OREANDA-NEWS. June 9, 2012. JSC “Aeroflot” Board of Directors at an ordinary meeting has made key decisions on holding an Ordinary Annual General Shareholder Meeting on June 25, 2012. Yesterday voting on a number of questions of comprehensive agenda has been finalized.

The Board of Directors endorsed and recommended the shareholders to approve the Annual Report of the Company for 2011. The key development of the year for the Company was the integration of the former aviation assets of State Corporation “Russian Technologies” into the Aeroflot Group. 2011 became the record-setting year in the Company’s Russian history, Aeroflot alone has carried more than 14 mln. passengers, and more than 20 mln. passengers including subsidiary airlines. Despite negative impact of the higher oil prices and rising fuel costs for the entire air transportation sector, Aeroflot maintains high financial stability. The indication of this is the fact that in March 2012 the International Rating Agency “Fitch” has confirmed Aeroflot’s rating at BB+ level with a stable outlook for the third consecutive year. Aeroflot has all the pre-requisites and consistently moves on to become a truly global airline, one of the largest carriers of the world, economy development agent for the market sector and the country.

As a part of Aeroflot’s Ordinary Annual General Shareholder Meeting preparation the Board of Directors approved the agenda of the Annual General Shareholder Meeting.

The Board of Directors endorsed and recommended the shareholders to approve the annual financial statements of JSC “Aeroflot”, including the Profit and Loss Statement of the Company for 2011. Revenue of JSC “Aeroflot” for 12 months 2011 amounted to 135 801 mln. RUB. net income reached 10 404 mln. RUB.

The recommendation to pay out 19.2% of net income in the form of dividend has been submitted. The Board of Directors approved and recommended the shareholders payment of the dividends on JSC “Aeroflot” shares based on the results of 2011 fiscal year in the amount of 1.8081 RUB per share from June 26, 2012 to August 24, 2012.

The information and opinion of the Revision Committee as well as opinion of the independent auditor of JSC “Aeroflot” and Audit Committee of the Board of Directors following the results of 2011 fiscal year have been reviewed and taken into consideration. Upon examining the reports of JSC “Aeroflot”, auditor’s and Revision Committee opinion, Audit Committee of the Board of Directors recommended the shareholders to approve the presented financial results of the Company for 2011 fiscal year.

The results of tender of the independent auditor companies were examined at the meeting and the recommendation to the shareholders of JSC “Aeroflot” to approve the winner of the tender, audit company CJSC “BDO”, as an independent auditor for 2012 was issued.

The Board of Directors approved the report on Innovative Development Program of JSC “Aeroflot” execution in 2011. Its approval can be considered as an important step in achievement of the new level of development for the Company. Innovative character of Aeroflot’s operations is proved by an array of authoritative assessments and ratings including technology audit, carried out in 2011. The total investment expenditure related to innovative projects of the Program amounted last year to 30 824 mln. RUB, which makes 23% of the Company’s revenue. 136 mln. RUB have been directed to research and development in the reporting period, which is in accordance with 0.1% of revenue figure, specified in the Program. As a result of Innovative Development Program of JSC “Aeroflot” execution in 2011 fiscal year the Company outperformed the target values of development in all areas of operations, quality of services provided, resources saving level and ecology.

Regarding high growth dynamics of JSC “Aeroflot” operations and as a result increasing demand in fleet expansion the Board of Directors examined a number of transactions, related to Airbus A320-200 aircraft leasing.

Having examined the question on Company’s branches and representative offices functioning, the Board of Directors decided to open representative offices of JSC “Aeroflot” in Odessa (Ukraine) and Miami (USA).

Information on mentioned above decisions made by the Board of Directors will be disclosed according to procedures established by Russian Federation legislation system.