Aeroflot · RUS:AFLT
Aeroflot — Q1 2021 Earnings Presentation
37 slides from Aeroflot's earnings presentation, Jun 1, 2021
Slide 1: Aeroflot Group Q1 2021 IFRS Results
AEROFLOT GROUP Q 1 2 0 2 1 I F R S R E S U LT S 1 June 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 Q1 2021 Highlights
Aeroflot Group Q1 2021 Highlights Strong domestic traffic1 Yield growth2 Improving CFO3 Cash reserves4 Million PAX RUB/RPK Billion RUB Billion RUB (0.1)% +7.5% +16.0% 6.5 mln 3.99 16.0 93.8 13.8 78.2 3.72 6.5 mln Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 31-Dec-20 31-Mar-21 Note: immaterial de
Slide 4: Market Update and Operating Results
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, Q1 2021 Russian Air Transportation Market (million PAX) Million PAX incl. PAX of Russian and Foreign Carriers and intl. transit PAX International Routes Domestic Routes (37,1)% 7.4 (32,3)% 3.6 3.5 28.1 26.
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 12% 6% 7% 5% 9.3 8.8 (7)% 0.8 (16)% (15)% (0)% (2)% 1.3 (23)% 7.2 (23)% 6.8 6.8 (32)% (33)% 6.5 (35)% 1.0 (39)% (43)% (27)% 1.2 5.5 0.9
Slide 7: Aeroflot Group Performance Across Different Brands
Aeroflot Group Performance Across Different Brands Brand and Business Model Q1 2021 PAX Contribution1 and Dynamics April 2021 PAX • Flagship carrier (52.8)% 44.4% +9.3x • Premium product (4 Stars) vs Apr’20 6.9 Premium 3.3 3.3 • High income and middle class (55.1)% • Hub and spoke model Q1 2020 Q1 2
Slide 8: Pobeda Airlines: A New Chapter
Pobeda Airlines: A New Chapter Overview Total PAX and PLF dynamics mn PAX, change y-o-y; PLF, % Growing Q1 2021 PAX numbers 10.5% vs. Q1 2020 and Q1 2019 22.2% 45.5% 2.8 2.5 2.8 mm PAX 2.0 transported in Q1 2021 (+10.5% y-o-y) 92.2% PLF LF remains high despite ongoing pressure Q1 2019 Q1 2020 Q1 202
Slide 9: Network and Schedule Overview
1. Market Update and Operating Results 2. Network and Schedule Overview 3. Fleet Overview 4. Financial Performance 5. Appendix 9
Slide 10: Aeroflot Group Network: Q1 2021 Update
Aeroflot Group Network: Q1 2021 Update 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 Niz
Slide 11: Capacity and PLF: 2021 vs 2019
Capacity and PLF: 2021 vs 2019 Domestic International Total ASK vs 2019 2020 2021 2020 2021 2020 2021 4 p.p. 5 p.p. 4 p.p. (4) p.p. (10) p.p. (8) p.p. (6) p.p. 1 p.p. 2 p.p. 3 p.p. (7) p.p. (8) p.p.(2) p.p. (2) p.p. (14) p.p. (7) p.p. (5) p.p. (7) p.p. (2) p.p. (3) p.p. (11) p.p. 78% 73% 77% 81% 83%
Slide 12: Aeroflot Summer Regional Program
Aeroflot Summer Regional Program Regional flight program Key highlights of regional program Murmansk Direct flights from 13 regional cities to domestic Black Sea resorts starting from May 24, 2021 Arkhangelsk 39 city-pairs with varied frequencies from several flights per week to daily Syktyvkar Surg
Slide 13: Aeroflot International Network Adjustments
Aeroflot International Network Adjustments Gradual reopening of international network… …Supports passenger traffic recovery since August Aeroflot Airlines, number of one-way weekly flights (selected) Aeroflot Airline, thousand PAX 320.1 Aug Dec Apr Mar 284.3 Destination vs vs vs 20 20 21 20 196.3 21
Slide 14: Aeroflot Group Revenue Units vs Q1'20 and Q1'19
Aeroflot Group Revenue Units vs Q1’20 and Q1’19 Segment Q1 Scheduled Yield, RUB Q1 Scheduled RASK, RUB Total Q1’21/Q1’19 Q1’21/Q1’20 change change 10.9% 7.5% 15.0% 22.3% (3.8%) (3.9%) Domestic 1.9% 12.2% International 87.3% 76.4% 68.9% 74.6% Yields and RASK demonstrated solid improving performance b
