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Home , Aeroflot, Rossiya Airlines, Sergey Chemezov, UTair Cargo

Aeroflot Group Investor Presentation

December 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 Groups in the World

1 Top-20 airline group globally, one of Europe’s leading , #1 airline in 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, 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 Competitive Dynamics

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

Russian Air Transportation Market (million PAX) International Routes mln PAX, 9M 2018 Increase in PAX million inc. PAX of Russian and Foreign Carriers and int. transit PAX Domestic Routes 10.8% +3.9 42.2 8.5% 105.9 95.6 +2.0 +2.1 11.7% +1.3 21.8 53.2 +0.9 47.7 45.2 +0.1 16.7 41.6 7.9% 12.2 9.9% 7.0 5.9 21.5 23.2 9.1% 48.0 52.7 22.0 1 20.2 Aeroflot S7 Group Group Foreign Others Group Carriers 9M 2017 9M 2018 Q3 2017 Q3 2018 Aeroflot Group (million PAX) Source: TCH, Rosaviatsia, Company estimates / 1 UTair Group includes UTair, Utair-Cargo and Turuhan 10.2% Market Share (PAX)

42.2 9M 2017 9M 2018 38.3 13.1% 20.7% 20.6% 8.9% 18.8 17.2 17.4 15.4 10.4% 40.1% -0.2 p.p. 39.9% 11.2% 15.3% 15.8% 7.0 7.7 21.1 23.5 15.4% 8.4 9.7 6.4% 6.6% 6.0% 11.5% 5.6% 11.6% 9M 2017 9M 2018 Q3 2017 Q3 2018 Market Dynamics Net of Aeroflot Group “Clean” Market Share of Aeroflot Group (Net of Intl.-Intl. Transit Traffic) 11.1% Total Market 5.8% 37.8% Aeroflot Group 37.6% 13.2% International 6.7% 8.8% Domestic 4.6% 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 10.2% in 9M 2018 with 5 acceleration in Q3 2018. Continuing Market Recovery

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

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

20.5% 16.4% 12.9% 12.2% 8.5%

30.2 % 36.1 %

21.8 %

18.6 % 17.2% 16.9 % 20.7 % 14.6 %

15.3 % 11.9% 14.4 % 10.6% 12.7% 10.8% 9.0% 9.9% 9.1% 7.5% 7.4% 7.9 %

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

• 9M 2018 are marked by further market recovery on the back of higher demand in both international and domestic 6 segments and active capacity additions by market players. 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 • 9M 2018 +8.0% (Sheremetyevo) • Premium product (4 Stars) 26.8 • High income and middle class 24.8 Premium 26.8 63.4% • Hub and spoke model

9M 2017 9M 2018

• Regional and leisure product • Saint-Petersburg +0.3% Focus on domestic flights (Pulkovo) 9.0 9.0 Regional • Selected international routes, • Moscow 9.0 21.4% and Charter mostly out of VKO airport in (Sheremetyevo, Moscow Vnukovo) • Charter operations 9M 2017 9M 2018

• Moscow (Vnukovo) • Short and mid-haul flights +55.3% • Mostly domestic segment, 5.2 12.3% Low Cost selected international 5.2 3.3 routes • Point-to-point carriage 9M 2017 9M 2018

• The Far East airline flying on • , +5.2% , short- and mid-haul direct Regional / Yuzhno-Sakhalinsk 1.2 1.3 international and domestic 1.3 3.0% Far-East routes • Flights to remote cities (local flights) 9M 2017 9M 2018 1 PAX contribution as of 9M 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 – increased traffic by almost two million PAX each. 8 Pobeda Airline: Acceleration of Growth

Overview of Pobeda Pobeda’s Network (Winter 2018/2019)

• Operating from Vnukovo airport (3rd Moscow airport by PAX) Petrozavodsk Network • Network comprising 84 routes (44 unique for the Group) • Additional expansion to international destinations (14 countries) 17 Kirov • 22 737-800 NG (30.09.2018) Moscow Perm Krasnoyarsk • Plans for 2 more aircraft to be delivered in Q4 2018 Ekaterinburg Fleet 49 Cheboksary Nizhnekamsk Novosibirsk Kaliningrad Chelyabinsk Kemerovo • Single class cabin • 189 seats per plane Eindhoven Berlin London Leipzig Ulan-Ude,  • 5.2 million PAX in 9M 2018 (+55.3% y-o-y) Cologne Key features Baden-Baden Karlovy Vary Salzburg • 9M 2018 PLF of 94.6% (+0.1 p.p. y-o-y) Memmingen Bratislava Rostov and Innsbruck • International RPK is 23% of total Pobeda traffic Astrakhan achievements in Bergamo Venice Min.Vody • Active development of intra-region flights, and international flights from Pisa Nazran Tivat Vladikavkaz Makhachkala 9M 2018 the regions Girona Rome • Accelerated expansion in domestic and international segments 2023 Goals • c25-30 mln PAX annually Larnaca Cities where the airline operates to Base cities with >10 routes served from city XX Cities with <10 routes served from city (number of routes in circle) Growing Passenger Flows Strong Passenger Load Factor

thousand PAX PLF, %

55.3%

5,178 96.4%

62.9% 94.6% 58.4% 3,334 42.2% 93.7% 93.1% 1,755 2,021 1,402 986 1,108 1,240

Q1 Q2 Q3 9M Q1 2018 Q2 2018 Q3 2018 9M 2018 2017 2018 • Pobeda, the only Russian LCC, is a timely value proposition to cost conscious passengers. 9 “100 By 100” Growth Strategy: strategic targets to be achieved by 100th anniversary of Aeroflot

90-100 mln in 2023 Passenger traffic accelerated expansion of (25-30 mln by 2023)

International transit 5 mln - 2017 traffic ≈10-15 mln - 2023 3 bases opening by 2023: Sochi, Ekaterinburg, Novosibirsk; Regional bases 1 international hub in Krasnoyarsk 3x regional PAX

Fleet expansion ≈ 520 aircraft in 2023

Strengthens competitive edge Digitalization Helps increase operational efficiency

