2019 ASELSAN Annual Report 7443

PROVEN
TECHNOLOGY
2019 Annual Report
Please scan the QR code to view the
ASELSAN shares are traded in Borsa Istanbul under ticker symbol ASELS.
PDF version of this annual report.
CONTENTS
ASELSAN AT A GLANCE
ASELSAN AT A GLANCE
2 Vision-Mission
3 Ethical and Core Values
5 ASELSAN Shareholding Structure and Financial Position
6 Local Affiliates
8 Global Affiliates
10 Our Facilities
11 Organizational Structure
12 Main Financial Indicators
14 ASELSAN Human Resources
14 R&D Activities
15 Collaboration with Universities
MANAGEMENT
15 Collaboration with Domestic Suppliers
MANAGEMENT
16 Message from President,Chairman and CEO

18 Members of the Board of Directors
20 Corporate Governance
22 Members of the Executive Board
IN 2019
IN 2019
24 Highlights of 2019
32 Learning and Organizational Development
34 Human Resources Management at ASELSAN
38 Technology and Strategy Management
44 ASELSAN Research Center
50 The ASELSAN Academy
52 Business Development and Marketing Activities
FILEDS OF ACTIVITY
FILEDS OF ACTIVITY
54 Communications and Information Technologies Business Sector

70 Defence System Technologies Business Sector
86 Microelectronics, Guidance and Electro-Optics Vice Presidency
102 Radar and Electronic Warfare Systems Business Sector
118 Transportation, Security, Energy, Automation and Healthcare Systems
Business Sector
FINANCIAL INFORMATION
136 Consolidated Statement of Financial Position

139 Consolidated Statement of Profit or Loss and Other Comprehensive Income
140 Consolidated Other Comprehensive Income Statement
141 Consolidated Statement of Changes in Equity
142 Consolidated Statement of Cash Flow
ASELSAN 2019 Annual Report 1

VISION
To be a reliable, competitively preferred, environment-friendly and human conscious technology firm

which preserves its sustainable growth in the global market via the values created for stakeholders, as
well as serving its establishment purposes.
MISSION
By focusing primarily on the needs of the Turkish Armed Forces; to provide high-value-added, innovative
and reliable products and solutions to both local and foreign customers in the fields of electronic
technologies and system integration; continuing activities in line with global targets as well as increasing
brand awareness and contributing to technological independence of Turkey.
2 ASELSAN 2019 Annual Report

ETHICAL AND CORE VALUES
• Togetherness
• Excellence
ASELSAN AT A GLANCE
• Innovation
• Evolution
• Trust

ASELSAN SHAREHOLDING STRUCTURE
OUR SHAREHOLDERS (%)
TURKISH ARMED FORCES FOUNDATION (TAFF)
74.20
25.80%
of ASELSAN shares are listed on
Borsa Istanbul.
BIST
25.80
OUR SHAREHOLDERS SHARE AMOUNT (TL) SHARE (%)
TAFF 845,825,624.46 74.20
Quoted on the BIST 294,174,375.54 25.80
Total 1,140,000,0000 100.00

ASELSAN’S FINANCIAL POSITION
SALES (%)
ASELSAN AT A GLANCE
TURKISH ARMED FORCES
62
TOTAL SALES
13,013 MILLION TL
EXPORT
12 PUBLIC AND PRIVATE

INSTITUTIONS
26
ASELSAN REALIZED 62% OF ITS TOTAL SALES A TOTAL OF USD 3 BILLION 43 MILLION OF
OF TL 13 BILLION 13 MILLION TO THE TURKISH NEW CONTRACTS/ORDERS WERE SIGNED IN
ARMED FORCES, 26% OF ITS SALES TO PRIVATE 2019, WHERE THE BACKLOG OF ASELSAN IS
ORGANIZATIONS OR OTHER CORPORATE USD 9.7 BILLION.
CUSTOMERS, AND WITH 12% OF ITS EXPORTS.

