Investor Relations Presentation 30.06.2012 Agenda

INVESTOR RELATIONS PRESENTATION 30.06.2012 AGENDA

 Company Profile  Highlights of 2012  Financials  Market Evaluation  Annex  Otokar in 2015

2 ADAPAZARI / ARİFİYE PLANT

3 Otokar’s Profile Briefly Otokar

In early 90s, Otokar combined its armour In mid 80s, technology with its Otokar was Otokar experience in military After the merge with Launch of the new founded as manufactured vehicles by developing Istanbul Fruehauf midsize bus for 35 seats named Turkey’s first the first Turkish Turkey’s first 4x4 light- in 2002, trailers DORUK/VECTIO intercity bus armoured vehicle armoured tactical wheeled were added to the was on 4th quarter manufacturer. as a cash carrier. vehicles. product range. of 2007.

‘63 ‘70 ‘80 ‘87 ‘90 ‘95 ‘02 ‘03 ‘07 ‘08

In early 70s, Koç In 1987, Otokar The Public In 2003 Sultan Otokar signed Group became the started to offer of midibuses the agreement as Otokar was major shareholder manufacture 4x4 were added the prime contractor of realized the Altay Main Battle of Otokar and began tactical vehicles in 1995. to the Tank Project to design to manage the under license from commercial the first national tank of company. Land Rover-UK. product range. Turkey on 29 July 2008.

4 Otokar’s Profile Briefly Otokar

Being as the first designer and manufacturer of Otokar MINE upgraded its Otokar RESISTANT former Market Otokar added the TACTICAL Corporate Leader of Otokar upgraded its armoured VEHICLES in Management Turkey on upgraded former vehicle The first Turkey, Otokar rating of 7,94 to minibus, 7&9 its Corporate ARMA 8x8 TANK Test added the 8,12 in March meter mid Corporate Management to its Centre of armoured 2009 and cap sized bus Manageme rating of product Turkey was vehicle KAYA to Otokar ranked and trailer nt rating to 8,32 to 8,47 range in the established its product at 11th place categories 8,32 19 on 18 March 3rdquarter by Otokar in range. among 17 firms. in 4Q 2009. March 2010 2011. of 2011. Sakarya.

‘08 ‘09 ’10 ‘11 ‘12

Otokar The first Otokar’s M2010 was Otokar added Otokar Otokar The first entered in to Hybrid and first 12- launched to the armoured received R&D Europe SAS Electric-bus the CNG bus meter public the market vehicle ARMA Centre was of Turkey: Corporate models of transportati and Vectio 6x6 to its Document in established DORUK Management Doruk and on bus KENT 215T was product range Feb. 2011. in France in ELECTRA League in also the was awarded with in the 4th the 3rd was ISE with launch of launched in Grand Award quarter of quarter of produced by 7,94 rating Vectios with June 2009. in Busworld 2007. 2011. Otokar. on 20 March Euro 5 Engine Fair in 2008 was in 2008. October.

5 Otokar’s Profile Briefly Otokar

 Otokar is among the leading companies of Turkey on both commercial and defence industry sides with its 49 years’ experience.  Otokar is quoted in ISE since 1995 and 30% share of Otokar is traded on ISE.  Otokar’s capex volume is around 10-15 mio $ per annum. Otokar’s R&D activities is realized by over 300 engineers in its 1000m² R&D department.  Otokar has integrated logistic support for its customers: -In Turkey, at 7 regions, 179 authorized service stations. - At 20 countries Otokar vehicles are fully supported. - Otokar also presents spare part, driver training, maintenance training, technical literature and all kinds of aftersales support.  Since 1990 Otokar regularly attends in both defence industry & commercial fairs all over the world. It attended in 5 fairs in 2011.  Otokar realized over 1 billion $ defense industry deliveries including exports in last 21 years and 456 million $ of this derived from exports in last 8 years.

6 Otokar’s Profile Shareholders

UNVER KOÇ HOLDING HOLDING 25% 45%

FREE FLOAT 30%

7 Otokar’s Profile Product Range

COMMERCIAL VEHICLES DEFENCE VEHICLES . Land Rover 4x4 Land Vehicles . Minibus . Armoured Internal Security Vehicles

. Mid Cap Sized Bus . Mine Resistant Armoured Tactical Vehicle: KAYA

. Buses . 6x6 and 8x8 Armoured Tactical Vehicle:ARMA

. Armoured Tactical Vehicles . Trailer, Semi-trailer & Tankers

8 Otokar’s Profile Product Range

COMMERCIAL VEHICLES

. Minibuses

. Midibuses

. Buses

. Trailer/Semi-trailers, Tankers

9 Otokar’s Profile Product Range

ONE OF THE BIGGEST COMPANIES OF TURKEY IN COMMERCIAL VEHICLE INDUSTRY.

