Otokar Otomotiv Ve Savunma Sanayi A.s. · BIST:OTKAR
Otokar Otomotiv Ve Savunma Sanayi A.s — H1 2017 Earnings Presentation
72 slides from Otokar Otomotiv Ve Savunma Sanayi A.s's earnings presentation, Aug 7, 2017
Slide 1: Prepared based on 2017 1H financial results
(07.08.2017) Prepared based on 2017 1H financial results 1
Slide 2: Agenda
Agenda ABOUT US FINANCIAL INDICATORS • INTRODUCTION LONG-TERM OBJECTIVES • VISION & MISSION • FINANCIAL STATEMENTS & RATIOS • BRIEF HISTORY • SUSTAINABLE GROWTH • PRODUCTION-SALES- • SHAREHOLDER STRUCTURE • GROWTH WITH PRODUCTS WHICH REVENUE-BACKLOG LICENSE RIGHTS BELONG TO OTOKAR • PRODCUTION PLANT
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 and in more than 60 countries Turkish Armed Forces’ leading supplier and exporter of land plat
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, and to provide continued satisfaction for its clients, employees, and shareholders with total excellence philosophy. Mission • Otokar’s primary mission is to de
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 Million TRY/USD TL USD Revenue 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 6 LONG-TERM OBJECTIVES
Slide 7: Partnership Structure
Partnership Structure Ünver 45% Holding 25% *Other 30% *27% Listed *3% Other 7 ABOUT US
Slide 8: Production Plant
Production Plant 552,000 m2 plant, approximately 2200 employee Certificates Capacity of ISO 9001 Quality Standard 3700 Land Vehicle ISO 14001 Environmental Standard 900 Tactical Armoured Vehicle ISO 10002 Customer Satisfaction Quality Standard 5000 Autobus + Minibus ISO 27001 Information Security Ma
Slide 9: Employee Profile
Employee Profile 2193 Employee White- Blue- collar Collar 684 1509 684 White-Collar Personnel 550 R&D Centre Personnel Engineer 232 Tank Other 260 290 Other 452 9 ABOUT US
Slide 10: Number of Employee
Number of Employee 2500 2000 1500 1000 500 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1H 10 ABOUT US
Slide 11: Revenue per Employee
Revenue per Employee 800 TL 700 TL 600 TL 500 TL 400 TL 300 TL 200 TL 100 TL 0 TL 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 11 ABOUT US
Slide 12: Product Range
Product Range Commercial Vehicles Defense Industry Public Transport Logistic Vehicles Light Truck Models Models Models Models FRUEHAUF / OTOKAR OTOKAR ATLAS LAND ROVER DEFENDER / ARMOURED KENT / DORUK / PERSONAL CARRIER / URAL / COBRA / SULTAN / POYRAZ / COBRA II / KAYA / KAYA II / KALE / M-2010 / C
Slide 13: 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! 13 ABOUT US
Slide 14: Otokar Buses
Otokar Buses POYRAZ A wide product range SULTAN / NAVIGO from intercity transport to personnel DORUK / VECTIO and tourism transport TERRITO Special Products KENT Researches for Alternative fuels KENT ARTICULATED 14 ABOUT US
Slide 15: POYRAZ
POYRAZ The new small bus with low operating costs and very economic fuel consumption, designed for service transport 15 ABOUT US
Slide 16: SULTAN / NAVIGO
SULTAN / NAVIGO • Turkey’s best-selling small bus • Different models for intercity transport, service and tourism transport 16 ABOUT US
Slide 17: DORUK / VECTIO
DORUK / VECTIO • Turkey’s market leader in medium-sized buses • “Grand Award” prize in Europe • Different models for intercity transport, service and tourism transport 17 ABOUT US
Slide 18: TERRITO
TERRITO The 12-meter bus developed for the European market 18 ABOUT US
