Aeroflot Group Investor Presentation

September 2018 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 – One of the Largest Airline Groups in the World

1 Top-20 airline group globally, one of Europe’s leading airlines, #1 airline in Russia with leading positions on both domestic and international routes

2 Global network with 169 unique destinations (300+ routes) in 53 countries serviced by one of the youngest fleet globally1

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

Celebrating 4 Superior product and customer experience (Aeroflot airline 95 years awarded Four Star Airline status by Skytrax) in the world’s sky 5 Efficient operating model underpinned by effective yield and cost management

6 Experienced management team and international standards of corporate governance

Note: Network statistics are based on summer 2016 schedule. Youngest average fleet among airlines with fleet over 100 aircraft as of October 2016. 3 In the 1960s, flight attendant uniforms were styled in warm gray shades and the jacket was fastened with three shiny half-round buttons.

The flight attendant uniform in the 1970s consisted of a jacket with white trim and buttons with the Aeroflot logo.

Market Update 01 Russian Air Transportation Market Overview

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

Russian Air Transportation Market (million PAX) International Routes mln PAX, 6M 2018 Increase in PAX million inc. PAX of Russian and Foreign Carriers and int. transit PAX Domestic Routes

12.5% +1.9

60.8 12.3% 24.9 54.0 +1.9 14.8% +1.6 30.1 +0.6 26.2 35.2 +0.6 +0.2 11.9 31.4 14.4% 9.3 10.4% 7.1 15.8 18.0 3.9 3.6 27.8 30.7 10.1% 15.6 17.2 1 Aeroflot S7 Group Ural Airlines UTair Group Foreign Others 6M 2017 6M 2018 Q2 2017 Q2 2018 Group Carriers Aeroflot Group (million PAX) Source: TCH, Rosaviatsia, Company estimates / 1 UTair Group includes UTair, Utair-Cargo and Turuhan 8.2% Market Share (PAX)

6M 2017 6M 2018 24.9 9.6% 23.0 18.6% 19.6% 7.9% 11.1 13.9 10.2 12.7 -1.6 p.p. 8.9% 42.5% 40.9% 8.5% 5.7 6.2 14.4% 15.3% 12.7 13.8 10.1% 7.7 7.0 6.2% 6.5% 6.3%12.0% 5.9%11.8% 6M 2017 6M 2018 Q2 2017 Q2 2018 Market Dynamics Net of Aeroflot Group “Clean” Market Share of Aeroflot Group (Net of Intl.-Intl. Transit Traffic) 15.7% Total Market 14.1% 40.3% Aeroflot Group 38.7% 19.2% International 17.5% 12.0% Domestic 10.0% 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 8.2% in 6M 2018 with acceleration in Q2 2018. 5 Capacity Trends

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

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

25.7% 20.5% 16.4% 12.9% 12.2%

30.2 % 42.5 %

36.1 %

21.8 % 21.0%

17.2% 16.9 %

20.7 % 14.6 % 13.0 % 11.9% 15.3 % 10.6% 14.4 % 9.0% 12.2% 12.7% 10.8% 9.9% 7.4%

Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 International Domestic Total market Foreign carriers Russian carriers Source: TCH, Company calculations Source: SRS for foreign carriers, Rosaviatsia for domestic carriers before 2018, FAVT for domestic carriers in 2018, Company calculations. ASK is calculated based on published RPK and PLF data

• 6M 2018 are marked by further market recovery on the back of higher demand in both international and domestic segments and active capacity additions by market players. 6 A dark blue uniform was used in winter in the 1970s. It had a collarless jacket with five contrasting buttons and a white turtleneck-style blouse.

An elegant summer dress was designed in the 1970s for flights to hot countries.

Aeroflot Group Overview 02 Aeroflot Group Multi-Brand Strategy

Brand Business Model Focus Airport PAX Contribution1 PAX Growth

• Flagship carrier • Moscow 6M 2018 +6.4% (Sheremetyevo) • Premium product (4 Stars) 15.2 16.2 • High income and middle class Premium 16.2 65.3% • Hub and spoke model

6M 2017 6M 2018

• Regional and leisure product • Saint-Petersburg (3.8)% Focus on domestic flights (Pulkovo) 4.9 4.8 Regional • Selected international routes, • Moscow (Vnukovo) 4.8 19.1% and Charter mostly out of VKO airport in Moscow • Charter operations 6M 2017 6M 2018

• Moscow (Vnukovo) • Short and mid-haul flights +50.8% • Mostly domestic segment, 3.2 12.7% Low Cost selected international 3.2 2.1 routes • Point-to-point carriage 6M 2017 6M 2018

• Vladivostok, • The Far East airline flying on +5.7% Khabarovsk, short- and mid-haul direct Regional / Yuzhno-Sakhalinsk 0.69 0.73 international and domestic 0.7 2.9% Far-East routes • Flights to remote cities (local flights) 6M 2017 6M 2018 1 PAX contribution as of 6M 2018. Absolute number of passengers in million in green circle • 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 c1.0 million PAX

8 Pobeda Airline: Acceleration of Growth

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 • 20 Boeing 737-800 NG (30.06.2018) Moscow Perm Tyumen Krasnoyarsk • Plans for 4 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,  • 3.2 million PAX in 6M 2018 (+50.8% y-o-y) Karlovy Vary Irkutsk Key features Baden-Baden Volgograd • 6M 2018 PLF of 93.4% (+0.4 p.p. y-o-y) Memmingen Bratislava Rostov and Astrakhan Anapa • International RPK is 26% of total Pobeda traffic Bergamo Venice Nalchik achievements in Gelenzhik Nazran • Active development of intra-region flights, and international flights from Sochi 6M 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, % 50.8% -0.6 p.p.

94.3% +0.4 p.p. 3,156.4 +1.5 p.p. 93.7% 58.4% 93.4% 93.1% 93.1% 42.2% 2,093.7 1,754.7 1,401.7 91.6% 985.7 1,108.1

Q1 Q2 6M Q1 Q2 6M 2017 2018 2017 2018 • Pobeda, the only Russian LCC, is a timely value proposition to cost conscious passengers. 9 Corporate Strategy: New Vision

2025 Strategic Goals New Sources of Growth

2025 Strategic Target 2009 2017 Achievement

TOP-20 airlines by PAX globally 68 19

Increasing depth and Increasing population Improving efficiency of TOP-5 airlines by width of the network mobility, stimulation of operations, relocation of with increased focus passenger traffic and PAX in Europe 15 5* Moscow operations on connecting opening of new from VKO to SVO passengers. markets

Over 70 million To be achieved 11.1 mn 50.1 mn passengers by 2022

Over 30 million To be achieved 4.9 mn 27.6 mn domestic passengers by 2022 New Strategic Approach: Transfer traffic + LCC + Regional hubs

Source: Air Transport World, Company estimates. Note: 2009 traffic number for Aeroflot and subsidiaries (Nordavia and ). Aeroflot standalone – 8.6 mn PAX. * Among traditional carriers excluding LCCs.

• Aeroflot Group plans to set new strategic goals with particular focus on transfer traffic and regional hubs driven by active development of its premium and LCC products.

