2019 Financial Results INTRODUCTION

Turkey’s the largest private and 100% domestically owned company in defense industry

A global company, intellectual property rights belong to itself and its products are in use on 5 continents as well as in more than 60 countries

Turkey’s leading supplier and exporter of land platforms

For the 11th time, the market leader in the total segments in which it operates

1 1 VISION & MISSION

Vision

Otokar’s vision is to preserve the local and national identity of its products by developing technologies in-house, also to provide continued satisfaction for its clients, employees, and shareholders with total excellence philosophy.

Mission

Otokar’s primary mission is to design, manufacture and market commercial vehicles and various defense industry products with global competitive strength, all developed to meet customer expectations.

2 2 BRIEF HISTORY

1963 1970s 1980s 1990s 2000s 2010s

. Establishment .Turkey’s first .Production of .Military armoured .Merge with the .Establishment of Otokar . Production of interciy bus 4x4 tactical vehicles by own İstanbul Fruehauf Europe (OESAS) buses under .The first Turkish vehicle under desing A.S. .Multi-wheeled armoured the license of Armoured the license of .Turkey’s first .Production of small tactical vehicle family Magirus-Deutz Vehicle Land Rover export of tactical and mid size buses .Production of City Buses production armoured vehicle .Production of .Turkey’s first electric bus Turkey’s first hybrid .Atlas Light Truck .Partnering with .Sakarya bus .Introduced new armoured Koç Group plant/factory .The prime contractor tactical wheeled vehicle, URAL of ALTAY Project .Tracked Armoured Vehicle TULPAR .POYRAZ midibus .Establishment of Otokar Land Systems (OLS) in U.A.E .Turkey’s first electric armoured vehicle, AKREP Iıe .Establishment of Otokar Central Asia Limited (OCAL)

3 OVERVIEW

Koç Holding USD 340 MILLION 45% EXPORT REVENUES IN 2019 FOUNDED IN 1963 SHAREHOLDING Ünver Holding A.Ş. TL 2.431 MILLION %100 LOCAL CAPITAL STRUCTURE 25% TURNOVER IN 2019 Other TL 1.1 BILLION 30% 10-YEAR R&D EXPENDITURES

5.000 BUSES& 3.700 TACTICAL MINIBUSES VEHICHLES 1.957 552.000 M2 APPROX. 300 EMPLOYEES PRODUCTION AREA SALES&SERVICE NETWORK PRODUCTION CAPACITY 900 (YEARLY) TACTICAL 1.600 ARMORED TRUCKS& VEHICLES LIGHT TRUCKS 1 OUT OF EVERY 3 BUSES SOLD 1.850 TRAILERS& IN TURKEY IN 2019 IS OTOKAR SEMI-TRAILERS In the total of segments in which it operates

4 HUMAN RESOURCES

5 PRODUCTION PLANT

. 552.000m2 factory with an annual production capacity of 13,050 units and approximately 2,000 employees in Arifiye/Sakarya

6 Number of Growth in Export Markets Countries 90 80 70 31 32 32 60 30 29 50 25 26 26 22 40 20 19 19 30 18 46 49 51 51 20 15 38 38 38 42 15 32 36 10 10 24 25 10 7 9 18 4 5 6 6 9 9 11 14 0 4 4 4 4 4 4

COMMERCIAL DEFENSE

Export (Million USD) Segment Based Export 400

350

300

250 53%

200 45% 150 40% 55% 39% 100 72% 63% 57% 53% 47% 89% 77% 65% 71% 55% 50 96% 27% 61% 60% 43% 47% 45% 37% 35% 73% 29% 28% 0 4% 11% 23% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

COMMERCIAL DEFENSE

7 7 AREAS OF OPERATION

2019

Total revenue : 1.057 mn TL 49 mn TL 1.034 mn TL 289 mn TL Rev. contribution : 43% 2% 43% 12% Domestic : 217 mn TL 49 mn TL 50 mn TL Armoured 170 mn TL Export : 841 mn TL - 984 mn TL 120mn TL *Export share : 80% (bus) - 95% (armoured) 41% (spare part) ** Export share : 35% (total) - 40% (total) 5% (total) * The share of exports in the relevant segment vehicle turnover. ** The share of exports in total company turnover.

