ALROSA Q2&6M 2020 IFRS RESULTS MOSCOW, 14 AUGUST 2020 - PowerPoint PPT Presentation

ALROSA Q2&6M 2020 IFRS RESULTS MOSCOW, 14 AUGUST 2020

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ALROSA: COVID-19 RESPONSE Team Communities Customers Operations  Preve ventive ntive measur sures: temperature  Support t to the healthcar thcare syste tem: :  Commitm itment t to support clients nts  Cris isis is management ement commit mmittee tee checks 2x a day, provision of PPE, ~RUB0.5 .5 bn bn allocat located to safety  Contracts tracts with flexibility added:  2020 outp tput cut t by 10-18% 18% sanitization, etc. measures and medical o Option to defer 100% of o 2021-22 scenarios are being  Shift approach ch for unique equipment, incl. PPE, testing purchases from April assessed specialists, ensuring physica ical l systems and ventilators o Volumes to be purchased by dista tanci cing  Capex ex revis ised ed downwards  Screening ning: : more then 33K year end cut by ½ from Aug.  WFH mode from March where COVID-19 tests were made in the  Cost t cutt ttin ing measures  Communicati nication with clients on a applicable regions of operations  Active ctive supply ly mana nagem ement ent daily basis (incl. with Head of  Internal nal commun unica icatio tion n program m  Development of telemedicine sales)  Bala lance ce sheet t streng engthening ening and to raise awareness, trainings networks for the remote areas build ildin ing up liquid idit ity posit itio ion  Sales s channe nels ls flexibility (digital,  Testin ting for COVID-19: up to 100% auctions) of the personnel screened at the sites where virus was identified Source: Company data. 3 Note: (1) PPE – Personal Protective Equipment; (2) WFH – Working From Home.

EMPLOYEE SAFETY IS UNDISPUTABLE PRIORITY Prevention ion progra ram in action on • Industr trial ial safety ety is our top-prio iority ity at at all l times mes % by type of accident • 6 M’20 : 31 accidents, incl. 29 insignificant; no fatalities Potential Non-potential • Furthe ther strength engthenin ening of H&S S funct ctio ion 13% Forma malized lized H&S funct ctio ion built in 2017 with systems o and functions being rolled across the Group 65% 66% 67% 87% Head of H&S with extens ensive ive experien erience ce in M&M to o report to COO with a wide authority (up to 35% 33% 34% suspension of operations) 2017 2018 2019 6M'20 • Prevent eventio ion program am promoting transparency and disclosure launched in 2017 “Systemic” changes • … delivering impressiv ive e result lts – drop in fatalities and Number of accidents Insignificant Serious Fatalities “serious” accidents 74 • … while growth in insignificant accidents increased on the 65 31 back of awar arene eness / whis istleb tleblo lowing wing programs ms / motiva tivatio ion 53 schemes mes chan ange 49 69 39 29 3 5 13 3 2 2 9 2017 2018 2019 6M'20 Source: Company data and analysis. 4

MANAGING THROUGH THE DOWNTURN Responsib sibil ility ity over custome mers 2020 output cut down Capex downscale aled Min. allowed contract allocation level m ct RUB bn Initial Revised New -3-6 m ct 80% 80% Starting Apr’20 up to 100% of min 70% allowed wed volu lumes es could be defer erred ed 70% 55% 38.5 29 50% 34.2 26 28-31 22 ~20 20 55% 50% 50% Jan Jan'18 18 Sep Sep'18 18 Jul' Jul'19 19 Mar'20 Jul' Jul'20 2019 2020 2020 2019 2020 (initia (initial) l) (r (revis ised) Mining majors helped industry destock by Output cuts at the assets with higher A number of small projects were    the end of 2019 and continued to support variable costs, and with lower vs average rescheduled or put on hold in 2020 profitability No impact on operational performance  E.g. ALROSA: from Mar’ 20 - minimum  … thus helping reduce cash outlays and  2020 capex outlook was revised  contracted volumes cut to 50% speed up w/c release once demand downward from RUB 22 bn by … starting Apr’ 20 up to 100% of purchases recovers  RUB 1-2 bn could be deferred to buy later in 2020 From Aug’ 20 – obligations to buy are cut  by 50% Source: Company data and analysis. 5

DIAMOND MARKET OVERVIEW Miners 1 adjusted diamon Diam amon ond jewelry y demand in Q2 ’ 20 20 onds s supply Polish sher ers s structu ctura rally lly reduced stocks ks yoy change, U.S. PCE on jewelry $ bn $ m, 2020 Net import -75% Net export 3.8% 1.9% 1.6% 1,489 1,391 721 704 3.0 285 (4.2%) 2.5 0 1,135 689 272 220 79 -4 (25%) (27%) 11% yoy change 0.7 (9%) (10%) (50%) (55%) (59%) (68%) (51%) (82%) (84%) (91%) (100%) Jan Jan Feb eb Mar Apr May Ju Jun 2018 2019 Q1'2 '20 Q2'2 '20 Apr'2 Ap '20 Ma May'2 '20 Ju Jun'2 '20 Q2' 2'19 Q1'2 '20 Q2' 2'20 20 Major diamond producers adjusted Better offtake in H2 ’ 19 allowing to bring After strong start in Jan ’ 20 pandemic led    supply to prevent stock-building at mid- supply and demand into balance by the to stores closure in Feb-May, retailers stream and price decreases year-end used their existing stocks Production equivalent of ~30% of In June retail sales started to increase Mid-stream decreases almost to zero    diamond capacity was closed in March- rough purchases on lock-downs/travel showing their first yoy gain since early in April restrictions 2020 Source: Company data and analysis, GJEPC, Bureau of Economic Analysis. 1. Data based on results of ALROSA and other diamond producers with a market share totaling c. 75% in 12M 2019. 6