Annual Report 2013

Transcription

Annual Report 2013

Reliable Technology
ANNUAL
REPORT
2013
Contents
ASELSAN AT A GLANCE
- Corporate Profile
- Our Shareholders
- Subsidiaries and Affiliates
- Local Affiliates
- Global Affiliates
- Facilities in Turkey
- Organization
- Financial Highlights
- Human Resources
- R&D Activities
- Exports
- Cooperation between Universities and Industry
- Collaboration with the Subsidiary Industry
For detailed information please visit the
Corporate Governance section at
www.aselsan.com.tr
www.aselsan.com.tr
Corporate Profile
AN INSTITUTION THAT TURNS KNOWLEDGE INTO POWER AND TRUST
The Land, Naval and Air Forces Foundations were founded during 1970s with the donations of the
Turkish people in order to cover Turkey’s military defence needs through national means. ASELSAN
became operational in 1975 under the Land Forces Foundation. Today, ASELSAN is an institution
under the Turkish Armed Forces Foundation (TAFF). As underlined by the founders of ASELSAN
during the foundation of the company, our basic strategy is to develop unique products and systems
by making use of critical technologies.
MISSION;
To design and develop
indigenous systems in the
fields of defense electronics by
using high-end technologies
surpassing customer
expectations, to utilize our
accumulated know-how for
commercial applications, and
to increase the value of our
assets and resources.
VISION;
To become one of the top fifty
defense industry companies
in the world by creating
values with customer oriented
approach and state-of-the-art
technology.
OUR VALUES;
Customer Oriented
Dynamic
Effective
Innovative
Modest
Socially and Environmentally Aware
Reliable
Team Spirit
Work Discipline
ASELSAN at a Glance
ASELSAN Annual Report 2013
2
Our Shareholders
OUR SHAREHOLDERS
SHARE AMOUNT (TL)
SHARE (%)
422,912,812.23
84.58
76,509,342.32
15.30
577,845.45
0.12
500,000,000.00
100.00
Turkish Armed Forces Foundation
Quoted in Borsa Istanbul
Other Shareholders
Total
84.58%
TAFF
15.30%
BIST
84.58% Turkish Armed Forces Foundation (TAFF)
15.30% Quoted in Borsa Istanbul
0.12% Other Shareholders
Subsidiaries and Affiliates
SUBSIDIARIES
SHARE AMOUNT
SHARE (%)
ASELSAN Baku
1,735,212 USD
100.000
AselsanNet Ltd. Şti.
1,000,000 TL
100.000
37,582,350 TL
96.365
Mikroelektronik Ltd. Şti.
55,250 TL
85.000
IGG ASELSAN Integrated Systems LLC
98,000 UAE Dirham
49.000
Mikes A.Ş.
Kazakhstan ASELSAN Engineering LLP
ASELSAN Middle East PSC. Ltd.
Roketsan A.Ş.
34,300,000 KAZAKHSTAN Tenge
1,225,000 JORDAN Dinar
49.000
49.000
21,906,223 TL
14.897
Aspilsan A.Ş.
56,000 TL
1.000
Heaş A.Ş.
26,000 TL
0.051
ASELSAN at a Glance
Local Affiliates
İSTANBUL
MİKROELEKTRONİK
In 2010 ASELSAN became a
shareholder of the company, holding
85% of the shares. The company
was founded to design and develop
complete full circuits and electronic
systems.
ANKARA
ASELSANNET
The Company, in which ASELSAN
holds 100% of the shares, was
founded in 2006 to provide
professional institutions and agencies
with electronics and communication
solutions. It has been also involved in
the turnkey delivery and installation of
communication system infrastructure
since 2009.
MİKES
Founded in 1987, MİKES specializes
in the design, development and
production of civilian and military
electronic equipment, particularly
combat aircraft electronic warfare
self-protection systems. ASELSAN
holds 96.365% of the shares in the
company.
ROKETSAN
ROKETSAN was founded in 1988
with the purpose of producing all
types of missiles, rockets, rocket
launchers and rocket fuel, as
well as engines, warheads and
other components and producing,
marketing and selling all types of
military and professional products
and their components. ASELSAN
holds 14.897% of the company’s
shares.
3
4
ASELSAN at a Glance
Global Affiliates
IN 2013, OUR JOINT VENTURE CAPITAL COMPANIES IN THE
UAE, KAZAKHSTAN AND JORDAN ENTERED OPERATION AFTER
COMPLETING THE NECESSARY INVESTMENTS.
1- ASELSAN-BAKU
(Baku - Azerbaijan)
ASELSAN is the sole shareholder of
the company. It was founded in 1998
to carry out the promotion/marketing
and sales activities for military and
civilian communication equipment.
2- KAZAKHSTAN ASELSAN
ENGINEERING
(Astana - Kazakhstan)
KAE was established in 2011 to
produce and develop electronics
systems and to carry out the
necessary repair-maintenance work
with the aim of covering Kazakhstan’s
military and civilian needs. ASELSAN,
SSM and Kazakhstan Engineering
hold 49%, 1% and 50% of the
company’s shares, respectively.
ASELSAN at a Glance
5
3- ASELSAN
MIDDLE EAST
4- IGG ASELSAN
INTEGRATED SYSTEMS
5- ASELSAN
South Africa BRANCH
(Amman - Jordan)
The KADDB Investment Group (KIG)
(with 51% stake) and ASELSAN (with
49% stake) founded a joint venture
capital company in order to produce
night vision devices for the Jordanian
Armed Forces.
(Abu Dhabi - UAE)
The Company was founded in 2011 to
produce, test and integrate ASELSAN
products in the United Arab Emirates
(UAE) and to sell these products and
to provide after sales support in Gulf
countries, particularly in the UAE.
ASELSAN and IGG hold 49% and 51%
stakes in the company, respectively.
(Pretoria - Republic of South Africa)
The branch was founded in 2011 for
the design of electro-optic systems,
and the promotion/marketing of
ASELSAN products in South Africa
and the other countries in the region.
2
1
3
4
5
6
ASELSAN at a Glance
Facilities in Turkey
ANKARA
Macunköy Facilities
The Macunköy Facilities are located on an 186,000 m2 plot of land, of which 110,000 m2 is enclosed. The General
Management, Communication and Information Technologies Division, Defence Systems Technologies Division and Radar,
Electronic Warfare and Intelligence Systems Division carry out their operations at the ASELSAN Macunköy Facilities.
Akyurt Facilities
The Akyurt Facilities are located on a total land area of 231,000 m2 with 54,000 m2 of indoor space. The
Microelectronics, Guidance and Electro-Optics Division operate at the ASELSAN Akyurt Facilities.
Gölbaşı Facilities
The Ankara Gölbaşı Facilities are currently under construction. The new facilities will carry out various activities on
radar and electronic warfare systems for land, air, naval, space and other unmanned platforms. Construction work
on the facilities started in 2013, with the facilities being built on a total land area of 350,000 m2 with 75,000 m2 of
indoor space. The first phase of the facilities is planned to be completed in 2014.
ASELSAN at a Glance
7
Organization
Internal Audit
İnci UYSAL
BOARD OF DIRECTORS
Necmettin BAYKUL - Chairman (Managing Member)
Erhan AKPORAY - Vice Chairman (Managing Member)
Cumhur Sait Şahin TULGA
Lamia Zeynep ONAY
Halil SARIASLAN
Hasan CANPOLAT
Orhan AYDIN
Mustafa Murat ŞEKER
Murat ÜÇÜNCÜ
CEO AND HEAD OF THE EXECUTIVE BOARD
Cengiz ERGENEMAN
Akyurt
Macunköy
Division CEO
(Communication and
Information
Technologies Division)
and Member of the
Executive Board
Faik EKEN
Macunköy
Macunköy
Division CEO
(Microelectronics,
Guidance & ElectroOptics Division) and
Member of the
Executive Board
Özcan KAHRAMANGİL
Division CEO
(Defense Systems
Technologies Division)
and Member of
the Executive
Board
Fuat AKÇAYÖZ
Division CEO
(Radar, Electronic
Warfare and
Intelligence Systems
Division) and Member
of the Executive Board
Ergun BORA
CFO
and
Member of the
Executive Board
Marketing Director
and Member
of the Executive
Board
Strategy Management
Director and
Member of the
Executive Board
Procurement
Director and
Member of the
Executive Board
Support Services
Director
and Member of
the Executive Board
Ahmet DEMİR
Mustafa ERTÜRK
Baki ŞENSOY
Afşin AKKERMAN
Nihat IRKÖRÜCÜ
Contracts
IT Management
Baran ÖZER
Fatih BİLGİ
ASELSAN at a Glance
8
Financial Highlights
SUMMARY BALANCE SHEET (TL MILLION)
2013
2012
2011
2010
4,008
3,324
2,392
2,273
Intangible Assets
373
298
172
113
Fixed Assets
742
412
350
272
1,612
1,266
1,019
885
SUMMARY INCOME STATEMENT (TL MILLION)
2013
2012
2011
2010
Sales Revenue
2,171
1,633
1,502
1,212
Gross Profit
559
398
396
308
Net Profit for the Year
238
306
161
227
2013
2012
2011
2010
R&D Expenses (TL)
728
581
447
378
Sales per Employee
406
321
320
285
EBITDA Margin (%)
20
16
19
18
Average Return on Equity (%)
17
26
17
31
Total Assets
Total Equity
ASELSAN at a Glance
R&D Expenses
(TL million)
728
581
2013
2012
2011
2010
2013
378
447
1,266
Net Profit for the Year
(TL million)
238
161
398
2012
227
396
2013
2012
2011
2010
2013
31
2010
26
20
19
2013
321
2012
16
320
Average Return on Equity
(%)
17
2013
2012
2011
2012
2011
2010
2013
2010
17
285
2011
18
EBITDA Margin
(%)
406
Sales per Employee
(TL thousand)
2010
2013
2012
308
2011
559
306
1,019
2011
2012
885
Gross Profit
(TL million)
2,171
1,633
1,502
2011
2010
1,212
Net Sales Revenue
(TL million)
2010
2013
412
2012
350
2011
2010
272
742
1,612
Total Equity
(TL million)
Fixed Assets
(TL million)
9
10
ASELSAN at a Glance
Human Resources
ASELSAN pursues a management
style in which it recruits successful
and dynamic talented individuals,
as required by its vision, contributes
to its sustainable achievements and
generates added value through
employee-oriented approaches, while
always standing by its employees.
Number of Personnel 4430*
60%
35%
Engineer
Postgraduate
60% Engineer
27% Technician
7% Other Faculties
6% Other
35% Postgraduate
33% Bachelor’s degree
32% Other
*Employee’s with Indefinite Contract Type
R&D Activities
By underlining the concept of
“technology” in its vision, ASELSAN
has adopted the principle of
“becoming one of the world’s top 50
defense corporations by continuously
generating value with its customeroriented approach and its staff
which direct the technology”. The
company considers R&D activities
an important instrument in achieving
its target. Besides the R&D activities
that it has performed in accordance
with its contractual responsibilities,
ASELSAN also allocates an average
of 6% of its annual turnover to R&D
activities, which are financed through
the company’s shareholders’ equity.
Consolidated R&D Expenditures (US$, million) in 2013
R&D Expenditures Financed from Internal Resources
76
R&D Expenditures Financed from External Resources
307
Total R&D Expenditures
383
LEADERSHIP IN
TECHNOLOGY
DEVELOPMENT AWARD
ASELSAN at a Glance
Exports
2013 was a year in which ASELSAN
has taken firm steps towards its target
to rank among the top 50 companies
in the global defense industry. With
the addition of two new countries in
2013, ASELSAN has exported to a
total of 47 countries. It is a significant
achievement for ASELSAN, which
signed a total of US$ 213 million in
new contracts and received new
orders in foreign markets in 2013.
47
The number of countries
which ASELSAN exports to
US$ 213
million
The volume of orders
placed by customers in
foreign countries in 2013
ASELSAN has achieved successful
results by determining target regions/
countries and executing intensive
marketing by focusing solely on
these markets. Factors underlying
ASELSAN’s achievements were,
besides direct sales, co-production
activities in target countries,
technology transfer and sales to
third countries in collaboration with
international platform manufacturers.
Cooperation between Universities and Industry
Universities are one of the most
important stakeholders in defense
companies whose primary capital
is qualified human resources. As
well as providing qualified human
resources and training opportunities,
universities provide an increasing
contribution to the industrial sector’s
technology development activities.
Since 2009 ASELSAN has
collaborated with 24 universities in
240 projects worth a total of US$ 132
million.
24
Number of universities that
ASELSAN has cooperated
with
US$ 132
million
The total value of
the projects
Collaboration with the Subsidiary Industry
ASELSAN considers Small and
Mid-Sized Enterprises (SMEs)
and companies in the subsidiary
industry to be its business partners.
Through the work carried out in
2013, ASELSAN paid a total of
US$ 280 million to 399 domestic
subcontractors, 332 of which were
SMEs.
399
US$ 280
million
Total number of domestic
subcontractors (including
SMEs)
Total amount of payments
made by ASELSAN to the
subsidiary industry
11
12
ASELSAN at a Glance
ASELSAN at a Glance
13
MANAGEMENT
• Chairman’s Message
• Board of Directors
• Corporate Governance
• CEO’s Message
• Executive Board
IN 2013
• Highlights
• R&D
• Awards and Achievements
FIELDS OF ACTIVITY
• Military Communication Systems
• Public Safety Communication Systems
• Satellite, Avionic and Naval Communication
Systems
• Encryption and Information Security Systems
• Avionic Systems
• Electro-Optic Systems
• Naval Systems
• Air and Missile Defense Systems
• Command, Control, Communications and
Computer Systems
• Unmanned Systems
• Coastal and Border Security Systems
• Weapon Systems
• Radar Systems
• Electronic Warfare Systems
• Intelligent Transport Systems
SUSTAINABILITY
• Ethics and Orientation
• Human Resources
• Supply Management
• Environmental Management and Occupational
Health & Safety
• Abbreviations
FINANCIAL HIGHLIGHTS
• Consolidated Balance Sheet
• Consolidated Income Statement
• Consolidated Comprehensive Income Statement
• Consolidated Statement of Changes in Equity
• Consolidated Cash Flow Statement
• Contact
14
Management
Chairman’s Message
IN 2013, WE KEPT OUR PROMISE TO THE
INVESTORS.
Necmettin BAYKUL
Chairman of the Board of Directors
Dear Shareholders,
Developed economies continued
to demonstrate the signs of a
slowdown in 2013, as in 2012, while
the economic growth in emerging
economies, including Turkey, began
to lose momentum.
Despite the negative trend in
macroeconomic indicators,
our domestic defense industry
maintained its growth in 2013
due to the increasing defense
expenditures in such regions where
we value ourselves in strong position,
particularly in the Middle East, the
Gulf Region and the Caspian Region.
Turnover exceeds US$ 1.14 billion.
ASELSAN’s consolidated total
sales revenue grew by 25% in
2013, reaching US$ 1.14 billion.
We covered significant ground in a
number of projects in 2013, including
ATAK, the Modular Temporary Base
Region, 3B Maritime Search Radar,
the Low Altitude Air Defense Missile
System and JEMUS in Turkey and in
the Software-Based Radio Systems
and STAMP/STOP projects abroad.
Again in 2013, we successfully
completed the MILGEM Warfare
System 2nd Battleship Project.
Management
Despite our increasing sales figures,
our total backlog was maintained at
around US$ 4 billion as of the end of
2013 with the effect of around US$
1.1 billion in new orders which we
received throughout the year. A wave
of new orders were received in 2013
to meet the needs of our customers,
which were added to our backlog;
for our domestic customers, these
included large scale projects such as
the X-Band Satellite Communication
System, the Landing Ship Tank,
Multifunction Phased Array Radar
Concept Display Phase (ÇAFRAD
Phase 1) and Homeland Security; for
our foreign customers (in the Middle
East) these included projects to meet
their needs for communication and
electro-optical systems.
With the positive contribution of
devaluing Turkish Lira, the growth
in our profit margins became more
apparent in 2013. Our EBITDA
(Earnings before interest, tax,
depreciation and amortization)
margin, which our shareholders
attach particular importance to, had
climbed to over 20% by the end
of the year. Our return on equity
reached 15% in 2013. We had
promised investors profitable growth
at the beginning of the year; with
the above-mentioned results, we are
pleased to confirm that we were able
to keep our promise.
Maintaining its sustainable growth
strength independent of the general
economic conjuncture, ASELSAN
shares have also maintained their
position in institutional investors’
portfolios in 2013 on the back of
investor confidence in our company.
Stock markets suffered major losses
in 2013, while ASELSAN was one of
the few equities in the BIST-30 index
in the same period to provide its
investors with a high return.
A strengthened presence in the
global defense market
Thanks to our technological depth,
R&D strength and product diversity,
we maintained our steady growth in
the global league during 2013, as we
have in the past 7 years. Achieving
74th ranking in the list of global
defense companies is a development
in line with our vision to become one
of the world’s 50 largest defense
companies.
Our foreign sales, which are very
important in terms of our organic
growth, increased by 38% YoY to
US$ 209 million in 2013. The total
volume of orders placed by our
foreign customers in 2013 alone
amounted to around US$ 215 million.
This was an important step taken
towards our target of raising the
share of our foreign sales in total
turnover to 25%.
Growing together with our foreign
subsidiaries
In 2013, we completed our
investments in joint venture
companies in the United Arab
Emirates, Kazakhstan and Jordan
in order to strengthen our presence,
particularly in the Middle East, the
Gulf Region and Caspian Region
in the past three years - and these
companies entered operation in the
second half of 2013. Our foreign
subsidiaries began to accept their
first orders from the local authorities
responsible for procurement in the
countries where they are operational.
Sustainable growth is our most
important target.
The Undersecretariat for Defense
Industries primarily aims to raise the
share of local companies in defense
procurements. In addition to this,
one of our most important priorities
is to maintain our organic growth
15
in 2014 by expanding our product
range and penetrating new markets
and new fields of activity, in line with
our target of increasing the share of
export sales, while also turning our
R&D contracts into orders for serial
production by fulfilling our liabilities
in these contracts and to transfer our
existing technological know-how to
civilian areas.
ASELSAN’s current position is
the result of almost 40 years of
knowledge and experience.
Our success is built upon our
highly-qualified, hard-working and
responsible human resources, and
the importance we have attached
to our technological independence
since our establishment.
On the outset of our 39th operating
year, I would like to take this
opportunity to extend my thanks to
you, our esteemed shareholders,
as well as all of our employees,
customers and suppliers who have
brought ASELSAN to its present
situation and will carry us into the
future. I also would like to forward
my thanks to all of our stakeholders
personally and on behalf of our
Board of Directors.
Necmettin BAYKUL
Chairman of the Board of Directors
Management
16
Members of the Board of Directors
1
2
3
4
1- Necmettin BAYKUL
2- Erhan AKPORAY
After retiring from the Turkish Armed
Forces in 2009, Mr. Baykul was elected
as a Board member in ASELSAN on
March 30th, 2010. He served as the
Vice Chairman of the Board of Directors
in ASELSAN between March 30th, 2010
and May 15th, 2012. He was elected as
the Chairman on May 16th, 2013.
After retiring from the Turkish Armed
Forces in 2009, Mr. Akporay was
elected as a Board member in
ASELSAN on March 31st, 2011. He
is also a member of the Corporate
Governance Committee and a member
of the Early Detection and Management
of Risks Committee under ASELSAN.
Chairman of the Board of Directors and
Managing Member
Vice Chairman of the Board of Directors and
Managing Member
3- Cumhur Sait Şahin TULGA
Board Member (Independent)
Mr. Tulga, who is the founding partner
and the director of the Mentoro Limited
Company, was elected as a Board
member in ASELSAN on March 30th,
2012. Mr. Tulga is also a member of the
Audit Committee and the Chairman of
the Corporate Governance Committee
under ASELSAN.
5
4- Assoc. Prof. Dr. Lamia Zeynep
ONAY
Having earned her doctorate in 1985,
Assoc. Prof. Dr. Onay was elected
as a Board member on March 30th,
2012. Assoc. Prof. Dr. Onay is also a
member of the Audit Committee and
the Chairman of the Early Detection
and Management of Risks Committee
under ASELSAN.
5- Prof. Dr. Halil SARIASLAN
Having earned his professorship title in
1988, Prof. Dr. Sarıaslan was elected
as a Board member in ASELSAN on
March 30th, 2012. Prof. Dr. Sarıaslan
is also the Chairman of the Audit
Committee under ASELSAN.
Management
6
7
8
6- Hasan CANPOLAT
7- Orhan AYDIN
Board Member
Board Member
Assoc. Prof. Dr. Canpolat completed
his doctorate in 2002. He served
as a Governor and the Deputy
Undersecretary of the Ministry of
Internal Affairs between 2003 and
2012. He currently serves as a
Consultant of the Minister of National
Defense. He was elected as a Board
member in ASELSAN in 2013. Assoc.
Prof. Dr. Canpolat is also a member of
and a member of the Early Detection
and Management of Risks Committee.
Mr. Aydın was elected as the Chairman
of the Board of Directors of Small
Industrial Site-Building Cooperative
(OSTIM) in 1992. He was involved in
the establishment of OSTIM Organized
Industrial Zone Directorate, of which
he currently serves as the Chairman of
the Board of Directors. He was elected
as a Board member in ASELSAN in
2013. Mr. Aydın is also a member of the
Corporate Governance Committee and
a member of the Early Detection and
Management of Risks Committee.
8- Mustafa Murat ŞEKER
Board Member
Mr. Şeker began working at the
Undersecretariat for Defense Industries
in 1992. He has been serving as the
Head of the Department of Maritime
Vehicles since 2011. He was elected
2013. Mr. Şeker is also a member of the
Corporate Governance Committee and
a member of the Early Detection and
Management of Risks Committee.
17
9
9- Murat ÜÇÜNCÜ Board Member
Mr. Üçüncü completed his doctorate
in 1989. After retiring from the Turkish
Armed Forces in 2012, he was elected
2013. Mr. Üçüncü is also a member of
and a member of the Early Detection
and Management of Risks Committee.
18
Management
Corporate Governance
THE BOARD OF DIRECTORS HAS FOCUSED ON STRATEGIC AND
OPERATIONAL TOPICS, SUCH AS SUSTAINABLE GROWTH AND
INTERNATIONAL INVESTMENTS.
Corporate governance lies at the
heart of all of ASELSAN’s business
operations.
Full compliance with the law,
regulations and principles of
corporate governance represents
a source of strength in our
sustainable performance, constitutes
a framework of ethical and fair
competition while also serving as an
instrument to balance and protect our
stakeholders’ benefits.
first rating was announced as 8.77
out of 10. With this rating, it ranked
22nd among 42 companies and
received the second-best initial rating
in Turkey. ASELSAN’s rating was
revised up to 9.07 in 2013. ASELSAN
has been included in the Corporate
Governance Index of Borsa Istanbul
since it received its first corporate
governance rating.
The principles defining ASELSAN’s
understanding of corporate
governance are fairness,
transparency, responsibility and
accountability. The company
employs these principles in all of
its management operations and
decisions.
ASELSAN’s Board of Directors
ASELSAN’s management structure
is a single stage system based on
a Board of Directors selected by
the General Assembly. There are no
executive members on the Board
of Directors. Hence, ASELSAN has
separate roles for the Chairman of
the Board of Directors and Chief
Executive Officer (CEO). Three out of
the nine members of the Board are
independent members. All members
of ASELSAN’s Board of Directors
are responsible for the economic
performance of the company. The
executive responsibility for the social
and environmental performance, on
the other hand, belongs to the CEO.
ASELSAN annually prepares
“Corporate Governance Principles
Compliance Reports”. These reports
cover areas such as shareholder
rights (including minority rights) and
General Assembly Meetings; policies
regarding dividend distribution,
public disclosures, human
resources and ethics; relations
with stakeholders; the structure,
formation, principles of activity and
committees of the Board of Directors;
and risk management and internal
audit in detail. Corporate Governance
Principles Compliance Reports are
published on ASELSAN’s corporate
website www.aselsan.com and in its
annual reports.
ASELSAN’s corporate governance
rating rises to 9.07.
As a reflection of the importance
the Company attaches to corporate
governance, ASELSAN received its
first corporate governance rating in
2012. The rating was awarded by an
independent rating agency (SAHA
Corporate Governance and Credit
Rating Services, Inc.). ASELSAN’s
ASELSAN’s Management Structure
In order to conduct its duties and
responsibilities in a healthy manner,
ASELSAN’s Board of Directors
formed three committees:
Audit Committee
The committee is comprised of
three independent Board members.
Its main duties are to enable the
disclosure of financial data, pursuing
the operation and efficiency of the
accounting system, independent
audit, internal audit and internal
control system of ASELSAN. Internal
Audit and Assessment Department
reports directly to Audit Committee
and Board of Directors. The
committee assembles at least four
times a year.
Corporate Governance Committee
The Corporate Governance
committee is comprised of six
Board members and chaired by
an independent Board member.
It tables suggestions to the Board
of Directors regarding compliance
and recommended improvements
in accordance with the Corporate
Governance Principles. The
committee also oversees the
activities of Investor Relations
Department. The committee
assembles at least four times a year.
Early Detection and Management of
Risks Committee
Early Detection and Management
of Risks Committee was founded
with the participation of 6 Board
members, with the task of
determining operational, strategic,
financial and other risks and
managing them in compliance
with company’s corporate risk
taking profile. It is chaired by an
independent Board member. The
committee assembles at least six
times a year.
General principles for the foundation,
working, meeting and reporting of
all committees are determined by
the Board of Directors. Detailed
information regarding ASELSAN’s
corporate governance structure,
members of the Board of Directors,
and committees can be found at
www.aselsan.com.
Management
19
ASELSAN BİST 100
• First guidance for
capital market players
announced.
• Independent board
members elected.
Conference calls and
investor meetings began.
Corporate governance
rating received.
Analyst meeting held to
present 2012 operational
results.
First “non-deal roadshow”
organized.
First analyst meeting held.
ASELSAN achieved progress in corporate governance and financial
transparency areas in between the years 2011 and 2013.
December 2011
ASELSAN began to hold conferences
and meetings with existing and
potential investors on a regular basis.
March 2012
The company’s financial guidance
was disclosed to capital markets
participants for the first time.
Independent members were selected
to ASELSAN’s Board of Directors.
April 2012
The first analyst meeting was held.
October 2012
The first international road-show was
performed for investors.
December 2012
ASELSAN’s first corporate
governance rating was announced
at 8.77.
April 2013
An analyst meeting was held to
discuss the results of the company’s
operations in 2012.
December 2013
ASELSAN’s corporate governance
rating was revised to 9.07.
Committees at ASELSAN
There are three committees which were formed at ASELSAN by the Board of Directors in accordance in accordance with the
Capital Markets Board’s Principles of Corporate Governance:
Audit
Committee
Corporate
Governance Committee
Early Detection and Management
of Risks Committee
Halil SARIASLAN
Lamia Zeynep ONAY
(Committee Chairman)
Lamia Zeynep ONAY
Erhan AKPORAY
Erhan AKPORAY
(Committee Member)
(Committee Member)
Hasan CANPOLAT
Hasan CANPOLAT
Orhan AYDIN
Orhan AYDIN
Murat ÜÇÜNCÜ
Murat ÜÇÜNCÜ
(Committee Member)
(Committee Member)
(Committee Member)
(Committee Member)
For detailed information please
visit the Corporate Governance
section at www.aselsan.com.tr
(Committee Member)
(Committee Member)
(Committee Member)
(Committee Member)
(Committee Member)
(Committee Member)
20
Management
CEO’s Message
ASELSAN HAS CLIMBED UP IN THE GLOBAL
LEAGUE WITH FIRM STEPS.
Cengiz ERGENEMAN
CEO
We have taken firm steps towards our
target of becoming one the world’s 50
top defense companies.
As a result of the value that we have
attached to our high-qualified human
resources and R&D activities for 39
years, ASELSAN has ascended in
the global league towards its target
of becoming one of the world’s top
50 defense companies. ASELSAN
became the world’s largest 74th
company in term of defense turnover,
thanks to our understanding of longterm management and planning,
our determination to meet all of our
customers’ needs, especially those
of the Turkish Armed Forces, and
our efforts to ensure high customer
satisfaction.
Our R&D activities, which have
brought us to our present position,
happen to be the most important
assurance for us to become a global
company.
We develop unique products and
systems and offer them for the use of
our domestic and foreign customers
as a result of intensive R&D activities,
which we have been carried out with
our own resources or the financial
resources which we receive from our
customers through contracts. We
Management
plan to maintain the current trend of
our R&D approach in years to come
in order to ensure the continuity of
this success. The total volume of our
R&D projects (including contractual
R&D projects) totaled US$ 383 million
in 2013. This high volume will add
momentum to our company’s growth,
paving the way for unique products
and serial production in the years to
come.
We will bring our third facility into
operation in 2014.
Within the framework of our approach
of making the right investments at the
right time, which is one of the most
important and vital requirements for
our steady growth, we aim to bring
our new facility located in Gölbaşı,
Ankara into operation in the second
half of 2014, which will be the only
radar and electronic warfare center
in Turkey. With this facility, our
country will have one of the largest
production facilities of microwave
modules in Europe.
Extending our cooperation with
universities with each passing
year.
Universities are undoubtedly one
of ASELSAN’s most important
stakeholders in the growth of
the company. We have moved
our cooperation with universities
beyond simply recruiting university
graduates or supporting academic
work by granting scholarships.
Within the scope of our ongoing R&D
activities, we were collaborating
with 24 universities as of the end
of 2013. In the coming period, we
aim to concentrate further on such
collaborations and continue to be
an exemplary institution in terms of
cooperation between universities and
the industrial sector.
We are aware of the necessity that
our subcontractors should also grow
with us.
We believe that SMEs, which have
a significant place in the Turkish
economy, are indispensable for
ASELSAN’s sustainability. Within
the scope of our understanding
to disseminate our technological
know-how among the base, in
order to contribute to the sectoral
development of those SMEs which
work with us, we supported them
in 2013, from areas of occupational
training to technical consultancy,
and from providing various support
programs to offering access to
financial resources under favorable
conditions. Further strengthening the
cooperation with our subcontractors
in the development of their
technological infrastructure will
remain as one of our top priorities in
2014.
By deploying our technological
know-how in professional areas as
well, we aim to increase the value we
produce. In 2013, we have carried
out our efforts with more depth in
order to transfer the experience we
have gained from military projects to
professional areas. In this context,
we currently carry out R&D activities
in relation with a number of projects,
such as the Ulak project (4G), digital
tachograph development project, the
project to develop traction systems
for light rail vehicles and the national
radio communication network project.
Once these projects are completed,
we will begin manufacturing new
products that will be used in various
professional areas. We expect that
our efforts aimed at professional
areas will provide a significant
contribution to ASELSAN’s organic
growth rate.
21
ASELSAN: A Company That
Respects People and the
Environment
It is our top priority to maintain
sustainable growth due to our
responsibilities as a global company.
Fulfilling all of our commitments
to our stakeholders, ensuring our
employees’ health and safety,
producing value for the community
and protecting the environment
are always on top of our agenda.
To this end, we disclosed our first
Sustainability Report at the end of
2013. The report presents all of our
efforts from sustainable management
and activities related to development
and employment, environmental
management, climate change and
carbon management.
As we approach our 40th year of
operation, our aim is to become a
competitive company with superior
technology in the global arena.
While our shareholders and members
of our Board of Directors, as well as
our self-sacrificing employees who
have brought us to the present day
continue to fulfill their responsibilities,
they will also continue to produce
added value in ASELSAN’s 40th
year of operation for all of our
stakeholders, especially the business
partners who work with us and our
customers, who place their trust in
us.
Yours sincerely,
Cengiz ERGENEMAN
CEO
22
Management
Members of the Executive Board
1
2
3
4
5
1- Cengiz ERGENEMAN
2-Faik EKEN
4- Fuat AKÇAYÖZ
Mr. Ergeneman completed his
undergraduate and graduate
degrees at the Department of Electric/
Electronic Engineering in the Middle
East Technical University. He joined
ASELSAN as a production manager
in 1978. He was responsible for
the establishment of the Akyurt
Facilities as the Head of the MGEO
(Microelectronics, Guidance and
Electro-Optics) Division in 1990. Mr.
Ergeneman was later assigned as the
CEO of ASELSAN in 2006.
Mr. Eken completed his undergraduate
degree at the Department of Electric/
Electronic Engineering in the Michigan
Technological University in the USA
and his graduate degree at Tulane
University in the USA in 1985. He joined
ASELSAN as an electronic engineer at
the Digital Systems Division in 1986.
He was assigned as the Vice President
of ASELSAN and Communication and
Information Technologies Division CEO
in 2006.
Mr. Akçayöz completed his
undergraduate and graduate
degrees at the Department of Electric/
Electronic Engineering in the Middle
East Technical University. He joined
ASELSAN as an electrical engineer
in the Production Division in 1976. He
was assigned as the Vice President
of ASELSAN and Defense Systems
Technologies Division CEO in 2006.
CEO and Head of the Executive Board
Vice President, Communication and Information
Technologies Division CEO
3- Özcan KAHRAMANGİL
Vice President, Microelectronics, Guidance &
Electro-Optics Division CEO
Mr. Kahramangil completed his
undergraduate and graduate degrees
from the Department of Mechanical
Engineering at the Middle East
Technical University. He joined
ASELSAN as a mechanical engineer
in 1984 and began to serve in the
Production Preparation Division. He
was appointed as the Vice President
of ASELSAN and Microelectronics,
Guidance & Electro-Optics Division
CEO in 2006.
Vice President, Defense Systems Technologies
Division CEO
5- Ergun BORA
Vice President, Radar, Electronic Warfare and
Intelligence Systems Division CEO
Mr. Bora completed his undergraduate
and graduate degrees at the
Department of Electrical/Electronic
Engineering in the Middle East
ASELSAN as an electric engineer in
the Production Division in 1976. He
was appointed as the Vice President
of ASELSAN and Radar, Electronic
Warfare and Intelligence Systems
Division CEO in 2008.
Management
6
7
8
9
23
10
6- Ahmet DEMİR
7- Mustafa ERTÜRK
8- Afşin AKKERMAN
Vice President, CFO
Marketing Director
Procurement Director
Mr. Demir completed his
undergraduate and graduate degrees
at the Econometrics Department of
Uludağ University and went on to
complete a Ph.D. at the Econometrics
Department in Gazi University in 1997.
He was assigned as the Vice President
and CFO of ASELSAN in 2005.
Mr. Ertürk completed his undergraduate
degree at the Department of Public
Administration in the Middle East
ASELSAN as an administrative official
at the Business Planning Division
in 1991. He was appointed as a
Marketing Director in 2003.
Mr. Akkerman completed his
undergraduate degree at the
Department of Mechanical Engineering
at the Middle East Technical University.
He joined ASELSAN as a mechanical
engineer at the Production Planning
and Control Division in 1991. He was
appointed as the Procurement Director
in 2004.
9- Baki ŞENSOY
Strategy Management Director
10- Nihat IRKÖRÜCÜ
Mr. Şensoy completed his
undergraduate degree at the
Department of Electrical/Electronic
Engineering and MBA at the
Department of Business Administration
at the Middle East Technical
University. He joined ASELSAN as
a design engineer at the MGEO
(Microelectronics, Guidance and
Electro-Optics) Division in 1994.
He was appointed as the Strategy
Management Director in 2008.
Support Services Director and General Secretary
Mr. Irkörücü graduated from the Turkish
Military Academy in 1974 and the War
College in 1986. He was assigned
as the Support Services Director and
General Secretary of ASELSAN in
2005.
24
in 2013
Highlights in 2013
KAZAKHSTAN ASELSAN ENGINEERING (KAE) COMMANDS A
PRODUCTION CAPACITY OF 3,000 NIGHT VISION DEVICES, 1,200
THERMAL SIGHTS AND 3,000 DAY VISION DEVICES PER YEAR.
Kazakhstan ASELSAN Engineering
(KAE) was established in February
2011 to manufacture electro-optical
and electronic devices and systems
in order to meet the needs of military
and civilian institutions in Kazakhstan
as well as other countries in the
region. The company will also be
responsible for the integration of
these systems into any platform. The
facility has a production capacity
of 3,000 night vision devices, 1,200
thermal sights and 3,000 day vision
devices per year.
The facility currently manufactures
9 types of electro-optical products
including thermal cameras and
telescopes. The facility operates
in an enclosed area of 8,500 m2,
expandable to 25,000 m2. A total of
50 individuals work at the facility,
most of whom are Kazakh citizens.
The facility possesses production
and testing lines for night vision and
thermal vision devices, a laboratory
for quantifying environmental
conditions, a measurement and
calibration laboratory, a material
storage and packaging line, a
production and testing line for
electronic cards.
in 2013
25
IGG ASELSAN INTEGRATED SYSTEMS LLC (IAIS) WAS FOUNDED IN
ABU DHABI, THE CAPITAL CITY OF THE UNITED ARAB EMIRATES, IN
2011.
IGG ASELSAN Integrated Systems
LLC (IAIS) was founded in Abu
Dhabi, the capital city of the
United Arab Emirates, in 2011. The
International Golden Group (United
Arab Emirates) holds 51% of the
shares in the company compared
to a 49% share held by ASELSAN
Elektronik Sanayi ve Ticaret A.Ş.
(Turkey). The activities of IAIS include
the production and integration (to
platforms) of high-tech products
(systems and units), which will
be sold by ASELSAN to UAE and
countries of the Gulf Cooperation
Council (GCC). IAIS will also
provide after sales support for these
products. The company operates in
an indoor area 900 m2 and outdoor
area of 2,000 m2 in its facility in the
ICAD Region in Abu Dhabi.
26
in 2013
Highlights in 2013
THE ASELSAN MIDDLE EAST FACILITY (AME) WAS FOUNDED IN 2012
IN AMMAN, THE CAPITAL OF JORDAN, TO PRODUCE NIGHT VISION
DEVICES.
ASELSAN Middle East (AME) was
founded in August 2012 to produce
electro-optical and electronic devices
and systems to meet the needs of
military and civilian institutions in
Jordan and in other countries in the
Middle East and Northern Africa.
The company is also involved in joint
development and modernization
projects as well as the integration of
these systems into various platforms.
The facility has a production
capacity of 5,000 units of night
vision devices per year. The
facility which currently operates
in an indoor area of 2,000 m2 and
an outdoor area of 2,300 m2 also
manufactures Night Vision Weapon
Binoculars. The facility possesses
production and testing lines for
night vision devices, a laboratory
for quantifying environmental
conditions, a measurement and
calibration laboratory, and a material
storage and packaging line. A total
of 15 people - who are all Jordanian
citizens - are working at the facility
that cost nearly US$ 4.5 million.
The company aims to increase the
number of its employees to 35 by the
end of 2014. Since its establishment,
AME has signed a total of US$ 23
million in contracts for the sale of
various night vision and thermal
systems.
in 2013
27
CONSTRUCTION WORK NEAR COMPLETION IN ASELSAN’S GÖLBAŞI
FACILITY, WHERE THE RADAR, ELECTRONIC WARFARE AND
INTELLIGENCE SYSTEMS (REHIS) GROUP WILL OPERATE.
ASELSAN invested nearly US$ 200
million in its Radar and Electronic
Warfare Systems Facility in Gölbaşı.
When the facility in Gölbaşı becomes
operational, all radar production
activities currently undertaken at
ASELSAN’s Macunköy facilities will be
transferred to the new facility.
Approved by the Ministry of Science,
Industry and Technology, the R&D
Center under ASELSAN’s Radar,
Electronic Warfare and Intelligence
Systems (REHIS) Group will carry
out its activities at this facility. More
than 1,000 engineers and technical
personnel will be employed at the
facility. The facility will be the center
of ASELSAN’s design, production,
testing and supporting activities for
all kinds of radars and electronic
warfare systems, particularly longrange air defense radars required by
the Turkish Armed Forces, as well as
antenna, microwave components/
modules and software used in these
radars and systems.
The following subsections have been
established in the new facility in
order to improve ASELSAN’s existing
design/production capabilities in the
area of radars and electronic warfare:
integration areas for new radars
and electronic warfare systems,
microwave component/module
design and production facilities,
special quantification laboratories
and precision mechanical production
facilities.
28
in 2013
Highlights in 2013
AS ONE OF THE LEADING GLOBAL ACTORS IN THE DEFENSE
INDUSTRY, ASELSAN TAKES JUSTIFIED PRIDE IN ITS MANY
ACHIEVEMENTS IN 2013.
Position in the
global league
Defense News Top 100
ASELSAN reaches 74th position in
the global league.
ASELSAN, the leading corporation of
the Turkish Defense Industry, continues
to rise in the list of the world’s largest
industrial companies. As one of the top
100 companies in the global defense
industry according to the list (Defense
News Top 100) prepared by the magazine,
Defense News, a US-based military
publisher, ASELSAN reached 74th position.
Published annually based on companies’
defense sales in the previous year, the
“Defense News Top 100” is considered to
be the world’s most prestigious defense
industry list. Companies present in the list
are considered to be promising defense
companies.
Agreements
signed for
local 4G base
stations
A contract was signed by and between ASELSAN
and the Ministry of Transportation, Maritime Affairs
and Communications for the 4th Generation (4G/LTE)
Mobile Technology Development (ULAK) Project.
Original base stations that will be manufactured by
solely using national resources in the ULAK Project,
which will be undertaken with cooperation between
ASELSAN, NETAŞ and ARGELA, a subsidiary of Türk
Telekom. Through the ULAK Project, which will be
completed in 2016, 4G connection facilities will be
assigned for the security and emergent communication
services provided by mobile operators and the public.
New Generation
Thermal Cameras
Developed by ASELSAN, New Generation Thermal
Cameras were delivered to the Turkish Land
Forces Command. The project was financed by
the European Union, which provided 75% of the
required funding, while the remaining 25% was
covered by the central budget.
in 2013
29
Air
Defense
Missile
System
The first firing tests were
successfully performed within
the scope of the Low- and
Mid-Altitude Air Defense Missile
System Projects (HİSAR)
undertaken by ASELSAN as the
primary contractor.
Acoustic Countermeasure
System
ASELSAN successfully completed the development
and delivery of Acoustic Countermeasure Decoys
and Jammers that can be launched from PREVEZE
and GÜR Class Submarines.
Within the scope of the “Development of Acoustic Jamming and
Deception Systems for Submarines” project, ASELSAN is currently
working on the development of indigenous “Soft-Kill” Torpedo
Countermeasure Systems by means of national resources. These
modern systems have recently started to be used in navies around
the world on submarines torpedo countermeasure warfare purposes.
MILKAR-3A2
VHF/UHF
Jammer Project
Within the scope of the VHF/UHF Jammer
Procurement Contract signed by and between
ASELSAN and the Undersecretariat for
Defense Industries, the company successfully
completed the acceptance, testing and
examination procedure for the “VHF/UFH
Jammer Prototype”.
ÇAFRAD: Developed
by ASELSAN
A Giant in IDEF 2013
ASELSAN took part in the 11th International Defense
Industry Fair with the largest participation. The company
exhibited more than 100 devices/systems to its visitors in
an area of more than 2,000 m2.
A contract worth TL 200 million was
signed by and between ASELSAN and the
Undersecretariat for Defense Industries
for the Multi-Purpose Phased Array Radar
Project Conceptual Phase (ÇAFRAD
Phase-1 Project). The ÇAFRAD System,
which will be the Main Sensor for naval air
defense, will be developed by ASELSAN
with national resources in line with the
needs of the Turkish Armed Forces.
30
in 2013
R&D Activities in 2013
WE ALLOCATED US$ 383 MILLION IN RESOURCES TO OUR R&D
PROJECTS IN 2013.
Acting upon its vision to become
one of the world’s top 50 defense
industry companies, ASELSAN’s
basic principle is to gain the basic
talents required to produce hightech products. To this end, ASELSAN
has placed great importance on
technological management since its
foundation. In order to systematize
its activities in the management
of technology, ASELSAN set up
the Technology Supreme Board
in 2014, which is comprised of
ASELSAN executives who are
experts in engineering, as well as
ASELSAN employees who work
in integration with the company’s
strategy management system.
The board undertakes evaluations
on a regular basis and prepares
technological target plans in line
with projections. When drawing up
projections, the board takes into
account the company’s existing
technologies, developments in the
Turkish and global defense industries
and technological advances. In the
light of the information garnered
through these efforts, the board takes
steps to acquire such technologies
which are not already possessed
by the company and cannot be
provided domestically. The company
strategically keeps a view of the
critical technologies which it seeks
to possess. In this context, the
company conducts various R&D
projects and undertakes all required
investments. The R&D projects
financed through ASELSAN’s own
resources provide a significant
contribution to the company’s longterm growth targets.
As the leading Turkish company
in the area of defense electronics,
ASELSAN develops high-tech
solutions in all fields of activity.
According to the most recent
(2013) data provided by the Turkish
Statistical Institute, Turkey’s R&D
expenditures totaled US$ 7.3
billion, 45% of which come from
the industrial sector, with ASELSAN
accounting for nearly 10% of the
R&D expenditure in the industry
sector. The R&D expenditures in the
defense industry make up 24% of the
total R&D expenditures of the Turkish
industrial sector.
Having generated more than US$ 1
billion in turnover in 2013, ASELSAN
allocated US$ 383 million in
resources to R&D projects. ASELSAN
accounts for 43% of the R&D
investments in the defense industry.
With its customer-oriented approach
and its personnel who direct the
technology, ASELSAN attaches
tremendous importance to R&D
activities. Besides the R&D activities
that it performs in accordance with
its contractual liabilities, ASELSAN
also allocates about 6% of its annual
turnover to R&D activities, which
are financed from the company’s
shareholders’ equity.
This ratio, which is considerably
higher than Turkey’s average, is
supported by ASELSAN’s average
annual growth rate of 15% in recent
years. As a result, the company’s
R&D expenditures surged to US$ 383
million in 2013.
70% of the investments made in 2013
aimed to bring new technologies
to the company. As a result,
ASELSAN is on its way to becoming
a company with technological depth
that extends to the level of critical
materials/technologies. ASELSAN’s
R&D expenditures have more than
doubled from the US$ 160 million
in 2009 to US$ 383 million in 2013.
Similarly, the total number of people
employed in the company’s R&D
centers climbed from 1,469 in 2009
to their current level of 2,293.
The total number of researchers
holding a Ph.D. employed in
ASELSAN’s R&D Centers increased
from 47 to 115 in the same period,
and the number of researchers with
a post graduate degree increased
from 647 to 1,040. The increasing
number of personnel working at
ASELSAN’s R&D Centers (a total
of 1,638 employees with a Ph.D. or
post graduate degree) is a strong
justification of the US$4 million which
we allocated to provide more than
100 hours of training in total to our
employees in 2013.
in 2013
Laser Warning Receiver System
31
32
in 2013
Awards and Achievements in 2013
ASELSAN TAKES JUSTIFIED PRIDE IN ITS ACHIEVEMENTS IN 2013, A
YEAR FULL OF MANY ACHIEVEMENTS.
LEADERSHIP IN TECHNOLOGY
DEVELOPMENT AWARD
ASELSAN received the “Leadership
in Technology Development” Award
in the Innovation Week held by the
Turkish Exporters’ Assembly.
WINNING AWARD IN FIXED
TELECOMMUNICATIONS CATEGORY
AT TECHNOLOGY AWARDS
ASELSAN was deemed worthy of
award in the Fixed Telecommunication
category at the Turkcell Technology
Summit.
FASTEST GROWING COMPANY
AMONG BIG STARS
ASELSAN ranked 1st in the Deloitte
Technology Fast50 Turkey 2013
Big Stars, a program conducted by
Deloitte to determine Turkey’s fastest
growing technology companies.
DEFENSE INDUSTRY AWARD
ASELSAN was handed the Defense
TESID
(Turkish
Electronic Industrialists Association)
INNOVATIVENESS&CREATIVITY
AWARD
R&D AND INNOVATION AWARD
At the TESID Innovativeness &
Creativity Awards, ASELSAN was
deemed worthy of the Innovativeness
Product Award 2013 in the category
of large companies with its product,
Mortar Acquisition Radar.
Industry Second Prize 2013 by
the Undersecretariat for Defense
Industries.
In the 1st Technology Development
Parks Summit jointly organized by
the Ministry of Science, Industry and
Technology and the Association of
Turkish Technology Parks, ASELSAN
was deemed worthy of award in
the category of large companies
because of its achievements in the
area of R&D and innovation with its
“Software Define Radio Project”.
SUPER
BRAND
ASELSAN
AWARD TO ASELSAN BY THE
KOREAN GOVERNMENT
Granted by the South Korean
Government to the most innovative and
commercially viable projects under the
international EUREKA program, “The
Most Innovative and Commercially
Viable Project” was awarded to the
ASELSAN’s RECONSURVE project in
2013.
According
to the
evaluations
undertaken
in 2012
by Superbrands, an international
independent authority in brand
management which operates in more
than 87 countries, ASELSAN was
found to be the only defense industry
corporation among “Turkey’s Super
Brands”.
ASELSAN ON THE EXPORT
HONORS LIST IN 2012
Granted by the TEA Honors Award
in Exports by the Turkish Exporters’
Association (TEA), ASELSAN
also received the Sectoral Leader
award in its category at the
“Electric - Electronic Industry Export
Achievement Awards 2012”.
in 2013
33
MOST INNOVATIVE SAP PROJECT
ASELSAN’s Customer Complaint
and Fault Notification Management
Practice, which has a unique
design that is distinct from similar
practices in the world, received the
“Most Innovative SAP Project” at the
event, “SAP Forum Ankara 2013”,
organized by SAP Turkey.
HONORS AWARD IN EXPORTS
ASELSAN was granted the Honors
Award in Sectoral Exports at the Export
Achievement Awards organized by
Istanbul Association of ElectricsElectronics Machinery and IT (TET).
WINNING AWARD IN EXPORTS
ASELSAN was granted the Winning
Award in Exports in the ElectricsElectronics Sector in the category of
other Durable Consumption Goods
at the Export Achievement Awards
organized by Istanbul Association of
Electrics-Electronics Machinery and
IT (TET).
CMMI 3 CERTIFICATE
TO THE CIT
(COMMUNICATION
AND INFORMATION
TECHNOLOGIES)
DEPARTMENT
The CIT (Communication and
Information Technologies) Division
successfully completed the CMMI v1.3
inspection, “System Development and
Integration, and Product Development”
and was rated “CMMI-DEV v1.3,
Maturity Level 3”.
FIRST IN TURKEY IN OPTIC
COATING PROCESS
ASELSAN’s MGEO (Microelectronic
Guidance and Electro-Optics)
Division made it to the approved
list of companies with NADCAP
certificate, becoming the first and
only certified company in Turkey
and the third certified company in
the world with respect to the optic
coating process.
NATO SCIENCE AND
TECHNOLOGY ORGANIZATION
SCIENTIFIC ACHIEVEMENT AWARD
Of our employees, Serhat Erdemir,
Aykut Arıkan and Toygar Birinci were
granted the Scientific Achievement
Award 2013 by the NATO Science
and Technology Organization (STO)
in recognition of their contributions
to the NATO Work Group, “SCI190 Electronic Countermeasures
to Radar with High-Resolution and
Extended Coherent Processing”,
which they are members of.
TSE (TURKISH STANDARDS INSTITUTION) QUALITY AWARD
Corporations and institutions which perform successful activities in the areas
of standardization and quality by adopting a sustainable quality understanding
were granted “TSE Quality Awards” in a ceremony held by the Turkish
Standards Institution on March 15th World Consumers Day. Because its quality
systems and products have been certified by TSE since 1994, ASELSAN was
deemed worthy of the Silver Quality Award given to the companies which had
been established for 15-20 years.
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Fields of Activity
FIELDS OF ACTIVITY
•MILITARY COMMUNICATION SYSTEMS
•PUBLIC SAFETY COMMUNICATION SYSTEMS
•SATELLITE, AVIONIC AND NAVAL COMMUNICATION SYSTEMS
•ENCRYPTION AND INFORMATION SECURITY SYSTEMS
•AVIONIC SYSTEMS
•ELECTRO-OPTIC SYSTEMS
•NAVAL SYSTEMS
•AIR AND MISSILE DEFENSE SYSTEMS
Fields of Activity
•COMMAND, CONTROL, COMMUNICATIONS AND COMPUTER
SYSTEMS
•UNMANNED SYSTEMS
•COASTAL AND BORDER SECURıTY SYSTEMS
•WEAPON SYSTEMS
•RADAR SYSTEMS
•ELECTRONIC WARFARE SYSTEMS
•INTELLIGENT TRANSPORTATION SYSTEMS
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36
Cooperation and
Determination
Fields of Activity
Fields of Activity
ASELSAN’s journey, which started with the manufacture of
radio systems, continues with expanding fields of activity.
ASELSAN has proven itself by developing the world’s only
software defined radio system to carry out all functions defined
by NATO. Recently developed products have placed ASELSAN
as one of the world’s top five companies in the area of radio
communication systems.
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Fields of Activity
Military Communication Systems
IN THE MILITARY COMMUNICATION AREA, ASELSAN SUCCESSFULLY
OFFERS PRODUCTS, SYSTEMS AND SOLUTIONS WITH HIGH ADDED
VALUE NOT ONLY TO THE TURKISH ARMED FORCES BUT ALSO TO ITS
INTERNATIONAL CUSTOMERS.
Software Defined Radio
Fields of Activity
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Tactical Field Communication Systems (TASMUS)
Software Defined VHF/UHF Radio
Family
Software Defined Handheld, Portable
and Vehicle Radio Systems were
designed and developed to meet
theincreasing demand for seamless
voice and data communication in
the tactical arena and to provide
protection against electronic warfare
threats. Radios’ software configurable
architecture and features such
as frequency hopping, spread
spectrum and digital encryption
provide high survivability against the
most challenging electronic warfare
threats.
To ensure seamless connectivity
in the tactical arena, these radios
support wide band and narrow band
waveforms enabling command
control and higher data transmission
rates, while providing legacy
waveforms for communication with
previous generation radio systems
(9600, SK2, Air-Ground). ASELSAN
produces and exports the VHF/UHF
Handheld, Portable and Vehicular
Software Defined Radio Systems.
In addition to its partnership and
transfer of technology (TOT) activities
in Pakistan, ASELSAN will start
local production activities in Saudi
Arabia in 2015 through transfer of
technology.