2018

Total revenue : 800 mn TL 48 mn TL 586 mn TL 245 mn TL Rev. contribution : 48% 3% 35% 14% Domestic : 245 mn TL 45 mn TL 104 mn TL Armoured 192 mn TL Export : 556 mn TL 3 mn TL 482 mn TL 53 mn TL Export share : 69% (bus) 5% (cargo trans.) 82% (armoured) 22% (spare part) Export share : 33% (total) - 29% (total) 3% (total)

8 8 AREAS OF OPERATIONS

• Widest product range in the Turkish bus segment with an • The leading supplier of land defense systems. offering that includes buses from 7 to 18.75 meters with varying passenger capacities suitable for urban, intercity • More than 30.000 vehicles are actively used both in and tourism transportation.. Turkey and also in over 30 allied and friendly countries across continents by their armed forces and security • Exporting buses to more than 50 countries, particularly forces. in Europe. •Products are manufactured on order basis depending on • Working on alternative fuelled vehicles. inteded purposes, capacity and production levels.

• In light truck segment, manufacturing light truck with 8.5- ton weight capacity under license since 2013.

9 9 COMMERCIAL VEHICLES

10 DEFENSE INDUSTRY VEHICLES

11 11 COMMERCIAL VEHICLES

1 OUT OF EVERY 3 BUSES SOLD IN TURKEY IN 2019 IS OTOKAR In the total of segments in which it operates

1 out of every 3 buses sold in Turkey in 2019 is Otokar

The total of the segments in which it operates as a market leader, was the best- selling brand in Turkey.

Otokar accelerated its export activities, increased its exports by 78%.

It increased the number of Otokar buses used in passenger transportation only in France to over 2,200.

12 12 OTOKAR 2019

Won the bus tender of the Municipality of Bucharest for 400 units of 98.3 million Euro. The tender is featured to be the biggest bus export agreement of a Turkish bus brand. Deliveries started in 2018 and were completed in the first half of 2019.

We won the bus tender of Amman Municipality, received a total of 135 bus orders. Deliveries were completed in the first quarter of 2019.

Vectio C buses serving in Berlin were exhibited at the BUS2BUS exhibition in Berlin, Germany.

13 13 OTOKAR 2019

Otokar has risen up 38 positions this year, in the survey of ISO 500 Top Industrial Enterprises organized by Istanbul Chamber of Industry (ISO) for 51 years. According to 2018 results of the survey where gaint Turkish companies listed, Otokar took 49th place and continued its success.

Sultan Comfort has been renewed. Sultan's Comfort model is equipped with new features. Sultan Comfort, which attracts attention with its low operating expenses, superior performance and durability and has a passenger capacity of 29+1, can now be used in tourism, as well as student and personnel transportation with its new features.

Busworld fair, which was organized for the first time in Almaty, Kazakhstan, Otokar exhibited its Kent city bus suitable for disabled passenger transportation. In addition, users were informed about the wide range of buses from 7 meters to 18.75 meters and its large bus family.

40 right-hand drive Kent buses were delivered to Malta. Otokar's total number of buses on the streets of Malta reached to 244 wtih this delivery. Otokar branded buses generate 60 percent of the total public transportation buses operating on the island.

14 14 OTOKAR 2019

Electric bus e-Kent C which developed by Otokar’s R&D, was showcased in Busworld Europe, the international bus fair held in Brussels.

Otokar delivered 10 city buses to be used in public transportation services in Subotica, Serbia.

Otokar added Otokar Central Asia, which was established in Kazakhstan among its foreign subsidiaries with the goal of becoming a global brand.Askar Mamin, the Prime Minister of Kazakhstan presented the registration certificate of Otokar Central Asia to Ali Y. Koç, Vice Chairman of Koç Holding and Chairman of Otokar.

