Aselsan Elektronik Sanayi Ve Ticaret A.s. Class B · BIST:ASELS
Aselsan Elektronik Sanayi Ve Ticaret A.s. Class B — Investor Presentation (May 2016)
33 slides from Aselsan Elektronik Sanayi Ve Ticaret A.s. Class B's investor presentation, May 2016
Slide 1: Investor Presentation May 2016
Investor Presentation May 2016
Slide 2: The World Military Spending by Region, 2015
THE WORLD MILITARY SPENDING BY REGION, 2015 EUROPE $328B AMERICAS $678B ASIA & OCEANIA $436B AFRICA $37B 2015 TOTAL SPENDING: $1.676 B % difference in spending 2014 vs 2015 (based on 2011 constant prices & exchange rates) ~-%4 ~%-15 ~%-26 ~%8 Source: SIPRI 2
Slide 3: Turkey's Military Spending vs GDP
TURKEY’S MILITARY SPENDING vs GDP As being the 2nd biggest army in NATO, Turkey has healthy growth rate of defense budget. MILITARY SPENDING as % of GDP (TURKEY) 3,00% 1.400 2,6% 2,5% Military Spending as % of GDP 2,4% 1.200 GDP (Billion $ - nominal terms) 2,3% 2,3% 2,3% 2,3% 2,2% 2,2% 2,1% 1.000 2,
Slide 4: 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 5: 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 6: 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% 6
Slide 7: 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 Nationa
Slide 8: 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% 8
Slide 9: 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 9
Slide 10: Field of Activities
FIELD OF ACTIVITIES TRANSPORTATION, COMMUNICATION INFORMATION MICROELECTRONICS RADAR, ELECTRONIC DEFENSE SYSTEMS SECURITY, ENERGY & TECHNOLOGIES GUIDANCE & ELECTRO-OPTICS WARFARE TECHNOLOGIES AUTOMATION COMMUNICATION AVIONIC RADAR SYSTEMS AIR & MISSILE DEFENSE SECURITY SATELLITE SYSTEMS ELECTRO-OPTI
Slide 11: Affiliates – Local
AFFILIATES – Local MİKROELEKTRONİK Ownership : 85% Partner: İTÜ ETA ASELSAN PRECISION OPTICS Participation: 2010 (Founded in 2006) Ownership: 50% Assets: $2,7 M Partner: Sivas Optik Malzemeleri Foundation: 2014 İSTANBUL Assets: $10,7 M MİKROELEKTRONİK ANKARA SİVAS ASELSANNET ASELSAN HASSAS OPTİK ROK
Slide 12: Affiliates – Global
AFFILIATES – Global KAZAKHSTAN ASELSAN ENGINEERING (KAZAKHSTAN) Ownership: 49% ASELSAN-BAKU (AZERBAIJAN) Partner: Kazakhstan Engineering Foundation: 2011 Ownership: 100% Assets: $35,8 M Foundation: 1998 Assets: $1,7 M KAZAKHSTAN ASELSAN ENGINEERING ASELSAN BAKÜ ASELSAN MIDDLE EAST ASELSAN MIDDLE EAS
Slide 13: Human Resources
HUMAN RESOURCES Technicians Engineers 27% 60% Total Employees : 5.048 Engineers : 3.049 Support 5% Administrative Staff • University-industry cooperation 8% • Projects carried out with universities • Internship and co-op opportunities for high school and university students • Masters and doctorate p
Slide 14: 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%. • 2.913 R&D Staff (2.535 R&D Engineers) • Cooperation with
Slide 15: Sales Revenue and Export
SALES REVENUE AND EXPORT Million USD 1.200 1.141 1.141 1.021 1.000 900 911 808 800 683 600 518 539 400 358 209 210 201 215 200 152 68 67 83 85 12 21 36 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1 Sales Revenue Export 15
Slide 16: Backlog
BACKLOG Our backlog is 4,4 Billion USD. Backlog History (Billion USD) $4,3 $4,4 $3,9 $3,7 2013 2014 2015 2016 Q1 16
Slide 17: Backlog
BACKLOG Backlog/Sales Revenue Book-to-Bill CAGR +29% 1,37 4,5 4,2 1,13 3,6 3,6 0,80 0,50 2012 2013 2014 2015 2012 2013 2014 2015 Management target is to maintain a backlog Immense improvement in book-to-bill ratio level of at least 3 x Sales Revenue. over the past 4 years with a CAGR of 29%. 17
