I N V E S TO R P R E S E N TAT I O N - Aeroflot...Q1 2017 Q1 2018 25.2 27.6 18.3 22.6 43.4 50.1 2016 2017 56.4 62.6 46.4 61.1 102.8 123.7 2016 2017 Competitive Dynamics Source: TCH,

A E R O F L O T G R O U PI N V E S T O R P R E S E N T AT I O N

June 2018

2

This document has been prepared by PJSC “Aeroflot” (the “Company”). By attending the meeting where the presentation is made, or by reading the

presentation slides, you agree to the following.

This document does not constitute or form part of any advertisement of securities, any offer or invitation to sell or issue or any solicitation of any offer to

purchase or subscribe for, any securities of the Company in any jurisdiction, nor shall it or any part of it nor the fact of its presentation or distribution form

the basis of, or be relied on in connection with, any contract or investment decision.

No reliance may be placed for any purpose whatsoever on the information contained in this document or on assumptions made as to its completeness.

No representation or warranty, express or implied, is given by the Company, its subsidiaries or any of their respective advisers, officers, employees or

agents, as to the accuracy of the information or opinions or for any loss howsoever arising, directly or indirectly, from any use of this presentation or its

contents.

This document may include forward-looking statements. These forward-looking statements include matters that are not historical facts or statements

regarding the Company’s intentions, beliefs or current expectations concerning, among other things, the Company’s results of operations, financial

condition, liquidity, prospects, growth, strategies, and the market in which the Company operates. By their nature, forwarding-looking statements involve

risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. The Company cautions you

that forward-looking statements are not guarantees of future performance and that the Company’s actual results of operations, financial condition and

liquidity and the development of the market in which the Company operates may differ materially from those made in or suggested by the forward-

looking statements contained in this document. The Company does not undertake any obligation to review or confirm expectations or estimates or to

update any forward-looking statements to reflect events that occur or circumstances that arise after the date of this presentation.

Disclaimer

3

36.6 bn

34.5 bn10.3 mln

PAX

+ 6.6 %

ASK

+ 6.1 %

PASSENGER LOAD

FACTOR¹

+ 0.4 p.p. + 8.5 %

103 bn112 bn

Revenue (RUB)

Q1 2017 Q1 2018

¹ Immaterial deviations throughout the presentation are explained by rounding

78.5%78.0%

• In Q1 2018, Aeroflot Group has continued operational development via expanding capacity onthe back of opportunities provided by the market.

• Capacity growth allowed Aeroflot to increase number of passengers transported as well asboost revenues while keeping PLF in the positive territory.

Aeroflot Group Q1 2018 Highlights

11.0 mln

4

Aeroflot Group Business Seasonality

• Russian air transportation market shows highly pronounced seasonality which influences

quarterly results of Aeroflot Group business.

Source: Company data

Million PAX

Passenger Traffic Passenger Revenue (Sch. + Charter) Blended yield (Sch. + Charter)

Billion RUB RUB/RPK

10.3

12.7

15.4

11.8

11.0

Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018

Passenger traffic, million PAX

87.2

113.6

149.7

107.9

96.9

Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018

Passenger revenue, billion RUB

3.24

3.50

3.74

3.50

3.37

Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018

Passenger yield (blended), RUB/RPK

Share of each quarter in 12M 2017 results

Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018

21% 25% 31% 24% n/m

Share of each quarter in 12M 2017 results

Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018

19% 25% 33% 24% n/m

Q1 2018 yield deviation

Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018

4% (4)% (10)% (4)% -

5

1. Market Update

2. Aeroflot Group Overview

3. Aeroflot Group Operating Performance

4. Network and Schedule Overview

5. Fleet Overview

6. Financial Performance

7. Capital Structure and Liquidity

8. Appendix

6

0.17

2.28

0.65 0.43

3.83

2.97

1.41

0.81

UK USA Turkey Russia

39.2 46.3

52.6 56.4

62.6

2013 2014 2015 2016 2017

110.7 103.1 97.9 101.4 102.3

2013 2014 2015 2016 2017

… from airlines on domestic routesRailways facing increasing competition…

Notes: (1) Total local and foreign carriers’ traffic

Sources: FAAT, Aeroflot estimates

Russian Air Transportation Market: Room for Growth

Total CAGR 4.5%

International – (1.3)% | Domestic – 12.4%

Despite fast growth of the recent years,Russian airline industry still haspromising growth prospects comparedto European & US markets

ChangeFY16-17

31.7%

11.0%

(5.1)%(6.9)%

3.6%

10.9%

10.8%

17.9%

RZD long-haul rail traffic (mln PAX) Domestic air traffic (mln PAX)

(2) Airline PAX per capita per year, as of 2017

Sources: FAAT, Aeroflot estimates

0.17

Domestic PAX per capita

2.28

0.65 0.43

x.xx

(5.0)%

13.6%

20.3%

• Russian market is well positioned for long-term growth on the back of still low penetration, additional potential from

ongoing structural changes and increasing propensity to travel by air as well as advantageous geographical

location.

Russian Total Passenger Traffic Growth, mln PAX(1) Trips per Capita (2)

0.8%

7.3%

Long-distance rail routes low over 10mln PAX in the recent 5 years andover 30 mln PAX over a decade

Domestic air traffic growth at a muchhigher pace than other means oftransportation

39.2 46.3 52.6 56.4 62.6

64.4 65.5 54.7 46.461.1

103.7111.8 107.3 102.8

123.7

0.0

50.0

100.0

150.0

2013 2014 2015 2016 2017Domestic Routes International Routes

7

11.0

3.2

1.6 1.8

3.44.6

AeroflotGroup

S7 Group Ural Airlines UTair Group ForeignCarriers

Others

5.7 6.1

4.6 4.9

10.3 11.0

Q1 2017 Q1 2018

25.2 27.6

18.322.6

43.450.1

2016 2017

56.4 62.6

46.461.1

102.8

123.7

2016 2017

Competitive Dynamics

Source: TCH, Company estimates

Note: Incl. foreign carriers’ traffic.

Passenger Traffic: Market vs Aeroflot Group Change in Airlines’ Passenger Numbers

mln PAX, Q1 2018

Q1 2017

Market Share (PAX)

Q1 2018

+0.7

+0.2+0.2

+1.0

Increase in PAX million

Source: TCH, Rosaviatsia, Company estimates / 1 UTair Group includes UTair, Utair-Cargo and Turuhan

Foreign Airlines Other Russian Airlines

-2.5 p.p.

6.6%

6.5%

6.8%

10.8%

15.3%

23.9% Total Market 18.1%

37.1% International 22.0%

12.0% Domestic 14.7%

Russian Air Transportation Market (million PAX)

inc. PAX of Russian and Foreign Carriers and int. transit PAX

Aeroflot Group (million PAX)

10.9%

31.7%

9.7%

23.3%

Market Dynamics Net of Aeroflot Group

• Aeroflot Group continued to deliver growth on further recovering market increasing PAX by 6.6% with acceleration on both

domestic and international routes.

20.3%

“Clean” Market Share of Aeroflot Group (Net of Intl.-Intl. Transit Traffic)

42.9% Aeroflot Group 40.3%

1

+0.3

+0.5

12.9%

15.4%

12.2 13.5

10.4 12.0

22.625.6

Q1 2017 Q1 2018

International Routes

Domestic Routes

45.5%

12.9%

6.8%

5.9%

13.0%

15.9%

43.0%

12.4%6.9%

6.5%

13.4%

17.9%

8

25.3 %

42.5 %

36.1 %

20.7 %

15.3 %13.4% 12.2%

7.4%

12.7%10.8%

18.6% 25.7% 20.5% 16.4% 12.9%

Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018

International Domestic

Passenger Traffic (Russian and Foreign Carriers) Capacity (Russian and Foreign Carriers)

Continuing Market Recovery

Change in PAX traffic y-o-y, % Change in ASK y-o-y, %

Capacity (Russian Carriers) Passenger Load Factor (Russian Carriers)

• Beginning of 2018 is marked by further market recovery on the back of higher demand in both international and domestic segments.

