Moscow, 5 July 2018 – PJSC Aeroflot (Moscow Exchange ticker: AFLT) announces the results of the meeting of its Board of Directors held on 5 July 2018.
The meeting was the first following the election of the new Board of Directors at the Annual General Meeting of shareholders on 25 June 2018. Mikhail I. Poluboyarinov, First Deputy Chairman and Member of the Management Board at Vnesheconombank, was re-elected as Chairman of the PJSC Aeroflot Board of Directors. Mr. Poluboyarinov was first elected Chairman of the Board in 2017.
Alexei V. Melyokhin, Head of Aeroflot’s Corporate Governance Department, was reappointed as executive secretary of the Board of Directors, a post he has held since 2011.
The work of the Board of Directors of PJSC Aeroflot was examined and its organisational procedure was determined. Key issues related to the Board of Directors’ work plan for the period July 2018 to June 2019 were approved.
The membership and chairpersons of the three Board committees, the Audit Committee, the Personnel & Remuneration Committee and the Strategy Committee, were elected. Independent director Vasily V. Sidorov will chair the Audit Committee, independent director Igor A. Kamenskoy will chair the Personnel & Remuneration Committee and Roman V. Pakhomov will chair the Strategy Committee.
The following agenda items were also addressed:
The results of the implementation of Aeroflot Group’s consolidated budget for the first quarter of 2018. Traffic across the Russian civil aviation market, including foreign airlines, stood at 25.6 million passengers in the first quarter of 2018. Aeroflot Group’s share of the market was 43.0%. The growth rate of the Group’s key operational indicators for the period was in line with growth rates of international peers. The total debt/EBITDA ratio for the Group was the lowest amongst key competitors.
The PJSC Aeroflot Auditor Report on the Group’s IFRS financial statements for the first quarter of the 2018 financial year. As was noted in the report by the auditor PwC, the review found no indication that the condensed consolidated interim financial statements were not prepared in compliance in all material respects with International Accounting Standard (IAS) 34, “Interim Financial Reporting”.
Implementation of Aeroflot Group’s Long-Term Development Programme and the achievement of key performance indicators (KPI) for the first quarter of 2018. Aeroflot Group’s Long-Term Development Programme was successfully implemented, whilst KPI targets were exceeded. Amongst these indicators are on-time flight performance, passenger load factor and labour productivity. The key planned activities aimed at achieving Aeroflot Group’s strategic development goals – including expansion of the route network, growth of the fleet and increasing the Group’s production base along with improved labour productivity and the reduction of operating costs – were successfully carried out.
PJSC Aeroflot’s Incentive programme. The results of the KPIs under the Aeroflot Group Long-Term Development Programme and those of Aeroflot’s Chief Executive Officer were approved for the first quarter of 2018. It was noted that KPIs were exceeded thanks to implementation of efficiency measures.