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Investor presentation Disclaimer The information contained herein - - PowerPoint PPT Presentation

Investor presentation Disclaimer The information contained herein has been prepared for the use in this Presentation (the Presentation) and has not been independently verified. Such information is confidential and is being provided to you


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SLIDE 1

Investor presentation

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SLIDE 2

2

Disclaimer

The information contained herein has been prepared for the use in this Presentation (the “Presentation”) and has not been independently verified. Such information is confidential and is being provided to you solely for your information and may not be reproduced, retransmitted, further distributed to any other person or published, in whole or in part, for any purpose. The opinions presented herein are based on general information gathered at the time of writing and are subject to change without notice. Certain industry, market and competitive position data contained in this Presentation come from official or third party sources believed to be reliable but ALROSA does not guarantee its accuracy or completeness. This Presentation contains statements about future events and expectations that are forward-looking statements. Any statement in this Presentation that is not a statement of historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause the ALROSA’s actual results, performance

  • r 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. ALROSA assumes no obligation to update, supplement or revise forward-looking or any other statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements. ALROSA does not intend or have any duty or obligation to update or to keep current any information contained in this Presentation. The diamond resources and reserves estimates provided in this Presentation have been prepared and presented in accordance with the standards and classifications of the JORC Code (the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves as promulgated by the Australasian Joint Ore Reserves Committee), which differ in significant respects from the standards and classifications applicable to the disclosure of mineral resources and reserves under the laws and regulations of certain other jurisdictions, including the regulations of the U.S. Securities Exchange Commission (the “SEC”) with respect to registration statements and other documents filed with the SEC. Among other things, in accordance with the JORC Code, this Presentation provides certain mineral resources estimates classified as “inferred”, “indicated” or “measured”, which differ in significant respects from “probable” and “proven” mineral reserves estimates and are not disclosed in certain jurisdictions, including in SEC filings. There can be significant uncertainty as to whether mineral resources can ever be feasibly and commercially mined. For further explanation of the JORC Code, see the JORC website at www.jorc.org. This Presentation does not constitute an offer to sell, or any solicitation of any offer to subscribe for or purchase, any securities. No part of this Presentation, nor the fact of its distribution, should form any basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. The information in this Presentation is subject to verification, completion and change. No representation or warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the accuracy or completeness of the information or opinions contained in this Presentation. None of ALROSA nor any of its shareholders, directors,

  • fficers or employees, affiliates, advisors, representatives nor any other person accepts any liability whatsoever for any loss howsoever arising from any use of this Presentation
  • r its contents or otherwise arising in connection therewith.

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. This Presentation is not for distribution, directly or indirectly, to the public in the United States (including its territories and possessions, any State of the United States and the District of Columbia). These materials are not an offer or solicitation to purchase or subscribe for securities in the United States or any other jurisdiction. Securities may not be

  • ffered or sold in the United States absent registration with the U.S. Securities and Exchange Commission or an exemption from registration under the U.S. Securities Act of

1933, as amended. ALROSA does not intend to register any part of any offering in the United States or to conduct a public offering of any of its securities in the United States. By attending a meeting where this Presentation is made or reviewing this Presentation you acknowledge and agree to be bound by the foregoing.

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SLIDE 3

4,688 2,598 1,923 1,594 1,113 1 000 2 000 3 000 4 000 5 000 Revenue EBITDA Net income Free Cash Flow Dividends

3

ALROSA is a diamond mining company delivering robust financial performance and substantial payouts to shareholders

33% The Russian Federation 25% The Republic of Sakha

(Yakutia)

8% Yakutian municipal districts 34% Free float

Shareholder structure Financial results summary

  • ALROSA is a diamond mining company with a 34% free-

float listed on the Moscow Exchange whose TSR after public

  • ffer
  • f

shares in 2013 exceeds market benchmarks

  • ALROSA’s investment case is underlying by significant

dividend payouts to shareholders supported by positive free cash flow

  • As of December 2017, Bloomberg consensus for 2017

results is that ALROSA’s shares offer double-digit FCF yield and high-single digit dividend yield

