A E R O F L O T G R O U PQ1 2021 IFRS RESULTS
1 June 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 Q1 2021 Highlights
Note: immaterial deviations throughout the presentation are explained by rounding.1 Excluding Aurora Airlines traffic in Q1 2020 2 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 Q1 2021 the Group continued to further recover operations and normalize yields dynamicsdespite the headwinds of the low season.
Q1 2020 Q1 2021
6.5 mln
6.5 mln
(0.1)% +7.5%
3.72
3.99
Q1 2020 Q1 2021
Billion RUB
78.2
93.8
31-Dec-20 31-Mar-21
+16.0%
13.8
16.0
Q1 2020 Q1 2021
4
1. Market Update and Operating Results
2. Network and Schedule Overview
3. Fleet Overview
4. Financial Performance
5. Appendix
5
14.8 14.6 15.0
13.3 11.5 2.7
28.1 26.1
17.7
Q1 2019 Q1 2020 Q1 2021
International Routes Domestic Routes
7.4
3.6
1.4 1.2 0.7
3.5
AeroflotGroup
S7 Group Ural Airlines UTair Group ForeignCarriers
Others
In Q1 2021 demand on domestic market significantly recovered moving closer to 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, Q1 2021
Market Shares
Foreign Carriers Others
Q1 20201 Q1 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.
6.8 6.5 6.5
5.6 4.40.9
12.410.9
7.4
Q1 2019 Q1 2020 Q1 2021
(32,5)%
(40,7)%
(32,3)%
(37,1)%
Million PAX
6
(87)%(84)%
(59)%
(16)%
6% 7%
(7)%
(23)%
(15)% (0)%(2)%
5%
12%
(99)%(99)%(99)%(99)%
(88)%
(78)%(77)%
(85)%(85)%(84)%
(81)%
(74)%
(73)%
(92)%(91)%
(77)%
(52)%
(35)%(32)%
(39)%
(48)%
(43)%
(34)%
(33)%
(27)%
(23)%
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
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 both in 2020
after easing of domestic travel restrictions and in 2021 following the fade of COVID-19 second wave.
% change vs. 2019
2020 2021 2020 2021
8.6
7.5
5.6
4.14.6 5.0
4.4
5.66.2
0.8
1.3
1.2
0.50.5
0.60.6
0.9
1.0
0.7 1.0
2.8
6.8
9.3
8.8
6.8
4.75.1
5.55.0
6.5
7.2
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
Domestic International
7
Aeroflot Group Performance Across Different Brands
44.4%• 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
Premium6.9
3.33.3
(52.8)%
1.51.3
2.5 2.8
(9.8)%
10.5%
Q1 2020 Q1 2021
18.3%
37.4%
1.3
2.8
• Low cost
• High level of utilization
• Point-to-point carriage
• Connectivity on selected
routes in SVO
Source: Aeroflot Group1 PAX contribution as of Q1 2021. Absolute number of passengers in million in green circle.
Brand and Business Model Q1 2021 PAX Contribution1 and Dynamics April 2021 PAX
Regional &
Mid-price
Low Cost
+9.3x
vs Apr’20
(55.1)%
vs Apr’19
Q1 2021 Aeroflot Group results showed recovery in the LCC segment while network carriers were still under pressure from
international segment’s slow reopening.
Q1 2020 Q1 2021
Q1 2020 Q1 2021
+10.3x
vs Apr’20
(20.4)%
vs Apr’19
n/a
vs Apr’20
33.1%
vs Apr’19
8
PLF
2.02.5
2.8
Q1 2019 Q1 2020 Q1 2021
Pobeda Airlines: A New Chapter
Growing Q1 2021 PAX numbersvs. Q1 2020 and Q1 2019
Total PAX and PLF dynamicsOverview
34 B737NG aircraftas of March 2021 with single class cabin (189 seats)
2.8 mm PAXtransported in Q1 2021 (+10.5% y-o-y)
92.2% PLFLF remains high despite ongoing pressure
Source: Aeroflot Group
22.2%
45.5%
mn PAX, change y-o-y; PLF, %
Pobeda continues to lead the industry recovery leveraging its value proposition appealing to cost conscious passengers.
