Otokar Otomotiv Ve Savunma Sanayi A.s. · BIST:OTKAR
Otokar Otomotiv Ve Savunma Sanayi A.s — H1 2022 Earnings Presentation
41 slides from Otokar Otomotiv Ve Savunma Sanayi A.s's earnings presentation, August 2022
Slide 1: 2022 6-Month Financial Results
2022 6-Month FINANCIAL RESULTS
Slide 2: Introduction
01 INTRODUCTION Turkey’s 100% domestically owned leading automotive and defense industry company 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 For the 13th time, market leader in the total bus segments
Slide 3: Vision & Mission
VISION VISION 02 & MISSION & 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 prima
Slide 4: Brief History
03 BRIEF HISTORY 1963 1970s 1980s 1990s 2000s 2010s • Merge with the • Establishment of Otokar Europe SAS in • Establishment • Turkey’s first • Production of • Military armored İstanbul Fruehauf A.Ş. France • Production of buses intercity bus 4x4 tactical vehicle vehicles by own desing • Production
Slide 5: Overview
04 OVERVIEW USD 146 MILLION EXPORT REVENUES IN 2022 6M TL 3,651 MILLION TURNOVER IN 2022 6M TL 1,6 BILLION 10 YEAR R&D EXPENDITURES 5,300 BUSES & MINIBUSES 2,000 TACTICAL VEHICLES 3,134 552,000 M2 APPROX. 300 YEARLY EMPLOYEES PRODUCTION Temporary employees included PRODUCTION AREA SALES & SERVICE NE
Slide 6: Human Resources
05 HUMAN RESOURCES Office Employee Undergraduate Field Employee Associate Degree High School 25% & Graduate 75% 7% 2% 3% Associate Degree 14% OFFICE Elementary & Undergraduate FIELD High School EMPLOYEE 59% EMPLOYEE EMPLOYEE 34% Graduate & PhD. EDUCATION DISTRIBUTION 32% EDUCATION DISTRIBUTION Techn
Slide 7: Production Plant
06 PRODUCTION PLANT 552.000m2 factory with an annual production capacity of 9,600 units and more than 3,100 employees in Arifiye/Sakarya
Slide 8: Otokar Worldwide
07 OTOKAR WORLDWIDE GROWTH IN EXPORT MARKETS NUMBER OF COUNTRIES 100 80 32 32 32 33 60 30 31 29 26 26 22 25 40 20 19 19 18 51 51 53 54 20 15 15 42 46 49 10 10 25 32 36 38 38 38 6 6 7 9 18 24 4 4 5 4 4 4 4 4 9 9 11 14 0 2007 2012 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2008 2009 2010 2011 2
Slide 9: Areas of Operation
08 AREAS OF OPERATION 2022 6M Total revenue 1586 mn TL 195 mn TL 1417 mn TL 454 mn TL Rev. Contribution : 43% 5% 39% 12% Domestic : 955 mn TL 195 mn TL 39 mn TL 225 mn TL Export : 630 mn TL - 1378 mn TL ARMORED 229 mn TL Export share* : 40% (bus) - 97% (armoured) 51% (spare part) Export share** : 17
Slide 10: Areas of Operation
09 AREAS OF OPERATION • Widest product range in the Turkish bus segment • The leading supplier of land defense systems. with an offering that includes buses from 6 to 21 meters with varying passenger capacities suitable for • More than 30.000 vehicles are actively used both city, intercity and touri
Slide 11: Commercial Vehicles
10 COMMERCIAL VEHICLES PUBLIC TRANSPORT LOGISTIC&CARGO TRANSPORTATION CENTRO ATLAS L E-CENTRO ATLAS S SULTAN / NAVIGO DORUK / VECTIO ATLAS 3D TERRITO KENT E- KENT E- KENT ARTICULATED KENT ARTICULATED KENT XL
Slide 12: Defense Industry Vehicles
11 DEFENSE INDUSTRY VEHICLES
Slide 13: Commercial Vehicles
