Aselsan Elektronik Sanayi Ve Ticaret A.s. Class B · BIST:ASELS
Aselsan Elektronik Sanayi Ve Ticaret A.s. Class B — Aselsan — Investor Presentation (November 2015)
45 slides from Aselsan Elektronik Sanayi Ve Ticaret A.s. Class B's investor presentation, November 2015
Slide 1: Investor Presentation November 2015
Investor Presentation November 2015
Slide 2: Contents
CONTENTS 1. Global Defense Industry 2. ASELSAN at a Glance 3. Sales and Export 4. Backlog 5. Margins & Ratios 6. Sustainability 7. Talent Management 8. Contact 2
Slide 3: Contents
CONTENTS 1. Global Defense Industry 2. ASELSAN at a Glance 3. Sales and Export 4. Backlog 5. Margins & Ratios 6. Sustainability 7. Talent Management 8. Contact 3
Slide 4: The World Military Spending by Region, 2014
THE WORLD MILITARY SPENDING BY REGION, 2014 World military spending was unchanged in 2014. EUROPE $386B MIDDLE EAST AMERICAS $150B $705B ASIA & OCEANIA $407B AFRICA $50B 2014 TOTAL SPENDING: $1,776B % increase in spending 2013 vs 2014 (based on 2011 constant prices & exchange rates) ~%4 ~%-1 ~%4 ~%8
Slide 5: Top 5 with Growing Defense Budgets (2013 vs 2014)
TOP 5 WITH GROWING DEFENSE BUDGETS (2013 vs 2014) Despite the global crises, some of the countries carried out real growth in their defense budgets. GROWTH RATE (%) OF COUNTRIES (2013-2014 real terms) 17.0% 9.7% 8.1% 6.8% 2.3% Saudi Arabia China Russia Australia South Korea $81B $216B $85B $25B $37B
Slide 6: Turkey's Military Spending vs GDP
TURKEY’S MILITARY SPENDING vs GDP As being the 15th military spender globally, Turkey has healthy growth rate of defense budget. MILITARY SPENDING as % of GDP (TURKEY) 3.00% 1,400 2.6% 2.5% 2.5% Military Spending as % of GDP GDP (Billion TL - nominal terms) 2.4% 1,200 2.3% 2.3% 2.3% 2.3% 2.2% 2.2% 1
Slide 7: Turkish Defense Industry in Years & Governmental Targets
TURKISH DEFENSE INDUSTRY IN YEARS & GOVERNMENTAL TARGETS Turkey’s defense procurement strategy targeting self sufficiency and favoring local production. Turkish Sector Revenue Turkish Sector Export Revenue 10.00 2.50 8.00 2.00 2.00 1.86 Billion US $ 8.00 1.57 Billion US $ 6.00 1.50 5.08 5.10 1.26 4.
Slide 8: Contents
CONTENTS 1. Global Defense Industry 2. ASELSAN at a Glance 3. Sales and Export 4. Backlog 5. Margins & Ratios 6. Sustainability 7. Talent Management 8. Contact 8
Slide 9: ASELSAN's Progress Over the Years
ASELSAN’S PROGRESS OVER THE YEARS Turkey’s leading defense company continuing its rise in global defense industry & ranking 62nd worldwide. ASELSAN Global Defense Ranking 1,200 $ 67. 62. 1,000 $ 76. 74. 80. Millions US $ 800 $ 86. 600 $ 93. $1,109 90. $1,101 400 $ 97. $762 $848 $862 $643 $423 $488 2
Slide 10: Shareholders
SHAREHOLDERS ASELSAN is the only defense company that is listed in Borsa Istanbul (BIST). Turkish Armed Forces BIST Foundation Free Float 84.58 % 15.30 % Other 0.12% 10
Slide 11: Turkish Armed Forces Foundation (TAFF)
TURKISH ARMED FORCES FOUNDATION (TAFF) • TAFF was established by the merger of Land, Navy and Air Forces Foundations. • TAFF’s objective is to enhance the warfare capability of Turkish Armed Forces through national defense industry. • Managed by the Board of Trustees formed of: •Minister of National
Slide 12: Shareholders
SHAREHOLDERS Improved IR effort and financial transparency have been the main drivers for the increase in interest of foreign institutional investors for ASELSAN. 70% Foreign Ownership 60% 50% 40% 30% 20% 10% 0% 12
Slide 13: Board Members
BOARD MEMBERS ASELSAN’s board structure is in full compliance with Capital Market Boards new regulation on corporate governance. Assoc. Prof. Dr. Retired I. A. Retired Financial Prof. Dr. @ Former Retired Prof. Dr. Finance @Piri Reis General Deputy General İstanbul Governor/ General Emekli @Atılım U
Slide 14: Facilities
FACILITIES Macunköy Facilities (1979) Akyurt Facilities (1991) Total Area 186,000 m2 Total Area 231,000 m2 Closed Area 110,000 m2 Closed Area 54,000 m2 Gölbaşı Facilities (2014) Total Area 350,000 m2 Closed Area 75,000 m2 14
