aeroflot group · 2018-11-09 · 232 235 240 182 196 204 0 112 4. revenue and yield 192 59 100 135...

Aeroflot Group

Goldman Sachs 7th Annual CEEMEA One-on-One Conference

9-10 November 2015

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1. Market Update

2. Aeroflot Group Overview

3. Operating Performance

4. Revenue and Yield Management

5. Fleet Overview

6. Financial Performance

7. Capital Structure and Liquidity

8. Appendix

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29.2 32.7 35.4 39.2 46.320.2 22.9

41.2 47.356.2

64.465.5

30.0 25.3

70.580.1

91.6103.7

111.8

50.2 48.2

-10.0

10.0

30.0

50.0

70.0

90.0

110.0

130.0

150.0

2010 2011 2012 2013 2014 6M 2014 6M 2015

6.2 7.011.5 14.0 17.6

7.7 10.37.9 9.4

16.017.4

17.1

7.97.6

14.116.4

27.531.4

34.7

15.7 17.9

0.0

10.0

20.0

30.0

40.0

50.0

2010 2011 2012 2013 2014 6M 2014 6M 2015

Russian Air Transportation Market

Russian Total Passenger

Traffic

(m PAX)1,2

Aeroflot Group Passenger

Traffic

(m PAX)

14.0%

10.7%

(4.9)%

33.4%

• Russian air transportation market declined in 6M 2015 on the back of macroeconomic instability, the decline primarily driven by

international market segment

• Aeroflot Group outperformed Russian market in 6M 2015 growing PAX by 14.0% with significant acceleration on domestic

routes as well as a slight slowdown on international routes mainly driven by reshaping of the charter subsidiary

Source: TCH, Company estimates 1 Incl. foreign carriers’ traffic 2 Market based on passenger traffic of both domestic and foreign carriers 3 In the charts, tables and text of this presentation, immaterial deviations in calculation of % change, subtotals and totals are due to rounding

37.0% 30.0% 20.5% 20.0% 31.2%

International2 19.2% 19.9% 28.5% 27.0% 26.1%

Domestic 21.2% 21.4% 32.5% 35.7% 38.1%

Aeroflot Group Overall Market Share2

30.3%

26.5% 29.8%

38.2% 44.9%

2010 – 2014 6M 2015/2014

(15.6)%

13.4%

22.5%

29.2%

International Routes Domestic Routes

31.1%

7.8%

(3.9%) CAGR FY09-14

Growth FY13-14

14.9%

14.2%

1.8%

18.0%

CAGR FY09-14

Growth FY13-14

(1.7%)

26.0%

Growth 6M 14-15

Growth 6M 14-15

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17.7%

13.5% 14.3% 15.1% 14.1%

10.6% 14.0%

(3.9)%

(8.1)% (7.5)% (4.6)%

0.3 % (3.2)%

(3.9)%

(13.8)%

(19.0)% (18.3)%

(14.1)%

(5.5)% (8.8)%

(12.2)%

Jan 15 Feb 15 Mar 15 Apr 15 May 15 June 15 6M2015

Aeroflot Group Total Market (incl. Foreign Airlines)

Total Market excl. Aeroflot Group

31.2%

11.4%

9.0% 9.0%

4.4%

17.4%

17.5%

37.0%

12.0% 9.7%

7.2%

4.7%

14.6%

14.9%

Aeroflot Group Market Position

• Continuing growth in the number of passengers of Aeroflot Group despite unfavourable macroeconomic situation

• Aeroflot Group market share expansion amid domestic competitor weakness and foreign carriers scaling down Russian operations

Source: TCH, Rosaviatsia, Company estimates 1 Based on passenger traffic of both domestic and foreign carriers 2 Growth in number of passengers excluding Sochi destination. Lower l-f-l growth in February 2015 is

associated with 2014 Sochi Olympics impact

Increasing Market Share1 (PAX)

Foreign Airlines

6M 2014 6M 2015

Faster Growth vs. Russian Market1 (PAX)

17.8%2 Y-o-y

Increase in PAX y-o-y (mln)

Increase in Aeroflot Group Passenger Number

+2.2

+0.0

+0.2

(1.8)

(0.0)

(1.7) (0.8)

m PAX, 6M 2015

Other Russian Airlines

+5.8 p.p.

17.9

5.8

4.7

3.5

2.3

7.0 7.2

AeroflotGroup

Transaero S7 Group UTairGroup

UralAirlines

ForeignCarriers

OtherRussianCarriers

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10.3% 8.3% 9.3%

13.0%

6.1% 6.4% 8.7%

(4.6)% (10.9)% (9.1)%

(3.1)% (3.0)% (0.9)%

(4.9)%

(14.0)%

(23.3)% (21.1)%

(13.6)% (8.6)%

(5.1)%

(13.5)%

Jan 15 Feb 15 Mar 15 Apr 15 May 15 June 15 6M2015

Aeroflot Group Russian Carriers Russian Carriers excl. Aeroflot Group

1.1 0.8

1.0 1.1

1.6 1.5

7.0

January February March April May June 6M 2015

23.8%

18.3%

5.3%

52.6%

Transaero

UTAir

Ural Airlines

Other comps

Domestic Carriers Cutting Capacity1 (ASK) Russian Peers Capacity Optimization (ASK phase out)

Capacity Optimization by Russian and Foreign Airlines

• Capacity optimization by key major domestic and foreign players supported by Group’s proactive approach in

capacity management are the key drivers of Aeroflot market share expansion

Source: TCH, Rosaviatsia, Company estimates 1 Based on data for domestic carriers only

Other Russian airlines

Y-o-y 6M 2015 vs. 6M 2014

International Carriers Traffic Dynamics International Peers Capacity Optimization

Regional flights suspension;

Consolidation of flights in DME

Significant reduction of flights to Russian regions

Reduction of flights to Russia by 20%;

Scaling down plans to open new destinations in Russia

Expected reduction of frequencies to Russian destinations

Flights from Hong Kong to Moscow suspended from 1 June

Flights from Bangkok to Moscow suspended from 29 March

New York – Moscow flight frequency reduced;

Moscow destination to be suspended from December 1

Moscow – St. Petersburg flight frequency reduction

London – Moscow flight frequency reduced to one flight daily;

suspension of flights starting from mid-March

Threefold Abu-Dhabi – Moscow flight frequency reduction

(21.3%)

(27.4%)

Y-o-y change in PAX x%

(24.9%) (20.9%)

(3.9%) (22.6%)

(19.6%)

m PAX

11,949 mln ASK phased

out in 6M 2015

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3.4

2.7

1.6 1.5

0.8

UK USA Turkey EU-27 Russia

29.2 32.7

35.4 39.2

46.3

22.9

2010 2011 2012 2013 2014 6M 2015

6.2 7.0

11.5

14.0

17.6

10.3

2010 2011 2012 2013 2014 6M 2015

119.6 114.8 116.5 110.7 102.8

43.4

2010 2011 2012 2013 2014 6M 2015

Growth Potential of Russian Air Transportation Market

• Russian Civil Aviation Market and Aeroflot Group in particular continue to benefit from redistribution of passenger traffic

between air travel and rail Source: TCH, Aeroflot Group, Russian Railways 1 Data as of 2014 2 2025E 3 Pro-forma growth including results of acquired subsidiaries for 12m 2011; growth rate of the indicator in 12M 2012 on a consolidated basis amounted to 65.3%

