Q3 & 9M 2020 IFRS RESULTS
Transcript of Q3 & 9M 2020 IFRS RESULTS
A E R O F L O T G R O U PQ3 & 9M 2020 IFRS RESULTS
1 December 2020
Speakers:
Andrey Chikhanchin – Deputy CEO for Commerce and Finance
Andrey Panov – Deputy CEO for Strategy, Service and Marketing
Ivan Batanov – Head of Revenue Management
2
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.
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.
Disclaimer
3
Aeroflot Group Q3 2020 Highlights
Note: immaterial deviations throughout the presentation are explained by rounding
Total PAX Decline Strong Domestic PAX Recovery of Revenue Raising Liquidity
3.3x
25.5
84.9
18.5
10.1
80 bn
Q3 2019 Q3 2020 Q2 2020 Q3 2020
Million PAX Million PAX Billion RUB
In Q3 2020 the Group recovered a significant portion of operations and improved financial performance compared to Q2 raising additional liquidity to withstand headwinds of the coming low season.
70 bn
Proceeds from share placement
Loan agreements backed by state
guarantees
RUB
Q3 2019 Q3 2020
9.5 mln
10.3 mln
(7.3)%(45.3)%
4
1. Market Update and Operating Results
2. Network and Schedule Overview
3. Fleet Overview
4. Financial Performance
5. Appendix 1: Strategy 2028
6. Appendix 2
5
The market’s and Aeroflot Group’s performance substantially improved in Q3, though remained under pressure due to
ongoing restrictions for international operations.
23.1
9.2
4.5 3.6 3.4
12.4
AeroflotGroup
S7 Group Ural Airlines UTair Group ForeignCarriers
Others
10.3 9.5
8.30.6
18.5
10.1
Q3 2019 Q3 2020
25.817.9
21.0
5.2
46.7
23.1
9M 2019 9M 2020
23.1 22.7
24.8 2.6
47.8
25.3
Q3 2019 Q3 2020
International RoutesDomestic Routes
56.3 41.8
57.7
14.2
114.0
56.0
9M 2019 9M 2020
Overview of the Russian Market
Passenger Traffic: Market vs Aeroflot Group
Russian Air Transportation Market (million PAX)incl. PAX of Russian and Foreign Carriers and intl. transit PAX
Aeroflot Group (million PAX)
Key Market Players
Market Shares
(50.9)%
-23.7Change in PAX million
-2.8 -11.5
Foreign Carriers Others
9M 2019 9M 2020
Source: TCH, Aeroflot Group. Figures include foreign carriers’ traffic.
(45.3)%(50.7)%
-4.7
-2.9
-12.5
(47.1)%
41.0%
12.1%6.5%5.6%
13.0%
21.8%
41.2%
16.3%8.0%
6.3%
6.0%
22.2%
6
Source: TCH, Federal Air Transport Agency, Aeroflot Group calculationsSource: TCH, Federal Air Transport Agency, Aeroflot Group calculations
Domestic Market Recovery in Q3 2020
Total PAX Traffic Trends: Q2 vs Q3 Domestic PAX Traffic Trends: Q2 vs Q3
Million PAX
38.1
4.6
Q2 2019 Q2 2020
(87.9)%
47.8
25.3
Q3 2019 Q3 2020
(47.1)%
18.4
4.5
Q2 2019 Q2 2020
23.1 22.7
Q3 2019 Q3 2020
(75.8)% (1.5)%
Domestic segment which contributes around half of the total Russian market posted rapid recovery after easing of
domestic travel restrictions in June 2020.
Million PAX
7
Domestic markets RPK PLF (pp) PLF World share
World -43% -12% 70% 36.2%
Russia 7% -3 pp 82% 1.5%
China -3% -4 pp 79% 9.8%
Brazil -55% -1 pp 81% 1.1%
Japan -59% -20 pp 58% 1.1%
USA -65% -26 pp 57% 14.0%
Australia -89% -28 pp 54% 0.8%
Russian Domestic Market: Global Champion by Recovery Pace
Russian domestic market – the only one among key global markets to fully recover, already in August 2020 – just 1.5 months after the lockdown was over (based on IATA statistics).
Source: IATA, FAVT, data for Russian market is taken from FAVT, world market share is based on FY2019
Kaliningrad
+ 35%
Sochi
+41%Makhachkala
+25%
Murmansk
+ 15%
Source: based on FAVT and airport data
Anapa
+73%
5% 8%
(15%)
(87%) (84%)(59%)
(16%)
6% 7%
Jan Feb Mar Apr May Jun Jul Aug Sep
Russian domestic PAX has recovered almost immediately…
Source: TCH
… making Russian market the fastest to recover globally…
Domestic PAX, y-o-y
September 2020, y-o-y
… with PAX growth in various regions.
Selected Russian Airport Statistics (PAX), September,
y-o-y change
Kirov
+ 47%
Ulyanovsk
+ 47%
8
Aeroflot Group Performance Across Different Brands
1.3
0.6
50.4%
• Flagship carrier
• Premium product (4 Stars)
• High income and middle class
• Hub and spoke model
• Scheduled network under SU
(Aeroflot) code from
− Moscow (SVO)
− St. Petersburg (LED)
• Charter operations
Premium28.4
11.611.6
-59.1%
9.4
4.5
7.66.3
-52.2%
-16.7%
-52.2%
9M 2019 9M 2020
19.6%
27.4%
2.7%
4.5
6.3
0.6
• Point-to-point carriage
• Focus on domestic
segment and underserved
international routes
• Airline for communities in the
Russian Far East offering
flights
− between large cities
− to remote cities
Source: Aeroflot Group1 PAX contribution as of 9M 2020. Absolute number of passengers in million in green circle
9M 2019 9M 2020
9M 2019 9M 2020
9M 2019 9M 2020
Brand Business Model 9M 2020 PAX Contribution1 and Dynamics October 2020
Mid-price
Low Cost
Regional
-66% PAX
-69% ASK
-41% PAX
-47% ASK
+11% PAX
+7% ASK
-54% PAX
-42% ASK
In Q3 2020 the Group recorded continued recovery of the domestic segment, but the overall result for 9M 2020 was still
under pressure from international segment’s slower reopening.
