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A E R O F L O T G R O U P
Q2 & 6M 2021 IFRS RESULTS
31 August 2021
Speakers:
Andrey Chikhanchin – Deputy CEO for Commerce and Finance
Andrey Panov – Deputy CEO for Strategy, Service and Marketing
Ivan Batanov – Head of Revenue Management
2
This document has been prepared by PJSC “Aeroflot” (the “Company”). By attending the meeting where the presentation is made, or by reading the
presentation slides, you agree to the following.
This document does not constitute or form part of any advertisement of securities, any offer or invitation to sell or issue or any solicitation of any offer to
purchase or subscribe for, any securities of the Company in any jurisdiction, nor shall it or any part of it nor the fact of its presentation or distribution form
the basis of, or be relied on in connection with, any contract or investment decision.
No reliance may be placed for any purpose whatsoever on the information contained in this document or on assumptions made as to its completeness.
No representation or warranty, express or implied, is given by the Company, its subsidiaries or any of their respective advisers, officers, employees or
agents, as to the accuracy of the information or opinions or for any loss howsoever arising, directly or indirectly, from any use of this presentation or its
contents.
This document may include forward-looking statements. These forward-looking statements include matters that are not historical facts or statements
regarding the Company’s intentions, beliefs or current expectations concerning, among other things, the Company’s results of operations, financial
condition, liquidity, prospects, growth, strategies, and the market in which the Company operates. By their nature, forwarding-looking statements involve
risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. The Company cautions you
that forward-looking statements are not guarantees of future performance and that the Company’s actual results of operations, financial condition and
liquidity and the development of the market in which the Company operates may differ materially from those made in or suggested by the forward-
looking statements contained in this document. The Company does not undertake any obligation to review or confirm expectations or estimates or to
update any forward-looking statements to reflect events that occur or circumstances that arise after the date of this presentation.
Disclaimer
3
Aeroflot Group Q2 2021 Highlights
Note: immaterial deviations throughout the presentation are explained by rounding.1 Excluding Aurora Airlines traffic in Q2 20192 Total scheduled yield of the Group, management accounting.3 Net cash flows from operating activities.4 Cash and Short-term Investments.
Strong domestic traffic1 Yield growth2 Improving CFO3 Cash reserves4
Million PAX RUB/RPK Billion RUB
In Q2 2021 the Group continued to further recover operations and normalize yields dynamicssignificantly improving cash flow.
Q2 2019 Q2 2021
+17.9% +12.6%
3.95
4.45
Q2 2019 Q2 2021
Billion RUB
113.2
93.8
31-Dec-20 30-Jun-21
+7.8x
5.2
40.9
Q2 2020 Q2 2021
9.6 mln
8.2 mln
4
1. Market Update and Operating Results
2. Network and Schedule Overview
3. Fleet Overview
4. Financial Performance
5. Appendix
5
18.4
4.5
23.3
19.7
0.1
4.9
38.1
4.6
28.2
Q2 2019 Q2 2020 Q2 2021
In Q2 2021 demand on domestic market significantly recovered and exceeded pre-pandemic levels, international traffic
continues to be impacted by national COVID-related restrictions.
Overview of the Russian Market
Passenger Traffic: Market vs Aeroflot Group
Russian Air Transportation Market (million PAX)incl. PAX of Russian and Foreign Carriers and intl. transit PAX
Aeroflot Group (million PAX) 1
Key Market Players, 6M 2021
Market Shares
Foreign Carriers Others
6M 20201 6M 2021
Source: TCH, Aeroflot Group. Figures include foreign carriers’ traffic. Note 1: all numbers for Aeroflot Group for 2019 and 2020 exclude Aurora Airlines for proper comparison.
+6.1x
(25.9)%
Million PAX
33.2 19.1
38.2
33.0
11.6
7.6
66.2
30.7
45.9
6M 2019 6M 2020 6M 2021
International Routes
Domestic Routes
49.3%
(30.7)%
8.2 1.6
9.6
6.8
0.1
1.5
15.0
1.7
11.2
Q2 2019 Q2 2020 Q2 2021
15.0 8.1
16.1
12.5
4.5
2.5
27.5
12.6
18.6
6M 2019 6M 2020 6M 2021
+6.8x
(25.5)% 47.7%
(32.4)%
18.6
8.1
3.8 3.11.8
10.6
AeroflotGroup
S7 Group Ural Airlines UTair Group ForeignCarriers
Others
40.9%
15.6%6.7%
6.3%
9.4%
19.9%
40.5%
17.7%8.2%
6.7%
3.9%
23.0%
6
(16)%
6% 7%
(7)%
(23)%(15)%
(0)% (2)%5%
12%
28%
37%
(99)%
(88)%
(78)% (77)%
(85)% (85)% (84)% (81)%(74)% (73)%
(77)%
(71)%
(52)%
(35)%(32)%
(39)%
(48)%(43)%
(34)% (33)%(27)%
(23)% (20)%(12)%
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Domestic International Total
Source: TCH, Federal Air Transport Agency, Aeroflot Group calculationsSource: TCH, Federal Air Transport Agency, Aeroflot Group calculations
Further Market Recovery in 2021
Total Russian Civil Aviation Passenger Traffic Total Russian Civil Aviation Passenger Traffic Dynamics
Million PAX
Domestic segment, which historically contributed around half of the total Russian market, posted rapid recovery and
accelerated traffic growth in 6M 2021.
