I N V E S T O R P R E S E N T AT I O N. June 2018

Transcription

1 A E R O F L O T G R O U P I N V E S T O R P R E S E N T AT I O N June 2018

2 Disclaimer 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 forwardlooking 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. 2

3 Aeroflot Group Q Highlights % % p.p % 11.0 mln 36.6 bn 103 bn 112 bn 10.3 mln 34.5 bn 78.0% 78.5% PAX ASK PASSENGER LOAD FACTOR¹ Revenue (RUB) Q Q In Q1 2018, Aeroflot Group has continued operational development via expanding capacity on the back of opportunities provided by the market. Capacity growth allowed Aeroflot to increase number of passengers transported as well as boost revenues while keeping PLF in the positive territory. ¹ Immaterial deviations throughout the presentation are explained by rounding 3

4 Aeroflot Group Business Seasonality Passenger Traffic Passenger Revenue (Sch. + Charter) Blended yield (Sch. + Charter) Million PAX Billion RUB RUB/RPK Q Q Q Q Q Source: Company data Passenger traffic, million PAX Share of each quarter in 12M 2017 results Q Q Q Q Q % 25% 31% 24% n/m Q Q Q Q Q Passenger revenue, billion RUB Share of each quarter in 12M 2017 results Q Q Q Q Q % 25% 33% 24% n/m Q Q Q Q Q Passenger yield (blended), RUB/RPK Q yield deviation Q Q Q Q Q % (4)% (10)% (4)% - Russian air transportation market shows highly pronounced seasonality which influences quarterly results of Aeroflot Group business. 4

5 1. Market Update 2. Aeroflot Group Overview 3. Aeroflot Group Operating Performance 4. Network and Schedule Overview 5. Fleet Overview 6. Financial Performance 7. Capital Structure and Liquidity 8. Appendix 5

6 Russian Air Transportation Market: Room for Growth Russian Total Passenger Traffic Growth, mln PAX (1) Trips per Capita (2) Notes: (1) Total local and foreign carriers traffic Sources: FAAT, Aeroflot estimates Railways facing increasing competition (5.1)% Total CAGR 4.5% International (1.3)% Domestic 12.4% RZD long-haul rail traffic (mln PAX) (6.9)% (5.0)% 3.6% Domestic Routes International Routes Long-distance rail routes low over 10 mln PAX in the recent 5 years and over 30 mln PAX over a decade 0.8% % Change FY % 11.0% UK USA Turkey Russia (2) Airline PAX per capita per year, as of 2017 Sources: FAAT, Aeroflot estimates from airlines on domestic routes Domestic air traffic (mln PAX) 10.8% 17.9% % 52.6 Despite fast growth of the recent years, Russian airline industry still has promising growth prospects compared to European & US markets x.xx Domestic PAX per capita Domestic air traffic growth at a much higher pace than other means of transportation 7.3% % Russian market is well positioned for long-term growth on the back of still low penetration, additional potential from ongoing structural changes and increasing propensity to travel by air as well as advantageous geographical location. 6

7 Competitive Dynamics Passenger Traffic: Market vs Aeroflot Group Russian Air Transportation Market (million PAX) inc. PAX of Russian and Foreign Carriers and int. transit PAX % 31.7% 10.9% Aeroflot Group (million PAX) 15.4% 22.6 International Routes Domestic Routes 12.9% 15.3% % Q Q Change in Airlines Passenger Numbers mln PAX, Q Aeroflot Group Market Share (PAX) S7 Group Ural Airlines UTair Group Foreign Carriers Increase in PAX million Others Source: TCH, Rosaviatsia, Company estimates / 1 UTair Group includes UTair, Utair-Cargo and Turuhan % % Market Dynamics Net of Aeroflot Group Source: TCH, Company estimates Note: Incl. foreign carriers traffic. 6.6% % % 6.1 Q Q % Total Market 18.1% 37.1% International 22.0% 12.0% Domestic 14.7% Q p.p. Foreign Airlines Q Clean Market Share of Aeroflot Group (Net of Intl.-Intl. Transit Traffic) 42.9% Aeroflot Group 40.3% Other Russian Airlines Aeroflot Group continued to deliver growth on further recovering market increasing PAX by 6.6% with acceleration on both domestic and international routes. 15.9% 13.0% 5.9% 6.8% 12.9% 45.5% 17.9% 13.4% 6.5% 6.9% 12.4% 43.0% 7

8 Continuing Market Recovery Passenger Traffic (Russian and Foreign Carriers) Capacity (Russian and Foreign Carriers) Change in PAX traffic y-o-y, % Change in ASK y-o-y, % 18.6% 25.7% 20.5% 16.4% 12.9% 42.5 % 36.1 % 19.6% 13.0% 21.0% 21.8% 17.2% 14.6% 11.9% 16.9% 16.4% 25.3 % 20.7 % 13.4% 12.2% 7.4% 12.7% 15.3 % 10.8% Q Q Q Q Q International Domestic Total market Source: TCH, Company calculations Capacity (Russian Carriers) (2.5)% Q Q Q Q Q Foreign carriers Russian carriers Source: SRS for foreign carriers, Rosaviatsia for domestic carriers, Company calculations ASK is calculated based on published RPK and PLF data Passenger Load Factor (Russian Carriers) Change in ASK y-o-y, % 33.4% 24.7% 28.8% Change in PLF y-o-y, percentage points % 17.6% 16.4% 16.4% % 5.9% 6.2% (0.3) Q Q Q Q Q International Domestic Source: Rosaviatsia, Company calculations ASK is calculated based on published RPK and PLF data (3.5) Q Q Q Q Q International Domestic Source: Rosaviatsia, Company calculations Quarterly PLF is calculated based on published RPK and PLF data Beginning of 2018 is marked by further market recovery on the back of higher demand in both international and domestic segments. 8

9 1. Market Update 2. Aeroflot Group Overview 3. Aeroflot Group Operating Performance 4. Network and Schedule Overview 5. Fleet Overview 6. Financial Performance 7. Capital Structure and Liquidity 8. Appendix 9

