Q2 & 6M 2020 IFRS RESULTS · 2020. 9. 15. · A E R O F L O T G R O U P Q2 & 6M 2020 IFRS RESULTS...
Transcript of Q2 & 6M 2020 IFRS RESULTS · 2020. 9. 15. · A E R O F L O T G R O U P Q2 & 6M 2020 IFRS RESULTS...
A E R O F L O T G R O U PQ2 & 6M 2020 IFRS RESULTS
31 August 2020
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 2020 Highlights
Note: immaterial deviations throughout the presentation are explained by rounding
• In 6M 2020 Aeroflot Group’s performance was seriously affected by COVID-19 amid significant
pressure on demand in the domestic segment of the market and the complete closure of the
international segment from the end of March with respective implications for financials.
PAX Yield Revenue External Factors
12.9 mln
- 54.2 %
28.2 mln
- 52.0 %
311.4
149.4
- 2.5 %
3.79
3.69
COVID-19
6M 2019 6M 2020 6M 2019 6M 2020 6M 2019 6M 2020
Million PAX RUB / RPK Billion RUB
4
1. Market Update and Operating Results
2. Strategy 2028
3. Network and Schedule Overview
4. Fleet Overview
5. Financial Performance
6. Appendix
5
12.9
4.8
2.0 1.92.9
6.1
AeroflotGroup
S7 Group Ural Airlines UTair Group ForeignCarriers
Others33.2
19.1
33.0
11.6
66.2
30.7
6M 2019 6M 2020
18.4 4.5
19.7
0.1
38.1
4.6
Q2 2019 Q2 2020
International Routes
Domestic Routes
• The market’s and Aeroflot Group’s performance remained under significant pressure in Q2 and 6M 2020 amid
adjustment in demand in the face of COVID-19 in the first quarter of 2020, which extended into following quarters.
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)
Key Market Players
Market Shares
(53.6)%
-15.3
Change in PAX million
-1.9-5.6
Foreign Carriers Others
6M 2019 6M 2020
Source: TCH, Aeroflot Group. Figures include foreign carriers’ traffic.
(87.9)%
15.5
8.4
12.7
4.6
28.2
12.9
6M 2019 6M 2020
8.5
1.7
7.0
0.05
15.4
1.7
Q2 2019 Q2 2020
(54.2)%
(88.8)%
-3.4
-2.2
-7.1
42.6%
12.3%6.4%
5.8%
12.8%
20.0%
42.1%
15.6%6.7%
6.3%
9.4%
19.9%
6
• The Russian market was substantially hit by COVID in April and May 2020 with recovery starting from June and
extending into Q3.
• Load factor shows positive progression as airlines cautiously add capacity below demand recovery levels.
Source: TCH, Federal Air Transport Agency, Aeroflot Group calculationsSource: TCH, Federal Air Transport Agency, Aeroflot Group calculations
Material Impact of COVID-19 Starts from March
8.9
8.0
6.4
0.7 0.9
2.8
6.8
Jan Feb Mar Apr May Jun Jul
(92.1)% (91.3)% (77.4)% (52.4)%
30.5
26.7
23.5
4.0 4.4
9.5
17.6
Jan Feb Mar Apr May Jun Jul
(86.0)% (86.6)% (73.8)% (54.3)%
39%
58%
Monthly PAX Traffic (Russian Carriers) Capacity (Russian Carriers) and PLF
44%
Million PAX Billion ASK, PLF in %
(28.1)%6.6% 6.4% 10.0% 8.7% (17.6)%
79%
69%
79%75%
7
Flights reopened starting from
1 August with following countries:
• United Kingdom
• Turkey
• Tanzania
• Switzerland
• Domestic segment showing signs of recovery from June as travelling restrictions within Russia are gradually lifted
while international segment opening only a handful of destinations from August.
PAX Traffic of Russian Airports
Domestic Segment Shows Gradual Recovery
Q3 – International Segment
Q3 – Domestic Segment
Source: Russian international airports association (MAA), Federal Air Transport Agency
PAX dynamics based on 33 key Russian airports
Steady recovery in domestic
segment continuing in July and
August
7% 7%
(25)%
(91)% (90)%
(74)%
(45)%
-100%
-80%
-60%
-40%
-20%
0%
20%
Jan Feb Mar Apr May Jun Jul
Total Domestic International
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Aeroflot Group Performance Across Different Brands
0.7
0.4
60.4%
• 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
Premium
17.8
7.87.8
-56.1%
5.1
1.8
4.62.9
-64.1%
-35.8%
-51.6%
6M 2019 6M 2020
14.1%
22.7%
2.8%
1.8
2.9
0.4
• Point-to-point carriage
• Focus on domestic
segment and underserved
international routes
• Airline for communities in the
Russian Far East offering
flights
− between large cities
− to remote cities
• Material decline in demand and closed borders have resulted in 6M traffic decline for key carriers of the Group,
including Pobeda suspending operations for April and May. In Q3 the Group is observing the gradual recovery of
the domestic segment.