9
2.02.5
3.02.5
0.4
3.4
Q1 Q2 Q3
2019 2020
Pobeda Airline: Timely Value Proposition
Growing PAX numbers from July 2020after restarting operations in June
Operating Indicators of October 2020
62
Krasnodar
Rostov
NazranMakhachkala
Astrakhan
Volgograd
KazanPerm
Chelyabinsk
Ekaterinburg
Surgut
Novosibirsk
Bergamo
Bratislava
Cologne
Memmingen
Girona
Samara
Cheboksary
Larnaca
Tivat
Saint Petersburg14
Nizhnekamsk
Moscow
VladikavkazTbilisi
Krasnoyarsk
Pisa
Base cities with >10 routes served from city
(number of routes in circle)
Baden-Baden
Ulan-Ude Karlovy VaryLeipzig
Venice
Kaliningrad
Eindhoven
Helsinki
Innsbruck
Kemerovo
Salzburg
Berlin
Rome
Kirov
Min.Vody
Petrozavodsk
Tomsk
XXCities with <10 routes served from city
Cities the airline operates flights to
Anapa
AntalyaBodrum
Bari
Cagliari
CataniaDalaman
Gelendzhik SochiGenova
Gazipaşa
Istanbul Gyumri
Omsk
Ostende
Palermo
Riga
Rimini
TyumenUlyanovsk
Varna
Batumi
Magnitogorsk
12
Total PAX dynamics in 2020Overview
34 B737NG aircraftwith single class cabin (189 seats)
6.3 mm PAXtransported in 9M 2020 (-16.7% y-o-y)
92.7% PLFLF remained high in 9M 2020 despite ongoing pressure
Source: Aeroflot Group
Beginning of 2020 route network
Traffic above 2019 levels
17 p.p. RPK mix shiftfrom international to domestic in 9M 2020 y-o-y
(82.5)% 12.1%22.2%
mn PAX, change y-o-y
10.6% 15.6% (4.2) p.p.
1 044,36 045
Traffic, th PAX Revenue flights,cycles
91.5%
PLF, %
Pobeda continues to lead the industry recovery leveraging its value proposition appealing to cost conscious passengers.
10
1. Market Update and Operating Results
2. Network and Schedule Overview
3. Fleet Overview
4. Financial Performance
5. Appendix 1: Strategy 2028
6. Appendix 2
11
Aeroflot routes
Rossiya routes
Aurora routes
Source: Aeroflot Group
Note: 1 Scheduled flights of Aeroflot Group in 9M 2020 vs. 9M 2019 (excluding Pobeda LCC)
Los Angeles
MOSCOW
Malaga
Alicante
Amsterdam
Brussels
Stockholm
AthensAntalya
Barcelona
Belgrade
Bologna
BudapestParis
Copenhagen
DresdenDusseldorf
Rome
Frankfurt
Geneva
Hannover
Hamburg
Helsinki
Heraklion
Istanbul
Larnaca
London
Lyon
Madrid
Munich
MilanNice
Oslo
Bucharest
Prague
Riga
Thessaloniki
SofiaSplit
Stuttgart
Berlin
Tbilisi
Tenerife
Tivat
Tallinn
Venice
Vienna
Valencia
Kaunas
Warsaw
Zagreb
Zurich
Lisbon
Havana
Washington
New York
Miami
Male
Phuket
Ho Chi Minh City
MOSCOW
Anapa
Abakan
Adler
Arkhangelsk
Astrakhan
Barnaul
Chelyabinsk
Belgorod
Magadan
Gelenzhdik
Khanty Mansiysk
Irkutsk
Kemerovo
Kaliningrad
Khabarovsk
Krasnoyarsk
Krasnodar
SamaraKazan
Saint Petersburg
Murmansk
Magnitogorsk
Mineral Waters
NizhnekamskNizhny Novgorod
Nizhnevartovsk
Novokuznetsk
New Urengoy
Novosibirsk
Perm
P. Kamchatsky
Orenburg
Rostov
Saratov
SyktyvkarSurgut
Simferopol
Salekhard
Stavropol
EkaterinburgTyumen
TomskUfa
Yu. Sakhalinsk
Volgograd
Voronezh
Vladivostok
Yakutsk
Aktobe
Almaty
Shymkent
Yerevan
Bishkek
Atyrau
Baku
KaragandaChisinau
KostanayMinsk
Aktau
SamarkandTashkent
Astana
Beirut
Dubai
Teheran
Tel Aviv
Bangkok
HanoiHong Kong
Guangzhou
Delhi Shanghai
Tokyo
Beijing
Seoul
Ulan Bator
Sochi
Frankfurt
Dalian
Harbin
Busan
Antalya
BarcelonaBurgas
Paris
Dusseldorf
Rome
Hamburg
Varna
Larnaca
Munich
MilanNice
Prague
Rimini
Berlin
TivatIstanbul
Vienna
Makhachkala
Orly
Omsk
Minsk
Chisinau
Aeroflot Group Network Adjustments
2020 Domestic Scheduled Network (flights per day, av.)# of Flights Evolution by Region, 9M 2020 y-o-y1
Beginning of 2020 route network
409
Q1 Q2 Q3
199
157
327
93
132
40
Despite recovery of domestic segment international flights have mostly been under continued pressure.
(47.1)%
(68.0)%
(70.7)%
(68.4)%
(69.8)%
(73.0)%
(27.9)%
Total
Middle East & Africa
CIS
North & Central America
Asia-Pacific
Europe
Russia
13030
12
Source: Aeroflot Group
Aeroflot Group Network Adjustments
DestinationAug
20
Sep
20
Oct
20
Nov
20
Nov
19
London 11 14 11 11 32
Belgrade - - 2 2 21
Geneva 1 1 2 3 14
Istanbul 24 35 35 35 35
Antalya 14 14 28 14 14
Dubai - 2 2 2 21
Cairo - 3 3 3 7
Male - 2 2 4 5
Minsk - - 2 3 42
Bishkek - 1 5 7 14
Osh - - 4 6 7
Nur-Sultan - 1 1 1 12
Tokyo - - - 1 7
Seoul - - 1 1 7
Gradual reopening of international network Turkey market recovered 3 weeks after reopening
Aeroflot Airline, number of one-way weekly flights
Flights to select points in USA, EU, Asia (multiple destinations)
for certain categories of passengers (passenger/cargo flights).
+
64.1
89.5
Sep'19 Sep'20
While others operate in line with deployed capacity
Istanbul
+23%
Antalya
+9%
Bodrum
Dalaman
(new)
39.6%
0.0 10.0 20.0 30.0 40.0 50.0
Cairo
Male
Dubai
Geneva
London
Sep'2020 Sep'2019
Indicator of relative ASK vs
PAX performance
Gradual reopening of international network indicates existing and delayed demand for international travel (based on load factors and yields performance) with Turkey market posting extraordinary performance in Q3.
