sign in sign up
<<
Home , Aeroflot, Aurora (airline), Donavia, Orenair, Rossiya Airlines, SAT Airlines

GROUP INVESTOR PRESENTATION

December 2016 Disclaimer

232 Chart Colours 235 240 This document has been prepared by PJSC “Aeroflot” (the “Company”). By attending the meeting where the presentation is made, or by reading the 182 presentation slides, you agree to the following. 196 204 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 135 157 the basis of, or be relied on in connection with, any contract or investment decision. 179 No reliance may be placed for any purpose whatsoever on the information contained in this document or on assumptions made as to its completeness. 0 No representation or warranty, express or implied, is given by the Company, its subsidiaries or any of their respective advisers, officers, employees or 112 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 192 contents.

59 This document may include forward-looking statements. These forward-looking statements include matters that are not historical facts or statements 100 regarding the Company’s intentions, beliefs or current expectations concerning, among other things, the Company’s results of operations, financial 135 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 0 that forward-looking statements are not guarantees of future performance and that the Company’s actual results of operations, financial condition and 176 80 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 22 update any forward-looking statements to reflect events that occur or circumstances that arise after the date of this presentation. 44 66

1 40 120

0 Message text 128 0

255 Highlight 0 0

Table line colour 178 2 178 178 Aeroflot – #1 Russian Carrier with a Global Network

232 Chart Colours 235 240

182 #1 in one of the world’s largest markets with leading positions on 196 1 204 both domestic and international routes, one of Europe’s leading

135 157 179 2 Global network with 153 unique destinations (300+ routes) in 51 countries serviced by one of the youngest fleet globally1 0 112 192 Multi-brand offering to appeal to a broad customer spectrum across 59 3 100 geographies 135

0 176 Superior product and customer experience (Aeroflot airline 80 4 awarded Four Star Airline status by Skytrax) 22 44 66 5 Efficient operating model underpinned by effective yield and cost 1 management 40 120

0 Experienced management team and international standards of corporate Message text 128 6 0 governance

255 Highlight 0 0

Table line colour 178 Note: Network statistics are based on summer 2016 schedule. Youngest average fleet among airlines with fleet over 100 aircraft as of October 2016. 3 178 178 232 Chart Colours 235 240

182 196 204

135 157 179 RUSSIAN AIR TRANSPORTATION MARKET UPDATE 0 112 192

59 100 135

0 176 80

22 44 66

1 40 120

0 Message text 128 0

255 Highlight 0 0

Table line colour 178 4 178 178 Russian Air Transportation Market: Room for Growth

232 Chart Colours 235 240 Russian Total Passenger Traffic Growth, mn PAX(1) Trips per Capita (2)

Despite fast growth of the recent years, 182 Total CAGR 8.8% 3.54 Russian airline industry still has 196 International – 5.8% | Domestic – 12.5% (4.1)% promising growth prospects compared 204 to European & US markets 150.0 Change 2.81 103.7 111.8 107.2 FY14-15 135 91.6 100.0 157 80.1 (16.6)% 1.66 70.5 2.18 1.51 (3) 179 65.5 54.7 1.2 56.2 64.4 50.0 47.3 41.2 13.6% 0.73 0 1.20 39.2 46.3 52.6 0.61 112 29.2 32.7 35.4 0.32 0.36 192 0.0 2010 2011 2012 2013 2014 2015 Domestic Routes International Routes UK USA EU-27 59 Notes: (1) Total local and foreign carriers’ traffic (2) Airline PAX per capita per year, as of 2015 x.xx Domestic PAX per capita 100 Sources: FAAT, Aeroflot estimates (3) 2025E 135

0 Railways facing increasing competition… … from airlines on domestic routes 176 80 RZD long-haul rail traffic (mn PAX) Long-distance rail Domestic air traffic (mn PAX) But domestic routes posted first airlines continue (4.0)% 1.5% single digit traffic 13.6% to outperform (5.0)% 17.9% 22 (7.1)% increase in 4 years rail sector. 116.5 (4.8)% 44 114.8 110.7 in row. 10.8% 52.6 16.2% 5.5% 66 102.8 4.5% 8.1% 97.9 (5.1)% 12.0% 46.3 43.4 39.2 41.2 75.9 79.3 35.4 1 32.7 40 120

0 Message text 128 2011 2012 2013 2014 2015 9M 2015 9M 2016 2011 2012 2013 2014 2015 9M 2015 9M 2016 0

255 • Russian market is well positioned for long-term growth on the back of still low penetration, additional potential from Highlight 0 0 ongoing structural changes and increasing propensity to travel by air as well as advantageous geographical location. Table line colour 178 5 178 *In the charts, tables and text of this presentation, immaterial deviations in calculation of % change, subtotals and totals are due to rounding 178 Aeroflot Group vs Air Transportation Market: 9M 2016

232 Chart Colours 235 240 Passenger Traffic: Market vs Aeroflot Group Change in Airlines’ Passenger Numbers

Russian Air Transportation Market (PAX) mn PAX, 9M 2016 Increase/decrease in PAX million 182 Domestic Routes International Routes 196 (4.1%) 204 (7.9%) +2.8

111.8 107.2 135 85.5 32.8 157 78.7 0.4 179 (16.6)% +2.0 (0.9) 65.5 54.7 (20.4)% 44.3 35.3 (1.0) +0.7 14,4 0 10.2 11.1 13.6% 5.5% 112 52.6 43.4 5,2 5.0 192 46.3 41.2

59 2014 2015 9M 2015 9M 2016 Aeroflot S7 Group Group Foreign Others 100 Aeroflot Group (PAX) Group Carriers 135 Source: TCH, Rosaviatsia, Company estimates 13.4% 9.2% Increasing Market Share1 (PAX) 0 39.4 176 34.7 32.8 9M 2015 9M 2016 80 30.1 (6.2)% 16.0 11.0% 16.4% 18.3% 17.1 12.3 13.6 35.2% 22 +6.5 p.p. 41.7% 32.5% 8.0% 14.0% 44 23.4 14.1% 66 17.6 17.8 19.2 5.0% 6.3% 9M 2015 9M 2016 7.3% 6.7% 1 2014 2015 12.6% 12.9% 40 9.5% 120 Market Dynamics Net of Aeroflot (12.0)% Total Market (17.2)% 0 (20.2)% International (32.4)% Message text 128 0 2.0% Domestic 3.7% Foreign Airlines Source: TCH, Company estimates Other Russian Airlines 255 Note: Incl. foreign carriers’ traffic. Highlight 0 • Aeroflot Group succeeded to convert market instability and competitors’ weakness into an advantage and continued 0 outperforming Russian market in 9M 2016 growing PAX by 9.2% with acceleration on both domestic and international routes. Table line colour 178 6 178 178 Capacity Optimization by Russian and Foreign Airlines

232 Chart Colours 235 1 240 Capacity to and from Russia (ASK) was optimized … … on Domestic and International Routes… ASK change, y-o-y 9M 2016 vs. 9M 2015, billion ASK 182 196 13.6% 13.3% Jan Feb Mar Apr May Jun Jul Aug Sep 204 9.3% 7.6% 8.3% 9.3% 8.8% 5.5% 6.0% 7.1%

135 157 (6.9)% (6.7)% 179 (10.8)% (10.5)% (10.0)% (11.2)% (10.8)% (10.7)% (9.8)% (12.9)% (17.5)% 0 (20.8)% (1.2) (1.8) 112 (15.8)% 192 (19.0)%(19.5)% (18.5)% (18.5)% (18.3)% (18.9)% (23.4)% (2.6) (2.8) 59 Jan Feb Mar Apr May Jun Jul Aug Sep 9M (3.7) (3.7) 100 2016 (3.7) (4.0) (3.8) 135 Aeroflot Group Market (All Airlines) Market excl Aeroflot Group Domestic routes International routes 0 176 … by both Russian and Foreign Carriers However the Trend is Reversing 80 9M 2016 vs. 9M 2015, billion ASK ASK (bn and y-o-y dynamics) (9.1%) Jan Feb Mar Apr May Jun Jul Aug Sep 22 (10.7%) 44 (10.5%) 66

1 40 (1.2) 120 (1.8)

(2.6) (2.8) 0 Message text 128 (3.7) (3.7) (3.7) (3.8) 0 (4.0) Q1 Q2 Q3 Q4 (Exp)

255 Russian carriers Foreign carriers 2015 2016 Highlight 0 0 • In Q3 2016 there were no major capacity optimizations besides y-o-y base effect which starts to reverse on the back of improving macroeconomic situation, however capacity expansion is expected to be strongly correlating with demand. Table line colour 178 7 178 Source: TCH, Rosaviatsia, Company estimates; 1 Based on data for domestic carriers only. 178 AEROFLOT GROUP BUSINESS AND STRATEGY OVERVIEW Key Pillars of Aeroflot’s Corporate Strategy