Source: Aeroflot Group1 PAX contribution as of 6M 2020. Absolute number of passengers in million in green circle
6M 2019 6M 2020
6M 2019 6M 2020
6M 2019 6M 2020
Brand Business Model 6M 2020 PAX Contribution1 and Dynamics July 2020
Mid-price
Low Cost
Regional
-72% PAX
-74% ASK
-49% PAX
-42% ASK
+2% PAX
-3% ASK
-62% PAX
-48% ASK
9
1,0395,797
Traffic, th PAX Revenue flights,cycles
94.4%
PLF, %
Pobeda Airline: Timely Value Proposition
Operations restarted in June 2020after suspension in April and May amid demand decrease
Operating Indicators of July 2020 (Domestic)
62
Krasnodar
Rostov
NazranMakhachkala
Astrakhan
Volgograd
KazanPerm
Chelyabinsk
Ekaterinburg
Surgut
Novosibirsk
Bergamo
Bratislava
Cologne
Memmingen
Girona
Samara
Cheboksary
Larnaca
Tivat
Saint Petersburg14
Nizhnekamsk
Moscow
VladikavkazTbilisi
Krasnoyarsk
Pisa
Base cities with >10 routes served from city
(number of routes in circle)
Baden-Baden
Ulan-Ude Karlovy VaryLeipzig
Venice
Kaliningrad
Eindhoven
Helsinki
Innsbruck
Kemerovo
Salzburg
Berlin
Rome
Kirov
Min.Vody
Petrozavodsk
Tomsk
XXCities with <10 routes served from city
Cities the airline operates flights to
Anapa
AntalyaBodrum
Bari
Cagliari
CataniaDalaman
Gelendzhik SochiGenova
Gazipaşa
Istanbul Gyumri
Omsk
Ostende
Palermo
Riga
Rimini
TyumenUlyanovsk
Varna
Batumi
Magnitogorsk
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Total PAX dynamics in 2020Overview
30 B737NG aircraftwith single class cabin (189 seats)
2.9 mm PAXtransported in 6M 2020 (-35.8% y-o-y)
90.1% PLFLF remained high in 6M 2020 despite ongoing pressure
• Pobeda has restarted operations in June 2020 recovering significant volume of traffic in domestic segment
amid strong load factor and is uniquely positioned to bring back more capacity leveraging its value
proposition appealing to cost conscious passengers.
Source: Aeroflot Group
Beginning of 2020 route network
Domestic traffic already recovered to 2019 levels
11 p.p. RPK mix shiftfrom international to domestic in 6M 2020 y-o-y
0.90.8
0.7
0.0 0.0
0.4
1.0
Jan Feb Mar Apr May Jun Jul
(99.9)% (99.9)% (51.5)% 1.6%33.9% 31.7% 3.0%
mn PAX, change y-o-y
27.1% 30.4% (3.2) p.p.
10
1. Market Update and Operating Results
2. Strategy 2028
3. Network and Schedule Overview
4. Fleet Overview
5. Financial Performance
6. Appendix
11
Aeroflot Group: Now and Then
Key Strategic Goals
Key Goals of the Updated Strategy
Increase of
Aeroflot
Group’s PAX
Accelerated
development
of Pobeda Airline to
improve air travel
affordability and
stimulate demand
Stronger
position of
Aeroflot Airline
in the premium
segment due to
the Group’s
transformation
130PAX
37 35-40
10 55-65
12 20-30
2019 2028
• Optimization of the network according to routes’ yield
• Best-in-class premium quality service
• Supporting high population mobility
• Stimulating demand through more affordable ticket prices
• Operating modern Russian-manufactured aircraft
• Socially important routes, inter-regional network
Premium carrierwith international recognition, developing transit
Low-cost carrier, one of the largest and one of the most cost efficient in the world1
Regional carrier,
routes bypassing Moscow, social function and regional connectivity
PAX (mn)
m
Aeroflot Group updated its long term targets: the Group intends to streamline its value proposition, increase focus
on LCC and further improve Aeroflot Airline’s product.
1 Based on CASK ex.-fuel benchmarking, calculated based on airlines’ data.
12
The Group’s Target Network and Fleet Allocation
Medium-haul flights Long-haul flights
High-yield flights from Moscow
Destinations with high demand
Routes bypassing Moscow + social fares
Selected domestic routes
Key premium international routes
Domestic and international routes
New regional bases
International and domestic routes fromSt. Petersburg
Leisure destinations
Feeder traffic to Aeroflot in Moscow
Affordable domestic flights
All destinations
by 2028
~600 aircraft
Russian-manufactured aircraft
Network Fleet Network Fleet
Transfer of medium-haul aircraft to Pobeda and Rossiya and Aeroflot’s focus on long-haul aircraft will allow to
strengthen specialization of the airlines, improve commonality of the fleet and value proposition. The Group’s
network will be reallocated in accordance with airlines’ business models, while increasing cooperation between
them.
13
Global carrier with a 5-star Skytrax product
Focus on targetmarket segments
Optimized cost structure
• Skytrax 5* product
• Europe – Asia transit
• Key premium international destinations
• High-yield domestic flights
• Only markets with premium product demand
• High load factor and yield of business andeconomy class through withdrawal from low yield
markets
• Fleet of several aircraft types
• Highly efficient aircraft of new generation
• Wide-body aircraft on most destinations
Aeroflot in 2028
Aeroflot Airline’s fleet development strategy
Long-haul flights Medium-haul flights
Aeroflot Airline: 2028 Vision
Destinations with low premium product demand will be served by other carriers of the Group
Growing market with
premium product demand
Launch of new routes
Transfer of low-yield destinations to Pobeda
Focus on destinations with high demand for
business class (e.g. London, Geneva, Zurich)
and long-haul flights (e.g. Lisbon, Madrid)
2028
Decrease in aircraft types by transferring of Russian-
manufactured aircraft to Rossiya and B737-800 to Pobeda
Development of narrow-body aircraft fleet by adding
modern aircraft with higher capacity
Further wide-body aircraft fleet development
By 2028, Aeroflot Airline’s fleet will consist of only several aircraft types resulting in significant efficiency improvement
By 2028, Aeroflot will increase efficiency and further enhance its premium level of service via streamlining its
value proposition
The network development (Sheremetyevo Airport)
14
Pobeda in 2028
Pobeda’s fleet development strategyPobeda has become one of the most efficient low-cost carriers within only 5 years
Pobeda Airline: 2028 Vision
Pobeda is the most efficient low-cost carrier in the world based on selected performance indicators
Using modern aircraft with higher capacity will allow Pobeda to further decrease operating costs
Notes: (1) Flights in 3Q 2019, according to Boeing; (2) Operating profit margin in 2019, according to Skift; (3) Calculated based on airlines’ public data as of 2019; (4) In 2019, among non-charter carriers on the Russian market, based on public statistics
16.1 hours Global leader by aircraft utilization(1)
19 % Top-3 among global airlines by profitability(2)
25 min The fastest aircraft turnaround in Russia
6 700PAX per employee
The best productivity on the Russian market(3)
94 % The highest load factor(4)
Transfer of Boeing 737-800from the Group’s airlines to Pobeda
Further fleet development by using modern aircraft with higher capacity
Balanced growth of fleet size
1
2
3
c.30% market share in Russiawith further growth potential
More capacious aircraft of new generations will increase efficiency and decrease costs
Average ticket prices reduction by 30% on the domestic market for economy class
(not adjusted for inflation)
Affordable air travelEfficient fleetHigh market share
By 2028, Pobeda will significantly increase in size and ensure travel affordability
for the Russian population via stimulating traffic and volumes backed by its operational and financial efficiency
15
The largest carrier in Russia on routes
bypassing Moscow and Saint Petersburg
Leading operator of
Russian-manufactured aircraft
Fulfilling Aeroflot Group’s
social mission
Servicing inter-regional flights
from new regional bases
Creating of a system of linear stations and hangar
facilities for servicing Russian-manufactured aircraft
(also in regions)
Servicing socially significant routes
Rossiya in 2028
The key goals of Rossiya Airline strategy
Rossiya Airline: 2028 Vision
Fulfilling social functions of the Group
Establishing a center of competence for Russian-manufactured aircraft development
Network development bypassing Moscow
Feeder traffic for Aeroflot’s flights to Moscow
Rossiya will focus on the efficient development of flights bypassing Moscow as well as fulfilling the Group's
social mission.