Aeroflot Airline, thousand PAX
13
3.18 3.24 3.21
2.51
2.842.63
Domestic International Total
3.76
4.073.93
3.41
4.13
3.66
Domestic International Total
RUB RUB
3.2%0.7% 1.1%Q3 Scheduled Yield (PAX Revenue / RPK) Q3 Scheduled RASK (PAX Revenue / ASK)
RUB / RPK RUB / ASK
% Y-o-Y increase 2019 2020 % Y-o-Y increase 2019 2020
(20.9)% (18.1)%(12.2)%(9.2)%
(7.0)%
1.4%
RUB RUB
3.2%0.7% 1.1%9M Scheduled Yield (PAX Revenue / RPK) 9M Scheduled RASK (PAX Revenue / ASK)
RUB / RPK RUB / ASK
Source: Aeroflot GroupNote: Data presented based on management accounts, scheduled flights revenue is used for calculations
Aeroflot Group Scheduled Flights Revenue Units
Negative though improving through the quarter yield dynamics in domestic segment due to extra capacity in the market
and positive trends in international due to currency factor and extreme limitations on flights.
4.02 4.29 4.17
3.35
7.21
3.60
Domestic International Total
(16.8)%(13.7)%
68.0%
3.65 3.65 3.65
2.75
4.94
2.92
Domestic International Total
(24.5)% (19.9)%
35.5%
14
1. Market Update and Operating Results
2. Network and Schedule Overview
3. Fleet Overview
4. Financial Performance
5. Appendix 1: Strategy 2028
6. Appendix 2
15
Aeroflot Group continues to control capacity expansion and negotiate with lessors amid demand shock caused by COVID-19.
Type of
aircraft
9M 2020 Fleet as at
30.09.2020Delivery Phase out
Wide-body (long-haul) 1 (4) 56
A-330 - (4) 17
A-350 1 - 1
B-777 - - 29
B-747 - - 9
Narrow-body (medium-haul) - (3) 235
A-319 - - 30
A-320 - (3) 79
A-321 - - 33
B-737 - - 93
Narrow-body (regional) 6 (2) 66
SSJ-100 5 - 54
DHC-8 1 (2) 9
DHC-6 - - 3
TOTAL 7 (9) 357
Fleet Update
Actual and expected additions 2020 Fleet Plans
Further deliveries as well as
phase-outs are being
discussed with lessors
Part of the fleet is currently
temporarily grounded with
continuous rotation
In 9M 2020 Aeroflot Group
operated 357 aircraft vs 364
aircraft in 9M 2019
16
1. Market Update and Operating Results
2. Network and Schedule Overview
3. Fleet Overview
4. Financial Performance
5. Appendix 1: Strategy 2028
6. Appendix 2
17
Q3 2019 Q3 2020 Change Million RUB (where applicable) 9M 2019 9M 2020 Change
18,533 10,129 (45.3)% Passenger Traffic (mln PAX) 46,728 23,056 (50.7)%
212,543 84,861 (60.1)% Revenue 523,983 234,213 (55.3)%
190,323 73,984 (61.1)% PAX Traffic Revenue 462,034 193,575 (58.1)%
165,466 95,497 (42.3)% Operating Costs 462,288 290,968 (37.1)%
47,077 (10,636) n/a Operating Income/(Loss) 61,695 (56,755) n/a
73,379 20,088 (72.6)% EBITDA 141,675 31,180 (78.0)%
34.5% 23.7% (10.8) p.p. EBITDA Margin 27.0% 13.3% (13.7) p.p.
29,089 (21,136) n/a Net Income/(Loss) 20,305 (79,406) n/a
Financial Highlights: Q3 and 9M 2020
Financial results of 9M 2020 are impacted by weaker demand due to COVID-19, with Q3 financials showing significant improvement over Q2, following lifting of restrictions within Russia and gradual reopening of international segment.
18
523,983 (251,826)
(16,633)3,520 (24,831)
234,213
9M 2019 ScheduledPassenger
Flights
CharterPassenger
Flights
Cargo OtherRevenue
9M 2020
Revenue Dynamics Decomposition
Revenue by Key Factors Revenue by Business Segments
Million RUB Million RUB
Primary driver of revenue decline was scheduled passenger flights segment showing significant declines in every geographical segment.
523,983 (244,903)
1,036 (21,135)(24,768)
234,213
9M 2019 Volume Currency Pricing Other 9M 2020
19
Operating Costs
Q3 2019 Q3 2020Change
y-o-y
Change
ex. FX
Operating Expense
(RUB mln if not stated otherwise)9M 2019 9M 2020
Change
y-o-y
Change
ex. FX
% of OpEx
(9M 2020)
52,861 18,077 (65.8)% (66.8)% Fuel 145,569 62,006 (57.4)% (58.0)% 21.3%
112,605 77,420 (31.2)% (36.1)% Opex (ex. Fuel) 316,719 228,962 (27.7)% (29.9)% 78.7%
35,728 15,903 (55.5)% (58.5)% Aircraft and passenger servicing 96,893 48,840 (49.6)% (51.2)% 16.8%
26,302 30,724 16.8% 9.2% D&A and customs duties 79,980 87,935 9.9% 7.4% 30.2%
22,065 15,734 (28.7)% (29.2)% Staff 66,859 50,354 (24.7)% (25.1)% 17.3%
8,278 4,676 (43.5)% (45.1)% SG&A1 22,481 15,155 (32.6)% (33.7)% 5.2%
9,955 6,778 (31.9)% (49.9)% Maintenance 23,942 20,247 (15.4)% (24.7)% 7.0%
4,339 2,215 (48.9)% (54.2)% Communication Expenses 13,483 6,647 (50.7)% (53.9)% 2.3%
5,938 1,390 (76.6)% (78.4)% Other expenses2 13,081 (216) n/a n/a (0.1)%
165,466 95,497 (42.3)% (45.9)% Total Opex 462,288 290,968 (37.1)% (38.8)% 100.0%
1 Includes sales and marketing expenses and administration and general expenses.2 Other expenses include short-term and immaterial lease, reserves accrual and reversal, catering, other income and 7.9 bn RUB government subsidy for lost traffic (Q2 2020).
Operating Expenses Breakdown
In 9M 2020 operating costs were significantly impacted by smaller volume of operations and supported by optimization initiatives.
20
3.18
(0.15) 0.00
0.65
0.23 0.05 0.11 (0.00) (0.09)
3.97
(0.11)
3.86
3.18
CASK 9M 2019 Fuel Aircraft andPassengerServicing
D&A and CD* Staff SG&A Maintenance CommunicationExpenses
Other Expenses CASK 9M 2020 FX CASK 9M 2020ex. FX
CASK 9M 2019
Cost per ASK increased by 24.9% from RUB 3.18 in 9M 2019 to RUB 3.97 in 9M 2020 on the back of significant decrease in capacity and fixed costs allocated over reduced ASKs.