• Achieving our ambitious strategic goals will help Aeroflot Group reach new levels of operational efficiency and secure strong financial results 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 (9M 2018, y-o-y)

Murmansk Salekhard Arkhangelsk New Urengoy Syktyvkar Khanty Mansiysk Saint Petersburg Surgut Nizhnevartovsk Nizhnekamsk Perm Russia 5.1 % Ekaterinburg Magadan Kemerovo MOSCOW Samara Krasnoyarsk Kaliningrad Novosibirsk Novokuznetsk Kazan Tomsk Hamburg Berlin Voronezh Chelyabinsk Abakan Irkutsk P. Kamchatsky Minsk Saratov Kostanay Dusseldorf Frankfurt Orenburg Magnitogorsk Astana Barnaul Orly Volgograd Aktobe Khabarovsk Europe 10.8 % Munich Karaganda Paris Chisinau Rostov Atyrau Ulan Bator Harbin Yu. Sakhalinsk Vienna Astrakhan Milan Gelenzhdik Stavropol Nice Rimini Simferopol New York Anapa Adler Aktau Shymkent Beijing Vladivostok Rome Burgas Sochi Makhachkala Bishkek Barcelona Tivat Varna Mineral Waters Istanbul Yerevan Samarkand Krasnodar Dalian Washington Antalya Tokyo Asia 2.0 % Teheran Seoul Larnaca Beirut Busan Los Angeles Tel Aviv Delhi Shanghai

Miami Dubai Guangzhou North & Central America 9.1 % Havana Hong Kong Hanoi

CIS Bangkok 2.8 % Ho Chi Minh City Phuket

Male Middle East & Africa 16.6 % Aeroflot routes Rossiya routes Total 6.8 % routes

Average Scheduled Flight Frequency per Route (Aeroflot Group ex-Pobeda) Oslo Helsinki Increase in Group frequencies by 13.4% was mainly supported by expansion of the number of frequencies in domestic Tallinn segment (+16.0%) and in the sector of long-haul routes (+20.4%). Copenhagen MOSCOW Hamburg Kaunas Minsk Amsterdam Hannover Berlin 9M 2017 9M 2018 London Dusseldorf Warsaw Brussels Frankfurt Prague 16.0% Paris Stuttgart Vienna Chisinau 12.2% Zurich Munich 13.4% Geneva Lyon Milan Venice Belgrade 11.5% Nice 15.2 BolognaSplit Zagreb 20.4% Barcelona Sofia 13.1 13.1 13.6 Rome Tivat 12.1 Madrid Thessaloniki Istanbul Tbilisi 11.5 11.0 Valencia 9.8 Lisbon Alicante Athens 8.2 Malaga Antalya 6.8 Heraklion Larnaca

Tenerife

Total scheduled International Domestic Medium-haul Long-haul Note: 1 Scheduled flights of Aeroflot Group (excluding Pobeda LCC) • Accelerated growth of destinations, sustained focus on increase in frequencies on scheduled routes. • Aeroflot Group operates flights to 173 unique destinations in 57 countries (in 2018/2019 winter schedule, incl. 12 Russia and new destinations launched in 2018). Network Expansion – Summer 2018 and Winter 2018/2019

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

Bukhara Cairo () Nalchik (Russia) 56 7 1 1 8 (Uzbekistan) 3 flights per week 7 flights per week 2 flights per week Rostov 42 7 Vladikavkaz Saransk (Russia) 2 2 (Russia) 9 Osh (Kyrgyzstan) 14 flights per week 7 flights per week 7 flights per week N.Novgorod 35 7

3 Naples (Italy) 3 Grozny (Russia) 10 Colombo (Sri Lanka) Kaliningrad 38 4 7 flights per week 7 flights per week 5 flights per week

Ufa 35 7 Izhevsk (Russia) Gothenburg Verona (Italy) 11 4 4 14 flights per week (Sweden) 7 flights per week 7 flights per week Prague 35 7 Makhachkala 5 Burgas (Bulgaria) 5 (Russia) 12 Ljubljana (Slovenia) Rome 28 7 7 flights per week 21 flights per week 7 flights per week

Kyzylorda Nazran (Russia) Milan 28 7 () 13 Dublin (Ireland) 6 6 7 flights per week 4 flights per week 7 flights per week Istanbul 14 14 St.Pete – London Denpasar 7 (LGW) 7 Ulyanovsk (Russia) 14 (Indonesia) Antalya 14 7 7 flights per week 14 flights per week 3 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 2018/2019 winter schedule the Group launched 14 new destinations 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 9M 2018 16.0x 19.1x 21.2x 20.9x 22.6x 44.2% 42.9% 43.7% 42.1% 41.5% 25.5 5.3% 24.2 23.1 24.2 22.9 13.5% 12.1% 11.8% 12.2% 11.6% 18.1 17.0 17.0 16.1 16.2 6.9% 16.7% 16.9% 17.5% 18.0% 16.3%

7.6% 14.0 12.4 12.5 13.1 13.0 14.0% 13.1% 13.6% 13.5% 13.6%

2015 2016 2017 9M 2017 9M 2018 2015 2016 2017 9M 2017 9M 2018 Domestic - Domestic International - Domestic / Domestic - International International Domestic Combined Connectivity ratio International - International … Backed by Convenient Location of Aeroflot Hub Increase in International – International Traffic

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

9.3% 4.4 3.7 3.6 3.3 3.6

From/To Paris London Vienna Stockholm Rome 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 2015 2016 2017 9M 2017 9M 2018 Hong Kong Via Dubai 18:30 17:10 15:30 16:00 15:45 Pickup in point-to-point demand combined with expanding capacities Source: Company data, IMF, Eurostat, RITA, Russian State Statistics Service, Rosaviatsia. resulting in growing international transfer volumes 1 Data for Aeroflot airline’s own flights; Aeroflot adopted new frequency per route and connectivity ratio calculation methodology and previous periods were recalculated retrospectively • Increasing flight frequency improves connectivity and supports Aeroflot’s traffic growth in Sheremetyevo airport. • Advantageous geographical positions and Group’s efforts support traffic growth on key European and Asian 14 destinations. 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 – Q3 & 9M 2018

