Sustainability Report 2019

Sustainability Report 2019

TURKEY’S VALUES-BASED TECHNOLOGY LEADER CONTENTS

12 Highlights of 2019 38 Our Proven Professional 80 Our Innovation-Driven Product and 12 Our Fields of Operation Management Approach Service Approach 14 Our Key Sustainability Indicators 38 Corporate Governance 80 Product and Service Quality 40 Ethical Principles 82 Technology and Innovation Activities 16 ASELSAN at A Glance 41 Internal Audit 92 Information Systems and Information TURKEY IS OUR MOST VALUABLE ASSET! 16 ASELSAN in Brief 42 Anti-Bribery and Anti-Corruption Security 18 Message from the Chairman, 43 Risk Management ASELSAN is committed to meeting the needs of Turkey’s security President and CEO 44 Fighting the COVID-19 Pandemic 94 Our Value-Driven Supply Chain 20 Our Key Financial and Operational Management forces by using local resources while serving as a reliable business Indicators 48 Our Value-Driven Human 96 Supplier Evaluation 22 Our Organizational Structure Resources Approach 102 Localization Efforts with Local partner in global markets. Our Turkey-focused nationalization efforts 23 Shareholding Structure 50 Employee Profile Companies 24 Mission and Vision 52 Employee Rights are not confined to the defense industry. We also serve the nation’s 26 Awards 52 Social Diversity and Equal 104 Our Environmental Responsibilities 28 Milestones of Our Sustainability Opportunities 104 Environmental Management transportation, security, energy, and healthcare sectors. Journey 54 Recruitment 106 Climate Change and Carbon 57 Performance Development and Management 30 Our Future-Driven Sustainability Career Management 106 Emissions and Energy In 2019, we drove technological innovation while posting record- Approach 59 Remuneration and Fringe 110 Water Management 30 Our Sustainability Priorities Benefits 112 Zero Waste Management breaking financial results. This fiscal year was marked by new, 32 Our Stakeholder Map and 61 Employee Development and On- 116 Environmental Compliance Communication Approach the-Job Training Opportunities 117 Green Solutions in Operations sustainable achievements thanks to our 45 years of experience, highly 36 Memberships and Initiatives 64 ASELSAN Academy Graduate 117 Information Systems Supported Education Program 118 Facility Management skilled human resources, reliable suppliers, and bright young talent. 67 Internal Communication and Employee Motivation 120 Our Contribution to Social 72 Decent Working Conditions Development 73 Human Rights We hereby present our Sustainability Report along with our corporate 74 Occupational Health and Safety 78 Occupational Health and Safety values that drive us forward on our journey to sustainable success. Management System

ABOUT THE REPORT

With its 7th sustainability report in 2019, ASELSAN is disclosing its sustainability performance in a wide range of areas from economy and the environment to corporate governance and social investments to the stakeholders in its impact area. This report has been prepared by using the Core principles of the 2016 Standards by the Global Reporting Initiative (GRI) as a guide. Publishing Sustainability Reports on an annual basis, the Company also aims to build an interactive relationship with all its stakeholders, from employees to investors, based on the principles of transparency and accountability. The report includes ASELSAN’s economic, corporate, social and environmental sustainability activities in Turkey. The sustainability performances of the Company’s affiliates as well as operations abroad are excluded from the scope of this Sustainability Report 2019. ASELSAN’s Investor Relations Department has assumed the role of coordination within the Company’s organizational structure during the reporting process.

Questions, feedback and comments about the ASELSAN Sustainability Report 2019, available in Turkish and English, can be submitted to the following address: [email protected] Sustainability Report 2019

We boast almost 8,000 employees under our Our total turnover grew corporate umbrella. Each department at ASELSAN produces original and 44% to creative work aimed at demonstrating excellence. Every corporate unit has its own unique functions and ways of TRY 13 billion. doing business. The mighty ASELSAN family is composed of diverse units, our suppliers and stakeholders. Together we operate as a coherent whole. Sustainability Report 2019

We are explorers who have set out on a journey to develop innovations and discover new destinations, while EBITDA jumped understanding the fundamental 51% to need for, and driving change. TRY 2.9 billion. Innovation is a core value for ASELSAN. We challenge the ordinary, generate new ideas and boldly experiment with creative solutions. We monitor innovative approaches around the globe, while proactively embracing innovation. Sustainability Report 2019

ASELSAN inspires confidence among the people of Turkey and Net profit rose remains the country’s up by 45% to most reliable enterprise. TRY 3.4 billion. Our strategic advantage in being the companion of Turkey is the culture of trust we have established here. At ASELSAN, we walk the talk. We keep our promises while continuing to take significant leaps forward. Sustainability Report 2019

Development is a core value and passion for us. Our supplier network includes ASELSAN employs the best, most talented and more than knowledgeable people because we want to take big leaps toward development. Driven by our agile, dynamic and 5,000 enterprises. continuous-learning organization, we constantly challenge our capacity and capabilities. We also actively help our internal and external stakeholders to develop. Sustainability Report 2019

With the responsibility we assume, we only produce

excellence. We use resources efficiently, manage processes effectively, and We operate strive to be the best in everything we do. Our objective is to achieve the highest quality – always. We are a forward-looking 27subsidiaries company that looks at the current picture with a broader around the globe. perspective. ASELSAN is committed to consistently providing world-class quality. ASELSAN Highlights of 2019 Sustainability Report 2019 ASELSAN

OUR FIELDS OF OPERATION

Founded in 1975 by the Turkish Armed Forces Foundation in Ankara, ASELSAN is Turkey’s The Pride of Turkey in biggest cutting-edge technology, defense and security company. the Global Defense Industry...

Communications Radar and and Information Electronic Technologies Warfare Systems

Microelectronics, Transportation, Guidance and Security, Energy, Electro-Optics Automation and Health

Defense System Technologies

12 13 ASELSAN Highlights of 2019 Sustainability Report 2019 ASELSAN OUR KEY SUSTAINABILITY Championing the Sector in INDICATORS the Field of Sustainability

Consistent A World-Class Competent and Turkey’s OHS Practices A Responsible Social Growth and Professional Dynamic Human Largest R&D with a Focus Management Investments Overseas Business Corporate Resources Center on Business Approach Bolstered Volume Governance Continuity and Minimizing By Employee Approach Efficiency Environmental Participation Total Revenue Corporate Governance Total Number of Impacts (TRY Thousand) Rating: Employees: 44% Increase 9.29 7,649 Total TRY 2,975 Award Winner in the CDP Reporting A Social Million R&D Merit Category with a Score of A- Responsibility at the 2020 British 2019 Ratio of Shares Traded Number of “Talent A” Spending Movement Led Safety Awards Fundamental 13,012,551 in Borsa Istanbul: Employees: by Employees: Total TRY 2,659 Environmental 2018 25.80% 206 ASELSAN Social Million Externally- A Leading Awareness 9,008,516 Innovation Funded R&D Company with ISO Training for 6,251 Leaders (ASİL); Total EBITDA Spending 45001:2018 Employees and the Solidarity (TRY Thousand) Certification Foundation 1,546,473 kg 51% Increase Total TRY 316 in Turkey... established under of Waste Recycled Million Internally- the ASİL Structure Funded R&D at the Macunköy, 2019 Total Hours of Spending Training Delivered Akyurt and Gölbaşı 2,853,811 A Firm Step to Raise to Employees: Premises 2018 Intermediate Staff 158 Patent 46,803.46 hours 1,895,596 Applications with for the Defense Industry: ASELSAN Total Assets 68 Registrations Vocational and (TRY Thousand) Technical High 31% Increase School 2019 25,633,044 2018 19,473,631

14 15 ASELSAN ASELSAN At A Glance Sustainability Report 2019 ASELSAN

ASELSAN IN BRIEF

Founded in 1975 by the Turkish Armed ASELSAN consistently maintains its Turkey’s Largest R&D Company ASELSAN’s mission is to reduce Turkey’s Forces Foundation in Ankara, ASELSAN solid reputation for reliability in the As part of its corporate transformation reliance on foreign technology and ASELSAN is is Turkey’s biggest advanced technology, many countries across the globe that initiative launched in 2019, ASELSAN provide high added value to its domestic ASELSAN aims to taking confident defense and security company. ASELSAN select ASELSAN products and systems. placed employee opinions and feedback and foreign customers with innovative gain further large primarily serves the Presidency of In 2019, the Company registered strong at the heart of its operations. Areas in and reliable products. In the coming year, steps forward on Defense Industries and Turkish Armed growth, boosting turnover by 44% to need of transformation were identified ASELSAN aims to gain further large scale scale orders, while its transformation Forces, in addition to domestic and TRY 13 billion. In addition, ASELSAN and all employees were included in the orders, while expanding and remaining expanding and foreign customers. Active in a wide range posted record high exports of USD 330 transformation process. ASELSAN is Turkey’s largest R&D company. journey to become of business areas, ASELSAN operates in million, up 50% year-on-year. With each committed to establishing a cohesive remaining Turkey’s the defense, electronics, communication, passing year, ASELSAN further bolsters corporate culture of one big family, a global defense microelectronics, guidance, electro- its profile in international markets. uniting its staff around the common largest R&D industry player optics, radar and electronic warfare, ASELSAN is taking confident steps objective of achieving together. company. defense system technologies, security, forward on its transformation journey Throughout this transformation drive, with its 27 transportation, energy and healthcare to become a global defense industry ASELSAN has focused on the meaning subsidiaries and sectors. player with its 27 subsidiaries and branch and importance the Turkish nation offices, 11 of them overseas. attributes to the Company. branch offices, 11 of them overseas.

16 17 ASELSAN ASELSAN At A Glance Sustainability Report 2019 ASELSAN

MESSAGE FROM THE CHAIRMAN, PRESIDENT AND CEO

In 2019, ASELSAN successfully continued its corporate transformation efforts, which were launched in the previous year, while providing unwavering support to the committed and heroic operations of the Turkish Armed Forces both within and outside the borders of Turkey.

Esteemed Stakeholders, Firm Steps Towards Corporate Total Assets (TRY Billion) Transformation In 2019, the global economy expanded just The pride of the Turkish national defense 2.9% amid ongoing US-China trade wars, the industry, ASELSAN successfully continued its 25.6 adverse impact of Brexit on the Eurozone, corporate transformation efforts, which was and rising geopolitical risks in various parts launched in the previous year, while providing of the world, particularly the Middle East. unwavering support to the committed and heroic Meanwhile, Turkey’s economy started to operations of the Turkish Armed Forces both see positive results from the rebalancing within and outside the borders of the country. measures taken by government authorities ASELSAN’s corporate transformation activities in 2019 to counter the fluctuating foreign ranged from organizational innovation and Shareholders’ Equity (TRY Billion) exchange rates, growing inflation and rising digitalization to strategic human resources, fiscal interest rates of the prior year. By taking discipline and corporate communications to Stakeholder Participation Bolsters consumption of natural resources originating solidarity in times of natural disasters and macroeconomic balancing steps despite the brand and reputation management. This is how Our Corporate Transformation… from its operations. As of year-end 2019, pandemics. I believe that our Foundation 13.6 multidimensional risk environment facing we built a more agile organizational structure ASELSAN focuses on stakeholder ASELSAN sorted 1,546,473 kg of waste at will record many other achievements thanks the world economy, the Turkish economy and boosted our competitive edge, bolstering our participation to execute its corporate its Macunköy, Akyurt and Gölbaşı facilities. to the support of our stakeholders in the managed risks effectively. At ASELSAN, we ability to fulfill our duties and responsibilities. transformation drive more quickly and The Company also participated in the Zero coming year. firmly believe that Turkey will return to its effectively. Since 2018, ASELSAN has paid Waste Project and recovered 60 tons of sustainable growth path in the coming year. waste, which would otherwise be dumped, Turkey’s R&D Powerhouse close attention to employee opinion and Committed to Developing “Reliable We are formulating our strategic plans based from October 21 – December 31, 2019. Assuming critical roles and developing feedback via Employees’ Voice Workshops. Technologies” on this assumption. The Company has also fostered the spirit of Placing great importance on voluntary Since the establishment in 1975, ASELSAN EBITDA (TRY Billion) national and local electronic systems since employee participation in environmental its establishment, ASELSAN today is Turkey’s collaboration by hosting special events, such has developed “Reliable Technologies” Track Record of Success, Long-term as “Gücümüz Bir (Powerful Together),” with sustainability activities, ASELSAN provided for the Turkish national defense industry. R&D leader, producing advanced technologies 6,251 employees with basic environmental Stable Growth suppliers. These efforts are highly valued in Today, ASELSAN looks to the future with 2.9 in the defense industry as well as other sectors. awareness training as of end-2019. Since its founding in 1975, ASELSAN has By partnering with universities, SMEs and terms of localization and nationalization. confidence, thanks to the sustainability achieved sustainable growth by capitalizing subcontractors, ASELSAN has established an Meanwhile, Affiliates’ Workshop, hosted in approach integrated into all components of on its solid shareholding structure. In 2019, R&D ecosystem positioning itself at the center. collaboration with ASELSAN affiliates, has Social Investments with a Focus on its organizational structure. With its global we recorded numerous achievements once As of year-end 2019, ASELSAN’s R&D spending taken the Group’s synergy to a higher level. Our Core Business business development efforts, ASELSAN again. Turkey’s largest high-tech defense totaled TRY 2.98 billion, with TRY 316 million I would like to proudly announce a major has transformed into a brand recognized and security company, ASELSAN boosted of this amount internally-funded. Committed to Leaving a Better World for Future initiative that ASELSAN launched in 2019. around the world and a pioneer of advanced total revenues by 44% to TRY 13 billion boosting Turkey’s national production capabilities Generations... This effort is an extension of ASELSAN’s technology in Turkey. In 2020, ASELSAN during the year. In 2019, EBITDA jumped in every field, with a focus on the defense As a well-established company, ASELSAN positioning as a school for the Turkish will continue to be Turkey’s biggest R&D 51% to TRY 2.85 billion. ASELSAN posted industry, ASELSAN filed 158 patent applications, is committed to leaving its mark on the national defense industry. ASELSAN powerhouse. ASELSAN is a 50% increase in exports, which climbed 68 of them registered, in 2019. I would like to future. With this perspective, we incorporate Vocational and Technical High School to USD 330 million. While maintaining inform all our stakeholders that ASELSAN, a future generations in our stakeholder map. opened with a special curriculum addressing I would like to take this opportunity to Turkey’s R&D its strong cash position, ASELSAN also global brand in the defense sector with overseas Conducting all its business activities with the needs of the national defense sector thank all our stakeholders for supporting continued to create significant added affiliates, aims to take further steps to bolster a focus on environmental sustainability as under the MoU we signed with the Ministry ASELSAN’s achievements during its leader, producing value for Turkey. During the year, ASELSAN Turkey’s R&D capabilities in the coming year. part of this core commitment, ASELSAN of National Education. Furthermore, the sustainability journey in 2019. It is my successfully fulfilled its core responsibilities outperformed the Turkey average in the school is the number one choice of the sincere hope that our achievements will advanced to the Turkish national defense industry. We Keenly aware of its responsibilities as a world Carbon Disclosure Project (CDP) in 2019, country’s top students. ASELSAN Social continue to grow and expand in the future. continued to support our trusted suppliers, renowned brand in the defense industry, receiving an A- rating. A CDP Climate Innovation Leaders (ASİL) Solidarity technologies who span a vast geographic area, in every ASELSAN has embraced digital transformation. Change Leader in Turkey, ASELSAN is Foundation, set up under our leadership Kind regards, respect ¬– even in the face of a volatile global In 2019, we digitized a significant part of our regarded in the same category as other in December 2019, has also energized in the defense economy. business processes. ASELSAN aims to well international defense companies in the our social responsibility activities. The Prof. Dr. Haluk GÖRGÜN prepare its employees for digital transformation fight against climate change, a testimony Foundation undertakes activities in a wide Chairman, President and CEO of ASELSAN industry and other and run all company business processes digitally to its enviable position as a global brand. range of areas – from providing support for sectors. in 2020. The Company is focused on minimizing national education to contributing to social

18 19 ASELSAN ASELSAN At A Glance Sustainability Report 2019 ASELSAN

OUR KEY FINANCIAL AND OPERATIONAL INDICATORS

Income Statement (TRY Thousand) 2019 2018 Financial Ratios (%) 2019 2018 Despite fragile ASELSAN’s global markets, Revenue 13,012,551 9,008,516 Current Ratio 1.80 2.48 revenue per ASELSAN Gross Profit 3,371,733 2,211,092 Asset Turnover 0.58 0.58 employee rose by announced Operating Profit (EBIT) 2,612,595 1,724,205 Equity/Assets 0.53 0.52 21% year-on-year TRY 2.9 billion EBITDA 2,853,811 1,895,596 Fixed Assets/Assets 0.45 0.40 to TRY 1.9 million EBITDA and raised Profit for the Period 3,352,673 2,319,348 Return on Equity 0.28 0.31 in 2019. total revenues to Return on Assets 0.15 0.15 TRY 13 billion Balance Sheet (TRY Thousand) 2019 2018 in the 2019 Total Assets 25,633,044 19,473,631 Profit Margins (%) 2019 2018 operating period. Current Assets 13,976,498 11,616,681 Gross Profit 26 25

Total Liabilities 12,064,144 9,296,610 Operating Profit 20 19

Received Order Advances 2,418,376 2,929,158 EBITDA Profit 22 21

Equity 13,568,900 10,177,021 Profit for the Period 26 26

Operational Cash Flow 850,900 272,200 Revenue per Employee (TRY Million) 1.91 1.58

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In line with its OUR ORGANIZATIONAL SHAREHOLDING professional corporate STRUCTURE STRUCTURE governance policy, ASELSAN has successfully incorporated its sustainability approach into all BOARD OF DIRECTORS the components of its organizational structure. Our Shareholders Share Amount (TRY) Share Ratio (%) Planning & Coordination Office of the Board of Internal Audit ASELSAN Directors Turkish Armed Forces Foundation 845,825,624.46 74.20 conducts all its Free Float (BIST) 294,174,375.54 25.80 operations in Total 1,140,000,0000 100.0 line with the 25.80% of ASELSAN shares are traded in Borsa Istanbul. founding purpose CEO of its principal shareholder Free Float (BIST) Turkish 25,80% Cabinet of the CEO Legal Affairs Armed Forces Foundation, and serves to Financial Management Vice Presidency Corporate Governance Vice Presidency reduce Turkey’s reliance on foreign Technology & Strategy Management Vice Presidency Business Development & Marketing Vice Presidency resources in various industries, 100.0% mainly including the defense industry.

Transportation, Communications Microelectronics, Radar and Electronic Defense System Security, Energy, and Information Guidance and Warfare Systems Vice Technologies Vice Automation and Technologies Vice Electro-Optics Vice Presidency Presidency Healthcare Systems Presidency Presidency Vice Presidency 74.20% Turkish Armed Forces Foundation

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MISSION AND VISION

Mission Vision Propelled by its By focusing primarily To be a reliable, solid mission, on the needs of the competitively preferred, vision and Turkish Armed Forces; environment-friendly corporate values, to provide high-value- and human conscious ASELSAN takes added, innovative and technology firm, firm steps towards reliable products and which preserves its the future. solutions to both local sustainable growth and foreign customers in the global market in the fields of via the values created electronic technologies for stakeholders, and system integration; as well as serving continuing activities in its establishment line with global targets purposes. as well as increasing brand awareness and contributing to the technological independence of Turkey.

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AWARDS

In 2019, ASELSAN maintained its success curve in sustainability and received many awards at national and international platforms.

• Big Star Aselsan 2019 - First Place in • The 30th Ordinary General Assembly Turkey’s Fastest Growing Technology and Defense Industry Awards of ASELSAN was Companies (January 24, 2019) SASAD (Defense and Aerospace named a “Climate • Ankara Chamber of Industry - 50th Industry Manufacturers Association) - Anniversary Awards - Four Awards in Top Ranking Large Enterprise in terms Leader” at the the categories of Local Production, of Total Sales & First Place with the world’s most Added-Value Generated, R&D and Highest Volume of Subcontractor SANTEZ-TEYDEB (February 7, 2019) Orders among Total Sales (April 19, prestigious • British Safety Council International 2019) Safety Award-Award Granted for the • Most Preferred Companies Awards environmental OHS Activities in 2019 (March 10, - First Place in the Defense Industry project CDP. 2019) & Second Place in the Public Sector • CDP Awards (Carbon Disclosure (April 24, 2019) Project) - CDP Climate Leader Award • Universum - Most Attractive at the World’s Most Prestigious Employers for Turkish Youth - Top Environmental Project (March 27, Rank on the List of Most Preferred 2019) Companies for the Representatives • TESİD’s (Turkish Electronics of Two Generations in Engineering/IT Industrialists Association) (September 2019) 17th Innovation, Creativity and • The 7th Technology Development Entrepreneurship Awards - Innovative Zones and R&D Centers Awards - First Product Award (April 5, 2019) Place in the Category of Employers • The 2018 Successful Exporters Hiring the Highest Number of New Awards organized by the Defense R&D Staff & First Place in the Highest and Aerospace Industry Exporters’ R&D Spending Category (November Association - The Fourth Top Exporter 19, 2019) in the Defense and Aerospace Industry • From Ideas to Brands Award and Top Exporter in the Defense (November 28, 2019) Electronics category (April 15, 2019)

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MILESTONES OF OUR SUSTAINABILITY JOURNEY

Operating with the principle of continuous development since its establishment, ASELSAN has turned its uninterrupted success performance into a sustainability journey.

