Aselsan Elektronik Sanayi Ve Ticaret A.s. Class B · BIST:ASELS
Aselsan Elektronik Sanayi Ve Ticaret A.s. Class B — Investor Presentation (October 2017)
31 slides from Aselsan Elektronik Sanayi Ve Ticaret A.s. Class B's investor presentation, October 2017
Slide 1: Investor Presentation October 2017
Investor Presentation October 2017
Slide 2: Global Military Spending, 2016
GLOBAL MILITARY SPENDING, 2016 (BILLION $) EUROPE $342 1,4% of GDP AMERICAS $683 1,4% of GDP ASIA & OCEANIA $456 1,8% of GDP AFRICA $39 2,0% of GDP 2016 Top 10 Spenders Vs. Turkey (Billion $) 0 50 100 150 200 250 300 350 400 450 500 550 600 650 USA 606,2 China 225,7 Russia 70,3 2016 TOTAL SPENDING:
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 2,7% 2,5% Military Spending as % of GDP 2,4% 1.200 GDP (Billion $ - nominal terms) 2,3% 2,3% 2,3% 2,2% 2,2% 2,2% 2,
Slide 4: Aselsan Continuing to Climb Up
ASELSAN CONTINUING TO CLIMB UP ASELSAN Global Defense Ranking 50. 57. 58. 62. 67. 74. 76. 80. 86. … 20XX … 93. 2016 90. 2014 2015 2013 97. 2012 2011 2010 2009 2008 2007 2006 Source: Defense News Top 100 Worldwide List 4
Slide 5: 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% 5
Slide 6: 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 7: 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) Teknokent Facilities (2004) Total Area 350.000 m2 Total Area 4.500 m2 Closed Area 75.000 m2 Closed Area 4.000 m2 7
Slide 8: Field of Activities
FIELD OF ACTIVITIES MICROELECTRONICS TRANSPORTATION, COMMUNICATION INFORMATION RADAR, ELECTRONIC DEFENSE SYSTEMS GUIDANCE & ELECTRO-OPTICS SECURITY, ENERGY & TECHNOLOGIES WARFARE TECHNOLOGIES AUTOMATION COMMUNICATION AVIONIC RADAR SYSTEMS AIR & MISSILE DEFENSE SECURITY SATELLITE SYSTEMS ELECTRO-OPTI
Slide 9: Affiliates – Local
AFFILIATES – Local MİKROELEKTRONİK Ownership : 85% Partner: İTÜ ETA ASELSAN PRECISION OPTICS Participation: 2010 (Founded in 2006) Ownership: 50% Assets: $2 M Partner: Sivas Optik Malzemeleri Foundation: 2014 İSTANBUL Assets: $15 M MİKROELEKTRONİK GEBZE/KOCAELİ YİTAL ANKARA YİTAL SİVAS ASELSANNET Ow
Slide 10: Affiliates – International
AFFILIATES – International KAZAKHSTAN ASELSAN ENGINEERING (KAZAKHSTAN) Ownership: 49% ASELSAN-BAKU (AZERBAIJAN) Partner: Kazakhstan Engineering Ownership: 100% Foundation: 2011 Foundation: 1998 Assets: $39,3 M Assets: $1,4 M KAZAKHSTAN ASELSAN ENGINEERING ASELSAN BAKÜ ASELSAN MIDDLE EAST ASELSAN MID
Slide 11: Sustainable and Innovative Human Capital
SUSTAINABLE AND INNOVATIVE HUMAN CAPITAL Technicians 26% Total Employees : 5.479 Engineers Engineers : 3.364 62% Support 5% Administrative Staff 7% • University-industry cooperation • Projects carried out with universities • Internship and co-op opportunities for high school and university students
Slide 12: 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. R&D Spending Million TL 1.243 1200 1.099 280 1000 912 217 807 800 200 147 713 600 157 963 882 400 660 712 556 200 0 2014 2015 2016 2016 3Q 2017 3Q Client Financed Self Financed 12
Slide 13: 2017 3rd Quarter – Key Achievements
2017 3rd QUARTER – KEY ACHIEVEMENTS New Contracts Awarded: 1.160 Million USD Backlog: 6,4 Billion USD Net Sales (Jan-Sep): +60% (TL) EBITDA increase (Jan-Sep): +60% EBITDA margin: 19% (in line with the year-end target 18-20%) 13
Slide 14: Financial Highlights
FINANCIAL HIGHLIGHTS (Million TL) 2016 3Q 2017 3Q ∆% Net Sales 2.150 3.448 60% Gross Profit 542 828 53% Operating Profit (EBIT) 332 567 71% EBITDA 414 663 60% Net Profit 389 828 113% Gross Profit Margin 25,2% 24,0% ↓ Operating Profit (EBIT) Margin 15,4% 16,4% ↑ EBITDA Margin 19,3% 19,2% ~ Net Profit
Slide 15: Increasing Trend in Net Sales
INCREASING TREND IN NET SALES Millon TL 4.000 3.768 3.448 3.500 CAGR 485 22% 2.780 + 60% 498 3.000 2.535 2.500 2.171 547 460 2.150 2.000 1.502 1.633 398 325 1.212 3.283 1.500 1.038 83 272 2.950 669 706 77 2.233 1.000 103 2.075 1.773 1.825 30 87 1.419 1.361 500 935 1.135 639 619 0 2007 2008 2009 2010