In order to meet the needs for
new generation command control
systems, ASELSAN undertook efforts
to develop a new narrowband adhoc networking waveform, which
would operate on ASELSAN’s current
VHF/UHF Software Defined Radio
platforms using 25 KHz channel
bandwidth. This new waveform
supports IP multi-hop, multicast
and simultaneous voice and data.
ASELSAN has already fielded this
waveform within the framework of the
ADOP- 2000 Project.
New Generation Tactical Field
Communication Systems:
The TASMUS and TASMUS-G
Systems, which are the most
important application of the
Network Centric Warfare Capability
in the inventory of the Turkish
Armed Forces, were successfully
deployed in various military
exercises and missions in 2013. In
terms of first export of the Tactical
Field Communication Systems,
a communication system whose
backbone is formed by TASMUS
Systems was delivered to the
Bangladeshi Armed Forces.
Software Defined HF Radio Family
ASELSAN HF Radio Family comprises
of Portable and Vehicle/Stationery
Radio Systems using the latest
digital communication and ECCM
techniques (such as frequency
hopping, encryption) in the 2-30
MHz HF band. Communication
beyond the horizon is performed
with the most up-to-date digital HF
technologies with advanced features,
such as digital encoding, automatic
channel selection and automatic link
establishment, as defined by NATO
STANAGs. ASELSAN started full
scale serial production and delivery
of HF Portable and Vehicle/Stationery
Radios in 2013.
ASELSAN has completed the
development and is currently
producing 150W, 400W and 1,000W
HF Naval Configurations and VLF/
HF Receivers, which are to be used
by surface and submarine type of
platforms of the Navy and the Coast
Guard Command. ASELSAN has also
completed the design and began the
production of HF Airborne Radios.
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Fields of Activity
Public Safety Communication Systems
ASELSAN’S SOLUTIONS IN THIS AREA SATISFY THE DIGITAL RADIO
COMMUNICATION NEEDS OF DIFFERENT USER GROUPS UNDER
NORMAL, CRISIS OR DISASTER CONDITIONS.
Urbanitas admodum
habemus corpora
his in. Ad ius
Gendarmerie
Integrated
Communication
and Intelligence Systems (JEMUS)
consul conceptam reformidans.
Fields of Activity
4th Generation (4G/LTE)
Communication System
Development (ULAK) Project
ASELSAN signed a contract with
Industries for the Development of 4th
Generation (4G/LTE) Communication
Systems. Within the scope of the
design and development of 4th
generation communication systems,
such as Commercial and Public
Safety LTE Base Stations, LTE Mobile
Terminal Security Software, TETRA
Base Stations and LTE-Based Military
Communication Systems, ASELSAN
carried out efforts to determine system
requirements. Thanks to its efforts
aimed at serial production, ASELSAN
will manufacture a prototype of the
LTE Macro-cell Base Station in this
project. With the prototype, ASELSAN
aims to meet the needs of not only
mobile operators, but also for all
military and professional institutions
that require high-speed, uninterrupted
and secure information exchange.
Moreover, thanks to the efforts of
use of LTE in the tactical field, the
company will build the infrastructure
for OFDM-based tactical systems that
may be developed in the future.
Gendarmerie Integrated
Communication and Intelligence
Systems (JEMUS)
ASELSAN continues the nationwide
installation of the Gendarmerie
Integrated Communication and
Intelligence Systems (JEMUS),
which accelerate coordination in the
Gendarmerie General Command’s
units and headquarters throughout
Turkey by enabling rapid and timely
access to information and which
allows safety and secure services to
be rapidly provided.
services (such as Ambulance
Service, Fire Brigade, Police ,
Gendarmerie, etc.); answering calls
through call taking applications;
recording calls; address search
through map applications; automatic
identification of citizens’ addresses;
mapping location of incoming calls;
tracking of mobile units; voice/data
communication between the Call
Center and sub-units (ambulances,
mobile units, police stations, etc.) of
organizations.
In the second phase of the project,
emergency call management systems
were delivered and put into use in
10 provinces in 2013. Deployment
of the project throughout Turkey will
facilitate all emergency numbers used
in our country to be combined in a
single number and enable different
institutions such as ambulance
service, fire brigade, police stations
and the Gendarmerie to work in
coordination under a single roof and
provide the necessary assistance in a
rapid and effective manner.
Secure Cellular Communication
System (EHHAS)
Within the scope of the Secure
Cellular Communication System
(EHHAS) contract signed in 2009 to
cover secure radio communication
needs of the Turkish General Staff,
ASELSAN installed the infrastructure
of base stations located in Istanbul,
Ankara and Izmir and delivered the
systems in 2013. Also, within the same
year, additional equipment has been
delivered to meet the needs of the
Turkish Armed Forces.
Within the scope of the JEMUS
project, the Company began to
install radio systems in 2005 and
had already installed these systems
in 40 cities as of the end of 2013. In
2014, ASELSAN plans to continue
to improve these systems in line
with the Gendarmerie’s needs and
expectations and to broaden their use
throughout Turkey by entering new
contracts.
ATLAS Radios with Digital Mapping
Function
Designed in 2013, ATLAS Handheld
Radios are the first radios, among
other radios used in public safety, to
have the digital mapping application,
as well as multi-tasking and navigation
features which run on the Linux-based
open platform. ATLAS Handheld
Radios are able to instantly show the
target location of the place where the
user is aiming to reach as well as the
location information of teammates on
a digital map.
Computer Aided Dispatch and
Management System for 112
Emergency Assistance
Designed by ASELSAN, the system
provides advanced services such
as: call taking and directing calls to
the dispatchers of the emergency
In 2013 ASELSAN completed the
design of the ATLAS Vehicle Radio,
the second product in the ATLAS
series of radios, which are the most
sophisticated solution in meeting the
communication needs of different
institutions in joint operations. In
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addition to the applications performed
by handheld radios, the ATLAS Vehicle
Radio may easily perform messaging
and data query functions through the
new tablet control head.
Encrypted Digital Radio System
Within the scope of the contract
signed with Turkish National Police
(TNP) the analogue communication
systems of TNP are being replaced
with ASELSAN’s Digital Mobile Radios
(DMR), which are encrypted digital
radios designed and produced by
the Company. In accordance with the
contract, as well as the delivery of
terminals in 2013 and 2014, ASELSAN
aims to install broadband coverage
and trunk infrastructure in some cities.
The important advantages brought by
this technology include a quadrupling
in the capacity of the existing licensed
radio channels, high voice quality
and easy integration of GPS and data
applications into the system. Digital
communication systems, which are
installed by ASELSAN in the “Local
Area” mode or the ‘Wide Area’ mode,
are able to perform functions above
the defined standards to meet the
special customer demands.
Export of APCO and Encrypted
Digital Radio Systems
As an ongoing activity since the
end of 2006, ASELSAN continued
to sell APCO Digital Radios to the
United States of America in 2013.
The Company expects to increase
its sales in the coming years through
its efforts to develop new products
in the same category. The Pakistani
Armed Forces have been effectively
using ASELSAN’s Encrypted Digital
Radio Systems since 2007, and
the amount of radios delivered has
considerably increased in 2013. Within
the scope of the technology transfer
agreement signed with the Pakistan
National Radio Telecommunications
company (NRTC) in December 2011
for the production of Digital Handheld
and Vehicle Radios - designed by
ASELSAN - in Pakistan, the Company
stepped up its deliveries of the
production materials in 2013.
In early 2013, a contract was signed
between the Saudi Arabian Ministry
of Defense and ASELSAN for the
procurement of Encrypted Digital
Radio Systems and ASELSAN has
delivered the systems in line with the
agreement.
42
Fields of Activity
Fields of Activity
X-Band Satellite Communication System
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Fields of Activity
Satellite, Avionic and Naval Communication
Systems
ASELSAN DEVELOPS AND OFFERS SATELLITE COMMUNICATION
SYSTEMS TO ENABLE SECURE AND UNINTERRUPTED
COMMUNICATION BETWEEN COMMAND CONTROL CENTERS AND
UNITS IN THE FIELD.
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ASELSAN Authentic Integrated Naval Communication Systems
Fields of Activity
X-Band Satellite Communication System
Satellite Communication Systems
Uninterrupted and secure
communication, mobility and the
ability to communicate over the
longest distances and under the most
challenging geographical conditions
can be considered as most crucial
communication features in today’s
conditions. Within this scope,
satellite communication systems are
of paramount importance, offering
uninterrupted voice, video and data
communication, which is a basic
condition during the operations
of armed forces on the tactical
field. Acting on this requirement,
ASELSAN develops and offers
satellite communication systems to
enable secure and uninterrupted
communication between the
command control centers and the
units on the tactical field.
Turkish MOD for the New Generation
X-Band Satellite Communication
System (TUMSIS) Project. According
to the contact, ASELSAN will develop
an X-Band Satellite Transponder
Payload and various types of X-Band
Terminals. ASELSAN completed
the preliminary design work for
the New Type X-Band Manpack
Terminal, which is an indigenous
product of ASELSAN. The company
also completed the acceptance
tests for the units designed by the
subcontractor TÜBİTAK-UZAY (Space
Technologies Research Institute) as
the subcontractor.
ASELSAN continued design activities
for the New Type Submarine X-Band
Satellite Communication Terminals.
Moreover, following the delivery of
the first MILGEM X-Band Satellite
Communication Terminal integrated
to TCG-HEYBELİADA, ASELSAN
delivered the X-Band Satellite
Communication Terminal integrated to
TCG-BÜYÜKADA to the Naval Forces
Command in 2013.
Related with the On-Board
Processing EHF (Extremely High
Frequency) Satellite Transponder
and Testbed Development Project
(which aims to meet secure satellite
communication requirement at high
frequencies of TAF and is a R&D
Project, supported by the Scientific
and Technological Research Council
of Turkey (TÜBİTAK)), ASELSAN
successfully completed the
equipment acceptance tests and
started system acceptance tests.
Naval Communication Systems
ASELSAN launched pre-design
efforts within the scope of the LST
Integrated Communication System
Project. The company also carried
out detailed design, materials
procurement, production and
testing activities for the New Type
Patrol Boat, MOSHIP/KURYED, the
Turkmenistan SERHED Boat and
New Type Submarine Integrated
Communication Systems. Moreover,
the company successfully completed
the acceptance tests for Integrated
Communication Systems of 1
MILGEM-2 Corvette, 4 New Type
Patrol Boats and 4 SERHED Boats
and the pre-design review of the New
Type Submarine Communication
System Project. In addition, ASELSAN
tabled offers for the MILGEM-3-4,
LPD, TT Fast Patrol Boat, AMDEG,
LDG and YSAT Integrated
Communication Systems, as well as a
number of export projects.
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RF Data Link System
Within the scope of the Project of
Development of RF Data Link Units
for Long-Range Antitank Missiles
(UMTAS), the company completed
the production line qualification
work and began to negotiate with
ROKETSAN for the serial production
agreement. The company also
successfully completed the design
verification tests for the Project of
Development of RF Data Link Units
for Mid-Range Antitank Missiles
(OMTAS). Moreover, ASELSAN
signed the necessary contracts for
the Project of Development of RF
Data Link Units for Low- and MidAltitude Air Defense Missile System.
The company successfully completed
the system design phase for the
Low-Altitude Air Defense Missile
System, but work continues on the
system design of the Mid-Altitude Air
Defense Missile System.
Identification Systems
Designed within the scope of
the National IFF Mod 5/S Project,
ASELSAN successfully completed
the flight acceptance tests in 2013
Furthermore work continues on the
contract-related negotiations and
advance work is carried on for the
serial production of National IFF
Transponders and Short- and MidRange IFF Interrogators.
Moreover, the company maintained
its efforts to determine technical
requirements for the Mode 5 LongRange IFF Interrogators.
Within the scope of the Battlefield
IFF Systems (MUHTAR) Project,
ASELSAN successfully completed
the critical design phase in February
2013 and the work continues on the
development of desktop prototypes.
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Fields of Activity
Encryption and Information Security Systems
ASELSAN UNDERTAKES PROJECT DESIGN AND DEVELOPMENT
ACTIVITIES FOR CRYPTOGRAPHIC AND INFORMATION SECURITY
PRODUCTS, PARTICULARLY COMMUNICATION SYSTEMS AND
INFORMATION TECHNOLOGIES.
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2080 ASELSAN Key Management System
Fields of Activity
47
Ad ius consul conceptam reformidans.
Virtual Air Gap System
Virtual Air Gap System
ASELSAN designed and produced
the Virtual Air Gap System in order
to resolve the significant problem
of securely connecting computer
networks of different security levels.
ASELSAN launched efforts for the
deployment of its Virtual Air Gap
System - which holds the Joint
Criteria approval at the EAL4+
(ALC_FLR.2, AVA_VAN.5) level - to
establish communication between the
Gendarmerie General Command and
UYAP (National Judiciary Informatics
System) and to connect TAF’s
network to other public institutions.
ASELSAN is in the process of
carrying out the black- and gray-box
clearance analyses and leakage
tests through the SAHAB system,
which was established in the General
Staff’s MEBS (Communication and
Electronic Information Systems)
Cyber Defense Command.
New Generation IP Encryption
Device
ASELSAN undertook efforts to
develop a new generation, high
performance IP encryption device
supporting 1 Gigabit/s interface, in
order to encrypt IP communication
over Local Area and Wide Area
Networks. Besides adding mobile
IP support, which allows the device
to be used in changing IP topology,
and adding the QoS messaging
feature which is used to maintain the
quality of the IP services, ASELSAN
conducted various design activities
to add Multicast and the support of
dynamic reconnaissance protocols
(TED) to the device.
2110 Encrypted Mobile Phone
In order to encrypt voice and data
communication undertaken through
GSM communication networks,
ASELSAN launched design work
to ensure secure communications
between 2110 KCT Encrypted Cell
Phones (developed with national
resources) through the Thuraya
Satellite Network.
The company also continued design
work for the touch screen New
Generation Encrypted Mobile Phone
with the smart phone architectural
structure, which provides Secure
Voice and Data Communication
through 3G mobile communication
networks.
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Innovation and
Passion
Fields of Activity
Fields of Activity
Having started its operations in the early 1990s with microelectronic production, ASELSAN soon became Turkey’s electrooptics center. Taking important strides in R&D activities, the
company now operates in the fields of avionics, fight management,
navigation and guidance systems and other various areas of
defense electronics.
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50
Fields of Activity
Avionic Systems
ASELSAN PROVIDES SYSTEM LEVEL SOLUTIONS WHICH USE
NATIONAL RESOURCES TO THE MAXIMUM EXTENT. ASELSAN ALSO
DEVELOPS RADARS, COMMAND CONTROL, FIRE CONTROL AND
COMMUNICATION SUBSYSTEMS, WHICH ARE THE BASIC ELEMENTS
OF LOW- AND MID-ALTITUDE GUN OR MISSILE-BASED AIR DEFENSE
SYSTEMS.
T129 ATAK Avionic and Weapon System
Integration
Fields of Activity
51
Targeting Pod for Fighter Aircrafts (ASELPOD)
Rotary-Wing Systems
Under ATAK Program, ASELSAN
continues the delivery of helicopter
kits and the serial production of the
following systems: Avionic Central
Control Computer (ACCC), Airborne
Inertial Navigation and Localization
System (ANS-510), Internal
Communication System (DHS-101),
Multifunction Display Unit (VMFD-68),
Keyboard Display Unit (KDU-44),
Data Load Unit (VYB-4CF), Advanced
Targeting System (ASELFLIR-300T),
AVCI Helmet Integrated and Cueing
System, Digital Moving Map, Weapon
and Gun Interface Units, Pilot/Copilot
Mission Grips, Armament Control
Panel, Avionic Activation and Display
Control Panel and Master Warning
Caution Panel. ASELSAN currently
continues to offer technical support
within the scope of ground and flight
tests.
AVCI Helmet Integrated and Cueing
System, includes the world’s first
hybrid (optic-inertial) head tracker
integrated to a helicopter platform
and provides automatic movement
of targeting and weapon systems
to the pilot’s line of sight with high
performance of tracking sensitivity.
Within the scope of the Helicopter
Electronic Warfare Suite (HEWS)
Project, ASELSAN has been
continuing the serial production of
the Laser Warning Receiver System
(LWRS), enabling the strong detection
capability in the far IR band, high
resolution threat angle measurement,
high sensitivity detection and a low
incidence of false alarms.
Regarding Avionic Modernization
of Gendarmerie Helicopters Project
(JHM), ASELSAN completed the
prototype phase of the avionic
modernization of S-70 Sikorsky
Helicopters, AB-205 Helicopters and
Mi-17 Helicopters performing serial
integration as well.
Fixed-Wing Systems
ASELPOD Program covers the
development, prototype production
and also the integration and
certification of advanced targeting
pod to F-16 and F-4E/2020 aircrafts.
ASELSAN successfully completed the
External Load Certifications tests for
the F-4E/2020 A7C aircraft and has
started the tests for F-16 aircraft.
The Turkish Airborne Reconnaissance
Program (TARP) which covers the
Procurement and Integration of EO/
IR and SAR GMTI Reconnaissance
Systems, ASELSAN continued the
delivery of 4 EO/IR (Electro-optic/
Infrared) Reconnaissance Pods, 3
Ground Data Link Terminals and 3
Ground Image Assessment Stations
and the integration of PODs to F-16
Block-30 aircrafts.
Within the extent of the Project for
the Development of Indigenous
Turkish MALE (Middle Altitude
Long Endurance) Unmanned
Aerial Vehicles (TIHA), ASELSAN
delivered mission computers and
the ASELFLIR-300T system to be
integrated into the Unmanned
Aerial Vehicle (UAV), which will
be developed solely with national
resources.
The Avionic Modernization of T-38
Aircrafts (ARI) Project, ASELSAN
plans to sign the amendment which
will cover the additional sale of Multi
Functional Display (MFD) systems by
the end of December 2013.
Under the scope of F-16 Procurement
(Peace Onyx-IV) Program, ASELSAN
continues the delivery of LN-260
EGI, Inertial Navigation Systems for
Turkish Army.
The Avionic Modernization of C-130
Aircrafts (ERCİYES); ASELSAN
continues the delivery of LN-260 EGI,
Inertial Navigation Systems and Multi
Functional Display (MFD) systems.
Under the JSF Program, ASELSAN
continues the Project for the Optical
Capabilities Enhancement with
Lockheed Martin - the primary
contractor - and the Project of the
Development of Prototype CAIC
(Communication, Navigation and
Identification (CNI) Avionic Interface
Controller) Module with Northrop
Grumman. The LM Star Test
Equipment provided by LM, in order
to test the subsystems of the F-35
aircraft, is planned to be installed at
ASELSAN MGEO Premises in January
2014.
Within the scope of efforts for the
Development of Guidance Kits,
ASELSAN originally designs and
develops Laser Guidance Kits (LGK),
which will be mounted to MK-82
and MK-84 Bombs. Moreover, the
company completed its efforts for
the industrialization of Precision
Guidance Kits (HGK) designed by
TÜBİTAK SAGE (Defense Industries
Research and Development Institute).
In this context, ASELSAN signed
contracts with the Turkish Ministry of
Defense in December 2013 for the
production of Precision Guidance Kits
and Laser Guidance Kits.
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Fields of Activity
Fields of Activity
Laser Target Marking Devices
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Fields of Activity
Electro-Optic Systems
ASELSAN CARRIES OUT THE DESIGN AND PRODUCTION OF DAY
VISION DEVICES, INFRARED VISION SYSTEMS, LASER SYSTEMS AND
NIGHT VISION DEVICES WITH IMAGE ENHANCERS.
Multi-sensor Electrooptical Surveillance and Targeting System
Fields of Activity
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Modern Infantry Electro-Optic Sensor Systems
Surveillance, Reconnaissance,
Designation and Modern Infantry
Systems
Devices
CATS (Common Aperture
Targeting System) is a multi-sensor
electrooptical surveillance and
targeting system which is designed
for use in stationery, rotating wing air
platforms and also on naval platforms.
ASELFLIR-300T Thermal Imaging
System is a multi-sensor payload used
for surveillance and reconnaissance
purposes in MALE (Medium Altitude
Long Endurance) UAV systems.
Within the scope of ongoing projects,
ASELSAN completed the integration
of ASELFLIR-300T System into various
air and naval platforms.
Delivery Projects
Within the scope of the “Equipment
Procurement Project for Providing
Stationery and Mobile Thermal
Camera Systems to Enable Land and
Sea Border Security in the European
Union”, ASELSAN began to deliver
FALCONEYE MW Electro-Optic Sensor
Systems and EYE Mobile Thermal
Camera Systems.
The company continued to deliver
the VIPER Laser Target Designation
System. The company signed
contracts within the scope of the
Procurement of EYE Seespot Thermal
Cameras and Laser Target Marking
Systems. ASELSAN also signed a
contract to procure the IP-based EYE
Thermal Camera Reconnaissance
and Surveillance System, aiming to
cover TAF’s need for remote controlled
surveillance system.
ASELSAN delivered VIPER Laser
Target Marking Devices, ASIR Thermal
Cameras and GÜNGÖR Day Vision
Cameras to NPP ASKB ALATAU,
a Kazakhstan-based company.
The company also signed a sale
contract with Kazakhstan ASELSAN
Engineering (KAE) for the delivery
of VIPER Laser Target Designation
Devices, EYE Thermal Cameras,
SHARPEYE Electro-Optic Sensor
System, ASIR Electro-Optic Sensor
System and PIRATE Head-Up Display
Units.
ASELSAN delivered night vision
sights, night vision goggles and
night vision binoculars to a number
of customers, particularly the Turkish
Armed Forces, but also to the
Disaster and Emergency Directorates,
the Ministry of Internal Affairs and
countries under the scope of the
Foreign Military assistance program
of the Ministry of National Defense,
as well as Kazakhstan, Jordan and
India. In cooperation with the Turkish
Armed Forces, the company sold
SCOUT Electro-Optic Sensor System
to various foreign markets.
Research & Development Projects
ASELSAN continued its efforts for
the development of electro-optical
systems, such as high resolution
thermal cameras, day vision cameras
and multi-pulse laser range finders.
ASELSAN has developed the ATS50 Thermal Sight system for the
armored Land Rover vehicles. A new
thermal sight system that fits the turret
structure of the vehicle and a base
plate where the weapon will be fixed
were designed and made ready for
use after being tested under field
conditions.
.
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Fields of Activity
Electro-Optic Systems
ASELSAN OFFERS SUPERIOR CAPABILITIES WITH STATE-OF-THEART
ELECTRO-OPTICAL SOLUTIONS.
Leopard Next Generation
Fields of Activity
57
Firing trials during the tests show that
the warfare performance of the Next
Generation MBT Upgrade Solution is
higher than the modern MBTs. Based
on superior image quality electrooptical periscopes managed by the
gunner and the commander which
provide accurate target engagement
in day, night and severe weather
conditions as well as highperformance
automatic target tracking function and
target state estimation capability, Next
Generation Upgrade Solution provides
high level of First Round Hit Probability
especially in Moving Tank /Moving
Target scenarios.
ASELSAN signed an agreement with
RUAG, a Swiss company, for the
integration of the Next Generation
Fire Control System to a Leopard
2A4 MBT within the scope of RUAG’s
modernization project. The aim of both
companies is to promote and market
the new modernization configuration
to the user countries.
Altay Project
Within the scope of the Thermal
Weapon Binoculars project, ASELSAN
continues its sales activities for the
Piton and Boa Thermal Weapon
Binoculars both in Turkey and abroad.
The company completed the design
of high performance mini thermal
weapon binoculars in 2013 and will
deliver them to the Turkish Armed
Forces in 2014.
Main Battle Tank and Armored Vehicle
Systems
Within the scope of the Turkish
National Main Battle Tank Program
(ALTAY), ASELSAN delivered the initial
prototypes of the, Tank Fire Control
System, Electrical Gun and Turret
Drive System, Battlefield Management
System, Communication System,
Tank Driver’s Vision System, Tank
Laser Warning System and Remote
Stabilized Weapon Station. In the
design of these ASELSAN Systems,
ASELSAN’s utmost priority was to
develop systems having minimum Life
Cycle Cost and maximum operational
availability to the maximum extend.
These systems were integrated to the
prototype tanks of ALTAY MBT, which
are being subjected to the firing tests.
Live firing tests have been performed
on the prototype vehicles of ALTAY
MBT in Şereflikoçhisar Tank Firing
Area since July 2013.
Subsystems developed by ASELSAN
for the Turkish National Main Battle
Tank Program (ALTAY) were also
integrated to a Leopard 2A4 MBT,
named as Next Generation Upgrade
Solution. Field and firing tests of
the Next Generation MBT Upgrade
Solution had been performed under all
weather conditions between the dates,
November 2011-March 2013; and the
Next Generation MBT delivered the
first functional seeker prototype. Within
the scope of the HISAR-A Project, the
company completed Phase I (System
Design Phase) of the Project.
ASELSAN maintains its work to
develop high performance and
low-cost Imaging Infrared Seekers
for Mid- and Long-Range Antitank
Missiles. Seeker system prototypes
manufactured by the company were
used in guided missile firing tests and
demonstrated a higher performance
beyond the required ranges. The
company currently continues pilot
production and delivery of Imaging
Infrared Seeker Systems.
Navigation Systems
ASELSAN continues its efforts to
integrate Navigation Systems into
various land platforms. The company
continues to deliver these systems,
which provide high positioning and
pointing accuracy to be used for
targeting with automatic fire control
systems. ASELSAN started the
integration of the ANS-510K – an
indigenous navigation level Inertial
Navigation System which is included
in TAF’s inventory as part of the ATAK
and ADOP projects - to the Mobile
Target Acquisition Radars and Rocket
Launching Platforms. The company
completed the design of the ANS-310
- a tactical level Inertial Navigation
System - and is currently proceeding
with its business development
activities.
ASELSAN develops sighting systems
and thermal cameras for different
types of Main Battle Tanks and
Armoured Vehicles. In this context,
ASELSAN, the company signed
contracts for the sale of thermal
cameras that can be integrated to
various MBTs and Armoured Vehicles
and the delivery of thermal cameras
are successfully carried out.
Sighting systems comprising cooled
and uncooled thermal imagers have
been developed and manufactured
to be integrated on remote weapon
platforms for Turkish Armed Forces
and Turkish
National Police.
Missile Guidance and Seeker Systems
ASELSAN has continued to design
and develop Imaging Infrared Seeker
for HISAR A/O Low and Medium
Altitude Air Defense Missiles, and
delivered the first functional seeker
prototype. Within the scope of the
HISAR-A Project, the company
completed Phase I (System Design
Phase) of the Project.
ASELSAN maintains its work to
develop high performance and
low-cost Imaging Infrared Seekers
for Mid- and Long-Range Antitank
Missiles. Seeker system prototypes
manufactured by the company were
used in guided missile firing tests and
demonstrated a higher performance
beyond the required ranges. The
company currently continues pilot
production and delivery of Imaging
Infrared Seeker Systems.
58
Fields of Activity
Naval Systems
ASELSAN IS INVOLVED IN VARIOUS PROJECTS INCLUDING THE
DESIGN, DEVELOPMENT AND INTEGRATION OF NAVAL SYSTEMS,
PARTICULARLY COMBAT SYSTEMS OF UNDERWATER AND SURFACE
PLATFORMS.
Urbanitas admodum
Coastguard
Search habemus
& Rescuecorpora
Ship his in. Ad ius
Fields of Activity
59
New Type Patrol Boat
Battleships
Within the scope of the MILGEM
Ships Combat Systems Project,
ASELSAN concentrated its efforts
on TCG HEYBELİADA as the first
MILGEM ship and TCG BÜYÜKADA
as the second MILGEM ship.
Within the scope of naval combat
systems that are designed especially
to improve the air defense and
underwater / surface combat
capabilities of both ships, the
company developed, delivered and
integrated the following systems
and performed the required
tests: communication, satellite
communication, navigation, electrooptics, laser warning system (LWS),
electronic warfare, radars, sonar,
missile, naval gun control, remote
control weapon and self-defense
systems.
The company continued work on
the procurement and integration of
electronics and combat systems for 8
TUZLA Class patrol boats.
The company completed the
procurement and integration of
weapons and electronics systems of
4 DOST Class Coastguard Search &
Rescue Ships.
As part of the Mid Life Modernization
of Yavuz Class Frigates, ASELSAN
has currently accomplish adding
“electro-optical tracking” capability
- developed by ASELSAN - to the
fire control radars on three frigates,
and is currently involved in the
acceptance tests for a fourth frigate.
Within the scope of Gyro
Modernization Project, that aims to
modernize primary and backup gyros
used in naval surface platforms that
are present in six different classes
in the inventory of the Turkish Naval
Forces Command, the company
modernized these gyros with Inertial
Navigation Systems developed by
ASELSAN and integrated these
systems into a total of 29 surface
platforms.
Within the scope of Procurement of
Electro-Optic Display and Recording
Systems Project for the boats (of
SAR33, SAR35 and SAR80 Classes)
used by the Turkish Coastguard
Command, the company integrated
GÖZ Thermal Camera Systems developed by ASELSAN - onto a total
of 10 boats.
As part of the “Multifunction Range
Finder System” contract, ASELSAN
designed, manufactured and
delivered lightweight, compact,
handheld or remote use and highperformance Multifunction Range
Finder Systems (GZM-03), which
have high laser range finding (nonharmful for the eyes) and target
coordinate menstruation capability.
Based on the experience gained
in MILGEM and similar projects,
ASELSAN carries out promoting and
marketing activities with respect to
the sale of battle systems to foreign
countries through Turkish naval
shipyards. The company continued
to develop the ASELSAN VATOZ®
Naval Mission Management Software
within the scope of sales of SERHED
Ship Class Boats to foreign countries.
The company started the integration
of various missile systems to VATOZ®.
Auxiliary Vessels
Within the scope of the Underwater
Rescue Mother Ship (MOSHIP) and
Rescue and Towing Ship (RATSHIP)
Project, ASELSAN continued its
efforts in the procurement and
integration of the underwater
acoustics equipment, particularly
in the area of sonar systems used
in vessels. In accordance with the
project, the company maintained
its production activities for the
navigation systems (gyro) developed
by ASELSAN and Electro-Optic (IR/
LLTV) systems.
In the MTA (General Directorate of
Mineral Research and Exploration)
Seismic Exploration Ship Project,
ASELSAN carried out its efforts for
the procurement, production and
Integration of Scientific Research
Equipment and Systems and the
manufacture of navigation systems
(gyro) developed by ASELSAN.
60
Fields of Activity
Fields of Activity
Acoustic Torpedo Defense Decoy
61
62
Fields of Activity
Naval Systems
ASELSAN MEETS THE NEEDS OF THE NAVAL FORCES BY APPLYING
THE EXPERIENCE THAT IT HAS GAINED IN LAND AND AIR PLATFORMS
TO NAVAL PLATFORMS.
Urbanitas -admodum
habemus corpora his in. Ad ius
MİLGEM
Heybeliada
Fields of Activity
63
Development of Acoustic Jamming and Deception Systems for Submarines” (DAKA Project)
Landing Ships
Within the scope of the contract
signed, company delivered 25 mm
stabilized gun systems with remote
control, navigation systems and
combat systems, which will be used
in eight Fast Amphibious Ships. The
company completed all deliveries in
line with the schedule set forth in the
contract.
For two Amphibious Ships (Landing
Ship Tanks-LST), ASELSAN started
its efforts for development/production
and procurement of combat system
solutions, which comprise of Radars,
Electro-Optics, Communications,
Navigation, Electronic Warfare, and
Remote Control Weapon Systems.
Under the Landing Platform Dock
(LPD) Project, ASELSAN continued
its efforts to develop combat
system solutions, which comprises
following systems: Radars, ElectroOptics, Communications, Acoustics,
Navigation, Electronic Warfare, Fire
Control, Remote Control Weapon and
Self-Defense Systems.
Submarines
Within the scope of the New Type
Submarine Project, ASELSAN is
involved in development of Integrated
Communication System, X-Band
Satellite Communication System
and Electronic Support Systems. In
order to increase Turkey’s domestic
contributions to the project, ASELSAN
has worked on radar-absorbing paint,
alarm announcement/entertainment
systems, sonar “beacon” subsystems
and “plot” tables.
In New Type Submarine and AY
Class Submarine Modernization
Projects, company completed the
design and qualification of thermal
imaging devices operating in the
medium infrared waveband which will
be installed into the periscopes. The
company has already delivered two
out of ten systems.
Torpedo Countermeasure Systems
ASELSAN continued its efforts
concerning Torpedo Countermeasure
System technologies financed with
the company’s own resources.
ASELSAN has also concentrated
on projects to complete the design
of underwater acoustic system
technologies by taking into account
the activities and efforts of other
corporations and institutions in the
area of underwater acoustics.
ASELSAN’s Work in the “Torpedo
Countermeasure Systems”
Category
Within the scope of the “Development
of Acoustic Jamming and Deception
Systems for Submarines” project,
ASELSAN continued its efforts to
develop and produce Acoustic
Decoys and Jammers that can be
launched from the submarines of
Preveze and Gür classes. In addition,
the company started to install and
integrate the Decision Support
System to AY/PREVEZE/GÜR Class
Submarines.
The company completed production
of HIZIR Torpedo Jamming and
Deception System, which aims
to defend surface ships against
torpedoes. The company is currently
performing the qualification tests for
the subsystems. In line with these
efforts, the company continues to test
the HIZIR system in sea environment
based on various operational
scenarios and continues with its
activities for Integration of HIZIR
system into various ship building
projects, such as MILGEM, LST and
LPD.
ZOKA is a new version of expendable
acoustic torpedo countermeasure
decoy family developed for
international sales. The company
continued its efforts for sale of ZOKA
system in foreign markets.
ASELSAN’s Efforts in the “Active/
Passive Sonar Systems” Category
The company completed the
production of KULAÇ system, an
echo sounder meets with military
requirement, designed and
developed by ASELSAN, integrated
it into Ay-Class submarines. The
company also made necessary
modifications for using KULAÇ
system in all surface ships and
continued it efforts for all surface
ships in country and abroad.
ASELSAN began to develop
active acoustic devices such
as mine avoidance sonar, sidescan sonar, sonar for coastal
security applications, etc., which is
considered to be required in coming
future projects.
64
Efficiency and
Ambition
Fields of Activity
Fields of Activity
With its expertise in systems engineering, ASELSAN offers
customers a broad range of products and sophisticated system
solutions for modern platforms, such as command control, air
defense systems, naval systems, underwater acoustic systems
as well as systems integration.
65
66
Fields of Activity
Air and Missile Defense Systems
THANKS TO ITS STATE-OF-THE-ART TECHNOLOGY AND CAPABILITIES
WHICH FORM THE BASIS OF INTEGRATED AIR AND MISSILE DEFENSE
SYSTEMS, ASELSAN DESIGNS AND DEVELOPS UNIQUE LOW- AND
MID-ALTITUDE AIR DEFENSE SYSTEMS AS REQUIRED BY THE TURKISH
ARMED FORCES.
Low and Mid-Altitude Air Defense Systems
Fields of Activity
67
ASELSAN completed the system
design phase in the HISAR-A Project.
Test firing was performed at the
Tuzgölü Southern Region Firing Zone
for the Ballistic Testing Missile of the
Low Altitude Air Defense System in
October 2013.
The company began its efforts for
subsystem development and testing
in the HISAR-A Project and carries
out system design activities in the
HISAR-O Project.
Self-Propelled Low Altitude Air Defense Gun System-KORKUT
35 mm Self-Propelled Low Altitude
Air Defense Gun System-KORKUT
ASELSAN will improve Turkish Armed
Forces’ air defense capabilities with
new air defense systems that can use
airburst ammunition for more effective
defense against today’s air threats.
Within the scope of the project,
ASELSAN is developing 35 mm Gun
System (GS), Command Control
System (CCS) and Fire Control System
(FCS). CCS will manage operation of
Gun Systems as a team commander
and operates in coordination with the
upper air defense command control
elements. ASELSAN develops two
new radars in this project: Fire Control
Radar on GS - which will allow GS to
track the threat accurately - and the
3D Mobile Search Radar on CCS which will detect, track and identify
the targets. FCS will make use of both
radars in its operation.
Fire Control System (FCS)
Responsible for the command and
fire control of the 35 mm air defense
towed guns and Missile Launching
Systems (HİSAR-A), the FCS performs
all functions such as detection,
tracking and identification of threats
only by using its own subsystems. FCS
forms a layered air defense structure
with 35mm guns and low altitude
air defense missiles. FCS, which is
integrated into the Air Defense Early
Warning and Command Control
System (HERIKKS), operates in
coordination with other air defense
elements. FCS will be delivered to the
service of the TAF as a national system
equipped with the latest technology,
replacing the D-IX system in the TAF’s
inventory. ASELSAN completed the
subsystem development and testing
phase in the project and initiated the
system integration and testing phase.
Modernization of 35 mm Air Defense
Towed Artilleries
The 35 mm traditional air defense
towed guns present in the TAF’s
inventory have been modernized
in order to provide them with the
capability to use airburst ammunition
and to be operational under control of
FCS.
Low- and Mid-Altitude Air Defense
Missile Systems- HISAR
In 2011, ASELSAN and the
Undersecretariat for DefenseIndustries
signed a contract for the Design
and Development of Low Altitude Air
Defense Missile Systems (HISAR-A)
and Medium Altitude Air Defense
Missile Systems (HISAR-O). Low and
Medium Altitude Air Defense Missile
Systems will destroy threats in the low
and medium altitude within the scope
of point and regional air defense.
Within the scope of the HISAR-A
Project, the company will develop
the following systems and perform
the qualification of products and
production lines:
•Self-Propelled Autonomous Missile
System
•Missile Launching System
•Low Altitude Air Defense Missile
•which can be launched from either
of these two configurations.
The Self-Propelled Autonomous Missile
System that is under development
may autonomously perform their
missions fully, thanks to their 3D
search radar, command control and
fire control systems. On the other
hand, in the Missile Launching System
the command control and fire control
functions are performed by the Fire
Control System (FCS).
Anti-Submarine Warfare (ASW)
System
The Anti-Submarine Warfare (ASW)
System is a rocket launcher used to
defend critical bases and to establish
deterrence against enemy submarines
in the combat zone.
Within the scope of this project,
company manufactured 4 ASW Rocket
Launchers and integrated them
into New Type Patrol Boats (NTPB),
which are constructed in DEARSAN
shipyards.
ASELSAN exported 10 ASW Systems
and 300 ASW Rockets to Turkmenistan
Armed Forces. These systems and
rockets are currently integrated into
ASW SERHED Ship Class Boats.
Lightweight Multi-Role Missile
(LMM) Launching System
Within the framework of LMM
Launching System Project, ASELSAN
carries out the design, development
and prototype production of the
Launching System, performs tests in
the marine environment by integrating
the system into a light and small
surface platform and carries out
its efforts for the qualification of the
system.
In 2013 ASELSAN manufactured
theprototype of and began
qualificationtests for 2 LMM Launching
Systems, onewith 4-missile capacity
and the otherwith 8-missile capacity.
68
Fields of Activity
Command, Control, Communications, Computer and
Intelligence Systems
ASELSAN OFFERS USERS A WIDE ARRAY OF PRODUCTS IN THE
FIELDS OF SURVEILLANCE/RECONNAISSANCE AND INTELLIGENCE,
FIRE SUPPORT AND TACTICAL COMMUNICATION.
Air Defense Early Warning and Command Control System (HERIKKS)
Fields of Activity
69
Ammunition Transfer System
Fire Support Automation Project
ASELSAN’s Fire Support Automation
System automates command, control
and communication functions of fire
support in the combat zone and
ensures that fire support is provided
in full harmony with other functional
units of the combat zone.
Within the scope of the National
Tank Project (ALTAY Project),
ASELSAN has reached the testing
and qualification phase in the
development of the Tank Command
Control Communication Information
System, a project initially undertaken
by ASELSAN.
Within the scope of the Fire Support
Automation Project (FSAP-2000),
ASELSAN completed the delivery of
the systems in 2013.
Command, Control,
Communications, and Computer
Systems
ASELSAN develops and
manufactures military task
computers, military handheld
computers, monitors and keyboards
and respective cards (processor,
interface, power distribution,
video target reconnaissance and
surveillance unit, etc.), which are
portable or can be integrated into
land, air and naval systems and
which are suitable for harsh working
conditions in the combat zone.
As part of ASELSAN’s efforts to sell
Fire Support Systems to foreign
countries, the company carried
out various testing and promotion
activities and road-shows in various
countries.
Tank Command Control
Communication Information
System (TCCCIS)
The BATUR Combat Management
System is a command control system
which raises common situation
awareness of and introduces digital
information exchange capability to
the Battalion Task Forces, supports
the planning and execution of the
military operations through decision
support mechanisms, allows for
command control activities to be
controlled by computer, and ensures
that military personnel have access
to required information in the shortest
time possible.
ASELSAN manufactured a range of
products such as the EuroCard-3U
(transmission/air-cooling), EuroCard6U (transmission/air-cooling), Hybrid
(EuroCard-3U and EuroCard-6U
are used together) (transmission/
cooling), 19’’ rack-mounted (aircooling) military task computers
and HT-7244 Military Handheld
Computers. These devices were
deployed in various practices, such
as fire control, command control,
weapons management and secure
data communication in systems
including the Helicopter Electronic
Warfare System (HEWS), Stabilized
Machine Gun System (STAMP),
Stabilized Artillery System (STOP),
A400M Transport Aircraft, ADOP,
MOSHIP/KURYED and ALTAY.
The company completed its design
and qualification work for the serial
production of “HT-7250 Handheld
Military Computer” and “MP-7260
Military Panel Computer”, and
continues its preparation work in
these projects.
Air Defense Command and Control
System (HERİKKS)
ASELSAN’s HERİKKS is an Air
Defense Command and Control
System that manages the air
defense activities on Tactical
Level. HERİKKS basically provides
the interface among radar and
weapon systems and organizes
these separate systems so that
they act as a coherent integrated
air defense system. HERİKKS takes
air threat information from a variety
of radars, produces a recognized
air picture in real time and assigns
the available air defense weapons
to selected targets. It has an open
system architecture, giving scope for
sensor and weapon development,
and modular hardware and software
on a distributed architecture. Secure
communications can be provided
by ASELSAN’s Tactical Area
Communications System. In 2015
ASELSAN will be awarded a new
contract with deliveries in 2018 for
further Phase.
70
Fields of Activity
Unmanned Systems
ASELSAN DESIGNS AND MANUFACTURES UNMANNED SYSTEMS,
WHICH WILL BE USED EXTENSIVELY IN THE BATTLEFIELDS OF THE
FUTURE, WHICH CAN BE REMOTELY CONTROLLED AND ARE ABLE TO
MAKE DECISIONS AND APPLY THEM INDEPENDENTLY.
LEVENT Unmanned Surface Vehicle
Fields of Activity
71
Unmanned Land Vehicle Family
KAPLAN Unmanned Land Vehicle
Family (Bomb Detecting and
Dismantling Robots)
ASELSAN continued its efforts to
develop and produce the KAPLAN
Multi-Purpose Unmanned Land
Vehicle family of products in the
vehicle transportable class. In this
context, the company:
• delivered systems with the Bomb
Dismantling Robot configuration to
the General Directorate of Security;
• the KAPLAN Reconnaissance
and Surveillance System and
Unmanned Command Control Center
successfully passed the tests at
the Fort Benning Base in the USA
for standardized development and
interoperability with NATO systems;
• continued its efforts in the
integration of THz and GPR
identification systems for the
KAPLAN Unmanned Land Vehicle, to
enable bomb detection; and
• exhibited a concept demonstration
for remote bomb dismantling through
High Power Electromagnetic Waves
(HPEM) in the IDEF 2013 fair for the
first time.
ARI-1 Rotating-Wing Mini Unmanned Aerial Vehicle
Unmanned Surface Vehicle
The company continued its efforts
to develop the LEVENT Unmanned
Surface Vehicle.
On the distinguished observer day
of the Deniz Kurdu 2013 Naval
Exercise, ASELSAN demonstrated
the LEVENT Unmanned Surface
Vehicle to the heads of the Turkish
Armed Forces, including the Chief of
General Staff.
In this demonstration, a Port
and Base Defense scenario was
exercised, in which a hypothetical
boat seeking intrude a Noam area
in open waters was representatively
intervened.
Mini Unmanned Flying Systems
(MUFS) Development Project
Under the MUFS Program, the
company performed test flights and
other necessary work to develop
hardware and software for the
autopilot system and the ground
control station. ASELSAN also
completed the prototype production
phase and is currently continuing
the testing and verification of the
Micro Gimbals System with 2-axis
gimbal stabilization which can hold
a day camera or a non-cooling IR
camera. The cameras are planned
to be deployed as useful load on the
system.
ARI-1 Rotating-Wing Mini
Unmanned Aerial Vehicle
Within the scope of the ARI-1
Rotating-Wing Mini Unmanned Aerial
Vehicle Project, ASELSAN delivered
the system to Turkish Army, which
composed of two Air Platforms, a
Ground Control Station, a Ground
Data Terminal and a Scanner
Antenna” Pedestal.
72
Fields of Activity
Coastal and Border Security Systems
ASELSAN IS INVOLVED IN THE DEVELOPMENT AND PRODUCTION
OF BORDER SECURITY, COASTGUARD SECURITY, CRITICAL
INFRASTRUCTURE AND FACILITIES SECURITY AND CITY AND
COMMUNITY SECURITY SYSTEMS.
Border Security System Center
Coastal Security
The company completed
the development and on-site
establishment of a system to ensure
the security of a pilot region as
per the agreement signed with the
Coastguard Command.
Within the scope of the YUNUS
(Aksaz and Foça Surface and
Underwater Surveillance and
Identification System) project,
ASELSAN completed the installation,
integration and commissioning of
underwater / surface surveillance
and identification systems at the
Naval Forces Command’s naval
bases in Aksaz and Foça. The
company is currently carrying out
port acceptance tests.
Under the Coastal Surveillance Radar
System (CSRS) project, the company
launched the production of electrooptic sensors and coast surveillance
radars (SERDAR), developed by
ASELSAN. The electro-optical sensor
system designed and developed by
ASELSAN within the scope of CSRS
project comprise of a high-resolution
Thermal Camera, a Day Vision
Camera, a Moving Platform and a
Video Surveillance Unit.
Having evaluated a number of
international requests in the area of
coastal security, ASELSAN offered
various systems solutions, which
include ASELSAN’s products,
such as communication systems,
electro-optical systems, radars and
command control solutions.
Border Security
Within the scope of its efforts to
develop solutions for the security
of land borders, ASELSAN set up
and commissioned a model system
for testing/trial and development
purposes. The company continued
its efforts to develop this model
system together with ASELSAN’s
products and other subsystems
provided in Turkey. The company
also effected the improvements
necessary for this system to be used
with a command control system,
which can be easily integrated
into such systems (developed by
ASELSAN) present in TAF’s inventory
(when required) such as ADEWCCS,
the Fire Support Automation Systems
(FSAS), the Pedestal Mounted
STINGER Air Defense Systems
(PMS) and the Self-Propelled Artillery
Systems (FIRTINA). This modular
system was set up in a manner
where it can be used in all borders
if required, and can be integrated
into various products developed by
ASELSAN, such as electro-optical
systems, land surveillance radars,
remote control weapon systems and
unmanned vehicles.
Likewise, ASELSAN developed a
model system aimed at supporting
Azerbaijan’s border security, which
was tested at a border post in
coordination with Azerbaijan. The
company is currently working on the
system.
the Uruguayan government to
develop a solution package that
comprises of Mobile Reconnaissance
& Surveillance Systems, in order to
meet Uruguay’s needs to ensure its
border security.
Critical Facilities Security
ASELSAN developed system
solutions to enable the security of
critical facilities of a number of local/
foreign public and private institutions.
The company signed a contract to
ensure the security of a major facility.
Fields of Activity
73
Intelligent Transportation Systems
WE SUCCESSFULLY APPLY OUR MILITARY CAPABILITIES TO CIVILIAN
APPLICATIONS.
In line with the contracts signed with
the Turkish General Directorate of
Highways, ASELSAN developed and
installed Turkey’s first Multi-Lane Free
Flow Toll Collection System on the
Istanbul Strait Bridges, hence setting
grounds for the removal of booths
from the existing toll plazas on Turkish
highways.
delivery of the Automatic Vehicle and
Number Plate Recognition (ANPR)
System in 36 provinces as an integral
part of the Turkish Gendarmerie
Integrated Communications and
Information System. The system
automatically identifies number
plates along with vehicle brands and
color with a high level of accuracy
under free flow traffic conditions. The
company successfully completed
the design and testing of the vehiclemounted Mobile ANPR that will
extend capabilities of the overall
system.
ASELSAN carried out the first delivery
within the scope of the ETC and Cash
Based Tolling System project for
Polish highways. The company is
currently continuing its design and
development efforts to improve the
system capabilities.
Finally, in 2013 ASELSAN signed a
contract with the Turkish General
Directorate of Highways for the
design and implementation of
an Intelligent Highway Traffic
Management System on the Gebze
– Western Izmit Highway segment,
which is a part of the Trans-European
Motorway Network. Technologies
derived from toll collection and ANPR
systems technologies will be used in
the system design to improve traffic
safety and volume.
74
Fields of Activity
Weapon Systems
ASELSAN DEVELOPS, MANUFACTURES AND OFFERS WEAPON
SYSTEMS THAT CAN BE USED IN DIFFERENT PLATFORMS IN LAND
AND NAVAL WARFARE.
30 mm Stabilized Gun (MUHAFIZ) System
Fields of Activity
75
Remote Control Weapon Systems
ASELSAN’s Remote Control
Weapon Systems which provide
sensitive target surveillance, target
reconnaissance and high target
accuracy can serve under any
climatic conditions day or night,
thanks to integrated electro-optic
sensors and computer fire control
system.
In 2013 ASELSAN continued the
production of STAMP (Stabilized
Machine Gun Platform), STAMP-G
(a STAMP version on which the 12.7
mm GAU-19/A Gatling Gun can
be mounted) and STOP (a 25 mm
Stabilized Gun System) Remote
Control Weapon Systems in line with
orders received from both Turkey and
foreign countries.
The 30 mm Stabilized Gun (MUHAFIZ)
System joined ASELSAN’s Remote
Control Weapon System product
family of products. The first MUHAFIZ
system, which was manufactured
following an international order, was
delivered to the customer after naval
acceptance test firing was performed
from a ship in the Black Sea. The
company also developed the SARP
Remote Control Weapon System for
low and medium-caliber weapons to
support the close defense of tactical
vehicles and stationery facilities
against land and aerial threats. A 12.7
mm machine gun, a 7.62 mm machine
gun or a 40 mm grenade launcher can
be mounted on the system. ASELSAN
continued the production of the SARP
system in 2013 to meet the needs of
the Turkish Armed Forces and the
General Directorate of Security.
Besides the deliveries made to the
TAF and the General Directorate of
Security, the Remote Control Weapon
Systems were exported to a total of 6
countries.
PENÇE Unmanned Weapon Tower
laboratory tests for the development of
the 25 mm Unmanned Weapon Tower
and made it ready for testing on field.
FIRTINA T-155 Self-Propelled
Howitzer Fire Control System
The T-155 K/M FIRTINA Howitzer Fire
Control System allows the movement,
deployment, fire preparation, fire
direction and control processes of
the howitzer called “FIRTINA” to be
fulfilled with the help of a computer
and the digital integration of these
processes into other fire support
elements. ASELSAN continues the
production and delivery of these
systems.
Multiple Rocket Launcher Fire
Control and Weapon Management
System
Designed for Multiple Rocket
Launchers, the Fire Control and
Weapon Management System allows
the movement, deployment, fire
preparation, fire direction and control
processes of the multiple rocket
launchers to be fulfilled. The system
also renders it possible to execute the
mission in coordination with other fire
support elements.
Within the scope of contracts signed
for the sale of Fire Control and
Weapon Management System to
foreign countries, ASELSAN continued
the design, production and delivery of
these systems in 2013.
Air Portable Light Towed Howitzer
Fire Control System
Within the scope of the Air Portable
Light Towed Howitzer Fire Control
System Development Project, which is
conducted to produce modern, light
and air-portable artillery weapons
as required by the present combat
conditions, ASELSAN has undertaken
the development of the Fire Control
System. The company completed
the design of subsystems and the
production of the system’s prototype in
2013 and is currently carrying out the
qualification work for the system.
ASELSAN has developed an
Ammunition Transfer System for
Ammunition Supply Vehicles; this
system will be used to further raise
the effectiveness of FIRTINA SelfPropelled Howitzers.
The Ammunition Transfer System will
be used to enable faster loading of
ammunition to the Ammunition Supply
Vehicles at the ammunition supply
points and then to transfer the loaded
ammunition to the FIRTINA Howitzer.
design work for the Ammunition
Transfer System, the development
and production of which have been
undertaken by the company. The first
system was delivered to the customer.
ASELSAN began its serial production
in 2014.
76
Devotion and
Expertise
Fields of Activity
Fields of Activity
As Turkey’s Radar and Electronic Warfare Technology
Center, ASELSAN will become one of Europe’s largest
manufacturers of microwave modules when its new
facility enters operation.
77
78
Fields of Activity
Radar Systems
ASELSAN INCREASES ITS ACTIVITIES TO MEET THE RADAR NEEDS OF
THE ARMED FORCES WITH HIGH-TECH SYSTEMS.
Ground Surveillance Radar (ACAR)
Fields of Activity
79
Counter Mortar Radar (SERHAT)
Radar Projects
Besides meeting the needs of the
Turkish Armed Forces for radars in
Turkey through original high-tech
systems, the company is currently
working on the sale of these
systems to foreign countries and
the expansion of this field of activity,
so as to cover professional radar
applications. ASELSAN signed 3 new
contracts which can be considered
as important milestones in the Radar
Systems roadmap: the contract for
the first phase of the project for the
development of the Non-Rotating,
Multi-Face, Multifunction, Active
Phased Array Radar System that
will be used on naval platforms,
the contract for the first phase of
the project for the development of
Synthetic Aperture Radar Payload for
the GÖKTÜRK-3 SAR Satellite, and
the contract for the development and
production of the SERHAT Counter
Mortar Radar, which is of tremendous
importance in terms of the protection
of regions under threat of mortar
attack and the prevention of lethal
assaults.