THE MARKET LEADER OF BUS CATEGORIES FROM 7 TO 12-METER.

ON COMMERCIAL SIDE OTOKAR HAS A WIDE PRODUCT RANGE CONSISTING OF MINIBUSES, MIDIBUSES AND BUSES FROM 5,5 METER TO 12 METER AND ALSO TRAILERS, SEMI-TRAILERS AND TANKERS.

10 Otokar’s Profile Product Range

Besides the success in commercial vehicles and the ability in special vehicles, Otokar proved its world class design and production capability in military tactical vehicles.

11 Otokar’s Profile Product Range DEFENCE PRODUCT RANGE

. Land Rover Defender

. Armoured Vehicles  Armoured Personnel Carrier  Scorpion  Cobra  Discreetly Armoured Station Wagon  Armoured Internal Security Vehicle  8x8 tactical armoured vehicle  Mine Resistant Troop Carrier: Kaya  Arma 6X6 and 8X8 . Tank in Near Future

12 Otokar’s Profile Product Range

OTOKAR

OTOKAR, LEADER COMPANY IN DESIGN, TEST, INTEGRATION AND PRODUCTION OF MILITARY TACTICAL VEHICLES, AFTER THE 21 YEARS DEFENSE INDUSTRY EXPERIENCE, SCORED ALMOST 1 BILLION USD DELIVERY INCLUDING EXPORTS.

AFTER THE MERGER OF ISTANBUL FRUEHAUF FACTORY AND ALSO THE LAND AND FACTORY PURCHASE OF FORMER OTOYOL AŞ, OTOKAR INCREASED ITS PRODUCTION AREA AND BECAME THE MOST IMPORTANT AND BIGGEST DEFENSE INDUSTRY COMPANY IN TURKEY.

13 Otokar’s Profile Recently Launched Products

.Doruk 230DG .Doruk 160LE Hibra .Vectio / Doruk 215T

.6X6 Armoured Tactical Vehicle: ARMA .8X8 Armoured Tactical Vehicle: ARMA

.Mine Resistant Armoured Tactical Vehicles: KAYA

.12-meter Low Floor Public Transport Vehicle: KENT 290LF .M2010 / Centro

14 Otokar’s Profile “Prime Contractor of the 1st National Main Battle Tank of Turkey”

.A feasibility study was performed so that a Main Turkish Battle Tank can be designed and produced locally with a genuine model to meet the needs. .A tender was opened for the preparation of the design and the prototype of the Main Turkish Battle Tank. .The result of this tender was announced on March 30,2007 and Otokar was honoured for the negotiations. .The agreement was signed on July 29,2008 at the manufacturing plant of Otokar in attendance of the Prime Minister Recep Tayyip Erdoğan. .The budget for design, prototype production, tests and qualification of the ALTAY Tank is declared to amount to USD 494 million. The period for this phase is 78,5 months. .The first mock-up of Altay was exhibited in IDEF-11. .The first prototype of Altay will be presented in Autumn 2012

15 Otokar’s Profile Research & Development R&D R&D activities have been attached great importance in Otokar since its foundation. In addition to extending the present product range, Otokar also applies a permanent R&D process in terms of designing military, semi-military and commercial original products in parallel with the demands of the domestic and foreign markets.

Otokar's small bus, Navigo, which has changed the small bus standards in Turkey, and Otokar's armored vehicles such as ZPT, Cobra, Kaya, Arma have been completely designed and developed by R&D Department. Otokar R&D Center, has an enclosed area of 1000 m², on the other hand, is equipped with prototype manufacture areas, special paint house, and Hydraulic Road Simulator enabling faster testing of the manufactured vehicles employing the state-of-the-art technology, test equipment and computer systems to create and evaluate information. Having proved itself in the realm of R&D, Otokar was awarded with "Award of New Articles" by the Undersecretariat of Foreign Trade in 1996 and with "Mimar Sinan University Industrial Design Honorary Prize" in 1999. Otokar's next goal is to design vehicles employing virtual reality simulations in computer environment, thus developing better quality products in a shorter period. Otokar received R&D Centre Document in Feb. 2011.

