26 June 2017, Moscow – Aeroflot – Russian Airlines (Moscow Exchange ticker: AFLT) today held its Annual General Meeting of shareholders (AGM). Shareholders elected a new Board of Directors and voted on other items on the agenda.

The AGM approved payment of a dividend of 50% of Aeroflot Group’s net profit based on its FY 2016 financial statements under IFRS. It was resolved to pay a dividend of RUB 17.4795 per share in cash, or RUB 19,413,018.00 thousand in total, by 18 August 2017, following the procedure established by current Russian legislation. The record date establishing eligibility to receive the dividend is 14 July 2017.

Key milestones from the past year include the further development of Aeroflot’s multi-brand platform, the development of the company’s IT infrastructure and the further digitisation of its business processes. Aeroflot Group completed its restructuring as Russia’s first full-fledged aviation holding company. In 2016, Aeroflot accounted for 42.3% of the Russian civil aviation market in terms of passenger traffic, up 5.6 p.p. on 2015. An important role in the Group’s growth was played by its low-cost carrier, Pobeda, which on a number of indicators was a world leader among low-cost airlines.

Aeroflot reported strong financial results for FY 2016. Revenue increased by 19.4% to RUB 495.9 billion. The company reported a net profit for the first time since 2013, of RUB 38.8 billion. As of the end of 2016 Aeroflot’s market capitalisation was RUB 170 billion or USD 2.8 billion US dollars, exceeding that of a number of major competitors.

Despite a 4.1% decrease in the Russian passenger air transportation market, the Group significantly grew key operating indicators. Total passenger numbers by 10.3% year-on-year to 43.4 million passengers, while passenger numbers for Aeroflot airline grew by 11.0% to 29.0 million.

A study by Bain & Company ranked Aeroflot in fourth place among airlines globally by level of digitalisation. The company has started implementing projects based on Big Data, while automation of key business processes ensures efficiency and cost control, and helps keep tariffs at a low level and make air travel more accessible.

The company received a number of international awards in 2016. The world's leading independent brand consultant, Brand Finance, recognised Aeroflot as the strongest airline brand in the world and also the most recognised brand in Russia. In 2017, Aeroflot was named Best Airline in Eastern Europe for the sixth time in its history and fifth consecutive year at the prestigious Skytrax World Airline Awards.

The Group’s strategy for the period 2018-2022 has been updated. It was concluded that there are prerequisites for achieving the main objectives of Aeroflot Group’s Development Strategy until 2025 of entering the top five European and top 20 global airline groups.

A number of related-party transactions were approved, including provision of guarantees by Aeroflot in favour of Pobeda Airlines regarding lease agreements for eight new Boeing 737-800 aircraft, and the option for the waiver in favour of Aeroflot of the rights and obligations of Pobeda Airlines under a lease agreement for ten new Boeing 737-800 aircraft.

Based on a competitive selection process held in 2016, PJSC Aeroflot’s Auditor for statutory (financial) reporting according to Russian Accounting Standards for 2017 will be CJSC HLB Vneshaudit, and PricewaterhouseCoopers for IFRS.

The AGM approved new editions of the following documents:

  • Articles of Association of PJSC Aeroflot;

    Regulation on the General Meeting of Shareholders of PJSC Aeroflot;

  • Regulation on the Board of Directors of PJSC Aeroflot;

  • Regulation on the Management Board of PJSC Aeroflot;

  • Regulation on remuneration and compensation of members of the PJSC Aeroflot Board of Directors.
    The makeup of the new Board of Directors was approved, with 11 members:

  • Lars Erik Anders Bergström – Senior Advisor, UB Företagsrådgivning AB, Stockholm. Independent director;

  • Mikhail Vsevolodin - General Director of PJSC VSMPO-AVISMA Corporation

  • Alexey Germanovich - Member of the Advisory Board of the Foundation for development of Saint-Petersburg State University, independent director

  • Igor Kamenskоy - Managing Director of Renaissance Capital Financial Consultant

  • Dmitry Peskov - Director of the Young Professionals programme at the Agency for Strategic Initiatives to Promote New Projects NGO

  • Mikhail Poluboyarinov - First Deputy Chairman - Member of the Board of State Corporation Vnesheconombank

  • Vitaly Saveliev - CEO of PJSC Aeroflot

  • Dmitry Saprykin - CEO of Rossiya Airlines

  • Vasily Sidorov - CEO of the Agency for Recapitalisation of Infrastructure and Long-Term Assets, independent director

  • Yury Slyusar - President of United Aircraft Corporation

  • Sergey Chemezov - CEO of State Corporation Rostec
    The five-person Auditing Committee was elected:

  • Igor Belikov – CEO of the Russian Institute of Directors

  • Ekaterina Nikitina – Advisor to the President of OJSC Transneft.

  • Sergey Ubugunov – Head of Division at the Ministry of Transport of the Russian Federation

  • Mikhail Sorokin – Advisor to the Head of the Federal Agency for State Property Management

  • Vasily Shipilov – Deputy Head of Department at the Russian Federation Ministry of Economic Development

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