deputy Minister of Finance of the Russian Federation Ilya Yelizarov Assistant Head of the Federal Agency for State Property Management (Rosimushchestvo) Nominated by: the Republic of Sakha (Yakutia) Nominated by: the Russian Federation Nominated by: the Russian Federation Previously held positions include:

  • 2010-2012 – Deputy Head, Head, Secretariat of Chairman
  • f the Government of the Republic of Sakha (Yakutia)
  • 2012-2016 – First Deputy Minister of Property and Land

Relations of the Republic of Sakha (Yakutia)

  • Since 2016 – CEO of Trust Fund for Future Generations of

the Republic of Sakha (Yakutia) Previously held positions include:

  • 2001-2010 – Senior Economist, Deputy Head of

Analytical Department of Renaissance Capital - Financial Consultant

  • 2010-2012 – Deputy Head of Department, Head of

Division at VTB Capital

  • Since 2012 – Deputy Minister of Finance of the Russian

Federation Previously held positions include:

  • 2010-2012 – Referent of the Department of the

Presidential Experts' Directorate, Assistant Head of Presidential Administration

  • 2012-2015 – Assistant Chairman of the Government of

the Russian Federation

  • Since 2017 – Assistant Head of the Federal Agency for

State Property Management (Rosimushchestvo) Evgenia Grigorieva Minister of Property and Land Relations of the Republic of Sakha (Yakutia) Sergey Ivanov Chief Executive Officer of ALROSA Dmitry Konov Member of the Board of Directors, Chairman of the Management Board at SIBUR Holding Galina Makarova Independent director of the Supervisory Board, ALROSA Nominated by: the Republic of Sakha (Yakutia) Nominated by: the Russian Federation Nominated by: the Russian Federation as an independent director Nominated by: the Republic of Sakha (Yakutia) as an independent director Previously held positions include:

  • 2007-2011 – First Deputy Minister of Property

Relations of the Republic of Sakha (Yakutia)

  • Since 2011 – Minister of Property and Land Relations
  • f the Republic of Sakha (Yakutia)

Previously held positions include:

  • 2011-2016 – Chairman of the Management Board of

AO SOGAZ

  • 2016-2017 – Senior Vice President, Head of Wealth

Management at Sberbank of Russia

  • Since 2017 – CEO of ALROSA

Previously held positions include:

  • 2011-2016 – CEO of SIBUR
  • Since 2007 – Member of the Board of Directors, Chairman
  • f the Management Board (since 2009) at SIBUR Holding

Previously held positions include:

  • 2003-2007 – Ministry of Property Relations of the

Republic of Sakha (Yakutia)

  • 2007-2015 – Permanent Representative of the

Republic of Sakha (Yakutia) in St. Petersburg

  • Since 2018 – Independent director of the Supervisory

Board of ALROSA 10 9 11 14 13 15 12

slide-63
SLIDE 63

Glossary

63

Term rm Definit initio ion

ct ct Carat : one of the four main diamond characteristics, the others being colour, cut and clarity; 1 carat=200 mg m m ct ct Million carats CVD Chemical vapour deposition: a high-temperature, but normal-pressure process to grow lab-grown diamonds DPA DPA Diamonds Producers Association FTC Federal Trade Commission Gem Gem-qua uali lity diamond nds Diamonds used for jewellery manufacturing HPHT High-pressure, high-temperature; a process using large presses to grow lab-grown diamonds INED ED Independent Director Lab-grown n diamond nds (LGD) D) Diamonds produced in laboratories using HPHT or CVD methods; also known as synthetic diamonds m3 Cubic meter Average pric ice index Average index change of like-for-like diamonds prices (excl. +10.8 carats) Reserves Resources known to be economically feasible for extraction Resour urce ces Valuable deposits that could potentially be economically extracted at a later point RoW Rest of the world tn tn Tonnes mmt Million tonnes p.p. Percentage points

slide-64
SLIDE 64

THANK YOU!

M: +7 985 760 55 74 E: ST@ALROSA.RU HEAD OF CORPORATE FINANCE SERGEY TAKHIEV MOSCOW, RUSSIA 115184 24 OZERKOVSKAYA EMB.