1881537-001.pptx

Aeroflot Group Q1 2018 Financial Results

Shamil Kurmashov, Deputy CEO for Commerce and Finance Ivan Batanov, Head of Revenue Management Andrey Napolnov, Head of Investor Relations

Moscow, Russian Federation 30 May, 2018 1 Disclaimer

This document has been prepared by PJSC “” (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.

2 Aeroflot Group Q1 2018 Highlights

+ 6.6 % + 6.1 % + 0.4 p.p. + 8.5 %

112 bn 103 bn 11.0 mln 36.6 bn

78.0% 78.5% 10.3 mln 34.5 bn

PASSENGER LOAD PAX ASK Revenue (RUB) FACTOR¹

Q1 2017 Q1 2018

• In Q1 2018, Aeroflot Group has continued operational development via expanding capacity on the back of opportunities provided by the market. • Capacity growth allowed Aeroflot to increase number of passengers transported as well as boost revenues while keeping PLF in the positive territory.

3 ¹ Immaterial deviations throughout the presentation are explained by rounding Aeroflot Group Business Seasonality

Passenger Traffic Passenger Revenue (Sch. + Charter) Blended yield (Sch. + Charter) Million PAX Billion RUB RUB/RPK

15.4 149.7 3.74 12.7 3.50 3.50 11.8 113.6 11.0 107.9 3.37 10.3 96.9 3.24 87.2

Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018

Passenger traffic, million PAX Passenger revenue, billion RUB Passenger yield (blended), RUB/RPK Share of each quarter in 12M 2017 results Share of each quarter in 12M 2017 results Q1 2018 yield deviation Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 21% 25% 31% 24% n/m 19% 25% 33% 24% n/m 4% (4)% (10)% (4)% -

Source: Company data

• Russian air transportation market shows highly pronounced seasonality which influences quarterly results of Aeroflot Group business. 4 1. Market Update

2. Aeroflot Group Overview

3. Network and Schedule Overview

4. Fleet Overview

5. Financial Performance

6. Capital Structure and Liquidity

7. Appendix

5 Competitive Dynamics

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

Russian Air Transportation Market (million PAX) International Routes mln PAX, Q1 2018 Increase in PAX million inc. PAX of Russian and Foreign Carriers and int. transit PAX Domestic Routes +0.7 20.3% 11.0 123.7 12.9% 102.8 +1.0 31.7% +0.5 61.1 +0.2 46.4 25.6 +0.3 +0.2 4.6 22.6 15.3% 3.2 3.4 10.9% 1.6 1.8 10.4 12.0 56.4 62.6 10.8% 12.2 13.5 Aeroflot S7 Group Group1 Foreign Others 2016 2017 Q1 2017 Q1 2018 Group Carriers Aeroflot Group (million PAX) Source: TCH, Rosaviatsia, Company estimates / 1 UTair Group includes UTair, Utair-Cargo and Turuhan 15.4% Market Share (PAX)

Q1 2017 Q1 2018 50.1 6.6% 43.4 15.9% 17.9% 23.3% 22.6 11.0 18.3 10.3 6.8% -2.5 p.p. 13.0% 45.5% 43.0% 9.7% 4.6 4.9 13.4% 25.2 27.6 6.5% 5.9% 5.7 6.1 6.5% 6.8% 6.9% 2016 2017 Q1 2017 Q1 2018 12.9% 12.4% Market Dynamics Net of Aeroflot Group “Clean” Market Share of Aeroflot Group (Net of Intl.-Intl. Transit Traffic) 23.9% Total Market 18.1% 42.9% Aeroflot Group 40.3% 37.1% International 22.0% 12.0% Domestic 14.7% Foreign Airlines Other Russian Airlines Source: TCH, Company estimates Note: Incl. foreign carriers’ traffic. • Aeroflot Group continued to deliver growth on further recovering market increasing PAX by 6.6% with acceleration on both 6 domestic and international routes. Continuing Market Recovery

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

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

18.6% 25.7% 20.5% 16.4% 12.9% 21.0% 21.8% 19.6% 42.5 % 16.9% 17.2% 16.4% 36.1 % 14.6% 13.0% 11.9% 25.3 % 20.7 % 15.3 % 13.4% 12.7% 12.2% 10.8% 7.4%

(2.5)% Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 International Domestic Total market Foreign carriers Russian carriers Source: SRS for foreign carriers, Rosaviatsia for domestic carriers, Company calculations Source: TCH, Company calculations ASK is calculated based on published RPK and PLF data Capacity (Russian Carriers) Passenger Load Factor (Russian Carriers)

Change in ASK y-o-y, % Change in PLF y-o-y, percentage points 33.4% 5.0 28.8% 3.8 3.7 24.7%

1.6 17.6% 16.4% 16.4% 0.9 0.8 0.3 0.3 14.0%

9.3% (0.3) 5.9% 6.2%

(3.5) Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 International Domestic International Domestic Source: Rosaviatsia, Company calculations Source: Rosaviatsia, Company calculations ASK is calculated based on published RPK and PLF data Quarterly PLF is calculated based on published RPK and PLF data • Beginning of 2018 is marked by further market recovery on the back of higher demand in both international and 7 domestic segments. 1. Market Update

2. Aeroflot Group Overview

3. Network and Schedule Overview

4. Fleet Overview

5. Financial Performance

6. Capital Structure and Liquidity

7. Appendix

8 Aeroflot Group Multi-Brand Strategy

Brand Business Model Focus Airport PAX Contribution1 PAX Growth Q1 2018 • Flagship carrier • Moscow +5.4% • Premium product (4 Stars) (Sheremetyevo) 7.0 7.4 • High income and middle class Premium 7.4 67.3% • Hub and spoke model

3M 2017 3M 2018

• Regional and leisure product • Saint-Petersburg (6.7)% Focus on domestic flights (Pulkovo) 2.0 1.9 Regional • Selected international routes, • Moscow (Vnukovo) 1.9 17.0% and Charter mostly out of VKO airport in Moscow • Charter operations 3M 2017 3M 2018

• Moscow (Vnukovo) • Short and mid-haul flights +42.2% • Mostly domestic segment, 1.4 12.8% Low Cost selected international 1.4 routes 1.0 • Point-to-point carriage 3M 2017 3M 2018

• , • The Far East flying on , +7.8% short- and mid-haul direct Regional / Yuzhno-Sakhalinsk 0.30 0.33 international and domestic 0.3 3.0% Far-East routes • Flights to remote cities (local flights) 3M 2017 3M 2018

• Simplified multi-brand product offering to capture customers in every market segment: from premium to low-cost. • Aeroflot and – key engines of the Group – both increased traffic by approximately 0.4 million PAX

9

1 PAX contribution as of 3M 2018. Absolute number of passengers in million in green circle Pobeda Airline: Three Full Years of Successful Operations

Overview of Pobeda Pobeda’s Network (Summer 2018)

• Operating from Vnukovo airport (3rd Moscow airport by PAX) Network • Network comprising 62 routes (38 unique for the Group) Surgut • Additional expansion to international destinations (10 countries) Saint Petersburg • 18 -800 NG (31.03.2018) Moscow Perm Tyumen Krasnoyarsk • Plans for 6 more aircraft to be delivered in 2018 Cheboksary Ekaterinburg Fleet Kazan Nab. Chelny • Single class cabin Kaliningrad Chelyabinsk Novosibirsk Ufa • 189 seats per plane Samara Cologne Leipzig Ulan-Ude,  • 1.4 million PAX in Q1 2018 (+42.2% y-o-y) Karlovy Vary Irkutsk Key features Baden-Baden Volgograd • Record high Q1 PLF of 93.1% (+1.5 p.p. y-o-y) Memmingen Bratislava Rostov and Astrakhan Anapa • International PPK is 25% of total Pobeda traffic Bergamo Venice Nalchik achievements in Gelenzhik Nazran • Active development of intra-region flights, and international flights from Sochi Q1 2018 Pisa Tivat Vladikavkaz Makhachkala the regions Girona Istanbul Batumi Tbilisi Reus Gyumri • 45 aircraft 2022 Goals Alanya • c. 15-16 mln PAX Paphos Larnaca Routes from Moscow Route from Makhachkala Routes from Rostov Routes from St.-Petersburg Route from Krasnoyarsk Routes from Ekaterinburg Routes from Sochi Growing Passenger Flows Improving Load Factor

thousand PAX PLF, % 42.2% +1.9 p.p.

