(09.02.2017)

Prepared based on 2016 YE financial results

1

• INTRODUCTION

• VISION & MISSION • BRIEF HISTORY • SHAREHOLDER STRUCTURE • PRODCUTION PLANT

• EMPLOYEE PROFILE • PRODUCT RANGE • ALTAY PROJECT • R&D and TEST CENTRE

• FINANCIAL STATEMENTS & RATIOS • PRODUCTION-SALES- REVENUE-BACKLOG • CAPITAL EXPENDITURE • STOCK and DIVIDEND PERFORMANCE • MARKET CAPITALISATION

ABOUT US

FINANCIAL INDICATORS

LONG-TERM OBJECTIVES

• SUSTAINABLE GROWTH • GROWTH WITH PRODUCTS WHICH

LICENSE RIGHTS BELONG TO OTOKAR • GROWTH IN EXPORT MARKETS • SHAREHOLDER VALUE CREATION

Agenda

2

Introduction

A global company, intellectual property rights belong to itself and its products are in use on 5 continents and in more than 60 countries

Turkey’s the largest private and 100% domestically owned company in defense industry

Turkish Armed Forces’ leading supplier and exporter of land platforms

Turkey’s market leader in passenger bus segment with a capacity of 25 people and over for the last 7 years

ABOUT US 3

Vision

• Otokar’s vision is to preserve the local and national identity of its products by developing technologies in-house, and to provide continued satisfaction for its clients, employees, and shareholders with total excellence philosophy.

Mission

• Otokar’s primary mission is to design, manufacture and market commercial vehicles and various defence industry products with global competitive strength, all developed to meet customer expectations.

Vision&Mission

ABOUT US 4

Brief History

1963 1970s 1980s 1990s 2000s 2010s

Establishment Production of

buses under the license of Magirus-Deutz

Turkey’s first interciy bus The first Turkish

Armoured Vehicle production Partnering with

Koç Group

Production of 4x4 tactical vehicle under the license of Land Rover

Military armoured vehicles by own desing Turkey’s first

export of tactical armoured vehicle Sakarya

plant/factory

Merge with the İstanbul Fruehauf A.S. Production of

small and mid buses Turkey’s first

hybrid bus The prime

contractor of ALTAY Project

Production of City Buses Multi-wheeled

armoured tactical vehicle family Turkey’s first

electric bus Atlas Light Truck New armoured

tactical wheeled vehicle, URAL Tracked Armoured

Vehicle POYRAZ midibus

ABOUT US 5

Sustainable Growth

-

200

400

600

800

1.000

1.200

1.400

1.600

1.800

200220032004200520062007200820092010201120122013201420152016

Revenue Million TRY

LONG-TERM OBJECTIVES 6

Partnership Structure

*27% Listed

*3% Other

45%

*Other 30%

Ünver Holding

25%

ABOUT US 7

Production Plant

552,000 m2 plant, approximately 2300 employee Capacity of

2600 Land Vehicle

900 Tactical Armoured Vehicle

4600 Autobus + Minibus

1400 Trailer ve Semi-trailer

1600 Light Truck

Certificates

ISO 9001 Quality Standard ISO 14001 Environmental Standard ISO 10002 Customer Satisfaction Quality Standard ISO 27001 Information Security Management System AQAP 2110 Military Quality Assurance Certificate Facility Security Certificate with National and NATO Secrecy Degree ISO 3834-2 Quality Requirements for Fusion Welding of Metallic Materials

ABOUT US 8

Office Employees

674

Shop Floor Employees

1599

2273 Employee

Engineer 225

Other 449

674 Office Employees

Tank 249

Other

275

524 R&D Centre Personnel

Employee Profile

ABOUT US 9

Number of Employee

ABOUT US

0

500

1000

1500

2000

2500

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

10

Product Range

Models FRUEHAUF / OTOKAR

Models LAND ROVER DEFENDER / ARMOURED PERSONAL CARRIER / URAL / COBRA / COBRA II / KAYA / KAYA II / KALE / ARMA 6x6 / ARMA 8x8 / INTERNAL SECURITY VEHICLE / TULPAR / ALTAY

