Q3 & 9M 2020 IFRS RESULTS

46
AEROFLOT GROUP Q3 & 9M 2020 IFRS RESULTS 1 December 2020 Speakers: Andrey Chikhanchin Deputy CEO for Commerce and Finance Andrey Panov Deputy CEO for Strategy, Service and Marketing Ivan Batanov Head of Revenue Management

Transcript of Q3 & 9M 2020 IFRS RESULTS

Page 1: Q3 & 9M 2020 IFRS RESULTS

A E R O F L O T G R O U PQ3 & 9M 2020 IFRS RESULTS

1 December 2020

Speakers:

Andrey Chikhanchin – Deputy CEO for Commerce and Finance

Andrey Panov – Deputy CEO for Strategy, Service and Marketing

Ivan Batanov – Head of Revenue Management

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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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Aeroflot Group Q3 2020 Highlights

Note: immaterial deviations throughout the presentation are explained by rounding

Total PAX Decline Strong Domestic PAX Recovery of Revenue Raising Liquidity

3.3x

25.5

84.9

18.5

10.1

80 bn

Q3 2019 Q3 2020 Q2 2020 Q3 2020

Million PAX Million PAX Billion RUB

In Q3 2020 the Group recovered a significant portion of operations and improved financial performance compared to Q2 raising additional liquidity to withstand headwinds of the coming low season.

70 bn

Proceeds from share placement

Loan agreements backed by state

guarantees

RUB

Q3 2019 Q3 2020

9.5 mln

10.3 mln

(7.3)%(45.3)%

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1. Market Update and Operating Results

2. Network and Schedule Overview

3. Fleet Overview

4. Financial Performance

5. Appendix 1: Strategy 2028

6. Appendix 2

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The market’s and Aeroflot Group’s performance substantially improved in Q3, though remained under pressure due to

ongoing restrictions for international operations.

23.1

9.2

4.5 3.6 3.4

12.4

AeroflotGroup

S7 Group Ural Airlines UTair Group ForeignCarriers

Others

10.3 9.5

8.30.6

18.5

10.1

Q3 2019 Q3 2020

25.817.9

21.0

5.2

46.7

23.1

9M 2019 9M 2020

23.1 22.7

24.8 2.6

47.8

25.3

Q3 2019 Q3 2020

International RoutesDomestic Routes

56.3 41.8

57.7

14.2

114.0

56.0

9M 2019 9M 2020

Overview of the Russian Market

Passenger Traffic: Market vs Aeroflot Group

Russian Air Transportation Market (million PAX)incl. PAX of Russian and Foreign Carriers and intl. transit PAX

Aeroflot Group (million PAX)

Key Market Players

Market Shares

(50.9)%

-23.7Change in PAX million

-2.8 -11.5

Foreign Carriers Others

9M 2019 9M 2020

Source: TCH, Aeroflot Group. Figures include foreign carriers’ traffic.

(45.3)%(50.7)%

-4.7

-2.9

-12.5

(47.1)%

41.0%

12.1%6.5%5.6%

13.0%

21.8%

41.2%

16.3%8.0%

6.3%

6.0%

22.2%

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Source: TCH, Federal Air Transport Agency, Aeroflot Group calculationsSource: TCH, Federal Air Transport Agency, Aeroflot Group calculations

Domestic Market Recovery in Q3 2020

Total PAX Traffic Trends: Q2 vs Q3 Domestic PAX Traffic Trends: Q2 vs Q3

Million PAX

38.1

4.6

Q2 2019 Q2 2020

(87.9)%

47.8

25.3

Q3 2019 Q3 2020

(47.1)%

18.4

4.5

Q2 2019 Q2 2020

23.1 22.7

Q3 2019 Q3 2020

(75.8)% (1.5)%

Domestic segment which contributes around half of the total Russian market posted rapid recovery after easing of

domestic travel restrictions in June 2020.

Million PAX

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Domestic markets RPK PLF (pp) PLF World share

World -43% -12% 70% 36.2%

Russia 7% -3 pp 82% 1.5%

China -3% -4 pp 79% 9.8%

Brazil -55% -1 pp 81% 1.1%

Japan -59% -20 pp 58% 1.1%

USA -65% -26 pp 57% 14.0%

Australia -89% -28 pp 54% 0.8%

Russian Domestic Market: Global Champion by Recovery Pace

Russian domestic market – the only one among key global markets to fully recover, already in August 2020 – just 1.5 months after the lockdown was over (based on IATA statistics).

Source: IATA, FAVT, data for Russian market is taken from FAVT, world market share is based on FY2019

Kaliningrad

+ 35%

Sochi

+41%Makhachkala

+25%

Murmansk

+ 15%

Source: based on FAVT and airport data

Anapa

+73%

5% 8%

(15%)

(87%) (84%)(59%)

(16%)

6% 7%

Jan Feb Mar Apr May Jun Jul Aug Sep

Russian domestic PAX has recovered almost immediately…

Source: TCH

… making Russian market the fastest to recover globally…

Domestic PAX, y-o-y

September 2020, y-o-y

… with PAX growth in various regions.

Selected Russian Airport Statistics (PAX), September,

y-o-y change

Kirov

+ 47%

Ulyanovsk

+ 47%

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Aeroflot Group Performance Across Different Brands

1.3

0.6

50.4%

• Flagship carrier

• Premium product (4 Stars)

• High income and middle class

• Hub and spoke model

• Scheduled network under SU

(Aeroflot) code from

− Moscow (SVO)

− St. Petersburg (LED)

• Charter operations

Premium28.4

11.611.6

-59.1%

9.4

4.5

7.66.3

-52.2%

-16.7%

-52.2%

9M 2019 9M 2020

19.6%

27.4%

2.7%

4.5

6.3

0.6

• Point-to-point carriage

• Focus on domestic

segment and underserved

international routes

• Airline for communities in the

Russian Far East offering

flights

− between large cities

− to remote cities

Source: Aeroflot Group1 PAX contribution as of 9M 2020. Absolute number of passengers in million in green circle

9M 2019 9M 2020

9M 2019 9M 2020

9M 2019 9M 2020

Brand Business Model 9M 2020 PAX Contribution1 and Dynamics October 2020

Mid-price

Low Cost

Regional

-66% PAX

-69% ASK

-41% PAX

-47% ASK

+11% PAX

+7% ASK

-54% PAX

-42% ASK

In Q3 2020 the Group recorded continued recovery of the domestic segment, but the overall result for 9M 2020 was still

under pressure from international segment’s slower reopening.

