Aselsan Elektronik Sanayi Ve Ticaret A.s. Class B · BIST:ASELS
Aselsan Elektronik Sanayi Ve Ticaret A.s. Class B — Aselsan — Investor Presentation (October 2024)
61 slides from Aselsan Elektronik Sanayi Ve Ticaret A.s. Class B's investor presentation, October 2024
Slide 1: Investor Presentation October 2024
Producing the best-in class products, Developing game-changing technologies, INVESTOR Growing by expanding our global reach. PRESENTATION October 2024 1/60
Slide 2: Agenda
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Slide 3: Agenda
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Slide 4: Türkiye and ASELSAN's Place in Global Defense
TÜRKİYE AND ASELSAN’S PLACE IN GLOBAL DEFENSE As being the 2nd biggest army in NATO, Türkiye has a healthy growth rate of defense budget. 2023 TOP 10 DEFENCE SPENDERS AND TÜRKİYE MILITARY SPENDING OF TÜRKİYE (5 YEAR AVERAGES) (Billon $) (Billon $) 16,00 USA 916 China 14,00 296 Russia 109 12,00 India
Slide 5: Shareholder Structure
SHAREHOLDER STRUCTURE Shareholder Structure Turkish Armed Forces Foundation (TAFF) ASELSAN is the biggest defense company TAFF BOARD OF TRUSTEES listed on BIST and it is the only quoted company among TAFF subsidiaries. -President (Chairman) -Vice President Turkish Armed -Minister of National Defense
Slide 6: Board of Directors and Board Committees
BOARD OF DIRECTORS AND BOARD COMMITTEES Board of Directors Corporate Audit Risk Management Governance Committee Committee Committee • Our Company's Board of Directors consists of 9 members, 3 of whom are independent board members. • There is 1 female member on the board of directors. • There are no
Slide 7: Organizational Structure
ORGANIZATIONAL STRUCTURE ASELSAN BOARD OF DIRECTORS PLANNING & COORDINATION DIRECTORATE OF INTERNAL AUDIT THE BOARD OF DIRECTORS CABINET TO THE CEO CEO LEGAL AFFAIRS TECHNOLOGY & STRATEGY MANAGEMENT VICE CORPORATE MANAGEMENT VICE PRESIDENCY PRESIDENCY SUPPLY CHAIN MANAGEMENT VICE PRESIDENCY FINANCIA
Slide 8: Milestones
MILESTONES 1975- 1983 1979 1978 1980 1985 • ASELSAN was established in 1975 by TAFF in order to meet the product needs in the field of • ASELSAN's first campus, • Harp and data Macunköy facility, was • The first radio product • Export activities terminal devices military communications. was produced
Slide 9: Milestones
MILESTONES 2000- 2006 1997 1995 2005 • It was ranked 97th in the Defense News Top 100 list for the first • Türkiye’s first weapon system, the Pedestal time. • Significant successes have • With the 1919 cell Mounted Stinger System, was delivered. been achieved in the phones produced, • An R&D contrac
Slide 10: Milestones
MILESTONES 2017 2015 2016 • First Domestic Base Station Antenna to be used in 4.5G Network was developed by • ASELSAN's third campus, Gölbaşı • Spatial Address Registration System Data Production and ASELSAN. facility, was opened. Dissemination contract was signed with the Ministry of Interior. • A
Slide 11: Milestones
MILESTONES 2020 2021 • In order to fight the corona virus pandemic, ASELSAN delivered • HİSAR O+ serial production and Ka Band National Satellite hundred fully domestic and national ventilators within 14 days. Communication HUB System and Modem development contracts were signed. • Gücümüz Bir (Power
Slide 12: Milestones
MILESTONES • GÜRZ, GÖKSUR, GÖKDEMİR and GÖKBERK were • Our national platforms KAAN, HÜRJET, AKINCI, ALTAY, MİLGEM, TCG added to our air defense systems. Anadolu and PİRİ REİS were equipped with ASELSAN systems. • Helmet Integrated Imaging System TULGAR was • The serial production phase of the Siper
