(09.02.2017) Prepared based on 2016 YE financial results 1
(09.02.2017)
Prepared based on 2016 YE financial results
1
• INTRODUCTION
• VISION & MISSION • BRIEF HISTORY • SHAREHOLDER STRUCTURE • PRODCUTION PLANT
• EMPLOYEE PROFILE • PRODUCT RANGE • ALTAY PROJECT • R&D and TEST CENTRE
• FINANCIAL STATEMENTS & RATIOS • PRODUCTION-SALES- REVENUE-BACKLOG • CAPITAL EXPENDITURE • STOCK and DIVIDEND PERFORMANCE • MARKET CAPITALISATION
ABOUT US
FINANCIAL INDICATORS
LONG-TERM OBJECTIVES
• SUSTAINABLE GROWTH • GROWTH WITH PRODUCTS WHICH
LICENSE RIGHTS BELONG TO OTOKAR • GROWTH IN EXPORT MARKETS • SHAREHOLDER VALUE CREATION
Agenda
2
Introduction
A global company, intellectual property rights belong to itself and its products are in use on 5 continents and in more than 60 countries
Turkey’s the largest private and 100% domestically owned company in defense industry
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 7 years
ABOUT US 3
Vision
• Otokar’s vision is to preserve the local and national identity of its products by developing technologies in-house, and to provide continued satisfaction for its clients, employees, and shareholders with total excellence philosophy.
Mission
• Otokar’s primary mission is to design, manufacture and market commercial vehicles and various defence industry products with global competitive strength, all developed to meet customer expectations.
Vision&Mission
ABOUT US 4
Brief History
1963 1970s 1980s 1990s 2000s 2010s
Establishment Production of
buses under the license of Magirus-Deutz
Turkey’s first interciy bus The first Turkish
Armoured Vehicle production Partnering with
Koç Group
Production of 4x4 tactical vehicle under the license of Land Rover
Military armoured vehicles by own desing Turkey’s first
export of tactical armoured vehicle Sakarya
plant/factory
Merge with the İstanbul Fruehauf A.S. Production of
small and mid buses Turkey’s first
hybrid bus The prime
contractor of ALTAY Project
Production of City Buses Multi-wheeled
armoured tactical vehicle family Turkey’s first
electric bus Atlas Light Truck New armoured
tactical wheeled vehicle, URAL Tracked Armoured
Vehicle POYRAZ midibus
ABOUT US 5
Sustainable Growth
-
200
400
600
800
1.000
1.200
1.400
1.600
1.800
200220032004200520062007200820092010201120122013201420152016
Revenue Million TRY
LONG-TERM OBJECTIVES 6
Partnership Structure
*27% Listed
*3% Other
45%
*Other 30%
Ünver Holding
25%
ABOUT US 7
Production Plant
552,000 m2 plant, approximately 2300 employee Capacity of
2600 Land Vehicle
900 Tactical Armoured Vehicle
4600 Autobus + Minibus
1400 Trailer ve Semi-trailer
1600 Light Truck
Certificates
ISO 9001 Quality Standard ISO 14001 Environmental Standard ISO 10002 Customer Satisfaction Quality Standard ISO 27001 Information Security Management System AQAP 2110 Military Quality Assurance Certificate Facility Security Certificate with National and NATO Secrecy Degree ISO 3834-2 Quality Requirements for Fusion Welding of Metallic Materials
ABOUT US 8
Office Employees
674
Shop Floor Employees
1599
2273 Employee
Engineer 225
Other 449
674 Office Employees
Tank 249
Other
275
524 R&D Centre Personnel
Employee Profile
ABOUT US 9
Number of Employee
ABOUT US
0
500
1000
1500
2000
2500
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
10
Product Range
Models FRUEHAUF / OTOKAR
Models LAND ROVER DEFENDER / ARMOURED PERSONAL CARRIER / URAL / COBRA / COBRA II / KAYA / KAYA II / KALE / ARMA 6x6 / ARMA 8x8 / INTERNAL SECURITY VEHICLE / TULPAR / ALTAY
Models OTOKAR ATLAS
Public Transport
Defense Industry
Logistic Vehicles
Commercial Vehicles
Models KENT / DORUK / SULTAN / POYRAZ / M-2010 / CENTRO / NAVIGO / VECTIO / TERRITO / KENT ARTICULATED
Light Truck
ABOUT US 11
Public Transport Vehicles
Otokar, Turkey’s the most preferred bus brand for the seventh time!