Slide 16: Strong Backlog and New Contract Awards
STRONG BACKLOG AND NEW CONTRACT AWARDS Backlog History (Billion USD) New Contract Awards (Million USD) 2.881 $6,2 $6,4 1.148 1.969 $4,3 $3,9 1.293 1.305 1.147 1.160 1.154 491 497 954 505 445 663 579 296 351 377 2014 2015 2016 2016 3Q 2017 3Q 2014 2015 2016 2017 3Q <50 50-300 >300 Book-to-Bill Ratio
Slide 17: Backlog
BACKLOG BACKLOG DISTRIBUTION STM Savunma Teknolojileri Müh. (CLIENT) Ministry of National ROKETSAN Sedef Shipyard Defense Gendarmerie 14% TAI 9% Other 17% Caspian Americas and Region Europe Exports 2% 2% 7% Undersecretariat for Middle East Defense Industries 3% 53% BACKLOG DISTRIBUTION COST DISTRIBU
Slide 18: Prospective Projects
PROSPECTIVE PROJECTS • Air Defense System Modernization Serial Production • HAVASOJ (Stand-off Jammer) • Long Range Air Defense Missile System 18
Slide 19: Prospective Projects
PROSPECTIVE PROJECTS • MILGEM I-Class Frigate • Turkish Fighter Aircraft Development (TF-X) • ALTAY Tank Serial Production 19
Slide 20: Sustainable Margins and Optimized Capex
SUSTAINABLE MARGINS AND OPTIMIZED CAPEX Gross Profit Margin EBITDA Margin 25,2% 24,0% 19,3% 19,2% 2016 3Q 2017 3Q 2016 3Q 2017 3Q CAPEX Operating Cash Flow (Tangible + Intangible) (Million TL) (Million TL) 362 2016 3Q 2017 3Q 504 184 2016 3Q 2017 3Q -402 20
Slide 21: Guidance
GUIDANCE ASELSAN’s guidance on 2017 year-end results: 2016 2017 3Q 2017 Guidance Net Sales 3.768 Million TL 3.448 Million TL ≥ 25% growth EBITDA Margin 19% 19% 18-20% CAPEX 353 Million TL 362 Million TL 500 Million TL 21
Slide 22: Remarkable Share Performance
REMARKABLE SHARE PERFORMANCE ASELSAN reached a market value of 8,65 Billion as of 30.10.2017. 550 549 500 450 400 350 300 250 200 150 127 100 50 0 BIST 100 ASELSAN 31/12/2014=100 22
Slide 23: 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 24: Appendix
APPENDIX
Slide 25: Consolidated Balance Sheet (Million TL)
CONSOLIDATED BALANCE SHEET (MILLION TL) ASSETS 30.09.2017 31.12.2016 CURRENT ASSETS 4.697,5 5.069,5 Cash and Cash Equivalents 332,2 1.168,8 Trade Receivables 1.554,1 2.039,7 Other Receivables 95,2 84,7 Inventories 1.704,2 1.187,4 Prepaid Expenses 756,1 387,2 Other Current Assets 255,7 201,7 NON-CURR
Slide 26: Consolidated Balance Sheet (Million TL)
CONSOLIDATED BALANCE SHEET (MILLION TL) LIABILITIES 30.09.2017 31.12.2016 CURRENT LIABILITIES 2.887,0 2.242,7 Short-term Financial Liabilities 313,1 306,2 Short-term Portion of Long-term Financial Liabilities 63,7 65,7 Trade Payables 1.583,9 1.052,9 Employee Benefit Obligations 45,2 36,8 Other Payab
Slide 27: Consolidated Balance Sheet (Million TL)
CONSOLIDATED BALANCE SHEET (MILLION TL) 30.09.2017 31.12.2016 EQUITY 4.443,2 3.691,5 Equity attributable to equity holders of the parent 4.442,7 3.691,0 Share Capital 1.000,0 1.000,0 Share Capital Adjustment 98,6 98,6 Other Comprehensive Income / Expense not to be Re- classified to Profit or Loss 21
Slide 28: Consolidated Income Statement (Million TL)
CONSOLIDATED INCOME STATEMENT (MILLION TL) 01.01.2017- 01.01.2016- 30.09.2017 30.09.2016 PROFIT OR LOSS Revenue 3.448,4 2.149,8 Cost of sales (-) (2.620,3) (1.608,2) GROSS PROFIT 828,1 541,6 General administrative expenses (-) (127,7) (105,4) Marketing expenses (-) (82,7) (49,8) Research and develop
Slide 29: Consolidated Statement of Cash Flow (Million TL)
CONSOLIDATED STATEMENT OF CASH FLOW (MILLION TL) 01.01.2017- 01.01.2016- 30.09.2017 30.09.2016 OPERATING CASH FLOW (OCF) (402) 504 Net Profit for the Period 828 389 Depreciation and Amortization 96 82 Change in Inventory (399) (241) Change in Trade Receivables (310) (297) Prepaid Expenses (525) (209
Slide 30: 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 31: Reliable.
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