Slide 13: Vision and Mission
VISION MISSION To be a reliable, competitively By focusing primarily on the needs of the Turkish preferred, environmentally friendly, Armed Forces; to provide high value-added, and human-conscious technology innovative, and reliable products, and solutions to firm, which preserves its sustainable bo
Slide 14: Facilities
FACILITIES MACUNKÖY GÖLBAŞI AKYURT TEMELLİ GÖLBEK 132.014 m² INDOOR AREA 195.993 m² INDOOR AREA 126.676 m² INDOOR AREA 28.535 m² INDOOR AREA 3.294.000 m² TEST AREA 186.848 m² TOTAL AREA 665.802 m² TOTAL AREA 635.309 m² TOTAL AREA 381.730 m² TOTAL AREA • COMMUNICATION AND • RADAR AND ELECTRONIC • MIC
Slide 15: Field of Activities
FIELD OF ACTIVITIES TRANSPORTATION, COMMUNICATION MICROELECTRONICS RADAR and DEFENSE SYSTEMS SECURITY, ENERGY, INFORMATION GUIDANCE and ELECTRONIC TECHNOLOGIES AUTOMATION and TECHNOLOGIES ELECTRO-OPTICS WARFARE HEALTHCARE MILITARY AVIONIC & NAVIGATION RADAR SYSTEMS AIR & MISSILE DEFENSE SECURITY SYS
Slide 16: From Deep Ocean to Space
FROM DEEP OCEAN TO SPACE Our Systems are Directly Exported by ASELSAN and Also Integrated as Payloads Within Systems Exported by Other Turkish Defense Companies 16/60
Slide 17: TCG Preveze (Submarine) Payloads
TCG PREVEZE (SUBMARINE) PAYLOADS RADAR - EW SYSTEMS & RAM APPLICATION INTEGRATED COMMUNICATION SYSTEMS NAVIGATION SYSTEMS TORPEDO SONAR SYSTEMS COUNTERMEASURE SYSTEMS 17/60
Slide 18: MİLGEM (National Corvette) Payloads
MİLGEM (NATIONAL CORVETTE) RADAR & EW SYSTEMS PAYLOADS ELECTRO-OPTIC COMMUNICATION SYSTEMS SYSTEMS WEAPON SYSTEMS NAVIGATION SYSTEMS UNDERWATER AQUSTIC SYSTEMS 18/60
Slide 19: Altay Tank Payloads
ALTAY TANK MOBILITY PAYLOADS PROTECTION SYSTEMS FIRE POWER 19/60
Slide 20: Akıncı (Unmanned Combat Aerial Vehicle) Payloads
AKINCI (UNMANNED COMBAT AERIAL VEHICLE) PAYLOADS COMMUNICATION RADAR SYSTEMS SYSTEMS ELECTRONIC WARFARE GUIDED MUNITIONS SYSTEMS ELECTRO OPTIC SYSTEMS 20/60
Slide 21: ATAK Payloads
ATAK FLIGHT CONTROL & DISPLAY SYSTEMS PAYLOADS COMMUNICATION ELECTRO-OPTIC SYSTEMS SYSTEMS ELECTRONIC WARFARE SELF PROTECTION WEAPON SYSTEMS SYSTEM NAVIGATION SYSTEMS 21/60
Slide 22: KAAN (National Combat Aircraft) Payloads
KAAN (NATIONAL COMBAT AIRCRAFT) PAYLOADS TULGAR HELMET MOUNTED DISPLAY BÜHSET PROJECT BÜRFİS PROJECT INTEGRATED EO SYSTEM (BEOS) FLIGHT CONTROL SYSTEM (IMU) Kılavuz-40 System GUIDED MUNITIONS 22/60
Slide 23: Turksat 6A Payloads
TURKSAT 6A UZAY PLATFORMU PAYLOADS X-BAND TRANSPONDERS KU-BAND KU-BAND INET TRANSPONDERS TÜRKİYE ANTENNA X-BANT DOCON PAYLOAD INTERFACE KU-BAND RECEIVER UNIT 23 23/60
Slide 24: Rolling Stocks Subsystems
ROLLING STOCKS SUBSYSTEMS TRACTION CONVERTOR AND AUXALRY POWER UNIT EUROPEAN VITAL Signaling Systems Rolling Stocks Systems COMPUTER (EVC) TRACTION MOTOR DRIVER MACHINE INTERFACE (DMI) TRAIN CONTROL AND JURIDICAL RECORDER MANAGEMENT SYSTEM DOPPLER RADAR UNIT (JRU) 24/60
Slide 25: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS Attractive market fundamentals of • Government’s priority on development of local Turkish defense defense industry Indigenous • On-going geopolitical Türkiye’nin savunma harcamalarında high-tech • Accumulated know-how of tension ASELSAN as an engineering artış beklentisi ca
Slide 26: Local Affiliates
LOCAL AFFILIATES 17 LOCAL İSTANBUL ANKARA AFFILIATES ❖ AB Mikro Nano ❖ DASAL Havacılık Teknolojileri A.Ş. ❖ ASELSANNET ❖ İstanbul Finans ve Teknoloji Üssü ❖ ASELSAN Global SİVAS ❖ Mikroelektronik ❖ BİTES ❖ ASELSAN Sivas ❖ TÜYAR ❖ EHSİM ❖ ROKETSAN ❖ TEKNOHAB ❖ TR Eğitim ve Teknoloji ❖ ULAK Haberleşme
