(14.02.2014)
Prepared based on 2013 year-end financial results Agenda
ABOUT US FINANCIAL INDICATORS • INTRODUCTION LONG-TERM OBJECTIVES • VISION & MISSION • FINANCIAL STATEMENTS & RATIOS • SUSTAINABLE GROWTH • BRIEF HISTORY
• PRODUCTION-SALES- • GROWTH WITH PRODUCTS WHICH • SHAREHOLDER STRUCTURE REVENUE-BACKLOG LICENSE RIGHTS BELONG TO OTOKAR
• PRODCUTION PLANT • CAPITAL EXPENDITURE • GROWTH IN EXPORT MARKETS
• EMPLOYEE PROFILE • STOCK and DIVIDEND • SHAREHOLDER VALUE CREATION PERFORMANCE
• PRODUCT RANGE
• MARKET CAPITALISATION
• ALTAY PROJECT
• R&D and TEST CENTRE
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 and in more than 60 countries
Turkish Armed Forces’ leading supplier and exporter of land platforms
Turkey’s market leader in passenger bus segment with a capacity of 25 people and over for the last 4 years
ABOUT US Vision&Mission
Vision • Otokar preserves the local and national characteristics of its products by developing its technology in-house, and aims at the continued satisfaction of its customers, employees, and shareholders by embracing a total excellence philosophy. Mission • The key mission of Otokar is to design, manufacture and market commercial vehicles and various defence industry products developed in line with customer expectations that have global competitive power.
ABOUT US Brief History
1963 1970s 1980s 1990s 2000s 2010s
.Establishment .Turkey’s first .Production of .Military .Merge with the .Production of City .Production of interciy bus 4x4 tactical armoured İstanbul Fruehauf Buses buses under the .The first Turkish vehicle under vehicles by own A.S. .Multi-wheeled license of Armoured the license of desing .Production of armoured tactical Magirus-Deutz Vehicle Land Rover .Turkey’s first small and mid vehicle family production export of tactical buses .Turkey’s first .Partnering with armoured vehicle .Turkey’s first electric bus Koç Group .Sakarya hybrid bus .Atlas Light Truck plant/factory .The prime .Tracked Armoured contractor of Vehicle ALTAY Project
ABOUT US Partnership Structure
Ünver %45 Holding %25
LISTED %30
No foreign partner, independent and has the technology.
ABOUT US Production Plant
552,000 m2 plant, employee about 2500 Capacity of Certificates 4200 Land Vehicle ISO 9001 Quality Standard 900 Tactical Armoured Vehicle ISO 14001 Environment Standard 4600 Autobus + Minibus AQAP 2110 Military Quality Assurance Certificate 1400 Trailer ve Semi-trailer Facility Security Certificate with National and NATO Secrecy Degree
ABOUT US Employee Profile
2265 Employee
White- Blue- collar Collar 640 1625
640 White-Collar Personnel 564 ARGE Centre Personnel
Engineer: 227 Tank: Other: 242 322 Other: 413
ABOUT US Number of Employee
2500
2000
1500
1000
500
0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
ABOUT US Product Range
Commercial Vehicles Defense Industry
Public Transport Logistic Vehicles Light Truck
Models Models Models Models LAND ROVER DEFENDER / ARMOURED KENT / DORUK / FRUEHAUF / OTOKAR OTOKAR ATLAS PERSONAL CARRIER / URAL / COBRA / SULTAN / M-2010 / COBRA II / KAYA / KAYA II / KALE / CENTRO / NAVIGO / ARMA 6x6 / ARMA 8x8 / INTERNAL VECTIO / TERRITO SECURITY VEHICLE / TULPAR / ALTAY
ABOUT US Public Transport Vehicles
Otokar, Turkey’s the most preferred bus brand for the fourth time! About 30 thousand buses, carrying millions of passengers in nearly 40 countries!