Change in PLF y-o-y, percentage pointsChange in ASK y-o-y, %

Source: SRS for foreign carriers, Rosaviatsia for domestic carriers, Company calculations

ASK is calculated based on published RPK and PLF dataSource: TCH, Company calculations

Source: Rosaviatsia, Company calculations

ASK is calculated based on published RPK and PLF data

Total market

Source: Rosaviatsia, Company calculations

Quarterly PLF is calculated based on published RPK and PLF data

(2.5)%

13.0%

21.8%

14.6%

16.9%

19.6%21.0%

17.2%

11.9%

16.4%

Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018Foreign carriers Russian carriers

24.7%

33.4%

28.8%

17.6%16.4%

14.0%

9.3%

5.9% 6.2%

16.4%

Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018International Domestic

5.0

3.8

0.9 0.8 0.3

(0.3)

1.6

0.3

3.7

(3.5)

Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018

International Domestic

9

1. Market Update




5. Fleet Overview



8. Appendix

10

67.3%

Aeroflot Group Multi-Brand Strategy

1 PAX contribution as of 3M 2018. Absolute number of passengers in million in green circle

• Flagship carrier

• Premium product (4 Stars)

• High income and middle class

• Hub and spoke model

• Regional and leisure product

Focus on domestic flights

• Selected international routes,

mostly out of VKO airport in

Moscow

• Charter operations

Premium

Regional and Charter

Regional / Far-East

Low Cost

Business Model Focus Airport PAX Contribution1Brand PAX Growth

Q1 2018

7.0 7.4

7.4

+5.4%

2.0 1.9

1.0

1.4

(6.7)%

+42.2%

0.30 0.33

+7.8%

3M 2017 3M 2018

3M 2017 3M 2018

3M 2017 3M 2018

3M 2017 3M 2018

17.0%

12.8%

3.0%

1.9

1.4

0.3

• Moscow

(Sheremetyevo)

• Saint-Petersburg

(Pulkovo)

• Moscow (Vnukovo)

• Vladivostok,

Khabarovsk,

Yuzhno-Sakhalinsk

• Moscow (Vnukovo)• Short and mid-haul flights

• Mostly domestic segment,

selected international

routes

• Point-to-point carriage

• The Far East airline flying on

short- and mid-haul direct

international and domestic

routes

• Flights to remote cities (local

flights)

• Simplified multi-brand product offering to capture customers in every market segment: from premium to low-cost.

• Aeroflot and Pobeda – key engines of the Group – both increased traffic by approximately 0.4 million PAX

11

Overview of the Initiative

• Mid-single digit decline in PAX traffic in Q1 2018 due to efforts to maximize operational and financial efficiency in

low season.

• Plans to catch up with the annual goals during high season.

Rossiya Airline: Q1 Highlights

PLF: international and domestic (%)Passengers: international and domestic (mln PAX)

Mix of Scheduled and Charter Operations

2,0

0,5

1,4

1,9

0,6

1,3

Total International Domestic

3M 2017 3M 2018

76,8%

90,2%

68,1%

82,2%90,9%

74,6%

Total International Domestic

3M 2017 3M 2018

(6.7%)

10.5%

(13.3%)

5.3 p.p.0.7 p.p.

6.5 p.p.

Scheduled76%

Charter24%

Scheduled74%

Charter26%

PAX, Q1 2017 PAX, Q1 2018

Launched direct flight from St.Petersburg to London (Gatwick)

A-la-carte menu for own flights in VKO

Plans to move operations to SVO in 2019

Intelligent capacity management to increase efficiency (domestic routes)

Continued growth in international segment backed by leisure demand

12

Network

• Operating from Vnukovo airport (3rd Moscow airport by PAX)

• Network comprising 62 routes (38 unique for the Group)

• Additional expansion to international destinations (10 countries)

Fleet

• 18 Boeing 737-800 NG (31.03.2018)

• Plans for 6 more aircraft to be delivered in 2018

• Single class cabin

• 189 seats per plane

Key features

and

achievements in

Q1 2018

• 1.4 million PAX in Q1 2018 (+42.2% y-o-y)• Record high Q1 PLF of 93.1% (+1.5 p.p. y-o-y)• International PPK is 25% of total Pobeda traffic• Active development of intra-region flights, and international flights from the regions

2022 Goals• 45 aircraft• c. 15-16 mln PAX

Improving Load Factor

Overview of Pobeda

• Pobeda, the only Russian LCC, is a timely value proposition to cost conscious passengers.

Pobeda Airline: Three Full Years of Successful Operations

Growing Passenger Flows

thousand PAX

Pobeda’s Network (Summer 2018)

Routes from Moscow Routes from Rostov

Gelenzhik

Rostov

Nazran

Makhachkala

Astrakhan

Volgograd

Kazan

Perm

Ufa

Chelyabinsk

EkaterinburgTyumen

Surgut

Novosibirsk

Bergamo

Bratislava

Cologne

Memmingen

Girona

Samara

Cheboksary

LarnacaPaphos

Tivat

Nab. Chelny

Saint Petersburg

Nalchik

Moscow

Vladikavkaz

Routes from St.-Petersburg

PLF, %

Tbilisi

Route from Makhachkala

Routes from Ekaterinburg

Krasnoyarsk

Gyumri

Anapa

Sochi

Alanya

Pisa

Routes from Sochi

Route from Krasnoyarsk

Baden-Baden

Istanbul

Ulan-Ude,

Irkutsk

345.5 303.1 337.1

985.7

479.7 429.1 492.9

1,401.7

Jan Feb Mar Q12017 2018

38.8% 41.6% 46.2%

42.2%

92.3%

91.0%91.5% 91.6%

94.2%

93.0%

92.2%

93.1%

Jan Feb Mar Q12017 2018

+1.9 p.p.

+2.0 p.p.

+0.7 p.p.

+1.5 p.p.

Karlovy Vary

Leipzig

Reus

Venice

Kaliningrad

Batumi

13

40

80

Sheremetyevo development planEvolution of key operating indicators (max. theoretical capacity)

Source: Sheremetyevo press-center, aviation explorer, public sourcesNote:1 Actual passenger traffic of 2017 2 According to IATA Methodology

New Terminal B Highlights New infrastructure objects launched in 2018

Terminal B Interterminal tunnel Express train

20262017

2018

2019

2021

2024

Terminal C-2

Terminal CTerminal B

Warehouse

Cargo

Terminals

Runway-3

Runway-2

Runway-1

Fuel-filling

Complex

Terminal D

Terminal FInterterminal TunnelTerminal E

mm

pax

Annual pax

capacity

Flights per

hour2

55

90

flig

hts

Infrastructure Expansion to Support Future Growth

• Aeroflot has started transferring domestic flights to the new Terminal B starting from May. During the first stage, expected to

finish on 1 June 2018, the Company will transfer 46 return flights to the new terminal.

Capacity – 20 mln PAX (4,200 PAX per hour)

Size – 110 thd sqm

New technologies implemented in the new terminal

Connected to terminal E via interteminal tunnels

1

14

1. Market Update




5. Fleet Overview



8. Appendix

15• Strong operating results in Q1 2018: growing PAX flows and PLF on the back of balanced capacity expansion.