+1.5 p.p. 1,401.7 94.2% +2.0 p.p. +0.7 p.p. 93.0% 93.1% 985.7 38.8% 41.6% 46.2% 92.3% 92.2% 91.5% 91.6% 91.0% 479.7 429.1 492.9 345.5 303.1 337.1

Jan Feb Mar Q1 Jan Feb Mar Q1 2017 2018 2017 2018

• Pobeda, the only Russian LCC, is a timely value proposition to cost conscious passengers. 10 Infrastructure Expansion to Support Future Growth

New Terminal B Highlights New infrastructure objects launched in 2018

Capacity – 20 mln PAX (4,200 PAX per hour)

Size – 110 thd sqm

New technologies implemented in the new terminal

Connected to terminal E via interteminal tunnels Terminal B Interterminal tunnel Express train

Evolution of key operating indicators (max. theoretical capacity) Sheremetyevo development plan

Runway-3 Warehouse 2017 2026 Terminal C Terminal B Fuel-filling Complex Terminal C-2 Cargo 80

Terminals pax Annual pax 40 1 capacity mm

90 2018 Flights per 55 Runway-1 hour2 2019 Runway-2

flights 2021 2024 Terminal F Source: Sheremetyevo press-center, aviation explorer, public sources Terminal E Interterminal Tunnel Note:1 Actual passenger traffic of 2017 2 According to IATA Methodology Terminal D • Aeroflot has started transferring domestic flights to the new Terminal B starting from May. During the first stage, expected to 11 finish on 1 June 2018, the Company will transfer 46 return flights to the new terminal. 1. Market Update

2. Aeroflot Group Overview

3. Network and Schedule Overview

4. Fleet Overview

5. Financial Performance

6. Capital Structure and Liquidity

7. Appendix

12 Aeroflot Group Network

# of Flights Evolution by Region1 Geographic Network (Q1 2018, y-o-y)

Murmansk Salekhard Arkhangelsk New Urengoy Syktyvkar Khanty Mansiysk Saint Petersburg 2.9 % Surgut Nizhnevartovsk Yakutsk Nizhnekamsk Perm Ekaterinburg Nizhny Novgorod Tyumen Kemerovo MOSCOW Samara Krasnoyarsk Kaliningrad Omsk Novosibirsk Novokuznetsk Kazan Tomsk Hamburg Berlin Voronezh Ufa Chelyabinsk Abakan Irkutsk P. Kamchatsky Minsk Saratov Kostanay Dusseldorf Frankfurt Orenburg Magnitogorsk Astana Barnaul Europe 7.2 % Orly Prague Belgorod Volgograd Aktobe Khabarovsk Munich Karaganda Paris Chisinau Rostov Atyrau Ulan Bator Yu. Sakhalinsk Vienna Astrakhan Milan Gelenzhdik Stavropol Almaty Nice Rimini Simferopol New York Anapa Adler Aktau Shymkent Vladivostok Rome Burgas Sochi Makhachkala Bishkek Barcelona Tivat Varna Mineral Waters Baku Tashkent Istanbul Yerevan Samarkand Krasnodar Dalian Asia Washington Antalya 3.4 % Teheran Larnaca Beirut Los Angeles Tel Aviv Delhi Shanghai

North and Central Miami Dubai Guangzhou 15.7 % Havana America Hanoi

Bangkok CIS 4.4 % Ho Chi Minh City Phuket

Male Middle East 13.5 % Aeroflot routes Rossiya routes Total 4.7 % Aurora routes

Average Scheduled Flight Frequency per Route (Aeroflot Group ex-Pobeda) Stockholm Oslo Helsinki Increase in Group frequencies by 4.4% was predominantly supported by expansion of the number of frequencies in Tallinn international segment (+7.5%) and in the sector of medium-haul routes (+4.7%). Riga Copenhagen MOSCOW Hamburg Kaunas Minsk Amsterdam Hannover Berlin Q1 2017 Q1 2018 London Dusseldorf Warsaw Brussels Dresden Frankfurt Prague Paris 2.0% Stuttgart Vienna Chisinau Zurich Munich Budapest 4.4% 4.7% Geneva Lyon Milan Venice Belgrade 7.5% Nice Bucharest 15.5 BolognaSplit Zagreb 15.2 1.4% Barcelona Sofia 13.8 Rome Tivat 13.1 13.1 Madrid Thessaloniki Istanbul Tbilisi 12.6 Valencia 10.2 11.0 Lisbon Alicante Athens Malaga Antalya 8.2 8.3 Heraklion Larnaca

Tenerife

Scheduled International Domestic Medium-haul Long-haul • Moderate growth of destinations, focus on increase in frequencies on scheduled routes. • Aeroflot Group operates flights to 169 unique destinations in 53 countries (in 2018 summer schedule, incl. Russia and new destinations to be launched in the upcoming month). 13

Note: 1 Scheduled flights of Aeroflot Group (excluding Pobeda LCC) Network Plans – Summer 2018

Increasing frequencies on Increasing frequencies on New destinations to be launched from domestic routes (examples) international routes (examples) Summer 2018

11 April Yekaterinburg 56 7 Prague 35 7 1 Cairo (Egypt) 3 flights per week

Rostov 42 7 Rome 28 7 1 May 2 Saransk (Russia) 14 flights per week N.Novgorod 35 7 Milan 28 7 1 July Kaliningrad 38 4 Istanbul 14 14 3 Naples (Italy) 7 flights per week

Ufa 35 7 Antalya 14 7 1 July 4 Verona (Italy) 7 flights per week

2 July Khanty-Mansiysk 7 7 Dubai 7 7 5 Burgas (Bulgaria) 7 flights per week Magnitogorsk 7 7 Bucharest 7 7 15 July Kyzylorda (Kazakhstan) Novy Urengoy 7 7 6 Lyon 3 4 4 flights per week

Weekly frequency in summer schedule 2017 25 March Addition in weekly frequencies starting from summer schedule 2018 7 St.Pete – London (LGW) 7 flights per week

• Aeroflot continued to increase frequencies both on the routes with already high capacity deployed as well as underserved routes. • Starting from summer 2018 we are launching flights to 6 new destinations in Russia, Kazakhstan, Italy, Bulgaria and Egypt. 14 Aeroflot Airline Domestic and International Transit