Models OTOKAR ATLAS

Public Transport

Defense Industry

Logistic Vehicles

Commercial Vehicles

Models KENT / DORUK / SULTAN / POYRAZ / M-2010 / CENTRO / NAVIGO / VECTIO / TERRITO / KENT ARTICULATED

Light Truck

ABOUT US 11

Public Transport Vehicles

Otokar, Turkey’s the most preferred bus brand for the seventh time!

About 30 thousand buses, carrying millions of passengers in more than 40 countries!

ABOUT US 12

Otokar Buses

A wide product range from intercity

transport to personnel and tourism transport

Special Products

Researches for

Alternative fuels

ABOUT US 13

KENT ARTICULATED

DORUK / VECTIO

KENT

POYRAZ

SULTAN / NAVIGO

TERRITO

POYRAZ

The new small bus with low operating costs and very economic fuel consumption, designed for service transport

ABOUT US 14

SULTAN / NAVIGO

• Turkey’s best-selling small bus

• Different models for intercity transport, service and tourism transport

ABOUT US 15

DORUK / VECTIO

• Turkey’s market leader in medium-sized buses

• “Grand Award” prize in Europe

• Different models for intercity transport, service and tourism transport

ABOUT US 16

TERRITO

The 12-meter bus developed for the European market

ABOUT US 17

KENT

• Turkey’s most preferred 12 m. intercity bus

• 2 Design Award in Europe and Turkey

ABOUT US 18

KENT ARTICULATED

Kent Articulated bus was launched at Busworld Exhibition, Belgium in 2015.

ABOUT US 19

Alternative Fueled Buses

2007 2009 2011 2012

DORUK Hibra

Turkey’s first hybrid bus

DORUK DG

Turkey’s first natural gas powered mid-sized

bus

KENT DG

12 m CNG bus

DORUK ELECTRA

Turkey’s first electric bus

ABOUT US 20

Logistic Vehicles

About 25 thousands of semi-trailer that provides transportation service in the roads of the world!

ABOUT US 21

Trailer

Van Type Trailer Curtainsider Trailers

-TIRLINER -EUROSLIDER -SPEEDSLIDER -MEGALINER -ECOTIR -ECOLINER

-ICELINER -TEXTILE CARRIER

-ADR CERTIFICATED TANKER -TRAILER AND TRUCK-TOP APPLICATIONS

Tanker Trailer

-CONTAINER CARRIER -PLATFORM TRAILER -ROLL CARRIER -TIPPER CHASIS

İnternal Logistic Tools

ABOUT US 22

Curtainsider Trailer

Customer-oriented solutions in the transportation of dry load

ABOUT US 23

Van Type Trailer

For 14 years, most commonly preferred refrigerated trailer in Turkey for transport of perishable goods in hygienic and safe condition

ABOUT US 24

Tanker

• Turkey’s first ADR certificated trailer

• Wide product range and proficiency

ABOUT US 25

Light Truck

ABOUT US 26

ATLAS

A light truck, with high payload capacity and low operating cost

ABOUT US 27

Defence Industry

More than 29.000 military vehicle serving in 5 continents and in more than 30 countries

ABOUT US

28

Land Systems

TWV

Tracked Vehicles

TWAV

Tactical Wheeled Vehicles

Land Rover Defender

TULPAR

APC URAL COBRA COBRA II KAYA KAYA II KALE ISV

4x4 6x6 8x8

Turret Systems

TAV MBT

ARMA 6X6

ARMA 8X8

ALTAY

MIZRAK UKKS KESKİN UKKS OPEN TURRETS INTERNAL SECURITY TURRET WEAPON STATIONS (MİLAN TOW) UCOK BOZOK BASOK

Land Vehicles from 3/4 ton to 60 tons

ABOUT US 29

APC (Armoured Personnel Carrier)