Aeroflot airline Aeroflot Group Indicator Unit Q3 Q3 9M 9M Q3 Q3 9M 9M Y-o-Y Y-o-Y Y-o-Y Y-o-Y 2017 2018 2017 2018 2017 2018 2017 2018

Passenger Traffic th PAX 9,544 10,547 10.5% 24,789 26,770 8.0% 15,378 17,393 13.1% 38,340 42,249 10.2%

International Routes th PAX 4,950 5,336 7.8% 12,957 13,688 5.6% 6,975 7,700 10.4% 17,221 18,759 8.9%

Domestic Routes th PAX 4,594 5,211 13.4% 11,832 13,082 10.6% 8,402 9,693 15.4% 21,119 23,490 11.2%

Passenger Turnover mn pkm 26,372 28,599 8.4% 69,173 73,525 6.3% 39,990 44,441 11.1% 99,382 108,428 9.1%

International Routes mn pkm 17,055 18,207 6.8% 45,620 47,958 5.1% 22,884 24,793 8.3% 58,408 62,725 7.4%

Domestic Routes mn pkm 9,317 10,392 11.5% 23,553 25,567 8.6% 17,105 19,648 14.9% 40,974 45,703 11.5%

Passenger Capacity mn ASK 30,267 32,463 7.3% 83,556 90,088 7.8% 45,035 49,411 9.7% 118,754 129,393 9.0%

International Routes mn ASK 19,897 21,236 6.7% 55,788 60,054 7.6% 26,078 28,219 8.2% 69,820 76,180 9.1%

Domestic Routes mn ASK 10,370 11,227 8.3% 27,768 30,034 8.2% 18,956 21,192 11.8% 48,934 53,213 8.7%

Passenger Load Factor % 87.1% 88.1% 1.0 p.p. 82.8% 81.6% (1.2) p.p. 88.8% 89.9% 1.1 p.p. 83.7% 83.8% 0.1 p.p.

International Routes % 85.7% 85.7% - 81.8% 79.9% (1.9) p.p. 87.8% 87.9% 0.1 p.p. 83.7% 82.3% (1.3) p.p.

Domestic Routes % 89.8% 92.6% 2.7 p.p. 84.8% 85.1% 0.3 p.p. 90.2% 92.7% 2.5 p.p. 83.7% 85.9% 2.2 p.p.

Tonne-Kilometres mn tkm 2,642 2,850 7.9% 6,977 7,372 5.7% 3,917 4,357 11.2% 9,817 10,697 9.0%

International Routes mn tkm 1,720 1,834 6.6% 4,627 4,851 4.9% 2,248 2,441 8.6% 5,787 6,217 7.4%

Domestic Routes mn tkm 922 1,016 10.3% 2,350 2,521 7.3% 1,669 1,916 14.8% 4,030 4,480 11.2%

Revenue Flights flights 64,944 73,270 12.8% 180,689 200,651 11.0% 101,921 114,717 12.6% 276,779 305,730 10.5%

International Routes flights 31,839 35,946 12.9% 89,744 98,963 10.3% 42,447 48,419 14.1% 114,732 128,358 11.9%

Domestic Routes flights 33,105 37,324 12.7% 90,945 101,688 11.8% 59,474 66,298 11.5% 162,047 177,372 9.5%

Flight Hours hours 185,732 206,592 11.2% 520,666 572,003 9.9% 279,066 311,853 11.7% 756,305 833,776 10.2%

16 Operating Data – October & 10M 2018

Aeroflot airline Aeroflot Group Indicator Unit October October 10M 10M October October 10M 10M Y-o-Y Y-o-Y Y-o-Y Y-o-Y 2017 2018 2017 2018 2017 2018 2017 2018

Passenger Traffic th PAX 2,913 3,145 8.0% 27,702 29,915 8.0% 4,301 4,792 11.4% 42,641 47,041 10.3%

International Routes th PAX 1,505 1,574 4.6% 14,462 15,262 5.5% 1,997 2,162 8.3% 19,218 20,922 8.9%

Domestic Routes th PAX 1,407 1,571 11.6% 13,240 14,653 10.7% 2,304 2,629 14.1% 23,423 26,119 11.5%

Passenger Turnover mn pkm 8,167 8,590 5.2% 77,339 82,115 6.2% 11,271 12,304 9.2% 110,652 120,732 9.1%

International Routes mn pkm 5,306 5,468 3.1% 50,926 53,427 4.9% 6,803 7,174 5.5% 65,210 69,899 7.2%

Domestic Routes mn pkm 2,861 3,122 9.1% 26,413 28,688 8.6% 4,468 5,130 14.8% 45,442 50,832 11.9%

Passenger Capacity mn ASK 10,029 10,589 5.6% 93,585 100,677 7.6% 13,712 14,855 8.3% 132,466 144,247 8.9%

International Routes mn ASK 6,607 6,912 4.6% 62,395 66,966 7.3% 8,330 8,863 6.4% 78,150 85,043 8.8%

Domestic Routes mn ASK 3,422 3,677 7.5% 31,190 33,711 8.1% 5,382 5,991 11.3% 54,316 59,204 9.0%

Passenger Load Factor % 81.4% 81.1% (0.3) p.p. 82.6% 81.6% (1.0) p.p. 82.2% 82.8% 0.6 p.p. 83.5% 83.7% 0.2 p.p.

International Routes % 80.3% 79.1% (1.2) p.p. 81.6% 79.8% (1.8) p.p. 81.7% 80.9% (0.7) p.p. 83.4% 82.2% (1.2) p.p.

Domestic Routes % 83.6% 84.9% 1.3 p.p. 84.7% 85.1% 0.4 p.p. 83.0% 85.6% 2.6 p.p. 83.7% 85.9% 2.2 p.p.