10.5%
91.2%92.5% 92.2%
Nalchik
PermCheboksary
Moscow – SVO
Vladikavkaz
Barnaul
Min.Vody
Petrozavodsk
Sochi
Sheremetyevo base roll-out in 2021
Ufa
10 B737NG aircraft to be based in SVOby the end of summer season 2021
14 domestic routes to be launched from SVO in 2021
Routes operated together with Aeroflotcode-share in place for efficient intergroup cooperation and servicing transfer PAX
Makhachkala
Ekaterinburg
St. Petersburg
Gorno-Altaysk
Ulyanovsk
launched in May to be launched in June to be launched in July
9
1. Market Update and Operating Results
2. Network and Schedule Overview
3. Fleet Overview
4. Financial Performance
5. Appendix
10
Aeroflot routesRossiya routes
Source: Aeroflot Group
Note: 1 All flights of Aeroflot Group in Q1 2021 vs. Q1 2020 (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
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 Network: Q1 2021 Update
Domestic Scheduled Network (flights per day, average)# of Flights Evolution by Region, Q1 2021 y-o-y1
Beginning of 2020 route network
409
Q1 20 Q2 20 Q3 20
199
157
327
93
132
40
Despite recovery of domestic segment international flights are under continued pressure.
13030
Q4 20
170
95
274
Q1 21
165
126
245
(51.3)%
(55.3)%
(70.4)%
(74.4)%
(90.6)%
(93.2)%
(27.1)%
Total
Middle East & Africa
CIS
North & Central America
Asia-Pacific
Europe
Russia
Seychelles
Dublin
Cairo
Colombo
Osh
11
Note: both 2020 and 2021 metrics are benchmarked against 2019 numbers
Capacity and PLF: 2021 vs 2019
ASKvs
2019
PLFvs
2019
TotalDomestic International
78% 71% 74% 77% 80% 83% 78%
(5) p.p. (7) p.p. (2) p.p.
1 p.p. 2 p.p. 3 p.p.
(3) p.p.
Oct Nov Dec Jan Feb Mar Apr
PLF y-o-y change
77%61% 65% 65% 69% 73% 73%
(4) p.p.
(14) p.p.
(10) p.p.
(11) p.p.
(8) p.p. (6) p.p.
(7) p.p.
Oct Nov Dec Jan Feb Mar Apr
PLF y-o-y change
78% 73% 77% 81% 83% 86% 80%
(7) p.p. (8) p.p.(2) p.p.
4 p.p. 5 p.p. 4 p.p.
(2) p.p.
Oct Nov Dec Jan Feb Mar Apr
PLF y-o-y change
Gradual recovery of capacity post low Winter 2020/2021 season while positive PLF dynamics .
2020 2021 2020 2021 2020 2021
2020 2021 2020 2021 2020 2021
12
Source: Aeroflot.
Aeroflot Summer Regional Program
Regional flight program Key highlights of regional program
New domestic services and increased frequencies in Summer schedule 2021 leverages domestic demand while international flights remains largely suspended.
Perm Ekaterinburg
Moscow
Ufa
Arkhangelsk
Chelyabinsk
Samara
Kazan
Murmansk
NovosibirskTuymen
Orenburg
SurgutSyktyvkar
Direct flights from 13 regional cities to domestic
Black Sea resorts
starting from May 24, 2021
39 city-pairs with varied frequencies
from several flights per week to daily
0.9 million seats (to Black Sea resorts)
throughout summer season of 2021
Leverage domestic market opportunities
amid reduced international flights
Launching Krasnoyarsk hub
5 leisure destinations starting from June 2021
New services from Moscow and St. Petersburg
to improve leisure options for summer season of 2021
Increasing frequency of service to points in Urals,
Siberia, Far East and Volga River basin
in line with seasonal schedule with extra flights
Additionally: around 1.1 mn seats vs 2019 on domestic routes
Black Sea Resorts
13
Source: Aeroflot Group, data presented based on management accounts
Aeroflot International Network Adjustments
DestinationAug
20vs
Dec
20vs
Apr
21vs
Mar
20
Cairo - 3 5 7
Dubai - 7 7 21
Istanbul 19-28 28 2-35 32-35
Antalya 16-21 4-8 0-14 12-13
London 8-14 9-12 7-8 32
Belgrade - 2 2 21
Geneva 1 3 3 14
Male - 7 7 7
Nur-Sultan - 1 3 12
Newly reopened flights from 2021 (selected)
Erevan - - 4 42
Baku - - 2 14
Seychelles - - 2 0
Gradual reopening of international network… …Supports passenger traffic recovery since August
Aeroflot Airlines, number of one-way weekly flights (selected)
More passenger-cargo flights to multiple destinations
in CIS, EU, Asia, USA.+
2021 highlights
Gradual reopening of international network indicates existing and delayed demand for international travel (based on load factors and yields performance).