10 Aeroflot Group Multi-Brand Strategy Brand Business Model Focus Airport PAX Contribution 1 PAX Growth Premium Flagship carrier Premium product (4 Stars) High income and middle class Hub and spoke model Moscow (Sheremetyevo) Q % +5.4% M M 2018 Regional and Charter Regional and leisure product Focus on domestic flights Selected international routes, mostly out of VKO airport in Moscow Charter operations Saint-Petersburg (Pulkovo) Moscow (Vnukovo) % (6.7)% M M 2018 Low Cost Short and mid-haul flights Mostly domestic segment, selected international routes Point-to-point carriage Moscow (Vnukovo) % +42.2% M M 2018 Regional / Far-East The Far East airline flying on short- and mid-haul direct international and domestic routes Flights to remote cities (local flights) Vladivostok, Khabarovsk, Yuzhno-Sakhalinsk % +7.8% M M 2018 Simplified multi-brand product offering to capture customers in every market segment: from premium to low-cost. Aeroflot and Pobeda key engines of the Group both increased traffic by approximately 0.4 million PAX 10 1 PAX contribution as of 3M Absolute number of passengers in million in green circle

11 Rossiya Airline: Q1 Highlights Overview of the Initiative Intelligent capacity management to increase efficiency (domestic routes) Mix of Scheduled and Charter Operations PAX, Q PAX, Q Continued growth in international segment backed by leisure demand Launched direct flight from St.Petersburg to London (Gatwick) Charter 24% Charter 26% A-la-carte menu for own flights in VKO Plans to move operations to SVO in 2019 Scheduled 76% Scheduled 74% Passengers: international and domestic (mln PAX) PLF: international and domestic (%) 2,0 (6.7%) 1,9 10.5% 1,4 (13.3%) 1,3 76,8% 5.3 p.p. 82,2% 90,2% 0.7 p.p. 90,9% 68,1% 6.5 p.p. 74,6% 0,5 0,6 Total International Domestic 3M M 2018 Total International Domestic 3M M 2018 Mid-single digit decline in PAX traffic in Q due to efforts to maximize operational and financial efficiency in low season. Plans to catch up with the annual goals during high season. 11

12 Pobeda Airline: Three Full Years of Successful Operations Overview of Pobeda Network Fleet Key features and achievements in Q Goals Operating from Vnukovo airport (3 rd Moscow airport by PAX) Network comprising 62 routes (38 unique for the Group) Additional expansion to international destinations (10 countries) 18 Boeing NG ( ) Plans for 6 more aircraft to be delivered in 2018 Single class cabin 189 seats per plane 1.4 million PAX in Q (+42.2% y-o-y) Record high Q1 PLF of 93.1% (+1.5 p.p. y-o-y) International PPK is 25% of total Pobeda traffic Active development of intra-region flights, and international flights from the regions 45 aircraft c mln PAX Growing Passenger Flows thousand PAX 42.2% Pobeda s Network (Summer 2018) Saint Petersburg Routes from Moscow Routes from St.-Petersburg Routes from Sochi Improving Load Factor PLF, % Alanya Paphos Moscow Cheboksary Kazan Samara Ufa Cologne Leipzig Karlovy Vary Baden-Baden Rostov Volgograd Memmingen Bratislava Astrakhan Bergamo Anapa Venice Nalchik Gelenzhik Nazran Tivat Sochi Makhachkala Girona Pisa Vladikavkaz Istanbul Batumi Tbilisi Reus Gyumri +1.9 p.p. Kaliningrad Larnaca Route from Makhachkala Route from Krasnoyarsk Perm Tyumen Ekaterinburg Nab. Chelny Chelyabinsk Surgut Krasnoyarsk Novosibirsk Ulan-Ude, Irkutsk Routes from Rostov Routes from Ekaterinburg 38.8% 41.6% 46.2% , % 94.2% +2.0 p.p. 91.0% 93.0% +1.5 p.p p.p. 93.1% 92.2% 91.5% 91.6% Jan Feb Mar Q Jan Feb Mar Q Pobeda, the only Russian LCC, is a timely value proposition to cost conscious passengers. 12

13 flights mm pax Infrastructure Expansion to Support Future Growth New Terminal B Highlights New infrastructure objects launched in 2018 Capacity 20 mln PAX (4,200 PAX per hour) Size 110 thd sqm New technologies implemented in the new terminal Connected to terminal E via interteminal tunnels Terminal B Interterminal tunnel Express train Evolution of key operating indicators (max. theoretical capacity) Sheremetyevo development plan Runway-3 Terminal C Warehouse Terminal B Fuel-filling Terminal C-2 Complex Cargo Terminals Annual pax capacity Flights per 55 hour 2 Source: Sheremetyevo press-center, aviation explorer, public sources Note: 1 Actual passenger traffic of According to IATA Methodology Runway-1 Runway-2 Terminal D Terminal F Terminal E Interterminal Tunnel Aeroflot has started transferring domestic flights to the new Terminal B starting from May. During the first stage, expected to finish on 1 June 2018, the Company will transfer 46 return flights to the new terminal. 13

14 1. Market Update 2. Aeroflot Group Overview 3. Aeroflot Group Operating Performance 4. Network and Schedule Overview 5. Fleet Overview 6. Financial Performance 7. Capital Structure and Liquidity 8. Appendix 14

15 Operating Data Q Indicator Unit Aeroflot airline Aeroflot Group Q Q Y-o-Y Q Q Y-o-Y Passenger Traffic th PAX 7,015 7, % 10,302 10, % International Routes th PAX 3,754 3, % 4,578 4, % Domestic Routes th PAX 3,262 3, % 5,724 6, % Passenger Turnover mln pkm 20,059 20, % 26,934 28, % International Routes mln pkm 13,760 14, % 16,531 17, % Domestic Routes mln pkm 6,299 6, % 10,403 11, % Passenger Capacity mln ASK 25,805 27, % 34,510 36, % International Routes mln ASK 17,723 18, % 20,847 22, % Domestic Routes mln ASK 8,082 8, % 13,663 14, % Passenger Load Factor % 77.7% 76.5% (1.2) p.p. 78.0% 78.5% 0.4 p.p. International Routes % 77.6% 75.7% (1.9) p.p. 79.3% 78.1% (1.2) p.p. Domestic Routes % 77.9% 78.2% 0.3 p.p. 76.1% 79.1% 3.0 p.p. Tonne-Kilometres mln tkm 2,031 2, % 2,683 2, % International Routes mln tkm 1,399 1, % 1,650 1, % Domestic Routes mln tkm % 1,032 1, % Revenue Flights flights 55,507 60, % 82,350 88, % International Routes flights 28,029 30, % 33,765 36, % Domestic Routes flights 27,478 29, % 48,585 51, % Flight Hours hours 162, , % 224, , % Strong operating results in Q1 2018: growing PAX flows and PLF on the back of balanced capacity expansion. 15

