A E R O F L O T G R O U PQ2 AND 6M 2019 IFRS R ESULTS

30 August 2019

Speakers:

Andrey Chikhanchin – Deputy CEO for Commerce and Finance

Andrey Panov – Deputy CEO for Strategy, Service and Marketing

Ivan Batanov – Head of Revenue Management

2

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

presentation slides, you agree to the following.

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

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

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

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

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

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

contents.

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

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

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

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

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

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

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

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

Disclaimer

3

Aeroflot Group 6M 2019 Highlights

91.9 bn

80.0 bn24.9 mln

PAX

+ 13.4 %

ASK

+ 14.9 % + 17.2 %

266 bn311 bn

Revenue (RUB)

6M 2018 6M 2019

¹ Immaterial deviations throughout the presentation are explained by rounding

• In 6M 2019 Aeroflot Group has continued operational development via expanding capacity onthe back of opportunities provided by the market.

• Notwithstanding double-digit capacity growth which allowed the Group to significantlyincrease number of passengers transported, Aeroflot managed to improve yields and boostrevenues y-o-y.

28.2 mln

+ 2.6 %

3.633.73

Blended Yield (RUB)

4

1. Market Update and Operating Results

2. Network and Schedule Overview

3. Fleet Overview

4. Financial Performance

5. Appendix

5

28.2

8.24.2 3.9

8.5

13.2

AeroflotGroup

S7 Group Ural Airlines UTair Group ForeignCarriers

Others

7.7 8.5

6.27.0

13.915.4

Q2 2018 Q2 2019

17.2 18.4

18.0 19.7

35.238.1

Q2 2018 Q2 2019

International Routes

Domestic Routes

30.7 33.2

30.1 33.0

60.8 66.2

6M 2018 6M 2019

13.8 15.5

11.112.7

24.928.2

6M 2018 6M 2019

Source: TCH, Company estimates. Figures include foreign carriers’ traffic.

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

mln PAX, 6M 2019

6M 2018

Growing Market Share (PAX)

6M 2019

+3.3

+1.0

+0.2

+1.3

Change in PAX million

Source: TCH, Rosaviatsia, Company estimates / 1 UTair Group calculation in 2019 includes Utair and Utair-

Cargo, in 2018 includes UTair, Utair-Cargo and Turukhan

Foreign Airlines Other Russian Airlines

+1.7 p.p.

11.2%

10.1%

12.6%

7.2%

9.1%

5.7% Total Market 6.2%

6.8% International 7.2%

4.5% Domestic 4.8%

Russian Air Transportation Market (million PAX)

incl. PAX of Russian and Foreign Carriers and intl. transit PAX

Aeroflot Group (million PAX)

8.1%

9.7%

12.4%

14.7%

Market Dynamics Net of Aeroflot Group

• Aeroflot Group continued to deliver growth increasing PAX by 13.4% in 6M 2019 expanding market share.

8.9%

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

38.7% Aeroflot Group 40.3%

1

+0.3-0.8

8.2%

13.4%

Competitive Dynamics

40.9%

11.8%6.5%5.9%

15.3%

19.6%

42.6%

12.3%6.4%

5.8%

12.8%

20.0%

6

Aeroflot Group Multi-Brand Strategy

0.7 0.7

63.1%

• Flagship carrier

• Premium product (4 Stars)

• High income and middle class

• Hub and spoke model

• Scheduled network operated

under SU (Aeroflot) code

• Scheduled flights from

Moscow are integrated in

Aeroflot network in SVO

• Charter operations

Premium

Regional and Charter

Regional / Far-East

Low Cost

Business Model Focus Airport PAX Contribution1Brand PAX Growth

6M 2019

16.2 17.8

17.8

+9.7%

4.8 5.1

3.2

4.6

7.2%

+44.7%

+2.3%

6M 2018 6M 2019

6M 2018 6M 2019

6M 2018 6M 2019

6M 2018 6M 2019

18.1%

16.2%

2.6%

5.1

4.6

0.7

• Moscow

(Sheremetyevo)

• Saint-Petersburg

(Pulkovo)

• Moscow

(Sheremetyevo,

Vnukovo)

• Vladivostok,

Khabarovsk,

Yuzhno-Sakhalinsk

• Moscow (Vnukovo)

• Flights from the

regions

• Short and mid-haul flights

• Focus on domestic

segment,

• Popular underserved

international routes

• Point-to-point carriage

• The Far East airline flying on

short- and mid-haul direct

international and domestic

routes

• Flights to remote cities (local

flights)

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

• Aeroflot and Pobeda – key engines of the Group – increased traffic by 1.6 and 1.4 million PAX respectively.

1 PAX contribution as of 6M 2019. Absolute number of passengers in million in green circle.

7

3.74.4

4.8

2.12.5

2016 2017 2018 6М 2018 6М 2019

Aeroflot Airline Domestic and International Transit

Share of international-international transit in total traffic of Aeroflot Airline

13.1% 13.6% 13.6% 12.8% 14.2%

Increase in International – International Traffic

Average weekly frequency per route – Aeroflot airline Considerable share of transit of Aeroflot airline in SheremetyevoGrowth

6M 2019

… Results into a Flexible Approach to Transit FlowsGrowing Connectivity of Aeroflot Airline’s Flights1 ...

Total Aeroflot airline int. – int. transit traffic, million PAX (Aeroflot flights only)

21.2%

Key International Transit Markets

Connectivity ratio

2.0%

1.2%

2.7%

Total 6M 2019

traffic:

17.8 million pax

NEA

SWA

SEA

ME

WE

EE

NA

Source: Company data.1 Data for Aeroflot airline’s own flights

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

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

destinations.