232 Chart Colours 235 240

182 196 204

135 2025 Strategic Goals 157 179  Top-5 European airline by revenue and passenger traffic 0 112  Top-20 global airline by revenue and passenger traffic 192  Total annual passenger traffic of more than 70 mn passengers, including 30 mn on the Russian market 59  Share of transit passengers through Aeroflot’s hub in at least 32% 100 135  Market expansion based on implementation of multi-brand strategy

0 176 80

22 44 66

1 Multi-brand Global Strategic Infrastructure 40 Strategy Network Partnerships Expansion 120

0 Message text 128 0

255 Highlight 0 0

Table line colour 178 9 178 178 Multi-Brand Strategy: 2016 Vision

232 Chart Colours 235 240 Brand Business Model Focus Airport PAX Contribution1 PAX Growth 182 • Flagship carrier • Moscow 9M 2016 9M 2016

196 • Premium product (Sheremetyevo) y-o-y 10.4% 204 Premium • High income and middle class 21.7 66.1% • Hub and spoke model 21.7 135 19.7 157 179 • Focus on domestic regional flights • Moscow (Vnukovo) (7.5)% • Interregional flights • Saint-Petersburg 6.8 0 (Pulkovo) 20.7% 112 Regional • Selected international routes, mostly 7.4 6.8 192 out of VKO airport in Moscow • Rostov-on-Don • Orenburg • Natural connectivity in VKO and LED 59 100 • The Far East airline flying on short- • 135 21.1% and mid-haul direct international and • 3.2% Regional / domestic routes • Yuzhno-Sakhalinsk 1.1 0 Far-East • Regional flights to remote cities in 1.1 0.9 176 the Far East 80 • Short and mid-haul flights • Moscow (Vnukovo) 22 • Mostly domestic segment, selected 50.7% 44 9.9% Low Cost international routes 3.3 66 3.3 • Point-to-point carriage 2.2

1 40 • Premium segment Total PAX (mn) 120 • Middle segment 9.2% 100% Group • Low cost segment 32.8 32.8 0 • Synergies from specialized subsidiaries 30.1 Message text 128 0 • Multi-brand offering to capture customers in every market segment from premium to budget. 255 Highlight 0 • In 2016 additional steps taken to simplify operational structure of regional companies – merger of Rossiya airline 0 with and airlines – targeting subsidiaries’ efficiency enhancement.

178 Source: Company data 10 Table line colour 1 178 PAX contribution as of 9M 2016. Absolute number of passengers in million in green circle 178 Airline: Group’s Low Cost Carrier

232 Chart Colours 235 240 Overview of Pobeda Pobeda’s Network

• Operating from Vnukovo airport (3rd Moscow airport by PAX) 182 Network • Network comprising 36 routes (22 unique for the Group) 196 204 • Additional expansion to international destinations (6 countries) Yaroslavl Kirov • 12 737-800 NG Moscow N. Novgorod Perm Krasnoyarsk Cheboksary Ekaterinburg • Single class cabin Nizhnekamsk 135 Fleet Chelyabinsk 157 Ulyanovsk • 189 seats per plane Cologne 179 2014 • December - First flight performed from Moscow to Memmingen Volgograd Bratislava Rostov Astrakhan 0 2015 Bergamo 112 • March - Seasonal summer route announcement Gelenzhik Nazran Tivat Nalchik Makhachkala 192 • April - Pobeda becomes Top-10 airline in Russia Girona Vladikavkaz Key milestones • June - Cumulated PAX reached 1 mn 59 • December - Launch of international flights Larnaca Paphos • December - Cumulated PAX reached 3 mn 100 Routes from Moscow Route from Samara Routes from Rostov 135 2016 • Development of international network and intra-region flights Routes from St.-Petersburg Route from Makhachkala Routes from Ekaterinburg 0 Operating Results Additional Customers Both on Domestic and Intl. Destinations 176 80 thousand PAX thousand PAX +783,0 3,261.1 22 3,261.1 44 1,270.3 +314,7 2,163.3 66 1,039.4 93.6% 1 40 86.1% 87.6% 120 951.4

0 81.7% Message text 128 1Q 2016 2Q 2016 3Q 2016 9M 2016 9M 2015 International Domestic 9M 2016 0 Seat Load Factor, % Share of Segments (%) 255 Pobeda’s seat load factor on domestic routes in 9M 2016 (89.7%) exceeds the one of - International 9.6% Aeroflot Group (85.0%) that contributes to the efficiency of LCC Highlight 0 100% Domestic 90.4% 0 • Pobeda, the only Russian LCC, is a timely value proposition to cost conscious passengers. • High pace of domestic expansion maintained in 9M 2016 with tapping into new international markets. Table line colour 178 11 178 178 Aeroflot Group Network

232 Chart Colours 235 1 240 # of Flights Evolution by Region Geographic Network (9M 2016, y-o-y) 182 Murmansk 196 Arkhangelsk Novy Urengoy Syktyvkar Saint Petersburg Russia (3.4)% Surgut Nizhnevartovsk 204 Nizhnekamsk Kemerovo Perm Ekaterinburg MOSCOW Samara Novosibirsk Kaliningrad Krasnoyarsk Cologne Ufa Kazan P. Kamchatsky Kazan Abakan Hamburg Berlin Minsk Voronezh Chelyabinsk Dusseldorf Saratov MinVody Magnitogorsk Astana Barnaul Frankfurt Praha Orenburg Europe 5.0 % Paris Kishinev Volgograd Aktobe Khabarovsk Karaganda Ulaanbaatar Munich Gelendzhik Rostov Atyrau Yu. Sakhalinsk Vienne Astrakhan 135 Milan Bergamo Varna Bishkek Adler Aktau Shymkent Almaty New York Nice Rimini Anapa Vladivostok Barcelona 157 Rome Tivat Bourgas Baku (Burgas) Eerevan Samarkand Asia 14.2 % Washington Larnaca Teheran 179 Beirut Pusan Los Angeles Deli Shanghai

Miami Dubai Guangzhou Americas 8.9 % Havana 0 Hanoi

112 Bangkok CIS (21.5)% Ho Chi Minh 192 Phuket

Male and Africa (2.9)% Aeroflot routes 59 Rossiya routes 100 Total (1.9)% routes 135 Average Scheduled Flight Frequency per Route2 0 Oslo Helsinki 176 Increase in Group frequencies by 3.8% was supported by rapid expansion of the number of frequencies in international Tallinn segment (+7.5%) due to additional rights distribution at the end of 2015 as well as launch of new destinations 80 Copenhagen MOSCOW Hamburg Vilnius Amsterdam Hannover Berlin 9M 2015 9M 2016 London Dusseldorf Warsaw 0.8% Brussels 22 Frankfurt 44 3.8% Paris Stuttgart Vienna 3.8% Zurich Munich Budapest Geneva Zagreb 66 7.5% Lyon Milan Venice Belgrade 12.6 12.7 Nice Bologna Split 11.7 8.6% Barcelona Sofia 10.8 11.2 11.3 Rome Tivat Madrid Thessaloniki Istanbul Tbilisi 1 9.0 9.6 Valencia Alicante Athens 40 6.4 6.9 Malaga 120 Heraklion Larnaca

This map is saved in Dealworks folder 0 1873584-001.pptx Tenerife Message text 128 0 Scheduled International Domestic Medium-haul Long-haul • Moderate growth of destinations, focus on increase in frequencies on scheduled routes 255 Highlight 0 • Aeroflot Group operates flights to 153 unique destinations in 51 countries (in 2016 summer schedule) 0 • In the first nine months of 2016 Aeroflot airline added flights to a number of European destinations (Alicante, Valencia, Lyon) Table line colour 178 Note: 1 Scheduled flights of Aeroflot Group (excluding Pobeda LCC); 2 Average weekly frequency per route (excluding Pobeda LCC); in 2016 the Group adopted new frequency per route calculation 12 178 methodology and previous periods were recalculated retrospectively 178 Aeroflot Airline Domestic and International Transit

232 Chart Colours 235 1 240 Growing Connectivity of Aeroflot Flights ... … Results into a Flexible Approach to Transit Flows

Average weekly frequency per route – Aeroflot airline Growing share of transit of Aeroflot airline in Sheremetyevo 182 12.7x 13.5x 16.0x 17.2x 19.0x Growth 196 9M 2016 44.2% 44.9% 204 39.2% 42.5% 0.2% 35.5% 22.9 13.5% 13.6% 23.1 23.1 10.7% 12.5% 135 20.3 7.9% 157 19.3 16.2 16.1 179 (0.8%) 16.7% 16.7% 16.1 16.0% 16.7% 17.0% 14.4 0 13.2 (0.3%) 112 12.4 12.5 11.5 12.4 14.0% 14.6% 192 10.7 11.6% 11.8% 13.0%