% change vs. 2019
2020 2021 2020 2021
8.67.5
5.6
4.1 4.6 5.0 4.45.6
6.2
7.6
9.5
0.8
1.3
1.2
0.50.5
0.60.6
0.91.0
1.2
1.7
6.8
9.38.8
6.8
4.75.1
5.55.0
6.5
7.2
8.8
11.1
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Domestic International
7
Murmansk
+47%(0.6 mln PAX)
Domestic markets RPK PLF (pp) PLF World share
World -22% -7% 79% 54.3%
Russia 39% -3 pp 81% 3.4%
China -11% -9 pp 76% 19.9%
Brazil -31% -1 pp 81% 1.6%
Japan -68% -29 pp 42% 1.5%
USA -15% -4 pp 86% 16.6%
Australia -41% -13 pp 65% 0.7%
Russian Domestic Market: Global Champion by Recovery Pace Accelerating Growth
Russian domestic market started to grow actively from March 2021 yielding Russia a first place in global recovery despite third wave concerns (based on IATA statistics).
Source: IATA, FAVT, data for Russian market is taken from FAVT, world market share is based on FY2020
Kaliningrad
+2.0x(1.6 mln PAX)
Sochi
+82%(5.0 mln PAX)
Krasnodar
+17%(2.0 mln PAX)
Source: based on FAVT and airport data
Anapa
+2.1x(1.0 mln PAX)
-16%
6% 7%
-7%-23% -15%
0% -2%
5% 12%28% 37%
Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21
Russian domestic PAX started to grow from March 2021…
Source: TCH
… keeping Russia a global champion in recovery …
Domestic PAX, all vs. 2019 data
June 2021 vs. June 2019, %
… with PAX growth in various regions
Selected Russian Airport Statistics (PAX), June 2021 vs. June2019, %; million PAX served in 6M 2021 in brackets
Ufa
+12%(1.6 mln PAX)
Min. Vody
+33%(1.4 mln PAX)
Krasnoyarsk
+20%(1.0 mln PAX)
Nizhny Novgorod
+20%(0.5 mln PAX)
Saratov
+2.0x(0.4 mln PAX)
Makhachkala
+39%(0.9 mln PAX)
Kirov
+54%(0.1 mln PAX)
Ulyanovsk
+66%(0.2 mln PAX)
Gorno-Altaysk
+4.0x(0.1 mln PAX)
Petropavlovsk-
Kamchatsky
+6%(0.3 mln PAX)
8
Underlining strength of the domestic market a number of key Russian airports ranked among busiest in Europe in June 2021 with Aeroflot’s Sheremetyevo hub leading the ranks.
Million PAX, change in % vs. June 2019
Source: The ANKER Report European Airport Traffic Statistics (EATS) Database, FAVT1 Based on FAVT data.
Key Russian Airports Among The Busiest in Europe
Top 15 Airports in Europe in June 2021
2.9
2.8
2.4
2.2
1.9
1.8
1.7
1.7
1.7
1.7
1.7
1.4
1.4
1.3
1.2
0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5
Moscow (SVO)
Istanbul (IST)
Moscow (DME)
Istanbul (SAW)
St. Petersburg
Frankfurt
Antalya
Madrid
Moscow (VKO)
Paris (CDG)
Amsterdam
Palma de Mallorca
Barcelona
Sochi
Paris (ORY)
Moscow (SVO)
Moscow (DME)
St. Petersburg
Moscow (VKO)
Sochi
Key Highlights
(-36%)
(-53%)
(-9%)
(-28%)
(-7%)
(-73%)
(-64%)
(-69%)
(-28%)
(-61%)
(-74%)
(-63%)
(-73%)
(+82%)1
(-61%)
Moscow total airport traffic
amounted to 7.1 million PAX,
1.4x higher vs. Istanbul (combined)
and 4.0x higher vs. Frankfurt
Sochi – the only airport
recording growth in June 2021
among top-15 airports in Europe
Russian airports showing
lower pace of traffic declines
vs. European peers
9
Aeroflot Group Performance Across Different Brands
45.1%• Flagship carrier
• Premium product (4 Stars)
• High income and middle class
• Hub and spoke model
• Scheduled network under SU
(Aeroflot) code from
• Moscow (SVO)
• St. Petersburg (LED)
• Charter operations
Premium7.8
8.4
8.4
7.1%
1.8
3.8
2.9
6.4
+2.1x
+2.2x
6M 2020 6M 2021
20.4%
34.5%
3.8
6.4
• Low cost
• High level of utilization
• Point-to-point carriage
• Connectivity on selected
routes in SVO
Source: Aeroflot Group1 PAX contribution as of 6M 2021. Absolute number of passengers in million in green circle.
Brand and Business Model 6M 2021 PAX Contribution1 and Dynamics July 2021 PAX
Regional &
Mid-price
Low Cost
+2.4x
vs Jul’20
-32.7%
vs Jul’19
6M 2021 Aeroflot Group results showed strong growth in LCC segment and further recovery across network carriers albeit
still under pressure from international segment’s slow reopening.