ABOUT US Otokar Buses
M-2010 A wide product range from intercity SULTAN / NAVIGO transport to personnel and tourism transport DORUK / VECTIO Special Products
TERRITO Researches for Alternative fuels KENT
ABOUT US M-2010 / CENTRO
Suitable minibuses for disabled people in transportation
ABOUT US TEMPO
The small bus with low operating and investment costs designed for service and personnel transport
ABOUT US SULTAN / NAVIGO
• Turkey’s best-selling small bus • Different models for intercity transport, service and tourism transport
ABOUT US DORUK / VECTIO
• Turkey’s market leader in medium-sized buses • “Grand Award” prize in Europe • Different models for intercity transport, service and tourism transport
ABOUT US KENT
• Turkey’s most preferred 12 m. intercity bus • 2 Design Award in Europe and Turkey
ABOUT US TERRITO
The 12-meter bus developed for the European market
ABOUT US Alternative Fueled Buses
2007 2009 2011 2012
DORUK Hibra DORUK DG KENT DG DORUK ELECTRA Turkey’s first Turkey’s first natural 12 m CNG bus Turkey’s first electric hybrid bus gas powered mid-sized bus bus
ABOUT US Logistic Vehicles
About 25 thousands of semi-trailer that provides transportation service in the roads of the world! ABOUT US Trailer
Curtainsider Trailers Van Type Trailer Tanker Trailer İnternal Logistic Tools
-TIRLINER -ICELINER -ADR CERTIFICATED -CONTAINER CARRIER -EUROSLIDER -TEXTILE CARRIER TANKER -PLATFORM TRAILER -SPEEDSLIDER -TRAILER AND -ROLL CARRIER -MEGALINER TRUCK-TOP APPLICATIONS -TIPPER CHASIS -ECOTIR -ECOLINER
ABOUT US Curtainsider Trailer
Customer-oriented solutions in the transportation of dry load
ABOUT US Van Type Trailer
For 12 years, most commonly preferred refrigerated trailer in Turkey for transport of perishable goods in hygienic and safe condition
ABOUT US Tanker
• Turkey’s first ADR certificated trailer • Wide product range and proficiency
ABOUT US Light Truck
ABOUT US ATLAS
A light truck, with high payload capacity and low operating cost
ABOUT US Defence Industry
More than 28.000 military vehicle serving in 4 continents and in nearly 30 countries
ABOUT US Land Systems
Tactical Wheeled Vehicles Tracked Vehicles Turret Systems
TWV TWAV PZA AMT
4x4 6x6 8x8
Land Rover APC ARMA 6X6 ARMA 8X8 TULPAR ALTAY MIZRAK UKKS Defender URAL KESKİN UKKS COBRA OPEN TURRETS COBRA II INTERNAL SECURITY TURRET KAYA WEAPON STATIONS (MİLAN KAYA II TOW) KALE UCOK ISV BOZOK BASOK
Land Vehicles from 3/4 ton to 60 tons ABOUT US APC (Armoured Personnel Carrier)
Actively in use in 12 countries including Turkey
ABOUT US
AKREP
Otokar’s armoured tactical wheeled vehicle which is successful on Internal Security Operations, low silhouetted and quick
The optimal solution on issues such as strategic areas and border control, convoy protection and patrol
ABOUT US COBRA
Armoured tactical vehicle which has worldwide competitiveness with its unique design, mobility, survivability and superior protection
ABOUT US COBRA II
The new member of COBRA family the most well- known vehicle of Otokar... Large internal volume, high protection.
ABOUT US URAL
Otokar’s new armoured tactical wheeled vehicle that is suitable for safety and internal security usage.
ABOUT US KAYA Mine Resistant Vehicle
The mine resistant vehicle which provides maximum mine and ballistic protection in all types of terrain, offers great mobility
ABOUT US KAYA II Personnel Carrier
The mine resistant personnel carrier vehicle that consists of single cabin with its monocoque body
ABOUT US KALE Mine Resistant Vehicle
Mine resistant personnel carrier
ABOUT US ARMA
High level of ballistic and mine-resistant, modular multi- wheeled armored vehicle family
ABOUT US ARMA 6X6
Modular Arma 6x6, with its large internal volume, amphibious capability and low silhouette
ABOUT US ARMA 8x8
Armoured combat vehicle ARMA 8x8, provides high protection and large internal volume
ABOUT US TULPAR
A new generation tracked armoured vehicle which ends Turkey’s dependence on foreign sources and its all intellectual property rights belong to OTOKAR
ABOUT US
INTERNAL SECURITY VEHICLE
The armoured tactical vehicle specifically designed and developed with the aim of internal security in cities and living areas.
ABOUT US Land Rover Defender
A worldwide brand in tactical vehicles.