1980s 2012 2016 • Transition was made from the OHSAS • ASELSAN launched a young talents • The Early Detection and Management • ASELSAN’s Policy on Anti-Bribery and 18001 Occupational Health and Safety ASELSAN ranked program, which currently runs under of Risk Committee was formed at Anti-Corruption was released. Management System certification The “Compass among the top the name Talent-A. The program ASELSAN. received in 2009 to the ISO 45001 Program” was greatly contributed to ASELSAN’s • ASELSAN’s first Carbon Disclosure 2017 standard. This transition ranked four employers capability to attract a competent Report (CDP) was issued in parallel • ASELSAN Academy Graduate Program ASELSAN among the first companies launched to on the list of workforce sustainably. Indeed, with its goal of combatting global was launched in partnership with the to have deployed this practice in support new employees who joined the Company in climate change. Higher Education Council (YÖK). Turkey. “Turkey’s Most the 80s currently serve at the Senior • ASELSAN’s Academy Board was • Business development activities hires with their Management of ASELSAN. 2013 formed with the participation of Gebze at ASELSAN were gathered under Attractive • ASELSAN ranked among the top four Technical University, Middle East the Vice Presidency of Business adaptation to the Companies” 2004 employers on the list of “Turkey’s Most Technical University, Istanbul Technical Development and Marketing. company in 2019. • ASELSAN’s first Corporate Governance Attractive Companies” organized by University and Gazi University as well • The Zero Waste Project was initiated organized by an Principles Compliance Report was an international firm. The Company as ASELSAN representatives. in line with the goal of contributing to international firm issued. achieved a significant success by • The National and Local Product environmental sustainability. maintaining this trend in 2014, 2015, Development Board was established. • The “Compass Program” was launched in 2013. 2005 2017, 2018 and 2019. to support new hires with their • ASELSAN’s first Corporate Governance 2018 adaptation to the company. Committee was established. 2014 • ASELSAN kicked off Employees’ Voice • Design efforts were undertaken for the • ASELSAN Academy was established Workshops and “Our Future is With Leadership Development School to 2007 for the continuous development of the You” Events. boost ASELSAN managers’ leadership • ASELSAN’s first document on Ethical employees. • ASELSAN Social Innovation Leaders capabilities. Values and Code of Conduct was • After the launch of the Sustainability (ASİL) Platform was established. • “Our Values” Study was conducted. published. Index of Borsa İstanbul (BIST), • Internally-funded R&D Evaluation • “Back to Turkey” Project was initiated. numerous activities undertaken by Board was set up. • Occupational Safety Information 2008 ASELSAN for a long period were System (OSIS), which helped run • ASELSAN launched a scholarship reported as part of a Sustainability 2019 OHS activities at ASELSAN in a program for PhD students with an Report and published on the corporate • Partnering with the Ministry of standardized manner, was deployed. academic post at universities. website for the first time. National Education, the Company • The Company was granted an award in founded the ASELSAN Vocational and the Merit category of the International 2009 2015 Technical High School. Safety Awards 2020 organized by the • In line with ASELSAN’s goal of • All internal communications at • ASİL and ASİL Solidarity Foundation British Safety Council which evaluates reaching excellence in business ASELSAN, as well as a part of the were established. occupational health and safety processes, OHSAS 18001:2007 external communications were • Once the supply system was practices conducted in 2019. Occupational Health and Safety and moved to the Electronic Document transformed, ASELSAN acted • The Techno Adventure Project was ISO 14001:2004 Environmental Management System. proactively and improved the value- initiated. Management System certificates were added supply structure, supply obtained. processes and supplier development mechanisms.

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OUR SUSTAINABILITY PRIORITIES

ASELSAN established sustainability priorities for 2019 by taking the suggestions and expectations of ECONOMIC ENVIRONMENTAL SOCIAL various stakeholders, first and foremost employees, Economic Performance Energy Management Employment Structure into account. Market Presence Water Management Workforce Management

In addition to the themes handled within employees, into account. Handling Indirect Economic Impact Emission Management Occupational Health and the scope of “corporate transformation,” these priorities within the framework of ASELSAN’s ASELSAN established its priorities for GRI’s (Global Reporting Initiative) 2016 Safety Practices Waste Management sustainability the 2019 Sustainability Report by taking Standards, the Company has established the suggestions and expectations of the following priorities in no particular Education and Learning priorities are various stakeholders, first and foremost order of importance. Environmental Compliance Opportunities categorized under Diversity and Equal economic, social Opportunities and environmental themes. Anti-Discrimination Right of Organization and Collective Bargaining

Supply Chain Management

Safety Practices

Interaction with Communities

Product and Service Quality Management

Technology and Innovation Management

Information Systems and Information Security

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OUR STAKEHOLDER MAP AND COMMUNICATION APPROACH

ASELSAN’s sustainability practices serve as an important reference point that provides all the CUSTOMERS EMPLOYEES INVESTORS Regarding the ability to address For ASELSAN, experienced and Operating with a focus on creating entities on the Stakeholder Map with the chance for customers’ demands as number one competent human resources is an sustainable values for capital markets in benchmarking and comparison. priority, ASELSAN fulfills its primary indispensable component of the each period, ASELSAN comes together responsibility for customers by creating Company’s sustainable and successful with corporate investors in investor added value through R&D activities and performance. In 2019, the Company conferences and roadshows organized ASELSAN has included all individuals, excellence objectives, the Company has innovation. While offering the optimum organized numerous events to hear by intermediary organizations, as well as entities and companies, who directly incorporated customers, employees, solutions to customers, the Company employees’ expectations and suggestions in “face-to-face” meetings. In the 2019 Addressing or indirectly affect, or are affected investors, suppliers/subcontractors, has made it a duty to make a difference to boost employee motivation and operating period, the Company held customers’ by the Company’s activities in its universities, sectoral organizations, and deliver on all contractual obligations maintain the productivity of human 87 meetings on different platforms. stakeholder map. Encouraging non-governmental organizations, promptly and thoroughly. resources. “Employees’ Voice Workshops” Additionally, it adopted the principle of demands is stakeholder participation to achieve public institutions, society and future initiated by ASELSAN in 2018 were replying the e-mails of corporate and ASELSAN’s its business continuity and operational generations into its stakeholder map. ASELSAN maintains coordination with concluded in 2019 with the participation individual investors promptly and in customers throughout the projects’ of all employees. As part of the detail, while briefing them directly via foremost priority. lifecycle, as required by the nature of the workshops, ASELSAN heard employees’ phone calls. In this regard, the queries of sector where it operates. Furthermore, opinions and expectations on the 800 individual shareholders were replied the Company always remains in touch working environment at the Company, in writing or verbally in 2019. with customers via meetings and e-mail which incorporated these expectations or telephone communications. into its management plans. In the The Company found it useful to reply meantime, the HR Business Partnership individual investors’ phone calls via the Structure was established in 2019 to Interactive Voice System so as to ensure respond to employees’ expectations a more efficient time management in a more rapid and prompt manner. in phone calls with investors and to Staff Representatives successfully measure and report the efficiency of maintained their activities as a channel phone calls. Designed by the Company’s that conveyed employee opinions and internal sources, the Interactive Voice suggestions to the senior management. System was rolled out in November 2019.

Under internal communication activities, which serve as a pillar for stakeholder communication at ASELSAN, the Company has carried out active communication with employees via intranet and e-mail since 2019. Furthermore, both employees and external stakeholders keep abreast of ASELSAN’s activities via monthly “A-bulletins” and quarterly “ASELSAN Magazine.”

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OUR STAKEHOLDER MAP AND COMMUNICATION APPROACH OUR MEANS OF COMMUNICATION WITH ASELSAN has STAKEHOLDERS adopted ASELSAN places great importance on communication and interaction with internal a multi-faceted and external stakeholders, and implements a multi-faceted communication strategy making the most of digital transformation process. ASELSAN’s means and frequency of communication communication with stakeholders in its impact area are as follows: strategy.

SUPPLIERS UNIVERSITIES SECTORAL ASELSAN uses the Supplier Portal for Focusing on continuous development, ORGANIZATIONS AND communication with suppliers, who are ASELSAN develops close corporate NON-GOVERNMENTAL among the most important links in the value cooperation with universities through Customers Suppliers/Subcontractors Public Institutions chain for the Company. ASELSAN established Internally Funded R&D Projects, the ORGANIZATIONS ASELSAN injects momentum to Customer Satisfaction Surveys Supplier Portal (Constant) Conferences/Panels/Workshops a pioneering and innovative platform for the Candidate Engineer Program and the its corporate development through (In Every Project) Workshops and Training Courses (Constant) (More than Once A Year) purposes of fostering the bond with suppliers, ASELSAN Academy program. The partnerships with all sectoral and non- Website (Constant) “Gücümüz Bir (Powerful Together)” Platform Cooperation within the scope of legal boosting the effectiveness of localization Company maintained strong ties to governmental organizations operating Call Center (Constant) (Constant) regulations (When Needed) efforts, reducing Turkey’s reliance on foreign students in 2019. ASELSAN has had in the defense industry. A member of Exhibitions in and outside Turkey Supplier Satisfaction Survey (Once in a Year) resources, and run partnerships under an an active profile at the career fairs of the leading local and international (More than Once A Year) Power Union Summit (Periodically) integrated structure. Named “Gücümüz universities for many years. Accordingly, it organizations of the defense industry, Bir (Powerful Together);” the platform was attends the regional career fairs organized ASELSAN is represented on local and launched in April 2020. The platform enables by the Human Resources Office of the international sectoral platforms by the the Company to carry out such activities as Presidency every year where the paths of senior management and employees. receipt of quotes, management of quality the Company and the potential ASELSAN Employees Universities Society process, product procurement, training, employees of the future may cross. Employee Satisfaction Survey Conferences/Panels/Workshops Website (Constant) inspection processes, supplier scorecard and Spurring a great deal of attention at the (Once A Year) (More than Once A Year) Social Media and Press (Constant) announcements. The platform also enables Teknofest events held in 2019, ASELSAN Employees’ Voice Workshops Internally Funded R&D Projects (Constant) Social Responsibility Projects suppliers to be integrated with the supply briefed young individuals of all ages on (When Needed) ASELSAN Academy (Constant) (More than Once A Year) chain. Any problem suppliers encounter ASELSAN products and career practices Surveys on the Working Experience ASİL Solidarity Foundation on the portal is handled in a prompt and when they visited the Company’s booth. (When Needed) systemic manner, while business continuity is guaranteed at all times. Furthermore, the Company comes together with existing and potential suppliers through visits to the industrial and trade chambers in various Investors Sectoral and Non-Governmental Future Generations provinces. Analyst Meetings (Twice in a Year) Organizations Career Fairs (A Few Times a Year) Investor Conferences and Roadshows Conferences/Panels/Workshops Cooperation with the Ministry of (A Few Times a Year) (More than Once A Year) National Education Investor Relations Website (Constant) ASELSAN Vocational and Technical High Investor Relations E-Mail Address School (Constant) Techno Adventure Investor Relations Interactive Voice Alimhane Response (Constant)

PUBLIC INSTITUTIONS SOCIETY FUTURE GENERATIONS The majority of ASELSAN’s customers Contributing to the social, environmental, Young and successful professionals’ most- is comprised of public institutions. economic and cultural development of preferred technology company, ASELSAN Therefore, the Company pays utmost the Turkish society is among the key never compromises on its goal of leaving attention to compliance with all priorities of ASELSAN, which runs all its a more inhabitable world for future applicable laws and runs business activities by upholding its responsibilities generations. ASELSAN also works with processes based on the principles of for the society. In determining its ways of all its might to pass its solid corporate fairness and accountability. Developing doing business, the Company pays heed reputation onto future generations. The close relations with public institutions, to the opinions and suggestions of the Company communicates with the youth ASELSAN supports the public sector’s local communities where it operates. via various corporate communication projects and initiatives in social areas and channels including Techno Adventure and the defense industry. The Company also Alimhane. handles the public sector’s requests for information and opinions on the defense industry and ASELSAN’s activities.

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MEMBERSHIPS AND INITIATIVES SUPPORTED

DOMESTIC INTERNATIONAL ASELSAN √ ARUS (Anatolian Rail Transportation Systems Cluster) √ AOC (The Association of Old Crows - The Name for People Engaged in the Profession ASELSAN is √ ATO (Ankara Chamber of Commerce) of Electronic Warfare) closely monitors √ ASO (Ankara Chamber of Industry) √ AFCEA (Armed Forces Communication and Electronics Association) a member to, and developments and √ BGD (Information Security Association) √ DMR (Digital Mobile Radio Association) supports, √ İMMİB (Istanbul Mineral Exporters’ Association) √ EENA (European Emergency Number Association) recent trends in √ KALDER (Turkish Quality Association) √ ETSI (European Telecommunications Standards Institute) 24 international √ OAİB (Central Anatolian Exporters’ Association) √ EUROCAE (European Organization for Civil Avionics Equipment) the sector through √ RAYDER (Rail Transportation Systems and Industrialists Association) √ IEEE (Institute Of Electrical and Electronics Engineers) organizations. memberships √ SAHA İstanbul √ FOSA (Fiber Optic Sensing Association) √ SASAD (Defense and Aerospace Industry Manufacturers Association) √ IPC (Association of Connecting Electronics Industries) on national and √ SSIB (Association for the Defense Industry Exporters Operating under OAİB) √ IRIS (International Railway Standard) international √ TAP (Portable Battery Manufacturers and Importers Association) √ ONVIF (Open Network Video Interface Forum) √ TBD (Informatics Association of Turkey) √ OSA (Optical Society of America) platforms and √ TEDAR (Supply Chain Management Association) Membership subject to approval √ PCI-SIG (Peripheral Component Interconnect - Special Interest Group) √ TESİD (Turkish Electronics Industrialists’ Association) √ RTCA (Radio Technical Commission for Aeronautics) supported √ TESID-ESIM Association (Turkish Electronics Industry Association - Electronics √ RISC-V (Reduced Instruction Set Computing-V) initiatives. Industry Specialized Center Foundation) √ SID (Society for Information Display) √ TUMAKUDER (All Battery Importers and Manufacturers Association) √ SPIE (Society of Photo-Optical Instrumentation Engineers) √ TÜTED (Telecommunications Industry Association Corporate) Membership √ TETRA Base Station (Critical Communication Association) √ TIA ADVANCING GLOBAL COMMUNICATIONS √ UCAlug √ UITP (International Association of Public Transport) √ UIIN (University Industry Innovation Network) √ VITA (VMEBus International Trade Association) √ WEMPEC (Wisconsin Electrical Machines and Power Electronics Consortium)

36 37 ASELSAN Our Proven Professional Management Approach Sustainability Report 2019 ASELSAN

CORPORATE GOVERNANCE

Driven by its listing in 2012 on the Corporate Governance Index of Borsa İstanbul, ASELSAN manages its corporate governance approach as a continuous and dynamic process.

Adopting corporate governance approach ASELSAN’s management structure is as an indispensable principle, ASELSAN a single-tier system where the General The decisions observes the sensitivities of the sector Assembly elects a Board of Directors. taken by the where it operates; never compromises on ASELSAN’s Board of Directors is the principles of fairness, transparency, composed of 9 members, 3 of them Board of Directors accountability and responsibility, which independent. The Board of Directors has are executed under are the cornerstones of corporate decision-making and supervisory roles governance; and consistently improves in the determination and management the leadership corporate governance processes. of economic, environmental and ASELSAN bases its processes on a social impacts as well as risks and of the CEO of professional corporate governance opportunities. The Board of Directors ASELSAN. approach, and releases a Corporate ensures that the works are performed Governance Principles Compliance in an effective and effective manner and Report every year since 2004. comply with the Articles of Association, directives and policies established. Listed on the Corporate Governance Index of Borsa İstanbul Since 2012 The decisions taken by the Board Driven by its listing in 2012 on the of Directors are executed under the Corporate Governance Index of Borsa leadership of the CEO of ASELSAN. İstanbul, ASELSAN manages its All members of the Board of Directors corporate governance approach as are responsible for the economic a continuous and dynamic process. performance of the Company. The CEO Improvements made by the Company has an execution responsibility in the to this end paved the way for 2019 fields of social responsibility and the corporate governance rating of 9.29 environment. Three committees have out of 10, up from 8.77 in 2012, as per been formed to enable the Board of the evaluation of SAHA, the corporate Directors to fully execute its duties and Audit Committee: Early Detection and Management of Corporate Governance Committee The committee consists of three Risk Committee: The Corporate Governance Committee governance and credit rating company. responsibilities in ASELSAN: independent members of the board. The Consisting of two Board Members, the Early consists of three Board Members and ASELSAN’s Corporate Governance main responsibilities of the committee are Detection and Management of Risk Committee the manager of the Investor Relations to disclose financial information to the is chaired by an Independent Board Member. Department as per the regulations of the Principles Compliance Reports are public and monitor the functioning and The Committee convenes at least six times Capital Markets Board. The Committee is available under the annual reports on the effectiveness of ASELSAN’s accounting a year to determine the Company’s strategic, chaired by an Independent Board Member. corporate website. system, independent audits, internal audits, operational, financial and other risks and The Committee submits proposals to the and internal control systems. The Internal to manage the risks identified in line with Board of Directors to carry out corporate Audit Office reports directly to the Audit the Company’s corporate risk-taking profile. governance principles compliance and Committee and Members of the Board of Principles regarding the establishment, improvement efforts. The Committee Directors. The Audit Committee convenes at functioning, meeting and reporting of the convenes at least four times a year, taking least four times a year. committees are set out by the Board of the activities of the Investor Relations Directors. Department into account.

Further information on ASELSAN’s corporate governance structure, Board Members and committees is provided on the corporate website.

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CORPORATE GOVERNANCE

ASELSAN’s Ethical Principles Committee is established under the corporate structure and management system of the Company and consists of seven members.

ETHICAL PRINCIPLES elected with the votes of employees. INTERNAL AUDIT ASELSAN uses COSO (The Committee ASELSAN strives All ASELSAN employees are entitled to of Sponsoring Organizations of the ASELSAN’s Internal ASELSAN’s Ethical Principles, Values obtain information from the Committee Corporate governance at ASELSAN is Treadway Commission) as a guide to to create and and Code of Conduct is reviewed and and report any suspected unethical ensured via managing risks, evaluating ensure the effectiveness of the internal Audit Department preserve a working updated regularly so as to create working conduct to the Committee. Unethical and improving the effectiveness of control system and to streamline control regularly evaluates environments that comply with ethical conduct is promptly inspected by the internal controls, and carrying out activities by existing processes and environment values based on integrity, honesty Committee, which also implements internal audit activities in accordance functions. Internal Control - Integrated compliance with and work discipline; prevent unethical necessary measures in line with the with the International Internal Audit Framework Report released by COSO where employees behavior; raise awareness on ethical information and contributions received Standards. The main purpose of internal in 2013 sets out five components of legal and corporate treat one another values; and align the Company’s practices from the senior management. audit activities is to assure the Audit a sound internal control system at an regulations, with shared values and ethical principles. Committee and the Board of Directors organization: control environment, with kindness, When selecting new hires, utmost that risks are managed effectively. In risk assessment, control activities, implementation genuineness, ASELSAN strives to create and preserve attention is paid to choose who are this regard, annual audit plans and work information and communication, and status of ethical a working environment where employees willing to comply with ASELSAN’s core schedules are prepared based on risks, monitoring. Reports drawn up by relevant tolerance and treat one another with kindness, values and ethical principles. Every new and audit results are periodically reported departments in light of these principles values, and the genuineness, tolerance and respect, member of the ASELSAN family take to the Audit Committee and Board of and a risk-centric approach are submitted respect, and voice and voice their opinions open-mindedly. an onboarding program whereby they Directors. to managers and necessary control adequacy of the their opinions Thanks to the mutual trust established in go through comprehensive training on activities are performed. controls established the Company, employees act responsibly ASELSAN’s Ethical Principles, Values ASELSAN’s efforts to boost its open-mindedly. and look after not only their individual and Code of Conduct and ASELSAN’s competitive edge and cement its The internal audit methodology to eliminate risks. interests but also the long-term interests Directive on Ethical Values. Efforts are position as a global company have focuses on improving internal controls of their society, their Company and all undertaken to ensure that all ASELSAN brought the importance of this function on processes in order to increase the the stakeholders of this Company. employees internalize ethical values in an to the fore and raised expectations. In efficiency of business processes, reduce environment where they are encouraged 2019, activities aimed at increasing the costs in supply chain management, and Ethical Principles Committee as to uphold these values in their day effectiveness of the audit process and contribute to the progress towards long- an Executive Body to day work and at all times after the strengthening ASELSAN’s corporate term corporate sustainability goals, such ASELSAN’s Ethical Principles Committee onboarding period. In 2019, 44 files structure continued. as use of green technologies. is established under the corporate were submitted to the Ethical Principles structure and management system of Committee, and all files were evaluated Effective Internal Audit Tools In 2019, an audit was conducted on the Company and consists of seven and request owners were informed. Internal Audit regularly evaluates the activities related with IT disaster members. Chaired by the Vice President ASELSAN’s Ethical Principles Committee compliance with legal and corporate management process. The audit was of Corporate Governance, the Committee announced the files received and the regulations, the implementation status intended to evaluate the effectiveness, consists of the representatives from evaluations made by the Committee to of ethical values, and the adequacy of efficiency and retrievability of business Internal Audit, Industrialization and all ASELSAN employees so as to raise the controls established to eliminate processes prone to interruption due to Procurement Directorate, Legal awareness on ethical principles and risks. Internal auditors who take part natural disasters and other reasons. Affairs and Human Resources, and values. in these activities at ASELSAN are This audit also contributed to the two ASELSAN employees who are committed to complying with the effectiveness of internal controls within Code of Ethics established by the the business continuity governance Global Institute of Internal Auditors. structure so as to minimize the impact Furthermore, an internal auditor is of possible interruptions in IT services appointed to ASELSAN’s Ethical and ensure the continuity of critical Principles Committee in order to expand processes. the role of ethical principles in corporate culture and disseminate the value-driven management approach across the Company.

