Moscow, 16 May 2014 — Aeroflot (Moscow Exchange ticker: AFLT) announces the results of a meeting of the Company’s Board of Directors meeting that took place on 15 May 2014, chaired by Kirill Androsov.
The first item on the agenda was Issues submitted for consideration at the Annual General Meeting of shareholders (AGM) of Aeroflot scheduled for 27 June.
The Board of Directors resolved:
- to approve and recommend for approval to the AGM the annual report of Aeroflot for 2013. The report notes Aeroflot’s dynamic growth as the undisputed leader on the Russian market and one of Europe’s most successful airlines. The Company set new records for passenger numbers: JSC Aeroflot carried 20.90 million passengers in 2013, and together with its subsidiaries, Aeroflot Group carried 31.39 million passengers. In 2013 Aeroflot was recognised as one of the fastest-growing and largest airlines in Europe, recording the second fastest growth in RPKs (+19.2%) and APKs (+17.8%) in a rating of European airlines. One of the most important results of the year was Aeroflot Group’s subsidiary airlines achieving breakeven at the operating level. Aeroflot plans to strengthen its position further in 2014, including through the launch of Dobrolet, its low-cost carrier (LCC) project.
- to approve and recommend for approval to the AGM the annual Russian Accounting Standards («RAS») financial statements, including the profit and loss statement, for 2013. Revenue from core activities for the reporting period totalled RUB 206,277 million, an increase of 16.8%. Net profit for 2013 was RUB 11,097 million, an increase of 264.91%.
- to approve and recommend for approval to the AGM payment of a dividend of RUB 2.4984 per share for 2013. The total dividend was set at RUB 2,774.208 million, or 25% of the Company’s RAS net profit for 2013. The Company will pay RUB 1,419.562 million of this sum to its largest shareholder, the Russian Federation Government. The Board recommended that the AGM approve 8 July as the record date for inclusion in the shareholder register in order to receive the dividend payment.
Other issues considered were:
- Progress on implementation of Aeroflot Group’s strategy. The targets of the adopted Group Development Strategy through 2025 were reaffirmed. The main obstacles to implementation are related to airport infrastructure. However, the Group’s development going forward has been clearly formulated taking these conditions into account. A multibrand approach has been acknowledged as optimal, including the launch of the Dobrolet LCC project, which is progressing according to schedule, with flights set to start in summer 2014. The programme for implementation of the Group Development Strategy for 2015-2020 was approved. The Group’s operating and financial targets were set, including the following indicators (by 2020):
Passenger numbers — 67.6 million;
Passenger load factor — 81.9%;
Number of aircraft in the fleet — 383.
- Investor Relations. In Q1 2014 Aeroflot representatives engaged in an active programme of meetings with the investment community. The priorities for Aeroflot’s investor relations activity were approved. Implementation is designed to support the development of productive dialogue with the investment community, and to increase the value of Aeroflot.
The Board of Directors recommended for approval by the AGM a number of transactions, including with subsidiaries, in the interests of strengthening the integration of commercial activity within Aeroflot Group.
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Aeroflot is Russia’s flagship carrier and one of the largest airline groups in Europe. In 2013, its 90th anniversary year, Aeroflot carried 20.9 million passengers (31.4 million passengers as Aeroflot Group including subsidiaries), a record for any Russian airline. A proud member of the SkyTeam global airline alliance, Aeroflot and its partners serve more than 1,000 destinations in 178 countries worldwide. Aeroflot operates one of the most modern and youngest fleets in Europe, numbering 157 Airbus, Boeing and Sukhoi airliners with an average age of 4.3 years. Aeroflot is among the global leaders in aviation safety. The company’s European Community Safety Assessment of Foreign Aircraft (SAFA) Index, which is the main globally recognized safety parameter, is comparable to global peers. The first Russian carrier to enter the IATA Operational Safety Audit (IOSA) register, renewing its registration for the fifth time in 2013, Aeroflot has successfully passed the IATA Safety Audit for Ground Operations (ISAGO) and is fully ISO 9001:2008 compliant. In 2013 Aeroflot was named by SKYTRAX as the Best Airline in Eastern Europe for the second time. Find more at www.aeroflot.com.