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Aeroflot Group
Investor presentation
November 2014
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1
This document has been prepared by JSC “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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COMPANY OVERVIEW
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31%
International airlines
17% 12%
9%
9%
Other 22%
Aeroflot at a Glance – #1 Russian Carrier with a Global Network
Russian flagship carrier and market leader with a global network of
237 regular routes in 53 countries as of 30 June 2014
– LTM PAX of 33m for 1H 2014
– Fleet of 251 aircraft as of 1H 2014
– Operates c.26,000 flights per month
Main hub in Moscow (SVO), with secondary bases in St. Petersburg,
Vladivostok, Rostov-on-Don and Sochi
Premium network carrier with service quality recognized by numerous
international awards
Multi-brand product offering to capture customers in every market
segment
Impressive growth and profitability over the last three years
Shares traded on MICEX (Ticker: AFLT) and GDRs traded over-the-
counter on the Frankfurt Stock Exchange (Ticker: AETG)
Key Metrics
Aeroflot Shareholding Structure Russian Aviation Market7
Source: Company data 1 SLF – Seat Load Factor; 2 RPK = Revenue Passenger Kilometres; 3 Yield = PAX Traffic Revenue / RPK; 4 Adj. EBITDAR = EBITDA + operating lease expenses, adjusted for non-recurring
expenses; 5 Net Debt = borrowings + finance lease liabilities + pension liabilities + custom duties – cash and short-term investments; 6 Adj. Net Debt = Net Debt + capitalised operating leases (x7
LTM operating lease expense); 7 Including domestic and international traffic
Aeroflot Today
PAX (m, 1H 2014)
50.2 m
# 1
RUBm, Unless
Otherwise Stated FY 2012 FY 2013 Change 1H 2013 1H 2014 Change
PAX (m) 28 31 14.2% 14 16 9.9%
Revenue 253,039 290,956 15.0% 128,180 140,281 9.4%
SLF1 78.1% 78.2% 0.1p.p 76.2% 75.7% (0.5p.p)
RPK2 (m pkm) 74,617 85,273 14.3% 39,272 40,927 4.2%
Yield3 (RUB/pkm) 2.81 2.91 3.6% 2.76 2.88 4.3%
Adj. EBITDAR4 40,844 53,976 32.2% 19,967 18,754 (6.1%)
Margin (%) 16.1% 18.6% 2.5p.p 15.6% 13.4% (2.2p.p)
Net Debt5 60,575 64,403 – 67,687 75,929 –
Adj. Net Debt6 183,988 198,643 – 196,792 228,189 –
Adj. Net Debt/ LTM
Adj. EBITDAR 4.5x 3.7x (0.8x) 4.4x 4.3x (0.1x)
(as of 31 Dec. 2013)
Russian Federation 51.2%
Rostec 3.6%
Treasury Shares 4.5%
Private Individuals 6.5%
Free Float 34.3%
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Key Pillars of Aeroflot’s Corporate Strategy
2025 Strategic Objectives
Top-five European airline by revenue and passenger traffic
Top-20 global airline by revenue and passenger traffic
Total annual passenger traffic of more than 70m passengers, including 30m on the Russian market
Increased share of transit passengers through Aeroflot’s major hub in Moscow
Increased market share and growth based on implementation of multi-brand strategy
Delivering continued profitability and sustainable returns to shareholders
Multi-brand
Strategy
1
Global
Network
2
Strategic
Partnerships
3
Continuous
Operational
Improvement
4
Infrastructure
Expansion
5
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Aeroflot – #1 Russian Carrier with a Global Network
1 Without code sharing and including Russia
#1 airline in one of the fastest growing global markets with leading positions on both domestic and international routes
Global network with 141 destinations in 54 countries1
serviced by the youngest fleet in Europe
Multi-brand offering to reach the broadest customer spectrum across geographies
Superior product and customer experience
Efficient operating model underpinned by effective yield and cost management
Experienced management team and international standards of corporate governance
1
2
3
4
5
6
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#1 Airline in One of the Fastest Growing Global Markets with Leading Positions on Both Domestic and International Routes
20%
28% 27% 28% 26% 21%
33% 35% 36%
38%
2011 2012 2013 1H13 1H14
Source: TCH, Aeroflot 1 According to the Ministry of Transportation decree Crimea destinations are accounted as domestic for Russia starting from 1st April 2014
Russian Aviation Market Exhibits Significant
Growth
Aeroflot is Well Positioned to Increase Market
Share
PAX (m) CAGR
’11-13
Δ y-o-y Market Share (% of PAX)
32.7 35.4 39.2
17.3 20.2
47.3
56.2
64.4
28.7 30.0
80.0
91.8
103.6
45.9 50.2
2011 2012 2013 1H 2013 1H 2014
CAGR: 13.8% 9.1%
16.7%
9.5%
4.5%
16.8%
PAX (m) CAGR
’11-13
Δ y-o-y
7.0 11.5 14.0
6.2 7.7
9.4
16.0 17.4
8.0 7.9
16.4
27.5 31.4
14.2 15.6
2011 2012 2013 1H 2013 1H 2014
CAGR: 38.4% 9.9%
36.1%
41.4% (1.3%)
24.2%
International routes
Domestic routes
1
9.4 16.0
17.4
8.0 7.9 7.0
11.5 14.0
6.2 7.7
2011 2012 2013 1H13 1H14
PAX (m)
1
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6.4%
5.9% 5.8%
5.2%
4.0%
3.5%
Middle East Russia andCIS
Asia Pacific LatinAmerica
Europe NorthAmerica
0 10,000 20,000 30,000 40,000 50,000 60,000 70,000
3.2
2.6
1.5
0.7
EU-27
#1 Airline in One of the Fastest Growing Global Markets with Leading Positions on Both Domestic and International Routes
Source: Airbus Global Market Forecast 2013-2032, Global Insight 1 UK and EU-27 data is as of 2011, US data is as of 2012, Russia data is as of 2013
…with Significant Catch-Up Growth Potential
Russia/CIS to Remain One of the Fastest
Growing Global Aviation Markets…
RPK Growth (CAGR 2013-2032F)
Passengers per Capita1
Passengers per Capita vs. GDP per Capita ($)1
Passenger
per
Capita
GDP per Capita ($)
10
1
Denmark
