2017 ASELSAN Annual Report
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2017 ANNUAL REPORT ASELSAN is a company of Turkish Armed Forces Foundation. Contents 44. PAGE Communications and Information Technologies Business Sector 64. PAGE Defense System Technologies Business Sector 84 . PAGE Microelectronics, Guidance and Electro-Optics Business Sector 104. PAGE Radar and Electronic Warfare Systems Business Sector 122. PAGE Transportation, Security, Energy and Automation Systems Business Sector ASELSAN AT A GLANCE VISION Shareholding Structure To be a reliable, competitively preferred, environment- Summary Financials friendly and human conscious technology firm which Local Affiliates preserves its sustainable growth in the global market via Global Affiliates the values created for stakeholders, as well as serving its Facilities in Turkey Organizational Structure establishment purposes. Main Financial Indicators ASELSAN Human Resources MISSION MANAGEMENT By focusing primarily on the needs of the Turkish Armed Forces; to provide high-value-added, innovative and reliable Chairman’s Message products and solutions to both local and foreign customers Members of the Board of Directors in the fields of electronic technologies and system Corporate Governance integration; continuing activities in line with global targets Message from the CEO Members of the Executive Board as well as increasing brand awareness and contributing to the technological independence of Turkey. IN 2017 ETHICAL AND BASIC VALUES Marketing Activities Human Resources Management at ASELSAN National Consciousness Technology and Strategy Management Honesty and Trustworthiness ASELSAN Research Center Customer Oriented ASELSAN Academy Respect to People and Nature Highlights in 2017 Innovation and Creativeness FIELD OF ACTIVITIES Modesty Corporate Loyalty Communications and Information Technologies Business Sector Research and Entrepreneurial Spirit Defense System Technologies Business Sector Objective Driven Microelectronics, Guidance and Electro-Optics Business Sector Team Spirit and Solidarity Radar and Electronic Warfare Systems Business Sector Work Discipline Transportation, Security, Energy and Automation Systems Cost Consciousness Business Sector FINANCIAL INFORMATION Consolidated Statement of Financial Position Consolidated Statement of Financial Profit or Loss Consolidated Statement of Financial Comprehensive Income Consolidated Statement of Changes in Equity Consolidated Statement of Cash Flow Please scan the QR code to view the PDF version of this annual report. ASELSAN AT A GLANCE ASELSAN 2017 ANNUAL REPORT 001 ASELSAN Shareholding Structure Our Shareholders % 84.58 TAFF 15.30 0.12 BIST AXA Insurance Inc. Our Shareholders Share Amount (TL) Share (%) ASELSAN is a joint stock company and one of the TAFF 845,825,624.46 84.58 subsidiaries of the Turkish Armed Quoted on the BIST 153,018,684.65 15.30 Forces Foundation (TAFF). As the main shareholder, TAFF AXA Insurance Inc. 1,155,690.89 0.12 owns 84.58% of the shares and 15.30% of the shares are listed Total 1,000,000,000.00 100 on Borsa İstanbul (BIST). 002 ASELSAN 2017 ANNUAL REPORT ASELSAN AT A GLANCE ASELSAN Summary Financials Sales % 15 Exports* TL 5,360 million 52 Total Turnover TAF* 33 Public and Private Institutions* ASELSAN realized 52% of its total sales of TL 5,360 million In 2017, ASELSAN’s share price fluctuated from a low of to the Turkish Armed Forces, 33% of its sales to private TL 12.05 and a high of TL 47.22 throughout the year, and organizations or other corporate customers, and with 15% of its rounded off the year with a return of more than 150%. sales being exported. Accordingly, the market value of ASELSAN stood at USD 8.43 billion at the end of 2017. A total of TL 7,557 million of orders were signed in 2017, with an order amount of USD 6.8 billion for ASELSAN pertaining to the following years. *As a percentage of total sales. ASELSAN AT A GLANCE ASELSAN 2017 ANNUAL REPORT 003 Local Affiliates Microelectronics Industry and Trade Inc. Mikroelektronik R&D Design and Trading Ltd. Co. - The company was established in MİKROELEKTRONİK Kocaeli, Gebze in 2017 in order to perform activities related to micro Established to design and develop integrated circuits and nano dimensional devices that and electronic systems in İstanbul, ASELSAN became contain semiconductors and similar a partner in MİKROELEKTRONİK in 2010 with an 85% technological materials. ASELSAN stake. holds a 51% stake in the company. ASELSANNET Electronic and Communication Systems Industry, Trade, Construction and Contracting Ltd. Co. The company was established in Ankara in 2004 to meet the electronic and communication device requirements of civilian institutions and organizations. Since 2009, it has also added turn-key and installation work for communication system infrastructure among its activities. ASELSAN is the company’s 100% shareholder. Rocket Industry and Trade Inc. Roketsan was established in Ankara in 1988 to manufacture all kinds of missiles, rockets, rocket launchers and rocket fuel and their engines, warheads and other components, and also to manufacture, market and sell all kinds of military and civilian products and their parts where a high level and sensitive technology is required. ASELSAN holds a 14.897% stake in the company. Represents ASELSAN facilities or affiliates. 