Aselsan Elektronik Sanayi Ve Ticaret A.s. Class B · BIST:ASELS
Aselsan Elektronik Sanayi Ve Ticaret A.s. Class B — Investor Presentation (February 2017)
33 slides from Aselsan Elektronik Sanayi Ve Ticaret A.s. Class B's investor presentation, February 2017
Slide 1: Investor Presentation February 2017
Investor Presentation February 2017
Slide 2: Global Military Spending, 2015
GLOBAL MILITARY SPENDING, 2015 EUROPE $328B 1,6% of GDP AMERICAS $678B 1,4% of GDP ASIA & OCEANIA $436B 1,9% of GDP AFRICA $37B 2,1% of GDP 2015 Top 10 Spenders Vs. Turkey (Billion $) 0 50 100 150 200 250 300 350 400 450 500 550 600 USA 596 China 215 Saudi Arabia 87,2 2015 TOTAL SPENDING: $1.676 B R
Slide 3: Balanced Growth of Turkish Military Spending
BALANCED GROWTH OF TURKISH MILITARY SPENDING 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,
Slide 4: Turkish Defense Industry Growing Over Years
TURKISH DEFENSE INDUSTRY GROWING OVER YEARS Defense Sector Revenue Defense Sector Export Revenue 10,00 2,50 1,86 1,93 8,00 2,00 Billion US $ 1,57 Billion US $ 6,00 5,08 5,10 1,50 4,76 4,90 1,26 4,38 1,09 3,71 4,00 3,09 1,00 0,83 0,85 2,90 0,78 2,44 0,62 2,00 0,50 0,00 0,00 2007 2008 2009 2010 2011 2
Slide 5: ASELSAN Continuing to Climb Up
ASELSAN CONTINUING TO CLIMB UP ASELSAN Global Defense Ranking 50. 58. 62. 67. 74. 76. 80. 86. … 20XX … … 90. 93. 2014 2015 2013 97. 2012 2011 2010 2009 2008 2007 2006 Source: Defense News Top 100 Worldwide List 5
Slide 6: ASELSAN – The Only Defense Company Listed on BIST
ASELSAN – THE ONLY DEFENSE COMPANY LISTED ON BIST Turkish Armed Forces Foundation BIST 84,58 % Free Float 15,30 % Other 0,12% 6
Slide 7: Main Shareholder - Turkish Armed Forces Foundation (TAFF)
MAIN SHAREHOLDER - 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. • TAFF owns several defense companies operating
Slide 8: 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 8
Slide 9: 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 10: Affiliates – Local
AFFILIATES – Local MİKROELEKTRONİK Ownership : 85% Partner: İTÜ ETA ASELSAN PRECISION OPTICS Participation: 2010 (Founded in 2006) Ownership: 50% Assets: $2,0 M Partner: Sivas Optik Malzemeleri Foundation: 2014 İSTANBUL Assets: $11,8 M MİKROELEKTRONİK ANKARA SİVAS ASELSANNET ASELSAN HASSAS OPTİK ROK
Slide 11: Affiliates – Global
AFFILIATES – Global KAZAKHSTAN ASELSAN ENGINEERING (KAZAKHSTAN) Ownership: 49% ASELSAN-BAKU (AZERBAIJAN) Partner: Kazakhstan Engineering Foundation: 2011 Ownership: 100% Assets: $40,4 M Foundation: 1998 Assets: $1,6 M KAZAKHSTAN ASELSAN ENGINEERING ASELSAN BAKÜ ASELSAN MIDDLE EAST ASELSAN MIDDLE EAS
Slide 12: Sustainable and Innovative Human Capital
SUSTAINABLE AND INNOVATIVE HUMAN CAPITAL Technicians Engineers 26% 62% Total Employees : 5.174 Engineers : 3.178 Support 5% Administrative Staff • University-industry cooperation 7% • Projects carried out with universities • Internship and co-op opportunities for high school and university students
Slide 13: An R&D Company
AN R&D COMPANY ASELSAN will not pay any corporate taxes till 2023 due to tax incentives on R&D activities. Million TL R&D Spending 1.243 1200 280 1000 912 807 800 728 200 147 143 600 963 400 660 712 585 200 0 2013 2014 2015 2016 Client Financed Self Financed 13
Slide 14: 2016 Full Year – Key Financial Figures
2016 FULL YEAR – KEY FINANCIAL FIGURES Net Sales: +36% (Jan-Dec); last quarter +74% (Oct-Dec) New Contracts Awarded: 9,5 Billion TL Backlog: 22,975 Million TL EBITDA increase (Jan-Dec): +%45 EBITDA margin: 19% (in line with the year-end target 18-20%) Net Cash Position: 675 Million TL (2015: 78 Mill
Slide 15: Financial Highlights
FINANCIAL HIGHLIGHTS 2015 4Q 2016 4Q ∆% (Million TL) 2015 2016 ∆% 932 1.618 74% Net Sales 2.780 3.768 36% 211 385 82% Gross Profit 626 923 47% 150 284 89% Operating Profit (EBIT) 392 606 55% 178 312 75% EBITDA 495 716 45% 67 406 506% Net Profit 213 795 273% 22,7% 23,8% ↑ Gross Profit Margin 22,5% 24
Slide 16: Increasing Trend in Net Sales
INCREASING TREND IN NET SALES Millon TL 4.000 3.768 3.500 CAGR 485 22% 2.780 3.000 2.535 2.500 2.171 548 460 2.000 1.633 398 1.502 1.212 3.283 1.500 1.038 83 272 78 2.233 1.000 669 706 102 2.075 513 1.773 29 87 1.419 1.361 500 16 935 1.135 497 639 619 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2