Norway
Switzerland
China
Brazil
Romania
Austria
Germany
UK
Netherlands
France Italy
Spain
Greece
Portugal
Bulgaria
Croatia
Malaysia
Thailand
UAE
Finland
Russia
Global = 4.7%
1
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Los Angeles
Havana Punta Cana
New York
Washington
Düsseldorf Hannover
Kaliningrad
Kiev
Rostov-on-Don Krasnodar Anapa
Gelendzhik Sochi Mineralnye Vody
Astrakhan
Volgograd
Erevan Baku Teheran
Dubai
Damascus
Beirut Tel Aviv Cairo
Male
Delhi
Ho Chi Min
Bangkok
Hanoi Hong Kong
Guangzhou
Shanghai
Seoul Weihai
Beijing Dalian
Vladivostok
Harbin
Tokyo
Yuzhno-Sakhalinsk Shakhtyorsk
Okha
Khabarovsk Blagoveshchensk
Petropavlovsk-
Kamchatski
Magadan
Yakutsk
Irkutsk
Krasnoyarsk
Novy Urengoy
Surgut Nizhnevartovsk
Kemerovo Novosibirsk
Abakan Barnaul Pavlodar
Omsk
Karaganda Astana Ust-Kamenogorsk
Ürümqi Almaty Bishkek
Osch
Tashkent
Khujand Kulyab Dushanbe Samarkand Qarshi
Buhara
Urgench
Arkhangelsk
Murmansk
Saint-Petersburg
Moscow
Syktyvkar
Perm Tumen
Ekaterinburg Chelyabinsk
Samara Orenburg
Orsk
Ufa Kazan
Ulan Bator
Miami
Aeroflot routes
Rossiya routes
Donavia routes
Aurora routes
Magnitogorsk
Novokuznetsk Tomsk
Kharkov
Toronto
Fergana Namangan Navoi
Rhodos
Chita Ulan-Ude
8.0
0.8
6.0
10.0
7.8
5.0
9.0
0.3
7.0
11.0
8.8
5.3
Scheduled Charter InternationalScheduled
DomesticScheduled
Medium-haul Long-haul
1H 2013 1H 2014
Change 1H’14 vs. 1H’13
Average Flight Frequency per Route of Aeroflot JSC
91%
6% 3%
Scheduled Charter Cargo
39%
28%
14%
7%
13%
Global Network with 141 Destinations in 54 Countries1
Broad Geographic Network Focused on Scheduled Service and Increased Frequencies
Source: Company data 1 As of 30 June 2014
Traffic Revenue Breakdown (1H 2014)
Scheduled Traffic Revenue Breakdown (1H 2014)
39%
28%
14%
7%
13%
Russia Europe Asia North and Central America Other
39%
28%
14%
7%
13%
Russia Europe Asia North and Central America Other
39%
28%
14%
7%
13%
Russia Europe Asia North and Central America Other
39%
28%
14%
7%
13%
Russia Europe Asia North and Central America Other
39%
28%
14%
7%
13%
Russia Europe Asia North and Central America Other
Increasing Frequencies on All Scheduled Routes
12.5% (62.5%) 16.7% 10.0% 12.8% 6.0%
2
Malaga
Madrid
Las Palmas
Tenerife
Barcelona
Geneva Milan
Venice
Rimini
Rome
Split
Dubrovnik Tivat
Pula
Innsbruck Salzburg
Ljubljana Zagreb
Belgrade
Budapest
Athens
Sofia
Bucharest
Burgas
Varna
Istanbul
Heraklion
Antalya
Larnaca
Tel Aviv
Erevan Gyumri
Baku
Sochi Gelendzhik
Krasnodar Stavropol
Mineralnye Vody Anapa
Simferopol Odessa
Dnepropetrovsk
Donetsk Rostov-on-Don
Volgograd
Kiev
Samara
Nizhnekamsk
Kazan Nizhni Novgorod Moscow
Minsk
Warsaw
Kaliningrad
Riga
Saint Petersburg Helsinki
Tallin
Stockholm Oslo
Copenhagen
London
Paris
Brussels
Zurich
Munich Karlovy Vary Prague
Dresden
Berlin
Frankfurt
Düsseldorf
Amsterdam
Hannover
Hamburg
Bologna
Stuttgart
Thessaloniki
Vilnius
Vienna
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8.3% 7.8%
7.2% 6.8% 6.5%
6.1% 6.1% 5.8% 5.1% 4.9%
Mid
dle
East
Ch
ina
India
nsu
bco
ntin
en
t
Advnaced
Asia
Em
erg
ing
Asia
Ce
ntr
al E
uro
pe
CIS
We
ste
rnE
uro
pe
US
Sou
th A
me
rica
Uniquely Positioned to Capture Growing Traffic to / from Asia
Delhi Beijing Hong Kong Seoul Tokyo
Flight from Milan
Direct 10.5h 11.5h 12.0h
Via Moscow 10.5h 12.0h 14.0h 13.0h 14.0h
Via Istanbul 10.0h -0.5h 13.0h +1.0h 13.5h -0.5h 14.0h +1.0h 15.5h +1.5h
Via Dubai 10.5h 14.5h +2.5h 14.5h +0.5h 14.5h +1.5h 17.0h +3.0h
Flight from Paris
Direct 8.0h 10.0h 12.0h 11.0h 12.0h
Via Moscow 11.0h 12.5h 14.5h 13.5h 14.5h
Via Istanbul 10.5h -0.5h 14.0h +1.5h 14.0h -0.5h 14.5h +1.0h 16.0h +1.5h
Via Dubai 11.0h 15.0h +2.5h 15.0h +0.5h 16.0h +2.5h 17.5h +3.0h
Flight from Frankfurt
Direct 7.5h 9.5h 11.0h 10.5h 11.5h
Via Moscow 10.5h 11.5h 14.0h 13.0h 14.0h
Via Istanbul 10.0h -0.5h 13.5h +2.0h 13.5h -0.5h 14.0h +1.0h 15.5h +1.5h
Via Dubai 10.5h 14.5h +3.0h 14.5h +0.5h 15.5h +2.5h 17.0h +3.0h
Via Paris 10.5h 12.5h +1.0h 14.0h 13.0h 14.0h
Traffic Growth to / from Asia to Be an Important
Growth Opportunity for the Russian Market
Shortest Flying Time Between European and
Asian Destinations…
…Allows Aeroflot to Selectively Capture this
Growth
Source: Company data, IMF, Eurostat, RITA, Russian State Statistics Service, Rosaviatsia, Airbus Global Market Forecast 2014-2033
PAX (m) to / from Asia
Well Positioned to Capture Select Profitable
Transit Flows on Key Global Routes
Forecast Passenger Traffic Flows to/from Russia – CAGR 2013-2033E
Milan
Moscow
Mumbai
Beijing
ShanghaiNew York
Dusseldorf
Shortest geographic distance for selected key routes
1.4
2.2 2.4
2011 2012 2013
CAGR: 29.4%
30.0%
32.6%
35.0%
33.4%
37.2%
2011 2012 2013 1H 2013 1H 2014
CAGR: 8.0% 11.4%
Share of Transit of JSC Aeroflot in Sheremetyevo
2
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Modern, Efficient Fleet – the Youngest in Europe
Source: Airfleets, company data 1 Aeroflot excluding subsidiary airlines
Aeroflot Operates the Youngest Fleet in the Industry Ongoing Fleet Modernization…
…Enhances Utilisation and Increases Efficiency1
Flight Hours (th) Fuel Consumption
(gr per ASK) Fuel Consumption
(gr per TKM)
Average Fleet Age of Selected Airlines (2013)1 Passenger Fleet Structure: Aeroflot1
4.0
4.9
6.3
6.4
6.7
7.2
7.6
8.5
9.2
10.5
10.5
11.2
11.8
13.1
13.5
13.7
16.9
Lan Airlines
China Southern
China Eastern
Turkish
TAM
Singapore
IAG
Qantas
KLM
Air France
ANA
Lufthansa
BA
AA
United
Delta
109 125 139 152
5.7 5.6 5.4
4.0
2011 2012 2013 1H 2014
Fleet Average Age
461
776
2011 2013
330
317
2011 2013
28
25
2011 2013
29.7% (2.0%) (5.5%)
2
x.x% CAGR
