Investor presentation Disclaimer The information contained herein - - PowerPoint PPT Presentation
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
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.
275 127 79 74 50 100 150 200 250 300 Revenue EBITDA Net Profit Free Cash Flow
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 March 2018, ALROSA shares offer double-digit
FCF yield and dividend yield of c. 6%*
71% (5%) 19% ALROSA MSCI Russia Index FTSE All-Share Mining Index
TSR since 2013
Sources: Company’s analysis, Bloomberg
2017, RUB bn as of March 2018
* Assuming 50% payout of 2017 net profit, decision TBD on AGM in June 2018
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
3 5 2013 2014 2015 2016 2017E 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 2017 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 2017E 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
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 India and
expand to China and Europe
2030F 2030F
Source: AWDC Bain report “The Global Diamond Industry 2017”
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
8
ALROSA’s diamond production is mainly located in Far East region of Russia and is diversified between different mines and deposits
1,030 mln ct
Total resources, including reserves
653 mln ct
Total reserves Share of open-pit mining from 9 mines in 2017 Share of underground mining from 4 mines in 2017 Share of alluvial mining from alluvial deposits in 2017
53% 27% 20%
Geography of production assets
Republic of Sakha (Yakutia) Arkhangelsk Region Russian Federation Severalmaz
Arkhangelskaya pipe Karpinskogo-1 pipe
7% 2.6
mln ct
Aikhal Division
Aikhal pipe Jubilee pipe Komsomolskaya pipe
33% 13.0
mln ct
Nyurba Division
Nyurbinskaya pipe Botuobinskaya pipe Alluvial deposits
19% 7.7
mln ct
18% Mirny Division
Mir pipe International pipe Alluvial deposits
7.2
mln ct
10% Udachny Division
Udachny pipe Zarnitsa pipe Zapolyarnaya Pipe (Verkhne-Munskoye deposit) Alluvial deposits
3.8
mln ct
13% Almazy Anabara & Nizhne-Lenskoye
Alluvial deposits
5.2
mln ct
93% 7%
Angola ALROSA owns 32.8%
- f Catoca Ltd (Angola)
Note: percentage and absolute figures indicate the share of division in 2017 ALROSA diamond production
2.2 1.5 2.2 3.2 2.8 9.0 9.1 9.4 9.2 10.2 8.2 5.9 5.4 1.6 2.0 2.2 2.6 3.3 3.8 4.2 1.3 1.6 3.9 5.7 5.7 1.8 1.8
2013 2014 2015 2016 2017 2018F 2019F 2020F
Verkhne-Munskoye Udachny UG mine Severalmaz Jubilee pipe Mir UG mine Other
ALROSA’s medium-term production target is 37-38 mln carats annually grading in a range of 0.9-1.0 carat per ton, CAPEX is expected to decrease down to RUB 26-28 bn due to completion of major expansion projects
9
2013 2014 2015 2016 2017 2018F 2019F 2020F CAPEX, including 38.2 36.1 34.2 31.8 26.9 31.6 26.4 28.0 major expansion projects: 11.7 10.5 8.6 8.4 6.4 11.5 3.7 4.3 Verkhne-Munskoye deposit
- 0.5
3.3 3.7 9.2 1.4 1.7 Udachny underground mine 6.6 7.9 6.5 5.1 2.7 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 39.6 36.6 38.2 38.2
RUB bn
Note: detailed ALROSA’s production plan is disclosed in the Appendix (slide 20)
ALROSA’s capital expenditure
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 Deputy CEO – Chief Operating Officer
- Joined the Company in 2007
- Head of Capital construction division, mining & metallurgical directorate
at Norilsk Nickel (2000‒2007)
CFO Alexey Philippovskiy Deputy CEO – 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 Deputy CEO for Sales
- Joined the Company in 1993
- Vice President of ALROSA for marketing and sales since August 2009
Mirny division
Alexey Kovalenko Director, Mirny mining and processing division