Russian Market Remains Significantly Underpenetrated Domestic Passenger Traffic (Russian Civil Aviation)

Domestic Long-haul Rail Traffic (Russian Railways)

m PAX

m PAX m PAX

X.X% Growth/decline in PAX, Y-o-Y

(0.0%) (4.0%) (5.0%)

12.0% 8.1%

10.8%

17.9%

26.5% 12.9%

23.7%3

21.7%

Airline PAX per capita per year1

22.6%

1.5%

26.0%

1.22

Domestic Passenger Traffic (Aeroflot Group)

(7.1%)

(6.4%)

33.4%

13.5%

0.3

Domestic PAX per capita

2.1

0.5 0.9 0.3

0.3

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1. Market Update




5. Fleet Overview



8. Appendix

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Successful Multi-branding Strategy

Source: Company data 1 PAX contribution as of 6M 2015. Absolute number of passengers in million in green circle

• Flagship carrier

• Premium product

• High income, middle class, leisure

segment

• Focus on direct and transit routes via

St. Petersburg

• Middle class segment

• Short- and mid-haul direct domestic

routes in the South of Russia


• The Far East airline flying on short-

and mid-haul direct international and

domestic routes


• Strategic review completed

• Leisure segment significantly

reduced

• Short and mid-haul

• Point-to-point budget passenger

carrier

• Moscow

(Sheremetyevo)

• Saint-Petersburg

(Pulkovo)

• Rostov-on-Don,

Krasnodar, Sochi,

Mineralnye Vody

• Vladivostok,

Khabarovsk, Yuzhno-

Sakhalinsk

• Orenburg,

Domodedovo,

Vnukovo (Moscow)

• Vnukovo (Moscow)

67.1%

13.1%

4.1%

2.8%

6.2%

Network/ Scheduled

Regional

Leisure and budget

Low Cost

Business Model Focus Airport PAX Contribution1 Brand

6.7%

12.0

1.1

2.3

0.7

0.5

1.2

100%

17.9

Total PAX (mln) • Multi-brand offering to capture customers in every market segment from premium to low-budget

• Wide geographic coverage of the Russian market

• Additional steps taken to simplify operational structure of regional companies

PAX Growth

(8.3%)

9.3%

7.8%

8.7%

14.0%

(4.2%)

n/a

6M 2015 6M 2015

y-o-y

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40

79

110

178

215 237

283

Dec Jan Feb Mar Apr May June

Description

• Operating from Vnukovo airport

• Regional network comprising

– 15 regular destinations

– 37 routes in the summer schedule (including seasonal)

• Fleet of 12 Boeing 737-800 NG (189 seats per plane)

Status

• December 2014 - First flight performed from Moscow to Volgograd

• March 2015 - Seasonal summer route announcement

• April 2015 - Pobeda becomes Top-10 airline in Russia

• June 2015 - Cumulated PAX reached 1 mln

2018

Targets

• c. 10m passengers

• 40 aircraft

• 47 routes (including CIS and international routes)

6M 2015 Route Operational Data

Overview of Pobeda Pobeda’s Network

• Pobeda, the only Russian LCC, is a timely value proposition to cost conscious passengers

• Recently launched, the company has been demonstrating solid growth and attracting substantial customer attention

Source: Company data

Low Cost Carrier ‒ Pobeda

Monthly Operating Results

Surgut

MoscowPerm

Tumen

Ekaterinburg

Samara

Kazan

BelgorodVolgograd

Makhachkala

Nizhnevartovsk

Vladikavkaz

Astrakhan

Arkhangelsk

Sochi

Gelenzhik

30 Anapa

Omsk

Moscow

Surgut

72

72

60

64 98

65 30

40

4

30

35

125 30

9

8

4

5

34

69

5

4

5 Kazan

Ufa

Rostov

Magnitogorsk

Ulyanovsk

Perm Ekaterinburg

Kirov

Chelyabinsk

Khanty-Mansiysk

Belgorod

Volgograd

Tyumen

Routes from Moscow Routes from Sochi Routes From Anapa

Frequency per Month (one-way) #

62% 76% 77% 83% 82% 81% 82%

thd PAX Seat Load Factor, %

Regular routes88.6%

Sochi and

Anapa

summer routes11.4%

Top 5 routes of the airline, thd PAX

170

106

102

88

87

Yekaterinburg

Volgograd

Perm

Ufa

Tumen

PAX by regular and seasonal routes, %

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This map is saved in Dealworks folder 1873584-001.pptx

Aeroflot routes

Rossiya routes

Donavia routes

Aurora routes

Orenair routes

Guangzhou

Simferopol Anapa

Abakan

Sochi

Arkhangelsk

Astrakhan

Chita Irkutsk

Kaliningrad Krasnoyarsk

St. Petersburg Nizhnevartovsk

Novy Urengoy

Omsk

Surgut

Ekaterinburg

Tyumen Tomsk

Yu. Sakhalinsk

Volgograd

Bishkek

Baku

Kiev

Karaganda

Minsk

Odessa

Beirut

Dubai

Teheran

Tel Aviv Cairo

Bangkok

Deli

Hanoi Hong Kong

Phuket

Male

Shanghai

Ho Chi Minh

Ulaanbaatar

Almaty

Stockholm

Barcelona

Paris

Dusseldorf

Yerevan

Geneva

Hamburg

Larnaca

Milan

Nice

Prague

Syktyvkar

Samarkand

Berlin Astana

Vienna Rostov

Vladivostok

Tokyo

Beijing

Busan

Harbin

Magadan

Murmansk

Rome

MOSCOW

Yakutsk

P. Kamchatsky

Antalya

Tivat Varna

Khudzhand

Blagoveshchensk

Istanbul

Havana

Washington New York

Los Angeles

Miami

Seoul

10.2

8.0

13.5

10.8

5.8

11.2

9.2

13.411.8

6.5

Scheduled International Domestic Medium-haul Long-haul

6M 2014 6M 2015

Average Scheduled Flight Frequency per Route2

• Key focus on network quality, i.e. frequencies and connectivity, alongside with intelligent growth in destination number

• Aeroflot Group is operating flights to 142 unique destinations in 53 countries (in summer 2015 schedule)

• During 6M 2015 Aeroflot continued to develop its network adding new regular destinations in Russia (Murmansk, Arkhangelsk, Voronezh) and Samarkand (CIS)

Aeroflot Group Network

(6M 2015/2014)

# of Flights Evolution by Region1 Geographic Network – Summer 2015 Schedule

10.2%

15.9%

(0.7%)

9.3%

12.1%

Note: 1 Scheduled flights of Aeroflot Group; 2 Average weekly frequency per route

