September 2014

Investor Presentation

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 Prospectus 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

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. 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,

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.

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

offered 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.

44% The Russian

Federation

25% The Republic of Sakha

(Yakutia)

8% Yakutian municipal districts

23% Free float

3

ALROSA at a Glance

ALROSA is a public diamond mining company with 23%

free-float on the Moscow Exchange

Strong financial performance resulting in 12% y-o-y

revenue growth to $5.3 bn and solid EBITDA(1) margin of

41% in 2013

Robust cash flow performance with $500 mln in 2013

ALROSA’s shareholder structure

4,868 5,287

1,999 2,170

41% 41%

2012 2013

Revenue, $ mln EBITDA, $ mln

EBITDA margin, %

Financial summary

1,357

1,681

(967) (1,192)

390 489

2012 2013

Net Operating Cash Flow Capex Free Cash Flow

Strong adjusted cash flow generation $ mln

Note: (1) As used in this presentation, EBITDA is adjusted for loss on disposal of property plant and equipment, impairment / (reversal of impairment) of property, plant and equipment, net (gain) / loss from cross currency interest rate swap contracts, (gain) / loss from change of fair value of put options granted by the Group to the buyers of ZAO Geotransgaz and OOO Urengoyskaya Gazovaya Company, net (gain) / loss from foreign exchange forward contracts

(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

(2)

Обновить

Source: Company data, public sources

Note: (1) ALROSA’s subsidiary Severalmaz

(2) Largest mine in Angola Catoca is 32.8% owned by ALROSA

4

Global diamond market footprint Largest global diamond assets

Australia

Argyle (Rio Tinto)

Diamond assets of ALROSA

Diamond assets of other companies

Tanzania

Williamson (Petra Diamonds)

Yakutia (ALROSA) (5 mining divisions)

5 open pit mines

4 underground mines

13 alluvial placers

Botswana

Jwaneng (De Beers)

Orapa (De Beers) Gope (Gem Diamonds)

Karowe (Lucara Diamonds)

Angola (ALROSA)

Catoca (32.8%)(2)

Canada

Ekati (Dominion Diamond Corp.)

Diavik (Rio Tinto / Dominion Diamond Corp.)

Victor (De Beers)

Gahcho Kue (De Beers / Mountain Province)

Snap Lake (De Beers)

Renard (Stornoway)

Star (Shore Gold / Newmont)

Democratic Republic of Congo

Mbuyi-Mayi

Arkhangelsk diamond province (1 mining division)

Lomonosov deposit (ALROSA) (1)

Arkhangelsk diamond province

Grib (LUKOIL)

Zimbabwe

Marange (ZMDC)

Namibia

Debmarine (De Beers)

South Africa and Lesotho

Venetia (De Beers)

Finsch (Petra Diamonds)

Cullinan (Petra Diamonds)

Lace (DiamondCorp)

Kao (Namakwa Diamonds)

Lighobong (Firestone)

Letseng (Gem Diamonds)

5

Diamond supply In next decade global diamond production is expected to grow with 1.6% CAGR

During the crisis, in 2009, world diamond production dropped by 26% mainly due to De Beers production cut

In the medium term global diamond production is expected to grow with 4.7% CAGR due to rebound of production mainly at

Grib and Karpinskogo-1 (Russia), Argyle (Australia) and Gahcho Kue (Canada)

After 2018, global diamond production is expected to decline with -2.0% CAGR mainly because of Argyle (Rio Tinto), Diavik

(60% Rio Tinto and 40% Dominion Diamond Corp.) and Ekati (80% Dominion Diamond Corp.) depletion

Source: AWDC’s and Bain & Company’s 2013 report – “Journey through the Value Chain”

127 130

141 143

147 155 155 153

151 143 144 141

168 163

120 128

123 128

133

146

152

159

168 169 166 165

156 155 153

2007 2008 2009 2010 2011 2012 2013E 2014F 2015F 2016F 2017F 2018F 2019F 2020F 2021F 2022F 2023F

Existing mines New mines

Global diamond production forecast

CAGR 12-18F

4.7% CAGR 18F-23F

-2.0%

CAGR 12-23F

1.6%

mln cts

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Other Gulf Europe Japan

India China USA

6

Diamond demand Diamond jewelry sales is expected to grow at 6.4% CAGR in the long-term

World demand for rough diamonds is driven by diamond jewelry sales

Today, USA accounts for 37% of the global diamond jewelry market, China – for 15% and India – for 11%

Overall diamond jewelry sales growth would be driven by China and India

USA 45 41 29 27 25 27 28 30 31 32 33 34 35 35 36 37 38

China 5 7 6 8 9 11 12 14 16 17 19 20 22 23 25 27 28

India 8 9 7 7 8 8 10 12 13 15 16 17 19 21 22 24 26

Total 100 95 74 73 67 72 80 87 94 98 103 108 113 118 124 129 136

CAGR 12-23F

USA 3.2%

China 9.1%

Diamond jewelry sales forecast (2012-2023F)

