INVESTOR RELATIONS PRESENTATION 30.06.2013 AGENDA

 Company Profile  Highlights of 2013  Financials  Market Evaluation  Annex  Otokar in 2015

2 ADAPAZARI ARİFİYE PLANT

Total area 552.000 m² Total closed area 141.303 m²

3 Otokar’s Profile Briefly Otokar

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

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

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

4 Otokar’s Profile Briefly Otokar

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

‘08 ‘09 ’10 ‘11 ‘12

Otokar The first Otokar’s M2010 was Otokar added Otokar Otokar The first entered in to Hybrid and first 12- launched to the armoured received R&D SAS Electric-bus the CNG bus meter public the market vehicle ARMA Centre was of Turkey: Corporate models of transportati and Vectio 6x6 to its Document in established DORUK Management Doruk and on bus KENT 215T was product range Feb. 2011. in France in ELECTRA League in also the was awarded with in the 4th August 2011. was ISE with launch of launched in Grand Award quarter of produced by 7,94 rating Vectios with June 2009. in Busworld 2010. Otokar. on 20 March Euro 5 Engine Fair in 2008 was in 2008. October.

5 Otokar’s Profile Briefly Otokar

 Otokar is among the leading companies of Turkey on both commercial and defence industry sides with its 50 years’ experience.  Otokar is quoted in ISE since 1995 and 30% share of Otokar is traded on ISE.  Otokar’s capex volume is around 10-15 mio $ per annum. Otokar’s R&D activities is realized by 143 engineers in its 1000m² R&D department.  Otokar has integrated logistic support for its customers: -In Turkey, at 7 regions, 115 authorized service stations. - At 19 countries Otokar vehicles are fully supported. - Otokar also provides spare part, driver training, maintenance training, technical literature and all kinds of aftersales support.  Since 1990 Otokar regularly attends in both defence industry & commercial fairs all over the world. It attended in 6 fairs in 2013.  In last 25 years, Otokar realized over 1,5 billion $ defense industry deliveries including exports and 850 million $ of this derived from exports in last 9 years.

6 Otokar’s Profile Shareholders

UNVER KOÇ HOLDING HOLDING 25% 45%

FREE FLOAT 30%

7 Otokar’s Profile Product Range

COMMERCIAL VEHICLES DEFENCE VEHICLES . Minibus . Land Rover 4x4 Land Vehicles

. Armored Internal Security Vehicles . Mid Cap Sized Bus . Mine Resistant Armored Tact.Veh: KAYA

. . Mine Resistant Arm. Troop Carrier: KALE

. 6x6 and 8x8 Arm. Tact. Veh:ARMA . Trailer, Semi-trailer & Tankers . 4x4 Arm. Tact. Veh: APC, APV, Cobra

. Light Truck

. Tracked Arm. Troop Carrier: TULPAR

8 Otokar’s Profile Product Range

COMMERCIAL VEHICLES

. Minibuses

. Midibuses

. Buses

. Trailer/Semi-trailers, Tankers

. Light Truck

9 Otokar’s Profile Product Range

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

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

ON COMMERCIAL SIDE OTOKAR HAS A WIDE PRODUCT RANGE CONSISTING OF MINIBUSES, MIDIBUSES, BUSES FROM 5,5 METERS TO 13 METERS, LIGHT COMMERCIAL TRUCKS AND ALSO TRAILERS, SEMI-TRAILERS AND TANKERS.

10 Otokar’s Profile Product Range

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

11 Otokar’s Profile Product Range DEFENCE PRODUCT RANGE

. Land Rover Defender

. Armoured Vehicles  Armoured Personnel Carrier and Ural  Akrep  Cobra and Cobra II  Discreetly Armoured Station Wagon  Armoured Internal Security Vehicle  Mine Resistant Arm.Tact. Troop Carrier: Kaya and Kale  Armored Tact.Veh: Arma 6X6 and 8X8  Tracked Arm. Troop Carrier: TULPAR . Tank in Near Future : Altay

12 Otokar’s Profile Product Range

OTOKAR, LEADER COMPANY IN DESIGN, TEST, INTEGRATION AND PRODUCTION OF MILITARY TACTICAL VEHICLES, AFTER THE 25 YEARS DEFENSE INDUSTRY EXPERIENCE, SCORED ALMOST 1,5 BILLION USD DELIVERY INCLUDING EXPORTS.