6M 2020 6M 2021
6M 2020 6M 2021
+60.2%
vs Jul’20
-18.5%
vs Jul’19
+44.1%
vs Jul’20
+46.4%
vs Jul’19
10
PLF
Pobeda Airlines: A New Chapter
Growing 6M 2021 PAX numbersvs. 6M 2020 and 6M 2019
Total PAX and PLF dynamicsPobeda Airlines Overview
44 B737NG aircraftas of July 2021 with single class cabin (189 seats)
6.4 mm PAXtransported in 6M 2021 (+40.1% vs. 6M 2019)
93.1% PLFLF higher vs. pre-pandemic 2019 despite industry challenges
Source: Aeroflot Group
mn PAX, change; PLF, %
Pobeda continues to lead the industry recovery leveraging its value proposition appealing to cost conscious passengers.
90.1%92.5% 93.1%
Nalchik
PermCheboksary
Moscow – SVO
Vladikavkaz
Barnaul
Min.Vody
Petrozavodsk
Sochi
Sheremetyevo base launched in 2021, code-share with Aeroflot launched from June
Ufa
10 B737NG aircraft based in Sheremetyevostarting from summer season 2021
16 domestic and one international routeslaunched from Sheremetyevo
11 routes operated together with Aeroflotcode-share in place for efficient intergroup cooperation and servicing transfer PAXMakhachkala
Ekaterinburg
St. Petersburg
Gorno-Altaysk
Ulyanovsk
Pobeda’s own flightsFlights code-shared with Aeroflot
4.62.9
6.4
6M 2019 6M 2020 6M 2021
40.1%
+2.2x
Kaliningrad
Antalya
Penza
11
1. Market Update and Operating Results
2. Network and Schedule Overview
3. Fleet Overview
4. Financial Performance
5. Appendix
12
Aeroflot routesRossiya routes
Source: Aeroflot Group
Note: 1 2019 data excludes Aurora operationg indicators for meaningful comparison.
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
Tenerife
Tivat
Tallinn
Venice
Vienna
Valencia
Vilno
Warsaw
Zagreb
Zurich
Lisbon
Havana
Washington
New York
Miami
Male
Phuket
Ho Chi Minh City
MOSCOW
Anapa
Abakan
Adler
Arkhangelsk
Astrakhan
Barnaul
Chelyabinsk
Belgorod
Magadan
Gelenzhdik
Khanty Mansiysk
Irkutsk
Kemerovo
Kaliningrad
Khabarovsk
Krasnoyarsk
Krasnodar
SamaraKazan
Saint Petersburg
Murmansk
Magnitogorsk
Mineral Waters
NizhnekamskNizhny Novgorod
Nizhnevartovsk
Novokuznetsk
New Urengoy
Novosibirsk
Perm
P. Kamchatsky
Orenburg
Rostov
Saratov
SyktyvkarSurgut
Simferopol 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
Omsk
Minsk
Chisinau
Aeroflot Group Capacity Recovery
Beginning of 2020 route network
Active recovery transformed to growth in domestic segment, while international dynamics remained subdued in light of
continuing restrictions.
Dublin
Cairo
Colombo
Osh
ASK1
2021 vs. 2019
TotalDomestic International
13
Source: Aeroflot
Aeroflot Leveraging Existing Market Opportunities
Regional flight program
While many international markets remain closed Aeroflot is leveraging existing market opportunities with regional program, additional services to CIS and operating international flights to available destinations.
Direct flights connecting
regional cities
to domestic Black Sea resorts
5 regional bases
with a combined number of
45 routes
Connecting regions to CIS Leveraging international opportunities
295 thousand passengers
transported between May and July
Operating extensive
international flight program
to currently available destinations
10.6
118.1
165.9
May-21 Jun-21 Jul-21
Regional Flight Program Traffic
thousand PAX
Yerevan
St. Petersburg
SochiKrasnodar
Mineralnye Vody
Rostov-on-Don
Ekaterinburg
Launched flights from regional
cities to Armenia
to leverage CIS leisure market
opportunities
6 regional Russian airports
connected with Yerevan in
summer 2021 season
Access to Armenia facilitated
by acceptance of Russian
vaccination certificates
Reopened Turkey and Egypt
following regulatory approval
More direct international
destinations to be opened:
Increasing frequencies and
capacity
on the back of strong demand
Seychelles(opened in April)
Mexico
Dominican
Republic
Qatar
Jordan
Morocco
14
27.7
237.0
354.2 339.6
209.7249.6 259.6 266.2
379.2417.2
501.1
629.9
870.8
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul
22% of ’19 PAX
Q2 ’21
Aeroflot Group continues to recover international passenger traffic utilizing existing market opportunities in the environment of persisting restrictions.
