LONDON 12 DECEMBER 2019 Disclaimer This document has been prepared by PJSC “Aeroflot” (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. 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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 Agenda 9.20 – 10.00 Registration and Coffee 10.00 – 10.05 Introduction Andrey Napolnov Aeroflot Head of Investor Relations 10.05 – 10.40 Aeroflot Digital Transformation Vitaly Saveliev Aeroflot Chief Executive Officer 10.40 – 11.20 Market performance and Strategy 2023 Andrey Panov Aeroflot Deputy CEO for Strategy, Service and Marketing 11.20 – 12.10 Airlines, Network, Fleet and Finance Andrey Chikhanchin Aeroflot Deputy CEO for Commerce and Finance 12.10 – 12.40 Pobeda Overview Laszlo Szabo Pobeda Airlines Director of Services 12.40 – 13.30 Q&A Session 13.30 – 14.30 Lunch 3 Vitaly Saveliev Chief Executive Officer 4 Global Aviation Trends and Aeroflot Group Highlights Passenger traffic globally and in Europe Passenger traffic in Russia (incl. foreign carriers) and of Aeroflot Group Europe CAGR World CAGR Russia CAGR Group CAGR 4.6 ~147 5.5% for 2009-2019 6.7% for 2009-2019 4.4 10.0% for 2009-2019 18.6% for 2009-2019 137.0 4.1 3.8 123.7 3.6 111.8 3.3 107.2 103.7 3.1 102.8 3.0 2.8 91.6 2.6 2.4 80.1 70.5 ~61 56.7 55.7 50.1 43.4 1.2 39.4 1.1 1.0 1.0 34.7 0.9 0.9 31.4 0.8 0.8 0.8 27.5 0.7 0.7 14.1 16.4 11.1 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019E (forecast) Europe, bn PAX World, bn PAX Russia, mn PAX Aeroflot Group, mn PAX The Russian air passenger transportation market is on a recovery trend. Aeroflot Group’s traffic maintains a robust growth 5 Aeroflot: Yesterday and Today Passenger load factor, % Aeroflot Group PAX, mn Employees per one million PAX Workforce Productivity +18.2% 5.0x (61.1)% 82.7 55.7 1,744 64.5 678 11.1 2009 2018 2009 2018 2009 2018 The transformation enabled Aeroflot to regain its positions and become a TOP 20 aviation group globally 6 Aeroflot’s Competitive Edge Aeroflot aircraft fleet Aeroflot fleet average age, years Fleet average age, years² 4.2 Hainan Airlines 4.6 Ethiopian Airlines 5.2 Shandong Airlines 5.3 253 Spirit Airlines 5.3 Sichuan Airlines 5.4 IndiGo 5.5 9.5 Xiamen Airlines 5.5 Shanghai Airlines 5.6 Qatar Airways 5.9 Emirates Airline 6.0 China Eastern Airlines 6.1 Avianca 6.2 Azul 6.2 EasyJet Europe 6.2 1161 Ethiad Airways 6.4 Lion Air 6.4 4.2 Shenzhen Airlines 6.7 China Southern Airlines 6.8 Air China 6.9 Garuda Indonesia 6.9 Vueling Airlines 6.9 Air India 7.0 Turkish Airlines 7.1 Ryanair 7.3 Singapore Airlines 7.3 2009 2018 2009 2018 EasyJet 7.7 Aeroflot operates the youngest fleet in the industry among airlines with the active fleet of 100+ aircraft Note: 1 26 Tu-154 (average age is 20 years), 6 Il-96 (average age is 14 years) ; 2 FlightGlobal data as of 01.10.2018 7 Airline Holding Establishment In 2016 we completed creation of Aeroflot Group as a unified airline holding Aeroflot Group operates across all segments of the aviation transportation market Aeroflot – premium Rossiya – mid-price Pobeda – low-cost Aurora – regional carrier carrier carrier carrier for the Far East Aeroflot Group is the largest and most efficient airline group in Eastern Europe 8 Aeroflot Group: 2023 Vision 1 Carry 90-100 mn passengers 2 Increase international transfer traffic to 10-15 mn PAX Launch regional bases in Sochi, Yekaterinburg and Novosibirsk 3 and an international hub in Krasnoyarsk 4 Put into operation 200 domestic aircraft (SSJ100 and MC-21) by 2026 5 Enhance digitalization of the Group Fleet Revenue RUB Strategic goal - increase 520 aircraft 1.3 trln market value of the Group Ongoing digital transformation is crucial for reaching the strategic targets of the Group 9 Achievements To Date: Digital Take-off and New Heights Aeroflot 2009 Aeroflot 2019 Flight management system 35% 100% of business Other IT of business processes are systems processes are automated automated Other production and commercial IT systems By 2019, key business processes at Aeroflot have been automated 10 Aeroflot IT Solutions SAP ERP development Aeroflot’s IT backbone 1. Accounting Aeroflot website, including mobile Corporate loyalty program 19. Network profitability 2. Lease accounting check-in 18. Occupational safety Single payment solution Agency loyalty program management 3. Procurement and inventory E-commerce platform 17. Internal control and risk Investor Relations website 4. HR management: Tax monitoring Mobile app Aircraft electronic customs clearance 5. Treasury Internet and IFE 16. OPS BI operational Tax monitoring reporting Client loyalty management system 6. Legal documentation B2P Cargo agent personal online 15. Roles and responsibilities interface Big Data based on IBM solutions 14. Consolidation of the 7. Contract management Maintenance and repair management Electronic flight bag Group’s accounts system Crew Tablet (SITA) 13. Financial accounting 8. Budgeting Electronic document flow and signature system Voice platform for a contact center 9. Revenue management for cargo Manager’s monitor – analytical tool 12. Procurement SAP ERP 11. Tax monitoring 10. Internal audit Sirax revenue management Resource management system at base airport SAP ERP ensures cross-functional digitalization of business processes Aeroflot is developing advanced IT solutions across all business segments Aeroflot is developing solutions for all its operational areas 11 Innovations: Aeroflot’s Digital Transformation Internet of things Artificial intelligence for aircraft operations Digitalization of flight management Aircraft Online MRO All flight documentation automatically uploaded to the aircraft’s computer and EFB 1 2 Digital profile Aircraft transmits all key operational information during the flight Inventory mgmt Engineering Work and logistics support MRO planning accomplishment Aircraft flight hours of no less than All relevant data is updated not only at the SVO hub but also at all other airports on and MRO the route MRO operations Aircraft Quality 12 hours per day management equipment management Each flight analysis is used to improve piloting techniques and safety maintenance Financial Streamline repair maintenance and airworthiness Quality control management Aeroflot is ranked among the TOP 5 Aircraft Digital copy Interfaces most punctual airlines in the world Readiness to exchange messages with A350 equipment online Data management Forecast Accumulation of statistics and further application of big data and predictive models to Computer improve fleet MRO 3 vision 4 models Implementation of Aeroflot’s flight digitalization platform creates a single informational environment Effect from commercial operation of the intellectual support system for aircraft operations is expected to for flight operations and aircraft servicing digitally be equivalent to commissioning of additional 3 aircrafts Creating a multi-purpose portal for executives Crew tablet for flight attendants on the basis of manager’s monitor flight schedule “Electronic Catering” module is being introduced throughout the flight load route network Development aircraft layout passenger information Personal interface Interactive displays including FFP status Online search Alarm indicators and alerts “Electronic In-flight Magazine” Integral performance metrics special meal orders Composite indicators service is under development Automated Board meeting preparation documentation work Creating a multi-purpose Manager’s Monitor provides senior executives with a modern digital tool