A E R O F L O T G R O U P

Q3 & 9M 2020 IFRS RESULTS

1 December 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

Disclaimer

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 forwardlooking 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.

2

Aeroflot Group Q3 2020 Highlights

• Total PAX Decline
• Strong Domestic PAX
• Recovery of Revenue
• Raising Liquidity

Million PAX

• Million PAX
• Billion RUB
• RUB

(7.3)%
3.3x

(45.3)%

10.3 mln

84.9

80 bn

share placement

18.5

Proceeds from

10.1

9.5 mln

25.5

70 bn

Loan agreements backed by state guarantees

• Q3 2019
• Q3 2020

• Q3 2019 Q3 2020
• Q2 2020 Q3 2020

Note: immaterial deviations throughout the p resentation are explained by rounding

In Q3 2020 the Group recovered a significant portion of operations and improved financial performance compared to Q2 raising additional liquidity to withstand headwinds of the coming low season.

3

1. Market Update and Operating Results

2. Network and Schedule Overview 3. Fleet Overview 4. Financial Performance 5. Appendix 1: Strategy 2028

6. Appendix 2

4

Overview of the Russian Market

• Passenger Traffic: Market vs Aeroflot Group
• Key Market Players

Russian Air Transportation Market (million PAX)

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

Change in PAX million

-23.7

(50.9)%

23.1

-4.7

9.2

-12.5

12.4

International Routes Domestic Routes

114.0

-2.9

4.5

-2.8

3.6

-11.5

3.4

(47.1)%

57.7

47.8
56.0

Aeroflot Group
S7 Group Ural Airlines UTair Group Foreign
Carriers
Others

14.2

24.8

25.3

2.6

56.3
41.8
23.1
22.7

Market Shares

• Q3 2019
• Q3 2020

• 9M 2019
• 9M 2020

• 9M 2019
• 9M 2020

22.2%

Aeroflot Group (million PAX)

(50.7)%

21.8%

(45.3)%

41.0%
41.2%

46.7

6.0%

6.3%
8.0%

13.0%

5.6%

21.0

18.5
23.1
6.5%

8.3

• 12.1%
• 16.3%

10.1

9.5

5.2

0.6

25.8
10.3
17.9

• Foreign Carriers
• Others

• Q3 2019
• Q3 2020

• 9M 2019
• 9M 2020

Source: TCH, Aeroflot Group. Figures include foreign carriers’ traffic.

The market’s and Aeroflot Group’s performance substantially improved in Q3, though remained under pressure due to

ongoing restrictions for international operations.

5

Domestic Market Recovery in Q3 2020

• Total PAX Traffic Trends: Q2 vs Q3
• Domestic PAX Traffic Trends: Q2 vs Q3

• Million PAX
• Million PAX

47.8

38.1

• (87.9)%
• (47.1)%
• (75.8)%
• (1.5)%

• 18.4
• 23.1

22.7

25.3

4.5
4.6

• Q2 2019
• Q2 2020

• Q3 2019
• Q3 2020

• Q2 2019
• Q2 2020
• Q3 2019
• Q3 2020

Source: TCH, Federal Air Transport Agency, Aeroflot Group calculations
Source: TCH, Federal Air Transport Agency, Aeroflot Group calculations

Domestic segment which contributes around half of the total Russian market posted rapid recovery after easing of domestic travel restrictions in June 2020.

6

Russian Domestic Market: Global Champion by

Recovery Pace

• Russian domestic PAX has recovered almost immediately…
• … with PAX growth in various regions.

Domestic PAX, y-o-y
Selected Russian Airport Statistics (PAX), September,

y-o-y change

• Jan
• Feb
• Mar
• Apr
• May
• Jun
• Jul
• Aug

6%
Sep 7%

Murmansk
+ 15%

8%

5%
(15%)

(16%)

(59%)

• (84%)
• (87%)

Source: TCH

Kaliningrad
Kirov

+ 35%
+ 47%

… making Russian market the fastest to recover globally…

September 2020, y-o-y

Ulyanovsk

• Domestic markets
• RPK
• PLF (pp)
• PLF
• World share

+ 47%
Anapa

+73%

World

Russia

China Brazil
-43%

7%

-12%

-3 pp

-4 pp
70%

82%

79% 81% 58% 57%

54%

36.2%

1.5%

9.8% 1.1% 1.1%
14.0%

0.8%

-3%

Sochi

+41%
Makhachkala
+25%

-55% -59% -65%

-89%

-1 pp
Japan USA
-20 pp -26 pp

• -28 pp
• Australia

Source: IATA, FAVT, data for Russian market is taken from FAVT, world market share is based on FY2019
Source: based on FAVT and airport data

Russian domestic market – the only one among key global markets to fully recover, already in August 2020 – just 1.5

months after the lockdown was over (based on IATA statistics).

7

Aeroflot Group Performance Across Different Brands

9M 2020 PAX Contribution¹ and Dynamics

Brand

October 2020
Business Model

-59.1%

••••

Flagship carrier
50.4%
28.4

-66% PAX -69% ASK

Premium product (4 Stars) High income and middle class Hub and spoke model

Premium Low Cost Mid-price

11.6

11.6

• 9M 2019
• 9M 2020

-16.7%

••

Point-to-point carriage Focus on domestic segment and underserved international routes
7.6
6.3

+11% PAX
+7% ASK

6.3

27.4%

• 9M 2019
• 9M 2020

•

Scheduled network under SU (Aeroflot) code from

-52.2%

-41% PAX -47% ASK

9.4

−

Moscow (SVO)

4.5

19.6% 2.7%
4.5

−

St. Petersburg (LED)

•

Charter operations

• 9M 2019
• 9M 2020

-52.2%

•

Airline for communities in the

Russian Far East offering

flights
1.3

-54% PAX -42% ASK

0.6

Regional

0.6
− between large cities

− to remote cities

9M 2020
9M 2019

Source: Aeroflot Group ¹ PAX contribution as of 9M 2020. Absolute number of passengers   in million in green circle

In Q3 2020 the Group recorded continued recovery of the domestic segment, but the overall result for 9M 2020 was still

under pressure from international segment’s slower reopening.