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Multi-brand Offering to Reach the Broadest Customer Spectrum Across Geographies
Source: Company data
Note: All data as of 1H 2014, except for Pobeda (as of 29 Oct. 2014)
Brand
Flagship carrier
Premium product
High income, middle class, leisure
segment
Focus on direct and transit routes
via St. Petersburg hub
Middle class segment
Short- and medium-haul direct
domestic routes in the South of
Russia
Middle class segment
The Far East airline flying on short-
and medium-haul direct international
and domestic routes
Middle class segment
Predominantly charter operations
Leisure segment
Short and medium-haul
Point-to-point budget passenger
carrier
Moscow
(Sheremetyevo)
Saint-Petersburg
(Pulkovo)
Rostov-on-Don,
Krasnodar, Sochi,
Mineralnye Vody
Vladivostok,
Khabarovsk,
Yuzhno-
Sakhalinsk
Orenburg,
Moscow
(Domodedovo)
Moscow
(Vnukovo)
130
72
28
24
8
155
37
11
20
25
4
Ticket sales starting in
November
First flight is scheduled
on 17 Nov. 2014
70%
14%
5%
3%
8%
Not
applicable
Network/
Scheduled
Business Model
Focus
Airports
PAX Traffic
Contribution
Regular
Routes Fleet Size
Regional
Charter
Low Cost
(Pobeda)
3
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Superior Product and Customer Experience
Pre-flight Experience Ground Experience Inflight Experience Frequent Flyer
Programme
Source: Company data
30 36
47
62
2010 2011 2012 2013
Booking / Payment / Changes and
Amendments
Wide implementation of online
services
– Desktop / mobile websites,
mobile applications
– Multinational call-centre
– Customer offices
Ancillary services
Fast and streamlined processes:
– Check-ins (airport and online)
– Lounge
– Boarding
– Information
– Transit
– Disembarkation / Luggage
Seat quality and design
Outstanding flight experience
around a wide-selection of high-
quality food & beverages, inflight
connectivity and entertainment
across all classes
Marketing campaigns to boost
traffic, joint promotions with
partners
Recent developments: SMS
notifications, ability to upgrade
class for bonus miles, purchasing
tickets for bonus miles via mobile
application, etc.
2014 initiatives: platinum level
introduction (concierge service)
Desktop Site Visitors per Annum (m) Programme Participants (‘000)
Wide presence of
registration kiosks Priority check-in
Business class lounge
Boarding
Baggage drop-off
№ 1
2013
Conde Nast Traveller
Best Russian Airline
№ 1
2014
Skytrax World Airline Awards
Best Airline in Eastern Europe
№ 1
2013
Brand Awards
Best Company for Business
Travellers
B777
Economy class
Comfort seats with
increased row space
Full flatbed seats
Business class Desktop Website Mobile applications
2,724 4,002
2011 2013
CAGR: 21%
4
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Effective Yield Management
Yield (RUB/RPK)
Source: Company data
RASK (RUB)
Rapid Traffic Growth on the
Back of Network Expansion…
…Combined with Effective
Yield Management…
…Translated into Solid
Revenue Growth
Moderate growth of ASK for 1H 2014
vs. 1H 2013 impacted by restructuring
of fleet at subsidiaries level
Substantial expansion of RPK with
2011-2013 CAGR of 36.0%
Total yield increased by 4.3% in RUB
terms, which was a combination of
decreasing yields on domestic market
and improving yields on international
market
Increased RASK by 3.3% in RUB terms
as a result of improved commercial
performance
2.67
2.81
2.91
2.76
2.88
2011 2012 2013 1H 2013 1H 2014
2.06
2.21
2.26
2.11
2.18
2011 2012 2013 1H 2013 1H 2014
CAGR: 4.4% 4.3% CAGR: 4.7% 3.3%
46.1
74.6 85.3
39.3 40.9
2011 2012 2013 1H 2013 1H 2014
CAGR: 36.0%
4.2%
RPK
60.0
95.6 109.1
51.5 54.1
2011 2012 2013 1H 2013 1H 2014
CAGR: 34.8%
5.0%
ASK RASK (RUB/ASK)
5
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14
28
26
25 25
24
2011 2012 2013 1H 2013 1H 2014
Continued Focus on Tight Cost Control and Efficiency 5
969
1,139 1,244
469 496
2011 2012 2013 1H 2013 1H 2014
Fuel Consumption per ASK Labour Productivity Effective Maintenance
3.5 3.6 3.2 3.3
2.7 2.7
A320F B767
2011 2012 2013
(23.0%) (23.2%)
(4.0%)
gr/ASK PAX Traffic / Avg. Headcount Maintenance Man-Hour / Flight Hour Ratio (for Aeroflot JSC)
CAGR: (5.5%)
5.8%
CAGR: 13.3%
Fuel Hedging
67% 70% 70%
2013¹ 2014E 2015E
Share of Fuel Consumption Hedged
Source: Company data 1 At the beginning of 2014
60.3%
5.4%
32.1%
2.2%
Revenue Structure (Before Hedging) Revenue Structure (After Hedging) Cost Structure
RUB EUR USD Other
29.6%
48.9%
19.4%2.1%
55.2%
13.8%
28.9%
2.1%
Currency Hedging1
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Experienced Management Team and International Standards of Corporate Governance
Source: Company data 1 In accordance with the definition of independence as per Russian corporate law and code of corporate conduct
Executive Directors
Vitaly Saveliev
Dmitriy Saprykin
Independent Directors1
Marlen Manasov
Igor Kamenskoy
Roman Pakhomov
Non-Executive Directors
Kirill Androsov
Mikhail Alekseev
Dmitry Peskov
Igor Kogan
Vasiliy Sidorov
Sergey Chemezov
Board of Directors Management Board
Name / Position Biography
Vitaly Saveliev
CEO
CEO of Aeroflot Since April 2009
Previously – First Vice-President in
AFK Sistema
Dmitry Saprykin
Deputy General
Director – Sales and
Property Issues
Director
Joined Aeroflot in 2009
Previously – Deputy Head of the
legal department in AFK Sistema
Shamil Kurmashov
Deputy General
Director – Finance
and Network &
Revenue
Management
Joined Aeroflot in 2009
In 2007-2009 – Director of the
Investment Department – Deputy
Head of the complex finance and
investment in AFK Sistema
Giorgio Callegari
Deputy General
Director for Strategy