Slide 19: KENT
KENT • Turkey’s most preferred 12 m. intercity bus • 2 Design Award in Europe and Turkey 19 ABOUT US
Slide 20: KENT ARTICULATED
KENT ARTICULATED Kent Articulated bus was launched at Busworld Exhibition, Belgium in 2015. 20 ABOUT US
Slide 21: Alternative Fueled Buses
Alternative Fueled Buses 2007 2009 2011 2012 DORUK Hibra DORUK DG KENT DG DORUK ELECTRA Turkey’s first Turkey’s first natural 12 m CNG bus Turkey’s first electric hybrid bus gas powered mid-sized bus bus 21 ABOUT US
Slide 22: Logistic Vehicles
Logistic Vehicles About 25 thousands of semi-trailer that provides transportation service in the roads of the world! 22 ABOUT US
Slide 23: Trailer
Trailer Curtainsider Trailers Van Type Trailer Tanker Trailer İnternal 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 24: Curtainsider Trailer
Curtainsider Trailer Customer-oriented solutions in the transportation of dry load 24 ABOUT US
Slide 25: Van Type Trailer
Van Type Trailer For 14 years, most commonly preferred refrigerated trailer in Turkey for transport of perishable goods in hygienic and safe condition 25 ABOUT US
Slide 26: Tanker
Tanker • Turkey’s first ADR certificated trailer • Wide product range and proficiency 26 ABOUT US
Slide 27: Light Truck
Light Truck Otokar GA Kas = ABOUT US
Slide 28: ATLAS
ATLAS A light truck, with high payload capacity and low operating cost 28 ABOUT US
Slide 29: Defence Industry
Defence Industry More than 29.000 military vehicle serving in 5 continents and in more than 30 countries 29 ABOUT US
Slide 30: 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 31: APC (Armoured Personnel Carrier)
APC (Armoured Personnel Carrier) Actively in use in 12 countries including Turkey 31 ABOUT US
Slide 32: AKREP
AKREP Otokar’s armoured tactical wheeled vehicle which is successful on Internal Security Operations, low silhouetted and quick The optimal solution on issues such as strategic areas and border control, convoy protection and patrol 32 ABOUT US
Slide 33: COBRA
COBRA Armoured tactical vehicle which has worldwide competitiveness with its unique design, mobility, survivability and superior protection 33 ABOUT US
Slide 34: COBRA II
COBRA II The new member of COBRA family the most well- known vehicle of Otokar... Large internal volume, high protection. 34 ABOUT US
Slide 35: URAL
URAL Otokar’s new armoured tactical wheeled vehicle that is suitable for safety and internal security usage. 35 ABOUT US
Slide 36: 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 36 ABOUT US
Slide 37: KAYA II Personnel Carrier
KAYA II Personnel Carrier The mine resistant personnel carrier vehicle that consists of single cabin with its monocoque body 37 ABOUT US
Slide 38: KALE Mine Resistant Vehicle
KALE Mine Resistant Vehicle Mine resistant personnel carrier 38 ABOUT US
Slide 39: ARMA
ARMA ARMA is new generation modular multi-wheel configuration armoured vehicle with high level of ballistic and mine protection 39 ABOUT US
Slide 40: ARMA 6X6
ARMA 6X6 Arma 6x6, with its large internal volume, amphibious capability and low silhouette 40 ABOUT US
Slide 41: ARMA 8x8
ARMA 8x8 Armoured combat vehicle ARMA 8x8, provides high protection and large internal volume 41 ABOUT US
Slide 42: 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 42 ABOUT US
Slide 43: 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. 43 ABOUT US