10 Passengers were especially delighted by the uniform of the 1970s, which consisted of a deep red French style suit, Russian shirt, felt hat and gloves.

A new summer uniform was introduced in the late 1980s – a light blue dress with a white collar symbolizing summer and the light blue sky.

Network Strategy 03 Aeroflot Group Network

# of Flights Evolution by Region1 Geographic Network (6M 2018, y-o-y)

Murmansk Salekhard Arkhangelsk New Urengoy Syktyvkar Khanty Mansiysk Saint Petersburg Surgut Nizhnevartovsk Yakutsk Nizhnekamsk Perm Russia 4.2 % Ekaterinburg Magadan 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 Orly Prague Belgorod Volgograd Aktobe Khabarovsk Munich Karaganda Europe 8.4 % Paris Chisinau Rostov Atyrau Ulan Bator Harbin Yu. Sakhalinsk Vienna Astrakhan Milan Gelenzhdik Stavropol Almaty Nice Rimini Simferopol New York Anapa Adler Aktau Shymkent Beijing Vladivostok Rome Burgas Sochi Makhachkala Bishkek Barcelona Tivat Varna Mineral Waters Baku Tashkent Istanbul Yerevan Samarkand Krasnodar Dalian Washington Antalya Tokyo Asia 3.1 % Teheran Seoul Larnaca Beirut Busan Los Angeles Tel Aviv Delhi Shanghai

North and Central Miami Dubai Guangzhou 15.8 % Havana Hong Kong America Hanoi

Bangkok CIS 3.2 % Ho Chi Minh City Phuket

Male Middle East 18.3 % Aeroflot routes Rossiya routes Total 5.9 % routes

Average Scheduled Flight Frequency per Route (Aeroflot Group ex-Pobeda) Stockholm Oslo Helsinki Increase in Group frequencies by 9.8% was predominantly supported by expansion of the number of frequencies in Tallinn domestic segment (+11.3%) and in the sector of long-haul routes (+20.4%). Riga Copenhagen MOSCOW Hamburg Kaunas Minsk Amsterdam Hannover Berlin 6M 2017 6M 2018 London Dusseldorf Warsaw Brussels Dresden Frankfurt Prague 11.3% Paris Stuttgart Vienna Chisinau 8.2% Zurich Munich Budapest 9.8% Geneva Lyon Milan Venice Belgrade 8.8% Nice Bucharest BolognaSplit Zagreb 14.6 20.4% Barcelona Sofia 13.1 13.2 Rome Tivat 12.6 12.2 Madrid Thessaloniki Istanbul Tbilisi 11.5 10.7 Valencia 9.8 Lisbon Alicante Athens 7.9 Malaga Antalya 6.6 Heraklion Larnaca

Tenerife

Scheduled International Domestic Medium-haul Long-haul Note: 1 Scheduled flights of Aeroflot Group (excluding Pobeda LCC) • 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 launched in the high season). 12 Network Expansion – Summer 2018 and Winter 2018/2019

Increased frequencies in New destinations New destinations to be launched in Winter 2018/2019 Summer 2018 (examples) launched in Summer 2018 season

Gothenburg Cairo (Egypt) Nalchik (Russia) Yekaterinburg 56 7 1 1 8 (Sweden) 3 flights per week 7 flights per week 7 flights per week Rostov 42 7 Vladikavkaz Saransk (Russia) 2 2 (Russia) 9 Ljubljana (Slovenia) 14 flights per week 7 flights per week 7 flights per week N.Novgorod 35 7

3 Naples (Italy) 3 Nazran (Russia) 10 Dublin (Ireland) Kaliningrad 38 4 7 flights per week 7 flights per week 7 flights per week

Ufa 35 7 Grozny (Russia) Osh (Kyrgyzstan) 4 Verona (Italy) 4 11 7 flights per week 7 flights per week 7 flights per week Prague 35 7 Makhachkala Denpasar 5 Burgas (Bulgaria) 5 (Russia) 12 (Indonesia) Rome 28 7 7 flights per week 14 flights per week 3 flights per week

Kyzylorda Destination in Milan 28 7 (Kazakhstan) Izhevsk (Russia) 13 6 6 Central Asia 4 flights per week 14 flights per week Istanbul 14 14 St.Pete – London Colombo (Sri Lanka) Destination in 7 (LGW) 7 14 5 flights per week South Asia Antalya 14 7 7 flights per week

Weekly frequency in summer schedule 2017 Addition in weekly frequencies starting from summer schedule 2018

• In Summer 2018 Aeroflot continued to increase frequencies both on the routes with already high capacity deployed as well as underserved routes. • Starting from Winter 2018/2019 schedule the Group targets 14 new destinations to be launched in Russia, Europe, and Asia. 13 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 16.0x 19.1x 21.2x 20.7x 22.3x 6M 2018 44.2% 42.9% 2.7% 42.1% 42.2% 24.2 24.3 39.7% 23.7 22.9 23.1 13.5% 12.1% 11.8% 12.0% 17.0 17.6 11.1% 16.1 16.2 16.8 4.6% 16.7% 16.9% 17.5% 17.3% 15.8% 5.3% 13.7 12.4 12.5 13.1 13.0 14.0% 13.1% 13.6% 13.0% 12.8%

2015 2016 2017 6M 2017 6M 2018 2015 2016 2017 6M 2017 6M 2018 Domestic - Domestic International Domestic Combined Connectivity ratio International - Domestic / Domestic - International 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 5.8%

From/To Paris London Vienna Stockholm Rome 2.0 2.1 Via Moscow 15:00 15:05 13:45 13:15 14:55 Tokyo 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 2015 2016 2017 6M 2017 6M 2018 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 destinations. 14 A uniform consisting of a dark blue plaid skirt and vest captured the spirit of the 1980s.

In 1994, the renowned fashion designer Valentin Yudashkin created a new uniform: a black suit with a red vest, white shirt and bow tie.

Operating Results and Yields 04 Operating Data – Q2 & 6M 2018

Aeroflot airline Aeroflot Group Indicator Unit Q2 Q2 6M 6M Q2 Q2 6M 6M Y-o-Y Y-o-Y Y-o-Y Y-o-Y 2017 2018 2017 2018 2017 2018 2017 2018

Passenger Traffic th PAX 8,230 8,829 7.3% 15,246 16,223 6.4% 12,660 13,871 9.6% 22,962 24,856 8.2%

International Routes th PAX 4,253 4,452 4.7% 8,007 8,351 4.3% 5,668 6,171 8.9% 10,245 11,059 7.9%

Domestic Routes th PAX 3,977 4,377 10.1% 7,239 7,872 8.7% 6,993 7,699 10.1% 12,717 13,797 8.5%

Passenger Turnover mn pkm 22,742 23,951 5.3% 42,801 44,926 5.0% 32,459 35,244 8.6% 59,392 63,987 7.7%

International Routes mn pkm 14,805 15,427 4.2% 28,565 29,752 4.2% 18,992 20,365 7.2% 35,523 37,932 6.8%

Domestic Routes mn pkm 7,937 8,524 7.4% 14,236 15,175 6.6% 13,466 14,879 10.5% 23,869 26,054 9.2%

Passenger Capacity mn ASK 27,484 30,206 9.9% 53,289 57,625 8.1% 39,209 43,358 10.6% 73,719 79,982 8.5%

International Routes mn ASK 18,168 19,906 9.6% 35,891 38,818 8.2% 22,895 25,457 11.2% 43,741 47,961 9.6%

Domestic Routes mn ASK 9,316 10,300 10.6% 17,398 18,807 8.1% 16,314 17,901 9.7% 29,977 32,020 6.8%

Passenger Load Factor % 82.7% 79.3% (3.5) p.p. 80.3% 78.0% (2.3) p.p. 82.8% 81.3% (1.5) p.p. 80.6% 80.0% (0.6) p.p.