59 2013 2014 2015 9М 2015 9М 2016 2013 2014 2015 9M 2015 9М 2016 100 International Domestic Combined Connectivity ratio Domestic - Domestic 135 International - Domestic / Domestic - International International - International

0 … Backed by Convenient Location of Aeroflot Hub Increase in International – International Traffic 176 Shortest 80 Total Aeroflot airline int. – int. transit traffic, thousand PAX geographical distance 3.6 Moscow 22 44 2.8 2.8 66 2.7 2.4

1 40 120 From/To Paris London Vienna Stockholm Rome CAGR 22.3% 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 0 Via Moscow 14:05 14:10 12:50 12:20 14:00 Message text 128 Shanghai Via Dubai 17:25 17:50 16:10 16:40 16:25 0 Via Moscow 15:00 14:40 13:20 12:50 14:30 2013 2014 2015 9M 2015 9М 2016 Hong Kong Via Dubai 18:30 17:10 15:30 16:00 15:45 Less focus on international-international transit market in 9M 2016 is attributable to a pickup in point-to-point demand 255 Source: Company data, IMF, Eurostat, RITA, Russian State Statistics Service, Rosaviatsia. 1 Highlight 0 Data for Aeroflot airline’s own flights; Aeroflot adopted new frequency per route and connectivity ratio calculation methodology and previous periods were recalculated retrospectively 0 • 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 Table line colour 178 13 178 destinations. 178 Demise - Integration Update

232 Chart Colours 235 240 1 2 3 New … require additional fleet to … and provide with ability to hire 182 routes… service enlarged network… more employees 196 204

135 B777 157 179 B747 4.3k 36 employees routes 0 B737 112 192 А321

59 100 Initial Plans Initial Plans Initial Plans 135 • New slots and designations for 56 routes • Aeroflot Group planned to take up to 34 • Aeroflot Group plans to employ ~6,000 out of 141 international routes serviced by aircraft from Transaero fleet 0 former Transaero personnel 176 Transaero previously • 10 B737 and 6 A321 from the order book • 60% of employees to be hired – flight 80 • Capacity addition on non-regulated will be delivered in 2016-2017 crew domestic market 22 44 Current Status Current Status Current Status 66 • Launched flights to new destinations (incl. • Aircraft that were exploited by Transaero • After assessment of applications received charter program) and increased capacity are joining Rossiya fleet 4,255 were hired: 1 on the existing utilizing most of the 40 • 7 B747 and 5 B777 phased-in in 9M 2016 ~550 cabin and 2,030 cockpit crew granted rights 120 (used aircraft) ~720 engineers • Negotiations on the slots with a number • 5 A321 from the order book phased-in in ~740 ground handling and security 0 of airports underway 9M 2016 (new aircraft) Message text 128 ~ 220 administrative and other • Rights for 13 routes were returned to 0 • Expected additions: 2 B747 (used a/c) authorities voluntarily, seven + 10 B737 and 1 A321 (new a/c) destinations not extended after one year 255 Highlight 0 period 0 • Additional designations received from the Russian aviation authorities (previously exploited by Transaero Table line colour 178 airline that left the market after the bankruptcy) provide Aeroflot Group with further growth opportunities. 14 178 178 OPERATING PERFORMANCE Aeroflot Group Monthly Operating Results

232 Chart Colours 235 240 Passenger Traffic Dynamics PAX Load Factor Change (PLFM 2016 – PLFM 2015 for respective month) 9.1 182 6.4% 196 5.4% 11.6% 204 5.8% 7.4 8.8% 135 12.4% 8.8% 6.0 11.6% 157 17.1% 14.4% 12.2% 5.4 5.2 179 26.8% 5.0 5.1 8.5% 9.2% 4.1 4.3 0 6.2% 7.9% 3.9 4.6 3.4 112 2.7% 7.3% 3.3 192 2.8 4.3 2.5 2.3 2.0 1.9 2.5% 1.6 1.8 59 1.0% 1.2% 1.3 100 19.1% 24.8% 17.2% 9.5% 8.5% 3.9% 0.8 0.8 135 0.3 0.4 0.4

0 Jan Feb Mar Apr May Jun Jul Aug Sep Jan Feb Mar Apr May Jun Jul Aug Sep 176 80 Total Domestic International x.x% Change, y-o-y Domestic, PAX International, PAX

22 Despite deteriorating international traffic trends for the overall industry, the Aeroflot Group and its flagship carrier Aeroflot airline succeeded to increase PLF 44 Group posted strong performance on international routes and outperformed above market average (82.4% for AG vs 82.1% for the market) driven by higher 66 market growth on domestic destinations. PLF growth numbers on the back of more efficient capacity management. 9M 2016 Aeroflot Group Aeroflot Airline Russian Airlines 9M 2016 Aeroflot Group Aeroflot Airline Russian Airlines 1 40 Total PAX + 9.2% + 10.4% - 7.9% Total PLF + 3.1 p.p. + 1.8 p.p. + 1.1 p.p. 120 Domestic PAX + 8.0% + 12.4% + 5.5% Domestic PLF + 5.3 p.p. + 4.6 p.p. + 3.3 p.p. International PAX + 11.0% + 8.5% - 20.4% International PLF + 1.5 p.p. + 0.5 p.p. - 0.5 p.p. 0 Message text 128 Note: Numbers on this slide are presented only for Russian carries (for comparison purposes between PAX and SLF for the market) 0 Source: Rosstat, TCH, Aeroflot estimates

255 • Strong double digit PAX growth on the back of solid domestic market numbers. Highlight 0 0 • Acceleration of growth on international routes on the back of stabilizing macro and due to low base effect of 2015. • Positive PLF numbers throughout the 9M 2016 on the back of domestic and international routes PLF dynamics. Table line colour 178 16 178 178

Operating Data – 3Q & 9M 2016

232 Chart Colours 235 240 Aeroflot airline Aeroflot Group

3Q 3Q 9M 9M 3Q 3Q 9M 9M 182 Y-o-Y Y-o-Y Y-o-Y Y-o-Y 2015 2016 2015 2016 2015 2016 2015 2016 196 Indicator Unit 204 Passenger Traffic th PAX 7,689 8,272 7.6% 19,669 21,710 10.4% 12,199 13,132 7.6% 30,053 32,826 9.2%

135 International Routes th PAX 3,836 4,276 11.4% 10,193 11,059 8.5% 4,716 5,534 17.3% 12,274 13,626 11.0% 157 179 Domestic Routes th PAX 3,852 3,996 3.7% 9,476 10,651 12.4% 7,483 7,598 1.5% 17,779 19,200 8.0%

Passenger Turnover m pkm 21,705 23,664 9.0% 55,871 61,991 11.0% 29,975 34,219 14.2% 74,454 84,229 13.1% 0 112 International Routes m pkm 13,061 15,031 15.1% 35,302 39,579 12.1% 15,165 18,625 22.8% 40,184 46,902 16.7% 192 Domestic Routes m pkm 8,645 8,634 (0.1%) 20,570 22,412 9.0% 14,810 15,594 5.3% 34,270 37,327 8.9% 59 100 Passenger Capacity m ASK 25,231 26,950 6.8% 69,650 75,553 8.5% 35,152 38,610 9.8% 93,941 102,225 8.8% 135 International Routes m ASK 15,386 17,532 13.9% 44,502 49,619 11.5% 17,927 21,494 19.9% 50,934 58,324 14.5%

0 Domestic Routes m ASK 9,845 9,419 (4.3%) 25,148 25,935 3.1% 17,225 17,116 (0.6%) 43,007 43,901 2.1% 176 80 Passenger Load Factor % 86.0% 87.8% 1.8 p.p. 80.2% 82.0% 1.8 p.p. 85.3% 88.6% 3.4 p.p. 79.3% 82.4% 3.1 p.p.