ALROSA MSCI Russia Index FTSE All-Share Mining Index

TSR since 2013

Sources: Company’s analysis, Bloomberg

2016, $ mln

(5%) (13%) 38%

as of December 2017

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SLIDE 4

Rough diamond production is dominated by few mining companies with the highest margins across diamond pipeline, where ALROSA benefits from leading market share of 28%

Source: AWDC Bain report “The Global Diamond Industry 2017”

Margins Players Top 5 players control ~ 70%

  • f the market

~ 5,000 players > 10,000 players Major retailers control ~ 35%

  • f the market

27‒28% 1‒4% 2‒4% 3‒11%

Diamond pipeline structure

~ 100 players

1‒4% Rough diamond production Sales of rough diamonds from major producers Cutting & polishing

  • f diamonds

Diamond jewelry manufacturing Retail sales of diamond jewelry 28% ALROSA 20% De Beers 13% Rio Tinto 28% Other 6% DDC 5% Catoca

World diamond production

Sources: Company’s analysis, Kimberley Process statistics 4

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SLIDE 5

3 5 2013 2014 2015 2016 2017F 5

Diamond market grew 2-4% over recent years driven by demand for diamond jewelry

Rough diamond prices increased in line with market over last years World diamond jewelry sales grew 4% annually since 2010 +4% CAGR diamond jewelry market, $ bn

50 100 2010 2011 2012 2013 2014 2015 2016 2017F Source: AWDC Bain report “The Global Diamond Industry 2017”

Rough diamond sales follow trend of demand for diamond jewelry and are influenced by midstream inventories

5 10 15 20 2010 2011 2012 2013 2014 2015 2016 2017F ALROSA Other producers

+2% CAGR Midstream inventories are at normal levels over recent years midstream inventory surplus, $ bn sales of rough diamonds, $ bn

100 122 177 142 143 153 130 131 133 100 200 2009 2010 2011 2012 2013 2014 2015 2016 2017

+4% CAGR

Inventory decline due to decreased rough diamond sales by mining companies Stable inventory due to increased rough diamond sales back to normal levels Sources: AWDC Bain report “The Global Diamond Industry 2017”, Company’s analysis Source: Company’s analysis

end of period price index for ALROSA rough diamonds, 31.12.2009=100

Source: Company’s analysis

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SLIDE 6

Demand for diamond jewelry is expected to grow 1-4% annually driven by consumption in the US, China and India. Demand for natural diamonds is supported by DPA activities

6

50 100 2016 2021F 2026F

World diamond jewelry demand, optimistic scenario

US China India Other

$ bn

CAGR 2016–2030F 7% 4% 4% 4%

Source: AWDC Bain report “The Global Diamond Industry 2017”

50 100 2016 2021F 2026F

World diamond jewelry demand, base case scenario

US China India Other

$ bn

CAGR 2016–2030F 3% 2% 1% 1% Total Total 4% 1%

  • Major

diamond mining companies established Diamond Producers Association (DPA) in 2015 to promote consumer demand for diamonds

  • Generic marketing campaign with a tagline “Real is Rare. Real

is a Diamond” was first launched by DPA in the US in 2016 and in India in 2017, DPA’s budget for 2017 is $59 mln

  • DPA’s activities in 2018 will continue in the US and expand to

China, India and Europe

2030F 2030F

Source: AWDC Bain report “The Global Diamond Industry 2017”

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SLIDE 7

9 7 6 6 6 4 4

Diavik Ekati Argyle Nyurbinskaya Catoca Finsch Orapa

Development process Development process + dewatering

80 115 150 150 125 2014 2017F 2020F 2023F 2027F 2030F

Supply of diamonds is constrained by lack and complexity of new diamond discoveries and significant time required to ramp-up production