Source: Aeroflot
Aeroflot Group International Network
Passenger traffic recovery notwithstanding bumpy international reopening Key Highlights
Group Q2 2021 international
traffic 22% of 2019 level,
improvement compared to just 7%
recovered traffic in Q3 2020
April-June PAX growth despite
Turkey flights limitation,
which had a meaningful impact on
one of key international markets for
Russian passengers
Further increase of international
traffic
explained by lifting of some restrictions
following the government decision2020 2021
thousand PAX, quarterly data represents % of recovered traffic vs. respective period of 2019
7% of ’19 PAX
Q3 ’20
13% of ’19 PAX
Q4 ’20
16% of ’19 PAX
Q1 ’21
31%
vs ’19
15
3.151.83
3.44
Q2 2019 Q2 2020 Q2 2021
2.972.49
3.34
6M 2019 6M 2020 6M 2021
3.95 3.514.45
Q2 2019 Q2 2020 Q2 2021
3.79 3.69 4.27
6M 2019 6M 2020 6M 2021
Segment
Source: Aeroflot GroupNote: Data presented based on management accounts, scheduled flights revenue is used for calculations
Aeroflot Group Scheduled Revenue Units
Yields and RASK demonstrated solid improving performance both vs. 2020 and 2019 numbers.
Total
Domestic
International
Scheduled Yield, RUB/RPK Scheduled RASK, RUB/ASK
26.5%12.6%
(2.3%)
Q2’21 vs Q2’19
Q2’21 vs Q2’20
3.723.33 3.64
Q2 2019 Q2 2020 Q2 2021
3.58 3.49 3.49
6M 2019 6M 2020 6M 2021
9.3% (2.5%) 0.0%
3.071.72
2.88
Q2 2019 Q2 2020 Q2 2021
2.88
2.302.82
6M 2019 6M 2020 6M 2021
(6.2%) 67.3% (2.4%) 22.4%
6M’21 vs 6M’19
6M’21 vs 6M’20
15.6%12.7% 88.6%9.5% 34.3%12.7%
4.135.90 7.72
Q2 2019 Q2 2020 Q2 2021
3.94 3.907.44
6M 2019 6M 2020 6M 2021
3.20 3.22
5.47
Q2 2019 Q2 2020 Q2 2021
3.03 2.695.20
6M 2019 6M 2020 6M 2021
30.9%86.9% 90.9%88.8% 70.1%71.0% 93.6%72.0%
16
1. Market Update and Operating Results
2. Network and Schedule Overview
3. Fleet Overview
4. Financial Performance
5. Appendix
17
Aeroflot Group continues to control capacity expansion to the possible extent.
Type of
aircraft
Fleet as at
31.12.2020
6M 2021 Fleet as at
30.06.2021Delivery Phase out
Wide-body (long-haul) 56 6 (2) 60
A-33017 - (2) 15
A-3501 5 - 6
B-77729 1 - 30
B-7479 - - 9
Narrow-body (medium-haul) 225 7 (9) 223
A-31920 - - 20
A-32079 5 (9) 75
A-32133 2 - 35
B-73793 - - 93
Narrow-body (regional) 61 - - 61
SSJ-100 61 - - 61
TOTAL Aeroflot Group 342 13 (11) 344
Fleet Update
Actual and expected additions Fleet Plan
Q3-Q4 2021
Delivery Phase out
4 (3)
- (3)
2 -
2 -
- -
2 (9)
- (2)
1 (7)
1 -
- -
15 -
15 -
21 (12)
18
1. Market Update and Operating Results
2. Network and Schedule Overview
3. Fleet Overview
4. Financial Performance
5. Appendix
19
Q1 2021Change
y-o-yMillion RUB (where
applicable)Q2 2019 Q2 2020 Q2 2021
Change ’21
vs. ’20
Change ’21
vs. ’19
7,371 (34.2%) Passenger Traffic (mln PAX) 15,431 1,731 11,187 6.5x (27.5)%
75,498 (39.1)% Revenue 173,399 25,458 119,650 4.7x (31.0)%
60,307 (43.4)% PAX Traffic Revenue 152,456 12,983 104,749 8.1x (31.3)%
96,170 (29.8)% Operating Costs 152,882 58,421 114,360 95.8% (25.2)%
(20,672) 57.1% Operating Income/(Loss) 20,517 (32,963) 5,290 n/a (74.2)%
7,708 (41.0)% EBITDA 46,963 (1,962) 33,875 n/a (27.9)%
10.2% (0.3) p.p. EBITDA Margin 27.1% n/a 28.3% n/a 1.2 p.p.
(25,143) 11.8% Net Income/(Loss) 6,933 (35,786) (2,594) (92.8)% n/a
Financial Highlights: Q2 2021 vs Q1 2021
Financial results of Q2 2021 demonstrated sizable recovery, though still remain impacted by limited international operations due to COVID-19 related restrictions.
20
149,352
17,814
12,567
18,176 (2,761) 195,148
6M 2020 Volume Currency Pricing Other 6M 2021
149,352
43,935 1,530 2,099 (1,768) 195,148
6M 2020 ScheduledPassenger
Flights
CharterPassenger
Flights
Cargo OtherRevenue
6M 2021
Revenue Dynamics Decomposition
Revenue by Key Factors Revenue by Business Segments
Million RUB Million RUB
Though revenue still remains under pressure from the pandemic, Aeroflot Group delivered year-on year improvements on the back of higher demand, better yields and load factor as well as cargo segment performance.
1 Other revenue dynamics includes the effect of Aurora’s 6M 2020 own flights and other
revenue deconsolidation.
