A E R O F L O T G R O U P C A P I T A L M A R K E T S D AY 2 0 1 7

Moscow, 21 December 2017

232 235 240

182

196

204

0

112

192

59

100

135

0

176

80

135

157

179

22

44

66

1

40

120

0

128

0

Message text

Chart Colours

255

0

0 Highlight

178

178

178

Table line colour 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

232 235 240

182

196

204

0

112

192

59

100

135

0

176

80

135

157

179

22

44

66

1

40

120

0

128

0

Message text

Chart Colours

255

0

0 Highlight

178

178

178

Table line colour 3

Agenda

Time Content Speakers

9.30 – 10.00 Registration and Coffee

Management Presentations

10.00 – 10.30 Market Update and Strategy Overview Giorgio Callegari (Deputy CEO for Strategy and Alliances)

10.30 – 10.50 Financial Overview Shamil Kurmashov (Deputy CEO for Commerce and Finance)

10.50 – 11.00 Coffee Break

11.00 – 11.20 Rossiya Airline Dmitry Saprykin (CEO of Rossiya Airlines)

11.20 – 11.40 Pobeda Airline Andrey Kalmykov (CEO of Pobeda Airlines)

11.40 – 13.00 Q&A Session

13.00 – 13.30 Lunch

232 235 240

182

196

204

0

112

192

59

100

135

0

176

80

135

157

179

22

44

66

1

40

120

0

128

0

Message text

Chart Colours

255

0

0 Highlight

178

178

178

Table line colour 4

AEROFLOT – INTRODUCTION

GIORGIO CALLEGARI DEPUTY CEO FOR STRATEGY AND ALLIANCES

232 235 240

182

196

204

0

112

192

59

100

135

0

176

80

135

157

179

22

44

66

1

40

120

0

128

0

Message text

Chart Colours

255

0

0 Highlight

178

178

178

Table line colour 5

~130.0 bn

112.1 bn 43.4 mn

PAX

+ 15.0 %

RPK

+ 16.0 %

PASSENGER LOAD

FACTOR

+ 0.5 p.p.

FUEL

COMSUMPTION²

>30.0

- 0.4 % - 0.1 yrs

4.2 yrs 4.1 yrs

FLEET AGE¹

2016 2017Е

gr / ASK gr / ASK

¹ For Aeroflot airline. Average age of Aeroflot Group’s fleet decreased to 6.4 yrs in 2017 from 6.5 yrs in 2016.

² 2017 data for 9 months.

gr / ASK

22.9 22.8

~82.0% 81.5%

• In 2017, Aeroflot has continued improving its performance and operational efficiency.

2017 - Improvements Across the Board

~50.0 mn

232 235 240

182

196

204

0

112

192

59

100

135

0

176

80

135

157

179

22

44

66

1

40

120

0

128

0

Message text

Chart Colours

255

0

0 Highlight

178

178

178

Table line colour 6

Recognized Level of Excellence

Five Star

Global Airline

Strongest Brand in

Russia and Strongest

Airline Brand in the

World 2017

Best Major Airline in Europe,

Best Business Class globally,

Best Airline in Russia 2017

Best Airline

in Eastern Europe

2011, 2013-2017

Four Star Airline

2016

Aeroflot’s achievements are recognised globally by industry and passengers.

Favourite International

Airline in China,

Flyer Award Ceremony 2017

Official carrier

Europe’s Leading Airline Brand,

Europe’s Leading Airline –

Business Class

MARKET AND STRATEGY UPDATE

GIORGIO CALLEGARI

DEPUTY CEO FOR STRATEGY

AND ALLIANCES

232 235 240

182

196

204

0

112

192

59

100

135

0

176

80

135

157

179

22

44

66

1

40

120

8

0

128

0

Message text

Chart Colours

255

0

0 Highlight

178

178

178

Table line colour

• Russian air transportation market has a significant potential to grow in the coming years: CAGR

for the period of 2016-2025 is estimated at 4.2%, which is faster than the pace of global market

expansion.

Russian Market Development

Note: The histogram depicts market of Russia, which excludes International-to-International transit traffic via Russian points and includes only domestic carriage by Russian-based companies and international carriage

by Russian-based and foreign-based carriers.

25.6

41.8

69.3

108.6 103.4

98.9

116.7

140+

2000 2005 2010 2014 2015 2016 2017E 2025F

Pa

sse

ng

er

tra

ffic

, m

illio

n p

ax

CAGR 14/00

10.9%

CAGR 16/14

-4.6%

+18% CAGR 25/16

4.2%

High growth of Russian air transportation market in 2017 is the consequence of:

– Low base effect after significant competitor left the market in October 2015.

– Materialization of deferred demand for tourist carriages amid macroeconomic

stabilization in Russia.

– Competition for market share on the growing market.

Slower growth of Russian aviation

market in 2018-2025 is the function of:

– Suspension of low base effect after

market normalization.

– The need to grow fares in order to

ensure economic efficiency of the

sector.

2000 – 2017 Growth of Russian Market 2018 and Beyond

232 235 240

182

196

204

0

112

192

59

100

135

0

176

80

135

157

179

22

44

66

1

40

120

9

0

128

0

Message text

Chart Colours

255

0

0 Highlight

178

178

178

Table line colour

Source: TCH, FAVT, Russian Railways

54.6%

+4.8 p.p.

45.4%

(4.8) p.p.

Air and Rail Carriage Volumes Dynamics Market1 Shares of Air and Rail

Based on passenger traffic, y-o-y comparison 9M 2017, y-o-y comparison in p.p.

Contribution to Market1 Growth

mln PAX (calculation includes only air transportation

and long-haul rail markets)

158 175

0% 11%

9M 2016 Rail Air Transp. 9M 2017

+11%

4%

10%

8% 6%

1% 1% 1%

(3%)

3%

1% 0%

(3%)

4%

1%

(3%)

0%

(11%) (9%) (9%)

(2%)

3%

13%

18% 18% 18% 19%

24%

29%

23% 23%

19% 19%

Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

Air traffic

Rail traffic

Increase in rail traffic to

Russian holiday resorts

2017 2016

Decreasing demand for

international tourist travel

Recovery of air transportation

(low base effect)

• Active expansion of passenger air transportation at the expense of long-haul rail segment.

• Share of air in total mix of passenger transportation exceeds 60% in September.

Russian Passenger Transportation Market Dynamics

(Air Transportation + Long-haul Rail)

Air transportation grows

faster than long-haul rail

segment from October 2016

1 Market on this slide represents passenger air transportation and long-haul rail markets

232 235 240

182

196

204

0

112

192

59

100

135

0

176

80

135

157

179

22

44

66

1

40

120

10

0

128

0

Message text

Chart Colours

255

0

0 Highlight

178

178

178

Table line colour

37.8%

11.9% 6.2%

6.6%

21.5%

15.9%

Aeroflot Group S7 Group

Utair Group Ural Airlines

Other Russian carriers Foreign carriers

Broad market recovery… …amid changes in Russian market Market Share1

mln PAX mln PAX 9M 2017, %

75.8

92.1

4.5

8.2

3.6

9M 2016 Domestic International Foreigncarriers

9M 2017

75.8

92.1

4.9 0.8

0.5 1.1

5.4

3.6

9M2016

Aeroflot S7Group

UtairGroup

UralAirlines

OtherRussiancarriers

Foreigncarriers

9M2017

• In 9M 2017 passenger air transportation market in Russia shows a clear trend for recovery amid

growth across all market segments and majority of carriers.