40 41 ASELSAN Our Proven Professional Management Approach Sustainability Report 2019 ASELSAN

CORPORATE GOVERNANCE RISK MANAGEMENT

Employees are able to contact the Ethical Principles Risk management at ASELSAN is based evaluated based on a “top-down” and Committee on all matters where they suspect an on the enterprise risk management “bottom-up” approach, by involving the ASELSAN’s unethical behavior. principles and handled in a holistic and Board Members, Members of the Early proactive manner to guarantee business Detection and Management of Risk Enterprise Risk continuity. Committee and every employee in the process. ASELSAN’s risk inventory is Management Policy Enterprise Risk Management activities divided into four categories: strategic, is intended to make are carried out with risk management financial, operational and compliance Anti-Corruption Training for Internal In determining the organizations, mechanisms as well as structures such risks. They are managed as part of Auditors retailers, business partners and suppliers sure that necessary as boards and working groups that business processes and corporate ASELSAN’s All internal auditors at ASELSAN for contract execution, individuals and encompass the entire Company from governance and integrated into the action is taken take anti-corruption training. Internal entities about which there is negative Anti-Bribery and the Board of Directors to the employees Company’s decision-making mechanisms. directives set out preventive actions intelligence on bribery or corruption, are and stakeholder of functional departments. “ASELSAN Anti-Corruption within the internal control system, disqualified. In bidding processes, firms Enterprise Risk Management System The risks in ASELSAN’s risk inventory are interests are while the internal audit unit examines determined to have been involved in acts Policy is available was established under the guidance of, classified and prioritized by their impact bribery and corruption risks in a systemic of corruption via fraud, promise, threat, always protected and is still run in line with, ISO 31000 and likelihood, after being evaluated in English and manner. The Unit also carries out exercise of influence, seeking of benefits, Risk Management Standard, COSO in terms of time, cost, performance inspection activities, if assigned by the concerted action, extortion, bribery and in the face of all Internal Control and Enterprise Risk and reputation. The impact of the Turkish and can Board of Directors, in order to have a other means are included in the blacklist. Management Frameworks and the Company’s risks, which are monitored uncertainties thorough investigation of these risks. Furthermore, the Instruction on the be found on the Orange Book of the Treasury of the at corporate level, are generally medium Selection and Management of Overseas threatening the United Kingdom.” level. However, necessary measures and corporate website. ASELSAN’s Anti-Bribery and Anti- Representatives defines the methods practices are identified to minimize the corporate existence Corruption Policy is available in English regarding the selection of representatives Comprehensive Risk Management impact and likelihood of those risks and Turkish and can be found on the as part of overseas marketing and business of the Company. Policy that are perceived as threats after corporate website. The Anti-Bribery development activities, the determination ASELSAN’S Enterprise Risk Management prioritization. After that, an action plan and Anti-Corruption Policy applies to of remuneration, and the approval process. Policy is intended to make sure that is formulated consisting of mitigating/ the Board Members, Executives and a periodic basis. This report includes ANTI-BRIBERY AND necessary action is taken and stakeholder preventing activities for each risk. Employees of ASELSAN, shareholders, ASELSAN Ethical Principles, Values information on the performance of interests and the corporate identity The mitigating/preventing activities ANTI-CORRUPTION subcontractors, suppliers, consulting and and Code of Conduct provides a clear mitigating/preventive activities aimed are always protected in the face of all determined by the Company include a audit companies that provide services to description of the corporate approach at the risks in ASELSAN’s risk inventory. Prevention of conflicts of interest, uncertainties threatening the corporate series of practices such as segregation of ASELSAN, all other stakeholders with toward relations with third parties, Enterprise Risk Management Assessment professional management of relations existence of the Company. Within approvals, authorizations, confirmations, whom ASELSAN maintains a commercial receiving and offering gifts, and individual Board and Risk Working Groups have with stakeholders, and performance of this scope, an Early Detection and reconciliations, performance indicators, and social relationship, the companies use and confidentiality of ASELSAN’s also been formed to carry out activities all legal obligations are the underlying Management of Risk Committee was custody of assets, and segregation where ASELSAN directly or indirectly resources. Members of the Board, aimed at defining and managing risks at values of ASELSAN’s corporate culture. established in 2012 for the purposes of duties. The Early Detection and holds more than 50% of the shares or employees, and their first-degree relatives different levels. Regarding bribery and corruption as of identifying and defining ASELSAN’s Management of Risk Committee draws voting rights, as well as the joint ventures are prohibited to accept third parties’ the most dangerous threat for ethical risk exposure proactively and manage up an annual assessment report and and affiliates of ASELSAN. As declared in gifts, personal services or support that The World Economic Forum’s Global values in society, ASELSAN has a those risks in line with the Company’s submits it to the Board of Directors the Policy, the Learning and Development might have an influence on ASELSAN’s Risks Report 2020 Taken as a Basis clear description of its relations with risk-taking approach. Consisting of Board annually. The report provides those Operations Department delivers training preferences and decisions. Similarly, According to the Global Risks Report customers and shares its means of Members and chaired by an Independent information included in the Company’s to all ASELSAN employees based on suppliers are also informed of this matter 2020 by the World Economic Forum, communication with customers on its Member of the Board, the Committee annual report and pertains to the training set prepared by the Internal via a message posted on the website every the headline risks in terms of likelihood corporate website. conducts works in accordance with the committee members, meeting frequency, Audit Department so as to raise their year. In this message, it is clearly stated and impact are extreme weather caused regulations of the Capital Markets Board working principles, and activities of awareness on the prevention of bribery that ASELSAN employees do not accept by climate change, climate action of Turkey. The Committee identifies the Committee, while serving as a and corruption. gifts, no matter what the reason is. failure, natural disasters, biodiversity and defines ASELSAN’s risk exposure basis for the Board’s evaluation on its loss, and human-made environmental proactively and manages those risks in effectiveness. Furthermore, the risks in Employees and third parties are disasters. Reporting to CDP successfully accordance with the Company’s risk- ASELSAN’s risk inventory are reviewed encouraged to report, without facing any since 2010, ASELSAN discloses to all taking approach. In performing these by the Committee at least once a year restrictions whatsoever, acts of bribery stakeholders its climate change risk tasks, it fully complies with all applicable for the purposes of evaluating the level and corruption to ASELSAN’s Ethical assessment - one of the paramount risks regulations, primarily including Article of impact and likelihood of such risks. Principles Committee and contact the facing our era - via this report annually. 378 of the Turkish Code of Commerce As instructed by the Committee, the committee on all matters where they The most recent version of the CDP no. 6102. Risks that may prevent the Enterprise Risk and Process Management suspect unethical conduct. report will be disclosed to the public no Company from reaching its medium- Department prepares a report for later than the last week of August 2020 and long-term goals are defined and submittal to the Board of Directors on on the website of our Company.

42 43 ASELSAN Our Proven Professional Management Approach Sustainability Report 2019 ASELSAN

FIGHTING THE COVID-19 PANDEMIC

ASELSAN presented the internal and external measures taken to fight the COVID-19 Pandemic to the attention of stakeholders on its website in a transparent manner and in accordance with the Corporate Governance Principles.

Internal Actions • ASELSAN’s Chairman, President and • TVs of the IMS (Integrated well as the employees falling under ASELSAN has taken all preventive CEO Prof. Dr. Haluk GÖRGÜN sent an Management System) started disadvantaged groups determined by In all ASELSAN measures and necessary decisions to e-mail informing all employees on the displaying the videos and posters of the Ministry of Health. Awareness-raising premises, a total safeguard the health of all the employees Management Strategy in the time of the Ministry of Health on accurate • The Company decided that non- courses were and and provide them with an appropriate COVID-19. and effective hand washing methods. essential overseas engagements be 33,000 square working environment at all its premises • A Health Measures Board was 750 informative posters were hung in cancelled; employees having entered are being delivered meter area is since the initial statements of the World established consisting of the managers relevant areas of all premises. the Turkish territory as of March 1, to all the support Health Organization and the Turkish from different functions and taking • Awareness-raising courses were and are 2020 be granted administrative leave disinfected on a Ministry of Health on the threat of decisions upon evaluation of current being delivered to all the support staff for a period of 14 days starting on staff working at the novel coronavirus (COVID-19). The developments on COVID-19. The working at ASELSAN. the day of entry and advised to take daily basis. Company’s primary goal is to protect Board convenes on a daily basis, • ASELSAN’s Ministry-certified Daycare necessary precautions during their ASELSAN. the health of all employees working working on the measures to be taken Center and Kindergarten were closed administrative leave for the purposes at ASELSAN premises and guarantee and submitting proposals to the on March 16, 2020 until June 1, 2020 of public health. In order to protect the the continuity and sustainability of Executive Board. as per the legal restrictions on daycare families of those employees coming production and design activities, as • The Executive Board holds daily centers and kindergartens. from abroad, they were provided the required by the nature of its core meetings on this matter, while • Pregnant employees and employees opportunity to stay at an apart-hotel business line and the importance it evaluating the proposals of the who were on nursing leave, as well when requested. bears for Turkey. Brief information and Health Measures Board and working as the employees falling under • All training courses, including in-class statements on the aforementioned on potential fighting and business disadvantaged groups as determined trainings, events, seminars, exhibitions, matters are provided below: continuity strategies for the coming by the Ministry of Health (immuno- social and cultural activities were • All the cafeterias at ASELSAN’s period. suppressed people, cancer patients, postponed until further notice. premises were closed on March 19, • The decisions of the Turkish Presidency, • In all ASELSAN premises, a total people with chronic respiratory • All one-on-one recruitment interviews 2020, with further notice pending. Turkish Ministry of Health and the 33,000 m2 area is disinfected on a daily diseases, obese people, people with have been postponed until further As part of catering services, a food Coronavirus Scientific Advisory basis. ASELSAN’s self-owned and fleet diabetes and cardiovascular diseases, notice, and replaced by video-calls, package is provided per employee. Board under the Ministry, as well as rental vehicles and all staff shuttles recipients of organ transplant, and which continued in an uninterrupted • Use of all the elevators at ASELSAN amendments to relevant regulations are regularly disinfected on a daily chronic patients) were granted manner. premises was cancelled. are monitored closely; all decisions are basis. The number of hand sanitizing administrative leave as of March • No person other than critical visitors is • Where employees or their families are executed promptly; and updates and stations was increased from 49 to 16, 2020. All employees other than allowed inside ASELSAN’s premises. requested to have a COVID-19 test information are provided to employees. 182; the existing disinfectant stocks pregnant or nursing employees started • The Company decided that employees performed outside ASELSAN premises • The use of palm scanners at entry and were expanded. Cleaning frequency for to work on June 1, 2020 as per the hold their meetings via use of meeting or if either of them is diagnosed with exit points of ASELSAN premises was common spaces was doubled. The ratio legal regulations. methods other than face-to-face the disease, calling the designated halted as of February 26, 2020. Turkish of fresh air from the ventilation system • ASELSAN’s primary goal is to gatherings (teleconferences, Skype, phone number promptly is mandatory. Health and Foreign Affairs Ministries’ was raised, and the cleanliness of the safeguard the health of all employees WebEx etc.). The speed of the wide • Daily body temperatures of employees links to the information notes and filters on all A/C units was checked. including the subcontracted workers area network was increased so as are monitored with thermal cameras travel health related with COVID-19 at the Company’s premises. Therefore, to prevent any interruption to these placed at the Macunköy, Akyurt were shared with all employees. ASELSAN made sure that contractors services. and Gölbaşı premises. Furthermore, implemented necessary decisions to • The Company started to give out employees’ body temperatures grant administrative leave to their a hygiene set of masks, gloves and are measured on a daily basis by pregnant and nursing employees as hand sanitizers to employees for their Emergency Medical Technicians. essential assignments within Turkey.

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FIGHTING THE COVID-19 PANDEMIC

All one-on-one recruitment interviews have been postponed until further notice, and replaced by video-calls, which continued in an uninterrupted manner.

• In order to guarantee social distancing • As for the vehicles delivering goods • At the Executive Board’s coordination • The ASELSAN Force Majeure External Actions via minimizing social mobility and and materials to ASELSAN, the meeting dated March 27, 2020, it Assessment Board was formed to • Studies to develop a local ventilator No person other contact between employees, verbal body temperatures of all the people was decided to grant administrative evaluate the existing or potential began. Installation works for the announcements are now being made on the vehicles, including drivers, than critical leave from March 30 to May 6, 2020 consequences of the COVID-19 production line of local ventilators at the entrance gates of all three are measured with hand-held to employees if their spouses, siblings outbreak, the impact of the pandemic were completed. visitors is allowed premises at the end of shifts for the thermometers at the security gate or first-degree relatives sharing the on ASELSAN’s commercial activities, • As part of the fight against COVID-19, purposes of protecting distance and before being allowed into the premises. inside ASELSAN’s house with them are actively working obligations and performance timeline. ASELSAN Research Center’s Bio- preventing people from flocking and • The body temperature of visitors, as a healthcare worker or as a service The Board identifies the impact defense Department initiated an R&D crowding. whose entrance is essential, is also premises. provider engaged in healthcare services of this situation, which is outside study on diagnosing COVID-19 via • Pursuant to the circular issued by measured by the Security Staff with at any of the Ministry-designated the control of, and impossible to sensitive optical biosensors. The plan is the Ministry of Environment and hand-held thermometers. pandemic hospitals. prevent for, ASELSAN, its suppliers to continue with this study throughout Urban Planning, waste masks and • Personal package deliveries are not • At the Executive Board’s coordination and subcontractors, on ASELSAN’s this period. gloves in places other than healthcare currently admitted inside ASELSAN’s meeting on March 30, 2020, it was obligations and performance timeline • In addition to its main industry, institutions started to be collected in premises. decided to divide the employees into as per contracts, purchase orders or ASELSAN has assumed a responsibility “Waste Mask & Glove” boxes on April • The infrastructure for medical two groups taking turns for working general provisions since the outbreak is for the society and social contribution. 13, 2020. observation areas was established for onsite as of April 1, 2020 until anticipated to have a negative impact Accordingly, the Company launched a each facility. further notice so as to minimize the on the performance of obligations. solidarity campaign to meet healthcare crowding of people and provide a The Board also evaluates whether or workers’ material and equipment needs working environment -enabling social not any related claims or notifications via the ASELSAN Social Innovation distancing at ASELSAN premises. provide a legally valid ground that Leaders (ASİL) Solidarity Foundation. • In order to protect both the mental constitutes a force majeure event. As part of the campaign, 600 face and physical health of employees, an • ASELSAN became the first defense shields, 720 protective goggles, 3,040 info note on “Mental Health During the industry company to qualify for coveralls, 300 overshoes, 1,000 scrub COVID-19 Outbreak” was issued by the COVID-19 Safe Production/Safe hats, 2,000 gloves, 32,500 surgical Support Function and communicated Service Certification by fulfilling all masks, and 2,000 N95 masks were to all employees. the standards set in the COVID-19 delivered to healthcare workers at 21 • It was decided that all employees, Hygiene, Infection Prevention and hospitals as of April 10, 2020. The including the employees of Control Standards, as a guide in the members of the Foundation continue subcontractors working onsite at fight of industrial enterprises against to work in close cooperation with ASELSAN premises, wear face masks COVID-19, by the Ministry of Industry Pandemic Hospitals. during their stay at the premises as of and Technology and Turkish Standards March 31, 2020. Institute (TSE). The Company donated TRY 1,500,000 • It was decided that personnel shuttles to the National Solidarity Campaign, be available for a limited use of 50% “We are self-sufficient, Turkey.” ASİL of their actual passenger capacity, Foundation also raised TRY 200,000 passengers be seated in a distance with the donations of the ASELSAN of more than one or one and a half employees for the campaign. meters at minimum, and wear a mask during their commute.

46 47 ASELSAN Our Value-Driven Human Resources Approach Sustainability Report 2019 ASELSAN

OUR VALUE-DRIVEN HUMAN RESOURCES APPROACH

A cultural transformation activity was carried out in 2019 to define ASELSAN’s corporate values and behavioral indicators and to determine employees’ perception of these values.

ASELSAN updates its Human Resources with the contributions of ASELSAN Policy regularly so as to maintain its employees. Efforts were initiated ASELSAN updates strong employer brand and enhance in order for employees to embrace its Human employee experience. ASELSAN’s main these values. Furthermore, plans were focus areas are to manage qualified formulated on how to incorporate the Resources Policy human resources in full compliance with values into HR practices. A series of regularly so as applicable laws and regulations governing projects launched included performance the working life, provide modern management, remuneration, career and to maintain its employment and working conditions, talent management, determination of encourage personal development, leadership, functional and technical strong employer and boost work performance. To this competencies, process analysis, HR brand and end, the Company partnered with an technology transformation, improvement international consulting firm to conduct of recruitment processes, and enhance employee a project aimed at determining the establishment of a leadership school. experience. strengths and improvement areas of the Unity is Our Spirit Human Resources Management Policy. Our Values Stand for Our Strength As a result, a medium-term business A cultural transformation activity plan and roadmap was prepared. The was carried out to define ASELSAN’s organizational structure of the Human corporate values and behavioral Trust is Our Commitment Resources Directorate was re-evaluated indicators and to determine ASELSAN first. Then, an organizational structure employees’ perception of these values. was established that enabled Human Resources (HR) Directorate to have a The ASELSAN Cultural Transformation stronger presence onsite, focus on career, and Values Project started out with the talent and performance management development of a “Corporate Values Map” ASELSAN Innovation is Our Philosophy effectively, and run learning and to identify employees’ personal values Values development activities integratedly with they believe to represent themselves, other human resources practices. their perceived values and corporate behaviors at ASELSAN, and their World-Class Human Resources Policy desired values and corporate behaviors is Our Work A project plan was prepared to be at ASELSAN. The project was enriched Excellence implemented in short term as per the through focus group workshops. Human Resources Management Policy. The project plan was announced to ASELSAN values built on the opinions of ASELSAN employees with the vision all employees, as well as the behaviors Development is Our Goal “Introducing World Class Human representing these values, took final Resources Practices to ASELSAN” shape upon the approval of the Senior under the motto “For You, With You.” Management. ASELSAN Values The first phase of the project helped were announced in an event with the re-identify the ASELSAN values participation of all ASELSAN employees.

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Number of Blue Collar Employees by Age Group and Gender EMPLOYEE In 2019, 1,553 2018 2019 people joined Age Female Male Female Male PROFILE ASELSAN, with <30 57 576 69 627 358 women and 30-50 143 1,076 156 1,286 1,195 men. >50 10 137 9 117

Total 210 1,789 234 2,030

Number of Employees by Contract Type and Gender

ASELSAN regards qualified and experienced human Female Male

resources as its most important competitive advantage. Fixed Term Contract 75 477

Permanent Contract 1,520 5,361 21% of the workforce are female the change in the workforce along with employees in the employee breakdown the breakdown of existing employees, Total 1,595 5,838 In 2019, female of 2019. The breakdown of total 7,649 detailed information on new hires and ASELSAN employees by gender, age group and the number of employees who quit work working category is provided in the in 2019 is also provided in the following Female Male employees following tables. In order to monitor tables. represent 21% Talent-A 47 159 of the total Total Number of New Hires workforce. Number of Employees in Governance Bodies by Age Group and Gender 2018 2019 2018 2019 Age Female Male Female Male Age Female Male Female Male <30 174 616 297 924 <30 - - - - 30-50 21 112 61 259 30-50 - 4 - 7 >50 0 6 0 12 >50 - 13 - 11 Total 195 734 358 1,195 Total - 17 - 18

Total Number of Leaves Number of White Collar Employees by Age Group and Gender 2018 2019 2018 2019 Age Female Male Female Male Age Female Male Female Male <30 24 120 23 109 <30 413 1,178 626 1,633 30-50 35 109 37 117 30-50 665 1,924 738 2,156 >50 5 41 6 54 >50 50 215 44 178 Total 64 270 66 280 Total 1,128 3,317 1,408 3,967

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Conducting all its operations in full compliance with the laws, ASELSAN adopts the approach of equal opportunities that prevents and bans discrimination, as required by the laws.

SOCIAL DIVERSITY AND Conducting all its operations in full Whistleblowing and Reporting While many industries in and outside EQUAL OPPORTUNITIES compliance with the laws, ASELSAN Mechanisms for Anti-Discrimination Turkey reflect differences arising from The ASELSAN always adopts the approach of equal There are whistleblowing and reporting gender and disability status particularly Employment opportunities that prevents and bans mechanisms in place at ASELSAN to on remuneration policies, such a Human Resources In line with its approach for “decent was provided discrimination, as required by the ensure that no employee experiences practice is inapplicable for ASELSAN’s work,” ASELSAN provides equal Directorate bases laws. The ASELSAN Human Resources an act of discrimination due to their human resources approach. ASELSAN’s to additional opportunities to all employees, without Directorate bases its activities within individual differences. The establishment remuneration policy is applied with its activities discriminating any religion, language, 29 disabled its remit on diversity and equal and functioning of these mechanisms is the same approach and equally for sex, ethnical origin, age, disability, sexual within its remit on opportunities. Developments in these monitored by the Senior Management, all employees regardless of contract individuals orientation and political opinion. One areas are reported to the Vice Presidency and related processes are handled by the type, gender and disability status. The of ASELSAN’s fundamental principles diversity and equal of Corporate Governance. No act Ethical Principles Committee under the legally-required number of disabled in 2019. is to treat employees, who are the of discrimination based on religion, Corporate Governance Vice Presidency individuals permanently employed in the opportunities. first links in its value chain, without language, race, ethnical origin, gender, consisting of managers and employee growing team of ASELSAN is monitored any discrimination throughout their age, disability, sexual orientation and representatives from different functions. meticulously. In 2019, employment was employment starting from the day of political opinion occurred at ASELSAN If an employee experiences discrimination provided to an additional 29 disabled recruitment. in 2019. for any reason, they are able to directly people. Furthermore, the number of report to the ASELSAN Ethical Principles female employees who joined ASELSAN Committee with their privacy being in 2019 is 290. protected. Further information on this process is provided in the ASELSAN ASELSAN places great emphasis on Human Rights Policy available on the employee welfare and well-being in all corporate website. business processes and activities at its premises. In order to facilitate life at any given facility, designated parking areas are allocated for disabled employees at car parks, while an elevator is put into service for access from the shuttle area to the facility.

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ASELSAN aims to acquire candidates who are creative, open to scientific and technological developments, committed to ethical values, equipped with independent thinking skills, and competent to act as team players.