International Routes % 81.5% 77.5% (4.0) p.p. 79.6% 76.6% (3.0) p.p. 83.0% 80.0% (3.0) p.p. 81.2% 79.1% (2.1) p.p.

Domestic Routes % 85.2% 82.8% (2.4) p.p. 81.8% 80.7% (1.1) p.p. 82.5% 83.1% 0.6 p.p. 79.6% 81.4% 1.7 p.p.

Tonne-Kilometres mn tkm 2,304 2,410 4.6% 4,335 4,522 4.3% 3,217 3,482 8.3% 5,899 6,340 7.5%

International Routes mn tkm 1,508 1,566 3.9% 2,907 3,018 3.8% 1,888 2,023 7.1% 3,539 3,775 6.7%

Domestic Routes mn tkm 796 843 6.0% 1,429 1,504 5.3% 1,329 1,460 9.9% 2,361 2,565 8.6%

Revenue Flights flights 60,238 67,149 11.5% 115,745 127,381 10.1% 92,508 102,475 10.8% 174,858 191,013 9.2%

International Routes flights 29,876 32,758 9.6% 57,905 63,017 8.8% 38,520 43,070 11.8% 72,285 79,939 10.6%

Domestic Routes flights 30,362 34,391 13.3% 57,840 64,364 11.3% 53,988 59,405 10.0% 102,573 111,074 8.3%

Flight Hours hours 172,911 190,834 10.4% 334,934 365,411 9.1% 252,280 279,969 11.0% 477,239 521,923 9.4%

16 Operating Data – July & 7M 2018

Aeroflot airline Aeroflot Group Indicator Unit July July 7M 7M July July 7M 7M Y-o-Y Y-o-Y Y-o-Y Y-o-Y 2017 2018 2017 2018 2017 2018 2017 2018

Passenger Traffic th PAX 3,301 3,621 9.7% 18,546 19,844 7.0% 5,327 5,987 12.4% 28,289 30,842 9.0%

International Routes th PAX 1,717 1,835 6.9% 9,724 10,186 4.8% 2,409 2,644 9.7% 12,655 13,703 8.3%

Domestic Routes th PAX 1,584 1,787 12.8% 8,823 9,658 9.5% 2,917 3,342 14.6% 15,634 17,139 9.6%

Passenger Turnover mn pkm 9,087 9,745 7.2% 51,888 54,672 5.4% 13,796 15,207 10.2% 73,188 79,194 8.2%

International Routes mn pkm 5,885 6,214 5.6% 34,450 35,966 4.4% 7,871 8,467 7.6% 43,394 46,399 6.9%

Domestic Routes mn pkm 3,202 3,531 10.3% 17,438 18,706 7.3% 5,926 6,739 13.7% 29,795 32,794 10.1%

Passenger Capacity mn ASK 10,188 10,914 7.1% 63,477 68,539 8.0% 15,175 16,669 9.8% 88,894 96,651 8.7%

International Routes mn ASK 6,711 7,148 6.5% 42,603 45,966 7.9% 8,781 9,513 8.3% 52,523 57,474 9.4%

Domestic Routes mn ASK 3,476 3,766 8.3% 20,874 22,573 8.1% 6,393 7,156 11.9% 36,371 39,177 7.7%

Passenger Load Factor % 89.2% 89.3% 0.1 p.p. 81.7% 79.8% (1.9) p.p. 90.9% 91.2% 0.3 p.p. 82.3% 81.9% (0.4) p.p.

International Routes % 87.7% 86.9% (0.8) p.p. 80.9% 78.2% (2.7) p.p. 89.6% 89.0% (0.6) p.p. 82.6% 80.7% (1.9) p.p.

Domestic Routes % 92.1% 93.8% 1.7 p.p. 83.5% 82.9% (0.6) p.p. 92.7% 94.2% 1.5 p.p. 81.9% 83.7% 1.8 p.p.

Tonne-Kilometres mn tkm 903 964 6.7% 5,239 5,486 4.7% 1,343 1,481 10.3% 7,243 7,821 8.0%

International Routes mn tkm 588 622 5.8% 3,495 3,640 4.2% 767 830 8.1% 4,306 4,605 6.9%

Domestic Routes mn tkm 316 342 8.4% 1,744 1,846 5.9% 576 652 13.1% 2,937 3,216 9.5%

Revenue Flights flights 21,853 24,604 12.6% 137,598 151,985 10.5% 34,331 38,667 12.6% 209,189 229,680 9.8%

International Routes flights 10,691 12,061 12.8% 68,596 75,078 9.4% 14,242 16,260 14.2% 86,527 96,199 11.2%

Domestic Routes flights 11,162 12,543 12.4% 69,002 76,907 11.5% 20,089 22,407 11.5% 122,662 133,481 8.8%

Flight Hours hours 62,396 69,070 10.7% 397,330 434,481 9.4% 93,770 104,522 11.5% 571,009 626,445 9.7%

17 6M 2018 Operating Data by Region (Scheduled Routes)

Americas Russia CIS

16.9 % 9.6 % 10.6 % 9.6 % 8.5 % 7.7 % 2.1 p.p. 0.2 % Passengers RPK ASK PLF (0.8)% (5.9) p.p. carried (2.7)% (1.6) p.p. 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

14.4 % 11.3 % 10.0 % 8.6 % 4.9 % 4.3 % 2.7 % 1.9 % 1.2 %

(2.1) p.p. (3.1) p.p. (1.2) 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 stronger competition on key routes as stable or trending towards growth (China), higher destinations and from new destinations opening, well as increased frequencies to Istanbul, Antalya number of frequencies to Male supportive for putting slight pressure on PLF. and Dubai backed by strong demand to the overall performance of the region. region 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 18 Aeroflot Group Scheduled Flights Revenue Units

Q2 Yield (PAX Revenue / RPK) Q2 RASK (PAX Revenue / ASK) RUB RUB 10.4% 5.7% 8.6% 6.6% 7.8% 6.6% 4.16 3.24 3.93 3.16 3.77 3.05 3.07 3.67 3.62 2.96 3.44 2.83

Domestic International Total Domestic International Total 6M Yield (PAX Revenue / RPK) 6M RASK (PAX Revenue / ASK) RUB RUB

