Proven Technology
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PROVEN TECHNOLOGY 2019 Annual Report Please scan the QR code to view the ASELSAN shares are traded in Borsa Istanbul under ticker symbol ASELS. PDF version of this annual report. CONTENTS ASELSAN AT A GLANCE 2 Vision-Mission 3 Ethical and Core Values 5 ASELSAN Shareholding Structure and Financial Position 6 Local Affiliates 8 Global Affiliates 10 Our Facilities A GLANCE ASELSAN AT 11 Organizational Structure 12 Main Financial Indicators 14 ASELSAN Human Resources 14 R&D Activities 15 Collaboration with Universities 15 Collaboration with Domestic Suppliers MANAGEMENT MANAGEMENT 16 Message from President,Chairman and CEO 18 Members of the Board of Directors 20 Corporate Governance 22 Members of the Executive Board IN 2019 24 Highlights of 2019 IN 2019 32 Learning and Organizational Development 34 Human Resources Management at ASELSAN 38 Technology and Strategy Management 44 ASELSAN Research Center 50 The ASELSAN Academy 52 Business Development and Marketing Activities FILEDS OF ACTIVITY 54 Communications and Information Technologies Business Sector 70 Defence System Technologies Business Sector FILEDS OF ACTIVITY 86 Microelectronics, Guidance and Electro-Optics Vice Presidency 102 Radar and Electronic Warfare Systems Business Sector 118 Transportation, Security, Energy, Automation and Healthcare Systems Business Sector FINANCIAL INFORMATION 136 Consolidated Statement of Financial Position 139 Consolidated Statement of Profit or Loss and Other Comprehensive Income 140 Consolidated Other Comprehensive Income Statement FINANCIAL INFORMATION 141 Consolidated Statement of Changes in Equity 142 Consolidated Statement of Cash Flow ASELSAN 2019 Annual Report 1 VISION To be a reliable, competitively preferred, environment-friendly and human conscious technology firm which preserves its sustainable growth in the global market via the values created for stakeholders, as well as serving its establishment purposes. MISSION By focusing primarily on the needs of the Turkish Armed Forces; to provide high-value-added, innovative and reliable products and solutions to both local and foreign customers in the fields of electronic technologies and system integration; continuing activities in line with global targets as well as increasing brand awareness and contributing to technological independence of Turkey. 2 ASELSAN 2019 Annual Report ETHICAL AND CORE VALUES • Togetherness • Excellence • Innovation • Evolution • Trust A GLANCE ASELSAN AT ASELSAN 2019 Annual Report 3 ASELSAN SHAREHOLDING STRUCTURE OUR SHAREHOLDERS (%) TURKISH ARMED FORCES FOUNDATION (TAFF) 74.20 25.80% of ASELSAN shares are listed on Borsa Istanbul. BIST 25.80 OUR SHAREHOLDERS SHARE AMOUNT (TL) SHARE (%) TAFF 845,825,624.46 74.20 Quoted on the BIST 294,174,375.54 25.80 Total 1,140,000,0000 100.00 4 ASELSAN 2019 Annual Report ASELSAN’S FINANCIAL POSITION SALES (%) TURKISH ARMED FORCES 62 A GLANCE ASELSAN AT TOTAL SALES 13,013 MILLION TL EXPORT 12 PUBLIC AND PRIVATE INSTITUTIONS 26 ASELSAN REALIZED 62% OF ITS TOTAL SALES A TOTAL OF USD 3 BILLION 43 MILLION OF OF TL 13 BILLION 13 MILLION TO THE TURKISH NEW CONTRACTS/ORDERS WERE SIGNED IN ARMED FORCES, 26% OF ITS SALES TO PRIVATE 2019, WHERE THE BACKLOG OF ASELSAN IS ORGANIZATIONS OR OTHER CORPORATE USD 9.7 BILLION. CUSTOMERS, AND WITH 12% OF ITS EXPORTS. ASELSAN 2019 Annual Report 5 LOCAL AFFILIATES MICROELECTRONICS R&D DESIGN AND TÜYAR MICROELECTRONICS INDUSTRY TRADING LTD. CO AND TRADE INC. İstanbul Gebze The company was established to The company was established in design and develop integrated circuits Kocaeli, Gebze in 2017 in order to and electronic systems in Istanbul, perform activities related to micro ASELSAN became a partner in and nano dimensional devices that MICROELECTRONICS in 2010 with an contain semiconductors and similar 85% stake. technological materials. ASELSAN holds a 51% stake in the company. ASELSAN KONYA WEAPON SYSTEMS INC. Konya “ASELSAN Konya Weapon Systems Inc.” was established in order to carry out research, design, development and engineering activities for defence industry products, especially for weapons and weapon systems, to make production, testing, assembly and integration, sales and marketing, importing and exporting of these products. The company also aims to provide training, maintenance and after sales services, and carry out all kinds of commercial and industrial activities related to these issues. 