1

MoscowMoscowAugust 1, 2002August 1, 20021 1

Financial Results (IAS) 2001 Financial Results (IAS) 2001

2

Operating Results of activity2001

3

Operating Results 2001 2000 2001 % to 2000 г. Passenger turnover (million passenger kilometers)

17 434,2 18 939,3 108,6%

International 14 068,1 15 107,3 107,4% Domestic 3 366,1 3 832,0 113,8% TKM (million tone kilometers) 2 240,8 2 258,6 100,8% International 1 872,2 1 822,1 97,3%

Domestic 368,6 436,5 118,4% Traffic - passengers( thousand) 5 100,9 5 832,1 114,3% International 3 704,6 4 206,6 113,6% Domestic 1 396,3 1 625,5 116,4% Mail (ton) 2 509,9 3 877,1 154,5% International 2 106,4 3 213,6 152,6% Domestic 403,5 663,5 164,4% Cargo (ton) 104 948,8 97 850,1 93,2% International 93 280,5 83 746,0 89,8% Domestic 11 668,3 14 104,1 120,9%

4

Seat Load Factor 2001

64,2 64,2

72,7 72,7

65,7 65,8

58

60

62

64

66

68

70

72

74

International Domestc Total

20002001

The seat load factor of the Company international and domestic routs stayed on the level of year 2000, at the same time passenger turnover ratio increased on 8.6%.

5

Financial results of activity 2001 in accordance with IAS

6

The Basic articles of Balance Sheets (IAS)

31.12.01 (million USD)

31.12.00 (million USD)

Current assets 292,6 312,8

Long – term assets 819,6 864,4

Total assets 1 112,2 1 177,2

Short - term liabilities 562,6 542,1

Long – term liabilities обязательства

464,3 559,8

Minority interests 7,6 7,0

Shareholders’ equity 77,7 68,3

Total liabilities and shareholders’ equity

1 112,2 1 177,2

7

Income Statement (IAS)

31.12.01 (million USD)

31.12.00 (million USD)

Revenue 1 558,0 1 406,9

Operating costs 1 517,9 1 324,8

Operating income 40,1 82,1

Income before taxation and minority interest

10,7 39,5

Income after taxation 21,8 10,9

Net income 20,1 8,6

Earnings per share $0,018 $0,008

Decrease of deferred liabilities of the Company on income tax (the change of income tax rate from 35% to 24% and also revaluation of several assets of the Company) was generally affected on the net income volume.

8

Revenue and Costs of Aeroflot 1993-2001 (IAS) (million USD)

1158,9

1324,8

1517,9

1558,0

1406,9

1166,2

1403,11400,9

1209,5

1409,31453,5

1305,5

1000,0

1100,0

1200,0

1300,0

1400,0

1500,0

1600,0

1700,0

1996 1997 1998 1999 2000 2001

Revenue Operating costs

9

Traffic Revenue (IAS) (million USD)

771,5

93,9

956,4

117,8

1115,6

105,4

0

200

400

600

800

1000

1200

1999 2000 2001

PassenersCargo

44,6%

16,6

12,2%

Cargo traffic decrease might be explained by replacement of company’s fleet that is a result of prohibition of execution flights to the Europe with Il – 76 aircrafts. Aeroflot is planning to create regular cargo rout Europe - Asia, that is enjoy stable demand, using DC-10 aircrafts.

10

Passengers Traffic revenue (IAS) (million USD)

689,1

82,4

791,4

165,0

904,0

211,7

0

100200

300

400

500600

700

800

9001000

1999 2000 2001

InternationalDomestic

31,2%

14,2%

157%

28,3%

11

Operating Income (IAS)

2001 (million USD)

2000 (million USD)

% to 2000

Regular traffic

Passenger 1 071,1 920,1 116,4%

Cargo 74,5 92,4 80,6%

Charter traffic

Passenger 44,6 36,3 122,9%

Cargo 30,9 25,4 121,7%

Total 1 221,1 1 074,2 113,7%

12

Passenger Traffic Revenue by Regions (IAS)

2001 (million USD)

2000 (million USD)

% to 2000

Europe 432,1 347,9 124,2%

Asia 218,0 204,5 106,6%

North America 98,3 94,7 103,8%

Russia 211,7 165,0 128,3%

Other regions 90,8 84,2 107,8%

Other international traffic

20,2 23,8 84,9%

13

Cargo Traffic Revenue by Regions (IAS)

2001 (million USD)

2000 (million USD)

% to 2000

Europe 16,3 14,6 111,6%

Asia 23,7 30,2 78,5%

North America 6,3 7,8 80,8%

Russia 12,2 10,8 113,0%

Other regions 4,9 5,4 90,7%

Other international traffic

11,1 23,6 47,0%

14

Operating costs (IAS)

113,4%1 073,91 218,3Total

168,2%32,454,5Other expenses

- (34,2)5,6Increase in (release of) provision for bad and doubtful accounts

111,5%32,235,9Communication expenses

120,6%34,441,5Third-party passenger services

68,9%82,656,9Operating taxes

130,0%64,083,2Administration and general expenses

99,0%100,599,5Operating lease expenses

120,3%92,0110,7Sales and marketing

119,6%94,1112,5Maintenance

107,8%240,5259,3Aircraft and traffic servicing

106,9%335,4358,7Aircraft fuel

(million USD)

% to200020002001

(million USD)

15

The Main factors of operating costs increase as referred to 2000

• Increase of flight hours and passenger turnover caused the increase of fuel costs, aircraft and traffic servicing e.t.c.