RECRUITMENT High Brand Value for Young ASELSAN runs Professionals ASELSAN evaluates human resources Feedback is provided to candidates employment based on objective criteria for the regarding their applications as promptly and recruitment knowledge, skills and experience required as possible once evaluations are by any given position. The Company aims completed. ASELSAN provides an processes in to acquire candidates who are creative, environment where candidates can easily open to scientific and technological contact the HR Directorate via phone or ASELSAN provides career consultancy system was established. A system s • As of 2019, in addition to candidate light of universal developments, committed to ethical e-mail and obtain detailed information on to talented students when they need infrastructure was established enabling engineering students “Candidate values, equipped with independent their application at any time they wish. human rights it, while organizing school trips to candidates to monitor their application Specialists” in the administrative track thinking skills, and competent to act as ASELSAN premises where they can status individually. were also included in the program and standards team players. Having a growing brand value for young talents, ASELSAN attaches importance observe implementation of technology • System improvements are ongoing in as and started to work at ASELSAN and based on its and innovations onsite. The internship light of user feedback. The aim is to afterwards. Thanks to the program, ASELSAN runs employment and to cooperation with high schools, and talent programs also enable senior select and hire the right candidate for all candidates get the chance to have recruitment processes in light of universities and student organizations, position as an engineering students to work with the right position promptly. further experience in their respective universal human rights and standards in order to further its brand value and professionals with expertise in their • Taking the requirements of the job sectors through the projects assigned equal opportunity and based on its position as an equal place high-potential young talents in its respective fields. Examining the execution application into account, several to them, while working one on one with opportunity employer. The ASELSAN candidate pool. Introductory events are employer. of rare scaled projects, the, offers a updates were made on the recruitment their mentors and receiving constant Human Resources Directorate is organized and guidance is provided for unique experience for students. criteria and announced on the website. feedback. The Talent-A Program is responsible for the processes related high school students so as to brief them • Satisfaction survey forms for new enhanced with an assessment platform with the employment policy. Their on ASELSAN’s fields of activity and help 2019 Activities hires were digitized so as to evaluate aimed at feedback so as to guarantee activities are regularly reported to the them shape their education with the • As a part of the digitalization of recruitment processes thoroughly and the development of mentors and young Corporate Governance Vice Presidency. best possible approach to become a part recruitment processes, employee introduce enhancements if necessary. talents alike. The ASELSAN Recruitment Directorate of the ASELSAN’s family. The Company request forms have been transferred • The “Talent-A” program was launched • Placing great emphasis on “Back to is in charge of selecting and hiring also attends career fairs, seminars and to the digital environment along with to make sure that young talents Turkey,” which is a project aiming to new candidates. The Directorate runs panels organized by universities and recruitment and remuneration forms. develop professional competencies attract our country’s qualified workforce a recruitment system designed to student organizations, whereby it creates By doing so, request and approval prior to the start of their careers; back to Turkey, the Company continued determine the ideal candidate in the an environment to introduce ASELSAN processes were combined on the digital embark upon their professional life with its activities at full speed in 2019. fairest manner via utilizing a series of and shares the impact of technological platform. with awareness on the ASELSAN As part of the overseas exhibitions tools. The system is updated regularly developments on the industry with • The job application screen was culture; and receive one-on-one organized by the Human Resources in line with novelties and developments. students. re-designed to check whether the mentoring and guidance for their Office of the Turkish Presidency, With a focus on ensuring and maintaining candidate meets the recruitment career development starting from ASELSAN came together with the diversity among its staff, the Company criteria and notify them accordingly, their years at the university. A special students and professionals in the UK, evaluates the candidates who complete and the screen was enhanced with new application page and visuals were Germany, Uzbekistan and South Africa. the application form available on visuals. Besides, an announcement designed for the Talent-A program. This way, the Company also reinforced its the ASELSAN corporate website in mission of guiding the youth - who seek recruitment processes. a career in the defense industry and wish to develop themselves - by representing Turkey at such organizations.

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After winning the first place for five times in previous years, ASELSAN once again topped the list of Generation Y and Z members’ most preferred company in Engineering/IT fields, as revealed by the “Universum Ideal Employers Survey” in 2019.

• Thanks to the activities conducted as • After winning the first place for five part of the “Back to Turkey” project, times in previous years, ASELSAN once Thanks to 15 employees returned to Turkey and again topped the list of Generation Y the activities joined the ASELSAN family in 2019. and Z members’ most preferred company ASELSAN has a heartfelt belief that in Engineering/IT fields, as revealed by conducted under the new hires will contribute greatly the “Universum Ideal Employers Survey” the “Back to to Turkey’s leading defense industry in 2019. The survey was conducted with company thanks to the overseas the participation of 64,967 students Turkey” project, experience and knowledge they from 50 universities and 18,338 young PERFORMANCE The process of manager appointment acquired during their engagements in professionals with an average work DEVELOPMENT AND system was re-structured in 2019. 15 candidate The system is aimed at assessing the ASELSAN aims countries such as the USA, UK and the experience of 4.5 years in order to CAREER MANAGEMENT employees Netherlands. analyze and compare the perceptions of technical and managerial competencies to develop • The design of a website for “Back to the youth on work and employer brands. of executive candidates and addressing returned to Turkey Career Management their improvement areas through a employees’ Turkey” project and relevant efforts In 2019, ASELSAN jumped up by 5 As a leader in the labor market, on the application page, where the places for the students of Administrative systematic approach. Applications for competencies by and joined the ASELSAN strives to support employees’ the vacancies announced are evaluated in candidates can easily send their files, Sciences and Engineering/IT; and by development at all times, because it is ASELSAN family continued at full speed. 1 place for young professionals. This terms of technical and managerial skills. helping them gain aware that qualified human resources are Candidates are provided with feedback strengthened ASELSAN’s position the driving force behind the Company. further experience in 2019. among the top ten companies. on their strengths and improvement With this mindset, ASELSAN aims to areas, and a development plan is created through rotations support high-potential employees, who accordingly. will carry the Company to the future, between different by developing their competencies, and In the meantime, ASELSAN aims to functions in line providing all necessary sources to help develop employees’ skills by helping them become the future leaders through them gain further experience through with their career the development center. rotations between different functions in line with their career development. development. ASELSAN places great importance both The internal rotation process was re- on raising qualified human resources designed to achieve this goal. The new and on providing necessary support to process facilitates employee rotation boost the effective leadership skills of among departments, while allowing the their managers. As part of the Leadership Company to tap into internal resources Development School established in 2019, to address the skill gap in certain areas. our leaders are supposed to participate in the courses which aim to develop their leadership skills in 2020.

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Believing that corporate achievements are possible only through employees’ personal development and success, ASELSAN encourages employees for continuous development, and monitors, plans and manages their development performance.

The ASELSAN Development Center Continuous Development Number at the Stage of Establishment One Priority The ASELSAN At ASELSAN, career plans are developed The “Performance Development and Development after the evaluation of the competencies Feedback System,” which was revamped of those employees seeking a career in at the end of 2019, is designed to Center planned technical or managerial tracks. To this strengthen goal-based performance to be established end, the ASELSAN Development Center management and feedback culture. The to be established in 2020 is intended targets for all organizational units have in 2020 is to assess employees’ managerial been mutually determined in alignment intended to competencies, create development plans, with corporate goals. The most important and reinforce their leadership skills. gains with the new system included a REMUNERATION AND Comprehensive Social Benefits for assess employees’ performance assessment based on clear, FRINGE BENEFITS All Employees Performance Management objective and measurable targets, and In addition to the competitive The remuneration managerial Believing that corporate achievements a focus on continuous development remuneration system, ASELSAN provides ASELSAN places great emphasis on the policy at are possible only through employees’ through regular feedback meetings private health insurance, personal competencies, value the qualified workforce adds to the personal development and success, between managers and employees. accident insurance, infirmary services, ASELSAN is based Company. For this value to be sustainable create ASELSAN encourages employees for kindergarten, graduate education in coming periods, ASELSAN’s on the principle continuous development, The outcomes of the Performance opportunities, and the right for more development remuneration policy provides better and monitors, plans and manages Development and Feedback System annual leaves rights than stipulated by of “equal pay for conditions and benefits than the market their development. Within this scope, serve as a basis for employees’ career laws. plans, and average, and focuses on continuous Employee Satisfaction Surveys, management, remuneration and equal work” in development and job satisfaction. reinforce their workshops, one-on-one meetings rewarding processes. Accordingly, high- Under the “Talent-A Program,” which all premises and organized by the Human Resources performers pursue enriched career plans, enables university students’ participation leadership skills. The remuneration policy at ASELSAN is Directorate and employee feedback at while training and development plans are at work, senior students are able to work business lines, executed based on the principle of “equal exit interviews have all been evaluated created for underperformers. part time at ASELSAN and get involved in pay for equal work” at all facilities and and implemented to determine the effectiveness of the the projects designated by the Company. business lines, and without discriminating assessment system, which have been ASELSAN’s remuneration policy is not without any between types of contract, gender or in use since 2016, and to identify the based on minimum wage. Indeed, only disability status. problems in the functioning of the the university students who work at discrimination system. Evaluations and findings showed ASELSAN under the Talent-A Program The remuneration policy is maintained by of contract that an update to the existing system get minimum wage. They are given the taking into account the market research in line with the requirements at the chance to switch to full time work if they type, gender or on wages carried out annually to monitor Company was necessary. complete the program successfully and the economic indicators of the country, disability status. graduate from the university, and get paid ASELSAN’s financial results and the as per the existing remuneration policies labor market developments. at ASELSAN.

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Employees who retire from ASELSAN are granted a severance pay in proportion to their duration of service as stipulated by law.

The plan for 2020 is to conduct a “job Retired employees are eligible for grading” study for all the positions under the comprehensive health insurance Gifts are given to the existing main job family/sub-job ASELSAN offers to employees, provided retired personnel family at ASELSAN and to update the they pay the premiums themselves. remuneration policy, benefits and bonus as a token of systems in line with the requirements Employees who retire from or quit appreciation for identified. ASELSAN due to age limit are able to transfer their experience to ASELSAN their contributions Employees who retire from ASELSAN are as consultants, if needed and for a EMPLOYEE DEVELOPMENT To guarantee that ASELSAN’s value- granted a severance pay in proportion limited period of time. Besides consulting AND ON-THE-JOB creating design and development to ASELSAN. activities are beneficial, the Company The learning and to their duration of service as stipulated opportunities, such former employees are TRAINING OPPORTUNITIES by law. In addition to mandatory also able to continue their careers within invests in the learning and development development compensations, gifts are given to retired the ecosystem of numerous organizations of employees, which contributes to ASELSAN believes that development employee satisfaction and brings along a system at personnel as a token of appreciation of all sizes ASELSAN cooperates with. is the key driver for reaching strategic for their contributions to ASELSAN. highly-motivated group of employees who ASELSAN is objectives and success. Being aware that fully embrace the corporate culture. Life- successful employees mean a successful long learning opportunities for employees continuously Company, ASELSAN carries out rigorous are aimed at both their personal and activities to encourage employee corporate development. improved through development. ASELSAN organizes various measuring and personal and professional training and The learning and development system development activities for continuous at ASELSAN is continuously improved reporting the employee development, with a focus on through measuring and reporting impact of the always building on its intellectual capital. the impact of the relevant activity on business results. Accordingly, Catalogues relevant activity Learning and development activities on Learning and Development Programs are run in compliance with ASELSAN’s are prepared and updated as necessary. on business strategies and continuously improved Training programs provided to ASELSAN results. to help boost ASELSAN employees’ employees include in-class courses competencies. Carried out under the delivered by ASELSAN trainers, in-class oversight of the Human Resources courses organized by the Learning and Directorate, these activities are intended Development Operations Department to support ASELSAN’s corporate and delivered by consulting firms or objectives and strategies, enable academics, and individual training personal and organizational learning programs employees take at either and development, boost employees’ various companies or universities. competencies and performance, encourage exchange of information, and enrich the intellectual capital of the Company.

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In 2019, the Learning and Development Operations Department organized training courses on 61 Employees' Average Hours in Training In 2019, activities different topics under the main headings of 2018 2019 technical skills, expertise, management, personal were carried out Female Male Female Male development, and general information. to design and Blue Collar 17.1 19.5 12.7 11.8 run a Leadership White Collar 24.2 23.7 22.0 22.3 In 2019, the Learning and Development The following tables provide details on Development Operations Department organized the average hourly duration of training Senior Management (Executive Board) 13.8 20.1 0 5.3 Participant training courses on 61 different topics courses organized in 2019 per employee, School where satisfaction level under the main headings of technical by employment category and gender. The ASELSAN skills, expertise, management, personal hours in training per employee comply Employees' Total Hours in Training with the training development, and general information. with the breakdown of employees. managers have courses provided 11 new courses were included in the 2018 2019 training inventory. Participant satisfaction the chance to reached 87%. level with the training courses provided Female Male Female Male develop their reached 87%. Blue Collar 3,689 35,773 2,983 23,911 competencies to White Collar 28,811 83,300 30,952 88,386 help the Company Senior Management (Executive Board) 42 1,027 0 53 reach its strategic objectives.

The Learning Management System The Design of the Leadership Launched Development School Completed The new Learning and Development In 2019, activities were carried out Platform “a BİL-GE” was launched to design and run a Leadership for all ASELSAN employees in 2019. Development School where ASELSAN The Platform is intended to manage, managers have the chance to develop document, monitor measure and report their competencies to help the Company learning and development activities reach its strategic objectives. The design on a single system; provide courses of the Leadership Development School ASELSAN employees need on e-learning was finalized; and the preparations for platforms; and to help employees access the program for the existing ASELSAN information on learning and development managers in 2020 were completed. The easily. program is based on a multi-dimensional learning and development model involving the use of tools such as the implementation of a 360° inventory and reporting its results; face-to-face training modules, preliminary preparations for training modules and reinforcement tasks in between modules; as well as Action Learning Teams (ALTs).

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The ASELSAN Academy Graduate Education Program was brought into service pursuant to the protocol signed between the Higher Education Board (YÖK) and ASELSAN on August 1, 2017. The Program currently continues its graduate education activities with 524 of ASELSAN’s staff members.

ASELSAN ACADEMY The First “4th Generation” University GRADUATE EDUCATION Model in Turkey Thanks to the ASELSAN Academy opened graduate PROGRAM implemented and doctorate programs in Computer th Sciences, Electrical and Electronics, 4 generation ASELSAN Academy Graduate Education Mechanical and Material Engineering university model, Program is aimed at increasing the with the participation of research number of qualified and expert ASELSAN universities, i.e. Gazi University, Gebze ASELSAN staff and improving know-how by Technical University, Istanbul Technical The program is mainly intended to allow ASELSAN Academy was launched employees to take part in technology enabling ASELSAN’s staff to carry out University and Middle East Technical ASELSAN’s personnel to take classes on with the mission of developing the projects in the defense industry, conduct employees are now thesis studies on the topics within University. With the 4th generation the topics associated with the projects know-how of ASELSAN’s personnel thesis studies and hence increase the able to continue ASELSAN’s technology roadmap. university model implemented for the assigned to them at ASELSAN, thus on the Company’s field of activity quality and quantity of ASELSAN’s first time in Turkey, ASELSAN aims to helping them complete their thesis and contributing to the practical products and technologies in the long their graduate The ASELSAN Academy Graduate generate innovative solutions that boost studies on these fields. Appointing and academic development of other term. education at Education Program was brought into its competitive edge through the thesis academically-equipped staff to R&D stakeholders in Turkey (universities, R&D service pursuant to the Protocol signed studies ASELSAN employees carry out projects will help develop innovative centers, institutes, subcontractors etc.). The plan is to carry out these activities their place of between the Higher Education Board on the company’s ongoing projects. technologies and localize the production Therefore, it proved to be a brand new at the ASELSAN Academy Center, which (YÖK) and ASELSAN on August 1, It also provides the academics of the of critical technologies in the defense and innovative model that is important will feature classrooms, conference work, without 2017. The ASELSAN Academy model universities taking part in the program industry. The program will ensure that for Turkey and raises the bar for halls, laboratories and other necessary having to leave enabled, under the coordination of with the opportunity to work at applied the staff receive graduate education in expectations. infrastructure at the Macunköy Facility YÖK, many universities to take part in technology infrastructures of ASELSAN. light of ASELSAN’s mission and vision to ensure the continuity of this academic the ASELSAN the collaboration model under a single and conduct thesis and research studies The ASELSAN Academy Model enables program. facilities. program and also establish partnerships This model marks ASELSAN as the first in the field of defense industry. graduate program applicants who meet between universities. This feature marks and only industrial organization that the necessary criteria to take classes University-Industry Collaboration ASELSAN Academy as the first model serves as an external campus for multiple An Innovative Approach for Turkey and carry out thesis studies on their ASELSAN increased the number of implemented for such a purpose in and universities. The model has also enabled The program is also intended to foster existing/future projects. This is how university collaboration projects through outside Turkey. In the 2019-2020 Spring ASELSAN employees to continue their collaboration between universities and candidates complete purpose-driven the Internally Funded R&D Projects Term, 525 students - 51 PhD and 473 graduate education in their respective the industry, providing an environment studies as an extension of their jobs. and a series of procedures launched in M.Sc. - carry on their graduate education areas/projects, without having to leave where each party can undertake mutual Launched in 2017 as a university-industry 2018. As part of internally-funded and activities at the ASELSAN Academy. the facilities of ASELSAN. The program projects. As part of the activities of collaboration effort and expanded in the contracted projects, the Company worked is run in accordance with the Graduate the Academy, workshops are organized past two years, ASELSAN Academy is with 37 universities - 31 in Turkey and 6 Education Regulations and rules with the participation of all universities. an important and innovative platform abroad - on 132 projects in 2019. The (admission criteria, mandatory courses, The program boosts university-industry that is run under the umbrella of the Company paid USD 6.1 million in project program restrictions etc.) set by the partnership and cooperation between Vice Presidency for Technology and costs to universities as part of the R&D Graduate Schools’ of partner universities. universities. The approach of ASELSAN Strategy Management. Mainly intending projects conducted in collaboration with Students receive their MSc or PhD Academy also allows academics working to increase the number of qualified universities in 2019. diplomas from the university that offer at different fields and universities to carry human resources, the program will the relevant program. out projects together. allow academically-equipped ASELSAN

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The Company supports students who are interested in ASELSAN’s areas of strategic importance. Within this scope, scholarship programs are carried out to boost the knowledge on new technologies and equip human resources with new capabilities in the long term.

Internship Programs technologies and equip human resources Serving the purpose of raising human with new capabilities in the long term. 120 students resources in the long-term, internship There are scholarships available for enrolled in programs are run in coordination Turkish academics’ doctorate studies in with ASELSAN’s Human Resources Turkey. In 2019, nine people were granted the ASELSAN Directorate. Within this scope, 900 to scholarships for doctorate and post- Vocational and 1,000 higher education students do doctorate research activities in Turkey. summer internships at ASELSAN every Technical High year between June and September. ASELSAN Vocational and Technical INTERNAL Employees’ Voice Workshops Throughout their internships, students High School COMMUNICATION AND As part of the Employees’ Voice School, and Workshops launched in 2018 and The “open door” are observed by their respective For the purposes of raising qualified EMPLOYEE MOTIVATION the Electrical/ departments and evaluated as to human resources for the defense industry, continued in 2019, the Company came policy adopted whether they can be regarded as ASELSAN signed a Vocational Training together with the employees from across Electronic Intranet is used as an electronic different functions, and heard their by ASELSAN potential, future employees. Students of and Skills Development Cooperation information exchange platform at the vocational schools are also provided with Protocol with the Directorate General opinions on various topics, problems managers allows Technologies Company in order to ensure healthy and and rooms for improvement related the opportunity of vocational training for Vocational and Technical Training uninterrupted communication among program of the between September and June. (MTEGM) under the Ministry of National with performance, wage and career employees to employees and departments. Managerial management, engagement, satisfaction, Education. Accordingly, Turkey’s first decisions, internal arrangements, address and share school admitted The Company conducted a 3-week Level 2 Vocational and Technical High and the working experience at ASELSAN. department-specific activities, corporate Workshops were themed “You are Our their opinions the first 0.46% summer training course in August and School in the field of defense industry news and other announcements are September for gifted students. The systems was established in 2019, bearing Future” for engineers with 0-5 years of percentile of test communicated to employees via Intranet experience; “Proceeding Towards the and issues on all course involved 20 gifted high school the name of ASELSAN. on a daily basis, enabling employees students selected by the Ministry Summit Together” for engineers with matters with their takers. to be informed on all matters and 5-10 years of experience; “ Experience of National Education and aimed at As part of the curriculum for the developments pertaining to the Company. allowing these students to experience ASELSAN Vocational and Technical is Talking” for engineers with over 10 managers. New practices are introduced as needed years of experience; and “Not Without defense industry practices first hand, High School, four new courses were to boost communication with and th th You” for administrative staff. Workshops improving the quality of education, help designed for 11 and 12 grades in between employees. them acquire insights and motivation in the Defense Electronic Systems track; also included the fifth edition of meetings with managers and higher-level engineering and other areas, and enhance and seven new courses were designed The “open door” policy adopted by their future contributions to Turkey. for 11th and 12th grades in the Defense executives, and the “We Exist Together at ASELSAN managers, including the Board ASELSAN” workshop for the technicians. Mechanical Systems track. 120 students Members and CEO, allows employees Scholarship Programs enrolled in the ASELSAN Vocational and to address and share their opinions and In 2019, opinion and feedback taken in The Company supports students who Technical High School, and the Electrical/ issues on all matters with their managers. are interested in ASELSAN’s areas Electronic Technologies program of the workshops involving around 2,350 of strategic importance. Within this the school admitted the first 0.46% employees were enriched with the scope, scholarship programs are carried percentile of test takers. Students started survey conducted after these events. The out to boost the knowledge on new education on September 16, 2019. findings were gathered in a report and announced by the Chairman, President and CEO Prof. Dr. Haluk GÖRGÜN to all employees.

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The Brand Council Started Works Governance Vice President Assoc. The ASELSAN brand will be carried to the Prof. Dr. Hakan KARATAŞ met with The new HR practices, digitalization efforts for the future with solid steps only if an accurate the employees who recently joined the Employees process improvement/development and training brand perception of stakeholders is ASELSAN family during these events. conveyed 410 attained. Therefore, the “Brand Council” processes, as well as the Talent-A, Compass and a was launched in 2019 for the purposes ASELSAN employees had the chance suggestions to BİL-GE Programs were all launched in 2019. of managing brand communication to meet and bond with one another, the Development activities from a single point, achieving while getting to know ASELSAN better harmony of style and language in the thanks to the event. The plan for 2020 Workshop messages shared with internal and is to enrich this event with interactive external stakeholders, and cementing the practices involving learning processes Suggestion Solutions were developed and part Furthermore, managers come together position of the brand in the eyes of the focused on ASELSAN’s values. of the projects implemented in light with the staff at their facilities in System introduced stakeholders. ASELSAN’s of employees’ opinions and feedback. gatherings to celebrate the New Year. Orientation for New Hires on October 7, The plan for 2020 is to continue these Employees and managers came together Daycare Center Convening for the first time in February, As part of the event “Our Future is With workshops under the theme “Our on the fast-breaking street dinner 2019. the Council consists of members who You,” employees were given presentations and Kindergarten Business Matters” and hold meetings organized at Macunköy facility on the took comprehensive brand training, on General Company Information, Ethical with employees on matters such as last business day of Ramadan. Senior organized a special discussed the ASELSAN brand in Values, Information Security Policies, business models and case studies. executives of the Company attend New all aspects as part of the workshop Human Resources, R&D Contracts, Teachers’ Day Year gatherings with the staff at all three organized after the training, and came up Intellectual Rights, Industrialization, The new HR practices, digitalization facilities. “Welcome Kits” are prepared for with the results that would guide future and Supply processes that all served event bringing efforts for the process improvement/ new hires to strengthen their sense of actions. as a quick introduction to ASELSAN. In development and training processes, as belonging for the Company. together the order to increase the effectiveness of this well as the Talent-A, Compass and a BİL- Development Workshop Suggestion process, orientation updates, which were managers, GE Programs were all launched in 2019. The Company organized an event System monthly in the past, are now weekly for on the 44th anniversary of ASELSAN students, and The Development Workshop launched the new hires that start work in relevant Employee Representatives work to ensure on November 14, the date it was in 2019 runs as a system enabling week. In 2020, the plan is to deliver teachers. that the Company meets employees’ established. All employees were invited to suggestions to be conveyed and orientation programs via the BİL-GE expectations, hear the problems from the event. During the event, ASELSAN’s employees to be included in the Platform where new hires are given the their perspective, and encourage Turkish Folk Music and Classical Music implementation of such suggestions task of digital training courses involving employee participation in decision Choirs appeared in a concert and the Folk on increasing productivity, improving mini tests. making processes. They are selected by Dances Group delivered a performance. working conditions, improving quality employees and serve as a channel, which A draw was held during the event and level and cutting costs, optimizing Department Breakfasts conveys employee opinions and feedback 44 employees were presented gifts. business processes, ensuring safety and Driven by ASELSAN’s motto “For to the senior management. Furthermore, starting from ASELSAN’s strengthening the reputation of the You, With You,” the Company came 44th anniversary, employees were given Company. Active as of October 7, 2019, together with employees in breakfast Events for Employees on Special gift points to celebrate their birthdays. the “Development Workshop Suggestion organizations at different Departments Occasions System” received 410 employee so as to give a different start and end to ASELSAN’s Daycare Center and Monthly Activity Reports suggestions in 2019. the business week. Managers attended Kindergarten organized a special Monthly activity reports are drawn to the breakfasts and listened to the Teachers’ Day event bringing the keep the corporate memory of ASELSAN “Our Future is With You” Events opinions and suggestions of employees, managers, students, and teachers alive, and disclose all the activities In 2019, ASELSAN organized events while exchanging information and together. carried out in a month as a single that gathered new hires every month. having pleasurable time with them. report in a holistic fashion. The reports These events featured informative The aim is to continue organizing these Employees have the chance to meet for help keep a record of improvements presentations, quiz shows, teamwork breakfast events in 2020 for the purposes greetings with the managers at their and developments, and the activities activities and bonding activities. of enabling the Company to foster facilities before religious holidays. Every performed by different sectors and Chairman, President and CEO Prof. communication with employees. year, employees are presented with Vice Presidencies, while ensuring this Dr. Haluk GÖRGÜN and Corporate corporate gifts for religious holidays, information is conveyed to all the sectors, the New Year and special occasions. the management and future employees.