1 Market share calculated excluding International-to-International transit traffic via Russian points.

How Does the Russian Market Grow?

Foreign Carriers Other Russian Carriers

232 235 240

182

196

204

0

112

192

59

100

135

0

176

80

135

157

179

22

44

66

1

40

120

0

128

0

Message text

Chart Colours

255

0

0 Highlight

178

178

178

Table line colour 11

Aeroflot Rossiya

Aurora Pobeda

43.4

~50

~741

2016A 2017E 2018 2019 2020 2021 2022F

Russian market International transit traffic

~24 mn

incremental

PAX

+48%

Aeroflot Group Traffic Growth Projected Sources of Growth

CAGR: 9.4%

PAX, mn

Contribution of Growth by Segment

50

74 10

14

2017E International Domestic 2022F

PAX, mn

Identifying Sources of Future Aeroflot Group’s Growth

• Aeroflot airline and Pobeda are expected to be the main drivers of Group’s growth in 2017-2022.

• Aeroflot Group’s market share2 is not expected to exceed 50% by 2022.

1 Including International-to-International transit traffic via Aeroflot airline hub in SVO. 2 Market share calculated excluding International-to-International transit traffic via Russian points.

232 235 240

182

196

204

0

112

192

59

100

135

0

176

80

135

157

179

22

44

66

1

40

120

0

128

0

Message text

Chart Colours

255

0

0 Highlight

178

178

178

Table line colour 12

Expected PAX

in 2022 ~45 mln PAX

~12 mln PAX

~2 mln PAX

~16 mln PAX

Aircraft fleet Narrow-body aircraft

Wide-body aircraft

Narrow-body aircraft Narrow-body aircraft

Target group

Business tourism

Visiting friends and

relatives

Tourism

Visiting friends and

relatives

Tourism

Business tourism

Tourism

Visiting friends and

relatives

Focus airport Moscow:

Sheremetyevo

Vladivoskok

Khabarovsk

Yuzhno-Sakhalinsk

Moscow: Vnukovo

Positioning

Scheduled flights

Network carrier with

premium level of

service

Scheduled flights

Regional carriage in

the Far East

Scheduled flights

Low cost of carriage

on modern aircraft

Strategic focus

Growth of passenger

traffic originating from

Sheremetyevo airport

in order to boost hub

efficiency

Narrow-body aircraft

Wide-body aircraft

Visiting friends and relatives

Tourism

Business tourism

Moscow: Vnukovo / Sheremetyevo

Saint-Petersburg: Pulkovo

Scheduled and charter flights

Optimum relationship between quality and

price

Increase in operational efficiency

Development of Saint-Petersburg market

Satisfying the demand

for LCC carriage

(Moscow and Russian

regions excl. the Far

East

Medium-haul

scheduled operating

programs from the Far

Eastern airports,

social flights to local

Far Eastern airports

Multi-Brand Strategy

Positioning Premium product Mid-price regional / charter product Low-cost product Product for far east

2017 OFFERING:

• Simplified multi-brand product offering to capture customers in every market segment: from

premium to low-cost.

232 235 240

182

196

204

0

112

192

59

100

135

0

176

80

135

157

179

22

44

66

1

40

120

0

128

0

Message text

Chart Colours

255

0

0 Highlight

178

178

178

Table line colour 13

1.2 1.5 1.9 2.4 2.7

3.6 3.7

7.9

2010 2011 2012 2013 2014 2015 2016 2022F

Key International Transit Markets Key Examples of SVO Competitive Position

CAGR: 13.5%

NEA

SWA

SEA

ME

WE

EE

NA

International Transit Traffic

11.8% 11.6% 10.6% 14.0%

Share of International Transit in Aeroflot Airline PAX

International Transit Traffic (PAX mn)

10.3% 10.5% 13.1% 17.6%

London - Bangkok Madrid - Shanghai

London – Hong Kong New York - Delhi

Source: Great Circle Mapper, www.gcmap.com

Strengthening Position in International Connecting Traffic

• Aeroflot gradually but consistently increases presence in key international markets.

232 235 240

182

196

204

0

112

192

59

100

135

0

176

80

135

157

179

22

44

66

1

40

120

0

128

0

Message text

Chart Colours

255

0

0 Highlight

178

178

178

Table line colour 14

13

45

2017E 2022F

PREMIUM PRODUCT MID-PRICE REGIONAL / CHARTER PRODUCT

Manufacturer

Number of types

Strategic focus

in fleet

expansion

LOW-COST PRODUCT PRODUCT FOR FAR EAST

Fleet Strategy

Expected fleet

expansion

(annual average

number of a/c1)

• Expansion of Aeroflot Group fleet in line with existing guidelines on network development and

demand expectations to allow profitable growth of business

Five aircraft types Four aircraft types One aircraft type Three aircraft types

202 276

2017E 2022F

+36%

62 66

2017E 2022F

+6%

24 22

2017E 2022F

(8)% >3.5x

1 Average calculated based on aircraft phase-in moment during the year

Expansion of narrow-body

fleet (>85% of new additions)

Strengthening wide-body

segment by adding a new

type (A350)

Maintaining narrow-body aircraft

number (substituting additions)

Expanding wide-body segment

(addition of more Boeing 777)

Accelerated growing of

aircraft numbers

Higher efficiency and

maintaining utilization of

single-type fleet

Optimization of 50-70

seater aircraft numbers

Higher utilization of

existing fleet

Narrow-body

Wide-body

Airbus A320 (Family)

Boeing 737

SSJ 100

Airbus A330

Boeing 777

Airbus A320 (Family)

Boeing 737

Boeing 747

Boeing 777

Boeing 737 Airbus A319

DHC 8

DHC 6

― ―

232 235 240

182

196

204

0

112

192

59

100

135

0

176

80

135

157

179

22

44

66

1

40

120

0

128

0

Message text

Chart Colours

255

0

0 Highlight

178

178

178

Table line colour 15

Exploring Additional Revenue Opportunities

New routes in the markets of presence :

― Domestic routes: Belgorod, Salekhard, Khanty-Mansiysk

― International routes: Kostanay

Ancillary Revenue New Markets and Segments

New Products

RUB 12.5 bn ancillary revenue in

9M 20171

69.6% share of revenue from

partners under frequent flyer programme in other

(ancillary) revenue

LCC ancillary revenue in 9M 2017

RUB 1.3 bn

• Aeroflot Group strategy pursues opportunities for generating incremental revenue through new market and routes,

as well as an ever-expanding range of value-added ancillary services.

New markets: Portugal (Lisbon)

Pobeda addresses the LCC market segment that previously was underserved in Russia

Aeroflot airline opened service to 5 new destinations

Pobeda has generated new revenue streams for the Group by untapping

new market segment

Hotel revenue

Catering services onboard and Duty Free sales

Other partnerships – Europcar and DreamLines cruise operator

2.4% ancillary revenue

growth in 9M 2017 y-o-y

Partners, including under frequent flyer programme

Baggage fees

Seat upgrades (Space + business)

Third-party refueling services, ground handling and MRO

+

4 new destinations were opened in 2016 (Alicante, Valencia, Lyon, Syktyvkar)

1 Other revenue as reported in IFRS accounts (excluding the line with airline agreements, refuelling services and other revenue). This amount doesn't include income from various fees accounted as part of airline revenue.

