-
Aeroflot Group
Goldman Sachs 7th Annual CEEMEA One-on-One Conference
9-10 November 2015
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1. Market Update
2. Aeroflot Group Overview
3. Operating Performance
4. Revenue and Yield Management
5. Fleet Overview
6. Financial Performance
7. Capital Structure and Liquidity
8. Appendix
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29.2 32.7 35.4 39.246.3
20.2 22.9
41.2 47.356.2
64.465.5
30.0 25.3
70.580.1
91.6103.7
111.8
50.2 48.2
-10.0
10.0
30.0
50.0
70.0
90.0
110.0
130.0
150.0
2010 2011 2012 2013 2014 6M 2014 6M 2015
6.2 7.011.5 14.0
17.67.7 10.3
7.9 9.4
16.017.4
17.1
7.97.6
14.116.4
27.531.4
34.7
15.7 17.9
0.0
10.0
20.0
30.0
40.0
50.0
2010 2011 2012 2013 2014 6M 2014 6M 2015
Russian Air Transportation Market
Russian Total Passenger
Traffic
(m PAX)1,2
Aeroflot Group Passenger
Traffic
(m PAX)
14.0%
10.7%
(4.9)%
33.4%
• Russian air transportation market declined in 6M 2015 on the
back of macroeconomic instability, the decline primarily driven
by
international market segment
• Aeroflot Group outperformed Russian market in 6M 2015 growing
PAX by 14.0% with significant acceleration on domestic
routes as well as a slight slowdown on international routes
mainly driven by reshaping of the charter subsidiary
Source: TCH, Company estimates 1 Incl. foreign carriers’ traffic
2 Market based on passenger traffic of both domestic and foreign
carriers 3 In the charts, tables and text of this presentation,
immaterial deviations in calculation of % change, subtotals and
totals are due to rounding
37.0% 30.0% 20.5% 20.0% 31.2%
International2 19.2% 19.9% 28.5% 27.0% 26.1%
Domestic 21.2% 21.4% 32.5% 35.7% 38.1%
Aeroflot Group Overall Market Share2
30.3%
26.5% 29.8%
38.2% 44.9%
2010 – 2014 6M 2015/2014
(15.6)%
13.4%
22.5%
29.2%
International Routes Domestic Routes
31.1%
7.8%
(3.9%) CAGR FY09-14
Growth FY13-14
14.9%
14.2%
1.8%
18.0%
CAGR FY09-14
Growth FY13-14
(1.7%)
26.0%
Growth 6M 14-15
Growth 6M 14-15
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17.7%
13.5% 14.3% 15.1%
14.1% 10.6%
14.0%
(3.9)%
(8.1)% (7.5)% (4.6)%
0.3 % (3.2)%
(3.9)%
(13.8)%
(19.0)% (18.3)%
(14.1)%
(5.5)% (8.8)%
(12.2)%
Jan 15 Feb 15 Mar 15 Apr 15 May 15 June 15 6M2015
Aeroflot Group Total Market (incl. Foreign Airlines)
Total Market excl. Aeroflot Group
31.2%
11.4%
9.0% 9.0%
4.4%
17.4%
17.5%
37.0%
12.0% 9.7%
7.2%
4.7%
14.6%
14.9%
Aeroflot Group Market Position
• Continuing growth in the number of passengers of Aeroflot
Group despite unfavourable macroeconomic situation
• Aeroflot Group market share expansion amid domestic competitor
weakness and foreign carriers scaling down Russian operations
Source: TCH, Rosaviatsia, Company estimates 1 Based on passenger
traffic of both domestic and foreign carriers 2 Growth in number of
passengers excluding Sochi destination. Lower l-f-l growth in
February 2015 is
associated with 2014 Sochi Olympics impact
Increasing Market Share1 (PAX)
Foreign Airlines
6M 2014 6M 2015
Faster Growth vs. Russian Market1 (PAX)
17.8%2 Y-o-y
Increase in PAX y-o-y (mln)
Increase in Aeroflot Group Passenger Number
+2.2
+0.0
+0.2
(1.8)
(0.0)
(1.7) (0.8)
m PAX, 6M 2015
Other Russian Airlines
+5.8 p.p.
17.9
5.8
4.7
3.5
2.3
7.0 7.2
AeroflotGroup
Transaero S7 Group UTairGroup
UralAirlines
ForeignCarriers
OtherRussianCarriers
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10.3% 8.3% 9.3%
13.0%
6.1% 6.4% 8.7%
(4.6)% (10.9)% (9.1)%
(3.1)% (3.0)% (0.9)%
(4.9)%
(14.0)%
(23.3)% (21.1)%
(13.6)% (8.6)%
(5.1)%
(13.5)%
Jan 15 Feb 15 Mar 15 Apr 15 May 15 June 15 6M2015
Aeroflot Group Russian Carriers Russian Carriers excl. Aeroflot
Group
1.1 0.8
1.0 1.1
1.6 1.5
7.0
January February March April May June 6M 2015
23.8%
18.3%
5.3%
52.6%
Transaero
UTAir
Ural Airlines
Other comps
Domestic Carriers Cutting Capacity1 (ASK) Russian Peers Capacity
Optimization (ASK phase out)
Capacity Optimization by Russian and Foreign Airlines
• Capacity optimization by key major domestic and foreign
players supported by Group’s proactive approach in
capacity management are the key drivers of Aeroflot market share
expansion
Source: TCH, Rosaviatsia, Company estimates 1 Based on data for
domestic carriers only
Other Russian airlines
Y-o-y 6M 2015 vs. 6M 2014
International Carriers Traffic Dynamics International Peers
Capacity Optimization
Regional flights suspension;
Consolidation of flights in DME
Significant reduction of flights to Russian regions
Reduction of flights to Russia by 20%;
Scaling down plans to open new destinations in Russia
Expected reduction of frequencies to Russian destinations
Flights from Hong Kong to Moscow suspended from 1 June
Flights from Bangkok to Moscow suspended from 29 March
New York – Moscow flight frequency reduced;
Moscow destination to be suspended from December 1
Moscow – St. Petersburg flight frequency reduction
London – Moscow flight frequency reduced to one flight
daily;
suspension of flights starting from mid-March
Threefold Abu-Dhabi – Moscow flight frequency reduction
(21.3%)
(27.4%)
Y-o-y change in PAX x%
(24.9%) (20.9%)
(3.9%) (22.6%)
(19.6%)
m PAX
11,949 mln ASK phased
out in 6M 2015
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3.4
2.7
1.6 1.5
0.8
UK USA Turkey EU-27 Russia
29.2 32.7
35.4 39.2
46.3
22.9
2010 2011 2012 2013 2014 6M 2015
6.2 7.0
11.5
14.0
17.6
10.3
2010 2011 2012 2013 2014 6M 2015
119.6 114.8 116.5 110.7 102.8
43.4
2010 2011 2012 2013 2014 6M 2015
Growth Potential of Russian Air Transportation Market
• Russian Civil Aviation Market and Aeroflot Group in particular
continue to benefit from redistribution of passenger traffic