12 COMMERCIAL VEHICLES APPROXIMATELY 1 OUT OF EVERY 2 BUSES SOLD IN TURKEY IN 2021 IS OTOKAR In the total of segments in which it operates Approximately 1 out of every 2 buses sold in Turkey in 2021 is Otokar The total of the segments in which it operates as a market leader, was the best-selling bra
Slide 14: Otokar 2022
13 OTOKAR 2022 50 natural gas powered city buses purchased by Azerbaijan's leading public transportation company, Xaliq Faiqoglu, started service with a ceremony held in Baku. Otokar participated in DSA - 2022, in Malaysia’s capital Kuala Lumpur, and showcased its ARMA 6X6 and COBRA II vehicles. Oto
Slide 15: Otokar 2022
14 OTOKAR 2022 Otokar promoted its broad armored vehicle product range in the foremost aerospace, defense and security exhibition of Latin America, FIDAE 2022, on 5-10 April, in Santiago, Chile. Otokar delivered the first 20 of the 100 bus rapid transit (BRT) buses as part of the tender that the IET
Slide 16: Otokar 2022
15 OTOKAR 2022 Otokar debuted its electric bus range, featuring models from 6mt to 19mt, at Busworld Türkiye 2022. The 6mt bus e-CENTRO and the 19mt articulated bus e-KENT became the highlights of the exhibition. Otokar continues to promote its products and capabilities in the defense industry, in d
Slide 17: Backlog
16 BACKLOG Million Backlog 3000 2500 2000 1500 1417 1000 500 85 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 6M Year End Year End Year End Year End Year End Year End Year End Year End Year End TL USD EUR Total TL Appx. The above backlog amounts and deliveries will be held directly by Otokar
Slide 18: Why Otokar
17 WHY OTOKAR Leader Strong export performance and a R&D capabilities and flexible Products that are intellectual Market leader global company production capability property rights Otokar across its respective In addition to its strong export New product development and The share of Otokar design bu
Slide 19: Financial Indicators
18 FINANCIAL INDICATORS Balance Sheet (000 TL) 30.06.2022 Current Assets 5.327.863 S.T. Liabilities 4.231.428 Fixed Assets 2.975.738 L.T. Liabilities 2.511.732 Shareholders Equity 1.560.441 Total Assets 8.303.601 Total Liabilities 8.303.601 Income St. (000 TL) 2022 6M 2021 6M Change (%) Net Sales 3.
Slide 20: Financial Indicators
19 FINANCIAL INDICATORS Million Revenue 5000 4500 4000 3500 3000 2500 2000 1500 1000 500 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 TL USD
Slide 21: Financial Indicators
20 FINANCIAL INDICATORS Million Revenue (Quarterly) Revenue (Cumulative) 2.357 Million 2400 5000 4.509 1.834 4500 1900 4000 3.651 3500 1400 1.294 3000 2.675 983 2500 877 815 900 2000 1.860 1500 1.294 877 400 1000 120 95 154 144 486 117 92 500 237 332 92 239 120 -100 0 2021 1Q 2021 2Q 2021 3Q 2021 4Q
Slide 22: Financial Indicators
21 FINANCIAL INDICATORS Million TL NET PROFIT Million TL NET PROFIT 1200 1.047 1200 1000 1.042 1000 800 800 525 618 600 600 543 120 400 342 400 289 200 200 201 107 0 2021 2022 0 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total 20042005200620072008200920102011201220132014201520162017201820192020
Slide 23: Financial Indicators