Group Unit Costs
21.5%(2.7)%24.9%
Capacity: ASK adjustmentUnit Costs Dynamics
Operating Expense per ASK (CASK), RUB 9M 2019 9M 2020 Change
Fuel 1.00 0.85 (15.5)%
CASK (ex. Fuel): 2.18 3.13 43.5%
Aircraft and Passenger Servicing 0.67 0.67 0.0%
D&A and Customs Duties 0.55 1.20 118.2%
Staff 0.46 0.69 49.5%
SG&A 0.15 0.21 33.8%
Maintenance 0.16 0.28 67.8%
Communication expenses 0.09 0.09 (2.2)%
Other Expenses 0.09 0.00 n/a
Total CASK 3.18 3.97 24.9%
CASK Bridge
(49.6)%
Billion ASK
RUB / ASK
145.4
73.3
9M 2019 9M 2020
21
On the back of oil price weakness staring from March 2020 jet fuel prices moved towards more comfortable levels, which is supportive for the industry in the current environment.
Fuel Efficiency
(gramme / ASK)Thousand RUB per tonne of jet fuel
1
Source: Aeroflot Group1 Weighted average price for 9M (2019 and 2020) and 12M (2015-2017).
2.5%
Fuel Cost Management
31.1
33.5
2015-2017 FY weighted averages
Average fuel price per tonne
Aeroflot Airline:
• 9M 2020: 36.2 thd RUB (-17.5% yoy).
• Q3 2020: 29.8 thd RUB (-31.3% yoy).
• Sep 2020: 30.7 thd RUB (-29.1% yoy).
Aeroflot Airline Jet Fuel Price
22.3 22.9
9M 2019 9M 202036.2
43.9
30
40
50
45
35
20
25
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 9M(WA)
2020 2019
22
Pobeda Financial Results
PAX Traffic and Other Operating Metrics
RASK1
CASK
Pobeda Statement of Profit and Loss (IFRS, standalone)
Q3 2019 Q3 2020 Change Million RUB 9M 2019 9M 2020 Change
19,320 15,846 (18.0)% Revenue 40,779 28,487 (30.1)%
11,920 10,480 (12.1)% Operating Expenses 32,484 24,663 (24.1)%
7,400 5,367 (27.5)%Operating Income /
(Loss)8,295 3,824 (53.9)%
38.3% 33.9% (4.4) p.p. Operating margin 20.3% 13.4% (6.9) p.p.
4,222 3,650 (13.5)%Adjusted Net
Income / (Loss)2 7,423 1,220 (83.6)%
9,483 7,632 (19.5)% EBITDA 14,173 10,383 (26.7)%
49.1% 48.2% (0.9) p.p. EBITDA margin 34.8% 36.4% 1.6 p.p.
Note: based on managerial accounts transformed under IFRS principles. Includes 12 aircraftsubleased from Aeroflot; provisions for heavy maintenance of 5 aircraft included in 2020 periods; 4 aircraft transferred to Pobeda from another company of the Group in Q3 2020 are temporarily accounted as short-term operating lease.1 Calculation based on Total Revenue of the Company2 Adjusted for (excluding) net FX loss from lease liabilities revaluation in the amount of 14.7 bn RUB
in 9M 2020 (3.8 bn RUB net FX gain in 9M 2019) and net FX loss of 7.9 bn RUB in Q3 2020 (1.2 bn RUB net FX loss in Q3 2019) in 2019 and 2020 periods and the associated deferred tax in 2020 periods; FX gain/loss eliminated in consolidated financials due to hedging of FX-denominated liabilities with FX-denominated revenues (non-cash income).
2.802.42
9M 2019 9M 2020
7.66.3
9M 2019 9M 2020
2.23 2.09
9M 2019 9M 2020
Million PAX, dynamics y-o-y
RUB / ASK, dynamics y-o-y
RUB / ASK, dynamics y-o-y
In 9M 2020 Pobeda’s result was affected by softening demand and suspension of operations for April and May.Q3 showed a sizable recovery in operating indicators vs. Q2 which supported financial results of the period.
3.0 3.4
Q3 2019 Q3 2020
(16.7)%
12.1%
3.392.63
Q3 2019 Q3 2020
(13.7)%(22.6)%
2.091.74
Q3 2019 Q3 2020
(6.2)% (17.0)%
23
Liquidity
Leverage and Liquidity
Million RUB 31-Dec-2019 30-Sep-2020 Change
Borrowings 15,792 65,767 4.2x
Lease Liabilities 557,124 713,995 28.2%
Pension Liabilities 784 791 0.9%
Total Debt 573,700 780,553 36.1%
Cash and Short-Term
Investments25,861 43,088 66.6%
Net Debt 547,839 737,465 34.6%
1 30-Sep-2020 exchange rate – 79.68 RUB per USD, 31-Dec-2019 exchange rate – 61.91 RUB per USD.
Debt Profile1
Billion RUB
Amid significant pressure on revenue, management team focused its efforts on raising and accumulating liquidity.Cash position of RUB 43 billion and undrawn credit lines of RUB 148 billion.
37.4 48.7 43.1
81.3108.4
148.0
118.7
157.1
191.1
31-Mar-20 30-Jun-20 30-Sep-20
Cash and ST investments Available credit lines
Net Debt / EBITDA
3.24.4
5.8
12.6
31-Dec-2019 31-Mar-2020 30-Jun-2020 30-Sep-2020
24
Optimizations with Liquidity in Focus
Reduced monthly costs Improved Operating Cash Flow Steps to improve liquidity
Billion RUB
59.3
35.9
Monthly costs inQ3'19
Monthly costs inQ3'20
Billion RUB, monthly average, includes
OPEX and net finance costs 80bn RUB
SPO proceeds
October 2020
~148 bn RUB
Available credit lines,
including facilities
backed by
state guarantees
1 Cash outflows, including cash costs, interest on lease payments (accounted as interest expense in PL) and indirect taxes (including VAT, etc.). Based on managerial accounts.
Down 40%
Improved operating cash flows in Q3 vs Q2 and reduced monthly costs of Q3 2020 supported recovery in financials.Additional liquidity raised in Q4 as well as available credit lines will facilitate further navigation through COVID-environment.