between air travel and rail Source: TCH, Aeroflot Group, Russian
Railways 1 Data as of 2014 2 2025E 3 Pro-forma growth including
results of acquired subsidiaries for 12m 2011; growth rate of the
indicator in 12M 2012 on a consolidated basis amounted to 65.3%
Russian Market Remains Significantly Underpenetrated Domestic
Passenger Traffic (Russian Civil Aviation)
Domestic Long-haul Rail Traffic (Russian Railways)
m PAX
m PAX m PAX
X.X% Growth/decline in PAX, Y-o-Y
(0.0%) (4.0%) (5.0%)
12.0% 8.1%
10.8%
17.9%
26.5% 12.9%
23.7%3 21.7%
Airline PAX per capita per year1
22.6%
1.5%
26.0%
1.22
Domestic Passenger Traffic (Aeroflot Group)
(7.1%)
(6.4%)
33.4%
13.5%
0.3
Domestic PAX per capita
2.1
0.5 0.9 0.3
0.3
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1. Market Update
2. Aeroflot Group Overview
3. Operating Performance
4. Revenue and Yield Management
5. Fleet Overview
6. Financial Performance
7. Capital Structure and Liquidity
8. Appendix
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Successful Multi-branding Strategy
Source: Company data 1 PAX contribution as of 6M 2015. Absolute
number of passengers in million in green circle
• Flagship carrier
• Premium product
• High income, middle class, leisure
segment
• Focus on direct and transit routes via
St. Petersburg
• Middle class segment
• Short- and mid-haul direct domestic
routes in the South of Russia
• Middle class segment
• The Far East airline flying on short-
and mid-haul direct international and
domestic routes
• Middle class segment
• Strategic review completed
• Leisure segment significantly
reduced
• Short and mid-haul
• Point-to-point budget passenger
carrier
• Moscow
(Sheremetyevo)
• Saint-Petersburg
(Pulkovo)
• Rostov-on-Don,
Krasnodar, Sochi,
Mineralnye Vody
• Vladivostok,
Khabarovsk, Yuzhno-
Sakhalinsk
• Orenburg,
Domodedovo,
Vnukovo (Moscow)
• Vnukovo (Moscow)
67.1%
13.1%
4.1%
2.8%
6.2%
Network/ Scheduled
Regional
Leisure and budget
Low Cost
Business Model Focus Airport PAX Contribution1 Brand
6.7%
12.0
1.1
2.3
0.7
0.5
1.2
100%
17.9
Total PAX (mln) • Multi-brand offering to capture customers in
every market segment from premium to low-budget
• Wide geographic coverage of the Russian market
• Additional steps taken to simplify operational structure of
regional companies
PAX Growth
(8.3%)
9.3%
7.8%
8.7%
14.0%
(4.2%)
n/a
6M 2015 6M 2015
y-o-y
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40
79
110
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215 237
283
Dec Jan Feb Mar Apr May June
Description
• Operating from Vnukovo airport
• Regional network comprising
– 15 regular destinations
– 37 routes in the summer schedule (including seasonal)
• Fleet of 12 Boeing 737-800 NG (189 seats per plane)
Status
• December 2014 - First flight performed from Moscow to
Volgograd
• March 2015 - Seasonal summer route announcement
• April 2015 - Pobeda becomes Top-10 airline in Russia
• June 2015 - Cumulated PAX reached 1 mln
2018
Targets
• c. 10m passengers
• 40 aircraft
• 47 routes (including CIS and international routes)
6M 2015 Route Operational Data
Overview of Pobeda Pobeda’s Network
• Pobeda, the only Russian LCC, is a timely value proposition to
cost conscious passengers
• Recently launched, the company has been demonstrating solid
growth and attracting substantial customer attention
Source: Company data
Low Cost Carrier ‒ Pobeda
Monthly Operating Results
Surgut
MoscowPerm
Tumen
Ekaterinburg
Samara
Kazan
BelgorodVolgograd
Makhachkala
Nizhnevartovsk
Vladikavkaz
Astrakhan
Arkhangelsk
Sochi
Gelenzhik
30 Anapa
Omsk
Moscow
Surgut
72
72
60
64 98
65 30
40
4
30
35
125 30
9
8
4
5
34
69
5
4
5 Kazan
Ufa
Rostov
Magnitogorsk
Ulyanovsk
Perm Ekaterinburg
Kirov
Chelyabinsk
Khanty-Mansiysk
Belgorod
Volgograd
Tyumen
Routes from Moscow Routes from Sochi Routes From Anapa
Frequency per Month (one-way) #
62% 76% 77% 83% 82% 81% 82%
thd PAX Seat Load Factor, %
Regular routes88.6%
Sochi and
Anapa
summer routes11.4%
Top 5 routes of the airline, thd PAX
170
106
102
88
87
Yekaterinburg
Volgograd
Perm
Ufa
Tumen
PAX by regular and seasonal routes, %
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This map is saved in Dealworks folder 1873584-001.pptx
Aeroflot routes
Rossiya routes
Donavia routes
Aurora routes
Orenair routes
Guangzhou
Simferopol Anapa
Abakan
Sochi
Arkhangelsk
Astrakhan
Chita Irkutsk
Kaliningrad Krasnoyarsk
St. Petersburg Nizhnevartovsk
Novy Urengoy
Omsk
Surgut
Ekaterinburg
Tyumen Tomsk
Yu. Sakhalinsk
Volgograd
Bishkek
Baku
Kiev
Karaganda
Minsk
Odessa
Beirut
Dubai
Teheran
Tel Aviv Cairo
Bangkok
Deli
Hanoi Hong Kong
Phuket
Male
Shanghai
Ho Chi Minh
Ulaanbaatar
Almaty
Stockholm
Barcelona
Paris
Dusseldorf
Yerevan
Geneva
Hamburg
Larnaca
Milan
Nice
Prague
Syktyvkar
Samarkand
Berlin Astana
Vienna Rostov
Vladivostok
Tokyo
Beijing
Busan
Harbin
Magadan
Murmansk
Rome
MOSCOW
Yakutsk
P. Kamchatsky
Antalya
Tivat Varna
Khudzhand
Blagoveshchensk
Istanbul
Havana
Washington New York
Los Angeles
Miami
Seoul
10.2
8.0
13.5
10.8
5.8
11.2
9.2
13.411.8
6.5
Scheduled International Domestic Medium-haul Long-haul
6M 2014 6M 2015
Average Scheduled Flight Frequency per Route2
• Key focus on network quality, i.e. frequencies and
connectivity, alongside with intelligent growth in destination
number
• Aeroflot Group is operating flights to 142 unique destinations
in 53 countries (in summer 2015 schedule)
• During 6M 2015 Aeroflot continued to develop its network
adding new regular destinations in Russia (Murmansk, Arkhangelsk,
Voronezh) and Samarkand (CIS)
Aeroflot Group Network
(6M 2015/2014)
# of Flights Evolution by Region1 Geographic Network – Summer
2015 Schedule
