28 August 2015

Investor Presentation –Q2 and H1 2015 Results

2

Disclaimer

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.

3

Key H1 2015 financial highlights

EBITDA margin

Revenue

Net profit

EBITDA Free cash flow

53%

131.9RUB bn

+26%

70.5RUB bn

+49%

47.4RUB bn

H1 2014: 45%

H1 2014: RUB 104.8 bn

H1 2014: RUB 23.1 bn

H1 2014: RUB 47.3 bn H1 2014: RUB 20.6 bn

35.4 RUB bn

+72%

Diamond sales18.0mln cts

(15%)

H1 2014: 21.1 mln cts

2.1x

Net Debt

Net debt / EBITDA 1.2х

31.12.2014: 1.9х

31.12.2014: RUB 175.5 bn

140.8RUB bn

(20%)

4

Financial results

RUB mln Q2 2015 Q1 2015 Change H1 2015 H1 2014 Change

Operating performance

Production, mln cts 9.6 8.4 15% 18.0 15.9 13%

Sales, mln cts 9.0 9.0 0% 18.0 21.1 (15%)

IFRS statement of profit or loss and other comprehensive income

Revenue 57,288 74,580 (23%) 131,868 104,789 26%

Cost of sales (26,885) (27,995) (4%) (54,880) (50,271) 9%

EBITDA(1) 27,610 42,863 (36%) 70,473 47,289 49%

EBITDA margin 48% 57% - 53% 45% -

Net profit / (loss) 25,167 22,231 13% 47,398 23,117 2.1x

Net profit margin 44% 30% - 36% 22% -

EPS, RUB 3.40 2.93 16% 6.33 3.07 2.1x

IFRS statement of cash flows

Cash inflow from operating activities before changes in working capital 71,226 47,115 51%

Income tax paid (9,982) (9,724) 3%

Changes in working capital (10,240) (625) 16x

Net cash inflow from operating activities 51,004 36,766 39%

Purchase of property, plant and equipment (15,568) (16,206) (4%)

Free cash flow(2) 35,436 20,560 72%

IFRS statement of financial positionas at

30.06.15

as at

31.12.14Change

Cash and cash equivalents 43,237 21,693 99%

Total debt 184,035 197,160 (7%)

Net debt 140,798 175,467 (20%)

Net debt / EBITDA 1.2х 1.9х -

Equity attributable to owners of PJSC ALROSA 169,151 137,051 23%

(1) as used in this presentation, EBITDA is defined as operating profit adjusted for depreciation and amortisation, profit/loss on disposal of subsidiaries, loss on disposal and write-off of property, plant and equipment,

foreign exchange differences attributable to operating activity

(2) as used in this presentation, free cash flow is defined as net cash inflow from operating activities less purchase of property plant and equipment

Note:

Revenue in H1 2014Increase in revenue from

diamond salesIncrease in other revenue

Decrease in revenue from

sales of gasRevenue in H1 2015

5

H1 2015 revenue growth y-o-y was mainly driven by higher diamond sales

104,789

26,559 971 (451)

131,868+26%

+28% +14% (13%)

Revenue analysisRUB mln

6

Growth of gem-quality rough diamond sales in H1 2015 was driven by ruble depreciationagainst the US dollar

Gem-quality

rough diamond sales

in H1 2014

Ruble depreciationSales volume

decrease

Decrease in average price of

gem-quality diamonds

Gem-quality

rough diamond sales

in H1 2015

89,019

43,761 (16,968)(1,883)

113,928

+28%

Average price of

gem-quality rough diamonds

sold in H1 2014

Average price decrease due to

change in product mix

Average price decrease due to

market conditions

Average price of

gem-quality rough diamonds

sold in H1 2015

172

(1)

(3)

168(2%)

Gem-quality rough diamond revenue analysisRUB mln

$/carat

Gem-quality rough diamond average price analysis

7

Decrease in sales and ruble appreciation against the US dollar led to decline of gem-qualityrough diamond sales in Q2 2015 vs Q1 2015

Gem-quality

rough diamond sales

in Q1 2015

Increase in average price of

gem-quality diamonds

Sales volume

decreaseRuble appreciation

Gem-quality

rough diamond sales

in Q2 2015

65,729

5,140 (12,721)

(9,949)

48,199

(27%)

Average price of

gem-quality rough diamonds

sold in Q1 2015

Average price growth due to

change in product mix

Average price decrease due to

market conditions

Average price of

gem-quality rough diamonds

sold in Q2 2015

161

20

(5)

176+9%

Gem-quality rough diamond revenue analysisRUB mln

$/carat

Gem-quality rough diamond average price analysis

8

Higher production cost was triggered by wages, salaries and other staff costs, extraction tax, depreciation and fuel and energy costs

H1 2015 H1 2014H1 2015

vs.