16 Q Operating Data by Region (Scheduled Routes) Americas Russia CIS 10.6 % 8.6 % 15.4 % 8.0 % 9.4 % 4.8 % 3.3 p.p. (2.5)% (1.2) p.p. (4.8) p.p. Passengers RPK ASK PLF carried Performance of North and Central American market was supported by addition of 3rd frequency to NY and increased ASK to other destinations, which weighted on PLF. Passengers carried RPK ASK PLF Russian market is continuing to show consistent growth in 2018 with strong PLF performance on the back of efficient capacity management. Europe Middle East Asia 8.6 % Passengers carried 9.8 % 12.6 % (1.8) p.p. RPK ASK PLF 3.1 % Passengers carried 2.5 % European market performance benefited from Operating performance of the region significantly launch of additional frequencies to key affected by increased frequencies to Istanbul, destinations and from new destinations opening Antalya and Dubai backed by strong demand to during the last twelve months, putting slight the region pressure on PLF. Source: Data presented based on management accounting for scheduled flights of Aeroflot Group (excluding charter flights) Passengers carried (4.9)% (6.4)% RPK ASK PLF Group KPIs in CIS came under pressure as a result of subsidiaries operating program optimization while Aeroflot airline showed steady growth on all key routes including Kazakhstan. Passenger traffic on key regional destinations stable or trending towards growth (China), higher number of frequencies to Male supportive for overall performance of the region. Strong operating performance on the scheduled routes was partially offset by selective adjustments in network due to internal and external reasons 1.7 % 0.6 p.p. RPK ASK PLF 3.5 % Passengers carried 3.2 % 3.5 % (0.3) p.p. RPK ASK PLF 16

17 1. Market Update 2. Aeroflot Group Overview 3. Aeroflot Group Operating Performance 4. Network and Schedule Overview 5. Fleet Overview 6. Financial Performance 7. Capital Structure and Liquidity 8. Appendix 17

18 Aeroflot Group Network # of Flights Evolution by Region 1 (Q1 2018, y-o-y) Geographic Network Russia Europe Asia North and Central America 2.9 % 3.4 % 7.2 % Los Angeles 15.7 % New York Washington Miami Havana Murmansk Arkhangelsk Salekhard New Urengoy Syktyvkar Khanty Mansiysk Saint Petersburg Surgut Nizhnekamsk Nizhnevartovsk Perm Nizhny Novgorod Ekaterinburg Kemerovo MOSCOW Tyumen Samara Krasnoyarsk Kaliningrad Kazan Omsk Novosibirsk Novokuznetsk Tomsk Hamburg Berlin Voronezh Ufa Chelyabinsk Abakan Minsk Irkutsk Saratov Kostanay Dusseldorf Frankfurt Orenburg Magnitogorsk Astana Barnaul Orly Prague Belgorod Volgograd Aktobe Paris Munich Rostov Atyrau Karaganda Chisinau Ulan Bator Vienna Gelenzhdik Astrakhan Milan Simferopol Stavropol Almaty Nice Rimini Anapa Adler Aktau Shymkent Sochi Bishkek Beijing Barcelona Rome Burgas Makhachkala Tivat Varna Mineral Waters Baku Tashkent Istanbul Yerevan Samarkand Antalya Krasnodar Dalian Teheran Larnaca Beirut Tel Aviv Delhi Dubai Hanoi Guangzhou Hong Kong Harbin Seoul Busan Shanghai Yakutsk Khabarovsk Vladivostok Yu. Sakhalinsk Tokyo Magadan P. Kamchatsky CIS 4.4 % Bangkok Phuket Ho Chi Minh City Middle East Total 4.7 % 13.5 % Male Aeroflot routes Rossiya routes Aurora routes Average Scheduled Flight Frequency per Route (Aeroflot Group ex-pobeda) Increase in Group frequencies by 4.4% was predominantly supported by expansion of the number of frequencies in international segment (+7.5%) and in the sector of medium-haul routes (+4.7%). Q Q % % % % % 8.3 Stockholm Oslo Helsinki Tallinn Riga Copenhagen MOSCOW Hamburg Kaunas Minsk Amsterdam Hannover Berlin London Dusseldorf Warsaw Brussels Dresden Frankfurt Prague Paris Stuttgart Vienna Chisinau Zurich Munich Budapest Geneva Lyon Milan Venice Belgrade Nice Bologna Bucharest Split Zagreb Barcelona Sofia Rome Tivat Madrid Thessaloniki Istanbul Tbilisi Valencia Lisbon Alicante Athens Malaga Antalya Heraklion Larnaca Tenerife Scheduled International Domestic Medium-haul Long-haul Moderate growth of destinations, focus on increase in frequencies on scheduled routes. Aeroflot Group operates flights to 169 unique destinations in 53 countries (in 2018 summer schedule, incl. Russia and new destinations to be launched in the upcoming month). 18 Note: 1 Scheduled flights of Aeroflot Group (excluding Pobeda LCC)

19 Network Plans Summer 2018 Increasing frequencies on domestic routes (examples) Increasing frequencies on international routes (examples) New destinations to be launched from Summer 2018 Yekaterinburg 56 7 Prague April Cairo (Egypt) 3 flights per week Rostov N.Novgorod Rome Milan May Saransk (Russia) 14 flights per week Kaliningrad 38 4 Istanbul July Naples (Italy) 7 flights per week Ufa 35 7 Antalya July Verona (Italy) 7 flights per week Khanty-Mansiysk Magnitogorsk Novy Urengoy Dubai Bucharest Lyon July Burgas (Bulgaria) 7 flights per week 15 July Kyzylorda (Kazakhstan) 4 flights per week Weekly frequency in summer schedule 2017 Addition in weekly frequencies starting from summer schedule March St.Pete London (LGW) 7 flights per week Aeroflot continued to increase frequencies both on the routes with already high capacity deployed as well as underserved routes. Starting from summer 2018 we are launching flights to 6 new destinations in Russia, Kazakhstan, Italy, Bulgaria and Egypt. 19