1
21
Operating Costs
Q2 2020 Q2 2021Change
’21 vs. ’20
Change
’21 vs. ’19
Operating Expense
(RUB mln)6M 2020 6M 2021
Change
’21 vs. ’20
Change
’21 vs. ’19
% of OpEx
(6M 2021)
5,325 28,195 5.3x (42.5)% Fuel 43,929 45,011 2.5% (51.4)% 21.4%
53,096 86,165 62.3% (17.0)% Opex (ex. Fuel) 151,542 165,519 9.2% (18.9)% 78.6%
5,493 21,067 3.8x (34.8)%Aircraft & passenger
servicing32,937 36,633 11.2% (40.1)% 17.4%
31,001 28,585 (7.8)% 8.1% D&A and customs duties 57,211 56,965 (0.4)% 6.1% 27.1%
13,496 16,375 21.3% (26.3)% Staff 34,620 31,136 (10.1)% (30.5)% 14.8%
4,291 4,929 14.9% (34.6)% SG&A1 10,479 9,137 (12.8)% (35.7)% 4.3%
4,244 7,685 81.1% (1.6)% Maintenance 13,469 13,140 (2.4)% (6.1)% 6.2%
655 3,455 5.3x (15.3)% Communication Expenses 4,432 6,699 51.2% (26.7)% 3.2%
(6,084) 4,069 n/a 16.5% Other expenses2 (1,606) 11,809 n/a 65.3% 5.6%
58,421 114,360 95.8% (25.2)% Total Opex 195,471 210,530 7.7% (29.1)% 100.0%
1 Includes sales and marketing expenses and administration and general expenses.2 Other expenses include short-term lease and variable lease payments, reserves accrual and reversal, catering, expenses related to Aurora code-sharing and other income and
expenses.
Operating Expenses Breakdown
In Q2 2021 operating costs decrease continued to slow down amid the Group restoring operationswhile keeping key cost lines under control.
22
8.25
0.17 (0.08) (3.44)
(1.37)
(0.44)(0.35)
0.02
0.99
3.76
0.00
3.76
8.25
CASK Q2 2020 Fuel Aircraft andPassengerServicing
D&A and CD* Staff SG&A Maintenance CommunicationExpenses
Other Expenses CASK Q2 2021 FX CASK Q2 2021ex. FX
CASK Q2 2020
Cost per ASK in Q2 2021 decreased by 54% from RUB 8.25 on the back of capacity increase resulting in fixed costs allocation over more ASKs.
Group Unit Costs
(54.4)%
0.1%
Unit Costs Dynamics
Q2 2020 Q2 2021 Change Operating Expense per ASK (CASK), RUB 6M 2020 6M 2021 Change
0.75 0.93 23.2 % Fuel 0.92 0.91 (0.8)%
7.50 2.83 (62.2)% CASK (ex. Fuel): 3.17 3.35 5.7 %
0.78 0.69 (10.7)% Aircraft and Passenger Servicing 0.69 0.74 7.7 %
4.38 0.94 (78.5)% D&A and Customs Duties 1.20 1.15 (3.6)%
1.91 0.54 (71.8)% Staff 0.72 0.63 (12.9)%
0.61 0.16 (73.3)% SG&A 0.22 0.18 (15.6)%
0.60 0.25 (57.9)% Maintenance 0.28 0.27 (5.6)%
0.09 0.11 22.8 % Communication expenses 0.09 0.14 46.3 %
(0.86) 0.13 n/a Other Expenses (0.03) 0.24 n/a
8.25 3.76 (54.4)% Total CASK 4.08 4.26 4.3 %
Q2 CASK Bridge
RUB / ASK(54.4)%
23
Jet fuel price continues to grow and presents the key headwind for the industry on top of the pandemic restrictions.
Fuel Efficiency
(gramme / ASK)Thousand RUB per tonne of jet fuel
1
Source: Aeroflot Group1 Weighted average price for 6M (2019-2021).
(1.2)%
Fuel Cost Management
Average fuel price per tonne
Aeroflot Airline:
• Q1 2021: 35.9 thd RUB (-13.2% yoy).
• Q2 2021: 41.3 thd RUB (+69.7% yoy).
• Jul 2021: 44.8 thd RUB (+5.2% mom).
Aeroflot Airline Jet Fuel Price
39.1
38.4
44.2
30
40
50
45
35
20
25
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 6M(WA)
2021 2020 2019
23.1 22.9
6M 2020 6M 2021
24
Pobeda Financial Results
PAX Traffic and Other Operating Metrics
RASK1
CASK
Pobeda Statement of Profit and Loss (IFRS)
Million RUB 6M 2020 6M 2021 Change
Revenue 12,641 28,277 2.2x
Operating Expenses 14,184 23,411 65.1%
Operating Income / (Loss) (1,543) 4,866 n/a
Operating margin n/a 17.2% n/a
Net Income / (Loss) (2,430) 2,512 n/a
EBITDA 2,751 9,877 3.6x
EBITDA margin 21.8% 34.9% 13.1 p.p.
2.202.51
6M 2020 6M 2021
2.9
6.4
6M 2020 6M 2021
2.472.08
6M 2020 6M 2021
Million PAX, dynamics y-o-y
RUB / ASK, dynamics y-o-y
RUB / ASK, dynamics y-o-y
Pobeda showed outstanding results amid further expansion of operations in 6M 2021.