India 11.4%

Source: AWDC’s and Bain & Company’s 2013 report – “Journey through the Value Chain”; Company’s forecast

$ bn

Japan 1.9%

CAGR 12-23F

6.4%

Europe 2.3%

Gulf 7.5%

Other 6.0%

100 95

74 73 72 67

80 87

94 98

103 108

113 118

124 136

129

7

Source: Company data, JORC as of 01 July 2013 (Micon) Note: (1) Resources are inclusive of reserves. Reserves and resources data in this presentation do not include reserves or resources of Catoca, which is a 32.8% investment and is not consolidated in

ALROSA’s financial statements (2) GKZ (the Russian State Commission for Mineral Reserves) as of 01 July 2013. Includes GKZ off-balance reserves of 27.2 mln cts (3) JORC as of 01 July 2013 (Micon). The Micon report as of 01 July 2013 covered all major deposits of ALROSA, excluding certain alluvial deposits and undeveloped resources

Republic of

Sakha

(Yakutia)

Russian Federation Yakutsk

Moscow

6 open pit mines

4 underground mines

13 alluvial placers

Total resources(1)

GKZ: 1,181 mln cts(2)

JORC: 973 mln cts(3)

Angola

Angola Investment

Open Underground Alluvial

Catoca Mining (32.8%) 8

Arkhangelsk

Severalmaz

7

Nyurba Division 2

Mirny Division 1

Aikhal Division 4

Nizhne-Lenskoe 6

Almazy Anabara 5

Udachny Division 3

ALROSA diamond assets overview Well-balanced portfolio of the mining assets in one of the resource richest regions of Russia

Подземный

рудник Удачный

8

Notes: (1) Proven and probable reserves (2) Measured, indicated and inferred resources. Resources are inclusive of reserves (3) Only pipes/placers currently in operations are shown (4) Includes reserves and resources for Udachny ore stockpile and Udachny underground mine (5) Reserves and resources for Nizhne-Lenskoe, which was acquired by ALROSA in 2013, are based on GKZ classification and have not been verified according to JORC standards (6) Not consolidated, ALROSA owns a 32.8% interest

Diversified portfolio of high grade diamond mining assets

cts/t

Grade per type of mining in 2013

Source: Company data, JORC as of 01 July 2013 (Micon)

Source: Company data

Production Method

Reserves (mct)(1)

Resources (mct)(2)

2012 Production

(mct)

% of 2012 Pro-forma

Production

Number of Pipes/

Placers

Mirny Division 133.8 186.8 8.7 24% 2/3

Nyurba Division 123.2 175.9 8.0 22% 1/1

Udachny Division(4) 132.4 239.8 5.8 16% 2/0

Aikhal Division 121.6 218.7 8.9 25% 3/0

Almazy Anabara 26.7 29.6 2.4 7% 0/5

Severalmaz 64.1 115.5 0.6 2% 1/0

Solur-Vostochnaya Placer

5.7 6.8 NA NA 0/0

Consolidated Total (JORC, excl. Nizhne-Lenskoe)

607.5 973.0 34.4 96% 9/9

Nizhne-Lenskoe(5) NA NA 1.5 4% 0/4

Consolidated Total (Pro-forma Nizhne-Lenskoe)

NA NA 35.9 100% 9/13

Catoca Limited(6) NA NA 6.7 NA 1/0

Open Underground Alluvial

Production by type of operations

mln cts

Source: Company data

(3)

Large diversified resource base

74% 57%

47%

18%

26% 34%

8% 17% 19%

34.3

2010A 2013A 2021 Target

Open pit mining Underground mining Alluvial mining

36.9 41.3

1,0 1,2

5,7

0,4

Total Open-pit Underground Alluvial

КАТОКА 2013

Обновить

9

Marketing strategy overview ALROSA is constantly improving and developing geographic and contract structure of its revenue

