(05.02.2016) Prepared based on 2015 YE financial results 1 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 2 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 6 years 3 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. 4 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 .New armoured contractor of tactical wheeled ALTAY Project vehicle, URAL .Tracked Armoured Vehicle, TULPAR 5 ABOUT US 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 2014 2015 6 LONG-TERM OBJECTIVES Partnership Structure Ünver 45% Holding 25% *Other 30% *27% Listed *3% Other 7 ABOUT US Production Plant 552,000 m2 plant, approximately 2100 employee Capacity of Certificates ISO 9001 Quality Standard 2600 Land Vehicle ISO 14001 Environmental Standard 900 Tactical Armoured Vehicle ISO 10002 Customer Satisfaction Quality Standard 4600 Autobus + Minibus ISO 27001 Information Security Management System AQAP 2110 Military Quality Assurance Certificate 1400 Trailer ve Semi-trailer Facility Security Certificate with National and NATO Secrecy Degree 1600 Light Truck ISO 3834-2 Quality Requirements for Fusion Welding of Metallic Materials 8 ABOUT US Employee Profile 2105 Employee White- Blue- collar Collar 621 1484 621 White-Collar Personnel 577 R&D Centre Personnel Engineer 205 Tank Other 241 336 Other 416 9 ABOUT US Number of Employee 2500 2000 1500 1000 500 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 10 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 11 ABOUT US Public Transport Vehicles Otokar, Turkey’s the most preferred bus brand for the sixth time! About 30 thousand buses, carrying millions of passengers in more than 40 countries! 12 ABOUT US Otokar Buses A wide product range from intercity transport to personnel and tourism transport Special Products Researches for Alternative fuels 13 ABOUT US TEMPO The small bus with low operating and investment costs designed for service and personnel transport 14 ABOUT US SULTAN / NAVIGO • Turkey’s best-selling small bus • Different models for intercity transport, service and tourism transport 15 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 16 ABOUT US KENT • Turkey’s most preferred 12 m. intercity bus • 2 Design Award in Europe and Turkey 17 ABOUT US TERRITO The 12-meter bus developed for the European market 18 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 19 ABOUT US Logistic Vehicles About 25 thousands of semi-trailer that provides transportation service in the roads of the world! 20 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 21 ABOUT US Curtainsider Trailer Customer-oriented solutions in the transportation of dry load 22 ABOUT US Van Type Trailer For 13 years, most commonly preferred refrigerated trailer in Turkey for transport of perishable goods in hygienic and safe condition 23 ABOUT US Tanker • Turkey’s first ADR certificated trailer • Wide product range and proficiency 24 ABOUT US Light Truck 25 ABOUT US ATLAS A light truck, with high payload capacity and low operating cost 26 ABOUT US Defence Industry More than 28.000 military vehicle serving in 5 continents and in more than 30 countries 27 ABOUT US Land Systems Tactical Wheeled Vehicles Tracked Vehicles Turret Systems TWV TWAV TAV MBT 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 28 ABOUT US APC (Armoured Personnel Carrier) Actively in use in 12 countries including Turkey 29 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 30 ABOUT US COBRA Armoured tactical vehicle which has worldwide competitiveness with its unique design, mobility, survivability and superior protection 31 ABOUT US COBRA II The new member of COBRA family the most well- known vehicle of Otokar... Large internal volume, high protection. 32 ABOUT US URAL Otokar’s new armoured tactical wheeled vehicle that is suitable for safety and internal security usage. 33 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 34 ABOUT US KAYA II Personnel Carrier The mine resistant personnel carrier vehicle that consists of single cabin with its monocoque body 35 ABOUT US KALE Mine Resistant Vehicle Mine resistant personnel carrier 36 ABOUT US ARMA ARMA is new generation modular multi-wheel configuration armoured vehicle with high level of ballistic and mine protection 37 ABOUT US ARMA 6X6 Arma 6x6, with its large internal volume, amphibious capability and low silhouette 38 ABOUT US ARMA 8x8 Armoured combat vehicle ARMA 8x8, provides high protection and large internal volume 39 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 40 ABOUT US INTERNAL SECURITY VEHICLE The armoured tactical vehicle specifically designed and developed with the aim of internal security in cities and living areas. 41 ABOUT US Land Rover Defender A worldwide brand in tactical vehicles. 42 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 27 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. 43 ABOUT US ALTAY Project Otokar is the PRIME CONTRACTOR of Turkish Main Battle Tank Project ALTAY. 44 ABOUT US ALTAY Project The project continues in accordance with the planned timetable. 45 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. 46 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 47 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 48 ABOUT US Otokar Test Centres One of the world’s most advanced and