ALROSA Investor Presentation 29 November 2019 Disclaimer For - PowerPoint PPT Presentation

ALROSA Investor Presentation 29 November 2019

Disclaimer For notes es: The below applies to the presentation (the “Presentation”) following this important notice, and you are therefore advised to read this important notice carefully before reading, accessing or making any other use of this Presentation. This Presentation contains statements about future events and expectations that are forward-looking statements. Any statement herein (including, without limitation, a statement regarding our financial position, strategy, management plans and future objectives) that is not a statement of historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause ALROSA’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Past performance should not be taken as an indication or guarantee of future results, and no representation or warranty, express or implied, is made regarding future performance. The information and opinions contained in this document are provided as at the date hereof (unless indicated otherwise) and are subject to change without notice. ALROSA assumes no obligation to update, supplement or revise the forward- looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements. This Presentation does not constitute or form part of and should not be construed as, an offer to sell or issue or the solicitation of an offer to buy or acquire any securities in any jurisdiction or an inducement to enter into any investment activity. The contents hereof should not be construed as investment, legal, tax, accounting or other advice, and investors and prospective investors in securities of any issuer mentioned herein are required to make their own independent investigation and appraisal of the business and financial condition of such issuer and the nature of the securities and consult their own advisers as to legal, financial, tax and other related matters. This Presentation has not been independently verified. No representation or warranty or undertaking, express or implied, is made as to the accuracy, completeness or fairness of the information or opinions contained in this Presentation. None of ALROSA nor any of its shareholders, directors, officers or employees, affiliates, advisors, representatives nor any other person accepts any liability whatsoever for any loss howsoever arising from any use of this Presentation or its contents or otherwise arising in connection therewith. No reliance may be placed for any purpose whatsoever on the information contained in this Presentation or on its completeness, accuracy or fairness. This Presentation is not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction. Persons in whose possession this Presentation and/or such information may come are required to inform themselves thereof and to observe such restrictions. Some figures included in this Presentation have been subject to rounding adjustments. By reviewing and/or attending this Presentation you acknowledge and agree to be bound by the foregoing.

Table of Content 01. About ALROSA – strategic priorities p.4 02. Market fundamentals p.11 03. Executing to strengthen our business p.28 04. Q3 2019 results p.44 05. Corporate governance p.52 06. Appendix

01 ABOUT ALROSA – STRATEGIC PRIORITIES

03. Executing to strengthen 5 01. Strategic priorities 02. Market fundamentals 04. Q3 2019 results 05. Corporate governance our business 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 Republi lic of Sakha 10% 10% (Yakutia ia) level Arkhangelsk elsk 90% 90% Regio ion Russia ian Federa erati tion ALROSA sustain inab ably ly tops the ranks s as one of the most profit itab able le miners EBITDA margin, % 2014 2015 2016 2017 2018 53% 42% 1,064 m ct Total Open en-pi pit mining ALROS OSA A owns 41% % of l resource urces, 39% 53 % from om 8 mines es in 2018 Catoc oca Ltd d (Angol gola) a) including reserves 21% 628 m ct Total Angola l reserve rves Under ergrou ound nd mining ng 23 % from om 3 mines es in 2018 Alluvial al mining ng from om 24% alluvial deposi posits in 2018 ALROSA AL 1 Peer r 1 Peer r 2 Peer r 3 Sources: Source: Companies data, AWDC Bain report “The Global Diamond Industry 2018”.

03. Executing to strengthen 6 01. Strategic priorities 02. Market fundamentals 04. Q3 2019 results 05. Corporate governance our business Focus on Responsible Mining • Improving industrial safety with focus on prevent ventio ion • Structural reform promot omotin ing a cultu lture e of safety ety • Diagnostic and treatment services aimed to promo mote te disclo losure e and reduce ce illnes esses es RUB 5.2 bn 1 : RUB 6 bn 1 : Capex on Environmental Activities Support to Local Communities • Reduce ce CO2 2 emissions Health 11% 1% & Safety • Maintain high share – at least 86% - of clean an (incl. Charity expenses 4% renewables) electricity and heat consumption Local infrastructure Healthcare 54% Education 30% 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 7 01. Strategic priorities 02. Market fundamentals 04. Q3 2019 results 05. Corporate governance our business Creating a Clearer and Sustainable Environment Latest st devel elopm opment ents Reducti ction on of C CO 2 emiss ssions ions 1 ths tonnes  CO 2 emissions down by c.20% from 2016  Already impressive share of clean electricity and heat 1,067 67 1,064 64 consumption of 86% 858 858  ESG Ratings:  MSCI ESG: BB (August 2019)  Sustainalytics: 59 (September 2018)  Bloomberg ESG Disclosure: 56.6/100  ISS Quality Score: 3/10 (1 is the best) 2016 2017 2018  ALROSA is a constituent of the FTSE4Good Index Series created Share e of c clean ean (incl. l. renewable) able) elect ctric icit ity and heat consu sumption mption by the global index and data provider FTSE Russell  ALROSA is a certified member of the Responsible Jewellery 2018 Council (RJC) by achieving certification against its Code of Practices. 14%  In 2019, ALROSA received the Diamond Empowerment Fund (DEF) award for implementing social projects in the regions where it operates (Community Stewardship).  ALROSA has the National Corporate Governance Rating at 8 86% “ Advanced Corporate Governance Practices ” 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” s tructure starting from 01.01.2017 and became its subsidiary PTWS LLC.

03. Executing to strengthen 8 01. Strategic priorities 02. Market fundamentals 04. Q3 2019 results 05. Corporate governance our business Employee Safety is Our Top Priority Strong Commitment to Promote a Culture of Safety and Reduce the Number of Accidents One of t the lowest st LTIFR compar pared ed to the diamo mond nd industr stry y and other er sector ors 1 Lost Time Injury Frequency Rate per 200,000 hours Structural ural changes s Procedures 8.7 6.3 HSE committees at all Revised HSE Policy management levels Tailored reporting system New approach to control to ensure prompt detection the flow of production 1.9 and response to incidents 1.6 Regular HSE education HSE supervision at each 0.5 and training sessions 0.2 2 stage of production chain 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 9 01. Strategic priorities 02. Market fundamentals 04. Q3 2019 results 05. Corporate governance our business Superior TSR Compared to Global Peers Cumulat lative ive total al USD TSR since e ALROSA IPO in October ber 2013, 3, % 200% +57.1% Luxury goods producers 150% +41.9% ALROSA 100% Diversified miners, incl. -7.0% other diamond producers 50% 0% 0% Oct-13 Oct- Apr-14 Ap Nov-14 Nov May-15 Dec- De c-15 Jun-16 Jun- Jan Jan-17 Aug-17 Aug Feb-18 Feb Sep Sep-18 Mar-19 Oct-19 Oct- 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.