This map is saved in Dealworks folder 1873584-001.pptx

Tenerife

Stuttgart

Amsterdam

Malaga

Stockholm

Athens Antalya

Barcelona

Belgrade

Bologna

Brussels

Budapest Paris

Copenhagen

Dresden

Rome

Frankfurt

Geneva

Hamburg

Helsinki

Heraklion

Istanbul

Larnaca

London

Madrid

Munich

Milan Nice

Oslo

Bucharest

Prague

Riga

Thessaloniki

Sofia Split

Berlin

Tbilisi

Tivat

Tallinn

Venice

Vienna

Vilnius

Warsaw

Zagreb Zurich

MOSCOW

Dusseldorf

12.5 %

(2.1)%

(0.1)%

(28.1)%

6.6 %

4.9 %

21.4 %

Total

Middle East and Africa

CIS

North and Central America

Asia

Europe

Russia

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10.6% 11.6% 11.8% 15.3%

15.0% 16.0% 16.7% 16.0%

7.1% 7.9%

10.7% 11.6%

2012 2013 2014 1H 2015Domestic - DomesticInternational - Domestic / Domestic - InternationalInternational - International

Connectivity ratio

Aeroflot is Uniquely Positioned to Capture Growing Transit

Passenger Flows

Source: Company data, IMF, Eurostat, RITA, Russian State Statistics Service, Rosaviatsia, Airbus Global Market Forecast 2014-2033 1 Data for PJSC “Aeroflot” own flights

Share of Transit of Aeroflot airline in Sheremetyevo

42.9% 39.2% 32.7%

Moscow

Beijing

Seoul

Shanghai

Erevan

Tel Aviv

Kiev

London

Rome New York

Los Angeles

Hanoi

Paris

Berlin

Aeroflot’s top-10 transit routes in terms of PAX, 6M 2015

Prague Milano

Average weekly frequency per route

9.5%

8.9%

CAGR

2012-2014

5.6%

Increasing Frequency of Flights1 Improves

Connectivity…

Well Positioned to Capture Profitable Transit Flows

on Key Global Routes…

…and Supports Aeroflot’s Transit Traffic Growth in

Sheremetyevo

… Resulted in Increased Traffic Turnover with Key

Destinations

To/from Asia To/from Europe

35.5%

2.02.2 2.3

1.11.3

2012 2013 2014 6M2014

6M2015

6.57.2 7.6

3.5 3.7

2012 2013 2014 6M2014

6M2015

Total Group’s traffic on scheduled flights, m PAX

• Aeroflot is the only Russian airline that is able to benefit from the growing passenger flows between Europe and Asia

• Tactical increase in Europe-Asia transit supports traffic on Aeroflot’s international routes, promotes image of Aeroflot as a modern carrier with young fleet and quality service and may become additional contributor to the long-term strategy execution

•

9.7 10.7

11.5 12.4

18.2 19.3

20.3 21.9

12.0 13.2

14.4 15.7

11.0x 12.7x 13.5x 13.9x

2012 2013 2014 6М 2015

International

Domestic

Combined

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Improved network convenience

(frequencies up by 10.2%)

Balanced global network

and strategic partnerships

based on the hub in

Sheremetyevo

• Diversified network balanced between the regions with different demand drivers

• The only Russian airline to capture selected profitable transit flows on key global

routes via hub in Sheremetyevo

• Partnerships and JVs with international airlines, membership in SkyTeam

Increased number of international

transit passengers supporting load

factors and contributing to Group’s

revenue growth

Opportune Time for Aeroflot

• Group’s offering covers various price segments from up-scale to low budget

economy

• Pobeda, the only domestic LCC currently in Russia, is a timely value proposition

to cost conscious passengers - recently launched, the company has been

demonstrating solid growth and attracting substantial customer attention

Diversified product

offering

High quality service and

reliable operations

Efficient operating model

underpinned by thorough

cost management

• Substantial savings in fuel and maintenance costs as a result of young fleet

• Cost control programs targeting higher fuel efficiency

• High labour productivity

• Extremely efficient fleet strategy: five major aircraft types for the Group working

in different market segments is unmatched anywhere in the world.

• Young western-built fleet easily transferable from one route to another

• High quality service recognized by numerous international awards and reliable

operations support customer retention

• Tourists switch to self-booking and to regular airlines after turmoil in the tour

operators industry

1

2

3

4

Aeroflot was able to transform complicated environment into growth factor and significantly increased market share.

Competitive Strengths Description 6M’15 Results Checklist

Increased market share both on domestic and international routes

Strong PAX growth of Aeroflot

domestically and internationally

Pobeda becomes Top-10

airline in Russia

Orenair demonstrates

improving trends in operational

results

Aeroflot - Best Airline in Eastern

Europe 2015 (by Skytrax for the

4th time)

Continued phase-out of

outdated aircraft in the fleet

Double digit growth of yields

and RASK

Manageable growth of the

operating costs despite high

pressure from the FX

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1. Market Update




5. Fleet Overview



8. Appendix

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Jan Feb Mar Apr May Jun Jul Aug Sep

8.5 7.8

8.8 8.5

9.9 10.6 11.3 11.3

10.6

9.4 8.4

9.6 9.6 10.5

11.3 11.9 12.0 11.2


6.2 5.6

6.5 6.6 7.3

8.6

9.8 9.8

8.6

6.8 6.3

7.2 7.2 7.9

9.2

10.3 10.5

9.1


2.3 2.22.5 2.5

2.9

3.43.8 3.8

3.3

2.72.4

2.8 2.93.3

3.7

4.2 4.3

3.7


Monthly Seat Load Factor (%) Monthly ASK (bn ask)

9M 2015: LF 79.3%, increase of 0.1 p.p. September 2015: LF 81.3%, increase of 0.4 p.p.

9M 2015: +7.6% Y-o-Y September 2015: +5.8% Y-o-Y

Aeroflot Group YTD Monthly Operating Results

• Passenger traffic growth of 13.3% in 9M 2015 • Moderate growth of ASK (7.6%) and RPK (7.7%) impacted by restructuring of fleet and network optimization at subsidiaries level • Load factor of 79.3% in 9M 2015 supported by stable demand for the Group’s air transportation services

17.7% 13.5% 14.3% 15.1% 10.5% 10.6% 9.6% 8.3%

10.3% 8.3%

9.3% 13.0%

0.1

1.6 0.2 (3.2)


Monthly Passenger Traffic (m PAX) Monthly Passenger Turnover (bn pkm)


72.5% 74.3% 74.8% 74.4%

2014 2015 Seat load factor in respective period of 2015

% Y-o-Y increase 2014 2015 p.p. Y-o-y change in seat load factor

%

14.1% 7.9%

6.1%

75.7%

1.3

10.6% 6.3%

6.4%

81.1%

(0.1)

10.6% 13.0% 6.0% 6.8%

5.6% 6.0%

0.3 0.7

86.9% 87.4%

13.3% 6.3%

5.8%

81.3%

0.4

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• Strong double-digit PAX growth on domestic market throughout the year on the back of increasing capacity

