Q3 AND 9M 2019 IFRS RESULTS - Aeroflot...2019/11/29 · 3 Aeroflot Group 9M 2019 Highlights 145.4...
Transcript of Q3 AND 9M 2019 IFRS RESULTS - Aeroflot...2019/11/29 · 3 Aeroflot Group 9M 2019 Highlights 145.4...
A E R O F L O T G R O U PQ3 AND 9M 2019 IFRS R ESULTS
29 November 2019
Speakers:
Andrey Chikhanchin – Deputy CEO for Commerce and Finance
Andrey Panov – Deputy CEO for Strategy, Service and Marketing
Ivan Batanov – Head of Revenue Management
2
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
3
Aeroflot Group 9M 2019 Highlights
145.4 bn
129.4 bn42.2 mln
PAX
+ 10.6 %
ASK
+ 12.4 % + 12.4 %
466 bn524 bn
Revenue (RUB)
9M 2018 9M 2019
¹ Immaterial deviations throughout the presentation are explained by rounding
• In 9M 2019 Aeroflot Group has continued operational development via expanding capacity onthe back of opportunities provided by the market.
• Amid double-digit capacity growth which allowed the Group to significantly increase number ofpassengers transported, Aeroflot managed to improve yields and boost revenues y-o-y.
46.7 mln
+ 1.6 %
3.783.84
Blended Yield (RUB)
4
1. Market Update and Operating Results
2. Network and Schedule Overview
3. Fleet Overview
4. Financial Performance
5. Appendix
5
41.0%
12.1%6.5%5.6%
13.0%
21.8%
39.9%
11.6%6.6%5.6%
15.8%
20.6%
46.7
13.87.4 6.3
14.9
24.9
AeroflotGroup
S7 Group Ural Airlines UTair Group ForeignCarriers
Others
9.7 10.3
7.7 8.3
17.4 18.5
Q3 2018 Q3 2019
23.5 25.8
18.821.0
42.246.7
9M 2018 9M 2019
52.7 56.3
53.2 57.7
105.9 114.0
9M 2018 9M 2019
22.0 23.1
23.2 24.8
45.247.8
Q3 2018 Q3 2019
International Routes
Domestic Routes
Source: TCH, Company estimates. Figures include foreign carriers’ traffic.
Passenger Traffic: Market vs Aeroflot Group Change in Airlines’ Passenger Numbers
mln PAX, 9M 2019
9M 2018
Growing Market Share (PAX)
9M 2019
+4.5
+1.6
+0.4
+3.0
Change in PAX million
Source: TCH, Rosaviatsia, Company estimates / 1 UTair Group calculation in 2019 includes Utair and Utair-
Cargo, in 2018 includes UTair, Utair-Cargo and Turukhan
Foreign Airlines Other Russian Airlines
+1.1 p.p.
6.6%
5.8%
7.5%
5.0%
6.9%
5.6% Total Market 5.6%
6.7% International 6.6%
4.4% Domestic 4.3%
Russian Air Transportation Market (million PAX)
incl. PAX of Russian and Foreign Carriers and intl. transit PAX
Aeroflot Group (million PAX)
6.8%
8.5%
9.7%
11.7%
Market Dynamics Net of Aeroflot Group
• Aeroflot Group continued to deliver growth increasing PAX by 6.6% in 9M 2019 expanding market share.
7.6%
“Clean” Market Share of Aeroflot Group (Net of Intl.-Intl. Transit Traffic)
37.7% Aeroflot Group 38.7%
1
+0.4
-1.9
5.9%
10.6%
Competitive Dynamics
6
Aeroflot Group Multi-Brand Strategy
1.3 1.3
60.8%
• Flagship carrier
• Premium product (4 Stars)
• High income and middle class
• Hub and spoke model
• Scheduled network operated
under SU (Aeroflot) code
• Scheduled flights from
Moscow are integrated in
Aeroflot network in SVO
• Charter operations
Premium
Regional and Charter
Regional / Far-East
Low Cost
Business Model Focus Airport PAX Contribution1Brand PAX Growth
9M 2019
26.828.4
28.4
+6.2%
9.0 9.4
5.27.6
4.3%
+46.4%
+1.9%
9M 2018 9M 2019
9M 2018 9M 2019
9M 2018 9M 2019
9M 2018 9M 2019
20.2%
16.2%
2.7%
9.4
7.6
1.3
• Moscow
(Sheremetyevo)
• Saint-Petersburg
(Pulkovo)
• Moscow
(Sheremetyevo,
Vnukovo)
• Vladivostok,
Khabarovsk,
Yuzhno-Sakhalinsk
• Moscow (Vnukovo)
• Flights from the
regions
• Short and mid-haul flights
• Focus on domestic
segment,
• Popular underserved
international routes
• Point-to-point carriage
• The Far East airline flying on
short- and mid-haul direct
international and domestic
routes
• Flights to remote cities (local
flights)
• Multi-brand product offering to capture customers in every market segment: from premium to low-cost.
• Aeroflot and Pobeda – key engines of the Group – increased traffic by 1.6 and 2.4 million PAX respectively.
1 PAX contribution as of 9M 2019. Absolute number of passengers in million in green circle.
7
92.5% 92.6%
96.5%94.1%
Q1 Q2 Q3 9M
1,4021,755 2,021
5,178
2,0402,527
3,015
7,582
Q1 Q2 Q3 9M
2018 2019
62
Krasnodar
Rostov
NazranMakhachkala
Astrakhan
Volgograd
KazanPerm
Chelyabinsk
Ekaterinburg
Surgut
Novosibirsk
Bergamo
Bratislava
Cologne
Memmingen
Girona
Samara
Cheboksary
Larnaca
Tivat
Saint Petersburg14
Nizhnekamsk
Moscow
Vladikavkaz
Network • Operating from Vnukovo airport (3rd Moscow airport by PAX)
• Network comprising 108 routes (62 unique for the Group)
Fleet• 30 Boeing 737-800 NG (30.09.2019)
• Single class cabin with 189 seats per plane
Key features
and
achievements in
9M 2019
• 7.6 million PAX in 9M 2019 (+46.4% y-o-y)
• 9M 2019 PLF of 94.1%
• International RPK is 28% of total Pobeda traffic
• Intra-region and international flights from the regions development
2023 Goals• Accelerated expansion in domestic and international segments
• c25-30 mln PAX annually
Strong Passenger Load Factor
Overview of Pobeda
• Pobeda, the only Russian LCC, is a timely value proposition to cost conscious passengers.
