ALROSA Investor Presentation Sberbank CIB “: The Inside Track” One-on-One Conference

Moscow, 4-5 June 2019 Disclaimer

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By reviewing and/or attending this Presentation you acknowledge and agree to be bound by the foregoing. Table of Content

01. About ALROSA – strategic priorities p.4

02. Market fundamentals p.11

03. Executing to strengthen our business p.22

04. Q1 2019 results p.38

05. Corporate governance p.47

06. Appendix 01

ABOUT ALROSA STRATEGIC PRIORITIES 03. Executing to strengthen 01. Strategic priorities 02. Market fundamentals 04. Q1 2019 results 05. Corporate governance our business 5 Leading Position on the Market … where about 70% of global rough output is controlled by BIG-3: ALROSA, and Rio Tinto About 70% of global rough diamond output is Core diamond mines of the BIG-3 market leaders attributable to BIG-3

1 26% ALROSA 5% Catoca

143 25% De Beers m ct 13% Rio Tinto Republic of 28% Other (Yakutia) 3% Petra Arkhangelsk Region Russian Federation

Canada Countries with the largest diamond reserves

5% Russia 7% 8% 45% Canada

35% Australia Other Angola Botswana Namibia Australia South Africa The global diamond reserves base is highly concentrated with the top 10 countries by reserves volume accounting for over 95% of total reserves.

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. 03. Executing to strengthen 01. Strategic priorities 02. Market fundamentals 04. Q1 2019 results 05. Corporate governance our business 6 High Quality Assets ALROSA’s assets geography

• 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 Republic of Sakha level 10% (Yakutia) Arkhangelsk Region 90% ALROSA sustainably tops the ranks Russian Federation as one of the most profitable miners EBITDA margin, %

2014 2015 2016 2017 2018 53% 3 Open-pit 42% 39% ALROSA owns 41% of 53% 1,064 m ct Total resources, Catoca Ltd (Angola) from 8 mines in 2018 including reserves 21% Angola 628 m ct Total reserves 23% Underground mining from 3 mines in 2018 24% Alluvial mining from alluvial deposits in 2018 ALROSA 1 Peer 1 Peer 2 Peer 3

Sources: Source: Companies data, AWDC Bain report “The Global Diamond Industry 2018”. 03. Executing to strengthen 01. Strategic priorities 02. Market fundamentals 04. Q1 2019 results 05. Corporate governance our business 7 Focus on Responsible Mining • Improving industrial safety with focus on prevention • Structural reform promoting a culture of safety • Diagnostic and treatment services aimed to promote disclosure and reduce illnesses

RUB 5.2 bn1: RUB 6 bn1: Capex on Environmental Activities Support to Local Communities Reduce CO2 emissions • Health 11% & Safety 1% • Maintain high share – at least 86% - of clean (incl. 4% Charity expenses renewables) electricity and heat consumption Local infrastructure Healthcare 54% 30% Education People of Other expenses ALROSA

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

Source: Company data and analysis. 1. Based on 2018 figures, excl. sponsorship and social infrastructure maintenance. 03. Executing to strengthen 01. Strategic priorities 02. Market fundamentals 04. Q1 2019 results 05. Corporate governance our business 8 Employee Safety is Our Top Priority Strong Commitment to Promote a Culture of Safety and Reduce the Number of Accidents

One of the lowest LTIFR compared to the diamond industry and other sectors1 Lost Time Injury Frequency Rate per 200,000 hours

Structural changes Procedures 8.7

6.3 HSE committees at all management levels Revised HSE Policy Tailored reporting system New approach to control to ensure prompt detection the flow of production and response to incidents 1.6 1.9 Regular HSE education HSE supervision at each and training sessions 2 0.5 stage of production chain 0.2

DPA Power Metals & Transportation Utilities / Mining Construction 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. 03. Executing to strengthen 01. Strategic priorities 02. Market fundamentals 04. Q1 2019 results 05. Corporate governance our business 9 Superior TSR Compared to Global Peers

Cumulative total USD TSR since ALROSA IPO in October 2013, %

200% +65.9% ALROSA

150% +54.4% Luxury goods producers

Diversified miners, incl. 100% +7.3% other diamond producers

50%

0% Oct-13 Mar-14 Aug-14 Jan-15 Jul-15 Dec-15 May-16 Oct-16 Apr-17 Sep-17 Feb-18 Jul-18 Jan-19 Jun-19

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. 03. Executing to strengthen 01. Strategic priorities 02. Market fundamentals 04. Q1 2019 results 05. Corporate governance our business 10 Journey Ahead

Developing Efficient Organisation... …and Taking Advantage of Strong Market Fundamentals…

Focus on Core Business and Unique Product Efficiency

…to Maximise Free Cash Prudent Capital Allocation Growing Demand Flow and Shareholder Returns

Conservative Financial Policy Declining Supply 02

MARKET FUNDAMENTALS 03. Executing to strengthen 01. Strategic priorities 02. Market fundamentals 04. Q1 2019 results 05. Corporate governance our business 12 Key Demand Drivers

Highlights Global luxury market breakdown in 2018E  Luxury market valued at c. €1.2 bn is steadily € bn 23 growing 50 41 41 1,171 190 71 495  Jewelry demand comprises 7% of global luxury market, and 31% of the personal luxury (annual 260 growth 5%)

 Most dynamic growth is concentrated in Asia incl. Personal Lux Hospitality Fine Fine food Fine art Designer Jets & Total Japan and China luxury cars wines furniture yachts 2018E 1  Diamond jewelry consumption is correlated with Personal luxury market growth by region 2018E USA GDP and disposable income 20%

9% 6% 3% 5% 0%

Europe Americas Japan Rest of Asia China RoW Market size 32% 31% 8% 15% 9% 5%

Source: Bain’s luxury goods worldwide market study (November 2018) 1. Trends at constant exchange rates. 03. Executing to strengthen 01. Strategic priorities 02. Market fundamentals 04. Q1 2019 results 05. Corporate governance our business 13 Strong Long Term Demand Outlook ...driven by disposable income growth and middle class expansion

Real disposable income growth Middle class growth Diamond jewellery demand growth forecast CAGR 2016-2030F m people over 2016-2030F By region, CAGR range 2016-2030F

Indi 7% 13.7 3-7%

Chin 6% 24.6 2-4%

US 2% 2.4 1-4%

Eur 1% 3.5 1-4%

RoW 3% 52.1 1-4%

Lower point refers to base case scenario; upper point to optimistic scenario

Source: Company data and analysis, Euromonitor, AWDC Bain report “The Global Diamond Industry 2018” (December 2018). 03. Executing to strengthen 01. Strategic priorities 02. Market fundamentals 04. Q1 2019 results 05. Corporate governance our business 14 Constrained Supply Outlook Depletion of deposits will result in diamond production declines in the coming years