004 ASELSAN 2017 ANNUAL REPORT ASELSAN AT A GLANCE ASELSAN Precision Optics Industry and Trade Inc. ASELSAN Bilkent Micro Nano Technologies Industry and Trade Inc. The company was established in Sivas in 2014 in order to carry out research and development studies for optical, optical set and optical devices for all types of ultraviolet, visible and near infrared bands, and to manufacture and The company was established in sell such optical elements. ASELSAN holds a 50% stake in the company. Bilkent, Ankara in 2014 to carry out research and development studies for the applications of all types of semiconductors and similar technological materials, and to manufacture and sell micro and nano dimensional devices that contain these materials. ASELSAN owns 50% of the company’s capital. ASPİLSAN Energy Industry and Trade Inc. Aspilsan was originally established in the Kayseri Organized Industrial Zone on 21 May 1981 to meet the basic requirements of the Turkish Armed Forces for rechargeable nickel cadmium batteries. Today, the company produces all kinds of civil and military back-hand radios, combat tools and equipment for war, complex battery for aircraft and helicopters. ASELSAN holds a 1% stake in the company. Local Subsidiaries, Affiliates and Marketable Securities Local Subsidiaries Share Amount ASELSAN’s Share (%) ASELSANNET Elektronik ve Haberleşme Sistemleri Sanayi Tic. 3,300,000 TL 100.00 İnşaat ve Taahhüt Ltd. Şti. Mikroelektronik Ar‑Ge Tasarım ve Tic. Ltd. Şti. 55,250 TL 85.00 YİTAL Mikroelektronik Sanayi ve Ticaret A.Ş. 8,905,875 TL 51.00 ASELSAN Hassas Optik San. ve Tic. A.Ş. 6,500,000 TL 50.00 ASELSAN BİLKENT Mikro Nano Tek. San. ve Tic. A.Ş. 9,000,000 TL 50.00 ROKETSAN Roket San. ve Tic. A.Ş. 21,906,222 TL 14.897 ASPİLSAN Enerji San. ve Tic. A.Ş. 56,000 TL 1.00 ASELSAN AT A GLANCE ASELSAN 2017 ANNUAL REPORT 005 Global Affiliates ASELSAN Baku Company (Baku - Azerbaijan) Established in 1998 to carry out the promotion/ marketing and sales activities of military and civil communication devices, the company is a 100% participation of ASELSAN. ASELSAN Middle East Private Shareholding Company Limited - AME (Amman - Jordan) The company was established in 2012 with ASELSAN holding a 49% stake in the company and the KADDB Investment Group (KIG) holding a 51% stake. The company is engaged in the design, production, development and marketing activities of night vision and thermal imaging devices to meet the requirements of the Jordanian Armed Forces. Kazakhstan ASELSAN Engineering LLP. - KAE (Astana - Kazakhstan) The company was established in 2011 with ASELSAN holding a 49% stake in the company, the Undersecretariat for Defense Industries (UDI) holding a 1% stake and Kazakhstan Engineering holding a 50% stake. The company is engaged in the production, development and maintenance-repair activities for electronic devices and systems to meet military and civil requirements in Kazakhstan. ASELSAN External Profit Company - ASELSAN South Africa / ASA (Pretoria - South Africa Republic) SADEC LLC. - Saudi Defense Electronics Company The company was established in 2011 to design (Riyadh - Saudi Arabia) optical systems and to operate in the promotion and marketing of ASELSAN products in South SADEC LLC was established in 2016 with a 50%-50% Africa and neighboring countries. partnership between ASELSAN and TAQNIA DST to carry out the production, development and maintenance- repair of electronic devices and systems to meet Saudi Arabia’s requirements for radar, electronic warfare and Represents ASELSAN facilities or affiliates. electro-optical systems. 006 ASELSAN 2017 ANNUAL REPORT ASELSAN AT A GLANCE ASELSAN Malaysian Sdn. Bhd. (Kuala Lumpur - Malaysia) The ASELSAN Malaysian Sdn. Bhd. Company, a wholly owned subsidiary of ASELSAN, was established to carry out operations with regard to remote control weapon systems. The ASELSAN Macedonia Branch The ASELSAN Macedonia Branch, which was established at the end of 2014, within the scope of the Macedonian Corridor-10 Highway Toll Collection System project, operates to fulfill the local obligations connected to the project. IGG ASELSAN Integrated Systems LLC. (Abu Dhabi - UAE) The company was established in 2011, with ASELSAN holding a 49% stake in the company and IGG holding a 51% stake.