8.0% 4.6% 6.5% 5.7% 7.4% 3.03 4.6% 3.93 2.90 2.92 3.64 3.71 2.78 2.77 3.42 3.48 3.27 2.59

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 Q2 and 6M 2018. 19 Aeroflot Airline Yield Dynamics (Monthly)

Aeroflot Airline Total Yield Aeroflot Airline International Yield

RUB/RPK, Change y-o-y in % RUB/RPK, Change y-o-y in % 23.8% 18.1%

9.8% 8.8% 6.2% 4.5%

(2.6)% (1.8)% (0.1)% (4.2)% (4.2)% (7.3)% 7.8% (9.5)% 6.2% Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 5.1% 4.4% 2017 2018 Aeroflot Airline Domestic Yield

RUB/RPK, Change y-o-y in % 8.1% 0.0% 0.4%

(1.3)% (2.3)% (2.4)% 4.1% 4.1% 3.7% 3.0% (4.8)% 2.1% 1.8% 1.7% (6.1)% 1.1% 1.1% 0.4%

(0.0)% Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 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) Note: Overall monthly yield performance of Aeroflot airline is consistent with the Group performance. Immaterial deviations of 1-2 p.p. in specific months can be the case, but yield performance trends are similar for the airline and the Group. • 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 6M 2018 international segment was the main driver of Aeroflot growth: yields were in higher single-digit growth mode during the period and in June yield dynamics reached +23.8% y-o-y supported by additional demand associated with FIFA World Cup. 20 Aeroflot Group Traffic Revenue Analysis

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

6M 2018 6M 2018, % of Q2 2017 Q2 2018 Y-o-Y Region 6M 2017 6M 2018 Y-o-Y Sheduled sch. revenue Passenger Flights 89.8% 44,726 53,126 18.8% Russia 75,288 87,085 15.7% 40.3%

28,470 34,738 22.0% Europe 50,832 60,090 18.2% 27.8%

15,280 16,903 10.6% Asia 31,367 34,368 9.6% 15.9% Cargo 3.4% 5,560 6,074 9.2% CIS 9,618 10,538 9.6% 4.9% Charter Passenger Flights 6.8% North and Central 6,481 7,771 19.9% 11,478 12,936 12.7% 6.0% America Scheduled Traffic Revenue by POS 5,564 6,250 12.3% Middle East 9,833 10,952 11.4% 5.1% 6M 20182 106,080 124,862 17.7% Total 188,416 215,969 14.6% 100.0% Sales in Russia Sales abroad 32.1% 31.6% Total Passenger Revenue (Scheduled + Charter, RUB mln) 6M 2018, % Q2 2017 Q2 2018 Y-o-Y Segment 6M 2017 6M 2018 Y-o-Y of revenue 46,108 55,044 19.4% Domestic 77,824 89,823 15.4% 38.7% Call center and own branches 67,486 80,412 19.2% International 122,975 142,529 15.9% 61.3% 3.5% Online 32.8% 113,594 135,456 19.2% Total 200,799 232,352 15.7% 100.0%

• In 6M 2018 revenue from scheduled passengers grew by 14.6% mainly driven by revenue growth on Russian, European and Asian markets.

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 21 The summer uniform of the 1980s took on the typical look of this time – a short-sleeve cropped jacket with bold shoulders. At that time, Aeroflot was transporting more than 120 million passengers per year. This achievement was entered in the Guinness Book of Records.

The scarlet uniform returned in the early 1990s.

Aircraft Fleet 05 Aeroflot Group Fleet Evolution

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

Aircraft Average Age 4.0 Hainan Airlines 4.8 7.7 Shandong Airlines 5.0 7.0 Xiamen Airlines 5.3 6.4 6.5 6.2 6,1 Sichuan Airlines 5.5 Spirit Airlines 5.5 350 325 China Eastern Airlines 5.6 289 232 251 247 Azul 5.8 Emirates Airline 5.9 IndiGo 5.9 Qatar Airways 5.9 LATAM Airlines Chile 6.4 Shanghai Airlines 6.4 2013 2014 2015 2016 2017 30.06.2018 Lion Air 6.5 Etihad Airways 6.6 Aeroflot Airline Fleet in Operation 1 Garuda Indonesia 6.6 EasyJet Europe 6.7 Aircraft Average Age Singapore Airlines 7.5 5.2 Japan Airlines 9.8 Qantas 10.7 4.4 4.2 4.1 4.1 4,0 American Airlines 10.8 Lufthansa 10.8 224 241 189 Air France 12.8 165 140 150 British Airways 13.8 Jazz 14.8 United Airlines 14.8 Delta Air Lines 16.5 2013 2014 2015 2016 2017 30.06.2018 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 July 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 23 Aeroflot Group Fleet Breakdown

Operated by Lease type Total as of Total as of Change vs. Aircraft Type Owned Aeroflot Subsidiaries Finance Operating 30-Jun-18 31-Dec-17 31-Dec-17 Wide-body 39 17 18 38 - 56 52 4 Airbus A330 22 - 8 14 - 22 22 - Boeing 777 17 8 10 15 - 25 21 4 Boeing 747 - 9 - 9 - 9 9 - Narrow-body (medium-haul) 157 78 18 217 - 235 222 13 Airbus A319 - 36 9 27 - 36 36 - Airbus A320 79 5 - 84 - 84 80 4 Airbus A321 37 - 9 28 - 37 38 -1 Boeing 737 41 37 - 78 - 78 68 10 Narrow-body (regional) 45 14 - 53 6 59 51 8 DHC 8 - 11 - 5 6 11 11 - DHC 6 - 3 - 3 - 3 3 - SSJ 100 45 - - 45 - 45 37 8 Total fleet1 241 109 36 308 6 350 325 25 Breakdown by Aircraft 2 Breakdown by Company 2 Breakdown by Ownership Type 2

Owned Wide-body Pobeda Finance 16% Aurora 6% 2% 7% 10%

Rossiya Narrow- 18% body (regional) Narrow- 17% body (medium- Aeroflot Operating haul) 88% 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 24 Fleet Expansion Strategy

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

Number of aircraft Type of 6M 2018 (Actual) Q3-Q4 2018 Current 409 (1) Delivery Phase out fleet Delivery Phase aircraft out

Wide-body (long-haul) 4 - 56 2 - 331325 A-330 - - 22 - - B-777 4 - 25 2 - B-747 - - 9 - -

Narrow-body (medium-haul) 22 (9) 235 14 (8)

A-319 - - 36 - (3)

A-320 9 (5) 84 2 (4)

A-321 3 (4) 37 2 -

B-737 10 - 78 10 (1)

Narrow-body (regional) 8 - 59 5 (1)

SSJ-100 8 - 45 5 -

DHC-8 - - 11 - (1)

DHC-6 - - 3 - -

TOTAL 34 (9) 350 21 (9)

Net additions (1) + 25 aircraft + 12 aircraft 2017 2018E 2019E 2020E 2021E 2022E

1 As of 30.06.2018, not including aircraft leased or subleased to other operator (1 An-24 and 5 An-148 ). Phase-out plans for Q3-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. 25 The renowned Russian fashion designer, Victoria Andreyanova, created a dark blue uniform in 2004.