16
1. Market Update and Operating Results
2. Strategy 2028
3. Network and Schedule Overview
4. Fleet Overview
5. Financial Performance
6. Appendix
17
2.88
3.032.97
2.30
2.69
2.49
Domestic International Total
3.58
3.94
3.79
3.49
3.90
3.69
Domestic International Total
• Positive pricing trends of Q1 2020 were reversed in Q2 on the back of restrictions on movement both internationally
and domestically, which had significant impact on 6M yields.
• RASK was under pressure due to adjustment in PLF on the back of COVID-related demand pressure.
Source: Aeroflot GroupNote: Data presented based on management accounts, scheduled flights revenue is used for calculations
RUB RUB
3.2%0.7% 1.1%
Aeroflot Group Scheduled Flights Revenue Units
6M Yield (PAX Revenue / RPK) 6M RASK (PAX Revenue / ASK)
RUB / RPK RUB / ASK
% Y-o-Y increase 2019 2020 % Y-o-Y increase 2019 2020
(20.2)%
(16.1)%(11.2)%
(2.5)%
(2.5)%
(1.1)%
18
Aeroflot routes
Rossiya routes
Aurora routes
• Starting from June Aeroflot Group gradually restores operating volumes in domestic segment of the market.
• In August international flights to UK, Turkey and Switzerland were opened marking the first step of international
segment relaunch.
Source: Aeroflot Group
Note: 1 Scheduled flights of Aeroflot Group in 6M 2020 vs. 6M 2019 (excluding Pobeda LCC)
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
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 Adjustments
2020 Domestic Scheduled Network (flights per day, av.)# of Flights Evolution by Region, 6M 2020 y-o-y1
Beginning of 2020 route network
(45.2)%
(61.4)%
(57.4)%
(54.5)%
(55.3)%
(59.1)%
(34.8)%
Total
Middle East & Africa
CIS
North & Central America
Asia-Pacific
Europe
Russia
291
May Jun Jul
187
146
209
90
64
100
28
0
19
• Gradual addition of capacity in domestic segment was aligned with higher demand for flights starting from June.
• Cargo operations proved to be more resilient during the crisis which prompted Aeroflot to deploy wide-body
passenger aircraft for cargo transportation in order to support financial results.
Source: Aeroflot Group
Passenger and Cargo Operating Numbers
ASK
PLF
Total Domestic Cargo
15.0 13.8 12.1
1.6 1.63.9
7.6
2% 4% (20)%(90)%(90)%(78)%(58)%
Jan Feb Mar Apr May Jun Jul
ASK, bn %, y-o-y
6.0 5.5 6.01.5 1.5
3.77.4
6% 6% 5%(76)%(78)%(50)%
(5)%
Jan Feb Mar Apr May Jun Jul
ASK, bn %, y-o-y
75% 74%63%
35%45%
61%79%
(1) p.p.
(3) p.p.
(18) p.p.
(45) p.p.
(32) p.p.
(23) p.p.
(11) p.p.
Jan Feb Mar Apr May Jun Jul
PLF y-o-y change
73% 76%65%
34%44%
62%80%
(3) p.p.
(2) p.p.
(16) p.p.
(47) p.p.
(36) p.p.
(25) p.p.
(14) p.p.
Jan Feb Mar Apr May Jun Jul
PLF y-o-y change
deployed for cargo transportation
Wide-body
aircraft
vs. PAX transportation
Cargo more
resilient
23.425.4
23.7
8.711.9 12.9
17.8
Jan Feb Mar Apr May Jun Jul
thousand tons of cargo and mail
20
1. Market Update and Operating Results
2. Strategy 2028
3. Network and Schedule Overview
4. Fleet Overview
5. Financial Performance
6. Appendix
21• Aeroflot Group continues to intelligently manage capacity additions and develop its fleet taking into account market
trends and opportunities.
Type of
aircraft
6M 2020 Fleet as at
30.06.2020Delivery Phase out
Wide-body (long-haul) 1 (3) 57
A-330 - (3) 18
A-350 1 - 1
B-777 - - 29
B-747 - - 9
Narrow-body (medium-haul) - (2) 236
A-319 - - 30
A-320 - (2) 80
A-321 - - 33
B-737 - - 93
Narrow-body (regional) 6 (1) 67
SSJ-100 5 - 54
DHC-8 1 (1) 10
DHC-6 - - 3
TOTAL 7 (6) 360
Fleet Update
Actual and expected additions 2020 Fleet Plans
2020 deliveries as well as
phase-outs are being
discussed with lessors
Part of the fleet is currently
temporarily grounded
In 6M 2020 Aeroflot Group
operated 360 aircraft vs 365
aircraft in 6M 2019
22
1. Market Update and Operating Results
2. Strategy 2028
3. Network and Schedule Overview
4. Fleet Overview
5. Financial Performance
6. Appendix
23
Financial Highlights: Q2 and 6M 2020
• Financial results of 6M 2020 are impacted by weaker demand due to COVID-19, which was already
reflected in results of Q1.