ABOUT US Otokar Turret Systems
• Since 1989, Otokar has been working on turret systems to meet the needs and demands of current and potential users in land systems with trained manpower and R&D investments.
• Otokar has nearly 25 years of experience and expertise on the subjects of original design and integration of different turrets.
• Otokar’s 4x4, 6x6, 8x8 and tracked vehicles serve as ideal platforms for different types of turret.
ABOUT US ALTAY Project
Otokar is the PRIME CONTRACTOR of Turkish Main Battle Tank Project ALTAY.
ABOUT US ALTAY Project
The project continues in accordance with the planned timetable.
ABOUT US R&D
. Otokar’s R&D, establishment dates back to 1970’s, today, designing and manufacturing Turkey’s vehicle. . Otokar’s R&D works for products whose intellectual rights belong to itself, with the vision of having and dominating the technology.
ABOUT US R&D Capabilities
. CAD programs for product developments . The Prototype workshops and softwares . Computer-aided analysis and simulation softwares . Test-purpose setup and software
ABOUT US Otokar Test Centres
Dinomometrel Air-conditioned Test Centre; Turkey’s first and only, one of the few facilities in Europe
Turkey’s the highest capacity hydraulic road simulator
Turkey’s the biggest and the world’s most modern Electromagnetic Compatibility Testing Centre ABOUT US Otokar Test Centres
One of the world’s most advanced and modern ballistic laboratories and mine testing equipments
ABOUT US Balance Sheet
31.12.2013 Total Assets (TRY) Total Liabilities&Shareholders Equity (TRY) Current Assets 797.943.771 S.T. Liabilities 687.045.174 Fixed Assets 577.306.385 L.T. Liabilities 414.935.402 Shareholders Equity 273.269.580 Total 1.375.250.156 Total 1.375.250.156
FINANCIAL INDICATORS Income Statement
TRY thousands (UFRS) 31.Dec.2013 31.Dec.2012 Net Sales 1.401.553 1.004.492 Cost of Sales (1.086.542) (780.994) Gross Profit 315.011 223.498 Operating Costs (157.024) (111.018) Real Operating Profit 157.987 112.480 Finacial Expenses (50.045) (28.313) Profit Before Taxes 108.248 84.182 Taxes (11.687) (5.906) Net Profit 96.562 78.277
FINANCIAL INDICATORS Net Profit
Million TRY Net Profit 120
100
80
60
40
20
0 2005 2006 2007 2008 2009 2010 2011 2012 2013
FINANCIAL INDICATORS Cash Flow Statement
TRY thousand (IFRS) 31.Dec.2013 31.Dec.2012
Cash and Cash Equivalants at the begining of the period 47.906 4.470 Net cash provided by operating activities (32.814) 70.145 Net cash used in investing activities (61.800) (69.591) Pre-financing cash flow (94.614) 555 Net cash used in Financing Activities 55.592 42.881 Net decrease/increase in Cash and Cash Equivalents (39.022) 43.435 Cash and cash equivalents at the end of the period 8.884 47.906
FINANCIAL INDICATORS Working Capital
TRY thousands 31.Dec.2013 31.Dec.2012 Current Assets 797.944 680.169 S. T. Liabilities 687.045 530.142 Working Capital 110.899 150.027
FINANCIAL INDICATORS Net Financial Debts
TRY TRY 31.Dec.2013 31.Dec.2012 31.Dec.2013 31.Dec.2012 thousand thousand Cash and S.T. Bank Loans 8.884 47.906 140.964 50.093 Equivalents Trading Securities L.T. Bank Loans 0 0 332.047 236.100
Other Total Financial 0 0 473.011 286.193 Debts Total Financial 8.884 47.906 Assets
TRY thousand 31.Dec.2013 31.Dec.2012 Net Financial Debts 464.127 238.287
FINANCIAL INDICATORS Financial Ratios And Margins
Financial Ratios 2013 2012 Margins 2013 2012 Current Ratio 1,16 1,28 Gross 22,5 % 22,2 % Margins Liquidity Ratio 0,73 0,81 Operating Return On Equity 32,3 % 11,3 % 11,2 % 35,3 % Margin Return on Assets 7 % 7,5 % EBITDA 14 % 14 % Cur.Assets/Tot.Assets 58 % 66 % Margin Short Term Lia./Tot. Lia. 62 % 67 % Net Profit 6,9 % 7,8 % Margin Tot.Lia./Tot.Assets 80 % 77 %