Actively in use in 12 countries including Turkey

ABOUT US 30

AKREP

The optimal solution on issues such as strategic areas and border control, convoy protection and patrol

Otokar’s armoured tactical wheeled vehicle which is successful on Internal Security Operations, low silhouetted and quick

ABOUT US 31

COBRA

Armoured tactical vehicle which has worldwide competitiveness with its unique design, mobility, survivability and superior protection

ABOUT US 32

COBRA II

The new member of COBRA family the most well-known vehicle of Otokar...

Large internal volume, high protection.

ABOUT US 33

URAL

Otokar’s new armoured tactical wheeled vehicle that is suitable for safety and internal security usage.

ABOUT US 34

KAYA Mine Resistant Vehicle

The mine resistant vehicle which provides maximum mine and ballistic protection in all types of terrain, offers great mobility

ABOUT US 35

KAYA II Personnel Carrier

The mine resistant personnel carrier vehicle that consists of single cabin with its monocoque body

ABOUT US 36

KALE Mine Resistant Vehicle

Mine resistant personnel carrier

ABOUT US 37

ARMA

ARMA is new generation modular multi-wheel configuration armoured vehicle with high level of ballistic and mine protection

ABOUT US 38

ARMA 6X6

Arma 6x6, with its large internal volume, amphibious capability and low silhouette

ABOUT US 39

ARMA 8x8

Armoured combat vehicle ARMA 8x8, provides high protection and large internal volume

ABOUT US 40

TULPAR

A new generation tracked armoured vehicle which ends Turkey’s dependence on foreign sources and its all intellectual property rights belong to OTOKAR

ABOUT US 41

INTERNAL SECURITY VEHICLE

The armoured tactical vehicle specifically designed and developed with the aim of internal security in cities

and living areas.

ABOUT US 42

Land Rover Defender

A worldwide brand in tactical vehicles.

ABOUT US 43

Otokar Turret Systems

• Since 1989, Otokar has been working on turret systems to meet the needs and demands of current and potential users in land systems with trained manpower and R&D investments.

• Otokar has nearly 27 years of experience and

expertise on the subjects of original design and integration of different turrets.

• Otokar’s 4x4, 6x6, 8x8 and tracked vehicles serve as ideal platforms for different types of turret.

ABOUT US 44

ALTAY Project

Otokar is the PRIME CONTRACTOR of Turkish Main Battle Tank Project ALTAY.

ABOUT US 45

ALTAY Project

The project continues in accordance with the planned timetable.

ABOUT US 46

R&D

Otokar’s R&D, establishment dates back to 1970’s, today, designing and manufacturing Turkey’s vehicle.

Otokar’s R&D works for products whose intellectual rights belong to itself, with the vision of having and dominating the technology.

ABOUT US 47

R&D Capabilities

CAD programs for product developments

The Prototype workshops and softwares

Computer-aided analysis and simulation softwares

Test-purpose setup and software

ABOUT US 48

Otokar Test Centres

Turkey’s the highest capacity hydraulic road simulator

Dinomometrel Air-conditioned Test Centre; Turkey’s first and only, one of the few facilities in Europe

Turkey’s the biggest and the world’s most modern Electromagnetic Compatibility Testing Centre

ABOUT US 49

Otokar Test Centres

One of the world’s most advanced and modern ballistic laboratories and mine testing equipments

ABOUT US 50

Balance Sheet

Total Assets (TRY) Total Liabilities&Shareholders Equity (TRY)

Current Assets 1.449.931.634999

5

S.T. Liabilities 1.066.338.910 Fixed Assets 334.336.008

L.T. Liabilities 474.970.640

Shareholders Equity 242.958.092

Total 1.784.267.642 Total 1.784.267.642

FINANCIAL INDICATORS

31.12.2016

51

TRY thousands (IFRS) 31.Dec.2016 31.Dec.2015

Net Sales 1.634.515 1.433.968

Cost of Sales (1.224.669) (1.063.026)