International Routes % 84.9% 85.7% 0.8 p.p. 79.3% 79.8% 0.5 p.p. 84.6% 86.7% 2.1 p.p. 78.9% 80.4% 1.5 p.p. 22 44 Domestic Routes % 87.8% 91.7% 3.9 p.p. 81.8% 86.4% 4.6 p.p. 86.0% 91.1% 5.1 p.p. 79.7% 85.0% 5.3 p.p. 66 Tonne-Kilometres m tkm 2,094 2,337 11.6% 5,465 6,131 12.2% 2,848 3,322 16.6% 7,169 8,192 14.3%

1 International Routes m tkm 1,256 1,465 16.6% 3,443 3,855 12.0% 1,447 1,789 23.6% 3,886 4,517 16.2% 40 120 Domestic Routes m tkm 838 873 4.2% 2,023 2,276 12.5% 1,401 1,532 9.3% 3,282 3,675 12.0%

Flight Hours hours 157,477 167,128 6.1% 443,557 475,397 7.2% 237,906 250,724 5.4% 649,893 681,589 4.9% 0 Message text 128 0 • Strong operating results in 9M and Q3 2016: growing PAX flows and PLF on the back of balanced capacity

255 expansion. Highlight 0 0

Table line colour 178 17 178 178 9M 2016 Operating Data by Region (Scheduled Routes)

232 Chart Colours 235 240 Americas Russia CIS

8.4 % 11.4 % 182 14.8 % 15.3 % 7.4 % 196 12.0 % 5.6 % 204 5.3 p.p. 4.3 p.p.

135 157 2.5 p.p. 1.6 % 179 (8.3)% Passengers RPK ASK SLF Passengers RPK ASK SLF Passengers RPK ASK SLF 0 carried carried 112 carried 192 Higher demand on the flights to the region on the Russian market is a star performer for the third Passengers carried numbers were under back of operating program expansion resulted in year in row, despite high base of previous year pressure due to suspension of flights to , PLF improvement which was compensated by additional demand 59 on new Kazakhstan routes 100 135 Europe Middle East Asia 14.1 % 12.7 % 6.8 % 12.4 % 12.1 % 0 11.8 % 6.3 % 11.2 % 176 80

22 44 1.3 % 1.6 p.p. 66 0.4 p.p. (0.7) p.p.

1 Passengers RPK ASK SLF Passengers RPK ASK SLF Passengers RPK ASK SLF 40 carried carried carried 120 Softening of competitive landscape, intelligent Middle East market performance affected by Asian market indicators increase was sustained capacity management and additional destinations stronger demand for leisure travelling in 3Q as due to capacity expansion on selected routes, in Europe well as additional capacity on key regional less competition as well as increased transit 0 destinations demand from Asia Message text 128 0

255 Highlight 0 • Strong operating performance on the scheduled routes was partially offset by selective adjustments 0 in network due to internal and external reasons 18 Table line colour 178 Source: Data presented based on management accounting for scheduled flights of Aeroflot Group (excluding charter flights) 178 178 FLEET OVERVIEW Aeroflot Group Fleet Evolution

232 Chart Colours 235 240 Aeroflot Group Fleet in Operation 1 Average Age of the Fleet 2

182 Aircraft Average Age 196 4.0 204 10.4 4.5 8.8 Azul 4.6 7.7 135 7.0 6.4 6.4 4.8 157 4.9 179 283 IndiGo 4.9 251 247 209 222 232 5.0 0 Eastern Airlines 5.3 112 Xiamen Airlines 5.3 192 Lion Air 5.3 Airline 5.6 59 2011 2012 2013 2014 2015 9М 2016 Republic Airlines 5.7 100 5.8 135 5.9 Aeroflot Airline Fleet in Operation 1 (THY) 5.9 0 176 6.2 80 Aircraft Average Age 6.3

5.3 5.2 5.2 22 7.7 44 4.4 8.6 66 4.1 4.0 9.4 10.4 1 188 10.9 165 40 140 150 109 125 12.0 120 12.4 13.9 0 Jazz 15.5 Message text 128 2011 2012 2013 2014 2015 9М 2016 17.0 0

255 • Aeroflot operates the youngest fleet in the industry among airlines with active fleet of 100+ aircraft Highlight 0 • Aeroflot achieved significant progress in fleet renewal both for Aeroflot airline and for the Group 0

178 1 Excludes planes out of operation 20 Table line colour 2 178 Average Fleet Age of Selected Airlines with Active Fleet of 100+ Aircraft according to Flightglobal data (as of September 2016) excluding planes out of operation 178 Aeroflot Group Fleet Breakdown

232 Chart Colours 235 240 Operated by Lease type Total as of Total as of Change vs. Aircraft Type Owned Aeroflot Subsidiaries Finance Operating 30-Sept-2016 31-Dec-2015 31-Dec-2015 182 Wide-body 37 14 18 33 - 51 39 12 196 ------1 (1) 204 A330 22 - 8 14 - 22 22 - 15 8 10 13 - 23 16 7 135 - 6 - 6 - 6 - 6 157 Narrow-body (medium-haul) 121 69 24 166 - 190 181 9 179 - 36 9 27 - 36 40 (4) Airbus A320 71 5 - 76 - 76 70 6 0 112 30 - 15 15 - 30 26 4 192 20 28 - 48 - 48 45 3 Narrow-body (regional) 30 19 6 37 6 49 41 8 59 DHC 8 - 11 - 5 6 11 9 2 100 DHC 6 135 - 2 - 2 - 2 2 - An 148 - 6 6 - - 62 6 - SSJ 100 30 - - 30 - 30 24 6 0 1 176 Total fleet 188 102 48 236 6 290 261 29 80 Breakdown by Aircraft Type Breakdown by Company Breakdown by Ownership Type

Pobeda Owned 22 Aurora 44 Wide-body 4% Finance 2% 8% 66 18% 17%

1 40 Rossiya 120 Narrow- body 23% (regional) Narrow- 0 17% body Message text 128 Aeroflot (medium- Operating 0 65% haul) 81% 65% 255 Highlight 0 • Well-balanced fleet structure in line with Group’s strategy 0 1 Excluding 1 An-24 2 2 An-148 were in the process of subleasing to third-party Table line colour 178 21 178 178 Fleet Expansion Plan

232 Chart Colours 235 240 Delivery/Phase-out Schedule in Accordance with Existing Contracts

Type of 9M 2016 (Actual) 4Q 2016 2017 2018 2019 2020 and beyond Current 182 (1) Phase fleet Phase Phase Phase Phase Phase 196 aircraft Delivery Delivery Delivery Delivery Delivery Delivery 204 out out out out out out Wide-body (long-haul) 13 (1) 51 3 (1) 1 (1) 5 - 3 (3) 14 (71) 135 157 A-330 - - 22 ------(3) - (19) 179 B-777 7 - 23 - (1) 1 (1) - - - - - (21)

0 B-747 6 - 6 3 ------(9) 112 192 B-767 - (1) ------A-350 ------5 - 3 - 14 (22) 59 Narrow-body (medium-haul) 27 (18) 190 5 (7) 39 (11) 26 (16) - (22) - (192) 100 - - 135 A-319 1 (5) 36 - (3) - (7) - (8) - (18)

0 A-320 9 (3) 76 - (3) 11 (4) 10 (8) - (11) - (69) 176 A-321 10 (6) 30 3 (2) 8 - 4 - - (2) - (41) 80 B-737 7 (4) 48 2 (2) 20 (4) 12 (1) - (1) - (64) 22 Narrow-body (regional) 8 - 49 - (4) 9 - 11 - - (3) - (53) 44 66 SSJ-100 6 - 30 - - 9 - 11 - - - - (50) An-148 (3) - - 6 - (4) ------(2) 1 40 DHC-8 2 - 11 ------(3) - (1) 120 DHC-6 - - 2 ------TOTAL 48 (19) 290 8 (12) 49 (12) 42 (16) 3 (28) 14 (316) 0 Message text 128 (1) (2) (2) 0 Net additions + 29 aircraft -4 aircraft + 37 aircraft + 26 aircraft n/a n/a

255 • Aeroflot Group continues to intelligently manage capacity additions and develop its fleet taking into account Highlight 0 market trends and opportunities. 0 Notes: (1) As of 30.09.2016; Not including 1 An-24 (2) Net addition after 2019 is not applicable Table line colour 178 (3) Phase out via sublease,Q4 2016 phase out according to LOI 22 178 178 REVENUE AND YIELD MANAGEMENT Traffic Revenue Analysis

232 Chart Colours 235 1 240 Traffic Revenue Breakdown by Type Revenue from Scheduled Passengers (RUB mn) 9M 2016 182 Sheduled 9M 2016, % of 196 Passenger Flights total 3Q 2015 3Q 2016 Y-o-Y Region 9M 2015 9M 2016 Y-o-Y 204 93.6% scheduled revenue 135 157 179 53,068 60,287 13.6% Russia 110,490 131,798 19.3% 42.1% Charter Passenger Flights 0 112 3.9% 192 Cargo 2.5% 27,435 34,311 25.1% Europe 64,229 82,882 29.0% 26.5%

59 100 16,382 17,769 8.5% Asia 40,763 47,858 17.4% 15.3% 135 Scheduled Traffic Revenue by POS 9M 2016 2 0 176 Sales abroad 5,757 6,408 11.3% CIS 14,833 16,309 9.9% 5.2% 80 Sales in Russia 31.1% 36.8% 22 44 6,120 8,025 31.1% Americas 14,477 20,319 40.4% 6.5% 66