Moreover, ASELSAN signed a
number of contracts for the sale of
our radar systems to be used on a
variety of platforms and systems. The
company also signed sales contracts
both in Turkey and internationally
for the new generation Ground
Surveillance Radar (ACAR), and
began the serial production and
delivery of the system. Under the
programs where contracts had been
signed previously, the company
pressed ahead with its intensive
design, development, production,
integration and testing activities in
2013. In this context, the company
manufactured the first systems of
the Fire Control Radar and the 3D
Mobile Search Radar with Electronic
Scanning Capability, which are
currently under development for Air
Defense Systems, and completed the
bulk of the testing and qualification
processes. The serial production of
radars will begin in 2014. In line with
these activities, the company carried
out various work to adapt the Search
Radar to naval platforms. Within
the scope of the Coast Surveillance
Radar System (CSRS) Project,
HAVELSAN, the primary contractor
of the project, for the procurement
of six SERDAR Coastal Surveillance
Radars from ASELSAN. The
company also continued its planned
activities regarding the SERDAR
radar for other projects and placed
and commissioned the radars in the
projected positions. Within the scope
of activities aimed at modernizing
the radar systems of GABYA- and
BARBAROS-class platforms,
ASELSAN completed the integration
of 3D Search Radars onto these
platforms and also the vessels within
the scope of the MILGEM project.
The company also carried out the
integration of the ALPER Naval LPI
Radar onto naval platforms within
the scope of the MILGEM project.
These radars are manufactured by
ASELSAN and undergo challenging
sea tests.
ASELSAN is also at the verge of
completion of its development
activities to add the Naval Search
Mode and ISAR Mode to the
Synthetic Aperture Radar (SAR)
System. ASELSAN currently
continues its efforts to integrate the
radar into the TUSAŞ ANKA UAV
platform. The company carried out
conceptual design work for the
Multifunction Aircraft Radar within the
scope of the National Combat Aircraft
Development Project. ASELSAN
also carried out the production and
delivery of the KALKAN Air Defense
Early Warning Radar within the scope
of the ongoing serial production
contract.
Microwave Modules
ASELSAN completed the pilot
production and delivery of 5 units of
custom designed frequency downconverter modules, which were
developed for Agilent (USA), one
of the world’s most deeply rooted
companies with a considerable
market share in microwave
applications. This was the company’s
first export activity in the area of
microwave modules.
80
Fields of Activity
Electronic Warfare Systems
ASELSAN STRIVES TO DEVELOP SYSTEMS AND TO INTEGRATE THEM
ONTO VARIOUS PLATFORMS IN ORDER TO ENSURE THAT LAND,
AIRBORNE AND NAVAL PLATFORMS PROTECT THEMSELVES AGAINST
RF AND EO GUIDED THREATS AT THE BATTLEFIELD.
Helicopter Electronic Warfare Systems
Fields of Activity
81
Clean Room
Electronic Warfare Self Protection
Systems
ASELSAN carries out its efforts to satisfy
the needs of Turkish Armed Forces’
platforms in the area of Electronic
Warfare Self Protection Systems with
state of the art systems designed and
developed in house.
ASELSAN and the Undersecretariat for
Defense Industries signed a series of
contracts, which can be considered
as important milestones along the
roadmap of Electronic Warfare Self
Protection Systems:
• The National Electronic Warfare Suite
Project for Yavuz Class Frigates,
• New generation Missile Warning
System software to be designed and
developed by ASELSAN to increase
the performance of the Missile Warning
System,
• Development of SiC-Based GaN
Switch Integrated Circuits (GaN-Switch)
and GaN-Based RF Power Transistors
on SiC Substrate,
• Preparation of the Standard Cell
Library for the 0.25um SiGeC BiCMOS
Technology.
Under the programs which were
previously launched after the
signature of respective contracts,
ASELSAN carried out intensive design,
development, production, integration
and testing activities in order to meet
the contractual requirements.
In this context, the Simulator
Performance Tests were successfully
completed following the LRU
Qualification, EMI/EMC, Environmental
Conditions and Specification
Compliance Tests for the qualification
of the HEWS Electronic Warfare Self
Protection System.
ASELSAN conducted ground and flight
tests for the first two helicopters, of
which the HEWS system was integrated
and ASELSAN received the approval
for Helicopter Integration and Testing
activities.
ASELSAN, in cooperation with TUSAŞ
(Turkish Aerospace Industries, Inc.),
carried out the conceptual design of the
Combat Aircraft Self Protection Systems
within the scope of the National Combat
Aircraft Conceptual Design Project.
Under the Attack Helicopter Project
(ATAK), ASELSAN continued the
delivery of Electronic Warfare SelfProtection Systems to TUSAŞ as
defined in the contract.
The efforts to develop Interrogator and
Transponder RF Units and Antennae
for Battlefield Recognition and
Identification Systems were continued.
The System Level Compliance Tests
and the delivery of the SPEWS-II
Systems integrated on the F-16
Aircraft were continued and the serial
production of these systems has been
started.
Within the scope of the MWS-TU
Missile Warning System Project and
HEWS CMDS/CFD Countermeasure
Dispensing System and the Chaff/Flare
Decoy Project; ASELSAN continued to
perform the deliveries to the customers,
carried out development and integration
activities for the CMDS Support Center
and MKE continued the production of
chaff decoys.
In the A400M Aircraft Missile Warning
System Joint Development Project,
ASELSAN completed the design,
production, integration and testing
activities of the parts of those under
the responsibility of ASELSAN and has
started their serial production.
The flight performance tests within the
scope of the MELTEM Maritime Patrol
Aircraft Electronic Warfare System
Project were completed.
The development of Telemetry System
RF Units and Antennae to be used in
various smart ammunition development
projects were completed after
successful completion of the testing
phase.
With respect to the development of
Electronic Warfare Pod (EWPOD) and
the Dispensable Jammer/Decoy which
will be integrated on to F-16 platforms,
ASELSAN submitted its proposal
consisting unique solutions to TÜBİTAK
SAVTAG (Defense and Security R&D).
Ongoing discussions were continued
to finalize the contractual issues for
the Electronic Warfare Self Protection
Systems to be supplied for the
helicopters under the General Purpose
Helicopter Program.
ASELSAN continued to produce
technical solutions and carried out
business development efforts for the
Systems for battle tanks and armored
vehicles against missile threats.
ASELSAN also carried out business
development efforts to supply and
install Electronic Warfare Self Protection
Systems to air platforms within the
scope of a variety of in-country and
foreign programs.
82
Fields of Activity
Electronic Warfare Systems
ASELSAN CARRIES OUT ITS EFFORTS TO DEVELOP SYSTEMS AND
TO INTEGRATE THEM INTO VARIOUS PLATFORMS. ASELSAN OFFERS
USERS UNIQUE AND INTEGRATED SOLUTIONS BY ENSURING THAT
THESE SYSTEMS WORK IN COORDINATION WITH OTHER SYSTEMS ON
THE PLATFORM.
Microwave Module
Fields of Activity
83
Submarine Electronic Support System and Antenna
Electronic Support and Electronic
Attack Systems
As Turkey’s Electronic Warfare
Technology Center, ASELSAN is
increasing its activities in this area.
Besides meeting the electronic warfare
needs of the Turkish Armed Forces
at home through original high-tech
systems, the company is currently
working on the sale of these systems to
foreign countries.
ASELSAN signed new contracts with
Industries, Prime Ministry, General
Directorate of Security, Ministry of
Foreign Affairs and Information and
Communication Technologies Authority.
These contracts can be considered as
important milestones in the Electronic
Warfare roadmap:
• Contract for VHF/UHF Direction
Finding and Monitoring Systems,
• Contract for Reactive RCIED Jammer
Systems,
• Contract for Mobile DF Systems, and
• Contract for the sale of KİRPİ Portable
Jammers and GERGEDAN VehicleType Jammers.
Under the programs which were
previously launched after the
respective contracts were signed,
the company carried out intensive
design, development, production,
and integration and testing activities
in 2013. In this context, the company
completed the acceptance tests
and the delivery of V/UHF Jammer
System. The company also completed
the factory acceptance tests for
the first Electronic Support System
and Submarine RWR/GPS Antenna
within the scope of the Project of
Modernization of Ay Class Submarines.
Regarding IED Jammers, the company
delivered GERGEDAN Vehicle-Type
Jammers. ASELSAN carried out its
design, production and integration
activities within the scope of projects
of; Land Platform Stand-off Radar
Electronic Support and Electronic
Attack System, New Type Submarine
Radar Electronic Support System,
Airborne Communication Direction
Finding and Monitoring System,
Fixed Site HF Direction Finding
and Monitoring System and Radar/
Communication jammer subsystems for
RAKAS/MUKAS contract.
The company continued with its
development activities for the a-SMART
product family, which is comprised
of various receivers, and direction
finding, RF/IF and voice recording
units. The a-SMART products are used
in HF and VHF/UHF frequency bands
in Communication Electronic Warfare
systems. ASELSAN completed the
qualification work for these products,
which are currently used by customers
as per recently signed contracts.
The company carried out business
development and pre-design
activities for the Airborne Stand-off
Jammer System Portable VHF/UHF
Direction Finding and Monitoring
Systems, the Radar Electronic Support
Systems for LSTs, Electronic Warfare
Systems for Azerbaijan and various
KİRPİ/GERGEDAN IED Jammers
solutions for Algerian Ministry of
Defense. The company submitted
Airborne SOJ System proposal to
Industries.
develop High Power Electromagnetic
Wave (HPEM) Systems, the company
manufactured portable products and
products that can be installed on robot
carriers, and exhibited them in national/
international fairs.
develop Stealth Technologies, the
company continued the development
of “Radar Absorption Materials” and
offered original ASELSAN solutions for
the tender called by TÜBİTAK SAVTAG
(Defense and Security R&D) for the
Project of Development of Composite
Radar Absorbing Structures for Air
Platforms.
Under the SANTEZ programs,
ASELSAN maintained its joint efforts
with METU for the Active Display
System Operating in Millimeter/
Terahertz Wavelengths and with IYTE
(Izmir Institute of Technology) for the
Highly Sensitive Terahertz Wave Fast
Bolometric Detector. The company
is undertaking preliminary work with
universities to broaden the SANTEZ
project.
ASELSAN is currently in negotiations
to launch serial production of various
Land Platform Electronic Warfare
Systems, which were previously
designed and delivered, aiming to sign
the related contracts in 2014.
84
Sustainability
Sustainability
Sustainability
85
86
Sustainability
Ethical Principles and Orientation
WE INFORM OUR EMPLOYEES OF OUR ETHICAL PRINCIPLES AS PART
OF OUR ORIENTATION PROGRAM.
Within the scope of corporate
governance, ASELSAN prepared
the Ethical Principles and Rules
of Conduct Document in order to
integrate its joint values and ethical
principles into its practices, to create
a working environment that complies
with the company’s ethical principles,
to prevent non-ethical behavior and
to raise awareness on this issue.
In line with our ethical principles, we
aim to prevent any potential conflicts
of interest, arrange ASELSAN’s
relations with its stakeholders
in a neutral manner and from a
professional point of view and
to ensure that our company fully
complies with the rules of all related
legislations.
ASELSAN’s Ethical Principles, which
we have shaped based on such
pillars as honesty, integrity and
business discipline, create a working
environment where all our employees
show respect, kindness, sincerity
and mutual tolerance to each other
and exchange their ideas on an open
platform.
All ASELSAN employees are
conscious of their responsibility
to protect our company’s longterm interests while meeting the
requirements of our society, the
general public, our customers,
our employees, shareholders and
stakeholders, and our supply chain;
to report and prevent unethical
behavior and; and to create a
working environment marked by
accountability and integrity.
In this context, we keep all our
employees informed of ASELSAN’s
Ethical Principles and Rules of
Conduct. Moreover, we inform
newly hired personnel of our ethical
principles as part of our orientation
program.
ASELSAN employees may obtain
information concerning compliance
with ethical principles and rules
of conduct from the executives
of their department and submit
information about any behavior
which they deem to be in violation of
the ethical principles to ASELSAN’s
Ethical Principles Board. Our Ethical
Principles Board starts evaluating
any notifications concerning behavior
alleged to be in violation of the
ethical principles within one day of
notification, and keeps the upper
management informed of the topic.
Sustainability
87
Human Resources
ASELSAN’S MOST IMPORTANT ASSET IS ITS INTELLECTUAL KNOWHOW, WHICH HAS BROUGHT THE COMPANY FROM THE PAST TO THE
PRESENT, AND WHICH WILL CARRY IT INTO THE FUTURE.
Human Resources
ASELSAN’s most important asset
is its intellectual know-how that has
brought the company from the past to
the present and which will carry it into
the future. We regard the investments
we make in our employees and
the collaborations we undertake
with all of our stakeholders in the
development of our human resources
as the primary factor that allows us
to reach ever higher targets each
passing year.
We work for those who predict the
future from today
ASELSAN stands for innovation
in Turkish industry, thanks to the
business results produced by
our employees, which all of our
stakeholders are proud of. With
an awareness and responsibility
of ensuring that ASELSAN an
indispensable employer brand for
those who had predicted the future
from today, we:
•• shape our practices in line with the
needs of our human resources;
•• investigate the priorities of the new
generation and all generations to
follow; we are preparing for the
future with a proactive working
approach;
•• revise and update our HR
information systems so as to ensure
that they respond to our employees’
needs at any time;
•• evaluate the results of all our
HR practices through digital
measurement methods and effect
necessary improvements at all
times; and
•• respect global resources and
carry out our activities in an
environmentally conscious manner.
We seek potential ASELSAN
employees everywhere
We aim to be the most preferred
employer not only in the defense
industry but among all technology
manufacturers. The basis of our
recruitment philosophy is to find
talented individuals who comply with
ASELSAN’s values, wherever they
are, and to hire them. Based on such
a philosophy and with the awareness
of becoming the most preferred
Turkish company for engineers, we:
•• brought about 100 people to
ASELSAN in the last 10 years
through the reverse brain drain;
•• offer university students (through
our candidate engineer program)
the opportunity to work at ASELSAN
during their student years;
•• conduct various efforts abroad to
bring in experienced individuals
serving at some of the world’s best
universities and research centers
to our team in order to contribute to
the strategic targets of ASELSAN
and our country; and
•• receive the highest rate of
feedback in professional networks
and strive to reach potential
ASELSAN employees in all
platforms.
Setting our direction through
performance measurements
Performance evaluations form the
basis of our talent management
system, directing all of our practices.
We secure the most important input
for our employees’ development and
career plans through performance
system outputs.
We offer career opportunities in our
subsidiaries in foreign countries
to those talented individuals who
are ready to benefit from new
opportunities.
We work in a target-oriented manner
and measure the impact of our
business results on our corporate
performance by means objective
criteria.
Focusing on the added value we
produce
With our competitive policy on pay
and benefits, which we continuously
monitor through wage surveys and
update as necessary so that our
employees can transfer their potential
to their jobs the most effective
manner, we:
•• consider performance and the
added value created; and
•• raise employee loyalty and
oversee the balance between
our employees’ professional and
private lives.
Continuously improving ourselves
•• We consider our contribution to the
development of our employees as
an investment placed in Turkey’s
technological development and in
this context, we:
•• form an academic infrastructure of
technologies that will be developed
in line with ASELSAN’s strategic
targets by offering postgraduate
education opportunities to our
employees;
•• enable all of our employees
to benefit from national and
international opportunities in order
to contribute to their professional
development; and
•• offer our employees the opportunity
to demonstrate their potential
to the maximum extent through
development and flexible career
opportunities.
88
Sustainability
Supply Chain
CONTINUOUSLY EXPANDING THE NUMBER OF ITS SUPPLIERS,
ASELSAN CURRENTLY HAS A BROAD SUPPLY NETWORK WITH A VAST
NUMBER OF VENDORS.
By continuously raising the
number of its vendors since its
establishment, ASELSAN currently
has a broad international and local
supply network and has reached
an impressive number of vendors.
ASELSAN is aware that a strong,
reliable network of suppliers is of
paramount importance in meeting its
commitments to its customers and
reaching its sustainability goals.
There are approximately around
14,000 registered suppliers in
ASELSAN’s ERP system, nearly
4,000 of received purchase orders
throughout 2013. Half of these
registered vendors are of foreign
origin stretching across a wide
region including the USA, Canada,
Australia, Europe and the Far-East.
The supplier selection and evaluation
procedure demonstrates a degree
of variation depending on type of
vendor or products. However, one of
the main principles is the importance
of checking and approving the
qualifications of the vendors and
products.
Supplier selection and evaluation
The supplier selection and evaluation
procedure is a key process in
ASELSAN’s sustainable supply
chain. Suppliers are selected by
conducting an equitable, transparent
and neutral evaluation process. The
company’s supplier selection and
evaluation system creates a fair
and open platform for any supplier
intending to conduct business
with ASELSAN. The following main
issues are checked and measured
in the supplier selection process, in
accordance with ASELSAN’s supply
chain values and/or international
standards:
•• Technological infrastructure
including design, development,
manufacture, measurement and
test activities,
•• Employing qualified personnel,
•• Possessing an active and inclusion
quality system,
•• Possessing a strong, reliable and
sustainable financial structure,
•• Compliance with ASELSAN’s
supply chain policy,
•• Compliance with the Environmental
Management standards,
•• Compliance with the Occupational
Health and Safety Management
standards,
•• Compliance with the labor law, and
•• Compliance with ethical standards
Furthermore, ASELSAN sustains
its design, development and
manufacture activities in accordance
with a number of national and
international Quality Assurance
Standards such as ISO, AQAP,
Aerospace 9100 and CMMI
standards. The assessment of each
of the above-mentioned issues
during the supplier selection and
evaluation procedure is also a
necessity in compliance with these
standards.
Supplier performance
The performance of each supplier
which is selected and approved of is
measured based on the parameters
of on-time delivery and the quality
of each delivery. A performance
score is used to set the audit
frequency and determine which
companies are successful on an
annual basis. Suppliers with a low
Sustainability
performance score are audited more
frequently than suppliers with high
performance scores. Successful
suppliers are awarded certificates
and announced on the ASELSAN
website. In interim audits, suppliers
are monitored and revaluated for
compliance with the aforementioned
issues, while suppliers unable to
sustain compatibility with ASELSAN’s
evaluation criteria are removed from
its supply chain. ASELSAN believes
the results of the performance
evaluation and audit are one of the
most important indicators of the
sustainability of its supply chain.
Support provided to suppliers
Most of ASELSAN-approved
suppliers are small and mid-sized
enterprises (SME) and we are aware
of their importance in our national
economy. ASELSAN considers these
SME suppliers are a key element of
its sustainability.
We have continued to offer a number
of supplier developmental assistance
programs to these SME suppliers.
Some examples of the assistance
programs are listed below:
•• Occupational training, especially
in electronic production activities
(During last five years, over 20,000
hours of training were provided to
our suppliers),
•• Providing technical support
during their new infrastructure
investments,
•• Sharing some of its special
equipment with suppliers,
•• Facilitating our suppliers’ access
to better financial resources by
cooperating with commercial
banks.
89
Responsibilities of suppliers
ASELSAN publishes its ethical
principles and rules of conduct on its
corporate website and expects these
ethical principles to be adopted and
accepted by its suppliers, too. The
Company also believes these ethical
principles and values are necessary
for the sustainable supply chain
and it is ready to corporate with its
suppliers through these principles.
The annual meeting held
at ASELSAN’s facilities by
the attendance of suppliers’
representatives is an opportunity
to introduce ASELSAN to the
suppliers and allow them to become
familiar with the company they are
providing service to. ASELSAN holds
discussions with its suppliers to find
ways to improve its collaboration
while also listening to their opinions.
90
Sustainability
Environmental Management, Occupational
Health and Safety
IN 2012 ASELSAN TOOK PART IN THE CARBON DISCLOSURE PROJECT,
WHICH IS REGARDED AS THE WORLD’S MOST COMPREHENSIVE
ENVIRONMENTAL INITIATIVE.
Integrated Management System
(IMS)
ASELSAN holds the ISO 14001:2004
Environmental Management
System and OHSAS 18001:2007
Occupational Health and Safety.
Both management systems operate
in integration. ASELSAN holds the
two most important internationally
recognized standards in the
Integrated Management System:
OHSAS 18001:2007 Occupational
Health and Safety Management
System and ISO 14001:2004
Environmental Management System
Certificates. Both management
systems are implemented integrally.
Under IMS, the interim control of the
system is ensured through internal
inspections conducted in order to
observe whether activities such as
tests and periodical inspections
comply with the pre-determined
criteria (statutory legislation,
corporate policies and targets and
standards).
OHSAS 18001:2007 Occupational
Health and Safety and ISO
14001:2004 Environmental
Management Systems are revised on
a regular basis discussions, which
include the following issues; the
company’s Environmental and OHS
policy, its pre-determined objectives
and targets, and its management
plans set forth for every year, as well
as internal and external inspection
results, status of corrective/
preventive actions, complaints and
recommendations with respect
to the environmental and OHSrelated issues, environmental and
occupational accidents, assessment
of compliance with legal and other
conditions, monitoring-measurement
results, improvement activities.
The reports prepared as a result
of the inspections and meetings in
connection with regular improvement
of the system are submitted to the
facility officer and their retention
in the facility/activity is properly
ensured.
Occupational Health and Safety
(OHS)
As a primary target, ASELSAN works
to ensure the health and safety of its
employees in a sustainable manner
in all of its operations. Any efforts
undertaken to this end are subject
to the policy laid down by upper
management. The purpose of the
company’s OHS-related efforts is
to minimize risks by eliminating any
dangers which could arise for various
reasons in the workplace and thus
maintain the safety of employees and
the working environment.
Coordination of Occupational Health
and Safety practices at ASELSAN is
ensured by the Occupational Health
and Safety Board (OHSB).
The Board performs annual fire/
earthquake and evacuation drills
on a regular basis every year with
the aim of ensuring the Company is
better prepared for any emergencies
that may occur, reviewing emergency
measures, ensuring that the staff
learns emergency response
methods and developing the skills of
emergency teams in responding to
emergencies.
The OHSB ensures that each
employee is provided with
occupational health and safety
training, specifically tailored for their
jobs, bi-annually. In 2013, a total
of 32,304 hours of OHS training
was provided to employees on 24
subjects, including ergonomics,
working at heights, physical and
chemical risk factors and training on
statutory legislation.
OHSB performs local measurements
(dust, gas, noise, thermal comfort,
lighting, etc.) in areas where it deems
necessary.
Local checks are performed in
production areas, repair/renovation/
construction areas, testing areas
(both inside and outside ASELSAN),
in order to prevent any potential
occupational accidents. Root
causes of occupational accidents
are identified by the Board and
necessary measures are taken in
this respect. The accidents that have
occurred are monitored monthly
through the calculation of Accident
Frequency Rates and Accident
Severity Ratios.
Risk Analysis studies in all areas
of operation are conducted at
ASELSAN, with the participation of
the members of the Risk Analysis
Team. As a result of risk analysis,
the OHSB ensures the appropriate
measures are taken depending on
the characteristics of the work done
and the facility, in compliance with
the principle of eliminating hazards
at their source, by collaborating with
relevant units.
Sustainability
At the end of each year, the OHSB
prepares an annual report assessing
operations in the current year and
identifying issues to be included in
the operating plan for the following
year, which is submitted to the upper
management.
Environmental Management
The Environmental Officer currently
works to determine the measures
to be taken in connection with
environmental safety at ASELSAN
/ Macunköy Facility and evaluating
problems arising due to their
implementation (of measures).
In addition, all work performed
regarding environmental issues
is evaluated by the members of
Environmental Safety Board (ESB),
which convenes at least once a year.
By closely monitoring the
implementation of measures, the ESB
ensures environmental sustainability,
identifies facilitating suggestions and
raises the quality and efficiency of
the implementation.
ASELSAN ensures that the
environmental management activities
are carried out in compliance with the
relevant legislation. Through regular
monitoring of the work carried out,
the Environmental Officer checks
whether the requirements of the
relevant legislation have been met.
Both standards and statutory
legislation require sorting of each
waste material by type, ensuring their
temporary storage in accordance
with legal storage periods, and the
delivery of waste material to licensed
waste collection entities authorized
by the Ministry of Environmental
and Urban Affairs, to prevent
the occurrence of environmental
problems. In accordance with
statutory legislation, defined
periodical measurements are carried
out by accredited entities.
Waste water generated in production
activities are channeled to the
chemical wastewater treatment
plant for treatment and finally
discharged into the sewage system
after treatment, in compliance with
statutory legislation.
Waste is divided into several subcategories – domestic waste,
packaging waste, non-hazardous
scrap, hazardous waste, electronic
waste and particular waste (such
as depleted tires, medical waste).
Relevant disposal methods are
followed for each type of waste under
the relevant regulations.
Used batteries and accumulators,
chemical waste, chemical packages,
any types of materials contaminated
by chemicals, waste oils/lubricants,
oily chips, electronic wastes, waste
fluorescents and waste filters
as generated by the company’s
operations are treated as hazardous
waste.
Mineral waste oils and vegetal
waste oils are individually stored
and delivered by the Environmental
Officer to the licensed collectors.
Medical waste generated from the
infirmary is collected in sealed in leak
proof containers marked “medical
waste” and “biological hazard” as
defined by the relevant regulations,
which are then delivered to the
relevant authorities.
At ASELSAN, the staff receives
annual environmental training.
Also, in accordance with statutory
legislation, employees receive
drills and environmental training to
demonstrate the necessary action
to be taken in case of a potential
chemical leakage or spill, and ensure
that the staffs are prepared for all
kinds of environmental accidents.
Climate Change and Carbon
Management
The Environmental Safety Board
(ESB) ensures the calculation
of carbon footprint value of the
facility annually in compliance with
ISO 14064 standard, providing
notifications to national/international
initiatives in connection therewith.
Within this framework, ASELSAN took
part in the Carbon Disclosure Project
(CDP) in 2012, which is regarded
as the world’s most comprehensive
environmental initiative.
91
ASELSAN has succeeded in
qualifying for the “Highest” category
with the result it has received as
a result of inspections. ASELSAN
commands a reputation of being
the first company to have received
the highest initial score among
the defense industry companies
participating in the CDP poll in
Turkey.
ASELSAN’s targets regarding
carbon are determined by the upper
management, subject to strategic
goals. Achievements and periodical
reviews of the goals are conducted
by the ESB. A reduction in carbon
emissions is targeted for 2014.
ASELSAN pays particular attention
to carbon emissions in all of its
operations. The Environmental Officer
is in charge of the issue of climate
change and monitoring emissions.
Natural gas, which does not pollute
the environment and produces less
CO2 than other fossil fuels, is being
used within boilers which operate at
efficiencies of approximately 93-94%.
Measures are implemented aimed at
effectively further reducing carbon
emissions by installing filters on the
chimneys. In addition, efforts are
under way to recycle boiler flue heat
and find methods of harnessing such
energy.
Energy consumption is monitored
regularly at ASELSAN on a monthly
basis. The reason for any decrease
or increase in energy consumption is
analyzed, with measures being taken
to tackle any increases.
92
Abbreviations
Abbreviations
3BAR: 3D Surveillance Radar
AB-205 Helicopter: A type of helicopter
included in the inventory of the
Gendarmerie General Command
ADC: Analog – Digital Converter
ADOP-2000: Artillery Fire Support
Automation Project
AES-256: Advanced Encryption Standard
- 256
AESA: Active Electronically Scanned
Array
AIFF: Advanced Identification Friend or
Foe
AİHSFFS: Low Altitude Air Defense
Missile Launcher (HİSAR-A)
AİHSFS: Low Altitude Air Defense Missile
System
AKR: Fire Control Radar
ALTAY Project: Project for the production
of a Tank with National Resources
ALTAY: Turkish Main Battle Tank
AMDEB: Emergency Intervention and
Divers Training Boat
AMKB: Avionics Central Control
Computer
ANKA: Medium Altitude Long Endurance
(MALE) Class Unmanned Aerial System
ANS-310: Tactical Level Inertial
Navigation System
ANS-510: Airborne Inertial Navigation
System
ANS-510K: Land Inertial Navigation
System
APCO: Association of Public Safety
Communications Officials-International
A-PTS: License Plate Recognition
System
ARI: Avionic Modernization of T-38
Aircrafts
ARI-1: Rotating Wing Mini Unmanned
Aerial System Project
ARTEMIS Program: EU’s R&D Program
Supporting Projects for Embedded
Systems
ASELFLIR-300D: Naval Thermal Imaging
and Advanced Targeting System
ASELFLIR-300T: Thermal Imaging and
Advanced Targeting System
ASELPOD: Advanced Targeting Pod for
Aircrafts
ASES: ASELSAN Electronic Warfare
System
ASIR: Thermal Display System
a-SMARD: ASELSAN Surveillance,
Monitoring and Radio Direction Finding
Family
AWS: Anti-Submarine Warfare
ATAK: T-129 ATAK Helicopter included
in the inventory of the Land Forces
Command
ATE: Automated Test Equipment
ATS-50: Thermal Sight System
AVCI: Helmet Integrated and Cueing
System
Boa: Boa Thermal Weapon Sight
C-130: A transport aircraft included in the
inventory of the Air Forces Command
ÇAFRAD: Multi-Purpose Phased Array
Radar
CAIC: Communication, Navigation and
Identification (CNI) Avionic Interface
Controller
CATS: Electro-Optical Surveillance and
Targeting System
Cayro: A type of inertial navigation
system
CCS: Command Control System
CFD: Chaff/Flare Decoy
CMDS: Counter Measure Dispensing
System
Czochralski method: A method for
growing semi-conductive crystals
DF: Direction Finding
DHS-101: Intercommunication System
DMR: Digital Mobile Radio
DRFM: Digital RF Memory
DSH: Anti-Submarine Warfare
Dz.K.K.lığı: Turkish Navy
EAL4+ (ALC_FLR.2, AVA_VAN.5): An
internationally recognized certification for
software security, Level: 4+
ED (ES): Electronic Support
EH (EW): Electronic Warfare
EHDM (EWSC): Electronic Warfare
Support Center
EHF: Extremely High Frequency
EHHAS: Secure Cellular Communication
System
EHİT: Electronic Warfare, Intelligence and
Attack
EHKK: Electronic Warfare Self-Protection
EHPOD: Electronic Warfare Pod
ELT: Emergency Locater Transmitter
ENGEREK: Viper Laser Target
Designator
EO/IR POD: Long-Range
Reconnaissance Pod with Visible and
Thermal Wavelength
EO/IR: Electro-optic/Infrared
ERCİYES: Avionic Modernization of
C-130 Aircrafts
ET (EA): Electronic Attack
EUREKA Program: An international
cooperation program supporting projects
for the development of market-specific
products and processes
F-16 Block-30: A type of fighter aircraft
included in the inventory of the Air Forces
Command
F-16: A type of fighter aircraft included in
the inventory of the Air Forces Command
F-35: A type of fighter aircraft planned
to be included in the inventory of the Air
Forces Command
F-4E/2020: A type of fighter aircraft
included in the inventory of the Air Forces
Command
FCS: Fire Control System
FIRTINA: Self-Propelled Howitzer
FX/TX: Fighter Jet / Trainer Jet
GaAs: Gallium Arsenide
GaN: Gallium Nitride
GES: General Staff Electronic Systems
GHz: GigaHertz
GÖZ: Eye Thermal Camera
GPS: Global Positioning System
GS: Gun System
GÜNGÖR: Day Vision Camera
GZM-03: Multifunction Range Finder
Systems
HERİKKS: Air Defense Early Warning
and Command Control System
HEWS: Helicopter Electronic Warfare
System
HF: High Frequency
HGK: Precision Guidance Kit
HİBMK.lığı: Air Supply and Maintenance
Center Command
HİSAR-A/O: Low and Medium Altitude
Air Defense Missile Systems -(LALADMIS
/ MALADMIS)
HITL: Hardware in the Loop
HIZIR: Surface Ship Torpedo Counter
Measure System
Hv.K.K.: Air Forces Command
Hv.K.K.lığı: Air Forces Command
İHA: Unmanned Aerial Vehicle
IMAS: Integrated Modular Avionics
System
INS/GPS: Inertial Navigation System/
Global Positioning System
IP: Internet Protocol
IR/LLTV: Infrared / Low Light Day Vision
Camera
IRCM: Infrared Countermeasures
İYTE: Izmir Institute of Technology
JEMUS: Gendarmerie Integrated
Communication and Intelligence System.
A radio network that can be used by
the Gendarmerie Forces throughout the
country
Abbreviations
JHM: Avionic Modernization of
Helicopters
JSF: Joint Strike Fighter
K.K.K.: Land Forces Command
KAE: Kazakhstan Aselsan Engineering
KANAL: Middle East Technical University
Quantum Devices and Nanophotonics
Research Laboratory
KDU-44: Avionic Keyboard Display Unit
KESKİNGÖZ: Sharpeye Hand-Held
Integrated Electro-Optical System
KIAT: Korean Institute for Advancement
of Technology
KMS: Pedestal Mounted STINGER Air
Defense Systems
KÖAB: Infrared Viewer Seeker
KORSAN: External Display Unit
KURYED: Rescue and Towing Ship
LCT: Landing Craft Tank
LDG: Logistics Support Ship
Leopard 2A4: Main Combat Tank (made
in Germany)
LGK: Laser Guidance Kit
LİAS: Laser Warning Receiver System
LMM: Lightweight Multi-Role Missile
LM Star: Lockheed Martin Automated
Test Equipment
LPD: Landing Platform Dock
LPI: Low Probability of Intercept
LST: Landing Ship Tank
LTCC: Low Temperature Co-fired
Ceramics
LWR: Laser Warning Receiver
M.S.B.: Ministry of National Defense
MALE: Medium Altitude Long Endurance
MAR: Mobil Search Radar
Marie Curie Funds: R&D funds for
researchers within the scope of EU’s 7th
Framework Programme
MEMS: Micro Electro Mechanical
Systems
MFD: Multi Functional Display
MHz: MegaHertz
Mi-17 Helicopter: A type of helicopter
included in the Gendarmerie General
Command
Mikrobolometre: Non-Cooling Infrared
Detector
MİLGEM: Turkish Corvette Program
(MİLGEM)
MİLKAR: National Jammer Project
MİLKED: National Position Finding
Electronic Support System
MİLSİS: National Signal Intelligence
System
MİUS(MUFS): Mini Unmanned Flying
Systems
MK-82: 500 Pound General Purpose
Bomb
MK-84: 2,000 Pound General Purpose
Bomb
MMIC: Microwave Monolithic Integrated
Circuit
MMR: Multi-Mode Receiver
MOSHIP: Submarine Rescue Mother Ship
MUHAFIZ: 30 mm Stabilized Artillery
System
MUKAS: Combat Jamming and
Deception Simulator
MWS: Missile Warning System
NATO NINE: Next Generation IP
Encryption Standard for NATO
NRTC: National Radio &
Telecommunication Corporation
ODTÜ: Middle East Technical University
OİHSFS: Medium Altitude Air Defense
Missile System (HİSAR-O)
Öz.K.K.: Special Forces Command
Peace Onyx-III: F-16 Modernization
Program
Peace Onyx-IV: F-16 Procurement
Program
Piton: Piton Thermal Weapon Sight
QoS: Quality of Service
QWIP: InP (Indium Phosphate) Based
Quantum Well Infrared Photodetectors
(QWIP)
RAKAS: Radar Jamming and Deception
Simulator
RECONSURVE: “Reconfigurable
Surveillance System with Communicating
Smart Sensors” EUREKA-TÜBİTAK 1509
Project
R&D: Research and Development
RF: Radio Frequency
RFJ: RF Jammer
RFKS: RF Jammer System
RİAS: Radar Warning Receiver System
RWR: Radar Warning Receiver
S-70 Sikorsky Helicopters: A type of
helicopter included in the inventory of the
SAGE: Defense Industries Research and
Development Institute
Şahingözü OD: Electro-optic Sensor
System (Medium Wave)
SAHMUS: Coast Guard Communication
System
SANTEZ: Industrial Thesis Program
SAR GMTI POD: Reconnaissance Pod
with Synthetic Aperture Radar (SAR)
SAR: Synthetic Aperture Radar
SAR33: A boat class included among
Floating Platform in the inventory of the
Coast Guard Command
Coast Guard Command
Coast Guard Command
SAVTAG: Defense and Security R&D
SCPU: Suite Central Processing Unit
Seaguard-TMK: Fire Control Radar
SGK: Coast Guard Command
93
SGRS: Coastal Surveillance Radar
System
SGSB: Serhet Ship Class Boat
SiGe: Silicon Germanium
SOJ: Stand-Off Jammer
SPEWS: Self Protection Electronic
Warfare System
SSM: Undersecretariat for Defense
Industries
Stabilize Pan&Tilt: Stabilized Pan & Tilt
Unit
STAMP: Stabilized Machine Gun System
STAMP-G: A STAMP version on which
the 12.7 mm GAU-19/A Gatling Gun can
be mounted
STOP: 25 mm Stabilized Artillery System
TAF: Turkish Armed Forces
T.S.K.: Turkish Armed Forces
T-38: A training aircraft included in the
inventory of Air Forces Command
TASMUS: Tactical Area Communication
System
TED: Tunnel Endpoint Discovery
Protocol. A routing protocol for secure IP
devices
TİHA: Indigeneous/Unique Turkish
Unmanned Aerial Vehicle
TIPS: Time Performance Improvement
with Parallel Processing Systems
TKKMBS: Tank Command Control
Combat and Information System
TSK: Turkish Armed Forces
TÜBİTAK: Scientific and Technological
Research Council of Turkey
TUSAŞ: Turkish Aerospace Industries,
Inc.
TWTA: Traveling Wave Tube Amplifier
TYS: TEM Gebze - Izmit Western
Highway Smart Traffic Management
System
UHF: Ultra High Frequency
VATOZ: Naval Task Management
Software
VHF: Very High Frequency
VMFD-68: Avionic Multifunction Display
VYB-4CF: Data Load Unit
YSAT: New Type SAT Boat
YTKB: New Type Patrol Boat
YUNUS Project: Aksaz and Foça
Surface and Underwater Surveillance and
Identification System Project
94
Financial Information
95
•Consolidated Balance Sheet
•Consolidated Income Statement
•Consolidated Statement of Changes In Equity
•Consolidated Statement of Cash Flow
AVCI Helmet Integrated Cueing System
96
ASELSAN Elektronik Sanayi ve Ticaret A.Ş. and Its Subsidiaries
Audited Consolidated Balance Sheet as of
31 December 2013
(Amounts are expressed in Turkish Lira (TL) unless otherwise stated.)
Current Period
Audited
31 December 2013
Restated Prior
Period Audited
31 December 2012
32
2,049,564,480
103,683,817
1,943,880,942
352,533,570
4-5
5
145,157,039
611,089,356
66,211,121
458,157,043
4-6
6
7
8
16
32,771,269
48,741,727
645,849,543
277,369,147
184,902,582
18,730,633
23,977,284
584,822,894
264,844,810
174,603,587
28
1,958,410,870
12,724,210
1,380,333,829
12,017,562
4-5
5
26,392,887
312,343,820
27,635,470
219,481,930
4-6
6
9
10
8
26
16
197,085
741,988,200
372,807,645
274,439,651
212,862,628
4,654,744
176,799
412,092,736
297,687,497
276,113,226
132,604,753
2,523,856
4,007,975,350
3,324,214,771
Note
References
ASSETS
CURRENT ASSETS
Cash and Cash Equivalents
Trade Receivables
Trade Receivables from Related Parties
Trade Receivables from Third Parties
Other Receivables
Other Receivables from Related Parties
Other Receivables from Third Parties
Inventory
Prepaid Expenses
Other Current Assets
NON-CURRENT ASSETS
Financial Investments
Trade Receivables
Other Receivables
Fixed Assets
Intangible Assets
Prepaid Expenses
Deferred Tax Assets
Other Non-Current Assets
TOTAL ASSETS
(*)
Effects of restatement are explained in Note 2.1, Comparative Information and Restatement of Prior Period Financial statements.
(*)
97
Audited Consolidated Balance Sheet as of
31 December 2013
Current Period
Audited
31 December 2013
Restated Prior
Period Audited
31 December 2012
28
28
936,244,985
157,226,761
22,832,818
776,838,100
210,788,558
658,118
4-5
5
15
16,265,805
377,182,297
19,226,599
48,991,710
246,600,350
16,085,066
4-6
6
11
8
26
30,320
418,061
11,280,034
214,035,003
480,904
180,202
826,832
7,433,936
145,743,263
304,275
15
13
16
25,395,640
88,973,470
2,897,273
18,656,924
76,764,254
3,804,612
28
1,459,244,914
173,227,412
1,281,281,080
114,017,502
4-5
5
12,163,376
1,639,370
9,375,383
4-6
6
11
8
30,518
1,878,514
1,162,027,069
20,326
785,936
1,041,969,070
15
13
107,067,815
2,850,210
104,434,432
9,039,061
17
17
1,612,485,451
1,611,967,650
500,000,000
98,620,780
1,266,095,591
1,265,551,399
500,000,000
98,620,780
(3,866,000)
177,532,454
69,677,755
531,921,172
238,081,489
(13,175,916)
52,071,680
321,656,271
306,378,584
517,801
544,192
4,007,975,350
3,324,214,771
Note
References
(*)
LIABILITIES
CURRENT LIABILITIES
Short-term Financial Liabilities
Short-term Portion of Long-term Financial Liabilities
Trade Payables
Trade Payables to Related Parties
Trade Payables to Third Parties
Employee Benefit Obligations
Other Liabilities
Other Liabilities to Related Parties
Other Liabilities to Third Parties
Government Grants and Incentives
Deferred Income
Corporate Tax Liability
Short-term Provisions
Short-term Provisions for Employee Benefits
Other Short-Term Provisions
Other Current Liabilities
NON-CURRENT LIABILITIES
Long-term Financial Liabilities
Trade Payables
Long-Term Payables
Other Payables to Related Parties
Other Payables to Third Parties
Deferred Income
Long-term Provisions
Long-term Provisions for Employee Benefits
Other Long-Term Provisions
EQUITY
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT
Share Capital
Share Capital Adjustments
Other Comprehensive Income / Expense not to be Reclassified to
Profit or Loss
Remeasurement Income/Loss from Defined Benefit Plans
Fixed Assets Revaluation Reserves
Restricted Profit Reserves
Retained Earnings
Net Profit for the Period
NON-CONTROLLING INTERESTS
TOTAL LIABILITIES AND EQUITY
(*)
25
17
98
Audited Consolidated Income Statement as of
31 December 2013
Note
References
Current Period
Audited
31 December 2013
Restated Prior
Period Audited
31 December 2012
2,171,425,296
(1,612,641,153)
1,632,896,367
(1,234,584,808)
558,784,143
398,311,559
(103,256,327)
(38,427,719)
(63,852,597)
317,096,874
(495,310,890)
(95,892,522)
(38,222,739)
(63,894,076)
305,727,251
(243,601,642)
175,033,484
262,427,831
10,369,803
3,765,258
185,403,287
266,193,089
6,536,436
(44,595,198)
14,228,072
(10,229,772)
147,344,525
270,191,389
91,202,409
36,725,467
(735,616)
91,938,025
(656,430)
37,381,897
238,546,934
306,916,856
465,445
238,081,489
538,272
306,378,584
238,546,934
306,916,856
0.48
0.61
(*)
PROFIT OR LOSS
Sales Revenue
Cost of Sales (-)
18
18
GROSS PROFIT
General Administrative Expenses (-)
Marketing Expenses (-)
Research and Development Expenses (-)
Other Operating Income
Other Operating Expenses (-)
20
20
20
21
21
OPERATING PROFIT
Income from Investing Activities
22
OPERATING PROFIT BEFORE FINANCIAL EXPENSE
Financial Income
Financial Expense (-)
23
24
PROFIT BEFORE TAX FROM CONTINUING OPERATIONS
Tax Income / (Expense) from Continuing Operations
- Current Corporate Tax Expense
- Deferred Tax Income/(Expense)
26
26
PROFIT FOR THE PERIOD FROM CONTINUING OPERATIONS
Distribution of Profit for the Period
Non-Controlling Interest
Parent Company
Earnings per 100 Shares
(*)
27
99
Audited Consolidated Income Statement as of
31 December 2013
Current Period
Audited
31 December 2013
Restated Prior
Period Audited
31 December 2012
238,546,934
306,916,856
187,010,667
187,053,422
11,637,395
(11,680,150)
(13,175,916)
(16,469,895)
3,293,979
OTHER COMPREHENSIVE INCOME
187,010,667
(13,175,916)
TOTAL COMPREHENSIVE INCOME
425,557,601
293,740,940
633,742
424,923,859
538,272
293,202,668
425,557,601
293,740,940
Note
References
PROFIT FOR THE PERIOD
Items not to be Reclassified in Profit/Loss
Fixed Asset Revaluation Increases
Remeasurement Income/Loss from Defined Benefit Plans
Deferred Tax Expense
25
26
(*)
Distribution of Total Comprehensive Income
Non-Controlling Interests
Parent Company
(*)
Effects of restatement are explained in Note 2.4, TAS 19 Emplayment Benefits.
100
Audited Consolidated Statement of Changes in Equity
For the Year Ended 31 December 2013
Other Comprehensive
Income / Expense not to be
Reclassified to Profit or Loss
Share
Share Capital
Capital
Adjustments
Accumulated Profit
Remeasurement
Remeasurement
Income/
Income/Loss
Loss from
from Defined
Revaluation of
Benefit Plans
Fixed Assets
Balance as of
1 January 2012
(Period Beginning)
235,224,000 132,773,042
-
-
Transfers
264,776,000 (34,152,262)
-
-
Restricted
Profit
Reserves
Retained
Earnings
42,731,216
447,322,067
Net Profit for
the Period
160,755,145 1,018,805,470
9,340,464 (125,665,796) (114,298,406)
Total Comprehensive
Income
-
-
-
-
-
-
Dividends
Equity
NonAttributable
Controlling
to Parent
Interests
Company
Total
10,920 1,018,816,390
-
-
-
293,202,668
293,202,668
538,272
293,740,940
(46,456,739)
(46,456,739)
(5,000)
(46,461,739)
-
-
-
-
-
-
Balance as of
31 December 2012
(Period End)
500,000,000
98,620,780
-
-
52,071,680
321,656,271
293,202,668 1,265,551,399
544,192 1,266,095,591
Balance as of
1 January 2013
(previously reported)
500,000,000
98,620,780
-
-
52,071,680
321,656,271
293,202,668 1,265,551,399
544,192 1,266,095,591
-
-
-
(13,175,916)
-
-
500,000,000
98,620,780
-
(13,175,916)
52,071,680
321,656,271
Transfers
-
-
-
-
17,595,111
210,283,473 (227,878,584)
Total Comprehensive
Income
-
-
177,532,454
9,309,916
-
-
Dividends
-
-
-
-
-
Transactions with
Non-Controlling
Interests
-
-
-
-
500,000,000
98,620,780
177,532,454
(3,866,000)
Effect of Change in
TAS 19 (Note:2.1
and 2.4)
Balance as of
1 January 2013
(Restated)
Balance as of
31 December 2013
(Period End)
13,175,916
-
306,378,584 1,265,551,399
-
-
544,192 1,266,095,591
-
-
-
238,081,489
424,923,859
633,742
425,557,601
(2,500)
(78,500,000)
(78,502,500)
-
(78,502,500)
10,964
(16,072)
-
(5,108) (660,133)
(665,241)
69,677,755
531,921,172
238,081,489 1,611,967,650
517,801 1,612,485,451
101
Audited Consolidated Statement of Cash Flow as of
31 December 2013
Note
References
CASH FLOWS FROM OPERATING ACTIVITIES
Current Period
Audited
1 January-31
December 2013
Restated Prior
Period Audited
1 January-31
December 2013
(*)
119,119,644
306,131,978
238,546,934
306,916,856
ADJUSTMENTS TO RECONCILE PROFIT FOR THE PERIOD
36,956,083
46,728,148
82,553,064
12,669,413
26,760,530
236,057
14,701,052
(8,688,682)
(400,995)
(146,730)
408,990
(7,317,219)
7,875,925
9,876,890
(91,202,409)
(10,369,803)
68,283,872
6,618,207
24,010,182
(70,887)
4,584,147
(348,152)
(216,020)
2,945,538
(5,957,884)
(12,883,616)
3,352,490
(3,639,168)
(36,725,467)
(3,225,094)
(149,864,490)
(52,353,314)
(60,879,919)
(322,590,805)
(38,825,365)
(10,850,762)
(8,565,564)
(2,130,888)
99,004,665
(548,461)
3,141,533
4,938,676
188,349,739
(907,339)
(35,853,273)
(309,927,120)
(23,101,780)
(106,030,847)
(42,295,046)
(470,955)
112,571,603
(2,083,208)
(1,750,610)
2,057,434
353,466,758
1,063,730
125,638,527
301,291,690
- Adjustments Related to Depreciation and Amortization Expenses
- Adjustments Related to Research and Development Expenses
- Provision for Employee Benefits
- Impairment Loss Recognized/(Reversed) on Trade Receivables - Net
- Guarantee Expense Provision Recognized/(Reversed) - Net
- Delay Penalties and Fines Provision Recognized/(Reversed) - Net
- Provision for Pending Claims and Lawsuits - Net
- Impairment Provision for Inventory - Net
- Other Provisions
- Adjustments Related to Interest Income
- Adjustments Related to Interest Expense
- Foreign Exchange Differences Related to Financial Borrowings - Net
- Adjustments Related to Tax Expense/Income
- Income from Investing Activities
9-10
10
5
13
13
13
7
21
24
26
22
MOVEMENTS IN WORKING CAPITAL
- Adjustments for Increase/Decrease in Inventory
- Adjustments for Increase/Decrease in Trade Receivables
- Adjustments for Increase/Decrease in Other Receivables
- Prepaid Expenses
- Other Current Assets
- Other Non-Current Assets
- Adjustments for Increase/Decrease in Trade Payables
- Adjustments for Increase/Decrease in Other Payables
- Employee Benefit Obligations
- Government Grants and Incentives
- Deferred Income
- Other Liabilities
NET CASH PROVIDED BY OPERATIONS
15
11
102
Audited Consolidated Statement of Cash Flows
Note
References
Interest Paid
Interest Received
Tax Payments/Refunds
Employee Termination Benefits Paid
Cash Flows from Investing Activities
Proceeds from Disposal of Fixed Assets
Payments for Fixed Assets
Payments for Intangible Assets - Net
Change in Financial Investments
Dividends Received
Cash Flows from Financing Activities
Proceeds from Borrowings
Repayments of Borrowings
Repayments of Obligations Under Finance Leases
Dividend Payments
15
9
10
17
NET CHANGE IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD
32
Current Period
Audited
1 January-31
December 2013
Restated Prior
Period Audited
1 January31 December 2013
(4,649,858)
4,440,998
(558,987)
(5,751,036)
(287,103,946)
222,194
(172,368,006)
(123,956,048)
(1,371,889)
10,369,803
(80,865,451)
612,218,353
(614,542,147)
(39,157)
(78,502,500)
(2,663,899)
12,883,616
(459,577)
(4,919,852)
(259,998,152)
4,278,979
(107,992,826)
(159,243,152)
(266,247)
3,225,094
143,055,285
418,425,854
(229,254,903)
346,073
(46,461,739)
(248,849,753)
189,189,111
352,533,570
163,344,459
103,683,817
352,533,570
(*) Effects of restatement are explained in Note 2, comparative information and restatement of prior period financial statements.
(*)
Directory
www.aselsan.com.tr
P.O. Box 1, Yenimahalle, 06172
Ankara - TURKEY
Mehmet Akif Ersoy Mahallesi 296.
Cadde No: 16,
06370 Yenimahalle-Ankara, TURKEY
Phone: +90 (312) 592 10 00
Fax : +90 (312) 354 13 02
+90 (312) 354 26 69
Akyurt Facilities
P.K. 30 Etlik, 06011, Ankara, TURKEY
Phone: +90 (312) 847 53 00
Fax : +90 (312) 847 53 20
[email protected]
Marketing
[email protected]
Human Resources
[email protected]
ASELSAN Encrypted Mobile Phone
104
Sustainability
Printed Material
P.O. Box 1, Yenimahalle, 06172 ANKARA - TURKEY
Phone: +90 592 10 00 Fax: +90 (312) 354 13 02 - 354 26 69
www.aselsan.com.tr / E-Mail: [email protected]
ASELSAN is a company of the Turkish Armed Forces Foundation.
2013 Financial Information
Prepared as per CMB Serial II, No:14.1
•Consolidated Statement of Financial Position
•Consolidated Statement of Profit or Loss
•Consolidated Statement of Other Comprehensive Income
•Consolidated Statement of Changes In Equity
•Consolidated Statement of Cash Flows
•Notes For The Consolidated Financial Statements
•Independent Auditor’s Report
•Annual Report of the Board of Directors
•Statement of Responsibility
ASELSAN A.Ş. Board of Directors Assessment Report Regarding Committee
Activities in 2013
Committee Work Directives
•Audit Committee Work Directives
•Risk Management Committee Work Directives
•Corporate Governance Committee Work Directives
Profit Distribution Proposal
Mehmet Akif Ersoy Mahallesi 296. Cadde No. 16 06370 Yenimahalle/Ankara
ASELSAN_FR13ENG_01-136.indd 1
5/29/14 5:43 PM
ASELSAN 2013 Annual Report
2
Audited Consolidated Statement of
Financial Position as of 31 December 2013
Note
References
ASSETS
Current Assets
Trade Receivables
Other Receivables
Inventory
Prepaid Expenses
Non-Current Assets
Trade Receivables
Other Receivables
Fixed Assets
Intangible Assets
Prepaid Expenses
Deferred Tax Assets
TOTAL ASSETS
(*)
32
4-5
5
4-6
6
7
8
16
28
4-5
5
4-6
6
9
10
8
26
16
Current Period
Audited 31 December 2013
2.049.564.480 103.683.817 145.157.039 611.089.356 32.771.269 48.741.727 645.849.543 277.369.147 184.902.582 1.958.410.870 12.724.210 26.392.887 312.343.820 -- 197.085 741.988.200 372.807.645 274.439.651 212.862.628 4.654.744 4.007.975.350 Restated Prior Period
(*)
1.943.880.942
352.533.570
66.211.121
458.157.043
18.730.633
23.977.284
584.822.894
264.844.810
174.603.587
1.380.333.829 12.017.562
27.635.470
219.481.930
-176.799
412.092.736
297.687.497
276.113.226
132.604.753
2.523.856
3.324.214.771 Effects of restatement are explained in Note 2.1, Comparative Information and Restatement of Prior Period Financial statements.