7

World diamond production seems to have passed its peak in 2017

mln ct

Gahcho Kue Grib Renard Argyle Diavik

Discovery-to-production period, years

1954- 1956 1960 1969 1974- 1975 1994 1996 2006

I II III

Aikhal International Jubilee Botuobinskaya Nyurbinskaya Mayskaya

Host rocks Sandstones Kimberlite pipes 60 m 9 m 80 m 70 m

Year of discovery

Discovery and development of new kimberlite pipes are much more challenging now No less than 4 years is required to ramp-up full scale production on a diamond mine

Source: Company’s analysis

Mir

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SLIDE 8

8

ALROSA’s diamond production is mainly located in Far East region of Russia and is diversified between different mines and deposits

Severalmaz Aikhal Division 21% 8% 9% 5% Nyurba Division Mirny Division Udachny Division Almazy Anabara Nizhne-Lenskoe

Aikhal pipe Jubilee pipe Komsomolskaya pipe Nyurbinskaya pipe Botuobinskaya pipe Alluvial deposits (2) Mir pipe International pipe Alluvial deposits (3) Udachny pipe Zarnitsa pipe Alluvial deposits (1) Alluvial deposits (5) Alluvial deposits (4) Arkhangelskaya pipe Karpinskogo-1 pipe

1,030 mln ct

Total resources, including reserves

653 mln ct

Total reserves Share of open-pit mining from 8 mines in 2016 Share of underground mining from 4 mines in 2016 Share of alluvial mining from 15 alluvial placers in 2016

33% 18% 6%

51% 30% 19%

Geography of production assets

Republic of Sakha (Yakutia) Arkhangelsk Region Russian Federation 2.2

mln ct

12.2

mln ct

6.8

mln ct

7.8

mln ct

3.2

mln ct

3.4

mln ct

1.8

mln ct

94% 6%

Angola ALROSA owns 32.8%

  • f Catoca Ltd (Angola)

Note: percentage and absolute figures indicate the share of division in 2016 ALROSA diamond production

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SLIDE 9

2.2 1.5 2.2 3.2 2.7 9.0 9.1 9.4 9.2 10.1 8.2 5.9 5.4 1.6 2.0 2.2 2.4 3.3 3.8 4.2 1.3 1.6 3.9 5.7 5.7 1.8 1.8

2013 2014 2015 2016 2017F 2018F 2019F 2020F

Verkhne-Munskoye Udachny UG mine Severalmaz Jubilee pipe Mir UG mine Other

ALROSA’s medium-term production target is 36-38 mln carats annually grading in ~ 1.0 carat per ton range, CAPEX is expected to decrease down to RUB 26-28 bn due to completion of major expansion projects

9

2013 2014 2015 2016 2017F 2018F 2019F 2020F CAPEX, including 38.2 36.1 34.2 31.8 30.1 31.6 26.4 28.0 major expansion projects: 11.7 10.5 8.6 8.4 7.4 11.5 3.7 4.3 Verkhne-Munskoye deposit

  • 0.5

3.3 4.2 9.2 1.4 1.7 Udachny underground mine 6.6 7.9 6.5 5.1 3.2 2.1 1.7 2.6 Severalmaz 5.1 2.6 1.5

  • 0.2

0.7

  • mln ct

ALROSA’s diamond production

36.9 36.2 38.3 37.4 39.3 36.6 38.2 38.2

RUB bn

Note: detailed ALROSA’s production plan is disclosed in the Appendix (slide 21)

ALROSA’s capital expenditure

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SLIDE 10

10

Management team is fully committed to deliver on ALROSA’s development plans

Operational Team Executive Team CEO 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)

COO Igor Sobolev First Vice President – Chief Operating Officer

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

at Norilsk Nickel (2000‒2007)

CFO Alexey Philippovskiy Chief Financial Officer

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

Sales Yuri Okoyomov Vice President for sales

  • Joined the Company in 1993
  • Vice President of ALROSA for marketing and sales since August 2009