20 Aeroflot Airline Domestic and International Transit Growing Connectivity of Aeroflot Airline s Flights 1... Average weekly frequency per route Aeroflot airline 16.0x 19.1x 21.2x 19.6x 21.3x Growth Q % 4.5% Results into a Flexible Approach to Transit Flows Considerable share of transit of Aeroflot airline in Sheremetyevo 44.2% 42.1% 42.9% 42.3% 40.1% 13.5% 12.1% 11.8% 11.6% 10.2% 16.7% 16.9% 17.5% 16.6% 15.2% % 14.0% 13.1% 13.6% 14.2% 14.7% Q Q International Domestic Combined Backed by Convenient Location of Aeroflot Hub Moscow Connectivity ratio Shortest geographical distance Q Q Domestic - Domestic International - Domestic / Domestic - International International - International Increase in International International Traffic Total Aeroflot airline int. int. transit traffic, million PAX % From/To Paris London Vienna Stockholm Rome Tokyo Via Moscow 15:00 15:05 13:45 13:15 14:55 Via Dubai 18:30 18:55 17:15 17:45 17:30 Shanghai Via Moscow 14:05 14:10 12:50 12:20 14:00 Via Dubai 17:25 17:50 16:10 16:40 16:25 Hong Kong Via Moscow 15:00 14:40 13:20 12:50 14:30 Via Dubai 18:30 17:10 15:30 16:00 15:45 Source: Company data, IMF, Eurostat, RITA, Russian State Statistics Service, Rosaviatsia. 1 Data for Aeroflot airline s own flights; Aeroflot adopted new frequency per route and connectivity ratio calculation methodology and previous periods were recalculated retrospectively Q Q Pickup in point-to-point demand combined with expanding capacities resulting in growing international transfer volumes Increasing flight frequency improves connectivity and supports Aeroflot s traffic growth in Sheremetyevo airport. Advantageous geographical positions and Group s efforts support traffic growth on key European and Asian destinations. 20

21 Aeroflot and FIFA World Cup 2018 in Russia Scheduled Routes to World Cup Locations Aeroflot Efforts sourced by: * 1 High frequencies to all host cities (scheduled flights) Saint Petersburg (4.5mm from Moscow) Direct flights between host cities 42 from St. Pete: 28 from Moscow: 13 Moscow Kaliningrad (4.5mm from St.Pete) (1.2mm from Moscow) (375k from St. Pete) from St. Pete: Nizhny Novgorod (530k from Moscow) (33k from St. Pete) Saransk from St. Pete: from Moscow: Kazan (1.3mm from Moscow) (142k from St. Pete) Samara (1.3mm from Moscow) (216k from St. Pete) Ekaterinburg (1.9mm from Moscow) (340k from St. Pete) from St. Pete: Additional capacity on routes with strong demand Charter flights for national football teams Aeroflot routes from St. Pete: from Moscow: Rostov-on-Don (1.6mm from Moscow) (262k from St. Pete) Sochi (3.6mm from Moscow) (515k from St. Pete) Rossiya routes from St. Pete: from Moscow: Volgograd (833k from Moscow) (43k from St. Pete) routes per week X weekly # of flights in 2017 summer schedule (XXmm from ) A PAX (based on traffic flows on the leg, not a city-pair market) from St. Pete: Support for Russian football fans (5 RUB fares) Operational initiatives, including extra staff, English speaking personnel in call centre and host cities, increased stock of replacement components etc Aeroflot Group is well positioned to leverage opportunities provided by the World Cup and will actively participate in passenger transportation, including dedicated direct and charter flights. We will also invest in our operations to ensure best in-class service and reliable transportation options for all guests of the 21 Championship as well provide for affordable transportation for Russian football fans. Note: Pobeda also operates services to some host cities, including intra-regional flights. For information on Pobeda s flights please refer to the respective section of the presentation

22 1. Market Update 2. Aeroflot Group Overview 3. Aeroflot Group Operating Performance 4. Network and Schedule Overview 5. Fleet Overview 6. Financial Performance 7. Capital Structure and Liquidity 8. Appendix 22

23 Aeroflot Group Fleet Breakdown Aircraft Type Operated by Lease type Total as of Total as of Change vs. Owned Aeroflot Subsidiaries Finance Operating 31-Mar Dec Dec-17 Wide-body Airbus A Boeing Boeing Narrow-body (medium-haul) Airbus A Airbus A Airbus A Boeing Narrow-body (regional) DHC DHC SSJ Total fleet Breakdown by Aircraft 2 Breakdown by Company 2 Breakdown by Ownership Type 2 Wide-body 16% Pobeda Aurora 5% 7% Finance 12% Owned 2% Narrowbody (regional) 17% Narrowbody (mediumhaul) 67% Rossiya 19% Aeroflot 69% Operating 86% 1 Excluding An-24 and An-148 not operated by the airlines of the Group 2 Excludes planes out of operation Well-balanced fleet structure in line with Group s strategy 23

24 Fleet Expansion Strategy Delivery/Phase-out Schedule 1 Aeroflot Group Fleet as at Year-end 2 Number of aircraft Type of aircraft Q (Actual) Delivery Phase out Q2-Q Current fleet (1) Delivery Phase out 409 Wide-body (long-haul) A B B Narrow-body (medium-haul) 10 (5) (14) A (2) A (2) 81 8 (4) A (3) 38 2 (7) B (1) Narrow-body (regional) SSJ DHC DHC TOTAL 16 (5) (14) Net additions (1) + 11 aircraft + 27 aircraft E 2019E 2020E 2021E 2022E 1 As of , not including aircraft leased or subleased to other operator (1 An-24 and 5 An-148 ). Phase-out plans for Q2-Q include aircraft in finance lease that will be phased out according to the existing plan. 2 According to existing strategy. Not including aircraft leased or subleased to other operator. Aeroflot Group continues to intelligently manage capacity additions and develop its fleet taking into account market trends and opportunities. 24

25 1. Market Update 2. Aeroflot Group Overview 3. Aeroflot Group Operating Performance 4. Network and Schedule Overview 5. Fleet Overview 6. Financial Performance 7. Capital Structure and Liquidity 8. Appendix 25

26 Financial Highlights: Q RUB mln (where applicable) Q Q Change Passenger Traffic (mln PAX) 10,302 10, % Revenue 103, , % Traffic Revenue 87,205 96, % EBITDAR 1 13,742 10,767 (21.6)% EBITDAR 1 margin 13.3% 9.6% (3.7) p.p. EBITDA (1,136) (7,732) 6.8x Financial results of Q are explained by seasonality pattern of the Russian aviation market coupled with macroeconomic factors fuel and exchange rate dynamics. Cost pressure were partially offset by increasing yield that helped us to increase revenues ahead of passenger traffic and passenger turnover 1 EBITDAR = EBITDA + operating lease expenses. 26