232 235 240

182

196

204

0

112

192

59

100

135

0

176

80

135

157

179

22

44

66

1

40

120

0

128

0

Message text

Chart Colours

255

0

0 Highlight

178

178

178

Table line colour 16

875

65

45

20 1810 7

127

16

Flightinsurance

Virtual GiftCertificate

Medicalinsurance

Hotels Aeroexpress Europecar Guarantiedprice

Cruises Other

Profit Revenue

Online Ancillary Revenue

• Aeroflot airline has achieved significant progress in ancillary revenue generated via online channels.

• Nest year we plan to increase profit from ancillary revenues offered via online channels by 60-70%

Y-o-y change

Aeroflot airline ancillary revenues offered online

+30%

Note: virtual certificate sales calculated net of refunds

+257%

+258%

+110%

+210% +11% +67%

+115% -

/ /

2018 plans

Excess baggage fees

opportunity to purchase on

our web-site

A la carte menu

additional meals for

economy class passengers

Seat selection

seat selection for extra fees

for some fares

Insurance

selling insurance for foreign

passengers

mn RUB

232 235 240

182

196

204

0

112

192

59

100

135

0

176

80

135

157

179

22

44

66

1

40

120

0

128

0

Message text

Chart Colours

255

0

0 Highlight

178

178

178

Table line colour 17

Sheremetyevo development plan Evolution of key operating indicators (max. theoretical capacity)

• Capacity – 1 mn tones in 2017 (30% of total

airport volume)

Source: Sheremetyevo press-center, aviation explorer, public sources Note:1 According to Airport Research Center; 2 Data for 2017 is presented on the basis of official Aeroflot estimates for minimum transfer time between international inbound flight to terminal F and outbound local flight from terminal D, time for 2018/2026 is presented on the basis of Sheremetyevo airport estimates for minimal transfer time from terminal B through interterminal tunnel; 3 New cargo terminal with capacity of handling up to 380 th. tons per month was launched in September 2017

Sheremetyevo development program overview Key infrastructure objects to be launched in 2018

Sheremetyevo is set to become a prominent passenger and cargo hub

and provide all necessary conditions for long-term cooperation with

Aeroflot

For this purpose, Sheremetyevo developed a long-term modernization

program with the most important stage being the preparation of the

airport for the FIFA World Cup 2018

Modernization program includes construction of the third runway,

introduction of new passenger and cargo terminals as well as

reconstruction of existing premises

Terminal B Interterminal tunnel Runway 3

2018 2026 2017

2018

2019

2021

2024

Terminal C-2

Terminal C Terminal B

Warehouse

Cargo

Terminals

Runway-3

Runway-2

Runway-1

Fuel-filling

Complex

Terminal D

Terminal F Interterminal Tunnel

Terminal E

mm

pax

min

ute

s

th.

tons

per

month

Annual pax

capacity1

Minimum

transfer

time2

Flights per

hour1

Cargo

volumes

34 66 80

80 50 50

50 70 90

230 3803

700

flig

hts

Infrastructure Expansion to Support Future Growth

232 235 240

182

196

204

0

112

192

59

100

135

0

176

80

135

157

179

22

44

66

1

40

120

0

128

0

Message text

Chart Colours

255

0

0 Highlight

178

178

178

Table line colour 18

Strengthening customer services with a focus on digitalisation

and development of IT systems

Digitalization

Airport services

On-board services

Service marketing

HR and other

Development of commercial IT systems

Development of IT systems for production

NDC (New Distribution Capability) – direct distribution for agents

Cloud-based technology – management via shared pool of resources

Big Data and computer-aided training

Data management

Cyber-defences

Agile and new work methods

Corporate website

Mobile services for customers

Mobile applications for staff

Airport automation

Efficiency of business processes

Business development priorities

• Aeroflot Group continues to implement new technologies and approaches strengthening its

customer services and brand in the global market

[Option 1]

NETWORK OVERVIEW

GIORGIO CALLEGARI

DEPUTY CEO FOR STRATEGY

AND ALLIANCES

232 235 240

182

196

204

0

112

192

59

100

135

0

176

80

135

157

179

22

44

66

1

40

120

0

128

0

Message text

Chart Colours

255

0

0 Highlight

178

178

178

Table line colour 20

Relatively Stable Number of

Destinations …

Aeroflot Group Network Development Strategy

• Aeroflot Group continues to pursue a balanced approach to adding new destinations, with a focus on increasing frequencies on scheduled routes across all segments (international and domestic, long- and mid- haul) to improve network quality.

141 142

153

158

137 137

144

153

2014 2015 2016 9M 2017

Summer schedule Winter schedule

# of destinations

… due to Focus on Network Quality

and Frequency …

11.1 11.8

12.4

11.2 11.5

2014 2015 2016 9M 2016 9M 2017

Average scheduled flight frequency1

CAGR: 5.7%

2.8%

… with Further Improvements

Possible Across Segments.

9.8

13.1

12.1

6.8

International Domestic Mid-haul Long-Haul

Average scheduled flight frequency1

1 Average weekly frequency per route for Aeroflot Group excl. Pobeda.

98 abroad

55 in

Russia 9M 2017

232 235 240

182

196

204

0

112

192

59

100

135

0

176

80

135

157

179

22

44

66

1

40

120

0

128

0

Message text

Chart Colours

255

0

0 Highlight

178

178

178

Table line colour 21

Growth Contribution by Segment

Domestic 46%

International 54%

• Aeroflot will continue focusing on frequencies with a selective approach to adding new destinations (3-8 per

year):

― In 2017, Aeroflot launched services to Lisbon, Kostanay, Belgorod, Salekhard, Khanty-Mansiysk (5 new

destinations).

― In 2018, Aeroflot plans to begin servicing Saransk (a World Cup host city) and up to 3 destinations in

Europe and 1 in CIS (potential addition of Cairo).

• Increase in frequencies on key underserved markets with high transit potential.

