Aselsan Elektronik Sanayi ve Ticaret Anonim Sirketi : 2022-06 Earnings Release

2022

Earnings Release

August 11, 2022

ASELSAN COMPLETED THE FIRST HALF WITH STRONG GROWTH

ASELSAN's 2022 first half financial results announced. ASELSAN's 6 month turnover increased by 55% compared to the same period of the previous year and reached 10.8 billion TL. It continued its sustainable growth with its investments.

While the gross profit of the company increased by 33% compared to the first half of last year; Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) increased by 42% compared to the same period of the previous year and reached 2.7 billion TL. EBITDA margin was realized as 25%. ASELSAN's net profit increased by 50% compared to the same period of the previous year and reached 3.8 billion TL. The company's equity to assets ratio was 54%.

ASELSAN Chairman, President and CEO Prof. Dr. Haluk GÖRGÜN evaluated the company's first half financial results as follows: "With the awareness of our national responsibilities, we have left behind the first half of 2022, when we put our advanced technologies into the service of our country. We, as ASELSAN, continued our activities by growing steadily in this challenging period, when the world was faced with macroeconomic and geopolitical risks and global inflation created cost pressures around the world.

With the aim of leading technology at ASELSAN, we continue our basic research studies on groundbreaking technologies with an innovative perspective, in a wide area ranging from artificial intelligence to autonomy, from photonics to metamaterials, from biodefense to quantum technologies, in order to move our country and ASELSAN forward.

In line with the vision of our Presidency of Defense Industries, at ASELSAN, we also mobilize the power we derive from high-capacity human resources to develop products and systems and to own critical technologies. By making innovation and R&D the focal point of our activities in all business processes from production to marketing, from procurement to management, we achieve success in the national and international arena.

We Always Stand with Our Suppliers

In only the first half of 2022, we made a financial contribution to our suppliers by paying close to 10.9 billion TL. In addition, we successfully completed the nationalization of 106 products in this 6-month period. Thus, we have increased the number of products we have nationalized in the last 3 years to over 613 and ensured that a size close to 331 million USD remains in our country.

In addition, we gave information about the nationalization process with our suppliers from 20 different business lines at the 4th Defense Industry Meetings organized in cooperation with the Istanbul Chamber of Industry and SAHA Istanbul, which we attended. With the support we provide to our suppliers in terms of both financial and knowledge transfer, the production volumes of our suppliers will increase and the contribution to the country's economy will also increase.

We Are Aware of Our Game Changer Striking Power With Our Domestic and National Products

Our satellite communication system technologies, which we produce with our national engineering power, continue to play critical roles. This year, we, as ASELSAN, made an important contribution to TEKNOFEST, which was held in our sister country, Azerbaijan. At the Aviation, Space and Technology

Festival TEKNOFEST, where we participated with a total of 21 products and systems, our products, which we produced with domestic and national means, were exhibited at the ASELSAN stand and attracted great attention from many visitors. Bayraktar AKINCI TİHA, which performed flight demonstrations in TEKNOFEST Azerbaijan, successfully arrived in Azerbaijan after a long flight using our satellite communication systems. We will continue to achieve great success with the faith and support we receive from our nation.

We are the 49th Largest Defense Company in the World

"ASELSAN continued its success among the world defense industry giants (Defense News Top 100), to which it was included in the 97th place in 2008, by ranking 49th this year. Prof. Dr. Haluk GÖRGÜN; "We are the only Turkish company in the top 50 in the "Defense News Top 100" list. With the high technologies we have developed on behalf of our country, the successes we have achieved in both national and international platforms continue to increase."

We Stand with Humanity on Climate Issue

At the Economy and Climate Change Summit (EKO İKLİM) summit, where "climate change" and "green transformation" issues were discussed, we, as ASELSAN, explained our solutions and practices that we have produced for a sustainable world. We exhibited our solutions on renewable energy, electric transportation and smart cities that we developed locally and nationally.