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2.02.5

3.02.5

0.4

3.4

Q1 Q2 Q3

2019 2020

Pobeda Airline: Timely Value Proposition

Growing PAX numbers from July 2020after restarting operations in June

Operating Indicators of October 2020

62

Krasnodar

Rostov

NazranMakhachkala

Astrakhan

Volgograd

KazanPerm

Chelyabinsk

Ekaterinburg

Surgut

Novosibirsk

Bergamo

Bratislava

Cologne

Memmingen

Girona

Samara

Cheboksary

Larnaca

Tivat

Saint Petersburg14

Nizhnekamsk

Moscow

VladikavkazTbilisi

Krasnoyarsk

Pisa

Base cities with >10 routes served from city

(number of routes in circle)

Baden-Baden

Ulan-Ude Karlovy VaryLeipzig

Venice

Kaliningrad

Eindhoven

Helsinki

Innsbruck

Kemerovo

Salzburg

Berlin

Rome

Kirov

Min.Vody

Petrozavodsk

Tomsk

XXCities with <10 routes served from city

Cities the airline operates flights to

Anapa

AntalyaBodrum

Bari

Cagliari

CataniaDalaman

Gelendzhik SochiGenova

Gazipaşa

Istanbul Gyumri

Omsk

Ostende

Palermo

Riga

Rimini

TyumenUlyanovsk

Varna

Batumi

Magnitogorsk

12

Total PAX dynamics in 2020Overview

34 B737NG aircraftwith single class cabin (189 seats)

6.3 mm PAXtransported in 9M 2020 (-16.7% y-o-y)

92.7% PLFLF remained high in 9M 2020 despite ongoing pressure

Source: Aeroflot Group

Beginning of 2020 route network

Traffic above 2019 levels

17 p.p. RPK mix shiftfrom international to domestic in 9M 2020 y-o-y

(82.5)% 12.1%22.2%

mn PAX, change y-o-y

10.6% 15.6% (4.2) p.p.

1 044,36 045

Traffic, th PAX Revenue flights,cycles

91.5%

PLF, %

Pobeda continues to lead the industry recovery leveraging its value proposition appealing to cost conscious passengers.

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1. Market Update and Operating Results

2. Network and Schedule Overview

3. Fleet Overview

4. Financial Performance

5. Appendix 1: Strategy 2028

6. Appendix 2

Page 11: Q3 & 9M 2020 IFRS RESULTS

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Aeroflot routes

Rossiya routes

Aurora routes

Source: Aeroflot Group

Note: 1 Scheduled flights of Aeroflot Group in 9M 2020 vs. 9M 2019 (excluding Pobeda LCC)

Los Angeles

MOSCOW

Malaga

Alicante

Amsterdam

Brussels

Stockholm

AthensAntalya

Barcelona

Belgrade

Bologna

BudapestParis

Copenhagen

DresdenDusseldorf

Rome

Frankfurt

Geneva

Hannover

Hamburg

Helsinki

Heraklion

Istanbul

Larnaca

London

Lyon

Madrid

Munich

MilanNice

Oslo

Bucharest

Prague

Riga

Thessaloniki

SofiaSplit

Stuttgart

Berlin

Tbilisi

Tenerife

Tivat

Tallinn

Venice

Vienna

Valencia

Kaunas

Warsaw

Zagreb

Zurich

Lisbon

Havana

Washington

New York

Miami

Male

Phuket

Ho Chi Minh City

MOSCOW

Anapa

Abakan

Adler

Arkhangelsk

Astrakhan

Barnaul

Chelyabinsk

Belgorod

Magadan

Gelenzhdik

Khanty Mansiysk

Irkutsk

Kemerovo

Kaliningrad

Khabarovsk

Krasnoyarsk

Krasnodar

SamaraKazan

Saint Petersburg

Murmansk

Magnitogorsk

Mineral Waters

NizhnekamskNizhny Novgorod

Nizhnevartovsk

Novokuznetsk

New Urengoy

Novosibirsk

Perm

P. Kamchatsky

Orenburg

Rostov

Saratov

SyktyvkarSurgut

Simferopol

Salekhard

Stavropol

EkaterinburgTyumen

TomskUfa

Yu. Sakhalinsk

Volgograd

Voronezh

Vladivostok

Yakutsk

Aktobe

Almaty

Shymkent

Yerevan

Bishkek

Atyrau

Baku

KaragandaChisinau

KostanayMinsk

Aktau

SamarkandTashkent

Astana

Beirut

Dubai

Teheran

Tel Aviv

Bangkok

HanoiHong Kong

Guangzhou

Delhi Shanghai

Tokyo

Beijing

Seoul

Ulan Bator

Sochi

Frankfurt

Dalian

Harbin

Busan

Antalya

BarcelonaBurgas

Paris

Dusseldorf

Rome

Hamburg

Varna

Larnaca

Munich

MilanNice

Prague

Rimini

Berlin

TivatIstanbul

Vienna

Makhachkala

Orly

Omsk

Minsk

Chisinau

Aeroflot Group Network Adjustments

2020 Domestic Scheduled Network (flights per day, av.)# of Flights Evolution by Region, 9M 2020 y-o-y1

Beginning of 2020 route network

409

Q1 Q2 Q3

199

157

327

93

132

40

Despite recovery of domestic segment international flights have mostly been under continued pressure.

(47.1)%

(68.0)%

(70.7)%

(68.4)%

(69.8)%

(73.0)%

(27.9)%

Total

Middle East & Africa

CIS

North & Central America

Asia-Pacific

Europe

Russia

13030

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Source: Aeroflot Group

Aeroflot Group Network Adjustments

DestinationAug

20

Sep

20

Oct

20

Nov

20

Nov

19

London 11 14 11 11 32

Belgrade - - 2 2 21

Geneva 1 1 2 3 14

Istanbul 24 35 35 35 35

Antalya 14 14 28 14 14

Dubai - 2 2 2 21

Cairo - 3 3 3 7

Male - 2 2 4 5

Minsk - - 2 3 42

Bishkek - 1 5 7 14

Osh - - 4 6 7

Nur-Sultan - 1 1 1 12

Tokyo - - - 1 7

Seoul - - 1 1 7

Gradual reopening of international network Turkey market recovered 3 weeks after reopening

Aeroflot Airline, number of one-way weekly flights

Flights to select points in USA, EU, Asia (multiple destinations)

for certain categories of passengers (passenger/cargo flights).

+

64.1

89.5

Sep'19 Sep'20

While others operate in line with deployed capacity

Istanbul

+23%

Antalya

+9%

Bodrum

Dalaman

(new)

39.6%

0.0 10.0 20.0 30.0 40.0 50.0

Cairo

Male

Dubai

Geneva

London

Sep'2020 Sep'2019

Indicator of relative ASK vs

PAX performance

Gradual reopening of international network indicates existing and delayed demand for international travel (based on load factors and yields performance) with Turkey market posting extraordinary performance in Q3.