13.7 13.9

24.325.0

17.6 17.9

22.3x 23.8x

6М 2018 6М 2019

12.5 13.113.9

23.124.2

25.5

16.217.0

18.0

19.1x 21.2x 22.0x

2016 2017 2018

International Domestic Combined

11.0 mln

61.3%

2.5 mln

14.2%2.5 mln

14.5%

1.8 mln10.0%

Point-to-pointInternational - InternationalInternational - Domestic / Domestic - InternationalDomestic - Domestic

8

92.5% 92.6% 92.5%

Q1 Q2 6M

1,401.71,754.7

3,156.4

2,039.62,527.0

4,566.6

Q1 Q2 6M

2018 2019

62

Krasnodar

Rostov

NazranMakhachkala

Astrakhan

Volgograd

KazanPerm

Chelyabinsk

Ekaterinburg

Surgut

Novosibirsk

Bergamo

Bratislava

Cologne

Memmingen

Girona

Samara

Cheboksary

Larnaca

Tivat

Saint Petersburg14

Nizhnekamsk

Moscow

Vladikavkaz

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

• Network comprising 108 routes (62 unique for the Group)

Fleet• 30 Boeing 737-800 NG (30.06.2019)

• Single class cabin with 189 seats per plane

Key features

and

achievements in

6M 2019

• 4.6 million PAX in 6M 2019 (+44.7% y-o-y)

• 6M 2019 PLF of 92.5%

• International RPK is 30% of total Pobeda traffic

• Intra-region and international flights from the regions development

2023 Goals• Accelerated expansion in domestic and international segments

• c25-30 mln PAX annually

Strong Passenger Load Factor

Overview of Pobeda

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

Growing Passenger Flows

thousand PAX

Pobeda’s Network (Summer 2019)

PLF, %

Tbilisi

Krasnoyarsk

Pisa

Base cities with >10 routes served from city

(number of routes in circle)

Baden-Baden

Ulan-Ude

45.5%

44.0%

44.7%

Karlovy VaryLeipzig

Venice

Kaliningrad

Eindhoven

Helsinki

Innsbruck

Kemerovo

Salzburg

Berlin

Rome

Kirov

Min.Vody

Petrozavodsk

Tomsk

XXCities with <10 routes served from city

Cities where the airline operates to

Anapa

AntalyaBodrum

Bari

Cagliari

CataniaDalaman

Gelendzhik SochiGenova

Gazipaşa

Istanbul Gyumri

Omsk

Ostende

Palermo

Riga

Rimini

TyumenUlyanovsk

Varna

Batumi

Magnitogorsk

12

Pobeda Airline: Acceleration of Growth

9

1. Market Update and Operating Results

2. Network and Schedule Overview

3. Fleet Overview

4. Financial Performance

5. Appendix

10

12.610.7

14.613.2

7.9

13.8

11.1

16.914.5

8.1

Total scheduled International Domestic Medium-haul Long-haul

6M 2018 6M 2019

Aeroflot routes

Rossiya routes

Aurora routes

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

• Accelerated growth of destinations, sustained focus on increase in frequencies on scheduled routes.

• Aeroflot Group operates flights to 187 unique destinations in 57 countries (in 2019 summer schedule, incl. Russia).

(6M 2019, y-o-y)

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

9.1%3.9%

15.8%9.9%

1.9%

# of Flights Evolution by Region1

Increase in Group frequencies by 9.1% was mainly supported by expansion of the number of frequencies in domesticsegment (+15.8%) and in the sector of medium-haul routes (+9.9%).

Los Angeles

MOSCOW

Malaga

Alicante

Amsterdam

Brussels

Stockholm

AthensAntalya

Barcelona

Belgrade

Bologna

BudapestParis

Copenhagen

DresdenDusseldorf

Rome

Frankfurt

Geneva

Hannover

Hamburg

Helsinki

Heraklion

Istanbul

Larnaca

London

Lyon

Madrid

Munich

MilanNice

Oslo

Bucharest

Prague

Riga

Thessaloniki

SofiaSplit

Stuttgart

Berlin

Tbilisi

Tenerife

Tivat

Tallinn

Venice

Vienna

Valencia

Kaunas

Warsaw

Zagreb

Zurich

Lisbon

Havana

Washington

New York

Miami

Male

Phuket

Ho Chi Minh City

Geographic Network

MOSCOW

Anapa

Abakan

Adler

Arkhangelsk

Astrakhan

Barnaul

Chelyabinsk

Belgorod

Magadan

Gelenzhdik

Khanty Mansiysk

Irkutsk

Kemerovo

Kaliningrad

Khabarovsk

Krasnoyarsk

Krasnodar

SamaraKazan

Saint Petersburg

Murmansk

Magnitogorsk

Mineral Waters

NizhnekamskNizhny Novgorod

Nizhnevartovsk

Novokuznetsk

New Urengoy

Novosibirsk

Perm

P. Kamchatsky

Orenburg

Rostov

Saratov

SyktyvkarSurgut

Simferopol

Salekhard

Stavropol

EkaterinburgTyumen

TomskUfa

Yu. Sakhalinsk

Volgograd

Voronezh

Vladivostok

Yakutsk

Aktobe

Almaty

Shymkent

Yerevan

Bishkek

Atyrau

Baku

KaragandaChisinau

KostanayMinsk

Aktau

SamarkandTashkent

Astana

Beirut

Dubai

Teheran

Tel Aviv

Bangkok

HanoiHong Kong

Guangzhou

Delhi Shanghai

Tokyo

Beijing

Seoul

Ulan Bator

Sochi

Frankfurt

Dalian

Harbin

Busan

Antalya

BarcelonaBurgas

Paris

Dusseldorf

Rome

Hamburg

Varna

Larnaca

Munich

MilanNice

Prague

Rimini

Berlin

TivatIstanbul

Vienna

Makhachkala

Orly

Omsk

Minsk

Chisinau

Aeroflot Group Network

9.6 %

16.5 %

5.8 %

(10.3)%

15.7 %

12.1 %

8.1 %

Total

Middle East & Africa

CIS

North & Central America

Asia

Europe

Russia

11

2.71

3.08

2.922.88

3.032.97

Domestic International Total

2.92

3.35

3.163.07

3.20 3.15

Domestic International Total

3.33

4.00

3.713.58

3.943.79

Domestic International Total

3.51

4.29

3.933.72

4.133.95

Domestic International Total

• Competitive positioning, adjustment of fuel surcharges, changing mix of operations at subsidiaries’ level due to

rapid expansion of LCC and high base of previous year affected RUB yields in 6M 2019.