RASK +14%
PAX +2.2x
RPK +2.0x
ASK +95.9%
PLF +3.0 p.p.
CASK -16%
Note: based on managerial accounts, extract from Group consolidated financial statements under IFRS. Includes amortization and maintenance expenses for aircraft subleased from Aeroflot and Rossiya.1 Calculation based on Total Revenue of the Company2 Excluding net FX gain from lease liabilities revaluation in the amount of 2.2 bn RUB in 6M 2021 (6.8
bn RUB net FX loss in 6M 2020) and the associated deferred tax in line with accounting treatment in consolidated financial statements; FX gain/loss eliminated in consolidated financials due to hedging of FX-denominated liabilities with FX-denominated revenues (non-cash income).
25
Liquidity
Leverage and Liquidity
Billion RUB31 December
2020
31 March
2021
30 June
2021
June vs.
March, %
Borrowings 88.6 88.7 107.1 20.8%
Lease Liabilities 662.5 664.2 674.6 1.6%
Pension Liabilities 0.8 0.7 0.7 (0.3)%
Total Debt 751.9 753.7 782.5 3.8%
Cash and Short-
Term Investments93.8 78.2 113.2 44.6%
Net Debt 658.2 675.4 669.3 (0.9)%
1 31-Dec-2020 exchange rate – 73.88 RUB per USD, 30-Jun-2021 exchange rate – 72.37 RUB per USD.
Debt Profile1
Billion RUB
Cash position of RUB 113 billion and undrawn credit lines of RUB 153 billion.
Net Debt / EBITDA
2020 and 2021 Net Debt / EBITDAratio mostly affected by lower EBITDAy-o-y amid pressure on financials
43.193.8 78.2
113.2
148.0
142.8143.2
152.7
191.1
236.5221.4
265.9
30-Sep-20 31-Dec-20 31-Mar-21 30-Jun-21
Cash and ST investments Available credit lines
12.6
24.4
31.2
11.5
30-Sep-2020 31-Dec-2020 31-Mar-2021 30-Jun-2021
26
1/7/2019 2/7/2019 3/7/2019 4/7/2019 5/7/2019 6/7/2019 7/7/2019
2019 2021
61.5
73.8
Improved Booking Trends
2021 vs 2019 Weekly Sales Dynamics, Tickets, SU Code
Increasing number of bookings on the back of expansion in domestic segment and strong demand for air transportationin summer season.
Unearned traffic revenue (bn RUB)
Jan Feb Mar Apr May Jun Jul Aug
Unearned traffic revenue includes proceeds from ticketsales, that will be recognized as revenue once flight serviceis delivered.
12.3RUB bn
31 Mar2019
30 Jun2019
31 Mar2020
30 Jun2020
31 Mar2021
30 Jun2021
75.6
83.9
46.850.8
8.3RUB bn
4.0RUB bn
Note: includes mid-August sales
27
22.8
9.4 1.9
8.7 9.3 11.0
20.3 44.3
11.9
(3.5)
6.7
29.9
Q1'19 Q2'19 Q1'20 Q2'20 Q1'21 Q2'21
Working Capital changes and otherCFO before changes in working capital
Operating Cash Flows and Monthly Costs
Monthly costs lower vs. 2019… … and Operating Cash Flow significantly recovered
Billion RUB
54.6
40.4
Monthly costs inQ2'19
Monthly costs inQ2'21
Billion RUB, monthly average, includes
OPEX and net finance costs
Cash flows significantly improved both year-on-year and quarter-on quarter on the back of strong demand, however industry environment remains challenging.
53.6 bn RUB 40.9 bn RUB
(26)%
28
1. Market Update and Operating Results
2. Network and Schedule Overview
3. Fleet Overview
4. Financial Performance
5. Appendix
29
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21
Improved Bookings Generate More Cash
Recovery of Number of Weekly Bookings (SU code)
Increasing number of bookings translates into improving cash flows.
Unearned traffic revenue (bn RUB)
Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021
Unearned traffic revenue includes proceeds from ticketsales, that will be recognized as revenue once flight serviceis delivered.
29.2RUB bn
31 Dec2018
30 Jun2019
31 Dec2019
30 Jun2020
31 Dec2020
30 Jun2021
49.9
83.9
53.450.8
44.6
73.8
(2.6)RUB bn
34.0RUB bn
30
Operating Data – Q2 2021
Indicators Pobeda RossiyaAeroflot
Q2 2021 Y-o-Y Q2 2021 Y-o-Y Q2 2021 Y-o-Y Q2 2021 Y-o-Y
Passenger Traffic th PAX 5,095 5.8х 3,643 8.3х 2,449 7.3х 11,187 6.8х
International Routes th PAX 1,223 29.6х 62 - 263 28.1х 1,548 30.5х
Domestic Routes th PAX 3,871 4.6х 3,580 8.1х 2,187 6.7х 9,638 6.0х
Passenger Turnover mn pkm 12,165 6.1х 5,906 8.4х 5,676 6.6х 23,747 6.6х
International Routes mn pkm 4,271 22.5х 154 - 845 12.1х 5,270 20.3х
Domestic Routes mn pkm 7,895 4.3х 5,752 8.2х 4,831 6.1х 18,477 5.6х
Passenger Capacity mn ASK 16,889 3.9х 6,298 7.5х 7,229 4.4х 30,417 4.5х
International Routes mn ASK 6,054 15.0х 194 - 983 14.1х 7,231 15.3х
Domestic Routes mn ASK 10,836 2.8х 6,104 7.3х 6,247 3.9х 23,186 3.7х
Passenger Load Factor % 72.0% 25.3 p.p. 93.8% 9.8 p.p. 78.5% 26.1 p.p. 78.1% 25.4 p.p.