Slide 15: Divisions
DIVISIONS A global asset of Turkey’s technological infrastructure Communication & Transportation, Information Defense Systems Technologies Security, Energy & Technologies Automation Business Sector Business Sector • Air and Missile Defense Systems Business • Military Communication Systems Systems Se
Slide 16: Affiliates – Local
AFFILIATES – Local MİKROELEKTRONİK Ownership : 85% Partner: İTÜ ETA ASELSAN PRECISION OPTICS Participation: 2010 (Founded in 2006) Ownership: 50% Assets: $2.9 M Partner: Sivas Optik Malzemeleri Foundation: 2014 İSTANBUL Assets: $8.3 M MİKROELEKTRONİK ANKARA SİVAS ASELSANNET ASELSAN HASSAS OPTİK ROKE
Slide 17: Affiliates – Global
AFFILIATES – Global KAZAKHSTAN ASELSAN ENGINEERING (KAZAKHSTAN) Ownership: 49% ASELSAN-BAKU (AZERBAIJAN) Partner: Kazakhstan Engineering Foundation: 2011 Ownership: 100% Assets: $37.8 M Foundation: 1998 Assets: $2.5 M KAZAKHSTAN ASELSAN ENGINEERING ASELSAN BAKÜ ASELSAN MIDDLE EAST ASELSAN MIDDLE EAS
Slide 18: Human Resources
HUMAN RESOURCES Total Employees : 4,919 Engineers : 2,986 Technicians Engineers 26% 61% Support 6% Administrative Staff 7% As of November 2015 18
Slide 19: An R&D Company
AN R&D COMPANY As the largest R&D spender in Turkey, ASELSAN fully benefits from tax incentives on R&D activities. ASELSAN will not pay any corporate taxes till 2023. • ASELSAN’s share of the total Turkish defense sector R&D spending is 43%. • 2,854 R&D Staff (2,483 R&D Engineers) • Cooperation with
Slide 20: Contents
CONTENTS 1. Global Defense Industry 2. ASELSAN at a Glance 3. Sales and Export 4. Backlog 5. Margins & Ratios 6. Sustainability 7. Talent Management 8. Contact 20
Slide 21: Sales and Export (30/09/2015)
SALES AND EXPORT (30/09/2015) Million USD 1,200 1,141 1,141 1,000 900 911 808 800 683 685 600 518 539 400 358 209 210 200 152 83 85 112 68 67 12 21 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Q3 Sales Export 21
Slide 22: Contents
CONTENTS 1. Global Defense Industry 2. ASELSAN at a Glance 3. Sales and Export 4. Backlog 5. Margins & Ratios 6. Sustainability 7. Talent Management 8. Contact 22
Slide 23: Backlog (30/09/2015)
BACKLOG (30/09/2015) Our backlog is 4.2 Billion USD. Backlog History (Billion USD) $4.0 $4.2 $3.7 $3.9 $3.7 $3.7 2010 2011 2012 2013 2014 2015 Q3 23
Slide 24: Backlog and Backlog/Revenue
BACKLOG Our target is to maintain a backlog level of at least 3 times the total revenue. BACKLOG/REVENUE 5.4 4.8 4.5 3.6 3.4 2010 2011 2012 2013 2014 24
Slide 25: Backlog Distribution (30/09/2015)
BACKLOG DISTRIBUTION (30/09/2015) Our target is to increase foreign sales. Gendarmerie BACKLOG DISTRIBUTION (CLIENT) Sedef Shipyard Ministry of National HDW/MFI Business Partn. Defense Tübitak 6.5% TAI 11.3% Other Middle East and 18.7% Caspian Region 6.4% Exports 8.7% Americas Undersecretariat for E
Slide 26: Prospective Contracts
PROSPECTIVE CONTRACTS • Long Range Surveillance Radar • Short & Medium Range Air Defense Systems (KORKUT, Air Defense Gun Modernization, HİSAR) Serial Productions • ALTAY Serial Production • Long Range Air Defense Missile System • Turkish Airborne Stand-Off Jammer 26
Slide 27: Contents
CONTENTS 1. Global Defense Industry 2. ASELSAN at a Glance 3. Sales and Export 4. Backlog 5. Margins & Ratios 6. Sustainability 7. Talent Management 8. Contact 27
Slide 28: Margins
MARGINS Gross Profit Margin (%) EBITDA Margin (%) 23.7 24.8 18.8 19.8 2014 Q3 2015 Q3 2014 Q3 2015 Q3 Net Profit Margin (%) ROE (%) 26.9 13.8 -3.1 2.6 2014 Q3 2015 Q3 2014 Q3 2015 Q3 28
Slide 29: Guidance & CAPEX
GUIDANCE & CAPEX ASELSAN’s guidance for 2015: • TL Revenue Growth : 16-20% • EBITDA Margin : 18-20% • CAPEX : 120 Mio TL CAPEX $60M $60M $50M $50M 2015 2016 2017 2018 29
Slide 30: Risks
RISKS Important risks have been identified with regard to ASELSAN’s corporate risk management policy. • Difficulty in increasing the number and variety of customers • Cut-backs in defense expense budgets • Supplier and subcontractor risks • Global economic slowdown and financial crisis • Foreign exc