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

% Y-o-Y increase 2018 2019

Q2 Yield (PAX Revenue / RPK)

RUB

Q2 RASK (PAX Revenue / ASK)

RUB

0.4%

5.4%

(0.4)%

(3.7)%(4.4)%

6.1%

Aeroflot Group Scheduled Flights Revenue Units

6M Yield (PAX Revenue / RPK)

RUB

6M RASK (PAX Revenue / ASK)

RUB

2.2% 6.6%1.5%

(1.4)%(1.9)%

7.4%

12

9.4%

5.4%4.6%

5.8%

7.9%

(5.8)%

Jan Feb Mar Apr May Jun

Aeroflot Airline Total Yield, 2019

Aeroflot Airline Yield Dynamics (Monthly)

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

Aeroflot Airline Total Yield, 2018

• Aeroflot airline yields showed significant improvement on a monthly basis throughout both first half of 2018 and

2019 (y-o-y).

• Having grown by an impressive 17.2% in June 2018 the level of yields represented high base for further yield

increases in 2019 and resulted into adjustment of June 2019 yield by 5.8%.

• July 2019 yields are also affected by high base effect of World Cup in 2018, which is exacerbated in international

segment by exchange rate dynamics of 2019.

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

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

adjustments in Revenue Management System (RMS)

0.4%

4.4%

7.7%

5.1%

6.2%

17.2%

Jan Feb Mar Apr May Jun Jan Feb Mar Apr May

Jun

13

1. Market Update and Operating Results

2. Network and Schedule Overview

3. Fleet Overview

4. Financial Performance

5. Appendix

14

1 Excluding planes not operated by the airlines of the Group.

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

Breakdown by Company 1

Breakdown by Aircraft 1

Narrow-body

(medium-haul)67%

Narrow-body

(regional) 17%

Wide-body16%

Aeroflot69%

Rossiya17%

Aurora6%

Pobeda8%

Aircraft TypeOperated by Total as of Total as of Change vs.

Aeroflot Subsidiaries 30-June-19 31-Dec-18 31-Dec-18

Wide-body 41 19 60 58 2

Airbus A330 22 - 22 22 -

Boeing 777 19 10 29 27 2

Boeing 747 - 9 9 9 -

Narrow-body (medium-haul) 160 83 243 244 (1)

Airbus A319 - 31 31 35 (4)

Airbus A320 78 6 84 85 (1)

Airbus A321 35 - 35 37 (2)

Boeing 737 47 46 93 87 6

Narrow-body (regional) 49 13 62 64 (2)

DHC 8 - 10 10 11 (1)

DHC 6 - 3 3 3 -

SSJ 100 49 - 49 50 (1)

Total fleet1 250 115 365 366 (1)

Aeroflot Group Fleet Overview

Aeroflot Group Fleet Breakdown

15

12/31/2018 2019E 2020E 2021E 2022E 2023E

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

trends and opportunities.

Aeroflot Group Fleet as at Year-end2

Number of aircraft

Delivery/Phase-out Schedule1

Type of 6M 2019 Fleet as at

30.06.20191

Q3-Q4 2019E

aircraft Delivery Phase out Delivery Phase out

Wide-body (long-haul) 2 - 60 - (3)

A-330 - - 22 - (3)

B-777 2 - 29 - -

B-747 - - 9 - -

Narrow-body (medium-haul) 7 (8) 243 3 (7)

A-319 - (4) 31 - (1)

A-320 1 (2) 84 - (4)

A-321- (2) 35 - (2)

B-7373

6 - 93 3 -

Narrow-body (regional) - (2) 62 10 (1)

SSJ-1004 - (1) 49 10 -

DHC-8 - (1) 10 - (1)

DHC-6 - - 3 - -

TOTAL 9 (10) 365 13 (11)

1 As of 30.06.2019, not including aircraft leased or subleased to other operators.2 According to existing strategy. Not including aircraft leased or subleased to other operator. Number of planes in 2023 is average for the year.3 Deliveries of 3 737 MAX are likely to be delayed to 2020.4 Additions are subject to corporate approval.

366

~520

Fleet Expansion Strategy

16

1. Market Update and Operating Results

2. Network and Schedule Overview

3. Fleet Overview

4. Financial Performance

5. Appendix

17

Financial Highlights: 6M 2019

• Financial results of 6M 2019 are impacted by high base of previous year as well as continuing fuel and

aircraft and passenger servicing costs pressure.

• IFRS 16 implementation also resulted in major changes on the EBITDA, Operating and Net Loss lines.

• Restated bottom line figure in 6M 2018 is connected with FX revaluation of operating lease liabilities on the

balance sheet as hedge accounting has been implemented prospectively starting from January 1, 2019.

1 Restated financial results presented based on IFRS 16 full retrospective application where applicable. Q2 and 6M 2019 presented based on IFRS 16 full retrospective application.

Q2 2018

restated1 Q2 2019 ChangeRUB mln

(where applicable)

6M 2018

restated1 6M 2019 Change

13,871 15,431 11.2% Passenger Traffic (mln PAX) 24,856 28,195 13.4%

153,880 173,399 12.7% Revenue 265,822 311,440 17.2%

135,456 152,456 12.6% PAX Traffic Revenue 232,352 271,711 16.9%

41,431 46,963 13.4% EBITDA 59,014 68,296 15.7%

26.9% 27.1% 0.2 p.p. EBITDA margin 22.2% 21.9% (0.3) p.p.

20,649 20,517 (0.6)% Operating Income 17,453 14,618 (16.2)%

(19,963) 6,933 n/a Net Income/(Loss) (30,379) (8,784) (71.1)%

(28,944)Loss on FX (Operating Lease Aircraft

Liabilities Revaluation) After Tax(27,498)

8,980 6,933 (22.8)% Adjusted Net Income/(Loss) (ex. Loss on FX) (2,881) (8,784) >3x

18

265,822

38,752 607 554 5,705 311,440

6M 2018 ScheduledPassenger

Flights

CharterPassenger

Flights

Cargo OtherRevenue

6M 2019

265,822

29,815 10,631 3,165 2,006 311,440

6M 2018 Volume Currency Pricing Other 6M 2019

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

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

Russia, Europe and Asia

Revenue by Key Factors

RUB mln

17.2% 17.2%

Revenue by Business Segments

RUB mln

14.6% 0.2% 0.2% 2.1%+ + +

Growth in operating metrics:RPK + 14.0%PAX + 13.4%

Depreciation ofRUB in 6M 2019y-o-y by c10%vs. USD and byc3% vs. EUR Growth across geographies:

