The annual General meeting of shareholders of JSC “AEROFLOT”

26 June 2012

June 25, 2012, Moscow – The Annual General Meeting of Shareholders of JSC “Aeroflot – Russian airlines” has been held today.

Russia’s leading carrier managed to turn to good advantage favorable opportunities for dynamic development and strengthening market position in 2011. Amid fiercer competition in air carriage sector Aeroflot reached a record in traffic figures growth, which is outlined in Company’s Annual Report: during the last year Aeroflot carried 14.17 mln. passengers – the highest number in Company’s history as a Russian carrier. Taking into account the total contribution of Company’s subsidiaries, which are now consolidated into Aeroflot Group, passenger traffic exceeded 20 mln passengers.

Having completed more than 122 thousand scheduled and charter flights, JSC “Aeroflot” passenger turnover amounted to 42 bln. passenger-kilometers and 4.7 bln. tonne-kilometers. Passenger turnover increased by 20.8%, revenue tonne-kilometers – by 14.9%, amount of passengers carried – by unprecedented 25.6%.

Substantial increase in revenue was achieved with Company’s revenue amounting to 135.8 bln. RUB in 2011 – 20.6% higher in comparison to the result of 2010 (in accordance with RAS). Despite negative influence of higher oil and jet fuel prices on the entire air carrier industry, JSC “Aeroflot” maintains high financial stability and profitability. Gross profit of JSC “Aeroflot” for 12 months 2011 amounted to 24.7 bln. RUB (RAS), profit before tax reached 13.8 bln. RUB (RAS), Net income was 10.4 bln RUB (RAS). Net income of Aeroflot Group in accordance with IFRS amounted to 491 mln. USD, 94% growth in comparison to the result of 2010. In March 2012 International Rating Agency “Fitch” has affirmed credit rating of JSC “Aeroflot” at BB+ level with Stable outlook for the third time.

In 2011 a number of former aviation assets of State Corporation “Russian Technologies” were transferred to Aeroflot. Development strategy of Aeroflot Group was approved, the Group was the first in Russia to move to a brand new development stage – multibrand model.

Last year Aeroflot increased flight frequency and the number of destinations. The highest growth dynamics in the number of flights was registered on CIS and Russian destinations – segment, which is prioritized by the Company. In 2011 flight network was expanded by scheduled flights from Moscow to Nizhni Novgorod, Mineralnye Vody, Surgut, Minsk, Colombo (Sri-Lanka), Cancun (Mexico), Dubrovnik (Croatia), Ho Chi Minh City, (Vietnam), Tivat (Montenegro). Charter flights program was developed not only from Moscow, but from Saint-Petersburg, Volgograd, Ekaterinburg, Samara.

Program for development and modernization of Aeroflot fleet allows the Company to gain new positions in the market. In 2011 Company received 16 new aircraft: 8 medium-haul Airbus A320, 4 long-haul Airbus A330, 4 short-haul new generation national aircraft Sukhoi SuperJet-100. Simultaneously the issue of personnel training, which is required by the expanding fleet – the youngest and the most modern fleet in Russia and one of the most technically developed in Europe, has been handled. In 2011 Aeroflot Aviation School was opened in order to organize training for 120 aviation professions.

JSC “Aeroflot” remains one of the safest carriers in the industry. In 2011 safety level of Company’s flights amounted to 99.978%, which is included in high value range. In order to provide high comfort and safety level for passengers in case of crisis and failure situations, Aeroflot Situational Center was opened, created with the help of the most innovative solutions, which has no equivalents in Russian Civil Aviation.

2011 was named “Year of the Passenger” in Aeroflot: the Company realized a number of programs and initiatives aimed at broadening the services range and services quality enhancement. According to a research conducted by Bain & Company index of consumer loyalty NPS of Aeroflot in 2011 amounted to 52% which is 8% higher than in 2010 and much higher than the leading carriers of Russia, Europe and USA.

Program for innovative development of Aeroflot was developed and integrated into global strategy of the Company. Higher R&D investments which will exceed 700 mln. RUB by 2020 are planned in terms of this program. The process of active implementation of innovations is applied in all companies of Aeroflot Group.