- Joined the Company in 1996
- Over 20 years of industry experience
Udachny division
Alexander Makhrachev Director, Udachny mining and processing division
- Joined the Company in 1979
- Over 38 years of industry experience
Aikhal division
Ravil Sanatulov Director, Aikhal mining and processing division
- Joined the Company in 1986
- Over 30 years of industry experience
Nyurba division
Vasiliy Kurnev Director, Nyurba mining and processing division
- Joined the Company in 1984
- Over 33 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 20 years of industry experience
- Chief engineer of ALROSA in 2010‒2015
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... value volume 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
12
ALROSA has a diverse distribution platform based on long-term agreements with its clients
Currently ALROSA has 65 clients under long-term contracts, which accounted for 77% in 2017 rough diamond sales ALROSA sells rough diamonds to world major diamond trading and polishing centers
77% Long-term contracts 16% Tenders 51% Belgium 16% India 10% Russia 7% UAE 2% Other 7% Spot sales 10% Israel 4% China
rough diamond sales channel breakdown geography of sales
13
ALROSA’s EBITDA margin is at 50’s, FCF is positive, management is committed to control costs
2017 2016 2015 FX Production, mln cts 39.6 37.4 38.3 Run-of-mine ore, mln m3 77.7 72.1 75.3 Sales, mln cts 41.2 40.0 30.0 Sales above/(below) production, mln cts 1.6 2.6 (8.3) Revenue 275,381 317,090 224,524 COGS (110,118) (105,083) (74,144) SG&A (13,969) (13,835) (12,179) Other operating income/(expenses), net (24,404) (21,754) (19,703) EBITDA 126,890 176,418 118,498 EBITDA margin 46% 56% 53% Net profit 78,616 133,471 32,192 ОСF 100,464 143,138 75,541 Capex (26,944) (31,752) (34,241) Free cash flow 73,520 111,386 41,300
Financial results summary
Note: degree of FX exposure ( low / medium / high) based on Company`s estimates
- 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
- Due to management efforts costs per carat and per cubic meter
- f rock mass excluding one-off elements and non-production
related items went down in 2017 by 2% and 7% respectively
RUB mln, unless otherwise stated 2017 2016 Y-o-Y change Wages, salaries and other staff costs (43,554) (43,686) (<1%) Mineral extraction tax (21,782) (22,188) (2%) Fuel and energy, including: (12,686) (14,493) (12%) gain from electricity costs reduction 2,106
- Materials
(13,287) (13,592) (2%) Services (7,955) (7,714) 3% Transport (2,178) (2,215) (2%) Other (1,313) (588) 1.3х Movement in inventory of ores and concentrates (2,044) 2,006 (1.0x) Movement in inventory of diamonds (5,303) (1,850) 2.9x Cost of diamonds for resale (16) (763) (98%) Cost of sales (excluding depreciation) (110,118) (105,083) 5% SG&A (13,969) (13,835) <1% Exploration expenses (8,761) (8,202) 7% Social costs (5,973) (6,485) (8%) Taxes other than income tax, extraction tax and payments to social funds (5,451) (5,718) (5%) Contribution to DPA (1,491) (279) 4.3х Losses from idle production facilities due to accident at the Mir underground mine (1,101)
- Other
(1,627) (1,070) 52% Other operating income and expenses (24,404) (21,754) 12% Total expenses (148,491) (140,672) 6% Non-production related items (43,426) (40,070) 8% Total expenses, net of non-production related items (105,065) (100,602) 4% Total expenses, RUB per carat 2,650 2,693 (2%) Total expenses, RUB per m3 1,325 1,424 (7%) non-production related items
Expenses
RUB mln, unless otherwise stated
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
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).