A dark blue uniform for flights in autumn and winter was introduced in 2010 and ranked first in international ratings for being the most stylish and elegant flight attendant uniform.

Financial Results 06 Revenue and Cost Management Strategy in Challenging Environment

Brent oil price dynamics (RUB per barrell) 5,000

4,600 US sanctions against Russia, growth by 16% within two days US sanctions 4,200 against Russia, growth by 8% within one week 3,800 OPEC decision on cutting crude production, growth by 15% US and Saudi Arabia joint 3,400 Hurricane Harvey, sanctions against Iran, growth by 14% growth by 10% 3,000

2,600 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Source: Bloomberg Revenue and Cost Management Strategy

1 Active revenue management Efficiency based strategy 1

Initiatives to Exploiting ancillary revenue 2 improve Specific efficiency initiatives 2 opportunities financial

performance

Controlling costs Controlling Managing revenue Managing

3 Focus operational efficiency and network synergies Cost cutting programmes 3

• In order to deliver results and support profitability despite fuel price headwinds Aeroflot focuses both on exploring revenue opportunities and strict cost control, including dedicated cost cutting initiatives. 27 Focus on Revenue and Cost Efficiencies

Initiatives on the revenue side Initiatives on the cost side

More revenues in core business Company’s strategy is efficiency based

2018 initiatives to Examples: Examples: further strengthen • Multibrand approach already efficient • Increased day-to-day control over PLF and Efficiency Based revenue profitability Strategy • Standardized modern and fuel efficient fleet management • Optimization in booking classes and within • Effective fuel supply management fare families • Development of hub in SVO • Fuel surcharge

Additional services to enhance Strategic initiatives that particularly passengers’ convenience target efficiency New services to Examples: Long-Term Examples: extract more Efficiency ancillary revenue • Paid seat selection for lower booking • IT solutions for optimization of fuel loading (2018-2019) classes Initiatives • Introduction of paid upgrades • Optimization of loading processes for • Selling baggage online consumables • KPI based remuneration

Focus on efficiency of operations 2018 cost optimization initiatives

Improving Examples: Examples: operational • On-time performance efficiency Active Phase of • Optimization of SG&A and marketing budgets supported by new • Decrease in MCT to improve connectivity Cost-Cutting • Negotiating discounts with all counterparties markets • New routes will improve transfer potential of and service providers (including fuel) the network and increase utilization • On-board service and catering: optimizing budgets, loading efficiency (incl. food, water, amenity kits)

• Aeroflot has long-term commitment and track records of improving operational and financial efficiency achieved via various means - from fundamental principles of business strategy to dedicated efficiency programmes. • Active phase of revenue generation and cost-cutting initiatives launched in 2018 targets to partially absorb pressure on the Group’s costs coming from macroeconomic factors (fuel and exchange rates). 28 Financial Highlights: Q2 and 6M 2018

RUB mln Q2 2017 Q2 2018 Change 6M 2017 6M 2018 Change (where applicable)

12,660 13,871 9.6% Passenger Traffic (mln PAX) 22,962 24,856 8.2%

131,735 153,880 16.8% Revenue 234,860 265,822 13.2%

113,594 135,456 19.2% Traffic Revenue 200,799 232,352 15.7%

32,315 35,596 10.2% EBITDAR1 46,057 46,363 0.7%

24.5% 23.1% (1.4) p.p. EBITDAR1 margin 19.6% 17.4% (2.2) p.p.

16,539 14,354 (13.2)% EBITDA 15,403 6,622 (57.0)%

12.6% 9.3% (3.3) p.p. EBITDA margin 6.6% 2.5% (4.1) p.p.

8,229 6,315 (23.3)% Net income / (loss) 2,890 (5,228) n/m

• Financial results of 6M 2018 are explained by continuing pressure of macroeconomic factors – fuel and exchange rate dynamics. • Fuel cost pressure was partially offset by yield trends as well as cost-cutting initiatives.

1 EBITDAR = EBITDA + operating lease expenses. 29 Revenue Growth Decomposition

Revenue by Key Factors Revenue by Business Segments RUB mln RUB mln 13.2% 13.2%

7.0% + 4.7% + 1.4% + 0.1% 11.7% + 1.7% + 0.4% + (0.7)%

3,235 285 265,822 11,022 4,000 995 (1,586) 265,822 16,420 27,553 234,860 Domestic 234,860 Depreciation of yield up by 4.6%, Charter RPK up Cargo RUB in 6M 2018 by 8.6% y-o-y Mainly driven y-o-y by c2% vs. international volumes by lower USD and by up by 8.0% +10.6% ground Growth in c15% vs. EUR Growth across geographies: handling and operating Russian revenue + 15.5% maintenance metrics: International revenue +13.7% and refueling RPK + 7.7% services PAX + 8.2% revenue from third-parties

6M 2017 Volume Currency Pricing Other 6M 2018 6M 2017 Scheduled Charter Cargo Other 6M 2018 Passenger Passenger Revenue Flights Flights • Positive contribution of volume and pricing as well as 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

30 Operating Costs

Change Change Change Operating Expense Change % of Total OpEx Q2 2017 Q2 2018 ex. FX 6M 2017 6M 2018 ex. FX y-o-y (RUB mln If not stated otherwise) y-o-y (6M 2018) & NRE & NRE

28,790 43,843 52.3% 44.4% Fuel 56,217 77,885 38.5% 36.0% 29.3%

90,312 98,720 9.3% 6.0% Opex (ex. Fuel) 170,946 188,216 10.1% 8.8% 70.7%

Aircraft, traffic and passenger 24,807 26,726 7.7% 2.0% 45,961 48,634 5.8% 2.1% 18.3% servicing

19,736 20,255 2.6% 6.6% Staff 38,324 41,659 8.7% 10.8% 15.7%

15,776 21,242 34.6% 25.2% Operating lease 30,654 39,741 29.6% 27.0% 14.9%

7,503 11,790 57.1% 47.7% Maintenance1 15,682 20,259 29.2% 26.0% 7.6%

8,336 7,918 (5.0)% (8.2)% SG&A2 14,507 14,078 (3.0)% (4.7)% 5.3%

3,906 3,037 (22.2)% (22.2)% D&A and customs duties 7,706 6,901 (10.4)% (10.4)% 2.6%

10,248 7,752 (24.3)% (23.3)% Other expenses3 18,112 16,944 (6.4)% (4.9)% 6.4%

119,102 142,563 19.7% 15.3% Total Opex 227,163 266,101 17.1% 15.6% 100.0%

1 Normalized change in Maintenance expenses (including change in maintenance reserve) in 6M 2018 amounts to +26% y-o-y, in Q2 2018 +42% y-o-y. 2 Includes sales and marketing expenses and administration and general expenses. 3 Other expenses include Global Distribution Systems cost, reserves accrual and reversal, catering expenses, banks’ commissions and other operating income and loss. • In 6M 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. 31 Group Unit Costs