Gross Profit 409.845 370.941

Operating Costs (245.202) (231.281)

Operating Profit 164.643 139.660

Finacial Expenses (96.650) (53.300)

Profit Before Taxes 68.080 87.840

Taxes 1.646 (8.334)

Net Profit 69.726 79.506

Income Statement

FINANCIAL INDICATORS 52

0

20

40

60

80

100

120

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Net Profit Million TRY

Net Profit

FINANCIAL INDICATORS 53

Cash Flow Statement

TRY thousand (IFRS) 31.Dec.2016 31.Dec.2015

Cash and Cash Equivalants at the begining of the period 58.736 44.528

Net cash provided by operating activities 401.396 (81.232)

Net cash used in investing activities (76.629) (52.252)

Pre-financing cash flow 324.767 (133.484)

Net cash used in Financing Activities (346.295) 147.692

Net decrease/increase in Cash and Cash Equivalents (20.137) 14.208

Cash and cash equivalents at the end of the period 38.599 58.736

FINANCIAL INDICATORS 54

Working Capital

TRY thousands 31.Dec.2016 31.Dec.2015

Current Assets 1.449.932 1.019.693

S. T. Liabilities 1.066.339 784.890

Working Capital 383.593 234.803

FINANCIAL INDICATORS 55

TRY thousand

31.Dec.2016 31.Dec.2015

Cash and Equivalents

38.598 58.736

Trading Securities 0 0

Other 0 0

Total Financial Assets

38.598 58.736

TRY thousand

31.Dec.2016 31.Dec.2015

S.T. Bank Loans 4.672 105.983

L.T. Bank Loans 425.447 509.295

Total Financial Debts

430.119 615.278

TRY thousand 31.Dec.2016 31.Dec.2015

Net Financial Debts 391.521 556.542

Net Financial Debts

FINANCIAL INDICATORS 56

Financial Ratios 2016 2015

Current Ratio 1,36 1,30

Liquidity Ratio 0,90 0,75

Return On Equity 28,7% 32,4%

Return on Assets 3,9% 5,0%

Cur.Assets/Tot.Assets 81% 64%

Short Term Lia./Tot. Lia. 60% 49%

Tot.Lia./Tot.Assets 86% 85%

Margins 2016 2015

Gross Margins

25,1% 25,9%

Operating Margin

10,1% 9,7%

EBITDA Margin

12,9% 12,9%

Net Profit Margin

4,3% 5,5%

Financial Ratios And Margins

FINANCIAL INDICATORS 57

Margins

FINANCIAL INDICATORS 58

25,3% 25,9% 25,1%

9,9% 9,7% 10,1%

13,5% 12,9% 12,9%

5,9% 5,5%

4,3%

0,0%

5,0%

10,0%

15,0%

20,0%

25,0%

30,0%

35,0%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Margins

Gross Margin

Operating Margin

EBITDA Margin

Net Margin

Production Units

0

1.000

2.000

3.000

4.000

5.000

6.000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

FINANCIAL INDICATORS 59

Revenue Distribution

FINANCIAL INDICATORS

2016 TRY 1.634,5

Mio

DOMESTIC TRY 1.192,7 Mio

73%

EXPORT TRY 441,8 Mio

27%

COMMERCIAL TRY 384,1 Mio - 32%

DEFENCE TRY 512,1 Mio - 43%

OTHER TRY 296,5 Mio - 25%

COMMERCIAL TRY 259,8 Mio – 59%

DEFENCE TRY 161 Mio - 36%

OTHER TRY 21 Mio – 5%

60

DOMESTIC TRY 1.015 Mio

71%

EXPORT TRY 419 Mio

29%

COMMERCIAL TRY 470,8 Mio - 46%

DEFENCE TRY 214,6 Mio - 21%

OTHER TRY 329,6 Mio - 33%

COMMERCIAL TRY 178,4 Mio - 43%

DEFENCE TRY 188,7 Mio - 45%

OTHER TRY 51,9 Mio –12%

2015 TRY 1.434 Mio

DOMESTIC EXPORT

TOTAL BACKLOG EUR 103,7 Mio+ USD 16 Mio

COMMERCIAL