Slide 31: Contents
CONTENTS 1. Global Defense Industry 2. ASELSAN at a Glance 3. Sales and Export 4. Backlog 5. Margins & Ratios 6. Sustainability 7. Talent Management 8. Contact 31
Slide 32: Sustainability
SUSTAINABILITY ‘‘Sustainability’’ is not a new concept for ASELSAN. • ASELSAN holds OHSAS 18001:2007 Occupational Health and Safety Management System and ISO 14001:2004 Environmental Management System Certificates since 2009. • ASELSAN has been in the “Highest” category in Carbon Disclosure Project
Slide 33: Performance of ASELSAN vs. BIST-100 Index (2011-2015)
PERFORMANCE of ASELSAN vs. BIST-100 INDEX (2011-2015) ASELSAN reached a market value of USD 2.8 Billion as of 24/11/2015. 500 450 400 350 300 250 200 150 100 50 0 BIST 100 ASELSAN 31/12/2010=100 33
Slide 34: Contents
CONTENTS 1. Global Defense Industry 2. ASELSAN at a Glance 3. Sales and Export 4. Backlog 5. Margins & Ratios 6. Sustainability 7. Talent Management 8. Contact 34
Slide 35: Talent Management
TALENT MANAGEMENT • University-industry cooperation • Projects carried out with universities • Internship and co-op opportunities for high school and university students • Masters and doctorate program incentives for employees • Doctorate program scholarship • Location and fringe benefits • Back to
Slide 36: Contents
CONTENTS 1. Global Defense Industry 2. ASELSAN at a Glance 3. Sales and Export 4. Backlog 5. Margins & Ratios 6. Sustainability 7. Talent Management 8. Contact 36
Slide 37: Contact
CONTACT Contact Persons Address Levent AKKOYUNLU ASELSAN Elektronik Sanayi ve Ticaret A.Ş. CFO Mehmet Akif Ersoy Mah. 296. Cad. No:16 06370 Yenimahalle, Ankara, TURKEY Aykan ÜRETEN Tel: +90 312 592 10 00 Finance Director Web Pınar ÇELEBİ www.aselsan.com Investor Relations Manager E-Mail Başak YÜCEKA
Slide 38: Appendix
APPENDIX See 2 = Se
Slide 39: Consolidated Balance Sheet (Million TL)
CONSOLIDATED BALANCE SHEET (MILLION TL) ASSETS 30/09/2015 31/12/2014 CURRENT ASSETS 2,681.5 2,271.4 Cash and Cash Equivalents 401.7 131.9 Trade Receivables 859.6 943.7 Other Receivables 38.0 42.0 Inventories 940.4 837.4 Prepaid Expenses 275.7 199.8 Other Current Assets 166.1 116.6 NON-CURRENT ASSETS
Slide 40: Consolidated Balance Sheet (Million TL)
CONSOLIDATED BALANCE SHEET (MILLION TL) LIABILITIES 30/09/2015 31/12/2014 CURRENT LIABILITIES 1,324.0 1,201.2 Short-term Financial Liabilities 331.3 235.3 Short-term Portion of Long-term Financial Liabilities 93.2 48.6 Trade Payables 505.6 607.2 Employee Benefit Obligations 19.2 23.0 Other Payables
Slide 41: Consolidated Balance Sheet (Million TL)
CONSOLIDATED BALANCE SHEET (MILLION TL) LIABILITIES 30/09/2015 31/12/2014 EQUITY 2,136.3 2,218.9 Equity attributable to equity holders of the parent 2,136.3 2,218.9 Share Capital 500.0 500.0 Share Capital Adjustment 100.3 98.6 Other Comprehensive Income / Expense not to be Re-classified to Profit or
Slide 42: Consolidated Income Statement (Million TL)
CONSOLIDATED INCOME STATEMENT (MILLION TL) 01/01/2015- 01/01/2014- 30/09/2015 30/09/2014 PROFIT OR LOSS Sales revenue 1,821.3 1,781.2 Cost of sales (-) (1,370.1) (1,359.7) GROSS PROFIT 451.2 421.5 General administrative expenses (-) (94.8) (81.5) Marketing, selling and distribution expenses (-) (36.
Slide 43: Organization Chart
ORGANIZATION CHART Board Of Directors Internal Audit Board Office President & CEO Financial Management Shared Services Vice Presidency Vice Presidency R&D and Technology Management Human Resources Management Vice Presidency Vice Presidency Strategy & Business Development Legal Affairs Vice Presidenc
Slide 44: Disclaimer
DISCLAIMER The information contained herein has been prepared by ASELSAN (the Company). The opinions presented herein are based on general information gathered at the time of writing and are subject to change without notice. These materials contain statements about future events and expectations tha
Slide 45: ASELSAN
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