Operating Data – Q1 2018

Indicator Unit

Aeroflot airline Aeroflot Group

Q1 2017 Q1 2018 Y-o-Y Q1 2017 Q1 2018 Y-o-Y

Passenger Traffic th PAX 7,015 7,394 5.4% 10,302 10,985 6.6%

International Routes th PAX 3,754 3,899 3.9% 4,578 4,888 6.8%

Domestic Routes th PAX 3,262 3,495 7.1% 5,724 6,097 6.5%

Passenger Turnover mln pkm 20,059 20,975 4.6% 26,934 28,743 6.7%

International Routes mln pkm 13,760 14,325 4.1% 16,531 17,568 6.3%

Domestic Routes mln pkm 6,299 6,651 5.6% 10,403 11,175 7.4%

Passenger Capacity mln ASK 25,805 27,419 6.3% 34,510 36,624 6.1%

International Routes mln ASK 17,723 18,912 6.7% 20,847 22,504 7.9%

Domestic Routes mln ASK 8,082 8,507 5.3% 13,663 14,120 3.3%

Passenger Load Factor % 77.7% 76.5% (1.2) p.p. 78.0% 78.5% 0.4 p.p.

International Routes % 77.6% 75.7% (1.9) p.p. 79.3% 78.1% (1.2) p.p.

Domestic Routes % 77.9% 78.2% 0.3 p.p. 76.1% 79.1% 3.0 p.p.

Tonne-Kilometres mln tkm 2,031 2,112 4.0% 2,683 2,857 6.5%

International Routes mln tkm 1,399 1,451 3.8% 1,650 1,752 6.2%

Domestic Routes mln tkm 633 661 4.4% 1,032 1,105 7.0%

Revenue Flights flights 55,507 60,232 8.5% 82,350 88,538 7.5%

International Routes flights 28,029 30,259 8.0% 33,765 36,869 9.2%

Domestic Routes flights 27,478 29,973 9.1% 48,585 51,669 6.3%

Flight Hours hours 162,023 174,577 7.7% 224,959 241,954 7.6%

16

Q1 2018 Operating Data by Region (Scheduled Routes)

• Strong operating performance on the scheduled routes was partially offset by selective adjustments

in network due to internal and external reasons

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

Americas Russia CIS

Europe Middle East Asia

Performance of North and Central Americanmarket was supported by addition of 3rdfrequency to NY and increased ASK to otherdestinations, which weighted on PLF.

Russian market is continuing to show consistentgrowth in 2018 with strong PLF performance onthe back of efficient capacity management.

Group KPIs in CIS came under pressure as aresult of subsidiaries’ operating programoptimization while Aeroflot airline showed steadygrowth on all key routes including Kazakhstan.

European market performance benefited fromlaunch of additional frequencies to keydestinations and from new destinations openingduring the last twelve months, putting slightpressure on PLF.

Operating performance of the region significantlyaffected by increased frequencies to Istanbul,Antalya and Dubai backed by strong demand tothe region

Passenger traffic on key regional destinationsstable or trending towards growth (China), highernumber of frequencies to Male supportive foroverall performance of the region.

10.6 %8.6 %

15.4 %

(4.8) p.p.

Passengerscarried

RPK ASK PLF

8.0 %9.4 %

4.8 %3.3 p.p.

Passengerscarried

RPK ASK PLF

(2.5)%

(6.4)%

(4.9)%

(1.2) p.p.

Passengerscarried

RPK ASK PLF

8.6 %9.8 %

12.6 %

(1.8) p.p.

Passengerscarried

RPK ASK PLF

3.1 %2.5 %

1.7 %

0.6 p.p.

Passengerscarried

RPK ASK PLF

3.5 %3.2 %

3.5 %

(0.3) p.p.

Passengerscarried

RPK ASK PLF

17

1. Market Update




5. Fleet Overview



8. Appendix

18

12.610.2

15.213.1

8.2

13.111.0

15.513.8

8.3

Scheduled International Domestic Medium-haul Long-haul

Q1 2017 Q1 2018

Aeroflot routes

Rossiya routes

Aurora routes

Average Scheduled Flight Frequency per Route (Aeroflot Group ex-Pobeda)

• Moderate growth of destinations, focus on increase in frequencies on scheduled routes.• Aeroflot Group operates flights to 169 unique destinations in 53 countries (in 2018 summer schedule, incl. Russia

and new destinations to be launched in the upcoming month).

Aeroflot Group Network

(Q1 2018, y-o-y)

Note: 1 Scheduled flights of Aeroflot Group (excluding Pobeda LCC)

4.4%7.5%

2.0%4.7%

1.4%

# of Flights Evolution by Region1

Increase in Group frequencies by 4.4% was predominantly supported by expansion of the number of frequencies ininternational segment (+7.5%) and in the sector of medium-haul routes (+4.7%).

Los Angeles

MOSCOW

Malaga

Alicante

Amsterdam

Brussels

Stockholm

AthensAntalya

Barcelona

Belgrade

Bologna

BudapestParis

Copenhagen

DresdenDusseldorf

Rome

Frankfurt

Geneva

Hannover

Hamburg

Helsinki

Heraklion

Istanbul

Larnaca

London

Lyon

Madrid

Munich

MilanNice

Oslo

Bucharest

Prague

Riga

Thessaloniki

SofiaSplit

Stuttgart

Berlin

Tbilisi

Tenerife

Tivat

Tallinn

Venice

Vienna

Valencia

Kaunas

Warsaw

Zagreb

Zurich

Lisbon

Havana

Washington

New York

Miami

Male

Phuket

Ho Chi Minh City

Geographic Network

MOSCOW

Anapa

Abakan

Adler

Arkhangelsk

Astrakhan

Barnaul

Chelyabinsk

Belgorod

Magadan

Gelenzhdik

Khanty Mansiysk

Irkutsk

Kemerovo

Kaliningrad

Khabarovsk

Krasnoyarsk

Krasnodar

SamaraKazan

Saint Petersburg

Murmansk

Magnitogorsk

Mineral Waters

NizhnekamskNizhny Novgorod

Nizhnevartovsk

Novokuznetsk

New Urengoy

Novosibirsk

Perm

P. Kamchatsky

Orenburg

Rostov

Saratov

SyktyvkarSurgut

Simferopol

Salekhard

Stavropol

EkaterinburgTyumen

TomskUfa

Yu. Sakhalinsk

Volgograd

Voronezh

Vladivostok

Yakutsk

Aktobe

Almaty

Shymkent

Yerevan

Bishkek

Atyrau

Baku

KaragandaChisinau

KostanayMinsk

Aktau

SamarkandTashkent

Astana

Beirut

Dubai

Teheran

Tel Aviv

Bangkok

HanoiHong Kong

Guangzhou

Delhi Shanghai

Tokyo

Beijing

Seoul

Ulan Bator

Sochi

Frankfurt

Dalian

Harbin

Busan

Antalya

BarcelonaBurgas

Paris

Dusseldorf

Rome

Hamburg

Varna

Larnaca

Munich

MilanNice

Prague

Rimini

Berlin

TivatIstanbul

Vienna

Makhachkala

Orly

Omsk

Minsk

Chisinau

4.7 %

13.5 %

4.4 %

15.7 %

3.4 %

7.2 %

2.9 %

Total

Middle East

CIS

North and CentralAmerica

Asia

Europe

Russia

19

• Aeroflot continued to increase frequencies both on the routes with already high capacity deployed as well as

underserved routes.

• Starting from summer 2018 we are launching flights to 6 new destinations in Russia, Kazakhstan, Italy,

Bulgaria and Egypt.

Network Plans – Summer 2018

Increasing frequencies on

domestic routes (examples)

New destinations to be launched from

Summer 2018

1 July

Naples (Italy)

7 flights per week

1 July

Verona (Italy)

7 flights per week

2 July

Burgas (Bulgaria)

7 flights per week

15 July

Kyzylorda (Kazakhstan)

4 flights per week

11 April

Cairo (Egypt)

3 flights per week

1 May

Saransk (Russia)

14 flights per week

1

2

3

4

5

6

56

42

35

38

35

7

7

7

7

7

7

4

7

7

7

7

Yekaterinburg

Rostov

N.Novgorod

Kaliningrad

Ufa

Khanty-Mansiysk

Magnitogorsk

Novy Urengoy

35

28

28

14

14

7

7

3

7

7

7

14

7

7

7

4

Prague

Rome

Milan

Istanbul

Antalya

Dubai

Bucharest

Lyon

Increasing frequencies on

international routes (examples)

Weekly frequency in summer schedule 2017

Addition in weekly frequencies starting from summer schedule 201825 March

St.Pete – London (LGW)

7 flights per week7

20

Average weekly frequency per route – Aeroflot airline

Increase in International – International Traffic

Aeroflot Airline Domestic and International Transit

Considerable share of transit of Aeroflot airline in Sheremetyevo

4.5%

5.4%

Growth

Q1 2018

2.4%

… Results into a Flexible Approach to Transit Flows

• Increasing flight frequency improves connectivity and supports Aeroflot’s traffic growth in Sheremetyevo airport.