2013 ALROSA rough diamond sales by channel

After ceasing rough diamond sales to De Beers

in 2008, ALROSA has fully switched to direct

sales to its customers and has been

implementing a 3 channel distribution strategy

that is focusing on long-term contracts to

improve stability of cash flows

Currently ALROSA has 45 clients under long-

term contracts, which stipulate for the supply of

rough diamonds consisting of the pre-agreed

assortment and volume on a monthly basis and

291 spot clients

Spot and long-term clients are being selected

based on their compliance with the

requirements for a stable business reputation,

historical diamond purchasing volumes, stable

financial position, size of turnover and

debt/equity ratio

Trading offices

Rep. offices

New York

Antwerp London

Geneva

Moscow

Ramat-Gan Dubai Hong Kong

Luanda

Geography of ALROSA marketing operations

64% Long-term contracts

21% Spot sales

15% Auctions

10

2013 Financial Results

$ mln 2013 2012

2013

vs

2012

Operational Figures

Production, mln cts 36.9 34.4 7%

Sales, mln cts 38.0 33.2 15%

IFRS Income Statement

Revenue 5,287 4,868 9%

Cost of sales (2,567) (2,208) 16%

EBITDA 2,170 1,999 9%

EBITDA margin 41% 41% -

Net profit 989 1,086 (9%)

Net profit margin 19% 22% -

EPS, RUB 0.13 0.15 (14%)

IFRS Balance Sheet

Cash and cash equivalents 283 206 37%

Total debt 4,234 4,040 5%

Total debt / EBITDA 2.0x 2.0x -

Equity attributable to owners of OJSC ALROSA 4,910 4,344 13%

IFRS Cash Flow Statement

Cash inflow from operating activities before changes in working capital 2,113 1,996 6%

Income tax paid (337) (356) (5%)

Changes in working capital (95) (283) (66%)

Net cash inflow from operating activities 1,681 1,357 24%

Purchase of property, plant and equipment (1,192) (967) 23%

Free cash flow 489 390 25%

Примечание: (1) Показатель EBITDA, используемый в данной презентации, определяется как прибыль за данный период, скорректированная на величину налога на прибыль, долю чистой

прибыли от инвестиций в зависимые общества и совместные предприятия, чистые финансовые затраты (сумму финансового дохода и финансовых затрат), амортизацию,

потери от выбытия основных средств, чистую (прибыль)/убыток от реализации дочерних компаний

(2) Чистый денежный поток, используемый в данной презентации, определяется как чистый приток денежных средств от производственной деятельности, минус

приобретение основных средств

11

H1 2014 Financial Results

RUB mln Q2 2014 Q1 2014 Q2 2014

vs.

Q1 2014

H1 2014 H1 2013 H1 2014

vs.

H1 2013

Operational Figures

Production, mln cts 8.0 7.9 1% 15.9 17.1 (7%)

Sales, mln cts 8.4 12.7 (34%) 21.1 19.1 10%

IFRS Income Statement

Revenue 47,939 56,850 (16%) 104,789 82,229 27%

Cost of sales (22,181) (27,906) (21%) (50,087) (39,211) 28%

EBITDA(1) 21 267 26 022 (18%) 47 289 35 245 34%

EBITDA margin 44% 46% - 45% 43% -

Net profit 17,134 5,983 2.9х 23,117 14,616 58%

Net profit margin 36% 11% - 22% 18% -

EPS, RUB 2.31 0.77 3.0x 3.07 1.95 57%

IFRS Balance Sheet

Cash and cash equivalents 31,406 12,844 2.4х

Total debt 144,082 141,611 2%

Net debt 112,676 128,767 (12%)

Net debt / EBITDA 1.4х 2.1x -

Equity attributable to owners of OJSC ALROSA 172,392 141,111 22%

IFRS Cash Flow Statement

Cash inflow from operating activities before changes in working capital 45,936 34,946 31%

Income tax paid (9,724) (6,225) 56%

Changes in working capital (625) (4,692) (87%)

Net cash inflow from operating activities 35,587 24,029 48%

Purchase of property, plant and equipment (15,027) (14,928) 1%

Free cash flow(2) 20,560 9,101 2.3х

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

(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 2013 Increase in revenue from

diamond sales

Increase in revenue from

sales of gas Increase in other revenue (1) Revenue in H1 2014

12

Рост выручки в 1 п/г 2014 г. связан главным образом с увеличением выручки в алмазном сегменте и выручки от продажи газа

82,229

20,596 1,510

454

104,789

+27%

Revenue analysis

+28% +84% +7%

(1) в состав прочей выручки входят следующие сегменты: транспорт, социальная инфраструктура, торговля, строительство, прочая деятельность Примечание:

RUB mln

H1 2014 revenue growth was mainly driven by increased diamond sales and sales of gas

Note: (1) other revenue includes: transportation, social infrastructure, trading, construction, other activities

13

Gem-quality

rough diamond sales

in H1 2013

Sales volume

growth

Increase in average price of

gem-quality diamonds Ruble depreciation

Gem-quality

rough diamond sales

in H1 2014

70,266

5,121 3,082

10,550

89,019

+27%

Gem-quality rough diamond revenue analysis RUB mln

$/carat

Average price of gem-quality

rough diamonds

sold in H1 2013

Average price increase due to

changes in product mix

Average price decrease due to

market conditions

Average price of gem-quality

rough diamonds

sold in H1 2014

165

8

(1)

172 +4%

Gem-quality rough diamond average price analysis

+5% (<1%)

Ruble depreciation, as well as higher diamond sales volume and average price growth due to changes in sales product mix resulted in an increase in gem-quality rough diamond revenue in H1 2014

Снижение курса рубля, а также увеличение объемов реализации алмазов и рост средней цены за счет изменения ассортимента продаж являются основными факторами роста выручки от продаж алмазов ювелирного качества в 1 п/г 2014 г.