Otokar completed the last delivery of the year with a ceremony held on December 30th to ESHOT. The number of Otokar brand buses within the scope of Izmir Metropolitan Municipality reached to 350 with the buses delivered.

15 14 OTOKAR 2019

Supply of 8x8 armored vehicles continued in 2019 as planned.

Otokar attended to IDEX 2019 with its ARMA 6x6, COBRA II 4x4 as well as BOZOK turret, KESKIN turret systems.

Otokar participated in LAAD Defense & Security exhibition in Brazil. Otokar promoted its own design and production, different versions of its wide range armoured vehicles from 4x4 to 8x8 and tracked armoured vehicle which are capable of superior mobility, as well as turret systems.

16 16 OTOKAR 2019

Otokar introduced the country's first domestically developed electric-powered armored combat vehicle Akrep IIe at a news conference at the Otokar compound in Sakarya province.

A unique product of Otokar's innovative approach, URAL Special Operations Vehicle (SOV), the new variant of the versatile modular URAL platform, exhibited at IDEF 2019

Otokar, global land defense systems manufacturer of Turkey, exhibited 10 military armoured vehicles and its own design turret systems at IDEF 2019

17 16 OTOKAR 2019

Otokar participated in DSEI exhibition in London. Otokar exhibited its tracked armored vehicle TULPAR and its wheeled armored vehicle COBRA II.

Otokar, participated in BIDEC 2019 (Bahrain International Defence Exhibition & Conference) with its worldwide known military vehicles in Bahrain. During the exhibition, Otokar’s COBRA II Medical Evacuation Vehicle, URAL 4x4 Armoured Personnel Carrier and ARMA 6x6 Armoured Personnel Carrier were showcased.

Otokar, participated in GDA 2019 (Gulf Defense & Aerospace) with its worldwide known military vehicles. During the exhibition, Otokar showcased ARMA 6x6 with BOZOK turret and COBRA II with KESKIN turret

18 16 BACKLOG

Million Backlog 3000 2720

2500

2000 1776

1500

1000

430 500 299 76 0 2013 Year End 2014 Year End 2015 Year End 2016 Year End 2017 Year End 2018 Year End 2019 Year End TL USD EUR Total TL Appx.

. The above backlog amounts and deliveries will be held directly by Otokar Otomotiv ve Savunma Sanayi A.Ş., is related to important projects. . Backlog consists of the 8x8 armored vehicles order. . Balance orders amount to US $ 299 million.

19 19 WHY OTOKAR

Leader Strong export performance Significant compliance to corporate governance The most preferred brand in and a global company principles the 25 or more people Increased Corporate capacity passenger bus for In addition to its strong export Governance Rating to 94.02 the last 11 years in Turkey performance, Otokar strengthened its global (9.4 out of 10) as a sign that it presence with its fourth has achieved significant Sustainable growth and profitability subsidiary in Kazakhstan. compliance with corporate Total turnover increased by 14% in the Export revenue increased by governance principles last 15 years, Net profit increased by 40% on annual average in the last 10 years. Products that are 27% in the last 15 years, with the intellectual property rights annual compound growth rate. Otokar

The share of Otokar design Consistent dividend R & D capabilities and flexible vehicle sales in turnover is 98%. distribution production capability The number of patents and Regular dividend distribution New product development and speed of industrial designs has reached within the framework of delivery to market. Ability to develop to 296. profit distribution policy. products according to market needs.

20 24 FINANCIAL INDICATORS

Balance Sheet (000 TL) 31.12.2019 Current Assets 1.942.644 S.T. Liabilities 1.037.747 Fixed Assets 735.073 L.T. Liabilities 1.002.324 Shareholders Equity 637.646

Total Assets 2.677.717 Total Liabilities 2.677.717

Income St. (000 TL) 2019 2018 Change (%) Net Sales 2.430.643 1.678.661 45% Gross Profit 919.051 592.957 55% Operating Profit 463.946 231.412 101% Profit Before Tax 346.354 121.145 186% Net Profit 351.592 164.336 114%

. With the effect of exports, 45% increase in total turnover compared to last year’s same period.

