Otokar Otomotiv Ve Savunma Sanayi A.s. · BIST:OTKAR
Otokar Otomotiv Ve Savunma Sanayi A.s — Investor Presentation (February 2018)
69 slides from Otokar Otomotiv Ve Savunma Sanayi A.s's investor presentation, Feb 2, 2018
Slide 1: Prepared based on 2017 financial results
(02.02.2018) Prepared based on 2017 financial results 1
Slide 2: Agenda
Agenda ABOUT US • INTRODUCTION FINANCIAL INDICATORS • VISION & MISSION LONG-TERM OBJECTIVES • FINANCIAL STATEMENTS & • BRIEF HISTORY RATIOS • SUSTAINABLE GROWTH • PRODUCTION-SALES- REVENUE-BACKLOG • GROWTH WITH PRODUCTS WHICH • SHAREHOLDER STRUCTURE LICENSE RIGHTS BELONG TO OTOKAR • CAPITAL EXPENDIT
Slide 3: Introduction
Introduction Turkey’s the largest private and 100% domestically owned company in defense industry A global company, intellectual property rights belong to itself and its products are in use on 5 continents as well as in more than 60 countries Turkish Armed Forces’ leading supplier and exporter of la
Slide 4: Vision & Mission
Vision & Mission Vision • Otokar’s vision is to preserve the local and national identity of its products by developing technologies in-house, also to provide continued satisfaction for its clients, employees, and shareholders with total excellence philosophy. Mission • Otokar’s primary mission is to
Slide 5: Brief History
Brief History 1963 1970s 1980s 1990s 2000s 2010s Establishment Turkey’s first Production of Military Merge with the Production of City Production of interciy bus 4x4 tactical armoured İstanbul Fruehauf Buses buses under the The first Turkish vehicle under vehicles by own A.S. Multi
Slide 6: Sustainable Growth
Sustainable Growth TRY/USD Million TL USD Revenue 2.000 1.800 1.600 1.400 1.200 1.000 800 600 400 200 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 6 LONG-TERM OBJECTIVES
Slide 7: Partnership Structure
Partnership Structure Ünver Holding 25% 45% *Other 30% *27% Listed *3% Other 7 ABOUT US
Slide 8: Production Plant
Production Plant Otokar Land Systems (U.A.E) Otokar S.A.S Europe (France) Otokar Headquarters (Turkey) Sakarya Province 552,000 m2 plant, approximately 2150 employees Capacity of Certificates ISO 9001 Quality Standard 3700 Land Vehicle ISO 14001 Environmental Standard 900 Tactical Armoured Vehicle I
Slide 9: Employee Profile
Employee Profile Otokar 2147 Employee 669 Office Worker Personnel 501 R&D Centre Personnel Other 465 _— : ABOUT US
Slide 10: Employees & Revenue per Employee
Employees & Revenue per Employee 10 ABOUT US
Slide 11: Product Range
Product Range Commercial Vehicles Defense Industry Public Transport Logistic Vehicles Light Truck Land Platforms Turret Systems Varieties Varieties Varieties Varieties Varieties KENT / DORUK / FRUEHAUF / OTOKAR LAND ROVER DEFENDER / MIZRAK UKKS OTOKAR ATLAS SULTAN / POYRAZ / ARMOURED PERSONAL KESKİN
Slide 12: Public Transport Vehicles
Public Transport Vehicles Otokar, Turkey’s the most preferred bus brand for the seventh time! About 30 thousand buses, carrying millions of passengers in more than 40 countries! 12 ABOUT US
Slide 13: Otokar Buses
Otokar Buses POYRAZ Wide product range from intercity transport to personnel and tourism SULTAN / NAVIGO transport DORUK / VECTIO Special Products TERRITO Researches for Alternative fuels KENT KENT ARTICULATED 13 ABOUT US
Slide 14: POYRAZ