and Alliances
Joined Aeroflot in 2011
Previously – Executive Vice
President for Alliances and
Strategies in Alitalia
Vadim Zingman
Deputy General
Director – Customer
Service Director
Joined Aeroflot in 2009
Previously – Director of the
Department for Relations with public
authorities
Audit Committee
HR and
Compensation
Committee
Strategy
Committee
Board of Directors (11 Directors)
Chaired by Igor
Kogan
Chaired by Igor
Kamenskoy
Chaired by
Roman
Pakhomov
6
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0
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80
Arial
22
44
66
16
Pobeda – Aeroflot’s New Low Cost Carrier
Source: Company data
Corporate Structure
Stand-alone 100% subsidiary
Lean organisational structure
Clear governance relationship between the
subsidiary and parent company
Management Team
Strong and experienced management team
led by Vladimir Gorbunov who has
significant experience in the Russian airline
industry
Product Offering
A typical LCC offering to attract price
sensitive customers
Substantially different from Aeroflot’s
product proposition
Ticket Pricing Discount
20-40% discount compared to fares of
“traditional” carriers
Majority of tickets are non-refundable
Sales of tickets via direct or online
channels
Aircraft Type
Standardized modern fleet of new Boeing
737-800 NG
Simple cabin with increased density of
seats (189 per aircraft)
Fleet Size
4 aircraft in place in 2014
Expanding to 37 aircraft by 2018
Routes Network
8 routes in Russia in 2014
Expanding to 47 routes by 2018
Expansion to CIS and international markets
from 2016
Passenger Traffic
10m passengers by 2018 Company
Overview
Fleet Network
and Market
Product
and Prices
232
235
240
182
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135
157
179
0
112
192
59
100
135
0
176
80
Arial
22
44
66
17
Pobeda – Aeroflot’s New Low Cost Carrier (cont’d)
Overview of Pobeda Project
Status
Oct. 2013: launched under Dobrolet name
– 67.8 ths PAX carried by August 2014
– Flights suspended in August 2014 due to EU sanctions after
55 days of operations
Sep. 2014: new legal entity launched to run LCC business
Oct. 2014: official press release on launch of the LCC carrier
under “Pobeda” brand
Nov. 2014:
– Ticket sales starting in November
– First flight is scheduled on 17 Nov. 2014
Business
model
A typical LCC offering to attract price sensitive customers
Substantially different from Aeroflot’s product proposition:
– Food and drinks are not included in ticket price
– Extra fees for non-carry on baggage
– 20-40% discount compared to fares of “traditional” carriers
– Majority of tickets are non-refundable
Sales of tickets via direct or online channels
2018
Targets
c. 10m passengers
Expanding to 37 aircraft
Expanding to 47 routes
Expansion to CIS and international markets
Significant Growth Potential of LCC (short-,
medium-haul in Russia)
LCC Penetration (%)
8 Target Destinations by YE’2014
Surgut
MoscowPerm
Tumen
Ekaterinburg
Samara
Kazan
BelgorodVolgograd
38%
30% 27%
17%
9%
n.m.1
Europe NorthAmerica
SouthAmerica
Asia Africa Russia
Network Regional
Focus airports VKO (Moscow)
Destinations 8
Avg.
Frequency /
Destination
7 flights per week
Fleet 4 Boeing 737-800 NG
(189 seats per aircraft)
- planned frequency per week for 2014
14
14
7 14
7
7
7
7
#
Source: Company data 1 No LCC carrier is operating in the domestic Russian market currently, EasyJet and WizzAir are operating on a small number of international routes with negligible market share
232
235
240
182
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135
157
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0
112
192
59
100
135
0
176
80
Arial
22
44
66
18
OPERATING PERFORMANCE AND FLEET
232
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240
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135
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0
112
192
59
100
135
0
176
80
Arial
22
44
66
19
27.4
40.8
54.0
20.0 18.8
2011 2012 2013 1H 2013 1H 2014
Operating Performance Overview
Source: Company data
Revenue (RUB bn)
Adj.EBITDAR (RUB bn) and
Adj.EBITDAR Margin
Operating Free Cash Flow
(RUB bn) and Margin
Strong revenue growth on the back of
increasing RASK and yields and
expanding passenger traffic
Significant profitability increase in 2011-
2013 as result of operating leverage and
improvement in profitability of key
subsidiary airlines
Lower EBITDAR 1H 2014 numbers as
result of RUB depreciation impact on
costs and non-recurring expenses
Improved cash flow generation due to
higher profitability in 2011-2013 and
unrealized transportation revenue (cash
sales) in 1H 2014
158.0
253.0
291.0
128.2 140.3
2011 2012 2013 1H 2013 1H 2014(1.9)
18.2
25.1
22.1
26.5
2012 2013 1H 2013 1H 2014
2011
CAGR: 30.3%
9.4%
Margin
17.3% 16.1% 18.6% 15.6% 13.4%
Margin
(1.2%) 7.2% 8.6% 17.2% 18.9%
232
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80
Arial
22
44
66
20
YTD KPIs Speak to the Resilience of Aeroflot’s Business Model
Aeroflot Group Passenger Traffic (m PAX) Monthly Passenger Turnover (m RPK)
6.2 7.7
8.0 7.9
14.1 15.7
1H 2013 1H 2014
Domestic Routes International Routes
Aeroflot Overall
Market Share¹ 31% 31%
International¹
Domestic¹
28% 26%
36% 38% 0
2,000
4,000
6,000
8,000
10,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2012 2013 2014
Aug-2014 9,836
% Δ vs. Aug-2013 7.6%
% Δ vs. Jul-2014 0.8%
% Δ 8M 2014 vs. 8M 2013 5.6%
10.8%
Monthly Seat Load Factor (%) Yield and RASK (Blended)
60%
65%
70%
75%
80%
85%
90%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2012 2013 2014
Aug-2014 86.7%
% Δ vs. Aug-2013 1.0 p.p.