Slide 15: Fleet Overview
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 Actual and expected additions Fleet Plans Type of Fleet as at 3M 2021 Fleet as at Q2-Q4 2021 aircraft 31.12.2020 Delivery Phase out 31.03.2021 Delivery Phase out Wide-body (long-haul) 56 1 (2) 55 9 (3) A-330 17 - (2) 15 - (3) A-350 1 - - 1 7 - B-777 29 1 - 30 2 - B-747 9 - - 9 - - Narro
Slide 17: Financial Performance
1. Market Update and Operating Results 2. Network and Schedule Overview 3. Fleet Overview 4. Financial Performance 5. Appendix 17
Slide 18: Financial Highlights: Q1 2021 vs Q4 2020
Financial Highlights: Q1 2021 vs Q4 2020 Q4 2020 Change y-o-y Million RUB (where applicable) Q1 2020 Q1 2021 Change 7,100 (49.2)% Passenger Traffic (mln PAX) 11,196 7,371 (34.2%) 67,969 (55.8)% Revenue 123,894 75,498 (39.1)% 50,133 (62.2)% PAX Traffic Revenue 106,608 60,307 (43.4)% 103,367 (33.3)% O
Slide 19: Revenue Dynamics Decomposition
Revenue Dynamics Decomposition Revenue by Key Factors Revenue by Business Segments Million RUB Million RUB 123,894 (48,925) 123,894 (43,178) 5,103 1,760 (6,334) (3,123) 3,155 (5,250) 75,498 75,498 Q1 2020 Volume Currency Pricing Other1 Q1 2021 Q1 2020 Scheduled Charter Cargo Other Q1 2021 1 Other re
Slide 20: Operating Costs
Operating Costs Operating Expenses Breakdown Change Operating Expense Change Change % of OpEx Q4 2020 Q1 2020 Q1 2021 y-o-y (RUB mln) y-o-y ex. FX (Q1 2021) 15,451 (65.9)% Fuel 38,604 16,816 (56.4)% (57.9)% 17.5% 87,916 (19.8)% Opex (ex. Fuel) 98,446 79,354 (19.4)% (23.5)% 82.5% 14,783 (51.3)% Aircr
Slide 21: Group Unit Costs
Group Unit Costs Unit Costs Dynamics Capacity: ASK adjustment Billion ASK Operating Expense per ASK (CASK), RUB Q1 2020 Q1 2021 Change (53.3)% Fuel 0.94 0.88 (6.5)% CASK (ex. Fuel): 2.41 4.17 73.0% 40.8 Aircraft and Passenger Servicing 0.67 0.82 21.7% D&A and Customs Duties 0.64 1.49 2.3x Staff 0.52
Slide 22: Fuel Cost Management
Fuel Cost Management Aeroflot Airline Jet Fuel Price Fuel Efficiency: Mix Effect Thousand RUB per tonne of jet fuel (gramme / ASK) 9.0% 50 24.1 22.1 45 43.8 40 41.4 35 Q1 2020 Q1 2021 35.9 30 Average fuel price per tonne 25 Aeroflot Airline: 20 • Q4 2020: 31.5 thd RUB (-28.1% yoy). Jan Feb Mar Apr M
Slide 23: Pobeda Financial Results
Pobeda Financial Results PAX Traffic and Other Operating Metrics Pobeda Statement of Profit and Loss (IFRS) Million PAX, dynamics y-o-y 2.5 2.8 Million RUB Q1 2020 Q1 2021 Change PAX +11% RPK +2% Revenue 11,114 11,227 1.0% ASK +1% Q1 2020 Q1 2021 PLF +1.0 p.p. Operating Expenses 10,450 10,428 (0.2)%
Slide 24: Leverage and Liquidity
Leverage and Liquidity Debt Profile1 Liquidity Billion RUB 236.5 221.4 Million RUB 31-Dec-2020 31-Mar-2021 Change 191.1 157.1 142.8 143.2 Borrowings 88,635 88,690 0.1% 148.0 108.4 93.8 78.2 Lease Liabilities 662,507 664,239 0.3% 48.7 43.1 30-Jun-2020 30-Sep-2020 31-Dec-2020 31-Mar-2021 Cash and ST i
Slide 25: Improved Bookings Generate More Cash
Improved Bookings Generate More Cash Recovery of Number of Weekly Bookings (SU code) Unearned traffic revenue (bn RUB) Unearned traffic revenue includes proceeds from ticket sales, that will be recognized as revenue once flight service is delivered. 1,000 thd 25.7 RUB bn 16.9 800 thd 75.6 RUB bn (6.
