Aeroflot · RUS:AFLT
Aeroflot — Q3 and 9M 2021 Earnings Presentation
37 slides from Aeroflot's earnings presentation, Nov 29, 2021
Slide 1: Aeroflot Group Q3 & 9M 2021 IFRS Results
AEROFLOT GROUP Q 3 & 9 M 2 0 2 1 I F R S R E S U LT S 29 November 2021 Speakers: Andrey Chikhanchin – Deputy CEO for Commerce and Finance Andrey Panov – Deputy CEO for Strategy, Service and Marketing Ivan Batanov – Head of Revenue Management
Slide 2: Disclaimer
Disclaimer This document has been prepared by PJSC “Aeroflot” (the “Company”). By attending the meeting where the presentation is made, or by reading the presentation slides, you agree to the following. This document does not constitute or form part of any advertisement of securities, any offer or i
Slide 3: Aeroflot Group Q3 2021 Highlights
Aeroflot Group Q3 2021 Highlights Strong domestic traffic1 Bottom line improvement Yield growth2 Cash reserves3 Million PAX Net income/(loss), billion RUB RUB/RPK Billion RUB +27.4% +7.3% 4.47 11.6 93.8 93.3 12.6 mln 4.17 9.9 mln (2.6) Q3 2019 Q3 2021 Q2 2021 Q3 2021 Q3 2019 Q3 2021 31-Dec-20 30-Sep
Slide 4: Agenda
1. Market Update and Operating Results 2. Network and Schedule Overview 3. Fleet Overview 4. Financial Performance 5. Appendix 4
Slide 5: Overview of the Russian Market
Overview of the Russian Market Passenger Traffic: Market vs Aeroflot Group Key Market Players, 9M 2021 Russian Air Transportation Market (million PAX) Million PAX incl. PAX of Russian and Foreign Carriers and intl. transit PAX International Routes Domestic Routes (23.3)% 114.0 56.1% 34.1 23.1 (13.1)
Slide 6: Further Market Recovery in 2021
Further Market Recovery in 2021 Total Russian Civil Aviation Passenger Traffic Total Russian Civil Aviation Passenger Traffic Dynamics Million PAX % change vs. 2019 37% 14.0 29% 31% 28% 13.2 28% 12.3 3.3 12% 11.1 2.9 5% (0)% (2)% 3.4 (7)% 1.7 (12)% 8.8 (15)% (20)% (23)% (27)% (23)% (7)% (3)% (4)% 7.
Slide 7: Russian Domestic Market: Global Champion by Recovery Pace
Russian Domestic Market: Global Champion by Recovery Pace Russian domestic PAX started to grow from March 2021… … with PAX growth in various regions Domestic PAX, all vs. 2019 data Selected Russian Airport Statistics (PAX), September 2021 vs. 37% September 2019, %; million PAX served in 9M 2021 in b
Slide 8: Aeroflot Group Performance Across Different Brands
Aeroflot Group Performance Across Different Brands Brand and Business Model 9M 2021 PAX Contribution1 and Dynamics Oct 2021 PAX • Flagship carrier 36.8% +2.0x 46.6% • Premium product (4 Stars) 15.9 vs Oct’20 Premium 15.9 11.6 • High income and middle class -33.2% • Hub and spoke model 9M 2020 9M 202
Slide 9: Pobeda Airlines: A New Chapter
Pobeda Airlines: A New Chapter Pobeda Airlines Overview Total PAX and PLF dynamics mn PAX, change; PLF, % Growing 9M 2021 PAX numbers 41.9% vs. 9M 2020 and 9M 2019 +1.7x 10.8 million PAX 10.8 transported in 9M 2021 (+41.9% vs. 9M 2019) 7.6 6.3 94.0% PLF LF on par with pre-pandemic 2019 despite indus