Aeroflot Airline, thousand PAX

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3.18 3.24 3.21

2.51

2.842.63

Domestic International Total

3.76

4.073.93

3.41

4.13

3.66

Domestic International Total

RUB RUB

3.2%0.7% 1.1%Q3 Scheduled Yield (PAX Revenue / RPK) Q3 Scheduled RASK (PAX Revenue / ASK)

RUB / RPK RUB / ASK

% Y-o-Y increase 2019 2020 % Y-o-Y increase 2019 2020

(20.9)% (18.1)%(12.2)%(9.2)%

(7.0)%

1.4%

RUB RUB

3.2%0.7% 1.1%9M Scheduled Yield (PAX Revenue / RPK) 9M Scheduled RASK (PAX Revenue / ASK)

RUB / RPK RUB / ASK

Source: Aeroflot GroupNote: Data presented based on management accounts, scheduled flights revenue is used for calculations

Aeroflot Group Scheduled Flights Revenue Units

Negative though improving through the quarter yield dynamics in domestic segment due to extra capacity in the market

and positive trends in international due to currency factor and extreme limitations on flights.

4.02 4.29 4.17

3.35

7.21

3.60

Domestic International Total

(16.8)%(13.7)%

68.0%

3.65 3.65 3.65

2.75

4.94

2.92

Domestic International Total

(24.5)% (19.9)%

35.5%

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1. Market Update and Operating Results

2. Network and Schedule Overview

3. Fleet Overview

4. Financial Performance

5. Appendix 1: Strategy 2028

6. Appendix 2

Page 15: Q3 & 9M 2020 IFRS RESULTS

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Aeroflot Group continues to control capacity expansion and negotiate with lessors amid demand shock caused by COVID-19.

Type of

aircraft

9M 2020 Fleet as at

30.09.2020Delivery Phase out

Wide-body (long-haul) 1 (4) 56

A-330 - (4) 17

A-350 1 - 1

B-777 - - 29

B-747 - - 9

Narrow-body (medium-haul) - (3) 235

A-319 - - 30

A-320 - (3) 79

A-321 - - 33

B-737 - - 93

Narrow-body (regional) 6 (2) 66

SSJ-100 5 - 54

DHC-8 1 (2) 9

DHC-6 - - 3

TOTAL 7 (9) 357

Fleet Update

Actual and expected additions 2020 Fleet Plans

Further deliveries as well as

phase-outs are being

discussed with lessors

Part of the fleet is currently

temporarily grounded with

continuous rotation

In 9M 2020 Aeroflot Group

operated 357 aircraft vs 364

aircraft in 9M 2019

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1. Market Update and Operating Results

2. Network and Schedule Overview

3. Fleet Overview

4. Financial Performance

5. Appendix 1: Strategy 2028

6. Appendix 2

Page 17: Q3 & 9M 2020 IFRS RESULTS

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Q3 2019 Q3 2020 Change Million RUB (where applicable) 9M 2019 9M 2020 Change

18,533 10,129 (45.3)% Passenger Traffic (mln PAX) 46,728 23,056 (50.7)%

212,543 84,861 (60.1)% Revenue 523,983 234,213 (55.3)%

190,323 73,984 (61.1)% PAX Traffic Revenue 462,034 193,575 (58.1)%

165,466 95,497 (42.3)% Operating Costs 462,288 290,968 (37.1)%

47,077 (10,636) n/a Operating Income/(Loss) 61,695 (56,755) n/a

73,379 20,088 (72.6)% EBITDA 141,675 31,180 (78.0)%

34.5% 23.7% (10.8) p.p. EBITDA Margin 27.0% 13.3% (13.7) p.p.

29,089 (21,136) n/a Net Income/(Loss) 20,305 (79,406) n/a

Financial Highlights: Q3 and 9M 2020

Financial results of 9M 2020 are impacted by weaker demand due to COVID-19, with Q3 financials showing significant improvement over Q2, following lifting of restrictions within Russia and gradual reopening of international segment.

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523,983 (251,826)

(16,633)3,520 (24,831)

234,213

9M 2019 ScheduledPassenger

Flights

CharterPassenger

Flights

Cargo OtherRevenue

9M 2020

Revenue Dynamics Decomposition

Revenue by Key Factors Revenue by Business Segments

Million RUB Million RUB

Primary driver of revenue decline was scheduled passenger flights segment showing significant declines in every geographical segment.

523,983 (244,903)

1,036 (21,135)(24,768)

234,213

9M 2019 Volume Currency Pricing Other 9M 2020

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Operating Costs

Q3 2019 Q3 2020Change

y-o-y

Change

ex. FX

Operating Expense

(RUB mln if not stated otherwise)9M 2019 9M 2020

Change

y-o-y

Change

ex. FX

% of OpEx

(9M 2020)

52,861 18,077 (65.8)% (66.8)% Fuel 145,569 62,006 (57.4)% (58.0)% 21.3%

112,605 77,420 (31.2)% (36.1)% Opex (ex. Fuel) 316,719 228,962 (27.7)% (29.9)% 78.7%

35,728 15,903 (55.5)% (58.5)% Aircraft and passenger servicing 96,893 48,840 (49.6)% (51.2)% 16.8%

26,302 30,724 16.8% 9.2% D&A and customs duties 79,980 87,935 9.9% 7.4% 30.2%

22,065 15,734 (28.7)% (29.2)% Staff 66,859 50,354 (24.7)% (25.1)% 17.3%

8,278 4,676 (43.5)% (45.1)% SG&A1 22,481 15,155 (32.6)% (33.7)% 5.2%

9,955 6,778 (31.9)% (49.9)% Maintenance 23,942 20,247 (15.4)% (24.7)% 7.0%

4,339 2,215 (48.9)% (54.2)% Communication Expenses 13,483 6,647 (50.7)% (53.9)% 2.3%

5,938 1,390 (76.6)% (78.4)% Other expenses2 13,081 (216) n/a n/a (0.1)%

165,466 95,497 (42.3)% (45.9)% Total Opex 462,288 290,968 (37.1)% (38.8)% 100.0%

1 Includes sales and marketing expenses and administration and general expenses.2 Other expenses include short-term and immaterial lease, reserves accrual and reversal, catering, other income and 7.9 bn RUB government subsidy for lost traffic (Q2 2020).

Operating Expenses Breakdown

In 9M 2020 operating costs were significantly impacted by smaller volume of operations and supported by optimization initiatives.

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3.18

(0.15) 0.00

0.65

0.23 0.05 0.11 (0.00) (0.09)

3.97

(0.11)

3.86

3.18

CASK 9M 2019 Fuel Aircraft andPassengerServicing

D&A and CD* Staff SG&A Maintenance CommunicationExpenses

Other Expenses CASK 9M 2020 FX CASK 9M 2020ex. FX

CASK 9M 2019

Cost per ASK increased by 24.9% from RUB 3.18 in 9M 2019 to RUB 3.97 in 9M 2020 on the back of significant decrease in capacity and fixed costs allocated over reduced ASKs.