Otokar’s Profile Research & Development

Otokar R&D Center and Design Awards

.Jury’s Special Award for KENT bus, Busworld Fair 2011 .Otokar designed vehicles constitutes 85% of the total revenue .“Good Design Award”, Design Turkey 2010 for KENT 290LF .2009 Busworld Kortrijk European Coach and Bus Week (ECW) Grand Award in Midi Coach category for DORUK 215T .“Good Design Award”, Design Turkey 2008 for DORUK 190LE .Industrial Design “Honour Award” by Mimar Sinan University in 1999 ."Award of New Articles" by the Undersecretariat of Foreign Trade in 1996

17 ADAPAZARI / ARİFİYE PLANT

Total area 552.000 m² Total closed area 141.303 m² 18 Otokar’s Profile Dealership System

37 Midibus/Minibus Dealers (21 of which are abroad) 20 Trailer Dealers 179 Authorized Service Stations (68 of which are abroad)

19 Otokar’s Profile Export Markets

20 Otokar’s Profile Competitive Advantages

. Having products which the industrial . Unique in Defence Industry and ownership rights belong to Otokar

. Working with well known brand names . Product reliability in markets

. Flexible plant capacity . Capability to react urgent defence oriented orders . Ability to offer custom designs . Customer satisfaction guaranteed . Strategic location . Lower Logistic Cost

. Low engineering costs . Lower unit cost

. Test and Design Center . Shorter test time for vehicles

21 Otokar’s Profile Vision and Mission

 Developing its own technology

 Preserving the local and national identity of its own products.

 Targeting persistence satisfaction of customers, employees and partners with total excellence philosophy.

 Designing, manufacturing and marketing commercial vehicles and various defence industry products in line with the requirements of the customers with a worldwide competitiveness

 Sustainable growth by exports of commercial vehicles in Europe through dealers network; by increasing exports of defense vehicles; by increasing domestic market share

22 HIGHLIGHTS OF 2012

 The total revenues of Otokar in 1H 2012 were USD242,7 mio. Otokar generated USD20,6 mio net profit with a net margin of 8%.  Otokar’s 8,47 Corporate Management rating upgraded to 8,68 in March 2012.  Successful results in both armored tactical vehicle & auto&midibus sales:  The armored tactical vehicle sales increased by 32%.  Leadership in 7&9-meter bus market. Sultan (domestic version of Navigo) is the leader of 7mt midibus market of Turkey with its 56,3% share which was 43,2% at the end of 2011. Doruk (domestic version of Vectio) is the leader of the 9&10mt bus segment with its 54,8% share.  Deliveries and new orders from Defence Industry: As of June 2012, the backlog figure to be delivered in near future reached to USD 124,7 million consisting of 6x6 ARMA, 4x4 Cobra, Land Rover and APV vehicles.  Doruk Electra was manufactured as the first electric-bus of Turkey in 2012.

23 HIGHLIGHTS OF 2012

The 1st ELECTRIC-BUS of TURKEY: Doruk ELECTRA Sustainable Leadership in midcap sized Bus Market

Midibus-Bus - Niche Market

units Market Size 5.250 Market Share 56% 60% 4.516 49% 4.500 4.192 4.208 46% 50% 3.809 3.660 3.750 40% 40% 3.000 2.694 32% 2.372 22% 26% 2.208 30% 2.250 21% 1.498 17% 17% 1.483 1.568 20% 1.500 750 2% 10% 0 0% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 1H 1H

24 Otokar’s Financials Financial Indicators

2012 1H 2011 1H ta Revenue

EBITDA

Profit

Shareholders’ Equity

ROE

Gross gin

Operating gin

EBITDA gin

gin

urrent Ratio

tal # of Employees As of 30.06.2012 & 2011 (USD mio)

25 Otokar’s Financials Production Units

unit

3.000

2.000

2.845 2.036 1.000

0 1H'11 1H'12

26 Otokar’s Financials Sales Units-Distribution

units

2.700

1.443

825 1.800

898 900 1.103 66

164 25 138 122 9 0 1H'11 1H'12

TRAILER MIDIBUS&BUS MINIBUS ARM. T.V. L-ROVER

27 Otokar’s Financials Sales Unit-Comparison

units

EXPORT 3.600 DOMESTIC

247 2.700

184

1.800 2.462 1.900 900

0 1H'11 1H'12

28 Otokar’s Financials Revenue-Distribution

DISTRIBUTION OF REVENUES 2011 1H DISTRIBUTION OF REVENUES 2012 1H

EXPORT 18% EXPORT 25%

DOMESTIC DOMESTIC 82% 75%

29 Otokar’s Financials Revenue-Distribution

EXPORT DOMESTIC

USD thousand

250.000 45.678 61.732 200.000

150.000

202.745 100.000 180.927

50.000

0 1H'11 1H'12

30 Otokar’s Financials Revenue-Composition

14% 100% 22%

80% 31% 23%

60% 3% 0% 40% 38% 42%

20% 1% 1%

0% 1H'11 1H'12

TRAILER ARM. T.V. LR AUTO&MIDIBUS MINIBUS

31 Otokar’s Financials Margins

40%

45% 35%

30% 22,1% 23,2% 30% 25% 20% 13,1% 11,4% 15% 10,1% 8,5% 15% 9,0% 7,1% 10%

0% 0% 2003 2004 2005 2006 2007 2008 2009 2010 2011 1H'11 1H'12 1H'11 1H'12 Gross Margin EBITDA Margin EBITDA Margin Operating Margin Operating Margin Net Margin Gross Margin Net Margin