Revenue in Q1 2014 Decrease in revenue from

diamond sales

Decrease in revenue from

sales of gas Decrease in other revenue (1) Revenue in Q2 2014

14

Снижение выручки во 2 кв. 2014 г. по сравнению с 1 кв. 2014 г. связано со снижением выручки в алмазном сегменте и выручки от продажи газа

Revenue analysis RUB mln

56,850

(8,500) (284) (127)

47,939

(16%)

(16%) (4%) (16%)

(1) в состав прочей выручки входят следующие сегменты: транспорт, социальная инфраструктура, торговля, строительство, прочая деятельность Примечание:

Q2 2014 revenue decline was mainly driven by decreased diamond sales and sales of gas

Note: (1) other revenue includes: transportation, social infrastructure, trading, construction activity, other activities

15

Снижение объемов реализации алмазов является причиной снижения выручки от продаж алмазов ювелирного качества во 2 кв. 2014 г. по сравнению с 1 кв. 2014 г. Увеличение средней цены обусловлено изменением ассортимента продаж и ростом спроса

Gem-quality

rough diamond sales

in Q1 2014

Sales volume

decrease

Gem-quality average diamond

price growth Ruble depreciation

Gem-quality

rough diamond sales

in Q2 2014

48,696 (17,525)

9,136 16

40,323

(17%)

Gem-quality rough diamond revenue analysis RUB mln

Gem-quality rough diamond average price analysis $/carat

Average price of gem-quality

rough diamonds

sold in Q1 2014

Average price growth due to

change in product mix

Average price growth due to

market conditions

Average price of gem-quality

rough diamonds

sold in Q2 2014

155

41 4

200 +29%

+27% +2,5%

Lower diamond sales volume caused a decrease in gem-quality rough diamond revenue in Q2 2014. Average price growth was driven by changes in sales product mix and increased demand

16

Основными факторами увеличения производственной себестоимости являются НДПИ, расходы на заработную плату и транспорт

H1 2014 H1 2013

H1 2014

vs.

H1 2013

Wages, salaries and other staff costs 16,818 15,601 8%

Depreciation 7,459 6,759 10%

Extraction tax 6,515 4,919 32%

Fuel and energy 6,008 6,278 (4%)

Transport 2,000 1,050 90%

Materials 3,599 3,947 (9%)

Services 1,847 1,173 57%

Other 214 142 51%

Cost of production 44,460 39,869 12%

Movement in inventory of diamonds, ores and

concentrates 5,128 (941) -

Cost of diamonds for resale 499 283 76%

Cost of sales 50,087 39,211 28%

H1 2014 cost of sales growth of +28% y-o-y was driven by increased diamond sales volume by +10%, higher depreciation, transport costs

and extraction tax, as well as sales in other business areas, including sales of gas

Extraction tax (MET) hike in H1 2014 by +32% resulted from the new Ministry of Finance’s diamond pricelist for MET calculation coming into

force on 15 March 2014, ruble depreciation and increased production by our gas asset

Wages, salaries and other staff costs rose by +8% as a result quarterly indexation of wages at the inflation rate

H1 2014 transportation costs increased by +90% y-o-y as a result of additional expenses of goods transportation by trucks in winter due to

reduced period of navigation on the Lena River in 2013

Depreciation growth in H1 2014 was triggered mainly by increased gas production, new equipment commissioning at Severalmaz, acquiring

and commissioning new equipment for alluvials at Almazy Anabara and Nizhne Lenskoye

Production costs in H1 2014 Cost of sales RUB mln

15% Extraction tax

38% Wages, salaries and other

staff costs

14% Fuel and energy

17% Depreciation

4% Services

8% Materials

4% Transport

less than 1% Other

Cost of production growth was mainly influenced by extraction tax, wages and salaries and transportation costs

Рост себестоимости продаж в 1 п/г 2014 г. на +28% к 1 п/г 2013 г. обусловлен увеличением объемов реализации алмазов в каратах

на +10%, ростом затрат на амортизацию, транспорт и НДПИ, а также ростом объемов реализации по прочим видам деятельности, в

том числе реализации газа

Увеличение НДПИ в 1 п/г 2014 г. на +32% связано с вступлением в силу с 15 марта 2014 года нового прейскурант Минфина для

целей расчета НДПИ, ослаблением курса рубля и увеличением объемов добычи по газовым активам

Расходы по заработной плате в 1 п/г 2014 г. увеличились на +8% в результате ежеквартальных индексаций в пределах инфляции

Расходы на транспорт в 1 п/г 2014 г. выросли на +90% результате дополнительных расходов на вывоз грузов автотранспортом по

зимнику в 1 квартале 2014 года вследствие сокращенного периода навигации на реке Лена в 2013 г.