Growing Passenger Flows
thousand PAX
Pobeda’s Network
PLF, %
Tbilisi
Krasnoyarsk
Pisa
Base cities with >10 routes served from city
(number of routes in circle)
Baden-Baden
Ulan-Ude
45.5%44.0%
46.4%
Karlovy VaryLeipzig
Venice
Kaliningrad
Eindhoven
Helsinki
Innsbruck
Kemerovo
Salzburg
Berlin
Rome
Kirov
Min.Vody
Petrozavodsk
Tomsk
XXCities with <10 routes served from city
Cities where the airline operates to
Anapa
AntalyaBodrum
Bari
Cagliari
CataniaDalaman
Gelendzhik SochiGenova
Gazipaşa
Istanbul Gyumri
Omsk
Ostende
Palermo
Riga
Rimini
TyumenUlyanovsk
Varna
Batumi
Magnitogorsk
12
Pobeda Airline: Acceleration of Growth
49.2%
8
14.0 14.0
25.5 25.3
18.1 18.2
22.6x 21.8x
9М 2018 9М 2019
12.5 13.113.9
23.124.2
25.5
16.217.0
18.0
19.1x 21.2x 22.0x
2016 2017 2018
International Domestic Combined
17.1 mln59.5%
4.1 mln14.7%
4.4 mln15.6%
2.9 mln10.2%
Point-to-pointInternational - InternationalInternational - Domestic / Domestic - InternationalDomestic - Domestic
3.74.4
4.8
3.64.1
2016 2017 2018 9М 2018 9М 2019
Aeroflot Airline Domestic and International Transit
Share of international-international transit in total traffic of Aeroflot Airline
13.1% 13.6% 13.6% 13.6% 14.7%
Increase in International – International Traffic
Average weekly frequency per route – Aeroflot airline Considerable share of transit of Aeroflot airline in SheremetyevoGrowth
9M 2019
… Results into a Flexible Approach to Transit FlowsGrowing Connectivity of Aeroflot Airline’s Flights1 ...
Total Aeroflot airline int. – int. transit traffic, million PAX (Aeroflot flights only)
13.8%
Key International Transit Markets
Connectivity ratio
0.1%
0.3%
(0.8)%
Total 9M 2019
traffic:
28.4 million pax
NEA
SWA
SEA
ME
WE
EE
NA
Source: Company data.1 Data for Aeroflot airline’s own flights
• 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.
9
1. Market Update and Operating Results
2. Network and Schedule Overview
3. Fleet Overview
4. Financial Performance
5. Appendix
10
13.111.0
15.213.6
8.2
14.0
11.3
17.1
14.7
8.4
Total scheduled International Domestic Medium-haul Long-haul
9M 2018 9M 2019
Aeroflot routes
Rossiya routes
Aurora routes
Average Scheduled Flight Frequency per Route (Aeroflot Group ex-Pobeda)
• Accelerated growth of destinations, sustained focus on increase in frequencies on scheduled routes.
• Aeroflot Group operates flights to 187 unique destinations in 57 countries (in 2019 summer schedule, incl. Russia).
(9M 2019, y-o-y)
Note: 1 Scheduled flights of Aeroflot Group (excluding Pobeda LCC)
7.0%3.0%
12.3%7.7%
1.6%
# of Flights Evolution by Region1
Increase in Group frequencies by 7.0% was mainly supported by expansion of the number of frequencies in domesticsegment (+12.3%) and in the sector of medium-haul routes (+7.7%).
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
Geographic Network
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
6.7 %
14.6 %
1.8 %
(6.8)%
14.3 %
8.8 %
5.2 %
Total
Middle East & Africa
CIS
North & Central America
Asia
Europe
Russia
11
3.01
3.363.213.17 3.24 3.21
Domestic International Total
3.52
4.18
3.883.76
4.073.93
Domestic International Total
3.49
3.863.693.64 3.65 3.65
Domestic International Total
3.77
4.47
4.144.024.30
4.17
Domestic International Total
• Competitive positioning, adjustment of fuel surcharges, changing mix of operations at subsidiaries’ level due to
rapid expansion of LCC and high base of previous year affected RUB yields in 9M 2019.
Note: Data presented based on management accounting figures, scheduled flights revenue is used for calculations.
% Y-o-Y increase 2018 2019
Q3 Yield (PAX Revenue / RPK)
RUB
Q3 RASK (PAX Revenue / ASK)
RUB
0.7% 4.4%(1.1)%(3.9)%
(5.3)%
6.6%
Aeroflot Group Scheduled Flights Revenue Units
9M Yield (PAX Revenue / RPK)
RUB
9M RASK (PAX Revenue / ASK)
RUB
1.4%5.3%
0.1%
(2.6)%(3.6)%
6.9%
12
0.4%
4.4%
7.7%
5.1%
6.2%
17.2%
8.2%
4.6%
7.5%
Jan Feb Mar Apr May Jun Jul Aug Sep
9.3%
5.2%
4.3%
5.8%
7.9%
(6.6)%
(0.6)%
6.4%
3.7%
Aeroflot Airline Total Yield, 2019
Aeroflot Airline Yield Dynamics (Monthly)
RUB/RPK, Change y-o-y in %
Aeroflot Airline Total Yield, 2018
• Aeroflot airline yields showed significant improvement on a monthly basis throughout 9M 2018 and 9M 2019 (y-o-y).
• June and July 2018 represented high base for further yield increases in 2019 which resulted into adjustment of 2019
yields in the respective months exacerbated in international segment by exchange rate dynamics of 2019.