LOCAL AFFILIATES
MICROELECTRONICS R&D DESIGN AND TÜYAR MICROELECTRONICS INDUSTRY

TRADING LTD. CO AND TRADE INC.
İstanbul Gebze
The company was established to The company was established in
design and develop integrated circuits Kocaeli, Gebze in 2017 in order to
and electronic systems in Istanbul, perform activities related to micro
ASELSAN became a partner in and nano dimensional devices that
MICROELECTRONICS in 2010 with an contain semiconductors and similar
85% stake. technological materials. ASELSAN
holds a 51% stake in the company.
ASELSAN KONYA WEAPON SYSTEMS INC.

Konya
“ASELSAN Konya Weapon Systems
Inc.” was established in order to carry
out research, design, development
and engineering activities for defence
industry products, especially for
weapons and weapon systems, to
make production, testing, assembly
and integration, sales and marketing,
importing and exporting of these
products. The company also aims to
provide training, maintenance and after
sales services, and carry out all kinds
of commercial and industrial activities
related to these issues. 51% of the new
company belongs to ASELSAN, while
49% belongs to Konya Weapon Systems
Inc. The company is established on
November 12, 2018.
ASELSANNET ELECTRONIC AND TEKNOHAB INC. ASELSAN BİLKENT MICRO NANO

COMMUNICATION SYSTEMS INDUSTRY, TRADE, Ankara TECHNOLOGIES INDUSTRY AND TRADE INC.
CONSTRUCTION AND CONTRACTING LTD. CO. Teknohab Inc. was established in Ankara Ankara
Ankara in 2018 in order to create investment The company was established in Bilkent,
The company was established in Ankara opportunities in technology intensive areas, Ankara in 2014 to carry out research and
in 2004 to meet the electronic and to provide job opportunities to researchers development activities for the applications
communication device requirements of and skilled people, to help technology of all types of semiconductors and
civilian institutions and organizations. transfers and to facilitate foreign capital similar technological materials, and to
Since 2009, it has also added turn-key and to enter our country that will enable high manufacture and sell micro and nano
installation work for communication system technology. 30% of the new company dimensional devices that contain these
infrastructure among its activities. ASELSAN belongs to ASELSAN A.Ş.. materials. ASELSAN owns 50% of the
is the company’s 100% shareholder. company’s capital.
ULAK INC.
ROKETSAN ROCKET INDUSTRY AND TRADE INC. Ankara BITES INC.
Ankara The company was establised in Ankara Ankara
Roketsan was established in Ankara in 1988 in 2017 in order to carry out R&D and The company was established to operate
to manufacture all kinds of missiles, rockets, engineering activities of mobile and mainly in the fields of augmented reality,
rocket launchers and rocket fuel and their broadband communication systems used artificial intelligence, simulation software,
engines, warheads and other components, by commercial network operators, to research, development, design and
and also to manufacture, market and sell all manufacture, test, install and integrate engineering in Ankara. ASELSAN owns
kinds of military and civilian products and such systems and spare parts, to sell and 51% of the company’s capital since 2019.
their parts where a high level and sensitive to market, to import and export, to provide
technology is required. ASELSAN holds a training, maintenance and support services.
14.897% stake in the company. ASELSAN owns 51% of the company’s capital
since 2018.

ASELSAN PRECISION EHSIM INC. ASELSAN GLOBAL INC.
OPTICS INDUSTRY AND Ankara Ankara
The company was established to operate The company titled “ASELSAN Global
ASELSAN AT A GLANCE
TRADE INC.
Sivas mainly in the fields of Electronic Warfare Dış Ticaret ve Pazarlama A.Ş.” was
The company was and Tactical Command Control Systems established in order to carry out import,
established in Sivas in Ankara. ASELSAN owns 50% of the export and marketing activities of all
in 2014 in order to company’s capital since 2019. kinds of civil and military electronic
carry out research and products and systems. 100% of the
development studies company belongs to ASELSAN A.Ş.
for optical, optical set TR EDUCATION AND TECHNOLOGY INC.
and optical devices for Ankara
all types of ultraviolet, The company operates in realizing human
visible and near resource studies, giving consulting,
infrared bands, and to coaching and accreditation services and
manufacture and sell operating in education, teaching, culture,
such optical elements. art, sport, exhibition organizations and
ASELSAN holds a 50% digital marketing activities at all levels.
stake in the company. ASELSAN owns 50% of the company’s
capital since 2019.
ASPİLSAN ENERGY INDUSTRY AND TRADE