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
~28 ~39
Aikhal UG mine Open-pit mines
~161 ~45
ALROSA total
~42 ~19
Alluvials ALROSA total
~42 ~44
Alluvials
$/ct $/t t ct
0.42 1.19 5.83 6.89
Alluvials Open-pit mines Aikhal underground mine International underground mine
1.01
ALROSA total
Range of average mined diamond grade ct/t
~286
International UG mine
~42
International UG mine
16
More than twofold debt reduction since 2016 resulted from early repayment of bank loans
17
Loans and borrowings Loans and borrowings breakdown
1,020 1 1 2018 2019 2020 2021 2022
Bank loans Borrowings (including Eurobonds)
Maturity profile of loans and borrowings
As of 20 March 2018, $ mln
2% Bank loans 98% Borrowings (including Eurobonds) 98% US dollar-denominated debt 100% Long-term debt
$ mln
4,217 3,496 3,057 2,344 1,621 1,022 2013 2014 2015 2016 2017 20.03.2018
Total debt/ EBITDA 2.0x 2.1х 1.9x 0.8x 0.7х
2% RUB-denominated debt
As of 20 March 2018
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 profit attributable to shareholders and dividends
RUB bn
2014
78.1 42.1 (17.9) 10.8 (36.1)
Operating cash flow CAPEX FCF Net profit attributable to shareholders Dividends
5.71 1.47
2015
RUB per share
2017
2.44 75.5 41.3 30.7 15.4 (34.2)
Operating cash flow CAPEX FCF Net profit attributable to shareholders Dividends
5.61
2016
2.09 4.17 143.1 111.4 131.4 65.8 (31.8)
Operating cash flow CAPEX FCF Net profit attributable to shareholders Dividends
8.93 17.85 15.12
18
100.5 73.5 77.1 (26.9)
Operating cash flow CAPEX FCF Net profit attributable to shareholders Dividends
10.47 9.98
Decision TBD
- n AGM in
June 2018
19
Appendix
- Production forecast
- Environmental and social responsibility
- Supervisory Board overview
- Resources inclusive of reserves according
to JORC Code
20
ALROSA’s production forecast
Type of mining Grade, ct/t Price per carat, $ Cash costs per carat, $ Diamond production forecast, ‘000 ct 2017 2017 2018F 2019F 2020F Aikhal Division Jubilee pipe
- pen-pit
1.33 141 26 10,160 8,207 5,885 5,410 Aikhal underground mine underground 5.83 47 28 2,480 2,723 2,725 2,708 Komsomolskaya pipe
- pen-pit
0.36 239 187 370 370 352 421 Zaria pipe
- pen-pit
0.28 244 234
- 13
75 Mirny Division International underground mine underground 6.89 210 42 3,699 3,693 3,874 3,829 Mir underground mine underground 3.71 131 46 2,772
- Alluvial and technogenic deposits
alluvial 0.19 201 69 760 692 886 885 Udachny Division Udachnaya pipe
- pen-pit
0.63 90 42 1,046
- Udachny underground mine
underground 1.87 103 78 1,615 3,872 5 695 5,673 Zarnitsa pipe
- pen-pit
0.28 165 110 786 995 711 843 Verkhne-Munskoe deposit
- pen-pit
1.07 126 67 80 175 1,804 1,827 Alluvial deposits alluvial 0.26 89 97 295 246 115
- Nyurba Division
Nyurbinskaya pipe
- pen-pit
4.80 98 44 4,774 4,195 3,780 3,365 Botuobinskaya pipe
- pen-pit
6.12 98 44 1,211 1,100 2,139 1,866 Alluvial deposits alluvial 1.97 98 44 1,728 2,056 1,402 2,151 Severalmaz Arkhangelskaya pipe
- pen-pit
0.70 54 31 1,283 1,503 2,135 2,336 Karpinskogo-1 pipe
- pen-pit
0.95 55 31 1,359 1,817 1,688 1,862 Almazy Anabara alluvial 0.40 74 38 5,197 4,977 4,973 4,999 ALROSA 1.01 117 42 39,614 36,620 38,176 38,250 underground 4.11 135 45 10,566 10,288 12,294 12,210
- pen-pit
1.19 118 39 21,069 18,361 18,506 18,005 alluvials 0.42 92 44 7,979 7,971 7,376 8,035
21
ALROSA’s low environmental impact, as well as efficient information disclosure are acknowledged by ESG ratings
3rd place (out
- f
33) in the “First rating