Slide 27: Foreign Affiliates & Offices
FOREIGN AFFILIATES & OFFICES ASELSAN POLAND ASELSAN ASELSAN KAZAKHSTAN ASELSAN UKRAINE BAKU ENGINEERING 4 A F F I L I AT E S ASELSAN BALKANS ASELSAN CYPRUS 3 ASELSAN ASELSAN ASELSAN PAKISTAN MIDDLE EAST SAUDI ARABIA SUBSIDIARIES ASELSAN LATIN AMERICA ASELSAN MALAYSIA 9 ASELSAN IGG ASELSAN INTEGRATED
Slide 28: Human Resources
HUMAN RESOURCES Employee Age Average As of 30.09.2024 11.116 employees 34 ACADEMIC DISTRIBUTION GENDER DISTRIBUTION LANE DISTRIBUTION OF ENGINEERS FEMALE %21 TECHNICIANS %27 % 57 Undergraduate % 38 Master’s Degree % 5 PhD & Post - PhD ADIMINISTRATIVE ENGINEERS %6 %64 SUPPORT %3 MALE %79 28/60
Slide 29: Talent Management
TALENT MANAGEMENT ASELSAN Vocational and Technical Anatolian High School Internship and Candidate Engineering Opportunities for High School and University Students Master's and Doctorate Program Incentives for Employees ASELSAN Academy Technology Projects with Universities Preferable Location and Em
Slide 30: Agenda
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Slide 31: ASELSAN at a Glance
ASELSAN AT A GLANCE Mcap One of the first 10 company in BIST with a market capitalization of USD 7,9 Billion New Contracts 3,2 billion USD of new contracts in the third quarter of 2024 Backlog Backlog of 12,6 billion USD in the third quarter of 2024 Export Focused Growth Export to 88 countries R&D P
Slide 32: Domestic Sales and Exports
DOMESTIC SALES AND EXPORTS MILLION TL Domestic Sales Exports 73.593 %10 66.860 6.472 70.000 10.227 60.716 60.000 8.006 50.000 40.000 67.121 30.000 52.710 %25 20.139 56.633 %24 16.104 %44 13.013 2.243 20.000 1.540 15.139 %66 1.574 %41 5.412 9.009 10.000 2.739 %41 3.850 889 17.896 485 784 11.439 14.56
Slide 33: 2024 3rd Quarter Financial Highlights
2024 3RD QUARTER FINANCIAL HIGHLIGHTS 3,2 Billion 12,6 Billion 60,7 +%13 %24 USD USD Billion TL New Contracts Backlog Revenue Increase in EBITDA EBITDA Margin Finansal Göstergeler 2024 3RD QUARTER FINANCIAL HIGHLIGHTS (Million TL) (TL) September'23 September'24 %∆ Net Sales 53.063 60.716 14 Gross Pr
Slide 34: IAS 29 Financial Reporting in Hyperinflationary Economies Effect
IAS 29 FINANCIAL REPORTING IN HYPERINFLATIONARY ECONOMIES EFFECT Million TL REVENUE Million TL EBITDA 70.000 16.000 60.716 14.396 60.000 54.418 14.000 53.063 12.697 12.714 50.000 12.000 40.000 10.000 32.067 30.000 8.000 7.153 6.000 20.000 4.000 10.000 0 2.000 0 0 0 2023 2024 2023 2024 2023 2024 2023
Slide 35: Backlog
BACKLOG Backlog (Billion USD) Book-To-Bill-Ratio 14 12,6 2,6 2,3 12 2,2 2,2 10,9 2,0 10 9,7 9,5 1,8 1,4 9,1 1,3 8,5 8,2 1,5 1,4 BACKLOG AGING 8 1,3 6,2 6,8 (BILLION USD) 6 0,9 1,0 2024* 1,8 - 2,1 4,3 2025 2,5 - 2,8 4 0,6 0,7 0,6 2026 2,5 - 2,8 2 0,2 2027 2,3 - 2,5 2028 ve sonrası 2,0 - 2,3 0 -0,2 *B
Slide 36: Enterprise Value and Backlog
ENTERPRISE VALUE AND BACKLOG 14 2,5 12,6 12 10,9 2,0 9,7 9,5 10 9,1 8,8 8,5 8,2 8 7,5 1,5 1,5 6,8 6,2 6 1,0 3,9 4,3 4,1 0,7 4 2,7 0,5 1,8 2,0 2 0,8 0,5 0,3 0,7 0,8 0 0,0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 3Ç Enterprise Value (Billion USD) Backlog (Billion USD) EV/Backlog Book-to-
Slide 37: New Contracts (Million USD)
NEW CONTRACTS (MILLION USD) 4.993 5.000 4.057 4.000 3.043 2.881 3.245 3.000 2.070 2.022 2.000 1.604 1.305 1.279 1.000 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 3Q >300 - 1.148 411 1.947 942 - 312 - 2.625 1.369 50-300 954 1.154 701 1.704 1.206 426 767 381 1.673 1.031 <50 351 579 958 406 895