Aeroflot Airline, thousand PAX
Scheduled service to Seychelles
opened in April 2021
Flights to Helsinki, Baku, Yerevan, Almaty
relaunched with limited frequency
Air travel with Turkey suspended
in April 2021 following worsening pandemic situation
6.4 12.4 22.6 26.2
125.8
196.3211.3
142.0
188.7192.7199.8
284.3320.1
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
2020 2021
14
Segment
Source: Aeroflot GroupNote: Data presented based on management accounts, scheduled flights revenue is used for calculations
Aeroflot Group Revenue Units vs Q1’20 and Q1’19
Yields and RASK demonstrated solid improving performance both vs. 2020 and 2019 numbers.
Total
Domestic
International
Q1 Scheduled Yield, RUB Q1 Scheduled RASK, RUB
(3.9%)
7.5%10.9%
76.4%87.3%
22.3%15.0%
12.2%
74.6%68.9%
(3.8%)
Q1’21/Q1’19 change
Q1’21/Q1’20change
1.9%
15
1. Market Update and Operating Results
2. Network and Schedule Overview
3. Fleet Overview
4. Financial Performance
5. Appendix
16
Aeroflot Group continues to control capacity expansion to the possible extent.
Type of
aircraft
Fleet as at
31.12.2020
3M 2021 Fleet as at
31.03.2021Delivery Phase out
Wide-body (long-haul) 56 1 (2) 55
A-33017 - (2) 15
A-3501 - - 1
B-77729 1 - 30
B-7479 - - 9
Narrow-body (medium-haul) 225 - (5) 220
A-31920 - - 20
A-32079 - (5) 74
A-32133 - - 33
B-73793 - - 93
Narrow-body (regional) 61 - - 61
SSJ-100 61 - - 61
TOTAL Aeroflot Group 342 1 (7) 336
Fleet Update
Actual and expected additions Fleet Plans
Q2-Q4 2021
Delivery Phase out
9 (3)
- (3)
7 -
2 -
- -
9 (13)
- (2)
6 (11)
3 -
- -
15 -
15 -
33 (16)
17
1. Market Update and Operating Results
2. Network and Schedule Overview
3. Fleet Overview
4. Financial Performance
5. Appendix
18
Q4 2020 Change y-o-y Million RUB (where applicable) Q1 2020 Q1 2021 Change
7,100 (49.2)% Passenger Traffic (mln PAX) 11,196 7,371 (34.2%)
67,969 (55.8)% Revenue 123,894 75,498 (39.1)%
50,133 (62.2)% PAX Traffic Revenue 106,608 60,307 (43.4)%
103,367 (33.3)% Operating Costs 137,050 96,170 (29.8)%
(35,398) 34.3x (Operating Loss) (13,156) (20,672) 57.1%
(4,191) n/a EBITDA 13,054 7,708 (41.0)%
n/a n/a EBITDA Margin 10.5% 10.2% (0.3) p.p.
(43,802) 6.4x (Net Loss) (22,484) (25,143) 11.8%
Financial Highlights: Q1 2021 vs Q4 2020
Financial results of Q1 2021 are mainly impacted by limited international operations due to COVID-19 related restrictions.