Quarterly lease payments: Q2 and Q3 trends
34.5
8.1
Q2'19 Q2'20
30.9
15.3
Q3'19 Q3'20
5.2
14.3
Q2'20 Q3'20
Up 2.7x
(26.4) bn RUB (15.6) bn RUB
~ 57 bn RUB
Accumulated PDPs to be
refunded in 2021-2023
as additional support for
liquidity
(excluding extra PDPs to
be made in 2021)
25
1. Market Update and Operating Results
2. Network and Schedule Overview
3. Fleet Overview
4. Financial Performance
5. Appendix 1: Strategy 2028
6. Appendix 2
26
Aeroflot Group: Now and Then
Key Strategic Goals
Key Goals of the Updated Strategy
Increase of
Aeroflot
Group’s PAX
Accelerated
development
of Pobeda Airline to
improve air travel
affordability and
stimulate demand
Stronger
position of
Aeroflot Airline
in the premium
segment due to
the Group’s
transformation
130PAX
37 35-40
10 55-65
12 20-30
2019 2028
• Optimization of the network according to routes’ yield
• Best-in-class premium quality service
• Supporting high population mobility
• Stimulating demand through more affordable ticket prices
• Operating modern Russian-manufactured aircraft
• Socially important routes, inter-regional network
Premium carrierwith international recognition, developing transit
Low-cost carrier, one of the largest and one of the most cost efficient in the world1
Regional carrier,
routes bypassing Moscow, social function and regional connectivity
PAX (mn)
m
1 Based on CASK ex.-fuel benchmarking, calculated based on airlines’ data.
Aeroflot Group updated its long term targets: the Group intends to streamline its value proposition, increase focus on LCC and further improve Aeroflot Airline’s product.
27
The Group’s Target Network and Fleet Allocation
Medium-haul flights Long-haul flights
High-yield flights from Moscow
Destinations with high demand
Routes bypassing Moscow + social fares
Selected domestic routes
Key premium international routes
Domestic and international routes
New regional bases
International and domestic routes fromSt. Petersburg
Leisure destinations
Feeder traffic to Aeroflot in Moscow
Affordable domestic flights
All destinations
by 2028
~600 aircraft
Russian-manufactured aircraft
Network Fleet Network Fleet
Transfer of medium-haul aircraft to Pobeda and Rossiya and Aeroflot’s focus on long-haul aircraft will allow to strengthen specialization of the airlines, improve commonality of the fleet and value proposition.
28
Global carrier with a 5-star Skytrax product
Focus on targetmarket segments
Optimized cost structure
• Skytrax 5* product
• Europe – Asia transit
• Key premium international destinations
• High-yield domestic flights
• Only markets with premium product demand
• High load factor and yield of business andeconomy class through withdrawal from low yield
markets
• Fleet of several aircraft types
• Highly efficient aircraft of new generation
• Wide-body aircraft on most destinations
Aeroflot in 2028
Aeroflot Airline’s fleet development strategy
Long-haul flights Medium-haul flights
Aeroflot Airline: 2028 Vision
Destinations with low premium product demand will be served by other carriers of the Group
Growing market with
premium product demand
Launch of new routes
Transfer of low-yield destinations to Pobeda
Focus on destinations with high demand for
business class (e.g. London, Geneva, Zurich)
and long-haul flights (e.g. Lisbon, Madrid)
2028
Decrease in aircraft types by transferring of Russian-
manufactured aircraft to Rossiya and B737-800 to Pobeda
Development of narrow-body aircraft fleet by adding
modern aircraft with higher capacity
Further wide-body aircraft fleet development
By 2028, Aeroflot Airline’s fleet will consist of only several aircraft types resulting in significant efficiency improvement
The network development (Sheremetyevo Airport)
By 2028 Aeroflot will increase efficiency and further enhance its premium level of service via streamlining its value proposition
29
Pobeda in 2028
Pobeda’s fleet development strategyPobeda has become one of the most efficient low-cost carriers within only 5 years
Pobeda Airline: 2028 Vision
Pobeda is the most efficient low-cost carrier in the world based on selected performance indicators
Using modern aircraft with higher capacity will allow Pobeda to further decrease operating costs
Notes: (1) Flights in 3Q 2019, according to Boeing; (2) Operating profit margin in 2019, according to Skift; (3) Calculated based on airlines’ public data as of 2019; (4) In 2019, among non-charter carriers on the Russian market, based on public statistics
16.1 hours Global leader by aircraft utilization(1)
19 % Top-3 among global airlines by profitability(2)
25 min The fastest aircraft turnaround in Russia
6 700PAX per employee
The best productivity on the Russian market(3)
94 % The highest load factor(4)
Transfer of Boeing 737-800from the Group’s airlines to Pobeda
Further fleet development by using modern aircraft with higher capacity
Balanced growth of fleet size
1
2
3
c.30% market share in Russiawith further growth potential
More capacious aircraft of new generations will increase efficiency and decrease costs
Average ticket prices reduction by 30% on the domestic market for economy class
(not adjusted for inflation)
Affordable air travelEfficient fleetHigh market share
By 2028, Pobeda will significantly increase in size and ensure travel affordability for the Russian population via stimulating traffic and volumes backed by its operational and financial efficiency
30
The largest carrier in Russia on routes
bypassing Moscow and Saint Petersburg
Leading operator of
Russian-manufactured aircraft
Fulfilling Aeroflot Group’s
social mission
Servicing inter-regional flights
from new regional bases
Creating of a system of linear stations and hangar
facilities for servicing Russian-manufactured aircraft
(also in regions)
Servicing socially significant routes
Rossiya in 2028
The key goals of Rossiya Airline strategy
Rossiya Airline: 2028 Vision
Fulfilling social functions of the Group
Establishing a center of competence for Russian-manufactured aircraft development
Network development bypassing Moscow
Feeder traffic for Aeroflot’s flights to Moscow
Rossiya will focus on the efficient development of flights bypassing Moscow as well as fulfilling the Group's social mission.
31
1. Market Update and Operating Results
2. Network and Schedule Overview
3. Fleet Overview
4. Financial Performance
5. Appendix 1: Strategy 2028
6. Appendix 2
32
Operating Data – Q3 & 9M 2020
UnitQ3
2019
Q3
2020Y-o-Y
9M
2019
9M
2020Y-o-Y
Q3
2019
Q3
2020Y-o-Y
9M
2019
9M
2020Y-o-Y
Passenger Traffic th PAX 10,638 3,813 (64.2%) 28,433 11,621 (59.1%) 18,533 10,129 (45.3%) 46,728 23,056 (50.7%)
International Routes th PAX 5,589 348 (93.8%) 14,907 3,827 (74.3%) 8,275 619 (92.5%) 20,957 5,185 (75.3%)
Domestic Routes th PAX 5,049 3,465 (31.4%) 13,526 7,793 (42.4%) 10,258 9,510 (7.3%) 25,771 17,871 (30.7%)
Passenger Turnover mn pkm 28,803 7,828 (72.8%) 77,622 28,962 (62.7%) 47,343 21,015 (55.6%) 120,268 53,731 (55.3%)
International Routes mn pkm 19,428 1,061 (94.5%) 52,823 13,922 (73.6%) 26,678 1,786 (93.3%) 70,209 18,630 (73.5%)
Domestic Routes mn pkm 9,375 6,766 (27.8%) 24,799 15,040 (39.4%) 20,665 19,229 (6.9%) 50,058 35,101 (29.9%)
Passenger Capacity mn ASK 33,567 10,326 (69.2%) 96,755 43,308 (55.2%) 53,497 25,324 (52.7%) 145,380 73,262 (49.6%)
International Routes mn ASK 23,028 1,590 (93.1%) 66,753 20,752 (68.9%) 30,762 2,400 (92.2%) 86,333 26,338 (69.5%)
Domestic Routes mn ASK 10,539 8,735 (17.1%) 30,002 22,556 (24.8%) 22,735 22,924 0.8% 59,047 46,925 (20.5%)
Passenger Load Factor % 85.8% 75.8% (10.0) p.p. 80.2% 66.9% (13.4) p.p. 88.5% 83.0% (5.5) p.p. 82.7% 73.3% (9.4) p.p.