• Advantageous geographical positions and Group’s efforts support traffic growth on key European and Asian

destinations.

Growing Connectivity of Aeroflot Airline’s Flights1 ...

Total Aeroflot airline int. – int. transit traffic, million PAX

Pickup in point-to-point demand combined with expanding capacitiesresulting in growing international transfer volumes

12.4 12.5 13.1 12.713.3

22.923.1

24.223.0

23.6

16.1 16.217.0

16.317.0

16.0x 19.1x 21.2x 19.6x 21.3x

2015 2016 2017 Q1 2017 Q1 2018

International Domestic Combined

14.0% 13.1% 13.6% 14.2% 14.7%

16.7% 16.9% 17.5% 16.6% 15.2%

13.5% 12.1% 11.8% 11.6% 10.2%

44.2%42.1% 42.9% 42.3%

40.1%

2015 2016 2017 Q1 2017 Q1 2018Domestic - DomesticInternational - Domestic / Domestic - InternationalInternational - International

3.6 3.74.4

1.0 1.1

2015 2016 2017 Q1 2017 Q1 2018

10.4%

… Backed by Convenient Location of Aeroflot Hub

Source: Company data, IMF, Eurostat, RITA, Russian State Statistics Service, Rosaviatsia.1 Data for Aeroflot airline’s own flights; Aeroflot adopted new frequency per route and connectivity ratio calculation methodology and previous periods were recalculated retrospectively

Connectivity ratio

From/To Paris London Vienna Stockholm Rome

TokyoVia Moscow 15:00 15:05 13:45 13:15 14:55

Via Dubai 18:30 18:55 17:15 17:45 17:30

ShanghaiVia Moscow 14:05 14:10 12:50 12:20 14:00

Via Dubai 17:25 17:50 16:10 16:40 16:25

Hong KongVia Moscow 15:00 14:40 13:20 12:50 14:30

Via Dubai 18:30 17:10 15:30 16:00 15:45

Moscow

Shortest

geographical

distance

21

Operational initiatives, including extra staff, English

speaking personnel in call centre and host cities,

increased stock of replacement components etc

Support for Russian football fans (5 RUB fares)

Charter flights for national football teams

Additional capacity on routes with strong demand

Direct flights between host cities

High frequencies to all host cities (scheduled flights)

Aeroflot and FIFA World Cup 2018 in Russia

Scheduled Routes to World Cup Locations

- routes per weekRossiya routesAeroflot routes

Volgograd(833k from Moscow)(43k from St. Pete)

Saint Petersburg(4.5mm from Moscow)

Kaliningrad(1.2mm from Moscow)(375k from St. Pete)

Moscow(4.5mm from St.Pete)

Saransk

Sochi(3.6mm from Moscow)

(515k from St. Pete)

Samara(1.3mm from Moscow)(216k from St. Pete)

Kazan(1.3mm from Moscow)(142k from St. Pete)

Ekaterinburg(1.9mm from Moscow)(340k from St. Pete)

NizhnyNovgorod

(530k from Moscow)(33k from St. Pete)

sourced by:

• Aeroflot Group is well positioned to leverage opportunities provided by the World Cup and will actively participate in

passenger transportation, including dedicated direct and charter flights.

• We will also invest in our operations to ensure best in-class service and reliable transportation options for all guests of the

Championship as well provide for affordable transportation for Russian football fans.

70

27

23

35

49

13

49

10

14

42

28

13

63

7

49

77

42

Aeroflot Efforts

1

3

4

5

2

6

140

58

from Moscow:

from Moscow:

from Moscow:

from Moscow:

from St. Pete:

from St. Pete:

from St. Pete:

from St. Pete:

from St. Pete:

from St. Pete:

from St. Pete:

X – weekly # of flights in 2017 summer schedule

(XXmm from …) - 2017A PAX (based on traffic flows on the leg, not a city-pair market)

*

Note: Pobeda also operates services to some host cities, including intra-regional flights. For information on Pobeda’s flights please refer to the respective section of the presentation

Rostov-on-Don(1.6mm from Moscow)(262k from St. Pete)

14

22

1. Market Update




5. Fleet Overview



8. Appendix

23

1 Excluding An-24 and An-148 not operated by the airlines of the Group2 Excludes planes out of operation

Aeroflot Group Fleet Breakdown

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

Breakdown by Company 2Breakdown by Aircraft 2 Breakdown by Ownership Type 2

Narrow-body

(medium-haul)67%

Narrow-body

(regional) 17%

Wide-body16%

Aeroflot69%

Rossiya19%

Aurora7%

Pobeda5%

Operating86%

Finance12%

Owned2%

Aircraft TypeOperated by Lease type

OwnedTotal as of Total as of Change vs.

Aeroflot Subsidiaries Finance Operating 31-Mar-18 31-Dec-17 31-Dec-17

Wide-body 38 15 18 35 - 53 52 1

Airbus A330 22 - 8 14 - 22 22 -

Boeing 777 16 6 10 12 - 22 21 1

Boeing 747 - 9 - 9 - 9 9 -

Narrow-body (medium-haul) 152 75 19 208 - 227 222 5

Airbus A319 - 36 9 27 - 36 36 -

Airbus A320 76 5 - 81 - 81 80 1

Airbus A321 38 - 10 28 - 38 38 -

Boeing 737 38 34 - 72 - 72 68 4

Narrow-body (regional) 42 14 - 50 6 56 51 5

DHC 8 - 11 - 5 6 11 11 -

DHC 6 - 3 - 3 - 3 3 -

SSJ 100 42 - - 42 - 42 37 5

Total fleet1 232 104 37 293 6 336 325 11

24

Fleet Expansion Strategy

• Aeroflot Group continues to intelligently manage capacity additions and develop its fleet taking into account market

trends and opportunities.

331

409

2017 2018E 2019E 2020E 2021E 2022E

Aeroflot Group Fleet as at Year-end2

Number of aircraft

Delivery/Phase-out Schedule1

+ 11 aircraft + 27 aircraftNet additions (1)

Type of Q1 2018 (Actual)Current

fleet(1)

Q2-Q4 2018

aircraftDelivery Phase

out

Delivery Phase

out

Wide-body (long-haul) 1 - 53 5 -

A-330 - - 22 - -

B-777 1 - 22 5 -

B-747 - - 9 - -

Narrow-body (medium-haul) 10 (5) 227 26 (14)

A-319 - - 36 - (2)

A-320 3 (2) 81 8 (4)

A-321 3 (3) 38 2 (7)

B-737 4 - 72 16 (1)

Narrow-body (regional) 5 - 56 10 -

SSJ-100 5 - 42 8 -

DHC-8 - - 11 - -

DHC-6 - - 3 2 -

TOTAL 16 (5) 336 41 (14)

1 As of 31.03.2018, not including aircraft leased or subleased to other operator (1 An-24 and 5 An-148 ). Phase-out plans for Q2-Q4 2018 include aircraft in finance lease that will be phased out according to the existing plan.