Udachny division

Alexander Makhrachev Director, Udachny mining and processing division

  • Joined the Company in 1979
  • Over 36 years of industry experience

Aikhal division

Ravil Sanatulov Director, Aikhal mining and processing division

  • Joined the Company in 1986
  • Over 29 years of industry experience

Nyurba division

Vasiliy Kurnev Director, Nyurba mining and processing division

  • Joined the Company in 1984
  • Over 32 years of industry experience

Almazy Anabara

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)

Severalmaz

Andrey Pismenny CEO Severalmaz

  • Joined the Company in 1997
  • Over 18 years of industry experience
  • Chief engineer of ALROSA in 2010‒2015
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SLIDE 11

11

~70% ~98%

ALROSA’s sales are driven by gem-quality diamonds sold in parcels based on gemological characteristics

Share of gem-quality diamonds in... sales production Gem-quality diamonds (˃1.5 mm) Non-gem quality diamonds (≤1.5 mm) 5-10CT Stones & Shapes Yellow 5-10CT Rejections Brown 5-10CT Black Makeable White 26 sizes 16 shapes 5 clarity categories 34 colours

204 rough diamond boxes 8,013 classification positions

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SLIDE 12

12

ALROSA has a diverse distribution platform based on long-term agreements with its clients

ALROSA has 58 clients under long-term contacts who account for ~70% of Company`s sales ALROSA sells rough diamonds to world major diamond trading and polishing centers

69% Long-term contracts 16% Tenders 49% Belgium 17% India 10% Russia 6% UAE 3% Other 15% Spot sales 11% Israel 4% China

rough diamond sales channel breakdown geography of sales

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SLIDE 13

13

ALROSA’s EBITDA margin is at 50’s, FCF is positive, management is committed to control costs

Production expenses breakdown

22% Extraction tax 43% Wages, salaries and

  • ther staff costs

13% Materials 2% Transport 12% Fuel and energy 7% Services 1% Other

9M2017 9M2016 2016 2015 FX Production, mln ct 29.5 27.9 37.4 38.3 Sales, mln ct 31.8 30.0 40.0 30.0 Sales above/(below) production, mln ct 2.3 2.1 2.6 (8.3) Revenue 214.5 255.6 317.1 224.5 COGS (86.7) (80.0) (105.1) (74.1) SG&A (11.1) (11.2) (15.6) (12.9) Other operating income/(expenses), net (16.7) (14.4) (20.0) (19.0) EBITDA 100.0 150.0 176.4 118.5 EBITDA margin 47% 59% 56% 53% Net profit 61.9 117.0 133.5 32.2 ОСF 80.3 126.0 143.2 75.5 Capex (18.4) (21.9) (31.8) (34.2) Free cash flow 61.9 104.1 111.4 41.3 Note: degree of FX exposure ( low / medium / high) based on Company`s estimates

Financial results summary

  • ALROSA’s revenue is supported by sales of rough

diamonds from accumulated inventories

  • Revenue is exposed to RUB/USD as diamond prices are

set in USD, major parts of OPEX and CAPEX are linked to RUB, financial costs are naturally hedged as borrowing currency is mostly USD

  • Costs are competitive against industry, management is

committed to keep costs below inflation in Russia (low single-digit number) due to focus

  • n

internal efficiencies

RUB bn, unless otherwise stated as of 9M 2017

45 90

African companies Canadian companies

ALROSA cash cost per carat vs industry

Source: Company’s analysis

43

$/ct

ALROSA

slide-14
SLIDE 14

14

ALROSA runs operational excellence program which has already resulted in RUB 6.5 bn

  • f efficiencies in 2017

Operational excellence program includes dozens of initiatives

  • RUB 5.0 bn as a result of introducing dense-medium modules at Udachny’s

and Aikhal’s processing plants, which ensured higher diamond extraction and integrity at the early stages of ore processing

  • RUB 1.0 bn as a result of capping labour resources in ALROSA's

construction and geological exploration operations, with the headcount reduced accordingly