2018 to 2023 supply forecast – 4 m ct down 2019 to 2023 major project capacity changes2 m ct m ct Depletion Expansion 143 141 144 140 139 1 136 Other (14,0) Argyle (Rio Tinto) South Africa Angola (3,5) Diavik (Rio Tinto) Australia (21.3) (2,9) Gahcho Kue (De Beers) Congo (0,9) Victor (De Beers) Botswana Ekati (Dominion Diamond) 4,6 Canada Luaxe (Catoca) 2,3 Chidliak (De Beers) 1,8 Russia 12.8 Star Orion South (Star Diamond) 1,8 Debswana (De Beers) 1,2 2018 2019E 2020E 2021E 2022E 2023E DBCM3 (De Beers) 1,1

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. 03. Executing to strengthen 01. Strategic priorities 02. Market fundamentals 04. Q1 2019 results 05. Corporate governance our business 15 Favorable Supply/Demand Fundamentals … will drive the market into a deficit and support positive diamond price pressure

Global Supply / Demand balance outlook Accumulated diamond deficit in 2019-2023 m ct m ct

~100 180 174 170

160

150 150 ~30

140 139

130 Base case scenario Optimistic scenario % of annual 120 20% 70% production’18 2018 2019E 2020E 2021E 2022E 2023E

Source: Company data and analysis, AWDC Bain report “The Global Diamond Industry 2018” (December 2018). 03. Executing to strengthen 01. Strategic priorities 02. Market fundamentals 04. Q1 2019 results 05. Corporate governance our business 16 Diamonds are Different from Commodities Mature demand and supply discipline result in low price volatility

Mature and stable consumer-driven demand Consolidated production, supporting Low price volatility compared to concentrated in developed markets supply discipline commodities Diamond jewellery retail sales, $, 2017 Top-3 producers market share, 2018 Low Price volatility 1 High India 6% RoW Diamonds 63% 11% 7% China Iron Ore 40% 33% 20% Japan Aluminium 31% 14% 5% Coking coal 36% EU 27% 9% Nickel 22% 22%

USA Copper 20% 18% 53% Silver 15% 34%

Developed markets Gold 11% 16% 67%

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. 03. Executing to strengthen 01. Strategic priorities 02. Market fundamentals 04. Q1 2019 results 05. Corporate governance our business 17 Demystifying LGDs

LGD myth #1: LGD myth #3: Case study: LGD positioning Myth: LGD and diamonds are identical Myth: Launch of LGD brand by a major natural by a major player Truth: LGD has the same physical and chemical diamond producer endorses LGD as a valid characteristics as diamonds, but they are not substitute to natural diamonds  Fixed price identical, and they are easily detected using Truth: Differentiated market positioning clearly  At ~20% of diamond price widely available identification equipment illustrates the differences between diamonds and for 1 ct stone LGD and will serve as a baseline for LGD perception by customers and industry players  Linear pricing  ¼ ct stone price is ¼ of 1 ct LGD myth #4: stone price LGD myth #2: Myth: LGDs is an eco-friendly and ethical  Standard, commodity-like Myth: FTC ruling stated that LGDs and diamonds alternative to diamonds colour, size and quality are the same Truth: Most LGDs are produced in China and India Truth: For LGDs, FTC guides require businesses to with coal-generated electricity, the estimated CO2  No specifications other than “disclose clearly and conspicuously that the emissions associated with production of 1 carat size and colour product is not a mined diamond”. In fact, in all key LGD are 3.0x greater vs natural diamond. Over markets LGDs have to be identified as manmade 99% of supplied natural diamonds are conflict free;  No grading reports or proceeds from sales support local communities certification and employment

Source: Company data and analysis, DPA, Trucost (S&P Global) report “The Socioeconomic and Environmental Impact of Large-Sacle Diamond Mining” (May 2019) 03. Executing to strengthen 01. Strategic priorities 02. Market fundamentals 04. Q1 2019 results 05. Corporate governance our business 18 LGD: the Future is History Similar scenario has already realised on the market for lab grown sapphires

Indexed price per carat of natural Price per carat discount Lab grown stones  Gem quality lab grown sapphires first sapphire¹ (2017)2 production share (2017) appeared in 1970s and started commercial Indexed to 1975 natural sapphire price $/ct production in 1990s (in nominal terms) Lab  Market share of lab grown sapphires stabilised in 2000’s at 15% production share c. 10,0x ~$1,500 ~80-90% grown 15%  End-users clearly marked the difference 6,0x 5,0x which is reflected in price-tag for 1 carat 1,0x ~$180 Natural 85% Synthetic production development does not 1970's 1980's 2000's 2010's Natural Lab grown adversely affect the market for natural stones Expert quotes

“We need to convince people that lab- “Rarity is a very important factor for “Lab-grown gemstones do not affect “Focus of lab-grown gemstones is grown gemstones are not fake stones. consumers, but lab-grown gemstones natural market. Easy to distinguish them cheaper low-end jewellery” We operate on market that is separate completely miss it” as they are of perfect quality: too well Head of Business Development, from natural gemstones” Head of Business Development, cut, no inclusions” Gemstone trading company President, Leading gemstone mining company President, Leading lab-grown gemstones company 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). 03. Executing to strengthen 01. Strategic priorities 02. Market fundamentals 04. Q1 2019 results 05. Corporate governance our business 19 Synthetic Stones: Key Marketing Messages Key marketing messages of lab grown sapphires producers are similar to the ones used now by LGD producers

Key marketing messages of lab-grown coloured gemstones (incl. sapphires) producers in 1960-2000s Key marketing messages of LGD producers today High quality Unique Innovative Real Ethical Value Created in America Dynamic Available Rare High quality Flexible Own design Above-ground Pure Own design Value Unique Good investment Affordable Identical Created in America Innovative Real Best of millenials Conflict-free Identical Affordable Guaranteed origin Eco-friendly

Key messages are similar, though now lab-grown diamond producers additionally explore “environmentally-” and “socially-friendly” trend

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. 03. Executing to strengthen 01. Strategic priorities 02. Market fundamentals 04. Q1 2019 results 05. Corporate governance our business 20 Diamonds and Their Synthetic Substitutes Have Different Price Drivers and Value to Consumers Natural diamonds LGD LGD is not the first synthetic alternative to diamonds LGD Moissanite

 Product of nature VS  Industrial product  Rare, unique and  Can be produced inherently valuable in any volume Price per  Highly consolidated  Highly fragmented $800 $400 supply, high entry barriers supply, low entry barriers carat ($)

White Zircon Cubic Zirconia

Price drivers: Price drivers: Rarity Cost Symbolism

Supply discipline Price per $75-100 $20-40 carat ($)

Source: Company data and analysis. 03. Executing to strengthen 01. Strategic priorities 02. Market fundamentals 04. Q1 2019 results 05. Corporate governance our business 21 Expanding LGD Discount Illustrates Different Market Perception of LGD vs. Diamonds LGD discount to natural diamonds Price of 1 carat polished diamond: Round, VS clarity, F-H colour

2016 2017 2018 Now

(16)% (18)%

(42)%

~(60)%

5x (81)%

LGD price discount to natural Lightbox discount to natural

Source: Company data and analysis, Paul Zimnisky report “2018: The Year of the Lab-created Diamond”. 03 EXECUTING TO STRENGTHEN OUR BUSINESS 03. Executing to strengthen 01. Strategic priorities 02. Market fundamentals 04. Q1 2019 results 05. Corporate governance our business 23 ALROSA: the Story of the Industry Leader in 4 Charts The largest and most profitable player in the industry