International Routes % 84.4% 66.8% (17.6) p.p. 79.1% 67.1% (12.0 p.p.) 86.7% 74.4% (12.3) p.p. 81.3% 70.7% (10.6) p.p.
Domestic Routes % 89.0% 77.5% (11.5) p.p. 82.7% 66.7% (16.0 p.p.) 90.9% 83.9% (7.0) p.p. 84.8% 74.8% (10.0) p.p.
Tonne-Kilometres mn tkm 2,849 853 (70.1%) 7,698 3,144 (59.2%) 4,613 2,129 (53.8%) 11,767 5,563 (52.7%)
International Routes mn tkm 1,935 163 (91.6%) 5,278 1,568 (70.3%) 2,607 231 (91.1%) 6,898 2,020 (70.7%)
Domestic Routes mn tkm 914 690 (24.5%) 2,420 1,575 (34.9%) 2,007 1,898 (5.4%) 4,869 3,543 (27.2%)
Revenue Flights flights 76,424 32,615 (57.3%) 218,987 112,690 (48.5%) 122,140 70,900 (42.0%) 337,423 191,834 (43.1%)
International Routes flights 37,106 2,527 (93.2%) 107,210 33,381 (68.9%) 50,639 3,576 (92.9%) 141,691 41,683 (70.6%)
Domestic Routes flights 39,318 30,088 (23.5%) 111,777 79,309 (29.0%) 71,501 67,324 (5.8%) 195,732 150,151 (23.3%)
Flight Hours hours 216,015 75,506 (65.0%) 626,178 299,202 (52.2%) 333,413 167,993 (49.6%) 927,336 493,208 (46.8%)
Aeroflot Airline Aeroflot GroupIndicators
33
Operating Data of Subsidiary Airlines – Q3 & 9M 2020
Indicators Pobeda AuroraRossiya
Q3
2020Y-o-Y
9M
2020Y-o-Y
Q3
2020Y-o-Y
9M
2020Y-o-Y
Q3
2020Y-o-Y
9M
2020Y-o-Y
Passenger Traffic th PAX 2,685 (38.2%) 4,512 (52.2%) 3,378 12.1% 6,312 (16.7%) 252 (53.1%) 611 (52.2%)
International Routes th PAX 191 (90.1%) 761 (80.8%) 78 (87.0%) 526 (69.8%) 1 (99.4%) 72 (79.0%)
Domestic Routes th PAX 2,494 3.8% 3,751 (31.4%) 3,300 37.0% 5,786 (0.9%) 251 (36.9%) 540 (42.5%)
Passenger Turnover mn pkm 7,096 (42.1%) 13,002 (52.0%) 5,740 4.5% 10,924 (20.2%) 351 (56.1%) 843 (54.6%)
International Routes mn pkm 531 (90.6%) 3,409 (73.8%) 192 (86.5%) 1,191 (69.4%) 1 (99.5%) 109 (77.3%)
Domestic Routes mn pkm 6,565 (0.9%) 9,594 (31.9%) 5,548 36.3% 9,734 (0.6%) 350 (41.6%) 734 (46.6%)
Passenger Capacity mn ASK 8,370 (36.9%) 16,563 (47.4%) 6,028 5.9% 11,780 (19.0%) 600 (38.1%) 1,611 (37.4%)
International Routes mn ASK 598 (90.0%) 4,023 (72.4%) 208 (86.1%) 1,349 (68.5%) 4 (98.3%) 215 (69.8%)
Domestic Routes mn ASK 7,772 6.7% 12,540 (25.8%) 5,820 38.7% 10,431 1.5% 596 (16.2%) 1,397 (25.0%)
Passenger Load Factor % 84.8% (7.5) p.p. 78.5% (7.5) p.p. 95.2% (1.3) p.p. 92.7% (1.4) p.p. 58.5% (24.0) p.p. 52.3% (19.8) p.p.
International Routes % 88.8% (5.2) p.p. 84.7% (4.4) p.p. 92.7% (2.7) p.p. 88.3% (2.8) p.p. 23.9% (53.5) p.p. 50.9% (16.8) p.p.
Domestic Routes % 84.5% (6.4) p.p. 76.5% (6.8) p.p. 95.3% (1.6) p.p. 93.3% (2.0) p.p. 58.7% (25.6) p.p. 52.5% (21.3) p.p.
Flight Hours hours 42,426 (34.5%) 88,696 (45.9%) 41,810 5.5% 82,603 (19.4%) 8,251 (36.5%) 22,607 (35.2%)
34
Source: Aeroflot Group
Passenger and Cargo Operating Numbers
ASK
PLF
Total Domestic Cargo
15.0 13.812.1
1.6 1.63.9
7.69.2 8.5
7.1
2%
4%
(20)%
(90)%
(90)%
(78)%
(58)%
(49)%
(50)%
(56)%
Jan Feb Mar Apr May Jun Jul AugSep Oct
ASK, bn %, y-o-y
6.0 5.5 6.0
1.5 1.53.7
7.4 8.3 7.35.8
6%
6%
5%
(76)%
(78)%
(50)%
(5)%
6%
1%
(8)%
Jan Feb Mar Apr May Jun Jul AugSep Oct
ASK, bn %, y-o-y
75%74%63%
35%45%
61%79%
86%84%78%
(1) (3) (18) (45) (32) (23)(11) (4) (2) (5)
Jan Feb Mar Apr May Jun Jul AugSep Oct
PLF y-o-y change (p.p.)
73%76%65%
34%44%
62%80%
88%84%78%
(3) (2) (16)
(47) (36)(25) (14)
(5) (3) (7)
Jan Feb Mar Apr May Jun Jul AugSep Oct
PLF y-o-y change (p.p.)
deployed for cargo transportation
Wide-body
aircraft
vs. PAX transportation
Cargo more
resilient
23.425.4
23.7
8.7
11.9 12.9
17.820.5
21.823.7
Jan Feb Mar Apr May Jun Jul AugSep Oct
thousand tons of cargo and mail
Gradual addition of capacity in domestic segment was aligned with higher demand for flights starting from June.