21 25 FINANCIAL INDICATORS

Million 2500 REVENUE

2000

1500

1000

500

0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

TL USD

22 18 FINANCIAL INDICATORS

Million Revenue (Quarterly) Million Revenue (Cumulative) 1000 2.500 2.431 900 870 865 800 2.000 1.877 700 1.679 593 600 553 1.500 1284 500 419 400 1.000 320 300 252 236 167 419 425 200 147 500 337 329 105 95 66 78 225 100 54 50 78 0 0 2018 1Q 2018 2Q 2018 3Q 2018 4Q 2019 1Q 2019 2Q 2019 3Q 2019 4Q 2018 Year End 2019 3M 2019 6M 2019 9M 2019 Year End TL USD TL USD

23 FINANCIAL INDICATORS

Million TL NET PROFIT NET PROFIT Million TL 400 400 352 350 54 300 300 164 102 250 200

200 250 100 206 150 0 100 -28 -51 -11 50 -100 -7 2018 2019 0 1st Quarter 2nd Quarter 3rd Quarter 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 4th Quarter Total

24 27 FINANCIAL INDICATORS

SALES

Million TL 2.500 2.431

1.944 2.000

1.500

1.000

500 487

0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Domestic Export Total

. Export revenues amounted to 1.944 million TL, increased 78% compared to last year's exports.

25 29 FINANCIAL INDICATORS

Revenue (Quarterly) Revenue (Cumulative) Million TL Million TL 2.500 2431 1.000 2.250 900 2.000 1944 800 1.750 700 1.500 600 553 1.250 500 414 1.000 400 750 300 500 487 200 138 250 100 0 0 2018 3M 2018 6M 2018 9M 2018 2019 3M 2019 6M 2019 9M 2019 2018 2018 2018 2018 2019 2019 2019 2019 End of End of 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q the Year the Year Domestic Export Total Domestic Export Total

26 29 FINANCIAL INDICATORS

Sales (000 TL) 2019 2018 Change (%) Domestic 485.602 586.237 %(17) q Export 1.945.041 1.092.424 %78 p Total 2.430.643 1.678.661 %45 p

2017 2018 2019

Export Domestic 31% Domestic 20% 35% Export Domestic 65% Export 69% 80%

. Otokar domestic sales 17% lower than last year’s same period due to the contraction in domestic market, export sales 78% higher than last year’s same period. . The share of exports in turnover was 80% in 2019.

27 28 FINANCIAL INDICATORS

600 Production & Sales Units 500

400

300

200

100

0 Production Sales Production Sales Production Sales Production Sales Bus Trailer L.Trucks Armoured 2018 1Q 2018 2Q 2018 3Q 2018 4Q 2019 1Q 2019 2Q 2019 3Q 2019 4Q

Revenue Distribution LR Trailer 0,4% 2,2% L.Truck L.Truck L.Truck Trailer 2,0% Other 1,9% 1,4% Other 1,5% 11,9% 12,5% Other 14,5% Tank Bus Bus 4,5% 47,7% 34,4% Bus 43,5%

2017 Armoured Armoured 2019 44,2% 2018 34,9% Armoured 42,6%

28 31 FINANCIAL INDICATORS

Gross Profit Operating Profit Million TL Million TL 1.000 40,0% 500 25,0% 900 35,0% 450 800 400 20,0% 30,0% 700 350 25,0% 600 300 15,0% 500 20,0% 250 400 15,0% 200 10,0% 300 150 10,0% 200 100 5,0% 5,0% 100 50 0 0,0% 0 0,0% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Gross Profit Gross Profit Margin Operating Profit Operating Profit Margin