Group Unit Costs

21.5%(2.7)%24.9%

Capacity: ASK adjustmentUnit Costs Dynamics

Operating Expense per ASK (CASK), RUB 9M 2019 9M 2020 Change

Fuel 1.00 0.85 (15.5)%

CASK (ex. Fuel): 2.18 3.13 43.5%

Aircraft and Passenger Servicing 0.67 0.67 0.0%

D&A and Customs Duties 0.55 1.20 118.2%

Staff 0.46 0.69 49.5%

SG&A 0.15 0.21 33.8%

Maintenance 0.16 0.28 67.8%

Communication expenses 0.09 0.09 (2.2)%

Other Expenses 0.09 0.00 n/a

Total CASK 3.18 3.97 24.9%

CASK Bridge

(49.6)%

Billion ASK

RUB / ASK

145.4

73.3

9M 2019 9M 2020

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On the back of oil price weakness staring from March 2020 jet fuel prices moved towards more comfortable levels, which is supportive for the industry in the current environment.

Fuel Efficiency

(gramme / ASK)Thousand RUB per tonne of jet fuel

1

Source: Aeroflot Group1 Weighted average price for 9M (2019 and 2020) and 12M (2015-2017).

2.5%

Fuel Cost Management

31.1

33.5

2015-2017 FY weighted averages

Average fuel price per tonne

Aeroflot Airline:

• 9M 2020: 36.2 thd RUB (-17.5% yoy).

• Q3 2020: 29.8 thd RUB (-31.3% yoy).

• Sep 2020: 30.7 thd RUB (-29.1% yoy).

Aeroflot Airline Jet Fuel Price

22.3 22.9

9M 2019 9M 202036.2

43.9

30

40

50

45

35

20

25

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 9M(WA)

2020 2019

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Pobeda Financial Results

PAX Traffic and Other Operating Metrics

RASK1

CASK

Pobeda Statement of Profit and Loss (IFRS, standalone)

Q3 2019 Q3 2020 Change Million RUB 9M 2019 9M 2020 Change

19,320 15,846 (18.0)% Revenue 40,779 28,487 (30.1)%

11,920 10,480 (12.1)% Operating Expenses 32,484 24,663 (24.1)%

7,400 5,367 (27.5)%Operating Income /

(Loss)8,295 3,824 (53.9)%

38.3% 33.9% (4.4) p.p. Operating margin 20.3% 13.4% (6.9) p.p.

4,222 3,650 (13.5)%Adjusted Net

Income / (Loss)2 7,423 1,220 (83.6)%

9,483 7,632 (19.5)% EBITDA 14,173 10,383 (26.7)%

49.1% 48.2% (0.9) p.p. EBITDA margin 34.8% 36.4% 1.6 p.p.

Note: based on managerial accounts transformed under IFRS principles. Includes 12 aircraftsubleased from Aeroflot; provisions for heavy maintenance of 5 aircraft included in 2020 periods; 4 aircraft transferred to Pobeda from another company of the Group in Q3 2020 are temporarily accounted as short-term operating lease.1 Calculation based on Total Revenue of the Company2 Adjusted for (excluding) net FX loss from lease liabilities revaluation in the amount of 14.7 bn RUB

in 9M 2020 (3.8 bn RUB net FX gain in 9M 2019) and net FX loss of 7.9 bn RUB in Q3 2020 (1.2 bn RUB net FX loss in Q3 2019) in 2019 and 2020 periods and the associated deferred tax in 2020 periods; FX gain/loss eliminated in consolidated financials due to hedging of FX-denominated liabilities with FX-denominated revenues (non-cash income).

2.802.42

9M 2019 9M 2020

7.66.3

9M 2019 9M 2020

2.23 2.09

9M 2019 9M 2020

Million PAX, dynamics y-o-y

RUB / ASK, dynamics y-o-y

RUB / ASK, dynamics y-o-y

In 9M 2020 Pobeda’s result was affected by softening demand and suspension of operations for April and May.Q3 showed a sizable recovery in operating indicators vs. Q2 which supported financial results of the period.

3.0 3.4

Q3 2019 Q3 2020

(16.7)%

12.1%

3.392.63

Q3 2019 Q3 2020

(13.7)%(22.6)%

2.091.74

Q3 2019 Q3 2020

(6.2)% (17.0)%

Page 23: Q3 & 9M 2020 IFRS RESULTS

23

Liquidity

Leverage and Liquidity

Million RUB 31-Dec-2019 30-Sep-2020 Change

Borrowings 15,792 65,767 4.2x

Lease Liabilities 557,124 713,995 28.2%

Pension Liabilities 784 791 0.9%

Total Debt 573,700 780,553 36.1%

Cash and Short-Term

Investments25,861 43,088 66.6%

Net Debt 547,839 737,465 34.6%

1 30-Sep-2020 exchange rate – 79.68 RUB per USD, 31-Dec-2019 exchange rate – 61.91 RUB per USD.

Debt Profile1

Billion RUB

Amid significant pressure on revenue, management team focused its efforts on raising and accumulating liquidity.Cash position of RUB 43 billion and undrawn credit lines of RUB 148 billion.

37.4 48.7 43.1

81.3108.4

148.0

118.7

157.1

191.1

31-Mar-20 30-Jun-20 30-Sep-20

Cash and ST investments Available credit lines

Net Debt / EBITDA

3.24.4

5.8

12.6

31-Dec-2019 31-Mar-2020 30-Jun-2020 30-Sep-2020

Page 24: Q3 & 9M 2020 IFRS RESULTS

24

Optimizations with Liquidity in Focus

Reduced monthly costs Improved Operating Cash Flow Steps to improve liquidity

Billion RUB

59.3

35.9

Monthly costs inQ3'19

Monthly costs inQ3'20

Billion RUB, monthly average, includes

OPEX and net finance costs 80bn RUB

SPO proceeds

October 2020

~148 bn RUB

Available credit lines,

including facilities

backed by

state guarantees

1 Cash outflows, including cash costs, interest on lease payments (accounted as interest expense in PL) and indirect taxes (including VAT, etc.). Based on managerial accounts.

Down 40%

Improved operating cash flows in Q3 vs Q2 and reduced monthly costs of Q3 2020 supported recovery in financials.Additional liquidity raised in Q4 as well as available credit lines will facilitate further navigation through COVID-environment.

Quarterly lease payments: Q2 and Q3 trends

34.5

8.1

Q2'19 Q2'20

30.9

15.3

Q3'19 Q3'20

5.2

14.3

Q2'20 Q3'20

Up 2.7x

(26.4) bn RUB (15.6) bn RUB

~ 57 bn RUB

Accumulated PDPs to be

refunded in 2021-2023

as additional support for

liquidity

(excluding extra PDPs to

be made in 2021)

Page 25: Q3 & 9M 2020 IFRS RESULTS

25

1. Market Update and Operating Results

2. Network and Schedule Overview

3. Fleet Overview

4. Financial Performance

5. Appendix 1: Strategy 2028

6. Appendix 2

Page 26: Q3 & 9M 2020 IFRS RESULTS

26

Aeroflot Group: Now and Then

Key Strategic Goals

Key Goals of the Updated Strategy

Increase of

Aeroflot

Group’s PAX

Accelerated

development

of Pobeda Airline to

improve air travel

affordability and

stimulate demand

Stronger

position of

Aeroflot Airline

in the premium

segment due to

the Group’s

transformation

130PAX

37 35-40

10 55-65

12 20-30

2019 2028

• Optimization of the network according to routes’ yield

• Best-in-class premium quality service

• Supporting high population mobility

• Stimulating demand through more affordable ticket prices

• Operating modern Russian-manufactured aircraft

• Socially important routes, inter-regional network

Premium carrierwith international recognition, developing transit

Low-cost carrier, one of the largest and one of the most cost efficient in the world1

Regional carrier,

routes bypassing Moscow, social function and regional connectivity

PAX (mn)

m

1 Based on CASK ex.-fuel benchmarking, calculated based on airlines’ data.

Aeroflot Group updated its long term targets: the Group intends to streamline its value proposition, increase focus on LCC and further improve Aeroflot Airline’s product.