RUB/RPK, Change y-o-y in %
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)
Jan Feb Mar Apr May
Jun Jul
Aug Sep
13
1. Market Update and Operating Results
2. Network and Schedule Overview
3. Fleet Overview
4. Financial Performance
5. Appendix
14
• Aeroflot Group continues to intelligently manage capacity additions and develop its fleet taking into account market
trends and opportunities.
Delivery/Phase-out Schedule1
Type of
aircraft
9M 2019 Fleet as at
30.09.20191
Q4 2019E
Delivery Phase out Delivery Phase out
Wide-body (long-haul) 2 - 60 - (3)
A-330 - - 22 - (3)3
B-777 2 - 29 - -
B-747 - - 9 - -
Narrow-body (medium-haul) 7 (9) 242 - (6)
A-319 - (4) 31 - (1)
A-320 1 (2) 84 - (4)
A-321 - (3) 34 - (1)
B-737 6 - 93 - -
Narrow-body (regional) - (2) 62 10 (1)
SSJ-1002 - (1) 49 10 -
DHC-8 - (1) 10 - (1)
DHC-6 - - 3 - -
TOTAL 9 (11) 364 10 (10)
1 As of 30.09.2019, not including aircraft leased or subleased to other operators.2 Additions are subject to corporate approval.3 Aircraft taken out of rotation and currently undergoing redelivery checks before being handed back to the lessor.
Fleet Plan
15
1. Market Update and Operating Results
2. Network and Schedule Overview
3. Fleet Overview
4. Financial Performance
5. Appendix
16
Financial Highlights: 9M 2019
• Financial results of 9M 2019 are impacted by high base of previous year as well as continuing fuel and
aircraft and passenger servicing costs pressure.
• IFRS 16 implementation also resulted in major changes on the EBITDA, Operating and Net Loss lines.
• Restated bottom line figure in 9M 2018 is connected with FX revaluation of operating lease liabilities on the
balance sheet as hedge accounting has been implemented prospectively starting from January 1, 2019.
1 Restated financial results presented based on IFRS 16 full retrospective application where applicable. Q3 and 9M 2019 presented based on IFRS 16 full retrospective application.
Q3 2018
restated1 Q3 2019 ChangeRUB mln
(where applicable)
9M 2018
restated1 9M 2019 Change
17,393 18,533 6.6% Passenger Traffic (mln PAX) 42,249 46,728 10.6%
200,523 212,543 6.0% Revenue 466,345 523,983 12.4%
177,622 190,323 7.2% PAX Traffic Revenue 409,974 462,034 12.7%
73,727 73,379 (0.5)% EBITDA 132,741 141,675 6.7%
36.8% 34.5% (2.3) p.p. EBITDA margin 28.5% 27.0% (1.5) p.p.
49,514 47,077 (4.9)% Operating Income 66,967 61,695 (7.9)%
12,997 29,089 >2x Net Income/(Loss) (17,382) 20,305 n/a
(14,825)Loss on FX (Operating Lease Aircraft
Liabilities Revaluation) After Tax(42,323)
27,822 29,089 4.4% Adjusted Net Income/(Loss) (ex. Loss on FX) 24,941 20,305 (18.6)%
17
466,345
39,231 9,283 8,025 1,099 523,983
9M 2018 Volume Currency Pricing Other 9M 2019
466,345
51,773 287 774 4,804 523,983
9M 2018 ScheduledPassenger
Flights
CharterPassenger
Flights
Cargo OtherRevenue
9M 2019
• Positive contribution of volume and pricing as well as 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
Revenue by Key Factors
RUB mln
12.4% 12.4%
Revenue by Business Segments
RUB mln
11.1% 0.1% 0.2% 1.0%+ + +
Growth in operating metrics:RPK + 10.9%PAX + 10.6%
Depreciation of RUB in 9M 2019 y-o-y by c6% vs. USD and flat vs. EUR
Growth across geographies:Russian revenue +17.0%International revenue +11.3%
Currency effect on other revenue
Domestic yield up by6.5%, international yieldunder pressure y-o-y
8.4% 2.0% 1.7% 0.2%+ + +
Revenue Growth Decomposition
18
Operating Costs
Q3 2018
restated1 Q3 2019Change
y-o-y
Change
ex. FX
Operating Expense
(RUB mln If not stated
otherwise)
9M 2018
restated1 9M 2019Change
y-o-y
Change
ex. FX
% of Total OpEx
(9M 2019)
54,080 52,861 (2.3)% (1.7)% Fuel 131,965 145,569 10.3% 8.4% 31.5%
96,929 112,605 16.2% 16.5% Opex (ex. Fuel) 267,413 316,719 18.4% 17.1% 68.5%
31,648 35,728 12.9% 15.2%Aircraft and passenger
servicing80,281 96,893 20.7% 20.2% 21.0%
24,213 26,302 8.6% 8.6% D&A and customs duties 65,774 79,980 21.6% 21.6% 17.3%
19,548 22,065 12.9% 13.3% Staff 60,846 66,859 9.9% 9.8% 14.5%
6,766 8,278 22.3% 16.5% SG&A2 19,858 22,481 13.2% 9.2% 4.9%
6,457 9,955 54.2% 48.1% Maintenance 16,558 23,942 44.6% 36.6% 5.2%
1,508 2,449 62.4% 62.6% Short-term and variable leases 4,232 5,758 36.1% 29.0% 1.2%
6,789 7,828 15.3% 19.2% Other expenses3 19,864 20,806 4.7% 1.1% 4.5%
151,009 165,466 9.6% 10.0% Total Opex 399,378 462,288 15.8% 14.2% 100.0%
• In 9M 2019 operating costs were significantly impacted by expansion of operations with fuel, aircraft and passenger
servicing and maintenance being the key contributors to growth.
• Lease, amortization, maintenance and other lines have been affected by IFRS 16 implementation.
1 Restated financials presented based on IFRS 16 full retrospective application. Q3 and 9M 2019 presented based on IFRS 16 full retrospective application.2 Includes sales and marketing expenses and administration and general expenses.3 Other expenses include Global Distribution Systems cost, reserves accrual and reversal, catering expenses, banks’ commissions and other operating income and loss.