5/29/14 5:43 PM
3
Audited Consolidated Statement of
Financial Position as of 31 December 2013
Note
References
LIABILITIES
Current Liabilities
Short-term Portion of Long-term Financial
Liabilities
Trade Payables
Other Liabilities
Other Liabilities to Related Parties
Other Liabilities to Third Parties
Deferred Income
Corporate Tax Liability
Short-term Provisions
Short-term Provisions for Employee
Benefits
Other Short-Term Provisions
EQUITY
Equity attributable to equity holders of the
parent
Share Capital
Share Capital Adjustments
Other Comprehensive Income / Expense not
to be Reclassified to Profit or Loss
Remeasurement Income/Loss from Defined
Benefit Plans
Fixed Assets Revaluation Reserves
Restricted Profit Reserves
Retained Earnings
TOTAL LIABILITIES AND EQUITY
(*)
28
936.244.985 157.226.761 776.838.100
210.788.558
28
4-5
5
15
4-6
6
11
8
26
22.832.818
16.265.805
377.182.297
19.226.599
30.320
418.061
11.280.034
214.035.003
480.904
658.118
48.991.710
246.600.350
16.085.066
180.202
826.832
7.433.936
145.743.263
304.275
15
13
16
25.395.640
88.973.470
2.897.273
1.459.244.914
173.227.412
-12.163.376
-30.518
1.878.514
1.162.027.069
107.067.815
2.850.210
1.612.485.451
18.656.924
76.764.254
3.804.612
1.281.281.080 114.017.502
1.639.370
9.375.383
-20.326
785.936
1.041.969.070
104.434.432
9.039.061
1.266.095.591 28
4-5
5
4-6
6
11
8
15
13
Non-Current Liabilities
Trade Payables
Long-Term Payables
Other Payables to Related Parties
Other Payables to Third Parties
Deferred Income
Long-term Provisions
Long-term Provisions for Employee Benefits
Other Long-Term Provisions
17
17
25
17
(*)
Restated Prior Period
Current Period
1.611.967.650 500.000.000 98.620.780 1.265.551.399
500.000.000
98.620.780
(3.866.000) 177.532.454 69.677.755 531.921.172 238.081.489 517.801 4.007.975.350 (13.175.916)
-52.071.680
321.656.271
306.378.584
544.192
3.324.214.771 Effects of restatement are explained in Note 2.1, Comparative Information and Restatement of Prior Period Financial statements.
5/29/14 5:43 PM
4
Audited Consolidated Statement of Profit or Loss
PROFIT OR LOSS
Sales Revenue
Cost of Sales (-)
Note
References
18
18
GROSS PROFIT
General Administrative Expenses (-)
Marketing Expenses (-)
Research and Development Expenses (-)
20
20
20
21
21
OPERATING PROFIT
Current Period
Audited
31 December 2013
2.171.425.296
(1.612.641.153)
(*)
Audited
31 December 2012
1.632.896.367
(1.234.584.808)
558.784.143
398.311.559
(103.256.327)
(38.427.719)
(63.852.597)
317.096.874
(495.310.890)
(95.892.522)
(38.222.739)
(63.894.076)
305.727.251
(243.601.642)
175.033.484
262.427.831
22
10.369.803
3.765.258
OPERATING PROFIT BEFORE
FINANCIAL EXPENSE
Financial Income
23
24
185.403.287
6.536.436
(44.595.198)
266.193.089
14.228.072
(10.229.772)
PROFIT BEFORE TAX FROM
CONTINUING OPERATIONS
147.344.525
270.191.389
26
26
91.202.409
(735.616)
91.938.025
36.725.467
(656.430)
37.381.897
238.546.934
306.916.856
465.445
238.081.489
238.546.934
0,48
538.272
306.378.584
306.916.856
0,61
Tax Income / (Expense) from Continuing
Operations
- Current Corporate Tax Expense
- Deferred Tax Income/(Expense)
PROFIT FOR THE PERIOD FROM
CONTINUING OPERATIONS
Distribution of Profit for the Period:
Non-Controlling Interest
Parent Company
(*)
27
5/29/14 5:43 PM
5
Audited Consolidated Statement of Other Comprehensive Income
PROFIT FOR THE PERIOD
Current Period
Audited
31 December 2013
238.546.934
Note
References
(*)
Audited
31 December 2012
306.916.856
Items not to be Reclassified in Profit/
Loss
Fixed Asset Revaluation Increases
Remeasurement Income/Loss from
Defined Benefit Plans
Deferred Tax Expense
25
187.010.667
187.053.422
(13.175.916)
--
26
11.637.395
(11.680.150)
(16.469.895)
3.293.979
187.010.667
(13.175.916)
TOTAL COMPREHENSIVE INCOME
425.557.601
293.740.940
Distribution of Total Comprehensive
Income:
Parent Company
(*)
633.742
424.923.859
538.272
293.202.668
425.557.601
293.740.940
Effects of restatement are explained in Note 2.4, TAS 19 Emplayment Benefits.
5/29/14 5:43 PM
6
Audited Consolidated Statement of Changes in Equity
Other Comprehensive
Income / Expense not to be
Reclassified to Profit or Loss
Share
Capital
Share Capital
Adjustments
Remeasurement
Income/Loss
from Revaluation
of Fixed Assets
Accumulated Profit
Remeasurement
Income/Loss
from Defined
Benefit Plans
Restricted
Profit
Reserves
Retained
Earnings
Balance as of
1 January 2012
(Period Beginning)
235.224.000
132.773.042
--
--
42.731.216
447.322.067
Transfers
264.776.000
(34.152.262)
--
--
9.340.464
(125.665.796)
Net Profit for
the Period
Equity
Attributable
to Parent
Company
160.755.145 1.018.805.470
(114.298.406)
NonControlling
Interests
Total
10.920 1.018.816.390
--
--
--
Total Comprehensive
Income
--
--
--
--
--
--
293.202.668
293.202.668
538.272
293.740.940
Dividends
--
--
--
--
--
--
(46.456.739)
(46.456.739)
(5.000)
(46.461.739)
Balance as of
31 December 2012
(Period End)
500.000.000
98.620.780
--
--
52.071.680
321.656.271
293.202.668 1.265.551.399
544.192 1.266.095.591
Balance as of
1 January 2013
(previously
reported)
500.000.000
98.620.780
52.071.680
321.656.271
293.202.668 1.265.551.399
544.192 1.266.095.591
--
--
--
(13.175.916)
--
--
500.000.000
98.620.780
--
(13.175.916)
52.071.680
321.656.271
--
--
--
--
17.595.111
210.283.473
(227.878.584)
Effect of Change in
TAS 19 (Note:2.1
and 2.4)
Balance as of
1 January 2013
(Restated)
Transfers
13.175.916
306.378.584 1.265.551.399
--
544.192 1.266.095.591
--
238.081.489
424.923.859
633.742
425.557.601
(78.500.000)
(78.502.500)
--
(78.502.500)
(5.108)
(660.133)
(665.241)
--
--
177.532.454
9.309.916
--
Dividends
--
--
--
--
--
(2.500)
Transactions with
Non-Controlling
Interests
--
--
--
--
10.964
(16.072)
--
500.000.000
98.620.780
177.532.454
(3.866.000)
69.677.755
531.921.172
--
--
Total Comprehensive
Income
Balance as of
31 December 2013
(Period End)
--
238.081.489 1.611.967.650
--
517.801 1.612.485.451
5/29/14 5:43 PM
7
Current Period
Audited
1 January-31 December 2013
119.119.644
238.546.934
Audited
306.131.978
306.916.856
36.956.083
46.728.148
9-10
82.553.064
68.283.872
10
12.669.413
26.760.530
6.618.207
24.010.182
5
236.057
(70.887)
13
14.701.052
4.584.147
13
(8.688.682)
(348.152)
13
(400.995)
(216.020)
7
21
(146.730)
408.990
(7.317.219)
2.945.538
(5.957.884)
(12.883.616)
24
7.875.925
3.352.490
9.876.890
(3.639.168)
26
22
(91.202.409)
(10.369.803)
(149.864.490)
(36.725.467)
(3.225.094)
(52.353.314)
(60.879.919)
(35.853.273)
(322.590.805)
(309.927.120)
(38.825.365)
(10.850.762)
(8.565.564)
(2.130.888)
(23.101.780)
(106.030.847)
(42.295.046)
(470.955)
99.004.665
112.571.603
15
11
(548.461)
3.141.533
4.938.676
188.349.739
(907.339)
125.638.527
(2.083.208)
(1.750.610)
2.057.434
353.466.758
1.063.730
301.291.690
Note
References
Cash Flows from Operating Activities Net Profit for the Period
Adjustments to Reconcile Profit for
the Period
- Adjustments Related to Depreciation
and Amortization Expenses
- Adjustments Related to Research and
Development Expenses
- Provision for Employee Benefits
- Impairment Loss Recognized/
(Reversed) on Trade Receivables - Net
- Guarantee Expense Provision
Recognized/(Reversed) - Net
- Delay Penalties and Fines Provision
Recognized/(Reversed) - Net
- Provision for Pending Claims and
Lawsuits - Net
- Impairment Provision for Inventory Net
- Other Provisions
- Adjustments Related to Interest Income
- Adjustments Related to Interest
Expense
- Foreign Exchange Differences Related
to Financial Borrowings - Net
- Adjustments Related to Tax Expense/
Income
- Income from Investing Activities
Movements in Working Capital
- Adjustments for Increase/Decrease in
Inventory
Trade Receivables
Other Receivables
- Prepaid Expenses
- Other Current Assets
- Other Non-Current Assets
Trade Payables
Other Payables
- Employee Benefit Obligations
- Government Grants and Incentives
- Deferred Income
- Other Liabilities
Net Cash Provided By Operations
(*)
5/29/14 5:43 PM
8
Current Period
Audited
Audited
15
9
10
(4.649.858)
4.440.998
(558.987)
(5.751.036)
(287.103.946)
222.194
(172.368.006)
(123.956.048)
(1.371.889)
10.369.803
(80.865.451)
612.218.353
(614.542.147)
(2.663.899)
12.883.616
(459.577)
(4.919.852)
(259.998.152)
4.278.979
(107.992.826)
(159.243.152)
(266.247)
3.225.094
143.055.285
418.425.854
(229.254.903)
17
(39.157)
(78.502.500)
346.073
(46.461.739)
(248.849.753)
189.189.111
352.533.570
163.344.459
32
103.683.817
352.533.570
Note
References
Interest Paid
Interest Received
Tax Payments/Refunds
Employee Termination Benefits Paid
Cash Flows from Investing Activities
Proceeds from Disposal of Fixed Assets
Payments for Fixed Assets
Payments for Intangible Assets - Net
Change in Financial Investments
Dividends Received
Cash Flows from Financing Activities
Proceeds from Borrowings
Repayments of Borrowings
Repayments of Obligations Under
Finance Leases
Dividend Payments
NET CHANGE IN CASH AND CASH
EQUIVALENTS
CASH AND CASH EQUIVALENTS AT
THE BEGINNING OF THE PERIOD
CASH AND CASH EQUIVALENTS AT
THE END OF THE PERIOD
(*)
(*)
Effects of restatement are explained in Note 2, comparative information and restatement of prior period financial statements.
5/29/14 5:43 PM
9
Notes to the Audited Consolidated Financial Statements
1. ORGANIZATION AND OPERATIONS OF THE GROUP
Aselsan Elektronik Sanayi ve Ticaret A.Ş. (the Company) was established in order to engage principally in research,
development, engineering, production, tests, assembly, integration and sales, after sales support, consultancy and
trading activities, to provide and conduct all sorts of activities for project preparation, engineering, consultancy, service
providing, training, contracting, construction, publishing, trading, operation and internet services regarding various
software, equipment, system, tools, material and platforms in the fields of electrical, electronics, microwave, electrooptics, guidance, computer, data processing, encryption, security, mechanics, chemistry and related subjects within the
army, navy, air force and aerospace applications to all institutions, organizations, companies and individual consumers.
The Company was established at the end of 1975 as a corporation by Turkish Land Forces Foundation. The Company
commenced its production activities in Macunköy facilities in early 1979. The Company has been organized in four main
divisions: The Communication and Information Technologies Division (HBT), Radar, Electronic Warfare and Intelligence
Systems (REHİS), Defense Systems Technologies (SST) and Microelectronics, Guidance & Electro-Optics Division
(MGEO) based on the investment and production requirements of projects carried out. The Company carries out its
manufacturing and engineering activities in Macunköy and Akyurt facilities and the Head office is located in Ankara,
Macunköy.
Turkish Armed Forces Foundation (“TAFF”) is the main shareholder of the Company which holds 84,58% of the capital
and maintains control of the Company. TAFF was established on 17 June 1987 with the law number 3388, in order to
manufacture or import guns, equipment and appliances needed for Turkish Armed Forces.
The Company is registered to Capital Markets Board of Turkey (“CMB”) and its shares are quoted in Borsa İstanbul
A.Ş. since 1990. 15,30% of the shares of the Company are publicly held as of 31 December 2013 (31 December 2012:
15,30%) (Note 17).
The Company’s trade registry address is Mehmet Akif Ersoy Mahallesi 296. Cadde No:16 06370 Yenimahalle/Ankara.
The number of personnel employed by the Group as of 31 December 2013 is 5.343 (31 December 2012: 5.088).
The Company, and its consolidated subsidiaries Mikrodalga Elektronik Sistemleri Sanayi ve Ticaret A.Ş. (Mikes) and
AselsanNet Elektronik ve Haberleşme Sistemleri Sanayi Ticaret İnşaat ve Taahhüt Ltd. Şti. (AselsanNet), operating in the
same sector with the Company, are collectively referred as the “Group” in the accompanying notes.
The main operations of the companies included in the consolidation and the share percentage of the Group for these
companies are as follows:
Company name
Mikes (*)
AselsanNet (*)
(*)
Operation
Research and development (R&D)on
microwave projects
Communication systems
31 December 2013
31 December 2012
Share (%)
96,37
100,00
96,36
95,00
The change is due to purchase of shares of Mikes and AselsanNet from Aspilsan A.Ş.
The subsidiaries Mikroelektronik Ar-Ge Tasarım ve Ticaret Limited Şirketi and Aselsan Bakü Şirketi which are classified
as non-current financial assets are excluded from consolidation as their inclusion does not materially affect the
consolidated financial results of the Group (Note 28).
In addition, the Company opened up a branch as “Aselsan Elektronik Sanayi ve Ticaret A.Ş. EP Co.” in 2011 in South
Africa. Branch is excluded from consolidation as its inclusion does not materially affect the consolidated financial results
of the Group.
In addition, the joint ventures IGG Aselsan Integrated Systems LLC (United Arab Emirates) and Kazakhstan Aselsan
Engineering LLP (Kazakhstan) established in 2011 and Aselsan Middle East PSC LTD (Jordan) established in 2012,
which are classified as non-current financial assets are excluded from consolidation as their inclusion does not materially
affect the consolidated financial results of the Group (Note 29).
5/29/14 5:43 PM
10
Approval of the consolidated financial statements:
These consolidated financial statements have been approved for issue by the Board of Directors with the decision
number 802 on 5 March 2014. No authority other than Board of Directors and General Assembly has the right to amend
the consolidated financial statements
2. BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS
2.1 The basis of presentation
Statement of Compliance to TAS
The company and its subsidiaries registered in Turkey, Mikes and AselsanNet maintain their books of account and
prepare their statutory financial statements (“Statutory Financial Statements”) in accordance with accounting principles
in the Turkish Commercial Code (“TCC”) and tax legislation in Turkish Lira (“TL”).
The accompanying financial statements are prepared in accordance with the requirements of Capital Markets Board
(“CMB”) Communiqué Serial II, No: 14.1 “Basis of Financial Reporting in Capital Markets”, which were published in the
Official Gazette No:28676 on 13 June 2013. The accompanying financial statements are prepared based on the Turkish
Accounting Standards/Turkish Financial Reporting Standards and Interpretations (“TAS/TFRS”) that have been put into
effect by the Public Oversight Accounting and Auditing Standards Authority (“POA”) under Article 5 of the Communiqué.
In addition, the financial statements and its notes are presented in accordance with the format requirements as
announced by the CMB’s statement on 7 June 2013.
The consolidated financial statements are prepared according to historical cost accounting except for the revaluation of
lands. In order to determine the historical cost, the fair values paid for assets are considered.
Functional Currency
The individual financial statements of each Group entity are presented in the currency of the primary economic
environment in which the entity operates (its functional currency). For the purpose of the consolidated financial
statements, the results and financial position of each entity are expressed in TL, which is the functional, and presentation
currency of the Company and the reporting currency for the consolidated financial statements.
Preparation of Financial Statements in Hyperinflationary Periods
CMB, with its resolution dated 17 March 2005 declared that companies operating in Turkey which prepare their
financial statements in accordance with CMB Accounting Standards, effective 1 January 2005, will not be subject to
the application of inflationary accounting. Consequently, in the accompanying financial statements TAS 29 “Financial
Reporting in Hyperinflationary Economies” was not applied since 1 January 2005.
Comparative Information and Restatement of Prior Period Financial Statements
Consolidated financial statements of the Group have been prepared comparatively with prior period in order to
give information about financial position and performance trends. If the presentation or classification of the financial
statements is changed, in order to maintain consistency, financial statements of the prior periods are also reclassified
and the significant changes are explained.
As described in Note 2.4, due to the amendments to “TAS 19 - Employee Benefits”, effective for the periods beginning
after 1 January 2013, actuarial gain/losses related to retirement pay obligations are recognized under equity. The Group
adopted the amendments to TAS 19 and comparative amounts are restated retrospectively. The effect of adoption is
explained in Note 2.4.
5/29/14 5:43 PM
11
In addition, the Group has made reclassifications in prior period financial statements in order to comply with the format
issued by CMB on 7 June 2013. The nature and amount for each of the reclassifications are described below:
•“Foreign Currency Exchange Loss” related to Advances Given and Received, Trade Receivables and Payables,
Other Receivables and Payables amounting to TL 232.864.956 which was presented under “Finance Expense” in
the consolidated statement of profit or loss for the year ended 31 December 2012 is reclassified to “Other Operating
Expenses”.
•“Foreign Currency Exchange Gain” related to Advances Given and Received, Trade Receivables and Payables,
Other Receivables and Payables amounting to TL 264.404.392 which was presented under “Finance Income” in the
consolidated statement of profit or loss for the year ended 31 December 2012 is reclassified to “Other Operating
Income”.
•“Interest Income” amounting to TL 12.883.616 and “Other Finance Income” amounting TL 405.720 which was
presented under “Finance Income” in the consolidated statement of profit or loss for the year ended 31 December
2012 is reclassified to “Other Operating Income”.
•“Discount Expense” amounting to TL 3.221.052 which was presented under “Finance Expense” in the consolidated
statement of profit or loss for the year ended 31 December 2012 is reclassified to “Other Operating Expense”.
•“Discount Income” amounting to TL 1.290.165 which was presented under “Finance Income” in the consolidated
statement of profit or loss for the year ended 31 December 2012 is reclassified to “Other Operating Income”.
•“Dividend Income”, “Gain on Sale of Marketable Securities” and “Gain on Financial Assets” amounting to TL 4.191.870
which was presented under “Finance Income” in the consolidated statement of profit or loss for the year ended 31
December 2012 is reclassified to “Income from Investing Activities”.
•“Fair value difference of financial assets reflected to loss” amounting to TL 426.612 “Finance Income” in the
consolidated statement of profit or loss for the year ended 31 December 2012 is reclassified to “Income from Investing
Activities”.
•“Blocked Deposits” amounting to TL 19.361.643 which was presented under “Cash and Cash Equivalents” in the
consolidated balance sheet as of 31 December 2012 is reclassified to “Other Current Assets”.
•“Obligations Under Finance Leases” amounting to TL 93.312 which was presented as “Other Financial Liabilities”
under “Current Liabilities” in the consolidated balance sheet as of 31 December 2012 is reclassified to “Short-term
Portion of Long-term Financial Liabilities”.
•“Obligations Under Finance Leases” amounting to TL 252.761 which was presented as “Other Financial Liabilities”
under “Long-Term Liabilities” in the consolidated balance sheet as of 31 December 2012 is reclassified to “Long-Term
Financial Liabilities”.
•“Prepaid Expenses” amounting to TL 30.939.947 which was presented under “Other Current Assets” in the
consolidated balance sheet as of 31 December 2012 is reclassified as “Prepaid Expenses” under “Current Assets”.
•“Short-Term Advances Given” amounting to TL 233.904.863 which was presented under “Order Advances Given” in
the consolidated balance sheet as of 31 December 2012 is reclassified to “Prepaid Expenses” under “Current Assets”.
•“Prepaid Expenses” and “Advances Given for Tangible and Intangible Fixed Assets” amounting to TL 25.706.640
which was presented under “Other Non-Current Assets” in the consolidated balance sheet as of 31 December 2012 is
reclassified as “Prepaid Expenses” under “Non-Current Assets”.
•“Long-Term Advances Given” amounting to TL 250.406.586 which was presented under “Order Advances Given” in the
consolidated balance sheet as of 31 December 2012 is reclassified to “Prepaid Expenses” under “Non-Current Assets”.
•“Short-Term Portion of Long-Term Financial Liabilities” amounting to TL 564.806 which was presented under “Financial
Liabilities” in the consolidated balance sheet as of 31 December 2012 is presented as a separate line item under
“Current Liabilities”.
•“Payables to Personnel” and “Tax Liabilities due to Personnel” amounting to TL 16.085.066 which was presented under
“Other Payables” in the consolidated balance sheet as of 31 December 2012 is reclassified to “Employee Benefit
Obligations” under “Current Liabilities”.
5/29/14 5:43 PM
12
•“Tax Payables” amounting to TL 3.778.203 which was presented under “Other Payables” in the consolidated balance
sheet as of 31 December 2012 is reclassified to “Other Current Liabilities” under “Current Liabilities”.
•“Deferred Income” amounting to TL 3.026.317 which was presented under “Other Non-Current Liabilities” in the
consolidated balance sheet as of 31 December 2012 is reclassified as “Deferred Income” under “Current Liabilities”.
•“Short-Term Advances Received” and “Long-Term Advances Received” amounting to TL 142.716.946 and TL
1.041.940.108 respectively in the consolidated balance sheet as of 31 December 2012 are reclassified to “Deferred
Income” which are presented under “Current Liabilities” and “Non-Current Liabilities”.
•“Deferred Income” amounting to TL 28.962 which was presented under “Other Non-Current Liabilities” in the
consolidated balance sheet as of 31 December 2012 is reclassified as “Deferred Income” under “Non-Current
Liabilities”.
Financial Income
Current Assets
Prepaid Expenses
Order Advances Given
Non-Current Assets
Prepaid Expenses
Order Advances Given
Current Liabilities
Short-term Portion of Long-term Financial
Liabilities
Financial Liabilities
Other Financial Liabilities
Other Payables
Deferred Income
Order Advances Received
Non-Current Liabilities
Other Financial Liabilities
Deferred Income
Order Advances Received
Other Non-Current Liabilities
Equity
Remeasurement Income/Loss from Defined Benefit
Plans
Previously Reported
26.743.358
(7.515.634)
297.403.835
(246.742.392)
0,59
Previously Reported 31 December 2012 371.895.213
233.904.863
186.181.891
Restated
305.727.251
(243.601.642)
3.765.258
14.228.072
(10.229.772)
0,61
Restated
31 December 2012
352.533.570
264.844.810
174.603.587
250.406.586
28.230.496
276.113.226
2.523.856
-
210.788.558
211.353.364
93.312
20.870.303
142.716.946
3.052.726
658.118
16.085.066
1.007.034
145.743.263
3.804.612
113.764.741
252.761
1.041.940.108
28.962
293.202.668
114.017.502
1.041.969.070
(13.175.916)
306.378.584
5/29/14 5:43 PM
13
Basis of Consolidation
Subsidiaries:
The details of the subsidiaries of the Group are as follows:
Group’s proportion of ownership and
voting power held (%)
31 December 2013
31 December 2012
96,37
96,36
Subsidiaries
Mikes (*)
Location
Turkey
AselsanNet (*)
Turkey
100
95
Aselsan Bakü (**)
Mikroelektronik Ar-Ge
Tasarım ve Tic. Ltd Şti. (**)
Azerbaijan
100
100
85
85
(*)
Turkey
Principal Activity
Microwave R&D projects
Telecommunication
systems
Marketing and sales of
the group products
Microelectronic R&D
projects
The change is due to purchase of shares of Mikes and AselsanNet from Aspilsan A.Ş.
Excluded from group consolidation as it does not significantly affect the consolidated financial results.
(**)
The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the
Company and its subsidiaries. Control is achieved when the Company:
•has power over the investee
•is exposed, or has rights, to variable returns from its involvement with the investee; and
•has the ability to use its power to affect its returns
The Company reassesses whether or not it controls an investee if facts and circumstances indicate that there are
changes to one or more of the three elements of control listed above.
When the Company has less than a majority of the voting rights of an investee, it has power over the investee when the
voting rights are sufficient to give it the practical ability to direct the relevant activities of the investee unilaterally. The
Company considers all relevant facts and circumstances in assessing whether or not the Company’s voting rights in an
investee are sufficient to give it power, including:
•the size of the Company’s holding of voting rights relative to the size and dispersion of holdings of the other vote
holders,
•potential voting rights held by the Company, other vote holders or other parties,
•rights arising from other contractual arrangements; and
•any additional facts and circumstances that indicate the Company has, or does have, the current ability to direct the
relevant activities at the time that decisions need to be made, including voting patterns at previous shareholders’
meeting.
Consolidation of subsidiary begins when the Company obtains control over the subsidiary and ceases when the
Company loses control of the subsidiary. Specifically, income and expenses of a subsidiary acquired or disposed of
during the year are included in the consolidated statement of profit or loss and other comprehensive income from the
date the Company gains control until the date when the Company ceases to control the subsidiary.
Profit or loss and each component of other comprehensive income are attributed to the owners of the Company and to
the non-controlling interests. Total comprehensive income of subsidiaries is attributed to the owners of the Company and
to the non-controlling interests even if results in the non-controlling interests having a deficit balance.
When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into
line with the Group’s accounting policies.
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14
All intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions between members
of the Group are eliminated in full on consolidation.
Interests in joint ventures:
The details of the Group’s interests in joint ventures as of 31 December 2013 and 31 December 2012 are as follows:
Joint Ventures
IGG Aselsan
Integrated
Systems LLC
Kazakhstan
Aselsan
Engineering LLP
Aselsan Middle
East
PSC LTD
Country of incorporation
and operation
UAE
31 December 2013
49
31 December 2012
49
the group products
Kazakhstan
49
49
the group products
Jordan
49
49
Principal Activity
the group products
A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the
net assets of the joint arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which
exists only when decisions about the relevant activities require unanimous consent of the parties sharing control.
IGG Aselsan Integrated Systems LLC and Kazakhstan Aselsan Engineering LLP established in 2011 and Aselsan
Middle East PSC LTD (Jordan) established in 2012, which are classified as non-current financial assets and accounted
with acquiring cost after impairment were not included in the consolidation, have not started operations and their effect
on the consolidated financial statements of the Group are deemed to be immaterial.
2.2 Changes in the Accounting Policies
Significant changes in accounting policies are applied retrospectively and prior period financial statements are restated.
Group’s lands are revalued and presented with their fair values as of 31 December 2013. Revaluation gains on lands are
accounted as fixed assets revaluation reserves under equity. Since the change in accounting policy is considered as
revaluation in accordance with TAS 8, “Accounting Policies, Changes in Accounting Estimates and Errors”, prior period
consolidated financial statements are not restated and change is applied prospectively.
2.3 Changes in the Accounting Estimates and Errors
If estimated changes in accounting policies are for only one period, changes are applied on the current year but if
the estimated changes are for the following periods, changes are applied both on the current and following years
prospectively. The Group has no significant changes to the accounting estimates in the current period.
The estimated errors in the accounting policies are applied retrospectively and the prior year’s financial statements are
restated accordingly.
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15
2.4 New and Revised Turkish Accounting Standards
a) Amendments to TFRSs affecting amounts reported and the disclosures in the financial statements
The following amendments to TASs have been applied in the current year and have affected the amounts reported in
these consolidated financial statements.
Amendments to TAS 1 Presentation of Items of Other Comprehensive Income
TAS1 (Amendments) “Presentation of Items of Other Comprehensive Income” is effective for the annual periods on or
after 1 June 2012. The amendments introduce new terminology for the statement of comprehensive income and income
statement. Under the amendments to TAS 1, the “statement of comprehensive income” is renamed the “statement
of profit or loss and other comprehensive income” and the “income statement” is renamed the “statement of profit or
loss”. The amendments to TAS 1 retain the option to present profit or loss and other comprehensive income in either
a single statement or in two separate but consecutive statements. However, the amendments to TAS 1 require items
of other comprehensive income to be grouped into two categories in the other comprehensive income section: (a)
items that will not be reclassified subsequently to profit or loss and (b) items that may be reclassified subsequently
to profit or loss when specific conditions are met. Income tax on items of other comprehensive income is required to
be allocated on the same basis - the amendments do not change the option to present items of other comprehensive
income either before tax or net of tax. The amendments have been applied retrospectively and hence the presentation
of items of other comprehensive income has been modified to reflect the changes. Other than the above mentioned
presentation changes, the application of the amendments to TAS 1 does not result in any impact on profit or loss, other
comprehensive income and total comprehensive income.
TAS 19 Employee Benefits
The amendments to TAS 19 change the accounting for defined benefit plans and termination benefits. The most
significant change relates to the accounting for changes in defined benefit obligations and plan assets. The
amendments require the recognition of changes in defined benefit obligations and in fair value of plan assets when they
occur, and hence eliminate the “corridor approach” permitted under the previous version of TAS 19 and accelerate the
recognition of past service costs. The amendments require all actuarial gains and losses to be recognized immediately
through other comprehensive income in order for the net pension asset or liability recognized in the consolidated
statement of financial position to reflect the full value of the plan deficit or surplus. Furthermore, the interest cost and
expected return on plan assets used in the previous version of TAS 19 are replaced with a “net-interest” amount, which
is calculated by applying the discount rate to the net defined benefit liability or asset. The amendments to TAS 19
require retrospective application.
Impact on profit or loss of the application of TAS 19:
Profit for the Period
Impact on other comprehensive income
Actuarial income/loss
Tax effect
Change in other comprehensive income
Change in total comprehensive income
Impact on statement of financial position of the application of TAS 19:
Remeasurement income/loss from defined benefit plans
Net profit for period
Change in equity
Prior Period
13.175.916
(16.469.895)
3.293.979
(13.175.916)
-
Prior Period
31 December 2012
(13.175.916)
13.175.916
-
5/29/14 5:43 PM
16
TFRS 13 Fair Value Measurement
TFRS 13 establishes a single source of guidance for fair value measurements and disclosures about fair value
measurements. The Standard defines fair value, establishes a framework for measuring fair value, and requires
disclosures about fair value measurements. The scope of TFRS 13 is broad; it applies to both financial instrument items
and non-financial instrument items for which other TFRSs require or permit fair value measurements and disclosures
about fair value measurements, except in specified circumstances. In general, the disclosure requirements in TFRS 13
are more extensive than those required in the current standards. For example, quantitative and qualitative disclosures
based on the three-level fair value hierarchy required for financial instruments only under TFRS 7 Financial Instruments:
Disclosures are extended by TFRS 13 to cover all assets and liabilities within its scope.
b) New and Revised TFRSs applied with no material effect on the financial statements which are effective since 2013
TAS 1 (Amendments) Presentation of Financial Statements
(As part of the Annual Improvements to TFRSs 2009-2011 Cycle issued in May 2012)
The amendments to TAS 1 as part of the Annual Improvements to TFRSs 2009-2011 Cycle are effective for the annual
periods beginning on or after 1 January 2013.
TAS 1 requires an entity that changes accounting policies retrospectively, or makes a retrospective restatement or
reclassification to present a statement of financial position as at the beginning of the preceding period (third statement
of financial position). The amendments to TAS 1 clarify that an entity is required to present a third statement of financial
position only when the retrospective application, restatement or reclassification has a material effect on the information
in the third statement of financial position and that related notes are not required to accompany the third statement of
financial position.
New and revised Standards on consolidation, joint arrangements, associates and disclosures
In May 2011, a package of five Standards on consolidation, joint arrangements, associates and disclosures was issued,
including TFRS 10, TFRS 11, TFRS 12, TAS 27 (as revised in 2011) and TAS 28 (as revised in 2011).
Key requirements of these five Standards are described below.
TFRS 10 replaces the parts of TAS 27 Consolidated and Separate Financial Statements that deal with consolidated
financial statements. SIC-12 Consolidation - Special Purpose Entities will be withdrawn upon the effective date of
TFRS 10. Under TFRS 10, there is only one basis for consolidation that is control. In addition, TFRS 10 includes a new
definition of control that contains three elements: (a) power over an investee, (b) exposure, or rights, to variable returns
from its involvement with the investee, and (c) the ability to use its power over the investee to affect the amount of the
investor’s return. Extensive guidance has been added in TFRS 10 to deal with complex scenarios.
TFRS 11 replaces TAS 31 Interests in Joint Ventures. TFRS 11 deals with how a joint arrangement of which two or
more parties have joint control should be classified. SIC-13 Jointly Controlled Entities - Non-monetary Contributions by
Venturers will be withdrawn upon the effective date of TFRS 11. Under TFRS 11, joint arrangements are classified as
joint operations or joint ventures, depending on the rights and obligations of the parties to the arrangements. In contrast,
under TAS 31, there are three types of joint arrangements: jointly controlled entities, jointly controlled assets and jointly
controlled operations. In addition, joint ventures under TFRS 11 are required to be accounted for using the equity
method of accounting, whereas jointly controlled entities under TAS 31 can be accounted for using the equity method of
accounting or proportional consolidation.
TFRS 12 is a disclosure standard and is applicable to entities that have interests in subsidiaries, joint arrangements,
associates and/or unconsolidated structured entities. In general, the disclosure requirements in TFRS 12 are more
extensive than those in the current standards.
In June 2012, the amendments to TFRS 10, TFRS 11 and TFRS 12 were issued to clarify certain transitional guidance on
the application of these TFRSs for the first time.
5/29/14 5:43 PM
17
Amendments to TFRS 7 Offsetting Financial Assets and Financial Liabilities and the Related Disclosures
The amendments to TFRS 7 require entities to disclose information about rights of offset and related arrangements (such
as collateral posting requirements) for financial instruments under an enforceable master netting agreement or similar
arrangement.
Annual Improvements to TFRSs 2009 - 2011 Cycle issued in May 2012
•Amendments to TAS 16 Property, Plant and Equipment;
•Amendments to TAS 32 Financial Instruments: Presentation; and
•Amendments to TAS 34 Interim Period Financial Reporting.
Amendments to TAS 16
The amendments to TAS 16 clarify that spare parts, stand-by equipment and servicing equipment should be classified
as property, plant and equipment when they meet the definition of property, plant and equipment in TAS 16 and as
inventory otherwise. The amendments to TAS 16 did not have a significant effect on the Group’s consolidated financial
statements.
The amendments to TAS 32 clarify that income tax relating to distributions to holders of an equity instrument and to
transaction costs of an equity transaction should be accounted for in accordance with TAS 12 Income Taxes. The
amendments to TAS 32 did not have a significant effect on the Group’s consolidated financial statements.
The amendments to TAS 34 clarify that disclosure of the total assets and total liabilities for a particular reportable
segment is only required if a measure of total assets or total liabilities (or both) is regularly provided to the chief
operating decision maker and there has been a material change in those measures since the last annual financial
statements. The amendments to TAS 34 did not have an effect on the Group’s consolidated financial statements.
IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine
IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine applies to waste removal costs that are incurred in
surface mining activity during the production phase of the mine (production stripping costs). Under the Interpretation,
the costs from this waste removal activity (stripping) which provide improved access to ore is recognized as a noncurrent asset (stripping activity asset) when certain criteria are met, whereas the costs of normal on-going operational
stripping activities are accounted for in accordance with TAS 2 Inventories. The stripping activity asset is accounted for
as an addition to, or as an enhancement of, an existing asset and classified as tangible or intangible according to the
nature of the existing asset of which it forms part.
IFRIC 20 is effective for annual periods beginning on or after 1 January 2013. Specific transitional provisions are
provided to entities that apply IFRIC 20 for the first time. However, IFRIC 20 must be applied to production stripping
costs incurred on or after the beginning of the earliest period presented. The Group management anticipates that IFRIC
20 will have no effect to the Group’s financial statements as the Group does not engage in such activities.
5/29/14 5:43 PM
18
c) New and revised TFRSs in issue but not yet effective
The Group has not applied the following new and revised TFRSs that have been issued but are not yet effective:
TFRS 9
Amendments to TFRS 9 and TFRS 7
Amendments to TFRS 10, 11, TAS 27
IFRIC 21
1
Financial Instruments
Mandatory Effective Date of TFRS 9 and Transition Disclosures
Offsetting Financial Assets and Financial Liabilities1
Investment Entities1
Recoverable Amount Disclosures for Non-Financial Assets1
Novation of Derivatives and Continuation of Hedge Accounting1
Levies1
Effective for annual periods beginning on or after 1 January 2014.
TFRS 9 Financial Instruments
TFRS 9, issued in November 2009, introduces new requirements for the classification and measurement of financial
assets. TFRS 9 was amended in October 2010 to include requirements for the classification and measurement of
financial liabilities and for derecognition.
Amendments to TFRS 9 and TFRS 7 Mandatory Effective Date of TFRS 9 and Transition Disclosures
On November 2013, it is tentatively decided that the mandatory effective date of TFRS 9 will be no earlier than annual
periods beginning on or after 1 January 2017. The amendment has not published by POA yet.
Amendments to TAS 32 Offsetting Financial Assets and Financial Liabilities
The amendments to TAS 32 clarify existing application issues relating to the offset of financial assets and financial
liabilities requirements. Specifically, the amendments clarify the meaning of “currently has a legally enforceable right of
set-off” and “simultaneous realization and settlement”.
Amendments to TFRS 10, 11, TAS 27 Investment Entities
This amendment with the additional provisions of TFRS 10 provide investment entities (as defined) an exemption from
the consolidation of particular subsidiaries and instead require that an investment entity measure the investment in each
eligible subsidiary at fair value through profit or loss.
Amendments to TAS 36 Recoverable Amount Disclosures for Non-Financial Assets
As a consequence of TFRS 13 “Fair Value Measurements”, there are amendments in the explanations about the
measurement of the recoverable amount of an impaired asset. This amendment is limited to non-financial assets and
paragraphs 130 and 134 of TAS 36 have been changed.
Amendments to TAS 39 Novation of Derivatives and Continuation of Hedge Accounting
This amendment to TAS 39 makes it clear that there is no need to discontinue hedge accounting if a hedging derivative
is novated, provided certain criteria are met.
IFRIC 21 Levies
IFRIC 21 identifies the obligating event for the recognition of a liability as the activity that triggers the payment of the levy
in accordance with the relevant legislation.
5/29/14 5:43 PM
19
2.5 Summary of Significant Accounting Policies
Revenue
Revenue is measured at the fair value of the received or receivable. Revenue is reduced for estimated customer returns,
rebates, and other similar allowances.
Sale of goods
Revenue from the sale of goods is recognized when all the following conditions are satisfied:
•The Group has transferred to the buyer the significant risks and rewards of ownership of the goods;
•The Group retains neither continuing managerial involvement to the degree usually associated with ownership nor
effective control over the goods sold;
•The amount of revenue can be measured reliably;
•It is probable that the economic benefits associated with the transaction will flow to the entity; and
•The costs incurred or to be incurred in respect of the transaction can be measured reliably.
Rendering of services
Revenue from a contract to provide services is recognized by reference to the stage of completion of the contract. The
stage of completion of the contract is determined as follows:
•Installation fees are recognized by reference to the stage of completion of the installation, determined as the
proportion of the total time expected to install that has elapsed at the balance sheet date,
•Servicing fees included in the price of products sold are recognized by reference to the proportion of the total cost
of providing the servicing for the product sold, taking into account historical trends in the number of services actually
provided on past goods sold and
•Revenue from time and material contracts is recognized at the contractual rates as labor hours are delivered and
direct expenses are incurred.
Revenue from construction contracts is recognized in accordance with the accounting policy outlined in the following
pages.
Dividend and interest revenue
Dividend income from investments is recognized when the shareholder’s right to receive payment has been established
(provided that it is probable that the economic benefits will flow to the Group and the amount of income can be
measured reliably).
Interest income from a financial asset is recognized when it is probable that the economic benefits will flow to the Group
and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the
principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated
future cash receipts through the expected life of the financial asset to that asset’s net carrying amount on initial
recognition.
Rental income
Rental income from properties is recognized on a straight-line basis over the term of the relevant lease.
5/29/14 5:43 PM
20
Inventories
Inventories are stated at the lower of cost and net realizable value. Inventories are valued on the basis of the project
according to the weighted average method. Net realizable value represents the estimated selling price less all estimated
costs of completion and costs necessary to realize sales. When the net realizable value of inventory is less than cost,
the inventory is written down to the net realizable value and the expense is included in statement of income/(loss) in the
period the write-down or loss occurred. When the circumstances that previously caused inventories to be written down
below cost no longer exist or when there is clear evidence of an increase in net realizable value because of changed
economic circumstances, the amount of the write-down is reversed. The reversal amount is limited to the amount of the
original write-down.
Fixed Assets
Lands held for use in the production or supply of goods or services, or for administrative purposes, are stated in the
consolidated statement of financial position at their revalued amounts, being the fair value at the date of revaluation,
less any subsequent accumulated impairment losses. Revaluations are performed with sufficient regularity such that
the carrying amounts do not differ materially from those that would be determined using fair values at the end of each
reporting period.
Any revaluation increase arising on the revaluation of such lands is recognized in revaluation fund accumulated in equity.
A decrease in the carrying amount arising on the revaluation of such land and buildings is recognized in profit or loss to
the extent that it exceeds the balance, if any, held in the properties revaluation reserve relating to a previous revaluation
of that asset.
Freehold land is not depreciated. On the subsequent sale or retirement of a revalued property, the attributable
revaluation surplus remaining in the properties revaluation reserve is transferred directly to retained earnings. Unless the
asset is disposed, no transfer is realized from revaluation reserves to the profit reserves.
Fixed assets other than lands are carried at cost less accumulated depreciation and any accumulated impairment
losses.
Properties in the course of construction for production, rental or administrative purposes, or for purposes not yet
determined, are carried at cost, less any recognized impairment loss. Borrowing cost is capitalized when the assets took
a substantial period of time to get ready for their intended use or sale.
These assets are classified to fixed assets when the assets are completed and ready for their intended use.
Depreciation of these assets, on the same basis as other property assets, commences when the assets are ready for
their intended use.
Depreciation is charged so as to write off the cost or valuation of assets, other than land and properties under
construction, over their estimated useful lives, using the straight-line method. The estimated useful lives, residual values
and depreciation method are reviewed at each year end, with the effect of any changes in estimate accounted for on a
prospective basis.
Assets held under finance leases are depreciated over their expected useful lives on the same basis as owned assets.
If the ownership of the finance lease is not obvious at the end of the leasing period, it is depreciated over their expected
useful lives or, where shorter, the term of the relevant lease.
The gain or loss arising on the disposal or retirement of an item of fixed assets is determined as the difference between
the sales proceeds and the carrying amount of the asset and is recognized in profit or loss.
The maintenance and repair expenses arising from changing any part of the fixed assets can be realized if the
economic benefit of the asset is increased. All other expenses are recorded in the expense accounts in the consolidated
income statement when they are realized.
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The useful lives of fixed assets are as follows:
Buildings
Land improvements
Machinery and equipment
Motor Vehicles
Furniture and fixtures
Other tangible assets
Useful life
10-30 years
13-15 years
4-20 years
4-8 years
2-15 years
5-10 years
Intangible Assets
Intangible assets acquired separately
Intangible assets acquired separately are reported at cost less accumulated amortization and accumulated impairment
losses. Amortization is charged on a straight-line basis over their estimated useful lives. The estimated useful life
and amortization method are reviewed at the end of each annual reporting period, with the effect of any changes in
accounting estimates for on a prospective basis.
Trademarks and licenses
Acquired trademarks and licenses are shown at historical cost. Trademarks and licenses have a finite useful life and are
carried at cost less accumulated amortization. Amortization is calculated using the straight-line method to allocate the
cost of trademarks and licenses over their estimated useful lives.
Computer software
Acquired computer software licenses are capitalized on the basis of the costs incurred to acquire and bring to use the
specific software. These costs are amortized over their estimated useful lives.
Internally generated intangible assets - R&D expenditure
Expenditure on research activities is recognized as an expense in the period in which it is incurred.
An internally-generated intangible asset arising from development (or from the development phase of an internal project)
is recognized if, and only if, all of the following have been demonstrated:
•The technical feasibility of completing the intangible asset so that it will be available for use or sale,
•The intention to complete the intangible asset and use or sell it,
•The ability to use or sell the intangible asset,
•How the intangible asset will generate probable future economic benefits,
•The availability of adequate technical, financial and other resources to complete the development and to use or sell
the intangible asset; and
•The ability to measure reliably the expenditure attributable to the intangible asset during its development.
The amount initially recognized for internally-generated intangible assets is the sum of expenditure incurred from the
date when the intangible asset first meets the recognition criteria listed above. Where no internally-generated intangible
asset can be recognized, development expenditure is charged to profit or loss in the period in which it is incurred.
Subsequent to initial recognition, internally-generated intangible assets are reported at cost less accumulated
amortization and accumulated impairment losses, on the same basis as intangible assets acquired separately.
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The useful lives of the intangible assets are as follows:
Rights
Computer software
Development expenditures
Useful life
2-6 years
1-2 years
1-5 years
Impairment of Assets
Assets that have an indefinite useful life, for example goodwill, are not subject to amortization and are tested annually
for impairment. Assets that are subject to amortization are reviewed for impairment whenever events or changes in
circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the
amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of
an asset’s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at
the lowest levels for which there are separately identifiable cash flows (cash-generating units). Non-financial assets other
than goodwill that suffered impairment are reviewed for possible reversal of the impairment at each reporting date.
Borrowing Costs
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets
that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of
those assets, until such time as the assets are substantially ready for their intended use or sale.
When the Group borrows funds specifically for the purpose of the qualifying assets, the amount of borrowing costs
eligible for capitalization is the actual borrowing costs incurred on that borrowing during the period less any investment
income on the temporary investment of those borrowings.
Financial Instruments
Financial assets
All financial assets are recognized and derecognized on a trade date where the purchase or sale of a financial asset
is under a contract whose terms require delivery of the financial asset within the timeframe established by the market
concerned, and are initially measured at fair value, plus transaction costs except for those financial assets classified as
at fair value through profit or loss, which are initially measured at fair value.
Financial assets are classified into the following specified categories: financial assets as “at fair value through profit or
loss” (FVTPL), “held-to-maturity investments”, “available-for-sale” (AFS) financial assets and “loans and receivables”.
The classification depends on the nature and purpose of the financial assets and is determined at the time of initial
recognition.
Effective interest method
The effective interest method is a method of calculating the amortized cost of a financial asset and of allocating interest
income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash
receipts through the expected life of the financial asset, or, where appropriate, a shorter period to the net carrying
amount on initial recognition.
Income is recognized on an effective interest basis for debt instruments other than those financial assets designated as
at FVTPL.
Financial assets at FVTPL
Financial assets at fair value through profit or loss are financial assets held for trading. A financial asset is classified
in this category if acquired principally for the purpose of selling in the short-term. Derivatives are also categorized as
FVTPL unless they are designated as hedges.
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Available-for-sale financial assets
Quoted equity investments and quoted certain debt securities held by the Group that are traded in an active market are
classified as being available- for-sale financial assets and are stated at fair value. The Group also has investments in
unquoted equity investments that are not traded in an active market but are also classified as available-for-sale financial
assets and stated at cost since their value can’t be reliably measured. Gains and losses arising from changes in fair
value are recognized in other comprehensive income and accumulated in the investments revaluation reserve with the
exception of impairment losses, interest calculated using the effective interest method, and foreign exchange gains and
losses on monetary assets, which are recognized in profit or loss. Where the investment is disposed of or is determined
to be impaired, the cumulative gain or loss previously accumulated in the investments revaluation reserve is reclassified
to profit or loss.
Dividends on available-for-sale equity instruments are recognized in profit or loss when the Group’s right to receive the
dividends is established.
The fair value of available-for-sale monetary assets denominated in a foreign currency is determined in that foreign
currency and translated at the spot rate at the end of the reporting period. The foreign exchange gains and losses
that are recognized in profit or loss are determined based on the amortized cost of the monetary asset. Other foreign
exchange gains and losses are recognized in other comprehensive income.
Loans and receivables
Trade receivables, loans, and other receivables that have fixed or determinable payments that are not quoted in an
active market are classified as “loans and receivables”. Loans and receivables are measured at amortized cost using
the effective interest method less any impairment
Impairment of financial assets
Financial assets, other than those at FVTPL, are assessed for indicators of impairment at each reporting period.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred
after the initial recognition of the financial asset, the estimated future cash flows of the investment have been impacted.
For financial assets carried at amortized cost, the amount of the impairment is the difference between the asset’s
carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate.
The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets with the
exception of trade receivables where the carrying amount is reduced through the use of an allowance account.
When a trade receivable is uncollectible, it is written off against the allowance account. Subsequent recoveries of
amounts previously written off are credited against the allowance account. Changes in the carrying amount of the
allowance account are recognized in profit or loss.
With the exception of AFS equity instruments, if, in a subsequent period, the amount of the impairment loss decreases
and the decrease can be related objectively to an event occurring after the impairment was recognized, the previously
recognized impairment loss is reversed through profit or loss to the extent that the carrying amount of the investment at
the date the impairment is reversed does not exceed what the amortized cost would have been had the impairment not
been recognized. Any increase in fair value subsequent to an impairment loss is recognized in equity directly.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and demand deposits, and other short-term highly liquid
investments which their maturities are three months or less from date of acquisition and that are readily convertible to a
known amount of cash and are subject to an insignificant risk of changes in value.
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Financial Liabilities
Financial liabilities and equity instruments issued by the Group are classified according to the substance of the
contractual arrangements entered into and the definitions of a financial liability and an equity instrument. An equity
instrument is any contract that evidences a residual interest in the assets of the Group after deducting all of its liabilities.
The accounting policies adopted for specific financial liabilities and equity instruments are set out below.
Financial liabilities are classified as either financial liabilities at FVTPL or other financial liabilities.
Financial liabilities at FVTPL
Financial liabilities at FVTPL are stated at fair value and revalued at each balance sheet date. The change of fair value
is recognized in profit or loss. The net gain or loss recognized in profit or loss incorporates any interest paid on the
financial liability.
Other financial liabilities
Other financial liabilities, including borrowings, are initially measured at fair value, net of transaction costs.
Other financial liabilities are subsequently measured at amortized cost using the effective interest method, with interest
expense recognized on an effective yield basis.
The effective interest method is a method of calculating the amortized cost of a financial liability and of allocating interest
expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash
payments through the expected life of the financial liability, or, where appropriate, a shorter period to the net carrying
amount on initial recognition.
Leasing
Leasing- the group as lessor
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of
ownership to the lessee. All other leases are classified as operating leases.
Amounts due from lessees under finance leases are recorded as receivables at the amount of the Group’s net
investment in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic
rate of return on the Group’s net investment outstanding in respect of the leases.
Rental income from operating leases is recognized on a straight-line basis over the term of the relevant lease. Initial
direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased
asset and recognized on a straight-line basis over the lease term.
Foreign Currency Transactions
The individual financial statements of each Group entity are presented in the currency of the primary economic
environment in which the entity operates (its functional currency). For the purpose of the consolidated financial
statements, the operational results and financial position of each entity are expressed in TL, which is the functional
currency of the Company, and the presentation for consolidated financial statements.
In preparing the financial statements of the individual entities, transactions in currencies other than TL (foreign
currencies) are recorded at the rates of exchange prevailing on the dates of the transactions. At each balance sheet
date, monetary items denominated in foreign currencies are retranslated at the rates prevailing on the balance sheet
date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates
prevailing on the date when the fair value was determined. Non-monetary items that are measured in terms of historical
cost in a foreign currency are not retranslated.
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Exchange differences are recognized in profit or loss in the period in which they arise except for:
•Exchange differences which relate to assets under construction for future productive use, which are included in the
cost of those assets where they are regarded as an adjustment to interest costs on foreign currency borrowings;
•Exchange differences on transactions entered into in order to hedge certain foreign currency risks (see below for
hedging accounting policies); and
•Exchange differences on monetary items receivable from or payable to a foreign operation for which settlement
is neither planned nor likely to occur, which form part of the net investment in a foreign operation, and which
are recognized in the foreign currency translation reserve and recognized in profit or loss on disposal of the net
investment.
Earnings per Share
Earnings per share, disclosed in the consolidated income statement, are determined by dividing the net income
attributable to equity holders of the parent by the weighted average number of shares outstanding during the period
concerned.
In Turkey, companies can increase their share capital by distributing “bonus shares” to shareholders from retained
earnings. In computing earnings per share, such “bonus share” distributions are assessed as issued shares.
Accordingly, the weighted average number of shares is computed by taking into consideration of the retrospective
effects of the share distributions.
Events After the Reporting Periods
Events after the reporting periods include all events that take place between the balance sheet date and the date of
authorization for the release of the financial statements, although the events occurred after the announcements related to
the net profit/loss or even after the public disclosure of other selective financial information.
In the case that events occur requiring an adjustment, the Group adjusts the amount recognized in its consolidated
financial statements to reflect the adjustments after the balance sheet date.
Provisions, Contingent Liabilities and Contingent Assets
Provisions are recognized when the Group has a present obligation as a result of a past event, and it is probable that the
Group will be required to settle that obligation, and a reliable estimate can be made of the amount of the obligation.