Рост амортизации в 1 п/г 2014 г. обусловлен увеличением объемов работ по добыче газа, вводом нового оборудования в

эксплуатацию в ОАО «Севералмаз», приобретением и вводом оборудования для отработки россыпных месторождений

ОАО «Алмазы Анабара»

Other operating expenses decreased in H1 2014 mostly due to reduced exploration costs

17

Other operating expense

in H1 2013 Decrease in exploration costs

Decrease in

other operating expenses(1) Increase in social costs Other operating expense

in H1 2014

9,367

(610) (268)

434

8,923 (5%)

Прочие операционные расходы снизились в 1 полугодии 2014 г. в основном в результате снижения затрат на геологоразведку

RUB mln

Analysis of other operating expenses

Прочие операционные расходы

в 1 п/г 2013 г.

Снижение затрат на

геологоразведку

Снижение иных

операционных расходов(1) Увеличение

социальных расходов Прочие операционные расходы

в 1 п/г 2014 г.

(1) other operating expenses include taxes other than income tax, extraction tax and payments to social security funds, loss on disposal of property, plant and equipment, other operating expenses Note:

EBITDA in H1 2014 increased due to a growth in gross profit from diamond sales

EBITDA margin

18

EBITDA

in H1 2013

Increase in

gross profit (1)

Decrease in exploration

costs Other income

Increase in

social costs Increase in SG&A

EBITDA

in H1 2014

35,245

12,309 610 115

(434) (556)

47,289

45%

43%

+34%

EBITDA

в 1 п/г 2013 г.

Рост валовой

прибыли (1)

Снижение затрат на

геологоразведку

Рост

прочих доходов

Увеличение

социальных расходов

Увеличение общих,

административных и

коммерческих расходов

EBITDA

в 1 п/г 2014 г.

Рост показателя EBITDA в 1 п/г 2014 г. обусловлен в основном ростом валовой прибыли от продаж алмазов

EBITDA analysis RUB mln

Note: (1) gross profit net of depreciation

Net profit increased in H1 2014 y-o-y due to EBITDA growth and decline in FX losses

Net profit

in H1 2013 EBITDA growth

Decrease

in FX loss

Increase in income tax

expense Other(1) Increase

in depreciation

Net profit

in H1 2014

14,616

12,044

3,108

(3,810)

(2,216) (625)

23,117

+58%

19

Чистая прибыль в 1 п/г 2014 г. увеличилась по сравнению с 1 п/г 2013 г. в связи с ростом показателя EBITDA и снижением убытка от курсовых разниц

Чистая

прибыль

в 1 п/г 2013 г.

Рост EBITDA

Снижение

убытка от

курсовых разниц

Увеличение

расходов по

налогу

на прибыль

Прочее (1) Увеличение

расходов на амортизацию

Чистая

прибыль

в 1 п/г 2014 г.

(1) прочее включает рост убытков от выбытия и списания основных средств, рост доходов от ассоциированных компаний, снижение расходов по процентам, снижение

прочих доходов

Примечание:

(1) other includes increase in loss on disposal of property, plant and equipment, higher income from associates, decrease in interest expenses and in other income

Note:

Net profit analysis RUB mln

H1 2014 Capex is in line with H1 2013

Capex

in H1 2013 Maintenance Expansion Gas assets

Non-mining

operations Social infrastructure

Capex

in H1 2014

H1 2014 6,900 6,236 373 1,193 325 15,027

H1 2013 5,987 6,468 1,242 1,046 185 14,928

14,928

913

(232)

(869)

147 140

15,027 +1%

(4%) +15% (70%) +76% +14%

Capital expenditure

20

Капитальные вложения в 1 п/г 2014 г. находятся на уровне аналогичного периода прошлого года

Капитальные затраты

в 1 п/г 2013 г.

Техническое

обслуживание и

переоборудование

существующих

добывающих мощностей

Расширение

добывающих

мощностей

Газовые активы Недобывающая

деятельность

Социальная

инфраструктура Капитальные затраты

в 1 п/г 2014 г.