Reserves1 Production ‘18 EBITDA ‘18 EBITDA margin ‘18 m ct m ct $ bn %

Inferred ALROSA 628 37 2.52 52% 436 resources

Peer 1 212 35 1,2 20%

Peer 2 105 8 0,2 32%

Peer 3 43 4 0,2 37%

Peer 4 40 18 0,3 43%

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. 03. Executing to strengthen 01. Strategic priorities 02. Market fundamentals 04. Q1 2019 results 05. Corporate governance our business 24 Key Challenges for the Industry

… and how we address them from a value creation perspective

Lack of new deposits, limited • Investment in exploration and production development to 1 exploration success maintain reserves base and production

Grade deterioration, cost inflation 2 • Operational efficiency program and culture

Ever increasing competition from other luxury goods • Increasing our marketing efforts to promote 3 the unique appeal of our product Rising scrutiny over capital • Focus on core business 4 allocation discipline • Prudent investment program • Focus on shareholder returns 03. Executing to strengthen 01. Strategic priorities 02. Market fundamentals 04. Q1 2019 results 05. Corporate governance our business 25 Superior Exploration Capabilities … result in solid track record of resource replenishment at low finding costs Unique full-cycle exploration operations… Track record of resource replacement2 m ct

Field geological exploration 1 250 Technological center With exploration works (incl. drilling) Scientific research and analytics 1 000 +395 m ct … Backed up by advanced technologies 750 Complex Georadar footage Aerogeophysical Footage-5 500 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

High resolution Radio Wave seismic survey • Discovered resources: 395 m ct Geointroscopy in 3D / 2D • Average finding costs of $3.1 per ct1

Source: Company data and analysis. 1. For the period from 2009 to 2018. 2. Based on resources in accordance with the Russian classification. 03. Executing to strengthen 01. Strategic priorities 02. Market fundamentals 04. Q1 2019 results 05. Corporate governance our business 26 Stable Production Outlook …supported by development of new projects and debottlenecking Production outlook Key drivers m ct • Development of new projects/debottlenecking: 38.7 38.0 37.7 37.4 37.6 37-38 36.7 - V. Munskoye deposit: +c.2.0 m ct – full ramp-up by ‘20 4,9 Other 5,1 4,7 5,0 4,8 4,8 - Udachny underground mine: +c.3.0 m ct – full ramp- 5,1 5,1 5,0 5,0 Almazy Anabara 5,4 5,0 up by ‘21 2,0 Verkhne-Munskoye 1,8 1,9 1,8 0,2 1,8 Severalmaz: +c.1.4 m ct (debottlenecking) from ‘21-22 Severalmaz 3,6 3,9 4,2 - 4,8 5,1 5,0 Botuobinskaya 1,5 3,7 - Nyurba division: +c.2 m ct (debottlenecking) in ‘19-20 4,1 4,1 Nyurbinskaya 6,2 3,8 4,1 6,0 4,9 3,7 3,8 3,6 • Decline in diamond output:

5,2 4,5 - Jubilee: -1.5 m ct from ’19 (due to production at Jubilee 9,0 6,5 5,4 4,8 3,3 with a lower grade) 2,8 2,8 2,6 International 3,4 2,9 5,6 5,5 5,5 - International underground mine: decrease in ’18-’22 Udachny 3,7 4,6 2,5 due to mining and geological conditions 2018 2019E 2020E 2021E 2022E 2023E 2024-30E

Average Grade, carats per tonne 0.9 0.9 0.9 0.9 0.9 0.9 0.9

Source: Company data and analysis. 03. Executing to strengthen 01. Strategic priorities 02. Market fundamentals 04. Q1 2019 results 05. Corporate governance our business 27 Focus on Value Accretive Capex Capital-intensive phase is over Capex dynamics Key projects RUB bn Mining capacity  Total 2019-24 Capex – RUB 40 bn Capex:  Completion of Udachny underground mine construction 1 Investment program with target IRR of 20%+  Completion of Verkhne-Munskoye diamond deposit development  Construction of Maiskaya pipe 32  Construction of Zaria pipe 28 29 28 Equipment maintenance 6 27 26 2  Total 2019-24 Capex – RUB 55 bn 5 9 8 11 20 Infrastructure 18 Infrastructure 15  Total 2019-24 Capex – RUB 40 bn 17 17 5 3 14 11 6 Mining  Reconstruction of Mirny Airport: total Capex – ~RUB 10 bn to be invested in 2018-22 11 4 5 5 capacity 2  Gasification of production facilities in Udachny: total Capex – RUB 4.6 bn to be invested in 2019-23 10 Equipment 9 8 9 10 9 10 8 8 maintenance  Organization of production site for the needs of USO: total Capex – RUB 5.3 bn to be invested in 2019-20

2016 2017 2018 2019E 2020E 2021E 2022E 2023E 2024E  Construction of gas processing facility by “ALROSA-Gaz” (JSC): total Capex – RUB 2.7 bn to be invested in 2018-21

Source: Company data and analysis. 1. For investments in new mining capacity and operational efficiency projects. 03. Executing to strengthen 01. Strategic priorities 02. Market fundamentals 04. Q1 2019 results 05. Corporate governance our business 28 Focus on Efficiency Dedicated operating efficiency program launched in 2017 Scaling up initiatives Delivering tangible results Key initiatives Number of Initiatives Nominal Unit Costs 1, k RUB/m3 Real terms2  Optimisation of ore beneficiation and (8%) (5%) (2%) 208 YoY change, % separation processes 8 Other 1.16 1.15 1.12 42 G&A  Restructuring of construction and geological exploration units 2016 2017 2018 LT Target Operating (Real) 53 improvements General and administrative expenses, RUB bn  Implementation of centralised management and usage-based 187 Real terms3 (10%) (2%) YoY change, % approach for transportation 143 105 Energy efficiency 12.4 11.6 11.7  Labour productivity increase

2016 2017 2018  G&A optimisation 2017 2018 2019E As % of 4% 4% 4% revenue

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. 03. Executing to strengthen 01. Strategic priorities 02. Market fundamentals 04. Q1 2019 results 05. Corporate governance our business 29 Case Study: Operational Turnaround Program at Nyurba Nyurba’s success can be replicated and scaled up across other divisions Key streams and initiatives Run of mine Diamond production growth m m3 m ct  Improving mine fleet dispatching +10% 1 19 processes by SIC procedures 17 +26% implementation 9,7 9,1  Optimizing OEE2 by reducing non-value added operations Overall equipment efficiency 7,7 %  Optimizing maintenance and repairs +12 p.p. 63% operations will lead to improved 51% equipment availability and

 … improved plant availability Processing  Increasing hourly throughput by mt +14% 2018 2019E 2020E optimizing ore blending processes 2.1 2.4