INC.
Kayseri
Aspilsan was originally established in
the Kayseri Organized Industrial Zone
on 21 May 1981 to meet the basic
requirements of the Turkish Armed
Forces for rechargeable nickel cadmium
batteries. Today, the company produces
all kinds of civil and military back-hand
radios, combat tools and equipment,
turnkey batteries for aircraft and
helicopters. ASELSAN holds a 1% stake
in the company.
LOCAL SUBSIDIARIES, AFFILIATES AND MARKETABLE SECURITIES

LOCAL SUBSIDIARIES SHARE AMOUNT ASELSAN’S SHARE (%)
ASELSANNET LTD. CO. 15,000,000 Turkish Lira 100.00
ASELSAN GLOBAL INC. 50,000 Turkish Lira 100.00
MICROELECTRONICS LTD. CO 1,700,000 Turkish Lira 85.00
TÜYAR MICROELECTRONICS INC. 8,905,875 Turkish Lira 51.00
ASELSAN KONYA WEAPON SYSTEMS INC. 44,472,000 Turkish Lira 51.00
ULAK INC. 11,730,000 Turkish Lira 51.00
BİTES INC. 127,500 Turkish Lira 51.00
ASELSAN Precision Optics Inc. 6,500,000 Turkish Lira 50.00
EHSİM INC. 125,000 Turkish Lira 50.00
TR EDUCATION AND TECHNOLOGY INC. 1,000,000 Turkish Lira 50.00
ASELSAN BILKENT MICRO NANO INC. 9,000,000 Turkish Lira 50.00
TEKNOHAB INC. 3,000,000 Turkish Lira 30.00
ROKETSAN INC. 21,906,223 Turkish Lira 14.897
ASPİLSAN ENERGY INC. 812,400 Turkish Lira 1.00

GLOBAL AFFILIATES
ASELSAN MIDDLE EAST PRIVATE ASELSAN BAKU COMPANY

SHAREHOLDING COMPANY LIMITED Baku-Azerbaijan
(AME) Established in 1998 to carry out
Amman-Jordan the promotion/marketing and
The company was established sales activities of military and
in 2012 with ASELSAN holding a civil communication devices, the
49% stake in the company and the company is a 100% participation of
KADDB Investment Group (KIG) ASELSAN.
holding a 51% stake. The company is
engaged in the design, production,
development and marketing
activities of night vision and thermal
imaging devices to meet the
requirements of the Jordanian Armed
Forces.
GLOBAL SUBSIDIARIES, AFFILIATES, BRANCHES AND OFFICES

GLOBAL SUBSIDIARIES SHARE AMOUNT SHARE (%)
ASELSAN Baku Company 1,601,978 Azerbaycan Manatı 100.00
ASELSAN Malaysia Sdn. Bhd. 100 Malezya Ringiti 100.00
SADEC LLC. (Saudi Defence Electronics ASELSAN EXTERNAL PROFIT
11,250,000 S. Arabistan Riyali 50.00
Company) COMPANY-ASELSAN SOUTH
ASELSAN Middle East PSC. Ltd. 1,225,000 Ürdün Dinarı 49.00 AFRICA (ASA)
Pretoria-South Africa Republic
IGG ASELSAN Integrated Systems LLC. 9,800,000 BAE Dirhemi 49.00
The company was established in
Kazakhstan ASELSAN Engineering LLP. 3,464,300,000 Kazakistan Tengesi 49.00 2011 to design optical systems
and to operate in the promotion
BARQ QSTP LLC. 480,000 Katar Riyali 48.00
and marketing of ASELSAN
products in South Africa and
neighboring countries.
BRANCHES
ASELSAN South Africa (ASA)
ASELSAN Macedonia
OFFICES
ASELSAN Indonesia
ASELSAN Philippines