Growing Connectivity of Aeroflot Airline’s Flights1 ... … Results into a Flexible Approach to Transit Flows Average weekly frequency per route – Aeroflot airline Considerable share of transit of Aeroflot airline in Sheremetyevo Growth Q1 2018 16.0x 19.1x 21.2x 19.6x 21.3x 44.2% 42.1% 42.9% 42.3% 2.4% 40.1% 24.2 23.6 22.9 23.1 23.0 13.5% 12.1% 11.8% 11.6% 10.2% 17.0 17.0 16.3 16.1 16.2 4.5% 16.7% 16.9% 17.5% 16.6% 15.2% 5.4% 13.1 13.3 12.4 12.5 12.7 14.0% 13.1% 13.6% 14.2% 14.7%

2015 2016 2017 Q1 2017 Q1 2018 2015 2016 2017 Q1 2017 Q1 2018 Domestic - Domestic International - Domestic / Domestic - International International Domestic Combined Connectivity ratio International - International … Backed by Convenient Location of Aeroflot Hub Increase in International – International Traffic

Shortest Total Aeroflot airline int. – int. transit traffic, million PAX geographical distance Moscow

4.4 3.6 3.7 10.4%

From/To Paris London Vienna Stockholm Rome Via Moscow 15:00 15:05 13:45 13:15 14:55 Tokyo 1.0 1.1 Via Dubai 18:30 18:55 17:15 17:45 17:30 Via Moscow 14:05 14:10 12:50 12:20 14:00 Shanghai Via Dubai 17:25 17:50 16:10 16:40 16:25 Via Moscow 15:00 14:40 13:20 12:50 14:30 2015 2016 2017 Q1 2017 Q1 2018 Hong Kong Via Dubai 18:30 17:10 15:30 16:00 15:45 Pickup in point-to-point demand combined with expanding capacities Source: Company data, IMF, Eurostat, RITA, Russian State Statistics Service, Rosaviatsia. resulting in growing international transfer volumes 1 Data for Aeroflot airline’s own flights; Aeroflot adopted new frequency per route and connectivity ratio calculation methodology and previous periods were recalculated retrospectively • 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 15 destinations. Aeroflot and FIFA World Cup 2018 in Russia

Scheduled Routes to World Cup Locations Aeroflot Efforts

1 sourced by: * High frequencies to all host cities (scheduled flights)

Saint Petersburg 2 (4.5mm from Moscow) 42 140 Direct flights between host cities

42 Nizhny 49 Ekaterinburg Novgorod (1.9mm from Moscow) 7 from St. Pete: 28 (530k from Moscow) from St. Pete: (340k from St. Pete) 3 from Moscow: 7 from Moscow: 13 (33k from St. Pete) Moscow Additional capacity on routes with strong demand Kaliningrad (4.5mm from St.Pete) Kazan 63 (1.3mm from Moscow) (1.2mm from Moscow) (142k from St. Pete) (375k from St. Pete) from St. Pete: 7 Samara from St. Pete: 58 Saransk 4 (1.3mm from Moscow) (216k from St. Pete) 49 49 14 Charter flights for national football teams

from St. Pete: 10 from St. Pete: 13 from Moscow: 14 Volgograd (833k from Moscow) (43k from St. Pete) 5 Rostov-on-Don 35 (1.6mm from Moscow) (262k from St. Pete) Support for Russian football fans (5 RUB fares) Sochi (3.6mm from Moscow) 70 (515k from St. Pete) from St. Pete: 27 6 from Moscow: 23 Operational initiatives, including extra staff, English Aeroflot routes Rossiya routes - routes per week speaking personnel in call centre and host cities, X – weekly # of flights in 2017 summer schedule increased stock of replacement components etc (XXmm from …) - 2017A PAX (based on traffic flows on the leg, not a city-pair market) • Aeroflot Group is well positioned to leverage opportunities provided by the World Cup and will actively participate in passenger transportation, including dedicated direct and charter flights. • We will also invest in our operations to ensure best in-class service and reliable transportation options for all guests of the 16 Championship as well provide for affordable transportation for Russian football fans. Note: Pobeda also operates services to some host cities, including intra-regional flights. For information on Pobeda’s flights please refer to the respective section of the presentation 1. Market Update

2. Aeroflot Group Overview

3. Network and Schedule Overview

4. Fleet Overview

5. Financial Performance

6. Capital Structure and Liquidity

7. Appendix

17 Aeroflot Group Fleet Breakdown

Operated by Lease type Total as of Total as of Change vs. Aircraft Type Owned Aeroflot Subsidiaries Finance Operating 31-Mar-18 31-Dec-17 31-Dec-17 Wide-body 38 15 18 35 - 53 52 1 22 - 8 14 - 22 22 - 16 6 10 12 - 22 21 1 Boeing 747 - 9 - 9 - 9 9 - Narrow-body (medium-haul) 152 75 19 208 - 227 222 5 - 36 9 27 - 36 36 - Airbus A320 76 5 - 81 - 81 80 1 38 - 10 28 - 38 38 - Boeing 737 38 34 - 72 - 72 68 4 Narrow-body (regional) 42 14 - 50 6 56 51 5 DHC 8 - 11 - 5 6 11 11 - DHC 6 - 3 - 3 - 3 3 - SSJ 100 42 - - 42 - 42 37 5 Total fleet1 232 104 37 293 6 336 325 11 Breakdown by Aircraft 2 Breakdown by Company 2 Breakdown by Ownership Type 2

Wide-body Pobeda Owned Finance 16% Aurora 5% 2% 7% 12%

Narrow- Rossiya body 19% (regional) 17% Narrow- body (medium- Aeroflot Operating haul) 86% 67% 69% 1 Excluding An-24 and An-148 not operated by the airlines of the Group 2 Excludes planes out of operation • Well-balanced fleet structure in line with Group’s strategy 18 Fleet Expansion Strategy

Delivery/Phase-out Schedule1 Aeroflot Group Fleet as at Year-end2

Number of aircraft Type of Q1 2018 (Actual) Q2-Q4 2018 Current 409 (1) Delivery Phase fleet Delivery Phase aircraft out out

Wide-body (long-haul) 1 - 53 5 - 331325 A-330 - - 22 - - B-777 1 - 22 5 - B-747 - - 9 - -

Narrow-body (medium-haul) 10 (5) 227 26 (14)

A-319 - - 36 - (2)

A-320 3 (2) 81 8 (4)

A-321 3 (3) 38 2 (7)

B-737 4 - 72 16 (1)

Narrow-body (regional) 5 - 56 10 -

SSJ-100 5 - 42 8 -

DHC-8 - - 11 - -

DHC-6 - - 3 2 -

TOTAL 16 (5) 336 41 (14)

Net additions (1) + 11 aircraft + 27 aircraft 2017 2018E 2019E 2020E 2021E 2022E

1 As of 31.03.2018, not including aircraft leased or subleased to other operator (1 An-24 and 5 An-148 ). Phase-out plans for Q2-Q4 2018 include aircraft in finance lease that will be phased out according to the existing plan. 2 According to existing strategy. Not including aircraft leased or subleased to other operator. • Aeroflot Group continues to intelligently manage capacity additions and develop its fleet taking into account market trends and opportunities. 19 1. Market Update

2. Aeroflot Group Overview

3. Network and Schedule Overview

4. Fleet Overview

5. Financial Performance

6. Capital Structure and Liquidity

7. Appendix

20 Financial Highlights: Q1 2018

RUB mln Q1 2017 Q1 2018 Change (where applicable)

Passenger Traffic (mln PAX) 10,302 10,985 6.6%

Revenue 103,125 111,942 8.5%

Traffic Revenue 87,205 96,896 11.1%

EBITDAR1 13,742 10,767 (21.6)%

EBITDAR1 margin 13.3% 9.6% (3.7) p.p.