Slide 44: Land Rover Defender
Land Rover Defender A worldwide brand in tactical vehicles. 44 ABOUT US
Slide 45: Otokar Turret Systems
Otokar Turret Systems • Since 1989, Otokar has been working on turret systems to meet the needs and 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 integr
Slide 46: ALTAY Project
ALTAY Project Otokar is the PRIME CONTRACTOR of Turkish Main Battle Tank Project ALTAY. 46 ABOUT US
Slide 47: ALTAY Project
ALTAY Project The request for Altay serial production proposal document was released and Otokar was invited to the tender. 47 ABOUT US
Slide 48: R&D
R&D Otokar’s R&D, establishment dates back to 1970’s, today, designing and manufacturing Turkey’s vehicle. Otokar’s R&D works for products whose intellectual rights belong to itself, with the vision of having and dominating the technology. 48 ABOUT US
Slide 49: 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 49 ABOUT US
Slide 50: 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 50 ABOUT US
Slide 51: Otokar Test Centres
Otokar Test Centres One of the world’s most advanced and modern ballistic laboratories and mine testing equipments 51 ABOUT US
Slide 52: Balance Sheet
Balance Sheet 30.06.2017 Total Assets (TRY) Total Liabilities&Shareholders Equity (TRY) Current Assets 1.485.791 S.T. Liabilities 867.126 Fixed Assets 353.375 L.T. Liabilities 762.594 Shareholders Equity 209.446 Total 1.839.166 Total 1.839.166 52 FINANCIAL INDICATORS
Slide 53: Income Statement
Income Statement TRY thousands (IFRS) 30.Jun.2017 30.Jun.2016 Net Sales 961.228 693.670 Cost of Sales (742.962) (518.673) Gross Profit 218.266 174.997 Operating Costs (133.898) (119.995) Operating Profit 84.368 55.002 Finacial Expenses (57.509) (36.323) Profit Before Taxes 28.080 18.691 Taxes 0 (2.9
Slide 54: Net Profit
Net Profit Million TRY Net Profit 120 100 80 60 40 20 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2016 2017 1H 1H 54 FINANCIAL INDICATORS
Slide 55: Cash Flow Statement
Cash Flow Statement TRY thousand (IFRS) 30.Jun.2017 30.Jun.2016 Cash and Cash Equivalants at the begining of the period 38.598 62.960 Net cash provided by operating activities (254.019) (16.810) Net cash used in investing activities (42.697) (31.808) Pre-financing cash flow (296.716) (48.618) Net ca
Slide 56: Working Capital
Working Capital TRY thousands 30.Jun.2017 31.Dec.2016 Current Assets 1.485.791 1.449.932 S. T. Liabilities 867.126 1.066.339 Working Capital 618.665 383.593 56 FINANCIAL INDICATORS
Slide 57: Net Financial Debts
Net Financial Debts TRY TRY 30.Jun.2017 31.Dec.2016 30.Jun.2017 31.Dec.2016 thousand thousand Cash and S.T. Bank Loans 60.027 38.598 145.480 4.672 Equivalents Trading Securities L.T. Bank Loans 0 0 721.436 425.447 Other Total Financial 0 0 866.916 430.119 Debts Total Financial 60.027 38.598 Assets T
Slide 58: Financial Ratios And Margins
Financial Ratios And Margins Financial Ratios 2017 1H 2016 1H Margins 2017 1H 2016 1H Current Ratio 1,71 1,29 Gross 22,7% 25,2% Margins Liquidity Ratio 1,16 0,76 Operating Return On Equity 13,4% 8,3% 8,8% 7,9% Margin Return on Assets 1,5% 0,9% EBITDA 11,9% 11% Cur.Assets/Tot.Assets 81% 78% Margin Sh
Slide 59: Margins
Margins Margins 35,0% 30,0% 25,2% 25,0% 22,7% 20,0% 15,0% 11,9% 10,0% 11,0% 8,8% 7,9% 5,0% 2,9% 2,3% 0,0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2016 1H 2017 1H Gross Margin Operating Margin EBITDA Margin Net Margin 59 FINANCIAL INDICATORS
