A EROFLOT – R USSIAN A IRLINES

ACHIEVEMENTS AND GOALS Today – An Overview

1 #1 in one of the largest markets globally with leading positions on both domestic and international routes

Global network with 153 unique destinations (300+ routes) 2 in 51 countries serviced by one of the youngest fleets globally

3 Multi-brand offering to appeal to a broad customer spectrum across different geographies

4 Superior product and customer experience (Aeroflot – 4-star airline by Skytrax)

5 Efficient operating model underpinned by effective yield and cost management

6 Experienced management team and international standards of corporate governance

1 Note: network statistics is based on summer 2015 schedule Transformation of the Aeroflot Group

x 3.5X x 3.9X (8.6 yrs) > (20.0 %) + 8.1 p.p. >15 yrs

39.4 415.2 78% mn bn RUB >30.0 6.4 yrs 23.1 78% 11.1 106.1 mn bn RUB gr / ASK gr / ASK

FLEET FUEL PASSENGER LOAD PAX REVENUE AGE COMSUMPTION FACTOR

2009 2015

Over the course of the last 7 years the Group has shown an extraordinary operational and financial transformation.

Note: fleet age for 2009 as of the beginning of the year. Average age of 6.4 in 2015 is for Aeroflot Group (for comparison purposes). Aeroflot’s average fleet age is 4.3 years. 2 Russian Carrier With a Global Network

One of the youngest fleets of any major airline group … … operating a global network

Murmansk 4.4 Arkhangelsk Novy Urengoy

St. Petersburg Syktyvkar Surgut Nizhnevartovsk Yakutsk Stockholm Ekaterinburg Tomsk Kaliningrad Tyumen Krasnoyarsk Omsk P. Kamchatsky Abakan Hamburg Minsk Irkutsk Chita Blagoveshchensk Dusseldorf Berlin Voronezh Hainan 4.6 Prague Astana Aktobe Paris Vienna Atyrau Karaganda Ulaanbaatar Geneva Rostov Yu. Sakhalinsk Milan Astrakhan Bishkek Nice Varna Anapa Aktau Shymkent Almaty New York Tivat Barcelona Rome Istanbul Baku Khudzhand Samarkand 4.8 Washington Teheran Larnaca Beirut Los Angeles Deli Shanghai

Miami Dubai Guangzhou Havana 5.3 Hanoi

Bangkok Ho Chi Minh Qatar Airways 5.6 Phuket

Male Etihad Airways Aeroflot routes 5.8 Rossiya routes routes Stockholm Oslo Helsinki Tallinn routes Air China 6.2 routes Riga Copenhagen MOSCOW Hamburg Vilnius Amsterdam Berlin Emirates Airline 6.4 London Dusseldorf Warsaw Brussels Dresden Frankfurt Prague Paris Stuttgart Vienna Zurich Munich Budapest Turkish Airlines 6.5 Geneva Zagreb Milan Venice Belgrade Bucharest Nice Bologna Barcelona Sofia Rome Tivat Singapore Airlines 7.4 Madrid Thessaloniki Istanbul Tbilisi Athens Malaga Antalya American Airlines 11.0 Larnaca

This map is saved in Dealworks folder 1873584-001.pptx Lufthansa 11.1 Tenerife 11.6 258 aircraft1 British Airways 12.6 carrying over 40m passengers2 United Airlines 13.5 to 153 unique destinations3 Delta Airlines 17.1 3 in 51 countries 3 Notes: 1 As of 31 December 2015; 2 Aeroflot Group PAX in FY 2016; 3 Winter 2015-2016 schedule Aeroflot Group Network Development Strategy

Growing Connectivity of operated flights1 ... Average weekly frequency per route New Markets and Routes 12.7x 13.5x 16.0x Growth 13.9x  New routes in 1H2016 (vs 1H 2015): 18.8x 6M 2016  Domestic routes: Stavropol, 4.0% Saratov, Magadan 22.9  International routes: Alicante, 22.8 Valencia, Lyon 20.3 21.9 19.3 2.2% 16.1 16.0 14.4 15.7 0.0%  New markets: Kazakhstan (Aktau, 13.2 Aktobe, Almaty, Astana, Atyrau, 12.4 11.5 12.4 12.4 Shymkent) 10.7