About 30 thousand buses, carrying millions of passengers in more than 40 countries!
ABOUT US 12
Otokar Buses
A wide product range from intercity
transport to personnel and tourism transport
Special Products
Researches for
Alternative fuels
ABOUT US 13
KENT ARTICULATED
DORUK / VECTIO
KENT
POYRAZ
SULTAN / NAVIGO
TERRITO
POYRAZ
The new small bus with low operating costs and very economic fuel consumption, designed for service transport
ABOUT US 14
SULTAN / NAVIGO
• Turkey’s best-selling small bus
• Different models for intercity transport, service and tourism transport
ABOUT US 15
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 16
TERRITO
The 12-meter bus developed for the European market
ABOUT US 17
KENT
• Turkey’s most preferred 12 m. intercity bus
• 2 Design Award in Europe and Turkey
ABOUT US 18
KENT ARTICULATED
Kent Articulated bus was launched at Busworld Exhibition, Belgium in 2015.
ABOUT US 19
Alternative Fueled Buses
2007 2009 2011 2012
DORUK Hibra
Turkey’s first hybrid bus
DORUK DG
Turkey’s first natural gas powered mid-sized
bus
KENT DG
12 m CNG bus
DORUK ELECTRA
Turkey’s first electric bus
ABOUT US 20
Logistic Vehicles
About 25 thousands of semi-trailer that provides transportation service in the roads of the world!
ABOUT US 21
Trailer
Van Type Trailer Curtainsider Trailers
-TIRLINER -EUROSLIDER -SPEEDSLIDER -MEGALINER -ECOTIR -ECOLINER
-ICELINER -TEXTILE CARRIER
-ADR CERTIFICATED TANKER -TRAILER AND TRUCK-TOP APPLICATIONS
Tanker Trailer
-CONTAINER CARRIER -PLATFORM TRAILER -ROLL CARRIER -TIPPER CHASIS
İnternal Logistic Tools
ABOUT US 22
Curtainsider Trailer
Customer-oriented solutions in the transportation of dry load
ABOUT US 23
Van Type Trailer
For 14 years, most commonly preferred refrigerated trailer in Turkey for transport of perishable goods in hygienic and safe condition
ABOUT US 24
Tanker
• Turkey’s first ADR certificated trailer
• Wide product range and proficiency
ABOUT US 25
Light Truck
ABOUT US 26
ATLAS
A light truck, with high payload capacity and low operating cost
ABOUT US 27
Defence Industry
More than 29.000 military vehicle serving in 5 continents and in more than 30 countries
ABOUT US
28
Land Systems
TWV
Tracked Vehicles
TWAV
Tactical Wheeled Vehicles
Land Rover Defender
TULPAR
APC URAL COBRA COBRA II KAYA KAYA II KALE ISV
4x4 6x6 8x8
Turret Systems
TAV MBT
ARMA 6X6
ARMA 8X8
ALTAY
MIZRAK UKKS KESKİN UKKS OPEN TURRETS INTERNAL SECURITY TURRET WEAPON STATIONS (MİLAN TOW) UCOK BOZOK BASOK
Land Vehicles from 3/4 ton to 60 tons
ABOUT US 29
APC (Armoured Personnel Carrier)
Actively in use in 12 countries including Turkey
ABOUT US 30
AKREP
The optimal solution on issues such as strategic areas and border control, convoy protection and patrol
Otokar’s armoured tactical wheeled vehicle which is successful on Internal Security Operations, low silhouetted and quick
ABOUT US 31
COBRA
Armoured tactical vehicle which has worldwide competitiveness with its unique design, mobility, survivability and superior protection
ABOUT US 32
COBRA II
The new member of COBRA family the most well-known vehicle of Otokar...
Large internal volume, high protection.
ABOUT US 33
URAL
Otokar’s new armoured tactical wheeled vehicle that is suitable for safety and internal security usage.
ABOUT US 34
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 35
KAYA II Personnel Carrier
The mine resistant personnel carrier vehicle that consists of single cabin with its monocoque body
ABOUT US 36
KALE Mine Resistant Vehicle
Mine resistant personnel carrier
ABOUT US 37
ARMA
ARMA is new generation modular multi-wheel configuration armoured vehicle with high level of ballistic and mine protection
ABOUT US 38
ARMA 6X6
Arma 6x6, with its large internal volume, amphibious capability and low silhouette
ABOUT US 39
ARMA 8x8
Armoured combat vehicle ARMA 8x8, provides high protection and large internal volume
ABOUT US 40
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 41
INTERNAL SECURITY VEHICLE
The armoured tactical vehicle specifically designed and developed with the aim of internal security in cities
and living areas.