Tonne-Kilometres mn tkm 838 878 4.8% 7,815 8,250 5.6% 1,134 1,234 8.8% 10,951 11,930 8.9%

International Routes mn tkm 548 565 3.1% 5,175 5,417 4.7% 685 724 5.7% 6,472 6,940 7.2%

Domestic Routes mn tkm 290 312 7.9% 2,640 2,833 7.3% 449 510 13.5% 4,479 4,990 11.4%

Revenue Flights flights 21,844 24,244 11.0% 202,533 224,895 11.0% 32,292 36,092 11.8% 309,071 341,822 10.6%

International Routes flights 10,709 11,728 9.5% 100,453 110,691 10.2% 13,778 15,420 11.9% 128,510 143,778 11.9%

Domestic Routes flights 11,135 12,516 12.4% 102,080 114,204 11.9% 18,514 20,672 11.7% 180,561 198,044 9.7%

Flight Hours hours 62,966 68,484 8.8% 583,631 640,487 9.7% 88,980 98,393 10.6% 845,285 932,170 10.3%

17 9M 2018 Operating Data by Region (Scheduled Routes)

Americas Russia CIS

12.4 % 12.9 % 9.9 % 9.7 % 6.6 % 6.0 % 4.1 % 2.4 p.p. 0.7 % 0.5 % 0.2 p.p.

Passengers RPK ASK PLF Passengers RPK ASK PLF (3.0) p.p. carried carried Passengers RPK ASK PLF carried Performance of North and Central American Russian market is continuing to show consistent Positive contribution to regions’ KPIs comes from market was supported by additional frequency to growth in 2018 with strong PLF performance on increased frequencies of Aeroflot airline and Miami in Summer schedule and increased ASK the back of efficient capacity management and stronger demand to local destinations, slightly to other destinations, which weighted on PLF. addition of new routes and frequencies. dimmed by subsidiaries’ operating program optimization. Europe Middle East Asia

16.5 % 13.4 % 12.2 % 10.7 % 7.4 % 7.0 % 2.6 % 2.0 % 1.7 % 0.3 p.p.

(2.2) p.p. (2.7) p.p. Passengers RPK ASK PLF carried Passengers RPK ASK PLF Passengers RPK ASK PLF carried carried European market performance benefited from Operating performance of the region significantly More traffic on key scheduled destinations launch of additional frequencies to key affected by increased frequencies to Istanbul, (Beijing, Seoul) as well as popular leisure destinations and from new destinations opening, Antalya and Dubai backed by strong demand. destinations (Male) amid material increase in putting slight pressure on PLF. PLF affected by stronger competition on select frequencies supportive for overall performance of routes. the region. Source: Data presented based on management accounting for scheduled flights of Aeroflot Group (excluding charter flights) • Strong operating performance on scheduled routes supported by FIFA World Cup and additionally influenced by selective route network adjustments and competition. 18 Aeroflot Group Scheduled Flights Revenue Units

Q3 Yield (PAX Revenue / RPK) Q3 RASK (PAX Revenue / ASK) RUB RUB 9.3% 9.6% 4.2% 5.9% 1.5% 3.86 (1.5)% 4.47 3.69 4.14 3.49 3.52 3.48 4.09 3.97 3.44 3.82 3.77

Domestic International Total Domestic International Total 9M Yield (PAX Revenue / RPK) 9M RASK (PAX Revenue / ASK) RUB RUB

9.8% 7.8% 5.6% 5.9% 3.5% 0.5% 4.18 3.36 3.81 3.88 3.21 3.67 3.12 3.50 3.52 3.01 3.03 2.91

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 Q3 and 9M 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 % 17.5% 23.1%

12.6% 9.7% 8.8% 9.8% 6.2% 5.8% 4.5%

(0.1)% (2.6)%(1.8)% (4.2)% 8.2% Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep 7.8% 7.9% 2017 2018 6.2% Aeroflot Airline Domestic Yield 5.1% 4.7% 4.4% RUB/RPK, Change y-o-y in % 7.8%

4.5% 4.1% 4.1% 0.4% 3.7% 0.0% 3.0% 2.8% 2.1% 1.8% 1.7% (1.3)% 1.1% 0.3% (2.4)% Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep 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 9M 2018 international segment was the main driver of Aeroflot growth: yields were in higher single-digit growth mode during the period and in June-July yield dynamics accelerated y-o-y supported by additional demand 20 associated with FIFA World Cup. Traffic Revenue Analysis

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

9M 2018 9M 2018, % of Q3 2017 Q3 2018 Y-o-Y Region 9M 2017 9M 2018 Y-o-Y Sheduled sch. revenue Passenger Flights 89.7% 62,086 71,101 14.5% Russia 137,374 155,892 13.5% 41.1%

37,319 45,267 21.3% Europe 88,151 106,577 20.9% 28.1%

18,158 21,419 18.0% Asia 49,525 56,011 13.1% 14.8% Cargo 3.0% 7,111 7,891 11.0% CIS 16,729 18,644 11.4% 4.9% Charter Passenger Flights 7.2% North and Central 8,323 10,243 23.1% 19,801 23,523 18.8% 6.2% America

Scheduled Traffic Revenue by POS Middle East and 6,313 7,518 19.1% 16,146 18,761 16.2% 4.9% 9M 20182 Africa 139,310 163,439 17.3% Total 327,726 379,408 15.8% 100.0% Sales in Russia Sales abroad 31.8% 31.8% Total Passenger Revenue (Scheduled + Charter, RUB mln) 9M 2018, % Q3 2017 Q3 2018 Y-o-Y Segment 9M 2017 9M 2018 Y-o-Y of revenue 63,976 73,633 15.1% Domestic 141,799 161,162 13.7% 39.3% Call center and ow n branches 3.6% 85,727 103,989 21.3% International 208,702 248,812 19.2% 60.7% Online 32.7% 149,702 177,622 18.7% Total 350,502 409,974 17.0% 100.0%