POYRAZ The new small bus with low operating costs and very efficient fuel consumption, designed for service transport 14 ABOUT US
Slide 15: SULTAN / NAVIGO
SULTAN / NAVIGO • Turkey’s best-selling small bus • Different models for intercity transport, service and tourism transport • New model with Low Floor has been presented to market. 15 ABOUT US
Slide 16: DORUK/VECTIO/ULYSO
DORUK/VECTIO/ULYSO • Turkey’s market leader in medium-sized buses • “Grand Award” prize in Europe • Different models for intercity transport, service and tourism transport 16 ABOUT US
Slide 17: TERRITO
TERRITO The 12-meter bus developed for the European market 17 ABOUT US
Slide 18: KENT
KENT • Turkey’s most preferred 12 m. intercity bus • 2 Design Award in Europe and Turkey 18 ABOUT US
Slide 19: KENT ARTICULATED
KENT ARTICULATED Kent Articulated bus was introduced at Busworld Exhibition, Belgium in 2015. 19 ABOUT US
Slide 20: Alternative Fueled Buses
Alternative Fueled Buses 2007 2009 2011 2012 DORUK Hibra DORUK DG KENT DG DORUK ELECTRA Turkey’s first Turkey’s first 12 m CNG bus Turkey’s first electric hybrid bus natural gas powered bus mid-sized bus 20 ABOUT US
Slide 21: Logistic Vehicles
Logistic Vehicles About 25 thousand semi-trailers that provide transportation service on the roads of the world! 21 ABOUT US
Slide 22: Trailer
Trailer Curtainsider Trailers Van Type Trailer Tanker Trailer Internal Logistic Tools -TIRLINER -ICELINER -ADR CERTIFICATED -CONTAINER CARRIER -EUROSLIDER -TEXTILE CARRIER TANKER -PLATFORM TRAILER -SPEEDSLIDER -TRAILER AND -ROLL CARRIER -MEGALINER TRUCK-TOP APPLICATIONS -TIPPER CHASIS -ECOTIR -ECOLI
Slide 23: Curtainsider Trailer
Curtainsider Trailer Customer-oriented solutions in the transportation of dry load 23 ABOUT US
Slide 24: Van Type Trailer
Van Type Trailer The most preferred refrigerated trailer for transport of perishable goods in hygienic and safe conditions for 14 years in Turkey. 24 ABOUT US
Slide 25: Tanker
Tanker • Turkey’s first ADR certificated trailer • Wide product range and proficiency 25 ABOUT US
Slide 26: Light Truck
Light Truck Otokar GA Kas = ABOUT US
Slide 27: ATLAS
ATLAS A light truck, with high payload capacity and low operating cost 27 ABOUT US
Slide 28: Defence Industry
Defence Industry More than 29.000 military vehicles serving in 5 continents and more than 30 countries 28 ABOUT US
Slide 29: Land Systems
Land Systems Tactical Wheeled Vehicles Tracked Vehicles Turret Systems TWV TWAV TAV MBT 4x4 6x6 8x8 Land Rover APC ARMA 6X6 ARMA 8X8 TULPAR ALTAY MIZRAK UKKS Defender URAL KESKİN UKKS COBRA OPEN TURRETS COBRA II INTERNAL SECURITY TURRET KAYA WEAPON STATIONS (MİLAN KAYA II TOW) KALE UCOK ISV BOZOK BA
Slide 30: COBRA
COBRA Armoured tactical vehicle which has worldwide competitiveness with its unique design, mobility, survivability and superior protection 30 ABOUT US
Slide 31: COBRA II
COBRA II The new member of COBRA family the most well- known vehicle of Otokar. Large internal volume, high protection. 31 ABOUT US
Slide 32: URAL
URAL Otokar’s new armoured tactical wheeled vehicle that is suitable for Police Force and Internal Security Force usage. 32 ABOUT US
Slide 33: KAYA Mine Resistant Vehicle
KAYA Mine Resistant Vehicle The mine resistant vehicle which provides maximum mine and ballistic protection in all types of terrain, offers great mobility 33 ABOUT US