The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation
at the balance sheet date, taking into account the risks and uncertainties surrounding the obligation.
Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the
present value of those cash flows.
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party,
the receivable is recognized as an asset if it is virtually certain that reimbursement will be received and the amount of the
receivable can be measured reliably.
Segmental Information
Operations of the Group are technical system design, development, production, and after-sales services for various
products for defense industry. Group’s operates mainly for the Ministry of Defense via Communication and Information
Technologies (HBT), Defense System Technologies (SST), Radar Electronic Warfare and Intelligence Systems
(REHİS), Microelectronics, Guidance and Electro-optics (MGEO). The Group does not report segmental information in
accordance with TFRS 8 “Operating Segments” considering the operations and organizational structure not reporting
according to segments due to its nature of products and services, its customer segment or type for its products and
services, not having a profit based reporting structure and having project based reporting structure to the Board of
Directors based on contracts not segments. The operations of the groups generally determined according to the volume
of orders at the group level rather than specific planning at group’s level. Due to the level of orders new groups may be
established in order to increase the management activities.
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Construction Contracts
Cost of contracts is recognized when incurred. These costs include the costs that relate directly to the specific contract
and the costs that are attributable to contract activity in general and can be allocated to the contract and the other costs
that are specifically chargeable to the customer under the terms of the contract. A major part of the costs include the
development expenses of the projects.
Where the outcome of a construction contract cannot be estimated reliably, revenue is recognized to the extent of
contract costs incurred that it is probable will be recoverable.
Where the outcome of a construction contract can be estimated reliably, revenue is recognized over the terms of the
contract term. When it is probable that total contract costs will exceed total contract revenue, the expected loss is
recognized as an expense immediately.
Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured
reliably and its receipt is considered probable.
The Group uses the “percentage-of-completion method” to determine the appropriate amount to recognize in a given
period. The stage of completion is measured by reference to the contract costs incurred up to the balance sheet date as
a percentage of total estimated costs for each contract. Costs incurred in the year in connection with future activity on
a contract are excluded from contract costs in determining the stage of completion. They are presented as inventories,
prepayments or other assets, depending on their nature.
Each project contract is evaluated by the technical teams regarding the expected change in the upcoming costs and
the profitability of the contracts that is determined as of the balance sheet dates. If purchases and collections made by
more than one currency regarding a contract, then the upcoming purchasing and invoicing is forecasted based on the
amount stated in the contract and the weighted average currency in the following financial years. Besides the amounts
of the contracts subjected to escalation as of the balance sheet date, are estimated based on the contract details.
Government grants, if any, are also taken into consideration while calculating the profitability of the contract. The
grants are recognized by netting-off from the costs in accordance with TAS 20 “Accounting for Government Grants and
Disclosure of Government Assistance”.
The Group presents the amount as an asset if the gross amount due from customers for customer work for all contracts
in progress for which costs incurred plus recognized profits (less recognized losses) exceed progress billings. Progress
billings not yet paid by customers and retention are included within “Trade Receivables”.
The Group presents the amount as a liability if the gross amount due to customers for contract work for all contracts in
progress for which progress billings exceed costs incurred plus recognized profits (less recognized losses).
Government Grants
Government grants are not recognized until there is reasonable assurance that the Group will comply with the conditions
attaching to them and that the grants will be received.
Government grants are recognized in profit or loss on a systematic basis over the periods in which the Group recognizes
as expenses the related costs for which the grants are intended to compensate. Specifically, government grants whose
primary condition is that the Group should purchase, construct or otherwise acquire non-current assets are recognized
as deferred revenue in the consolidated statement of financial position and transferred to profit or loss on a systematic
and rational basis over the useful lives of the related assets.
Government grants that are receivable as compensation for expenses or losses already incurred or for the purpose of
giving immediate financial support to the Group with no future related costs are recognized in profit or loss in the period
in which they become receivable.
The benefit of a government loan at a below-market rate of interest is treated as a government grant, measured as the
difference between proceeds received and the fair value of the loan based on prevailing market interest rates.
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Taxes Calculated on the Basis of the Company’s Earnings
Turkish tax legislation does not permit a parent company and its subsidiary to file a consolidated tax return. Therefore,
provisions for taxes, as reflected in the accompanying consolidated financial statements, have been calculated on a
separate-entity basis.
Income tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the
income statement because it excludes items of income or expense that are taxable or deductible in other years and it
further excludes items that are never taxable or deductible. The Group’s liability for current tax is calculated using tax
rates that have been enacted or substantively enacted by the balance sheet date.
Deferred tax
Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the
financial statements and the corresponding tax bases which are used in the computation of taxable profit. Deferred
tax liabilities are generally recognized for all taxable temporary differences and deferred tax assets are recognized for
all deductible temporary differences to the extent that it is probable that taxable profits will be available against which
those deductible temporary differences can be utilized. Such deferred tax assets and liabilities are not recognized if the
temporary difference arises from goodwill or from the initial recognition (other than in a business combination) of other
assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.
Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries
and associates, and interests in joint ventures, except where the Group is able to control the reversal of the temporary
difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets
arising from deductible temporary differences associated with such investments and interests are only recognized to the
extent that it is probable that there will be sufficient taxable profits against which to utilize the benefits of the temporary
differences and they are expected to reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is
no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the
liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively
enacted by the balance sheet date. The measurement of deferred tax liabilities and assets reflects the tax
consequences that would follow from the manner in which the Group expects, at the reporting date, to recover or settle
the carrying amount of its assets and liabilities.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against
current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Group intends to
settle its current tax assets and liabilities on a net basis.
Current and deferred tax for the period
Current and deferred tax are recognized as an expense or income in profit or loss, except when they relate to items that
are recognized outside profit or loss (whether in other comprehensive income or directly in equity), in which case the tax
is also recognized outside profit or loss, or where they arise from the initial accounting for a business combination. In the
case of a business combination, the tax effect is taken into account in calculating goodwill or determining the excess
of the acquirer’s interest in the net fair value of the acquirer’s identifiable assets, liabilities and contingent liabilities
overcost.
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Employee Benefits
Termination and retirement benefits:
Under Turkish law and union agreements, lump sum payments are made to employees retiring or involuntarily leaving
the Group. Such payments are considered as being part of defined retirement benefit plan as per TAS 19 “Employee
Benefits” (“TAS 19”).
The retirement benefit obligation recognized in the consolidated financial statements represents the present value of the
defined benefit obligation.
The actuarial gains and losses are recognized in other comprehensive income.
Dividend and bonus plans
The Group recognizes a liability and an expense for bonuses and dividend, based on a formula that takes into
consideration the profit attributable to the Company’s shareholders after certain adjustments. The Group recognizes a
provision where contractually obliged or where there is a past practice that has created a constructive obligation.
The Group recognizes the cost of providing additional retirement bonuses comprising two months gross salary
to employees who have completed twenty years of service and earned the right to retirement benefits. These
compensations are deducted from the net present values of the unrealized liability amounts and are recognized in the
accompanying consolidated financial statements.
Statement of Cash Flows
Current period statements of cash flows are categorized and reported as operating, investing and financing.
Cash flows from operating activities reflect cash flows generated from Group’s operating activities.
Cash flows from investing activities summarize the Group’s cash flows used in or generated from investing activities
(fixed and financial investments).
Cash flows from investing activities summarize the Group’s cash flows from liabilities and repayments of these liabilities
benefited in financing needs of the Group.
Cash and cash equivalents comprise cash on hand and demand deposits and other short-term highly liquid investments
which their maturities are 3 months or less from date of acquisition and that are readily convertible to a known amount of
cash and are subject to an insignificant risk of changes in value.
Netting-off
Financial assets and liabilities are disclosed with their net amounts in the balance sheet if there is a legal right to net-off
or recoverability is possible, or if acquisition of asset and performance of obligation are realized simultaneously.
Non-Current Assets Held for Sale
Non-current assets are classified as assets “held for sale” when their carrying amount is to be recovered principally
through a sale transaction and a sale is considered highly probable. They are stated at the lower of carrying amount and
fair value less costs to sell. The assets can be a part of the Group, disposal group as a single fixed asset.
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2.6 Critical Accounting Judgments and Estimates
Critical judgments in applying the entity’s accounting policies
In the process of applying the entity’s accounting policies, which are described in note 2.5, management has made the
following judgments that have the most significant effect on the amounts recognized in the financial statements:
Deferred tax
Deferred tax assets and liabilities are recorded using substantially enacted tax rates for the effect of temporary
differences between book and tax bases of assets and liabilities. Currently, there are deferred tax assets resulting
from operating loss carry-forwards and deductible temporary differences, all of which could reduce taxable income
in the future. Based on available evidence, both positive and negative, it is determined whether it is probable that all
or a portion of the deferred tax assets will be realized. The main factors which are considered include future earnings
potential; cumulative losses in recent years; history of loss carry-forwards and other tax assets expiring; the carryforward period associated with the deferred tax assets; future reversals of existing taxable temporary differences; taxplanning strategies that would, if necessary, be implemented, and the nature of the income that can be used to realize
the deferred tax asset. If based on the weight of all available evidence, it is the Group’s belief that taxable profit will not
be available sufficient to utilize some portion of these deferred tax assets, then some portion of or all of the deferred tax
assets are not recognized (Note 26).
Liabilities with respect to employment benefits
The Group makes various assumptions on discount, inflation rate, wage increase rate, the probability of quitting
voluntarily for calculating provisions for severance and retirement pays (Note 15).
Useful lives of tangible and intangible assets
The Group amortizes the non-current assets based on the useful lives of those assets stated in the accounting policies
(Note 9-10).
Percentage of completion
The Group uses the percentage of completion method in accounting for contracts in accordance with TAS 11
“Construction Contracts”. Use of percentage of completion method requires the Group to estimate the services
performed to date as a proportion of the total services to be performed. Moreover for projects that are estimated to
end up with a loss, provision for loss is calculated (Note 19). The estimation of the total cost of the projects consists of
the risks that may cause major changes in the adjustments of the fair values of assets and liabilities for the subsequent
periods.
Estimation of foreign exchange rates
If purchases and collections made by more than one currency regarding the projects, in accordance with TAS 11 the
upcoming purchasing and invoicing is forecasted based on the amount stated in the contract and the weighted average
currency in the following financial years.
Escalation
As of the balance sheet dates, the amounts of the projects subject to escalation are calculated with respect to the
provisions of the contracts and estimated in accordance with TAS 11 “Construction Contracts”.
Provision for guarantee expenses
The Group calculates provision, according to the budgeted estimations for specific parts of the sales under the scope
of warranty that needs specific guarantee calculations, and according to the realizations in previous years for the
remaining part of the sales. The guarantee period for the projects completed by the Group are 2 years on the average
after the delivery (Note 13).
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Development expenses
As of balance sheet dates, the Management assess the recoverability of the expenses regarding the Group’s
development activities. These expenses are started to be amortized with respect to their useful lives when their
development phases are completed and it becomes probable that there is an associated economic benefit. When
the development phase is completed and no economic benefit is foreseen, the related expenses are recognized in
consolidated income statement (Note 10).
3. INTERESTS IN OTHER ENTITIES
a) Subsidiaries
Details of the Group’s material subsidiaries as of 31 December 2013 and 31 December
2012 are as follow:
Name of Subsidiary
Mikes
Place of incorporation
and operation
Turkey
AselsanNet
31 December 2013
96,37
31 December 2012
96,36
Turkey
100
95
Aselsan Bakü
Azerbaijan
100
100
Mikroelektronik Ar-Ge
Tasarım ve Tic. Ltd Şti.
Turkey
85
85
Principal Activity
R&D on microwave
projects
Communication
systems
Marketing and
sales of group
products
R&D on
microelectronic
projects
Composition of the Group
Explained in Note 1.
Change in the Group’s ownership interest in a subsidiary:
Group purchased 5% and 0,01% shares of AselsanNet and Mikes respectively and increased its shares in subsidiaries
to 100% and 96,37% respectively.
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31
b) Joint Ventures
Where a Group entity undertakes its activities under joint venture arrangements directly, the Group’s share of jointly
controlled assets and any liabilities incurred jointly with other ventures are recognized in the financial statements of the
relevant entity and classified according to their nature. Liabilities and expenses incurred directly in respect of interests
in jointly controlled assets are accounted for on an accrual basis. Income from the sale or use of the Group’s share of
the output of jointly controlled assets, and its share of joint venture expenses, are recognized when it is probable that
the economic benefits associated with the transactions will flow to/from the Group and their amount can be measured
reliably.
The joint ventures IGG Aselsan Integrated Systems LLC and Kazakhstan Aselsan Engineering LLP established in
2011 and Aselsan Middle East PSC LTD (Jordan) established in 2012,which are recorded under long-term financial
investments, were excluded from the consolidation and as they do not significantly affect the consolidated results of the
Group.
4. RELATED PARTY TRANSACTIONS
Transactions between the Company and its subsidiaries which are related parties of the Company have been eliminated
on consolidation, and are not disclosed in this note.
The receivables from related parties usually arise from sales activities and are due 3 months after the date of sales. The
receivables are unsecured by nature and bear no interest.
The payables to related parties usually arise from the purchase activities and are due 3 months after the date of
purchase. The receivables bear no interest.
The other receivables from related parties usually arise from fund transfers for financing activities and are due 3 months.
The receivables bear an interest of a range between 3,8%-4,8% (2012: 3,8%-4,8%)
Total amount of salaries and other short-term benefits paid for key management year ended as of 31 December 2013 is
TL 4.555.169 (31 December 2012: TL 4.356.770).
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The details of transactions between the Group and other related parties are disclosed below:
Balances with related parties
Main Shareholder
Türk Silahlı Kuvvetlerini Güçlendirme Vakfı
Other shareholder
Axa Sigorta A.Ş.
Main shareholder’s subsidiaries and associates
Esdaş-Elektronik Sis. Destek San. ve Tic. A.Ş.
Havelsan Ehsim-Elektronik Harp Sis. Müh. Tic. A.Ş.
Havelsan Hava Elektronik San. ve Tic. A.Ş.
Havelsan Teknoloji Radar San. ve Tic. A.Ş.
İşbir Elektrik San. A.Ş.
Mercedes-Benz Türk A.Ş.
Netaş Telekomünikasyon A.Ş.
STM-Savunma Teknolojileri Müh. ve Tic. A.Ş.
Tusaş-Türk Havacılık ve Uzay San. A.Ş.
Subsidiaries
Aselsan Bakü
Mikroelektronik Ar-Ge Tas. ve Tic. Ltd. Şti.
Affiliates
Aspilsan-Askeri Pil San. ve Tic. A.Ş.
Roketsan-Roket San. ve Tic. A.Ş.
Branch
Aselsan South Africa
Joint ventures and its related parties
International Golden Group
IGG Aselsan Integrated Systems
Kazakhstan Aselsan Engineering -KAE
Aselsan Middle East PSC Ltd
31 December 2013
Receivables
Short-term
Trading 3.207.644
- Non-trading
-
-
- - 21.239
4.757.070
2.779.311
11.315.342
1.017.379
682.547
75.791
1.601.645
72.094
3.342.557
9.519.270
-
-
16.312
-
1.260.456
-
19.158.362
37.567
6.035.892
-
Advances given
55.710.667
2.980.497
38.899.450
6.311.145
145.157.039 792.439 2.321.156
26.758.793 90.646
32.680.623
32.771.269 5/29/14 5:43 PM
33
31 December 2013
Receivables
Long-term
Advances
Trading
given -
-
- - Payables
Trading 1.948 Short-term
Advances
received 43.306
- Non-trading 30.320 Long-term
Advances
Trading
received
-
-
- -
1.513.701
435.006
698.852
9.428.841
957.570
-
44.899
503.104
659.529
1.193.994
8.435.774
1.114.573
10.643.377
889.434
-
-
1.545.427
4.164.209
332.402
-
-
-
-
-
-
-
15.490.970
168.352.153
717.378
3.594.606
1.635.803
-
-
32.092.157
-
-
-
-
-
-
-
8.617.662
3.146
26.392.887 ASELSAN_FR13ENG_01-136.indd 33
179.437.416 16.265.805 13.211.920 30.320 - 37.801.793
5/29/14 5:43 PM
34
Balances with related parties
Main Shareholder
Other shareholder
Axa Sigorta A.Ş.
Havelsan Ehsim-Elektronik Harp Sis. Müh. Tic. A.Ş.
TEI-Tusaş Motor Sanayii A.Ş.
Subsidiaries
Aselsan Bakü
Affiliates
Branch
Kazakhstan Engineering
Due to Shareholders
31 December 2012
Receivables
Short-term
Trading 2.652.615
Advances given
-
Non-trading
-
-
-
1.825.040
5.022.873
9.281
757.203
1.031.268
261.616
1.776.615
143.301
4.834.484
5.706.896
-
-
498.585
213.082
29.052
-
7.038.093
37.567
984.640
-
-
1.075.590
217.870
36.420.132
3.310.192
5.913.838
3.307.390
66.211.121
779.955
17.418.187
18.512.763
18.730.633
-
5/29/14 5:43 PM
35
31 December 2012
Receivables
Long-term
Advances
Trading
given -
Payables
Trading -
Short-term
Advances
received 189.665
Non-trading -
Long-term
Advances
Trading
received
43.306
-
-
7.227
-
24.707
-
-
7.014.713
-
1.046.719
1.385.373
799.777
-
44.018
214.766
1.977.477
13.511.571
1.491.322
57.434
-
175.883
1.857.699
-
-
1.639.370
-
4.245.160
5.097.320
-
-
227.366
428.086
-
-
-
-
-
1.287.037
195.402.948
254.559
8.972.549
7.764.378
-
-
36.664.202
-
-
-
-
-
-
-
19.330.573
3.147
27.635.470
1.540.834
200.403.017
12.135.245
9.897.456
48.991.710
366.865
10.354.490
155.495
180.202
1.639.370
98.772
46.148.760
5/29/14 5:43 PM
36
Transactions with related parties
Main Shareholder
Purchases Purchases
524.580
483.480
321.830
1.419.045
Havelsan Ehsim-Elektronik Harp Sis. Müh. Tic. A.Ş. 842.420
259.481
2.889.537
54.964
3.169.534
2.938.233
3.485.237
6.509.423
1.845.996
819.989
21.888.888
26.313.915
279.636
5.426.465
164.993
449.474
Subsidiaries
Aselsan Bakü
340.281
890.871
4.280.597
2.445.126
Affiliates
2.733.635
3.367.103
60.542.851
98.600
3.668.989
1.680.721
Branch
KADDB Investment Group PSC
2.707.606
-
2.868
1.293.716
-
23.566
1.745.790
-
111.435.268
54.474.172
5/29/14 5:43 PM
37
Transactions with related parties
Main Shareholder
TEI-Tusaş Motor Sanayii A.Ş.
Subsidiaries
Aselsan Bakü
Affiliates
Heaş-Havaalanı İşletme ve Havacılık End. A.Ş.
Kazakhstan Engineering
Due from related parties
31 December 2013
Joint Ventures
Branch
Due from related parties
31 December 2012
Joint Ventures
Branch
Sales Sales
4.782.175
5.885.442
18.988
19.666.170
8.095
18.701.468
39.818.362
-
10.021
48.246.751
5.434
36.500
598
10.168.111
24.796.467
7.865
121.294
199.091
672.166
180.578
76.253.422
131.600
4.196
66.689.047
27.067.397
1.084.717
53.981.448
12.612.298
254.314.925
85.881.968
3.281.101
11.863.198
12.184.351
3.147
270.048.541
Maturity
Interest
Rate (%)
Currency
TL
Equivalent
January 2014
3,8-4,41
USD
32.680.623
January 2014
4,76
ZAR
90.646
32.771.269
Maturity
Interest
Rate (%)
Currency
TL
Equivalent
January 2013
3,8-4,41
USD
18.512.763
January 2013
4,76
ZAR
217.870
18.730.633
The amount of the letter of credit given in favor of subsidiary included in consolidation Mikes A.Ş. is TL 53.357.500 (31 December 2012: TL 44.565.000) (Note 14).
The amount of the letter of credit given in favor of subsidiary not included in consolidation Mikroelektronik Ar-Ge Tas. ve
Tic. Ltd. Şti. is TL 988.000 (31 December 2012: TL 438.000) (Note 14).
5/29/14 5:43 PM
38
5. TRADE RECEIVABLES AND PAYABLES
a) Trade receivables
Details of Group’s trade receivables are as follows:
Short-term trade receivables
Trade receivables
Receivables from related parties (Note 4)
Uninvoiced receivables from construction contracts in
progress
progress - Related party (Note 4)
Notes receivables
Discount on trade and notes receivables (-)
Other trade receivables
Provision for doubtful trade receivables (-)
Long-term trade receivables
Trade receivables
Trade receivables from related parties (Note 4)
progress
progress - Related party (Note 4)
Notes Receivables
Discount on trade and notes receivables (-)
31 December 2013
31 December 2012
455.002.013
144.530.836
306.241.128
58.410.923
157.715.412
152.893.028
626.203
2.019.535
(1.458.796)
33.088
(2.221.896)
756.246.395
7.800.198
2.131.621
(1.127.796)
4.901
(1.985.839)
524.368.164
31 December 2013
31 December 2012
48.386.358
564.224
22.413.157
2.714.378
265.534.652
197.078.422
25.828.663
(1.577.190)
338.736.707
24.921.092
373.698
(383.347)
247.117.400
The movement for the Group’s provision for doubtful receivables is as follows:
Opening balance
Provision for the period
Provision released
Closing balance
1 January-31 December 2013 1 January-31 December 2012
1.985.839
2.056.726
236.914
857
(857)
(71.744)
2.221.896
1.985.839
The distribution of trade receivables is as follows:
Receivables from the public sector
Receivables from the private sector
Receivables from companies operating abroad
Total
31 December 2013
561.853.149
266.514.035
266.615.918
1.094.983.102
31 December 2012
488.005.407
144.438.253
139.041.904
771.485.564
Receivables from public sector represent the receivables that are due from Ministry of Defense, Undersecretariat
for Defense Industries and other public enterprises. The Group’s operations are based on contracts. Generally, no
collaterals are obtained from the customers.
The characteristics and level of risks with respect to the trade receivables are disclosed in Note 29.
5/29/14 5:43 PM
39
b) Trade payables
Details of Group’s trade receivables are as follows:
Short-term trade payables
Trade payables
Payables related to construction contracts in progress
Payables related to construction contracts in
progress- Related party (Note 4)
Due to related parties (Note 4)
Notes payables
Discount on trade and notes payables (-)
Other trade payables
Long-term trade payables
Trade payables
- Related party (Note 4)
Notes payables (*)
Discount on trade and notes payable (-)
(*)
31 December 2013
31 December 2012
279.899.705
90.119.079
163.064.174
83.664.782
1.466.911
14.798.894
6.748.296
(1.729.224)
2.144.441
393.448.102
32.486.209
16.505.501
34.412
(641.475)
478.457
295.592.060
31 December 2013
31 December 2012
6.141.424
842.181
7.557.931
1.921.135
6.262.069
(1.082.298)
12.163.376
1.639.370
(103.683)
11.014.753
31 December 2013
31 December 2012
42.557.843
32.771.269
348.801
5.835.083
81.512.996
21.397.392
18.730.633
256.502
2.323.390
42.707.917
31 December 2013
197.085
31 December 2012
176.799
Consists of notes payable given for the land acquired in Başkent Organized Industrial Zone.
6. OTHER RECEIVABLES AND PAYABLES
a) Other receivables
Other current receivables
Receivables from tax office(*)
Other receivables from related parties (Note 4)
Deposits and guarantees given
Other
(*)
Due to VAT returns and which are expected to be offset in the subsequent period.
Other non-current receivables
Deposits and guarantees given
5/29/14 5:43 PM
40
b) Other payables
Other current payables
Other current payables
Deposits and guarantees received
Other current payables due to related parties (Note 4)
Due to shareholders (Note 4)
Other non-current payables
Deposits and guarantees received
31 December 2013
31 December 2012
393.947
24.114
30.320
448.381
812.571
14.261
24.707
155.495
1.007.034
31 December 2013
30.518
31 December 2012
20.326
31 December 2013
332.256.254
222.874.833
41.372.762
12.804.786
7.007.692
37.585.022
(8.051.806)
645.849.543
31 December 2012
337.325.150
155.786.545
37.023.242
12.614.279
11.754.173
38.518.041
(8.198.536)
584.822.894
7. INVENTORIES
Raw materials
Work in progress
Finished goods
Other inventories
Trade goods
Goods in transit (*)
Allowance for impairment on inventories (-)
(*)
Goods in transit includes the goods for which significant risks and rewards of ownership has passed to the Group as in FOB sales.
The Group has allocated an impairment provision for inventories in cases when their net realizable values are lower than
their costs or when they are classified as slow-moving inventories.
In the current year, the Group has identified certain inventory items where the net realizable values were below the cost
of the related inventory. Consequently, the Group has written down TL 7.879.728 (31 December 2012: TL 3.067.066) of
inventory.
The Group reversed TL 8.026.458 (31 December 2012: TL 121.528) of a previous inventory write-down in previous
years. The amount reversed has been included in “cost of sales” in the statement of profit or loss.
The movement of the allowance for impairment on
inventories:
Opening balance
Provision released
Closing balance
8.198.536
(8.026.458)
7.879.728
8.051.806
5.252.998
(121.528)
3.067.066
8.198.536
5/29/14 5:43 PM
41
8. PREPAID EXPENSES AND DEFERRED INCOME
Short-term prepaid expenses
Order advances given for inventory purchases
Short-term order advances given to related parties for inventory purchases
(Note 4)
Prepaid expenses
Long-term prepaid expenses
Order advances given for inventory purchases
Short-term order advances given to related parties
for inventory purchases (Note 4)
Order advances given for fixed asset purchases
Prepaid expenses
Short-term deferred income
Order advances received
Order advances received from related parties (Note 4)
Deferred income
31 December 2013
31 December 2012
222.473.292
216.486.676
26.758.793
28.137.062
277.369.147
17.418.187
30.939.947
264.844.810
31 December 2013
31 December 2012
65.361.147
50.003.569
179.437.416
24.325.736
5.315.352
274.439.651
200.403.017
23.064.914
2.641.726
276.113.226
31 December 2013
31 December 2012
192.644.590
13.211.920
8.178.493
214.035.003
132.362.456
10.354.490
3.026.317
145.743.263
Short-term order advances received consists of the advances received from 43 customers (31 December 2012: 48
customers) of which first 10 customers form 98,75% (31 December 2012: 96,96%) of the total advances.
Long-term deferred income
Order advances received
Order advances received from related parties (Note 4)
Deferred income
31 December 2013
31 December 2012
1.124.223.301
37.801.793
1.975
1.162.027.069
995.791.348
46.148.760
28.962
1.041.969.070
Long-term order advances received consists of the advances received from 25 customers (31 December 2012: 29
customers) of which first 10 customers form 99,84% (31 December 2012: 99,64%) of the total advances.
5/29/14 5:43 PM
42
9. FIXED ASSETS
Machinery
and
equipment
466.325.620
56.448.824
(1.597.863)
196.490
521.373.071
Vehicles
3.552.228
8.593
(26.503)
3.534.318
Land
Land
improvements
Cost value and revaluation
Opening balance as of 1 January 2013
Additions
Revaluation fund
Disposals
Transfers
Closing balance as of 31 December 2013
19.680.542
4.000.000
187.053.422
210.733.964
14.067.553
1.194.382
(18.661)
15.243.274
Buildings
145.621.719
293.096
145.914.815
Accumulated Depreciation
Charge for the period
Disposals
Transfers
-
6.789.474
655.962
(11.429)
7.434.007
48.106.382
4.980.945
53.087.327
285.285.614
30.766.458
(1.492.927)
(67)
314.559.078
2.516.695
391.102
(26.503)
2.881.294
210.733.964
7.809.267
92.827.488
206.813.993
653.024
Net book value as of 31 December 2013
Includes the mould model devices manufactured by the Group with net book value of TL 17.889.997 (31 December 2012: TL 14.267.299).
The finance expenses capitalized in the current period is TL 4.658.230 and capitalized foreign exchange loss is TL 17.082.807 (31 December 2012: Finance expense
amounting to TL 2.068.070 and foreign exchange gain TL 820.000) (Note 12).
(*)
(**)
5/29/14 5:43 PM
43
Furniture and
fixtures
87.113.705
5.546.031
(863.325)
7.580
91.803.991
Other fixed assets (*)
39.615.189
7.088.571
501
46.704.261
66.392.027
5.676.616
(832.308)
(434)
71.235.901
20.568.090
Leasehold
improvements
5.173.031
25.251
5.198.282
Construction in
progress (**)
68.089.222
114.846.065
(79.009)
(204.571)
182.651.707
Total
849.238.809
189.450.813
187.053.422
(2.585.361)
1.223.157.683
25.331.928
3.467.771
501
28.800.200
2.723.953
447.723
3.171.676
-
437.146.073
46.386.577
(2.363.167)
481.169.483
17.904.061
2.026.606
182.651.707
741.988.200
5/29/14 5:43 PM
44
Machinery
and
equipment
417.601.131
47.866.251
(195.564)
1.053.802
466.325.620
Vehicles
3.659.050
285.294
(392.116)
3.552.228
Land
Land
improvements
Cost Value
Additions
Disposals
Transfers
19.680.542
19.680.542
12.495.005
1.572.548
14.067.553
Buildings
145.064.985
58.400
(4.108)
502.442
145.621.719
Accumulated Depreciation
Disposals
-
6.166.921
622.553
6.789.474
43.101.399
5.005.805
(822)
48.106.382
260.103.818
25.334.663
(152.867)
285.285.614
2.366.299
459.291
(308.895)
2.516.695
19.680.542
7.278.079
97.515.337
181.040.006
1.035.533
5/29/14 5:43 PM
45
Furniture and
fixtures
80.546.215
6.076.053
(67.853)
559.290
87.113.705
Other fixed assets
34.911.404
(55.088)
4.758.873
39.615.189
61.135.751
5.267.554
(11.278)
66.392.027
20.721.678
Leasehold
improvements
4.717.698
98.603
356.730
5.173.031
Construction in
progress
28.110.666
52.811.101
(4.005.984)
(8.826.561)
68.089.222
Total
746.786.696
107.195.702
(4.720.713)
(22.876)
849.238.809
21.713.054
3.643.292
(24.418)
25.331.928
1.854.398
869.555
2.723.953
-
396.441.640
41.202.713
(498.280)
437.146.073
14.283.261
2.449.078
68.089.222
412.092.736
5/29/14 5:43 PM
46
The breakdown of the depreciation expenses with respect to the fixed assets is as follows:
31 December 2013
465.462
5.225.753
17.950.069
22.745.293
46.386.577
Marketing expenses
General administrative expenses
Inventories
Cost of sales
31 December 2012
530.159
4.416.103
14.656.433
21.600.018
41.202.713
Fair value measurement of the Group’s freehold land and buildings
The Group’s freehold lands are stated at their revalued amounts. The fair value measurements of the Group’s freehold
lands as at 31 December 2013 were performed by Yatırım Gayrimenkul Değerleme A.Ş. independent valuers not related
to the Group. Yatırım Gayrimenkul Değerleme A.Ş. is authorized by Capital Markets Board and they have appropriate
qualifications and recent experience in the valuation of properties in the relevant locations. The fair value of the freehold
land was determined based on ”Market Comparable Approach”.
Details of the Group’s freehold lands and information about the fair value hierarchy as at 31 December 2013 are as
follows:
Macunköy
Akyurt
Oğulbey
Gölbek
Denizli
31 December 2013
131.213.964
72.140.000
7.165.000
200.000
15.000
210.733.964
Fair value as a date of 31 December 2013
Level 1 TL
Level 2 TL
-
Level 3 TL
131.213.964
72.140.000
7.165.000
200.000
15.000
210.733.964
5/29/14 5:43 PM
47
10. INTANGIBLE ASSETS
Other
intangible
assets (*)
Total
Rights
Development
Costs
Cost Values
Additions
Disposals
18.185.015
25.858
(5.476)
18.205.397
337.190.061
113.815.180
(15.981.345)
435.023.896
50.346.071
10.115.010
(964)
60.460.117
405.721.147
123.956.048
(15.987.785)
513.689.410
Accumulated Amortization
Disposals
17.971.864
69.289
(5.476)
18.035.677
169.720
50.791.899
28.225.653
(3.311.932)
75.705.620
359.318.276
39.269.887
7.871.545
(964)
47.140.468
13.319.649
108.033.650
36.166.487
(3.318.372)
140.881.765
372.807.645
Other
intangible
assets (*)
Total
(*)
Other intangible assets include computer software licenses.
Rights
Development
Costs
Cost Values
Additions
Disposals
Transfers
18.185.015
18.185.015
194.050.788
149.757.904
(6.618.631)
337.190.061
40.948.728
9.462.372
(87.905)
22.876
50.346.071
253.184.531
159.220.276
(6.706.536)
22.876
405.721.147
Accumulated Amortization
Disposals
17.906.747
65.117
17.971.864
213.151
30.855.811
19.936.512
(424)
50.791.899
286.398.162
32.221.716
7.079.530
(31.359)
39.269.887
11.076.184
80.984.274
27.081.159
(31.783)
108.033.650
297.687.497
(*)
Other intangible assets include computer software licenses.
5/29/14 5:43 PM
48
The breakdown of amortization expenses related to intangible assets is as follows:
Marketing, sales and distribution expenses
General administrative expenses
R&D expenses
Inventories
Cost of sales
31 December 2013
11.756
2.804.097
28.231.991
2.922.900
2.195.743
36.166.487
31 December 2012
151.049
2.690.676
19.936.833
2.401.721
1.900.880
27.081.159
11. GOVERNMENT GRANTS AND INCENTIVES
The deferred incentive income shown under short and long-term liabilities in the consolidated statement of financial
position is as follows:
Current government grants and incentives
Non-current government grants and incentives
31 December 2013
11.280.034
1.878.514
13.158.548
31 December 2012
7.433.936
785.936
8.219.872
Government grants shows the unearned proportion of the grant after the costs related with the completed parts of the
projects are deducted from the grants taken by the Group for the ongoing projects that was obtained as of the balance
sheet date.
The incentive obtained consists of the incentives that are accrued in accordance with TÜBİTAK’s R&D recognition letter
prepared with respect to the Group’s ongoing projects.
The Group obtains capital support from “Support and Price Stabilization Fund” of Central Bank of Turkey via
Undersecretariat of Foreign Trade’s consent. The Scientific and Technological Research Council of Turkey (TÜBİTAK)
and Technology Development Foundation of Turkey (TTGV) act as intermediary in accordance with Communiqué
No:98/10 published by the Money-Loans and Coordination Board.
The R&D expenditure deduction rate used as a tax benefit has been increased from 40% to 100% in accordance with
the amended article 10 of the Tax Law numbered 5520 as a result of the amendment in article 35 of Law No. 5746
with respect to the Support of R&D Activities. The aforementioned law was enacted as of April 2008 after its issue in
the Official Gazette dated 12 March 2008, numbered 26814. R&D expenditure may be used as a tax deduction in the
determination of the taxable income. If taxable income levels are not sufficient to absorb all available tax deductions,
any unused R&D tax deduction is allowed to be carried forward to the next tax period. According to the item No.8 of the
related law, all the costs related with R&D can be subjected to deduction until 31 December 2023.
In accordance with Teknokent Law numbered 4691, Group utilizes withholding income tax incentive, social security
premium incentive and stamp tax exceptions. Such incentives are utilized through not paying withholding income tax
incentive, social security premium incentive and stamp tax exceptions calculated based on R&D and software personnel
payroll. Income generated in accordance with Technology Development Zone Law numbered 4691 is exempt from
corporate income tax until 31 December 2023.
5/29/14 5:43 PM
49
12. BORROWING COSTS
As of 31 December 2013 total borrowing cost regarding the assets that necessarily take a substantial period of time to
get ready for their intended use or sale is TL 21.741.037 (31 December 2012: 2.888.070) (Note 9).
Foreign currency exchange loss related to the investment loan received from Undersecretariat for Defense Industries
(“UDI”) amounting to USD 65 Million (2011: USD 40 Million, 2013: USD 25 Million) is recognized under the balance
sheet in accordance with the limits defined by TAS 23 “Borrowing Costs”. If foreign currency exchange loss exceeds
this limit, it will be recognized in the statement of profit or loss. In the current period, total amount of the foreign currency
exchange loss related with USD 40 Million portion of UDI loan is capitalized since the amount is within the capitalization
ceiling as of 31 December 2013. Related with USD 25 Million portion of the UDI loan, since the total amount of the
foreign currency exchange loss exceeded the capitalization ceiling, loss amounting to TL 5.695.193 is recognized in the
statement of profit or loss for the year ended 31 December 2013.
13. PROVISIONS, CONTINGENT ASSETS AND LIABILITIES
a) Provisions
31 December 2013
31 December 2012
9.238.648
445.573
72.626.865
1.386.218
4.135.875
1.140.291
88.973.470
11.738.479
846.568
57.925.813
2.101.899
3.321.929
829.566
76.764.254
Other short-term provisions
Provision for delay penalties and fines
Provision for lawsuits
Provision for expenses related to costing
Provision for insurance expense
Other
The movement of the provision for delay penalties and fines is as follows:
Opening balance
Provision released (-)
Closing balance
11.738.479
9.997.244
9.392.825
1.996.180
(11.892.656)
(254.945)
9.238.648
11.738.479
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50
The movement of the provision for lawsuits is as follows:
Opening balance
Provision released (-)
Closing balance
846.568
1.062.588
95.486
165.000
(496.481)
(381.020)
445.573
846.568
The movement of the provision for guarantee expenses is as follows:
Opening balance
Provision released
Closing balance
57.925.813
53.341.666
52.765.333
40.621.741
(38.064.281)
(36.037.594)
72.626.865
57.925.813
31 December 2013
31 December 2012
2.850.210
9.039.061
Other long-term provisions
The movement of the provision for delay penalties and fines is as follows:
Opening balance
Provision released
Closing balance
9.039.061
11.128.448
(6.188.851)
(2.089.387)
2.850.210
9.039.061
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51
b) Lawsuits
As of 31 December 2013 and 31 December 2012, according to the declarations written by the legal counselors, the
lawsuits and executions in favor of and against the Group are as follows:
Description
a)
b)
c)
d)
e)
Ongoing lawsuits filed by the Group
Execution proceedings carried on by the Group
Ongoing lawsuits filed against the Group
Lawsuits finalized in favor of the Group within the period
Lawsuits finalized against the Group within the period
31 December 2013
31 December 2012
3.757.739
5.048.050
445.573
1.019.456
430.231
4.636.063
3.231.786
846.568
212.000
100.000
31 December 2013
1.388.066
567.030.787
17.630.657
3.773.895
6.000
64.460
599.600
590.493.465
31 December 2012
1.291.900
485.747.109
29.917.770
3.518.112
6.000
57.639
739.600
521.278.130
14. COMMITMENTS AND CONTINGENCIES
a) Letters of guarantees received
Letters of guarantees received from the customers
Letters of guarantees received from the suppliers
Collaterals received from the customers
Collaterals received from the suppliers
Cheques received from the customers
Cheques received from the suppliers
Mortgages received from the customers
5/29/14 5:43 PM
52
b) Deposits and guarantees given
The collaterals/pledges/mortgages (“CPM”) given by the Group as of 31 December 2013 and 31 December 2012 is as
follows:
31 December 2013
A. Total amount of CPM given on behalf of the legal entity
- Collateral
- Pledge
- Mortgage
B. Total amount of CPM given on behalf of the subsidiaries
included in full consolidation
- Collateral
- Pledge
- Mortgage
C. Total amount of CPM given to maintain operations and collect
payables from third parties
- Collateral
- Pledge
- Mortgage
D. Total amount of other CPM given
i. Total Amount of CPM on behalf of the main partner
- Collateral
- Pledge
- Mortgage
ii. Total amount of CPM given on behalf of other group companies
that do not cover B and C
- Collateral
- Pledge
- Mortgage
iii. Total amount of CPM on behalf of third parties that do not
cover C.
- Collateral
- Pledge
- Mortgage
Total
TL Equivalent
TL
US Dollars
5.248.241.056
-
739.909.613
-
1.368.123.658
-
53.357.500
-
-
25.000.000
-
-
-
-
-
-
-
988.000
-
988.000
-
-
5.302.586.556
740.897.613
1.393.123.658
The ratio of the given other CPM to the Group’s equity as of 31 December 2013 is 0,06%.
5/29/14 5:43 PM
53
EURO
UAE Dirham
Polish Zloty
Indian Rupee
British Pound
501.172.743
-
26.759.651
-
2.424.322
-
79.694.000
-
27.562.855
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
501.172.743
26.759.651
2.424.322
79.694.000
27.562.855
5/29/14 5:43 PM
54
31 December 2012
A. Total amount of CPM given on behalf of the legal entity
- Collateral
- Pledge
- Mortgage
B. Total amount of CPM given on behalf of the subsidiaries
included in full consolidation
- Collateral
- Pledge
- Mortgage
C. Total amount of CPM given to maintain operations and collect
payables from third parties
- Collateral
- Pledge
- Mortgage
D. Total amount of other CPM given
i. Total Amount of CPM on behalf of the main partner
- Collateral
- Pledge
- Mortgage
ii. Total amount of CPM given on behalf of other group
companies that do not cover B and C
- Collateral
- Pledge
- Mortgage
iii. Total amount of CPM on behalf of third parties that do not
cover C.
- Collateral
- Pledge
- Mortgage
Total
TL Equivalent
TL
US Dollars
4.106.239.271
-
564.351.344
-
1.317.424.829
-
44.565.000
-
-
25.000.000
-
-
-
-
-
-
-
438.000
-
438.000
-
-
4.151.242.271
564.789.344
1.342.424.829
The ratio of the given other CPM to the Group’s equity as of 31 December 2012 is 0,03%.
5/29/14 5:43 PM
55
EURO
UAE Dirham
Polish Zloty
Indian Rupee
500.206.017
-
26.759.651
-
2.424.322
-
82.006.151
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
500.206.017
26.759.651
2.424.322
82.006.151
5/29/14 5:43 PM
56
15. EMPLOYMENT BENEFITS
a) Payables for employment benefits
Due to personnel
Social security premiums payable
Taxes and funds payable
31 December 2013
2.168.590
9.565.489
7.492.520
19.226.599
31 December 2012
1.768.168
8.159.366
6.157.532
16.085.066
31 December 2013
25.395.640
31 December 2012
18.656.924
b) Short-term provisions for employment benefits
Provision for annual leave and overtime
The movement of the provision for annual leave and overtime is as follows:
Opening balance
Provision released
Closing balance
18.656.924
13.993.659
(11.023.503)
(9.044.374)
17.762.219
13.707.639
25.395.640
18.656.924
c) Long-term provisions for employment benefits
Provision for severance pay
Provision for retirement pay
97.341.311
94.969.281
9.726.504
9.465.151
107.067.815
104.434.432
The movement for provisions for severance and retirement pays is as follows:
Opening balance
Actuarial gain/loss
Cost of service
Interest cost
Severance and retirement benefits paid
Closing balance
104.434.432
73.537.472
(11.637.395)
16.469.895
6.469.027
32.300.065
13.552.787
(12.953.148)
(5.751.036)
(4.919.852)
107.067.815
104.434.432
Retirement pay provisions:
Under the Turkish Labor Law, the Group is required to pay employment termination benefits to each employee who has
qualified for such payment. Also, employees are required to be paid their retirement pay who retired by gaining right
to receive according to in accordance with the provisions set out in law no: 2422 issued at 6 March 1981, law no: 4447
issued at 25 August 1999 and the amended Article 60 of the existing Social Insurance Law No: 506. Some transitional
provisions related to the pre-retirement service term were excluded from the law since the related law was amended as
of 23 May 2002.
The amount payable consists of one month’s salary limited to a maximum of TL 3.254,44 (31 December 2012: TL
3.033,98) for each period of service at 31 December 2013.
Ceiling for retirement pay is revised semi-annually. Ceiling amount of TL 3.438,22 which is in effect since 1 January 2014
is used in the calculation of Group’s provision for retirement pay liability.
5/29/14 5:43 PM
57
The liability is not funded, as there is no funding requirement. The provision has been calculated by estimating the
present value of the future probable obligation of the Group arising from the retirement of employees. TAS 19 (“Employee
Benefits”) requires actuarial valuation methods to be developed to estimate the entity’s obligation under defined benefit
plans. Accordingly, the following actuarial assumptions were used in the calculation of the total liability:
Interest rate (%)
Inflation rate (%)
Discount ratio (%)
Estimation of probability of retirement ratio (%)
31 December 2013
10,07
6,37
3,48
98,92
31 December 2012
7,25
5,00
2,14
99,09
31 December 2013
156.974.183
8.145.372
234.325
358.294
18.805.762
384.646
184.902.582
31 December 2012
143.136.419
10.344.366
1.139.471
281.869
19.361.643
339.819
174.603.587
16. OTHER ASSETS AND LIABILITIES
a) Other current assets
VAT carried forward
Other VAT
Prepaid taxes and funds
Job advances given
Blocked deposits (**)
Other
(*)
To the taxpayers (Contractor/the Group) who deliver goods and give services to the Natural Security Institutions (such as MOD and UDI) that are to be approved by the
customers (contacting authority) in terms of content and nature, Value Added Tax (VAT) is being exempted as of 1 March 2009 in accordance with General Declaration
on Value Added Tax with the Serial Number 112 in the Official Gazette as of 12 February 2009. These amounts are usually not collected, but they are offset with other tax
liabilities.
(**)
These amounts consist of the blocked deposits related to 1007 and the European Union projects.
(*)
b) Other non-current assets
Prepaid taxes and funds
c) Other current liabilities
Taxes and funds payable
Other
31 December 2013
4.654.744
31 December 2012
2.523.856
31 December 2013
2.814.105
83.168
2.897.273
31 December 2012
3.778.203
26.409
3.804.612
5/29/14 5:43 PM
58
17. SHARE CAPITAL AND OTHER EQUITY ITEMS
Capital
Shareholders
TAFF
Other shareholder
(Axa Sigorta A.Ş.)
Quoted in stock exchange
Nominal capital
Share capital adjustment
Inflation adjusted capital
Share (%) 31 December 2013
84,58
422.912.812
0,12
15,30
100
577.846
76.509.342
500.000.000
98.620.780
598.620.780
Share (%) 31 December 2012
84,58
422.912.812
0,12
15,30
100
577.846
76.509.342
500.000.000
98.620.780
598.620.780
The Group’s nominal capital is TL 500.00.000 that consists of 50.000.000.000 shares each of which is 1 kuruş (1% of
1 Turkish Lira). A total of 30.272.727.273 of the shares consists of Group A and 19.727.272.727 of the shares consists
of Group B shares. All of the shares are nominative. 6 member of the Board of Directors are assigned from the holders
of nominative Group A type shareholders or from the ones nominated by Group A type shareholders. Moreover, when
new shares are issued the proportion of nominative Group A shares prevalent in the issued capital are preserved. In
accordance with the CMB’s requirements, except for Independent members of the Board of Directors, Group A shares
are nominative and Members of the Board are assigned from the holders of A type shareholders or from the ones
nominated by A type shareholders.
Restricted profit reserves
The legal reserves consist of first and second legal reserves, appropriated in accordance with the TCC. The first legal
reserve is appropriated out of historical statutory profits of the prior year at the rate of 5% per annum, until the total
reserve reaches 20% of the historical paid-in share capital. After the 5% of the dividend is paid to shareholders, 10% of
the total distributed to shareholders and employees can be added in general legal reserve.
As of 31 December 2013, The Group’s restricted reserves set aside from profit consists of the legal reserves. The total of
the Group’s legal reserves are TL 69.677.755 (31 December 2012: TL 52.071.680).
Retained Earnings
Accumulated profits apart from the net profit for the year and extraordinary reserves which is accumulated profit by
nature are shown under the retained earnings. As of 31 December 2013 the extraordinary reserves balance presented
in retained earnings is TL 508.504.057 (31 December 2012: TL 359.696.952). According to the statutory records, the
Company’s profit for the year is TL 79.566.382 TL (31 December 2012: TL 244.902.216) and its other funds available for
profit distribution is TL 521.044.181 (31 December 2012: TL 364.393.120). The details of funds is as follows:
Capital reserves and ve extraordinary reserves
31 December 2013
521.044.181
31 December 2012
364.393.120
Profit distribution
As of 29 March 2013 Annual Meeting, in accordance with the consolidated financial statements, the General Assembly
of the Company has decided to allocate capital reserve amounting to TL 17.595.111 of the TL 306.378.584 which is
based on the profit distribution, and to distribute TL 78.500.000 in cash to shareholders for dividend payment by leaving
the amount of TL 210.283.473 within the Group. Thus, the cash dividend amount for 1 TL nominal value per share is TL
0,157 (31 December 2012: TL 0,093).
Besides, as of 3 April 2013 AselsanNet Annual Meeting, General Assembly of the company has decided to distribute
dividend amounting to TL 50.000. As a result total amount of the funds remaining within the Group after profit distribution
and transfers is TL 197.057.557 (31 December 2012: TL 104.857.942)
5/29/14 5:43 PM
59
The dividend paid to shareholders during 2013 is TL 0,157 per 100 shares (total dividend paid is TL 78.500.000) (2012:
TL 0,093 per 100 shares, total dividend paid TL 46.456.739). The Group Management plans to distribute a dividend of
TL 0,05 per 100 shares with the Board of Members Minute dated 5 March 2014 with respect to the current year. This
dividend payment will be subject to the shareholders’ approval in the General Assembly, and it has not been recognized
as a liability in the financial statements yet. Total expected dividend to be paid is TL 25.000.000.
18. SALES REVENUE AND COST OF SALES
a) Sales Revenue
Domestic sales
Export sales
Other revenues
Sales returns (-)
Sales discounts (-)
Other discounts (-)
1.773.479.945
398.126.535
1.388.349
(541.838)
(892.138)
(135.557)
2.171.425.296
1.362.700.772
271.984.690
542.235
(1.247.670)
(1.067.402)
(16.258)
1.632.896.367
b) Cost of Sales (-)
Cost of raw materials used
Personnel expenses
Production overheads
Provision for project guarantee, delay and losses
Change in work in progress
Change in finished goods
Development expenses (*)
Cost of services given
Cost of merchandise goods sold
Cost of other sales
609.698.452
80.606.786
94.176.117
53.220.440
(67.088.288)
(4.349.520)
583.051.423
93.941.713
18.072.977
151.311.053
1.612.641.153
606.580.057
64.786.741
76.833.732
12.399.228
(32.555.154)
4.777.998
394.738.961
69.952.622
7.267.250
29.803.373
1.234.584.808
(*)
Development expenses consist of raw material, design, personnel, amortization and depreciation expenses.
19. CONSTRUCTION CONTRACTS
Construction costs incurred plus recognized profits
less recognized losses to date
Less: earned allowances
Total
Amounts due from customers under construction
contracts (Note 5)
Amounts due to customers under construction
contracts (Note 5)
31 December 2013
31 December 2012
5.229.103.266
(4.871.826.507)
357.276.759
3.795.068.027
(3.532.086.783)
262.981.244
449.704.930
382.692.740
(92.428.171)
357.276.759
(119.711.496)
262.981.244
5/29/14 5:44 PM
60
20. GENERAL ADMINISTRATIVE EXPENSES, MARKETING EXPENSES, R&D EXPENSES
General administrative expenses (-)
Marketing expenses (-)
R&D expenses (-)
(103.256.327)
(95.892.522)
(38.427.719)
(38.222.739)
(63.852.597)
(63.894.076)
(205.536.643)
(198.009.337)
a) General administrative expenses (-)
Personnel expenses
Depreciation and amortization expenses
Maintenance and repair expenses
Electricity expenses
Personnel transportation expenses
Course and seminar expenses
Insurance expenses
Consultancy expenses
Personnel meal expenses
Furniture and fixture expenses
Expertise expenses
Rent expenses
Other
(74.537.509)
(67.469.122)
(8.029.850)
(7.106.779)
(1.389.436)
(1.921.208)
(3.798.160)
(3.483.458)
(1.582.146)
(1.508.462)
(482.943)
(615.228)
(1.358.453)
(1.144.595)
(94.560)
(1.282.276)
(871.423)
(855.859)
(162.877)
(243.135)
(1.389.843)
(1.089.724)
(1.301.178)
(1.140.352)
(8.257.949)
(8.032.324)
(103.256.327)
(95.892.522)
b) Marketing expenses (-)
Personnel expenses
Stamp duty expenses
Overseas travel expenses
Exhibition expenses
Shipping and delivery expenses
Advertising expenses
Insurance expenses
Commission expenses
Packaging expenses
Domestic travel expenses
Specimen expenses
Electricity expenses
Maintenance and repair expenses
Agency and entertainment expenses
Personnel transportation expenses
Rent expenses
Other
(12.527.664)
(13.639.439)
(4.532.307)
(6.183.853)
(1.362.469)
(2.120.903)
(4.634.572)
(2.012.266)
(3.317.086)
(1.464.806)
(1.713.123)
(1.547.250)
(431.919)
(477.273)
(4.121.389)
(3.930.913)
(477.218)
(681.208)
(600.948)
(604.358)
(454.943)
(408.509)
(685.516)
(641.981)
(420.126)
(384.440)
(213.690)
(268.473)
(469.885)
(274.676)
(239.533)
(262.196)
(183.764)
(187.362)
(2.041.567)
(3.132.833)
(38.427.719)
(38.222.739)
5/29/14 5:44 PM
61
c) R&D expenses (-)
Equipment costs
Personnel expenses
Other
(7.837.429)
(6.551.968)
(24.582.472)
(29.449.559)
(28.231.991)
(19.936.833)
(3.200.705)
(7.955.716)
(63.852.597)
(63.894.076)
21. OTHER OPERATING INCOME AND EXPENSES
a) Other operating income
Foreign currency exchange gains from activities (*)
Discount income
Interest income
Provisions released
Insurance income for damages
Income from letter of guarantees and interest income
due to delays (**)
Non-cost material income
Income from personnel
Other income
(*)
301.137.588
264.404.392
3.695.019
1.290.165
7.317.219
12.883.616
496.481
381.020
307.220
626.506
92.037
864.854
522.807
2.663.649
317.096.874
21.023.053
1.646.250
309.362
3.162.887
305.727.251
Mainly consists of the foreign currency exchange valuation of advances received and advances given denominated in foreign currencies.