• Relatively stable seat-load factor despite softer demand for international travel as a result of intelligent capacity management

• Stronger performance of Aeroflot airline compared to Aeroflot Group on international markets

Operating Data – Q3 & 9M 2015

Indicator Unit

Aeroflot airline Aeroflot Group

Q3

2014

Q3

2015 Y-o-Y

9M

2014

9M

2015 Y-o-Y

Q3

2014

Q3

2015 Y-o-Y

9M

2014

9M

2015 Y-o-Y

Passenger Traffic th PAX 6,871 7,689 11.9% 17,833 19,669 10.3% 10,865 12,199 12.3% 26,531 30,054 13.3%

International Routes th PAX 3,494 3,836 9.8% 9,412 10,193 8.3% 5,339 4,716 (11.7%) 13,287 12,274 (7.6%)

Domestic Routes th PAX 3,377 3,852 14.1% 8,420 9,476 12.5% 5,527 7,483 35.4% 13,244 17,779 34.2%

Passenger Turnover m pkm 19,557 21,705 11.0% 50,728 55,871 10.1% 28,181 29,975 6.4% 69,109 74,453 7.7%

International Routes m pkm 11,982 13,061 9.0% 32,187 35,302 9.7% 16,945 15,165 (10.5%) 42,732 40,184 (6.0%)

Domestic Routes m pkm 7,576 8,645 14.1% 18,541 20,570 10.9% 11,236 14,810 31.8% 26,377 34,270 29.9%

Passenger Capacity m ASK 23,094 25,231 9.3% 63,844 69,650 9.1% 33,231 35,152 5.8% 87,298 93,941 7.6%

International Routes m ASK 14,583 15,386 5.5% 41,648 44,502 6.9% 20,478 17,927 (12.5%) 55,037 50,934 (7.5%)

Domestic Routes m ASK 8,512 9,845 15.7% 22,196 25,148 13.3% 12,754 17,225 35.1% 32,260 43,007 33.3%

Seat Load Factor % 84.7% 86.0% 1.3 p.p. 79.5% 80.2% 0.7 p.p. 84.8% 85.3% 0.5 p.p. 79.2% 79.3% 0.1 p.p.

International Routes % 82.2% 84.9% 2.7 p.p. 77.3% 79.3% 2.0 p.p. 82.8% 84.6% 1.8 p.p. 77.6% 78.9% 1.3 p.p.

Domestic Routes % 89.0% 87.8% (1.2 p.p.) 83.5% 81.8% (1.7 p.p.) 88.1% 86.0% (2.1 p.p.) 81.8% 79.7% (2.1 p.p.)

Tonne-Kilometres m tkm 1,928 2,094 8.6% 5,042 5,465 8.4% 2,716 2,848 4.9% 6,725 7,169 6.6%

International Routes m tkm 1,171 1,256 7.3% 3,173 3,443 8.5% 1,620 1,447 (10.7%) 4,128 3,886 (5.8%)

Domestic Routes m tkm 758 838 10.6% 1,868 2,023 8.3% 1,096 1,401 27.9% 2,597 3,282 26.4%

Flight Hours hours 146,603 157,477 7.4% 412,797 443,557 7.5% 229,893 237,905 3.5% 613,324 649,891 6.0%

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Revenue Analysis

1 Data presented based on management accounting 2 Data presented based on management accounting for Aeroflot airline and routes of subsidiary airlines under commercial management of Aeroflot

6M 2014 6M 2015 Change

Russia 42,965 57,422 33.6%

Europe 30,855 36,794 19.2%

Asia 15,378 24,381 58.5%

CIS 7,359 9,076 23.3%

Americas 7,665 8,357 9.0%

Middle East 6,599 8,056 22.1%

Total 110,823 144,087 30.0%

6M 2015

6M 2015

Traffic Revenue Breakdown by Type

Scheduled Traffic Revenue Breakdown

Revenue from Scheduled Passengers (RUBm)1

• In H1 2015 revenue from scheduled passengers grew by 30.0% on the back of revenue growth across all regions

• Key drivers of revenue growth are Russian, European, Asian markets

by point of sale2 by region

Sheduled Passenger

Flights95.7%

Charter Passenger

Flights1.4%

Cargo2.9%

Russia39.9%

Europe25.5%

Asia16.9%

Americas5.8%CIS

6.3%

Middle East5.6%

On-line23.5%

Call center and

ow n branches

4.0%

Sales in Russia

41.7%

Sales abroad

30.9%

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2.933.29 3.34

6M 2014 6M 2015 6M 2015(Excluding Pobeda)

Scheduled Flights Revenue Units

• Active revenue management strategy translates into gradual increase in yields

• Positive impact of RUB devaluation and subsequent increase in RUB yields for inbound and transit routes

• Negative impact of EUR-denominated fare reduction for outbound flights from Russia is being gradually eliminated

• Domestic yields are affected by aggressive pricing strategy of domestic competitors 1 Data presented based on management accounting

Traffic Yield: PAX Revenue / RPK (RUB / RPK) Traffic RASK: PAX Revenue / ASK (RUB / ASK)

6M 2015

Yield: PAX Revenue / RPK (RUB / RPK)1 RASK: PAX Revenue / ASK (RUB / ASK)1

13.8%

2.212.48 2.52

6M 2014 6M 2015 6M 2015(Excluding Pobeda)

6M 2015

12.4% 13.9%

6M 2015 6M 2015

2.993.55

International

2.85 2.95

Domestic

3.05

Domestic(excluding Pobeda)

18.7% 3.7% 7.0%

2.21

2.69

International

2.21 2.23

Domestic

2.29

Domestic(excluding Pobeda)

21.6%

0.7% 3.3%

12.0%

x.x% x.x% 2014 2015 Y-o-Y increase

(excluding Pobeda) (excluding Pobeda)

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4.1

4.3

4.4

4.5

4.8

5.2

5.5

5.5

5.5

5.6

5.7

5.8

5.9

6.0

6.0

6.1

6.2

6.5

9.0

11.1

11.3

11.6

12.6

13.4

16.5

17.0

Azul

Hainan Airlines

Lion Air

Garuda Indonesia

Sichuan Airlines

China Eastern Airlines

Qatar Airways

Republic Airlines

Xiamen Airlines

Etihad Airways

Virgin Australia

Shenzhen Airlines

Air China

Jet Airways

easyJet

Turkish Airlines (THY)

Emirates Airline

KLM Royal Dutch Airlines

Lufthansa

Air France

American Airlines

British Airways

United Airlines

Transaero Airlines

Delta Airlines

109 125 140 150 161

5.3 5.2 5.2

4.1 4.3

2011 2012 2013 2014 6M 2015

Aircraft Average Age

209 222 232 251 258

10.4

8.8 7.7

7.0 6.5

2011 2012 2013 2014 6M 2015

Aircraft Average Age

• Aeroflot operates one of the youngest fleets in the industry among airlines with active fleet of 100+ aircraft