• Following lifting of restrictions on movement within Russia from June and gradual reopening of
international segment from August we see slow improvement in financial indicators as well.
Q2 2019 Q2 2020 Change Million RUB (where applicable) 6M 2019 6M 2020 Change
15,431 1,731 (88.8)% Passenger Traffic (mln PAX) 28,195 12,927 (54.2)%
173,399 25,458 (85.3)% Revenue 311,440 149,352 (52.0)%
152,456 12,983 (91.5)% PAX Traffic Revenue 271,711 119,591 (56.0)%
152,882 58,421 (61.8)% Operating Costs 296,822 195,471 (34.1)%
20,517 (32,963) n/a Operating Income/(Loss) 14,618 (46,119) n/a
46,963 (1,962) n/a EBITDA 68,296 11,092 (83.8)%
27.1% n/a n/a EBITDA Margin 21.9% 7.4% (14.5) p.p.
6,933 (35,786) n/a Net Income/(Loss) (8,784) (58,270) 6.6x
24
311,440 (140,218)
(11,902)3,550 (13,518)
149,352
6M 2019 ScheduledPassenger
Flights
CharterPassenger
Flights
Cargo OtherRevenue
6M 2020
• Primary driver of revenue decline was scheduled passenger flights segment showing significant declines in every
geographical segment.
• Cargo offered some support to the Group revenue as we increased available capacities in the segment amid global
shortage of available belly cargo opportunities.
Revenue Dynamics Decomposition
Revenue by Key Factors Revenue by Business Segments
Million RUB Million RUB
311,440 (140,705)
(1,903) (2,848) (16,632)149,352
6M 2019 Volume Currency Pricing Other 6M 2020
25
Operating Costs
Q2 2019 Q2 2020Change
y-o-y
Change
ex. FX
Operating Expense
(RUB mln if not stated otherwise)6M 2019 6M 2020
Change
y-o-y
Change
ex. FX
% of OpEx
(6M 2020)
49,008 5,325 (89.1)% (89.8)% Fuel 92,708 43,929 (52.6)% (53.0)% 22.5%
103,874 53,096 (48.9)% (50.0)% Opex (ex. Fuel) 204,114 151,542 (25.8)% (26.5)% 77.5%
32,294 5,493 (83.0)% (84.0)% Aircraft and passenger servicing 61,165 32,937 (46.2)% (46.9)% 16.8%
26,446 31,001 17.2% 17.2% D&A and customs duties 53,678 57,211 6.6% 6.6% 29.3%
22,215 13,496 (39.2)% (39.8)% Staff 44,794 34,620 (22.7)% (23.0)% 17.7%
7,534 4,291 (43.0)% (46.8)% SG&A1 14,203 10,479 (26.2)% (27.0)% 5.4%
7,813 4,244 (45.7)% (49.5)% Maintenance 13,987 13,469 (3.7)% (6.7)% 6.9%
4,079 656 (83.9)% (83.3)% Communication Expenses 9,144 4,432 (51.5)% (53.8)% 2.2%
3,493 (6,085) n/a n/a Other expenses2 7,143 (1,606) n/a n/a (0.8)%
152,882 58,421 (61.8)% (62.7)% Total Opex 296,822 195,471 (34.1)% (34.8)% 100.0%
• In 6M 2020 operating costs were significantly impacted by smaller volume of operations.
1 Includes sales and marketing expenses and administration and general expenses.2 Other expenses include short-term and immaterial lease, reserves accrual and reversal, catering, other income and 7.9 bn RUB government subsidy for lost traffic.
Operating Expenses Breakdown
26
3.23
(0.09) 0.02
0.61
0.23 0.06 0.13 (0.01) (0.11)
4.08
(0.04)
4.04
3.23
CASK 6M 2019 Fuel Aircraft andPassengerServicing
D&A and CD* Staff SG&A Maintenance CommunicationExpenses
OtherExpenses
CASK 6M 2020 FX CASK 6M 2020ex. FX
CASK 6M 2019
Group Unit Costs
• Cost per ASK increased by 26.2% from RUB 3.23 in 6M 2019 to RUB 4.08 in 6M 2020 on the back of significant
decrease in operating expenses which was outpaced by lower capacity amid softer demand.
25.0%(0.9)%26.2%
Capacity: ASK adjustmentUnit Costs Dynamics
Operating Expense per ASK (CASK), RUB 6M 2019 6M 2020 Change
Fuel 1.01 0.92 (9.2)%
CASK (ex. Fuel): 2.22 3.16 42.3%
Aircraft and Passenger Servicing 0.67 0.69 3.2%
D&A and Customs Duties 0.58 1.19 104.3%
Staff 0.49 0.72 48.1%
SG&A 0.15 0.22 41.4%
Maintenance 0.15 0.28 84.6%
Communication expenses 0.10 0.09 (7.1)%
Other Expenses 0.08 (0.03) n/a
Total CASK 3.23 4.08 26.2%
CASK Bridge
(47.8)%
Billion ASK
RUB / ASK
91.9
47.9
6M 2019 6M 2020
27
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)
2020 2019
Fuel Efficiency
• On the back of oil price weakness staring from March 2020 jet fuel prices moved towards more comfortable
levels, which is supportive for the industry in the current environment.
(gramme / ASK)Thousand RUB per tonne of jet fuel
1
Source: Aeroflot Group1 Weighted average price for 6M (2019 and 2020) and 12M (2015-2017).
3.6%
Fuel Cost Management
31.1
33.5
2015-2017 FY weighted averages
Average fuel price per tonne
Aeroflot Airline:
• 6M 2020: 38.4 thousand RUB
(-13.1% y-o-y).
• June 2020: 23.4 thousand RUB
(-47.4% y-o-y).
• July 2020: 27.7 thousand RUB
(-35.5% y-o-y).