International Routes % 70.5% 23.6 p.p. 79.4% - 86.0% (14.0) p.p. 72.9% 18.1 p.p.
Domestic Routes % 72.9% 26.1 p.p. 94.2% 10.3 p.p. 77.3% 27.1 p.p. 79.7% 27.1 p.p.
Flight Hours hours 105,653 3.0х 44,696 7.7х 51,493 4.6х 201,842 3.9х
Aeroflot Group
Note: Comparison of 2021 Aeroflot Group figures vs. corresponding period of previous year is based on pro forma results, which exclude the results of Aurora Airlines in 2020.
31
Source: Data presented based on management accounts for scheduled flights of Aeroflot Group (excluding charter flights)
6M 2021 Operating Data by Region (Scheduled Routes)
Americas Russia CIS
Europe Middle East and Africa Asia
Group operations in select regions are recovering from COVID-related decline in demand, others still remain under pressure.
(22.0)% (21.2)%
(17.1)%
(3.5) p.p.
Passengerscarried
RPK ASK PLF
92.3 % 92.7 %
57.5 %
14.8 p.p.
Passengerscarried
RPK ASK PLF
26.9 %
42.7 %
34.9 %
4.0 p.p.
Passengerscarried
RPK ASK PLF
(75.5)% (75.4)% (75.0)%
(1.1) p.p.
Passengerscarried
RPK ASK PLF
46.2 %43.5 %
22.5 %
11.1 p.p.
Passengerscarried
RPK ASK PLF
(79.6)% (79.7)% (77.7)%
(6.5) p.p.
Passengerscarried
RPK ASK PLF
32
Well-balanced fleet structure in line with Group’s strategy
Aircraft TypeOperated by Total as of Total as of Change vs.
Aeroflot Subsidiaries 30-Jun-21 31-Dec-20 31-Dec-20
Wide-body 41 19 60 56 4
Airbus A330 15 - 15 17 (2)
Airbus A350 6 - 6 1 5
Boeing 777 20 10 30 29 1
Boeing 747 - 9 9 9 -
Narrow-body (medium-haul) 143 80 223 225 (2)
Airbus A319 - 20 20 20 -
Airbus A320 70 5 75 79 (4)
Airbus A321 35 - 35 33 2
Boeing 737 38 55 93 93 -
Narrow-body (regional) 25 36 61 61 -
SSJ 100 25 36 61 61 -
TOTAL Aeroflot Group 209 135 344 342 2
Aeroflot Group Fleet Breakdown
Aeroflot Group Fleet Overview Breakdown by Aircraft
Breakdown by Company
Narrow-body
(medium-haul)65%
Narrow-body
(regional) 18%
Wide-body17%
Aeroflot61%
Rossiya27%
Pobeda12%
33
In 6M 2021 revenue from scheduled passengers increased by 38% on the back of demand recovery in Russia, CIS and Middle East and Africa regions after significant pressure on operations in 6M 2020 due to COVID-19.
Traffic Revenue Analysis – 6M 2021
1 Data presented based on management accounts2 Data presented based on management accounts for Aeroflot airline and routes of subsidiary airlines under commercial management of Aeroflot
Traffic Revenue Breakdown by Type
Scheduled Traffic Revenue by POS2
Revenue from Scheduled Passengers (RUB mln)1
Total Passenger Revenue (Scheduled + Charter, RUB mln)
Q2 2020 Q2 2021 Y-o-Y Region6M
2020
6M
2021Y-o-Y
6M 2021
% of sch.
revenue
10,861 65,221 6.0x Russia 53,956 104,004 92.8% 65.6%
461 6,716 14.6x Europe 24,999 9,781 (60.9)% 6.2%
510 6,440 12.6x Asia 20,217 11,610 (42.6)% 7.3%
120 8,469 70.6x CIS 4,260 13,196 3.1x 8.3%
350 1,532 4.4xNorth and Central
America5,287 3,360 (36.4)% 2.1%
62 11,099 176.2xMiddle East and
Africa5,784 16,487 2.9x 10.4%
12,364 99,477 8.0x Total 114,503 158,438 38.4% 100.0%
Q2 2020 Q2 2021 Y-o-Y Region6M
2020
6M
2021Y-o-Y
6M 2021
% of revenue
11,479 67,399 5.9x Domestic 55,626 106,954 92.3% 64.8%
1,504 37,350 24.8x International 63,965 58,102 (9.2)% 35.2%
12,983 104,749 8.1x Total 119,591 165,056 38.0% 100.0%
Sheduled Passenger Flights
88.3%
Charter Passenger Flights 3.7%
Cargo 8.0%
Sales abroad10.0%
Online40.7%
Call center and own branches
5.4%
Sales in Russia43.9%
34
3.36
5.71
3.533.65
7.08
4.41
Domestic International Total
3.50 3.80 3.663.49
6.96
4.23
Domestic International Total
1.74
3.09
1.83
2.91
5.16
3.44
Domestic International Total
2.322.67 2.49
2.83
4.98
3.34
Domestic International Total
RUB RUB
3.2%0.7% 1.1%Q2 Yield (Scheduled + Charter PAX Revenue / RPK) Q2 RASK (Scheduled + Charter PAX Revenue / ASK)
RUB / RPK RUB / ASK
% Y-o-Y increase 2020 2021
RUB RUB
3.2%0.7% 1.1%6M Yield (Scheduled + Charter PAX Revenue / RPK) 6M RASK (Scheduled + Charter PAX Revenue / ASK)
RUB / RPK RUB / ASK
Source: Aeroflot GroupNote: Data presented based on management accounts, scheduled and charted passenger flights revenue is used for calculations
Aeroflot Group Blended Flights Revenue Units
Positive trends in both domestic and international segments in Q2 on the back of demand recovery and persisting
limitations on international flights.