27 Revenue Growth Decomposition Revenue by Key Factors Revenue by Business Segments RUB mln RUB mln 8.5% 8.5% 5.2% + 2.8% + 0.7% + (0.1)% 8.5% + 0.9% + 0.4% + (1.2)% 103,125 5,333 Growth in operating metrics: RPK + 6.7% PAX + 6.6% 2, (75) 111,942 Appreciation of RUB in Q y-o-y by c3% vs. USD, depreciation of RUB in Q y-o-y by c11% vs. EUR 103,125 8, Charter RPK up by c6% y-o-y Growth across geographies: Russian revenue % International revenue +10.4% Cargo volumes + 9.6% (1,274) 111,942 Mainly agreements with airlines driven by appreciating RUB vs. USD Q Volume Currency Pricing Other Q Q Scheduled Passenger Flights Charter Passenger Flights Cargo Other Revenue Positive contribution of all volume and support from FX were the main factors influencing revenue. Primary driver of revenue growth was expansion of scheduled passenger flights across all segments, notably in Russia, Europe and Asia Q

28 Aeroflot Group Scheduled Flights Revenue Units Q1 Yield (PAX Revenue / RPK) RUB 5.1% 3.67 Q1 RASK (PAX Revenue / ASK) RUB 3.1% % % % % Domestic International Total Domestic International Total % Y-o-Y increase Note: Data presented based on management accounting figures, scheduled flights revenue is used for calculations. RUB dynamics and changing mix of operations at subsidiaries level due to rapid expansion of LCC affected RUB yields in Q

29 Aeroflot Airline Yield Dynamics (Monthly) Aeroflot Airline Total Yield Aeroflot Airline International Yield RUB/RPK, Change y-o-y in % 7.9% RUB/RPK, Change y-o-y in % 9.8% (2.3)% (2.4)% (1.3)% 0.0% 0.4% 4.4% (11.4)%(11.9)% (10.6)%(9.5)% (7.3)% (0.1)% (4.2)% (4.2)% (2.6)% (1.8)% 4.1% 4.5% Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Aeroflot Airline Domestic Yield RUB/RPK, Change y-o-y in % % 3.7% (4.8)% 1.8% 0.4% 1.1% 1.1% 1.8% 2.1% (6.3)% (6.1)% (0.4)% (0.0)% (8.9)% (7.8)% Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar (4.5)% Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Source: Company calculations, data presented based on management accounting figures for Aeroflot airline standalone; immaterial deviations vs. historical data may occur due to adjustments in Revenue Management System (RMS) Aeroflot airline yields showed improvement on a monthly basis throughout 2017 (y-o-y) and in 2018 yield dynamics entered positive zone in both international and domestic segments In Q international segment was the main driver of Aeroflot growth: towards the end of the quarter in March 2018 yield dynamics reached +9.8% y-o-y. 29

30 Operating Costs Operating Expense (RUB mln If not stated otherwise) Q Q Change y-o-y Change ex. FX & NRE % of Total OpEx (Q1 2018) Fuel 27,427 34, % 27.2% 27.6% Opex (ex. Fuel) 80,635 89, % 12.0% 72.4% Aircraft, traffic and passenger servicing 21,154 21, % 2.2% 17.7% Staff 18,588 21, % 15.3% 17.3% Operating lease 14,878 18, % 28.9% 15.0% Maintenance 8,179 8, % 6.0% 6.9% SG&A 1 6,171 6,160 (0.2)% 0.2% 5.0% D&A and customs duties 3,800 3, % 1.7% 3.1% Other expenses 2 7,865 9, % 19.0% 7.4% Total Opex 108, , % 15.8% 100.0% 1 Includes sales and marketing expenses and administration and general expenses. 2 Other expenses include Global Distribution Systems cost, reserves accrual, catering expenses, banks commissions. In Q operating costs were significantly impacted by expansion of operations, fuel price increase and growing fleet of the Group. FX dynamics also affected key operating expenses lines. 30

31 Group Unit Costs Operating Expense per ASK (CASK), RUB Q Q Change Fuel % Opex (ex. Fuel): % Aircraft, Traffic and Passenger Servicing (2.4)% Staff % Operating Lease % Maintenance (2.4)% SG&A (5.9)% D&A and Customs Duties (4.2)% Other Expenses % Total Opex % 7.7% 1.3% 9.2% 0.13 (0.01) (0.01) 0.07 (0.00) (0.01) Reported CASK Q Staff Fuel Maintenance Aircraft, Traffic and Passenger * Customs duties Servicing Operating Lease D&A and CD* Admin & Sales & Marketing Other Costs Reported CASK Q FX CASK Q ex. FX Reported CASK Q Cost per ASK increased by 7.7% from RUB 3.13 in Q to RUB 3.37 in Q on the back of fuel, staff and operating lease expenses pressure. 31

32 Fuel Cost Management Flight Hours Fuel Consumption per ASK Fuel Consumption per RTK (thousand hours) (gr/ask) (gr/rtk) 7.6% (1.2)% (1.5)% ,9 22,6 294,8 290,2 225 Aeroflot Airline Jet Fuel Price (RUB per tonne of jet fuel) Q Q Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Q (WA) USD/RUB Brent (USD) Source: Bloomberg, Company data 1 Weighted average price for Q1 Q Q USD/RUB exchange rate as per the Central Bank of Russia 3 Assuming 18% VAT rate Comments Q Q Efficient fuel procurement: 1-year supply contracts in airports across Russia Majority of fuel purchased in Russia and almost all fuel at international airports supplied at formulalinked price - Jet fuel price Intl = NW Europe (FOB Rotterdam) price x Discount x FX rate 2 x Storage/Fuelling/Supply fees (if any of these applicable) Increasing average fuel price. Weighted average fuel purchase price of $697/ton (RUB 39,641/ton) in Q vs $576/ton (RUB 33,887/ton) in Q (17.0% y-o-y increase in RUB terms) Aeroflot is achieving efficiency gain in fuel costs as new aircraft are put into operation Oil price and RUB fluctuations led to further upward pressure on jet fuel price in Q