Source: Company data and analysis. 1. Short interval control. 2018 2019E 2. OEE – overall equipment efficiency. 03. Executing to strengthen 01. Strategic priorities 02. Market fundamentals 04. Q1 2019 results 05. Corporate governance our business 30 Case study: Automotive Transport Optimization Centralization and usage-based approach provide long-term cost cutting effect Key streams and initiatives Number of vehicles Cumulative effect in cost cutting

Units (36%) RUB mn, expenses related to transportation

 Number of vehicles went down 1 240 791 following implementation of new Cost saving: RUB 643mn processes and tools: usage-based approach to vehicles request and Vehicles utilization factor (16%) % +55% utilization, route optimization and 3 923 59 reduction of fleet renewal 38 3 280 program Headcount  Revision of organizational FTE (19%) structure and headcount 1 715 1 389 optimization 2018 2019E  Shift to natural gas from gasoline Fuel and diesel leads to decreased fuel m tn (32%) Gasoline 9,469 cost decline and reduced 1,376 6,453 Diesel 8,093 684 emissions 5,769 2018 2019E Source: Company data and analysis. 03. Executing to strengthen 01. Strategic priorities 02. Market fundamentals 04. Q1 2019 results 05. Corporate governance our business 31 Case Study: Working Capital Management Reduction in rough diamond WIP inventory days

Optimization levers Reduction of diamonds WIP1 cycle Production Chain of Rough Diamonds 7 Final sorting Downtime reduction Final Preliminary Mine and box Inventory 14 Recovery sorting 34 Workflow optimisation assembly initiatives 6 New analytics and modelling

WIP Cycle 7 Process automation

Decrease in average … leading to lower rough diamond … and by Value2 Key enablers WIP Cycle WIP inventory by Volume Number of days m ct $ mn  Team and capability development 2017 78 8,8 902  Productivity monitoring and benchmarking  New productivity based motivation system 2018 64 7,1 804  IT systems upgrade (14) (1.7) (98)

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. 03. Executing to strengthen 01. Strategic priorities 02. Market fundamentals 04. Q1 2019 results 05. Corporate governance our business 32 Employee Training and Development System … to further improve long term competitiveness and productivity Key initiatives and programmes Labour productivity growth k m3 of run-of-mine ore per employee  Revision and simplification of remuneration system Improvement to increase transparency and link it to performance of remuneration system  Launch of share-based incentive program to retain +12% top management and align their interests with shareholders +17% 2.4  Implementation of a multi-stage competency 2.1 assessment system for the selection and Development 1.8 of talent pool professional development of the talent pool members

 Development of in-house corporate educational Establishment system covering various grades and business of Corporate divisions University  Implementation of internal coaching and mentoring programmes 2014 2018 Target 2024E

Source: Company data and analysis. 03. Executing to strengthen 01. Strategic priorities 02. Market fundamentals 04. Q1 2019 results 05. Corporate governance our business 33 Marketing Strategic Initiatives and Ongoing Digitalization

Industry initiative Ongoing digitalization in ALROSA

• Participation in DPA to promote the integrity Generic and reputation of natural diamonds (category) Virtual Digital • Differentiation of natural diamonds and Adoption of Drill-and-blast marketing Reality Mine Automation LGDs markets driven by rarity, uniqueness best practices and inherent value of natural diamonds in operational digitalization Company initiatives Big Data Driven Unmanned Predictive Maintenance Technologies Active promotion of fluorescent diamonds to Promotion of • stimulate demand in B2C segment different assortment • Marketing initiatives to improve broader categories • Participation in pilot projects involving M2M sentiment towards fluorescent diamonds and Tracr tracing platforms

Introduction • Implementation of digital twin technology of digital providing detailed information about each • Promotion of large, exceptional quality Marketing of marketing stone diamonds diamond • Development of digital platform for online collections Promotion of fancy coloured diamonds • sales

Source: Company data. 03. Executing to strengthen 01. Strategic priorities 02. Market fundamentals 04. Q1 2019 results 05. Corporate governance our business 34 Diamond Producers Association

Key initiatives DPA marketing campaigns by regions  Diamond Producers Association (DPA) formed by 7 major diamond % represents share of a region in global jewelry consumption producers in 2015 supports the development of the diamond sector through promotion of reputation of diamonds 6% 20% N. America (USA from 2016)  Marketing campaigns with a tagline “Real is Rare. Real is a Diamond” launched in the US (2016) and in India (2017) 53% India (from 2017) Asia Pacific ex. Japan (China from 2018)  DPA’s activities include: 21%  paid advertisement on TV, internet, cinema, social networks RoW  promotion in social media by social influencers  participation in industry events Marketing budget of the industry association growth  work with industry and non-industry organizations  market surveys and research $ m 70  In 2018 DPA’s activities expanded into China (while continued in the US 60 60 and India)

 New marketing campaign addressed to women who purchase diamonds for themselves is called “From Me, To Me”, launched in mid- 10 September 2018 2016 2017 2018 2019E

Source: Company data. 03. Executing to strengthen 01. Strategic priorities 02. Market fundamentals 04. Q1 2019 results 05. Corporate governance our business 35

Capital Allocation – Key Principles and Policy Overview

Focus on Core Prudent Capital Conservative Business Allocation Financial Policy

Organic Growth Investment Program Commitment to with 20%+ IRR1 Balanced Debt Profile Operating Efficiency

Divestiture of FCF-linked Strong Liquidity Position Non-core Assets Dividend Policy

Maximising Shareholder Returns

1. For investments in new mining capacity and operational efficiency projects. 03. Executing to strengthen 01. Strategic priorities 02. Market fundamentals 04. Q1 2019 results 05. Corporate governance our business 36 Strong Balance Sheet … with leverage at historic-lows Investment grade credit rating Net Debt evolution to investment grade credit ratings $ m 1.9x 1.9x 1.7x

3,951 0.5x 0.7x 0.4x 0.2x 3,119 2,781 1,374 1,494 Baa2 BBB- BBB- 971 522 (Stable) (Stable) (Stable) 2013 2014 2015 2016 2017 2018 Q1'19 Net Debt Net Debt / Adjusted EBITDA (RUB denominated) Conservative long-term financial targets Liquidity position Debt repayment schedule $ m 3,671 $ m • Maintain conservative debt profile in line with investment grade Eurobonds Bank Loans criteria Cash and cash equivalents 1,048 • Target Net Debt / EBITDA range: 0.5-1.0х (incl. deposits) • Liquidity reserves of >RUB 35 bn (committed credit lines and cash) Uncommitted 896 Credit Lines 2,623 647 • Natural FX hedge – financial liabilities are matched with income streams 10 11 6 • Solid public debt track record with fixed-income investors 31-Mar-2019 2019E 2020E 2021E 2022E 2023E

Source: Company data and analysis. 03. Executing to strengthen 01. Strategic priorities 02. Market fundamentals 04. Q1 2019 results 05. Corporate governance our business 37

Dividend Policy Focused on Maximisation of Shareholder Returns

Historical dividend payments 1 Dividend policy overview $ mn $ per share Dividend FCF 0.17 Base 1 400 0,18