Slide 10: Agenda
1. Market Update and Operating Results 2. Network and Schedule Overview 3. Fleet Overview 4. Financial Performance 5. Appendix 10
Slide 11: Aeroflot Group Capacity Recovery
Aeroflot Group Capacity Recovery Beginning of 2020 route network Stockholm Helsinki Oslo Murmansk Tallinn New Urengoy Arkhangelsk Riga Saint Petersburg Syktyvkar Khanty Mansiysk Yakutsk Surgut Nizhnevartovsk Copenhagen MOSCOW Nizhnekamsk Ekaterinburg Perm Magadan Hamburg Vilno Minsk MOSCOW Nizhny No
Slide 12: Aeroflot Leveraging Existing Market Opportunities
Aeroflot Leveraging Existing Market Opportunities Regional flight program Krasnoyarsk hub Leveraging international opportunities Direct flights connecting Six routes launched regional cities Operating extensive in summer 2021 including southern international flight program to domestic Black Sea reso
Slide 13: Aeroflot Group International Network
Aeroflot Group International Network Passenger traffic recovery notwithstanding bumpy international reopening Key Highlights thousand PAX1, quarterly data represents % of recovered traffic vs. respective period of 2019 37% of ’19 PAX Q3 ’21 1,052.91,067.1 Group Q3 2021 international 23% of ’19 PAX t
Slide 14: Aeroflot Group Scheduled Revenue Units
Aeroflot Group Scheduled Revenue Units Segment Scheduled Yield, RUB/RPK Scheduled RASK, RUB/ASK Total Q3’21 vs Q3’21 vs 9M’21 vs 9M’21 vs Q3’19 Q3’20 9M’19 9M’20 7.3% 24.4% 10.9% 19.3% 1.9% 27.2% 9.2% 33.4% 4.47 4.36 3.65 3.71 3.51 4.17 3.60 3.93 3.66 2.92 3.21 2.63 Q3 2019 Q3 2020 Q3 2021 9M 2019 9
Slide 15: Agenda
1. Market Update and Operating Results 2. Network and Schedule Overview 3. Fleet Overview 4. Financial Performance 5. Appendix 15
Slide 16: Fleet Update
Fleet Update Current Additions Fleet Plan Type of Fleet as at 9M 2021 Fleet as at Q4 2021 aircraft 31.12.2020 Delivery Phase out 30.09.2021 Delivery Phase out Wide-body (long-haul) 56 8 (3) 61 2 (2) A-330 17 - (3) 14 - (2) A-350 1 5 - 6 2 - B-777 29 3 - 32 - - B-747 9 - - 9 - - Narrow-body (medium-h
Slide 17: Agenda
1. Market Update and Operating Results 2. Network and Schedule Overview 3. Fleet Overview 4. Financial Performance 5. Appendix 17
Slide 18: Financial Highlights: Q3 2021
Financial Highlights: Q3 2021 Change ’21 Million RUB (where Change ’21 Change ’21 Q2 2021 Q3 2019 Q3 2020 Q3 2021 vs. ’19 applicable) vs. ’20 vs. ’19 11,187 (27.5)% Passenger Traffic (mln PAX) 18,533 10,129 15,557 1.5x (16.1)% 119,650 (31.0)% Revenue 212,543 84,861 167,072 2.0x (21.4)% 104,749 (31.3
Slide 19: Revenue Dynamics Decomposition
Revenue Dynamics Decomposition Revenue by Key Factors Revenue by Business Segments Million RUB Million RUB 3,601 1,356 38,603 121,025 2,025 362,220 (2,295) 362,220 16,884 74,815 234,213 234,213 1 9M 2020 Volume Currency Pricing Other 9M 2021 9M 2020 Scheduled Charter Cargo Other 9M 2021 Passenger Pa
