ASELSAN 2010 ANNUAL REPORT 2 COMPANY PROFILE Message from the Chairman of the Board of Directors Dear Esteemed Partners, • Navigation and Guidance Systems • Avionics Systems, ASELSAN’s Vision • Weapons Systems • Naval Systems Becoming one of the world’s fifty largest defense in- • C4ISR Systems dustry companies by creating state of the art and • Homeland Security Systems, original technological opportunities and talents. • Intelligent Transportation Systems ASELSAN’s Mission A subsidiary of the Turkish Armed Forces Founda- tion, ASELSAN operates under four divisions working Becoming a leader in the design, development, pro- on design, production, systems integration, moderni- duction and sustainability of contemporary, high zation and post-sale support services. quality and cost-effective products and system solu- tions compatible with developing technologies which ASELSAN has in its employ 3,840 staff, includ- will render the Turkish Armed Forces as self-suffi- ing 2,200 engineers. Engineers make up 57% of cient as possible with regard to everything related to ASELSAN staff. electricity, electronics, electronic warfare, communi- cations, microwaves, electro-optics, guidance, com- ASELSAN, with the high tech products and systems puters, information technology, software, cryptology it developed, maintained its title as the largest or- and security within land, air, sea, space and civilian ganization of the Turkish Defense Industry in 2010 applications, and which will execute all customers’ as well. As of 2010, ASELSAN improved its position needs to the fullest extent; and developing the assets from 93rd in the list of the world’s top 100 defense in- and resources belonging to ASELSAN, relentlessly dustry companies to 86th, making it the only Turkish adding to their value. company mentioned in this list. ASELSAN is taking unwavering strides toward its goal of becoming one ASELSAN’s Fields of Operation of the 50 largest companies in the world. • Military Communications Systems, According to the International Financial Reporting • Radar Systems, Standards, in 2010, ASELSAN made consolidated net • Electronic Warfare Systems, sales of 792 million US Dollars. Of the net sales, which • Electro-Optic Systems increased by 16% in 2010, 51 million US Dollars made 3 up export revenues and 741 million US Dollars com- APCO Digital Radio sales which started at the end prised domestic sales. of 2006 to the USA continued in 2010. 4700 APCO Digital Radio sales are expected to increase following As of the end of 2010, ASELSAN has 98 ongoing pro- new product developments in the same category. jects, with remaining orders worth 3.8 billion US Dol- lars from related projects. Proposals have been submitted for the export of Py- thon and Boa Thermal Weapon Sights with contracts The noteworthy projects carried out in 2010 are be- expected in 2011. Proposals have also been made low: for SCOUT and Falconeye Electro-Optic Sensor sys- tems. • ATAK Project • Low Altitude Air Defense Weapon System and ASELSAN views its subcontractors as business part- Fire Control Unit Project ners to collaborate with from the design process • MILGEM Combat System Supply Project onwards, having strong engineering infrastructure • ADOP-2000 Fire Support Automation Project and supportive of efforts to decrease costs as well • 3D Mobile Search Radar Project as responsive towards customers’ evolving needs. In • Turkish Land Forces Command Avionic Sys- 2010, orders worth about 460 million US Dollars were tem Modernization Project (HELIMOD II Project) placed with over 600 domestic companies, most of • Gendarmerie Integrated Communications which were SMEs. and Information System (JEMUS) Kastamonu, Konya Radio System As the leading organization in the Turkish electron- • TAF Software Defined Radio Supply Contract ics industry, we at ASELSAN extend a heartfelt thanks • Land based Stand Off Jammer Remote ES/ E to our customers, who have played an enormous role Warfare Capability Building Project in bringing ASELSAN to its position as a leader, and • Pakistan Software Defined Radio Project to our staff, who have selflessly carried ASELSAN to • ALTAY Project where it is today. In the R&D centers located in our Four Divisions, near- We submit the annual financial statements, revenue ly 1500 of our engineers work on defense technology tables and profit distribution proposal for the 2010 design. ASELSAN, with the firm belief that “a coun- fiscal year to your approval and suggestions. try’s technological wealth is composed of the various technologies in its possession”, allocates about 6-7% of its yearly turnover to meet R&D costs, which it fi- Respectfully yours, nances through its own resources. In 2010, ASELSAN spent 38 million US Dollars of its own resources on R&D related activities. ASELSAN stocks, which started 2010 out at 5.62, went down to 4.95 as the lowest value and peaked at 9.00 within the year and closed at 8.24 at the end Hasan MEMİŞOĞLU of the year with a 46.6% value increase. Accordingly, Chairman of the Board the market value of our company has become 1.25 billion US Dollars as of the end of 