0.15 0,16 1 200 0,14 Frequency Semi-annual 1 000 H1’18 0,12

800 0,10 Net debt / 0.0x < Net Debt / 1.0x < Net Debt / 1,281 0,08 Conditions 600 EBITDA < 0.0x EBITDA < 1.0x EBITDA < 1.5x 1,110 0,06 400 0.04 0.03 0.03 12M’170,04 200 0,02 100+% 70–100% 50–70% 311 244 190 Payout Ratio 0 0,00 Subject to minimum dividend payout of 50% of IFRS net income 2014 2015 2016 2017 2018

Source: Company data and analysis. 1. Based on FX rate as of the dividend record date. Dividends paid , based on FY2018 IFES numbers 04

Q1 2019 RESULTS 03. Executing to strengthen 01. Strategic priorities 02. Market fundamentals 04. Q1 2019 results 05. Corporate governance our business 39 Sales Increase in diamond sales

Highlights Diamond sales in carats m ct Q1 2019 Sales Industrial quality diamonds Gem-quality diamonds 41.2 38.1  Diamond sales increased by 1.6 m carats (18% q- 13.4 11.1 10.6 11.7 o-q) to 10.6 m carats due to increased small-size 3.2 9.0 9.0 diamond sales driven by seasonal restocking by 6.7 2.7 dealers and retailers 2.7 3.7 10.1 2.0 30.1 26.4 7.9  Sales were up 20% q-o-q to USD 988 m (down 6.3 4.7 5.3 37% y-o-y) due to a larger share in small-size diamonds Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 12M'17 12M'18 Diamond sales in U.S. dollars 12M 2018 Sales $ m Industrial quality diamonds Gem-quality diamonds  Diamond sales were 38.1 m carats (down 8% y-o- 1,582 4,170 4,412 87 y), while 26 85 1,057  … diamond sales in value terms rose by 6% to 949 988 824 USD 4.4 bn on the back of stronger prices and 23 16 18 22 4,325 improved mix of gem-quality diamonds 1,556 4,085 1,034 933 802 969

Q1'18 Q2'18 Q3'18 Q4'18 Q1'18 12M'17 12M'18

Source: Company data and analysis. 03. Executing to strengthen 01. Strategic priorities 02. Market fundamentals 04. Q1 2019 results 05. Corporate governance our business 40 Output Q1 2019: increase in diamond production

Highlights Ore and sands processing Q1 2019 m t Grade, cpt 1.01 0.91  Production was down 24% q-o-q to 7.8 m ct 1.30 0.84 0.61 1.38 1.23 mostly due to a decrease in output at the International and Aikhal UG mines and the Jubilee 39.1 40.5 pipe 17.2 10.1  Av. grade went down by 11% q-o-q to 1.23 cpt 5.7 7.5 7.8

12M 2018 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 12М'17 12М'18  The volume of processed ore and gravels grew by Diamond production 3% to 40.5 m t mainly due to increased gravel m ct Open pit Underground Alluvials 39.6 processing at Almazy Anabara alluvial deposits (up 36.7 8%) and Mirny Division (up 10%) 10.5 10.3 8.0 8.5 0.5 8.7 7.4 7.8  Production declined by 7% to 36.7 m ct due to the 3.3 10.6 0.2 2.3 5.8 0.2 8.4 shutdown of the Mir UG mine and the completion 2.0 1.5 2.1 of open-pit mining at the 1.0 21.1 5.3 6.5 6.1 19.7  Av. diamond grade was 0.91 cpt 4.1 3.8

Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 12М'17 12М'18

Source: Company data and analysis. 03. Executing to strengthen 01. Strategic priorities 02. Market fundamentals 04. Q1 2019 results 05. Corporate governance our business 41 Key Financials Resilient financial performance with strong margins and positive free cash flow

Highlights Superior profitability

Q1 2019: $ bn Revenue EBITDA EBITDA margin 52% 46% 57% 57%  Revenue came in at $1.1 bn (up 17% qoq) due to 50% increase of diamond sales in carats. 36% yoy 44% 44% decrease was driven by reduction of diamond sales 2.5 2.2 in carats and a weaker sales mix 0.8 4.7 4.8 0.7 0.6 1.7 0.4 0.5  EBITDA was up 18% qoq to $0.5 bn on increased 1.2 1.1 0.9 1.1 diamond sales and cost control. 43% yoy decrease was driven by revenue decline Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 2017 2018  EBITDA margin stood at 44% (down 6 p.p. yoy) Strong Free Cash Flow generation $ m  Net income stood at $0.4 bn (up 3.0x qoq, down 1,514 37% yoy) 718 1,260  FCF increased by 84% qoq to $0.4 bn (down 53% 395 yoy) 342 242  Net debt / EBITDA stood at 0.2x 215

Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 2017 2018

Source: Company data and analysis. 03. Executing to strengthen 01. Strategic priorities 02. Market fundamentals 04. Q1 2019 results 05. Corporate governance our business 42 Price Dynamics

Highlights Price index for gem-quality diamonds 2  In Q1 ‘19 average price index decreased by 3.1% Average index change Average price index mainly due to oversupply in the diamond market, 1.00 1.03 1.00 1.02 1.04 1.02 0.99 0.97 0.90 0.93 0.95 weaker Indian rupee and limited access to affordable financing for mid-stream in India 3% 3% 3% 2% 2%  Q1 ’19 average selling prices of gem-quality diamonds decreased by 19% qoq (down 20% yoy) (2%) (3%) to $123/ct due to a larger share of small-size (5%) (8%) diamonds and lower prices mostly for medium-size 2013 2014 2015 2016 2017 2018 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 diamonds Average selling price1 for gem-quality diamonds  In 2018 average price index gained 2.9% (following $/ct Price change a 3.4% gain in 2017) 199 175 172 170 149 164 154 164 153  Due to better sales mix, 12M ’18 average selling 136 123 prices1 grew by 21% and reached $164/ct 21% 22% 6%

(2%) (1%) (12%) (9%) (23%) (19%) 2013 2014 2015 2016 2017 2018 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 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) 03. Executing to strengthen 01. Strategic priorities 02. Market fundamentals 04. Q1 2019 results 05. Corporate governance our business 43 Sales Update

Highlights Q1 2019 gem-quality rough diamond revenue bridge  Q1‘19 gem-quality diamond sales were up by 20% RUB bn qoq to RUB 64 bn driven by:  (+) 18% increase in sales volumes (in carats) 26 (13) (2) (0.5)  (-) weaker product mix 53 64  (-) softer LFL prices (av. index change – -3%)  (-) FX rate impact on stronger RUB Q4'18 Volume Sales Pricing FX Q1'19 Revenue mix like-for-like Revenue  2018 revenue grew by 8% driven by stronger gem- quality diamond sales 2017-2018 gem-quality rough diamond revenue bridge RUB bn 4 14 40 267 238 (30)

2017 Volume Sales Pricing FX 2018 Revenue mix like-for-like Revenue

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. 03. Executing to strengthen 01. Strategic priorities 02. Market fundamentals 04. Q1 2019 results 05. Corporate governance our business 44 Profitability Analysis