Capital expenditure dynamics RUB mln

Expansion Capex decreased due to the completion of the second module of the processing plant at Severalmaz

Expansion Capex

in H1 2013

Udachny underground mine 3,355 3,098

Aikhal underground mine 411 595

Mir underground mine 571 649

Open-pit mines at

Severalmaz 1,155 1,731

Botuobinskaya open pit 745 395

Expansion Capex

in H1 2014

(4%)

6,468

257

(184)

(78)

(576)

350

6,236

H1

2014

H1

2013

Capital expenditure

6,236 6,468

21

Expansion Capex dynamics RUB mln

Снижение инвестиций в расширение добывающих мощностей связано с окончанием строительства II модуля обогатительной фабрики на ОАО «Севералмаз»

Инвестиции в расширение

добывающих мощностей

в 1 п/г 2013 г.

Подземный рудник

«Удачный»

Подземный рудник

«Айхал»

Подземный рудник «Мир»

ОАО «Севералмаз»

Трубка «Ботуобинская»

Инвестиции в расширение

добывающих мощностей

в 1 п/г 2014 г.

Cash inflow from changes

in working capital

In H1 2013

Decrease in

taxes payable

Decrease in trade and other

payables

Decrease in

inventories

Decrease in changes in trade

and other receivables

Cash inflow from changes in

working capital

In H1 2014

22

Cash inflow from changes in working capital in H1 2014 was mainly driven by decrease in inventories

(87%)

(730) (110)

4,098

809

(4,692)

(625)

Сокращение инвестиций в оборотный капитал в 1 п/г 2014 г. произошло в основном за счет сокращения запасов

Changes in working capital RUB mln

Инвестиции в оборотный

капитал

в 1 п/г 2013 г.

Снижение задолженности

по налогам к уплате

Снижение кредиторской

задолженности Уменьшение запасов

Увеличение дебиторской

задолженности

Инвестиции в оборотный

капитал в 1 п/г 2014 г.

23

Free cash flow increased due to growth in operating profit and reduction in investments in working capital

Free cash flow

in H1 2013

Increase in

operating profit

Reduction of investments in

working capital

Increase in

income tax Increase in Capex

Free cash flow

in H1 2014

9,101

10,990

4,067

(3,499) (99)

20,560

2,3х

Чистый денежный поток увеличился в результате роста доходов от операционной деятельности и снижения инвестиций в оборотный капитал

Free cash flow RUB mln

Чистый денежный

поток

в 1 п/г 2013 г.

Рост доходов от

операционной деятельности

Снижение инвестиций в

оборотный капитал

Увеличение расходов по

налогу на прибыль

Увеличение

капитальных затрат

Чистый денежный

поток

в 1 п/г 2014 г.

4,130

3,767

4,221 4,177

31.12.2013 31.03.2014 30.06.2014 today

24

The share of long-term debt is 81%, debt increased to create a liquidity source for upcoming Eurobond repayment in 2014

Dynamics of bank loans and public debt instruments

552

600

500

1,152

435

1,090 1,000

Q4 2014 2015 2016 2017 2020

Bank loans Ruble bonds Eurobonds

Bank loans and public debt instruments breakdown As of 29 August 2014

49% public debt instruments

51% Bank loans 36% Eurobonds

13% Ruble bonds

13% Ruble-denominated debt 87% US dollar-denominated debt

81% long-term debt 19% short-term debt

Debt maturity profile of bank loans and public debt instruments

$ mln

As of 29 August 2014, $ mln

29.08.2014

For reference: ALROSA net debt

112,676 120,788 129,321

RUB mln

25

New dividend policy The minimum payout was increased to 35% of net profit under IFRS

Dividends, Dividends per share(1) and Payout ratio(2)

2,240

0 250

1,833

7,439 8,175

10,826

14%

7%

16%

28%

24%

35%

0

0,05

0,1

0,15

0,2

0,25

0,3

0,35

0,4

2007 2008 2009 2010 2011 2012 2013

Dividends, RUB mln Payout ratio, % Dividends per share, RUB

0.30 0 0.03 0.25 1.01 1.11 1.47

Note: (1) Rebased to account for the share split which occurred in 2011

(2) Payout ratio was calculated as approved dividends for the respective year divided by profit attributable to owners of ALROSA (based on IFRS)

26

0

75

117

190

222

254

231

243

255

1

110

179

236

27

52

209

235

255

222

226

228

236

238

239

Appendix

27

Board of directors and corporate governance overview

According to ALROSA’s Charter Supervisory

Board (Board of Directors) consists of 15

members, including:

2 executive directors (CEO(1) and Vice-

President(2))

5 independent non-executive directors

under Russian standards of

independence

8 non-executive directors representing

the shareholders (5 directors from the

Russian Federation and 3 directors from

the Republic of Sakha (Yakutia))

3 Supervisory Board committees:

Strategic planning committee

(6 members, none independent)

HR & Remuneration committee

(5 members, all independent)

