Slide 1: Aeroflot Group Consolidated financials (IFRS) 6M2012
Aeroflot Group Consolidated financials (IFRS) 6M2012 Moscow September 5, 2012 Speaker: Shamil Kurmashov Deputy Director General Finance and investments
Slide 2: Table of contents
Table of contents 1.Introduction 2.Market position of the Group 3.Operating highlights 4.Financial results 5.Conclusions 6.Appendix 2
Slide 3: Awards and ratings
Awards and ratings AEROFLOT WAS AWARDED “WINGS OF RUSSIA” AWARDS IN TWO LEADING NOMINATIONS. The Company became a prize winner of “Wings of Russia – 2011” in two leading nominations: “Airline of the year – passenger carrier on domestic routes in Group I” and “Airline of the year – passenger carrier
Slide 4: Table of contents
Table of contents 1.Introduction 2.Market position of the Group 3.Operating highlights 4.Financial results 5.Conclusions 6.Appendix 4
Slide 5: Russian air transportation market
Russian air transportation market Passenger traffic of the Russian civil aviation 38,1% [mln. pax.] 37,8% 25,6% * Source: TCH, Ministry of Transportation RCA Aeroflot Group Aeroflot Group market share in RCA * Including passenger traffic of integrated companies from 15.11.2011 to 31.12.2011 Market s
Slide 6: Market position of the Group in the first 6 months of 2012
Market position of the Group in the first 6 months of 2012 Passenger traffic [mln.pax.] Passenger turnover [bln.pkm.] Source: TCH Share in RCA Growth rates of basic operating indicators [%, 6m2012 to 6m2011] Source: TCH, Aeroflot estimates * Proforma including the results of OJSC “Rossiya airlines”,
Slide 7: Table of contents
Table of contents 1.Introduction 2.Market position of the Group 3.Operating highlights 4.Financial results 5.Conclusions 6.Appendix 7
Slide 8: Route network efficiency of JSC Aeroflot
Route network efficiency of JSC “Aeroflot” in the first 6 months of 2012 Flights dynamics by region [%] Average week frequency per route Type 6m2011 6m2012 Change Scheduled 9,88 11,05 12% Charter 0,3 0,49 63% IAL Scheduled 7,99 8,7 9% DAL Scheduled 15,43 17,54 14% Medium-haul* 11,15 12,86 15% Long-h
Slide 9: Fleet of the Group as of 30.06.12
Fleet of the Group as of 30.06.12 Type of aircraft Aeroflot Donavia Rossiya Orenair Vladivostok SAT Airlines Total Airlines Avia Ilyushin Il-96-300 6 6 Tupolev Tu-154 5* 4* 1* 10 # Antonov An-24 2* 6 8 Antonov An-26 1* 1 Tupolev Tu-134 8* 8 Mil Mi-8 3 1 4 Yakovlev Yak-40 2 2 Total number of a/c owne
Slide 10: Order and phase off plan of JSC Aeroflot
Order and phase off plan of JSC “Aeroflot” Delivery schedule in accordance with contracts in force Type of aircraft 2012 2013 2014 2015 Regional - - - - SSJ-100 10 6 10 - Medium-haul - - - - A-320 1 3 2 - A-321 3 5 - - Long-haul - - - - A-330 8 - - - B-777 - 4 6 3 B-787 - - 8 8 TOTAL 22 18 26 11 Pha
Slide 11: JSC Aeroflot aircraft fuel efficiency and fuel expenses
JSC “Aeroflot” aircraft fuel efficiency and fuel expenses Flight Hours [ths. hrs] Specific fuel consumption [gr/tkm] Weighted average fuel price [$/tonne] • Downward trend in jet fuel prices which started in May will have a positive impact on profitability of air carriage of Aeroflot Group in the se
Slide 12: Headcount and labor productivity
Headcount and labor productivity Headcount 31.12.11 30.06.12 Change Aeroflot 15 500 15 770 2% Aeromar 2 288 2 838 24% Rossiya airlines 3 312 3 384 2% ORENAIR 2 227 2 267 2% Vladivostok Air 2 180 2 049 -6% SAT Airlines 785 784 0% Donavia 1 234 1 114 -10% Aerofirst 632 659 4% Sherotel 276 261 -5% Aero
Slide 13: Operating indicators of Aeroflot Group
Operating indicators of Aeroflot Group Passenger traffic Passenger turnover [ths.pax.] [mln.pkm.] Seat load factor Passenger capacity [%] [mln.ask.] 2010 2011 2011* 2012 * Proforma including results of integrated companies • The majority of operating indicators of the Group exceed prior year figures
Slide 14: Revenue rates
Revenue rates Yield: PAX revenue / RPK RASK: PAX revenue / ASK Cargo yield: Cargo revenue / CTK [US cents / pkm.] [US cents / ask.] [US cents / tkm.] +4% +1% +7% +2% +6% +1% Yield of the Group RASK of the Group Cargo yield of the Group [US cents / pkm.] [US cents / pkm.] [US cents / pkm.] +10% -1% +
Slide 15: JSC Aeroflot operating indicators
JSC “Aeroflot” operating indicators dynamics by region [%, 6m2012 vs 6m2011] • Following the approved strategy of strengthening positions on domestic routes and popular tourist destinations, Aeroflot significantly increased its long-haul transportation capacities. The largest growth was demonstrated
Slide 16: Traffic revenue of Aeroflot Group from scheduled flights by region (proforma)
Traffic revenue of Aeroflot Group from scheduled flights by region (proforma) Revenue from scheduled passengers carriages Revenue from scheduled cargo carriages [$ mln.] [$ mln.] +29% +29% * Proforma including the results of integrated companies OJSC “Rossiya airlines”, JSC “SAT Airlines”, JSC “OREN