EBITDA (1,136) (7,732) 6.8x

• Financial results of Q1 2018 are explained by seasonality pattern of the Russian aviation market coupled with macroeconomic factors – fuel and exchange rate dynamics. • Cost pressure were partially offset by increasing yield that helped us to increase revenues ahead of passenger traffic and passenger turnover 21 1 EBITDAR = EBITDA + operating lease expenses. Revenue Growth Decomposition

Revenue by Key Factors Revenue by Business Segments RUB mln RUB mln 8.5% 8.5%

5.2% + 2.8% + 0.7% + (0.1)% 8.5% + 0.9% + 0.4% + (1.2)%

2,837 722 (75) 111,942 (1,274) 111,942 5,333 8,772 920 400 103,125 103,125 Charter RPK up Cargo Appreciation of by c6% y-o-y Mainly RUB in Q1 2018 volumes agreements y-o-y by c3% vs. + 9.6% with airlines Growth in USD, Growth across geographies: driven by operating depreciation of Russian revenue + 11.1% appreciating metrics: RUB in Q1 2018 International revenue +10.4% RUB vs. USD RPK + 6.7% y-o-y by c11% PAX + 6.6% vs. EUR

Q1 2017 Volume Currency Pricing Other Q1 2018 Q1 2017 Scheduled Charter Cargo Other Q1 2018 Passenger Passenger Revenue Flights Flights • Positive contribution of all volume and 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 22 Aeroflot Group Scheduled Flights Revenue Units

Q1 Yield (PAX Revenue / RPK) Q1 RASK (PAX Revenue / ASK) RUB RUB 3.1% 5.1%

3.67 2.80

3.6% 4.3% 3.49 2.72 3.43 2.65 3.31 1.6%

6.0% 2.55 3.09 3.05

2.44

2.30

Domestic International Total Domestic International Total % Y-o-Y increase 2017 2018 Note: Data presented based on management accounting figures, scheduled flights revenue is used for calculations. • RUB dynamics and changing mix of operations at subsidiaries’ level due to rapid expansion of LCC affected RUB yields in Q1 2018. 23 Aeroflot Airline Yield Dynamics (Monthly)

Aeroflot Airline Total Yield Aeroflot Airline International Yield

RUB/RPK, Change y-o-y in % 7.9% RUB/RPK, Change y-o-y in % 9.8%

4.5%

4.4% (0.1)% (2.6)% (1.8)% (4.2)% (4.2)% (7.3)% (9.5)% (10.6)% (11.4)%(11.9)% 0.4% 0.0% Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 2017 2018 (1.3)% Aeroflot Airline Domestic Yield (2.3)% (2.4)% RUB/RPK, Change y-o-y in % 4.1% 4.1% 3.7%

2.1% 1.8% 1.8% (4.8)% 1.1% 1.1% 0.4%

(6.3)%(6.1)% (0.0)% (0.4)%

(7.8)%

(8.9)% (4.5)% Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 2017 2018 2017 2018 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) • Aeroflot airline yields showed improvement on a monthly basis throughout 2017 (y-o-y) and in 2018 yield dynamics entered positive zone in both international and domestic segments • In Q1 2018 international segment was the main driver of Aeroflot growth: towards the end of the quarter in March 24 2018 yield dynamics reached +9.8% y-o-y. Operating Costs

Operating Expense Change Change % of Total OpEx Q1 2017 Q1 2018 (RUB mln If not stated otherwise) y-o-y ex. FX & NRE (Q1 2018)

Fuel 27,427 34,042 24.1% 27.2% 27.6%

Opex (ex. Fuel) 80,635 89,495 11.0% 12.0% 72.4%

Aircraft, traffic and passenger 21,154 21,908 3.6% 2.2% 17.7% servicing

Staff 18,588 21,404 15.2% 15.3% 17.3%

Operating lease 14,878 18,499 24.3% 28.9% 15.0%

Maintenance 8,179 8,469 3.6% 6.0% 6.9%

SG&A1 6,171 6,160 (0.2)% 0.2% 5.0%

D&A and customs duties 3,800 3,864 1.7% 1.7% 3.1%

Other expenses2 7,865 9,191 16.9% 19.0% 7.4%

Total Opex 108,061 123,538 14.3% 15.8% 100.0%

1 Includes sales and marketing expenses and administration and general expenses. 2 Other expenses include Global Distribution Systems cost, reserves accrual, catering expenses, banks’ commissions. • In Q1 2018 operating costs were significantly impacted by expansion of operations, fuel price increase and growing fleet of the Group. FX dynamics also affected key operating expenses lines. 25 Group Unit Costs

Operating Expense per ASK (CASK), RUB Q1 2017 Q1 2018 Change Fuel 0.79 0.93 17.0% Opex (ex. Fuel): 2.34 2.44 4.6% Aircraft, Traffic and Passenger Servicing 0.61 0.60 (2.4)% Staff 0.54 0.58 8.5% Operating Lease 0.43 0.51 17.2% Maintenance 0.24 0.23 (2.4)% SG&A 0.18 0.17 (5.9)% D&A and Customs Duties 0.11 0.11 (4.2)% Other Expenses 0.23 0.25 10.1% Total Opex 3.13 3.37 7.7%

7.7% 1.3% 9.2%

0.04 0.07 (0.00) (0.01) 0.02 0.13 (0.01) (0.01)

0.05

3.37 3.42 3.13 3.13

Reported CASK Staff Fuel Maintenance Aircraft, Traffic Operating Lease D&A and CD* Admin & Sales & Other Costs Reported CASK FX CASK Q1 2018 Reported CASK Q1 2017 and Passenger Marketing Q1 2018 ex. FX Q1 2017 * Customs duties Servicing

• Cost per ASK increased by 7.7% from RUB 3.13 in Q1 2017 to RUB 3.37 in Q1 2018 on the back of fuel, staff and operating lease expenses pressure. 26 Fuel Cost Management

Flight Hours Fuel Consumption per ASK Fuel Consumption per RTK

(thousand hours) (gr/ASK) (gr/RTK) 7.6% (1.2)% (1.5)%

242 22,9 22,6 294,8 290,2

225

Q1 2017 Q1 2018 Q1 2017 Q1 2018 Q1 2017 Q1 2018 Aeroflot Airline Jet Fuel Price Comments (RUB per tonne of jet fuel) • Efficient fuel procurement: 1-year supply contracts in 40 000 39 641 airports across Russia • Majority of fuel purchased in Russia and almost all 36 000 33 887 fuel at international airports supplied at formula-

32 000 linked price - Jet fuel priceIntl = NW Europe (FOB Rotterdam) price x Discount x FX rate2 x 1.183 + 28 000 Storage/Fuelling/Supply fees (if any of these applicable)