Q2 2017 Q2 2018 Change Operating Expense per ASK (CASK), RUB 6M 2017 6M 2018 Change 0.73 1.01 37.7% Fuel 0.76 0.97 27.7% 2.30 2.28 (1.1)% Opex (ex. Fuel): 2.32 2.35 1.5% 0.63 0.62 (2.6)% Aircraft, Traffic and Passenger Servicing 0.62 0.61 (2.5)% 0.50 0.47 (7.2)% Staff 0.52 0.52 0.2% 0.40 0.49 21.8% Operating Lease 0.42 0.50 19.5% 0.19 0.27 42.1% Maintenance 0.21 0.25 19.1% 0.21 0.18 (14.1)% SG&A 0.20 0.18 (10.6)% 0.10 0.07 (29.7)% D&A and Customs Duties 0.10 0.09 (17.5)% 0.26 0.18 (31.6)% Other Expenses 0.25 0.21 (13.8)% 3.04 3.29 8.2% Total Opex 3.08 3.33 8.0%

8.0% (1.3)% 6.6%

0.08 (0.02) (0.02) 0.04 (0.02) (0.03) (0.06) 0.21 0.02

0.00

3.33 3.28 3.08 3.08

Reported CASK Staff Fuel Maintenance Aircraft, Traffic Operating D&A and CD* Admin & Sales Other Costs Reported CASK FX NRE** CASK 6M 2018 Reported CASK 6M 2017 and Passenger Lease & Marketing 6M 2018 ex. FX and 6M 2017 * Customs duties Servicing NRE** ** NRE includes insurance refund for the aircraft and recovery of part of the provision created for compensation under long-term motivation programs • Cost per ASK increased by 8.0% from RUB 3.08 in 6M 2017 to RUB 3.33 in 6M 2018 on the back of fuel, maintenance and operating lease expenses pressure. 32 Fuel Cost Management

Flight Hours Fuel Consumption per ASK Fuel Consumption per RTK

(thousand hours) (gr/ASK) (gr/RTK) 9.4% (1.4)% (0.4)%

522 22.8 22.5 284.7 283.5

477

6M 2017 6M 2018 6M 2017 6M 2018 6M 2017 6M 2018 Aeroflot Airline Jet Fuel Price Comments (RUB per tonne of jet fuel) • Efficient fuel procurement: 1-year supply contracts in 50 000 airports across Russia 42 273 • Majority of fuel purchased in Russia and almost all 40 000 fuel at international airports supplied at formula-

32 671 linked price - Jet fuel priceIntl = NW Europe (FOB 2 3 30 000 Rotterdam) price x Discount x FX rate x 1.18 + Storage/Fuelling/Supply fees (if any of these applicable)

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 6M 1 • Increasing average fuel price. (WA) 2018 2017 Weighted average fuel purchase price of $710/ton 2018 (RUB 42,273/ton) in 6M 2018 vs $563/ton 56.6 56.8 57.1 60.9 62.3 62.8 USD/RUB (RUB 32,671/ton) in 6M 2017 (29.4% y-o-y increase in 69.1 65.7 66.9 71.8 77.0 75.9 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 6M 3 Assuming 18% VAT rate • Aeroflot is achieving efficiency gain in fuel costs as new aircraft are put into operation • Oil price and RUB fluctuations led to further upward pressure on jet fuel price in 6M 2018 33 Headcount Overview

Aeroflot Group Headcount by Category Other non-airline Flight crew 31-Dec-2017 30-Jun-2018 % personnel 12.3% 9.8% Cabin crew 11,259 11,821 5.0 % Other airline Airport services 7,034 7,163 1.8 % personnel Technical maintenance and repair 4,702 5,068 7.8 % 13.8% Cabin crew Flight crew 3,846 3,981 3.5 % 29.2% Tickets and services sales, advertising 1,903 1,918 0.8 % Other airline personnel (inc. airlines’ head office) 5,430 5,582 2.8 % Airport services 17.7% Other non-airline subsidiaries’ personnel 4,696 4,968 5.8 % Tickets and Technical Total1 38,870 40,501 4.2 % services sales, maintenance and 1 Aeroflot Group headcount table excludes Aeroflot Aviation School headcount amounting to 181 employees as at 31.12.2017 advertising repair and 196 employees as at 30.06.2018. 4.7% 12.5% Traffic Revenue / Average Airlines’ Headcount PAX Traffic / Average Airlines’ Headcount (million RUB per employee, annualized to 30.06.2018) (passengers per employee, annualized to 30.06.2018)

7.1% 5.4%

1,514 14.8 1,436 13.8

30.06.2017 (LTM) 30.06.2018 (LTM) 30.06.2017 (LTM) 30.06.2018 (LTM)

• Improvement in labour productivity has resulted in increase of key performance indicators in 6M 2018. • Aeroflot Group headcount increased by 6.7% vs. June 30, 2017. 34 EBITDA Evolution

(RUB mln) Total effect on revenue Total effect on costs ∑=30,962 RUB mln ∑=(39,745) RUB mln

Net volume and price effect Net FX effect Net volume and price effect ∑=19,939 RUB mln ∑=6,116 RUB mln ∑=(34,839) RUB mln 11,022 (4,906)

(20,264) Volume effect (4,792) RUB mln 3,235 285 16,420

Price effect (15,154) RUB mln

(3,329) (958) (8,279)

(4,070) 15,403 676 1,385 (1,305)

6,622 5,317

Reported Volume Pricing Other FX benefit on FX drag on Fuel* Staff* Aircraft, Operating Maintenance* Admin & Other OPEX* Reported NRE** Adjusted EBITDA 6M revenue costs Traffic and Leases* Sales & EBITDA 6M EBITDA 6M 2017 PAX* Marketing* 2018 2018 * Excluding currency impact ** NRE includes insurance refund for the aircraft and recovery of part of the provision created for compensation under long-term motivation programs • Positive FX impact was observed on revenue side on the back of weakening RUB, which outpaced pressure on operating costs. • Key drivers of EBITDA adjustment along with the growth in size and scale of operations were increase in jet fuel price and operating lease costs growth. 35 Operating and Free Cash Flows

(RUB mln)

Billion RUB 6M 2018 Billion RUB 6M 2018 Other adjustments before working capital changes, incl. 6.3 Working capital changes and income tax, incl. 31.4 Effect from revenue hedging (finance lease hedge accounting) 3.0 Change in accounts receivable and prepayments (6.2) (13.8)% Change in provisions 4.2 Change in accounts payable and accrued liabilities 38.5 Other (0.9) Change in expendable spare parts and inventories (1.6) Change in tax and restricted cash 0.7

15,160 (573)

31,354 (5,750) 3,120 (569)

61,788 53,289

41,901

6,274

363 2,874 10,545 6,394

(5,358)

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 Loss Before From Capital Flows From Expenditures From Sale of Placement delivery Deposits for Flow 6M Flow 6M 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 6M 2018 on the back of growing business volumes and solid operating performance. 36 Pobeda Financial Results