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EMPLOYEE RIGHTS

ASELSAN employees come together in the communities under the umbrella of the ASELSAN Social Innovation Leaders (ASİL) Platform and organize sports events to boost employee motivation and interaction.

“Thanks to Our Families” Sports at ASELSAN The Company thanked the families of ASELSAN employees come together in Employees’ sense employees, who joined ASELSAN and the communities under the umbrella of of belonging attained an engineer position after the the ASELSAN Social Innovation Leaders • ASİL Pentathlon attended the Inter- • Defense industry activities were given a Candidate Engineering Program following (ASİL) Platform and organize sports Club Biathle – Triathle Championship pleasurable break with the concert by The free concerts and loyalty for graduation, for introducing rising stars events to boost employee motivation and organized by the Modern Pentathlon the ASİL Turkish Classical Music Choir the Company is to ASELSAN, sharing their most valued interaction. ASİL’s basketball, football Federation of Turkey. for IDEF 2019 at TÜYAP. by the ASİL persons in their life with the Company and table tennis teams raced in inter- • Also known as the Alpines of Turkey • ASİL Turkish Folk Music Choir paid Turkish Folk Music increased thanks every day, acting as the unsung heroes of company tournaments held in 2019. for mountaineers, the Anti-Taurus a visit to, and performed for, the their children, and allowing ASELSAN to Other sports events organized in 2019 Mountains in Niğde is composed of residents of the Fatma Üçer Nursing Choir and the ASİL to the Assessment be part of their accomplishments. are as follows: more than 90 peaks. The ascent of the Home. Emler (Engintepe) Peak on the fourth • ASELSAN organized a special event Turkish Classical and Rewarding th The Compass Program Kicked Off • ASİL Football Team became the range was completed successfully for its 44 anniversary with the th Music Choir System, as well Launched in 2013 to help new hires Champion of Ankara 2019 at the to celebrate the 44 anniversary of participation of all employees. The as the Compass adapt to the ASELSAN culture and their Business Cup Football Tournament. ASELSAN. ASİL Turkish Folk Music Choir and bring together jobs quickly, the Polar Star practice was Eliminating 24 teams, the ASİL • The ASİL Sailing Team set sails ASİL Turkish Classical Music Choir employees and Program aimed updated in 2019. A decision was made Football Team was granted the right towards Preveza on the anniversary of gave a pleasurable concert, while to continue this program under the to represent Turkey at EURO Business the Victory of the Preveza Naval Battle. the ASİL Turkish Folk Dances Club their families. at increasing name “Compass,” which is slated to be Cup. (ASELHOT) delivered a spectacular productivity. more productive, result-oriented and • ASİL Running Team raced in the Arts at ASELSAN performance. interactive. It was kicked off on November 21k Business Category at Vodafone ASELSAN employees come together in • Thanks to the ASİL Turkish Folk 1, 2019. The Compass Program is aimed Istanbul Half Marathon. The team also the communities under the umbrella of Dances Club (ASELHOT), employees at making sure the new members of the attended Lake Tuz Ultra Marathon the ASELSAN Social Innovation Leaders get the chance to experience ASELSAN family feel ASELSAN’s support and IDA Ultra Marathon organized in (ASİL) Platform and meet in bonding arts traditional dances. ASELHOT attended at all times during their adaptation, December 2019. events to boost employee motivation and the TUSAŞ Turkish Folk Dances show encouraging them to embrace ASELSAN’s • ASİL Basketball Team was the interaction. as a visiting team and had positive values, and highlighting the importance of Champion of Ankara at the Inter- reception after performing the dances feedback. Employees’ sense of belonging Company Basketball League, and came The free concerts by the ASİL Turkish of the Trabzon region. and loyalty for the Company is increased third at the Turkey Championship. Folk Music Choir and the ASİL Turkish • Theater enthusiasts come together thanks to the Assessment and Rewarding • ASİL Table Tennis Team ranked third Classical Music Choir bring together under the umbrella of the ASELSAN System, as well as the Compass Program at the Inter-Company Table Tennis employees and their families. The Theater Club. aimed at increasing productivity. Championship of Turkey. following concerts were performed in • ASİL Orchestra started activities under • ASİL Cycling Team raced in “Grand 2019: the coordination of the ASİL Arts- The Company came together with the Fondo Marmaris” and organized cycling Music Club. “First Compasses” on October 24, 2019. tours numerous times. • ASİL Turkish Folk Music Choir met with • Tekno Adventure Children’s Choir During the first introductory program, the members of the ASELSAN Family started its activities after the choir the “Compasses” were briefed on the at the Culture Center of Hacettepe auditions held on February 16, 2020. expectations from them and provided University. The Choir will enable the children with courses that were beneficial for the of ASELSAN employees to express “Compasses.” themselves freely and experience a life intertwined with arts. 70 71 ASELSAN Our Value-Driven Human Resources Approach Sustainability Report 2019 ASELSAN

EMPLOYEE RIGHTS

The Nursing and Assistance Leave allows employees to take paid leave in cases where a first degree relative is in need of care due to an illness or accident.

DECENT WORKING Nursing and Assistance Leave CONDITIONS Introduced The Employee The Nursing and Assistance Leave, the guidelines of which were set out in 2019, Satisfaction One of the key priorities for ASELSAN is was introduced as of the start of 2020. to achieve work-life balance and protect Survey carried out The Nursing and Assistance Leave allows the health, well-being and working employees to take paid leave in cases annually measures motivation of employees, who are the where a first degree relative is in need of most precious asset of the Company. employees’ care due to an illness or accident. In order to maintain work-life balance, working hours at ASELSAN are between engagement and The Feedback Process 07:30 and 16:35, equaling 42.5 hours a Exit interviews are held with the satisfaction with week. Such an arrangement of working employees who will quit the company. hours is also intended to minimize the the HR practices. In order to understand the factors that impact of congestion in rush hours of the drive employees to quit work clearly, the mornings and evenings on employees. data received from face-to-face interviews Finishing work early helps employees take and surveys are analyzed periodically time for themselves and their families. and reported to the senior management. Furthermore, ASELSAN employees ASELSAN works actively to ensure are able to work flexibly and plan their and continuously measure employee working hours in line with their daily engagement. priorities. freedom and personal safety. Within this The Company works actively to ensure HUMAN RIGHTS scope, ASELSAN gives its employees and continuously measure employee the assurance that they will not face Each and every engagement. The Employee Satisfaction ASELSAN is well aware that human physical or psychological harassment, Survey carried out annually measures rights and fundamental freedoms should ASELSAN employee and offensive, inhuman and degrading employees’ engagement and satisfaction be embraced, respected and protected behavior or punishment; and that if the is expected to respect with the HR practices. Meetings are by the internal stakeholders who are contrary occurs, the victims have all their held between employees and managers an integral part of the Company. The others’ rights and legal and constitutional rights to relief. so as to run the feedback mechanism Company treats each and every individual freedoms and entitled effectively. Employee feedback is equally, without discriminating against ILO-Compliant Working Conditions evaluated and actions, which may differences such as language, religion, ASELSAN complies with the employment to express their contribute to sustainable achievements, race, gender or political opinion. Each and rules stipulated by laws, and does not are implemented. every ASELSAN employee is expected requests and needs to respect others’ rights and freedoms evaluate candidates under 18 - regardless provided they do not and entitled to express their requests of the position - in recruitment processes. and needs provided they do not infringe Practices related with this matter are in infringe the rights and the rights and freedoms of others. Every full compliance with the standards of the individual is free to maintain their life, International Labor Organization (ILO). freedoms of others.

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Activities of the Occupational Health ASELSAN uses custom risk analysis and Safety Councils (OHSC) methods to identify potential hazards, OCCUPATIONAL HEALTH In managing occupational health and their type, severity and frequency at ASELSAN uses safety (OHS), operational responsibility, the workplace, and updates these custom risk analysis AND SAFETY activities conducted, decisions taken, analyses regularly. This process is run awareness-raising practices, and the in coordination with the employer or methods to identify coordination of the aforementioned employer’s representative, occupational potential hazards, rests with the senior-management level safety specialist, workplace physician, Occupational Health and Safety Councils an experienced employee of the relevant their type, severity (OHSCs). OHSCs convene regularly department, and the employee’s to evaluate and pass decisions on representative. The findings of the analysis and frequency at occupational health and safety. are reported to relevant departments. the workplace, Placing human capital at the heart of its operations Hazardous situations, near misses and The Occupational Safety Information dangerous incidents are determined and updates these and activities, ASELSAN safeguards the health and System (OSIS) was launched in May proactively. The hierarchy in risk elimination analyses regularly. safety of employees and provides them with a safe 2019 as software-based management is measure at the source, substitution, model aimed at maximizing compliance measure at the site, engineering controls working environment. with legal requirements, ensuring the and use of personal protective equipment. integrated operation of the system, disseminating OHS practices across all High Employee Awareness to Prevent Placing human capital at the heart of Occupational health and safety practices employees, strengthening the impact of Occupational Accidents The health its operations and activities, ASELSAN conducted under the Integrated OHS communication, storing information All employees are primarily tasked with safeguards the health and safety of Management System Policy are aimed properly, and close follow-up of efforts complying with occupational health and safety of employees and provides them with a at eliminating the hazards that might in relation to all the OHS activities. and safety instructions and reporting employees is a safe working environment. Decent and arise from various reasons at the OSIS enables all occupational health occupational accidents, risky situations and safe working conditions provided by the workplace, minimizing risks, and thus and safety practices to be managed near misses. Employees also have the right top priority for Company are designed in light of legal providing a safe working environment and in a holistic manner on the digital to abstain from work in cases where they obligations and the occupational health guaranteeing safety in the premises of environment accessible to all employees. identify a life threat as per the Occupational ASELSAN. and safety culture. Utmost attention is the workplace. These practices include risk assessments, Health and Safety Law no. 6331. Employees paid to occupational health and safety accident investigations, subcontractor of all levels are able to enter hazardous practices in line with the Integrated management, on-site inspections, situations/dangerous behavior/near misses Management System (IMS) policy incident notifications, and management using the “Incident Notification” module stipulated by the Senior Management. of non-compliance. under the OSIS and thus report these incidents to the Integrated Management The Integrated Management System Systems Department. These statutory ensures that dust, gas, noise, thermal rights of employees are communicated to comfort and lighting measurements are them during occupational health and safety performed at such sites as production, courses. repair, overhaul, construction and testing, when necessary. The aim with Under OHS courses, Fundamental, this process is to help designated Technical, Health, Elective Technical and officers reach compliance with the Working At Height Courses are delivered to standards in the non-compliant working employees as applicable for the task they environments and thus prevent potential perform. Duration and frequency of these occupational accidents. The root causes courses vary depending on the hazard class of occupational accidents that occur of relevant workplace. In 2019, installation despite all the aforementioned preventive works for the distant learning infrastructure actions are analyzed and potential were carried out for refresher courses. New precautions determined by the OHSC. hires take a two-hour Start of Work OHS Occupational accidents are monitored Training, instructed by an experienced and monthly; accident rate calculations made knowledgeable employee in their respective (AH is the number of accidents per 1,000 department, on the day they start work employees). The incidents that result in so as to help protect them against the no bodily injury or property damage, also hazards and dangers at the workplace. known as “near misses,” are also logged Furthermore, the Basic IMS Book helps new into the OSIS to prevent occupational hires acquire knowledge about ASELSAN’s accidents from occurring in the future. occupational safety and environmental management culture. The book is included in the onboarding kits the HR gives out to all new hires.

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OCCUPATIONAL HEALTH AND SAFETY

Employee health and safety is essential and a core priority not only when they are at the physical workplace but also when they are on duty at the sites outside the workplace.

Employee participation in training rules to be followed. These steps also Hygiene Councils courses and the validity of courses are include the evaluation of occupational suppliers’ premises, propose corrective “12th ASELSAN Occupational Health and monitored on SAP. The Company also safety matters and necessary actions in actions for hygiene, and serve as a guide Safety Motto Contest” was organized to An interactive, have been organizes planned fire, earthquake and relation to the workflow of assignments for necessary measures. establish a robust OHS culture which established under evacuation drills on an annual basis so outside the city and country. thrives with employees’ contributions for awareness- as to help employees be prepared in the Employees are regularly examined by the its implementation and development as a raising theater the guidance face of emergencies, review emergency Hygiene Councils Formed at workplace physicians. Tests requested shared responsibility embraced by all. measures, learn about action plans in All Facilities by workplace physicians are carried performance on of Workplace emergencies, and ensure emergency ASELSAN strives to meet hygiene out at the laboratories established at Workplace Physicians Handbook Physicians in all teams develop their intervention skills. requirements, achieve continuous organizational centers, delivering free-of- At ASELSAN, hazards that may result occupational improvement, help all staff and suppliers charge testing services for employees. In in occupational accidents are identified safety and the facilities so as Employee health and safety is essential regard hygiene a shared responsibility, the meanwhile, the Workplace Physician via risk analyses, site analyses, regular to support the and a core priority not only when they are and carry hygiene practices to the Handbook, which introduces their site observations, site inspections after environment at the physical workplace but also when highest level. Hygiene Councils have services to employees comprehensively, occupational accidents, and periodical was organized at hygiene practices they are on duty at the sites outside the been established under the guidance was prepared in 2019, to be distributed and daily outpatient examinations. workplace. In this regard, steps were of Workplace Physicians in all facilities to new hires. The Company adopts a three-tier the Macunköy, with the shared taken in May 2019 to inform employees so as to support the hygiene practices approach in managing work-related awareness of and their managers on the precautions to with the shared awareness of employees. Occupational accidents at ASELSAN hazards. This approach consists of the Gölbaşı and Akyurt be taken when they have an assignment The Council’s primary aim is to conduct are examined via OSIS, under the measures related with the working facilities on March employees. outside their current workplace and to hygiene inspections at employees’ “Occupational Accident” module, by environment such as a safe space, raise awareness on associated risks and common use areas and some of relevant the workplace physician, occupational ventilation, separation, distancing 25-26, 2019. safety specialist, department manager and closed working; activities that of the relevant employee, and other directly pertain to the employee such associated members of the staff. Root- as medical checks upon recruitment, cause analyses are performed to identify periodical examinations, daily outpatient necessary measures and actions to examinations, clinical psychologist prevent a similar accident from taking support, hygiene inspections and regular place in the future. In 2019, no accident health courses; and activities aimed at occurred that resulted in death or severe selecting, encouraging, and monitoring injury of ASELSAN employees. the use, of PPEs. No employee at ASELSAN is currently diagnosed with a An interactive, awareness-raising theater work-related disease. performance on occupational safety and the environment was organized at the Macunköy, Gölbaşı and Akyurt facilities on March 25-26, 2019.

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OCCUPATIONAL HEALTH AND SAFETY

The Integrated Management System (IMS) Cup is organized to boost employees’ participation, contribution and motivation and to keep this spirit fresh and young throughout the year.

OCCUPATIONAL ISO 45001 Occupational Health and HEALTH AND SAFETY Safety Management System Standard ISO 45001 brings the importance of leadership in MANAGEMENT SYSTEM Occupational OHS practices to the fore. To this end, site visits named “Visible Leadership” Health and Safety Since 2009, the Occupational Health were organized at each Vice Presidency Management and Safety Management System is so as to get the message across that implemented at ASELSAN as part of the CEO and Heads of Business Sectors (Vice System Standard OHSAS 18001 Management System and Presidents) lead occupational safety in compliance with the terms specified in practices. brings the relevant regulations of the Occupational importance of Health and Safety Law no. 6331. As a Active participation of employees at result of the efforts undertaken since July all levels in the occupational safety leadership in OHS 2018 and the external audit performed management system is another theme practices to the by an international certification body in the ISO 45001 Occupational Health June 2019, the Company was granted and Safety Management System fore. the certification of “ISO 45001:2018 Standard underscores. Within this Occupational Health and Safety scope, the Integrated Management Management System” as published System (IMS) Cup is organized to boost by the International Organization for employees’ participation, contribution Standardization. This certification ranked and motivation and to keep this spirit ASELSAN among the first companies fresh and young throughout the to have adopted the ISO 45001:2018 year. Furthermore, internal/external Occupational Health and Safety inspections and on-site controls are Management System in Turkey, serving performed to determine business sectors’ as a testimony to the Company’s leading compliance with the designated criteria. position in OHS practices. The best-performing business sector is granted the IMS Cup.

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PRODUCT AND SERVICE QUALITY

Driven by the principle of “reliable technologies,” ASELSAN strives to provide high-value-added, innovative and reliable products and solutions to both local and foreign customers and end users.

Attributing great value to customer activities, association with other processes, safety and satisfaction, ASELSAN risks, opportunities and interaction with one ASELSAN’s Quality boasts a Quality Management System another are defined; and control points for Management System based on the approach that requires necessary monitoring and measurement process efficiency to be continuously efforts established. is predicated on the monitored and improved. Designed as understanding that per national and international standards, With the processes and system being run ASELSAN’s Quality Management System in an integrated manner, the Company is “quality cannot be is predicated on the understanding that able to promptly spot the factors causing “quality cannot be subsequently injected deviation from planned results and subsequently injected into a product by way of control; it is internalize a risk-based approach aimed at into a product by developed as a feature of the product at preventing adverse effects and tapping into every stage of the process.” opportunities. This approach is executed in • Disseminating quality as a component • AQAP 2210 NATO Supplementary way of control; it of the corporate culture; and Software Quality Assurance line with the Plan-Do-Check-Act (PDCA) The definition, is developed as a ASELSAN’s Quality Policy and cycle. • Following and adopting evolving quality Requirements to AQAP 2310 Strategy as a Lighthouse models and standards. • AQAP 2310 NATO Quality Assurance functioning and feature of the product The system involves the systemic The PDCA cycle helps: Requirements For Aviation, Space And performance at every stage of the definition, management and interaction • Develop the resources needed to achieve The definition, functioning and Defense Contractors of processes for the Company to reach the results in parallel with customer performance of ASELSAN’s Quality • CMMI Capability Maturity Model of ASELSAN’s process.” the goals set in light of ASELSAN’s expectations and organizational policies, Management System was confirmed and Integration Quality Policy and Strategy. Process and with the purpose and processes certified by internal and external audits • ISO 17025 General Requirements Quality inputs, outputs, resources, stakeholders, of the system; identify risks and conducted in 2019. As of 2020, the for the Competence of Testing and Management opportunities; Company’s compliance for the following Calibration Laboratories • Implement planned activities; standards and models was verified and • ISO 10002 Quality Management: System was • Monitor and measure the processes is regularly monitored by accredited Customer Satisfaction and resulting products versus policies, institutions: • ISO 20000 Service Management confirmed and objectives, conditions and planned System certified by activities; and report the findings; • ISO 9001 Quality Management • And undertake performance-improving System: Requirements ASELSAN’s Quality Policies are presented internal and activities as and when necessary. • AS9100 Quality Management System: to stakeholders at the corporate website Requirements for Aviation, Space and of the company. external audits Within this scope, the Company analyzed Defense Organizations conducted internal and external stakeholders’ needs • ISO 13485 Medical Devices: Quality In order to introduce its products on and addressed changes and opportunities Management System civil aviation platforms, ASELSAN in 2019. through: • ISO/TS 22163 Railway Applications: also undertakes efforts toward Design • Improving the relations with Quality Management System Organization Approval (DOA), European subcontractors/strategic business • AQAP 2110 NATO Quality Assurance Technical Standard Order (ETSO), partners; Requirements for Design, Development Alternative Design Organization Approval • Digitizing processes and process and Production (ADOA) and Production Organization implementation; Approval (POA) certifications as per civil aviation regulations. 80 81 ASELSAN Our Innovation-Driven Product and Service Approach Sustainability Report 2019 ASELSAN

TECHNOLOGY AND INNOVATION ACTIVITIES

ASELSAN’s Innovation Strategy is focused on implementing all innovations, ranging from Product, Service and Process to Organization and Business Model and from incremental to radical, in a systemic and sustainable fashion.