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Q1 1 • Increasing average fuel price. (WA) 2018 2017 Weighted average fuel purchase price of $697/ton 2018 (RUB 39,641/ton) in Q1 2018 vs $576/ton 56.6 56.8 57.1 USD/RUB (RUB 33,887/ton) in Q1 2017 (17.0% y-o-y increase in 69.1 65.7 66.9 Brent (USD) RUB terms) Source: Bloomberg, Company data 2 USD/RUB exchange rate as per the Central Bank of Russia 1 Weighted average price for Q1 3 Assuming 18% VAT rate • Aeroflot is achieving efficiency gain in fuel costs as new aircraft are put into operation 27 • Oil price and RUB fluctuations led to further upward pressure on jet fuel price in Q1 2018 EBITDA Evolution

(RUB mln) Total effect on revenue Total effect on costs ∑=8,817 RUB mln ∑=(15,412) RUB mln

Net volume and price effect Net FX effect Net volume and price effect ∑=5,980 RUB mln ∑=4,484 RUB mln ∑=(17,059) RUB mln

1,647 (7,469) Volume effect 2,837 (1,641) RUB mln

(75) 722 Price effect 5,333 (5,382) RUB mln

(2,838)

(455) (1,136) (4,297)

(7,732) (494) (10) (1,497)

Reported Volume Pricing Other FX benefit on FX benefit on Fuel* Staff* Aircraft, Traffic Operating Maintenance* Admin & Sales Other OPEX* Reported EBITDA Q1 revenue costs and PAX* Leases* & Marketing* EBITDA Q1 2017 2018 * Excluding currency impact • Positive FX impact was observed both on revenue and operating costs due to multidirectional dynamics of RUB vs. USD and EUR. • Key drivers of EBITDA adjustment along with the growth in size and scale of operations were fuel and 28 operating lease costs increase. Pobeda Financial Results

Increasing PAX Traffic RASK1 dynamics Growing Revenues of LCC Segment

Million passengers RUB Change RUB mln Q1 2017 Q1 2018 1.4 (Q1 18/17)

1.0 1.89 1.94 Revenue 3,277 5,079 55.0%

Q1 2017 Q1 2018 Q1 2017 Q1 2018 1 PAX up by 42.2% in Q1 2018 RASK up by 2.7% in Q1 2018 EBITDAR 137 233 69.7%

Increasing ASK CASK dynamics Billion ASK RUB EBITDAR margin 4.2% 4.6% 0.4 p.p.

2.6 2.28 2.28

1.7 EBITDA (685) (882) 28.8%

Q1 2017 Q1 2018 Q1 2017 Q1 2018 Net loss (474) (736) 55.1%

ASK up by 50.9% in Q1 2018 CASK down by 0.3% in Q1 2018

Note: based on managerial accounts transformed under IFRS standards 1 Calculation based on Total Revenue of the Company • Pobeda has demonstrated solid results backed by strong demand, active expansion of the fleet and efficient cost management which allowed LCC to secure flattish CASK while growing RASK in Q1 2018. 29 1. Market Update

2. Aeroflot Group Overview

3. Network and Schedule Overview

4. Fleet Overview

5. Financial Performance

6. Capital Structure and Liquidity

7. Appendix

30 Leverage and Liquidity

Debt Profile1 Net Debt / LTM EBITDA2

1.1

RUB mln 31-Dec-2017 31-Mar-2018 Change 0.9 0.9 Borrowings 3,181 3,530 11.0% 0.7 0.6 Finance Lease Liabilities 100,689 88,257 (12.3)%

Pension Liabilities 922 931 1.0%

Total Debt 104,792 92,718 (11.5)% 31-Mar-2017 30-Jun-2017 30-Sep-2017 31-Dec-2017 31-Mar-2018

Cash and Short Term 4 54,909 63,248 15.2% Investments RUB mln 30-Jun-2017 30-Sep-2017 31-Dec-2017 31-Mar-2018 2 42,618 48,925 49,883 29,470 Net Debt 49,883 29,470 (40.9)% Net Debt EBITDA 2 63,373 54,147 56,015 49,420 Debt breakdown by currency Finance Lease Repayment Schedule (RUB billion)3

Borrowings Finance Lease 11% 2% 38.6

11.0 13.0 12.8 12.9

98% 2018 2019 2020 2021 2022+ 89% RUB USD 1 31-Dec-2017 exchange rate - 57.60 RUB per USD , 31-Mar-2018 exchange rate - 57.26 RUB per USD 3 Not including interest; future payments in dollars converted into roubles at exchange rate of 57.26 RUB per USD 2 Net debt does not include capitalised operating lease expenses; based on annualized EBITDA 4 From 01-Jan-2018 interest on bank deposits is included in Cash and Short Term Investments (175.6 million RUB as at 31-Mar-2018) • Net Debt decreased by 40.6% mainly due to decrease in finance lease obligations as well as accelerated growth in cash position. 31 • Cash position of RUB 63.1 billion and undrawn credit lines of RUB 99 billion Operating and Free Cash Flows

(RUB mln)

Billion RUB Q1 2018 Billion RUB Q1 2018 Other adjustments before working capital changes, incl. 5.1 Working capital changes and income tax, incl. 14.5 Change in provisions1 3.5 Change in accounts receivable and prepayments (6.6) (20.3)% Effect from revenue hedging (finance lease hedge accounting) 1.3 Change in accounts payable and accrued liabilities 21.2 Loss on fixed assets disposal 0.3 Change in tax and restricted cash (0.1) Other 0.1 6,178 (1,013)

4,953

24,318 14,533 (1,824) 786 19,371

10,291

(4,242) 5,146

(13,727) 1,717 (836) 3,458

Profit Before D&A Interest Unrealized Other Adj. Cash Flows Working Net Cash Capital Proceeds Deposit Net Pre- Net Leasing Free Cash Free Cash Income Tax Expense Net FX Gain Before From Capital Flows From Expenditures From Sale of Placement delivery Deposits for Flow Q1 Flow Q1 Working Operating Changes Operating PPE and Return Payments for a/c in 2018 2017 Capital Activities and Income Activities Aircraft Operating Changes Before Tax Lease and Working Other Capital Changes

1 Change in provisions line mainly consists of provision for regular repairs and maintenance • Strong Operating and Free Cash Flow generation in Q1 2018 on the back of growing business volumes and solid operating performance despite lowest quarter of the year. 32 1. Market Update

2. Aeroflot Group Overview

3. Network and Schedule Overview

4. Fleet Overview

5. Financial Performance

6. Capital Structure and Liquidity

7. Appendix

33 Russian Air Transportation Market: Room for Growth

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

Despite fast growth of the recent years, Total CAGR 4.5% Russian airline industry still has International – (1.3)% | Domestic – 12.4% 20.3% promising growth prospects compared to European & US markets 150.0 Change 123.7 3.83 111.8 FY16-17 103.7 107.3 102.8 2.97 100.0 61.1 31.7% 65.5 54.7 46.4 64.4 1.41 50.0 0.81 11.0% 2.28 56.4 62.6 2.28 39.2 46.3 52.6 0.17 0.650.65 0.43 0.0 0.17 0.43 2013 2014 2015 2016 2017 UK USA Turkey Russia Domestic Routes International Routes (2) Airline PAX per capita per year, as of 2017 Domestic PAX per capita Notes: (1) Total local and foreign carriers’ traffic x.xx Sources: FAAT, Aeroflot estimates Sources: FAAT, Aeroflot estimates Railways facing increasing competition… … from airlines on domestic routes RZD long-haul rail traffic (mln PAX) Long-distance rail routes low over 10 Domestic air traffic (mln PAX) Domestic air traffic growth at a much mln PAX in the recent 5 years and higher pace than other means of over 30 mln PAX over a decade transportation 10.9% 7.3% (5.1)% (6.9)% 13.6% 3.6% 0.8% 62.6 (5.0)% 17.9% 56.4 110.7 10.8% 52.6 103.1 97.9 101.4 102.3 46.3 39.2