22 FINANCIAL INDICATORS SALES Million TL 5.000 4.509 4.500 4.000 3.500 3.270 3.000 2.909 2.500 2.199 2.000 1.500 1.239 1.000 710 500 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Domestic Export Total Export revenues amounted to 3.270 million TL, increased 49% compared to
Slide 24: Financial Indicators
23 FINANCIAL INDICATORS Revenue (Quarterly) Million TL Million TL Revenue (Cumulative) 2.600 5.000 2.357 4.500 2.100 4.000 3.500 3.651 1.600 1.406 3.000 1.100 951 2.500 2.238 2.000 600 1.500 1.413 1.000 100 500 2021 1Q 2021 2Q 2021 3Q 2021 4Q 2022 1Q 2022 2Q -400 0 2021 3M 2021 6M 2021 9M 2021 YE 20
Slide 25: Financial Indicators
24 FINANCIAL INDICATORS Sales (000 TL) 2022 6A 2021 6A Change (%) Domestic 1.413.603 670.351 111% p Export 2.237.517 1.189.539 88% p Total 3.651.120 1.859.889 96% p 2021 2021 6M 2022 6M Domestic Domestic 36% 27% Domestic Export 39% Export 73% Export 61% 64% Otokar domestic sales 111% and export sa
Slide 26: Financial Indicators
25 FINANCIAL INDICATORS 800 700 Production & Sales Units 600 500 400 300 200 100 0 Production Sales Production Sales Production Sales Bus Trucks Armoured 2021 1Q 2021 2Q 2021 3Q 2021 4Q 2022 1Q 2022 2Q Revenue Distribution Truck Truck 3,3% Truck 5,3% Other 3,4% Other 12,4% 12,8% Other 12,6% Bus Bus
Slide 27: Financial Indicators
26 FINANCIAL INDICATORS Gross Profit Operating Profit Million TL Million TL 2.000 45,0% 1.200 30,0% 1.800 40,0% 1.600 1.000 25,0% 35,0% 1.400 30,0% 800 20,0% 1.200 25,0% 1.000 600 15,0% 20,0% 800 600 15,0% 400 10,0% 400 10,0% 200 5,0% 200 5,0% 0 0,0% 0 0,0% 2009 2010 2011 2012 2013 2014 2015 2016 20
Slide 28: Financial Indicators
27 FINANCIAL INDICATORS Million TL Gross Profit Operating Profit Million TL 900 45,0% 600 35,0% 800 40,0% 500 30,0% 700 35,0% 25,0% 600 30,0% 400 500 25,0% 20,0% 300 400 20,0% 15,0% 300 15,0% 200 10,0% 200 10,0% 100 5,0% 100 5,0% 0 0,0% 0 0,0% 2021 1Q 2021 2Q 2021 3Q 2021 4Q 2022 1Q 2022 2Q 2021 1Q
Slide 29: Financial Indicators
28 FINANCIAL INDICATORS Ratios 2016 2017 2018 2019 2020 2021 2021 6M 2022 6M ROE 28,7% 35,1% 42,2% 55,1% 61,4% 69,6% 41,3% 34,8% EBITDA Margin 10,4% 10,4% 13,5% 17,8% 23,1% 20,2% 19,9% 15,4% Net Margin 4,3% 5,6% 9,8% 14,5% 21,3% 23,1% 21,3% 14,9% Net Debt/Equity 1,6 1,7 1,4 0,9 1,3 1,2 1,7 1,9 Net D
Slide 30: Financial Indicators
29 FINANCIAL INDICATORS Million TL Capital Expenditures 250,0 202,7 200,0 150,0 116,0 100,0 50,0 39,8 42,6 25,8 28,0 16,3 15,8 16,0 21,5 12,4 10,2 15,1 8,8 0,0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 6M
Slide 31: Financial Indicators
30 FINANCIAL INDICATORS Million TL Net Debt/EBITDA 3.500 4,00 3,59 2.971 3,50 3.000 3,00 2.500 2,55 2,69 2,50 2.000 2,36 2,30 1,97 1.734 1,93 2,00 1.500 1.321 1,90 1,34 1,50 1.106 1.000 913 1,00 556 672 473 534 580 500 391 432 303157 227 0,50 155 170 186 0 0,00 2014 2015 2016 2017 2018 2019 2020 202
Slide 32: Financial Indicators
31 FINANCIAL INDICATORS Million TL BORROWINGS 2.000 1.800 1.901 1.600 1.635 1.400 1.200 1.261 1.000 1.117 979 800 875 600 400 509 514 500 548 425 200 274 254 76 106 5 190 207 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 6M S.T. Borrowings L.T. Borrowings Exchange rate risk and liquidity are moni