Aeroflot Airline Jet Fuel Price
22.3 23.1
6M 2019 6M 2020
28
Pobeda Financial Results
• In 6M 2020 Pobeda’s result was affected by softening demand on the back of COVID-19 spread as
well as suspension of operations for April and May.
PAX Traffic and Other Operating Metrics
RASK
CASK
Pobeda Statement of Profit and Loss (IFRS, standalone)
Q2 2019 Q2 2020 Change Million RUB 6M 2019 6M 2020 Change
13,108 1,527 (88.4)% Revenue 21,459 12,641 (41.1)%
10,650 3,734 (64.9)% Operating Expenses 20,046 14,184 (29.2)%
2,458 (2,207) n/aOperating Income /
(Loss)1,413 (1,543) n/a
18.7% n/a n/a Operating margin 6.6% n/a n/a
1,027 (2,922) n/aAdjusted Net
Income / (Loss)2 (754) (2,430) 3.2х
4,530 7 (99.8)% EBITDA 5,208 2,751 (47.2)%
34.6% 0.5% (34.1) p.p. EBITDA margin 24.3% 21.8% (2.5) p.p.
Note: based on managerial accounts transformed under IFRS principles. Includes 12 aircraftsubleased from Aeroflot.1 Calculation based on Total Revenue of the Company2 Adjusted for (excluding) net FX loss from lease liabilities revaluation in the amount of 6.8 bn RUB
in 6M 2020 (4.9 bn RUB net FX gain in 6M 2019) and net FX gain of 6.4 bn RUB in Q2 2020 (1.4 bn RUB net FX gain in Q2 2019) and the associated deferred tax; FX gain/loss eliminated in consolidated financials due to hedging of FX-denominated liabilities with FX-denominated revenues (non-cash income).
2.42 2.20
6M 2019 6M 2020
4.6
2.9
6M 2019 6M 2020
2.26 2.47
6M 2019 6M 2020
RASK -9%
PAX -36%
ASK -35%
PLF -2.4 p.p
CASK +9%
Million PAX, 6M 2020 dynamics y-o-y
RUB / ASK
RUB / ASK
29
Net Debt / EBITDA
Leverage and Liquidity
Million RUB 31-Dec-2019 30-Jun-2020 Change
Borrowings 15,792 64,390 4.1x
Lease Liabilities 557,124 633,069 13.6%
Pension Liabilities 784 809 3.2%
Total Debt 573,700 698,268 21.7%
Cash and Short-Term
Investments25,861 48,659 88.2%
Net Debt 547,839 649,609 18.6%
• Total and Net debt increased on the back of management’s efforts to accumulate liquidity amid significant
pressure on revenue.
• Cash position of RUB 48.7 billion and undrawn credit lines of RUB 108.4 billion.
1 Based on financial data under IFRS 16; 30-Jun-2020 exchange rate – 69.95 RUB per USD, 31-Dec-2019 exchange rate – 61.91 RUB per USD.
2 Lease liabilities repayment schedule includes only principal amount and does not include future interest payments and liabilities for heavy maintenance. Does not include restructuring arrangements currently discussed but not finalized.
Repayment Schedule Before Restructuring2
Debt Profile1
Liquidity
Billion RUB Billion RUB
3.2
4.4
5.8
31-Dec-2019 31-Mar-2020 30-Jun-2020
37.4 48.7 56.8
81.3108.4 111.4
118.7
157.1168.2
31-Mar-20 30-Jun-20 31-Jul-20
Cash and cash equivalents Available credit lines
40.5
90.9 81.9 73.3
321.7
2020 2021 2022 2023 2024+
30
Aeroflot’s Steps to Navigate COVID-19 Crisis
Decrease number of operations to reduce variable costs
Optimize key fixed cost lines and CAPEX
Negotiations with partners and suppliers
Addressing liquidity risks of unearned revenue from ticket refunds
Restructuring deliveries of the fleet
Focus on domestic market and launching new domestic destinations
Operating passenger aircraft as cargo with increased capacity
~ 10% of capacity (ASK) operated in April and May
Suspension of non-key spending
Special terms with lessors + ongoing negotiations
Introduction of vouchers
Aircraft deliveries moved to later periods
New domestic routes in Summer 2020 schedule
Positive cargo revenue contribution
Work stream Comments Results
Optimizing monthly cash outflow(1) Reducing 2020 CAPEX State support
~10-11
CMD 2019 plan Post management actions
Billion RUB
~65
Up to 3x decrease
Monthly opex in normalenvironment
Post management actions
Billion RUB, Including VAT, monthly average
• A subsidy of RUB7.9bn from the Government
• State guarantees for loans for RUB70bn,
Aeroflot has signed two loan agreements in the
total amount of RUB70bn
• The companies of Aeroflot Group entered into
loan agreements in the total amount of
RUB6.7bn with an interest rate of up to 2% per
annum under state programmes to support
business activity and employment
• Other measures
including regulation
amendments resulting
in indirect support are
announced
Source: Aeroflot Group.
Note: (1) Cash outflows, including cash costs, interest on lease payments (accounted as interest expense in PL) and indirect taxes (including VAT, etc.). Based on management accounts.
Down ~ 2x
Management team is taking all necessary steps to minimize the financial consequences of the COVID-19 impact onGroup’s operations and cash outflows from the Group to optimize cash position.