Highlights Q1 2019 EBITDA – key drivers (qoq)  Q1‘19 EBITDA was up by 16% qoq driven by: RUB bn  (+) 18% increase in cts sales: impact RUB 26 bn (13) 26  (-) sales mix: impact RUB 13 bn (2) (0.4)  (-) like-for-like prices: impact RUB 2 bn (6) 27 31  (-) FX rate impact RUB 0.4 bn Q4'18 Sales Sales Pricing FX Other Q1'19  (-) other factors: total impact RUB 6 bn EBITDA volume mix like-for-like EBITDA

 Q1 ‘19 EBITDA was down by 34% yoy driven by: Q1 2019 EBITDA – key drivers (yoy)  (-) 21% reduction in cts sales: impact RUB 21 bn RUB bn  (-) sales mix: impact RUB 10 bn  (-) like-for-like prices: impact RUB 4 bn (21) 10 48  (+) FX rate impact RUB 8 bn 8 (10) (4) 31  (+) other factors: total impact RUB 10 bn Q1'18 Sales Sales Pricing FX Other Q1'19 EBITDA volume mix like-for-like EBITDA

Source: Company data and analysis. 03. Executing to strengthen 01. Strategic priorities 02. Market fundamentals 04. Q1 2019 results 05. Corporate governance our business 45 Free Cash Flow and Total Debt Analysis

Q1 2019 EBITDA to Free Cash Flow bridge Q1 2019 Total debt bridge RUB bn RUB bn ND / EBITDA

EBITDA 31.4 Total Debt 0.4x 4Q'18 67.5 39.2 106.7 Changes 3.6 in NWC FCF (25.9)

Income tax (5.1) Liquidity changes 28.6 Other (0.2) Sale Operating of assets (1.6) cash flow 29.7 1 Other (6.2) Capex (3.9)

Total debt 0.2x Free cash flow 25.9 Q1'19 33.8 67.8 101.6

Net debt Cash and cash equivalents (incl. deposits)

Source: Company data and analysis. 1. Mainly includes changes in FX, finance income/expense, income from grands, insurance reimbursement etc. 03. Executing to strengthen 01. Strategic priorities 02. Market fundamentals 04. Q1 2019 results 05. Corporate governance our business 46 Outlook

Market outlook ALROSA operating performance  Underlying demand for diamond jewellery demonstrates  Production outlook for 2019 remains unchanged at 38 m ct positive dynamics while escalation of trade tensions could (+1.3 m ct yoy) on continued ramp-up of Verkhne- weigh negatively on the growth rates Munskoye and Severalmaz

 Overall diamond stocks are expected to remain flat at mid-  Grades are expected to stabilize at 0.9 ct/t stream, as Indian mid-streamers continue to face difficulties with access to affordable financing  Production mix and sales mix are expected to normalize following sale of higher grade stocks in the first half of 2018  Global diamonds supply continues to decrease 05

CORPORATE GOVERNANCE 03. Executing to strengthen 01. Strategic priorities 02. Market fundamentals 04. Q1 2019 results 05. Corporate governance our business 48 Corporate Governance and Shareholder Support Commitment to improving standards of corporate governance Increased share of INEDs in the Board of Directors • Regular and transparent disclosure and commitment to best in class corporate governance practices Number of Members Independent Nominees of RF and Yakutia • New initiatives are under way:

‒ Corporate Strategy till 2024 2014 2 13 ‒ HR Strategy with the overhaul of the organization structure and motivation schemes (stock option program is one of the initiatives) Now 4 11 ‒ 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 6 – Russian Federation 4 – Republic of Yakutia ‒ Approval of new HSE policy, aimed to promote a culture of safety 1 – Local Communities of Yakutia

INEDs represent 100% in Audit and 75% in RemCo committees

Number of Members Chaired by INEDs Strategy with RemCo 1 3 INEDs Committee – out of 13 3 INEDs out of 4

Source: Company data. Audit – 3 INEDs out of 3 03. Executing to strengthen 01. Strategic priorities 02. Market fundamentals 04. Q1 2019 results 05. Corporate governance our business 49 Current Board has Supported Initiatives to Improve Alignment of Shareholder Interests

New management team Transparency and disclosure New senior management team with tenured Commitment to regular and transparent disclosure professionals committed to increase shareholders of operational and financial results and publishing return and modernise ALROSA’s corporate of social and environmental report. structure and operations. HSE strategy New clear financial and dividend policy Approval of new HSE policy, aimed to promote a Financial policy to ensure an appropriate balance culture of safety. between capital structure and liquidity at hand. New clearly articulated semi-annual dividend policy based on FCF and target leverage. 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 03. Executing to strengthen 01. Strategic priorities 02. Market fundamentals 04. Q1 2019 results 05. Corporate governance our business 50 Board Agenda for 2019-2020

Focus on continuous business transformation to ensure long-term 1 competitiveness and sustainable production

2 Emphasis on developing risk management culture within the company

3 Highlight long-term strategic issues in marketing

4 Reform of HR and pay structure

5 Active engagement with all stakeholders 06

APPENDIX 52 Key Investment Projects

1 Udachny 2 VM1 3 Zaria 4 Maiskaya 5 VG2 UG mine deposit pipe pipe deposit Type of mining Underground Open-pit Open-pit Open-pit Alluvials

Production start 2014 2018 2020 2025 2022 2 Ramp-up 2021 2020 2021 2027 2022 1 Udachny 3 Target ore output pa, m t 4.0 3.0 1.2 0.3 1.1 Aikhal Yakutia 4 5 Nyurba Target production pa, m ct 5.6 1.8 0.4 1.2 0.4 Mirny Yakutsk Total CAPEX, RUB bn 63.9 25.0 8.4 5.6 2.3

Invested share 85% 69% 77% 1% 0%

Resource base3, m 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 53 Projects Under Consideration Decision on the mines construction will be taken after the feasibility studies will be completed, all numbers are indicative and based on preliminary estimate

1 Jubilee UG mine 2 Mir UG mine

Type of mining Underground Underground

Ramp-up (preliminarily) 2032 2031-32

Target ore output pa, m t 1.8 1.3 1 Target production pa, m ct 2.3 3.8 Aikhal Yakutia Total CAPEX, RUB bn ~72 ~73 2 Mirny Invested, % 0% 0% Yakutsk

Reserve base1, m ct ~43.2 ~68.6

Project IRR Up to 20% 18.3%

Source: Company data 1. Subject to further exploration 54 Sales Structure and Channels Multichannel distribution with growing focus on long-term contracts ALROSA’s rough diamond sales channel breakdown

88% 98% / 70% 10% 19% 17% 10-20% of ALROSA’s diamond sales of ALROSA’s diamond sales / volume 12% 10-20% accounted for exports1 generated by sales of 17% Tenders gem-quality rough 72% Spot sales Overview of sales channels 71% ~70% 64% Long-term contracts

1. Long-term agreements which provide stable sales and predictable prices 18% during volatility on diamond market (strategy generates ~70% of ALROSA's rough diamond sales) 2006-2008 2012-2014 2015-2016 Long-term

