Page 124 - RusRPTDec20

For 10M20, total PAX fell 50.3% y/y, RPK was down 55.6% and PLF stood at 73.8%
Lower on seasonality and COVID impact. In recent years, the usual decline of October volumes and RPK vs the previous month was c10%. This year the decline is more significant at c20-22%, as the second wave of COVID pressured domestic market volumes. Yet, 10M20 results fit well into our FY forecasts. We expect RPK to decline by 53.9% to 72 mn pax-kms and see PLF at 72.9% in 2020.
Aeroflot​ CEO Saveleiev may become new Transport Minister. ​In turn, Mikhail Poluboyarinov is the key candidate for his replacement. As part of a large-scale reshuffle among the Ministry leaders, Transport Minister Ditrich has left his post and is likely to be appointed as head of the Belgorod region. PM Mishustin proposed a new candidate – Aeroflot CEO Savelyev According to media reports (RBC), Mikhail Poluboyarinov may become the new CEO of Aeroflot. Poluboyarinov is the CEO of GTLK and was appointed relatively recently in March 2020. Prior to that, Michael worked for VEB and other financial institutions. In 2000-09 Poluboyarinov worked for Aeroflot, including in the role of Deputy CEO We welcome the possible appointment of Savelyev as Minister of Transport, we believe that industry experience is a very valuable asset for the head of the Ministry. Poluboyarinov is well familiar with Aeroflot business and we believe this is supportive for the changes. At this stage, we consider the news neutral.
9.2.4 ​Construction & Real estate corporate news
Etalon​ group held its capital markets day on November 20 at, which it presented the outlook until 2024 the main points included:
A clear dividend commitment was articulated. The minimum payment of R12 per share was reiterated and there is a target to increase dividends to pay 40-70% of net profit.
The long-term incentivisation program for top management (CEO and next level below) is to be based on market cap only. The incentive will be paid in cash instalments if the market cap increases by more than 20% over three years. This assumes the market cap remains above the required level (if it doesn't, the remaining instalments are not paid).
Etalon is well on track to outperform its 2020 guidance and plans to be on par with the 2019 results in terms of NCS in monetary terms and cash collections.
124 ​RUSSIA Country Report​ December 2020 www.intellinews.com