19
123,894 (43,178)
(3,123) 3,155 (5,250)75,498
Q1 2020 ScheduledPassenger
Flights
CharterPassenger
Flights
Cargo OtherRevenue
Q1 2021
Revenue Dynamics Decomposition
Revenue by Key Factors Revenue by Business Segments
Million RUB Million RUB
Though revenue remains under pressure from the pandemic, Aeroflot Group delivered a number of quarter-over-quarter improvements on the back of improved yields, load factor and continued strong cargo segment performance.
123,894 (48,925)
5,103 1,760 (6,334)
75,498
Q1 2020 Volume Currency Pricing Other Q1 2021
1 Other revenue dynamics includes the effect of Aurora’s Q1 2020 own flights and other
revenue deconsolidation.
1
20
Operating Costs
Q4 2020Change
y-o-y
Operating Expense
(RUB mln)Q1 2020 Q1 2021
Change
y-o-y
Change
ex. FX
% of OpEx
(Q1 2021)
15,451 (65.9)% Fuel 38,604 16,816 (56.4)% (57.9)% 17.5%
87,916 (19.8)% Opex (ex. Fuel) 98,446 79,354 (19.4)% (23.5)% 82.5%
14,783 (51.3)% Aircraft & passenger servicing 27,444 15,566 (43.3)% (46.3)% 16.2%
31,207 10.3% D&A and customs duties 26,210 28,380 8.3% (1.9)% 29.5%
15,091 (40.9)% Staff 21,124 14,761 (30.1)% (30.6)% 15.3%
5,423 (39.2)% SG&A1 6,188 4,208 (32.0)% (33.8)% 4.4%
8,809 33.0% Maintenance 9,225 5,455 (40.9)% (41.0)% 5.7%
2,619 (48.3)% Communication Expenses 3,776 3,244 (14.1)% (20.0)% 3.4%
9,984 2.1x Other expenses2 4,479 7,740 72.8% 71.6% 8.0%
103,367 (33.3)% Total Opex 137,050 96,170 (29.8)% (33.2)% 100.0%
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. Expenses related to Aurora code-sharing are included as a
single sum in Other expenses line and are excluded from other operating expenses lines.
Operating Expenses Breakdown
In Q1 2021 operating costs decrease continued to slow down amid the Group restoring operationswhile keeping key cost lines under control.
21
Cost per ASK increased by 51% from RUB 3.35 on the back of capacity decrease resulting in fixed costs allocation over reduced ASKs.
Group Unit Costs
43.5%(4.7)%50.6%
Capacity: ASK adjustmentUnit Costs Dynamics
Operating Expense per ASK (CASK), RUB Q1 2020 Q1 2021 Change
Fuel 0.94 0.88 (6.5)%
CASK (ex. Fuel): 2.41 4.17 73.0%
Aircraft and Passenger Servicing 0.67 0.82 21.7%
D&A and Customs Duties 0.64 1.49 2.3x
Staff 0.52 0.78 50.0%
SG&A 0.15 0.22 46.0%
Maintenance 0.23 0.29 26.9%
Communication expenses 0.09 0.17 84.4%
Other Expenses 0.11 0.41 3.7x
Total CASK 3.35 5.05 50.6%
CASK Bridge
(53.3)%
Billion ASK
RUB / ASK
40.8
19.0
Q1 2020 Q1 2021
3.35
(0.06) 0.15
0.85 0.26 0.07 0.06 0.08
0.30
5.05
(0.24)
4.81
3.35
CASK Q1 2020 Fuel Aircraft andPassengerServicing
D&A and CD* Staff SG&A Maintenance CommunicationExpenses
Other Expenses CASK Q1 2021 FX CASK Q1 2021ex. FX
CASK Q1 2020
22
35.9
41.4
43.8
30
40
50
45
35
20
25
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 3M(WA)
2021 2020 2019
Jet fuel price continues to grow and presents the key headwind for the industry on top of the pandemic restrictions.
Fuel Efficiency: Mix Effect
(gramme / ASK)Thousand RUB per tonne of jet fuel
1
Source: Aeroflot Group1 Weighted average price for 3M (2019-2021).