• Minimizing monthly cash burn via optimizing operating expenditures and reducing CAPEX coupled with roll-out
of state support are key to navigating through COVID-19 environment
31
1. Market Update and Operating Results
2. Strategy 2028
3. Network and Schedule Overview
4. Fleet Overview
5. Financial Performance
6. Appendix
32
Operating Data – Q2 & 6M 2020
UnitQ2
2019
Q2
2020Y-o-Y
6M
2019
6M
2020Y-o-Y
Q2
2019
Q2
2020Y-o-Y
6M
2019
6M
2020Y-o-Y
Passenger Traffic th PAX 9,343 877 (90.6%) 17,796 7,807 (56.1%) 15,431 1,731 (88.8%) 28,195 12,927 (54.2%)
International Routes th PAX 4,938 41 (99.2%) 9,318 3,479 (62.7%) 6,952 52 (99.3%) 12,682 4,567 (64.0%)
Domestic Routes th PAX 4,405 836 (81.0%) 8,477 4,328 (48.9%) 8,479 1,679 (80.2%) 15,513 8,361 (46.1%)
Passenger Turnover mn pkm 25,534 2,010 (92.1%) 48,820 21,134 (56.7%) 39,381 3,681 (90.7%) 72,924 32,716 (55.1%)
International Routes mn pkm 17,471 190 (98.9%) 33,396 12,860 (61.5%) 22,966 263 (98.9%) 43,531 16,844 (61.3%)
Domestic Routes mn pkm 8,064 1,821 (77.4%) 15,424 8,273 (46.4%) 16,415 3,417 (79.2%) 29,393 15,872 (46.0%)
Passenger Capacity mn ASK 32,472 4,298 (86.8%) 63,188 32,982 (47.8%) 48,839 7,080 (85.5%) 91,883 47,939 (47.8%)
International Routes mn ASK 22,662 404 (98.2%) 43,725 19,162 (56.2%) 29,024 487 (98.3%) 55,571 23,938 (56.9%)
Domestic Routes mn ASK 9,810 3,894 (60.3%) 19,463 13,821 (29.0%) 19,815 6,593 (66.7%) 36,312 24,001 (33.9%)
Passenger Load Factor % 78.6% 46.8% (31.9) p.p. 77.3% 64.1% (13.2) p.p. 80.6% 52.0% (28.6) p.p. 79.4% 68.2% (11.1) p.p.
International Routes % 77.1% 47.0% (30.1) p.p. 76.4% 67.1% (9.3) p.p. 79.1% 54.1% (25.0) p.p. 78.3% 70.4% (8.0) p.p.
Domestic Routes % 82.2% 46.8% (35.4) p.p. 79.2% 59.9% (19.4) p.p. 82.8% 51.8% (31.0) p.p. 80.9% 66.1% (14.8) p.p.
Tonne-Kilometres mn tkm 2,547 334 (86.9%) 4,849 2,291 (52.8%) 3,866 513 (86.7%) 7,154 3,433 (52.0%)
International Routes mn tkm 1,761 94 (94.7%) 3,343 1,406 (58.0%) 2,271 106 (95.3%) 4,291 1,789 (58.3%)
Domestic Routes mn tkm 787 240 (69.4%) 1,506 885 (41.2%) 1,595 408 (74.4%) 2,863 1,645 (42.5%)
Revenue Flights flights 72,427 13,223 (81.7%) 142,563 80,075 (43.8%) 112,826 22,480 (80.1%) 215,283 120,934 (43.8%)
International Routes flights 35,913 1,214 (96.6%) 70,104 30,854 (56.0%) 47,826 1,345 (97.2%) 91,052 38,107 (58.1%)
Domestic Routes flights 36,514 12,009 (67.1%) 72,459 49,221 (32.1%) 65,000 21,135 (67.5%) 124,231 82,827 (33.3%)
Flight Hours hours 208,037 34,961 (83.2%) 410,164 223,696 (45.5%) 310,399 56,685 (81.7%) 593,923 325,215 (45.2%)
Aeroflot Airline Aeroflot GroupIndicators
33
Operating Data of Subsidiary Airlines – Q2 & 6M 2020
Indicators Pobeda AuroraRossiya
Q2
2020Y-o-Y
6M
2020Y-o-Y
Q2
2020Y-o-Y
6M
2020Y-o-Y
Q2
2020Y-o-Y
6M
2020Y-o-Y
Passenger Traffic th PAX 335 (89.4%) 1,827 (64.1%) 441 (82.5%) 2,934 (35.8%) 78 (81.0%) 359 (51.6%)
International Routes th PAX 9 (99.3%) 569 (71.9%) - (100.0%) 447 (60.6%) 1 (98.7%) 71 (64.9%)
Domestic Routes th PAX 326 (81.9%) 1,257 (59.0%) 441 (77.6%) 2,486 (27.5%) 77 (74.6%) 289 (46.6%)
Passenger Turnover mn pkm 866 (90.1%) 5,906 (60.2%) 701 (84.4%) 5,184 (36.7% 103 (82.5%) 492 (53.4%)
International Routes mn pkm 70 (98.3%) 2,878 (61.0%) - (100.0%) 998 (59.6%) 4 (97.2%) 108 (61.6%)
Domestic Routes mn pkm 796 (82.8%) 3,029 (59.4%) 701 (78.6%) 4,186 (26.9%) 99 (77.5%) 384 (50.5%)
Passenger Capacity mn ASK 1,654 (84.4%) 8,193 (55.1%) 835 (82.8%) 5,752 (35.1%) 293 (67.1%) 1,011 (36.9%)
International Routes mn ASK 70 (98.5%) 3,425 (60.2%) - (100.0%) 1,141 (59.0%) 13 (94.7%) 210 (53.5%)
Domestic Routes mn ASK 1,584 (73.1%) 4,768 (50.5%) 835 (75.9%) 4,611 (24.1%) 280 (56.4%) 801 (30.4%)
Passenger Load Factor % 52.3% (30.2) p.p. 72.1% (9.4) p.p. 84.0% (8.6) p.p. 90.1% (2.4) p.p. 35.2% (31.2) p.p. 48.7% (17.2) p.p.
International Routes % 100.0% 12.7 p.p. 84.0% (1.7) p.p. - - 87.5% (1.3) p.p. 32.3% (29.0) p.p. 51.5% (10.8) p.p.
Domestic Routes % 50.2% (28.4) p.p. 63.5% (14.1) p.p. 84.0% (10.5) p.p. 90.8% (3.5) p.p. 35.4% (33.1) p.p. 47.9% (19.4) p.p.