19
3.09
(0.02) 0.05 0.04 (0.01) 0.00
0.04 0.01 (0.01)
3.18
(0.04)
3.14 3.09
Restated CASK9M 2018
Fuel Aircraft andPassengerServicing
D&A and CD* Staff SG&A Maintenance Short-term andImmaterial Lease
Other Expenses CASK 9M 2019 FX CASK 9M 2019ex. FX
Restated CASK9M 2018
Group Unit Costs
* Customs duties
• Cost per ASK increased by 3.0% from RUB 3.09 in 9M 2018 to RUB 3.18 in 9M 2019 on the back of aircraft and
passenger servicing and maintenance growth.
Q3 2018
restated1 Q3 2019 Change Operating Expense per ASK (CASK), RUB9M 2018
restated1 9M 2019 Change
1.09 0.99 (9.7)% Fuel 1.02 1.00 (1.8)%
1.96 2.10 7.3% Opex (ex. Fuel): 2.07 2.18 5.4%
0.64 0.67 4.3% Aircraft and Passenger Servicing 0.62 0.67 7.4%
0.49 0.49 0.3% D&A and Customs Duties 0.51 0.55 8.2%
0.40 0.41 4.3% Staff 0.47 0.46 (2.2)%
0.14 0.15 13.0% SG&A 0.15 0.15 0.8%
0.13 0.19 42.4% Maintenance 0.13 0.16 28.7%
0.03 0.05 50.0% Short-term and Immaterial Lease 0.03 0.04 21.1%
0.14 0.15 6.5% Other Expenses 0.15 0.14 (6.8)%
3.06 3.09 1.2% Total Opex 3.09 3.18 3.0%
1.7%(1.3)%3.0%
1 Restated financials presented based on IFRS 16 full retrospective application. Q3 and 9M 2019 presented based on IFRS 16 full retrospective application.
20
132,741
39,231
8,025 1,099
9,283 (6,135)(11,057)
(5,945)(16,249)
(1,225) (6,054)
(1,828) (211)
141,675
Restated
EBITDA 9M
2018
Volume Pricing Other FX benefit on
revenue
FX drag on
costs
Fuel* Staff* Aircraft and
PAX*
Leases* Maintenance* Admin & Sales
& Marketing*
Other OPEX* EBITDA 9M
2019
EBITDA Evolution
(RUB mln)
* Excluding currency impact
** Restated EBITDA presented based on IFRS 16 full retrospective application. 9M 2019 EBITDA presented based on IFRS 16 full retrospective application.
• Positive FX impact was observed on revenue side on the back of weakening RUB, which outpaced pressure on
operating costs.
• Key drivers of EBITDA adjustment along with the growth in size and scale of operations were increase in jet
fuel price and aircraft and passenger servicing costs.
Net volume and price effect
∑=(42,569) RUB mln
Total effect on revenue
∑=57,638 RUB mlnTotal effect on costs
∑=(48,704) RUB mln
Net volume and price effect
∑=48,355 RUB mlnNet FX effect
∑=3,148 RUB mln
****
21
Pobeda Financial Results
Increasing PAX Traffic RASK dynamics
Increasing ASK CASK dynamics
2.66 2.80
9M 2018 9M 2019
5.2
7.6
9M 2018 9M 2019
Million passengers RUB
Pobeda Statement of Profit and Loss (IFRS, standalone)
2.14 2.23
9M 2018 9M 2019
PAX up by 46.4% in 9M 2019 RASK up by 5.5% in 9M 2019
ASK up by 45.9% in 9M 2019 CASK up by 4.4% in 9M 2019
Q3 2018
restated2 Q3 20192 Change RUB mln9M 2018
restated2 9M 20192Change
12,747 19,320 51.6% Revenue 26,483 40,779 54.0%
8,476 11,920 40.6%Operating
Expenses21,328 32,484 52.3%
4,271 7,400 73.3%Operating
Income5,155 8,295 60.9%
(2,325) (2,475) 6.5%Finance
Income/expenses
(net)3
(6,363) 201 n/a
1,823 4,222 >2xNet Income /
(Loss)3 (675) 7,423 n/a
5,596 9,483 69.4% EBITDA 8,645 14,173 64.0%
43.9% 49.1% 5.2 p.p. EBITDA margin 32.6% 34.8% 2.2 p.p.
Note: based on managerial accounts transformed under IFRS principles. Includes 12 aircraftsubleased from Aeroflot.1 Calculation based on Total Revenue of the Company2 Restated financials presented based on IFRS 16 full retrospective application. Q3 and 9M 2019 presented based on IFRS 16 full retrospective application.3 Including net FX gain from lease liabilities revaluation in the amount of 3.8 bn RUB in 9M 2019 (4.5 bn RUB net FX loss in 9M 2018) and 1.2 bn RUB net FX loss in Q3 2019 (1.6 bn RUB
net FX loss in Q3 2018) ; eliminated in consolidated financials in 2019 due to hedging of FX-denominated liabilities with FX-denominated revenues (effectively non-cash income).
• Pobeda has demonstrated solid results backed by strong demand and active expansion of the fleet
in 9M 2019.
Billion ASK RUB
1
10.0
14.5
9M 2018 9M 2019
22
5.14.5
3.8 3.7
31-Dec-2018 31-Mar-2019 30-Jun-2019 30-Sep-2019
Leverage and Liquidity
RUB mln 31-Dec-2018 30-Sep-2019 Change
Borrowings 3,486 3,327 (4.6)%
Lease Liabilities 655,931 593,447 (9.5)%
Pension Liabilities 908 928 2.2%
Total Debt 660,325 597,702 (9.5)%
Cash and Short Term
Investments30,148 30,314 0.6%
Net Debt 630,177 567,388 (10.0)%
• Total debt decreased by 9.5% on the back of lower lease liabilities while Net Debt decreased by 10.0%.
• Cash position of RUB 30.3 billion and undrawn credit lines of RUB 96.4 billion.