2 According to existing strategy. Not including aircraft leased or subleased to other operator.

325

25

1. Market Update




5. Fleet Overview



8. Appendix

26

RUB mln

(where applicable)Q1 2017 Q1 2018 Change

Passenger Traffic (mln PAX) 10,302 10,985 6.6%

Revenue 103,125 111,942 8.5%

Traffic Revenue 87,205 96,896 11.1%

EBITDAR1 13,742 10,767 (21.6)%

EBITDAR1 margin 13.3% 9.6% (3.7) p.p.

EBITDA (1,136) (7,732) 6.8x

Financial Highlights: Q1 2018

• Financial results of Q1 2018 are explained by seasonality pattern of the Russian aviation market

coupled with macroeconomic factors – fuel and exchange rate dynamics.

• Cost pressure were partially offset by increasing yield that helped us to increase revenues ahead

of passenger traffic and passenger turnover

1 EBITDAR = EBITDA + operating lease expenses.

27

103,125

8,772 920 400 (1,274) 111,942

Q1 2017 ScheduledPassenger

Flights

CharterPassenger

Flights

Cargo OtherRevenue

Q1 2018

103,125 5,333

2,837 722 (75) 111,942

Q1 2017 Volume Currency Pricing Other Q1 2018

Revenue Growth Decomposition

• Positive contribution of all volume and support from FX were the main factors influencing revenue.

• Primary driver of revenue growth was expansion of scheduled passenger flights across all segments, notably in

Russia, Europe and Asia

Revenue by Key Factors

RUB mln

8.5% 8.5%

Revenue by Business Segments

RUB mln

5.2% 2.8% 0.7%+ + 8.5% 0.9% 0.4% (1.2)%+ + +

Growth in operating metrics:RPK + 6.7%PAX + 6.6%

Appreciation ofRUB in Q1 2018y-o-y by c3% vs.USD,depreciation ofRUB in Q1 2018y-o-y by c11%vs. EUR

Growth across geographies:Russian revenue + 11.1%International revenue +10.4%

Cargo volumes + 9.6%

Mainly agreements with airlines driven by appreciating RUB vs. USD

Charter RPK up by c6% y-o-y

+ (0.1)%

28

3.05

3.49

3.31

3.09

3.67

3.43

Domestic International Total

2.30

2.72

2.55

2.44

2.80

2.65


Aeroflot Group Scheduled Flights Revenue Units

• RUB dynamics and changing mix of operations at subsidiaries’ level due to rapid expansion of LCC affected

RUB yields in Q1 2018.

Note: Data presented based on management accounting figures, scheduled flights revenue is used for calculations.

% Y-o-Y increase 2017 2018

Q1 Yield (PAX Revenue / RPK)

RUB

Q1 RASK (PAX Revenue / ASK)

RUB

1.6%

3.6%

6.0%

4.3%

5.1%3.1%

29

(4.5)%

(0.4)%

1.8%

0.4%

(0.0)%

1.1% 1.1%1.8%

4.1%

2.1%

4.1%3.7%

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

(8.9)%

(7.8)%

(6.3)%(6.1)%

(4.8)%

(2.3)%(2.4)%

(1.3)%

0.0%0.4%

4.4%

7.9%


(11.4)%(11.9)%(10.6)%

(9.5)%(7.3)%

(4.2)% (4.2)%(2.6)% (1.8)%

(0.1)%

4.5%

9.8%


Aeroflot Airline International Yield

Aeroflot Airline Domestic Yield

Aeroflot Airline Yield Dynamics (Monthly)

RUB/RPK, Change y-o-y in %


Aeroflot Airline Total Yield

• Aeroflot airline yields showed improvement on a monthly basis throughout 2017 (y-o-y) and in 2018 yield dynamics

entered positive zone in both international and domestic segments

• In Q1 2018 international segment was the main driver of Aeroflot growth: towards the end of the quarter in March

2018 yield dynamics reached +9.8% y-o-y.


Source: Company calculations, data presented based on management accounting figures for Aeroflot airline standalone; immaterial deviations vs. historical data may occur due to

adjustments in Revenue Management System (RMS)

2017 2018 2017 2018

2017 2018

30

Operating Expense

(RUB mln If not stated otherwise)Q1 2017 Q1 2018

Change

y-o-y

Change

ex. FX & NRE

% of Total OpEx

(Q1 2018)

Fuel 27,427 34,042 24.1% 27.2% 27.6%

Opex (ex. Fuel) 80,635 89,495 11.0% 12.0% 72.4%

Aircraft, traffic and passenger

servicing21,154 21,908 3.6% 2.2% 17.7%

Staff 18,588 21,404 15.2% 15.3% 17.3%

Operating lease 14,878 18,499 24.3% 28.9% 15.0%

Maintenance 8,179 8,469 3.6% 6.0% 6.9%

SG&A1 6,171 6,160 (0.2)% 0.2% 5.0%

D&A and customs duties 3,800 3,864 1.7% 1.7% 3.1%

Other expenses2 7,865 9,191 16.9% 19.0% 7.4%

Total Opex 108,061 123,538 14.3% 15.8% 100.0%

Operating Costs

• In Q1 2018 operating costs were significantly impacted by expansion of operations, fuel price increase and growing fleet of

the Group. FX dynamics also affected key operating expenses lines.

1 Includes sales and marketing expenses and administration and general expenses.2 Other expenses include Global Distribution Systems cost, reserves accrual, catering expenses, banks’ commissions.

31

3.13

0.05

0.13 (0.01) (0.01)0.07 (0.00) (0.01) 0.02

3.37

0.04

3.42

3.13

Reported CASKQ1 2017

Staff Fuel Maintenance Aircraft, Trafficand Passenger

Servicing

Operating Lease D&A and CD* Admin & Sales &Marketing

Other Costs Reported CASKQ1 2018

FX CASK Q1 2018ex. FX

Reported CASKQ1 2017

Group Unit Costs

• Cost per ASK increased by 7.7% from RUB 3.13 in Q1 2017 to RUB 3.37 in Q1 2018 on the back of fuel, staff and

operating lease expenses pressure.

* Customs duties

Operating Expense per ASK (CASK), RUB Q1 2017 Q1 2018 Change

Fuel 0.79 0.93 17.0%

Opex (ex. Fuel): 2.34 2.44 4.6%

Aircraft, Traffic and Passenger Servicing 0.61 0.60 (2.4)%

Staff 0.54 0.58 8.5%

Operating Lease 0.43 0.51 17.2%

Maintenance 0.24 0.23 (2.4)%

SG&A 0.18 0.17 (5.9)%

D&A and Customs Duties 0.11 0.11 (4.2)%

Other Expenses 0.23 0.25 10.1%

Total Opex 3.13 3.37 7.7%

9.2%1.3%7.7%

32

2018

56.6 56.8 57.1 USD/RUB

69.1 65.7 66.9 Brent (USD)

39 641

33 887

28 000

32 000

36 000

40 000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Q1(WA)

2018 2017

• Efficient fuel procurement: 1-year supply contracts in

airports across Russia

• Majority of fuel purchased in Russia and almost all

fuel at international airports supplied at formula-

linked price - Jet fuel priceIntl = NW Europe (FOB

Rotterdam) price x Discount x FX rate2 x 1.183 +

Storage/Fuelling/Supply fees (if any of these applicable)

• Increasing average fuel price.

Weighted average fuel purchase price of $697/ton

(RUB 39,641/ton) in Q1 2018 vs $576/ton

(RUB 33,887/ton) in Q1 2017 (17.0% y-o-y increase in

RUB terms)

Fuel Cost Management

• Aeroflot is achieving efficiency gain in fuel costs as new aircraft are put into operation

• Oil price and RUB fluctuations led to further upward pressure on jet fuel price in Q1 2018

Flight Hours

7.6%

Fuel Consumption per ASK Fuel Consumption per RTK

Aeroflot Airline Jet Fuel Price

(thousand hours) (gr/ASK) (gr/RTK)

(RUB per tonne of jet fuel)

1

Source: Bloomberg, Company data1 Weighted average price for Q1

Comments

2 USD/RUB exchange rate as per the Central Bank of Russia3 Assuming 18% VAT rate

(1.2)% (1.5)%

225

242

Q1 2017 Q1 2018

22,9 22,6

Q1 2017 Q1 2018

294,8 290,2

Q1 2017 Q1 2018

33

Headcount Overview

• Improvement in labour productivity has resulted in increase of key performance indicators in Q1 2018.