Russian revenue +20.8%International revenue +16.1%

Currency effect on other revenue

Domestic yieldup by 6.9%,internationalyield flat y-o-y

11.2% 4.0% 1.2% 0.8%+ + +

Revenue Growth Decomposition

19

Operating Costs

Q2 2018

restated1 Q2 2019Change

y-o-y

Change

ex. FX

Operating Expense

(RUB mln If not stated

otherwise)

6M 2018

restated1 6M 2019Change

y-o-y

Change

ex. FX

% of Total OpEx

(6M 2019)

43,843 49,008 11.8% 10.2% Fuel 77,885 92,708 19.0% 15.4% 31.2%

89,388 103,874 16.2% 15.1% Opex (ex. Fuel) 170,484 204,114 19.7% 17.4% 68.8%

26,725 32,294 20.8% 20.5%Aircraft and passenger

servicing48,633 61,165 25.8% 23.5% 20.6%

20,782 26,446 27.3% 27.3% D&A and customs duties 41,561 53,678 29.2% 29.2% 18.1%

20,080 22,215 10.6% 9.9% Staff 41,298 44,794 8.5% 8.1% 15.1%

6,932 7,534 8.7% 7.9% SG&A2 13,092 14,203 8.5% 5.4% 4.8%

5,992 7,813 30.4% 26.1% Maintenance 10,101 13,987 38.5% 29.2% 4.7%

1,953 2,135 9.3% (0.7)% Short-term and immaterial lease 2,724 3,309 21.5% 10.4% 1.1%

6,924 5,437 (21.5)% (25.3)% Other expenses3 13,075 12,978 (0.7)% (8.4)% 4.4%

133,231 152,882 14.7% 13.5% Total Opex 248,369 296,822 19.5% 16.8% 100.0%

• In 6M 2019 operating costs were significantly impacted by expansion of operations with fuel and aircraft and passenger

servicing being the key contributors to growth.

• Lease, amortization, maintenance and other lines have been affected by IFRS 16 implementation.

1 Restated financials presented based on IFRS 16 full retrospective application. Q2 and 6M 2019 presented based on IFRS 16 full retrospective application.2 Includes sales and marketing expenses and administration and general expenses.3 Other expenses include Global Distribution Systems cost, reserves accrual and reversal, catering expenses, banks’ commissions and other operating income and loss.

20

3.11

0.04 0.06

0.06 (0.03) (0.01) 0.03 0.00 (0.02)

3.23

(0.07)

3.16 3.11

Restated CASK6M 2018

Fuel Aircraft andPassengerServicing

D&A and CD* Staff SG&A Maintenance Short-term andImmaterial Lease

Other Expenses CASK 6M 2019 FX CASK 6M 2019ex. FX

Restated CASK6M 2018

Group Unit Costs

* Customs duties

• Cost per ASK increased by 4.0% from RUB 3.11 in 6M 2018 to RUB 3.23 in 6M 2019 on the back of fuel, aircraft and

passenger servicing and maintenance growth.

Q2 2018

restated1 Q2 2019 Change Operating Expense per ASK (CASK), RUB6M 2018

restated1 6M 2019 Change

1.01 1.00 (0.8)% Fuel 0.97 1.01 3.6%

2.06 2.13 3.2% Opex (ex. Fuel): 2.13 2.22 4.2%

0.62 0.66 7.3% Aircraft and Passenger Servicing 0.61 0.67 9.5%

0.48 0.54 13.0% D&A and Customs Duties 0.52 0.58 12.4%

0.46 0.45 (1.8)% Staff 0.52 0.49 (5.6)%

0.16 0.15 (3.5)% SG&A 0.16 0.15 (5.6)%

0.14 0.16 15.8% Maintenance 0.13 0.15 20.5%

0.05 0.04 (3.2)% Short-term and Immaterial Lease 0.03 0.04 5.7%

0.16 0.11 (30.2)% Other Expenses 0.16 0.14 (13.6)%

3.07 3.13 1.9% Total Opex 3.11 3.23 4.0%

1.7%(2.3)%4.0%

1 Restated financials presented based on IFRS 16 full retrospective application. Q2 and 6M 2019 presented based on IFRS 16 full retrospective application.

21

44.2

42.3

40.0

50.0

45.0

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 6M(WA)

2019 2018

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2019

66.8 65.8 65.2 64.5 64.9 64.1 - - - - - - USD/RUB

60.0 64.4 67.0 71.6 70.3 63.0 - - - - - - Brent (USD)

• 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 (VAT)3 +

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

• Increasing average fuel price per tonne.

Aeroflot Airline:

• Q2 2019: 44.5 thousand RUB (-0.4% y-o-y).

• 6M 2019: 44.2 thousand RUB (+4.5% y-o-y).

• Aeroflot Group:

• Q2 2019: 44.9 thousand RUB (+0.1% y-o-y).

• 6M 2019: 44.6 thousand RUB (+4.5% y-o-y).

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

• Oil price and RUB fluctuations led to upward pressure on jet fuel price in 6M 2019.

Fuel Consumption per ASKAeroflot Airline Jet Fuel Price

(gr/ASK)(thousand RUB per tonne of jet fuel)

1

Source: Bloomberg, Company data1 Weighted average price for 6M

Comments

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

(0.6)%

12%8%

11%

Fuel Cost Management

8%

(7)%

22.5 22.3

6M 2018 6M 2019

22

59,014

29,815 3,165

2,006

10,631 (6,746)

(11,971)

(3,340)(11,433)

(282) (2,948)(711) 1,095

68,296

Restated

EBITDA 6M

2018

Volume Pricing Other FX benefit on

revenue

FX drag on

costs

Fuel* Staff* Aircraft and

PAX*

Leases* Maintenance* Admin & Sales

& Marketing*

Other OPEX* EBITDA 6M

2019

EBITDA Evolution

(RUB mln)

* Excluding currency impact

** Restated EBITDA presented based on IFRS 16 full retrospective application. 6M 2019 EBITDA presented based on IFRS 16 full retrospective application.

• Positive FX impact was observed on revenue side on the back of weakening RUB, which outpaced pressure on

operating costs.

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

fuel price and aircraft and passenger servicing costs.