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

13 Otokar’s Profile Recently Launched Products

.ATLAS Light Commercial Truck .TEMPO Short Haul Bus .URAL The New Armored Personnel Vehicle .COBRA II .KAYA II The New Mine Resistant Armored Tactical Vehicle

.TULPAR The First Tracked Troop Carrier Vehicle of Otokar

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

.A feasibility study was performed so that a Main Turkish Battle Tank can be designed and produced locally with a genuine model to meet the needs. .A tender was opened for the preparation of the design and the prototype of the Main Turkish Battle Tank. .The result of this tender was announced on March 30,2007 and Otokar was honoured for the negotiations. .The agreement was signed on July 29,2008 at the manufacturing plant of Otokar in attendance of the Prime Minister Recep Tayyip Erdoğan. .The budget for design, prototype production, tests and qualification of the ALTAY Tank is declared to amount to USD 494 million. The period for this phase is 78,5 months. .The conceptual design stage was finished in 2010 and detailed design stage started. .The 1st mock-up of Altay was exhibited in IDEF-11 (May 2011). .The 1st tank test center of Turkey was established within Otokar. .The first two prototype of Altay was presented. (Nov 2012)

15 Otokar’s Profile Research & Development R&D activities have been attached great importance in Otokar since its foundation. In addition to extending the present product range, Otokar also applies a permanent R&D process in terms of designing military, semi-military and commercial original products in parallel with the demands of the domestic and foreign markets. Otokar's small bus, Sultan, which has changed the small bus standards in Turkey, and Otokar's armored vehicles such as ZPT, Cobra, Kaya, Arma have been completely designed and developed by R&D Department. Otokar R&D Center, has an enclosed area of 1000 m². On the other hand, it is equipped with prototype manufacture areas, special paint house, and Hydraulic Road Simulator enabling faster testing of the manufactured vehicles employing the state-of-the-art technology, test equipment and computer systems to create and evaluate information. Having proved itself in the realm of R&D, Otokar was awarded with "Award of New Articles" by the Undersecretariat of Foreign Trade in 1996 and with "Mimar Sinan University Industrial Design Honorary Prize" in 1999. Otokar's next goal is to design vehicles employing virtual reality simulations in computer environment, thus developing better quality products in a shorter period. Otokar received R&D Centre Document in Feb. 2011. Otokar designed vehicles constitutes 85% of the total revenue.

16 Otokar’s Profile Awards

 2013 : The Cleanest Industry Plant of Turkey Award, Ministry of Environment & Urban Planning  2011 : Jury’s Special Award for KENT bus, Busworld Fair  2010 : “Good Design Award”, Design Turkey 2010 for KENT 290LF  2009: Busworld Kortrijk European Coach and Bus Week (ECW) Grand Award in Midi Coach category for DORUK 215T  2008: “Good Design Award”, Design Turkey 2008 for DORUK 190LE  1999: Industrial Design “Honour Award” by Mimar Sinan University  1996: "Award of New Articles" by the Undersecretariat of Foreign Trade

17 Otokar’s Profile Dealership System

38 Bus/Midibus/Minibus Dealers (22 of which are abroad) 9 Trailer Dealers 211 Authorized Service Stations (97 of which are abroad)

18 Otokar’s Profile Export Markets

19 Otokar’s Profile Competitive Advantages

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

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

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

. Low engineering costs . Lower unit cost

. Test and Design Center . Shorter test time for vehicles

20 Otokar’s Profile Vision and Mission

 Developing its own technology

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

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

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

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

21 HIGHLIGHTS OF 2013

 The total revenues of Otokar in 1H 2013 were USD 386,8 mio. Otokar generated USD29,9 mio net profit with a net margin of 8%.  Otokar’s 8,68 Corporate Management rating upgraded to 9,10 in March 2013.  Successful results in bus&midibus sales: In 1H 2013 bus&midibus total sales increased by 149% compared to 1H 2012. Continuation in the leadership in 7 to 9-meter local bus market. In 7-meter segment Sultan (Navigo) is the market leader with 61,6% share which was 56,2% in 1H 2012. In 9&10mt bus segment Doruk (Vectio) is the market leader with its 86,9% share which was 55,1% in 1H 2012. In addition to these, Otokar was also the market leader in 12- meter public transport buses with 34,5% share with its KENT.  New orders from several buyers: As of June 2013, the backlog figure to be delivered in near future reached to USD 96 million consisting of 6x6 ARMA, 4x4 Cobra, Internal Security Vehicle, APV, Land Rover for several buyers and KENT for Istanbul Municipality.