1 Based on financial data under IFRS 16; 30-Sep-2019 exchange rate - 64.42 RUB per USD , 31-Dec-2018 exchange rate - 69.47 RUB per USD.2 Lease liabilities updated versus previously reported figure of 661,182 million RUB due to refinement of judgments & estimates. Net debt / EBITDA adjusted due to amendment of Lease liabilities in ratio numerator.
Debt Profile1 Net Debt / EBITDA (management accounting)
Borrowings breakdown by currency
Source: management accounting. Q1, Q2 and Q3 2019 EBITDA used in the calculation is based on data under IFRS 16; 2018 data is based on previously reported EBITDAR (pre-IFRS 16).
2
2,888
439
RUB USD
23
1. Market Update and Operating Results
2. Network and Schedule Overview
3. Fleet Overview
4. Financial Performance
5. Appendix
24
46.3 52.6
56.4 62.6
68.8
2014 2015 2016 2017 2018
103.1 97.9 101.4 102.3 110.0
2014 2015 2016 2017 2018
46.3 52.6 56.4 62.6 68.8
65.5 54.7 46.461.1
68.1
111.8 107.3 102.8
123.7137.0
0.0
50.0
100.0
150.0
2014 2015 2016 2017 2018Domestic Routes International Routes
0.31
1.78
0.50 0.34 0.36 0.35
3.73
2.50
1.13 0.69
0.46 0.46
UK USA Turkey Russia China Brazil
… from airlines on domestic routesRailways facing increasing competition…
Notes: (1) Total local and foreign carriers’ traffic
Sources: FAVT, Aeroflot estimates
Total CAGR 5.2%
International – 1.0% | Domestic – 10.4%
Despite fast growth of the recent years,Russian airline industry still haspromising growth prospects
ChangeFY17-18
11.5%
10.0%
(6.9)% 3.6%
10.9%
17.9%
RZD long-haul rail traffic (mln PAX) Domestic air traffic (mln PAX)
(2) Airline O&D per capita per year, as of 2018
Sources: Oxford Economics, Aeroflot estimates
0.31
Domestic PAX per capita
1.78
0.50 0.34
x.xx
(5.0)%
13.6%
10.7%
• 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.
Russian Total Passenger Traffic Growth, mln PAX(1) Trips per Capita (2)
0.8%
7.3%
Long-distance rail routes facedvolatile passenger traffic dynamics inthe recent years and lost over10 mln PAX over a decade
Domestic air traffic grew at a much higherpace than other means of transportation
0.36 0.35
7.9%
10.0%
Russian Air Transportation Market: Room for Growth
25
7.9 %
10.9 %10.6 %
9.1 %
6.9 %
9.1%
10.5%
9.4%
7.2%
5.0%
8.5% 10.7% 10.0% 8.2% 5.9%
Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019
International Domestic Total market
Passenger Traffic (Russian and Foreign Carriers) Capacity (Russian and Foreign Carriers)
Change in PAX traffic y-o-y, % Change in ASK y-o-y, %
• In 2019 market continues to grow on the back of higher demand in both international and domestic segments.
• Capacity additions are mostly carried out by Russian carriers with foreign airlines cutting their exposure
to Russian market in Q2 and Q3 2019.
Source: SRS for foreign carriers, TCH for domestic carriers, Company calculations.Source: TCH, Company calculations
Market Return to Growth
18.6 %
11.0 %
0.6 %
(14.8)%
(17.2)%
7.5%
11.9%
13.8% 14.4%
11.9%
Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019
Foreign carriers Russian carriers
26
Operating Data – Q3 & 9M 2019
Indicator Unit
Aeroflot airline Aeroflot Group
Q3
2018
Q3
2019Y-o-Y
9M
2018
9M
2019Y-o-Y
Q3
2018
Q3
2019Y-o-Y
9M
2018
9M
2019Y-o-Y
Passenger Traffic th PAX 10,547 10,638 0.9% 26,770 28,433 6.2% 17,393 18,533 6.6% 42,249 46,728 10.6%
International Routes th PAX 5,336 5,589 4.7% 13,688 14,907 8.9% 7,700 8,275 7.5% 18,759 20,957 11.7%
Domestic Routes th PAX 5,211 5,049 (3.1%) 13,082 13,526 3.4% 9,693 10,258 5.8% 23,490 25,771 9.7%
Passenger Turnover mn pkm 28,599 28,803 0.7% 73,525 77,622 5.6% 44,441 47,340 6.5% 108,428 120,265 10.9%
International Routes mn pkm 18,207 19,428 6.7% 47,958 52,823 10.1% 24,793 26,678 7.6% 62,725 70,209 11.9%
Domestic Routes mn pkm 10,392 9,375 (9.8%) 25,567 24,799 (3.0%) 19,648 20,662 5.2% 45,703 50,056 9.5%
Passenger Capacity mn ASK 32,463 33,567 3.4% 90,088 96,755 7.4% 49,411 53,497 8.3% 129,393 145,381 12.4%
International Routes mn ASK 21,236 23,028 8.4% 60,054 66,753 11.2% 28,219 30,762 9.0% 76,180 86,333 13.3%
Domestic Routes mn ASK 11,227 10,539 (6.1%) 30,034 30,002 (0.1%) 21,192 22,734 7.3% 53,213 59,048 11.0%
Passenger Load Factor % 88.1% 85.8% (2.3) p.p. 81.6% 80.2% (1.4) p.p. 89.9% 88.5% (1.5) p.p. 83.8% 82.7% (1.1) p.p.
International Routes % 85.7% 84.4% (1.4) p.p. 79.9% 79.1% (0.7) p.p. 87.9% 86.7% (1.1) p.p. 82.3% 81.3% (1.0) p.p.
Domestic Routes % 92.6% 89.0% (3.6) p.p. 85.1% 82.7% (2.5) p.p. 92.7% 90.9% (1.8) p.p. 85.9% 84.8% (1.1) p.p.