- f
environmental performance of mining companies in Russia” (held by the WWF and the Ministry of Natural Resources and Environment of Russian Federation) Rated among top-10 Russian companies with transparent corporate reporting according to Transparency International-Russia research
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
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 Deputy CEO 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 – Deputy CEO 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
Kirill Dmitriev CEO of Russian Direct Investment Fund Sergey Ivanov Chief Executive Officer 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 – 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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Resources inclusive of reserves according to JORC Code as of July 1, 2016 (1/2)
Deposit Resource category Tonnage ('000 t) Resource grade (cpt) Contained diamonds ('000 cts) Udachny division Udachnaya Pipe Measured 13,646 1.16 15,812 Indicated 83,524 1.53 127,801 Inferred 53,991 1.28 68,978 Zarnitsa Pipe Indicated 27,131 0.25 6,858 Verkhne-Munskoe Deposit Indicated 46,914 0.65 30,616 Inferred 17,168 0.57 9,857 Alluvial deposits Indicated 2,447 0.49 599 Inferred 1,176 0.63 373 Aikhal division Jubilee Pipe Measured 18,420 0.86 15,815 Indicated 88,138 0.74 65,401 Inferred 57,821 0.63 36,352 Aikhal Pipe Measured 4,361 4.97 21,666 Indicated 690 3.14 2,168 Inferred 1,716 4.06 6,966 Komsomolskaya Pipe Indicated 3,943 0.38 1,494 Zaria Pipe Indicated 12,392 0.28 3,515 Inferred 27,347 0.13 3,583 Mirny division Mir Pipe Measured 20,104 3.71 74,521 Indicated 16,538 3.36 55,525 Inferred 1,072 3.11 3,339 International Pipe Measured 1,448 8.21 11,888 Indicated 3,544 8.71 30,848 Alluvial deposits Measured 17,509 0.39 3,379 Indicated 22,273 0.21 2,322 Inferred 440 0.40 88 Solur-Vostochnaya placer Indicated 5,982 1.97 5,903 Inferred 959 1.80 865
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Deposit Resource category Tonnage ('000 t) Resource grade (cpt) Contained diamonds ('000 cts) Nyurba division Nyurbinskaya Pipe Measured 1,432 4.12 5,905 Indicated 7,095 4.32 30,623 Inferred 1,217 5.56 6,767 Botuobinskaya Pipe Measured 3,172 5.30 16,827 Indicated 10,139 5.90 59,814 Inferred 2,762 5.71 15,778 Maiskoye Kimberlite Body Indicated 1,231 6.03 7,426 Inferred 1,768 2.99 5,278 Alluvial deposits Measured 187 7.85 734 Indicated 6,897 4.67 16,094 Inferred 4,762 3.01 377 Lomonosov division (Severalmaz) Arkhangelskaya Pipe Measured 18,231 0.97 17,764 Indicated 29,689 1.08 32,184 Inferred 39,407 1.24 48,941 Karpinsky-1 Pipe Measured 6,971 1.08 7,501 Indicated 6,915 1.72 11,893 Inferred 8,615 1.16 9,993 Pionerskaya Pipe Indicated 58,330 0.47 27,530 Inferred 42,875 0.52 22,502 Lomonosov Pipe Indicated 32,523 0.50 16,230 Inferred 42,250 0.46 19,530 Almazy Anabara Indicated 38,160 1.33 25,373 Inferred 9,366 0.77 3,621 Nizhne-Lenskoye Indicated 10,793 0.57 3,075 Inferred 16,068 0.58 4,661 Total for ALROSA Group of Companies Measured 105,482 1.82 191,811 Indicated 515,285 1.09 563,291 Measured + Indicated 620,767 1.22 755,102 Inferred 330,779 0.83 274,629 Total 951,546 1.08 1,029,731
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Resources inclusive of reserves according to JORC Code as of July 1, 2016 (2/2)
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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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