Flight Hours hours 11,197 (80.1%) p.p. 46,270 (53.3%) 5,817 (83.0%) 40,792 (35.1%) 4,710 (60.5%) 14,356 (34.5%)
34
13.1 13.9 14.1
24.225.5 25.3
17.018.0 18.2
21.2x 22.0x 23.6x
2017 2018 2019
International Domestic Combined Connectivity ratio
2.5
0.9
0.1
0.1
2.6
1.0
6M 2019 6M 2020
13.9
9.9
25.0
17.117.9
13.4
6M 2019 6M 2020
4.9 mln62.7%
0.9 mln12.0%
0.9 mln11.9%
1.0 mln13.4%Point-to-point
International - InternationalInternational - Domestic / Domestic - InternationalDomestic - Domestic
Aeroflot Domestic and International Transit
… Results into a Flexible Approach to Transit Flows
Increase in International – International Traffic2
Growing Connectivity of Aeroflot Airline’s Flights1 ...
Source: Aeroflot Group.1 Data for Aeroflot airline’s own flights.2 From 2018 total international-international transit figures include Rossiya airline passenger traffic of the segment.
• Transit traffic segment experienced significant pressure from COVID-related decrease in demand in 6М 2020.
… Backed by expansion of international network …
4.44.8
5.3
0.03
0.2
4.44.8
5.5
2017 2018 2019Aeroflot Rossiya
Total int. – int. transit traffic, million PAX (Aeroflot and Rossiya flights)
(63.1)%
6 from winter ‘18/19 2 from summer ‘19
BukharaUzbekistan
DenpasarIndonesia
DublinIreland
LjubljanaSlovenia
OshKyrgyzstan
ColomboSri Lanka
MarseilleFrance
PalmaSpain
Share of international-international transit in total traffic of Aeroflot Group2
8.8% 8.7% 9.0% 9.3% 7.9%
23.8x n/a
35
• Group operations in all regions of the world experienced significant pressure from COVID-related
decline in demand.
Source: Data presented based on management accounts for scheduled flights of Aeroflot Group (excluding charter flights)
6M 2020 Operating Data by Region (Scheduled Routes)
Americas Russia CIS
Europe Middle East Asia
(60.8)% (60.7)% (55.2)%
(10.1) p.p.
Passengerscarried
RPK ASK PLF (67.4)% (66.0)% (60.8)%
(10.7) p.p.
Passengerscarried
RPK ASK PLF
(53.9)% (53.0)% (49.0)%
(6.1) p.p.
Passengerscarried
RPK ASK PLF
(46.1)% (46.0)%(34.0)%
(14.7) p.p.
Passengerscarried
RPK ASK PLF
(63.2)% (63.9)% (59.5)%
(8.1) p.p.
Passengerscarried
RPK ASK PLF
(63.2)% (62.4)%(55.5)%
(11.9) p.p.
Passengerscarried
RPK ASK PLF
36
• 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-20 31-Dec-19 31-Dec-19
Wide-body 38 19 57 59 (2)
Airbus A330 18 - 18 21 (3)
Airbus A350 1 - 1 - 1
Boeing 777 19 10 29 29 -
Boeing 747 - 9 9 9 -
Narrow-body (medium-haul) 154 82 236 238 (2)
Airbus A319- 30 30 30 -
Airbus A32074 6 80 82 (2)
Airbus A32133 - 33 33 -
Boeing 73747 46 93 93 -
Narrow-body (regional) 54 13 67 62 5
DHC 8 - 10 10 10 -
DHC 6 - 3 3 3 -
SSJ 10054 - 54 49 5
Total fleet 246 114 360 359 1
Aeroflot Group Fleet Breakdown
Aeroflot Group Fleet Overview Breakdown by Aircraft
Breakdown by Company
Narrow-body
(medium-haul)65%
Narrow-body
(regional) 19%
Wide-body16%
Aeroflot68%
Rossiya17%
Aurora7%
Pobeda8%
37• Aeroflot operates one of the youngest fleets in the industry among airlines with active fleet of 100+ aircraft.
• Aeroflot achieved significant progress in fleet renewal both for Aeroflot Airline and for the Group.
1 Average fleet age of selected airlines with fleet of 100+ aircraft according to FlightGlobal data (as of August 2020, data by legal entity)
Aeroflot Group Fleet Evolution
Aeroflot Group Fleet in Operation
Aeroflot Airline Fleet in Operation
Average Age of the Fleet 1
165189
224 253 245 246
4.44.2 4.1 4.2
5.05.2
2015 2016 2017 2018 2019 6/30/2020
Aircraft Average Age
247289
325366 359 360
6.4 6.5 6.2 6.26.9
7.2
2015 2016 2017 2018 2019 6/30/2020
Aircraft Average Age3.6
3.9
5.2
5.5
5.6
5.8
6.1
6.1
6.1
6.4
6.4
6.6
6.7
6.8
6.9
6.9
7.0
7.1
7.1
7.1
7.1
Malta Air
Frontier Airlines
IndiGo
Wizz Air
Hainan Airlines
Vietnam Airlines
Spirit Airlines
Qatar Airways
Sichuan Airlines
Azul
Singapore Airlines
Shandong Airlines
Etihad Airways
Tianjin Airlines
Xiamen Airlines
Shanghai Airlines
Lion Air
Vueling Airlines
Emirates
China Eastern Airlines
38
Sales abroad21.3%
Online38.8%
Call center and own branches
4.2%
Sales in Russia35.7%
Traffic Revenue Analysis – Q2 and 6M 2020
Q2 2019 Q2 2020 Y-o-Y Region6M
2019
6M
2020Y-o-Y
6M 2020
% of sch.
revenue
59,289 10,861 (81.7)% Russia 102,422 53,956 (47.3)% 47.1%
38,763 461 (98.8)% Europe 68,242 24,999 (63.4)% 21.8%
20,021 510 (97.5)% Asia 43,626 20,217 (53.7)% 17.7%
7,320 120 (98.4)% CIS 12,881 4,260 (66.9)% 3.7%
8,208 350 (95.7)%North and Central
America13,539 5,287 (60.9)% 4.6%
7,729 62 (99.2)%Middle East and
Africa14,011 5,784 (58.7)% 5.1%
141,330 12,364 (91.3)% Total 254,721 114,503 (55.0)% 100.0%
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
• In 6M 2020 revenue from scheduled passengers decreased by 55% on the back of softer demand in all regions of
operations due to COVID-19.