10.2%
15.9%
(0.7%)
9.3%
12.1%
Note: 1 Scheduled flights of Aeroflot Group; 2 Average weekly
frequency per route
This map is saved in Dealworks folder 1873584-001.pptx
Tenerife
Stuttgart
Amsterdam
Malaga
Stockholm
Athens Antalya
Barcelona
Belgrade
Bologna
Brussels
Budapest Paris
Copenhagen
Dresden
Rome
Frankfurt
Geneva
Hamburg
Helsinki
Heraklion
Istanbul
Larnaca
London
Madrid
Munich
Milan Nice
Oslo
Bucharest
Prague
Riga
Thessaloniki
Sofia Split
Berlin
Tbilisi
Tivat
Tallinn
Venice
Vienna
Vilnius
Warsaw
Zagreb Zurich
MOSCOW
Dusseldorf
12.5 %
(2.1)%
(0.1)%
(28.1)%
6.6 %
4.9 %
21.4 %
Total
Middle East and Africa
CIS
North and Central America
Asia
Europe
Russia
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10.6% 11.6% 11.8% 15.3%
15.0% 16.0% 16.7%
16.0%
7.1% 7.9%
10.7% 11.6%
2012 2013 2014 1H 2015Domestic - DomesticInternational -
Domestic / Domestic - InternationalInternational -
International
Connectivity ratio
Aeroflot is Uniquely Positioned to Capture Growing Transit
Passenger Flows
Source: Company data, IMF, Eurostat, RITA, Russian State
Statistics Service, Rosaviatsia, Airbus Global Market Forecast
2014-2033 1 Data for PJSC “Aeroflot” own flights
Share of Transit of Aeroflot airline in Sheremetyevo
42.9% 39.2% 32.7%
Moscow
Beijing
Seoul
Shanghai
Erevan
Tel Aviv
Kiev
London
Rome New York
Los Angeles
Hanoi
Paris
Berlin
Aeroflot’s top-10 transit routes in terms of PAX, 6M 2015
Prague Milano
Average weekly frequency per route
9.5%
8.9%
CAGR
2012-2014
5.6%
Increasing Frequency of Flights1 Improves
Connectivity…
Well Positioned to Capture Profitable Transit Flows
on Key Global Routes…
…and Supports Aeroflot’s Transit Traffic Growth in
Sheremetyevo
… Resulted in Increased Traffic Turnover with Key
Destinations
To/from Asia To/from Europe
35.5%
2.02.2 2.3
1.11.3
2012 2013 2014 6M2014
6M2015
6.57.2 7.6
3.5 3.7
2012 2013 2014 6M2014
6M2015
Total Group’s traffic on scheduled flights, m PAX
• Aeroflot is the only Russian airline that is able to benefit
from the growing passenger flows between Europe and Asia
• Tactical increase in Europe-Asia transit supports traffic on
Aeroflot’s international routes, promotes image of Aeroflot as a
modern carrier with young fleet and quality service and may become
additional contributor to the long-term strategy execution
•
9.7 10.7
11.5 12.4
18.2 19.3
20.3 21.9
12.0 13.2
14.4 15.7
11.0x 12.7x 13.5x 13.9x
2012 2013 2014 6М 2015
International
Domestic
Combined
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Improved network convenience
(frequencies up by 10.2%)
Balanced global network
and strategic partnerships
based on the hub in
Sheremetyevo
• Diversified network balanced between the regions with
different demand drivers
• The only Russian airline to capture selected profitable
transit flows on key global
routes via hub in Sheremetyevo
• Partnerships and JVs with international airlines, membership
in SkyTeam
Increased number of international
transit passengers supporting load
factors and contributing to Group’s
revenue growth
Opportune Time for Aeroflot
• Group’s offering covers various price segments from up-scale
to low budget
economy
• Pobeda, the only domestic LCC currently in Russia, is a timely
value proposition
to cost conscious passengers - recently launched, the company
has been
demonstrating solid growth and attracting substantial customer
attention
Diversified product
offering
High quality service and
reliable operations
Efficient operating model
underpinned by thorough
cost management
• Substantial savings in fuel and maintenance costs as a result
of young fleet
• Cost control programs targeting higher fuel efficiency
• High labour productivity
• Extremely efficient fleet strategy: five major aircraft types
for the Group working
in different market segments is unmatched anywhere in the
world.
• Young western-built fleet easily transferable from one route
to another
• High quality service recognized by numerous international
awards and reliable
operations support customer retention
• Tourists switch to self-booking and to regular airlines after
turmoil in the tour
operators industry
1
2
3
4
Aeroflot was able to transform complicated environment into
growth factor and significantly increased market share.
Competitive Strengths Description 6M’15 Results Checklist
Increased market share both on domestic and international
routes
Strong PAX growth of Aeroflot
domestically and internationally
Pobeda becomes Top-10
airline in Russia
Orenair demonstrates
improving trends in operational
results
Aeroflot - Best Airline in Eastern
Europe 2015 (by Skytrax for the
4th time)
Continued phase-out of
outdated aircraft in the fleet
Double digit growth of yields
and RASK
Manageable growth of the operating costs despite high
pressure from the FX
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1. Market Update
2. Aeroflot Group Overview
3. Operating Performance
4. Revenue and Yield Management
5. Fleet Overview
6. Financial Performance
7. Capital Structure and Liquidity
8. Appendix
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Jan Feb Mar Apr May Jun Jul Aug Sep
8.5 7.8
8.8 8.5
9.9 10.6 11.3
11.3 10.6
9.4 8.4
9.6 9.6 10.5
11.3 11.9 12.0 11.2
Jan Feb Mar Apr May Jun Jul Aug Sep
6.2 5.6
6.5 6.6 7.3
8.6
9.8 9.8
8.6
6.8 6.3
7.2 7.2 7.9
9.2
10.3 10.5
9.1
Jan Feb Mar Apr May Jun Jul Aug Sep
2.3 2.22.5 2.5
2.9
3.43.8 3.8
3.3
2.72.4
2.8 2.93.3
3.7
4.2 4.3
3.7
Jan Feb Mar Apr May Jun Jul Aug Sep
Monthly Seat Load Factor (%) Monthly ASK (bn ask)
9M 2015: LF 79.3%, increase of 0.1 p.p. September 2015: LF
81.3%, increase of 0.4 p.p.