In addition, ASELSAN, which aims to ensure the continuous development and sustainability of the management system performance with the leadership of the senior management and the participation of the employees in line with its occupational health and safety targets, won a silver award at the UK- based ROSPA Awards, which it participated for the first time this year.

We Continued to Support Our Young People to Gain Vision and Raise Qualified Workforce

We continue to work with all our strength for our future. We came together with the executives of Turkey's leading technology companies in the session titled "Turkey's Space Journey" of the Youth Informatics Festival that we participated in. In the session, we shared with young people ASELSAN's projects and vision in the field of space.

ASELSAN Vocational and Technical Anatolian High School, which was established to contribute to the training of qualified workforce in the defense industry, has become the choice of successful young people who want to be a part of the national technology move. Our school, which has an English preparatory class, accepted 0.44 students this year according to the results of the High School Entrance Exam. We will continue to walk together with our youth for both the country and their own future.

ASELSAN Chairman, President and CEO Prof. Dr. Haluk GÖRGÜN concluded his statements with these words: "At ASELSAN, which draws its strength from our nation, we will continue to work hard in 2022 to achieve new achievements and share them with you. I would like to thank our Presidency of Defense Industries and all our stakeholders, especially our Honorable President."

2021 Financial Highlights

(Million TL)

Balance Sheet Items	June'22	Dec'21	∆%
Current Assets	27.661	23.175	19
Non-Current Assets	25.968	23.238	12
Total Assets	53.629	46.413	16

(Million TL)

Balance Sheet Items	June'22	Dec'21	∆%
Liabilities	24.526	20.578	19
Equity	29.104	25.835	13
Liabilities & Equity	53.629	46.413	16

Income Statement Items	June'22	June'20	∆%
Revenue	10.841	6.975	55
Gross Profit	3.419	2.576	33
Gross Profit Margin	%31,5	%36,9	-
Operating Profit (EBIT)	2.437	1.706	43
Operating Profit Margin (EBIT)	%22,3	%24,3	-
EBITDA	2.705	1.901	42
EBITDA Margin	%25,0	%27,3	-
Net Profit	3.797	2.534	50
Net Profit Margin	%35,0	%36,3	-

• Revenues are 10.841 million TL and increased by 55% compared to the same period of the previous year.
• The newly signed contracts reached 489 million USD and the backlog is 7.9 billion USD.
• Total assets increased by 16% compared to the year-end and reached 53.629 million TL.
• EBITDA is 2.705 million TL and increased by 42% compared to the same period of the previous year.
• Gross profit margin was realized as 32%.
• Return on Assets (ROA) is 19% (December 2021: 18%).

	2022 Guidance
		2022 Guidance
Increase in Revenues (TL)		>25%
EBITDA Margin		>22%
CAPEX		5.000 Million TL

ASELSAN financial reports can be accessed through the link:

https://www.aselsan.com.tr/en/investor-relations/financial-data/financial-reports

ASELSAN investor presentations can be accessed through the link:

https://www.aselsan.com.tr/en/investor-relations/financial-data/investor-

presentations

CONTACT

Address

ASELSAN Elektronik Sanayi ve Ticaret A.Ş. Mehmet Akif Ersoy Mah. İstiklal Marşı No:16 06200 Yenimahalle, Ankara

Phone: [phone]

E-Mail [e-mail]

FORWARD LOOKING STATEMENTS

These materials contain statements about future events and expectations that are forward-looking statements. Any statement in these materials that is not a statement of historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Except to the extent required by law, we assume no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements.

This release does not constitute an offer or invitation to sell, or any solicitation of any offer to subscribe for or purchase any securities and nothing contained herein shall form the basis of any contract or commitment whatsoever. No reliance may be placed for any purposes whatsoever on the information contained in this release or on its completeness, accuracy or fairness. None of the Company nor any of its shareholders, directors, officers or employees nor any other person accepts any liability whatsoever for any loss howsoever arising from any use of this release or its contents or otherwise arising in connection therewith.