In 2011 extensive use of new technologies in all areas of operations was continued. SAP ERP information system implementation project was completed, program for equipping the aircraft with mobile communication and wireless Internet was extended (one more Airbus A320 with this innovative service has been placed in operation), Aeroflot website functions were extended, Company’s presence in social networks was expanded.

The Annual General Meeting of Shareholders of JSC “Aeroflot – Russian airlines” approved the Annual Report of the Company, annual financial statements of the Company including the profit and loss statement (RAS) and endorsed Board of Directors’ recommendations regarding net income (RAS) distribution. According to the Revision Committee decision the financial statements of the Company (RAS) and JSC “Aeroflot” Annual Report for 2011 were acknowledged to be trustworthy. The Meeting approved the new Revision Committee composition. JSC “BDO” passed the tender procedures and was nominated as a statutory auditor for 2012.

The Annual General Meeting of Shareholders approved the decision to pay out 2 bln. RUB (19.2% of net income in accordance with RAS) in the form of dividend following the results of 2011 fiscal year. The dividend in the amount of 1.8081 RUB per share (66% higher than in 2010) was approved with payments in the period from 26.06.2012 to 24.08.2012.

The new Board of Directors of JSC “Aeroflot” composed of the following 11 candidates was approved:

Aleksashenko Sergey Vladimirovich – Director for Macroeconomic Research, National Research University “Higher School of Economics”;

Androsov Kirill Gennadevich - Member of the Board of Directors of the Investment Company “Altera Capital”;

Germanovitch Alexey Andreevitch – Director of State Sphere Programs of the Moscow Management School “Skolkovo”;

Kogan Igor Vladimirovitch – Chairman of the Supervisory Council of the Nonprofit Partnership “Interbank Settlement System”;

Lozevsky Igor Arnoldovitch – Chief Executive Director of the Group “Deutsche Bank” in Russia and CIS;

Navalny Alexey Anayolievitch – Lawyer of the Moscow College of Lawyers “Mezregion”;

Nikitin Gleb SergeevichDeputy head of Federal Agency for Management of State Property;

Saveliev Vitaly Gennadevich – Chief executive officer of JSC “Aeroflot”;

Saprykin Dmitry Petrovich – JSC “Aeroflot” deputy CEO for legal and property affairs;

Tikhonov Aleksandr Vasilevich – Ministry of Transportation department director;

Chemezov Sergey Viktorovich – Chief executive officer of State Corporation “Russian Technologies”;

 

The new Revision Committee of JSC “Aeroflot” composed of the following 5 candidates was approved:

Belikov Igor Viacheslavovitch – Director, Nonprofit Partnership “Russian Institute of Directors”;

Dyemina Marina Kimovna – Deputy Director of the Internal Audit Department of JSC “Aeroflot”;

Mironova Vera Grigorievna – Head of Finance Support, Budget Planning and Reporting of the Federal Agency of air Transport (Rosaviatsia);

Pakhomov Sergey Alexandrovitch – Head, Supervision in the Area of Urban Construction and Land-property Relations Administration of the Moscow Control Commission of the Government of Moscow;

Uchenov Alexey Alexandrovitch – Deputy Head, Department of the Federal Agency for Management of State-owned Property (Rosimuschesvo).

 

Aeroflot - Russia’s leading air carrier, member of the global SkyTeam alliance with a consolidated route network covering 950 destinations in 173 countries. In 2011 Aeroflot carried more than 14 million passengers.

Aeroflot is one of the most fast-growing airlines in the world according to SkyTrax. Besides company got the prestigious international SkyTrax World Airline Awards as "The best Eastern European Airline".

Aeroflot is the one of the world top 25 airlines ranked by for financial and economic results according to Air Transport World magazine (“operating profit” and “net profit” category) in 2010.

Aeroflot is the first Russian carrier that has entered the IOSA Registry, and to have regularly confirmed the certificate. Aeroflot has successfully passed the ISAGO (IATA Safety Audit for Ground Operations) procedure. The Company’s Quality Management System is certified for compliance with ISO 9001:2008.

Aeroflot is the General partner of XXII Winter Olympic Games and XI Winter Paralympic Games in Sochi 2014 in “Passenger carriage” category.

Aeroflot operates one of Europe’s youngest air fleet that consists of 120 aircraft. Aeroflot is located in Sheremetyevo International Airport, Moscow. Find more at www.aeroflot.ru.