ABOUT US 42
Land Rover Defender
A worldwide brand in tactical vehicles.
ABOUT US 43
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.
ABOUT US 44
ALTAY Project
Otokar is the PRIME CONTRACTOR of Turkish Main Battle Tank Project ALTAY.
ABOUT US 45
ALTAY Project
The project continues in accordance with the planned timetable.
ABOUT US 46
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 47
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 48
Otokar Test Centres
Turkey’s the highest capacity hydraulic road simulator
Dinomometrel Air-conditioned Test Centre; Turkey’s first and only, one of the few facilities in Europe
Turkey’s the biggest and the world’s most modern Electromagnetic Compatibility Testing Centre
ABOUT US 49
Otokar Test Centres
One of the world’s most advanced and modern ballistic laboratories and mine testing equipments
ABOUT US 50
Balance Sheet
Total Assets (TRY) Total Liabilities&Shareholders Equity (TRY)
Current Assets 1.449.931.634999
5
S.T. Liabilities 1.066.338.910 Fixed Assets 334.336.008
L.T. Liabilities 474.970.640
Shareholders Equity 242.958.092
Total 1.784.267.642 Total 1.784.267.642
FINANCIAL INDICATORS
31.12.2016
51
TRY thousands (IFRS) 31.Dec.2016 31.Dec.2015
Net Sales 1.634.515 1.433.968
Cost of Sales (1.224.669) (1.063.026)
Gross Profit 409.845 370.941
Operating Costs (245.202) (231.281)
Operating Profit 164.643 139.660
Finacial Expenses (96.650) (53.300)
Profit Before Taxes 68.080 87.840
Taxes 1.646 (8.334)
Net Profit 69.726 79.506
Income Statement
FINANCIAL INDICATORS 52
0
20
40
60
80
100
120
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Net Profit Million TRY
Net Profit
FINANCIAL INDICATORS 53
Cash Flow Statement
TRY thousand (IFRS) 31.Dec.2016 31.Dec.2015
Cash and Cash Equivalants at the begining of the period 58.736 44.528
Net cash provided by operating activities 401.396 (81.232)
Net cash used in investing activities (76.629) (52.252)
Pre-financing cash flow 324.767 (133.484)
Net cash used in Financing Activities (346.295) 147.692
Net decrease/increase in Cash and Cash Equivalents (20.137) 14.208
Cash and cash equivalents at the end of the period 38.599 58.736
FINANCIAL INDICATORS 54
Working Capital
TRY thousands 31.Dec.2016 31.Dec.2015
Current Assets 1.449.932 1.019.693
S. T. Liabilities 1.066.339 784.890
Working Capital 383.593 234.803
FINANCIAL INDICATORS 55
TRY thousand
31.Dec.2016 31.Dec.2015
Cash and Equivalents
38.598 58.736
Trading Securities 0 0
Other 0 0
Total Financial Assets
38.598 58.736
TRY thousand
31.Dec.2016 31.Dec.2015
S.T. Bank Loans 4.672 105.983
L.T. Bank Loans 425.447 509.295
Total Financial Debts
430.119 615.278
TRY thousand 31.Dec.2016 31.Dec.2015
Net Financial Debts 391.521 556.542
Net Financial Debts
FINANCIAL INDICATORS 56
Financial Ratios 2016 2015
Current Ratio 1,36 1,30
Liquidity Ratio 0,90 0,75
Return On Equity 28,7% 32,4%
Return on Assets 3,9% 5,0%
Cur.Assets/Tot.Assets 81% 64%
Short Term Lia./Tot. Lia. 60% 49%
Tot.Lia./Tot.Assets 86% 85%
Margins 2016 2015
Gross Margins
25,1% 25,9%
Operating Margin
10,1% 9,7%
EBITDA Margin
12,9% 12,9%
Net Profit Margin
4,3% 5,5%