Aeroflot deployed wide-body passenger aircraft for cargo transportation in order to support financial results.
35
14.08.4
25.3
18.018.2
13.6
9M 2019 9M 2020
7.7 mln65.3%
0.9 mln8.2%
1.1 mln9.2%
2.0 mln17.3%
Point-to-pointInternational - InternationalInternational - Domestic / Domestic - InternationalDomestic - Domestic
4.1
0.9
0.2
0.1
4.3
1.0
9M 2019 9M 2020
Aeroflot Domestic and International Transit
… Results into a Flexible Approach to Transit Flows
Increase in International – International Traffic2
Growing Connectivity of Aeroflot Airline’s Flights1 ...
Source: Aeroflot Group.1 Data for Aeroflot airline’s own flights.2 From 2018 total international-international transit figures include Rossiya airline passenger traffic of the segment.
… Backed by expansion of international network …
4.44.8
5.3
0.03
0.2
4.44.8
5.5
2017 2018 2019Aeroflot Rossiya
Total int. – int. transit traffic, million PAX (Aeroflot and Rossiya flights)
(75.8)%
6 from winter ‘18/19 2 from summer ‘19
BukharaUzbekistan
DenpasarIndonesia
DublinIreland
LjubljanaSlovenia
OshKyrgyzstan
ColomboSri Lanka
MarseilleFrance
PalmaSpain
Share of international-international transit in total traffic of Aeroflot Group2
8.8% 8.7% 9.0% 9.1% 4.5%
21.8x 20.7x
Transit traffic segment experienced significant pressure from COVID-related decrease in demand in 9М 2020.
13.1 13.9 14.1
24.225.5 25.3
17.018.0 18.2
21.2x 22.0x 23.6x
2017 2018 2019
International Domestic Combined Connectivity ratio
36
Source: Data presented based on management accounts for scheduled flights of Aeroflot Group (excluding charter flights)
9M 2020 Operating Data by Region (Scheduled Routes)
Americas Russia CIS
Europe Middle East Asia
Group operations in all regions of the world experienced significant pressure from COVID-related decline in demand.
(74.2)% (74.2)% (69.2)%
(13.6) p.p.
Passengerscarried
RPK ASK PLF
(33.4)% (33.3)%(23.5)%
(10.9) p.p.
Passengerscarried
RPK ASK PLF(77.0)% (76.2)% (71.5)%
(13.7) p.p.
Passengerscarried
RPK ASK PLF
(76.9)% (77.5)% (73.1)%
(12.7) p.p.
Passengerscarried
RPK ASK PLF
(62.9)% (64.2)% (58.8)%
(10.4) p.p.
Passengerscarried
RPK ASK PLF (69.5)% (68.0)% (64.5)%
(7.8) p.p.
Passengerscarried
RPK ASK PLF
37
Well-balanced fleet structure in line with Group’s strategy
Aircraft TypeOperated by Total as of Total as of Change vs.
Aeroflot Subsidiaries 30-Sep-20 31-Dec-19 31-Dec-19
Wide-body 37 19 56 59 (3)
Airbus A330 17 - 17 21 (4)
Airbus A350 1 - 1 - 1
Boeing 777 19 10 29 29 -
Boeing 747 - 9 9 9 -
Narrow-body (medium-haul) 153 82 235 238 (3)
Airbus A319- 30 30 30 -
Airbus A32073 6 79 82 (3)
Airbus A32133 - 33 33 -
Boeing 73747 46 93 93 -
Narrow-body (regional) 54 12 66 62 4
DHC 8 - 9 9 10 (1)
DHC 6 - 3 3 3 -
SSJ 10054 - 54 49 5
Total fleet 244 113 357 359 (2)
Aeroflot Group Fleet Breakdown
Aeroflot Group Fleet Overview Breakdown by Aircraft
Breakdown by Company
Narrow-body
(medium-haul)66%
Narrow-body
(regional) 18%
Wide-body16%
Aeroflot68%
Rossiya16%
Aurora6%
Pobeda10%
38
In 9M 2020 revenue from scheduled passengers decreased by 58% on the back of softer demand in all regions of operations due to COVID-19.
Traffic Revenue Analysis – Q3 and 9M 2020
Q3 2019 Q32020 Y-o-Y Region9M
2019
9M
2020Y-o-Y
9M 2020
% of sch.
revenue
79,918 56,476 (29.3)% Russia 182,340 110,432 (39.4)% 61.6%
45,907 2,113 (95.4)% Europe 114,149 27,112 (76.2)% 15.1%
21,941 844 (96.2)% Asia 65,567 21,061 (67.9)% 11.7%
7,777 590 (92.4)% CIS 20,658 4,850 (76.5)% 2.7%
9,659 657 (93.2)%North and Central
America23,198 5,944 (74.4)% 3.3%
11,258 4,172 (62.9)%Middle East and
Africa25,269 9,956 (60.6)% 5.6%
176,460 64,852 (63.2)% Total 431,181 179,355 (58.4)% 100.0%
1 Data presented based on management accounts2 Data presented based on management accounts for Aeroflot airline and routes of subsidiary airlines under commercial management of Aeroflot
Q3 2019 Q32020 Y-o-Y Segment9M
2019
9M
2020Y-o-Y
9M 2020
% of revenue
82,463 63,514 (23.0)% Domestic 187,985 119,140 (36.6)% 61.5%
107,860 10,470 (90.3)% International 274,049 74,435 (72.8)% 38.5%
190,323 73,984 (61.1)% Total 462,034 193,575 (58.1)% 100.0%
Traffic Revenue Breakdown by Type
Scheduled Traffic Revenue by POS2
Revenue from Scheduled Passengers (RUB mln)1
Total Passenger Revenue (Scheduled + Charter, RUB mln)
Sheduled Passenger Flights 85.1%
Charter Passenger Flights 6.8%
Cargo 8.1%
Sales abroad15.2%
Online39.8%
Call center and own branches4.7%
Sales in Russia40.3%
39
3.18 3.17 3.18
2.54
2.832.64
Domestic International Total
3.763.90 3.84
3.39
4.00
3.60
Domestic International Total
RUB RUB
3.2%0.7% 1.1%Q3 Yield (Scheduled + Charter PAX Revenue / RPK) Q3 RASK (Scheduled + Charter PAX Revenue / ASK)
RUB / RPK RUB / ASK
% Y-o-Y increase 2019 2020 % Y-o-Y increase 2019 2020
RUB RUB
3.2%0.7% 1.1%9M Yield (Scheduled + Charter PAX Revenue / RPK) 9M RASK (Scheduled + Charter PAX Revenue / ASK)
RUB / RPK RUB / ASK
Source: Aeroflot GroupNote: Data presented based on management accounts, scheduled and charted passenger flights revenue is used for calculations
Aeroflot Group Blended Flights Revenue Units
Negative though improving through the quarter yield dynamics in domestic segment due to extra capacity in the market
and positive trends in international due to currency factor and extreme limitations on flights.