% Δ vs. Jul-2014 0.1 p.p.
% Δ 8M 2014 vs. 8M 2013 0.1 p.p.
2.76 2.88
1H 2013 1H 2014
2.92 2.91 2.99 2.85
International Domestic
Yield: PAX Revenue / RPK
(RUB / RPK)
4.3%
2.11 2.18
1H 2013 1H 2014
RASK: PAX Revenue / ASK
(RUB / ASK)
Yield (RUB / RPK)1,2
2.19 2.19 2.21 2.21
International Domestic
RASK (RUB / ASK)1,2
1H 2013 1H 2014
Source: Company data 1 For scheduled flights of Aeroflot Group (excluding charter flights) 2 Data presented based on management accounting
3.3%
232
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182
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135
157
179
0
112
192
59
100
135
0
176
80
Arial
22
44
66
21
Aeroflot Fleet Overview
Type1 Aeroflot Subsidiaries Total Owned Financial Lease Operating Lease
Lo
ng
-ha
ul
Boeing B-767 2 3 5 - - 5
Airbus A-330 22 - 22 - 8 14
Tu-204 - 2 2 - 2 -
Boeing B-777 10 3 13 - 10 3
Ilyushin Il-96-3002 6 - 6 6 - -
McDonnell Douglas MD-11 3 - 3 - - 3
Total 43 8 51 6 20 25
Me
diu
m-h
au
l
Airbus A-319 8 31 39 - 13 26
Airbus A-320 64 13 77 - 1 76
Airbus A-321 26 - 26 - 21 5
Boeing B-737 5 30 35 - 2 33
Total 103 74 177 - 37 140
Sh
ort
-ha
ul DHC 8 Series 200 - 3 3 - - 3
DHC 8 Series 300 - 4 4 - - 4
Antonov An-148 - 6 6 - 6 -
SSJ-100 9 1 10 - - 10
Total 9 14 23 - 6 17
Total fleet3 155 96 251 6 63 182
Source: Company data 1 As of 30-Jun-2014 2 Aircraft not in operation – to be phased out in 2014 3 Excluding 4 Mi-8 helicopters and 1 An-24 aircraft
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135
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0
112
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59
100
135
0
176
80
Arial
22
44
66
22
6M 2014 FINANCIAL RESULTS
232
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135
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0
112
192
59
100
135
0
176
80
Arial
22
44
66
23
Key Financial Results of Aeroflot Group
• Revenue growth driven by expanding passenger traffic
• Declining EBITDAR and net income as a result of RUB depreciation impact on costs and non-recurring expenses
• Higher cash flow generation due to growth of unrealized transportation revenue (cash sales)
1 EBITDAR = EBITDA + operating lease expenses;
² Operating Free Cash Flow = net cash flow from operations - net capex on tangible and intangible assets + net pre-delivery payments for aircraft.
³ Non-recurring expenses include provision on accounts receivable in relation to doubtful debtors (Ideal-tur and PGS) (RUB1,817m), provision for pre-term return of MD-11 (RUB874m), gain on pre-term return of TU-204
(RUB594m (RUB411m for Net Income))
RUBm 6M 2013 6M 2014
6M 2014 (ex. non-
recurring expenses³)
Revenue
EBITDAR¹
Net Income / (loss)
Operating Free Cash Flow²
128,180
-
140,281
+9% growth
140,281
+9% growth
18,754
13% margin
375
0% margin
26,476
+20% growth
16,657
12% margin
19,967
16% margin
(1,905)
neg. margin
45
0% margin
26,476
+20% growth
22,096
–
232
235
240
182
196
204
135
157
179
0
112
192
59
100
135
0
176
80
Arial
22
44
66
24
128,180 140,281
10,791
10,084 (9,383)
609
6M 2013 Volume Currency Pricing Other 6M 2014
Revenue Analysis
Revenue growth was a result of traffic volume growth, as currency effect was offset by softer fares on the
back of macroeconomic headwinds and intensified market competition
Net positive impact of 701m
RU
Bm
9%
232
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240
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135
157
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0
112
192
59
100
135
0
176
80
Arial
22
44
66
25
6M 2014,
RUBm 6М 2013
6М 2014
(excl. currency and
non-recurring
expenses)2,3
6M 2014
Y-o-y Change
(excl. currency and
non-recurring
expenses)
Y-o-y Change
Fuel 36,942 39,256 40,236 6.3% 8.9%
Opex (ex. Fuel) 86,057 95,516 101,429 11.0% 17.9%
Aircraft, Traffic and Passenger
Servicing 24,239 26,604 27,714 9.8% 14.3%
Staff 21,357 24,304 24,304 13.8% 13.8%
SG&A1 9,039 8,974 8,974 (0.7)% (0.7)%
Maintenance 8,675 8,582 9,268 (1.1)% 6.8%
Operating Lease 9,053 10,313 11,627 13.9% 28.4%
D&A and custom duties 5,733 6,414 6,414 11.9% 11.9%
Other Expenses² 7,961 10,325 13,128 29.7% 64.9%
Total Opex 122,999 134,772 141,665 9.6% 15.2%
6.5%
6.3%
28.4%
Cost Analysis
Operating costs impacted by non-recurring events and rouble depreciation which mostly affected cost of operating
lease, maintenance and aircraft, traffic and passenger servicing costs
17.2%
1 Includes sales and marketing expenses and administration and general expenses.
2 Non-recurring expenses include provision on accounts receivable in relation to doubtful debtors (Ideal-tur and PGS) (RUB1,817m), provision for pre-term return of MD-11 (RUB874m), gain on pre-term
return of TU-204 (RUB594m)
3 Currency impact on both fuel cost for operations and resale to third parties with latter accounted as other expenses
8.2%
19.6%
9.9 %
3.9%
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135
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0
112
192
59
100
135
0
176
80
Arial
22
44
66
26
7.70
(0.08)
0.03
(0.18)
(0.05)
(0.05)
0.05
(0.02) (0.02)
7.38
0.11 7.49
CA
SK
6M
201
3
Δ in
Sta
ff (
ex.