• In 9M 2018 revenue from scheduled passengers grew by 15.8% mainly driven by revenue growth on Russian, European and Asian markets. 21 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 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 4.1 4.8 7.7 5.1 7.0 Xiamen Airlines 5.3 6.4 6.5 6.2 6,2 5.6 361 5.6 325 5.6 289 232 251 247 Spirit Airlines 5.6 IndiGo 5.8 5.8 Azul 6.0 Airline 6.0 Lion Air 6.0 2013 2014 2015 2016 2017 9/30/2018 6.1 6.2 Aeroflot Airline Fleet in Operation 1 6.4 EasyJet Europe 6.5 Aircraft Average Age 7.5 5.2 10.0 10.5 4.4 4.2 4.1 4.1 4,1 10.7 12.0 224 250 189 13.0 165 140 150 13.8 Jazz 13.9 14.9 16.3 2013 2014 2015 2016 2017 9/30/2018 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 October 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-Sept-18 31-Dec-17 31-Dec-17 Wide-body 39 18 18 39 - 57 52 5 A330 22 - 8 14 - 22 22 - 17 9 10 16 - 26 21 5 - 9 - 9 - 9 9 - Narrow-body (medium-haul) 161 79 18 222 - 240 222 18 - 36 9 27 - 36 36 - Airbus A320 80 5 - 85 - 85 80 5 39 - 9 30 - 39 38 1 42 38 - 80 - 80 68 12 Narrow-body (regional) 50 14 - 58 6 64 51 13 DHC 8 - 11 - 5 6 11 11 - DHC 6 - 3 - 3 - 3 3 - SSJ 100 50 - - 50 - 50 37 13 Total fleet1 250 111 36 319 6 361 325 36 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- 18% body (medium- Aeroflot Operating haul) 88% 66% 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 Q1-Q3 2018 (Actual) Q4 2018 (Plan) Current (1) Delivery Phase out fleet Delivery Phase ~520 aircraft out

Wide-body (long-haul) 5 - 57 1 -

A-330 - - 22 - - B-777 5 - 26 1 - B-747 - - 9 - - 361

Narrow-body (medium-haul) 28 (10) 240 8 (8)

A-319 - - 36 - (2)

A-320 10 (5) 85 1 (4)

A-321 5 (4) 39 - (2)

B-737 13 (1) 80 7 -

Narrow-body (regional) 13 - 64 - (1)

SSJ-100 13 - 50 - -

DHC-8 - - 11 - (1)

DHC-6 - - 3 - -

TOTAL 46 (10) 361 9 (9)

Net additions (1) + 36 aircraft no net addition 30.09.2018 2019E 2020E 2021E 2022E 2023E

1 As of 30.09.2018, not including aircraft leased or subleased to other operator (1 An-24 and 5 An-148 ). 2 According to existing strategy. Not including aircraft leased or subleased to other operator. Number of planes in 2023 is average for the year.

• 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 Financial Highlights: Q3 and 9M 2018

RUB mln Q3 2017 Q3 2018 Change 9M 2017 9M 2018 Change (where applicable)

15,378 17,393 13.1% Passenger Traffic (mln PAX) 38,340 42,249 10.2%

169,915 200,523 18.0% Revenue 404,773 466,345 15.2%

149,702 177,622 18.7% Traffic Revenue 350,502 409,974 17.0%

54,958 64,594 17.5% EBITDAR1 101,016 110,957 9.8%

32.3% 32.2% (0.1) p.p. EBITDAR1 margin 25.0% 23.8% (1.2) p.p.

37,902 40,567 7.0% EBITDA 53,306 47,189 (11.5)%

22.3% 20.2% (2.1) p.p. EBITDA margin 13.2% 10.1% (3.1) p.p.

24,261 27,718 14.2% Net income 27,149 22,490 (17.2)%

• Financial results of 9M 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 particularly visible in Q3 2018. 27 1 EBITDAR = EBITDA + operating lease expenses. Revenue Growth Decomposition

Revenue by Key Factors Revenue by Business Segments RUB mln RUB mln 15.2% 15.2%

8.8% + 4.7% + 0.9% + 0.9% 12.8% + 1.9% + 0.4% + 0.1%

466,345 3,450 3,595 466,345 19,056 51,682 7,790 1,539 561 35,472 404,773 Domestic More traffic 404,773 served under Depreciation of yield up by Charter RPK up Cargo 1.9%, agreements by 4.9% y-o-y, RUB in 9M 2018 with airlines volumes y-o-y by c5% vs. international strong yields +14.2% up by 11.0% Growth in USD and by Growth across geographies: operating c13% vs. EUR Russian revenue + 13.5% metrics: International revenue +17.4% RPK + 9.1% PAX + 10.2%

9M 2017 Volume Currency Pricing Other 9M 2018 9M 2017 Scheduled Charter Cargo Other 9M 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 28 Operating Costs

Change Change Change Operating Expense Change % of Total OpEx Q3 2017 Q3 2018 ex. FX 9M 2017 9M 2018 ex. FX y-o-y (RUB mln If not stated otherwise) y-o-y (9M 2018) & NRE & NRE

33,727 54,080 60.3% 49.9% Fuel 89,944 131,965 46.7% 41.3% 30.7%

102,024 109,318 7.1% 2.5% Opex (ex. Fuel) 272,967 297,534 9.0% 6.4% 69.3%

Aircraft, traffic and passenger 28,744 31,634 10.1% 5.7% 74,706 80,268 7.4% 3.5% 18.7% servicing

22,186 19,656 (11.4)% (7.1)% Staff 60,509 61,315 1.3% 4.2% 14.3%

17,056 24,027 40.9% 27.0% Operating lease 47,710 63,768 33.7% 27.0% 14.8%

10,566 11,750 11.2% 1.1% Maintenance1 26,247 32,009 22.0% 16.0% 7.5%

9,339 8,400 (10.1)% (13.8)% SG&A2 23,846 22,478 (5.7)% (8.2)% 5.2%

3,738 3,442 (7.9)% (8.0)% D&A and customs duties 11,444 10,343 (9.6)% (9.6)% 2.4%