For ASELSAN, technology is the most Technologies to be focused in line with critical tool to achieve sustainable growth the objectives of the Company’s strategic Technological with high-tech, original and innovative plan are aligned with ASELSAN’s development products, and the Company does not Technology Roadmap and Investment merely use but develops technologies. Plan objectives; technology management and innovation Technological development and activities by Business Sectors are is ingrained in innovation is ingrained in ASELSAN’s addressed accordingly. Technologies to DNA and lies in the remit of all be focused are cascaded down - based ASELSAN’s employees. At ASELSAN, Technological on the open innovation mindset- to Development and Innovation sub-segments with the contributions of DNA and lies in Management is addressed at senior customers, subcontractors, academic the remit of all level, with processes being run by the circles and other stakeholders. The Technology and Strategy Management technology roadmap and investment The Technology Roadmap and In 2019, budget items presented in the employees. Investment Plan is updated every Technology Roadmap and Investment Vice Presidency in coordination with plan, which is updated every year, lays Each year, Business Sectors. out the internally-funded research, year in light of evolving technologies Plan were integrated with the budget development and innovation projects and requirements. Later on, activities management module of ASELSAN’s ASELSAN Activities in Light of the Strategic directly aimed at acquiring these undertaken are reported and approved by enterprise resource planning system and Innovation Management System technologies and releasing innovative the Board, with relevant resources being commissioned. This allows the Company allocates some ASELSAN adopts the Strategic products. prioritized within the ASELSAN budget. to manage, report and evaluate multi- 7% of its turnover Management System as a framework that Each year, ASELSAN allocates some 7% faceted data in the technology roadmap preserves and maintains its sustainable 7% Turnover Support for Innovation of its turnover for the innovation projects and investment plan in a systemic for the innovation growth. The Innovation strategy is Projects planned as part of the Technology manner, and in integration with the projects planned integrated with and a component of, the The Technology Roadmap and Roadmap and Investment Plan. The Enterprise Resource Planning system. holistic Strategic Management System. Investment Plan is prepared as a holistic Company also funds technological as part of the Although innovation is a common instrument involving various planning investments in support of innovations The technology roadmap and investment approach for all companies, ASELSAN efforts including product, knowledge, with some 2% of its turnover on an plan is based on ASELSAN’s extensive technology distinguishes itself by performing process, and capacity planning. The plan annual basis. technology know-how and aligned road map and innovation works in an organized and consists of technology activities for with the Company’s own dynamics. systemic manner. the five-year period, annual technology Technological development goals in the Establishment and implementation of investment plan. acquisition goals, R&D projects and technology roadmap and investment the investment plan, and follow-up of ASELSAN’s Innovation Strategy is investments that will be internally- plan are monitored in accordance the technological development is a good focused on implementing all innovations, funded, and the ASELSAN Academy’s with the internationally-recognized example of a business model innovation. ranging from Product, Service and activities and planned thesis studies definitions for Technology Readiness The management of Internally Funded Process to Organization and Business in relation to these projects and Levels. Performance measurements for R&D Projects, which constitute the Model and from incremental to radical, technologies. such technological development goals implementation side of the plan, is in a systemic and sustainable fashion. are directly included in the targets set an indicator of a successful process for ASELSAN Vice Presidencies and innovation at ASELSAN. ASELSAN’s corporate scorecards, and reflected in their performance scores.

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TECHNOLOGY AND INNOVATION ACTIVITIES

In R&D efforts, ASELSAN works with all stakeholders based on the principle of collaboration and mutual benefits, while nurturing and being nurtured by the ecosystem it belongs to.

Internally Funded R&D Projects management were initiated. The system including the Turkish Armed Forces), and Company continues to encourage further The Seventh Award Ceremony of the ASELSAN allocates 7% of sources is planned to be rolled out in 2020, public authorities - first and foremost the involvement of all stakeholders in the Ministry of Industry and Technology Studies were for self-funded R&D activities that following the completion of the test Presidency of Defense Industries - that projects and provide an environment 39 awards in 13 categories were initiated to run comprise original designs arising from phase. provide support to these projects. The of technological development, presented in the 7th Awards Ceremony for the evaluation of innovative ideas. Company’s open innovation mindset, communication and exchange aimed the Technology Development Zones and the management With the new mechanism established Stakeholder Collaboration in R&D coupled with stakeholder participation at fostering cooperation between R&D Centers organized by the Ministry process of in 2018, Internally Funded R&D Activities in its innovative projects, broadens the stakeholders. of Industry and Technology in November Projects are initially passed through In R&D efforts, ASELSAN works with perspective on technology and helps 2019. In the R&D center performance ASELSAN’s preliminary reviews, done by the elected all stakeholders based on the principle develop products/systems in line with the 6 R&D Centers and 3,744 R&D category awards, ASELSAN came first ASELAN employee reviewers, and then of collaboration and mutual benefits, needs of target markets. Employees in two areas: “Highest R&D Spending at Internally Funded implemented upon decisions on the while nurturing and being nurtured by the Every year, ASELSAN allocates a R&D Centers” and “Recruitment of the R&D Projects “R&D Activities Evaluation Committee.” ecosystem it belongs to. This ecosystem The Ceremony for University-Industry significant budget for Internally Funded Highest Number of New R&D Staff.” As of the end of 2019, there are 150 includes ASELSAN’s partner universities Collaboration in Internally Funded R&D Projects with six R&D Centers digitally. active projects for new systems, products in innovative ideas and projects, research R&D Projects certified by the Ministry of Industry and ASELSAN’s Firm Stamp on and technologies. In the meantime, centers, technoparks, technology transfer Universities play an active role in Technology and 3,744 R&D employees Turkishtime’s R&D 250 Survey... digitalization of ASELSAN’s Internally offices, subcontractors, users of such the technological areas ASELSAN as of the end of 2019. As the leader of ASELSAN came first as the company Funded R&D Projects processes and its technologies and products (primarily ventures into. Expert academics actively the sector, ASELSAN owes its globally with the highest R&D spending participate in these projects with attractive market position to its focus amounting to TRY 2,162,839,458 in their know-how and contributions. on R&D and investments in technology, 2018, as demonstrated by Turkishtime’s ASELSAN boasts R&D collaboration while at the same time maintaining its survey on “R&D 250 and the Turkish with a growing number of universities, competitive edge and serving the national Firms with Highest R&D Spending” in technoparks and research centers, purpose of its establishment. 2019. According to the study, ASELSAN particularly in the technologies at their also topped the List of R&D 250 as nascent stages by terms of technology In 2019, ASELSAN filed 158 patent the leader of Turkey with 849 female readiness. On April 16, 2019, ASELSAN applications, of which 68 were registered. staff at its R&D center. Boasting 3,695 organized a ceremony in Ankara for The R&D Indicators of the Company are undergraduate and graduate R&D the University-Industry Collaboration as follows: specialists under its umbrella, the in Internally Funded R&D Projects, Company is a champion on the lists both bringing together ASELSAN, partner • Total TRY 2,975 million R&D Spending in terms of spending and expert human universities, technopark companies and • TRY 2,659 million Externally-Funded resources. The number of undergraduate SMEs. ASELSAN presented the current R&D Spending and graduate staff at ASELSAN is double project statuses to the universities, • TRY 316 million Internally-Funded that of the second place finisher, which lecturers, technopark companies and R&D Spending proves ASELSAN’s distinctive position SMEs, to which tokens of appreciation among other companies on the list. As for serving as a partner in the success for the number of projects implemented of such projects were given. The at R&D Centers, ASELSAN also ranked first with 1,300 projects.

84 85 ASELSAN Our Innovation-Driven Product and Service Approach Sustainability Report 2019 ASELSAN

TECHNOLOGY AND INNOVATION ACTIVITIES

As part of localization works, ASELSAN identifies import items and takes important steps to develop these products together with universities and SMEs.

National Local Product Studies and prioritization of products planned The National Local Product Development for localization. Prioritization works The NLPDB has Board (NLPDB) established in 2018 involved evaluation of products in performed detailed for national and local development of terms of technological challenges, the materials ASELSAN procures from infrastructure requirements, export examinations abroad, has intensified its efforts in restrictions, single source procurement, on some 20,000 2019. The Board devises strategies for performance and cost. The feasibility national and local product development; of development efforts either done products and prioritizes the products with overseas by ASELSAN or with subcontractors procurement restrictions; and works (universities or SMEs) was also evaluated. initiated works for with universities and SMEs under either Technical Specification Brochures were numerous products Internally Funded R&D Projects at prepared for the products intended to be ASELSAN or the incentive programs developed with SMEs. These brochures on an annual basis. 140 brochures, local product development activities; deficit. Indeed, ASELSAN came to the fore to date. aimed at national and domestic product were shared on ASELSAN’s corporate covering 450 products, were issued. analysis of data; track the production as the organization that issued the highest development. In 2019, “Localization website and made available to potential Preparations were completed for the and quantities needed in the future; number of MoUs in the defense industry. Sub-Committees” were established in local suppliers on the “Gücümüz Bir brochures of over 500 products in monitor the progress of joint works with Around 90% of the applicants, who also each of the ASELSAN Business Sectors. (Powerful Together)” Platform. The 2019. At certain intervals and based companies; and analyze the reporting on hold ASELSAN’s MoU, were approved; All the materials procured from abroad brochures are presented to the defense on their priority, they are presented to localization on a regular basis. this marked a significant contribution to in the recent years were examined via industry clusters providing access to Clusters and SMEs in launch events and localization efforts. these committees. The activities of a broad skill set at the same time and via different communication channels. Contributions to Narrow the Current the NLPDB and Business Sector Sub- composed of competent companies with Product development and localization Deficit TÜBİTAK- SME Support Program for Committees included the identification the capability to develop solutions for efforts initiated with local manufacturers ASELSAN supports and monitors these Order-Based R&D complicated defense projects. Organized offering design capabilities are efforts either directly or through various In 2019, ASELSAN made a proposal Industrial Zones, Chambers of Commerce successfully ongoing September 2018. incentive programs that are in place. to TÜBİTAK for support to SMEs and and industrial firms in a broad portfolio In order to perform these activities development of national products as equipped with numerous competencies In 2019, localization efforts for 246 with local sources, the Company works part of Localization Works. Following the are also among those recipients of the products under 84 product types were with SMEs and universities as part of evaluations of TÜBİTAK, a new call for brochures. finalized thanks to internally-funded R&D the Internally-Funded R&D Projects. projects was announced in May 2020. projects and the localization activities Furthermore, it provides guidance for This call is intended to support SMEs via The NLPDB has performed detailed undertaken with SMEs through technical applicant companies to benefit from joint projects with Customer Entities for examinations on some 20,000 products specifications brochures. Localization the support packages of KOSGEB innovative products and processes proven and initiated works for numerous of 210 products were finalized with (Turkish Small and Medium Enterprises to have potential customers. This will also products to date. As a result of these local companies and the rest was done Development Organization) and the expand collaborations and ensure more activities, a decision was made to develop through internally-funded R&D projects. Ministry of Industry and Trade, and effective use of public sources allocated and produce, using local sources, 300 issues a memorandum of understanding for R&D funds. Companies that identify products (which equaled 90 brochures) The Company also established a for the companies as and when needed. a certain need are defined as Customer in the first phase. In 2019, this number digital portal linked with the data of ASELSAN issued “Memorandum of Entities, who follow up the development rose upon the periodic examinations procurement processes and integrated Understanding” documents for 16 firms process of the ordered product together of the products procured from abroad with ASELSAN’s internal systems. The as part of the Strategic Product Support with TÜBİTAK. Commercialization aim of this portal is to store all the package introduced by KOSGEB to assist steps will also be monitored after the information regarding national and with localization and narrow the current development phase. 86 87 ASELSAN Our Innovation-Driven Product and Service Approach Sustainability Report 2019 ASELSAN

TECHNOLOGY AND INNOVATION ACTIVITIES New Partnerships for Product urgent need that the global demand Development for many of the components in the The first collaboration has started with device was soon impossible to meet. ASELSAN’s second METSİS, a national defibrillator (cardiac In an attempt to prioritize national partnership in the electroshock) manufacturer. The aim needs, governments introduced export is to blend ASELSAN’s engineering, bans or such restrictions as export field of life support high-tech product development and permit requirements for ventilators systems is with quality management capabilities with and critical components, which made METSİS’s know-how on defibrillators, it impossible to procure the device and BİOSYS, which and to produce innovative and globally critical components from abroad. In ambitious products via use of local this climate, ASELSAN partnered with has a prototype ASELSAN was granted the “Innovative Product” resources. The goal is to release the first BAYKAR, ARÇELİK and BIOSYS and of intensive award in the “Large Enterprise Category” with product of this collaboration in 2020. worked intensively to introduce a local ventilator to Turkey. ASELSAN provided care ventilators its ZARGANA Torpedo Countermeasure System ASELSAN’s second partnership in the tremendous contributions for BIOSYS (pulmotor). for Submarines in the 17th edition of the awards field of life support systems is with to improve the hardware and software BİOSYS, which has a prototype of design of the prototype-level device in held in 2019. intensive care ventilators (pulmotor). a few weeks and to come to a level at One of the most critical devices to which the device could be produced. support vital functions, the ventilator is Furthermore, ASELSAN undertook the Innovative Product Award for The Company continues with the used to support the patient’s respiration task of local design and production ZARGANA development efforts for medical imaging and take over respiratory functions of critical components impossible to In addition to The Turkish Electronics Industrialists’ devices including the Mobile Digital when necessary. It is among the vital procure from abroad. The first batch of Association (TESİD) organizes the “TESİD medical imaging X-Ray System and Magnetic Resonance components of the treatment for ICU the mass production for the resulting Innovation Awards” every year to support Imaging System (MRI). Equipped with patients suffering from respiratory failure. ventilator has been completed. Plans are devices, ASELSAN the innovative and creative projects and a rechargeable battery and operated The need for ventilators grew sharply ongoing to produce numerous devices in encourage such efforts of the companies with a motor controller, the Mobile all over the world due to the COVID-19 Turkey in the coming months, without considers the in the Turkish Electronics Sector. X-Ray device is designed for use at pandemic. Ventilators became such an any reliance on foreign sources. opportunities ASELSAN was granted the “Innovative where the patient is (e.g. ER, ICU, field Product” award in the “Large Enterprise hospital) without having to move the to partner with Category” with its ZARGANA Torpedo patient. The MR Imaging Device will help competent startups Countermeasure System for Submarines release innovative products via use of in the 17th edition of the awards held ASELSAN’s design capabilities related operating in in 2019. Developed for submarines and with the defense industry such as RFs, Turkey’s healthcare offering superior capabilities compared antennas, amplifiers etc. Efforts in this to its equivalents in the world, ZARGANA area are undertaken in collaboration with ecosystem. helps detect ideal avoidance tactics Bilkent University’s National Magnetic against torpedo attacks by considering Resonance Research Center (BİLKENT- the submarine data and environmental UMRAM). In addition to medical conditions, and, depending on the tactic, imaging devices, ASELSAN considers the ensures the use of acoustic decoys and opportunities to partner with competent jammers from outboard launchers. startups operating in Turkey’s healthcare ecosystem. ASELSAN builds long- New Strategic Products in term partnerships with, and provides Healthcare Systems engineering, quality management, ASELSAN strives to utilize its branding and industrialization support to, technological know-how in healthcare an ecosystem of Turkish companies that systems. To this end, it works on medical have medical device R&D activities and devices that have a high export potential, product development potential so as to are critical for diagnosis and treatment develop sustainable business models. processes, and are not currently being produced in Turkey.

ASELSAN’s activities relating to medical devices consist of three categories: medical imaging, life support and diagnostic systems.

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TECHNOLOGY AND INNOVATION ACTIVITIES Unmanned Aerial Vehicles ASELSAN attaches great importance ASELSAN invested in autonomous to innovation awareness in Turkey, aerial vehicle technologies, and set up a and therefore served as a sponsor for ASELSAN signed big design team, while investing in and the UAV-Supported Unmanned Land and started becoming a partner to a local company Vehicle, Unmanned Underwater Systems to address dynamic market expectations and Robotic Conquest 1453 Contests working on the in a more agile manner. Combining at the TEKNOFEST İstanbul Aviation, CBTC Signaling its advanced miniature electronics Aerospace and Technology Festival. design capabilities with its know-how In 2019, the Company also organized System Project for on avionics, the Company develops the 4th Communication Technologies multi-rotor UAVs, tethered drones, Workshop in Ankara so as to discuss the Istanbul M1 mini unmanned helicopters, fixed-wing latest communication technologies and Metro Line. Launched in 2016 at the ASELSAN Research aircraft, and multi-rotor vehicles in nano foster interaction between stakeholders. dimensions. In coming periods, ASELSAN 50 academics from 19 universities in Center, the Biodefence Research Program Unit aims to introduce its autonomous aerial seven provinces were the speakers at the gained further speed in its activities in 2019. vehicles with such additional high-tech workshop which had 300 participants capabilities as augmented reality and from 10 provinces, 27 universities and 9 artificial intelligence, which will cement institutions. its position as the leading company of the sector. Diagnostic systems is another area activities to be performed in the coming ASELSAN has preparations for. The years. ASELSAN conducts these activities In 2019, ASELSAN Company aims to develop diagnostic at the Research Center in Teknopark, organized the 4th kits and devices enabling quick diagnosis Istanbul so as to tap into the ecosystem of certain viral or bacterial diseases in Istanbul and Kocaeli. Telecommunication at primary care centers (point of care, Technologies decentralized testing), and testing devices Rail Systems that enable people to test themselves Capitalizing on its technological know- Workshop in Ankara individually (patient self-testing). Within how in the areas of communication, this scope, the Biodefence Research control, cyber security, unmanned so as to discuss Program Unit launched in 2016 at the systems, radar, and software&hardware the most recent ASELSAN Research Center worked more development, ASELSAN decided to intensively in 2019. R&D studies have develop a “Communication Based Train technologies and been started for the development of an Control (CBTC) System” for use at metro boost interaction. optics-based diagnostic system to detect lines and thus launched an internally- biological agents. Another aim of the funded R&D project. The works include Company is to develop a “Viral Diagnosis software and hardware, concept design Kit” to detect various types of viruses and deployment, and are currently with the research and development ongoing to develop an internationally- certified yet local CBTC signaling system.

Similarly, development efforts for the European Train Control System, which will be compliant with the standards of the European Rail Traffic Management System created by the EU, are ongoing as an Internally-Funded R&D Project aimed at ensuring uninterrupted border crossings.

As a result of these activities, ASELSAN signed and started working on the CBTC Signaling System Project for the Istanbul M1 Metro Line.

90 91 ASELSAN Our Innovation-Driven Product and Service Approach Sustainability Report 2019 ASELSAN

INFORMATION SYSTEMS AND INFORMATION SECURITY

Security of corporate and personal data is part of the corporate culture and an indispensable element of business continuity at ASELSAN.

At ASELSAN, information systems Pursuant to our Information Security management in human, process and Policy: ASELSAN’s technology dimensions is addressed in “Ensuring information security is essential devices and remote working models. Request Management System helps Information line with the objectives for information for ASELSAN. To this end, ASELSAN The company organizes comprehensive address users’ needs in the fastest and security, business continuity and is committed to protecting all the training programs to raise information most efficient manner. Established in Security and efficiency in business processes. The information assets it owns, fulfilling security awareness of its users, while also 2019 under the Business Company’s approach toward information information security requirements updating its users on current information ISO 27001 Information Security systems management is based on the ISO according to international standards security incidents. Management System (ISMS) was Information Continuity Policies 27001 Information Security Management and applicable laws, managing existing established in 2016 with the scope Management can be accessed Standard for information security; ISO and potential risks, and continuously Security monitoring, response and of IT, import, export, transit, customs 27001 Business Continuity Management improving, developing and reviewing hardening efforts have been integrated and foreign trade processes. Currently Directorate, by all stakeholders Standard for business continuity; and the information security.” under the umbrella of the Cyber Security under the supervision of the Information frameworks and standards of ITIL, COBIT, Operation Center (CSOC) launched Management Directorate, the system was the ISO 22301 at the corporate ISO 20000 and ISO 9001 for Information Pursuant to our Business Continuity in 2019. The center performs regular re-certified subsequent to internal and Business website. Technologies (IT) processes. This Policy: penetration tests and exercises on IT external audits in 2019. The ISMS covers management system and frameworks “As a leading player in the global defense systems so as to ensure security controls the Macunköy facility and the Gölbaşı Continuity help monitor best practices in the world, industry, ASELSAN regards effective are continuously improved. and Akyurt data centers in relation to the Management achieve continuous development, and and uninterrupted performance of the business processes specified above. ensure a sustainable management activities linked with its IT services and At ASELSAN, business critical data is System was of information systems across the products a top priority.” ASELSAN is safely kept and continuously backed Established in 2019 under the organization. Risk management is a committed to complying with world up at data centers located in different Information Management Directorate, successfully periodic process which enables all IT risks class standards, applicable laws facilities. The simultaneous duplication the ISO 22301 Business Continuity certified after to be monitored consistently and ensures and contractual requirements, and of corporate data in disaster recovery Management System was successfully necessary mitigation measures to be continuously improving, developing centers allows the Company to recover certified after internal and external internal and taken accordingly. and reviewing the system to guarantee critical IT services at any time needed. audits. external audits. business continuity.” The Agile Software Development Full Compliance with the Personal Lifecycle implemented under the IT Data Protection Law In order to ensure information As part of the Company’s centralized IT security, information assets and services, data classification activities are data communication channels are in full compliance with KVKK (Personal continuously controlled using up-to- Information Systems Management in Numbers Data Protection Law). date security technologies at ASELSAN. The Company adapts and uses secure Number of Employees 132 ASELSAN’s Information Security and solutions for endpoint security, crypto Average Age 36 Business Continuity Policies can be applications, security of portable accessed by all stakeholders at the Number of Facilities/Premises Supported 13 corporate website. Number of ASELSAN Affiliates Supported 5

Managed IT Hardware 76,000

92 93 ASELSAN Our Value-Driven Supply Chain Management Sustainability Report 2019 ASELSAN

OUR VALUE-DRIVEN SUPPLY CHAIN MANAGEMENT

ASELSAN is bound by the contracts it signs for the project-based activities, and its supply chain is involved in the execution of all activities from contract execution to project delivery and subsequent stages.