24.0%
% Y-o-Y increase 2020 2021
8.6%
25.0%
67.0%
67.0%
87.8%
83.4%
(0.4)%
15.8%
86.5%
22.1%
33.8%
35
11,092
17,814
18,176 (2,761)
12,567 (2,713)(293)
3,656 (2,675)(1,879)
440 1,533 (13,373)
41,583
EBITDA 6М 2020
Volume Pricing Other FX benefit on
revenue
FX drag on
costs
Fuel* Staff* Aircraft and
PAX*
Comm.
Expenses*
Maintenance* Admin & Sales
& Marketing*
Other OPEX* EBITDA 6М 2021
Key driver of EBITDA growth was increase in scale of operations and positive pricing effect on the back of recovery after COVID-related pressure on demand in 6M 2020.
EBITDA Evolution
* Excluding currency impact
Total effect on revenue
∑=45,796 RUB mlnTotal effect on costs
∑=(15,304) RUB mln
Net volume and price effect
∑=33,229 RUB mln
Net FX effect
∑=9,854 RUB mlnNet volume and price effect
∑=(12,591) RUB mln
36
Operating and Free Cash Flow improved in 6M 2021 y-o-y on the back of operating program expansion and increase in demand.
Operating and Free Cash Flows
56,005
13,612
(33,630)
56,739
19,709 (2,183)3,851 (7,891)
36,595
20,300
56,895
(7,612)
(13,897)
17,459 3,160
Loss BeforeIncome Tax
D&A InterestExpense
Unrealized NetFX Gain
Effect fromrevenue
hedging (leasehedge
accounting)
Other Adj.Before
WorkingCapital
Changes
Cash FlowsFrom
OperatingActivitiesBefore
WorkingCapital
Changes
WorkingCapital
Changes andIncome Tax
Net CashFlows FromOperatingActivities
Purchase ofPPE &
CapitalizedExpenses
DepositPlacementand Return
Net Pre-delivery
Payments forAircraft
Net LeaseDeposits for
a/c and Other
Free CashFlow 6M 2021
Free CashFlow 6M 2020
37
Personnel and Remuneration
Committee
(3 members)
Audit Committee
(3 members)
Strategy Committee
(8 members)
NameAudit
Committee
Personnel and
Remuneration
Committee
Strategy
Committee
Vitaly Saveliev Chairman
Mikhail Poluboyarinov
Maksut Shadayev
Igor Kamenskoy Member Chairman Chairman
Yaroslav Kuzminov Member Member
Maksim Liksutov
Timur Maksimov Member
Roman Pakhomov Chairman Member Member
Dmitry Peskov Member
Yuri Slyusar Member
Sergey Chemezov
Independent director according to the Russian Corporate Governance Code
Board of Directors
Corporate Governance
Executive Board
General Meeting of Shareholders
Board of Directors
Incorporated in Russia, PJSC Aeroflot is subject to
Russian corporate governance regulations and
follows Russian Corporate Governance Code
The Board of Directors is currently composed
of 11 members. The Board’s composition is well
balanced from the members’ background perspective.
Board of Directors
PJSC Aeroflot
JSC Rossiya Airlines 75%-1 sh.
LLC Pobeda Airlines 100%
JSC Aeromar
On-board sales/catering51%
LLC Aeroflot-Finance
Financial services100%
JSC Sherotel
Hotel services100%
Aeroflot Aviation School
Education services100%
Note: The Group structure as at 30 June 2021; Aeroflot Group consolidates all entities: PJSC Aeroflot and all subsidiaries.
PJSC Aeroflot also owns 45.0% of JSC AeroMASh-AB (Aviation security), 2.43% of JSC Sheremetyevo International Airport (base airport), 3.85% of PJSC Transport Clearing House (mutual settlements between agencies and airlines).
LLC A-Technics
Maintenance 100%
38
Aeroflot Group Structure
Airlines
PJSC Aeroflot owns stakes in two key aviation subsidiaries and a number of companies providing services in aviation supply chain from maintenance and catering to education.
Address: 119019, Russia, Moscow, Arbat St. 1
E-mail: [email protected]
Website: www.aeroflot.ru
Investor Relations Contacts