Slide 34: KAYA II Personnel Carrier
KAYA II Personnel Carrier The mine resistant personnel carrier vehicle that consists of single cabin with monocoque body 34 ABOUT US
Slide 35: KALE Mine Resistant Vehicle
KALE Mine Resistant Vehicle Mine resistant personnel carrier 35 ABOUT US
Slide 36: ARMA
ARMA ARMA is new generation modular multi-wheel configuration armoured vehicle with high level of ballistic and mine protection 36 ABOUT US
Slide 37: ARMA 6X6
ARMA 6X6 Arma 6x6, with large internal volume, amphibious capability and low silhouette 37 ABOUT US
Slide 38: ARMA 8x8
ARMA 8x8 Armoured combat vehicle ARMA 8x8, provides high protection and large internal volume 38 ABOUT US
Slide 39: TULPAR
TULPAR A new generation tracked armoured vehicle which ends Turkey’s dependence on foreign sources and its all intellectual property rights belong to OTOKAR 39 ABOUT US
Slide 40: Internal Security Vehicle
INTERNAL SECURITY VEHICLE The armoured tactical vehicle specifically designed and developed with the aim of internal security in cities and living areas. 40 ABOUT US
Slide 41: Otokar Turret Systems
Otokar Turret Systems • Since 1989, Otokar has been working on turret systems to meet the needs as well as demands of current and potential users in land systems with trained manpower and R&D investments. • Otokar has nearly 27 years of experience and expertise on the subjects of original design and
Slide 42: ALTAY Project
ALTAY Project Otokar is the PRIME CONTRACTOR of Turkish Main Battle Tank Project ALTAY. 42 ABOUT US
Slide 43: ALTAY Project
ALTAY Project The request for Altay serial production proposal document was released and Otokar was invited to the tender. 43 ABOUT US
Slide 44: R&D
R&D Otokar’s R&D, establishment dates back to 1970’s, today as of today, Otokar is designing and manufacturing Turkey’s vehicles. Otokar’s R&D works to develop products whose intellectual rights belong to itself, with the vision of having and dominating the technology. 44 ABOUT US
Slide 45: R&D Capabilities
R&D Capabilities CAD programs for product developments The Prototype workshops and softwares Computer-aided analysis and simulation softwares Test-purpose setup and software 45 ABOUT US
Slide 46: Otokar Test Centres
Otokar Test Centres Dinomometrel Air-conditioned Test Centre; Turkey’s first and only, one of the few facilities in Europe Turkey’s the highest capacity hydraulic road simulator Turkey’s the biggest and the world’s most modern Electromagnetic Compatibility Testing Centre 46 ABOUT US
Slide 47: Otokar Test Centres
Otokar Test Centres One of the world’s most advanced and modern ballistic laboratories and mine testing equipments 47 ABOUT US
Slide 48: Balance Sheet
Balance Sheet 31.12.2017 Total Assets (TRY) Total Liabilities&Shareholders Equity (TRY) Current Assets 1.631.551 S.T. Liabilities 1.072.319 Fixed Assets 378.036 L.T. Liabilities 653.714 Shareholders Equity 283.554 Total 2.009.587 Total 2.009.587 48 FINANCIAL INDICATORS
Slide 49: Income Statement
Income Statement TRY thousands (IFRS) 31.12.2017 31.12.2016 Net Sales 1.785.272 1.634.515 Cost of Sales (1.313.646) (1.224.669) Gross Profit 471.626 409.845 Operating Costs (245.912) (245.202) Operating Profit 225.714 164.643 Finacial Expenses (136.258) (96.650) Profit Before Taxes 90.706 68.080 Tax
Slide 50: Net Profit
Net Profit Million TRY 50 FINANCIAL INDICATORS
