Aeroflot announces the results of Board of directors meeting

PJSC Aeroflot (MOEX ticker: AFLT) announces the results of a regular meeting of the Board of Directors which was held on December 22, 2016. The meeting was chaired by Kirill Androsov.

The meeting agenda included the following items:

Aeroflot Group’s consolidated budget indicators for 9M of 2016. In 9M of 2016 Aeroflot Group (“the Group”) increased its market share. Total Russian passenger traffic in 9M of 2016, including passengers of international carriers, amounted to 78.7 million. The share of passengers carried by Aeroflot Group increased by 5.0 percentage points (p.p.) year-on-year to 41.7%. Aeroflot airline’s and the Group’s passenger plans were fulfilled by 100.2% and 100.5%, respectively. Group revenue amounted to RUB 381.3 billion, an increase of 23% year-on-year. Net income increased to RUB 43.8 billion. The Group’s Total debt/EBITDA ratio decreased. In 3Q 2016 key performance indicators (KPIs) of the Aeroflot Group Long-term Development Programme, and those of the PJSC Aeroflot CEO, were achieved.

Implementation of Aeroflot Group’s Long-term Development Programme (as of the end of 9M of 2016).
The drafting and quarterly review of a report regarding the implementation of the Long-term Development Programme (LDP) is mandated by the Government of the Russian Federation and the Board of Directors. Aeroflot Group’s LDP is being implemented efficiently; major items of the programme have already been implemented. Key development objectives have been achieved, which delivered growth across PJSC Aeroflot’s key operating results.

The Board of Directors approved the report as well as changes proposed for inclusion in the updated Aeroflot Group LDP for 2016-2021, specifically:

– an update to Aeroflot Group’s investment plan for 2016-2017;

– an update of the list of PJSC Aeroflot’s key 2017 investment projects;

– an update of the list and weighting of Aeroflot Group’s KPIs for 2017-2021.

On the implementation of provisions of the Corporate Governance Code. Progress on implementation of key objectives outlined in PJSC Aeroflot’s Corporate Governance improvement roadmap is considered positive. PJSC Aeroflot has demonstrated significant progress in improving its corporate governance practices. The major part of the Code has been introduced into the day-to-day running of the company. The remaining provisions of the Code are being studied and will be introduced as soon as the company finishes the plan which outlines the deadlines and corporate procedures necessary for the implementation. An audit will be carried out once the implementation of the provisions is complete.

The Board of Directors approved the 2017 KPIs for Aeroflot Group’s LDP and the PJSC Aeroflot CEO as well as Aeroflot Group’s Registry and Risk Map.