  • RUB 0.5 bn as a result of other initiatives, including the replacement of

supersize mine trucks with road trains to transport ore from Udachny Division's Zarnitsa pit Efficiencies achieved in 2017 amounted to RUB 6.5 bn

Administrative costs Production development Maintenance Energy use Organizational structure Ore beneficiation Mining Transport Automation

slide-15
SLIDE 15

15

Economic efficiency of underground mining is fostered by block caving mining method

Next production level Production level Backfilled production level Next production level

Block caving method Traditional cut-and-fill mining

Mir underground mine International underground mine Aikhal underground mine Udachny underground mine

Cut-and-fill mining method at Udachny underground mine would have required more than 330 thousand tons of cement a year (~ RUB 1 bn in current prices), which is an equivalent of total cement output in the Republic of Sakha (Yakutia).

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SLIDE 16

Cost of underground production per carat is close to open-pit mining due to higher grade at underground mines

16

  • Underground mining cost of production per ton of ore is

higher than open-pit mining cost of production

  • Due to the fact that underground mining average grade

is also higher vs. open-pit mining, underground mining cost of production per carat is close to open-pit mining

Cash cost of production per ton of ore Cash cost of production per carat

Aikhal UG mine Open-pit mines

~25 ~42

Aikhal UG mine Open-pit mines

~160 ~43

ALROSA total

~40 ~16

Alluvials ALROSA total

~43 ~40

Alluvials

$/ct $/t t ct

0.40 1.02 6.42 6.85

Alluvials Open-pit mines Aikhal underground mine International underground mine

0.94

ALROSA total

Range of average mined diamond grade ct/t

~281

International UG mine

~41

International UG mine

16

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SLIDE 17

ALROSA’s liquidity improved significantly over recent years with leverage below 1.0x and comfortable debt-maturity profile

Loans and borrowings Loans and borrowings breakdown

211 14 720 1,010 0.5 0.3 2017 2018 2019 2020 2021 2022

Bank loans Borrowings (including Eurobonds)

Maturity profile of loans and borrowings

as of 30 September 2017, $ mln

49% Bank loans 51% Borrowings (including Eurobonds) 88% US dollar-denominated debt 89% Long-term debt

$ mln

3,881 3,329 2,952 4,025 4,217 3,496 3,057 2,344 1,956 2009 2010 2011 2012 2013 2014 2015 2016 30.09.2017

Total debt/ EBITDA 6.1x 2.9x 1.5x 2.0x 2.0x 2.1х 1.9x 0.8x 0.9х

Net debt / EBITDA as of 30 September 2017 0.7x 12% RUB-denominated debt 11% Short-term debt

as of 30 September 2017, $ mln

17

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SLIDE 18

18

ALROSA’s dividend policy is to distribute not less than 35% of net profit as dividends, over last years payout ratio was 50% of net profit driven by robust free cash flow

Operating cash flow, capital expenditures, free cash flow, net income attributable to shareholders and dividends

RUB bn

53.5 15.4 30.9 10.8 (38.2)

Operating cash flow CAPEX FCF Net income attributable to shareholders Dividends

1.47

2013

78.1 42.1 (17.9) 10.8 (36.1)

Operating cash flow CAPEX FCF Net income attributable to shareholders Dividends

5.71 1.47

2014

RUB per share

4.26 2.09 143.2 111.4 131.4 65.8 (31.8)

Operating cash flow CAPEX FCF Net income attributable to shareholders Dividends

8.93

2016

17.85 15.12 2.44 75.5 41.3 30.7 15.4 (34.2)

Operating cash flow CAPEX FCF Net income attributable to shareholders Dividends

5.61

2015

2.09 4.17

slide-19
SLIDE 19

19

Appendix

  • Production forecast
  • Environmental and social responsibility
  • Supervisory Board overview
slide-20
SLIDE 20