9.0%
Fuel Cost Management
Average fuel price per tonne
Aeroflot Airline:
• Q4 2020: 31.5 thd RUB (-28.1% yoy).
• Q1 2021: 35.9 thd RUB (-13.2% yoy).
• Apr 2021: 39.7 thd RUB (+5.9% mom).
Aeroflot Airline Jet Fuel Price
22.124.1
Q1 2020 Q1 2021
23
Pobeda Financial Results
PAX Traffic and Other Operating Metrics
RASK1
CASK
Pobeda Statement of Profit and Loss (IFRS)
Million RUB Q1 2020 Q1 2021 Change
Revenue 11,114 11,227 1.0%
Operating Expenses 10,450 10,428 (0.2)%
Operating Income 664 799 20.3%
Operating margin 6.0% 7.1% 1.1 p.p.
Adjusted Net Income2 492 755 53.5%
EBITDA 2,744 3,037 10.7%
EBITDA margin 24.7% 27.1% 2.4 p.p.
2.26 2.26
Q1 2020 Q1 2021
2.5 2.8
Q1 2020 Q1 2021
2.13 2.09
Q1 2020 Q1 2021
Million PAX, dynamics y-o-y
RUB / ASK, dynamics y-o-y
RUB / ASK, dynamics y-o-y
Pobeda managed to improve operational and financial efficiency amid further expansion of operations in Q1 2021.
Stable RASK
PAX +11%
RPK +2%
ASK +1%
PLF +1.0 p.p.
CASK -1%
Note: based on managerial accounts, extract from Group consolidated financial statements under IFRS. Includes amortization and maintenance expenses for 12 aircraft subleased from Aeroflot; 4 aircraft transferred to Pobeda from another company of the Group in Q3 2020 are temporarily accounted as short-term operating lease.
1 Calculation based on Total Revenue of the Company2 Excluding net FX loss from lease liabilities revaluation in the amount of 1.4 bn RUB in Q1 2021
(13.2 bn RUB net FX loss in Q1 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).
24
Liquidity
Leverage and Liquidity
Million RUB 31-Dec-2020 31-Mar-2021 Change
Borrowings 88,635 88,690 0.1%
Lease Liabilities 662,507 664,239 0.3%
Pension Liabilities 792 749 (5.4)%
Total Debt 751,934 753,678 0.2%
Cash and Short-Term
Investments93,775 78,247 (16.6)%
Net Debt 658,159 675,431 2.6%
1 31-Dec-2020 exchange rate – 73.88 RUB per USD, 31-Mar-2021 exchange rate – 75.70 RUB per USD.
Debt Profile1
Billion RUB
Cash position of RUB 78 billion and undrawn credit lines of RUB 143 billion.
Net Debt / EBITDA
2020 and 2021 Net Debt / EBITDAratio mostly affected by lower EBITDAy-o-y amid pressure on financials
5.8
12.6
24.4
31.2
30-Jun-2020 30-Sep-2020 31-Dec-2020 31-Mar-2021
48.7 43.1
93.8 78.2
108.4148.0
142.8143.2
157.1
191.1
236.5221.4
30-Jun-2020 30-Sep-2020 31-Dec-2020 31-Mar-2021
Cash and ST investments Available credit lines
25
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
200 thd
400 thd
600 thd
1,000 thd
800 thd
Unearned traffic revenue includes proceeds from ticketsales, that will be recognized as revenue once flight serviceis delivered.
16.9RUB bn
31 Dec2018
31 Mar2019
31 Dec2019
31 Mar2020
31 Dec2020
31 Mar2021
49.9
75.6
53.4
46.844.6
61.5(6.6)
RUB bn
25.7RUB bn
26
1.9
8.7
(4.1)
(10.4)
9.3
11.9
(3.5)
18.3
0.1
6.7
Q1'20 Q2'20 Q3'20 Q4'20 Q1'21
Working Capital changes and other
CFO before changes in working capital
Operating Cash Flows and Lease Payments
Reduced monthly costs Operating Cash Flow
Billion RUB
49.0
34.4
Monthly costs inQ1'20
Monthly costs inQ1'21
Billion RUB, monthly average, includes
OPEX and net finance costs
Cash flows improved both year-on-year and quarter-on quarter, however industry environment remains challenging.