2013 2014 2015 2016 2017 2013 2014 2015 2016 2017

• 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. 34 Operating Data – Q1 2018

Aeroflot airline Aeroflot Group Indicator Unit Q1 2017 Q1 2018 Y-o-Y Q1 2017 Q1 2018 Y-o-Y

Passenger Traffic th PAX 7,015 7,394 5.4% 10,302 10,985 6.6%

International Routes th PAX 3,754 3,899 3.9% 4,578 4,888 6.8%

Domestic Routes th PAX 3,262 3,495 7.1% 5,724 6,097 6.5%

Passenger Turnover mln pkm 20,059 20,975 4.6% 26,934 28,743 6.7%

International Routes mln pkm 13,760 14,325 4.1% 16,531 17,568 6.3%

Domestic Routes mln pkm 6,299 6,651 5.6% 10,403 11,175 7.4%

Passenger Capacity mln ASK 25,805 27,419 6.3% 34,510 36,624 6.1%

International Routes mln ASK 17,723 18,912 6.7% 20,847 22,504 7.9%

Domestic Routes mln ASK 8,082 8,507 5.3% 13,663 14,120 3.3%

Passenger Load Factor % 77.7% 76.5% (1.2) p.p. 78.0% 78.5% 0.4 p.p.

International Routes % 77.6% 75.7% (1.9) p.p. 79.3% 78.1% (1.2) p.p.

Domestic Routes % 77.9% 78.2% 0.3 p.p. 76.1% 79.1% 3.0 p.p.

Tonne-Kilometres mln tkm 2,031 2,112 4.0% 2,683 2,857 6.5%

International Routes mln tkm 1,399 1,451 3.8% 1,650 1,752 6.2%

Domestic Routes mln tkm 633 661 4.4% 1,032 1,105 7.0%

Revenue Flights flights 55,507 60,232 8.5% 82,350 88,538 7.5%

International Routes flights 28,029 30,259 8.0% 33,765 36,869 9.2%

Domestic Routes flights 27,478 29,973 9.1% 48,585 51,669 6.3%

Flight Hours hours 162,023 174,577 7.7% 224,959 241,954 7.6%

• Strong operating results in Q1 2018: growing PAX flows and PLF on the back of balanced capacity expansion. 35 Key Operating Data of Subsidiary Airlines

Rossiya Airline Pobeda Airline Aurora Airline Indicator Unit Q1 2018 Y-o-Y Q1 2018 Y-o-Y Q1 2018 Y-o-Y

Passenger Traffic th PAX 1,862 (6.7)% 1,402 42.2% 327 7.8%

International Routes th PAX 611 10.5% 298 53.5% 80 2.7%

Domestic Routes th PAX 1,252 (13.3)% 1,104 39.4% 247 9.5%

Passenger Turnover mln pkm 4,856 0.3% 2,442 53.4% 470 6.5%

International Routes mln pkm 2,508 11.3% 620 54.7% 115 (0.9)%

Domestic Routes mln pkm 2,349 (9.2)% 1,822 52.9% 354 9.1%

Passenger Capacity mln ASK 5,909 (6.2)% 2,622 50.9% 674 1.1%

International Routes mln ASK 2,759 10.4% 665 44.5% 168 2.6%

Domestic Routes mln ASK 3,150 (17.1)% 1,956 53.2% 507 0.6%

Passenger Load Factor % 82.2% 5.3 p.p. 93.1% 1.5 p.p. 69.7% 3.5 p.p.

International Routes % 90.9% 0.7 p.p. 93.2% 6.2 p.p. 68.8% (2.4) p.p.

Domestic Routes % 74.6% 6.5 p.p. 93.1% (0.2) p.p. 70.0% 5.5 p.p.

Flight Hours hours 38,846 (5.3)% 18,738 49.2% 9,792 4.8%

36 Rossiya Airline: Q1 Highlights

Overview of the Initiative Mix of Scheduled and Charter Operations PAX, Q1 2017 PAX, Q1 2018 Intelligent capacity management to increase efficiency (domestic routes)

Continued growth in international segment backed by leisure demand Charter Charter 24% 26% Launched direct flight from St.Petersburg to London (Gatwick)

A-la-carte menu for own flights in VKO Scheduled Scheduled 76% 74% Plans to move operations to SVO in 2019

Passengers: international and domestic (mln PAX) PLF: international and domestic (%)

(6.7%) 0.7 p.p. 5.3 p.p. 6.5 p.p. (13.3%) 2,0 1,9 90,2% 90,9% 82,2% 76,8% 74,6% 1,4 68,1% 10.5% 1,3

0,5 0,6

Total International Domestic Total International Domestic 3M 2017 3M 2018 3M 2017 3M 2018 • Mid-single digit decline in PAX traffic in Q1 2018 due to efforts to maximize operational and financial efficiency in low season. • Plans to catch up with the annual goals during high season. 37 Q1 2018 Operating Data by Region (Scheduled Routes)

Americas Russia CIS

9.4 % 8.0 % 15.4 % 10.6 % 4.8 % 8.6 % 3.3 p.p. (1.2) p.p. (2.5)%

Passengers RPK ASK PLF (4.9)% (4.8) p.p. carried (6.4)% Passengers RPK ASK PLF Passengers RPK ASK PLF carried carried Performance of North and Central American Russian market is continuing to show consistent Group KPIs in CIS came under pressure as a market was supported by addition of 3rd growth in 2018 with strong PLF performance on result of subsidiaries’ operating program frequency to NY and increased ASK to other the back of efficient capacity management. optimization while Aeroflot airline showed steady destinations, which weighted on PLF. growth on all key routes including Kazakhstan. Europe Middle East Asia 12.6 % 9.8 % 3.5 % 8.6 % 3.5 % 3.2 % 3.1 % 2.5 % 1.7 %

0.6 p.p. (1.8) p.p. (0.3) p.p. Passengers RPK ASK PLF Passengers RPK ASK PLF Passengers RPK ASK PLF carried carried carried European market performance benefited from Operating performance of the region significantly Passenger traffic on key regional destinations launch of additional frequencies to key affected by increased frequencies to Istanbul, stable or trending towards growth (China), higher destinations and from new destinations opening Antalya and Dubai backed by strong demand to number of frequencies to Male supportive for during the last twelve months, putting slight the region overall performance of the region. pressure on PLF. Source: Data presented based on management accounting for scheduled flights of Aeroflot Group (excluding charter flights) • Strong operating performance on the scheduled routes was partially offset by selective adjustments in network due to internal and external reasons 38 Aeroflot Group Scheduled Flights Revenue Units

Q1 Yield (PAX Revenue / RPK) Q1 RASK (PAX Revenue / ASK) RUB RUB 5.1% 3.6% 3.1% 4.3% 1.6% 3.67 2.80 3.49 3.43 2.72 3.31 6.0% 2.65 3.05 3.09 2.55 2.44 2.30

Domestic International Total Domestic International Total Q1 Yield ex. Pobeda (PAX Revenue / RPK) Q1 RASK ex. Pobeda (PAX Revenue / ASK) RUB RUB

5.5% 5.2% 3.0% 5.2% 4.6% 3.72 3.58 2.81 3.52 8.7% 2.73 2.72 3.35 3.40 3.20 2.56 2.59

2.36

Domestic International Total Domestic International Total

% Y-o-Y increase 2017 2018 Note: Data presented based on management accounting figures, scheduled flights revenue is used for calculations.