Tonne-Kilometres mn tkm 2,850 2,849 (0.0%) 7,372 7,698 4.4% 4,356 4,613 5.9% 10,696 11,767 10.0%
International Routes mn tkm 1,834 1,935 5.5% 4,851 5,278 8.8% 2,440 2,607 6.8% 6,216 6,898 11.0%
Domestic Routes mn tkm 1,016 914 (10.0%) 2,521 2,420 (4.0%) 1,916 2,006 4.7% 4,480 4,869 8.7%
Revenue Flights flights 73,270 76,424 4.3% 200,651 218,987 9.1% 114,717 122,139 6.5% 305,730 337,423 10.4%
International Routes flights 35,946 37,106 3.2% 98,963 107,210 8.3% 48,419 50,638 4.6% 128,358 141,691 10.4%
Domestic Routes flights 37,324 39,318 5.3% 101,688 111,777 9.9% 66,298 71,501 7.8% 177,372 195,732 10.4%
Flight Hours hours 206,592 216,015 4.6% 572,003 626,178 9.5% 311,854 333,409 6.9% 833,777 927,336 11.2%
27
Indicator UnitRossiya Airline Pobeda Airline Aurora Airline
9M 2019 Y-o-Y 9M 2019 Y-o-Y 9M 2019 Y-o-Y
Passenger Traffic th PAX 9,434 4.3% 7,582 46.4% 1,280 1.9%
International Routes th PAX 3,967 11.3% 1,742 45.9% 341 8.7%
Domestic Routes th PAX 5,467 (0.3%) 5,839 46.6% 939 (0.3%)
Passenger Turnover mn pkm 27,099 15.2% 13,688 45.1% 1,856 (4.7%)
International Routes mn pkm 13,012 11.2% 3,893 49.2% 481 6.6%
Domestic Routes mn pkm 14,087 19.2% 9,795 43.5% 1,375 (8.1%)
Passenger Capacity mn ASK 31,507 17.6% 14,547 45.9% 2,573 1.2%
International Routes mn ASK 14,594 14.7% 4,276 53.7% 710 14.4%
Domestic Routes mn ASK 16,913 20.2% 10,273 42.9% 1,862 (3.1%)
Passenger Load Factor % 86.0% (1.8) p.p. 94.1% (0.5) p.p. 72.1% (4.5) p.p.
International Routes % 89.2% (2.8) p.p. 91.0% (2.8) p.p. 67.7% (5.0) p.p.
Domestic Routes % 83.3% (0.7) p.p. 95.3% 0.4 p.p. 73.8% (4.1) p.p.
Flight Hours hours 163,818 4.8% 102,452 45.9% 34,886 (0.9%)
Key Operating Data of Subsidiary Airlines – 9M 2019
28
• Strong operating performance on scheduled routes supported by route network development.
Source: Data presented based on management accounting for scheduled flights of Aeroflot Group (excluding charter flights)
Americas Russia CIS
Europe Middle East Asia
Performance of North and Central Americanmarket was influenced by reduction of capacity toJFK (two daily flights instead of three for Winterseason) as well as some other destinations.
Capacity have been increased to key domesticmarkets as well as smaller regional cities.Additional contribution from new services toCaucasus, Ulyanovsk and Izhevsk.
Positive contribution to regions’ KPIs comes fromincreased frequencies of Aeroflot airline andstronger demand to local destinations.
European markets performance benefited fromlaunching of additional frequencies as well asnew flights to Slovenia, Dublin, Naples, Verona,Marseille and Palma.
Operating performance of the region significantlyaffected by increased frequencies to Istanbul,Antalya and Dubai backed by strong demand.
More traffic on key scheduled destinations(Beijing, Tokyo) as well as popular leisuredestinations (Phuket, Male) amid increase infrequencies supportive for overall performance ofthe region.
9M 2019 Operating Data by Region (Scheduled Routes)
(4.1)% (4.0)% (8.0)%
3.5 p.p.
Passengerscarried
RPK ASK PLF
9.6 % 9.5 % 11.1 %
(1.3) p.p.Passengers
carriedRPK ASK PLF
4.6 % 8.8 %11.0 %
(1.7) p.p.
Passengerscarried
RPK ASK PLF
13.9 % 14.6 % 15.3 %
(0.4) p.p.
Passengerscarried
RPK ASK PLF
16.5 %19.2 % 18.0 %
2.8 p.p.
Passengerscarried
RPK ASK PLF
16.7 %21.6 %
26.5 %
(3.2) p.p.
Passengerscarried
RPK ASK PLF
29• Well-balanced fleet structure in line with Group’s strategy
Breakdown by Company
Breakdown by Aircraft
Narrow-body
(medium-haul)67%
Narrow-body
(regional) 17%
Wide-body16%
Aeroflot69%
Rossiya17%
Aurora6%
Pobeda8%
Aircraft TypeOperated by Total as of Total as of Change vs.