2. Largest jewellery chain stores: ALROSA’s geography of sales1 based on clients legal residences

number of long-term clients as of January 2019 4% 2% 24 Belgium

3. Competitive sales via auction and tenders 18 India 10% 4. Spot sales pursuant to one-off contract arrangers 4 Israel 12% 47% 9 Russia 5. Sales through Russian government entities – Almaziuvelirexport and 10% 1 UAE Gokhran of Russia 15% 7 China

4 Other Source: Company data and analysis 55 Expansion to Africa Promising region with high exploration potential Improved financial performance at Catoca Development of Luele pipe Production and sales, m ct EBITDA, $ mn  Luale pipe is the largest diamond discovery over the past 60 years Production Sales $84/ct $89/ct $110/ct 7.3 7.0 7.5 7.5 7.3  The project is operated by Luaxe consortium 6.7 350+ 300 255  The pipe development plan to be approved by the end of 2019

 Resource base: 350 m ct Axis Title Axis  Expected average grade: 0.95 ct/t 2016 2017 2018E 2016 2017 2018E  Catoca in numbers: Exploration activities ‒ Total reserves ~ 120 m ct // 2 processing plants with 13 m t pa // 0.61 ct/t  Kimang JV (Angola):  Recent corporate governance improvements: ‒ 50/50% JV between ALROSA and Endiama ‒ Supervisory & Fiscal committees authorized to review and approve contracts Exploration activities in Quango area, the North of Central Angola ‒ Appointment of executive directors to be approved by Supervisory committee ‒ ‒ Awaiting exploration license approval for Chisombo area ‒ Rotation between ALROSA and Endiama in appointing CEO and CFO  Zimbabwe:  Change in sales practices: ‒ Strategic partnership with the government of Zimbabwe ‒ New approach to sale channels diversification following reform in Angola’s ‒ Selection of potential targets for exploration study diamond industry has already resulted in double-digit growth of diamond prices

Source: Company data and analysis. 56 Focus on Core Business with “Back to Basics” Approach Number of ALROSA’s subsidiaries

 Program to divest non-core assets started in 2013 includes assets 47 in real estate, energy (gas) farming, insurance, etc. 39 34 32 31  The program is planned to be completed by 2020 29 27  Number of non-core entities was down by 40% from 2013

Q1 2019 proceeds from divestments were RUB 3.2 bn:

 disposal of non-core assets for RUB 1.6 bn (the most significant 1 transaction – sale of 100% stake in JSC Golubaya Volna Resort 2013 2014 2015 2016 2017 2018 Q1'19 for RUB 1.2 bn Proceeds from sale of non-core assets  disposal of property by LLC Innovation Centre Bourevestnik for RUB 1.6 bn RUB m 30,300 Total proceeds from divestments were RUB 37 bn in 2013-2018: 5,341 652  80% of total proceeds came from the sale of gas assets in Q1 2018 to 463 3,200  Another significant divestment was sale by ALROSA of 51% 271 stake in Timir, iron ore producer, to EVRAZ in 2013 for total consideration of RUB 4.95 bn 17

2013 2014 2015 2016 2017 2018 Q1'19 Source: Company data 1. Excluding ALROSA Finance BV, ALROSA Finance SA, Wargan Holdings Limited (finance entities) and ALROSA Overseas SA (holding company) 57 Creating a clearer and sustainable environment

1 Latest developments Reduction of CO2 emissions ths tonnes

 Over the past two years, ALROSA has reduced CO2 emissions by c.20% 1 067 1 064 858  Already impressive share of clean electricity and heat consumption of 86%

 Efficient disclosure is acknowledged by ESG ratings: 2016 2017 2018 ‒ 3rd place (out of 33) in the “First rating of environmental Share of clean (incl. renewable) electricity and heat consumption performance of mining companies in Russia” 2018 ‒ Rated among top-10 Russian companies with 14% transparent corporate reporting according to Transparency International-Russia research

86%

Share of clean electricity and heat consumption Other 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. 58

Profit Curve of Existing Diamond Mines Margin per carat by mines

Tier-1 performing mines (1st quartile, 0-25%) Tier-2 performing mines (2nd quartile, 25-50%) (Price per ct - Cash Cost per ct), $ (Price per ct - Cash Cost per ct), $

Tier-3 performing mines (3rd quartile, 50-75%) Tier-4 performing mines (4th quartile, 75-100%) (Price per ct - Cash Cost per ct), $ (Price per ct - Cash Cost per ct), $

Source: Company data and analysis. Note: Assessment of 2017 production. 59 FX Rate

Financial metrics breakdown by currency  ALROSA is an exporter with 95% of revenue denominated in USD % of metric's total  Major portion (74%) of costs and capex is denominated in RUB 95% of the Company’s debt portfolio is denominated in USD to RUB create a natural hedge against FX risks USD

 ALROSA's financial sensitivity analysis shows that a change in the 5% 5% USD exchange rate by +/- 1 RUB/USD leads to the following 41% change in metrics: 74% 85% ‒ revenue – +/-1.42% 95% 95%

‒ cost of sales – +/-0.23% 59% ‒ EBITDA – +/-2.91% 26% 15%

‒ capex – +/-0.39% Revenue Cost of sales Capex Cash and cash Total equivalents debt (incl. bank deposits)

Source: Company data and analysis. 60 Management Team Committed to deliver on ALROSA’s development plans Executive team Operational team

Sergey Ivanov Alexey Kovalenko Chief Executive Officer Director, Mirny mining and processing division

• Joined the Company in 1996 O • Joined the Company in 2017 Mirny Over 20 years of industry experience

Division •

CE • Senior Vice President at (2016‒2017) • Chairman of the Management Board of SOGAZ (2011‒2016) • Top management positions at Gazprombank (2005‒2011) Roman Deniskin Director, Udachny mining and processing division

• Joined the Company in 2019 Division

Udachny • Over 15 years of industry experience Igor Sobolev First Deputy CEO – Chief Operating Officer Evgeniy Denisov • Joined the Company in 2007 Director, Aikhal mining and processing division COO • Head of Capital construction division, mining & metallurgical • Joined the Company in 2005 Aikhal Over 15 years of industry experience directorate at (2000‒2007) Division •

Anatoliy Platonov Alexey Philippovskiy Director, Nyurba mining and processing division

Deputy CEO – Chief Financial Officer • Joined the Company in 1992 Nyurba • Joined the Company in 2017 Division • Over 25 years of industry experience

CFO • CFO of Siberian Generating Company (2015–2017) • Head of Finance and Economics and then CFO of Sibur (2004–2013) Pavel Marinychev • Consultant at McKinsey & Co. (2001–2004) CEO Almazy Anabara • Joined the Company in 2016

Almazy Almazy • First deputy Prime Minister of the Republic of Sakha (Yakutia) (2014‒2016) Anabara • Deputy Prime Minister of the Republic of Sakha (Yakutia) (2010‒2014) Yuri Okoyomov Deputy CEO for Sales