20

ALROSA’s production forecast

Type of mining Grade, ct/t Price per carat, $ Cash costs per carat, $ Diamond production forecast, ‘000 ct as of 9M 2017 2017F 2018F 2019F 2020F Aikhal Division Jubilee pipe

  • pen-pit

1.26 139 27 10,135 8,207 5,885 5,410 Aikhal underground mine underground 6.42 47 25 2,503 2,723 2,725 2,708 Komsomolskaya pipe

  • pen-pit

0.36 233 186 363 370 352 421 Zaria pipe

  • pen-pit

0.28 244 234

  • 13

75 Mirny Division International underground mine underground 6.85 206 41 3,790 3,693 3,874 3,829 Mir underground mine underground 3.68 127 47 2,705

  • Alluvial and technogenic deposits

alluvial 0.19 204 69 721 692 886 885 Udachny Division Udachnaya pipe

  • pen-pit

0.77 88 37 974

  • Udachny underground mine

underground 1.78 101 81 1,634 3,872 5 695 5,673 Zarnitsa pipe

  • pen-pit

0.30 162 101 818 995 711 843 Verkhne-Munskoe deposit

  • pen-pit

0.63 126 98 45 153 1,662 1,827 Alluvial deposits alluvial 0.28 87 88 293 268 257

  • Nyurba Division

Nyurbinskaya pipe

  • pen-pit

4.91 98 37 5,156 4,195 3,780 3,365 Botuobinskaya pipe

  • pen-pit

6.12 98 30 1,007 1,100 2,139 1,866 Alluvial deposits alluvial 1.92 98 52 1,549 2,056 1,402 2,151 Severalmaz Arkhangelskaya pipe

  • pen-pit

0.66 52 30 990 1,503 2,135 2,336 Karpinskogo-1 pipe

  • pen-pit

0.94 53 30 1,408 1,817 1,688 1,862 Almazy Anabara alluvial 0.40 72 31 5,179 4,977 4,973 5,000 ALROSA 0.94 113 43 39,270 36,620 38,176 38,249 underground 4.08 112 46 10,631 10,288 12,294 12,210

  • pen-pit

1.02 141 42 20,896 18,339 18,305 18,005 alluvials 0.40 87 40 7,743 7,993 7,517 8,034

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SLIDE 21

21

ALROSA’s low environmental impact is acknowledged by ESG ratings

3rd place (out of 33) in the “First rating of environmental performance

  • f

mining companies in Russia” (held by the WWF and the Ministry

  • f

Natural Resources and Environment of Russian Federation)

15.2 11.3 2012 2016

Water intake

(26%) 2,853 1,080 2012 2016

Area of annually disturbed land

(62%) 0.19 0.10 2012 2016

LTIFR

number of lost time injuries per 1 mln hours worked (47%) ha mln m3

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SLIDE 22

22 Anton Siluanov Finance Minister of the Russian Federation Chairman of the Board of Directors, ALROSA Yegor Borisov Head of the Republic of Sakha (Yakutia) First Deputy Chairman of the Supervisory Board, ALROSA Alexander Galushka Minister for the Development

  • f the Russian Far East

Deputy Chairman of the Supervisory Board, ALROSA Sergey Barsukov Vice-President of ALROSA Nominated by: the Russian Federation Nominated by: the Republic of Sakha (Yakutia) Nominated by: the Russian Federation Nominated by: the Russian Federation Previously held positions include:

  • 2005-2011 – Deputy Minister of

Finance of the Russian Federation

  • Since 2011 – Minister of Finance of the

Russian Federation Previously held positions include:

  • 2003-2010 – Chairman of the

Government of the Republic of Sakha (Yakutia)

  • 2010-2014 – President of the Republic
  • f Sakha (Yakutia)
  • Since 2014 – Head of the Republic of

Sakha (Yakutia) Previously held positions include:

  • 2010-2012 – President, Co-chairman of

All-Russian public organisation Delovaya Rossiya

  • 2011-2012 – member of state

commission on the socio-economic development of the Far East, the Republic of Buryatia, the Transbaikal and Irkutsk regions