• Aeroflot Group headcount increased by 7.5% vs. March 31, 2017.

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

9.0%

(million RUB per employee, annualized to 31.03.2018) (passengers per employee, annualized to 31.03.2018)

Aeroflot Group Headcount by Category

6.0%

1 Aeroflot Group headcount table excludes Aeroflot Aviation School headcount amounting to 181 employees as at 31.12.2017 and 194 employees as at 31.03.2018.

31-Dec-2017 31-Mar-2018 %

Cabin crew 11,259 11,661 3.6 %

Airport services 7,034 7,064 0.4 %

Technical maintenance and repair 4,702 4,914 4.5 %

Flight crew 3,846 3,969 3.2 %

Tickets and services sales, advertising 1,903 1,903 0.0 %

Other airline personnel (inc. airlines’ head office) 5,430 5,539 2.0 %

Other non-airline subsidiaries’ personnel 4,696 4,719 0.5 %

Total1 38,870 39,769 2.3 %

Flight crew10.0%

Cabin crew29.3%

Technical maintenance and repair

12.4%

Tickets and services sales, advertising

4.8%

Airport services17.8%

Other airline personnel13.9%

Other non-airline personnel

11.9%

13.5

14.3

31.03.2017 (LTM) 31.03.2018 (LTM)

1,379

1,503

31.03.2017 (LTM) 31.03.2018 (LTM)

34

(1,136)

5,333 722 (75)

2,837

1,647 (7,469)

(2,838)

(455)(4,297)

(494) (10)(1,497)

(7,732)

Reported

EBITDA Q1

2017

Volume Pricing Other FX benefit on

revenue

FX benefit on

costs

Fuel* Staff* Aircraft, Traffic

and PAX*

Operating

Leases*

Maintenance* Admin & Sales

& Marketing*

Other OPEX* Reported

EBITDA Q1

2018

(RUB mln)

EBITDA Evolution

* Excluding currency impact

• Positive FX impact was observed both on revenue and operating costs due to multidirectional dynamics of

RUB vs. USD and EUR.

• Key drivers of EBITDA adjustment along with the growth in size and scale of operations were fuel and

operating lease costs increase.

Net volume and price effect

∑=(17,059) RUB mln

Total effect on revenue

∑=8,817 RUB mln

Total effect on costs

∑=(15,412) RUB mln

Net volume and price effect

∑=5,980 RUB mlnNet FX effect

∑=4,484 RUB mln

Volume effect(1,641) RUB mln

Price effect(5,382) RUB mln

35

Pobeda Financial Results

Increasing PAX Traffic RASK dynamics

Increasing ASK CASK dynamics

1.89 1.94

Q1 2017 Q1 2018

1.0

1.4

Q1 2017 Q1 2018

Million passengers RUB

Growing Revenues of LCC Segment

1.7

2.6

Q1 2017 Q1 2018

2.28 2.28

Q1 2017 Q1 2018

PAX up by 42.2% in Q1 2018 RASK up by 2.7% in Q1 2018

ASK up by 50.9% in Q1 2018 CASK down by 0.3% in Q1 2018

RUB mln Q1 2017 Q1 2018Change

(Q1 18/17)

Revenue 3,277 5,079 55.0%

EBITDAR1 137 233 69.7%

EBITDAR margin 4.2% 4.6% 0.4 p.p.

EBITDA (685) (882) 28.8%

Net loss (474) (736) 55.1%

Note: based on managerial accounts transformed under IFRS standards1 Calculation based on Total Revenue of the Company

• Pobeda has demonstrated solid results backed by strong demand, active expansion of the fleet and

efficient cost management which allowed LCC to secure flattish CASK while growing RASK in Q1 2018.

Billion ASK RUB

1

36

1. Market Update




5. Fleet Overview



8. Appendix

37

RUB mln 31-Dec-2017 31-Mar-2018 Change

Borrowings 3,181 3,530 11.0%

Finance Lease Liabilities 100,689 88,257 (12.3)%

Pension Liabilities 922 931 1.0%

Total Debt 104,792 92,718 (11.5)%

Cash and Short Term

Investments54,909 63,248 15.2%

Net Debt 49,883 29,470 (40.9)%

Leverage and Liquidity

• Net Debt decreased by 40.6% mainly due to decrease in finance lease obligations as well as accelerated growth in

cash position.

• Cash position of RUB 63.1 billion and undrawn credit lines of RUB 99 billion

1 31-Dec-2017 exchange rate - 57.60 RUB per USD , 31-Mar-2018 exchange rate - 57.26 RUB per USD 3 Not including interest; future payments in dollars converted into roubles at exchange rate of 57.26 RUB per USD2 Net debt does not include capitalised operating lease expenses; based on annualized EBITDA 4 From 01-Jan-2018 interest on bank deposits is included in Cash and Short Term Investments (175.6 million RUB

as at 31-Mar-2018)

Debt Profile1 Net Debt / LTM EBITDA2

Debt breakdown by currency Finance Lease Repayment Schedule (RUB billion)3

Borrowings Finance Lease

30-Jun-2017 30-Sep-2017 31-Dec-2017 31-Mar-2018

42,618 48,925 49,883 29,470

63,373 54,147 56,015 49,420

RUB mln

Net Debt 2

EBITDA 2

1.1

0.7

0.9 0.9

0.6

31-Mar-2017 30-Jun-2017 30-Sep-2017 31-Dec-2017 31-Mar-2018

11.0 13.0 12.8 12.9

38.6

2018 2019 2020 2021 2022+89%

11%

RUB USD

2%

98%

4

38

19,371

24,318

786

(13,727)

3,458

1,717 (836)

5,146 (4,242)

14,533

10,291

(1,824)

4,953

6,178 (1,013)

Profit BeforeIncome Tax

D&A InterestExpense

UnrealizedNet FX Gain

Other Adj.Before

WorkingCapital

Changes

Cash FlowsFrom

OperatingActivitiesBefore

WorkingCapital

Changes

WorkingCapital

Changesand Income

Tax

Net CashFlows FromOperatingActivities

CapitalExpenditures

ProceedsFrom Sale of

PPE

DepositPlacementand Return

Net Pre-delivery

Payments forAircraft

Net LeasingDeposits for

a/c inOperatingLease and

Other

Free CashFlow Q1

2018

Free CashFlow Q1

2017

Operating and Free Cash Flows

• Strong Operating and Free Cash Flow generation in Q1 2018 on the back of growing business volumes and solid

operating performance despite lowest quarter of the year.

(RUB mln)

Billion RUB Q1 2018

Other adjustments before working capital changes, incl. 5.1

Change in provisions1 3.5

Effect from revenue hedging (finance lease hedge accounting) 1.3

Loss on fixed assets disposal 0.3

Other 0.1

(20.3)%

1 Change in provisions line mainly consists of provision for regular repairs and maintenance

Billion RUB Q1 2018

Working capital changes and income tax, incl. 14.5

Change in accounts receivable and prepayments (6.6)

Change in accounts payable and accrued liabilities 21.2

Change in tax and restricted cash (0.1)

39

1. Market Update




5. Fleet Overview



8. Appendix

40

Key Operating Data of Subsidiary Airlines

Indicator UnitRossiya Airline Pobeda Airline Aurora Airline

Q1 2018 Y-o-Y Q1 2018 Y-o-Y Q1 2018 Y-o-Y

Passenger Traffic th PAX 1,862 (6.7)% 1,402 42.2% 327 7.8%

International Routes th PAX 611 10.5% 298 53.5% 80 2.7%

Domestic Routes th PAX 1,252 (13.3)% 1,104 39.4% 247 9.5%

Passenger Turnover mln pkm 4,856 0.3% 2,442 53.4% 470 6.5%

International Routes mln pkm 2,508 11.3% 620 54.7% 115 (0.9)%

Domestic Routes mln pkm 2,349 (9.2)% 1,822 52.9% 354 9.1%

Passenger Capacity mln ASK 5,909 (6.2)% 2,622 50.9% 674 1.1%

International Routes mln ASK 2,759 10.4% 665 44.5% 168 2.6%

Domestic Routes mln ASK 3,150 (17.1)% 1,956 53.2% 507 0.6%

Passenger Load Factor % 82.2% 5.3 p.p. 93.1% 1.5 p.p. 69.7% 3.5 p.p.