The amount of 2012 includes the liquidation of the letter of guarantees and interest income of delay due to the result of the cancellation of a sub-contractor contract.
(**)
b) Other operating expense
Foreign currency exchange losses from activities (*)
Discount expense
Grants and donations (**)
Damage expense
Special communication tax
Other expense and losses
(*)
(489.560.851)
(232.864.956)
(3.154.482)
(3.221.052)
(3.709.616)
(254.207)
(231.487)
(24.994)
(147.692)
(2.316.356)
(3.426.839)
(495.310.890)
(243.601.642)
Mainly consists of the foreign currency exchange valuation of advances received and advances given denominated in foreign currencies.
2012 donation amount consists of the construction expenses of Aselsan primary school in VAN-Erciş.
(**)
22. INCOME FROM INVESTING ACTIVITIES
Gain on sale of securities
Dividend income
540.164
10.369.803
3.225.094
10.369.803
3.765.258
23. FINANCIAL INCOME
Foreign currency exchange gain from bank loans
6.536.436
14.228.072
5/29/14 5:44 PM
62
24. FINANCIAL EXPENSES
Foreign currency exchange losses from bank loans
Short-term borrowing expense
Long-term borrowing expense
(36.719.273)
(6.877.282)
(6.105.776)
(1.783.495)
(1.770.149)
(1.568.995)
(44.595.198)
(10.229.772)
25. ANALYSIS OF OTHER COMPREHENSIVE INCOME ITEMS
Revaluation funds
31 December 2013
177.532.454
Fixed assets revaluation fund
31 December 2012
-
Fixed assets revaluation fund:
Opening balance
Fixed asset revaluation increases
Deferred tax on revaluation
Closing balance
186.876.267
(9.343.813)
177.532.454
-
The fixed asset revaluation reserve arises on the revaluation of lands and properties. When revalued lands or properties
are sold, the portion of the fixed asset revaluation reserve that relates to that asset is transferred directly to retained
earnings.
26. INCOME TAXES
Corporate tax liabilities:
Current corporate tax provision
Less: Prepaid taxes and funds
31 December 2013
31 December 2012
735.616
(254.712)
480.904
656.430
(352.155)
304.275
Tax income:
Current corporate tax expense
Deferred tax income
Tax effects related to components of
Other Comprehensive Income
Gains on revaluation of fixed assets (*)
Actuarial gains and losses on defined benefit plans
Other comprehensive income in the period
(*)
(735.616)
91.938.025
91.202.409
Amount
Tax
before tax
income/expense
186.876.267
(9.352.671)
11.637.395
(2.327.479)
198.513.662
(11.680.150)
(656.430)
37.381.897
36.725.467
Net of
tax amount
177.523.596
9.309.916
186.833.512
Revaluation of fixed assets is realized in 2013, no revaluation was made in 2012.
5/29/14 5:44 PM
63
Amount
Tax
before tax
income/expense
(16.469.895)
3.293.979
(16.469.895)
3.293.979
Tax effects related to components of Other
Comprehensive Income
Actuarial gains and losses on defined benefit plans
Other comprehensive income in the period
Tax recognized directly in equity
Deferred tax
Directly recognized in equity:
- Revaluation on fixed assets
- Actuarial income/expense
Deferred tax recognized directly in equity
Net of
tax amount
(13.175.916)
(13.175.916)
(9.352.671)
(2.327.479)
(11.680.150)
3.293.979
3.293.979
Corporate tax
The Group is subject to Turkish corporate taxes. Provision is made in the accompanying consolidated financial
statements for the estimated change based on the Group’s results for the year. Turkish tax legislation does not permit a
parent company and its subsidiary to file a consolidated tax return. Therefore, provisions for taxes, as reflected in the
accompanying consolidated financial statements, have been calculated on a separate entity bases.
Corporate tax is applied on taxable corporate income, which is calculated from the statutory accounting profit by adding
back non-deductible expenses, and by deducting dividends received from resident companies, other exempt income
and investment incentives utilized.
The effective tax rate in 2013 is 20% (2012: 20%) for the Group.
In Turkey, advance tax returns are filed on a quarterly basis. Advance corporate income tax rate applied in 2013 is 20%.
(2012: 20%). Losses can be carried forward for offset against future taxable income for up to 5 years. However, losses
cannot be carried back for offset against profits from previous periods.
Furthermore, there is no procedure for a final and definitive agreement on tax assessments. Companies file their tax
returns between 1-25 April following the close of the accounting year to which they relate. Tax authorities may, however,
examine such returns and the underlying accounting records and may revise assessments within five years.
Income withholding tax
In addition to corporate taxes, companies should also calculate income withholding taxes on any dividends distributed,
except for companies receiving dividends who are resident companies in Turkey and Turkish branches of foreign
companies. The rate of income withholding tax is 10% between 24 April 2003 and 22 July 2006. This rate was changed
to 15% commencing from 23 July 2006 with the Cabinet Decision 2206/10731. Undistributed dividends incorporated in
share capital are not subject to income withholding taxes.
5/29/14 5:44 PM
64
Deferred tax
The Group recognizes deferred tax assets and liabilities based upon temporary differences arising between its financial
statements as reported for TFRS purposes and its statutory tax financial statements. These differences usually result in
the recognition of revenue and expenses in different reporting periods for TFRS and tax purposes and they are given
below.
For calculation of deferred tax asset and liabilities, the rate of 20% (2012: 20%) is used.
In Turkey, the companies cannot declare a consolidated tax return, therefore subsidiaries that have deferred tax asset
position were not netted off against subsidiaries that have deferred tax liabilities position and disclosed separately.
The details of deferred tax assets and liabilities of the Group are as follows:
Deferred tax assets:
Discount on receivables
Costs and provision for expected losses of construction contracts
Provision for doubtful receivables
Impairment provision for inventory
Provision for severance pay
Provision for retirement pay
Provision for annual leave and overtime
Provision for lawsuits
Accumulated Losses
Accumulated R&D incentive
Other
31 December 2013
(607.197)
(300.837.333)
(288.096)
(1.575.946)
(2.400.107)
(14.525.373)
(19.468.262)
(1.945.301)
(5.079.128)
(27.047)
(1.525.204)
(206.108.738)
(150.931)
31 December 2012
(302.229)
(235.868.013)
(240.713)
(1.604.512)
(2.117.197)
(11.585.164)
(18.993.856)
(1.893.030)
(3.731.385)
(22.200)
(955.573)
(107.820.011)
(57.453)
Deferred tax liabilities:
Discount on payables
Adjustment of progress payments for long-term construction
contracts
Adjustment on inventories
Depreciation of fixed assets / amortization of intangible assets
Fixed assets revaluation fund
Other
31 December 2013
567.304
31 December 2012
156.900
314.891.593
163.022
16.701.445
9.352.671
-
236.972.464
163.720
15.290.845
2.654
(554.538.663)
341.676.035
(212.862.628)
(385.191.336)
252.586.583
(132.604.753)
Deferred tax assets
Deferred tax liabilities
Deferred tax assets - net
The Group realized deferred tax assets amounting to TL 206.108.738 (31 December 2012: TL 107.820.011) on the R&D
expenses amounting to TL 1.030.543.690 (31 December 2012: TL 539.100.055) in accordance with Law No: 5746 about
supporting R&D activities as disclosed in Note 11.
5/29/14 5:44 PM
65
The Group realized tax assets amounting to TL 1.525.204 (31 December 2012: TL 955.573) on tax deductible losses of
Mikes amounting to TL 7.626.018 (31 December 2012: TL 4.777.864).
Movement of deferred tax (assets)/liabilities:
Opening balance as of 1 January
Realized in the income statement
Realized in equity
132.604.753
91.938.025
(11.680.150)
212.862.628
91.928.877
37.381.897
3.293.979
132.604.753
Tax reconciliations:
Profit before tax from continuing operations
Income tax rate
Tax at the domestic income tax rate of 20 %
Tax effects of:
- revenue that is exempt from taxation
- expenses that are not deductible in determining
taxable profit
- R&D incentives and other income exempt from
taxation
- effect of other adjustments
Tax income recognized in profit or loss
147.344.525
270.191.389
20%
20%
29.468.905
54.038.278
(4.862.196)
(2.734.509)
2.361.904
3.855.961
(117.541.223)
(3.777.105)
(90.038.723)
(1.846.474)
(91.202.409)
(36.725.467)
27. EARNINGS PER SHARE
Common stock (*)
Net profit - TL
Earnings per 100 shares - TL
50.000.000.000
238.081.489
0,48
50.000.000.000
306.378.584
0,61
The current number of shares after the capital increase which was financed by the internal sources is used while calculating the earnings per share in order to be
comparable with the current period.
(*)
5/29/14 5:44 PM
66
28. FINANCIAL INSTRUMENTS
Non-current financial investments
Financial Investments Valued at Cost That do not have a Quoted Market
The details of the Group’s investments and share percentages of subsidiaries, joint ventures and associates are as
follows:
Company Name
Aselsan Bakü
Roketsan Roket Sanayii ve Ticaret A.Ş.
Mikroelektronik Ar-Ge Tasarım ve Ticaret Ltd. Şti.
Aspilsan A.Ş.
Havaalanı İşletme ve Havacılık End. A.Ş.
Aselsan Kazakhstan Engineering LLP
IGG Aselsan Integrated Systems LLC
Aselsan Middle East PSC LTD
Ratio (%)
100
14,897
85
1
<1
49
49
49
31 December 2013
3.059.234
5.141.213
624.714
147.462
86.953
388.023
42.837
3.233.774
12.724.210
Ratio (%)
100
14,897
85
1
<1
49
49
49
31 December 2012
3.059.234
5.141.213
624.714
147.462
86.953
388.023
42.837
2.527.126
12.017.562
The above available-for-sale equity investments amounting to TL 12.724.210 (31 December 2012: TL 12.017.562) do
not have a quoted market value and their fair values cannot be reliably measured as the range of reasonable fair value
estimates is significant and the probabilities of the various estimates cannot be reasonably assessed. For this reason
they are stated at cost less provision for diminution in value, if any.
Financial liabilities
31 December 2013
31 December 2012
156.356.529
206.323.350
22.713.765
564.806
119.053
93.312
870.232
4.465.208
Total short-term financial liabilities
180.059.579
211.446.676
Other long-term financial liabilities
Long-term financial leasing liabilities
173.039.549
187.863
113.764.741
252.761
Total long-term financial liabilities
173.227.412
114.017.502
Total financial liabilities
353.286.991
325.464.178
Short-term financial liabilities
Current portion of long-term financial liabilities
Current portion of long-term financial leasing
liabilities
Other short-term financial liabilities
5/29/14 5:44 PM
67
As of 31 December 2013, short-term financial liabilities amounting to TL 9.905.861 consist of interest free loans provided
received for Social Security Institution (SGK) payments with a maturity of January 2014. Current financial liabilities
amounting to USD 59.916.913 (TL 82.891.410) consist of Preshipment Export Loan with the maturities vary between
the 5-8 months and with interest rates vary between 1,34%-1,37%. The remaining current financial liability amounting
TL 18.570.000 was received for short-term financial requirements of the Group with interest rates vary between 8,60%9.25%. Major part of the current portion of the long-term borrowings is composed of the principle amount of USD
8.000.000 with a maturity of August 2014 related to the loan amounting USD 40.000.000 with an interest rate of 2,1% and
the principle amount of USD 1.900.000 with a maturity of October 2014 related to the loan amounting USD 25.000.000
with an interest rate of 3,5%. Both loans are obtained from Undersecretariat for Defense Industries.
As of 31 December 2013, USD 1.164.567 (TL 2.485.535) of the other current and non-current term financial liabilities
consist of the interest free borrowings obtained from Technology Development Foundation of Turkey (TTGV). TL 504.296
of the other financial liabilities was drawn for entity’s fund requirements with an interest rate of 3,5% and daily maturity.
The major part of the remaining current and non-current financial liabilities is composed of the loan obtained from
Undersecretariat for Defense Industries amounting USD 32.000.000 with an interest rate of 2,1%, USD 25.000.000 with
an interest rate of 2,1% and long-term portion amounting to USD 23.100.000 of the loan amounting to USD 25.000.000
with an interest rate of 3,5%. A letter of guarantee was given for the loan amounting USD 65.000.000 to Undersecretariat
for Defense Industries.
As of 31 December 2012, short-term financial liabilities amounting to TL 8.175.302 consist of interest free loans provided
for Social Security Institution (SGK) payments with a maturity of January 2013. Current financial liability amounting TL
115.256.638 was drawn for the purpose of financial investment with an interest rate of 6.19% and the maturity was
January 2013. The remaining current financial liabilities amounting to USD 59.350.000 and EUR 13.000.000 consist of
Preshipment Export Loan with the maturities of between the 1-4 months and with an interest rate of the ranges between
1%-1,2%.
As of 31 December 2012, other short-term and long-term financial liabilities amounting to USD 1.090.249 (TL 1.943.478)
consist of the interest free borrowings obtained from Technology Development Foundation of Turkey (TTGV). The
major part of the remaining non-current financial liabilities is composed of the loan obtained from Undersecretariat for
Defense Industries amounting to USD 40.000.000 with an interest rate of 2,1. A letter of guarantee amounting to USD
40.000.000 was given for the related loan. The remaining part of the other long-term financial liabilities consists of the
loan amounting to USD 25.000.000 obtained from Undersecretariat for Defense Industries with an interest rate of 3,5%.
Bank loans
Currency
EUR
TL
USD
Weighted average interest rate
5,57
2,00
31 December 2013
Short-term
Long-term
96
70.500
28.464.047
151.595.436
173.156.912
180.059.579
173.227.412
Currency
EUR
TL
USD
Weighted average interest rate
0,98
5,71
2,14
31 December 2012
Short-term
Long-term
30.572.563
123.440.402
57.433.711
114.017.502
211.446.676
114.017.502
5/29/14 5:44 PM
68
The breakdown of the loan repayments with respect to their maturities is as follows:
Within 1 year
Between 1-2 years
Between 2-3 years
Between 3-4 years
Between 4-5 years
Between 5-6 years
Between 6-7 years
31 December 2013
180.059.579
42.852.697
64.312.299
30.159.899
19.484.825
8.208.846
8.208.846
353.286.991
31 December 2012
211.446.676
21.626.962
35.530.121
35.530.121
7.160.889
7.160.889
7.008.520
325.464.178
The remaining part of the loan limit allocated for the Gölbaşı investment amounting USD 22.000.000 is planned to be
used in 2014 with the decision of the Defense Industry Executive Committee.
29. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
a) Capital risk management
The Group manages its capital to ensure that entities in the Group will be able to continue as a going concern while
maximizing the return to stakeholders through the optimization of the debt and equity balance.
The capital structure of the Group consists of debt, which includes the borrowings as explained Note 28, cash and cash
equivalents and equity attributable to equity holders of the parent, comprising issued capital, reserves and retained
earnings.
The risks that are associated with every equity item together with the Group’s cost of capital are evaluated by the board
of directors. Based on the recommendations of the board, the Group aims to balance its overall capital structure through
the payment of dividends, new share issues and share buy-backs as well as the issue of new debt on the redemption of
existing debt.
The Group’s general strategy which was unchanged from 2012 and the ratio of liabilities to share capital as of 31
December 2013 and 2012 are as follows:
Total liabilities
Less: Cash and cash equivalents
Net debt
Total equity
Total capital
Net debt / total equity ratio
31 December 2013
2.395.489.899
(103.683.817)
2.291.806.082
1.612.485.451
3.904.291.533
59%
31 December 2012
2.058.119.180
(352.533.570)
1.705.585.610
1.266.095.591
2.971.681.201
57%
b) Financial Risk Factors:
The Group’s activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. The Group’s overall
risk management program focuses on the unpredictability of financial markets and seeks to minimize potential adverse
effects on the Group’s financial performance.
Risk management is carried out by a central treasury department (group treasury) under policies approved by the
board of directors. Group treasury identifies, evaluates and hedges financial risks in close co-operation with the group’s
operating units.
5/29/14 5:44 PM
69
Credit risk
Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the
Group. The Group is mainly working with public sector and obtaining advance payments where appropriate, both from
public sector and private sector entities. Financing needs arising from new contracts are satisfied by advances received
when the projects start and milestone payments during the projects. The receivables are generally from public sector
and hence considered collectible. Credit exposure is controlled by counterparty limits that are reviewed and approved
by the risk management committee annually. Additionally, receivables are monitored regularly to minimize the collection
risk.
Carrying values of the financial assets reflect the maximum exposure to credit risk. The credit risks as of 31 December
2013 is as follows:
31 December 2013
Maximum net credit risk as of the
balance date (A+B+C+D)
- The part of maximum risk under
guarantee with collateral etc. (*)
A. Net book value of financial assets
that are neither past due nor impaired
B. Net book value of financial assets
that are past due but not impaired
C. Net book value of impaired assets
- Overdue (gross carrying amount)
- Impairment (-)
- The part of net value under
guarantee with collateral etc.
- Undue (gross carrying amount)
- Impairment (-)
D. Factors that include off balance
sheet credit risks
(*)
Receivables
Trade receivables
Other receivables
Related party
Third party Related party
Third party
Bank
deposits
171.549.926
923.433.176
32.771.269
48.938.812
122.367.255
-
19.624.323
-
-
-
171.549.926
908.927.418
32.771.269
48.938.812
122.367.255
-
14.505.758
2.221.896
(2.221.896)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
The guarantees consist of the letters of guarantees, checks and mortgages (Note 14).
5/29/14 5:44 PM
70
Carrying values of the financial assets reflect the maximum exposure to credit risk. The credit risks as of 31 December
2012 is as follows:
31 December 2012
Maximum net credit risk as of the
balance date (A+B+C+D)
- The part of maximum risk under
guarantee with collateral etc. (*)
A. Net book value of financial assets
that are neither past due nor impaired
B. Net book value of financial assets
that are past due but not impaired
C. Net book value of impaired assets
- Overdue (gross carrying amount)
- Impairment (-)
- Undue (gross carrying amount)
- Impairment (-)
D. Factors that include off balance
sheet credit risks
(*)
Receivables
Trade receivables
Other receivables
Related party Third party Related party Third party
Bank
deposits
93.846.591
677.638.973
18.730.633
24.154.083
371.782.181
-
31.955.270
-
-
-
93.846.591
676.283.576
18.730.633
24.154.083
371.782.181
-
1.355.397
1.985.839
(1.985.839)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
The guarantees consist of the letters of guarantees, checks and mortgages (Note 14).
The aging of the overdue receivables is as follows:
Overdue by 1-30 days
Overdue by 1-3 months
Overdue by 3-12 months
Overdue by 12 months
Total receivables
31 December 2013
8.887.056
4.986.160
605.529
27.013
14.505.758
31 December 2012
623.613
519.013
203.414
9.357
1.355.397
No collateral is received for the overdue receivables.
5/29/14 5:44 PM
71
Liquidity risk
Board of directors has built an appropriate liquidity risk management framework for the management of the Group’s
short, medium and long-term funding and liquidity management requirements. The Group manages liquidity risk by
maintaining adequate reserves, banking facilities and reserve borrowing facilities by continuously monitoring forecast
and actual cash flows and matching the maturity profiles of financial assets and liabilities.
The following tables detail the Group’s remaining contractual maturity for its non-derivative financial liabilities. The tables
have been drawn up based on the undiscounted cash flows of non-derivative financial liabilities based on the earliest
payment date. The table includes both interest and principal cash flows.
The maturities of the financial liabilities determined with respect to the contracts including the expected interest
payments as of 31 December 2013 is as follows:
Total cash outflow
More than
Contractual Maturity
Carrying according to contract Less than 3
3-12
1-5 Years
5 Years
Analysis
value
(I+II+III+IV) Months (I) Months (II)
(III)
(IV)
Non-derivative financial
instruments
352.980.075
361.086.089 29.641.642 153.212.545 161.814.210 16.417.692
Financial leasing liabilities
306.916
355.339
36.528
109.581
209.230
-
Expected Maturity
instruments
Trade payables
Other payables
Total cash outflow
value
(I+II+III+IV) Months (I)
405.611.478
478.899
408.423.000 367.032.448
478.899
422.805
3-12
Months (II)
1-5 Years
(III)
More than
5 Years
(IV)
28.144.878
25.576
13.245.674
30.518
-
The maturities of the financial liabilities determined with respect to the contracts including the expected interest
payments as of 31 December 2012 is as follows:
Total cash outflow
Contractual Maturity
Analysis
value
instruments
325.118.105
329.649.600 176.812.498
Financial leasing liabilities
346.073
412.800
51.150
Expected Maturity
instruments
Trade payables
Other payables
Total cash outflow
value
306.606.813
1.027.360
3-12
Months (II)
1-5 Years
(III)
More than
5 Years
(IV)
36.038.753 102.933.675 13.864.674
69.284
292.366
3-12
Months (II)
1-5 Years
(III)
More than
5 Years
(IV)
307.351.969 183.029.844 113.159.671
1.027.360
992.773
14.261
11.162.454
20.326
-
5/29/14 5:44 PM
72
Market risk management
The Group’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest
rates.
Market risk exposures are supplemented by sensitivity analysis, and stress scenario analysis.
There has been no change to the Group’s exposure to market risks or the manner in which it manages and measures the
risk in the current year.
Foreign currency risk management
Foreign currency denominated transactions cause foreign currency risk. The core principle of the foreign risk
management reduces to minimum foreign exchange position deficit or surplus and minimize the effect of exchange rate
fluctuation. Group’s net foreign currency position is due to the operational structure of the defense industry. No derivative
instruments have been used for the foreign currency risk management.
FOREIGN EXCHANGE POSITION
31 December 2013
1. Trade Receivables
2a. Monetary financial assets
2b. Non- monetary financial assets
3. Other
4. Current assets (1+2+3)
5. Trade receivables
6a. Monetary trade receivables
6b. Non-monetary trade receivables
7. Other
8. Long-term assets (5+6+7)
9. Total assets (4+8)
10. Trade payables
11. Financial liabilities
12a. Other monetary financial liabilities
12b. Other non-monetary financial
liabilities
13. Current liabilities (10+11+12)
14. Trade payables
liabilities
17. Non-current liabilities (14+15+16)
TL Equivalent
(Functional
currency)
517.490.318
67.038.285
164.131.899
40.540.689
789.201.191
306.131.239
160.060.832
6.204.910
472.396.981
1.261.598.172
182.815.320
151.595.532
184.520
US Dollar
127.291.868
16.455.073
45.172.234
17.344.170
206.263.345
94.310.935
15.897.227
1.390.415
111.598.577
317.861.922
20.921.280
71.028.176
86.454
EURO
83.708.934
9.019.330
21.403.656
1.166.888
115.298.808
32.474.625
42.111.364
134.576
74.720.565
190.019.373
44.100.439
32
-
Other
5.432.962
4.868.966
96.460
10.398.388
9.481.673
2.471.360
2.842.165
14.795.198
25.193.586
8.662.094
-
90.684.044
425.279.416
4.583.361
173.227.412
2.878.226
24.846.847
116.882.757
2.065.772
81.130.540
1.344.430
12.812.911
56.913.382
59.385
24.008
3.000
28.305
8.690.399
-
890.839.786
1.071.528.785
240.222.783
324.763.525
128.769.726
128.856.119
-
5/29/14 5:44 PM
73
31 December 2013
18. Total liabilities (13+17)
19. Net asset/liability position of offbalance sheet derivative financial
instruments (19a-19b)
19a. Hedged total financial assets
19b. Hedged total financial liabilities
20. Net foreign currency asset/liability
(9-18+19)
21. Net foreign currency asset / liability
position of monetary items (1+2a+5+6a10-11-12a-14-15-16a)
22. Fair value of derivative financial
instruments used in foreign currency
hedge
23. Hedged foreign currency assets
24. Hedged foreign currency liabilities
25. Exports
26. Imports
TL Equivalent
(Functional
currency)
1.496.808.201
US Dollar
441.646.282
EURO
185.769.501
Other
8.690.399
-
-
-
-
(235.210.029)
(123.784.360)
4.249.872
16.503.187
375.375.471
61.481.224
81.016.025
6.252.541
398.126.535
773.435.412
107.075.767
159.859.080
72.484.232
130.599.492
11.123.388
48.742.769
As of 31 December 2013, the Company’s financial statement prepared according to General Communiqué on
Accounting System Application (GCASA), has TL 1.112.855.063 (31 December 2012: TL 839.601.463) of open position.
Accompanying foreign exchange position which was prepared in accordance with CMB’s regulation is different from the
foreign exchange position of the financial statement which is prepared according to GCASA. The difference is mainly
due to the adjustments and classifications which are related with TAS 11 “Construction Contracts”.
5/29/14 5:44 PM
74
31 December 2012
1. Trade Receivables
2a. Monetary financial assets
2b. Non- monetary financial assets
3. Other
4. Current assets (1+2+3)
5. Trade receivables
6a. Monetary trade receivables
6b. Non-monetary trade receivables
7. Other
8. Long-term assets (5+6+7)
9. Total assets (4+8)
10. Trade payables
liabilities
13. Current liabilities (10+11+12)
14. Trade payables
liabilities
17. Non-current liabilities (14+15+16)
TL Equivalent
(Functional
currency)
308.867.574
132.143.809
158.302.828
21.949.488
621.263.699
203.090.990
161.626.292
2.025.790
366.743.072
988.006.771
85.390.517
88.006.274
159.522
US Dollar
74.817.504
25.777.276
38.456.575
10.938.361
149.989.716
72.012.858
19.831.009
254.948
92.098.815
242.088.531
10.810.475
32.219.068
89.488
EURO
74.617.074
36.636.104
37.369.154
947.409
149.569.741
28.328.091
53.695.427
663.241
82.686.759
232.256.500
26.125.252
13.000.197
-
Other
20.918
36.112
1.869.101
222.746
2.148.877
8.101.698
11.577
8.113.275
10.262.152
4.681.010
-
106.178.215
279.734.528
10.442.845
114.017.502
8.989.028
27.106.598
70.225.629
5.356.396
63.961.349
5.042.650
24.592.785
63.718.234
380.377
-
23.141
4.704.151
-
751.695.395
885.144.770
259.099.522
333.459.917
122.045.999
122.426.376
2.809.013
2.809.013
5/29/14 5:44 PM
75
31 December 2012
18. Total liabilities (13+17)
19. Net asset/liability position of offbalance sheet derivative financial
instruments (19a-19b)
19a. Hedged total financial assets
19b. Hedged total financial liabilities
20. Net foreign currency asset/liability
(9-18+19)
21. Net foreign currency asset / liability
position of monetary items (1+2a+5+6a10-11-12a-14-15-16a)
22. Fair value of derivative financial
instruments used in foreign currency
hedge
23. Hedged foreign currency assets
24. Hedged foreign currency liabilities
25. Exports
26. Imports
TL Equivalent
(Functional
currency)
1.164.879.298
US Dollar
403.685.546
EURO
186.144.610
Other
7.513.164
-
-
-
-
(176.872.527)
(161.597.015)
46.111.890
2.748.988
337.096.685
55.128.212
100.075.443
3.477.718
271.984.690
581.834.155
72.087.943
174.425.157
55.452.195
99.223.356
15.029.211
37.560.303
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76
Foreign Currency Sensitivity
The Group is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the
USD and the EURO.
The following table details the Group’s sensitivity to a 10% increase and decrease in the US Dollars and EURO. 10% is
the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents
management’s assessment of the possible change in foreign exchange rates. The sensitivity analysis includes only
outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 10%
change in foreign currency rates. This analysis includes group companies’ balance sheet items which are functional
currency of the non TL. The effects of %10 changes in foreign currency rate on financial statements is as follows;
Foreign currency sensitivity table
31 December 2013
Profit/Loss
Equity
Appreciation of
Depreciation of
Appreciation of
Depreciation of
foreign currency
foreign currency
foreign currency
foreign currency
Appreciation of US Dollars against TL by 10%
1- USD denominated net
assets/liabilities
2- Hedged amount against
USD risk (-)
3- Net effect of USD (1+2)
(26.419.296)
26.419.296
(26.419.296)
26.419.296
Appreciation of EURO against TL by 10%:
4- EURO denominated net
assets/liabilities
EURO risk (-)
6- Net effect of EURO (4+5)
-
-
-
-
1.247.975
(1.247.975)
-
-
1.247.975
(1.247.975)
-
-
Foreign currency sensitivity table
1- USD denominated net
assets/liabilities
USD risk (-)
3- Net effect of USD (1+2)
4- EURO denominated net
assets/liabilities
EURO risk (-)
6- Net effect of EURO (4+5)
31 December 2012
Profit/Loss
Equity
Appreciation of
Depreciation of
Appreciation of
Depreciation of
foreign currency
foreign currency
foreign currency
foreign currency
Appreciation of US Dollars against TL by 10%:
(28.806.284)
28.806.284
(28.806.284)
28.806.284
Appreciation of EURO against TL by 10%:
-
-
-
-
10.844.133
(10.844.133)
-
-
10.844.133
(10.844.133)
-
-
Interest rate risk management
As of 31 December 2013 and 2012, since all of the loans obtained by the Group are fixed-rate loans, the Group is not
exposed to significant interest rate risk.
As of 31 December 2013, since the Group does not have interest bearing financial assets,(31 December 2012: null) no
significant interest rate risk has been exposed.
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77
Price risk
The Group usually enters into fixed price contracts, therefore, is not exposed to any major price risk.
Hierarchy of fair value
The Group classifies the fair value calculations with respect to the base of the input data of each financial instrument
using three levels of hierarchy. According to this, Level 1 contains the valuation techniques used for determining
the market values of the financial instruments in the active market, Level 2 contains the direct and indirect valuation
techniques that uses the observable current market transactions and Level 3 uses the valuation techniques without the
observable current market transactions.
As of 31 December 2013 and 31 December 2012, the Group’s financial assets at their fair values are as follows:
30. FINANCIAL INSTRUMENTS FAIR VALUE DISCLOSURES AND EXPLANATIONS ON HEDGE ACCOUNTING
31 December 2013
Financial assets
Cash and cash
equivalents
Blocked deposits
Financial investments
Trade receivables
Borrowings
Trade payables
Other payables
31 December 2012
Financial assets
Cash and cash
equivalents
Blocked deposits
Financial investments
Trade receivables
Borrowings
Trade payables
Other payables
(*)
Financial
assets at fair
value
Loans and
receivables
(including
cash and cash
equivalents)
- - -
103.683.817
18.805.762
1.094.983.102
- - -
Financial
assets at fair
value
Loans and
receivables
(including
cash and cash
equivalents)
- - -
352.533.570
19.361.643
771.485.564
- - -
Financial
Assets held
liabilities at
for sale amortized cost
- - 12.724.210
- - - -
103.683.817
18.805.762
12.724.210
- 1.094.983.102
353.286.991
353.286.991
405.611.478
405.611.478
478.899
478.899
Financial
Assets held
liabilities at
for sale amortized cost
- 12.017.562
- - - -
Carrying
value
325.464.178
306.606.813
1.027.360
Carrying
value
Note
32
16
28
5
28
5
6
Note
352.533.570
19.361.643
12.017.562
771.485.564
32
16
28
5
325.464.178
306.606.813
1.027.360
28
5
6
The Group’s management assesses that the carrying value reflects the fair value of financial instruments (Note 28).
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78
31. EVENTS AFTER THE REPORTING PERIOD
The amount of contracts signed by the Group after the balance sheet date is approximately TL 124 Million and USD 552
Million.
32. EXPLANATORY NOTES TO THE STATEMENT OF CASH FLOWS
Cash
Cheques received
Demand deposits -TLForeign currency demand deposits
Time deposits -TLForeign currency time deposits
Accrued income
Other cash equivalents
31 December 2013
112.298
997.189
23.180.671
35.607.471
43.776.112
50
10.026
103.683.817
31 December 2012
87.124
3.408
978.948
7.869.491
219.020.991
124.203.686
347.422
22.500
352.533.570
As of 31 December 2013, the Group has TL 43.776.112 of foreign currency time deposits at various banks with
maturities in January 2014 and interest rates between 0,25% and 2,75%.
As of 31 December 2013, the Group has TL 35.607.471 of time deposits at various banks with maturities between
January-February 2014 and interest rates between 8,45% and 10,10%.
As of 31 December 2012, the Group has TL 124.203.686 of foreign currency time deposits at various banks with
maturities in January-April 2013 and interest rates between 0,50% and 3,30%.
As of 31 December 2012, the Group has TL 219.020.991 of time deposits at various banks with maturities between
January 2013 and interest rates between 4,50% and 8,50%.
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79
Independent Auditor’s Report
(Convenience Translation Of The Report And The Consolidated Financial Statements Originally Issued In Turkish)
To the Board of Directors of
Aselsan Elektronik Sanayi ve Ticaret A.Ş.
1. We have audited the accompanying consolidated statement of financial position of Aselsan Elektronik Sanayi ve
Ticaret A.Ş. (the “Company”) and its subsidiaries (together referred as the “Group”) as of 31 December 2013, and
the consolidated statement of profit or loss, consolidated statement of other comprehensive income, consolidated
statement of changes in equity and consolidated statement of cash flows for the year then ended, and a summary
of significant accounting policies and other explanatory information.
Management’s Responsibility for the Consolidated Financial Statements
2. Management is responsible for the preparation and fair presentation of these consolidated financial statements in
accordance with Turkish Accounting Standards (“TAS”) published by Public Oversight Accounting and Auditing
Standards Authority (“POA”), and for such internal control as management determines is necessary to enable the
preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor’s Responsibility
3. Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We
conducted our audit in accordance with the auditing standards published by Capital Markets Board. Those
standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable
assurance whether the consolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
consolidated financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or
error. In making those risk assessments, the auditors consider internal control relevant to the entity’s preparation and
fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal
control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness
of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated
financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
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80
Independent Auditor’s Report
(Convenience Translation Of The Report And The Consolidated Financial Statements Originally Issued In Turkish)
Opinion
4. In our opinion, the consolidated financial statements give a true and fair view of the consolidated financial position
of Aselsan Elektronik Sanayi ve Ticaret A.Ş. and its subsidiaries as at 31 December 2013, and of their consolidated
financial performance and their consolidated cash flows for the year then ended in accordance with TAS (please
see Note 2).
Reports on Other Legal and Regulatory Requirements
5. In accordance with Article 402 of Turkish Commercial Code No. 6102 (“TCC”), the Board of Directors provided us
all the required information and documentation in terms of audit; and nothing has come to our attention that may
cause us to believe that the Group’s set of accounts prepared for the period 1 January-31 December 2013 does not
comply with the code and the provisions of the Company’s articles of association in relation to financial reporting.
6. In accordance with Article 378 of Turkish Commercial Code No. 6102, in publicly traded companies, the board of
directors is obliged to establish a committee consisting of specialized experts, to run and to develop the necessary
system for the purposes of early identification of any risks that may compromise the existence, development and
continuation of the company; applying the necessary measures and remedies in this regard and managing such
risks. According to paragraph 4 of Article 398 of the same code, the auditor is required to prepare a separate report
explaining whether the Board of Directors has established the system and authorized committee stipulated under
Article 378 to identify risks that threaten or may threaten the company and to provide risk management, and, if
such a system exists, the report, the principles of which shall be announced by POA, shall describe the structure of
the system and the practices of the committee. This report shall be submitted to the Board of Directors along with
the auditor’s report. Our audit does not include the evaluation of the operational efficiency and adequacy of the
operations carried out by the management of the Group in order to manage these risks. As of the balance sheet
date, POA has not announced the principles of this report, yet. Therefore, no separate report has been drawn up
regarding this matter. On the other hand, the Company established the mentioned committee on 10 April 2012,
and the committee is comprised of six members. Since the date of its establishment, the committee has held eight
meetings for the purposes of early identification of any risks that may compromise the existence and development
of the Company, applying the necessary measures and remedies in this regard and managing such risks, and has
submitted the relevant reports to the Board of Directors.
DRT BAĞIMSIZ DENETİM VE SERBEST MUHASEBECİ MALİ MÜŞAVİRLİK A.Ş.
Member of DELOITTE TOUCHE TOHMATSU LIMITED
Erdem Taş, SMMM
Partner
Ankara, 5 March 2014
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81
Annual Report of Board of Directors with Respect to the Period
1 January - 31 December 2013
1. Principles on preparation
The annual report of the Board of Directors is prepared on the basis of Capital Markets Board of Turkey (CMB) Financial
Reporting standards and Communiqué Series II, No: 14.1 “Principles of Financial Reporting in Capital Markets” dated 13
June 2013.
2. Commercial title and trade registry number of the company and contact information pertaining to its headquarters,
branches and its website address
The commercial title of the Company is Aselsan Elektronik Sanayi ve Ticaret A.Ş. and its trade register number is 31177.
It’s registered address is Mehmet Akif Ersoy Mahallesi 296. Cadde No:16 06370 Yenimahalle / Ankara. Phone: +90 (312)
592 10 00, Fax: +90 (312) 354 13 02. Internet address: www.aselsan.com.tr
The Company has a branch in the Republic of South Africa, Pretoria with the contact address Building 4, Room 005
CSIR Campus, Meiring Naude Drive, Pretoria Gauteng, 0001, South Africa. Phone: +27 (0) 12 349 26 13, Fax: +27 (0) 12
349 25 44.
The Company has an office in United Arab Emirates, Abu Dhabi with the contact address Industrial City of Abu Dhabi 1,
Plot 22J1 PO Box: 133627 Abu Dhabi/UAE. Phone: +971 2 5508808.
3. Organizational structure of the company
In connection with the projects which require investment and manufacturing, the Company has been incorporated in
four divisions which are Communication and Information Technologies (HBT), Microelectronics, Guidance and ElectroOptics (MGEO), Defense Systems Technologies (SST) and Radar, Electronic Warfare and Intelligence Systems (REHİS).
In Ankara, The Company carries on its engineering activities in Teknokent, manufacturing and engineering activities in
two respective facilities located in Ankara Macunköy (Headquarters) and Akyurt. In addition, SST Group has directorates
in İzmir; Traffic Systems Directorate, in İstanbul; Marine Systems Directorate and Product Support Directorate. There has
been no change in the Company’s organizational structure within its activity period.
ASELSAN Elektronik Sanayi ve Ticaret A.Ş. (Company) and its affiliate companies Mikrodalga Elektronik Sistemler A.Ş.
(“MİKES”) and AselsanNet Elektronik ve Haberleşme Sistemleri Sanayi Ticaret İnşaat ve Taahhüt Ltd. Şti. (“AselsanNet”)
are active in the same field as the Company and their financial statements are consolidated by the Company. They will
jointly be referred to as the “Group”.
4. The Company’s capital and partnership structure with the changes during the accounting period
The capital structure as of 31 December 2013 and 31 December 2012 are as follows:
Partners
Turkish Armed Forces Foundation (TAFF)
Other shareholders
Quoted in stock exchange
Nominal capital
Share capital adjustment
Inflation adjusted capital
Share (%) 31 December 2013 (TL)
84,58
422.912.812
0,12
577.846
15,30
76.509.342
100
500.000.000
98.620.780
598.620.780
Share (%) 31 December 2012 (TL)
84,58
422.912.812
0,12
577.846
15,30
76.509.342
100
500.000.000
98.620.780
598.620.780
The nominal capital of the Company is TL 500.000.000 (TL fivehundred million) and is divided into 50.000.000.000 (fifty
billion) shares, each having a nominal value of 1 Kuruş (1% of 1 Turkish Lira). 30.272.727.273 (Thirtybillion twohundred
and seventytwomillion sevenhundred and twentyseventhousand twohundred and seventythree) of the shares are
Group A shares and 19.727.272.727 (nineteenthousand sevenhundred and twentysevenmillion twohundred and
seventytwothousand sevenhundred and twentyseven) of the shares are Group B Shares. All shares are in the name of
the holder. Group A shares are nominative preferred shares and 6 of the Members of the Board of Directors are elected
among the Group A preferred shareholders or among the candidates designated by them. Furthermore, while issuing a
new share, the proportion of the Group A nominative shares in the capital is preserved.
No change has occurred in the shareholders’ structure and the Company’s capital during the period.
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82
5. Reporting period, title of the partnership, names, surnames and jurisdiction of the chairman, members and the
managing members who served in the board of directors during the period, the term of office of the duties (with
commence and end dates)
Members of the Board of Directors
Pursuant to the provisions of the Company Articles of Association, the Board of Directors comprise 6 members to be
elected among the Group A preferred shareholders or among the candidates designated by them along with the 3
independent members to be elected in scope of the CMB regulations which make 9 members in total. Information
regarding the Members of the Board of Directors are as follows:
Members of the Board of Directors (*)
Name and Surname
Necmettin BAYKUL
Erhan AKPORAY
Halil SARIASLAN
Lamia Zeynep ONAY
Hasan CANPOLAT
Position
Chairman/ Managing Member
Vice Chairman/ Managing Member
Independent Member (**)
Member
Orhan AYDIN
Member
Member
Murat ÜÇÜNCÜ
Member
Date of General Assembly
for Assignment
March 2013
March 2011
March 2013
March 2013
March 2013
BoD decision on 16.05.2013
End of Term of Office
March 2014
March 2014
March 2014
March 2014
March 2014
First General Assembly
to be held
BoD decision on 16.05.2013 First General Assembly
to be held
to be held
to be held
There is no executing member in the Board of Directors.
The independence statements of the Independent Members, which comply with the Corporate Governance Principles of Capital Market Board, are exist. Statement of
Independence of independent members are attached at the end of Corporate Governance Principles Compliance Report.
(*)
(**)
The Members of the Board of Directors are entitled with the authorizations stipulated in the Turkish Code of Commerce
(TCC) and in article 13 of the Articles of Association of the Company.
There is no authorization granted to the ruling shareholders with regard to the Company Management, members of the
board of directors, senior executives and to their spouses and relatives up to second degree and kins by marriage for
them to perform acts which would cause conflict of interest with the Company or its affiliates or to compete.
There is not any forbidden operation with the Company which board members perform their own or on behalf of
someone. There is no operation regarding prohibition of competition by member of the board.
Changes of Members of the Board of Directors During the Period 1 January - 31 December 2013:
During the ordinary General Assembly Meeting held on 29 March 2013, Necmettin BAYKUL, Birol ERDEM, Ahmet
ŞENOL, Osman Kapani AKTAŞ and Aykud Alp BERK were elected for 1 year of service, Erhan AKPORAY was decided
to continue service for 1 year; Halil SARIASLAN, Lamia Zeynep ONAY ve Cumhur Sait Şahin TULGA were elected as
independent members of the Board of Directors for 1 year of service.
The Vice Chairman of Board of Directors Birol ERDEM and members of the Board of Directors Osman Kapani AKTAŞ,
Ahmet ŞENOL and Aykud Alp BERK, have resigned as of 15 May 2013. For the vacant positions with the resignations
Hasan CANPOLAT, Mustafa Murat ŞEKER, Orhan AYDIN and Murat ÜÇÜNCÜ were elected on the Board of Directors
meeting held on 16 May 2013 according to the article 363 of Turkish Commercial Code and it was decided to be
submitted to the approval on the upcoming General Assembly.
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83
6. Main factors that affect the performance of the company, significant changes occurred in the environment where
company is active, policies implemented by the company with respect to these changes, investment and dividend policy
of the company to strengthen its performance
The Company operates in the field of defense industry. Regarding the uncertainty after the global crisis, the resources
allocated for defence expenditures by the countries varies. Since 2008, Turkey has preserved the level of resources it
has allocated to defense industry while it has increased the share of domestic procurement.
Given the nature of defence industry, the project lifetime varies between 4-5 years in average. In this context, 2008
global financial crisis and the subsequent fluctuations did not have an adverse effect on the Group. Group takes
actions for long-term and has signed contracts worth approximately TL 8,3 Billion (approximately USD 3,7 Billion) as of
31 December 2013. The Group’s aims are parallel to designating target regions/countries, focusing on these markets
and concentrating on marketing projects, direct sale, joint productions, technology transfer, strategic expansions with
international firms for sales to third countries.
The revised dividend distribution policy that has been presented to shareholders’ information on the General Assembly
of 2013 regarding 2012 operations is as follows.
The amount of dividends shall be calculated by taking into consideration the pertinent legislation, the provisions of the
articles of association, the equity capital ratio of the Company, the sustainable growth rate, market value and cash flows
as the distributable profit by referring to the annual profit that is indicated in the financial statements of the Company,
which had been prepared according to the laws and regulations (after subtracting from the reserves that had to be set
aside according to the law, tax, funds, financial liabilities and the losses from previous years and adding the donations).
Then, the recommendation prepared by the Board of Directors on the way such dividends would be distributed, i.e.
as cash on the set dates, or as bonus shares that represent the profit which would have been added to the capital, is
submitted to the approval of the General Assembly.
Following the approval of the General Assembly, the designated profit distribution is made on the determined dates
by General Assembly within the legal timelines to the shareholders. There are no privileges in the Company regarding
entitlement to the Company’s profit. The profits are distributed for all of the shares evenly without considering the
acquisition or disposal dates of the shares.
According to the Capital Markets Law and the other legislation as well as the provisions of the articles of association,
and as per the resolutions of the general assembly, in the year 2013 TL 78.500.000 (TL 0,157 per TL 1 share, 15,70%
gross over capital) and (net TL 66.725.000 per TL 0,13345 - TL 1 share, 13,345% over capital) of the profit for 2012 has
been distributed to shareholders as cash dividend.
7. Financial resources of the company
The most substantial financial resource of the Company comprises the advance / interim payments taken in scope of the
executed agreements and by the profit gained by the main activities.
During 1 January-31 December 2013 period, the cash requirements was met with the existing cash, cash inflows and
new loans received in accordance with the decreasing interest rates in the first half of the year. In the scope of Eximbank
Loan Program, during 1 January-31 December 2013 period, “Discounted Foreign Currency Loan” was obtained with
the following maturities respectively: USD 10 Million with 120 days of maturity, USD 24,5 Million and EUR 17,5 Million
with 180 days of maturity, USD 60 Million with 240 days of maturity. In the same period, the entity has obtained USD 25
Million loan with fixed rate of 2,1% for 5 years maturity (21 March 2018) with a grace period of 3 years from Defense
Industry Support Fund.
8. Risk management policies of the Company
a. Corporate Risk Management
The Company’s risk management policy is to develop and implement efficient and productive methods and systems in
order to manage (define, rate, monitor, evaluate and form activity plans aimed at minimizing the effects) and anticipate
the potential risks which it may be exposed to.
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84
In the Corporate Risk Management studies, “top down” and “bottom up” approaches are applied together and the
significant risks which are at a critical level to affect the Company to reach its long term targets are defined and
classified under Strategic, Operational, Managerial, Financial and External Factors and are submitted to the Board of
Directors and Independent Audit Company with the measures to be taken.
In order to identify the potential risks beforehand and to enable the management of these risks in compliance with the
Company’s risk-taking approach, an Early Risk Detection and Management Committee was established in 2012.
In the scope of the operations carried out by the committee, the inventory related to the risks which could prevent
the Company to reach its strategic targets were defined and prioritized pursuant to the opinions and proposals of the
Company top management. The most significant risk factors defined in this scope are explained below.
Single Customer Dependency in Sales
The main customers of the Company are State Institutions such as Turkish Armed Forces. This brings about the steering
of the Company’s operations in accordance with the public demands.
The minimization of this risk is anticipated by the Company as the result of the studies carried out pursuant to the targets
aimed at increasing export sales and transferring existing knowhow to the private sectors.
Cut-Backs in Defense Expense Budgets
The Company realizes its sales both domestic and abroad in particular to the armed forces and governmental
institutions. Defense expenditures in these markets depend on political and economic factors and may vary from year to
year. The Governments’ substantial cut-backs in the defense budget equipment items shall have a significant impact on
the Company’s activities and sales.
In recent years in our country, possible cuts in defense expenses are expected to be financed with other items such as
personnel and logistics instead of equipment. Such improvements, as they increase the need for equipments produced
with high technology, will bring new opportunities to the Company.
Supplier and Subcontractor Risks
As for the Company which works with various number of local and foreign suppliers and subcontractors, provision of
material quality and sustainable supply is essential in terms of operational results.
The probable inter-country political or economic developments constitute a supply risk for the critical materials supplied
from abroad. In order to minimize this risk, importance is given to the domestic supply of these critical materials.
Compliance with Technological Developments
An important feature of defense sector is high level technology and continuous progress in the technology utilized. This
situation leads changes in demands of the customers with regards to the product, systems, services and etc. Investing
in and utilizing new technologies in the products is necessary to increase the Company’s power of competition and
success. Effective and systematical technology management and timely investment of value added technology is a
priority for the profitability and sustainability of the Company. Relations developed with the armed forces and related
procurement authorities support the predetermination of the demands. The engineering directorates and “Technology
Supreme Board” are compatible with the developments in technologies which shape the future.
Fixed Price and Fixed Term Contracts
The products and systems produced by the Company have a complex structure when their technology, high quality and
performance requirements, tough working conditions and sales contract stages are considered. This complexity, being
a general feature of the sector in which the activities are carried out, is an element to cause the design, development
and production cost estimations and contract terms to go above their initial planned status. The deviations (inflation,
exchange rate and interest) in the assumptions made during the contract term may change as a result of an increase or
decrease in profits for the fixed price contracts.
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85
Global Economic Slowdown and Financial Crisis
Recession and crisis in global economy have an adverse impact on the economic activities of the countries and as a
result may cause cut-backs in the defense budgets. This situation brings along the risks of decrease or cancellation
in local or foreign customer requests, pressure of the customers regarding price and profitability, slowdown of
investments with respect to the Company. Another impact of the global crisis is the increase of costs in connection with
the vagueness caused by the fluctuation in financial markets. When the economic situation of Turkey is considered,
it is anticipated that the possibility of the mentioned risks to be realized in the prospective period shall be low, yet the
markets are still monitored very closely.
b. Financial Risk Management
In forming the financial risk management model of the Company, “Asset- Liability Management (ALM) Model” has been
taken as the basis and foreign exchange risk, interest risk and liquidity risks have been defined as financial risks.
In the balance-sheet financial risk management, exchange risk, interest risk and liquidity risk which shall affect the
assets and liabilities of the Company are defined, measured, managed and reported. Therefore, the adverse affects of
the changes in financial markets on the Company’s financial performance are minimized. In order to minimize the risks,
the derivative financial tools are also utilized.
Off-balance-sheet financial risks arise from the inconsistency of cash inflows and outflows on the basis of currency or
the deviation of the cash flow dates. Pursuant to off-balance-sheet financial risk management, financial risk management
techniques aimed at protecting the targeted profitability of the projects are used.
Financial risk management is also applied by the Company’s subsidiaries and affiliates pursuant to the policies
approved by their own managing bodies.
(1) Foreign Exchange Risk and Management Policy
The main principle in foreign exchange management is to minimize the impact of the foreign exchange fluctuations by
preventing foreign exchange short or long positions.
To define foreign exchange risks, taking the periodical foreign exchange position into consideration, loss and profits
which would arise from upwards or downwards changes are calculated and the possible impacts of the foreign
exchange risk incurred are measured. In this scope, the possible changes in foreign currency sensitive assets and
liabilities for prospective financial periods are considered and the foreign currency position is estimated. The short
foreign exchange position of the Company is monitored in balance sheet and off balance sheet. The Company finances
its activities mainly with the advance payments received in foreign currency and the advances taken are subject to
revaluation as they are denominated in foreign currency. Although substantial part of the advances taken is used
in foreign currency denominated material purchases , monitoring the purchased material in terms of TL as they are
recorded in the balance sheet causes the Company to be in short position. Such short position is structural as it is
obligatory that the stocks and research and development costs are monitored in terms of TL and derivative tools out of
cash portfolio are not used in its management.
During the periods when Turkish Lira devalues, net foreign exchange loss is incurred but the sales revenues and
operating margin increase due to the reason that the 78,2% of the Company’s backlog is denominated in foreign
currency. Therefore, the adverse impact of the net foreign exchange loss is balanced with the increase in the operating
margin.
As of 31 December 2013, as per financial statements prepared according to the Turkish General Notification of
Accounting System Application (TGNASA), the company has a short position of TL 1.112.855.063 (31 December 2012:
839.601.463 TL). 72% of the related position is USD (31 December 2012: 80%) and 28% of the balance is EURO (31
December 2012: 20%).
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The foreign exchange gain and loss noted in the financial statements are mainly comprised of the information indicated
in the financial statements prepared in accordance with the TGNASA including the subsidiaries Mikes and AselsanNet
which are subject to consolidation.
Foreign Exchange Sensitivity Analysis Table of the Company Prepared According to TGNASA
As of 31 December 2013
Profit/Loss
Foreign currency
gaining value
In the event USD changes by 10% against TL:
1- USD Net Assets/Liabilities
(80.691.917)
In the event EURO changes by 10% against TL:
2- Euro Net Assets/Liabilities
(31.356.086)
Foreign currency
losing value
80.691.917
31.356.086
(2) Interest Risk and Management Policy
The interest risk is defined by using the difference between the assets sensitive to interest in a certain term and liabilities
sensitive to interest (gap analysis) and such difference is calculated by the help of the maturity ladder of the balance
sheet. In the scope of fund management, a sensitivity test is carried out to measure the interest risk of the interest
sensitive assets in the portfolio.
As of 31 December 2013, the Company has a credit balance obtained from the Defence Industry Support Fund, for
the first portion worth USD 40 Million with a grace period of 3 years, with a maturity of 5 years (18 August 2016) and
with a fixed interest rate of 2,1% and for the second portion worth USD 25 Million with a grace period of 3 years, with
maturity of 5 years (21 March 2018) and with a fixed interest rate of 2,1%, which sum up to USD 65 Million. No interest
risks are deemed to exist. In order to finance the export, as of 31 December 2013 the Company has USD 60 Million loan
balance obtained from Turkish Eximbank. The loans have a maturity of 240 days and they are indexed to LIBOR. Since
LIBOR levels tend to remain low and Türk Eximbank demands 1% additional spread rate in order to Support export, the
Company’s sensitivity to floating rate loans is kept at minimum.
(3) Liquidity Risk and Management Policy
Liquidity Risk comprises the risks when the matured liabilities cannot be fulfilled, when the increase in assets cannot be
funded and the risks which arise due to the transaction realized in non-liquid markets.