DEFENCE INDUSTRY

EUR 103,7 Mio

COMMERCIAL

DEFENCE INDUSTRY USD 16 Mio

Backlog

FINANCIAL INDICATORS 61

Capital Expenditures

FINANCIAL INDICATORS 62

0

5.000

10.000

15.000

20.000

25.000

30.000

2009 2010 2011 2012 2013 2014 2015 2016

TRY

Th

on

san

ds

Capital Expenditures

Stock Performance

FINANCIAL INDICATORS 63

-50%0%

50%100%150%200%250%300%350%400%450%

OTKAR %

BIST100%

-10%

0%

10%

20%

30%

40%

50%

60%

OTKAR %

BIST100%

Dividend

FINANCIAL INDICATORS 64

7.200

20.400 15.000

48.000

64.000

100.000

80.000

72.000

4%

5%

3%

8%

7%

8%

4%

3%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

0

20.000

40.000

60.000

80.000

100.000

2008 2009 2010 2011 2012 2013 2014 2015

TRY thousand

Dividend Dividend Yield

Market Capitalisation

FINANCIAL INDICATORS 65

0

500

1.000

1.500

2.000

2.500

Şub

at 1

2

May

ıs 1

2

Ağu

sto

s 1

2

Kas

ım 1

2

Şub

at 1

3

May

ıs 1

3

Ağu

sto

s 1

3

Kas

ım 1

3

Şub

at 1

4

May

ıs 1

4

Ağu

sto

s 1

4

Kas

ım 1

4

Şub

at 1

5

May

ıs 1

5

Ağu

sto

s 1

5

Kas

ım 1

5

Şub

at 1

6

May

ıs 1

6

Ağu

sto

s 1

6

Kas

ım 1

6

Şub

at 1

7

TRY million

Mcap--> TRY 2.458 mio

Growth With Products Which License Rights Belong to OTOKAR

The share of Otokar designed vehicle sales in turnover.

98%

Number of owned patents and industrial designs

238

LONG-TERM OBJECTIVES 66

Otokar Europe

Otokar Europe was established in 2011 in France, in order to support bus sales in Europe.

LONG-TERM OBJECTIVES 67

Growth in Export Markets

• Otokar branded vehicles in more than 60 countries, on 5 continents

• Sales and

service network spread over more than 200 destinations

LONG-TERM OBJECTIVES 68

Millon USD

Growth in Export Markets

LONG-TERM OBJECTIVES 69

0

20

40

60

80

100

120

140

160

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Shareholders Value Creation

LONG-TERM OBJECTIVES

• Continuously increase revenue to ensure high and sustainably dividend yield

• In the framework of our corporate governance and professional management principles, we aim to move further up our company's market value

70

Otokar Investor Relations

Doğan Seçkinler Finance & IR Manager +90 264 229 22 44 – 6300 dseckinler@otokar.com.tr Öktem Söylemez IR Officer +90 264 229 22 44 – 6316 osoylemez@otokar.com.tr

Please visit www.otokar.com.tr

Disclaimer: This presentation contains forward-looking statements that reflect the Company management’s current views with respect to certain future events. Although it is believed that the expectations reflected in these statements are reasonable, they may be affected by a variety of variables and changes in underlying assumptions that could cause actual results to differ materially.

Neither OTOKAR nor any of its directors, managers or employees nor any other person shall have any liability whatsoever for any loss arising from use of this presentation.

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