Slide 20: Operating Costs
Operating Costs Operating Expenses Breakdown Change Change Operating Expense Change Change % of OpEx Q3 2020 Q3 2021 9M 2020 9M 2021 ’21 vs. ’20 ’21 vs. ’19 (RUB mln) ’21 vs. ’20 ’21 vs. ’19 (9M 2021) 18,077 42,840 2.4x (19.0)% Fuel 62,006 87,851 41.7% (39.6)% 24.8% 77,420 100,836 30.2% (10.5)% Opex
Slide 21: Group Unit Costs
Group Unit Costs Unit Costs Dynamics Q3 2020 Q3 2021 Change Operating Expense per ASK (CASK), RUB 9M 2020 9M 2021 Change 0.71 1.03 44.9 % Fuel 0.85 0.97 14.1 % 3.06 2.44 (20.3)% CASK (ex. Fuel): 3.13 2.93 (6.3)% 0.63 0.71 13.5 % Aircraft and Passenger Servicing 0.67 0.73 9.1 % 1.21 0.74 (39.0)% D&A
Slide 22: Fuel Cost Management
Fuel Cost Management Aeroflot Airline Jet Fuel Price Fuel Efficiency Thousand RUB per tonne of jet fuel (gramme / ASK) (2.6)% 50 22.9 22.3 45 43.9 40 42.5 9M 2020 9M 2021 35 36.2 30 Average fuel price per tonne 25 Aeroflot Airline: 20 • Q3 2021: 46.9 thd RUB (+57.4% yoy). Jan Feb Mar Apr May Jun Jul
Slide 23: Pobeda Financial Results
Pobeda Financial Results PAX Traffic and Other Operating Metrics Pobeda Statement of Profit and Loss Million PAX, dynamics y-o-y 10.8 Million RUB 9M 2020 9M 20213 Change 6.3 PAX +70.4% RPK +63.3% Revenue 28,487 52,667 84.9% ASK +61.2% 9M 2020 9M 2021 PLF +1.2 p.p. Operating Expenses 24,663 43,266 75
Slide 24: Leverage and Liquidity
Leverage and Liquidity Debt Profile1 Liquidity Billion RUB 31 December 30 June 30 Sep. September 265.9 Billion RUB 236.5 244.7 2020 2021 2021 vs. June, % 221.4 152.7 142.8 151.5 Borrowings 88.6 107.1 107.1 - 143.2 93.8 113.2 93.3 Lease Liabilities 662.5 674.6 676.0 0.2% 78.2 31-Dec-20 31-Mar-21 30-J
Slide 25: Agenda
1. Market Update and Operating Results 2. Network and Schedule Overview 3. Fleet Overview 4. Financial Performance 5. Appendix 25
Slide 26: Financial Highlights: 9M 2021
Financial Highlights: 9M 2021 Change ’21 vs. Change ’21 vs. Million RUB (where applicable) 9M 2019 9M 2020 9M 2021 ’20 ’19 Passenger Traffic (mln PAX) 46,728 23,056 34,114 48.0% (27.0)% Revenue 523,983 234,213 362,220 54.7% (30.9)% PAX Traffic Revenue 462,034 193,575 316,625 63.6% (31.5)% Operating
Slide 27: Operating Data – Q3 2021 vs Q3 2019
Operating Data – Q3 2021 vs Q3 2019 Indicators Aeroflot Pobeda Rossiya Aeroflot Group Change vs. Change vs. Change vs. Change vs. Q3 2021 Q3 2021 Q3 2021 Q3 2021 2019, % 2019, % 2019, % 2019, % Passenger Traffic th PAX 7,536 (29.2%) 4,360 44.6% 3,661 (15.7%) 15,557 (13.6%) International Routes th PA
Slide 28: Operating Data – 9M 2021 vs 9M 2019
Operating Data – 9M 2021 vs 9M 2019 Indicators Aeroflot Pobeda Rossiya Aeroflot Group Change vs. Change vs. Change vs. Change vs. 9M 2021 9M 2021 9M 2021 9M 2021 2019, % 2019, % 2019, % 2019, % Passenger Traffic th PAX 15,901 (44.1%) 10,757 41.9% 7,455 (21.0%) 34,114 (24.9%) International Routes th
Slide 29: 9M 2021 Operating Data by Region (Scheduled Routes)