Increasing PAX Traffic RASK1 dynamics Growing Revenues of LCC Segment

Million passengers RUB

3.2 Q2 2017 Q2 2018 Change RUB mln 6M 2017 6M 2018 Change 2.20 2.28 2.1 4,991 8,656 73.4% Revenue 8,268 13,736 66.1%

1,905 2,396 25.8% EBITDAR1 2,043 2,629 28.7% 6M 2017 6M 2018 6M 2017 6M 2018

PAX up by 50.8% in 6M 2018 RASK up by 3.5% in 6M 2018 EBITDAR 38.2% 27.7% (10.5) p.p. 24.7% 19.1% (5.6) p.p. margin Increasing ASK CASK dynamics Billion ASK RUB 1,093 948 (13.2)% EBITDA 408 66 (83.8)%

6.0 2.27 2.09 EBITDA 3.8 21.9% 11.0% (10.9) p.p. 4.9% 0.5% (4.6) p.p. margin

874 911 4.2% Net income 400 175 (56.2)%

6M 2017 6M 2018 6M 2017 6M 2018

17.5% 10.5% (7.0) p.p. Net margin 4.8% 1.3% (3.5) p.p. ASK up by 60.6% in 6M 2018 CASK up by 8.3% in 6M 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 and active expansion of the fleet in 6M 2018. 37 Leverage and Liquidity

Debt Profile1 Net Debt / LTM EBITDA2

0.9 RUB mln 31-Dec-2017 30-Jun-2018 Change 0.9 0.7 Borrowings 3,181 3,524 10.8% 0.6

Finance Lease Liabilities 100,689 92,632 (8.0)%

Pension Liabilities 922 943 2.2% n/m Total Debt 104,792 97,099 (7.3)% 30-Jun-2017 30-Sep-2017 31-Dec-2017 31-Mar-2018 30-Jun-2018 Cash and Short Term 4 54,909 97,755 78.0% Investments RUB mln 30-Sep-2017 31-Dec-2017 31-Mar-2018 30-Jun-2018 2 48,925 49,883 29,470 (656) Net Debt 49,883 (656) n/m Net Debt EBITDA 2 54,147 56,015 49,420 47,234 Debt breakdown by currency Finance Lease Repayment Schedule (RUB billion)3

Borrowings Finance Lease 12% 2% 42.2

14.2 14.0 14.1 8.1

98% 88% 2018 2019 2020 2021 2022+ RUB USD 1 31-Dec-2017 exchange rate - 57.60 RUB per USD , 30-Jun-2018 exchange rate - 62.76 RUB per USD 3 Not including interest; future payments in dollars converted into roubles at exchange rate of 62.76 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 • Net Debt turned negative as at 30.06.2018 due to decrease in finance lease obligations as well as accelerated growth in cash position. • Cash position of RUB 98.0 billion and undrawn credit lines of RUB 91.7 billion 38 Appendix 07 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. 40 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. The Company plans to transfer all domestic flights to the new terminal by the beginning of Winter 2018/2019 season. 41 Key Operating Data of Subsidiary Airlines

Rossiya Airline Pobeda Airline Aurora Airline Indicator Unit 6M 2018 Y-o-Y 6M 2018 Y-o-Y 6M 2018 Y-o-Y

Passenger Traffic th PAX 4,751 (3.8)% 3,156 50.8% 726 5.7%

International Routes th PAX 1,834 10.6% 690 72.0% 183 2.2%

Domestic Routes th PAX 2,916 (11.0)% 2,466 45.7% 543 6.9%

Passenger Turnover mn pkm 12,318 2.2% 5,641 61.2% 1,102 5.7%

International Routes mn pkm 6,443 10.3% 1,471 72.5% 267 0.0%

Domestic Routes mn pkm 5,876 (5.4)% 4,169 57.6% 835 7.7%

Passenger Capacity mn ASK 14,760 (2.4)% 6,037 60.6% 1,560 1.1%

International Routes mn ASK 7,172 10.1% 1,582 65.3% 390 3.2%

Domestic Routes mn ASK 7,588 (11.9)% 4,455 58.9% 1,170 0.4%

Passenger Load Factor % 83,5% 3.8 p.p. 93,4% 0.4 p.p. 70,6% 3.1 p.p.

International Routes % 89,8% 0.2 p.p. 93,0% 3.8 p.p. 68,5% (2.2) p.p.

Domestic Routes % 77,4% 5.3 p.p. 93,6% (0.8) p.p. 71,3% 4.9 p.p.

Flight Hours hours 91,897 (2.2)% 42,794 59.0% 21,821 1.9%

42 Aeroflot Group Blended Flights Revenue Units

Q2 Yield (Scheduled + Charter PAX Revenue / RPK) Q2 RASK (Scheduled + Charter PAX Revenue / ASK) RUB RUB 11.1% 7.2% 9.8% 7.8% 8.0% 8.8% 3.95 3.84 3.07 3.16 3.12 3.70 2.95 3.42 3.55 3.50 2.83 2.90

Domestic International Total Domestic International Total 6M Yield (Scheduled + Charter PAX Revenue / RPK) 6M RASK (Scheduled + Charter PAX Revenue / ASK) RUB RUB 8.5% 7.4% 5.7% 6.7% 8.1% 5.7% 3.76 2.97 2.91 3.63 2.81 2.81 3.45 3.46 3.38 2.72 3.26 2.60

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 Q2 and 6M 2018. 43 Aeroflot Group Scheduled Flights Revenue Units

6M Yield (PAX Revenue / RPK) 6M RASK (PAX Revenue / ASK) RUB RUB

8.0% 4.6% 6.5% 5.7% 7.4% 3.03 4.6% 3.93 2.90 2.92 3.64 3.71 2.78 2.77 3.42 3.48 3.27 2.59

Domestic International Total Domestic International Total

6M Yield ex. Pobeda (PAX Revenue / RPK) 6M RASK ex. Pobeda (PAX Revenue / ASK) RUB RUB 4.5% 8.4% 6.6% 8.1% 7.6% 9.8% 3.04 3.97 2.99 3.85 2.90 2.91 3.66 3.66 3.56 2.80 3.40 2.64

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 6M 2018. 44 Statement of Comprehensive Income

RUB mln, unless otherwise stated 2013 2014 2015 2016 2017 6M 2017 6M 2018 Traffic revenue 257,546 277,354 359,205 433,966 474,916 207,982 240,530 Other revenue 33,410 42,417 55,968 61,914 58,018 26,878 25,292 Revenue 290,956 319,771 415,173 495,880 532,934 234,860 265,822 Operating costs (271,161) (308,503) (371,066) (432,626) (492,523) (227,163) (266,101) Operating profit / (loss) 19,795 11,268 44,107 63,254 40,411 7,697 (279) Sale and impairment of investments, net - - (9,159) (2,935) (144) (70) 107 Finance income 2,686 2,471 15,811 19,802 7,127 4,783 2,124 Finance costs (8,814) (28,399) (28,556) (9,443) (8,225) (4,159) (4,369) Hedging result - (1,723) (23,746) (12,310) (5,613) (2,748) (2,984) Share of results of associates 37 31 (17) 12 170 34 43 Result from disposal of subsidiaries - - - (5,099) - - - Profit / (loss) before income tax 13,704 (16,352) (1,560) 53,281 33,726 5,537 (5,358) Income tax (6,369) (794) (4,934) (14,455) (10,666) (2,647) 130 Profit / (loss) for the period 7,335 (17,146) (6,494) 38,826 23,060 2,890 (5,228) EBITDAR 51,026 48,673 103,118 137,567 121,808 46,057 46,363 EBITDA 31,849 24,839 58,703 78,004 56,015 15,403 6,622 Traffic revenue growth 16.4% 7.7% 29.5% 20.8% 9.4% 7.6% 15.6% Revenue growth 15.0% 9.9% 29.8% 19.4% 7.5% 4.9% 13.2% Operating profit margin 6.8% 3.5% 10.6% 12.8% 7.6% 3.3% - EBITDAR margin 17.5% 15.2% 24.8% 27.7% 22.9% 19.6% 17.4% EBITDA margin 10.9% 7.8% 14.1% 15.7% 10.5% 6.6% 2.5%