33 Headcount Overview Aeroflot Group Headcount by Category Traffic Revenue / Average Airlines Headcount 31-Dec Mar-2018 % Cabin crew 11,259 11, % Airport services 7,034 7, % Technical maintenance and repair 4,702 4, % Flight crew 3,846 3, % Tickets and services sales, advertising 1,903 1, % Other airline personnel (inc. airlines head office) 5,430 5, % Other non-airline subsidiaries personnel 4,696 4, % Total 1 38,870 39, % 1 Aeroflot Group headcount table excludes Aeroflot Aviation School headcount amounting to 181 employees as at and 194 employees as at Other airline personnel 13.9% Airport services 17.8% PAX Traffic / Average Airlines Headcount (million RUB per employee, annualized to ) (passengers per employee, annualized to ) Other non-airline personnel 11.9% Tickets and services sales, advertising 4.8% Flight crew 10.0% Cabin crew 29.3% Technical maintenance and repair 12.4% 6.0% 9.0% ,379 1, (LTM) (LTM) (LTM) (LTM) Improvement in labour productivity has resulted in increase of key performance indicators in Q Aeroflot Group headcount increased by 7.5% vs. March 31,

34 EBITDA Evolution (RUB mln) Total effect on revenue =8,817 RUB mln Total effect on costs =(15,412) RUB mln Net volume and price effect =5,980 RUB mln Net FX effect =4,484 RUB mln Net volume and price effect =(17,059) RUB mln 2,837 1,647 (7,469) Volume effect (1,641) RUB mln 5, (75) Price effect (5,382) RUB mln (2,838) (1,136) (455) (4,297) (7,732) (494) (10) (1,497) Reported EBITDA Q Volume Pricing Other FX benefit on revenue * Excluding currency impact FX benefit on costs Fuel* Staff* Aircraft, Traffic and PAX* Operating Leases* Maintenance* Admin & Sales & Marketing* Positive FX impact was observed both on revenue and operating costs due to multidirectional dynamics of RUB vs. USD and EUR. Key drivers of EBITDA adjustment along with the growth in size and scale of operations were fuel and operating lease costs increase. Other OPEX* Reported EBITDA Q

35 Pobeda Financial Results Increasing PAX Traffic 1 RASK dynamics Growing Revenues of LCC Segment Million passengers RUB RUB mln Q Q Change (Q1 18/17) Revenue 3,277 5, % Q Q Q Q PAX up by 42.2% in Q RASK up by 2.7% in Q EBITDAR % Increasing ASK Billion ASK CASK dynamics RUB EBITDAR margin 4.2% 4.6% 0.4 p.p EBITDA (685) (882) 28.8% Q Q Q Q Net loss (474) (736) 55.1% ASK up by 50.9% in Q CASK down by 0.3% in Q Note: based on managerial accounts transformed under IFRS standards 1 Calculation based on Total Revenue of the Company Pobeda has demonstrated solid results backed by strong demand, active expansion of the fleet and efficient cost management which allowed LCC to secure flattish CASK while growing RASK in Q

36 1. Market Update 2. Aeroflot Group Overview 3. Aeroflot Group Operating Performance 4. Network and Schedule Overview 5. Fleet Overview 6. Financial Performance 7. Capital Structure and Liquidity 8. Appendix 36

37 Leverage and Liquidity Debt Profile 1 Net Debt / LTM EBITDA 2 RUB mln 31-Dec Mar-2018 Change Borrowings 3,181 3, % Finance Lease Liabilities 100,689 88,257 (12.3)% Pension Liabilities % Total Debt 104,792 92,718 (11.5)% Cash and Short Term Investments 54,909 63, % Net Debt 49,883 29,470 (40.9)% 4 31-Mar Jun Sep Dec Mar-2018 RUB mln Net Debt 2 EBITDA 2 30-Jun Sep Dec Mar ,618 48,925 49,883 29,470 63,373 54,147 56,015 49,420 Debt breakdown by currency Finance Lease Repayment Schedule (RUB billion) 3 Borrowings 11% Finance Lease 2% % RUB USD 98% Dec-2017 exchange rate RUB per USD, 31-Mar-2018 exchange rate RUB per USD 3 Not including interest; future payments in dollars converted into roubles at exchange rate of RUB per USD 2 Net debt does not include capitalised operating lease expenses; based on annualized EBITDA 4 From 01-Jan-2018 interest on bank deposits is included in Cash and Short Term Investments (175.6 million RUB as at 31-Mar-2018) Net Debt decreased by 40.6% mainly due to decrease in finance lease obligations as well as accelerated growth in cash position. Cash position of RUB 63.1 billion and undrawn credit lines of RUB 99 billion 37

38 Operating and Free Cash Flows (RUB mln) Billion RUB Q Other adjustments before working capital changes, incl. 5.1 Change in provisions Effect from revenue hedging (finance lease hedge accounting) 1.3 Loss on fixed assets disposal 0.3 Other 0.1 Billion RUB Q Working capital changes and income tax, incl Change in accounts receivable and prepayments (6.6) Change in accounts payable and accrued liabilities 21.2 Change in tax and restricted cash (0.1) (20.3)% 6,178 (1,013) 4,953 14,533 (1,824) ,371 24,318 10,291 5,146 (4,242) (13,727) 3,458 1,717 (836) Profit Before Income Tax D&A Interest Expense Unrealized Net FX Gain Other Adj. Before Working Capital Changes Cash Flows From Operating Activities Before Working Capital Changes Working Capital Changes and Income Tax Net Cash Flows From Operating Activities Capital Expenditures Proceeds From Sale of PPE Deposit Placement and Return Net Predelivery Payments for Aircraft Net Leasing Deposits for a/c in Operating Lease and Other Free Cash Flow Q Free Cash Flow Q Change in provisions line mainly consists of provision for regular repairs and maintenance Strong Operating and Free Cash Flow generation in Q on the back of growing business volumes and solid operating performance despite lowest quarter of the year. 38

39 1. Market Update 2. Aeroflot Group Overview 3. Aeroflot Group Operating Performance 4. Network and Schedule Overview 5. Fleet Overview 6. Financial Performance 7. Capital Structure and Liquidity 8. Appendix 39