• Aeroflot achieved significant progress in fleet renewal both for Aeroflot airline and for the Group

Aeroflot Group Fleet in Operation 1

Aeroflot Airline Fleet in Operation 1

Average Age of the Fleet 2

1 Excludes planes out of operation 2 Average Fleet Age of Selected Airlines with Active Fleet of 100+ Aircraft According to ACAS Statistics Excluding Aeroflot (as of June 2015) excluding planes out of operation 3 Predominantly regional aircraft

Aeroflot Group Fleet Overview

3

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Aeroflot Group Fleet Structure

• Continued renewal of fleet, replacing older aircraft with modern fuel-efficient aircraft

• Disciplined approach to adding new capacity to the market

1 Excluding 1 An-24 aircraft , 1 IL-96 (as of 30 June 2015 Group owned 1 IL-96 aircraft; 5 aircraft as of 31 December 2014; 6 aircraft as of 31 December 2013) and 3 DHC-8 (as of 30 June 2015 these aircraft were in the process of commissioning)

Type Aeroflot Subsidiaries Financial

Lease

Operating

Lease

Total as of

30-Jun-2015

Total as of

31-Dec-2014

Change vs.

31-Dec-2014

Lo

ng

-hau

l

Boeing 767 - 3 - 3 3 3 -

Airbus A330 22 - 8 14 22 22 -

Boeing 777 13 3 10 6 16 13 3

Total 35 6 18 23 41 38 3

Med

ium

-hau

l

Airbus A319 7 33 13 27 40 39 1

Airbus A320 63 11 1 73 74 75 (1)

Airbus A321 26 - 21 5 26 26 -

Boeing 737 10 32 2 40 42 43 (1)

Total 106 76 37 145 182 183 (1)

Sh

ort

-hau

l

DHC 8 - 7 - 7 7 7 -

DHC 6 - 2 - 2 2 2 -

An 148 - 6 6 - 6 6 -

SSJ 100 20 - - 20 20 16 4

Total 20 15 6 29 35 31 4

Total fleet1 161 97 61 197 258 252 6

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Type of Aircraft Delivered during 6M 2015 H2 2015 2016 2017 2018 2019 - 2024

Long-haul 3 - 2 1 5 17

B777 3 - 2 1 - -

A350 - - - - 5 17

Medium-haul 9 5 24 32 23 -

A319 1 - - - - -

A320 - - 9 11 10 -

A321 - - 7 8 4 -

B737 8 5 8 13 9 -

Short-haul 4 9 14 10 - -

SSJ100 4 8 12 10 - -

DHC-8 - 1 2 - - -

Total1 16 14 40 43 28 17

Aeroflot Group Fleet Order and Phase-Out Schedule

• Net addition of two aircraft in 6M 2015

• Further progress in rescheduling deliveries for long-haul and medium haul aircraft in conjunction with adjustments in the Group’s

strategy

Total Aircraft Delivery Schedule in Accordance with Existing Contracts

Aircraft Phase-Out Schedule in Accordance with Existing Contracts

Type of Aircraft Phased out during 6M 2015 H2 2015 2016 2017 2018 2019 - 2024

Long-haul 4 - 1 2 3 22

B767 - - - 1 2 -

B777 - - 1 1 1 -

A330 - - - - - 22

Il-96 4 - - - - -

Medium-haul 10 5 15 13 29 73

A319 - 4 - 6 7 23

A320 1 - 6 3 17 30

A321 - - 3 - 4 14

B737 9 1 6 4 1 6

Short-haul - 3 1 1 1 11

DHC-8 - 3 1 1 1 1

SSJ100 - - - - - 10

Total 14 8 17 16 33 106

1 Excluding 3 DHC-8 (as of 30 June 2015 these aircraft were in the process of commissioning)

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8. Appendix

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RUBm

(where applicable) 6M 2014 6M 2015 Change

Revenue 140,281 176,467 25.8 %

EBITDAR1 16,656 33,252 99.6 %

EBITDAR1 margin 11.9 % 18.8 % 6.9p.p.

EBITDA 5,029 13,311 >2x

EBITDA margin 3.6 % 7.5 % 3.9p.p.

Operating profit/(loss) (1,384) 5,866 n/a

Operating margin neg. margin 3.3% n/a

Net loss (1,905) (3,541) n/a

Net margin neg. margin neg. margin n/a

Net income adjusted for NRE2 375 3,414 >9x

Adjusted net income margin 0.3 % 1.9 % 1.6p.p.

Financial Highlights

• Revenue growth driven by expanding passenger traffic, active revenue management and positive impact from currency devaluation.

• Increase in EBITDAR and EBITDA margins in 6M 2015 y-o-y on the back of revenue growth and strict effective cost control.

1 EBITDAR = EBITDA + operating lease expenses; 2 Non-recurring expenses in 2015 include pre-term return of aircraft at Orenair and Rossiya airlines, fixed assets write off at Vladavia, derivatives and FX effects

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140,281

176,467

9,718

30,904 (4,436)

6M 2014 Volume Currency Pricing* 6M 2015

Revenue Analysis

• Positive contribution of volume and RUB devaluation to revenue growth was partially offset by softer fare policy in hard

currency terms in the volatile macro environment

RU

Bm

* Pricing factor includes other factors which influenced revenue growth

Net positive impact of RUB 26,468m

25.8%

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% in Total Operating

Expense

Operating Expense

(RUB million If not stated otherwise) 6M 2014 6M 2015 Change

Change

ex. FX & NRE

26.2% Fuel 40,236 44,714 11.1 % (19.7)%

Opex (ex. Fuel) 101,429 125,887 24.1 % 5.3 %

20.2% Aircraft, Traffic and Passenger Servicing 27,714 34,516 24.5 % 8.0 %

16.0% Staff 24,305 27,235 12.1 % 9.9 %

11.7% Operating Lease 11,627 19,941 71.5 % 14.9 %

7.7% Maintenance 9,268 13,098 41.3 % 0.3 %

6.7% SG&A1 8,975 11,479 27.9 % 17.5 %

4.4% D&A and Customs Duties 6,414 7,445 16.1 % 16.1 %

7.1% Other Expenses2 13,126 12,173 (7.3)% (33.4)%

100.0% Total Opex 141,665 170,601 20.4 % (1.9) %

Cost Analysis

• In 6M 2015 operating costs were significantly impacted by expansion of operations and RUB depreciation which mostly

affected fuel expenses, operating lease expense, maintenance and aircraft, traffic and passenger servicing costs

1 Includes sales and marketing expenses and administration and general expenses 2 Other expenses include VAT under code-sharing agreement with Rossiya Airlines and fuel excise reimbursement during 6M 2015

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0.01 0.02 0.05 0.07

0.12

0.01 0.03 (0.03)

0.53 0.04

2.62

2.90

2.33

2.62

CASK 6M2014

Staff Fuel Maintenance Air, Traffic andPAX

OperatingLease

D&A and CD* Admin & Sales& Marketing

Other Costs(ex. NRE**)