Slide 17: Significant Backlog Increase and New Contract Awards
SIGNIFICANT BACKLOG INCREASE AND NEW CONTRACT AWARDS Backlog History (Billion USD) New Contract Awards (Million USD) 2.881 $6,2 579 + 121% $4,3 $3,9 $3,7 1.305 1.154 1.293 912 296 351 285 505 954 1.148 627 491 2013 2014 2015 2016 2013 2014 2015 2016 >300 50-300 <50 Backlog Aging (Billion USD) Book-t
Slide 18: Backlog
BACKLOG BACKLOG DISTRIBUTION (CLIENT) Gendarmerie Ministry of National Sedef Shipyard Defense ROKETSAN 16% General Directorate of Civil Registration and Nationality TAI 9% Caspian Region Other Americas and 2% 13% Europe Exports 1% 7% Middle East Undersecretariat for 4% Defense Industries 55% BACKLOG
Slide 19: Prospective Projects
PROSPECTIVE PROJECTS • Air Defense System Modernization Serial Production • HAVASOJ (Stand-off Jammer) • Long Range Air Defense Missile System 19
Slide 20: Prospective Projects
PROSPECTIVE PROJECTS • MILGEM I-Class Frigate • Turkish Fighter Aircraft Development (TF-X) • ALTAY Tank Serial Production 20
Slide 21: Improved Margins and Optimized CAPEX
IMPROVED MARGINS AND OPTIMIZED CAPEX Gross Profit Margin EBITDA Margin 22,5% 24,5% 17,8%* 19,0% 2015 2016 2015 2016 *15,4% including one-off accounting adjustments CAPEX Free Cash FLow (Tangible + Intangible) (Million TL) (Million TL) 622 353 510 260 2015 2016 2015 2016 21
Slide 22: Strong Cash Flow and Net Cash Position
STRONG CASH FLOW AND NET CASH POSITION December 31, 2016 Net Cash Position Financial Debt 494 Million TL Cash & Cash Equivalents 1.169 Million TL Net Cash = Cash - Short/Long Term Debt 675 Million TL December 31, 2015 Net Cash Position Financial Debt 603 Million TL Cash & Cash Equivalents 681 Millio
Slide 23: Guidance
GUIDANCE ASELSAN’s guidance on 2017 year-end results: 2016 2017 Guidance Net Sales 3.768 Million TL ≥ 25% growth EBITDA Margin 19% 18-20% CAPEX 353 Million TL 500 Million TL 23
Slide 24: 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 25: Contact
CONTACT Contact Persons Address Okan TURAN ASELSAN Elektronik Sanayi ve Ticaret A.Ş. Chief Financial Officer 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.tr Investor Relations Manager E-
Slide 26: Appendix
APPENDIX Se 0G
Slide 27: Consolidated Balance Sheet (Million TL)
CONSOLIDATED BALANCE SHEET (MILLION TL) ASSETS 31.12.2016 31.12.2015 CURRENT ASSETS 5.069,5 3.092,8 Cash and Cash Equivalents 1.168,8 681,0 Trade Receivables 2.039,7 1.068,3 Other Receivables 84,7 48,2 Inventories 1.187,4 886,8 Prepaid Expenses 387,2 228,7 Other Current Assets 201,7 179,8 NON-CURREN
Slide 28: Consolidated Balance Sheet (Million TL)
CONSOLIDATED BALANCE SHEET (MILLION TL) LIABILITIES 31.12.2016 31.12.2015 CURRENT LIABILITIES 2.242,7 1.568,9 Short-term Financial Liabilities 306,2 357,8 Short-term Portion of Long-term Financial Liabilities 65,7 89,4 Trade Payables 1.052,9 577,2 Employee Benefit Obligations 36,8 21,6 Other Payable
Slide 29: Consolidated Balance Sheet (Million TL)
CONSOLIDATED BALANCE SHEET (MILLION TL) 31.12.2016 31.12.2015 EQUITY 3.691,5 2.840,7 Equity attributable to equity holders of the parent 3.691,0 2.840,2 Share Capital 1.000,0 500,0 Share Capital Adjustment 98,6 100,3 Other Comprehensive Income / Expense not to be Re-classified to Profit or Loss 219,
Slide 30: Consolidated Income Statement (Million TL)
CONSOLIDATED INCOME STATEMENT (MILLION TL) 01.01.2016- 01.01.2015- 31.12.2016 31.12.2015 PROFIT OR LOSS Revenue 3.768,1 2.780,4 Cost of sales (-) (2.845,1) (2.154,4) GROSS PROFIT 923 626 General administrative expenses (-) (150,7) (138,4) Marketing expenses (-) (83,8) (74,7) Research and development
Slide 31: Consolidated Statement of Cash Flow (Million TL)
CONSOLIDATED STATEMENT OF CASH FLOW (MILLION TL) 01.01.2016- 01.01.2015- 31.12.2016 31.12.2015 OPERATING CASH FLOW (OCF) 981 776 Net Profit for the Period 795 213 Depreciation and Amortization 110 103 Change in Inventory (150) 68 Change in Trade Receivables (991) 17 Prepaid Expenses (284) (207) Defe
Slide 32: Forward Looking Statements
FORWARD LOOKING STATEMENTS 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
Slide 33: Reliable.
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