Russia

Khanty-Mansiisk+7

Kaliningrad +4

Krasnoyarsk+7

Magnitogorsk +7

Novy Urengoy +7

Novosibirsk +7

Perm +5

Mineralnye Vody+7

Syktyvkar+7

Omsk +7

New routes:

Saransk +14

Total: +79

Europe

Athens +7

Barcelona +7

Budapest +7

Tenerife +1

Bologna +7

New routes:

3 new destinations with 7

flight frequency per each

Total: +50

Middle East

Dubai +7

Antalya+7

Total: +14

Asia

Bangkok +7

Male +1

Total: +8

CIS

Astana+3

New routes:

Kyzylorda +4

Total: +7

Aeroflot Airline Network – Plans for 2018

Increased Frequencies (per Week) on the Following Routes: Operating Growth by Region

4.2% 5.1%

9.0% 9.1% 11.1%

20.6%

CIS Asia Americas Russia EuropeMiddle East

9.5% total growth

PAX growth, y-o-y – for Aeroflot airline

Share of PAX growth, y-o-y

232 235 240

182

196

204

0

112

192

59

100

135

0

176

80

135

157

179

22

44

66

1

40

120

0

128

0

Message text

Chart Colours

255

0

0 Highlight

178

178

178

Table line colour 22

World Cup Case Study: Brazil 2014 and Germany 2006

Air traffic evolution1 World Cup

12 June – 13 July 2014

9 June – 9 July 2006

Impact on economy

480k of foreign World Cup guests

$13bn injected in Brazil economy

Source: World Bank, public sources, Economic Research Institute Foundation, Deutsche Welle

Note: 1 Passengers carried in the country by the means of air travel; data presented under “impact on economy” are estimations of the third-party sources

$2.3bn invested in airports

$400mm of additional tourism revenue

50k additional jobs created

$2.6bn additional retail sales

95.6

100.4

2013 2014

90.8

99.6

2005 2006

million PAX

12 cities

12 cities

Carriers’ operating data

2013 2014 2015

PAX, million 66.7 67.8 67.8

change, % 3.1% 1.7% 0.0%

PLF 80.8% 83.4% 83.1%

change, p.p. 2.2 2.6 (0.3)

2013 2014 2015

PAX, million 36.6 40.1 38.0

change, % n/a 9.5% (2.0)%

PLF 69.9% 76.9% 77.2%

change, p.p. (0.3) 7.0 0.3

2005 2006 2007

PAX, million 51.3 53.4 62.9

change, % 0.7% 4.2% 17.7%

PLF 75.0% 75.2% 77.4%

change, p.p. 1.0 0.2 2.2

28

• World Cup had mixed effect on airlines in the hosting markets, with short-term increase in demand, but without any changes in strategic trends and company-specific factors.

232 235 240

182

196

204

0

112

192

59

100

135

0

176

80

135

157

179

22

44

66

1

40

120

0

128

0

Message text

Chart Colours

255

0

0 Highlight

178

178

178

Table line colour 23

Aeroflot and FIFA World Cup in Russia

Routes to World Cup Locations

- routes per week Rossiya routes Aeroflot routes

Volgograd (830k from Moscow) (48k from St. Pete)

Saint Petersburg (4.5mm from Moscow)

Kaliningrad (1.2mm from Moscow) (380k from St. Pete)

Moscow (4.5mm from St.Pete)

Saransk

Rostov-on-Don (1.6mm from Moscow) (255k from St. Pete)

Sochi (3.6mm from Moscow)

(530k from St. Pete)

Samara (1.2mm from Moscow) (225k from St. Pete)

Kazan (1.2mm from Moscow) (135k from St. Pete)

Ekaterinburg (1.9mm from Moscow) (270k from St. Pete)

Nizhny Novgorod

(520k from Moscow) (31k from St. Pete)

sourced by:

• The 2018 World Championship is expected to result in traffic flow growth between city-pairs during the championship (mid-June – mid-July

2018) yet there is still risk of substitution effect (passengers travelling for holidays and fans). Also necessity to host the event at the highest

level will inccur additional expenses.

63

26

15

35

42

13

42

10

14

38

27

13

56

7

49

7 7

42

Aeroflot Efforts

General preparation

Establishment of specially-dedicated working group to

coordinate preparation process and day-to-day routes

allocation for World Cup 2018

1

Operations

Reserve aircraft to be based in the main cities of the World

Cup

3

IT infrastructure

Introduction of advanced IT solutions to automate

processing of personal details of the World Cup guests

4

Staff

Additional training sessions for staff and increased

headcount of english-speaking personnel in call centres and

representative offices

5

Passengers

Transportation of football fans, delegations and athletes

2

Spare parts

Increased warehouse stock of replacement components to

quickly repair aircraft and proceed with scheduled

maintenance works if needed

6

Other preparatory measures 7

68

68

from Moscow:

from Moscow:

from Moscow:

from Moscow:

from St. Pete:

from St. Pete:

from St. Pete:

from St. Pete:

from St. Pete:

from St. Pete:

from St. Pete:

X – weekly # of flights in 2017 summer schedule

(XXmm from …) - 2017E PAX (based on traffic flows on the leg, not a city-pair market)

*

Note: Pobeda also operates services to some host cities, including intra-regional flights. For information on Pobeda’s flights please refer to the respective section of the presentation

FINANCIAL OVERVIEW

SHAMIL KURMASHOV

DEPUTY CEO FOR COMMERCE AND FINANCE

232 235 240

182

196

204

0

112

192

59

100

135

0

176

80

135

157

179

22

44

66

1

40

120

0

128

0

Message text

Chart Colours

255

0

0 Highlight

178

178

178

Table line colour 25

Guidance

Indicator 9M 2017 YTD 2017 Updated Targets 2018 Target

Passenger

Traffic (PAX) +16.8% +14%-15% +11%-12%

Passenger

Traffic (RPK) +18.0% +15%-16% +9%-10%

Capacity (ASK) +16.2% +14%-15% +9%-10%

Passenger Load

Factor (%) 83.7% > 82.0% 82.0%+

Aeroflot Group – operating targets 2017 and 2018

Aeroflot Group – financial targets

Revenue

growth

• 2017: +7%+ yoy growth

• 2018: acceleration to 10-11%+ (ex FX), positive pricing effect

Growth in line with operating

expansion, company will target to

achieve positive impact from yields

(ex FX)

Costs • Pressure from fuel price, cockpit wage indexation

• Selective investment in product improvement

Introduction of IFRS 16 (all lease

recognized on BS, Operating lease

cost migrates to depreciation and

Interest) = EBITDA margin affected.

Currently we are selecting the most

efficient approach to standard

application and analysing PL effects. EBITDA margin

• Normalized level of approx. 10% with possible up and down

deviation based on the macro and market conditions

Indicator Short-mid term 2019 and beyond

QUESTIONS AND ANSWERS SESSION

Aeroflot Group Capital Markets Day 2017 Dmitry Saprykin

Chief Executive Officer

Rossiya Airlines

St. Petersburg (LED)

Moscow (VKO)

Russia Airlines – Regional Product for Savvy Passengers

Business Highlights

Focus on the mid-price segment

(optimal price & quality combination) 1

2

3

4

5

Strong position in St. Petersburg - second largest

market in Russia

Diversified operations with secondary base at

Moscow’s Vnukovo airport

Focus on regional flights with selective exposure

to key international markets

Strong positions in charter segment – long-term

partnership with Biblio Globus (Russia’s largest

tour operator)

Airport Hubs and Fleet

• Aeroflot Group’s regional business was reorganised in 2016, when Rossiya Airlines merged with

Donavia and Orenair.

• Rossiya Airlines helps the Group capture all market segments and secures presence in the second

largest domestic market – St. Petersburg.