EBITDA Million TL Million TL Net Profit 500 20,0% 400 16,0% 450 18,0% 350 14,0% 400 16,0% 300 12,0% 350 14,0% 300 12,0% 250 10,0% 250 10,0% 200 8,0% 200 8,0% 150 6,0% 150 6,0% 100 4,0% 100 4,0% 50 2,0% 50 2,0% 0 0,0% 0 0,0% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 EBITDA EBITDA Margin Net Profit Net Profit Margin

29 33 FINANCIAL INDICATORS

Gross Profit Operating Profit Million TL Million TL 450 50,0% 300 35,0% 400 45,0% 30,0% 250 350 40,0% 25,0% 35,0% 200 300 20,0% 30,0% 15,0% 250 150 25,0% 10,0% 200 20,0% 100 5,0% 150 15,0% 50 0,0% 100 10,0% -5,0% 0 50 5,0% -10,0% 0 0,0% -50 -15,0% 2018 1Q 2018 2Q 2018 3Q 2018 4Q 2019 1Q 2019 2Q 2019 3Q 2020 4Q 2018 1Q 2018 2Q 2018 3Q 2018 4Q 2019 1Q 2019 2Q 2019 3Q 2020 4Q

Gross Profit Gross Profit Margin Operating Profit Operating Profit Margin

EBITDA Million TL Million TL Net Profit 250 30,0% 300 40,0% 25,0% 250 200 30,0% 20,0% 200 15,0% 20,0% 150 10,0% 150 10,0% 100 5,0% 100 0,0% 0,0% 50 50 -5,0% -10,0% 0 -10,0% 0 -20,0% -15,0% -50 -50 -20,0% -100 -30,0% 2018 1Q 2018 2Q 2018 3Q 2018 4Q 2019 1Q 2019 2Q 2019 3Q 2019 4Q 2018 1Q 2018 2Q 2018 3Q 2018 4Q 2019 1Q 2019 2Q 2019 3Q 2020 4Q

EBITDA EBITDA Margin Net Profit Net Profit Margin

30 33 FINANCIAL INDICATORS

Ratios 2014 2015 2016 2017 2018 2019

ROE 29,8% 32,4% 28,7% 35,1% 42,2% %55,1 EBITDA Margin 12,8% 10,8% 10,4% 10,4% 13,5% %17,8 Net Margin 5,9% 5,5% 4,3% 5,6% 9,8% %14,5 Net Debt/Equity 1,2 2,3 1,6 1,7 1,4 0,9 Net Debt/EBITDA 1,9 3,6 2,3 2,5 2,4 1,3 ST. Borrowing/T.Borrowings 0,52 0,49 0,60 0,53 0,38 0,39 Equity/Total Assets 0,20 0,15 0,14 0,14 0,17 0,24 Current Ratio 1,5 1,3 1,4 1,5 2,1 1,9

31 34 FINANCIAL INDICATORS

Thousand TL Capital Expenditures 50.000

45.000 39.778 40.000

35.000

30.000 28.002 25.838 25.000 21.510 20.000 16.363 15.838 16.016 15.100 15.000 12.421 10.264 10.000 8.785

5.000

0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

32 35 FINANCIAL INDICATORS

Net Debt/EBITDA Million TL 700 4,00

3,59 580 3,50 600 556 534 3,00 500 473 2,55 432 2,50 391 400 2,36 2,30 1,93 2,00 303 300 227 1,50 1,34 200 170 186 157 155 1,00

100 0,50

0 0,00 2014 2015 2016 2017 2018 2019 Net Debt EBITDA Net Debt/EBITDA(rhs)

33 36 FINANCIAL INDICATORS

BORROWINGS Million TL 600

548 500 514 509 500 400 425

300

274 200 254 207 190 100 106 76 5 0 2014 2015 2016 2017 2018 2019 S.T. Borrowings L.T. Borrowings

. Exchange rate risk and liquidity are monitored actively and the maturity of the borrowings and the currency type is determined by taking into consideration ofthe foreign currency position and liquidity risk. . In the last 5 year period, borrowings are mainly realized in long term, in terms of foreign currency and TL.