Page 27: Q3 & 9M 2020 IFRS RESULTS

27

The Group’s Target Network and Fleet Allocation

Medium-haul flights Long-haul flights

High-yield flights from Moscow

Destinations with high demand

Routes bypassing Moscow + social fares

Selected domestic routes

Key premium international routes

Domestic and international routes

New regional bases

International and domestic routes fromSt. Petersburg

Leisure destinations

Feeder traffic to Aeroflot in Moscow

Affordable domestic flights

All destinations

by 2028

~600 aircraft

Russian-manufactured aircraft

Network Fleet Network Fleet

Transfer of medium-haul aircraft to Pobeda and Rossiya and Aeroflot’s focus on long-haul aircraft will allow to strengthen specialization of the airlines, improve commonality of the fleet and value proposition.

Page 28: Q3 & 9M 2020 IFRS RESULTS

28

Global carrier with a 5-star Skytrax product

Focus on targetmarket segments

Optimized cost structure

• Skytrax 5* product

• Europe – Asia transit

• Key premium international destinations

• High-yield domestic flights

• Only markets with premium product demand

• High load factor and yield of business andeconomy class through withdrawal from low yield

markets

• Fleet of several aircraft types

• Highly efficient aircraft of new generation

• Wide-body aircraft on most destinations

Aeroflot in 2028

Aeroflot Airline’s fleet development strategy

Long-haul flights Medium-haul flights

Aeroflot Airline: 2028 Vision

Destinations with low premium product demand will be served by other carriers of the Group

Growing market with

premium product demand

Launch of new routes

Transfer of low-yield destinations to Pobeda

Focus on destinations with high demand for

business class (e.g. London, Geneva, Zurich)

and long-haul flights (e.g. Lisbon, Madrid)

2028

Decrease in aircraft types by transferring of Russian-

manufactured aircraft to Rossiya and B737-800 to Pobeda

Development of narrow-body aircraft fleet by adding

modern aircraft with higher capacity

Further wide-body aircraft fleet development

By 2028, Aeroflot Airline’s fleet will consist of only several aircraft types resulting in significant efficiency improvement

The network development (Sheremetyevo Airport)

By 2028 Aeroflot will increase efficiency and further enhance its premium level of service via streamlining its value proposition

Page 29: Q3 & 9M 2020 IFRS RESULTS

29

Pobeda in 2028

Pobeda’s fleet development strategyPobeda has become one of the most efficient low-cost carriers within only 5 years

Pobeda Airline: 2028 Vision

Pobeda is the most efficient low-cost carrier in the world based on selected performance indicators

Using modern aircraft with higher capacity will allow Pobeda to further decrease operating costs

Notes: (1) Flights in 3Q 2019, according to Boeing; (2) Operating profit margin in 2019, according to Skift; (3) Calculated based on airlines’ public data as of 2019; (4) In 2019, among non-charter carriers on the Russian market, based on public statistics

16.1 hours Global leader by aircraft utilization(1)

19 % Top-3 among global airlines by profitability(2)

25 min The fastest aircraft turnaround in Russia

6 700PAX per employee

The best productivity on the Russian market(3)

94 % The highest load factor(4)

Transfer of Boeing 737-800from the Group’s airlines to Pobeda

Further fleet development by using modern aircraft with higher capacity

Balanced growth of fleet size

1

2

3

c.30% market share in Russiawith further growth potential

More capacious aircraft of new generations will increase efficiency and decrease costs

Average ticket prices reduction by 30% on the domestic market for economy class

(not adjusted for inflation)

Affordable air travelEfficient fleetHigh market share

By 2028, Pobeda will significantly increase in size and ensure travel affordability for the Russian population via stimulating traffic and volumes backed by its operational and financial efficiency

Page 30: Q3 & 9M 2020 IFRS RESULTS

30

The largest carrier in Russia on routes

bypassing Moscow and Saint Petersburg

Leading operator of

Russian-manufactured aircraft

Fulfilling Aeroflot Group’s

social mission

Servicing inter-regional flights

from new regional bases

Creating of a system of linear stations and hangar

facilities for servicing Russian-manufactured aircraft

(also in regions)

Servicing socially significant routes

Rossiya in 2028

The key goals of Rossiya Airline strategy

Rossiya Airline: 2028 Vision

Fulfilling social functions of the Group

Establishing a center of competence for Russian-manufactured aircraft development

Network development bypassing Moscow

Feeder traffic for Aeroflot’s flights to Moscow

Rossiya will focus on the efficient development of flights bypassing Moscow as well as fulfilling the Group's social mission.

Page 31: Q3 & 9M 2020 IFRS RESULTS

31

1. Market Update and Operating Results

2. Network and Schedule Overview

3. Fleet Overview

4. Financial Performance

5. Appendix 1: Strategy 2028

6. Appendix 2

Page 32: Q3 & 9M 2020 IFRS RESULTS

32

Operating Data – Q3 & 9M 2020

UnitQ3

2019

Q3

2020Y-o-Y

9M

2019

9M

2020Y-o-Y

Q3

2019

Q3

2020Y-o-Y

9M

2019

9M

2020Y-o-Y

Passenger Traffic th PAX 10,638 3,813 (64.2%) 28,433 11,621 (59.1%) 18,533 10,129 (45.3%) 46,728 23,056 (50.7%)

International Routes th PAX 5,589 348 (93.8%) 14,907 3,827 (74.3%) 8,275 619 (92.5%) 20,957 5,185 (75.3%)

Domestic Routes th PAX 5,049 3,465 (31.4%) 13,526 7,793 (42.4%) 10,258 9,510 (7.3%) 25,771 17,871 (30.7%)

Passenger Turnover mn pkm 28,803 7,828 (72.8%) 77,622 28,962 (62.7%) 47,343 21,015 (55.6%) 120,268 53,731 (55.3%)

International Routes mn pkm 19,428 1,061 (94.5%) 52,823 13,922 (73.6%) 26,678 1,786 (93.3%) 70,209 18,630 (73.5%)

Domestic Routes mn pkm 9,375 6,766 (27.8%) 24,799 15,040 (39.4%) 20,665 19,229 (6.9%) 50,058 35,101 (29.9%)

Passenger Capacity mn ASK 33,567 10,326 (69.2%) 96,755 43,308 (55.2%) 53,497 25,324 (52.7%) 145,380 73,262 (49.6%)

International Routes mn ASK 23,028 1,590 (93.1%) 66,753 20,752 (68.9%) 30,762 2,400 (92.2%) 86,333 26,338 (69.5%)

Domestic Routes mn ASK 10,539 8,735 (17.1%) 30,002 22,556 (24.8%) 22,735 22,924 0.8% 59,047 46,925 (20.5%)

Passenger Load Factor % 85.8% 75.8% (10.0) p.p. 80.2% 66.9% (13.4) p.p. 88.5% 83.0% (5.5) p.p. 82.7% 73.3% (9.4) p.p.