9M 2021 Operating Data by Region (Scheduled Routes) Americas Russia CIS 161.4 % 144.1 % 133.7 % 66.9 % 68.3 % 55.7 % 43.7 % 45.8 % 48.0 % 10.1 p.p. 8.2 p.p. (4.5) p.p. Passengers RPK ASK PLF Passengers RPK ASK PLF Passengers RPK ASK PLF carried carried carried Europe Middle East and Africa Asia 81.2
Slide 30: Aeroflot Group Fleet Breakdown
Aeroflot Group Fleet Breakdown Aeroflot Group Fleet Overview Breakdown by Aircraft Operated by Total as of Total as of Change vs. Aircraft Type Wide-body Aeroflot Subsidiaries 30-Sep-21 31-Dec-20 31-Dec-20 17% Wide-body 42 19 61 56 5 Airbus A330 14 - 14 17 (3) Narrow- body Narrow- Airbus A350 6 - 6
Slide 31: Traffic Revenue Analysis – 9M 2021
Traffic Revenue Analysis – 9M 2021 Traffic Revenue Breakdown by Type Revenue from Scheduled Passengers (RUB mln)1 Scheduled 9M 2021 Passenger Flights 9M 9M Q3 2020 Q3 2021 Y-o-Y Region Y-o-Y % of sch. 89.0% 2020 2021 revenue 56,476 93,550 65.6% Russia 110,432 197,554 78.9% 65.8% 2,113 18,153 8.6x Eu
Slide 32: Aeroflot Group Blended Flights Revenue Units
Aeroflot Group Blended Flights Revenue Units RUB RUB 1.1% Q3 Yield (Scheduled + Charter 0.7% PAX Revenue / RPK) Q3 RASK (Scheduled + Charter PAX Revenue / ASK) 3.2% RUB / RPK RUB / ASK 2.6% 3.2% 5.86 6.01 4.50 4.36 25.3% 24.0% 19.4% 14.2% 3.66 4.36 3.31 3.77 3.52 2.92 3.30 2.77 Domestic Internationa
Slide 33: EBITDA Evolution
EBITDA Evolution Total effect on revenue Total effect on costs ∑=128,007 RUB mln ∑=(63,552) RUB mln Net volume and price effect Net FX effect Net volume and price effect ∑=111,123 RUB mln ∑=13,503 RUB mln ∑=(60,170) RUB mln 16,884 (3,381) (24,674) 38,603 (2,295) 1,465 (16,295) (3,981) 461 1,551 (18,
Slide 34: Operating and Free Cash Flows
Operating and Free Cash Flows 30,326 (3,451) 4,920 (11,708) (13,012) (11,209) 3,394 87,241 22,997 (17,633) 88,718 75,706 73,255 17,291 (18,610) Loss Before D&A Interest Unrealized Net Effect from Other Adj. Cash Flows Working Net Cash Purchase of Deposit Net Pre- Net Lease Free Cash Free Cash Income
Slide 35: Board of Directors
Board of Directors Corporate Governance Board of Directors Personnel and Audit Strategy Name Remuneration Committee Committee General Meeting of Audit Committee Committee Shareholders (3 members) Vitaly Saveliev Chairman Mikhail Poluboyarinov Personnel and Remuneration Maksut Shadayev Board of Direc
Slide 36: Aeroflot Group Structure
Aeroflot Group Structure PJSC Aeroflot Airlines JSC Rossiya Airlines 75%-1 sh. JSC Aeromar 51% On-board sales/catering LLC Pobeda Airlines 100% LLC Aeroflot-Finance 100% Financial services JSC Sherotel 100% Hotel services Aeroflot Aviation School 100% Education services LLC A-Technics 100% Maintenan
Slide 37: Investor Relations Contacts
Investor Relations Contacts Address: 119019, Russia, Moscow, Arbat St. 1 E-mail: ir@aeroflot.ru Website: www.aeroflot.ru
Aeroflot Group — Q3 and 9M 2021 Earnings Presentation on 6ix