8

Pobeda Airline: Timely Value Proposition

• Total PAX dynamics in 2020
• Overview

mn PAX, change y-o-y

Growing PAX numbers from July 2020

after restarting operations in June
2019 2020
3.4
3.0

2.5
2.5

6.3 mm PAX

transported in 9M 2020 (-16.7% y-o-y)
2.0

92.7% PLF

0.4
LF remained high in 9M 2020 despite ongoing pressure

34 B737NG aircraft

Q1

22.2%

Q2

(82.5)%

Q3

with single class cabin (189 seats)

12.1%

17 p.p. RPK mix shift

from international to domestic in 9M 2020 y-o-y

Beginning of 2020 route network

Operating Indicators of October 2020

Petrozavodsk
Surgut
Helsinki

Traffic above 2019 levels

Kirov

14

Saint Petersburg
Perm
Ekaterinburg

Krasnoyarsk Tomsk

Moscow

Kazan

Riga

Novosibirsk

Cheboksary

62

Tyumen
Nizhnekamsk
Ulyanovsk

Samara
Kemerovo

• Omsk
• Kaliningrad

Chelyabinsk

Magnitogorsk
Eindhoven
Ostende
Berlin

• Leipzig
• Ulan-Ude 

91.5%
6 045

Cologne
Karlovy Vary

Baden-Baden Memmingen
Salzburg

1 044,3

Volgograd
Astrakhan
Nazran
Bratislava

Rostov

Krasnodar
Innsbruck Venice
Bergamo Genova
Pisa

Min.Vody

Anapa
Gelendzhik Varna

12

Rimini Tivat

Sochi

Vladikavkaz
Istanbul

Makhachkala

Tbilisi Gyumri

• Girona
• Rome

• Bari
• Batumi

• Traffic, th PAX
• Revenue flights,

cycles
PLF, %

Cagliari
Palermo

Antalya

Gazipaşa

Bodrum
Dalaman
Catania
Larnaca

• 15.6%
• (4.2) p.p.
• 10.6%

Cities the airline operates flights to
Base cities with >10 routes served from city

(number of routes in circle)

XX

Cities with <10 routes served from city

Source: Aeroflot Group

Pobeda continues to lead the industry recovery leveraging its value proposition appealing to cost conscious passengers.

9

1. Market Update and Operating Results

2. Network and Schedule Overview

3. Fleet Overview 4. Financial Performance 5. Appendix 1: Strategy 2028

6. Appendix 2

10

Aeroflot Group Network Adjustments

Beginning of 2020 route network

• Stockholm
• Helsinki

Tallinn
Oslo

Murmansk
Salekhard
Arkhangelsk
New Urengoy

• Khanty Mansiysk
• Syktyvkar

Surgut Ekaterinburg Tyumen

Riga Kaunas Berlin

Saint Petersburg

• Yakutsk
• Nizhnevartovsk

Kemerovo
Nizhnekamsk Nizhny Novgorod

MOSCOW

• Perm
• Magadan

Copenhagen
Minsk

MOSCOW

Hamburg

Krasnoyarsk

• Samara
• Novosibirsk

• Omsk
• Kaliningrad

Berlin

• Kazan
• Tomsk
• Novokuznetsk

Minsk

• Ufa
• Voronezh

Saratov
Abakan

Amsterdam

Chelyabinsk Kostanay
Irkutsk
Hamburg Dusseldorf Orly Paris
P. Kamchatsky

Hannover

Barnaul

Warsaw

Astana Karaganda
Almaty
Shymkent
Bishkek
Magnitogorsk

London Brussels
Frankfurt Paris

• Orenburg
• Frankfurt

Dusseldorf
Dresden Prague Vienna

Khabarovsk
Yu. Sakhalinsk

• Belgorod Volgograd
• Aktobe

Prague
Munich

• Rostov
• Atyrau

Astrakhan Stavropol
Ulan Bator Beijing
Chisinau Gelenzhdik Simferopol
Sochi Mineral Waters Istanbul

• Harbin
• Vienna

Rimini
Milan

• Nice
• Aktau

Makhachkala Baku
Anapa Burgas Varna

• Adler
• Vladivostok
• New York

Chisinau
Stuttgart

Rome

• Barcelona
• Tivat
• Tashkent

Budapest

• Munich
• Zurich

Geneva Lyon

• Yerevan
• Samarkand

Krasnodar Teheran

• Dalian
• Washington

Antalya Larnaca
Tokyo
Seoul Busan

Belgrade
Venice

Beirut Tel Aviv

Milan Nice

Los Angeles

Bucharest

Shanghai
Delhi

Zagreb Sofia
Bologna
Split

Tivat
Barcelona

Miami Havana
Guangzhou Hong Kong
Dubai

Rome

• Istanbul
• Tbilisi

• Madrid
• Thessaloniki

Hanoi

Valencia
Lisbon
Alicante

Malaga
Athens
Antalya

Larnaca

Bangkok
Ho Chi Minh City

Heraklion

Phuket
Male

Aeroflot routes Rossiya routes Aurora routes

Tenerife

# of Flights Evolution by Region, 9M 2020 y-o-y¹

2020 Domestic Scheduled Network (flights per day, av.)

Russia Europe

(27.9)%

• 132
• 327

199
409 130