FINANCIAL INDICATORS Margins
Margins 35.0%
30.0%
25.0%
22.5%
20.0% Gross Margin Operating Margin
15.0% EBITDA Margin 14.0% Net Margin 11.2% 10.0%
6.8% 5.0%
0.0% 2005 2006 2007 2008 2009 2010 2011 2012 2013
FINANCIAL INDICATORS Production Units
6000
5000
4000
3000
2000
1000
0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
FINANCIAL INDICATORS Revenue Distribution
Commercial - TRY 682 Mio - 58% DOMESTIC TRY 1.176 Mio Defense Industry - TRY 390 Mio - 33% 84% Other – TRY 103 Mio - 9% 2013
Commercial– TRY 95 Mio - 42% EXPORT TRY 226 Mio Defense Industry– TRY 111mio – 49% 16% Other – TRY 19 Mio – 9%
Commercial – TRY 412 Mio – 56% DOMESTIC TRY 744 Mio Defense Industry– TRY 255 Mio – 34% 74% Otherr – TRY 77 Mio – 10% 2012
Commercial – TRY 70 Mio – 27% EXPORT TRY 260 Mio Defense Industry– TRY 182 Mio – 70%
26% Other – TRY 9 Mio – 3%
FINANCIAL INDICATORS Backlog
TOTAL BACKLOG TRY 192 Mio – USD 24 Mio
DOMESTIC EXPORT
COMMERCIAL DEFENSE INDUSTRY COMMERCIAL DEFENSE INDUSTRY TRY 192 Mio USD 24 Mio
FINANCIAL INDICATORS Capital Expenditures
Capital Expenditures 90 000 80 000 70 000 60 000 50 000
Thousand 40 000
TRY TRY 30 000 20 000 10 000 0 2008 2009 2010 2011 2012 2013
FINANCIAL INDICATORS Stock Performance
120 100 000 90 000 100 80 000 70 000 80
60 000
60 50 000 TRY OTKAR 40 000 40 BIST-100 30 000 20 000 20 10 000
0 0
Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13
Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 Sep-13
Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13
Mar-10 Mar-08 Mar-09 Mar-11 Mar-12 Mar-13
FINANCIAL INDICATORS Dividend
TRY thousand
100 000 9% 8% 91 000 8% 7% 8%
78 000 7%
65 000 5% 64 000 6%
5% 52 000 48 000 4% 3% 4% 39 000 3% 26 000 20 400 2% 15 000 13 000 7 200 1%
0 0% 2008 2009 2010 2011 2012 2013
Dividend Dividend Yield
FINANCIAL INDICATORS Market Capitalisation
TRY million Mcap --> TRY 1.320 mio 2 250 2 000 1 750 1 500 1 250 1 000 750 500 250
0
Jun-11 Jun-08 Jun-09 Jun-10 Jun-12 Jun-13
Sep-11 Sep-08 Sep-09 Sep-10 Sep-12 Sep-13
Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13
Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13
FINANCIAL INDICATORS Sustainable Growth
Million TRY Revenue 1600
1400
1200
1000
800
600
400
200
0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
LONG-TERM OBJECTIVES Growth With Products Which License Rights Belong to OTOKAR
%92 The share of Otokar designed vehicle sales in turnover.
81 Number of owned patents and industrial designs
LONG-TERM OBJECTIVES Otokar Europe
Otokar Europe was established in 2011 in France, in order to support bus sales in Europe.
LONG-TERM OBJECTIVES Growth in Export Markets
• Otokar branded vehicles in nearly 60 countries, on 5 continents
• Sales and service network spread over more than 200 destinations LONG-TERM OBJECTIVES Growth in Export Markets
Millon USD
160 140 120 100 80 60 40 20 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
LONG-TERM OBJECTIVES Shareholders Value Creation
• Continuously increase revenue to ensure high and sustainably dividend yield
• In the framework of our corporate governance and professional management principles, we aim to move further up our company's market value
LONG-TERM OBJECTIVES Otokar Investor Relations
Doğan Seçkinler Please visit www.otokar.com.tr Finance Manager (90 264) 229 22 44 – 6300 [email protected]
Öktem Söylemez Finance Officer (90 264) 229 22 44 – 6316 [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.