 Atlas, Tempo, Ural, Cobra II, Kaya II and Tulpar was entered into the product range.

22 HIGHLIGHTS OF 2013

Sustainable Leadership in midcap sized Bus Market

Midibus-Bus - Niche Market

units Market Size 5 250 Market Share 64% 70% 60% 4 500 56% 60% 4 516 3 750 46% 47% 50% 40% 3 000 3 357 40% 32% 3 169 2 250 30% 2 208 2 372 1 500 20% 1 569 1 786 750 10%

0 0% 2008 2009 2010 2011 2012 2012 1H 2013 1H

23 Otokar’s Financials Financial Indicators

2012 2011 2013 1H 2012 1H ta Revenue

EBITDA

Profit

Shareholders’ Equity

ROE

Gross gin

Operating gin

EBITDA gin

gin

urrent Ratio

tal # of Employees (USD mio)

24 Otokar’s Financials Production Units

units 6 000

5 000 5 676 units

4 000 3 000 4 040 2 500 3 000 4 012 3 390 2 000 2 799 2 038 2 000 2 955 1 500 1 000 1 000 500 0 0 2008 2009 2010 2011 2012 1H'12 1H'13

25 Otokar’s Financials Sales Units-Distribution

units

4 500

4 000 2 616 994 1 190 3 500

1 159 3 000 37 422 units 2 800 461 2 500 1 863 1 990 2 450 1 251 2 100 2 000 2 514 825 1 438 1 750 2 100 1 500 1 400 276 1 103 498 152 1 050 1 000 270 283 23 453 179 670 56 700 25 649 350 122 171 500 416 347 9 17 209 205 31 0 0 1H'12 1H'13 2008 2009 2010 2011 2012 LIGHT TRUCK TRAILER MIDIBUS&BUS TRAILER MIDIBUS&BUS MINIBUS ARM. T.V. L-ROVER MINIBUS ARM. T.V. L-ROVER

26 Otokar’s Financials Sales Unit-Comparison

units EXPORT DOMESTIC

6 000 603

5 000 units EXPORT DOMESTIC 512 4 000 621 3 000 225 1.150 2 500 3 000

502 184

2 000

5 0305

2 000 1 500

3 6263

2 5842 3 3963

3 1023 1 000 1 9001

1 000 3662 500

0 0 2008 2009 2010 2011 2012 1H'12 1H'13

27 Otokar’s Financials Revenue-Distribution

DISTRIBUTION OF REVENUES 1H 2012 DISTRIBUTION OF REVENUES 1H 2013

EXPORT 18% EXPORT 25%

DOMESTIC 74% DOMESTIC 82%

DISTRIBUTION OF REVENUES 2011 DISTRIBUTION OF REVENUES 2012

EXPORT 19% EXPORT 26%

DOMESTIC DOMESTIC 81% 74%

28 Otokar’s Financials Revenue-Distribution

USD thousand EXPORT DOMESTIC USD 600 000 EXPORT DOMESTIC thousand 500 000 96 439 145 701

400 000 400 000 53 644

115 033 45 877 100 447 300 000 300 000

62 025 333 115

200 000 200 000 423 567 423 415 491 415 180 226 100 000

100 000 487 299

256 000 256 224 851 224 0 0 1H'12 1H'13 2008 2009 2010 2011 2012

29 Otokar’s Financials Revenue-Composition

100% 11% 9% 13% 100% 12% 9% 17% 15% 5% 8% 14% 6% 13% 21% 80% 80% 24% 39% 33% 0% 29% 19% 31% 60% 29% 60% 3% 7% 0% 0% 11% 2% 40% 40% 40% 61% 41% 45% 33% 38% 42% 20% 20% 1% 7% 4% 5% 2% 1% 0% 0% 0% 2008 2009 2010 2011 2012 1H'12 1H'13

TANK TRAILER ARM. T.V. LR AUTO&MIDIBUS MINIBUS TANK LIGHT TRUCK TRAILER ARM. T.V. LR AUTO&MIDIBUS MINIBUS

30 Otokar’s Financials Margins

40% 30% 35% 26.1% 30% 24.3% 25% 22.0% 22.1% 17.6% 15% 20% 12.6% 13.5% 12.2% 10.2% 15% 11.5% 11.7% 9.3% 7.7% 8.0% 10% 7.3% 6.7% 7.6% 5.0% 6.2% 4.0% 5% 0% 2008 2009 2010 2011 2012 0% 2008 2009 2010 2011 2012 Gross Margin EBITDA Margin Operating Margin Net Margin Gross Margin EBITDA Margin Operating Margin Net Margin