9M 2015: +7.6% Y-o-Y September 2015: +5.8% Y-o-Y
Aeroflot Group YTD Monthly Operating Results
• Passenger traffic growth of 13.3% in 9M 2015 • Moderate growth
of ASK (7.6%) and RPK (7.7%) impacted by restructuring of fleet and
network optimization at subsidiaries level • Load factor of 79.3%
in 9M 2015 supported by stable demand for the Group’s air
transportation services
17.7% 13.5% 14.3% 15.1% 10.5% 10.6% 9.6% 8.3%
10.3% 8.3%
9.3% 13.0%
0.1
1.6 0.2 (3.2)
9M 2015: +13.3% Y-o-Y September 2015: +13.3% Y-o-Y
Monthly Passenger Traffic (m PAX) Monthly Passenger Turnover (bn
pkm)
9M 2015: +7.7% Y-o-Y September 2015: +6.3% Y-o-Y
72.5% 74.3% 74.8% 74.4%
2014 2015 Seat load factor in respective period of 2015
% Y-o-Y increase 2014 2015 p.p. Y-o-y change in seat load
factor
%
14.1% 7.9%
6.1%
75.7%
1.3
10.6% 6.3%
6.4%
81.1%
(0.1)
10.6% 13.0% 6.0% 6.8%
5.6% 6.0%
0.3 0.7
86.9% 87.4%
13.3% 6.3%
5.8%
81.3%
0.4
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• Strong double-digit PAX growth on domestic market throughout
the year on the back of increasing capacity
• Relatively stable seat-load factor despite softer demand for
international travel as a result of intelligent capacity
management
• Stronger performance of Aeroflot airline compared to Aeroflot
Group on international markets
Operating Data – Q3 & 9M 2015
Indicator Unit
Aeroflot airline Aeroflot Group
Q3
2014
Q3
2015 Y-o-Y
9M
2014
9M
2015 Y-o-Y
Q3
2014
Q3
2015 Y-o-Y
9M
2014
9M
2015 Y-o-Y
Passenger Traffic th PAX 6,871 7,689 11.9% 17,833 19,669 10.3%
10,865 12,199 12.3% 26,531 30,054 13.3%
International Routes th PAX 3,494 3,836 9.8% 9,412 10,193 8.3%
5,339 4,716 (11.7%) 13,287 12,274 (7.6%)
Domestic Routes th PAX 3,377 3,852 14.1% 8,420 9,476 12.5% 5,527
7,483 35.4% 13,244 17,779 34.2%
Passenger Turnover m pkm 19,557 21,705 11.0% 50,728 55,871 10.1%
28,181 29,975 6.4% 69,109 74,453 7.7%
International Routes m pkm 11,982 13,061 9.0% 32,187 35,302 9.7%
16,945 15,165 (10.5%) 42,732 40,184 (6.0%)
Domestic Routes m pkm 7,576 8,645 14.1% 18,541 20,570 10.9%
11,236 14,810 31.8% 26,377 34,270 29.9%
Passenger Capacity m ASK 23,094 25,231 9.3% 63,844 69,650 9.1%
33,231 35,152 5.8% 87,298 93,941 7.6%
International Routes m ASK 14,583 15,386 5.5% 41,648 44,502 6.9%
20,478 17,927 (12.5%) 55,037 50,934 (7.5%)
Domestic Routes m ASK 8,512 9,845 15.7% 22,196 25,148 13.3%
12,754 17,225 35.1% 32,260 43,007 33.3%
Seat Load Factor % 84.7% 86.0% 1.3 p.p. 79.5% 80.2% 0.7 p.p.
84.8% 85.3% 0.5 p.p. 79.2% 79.3% 0.1 p.p.
International Routes % 82.2% 84.9% 2.7 p.p. 77.3% 79.3% 2.0 p.p.
82.8% 84.6% 1.8 p.p. 77.6% 78.9% 1.3 p.p.
Domestic Routes % 89.0% 87.8% (1.2 p.p.) 83.5% 81.8% (1.7 p.p.)
88.1% 86.0% (2.1 p.p.) 81.8% 79.7% (2.1 p.p.)
Tonne-Kilometres m tkm 1,928 2,094 8.6% 5,042 5,465 8.4% 2,716
2,848 4.9% 6,725 7,169 6.6%
International Routes m tkm 1,171 1,256 7.3% 3,173 3,443 8.5%
1,620 1,447 (10.7%) 4,128 3,886 (5.8%)
Domestic Routes m tkm 758 838 10.6% 1,868 2,023 8.3% 1,096 1,401
27.9% 2,597 3,282 26.4%
Flight Hours hours 146,603 157,477 7.4% 412,797 443,557 7.5%
229,893 237,905 3.5% 613,324 649,891 6.0%
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1. Market Update
2. Aeroflot Group Overview
3. Operating Performance
4. Revenue and Yield Management
5. Fleet Overview
6. Financial Performance
7. Capital Structure and Liquidity
8. Appendix
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Revenue Analysis
1 Data presented based on management accounting 2 Data presented
based on management accounting for Aeroflot airline and routes of
subsidiary airlines under commercial management of Aeroflot
6M 2014 6M 2015 Change
Russia 42,965 57,422 33.6%
Europe 30,855 36,794 19.2%
Asia 15,378 24,381 58.5%
CIS 7,359 9,076 23.3%
Americas 7,665 8,357 9.0%
Middle East 6,599 8,056 22.1%
Total 110,823 144,087 30.0%
6M 2015
6M 2015
Traffic Revenue Breakdown by Type
Scheduled Traffic Revenue Breakdown
Revenue from Scheduled Passengers (RUBm)1
• In H1 2015 revenue from scheduled passengers grew by 30.0% on
the back of revenue growth across all regions
• Key drivers of revenue growth are Russian, European, Asian
markets
by point of sale2 by region
Sheduled Passenger
Flights95.7%
Charter Passenger
Flights1.4%
Cargo2.9%
Russia39.9%
Europe25.5%
Asia16.9%
Americas5.8%CIS
6.3%
Middle East5.6%
On-line23.5%
Call center and
ow n branches
4.0%
Sales in Russia
41.7%
Sales abroad
30.9%
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2.933.29 3.34
6M 2014 6M 2015 6M 2015(Excluding Pobeda)
Scheduled Flights Revenue Units
• Active revenue management strategy translates into gradual
increase in yields
• Positive impact of RUB devaluation and subsequent increase in
RUB yields for inbound and transit routes
• Negative impact of EUR-denominated fare reduction for outbound
flights from Russia is being gradually eliminated
• Domestic yields are affected by aggressive pricing strategy of
domestic competitors 1 Data presented based on management
accounting
Traffic Yield: PAX Revenue / RPK (RUB / RPK) Traffic RASK: PAX
Revenue / ASK (RUB / ASK)
6M 2015
Yield: PAX Revenue / RPK (RUB / RPK)1 RASK: PAX Revenue / ASK
(RUB / ASK)1
13.8%
2.212.48 2.52
6M 2014 6M 2015 6M 2015(Excluding Pobeda)
6M 2015
12.4% 13.9%
6M 2015 6M 2015
2.993.55
International
2.85 2.95
Domestic
3.05
Domestic(excluding Pobeda)
18.7% 3.7% 7.0%
2.21
2.69
International
2.21 2.23
Domestic
2.29
Domestic(excluding Pobeda)
21.6%
0.7% 3.3%
12.0%
x.x% x.x% 2014 2015 Y-o-Y increase
(excluding Pobeda) (excluding Pobeda)
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1. Market Update
2. Aeroflot Group Overview
3. Operating Performance
4. Revenue and Yield Management
5. Fleet Overview
6. Financial Performance
7. Capital Structure and Liquidity
8. Appendix
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4.1
4.3
4.4
4.5
4.8
5.2
5.5
5.5
5.5
5.6
5.7
5.8
5.9
6.0
6.0
6.1
6.2
6.5
9.0
11.1
11.3
11.6
12.6
13.4
16.5
17.0
Azul
Hainan Airlines
Lion Air
Garuda Indonesia
Sichuan Airlines
China Eastern Airlines
Qatar Airways
Republic Airlines
Xiamen Airlines
Etihad Airways
Virgin Australia
Shenzhen Airlines
Air China
Jet Airways
easyJet
Turkish Airlines (THY)
Emirates Airline
KLM Royal Dutch Airlines
Lufthansa
Air France
American Airlines
British Airways
United Airlines
Transaero Airlines
Delta Airlines
109 125 140 150 161
5.3 5.2 5.2
4.1 4.3
2011 2012 2013 2014 6M 2015
Aircraft Average Age
209 222 232 251 258
10.4
8.8 7.7
7.0 6.5
2011 2012 2013 2014 6M 2015
Aircraft Average Age
• Aeroflot operates one of the youngest fleets in the industry
among airlines with active fleet of 100+ aircraft
• Aeroflot achieved significant progress in fleet renewal both
for Aeroflot airline and for the Group
Aeroflot Group Fleet in Operation 1
Aeroflot Airline Fleet in Operation 1
Average Age of the Fleet 2
1 Excludes planes out of operation 2 Average Fleet Age of
Selected Airlines with Active Fleet of 100+ Aircraft According to
ACAS Statistics Excluding Aeroflot (as of June 2015) excluding
planes out of operation 3 Predominantly regional aircraft
Aeroflot Group Fleet Overview
3
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Aeroflot Group Fleet Structure
• Continued renewal of fleet, replacing older aircraft with
modern fuel-efficient aircraft
• Disciplined approach to adding new capacity to the market
1 Excluding 1 An-24 aircraft , 1 IL-96 (as of 30 June 2015 Group
owned 1 IL-96 aircraft; 5 aircraft as of 31 December 2014; 6
aircraft as of 31 December 2013) and 3 DHC-8 (as of 30 June 2015
these aircraft were in the process of commissioning)
Type Aeroflot Subsidiaries Financial
Lease
Operating
Lease
Total as of
30-Jun-2015
Total as of
31-Dec-2014
Change vs.