International Routes % 84.4% 66.8% (17.6) p.p. 79.1% 67.1% (12.0 p.p.) 86.7% 74.4% (12.3) p.p. 81.3% 70.7% (10.6) p.p.

Domestic Routes % 89.0% 77.5% (11.5) p.p. 82.7% 66.7% (16.0 p.p.) 90.9% 83.9% (7.0) p.p. 84.8% 74.8% (10.0) p.p.

Tonne-Kilometres mn tkm 2,849 853 (70.1%) 7,698 3,144 (59.2%) 4,613 2,129 (53.8%) 11,767 5,563 (52.7%)

International Routes mn tkm 1,935 163 (91.6%) 5,278 1,568 (70.3%) 2,607 231 (91.1%) 6,898 2,020 (70.7%)

Domestic Routes mn tkm 914 690 (24.5%) 2,420 1,575 (34.9%) 2,007 1,898 (5.4%) 4,869 3,543 (27.2%)

Revenue Flights flights 76,424 32,615 (57.3%) 218,987 112,690 (48.5%) 122,140 70,900 (42.0%) 337,423 191,834 (43.1%)

International Routes flights 37,106 2,527 (93.2%) 107,210 33,381 (68.9%) 50,639 3,576 (92.9%) 141,691 41,683 (70.6%)

Domestic Routes flights 39,318 30,088 (23.5%) 111,777 79,309 (29.0%) 71,501 67,324 (5.8%) 195,732 150,151 (23.3%)

Flight Hours hours 216,015 75,506 (65.0%) 626,178 299,202 (52.2%) 333,413 167,993 (49.6%) 927,336 493,208 (46.8%)

Aeroflot Airline Aeroflot GroupIndicators

Page 33: Q3 & 9M 2020 IFRS RESULTS

33

Operating Data of Subsidiary Airlines – Q3 & 9M 2020

Indicators Pobeda AuroraRossiya

Q3

2020Y-o-Y

9M

2020Y-o-Y

Q3

2020Y-o-Y

9M

2020Y-o-Y

Q3

2020Y-o-Y

9M

2020Y-o-Y

Passenger Traffic th PAX 2,685 (38.2%) 4,512 (52.2%) 3,378 12.1% 6,312 (16.7%) 252 (53.1%) 611 (52.2%)

International Routes th PAX 191 (90.1%) 761 (80.8%) 78 (87.0%) 526 (69.8%) 1 (99.4%) 72 (79.0%)

Domestic Routes th PAX 2,494 3.8% 3,751 (31.4%) 3,300 37.0% 5,786 (0.9%) 251 (36.9%) 540 (42.5%)

Passenger Turnover mn pkm 7,096 (42.1%) 13,002 (52.0%) 5,740 4.5% 10,924 (20.2%) 351 (56.1%) 843 (54.6%)

International Routes mn pkm 531 (90.6%) 3,409 (73.8%) 192 (86.5%) 1,191 (69.4%) 1 (99.5%) 109 (77.3%)

Domestic Routes mn pkm 6,565 (0.9%) 9,594 (31.9%) 5,548 36.3% 9,734 (0.6%) 350 (41.6%) 734 (46.6%)

Passenger Capacity mn ASK 8,370 (36.9%) 16,563 (47.4%) 6,028 5.9% 11,780 (19.0%) 600 (38.1%) 1,611 (37.4%)

International Routes mn ASK 598 (90.0%) 4,023 (72.4%) 208 (86.1%) 1,349 (68.5%) 4 (98.3%) 215 (69.8%)

Domestic Routes mn ASK 7,772 6.7% 12,540 (25.8%) 5,820 38.7% 10,431 1.5% 596 (16.2%) 1,397 (25.0%)

Passenger Load Factor % 84.8% (7.5) p.p. 78.5% (7.5) p.p. 95.2% (1.3) p.p. 92.7% (1.4) p.p. 58.5% (24.0) p.p. 52.3% (19.8) p.p.

International Routes % 88.8% (5.2) p.p. 84.7% (4.4) p.p. 92.7% (2.7) p.p. 88.3% (2.8) p.p. 23.9% (53.5) p.p. 50.9% (16.8) p.p.

Domestic Routes % 84.5% (6.4) p.p. 76.5% (6.8) p.p. 95.3% (1.6) p.p. 93.3% (2.0) p.p. 58.7% (25.6) p.p. 52.5% (21.3) p.p.

Flight Hours hours 42,426 (34.5%) 88,696 (45.9%) 41,810 5.5% 82,603 (19.4%) 8,251 (36.5%) 22,607 (35.2%)

Page 34: Q3 & 9M 2020 IFRS RESULTS

34

Source: Aeroflot Group

Passenger and Cargo Operating Numbers

ASK

PLF

Total Domestic Cargo

15.0 13.812.1

1.6 1.63.9

7.69.2 8.5

7.1

2%

4%

(20)%

(90)%

(90)%

(78)%

(58)%

(49)%

(50)%

(56)%

Jan Feb Mar Apr May Jun Jul AugSep Oct

ASK, bn %, y-o-y

6.0 5.5 6.0

1.5 1.53.7

7.4 8.3 7.35.8

6%

6%

5%

(76)%

(78)%

(50)%

(5)%

6%

1%

(8)%

Jan Feb Mar Apr May Jun Jul AugSep Oct

ASK, bn %, y-o-y

75%74%63%

35%45%

61%79%

86%84%78%

(1) (3) (18) (45) (32) (23)(11) (4) (2) (5)

Jan Feb Mar Apr May Jun Jul AugSep Oct

PLF y-o-y change (p.p.)

73%76%65%

34%44%

62%80%

88%84%78%

(3) (2) (16)

(47) (36)(25) (14)

(5) (3) (7)

Jan Feb Mar Apr May Jun Jul AugSep Oct

PLF y-o-y change (p.p.)

deployed for cargo transportation

Wide-body

aircraft

vs. PAX transportation

Cargo more

resilient

23.425.4

23.7

8.7

11.9 12.9

17.820.5

21.823.7

Jan Feb Mar Apr May Jun Jul AugSep Oct

thousand tons of cargo and mail

Gradual addition of capacity in domestic segment was aligned with higher demand for flights starting from June.

Aeroflot deployed wide-body passenger aircraft for cargo transportation in order to support financial results.