H1 2014

Wages, salaries and other staff costs 20,910 16,818 24%

Extraction tax 11,024 6,515 69%

Depreciation 9,459 7,459 27%

Fuel and energy 8,556 6,008 42%

Materials 4,667 4,088 14%

Services 2,074 2,031 2%

Transport 1,069 1,511 (29%)

Other 742 214 3.5х

Cost of production 58,501 44,644 31%

Movement in inventory of diamonds, ores and

concentrates(4,136) 5,128 -

Cost of diamonds for resale 515 499 3%

Cost of sales 54,880 50,271 9%

15% Fuel and energy

36% Wages, salaries and other

staff costs

16% Depreciation

19% Extraction tax

2% Transport

8% Materials

3% Services

1% Other

на заработную плату, НДПИ, амортизацию, топливо и энергию

Production costs in H1 2015Cost of salesRUB mln

• Wages, salaries and other staff costs increased against H1 2014 as a result of indexation at the inflation rate, change in methodology of accrual of

annual remuneration reserve, diamond production increase including growth of production at Severalmaz and Udachny underground mine

• Extraction tax (MET) payments growth in H1 2015 resulted from the Ministry of Finance’s new diamond pricelist for MET calculation coming into force

on 15 March 2014 and from ruble depreciation against the US dollar

• Depreciation growth resulted from diamond production increase which includes growth of production at Severalmaz, Udachny underground mine and

Botuobinskaya open pit

• Fuel and energy costs growth y-o-y mainly results from the reclassification of costs for the purchase of electricity from ALROSA’s subsidiary

Viluyskaya HPP-3, as well as higher diesel prices and increased scope of work at ALROSA Group enterprises, including Mir underground mine,

Botuobinskaya open pit and Severalmaz.

9

H1 2015 EBITDA increased y-o-y due to growth in gross profit from diamond sales

EBITDA

in H1 2014

Increase in

gross profit

Increase in exploration

costsIncrease in SG&A

Increase in other

expenses

Increase in

social costs

EBITDA

in H1 2015

47,289

24,471

(754) (380) (88) (65)

70,473

53%

45%

+49%

RUB mln

EBITDA margin

EBITDA analysis

10

Net profit increased in H1 2015 y-o-y due to EBITDA growth and decline in FX losses

Net profit

in H1 2014EBITDA growth

Decrease

in FX lossOther

Increase in income tax

expense

Increase

in depreciation

Net profit

in H1 2015

23,117

23,184

5,854 392

(3,148)(2,001)

47,398

2.1x

Net profit analysisRUB mln

11

H1 2015 total capex decreased y-o-y mainly due to reduction of investments in the expansion

Capex

in H1 2014Maintenance Expansion Gas assets

Non-mining

operations Social infrastructure

Capex

in H1 2015

H1 2015 9,818 2,877 1,208 1,239 425 15,568

H1 2014 7,151 7,031 377 1,286 361 16,206

16,206

2,667

(4,154)

831

(47)

64

15,568(4%)

(59%)+37% 3.2х +18%(4%)

Capital expenditure

Capital expenditure analysisRUB mln

12

Expansion capex decrease was mainly due to lower level of investments in expansion of Severalmaz and Udachny underground mine

Expansion capex

in H1 2014

Udachny underground mine 2,337 3,848

Aikhal underground mine - 411

Mir underground mine - 571

Open-pit mines at

Severalmaz 540 1,456

Botuobinskaya open pit - 745

Expansion capex

in H1 2015

(59%)

7,031

(1,511)

(411)

(571)

(916)

(745)

2,877

H1 2015 H1 2014

Capital expenditure

2,877 7,031

Expansion capex analysisRUB mln

Investments in

working capital

in H1 2014

Decrease in changes in

taxes payable

Decrease in changes in trade

and other payables

Increase in

inventories

Increase in changes

in trade and other receivables

Investments in

working capital

in H1 2015

13

Growth of investments in working capital in H1 2015 y-o-y was driven by the increase in ore and sand inventories in accordance with the Company’s plan and by an increase in prepayments to suppliers of oil products

Analysis of investments in working capitalRUB mln

(625)

382570

(8,192)

(10,240)

(2,375)

14

Free cash flow increased in H1 2015 due to growth in operating profit

Free cash flow

in H1 2014

Increase in

operating profitDecrease in capex

Increase of investments

in working capital

Increase in

income tax paid

Free cash flow

in H1 2015

20,560

24,111 638

(9,615) (258)

35,436

Free cash flow analysisRUB mln

+72%

15

After repayment of bonds in the total amount of RUB 10 bn in H1 2015, total debt reduced to USD 3.3 bn. ALROSA generated liquidity for repayment of ruble-denominated bonds in H2 2015

180(1)435

1,090

600

1,000

2015 2016 2017 2018 2020

Bank loans Ruble-denominated bonds Eurobonds

3,8342,5953,732

$ mln

3,951

36% Public debt instruments

64% Bank loans 30% Eurobonds

6% Ruble-denominated

bonds

6% Ruble-denominated debt94% US dollar-denominated debt

81% Long-term debt 19% Short-term debt

3,4963,130

2,866

3,8714,127

3,505 3,315

2009 2010 2011 2012 2013 2014 30.06.2015

3,210 3,119

Total

debt/

EBITDA6.1x 2.9x 1.5x 2.0x 2.0x 2.1x 1.6x

Loans and borrowings Loans and borrowings breakdown$ mln As at 30 June 2015

For reference: ALROSA net debt

Maturity profile of loans and borrowings$ mln

Note: (1) recalculated at 55,5240 RUB/USD exchange rate

2,536

Thank you!

Corporate Finance and AnalyticsInvestor Relations

Russia, 119017, Moscow10-12, 1st Kazachy Per.

+7 495 745 5872ir@alrosa.ru