Slide 60: Production Units
Production Units 6.000 5.000 4.000 3.000 2.000 1.000 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2016 2017 1H 1H 60 FINANCIAL INDICATORS
Slide 61: Revenue Distribution
Revenue Distribution COMMERCIAL TRY 168,3 Mio – 22% DOMESTIC TRY 759,5 Mio DEFENCE TRY 451,7 Mio – 60% 2017 1H 79% OTHER TRY 139,5 Mio - 18% TRY 961,2 Mio COMMERCIAL TRY 90,8 Mio – 45% EXPORT TRY 201,7 Mio DEFENCE TRY 82,3 Mio – 41% 21% OTHER TRY 28,6 Mio – 14% COMMERCIAL TRY 153,6 Mio
Slide 62: Backlog
Backlog TOTAL BACKLOG EUR 36 Mio + USD 24,7 Mio DOMESTIC EXPORT COMMERCIAL DEFENCE INDUSTRY COMMERCIAL DEFENCE INDUSTRY EUR 36 Mio USD 24,7 Mio 62 FINANCIAL INDICATORS
Slide 63: Capital Expenditures
Capital Expenditures Capital Expenditures 30.000 25.000 TRY Thonsands 20.000 15.000 10.000 5.000 0 2009 2010 2011 2012 2013 2014 2015 2016 63 FINANCIAL INDICATORS
Slide 64: Stock Performance
Stock Performance 350% 300% 250% 200% 150% 100% 50% 0% -50% OTKAR % BIST100% 50% 40% 30% 20% 10% 0% OTKAR % BIST100% -10% 64 FINANCIAL INDICATORS
Slide 65: Dividend
Dividend TRY Thousand 100.000 8% 9% 7% 8% 80.000 8% 7% 80.000 5% 100.000 72.000 6% 60.000 64.000 4% 60.000 5% 4% 3% 3% 48.000 4% 40.000 3% 2% 20.000 2% 20.400 15.000 1% 7.200 0 0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 Dividend Dividend Yield 65 FINANCIAL INDICATORS
Slide 66: Market Capitalisation
1.000 1.500 2.000 2.500 3.000 3.500 0 500 TRY million Aug-12 Nov-12 Feb-13 May-13 Aug-13 Nov-13 Feb-14 May-14 Market Capitalisation Aug-14 Nov-14 66 Feb-15 May-15 Aug-15 Nov-15 Mcap --> TRY 2.988 mio Feb-16 May-16 Aug-16 Nov-16 Feb-17 May-17 Aug-17 FINANCIAL INDICATORS
Slide 67: Growth With Products Which License Rights Belong to OTOKAR
Growth With Products Which License Rights Belong to OTOKAR 96% The share of Otokar designed vehicle sales in turnover. 269 Number of owned patents and industrial designs 67 LONG-TERM OBJECTIVES
Slide 68: Otokar Europe
Otokar Europe Otokar Europe was established in 2011 in France, in order to support bus sales in Europe. 68 LONG-TERM OBJECTIVES
Slide 69: Growth in Export Markets
Growth in Export Markets # of Countries 90 80 70 60 30 31 29 50 25 26 26 22 20 40 19 19 30 18 15 46 46 20 42 15 36 38 38 38 32 10 10 25 24 10 9 18 4 5 6 6 7 14 9 9 11 4 4 4 4 4 4 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 COMMERCIAL DEF
Slide 70: Growth in Export Markets
Growth in Export Markets Million USD 160 %55 140 %72 %39 120 %63 %57 %89 %53 100 %77 %65 %71 %61 80 %96 60 %45 %43 %47 40 %27 %37 %28 %35 %73 20 %29 %23 %4 %11 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 COMMERCIAL DEFENCE 70 LONG-TERM OBJECTIVES
Slide 71: Shareholders Value Creation
Shareholders Value Creation • Continuously increase revenue to ensure high and sustainably dividend yield • In the framework of our corporate governance and professional management principles, we aim to move further up our company's market value 71 LONG-TERM OBJECTIVES
Slide 72: Otokar Investor Relations
Otokar Investor Relations Doğan Seçkinler Please visit www.otokar.com.tr Finance & IR Manager +90 264 229 22 44 – 6300 dseckinler@otokar.com.tr Öktem Söylemez IR Officer +90 264 229 22 44 – 6316 osoylemez@otokar.com.tr Disclaimer: This presentation contains forward-looking statements that reflec
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