Liquidity risk is managed by considering short term liabilities, assets with high liquidity, anticipated cash flows and
balance sheet maturity ladder. In this scope, sufficient level of cash and assets which may be convertible to cash is
maintained, attention is paid that the Company finances its activities without using any loans and the resources of
funding are varied by keeping the bank credit limits ready for any instant cash requirement. As of 31 December 2013,
58% of the total resources are comprised by the advance payments taken and when this is considered, the liquidity risk
is at low levels as no maturity inconsistencies are experienced in the working capital management.
(4) Credit Risk and Management Policy
The substantial part of the Company’s present credit balance are comprised by the performance bonds and advance
payment guarantees (letter of guarantees) granted to the customers in scope of agreements and which are monitored
off balance sheet. Within this scope to manage the credit limits at the banks, risk balances are monitored periodically
and necessary transactions are done for the letter of guarantees related to the agreements of which the liabilities are
fulfilled to be deducted from the risk.
(5) Capital Risk Management
In the capital management of the Company, enabling a debt-equity balance that would minimize the financial risks and
costs to the lowest level is taken care of. The objective of the Company is to guarantee a consistent growth by means
of the funds gained through its activities while providing its shareholders a regular dividend income and. The Company
aims to keep its capital structure in balance by means of dividend payments as cash or in return for shares and
issuance of new shares.
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9. Other issues not included in the financial statements but which would be beneficial to the users
As of 31 December 2013, the Company has a backlog of TL 8,3 Billion (approximately USD 3,7 Billion) and these orders
include the period until 2020.
10. Significant events between 1 January - 31 December 2013 accounting period and the Board of Directors Meeting date
when the relevant financial statements shall be negotiated
a) An agreement concerning the development of a radar valuing TL 32.975.000,- has been signed between ASELSAN
and TÜBİTAK-SAGE. The deliveries within the context of this agreement will be made between 2014 and 2017. This
disclosure is made according to the permission of TÜBİTAK-SAGE dated 02.01.2014.
b) An agreement concerning the supply of Laser Guidance Kits for the need of Turkish Air Force valuing TL 31.000.000,has been signed between ASELSAN and Ministry of National Defense. This disclosure is made according to the
permission of Ministry of National Defense that has arrived to our company on 06.01.2014.
c) An agreement concerning the supply of Precision Guidance Kits for the need of Turkish Air Force valuing TL
57.891.200,- has been signed between ASELSAN and Ministry of National Defense. This disclosure is made according
to the permission of Ministry of National Defense that has arrived to our company on 06.01.2014.
d) ASELSAN has received an order from a foreign customer concerning electronic warfare systems valuing USD
26.070.132,-. The deliveries within this context will be made in 2014.
e) An agreement concerning ANKA-S Project/Payload Systems Sub-Contract valuing USD 33.576.675,- has been signed
between ASELSAN and TUSAS on 22.01.2014. The deliveries within this context will be made in 2015-2018.
f) An agreement concerning General Utility Helicopter Program valuing USD 491.468.585,- has been signed between
ASELSAN and TUSAS on 21.02.2014. The deliveries within this context will be made in 2018-2025.
11. Anticipations for the development of the company, significant developments with respect to company activities and
financial status, to observe whether past period targets were reached or not, whether the general assembly resolutions
were fulfilled or not, and in the event the targets were not reached and the resolutions were not fulfilled, information
regarding the grounds and assessments
On 5 March 2013, the guidance on Group’s financial results of 2013 shown below were disclosed to public:
•Consolidated income growth (TL): 15-17%
•EBITDA (Consolidated and adjusted): 18-20%
•Consolidated investment expenditure: Approximately TL 150 Million
•Ratio of the consolidated Research and Development (R&D) expenses financed by Company resources to the
consolidated sales: 7%
The guidance is based on the year average of USD/TL parity to be 1,85; EUR/TL parity to be 2,33. In 2013, the average
USD/TL parity was 1,91 and 2,53 for EUR/TL parity. The growth in consolidated income in line with this increase in
exchange rates is 33% in 2013. EBITDA (Consolidated and adjusted) was 20%. Ratio of the consolidated Research and
Development (R&D) expenses was 6%.
The expectations of Group on consolidated financial results for 2014 under normal circumstances are as follows:
•Consolidated income growth (TL): 15-17%
•EBITDA (Consolidated and adjusted):18-20%
•Consolidated investment expenses: Approximately TL 175 Million
•Ratio of the consolidated Research and Development (R&D) expenses financed by Company resources to the
consolidated sales: At the level of %6
These expectations are based on the yearly average of USD/TL parity to be 2,20: EUR/TL parity to be 2,95.
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The Company’s vision is “to become one of the first 50 defence industry companies in the World”. 5 year strategic
plans are prepared in the context of this vision. All operations are realized consistent with the strategic plan, in order
to reach the defined targets. In this respect, qualified labor force, maturized procedures, resources reserved for R&D,
infrastructure and organization and technology at World level have been maintained.
The Company has been in the most prestigious list, “Defense News Top 100”, which is published by “Defense News”
magazine since 7 years and is aimed to increase its ranking in the list.
In order to achieve the sustainable growth:
•The new facility investment continues in line with the plan in the field of Radar and Electronic Warfare in Golbasi,
Ankara The facility is expected to become operational in 2014.
•Technology development and conversion investments have continued in Macunkoy facility with the new Printed Circuit
Facility with a closed area of 6.587 m2 where production started in 2012.
•The joint ventures, United Arab Emirates and Kazakhstan established in 2011 and joint venture in Jordan established
in 2012, have completed most of their investments.
•The quality and technological perspectives of the cooperations formed with the universities have been increased.
•The efforts to form an eco-system with the sub-industry companies and SME’s have continued.
•Since the entity is the biggest R&D center of the country, it is strategically important to have matured processes with
technological depth and concentration. All Group Directorates have completed the certification process of Capability
Maturity Model Integration-L3.
•The company aims to use its knowledge in civil areas other than defence industry. In this context, a cooperation
contract was signed for domestic production of numerical tacograph. In addition, an R&D contract was signed for the
base stations in the context of 4th generation communication technology with local opportunities.
With reference to the decisions taken on General Assembly Meeting held on March 29, 2013;
•The registered capital ceiling has been raised from TL 500.000.000 to TL 1.000.000.000.
•The profit distribution payments for 2012 period began on 31 May 2013.
•The amendment on 6th article regarding the upper limit of registered capital in the Company’s Articles of Association’s
and amendments on articles 1., 3., 4., 5., 9., 11., 12., 13., 14., 15., 16., 17., 18., 19., 21., 23., 24., 25., 26., 27., 28., 29.,
30., 31., 32., 33., 34., 35., 36., and 37 in order to comply with Turkish Commercial Code numbered 6102 and Capital
Market Law numbered 6362, was registered on 4 April 2013 and announced on 9 April 2013 by the Ordinary General
Assembly Meeting Decisions, and copies of the related Trade Registry Gazette was sent to CMB and the Ministry of
Customs and Trade.
12. Corporate Governance Principles Compliance Report
The report is provided with Annex-1.
13. Research and Development Activities Realized
The Group, being a leading defense industry establishment developing advanced technology system solutions on
land, air, naval and aerospace platforms, has given importance to R&D activities and technological gains and targets to
spend approximately 6% of the annual turnover to its R&D activities financed with its own resources.
By monitoring all kinds of technological developments with respect to product/technology systems for land, air, naval
and aerospace platforms, the design, development and production of product/technology which includes advanced
technology on the basis of not only using the technology but also having a structure to transfer/sell the technology it
develops in national and international cooperation environments.
In order to increase the national contribution share in the projects, great effort is being paid for utilizing the existing local
technological possibilities. For this purpose, cooperations with universities and some R&D institutions are formed and
using of local subcontractors and sub-industry have become significant.
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As for the projects carried out within the Group, the R&D discount in compliance with the provisions of the Law on
Corporate Tax numbered 5520 and R&D central application pursuant to the Law regarding the support of R&D activities
numbered 5746 are being implemented together. For the R&D projects which are not aimed for public, the approval of
TEYDEB (Technology and Innovation Support Programs Directorate) is taken and they are supported by this institution.
Within the Company, there are 4 R&D centers namely SST, REHİS, MGEO and HBT. MİKES, which is an affiliate subject
to consolidation and which also has 1 R&D center. 2.293 people are employed at the Group R&D centers.
The Company also is active in Teknokent facility within Middle East Technical University in scope of the Law numbered
4691 on Technology Development Regions. 163 people are employed within this region.
14. Amendments to the Articles of Association during the period along with the grounds
The amendment on 6th article regarding the upper limit of registered capital in the Company’s Articles of Association’s
and amendments on articles 1., 3., 4., 5., 9., 11., 12., 13., 14., 15., 16., 17., 18., 19., 21., 23., 24., 25., 26., 27., 28., 29.,
30., 31., 32., 33., 34., 35., 36., and 37 in order to comply with Turkish Commercial Code numbered 6102 and Capital
Market Law numbered 6362, was registered in the Trade Registry and noticed in the Turkish Trade Registry Gazette.
The increase of capital ceiling from TL 500.000.000 to TL 1.000.000.000 which is decided with the Board of Directors
meeting on 31 October 2012 was approved on the general assembly meeting dated 29 March 2013 and registered and
noticed with the general assembly decisions.
Between 1 January - 31 December 2013 period, no extraordinary General Assembly meeting was held.
15. The kinds of issued capital market instruments and their amounts, if any
None.
16. The sector the Company operates in and its position within the sector
The Company is a leading defense industry institution developing advanced technology system solutions in land, air,
naval and aerospace platforms.
The Company being an institution of TAFF is in a position of a technology center in the fields of design, development,
manufacturing, system integration, modernization and after sales services of military and civil communication systems,
avionic systems, electronic warfare and intelligence systems, radar systems, command and control systems, naval
warfare systems, electro-optic systems and products.
The Company has increased its rankings to 74th in 2012 from 76th in 2011 in the “Defense News Top 100” list. In addition
Aselsan has increased its rankings to 85th in 2012 in the “SIPRI Top 100” List from 86th in 2011 in which the Company is
the first Turkish firm that has taken place within 7 consecutive years.
The Company is 46th in ISO 500 from-production-to-sale list and 41st in the category of privately owned companies in
2012. Also, the Company became 63rd of “Fortune 500 Turkey” list where it was 69th in 2011 and 33rd in “The Companies
to Increase their Exports the Most” 76th of “Capital 500 Turkey” list in 2012 rankings where is was 79th in 2011.
The Company is in the first position in the ranking of Deloitte “Deloitte Technology Fast: 50 Turkey-Big Stars”.
The Company became 128th in 2012 from 527th in 2011 in Turkish Exporters Council’s “First 1000 Exporter Firms”.
The Company took the first ranking in “R&D 250 Research” in 2012 which is prepared by Turkish Time on the basis of
annual R&D expenditures where it was 4th in 2011.
The Company became the second in “2013 Defense Industry Awards”, organized by Undersecretary of Defense
Industry, based on the financial and performance results.
The company is 37th in 2012, Brand-Finance “published by the Turkey’s Most Valuable Brands - 100 Company” list.
In addition, Company has achieved to take a place in “Turkey 159 Super Brand” ranking published by British-based
brand assessment firm Superbrands. The Company took the first ranking in “Electronic Machinery and Technology
Sectors-2012 Most Successful Exporters- Other Durable Consumption Goods Category” which is organized by İstanbul
Electronic Machinery and Technology Exporters Association.
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The Company is 11th in the research of Bloomberg Businessweek Turkey and Realta Consultancy amongst 96
Universities: “Most Anticipated 50 Companies.
The Company took the 3rd ranking in “Engineering and Information Technologies” branch of the analysis of Universum
research company “Turkey’s Ideal Employees: 2013” prepared among 7.835 university students for the first 100
companies.
17. Progress in investments and degree of incentive utilization if any
Progress in Investments
Directing the Company resources to profitable fields with high added value where advanced technology is used is
anticipated in the first place by considering the global tendencies, technological developments and the actual and
prospective requirements of all customers in particular the Turkish Armed Forces. The investments in the Company
are realized by considering the technological plans, strategic plans and project requirements. Below are the leading
investments in scope of these:
•A new facility investment is being made in the field of Radar and Electronic Warfare in Ankara province, Gölbaşı
district. The construction works continue pursuant to the project plan and the activities are planned to be initiated in
the second half of the year 2014. Upon the realization of this investment in scope of a structural growth, the product
range of engineering, production, test and logistics support services in the field of Radar and Electronic Warfare shall
be extended.
•Investments to meet the infrastructure and equipment requirements to be used with the R&D projects within the year
are being carried out in compliance with the investment plan prepared pursuant to the efficient resource utilization
principle.
•A land investment was made in Temelli organized industrial site in order to facilitate our production operations in
progress.
Degree of incentive utilization if any
The 1501 Industrial R&D Projects Support Programme has been formed in order to encourage the R&D operations of
the companies creating added values at company level and to contribute to the enhancement of the R&D ability of the
Turkish industry by this means. Within this scope, applications were filed to The Scientific and Technological Research
Council of Turkey (TÜBİTAK) for 95 projects and 84 of the projects found appropriate for the incentive benefited from the
allocated incentive amount.
5 new projects within the scope of 1511-Prioritized fields research Technologies development and innovation program
were signed in 2013 and started being executed.
The 1007 Public Institutions R&D Project Support Program has been formed in order to meet the requirements of the
Public Institutions with R&D or to support the projects aimed at solving their problems. In scope of this support, 5 R&D
projects have been completed and 4 R&D projects are still ongoing.
Within the scope of the European Commission 7th Cooperation Framework Programs, 2 integration projects were
executed and went into effect in 2011 and 1 project which was initiated in 2008 was completed in June 2012 with
success. In the “Circulation of the Researchers, Return Grants; Individual Support Private Programme” within the
scope of the European Commission 7th Cooperation Framework Programmes, incentive applications for 4 projects were
accepted and implied in the years 2010 and 2011. The support process of the 3 projects have been initiated as of July
2010 by EUREKA-International Industrial R&D Projects Support Program where market oriented projects for developing
products and processes to be commercialized in short term are supported. Within the financial support mechanism
for the European Commission nominee and potential nominee countries, namely IPA - Instrument for Pre-accession
Assistance, 1 out of 2 border security projects was executed at the end of 2010 and the other was executed in March
2012 and came into effect.
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22 projects were executed in the year 2011, 2012, 2013 and came into effect within the SAN-TEZ R&D support
programme aimed at supporting the postgraduate and/or doctorate thesis works which shall contribute to increasing
the competitiveness in international markets by means of commercializing the scientific studies at the universities and
institutionalizing the University - Industry cooperation.
Expenses regarding the foreign market research travels realized with respect to the products and the foreign office
expenses are used up by the rate and amount of subsidies implemented within the scope of Governmental Grants for
Export.
Within the Decision Regarding the Governmental Grant in Investments, there are 4 Investment Incentive Certificates
taken from the Turkish Republic Prime Ministry Undersecretariat for Treasury General Directorate of Incentives and
Implementation. With such incentive certificates, VAT exemption and customs tax exclusion are utilized. VAT exemption
is applied in domestic and foreign purchases and customs tax exemption is used in foreign purchases.
Income tax withholding incentive, insurance premium support, stamp tax exemption and R&D discount are utilized
within the scope of the Law numbered 5746. Income tax withholding incentive, insurance premium support and stamp
tax exemption is utilized by being calculated over the salaries of the R&D personnel and not being paid to the relevant
institution and the R&D discount is utilized by means of applying a discount on the corporate tax return.
Within the scope of the Teknokent Law numbered 4691, incentive on witholding income tax, insurance premium
support and stamptax exception is applied. These are utilized by making calculations on R&D and software personnel
wages and not being paid to the related institution. The gain obtained with reference to the execution of Technology
Development Zones Law numbered 4691 is exempted from the corporate tax of 31 December 2013.
18. Comments including the qualities of the production units of the company along with the capacity utilization rates and
their developments, general capacity utilization rate, developments in the manufacturing of the products and services
which are subjects of activity, amounts, quality, circulation and the prices compared with the previous period figures
The capacity utilization for the period between 1 January- 31 December 2013 was realized at the level of 97%.
Substantial part of the production is realized as order based production. R&D activities are carried out for the products
designed to be tailored for the customer requirements and the qualities of the system and products alone with their
quantities and prices may be subject to change. Upon the usage of Enterprise Resource Planning (ERP) system, the
production processes have been managed more efficiently.
19. The prices, sales revenues, sales conditions of the products and services which are subjects of activity with their
improvements within the year, developments in the yield and productivity parameters and the reasons of the substantial
changes in these compared to the previous years
The Company carries out its operations in the basic fields of: “Communication and Information Technologies”, “Defense
System Technologies”, “Radar, Electronic Warfare and Intelligence Systems” and “Microelectronics Guidance and
Electro-Optics.”
The Company’s project revenues comprise, according to the relevant sales agreement terms and conditions, order
based production, mass production product sales, services, commodities and progress billing sales. Sales terms and
conditions are subject to change as for the respective agreements.
As for the consolidated amount of the Group realized during the period 1 January-31 December 2013 TL 1.773 Million of
this realized as the domestic sales and TL 398 Million as it realized as the foreign sales.
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20. The basic ratios regarding profitability and liabilities, as calculated on the basis of the financial statements, sales,
efficiency, income generation capacity, profitability and liabilities/equity ratios in comparative basis with prior period and
information about other matters and future expectations and risks that has been prepared in accordance with Capital
Markets Board Communiqué Series:II and No:14.1
BASIC RATIOS / CONSOLIDATED BALANCE SHEET
Current Ratio (Current Assets/Current Liabilities)
Liquidity Ratio (Cash and Cash Equivalents+Financial Investments+Trade
Receivables+Other Receivables /Current Liabilities)
Equity /Total Liabilities
Current Liabilities/Total Liabilities
Non-Current Liabilities/Total Liabilities
31 December 2013
2,19
31 December 2012
2,50
1,01
0,40
0,23
0,36
1,18
0,38
0,23
0,39
BASIC RATIOS / CONSOLIDATED PROFIT TABLE
Operating Profit/ Revenue
Profit for the Period (Parent Company Shares) / Revenue
31 December 2013
0,26
0,11
31 December 2012
0,24
0,19
As of 31 December 2013, based on Group’s financial statements prepared in accordance with the Communiqué Series
II, No:14.1 “Communiqué on Capital Market Financial Reporting Standards” issued by Capital Market Board, the net
sales amount has increased 33% compared to the same period of prior year. The profit for period amounts to TL 238,5
Million, with a decrease of 22%. Equity has increased by 27% compared to December 2012. The liabilities of the
Group are mainly consist of the short and long term order advances received. The Group’s liquidity ratio is above the
acceptable levels.
21. Measures planned to be taken to improve the financial structure of the Company
The Group and the Company, as for their annual budgets and implementations for the period 2012 - 2014, have adopted
the principles as the basis to take care of savings in all kinds expenditures, to closely follow up the advances and
receivables, to pay attention to the proportion of the term and currency in purchasing and sales agreements with the risk
status of the domestic/foreign sellers.
USD 40 Million portion of the credit line allocated to the Company with the decision of Defense Industry Executive
Committee in order to finance the Gölbaşı investment was used in the third quarter of 2011 while USD 25 Million of the
second portion amounting to USD 47 Million was used in March 2013 and USD 22 Million is planned to be used in 2014.
22. Changes in the top management within the period and the names and surnames of the ones who are on duty
Changes in the top management within the period 1 January-31 December 2013 and information regarding the ones on
duty are given in the below table:
LIST OF UPPER MANAGEMENT IN SERVICE
No Name Surname
Duty
1
Necmettin BAYKUL
Chairman/Managing Member
2
Erhan AKPORAY
Vice Chairman / Managing Member
3
Member of the Board of Directors
4
Lamia Zeynep ONAY
5
Halil SARIASLAN
6
Hasan CANPOLAT
7
Orhan AYDIN
8
9
Murat ÜÇÜNCÜ
10
Cengiz ERGENEMAN
CEO/President
11
Ahmet DEMİR
CFO/Vice President
12
Özcan KAHRAMANGİL
Division CEO/Vice President
13
Faik EKEN
14
Fuat AKÇAYÖZ
15
Ergun BORA
Date of Appointment
29 March 2013
31 March 2011
29 March 2013
29 March 2013
29 March 2013
16 May 2013
16 May 2013
16 May 2013
16 May 2013
02 January 2006
01 February 2005
05 January 2006
21 January 2006
01 February 2006
01 January 2008
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23. Total amounts of the financial benefits such as attendance fee, remuneration, premium, bonus payments, share profit
provided to the managing members and senior executives
The total amount of the remuneration and similar benefits paid to the senior executives by the Company as for the period
31 December 2013 is TL 4.555.169 (31 December 2012: TL 4.356.770). A monthly payment of net TL 2.200 is made to
the Member of the Board of Directors and Managing Members.
24. Information regarding the allowances granted to the managing members and the senior executives with the travel,
accommodation and representation expenses and financial benefits in kind, insurances and total amounts of the similar
guarantees
Information regarding the domestic and foreign allowances, travel, accommodation and representation expenses and
financial benefits in kind and total amounts of insurances granted to the senior executives and members of the board of
directors of the Company for the year 2012 and 2013 are summarized as follows:
Travel and Entertainment Expenses
Travel Expenses
Entertainment Expenses
TOTAL
January-December 2013 (TL)
Members of the
Senior
Board of Directors
Executives
65.655
330.015
13.554
65.655
343.569
Members of the
Senior
Board of Directors
Executives
24.634
280.913
1.663
24.634
282.576
Health Insurance Expenses
Senior Executives-Members of the Board of Directors
Senior Executives
TOTAL
959
11.088
12.047
1.284
11.648 (*)
12.932
The expenses of 2012 included the annual health insurance payments made for the audit committee members. However, the aforomentioned health insurance expenses
exist only for the first three months of 2013, since the audit committee members services have ended as of the regular General Assembly held on 29 March 2013.
(*)
25. Personnel and workers turnover, collective agreement implementations, rights and benefits provided to the personnel
and workers
The Group recruited a total number of 333 people (119 personnel with fixed term contract) as the personnel including
fixed-term contracted personnel, disabled and terror-stricken personnel during the period 1 January - 31 December
2013 and the number of people quit for the same period is 200 (28 personnel with fixed-term contracted).
The rights and benefits provided to the personnel by the Company are bonus payments, meal allowances, marriage
benefits, maternity benefits, death allowances, transportation, private health insurance, childcare and kindergarten
benefits.
The average number of personnel employed by the Group as of 31 December 2013 is 5.343 (The average number of
personnel employed by the Group as of 31 December 2012: 5.088).
There is no collective bargaining agreement in the Company.
26. Information regarding the donations realized within the year and social responsibility
There is no donation made by the Group between the period 1 January- 31 December 2013.
In May 2013, Republic of Turkey Ministry of Health, Public Health Agency of Turkey Institution had given the Company
a plaquet named “Baby Friendly Workplace” because of fulfilling the criteria for the promotion of breastfeeding. In
addition, a tree has been planted for each personnel recruited since the beginning of 2013 and it is planned to continue.
27. The Existence of Organizations outside the Center
•Branch in Republic of South Africa; Pretoria
•Office in United Arab Emirates; Abu Dhabi
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28. Information regarding the shares of the companies subject to consolidation in the parent company
There is no cross ownership relation between the companies subject to consolidation (MİKES and AselsanNet) and the
Company.
29. As for the preparation process of the consolidated financial statements; comments with respect to the principal factors
of the internal audit, internal control and risk management systems of the Group and opinion of the managing body
The controls are carried out by the Internal Audit and Assessment Board (IAAB), Audit Committee and members of the
Board of Auditors within the parent company in order to minimize the substantial error risk on the financial statements
of the Group. IAAB and Audit Committee carry out their duties independent from each other but within the direction of
common objectives and targets by subject to maintain an internal control system which provides required controls in
matters such as the reliability of the financial reporting system, the efficiency of the activities in order to eliminate the
operational risks and compliance with the law. Furthermore, the efficiency and sufficiency of the internal control are
supported with the directives in effect.
In order to determine the potential risks which may affect the Company and to govern them, the Committee for Early
Determination and Management of Risks operates. The committee meets on a periodical basis and reports in every two
months to the Board of Directors. The report is also shared with the independent audit firm.
30. Direct and indirect affiliates of the Company and information regarding the share ratios
Aselsan is the 96,37% owner of the Mikes and 100% owner of the AselsanNet and these companies are consolidated in
financial tables.
The affiliated partnerships, subsidiaries subject to joint management and affiliates of the Group recorded as financial
investments with their participation ratios and amounts are as follows:
Company Name
Aselsan Baku
Roketsan A.Ş.
Mikroelektronik Ar-Ge Tasarım ve Ticaret Ltd. Şti.
Aspilsan A.Ş.
Havaalanı İşletme ve Havacılık End. A.Ş.
Kazakhstan Aselsan Engineering LLP
IGG Aselsan Integrated Systems LLC
Aselsan Middle East PSC LTD
TOTAL
Share (%)
100
14,897
85
1
0,051
49
49
49
31 December 2013 (TL)
3.059.234
5.141.213
624.714
147.462
86.953
388.023
42.837
3.233.774
12.724.210
The above mentioned investments of the shares valuing TL 12.724.210 are ready to be sold and which do not have
quoted market value and of which the realistic value cannot be reliably estimated due to the reason that the estimated
value ranges are wide and that the probabilities related to the estimated values cannot be measured reliably and which
are not traded in the stock exchange.
31. Information regarding the Company’s own shares acquired by itself
No such event has occurred within the activity period.
32. Comments with respect to the private audit and governmental audit realized within the activity period
“Risk Analysis Investigations” for the year 2010 was performed by tax inspection board of Finance Ministry and “Import
and Export Transactions” investigation for the period between 2011-2013 was performed by Ministry of Customs and
Trade in Company’s affiliate Mikes.
No private or governmental audit was realized at Aselsan and AselsanNet.
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33. Information regarding the lawsuits filed against the Company which would have an impact on the financial status and
activities of the Group and their probable outcomes
The lawsuits and execution proceedings filed by or against the Group as of 31 December 2013 are summarized below:
a)
b)
c)
d)
e)
Description
Ongoing lawsuits filed by the Group
Execution proceedings carried on by the Group
All types of ongoing lawsuits filed against the Group
Lawsuits finalized in favor of the Group within the period
Lawsuits finalized against the Group within the period
31 December 2013 (TL)
3.757.739
5.048.050
445.573
1.019.456
430.231
34. Comments with respect to the administrative and judicial sanctions applied to the Company and the managing
members due to the acts contrary to the legislation provisions
No penalties with substantial amounts were paid by the Group within the activity period.
35. If it is an affiliate company, the legal transactions carried out in favor of the parent company or its affiliate with the
parent company, with an affiliate company connected to the parent company with the direction of the parent company and
all other measures taken or avoided to be taken in favor of the parent company or its affiliate in the previous activity year
No such event occurred within the period.
36. If it is an affiliate company, whether any counter performance was realized for each legal transaction according to
the known status and conditions at the time the legal transaction mentioned in article 33 was realized or at the time the
measures were taken or avoided to be taken and whether the company incurred losses due to the taken or avoided
measure and if the company incurred losses to observe whether this was equalized or not
No such event occurred within the activity period.
37. The determination and management assessment with respect to the Company’s unpaid capital or whether the
Company is deeply in debt
38. The status of owning directly or indirectly five, ten, twenty, twenty five, thirty three, fifty, sixty seven or one hundred
percent of the shares representing the capital of an equity company or in the event that the proportions go below these
percentages and ground for this
39. Related Party Transactions
Detailed table is disclosed in Note 4 under Consolidated Financial Statements of 31 December 2013.
ANNEX-1 Corporate Governance Principles Compliance Report
1. STATEMENT FOR COMPLIANCE WITH CORPORATE GOVERNANCE PRINCIPLES
ASELSAN, in scope of the Corporate Governance Principles which has been implemented by Capital Markets Board
(CMB) since 2003, has been making efforts to work in compliance with the principles under the titles shareholders,
public disclosure and transparency, stakeholders and Board of Directors.
ASELSAN, adopting the corporate governance understanding as a principle, was rated with a grade of 87,73 (8,77)
as the result of the Corporate Rating Studies realized by SAHA Corporate Governance and Credit Rating Services Inc
(SAHA) in 2012 and therefore was included in the Borsa Istanbul Corporate Governance Index. As a result of the efforts
carried out through 2013 in order to improve the compliance with corporate governance principles to the maximum level;
according to the report of SAHA which was published on 13.12.2013, ASELSAN’s corporate governance rating grade
was updated to 9,07 out of 10 points.
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Corporate governance rating grade shows to what extent the companies comply with the corporate governance
principles set out by the CMB and the Company’s compliance level with the principles is defined with a methodology
measuring under the main titles Shareholders, Public Disclosure and Transparency, Stakeholders and Board of
Directors.
ASELSAN, being considered as a relatively
closed Company by the capital market
participants due to the defense sector which
it is active in, increased its grade on Public
Disclosure and Transparency to 99,19, which
was 93,47 in 2012. The importance given to
provide timely and accurate information to the
investors and stakeholders by ASELSAN with
respect to transparency and public disclosure
shall continue as it is.
Main Titles
Score (%)
Weight
Shareholders
0,25
80,90
Public Disclosure and Transparency
0,25
99,19
Stakeholders
0,15
94,85
Board of Directors
0,35
89,87
Total
1,00
90,71
Company Score
9,07
ASELSAN Corporate Governance Ranking Report published by SAHA
can be accessed at the company website: www.aselsan.com
SAHA, has revised the 2013 corporate governance ratings of all its customers on 03.03.2014, regarding the resolution
of Capital Market Board’s meeting numbered 4/105 held on 01.02.2014. Our company’s corporate governance rating
grades announced on 13.12.2013 have been updated for every subtitle within the context of the CMB’s regulations
without making any change for the weights used in scoring.
As per the new methodology, in case the company fulfills all the compulsory requirements of a principle, the maximum
rate it can achieve shall be 85 over 100, and according to the additional good corporate governance practices
regarding the related principles, the rate shall be converged to the maximum rating, 100. Within this context, ASELSAN’s
corporate governance rating grades are updated as given below.
Main Titles
Shareholders
Public Disclosure And Transparency
Stakeholders
Board of Directors
Total
Company Score
Weight
0,25
0,25
0,15
0,35
1,00
Score (%)
82,70
85,30
94,80
84,34
85,74
8,57
The compliance with all the compulsory principles of Corporate Governance Principles was achieved. The titles
regarding the arbitrary principles where compliance has not been achieved yet are given below and are explained in
detail through the Compliance Report.
•Non-existence of a judgment in the Articles of Association; declaring that shareholders may individually demand
the investigation of certain incidents from the General Assembly even if it is not on the meeting agenda, under
the condition that the right to ask for information and investigation has been used before and if the appliance of
shareholders rights is necessary,
•Non-existence of an article in the Articles of Association regarding the General Assembly meetings to be held as open
to public including media and shareholders without the right to speak,
•No recognition of minority rights to those who own less than twentieth of the capital indicated in the Articles of
Association,
•Non-existence of models supporting the participation of stakeholders, mainly the company personnel to the
management of the company without interfering with the company’s operations.
Corporate Governance Committee will carry on the necessary efforts in order to achieve full compliance with Corporate
Governance Principles.
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Erhan AKPORAY
Independent Member of Board of Directors
Corporate Governance Committee Chairman
Vice Chairman of Board of Directors
Member of Corporate Governance Committee
Hasan CANPOLAT
Orhan AYDIN
Member of Board of Directors
Murat ÜÇÜNCÜ
PART I -SHAREHOLDERS
2. Relations with Shareholders Department
The information regarding Investor Relations and Subsidiaries Department responsible for the relations with shareholders
is given below.
Ahmet DEMİR
Aykan ÜRETEN
Pınar ÇELEBİ
Bâni Betül GÖKÇE
Başak YÜCEKAYALI
Chief Financial Officer / Vice President
Finance Director
Manager of Investor Relations and Subsidiaries Department
Investor Relations and Subsidiaries Department/Senior Expert
Investor Relations and Subsidiaries Department/Expert
Contact information
Phone: (312) 592 12 33 - 42 - 45 - 70
e-mail: [email protected]
Main operations carried out by Investor Relations Department during 2013 are as follows:
•Maintenance of exercise of partnership rights of shareholders, updated and safe records regarding shareholders,
•Coordination of public disclosure of material events,
•Answering the written inquiries of shareholders regarding the company excluding the information considered as
private and trade secret not disclosed to public,
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•Ensurance of execution of General Assembly meeting in compliance with the regulation in force, Articles of
Association and other company regulations, records being kept regarding the ballots and the results being reported to
shareholders,
•Monitoring of every issue regarding the public disclosure including the regulations and company policies on
information,
•Execution of tasks assigned by Corporate Governance Board,
•Operation of transactions regarding capital increase, profit distribution, amendments on Articles of Association and
works of Corporate Governance Principles,
•Coordination of updating the list of people who have access to insider information; informing those people in purpose
of protecting the insider information and obeying the privacy rules until financial and operational results are disclosed
to public,
•Coordination of preparation and publishment of Sustainability Report.
The information and explanations which may affect the exercise of shareholders rights are provided in the company
website.
3. Exercising of Information Acquisition Rights of the Shareholders
Investor Relations Department has taken care of every written and verbal inquiry of all shareholders, particularly of
Turkish Armed Forces Foundation, in 2013 with most accurate and fastest way. It is paid attention to respond to all the
information demands of shareholders with complete and comprehensible responses.
Investor Relations Department has been using the English website www.aselsan.com and Turkish website www.aselsan.
com.tr actively in order to inform the ASELSAN’s investors on a timely and accurate basis and has been updating the
information given on the web constantly. Full compliance of both Turkish and English chapters on “Investor Relations” on
the website with the regulations was achieved.
Within the context of regulations of Capital Market Board, in 2013;
•General Assembly documents were published on the website in Turkish and English within legal deadlines,
•General Assembly minutes and participants list were published on the website in Turkish and English,
•2012 Annual Report was uploaded to the website in Turkish and English.
•The investor presentations which are updated every 3 months were published on the website in Turkish and English,
•Disclosures of material events made in 2013 were published on the website in Turkish and English and the
announcements began to be published on the website in Turkish and English simultaneously after March 2013,
•“Analyst Coverage” page was updated,
•Corrections were made on “Capital Increases” page,
•The missing content in “Dividend Info” page was completed,
•“Compensation Policy” was added to “Policies” page,
•“Investor Presentations” page was published,
•ASELSAN Sustainability Report was published on the website in Turkish and English.
Due to the reason that a regulation is present within the Turkish Code of Commerce (TCC) numbered 6102 according
to which the shareholders will be able to request from the General Assembly the assignment of a private auditor for the
inspection and disclosure of the financial status of the shareholders and due to the reason that the law and the relevant
legislation are considered for the issues not present in the Articles of Association of the Company, there is no respective
provision with regard to this issue in the Articles of Association. There was no request of any shareholders with respect
to the assignment of a private auditor in 2013.
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4. General Assembly Meetings
The agenda and invitation related to the 38th Ordinary General Assembly Meeting dated 29.03.2012 with regard to
2012 operations realized at the Company headquarters were duly announced comprising all the necessary information
in the Turkish Trade Registry Gazette dated 07.03.2013 along with five daily newspapers in Turkey. Furthermore the
invitation was sent to the main shareholders and the shareholders attended to the previous meeting by post two weeks
before the General Assembly. The General Assembly was held with the attendance of 106 shareholders, 19 physically,
87 electronically representing 45.015.835.266 shares (450.158.352,66 nominal) of 50.000.000.000 total shares. Media
members did not participate in the General Assembly Meeting which was held for the first time simultaneously both
physically and electronically.
In scope of the Communiqué related to the Determination and Implementation of the Corporate Governance Principles
of the CMB, Serial: IV, No:56, three weeks before the Ordinary General Assembly on date 07.03.2013, the Ordinary
General Assembly Meeting agenda, place, time, copy of the power of attorney, total number of shares as of 07.03.2013
and the voting rights, the number of shares representing the privileged shares and their voting rights, the reasons for
the changes by the election of the members of Board of Directors, which is present in the agenda, the decision of the
Board of Directors related to the amendment to the Articles of Association, the old and new versions of the Articles of
Association with the approvals of the CMB and the Ministry of Customs and Trade, the list of independent members of
the Board of Directors, the proposal of the Board of Directors with respect to the 2012 year profit distribution, the CV’s
of the independent members of the Board of Directors and their statements of independence were published on our
Company website. The annual report was made available for the review of the shareholders at the headquarters 15 days
before the General Assembly and handed to the shareholders to participate in the General Assembly and to the ones
who made requests.
For the facilitation of physical attendance to General Assembly Meeting in 2013, transportation from central spots to our
Company head office was provided for our shareholders, and our shareholders who attended the General Assembly had
a site visit.
In the Ordinary General Assembly Meeting in 2013, the shareholders were informed regarding the presence of
managing members, all the Board of Directors members and auditors at the meeting. No proposals were set forth by
the shareholders during the meeting regarding the agenda. The shareholders exercised their rights to ask questions
regarding the topics in the agenda and the answers to the questions took place in the General Assembly Meeting
minutes. The minutes of the General Assembly Meeting held in 2013 can be reached from the website of the Company.
In connection with article 1.3.7 of the Communiqué No:56 Serial: IV, a topic was added to the agenda of the Ordinary
General Assembly in 2013 and in this scope information was provided to the Board of Directors stating that there was
no authorization granted to the ruling shareholders with regard to the Company Management, Members of the Board of
Directors, senior executives and to their spouses and relatives up to second degree and kins by marriage for them to
perform acts which would cause conflict of interest with the Company or its subsidiaries, or to compete.
No Extraordinary General Assembly Meeting was held during the year 2013.
The shareholders were informed regarding the amount of donations and aids made in 2012 and the beneficiaries with a
separate agenda item. The policy regarding the donations and aids formed in 2013 was submitted to the shareholders
in the general assembly meeting in the agenda; a decision was made regarding the upper limit of donations and aids
to be made in 2013 and the donation and aid limit was designated as 5 of thousandth (TL 146.000) of net income of
consolidated financial statements prepared according to CMB regulations to be valid until general assembly meeting of
the Company and group companies that will be held in 2014.
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5. Right to Vote and Minority Rights
In article 25 of the Articles of Association titled “Right to Vote”, there is a provision stating that “the Shareholders and
their representatives who are present at the Ordinary and Extraordinary General Assemblies shall have one right to vote
for each share” and there is no privilege or no upper limit pertaining to the numbers of votes. The right to vote arises
as soon as the share is acquired and there is no regulation setting forth that the vote shall be used when a certain time
passes after the acquisition date of the share.
The regulations regarding the voting of the shareholders through their representatives are followed by; in the event of a
legal representation, it is certified and the open proxy rule is applied. In the General Assembly in 2013, the amendment
to the Articles of Association regarding the Electronic General Assembly was approved.
Particular attention is paid in exercising the minority rights in our Company and the provisions of Turkish Code of
Commerce and the relevant legislation regarding minority rights are applied as is. All shareholders are treated equally in
our Company, including the minority and foreign shareholders.
There are no prevailing partners in our Company. In the Articles of Association, there is no provision with respect to the
representation of the minority shares in the management and their accumulated casting of votes. Due to the voluntary
implementation of this issue regarding the capital market legislation, provision with respect to the current General
Assembly quorum is applied.
6. Dividend Rights
There is no privilege with respect to the participation in the profit gained by the Company. The profit distribution policy
was revised in 2013 and was submitted to General Assembly meeting. The profit distribution policy published on our
website is given below.
“The dividend amounts which shall be calculated considering the sustainable growth rate, market values and cash
flows, the company equity, with the relevant legislation and the provisions of the articles of association over the
distributable profit amount calculated taking the period profit as the basis which is shown on the financial statements
of our Company prepared pursuant to the existing legal regulations (after the compulsory legal reserves are reserved
and the taxes, funds and financial liabilities and losses of the previous year, if any, are deducted and the donations are
added), The profit distribution proposal which shall be prepared by the Board of Directors in order for the shares which
shall be issued by means of adding the cash or the dividend on the capital on the date(s) determined pursuant to the
regulations of the Capital Markets Board to be distributed in cash in the defined amounts or as bonus shares or bonus
shares in defined amounts, shall be submitted to the approval of the General Assembly. Following the approval of the
General Assembly, the determined profit share distribution amounts are distributed to the shareholders within the legal
periods on the date determined by the General Assembly.
There is no privilege to participate to the profit of our Company. The profit shares are distributed equally regardless of all
the existing shares and their issue and acquiring dates.”
As per the decision taken in the General Assembly pursuant to the provisions of the Articles of Association and to
the Capital Market Law and other legal regulations in 2013 and within the legal periods, out of the profit gained from
2012 operations, the gross amount of TL 78.500.000 (TL 0,157 per TL 1 of share, gross 15,7% over the capital) (net TL
66.725.000- TL 0,13345 per TL 1 of share, net 13,345% over the capital) was distributed to our shareholders as cash
dividend.
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7. Transfer of Shares
The transfer of the nominated Group A shares representing majority part of the capital and which are not traded in Borsa
Istanbul has been restricted with the provision of article 6 of the Articles of Association stating “Group A shares shall
not be sold or transferred without the consent of the Board of Directors; in the event that these shares are transferred
or sold to third parties partially or completely without the consent of the Board of Directors, the Board of Directors is
entitled to abstain from recording this sale in the records without stating a reason”. However, in 2013, the amendment of
the related Article 6th in the following respect “Group A shares shall not be sold or transferred without the consent of the
Board of Directors because of the Company’s operations in security and defence industry; in the event that these shares
are transferred or sold to third parties partially or completely without the consent of the Board of Directors, the Board of
Directors is entitled to abstain from recording this sale in the records” will be submitted to the shareholders’ approval in
General Assembly meeting for which the permissions were attained from Capital Markets Board and Ministry of Customs
and Trade.
PART II - PUBLIC DISCLOSURE AND TRANSPARENCY
8. Disclosure Policy
The Disclosure Policy of our company was revised in accordance with the Communiqué on Material Events numbered
II-15.1 and will be submitted to the shareholders’ information in the General Assembly meeting in 2014. The Disclosure
Policy of our company is published in the Annual Report of 2013.
In our Disclosure Policy;
•Carrying the relations with capital market participators and following the capital market regulations,
•Exercise of shareholders’ right and meeting the information demands of investors and shareholders,
•Regulations related to General Assembly Meetings,
•Information flow including the website
and the coordination of related matters are indicated.
Board of Directors is responsible from forming the Disclosure Policy, its follow-up, evaluation and development.
Corporate Governance Committee informs and proposes to Board of Directors on issues regarding Disclosure Policy.
Any question or explanation can be made regarding ASELSAN by:
•Chairman and Members of Board of Directors
•CEO
•Vice CEO
either verbally or in written form. Personnel other than indicated here are not authorized to answer any written or verbal
inquiry demand received from capital market participators. Received information demands are forwarded to Investors
Relations and Subsidiaries Department.
The information to be disclosed to the public is submitted in a timely, accurate, complete, comprehensible and
interpretable manner, easily accessible with low costs and equally and in a manner to support the beneficiaries to make
decisions.
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Investor Relations Department personnel have been assigned to pursue and monitor all kinds of issues related to
public disclosure. Capital market participators such as investors and financial analysts are directed to this department.
Meetings with the capital markets participants are seen as a significant part of developing investor relations for our
Company. However, no new information is provided in these meetings but only already disclosed information is updated
and ASELSAN does not disclose any insider information which shall affect the value of ASELSAN shares and the
decision of the investors and which have not yet been disclosed to the public. The reports and presentations shared with
a certain group of investors are also published on the website along with a material event disclosure. In compliance with
the transparency principle, accounting policies and activity results are also disclosed to the public in a realistic manner.
Pursuant to the CMB regulations, 43 material event disclosures were made within 2013 via Public Disclosure Platform.
These are made available on our website as well. There were no additional explanation requests by the CMB or by
Borsa Istanbul within the year.
During 2014, the disclosures regarding financial statements -except notes- will be declared in English simultaneously
with the Turkish version in Public Disclosure Platform. Explanations in English will be prepared in summary in
accordance with the Turkish explanation in a precise, direct and comprehensible manner.
Pursuant to the Disclosure Policy of our Company, prospective expectations are also disclosed to the public. Within this
context, our expectations for the 2013 consolidated financial results were disclosed on 05.03.2013 and the management
evaluation regarding the realization of our expectations are included in article 9 of the Board of Directors Annual Report.
Disclosure of the “People who have Access to Insider Information” to the Public
The list of people who have access to insider information which has been prepared in accordance with CMB regulations
since 2004 was reviewed in accordance with the Communiqué on Material Events dated 23.01.2014 numbered II-15.1
and it has been followed by being loaded to the system of Central Registry Agency.
9. Company Website and its Content
In order to inform our shareholders in a timely and accurate manner within the context of public disclosure and
transparency; the website of the Company at the address www.aselsan.com.tr in Turkish and www.aselsan.com in
English is actively used and the information published on the web are updated regularly. In 2013, full compliance
acquired to related regulations and judgments under “Investor Relations” section in both the Turkish and English
versions of our Company’s website.
The section “Investor Relations” is included on our website also comprising the issues listed in article 2.2 of the
Communiqué Regarding Determination and Implementation of Corporate Governance Principles issued by the CMB,
Serial: IV, No: 56 which also includes the judgments noted in 2.1.1. numbered governance principle of Corporate
Governance Communiqué numbered II-17.1 issued on 03.01.2014.
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Under “Investor Relations” section;
1. Corporate Governance
1.1 Shareholder Structure
1.2 Board of Directors
1.3 Board Committees
1.4 Articles of Association
1.5 Company Profile
1.6 Policies
1.7 Ethical Principles
1.8 General Assembly Meeting
1.9 Compliance with Corporate Governance Principles
1.10 Corporate Governance Rating
2. Stock Info
2.1 Stock ID
2.2 Non-Deposit Shares
2.3 Capital Increases
2.4 Dividend Info
2.5 Analyst Coverage
2.6 Registration Statement and Public Offering Circular
3. Annual Reports
4. Financial Data
4.1 Financial Reports
4.2 Financial Highlights
4.3 Investor Presentations
5. BIST Disclosures
6. Frequently Asked Questions
7. Contact
chapters exist. Necessary records and information are included under these titles. The information given on the Turkish
website under “Investor Relations” section is included entirely on the English website.
10. Annual Report
The Board of Directors prepare the annual report in detail regarding the Company activities and which enable the public
to reach complete and accurate information that can be comprehensive. The 2013 annual report of our Company was
prepared as per the Turkish Code of Commerce numbered 6102, the Regulation Regarding the Determination of the
Minimum Content of the Annual Reports of Companies issued by the Ministry of Customs and Trade, the Communiqué
Regarding the Principles Related to Financial Reporting in the Capital Market and the Communiqué Regarding the
Determination and Implementation of the Corporate Governance Principles, both issued by the Capital Markets Board.
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PART III - STAKEHOLDERS
11. Informing the Stakeholders
The information requests of stakeholders are keenly handled and attention is paid in responding these accurately and
in an understandable manner. Our employees are informed with a personnel hand book and informing presentations
over the intranet. As for our suppliers, strategic cooperation and certified suppliers policy is followed and our suppliers
are informed via internet or e-platforms and face to face meetings are held through visits. The studies are being
carried on in order to establish “ASELSAN Suppliers Portal” in order to enrich the content, efficiency and quality of our
communication with the suppliers. While web-based electronic purchase platform is already used in the internet, the
platform will be upgraded to a more comprehensive content. In the suppliers’ portal, it is targeted for the suppliers to
reach and govern the information regarding them.
Our Company’s main principle is the continuous development, improvement and verification of processes, services
and products and to provide its customers with services and products without any defects in order to meet all their
requirements. For this purpose, a quality system has been established where the Quality Handbook, directives, quality
plans, standards, audit and test directives are documented, exercised and constantly improved.
Our core principle related to customer satisfaction is to deliver products/services meeting the expectations and
requirements of the customers. For this purpose, requirements are defined in an accurate and complete manner and
products tailored for these requirements are designed and produced and the logistics support is provided accordingly.
Customer satisfaction evaluations are open to access of every director within the context of Management Reports and
the results and tendencies of customers are evaluated on a yearly basis by the upper management.
Our products are designed and produced in accordance with the military, civil and international standards. Starting with
the design phase, these quality standards are fulfilled throughout the life-cycle of our high-end technology products
and strict tests and controls are applied in every stage of production starting at the material procurement stage in order
to guarantee that all products are produced in the same quality. Our products and services have been certified by
internationally accepted standards such as AS9100, ISO 9001, AQAP and CMMI. The conformity of our products and
services are approved every year with the audits performed.
To minimize quality problems, the suppliers are subject to commercial, technical and qualitative evaluations in order to
assure that, materials and software or related services are supplied from reliable suppliers. The result of the evaluation is
submitted to the suppliers and qualified ones are chosen to work with. Within this context, in 2013 orders, half of which
were domestic orders, were given to 3.700 suppliers.
The quotations of the suppliers and the written communications are deemed confidential and not disclosed to third
parties or unauthorized people. With the directives formed, provision and implementation of unfair benefit with respect to
the relations between the customers and the suppliers have been prevented.
ASELSAN Magazine published every 4 months provides information regarding the activities, technical issues and up-todate social events. Hardcopies of ASELSAN Magazine is delivered to the end users of ASELSAN products, shareholders
who participated to the General Assembly Meeting, company employees and other related parties and uploaded to the
website right after it is published.
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The Compensation Policy can be accessed from our company’s website under Corporate Governance title.
The members of the Board of Directors and the executives do not perform any activities that may cause shareholders to
incur losses or may diminish the Company assets.
It is resolved that the actions to be taken with regard to the article of Corporate Governance Principles “The company
builds the necessary mechanisms through which the stakeholders may inform the corporate governance committee or
audit committee about the transactions of the company which are in contradiction with the related regulation and are
ethically inappropriate.” shall be coordinated by the Audit Committee and the studies regarding this issue are carried on.
12. Participation of Stakeholders in the Management
In the Articles of Association, there are no provisions regulating the participation of the stakeholders in the management.
However, their participation to management shall be supported provided that it does not corrupt the Company activities.
The corporate governance structure of the Company gives the opportunity to all stakeholders including the employees
and representatives to convey their worries with regard to transactions which are inappropriate in terms of legality and
ethics.
The Company employees have the opportunity to convey their expectations and requests through the representatives.
The Company employees are informed about their financial and social rights over the intranet. Besides, there is an
Employee Representative Agency in the Company where 40 representatives are present and which is formed by the
Company personnel to enable the contact between the Company personnel and the management.
The periodical meetings held with the employee representatives are the platforms where employers and employees
exchange their wishes, requests and opinions regarding the implementations. The meeting minutes formed as the result
of these meetings are announced to all personnel through the employee representatives page on the intranet. The
presidency of the employee representative is performed by Yasin Zengin and the coordinator role is carried out by Mert
Kovuk. The duties and authorizations of the Employee Representative Agency is to convey the wishes, proposals and
problems of the group personnel represented and to share the received opinions with the group personnel and to pay
efforts to provide an open and efficient communication between the personnel and the management.
In addition, since the beginning of 2013, parallel to the mission, vision, aims and sustainable success strategy of
ASELSAN, idea management system was put into force which promotes innovation, constant improvement and
efficiency. The ideas chosen to be realized by ASELSAN Idea Evaluation Committee are awarded.
13. Human Resources Policy
The human resources policy of our Company is to adopt an understanding which adds successful and dynamic
talents to ASELSAN family required pursuant to the vision of ASELSAN, which contributes to the sustainable success of
ASELSAN with employee oriented approaches, adds value and which takes side of its employee at all times.
Within this scope and pursuant to the vision, mission and the principles of the Company, regulations have been set
out pertaining to the working conditions of the personnel, their qualifications, recruitment, promoting, remuneration,
rewarding, dismissal, disciplinary treatments, rights, tasks and liabilities and other personal rights.
55% of our employees stand for the engineering group, 32% for the technician group 7% for the administrative group,
3% for the office personnel and 3% of the worker group.
Among the company personnel, there are 2 leaders, 1 chief, 10 personnel representing the engineers, 21 personnel
representing the technicians, 2 personnel representing the bureau personnel and 4 personnel representing the workers,
which make up a total of 40 personnel representatives.
There were no complaints related to discrimination from the employees in 2013. Performance and rewarding policies are
announced to all of our employees through Company directives.
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14. Ethical Rules and Social Responsibility
The ethical rules of our Company have been written and were published on our website. Furthermore, in order to
integrate and develop the ethical rules with the implementations, an Ethical Committee was established to meet the
evaluation, direction, consulting and recommendation requirements and create shared knowledge.
“Ethical Principles and Behavior Rules” document is announced to all ASELSAN personnel with all its exhibits and the
personnel makes a written commitment that s/he acknowledges the information and ethical values. When an amendment
or an update is made on this document, the changes are made known to all the personnel and training programs about
these changes are organized if seen necessary.
Ethical Committee comprises of nine members and the secretariat is handled by Human Resources Manager. Other
members are the representatives indicated by divisions; the Law Department and Procurement Department charged by
the CEO. If there are no changes in the organization, the Ethical Committee members serve at least for five years.
Ethical Committee meets 4 times a year unless an application or disobedience is present. CEO or any member of the
committee can call a meeting. Beyond intervening in applications and disobedience, Ethical Committee represents
reason and conscience of ASELSAN and works to increase the awareness in ASELSAN family. When there is an
application, required research conclusions and necessary documents are forwarded to Ethical Committee. Committee
Chairman presents these to the CEO and a parallel investigation is carried out. At the end of this investigation,
necessary steps are taken in accordance with relative law and ASELSAN regulations. The applications and
disobedience is reported periodically in Board of Directors meeting.
Audit Committee is responsible for establishing the mechanism where the complaints regarding the unethical behaviors
and acts against the regulations are evaluated, concluded and operated confidentially. The Committee is expected to
complete its studies on this matter during 2014.
A British institution, Carbon Disclosure Project (CDP) which reports how the risks of climate changes are managed
by the companies announced the 2012 results of the Turkey Carbon Transparency Project. Our Company, applied to
the project for the first time, was ranked in the “highest” category. ASELSAN, being proud to work to leave a better
world for the future generations, shall continue to take place in the national and international platforms with respect to
sustainability and climate change matters with its leading applications.