40 Key Operating Data of Subsidiary Airlines Indicator Unit Rossiya Airline Pobeda Airline Aurora Airline Q Y-o-Y Q Y-o-Y Q Y-o-Y Passenger Traffic th PAX 1,862 (6.7)% 1, % % International Routes th PAX % % % Domestic Routes th PAX 1,252 (13.3)% 1, % % Passenger Turnover mln pkm 4, % 2, % % International Routes mln pkm 2, % % 115 (0.9)% Domestic Routes mln pkm 2,349 (9.2)% 1, % % Passenger Capacity mln ASK 5,909 (6.2)% 2, % % International Routes mln ASK 2, % % % Domestic Routes mln ASK 3,150 (17.1)% 1, % % Passenger Load Factor % 82.2% 5.3 p.p. 93.1% 1.5 p.p. 69.7% 3.5 p.p. International Routes % 90.9% 0.7 p.p. 93.2% 6.2 p.p. 68.8% (2.4) p.p. Domestic Routes % 74.6% 6.5 p.p. 93.1% (0.2) p.p. 70.0% 5.5 p.p. Flight Hours hours 38,846 (5.3)% 18, % 9, % 40

41 Aeroflot Group Scheduled Flights Revenue Units Q1 Yield (PAX Revenue / RPK) Q1 RASK (PAX Revenue / ASK) RUB RUB 1.6% % % % % % 2.65 Domestic International Total Q1 Yield ex. Pobeda (PAX Revenue / RPK) RUB Domestic International Total Q1 RASK ex. Pobeda (PAX Revenue / ASK) RUB % % % % % % Domestic International Total Domestic International Total % Y-o-Y increase Note: Data presented based on management accounting figures, scheduled flights revenue is used for calculations. RUB dynamics and changing mix of operations at subsidiaries level affected RUB yields in Q

42 Aeroflot Group Flights Revenue Units Q1 Yield (Scheduled PAX Revenue / RPK) RUB Q1 RASK (Scheduled PAX Revenue / ASK) RUB % % % % % % 2.65 Q1 Yield (Scheduled + Charter PAX Revenue / RPK) RUB Domestic International Total Q1 RASK (Scheduled + Charter PAX Revenue / ASK) RUB Domestic International Total % % % % % % 2.65 Domestic International Total Domestic International Total % Y-o-Y increase Note: Data presented based on management accounting figures, scheduled and charter flights revenue is used for calculations RUB dynamics and changing mix of operations at subsidiaries level affected RUB yields in Q

43 Aeroflot Group Fleet Evolution Aeroflot Group Fleet in Operation 1 Average Age of the Fleet Aircraft Aircraft Average Age ,1 289 Average Age , /31/2018 Aeroflot Airline Fleet in Operation Hainan Airlines Shandong Airlines Spirit Airlines Xiamen Airlines Azul China Eastern Airlines Sichuan Airlines Emirates Airline Lion Air Garuda Indonesia Saudia Etihad Airways IndiGo Qatar Airways Air China Shenzhen Airlines Singapore Airlines Japan Airlines American Airlines Qantas Lufthansa Air France Jazz British Airways United Airlines Delta Air Lines /31/ Excludes planes out of operation 2 Average Fleet Age of Selected Airlines with Active Fleet of 100+ Aircraft according to FlightGlobal data (as of March 2018) excluding planes out of operation Aeroflot operates the youngest fleet 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

44 Traffic Revenue Analysis Traffic Revenue Breakdown by Type Q Sheduled Passenger Flights 90.5% Revenue from Scheduled Passengers (RUB mln) 1 Region Q Q Y-o-Y Q1 2018, % of sch. revenue Russia 30,562 33, % 37.3% Europe 22,362 25, % 27.8% Asia 16,087 17, % 19.2% Cargo 3.8% Charter Passenger Flights 5.8% Scheduled Traffic Revenue by POS Q Sales in Russia 32.6% Call center and ow n branches 3.3% Online 33.8% Sales abroad 30.3% CIS 4,058 4, % 4.9% North and Central America 4,997 5, % 5.7% Middle East 4,269 4, % 5.2% Total 82,336 91, % 100.0% Total Passenger Revenue (Scheduled + Charter, RUB mln) Segment Q Q Y-o-Y Q1 2018, % of revenue Domestic 31,715 34, % 35.9% International 55,489 62, % 64.1% Total 87,205 96, % 100.0% In Q revenue from scheduled passengers grew by 10.7% mainly driven by revenue growth on Russian, European and Asian markets. 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 44

45 Reported and Adjusted Net Loss Analysis Q1 Adjusted Net Loss Build-Up (RUB mln) (11,543) (11,605) 1,052 (251) (863) Reported Net Loss Q Discounting of receipt of lease deposits Change in the fair value of investments in equity securities FOREX on PDP Adjusted Net Loss Q One-off effects had limited influence on Aeroflot Group Q financial results. 45

46 Net Income Evolution (RUB mln) 10,091 (1,274) (15,476) (5,339) (11,543) (253) (732) ,061 9 Pressure from higher fuel prices, staff costs and operating lease expenses in Q Reported Net Loss Q Traffic Revenue Other Revenue Operating Expenses Finance Income Finance Costs Hedging Result Revaluation of Equity Investments and other Taxation Other Reported Net Loss Q Increase in revenue generated by growing volumes was offset by a less favorable cost environment which resulted in adjustment of the bottom line. 46

47 Statement of Comprehensive Income RUB mln, unless otherwise stated Q Q Traffic revenue 257, , , , ,916 90, ,674 Other revenue 33,410 42,417 55,968 61,914 58,018 12,542 11,268 Revenue 290, , , , , , ,942 Operating costs (271,161) (308,503) (371,066) (432,626) (492,523) (108,061) (123,538) Operating profit / (loss) 19,795 11,268 44,107 63,254 40,411 (4,936) (11,596) Sale and impairment of investments, net - - (9,159) (2,935) (144) (57) 215 Finance income 2,686 2,471 15,811 19,802 7,127 1,971 1,718 Finance costs (8,814) (28,399) (28,556) (9,443) (8,225) (2,038) (2,769) Hedging result - (1,723) (23,746) (12,310) (5,613) (1,391) (1,293) Share of results of associates (17) (11) (2) Result from disposal of subsidiaries (5,099) Profit / (loss) before income tax 13,704 (16,352) (1,560) 53,281 33,726 (6,462) (13,727) Income tax (6,369) (794) (4,934) (14,455) (10,666) 1,123 2,184 Profit / (loss) for the period 7,335 (17,146) (6,494) 38,826 23,060 (5,339) (11,543) EBITDAR 51,026 48, , , ,808 (13,742) 10,767 EBITDA 31,849 24,839 58,703 78,004 56,015 (1,136) (7,732) Traffic revenue growth 16.4% 7.7% 29.5% 20.8% 9.4% - 8,5% Revenue growth 15.0% 9.9% 29.8% 19.4% 7.5% - 11,1% Operating profit margin 6.8% 3.5% 10.6% 12.8% 7.6% - - EBITDAR margin 17.5% 15.2% 24.8% 27.7% 22.9% - - EBITDA margin 10.9% 7.8% 14.1% 15.7% 10.5%