51% of the new company belongs to ASELSAN, while 49% belongs to Konya Weapon Systems Inc. The company is established on November 12, 2018. ASELSANNET ELECTRONIC AND TEKNOHAB INC. ASELSAN BİLKENT MICRO NANO COMMUNICATION SYSTEMS INDUSTRY, TRADE, Ankara TECHNOLOGIES INDUSTRY AND TRADE INC. CONSTRUCTION AND CONTRACTING LTD. CO. Teknohab Inc. was established in Ankara Ankara Ankara in 2018 in order to create investment The company was established in Bilkent, The company was established in Ankara opportunities in technology intensive areas, Ankara in 2014 to carry out research and in 2004 to meet the electronic and to provide job opportunities to researchers development activities for the applications communication device requirements of and skilled people, to help technology of all types of semiconductors and civilian institutions and organizations. transfers and to facilitate foreign capital similar technological materials, and to Since 2009, it has also added turn-key and to enter our country that will enable high manufacture and sell micro and nano installation work for communication system technology. 30% of the new company dimensional devices that contain these infrastructure among its activities. ASELSAN belongs to ASELSAN A.Ş.. materials. ASELSAN owns 50% of the is the company’s 100% shareholder. company’s capital. ULAK INC. ROKETSAN ROCKET INDUSTRY AND TRADE INC. Ankara BITES INC. Ankara The company was establised in Ankara Ankara Roketsan was established in Ankara in 1988 in 2017 in order to carry out R&D and The company was established to operate to manufacture all kinds of missiles, rockets, engineering activities of mobile and mainly in the fields of augmented reality, rocket launchers and rocket fuel and their broadband communication systems used artificial intelligence, simulation software, engines, warheads and other components, by commercial network operators, to research, development, design and and also to manufacture, market and sell all manufacture, test, install and integrate engineering in Ankara. ASELSAN owns kinds of military and civilian products and such systems and spare parts, to sell and 51% of the company’s capital since 2019. their parts where a high level and sensitive to market, to import and export, to provide technology is required. ASELSAN holds a training, maintenance and support services. 14.897% stake in the company. ASELSAN owns 51% of the company’s capital since 2018. 6 ASELSAN 2019 Annual Report ASELSAN PRECISION EHSIM INC. ASELSAN GLOBAL INC. OPTICS INDUSTRY AND Ankara Ankara TRADE INC. The company was established to operate The company titled “ASELSAN Global Sivas mainly in the fields of Electronic Warfare Dış Ticaret ve Pazarlama A.Ş.” was The company was and Tactical Command Control Systems established in order to carry out import, established in Sivas in Ankara. ASELSAN owns 50% of the export and marketing activities of all in 2014 in order to company’s capital since 2019. kinds of civil and military electronic carry out research and products and systems. 100% of the ASELSAN AT A GLANCE ASELSAN AT development studies company belongs to ASELSAN A.Ş. for optical, optical set TR EDUCATION AND TECHNOLOGY INC. and optical devices for Ankara all types of ultraviolet, The company operates in realizing human visible and near resource studies, giving consulting, infrared bands, and to coaching and accreditation services and manufacture and sell operating in education, teaching, culture, such optical elements. art, sport, exhibition organizations and ASELSAN holds a 50% digital marketing activities at all levels. stake in the company. ASELSAN owns 50% of the company’s capital since 2019. ASPİLSAN ENERGY INDUSTRY AND TRADE INC. Kayseri 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, turnkey batteries 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 LTD. CO. 15,000,000 Turkish Lira 100.00 ASELSAN GLOBAL INC. 50,000 Turkish Lira 100.00 MICROELECTRONICS LTD. CO 1,700,000 Turkish Lira 85.00 TÜYAR MICROELECTRONICS INC. 8,905,875 Turkish Lira 51.00 ASELSAN KONYA WEAPON SYSTEMS INC. 44,472,000 Turkish Lira 51.00 ULAK INC. 11,730,000 Turkish Lira 51.00 BİTES INC. 127,500 Turkish Lira 51.00 ASELSAN Precision Optics Inc. 6,500,000 Turkish Lira 50.00 EHSİM INC. 125,000 Turkish Lira 50.00 TR EDUCATION AND TECHNOLOGY INC. 1,000,000 Turkish Lira 50.00 ASELSAN BILKENT MICRO NANO INC. 9,000,000 Turkish Lira 50.00 TEKNOHAB INC. 3,000,000 Turkish Lira 30.00 ROKETSAN INC. 21,906,223 Turkish Lira 14.897 ASPİLSAN ENERGY INC. 812,400 Turkish Lira 1.00 ASELSAN 2019 Annual Report 7 GLOBAL AFFILIATES ASELSAN MIDDLE EAST PRIVATE ASELSAN BAKU COMPANY SHAREHOLDING COMPANY LIMITED Baku-Azerbaijan (AME) Established in 1998 to carry out Amman-Jordan the promotion/marketing and The company was established