32 Otokar’s Financials Ebitda & Ebitda Margins

USD thousand EBITDA EBITDA Margin

60.000 16%

13,9% 10,2% 13,5% 13,1% 14% 50.000 12,6% 11,3% 11,4% 11,3%

54.254 12%

40.000 8,0% 10% 46.453 7,7%

9,7% 43.995

30.000 41.388 8%

24.500 6%

20.000

31.870

26.702

28.309 4% 24.500

10.000

16.961 2%

0 13.694 0% 2003 2004 2005 2006 2007 2008 2009 2010 2011 1H'11 1H'12

33 Otokar’s Financials Net Profit & Net Margin

USD thousand Net Profit Net Margin

35.000 14%

8,8%

12,3%

30.000 12%

7,3%

32.816 32.260 25.000 10%

29.463 6,7% 8,5% 20.000 26.880 7,1% 8% 7,2%

6,2%

15.000 4,0% 6% 3,3%

4,1% 20.593 17.709

10.000 21.887 4%

15.453

5.000 2%

13.870 6.972

0 5.818 0% 2003 2004 2005 2006 2007 2008 2009 2010 2011 1H'11 1H'12

34 Otokar’s Financials Dividend Performance

35 Otokar’s Financials Stock Performance

OTKAR ISE-100 As of June 30 2011

45 80.000 40 70.000 35

60.000 30 50.000 25 40.000 20

OTKAR (TL) 30.000 15 10 20.000 5 10.000

0 0

01/06 02/06 04/06 05/06 06/06 08/06 09/06 11/06 12/06 02/07 03/07 04/07 06/07 07/07 09/07 10/07 11/07 01/08 02/08 04/08 05/08 07/08 08/08 09/08 11/08 12/08 02/09 03/09 05/09 06/09 08/09 09/09 10/09 12/09 01/10 03/10 04/10 06/10 07/10 08/10 10/10 12/10 01/11 02/11 04/11 05/11 06/11 08/11 09/11 11/11 12/11 02/12 03/12 05/12 06/12

36 Otokar’s Financials MCAP

USD million MCAP USD 397 mio

700

600

500

400

300

200

100

37 Otokar’s Financials MCAP

MCAP USD 397 mio (30 June 2012) USD million

600

500

400

300

200

100

Jul-07 Jul-08 Jul-10

Oct-07 Oct-09 Oct-10

Jan-06 Jan-08 Jan-10 Jan-11

Apr-06 Apr-07 Apr-08 Apr-10 Apr-11

Jun-06 Jun-07 Jun-09 Jun-10 Jun-11 Jun-12

Feb-06 Feb-07 Feb-08 Feb-09 Feb-11 Feb-12

Sep-06 Sep-07 Sep-08 Sep-09 Sep-11

Dec-06 Dec-08 Dec-09 Dec-10 Dec-11

Mar-07 Mar-09 Mar-10 Mar-12

Nov-06 Nov-07 Nov-08 Nov-11

Aug-06 Aug-08 Aug-09 Aug-10 Aug-11

May-06 May-08 May-09 May-11 May-12

OTOKAR KARSAN ASUZU

38 Otokar’s Financials Capital Expenditure

USD thousand

60.000

50.000 61.917

40.000

30.000

15.179 20.000 11371 10.867 8.022 8.138 5550 10.000 4.873 3.281 1.084 1.143 2.570 2.575 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2011 2012 1H 1H

39 ANNEX

 Summary Profit & Loss Statement (IFRS)

 Summary Balance Sheet (IFRS)

 Summary Cash Flow Statement (IFRS)

 Most recent Sales Volume and Production Figures

 Summary Working Capital

40 ANNEX SUMMARY-Profit&Loss Statement

41 ANNEX SUMMARY-Balance Sheet

42 ANNEX SUMMARY-Cash Flow Statement

43 ANNEX SUMMARY-Cash Flow Statement

44 ANNEX SUMMARY-Working Capital

45 Otokar in 2015

  

46 CONTACTS

 Hüseyin Odabaş Assist.Gen.Manager (Finance) (90 264) 229 22 44 – 6000 [email protected]

 Yasemin Orhon Finance Section Manager (90 264) 229 22 44 – 6210 [email protected]

 Ö.Ahmet Özerol Finance Section Investor Relations Assistant (90 264) 229 22 44 – 6213 [email protected]