Net volume and price effect

∑=(29,590) RUB mln

Total effect on revenue

∑=45,618 RUB mlnTotal effect on costs

∑=(36,336) RUB mln

Net volume and price effect

∑=34,987 RUB mlnNet FX effect

∑=3,885 RUB mln

****

23

Pobeda Financial Results

Increasing PAX Traffic RASK dynamics

Increasing ASK CASK dynamics

2.28 2.42

6M 2018 6M 2019

3.2

4.6

6M 2018 6M 2019

Million passengers RUB

Pobeda Statement of Profit and Loss (Standalone)

2.272.45

6M 2018 6M 2019

PAX up by 44.7% in 6M 2019 RASK up by 6.5% in 6M 2019

ASK up by 46.7% in 6M 2019 CASK up by 7.9% in 6M 2019

Q2 2018

restated2 Q2 20192 Change RUB mln6M 2018

restated2 6M 20192Change

8,657 13,108 51.4% Revenue 13,736 21,459 56.2%

7,688 11,717 52.4%Operating

Expenses13,679 21,655 58.3%

968 1,391 43.7%Operating

Income / (Loss)56 (196) n/a

(1,228) 371 n/aFinance

Income/expenses

(net)3

(1,318) 1,644 n/a

(143) 1,796 n/aNet Income /

(Loss)(984) 1,503 n/a

1,706 3,022 77.1% EBITDA 1,296 2,668 >2x

19.7% 23.1% 3.4 p.p. EBITDA margin 9.4% 12.4% 3.0 p.p.

Note: based on managerial accounts transformed under IFRS principles1 Calculation based on Total Revenue of the Company2 Restated financials presented based on IFRS 16 full retrospective application. Q2 and 6M 2019 presented based on IFRS 16 full retrospective application.3 Including net FX gain from lease liabilities revaluation in the amount of 2.9 bn RUB in 6M 2019; eliminated in consolidated financials due to hedging of FX-denominated liabilities with FX-

denominated revenues (effectively non-cash income).

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

in 6M 2019.

Billion ASK RUB

1

6.0

8.9

6M 2018 6M 2019

24

Leverage and Liquidity

RUB mln 31-Dec-2018 30-Jun-2019 Change

Borrowings 3,486 3,359 (3.6)%

Lease Liabilities 655,9312 596,084 (9.1)%

Pension Liabilities 908 916 0.9%

Total Debt 660,325 600,359 (9.1)%

Cash and Short Term

Investments30,148 48,031 59.3%

Net Debt 630,177 552,328 (12.4)%

• Total debt decreased by 9.1% on the back of lower finance lease liabilities while Net Debt decreased by 12.4%.

• Cash position of RUB 48.0 billion and undrawn credit lines of RUB 63.5 billion.

1 Based on financial data under IFRS 16; 30-Jun-2019 exchange rate - 63.08 RUB per USD , 31-Dec-2018 exchange rate - 69.47 RUB per USD.2 Lease liabilities updated versus previously reported figure of 661,182 million RUB due to refinement of judgments & estimates. Net debt / EBITDA adjusted due to amendment of Lease liabilities in ratio numerator.

Debt Profile1 Net Debt / EBITDA (management accounting)

Borrowings breakdown by currency

Source: management accounting. Q1 and 6M 2019 EBITDA used in the calculation is based on data under IFRS 16; 2018 data is based on previously reported EBITDAR (pre-IFRS 16).

5.14.5

3.8

31-Dec-2018 31-Mar-2019 30-Jun-2019

2,931

428

RUB USD

2

25

Adoption of IFRS 16 – Lease Liabilities Revaluation

• Hedge accounting is applied to finance lease liabilities from 30-Sep-14, to operating leaseliabilities – from 1-Jan-2019.

• Prospective introduction of hedge accounting for operating leases from 2019 explains FX lossesin restated figures for 2018.

• In 6M 2018 RUB devaluation of 9% vs USD since the beginning of the year resulted in 28 billionRUB paper loss on FX.

million RUB6M 2018

reported16M 2018

restated2 Difference

EBITDA 6,622 59,014 + 52,392

D&A and Customs Duties 6,901 41,561 + 34,660

EBIT (Operating Profit) (279) 17,453 + 17,732

Net Loss (5,228) (30,379) - 25,151

Loss on FX (Operating Lease

A/с Liabilities Revaluation)

After Tax

(27,498)

Adjusted Net Loss (5,228) (2,881) + 2,347

Finance Lease

(IAS 17)

RUB/USD

Effect on Profit & Loss Exchange rate dynamics

1 Reported financial results represent 6M 2018 data reported in August 2018.2 Restated financial results presented based on IFRS 16 full retrospective application.

55

57

59

61

63

65

67

69

Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18

+9.0% (31-Dec-17 – 30-Jun-18)

393,090

million RUB

Lease Liabilities (1-Jan-18)

Operating Lease

(IFRS 16)

Total Lease

Liabilities

100,688

million RUB

493,778

million RUB

Hedge accounting

applied from

30-Sep-14

Hedge accounting

not applied for 2018

26

1. Market Update and Operating Results

2. Network and Schedule Overview

3. Fleet Overview

4. Financial Performance

5. Appendix

27

46.3 52.6

56.4 62.6

68.8

2014 2015 2016 2017 2018

103.1 97.9 101.4 102.3 110.0

2014 2015 2016 2017 2018

46.3 52.6 56.4 62.6 68.8

65.5 54.7 46.461.1

68.1

111.8 107.3 102.8

123.7137.0

0.0

50.0

100.0

150.0

2014 2015 2016 2017 2018Domestic Routes International Routes

0.31

1.78

0.50 0.34 0.36 0.35

3.73

2.50

1.13 0.69

0.46 0.46

UK USA Turkey Russia China Brazil

… from airlines on domestic routesRailways facing increasing competition…

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

Sources: FAVT, Aeroflot estimates

Total CAGR 5.2%

International – 1.0% | Domestic – 10.4%

Despite fast growth of the recent years,Russian airline industry still haspromising growth prospects

ChangeFY17-18

11.5%

10.0%

(6.9)% 3.6%

10.9%

17.9%

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

(2) Airline O&D per capita per year, as of 2018

Sources: Oxford Economics, Aeroflot estimates

0.31

Domestic PAX per capita

1.78

0.50 0.34

x.xx

(5.0)%

13.6%

10.7%

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

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

location.