SB
C¹)
Δ in
SB
C¹
Δ in
Fu
el²
Δ in
M
ain
ten
an
ce
Δ in
A
ir, T
raff
ic a
nd
PA
X
Δ in
O
pe
ratin
g L
ea
se
Δ in
D
&A
an
d C
D³
Δ in
O
the
r co
sts⁴
(ex.
NR
E⁵)
CA
SK
6M
20
14
(ex.
NR
E⁵)
NR
E⁵
CA
SK
6M
20
14
Group Unit Costs
Cost Per ASK ($ cents)
Cost per ASK declined by 2.7% positively impacted by decline of staff, fuel, maintenance and air, traffic and PAX costs and negatively by introduction of share-based compensation programme, operating lease and non-recurring expenses, including provisions for doubtful accounts receivable from tour operators
1 Share-based compensation 2 Refers to both fuel costs for operations and resale of fuel to third parties accounted as other expenses 3 Customs duties 4 Other costs include SG&A and other expenses 5 Non-recurring expenses include provision on accounts receivable in relation to doubtful debtors (Ideal-tur and PGS), provision for pre-term return of MD-11 and gain on pre-term return of TU-204 Note: Costs and expenses converted at 31.02 and 34.98 RUB per $ for H1 2013 and H1 2014 respectively
(4.2)%
1.5%
232
235
240
182
196
204
135
157
179
0
112
192
59
100
135
0
176
80
Arial
22
44
66
27
6M 2013 6M 2014
$915/ton
(c.RUB28,300/ton)
$900/ton
(c.RUB31,500/ton)
201 198
6M 2013 6M 2014
Managing Fuel Costs
Fuel Consumption per ATK (gr/ATK)
Fuel Consumption per ASK (gr/ASK)
Average Fuel Price ($/ton)
Aeroflot is achieving efficiency gains in fuel costs as new aircraft are put into operation, while old and less fuel-efficient ones are in the process of phase out
• Continuous fuel supply optimisation
– 5-year supply contract at Sheremetyevo and 1-year supply contracts
in 29 regional airports across Russia
• Majority of fuel purchased in Russia (83%) and almost all fuel at
international airports supplied at formula-linked price
– Jet fuel price = NW Europe (FOB Rotterdam) price x Discount x FX
rate1 x 1.182 + Storage/Fuelling/Supply fees (if any of these
applicable)
• Average fuel purchase price of $900/ton (c.RUB31,500/ton3) in H1
2014 vs $915/ton (RUB28,300/ton4) in H1 2013 (1.7% y-o-y decrease
in USD terms)
25 24
6M 2013 6M 2014
(4.0)%
(1.5)%
1 USD/RUB exchange rate as per the Central Bank of Russia 2 Assuming 18% VAT rate 3 Based on average H1 2013 exchange rate of 31.02 RUB/USD 4 Based on average H1 2014 exchange rate of 34.98 RUB/USD
(1.7)%
232
235
240
182
196
204
135
157
179
0
112
192
59
100
135
0
176
80
Arial
22
44
66
28
3,603 3,734
6M 2013 6M 2014
469 496
6M 2013 6M 2014
1.30 1.30
6M 2013 6M 2014
RPK / Avg. Headcount
(m pkm per employee)
Headcount Overview and Labour Productivity
Traffic Revenue / Avg. Headcount
(RUB ‘000 per employee)
PAX Traffic / Avg. Headcount
(passengers per employee)
H1 2013 H1 2014 Y-o-y Change
Aeroflot JSC 16,083 17,321 7.7%
Aeromar 2,865 3,225 12.6%
Subsidiary Airlines 8,742 8,677 (0.7)%
Other1 2,435 2,376 (2.4)%
Total 30,125 31,599 4.9%
Sizeable improvement in labour productivity has resulted in increasing traffic revenue and PAX traffic per employee
Airlines Labour Productivity2
(0)% 6% 4%
1 Other includes AeroMASH AB, Aeroflot Riga, Sherotel and Aeroflot-Finance. 2 Based on Aeroflot JSC and subsidiary airlines average headcount.