41 routes from LED

31 aircraft based at LED

14 routes from VKO

30 aircraft based at VKO

Base airport Other airports (with P-t-P flights)

2 routes from ROV -

31 aircraft

Based in LED Based in VKO

A320 Family B737

15 aircraft

B777 B747

6 aircraft 9 aircraft

Rostov (ROV)

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

Domestic International Total

29.9%

34.5%

35.6%

Moscow

Other domestic regions

International

75.2%

24.8%

St. Petersburg – Second Largest Market in Russia

7.2 7.9 8.3 6.2

7.7

7.1 5.6 5.0

4.0

5.0

2014 2015 2016 9М 2016 9М 2017

Domestic International

13.5 13.3 12.6

10.2

CAGR:

(3.6%)

14.3 +24.2%

9M 2017, by number of seats 9M 2017, number of seats

Foreign carriers

Russian carriers

Pulkovo – Largest Regional Airport High Market Seasonality

Established Links to Cities in Russia and Abroad Strong Market Position with Prospects for Growth

12M 2016, million PAX

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

million PAX

• St. Petersburg is Russia’s largest regional market, with a large tourist component in the international segment, particularly in the summer season, and significant number of business passengers on domestic routes.

• Rossiya is the leading airline in one of the country’s key markets.

31.7%

13.3%

7.7%

5.5%

4.5%

2.3%

10.2%

24.8%

Rossiya

Aeroflot

S7 Group

Ural airlines

Utair

Pobeda

Other Russian carriers

Foreign carriers

Rossiya Network

Rossiya Traffic Decomposition (9M 2017)

Rossiya Airline’s Network (Winter Schedule 2017/2018)

42.1% 20.4% Scheduled

Charter 6.9% 20.3% 7.2%

St. Petersburg Moscow Regions

65.5%

34.5%

Number of Scheduled Routes

3.0%

Average Weekly Flight Frequency per Route

8.3

4.5

2.1

5.3

DomesticScheduled

InternationalScheduled

InternationalCharter

Rossiya Total

Alma-Ata

Arkhangelsk

Barcelona

Paris

Chelyabinsk

Rome

Geneva

Hamburg

Istanbul

Kaliningrad Krasnoyarsk

Samara

Larnaca

Murmansk

Mineralnye

Vody

Milan

Nice

Omsk

Novosibirsk

Prague Orenburg

Surgut

Samarkand

Berlin

Tashkent

Tyumen

Astana

Vienna

Magadan

Khabarovsk

Krasnodar

Petropavlovsk-Kamchatskiy

Yuzhno-Sakhalinsk

Vladivostok

Tel Aviv

Makhachkala

Saint-Petersburg

Perm Yekaterinburg

Simferopol Anapa

Adler

Munich

Düsseldorf

Ufa

Syktyvkar

Rostov

Moscow Kazan

• Scheduled passenger throughput from St. Petersburg forms the majority of Rossiya’s traffic; the airline’s secondary base in Moscow contributes the same level of passenger numbers but with a higher proportion from the charter segment.

46

18 16

41

14

2

from St. Petersburg from Moscow from Russian regions

Summer 2017 Winter 2017/2018

6.8

2.0

4.8

9.0

3.3

5.7

Total International Domestic

9M 2016 9M 2017

18.5

7.2

11.3

26.6

11.9

14.7

Total International Domestic

9M 2016 9M 2017

83.2%

86.1%

81.3%

85.0%

92.0%

79.4%

Total International Domestic

9M 2016 9M 2017

Operating Performance

+32.6%

+66.2%

+18.5%

+43.7%

+64.9%

+30.2%

+1.9 p.p.

+5.9 p.p.

(1.9 p.p.)

million PAX billion ASK %

Passenger Traffic Passenger Capacity Passenger Load Factor

• In 2017 Rossiya significantly grew its operational volumes as capacity increased and demand for

international flights revived.

• High demand and the development of the charter segment supported high passenger load factor.

Note: 2016 data presented pro-forma (incl. operational results of Donavia and Orenair).

24,9%

Scheduled Charter

8.2

21.7

9M 2016 9M 2017

Charter Segment

Highlights Growing Volumes of Charter Segment…

… Leads to Structural Changes in Business Mix

Key partner • Biblio-Globus

Network • Popular international and Russian tourist routes

Fleet • 8 Boeing 737-800 narrow-bodies

• 7 Boeing 747-400 wide-bodies

Results

(9M 2017)

• PAX: 3.1 million (>2.8x y-o-y),

• International + 73.1%

• Domestic + 26.9%

• RPK: 10.1 billion pkm (>2.9x year-on-year)

• PLF: 96.2% (+3.3 p.p. year-on-year)

Contract

terms

• Charter partner pays the cost of providing commercial capacity on the

aircraft to carry passengers, luggage and cargo on each flight (aircraft

capacity price), which includes:

- direct costs of flight operation;

- payment for flight hours based on number of flight hours for the flight

and cost of flight hour for the aircraft type

Length • Contract through 2018

• Plan to extend to 2022

PAX growth, million Revenue growth, RUB billion

RPK, 9M 2016 RPK, 9M 2017

1.1

3.1

9M 2016 9M 2017

>2.8x >2.6x

44,6%

Top 5 Charter Routes by PAX

Total Share of Rossiya’s PAX – 35.4%

• Charter segment has grown significantly, and has almost doubled its share of RPKs to 45%.

thousand PAX

301.1 264.9 253.1

140.2 136.2

Moscow – Antalya

Moscow – Larnaca

Moscow – Sochi

St. Petersburg – Larnaca

Moscow – Phuket

Aircraft Type 31.12.2017

(expected)

31.12.2018

(plan) Change

Airbus A319-100 26 23 (3)

Airbus A320-200 5 6 1

Boeing 737-800 16 16 -

Narrow-body 47 45 (2)

Boeing 747-400 9 9 -

Boeing 777-300 5 10 5

Wide-body 14 19 5

Total fleet 61 64 3

Note: Excluding six An-148 aircraft which were subleased.

Rossiya’s Fleet by Type of Aircraft

Rossiya’s Fleet by Type of Ownership

14.8%

85.2%

Finance lease

Operating lease

Fleet Composition and 2018 Development Plan

• Rossiya’s fleet consists of 61 airliners. The airline plans to add wide-bodies and take a number of narrow-bodies out of operation.

Rossiya Airline’s Fleet Breakdown

77.0%

23.0% Narrow-body

Wide-body

Focus for Rossiya in 2018 and Beyond

• Further development of the route network in the scheduled and tourist segments, with tactical adjustments:

• Increase capacity on domestic routes

• Optimisation of a number of flights in the international segment (reopening of Egypt provides

opportunities)

• Regular passenger flights on available routes to the Far East and South of Russia

• Transfer of Boeing 777-300 wide-bodies used on flights to Far East to SVO (SU code) in late 2018-early

2019 depending on infrastructure availability to promote connecting synergies

• Growth of the wide-body fleet, with five Boeing 777-300ERs added in 2018

• Long-term targets:

• Further increase of operational efficiency: increased flight time per aircraft, cost optimisation including

by fleet renewal

• Development of St. Petersburg base, including long-haul operations and European network

1

2

3

4

5

Thank you

for your attention!