Page 35: Q3 & 9M 2020 IFRS RESULTS

35

14.08.4

25.3

18.018.2

13.6

9M 2019 9M 2020

7.7 mln65.3%

0.9 mln8.2%

1.1 mln9.2%

2.0 mln17.3%

Point-to-pointInternational - InternationalInternational - Domestic / Domestic - InternationalDomestic - Domestic

4.1

0.9

0.2

0.1

4.3

1.0

9M 2019 9M 2020

Aeroflot Domestic and International Transit

… Results into a Flexible Approach to Transit Flows

Increase in International – International Traffic2

Growing Connectivity of Aeroflot Airline’s Flights1 ...

Source: Aeroflot Group.1 Data for Aeroflot airline’s own flights.2 From 2018 total international-international transit figures include Rossiya airline passenger traffic of the segment.

… Backed by expansion of international network …

4.44.8

5.3

0.03

0.2

4.44.8

5.5

2017 2018 2019Aeroflot Rossiya

Total int. – int. transit traffic, million PAX (Aeroflot and Rossiya flights)

(75.8)%

6 from winter ‘18/19 2 from summer ‘19

BukharaUzbekistan

DenpasarIndonesia

DublinIreland

LjubljanaSlovenia

OshKyrgyzstan

ColomboSri Lanka

MarseilleFrance

PalmaSpain

Share of international-international transit in total traffic of Aeroflot Group2

8.8% 8.7% 9.0% 9.1% 4.5%

21.8x 20.7x

Transit traffic segment experienced significant pressure from COVID-related decrease in demand in 9М 2020.

13.1 13.9 14.1

24.225.5 25.3

17.018.0 18.2

21.2x 22.0x 23.6x

2017 2018 2019

International Domestic Combined Connectivity ratio

Page 36: Q3 & 9M 2020 IFRS RESULTS

36

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

9M 2020 Operating Data by Region (Scheduled Routes)

Americas Russia CIS

Europe Middle East Asia

Group operations in all regions of the world experienced significant pressure from COVID-related decline in demand.

(74.2)% (74.2)% (69.2)%

(13.6) p.p.

Passengerscarried

RPK ASK PLF

(33.4)% (33.3)%(23.5)%

(10.9) p.p.

Passengerscarried

RPK ASK PLF(77.0)% (76.2)% (71.5)%

(13.7) p.p.

Passengerscarried

RPK ASK PLF

(76.9)% (77.5)% (73.1)%

(12.7) p.p.

Passengerscarried

RPK ASK PLF

(62.9)% (64.2)% (58.8)%

(10.4) p.p.

Passengerscarried

RPK ASK PLF (69.5)% (68.0)% (64.5)%

(7.8) p.p.

Passengerscarried

RPK ASK PLF

Page 37: Q3 & 9M 2020 IFRS RESULTS

37

Well-balanced fleet structure in line with Group’s strategy

Aircraft TypeOperated by Total as of Total as of Change vs.

Aeroflot Subsidiaries 30-Sep-20 31-Dec-19 31-Dec-19

Wide-body 37 19 56 59 (3)

Airbus A330 17 - 17 21 (4)

Airbus A350 1 - 1 - 1

Boeing 777 19 10 29 29 -

Boeing 747 - 9 9 9 -

Narrow-body (medium-haul) 153 82 235 238 (3)

Airbus A319- 30 30 30 -

Airbus A32073 6 79 82 (3)

Airbus A32133 - 33 33 -

Boeing 73747 46 93 93 -

Narrow-body (regional) 54 12 66 62 4

DHC 8 - 9 9 10 (1)

DHC 6 - 3 3 3 -

SSJ 10054 - 54 49 5

Total fleet 244 113 357 359 (2)

Aeroflot Group Fleet Breakdown

Aeroflot Group Fleet Overview Breakdown by Aircraft

Breakdown by Company

Narrow-body

(medium-haul)66%

Narrow-body

(regional) 18%

Wide-body16%

Aeroflot68%

Rossiya16%

Aurora6%

Pobeda10%

Page 38: Q3 & 9M 2020 IFRS RESULTS

38

In 9M 2020 revenue from scheduled passengers decreased by 58% on the back of softer demand in all regions of operations due to COVID-19.

Traffic Revenue Analysis – Q3 and 9M 2020

Q3 2019 Q32020 Y-o-Y Region9M

2019

9M

2020Y-o-Y

9M 2020

% of sch.

revenue

79,918 56,476 (29.3)% Russia 182,340 110,432 (39.4)% 61.6%

45,907 2,113 (95.4)% Europe 114,149 27,112 (76.2)% 15.1%

21,941 844 (96.2)% Asia 65,567 21,061 (67.9)% 11.7%

7,777 590 (92.4)% CIS 20,658 4,850 (76.5)% 2.7%

9,659 657 (93.2)%North and Central

America23,198 5,944 (74.4)% 3.3%

11,258 4,172 (62.9)%Middle East and

Africa25,269 9,956 (60.6)% 5.6%

176,460 64,852 (63.2)% Total 431,181 179,355 (58.4)% 100.0%

1 Data presented based on management accounts2 Data presented based on management accounts for Aeroflot airline and routes of subsidiary airlines under commercial management of Aeroflot

Q3 2019 Q32020 Y-o-Y Segment9M

2019

9M

2020Y-o-Y

9M 2020

% of revenue

82,463 63,514 (23.0)% Domestic 187,985 119,140 (36.6)% 61.5%

107,860 10,470 (90.3)% International 274,049 74,435 (72.8)% 38.5%

190,323 73,984 (61.1)% Total 462,034 193,575 (58.1)% 100.0%

Traffic Revenue Breakdown by Type

Scheduled Traffic Revenue by POS2

Revenue from Scheduled Passengers (RUB mln)1

Total Passenger Revenue (Scheduled + Charter, RUB mln)

Sheduled Passenger Flights 85.1%

Charter Passenger Flights 6.8%

Cargo 8.1%

Sales abroad15.2%

Online39.8%

Call center and own branches4.7%

Sales in Russia40.3%

Page 39: Q3 & 9M 2020 IFRS RESULTS

39

3.18 3.17 3.18

2.54

2.832.64

Domestic International Total

3.763.90 3.84

3.39

4.00

3.60

Domestic International Total

RUB RUB

3.2%0.7% 1.1%Q3 Yield (Scheduled + Charter PAX Revenue / RPK) Q3 RASK (Scheduled + Charter PAX Revenue / ASK)

RUB / RPK RUB / ASK

% Y-o-Y increase 2019 2020 % Y-o-Y increase 2019 2020

RUB RUB

3.2%0.7% 1.1%9M Yield (Scheduled + Charter PAX Revenue / RPK) 9M RASK (Scheduled + Charter PAX Revenue / ASK)

RUB / RPK RUB / ASK

Source: Aeroflot GroupNote: Data presented based on management accounts, scheduled and charted passenger flights revenue is used for calculations

Aeroflot Group Blended Flights Revenue Units

Negative though improving through the quarter yield dynamics in domestic segment due to extra capacity in the market

and positive trends in international due to currency factor and extreme limitations on flights.