1 40 5,370 5,338 -0.6% Middle East 13,426 14,068 4.8% 4.5% 120 Call center and own branches Online 0 3.5% 28.6% 114,132 132,138 15.8% Total 258,219 313,234 21.3% 100.0% Message text 128 0 • In 9M 2016 revenue from scheduled passengers grew by 21.3% on the back of revenue growth across all regions 255 Highlight 0 • Key drivers of revenue growth are Russian, European, Asian and American markets 0

1 Data presented based on management accounting Table line colour 178 2 Data presented based on management accounting for Aeroflot airline and routes of subsidiary airlines under commercial management of Aeroflot 24 178 178 Scheduled Flights Revenue Units

232 Chart Colours 235 240 3Q 2016 Yield (PAX Revenue / RPK) 3Q 2016 RASK (PAX Revenue / ASK)

182 RUB RUB 1.6% 196 (0.4)% 3.6% 7.5% 14.2% 204 7.8% 4.18 3.59 4.17 3.53 3.53 3.56 135 4.02 157 3.87 3.88 3.31 179 3.59 3.09 0 112 192

59 Domestic International Total Domestic International Total 100 135 9M 2016 Yield (PAX Revenue / RPK) 9M 2016 RASK (PAX Revenue / ASK) 0 176 RUB 9.3% RUB 10.8% 13.8% 80 9.8% 10.1% 17.4% 4.14 3.30 3.18 3.79 3.87 3.02 2.98 22 3.55 3.53 2.79 44 3.23 2.57 66

1 40 120

0 Domestic International Total Domestic International Total Message text 128 0 % Y-o-Y increase 2015 2016

255 • Active revenue management strategy translates into gradual increase in yields Highlight 0 0 • Positive impact of RUB devaluation and subsequent increase in RUB yields for inbound and transit routes • Fourth quarter trends show a decline, in line with seasonality Table line colour 178 25 178 Note: Data presented based on management accounting 178 FINANCIAL PERFORMANCE Financial Highlights

232 Chart Colours 235 240

RUB mn 182 Q3 2015 Q3 2016 Change 9M 2015 9M 2016 Change 196 (where applicable) 204 133,043 157,482 18.4 % Revenue 309,510 381,306 23.2 % 135 157 179 45,935 61,933 34.8 % EBITDAR1 79,187 120,330 52.0 %

0 112 34.5 % 39.3 % 4.8 p.p. EBITDAR1 margin 25.6 % 31.6 % 6.0 p.p. 192

59 34,535 47,125 36.5 % EBITDA 47,846 77,160 61.3 % 100 135 26.0 % 29.9 % 3.9 p.p. EBITDA margin 15.5 % 20.2 % 4.7 p.p. 0 176 80 30,942 43,676 41.2 % Operating profit 36,808 66,926 81.8 %

22 44 23.3 % 27.7 % 4.4 p.p. Operating margin 11.9 % 17.6 % 5.7 p.p. 66

1 5,367 41,331 >7.7x Net income 1,826 43,798 >23.9x 40 120 4.0 % 26.2 % 22.2 p.p. Net margin 0.6 % 11.5 % 10.9 p.p. 0 Message text 128 0 • Revenue growth driven by expanding passenger traffic, active revenue management and positive impact from

255 currency devaluation. Highlight 0 • Y-o-y increase in EBITDAR and EBITDA margins in 9M 2016 on the back of revenue growth and effective cost 0 control.

Table line colour 178 1 EBITDAR = EBITDA + operating lease expenses; 27 178 178 Revenue Growth Decomposition

232 Chart Colours 235 240 Revenue by Key Factors Revenue by Business Segments RUB mn RUB mn 182 196 23.2% 23.2% 204

10.5% 11.1% 0.4% + 1.2% 135 + + 17.8% + 3.0% + 0.6% + 1.9% 157 381,306 381,306 179 34,378 1,317 3,673 9,229 1,757 5,795 55,015 32,430 0 112 309,510 309,510 Other Up by 498.7 Cargo 192 Yields up Driven by revenue by 9.8% other minor thd PAX (or volumes (mainly factors c2.0x times) + 24.1% Depreciation agreements (Aeroflot with airlines 59 of RUB in 9M Bonus, non- Growth in 2016 y-o-y by Growth across geographies: and FFP) 100 operating refundable c. 15.0% tickets, etc.) Russian revenue + 19.3% 135 metrics: International revenue +22.8% PAX + 9.2% RPK+ 13.1% 0 176 80

22 44 66

1 40 120 9M 2015 Volume Currency Pricing Other 9M 2016 9M 2015 Scheduled Charter Cargo Other 9M 2016 Passenger Passenger Revenue 0 Flights Flights Message text 128 0 • Positive contribution of volume and RUB devaluation were the main factors contributing to revenue growth. 255 • Primary driver of revenue growth was expansion of scheduled passenger flights Highlight 0 0

Table line colour 178 28 178 178 Operating Costs

232 Chart Colours 235 % of Total 240 Change Operating Expense Change Change Change Operating 3Q 2015 3Q 2016 ex. FX & (RUB mn If not stated 9M 2015 9M 2016 ex. FX & y-o-y y-o-y Expense 182 NRE otherwise) NRE 196 (9M) 204 26,287 29,127 10.8 % 6.9 % Fuel 71,001 73,917 4.1 % (5.4)% 23.5% 135 157 179 75,814 84,679 11.7 % 12.6 % Opex (ex. Fuel) 201,701 240,463 19.2 % 12.7 % 76.5%

0 Aircraft, traffic and 112 21,816 24,634 13.0 % 8.0 % 56,332 64,775 15.0 % 9.8 % 20.6% 192 passenger servicing

59 13,408 17,086 27.4 % 27.4 % Staff 40,643 48,118 18.4 % 18.4 % 15.3% 100 135 11,400 14,808 29.9 % 27.5 % Operating lease 31,341 43,170 37.7 % 23.4 % 13.7% 0 176 80 8,711 9,509 9.2 % 4.9 % Maintenance 21,809 27,034 24.0 % 9.8 % 8.6%

22 44 6,311 7,246 14.8 % 13.6 % SG&A1 17,790 20,089 12.9 % 5.9 % 6.4% 66

1 3,592 3,449 (4.0)% (4.0)% D&A and custom duties 11,037 10,234 (7.3)% (7.3)% 3..% 40 120 10,574 7,947 (25.0)% (1.2) % Other expenses2 22,747 27,043 18.9 % 12.9 % 8.6% 0 Message text 128 0 102,101 113,806 11.5 % 11.1 % Total Opex 272,702 314,380 15.3 % 8.0 % 100.0%

255 Highlight 0 • In 9M 2016 operating costs were significantly impacted by expansion of operations and RUB depreciation which mostly 0 affected operating lease expense, maintenance and aircraft, traffic and passenger servicing costs

1 Includes sales and marketing expenses and administration and general expenses 178 29 Table line colour 2 Other expenses include inflation of Global Distribution Systems cost, reserves accrual, gain from sale of aircraft in finance lease, catering expenses, banks’ commissions 178 178 Unit Costs

232 Chart Colours 235 240 3Q 2015 3Q 2016 Change Operating Expense per ASK (CASK), RUB 9M 2015 9M 2016 Change

182 0.75 0.75 0.9 % Fuel 0.76 0.73 (4.3)% 196 2.16 2.19 1.7 % Opex (ex. Fuel): 2.15 2.35 9.6 % 204 0.62 0.64 2.9 % Aircraft, Traffic and Passenger Servicing 0.60 0.63 5.7 % 0.38 0.44 16.0 % Staff 0.43 0.47 8.8 % 135 0.32 0.38 18.3 % Operating Lease 0.33 0.42 26.6 % 157 179 0.25 0.25 (0.6)% Maintenance 0.23 0.26 13.9 % 0.18 0.19 4.5 % SG&A 0.19 0.20 3.8 % 0 0.10 0.09 (12.6)% D&A and Customs Duties 0.12 0.10 (14.8)% 112 0.30 0.21 (31.8)% Other Expenses 0.24 0.26 9.3 % 192 2.90 2.95 1.5 % Total Opex 2.90 3.08 5.9 %

59 5.9% (6.3)% 100 135

0 (0.8)% 176 0.09 0.030.02 (0.20)(0.20) (0.01) 0.01 80 0.03 0.04 (0.03) 0.03 22 44 66 3.08 2.90 2.882.87 2.90 1 40 120

0 Reported Staff Fuel Maintenance Aircraft, Traffic Operating D&A and CD* Admin & Sales Other Costs Reported FX and NRE** CASK 9M Reported Message text 128 CASK 9M and Lease & Marketing (incl. NRE**) CASK 9M 2016 ex. FX CASK 9M 0 2015 Passenger 2016 and NRE** 2015 Servicing