THE ASELSAN KAZAKHSTAN ASELSAN ENGINEERING LLP-KAE
MACEDONIA BRANCH Astana-Kazakhstan
The company was established in 2011 with ASELSAN holding a 49% stake in
ASELSAN AT A GLANCE
Skopje-Macedonia
The ASELSAN Macedonia the company, the Presidency of Defence Industries (PDI) holding a 1% stake
Branch, which was and Kazakhstan Engineering holding a 50% stake. The company is engaged in
established at the end of the production, development and maintenance-repair activities for electronic
2014, within the scope devices and systems to meet military and civil requirements in Kazakhstan.
of the Macedonian
Corridor-10 Highway
Toll Collection System
project, operates to fulfill
the local obligations BARQ-QATAR
connected to the project. Doha-Qatar
The company was established in 2018, in order to operate with
command and control systems, thermal and night vision camera,
crypto, remote-controlled warfare systems. 48% of the new company
belongs to ASELSAN, while 51% belongs to BARZAN, and 1% belongs
to SSTEK.
IGG ASELSAN INTEGRATED SYSTEMS LLC.

Abu Dhabi-UAE
The company was established in 2011, with ASELSAN holding
a 49% stake in the company and IGG holding a 51% stake. It is
engaged in the production, testing and integration of ASELSAN
products in the United Arab Emirates (UAE) and their sale in Gulf
countries, primarily in the UAE, and to provide technical support
after their sale.
ASELSAN PHILIPPINES
OFFICE
SAUDI DEFENCE ASELSAN

ELECTRONICS COMPANY LLC. INDONESIA
(SADEC) OFFICE
Riyadh-Saudi Arabia
SADEC LLC was established
in 2016 with a 50%-50%
partnership between ASELSAN MALAYSIA SDN. BHD.
ASELSAN and TAQNIA Kuala Lumpur-Malaysia
DST to carry out the The ASELSAN Malaysia Sdn. Bhd. Company,
production, development a wholly owned subsidiary of ASELSAN, was
and maintenance repair, established to carry out operations with regard
of electronic devices and to remote control weapon systems.
systems to meet Saudi
Arabia’s requirements for
radar, electronic warfare and
electro-optical systems.

OUR FACILITIES
MACUNKÖY FACILITY
The Macunköy Facility was established
over a total area of 186,000 m2 of
which 110,000 m2 is closed. ASELSAN
Macunköy Facility is home to the CEO,
Communications and Information
Technologies Business Sector and
Defence System Technologies Business
Sector and Transportation, Security,
Energy, Automation and Healthcare
Systems Business Sector.
AKYURT FACILITY
The Akyurt Facility was established
on a total area of 231,000 m2 of
which 54,000 m2 is closed. The
Microelectronics Guidance and Electro-
Optic Business Sector is located in the
ASELSAN Akyurt.
GÖLBAŞI FACILITY
The Facility was established in
Gölbaşı district of Ankara, and houses
production plants for radar and
electronic warfare systems for land, air,
sea, space and unmanned platforms.
This Facility was established on a total
area of 350,000 m2 of which 75,000 m2
is closed.

ORGANIZATIONAL STRUCTURE
BOARD OF DIRECTORS
ASELSAN AT A GLANCE
Planning & Coordination Office
Internal Audit
of the Board of Directors
CEO
Cabinet to the CEO Legal Affairs
Financial Management Corporate Management Vice

Vice Presidency Presidency
Technology & Strategy Business Development &

Management Vice Presidency Marketing Vice Presidency
Transportation,
Communications Microelectronics,
Radar and Electronic Defence System Security, Energy,
and Information Guidance and
Warfare Systems Vice Technologies Vice Automation and
Technologies Vice Electro-Optics Vice
Presidency Presidency Healthcare Systems
Presidency Presidency
Vice Presidency

MAIN FINANCIAL INDICATORS
BACKLOG NET SALES SALES PER EMPLOYEE

(USD billion) (TL million) (TL thousand)
2018
2018
2018
9.1 9,009 1,582
2019
2019
2019
9.7 13,013 1,914
NET CASH PROVIDED BY