Audit committee

(5 members, all independent)

Shareholders

Supervisory Board (Board of Directors)

Management Board

Strategic planning committee (6 members, none independent)

HR & Remuneration committee (5 members, all independent)

Audit committee (5 members, all independent)

2 executive directors (CEO (1) and Vice-President(2))

3 non-executive directors representing the Republic of

Sakha (Yakutia)

CEO / Chairman of Executive Board

(F. Andreev)

First Vice President – Executive Director

(I. Sobolev)

First Vice President (I. Ryashchin)

Vice President – Finance Director

(I. Kulichik)

9 other directors

To

tal:

15 m

em

be

rs T

ota

l: 13 m

em

be

rs

Note : (1) Representing the Russian Federation

(2) Representing the minority shareholders

5 independent non-executive directors

5 non-executive directors representing the Russian

Federation

28

Detailed reserves and resources statement

Deposit JORC

Category

Tonnage

(kt)

Reserve

Grade

(ct/t)

Reserve

Carats

(kct)

Udachny Division

Udachnaya Pipe, underground mining Probable 83,017 1.31 108,627

Udachnaya Pipe, open pit mining Probable 4,267 1.03 4,407

Udachnaya Pipe, ore stockpile Proven 4,820 1.52 7,329

Zarnitsa Pipe Probable 58,538 0.20 11,995

Aikhal Division

Jubilee Pipe Probable 107,163 0.90 96,982

Aikhal Pipe Probable 5,217 4.37 22,789

Komsomolskaya Pipe Probable 4,847 0.37 1,807

Mirny Division

Mir Pipe Probable 29,586 3.29 97,230

International Pipe Probable 4,555 8.09 36,585

Solur-Vostochnaya

Solur-Vostochnaya Placer Probable 9,348 0.61 5,722

Nyurba Division

Nyurbinskaya Pipe Probable 9,875 4.09 40,394

Botuobinskaya Pipe Probable 13,839 5.13 70,971

Nyurbinskaya Placer Probable 6,373 1.85 11,813

Lomonosov Division (OJSC Severalmaz)

Archangelsky Pipe Probable 57,087 0.76 43,189

Karpinsky-1 Pipe Probable 18,438 1.13 20,918

Almazy Anabara

Ebelyakh and Gusinyy Ruchey Placer Probable 36,319 0.74 26,749

Total OJSC ALROSA

JORC Reserves

Proven 4,820 1.52 7,329

Probable 448,469 1.34 600,178

Total (1) 453,289 1.34 607,507

Reserves Resources inclusive of Reserves

Deposit JORC Category Tonnage

(kt)

Resource

Grade

(ct/t)

Resource

Carats

(kct)

Udachny Division

Udachnaya Pipe, ore stockpile Measured 4,820 1.52 7,329

Udachnaya Pipe, underground mining Indicated 75,265 1.50 112,782

Inferred 78,305 1.25 98,157

Udachnaya Pipe, open pit mining Indicated 3,785 1.19 4,501

Udachnaya Remnants above -280 m Indicated 3,247 1.54 4,995

Zarnitsa Pipe Indicated 58,554 0.21 12,007

Aikhal Division

Jubilee Pipe

Indicated 129,017 0.84 108,166

Inferred 65,977 0.62 40,594

Potential 8,431 0.32 2,734

Aikhal Pipe Indicated 7,729 4.68 36,159

Inferred 8,269 3.87 31,967

Komsomolskaya Pipe Indicated 4,812 0.38 1,808

Mirny Division

Mir Pipe Indicated 29,211 3.55 103,782

Inferred 10,913 3.11 33,940

International Pipe Indicated 4,208 8.73 36,739

Inferred 1,542 7.98 12,304

Solur-Vostochnaya

Solur-Vostochnaya Placer Indicated 7,527 0.78 5,903

Inferred 1,198 0.72 865

Nyurba Division

Nyurbinskaya Pipe Indicated 12,264 4.13 50,661

Inferred 1,192 5.42 6,465

Botuobinskaya Pipe Indicated 13,679 5.19 71,044

Inferred 2,685 5.14 13,790

Nyurbinskaya Placer Indicated 6,176 1.91 11,814

Inferred 6,407 1.66 10,638

Botuobinskaya Placer Inferred 1,085 0.49 537

Maiyskoe Kimberlite Body Inferred 3,841 2.86 10,996

Lomonosov Division (OJSC Severalmaz)