Headcount
232
235
240
182
196
204
135
157
179
0
112
192
59
100
135
0
176
80
Arial
22
44
66
29
Adjusted Operating and Net Income Analysis
6M Adjusted Operating Income Build-Up (RUBm)
Aeroflot Group remained profitable on operating and net income basis adjusted for non-recurring provisions
(1,384)
1,817
874
(594)
713
Operating Income 6M 2014 Provision on accounts receivablein relation to doubtful debtors
(Ideal-tur and PGS)
Provision for pre-term return ofMD-11
Gain on pre-term return of TU-204
Adjusted Operating Income 6M2014
6M Adjusted Net Income Build-Up (RUBm)
(1,905)
1,817
874
(411)
375
Net Income 6M 2014 Provision on accounts receivablein relation to doubtful debtors
(Ideal-tur and PGS)
Provision for pre-term return ofMD-11
Gain on pre-term return of TU-204
Adjusted Net Income 6M 2014
232
235
240
182
196
204
135
157
179
0
112
192
59
100
135
0
176
80
Arial
22
44
66
30
5,181
10,791609
(9,383)
10,084
(4,796)
(2,730)
(2,947)
(2,365)(1,260) (681)
(1,790 )
713
(2,097) (1,384)
Op
era
tin
g I
nco
me
6M
201
3
Vo
lum
e
Oth
er
Pri
cin
g
FX
be
ne
fit
FX
dra
g
Fu
el*
Sta
ff
Air
cra
ft, T
raffic
an
d P
AX
*
Op
era
tin
g L
ease
s*
D&
A a
nd C
D**
Oth
er
op
ex*
**
Ad
juste
d O
pera
ting
Inco
me
6M
201
4
NR
E**
**
Op
era
tin
g I
nco
me
6M
201
4
Group Operating Income Analysis
6M Operating Income Evolution, y-o-y basis (RUBm)
* Excluding currency impact
** Custom Duties
*** Other operating expenses include SG&A, maintenance costs, other operating expenses (excluding currency effect and non-recurring expenses; including leased aircraft return provision)
**** Non-recurring expenses include provision on accounts receivable in relation to doubtful debtors (Ideal-tur and PGS), provision for pre-term return of MD-11 and gain on pre-term return of TU-204
Revenue growth driven by higher passenger volumes offset by increased costs due to FX movement and non-
recurring provisions
Total revenue change of 12,101m
Total recurring expenses change of 16,569m
232
235
240
182
196
204
135
157
179
0
112
192
59
100
135
0
176
80
Arial
22
44
66
31
1,835
(708)
(527)
163
(3,143)
407 52267
(251)(1,905)
2,280 375
(293)
Ae
roflo
t JS
C
Ro
ssiy
a A
irlin
es
Vla
div
osto
k A
ir
Do
navia
Ore
nair
Au
rora
Sh
ero
tel
Ae
rom
ar
Oth
ers
(inclu
din
g m
inori
ty)
Gro
up N
et
Inco
me
H1
20
14 N
RE
¹
Ad
juste
d G
roup
Ne
t In
com
e H
1 2
01
4
Ad
juste
d G
roup
Ne
t In
com
e H
1
201
3²
Group Net Income
Continuing restructuring of subsidiaries combined with non-recurring expenses contributed to negative reported net
income for the period
Aeroflot Group Net Income (RUBm)
Total net loss of subsidiary airlines of 3,808m
1 Non-recurring expenses include provision on accounts receivable in relation to doubtful debtors (Ideal-tur and PGS), provision for pre-term return of MD-11 and gain on pre-term return of TU-204 2 Net income for 6M 2013 adjusted for non-recurring gain on disposal of Aerofirst (RUB338m)
232
235
240
182
196
204
135
157
179
0
112
192
59
100
135
0
176
80
Arial
22
44
66
32
30-Jun-2013 30-Jun-2014 Change
Borrowings 13,638 14,403 5.6%
Finance Lease
Liabilities 76,389 97,308 27.4%
Pension Liabilities 722 735 1.8%
Customs Duties 402 300 (25.4)%
Total Debt 91,151 112,746 23.7%
Cash and Short Term
Investments 23,464 36,817 56.9%
Net Debt 67,687 75,929 12.2%
Leverage and Liquidity
Debt (RUBm)
5,588 10,434 10,629 10,330
60,327
H2 2014 2015 2016 2017 2018+
Finance Lease Repayment Schedule (RUBm)2
Borrowings Structure by
Currency
91%
9%
• Manageable debt level
• Cash position of RUB 36,817m and undrawn credit lines of RUB19,817m
3.8 x
2.6 x
4.3 x
30-Jun-2013 31-Dec-2013 30-Jun-2014
Total Debt / LTM EBITDA¹
Finance Lease Structure by
Currency 3%
97%
88% 12% RUB USD
1 Total debt does not include capitalised operating lease expenses 2 Future payments in dollars converted into roubles at exchange rate of 33.6306 RUB per USD
232
235
240
182
196
204
135
157
179
0
112
192
59
100
135
0
176
80
Arial
22
44
66
33
(1,205)
5,586
2,244
(1,361)
1,766 7,030
19,673 26,703
(2,396)
2,169 26,476
22,096
Profit BeforeIncome Tax
D&A InterestExpense
UnrealizedNet FX Loss
Other Adj.before
WorkingCapital
Changes
Cash Flowsfrom
OperatingActivities
beforeWorkingCapital
Changes
WorkingCapital
Changesand Income
Tax
NetCash Flows
fromOperatingActivities
NetCapital
Expenditures
NetPre-deliveryPayments
for Aircrafts
FreeCash Flow6M 2014
FreeCash Flow6M 2013
Operating Free Cash Flow
Substantial cash flow generation over the last 6 months and ahead of summer season
6M 2014 Operating Free Cash Flow (RUBm)
19.8%
232
235
240
182
196
204
135
157
179
0
112
192
59
100
135
0
176
80
Arial
22
44
66
34
APPENDIX
232
235
240
182
196
204
135
157
179
0
112
192
59
100
135
0
176
80
Arial
22
44
66
35
A Modern Global Airline with a Rich 90-Year Heritage
Phase III
(2007 – 2011)
2009: Restructuring
programme – new corporate
structure and management
team (CEO Vitaly Saveliev)
2009: Further fleet
modernisation (+24 new
aircraft)
2010-2011: New modern
terminals D & E put into
operation at Russia’s main
airport (+25 gates and 17m
passenger capacity),
Aeroflot’s hub
Phase I
(1923 – 1991)
1923: Russian civil aviation
industry and Aeroflot’s
predecessor established
1980s: Flights to all
continents; passenger annual
traffic of 120m
1991: Reorganised as Joint
Stock Company
Phase II
(1992 – 2006)
1992: Start of fleet
modernisation first Airbus and
Boeing 767 delivered
2000: Listed on Moscow
Exchange
2006: Joined SkyTeam
alliance
Phase IV
(2011 onwards)
2011: Acquired domestic
regional carriers Rossiya,
Vladivostok Air, Sakhalinskie
Aviatrassy, Orenair from
Rostec. Integration begins
(including Donavia)
2013 – 2014: Regional airline
integration ongoing. Creating
Aurora Airlines, a Russian Far
East carrier (merging Vladavia
and SAT)
2014: Sochi 2014 Olympics
official airline
2014: Launch of Low Cost
Carrier
Source: Company data
http://static1.wikia.nocookie.net/__cb20100507093230/logopedia/images/a/a1/Aeroflot_logo.svg
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240
182
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135
157
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0
112
192
59
100
135
0
176
80
Arial
22
44
66
36
Envisioned Aeroflot Network by 2018
St. Petersburg
Moscow
Rostov
Krasnodar
Sochi
Vladivostok
Khabarovsk
HUB Moscow Sheremetyevo (SVO)
Parameters 6 bank hub
Group focus airports:
Pulkovo (LED) > 170 flights per day
Krasnodar (KRR) up to 10 flights per day
Rostov-on Don (ROV) up to 20 flights per day
Sochi Intl. (AER) up to 5 flights per day
Khabarovsk Novy (KHV) > 70 flights per day
Vladivostok Intl. (VVO) > 50 flights per day
Network International &
Mainline domestic
Hub SVO
Destinations 129
Avg. Frequency
/ Destination 17 flights per week
Fleet 160
Network Domestic, Regional
Focus airport LED
Destinations Up to 70
Avg. Frequency
/ Destination 10 flights per week
Fleet 43
Network Regional
Focus airports VVO, KHV, UUS
Destinations > 100 (incl. legs)
Avg. Frequency
/ Destination 4 flights per week
Fleet 40
Network Regional
Focus airports ROV, KRR, AER, MRV
Destinations > 30
Avg. Frequency
/ Destination 10 flights per week
Fleet 10
Network Touristic destinations
(non-scheduled)
Focus airports -
Destinations -
Avg. Frequency
/ Destination -
Fleet 30
2018 Network Objectives 2018 Hub and Focus Airports
Source: Company data
http://en.wikipedia.org/wiki/File:Aeroflot_Logo_en.svg
232
235
240
182
196
204
135
157
179
0
112
192
59
100
135
0
176
80
Arial
22
44
66
37
Sheremetyevo Expansion to Support Future Growth
Sheremetyevo is expected to become one of the leading
airports in Europe as a result of the implementation of a
two-stage expansion programme
Stage 1 to be completed by 2017
– Third runaway construction (length: 3,200 metres,
width: 60 metres; able to host all types of aircraft)
– First stage of North Terminal reconstruction and
opening of underground tunnel connecting North and
South terminals
– Airport capacity to grow up to 42m PAX p.a.