TOTAL ASSETS R&D EXPENSES OPERATIONS
(TL million) (TL million) (TL million)
2018
2018
2018
19,474 2,163 272
2019
2019
2019
25,633 2,975 851
EBITDA MARGIN EBITDA NET CASH

(%) (TL million) (TL million)
2018
2018
2018
21 1,896 2,330
2019
2019
2019
22 2,854 1,281

IN 2019
ASELSAN AT A GLANCE
BACKLOG GROWTH SALES GROWTH
(On USD basis)
6% 44%
EQUITY/ASSETS EBITDA GROWTH
53% 51%
SUMMARY BALANCE SHEET (TL million) 2018 2019
Total Assets 19,474 25,633
Tangible Assets 1,336 1,574
Intangible Assets 1,082 1,277
Total Equity 10,177 13,569
SUMMARY INCOME STATEMENT (TL million) 2018 2019
Net Sales 9,009 13,013
EBITDA 1,896 2,854
Net Profit for the Year 2,319 3,353
MAIN INDICATORS 2018 2019
R&D Expenses (TL million) 2,163 2,975
Sales per employee (TL thousand) 1,582 1,914
EDITDA Margin (%) 21 22
Net Cash Provided by Operations (TL million) 272 851
Cash and Cash Equivalents (TL million) 3,116 3,514

ASELSAN HUMAN RESOURCES
NUMBER OF PERSONNEL EDUCATIONAL BACKGROUND (%)
7,610
Ph. D.
3
ASELSAN recruited over 1,500 new
employees in order to fulfill its increasing
responsibilities in the best way possible,
Postgraduate
with the awareness of the critical position
27
it has in our country’s defence industry.
Each of our employees is selected
among highly qualified people and
Bachelor’s
Degree
experts, and these qualifications are
39
being supported through trainings and
development opportunities.
Others
31
R&D ACTIVITIES
Total R&D Expenditure (TL million)
2,975
ASELSAN never compromised from its target of gaining
national technology, which is its main strategy since
its establishment. The Company constantly upgraded
its R&D capabilities and developed unique products
under the consciousness of difficulties that depending
abroad will bring during periods when national interests
are at the forefront. Besides the defence technologies,
its main field of activity, ASELSAN continued to grow
its R&D activities in the framework of national goals, in
other areas such as energy, transportation, Healthcare
systems, and next generation cellular communication.

COLLABORATION WITH UNIVERSITIES
NUMBER OF PROJECTS COLLABORATION VALUE OF PROJECTS (USD MILLION)
ASELSAN AT A GLANCE
132 37 6.1
Number of projects conducted with ASELSAN collaborated with 31 Value of projects assigned to the
universities in 2019 Turkish universities and 6 global universities reached USD 6.1 million in 2019.
universities in 2019.
COLLABORATION WITH DOMESTIC SUPPLIERS
PAYMENT (TL BILLION) NUMBER OF DOMESTIC FIRMS TOTAL BACKLOG (TL billion)
5.4 3,100 5.3

TL 5.4 billion was paid to domestic The number of domestic subcontractors, SMEs and domestic sub-contractors’
subcontractors for tasks carried out in 2,500 of which are SMEs. total backlog
2019.
TOTAL OPEN ORDER