Slide 26: Operating Cash Flows and Lease Payments
Operating Cash Flows and Lease Payments Reduced monthly costs Operating Cash Flow Billion RUB, monthly average, includes Billion RUB OPEX and net finance costs Working Capital changes and other CFO before changes in working capital (30)% 13.8 bn RUB 16.0 bn RUB 49.0 6.7 18.3 34.4 11.9 8.7 9.3 0.1 1.
Slide 27: Appendix
1. Market Update and Operating Results 2. Network and Schedule Overview 3. Fleet Overview 4. Financial Performance 5. Appendix 27
Slide 28: Operating Data – Q1 2021
Operating Data – Q1 2021 Indicators Aeroflot Pobeda Rossiya Aeroflot Group Q1 2021 Y-o-Y Q1 2021 Y-o-Y Q1 2021 Y-o-Y Q1 2021 Y-o-Y Passenger Traffic th PAX 3,270 (52.8%) 2,755 10.5% 1,345 (9.8%) 7,371 (32.5%) International Routes th PAX 677 (80.3%) 161 (64.1%) 68 (87.9%) 905 (79.6%) Domestic Routes
Slide 29: Q1 2021 Operating Data by Region (Scheduled Routes)
Q1 2021 Operating Data by Region (Scheduled Routes) Americas Russia CIS (9.4) p.p. (3.4) p.p. 11.9 p.p. (3.5)% (2.6)% (51.0)% (48.4)% (67.8)% (57.0)% (72.1)% (72.0)% (16.6)% Passengers RPK ASK PLF Passengers RPK ASK PLF Passengers RPK ASK PLF carried carried carried Europe Middle East Asia (6.2) p.p
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 31-Mar-21 31-Dec-20 31-Dec-20 16% Wide-body 36 19 55 56 (1) Airbus A330 15 - 15 17 (2) Narrow- body (regional) Narrow- Airbu
Slide 31: Traffic Revenue Analysis – Q1 2021
Traffic Revenue Analysis – Q1 2021 Traffic Revenue Breakdown by Type Revenue from Scheduled Passengers (RUB mln)1 Sheduled Passenger Flights Q1 2021 86.3% Region Q1 2020 Q1 2021 Y-o-Y % of sch. revenue Russia 41,438 38,783 (6.4)% 65.8% Europe 25,208 3,065 (87.8)% 5.2% Cargo 11.7% Asia 20,287 5,170 (
Slide 32: Aeroflot Group Blended Flights Revenue Units
Aeroflot Group Blended Flights Revenue Units RUB RUB 1.1% Q1 Yield (Scheduled + Charter 0.7% PAX Revenue / RPK) Q1 RASK (Scheduled + Charter PAX Revenue / ASK) RUB / RPK 74.9% RUB / ASK 71.5% 6.76 4.69 21.4% 3.17 7.8% 10.9% 3.96 2.71 2.73 (4.8)% 3.87 2.61 3.67 2.44 3.41 3.25 Domestic International T
Slide 33: EBITDA Evolution
EBITDA Evolution Total effect on revenue Total effect on costs ∑=(48,396) RUB mln ∑=43,050 RUB mln Net volume and price effect Net FX effect Net volume and price effect ∑=(53,499) RUB mln ∑=3,216 RUB mln ∑=44,937 RUB mln (48,925) 2,091 (3,207) 3,785 13,054 12,697 755 7,708 6,459 22,358 1,760 (6,334)
Slide 34: Operating and Free Cash Flows
Operating and Free Cash Flows 9,309 (3,572) (4,769) 2,283 (2,892) 2,523 2,414 9,722 (362) 16,024 12,489 10,197 6,715 28,275 (30,442) 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 Tax Expens
Slide 35: Board of Directors
Board of Directors Corporate Governance Board of Directors Personnel and Audit Strategy Name Remuneration General Meeting of Audit Committee Committee 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 Ancillary Companies 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-Tec
Slide 37: Investor Relations Contacts
Investor Relations Contacts Address: 119019, Russia, Moscow, Arbat St. 1 E-mail: ir@aeroflot.ru Website: www.aeroflot.ru