Northern Terminal complex capacity to reach 32m
PAX p.a. upon first stage completion
Stage 2 to be completed by 2030
– Further development of the second landing area
– New terminal facilities with capacity of 64m PAX p.a.
– Total cargo traffic of up to 1,115m tons
Overview Sheremetyevo Site Layout
2.2%
North Terminal
Complex
South Terminal
Complex
Aircraft
Maintenance
To Moscow (link
with Non-stop
High speed
Railway Moscow -
S.Peterburg)
Sheremetyevsky
highway
Vehicle
Maintenance
Compound
Pier 1
Pier 2
Multilevel Car
Park
Terminal
D Terminal
E Terminal F
Terminal
G International
Highway
Hotel
Hotel
Sheremetyevo
Airport – Hotel
Railway
Station
To Moscow T
o M
osco
w
Cargo
Terminal
Runway 3
Runway 2
Runway 1
To Belorussky
Station (to
Moscow Centre)
Cargo Complex
Terminal
A
Business
Park
Terminal
C
Terminal
B
Multilevel
Car Park
Railway
Station Airport Administration
Offices
Conference Centre/Hotel
Interterminal
Tunnel
Source: Company data
232
235
240
182
196
204
135
157
179
0
112
192
59
100
135
0
176
80
Arial
22
44
66
38
Aeroflot vs European Network Carriers
Advantage
Financial performance
Best-in-class growth and profitability
Lower growth and profitability
Cost position
Superior cost position supported by a young and efficient fleet, high labour productivity and high utilisation rates
Uncompetitive, high cost base and lower labour productivity
Fleet age Average age: 4 years2
Average age: 11 years3
Domestic market growth opportunity
Significant growth potential in the Russian aviation market and powerful growth drivers (e.g., increasing penetration of air travel, large population, GDP/capita growth, expanding middle class, attractive domestic pricing, etc.)
Limited structural growth prospects in mature markets
Threat from LCCs
Limited LCC penetration which only applies to select international routes
Aeroflot is the first airline in Russia to launch an LCC-like carrier (ongoing project)
LCCs are a grave threat to the short- and medium-haul businesses of network carriers
LCCs, including large well-established players like Ryanair and easyJet, account for c. 1/3 of intra-European market
Regulatory environment
Restrictive environment limits new entrants/competition, supporting and protecting Aeroflot’s competitive position, particularly in the lucrative domestic market
Deregulated aviation market resulting in intense competition and structural overcapacity
Labour
No history of strikes or labour disruptions
Successfully concluded negotiations to extend the current collective bargaining agreement until 2017
Ongoing labour discord and regular threat of strikes
Recent strikes at Air-France KLM and Lufthansa, some of the worst in their recent history
Government support
Majority (51%) state-owned
Implicit state support and “back-stop”
Minority state-owned (Air France-KLM) or nil state ownership (IAG, Lufthansa)
Primary government focus on labour/employment issues
59.9% 15.0% 9.4%
2012A 2013A 1H 2014
16.1% 18.6% 13.4%
2012A 2013A 1H 2014
1.4% 1.7% 0.9%
2012A 2013A 1H 2014
10.4% 11.0% 8.5%
2012A 2013A 1H 2014
Source: Company information, equity research, FactSet as of October 30, 2014
Note: Aeroflot forecasts based on market consensus 1Average of Air France-KLM, IAG and Lufthansa; 2 Excluding subsidiary airlines; 3 Average of latest reported fleet figure by each airline
Revenue growth (y/y) Revenue growth (y/y)1 EBITDAR margin EBITDAR margin1
CASK 2013A (ex-fuel & total; $ cents) CASK 2013A (ex-fuel & total; $ cents)1
5.5 2013A 8.3 2013A7.8 12.2
http://www.lufthansagroup.com/en.html
232
235
240
182
196
204
135
157
179
0
112
192
59
100
135
0
176
80
Arial
22
44
66
39
Address: Midland Plaza, Arbat St. 10, 119002 Moscow, Russia
Tel: +7 (495) 258-06-86
E-mail: ir@aeroflot.ru
Web: www.aeroflot.ru
Investor Relations Contacts
Andrey Napolnov, CFA
Head of Investor Relations
Aeroflot – Russian Airlines
Tel: +7 (495) 258-06-86
E-mail: anapolnov-x@aeroflot.ru
anapolnov@aeroflot.ru
Nikolay Domrachev
Senior IR manager
Aeroflot – Russian Airlines
Tel: +7 (495) 258-06-86
E-mail: ndomrachev@aeroflot.ru
mailto:ir@aeroflot.ruhttp://www.aeroflot.ru/mailto:anapolnov-x@aeroflor.rumailto:anapolnov-x@aeroflor.rumailto:anapolnov-x@aeroflor.rumailto:anapolnov-x@aeroflot.ruRecommended