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

0.8%

7.3%

Long-distance rail routes facedvolatile passenger traffic dynamics inthe recent years and lost over10 mln PAX over a decade

Domestic air traffic grew at a much higherpace than other means of transportation

0.36 0.35

7.9%

10.0%

Russian Air Transportation Market: Room for Growth

28

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

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

• In 2019 market continues to grow on the back of higher demand in both international and domestic segments.

• Capacity additions are mostly carried out by Russian carriers with foreign airlines cutting their exposure

to Russian market in Q2 2019.

Source: SRS for foreign carriers, TCH for domestic carriers, Company calculations.Source: TCH, Company calculations

Total market

Market Return to Growth

30.2 %

18.6 %

11.0 %

0.6 %

(14.8)%

9.0%7.5%

11.9%13.8% 14.4%

Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019

Foreign carriers Russian carriers

14.4 %

7.9 %

10.9 %10.6 %

9.1 %

9.9%

9.1%

10.5%

9.4%

7.2%

12.2% 8.5% 10.7% 10.0% 8.2%

Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019

International Domestic

29

Operating Data – Q2 & 6M 2019

Indicator Unit

Aeroflot airline Aeroflot Group

Q2

2018

Q2

2019Y-o-Y

6M

2018

6M

2019Y-o-Y

Q2

2018

Q2

2019Y-o-Y

6M

2018

6M

2019Y-o-Y

Passenger Traffic th PAX 8,829 9,343 5.8% 16,223 17,796 9.7% 13,871 15,431 11.2% 24,856 28,195 13.4%

International Routes th PAX 4,452 4,938 10.9% 8,351 9,318 11.6% 6,171 6,952 12.6% 11,059 12,683 14.7%

Domestic Routes th PAX 4,377 4,405 0.6% 7,872 8,477 7.7% 7,699 8,479 10.1% 13,797 15,513 12.4%

Passenger Turnover mn pkm 23,951 25,534 6.6% 44,926 48,820 8.7% 35,244 39,383 11.7% 63,987 72,925 14.0%

International Routes mn pkm 15,427 17,471 13.2% 29,752 33,396 12.2% 20,364 22,966 12.8% 37,932 43,531 14.8%

Domestic Routes mn pkm 8,524 8,064 (5.4%) 15,175 15,424 1.6% 14,880 16,417 10.3% 26,055 29,393 12.8%

Passenger Capacity mn ASK 30,206 32,472 7.5% 57,625 63,188 9.7% 43,358 48,842 12.6% 79,982 91,885 14.9%

International Routes mn ASK 19,906 22,662 13.8% 38,818 43,725 12.6% 25,457 29,024 14.0% 47,961 55,571 15.9%

Domestic Routes mn ASK 10,300 9,810 (4.8%) 18,807 19,463 3.5% 17,901 19,818 10.7% 32,020 36,314 13.4%

Passenger Load Factor % 79.3% 78.6% (0.7) p.p. 78.0% 77.3% (0.7) p.p. 81.3% 80.6% (0.7) p.p. 80.0% 79.4% (0.6) p.p.

International Routes % 77.5% 77.1% (0.4) p.p. 76.6% 76.4% (0.3) p.p. 80.0% 79.1% (0.9) p.p. 79.1% 78.3% (0.8) p.p.

Domestic Routes % 82.8% 82.2% (0.6) p.p. 80.7% 79.2% (1.4) p.p. 83.1% 82.8% (0.3) p.p. 81.4% 80.9% (0.4) p.p.

Tonne-Kilometres mn tkm 2,410 2,547 5.7% 4,522 4,849 7.2% 3,482 3,866 11.0% 6,340 7,154 12.8%

International Routes mn tkm 1,566 1,761 12.4% 3,018 3,343 10.8% 2,023 2,271 12.3% 3,775 4,291 13.7%

Domestic Routes mn tkm 843 787 (6.7%) 1,504 1,506 0.1% 1,460 1,595 9.3% 2,565 2,863 11.6%

Revenue Flights flights 67,149 72,427 7.9% 127,381 142,563 11.9% 102,477 112,826 10.1% 191,013 215,284 12.7%

International Routes flights 32,758 35,913 9.6% 63,017 70,104 11.2% 43,070 47,827 11.0% 79,939 91,053 13.9%

Domestic Routes flights 34,391 36,514 6.2% 64,364 72,459 12.6% 59,407 64,999 9.4% 111,074 124,231 11.8%

Flight Hours hours 190,834 208,037 9.0% 365,411 410,164 12.2% 279,971 310,389 10.9% 521,923 593,926 13.8%

30

Indicator UnitRossiya Airline Pobeda Airline Aurora Airline

6M 2019 Y-o-Y 6M 2019 Y-o-Y 6M 2019 Y-o-Y

Passenger Traffic th PAX 5,091 7.2% 4,567 44.7% 742 2.3%

International Routes th PAX 2,026 10.4% 1,136 64.6% 202 10.1%

Domestic Routes th PAX 3,065 5.1% 3,430 39.1% 541 (0.4%)

Passenger Turnover mn pkm 14,853 20.6% 8,196 45.3% 1,057 (4.1%)

International Routes mn pkm 7,384 14.6% 2,470 67.9% 282 5.5%

Domestic Routes mn pkm 7,468 27.1% 5,726 37.3% 775 (7.1%)

Passenger Capacity mn ASK 18,237 23.6% 8,856 46.7% 1,604 2.8%

International Routes mn ASK 8,611 20.1% 2,783 76.0% 452 16.0%

Domestic Routes mn ASK 9,626 26.9% 6,075 36.3% 1,152 (1.6%)

Passenger Load Factor % 81.4% (2.0) p.p. 92.5% (0.9) p.p. 65.9% (4.7) p.p.

International Routes % 85.8% (4.1) p.p. 88.8% (4.3) p.p. 62.3% (6.2) p.p.

Domestic Routes % 77.6% (0.1) p.p. 94.3% 0.7 p.p. 67.3% (4.0) p.p.

Flight Hours hours 99,053 7.8% 62,809 46.8% 21,901 0.4%

Key Operating Data of Subsidiary Airlines – 6M 2019

31

• Strong operating performance on scheduled routes supported by route network development.

