SHEREMETYEVOinternational airport: SHEREMETYEVO international airport POSITIVE OUTLOOK


Joint Stock Company Sheremetyevo International Airport: results of 2004: Joint Stock Company Sheremetyevo International Airport: results of 2004 153 k movements 12,9 mln passengers 141 k tons of cargo Revenue* - RUR 4,5 billion Net profit* - RUR 736 million * - with the exception of the affiliated and dependent structures


Revenue structure 2004: Revenue structure 2004


Number of passengers serviced at the Moscow airports: SVO has significantly exceeded the level of 1990: Number of passengers serviced at the Moscow airports: SVO has significantly exceeded the level of 1990


Sheremetyevo is leading in SCHEDULED traffic: Sheremetyevo is leading in SCHEDULED traffic Year: 2004 Source: TKP


SVO’s leadership is vividly demonstrated in the INTERNATIONAL scheduled traffic sector.: SVO’s leadership is vividly demonstrated in the INTERNATIONAL scheduled traffic sector. Year: 2004 Source: TKP


SVO handles 34 % of Moscow scheduled domestic traffic: SVO handles 34 % of Moscow scheduled domestic traffic Year: 2004 Source: TKP


Scheduled international traffic is Sheremetyevo Airport’s priority: Scheduled international traffic is Sheremetyevo Airport’s priority


EuroAsia is the main destination of SVO passenger traffic : EuroAsia is the main destination of SVO passenger traffic


Sheremetyevo International Airport:advantages and disadvantages: Sheremetyevo International Airport: advantages and disadvantages Advantages: The largest volume of the scheduled international traffic in Russia Presence of two global alliances - Sky Team and Star Alliance Available space for the terminals and other passenger infrastructure expansion The shortest distance to Moscow downtown, business centers and the administration authorities of the State III-rd category from 2 directions Both way international – domestic transfer services has been recently implemented Highest level of security, experience in servicing US bound flights Disadvantages: Overcapacity of the out-of-date terminals Quality of services requires significant improvement Limited aerodrome and airspace handling capacity Reconstruction and development activities absence for a long period of time Low quality of ground transport service to/from the airport, no rail way


SVO strategic prospects and values: SVO strategic prospects and values To represent Russia with dignity, to be the main air gateway to the country To become a global leader in the airport management sector To maximize stock value To establish trustworthy and transparent relationships with the partners To be reliable and powerful partner to airlines To be attractive and socially responsible employer


Strategy targets: Strategy targets To increase terminals, runways and airspace capacity To reorganize the ground-handling scheme, to bring quality in compliance with the international standards, passengers and airlines expectations. To attract co-businesses to the airport, to develop concession mechanism To increase transfer passenger throughput up to 30 % by 2010 To organize speed ground transport links to Moscow (step by step, by 2007) Railway: 30 minutes to downtown Express road: 10 minutes to MKAD (Moscow Ring Road) Taxi service: international quality and fixed rates.


Perspective projects at Sheremetyevo: 2005 – 2007: Perspective projects at Sheremetyevo: 2005 – 2007 Moscow – St. Petersburg Express road New terminal (next to Terminal 1 – reserve for «wave» reconstruction New rapid exit taxi ways construction and runways reconstruction Railway link to Moscow Reconstruction and enlargement of Terminal 2 Fuel-supply complex reconstruction and expansion Terminal 3


Terminal1 development concept.: Terminal1 development concept. A new building and a parking area in Terminal-1 sector Total area – 31250 sq. meters Capacity – 5 mln passengers annually Commercial area – 30% Parking for 800 cars Total cost – USD 76,5 mln Operational by Dec. 2006 The reserve for possible future ”wave” overall sector reconstruction


Terminal 2 – key element of Sheremetyevo airport infrastructure: Terminal 2 – key element of Sheremetyevo airport infrastructure Terminal 2 was opened for the Olympic Games on May 6, 1980 and has been intensely operating for 25 years without any major repairs. Terminal area constitutes 100 K sq. meters, it was designed for up to 7 mln passengers per year. In 2004 Terminal 2 handled about 8 mln passengers.


Terminal 2 expansion and its integration with Terminal 3. : Terminal 2 expansion and its integration with Terminal 3. Terminal 2 reconstruction and extension to Terminal 3. Total area – 240000 sq. m. Terminal-2 capacity after reconstruction - 18 mln passengers annually Commercial area – 30% Parking area for 2500 cars Total cost – USD 310,8 mln Operational by Dec. 2007 In future, the symmetrical development in the opposite direction is highly possible T3


Terminal 3 project: Terminal 3 project OAO Terminal, with 100 % shares held by Aeroflot, has started Terminal 3 construction : Total area – 160 k sq. meters Capacity – 9 mln passengers per year Total construction cost – USD 500 mln approximately Commissioning term – the end of 2007 It is assumed that Aeroflot together with its SkyTeam partners will be quartered in Terminal 3


The improvement of the terminals commercial efficiency : The improvement of the terminals commercial efficiency Today, the duty free trade at Sheremetyevo is mainly focused on alcohol, tobacco and cosmetics. The offered snacks are not adequate in terms of price-quality ratio. To increase the profitability of the commercial areas and to make the airport more attractive for passengers it is necessary to improve quality and to expand the range of the offered goods and services. At present, we are developing the concept of commercial areas reorganization and management of the tenants-concessionaires activities. The world’s leading duty free operator Dufry is involved and participates in the project.


External traffic communication:design of the motor and railway roads: External traffic communication: design of the motor and railway roads


Sources of finance: Sources of finance Own funds – operation profitability and insignificant debt enables to make considerable investments for development purposes. Loans – Sheremetyevo Airport’s financial and operational indices make the company an attractive borrower. The export credits – the airport has a possibility to acquire the imported equipment on favorable conditions, with the support of the export-import agencies of the producing countries. Project finance – all the reconstruction plans are drawn up in a form of the attractive investment projects. Concessionaires’ and partners’ funds. Federal budget: for the development of the airfield and other infrastructure which are not subject to privatization.


Sheremetyevo Airport– the country insurance policy leader. : Sheremetyevo Airport– the country insurance policy leader. As a large international airport Sheremetyevo Airport is in charge of risk management and represents a reliable partner; in particular, it is evidenced by the airport’s liability insurance program. The airport civil liability insurance program, implemented for the period August 15, 2005- August 14, 2006, complies with all international standards and requirements, qualifying the insurance coverage for the international airports. The combined limit of the airport’s liability constitutes record-breaking (for Russia) amount of USD 500 mln, without any sub limits restricting the insurance compensation payment to passengers, airlines and third parties. The insurance program as well includes the terrorism acts risks with the liability limit of USD 50 mln. The program of insurance and re-insurance was developed jointly by the Russian and UK Aon Corporation specialists. Risks reinsurance shall be effected only in international insurance companies with the Standard&Poor’s rating higher than “BB”.


Insurance liability limits of world airports, mln dollars: Insurance liability limits of world airports, mln dollars


“Quick” changes program:redecoration and terminal design improvement. : “Quick” changes program: redecoration and terminal design improvement. Replacement of ceilings and a new color solution for Terminal 2 arrival zone Before: After:


“Quick” changes program :taxi service at Terminal 2 - fixed rates and high quality: “Quick” changes program : taxi service at Terminal 2 - fixed rates and high quality


Thanks for your attention!: Thanks for your attention!