International Routes % 90.9% 0.7 p.p. 93.2% 6.2 p.p. 68.8% (2.4) p.p.

Domestic Routes % 74.6% 6.5 p.p. 93.1% (0.2) p.p. 70.0% 5.5 p.p.

Flight Hours hours 38,846 (5.3)% 18,738 49.2% 9,792 4.8%

41

3.05

3.493.31

3.09

3.67

3.43


2.30

2.72

2.552.44

2.80

2.65


3.20

3.523.403.35

3.723.58


2.36

2.73

2.592.56

2.812.72


Q1 RASK ex. Pobeda (PAX Revenue / ASK)Q1 Yield ex. Pobeda (PAX Revenue / RPK)

Aeroflot Group Scheduled Flights Revenue Units

• RUB dynamics and changing mix of operations at subsidiaries’ level affected RUB yields in Q1 2018.

Note: Data presented based on management accounting figures, scheduled flights revenue is used for calculations.

RUB

% Y-o-Y increase

RUB

2017 2018

Q1 Yield (PAX Revenue / RPK)

RUB

Q1 RASK (PAX Revenue / ASK)

RUB

1.6%

3.6%

6.0%

4.3%

5.1%3.1%

4.6%

5.2%

8.7%

5.2%

5.5%3.0%

42

Q1 RASK (Scheduled + Charter PAX Revenue / ASK)Q1 Yield (Scheduled + Charter PAX Revenue / RPK)

Aeroflot Group Flights Revenue Units

• RUB dynamics and changing mix of operations at subsidiaries’ level affected RUB yields in Q1 2018.

Note: Data presented based on management accounting figures, scheduled and charter flights revenue is used for calculations

RUB

% Y-o-Y increase

RUB

2017 2018

Q1 Yield (Scheduled PAX Revenue / RPK)

RUB

Q1 RASK (Scheduled PAX Revenue / ASK)

RUB

3.05

3.493.31

3.09

3.67

3.43


2.30

2.72

2.552.44

2.80

2.65


3.05

3.363.24

3.11

3.543.37


2.1%4.1%

5.3%

2.32

2.662.53

2.46

2.762.65


6.1%

4.7%

3.7%

1.6%

3.6%

6.0%

4.3%

5.1%3.1%

43

140 150 165189

224 232

5.2

4.14.4 4.2 4.1 4,0

2013 2014 2015 2016 2017 3/31/2018

Aircraft Average Age

232 251 247289

325 336

7.77.0

6.4 6.5 6.2 6,1

2013 2014 2015 2016 2017 3/31/2018

Aircraft Average Age

• Aeroflot operates the youngest fleet in the industry among airlines with active fleet of 100+ aircraft

• Aeroflot achieved significant progress in fleet renewal both for Aeroflot airline and for the Group

Aeroflot Group Fleet in Operation 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 FlightGlobal data (as of March 2018) excluding planes out of operation

Aeroflot Group Fleet Evolution

4.0

4.9

4.9

5.3

5.3

5.5

5.5

5.5

5.6

5.7

5.8

5.9

6.1

6.1

6.2

6.5

6.5

7.5

9.6

10.3

10.4

11.4

12.9

13.5

13.7

14.5

16.7

Hainan Airlines

Shandong Airlines

Spirit Airlines

Xiamen Airlines

Azul

China Eastern Airlines

Sichuan Airlines

Emirates Airline

Lion Air

Garuda Indonesia

Saudia

Etihad Airways

IndiGo

Qatar Airways

Air China

Shenzhen Airlines

Singapore Airlines

Japan Airlines

American Airlines

Qantas

Lufthansa

Air France

Jazz

British Airways

United Airlines

Delta Air Lines

44

Region Q1 2017 Q1 2018 Y-o-YQ1 2018, % of

sch. revenue

Russia 30,562 33,959 11.1% 37.3%

Europe 22,362 25,352 13.4% 27.8%

Asia 16,087 17,465 8.6% 19.2%

CIS 4,058 4,464 10.0% 4.9%

North and Central

America4,997 5,165 3.4% 5.7%

Middle East 4,269 4,702 10.1% 5.2%

Total 82,336 91,107 10.7% 100.0%

Traffic Revenue Analysis

1 Data presented based on management accounting2 Data presented based on management accounting for Aeroflot airline and routes of subsidiary airlines under commercial management of Aeroflot

Q1 2018

Q1 20182

Traffic Revenue Breakdown by Type

Scheduled Traffic Revenue by POS

Revenue from Scheduled Passengers (RUB mln)1

• In Q1 2018 revenue from scheduled passengers grew by 10.7% mainly driven by revenue growth on Russian,

European and Asian markets.

Total Passenger Revenue (Scheduled + Charter, RUB mln)

Segment Q1 2017 Q1 2018 Y-o-YQ1 2018, % of

revenue

Domestic 31,715 34,779 9.7% 35.9%

International 55,489 62,117 11.9% 64.1%

Total 87,205 96,896 11.1% 100.0%

Sheduled Passenger Flights

90.5%

Charter Passenger Flights 5.8%

Cargo 3.8%

Sales abroad30.3%

Online33.8%

Call center and ow n branches

3.3%

Sales in Russia32.6%

45

Reported and Adjusted Net Loss Analysis

• One-off effects had limited influence on Aeroflot Group Q1 2018 financial results.

Q1 Adjusted Net Loss Build-Up (RUB mln)

(11,543) (11,605)

1,052 (251)(863)

Reported Net Loss Q1 2018 Discounting of receipt of leasedeposits

Change in the fair value ofinvestments in equity

securities

FOREX on PDP Adjusted Net Loss Q1 2018

46

(5,339)

(11,543)

10,091 (1,274)

(15,476)

(253) (732)98 272

1,061 9

Reported NetLoss Q1 2017

Traffic Revenue Other Revenue OperatingExpenses

Finance Income Finance Costs Hedging Result Revaluation ofEquity

Investments andother

Taxation Other Reported NetLoss Q1 2018

Net Income Evolution

(RUB mln)

• Increase in revenue generated by growing volumes was offset by a less favorable cost environment

which resulted in adjustment of the bottom line.

Pressure from

higher fuel prices,

staff costs and

operating lease

expenses in Q1

2018.