  • 2013-2013 – Co-chairman, Central

Headquarters of the All-Russian Public Movement People’s Front – For Russia

  • Since 2013 – Minister for the

Development of the Russian Far East Previously held positions include:

  • 2007-2008 – First Deputy General

Director, Agency for Housing Mortgage Lending (AHML)

  • 2008-2010 – Assistant to Vice

Chairman of the Russian Federation Government – Russian Federation Minister of Finance

  • 2010-2017 – Director, Financial Policy

Department, Ministry of Finance of the Russian Federation

  • Since 2017 – Vice-President of

ALROSA Georgy Basharin Deputy Head of Mirninsky Municipal District Administration

  • f the Republic of Sakha

(Yakutia) Maria Gordon Independent director of the Supervisory Board, ALROSA Evgenia Grigorieva Minister of Property and Land Relations of the Republic of Sakha (Yakutia) Galina Danchikova Deputy at State Duma of the Russian Federation Nominated by: Municipal Districts of the Republic of Sakha (Yakutia) Nominated by: minority shareholders as an independent director Nominated by: the Republic of Sakha (Yakutia) Nominated by: the Republic of Sakha (Yakutia) Previously held positions include:

  • Since 2008 – Deputy Head of Mirninsky

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

  • 2007-2010 – Deputy Chair of the

Government of the Republic of Sakha (Yakutia)

  • 2010-2016 – Chair of the Government
  • f the Republic of Sakha (Yakutia)
  • Since 2016 – Deputy at State Duma of

the Russian Federation

Supervisory Board overview (1/2)

2 3 1 6 7 4 5 8

slide-23
SLIDE 23

Kirill Dmitriev CEO of Russian Direct Investment Fund Sergey Ivanov President (CEO) of ALROSA Dmitry Konov Member of the Board of Directors, Chairman of the Management Board at SIBUR Holding Valentina Lemesheva Independent director of the Supervisory Board, ALROSA Nominated by: the Russian Federation 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 – Development Director,

President of Icon Private Equity Limited Representative Office

  • Since 2011 – CEO of Russian Direct

Investment Fund 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 – President (CEO) of

ALROSA Previously held positions include:

  • 2011-2016 – CEO of SIBUR
  • Since 2007 – Member of the Board of

Directors, Chairman of the Management Board (since 2009) at SIBUR Holding Previously held positions include:

  • 2002-2014 – Chair of the State

Committee for Pricing Policy – Regional Energy Commission of the Republic of Sakha (Yakutia)

  • Since 2015 – Independent director of

the Supervisory Board of ALROSA Sergey Mestnikov CEO of Trust Fund for Future Generations of the Republic of Sakha (Yakutia) Oleg Fedorov Independent director of the Supervisory Board, ALROSA Alexey Chekunkov CEO of Far East and Baikal Region Development Fund Nominated by: the Republic of Sakha (Yakutia) Nominated by: minority shareholders as an independent director Nominated by: the Russian Federation Previously held positions include:

  • 2010-2012 – Deputy Head, Head,

Secretariat of Chairman of the Government

  • f 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:

  • 1999-2002 – Executive Committee

member, SRO NAUFOR

  • 2002-2010 – Deputy Head, Supervisory

Board member, IPA

  • 2003-2009 – Executive Director,

Corporate Finance (IB), UFG/Deutsche Bank Ltd

  • 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:

  • 2009-2011 – Head of New Nations

Capital Investment Company

  • 2011-2013 – Director, member of the

board, member of investment committee of the Russian Direct Investment Fund

  • Since 2014 – General Director of the

Far East Development Fund 23

Supervisory Board overview (2/2)

10 15 14 9 13 12 10 11

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Thank you!

24 Ozerkovskaya emb. Moscow 115184 Russia

  • Tel. +7 495 745 58 72

IR@alrosa.ru

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