Graphics source files saved at

\\Iblns001vf\aeroflotcs\02

Presentations\2017\Graphics\

AI\02 Cover A4_Pobeda.ai

\\Iblns001vf\aeroflotcs\02

Presentations\2017\Graphics\

JPEG\02 Cover

A4_Pobeda_1.jpg

Please update these links if

updating or moving the files

13 December 2017

Aeroflot Group Capital Markets Day 2017

Low Cost Carrier - Pobeda

Andrey Kalmykov

Chief Executive Officer

Pobeda Airlines

33

50

102

255

255

255

227

238

249

33

50

102

0

152

214

102

189

229

0

130

193

185

202

210

229

10

128

33

50

102

77

204

255

163

215

239

Body Text

Background

Message Box,

Table Highlight

Heading Boxes

Primary Eight

Chart Colours

Secondary Eight

Chart Colours

5.30” / 13.46cm 0.13” / 0.33cm 0.13” / 0.33cm 5.30” / 13.46cm

2.36” / 5.99cm

1.98” / 5.04cm

0.28” / 0.70cm

0.64” / 1.63cm

2.81” / 7.14cm

3.16” / 8.02cm

The GS logo and IBD identifier must appear

on every slide unless the banker has

obtained approval for their removal. You can

position them in the header or footer and

resize as necessary

Page Setup

Width: 29.7cm (11.69”)

Height: 21.0cm (8.27”)

Prints as A4

Page Setup should

only be changed if

banker requests a

specific size. If this is

the case, note the

banker name and

instructions in this box

65

193

255

213

223

228

248

99

179

85

113

200

137

221

255

194

229

245

128

214

255

227

234

237

2

Pobeda – Russia’s First Low-cost

Carrier

> 80 routes in total (2017)

47 routes in Winter Schedule 2017/2018

– 33 domestic destinations

– 14 international destinations

14 unique destinations (cities) for the Group

12 Boeing 737-800NG¹

4 Aircraft delivered in 2017

< 3y Average age of the fleet

¹ As of 30 September 2017; ² Based on 30.09.2017 LTM passenger traffic and average headcount over the period

Network Overview Fleet Overview

Efficiency Metrics

One of the Most fuel efficient LCCs among

European airlines

25 minutes of airplane turnaround time

96.8% passenger load factor in 3Q 2017

6.0k PAX per employee²

Key Highlights (9M 2017)

Top 7 largest airline in Russia

18.7k Flights

3.3mln PAX

RUB 16.0bn in revenues

RUB 6.7bn in EBITDAR

33

50

102

255

255

255

227

238

249

33

50

102

0

152

214

102

189

229

0

130

193

185

202

210

229

10

128

33

50

102

77

204

255

163

215

239

Body Text

Background

Message Box,

Table Highlight

Heading Boxes

Primary Eight

Chart Colours

Secondary Eight

Chart Colours

5.30” / 13.46cm 0.13” / 0.33cm 0.13” / 0.33cm 5.30” / 13.46cm

2.36” / 5.99cm

1.98” / 5.04cm

0.28” / 0.70cm

0.64” / 1.63cm

2.81” / 7.14cm

3.16” / 8.02cm

The GS logo and IBD identifier must appear

on every slide unless the banker has

obtained approval for their removal. You can

position them in the header or footer and

resize as necessary

Page Setup

Width: 29.7cm (11.69”)

Height: 21.0cm (8.27”)

Prints as A4

Page Setup should

only be changed if

banker requests a

specific size. If this is

the case, note the

banker name and

instructions in this box

65

193

255

213

223

228

248

99

179

85

113

200

137

221

255

194

229

245

128

214

255

227

234

237

3

Pobeda Recognized as One of

the Most Efficient LCC in the Industry

Source: Company data, public data 1 For 12 month ended 31 March 2017; 2 For 12 months ended 30 September 2017, financials are converted at GBP/ EUR exchange rate of 0.87; 3 For 6 months ended 30 September, 2017 ; 4

For 12 months ended 31 December 2016, financials are converted at AED / EUR exchange rate of 4.06.

CASK

(EUR cents) 3.0 3.61 5.82 3.13 3.7 4.14

Single class Yes Yes Yes Yes Yes Yes

Aircraft utilization rate

(hours)

13.1

(15+ in summer

season)

10.4 10.9 13.5 12.1 up to 15.0

Fleet composition &

average age

(years)

B737-800

Avg Age: <3.0

B737-800

Avg Age: 6.5

A319, A320

Avg Age: 7.1

A320, A321

Avg Age: 4.5

B737-800, A320Neo,

A321Neo

Avg Age: 5.9

A320 Family

Avg Age: 3.0

Ancillary revenue

(EUR per PAX) 5.9 14.01 13.52 29.33 10.13 NA

Use of secondary

airports

All International

Flights

Half of Airports are

Secondary

Focused on Primary

Airports Majority of Flights Majority of Flights Majority of Flights

33

50

102

255

255

255

227

238

249

33

50

102

0

152

214

102

189

229

0

130

193

185

202

210

229

10

128

33

50

102

77

204

255

163

215

239

Body Text

Background

Message Box,

Table Highlight

Heading Boxes

Primary Eight

Chart Colours

Secondary Eight

Chart Colours

5.30” / 13.46cm 0.13” / 0.33cm 0.13” / 0.33cm 5.30” / 13.46cm

2.36” / 5.99cm

1.98” / 5.04cm

0.28” / 0.70cm

0.64” / 1.63cm

2.81” / 7.14cm

3.16” / 8.02cm

The GS logo and IBD identifier must appear

on every slide unless the banker has

obtained approval for their removal. You can

position them in the header or footer and

resize as necessary

Page Setup

Width: 29.7cm (11.69”)

Height: 21.0cm (8.27”)

Prints as A4

Page Setup should

only be changed if

banker requests a

specific size. If this is

the case, note the

banker name and

instructions in this box

65

193

255

213

223

228

248

99

179

85

113

200

137

221

255

194

229

245

128

214

255

227

234

237

4

Key Development Milestones

First flight from

Moscow to Volgograd in

December

Total fleet of 8 aircraft

as of year-end

Pobeda becomes Top-10 airline in

Russia

Seasonal flights to Sochi and

Anapa are conducted from the

regions

Launch of international flight service

Cumulative PAX of 3.1 mln

Total fleet of 12 aircraft as of year-

end

PLF reaches historical high of 96.8% in Q3 2017

Active development of intra-regional flights as well

as international flights from the regions

Addition of 4 aircraft in Q4 2017

Cumulative PAX of c. 4.6 mln expected by the

year-end

Development of international

network and intra-regional flights

Pobeda enters St. Petersburg

market

Cumulative PAX exceeds 4 mln

33

50

102

255

255

255

227

238

249

33

50

102

0

152

214

102

189

229

0

130

193

185

202

210

229

10

128

33

50

102

77

204

255

163

215

239

Body Text

Background

Message Box,

Table Highlight

Heading Boxes

Primary Eight

Chart Colours

Secondary Eight

Chart Colours

5.30” / 13.46cm 0.13” / 0.33cm 0.13” / 0.33cm 5.30” / 13.46cm

2.36” / 5.99cm

1.98” / 5.04cm

0.28” / 0.70cm

0.64” / 1.63cm

2.81” / 7.14cm

3.16” / 8.02cm

The GS logo and IBD identifier must appear

on every slide unless the banker has

obtained approval for their removal. You can

position them in the header or footer and

resize as necessary

Page Setup

Width: 29.7cm (11.69”)

Height: 21.0cm (8.27”)