10,395 10,409 0.1% (6.5)% Other expenses3 28,505 27,353 (4.1)% (5.5)% 6.4%

135,751 163,398 20.4% 14.3% Total Opex 362,911 429,499 18.3% 15.1% 100.0%

1 Normalized change in maintenance spending (including change in maintenance reserve in Other operating expenses line) in 9M 2018 amounts to +12% y-o-y, in Q3 2018 +2% 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 9M 2018 operating costs were significantly impacted by expansion of operations, fuel price increase and growing fleet of 29 the Group. FX dynamics also affected key operating expenses lines. Group Unit Costs

Q3 2017 Q3 2018 Change Operating Expense per ASK (CASK), RUB 9M 2017 9M 2018 Change 0.75 1.09 46.1% Fuel 0.76 1.02 34.7% 2.27 2.21 (2.3)% Opex (ex. Fuel): 2.30 2.30 0.0% 0.64 0.64 0.3% Aircraft, Traffic and Passenger Servicing 0.63 0.62 (1.4)% 0.49 0.40 (19.2)% Staff 0.51 0.47 (7.0)% 0.38 0.49 28.4% Operating Lease 0.40 0.49 22.7% 0.23 0.24 1.4% Maintenance 0.22 0.25 11.9% 0.21 0.17 (18.0)% SG&A 0.20 0.17 (13.5)% 0.08 0.07 (16.1)% D&A and Customs Duties 0.10 0.08 (17.1)% 0.23 0.21 (8.8)% Other Expenses 0.24 0.21 (11.9)% 3.01 3.31 9.7% Total Opex 3.06 3.32 8.6%

8.6% (2.8)% 5.6%

0.09 (0.02) (0.03) 0.03 (0.01) (0.03) (0.11) 0.26 0.02

(0.04)

3.32 3.23 3.06 3.06

Reported CASK Staff Fuel Maintenance Aircraft, Traffic Operating D&A and CD* Admin & Sales Other Costs Reported CASK FX NRE** CASK 9M 2018 Reported CASK 9M 2017 and Passenger Lease & Marketing 9M 2018 ex. FX and 9M 2017 Servicing NRE** * Customs duties ** 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 8.6% from RUB 3.06 in 9M 2017 to RUB 3.32 in 9M 2018 on the back of fuel, maintenance and operating lease expenses pressure. 30 Fuel Cost Management

Flight Hours Fuel Consumption per ASK Fuel Consumption per RTK

(thousand hours) (gr/ASK) (gr/RTK) 10.2% (1.2)% (1.2)%

834 275.4 272.1 22.8 22.5

756

9M 2017 9M 2018 9M 2017 9M 2018 9M 2017 9M 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 44 353 • Majority of fuel purchased in Russia and almost all 40 000 fuel at international airports supplied at formula- linked price - Jet fuel price = NW Europe (FOB 32 484 Intl Rotterdam) price x Discount x FX rate2 x 1.183 + 30 000 Storage/Fuelling/Supply fees (if any of these applicable)

1 • Increasing average fuel price per tonne. Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 9M Aeroflot Airline: (WA) 2018 2017 2018 • 9M 2018: 44,353 RUB (+36.5% y-o-y). 56.6 56.8 57.1 60.9 62.3 62.8 62.8 66.5 67.6 USD/RUB • Q3 2018: 48,019 RUB (+49.4% y-o-y). 69.1 65.7 66.9 71.8 77.0 75.9 75.0 73.8 79.1 Brent (USD) • Aeroflot Group: • 9M 2018: 45,252 RUB (+36.0% y-o-y). Source: Bloomberg, Company data 2 USD/RUB exchange rate as per the Central Bank of Russia 1 Weighted average price for 9M 3 Assuming 18% VAT rate • Q3 2018: 48,501 RUB (+47.5% y-o-y). • Aeroflot is achieving efficiency gain in fuel costs as new aircraft are put into operation. 31 • Oil price and RUB fluctuations led to further upward pressure on jet fuel price in Q3 and 9M 2018. Headcount Overview

Aeroflot Group Headcount by Category Other non-airline 31-Dec-2017 30-Sep-2018 % personnel Flight crew 12.2% 9.9% Cabin crew 11,259 11,947 6.1 % 7,034 7,117 1.2 % Other airline Airport services personnel Technical maintenance and repair 4,702 5,196 10.5 % 13.7% Cabin crew Flight crew 3,846 4,042 5.1 % 29.3% Tickets and services sales, advertising 1,903 1,921 0.9 %

Other airline personnel (inc. airlines’ head office) 5,430 5,586 2.9 % Airport services 17.5% Other non-airline subsidiaries’ personnel 4,696 4,972 5.9 % Technical 1 Tickets and Total 38,870 40,781 4.9 % services sales, maintenance and 1 Aeroflot Group headcount table excludes Aeroflot School headcount amounting to 181 employees as at 31.12.2017 advertising repair and 198 employees as at 30.09.2018. 4.7% 12.7% Traffic Revenue / Average Airlines’ Headcount PAX Traffic / Average Airlines’ Headcount (million RUB per employee, annualized to 30.09.2018) (passengers per employee, annualized to 30.09.2018)

9.7% 4.2%

15.4

1,554 14.0 1,491

30.09.2017 (LTM) 30.09.2018 (LTM) 30.09.2017 (LTM) 30.09.2018 (LTM) • Improvement in labour productivity has resulted in increase of key performance indicators in 9M 2018. 32 • Aeroflot Group headcount increased by 6.2% vs. September 30, 2017. EBITDA Evolution

(RUB mln)

Total effect on revenue Total effect on costs ∑=61,572 RUB mln ∑=(67,687) RUB mln

Net volume and price effect Net FX effect Net volume and price effect ∑=42,516 RUB mln ∑=4,802 RUB mln ∑=(53,434) RUB mln

19,056 (14,253)

(37,107) 3,595 3,450 Volume effect 35,472 (8,441) RUB mln

Price effect (28,306) RUB mln (754) (2,596) (12,877)

(4,187) 1,962 2,124 (2,377)