Aeroflot Subsidiaries 30-Sept-19 31-Dec-18 31-Dec-18
Wide-body 41 19 60 58 2
Airbus A330 22 - 22 22 -
Boeing 777 19 10 29 27 2
Boeing 747 - 9 9 9 -
Narrow-body (medium-haul)159 83 242 244 (2)
Airbus A319- 31 31 35 (4)
Airbus A32078 6 84 85 (1)
Airbus A32134 - 34 37 (3)
Boeing 73747 46 93 87 6
Narrow-body (regional) 49 13 62 64 (2)
DHC 8 - 10 10 11 (1)
DHC 6 - 3 3 3 -
SSJ 10049 - 49 50 (1)
Total fleet249 115 364 366 (2)
Aeroflot Group Fleet Overview
Aeroflot Group Fleet Breakdown
30
150 165189
224 253 249
4.14.4 4.2 4.1 4.2
4,8
2014 2015 2016 2017 2018 9/30/2019
Aircraft Average Age
251 247289
325366 364
7.06.4 6.5 6.2 6.2
6,7
2014 2015 2016 2017 2018 9/30/2019
Aircraft Average Age
• 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
Aeroflot Group Fleet in Operation
Aeroflot Airline Fleet in Operation
Average Age of the Fleet 1
1 Average Fleet Age of Selected Airlines with Active Fleet of 100+ Aircraft according to FlightGlobal data (as of October 2019, data by legal entity)
4.8
5.4
5.4
5.6
5.7
5.8
6.0
6.1
6.2
6.3
6.3
6.4
6.6
6.6
6.6
6.7
6.8
6.9
7.2
7.3
7.3
Hainan Airlines
Wizz Air
IndiGo
Etihad Airways
Sichuan Airlines
Qatar Airways
Spirit Airlines
Ethiopian Airlines
Shandong Airlines
Xiamen Airlines
Azul
China Eastern Airlines
Emirates Airline
Saudia
Vueling Airlines
Singapore Airlines
Avianca
China Southern Airlines
Lion Air
Shenzhen Airlines
Aeroflot Group Fleet Evolution
31
Traffic Revenue Analysis
Q3 2018 Q3 2019 Y-o-Y Region 9M 20189M 2019 Y-o-Y9M 2019, % of
sch. revenue
71,101 79,918 12.4% Russia 155,892 182,340 17.0% 42.3%
45,267 45,907 1.4% Europe 106,577 114,149 7.1% 26.5%
21,419 21,941 2.4% Asia 56,011 65,567 17.1% 15.2%
7,891 7,777 (1.4)% CIS 18,644 20,658 10.8% 4.8%
10,243 9,659 (5.7)%North and Central
America23,523 23,198 (1.4)% 5.4%
7,518 11,258 49.7%Middle East and
Africa18,761 25,269 34.7% 5.9%
163,439 176,460 8.0% Total 379,408 431,181 13.6% 100.0%
1 Data presented based on management accounting2 Data presented based on management accounting for Aeroflot airline and routes of subsidiary airlines under commercial management of Aeroflot
9M 2019
9M 20192
Traffic Revenue Breakdown by Type
Scheduled Traffic Revenue by POS
Revenue from Scheduled Passengers (RUB mln)1
• In 9M 2019 revenue from scheduled passengers grew by 13.6% mainly driven by revenue growth on Russian,
European and Asian markets.
Total Passenger Revenue (Scheduled + Charter, RUB mln)
Q3 2018 Q3 2019 Y-o-Y Segment 9M 20189M 2019 Y-o-Y9M 2019, % of
revenue
73,633 82,463 12.0% Domestic 161,162 187,985 16.6% 40.7%
103,989 107,860 3.7% International 248,812 274,049 10.1% 59.3%
177,622 190,323 7.2% Total 409,974 462,034 12.7% 100.0%
Sheduled Passenger Flights
90.7%
Charter Passenger Flights 6.5%
Cargo 2.9%
Sales abroad28.6%
Online34.3%
Call center and ow n branches
3.5%
Sales in Russia33.6%
32
3.53
3.973.783.76
3.90 3.84
Domestic International Total
3.75
4.194.003.99 4.04 4.02
Domestic International Total
Note: Data presented based on management accounting figures, scheduled and charter flights revenue is used for calculations
• Competitive positioning, adjustment of fuel surcharges and changing mix of operations at subsidiaries’ level due to
rapid expansion of LCC as well as high base of previous year affected RUB yields in 9M 2019.
% Y-o-Y increase 2018 2019
Q3 Yield (Scheduled + Charter PAX Revenue / RPK)
RUB
Q3 RASK (Scheduled + Charter PAX Revenue / RPK)
RUB
0.6% 4.4% (1.0)%(3.6)% (4.9)%
6.5%
9M Yield (Scheduled + Charter PAX Revenue / RPK)
RUB
9M RASK (Scheduled + Charter PAX Revenue / RPK)
RUB
1.6% 5.1%0.3%
(2.8)%
6.5%
Aeroflot Group Blended Flights Revenue Units
RUB RUB
3.473.69 3.593.63
3.51 3.56
Domestic International Total
3.03
3.273.173.18 3.17 3.18
Domestic International Total
(1.6)%
33• Improvement in labour productivity has resulted in increase of key performance indicators in 9M 2019.
• Aeroflot Group headcount increased by 0.8% vs. September 30, 2018.
Traffic Revenue / Average Airlines’ Headcount PAX Traffic / Average Airlines’ Headcount
8.9%
(million RUB per employee, annualized to 30.09.2019) (passengers per employee, annualized to 30.09.2019)
Aeroflot Group Headcount by Category
10.5%
1 Aeroflot Group headcount table excludes Aeroflot Aviation School headcount amounting to 198 employees as at 30-Sep-2018 and 223 employees as at 30-Sep-2019.
30-Sep-2018 30-Sep-2019 %
Cabin crew 11,947 12,700 6.3 %
Airport services 7,117 5,374 (24.5)%
Technical maintenance and repair 5,196 5,421 4.3 %
Flight crew 4,042 4,508 11.5 %
Tickets and services sales, advertising 1,921 1,967 2.4 %
Other airline personnel (inc. airlines’ head office) 5,586 5,385 (3.6)%
Other non-airline subsidiaries’ personnel 4,972 5,760 15.8 %
Total1 40,781 41,115 0.8 %
Headcount Overview
15.4
17.0
9/30/2018 (LTM) 9/30/2019 (LTM)
1,554
1,692
9/30/2018 (LTM) 9/30/2019 (LTM)
Flight crew11.0%
Cabin crew30.9%
Technical maintenance and
repair13.2%
Tickets and services sales, advertising
4.8%
Airport services13.1%
Other airline personnel
13.1%
Other non-airline personnel
14.0%
34
87,936
107,190
23,625
79,415
39,031 (296) (4,394)
137,381
(10,649)
126,732
(17,661)
4,926 (8,660)
(14,929)
(2,472)
Profit BeforeIncome Tax
D&A InterestExpense
UnrealizedNet FX Gain
Other Adj.Before
WorkingCapital
Changes
Cash FlowsFrom
OperatingActivitiesBefore
WorkingCapital
Changes
WorkingCapital
Changes andIncome Tax
Net CashFlows FromOperatingActivities
Purchase ofPPE &
CapitalizedExpenses
ProceedsFrom Sale of
PPE
DepositPlacementand Return
Net Pre-delivery
Payments forAircraft
Net LeaseDeposits for
a/c andOther
Free CashFlow 9M
2019
RestatedFree CashFlow 9M
2018
Operating and Free Cash Flows
• Strong Operating and Free Cash Flow generation in 9M 2019 notwithstanding the macro challenges.