Slide 17: Table of contents
Table of contents 1.Introduction 2.Market position of the Group 3.Operating highlights 4.Financial results 5.Conclusions 6.Appendix 17
Slide 18: Key financials
Key financials JSC “Aeroflot” Aeroflot Group Index unit 6м2011 6м2012 change 6м2011 6м2012 change Revenue $ mln. 2 108 2 639 25% 2 344 3 614 54% Operating costs $ mln. 1 858 2 446 32% 2 139 3 516 64% EBITDAR* $ mln. 499 478 -4% 501 516 3% EBITDA** $ mln. 344 300 -13% 331 247 -25% Operating income $
Slide 19: Group's revenue factorial analysis
Group’s revenue factorial analysis Revenue of the Group [$ mln] Air carriage Traffic Others tariff volume 62 36 1 172 2 996 Passenger traffic + 65% 1 812 813 Freight traffic + 44% 116 167 416 Other income + 8% 451 452 6m2011 6m2012 Σ 2 344 Total revenue of the Group + 54% Σ 3 614 The substantial inc
Slide 20: Structure of the Group's net income
Structure of the Group’s net income Elements of Aeroflot Group’s net income [$ mln] ∑= -$112 mln. 12 * * Income of Aeroflot-Cargo from sale of the trademark to Aeroflot has been eliminated. ^ Including income from sale of stakes in OJSC “Rossiya airlines”, JSC “SAT Airlines”, JSC “ORENAIR” to JSC “A
Slide 21: Factorial analysis of the Group's net income
Factorial analysis of the Group’s net income Adjustments to the Group’s net income [$ mln] 780 1270 1377 100 * Including income from disposal of investments in subsidiaries and affiliates and result from deconsolidation of accumulated loss • Substantial increase in revenue and operating costs of the
Slide 22: Factorial analysis of the net income of JSC Aeroflot
Factorial analysis of the net income of JSC “Aeroflot Adjustments to the net income of JSC “Aeroflot” [$ mln] 367 * Income from disposal of investments in subsidiaries and affiliates in the first six months of 2011 including CJSC “Nordavia”, "Moscow" Insurance Company" and "TZK "Sheremetyevo" • The
Slide 23: Operating income of the main subsidiaries
Operating income of the main subsidiaries Operating income / loss of the subsidiaries [$ mln] 6 months of 2011 6 months of 2012 • OJSC “Rossiya airlines”, JSC “ORENAIR”, JSC ”Vladivostok Air” registered operating losses for the first 6 months of 2012. • Donavia lowered operating loss from $18,8 mln.
Slide 24: Debt leverage of Aeroflot Group
Debt leverage of Aeroflot Group JSC “Aeroflot” Aeroflot Group Indicators unit 31.12.11 30.06.12 change 31.12.11 30.06.12 change Borrowings $ mln. 513 372 -27% 767 565 -26% Finance lease liabilities $ mln. 897 948 6% 1 500 1 551 3% Pension liabilities $ mln. 12 13 8% 12 13 8% Customs duties $ mln. 2
Slide 25: Aeroflot Group in comparison with foreign competitors
Aeroflot Group in comparison with foreign competitors Группа Аэрофлот Deutsche Lufthansa Air France-KLM Indicators unit 6m2011* 6m2012* change 6m2011* 6m2012* change 6m2011* 6m2012* change Financial indicators Revenue $ mln. 2 344 3 614 54% 19 791 18 824 -5% 16 246 15 757 -3% EBITDA** $ mln. 312 225
Slide 26: Table of contents
Table of contents 1.Introduction 2.Market position of the Group 3.Operating highlights 4.Financial results 5.Conclusions 6.Appendix 26
Slide 27: Conclusions
Conclusions • In the first 6 months of 2012 the main operating indicators increased compared to the corresponding period of previous year. • Passenger traffic increased 69% due to optimization of Aeroflot route network and consolidation of OJSC “Rossiya airlines”, JSC “SAT Airlines”, JSC “ORENAIR”,
Slide 28: Table of contents
Table of contents 1.Introduction 2.Market position of the Group 3.Operating highlights 4.Financial results 5.Conclusions 6.Appendix 28
Slide 29: Key operating indicators of subsidiary airlines
Key operating indicators of subsidiary airlines Passenger traffic [th. pax.] Passenger turnover [mln. pkm.] Flight hours [th. hrs] Seat load factor [%] 6 months of 2011 6 months of 2012 In the first 6 months of 2012 all subsidiaries except SAT Airlines showed increase in passenger traffic. Increase
Slide 30: Key operating indicators of subsidiary airlines
Key operating indicators of subsidiary airlines Rossiya Vladivostok SAT Indicator Period ORENAIR Donavia Total airlines Air Airlines Factual data for 6m2012 1 858 1 163 540 118 466 4 145 Passenger traffic (th. pax) Factual data for 6m2011 1 485 1 018 532 132 312 3 479 Change, % 25% 14% 2% -11% 49% 1
Slide 31: Operating indicators
Operating indicators JSC “Aeroflot” Aeroflot Group Indicator Unit 6m2011 6m2012 change 6m2011 6m2012 change Passenger turnover mln. pkm 18 852 22 619 20% 20 174 32 682 62% International routes 13 236 15 564 18% 13 590 21 736 60% Domestic routes 5 616 7 055 26% 6 584 10 946 66% Passenger capacity mln