On October 18, 2010 the Supervisory Board of ALROSA held its regular meeting in Moscow, chaired by Vice Premier of the Russian Federation, Minister of Finance of the Russian Federation Alexey L. Kudrin.
The Board considered adjusting the Company’s financial targets for 2010.
The proposal to adjust financial and production targets for 2010 was based on a number of factors, such as the growing sales of the core products, indexation of the employee wages and salaries, lower interest on borrowings and debt service costs, current changes that have had a material effect on the company’s economy.
The Board approved the adjusted targets for 2010, as follows:
— rough diamond production (including rough diamond production by OJSC ALROSA-Nyurba of USD 2,319.4 million;
— rough diamond production by ALROSA Co. Ltd. of USD 1,723.9 million;
— consolidated diamond sales by the ALROSA Group of companies of 3,417.2 million in total,
this comprised of:
— rough diamond sales of USD 3,292.3 million,
— polished diamond sales of USD 124.9 million;
— ALROSA Co. Ltd. revenues from sales of products (works and services) of a total of RUB 118,625.7 million;
— ALROSA Co. Ltd. net profit from sales of products (works and services) before taxation of RUB10,274.9 million;
— ALROSA Co. Ltd. net profit of RUB 5,933.0 million;
— investment budget of RUB 30,334.8 million, including expenditure on capital construction of RUB 9,778.7 million, and expenditure on technical re-equipment of RUB 1,596.9 million;
— ALROSA Co. Ltd. exploration budget of RUB 2,759.8.
The Board heard the report of Minister of Property Relations of the Republic of Sakha (Yakutia), member of the Supervisory Board v. P. Efimov on measures relating to reorganization of Closed-type Joint Stock Company ALROSA into a public company.
The Board resolved to update the time-frame for re-organization of ALROSA into an open joint stock company as the draft amendments to the Law of the Republic of Sakhaа (Yakutia) of April 24, 2003 «On the Management and Disposal of the Stock of Joint-Stock Company ALROSA» passed the first reading in the State Assembly (Il Tumen) of the Republic of Sakha (Yakutia) at its first 2010 fall session plenary.
Based on the resolution of the Supervisory Board of April 20, 2010, the Committees on HR & Remunerations, Audit, and Strategic Planning were established within the structure of the Supervisory Board for preliminary review and working out recommendations on key priority matters. At its meeting on October 18, 2010 the Board, in compliance with the Company’s relevant Regulations and the Corporate Code of Conduct approved by the Government of the Russian Federation on November 28, 2001, elected its following members as chairmen of the above committees:
— the HR & Remuneration Committee — Yakov Moiseevich Urinson, a qualified state mandatory on the ALROSA Supervisory Board;
— the Audit Committee — Anatoly Vladimirovich Tikhonov, a qualified state mandatory on the ALROSA Supervisory Board;
— the Strategic Planning Committee — Alexander Alikhanovich Akhpolov, Director of the Administrative Department, Ministry of Finance of the Russian Federation, member of the Supervisory Board.