53,306 47,189 44,812

Reported Volume Pricing Other FX benefit on FX drag on Fuel* Staff* Aircraft, Operating Maintenance* Admin & Other OPEX* Reported NRE** Adjusted EBITDA 9M revenue costs Traffic and Leases* Sales & EBITDA 9M EBITDA 9M 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 33 fuel price and operating lease costs growth. Operating and Free Cash Flows

(RUB mln)

Billion RUB 9M 2018 Billion RUB 9M 2018 Other adjustments before working capital changes, incl. 10.2 Working capital changes and income tax, incl. (18.8) Effect from revenue hedging (finance lease hedge accounting) 4.9 Change in accounts receivable and prepayments (17.5) Change in provisions 8.1 Change in accounts payable and accrued liabilities 3.1 Other (2.8) Change in expendable spare parts and inventories (1.2) Change in tax and restricted cash (3.2)

(31.3)%

10,160 (18,801)

4,554 535 12,260 290 9,590 (8,592) 923 3,168 64,254

54,882 44,130 36,081 30,043

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 9M Flow 9M 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 9M 2018 on the back of growing business volumes and solid operating performance. 34 Pobeda Financial Results

Increasing PAX Traffic RASK1 dynamics Growing Revenues of LCC Segment

Million passengers RUB

5.2 Q3 2017 Q3 2018 Change RUB mln 9M 2017 9M 2018 Change 2.64 2.66 3.3 7,733 12,747 64.8% Revenue 16,002 26,483 65.5%

4,660 5,464 17.3% EBITDAR1 6,703 8,093 20.7% 9M 2017 9M 2018 9M 2017 9M 2018

PAX up by 55.3% in 9M 2018 RASK up by 0.6% in 9M 2018 EBITDAR 60.3% 42.9% (17.4) p.p. 41.9% 30.6% (11.3) p.p. margin Increasing ASK CASK dynamics Billion ASK RUB 3,823 3,796 (0.7)% EBITDA 4,230 3,862 (8.7)%

10.0 2.27 1.94 EBITDA 6.1 49.4% 29.8% (19.6) p.p. 26.4% 14.6% (11.8) p.p. margin

3,219 3,080 (4.3)% Net income 3,619 3,255 (10.1)%

9M 2017 9M 2018 9M 2017 9M 2018

41.6% 24.2% (17.4) p.p. Net margin 22.6% 12.3% (10.3) p.p. ASK up by 64.5% in 9M 2018 CASK up by 16.8% in 9M 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 9M 2018. 35 Leverage and Liquidity

Debt Profile1 Net Debt / LTM EBITDA2

0.9 RUB mln 31-Dec-2017 30-Sep-2018 Change 0.9 0.7 Borrowings 3,181 3,502 10.1% 0.6

Finance Lease Liabilities 100,689 92,449 (8.2)%

Pension Liabilities 922 920 (0.2)% n/m Total Debt 104,792 96,871 (7.6)% 30-Sep-2017 31-Dec-2017 31-Mar-2018 30-Jun-2018 30-Sep-2018 Cash and Short Term 54,909 60,051 9.4% Investments RUB mln 31-Dec-2017 31-Mar-2018 30-Jun-2018 30-Sep-2018 2 49,883 29,470 (656) 36,820 Net Debt 49,883 36,820 (26.2)% Net Debt EBITDA 2 56,015 49,420 47,234 49,898 Debt breakdown by currency Finance Lease Repayment Schedule (RUB billion)3

Borrowings Finance Lease 13% 2% 44.1

14.8 14.6 14.7

4.2

98% 87% 2018 2019 2020 2021 2022+ RUB USD 1 31-Dec-2017 exchange rate - 57.60 RUB per USD , 30-Sep-2018 exchange rate - 65.59 RUB per USD 3 Not including interest; future payments in dollars converted into roubles at exchange rate of 65.59 RUB per USD 2 Net debt does not include capitalised operating lease expenses; based on annualized EBITDA • Net Debt decreased by 26.2% due to decrease in finance lease obligations as well as accelerated growth in cash position. 36 • Cash position of RUB 60.1 billion and undrawn credit lines of RUB 81.5 billion. 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 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. 38 Key Operating Data of Subsidiary Airlines

Rossiya Airline Pobeda Airline Aurora Airline Indicator Unit 9M 2018 Y-o-Y 9M 2018 Y-o-Y 9M 2018 Y-o-Y

Passenger Traffic th PAX 9,046 0.3% 5,178 55.3% 1,255 5.2%

International Routes th PAX 3,563 6.6% 1,195 92.3% 314 4.4%

Domestic Routes th PAX 5,483 (3.5)% 3,983 46.8% 941 5.4%

Passenger Turnover mn pkm 23,520 3.9% 9,436 64.7% 1,947 5.8%

International Routes mn pkm 11,706 6.7% 2,610 90.0% 451 2.5%

Domestic Routes mn pkm 11,814 1.3% 6,826 56.7% 1,496 6.8%

Passenger Capacity mn ASK 26,791 0.6% 9,972 64.5% 2,542 1.0%

International Routes mn ASK 12,723 6.7% 2,782 84.9% 621 3.1%

Domestic Routes mn ASK 14,068 (4.3)% 7,190 57.7% 1,921 0.4%

Passenger Load Factor % 87.8% 2.7 p.p. 94.6% 0.1 p.p. 76.6% 3.4 p.p.

International Routes % 92.0% - 93.8% 2.5 p.p. 72.7% (0.4) p.p.

Domestic Routes % 84.0% 4.6 p.p. 94.9% (0.6) p.p. 77.9% 4.7 p.p.