(9.6)%(6.2)%

2.4%(20.2)% (16.9)%(11.0)%

3.99 4.04 4.02

3.30

5.86

3.52

Domestic International Total

3.63 3.51 3.56

2.77

4.36

2.92

Domestic International Total

(17.2)% (12.4)%

45.0%

(23.6)% (17.9)%

24.4%

Page 40: Q3 & 9M 2020 IFRS RESULTS

40

3.994.12 4.07

3.80

4.203.96

Domestic International Total

3.28 3.25 3.26

2.562.85

2.68

Domestic International Total

RUB RUB

3.2%0.7% 1.1%Q3 Scheduled Yield ex. Pobeda (PAX Revenue / RPK) Q3 Scheduled RASK ex. Pobeda (PAX Revenue / ASK)

RUB / RPK RUB / ASK

% Y-o-Y increase 2019 2020 % Y-o-Y increase 2019 2020

RUB RUB

3.2%0.7% 1.1%9M Scheduled Yield ex. Pobeda (PAX Revenue / RPK) 9M Scheduled RASK ex. Pobeda (PAX Revenue / ASK)

RUB / RPK RUB / ASK

Source: Aeroflot GroupNote: Data presented based on management accounts, scheduled flights revenue is used for calculations

Aeroflot Group Scheduled Flights Revenue Units

ex. Pobeda

Negative though improving through the quarter yield dynamics in domestic segment due to extra capacity in the market

and positive trends in international due to currency factor and extreme limitations on flights.

(4.9)%(2.7)%

1.9%(21.9)% (17.9)%(12.5)%

4.15 4.33 4.253.66

7.83

3.99

Domestic International Total

3.70 3.65 3.67

2.83

5.10

3.04

Domestic International Total

(11.7)% (6.1)%

80.9%

(23.6)% (17.3)%

39.7%

Page 41: Q3 & 9M 2020 IFRS RESULTS

41

Key driver of EBITDA adjustment was a decrease in size and scale of operations on the back of COVID-related pressure on demand as well as negative FX influence.

141,675

(244,903)

(21,135)

(24,768)

1,036 (5,841)

84,409 16,773

49,622 7,270 5,913 7,574

13,555

31,180

EBITDA 9M

2019

Volume Pricing Other FX benefit on

revenue

FX drag on

costs

Fuel* Staff* Aircraft and

PAX*

Comm.

Expenses*

Maintenance* Admin & Sales &

Marketing*

Other OPEX* EBITDA 9M

2020

EBITDA Evolution

* Excluding currency impact

Total effect on revenue

∑=(289,770) RUB mlnTotal effect on costs

∑=179,275 RUB mln

Net volume and price effect

∑=(290,806) RUB mln

Net FX effect

∑=(4,805) RUB mlnNet volume and price effect

∑=185,116 RUB mln

Page 42: Q3 & 9M 2020 IFRS RESULTS

42

Operating and Free Cash Flow remained under pressure in 9M 2020 due to demand pressure and adjustment of operating program.

Operating and Free Cash Flows

87,936

(100,710)

87,525

33,534 2,077 4,285

26,711

6,589

33,300

(12,078)

(597) (5,168)1,834

17,291

Loss BeforeIncome Tax

D&A InterestExpense

Unrealized NetFX Gain

Other Adj.Before

WorkingCapital

Changes

Cash FlowsFrom

OperatingActivitiesBefore

WorkingCapital

Changes

WorkingCapital

Changes andIncome Tax

Net CashFlows FromOperatingActivities

Purchase ofPPE &

CapitalizedExpenses

DepositPlacement and

Return

Net Pre-delivery

Payments forAircraft

Net LeaseDeposits for

a/c and Other

Free CashFlow 9M 2020

Free CashFlow 9M 2019

Page 43: Q3 & 9M 2020 IFRS RESULTS

43

Aeroflot Group’s headcount decreased by 5.9% vs. December 31, 2019.

31-Dec-2019 30-Sep-2020 %

Flight crew 4,596 4,598 0.0 %

Cabin crew 12,822 12,285 (4.2)%

Other airline personnel (incl. airlines’ head office) 16,885 16,188 (4.1)%

Other non-airline subsidiaries’ personnel 6,993 5,809 (16.9)%

Total1 41,296 38,880 (5.9)%

(36.0)%

Million RUB per employee, annualized to 30.09.2020 Passengers per employee, annualized to 30.09.2020

(40.1)%

1 Aeroflot Aviation School headcount is included in Other non-airline subsidiaries’ personnel

Headcount Overview

Aeroflot Group Headcount

Traffic Revenue / Average Airlines’ Headcount PAX Traffic / Average Airlines’ Headcount

Headcount by Category

Flight crew11.8%

Cabin crew31.6%

Other airline personnel

41.6%

Other non-airline personnel

14.9%

17.0

10.2

30.09.2019 (LTM) 30.09.2020 (LTM)

1,692

1,083

30.09.2019 (LTM) 30.09.2020 (LTM)

Page 44: Q3 & 9M 2020 IFRS RESULTS

Personnel and Remuneration

Committee

(3 members)

Audit Committee

(3 members)

Strategy Committee

(8 members)

NameAudit

Committee

Personnel and

Remuneration

Committee

Strategy

Committee

Vitaly Saveliev Chairman

Mikhail Poluboyarinov

Maksut Shadayev

Igor Kamenskoy Member Chairman Chairman

Yaroslav Kuzminov Member Member

Maksim Liksutov

Roman Pakhomov Chairman Member Member

Dmitry Peskov Member

Evgeny Ditrich

Yuri Slyusar Member

Sergey Chemezov

Independent director according to the Russian Corporate Governance Code 44

Board of Directors

Corporate Governance Board of Directors

Executive Board

General Meeting of Shareholders

Board of Directors

Incorporated in Russia, PJSC Aeroflot is subject to

Russian corporate governance regulations and

follows Russian Corporate Governance Code

The Board of Directors is currently composed

of 11 members. The Board’s composition is well

balanced from the members’ background perspective.

Page 45: Q3 & 9M 2020 IFRS RESULTS

PJSC Aeroflot

JSC Rossiya Airlines 75%-1 sh.

LLC Pobeda Airlines 100%

JSC Aurora Airlines 51%

JSC Aeromar

On-board sales/catering51%

LLC Aeroflot-Finance

Financial services100%

JSC Sherotel

Hotel services100%

Aeroflot Aviation School

Education services100%

Note: The Group structure as at 30 September 2020; Aeroflot Group consolidates all entities: PJSC Aeroflot and all subsidiaries.

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).

LLC A-Technics

Maintenance 100%

45

Aeroflot Group Structure

Airlines Ancillary Companies

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.

Page 46: Q3 & 9M 2020 IFRS RESULTS

Address: 119019, Russia, Moscow, Arbat St. 1

E-mail: [email protected]

Website: www.aeroflot.ru

Investor Relations Contacts