Our Company is sensitive on the social activities which are supported in favor of the public in general and are respectful
towards its environment. The greenhouse gas emissions of our Company are calculated by taking the TS ISO 14064
and Green House Protocol as the reference and are monitored all the time. We have certifications for ISO 14001
Environmental Management System and OHSAS 18001 Work Health and Safety Integrated Management System. In
addition, since 2013 for each new personnel recruited a new tree is planted.
Our company has supported the competition “New Ideas New Jobs” organized by METU and METU Teknokent in 2013
in Defence Industry category.
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PART IV - BOARD OF DIRECTORS
15. Structure and Formation of Board of Directors
3 members of 9 members of Board of Directors are independent members. The duties of Nomination Committee
are executed by Corporate Governance Committee. In 2012 General Assembly Meeting, Independent Members of
Board of Directors elected for 1 year of service were nominees for 2013 membership. The report on evaluation of list
of Independent Members of Board of Directors prepared by Corporate Governance Committee on 05.03.2013 was
presented to Board of Directors on the same date and the CV’s and independence declarations of 3 nominees were
announced on our website to public on 05.03.2013. As a result of the voting at the General Assembly Meeting on
29.03.2013, 3 nominees were elected as Independent Members of Board of Directors. There is a female member among
Independent Members of Board of Directors. There were no cases to eliminate the independency of the Independent
Members of the Board of Directors in 2013.
The CVs of the Members of the Board of Directors are included in the 2013 annual report and the information with
respect to their duty terms is provided in the below table.
Name Surname
Necmettin BAYKUL
Erhan AKPORAY
Halil SARIASLAN
Duty
Chairman / Managing Member
Vice Chairman / Managing Member
Independent Member
Election
Date
March 2013
March 2011
March 2013
Lamia Zeynep ONAY
Independent Member
March 2013 March 2014
Cumhur Sait Şahin
TULGA
Independent Member
March 2013 March 2014
Hasan CANPOLAT
Member
BoD
Decision on
16.05.2013
BoD
Decision on
16.05.2013
Mustafa Murat ŞEKER Member
Termination
Date
March 2014
March 2014
March 2014
First General
Assembly
Meeting
First General
Assembly
Meeting
Responsibilities
other than the
Company
Başkent University
International Trade
Department Chairman
METU Business
Administration
Department Lecturer
Mentoro Ltd. Şti.
Founding Partner,
Director
Consultant to Ministry
of National Defence
Head of Department
in Undersecretariat
for Defence Industries
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Name Surname
Duty
Election
Date
Orhan AYDIN
Member
16.05.2013
First General
Assembly
Meeting
Murat ÜÇÜNCÜ
Member
16.05.2013
First General
Assembly
Meeting
Cengiz ERGENEMAN CEO
January
2006
Termination
Date
Responsibilities
other than the
Company
Chairman of Board
of Directors in;
OSTİM Org. Industry
Region, OSTİM
Industrial Invest.
And Management
LTD, OSTİM Middle
East Industry and
Commerce Centre
R&D Educ. And
Support Inst., OSTİM
Small Industry Cite
Cooperative Building
House, Kızılcahamam
Aksaya Investment
Const. Management
LTD and OSTİM
Finance and Business
Centre Construction
Real Estate Electronic
Production LTD.;
Ankara Development
Agency Member of
Board of Directors,
Aydın Insurance LTD
Partner and Manager,
Ankara Chamber of
Industry Discipline
Committee Member
IGG ASELSAN
Integrated Sys. LLC
Board of Directors
Vice Chairman,
SASAD Board of
Directors Chairman
In article 13 on the Articles of Association titled “Duties and Authorization of the Board of Directors”, the duties and
authorization of the Board of Directors have been defined and the amendment to the Articles of Association with regard
to the compliance of these with the corporate governance principles was approved in 2013 General Assembly Meeting.
Besides, the Board of Directors Working Directive also describes the Duties and Authorization of the Board of Directors.
With the article 14 of the Articles of Association titled “Assignment of the Authorization to the CEO”, the assignment of
the authorization of the Board of Directors to the CEO has been set out. The duties and authorization of the executives
are described in the “Duties and Responsibilities Directive” formed within the Company.
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The duties of the Members of the Board of Directors and of the CEO carried out outside the Company, information
regarding the term of office and the statements of the board of members with respect to their independencies:
•There are no members of Board of Directors carrying out an executive duty.
•The statements of independence of the Independent Members of the Board of Directors have been provided at the
end of the Compliance Report.
•The Members of the Board of Directors fulfill their duties without any interest or benefit and pursuant; to the liabilities
and authorizations undertaken by the Board of Directors and to the regulations of the Turkish Code of Commerce and
Capital Markets Board.
•Members of the Board of Directors are liable not to enter into any commercial treatments directly or indirectly with the
Company that coincides with the Company objectives, on their behalf or on behalf of others without the consent of the
General Assembly.
16. Principles of Activity of Board of Directors
Board of Directors carries out its duties and responsibilities determined with reference to Turkish Commercial Code,
Capital Market Law and Articles of Association. In this context, the basis of duties and operations are indicated in details
in ASELSAN Board of Directors Operation Directives.
The agenda of the Board of Directors meetings is formed with the proposals of the Members of the Board of Directors
and the committees and the CEO, it is afterwards evaluated by the Board of Directors Chairman and finalized. The
subjects emerged as urgent and which are considered worthwhile to discuss may be added to the agenda during the
Board of Directors meeting.
As per article 10 of the Articles of Association, the Board of Directors assemble when required and at least once a
month. The number of Board of Directors Meetings in 2013 was 41 (27 decision in 41 meeting are interim decisions). All
of the Members of the Board of Directors attended 20 meetings.
The place, date, time and agenda of the next meeting is decided at the Board of Directors Meetings. Documents
pertaining to the meeting agenda are sent to the members of Board of Directors at least 3 work days before the meeting
by the General Management.
The Members of the Board of Directors attend the meetings and fulfill their duties as per their authorization and
responsibilities. The members who do not attend the meetings submit their excuses.
There is a secretary available for informing and enabling the communication of the Members of the Board of Directors.
Additionally, there is a reporter to carry out required tasks.
During recording the meeting resolutions to the Board of Directors Resolution Book, the Board of Directors Reporter acts
as per the articles 64, 65 and 390 of Turkish Code of Commerce regulated with respect to the liability to keep books, the
method of keeping books and the decisions of the Board of Directors, respectively.
According to this, the reporter enables, the date and number of the decision, names and surnames of the attendants,
the names and surnames of the members of Board of Directors who did not attend the meeting and their excuses, if any,
the agenda of the meeting, proposals and negotiations regarding the agenda, the decision, dissenting opinions, if any,
and the signatures of the attendants to be recorded in the book.
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All members have one right to vote, including the chairman. If the numbers of votes are equal, the vote of the chairman
does not change the result. Abstaining is not possible, either rejection or acceptation is voted. The vote of the abstaining
member is considered as a rejecting vote. The member casting a reject vote states the ground for this in the meeting
minutes and undersigns it. According to the article 11 of the Articles of Association titled “Quorum of Meeting and
Decision Making”; “The provisions of the Turkish Commercial Code, Capital Market Law, regulations of the Capital
Markets Board in connection with corporate governance and other relevant legislation are taken into account with
respect to the meetings and decision making quorums of the Board of Directors as well as with respect to any Board of
Directors members assuming duties and positions outside the Company. Any action and resolutions taken by the board
of Directors without complying with the Corporate Governance Principles, which are made obligatory as to be complied
by the Capital Markets Board, are invalid and considered as in contrary to the Articles of Association”. There were
no related party transactions or any other significant issue which had to be submitted to the approval of the general
assembly since they were not approved by the Independent Members of the Board of Directors.
The signed decisions are made available to the follow up of the Members of the Board of Directors and Executive
Committee Members in the electronic environment.
17. Number of Committees Formed in the Board of Directors with Their Structures and Independency
As per the title “Committees Formed Within the Board of Directors” in the Communiqué Regarding Determination and
Implementation of Corporate Governance Principles by the Capital Markets Board, our Company’s Board of Directors,
in the meeting dated 10.04.2012, formed an Audit Committee, Corporate Governance Committee and Early Detection
and Management of Risk Committee and announced this to the public. There are no Nomination and Remuneration
Committees within the Board of Directors and the duties of these are carried out by the Corporate Governance
Committee.
The directives of Audit Committee, Corporate Governance Committee and Early Detection and Management of Risk
Committee are made available at the website of our Company. The Independent Members of the Board of Directors and
four members of the Board of Directors have duties in more than one committee. This is because it is obligatory that all
members of the Audit Committee and the chairman of the other committees should be Independent Members of the
Board of Directors.
Boards of Directors have made the annual evaluation of the committees composed under its structure and the evaluation
report is available in 2013 Annual Report.
AUDIT COMMITTEE
Halil SARIASLAN
Lamia Zeynep ONAY
Chairman / Independent Member of Board of Directors
Member / Independent Member of Board of Directors
Member / Independent Member of Board of Directors
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The main duties of the Audit Committee that were set out in the “ASELSAN Audit Committee Work Directives” regulating
the working principles of Audit Committee are as follows:
•To enable the disclosure of the financial data of ASELSAN, to pursue the operation and efficiency of the accounting
system, independent audit, internal audit and internal control system of the company,
•To assemble at least every 3 months, to share the meeting minutes with the Board of Directors.
Meetings were held by Audit Committee on dates 05.03.2013, 16.05.2013, 22.08.2013 and 11.11.2013 regarding the
financial statements with the participation of the relevant independent audit company in 2013.
In order to maintain the efficiency of internal audit, attention was paid to strengthen the cooperation with Internal Audit
and Assessment Board (IAAB) and to the supervision of internal audit activities, direct and continuous communication
was established between Audit Committee and IAAB. A dimension of this communication; Audit Committee-IAAB
coordination meetings, were held four times on dates 27.02.2013, 15.05.2013, 17.09.2013 and 12.12.2013. Audit
Committee was informed about the IAAB activities in these meetings.
The Committee was active in two main topics in 2013:
i. Independent Audit Activities and Works Regarding the Audited Financial Statements:
“Communiqué on Financial Reporting in Capital Markets” Serial: II, 14.1 regulated the preparation of financial reports
and their basis, principles of presentation to the relevant parties. December 2012 and March 2013 financials were
prepared in accordance with the communiqué numbered Serial: XI, No:29 while June 2013 and September 2013
financials and annual report was prepared according to the communiqué numbered Serial: II, 14,1, and submitted to
Board of Directors by Audit Committee and presented to the public via Public Disclosure Platform.
As a result of the evaluation of independent audit firm for 2014, the decision making of DRT Bağımsız Denetim ve
Serbest Muhasebeci Mali Müşavirlik A.Ş. to give the service was handled by Procurement Department and the
purchasing decision was submitted for approval on Board of Directors meeting in 2014 January to be discussed in 31
March 2014 General Assembly Meeting.
ii. Internal Audit and Assessment Committee Activities:
Within the scope of the internal audit activities of the Company, the relations between the Presidency of Internal Audit
and Assessment Board (IAAB) and the Board of Directors have been carried out through Audit Committee. A direct and
continuous contact between Audit Committee and IAAB is present.
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CORPORATE GOVERNANCE COMMITTEE
Committee Members (2013 January - May)
Ahmet ŞENOL
Osman Kapani AKTAŞ
Erhan AKPORAY
Aykud Alp BERK
Chairman/Independent Member of the Board of Directors
Member/Member of the Board of Directors
Committee Members (2013 May - December)
Erhan AKPORAY
Hasan CANPOLAT
Orhan AYDIN
Murat ÜÇÜNCÜ
Chairman/Independent Member of the Board of Directors
Member/Vice Chairman of the Board of Directors
The main duties of the Corporate Governance Committee were set out in the “ASELSAN Corporate Governance
Committee Work Directives” as follows:
•To carry out studies for the implementation of Corporate Governance Principles in the Company,
•To observe whether the Corporate Governance Principles have been implemented or not and if not implemented to
determine the grounds for this and the conflicts of interest arising due to not complying with these principles and to
make proposals for improving the status,
•To monitor the studies of the Investor Relations Department,
•Corporate Governance Committee assembles every 3 months and in every situation when necessary. The meeting
minutes are submitted to the Board of Directors.
The Corporate Governance Committee assembled four times within the activity year 2013 on dates 29.01.2013,
05.05.2013, 22.08.2013 and 28.11.2013. The meeting minutes of the Committee may be reached on our website. The
committee was active in three respective tasks in 2013:
i. Operations of Investor Relation Department:
Until December 2013, the responsibilities and duties of investor relations were carried out by Investor Relations and
Subsidiaries Unit under Treasury and Fund Department; since December 1st of 2013, Investor Relations has been
structured as a separate Department. The representative of this department have attended the meetings of corporate
governance committee and informed the committee on the operations periodically.
The duty of monitoring the operations of Investor Relations Department was given to Corporate Governance Committee
with reference to the Communiqué. The applications for amendment in Articles of Association, organization of General
Assembly meeting for 2013, concluding the record of physical stakes and payments made to Central Registry Agency,
material events disclosure with reference to Capital Markets Board declarations, analyst and investors meetings and the
update of “Investor Relations” section of our website performed by Investor Relations in 2013 were reviewed.
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ii. Corporate Governance Rating:
The evaluation of corporate governance rating performed by SAHA Corporate Governance and Ranking Services LTD
on 13.12.2012 were concluded during the last quarter of 2013. According to the review, the score of 13.12.2013 8,77 out
of 10 was revised as 9,07 out of 10. The scores are respectively as follows; for shareholders 80,90, for Public Disclosure
and Transparency 99,19, for Stakeholders 94,85 and for Board of Directors, 89,87 out of 100. In this context, our share
remained in the same index since 14.12.2012. The report can be accessed on our website.
iii. Election of Independent Board Members
As given by Corporate Governance Principles, the responsibility of evaluating and reporting the nominations and their
independency status is given to the Nomination Committee, in companies where this committee is not formed because
of the structure of the Board of Directors, the responsibility is given to Corporate Governance Committee. Within this
context, the evaluation of nominations which were made until the end of February 2013 was carried on by the Committee
and the resulting nominee list was presented at the Board of Directors meeting on 05.03.2013. The list was proposed
to shareholders’ voting on General Assembly Meeting on 29.03.2013 and as a result Cumhur Sait Şahin TULGA, Lamia
Zeynep ONAY and Halil SARIASLAN were elected as independent members to serve for 1 year.
EARLY DETECTION AND MANAGEMENT OF RISK COMMITTEE
“Early Detection and Management of Risk Committee”, which was established with the resolution of ASELSAN Board of
Directors on 10.04.2012, 720/1 executes its operations within the framework of regulation ASY-01-066.
The member number of the committee which was working with 3 Board of Directors members and 2 consultant members
until May 2013, was increased to 6 with 767/1.c. numbered ASELSAN Board of Directors resolution. The members are
listed below:
Committee Members (2013 January - May)
Lamia Zeynep ONAY
Birol ERDEM
Erhan AKPORAY
Chairman / Independent Member of the Board of Directors
Member / Board of Directors Vice Chairman
Member / Member of the Board of Directors
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Committee Members (2013 May - December)
Lamia Zeynep ONAY
Erhan AKPORAY
Hasan CANPOLAT
Murat ÜÇÜNCÜ
Orhan AYDIN
Chairman / Independent Member of the Board of Directors
In order to support the Corporate Risk Governance System development operated by the committee, Chief Financial
Officer and Strategic Management Director were involved in the committee as consultants. In addition, the secretary
duties are operated by Strategic Management Directorate.
The committee continues its studies in determining the risks which may prevent ASELSAN from reaching its goals;
governing these risks in accordance with the company’s risk handling profile, its reporting; consideration through
decision mechanisms and establishment of internal control. In this respect, in 2013, the committee held 8 meetings on
10.01.2013, 24.01.2013 20.03.2014, 18.04.2013, 12.06.2013, 30.07.2013, 24.10.2013 and 25.12.2013. Committee’s
works are summarized below.
“ASELSAN Risk Map” and “ASELSAN Risk Inventory Report” were completed in January 2013 and submitted to Board
of Directors’ information and approval.
”2012 Evaluation Report” was prepared and submitted to Board of Directors’ information on February 2013.
As a result of legal obligations, the risks to be placed in the annual report were indicated and the evaluations of risks
were included in “ASELSAN Annual Report”.
“Corporate Risk Evaluation Report” was completed and has been submitted to Board of Directors with a 2 months
period since April 2013. Within the context of the operations followed with the report;
•Important risks beared by ASELSAN were identified and risk classification, explanation, rating, strategy, owner, present
operations and relevant indicators were included in the report.
•In order to follow the risk developments, for adoptable risks, the utilization of indicators was embraced. In this respect,
relevant indicators were evaluated, alternative indicators were investigated and necessary indicators were selected
with detailed explanations. The surveillance of risks began with the determination of responsible people about relevant
data.
•Warning benchmarks for risk indicators were determined and it was targeted to draw the attention of Board of
Directors to the risks which go beyond the benchmark at the end of the report.
•In the meetings held by the committee, present developments regarding the risks began to be evaluated. In order
to increase the operation of Corporate Risk Governance System and reducing present risks to minimum, Committee
suggestions and proposals are shared with related departments.
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18. Risk Management and Internal Audit Mechanism
Internal audit operations and corporate governance are facilitated via risk management and development of efficiency of
internal audit procedures in ASELSAN.
The most important role of internal audit operations is assuring the Audit Committee and Board of Directors that the risks
are being managed effectively. Annual audit plan and work programs are prepared on a risk basis and audit results
are reported periodically to Audit Committee. Harmonization with legal and firm regulations, the status of application of
ethical principles and risk riddling off is evaluated by internal audit department.
19. Strategic Objectives of the Company
The Board of Directors is the top level body to make strategic decisions and to execute and represent. As per the
Articles of Association of the Company, the Board of Directors is responsible to determine the strategic plans and control
their implementations.
Strategic governance process is a part of Corporate Governance and is managed by Strategic Governance Committee
formed by the members of Board of Directors and Strategic Management Director. Reaching ASELSAN’s long term
goals and sustaining success can be achieved through environment friendly strategies.
ASELSAN’s vision is to become one of the biggest 50 defence industry companies. In this respect, perspective
plans looking beyond 10 years, 5 year plans updated every year and 3 year budget plans are prepared. With this
methodology, short and middle term targets are specified by considering long term goals. The operations to be carried
out for these targets are executed by Company Divisions and performance evaluations are made based on Balanced
Scorecard.
20. Financial Rights
Monthly remunerations provided to our Members of the Board of Directors are determined by the General Assembly
and no other benefits are granted apart from the monthly remuneration. Pursuant to the resolution taken at the 38th
Ordinary General Assembly held on 29.03.2013, the Members of the Board of Directors are paid TL 2.200 per month. As
for the determination of the financial rights of the board members, no reward system is applied to reflect the Company
performance and which is based on the performance of the Members of the Board of Directors.
No Member of the Board of Directors or executives has been provided with loans or credits by our Company.
The remuneration principles for the Board of Directors and the Senior Managers of the Company have been formed and
the shareholders were provided with this information at the Ordinary General Assembly Meeting held in 2012 and it was
announced to the public through our website. As an obligation of the Corporate Governance Communiqué numbered II17.1 published in 2014, the remuneration policy was reviewed and it will be submitted to the information of shareholders
during General Assembly Meeting of 2014 where 2013 operations will be discussed.
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Statement of Independence
To the Board of Directors of ASELSAN Elektronik Sanayi ve Ticaret A.Ş.;
I hereby agree, represent and undertake that I comply with the regulations of the Capital Market Board related to
Independence Board Membership and with the criteria determined for Independence Board Membership within the scope of
Corporate Governance Principles.
I hereby submit this to the knowledge of the Board of Directors, shareholders and all relevant parties.
Sincerely yours,
Prof. Dr. Halil SARIASLAN
27.02.2013
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Sincerely yours,
Assoc. Prof. Dr. Lamia Zeynep ONAY
27.02.2013
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118
Sincerely yours,
27.02.2013
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APPROVE
Necmettin BAYKUL
Erhan AKPORAY
Chairman of Board of Directors
Halil SARIASLAN
Lamia Zeynep ONAY
Hasan CANPOLAT
Orhan AYDIN
Murat ÜÇÜNCÜ
Cengiz ERGENEMAN
Chief Executive Officer
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Statement of Responsibility
TO THE PRESIDENCY OF
BORSA ISTANBUL
34467-Emirgan-İSTANBUL
05/03/2014
AS300-14M-6709
ASELSAN ELEKTRONİK SANAYİ VE TİCARET A.Ş.
BOARD OF DIRECTORS MEETING ON APPROVAL OF FINANCIAL TABLES AND ANNUAL REPORTS
DATE OF RESOLUTION: 05/03/2014
RESOLUTION NUMBER: 802
STATEMENT OF RESPONSIBILITY AS PER SECTION TWO, ARTICLE 9 OF THE CAPITAL MARKETS BOARD
COMMUNIQUÉ SERIAL NUMBERED II, NUMBERED 14
We hereby declare that;
a) We have examined the consolidated balance sheet dated 31/12/2012 and comparative consolidated balance sheet
dated 31/12/2013, consolidated income statement issued for the period 01/01/2012 - 31/12/2012 and comparative
consolidated income statement issued for the period 01/01/2013 - 31/12/2013, consolidated additional financial
tables, all audited independently, notes dated 31/12/2013 and annual report of the Board of Directors issued for the
period ending on 31/12/2013,
b) As per the information we obtained in line with our duties and responsibilities at the company, the financial tables
and annual report of the Board of Directors do not include any comments which materially misrepresent the facts
and any missing data which might be misleading as of the announcement date,
c) As per the information we obtained in line with our duties and responsibilities at the Company, the consolidated
financial statements prepared in accordance with the CMB Communiqué Serial II, No:14.1, accurately represents
the assets, liabilities, financial position and profit or loss informations of the Company and the companies in the
scope of consolidation; the annual report accurately represents the development and performance of the business,
the financial position of the Company and the companies in the scope of consolidation and the significant risks and
uncertainties which may company faces.
Regards,
ASELSAN A.Ş.
Halil SARIASLAN
Audit Committee Chairman
Lamia Zeynep ONAY
Audit Committee Member
Dr. Ahmet DEMİR Deputy General Manager
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Board of Directors Assessment Report Regarding
Committee Activities in 2013
In accordance with the title “Committees Formed within the Structure of Board of Directors” of Capital Markets Board’s
(CMB) “Communiqué on Determination and Application of Corporate Governance Principles”; Audit Committee,
Corporate Governance Committee and Early Detection and Management of Risk Committee were formed and disclosed
to public in our Company’s Board of Directors meeting held on 01.04.2013. There are no Nomination and Remuneration
Committees within the formation of Board of Directors and in accordance with the Communiqué the duties of these are
carried out by the Corporate Governance Committee.
At our Company’s Board of Directors meeting held on 01.04.2013 following the Ordinary General Assembly Meeting held
on 29.03.2013; in accordance with the Communiqué of CMB it was resolved that,
•Independent Member of Board of Directors Halil SARIASLAN shall be assigned as the chairman and Independent
Members of Board of Directors Lamia Zeynep ONAY and Cumhur Sait Şahin TULGA shall be assigned as members of
the Audit Committee,
•Independent Member of Board of Directors Cumhur Sait Şahin TULGA shall be assigned as the chairman and
Ahmet ŞENOL, Osman Kapani AKTAŞ, Erhan AKPORAY and Aykud Alp BERK shall be assigned as the members of
Corporate Governance Committee,
•Independent Member of Board of Directors Lamia Zeynep ONAY shall be assigned as the chairman and Birol ERDEM
and Erhan AKPORAY shall be assigned as the members of the Early Detection and Management of Risk Committee.
•At the Board of Directors meeting held on 01.04.2013 after the changes made regarding the members of Board of
Directors on 16.05.2013, it was resolved that,
•Hasan CANPOLAT, Orhan AYDIN, Mustafa Murat ŞEKER and Murat ÜÇÜNCÜ shall be elected for the chairs emptied
by Ahmet ŞENOL, Osman Kapani AKTAŞ and Aykud Alp BERK at the Corporate Governance Committee,
•Hasan CANPOLAT, Orhan AYDIN, Mustafa Murat ŞEKER and Murat ÜÇÜNCÜ shall be elected for the chair emptied by
Birol ERDEM at the Early Detection and Management of Risk Committee.
While resolving on the forming of committees, Board of Directors paid attention for the members of the Audit Committee;
the chairmen of Corporate Governance Committee and Early Detection and Management of Risk Committee to be
chosen from the independent members of the Board of Directors, within the framework of Capital Markets Board
regulation.
The work directives, which regulate the field of activities and working principles of the committees, are approved by the
Board of Directors and are submitted to public information in our Company website.
In 2013, each Board of Directors Committee fulfilled its duties and responsibilities and worked efficiently, with regard to
Corporate Governance Principles and their own work directives.
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Audit Committee assembled four times within the year 2013 on dates 05.03.2013, 16.05.2013, 22.08.2013 and
11.11.2013. The issues submitted to the information and assessment of Audit Committee and the tasks carried out within
the scope of the meetings held, are summarized below:
•The discussion of financial tables dated 31.12.2012, 31.03.2013, 30.06.2013 and 30.09.2013 and their submission to
Board of Directors.
•The discussion of 2012 profit distribution proposal.
•Assessments regarding the election of the independent audit company which will carry the audit task in year 2013 and
its submission to Board of Directors.
•Pursuant to CMB’s resolution of meeting held in 07.06.2013 and numbered 20/670, discussion of new financial table
templates and manuals that came into force with regard to the Communiqué on Financial Reporting in Capital Markets.
Corporate Governance Committee assembled four times within the year 2013 on dates 29.01.2013, 05.03.2013,
22.08.2013 and 28.11.2013. The issues submitted to the information and assessment of Corporate Governance
Committee and the tasks carried out within the scope of the meetings held, are summarized below:
•Election process of independent board of directors members.
•Investor Relations Department and its operations.
•Corporate governance rating.
•Registration of physically possessed shares.
•Preparation of ASELSAN 2012 Compliance with Corporate Governance Principles Report and its submission to Board
of Directors.
Corporate Governance Committee which was formed in order to monitor our Company’s compliance to Corporate
Governance Principles, to conduct studies about the enhancement of compliance and to propose suggestions to the
Board of Directors; have detected whether Corporate Governance Principles are applied in our Company or not, and if
not, the reason for it along with the conflicts occurring because of not complying fully to these principles; have submitted
proposals for improvement of Corporate Governance practices to the Board of Directors and monitored the activities of
Investor Relations Department.
Early Detection and Management of Risk Committee assembled eight times within the year 2013 on dates 10.01.2013,
24.01.2013, 20.03.2013, 18.04.2013, 12.06.2013, 30.07.2013, 24.10.2013 and 25.12.2013. The issues submitted to the
information and assessment of Early Detection and Management of Risk Committee and the tasks carried out within the
scope of the meetings held, are summarized below:
•The formation of Risk Categories schemas in order to classify ASELSAN’s potential risk
•The formation of Risk Evaluation Survey that was conducted in top management level and the monitoring of its
implementation.
•Preparation of Risk Inventory Report.
•Preparation of Corporate Risk Assessment Report and its submission to Board of Directors.
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Early Detection and Management of Risk Committee which carried out studies in order to early-detect the risks that
threaten the existence, development and continuity of our Company, to take precautions against detected risks and
manage risks; have also inspected our Company’s risk management systems in compliance with the Corporate
Governance Principles and Early Detection and Management of Risk Committee work directives throughout the year
since its establishment.
Erhan AKPORAY
Necmettin BAYKUL
Chairman of Board of Directors
Halil SARIASLAN
Lamia Zeynep ONAY
Hasan CANPOLAT
Orhan AYDIN
Murat ÜÇÜNCÜ
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124
Audit Committee Work Directives
1. PURPOSE
The purpose of these directives is to determine duties, authorities, responsibilities and work principles of the Audit
Committee.
2. SCOPE
These directives cover the works and activities to be performed by the Audit Committee as per the related regulations.
3. DEFINITIONS
3.1. Independent Auditing Firm (IAF): Firms meeting the requirements of the Capital Markets Board Communiqué and
granted with the authority of independent audit on the capital market as per Article 22, 4/c of the Act.
3.2. Auditor: Auditor titles of any seniority and rank assigned to make audits by the Independent Auditing Firms.
3.3. Audit Committee: Committee appointed among the company’s Board of Directors as per Capital Markets Board
Communiqué Serial numbered X, numbered 22.
3.4. Audit Committee Secretariat: ASELSAN personnel arranging operations and meetings of Audit Committee, archiving
correspondences and coordinating communication between the members.
3.5. Financial Tables: Balance sheets and incomes statements issued as interim and annual documents, including the
footnotes, and tables enclosed to such documents.
3.6. Financial Reports: Reports including financial tables, Board of Directors activity reports and states of responsibility.
3.7. Internal Auditor: Personnel assigned for internal auditing activities.
3.8. Presidency of Internal Audit and Assessment Board (PIAAB): ASELSAN Department in charge of internal audit
activities.
3.9. Executives: Persons having titles such as under Financial Affairs, President, Director and Manager that are
authorized to represent and bind the company.
3.10. Stakeholders: In achieving the objectives of the Company or with an interest in the activities of employees,
creditors, customers, suppliers, various non-governmental organizations as well as individuals, institutions or interest
groups.
4. RELATED REFERENCE DOCUMENTS
4.1. Capital Markets Board Communiqué on Independent Audit on Capital Market dated 12.06.2006, Serial numbered X
and numbered 22.
4.2. Capital Markets Board Communiqué on Determination and Practice of Corporate Governance Principles dated
03.01.2014, Serial numbered II and numbered 17.
4.3. ASELSAN Board of Directors Work Directives numbered ASY-01-060.
4.4. Turkish Commercial Code (TCC).
5. DUTIES AND RESPONSIBILITIES
5.1. BOARD OF DIRECTORS’ DUTIES AND RESPONSIBILITIES REGARDING THE AUDIT COMMITTEE
5.1.1. Appointing Audit Committee members.
5.1.2. Authorizing Committee Members.
5.1.3. Making separate Board of Directors Resolution for approving interim and annual financial tables and reports
coordinated by the Committee and submitted to the Board of Directors.
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125
5.1.4. Taking necessary actions for facilitating operations of Audit Committee members.
5.2. DUTIES, AUTHORITIES AND RESPONSIBILITIES OF THE AUDIT COMMITTEE
5.2.1. GENERAL DUTIES AND RESPONSIBILITIES OF THE AUDIT COMMITTEE
5.2.1.1. The Audit Committee shall ensure; company’s accounting system, public disclosure of financial information,
independent audit of the Company’s internal control and makes supervision of the operation and effectiveness of the
internal control system. Selection of independent audit company, prepared independent audit contracts and the initiation
of the audit process and the independent auditors’ work in each stage is carried out under the supervision of Audit
Committee.
5.2.1.2. The Audit Committee notify, their duties and responsibilities identified in the field and their evaluations and
recommendations on the subject immediately to the Board of Directors.
5.2.1.3. The Audit Committee’s duties include reviewing, settling the complaints forwarded to the Company about
ASELSAN’s accounting, internal audit system and independent audit; determining the methods and criteria to be
practiced on assessing company personnel’s statements on company’s accounting and independent audit as per the
confidentiality principles are determined by Audit Committee.
5.2.1.4. The Audit Committee might seek assistance of independent consultants on matters required for its operations
provided that the costs shall be covered by ASELSAN. But in this case the person who received services / organizations
with information about these people / organizations of any relationship with the company on the issue of whether
information is given in the annual report.
5.2.1.5. The duties and responsibilities of the Audit Committee shall not relive Board of Directors from its responsibilities
imposed by the new Turkish Commercial Code.
5.2.2. DUTIES AND RESPONSIBILITIES OF THE AUDIT COMMITTEE REGARDING INDEPENDENT AUDIT OF ASELSAN
5.2.2.1. The Audit Committee shall determine the services to be provided by the Independent Auditing Firm and
services and submit to the Board of Directors approval.
5.2.2.2. It shall ensure signing a contract with IAF.
5.2.2.3. It shall monitor compliance with contract provisions during IAF operations.
5.2.2.4. It shall always be in contact with the independent auditor for monitoring any incidents having an impact on
the independency or objectivity of the independent auditor and shall ensure elimination of such incidents, if any, and
efficient performance of the auditor.
5.2.2.5. It shall evaluate the outcomes of audits performed by IAF and financial tables at the joint meetings to be
scheduled.
5.2.2.6. It shall evaluate the important findings received from IAF about ASELSAN accounting policy and practices and
the auditor’s suggestions.
5.2.2.7. It shall obtain the correspondences made between IAF and ASELSAN Management from the Firm.
5.2.2.8. It shall ensure that Independent Audit activities are included on the Board of Directors agenda minimum every 3
months for the purpose of determining efficiency of IAF operations.
5.2.2.9. IAF shall immediately inform the Audit Committee in written about important issues related to ASELSAN’s
accounting policy and practices, alternative implementation and public disclosure options as per the firm’s accounting
standards and accounting principles previously declared to the Company management and possible outcomes,
practice suggestions as well as important correspondences made with the Company management.
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126
5.2.3. DUTIES AND RESPONSIBILITIES OF THE AUDIT COMMITTEE REGARDING THE FINANCIAL REPORTS
5.2.3.1. The Audit Committee shall consult the company’s authorized executives and IAF about interim and annual
financial reports to be disclosed to the public in terms of compliance to the Company’s accounting principles and to the
actual figures and shall inform the Board of Directors in written with its own evaluation.
5.2.3.2. It shall sign the interim and annual financial tables, activity reports controlled and undersigned by the
ASELSAN’s authorized executives as well as the statement of responsibility enclosed as Annex-A quarterly and ensure
public disclosure of these.
5.2.3.3. Financial Reports approved by the Audit Committee and Board of Directors shall be disclosed to the public on
the Public Disclosure Platform and Company’s website.
5.2.4. DUTIES AND RESPONSIBILITIES OF THE AUDIT COMMITTEE REGARDING TO INTERNAL CONTROLS
5.2.4.1 It shall monitor efficiency and adequacy of the internal control system adopted by the company and its
subsidiaries and ensures its acknowledgement by the personnel and support of the management.
5.2.4.2. It shall evaluate auditor and internal auditor suggestions related to internal control and whether or not the
necessary ones are applied.
5.2.4.3. It shall monitor the process of forming a mechanism for reviewing and settling complaints received from
Stakeholders related to company transactions, which violate the regulation and are unethical, and its operations as per
the confidentiality principle.
5.2.5. DUTIES AND RESPONSIBILITIES OF THE AUDIT COMMITTEE REGARDING TO THE INTERNAL AUDITS
5.2.5.1. It shall review efficiency of PIAAB directives, structure and activities and ensure settlement of particulars limiting
the internal audit operations.
5.2.5.2. It shall monitor the coordination and communication between the PIAAB and Company’s other departments,
subsidiaries and independent audits for ensuring smooth processes.
5.2.5.3. It shall evaluate the audit plans and internal audit reports issued by PIAAB.
5.3 DUTIES AND RESPONSIBILITIES OF AUDIT COMMITTEE SECRETARIAT
5.3.1. It shall provide communication between the members, prepare committee meetings, keep meeting minutes and
duly archive correspondences.
5.3.2. It shall plan, realize and follow up formalities before, during and after the Committee meetings in order to ensure
outmost efficiency.
5.3.3. It shall ensure timely communication all of kinds of information to the committee members.
5.3.4. It shall always keep the records available to the members.
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127
6. STRUCTURE OF THE AUDIT COMMITTEE
6.1. The Audit Committee shall be as a member of Board of Directors and have minimum 2 (two) members. If the
committee has two members the both members shall be Board of Directors Non-executive independent members. If
there are more than two members, then the same rule shall be applicable for majority of the members. Members of the
Audit Committee should have experience at least five (5) years at audit / accounting and finance subject.
6.2. As per the Capital Markets Board regulations, the Audit Committee shall be formed and authorized on the first Board
of Directors Meeting held after the Annual Ordinary ASELSAN General Assembly Meeting.
6.3. At least two Audit Committee members shall be required for the committee meetings and at least two members are
required for decisions.
6.4. The Audit Committee shall convene minimum every 3 months and four times a year and outcome of the meeting
connecting with the minute submitted to the Board of Directors. The audit committee’s activities and about the outcome
of the meeting must be disclosed in the annual report. During the period how many times the audit committee makes
written notification to the Board shall indicated in the annual report.
6.5. The Committee’s secretariat duties related to the financial tables shall be performed by the Chief Office of Capital
Markets Board Financial Control and Reporting attached to the Accounting Department and the secretariat duties
related to internal control and internal audit activities shall be performed by PIAAB.
7. ENFORCEMENT
These directives have been approved by the Board of Directors as per the resolution dated 22.09.2003 and numbered
443/16 and came into force as of 25.09.2003
8. EXECUTION
The Audit Committee shall be responsible for executing the provisions listed on these directives.
9. CIRCULATION PLAN
The document shall be circulated as per ASELSAN PLAN A. It shall be published to all users via intranet and internet.
10. ANNEX- STATEMENT OF RESPONSIBILITY
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128
ANNEX- STATEMENT OF RESPONSIBILITY
TO THE PRESIDENCY OF
BORSA ISTANBUL
34467-Emirgan-İSTANBUL
..........
/ .......... / 20 ..........
AS300-14M
ASELSAN ELEKTRONİK SANAYİ VE TİCARET A.Ş.
BOARD OF DIRECTORS MEETING ON APPROVAL OF FINANCIAL TABLES AND ANNUAL REPORTS
DATE OF RESOLUTION:
RESOLUTION NUMBER:
STATEMENT OF RESPONSIBILITY AS PER SECTION TWO, ARTICLE 9 OF THE CAPITAL MARKETS BOARD
COMMUNIQUÉ SERIAL NUMBERED II, NUMBERED 14
a) We have examined the consolidated balance sheet dated ...../...../20xx and comparative consolidated balance sheet
dated ...../...../20xx, consolidated income statement issued for the period ...../...../20xy - ...../...../20xy and comparative
consolidated income statement issued for the period ...../...../20xx - ../../20xx, consolidated additional financial tables,
all audited independently, notes dated ...../...../20xx and annual report of the Board of Directors issued for the period
ending on ...../...../20xx,
b) As per the information we obtained in line with our duties and responsibilities at the company, the financial tables and
annual report of the Board of Directors do not include any comments which materially misrepresent the facts and
any missing data which might be misleading as of the announcement date,
c) As per the information we obtained in line with our duties and responsibilities at the Company, the consolidated
financial statements prepared in accordance with the CMB Communiqué Serial II, No:14.1, accurately represents the
assets, liabilities, financial position and profit or loss informations of the Company and the companies in the scope
of consolidation; the annual report accurately represents the development and performance of the business, the
financial position of the Company and the companies in the scope of consolidation and the significant risks and
uncertainties which may company faces.
Regards,
ASELSAN A.Ş.
Audit Committee Chairman
Deputy General Manager
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129
Board of Directors’ Early Detection and Management
of Risk Committee Work Directives
1. PURPOSE
The purpose of these directives is to determine the duties, authorities, responsibilities and work principles of the Early
Detection and Management of Risk Committee, which is established under Article 378 of the Turkish Commercial
Code numbered 6102 and Board of Directors Resolution dated 10.04.2012, as per the Turkish Commercial Code and
Corporate Governance Principles announced by the Capital Markets Board.
2. SCOPE
These directives cover works and actions to be performed as per the Turkish Commercial Code and Corporate
Governance Principles by the Early Detection and Management of Risk Committee and/or Company personnel not a
member of the Committee but assigned by the Committee.
3. DEFINITIONS
3.1. Independent Auditing Firm (IAF): Firms meeting the requirements of the Capital Markets Board Communiqué and
granted with the authority of independent audit on the capital market as per Article 22/d of the Act.
3.2. Auditor: Auditor titles of any seniority and rank assigned to make audits by the Independent Auditing Firms
3.3. Early Detection and Management of Risk Committee (Committee): A committee to be appointed by the Board of
Directors among the Board of Directors members or third parties specialized in certain areas for the purpose of fulfilling
the liabilities listed on the Turkish Commercial Code for systematic early detection and management of company risks
and executing, coordinating related risks.
3.4. Early Detection and Management of Risk Committee Secretariat (Secretariat):
ASELSAN personnel arranging operations and meetings of Early Detection and Management of Risk Committee,
archiving correspondences and coordinating communication between the members.
3.5. Capital Markets Board: Public legal entity established as per Article 17 of the Capital Market Law.
3.5. Company: ASELSAN Elektronik Sanayi ve Ticaret A.S.
4.1. Turkish Commercial Code.
4.2. Capital Markets Board Regulations.
4.2. Corporate Governance Principles published by the Capital Markets Board
4.3. Regulations, provisions and principles on ASELSAN Articles of Association
5.1. DUTIES AND RESPONSIBILITIES OF ASELSAN EARLY DETECTION AND MANAGEMENT OF RISK COMMITTEE
5.1.1. The main function of the Early Detection and Management of Risk Committee is early detection of risks threatening
existence, development and sustainability of ASELSAN as well as taking action for the risks determined and trying to
manage the risks determined.
5.1.2. The Committee shall determine, identify the potential risks having an impact on ASELSAN beforehand and ensure
duly management of the risks according to the risk-taking approach of the company.
5.1.3. It shall evaluate the situation by means of a report to be submitted to the Board of Directors every two months
as well as pointing out the threats, if any, and suggesting solutions. The Committee shall also present the report to the
Auditor.
5.1.4. It shall review the risk management systems minimum once a year.
5.1.5. The Committee shall advise the Board of Directors on internal audit systems including risk management and
information systems and processes minimizing the risks and related impacts to be suffered by the shareholders and
company stakeholders.
5.1.6. The Committee shall prepare an annual assessment report, including meeting frequency of Committee members
and activities performed, which shall be included in the Annual Company Activity Report and basis to the Board of
Directors assessment related to the work principles and Committee’s efficiency.
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130
Board of Directors’ Early Detection and Management
of Risk Committee Work Directives
5.1.7. The resolutions taken at the meetings shall be documented and undersigned by the Committee Members and
archived by the Secretariat.
5.2. DUTIES AND RESPONSIBILITIES OF THE EARLY DETECTION AND MANAGEMENT OF RISK COMMITTEE
SECRETARIAT
5.2.1. It shall provide communication between the members, prepare committee meetings, keep meeting minutes and
outmost efficiency.
5.2.3. It shall ensure timely communication all of kinds of information to the committee members.
6. STRUCTURE AND AUTHORITIES OF THE EARLY DETECTION AND MANAGEMENT OF RISK COMMITTEE
6.1. COMMITTEE’S STRUCTURE
6.1.1. The Committee shall be formed and authorized at the first Board of Directors meeting held after the Annual
Ordinary General Assembly Meeting of the company, as per the Capital Markets Board regulations.
6.1.2. The Committee shall have minimum two members. If the committee has two members then both members shall
be Board of Directors members not having executive function and if there are more than two members, then majority
of the members shall not have executive functions. Third parties specialized in certain areas can also be appointed as
Committee members. The Committee chairman shall be appointed among Independent Members of Board of Directors.
6.1.3. The Chief Executive Officer / General Manager shall not take office in the committee.
6.1.4. The secretariat formalities of the Committee shall be performed by Strategy Management Directorate.
6.1.5. One more than half of the total members shall be required for committee meetings and majority is required for
decisions.
6.1.6. The Committee shall convene once every two months, unless otherwise is required, and, if required, it shall
convene at the Company’s registered office following a call to be made by the Secretariat on behalf of the Committee
Chairman. The Committee Chairman might reschedule the meeting date, hour and place provided that the Committee
Members are informed beforehand.
6.2. AUTHORITIES OF THE COMMITTEE
6.2.1. If required, the Committee shall start special inspections and appoint people specialized in their areas as
consultant for the purpose of ensuring assistance in such inspections.
6.2.2. If required, the Committee shall hold meetings with representatives of Company’s related parties and specialists,
including Company personnel or subsidiaries; and it shall seek external and professional consultancy service.
6.2.3. The Committee shall act according to its authorities and responsibilities and make recommendations to the Board
of Directors however the Board of Directors shall always have the final decision making responsibility and the Committee
shall not relieve the Board of Directors from its duties and responsibilities arising from the Turkish Commercial Code.
7. ENFORCEMENT
750/4.3.e and came into force as of 29.11.2012.
8. EXECUTION
ASELSAN Early Detection and Management of Risk Committee shall be responsible for executing the provisions listed
on these directives.
9. CIRCULATION PLAN
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131
Board of Directors’ Corporate Governance Committee Work Directives
1. PURPOSE
The purpose of these directives is to determine the duties, authorities, responsibilities and work principles of the
Corporate Governance Committee established as per the Corporate Governance Principles announced by the Capital
Markets Boards (CMB).
2. SCOPE
These directives cover works and actions to be performed as per the Corporate Governance Principles by the Corporate
Governance Committee and/or Company personnel not a member of the Committee but assigned by the Committee.
3. DEFINITIONS
3.1. Corporate Governance: Index of relations between the Board of Directors, shareholders and other stakeholders of a
company.
3.2. Corporate Governance Committee (Committee): A committee to be appointed by the Board of Directors among the
Board of Directors members or third parties specialized in certain areas for the purpose of executing and coordinating
Corporate Governance Principles related formalities of the Company, provided that majority of the members are from
the Board of Directors and the executive of Investor Relations Department shall be appointed as a member of the
Committee.
3.3. Corporate Governance Committee Secretariat (Secretariat): ASELSAN personnel arranging operations and
meetings of Corporate Governance Committee, archiving correspondences and coordinating communication between
the members.
3.4. Capital Markets Board: Public legal entity established the Capital Market Law numbered 6362.
3.5. Company: ASELSAN Elektronik Sanayi ve Ticaret A.Ş.
4.1. Capital Markets Board Regulations.
4.2. Corporate Governance Principles published by the Capital Markets Board.
4.3. Prepared as per the regulations, provisions and principles on ASELSAN Articles of Association.
5.1. DUTIES AND RESPONSIBILITIES OF ASELSAN CORPORATE GOVERNANCE COMMITTEE
5.1.1. The Corporate Governance Committee shall mainly work on implementing corporate governance principles at the
Company.
5.1.2. The Committee shall determine whether or not the Corporate Governance Principles are implemented and if not
implemented, the Committee shall determine the reasons as well as conflicts of interest caused by failing to fully comply
with these principles.
5.1.3. It shall monitor the operations of Investor Relations Department.
5.1.4. It shall play a leading part in maintaining effective communication between the Board of Directors, Company and
shareholders, eliminating and settling any possible disputes as well as advising the Board of Directors accordingly.
5.1.5. The Committee shall advise the Board of Directors on due effectiveness of infrastructures related to management
applications aiming at improving company performance as well as acknowledgement by the personnel and support of
the management.
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132
5.1.6. The Committee shall issue the Company’s Corporate Governance Compliance Report.
5.1.7. The Committee shall revise the Company’s Activity Report to be disclosed to the public and checks whether or not
the information included in the Report conform to the information possessed by the Committee.
5.1.8. The Committee shall prepare an annual assessment report, including meeting frequency of Committee members
and activities performed, which shall be included in the Annual Company Activity Report and basis to the Board of
Directors assessment related to the work principles and Committee’s efficiency.
5.1.9. The Committee shall make suggestions ensuring compliance to the law and regulations, company’s Information
Policy in terms of public disclosures to be made.
5.1.10. The Committee shall present its operations and suggestions to the Board of Directors in the form of a report.
5.1.11. The resolutions taken at the meetings shall be documented and undersigned by the Committee Members and
archived by the Secretariat.
5.1.12. If Nomination Committee and Remuneration Committee cannot be established separately due to the structure
of the Board of Directors, the Committee shall perform the duties assigned to these committees as per the Corporate
Governance Principles published by the Capital Markets Board.
5.1.13. Within the scope of the responsibilities of Nomination Committee; the Committee carries the duties on creating
a transparent system for the evaluation of the nominees for Board of Directors and the nominees for the executives with
administrative responsibility, their training and setting out policies and strategies regarding these matters. In this context,
the Committee also regularly makes assessments on the structure and efficiency of Board of Directors and presents
suggestions for improvement related to these issues.
5.1.14. Within the scope of the responsibilities of Remuneration Committee; the Committee determines and monitors
the principles, criteria and the practices for the remuneration of the members of Board of Directors and executives with
administrative responsibility, considering the long term objectives of the Company. In this context, the Committee also
presents suggestions about the remuneration of the members of Board of Directors and executives with administrative
responsibility, taking the level of achievement regarding the remuneration criteria met into account.
5.2. DUTIES AND RESPONSIBILITIES OF THE CORPORATE GOVERNANCE COMMITTEE SECRETARIAT
5.2.1. It shall provide communication between the members, prepare Committee meetings, keep meeting minutes and
outmost efficiency.
5.2.3. It shall ensure timely communication all of kinds of information to the Committee members.
5.2.5. It shall periodically submit reports on investor questions and content.
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133
6. STRUCTURE AND AUTHORITIES OF THE CORPORATE GOVERNANCE COMMITTEE
6.1. COMMITTEE’S STRUCTURE
6.1.1. The Committee shall be formed and authorized at the first Board of Directors meeting held after the Annual
Ordinary General Assembly Meeting of the company, as per the Capital Markets Board regulations.
6.1.2. The Committee shall be formed by at least 3 (three) members; two of whom shall be members of Board of
Directors and one shall be the Investor Relations Department Executive. The majority of the members of Board of
Directors in the Committee shall not have executive functions. Investor Relations Department Executive must have the
“Capital Markets Activities Advanced Level” and “Corporate Governance Rating Expertise” certificates and must be
working full time in the Company.
6.1.3. Third parties specialized in certain areas who are not members of Board of Directors can also be appointed as
Committee members. The Committee Chairman shall be appointed among Independent Members of Board of Directors.
6.1.4. The Chief Executive Officer / General Manager shall not take office in the Committee.
6.1.5. The secretariat formalities of the Committee shall be performed by Investor Relations Department.
6.1.6. One more than half of the total members shall be required for Committee meetings and majority is required for
decisions.
6.1.7. The Committee shall convene every 3 (three) months as a principle and, if required, it shall convene at the
Company’s registered office following a call to be made by the Secretariat on behalf of the Committee Chairman. The
Committee chairman might reschedule the meeting date, hour and place provided that the Committee Members are
informed beforehand.
6.2. AUTHORITIES OF THE COMMITTEE
6.2.1. If required, the Committee shall start special inspections and appoint people specialized in their areas as
consultant for the purpose of ensuring assistance in such inspections.
6.2.2. If required, the Committee shall hold meetings with representatives of Company’s related parties and specialists,
including Company personnel or subsidiaries; and it shall seek external and professional consultancy service.
6.2.3. The Committee shall act according to its authorities and responsibilities and make recommendations to the Board
of Directors however the Board of Directors shall always have the final decision making responsibility.
7. ENFORCEMENT
529/2.d and came into force as of 30.05.2006.
8. EXECUTION
ASELSAN Corporate Governance Committee shall be responsible for executing the provisions listed on these directives.
9. CIRCULATION PLAN
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134
Profit Distribution Proposal
ASELSAN A.Ş. 2013 PROFIT DISTRIBUTION TABLE (TL)
Distribution under
the Capital Markets
Distribution under
Board Regulations
the Legal Records
Issued Capital
500.000.000
500.000.000
First Legal Reserve (According to Legal Records)
68.109.464,78
68.109.464,78
The information for the profit distribution in the case of privileges according to the Company Articles of Incorporation
Profit for the Period
238.081.489,00
79.566.382,34
Taxes Payable (-)
0
0
NET PROFIT FOR THE PERIOD (=)
238.081.489,00
79.566.382,34
Accumulated Loss (-)
0
0
First Legal Reserve (-)
3.978.319,12
3.978.319,12
NET DISTRIBUTABLE PROFIT FOR THE PERIOD (=)
234.103.169,88
75.588.063,22
Donations Made throughout the Year (+)
0
Net Distributable profit for the period, donations included in dividend
calculation
234.103.169,88
First Dividend to Shareholders
25.000.000
25.000.000
- Cash
25.000.000
25.000.000
- Non paid-up share
0
0
- Total
25.000.000
25.000.000
Dividends distributed to Preferred Shareholders
0
0
Dividends distributed to;
0
0
- Members of the Board of Directors
0
0
- Employees
0
0
- Others than Shareholders
0
0
Dividends distributed to Holders of Usufruct Right Certificates
0
0
Second Dividend to Shareholders
0
0
First Legal Reserve
0
0
Statutory Reserve
0
0
Special Reserve
0
0
EXTRAORDINARY RESERVE
209.103.169,88
50.588.063,22
Other resources to be distributed
0
0
As presented in the table above, out of the net profit for the period that is generated by our company from its 2013
activities;
•In accordance with Article 519/(1) of the Turkish Commercial Code, General Legal Reserves amounting to TL
3.978.319,12 is going to be allocated,
•Net distributable profit to the shareholders for the period, calculated in the framework of the profit distribution
regulations and decisions of the Capital Markets Board is proposed as: Gross profit, TL 25.000.000 (TL 0,05 per share
of TL 1 and 5% on the basis of the capital) (net profit TL 21.250.000 – TL 00,0425 per share of TL 1 and 4,25% on the
basis of the capital) as in the form of cash,
•The remaining profit is going to be allocated as Extraordinary Legal Reserves, and distribution of the dividends to the
shareholders to be started as of May 30, 2014.
Yours Faithfully,
Board of Directors
5/29/14 5:44 PM
135
Directory
www.aselsan.com.tr
Post Box:
P.O.Box 1, 06172,
Yenimahalle - Ankara, Turkey
Mehmet Akif Ersoy Mahallesi
296. Cadde No: 16,
06370 Yenimahalle - Ankara, Türkiye
Phone:+90 (312) 592 10 00
Fax :+90 (312) 354 13 02
+90 (312) 354 26 69
Akyurt Facilities
P.O.Box 30 Etlik, 06011, Ankara, Türkiye
Phone:+90 (312) 847 53 00
Fax :+90 (312) 847 53 20
[email protected]
Marketing
[email protected]
Human Recources
[email protected]
ASELSAN Encrypted Mobile Phone
5/29/14 5:44 PM
5/29/14 5:44 PM

Annual Report 2013

Transcription

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