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

Americas Russia CIS

Europe Middle East Asia

Performance of North and Central Americanmarket was influenced by reduction of capacity toJFK (two daily flights instead of three for Winterseason) as well as some other destinations.

Capacity have been increased to key domesticmarkets as well as smaller regional cities.Additional contribution from new services toCaucasus, Ulyanovsk and Izhevsk.

Positive contribution to regions’ KPIs comes fromincreased frequencies of Aeroflot airline andstronger demand to local destinations.

European markets performance benefited fromlaunching of additional frequencies as well asnew flights to Slovenia, Dublin, Naples, Verona,Marseille and Palma.

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

More traffic on key scheduled destinations(Beijing, Tokyo) as well as popular leisuredestinations (Phuket, Male) amid increase infrequencies supportive for overall performance ofthe region.

6M 2019 Operating Data by Region (Scheduled Routes)

(5.1)% (4.9)% (11.7)%

5.9 p.p.

Passengerscarried

RPK ASK PLF

12.2 % 12.4 % 13.3 %

(0.6) p.p.Passengers

carriedRPK ASK PLF

14.1 % 17.1 %18.4 %

(0.9) p.p.

Passengerscarried

RPK ASK PLF

17.1 % 17.8 % 19.0 %

(0.8) p.p.

Passengerscarried

RPK ASK PLF

22.8 %26.7 % 24.8 %

1.1 p.p.

Passengerscarried

RPK ASK PLF

18.4 %

24.3 % 28.3 %

(2.5) p.p.

Passengerscarried

RPK ASK PLF

32

150 165189

224 253 250

4.14.4 4.2 4.1 4.2

4,6

2014 2015 2016 2017 2018 6/30/2019

Aircraft Average Age

251 247289

325366 365

7.06.4 6.5 6.2 6.2

6,5

2014 2015 2016 2017 2018 6/30/2019

Aircraft Average Age

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

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

Aeroflot Group Fleet in Operation 1

Aeroflot Airline Fleet in Operation 1

Average Age of the Fleet 2

1 Excludes plane out of operation 2 Average Fleet Age of Selected Airlines with Active Fleet of 100+ Aircraft according to FlightGlobal data (as of July 2019, data by legal entity)

4.6

5.1

5.3

5.6

5.6

5.6

5.8

5.9

6.1

6.1

6.2

6.3

6.4

6.4

6.7

6.7

7.0

7.1

7.1

7.2

7.3

Hainan Airlines

Wizz Air

Etihad Airways

IndiGo

Sichuan Airlines

Spirit Airlines

Qatar Airways

Shandong Airlines

Xiamen Airlines

Azul

Saudia

China Eastern Airlines

Emirates Airline

Avianca

Vueling Airlines

Singapore Airlines

EasyJet Europe

Shenzhen Airlines

China Southern Airlines

Air China

Aeroflot Group Fleet Evolution

33

Traffic Revenue Analysis

Q2 2018 Q2 2019 Y-o-Y Region 6M 20186M 2019 Y-o-Y6M 2019, % of

sch. revenue

50,832 59,289 16.6% Russia 84,791 102,422 20.8% 40.2%

35,958 38,763 7.8% Europe 61,310 68,242 11.3% 26.8%

17,127 20,021 16.9% Asia 34,592 43,626 26.1% 17.1%

6,289 7,320 16.4% CIS 10,753 12,881 19.8% 5.1%

8,115 8,208 1.1%North and Central

America13,280 13,539 2.0% 5.3%

6,541 7,728 18.1%Middle East and

Africa11,243 14,011 24.6% 5.5%

124,862 141,329 13.2% Total 215,969 254,721 17.9% 100.0%

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

6M 2019

6M 20192

Traffic Revenue Breakdown by Type

Scheduled Traffic Revenue by POS

Revenue from Scheduled Passengers (RUB mln)1

• In 6M 2019 revenue from scheduled passengers grew by 17.9% mainly driven by revenue growth on Russian,

European and Asian markets.

Total Passenger Revenue (Scheduled + Charter, RUB mln)

Q2 2018 Q2 2019 Y-o-Y Segment 6M 20186M 2019 Y-o-Y6M 2019, % of

revenue

52,750 61,175 16.0% Domestic 87,529 105,522 20.6% 38.8%

82,706 91,280 10.4% International 144,823 166,189 14.8% 61.2%

135,456 152,455 12.5% Total 232,352 271,711 16.9% 100.0%

Sheduled Passenger Flights

90.8%

Charter Passenger Flights 6.1%

Cargo 3.1%

Sales abroad29.4%

Online34.3%

Call center and own branches

3.4%

Sales in Russia32.9%

34

3.55

4.063.84

3.733.97 3.87

Domestic International Total

3.36

3.823.633.59

3.823.73

Domestic International Total

2.95

3.253.123.09 3.14 3.12

Domestic International Total

2.73

3.022.912.91

2.99 2.96

Domestic International Total

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

• Competitive positioning, adjustment of fuel surcharges and changing mix of operations at subsidiaries’ level due to

rapid expansion of LCC as well as high base of previous year affected RUB yields in 6M 2019.

% Y-o-Y increase 2018 2019

Q2 Yield (Scheduled + Charter PAX Revenue / RPK)

RUB

Q2 RASK (Scheduled + Charter PAX Revenue / RPK)

RUB

0.7% 4.8% (0.1)%(2.1)% (3.2)%

5.1%

6M Yield (Scheduled + Charter PAX Revenue / RPK)

RUB

6M RASK (Scheduled + Charter PAX Revenue / RPK)

RUB

2.6% 6.3%1.8%0.0% (1.0)%

6.9%

Aeroflot Group Blended Flights Revenue Units

RUB RUB

35• Improvement in labour productivity has resulted in increase of key performance indicators in 6M 2019.

• Aeroflot Group headcount increased by 1.3% vs. June 30, 2018.

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

9.9%

(million RUB per employee, annualized to 30.06.2019) (passengers per employee, annualized to 30.06.2019)

Aeroflot Group Headcount by Category

13.2%

1 Aeroflot Group headcount table excludes Aeroflot Aviation School headcount amounting to 196 employees as at 30.06.2018 and 224 employees as at 30.06.2019.