Slide 33: Financial Indicators
32 FINANCIAL INDICATORS Dividend Yield Million TL 600 10% 550 9% 8% 8% 500 500 8% 450 7% 400 6% 7% 400 6% 6% 350 5% 5% 300 4% 5% 4% 250 3% 4% 3% 3% 200 200 3% 150 2% 2% 100 2% 100 64 80 72 72 60 70 50 48 1% 7 20 15 0 0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Dividend D
Slide 34: Financial Indicators
33 FINANCIAL INDICATORS Stock Performance Market Capitalization Million TL 12.000 11.494 11.000 10.000 9.000 8.000 7.000 6.000 5.000 4.000 3.000 2.000 1.000 0 Jan-18 Jan-19 Jan-20 Jan-21 Jul-21 Jan-22 Jul-17 Jul-18 Jul-19 Jul-20 Jul-22 Oct-20 Oct-17 Oct-18 Oct-19 Oct-21 Apr-18 Apr-19 Apr-20 Apr-21 A
Slide 35: R&D and Testing Capabilities
34 R&D AND TESTING CAPABILITIES Otokar R&D Center houses a Climatic Test Chamber with Dynamometer, the one and only of its kind in Turkey, and among the top few in Europe, and Turkey’s the highest capacity hydraulic road similator as well as Turkey’s the largest and the world’s best state-of-the-art
Slide 36: R&D and Testing Capabilities
35 R&D AND TESTING CAPABILITIES Otokar and Milrem Robotics Otokar added electric bus e-Kent C and Turkey's first electric- signed a teaming agreement to powered armored combat vehicle Akrep IIe to it’s prdoduct explore opportunities for range, which both were developed by it’s own R&D. unmanned and
Slide 37: Alternative Fueled Vehicles
36 ALTERNATIVE FUELED VEHICLES DORUK HIBRA DORUK DG KENT DG DORUK ELECTRA Turkey’s first hybrid bus Turkey’s first natural gas 12 m CNG bus Turkey’s first electric bus powered mid-sized bus E-Kent C AKREP IIe 12 m electric bus Turkey’s first electric armoured vehicle
Slide 38: Sustainability
37 SUSTAINABILITY Otokar listed in the BIST Sustainability Index for the sixth consecutive term Otokar considers its sustainability strategy, protecting domestic capital structure and the goal of profitability, its sensitivity to the environment, human and society, its focus on universal human right
Slide 39: Sustainability Model
R&D and Innovation for Continuous and Sustainable Development Qussr neuer 16 Bs sa steoac © Product Quality se * Product Life Cycle Ra ¥, © Minimizing the Impact of Supply and Value Chains 7 faensars FaRTE cus a <P Sustainable and Quality Products * Applying New Technologies Se oe ee 16 fesiame ¢ Al
Slide 40: Corporate Governance
39 CORPORATE GOVERNANCE Rating of Adaptation to Corporate Governance Principles Weight Rating Shareholders 25% 95,92 Public Disclosure & Treansperancy 25% 96,19 Stakeholders 15% 97,13 Board of Directors 35% 94,10 Total 100% 95,53 Otokar, as publicly disclosed with the material disclosure 59th Ordina
Slide 41: Contact
tokar Investor Relations Department Otokar Investor Relations Department Atatiirk Cad. No:6 Arifiye 54580 Sakarya otokarir@otokar.com.tr Dogan Finance, Investor Relati H.Gillgah Mutlu Investor Relations and Corporate Governance Section Manager Emre Altug kinler@otokar com.tr gmutlu@otokar.co m.tr ea
Otokar Otomotiv ve Savunma Sanayi A.Ş. — H1 2022 Earnings Presentation on 6ix