31-Dec-2014
Lo
ng
-hau
l
Boeing 767 - 3 - 3 3 3 -
Airbus A330 22 - 8 14 22 22 -
Boeing 777 13 3 10 6 16 13 3
Total 35 6 18 23 41 38 3
Med
ium
-hau
l
Airbus A319 7 33 13 27 40 39 1
Airbus A320 63 11 1 73 74 75 (1)
Airbus A321 26 - 21 5 26 26 -
Boeing 737 10 32 2 40 42 43 (1)
Total 106 76 37 145 182 183 (1)
Sh
ort
-hau
l
DHC 8 - 7 - 7 7 7 -
DHC 6 - 2 - 2 2 2 -
An 148 - 6 6 - 6 6 -
SSJ 100 20 - - 20 20 16 4
Total 20 15 6 29 35 31 4
Total fleet1 161 97 61 197 258 252 6
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Type of Aircraft Delivered during 6M 2015 H2 2015 2016 2017 2018
2019 - 2024
Long-haul 3 - 2 1 5 17
B777 3 - 2 1 - -
A350 - - - - 5 17
Medium-haul 9 5 24 32 23 -
A319 1 - - - - -
A320 - - 9 11 10 -
A321 - - 7 8 4 -
B737 8 5 8 13 9 -
Short-haul 4 9 14 10 - -
SSJ100 4 8 12 10 - -
DHC-8 - 1 2 - - -
Total1 16 14 40 43 28 17
Aeroflot Group Fleet Order and Phase-Out Schedule
• Net addition of two aircraft in 6M 2015
• Further progress in rescheduling deliveries for long-haul and
medium haul aircraft in conjunction with adjustments in the
Group’s
strategy
Total Aircraft Delivery Schedule in Accordance with Existing
Contracts
Aircraft Phase-Out Schedule in Accordance with Existing
Contracts
Type of Aircraft Phased out during 6M 2015 H2 2015 2016 2017
2018 2019 - 2024
Long-haul 4 - 1 2 3 22
B767 - - - 1 2 -
B777 - - 1 1 1 -
A330 - - - - - 22
Il-96 4 - - - - -
Medium-haul 10 5 15 13 29 73
A319 - 4 - 6 7 23
A320 1 - 6 3 17 30
A321 - - 3 - 4 14
B737 9 1 6 4 1 6
Short-haul - 3 1 1 1 11
DHC-8 - 3 1 1 1 1
SSJ100 - - - - - 10
Total 14 8 17 16 33 106
1 Excluding 3 DHC-8 (as of 30 June 2015 these aircraft were in
the process of commissioning)
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1. Market Update
2. Aeroflot Group Overview
3. Operating Performance
4. Revenue and Yield Management
5. Fleet Overview
6. Financial Performance
7. Capital Structure and Liquidity
8. Appendix
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RUBm
(where applicable) 6M 2014 6M 2015 Change
Revenue 140,281 176,467 25.8 %
EBITDAR1 16,656 33,252 99.6 %
EBITDAR1 margin 11.9 % 18.8 % 6.9p.p.
EBITDA 5,029 13,311 >2x
EBITDA margin 3.6 % 7.5 % 3.9p.p.
Operating profit/(loss) (1,384) 5,866 n/a
Operating margin neg. margin 3.3% n/a
Net loss (1,905) (3,541) n/a
Net margin neg. margin neg. margin n/a
Net income adjusted for NRE2 375 3,414 >9x
Adjusted net income margin 0.3 % 1.9 % 1.6p.p.
Financial Highlights
• Revenue growth driven by expanding passenger traffic, active
revenue management and positive impact from currency
devaluation.
• Increase in EBITDAR and EBITDA margins in 6M 2015 y-o-y on the
back of revenue growth and strict effective cost control.
1 EBITDAR = EBITDA + operating lease expenses; 2 Non-recurring
expenses in 2015 include pre-term return of aircraft at Orenair and
Rossiya airlines, fixed assets write off at Vladavia, derivatives
and FX effects
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140,281
176,467
9,718
30,904 (4,436)
6M 2014 Volume Currency Pricing* 6M 2015
Revenue Analysis
• Positive contribution of volume and RUB devaluation to revenue
growth was partially offset by softer fare policy in hard
currency terms in the volatile macro environment
RU
Bm
* Pricing factor includes other factors which influenced revenue
growth
Net positive impact of RUB 26,468m
25.8%
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% in Total Operating
Expense
Operating Expense
(RUB million If not stated otherwise) 6M 2014 6M 2015 Change
Change
ex. FX & NRE
26.2% Fuel 40,236 44,714 11.1 % (19.7)%
Opex (ex. Fuel) 101,429 125,887 24.1 % 5.3 %
20.2% Aircraft, Traffic and Passenger Servicing 27,714 34,516
24.5 % 8.0 %
16.0% Staff 24,305 27,235 12.1 % 9.9 %
11.7% Operating Lease 11,627 19,941 71.5 % 14.9 %
7.7% Maintenance 9,268 13,098 41.3 % 0.3 %
6.7% SG&A1 8,975 11,479 27.9 % 17.5 %
4.4% D&A and Customs Duties 6,414 7,445 16.1 % 16.1 %
7.1% Other Expenses2 13,126 12,173 (7.3)% (33.4)%
100.0% Total Opex 141,665 170,601 20.4 % (1.9) %
Cost Analysis
• In 6M 2015 operating costs were significantly impacted by
expansion of operations and RUB depreciation which mostly
affected fuel expenses, operating lease expense, maintenance and
aircraft, traffic and passenger servicing costs
1 Includes sales and marketing expenses and administration and
general expenses 2 Other expenses include VAT under code-sharing
agreement with Rossiya Airlines and fuel excise reimbursement
during 6M 2015
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0.01 0.02 0.05
0.07
0.12
0.01 0.03 (0.03)
0.53 0.04
2.62
2.90
2.33
2.62
CASK 6M2014
Staff Fuel Maintenance Air, Traffic andPAX
OperatingLease
D&A and CD* Admin & Sales& Marketing
Other Costs(ex. NRE**)
CASK 6M2015
FX NRE** CASK 6M2015 ex. FXand NRE**
CASK 6M2014
Group Unit Costs
• Cost per ASK increased by 10.8% from RUB 2.62 in 6M 2014 to
RUB 2.90 in 6M2015 on the back of operating expenses increase
due to negative FX effects
• Efficient CASK management during the reporting period (net of
FX) * Customs duties ** Non-recurring expenses include pre-term
return of aircraft at Orenair and Rossiya Airlines, fixed assets
write off at Vladavia
Operating Expense 6M 2014 6M 2015 Change
Fuel 0.74 0.76 2.2 %
Opex (ex. Fuel): 1.88 2.14 14.1 %
Aircraft, Traffic and Passenger Servicing 0.51 0.59 14.5 %
Staff 0.45 0.46 3.1 %
Operating Lease 0.22 0.34 57.7 %
Maintenance 0.17 0.22 30.0 %
SG&A 0.17 0.20 17.6 %
D&A and Customs Duties 0.12 0.13 6.7 %
Other Expenses 0.24 0.21 (14.7)%
Total Opex 2.62 2.90 10.8 %
Cost per ASK (RUB)
(19.7)% 10.8%
(11.1)%
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Effective Cost Management and Productivity Gains
• Aeroflot is achieving efficiency gains in fuel costs as new
aircraft are put into operation, while old and less fuel-efficient
ones
are in the process of phase out
• Significant improvement in labour productivity has resulted in
increasing PAX traffic per employee
Flight Hours
7.4%
Fuel Consumption per ASK Fuel Consumption per TKM
(2.0 %) (2.7%)
383
412
6M 2014 6M 2015
23.7 23.2
6M 2014 6M 2015
197.8 192.4
6M 2014 6M 2015
PAX Traffic Revenue / Avg. Airlines Headcount PAX Traffic / Avg.