13.8 bn RUB 16.0 bn RUB(30)%
27
1. Market Update and Operating Results
2. Network and Schedule Overview
3. Fleet Overview
4. Financial Performance
5. Appendix
28
Operating Data – Q1 2021
Indicators Pobeda RossiyaAeroflot
Q1 2021 Y-o-Y Q1 2021 Y-o-Y Q1 2021 Y-o-Y Q1 2021 Y-o-Y
Passenger Traffic th PAX 3,270 (52.8%) 2,755 10.5% 1,345 (9.8%) 7,371 (32.5%)
International Routes th PAX 677 (80.3%) 161 (64.1%) 68 (87.9%) 905 (79.6%)
Domestic Routes th PAX 2,593 (25.7%) 2,594 26.9% 1,278 37.2% 6,466 (0.1%)
Passenger Turnover mn pkm 7,626 (60.1%) 4,582 2.2% 3,035 (39.8%) 15,243 (46.8%)
International Routes mn pkm 2,471 (80.5%) 395 (60.4%) 206 (92.7%) 3,072 (81.4%)
Domestic Routes mn pkm 5,155 (20.1%) 4,187 20.1% 2,829 26.6% 12,171 0.0%
Passenger Capacity mn ASK 10,337 (64.0%) 4,970 1.1% 3,728 (42.4%) 19,035 (52.5%)
International Routes mn ASK 3,725 (80.1%) 467 (59.1%) 236 (92.8%) 4,428 (80.9%)
Domestic Routes mn ASK 6,612 (33.4%) 4,502 19.2% 3,492 9.7% 14,607 (13.5%)
Passenger Load Factor % 73.8% 7.1 p.p. 92.2% 1.0 p.p. 81.4% 3.5 p.p. 80.1% 8.6 p.p.
International Routes % 66.3% (1.2 p.p.) 84.6% (2.9 p.p.) 87.2% 1.8 p.p. 69.4% (1.7 p.p.)
Domestic Routes % 78.0% 13.0 p.p. 93.0% 0.7 p.p. 81.0% 10.8 p.p. 83.3% 11.2 p.p.
Flight Hours hours 73,156 (61.2%) 35,780 2.0% 29,089 (17.1%) 138,025 (46.7%)
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.
29
Source: Data presented based on management accounts for scheduled flights of Aeroflot Group (excluding charter flights)
Q1 2021 Operating Data by Region (Scheduled Routes)
Americas Russia CIS
Europe Middle East Asia
Group operations in all regions of the world experienced significant pressure from COVID-related decline in demand.
(72.1)% (72.0)% (67.8)%
(9.4) p.p.
Passengerscarried
RPK ASK PLF
(3.5)% (2.6)%
(16.6)%
11.9 p.p.
Passengerscarried
RPK ASK PLF
(57.0)%(51.0)% (48.4)%
(3.4) p.p.
Passengerscarried
RPK ASK PLF
(93.1)% (93.0)% (92.3)%
(6.2) p.p.
Passengerscarried
RPK ASK PLF
(11.4)%(18.8)%
(33.7)%
14.3 p.p.
Passengerscarried
RPK ASK PLF
(91.0)% (91.0)% (90.3)%
(5.1) p.p.
Passengerscarried
RPK ASK PLF
30
Well-balanced fleet structure in line with Group’s strategy
Aircraft TypeOperated by Total as of Total as of Change vs.