CASK 6M2015

FX NRE** CASK 6M2015 ex. FXand NRE**

CASK 6M2014

Group Unit Costs

• Cost per ASK increased by 10.8% from RUB 2.62 in 6M 2014 to RUB 2.90 in 6M2015 on the back of operating expenses increase

due to negative FX effects

• Efficient CASK management during the reporting period (net of FX) * Customs duties ** Non-recurring expenses include pre-term return of aircraft at Orenair and Rossiya Airlines, fixed assets write off at Vladavia

Operating Expense 6M 2014 6M 2015 Change

Fuel 0.74 0.76 2.2 %

Opex (ex. Fuel): 1.88 2.14 14.1 %

Aircraft, Traffic and Passenger Servicing 0.51 0.59 14.5 %

Staff 0.45 0.46 3.1 %

Operating Lease 0.22 0.34 57.7 %

Maintenance 0.17 0.22 30.0 %

SG&A 0.17 0.20 17.6 %

D&A and Customs Duties 0.12 0.13 6.7 %

Other Expenses 0.24 0.21 (14.7)%

Total Opex 2.62 2.90 10.8 %

Cost per ASK (RUB)

(19.7)% 10.8%

(11.1)%

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Effective Cost Management and Productivity Gains

• Aeroflot is achieving efficiency gains in fuel costs as new aircraft are put into operation, while old and less fuel-efficient ones

are in the process of phase out

• Significant improvement in labour productivity has resulted in increasing PAX traffic per employee

Flight Hours

7.4%

Fuel Consumption per ASK Fuel Consumption per TKM

(2.0 %) (2.7%)

383

412

6M 2014 6M 2015

23.7 23.2

6M 2014 6M 2015

197.8 192.4

6M 2014 6M 2015

PAX Traffic Revenue / Avg. Airlines Headcount PAX Traffic / Avg. Airlines Headcount

4,425

5,238

6M 2014 6M 2015

569 621

6M 2014 6M 2015

9.1% 18.4%

(th hours) (gr/ASK) (gr/TKM)

(RUB ‘000 per employee) (passengers per employee)

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5,029

9,718 (4,436)

30,904 (31,448)

7,907

(2,405)

(2,208) (1,729)

(1,569)

3,547

13,311

2,206

15,517

EB

ITD

A 6

M 2

01

4

Volu

me

Pricin

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FX

be

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FX

dra

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Sta

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**

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5

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E**

*

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BIT

DA

6M

201

5

(RUBm)

EBITDA Evolution

∑=0

Net FX

∑=(544) RUBm

* Pricing and other factors

** Excluding currency impact

*** Non-recurring expenses include pre-term return of aircraft at Orenair and Rossiya airlines, fixed assets write off at Vladavia

• FX impact on operating costs was almost offset by positive contribution of FX change to revenue

• Net of FX effect decrease in fuel price offset the increase in key operating costs

• Key driver of EBITDA increase is the growth in size and scale of operations and other operating income

Net effect Net volume and price

∑=5,282 RUBm

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(1,384)

9,718 (4,436)

30,904 (31,448)

7,907

(2,405)

(2,208) (1,729)

(1,031) (1,569)

3,547

5,866

2,206

8,072

Op

era

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201

5

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E**

**

Adju

ste

d O

pe

rating

Incom

e 6

M 2

01

5

Operating Income Evolution

(RUBm)

Net effect

∑=(1,035) RUBm

Net FX

∑=(544) RUBm

* Pricing and other factors

** Excluding currency impact

*** Custom Duties

**** Non-recurring expenses include pre-term return of aircraft at Orenair and Rossiya Airlines, fixed assets write off at Vladavia

• FX impact on operating costs was almost offset by positive contribution of FX change to revenue

• Net of FX effect decrease in fuel price almost offset the increase in key operating costs

• Key driver of operating income increase is the growth in size and scale of operation and other operating income

Net volume and price

∑=5,282 RUBm

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6M Adjusted Operating Income Build-Up (RUBm)

Adjusted Operating and Net Income Analysis

• Aeroflot Group remained profitable on net income basis adjusted for FX fluctuations related PDP refund and non-recurring

provisions

6M Adjusted Net Income Build-Up (RUBm)

5,866

8,072

1,639 567

Operating Income 6M 2015 Pre-term return of aircraft at Orenair andRossiya Airlines

FA write off at Vladavia Adjusted Operating Income 6M 2015

(3,541)

3,414

(5,351)

10,154

1,585 567

Net Loss 6M 2015 Derivatives Pre-term return of aircraft atOrenair and Rossiya

Airlines

FA write off at Vladavia Forex Adjusted Net Income 6M2015

* Reserves on pre-term return of aircraft at Orenair and Rossiya airline

** Mostly land and buildings

*** Reserves on pre-term return of aircraft at Orenair and Rossiya airline and positive forex difference

**** Positive forex difference mostly related to PDP refund on Boeing

* **

***

** ****

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Derivatives and Hedging Result Effect on Statement of Profit

or Loss and Statement of Comprehensive Income

RUBm 6M 2015

Statement of Profit or Loss

Financial income 7,183

Foreign exchange gain 5,404

Interest income on bank deposits 1,708

Other finance income 71

Financial cost (7,441)

Interest expenses (3,419)

Loss on change in fair value of derivatives (1,387)

Realised loss on derivatives (2,621)

Other finance costs (14)

Hedging result (8,848)

Realised loss on derivatives (7,740)

Ineffective portion of fuel hedging 1,595

Effect from finance lease liabilities hedging (2,703)

Other Comprehensive Profit

Profit on change in fair value of derivatives 6,211

Effect from finance lease liabilities hedging 4,135

P/L Other

Comprehensive

Profit Instrument

Change in

Fair Value Ineffective

Portion Actual

Cost

Currency

options (962) - - -

Fuel options (425) 1,595 (10,361) 4,186

Swap - - - 2,025

Lease (2,703) 4,135

Total (1,387) 1,595 (13,064) 10,346

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1. Market Update




5. Fleet Overview



8. Appendix

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8,435 17,106 16,632 16,685

78,959

2015 2016 2017 2018 2019+

RUBm 31-Dec-2014 30-Jun-2015 Change

Borrowings 24,203 31,190 28.9%

Finance Lease Liabilities 149,278 137,817 (7.7)%

Pension Liabilities 659 709 7.7%

Customs Duties 169 - n/a

Total Debt 174,309 169,716 (2.6)%

Cash and Short Term

Investments 27,508 50,067 82.0%

Net Debt 146,800 119,649 (18.5)%

Leverage and Liquidity

• Total Debt decreased by 2.6% mainly due to revaluation of finance lease obligations

• Cash position of RUB 50.1 billion and undrawn credit lines of RUB 23.1 billion 1 Net debt does not include capitalised operating lease expenses, based on annualized EBITDA 2 Not including interest; future payments in dollars converted into roubles at exchange rate of 55.524 RUB per USD