• RUB dynamics and changing mix of operations at subsidiaries’ level affected RUB yields in Q1 2018. 39 Aeroflot Group Flights Revenue Units

Q1 Yield (Scheduled PAX Revenue / RPK) Q1 RASK (Scheduled PAX Revenue / ASK) RUB RUB

5.1% 3.6% 3.1% 4.3% 1.6% 3.67 2.80 3.49 3.43 2.72 3.31 6.0% 2.65 3.05 3.09 2.55 2.44 2.30

Domestic International Total Domestic International Total Q1 Yield (Scheduled + Charter PAX Revenue / RPK) Q1 RASK (Scheduled + Charter PAX Revenue / ASK) RUB RUB

3.7% 5.3% 4.7% 4.1% 2.1% 6.1% 2.76 3.54 2.66 2.65 3.36 3.37 3.24 2.46 2.53 3.05 3.11 2.32

Domestic International Total Domestic International Total % Y-o-Y increase 2017 2018 Note: Data presented based on management accounting figures, scheduled and charter flights revenue is used for calculations

• RUB dynamics and changing mix of operations at subsidiaries’ level affected RUB yields in Q1 2018. 40 Aeroflot Group Fleet Evolution

Aeroflot Group Fleet in Operation 1 Average Age of the Fleet 2

Aircraft Average Age 4.0 Hainan Airlines 4.9 7.7 Shandong Airlines 4.9 7.0 Spirit Airlines 5.3 6.4 6.5 6.2 6,1 Xiamen Airlines 5.3 Azul 5.5 325 336 China Eastern Airlines 5.5 289 232 251 247 Sichuan Airlines 5.5 Emirates Airline 5.6 Lion Air 5.7 Garuda Indonesia 5.8 Saudia 5.9 Etihad Airways 6.1 2013 2014 2015 2016 2017 3/31/2018 IndiGo 6.1 Qatar Airways 6.2 Aeroflot Airline Fleet in Operation 1 Air China 6.5 Shenzhen Airlines 6.5 Aircraft Average Age Singapore Airlines 7.5 5.2 Japan Airlines 9.6 American Airlines 10.3 4.4 4.2 4.1 4.1 4,0 Qantas 10.4 Lufthansa 11.4 224 232 189 Air France 12.9 165 140 150 Jazz 13.5 British Airways 13.7 United Airlines 14.5 Delta Air Lines 16.7 2013 2014 2015 2016 2017 3/31/2018 1 Excludes planes out of operation 2 Average Fleet Age of Selected Airlines with Active Fleet of 100+ Aircraft according to FlightGlobal data (as of March 2018) excluding planes out of operation • 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 41 Traffic Revenue Analysis

Traffic Revenue Breakdown by Type Revenue from Scheduled Passengers (RUB mln)1

Q1 2018 Q1 2018, % of Region Q1 2017 Q1 2018 Y-o-Y Sheduled sch. revenue Passenger Flights 90.5% Russia 30,562 33,959 11.1% 37.3%

Europe 22,362 25,352 13.4% 27.8%

Asia 16,087 17,465 8.6% 19.2% Cargo 3.8% CIS 4,058 4,464 10.0% 4.9% Charter Passenger Flights 5.8% North and Central 4,997 5,165 3.4% 5.7% America Scheduled Traffic Revenue by POS Middle East 4,269 4,702 10.1% 5.2% Q1 20182 Total 82,336 91,107 10.7% 100.0% Sales in Russia Sales abroad 32.6% 30.3% Total Passenger Revenue (Scheduled + Charter, RUB mln) Q1 2018, % of Segment Q1 2017 Q1 2018 Y-o-Y revenue Domestic 31,715 34,779 9.7% 35.9% Call center and ow n branches International 55,489 62,117 11.9% 64.1% 3.3% Online 33.8% Total 87,205 96,896 11.1% 100.0%

• In Q1 2018 revenue from scheduled passengers grew by 10.7% mainly driven by revenue growth on Russian, European and Asian markets. 42 1 Data presented based on management accounting 2 Data presented based on management accounting for Aeroflot airline and routes of subsidiary airlines under commercial management of Aeroflot Headcount Overview

Aeroflot Group Headcount by Category Other non-airline 31-Dec-2017 31-Mar-2018 % personnel Flight crew 11.9% 10.0% Cabin crew 11,259 11,661 3.6 %

Airport services 7,034 7,064 0.4 % Other airline personnel Technical maintenance and repair 4,702 4,914 4.5 % 13.9% Cabin crew Flight crew 3,846 3,969 3.2 % 29.3% Tickets and services sales, advertising 1,903 1,903 0.0 %

Other airline personnel (inc. airlines’ head office) 5,430 5,539 2.0 % Airport services Other non-airline subsidiaries’ personnel 4,696 4,719 0.5 % 17.8% 1 Tickets and services sales, Technical maintenance Total 38,870 39,769 2.3 % advertising and repair 1 Aeroflot Group headcount table excludes Aeroflot Aviation School headcount amounting to 181 employees as at 31.12.2017 4.8% 12.4% and 194 employees as at 31.03.2018. Traffic Revenue / Average Airlines’ Headcount PAX Traffic / Average Airlines’ Headcount (million RUB per employee, annualized to 31.03.2018) (passengers per employee, annualized to 31.03.2018)

6.0% 9.0%

14.3 1,503 13.5 1,379

31.03.2017 (LTM) 31.03.2018 (LTM) 31.03.2017 (LTM) 31.03.2018 (LTM)

• Improvement in labour productivity has resulted in increase of key performance indicators in Q1 2018. 43 • Aeroflot Group headcount increased by 7.5% vs. March 31, 2017. Reported and Adjusted Net Loss Analysis

Q1 Adjusted Net Loss Build-Up (RUB mln)

(11,543) (11,605)

1,052 (251) (863)

Reported Net Loss Q1 2018 Discounting of receipt of lease Change in the fair value of FOREX on PDP Adjusted Net Loss Q1 2018 deposits investments in equity securities

• One-off effects had limited influence on Aeroflot Group Q1 2018 financial results. 44 Net Income Evolution

(RUB mln)

10,091 (1,274) (15,476)

(5,339)

(11,543)

1,061 9 (253) (732) 98 272

Pressure from higher fuel prices, staff costs and operating lease expenses in Q1 2018.