Airlines Headcount
4,425
5,238
6M 2014 6M 2015
569 621
6M 2014 6M 2015
9.1% 18.4%
(th hours) (gr/ASK) (gr/TKM)
(RUB ‘000 per employee) (passengers per employee)
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5,029
9,718 (4,436)
30,904 (31,448)
7,907
(2,405)
(2,208) (1,729)
(1,569)
3,547
13,311
2,206
15,517
EB
ITD
A 6
M 2
01
4
Volu
me
Pricin
g*
FX
be
ne
fit
FX
dra
g
Fue
l**
Sta
ff**
Aircra
ft, T
raffic
and
PA
X**
Op
era
tin
g L
ea
ses**
Adm
in &
Sale
s &
Mark
etin
g**
Oth
er
OP
EX
**
EB
ITD
A 6
M 2
01
5
NR
E**
*
Adju
ste
d E
BIT
DA
6M
201
5
(RUBm)
EBITDA Evolution
∑=0
Net FX
∑=(544) RUBm
* Pricing and other factors
** Excluding currency impact
*** Non-recurring expenses include pre-term return of aircraft
at Orenair and Rossiya airlines, fixed assets write off at
Vladavia
• FX impact on operating costs was almost offset by positive
contribution of FX change to revenue
• Net of FX effect decrease in fuel price offset the increase in
key operating costs
• Key driver of EBITDA increase is the growth in size and scale
of operations and other operating income
Net effect Net volume and price
∑=5,282 RUBm
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(1,384)
9,718 (4,436)
30,904 (31,448)
7,907
(2,405)
(2,208) (1,729)
(1,031) (1,569)
3,547
5,866
2,206
8,072
Op
era
tin
g I
nco
me
6M
201
4
Volu
me
Pricin
g*
FX
be
ne
fit
FX
dra
g
Fue
l**
Sta
ff**
Aircra
ft, T
raffic
and
PA
X**
Op
era
tin
g L
ea
ses**
D&
A a
nd
CD
***
Adm
in &
Sale
s &
Mark
etin
g
Oth
er
OP
EX
Op
era
tin
g I
nco
me
6M
201
5
NR
E**
**
Adju
ste
d O
pe
rating
Incom
e 6
M 2
01
5
Operating Income Evolution
(RUBm)
Net effect
∑=(1,035) RUBm
Net FX
∑=(544) RUBm
* Pricing and other factors
** Excluding currency impact
*** Custom Duties
**** Non-recurring expenses include pre-term return of aircraft
at Orenair and Rossiya Airlines, fixed assets write off at
Vladavia
• FX impact on operating costs was almost offset by positive
contribution of FX change to revenue
• Net of FX effect decrease in fuel price almost offset the
increase in key operating costs
• Key driver of operating income increase is the growth in size
and scale of operation and other operating income
Net volume and price
∑=5,282 RUBm
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6M Adjusted Operating Income Build-Up (RUBm)
Adjusted Operating and Net Income Analysis
• Aeroflot Group remained profitable on net income basis
adjusted for FX fluctuations related PDP refund and
non-recurring
provisions
6M Adjusted Net Income Build-Up (RUBm)
5,866
8,072
1,639 567
Operating Income 6M 2015 Pre-term return of aircraft at Orenair
andRossiya Airlines
FA write off at Vladavia Adjusted Operating Income 6M 2015
(3,541)
3,414
(5,351)
10,154
1,585 567
Net Loss 6M 2015 Derivatives Pre-term return of aircraft
atOrenair and Rossiya
Airlines
FA write off at Vladavia Forex Adjusted Net Income 6M2015
* Reserves on pre-term return of aircraft at Orenair and Rossiya
airline
** Mostly land and buildings
*** Reserves on pre-term return of aircraft at Orenair and
Rossiya airline and positive forex difference
**** Positive forex difference mostly related to PDP refund on
Boeing
* **
***
** ****
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Derivatives and Hedging Result Effect on Statement of Profit
or Loss and Statement of Comprehensive Income
RUBm 6M 2015
Statement of Profit or Loss
Financial income 7,183
Foreign exchange gain 5,404
Interest income on bank deposits 1,708
Other finance income 71
Financial cost (7,441)
Interest expenses (3,419)
Loss on change in fair value of derivatives (1,387)
Realised loss on derivatives (2,621)
Other finance costs (14)
Hedging result (8,848)
Realised loss on derivatives (7,740)
Ineffective portion of fuel hedging 1,595
Effect from finance lease liabilities hedging (2,703)
Other Comprehensive Profit
Profit on change in fair value of derivatives 6,211
Effect from finance lease liabilities hedging 4,135
P/L Other Comprehensive
Profit Instrument
Change in
Fair Value Ineffective
Portion Actual
Cost
Currency
options (962) - - -
Fuel options (425) 1,595 (10,361) 4,186
Swap - - - 2,025
Lease (2,703) 4,135
Total (1,387) 1,595 (13,064) 10,346
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1. Market Update
2. Aeroflot Group Overview
3. Operating Performance
4. Revenue and Yield Management
5. Fleet Overview
6. Financial Performance
7. Capital Structure and Liquidity
8. Appendix
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8,435 17,106 16,632 16,685
78,959
2015 2016 2017 2018 2019+
RUBm 31-Dec-2014 30-Jun-2015 Change
Borrowings 24,203 31,190 28.9%
Finance Lease Liabilities 149,278 137,817 (7.7)%
Pension Liabilities 659 709 7.7%
Customs Duties 169 - n/a
Total Debt 174,309 169,716 (2.6)%
Cash and Short Term
Investments 27,508 50,067 82.0%
Net Debt 146,800 119,649 (18.5)%
Leverage and Liquidity
• Total Debt decreased by 2.6% mainly due to revaluation of
finance lease obligations
• Cash position of RUB 50.1 billion and undrawn credit lines of
RUB 23.1 billion 1 Net debt does not include capitalised operating
lease expenses, based on annualized EBITDA 2 Not including
interest; future payments in dollars converted into roubles at
exchange rate of 55.524 RUB per USD
Debt Profile Net Debt / LTM EBITDA¹
Debt breakdown by currency Finance Lease Repayment Schedule
(RUBm)2
Borrowings Finance Lease
2.9
4.7
5.9
3.6