2013 2014 2015 6М 2015 6М 2016 Incremental revenue in H1 2016 from new destinations opened in LTM 3.3 bn International Domestic Combined Connectivity ratio Total revenue in H1 2016 from new … backed by convenient location of the hub (SVO) destinations added in 2013 – H1 2016 amounted to 8.1 bn RUB Shortest geographical New Products distance Moscow

addresses the LCC market segment that previously was underserved in

Incremental revenue from Pobeda From/To Paris London Vienna Stockholm Rome amounted to Via Moscow 15:00 15:05 13:45 13:15 14:55 Tokyo RUB 4.7 bn in 1H2016 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 Hong Kong Via Dubai 18:30 17:10 15:30 16:00 15:45 Source: Company data, IMF, Eurostat, RITA, Russian State Statistics Service, Rosaviatsia. 1 Data for Aeroflot airline’s own flights. Increasing flight frequencies improves connectivity and supports Aeroflot’s traffic growth in Sheremetyevo. 4 A Successful Multi-Brand Approach

RegionalPRODUCT product FOR FAR for EASTFar East

POSITIONING PREMIUM PRODUCT MID-PRICE REGIONAL / CHARTER PRODUCT LOW-COST PRODUCT PRODUCT FOR FAR EAST

Scheduled flights Scheduled and charter flights Scheduled flights Scheduled flights

 Hub and spoke  Point-to-point (P2P) flights within Russia  P2P flights via Moscow  Passenger flights in the Far model, international  Limited connectivity  P2P flights within regions East and domestic flights  Popular international destinations  High passenger load factor  Local flights to remote Business model  High frequency  Charter flights to the most popular tourist destinations and fleet utilization destinations within the region  Economy and (international and domestic)  Economy class  Economy and business class business class  Economy and business class

Fleet  Narrow-body aircraft  Narrow-body aircraft  Narrow-body aircraft  Narrow-body aircraft  Wide-body aircraft  Wide-body aircraft

 Business tourism Target group  Visiting friends and  Visiting friends and relatives  Tourism  Visiting friends and relatives relatives  Tourism  Visiting friends and relatives  Tourism  Tourism  Business tourism  Business tourism

 Moscow:  Moscow: Vnukovo  Moscow: Vnukovo  Vladivoskok Focus airport Sheremetyevo  Saint-Petersburg: Pulkovo   Yuzhno-Sakhalinsk

~50% ~20-30% ~9% ~20% Share of int. (international routes in PAX1 (Asian (extensive flights launched countries) geography) (mainly within the CIS) in late 2015) and including charter

Multi-brand product offering to capture customers in key market segments: from premium to low-cost.

1 Data as of H1 2016. 5 Remarkable Operational and Financial Performance

Outstanding operational performance …

 13.4% growth of passenger carried in 2015 Fifth-highest RPKs among  5.6 p.p. increase in market share European carriers in 2015 Fifth-largest European carrier by  Load factor of 78.3% revenue (World Airline Rankings  8.8% CAGR passenger carried 2010-2015 (domestic: 12.5%; 2015) international: 5.8%)

World’s most punctual airline March 2015; … driving resilient financial results May, November 2014

 29.8% increase in total revenue  4x increase in operating profit  Market-leading EBITDAR and EBITDA margins (24.8% and Second-highest operational 14.1%, respectively) profitability among legacy European airline groups in 2015 6 A Reputation For Excellence In Safety And Service

Best Russian Airline 2013, 2014, 2015 Awarded 2016 Official Carrier

Readers’ Choice Award Best Airline in Eastern Europe Best Russian Airline 2011, 2013, 2014, 2015, 2016 2013, 2014, 2015

7-star safety rating

Best European Airline Member Best Airline in Russia and CIS since Best Business-Class on Mid- 2006 Range Flights 7 Digital take-off

Before 2009 2010 – 2015 2016 –2020

XX% - share of automated business processes Support systems Flight management system (ASOU PD) Other

35% 100% 100% B2P

Unstructured data

Initial Digitalization IT-Systems Consolidation Cutting-Edge Technology Deployment

 Fragmented IT-systems impeding  Implementation of the three core platforms  Broad use of Big Data analytics operational gains (Sabre, SAP and Lufthansa) allowed to optimize IT infrastructure in use and reduced operating  Personalized targeting of customer  Core IT-systems for aviation operations expenses communication support are developed  Over 50% of passengers use Aeroflot digital  Successful implementation of the project services (e.g. tickets sales, online check-ins etc) could create incremental revenue for the Group

8 Goals for the future

Ranking in Ranking in 2025 Strategic Targets 2025 (Achievement Estimate) 2009 2015

TOP-20 airlines by PAX globally 68 24

10 TOP-5 airlines by PAX in Europe 15 7

Over 70 million passengers 11.1 mn 39.4 mn

Over 30 million domestic passengers 4.9 mn 23.4 mn

Note: 2009 traffic number for Aeroflot and subsidiaries (Nordavia and Donavia). Aeroflot standalone – 8.6 mn PAX. 9 Source: Flightglobal, Company estimates. Come fly with us!