(9.6)%(6.2)%
2.4%(20.2)% (16.9)%(11.0)%
3.99 4.04 4.02
3.30
5.86
3.52
Domestic International Total
3.63 3.51 3.56
2.77
4.36
2.92
Domestic International Total
(17.2)% (12.4)%
45.0%
(23.6)% (17.9)%
24.4%
40
3.994.12 4.07
3.80
4.203.96
Domestic International Total
3.28 3.25 3.26
2.562.85
2.68
Domestic International Total
RUB RUB
3.2%0.7% 1.1%Q3 Scheduled Yield ex. Pobeda (PAX Revenue / RPK) Q3 Scheduled RASK ex. Pobeda (PAX Revenue / ASK)
RUB / RPK RUB / ASK
% Y-o-Y increase 2019 2020 % Y-o-Y increase 2019 2020
RUB RUB
3.2%0.7% 1.1%9M Scheduled Yield ex. Pobeda (PAX Revenue / RPK) 9M Scheduled RASK ex. Pobeda (PAX Revenue / ASK)
RUB / RPK RUB / ASK
Source: Aeroflot GroupNote: Data presented based on management accounts, scheduled flights revenue is used for calculations
Aeroflot Group Scheduled Flights Revenue Units
ex. Pobeda
Negative though improving through the quarter yield dynamics in domestic segment due to extra capacity in the market
and positive trends in international due to currency factor and extreme limitations on flights.
(4.9)%(2.7)%
1.9%(21.9)% (17.9)%(12.5)%
4.15 4.33 4.253.66
7.83
3.99
Domestic International Total
3.70 3.65 3.67
2.83
5.10
3.04
Domestic International Total
(11.7)% (6.1)%
80.9%
(23.6)% (17.3)%
39.7%
41
Key driver of EBITDA adjustment was a decrease in size and scale of operations on the back of COVID-related pressure on demand as well as negative FX influence.
141,675
(244,903)
(21,135)
(24,768)
1,036 (5,841)
84,409 16,773
49,622 7,270 5,913 7,574
13,555
31,180
EBITDA 9M
2019
Volume Pricing Other FX benefit on
revenue
FX drag on
costs
Fuel* Staff* Aircraft and
PAX*
Comm.
Expenses*
Maintenance* Admin & Sales &
Marketing*
Other OPEX* EBITDA 9M
2020
EBITDA Evolution
* Excluding currency impact
Total effect on revenue
∑=(289,770) RUB mlnTotal effect on costs
∑=179,275 RUB mln
Net volume and price effect
∑=(290,806) RUB mln
Net FX effect
∑=(4,805) RUB mlnNet volume and price effect
∑=185,116 RUB mln
42
Operating and Free Cash Flow remained under pressure in 9M 2020 due to demand pressure and adjustment of operating program.
Operating and Free Cash Flows
87,936
(100,710)
87,525
33,534 2,077 4,285
26,711
6,589
33,300
(12,078)
(597) (5,168)1,834
17,291
Loss BeforeIncome Tax
D&A InterestExpense
Unrealized NetFX Gain
Other Adj.Before
WorkingCapital
Changes
Cash FlowsFrom
OperatingActivitiesBefore
WorkingCapital
Changes
WorkingCapital
Changes andIncome Tax
Net CashFlows FromOperatingActivities
Purchase ofPPE &
CapitalizedExpenses
DepositPlacement and
Return
Net Pre-delivery
Payments forAircraft
Net LeaseDeposits for
a/c and Other
Free CashFlow 9M 2020
Free CashFlow 9M 2019
43
Aeroflot Group’s headcount decreased by 5.9% vs. December 31, 2019.
31-Dec-2019 30-Sep-2020 %
Flight crew 4,596 4,598 0.0 %
Cabin crew 12,822 12,285 (4.2)%
Other airline personnel (incl. airlines’ head office) 16,885 16,188 (4.1)%
Other non-airline subsidiaries’ personnel 6,993 5,809 (16.9)%
Total1 41,296 38,880 (5.9)%
(36.0)%
Million RUB per employee, annualized to 30.09.2020 Passengers per employee, annualized to 30.09.2020
(40.1)%
1 Aeroflot Aviation School headcount is included in Other non-airline subsidiaries’ personnel
Headcount Overview
Aeroflot Group Headcount
Traffic Revenue / Average Airlines’ Headcount PAX Traffic / Average Airlines’ Headcount
Headcount by Category
Flight crew11.8%
Cabin crew31.6%
Other airline personnel
41.6%
Other non-airline personnel
14.9%
17.0
10.2
30.09.2019 (LTM) 30.09.2020 (LTM)
1,692
1,083
30.09.2019 (LTM) 30.09.2020 (LTM)
Personnel and Remuneration
Committee
(3 members)
Audit Committee
(3 members)
Strategy Committee
(8 members)
NameAudit
Committee
Personnel and
Remuneration
Committee
Strategy
Committee
Vitaly Saveliev Chairman
Mikhail Poluboyarinov
Maksut Shadayev
Igor Kamenskoy Member Chairman Chairman
Yaroslav Kuzminov Member Member
Maksim Liksutov
Roman Pakhomov Chairman Member Member
Dmitry Peskov Member
Evgeny Ditrich
Yuri Slyusar Member
Sergey Chemezov
Independent director according to the Russian Corporate Governance Code 44
Board of Directors
Corporate Governance Board of Directors
Executive Board
General Meeting of Shareholders
Board of Directors
Incorporated in Russia, PJSC Aeroflot is subject to
Russian corporate governance regulations and
follows Russian Corporate Governance Code
The Board of Directors is currently composed
of 11 members. The Board’s composition is well
balanced from the members’ background perspective.
PJSC Aeroflot
JSC Rossiya Airlines 75%-1 sh.
LLC Pobeda Airlines 100%
JSC Aurora Airlines 51%
JSC Aeromar
On-board sales/catering51%
LLC Aeroflot-Finance
Financial services100%
JSC Sherotel
Hotel services100%
Aeroflot Aviation School
Education services100%
Note: The Group structure as at 30 September 2020; Aeroflot Group consolidates all entities: PJSC Aeroflot and all subsidiaries.
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).
LLC A-Technics
Maintenance 100%
45
Aeroflot Group Structure
Airlines Ancillary Companies
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.
Address: 119019, Russia, Moscow, Arbat St. 1
E-mail: [email protected]
Website: www.aeroflot.ru
Investor Relations Contacts