Andrey Pismenny es l Joined the Company in 1993 CEO Severalmaz

a • S • Vice President of ALROSA for marketing and sales since • Joined the Company in 1997 August 2009 • Over 20 years of industry experience

Severalmaz • Chief engineer of ALROSA in 2010‒2015

Source: Company data. 61 Supervisory Board Overview

1 2 Aysen Nikolaev 3 Nikolay Alexandrov 4 Vladimir Solodov

First Deputy Chairman of the Government Head of the Republic of Sakha (Yakutia) First Deputy Head of Suntarsky Ulus Chairman of the Government of the of the Russian Federation Municipal District of the Republic of Sakha Republic of Sakha (Yakutia) (Yakutia)

Nominated by: the Russian Federation Nominated by: the Republic of Sakha (Yakutia) Nominated by: Municipal Districts of the Republic of Sakha Nominated by: the Republic of Sakha (Yakutia) (Yakutia)

Previously held positions include: Previously held positions include: Previously held positions include: Previously held positions include: • 2005-2011 – Deputy Minister of Finance of the Russian • 2012-2018 – Head of the urban district ”City of • 2009-2015 – Specialist, Senior Specialist, Leading • 2013-2015 – Head of department in Agency of Federation Yakutsk” Specialist, Head of water transport Department of Strategic Initiatives • Since 2011 – Minister of Finance of the Russian • Since 2018 – Head of the Republic of Sakha (Yakutia) Ministry of Transport and Road Infrastructure of the • 2015-2018 – Deputy Plenipotentiary Representative of Federation Republic of Sakha (Yakutia) the President of the Russian Federation in the Far • Since 2018 – First Deputy Chairman of the Government • 2015-2016 – General Director of the state-run Eastern Federal District of the Russian Federation enterprise of the Republic of Sakha (Yakutia) “Arctic • Since 2018 – Chairman of the Government of the Transportation Company” Republic of Sakha (Yakutia) • Since 2017 – First Deputy Head of Suntarsky Ulus Municipal District of the Republic of Sakha (Yakutia)

5 6 7 8 Alexey Chekunkov Kirill Dmitriev Oleg Fedorov Maria Gordon

CEO of Far East and Baikal Region CEO of Russian Direct Investment Fund Independent director of the Supervisory Independent director of the Supervisory Development Fund Board, ALROSA Board, ALROSA

Nominated by: the Russian Federation Nominated by: the Russian Federation Nominated by: minority shareholders as an independent Nominated by: minority shareholders as an independent director director

Previously held positions include: Previously held positions include: Previously held positions include: Previously held positions include: • 2009-2011 – Head of New Nations Capital Investment • 2007-2011 – Development Director, President of Icon • 2009-2012 – Head, Department of Investment and • 1998-2010 – Goldman Sachs, investment activity Company Private Equity Limited Representative Office Banking, VTB Capital • 2010-2014 – PIMCO, investment activity • 2011-2013 – Director, member of the board, member • Since 2011 – CEO of Russian Direct Investment Fund • 2012-2014 – Adviser to the Head of the Federal • Since 2015 – Independent director of the Supervisory of investment committee of the Russian Direct Agency for State Property Management Board of ALROSA Investment Fund • Since 2013 – Independent director of the Supervisory • Since 2014 – General Director of the Far East Board of ALROSA Development Fund Source: Company data. 62 Supervisory Board Overview

9 Evgenia Grigorieva 10 Sergey Ivanov 11 Dmitry Konov 12 Galina Makarova

Minister of Property and Land Relations of Chief Executive Officer of ALROSA Member of the Board of Directors, Independent director of the Supervisory the Republic of Sakha (Yakutia) Chairman of the Management Board Board, ALROSA at SIBUR Holding

Nominated by: the Republic of Sakha (Yakutia) Nominated by: the Russian Federation Nominated by: the Russian Federation as an independent Nominated by: the Republic of Sakha (Yakutia) as an director independent director

Previously held positions include: Previously held positions include: Previously held positions include: Previously held positions include: • 2007-2011 – First Deputy Minister of Property • 2011-2016 – Chairman of the Management Board of • 2011-2016 – CEO of SIBUR • 2003-2007 – Ministry of Property Relations of the Relations of the Republic of Sakha (Yakutia) AO SOGAZ • Since 2007 – Member of the Board of Directors, Chairman Republic of Sakha (Yakutia) • Since 2011 – Minister of Property and Land Relations • 2016-2017 – Senior Vice President, Head of Wealth of the Management Board (since 2009) at SIBUR Holding • 2007-2015 – Permanent Representative of the of the Republic of Sakha (Yakutia) Management at Sberbank of Russia Republic of Sakha (Yakutia) in St. Petersburg • Since 2017 – CEO of ALROSA • Since 2018 – Independent director of the Supervisory Board of ALROSA

13 14 15 Sergey Mestnikov Alexey Moiseev Ilya Yelizarov

CEO of Trust Fund for Future Generations Deputy Minister of Finance of the Russian Assistant Head of the Federal Agency for of the Republic of Sakha (Yakutia) Federation 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: Previously held positions include: Previously held positions include: • 2010-2012 – Deputy Head, Head, Secretariat of Chairman • 2001-2010 – Senior Economist, Deputy Head of • 2010-2012 – Referent of the Department of the of the Government of the Republic of Sakha (Yakutia) Analytical Department of Renaissance Capital - Presidential Experts' Directorate, Assistant Head of • 2012-2016 – First Deputy Minister of Property and Land Financial Consultant Presidential Administration Relations of the Republic of Sakha (Yakutia) • 2010-2012 – Deputy Head of Department, Head of • 2012-2015 – Assistant Chairman of the Government of • Since 2016 – CEO of Trust Fund for Future Generations of Division at VTB Capital the Russian Federation the Republic of Sakha (Yakutia) • Since 2012 – Deputy Minister of Finance of the Russian • Since 2017 – Assistant Head of the Federal Agency for Federation State Property Management (Rosimushchestvo)

Source: Company data. 63

Glossary Term Definition

ct Carat : one of the four main diamond characteristics, the others being colour, cut and clarity; 1 carat=200 mg

m ct Million carats

CVD Chemical vapour deposition: a high-temperature, but normal-pressure process to grow lab-grown diamonds

DPA Diamonds Producers Association

FTC Federal Trade Commission

Gem-quality diamonds Diamonds used for jewellery manufacturing

HPHT High-pressure, high-temperature; a process using large presses to grow lab-grown diamonds

INED Independent Director

Lab-grown diamonds (LGD) Diamonds produced in laboratories using HPHT or CVD methods; also known as synthetic diamonds

m3 Cubic meter

Average price index Average index change of like-for-like diamonds prices (excl. +10.8 carats)

Reserves Resources known to be economically feasible for extraction

Resources Valuable deposits that could potentially be economically extracted at a later point

RoW Rest of the world

tn Tonnes

mmt Million tonnes

p.p. Percentage points THANK YOU!

HEAD OF CORPORATE FINANCE , RUSSIA 115184 M: +7 985 760 55 74 SERGEY TAKHIEV 24 OZERKOVSKAYA EMB. E: [email protected]