Slide 38: New International Contracts (Million USD)
NEW INTERNATIONAL CONTRACTS (MILLION USD) 700 601 600 535 500 446 415 400 313 300 267 200 100 0 2019 2020 2021 2022 2023 2024 3Q 38/60
Slide 39: Major Projects Signed – As of 2024 Q3
MAJOR PROJECTS SIGNED – AS OF 2024 Q3 NAME/AREA OF THE PROJECT NAME OF THE CUSTOMER CONTRACT VALUE (USD) Supply of Military Equipment Ministry of National Defence 556 Million Naval Warfare Systems and Payloads of MİLGEM 9-12 Frigates TAIS Shipyards & STM Joint Venture 458 Million City Security Secre
Slide 40: 2024 3rd Quarter Backlog - Customer Distribution
2024 3RD QUARTER BACKLOG - CUSTOMER DISTRIBUTION TAIS OG and STM BMC %11,1 %6 MSB %5,5 Caspian Region TAI %22,6 %2,6 Europe and Americas Other %3,6 %5,2 Foreign %13,1 Africa %0,6 Middle East and Asia %6,3 Secretariat of Defence Industries %36,5 40/60
Slide 41: 2024 3rd Quarter Backlog
2024 3RD QUARTER BACKLOG BACKLOG DISTRIBUTION CURRENCY DISTRIBUTION OF BACKLOG CURRENCY DISTRIBUTION OF EXPENDITURES %5 %18 %12 %33 %20 %68 %95 %49 Defense Non - Defense TRY USD EUR TRY USD EUR 41/60
Slide 42: Development and Serial Production Projects
DEVELOPMENT AND SERIAL PRODUCTION PROJECTS PROJECT NAME Layered Air Defence Systems, Development and Serial Production Unmanned Surface Vehicle Development and Serial Production (MARLIN) Additional Tank Modernization Projects Kaan / Kızıl Elma / Hürjet / Anka Payloads MİLGEM / Open Sea Patrol Ship /
Slide 43: R&D Spending
R&D SPENDING ASELSAN is the 1st company in Türkiye by the number of R&D Projects and by the R&D employee number in 2023 Milyon USD Externally-Funded R&D Internally-Funded R&D 834 800 122 641 661 611 600 118 109 499 109 As a result of R&D 70 incentives, 400 ASELSAN will not pay 712 523 552 corporate
Slide 44: Capex / Revenue
CAPEX / REVENUE Million TL Intangible Assets Property, Plant and Equipment Total Capex / Revenue 24.000 %27 %24 %24 20.000 %21 %17 %17 %17 16.000 %18 3.193 %15 12.000 %12 5.746 6.875 %12 8.000 %9 11.583 %6 10.115 9.721 4.000 1.455 %3 780 1.221 2.051 0 %0 2020 2021 2022 (*) 2023 (*) 2024 3Q (*) (*) I
Slide 45: 2024 Guidance
2024 GUIDANCE 2024 2024 Guidance Guidance w/o IAS 29 w/IAS 29 (Nominal) (Real) Revenue Growth (%) > 70 > 10 EBITDA Margin (%) > 26 > 22 CAPEX (Billion TL) 12 14 45/60
Slide 46: Planned Investments
PLANNED INVESTMENTS Photon Detector EO FLIR Systems and Nanotechnology Facility Production Facility • Production and testing of gimbaled electro-optical systems and • Photon detectors and nanotechnology are used in electro- vision systems are carried out at Akyurt campus. In this context, optical sy
Slide 47: Planned Investments
PLANNED INVESTMENTS Defense System Technologies Radar System Integration and Production Production and Testing Facility Automation Center • The volume of business related to radar systems is expected to continue to increase in the coming period with the effect of the • The expectation that large pla
Slide 48: Ratings
RATINGS CORPORATE GOVERNANCE RATING CREDIT RATING LONG TERM NOTE SUB CHAPTER NOTE LONG TERM NATIONAL INTERNATIONAL FOREIGN AND Shareholders 89,59/100 NOTE HOLDER VIEW FOREIGN AND VIEW LOCAL LOCAL CURRENCY Public Disclosure and Transparency 98,72/100 CURRENCY CREDIT RATINGS Stakeholders 99,17/100 CRE
Slide 49: Agenda
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Slide 50: Sustainability Journey