Arkhangelskaya Pipe Indicated 56,226 0.77 43,406

Inferred 39,408 0.98 38,623

Karpinsky-1 Pipe Indicated 24,988 1.08 26,960

Inferred 5,168 1.26 6,512

Almazy Anabara

Ebelyakh and Gusinyy Ruchey Placer Indicated 30,508 0.88 26,749

Inferred 6,308 0.45 2,848

Total for OJSC ALROSA

JORC Resources inclusive of

Reserves

Measured 4,820 1.52 7,329

Indicated 467,197 1,41 657,477

Inferred 232,298 1.33 308,235

Total (1) 704,315 1.38 973,041

Source: Micon report as at 01 July 2013 Note: (1) Does not include assets outside of JORC perimeter, with total GKZ reserves of 230 mln cts as at 01/01/2013

29

Diamond production

‘000 cts 2011 2012 2013 Q1

2013

Q2

2013

Q3

2013

Q4

2013

Q1

2014

Q2

2014

Aikhal Division 5,262 8,945 12,088 1,984 3,669 2,456 3,978 3,000 2,380

Jubilee pipe 3,589 6,272 8,975 1,940 2,232 2,456 2,347 2,325 2,369

Aikhal underground mine 1,306 2,520 3,062 0 1,435 0 1,627 639 0

Komsomolskaya pipe 367 153 50 44 2 0 4 36 11

Mirny Division 8,138 8,707 7,361 1,792 1,778 1,885 1,907 1,477 1,553

International underground mine 5,912 5,915 4,378 1,082 1,047 1,099 1,150 1,312 842

Mir underground mine 1,321 1,855 2,151 471 597 518 565 52 498

Alluvial and technogenic deposits 905 936 833 239 134 268 192 113 212

Udachny Division 10,583 5,845 4,892 1,598 1,383 480 1,430 1,117 1,039

Udachnaya pipe 10,374 5,642 4,735 1,557 1,330 466 1,382 1,055 1,012

Zarnitsa pipe 209 203 157 42 53 14 48 62 27

Nyurba Division 7,478 7,956 7,407 1,978 1,076 2,022 2,331 2,067 848

Nyurbinskaya pipe 6,950 7,276 6,591 1,978 801 1,509 2,303 2,067 612

Alluvial deposits 528 680 816 0 275 513 28 0 236

Severalmaz 557 559 636 126 142 155 213 233 394

Arkhangelskaya pipe 557 559 636 126 142 155 213 233 394

Almazy Anabara 2,534 2,408 2,521 0 967 1,554 0 0 1,239

Nizhne-Lenskoye (1)

1,506 1,521 2,010 0 612 1,398 0 0 590

Total 34,552 34,420 36,914 7,478 9,627 9,949 9,860 7,894 8,043

Note: (1) In 2012 and earlier Nizhne-Lenskoye results are not included into ALROSA operational results

30

Ore and sands processing

‘000 t 2011 2012 2013 Q1

2013

Q2

2013

Q3

2013

Q4

2013

Q1

2014

Q2

2014

Aikhal Division 11,165 10,526 9,817 2,605 2,644 2,040 2,528 2,436 2,244

Jubilee pipe 9,833 9,627 9,041 2,405 2,375 2,040 2,221 2,225 2,215

Aikhal underground mine 231 432 560 0 263 0 297 116 0

Komsomolskaya pipe 1,101 467 216 200 6 0 10 95 29

Mirny Division 3,184 5,354 5,347 516 1,383 2,135 1,313 469 1,320

International underground mine 747 711 489 130 118 113 128 151 97

Mir underground mine 339 508 638 145 184 154 156 20 141

Alluvial and technogenic deposits 2,098 4,136 4,220 242 1,081 1,868 1,029 298 1,082

Udachny Division 6,350 4,619 5,825 1,650 1,858 597 1,720 1,570 1,226

Udachnaya pipe 5,350 3,619 4,825 1,400 1,563 447 1,415 1,180 1,055

Zarnitsa pipe 1,000 1,000 1,000 250 295 150 305 390 171

Nyurba Division 2,100 2,105 2,040 400 375 805 460 410 375

Nyurbinskaya pipe 1,350 1,426 1,247 400 124 285 438 410 113

Alluvial deposits 750 679 793 0 251 520 22 0 262

Severalmaz 1,066 1,100 1,193 272 279 281 361 481 808

Arkhangelskaya pipe 1,066 1,100 1,193 272 279 281 361 481 808

Almazy Anabara 5,961 5,768 6,750 0 1,874 4,876 0 0 2,200

Nizhne-Lenskoye (1)

3,604 3,739 5,338 0 1,786 3,552 0 0 2,080

Total 29,826 29,472 36,310 5,443 10,199 14,286 6,382 5,366 10,253

Note: (1) In 2012 and earlier Nizhne-Lenskoye results are not included into ALROSA operational results

Thank you!

Corporate Finance and Analytics Investor Relations

1-st Kazachy Per., 10-12 Moscow 119017 Russia

Tel.: +7 495 745 58 72 ir@alrosa.ru