45 Condensed Statement of Financial Position

Assets (RUB mln) 31.12.2013 31.12.2014 31.12.2015 31.12.2016 31.12.2017 30.06.2018 Cash and cash equivalents 18,660 26,547 30,693 31,476 45,978 87,785 Short-term financial investments 272 961 5,917 6,319 8,931 9,970 Accounts receivable and prepayments 55,691 56,769 76,317 78,172 92,932 83,106 Expendable spare parts and inventories 4,927 6,516 7,447 10,040 12,811 14,407 Property, plant and equipment 88,777 116,044 104,494 104,897 97,932 89,347 Prepayments for aircraft 12,318 29,241 35,291 27,830 13,089 10,545 Deferred tax assets 2,174 18,540 21,632 12,252 10,396 10,716 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 50,070 Total Assets 209,184 277,718 315,194 299,307 323,330 362,606

Liabilities (RUB mln) Accounts payable and accrued liabilities 36,249 48,952 54,751 49,868 67,953 98,847 Unearned traffic revenue 16,334 22,469 28,691 39,044 43,695 80,056 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 3,349 Finance lease liabilities 63,348 132,366 145,020 107,143 84,674 15,333 Provisions for liabilities 1,655 4,845 6,917 10,791 16,949 21,272 Other liabilities 23,712 58,388 47,475 31,325 39,579 106,029 Total Liabilities 154,704 291,223 351,314 258,538 256,031 325,061 Hedge reserve (383) (48,657) (64,720) (34,187) (25,159) (29,242) Retained earnings 61,122 45,584 39,755 77,198 81,476 63,358 Total Equity 54,480 (13,505) (36,120) 40,769 67,299 37,545 Total Liabilities and Equity 209,184 277,718 315,194 299,307 323,330 362,606

46 Statement of Cash Flows

RUB mln, unless otherwise stated 2013 2014 2015 2016 2017 6M 2017 6M 2018

Operating cash flows before working capital changes 32,944 31,603 64,269 81,994 65,330 19,326 10,546 Change in accounts receivable and prepayments (3,014) 4,658 (2,251) (6,191) (27,816) (16,516) (6,197) Change in expendable spare parts and inventories (1,019) (1,831) (1,216) (2,809) (2,672) (870) (1,596) Change in accounts payable and accrued liabilities 4,345 8,452 14,705 13,387 24,964 49,106 38,521 Operating cash flows after working capital changes 33,256 42,882 75,507 86,381 59,806 51,046 41,274 Income tax paid (4,260) (6,863) (6,041) (13,943) (13,019) (761) (644) Net cash flows from operating activities 28,945 35,977 69,664 73,647 47,432 50,288 41,900

Cash flows from investing activities:

Purchases of PPE and intangible assets (4,410) (6,160) (9,196) (10,222) (7,681) (2,445) (5,750) Prepayments for aircraft (7,154) (21,361) (22,708) (18,806) (7,931) (166) (2,750) Return of prepayments for aircraft 7,783 9,620 7,828 29,362 26,274 11,909 17,910 Net cash flows from/(used in) investing activities (3,599) (18,492) (38,770) 10,331 14,369 11,500 11,388 Cash flows from financing activities:

Repayment of loans and borrowings (14,579) (9,870) (36,267) (72,991) (17,417) (3,145) (44) Repayment of finance lease principal (9,795) (15,629) (19,455) (27,024) (15,513) (5,591) (9,893) Net cash used in financing activities (21,782) (14,673) (28,075) 80,495 46,821 (12,181) (12,009) Net increase in cash and cash equivalents 3,590 7,887 4,146 783 14,502 49,579 41,807 Cash and cash equivalents at the end of the period 18,660 26,547 30,693 31,476 45,978 81,055 87,785

47 Reported and Adjusted Net Loss Analysis

6M Adjusted Net Loss Build-Up (RUB mln)

(5,228)

(7,099) 1,092 (228) (1,257)

(500) (978)

Reported Net Loss Discounting of receipt Change in the fair FOREX on PDP Insurance refund Recovery of part of Adjusted Net Loss 6M 2018 of lease deposits value of investments (aircraft) the provision created 6M 2018 in equity securities for compensation under long-term motivation programs

• One-off effects had limited influence on Aeroflot Group 6M 2018 financial results.

48 IFRS 16 (Accounting of Leases)

• IFRS 16 will replace IAS 17 and is mandatory • Operating lease will be divided between depreciation and interest, implying increase in EBITDA applicable starting January 2019 • Adoption of the standard may increase volatility of companies’ PL • All lease contracts will be recognized on balance • Aeroflot is analysing the implications of the new standard and sheet solutions to avoid increased volatility

BALANCE SHEET INCOME STATEMENT

IAS 17 IFRS 16 IAS 17 IFRS 16 Balance sheet P&L line Finance Operating line Finance Operating All leases All leases leases leases leases leases Revenue Assets - Operating costs (excluding - Expense - D&A) EBITDA Liabilities $$ - $$$$$$$ Depreciation and amortisation Depreciation - Depreciation

Operating profit Off balance sheet - rights/ obligations Finance costs Interest - Interest $$$$$ Profit before tax

• Introduction of IFRS 16 will materially change financial statements of all companies with rental liabilities. • Aeroflot will introduce IFRS 16 starting from 1 January 2019 and is currently preparing for its implementation and analyzing potential effect and solutions to minimize volatility.

4933 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 Member Committee Bergstrom (7 members) Sergey Chemezov

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

Igor Kamenskoy Member Chairman Member

Incorporated in Russia, PJSC Aeroflot is subject to Dmitry Peskov Member Member Russian corporate governance regulations and follows Roman Pakhomov Member Chairman 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 50 Aeroflot Group Legal Structure

PJSC Aeroflot(1)

Airlines Ancillary Companies

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

(2) JSC Donavia 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 June 30, 2018; Aeroflot Group consolidates all entities: PJSC Aeroflot and all subsidiaries. (2) Non-operating entities 51 Address: 119002, Russia, Moscow, Arbat St. 10 E-mail: [email protected] Website: www.aeroflot.ru