For ASELSAN, one of the most important The project has been executed in May links in its value chain is the suppliers 2019. With its category-based design, ASELSAN has since they have direct impact on the the new structure is intended to have been a member to product/service quality and the activities a command of the market and needs the Supply Chain of the Company and play a defining role in supply and supplier management; medium-term strategies are developed The Supply Workshop was also held in to boost its competitive edge. While manage risks effectively; function and necessary actions are implemented 2019, considering that the teams saw a materializing economic growth and proactively; control costs at the earliest Companies willing Management to prevent them or mitigate their impact. lot of benefits of working together. technological development goals with stage possible; monitor its areas for to work with Association all the stakeholders in its supply chain, improvement continuously to create Suppliers are an integral part of a Improvement areas of ASELSAN’s supply (TEDAR) since ASELSAN works to ensure the wide further value; reduce foreign reliance; sustainable supply chain. To ensure processes were evaluated and important ASELSAN can file adoption of an environmental mindset adopt an evaluation mindset focused on continuous communication and decisions were made to develop an application via 2017. aimed at respectful and moderate use of localization and total cost of ownership; collaboration with suppliers, ASELSAN improvement roadmaps at the workshop. all resources; to raise social awareness assume the task of contributing to all has developed a Supplier Portal where the Supplier Portal on employment, equality, safety, training the stages of the supply chain; and aim companies willing to work with ASELSAN In the sessions, participants elaborated and health; and to uphold ethical values. at reaching a sustainable, lean and agile can file an application via the corporate on foreign trade activities, digitalization, available at the ASELSAN is bound by the contracts it structure. website. Quotes, order management, supplier relationship management, corporate website. signs for the project-based activities, quality process management, supplier management with metrics, category- and its supply chain is involved in the In order to incorporate the principle delivery management, supplier based supply management, embargo performance of all activities from of sustainability into supply chain application management, supplier management, and early involvement of contract execution to project delivery and processes, share good practices in this master data management and supplier the supply function in processes. Topics, subsequent stages. area, and monitor the developments performance management activities are risks and solution proposals in relation and novelties in the sector, ASELSAN performed on the Portal. The portal helps to more effective supply activities at The Industrialization and Supply became a member to the Supply Chain manage all supply chain activities on a ASELSAN, as well as innovations that Directorate under the Corporate Management Association (TEDAR), fast, reliable, traceable and measurable might be incorporated into the supply Governance Vice Presidency, and the which is a non-governmental organization platform. Furthermore, the Company process were also discussed. planning, production and logistics with a significant role in the Turkish developed a platform, “Gücümüz Bir organizations under the Business Sectors business world, in 2017 upon the (Powerful Together)” to communicate At the end of the workshop, matters are in charge of the management of approval of the Board. with suppliers more effectively. Further discussed and decisions made in the ASELSAN’s supply chain. information on this platform is provided sessions were communicated to the At ASELSAN, supply chain risks, the risks under a separate heading below. entire team, after which final evaluations The Transformation Project Aimed arising from the dynamics of the sector, were made. the risks linked with suppliers, customers At Operational Excellence Target ASELSAN Supply Workshop The Company launched a transformation or production activities, as well as those The first edition of the ASELSAN Supply Outcomes of this workshop are project in 2018 to establish a supply unpredictable risks such as global crises, Workshop was held in 2018. Gathering anticipated to provide significant function that regularly monitors pandemics, natural disasters and terrorist the staff active on site that had the contributions to the efforts aimed at worldwide recognized supply approaches, incidents are identified and monitored by chance for exchange of information, devising a roadmap to improve supply adopts good practices, easily adapts relevant functions. Risks considered to the event proved quite fruitful and activities. to novelties, welcomes development, be at a critical level are also monitored paved the way for numerous structural and provides operational excellence. and measured, after which short- and transformation and innovation efforts.

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SUPPLIER EVALUATION

Driven by the sustainability principle it pursues in its activities, ASELSAN monitors the targeted economic, environmental and social performance in its global supplier chain composed of thousands of registered suppliers.

Driven by the sustainability principle it • Production/Design Evaluation pursues in its activities, ASELSAN monitors • Technological Level, Quantitative In 2019, ASELSAN the targeted economic, environmental and Adequacy and Diversity of the evaluated the social performance in its global supplier Production Infrastructure chain of thousands of registered suppliers, • Testing and Workbench shared language in supplier selection and Each material/material group business environmental and and builds supplier relations in compliance Infrastructure audit stages. In this regard, ASELSAN sectors procure have different functions with laws, human rights, and its corporate • Compliance with Applicable ASELSAN started social performance ethical rules. encourages suppliers to comply with and dynamics, which requires the Production/Audit Standards the Company’s sustainability mindset Company to implement different supply development of 106 companies • Training and adapt to innovative practices, while strategies for relevant materials/material The main criteria ASELSAN seeks in the • In-Production Audit Capabilities efforts for a and started companies while measuring and evaluating incorporating its expectations in the groups. To this end, the Kraljic Matrix suppliers include technology infrastructure, written contracts with suppliers and is used to categorize the materials and ASELSAN’s supply policies can be Supplier Risk collaborations qualified staff, comprehensive quality monitoring the continuity of these classify them under “Supply Risks” and found at the corporate website of system, solid financial structure, and full practices regularly. “Impact on Profitability” to determine Management with 72 of them. the Company. In supplier selections, compliance with ASELSAN’s objectives appropriate supply strategies. Such ASELSAN does not include in the supply and policies, Environmental Management, Supply Risk Management management strategies will help System aimed Occupational Health and Safety chain those companies where it identifies Managing the risks related with the critical suppliers, in particular, develop at effective Management standards and labor laws, as non-compliance with its criteria. supplier ecosystem is essential for themselves effectively. specified in ASELSAN’s supply chain policies These companies are notified of their ASELSAN to achieve business continuity management of shortcomings and the evaluation process and international standards. The criteria and long-term goals. ASELSAN started Sub-Industry Capacity Program existing supplier ASELSAN seeks in supplier evaluations are is initiated again provided they rectify the development efforts for, and plans to The Company started works to establish explained below. reported shortcomings. The companies in deploy, a Supplier Risk Management a “Supplier Capacity Management risks. which ASELSAN identifies improvement System for the purposes of ensuring System” in 2019 for the purposes of • Matters of Administrative Evaluation areas in terms of environmental and effective management of existing effectively monitoring, managing and • Occupational Health and Safety social criteria go through follow-up supplier risks. The aim with this System developing the capacities of sub-industry Practices audits, and their progress is monitored. is to have close contact with suppliers firms; and ensuring that ASELSAN’s • Environmental Management System This helps encourage the companies and perform risk analyses; assess the needed supply items are delivered Practices failing to fully perform their social and impact and likelihood of suppliers’ promptly, thoroughly and cost-effectively • Financial Structure legal responsibilities to tackle their risk criteria including but not limited as per the operating fields of the sub- • Personnel Proficiency and Competency shortcomings and fulfill their obligations. to financial, managerial, legal, ethical, industry. As part of the first phase of • Certifications (ISO, NADCAP, Security of Premises etc.) quality, logistic, security, reliance, social these works, an algorithm was developed In 2019, ASELSAN evaluated the and environmental risks; calculate risk whereby the past shipment data, open environmental and social performance scores for each supplier; and identify orders etc. of the Company’s sub- • Quality System Evaluation of 106 companies and started • Functioning and Control of Quality supplier-specific corrective actions and industry firms is evaluated and capacities collaborations with 72 of them. Management System improvement measures as necessary. are monitored. The program will help • Resource Management continuously monitor and balance ASELSAN suppliers’ adoption of national • Procurement Process and Supplier suppliers’ capacities and contribute to and international standards such as ISO Management the sustainability of the ecosystem. 9001, AS 9100, AQAP and CMMI in their • Product Realization Process • Measurement, Analysis and operations makes it possible to use a Improvement

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SUPPLIER EVALUATION R&D organizations

Universities

Among its approved suppliers, ASELSAN identifies Subcontractors the companies with the potential that matches its growth targets, and signs Strategic Cooperation Agreements. Subsidiary Industry

Strategic Cooperation Agreements to regularly monitor the performance of From among its approved suppliers, existing strategic partners and identify In 2019, ASELSAN ASELSAN identifies those firms that potential new partners on an annual signed Strategic create value-added products and designs basis. in a critical field for the Company, deliver An Exemplary Industrialization also defined as subcontractors, with Cooperation an outstanding performance in this Suppliers that execute Strategic Model for the Sub-Industry project management, supply and field and have a potential in alignment Cooperation Agreements are expected ASELSAN’s Agreements Works have been initiated to help supplier management and configuration with ASELSAN’s growth targets. Later, to show progress in such areas as carry out sub-industry activities more management capabilities alongside industrialization with 13 more ASELSAN signs Strategic Cooperation localization, product improvement and effectively and allow medium firms in production or design competencies. companies, raising Agreements with these firms. cost reduction. In 2019, the Company terms of size and competencies to extend The plan is to continue working model is signed Strategic Cooperation Agreements industrialization efforts. The aim was together with universities and R&D structured in the number of They are ASELSAN’s priority suppliers with 13 more companies, raising the to implement the defense industry’s organizations such as TÜBİTAK either cooperation in their respective operating areas number of cooperation agreements to 36. industrialization model in the sub- directly or indirectly at each stage of parallel with the and eligible for the grants provided by industry processes of ASELSAN. the industrialization process. In order to ASELSAN. A commission was established The List of ASELSAN’s Strategic industrialization agreements to 36. implement the industrialization model Partners: ASELSAN’s industrialization model more effectively, ASELSAN started pyramid of the is structured in parallel with the works on dividing approved sub-industry industrialization pyramid of the Defense firms into subcontractor and sub- Presidency Industry Presidency. According to the industry classes in the last quarter of of Defense model, the base of the pyramid will 2019. This classification will help give consist of numerous sub-industry turnkey assignments to subcontractors Industries. firms - mostly SMEs - with expertise as per their system level, which will in a certain production or design enable them to create their own supply field, whereas the middle layer will ecosystems and provide full support to be composed of medium-sized firms, the industrialization model.

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SUPPLIER EVALUATION

ASELSAN Firm Bank

11 Banks 85 Firms Loans Extended: Introduction of performance scorecard practices TRY 400 million into procurement processes is intended to prioritize successful firms in requests for proposal and attain Agreement with ASELSAN No Collateral a performance-based purchasing process. the Bank Purchase Order Prompt Payment

Supplier Scorecard into purchase and sale processes is Under the supplier scorecard system, “Gücümüz Bir (Powerful Together)” Supplier Scorecard development intended to prioritize successful firms firms are evaluated in the following five Platform Supplier Scorecard activities were started in 2019 for the in requests for proposal and attain a categories: www.gucumuzbir.com ASELSAN So far, 85 firms development purposes of measuring the performance performance-based purchasing process. established a pioneering and innovative have utilized the of approved sub-industry firms with a Effective monitoring of the performance • Quality: The score according to the platform for the purposes of fostering activities were scorecard. Scorecards will help ASELSAN scores will also encourage suppliers to inspection of firms’ deliveries the bond with suppliers, boosting the Supplier Financing started in 2019 look into the performance of suppliers improve their performance so that they • Delivery: Firms’ compliance with the effectiveness of localization efforts, System with the and determine from which firm it will can receive more purchase orders, and delivery dates as mutually agreed in reducing Turkey’s reliance on foreign for the purposes request a quote. Under this practice, ensure a business continuity model where purchase orders resources, and run partnerships with total loans taken performances in 2019 were measured performance plays a significant role. • Audit: The result of the most recent suppliers under an integrated structure. of measuring the and the system was launched in 2020. audit performed in the past three years Named “Gücümüz Bir (Powerful out equaling performance of Introduction of scorecard practices • Customer Feedback: Surveys Together);” the platform was launched in TRY 400 million. completed by ASELSAN’s Supply and April 2020. approved sub- Quality staff on the firm industry firms • Supplier Feedback: Companies using The platform is an interactive platform special processes or working on special with a target group composed of with a scorecard. processes evaluate one another ASELSAN’s existing and potential suppliers. Gücümüz Bir (Powerful Quality Supplier Financing System Together) serves suppliers via a corporate ASELSAN provides suppliers with website and mobile applications. financing support, as well. To this end, the Company launched the first Supplier The Platform is intended to strengthen Financing System of the defense industry relations with existing suppliers, in 2013. The Financing System enables introduce the ecosystem with potential, Supplier approved sub-industry firms, which have value-adding suppliers, and contribute to Feedback Delivery a long-standing cooperation with the the sustainability of ASELSAN’s supply Company, to contact the Banks registered ecosystem. Supplier within the system by submitting their Scorecard purchase orders to take out loans and It will also help inform suppliers on the receive letters of guarantee without the global and local developments/news as need for additional collateral, guarantor well as on the developments regarding etc. The scheme below is an illustration ASELSAN; enhance their contributions of the system. The Company signed to localization efforts; provide them contracts with three additional banks the chance to benefit from ASELSAN’s in 2019, raising the number of partner competencies; and assist them in Customer Audit banks to 11. So far, 85 firms have used reaching the human resources they need. Feedback the system and TRY 400 million in loans were extended. The system has contributed to the financial sustainability of the firms within ASELSAN’s ecosystem.

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SUPPLIER EVALUATION

The purchase rate from local suppliers, which was 33% in 2008, has moved to over 65% as of 2019 as localization efforts have accelerated.

LOCALIZATION EFFORTS • Validation and approval process for 9 WITH LOCAL COMPANIES products with a completed prototype is As per the ongoing. • The Company finalized efforts with procurement Local/national product development around 30 firms to localize 210 activities have become much more projections for the different product ranges, 29 of which effective thanks to the ASELSAN Local are featured in brochures; local orders next three years, and National Product Development have been opened for 45 products. It also provides guidance for applicant by the ASELSAN staff, who provide Board that conducts various works to the amount that • As per the procurement projections for companies to benefit from the support guidance when and as necessary. The reduce Turkey’s foreign reliance and the next three years, and regarding 210 packages of KOSGEB (Turkish Small aim is to ensure local development of ASELSAN issued improve the share of local components remained in the products that are now local: and Medium Enterprises Development the products our Country needs, expand in the products in line with ASELSAN’s “Memorandum of - The amount remaining in Turkey Organization) and Ministry of Industry R&D and production ecosystems, and country thanks Local and National Product Development equals USD 71 million; and Trade, and issues a memorandum of assist firms in strengthening their Understanding” to the now local goals. understanding for the companies as and competencies. - Earnings correspond to USD 28 documents for 16 million; when needed. products is USD 71 The Board has carried out detailed - And the share of local products at The works performed within this examinations and studies on some firms and came million. more affordable prices than that of The Strategic Product Support scope will reduce foreign reliance to 20,000 products up to date. As a result overseas prices has reached 94%. Program by KOSGEB meet Turkey’s needs via production to the fore as the of these activities, a decision was made ASELSAN issued “Memorandum of activities based on national and local to develop and produce, using local organization that Works towards including new products Understanding” documents for 16 firms resources, while eliminating covered/ sources, 300 products (which equaled to be determined by Business Sectors as part of the Strategic Product Support implicit embargos. They will also help issued the highest 90 brochures) in the first phase. With in the localization model continue. package introduced by KOSGEB to assist enterprises of all sizes involved in this the most recent launch, the number number of MoUs Within this scope, all import products with localization and narrow the current process attain higher visibility and boost has risen to 51, which equals 140 are regularly examined so as to identify deficit. Indeed, ASELSAN came to the their competitive edge in international brochures covering 450 products. The in the defense priority products in terms of critical fore as the organization that issued the markets. Firms that play a role in this Industrialization and Supply Directorate technology, export restrictions, costs highest number of MoUs in the defense process acquire critical technologies, industry. initiated product development and and lead time. Brochures relating industry. Around 90% of the applicants, serve other key players of the defense localization efforts with the design to these products are prepared who also hold ASELSAN’s MoU, were industry, and get the chance to venture teams under Business Sectors and the accordingly. Companies interested in approved; this marked a significant into foreign markets and start export local manufacturers that have design these products review the brochures contribution to localization efforts. operations. With this process, the share capabilities. Since September 2018, launched via different channels and file of local components in our products these activities are ongoing. their applications via the Gücümüz Bir Tech-Driven Industry Initiative will grow, which will help reduce foreign (Powerful Together) Platform deployed ASELSAN consistently takes on the reliance and contribute to the narrowing As part of the aforementioned activities: in mid-April. Applications are evaluated task of developing and expanding the of the current deficit. by the ASELSAN National and Domestic ecosystem it belongs to. ASELSAN issued • Over 200 firms have filed some 500 Product Development Board, which gives a Memorandum of Understanding to applications for the brochures covering start to product development activities 10 SMEs for the “Tech-Driven Industry 450 products. for eligible products. Imitative” announced by the Ministry of • Negotiations, production or validation Industry and Technology of the Republic processes for over 150 products are of Turkey. These processes are monitored ongoing.

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ENVIRONMENTAL MANAGEMENT

In 2019, ASELSAN delivered distant environmental protection training to 6,248 employees.

ASELSAN is aware that leaving a Environmental Management System. As more inhabitable world for future part of the efforts toward minimizing As part of the generations requires protection of environmental impacts, ASELSAN efforts toward the environment it interacts with. To launched the Zero Waste Initiative at this end, it pays utmost attention to its facilities in 2019. The Company was minimizing managing environmental impacts of its performing waste sorting and reduction environmental activities and operations most effectively, activities prior to the introduction of using resources responsibly, developing the Zero Waste Regulation. Currently, it impacts, ASELSAN environmentally-friendly business adheres to all the practices specified by launched the Zero processes, and performing environmental the regulation at its facilities. efficiency of sustainability practices. The Environment Day on June 5, a painting impact assessments. Laid out by the ESB meetings are held at least once a contest is organized every year with the No environmental Waste Initiative at Senior Management, the Environmental The ASELSAN Environmental Safety year with the participation of relevant participation of 5th, 6th, 7th and 8th grade Policy with a focus on Sustainability Board (ESB) complements the persons from each facility; internal students for the purposes of raising the accident occurred its facilities clearly demonstrates ASELSAN’s Company’s sustainable practices and inspections are carried out accordingly. environmental awareness of children. in 2019. commitment to effectively managing the works to determine the measures for Furthermore, an environmental The effectiveness of these activities is in 2019 thanks to environmental impacts of its operations. environmental protection and safety, handbook is given out to employees for evaluated by the Senior Management ASELSAN’s robust while evaluating the issues regarding implementation at the facilities. at Management Review meetings held Zero Waste Initiative Kicked Off the implementation of such measures. during the year. plans, proactive ASELSAN’s works aimed at mitigating The ESB monitors and maintains the Full Compliance with the ISO 14001 environmental impacts are performed implementation of environmental Environmental Management System No environmental accident occurred in approach and at Macunköy, Akyurt and Gölbaşı safety measures, determines mitigating As an environmentally-sensitive company, 2019 thanks to ASELSAN’s robust plans, rigorous works. facilities in line with the ISO 14001:2015 proposals, and improves the quality and ASELSAN organizes regular online proactive approach and rigorous works. environmental trainings for employees The Environmental Policy is at the core of every year. In 2019, ASELSAN delivered ASELSAN’s environmental management distant environmental protection training approach aimed at an inhabitable to 6,248 employees. Furthermore, in world for future generations. It is line with the ISO 14001 Environmental communicated to internal and external Management System and applicable stakeholders via in-house communication laws, drills are organized so as to ensure means and the corporate website. employees know how to take necessary action in the case of chemical spills and As part of ASELSAN’s fight against leaks and act in a prepared manner when climate change, the Company undertakes faced with such environmental accidents. efforts with a focus on managing climate ASELSAN organizes events and programs and environmental risks and reducing in line with its principle of leaving an carbon emissions, while monitoring inhabitable world to future generations and reporting its annual sustainability and raising employees’ and other performance transparently. stakeholders’ environmental awareness. As part of the events to celebrate World

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CLIMATE CHANGE AND CARBON MANAGEMENT

ASELSAN’s greenhouse gas emission management is a part of its responsible energy management approach in its operations and in accordance with the ISO 14001 and ISO 14064 standards.

EMISSIONS AND ENERGY Active Fight Against Global Climate Responsible and Effective Carbon Emission Measurements in ASELSAN’s energy Change Management of Resources Line with International Standards The Company ASELSAN uses resources responsibly and ASELSAN’s GHG emissions are managed The emission calculations at ASELSAN management efficiently, and its management approach in line with the ISO 14001 and ISO GHG Emissions from ASELSAN’s Own are performed by using the calculation conducts activities is based on the is based on informed and efficient use of 14064 standards. As specified in its Sources methodologies specified under the for transition energy in its operations. The Company’s Environmental Management Policy, Scope 1 Guidelines for National Greenhouse principles of the energy management is in line with ASELSAN is committed to mitigating the “Direct greenhouse gas emissions” are Gas Inventories (2006) by the to the ISO the principles of ISO 50001 Energy impacts of global climate change and calculated as greenhouse gas emissions Intergovernmental Panel on Climate ISO 50001 Energy Management System. In 2019, efforts monitoring and transparently reporting from ASELSAN’s own sources Change (IPCC), ISO 14064-1, and the 14064:2018 Management were undertaken for the ISO 50001 its greenhouse gas emissions. Therefore, Greenhouse Gas Protocol: A Corporate version. Energy Management System certification sources of emission at ASELSAN Scope 2 Accounting and Reporting Standard System. at the Macunköy, Akyurt and Gölbaşı facilities are identified, and greenhouse “Electricity indirect GHG emissions” (Revised Edition). The emission factor facilities. Energy management activities gas emissions are calculated, reported are calculated as GHG emissions from values used as a reference point in pertain to all the processes/production and validated by an independent firm consumption of purchased electricity calculations are based on the IPCC processes within the Company and are on an annual basis. The 2019 data was (2006), the International Energy Agency’s run in parallel with other integrated validated on April 13 and 14, 2020 as per Scope 3 (IEA) 2015 Report, and DEFRA 2019. management systems. Energy density the ISO 14064 standards. “Other indirect GHG emissions” are reduction targets set within the scope calculated as other indirect emissions Data on emissions from ASELSAN’s of the strategic plan are handled by ASELSAN’s carbon emission targets are such as personnel shuttles, waste water, activities is provided in the table below. the functions in charge of managing set by the Senior Management in line waste disposal, water supply, use of The Company expanded the Scope 3 the existing energy infrastructure at with the strategic goals. A Greenhouse materials (food, glass or paper from emission calculations for 2017 at the the facilities. To this end, efficiency Gas Management Plan is prepared and cafeterias), travels (flights), raw material end of 2016. Emissions from transport studies are performed on the resources implemented to reach the targets. The procurement and highway transport. and distribution in the supply chain, from consuming a significant amount of CDP Board and its representatives waste generated by operations, and from energy, and the findings are evaluated via coordinate the activities of periodically the consumption of food and beverages analyzers and software systems. reviewing and improving the practices were included in the Scope 3 calculations under the Management Plan. for the first time in 2017 thanks to reliable data access. Hacettepe and İvedik satellite facilities were also included in the scope of the 2019 report. Activities are ongoing for transition to the ISO 14064:2018 version and the scope will be further expanded in 2020 thanks to the data the Company will retrieve.