(TL BILLION)
9.5
Total open order price in domestic firms

MESSAGE FROM CHAIRMAN, PRESIDENT AND CEO
As it has every year in its history, ASELSAN once again We unwaveringly continue our work with the goal of
notched up significant successes in 2019. However, in meeting the needs of our security forces with national
addition to these achievements, within the framework of resources and becoming a reliable business partner
the “Corporate Transformation” theme which we set for at a global level. ASELSAN’s activities are not limited
2019, we have striven to create a precious, large family to the defence industry; the Company also continues
atmosphere by bringing the opinions and suggestions its domestication work in civilian fields such as
of our employees to the core of our activities, identifying transportation, security, energy and health. ASELSAN’s
areas where transformation is needed, including and most effective strength in its field of activity, which spans
partnering everyone into the transformation process such a wide range of areas, is its competent human
and by joining forces together to achieve the best. In assets, which we have built up over 45 years, as well its
this process, the meaning that our ASELSAN carries for suppliers which number more than 5,000. In 2019, we
the Turkish nation became our most important common continued to support all of the subcontractors which we
denominator. The ASELSAN brand expressed confidence worked with, small and large, and shared our financial
for also many countries that prefer our products and means and our R&D capacity with them. I have complete
systems. faith in our ability to notch up new achievements with the
uninterrupted efforts of our stakeholders in 2020.
ASELSAN’S growth trend in its turnover continued to gain
pace in 2019. ASELSAN’s turnover grew by 44% compared Our efforts to keep the “Back to Turkey Project”, which
to the previous year to exceed TL 13 billion. Export we attach great importance to, and which is maintained
deliveries increased by 50% compared to the previous to regain our country’s qualified manpower, continued
year to reach a record high of USD 330 million. throughout the year. In this context, I am very pleased
to note that last year, many of our talented people who
ASELSAN’S development in profitability indicators also had been working abroad returned home and joined our
exceeded the growth in turnover in 2019. Earnings before family. We will continue our work on the Project with the
interest, taxes, depreciation, and amortization (EBITDA) same determination and desire also in 2020.
increased by 51% compared to the previous year to reach
TL 2.9 billion with the EBITDA margin reaching 21.9%, For 2020, we have added two different themes to the
exceeding the 19-21% range which the company had route of the corporate transformation process which
forecasted for the end of the year. The company’s net we launched last year, with the same motivation and
profit also increased by 45% compared to last year to determination and which we are carrying it further. In this
stand at TL 3.4 billion. context, we have decided to carry out our work in 2020
under the Value Oriented Leadership and Innovation
Thanks to its effective cash and credit management Oriented Efficiency themes. Within the framework of
carried out throughout 2019, ASELSAN closed the year our thinking and evolving organizational structure, all
with a net cash position of TL 1.3 billion. The company’s projects planned to be realized during the year, including
year-end cash on hand also broke a historic record to the “Back to Turkey Project”, will be implemented with the
reach TL 3.5 billion. ASELSAN continued to add new theme of Innovation Oriented Efficiency.
products to its product range in 2019 and receive new
orders, with USD 3 billion of orders received in 2019 and With its understanding of Value Oriented Leadership,
the total backlog of orders to USD 9.7 billion. with the belief that the necessity of being a big family
is made possible by sharing the same values, rather
We have left behind a year marked by intensified than living together, and with a conviction that each
deliveries and collections in the last months of the year, ASELSAN employee is a value leader, we will focus on
while we chalked up a number of impressive operational embracing, internalizing, and adhering to our values
and financial achievements. ASELSAN demonstrated in all circumstances. We will focus on ensuring that our
the results of its work both at home and abroad with its understanding of Value Oriented Leadership is the most
record turnover and profitability, while our equity, which important reference for the decisions we will take.
reached TL 13.5 billion, accounted for 53% of our balance
sheet at the end of 2019, as the clearest indicator of our With its Innovation Oriented Efficiency approach, for
strong financial structure. ASELSAN’s exports also reached sustainable and competitive development, we will focus
new highs in 2019. Having stepped up its activity in on simplifying our processes, business models and the
international markets, ASELSAN is progressing confidently systems we establish and making them agile, lean and
in its transformation process to become a global defence effective through innovative applications, rather than
player with a total of 26 subsidiaries, 11 of which are limiting our resources.
abroad, as well as branches.
On behalf of myself and the Board of Directors, I would like
We trust that the growth trend in our country’s economy to thank our stakeholders, managers and employees who
will gather momentum and continue in 2020. In this have supported in this technology journey, and I extend
respect, we anticipate that ASELSAN’s turnover will my sincerest respects.
increase by 40-50% next year. We believe that the positive
impact of both our organizational work and the efficiency
practices we have implemented will be clearly reflected to
profitability in 2020.