Aeroflot Subsidiaries 31-Mar-21 31-Dec-20 31-Dec-20
Wide-body 36 19 55 56 (1)
Airbus A330 15 - 15 17 (2)
Airbus A350 1 - 1 1 -
Boeing 777 20 10 30 29 1
Boeing 747 - 9 9 9 -
Narrow-body (medium-haul) 148 72 220 225 (5)
Airbus A319 - 20 20 20 -
Airbus A320 68 6 74 79 (5)
Airbus A321 33 - 33 33 -
Boeing 737 47 46 93 93 -
Narrow-body (regional) 37 24 61 61 -
SSJ 100 37 24 61 61 -
TOTAL Aeroflot Group 221 115 336 342 (6)
Aeroflot Group Fleet Breakdown
Aeroflot Group Fleet Overview Breakdown by Aircraft
Breakdown by Company
Narrow-body
(medium-haul)66%
Narrow-body
(regional) 18%
Wide-body16%
Aeroflot66%
Rossiya24%
Pobeda10%
31
In Q1 2021 revenue from scheduled passengers decreased by 42% on the back of softer demand in virtually all regions of operations due to COVID-19.
Traffic Revenue Analysis – Q1 2021
Region Q1 2020 Q1 2021 Y-o-YQ1 2021
% of sch. revenue
Russia 41,438 38,783 (6.4)% 65.8%
Europe 25,208 3,065 (87.8)% 5.2%
Asia 20,287 5,170 (74.5)% 8.8%
CIS 4,259 4,727 11.0% 8.0%
North and Central America 5,083 1,828 (64.0)% 3.1%
Middle East and Africa 5,864 5,388 (8.1)% 9.1%
Total 102,139 58,961 (42.3)% 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
Segment Q1 2020 Q1 2021 Y-o-YQ1 2021
% of revenue
Domestic 42,489 39,555 (6.9)% 65.6%
International 64,118 20,752 (67.6)% 34.4%
Total 106,608 60,307 (43.4)% 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)
Sheduled Passenger Flights
86.3%
Charter Passenger Flights 2.0%
Cargo 11.7%
Sales abroad7.3%
Online40.4%
Call center and own branches
6.0%
Sales in Russia46.3%
32
3.41
3.873.67
3.25
6.76
3.96
Domestic International Total
RUB RUB0.7% 1.1%Q1 Yield (Scheduled + Charter PAX Revenue / RPK) Q1 RASK (Scheduled + Charter PAX Revenue / ASK)
% Y-o-Y increase 2020 2021 % Y-o-Y increase 2020 2021
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
Yields and RASK demonstrated solid improving performance year-on-year.
(4.8)%
74.9%
7.8%
2.44
2.732.61
2.71
4.69
3.17
Domestic International Total
10.9%
71.5%
21.4%
33
13,054
(48,925)
1,760 (6,334) 5,103 (1,887)
22,358
6,459
12,697 755
3,785 2,091 (3,207)
7,708
EBITDA Q12020
Volume Pricing Other FX benefit onrevenue
FX drag oncosts
Fuel* Staff* Aircraft andPAX*
Comm.Expenses*
Maintenance* Admin & Sales& Marketing*
Other OPEX* EBITDA Q12021
Key driver of EBITDA adjustment was a decrease in size and scale of operations on the back of COVID-related pressure on demand.
EBITDA Evolution
* Excluding currency impact
Total effect on revenue
∑=(48,396) RUB mlnTotal effect on costs
∑=43,050 RUB mln
Net volume and price effect
∑=(53,499) RUB mln
Net FX effect
∑=3,216 RUB mlnNet volume and price effect
∑=44,937 RUB mln
34
Operating and Free Cash Flow improved in Q1 2021 y-o-y despite continuous demand pressure and adjustment of operating program.
Operating and Free Cash Flows
12,489 10,197
(30,442)
28,275
9,722 (362)2,414 (2,892)
6,715
9,309
16,024
(3,572)
(4,769)2,523
2,283
Loss BeforeIncome Tax
D&A InterestExpense
Unrealized NetFX Gain
Effect fromrevenuehedging
(finance 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 Q1 2021
Free CashFlow Q1 2020
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
Roman Pakhomov Chairman Member Member
Dmitry Peskov Member
Evgeny Ditrich
Yuri Slyusar Member
Sergey Chemezov
Independent director according to the Russian Corporate Governance Code 35
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 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 31 March 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%
36
Aeroflot Group Structure
Airlines Ancillary Companies
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
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