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CLIMATE CHANGE AND CARBON • The emission density for the base ASELSAN’s emission values are validated year, 2016, was calculated as 0.0136 by independent organizations. While According to the MANAGEMENT tCO2e/TRY 1,000. This shows that the the Company monitors emission unit emissions for Scope 1 and Scope trends closely, it pays utmost attention results of the 2 GHG dropped by 70.71% between to environmental sustainability and 2016 and 2019. prefers a growth model with minimum 2019 reporting, impact on the environment during its ASELSAN attained CDP Reporting with a Score of A- operations. Employees are among the ASELSAN places the holistic sustainable key contributors to carbon management. A- score for two approach at the core of its operations Accordingly, ASELSAN undertakes and strategy, as demonstrated by the efforts aimed at reducing greenhouse gas consecutive ASELSAN aims to reduce Scope 1 and 2 emission global success it attains in the CDP emissions with the participation of all years and thus intensity by 2022 per unit turnover and by 64.12% reporting which is presented to investors employees. For ASELSAN, efficient use and all stakeholders. As per the 2019 of resources is an indispensable principle maintained per base year, in line with the GHG emission reporting results, ASELSAN maintained for sustainability. The projects performed its successful management plan that is annually updated to its successful position by scoring A- for to this end are carried out by the two consecutive years. The reporting Technological Infrastructure Directorates performance. report changes. results for 2020 will be disclosed to the of each facility. In the meanwhile, public in the last week of August. Transport, Security, Energy, Healthcare and Automation Systems Business In 2019, the turnover-based emission Scope 1 Scope 2 Scope 3 Carbon management is among the Sectors regularly conduct projects ASELSAN works reduction target was changed. The cornerstones of ASELSAN’s sustainability and feasibility studies aimed at using target was updated by taking the 2016 11,999 38,651 5,124 management. Therefore, the Company renewable energies and clean energy. to ensure efficient existing turnover and the effectiveness prepares a greenhouse gas inventory 2017 12,420 35,983 15,811 of reduction projects into account. and has external audit firms validate its Energy efficiency and emission use of energy not Accordingly, ASELSAN aims to reduce 2018 10,738 37,663 15,000 performance on an annual basis in line reduction projects implemented during only in its own Scope 1 and 2 emissions by 2022 per with the ISO 14064 Greenhouse Gas the reporting period helped attain unit turnover and by 64.12% per base 2019 14,148 37,786 15,661 Reporting Standard. significant energy savings thanks to the activities but also year, in line with the GHG emission effective deployment of the automation by end users via management plan that is annually • ASELSAN’s emission value per unit ASELSAN is aware that employees’ infrastructure, replacement of 10,500 updated for the CDP Climate Change between January 1 and December 31, contributions are critical for sustainability florescent bulbs with LED bulbs, Reporting. the products and 2019 was 0.0040 tCO2e/TRY 1,000. to be ingrained in the corporate culture improvements in compressors, and facade services it offers. • Considering that the emission density and effectively integrated with its insulation practices. In addition to these calculated for the year 2018 was 0.0064 operations. To this end, it organizes improvements at the facilities, paper

tCO2e/TRY 1,000, the unit emission training courses and awareness-raising consumption was reduced under the values of Scope 1 and Scope 2 GHG events on carbon management for “R&D Incentive Automation Project” and dropped by 35.37% between 2018 and employees. There are Environmental “Supply Consolidation Project,” whereas 2019. Officers in charge of the matters on electricity consumption was reduced by climate change and emission monitoring preventing excessive operation of thermal at the Company. Activities performed cycle chambers under the “Production and reports drawn within this scope Follow-up System” program. provide input to the Management Review meetings, while the carbon management performance of the Company is evaluated by the Senior Management. Suppliers are also updated on carbon management during the supplier visits paid throughout the year so as to raise their awareness on this issue.

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CLIMATE CHANGE AND CARBON MANAGEMENT

Water management practices at ASELSAN are in full compliance with laws, as is the case in all environmental activities.

WATER MANAGEMENT Water Consumption Cut by 10% Water recovery In addition to water management ASELSAN is aware that water resources efforts under the ISO 14001:2015 systems for are vital for the continuity of not only its Environmental Management System, the specific production operations but also of life on our planet Company monitors water data as part of and therefore must be preserved. To this the CDP Climate Change reporting. Every devices help attain end, its water management approach year, targets for water consumption are is aimed at responsible, effective and determined; data collected from analyses significant water efficient use of water in its facilities and is presented to the senior management operations. at the Management Review meetings. savings. Water recovery systems for specific The Company conducts rigorous production devices help attain significant water management activities at the water savings. Communication efforts to Macunköy, Akyurt and Gölbaşı facilities. raise awareness on water consumption Water is a significant input for some include posters, informative notes of ASELSAN’s production areas, while and campaigns across the Company. playing a significant role for the Company ASELSAN reduced water consumption by to perform administrative services in a 10% compared to the previous year. suitable manner.

Water management practices at Neutralization and precipitation methods ASELSAN are in full compliance with are implemented at the Macunköy laws, as is the case in all environmental chemical wastewater treatment plant, Neutralization activities. Wastewater discharge while there is a biological package and precipitation standards are set in accordance with the treatment plant for domestic waste at Regulation on Wastewater Discharge the Gölbaşı facility. Domestic wastewater methods are to Sewers by ASKİ (Ankara Municipality is discharged directly to sewer at the implemented at Waterworks). Wastewater is discharged Akyurt facility. Furthermore, chemical from the Macunköy and Gölbaşı facilities wastewater is collected in tanks at the the Macunköy to the Sakarya catchment basin. In 2018, Gölbaşı and Akyurt facilities and disposed the Macunköy chemical wastewater of by authorized companies. chemical treatment plant and Gölbaşı biological wastewater treatment plant discharged 48,705 m3 and 15,699 m3 of water, respectively. treatment plant.

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CLIMATE CHANGE AND CARBON MANAGEMENT

ASELSAN’s main environmental goal is to minimize waste generation and reduce consumption of natural resources. The Company regularly monitors the amount of waste produced at its facilities.

ZERO WASTE and appropriate disposal and recycling MANAGEMENT of waste are carried out effectively by In 2019, a total the Company. Separation of waste by type and temporary storage of waste 1,546,473 kg of ASELSAN manages waste based on the does not harm the environment and risk waste management hierarchy and in a waste was sorted occupational health and safety practices. manner to minimize the environmental Waste is categorized under the classes at the Macunköy, impact of the waste generated from of hazardous, non-hazardous, medical its activities. The hierarchy starts with Akyurt and and packaging waste, while separate reducing waste at its source, followed by storage areas for each type of waste are reuse and recycling, and finally, disposal Gölbaşı facilities. available at all facilities. Waste storage of waste. and disposal activities are performed in accordance with waste management Waste management activities are in regulations. Waste oil classification parallel with the ISO 14001:2015 analyses are carried out by the licensed Standard, while the designated organizations authorized by the Turkish department handles relevant practices Ministry of Environment and Urban and reportings as per environmental Planning and accredited by TÜRKAK. regulations.

The tables below provide the total Minimizing the Amount of Waste amount of waste produced in 2019. Produced is Number One Priority... Recyclable metals and packaging waste ASELSAN’s main environmental goal is are monitored regularly under the non- to minimize waste generation and reduce hazardous waste class. consumption of natural resources. The Hazardous Non-Hazardous Company regularly monitors the amount In 2019, a total 1,546,473 kg of waste Facility Waste (kg) Waste (kg) Total In addition to the of waste produced at its facilities. In was sorted at the Macunköy, Akyurt and line with the Environmental Policy Gölbaşı 15,894 180,030 195,924 existing waste Gölbaşı facilities and management system, the aim is to minimize the waste generated from Akyurt 80,078 580,620 660,698 management production activities, sort waste at the Macunköy 187,731 502,120 689,851 activities, source prior to disposal, and thus recover it at maximum level. To this end, activities Total 283,703 1,262,770 1,546,473 ASELSAN initiated aimed at accurate and systemic sorting, the Zero Waste In October 2019, ASELSAN initiated the Zero Waste Project for efficient use of resources, prevention of waste, minimization of waste generation, and waste recovery, Project in October in addition to the existing waste management practices at the Company. 2019.

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CLIMATE CHANGE AND CARBON MANAGEMENT

In addition to waste sorting stations at offices and working spaces, container boxes for waste batteries, electronic waste and vegetable oil, as well as clothing and toy bins are placed at facility entrances and parking lots.

The following activities were carried out The stations helped the Company sort • The composting machine installed at Breakdown of Waste Sorted by Type Cleaning and under the project: the following types of waste: ASELSAN helps turn biodegradable Use of paper cups • Face-to-face trainings were - Biodegradable waste, waste collected in Waste Separation Type of Waste Percentage delivered to Cleaning and Refectory - Paper waste, Stations and vegetable waste Refectory staff (%) at working spaces staff; employees were briefed via - Plastic waste, generated from cooking activities into received face-to- announcements and brochures. - Glass waste, compost. Food Waste (Animal 42 was eliminated face trainings as • Waste separation stations were - Metal waste, and • Eliminating Use of Paper Cups: Shelter) for the purposes placed at the Akyurt, Gölbaşı and - Other waste. Use of paper cups at working spaces part of the Zero Macunköy refectories, which started was eliminated to minimize the Plastic 24 of minimizing the separating plastic and other waste. • In addition to waste sorting stations at consumption of natural resources. Waste Project. Biodegradable (Compost) 19 consumption of After separation, waste food on trays is offices and working spaces, container Paper cups were replaced with the donated to animal shelters. boxes for waste batteries, electronic glass tumblers and porcelain cups Paper 11 natural resources. • Container bins at working spaces and waste and vegetable oil, as well as distributed to all employees. offices were removed and replaced clothing and toy bins are placed at • Collecting Pharmaceutical Waste: Glass 4 by waste separation stations at facility entrances and parking lots. Pharmaceutical waste bins were placed designated common use areas. at infirmaries to prevent inaccurate use Furthermore, 2,780 clothing items and of medicinal drugs that are expired, 287 toys collected in clothing and toy damaged or contaminated. bins were donated to the Turkish Red • Project Launch: On December 10, Crescent Society. 42 liters of waste 2019, the “ASELSAN Zero Waste vegetable oil collected thanks to oil Project Launch Ceremony” was held collection tanks were handed over to a at the Hacim Kamoy Integration Hall licensed company for recycling purposes. of the Macunköy Facility, with the participation of Her Excellency, Emine Erdoğan.

In a short span of time, the Company sorted and thus helped 60 tons of waste be recycled or recovered, which would otherwise be directly dumped, from the launch of the Zero Waste Project on October 21 to December 31, 2019.

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CLIMATE CHANGE AND CARBON MANAGEMENT GREEN SOLUTIONS IN OPERATIONS

Thanks to ASELSAN’s sensitivity for environmental ASELSAN strives to minimize the environmental compliance, the Company did not face any impact of its operations via use of “green infringement penalty or punitive sanction under the technologies.” Environmental Law and related regulations in 2019.

ENVIRONMENTAL Management of hazardous substances INFORMATION SYSTEMS Secure Print System COMPLIANCE is critical to guarantee environmental The Corporate Electronic Document An Environmental compliance. This is why the Company Management System (EDMS) minimized As part of the ASELSAN believes that environmental receives consulting services so as to printed correspondence at ASELSAN Performance ASELSAN is in constant interaction with sustainability can be achieved by, first and Data Center fully perform its obligations under the in 2019. In the meanwhile, the secure the environment due to the nature of its foremost, using all resources efficiently Report, which Agreement concerning the International printing system in use centralized Project, ASELSAN operations and therefore always manages and effectively, and determines its Carriage of Dangerous Goods by Road printers and their management/ covers the them in full compliance with laws and efficiency targets in business processes aims almost (ADR) and the Regulation on the maintenance, which ensured security, regulations. ASELSAN is aware that accordingly. Since the Information activities in the Carriage of Dangerous Goods by Road. savings and efficiency. The Company 100% availability environmental compliance efforts must be Systems Management approach is based In order to gain further effectiveness in also started to monitor printer printouts undertaken by considering the needs of all on such efficiency targets, the Company previous year, these activities, the Dangerous Goods regularly to unnecessary inessential in line with the stakeholders. To this end, it has adopted prefers environmentally-friendly systems Safety Software was integrated with the printing of documents. is drawn at the the ISO 14001:20015 Standard for with minimum environmental impact international Tier core system. Furthermore, environmental compliance with environmental laws and when it purchases IT hardware. It also end of every year impact assessments are regularly carried 3 standard. other requirements during these efforts. strives to reduce energy consumption out for all operations, while attention and presented The Company also briefed suppliers on with a focus on the Green IT principles in is paid to the environmental impact this topic during the visits paid in 2019 data center design. to the Senior management approach and performance and encouraged all stakeholders to reach of suppliers in selection processes. Management. environmental compliance. Data Center Project As part of the Data Center Project, the The Environmental Officer is in charge As part of compliance with environmental Company aims almost 100% availability of obtaining, updating and renewing laws, the Zero Waste Project was initiated in line with the international Tier 3 necessary environmental permits, in 2019. ASELSAN expanded the scope of standard. Deployment of measurable licenses and documents for facilities and existing waste management activities at and controllable data centers helps activities. The Environmental Officer the facilities to reach compliance with the attain significant energy savings, also issues monthly evaluation protocols Zero Waste Regulation. reduce greenhouse gas emissions and and reports the environmental status reach compliance with the Green IT of the facility to the Facility Officer. An Benchmark. Environmental Performance Report, which covers the activities in the previous year, is drawn at the end of every year and presented to the Senior Management.

Thanks to ASELSAN’s sensitivity for environmental compliance, the Company did not face any infringement penalty or punitive sanction under the Environmental Law in 2019.

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GREEN SOLUTIONS IN OPERATIONS

The Technological Infrastructure Directorates started ISO 50001 certification efforts so as to ensure that energy is used more efficiently and legal and social responsibilities are performed to the fullest extent.

Efficiency with Information Systems FACILITY MANAGEMENT This is how organizational processes Administrative Services at ASELSAN New business Virtualization of ASELSAN’s IT are reviewed regularly to monitor Recent developments are always “Predictive infrastructure contributed to flexible For ASELSAN, a sustainable consumption values and take prompt monitored to provide all services in a processes were use of resources, high availability rates management approach is a priority both action to prevent any loss of energy manner to address the requirements Maintenance” moved to the and efficient utilization of IT resources. in its activities and management of and water. Furthermore, information accurately and promptly. Construction methods are Automatic deactivation of the systems all facilities. Within this scope, Energy on energy consumption is shared with plans are developed by taking Electronic not in active use reduces energy Officers are appointed at facilities’ internal stakeholders regularly. environmental responsiveness into followed in all consumption significantly. Technological Infrastructure Directorates account, efforts are made to protect and Document to constantly monitor energy efficiency, “Predictive Maintenance” methods are even expand green areas. Smoke-free air maintenance and Workflow Integrated communication and video which is among the core objectives of followed in all maintenance activities initiatives are run at all facilities. In this activities to conference systems were deployed in facility management. to detect failures and ensure business regard, smoking areas have been marked Systems, enabling business processes, which minimized continuity with early interventions. and restricted to pavilions designated at detect failures and the Company the travel between facilities and helped The Technological Infrastructure Measurement and analytics devices used certain areas. ensure business reduce emissions resulting from travels. Directorates started ISO 50001 to this end include thermal cameras, to reduce use of New business processes were moved to certification efforts so as to ensure that thermometers, moisture meters, Some of the key services provided in light continuity the Electronic Document and Workflow energy is used more efficiently and legal conductivity/grounding meters, ph.- of our superior quality mindset are as paper significantly. Systems, enabling the Company to and social responsibilities are performed meters and vibration meters. Efforts follows: with early reduce use of paper significantly. to the fullest extent. are undertaken to adopt the principles Transition of a significant amount of of “Total Productive Maintenance” as • Facility and industry security interventions. workflows to the electronic environment Maintenance, repair and revision works an integral element of the corporate • Fire and rescue services also helps our employees use their time on heating&cooling devices, ventilation culture. As for new investments, devices • Cleaning and landscaping efficiently, while contributing to the devices, pressure air, vacuumer, aspirators, are selected and systems installed • Daycare center progress toward the “Zero Paper” goal. steam humidifiers, process coolers, with utmost attention to prefer • General documents and cargos treatment devices, transformers, UPS and energy-efficient, high-performance and • Shipment services generators, CCTVs, the entrance control automatically-controlled devices and • Personnel meals from the kitchen to system, fire detectors and extinguishers, minimize the human error. the table illumination, lifters and conveyors are • Healthcare services carried out in a systemic manner as LED-equipped fixtures, motion • Hygiene services part of facility maintenance activities. sensors, automatic faucets and local • Sports events All these systems are managed via the lighting techniques, as well as central • Transport and shuttle services Building Management System (BMS) compensation at transformers and • Hosting delegations and visitors and Integrated Data-Driven Supervisory building insulation works all contribute to • Creation of new social spaces for the Control and Data Acquisition System energy optimization. staff (SCADA) infrastructure that are inter- connected and capable of detecting the Facility-critical clean zones and server environment via sensors, performing data rooms are operated as per the ISO analytics and identifying requirements. 14644-1 and ISO 27001 standards, respectively, while the requirements of these standards are met at optimal level.

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OUR CONTRIBUTION TO SOCIAL DEVELOPMENT

While the ASİL Foundation’s focus areas are healthcare, family, schools and education, it periodically carries out campaigns and reaches out to individuals in need via these campaigns.

The ASELSAN Social Innovation Leaders (ASİL) Program was initiated to forge The ALİMHANE ASELSAN’s values with the values of project is aimed Turkey. The Program continues with its activities aimed at addressing the at helping high matters that touch people and the steps The ASELSAN Social Innovation taken for the future of the world with potential students Leaders (ASİL) Solidarity Foundation the identity and from the viewpoint of The Foundation was established in ASELSAN. acquire the sense November 2019 as a platform that acts of achieving with a social responsibility awareness to reach each and every individual in need in together and and outside the Company, stand by them Techno-Adventure Platform have fun and learn new things by playing in their difficult times, and demonstrate preparing them Techno-Adventure is a corporate the games on the platform’s website, that ASELSAN does not only produce volunteering project with a mission to and ask questions to ASEL, the mascot Targeting children reliable technologies but also offers for an engineering equip new generations with appropriate of Techno-Adventure. The platform technologies that create value. aged 6-12, the career. and beneficial habits on technology, paid visits to Armada Shopping Mall on IT and defense industry. This way, April 27-28 and Cepa Shopping Mall on Techno-Adventure While the ASİL Foundation’s focus ALİMHANE Project the project aims to encourage them May 12, 2019 as part of the activities it areas are healthcare, family, schools The Project was launched at the project is designed to become curious, inquisitive and carried out. To celebrate the report card and education, it periodically carries out Ankara Scientific High School as productive individuals, as required by day, Techno-Adventure gifts were given to enhance children’s campaigns and reaches out to individuals part of the activities of the ASİL our era. Targeting children aged 6-12, out to the students of Şehit Mustafa in need via these campaigns. Since its Social Responsibility Working Group. the project is designed to help children Erdal Middle School, while children won technology and establishment, the Foundation supports ALİMHANE is aimed at helping high acquire technology and coding literacy, prizes in the competitions organized for scientific projects, schools in need and potential students acquire the sense of coding literacy. understand the importance of local and this occasion on the platform’s social children expecting coats and boots. It achieving together and preparing them national production, gain awareness media accounts. Visits were paid to takes on the task of meeting the urgent for an engineering career based on a and self-confidence, improve their Çekmeköy Alemdağ Primary School on needs of people and delivering whatever collaborative model that empowers them skills to develop ideas, and boost their November 28, 2019 and to ASELSAN is needed promptly when Turkey suffers a to develop their projects. The model imagination through the skills they Primary School on February 6, 2020. The disaster or pandemic. consists of three stages, namely, “Dream,” “Prepare,” and “Act” (“DPA”). This is how acquire in real life. platform also met with many students ALİMHANE helps students dream first in the Ahlat district of Bitlis and Erciş to conceive an idea, receive mentoring Children can join and win gifts in district of Van between February 11 and support to learn more on their respective various contests on Techno-Adventure’s 14, 2020. In these events, children had topic, develop a project for these ideas, social media accounts, while getting the chance to improve their psycho- and then develop their products in a information on new developments. They motor skills and imagination through laboratory environment. can also visit the platform’s YouTube various experiences and workshops, while channel to watch educational videos, getting to know technology first hand.

120 121 ASELSAN Our Contribution to Social Development Sustainability Report 2019 ASELSAN

OUR CONTRIBUTION TO SOCIAL DEVELOPMENT

ASELSAN conducts projects to extend social opportunities for social welfare and scientific activities for social development. It also supports institutions so as to contribute to the society.

The Techno-Adventure Platform Social Responsibility held events at Istanbul Teknofest on ASELSAN conducts projects to extend The Techno- September 17-22, 2019 and at the Konya social opportunities for social welfare Adventure Science Festival on October 3, 4, and 5, and scientific activities for social 2019. During these festivals, children development. It also supports institutions Platform held joined space adventures and cycling tours so as to contribute to the society. To this events at Istanbul with virtual reality headsets, had photos end, the Company established Donation taken with the ASEL hologram, painted and Aid Policies, which are available to Teknofest on with 3D pens, played coding games, the public. As per the Donation and Aid competed against m-bots, and enhanced Policy: September 17- their manual skills and technology 22, 2019 and at knowledge in the workshops. Cash donations and aids can be provided to institutions, organizations, activities that the Company may consider them replenish blood reserves. Employees the Konya Science beneficial. Donation plans and the upper also support the ASİL Foundation’s foundations and associations involved Contributing to Festival on in scientific research and development threshold for donation amounts for solidarity campaigns with their voluntary activities; organizations and similar the year are determined at the General contributions and donations. communities’ October 3, 4, and entities established for social purposes; Assembly meetings; donations are made social 5, 2019. construction of schools or healthcare upon the decision of the Board. ASELSAN Akyurt Mosque facilities for the common good; and other As part of its social responsibility development is Contributing to communities’ social investments, ASELSAN took on the development is a primary duty for construction of ASELSAN Akyurt a primary duty ASELSAN, which has also disseminated Mosque, which is located outside the this culture across the Company. In this Company’s premises and open to all for ASELSAN, regard, ASELSAN employees support the visitors. This way, it met the need for which has also yearly Blood Donation campaigns of the a mosque in the Akyurt facility and its Turkish Red Crescent Society and help vicinity. disseminated this culture across the Company.

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