Debt Profile Net Debt / LTM EBITDA¹

Debt breakdown by currency Finance Lease Repayment Schedule (RUBm)2

Borrowings Finance Lease

2.9

4.7

5.9

3.6

30-Jun-2014 30-Sep-2014 31-Dec-2014 30-Jun-2015

RUB 37%

USD 63%

RUB 0.01%

USD 99.99%

30-Jun-2014 30-Sep-2014 31-Dec-2014 30-Jun-2015

75,929 91,806 146,800 119,649

25,964 19,631 24,840 33,122

RUB m

Net Debt

EBITDA 1

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Operating Free Cash Flow

• Strong Operating and Free Cash Flow in 6M 2015

(RUBm)

36.8%

(3,296)

16,097

42,736

36,084

26,379

6,710

3,419

(6,247)

(405)

(5,404)

14,668

26,639

Profit BeforeIncome Tax

D&A InterestExpense

UnrealizedNet FX Loss

Other Adj.Before

WorkingCapital

Changes*

Cash FlowsFrom

OperatingActivitiesBefore

WorkingCapital

Changes

WorkingCapital

Changes andIncome Tax

Net CashFlows FromOperatingActivities

Net CapitalExpenditures

Net Pre-delivery

Payments forAircraft

Free CashFlow 6M 2015

Free CashFlow 6M 2014

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1. Market Update

2. Monthly Traffic Statistics



5. Fleet Overview



8. Appendix

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Aeroflot Airline and Aeroflot Group Operating Results

Indicator

Aeroflot airline Aeroflot Group

Unit 6M

2014

6M

2015 Change

6M

2014

6M

2015 Change

Passenger Traffic th PAX 10,962 11,981 9.3% 15,666 17,855 14.0%

International Routes th PAX 5,918 6,356 7.4% 7,948 7,558 (4.9%)

Domestic Routes th PAX 5,044 5,624 11.5% 7,718 10,297 33.4%

Passenger Turnover m pkm 31,171 34,166 9.6% 40,927 44,479 8.7%

International Routes m pkm 20,205 22,241 10.1% 25,787 25,019 (3.0%)

Domestic Routes m pkm 10,966 11,925 8.7% 15,141 19,460 28.5%

Passenger Capacity m ASK 40,749 44,419 9.0% 54,066 58,789 8.7%

International Routes m ASK 27,065 29,116 7.6% 34,560 33,007 (4.5%)

Domestic Routes m ASK 13,684 15,302 11.8% 19,507 25,782 32.2%

Seat Load Factor % 76.5% 76.9% 0.4 p.p. 75.7% 75.7% (0.0) p.p.

International Routes % 74.7% 76.4% 1.7 p.p. 74.6% 75.8% 1.2 p.p.

Domestic Routes % 80.1% 77.9% (2.2) p.p. 77.6% 75.5% (2.1 p.p.)

Tonne-Kilometres m tkm 3,113 3,371 8.3% 4,009 4,320 7.8%

International Routes m tkm 2,003 2,186 9.2% 2,508 2,439 (2.7%)

Domestic Routes m tkm 1,111 1,185 6.7% 1,501 1,881 25.3%

Flight Hours hours 266,194 286,081 7.5% 383,431 411,986 7.4%

• Continued double-digit PAX growth on domestic market in 6M 2015 on the back of increasing capacities and strong domestic

demand

• Stronger performance of Aeroflot airline compared to Aeroflot Group on international markets

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6M 2015 Traffic and Capacity Dynamics (Y-o-Y)

• Russian market is the star performer for the second year in row, despite high base of H1 2014

• CIS region operating metrics showed material y-o-y improvements due to the launch of new flights to the region in the last twelve

months

• Performance of North and Central American market is affected by network optimization and closure of commercially inefficient

flights (Toronto, Cancun, Punta Cana)

• PAX growth on European and Asian markets was supported by expanded capacities on selected routes and softening competitive

landscape as well as increased international transit via Aeroflot hub in Sheremetyevo

• Middle Eastern market performance affected by capacity additions across the region and softer demand on flights to Turkey

Source: Data presented based on management accounting for scheduled flights of Aeroflot Group (excluding charter flights)

Americas Russia CIS

Europe Middle East Asia

33.9%28.8%

32.7%

(2.2) p.p.

Passengerscarried

RPK ASK SLF

(6.5)% (6.6)%(10.0)%

2.9 p.p.

Passengerscarried

RPK ASK SLF

1.9 % 2.1 %

(1.3)%

2.5 p.p.

Passengerscarried

RPK ASK SLF

4.9 %

3.6 % 3.4 %

0.1 p.p.

Passengerscarried

RPK ASK SLF(2.2)%

5.5 %

8.6 %

(2.2) p.p.

Passengerscarried

RPK ASK SLF

19.9 % 21.0 %

14.7 %

4.1 p.p.

Passengerscarried

RPK ASK SLF

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Key Operating Data of Subsidiary Airlines

1 According to IFRS, before intercompany eliminations 2 Aeroflot Group consolidated data according to IFRS

Rossiya Orenair Donavia Aurora Vladivostok

Air Pobeda Total

Passenger Traffic, 6M 2015 2,348 1,191 728 506 - 1,102 5,874

‘000 PAX 6M 2014 2,177 1,244 794 466 4.6 19 4,704

Y-o-Y 7.8% (4.2%) (8.3%) 8.7% - - 24.9%

Passenger Turnover, 6M 2015 4,391 2,431 967 836 - 1,688 10,313

m pkm 6M 2014 4,145 3,679 1,134 766 8.1 24 9,756

Y-o-Y 5.9% (33.9%) (14.7%) 9.1% - - 5.7%

Seat Load Factor, %

6M 2015 71.8% 69.1% 69.4% 66.5% - 81.0% 71.8%

6M 2014 72.4% 75.8% 69.1% 72.9% 56.4% 88.6% 73.3%

Y-o-Y (0.6 p.p.) (6.6 p.p.) 0.3 p.p. (6.4 p.p.) - - (1.5 p.p.)

Flight Hours, hours

6M 2015 57,216 23,795 14,204 15,746 - 14,946 125,907

6M 2014 54,810 32,483 16,602 12,969 122 251 117,237

Y-o-Y 4.4% (26.7%) (14.4%) 21.4% - - 7.4%

Revenue1, RUBm 6M 2015 19,765 7,840 5,678 6,319 - 3,329 176,4672

Net Income1, RUBm 6M 2015 159 (3,188) 483 (187) (251) (797) (3,541)2

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Key Financial Data for Aeroflot Group

1 RPK = revenue passenger kilometre. 2 Yield = PAX Traffic Revenue / RPK (PAX Traffic Revenue includes revenue from scheduled and charter flights) . 3 EBITDAR = EBITDA + operating lease expenses. 4 EBITDA = operating income + depreciation & amortisation + customs duties. 5 Net Debt = borrowings + finance lease liabilities + pension liabilities + custom duties – cash and short-term investments.

RUBm, Unless

Otherwise Stated 6M 2014 6M 2015 Y-o-Y

Revenue 140,281 176,467 25.8 %

RPK1 (m pkm) 40,927 44,479 8.7 %

Yield2 (RUB/pkm) 2.88 3.29 14.0 %

EBITDAR3 16,656 33,252 99.6 %

Margin (%) 11.9% 18.8% 6.9p.p.