2010. ASELSAN continued export activities with great de- termination in 2010 as well. In line with its strategic plan, ASELSAN has completely fulfilled the goals set for 2010, and provided not only the Turkish Armed Forces, but also the armed forces of Turkey’s allies as well as domestic and international civilian custom- ers with state of the art products and systems. The number of countries to which ASELSAN has exported its products has reached 37 with the contracts signed in 2010. Technology transfer negotiations have taken place concerning the common production of Night Vision Systems abroad. In this context, a contract has been signed for the production of Monocular Night Vision Goggles. ASELSAN 2010 ANNUAL REPORT 4 COMPANY PROFILE Message from the General Manager In 2010, which was an especially productive year for Industries concerning the development of an “Active ASELSAN, important projects were completed and Protection System” and “Identification Friend or Foe delivered for the Turkish Land, Naval and Air Force System”, both of which will be handled within the AL- Commands as well as the General Command of Gen- TAY Project. darmerie, and contracts were signed for remarkable national and international projects. Noteworthy ac- Within the scope of the ATAK Project subcontract, tivities carried out in 2010 are presented below. which involves the design and integration of the Avionics and Weapon Systems by ASELSAN for the Within the scope of the Battle Tank Development ATAK T-129 Attack, Reconnaissance/Surveillance (ALTAY) Project strictly using national resources, Helicopters using national resources for the Turkish ASELSAN continued prototype production and de- Land Forces Command, the detailed design phase velopment work related to the Tank Firing Control was completed. The design work on the units origi- System, Electrical Gun and Turret Drive Units, Tank nally developed within the scope of the ATAK project Command Control Communication and Information was completed, the first group was produced and the System, Tank Laser Warning System and Remote qualification tests were initiated. Control Weapon System. Of the systems currently be- ing developed, the Tank Firing Control System entails Development and production activities continued on independent commander and shooter periscopes the Software Defined Radio Project for the Turkish with the ability to take over each other’s firing func- Armed Forces’ land, sea and air units. tions fully due to the redundancy architecture. In the event that one of the periscopes is damaged or either In 2010, the integration and system verification ac- the shooter or the commander is unable to resume tivities were completed on the new and improved combat, the tank will maintain full battle functions Tactical Area Communications System (TASMUS-G), on duty. consequently delivered to the Turkish Armed Forces. This system entails new, more developed features Furthermore, the operational talent of the tank is for- and is a follow up to the TASMUS Project, whose most tified with its various operating modes, as well as its important application in the tactical area is its Net- full compatibility with the Laser Warning System and work Enabled Capability (NEC). the Remote Control Weapon System, both of which can be easily integrated to the tank. In addition to the The Acceptance tests for the Mobile HF Direction ongoing system development work, negotiations are Finding and Monitoring System and Radio Frequen- underway with the Turkish Secretariat for Defense cy Controlled Improvised Explosive Device Jamming 5 (RCIED) System were completed. The design, produc- tion and integration work was continued on the RU- ZGAR class Combat Boat Radar Electronic Support System, MILGEM Radar Electronic Support System, Land Platform Remote Jamming System and V/UHF Jamming System projects. One ASELFLIR-300T and a set of Support Equipment were delivered to the Turkish Aerospace Industries (TAI) within the scope of the Indigenous Turkish Un- manned Air Vehicle Program (ANKA). Business development and pre-design related activi- ties within the scope of the New Type Submarine and AY Class Submarine Modernization Projects contin- ued on the Radar Electronic Support System, Naval Surface Platform Remote Jamming System, Facility Protection and Preventive Electronic Warfare. weapons systems of the Coast Guard Command’s The integration of a 40mm Grenade Launcher, Search/Rescue boats. The development of the 40mm 7.62mm Machine Gun and 12.7mm GAU-19/A Ga- Grenade Launcher Control System (TAKS) to be used tling Gun for the Stabilized Machine Gun Platform in both projects has reached completion. (STAMP) developed for surface naval platforms was completed. Further, the production, installation and All of the deliveries have taken place for the Işık testing activities were completed for the 12.7mm Sta- Project, which consists of the modernization of the bilized Machine Gun Platform and 25mm Stabilized navigation and communication subsystems of RF-4E Gun (STOP) as per domestic and international con- reconnaissance fighter aircrafts, and the Şimşek Pro- tracts.