30-Jun-2014 30-Sep-2014 31-Dec-2014 30-Jun-2015
RUB 37%
USD 63%
RUB 0.01%
USD 99.99%
30-Jun-2014 30-Sep-2014 31-Dec-2014 30-Jun-2015
75,929 91,806 146,800 119,649
25,964 19,631 24,840 33,122
RUB m
Net Debt
EBITDA 1
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Operating Free Cash Flow
• Strong Operating and Free Cash Flow in 6M 2015
(RUBm)
36.8%
(3,296)
16,097
42,736
36,084
26,379
6,710
3,419
(6,247)
(405)
(5,404)
14,668
26,639
Profit BeforeIncome Tax
D&A InterestExpense
UnrealizedNet FX Loss
Other Adj.Before
WorkingCapital
Changes*
Cash FlowsFrom
OperatingActivitiesBefore
WorkingCapital
Changes
WorkingCapital
Changes andIncome Tax
Net CashFlows FromOperatingActivities
Net CapitalExpenditures
Net Pre-delivery
Payments forAircraft
Free CashFlow 6M 2015
Free CashFlow 6M 2014
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1. Market Update
2. Monthly Traffic Statistics
3. Operating Performance
4. Revenue and Yield Management
5. Fleet Overview
6. Financial Performance
7. Capital Structure and Liquidity
8. Appendix
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Aeroflot Airline and Aeroflot Group Operating Results
Indicator
Aeroflot airline Aeroflot Group
Unit 6M
2014
6M
2015 Change
6M
2014
6M
2015 Change
Passenger Traffic th PAX 10,962 11,981 9.3% 15,666 17,855
14.0%
International Routes th PAX 5,918 6,356 7.4% 7,948 7,558
(4.9%)
Domestic Routes th PAX 5,044 5,624 11.5% 7,718 10,297 33.4%
Passenger Turnover m pkm 31,171 34,166 9.6% 40,927 44,479
8.7%
International Routes m pkm 20,205 22,241 10.1% 25,787 25,019
(3.0%)
Domestic Routes m pkm 10,966 11,925 8.7% 15,141 19,460 28.5%
Passenger Capacity m ASK 40,749 44,419 9.0% 54,066 58,789
8.7%
International Routes m ASK 27,065 29,116 7.6% 34,560 33,007
(4.5%)
Domestic Routes m ASK 13,684 15,302 11.8% 19,507 25,782
32.2%
Seat Load Factor % 76.5% 76.9% 0.4 p.p. 75.7% 75.7% (0.0)
p.p.
International Routes % 74.7% 76.4% 1.7 p.p. 74.6% 75.8% 1.2
p.p.
Domestic Routes % 80.1% 77.9% (2.2) p.p. 77.6% 75.5% (2.1
p.p.)
Tonne-Kilometres m tkm 3,113 3,371 8.3% 4,009 4,320 7.8%
International Routes m tkm 2,003 2,186 9.2% 2,508 2,439
(2.7%)
Domestic Routes m tkm 1,111 1,185 6.7% 1,501 1,881 25.3%
Flight Hours hours 266,194 286,081 7.5% 383,431 411,986 7.4%
• Continued double-digit PAX growth on domestic market in 6M
2015 on the back of increasing capacities and strong domestic
demand
• Stronger performance of Aeroflot airline compared to Aeroflot
Group on international markets
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6M 2015 Traffic and Capacity Dynamics (Y-o-Y)
• Russian market is the star performer for the second year in
row, despite high base of H1 2014
• CIS region operating metrics showed material y-o-y
improvements due to the launch of new flights to the region in the
last twelve
months
• Performance of North and Central American market is affected
by network optimization and closure of commercially inefficient
flights (Toronto, Cancun, Punta Cana)
• PAX growth on European and Asian markets was supported by
expanded capacities on selected routes and softening
competitive
landscape as well as increased international transit via
Aeroflot hub in Sheremetyevo
• Middle Eastern market performance affected by capacity
additions across the region and softer demand on flights to
Turkey
Source: Data presented based on management accounting for
scheduled flights of Aeroflot Group (excluding charter flights)
Americas Russia CIS
Europe Middle East Asia
33.9%28.8%
32.7%
(2.2) p.p.
Passengerscarried
RPK ASK SLF
(6.5)% (6.6)%(10.0)%
2.9 p.p.
Passengerscarried
RPK ASK SLF
1.9 % 2.1 %
(1.3)%
2.5 p.p.
Passengerscarried
RPK ASK SLF
4.9 %
3.6 % 3.4 %
0.1 p.p.
Passengerscarried
RPK ASK SLF(2.2)%
5.5 %
8.6 %
(2.2) p.p.
Passengerscarried
RPK ASK SLF
19.9 % 21.0 %
14.7 %
4.1 p.p.
Passengerscarried
RPK ASK SLF
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Key Operating Data of Subsidiary Airlines
1 According to IFRS, before intercompany eliminations 2 Aeroflot
Group consolidated data according to IFRS
Rossiya Orenair Donavia Aurora Vladivostok
Air Pobeda Total
Passenger Traffic, 6M 2015 2,348 1,191 728 506 - 1,102 5,874
‘000 PAX 6M 2014 2,177 1,244 794 466 4.6 19 4,704
Y-o-Y 7.8% (4.2%) (8.3%) 8.7% - - 24.9%
Passenger Turnover, 6M 2015 4,391 2,431 967 836 - 1,688
10,313
m pkm 6M 2014 4,145 3,679 1,134 766 8.1 24 9,756
Y-o-Y 5.9% (33.9%) (14.7%) 9.1% - - 5.7%
Seat Load Factor, %
6M 2015 71.8% 69.1% 69.4% 66.5% - 81.0% 71.8%
6M 2014 72.4% 75.8% 69.1% 72.9% 56.4% 88.6% 73.3%
Y-o-Y (0.6 p.p.) (6.6 p.p.) 0.3 p.p. (6.4 p.p.) - - (1.5
p.p.)
Flight Hours, hours
6M 2015 57,216 23,795 14,204 15,746 - 14,946 125,907
6M 2014 54,810 32,483 16,602 12,969 122 251 117,237
Y-o-Y 4.4% (26.7%) (14.4%) 21.4% - - 7.4%
Revenue1, RUBm 6M 2015 19,765 7,840 5,678 6,319 - 3,329
176,4672
Net Income1, RUBm 6M 2015 159 (3,188) 483 (187) (251) (797)
(3,541)2
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Key Financial Data for Aeroflot Group
1 RPK = revenue passenger kilometre. 2 Yield = PAX Traffic
Revenue / RPK (PAX Traffic Revenue includes revenue from scheduled
and charter flights) . 3 EBITDAR = EBITDA + operating lease
expenses. 4 EBITDA = operating income + depreciation &
amortisation + customs duties. 5 Net Debt = borrowings + finance
lease liabilities + pension liabilities + custom duties – cash and
short-term investments.