Slide 18: Backlog Distribution (31.03.2016)
BACKLOG DISTRIBUTION (31.03.2016) Our target is to increase foreign sales. Gendarmerie BACKLOG DISTRIBUTION (CLIENT) Sedef Shipyard Ministry of National General Directorate of Civil Registration and Nationality Defense ROKETSAN Thyssenkrupp Marine Systems 4,8% TAI 10,0% Other Caspian Region 20,5% 2,
Slide 19: 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 19
Slide 20: Margins
MARGINS Gross Profit Margin EBITDA Margin 28,5% 22,8% 19,4% 14,8% 2015 Q1 2016 Q1 2015 Q1 2016 Q1 CAPEX Operating Cash FLow (Tangible + Intangible) (Million TL) (Million TL) 79 55 24 -204 2015 Q1 2016 Q1 2015 Q1 2016 Q1 20
Slide 21: Guidance & CAPEX
GUIDANCE & CAPEX ASELSAN’s guidance for 2016: • TL Sales Revenue Growth : 16-20% • EBITDA Margin : 18-20% • CAPEX : 340 Mio TL (tangible + intangible) (tangible: %45, intangible: %55) CAPEX (Tangible + Intangible) $120M $120M $110M $110M 2016 2017 2018 2019 21
Slide 22: 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 23: 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 24: Performance of ASELSAN vs. BIST-100 Index (2011-2016)
PERFORMANCE of ASELSAN vs. BIST-100 INDEX (2011-2016) ASELSAN reached a market value of USD 3,2 Billion as of 31.03.2016. 600 500 400 300 200 100 0 BIST 100 ASELSAN 31/12/2010=100 24
Slide 25: Contact
CONTACT Contact Persons Address Okan TURAN ASELSAN Elektronik Sanayi ve Ticaret A.Ş. Chief Financial Officer A. 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-
Slide 26: Appendix
APPENDIX
Slide 27: Consolidated Balance Sheet (Million TL)
CONSOLIDATED BALANCE SHEET (MILLION TL) ASSETS 31.03.2016 31.12.2015 CURRENT ASSETS 2.964,0 3.092,8 Cash and Cash Equivalents 340,8 681,0 Trade Receivables 1.124,2 1.068,3 Other Receivables 57,8 48,2 Inventories 967,2 886,8 Prepaid Expenses 290,0 228,7 Other Current Assets 184,0 179,8 NON-CURRENT AS
Slide 28: Consolidated Balance Sheet (Million TL)
CONSOLIDATED BALANCE SHEET (MILLION TL) LIABILITIES 31.03.2016 31.12.2015 CURRENT LIABILITIES 1.462,1 1.568,9 Short-term Financial Liabilities 301,1 357,8 Short-term Portion of Long-term Financial Liabilities 63,8 89,4 Trade Payables 485,3 577,2 Employee Benefit Obligations 19,3 21,6 Other Payables
Slide 29: Consolidated Balance Sheet (Million TL)
CONSOLIDATED BALANCE SHEET (MILLION TL) 31.03.2016 31.12.2015 EQUITY 2.908,3 2.840,7 Equity attributable to equity holders of the parent 2.908,0 2.840,2 Share Capital 500,0 500,0 Share Capital Adjustment 100,3 100,3 Other Comprehensive Income / Expense not to be Re-classified to Profit or Loss 201,9
Slide 30: Consolidated Income Statement (Million TL)
CONSOLIDATED INCOME STATEMENT (MILLION TL) 01.01.2016- 01.01.2015- 31.03.2016 31.03.2015 PROFIT OR LOSS Revenue 633,8 767,8 Cost of sales (-) (453,0) (619,0) GROSS PROFIT 180,8 148,8 General administrative expenses (-) (38,9) (31,0) Marketing expenses (-) (12,0) (12,5) Research and development expen
Slide 31: Consolidated Statement of Cash Flow (Million TL)
CONSOLIDATED STATEMENT OF CASH FLOW (MILLION TL) 01.01.2016- 01.01.2015- 31.03.2016 31.03.2015 OPERATING CASH FLOW (OCF) (204) 24 Net Profit for the Period 112 (44) Depreciation and Amortization 26 23 Change in Inventory (68) 13 Change in Trade Receivables (54) 146 Prepaid Expenses (56) (24) Deferre
Slide 32: 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 33: Reliable.
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