Flight Hours hours 156,363 (0.7)% 70,210 63.5% 35,201 (0.2)%

39 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 finalized transfer of the majority of own domestic flights to the new Terminal B on November 15, 2018, • 40 leaving only eight daily flights to the Far East of Russia to ensure more efficient connections. Fleet Expansion Commitments

Delivery/Phase-out Schedule in Accordance with Existing Contracts

9M 2018 (Actual) 4Q 2018 (Plan) 2019 (Plan) 2020 (Plan) 2021 (Plan) Current Type of aircraft Phase 1 Phase Phase Phase Phase Delivery fleet Delivery Delivery Delivery Delivery out out out out out Wide-body (long-haul) 5 - 57 1 - 2 (3) 10 (4) 8 (3) A-330 - - 22 - - - (3) - (4) - (3) B-777 5 - 26 1 - 2 - 2 - 1 - B-747 - - 9 ------A-350 ------8 - 7 - Narrow-body (medium-haul) 28 (10) 240 8 (8) 10 (18) 15 (14) 15 (18) A-319 - - 36 - (2) - (4) - (3) - (4) A-320 10 (5) 85 1 (4) 1 (9) - (11) - (7) A-321 5 (4) 39 - (2) - (4) - - - (3) B-737 13 (1) 80 7 - 9 (1) 9 - 8 (4) МС-21 ------6 - 7 - Narrow-body (regional) 13 - 64 - (1) 12 (3) 12 (1) 12 - SSJ-1002 13 - 50 - - 10 - 12 - 12 - DHC-8 - - 11 - (1) - (3) - (1) - - DHC-6 - - 3 - - 2 - - - - - TOTAL 46 (10) 361 9 (9) 24 (24) 37 (19) 35 (21) Notes: 1As of 30.09.2018; Not including 1 An-24 , 5 An-148 2 2019+ additions are subject to corporate approval

• Aeroflot Group continues to intelligently manage capacity additions and develop its fleet taking into account market trends and opportunities. 41 Aeroflot Group Scheduled Flights Revenue Units

9M Yield (PAX Revenue / RPK) 9M RASK (PAX Revenue / ASK) RUB RUB 9.8% 7.8% 5.6% 5.9% 3.5% 0.5% 4.18 3.36 3.81 3.88 3.21 3.67 3.12 3.50 3.52 3.01 3.03 2.91

Domestic International Total Domestic International Total

9M Yield ex. Pobeda (PAX Revenue / RPK) 9M RASK ex. Pobeda (PAX Revenue / ASK) RUB RUB 8.0% 10.4% 6.9% 7.1% 2.3% 4.23 5.2% 4.00 3.38 3.83 3.27 3.73 3.13 3.60 3.68 3.10 3.05 2.95

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 Q3 and 9M 2018. 42 Aeroflot Group Blended Flights Revenue Units

Q3 Yield (Scheduled + Charter PAX Revenue / RPK) Q3 RASK (Scheduled + Charter PAX Revenue / ASK) RUB RUB

12.0% 6.8% 12.1% 8.1% 0.2% 3.0% 4.19 4.00 3.69 3.59 3.74 3.75 3.75 3.74 3.47 3.37 3.29 3.32

Domestic International Total Domestic International Total 9M Yield (Scheduled + Charter PAX Revenue / RPK) 9M RASK (Scheduled + Charter PAX Revenue / ASK) RUB RUB

11.0% 7.2% 9.3% 7.3% 1.9% 4.5% 3.27 3.97 3.17 3.78 3.03 2.99 2.95 3.46 3.53 3.57 3.53 2.90

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 Q3 and 9M 2018. 43 Net Income Evolution

(RUB mln)

61,011 561 (66,588)

(3,038) 966 (699) 105 2,984 39

27,149 22,490

Reported Net Traffic Revenue Other Revenue Operating Finance Income Finance Costs Hedging Result Revaluation of Taxation Other Reported Net Income 9M 2017 Expenses Equity Income 9M 2018 Investments and other

• Increase in revenue generated by growing volumes was offset by a less favorable cost environment which resulted in adjustment of the bottom line. 44 Reported and Adjusted Net Income Analysis

9M Adjusted Net Income Build-Up (RUB mln)

196 (144) (1,327) (561) (2,222)

22,492 18,434

Reported Net Income Discounting of receipt Change in the fair FOREX on PDP Insurance refund Recovery of part of Adjusted Net Income 9M 2018 of lease deposits value of investments (aircraft) the provision created 9M 2018 in equity securities for compensation under long-term motivation programs

• One-off effects had limited influence on Aeroflot Group 9M 2018 financial results. 45 IFRS 16 (accounting of leases)

• IFRS 16 will replace IAS 17 and is mandatory • Operating lease charges 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 • Almost all lease contracts will be recognized on • Aeroflot is analysing the implications of the new standard and balance sheet looking for 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 significant rent. • 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. 46 Board of Directors

Corporate Governance Board of Directors

Personnel and Audit Strategy Name Remuneration Committee Committee Committee General Meeting of Audit Committee Shareholders (3 members) Mikhail Poluboyarinov

Evgeny Ditrich Personnel and Remuneration Board of Directors Committee Vitaly Saveliev (3 members)

Strategy Committee Executive Board Igor Kamenskoy Member Chairman Member (9 members)

Roman Pakhomov Member Chairman

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

Yuri Slyusar Member

The Board of Directors is currently composed of 11 Maxim Sokolov Member members. The Board’s composition is well balanced Mikhail Voevodin Member Member from members’ background perspective.

Independent director according to the Russian Corporate Governance Code 47 Aeroflot Group Structure

PJSC Aeroflot(1)

Airlines Ancillary Companies

CJSC Aeromar JSC 75%-1 sh. 51% On-board sales/catering

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

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

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

A-Technics 100% Maintenance

• Over the past years the Group structure was refined with a focus on aviation assets and disposal of non-core assets, which is in compliance with the Group's strategy to streamline the core business • PJSC Aeroflot also owns 45.0% of JSC AeroMASh-AB (Aviation security), 2.43% of JSC Sheremetyevo International Airport (base airport), 3.85% of PJSC Transport Clearing House (mutual settlements between agencies and airlines) and 49.0% of LLC Transnautic Aero (cargo sales, in liquidation) Notes: (1) The Group as of 30-Sep-2018; Aeroflot Group consolidates all entities: PJSC Aeroflot and all subsidiaries. 48 (2) Non-operating entities Address: 119002, Russia, Moscow, Arbat St. 10 E-mail: [email protected] Website: www.aeroflot.ru