• Re – equipment of passenger cabins of Russian made aircrafts

• Increase of prices on : fuel, rates and fares for airport and aero navigation services, maintenance and repairing of foreign made aircrafts, insurance and electricity

• Providing free transportation under the frequent flyer “Aeroflot Bonus” program

16

Costs Structure (IAS) (%)

100100Total

3,04,5Other expenses

(3,2)0,5Increase in (release of) provision for bad and doubtful accounts

3,02,9Communication expenses

3,23,4Third-party passenger services

7,74,7Operating taxes

6,06,8Administration and general expenses

9,48,2Operating lease expenses

8,59,1Sales and marketing

8,89,2Maintenance

22,421,3Aircraft and air traffic servicing

31,229,4Aircraft fuel

20002001

The Company developed cost saving program, introduction of these program have to provide expenses decrees in 2002 and further years. In particular the work under fleet optimization have to provide fuel expenses decrease that are the main component of operating costs of Aeroflot.

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Financial Results IAS (1998-2001)

Creation of debt provisions influences on decrease of EBITDA rate. EBITDA rates in 2000 and и 2001 are the same in general, if not to take into account influence of debt provisions.

128,9 139,3

186,8

144,5

0

50

100

150

200

1998 1999 2000 2001

EBITDA

-210,9

-59,6

8,6 20,1

-250

-200

-150

-100

-50

0

50

1998 1999 2000 2001

Net income

-40,9

27,834,2

-5,6

-50-40-30-20-10

010203040

1998 1999 2000 2001

Debt Provisions

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Income Rates

200,3

70,5

213,4

118,2

215,0

130,2

0

50

100

150

200

250

1999 2000 2001

InternationalDomestic

5,2

2,6

5,64,9

6,4

5,5

0

1

2

3

4

5

6

7

1999 2000 2001

InternationalDomestic

Income per 1 carried passenger (in USD) Income per 1 passenger kilometer (in cent USD)

7,3%

84,7%

23,1%

111,5%

Income rate per 1 carried passenger: On International routs in 2001increased on 0.7%as compared with 2000,In Domestic routs in 2001 increased on 10,2%as compared with 2000.

Income rate per 1 passenger-kilometer: On International routs in 2001increased on 14,3%as compared with 2000,On Domestic routs in 2001 increased on 12,2%as compared with 2000

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Asset Management Ratios

69,5 66,156,3

0

10

20

30

40

50

60

70

1999 2000 2001

1,3

1,6

1,9

00,20,4

0,60,8

11,2

1,41,61,8

2

1999 2000 2001

Days Sales Outstanding The Fixed Assets Turnover ratio

1,0

1,21,4

0,0

0,2

0,4

0,6

0,8

1,0

1,2

1,4

1999 2000 2001

The Total Assets Turnover Ratio

-4,9%

-14,8%23,1%

18,8%

20,0%

16,7%

20

Profitability Ratios

-0,050

0,006

0,013

-0,050

-0,040

-0,030

-0,020

-0,010

0,000

0,010

0,020

1999 2000 2001

-0,049

0,0070,018

-0,05

-0,04

-0,03

-0,02

-0,01

0

0,01

0,02

1999 2000 2001

%

Profit Margin on Sales (%) ROA (%)

-1,000

0,126

0,259

-1,000

-0,800

-0,600

-0,400

-0,200

0,000

0,200

0,400

1999 2000 2001

ROE (%)

21

6 Months 2002 Results of Activity

22

Operating Rates

203,6

886,2

180,5

790,2

0

200

400

600

800

1 000

1 200

mln tkm

2001 2002

Cargo Turnover International

Domestic

1 089,8 970,7-10,9%

-10,8%

-11,3%

-10,9%970,7

1 089,8

1 804,3

7 180,0

1 678,1

6 454,1

0

2 000

4 000

6 000

8 000

10 000

mln.pkm

2001 2002

Passenger Turnover International

Domestic

8 984,3

8 132,2

-7,0%

-9,5%-10,1%

-10,1%

8 132,2

Commercial Load Factor2001 2002

52,6% 54,3% 64,3% 66,6%

Seat Load Factor2001 2002

23

Operating Rates

748,8

1 957,2

703,6

1 790,3

0

500

1 000

1 500

2 000

2 500

3 000

thouand pass.

2001 2002

Passenger Carriage International

Domestic

2 706,02 493,9

-6,0%

-7,8%

-8,5%

6 766,0

42 263,7

6 868,5

40 583,7

0

10 000

20 000

30 000

40 000

50 000

ton

2001 2002

Cargo and Mail Carriage International

Domestic

49 029,7 47 452,2

+1,5%

-3,2%

-4,0%

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Passenger Traffic Revenue

69,7

453,9

69,9

467,7

0

100

200

300

400

500

600

million USD

2001 2002 (F)

International

Domestic

523,6 537,6

+0,2%

+2,7%

+3,0%

25

Operating Costs and Cost of 1 tkm

654,5 625,8

-

100

200

300

400

500

600

700

mill

ion

USD

2001 2002(F)

Oerating Costs

-4,4%60,1 62,2

-

10

20

30

40

50

60

70

80

cent

/tkm

2001 2002 (F)

Cost of 1 tkm

3,5%

26

Operating Result

61,5 60,1

1,4

66,962,2

4,7

-

10

20

30

40

50

60

70

80

cent

/ tk

m

2001 2002 (F)

Income Rate Cost Operating Result

(million USD)2001 2002

Revenue 670,0 672,6

Expences 654,5 625,8

Result 15,5 46,8

Operating Result