Q2 2019 Q2 2020 Y-o-Y Segment6M
2019
6M
2020Y-o-Y
6M 2020
% of revenue
61,175 11,479 (81.2)% Domestic 105,522 55,626 (47.3)% 46.5%
91,281 1,504 (98.4)% International 166,189 63,965 (61.5)% 53.5%
152,456 12,983 (91.5)% Total 271,711 119,591 (56.0)% 100.0%
Traffic Revenue Breakdown by Type
Scheduled Traffic Revenue by POS2
Revenue from Scheduled Passengers (RUB mln)1
Total Passenger Revenue (Scheduled + Charter, RUB mln)
Scheduled Passenger Flights
86.8%
Charter Passenger Flights 3.9%
Cargo 9.3%
39
3.59
3.823.73
3.50
3.80
3.66
Domestic International Total
(1.9)%2.91
2.992.96
2.32
2.67
2.49
Domestic International Total
Source: Aeroflot GroupNote: Data presented based on management accounts, scheduled and charted passenger flights revenue is used for calculations
RUB RUB
3.2%0.7% 1.1%6M Yield (Scheduled + Charter PAX Revenue / RPK) 6M RASK (Scheduled + Charter PAX Revenue / RPK)
RUB / RPK RUB / ASK
• Positive pricing trends of Q1 2020 were reversed in Q2 on the back of restrictions on movement both internationally
and domestically, which had significant impact on 6M yields.
• RASK was under pressure due to adjustment in PLF on the back of COVID-related demand pressure.
% Y-o-Y increase 2019 2020
Aeroflot Group Blended Flights Revenue Units
% Y-o-Y increase 2019 2020
(0.5)% (20.2)%(15.6)%
(10.6)%
(2.4)%
40
68,296
(140,705)
(2,848)(16,632)
(1,903) (1,853)
49,104
10,320
28,717 4,919 943
3,838 8,896
11,092
EBITDA 6M2019
Volume Pricing Other FX drag onrevenue
FX drag oncosts
Fuel* Staff* Aircraft andPAX*
Comm.Expenses*
Maintenance* Admin & Sales& Marketing*
Other OPEX* EBITDA 6M2020
EBITDA Evolution
* Excluding currency impact
• Key driver of EBITDA adjustment was a decrease in size and scale of operations on the back of COVID-related
pressure on demand as well as negative FX influence.
Total effect on revenue
∑=(162,088) RUB mlnTotal effect on costs
∑=104,884 RUB mln
Net volume and price effect
∑=(160,185) RUB mln
Net FX effect
∑=(3,756) RUB mlnNet volume and price effect
∑=106,737 RUB mln
41
Operating and Free Cash Flows
• Operating and Free Cash Flow remained under pressure in 6M 2020 due to demand pressure and adjustment of
operating program.
79,022
(75,190)
56,897
22,435 4,243
8,385
10,659
19,044
(9,805)
15 4,493 (1,286) 1,151
13,612
Loss BeforeIncome Tax
D&A InterestExpense
Other Adj.Before
WorkingCapital
Changes
Cash FlowsFrom
OperatingActivitiesBefore
WorkingCapital
Changes
WorkingCapital
Changesand Income
Tax
Net CashFlows FromOperatingActivities
Purchase ofPPE &
CapitalizedExpenses
ProceedsFrom Sale of
PPE
DepositPlacementand Return
Net Pre-delivery
Payments forAircraft
Netpayments for
financialassets underaircraft lease
contractsand Other
Free CashFlow 6M
2020
Free CashFlow 6M
2019
42
31-Dec-2019 30-Jun-2020 %
Flight crew 4,596 4,633 0.8 %
Cabin crew 12,822 12,579 (1.9)%
Other airline personnel (incl. airlines’ head office) 16,885 16,395 (2.9)%
Other non-airline subsidiaries’ personnel 6,993 6,356 (9.1)%
Total1 41,296 39,963 (3.2)%
• Aeroflot Group’s headcount decreased by 3.2% vs. December 31, 2019.
(20.9)%
Million RUB per employee, annualized to 30.06.2020 Passengers per employee, annualized to 30.06.2020
(19.4)%
1 Aeroflot Aviation School headcount is included in Other non-airline subsidiaries’ personnel
Headcount Overview
Aeroflot Group Headcount
Traffic Revenue / Average Airlines’ Headcount PAX Traffic / Average Airlines’ Headcount
Headcount by Category
16.7
13.5
30.06.2019 (LTM) 30.06.2020 (LTM)
1,664
1,317
30.06.2019 (LTM) 30.06.2020 (LTM)
Flight crew11.6%
Cabin crew31.5%
Other airline personnel
41.0%
Other non-airline personnel
15.9%
Personnel and Remuneration
Committee
(3 members)
Audit Committee
(3 members)
Strategy Committee
(8 members)
NameAudit
Committee
Personnel and
Remuneration
Committee
Strategy
Committee
Evgeny Ditrich Chairman
Vitaly Saveliev
Maksut Shadayev
Igor Kamenskoy Member Chairman Chairman
Yaroslav Kuzminov Member Member
Maksim Liksutov
Roman Pakhomov Chairman Member Member
Dmitry Peskov Member
Mikhail Poluboyarinov
Yuri Slyusar Member
Sergey Chemezov
Independent director according to the Russian Corporate Governance Code 43
Board of Directors
Corporate Governance Board of Directors
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.
PJSC Aeroflot
JSC Rossiya Airlines 75%-1 sh.
LLC Pobeda Airlines 100%
JSC Aurora Airlines 51%
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 2020; 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).
• 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.
LLC A-Technics
Maintenance 100%
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Aeroflot Group Structure
Airlines Ancillary Companies
Address: 119019, Russia, Moscow, Arbat St. 1
E-mail: [email protected]
Website: www.aeroflot.ru
Investor Relations Contacts