SUSTAINABILITY JOURNEY 2008 1980’s 2004 2005 2007 • ASELSAN launched a scholarship program for • ASELSAN started its young talent • ASELSAN's first doctoral students who program, which is now called a Corporate • ASELSAN's first • ASELSAN's Ethical hold academic positions Yetenek. Governance Corpora
Slide 51: Sustainability Journey
SUSTAINABILITY JOURNEY 2017 2014 2016 • ASELSAN Academy Graduate Education • Following the launch of the Sustainability Index Program was launched in cooperation with within Borsa Istanbul, many activities that have been the Council of Higher Education. • ASELSAN Anti-Bribery and ongoing for a long
Slide 52: Sustainability Journey
SUSTAINABILITY JOURNEY 2020 2019 • The design of the Leadership Development School for • ASELSAN became one of the five companies that took place at the A-score the development of leadership competencies of level among the 54 companies that responded under the heading of Climate ASELSAN executives w
Slide 53: 2050 Net Zero Emission Targets in Sustainability Journey
2050 NET ZERO EMISSION TARGETS IN SUSTAINABILITY JOURNEY Ensuring that our goal is adopted by all our employees Management of all processes with the support of our through our awareness-raising activities Sustainability Ambassadors Minimizing the emission impact of our supply chain through projects
Slide 54: UN Sustainable Development Goals Aimed
UN SUSTAINABLE DEVELOPMENT GOALS AIMED ASELSAN’s Priorities Related SDGs ASELSAN’s Priorities Related SDGs Economic Social R&D and Innovation Occupational Health and Safety Product Quality and Safety Human Rights and Employee Rights Digital Transformation Career and Talent Management Supply Chain Ma
Slide 55: Contact Information
CONTACT INFORMATION Address ASELSAN Elektronik Sanayi ve Ticaret A.Ş. Mehmet Akif Ersoy Mah. İstiklal Marşı Cad. No:16 06200 Yenimahalle, Ankara Telephone 0850 828 1 828 Web www.aselsan.com.tr/en/investor-relations E-Mail aselsan.ir@aselsan.com 55/60
Slide 56: Agenda
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Slide 57: Consolidated IFRS Balance Sheet
CONSOLIDATED IFRS BALANCE SHEET ASSETS LIABILITIES (Million TL) 31.12.2023 30.09.2024 (Million TL) 31.12.2023 30.09.2024 CURRENT ASSETS 99.020 92.709 CURRENT LIABILITIES 68.173 61.036 Cash and Cash Equivalents 8.980 3.597 Short-term Financial Liabilities 25.553 30.193 Trade Receivables 27.978 26.856
Slide 58: Consolidated IFRS Income Statement
CONSOLIDATED IFRS INCOME STATEMENT (Million TL) 30.09.2023 30.09.2024 PROFIT OR LOSS Revenue 53.063 60.716 Cost of sales (-) (38.213) (41.945) GROSS PROFIT 14.850 18.771 General administrative expenses (-) (2.651) (3.534) Marketing expenses (-) (1.155) (1.479) Research and development expenses (-) (
Slide 59: Activity Fields of Our Affiliates, Subsidiaries and Offices
ACTIVITY FIELDS OF OUR AFFILIATES, SUBSIDIARIES AND OFFICES LOCAL FOREIGN Company Field of Activity Company Field of Activity Communication Systems, Security Systems, IT & Geographic ASELSAN BAKÜ Business Development, Sales, Maintenance and Repair ASELSANNET Information Systems, Health & Energy Syst
Slide 60: Disclaimer
DISCLAIMER With the Capital Markets Board of Türkiye Bulletin dated 28.12.2023 numbered 2023/81, CMB announced that issuers and capital market institutions shall prepare their annual financial statements ending on 31.12.2023 or later, in accordance with IAS 29 Financial Reporting in Hyperinflationar
Slide 61: Investor Presentation
Producing the best-in class products, Developing game-changing technologies, INVESTOR Growing by expanding our global reach. PRESENTATION October 2024 61/60