30-Jun-2018 30-Jun-2019 %

Cabin crew 11,821 12,751 7.9 %

Airport services 7,163 5,447 (24.0)%

Technical maintenance and repair 5,068 5,444 7.4 %

Flight crew 3,981 4,434 11.4 %

Tickets and services sales, advertising 1,918 1,966 2.5 %

Other airline personnel (inc. airlines’ head office) 5,582 5,378 (3.7)%

Other non-airline subsidiaries’ personnel 4,968 5,625 13.2 %

Total1 40,501 41,045 1.3 %

Headcount Overview

Flight crew10.8%

Cabin crew31.1%

Technical maintenance and

repair13.3%

Tickets and services sales, advertising

4.8%

Airport services13.3%

Other airline personnel

13.1%

Other non-airline personnel

13.7%

14.8

16.7

30.06.2018 (LTM) 30.06.2019 (LTM)

1,514

1,664

30.06.2018 (LTM) 30.06.2019 (LTM)

36

79,022 88,506

(10,466)

53,305

26,843 275 (5,369)

64,588

32,185

96,773

(9,436)3,764 (1,447) (9,649)

(983)

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

Purchase ofPPE &

CapitalizedExpenses

ProceedsFrom Sale of

PPE

DepositPlacementand Return

Net Pre-delivery

Payments forAircraft

Net LeasingDeposits for

a/c inOperatingLease and

Other

Free CashFlow 6M

2019

RestatedFree CashFlow 6M

2018

Operating and Free Cash Flows

• Strong Operating and Free Cash Flow generation in 6M 2019 notwithstanding the macro challenges.

(RUB mln)

Million RUB 6M 2019

Other adjustments before working capital changes, incl.

Change in provisions (1,990)

Effect from revenue hedging (finance lease hedge accounting) 1,337

Interest income (2,110)

Other (2,606)

* Restated data

Million RUB 6M 2019

Working capital changes and income tax, incl.

Change in accounts receivable and prepayments (392)

Change in accounts payable and accrued liabilities 32,244

Change in expendable spare parts and inventories (1,345)

Change in tax and restricted cash 1,678

(10.7)%

37

Net Income Evolution

(RUB mln)

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

environment.

• No FX losses related to revaluation of liabilities in 6M 2019 due to hedge accounting in place

resulted in significant improvement of Finance Costs in the respective period and supported the

bottom line.

(30,379)

(8,784)

39,913

5,705 (48,453)

119

27,333 1,647 40 (4,762)

53

Restated NetIncome 6M 2018

Traffic Revenue Other Revenue OperatingExpenses

Finance Income Finance Costs Hedging Result Revaluation ofEquity

Investments andother

Taxation Other Net Income 6M2019

38

4%

96%

5%

12%

83%

Loans and credit linesFinancial leaseOperating lease

• Higher Finance costs due to larger volume of liabilities related to leased

objects reflected in statement of financial position.

Indicator Impact Explanation

Operating incomeDue to redistribution of Operating lease costs

to Finance costs.

EBITDA

Due to redistribution of Lease and

Maintenance expenses to D&A and Finance

costs.

Net income No significant impact.

$$$

$$$

$$$

$$$

$$$

$$$

$$$

$$$

$$$

$$$

PnL statement 2018 2019

2018 2019E

Explanation

• Introduction of IFRS 16 standard will lead to an increase in the Group’s debt portfolio,higher Operating income and EBITDA due to redistribution of costs across PnL items.

Operating lease expenses

Maintenance and reserves

Depreciation & amortization (D&A)

Curr. translation differences

Finance costs

• Redistribution of Lease and Maintenance expenses to D&A and Finance costs

due to reflecting aircraft and other leased assets on Company’s books.

• Operating lease expense line will still hold objects not influenced by IFRS 16.

Significant changes are expected in Operating lease and Maintenance lines of PnL

• D&A increase due to higher volume of assets reflected in statement of

financial position, growth in maintenance capitalization.

• Volatility in currency translation differences will be mostly “regulated” by hedge

accounting.

Debt portfolio, % Impact on Key financial indicators

Introduction of IFRS 16

Executive Board

Personnel and Remuneration

Committee

(5 members)

General Meeting of Shareholders

Board of Directors

Audit Committee

(3 members)

Strategy Committee

(10 members)

Corporate Governance

NameAudit

Committee

Personnel and

Remuneration

Committee

Strategy

Committee

Evgeny Ditrich Chairman

Mikhail Poluboyarinov Deputy Chairman

Vitaly Saveliev

Alexander Galushka Member Member

Igor Kamenskoy Member Member Chairman

Maksim Liksutov

Dmitry Peskov Member Member

Vasily Sidorov Chairman Member Member

Yuri Slyusar Member

Maxim Sokolov Member Chairman Member

Sergey Chemezov

Board of Directors

The Board of Directors is currently composed of 11

members. The Board’s composition is well balanced

from members’ background perspective.

Incorporated in Russia, PJSC Aeroflot is subject to

Russian corporate governance regulations and follows

Russian Corporate Governance Code

Independent director according to the Russian Corporate Governance Code 39

Board of Directors

Airlines Ancillary Companies

PJSC Aeroflot

JSC Rossiya Airlines 75%-1 sh.

LLC Pobeda Airlines 100%

JSC Aurora Airlines 51%

CJSC Aeromar

On-board sales/catering51%

LLC Aeroflot-Finance

Financial services100%

JSC Sherotel

Hotel services100%

Aeroflot Aviation School

Education services100%

Note: The Group structure as at 30 June 2019; Aeroflot Group consolidates all entities: PJSC Aeroflot and all subsidiaries.

PJSC Aeroflot also owns 100% of JSC Donavia (via JSC Rossiya; non-operating entity, in liquidation), 45.0% of JSC AeroMASh-AB (Aviation security), 2.43% of JSC Sheremetyevo International Airport (base airport), 3.85% of PJSC Transport Clearing House (mutual settlements between agencies and airlines). JSC Orenair was liquidated in July 2019.

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

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

A-Technics

Maintenance 100%

40

Aeroflot Group Structure

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

E-mail: ir@aeroflot.ru

Website: www.aeroflot.ru

Investor Relations Contacts