255 • Cost per ASK increased by 5.9% from RUB 2.90 in 9M 2015 to RUB 3.08 in 9M 2016 on the back of operating expenses increase Highlight 0 due to negative FX effects 0 • Efficient CASK management during the reporting period (both reported and net of external FX effects) 178 * Customs duties 30 Table line colour ** 178 Non-recurring expenses include pre-term return of aircraft at Orenair and Rossiya, reserves accrual, gain from sale of aircraft in finance lease 178 Fuel Cost Management

232 Chart Colours 235 240 Flight Hours Fuel Consumption per ASK Fuel Consumption per ATK (thousand hours) (gr/ASK) (gr/ATK) 182 4.9% (1.0)% (1.6)% 196 204

682 23.1 22.9 191.6 188.5 135 157 179 650 0 112 192 9M 2015 9M 2016 9M 2015 9M 2016 9M 2015 9M 2016 59 100 Aeroflot Airline Jet Fuel Price Comments 135 (RUB per tonne of jet fuel) 2015 2016 0 • Continuous fuel supply optimization: 1-year supply 176 contracts in airports across Russia 80 31,652 • Majority of fuel purchased in Russia (73%) and

22 almost all fuel at international airports supplied at 44 formula-linked price - Jet fuel price = NW Europe 66 30,498 (FOB Rotterdam) price x Discount x FX rate2 x 1.183 + Storage/Fuelling/Supply fees (if any of these applicable) 1 40 • Decreasing average fuel price. 120 1 Jan Feb Mar Apr May Jun Jul Aug Sep 9M Average fuel purchase price of $449/ton 2016 (c.RUB30,498/ton) in 9M 2016 vs $538/ton 0 31.9 33.5 39.8 43.3 47.6 49.9 46.5 47.2 47.2 Brent (USD) Message text 128 (RUB31,652/ton) in 9M 2015 (3.6% y-o-y decrease in 76.3 77.2 70.5 66.7 65.7 65.3 64.3 64.9 64.6 USD/RUB 0 RUB terms) 1 Average price for 9 months 2 USD/RUB exchange rate as per the Central Bank of Russia 255 3 Assuming 18% VAT rate Highlight 0 0 • Aeroflot is achieving efficiency gains in fuel costs as new aircraft are put into operation, while old and less fuel-efficient ones are in the process of phase out Table line colour 178 • Oil price, RUB fluctuations and changes in taxation of oil and gas sector led to a decrease in jet fuel price for Aeroflot 31 178 178 Headcount Overview

232 Chart Colours 235 240 Aeroflot Group Headcount by Category Flight crew 31-Dec-2015 30-Sep-2016 Y-o-Y 10.3% 182 196 Flight crew 3,524 3,750 6.4% 204 Other airline Cabin crew 9,758 10,094 3.4% personnel 14.7% 135 Technical maintenance and repair 3,871 4,337 12.0% Cabin crew 157 27.8% 179 Tickets and services sales, advertising 1,680 1,824 8.6% Airport services 5,726 6,570 14.7% 0 Other airline personnel (inc. airlines’ head office) 112 5,557 5,348 (3.8)% Airport services 192 18.1% Other non-airline subsidiaries’ personnel 3,915 4,377 11.8% Tickets and Technical Total 34,031 36,300 6.7% services sales, maintenance and 59 advertising repair 100 5.0% 11.9% 135 Traffic Revenue / Airlines’ Headcount PAX Traffic / Airlines’ Headcount

0 (RUB ‘000 per employee, annualized) (passengers per employee, annualized) 176 3.7% 80 18.4%

22 14,075 1,346 1,396 44 66 11,884

1 40 120

0 Message text 128 0 9M 2015 9M 2016 9M 2015 9M 2016 255 Highlight 0 0 • Significant improvement in labour productivity has resulted in increasing PAX traffic per employee 32 Table line colour 178 178 178 EBITDA Evolution

232 Chart Colours 235 240 (RUB mn)

182 Total effect on revenue Total effect on costs 196 ∑=71,798 RUB mn ∑=(42,482) RUB mn 204 Net volume and price effect 135 157 ∑=(21,852) RUB mn 179 Net volume and price effect 34,378 (20,630) ∑=37,420 RUB mn 0 3,811 (7,443) 112 192 (5,535) (7,325) 1,317 3,673 (2,147) 32,430 (1,048) 59 (2,165) (774) 100 135

0 176 80 Net FX effect 77,160 76,387 ∑=13,748 RUB mn 22 44 47,846 66

1 40 120 Reported Volume Other Pricing FX benefit FX drag Fuel* Staff* Aircraft, Operating Maintenance* Admin & Other OPEX* Reported NRE** Adjusted EBITDA 9M Traffic and Leases* Sales & EBITDA 9M EBITDA 9M 0 2015 PAX* Marketing* 2016 2016 Message text 128 0 • FX impact on operating costs was completely offset by positive contribution of FX change to revenue 255 • Net of FX effect decrease in fuel price significantly compensated for the increase in key operating costs Highlight 0 0 • Key driver of EBITDA increase is the growth in size and scale of operations

* Excluding currency impact Table line colour 178 ** Non-recurring expenses include pre-term return of aircraft at Orenair and Rossiya, reserves accrual, gain from sale of aircraft in finance lease 33 178 178 Net Income Evolution

232 Chart Colours 235 240 (RUB mn)

182 (41,678) 196 5,795 204 66,001

135 157 179 15,171 (2,196) (9,062) 0 112 192 11,782 (7,909) 59 4,068 100 135

0 176 80 43,798 22 44 66

1 40 120 1,826 Reported Net Traffic Revenue Other Revenue Operating Financial Subs Reserve on Settlement of Finance Lease Taxation Reported Net Income 9M 2015 Expenses Income/Expense* Reorganization Transaero loan Derivative Revaluation Income 9M 2016 0 and Reval. of and other Contracts Message text 128 Equity 0 Investments

255 Highlight 0 0 • Strong results at operating level ensured improvement of the bottom line

Table line colour 178 * Excluding financial income/expense associated with derivatives 34 178 178 Reported and Adjusted Operating and Net Income Analysis

232 Chart Colours 235 240 9M Adjusted Operating Income Build-Up (RUB mn) 770 1,240 (2,784) 182 196 204

135 157 179 66,926 66,152

0 112 192

59 Reported Operating Income 9M Pre-term return of aircraft* BSP and other agents bad debt, Sale of aircraft in finance lease Adjusted Operating Income 9M 100 2016 fines and penalties reserve 2016 135 9M Adjusted Net Income Build-Up (RUB mn)

0 2,810 (627) 176 (12,583) 80 5,726

22 44 4,047 66 (2,784) 770 1 1,139 40 43,798 120 42,297

0 Reported Net Settlement of Vladavia disposal Impairment of Cargo and Alt FOREX on PDP Sale of aircraft in Pre-term return of BSP and other Adjusted Net Message text 128 Income 9M 2016 derivative investments in Rejser disposal refund** finance lease aircraft*** agents bad debt, Income 9M 2016 0 contracts MASh fines and penalties reserve 255 Highlight 0 • Aeroflot Group delivered strong results despite significant impact of one-off effects in 9M 2016 0 * Orenair and Rossiya airline ** 3Q 2016 net FOREX on PDP refund amounted to 9.8 bn RUB *** Orenair and Rossiya airline including FX effect Table line colour 178 35 178 178 Operating and Free Cash Flows

232 Chart Colours 235 240 (RUB mn)

182 >2.8x 196 204 288 (5,170) 12,521 135 21,220 157 7,189 (15,007) (2,232) 179 (2,671)

9,250 0 112 192

59 100 135 81,606 84,341 76,435 0 176 80 58,954

22 44 30,097 66

1 40 120 Profit Before D&A Interest Unrealized Other Adj. Cash Flows Working Net Cash Net Capital Deposit Net Pre- Net insurance Free Cash Free Cash Income Tax Expense Net FX Loss Before From Capital Flows From Expenditures Placement delivery deposits for Flow 9M 2016Flow 9M 2015 Working Operating Changes and Operating and Return Payments for a/c in 0 Capital Activities Income Tax Activities Aircraft operating Message text 128 Changes Before lease and 0 Working other Capital 255 Changes Highlight 0 • Strong Operating and Free Cash Flow in 9M 2016 on the back of growing business volumes, operating performance supported 0 by working capital improvement.