Reported Net Traffic Revenue Other Revenue Operating Finance Income Finance Costs Hedging Result Revaluation of Taxation Other Reported Net Loss Q1 2017 Expenses Equity Loss Q1 2018 Investments and other • Increase in revenue generated by growing volumes was offset by a less favorable cost environment which resulted in adjustment of the bottom line. 45 Statement of Comprehensive Income

RUB mln, unless otherwise stated 2013 2014 2015 2016 2017 Q1 2017 Q1 2018 Traffic revenue 257,546 277,354 359,205 433,966 474,916 90,583 100,674 Other revenue 33,410 42,417 55,968 61,914 58,018 12,542 11,268 Revenue 290,956 319,771 415,173 495,880 532,934 103,125 111,942 Operating costs (271,161) (308,503) (371,066) (432,626) (492,523) (108,061) (123,538) Operating profit / (loss) 19,795 11,268 44,107 63,254 40,411 (4,936) (11,596) Sale and impairment of investments, net - - (9,159) (2,935) (144) (57) 215 Finance income 2,686 2,471 15,811 19,802 7,127 1,971 1,718 Finance costs (8,814) (28,399) (28,556) (9,443) (8,225) (2,038) (2,769) Hedging result - (1,723) (23,746) (12,310) (5,613) (1,391) (1,293) Share of results of associates 37 31 (17) 12 170 (11) (2) Result from disposal of subsidiaries - - - (5,099) - - - Profit / (loss) before income tax 13,704 (16,352) (1,560) 53,281 33,726 (6,462) (13,727) Income tax (6,369) (794) (4,934) (14,455) (10,666) 1,123 2,184 Profit / (loss) for the period 7,335 (17,146) (6,494) 38,826 23,060 (5,339) (11,543) EBITDAR 51,026 48,673 103,118 137,567 121,808 (13,742) 10,767 EBITDA 31,849 24,839 58,703 78,004 56,015 (1,136) (7,732) Traffic revenue growth 16.4% 7.7% 29.5% 20.8% 9.4% - 8,5% Revenue growth 15.0% 9.9% 29.8% 19.4% 7.5% - 11,1% Operating profit margin 6.8% 3.5% 10.6% 12.8% 7.6% - - EBITDAR margin 17.5% 15.2% 24.8% 27.7% 22.9% - - EBITDA margin 10.9% 7.8% 14.1% 15.7% 10.5% - -

46 Condensed Statement of Financial Position

Assets (RUB mln) 31.12.2013 31.12.2014 31.12.2015 31.12.2016 31.12.2017 31.03.2018 Cash and cash equivalents 18,660 26,547 30,693 31,476 45,978 59,105 Short-term financial investments 272 961 5,917 6,319 8,931 4,143 Accounts receivable and prepayments 55,691 56,769 76,317 78,172 92,932 96,220 Expendable spare parts and inventories 4,927 6,516 7,447 10,040 12,811 12,806 Property, plant and equipment 88,777 116,044 104,494 104,897 97,932 87,959 Prepayments for aircraft 12,318 29,241 35,291 27,830 13,089 9,679 Deferred tax assets 2,174 18,540 21,632 12,252 10,396 11,374 Goodwill 6,660 6,660 6,660 6,660 6,660 6,660 Other assets 19,705 16,440 26,743 21,661 34,601 47,419 Total Assets 209,184 277,718 315,194 299,307 323,330 335,365

Liabilities (RUB mln) Accounts payable and accrued liabilities 36,249 48,952 54,751 49,868 67,953 71,323 Unearned traffic revenue 16,334 22,469 28,691 39,044 43,695 65,473 Short-term loans and borrowings 5,029 17,343 54,085 9,309 - 175 Long-term loans and borrowings 8,377 6,860 14,375 11,058 3,181 3,355 Finance lease liabilities 63,348 132,366 145,020 107,143 84,674 73,923 Provisions for liabilities 1,655 4,845 6,917 10,791 16,949 19,503 Other liabilities 23,712 58,388 47,475 31,325 39,579 43,245 Total Liabilities 154,704 291,223 351,314 258,538 256,031 276,997 Hedge reserve (383) (48,657) (64,720) (34,187) (25,159) (23,650) Retained earnings 61,122 45,584 39,755 77,198 81,476 71,393 Total Equity 54,480 (13,505) (36,120) 40,769 67,299 58,368 Total Liabilities and Equity 209,184 277,718 315,194 299,307 323,330 335,365 47 Statement of Cash Flows

RUB mln, unless otherwise stated 2013 2014 2015 2016 2017 Q1 2017 Q1 2018

Operating cash flows before working capital changes 32,944 31,603 64,269 81,994 65,330 215 (4,242) Change in accounts receivable and prepayments (3,014) 4,658 (2,251) (6,191) (27,816) (5,359) (6,556) Change in expendable spare parts and inventories (1,019) (1,831) (1,216) (2,809) (2,672) (321) 7 Change in accounts payable and accrued liabilities 4,345 8,452 14,705 13,387 24,964 26,763 21,162 Operating cash flows after working capital changes 33,256 42,882 75,507 86,381 59,806 21,298 10,371 Income tax paid (4,260) (6,863) (6,041) (13,943) (13,019) (514) (102) Net cash flows from operating activities 28,945 35,977 69,664 73,647 47,432 20,798 10,291

Cash flows from investing activities:

Purchases of PPE and intangible assets (4,410) (6,160) (9,196) (10,222) (7,681) (961) (1,824) Prepayments for aircraft (7,154) (21,361) (22,708) (18,806) (7,931) (85) (1,883) Return of prepayments for aircraft 7,783 9,620 7,828 29,362 26,274 - 8,061 Net cash flows from/(used in) investing activities (3,599) (18,492) (38,770) 10,331 14,369 3,520 9,080 Cash flows from financing activities:

Repayment of loans and borrowings (14,579) (9,870) (36,267) (72,991) (17,417) (1,573) - Repayment of finance lease principal (9,795) (15,629) (19,455) (27,024) (15,513) (1,995) (5,356) Net cash used in financing activities (21,782) (14,673) (28,075) 80,495 46,821 (4,607) (6,142) Net increase in cash and cash equivalents 3,590 7,887 4,146 783 14,502 19,283 13,127 Cash and cash equivalents at the end of the period 18,660 26,547 30,693 31,476 45,978 50,759 59,105

48 Board of Directors

Corporate Governance Board of Directors

Personnel and Audit Strategy Name Remuneration Committee Committee Committee General Meeting of Audit Committee Shareholders (4 members) Mikhail Poluboyarinov Chairman of the Board of Directors

Vitaly Saveliev Personnel and Remuneration Lars Erik Anders Board of Directors Member Member Committee Bergstrom (6 members) Sergey Chemezov

Strategy Committee Executive Board Alexey Germanovich Member Chairman Member (10 members)

Igor Kamenskoy Member Member Chairman

Incorporated in Russia, PJSC Aeroflot is subject to Dmitry Peskov Member Member Russian corporate governance regulations and follows Dmitry Saprykin Member Russian Corporate Governance Code

Vasily Sidorov Chairman Member Member The Board of Directors is currently composed of 11 Yuri Slyusar Member members. The Board’s composition is well balanced

from members’ background perspective, number of Mikhail Voevodin Member Member independent, non-executive and executive directors Independent director according to the Russian Corporate Governance Code 49 Aeroflot Group Structure

PJSC Aeroflot(1)

Airlines Ancillary Companies

CJSC Aeromar JSC 75%-1 sh. 51% In-flight catering

(2) JSC 100% LLC Aeroflot-Finance 100% Financial services

JSC (2) 100% JSC Sherotel 100% Hotel services JSC Aurora Airlines 51%

Aeroflot Aviation School 100% LLC Pobeda Airlines 100% Education services

A-Technics 100% Maintenance

• 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 • 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) and 49.0% of LLC Transnautic Aero (cargo sales, in liquidation) Notes: (1) The Group as of March 31, 2018; Aeroflot Group consolidates all entities: PJSC Aeroflot and all subsidiaries. 50 (2) Non-operating entities Investor Relations Contacts

Address: 119002, Russia, Moscow, Arbat St. 10 E-mail: [email protected] Website: www.aeroflot.ru 51