48 Condensed Statement of Financial Position Assets (RUB mln) Cash and cash equivalents 18,660 26,547 30,693 31,476 45,978 59,105 Short-term financial investments ,917 6,319 8,931 4,143 Accounts receivable and prepayments 55,691 56,769 76,317 78,172 92,932 96,220 Expendable spare parts and inventories 4,927 6,516 7,447 10,040 12,811 12,806 Property, plant and equipment 88, , , ,897 97,932 87,959 Prepayments for aircraft 12,318 29,241 35,291 27,830 13,089 9,679 Deferred tax assets 2,174 18,540 21,632 12,252 10,396 11,374 Goodwill 6,660 6,660 6,660 6,660 6,660 6,660 Other assets 19,705 16,440 26,743 21,661 34,601 47,419 Total Assets 209, , , , , ,365 Liabilities (RUB mln) Accounts payable and accrued liabilities 36,249 48,952 54,751 49,868 67,953 71,323 Unearned traffic revenue 16,334 22,469 28,691 39,044 43,695 65,473 Short-term loans and borrowings 5,029 17,343 54,085 9, Long-term loans and borrowings 8,377 6,860 14,375 11,058 3,181 3,355 Finance lease liabilities 63, , , ,143 84,674 73,923 Provisions for liabilities 1,655 4,845 6,917 10,791 16,949 19,503 Other liabilities 23,712 58,388 47,475 31,325 39,579 43,245 Total Liabilities 154, , , , , ,997 Hedge reserve (383) (48,657) (64,720) (34,187) (25,159) (23,650) Retained earnings 61,122 45,584 39,755 77,198 81,476 71,393 Total Equity 54,480 (13,505) (36,120) 40,769 67,299 58,368 Total Liabilities and Equity 209, , , , , ,365 48

49 Statement of Cash Flows RUB mln, unless otherwise stated Q Q Operating cash flows before working capital changes 32,944 31,603 64,269 81,994 65, (4,242) Change in accounts receivable and prepayments (3,014) 4,658 (2,251) (6,191) (27,816) (5,359) (6,556) Change in expendable spare parts and inventories (1,019) (1,831) (1,216) (2,809) (2,672) (321) 7 Change in accounts payable and accrued liabilities 4,345 8,452 14,705 13,387 24,964 26,763 21,162 Operating cash flows after working capital changes 33,256 42,882 75,507 86,381 59,806 21,298 10,371 Income tax paid (4,260) (6,863) (6,041) (13,943) (13,019) (514) (102) Net cash flows from operating activities 28,945 35,977 69,664 73,647 47,432 20,798 10,291 Cash flows from investing activities: Purchases of PPE and intangible assets (4,410) (6,160) (9,196) (10,222) (7,681) (961) (1,824) Prepayments for aircraft (7,154) (21,361) (22,708) (18,806) (7,931) (85) (1,883) Return of prepayments for aircraft 7,783 9,620 7,828 29,362 26,274-8,061 Net cash flows from/(used in) investing activities (3,599) (18,492) (38,770) 10,331 14,369 3,520 9,080 Cash flows from financing activities: Repayment of loans and borrowings (14,579) (9,870) (36,267) (72,991) (17,417) (1,573) - Repayment of finance lease principal (9,795) (15,629) (19,455) (27,024) (15,513) (1,995) (5,356) Net cash used in financing activities (21,782) (14,673) (28,075) 80,495 46,821 (4,607) (6,142) Net increase in cash and cash equivalents 3,590 7,887 4, ,502 19,283 13,127 Cash and cash equivalents at the end of the period 18,660 26,547 30,693 31,476 45,978 50,759 59,105 49

50 Board of Directors Corporate Governance Board of Directors General Meeting of Shareholders Audit Committee (4 members) Name Mikhail Poluboyarinov Audit Committee Personnel and Remuneration Committee Strategy Committee Chairman of the Board of Directors Board of Directors Personnel and Remuneration Committee (6 members) Vitaly Saveliev Lars Erik Anders Bergstrom Sergey Chemezov Member Member Executive Board Strategy Committee (10 members) Alexey Germanovich Member Chairman Member Igor Kamenskoy Member Member Chairman Incorporated in Russia, PJSC Aeroflot is subject to Russian corporate governance regulations and follows Russian Corporate Governance Code Dmitry Peskov Member Member Dmitry Saprykin Member Vasily Sidorov Chairman Member Member The Board of Directors is currently composed of 11 members. The Board s composition is well balanced from members background perspective, number of independent, non-executive and executive directors Yuri Slyusar Member Mikhail Voevodin Member Member Independent director according to the Russian Corporate Governance Code 50

51 Aeroflot Group Structure PJSC Aeroflot (1) Airlines Ancillary Companies JSC Rossiya Airlines 75%-1 sh. CJSC Aeromar In-flight catering 51% JSC Donavia (2) 100% JSC Orenair (2) 100% JSC Aurora Airlines 51% LLC Pobeda Airlines 100% LLC Aeroflot-Finance Financial services JSC Sherotel Hotel services Aeroflot Aviation School Education services 100% 100% 100% A-Technics Maintenance 100% Over the past years the Group structure was refined with a focus on aviation assets and disposal of non-core assets, which is in compliance with the Group's strategy to streamline the core business PJSC Aeroflot also owns 45.0% of JSC AeroMASh-AB (Aviation security), 2.43% of JSC Sheremetyevo International Airport (base airport), 3.85% of PJSC Transport Clearing House (mutual settlements between agencies and airlines) and 49.0% of LLC Transnautic Aero (cargo sales, in liquidation) Notes: (1) The Group as of March 31, 2018; Aeroflot Group consolidates all entities: PJSC Aeroflot and all subsidiaries. (2) Non-operating entities 51