Table line colour 178 36 178 178 Leverage and Liquidity

232 Chart Colours 235 1 2 240 Debt Profile Net Debt / LTM EBITDA

182 3.3 3.4 RUB mn 31-Dec-2015 30-Sep-2016 Change 196 204 Borrowings 68,460 31,805 (53.5)% 1.6 135 Finance Lease Liabilities 164,524 132,746 (19.3)% 157 1.2 179 Pension Liabilities 745 802 7.6 %

0 Total Debt 233,729 165,353 (29.3)% 112 30-Sep-2015 31-Dec-2015 30-Jun-2016 30-Sep-16 192 Cash and Short Term 36,610 60,591 65.5 % Investments RUB mn 30-Sep-2015 31-Dec-2015 30-Jun-2016 30-Sep-2016 59 100 2 161,880 197,119 122,269 104,762 Net Debt Net Debt 135 197,119 104,762 (46.9)% EBITDA 2 49,127 58,703 75,427 88,018

0 176 Debt breakdown by currency Finance Lease Repayment Schedule (RUB mn)3 80 Borrowings Finance Lease 0.01% 73.386 22 44 66 28%

1 40 120 17.810 18.118 3% 99.99% 16.465 0 4.435 Message text 128 69% 0 RUB USD EUR 4Q 2016 2017 2018 2019 2020+

255 Highlight 0 • Total Debt decreased by 29.3% mainly due to decrease in borrowings and revaluation of finance lease obligations 0 • Cash position of RUB 60.6 billion and undrawn credit lines of RUB 70.2 billion 1 31-Dec-2015 exchange rate - 72.88 RUB per USD, 30-Sep-2016 exchange rate - 63.16 RUB per USD Table line colour 178 2 Net debt does not include capitalised operating lease expenses, based on annualized EBITDA 37 178 3 Not including interest; future payments in dollars converted into roubles at exchange rate of 63.16 RUB per USD 178 APPENDIX A Modern Global Airline with a Rich 90-Year Heritage

232 Chart Colours 235 240 Phase I Phase II Phase III Phase IV (1923 – 1990) (1991 – 2008) (2009 – 2011) (2011 onwards) 182 196  1923: Russian  1991: Reorganised as Joint  2009: Restructuring  2011: Acquired domestic 204 industry and Aeroflot’s Stock Company programme – new corporate regional carriers Rossiya, predecessor established structure and management , Sakhalinskie  1992: First Airbus and team (CEO Vitaly Saveliev) Aviatrassy, Orenair from 135  1980s: Flights to all Boeing delivered . Integration begins 157 continents; passenger  2009: Further fleet (including Donavia) 179 annual traffic of 120 mn  2000: Listed on Moscow modernisation (+24 new Exchange aircraft)  2013 – 2014: Regional airline integration completed. 0  2006: Joined SkyTeam  2010-2011: New modern Creating Aurora Airlines, a 112 alliance terminals D & E put into carrier 192 operation at Russia’s main (merging Vladavia and SAT) airport (+25 gates and 17 59 mn passenger capacity),  2014: Sochi 2014 Winter 100 Aeroflot’s hub Olympics official airline 135  2014: Launch of Low Cost Carrier – Pobeda 0 176  2015: Effective Transaero 80 crisis resolution  2016: Commencement of 22 flights of a newly created 44 regional carrier Rossiya 66 (merger of Rossiya, Donavia and Orenair) 1 40 120

0 Message text 128 0

255 Highlight 0 0

Table line colour 178 39 178 178 Transformation of the Company

232 Chart Colours 235 1 6

240 Aeroflot in 2009 Aeroflot Now Change

 Not-integrated Subsidiaries2  Multi-brand Product Offering 182 From multiple Middle-price Regional 196 Premium Low-cost disintegrated regional / charter3 (Far East) 204 subsidiaries to product-focused  model business model 135 Business 157 Aeroflot Airline Aeroflot + Subsidiaries Aeroflot Airline Aeroflot Group 179

PAX 8.8 mn 11.1 mn 26.1 mn 39.4 mn +3.5x

0 RPK 26.0 bn pkm 29.9 bn pkm 112 74.1 bn pkm 97.6 bn pkm +3.3x 192 PLF 69.0% 70.2% 79.3% 78.3% +8.1 p. p.

59 efficiency efficiency Operating Operating Fuel consump. 28.7 gr / ASK >30.0 gr / ASK 23.3 gr / ASK 23.1 gr / ASK <(20%) 100

135 Average fleet age 9.5 years4 15.0 years4 4.4 years 6.4 years (8.6 yrs)

0 5 176 Revenue 106,132 RUB mn 415,173 RUB mn 80

EBITDAR 23,708 RUB mn 103,118 RUB mn

22 Financial 44 indicators

66 NPS Score None 72% 1 Received the Best Eastern European 

40 Skytrax Awards None Airline award (5 times) quality

120 Service 4 Star Airline

Share of

0 automated

IT 35% 100% Message text 128 business 0 processes  systems

255 • Over the course of the last 7 years the Company has shown extraordinary operational and financial Highlight 0 transformation. 0 Source: Company data 1 Figures attributable to Aeroflot Airline; 2 In 2011 Aeroflot acquired from Rostec Rossiya, Orenair, Vladavia and SAT airlines; 3 Created in March 2016 as a result of a merger of Rossiya, Donavia and Orenair 4 5 6 40 Table line colour 178 airlines ; as of 01.01.2009; 2009 consolidated IFRS financial figures are converted from USD to RUB with an 2009 average exchange rate of 31.72; Change figures illustrate Aeroflot Group now vs. Aeroflot 178 + Subsidiaries in 2009 178

2025 Strategy Progress

232 Chart Colours 235 240 Strategic Goal 2011 – 2015 Progress Status 2025 Goal

182 1 PAX, mn CAGR: 24.5% 196 204 Leading positions in TOP-5 European European and global 34.7 39.4 rankings by passenger 27.5 31.4 TOP-20 Global 16.4 135 traffic 24 PAX >70 mn 157 5 75 179 Domestic PAX > 30 mn 2011 2012 2013 2014 2015 2 Revenue, RUB bn 0 CAGR: 27.3% 112 192 Leading positions in 415.2 TOP-5 European 319.8 European and global 253.0 291.0 TOP-20 Global rankings by revenue 158.0 59 7 23 100 135 2011 2012 2013 2014 2015 3 0 Share of transit PAX, % 176 + 14.1 p.p. Share of transit 80 Development of hub-and- 39.2% 44.2% passengers: 32% spoke model 30.1% 32.7% 35.5% 22 44 66 2011 2012 2013 2014 2015 4 1 Russian market share, % 40 120 Increasing presence in +16.2 p.p. Broad presence various geographical and price segments 36.7% on the market 30.0% 30.3% 31.1% 0 20.5% Message text 128 0 2011 2012 2013 2014 2015 255 Highlight 0 # – position among European airlines # – position among airlines globally 0 • Aeroflot Group has achieved substantial progress on its way to meeting its long-term strategic goals. Table line colour 178 41 178 178 Key Operating Data of Subsidiary Airlines

232 Chart Colours 235 240

182 196 Rossiya Orenair Donavia Aurora Pobeda Total 204

135 157 Passenger Traffic, 9M 2016 6,103 491 209 1,051 3,261 11,116 179 thousand PAX 9M 2015 3,850 2,301 1,203 868 2,163 10,385 0 112 192 Y-o-Y 58.5% (78.6)% (82.6)% 21.1% 50.7% 7.0%

59 Passenger Turnover, 9M 2016 13,645 1,494 268 1,718 5,112 22,238 100 135 million pkm 9M 2015 7,129 5,074 1,590 1,459 3,330 18,583

0 176 Y-o-Y 91.4% (70.6)% (83.1)% 17.7% 53.5% 19.7% 80 9M 2016 84.3% 77.8% 66.7% 73.8% 87.6% 83.4% 22 44 Seat Load Factor, % 9M 2015 76.3% 76.0% 73.2% 71.8% 82.0% 76.5% 66

Y-o-Y 8.0 p.p. 1.8 p.p. (6.5) p.p. 2.0 p.p. 5.6 p.p. 6.9 p.p. 1 40 120 9M 2016 120,520 10,577 4,111 29,819 41,165 206,192

0 Flight Hours, hours 9M 2015 87,120 42,720 22,032 25,614 28,849 206,336 Message text 128 0 Y-o-Y 38.3% (75.2)% (81.3)% 16.4% 42.7% (0.1)% 255 Highlight 0 0 1 According to IFRS, before intercompany eliminations

Table line colour 178 42 178 178 Infrastructure Expansion to Support Future Growth

232 Chart Colours 235 240 2015–2017 SVO Hub Development Programme SVO Site Outlay 1 2 3 4 182 1 Runway-3 Terminal B Cargo terminal Fuel-filling 196 Construction of 3-rd • 44 additional take-offs and landings per hour complex 204 runway • Completion date – 2018