47

Statement of Comprehensive Income

RUB mln, unless otherwise stated 2013 2014 2015 2016 2017 Q1 2017 Q1 2018

Traffic revenue 257,546 277,354 359,205 433,966 474,916 90,583 100,674

Other revenue 33,410 42,417 55,968 61,914 58,018 12,542 11,268

Revenue 290,956 319,771 415,173 495,880 532,934 103,125 111,942

Operating costs (271,161) (308,503) (371,066) (432,626) (492,523) (108,061) (123,538)

Operating profit / (loss) 19,795 11,268 44,107 63,254 40,411 (4,936) (11,596)

Sale and impairment of investments, net - - (9,159) (2,935) (144) (57) 215

Finance income 2,686 2,471 15,811 19,802 7,127 1,971 1,718

Finance costs (8,814) (28,399) (28,556) (9,443) (8,225) (2,038) (2,769)

Hedging result - (1,723) (23,746) (12,310) (5,613) (1,391) (1,293)

Share of results of associates 37 31 (17) 12 170 (11) (2)

Result from disposal of subsidiaries - - - (5,099) - - -

Profit / (loss) before income tax 13,704 (16,352) (1,560) 53,281 33,726 (6,462) (13,727)

Income tax (6,369) (794) (4,934) (14,455) (10,666) 1,123 2,184

Profit / (loss) for the period 7,335 (17,146) (6,494) 38,826 23,060 (5,339) (11,543)

EBITDAR 51,026 48,673 103,118 137,567 121,808 (13,742) 10,767

EBITDA 31,849 24,839 58,703 78,004 56,015 (1,136) (7,732)

Traffic revenue growth 16.4% 7.7% 29.5% 20.8% 9.4% - 8,5%

Revenue growth 15.0% 9.9% 29.8% 19.4% 7.5% - 11,1%

Operating profit margin 6.8% 3.5% 10.6% 12.8% 7.6% - -

EBITDAR margin 17.5% 15.2% 24.8% 27.7% 22.9% - -

EBITDA margin 10.9% 7.8% 14.1% 15.7% 10.5% - -

48

Assets (RUB mln) 31.12.2013 31.12.2014 31.12.2015 31.12.2016 31.12.2017 31.03.2018

Cash and cash equivalents 18,660 26,547 30,693 31,476 45,978 59,105

Short-term financial investments 272 961 5,917 6,319 8,931 4,143

Accounts receivable and prepayments 55,691 56,769 76,317 78,172 92,932 96,220

Expendable spare parts and inventories 4,927 6,516 7,447 10,040 12,811 12,806

Property, plant and equipment 88,777 116,044 104,494 104,897 97,932 87,959

Prepayments for aircraft 12,318 29,241 35,291 27,830 13,089 9,679

Deferred tax assets 2,174 18,540 21,632 12,252 10,396 11,374

Goodwill 6,660 6,660 6,660 6,660 6,660 6,660

Other assets 19,705 16,440 26,743 21,661 34,601 47,419

Total Assets 209,184 277,718 315,194 299,307 323,330 335,365

Liabilities (RUB mln)

Accounts payable and accrued liabilities 36,249 48,952 54,751 49,868 67,953 71,323

Unearned traffic revenue 16,334 22,469 28,691 39,044 43,695 65,473

Short-term loans and borrowings 5,029 17,343 54,085 9,309 - 175

Long-term loans and borrowings 8,377 6,860 14,375 11,058 3,181 3,355

Finance lease liabilities 63,348 132,366 145,020 107,143 84,674 73,923

Provisions for liabilities 1,655 4,845 6,917 10,791 16,949 19,503

Other liabilities 23,712 58,388 47,475 31,325 39,579 43,245

Total Liabilities 154,704 291,223 351,314 258,538 256,031 276,997

Hedge reserve (383) (48,657) (64,720) (34,187) (25,159) (23,650)

Retained earnings 61,122 45,584 39,755 77,198 81,476 71,393

Total Equity 54,480 (13,505) (36,120) 40,769 67,299 58,368

Total Liabilities and Equity 209,184 277,718 315,194 299,307 323,330 335,365

Condensed Statement of Financial Position

49

Statement of Cash Flows

RUB mln, unless otherwise stated 2013 2014 2015 2016 2017 Q1 2017 Q1 2018

Operating cash flows before working capital changes 32,944 31,603 64,269 81,994 65,330 215 (4,242)

Change in accounts receivable and prepayments (3,014) 4,658 (2,251) (6,191) (27,816) (5,359) (6,556)

Change in expendable spare parts and inventories (1,019) (1,831) (1,216) (2,809) (2,672) (321) 7

Change in accounts payable and accrued liabilities 4,345 8,452 14,705 13,387 24,964 26,763 21,162

Operating cash flows after working capital changes 33,256 42,882 75,507 86,381 59,806 21,298 10,371

Income tax paid (4,260) (6,863) (6,041) (13,943) (13,019) (514) (102)

Net cash flows from operating activities 28,945 35,977 69,664 73,647 47,432 20,798 10,291

Cash flows from investing activities:

Purchases of PPE and intangible assets (4,410) (6,160) (9,196) (10,222) (7,681) (961) (1,824)

Prepayments for aircraft (7,154) (21,361) (22,708) (18,806) (7,931) (85) (1,883)

Return of prepayments for aircraft 7,783 9,620 7,828 29,362 26,274 - 8,061

Net cash flows from/(used in) investing activities (3,599) (18,492) (38,770) 10,331 14,369 3,520 9,080

Cash flows from financing activities:

Repayment of loans and borrowings (14,579) (9,870) (36,267) (72,991) (17,417) (1,573) -

Repayment of finance lease principal (9,795) (15,629) (19,455) (27,024) (15,513) (1,995) (5,356)

Net cash used in financing activities (21,782) (14,673) (28,075) 80,495 46,821 (4,607) (6,142)

Net increase in cash and cash equivalents 3,590 7,887 4,146 783 14,502 19,283 13,127

Cash and cash equivalents at the end of the period 18,660 26,547 30,693 31,476 45,978 50,759 59,105

50

Board of Directors

Executive Board

Personnel and Remuneration

Committee

(6 members)

General Meeting of Shareholders

Board of Directors

Audit Committee

(4 members)

Strategy Committee

(10 members)

Corporate Governance

NameAudit

Committee

Personnel and

Remuneration

Committee

Strategy

Committee

Mikhail Poluboyarinov Chairman of the Board of Directors

Vitaly Saveliev

Lars Erik Anders

BergstromMember Member

Sergey Chemezov

Alexey Germanovich Member Chairman Member

Igor Kamenskoy Member Member Chairman

Dmitry Peskov Member Member

Dmitry Saprykin Member

Vasily Sidorov Chairman Member Member

Yuri Slyusar Member

Mikhail Voevodin Member Member

Board of Directors

The Board of Directors is currently composed of 11

members. The Board’s composition is well balanced

from members’ background perspective, number of

independent, non-executive and executive directors

Incorporated in Russia, PJSC Aeroflot is subject to

Russian corporate governance regulations and follows

Russian Corporate Governance Code

Independent director according to the Russian Corporate Governance Code

51

Aeroflot Group Structure

Airlines Ancillary Companies

PJSC Aeroflot(1)

JSC Rossiya Airlines 75%-1 sh.

LLC Pobeda Airlines 100%

JSC Orenair (2) 100%

JSC Donavia (2) 100%

JSC Aurora Airlines 51%

CJSC Aeromar

In-flight catering51%

LLC Aeroflot-Finance

Financial services100%

JSC Sherotel

Hotel services100%

Aeroflot Aviation School

Education services100%

Notes:

(1) The Group as of March 31, 2018; Aeroflot Group consolidates all entities: PJSC Aeroflot and all subsidiaries.

(2) Non-operating entities

• Over the past years the Group structure was refined with a focus on aviation assets and disposal of non-core assets, which is

in compliance with the Group's strategy to streamline the core business

• PJSC Aeroflot also owns 45.0% of JSC AeroMASh-AB (Aviation security), 2.43% of JSC Sheremetyevo International Airport

(base airport), 3.85% of PJSC Transport Clearing House (mutual settlements between agencies and airlines) and 49.0% of LLC

Transnautic Aero (cargo sales, in liquidation)

A-Technics

Maintenance 100%

52

Address: 119002, Russia, Moscow, Arbat St. 10

E-mail: [email protected]

Website: www.aeroflot.ru

Investor Relations Contacts

mailto:[email protected]

http://www.ir.aeroflot.ru/

Documents

I N V E S TO R P R E S E N TAT I O N - Aeroflot...Q1 2017 Q1 2018 25.2 27.6 18.3 22.6 43.4 50.1 2016 2017 56.4 62.6 46.4 61.1 102.8 123.7 2016 2017 Competitive Dynamics Source: TCH,