Slide 51: Cash Flow Statement
Cash Flow Statement TRY thousand (IFRS) 31.12.2017 31.12.2016 Cash and Cash Equivalents at the beginning of the period 38.598 62.960 Net cash provided by operating activities 204.043 397.172 Net cash used in investing activities (94.697) (76.629) Pre-financing cash flow 109.346 320.543 Net cash used
Slide 52: Working Capital
Working Capital TRY thousands 31.12.2017 31.12.2016 Current Assets 1.631.551 1.449.932 S. T. Liabilities 1.072.319 1.066.339 Working Capital 559.232 383.593 52 FINANCIAL INDICATORS
Slide 53: Net Financial Debts
Net Financial Debts TRY TRY 31.12.2017 31.12.2016 31.12.2017 31.12.2016 thousand thousand Cash and S.T. Bank Loans 228.958 38.598 Equivalents 513.658 4.672 Trading Securities 1.325 52 L.T. Bank Loans 190.000 425.447 Other 0 0 Total Financial Total Financial Debts 703.658 430.119 230.283 38.650 Asset
Slide 54: Financial Ratios And Margins
Financial Ratios And Margins Financial Ratios 2017 2016 Margins 2017 2016 Current Ratio 1,52 1,36 Gross 26,4% 25,1% Margins Liquidity Ratio 1,14 0,90 Operating Return On Equity 35,1% 28,7% 12,6% 10,1% Margin Return on Assets 4,9% 3,9% EBITDA 10,4% 10,4% Cur.Assets/Tot.Assets 81% 81% Margin Short Ter
Slide 55: Margins
Margins 55 FINANCIAL INDICATORS
Slide 56: Production Units
Production Units 56 FINANCIAL INDICATORS
Slide 57: Revenue Distribution
Revenue Distribution 57 FINANCIAL INDICATORS
Slide 58: Revenue Distribution
Revenue Distribution Domestic 2016 _ pg Trailer Tank i 4,4% Other 11,6% Armoured 42,5% Export 2016 LR Other 47% 3,0% Armoured 33,5% Domestic 2017 ws Trailer Tank sa 2,9% LR 0,2% Other 13,5% Armoured 48,0% Export 2017 Trailer LR Other 0,6% _0,9% Armoured 35,5%
Slide 59: Backlog
Backlog 59 FINANCIAL INDICATORS
Slide 60: Capital Expenditures
Capital Expenditures 60 FINANCIAL INDICATORS
Slide 61: Stock Performance
Stock Performance 61 FINANCIAL INDICATORS
Slide 62: Dividend
Dividend 62 FINANCIAL INDICATORS
Slide 63: Market Capitalisation
Market Capitalisation 63 FINANCIAL INDICATORS
Slide 64: Growth With Products Which License Rights Belong to OTOKAR
Growth With Products Which License Rights Belong to OTOKAR 97% The share of Otokar designed vehicle sales in turnover. 229 Number of owned patents and industrial designs 64 LONG-TERM OBJECTIVES
Slide 65: Otokar Europe
Otokar Europe Otokar Europe was established in 2011 in France, in order to support bus sales in Europe. 65 LONG-TERM OBJECTIVES
Slide 66: Growth in Export Markets
Growth in Export Markets 66 LONG-TERM OBJECTIVES
Slide 67: Growth in Export Markets
Growth in Export Markets Million USD 67 LONG-TERM OBJECTIVES
Slide 68: Shareholders Value Creation
Shareholders Value Creation • Continuously increase in revenue to ensure high and sustainable dividend yield • In the framework of our corporate governance and professional management principles, we aim to move further up our company's market value 68 LONG-TERM OBJECTIVES
Slide 69: Otokar Investor Relations
Otokar Investor Relations Please visit www.otokar.com.tr Doğan Seçkinler Finance & IR Manager +90 264 229 22 44 – 6300 dseckinler@otokar.com.tr H. Gülşah Mutlu IR &Corporate Governance Manager +90 264 229 22 44 – 6316 gmutlu@otokar.com.tr Emre Altuğ IR &Corporate Governance Responsible +90 264
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