(RUB mln)
Million RUB 9M 2019
Other adjustments before working capital changes, incl.
Change in provisions (2,272)
Effect from revenue hedging (finance lease hedge accounting) 2,302
Interest income (3,001)
Other (1,423)
* Restated data
Million RUB 9M 2019
Working capital changes and income tax, incl.
Change in accounts receivable and prepayments (7,607)
Change in accounts payable and accrued liabilities (4,506)
Change in expendable spare parts and inventories (1,203)
Change in tax and restricted cash 2,667
(18.0)%
35
Net Income Evolution
(RUB mln)
• Increase in revenue generated by growing volumes was offset by a less favorable operating cost
environment.
• No FX losses related to revaluation of liabilities in 9M 2019 due to hedge accounting in place
resulted in significant improvement of Finance Costs in the respective period and supported the
bottom line.
(17,382)
20,305
(62,910)
52,834
4,804
263
45,400
2,623 361 (5,734)
46
Restated NetIncome 9M 2018
Traffic Revenue Other Revenue OperatingExpenses
Finance Income Finance Costs Hedging Result Revaluation ofEquity
Investments andother
Taxation Other Net Income 9M2019
36
4%
96%
5%
12%
83%
Loans and credit linesFinancial leaseOperating lease
• Higher Finance costs due to larger volume of liabilities related to leased
objects reflected in statement of financial position.
Indicator Impact Explanation
Operating incomeDue to redistribution of Operating lease costs
to Finance costs.
EBITDA
Due to redistribution of Lease and
Maintenance expenses to D&A and Finance
costs.
Net income No significant impact.
$$$
$$$
$$$
$$$
$$$
$$$
$$$
$$$
$$$
$$$
PnL statement 2018 2019
2018 2019E
Explanation
• Introduction of IFRS 16 standard will lead to an increase in the Group’s debt portfolio,higher Operating income and EBITDA due to redistribution of costs across PnL items.
Operating lease expenses
Maintenance and reserves
Depreciation & amortization (D&A)
Curr. translation differences
Finance costs
• Redistribution of Lease and Maintenance expenses to D&A and Finance costs
due to reflecting aircraft and other leased assets on Company’s books.
• Operating lease expense line will still hold objects not influenced by IFRS 16.
Significant changes are expected in Operating lease and Maintenance lines of PnL
• D&A increase due to higher volume of assets reflected in statement of
financial position, growth in maintenance capitalization.
• Volatility in currency translation differences will be mostly “regulated” by hedge
accounting.
Debt portfolio, % Impact on Key financial indicators
Introduction of IFRS 16
37
55
57
59
61
63
65
67
69
71
Adoption of IFRS 16 – Lease Liabilities Revaluation
• Hedge accounting is applied to finance lease liabilities from 30-Sep-14, to operating leaseliabilities – from 1-Jan-2019.
• Prospective introduction of hedge accounting for operating leases from 2019 explains FX lossesin restated figures for 2018.
• In 9M 2018 RUB devaluation of 14% vs USD since the beginning of the year resulted in 42 billionRUB paper loss on FX.
million RUB9M 2018
reported19M 2018
restated2 Difference
EBITDA 47,191 132,741 + 85,550
D&A and Customs Duties 10,342 65,774 + 55,432
EBIT (Operating Profit) 36,849 66,967 + 30,118
Net Loss 22,492 (17,382) - 39,874
Loss on FX (Operating Lease
A/с Liabilities Revaluation)
After Tax
(42,323)
Adjusted Net Loss 22,492 24,941 + 2,450
Finance Lease
(IAS 17)
RUB/USD
Effect on Profit & Loss Exchange rate dynamics
1 Reported financial results represent 9M 2018 data reported in November 2018.2 Restated financial results presented based on IFRS 16 full retrospective application.
+13.9% (31-Dec-17 – 30-Sep-18)
393,090
million RUB
Lease Liabilities (1-Jan-18)
Operating Lease
(IFRS 16)
Total Lease
Liabilities
100,688
million RUB
493,778
million RUB
Hedge accounting
applied from
30-Sep-14
Hedge accounting
not applied for 2018
Executive Board
Personnel and Remuneration
Committee
(5 members)
General Meeting of Shareholders
Board of Directors
Audit Committee
(3 members)
Strategy Committee
(10 members)
Corporate Governance
NameAudit
Committee
Personnel and
Remuneration
Committee
Strategy
Committee
Evgeny Ditrich Chairman
Mikhail Poluboyarinov Deputy Chairman
Vitaly Saveliev
Alexander Galushka Member Member
Igor Kamenskoy Member Member Chairman
Maksim Liksutov
Dmitry Peskov Member Member
Vasily Sidorov Chairman Member Member
Yuri Slyusar Member
Maxim Sokolov Member Chairman Member
Sergey Chemezov
Board of Directors
The Board of Directors is currently composed of 11
members. The Board’s composition is well balanced
from members’ background perspective.
Incorporated in Russia, PJSC Aeroflot is subject to
Russian corporate governance regulations and follows
Russian Corporate Governance Code
Independent director according to the Russian Corporate Governance Code 38
Board of Directors
Airlines Ancillary Companies
PJSC Aeroflot
JSC Rossiya Airlines 75%-1 sh.
LLC Pobeda Airlines 100%
JSC Aurora Airlines 51%
CJSC 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 2019; 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). JSC Orenair was liquidated in July 2019, JSC Donavia was liquidated in November 2019.
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.
A-Technics
Maintenance 100%
39
Aeroflot Group Structure
Address: 119019, Russia, Moscow, Arbat St. 1
E-mail: [email protected]
Website: www.aeroflot.ru
Investor Relations Contacts