Financial Ratios And Margins
FINANCIAL INDICATORS 57
Margins
FINANCIAL INDICATORS 58
25,3% 25,9% 25,1%
9,9% 9,7% 10,1%
13,5% 12,9% 12,9%
5,9% 5,5%
4,3%
0,0%
5,0%
10,0%
15,0%
20,0%
25,0%
30,0%
35,0%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Margins
Gross Margin
Operating Margin
EBITDA Margin
Net Margin
Production Units
0
1.000
2.000
3.000
4.000
5.000
6.000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
FINANCIAL INDICATORS 59
Revenue Distribution
FINANCIAL INDICATORS
2016 TRY 1.634,5
Mio
DOMESTIC TRY 1.192,7 Mio
73%
EXPORT TRY 441,8 Mio
27%
COMMERCIAL TRY 384,1 Mio - 32%
DEFENCE TRY 512,1 Mio - 43%
OTHER TRY 296,5 Mio - 25%
COMMERCIAL TRY 259,8 Mio – 59%
DEFENCE TRY 161 Mio - 36%
OTHER TRY 21 Mio – 5%
60
DOMESTIC TRY 1.015 Mio
71%
EXPORT TRY 419 Mio
29%
COMMERCIAL TRY 470,8 Mio - 46%
DEFENCE TRY 214,6 Mio - 21%
OTHER TRY 329,6 Mio - 33%
COMMERCIAL TRY 178,4 Mio - 43%
DEFENCE TRY 188,7 Mio - 45%
OTHER TRY 51,9 Mio –12%
2015 TRY 1.434 Mio
DOMESTIC EXPORT
TOTAL BACKLOG EUR 103,7 Mio+ USD 16 Mio
COMMERCIAL
DEFENCE INDUSTRY
EUR 103,7 Mio
COMMERCIAL
DEFENCE INDUSTRY USD 16 Mio
Backlog
FINANCIAL INDICATORS 61
Capital Expenditures
FINANCIAL INDICATORS 62
0
5.000
10.000
15.000
20.000
25.000
30.000
2009 2010 2011 2012 2013 2014 2015 2016
TRY
Th
on
san
ds
Capital Expenditures
Stock Performance
FINANCIAL INDICATORS 63
-50%0%
50%100%150%200%250%300%350%400%450%
OTKAR %
BIST100%
-10%
0%
10%
20%
30%
40%
50%
60%
OTKAR %
BIST100%
Dividend
FINANCIAL INDICATORS 64
7.200
20.400 15.000
48.000
64.000
100.000
80.000
72.000
4%
5%
3%
8%
7%
8%
4%
3%
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
0
20.000
40.000
60.000
80.000
100.000
2008 2009 2010 2011 2012 2013 2014 2015
TRY thousand
Dividend Dividend Yield
Market Capitalisation
FINANCIAL INDICATORS 65
0
500
1.000
1.500
2.000
2.500
Şub
at 1
2
May
ıs 1
2
Ağu
sto
s 1
2
Kas
ım 1
2
Şub
at 1
3
May
ıs 1
3
Ağu
sto
s 1
3
Kas
ım 1
3
Şub
at 1
4
May
ıs 1
4
Ağu
sto
s 1
4
Kas
ım 1
4
Şub
at 1
5
May
ıs 1
5
Ağu
sto
s 1
5
Kas
ım 1
5
Şub
at 1
6
May
ıs 1
6
Ağu
sto
s 1
6
Kas
ım 1
6
Şub
at 1
7
TRY million
Mcap--> TRY 2.458 mio
Growth With Products Which License Rights Belong to OTOKAR
The share of Otokar designed vehicle sales in turnover.
98%
Number of owned patents and industrial designs
238
LONG-TERM OBJECTIVES 66
Otokar Europe
Otokar Europe was established in 2011 in France, in order to support bus sales in Europe.
LONG-TERM OBJECTIVES 67
Growth in Export Markets
• Otokar branded vehicles in more than 60 countries, on 5 continents
• Sales and
service network spread over more than 200 destinations
LONG-TERM OBJECTIVES 68
Millon USD
Growth in Export Markets
LONG-TERM OBJECTIVES 69
0
20
40
60
80
100
120
140
160
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Shareholders Value Creation
LONG-TERM OBJECTIVES
• 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
70
Otokar Investor Relations
Doğan Seçkinler Finance & IR Manager +90 264 229 22 44 – 6300 [email protected] Öktem Söylemez IR Officer +90 264 229 22 44 – 6316 [email protected]
Please visit www.otokar.com.tr
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.
71