34 38 FINANCIAL INDICATORS

Dividend Yield

Thousand TL 100.000 100.000 9% 8% 8% 80.000 7% 8% 80.000 72.000 7% 72.000 70.000 64.000 6% 60.000 5% 60.000 5% 4% 48.000 4% 3% 4% 40.000 3% 3% 3% 2% 2% 20.400 20.000 15.000 2% 7.200 1% 0 0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Dividend Dividend Yield

. Consistent dividend distribution is an indication of the importance given to creating shareholder value.

35 40 STOCK PERFORMANCE

Stock Performance

Market Capitalization

36 41 R&D AND TEST CAPABILITIES

37 43 ARGE VE TEST KABİLİYETLERİ

According to ‘‘R & D 250, Otokar was awarded with "Intelligent Otokar added electric bus e- companies that engaged in R & D Spare Part Optimization" project in Kent C and Turkey's first expenditures in Turkey'' survey the "Analytical and Big Data" category electric-powered armored prepared by Turkishtime magazine in the Artificial Intelligence, Analytical combat vehicle Akrep IIe to it’s in 2018, Otokar ranked 7th among and RPA Technologies competition, prdoduct range, which both the companies that conduct R&D and with it’s “OTOperasyon” project in were developed by it’s own research. the "Mobility in Production" category R&D. in the Smart Manufacturing competition organized by IDC.

Total R & D spending over the 10 year R & D expenditures in Total of 422 R&D center employee last 10 years 1.1 billion TL turnover 8%

38 44 ALTERNATIVE FUELED BUSES

DORUK HIBRA DORUK DG KENT DG DORUK ELECTRA Turkey’s first hybrid bus Turkey’s first natural gas 12 m CNG bus Turkey’s first electric bus powered mid-sized bus

AKREP IIe E-Kent C Turkey’s first electric armoured vehicle 12 m electric bus

39 11 SUSTAINABILITY

Otokar listed in the BIST Sustainability Index for the fifth consecutive term

Otokar considers its sustainability strategy, protecting domestic capital structure and the goal of profitability, its sensitivity to the environment, human and society, its focus on universal human rights and business ethics principles, operational excellence and customer satisfaction, and the development of high-tech, value-added products.

Otokar is strictly bound to the 10 principles of the UN Global Compact signed by Koç Holding.

Otokar is also signatory of the Women's Empowerment Principles (WEPs), a joint initiative of the United Nations Women's Unit (UN Women) and the United Nations Global Compact (UN Global Compact).

Otokar accepts 17 Global Goals for Sustainable Development as defined by the United Nations General Assembly and carries out its activities accordingly.

40 45 CORPORATE GOVERNANCE

56th Ordinary General Assembly of Otokar Otomotiv ve Savunma Sanayi A.Ş. held on 18.03.2019

Rating of Adaptation to Corporate Governance Principles Weight Rating Otokar, as publicly disclosed with the Shareholders 25% 95.41 material disclosure dated 21.03.2018, stated Public Disclosure & Transparency 25% 93.94 that SAHA Corporate Governance and Stakeholders 15% 97.13 Rating Services A.Ş. (SAHA) increased its Board of Directors 35% 91.76 Corporate Governance Rating to 94.02 Total 100% 94.02 (9.40 out of 10)

41 45 CONTACT

Please visit www.otokar.com.tr  Doğan Seçkinler Finance, Risk Management & IR Director +90 264 229 22 44 – 6300 [email protected]

 H. Gülşah Mutlu IR &Corporate Governance Manager +90 264 229 22 44 – 6320 [email protected]

 Emre Altuğ IR & Corporate Governance Responsible +90 264 229 22 44 – 6322 [email protected]

Disclaimer: This presentation contains forward-looking statements that reflect the Company management’s current views with respect to certain future events. Although it is believed that the expectations reflected in these statements are reasonable, they may be affected by a variety of variables and changes in underlying assumptions that could cause actual results to differ materially.

Neither OTOKAR nor any of its directors, managers or employees nor any other person shall have any liability whatsoever for any loss arising from use of this presentation.