30% 40% 35%

30% 23.5% 22.3% 25% 15% 20% 15.4% 13.6% 12.4% 11.1% 15% 8.9% 7.7% 10% 5% 0% 1H'12 1H'13 0% 1H'12 1H'13

Gross Margin EBITDA Margin Operating Margin Net Margin Gross Margin EBITDA Margin Operating Margin Net Margin

31 Otokar’s Financials Ebitda & Ebitda Margins

USD USD EBITDA thousand EBITDA EBITDA Margin thousand EBITDA Margin 80 000 16% 60 000 18% 12.2% 15.4% 70 000 13.5% 14% 16% 50 000 13.6% 14% 60 000 12.6% 12% 10.2% 68 192 40 000 12% 50 000 7.7% 10% 24.500 10% 40 000 46 453 8% 30 000 52 523 43 995 8% 30 000 6% 20 000 37 325 6% 26 702 20 000 4% 4% 10 000 10 000 2% 2%

0 0% 0 0% 2008 2009 2010 2011 2012 1H'12 1H'13

32 Otokar’s Financials Net Profit & Net Margin

USD Net Profit thousand Net Margin USD Net Profit Net Margin 35 000 8.9% 10% thousand 7.7% 9% 7.6% 30 000 35 000 7.3% 8% 8% 6.7% 25 000 30 000 6.2% 7% 7% 6% 6% 20 000 25 000 29 936 5% 5% 15 000 20 000 4.0% 4% 4% 21 552 3% 30 642 10 000 15 000 26 880 21 887 2% 32 816 3% 5 000 10 000 1% 2% 13 870 0 0% 5 000 1% 1H'12 1H'13

0 0% 2008 2009 2010 2011 2012

33 Otokar’s Financials Dividend Performance

USD thousand

40 000 10% 8% 35 000 9% 7% 8% 30 000 7% 25 000 5% 35 903 6% 20 000 25 412 5% 4% 3% 15 000 4% 3% 10 000 13 549 2% 9 702 5 000 1% 4 761 0 0% 2008 2009 2010 2011 2012

Dividends Dividend Yield

34 Otokar’s Financials Stock Performance

As of June 28 2013

100 100 000 OTKAR BIST-100

75 75 000

50 50 000 OTKAR (TL) OTKAR

25 25 000

0 0

Jul-10

Oct-11

Jan-08 Jan-13

Apr-09

Jun-08 Jun-13

Feb-10

Sep-09

Dec-10

Mar-12

Nov-08

Aug-12 May-11

35 Otokar’s Financials MCAP

USD MCAP USD 837 mio million

1250

1000

750

500

250

0

Jul-10

Oct-11

Jan-08 Jan-13

Apr-09

Jun-08 Jun-13

Feb-10

Sep-09

Dec-10

Mar-12

Nov-08

Aug-12 May-11

36 Otokar’s Financials MCAP

USD million MCAP USD 837 mio (28 June 2013)

1250

1000

750

500

250

0

Jul-10

Oct-11

Jan-08 Jan-13

Apr-09

Jun-08 Jun-13

Feb-10

Sep-09

Dec-10

Mar-12

Nov-08

Aug-12 May-11

OTOKAR ASUZU

37 Otokar’s Financials Capital Expenditure

USD thousand

65 000 61 917 USD thousand 52 000 12 000 11 371 39 000 8 000 26 000

15 179 15 734 4 000 13 000 10 867 2 570 8 138

0 0 2008 2009 2010 2011 2012 2012 1H 2013 1H

38 ANNEX

 Summary Profit & Loss Statement (IFRS)

 Summary Balance Sheet (IFRS)

 Summary Cash Flow Statement (IFRS)

 Summary Working Capital

39 ANNEX SUMMARY-Profit&Loss Statement

40 ANNEX SUMMARY-Balance Sheet

41 ANNEX SUMMARY-Cash Flow Statement

42 ANNEX SUMMARY-Total Working Capital

43 Otokar in 2015

  

  

44 CONTACTS

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

 Doğan Seçkinler Finance Manager (90 264) 229 22 44 – 6300 [email protected]

 Ö.Ahmet Özerol Finance Section Investor Relations Assistant (90 264) 229 22 44 – 6313 [email protected]

45