RUBm, Unless
Otherwise Stated 6M 2014 6M 2015 Y-o-Y
Revenue 140,281 176,467 25.8 %
RPK1 (m pkm) 40,927 44,479 8.7 %
Yield2 (RUB/pkm) 2.88 3.29 14.0 %
EBITDAR3 16,656 33,252 99.6 %
Margin (%) 11.9% 18.8% 6.9p.p.
EBITDA4 5,029 13,311 >2x
Margin (%) 3.6% 7.5% 3.9p.p.
Operating Income / (loss) (1,384) 5,866 n/a
Margin (%) neg. margin 3.3% n/a
Net Income / (loss) (1,905) (3,541) n/a
Margin (%) neg. margin neg. margin n/a
Net Debt5 75,929 119,649 57.6 %
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Income Statement and Statement of Comprehensive Income
RUBm, Unless
Otherwise Stated 6M 2014 6M 2015 Change
Traffic revenue 121,796 150,604 23.7%
Other revenue 18,485 25,863 39.9%
Revenue 140,281 176,467 25.8%
Operating costs, excluding staff costs and depreciation and
amortisation (109,009) (139,166) 27.7%
Staff costs (24,304) (27,235) 12.1%
Depreciation and amortisation (5,586) (6,710) 20.1%
Other income and expenses, net (2,766) 2,510 -
Operating costs (141,665) (170,601) 20.4%
Operating profit/(loss) (1,384) 5,866 -
Finance income 2,615 7,183 174.7%
Finance costs (2,434) (7,441) 205.7%
Hedging result - (8,848)
Share of results of associates (2) (56) -
Loss before income tax (1,205) (3,296) 173.5%
Income tax expense (700) (245) (65.0%)
Loss for the period (1,905) (3,541) 85.9%
Other comprehensive profit/(loss) :
Items that may be reclassified subsequently to profit or
loss:
Translation from the functional currency to the presentation
currency 28 - -
Profit/(loss) on the change in fair value of derivative
financial instruments (233) 6,211 -
Effect from hedging revenue with currency liabilities - 4,135
-
Deferred tax related to the profit/(loss) on 65 (2,057) -
Other comprehensive profit/(loss) for the period (140) 8,289
-
TOTAL COMPREHENSIVE PROFIT/(LOSS) FOR THE PERIOD (2,045) 4,748
-
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RUBm, Unless
Otherwise Stated 31-Dec-14 30-Jun-15 Change
ASSETS
Current assets
Cash and cash equivalents 26,547 47,932 80.6%
Accounts receivable and prepayments 56,769 63,289 11.5%
Other current assets 8,897 13,227 48.7%
Total current assets 92,213 124,448 35.0%
Non-current assets
Prepayments for aircraft 29,241 28,524 (2.5%)
Property, plant and equipment 116,044 113,430 (2.3%)
Other non-current assets 40,220 37,735 (6.2%)
Total non-current assets 185,505 179,689 (3.1%)
TOTAL ASSETS 277,718 304,137 9.5%
LIABILITIES AND EQUITY
Current liabilities
Derivative financial instruments 26,312 24,343 (7.5%)
Accounts payable and accrued liabilities 48,952 59,434 21.4%
Unearned traffic revenue 22,469 39,844 77.3%
Finance lease liabilities 16,912 16,984 0.4%
Short-term loans and borrowings and current portion of long-term
loans and borrowings 17,343 25,999 49.9%
Other current assets 3,148 8,102 157.4%
Total current liabilities 135,136 174,706 29.3%
Non-current liabilities
Long-term loans and borrowings 6,860 5,192 (24.3%)
Finance lease liabilities 132,366 120,833 (8.7%)
Other non-current liabilities 16,861 12,169 (27.8%)
Total non-current liabilities 156,087 138,194 (11.5%)
TOTAL LIABILITIES 291,223 312,900 7.4%
Equity
Share capital 1,359 1,359 -
Hedge reserve (48,657) (40,368) (17.0%)
Retained earnings 45,584 42,164 (7.5%)
Other items (1,917) (1,917) -
Equity attributable to shareholders of the Company (3,631) 1,238
n/a
Non-controlling interest (9,874) (10,001) 1.3%
TOTAL EQUITY (13,505) (8,763) (35.1%)
TOTAL LIABILITIES AND EQUITY 277,718 304,137 9.5%
Condensed Balance Sheet
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Condensed Cash Flow Statement
Source: Company data
RUBm, Unless
Otherwise Stated 6M 2014 6M 2015 Change
Operating cash flows before working capital changes 7,030 16,097
129.0%
Increase in accounts receivable and prepayments (520) (3,442)
561.9%
Increase in expendable spare parts and inventories (447) (438)
(2.0%)
Increase in accounts payable and accrued liabilities 22,051
31,632 43.4%
Total operating cash flows after working capital changes 28,114
43,849 56.0%
Net cash flows from operating activities 26,603 42,736 60.6%
Net cash flows used in from investing activities (28) (7,155)
-
Net cash used in financing activities (8,632) (13,715) 58.9%
Net increase in cash and cash equivalents 18,043 21,385
18.5%
Cash and cash equivalents at the end of the period 36,703 47,932
30.6%
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This document has been prepared by PJSC “Aeroflot” (the
“Company”). By attending the meeting where the presentation is
made, or by reading the
presentation slides, you agree to the following.
This document does not constitute or form part of any
advertisement of securities, any offer or invitation to sell or
issue or any solicitation of any offer to
purchase or subscribe for, any securities of the Company in any
jurisdiction, nor shall it or any part of it nor the fact of its
presentation or distribution form
the basis of, or be relied on in connection with, any contract
or investment decision.
No reliance may be placed for any purpose whatsoever on the
information contained in this document or on assumptions made as to
its completeness.
No representation or warranty, express or implied, is given by
the Company, its subsidiaries or any of their respective advisers,
officers, employees or
agents, as to the accuracy of the information or opinions or for
any loss howsoever arising, directly or indirectly, from any use of
this presentation or its
contents.
This document may include forward-looking statements. These
forward-looking statements include matters that are not historical
facts or statements
regarding the Company’s intentions, beliefs or current
expectations concerning, among other things, the Company’s results
of operations, financial
condition, liquidity, prospects, growth, strategies, and the
market in which the Company operates. By their nature,
forwarding-looking statements involve
risks and uncertainties because they relate to events and depend
on circumstances that may or may not occur in the future. The
Company cautions you
that forward-looking statements are not guarantees of future
performance and that the Company’s actual results of operations,
financial condition and
liquidity and the development of the market in which the Company
operates may differ materially from those made in or suggested by
the forward-
looking statements contained in this document. The Company does
not undertake any obligation to review or confirm expectations or
estimates or to
update any forward-looking statements to reflect events that
occur or circumstances that arise after the date of this
presentation.
Disclaimer
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Address: 119002, Russia, Moscow, Arbat St. 10
E-mail: [email protected]
Website: www.aeroflot.ru
Investor Relations Contacts
Andrey Napolnov, CFA
Head of Investor Relations
Aeroflot Group
Tel: +7 (495) 258-06-86
Mob: +7 (903) 247-78-08
E-mail: [email protected]
mailto:[email protected]://www.aeroflot.ru/mailto:[email protected]
