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Dividend policy

ALROSA’s dividend policy is based on the following principles:

  • balancing the Company’s and shareholders’ interests in determining the amount of dividends as well as a balance between the shareholders’ short-term (gaining profit) and long-term (Company development and capitalisation growth) interests;
  • maintaining the Company’s required financial status and ensuring its development prospects;
  • enhancing the Company’s investment appeal and its capitalisation;
  • compliance with the shareholder rights provided for in the current legislation of the Russian Federation, the Company’s Charter and its internal documents;
  • transparency of dividend calculation and dividend payment mechanisms which the Company’s Supervisory Board and Annual General Meeting are guided by in preparing recommendations for determining the amount of dividend and passing resolutions on payment of dividend.

In accordance with current legislation, the Charter, the Regulations on OJSC ALROSA’s Dividend Policy and the Regulations on Remuneration to Members of OJSC ALROSA’s Supervisory Board, net profit may be allocated to pay dividends on shares, establish a reserve fund and pay remuneration to Supervisory Board members.

The resolution of the Annual General Meeting of 30.06.2012 approved the following distribution of net profit earned based on the results of 2011 in the amount of  RUB 29 519.0 million

  • RUB 7,438.6 million for payment of dividend on shares;
  • RUB 7.3 million for payment of remuneration to Supervisory Board members;
  • RUB 22,073.1 million profit remaining in the Company.

The profit shall be used in accordance with the distribution approved by the shareholders’ meeting.

It is proposed to distribute the net profit of OJSC ALROSA in the amount of  RUB 39,657.3 million based on the results of 2012 as follows:

  • RUB 8,175.1 million for payment of dividend on shares;
  • RUB 31,482.2 million profit remaining in the Company (before payment of remuneration to Supervisory Board members).

In accordance with the Regulations on Remuneration to Members of OJSC ALROSA’s Supervisory Board, the amount of remuneration for work in the Supervisory Board will be decided based on the results of the corporate period (year) — from 30.06.2012 to 30.06.2013. The profit remaining in the Company will be reduced by the amount of remuneration to the members of the Supervisory Board.

ALROSA’s dividend history

Year Amount of dividend, RUB (calculated per 1 common share) Accrued, million RUB Paid, million RUB Share of net profit allocated to dividend, %
For 2006 0.30 2,240.0 2,240.0 14.40
For 2007 0.30 2,240.0 2,240.0 15.80
For 2008 0.00 0.00 0.00 0.00
For 2009 0.03 249.90 249.50 10.60
For 2010 0.25 1,833.2 1,828.2 20.90
For 2011 1.01 7,438.6 7,414.8 25.20
For 2012 (recommended amount) 11.10 8,175.1 24.3

Accrual and payment of dividend to main shareholders, million RUB

Year Russian Federation Sakha Republic (Yakutia) Sakha Rep. (Yakutia) ulus authorities Other shareholders Total
accrued paid accrued paid accrued paid accrued paid accrued paid
2006 828.8 828.8 716.8 716.8 179.2 179.2 515.2 515.2 2,24 2,24
2007 828.8 828.8 716.8 716.8 179.2 179.2 515.2 515.2 2,24 2,24
2008 based on 2008 results, dividends were not accrued and not paid
2009 127.2 127.2 80 80 20 20 22.7 22.3 249.9 249.5
2010 933.5 933.5 586.6 586.6 146.7 146.7 166.3 161.4 1,833.1 1,828.2
2011 3, 788.2 3,788.2 2, 380.4 2, 380.4 595.1 595.1 675.0 651.2 7, 438.6 7, 414.8

The Diamonds in The Russian Avant-garde jewellery collection was created at the initiative of OJSC ALROSA. The design of this Annual Report is based on sketches of items from this collection. In 2012, the collection was donated to the museums of the Moscow Kremlin.

Metronom Ring
Designer: Natalia Belova

Moscow, JT—Jewellery Theatre, 2001
Craftsman: Nikita Travin

White gold, diamonds

Copernikus 2000 Kinetic Installation
Designer: Felix Kuznetsov

Moscow, JT—Jewellery Theatre, 2001
Craftsman: Sergei Kuchis
White gold, diamonds, plastic

Yaranga Brooch
Designer: Natalia Bikova

Moscow, JT–Jewellery Theatre, 2001
Craftsman: Sergei Kuchis
White and yellow gold, diamonds

Ferz Ring Installation
Designer: Irina Dorofeeva

Moscow, JT—Jewellery Theatre, 2001
Craftsman: Evgeny Sukhov
White gold, diamonds, acrylic, ebonite

Fan-2 Ring
Designer: Valentina Sorokina

Moscow, JT—Jewellery Theatre, 2001
Craftsman: Evgeny Sukhov
White gold, diamonds

Pyramid Earring
Designer: Lyubov Narizhnaya

Moscow, JT—Jewellery Theatre, 2001
Craftsman: Evgeny Sukhov
Yellow gold, diamonds

Extrovert Ring
Designer: Elena Mamontova.

Moscow, JT—Jewellery Theatre, 2001.
Craftsman: Nikita Travin
White gold, diamonds

Transformer 1×12
Adornment Designer: Vera Naumova

Moscow, JT—Jewellery Theatre, 2001.
Craftsman: Pavel Gramazhora,Alexander Yastrebov
White and yellow gold, diamonds, steel