Prints as A4

Page Setup should

only be changed if

banker requests a

specific size. If this is

the case, note the

banker name and

instructions in this box

65

193

255

213

223

228

248

99

179

85

113

200

137

221

255

194

229

245

128

214

255

227

234

237

5

Key Operational Highlights (1/2)

Pobeda continuously focuses on increasing the number of

flights of its fleet, driving capacity utilization and operational

efficiency levels

For 9M 2017, Pobeda’s seat load factor reached 95%, one of

the highest levels in the Russian airline space

Number of Flights Capacity & Load Factor

81.2% 88.3% 87.6% 94.5%

20,015 22,460

17,478 15,057

48

3,208

2,212

3,616

20,063

25,668

19,690 18,673

2015 2016 9M 2016 9M 2017

Domestic International

27.9%

(5.2%)

5,729 6,272

4,896 4,558

18

1,334

941 1,504

5,746

7,606

5,837 6,062

2015 2016 9M 2016 9M 2017

Domestic Flights (ASK, mln) International Flights (ASK, mln)

32.4%

3.9%

Source: Company data

33

50

102

255

255

255

227

238

249

33

50

102

0

152

214

102

189

229

0

130

193

185

202

210

229

10

128

33

50

102

77

204

255

163

215

239

Body Text

Background

Message Box,

Table Highlight

Heading Boxes

Primary Eight

Chart Colours

Secondary Eight

Chart Colours

5.30” / 13.46cm 0.13” / 0.33cm 0.13” / 0.33cm 5.30” / 13.46cm

2.36” / 5.99cm

1.98” / 5.04cm

0.28” / 0.70cm

0.64” / 1.63cm

2.81” / 7.14cm

3.16” / 8.02cm

The GS logo and IBD identifier must appear

on every slide unless the banker has

obtained approval for their removal. You can

position them in the header or footer and

resize as necessary

Page Setup

Width: 29.7cm (11.69”)

Height: 21.0cm (8.27”)

Prints as A4

Page Setup should

only be changed if

banker requests a

specific size. If this is

the case, note the

banker name and

instructions in this box

65

193

255

213

223

228

248

99

179

85

113

200

137

221

255

194

229

245

128

214

255

227

234

237

6

Key Operational Highlights (2/2)

Significant increase in the flight hours due to opening of new

routes and efficient utilization of the fleet

For 9M 2017, daily utilization rate of Pobeda’s fleet reached

13.1 hours (exceeding 15h during peaks) – one of the highest

levels in the industry

Flight Hours Average Daily Flight Hours per Aircraft

41,017

53,892

41,165 42,949

2015 2016 9M 2016 9M 2017

31.4% 4.3%

11.3

12.3 12.5 13.1

2015 2016 9M 2016 9M 2017

9.2% 4.7%

1

Source: Company data 1 Average number of aircraft calculated as number of a/c at the beginning of the period plus number of a/c at the end of the period divided by two

33

50

102

255

255

255

227

238

249

33

50

102

0

152

214

102

189

229

0

130

193

185

202

210

229

10

128

33

50

102

77

204

255

163

215

239

Body Text

Background

Message Box,

Table Highlight

Heading Boxes

Primary Eight

Chart Colours

Secondary Eight

Chart Colours

5.30” / 13.46cm 0.13” / 0.33cm 0.13” / 0.33cm 5.30” / 13.46cm

2.36” / 5.99cm

1.98” / 5.04cm

0.28” / 0.70cm

0.64” / 1.63cm

2.81” / 7.14cm

3.16” / 8.02cm

The GS logo and IBD identifier must appear

on every slide unless the banker has

obtained approval for their removal. You can

position them in the header or footer and

resize as necessary

Page Setup

Width: 29.7cm (11.69”)

Height: 21.0cm (8.27”)

Prints as A4

Page Setup should

only be changed if

banker requests a

specific size. If this is

the case, note the

banker name and

instructions in this box

65

193

255

213

223

228

248

99

179

85

113

200

137

221

255

194

229

245

128

214

255

227

234

237

7

11,248

19,131

15,723 16,002

2015 2016 9M 2016 9M 2017

Key Financial Highlights (1/3)

Source: Company data

¹ Based on 30.09.2017 LTM passenger traffic and average headcount over the period

Revenue (RUB mln) Operating Expenses (RUB mln)

Revenue growth was primarily driven by volume and increase

in PLF as number of aircraft remained flat in 9M 2017

Growth in operating expenses was mainly attributed to

growth of fuel costs, increase in maintenance expenses as

well as aircraft and traffic servicing costs amid growing

volumes of business

70.1%

1.8%

Pobeda’s Headcount, 30.09.2017

803 total headcount

67 employees per aircraft

6.0k PAX per employee¹

28.2% 28.9% 30.4% 30.5%

18.6% 22.7%

23.8% 23.6% 12.0%

12.1%

12.1% 12.9%

25.2%

25.0%

26.7% 21.0% 10.0%

7.5%

7.5% 10.3%

6.1%

3.6%

1.8% 11,585

14,697

10,516 11,791

2015 2016 9M 2016 9M 2017(0.4)%

Cabin Crew 50%

Cockpit Crew 27%

Ground Crew and Other

23%

Fuel Aircraft, Traffic and Passenger Servicing Staff

Operating lease Maintenance Other

33

50

102

255

255

255

227

238

249

33

50

102

0

152

214

102

189

229

0

130

193

185

202

210

229

10

128

33

50

102

77

204

255

163

215

239

Body Text

Background

Message Box,

Table Highlight

Heading Boxes

Primary Eight

Chart Colours

Secondary Eight

Chart Colours

5.30” / 13.46cm 0.13” / 0.33cm 0.13” / 0.33cm 5.30” / 13.46cm

2.36” / 5.99cm

1.98” / 5.04cm

0.28” / 0.70cm

0.64” / 1.63cm

2.81” / 7.14cm

3.16” / 8.02cm

The GS logo and IBD identifier must appear

on every slide unless the banker has

obtained approval for their removal. You can

position them in the header or footer and

resize as necessary

Page Setup

Width: 29.7cm (11.69”)

Height: 21.0cm (8.27”)

Prints as A4

Page Setup should

only be changed if

banker requests a

specific size. If this is

the case, note the

banker name and

instructions in this box

65

193

255

213

223

228

248

99

179

85

113

200

137

221

255

194

229

245

128

214

255

227

234

237

8

Key Financial Highlights (2/3)

Source: Company data

RASK growth was slightly impacted by increasing

competition on domestic routes and promotions aimed at

increasing brand awareness

Pobeda has significant cost advantages over other Russian and

Foreign carriers.