135 2 157 • Focused on domestic flights 179 Terminal B • Annual passenger capacity – 15 mn • Area – 100 th m2 0 112 3 192 • Annual cargo capacity – 680 th tones Cargo (freight) terminal 2 59 • Area – c. 90 th m 100 135 4

• Capacity – 1 mn tones in 2017 (30% of total 5 6 7 Fuel-filling complex Reconstruction of 0 airport volume) Interterminal tunnel Railway terminal 176 roads 80 5 SVO Traffic Forecast • 2 terminal-to-terminal tunnels (passengers and 22 baggage) PAX, mn 44 Interterminal tunnel • Length – 2,100 m CAGR: 4% 66 • Max connecting time – 50 min 6 59 1 • Better connection between South and North 55 40 47 Reconstruction of roads terminals 120 • Comfortable direct entrance to the airport terminal, 4 lanes 31 0 7 Message text 128 • New railway track 0 Railway terminal • 15 minutes time interval between “Aeroexpress” trains 2015 2020 2025 2030 255 Highlight 0 0 • Sheremetyevo is set to become one of the most modern airports in Europe, increasing Moscow’s attractiveness as a transit hub for international passengers and providing a solid foundation for Aeroflot’s long-term strategy. 178 43 Table line colour Source: Public domain, Sheremetyevo International Airport corporate presentation. 178 178 Statement of Comprehensive Income

232 Chart Colours 235 240 RUBm, Unless Otherwise Stated 9M 2015 9M 2016 Change Traffic revenue 268,562 334,563 182 24.6% 196 Other revenue 40,948 46,743 14.2% 204 Revenue 309,510 381,306 23.2%

135 Operating costs (272,702) (314,380) 15.3% 157 179 incl. Staff costs (40,643) (48,118) 18.4% Depreciation and amortisation (10,035) (9,250) (7.8%) 0 112 Operating profit 36,808 66,926 81.8% 192 Loss from sale and impairment of investments, net (4,992) (3,734) (25.2%)

59 Finance income 7,987 18,860 136.1% 100 Finance costs (16,124) (7,388) (54.2%) 135 Hedging result (15,731) (10,611) (32.5%) 0 Share of results of associates (28) - - 176 80 Result from disposal of subsidiaries - (5,099) - Profit before income tax 7,920 58,954 x7.4 22 44 Income tax expense (6,094) (15,156) x2.5 66 Profit for the period 1,826 43,798 x24.0 1 Other comprehensive profit/(loss) 40 120 Items that may be reclassified subsequently to profit or loss: Profit on the change in fair value of hedging derivative financial instruments 7,248 4,485 (38.1%) 0 Message text 128 Effect from hedging revenue with foreign currency liabilities (19,698) 27,360 - 0 Deferred tax related to a profit/(loss) from cash flow hedging instruments 2,509 (6,442) -

255 Other comprehensive (loss)/profit for the period (9,941) 25,403 - Highlight 0 TOTAL COMPREHENSIVE (LOSS)/PROFIT FOR THE PERIOD 0 (8,115) 69,201 -

Table line colour 178 44 178 178 Condensed Statement of Financial Position

232 Chart Colours 235 240 Assets (RUB mn) 31-Dec-15 30-Sep-16 Change Cash and cash equivalents 30,693 52,121 69.8% 182 196 Short-term financial investments 5,917 8,469 43.1% 204 Accounts receivable and prepayments 76,317 84,454 10.7% 7,447 9,462 27.1% 135 Expendable spare parts and inventories 157 Deferred tax assets 21,632 13,668 (36.8%) 179 Prepayments for aircraft 35,291 30,563 (13.4%) 0 Property, plant and equipment 104,494 103,595 (0.9%) 112 192 Goodwill 6,660 6,660 - Other assets 26,743 20,810 (22.2%) 59 315,194 329,802 4.6% 100 Total Assets 135 Liabilities (RUB mn) 0 176 Accounts payable and accrued liabilities 54,751 62,611 14.4% 80 Unearned traffic revenue 28,691 36,271 26.4% 22 Short-term loans and borrowings and current portion of long-term loans and borrowings 54,085 15,924 (70.6%) 44 66 Long-term loans and borrowings 14,375 15,881 10.5% Finance lease liabilities 164,524 132,746 (19.3%) 1 6,917 9,836 42.2% 40 Provisions for liabilities 120 Other liabilities 27,971 15,880 (43.2%) Total Liabilities 351,314 289,149 (17.7%) 0 Message text 128 Hedge reserve (64,720) (39,317) (39.3%) 0 Retained earnings 39,755 82,343 x2.1 255 Total Equity (36,120) 40,654 - Highlight 0 0 Total Liabilities and Equity 315,194 329,802 4.6%

Table line colour 178 45 178 178 Board of Directors

232 Chart Colours 235 240 Corporate Governance Board of Directors

Personnel and Audit Strategy 182 Name Remuneration Committee Committee 196 Committee 204 General Meeting of Audit Committee Shareholders (4 members) Kirill Androsov Chairman of the Board of Directors 135 157 179 Vitaly Saveliev Personnel and 0 Remuneration Board of Directors 112 Committee Dmitry Saprykin Member 192 (6 members) Mikhail Alekseev Member Member 59 100 135 Strategy Committee Executive Board Igor Kamenskoy Member Chairman (9 members) 0 176 Yury Slyusar Member 80

22 Incorporated in Russia, PJSC Aeroflot is subject to Aleksey Germanovich Member Member Member 44 66 Russian corporate governance regulations and follows Russian Corporate Governance Code Roman Pakhomov Member Member Chairman 1 40 120 Dmitry Peskov Member Member The Board of Directors is currently composed of 11 0 Vasiliy Sidorov Chairman Member Member Message text 128 members. The Board’s composition is well balanced 0 from members’ background perspective, number of 255 Highlight 0 independent, non-executive and executive directors 0 Independent director according to the Russian Corporate Governance Code Table line colour 178 46 178 178 Aeroflot Group Structure

232 Chart Colours 235 240

182 (1) 196 PJSC Aeroflot 204

135 157 Airlines Ancillary Companies 179 CJSC Aeromar JSC 75%-1 sh. 51% 0 In-flight catering 112 192 (2) JSC Donavia 100% LLC Aeroflot-Finance 99.99% Financial services 59 100 JSC Orenair (2) 100% 135 JSC Sherotel 100% Hotel services 0 JSC Aurora Airlines 51% 176 80 Aeroflot Aviation School 100% LLC Pobeda Airlines 100% Education services 22 44 A-Technics 66 100% Maintenance

1 40 120

0 • Over the past years the Group structure was refined with a focus on aviation assets and disposal of non-core assets, which is Message text 128 in compliance with the Group's strategy to streamline the core business 0 • PJSC Aeroflot also owns 45.0% of JSC AeroMASh-AB (Aviation security), 8.96% of JSC Sheremetyevo (base airport), 3.85% of PJSC Transport Clearing House (mutual settlements between agencies and airlines) and 49.0% of LLC Transnautic Aero (cargo 255 Highlight 0 sales, in liquidation) 0 Notes: (1) The Group as of September 30, 2016; Aeroflot Group consolidates all entities: PJSC Aeroflot and all subsidiaries. Table line colour 178 (2) Non-operating entities 47 178 178 Aeroflot Airline - Recognized Service Leadership

232 Chart Colours 235 240 Recognition for Outstanding Service and Achievements Results in Consistent Improvements in NPS

182 196 204 72% 67% 135 157 56% 58% 179 Best Airline 52% 4th Star awarded in Eastern Europe Best Russian Airline 0 in 2016 (2016, 2015, (2016, 2014, 2013) 112 2014,2013 & 2011) 192

59 100 135

0 Best European airline 176 Best Russian Airline 7-star safety rating (best business-class 80 2013, 2014, 2015 in mid-haul segment) 2011 2012 2013 2014 2015 22 44 66  Dedication to high level of client service backed by relevant and effective marketing strategy has helped us 1 to increase NPS (Net Promoter Score) for several 40 years in row 120 Best Airline Cuisine Readers’ Choice Best Russian Airline Top-10 ― According to estimates, our NPS remained 0 stable in H1 2016 Message text 128  Increase in NPS Index translates into incremental 0 passenger traffic and revenue growth

255 Highlight 0 0 • Aeroflot’s achievements in client services have been recognized by independent industry experts, professional community and passengers and helped to significantly increase NPS. Table line colour 178 48 178 178 IR CONTACTS

Andrey Napolnov, CFA Nikolay Domrachev

Head of Investor Relations Senior IR manager

Tel: +7 (495) 258-06-86 Tel: +7 (495) 258-06-86 E-mail: [email protected] E-mail: [email protected]

Address: 119002, Russia, Moscow, Arbat St. 10 E-mail: [email protected] Website: http://ir.aeroflot.com