EBITDA4 5,029 13,311 >2x

Margin (%) 3.6% 7.5% 3.9p.p.

Operating Income / (loss) (1,384) 5,866 n/a

Margin (%) neg. margin 3.3% n/a

Net Income / (loss) (1,905) (3,541) n/a

Margin (%) neg. margin neg. margin n/a

Net Debt5 75,929 119,649 57.6 %

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Income Statement and Statement of Comprehensive Income

RUBm, Unless

Otherwise Stated 6M 2014 6M 2015 Change

Traffic revenue 121,796 150,604 23.7%

Other revenue 18,485 25,863 39.9%

Revenue 140,281 176,467 25.8%

Operating costs, excluding staff costs and depreciation and amortisation (109,009) (139,166) 27.7%

Staff costs (24,304) (27,235) 12.1%

Depreciation and amortisation (5,586) (6,710) 20.1%

Other income and expenses, net (2,766) 2,510 -

Operating costs (141,665) (170,601) 20.4%

Operating profit/(loss) (1,384) 5,866 -

Finance income 2,615 7,183 174.7%

Finance costs (2,434) (7,441) 205.7%

Hedging result - (8,848)

Share of results of associates (2) (56) -

Loss before income tax (1,205) (3,296) 173.5%

Income tax expense (700) (245) (65.0%)

Loss for the period (1,905) (3,541) 85.9%

Other comprehensive profit/(loss) :

Items that may be reclassified subsequently to profit or loss:

Translation from the functional currency to the presentation currency 28 - -

Profit/(loss) on the change in fair value of derivative financial instruments (233) 6,211 -

Effect from hedging revenue with currency liabilities - 4,135 -

Deferred tax related to the profit/(loss) on 65 (2,057) -

Other comprehensive profit/(loss) for the period (140) 8,289 -

TOTAL COMPREHENSIVE PROFIT/(LOSS) FOR THE PERIOD (2,045) 4,748 -

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RUBm, Unless

Otherwise Stated 31-Dec-14 30-Jun-15 Change

ASSETS

Current assets

Cash and cash equivalents 26,547 47,932 80.6%

Accounts receivable and prepayments 56,769 63,289 11.5%

Other current assets 8,897 13,227 48.7%

Total current assets 92,213 124,448 35.0%

Non-current assets

Prepayments for aircraft 29,241 28,524 (2.5%)

Property, plant and equipment 116,044 113,430 (2.3%)

Other non-current assets 40,220 37,735 (6.2%)

Total non-current assets 185,505 179,689 (3.1%)

TOTAL ASSETS 277,718 304,137 9.5%

LIABILITIES AND EQUITY

Current liabilities

Derivative financial instruments 26,312 24,343 (7.5%)

Accounts payable and accrued liabilities 48,952 59,434 21.4%

Unearned traffic revenue 22,469 39,844 77.3%

Finance lease liabilities 16,912 16,984 0.4%

Short-term loans and borrowings and current portion of long-term loans and borrowings 17,343 25,999 49.9%

Other current assets 3,148 8,102 157.4%

Total current liabilities 135,136 174,706 29.3%

Non-current liabilities

Long-term loans and borrowings 6,860 5,192 (24.3%)

Finance lease liabilities 132,366 120,833 (8.7%)

Other non-current liabilities 16,861 12,169 (27.8%)

Total non-current liabilities 156,087 138,194 (11.5%)

TOTAL LIABILITIES 291,223 312,900 7.4%

Equity

Share capital 1,359 1,359 -

Hedge reserve (48,657) (40,368) (17.0%)

Retained earnings 45,584 42,164 (7.5%)

Other items (1,917) (1,917) -

Equity attributable to shareholders of the Company (3,631) 1,238 n/a

Non-controlling interest (9,874) (10,001) 1.3%

TOTAL EQUITY (13,505) (8,763) (35.1%)

TOTAL LIABILITIES AND EQUITY 277,718 304,137 9.5%

Condensed Balance Sheet

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Condensed Cash Flow Statement

Source: Company data

RUBm, Unless

Otherwise Stated 6M 2014 6M 2015 Change

Operating cash flows before working capital changes 7,030 16,097 129.0%

Increase in accounts receivable and prepayments (520) (3,442) 561.9%

Increase in expendable spare parts and inventories (447) (438) (2.0%)

Increase in accounts payable and accrued liabilities 22,051 31,632 43.4%

Total operating cash flows after working capital changes 28,114 43,849 56.0%

Net cash flows from operating activities 26,603 42,736 60.6%

Net cash flows used in from investing activities (28) (7,155) -

Net cash used in financing activities (8,632) (13,715) 58.9%

Net increase in cash and cash equivalents 18,043 21,385 18.5%

Cash and cash equivalents at the end of the period 36,703 47,932 30.6%

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This document has been prepared by PJSC “Aeroflot” (the “Company”). By attending the meeting where the presentation is made, or by reading the

presentation slides, you agree to the following.

This document does not constitute or form part of any advertisement of securities, any offer or invitation to sell or issue or any solicitation of any offer to

purchase or subscribe for, any securities of the Company in any jurisdiction, nor shall it or any part of it nor the fact of its presentation or distribution form

the basis of, or be relied on in connection with, any contract or investment decision.

No reliance may be placed for any purpose whatsoever on the information contained in this document or on assumptions made as to its completeness.

No representation or warranty, express or implied, is given by the Company, its subsidiaries or any of their respective advisers, officers, employees or

agents, as to the accuracy of the information or opinions or for any loss howsoever arising, directly or indirectly, from any use of this presentation or its

contents.

This document may include forward-looking statements. These forward-looking statements include matters that are not historical facts or statements

regarding the Company’s intentions, beliefs or current expectations concerning, among other things, the Company’s results of operations, financial

condition, liquidity, prospects, growth, strategies, and the market in which the Company operates. By their nature, forwarding-looking statements involve

risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. The Company cautions you

that forward-looking statements are not guarantees of future performance and that the Company’s actual results of operations, financial condition and

liquidity and the development of the market in which the Company operates may differ materially from those made in or suggested by the forward-

looking statements contained in this document. The Company does not undertake any obligation to review or confirm expectations or estimates or to

update any forward-looking statements to reflect events that occur or circumstances that arise after the date of this presentation.

Disclaimer

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Address: 119002, Russia, Moscow, Arbat St. 10

E-mail: [email protected]

Website: www.aeroflot.ru

Investor Relations Contacts

Andrey Napolnov, CFA

Head of Investor Relations

Aeroflot Group

Tel: +7 (495) 258-06-86

Mob: +7 (903) 247-78-08

E-mail: [email protected]

mailto:[email protected]

http://www.aeroflot.ru/

mailto:[email protected]

aeroflot group · 2018-11-09 · 232 235 240 182 196 204 0 112 4. revenue and yield 192 59 100 135...

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