Increase in CASK was mainly driven by higher maintenance as

average age of the fleet increased to 3 years and higher fuel price

RASK (RUB) CASK (RUB)

1.96

2.52

2.69 2.64

2015 2016 9M 2016 9M 2017

0.57 0.56 0.55 0.59

0.37 0.44 0.43 0.46

0.24 0.23 0.22

0.25

0.51 0.48 0.48 0.41

0.20 0.14 0.13 0.20

0.12 0.07 0.03

2.02 1.93

1.80

1.94

2015 2016 9M 2016 9M 2017

28.5% (2.0%)

Fuel Aircraft, Traffic and Passenger Servicing Staff

Operating lease Maintenance Other

33

50

102

255

255

255

227

238

249

33

50

102

0

152

214

102

189

229

0

130

193

185

202

210

229

10

128

33

50

102

77

204

255

163

215

239

Body Text

Background

Message Box,

Table Highlight

Heading Boxes

Primary Eight

Chart Colours

Secondary Eight

Chart Colours

5.30” / 13.46cm 0.13” / 0.33cm 0.13” / 0.33cm 5.30” / 13.46cm

2.36” / 5.99cm

1.98” / 5.04cm

0.28” / 0.70cm

0.64” / 1.63cm

2.81” / 7.14cm

3.16” / 8.02cm

The GS logo and IBD identifier must appear

on every slide unless the banker has

obtained approval for their removal. You can

position them in the header or footer and

resize as necessary

Page Setup

Width: 29.7cm (11.69”)

Height: 21.0cm (8.27”)

Prints as A4

Page Setup should

only be changed if

banker requests a

specific size. If this is

the case, note the

banker name and

instructions in this box

65

193

255

213

223

228

248

99

179

85

113

200

137

221

255

194

229

245

128

214

255

227

234

237

9

Key Financial Highlights (3/3)

Source: Company data

EBITDAR and EBITDA (RUB mln) Net Income (RUB mln)

Revenue growth was offset by the less favourable fuel cost environment, increased spending on maintenance and staff cost

growing ahead of fleet expansion, resulting in pressures on margins compared to 9M 2016 results

EBITDAR margin, % EBITDA margin, %

NI margin, %

2,587

8,122 8,021

6,703

(328)

4,442

5,214

4,230

2015 2016 9M 2016 9M 2017

EBITDAR, RUB mln EBITDA, RUB mln

23% NM 42% 51% 42% 23% 33% 26%

(80)

3,747

4,339

3,619

2015 2016 9M 2016 9M 2017

20% 28% 23% NM

33

50

102

255

255

255

227

238

249

33

50

102

0

152

214

102

189

229

0

130

193

185

202

210

229

10

128

33

50

102

77

204

255

163

215

239

Body Text

Background

Message Box,

Table Highlight

Heading Boxes

Primary Eight

Chart Colours

Secondary Eight

Chart Colours

5.30” / 13.46cm 0.13” / 0.33cm 0.13” / 0.33cm 5.30” / 13.46cm

2.36” / 5.99cm

1.98” / 5.04cm

0.28” / 0.70cm

0.64” / 1.63cm

2.81” / 7.14cm

3.16” / 8.02cm

The GS logo and IBD identifier must appear

on every slide unless the banker has

obtained approval for their removal. You can

position them in the header or footer and

resize as necessary

Page Setup

Width: 29.7cm (11.69”)

Height: 21.0cm (8.27”)

Prints as A4

Page Setup should

only be changed if

banker requests a

specific size. If this is

the case, note the

banker name and

instructions in this box

65

193

255

213

223

228

248

99

179

85

113

200

137

221

255

194

229

245

128

214

255

227

234

237

10

Future Development Plans

Which Will Allow Us To Expand Our Route Network1 Over the Next Years We Plan To

Increase Our Fleet Size…

• 4 Boeing 737-800NG to be

delivered in 4Q 2017

• 29 Boeing 737-800NG to be

delivered in 2018-2022

Saint Petersburg

Moscow

Sochi Makhachkala

Krasnodar

Rostov

Penza Saransk

Belgorod

Nizhnekamsk

Krasnodar

Kutaisi

Leipzig

Verona

Istanbul

Bordeaux

Paderborn

Bremen

Nuremberg

Girona

Reus

Pisa

Bergamo

Memmingen

Cologne

Bratislava

Tivat

Alanya

Paphos Larnaca

Gyumri

Vladikavkaz

Tbilisi

Gelenzhik

Anapa

Nalchik Nazran

Astrakhan

Volgograd

Samara

Ufa

Kazan

Cheboksary

Perm Tyumen

Ekaterinburg

Chelyabinsk

Nab. Chelny

Novosibirsk Krasnoyarsk

Surgut

Almaty

Ulyanovsk

Murmansk

Current Destinations

New Destinations

… Resulting in Strong PAX

Growth Well Above the Market

20

16

= 12

= 45

20

22

F

= 4.3mln

+24% CAGR

=c15.7mln

+25% CAGR

20

16

2

02

2F

Minsk

Low frequency (< 14 flights per week)

Exploiting underserved and smaller markets, including inter-regional routes

Expanding international flights to secondary airports

Network Development Principles

1New destinations shown for 2018

33

50

102

255

255

255

227

238

249

33

50

102

0

152

214

102

189

229

0

130

193

185

202

210

229

10

128

33

50

102

77

204

255

163

215

239

Body Text

Background

Message Box,

Table Highlight

Heading Boxes

Primary Eight

Chart Colours

Secondary Eight

Chart Colours

5.30” / 13.46cm 0.13” / 0.33cm 0.13” / 0.33cm 5.30” / 13.46cm

2.36” / 5.99cm

1.98” / 5.04cm

0.28” / 0.70cm

0.64” / 1.63cm

2.81” / 7.14cm

3.16” / 8.02cm

The GS logo and IBD identifier must appear

on every slide unless the banker has

obtained approval for their removal. You can

position them in the header or footer and

resize as necessary

Page Setup

Width: 29.7cm (11.69”)

Height: 21.0cm (8.27”)

Prints as A4

Page Setup should

only be changed if

banker requests a

specific size. If this is

the case, note the

banker name and

instructions in this box

65

193

255

213

223

228

248

99

179

85

113

200

137

221

255

194

229

245

128

214

255

227

234

237

11

Source: Bloomberg, Company data, public data

Note: Peers’ data obtained from Bloomberg on 15.12.2017 (except for passenger traffic). Income (Loss) from Continuing Operations used to derive comparable Net income data after tax. Data

annualized for the last twelve months preceding 30.09.2017 (9M 2017 + 4Q 2016). Pobeda’s financials annualized for the last twelve months preceding 30.09.2017, data converted from RUB

according to respective reporting periods average FX rates for periods used in the calculation (9M 2016, 12M 2016, 9M 2017). Passenger traffic data obtained from carriers’ websites.

LTM, 30.09.2017, in

millions EUR (if not

indicated otherwise)

Year of Incorporation 2014 1985 1995 2003 1990 2003

Passenger traffic

(million passengers,

LTM, 30.09.2017) 4.4 127.1 80.2 26.9 26.8 8.6

Revenue 298 6,942 5,794 1,799 1,294 912

Net Income 49 1,410 350 281 67 149

Market Capitalization,

millions EUR (14.12.2017) n/a 19,393 6,454 4,028 710 1,315

We aim at expansion of Pobeda’s business, which will result in growing contribution of Company to the Group’s operating and

financial results and higher shareholder value

Pobeda’s Peer Group Overview

Graphics source files saved at

\\Iblns001vf\aeroflotcs\02

Presentations\2017\Graphics\

AI\02 Cover A4_Pobeda.ai

\\Iblns001vf\aeroflotcs\02

Presentations\2017\Graphics\

JPEG\02 Cover

A4_Pobeda_3.jpg

Please update these links if

updating or moving the files

13 December 2017

Thank you for

attention!