BY VIRTUE OF BEING THE OLDEST AND LARGEST COMPANY IN THE TURKISH DEFENCE INDUSTRY, ASELSAN
WILL CONTINUE TO WORK WITH LARGE SCALE ORDERS AND GROW IN THE COMING PERIOD, AND WILL
REMAIN TURKEY’S LARGEST R&D COMPANY. ASELSAN FULFILLS ALL OF ITS OBLIGATIONS AS A PUBLIC
COMPANY AND CAREFULLY ANNOUNCES ITS CONTRACTED WORK AND ALL OTHER MATERIAL EVENT
DILIGENTLY WITHOUT COMPROMISING THE PRINCIPLE OF TRANSPARENCY.
MANAGEMENT
PROF. DR. HALUK GÖRGÜN

Chairman, President and CEO

MEMBERS OF THE BOARD OF DIRECTORS

Chairman of the Board of Directors (Managing Member) and CEO
Prof. Dr. Haluk Görgün completed his undergraduate and graduate education in Electrical Engineering Department of Yıldız
Technical University and his Ph.D. in Rensselaer Polytechnic Institute in New York, USA in 2003. After completing his Ph.D. studies,
he engaged in scientific studies at the University of Connecticut between 2004-2005. He became an associate professor in 2008
and became a professor in 2013 at Yıldız Technical University, where he served from 2005-2008 as an assistant professor. Between
2014 and 2018, he served as the Rector at Gebze Technical University where he made significant contributions in establishment
phase. He currently is the Chairman of the Board of Trustees and Board of Directors of the Gebze Technical Education and Research
Foundation. Prof. Dr. Haluk GÖRGÜN was elected as the Associate Member of Turkey Academy of Sciences in 2013 and also served
as a member of the Board of Directors in the Informatics Valley. Having served in various committees and boards at TÜBİTAK and
YÖK, Prof. GÖRGÜN owns many national and international articles / memorandums besides publishing editorship and projects.
Additionally he holds a seat at the Board of Trustees of Ostim technical University and Yıldız Technical University. Prof. Dr. Haluk
GÖRGÜN was elected as member of the Board of Directors of ASELSAN in the General Assembly on 15 March 2017. As per the
resolution taken at the Board of Directors meeting dated 17 April 2018, Prof. GÖRGÜN was appointed as ASELSAN General Manager
as of 27 April 2018, in addition to his position as Chairman of the Board of Directors.
MUSTAFA MURAT ŞEKER

Vice Chairman of the Board of Directors (Managing Member)
He graduated from Middle East Technical University, Electrical and Electronic Engineering Department in 1992 and began his
business life at Undersecretariat for Defence Industries in the same year. In 2011 he was appointed as the Head of Naval Platforms
Department, where major and comprehensive projects like New Type Submarine, National Corvette (MILGEM), Landing Platform
Dock (LPD) and TF-2000were executed under his supervision. In 2014 he was assigned as the Head of Electronic Warfare and Radar
Systems Department and during his duty, he coordinated the management of more than fifty radar and electronic warfare projects
including the Early Warning Radar and Stand-off Jammer Projects. Mustafa Murat ŞEKER serves as the Deputy Undersecretary since
June 2015 and was elected as a Member of Board of Directors with the resolution of Board of Directors on 23 May 2013. He also acted
as the Chairman of the Board between March 2015–March 2017. Mr. Şeker has been serving as the Vice Chairman of ASELSAN since
15 March 2017.
PROF. DR. MEHMET ARIK

Independent Member of the Board of Directors
He completed his undergraduate education at Istanbul Technical University, Department of Mechanical Engineering (1991). He
started his graduate studies at Middle East Technical University, Department of Mechanical Engineering and completed in the
Department of Mechanical Engineering at Miami University (Miami, USA). During his PhD studies at the Department of Mechanical
Engineering of the University of Minnesota (Minneapolis, USA) in 2011, he worked on heat transfer in electronics, three-dimensional
electronic packaging and MEMS technologies. He started to work at General Electric Global Research Center in 2000. In 2011, he
resigned from his position at GE and joined Özyeğin University Faculty of Mechanical Engineering. He owns over 120 granted and
pending patents as well as more than 200 international scientific journal and conference articles, and presentations. Prof. Dr. Mehmet
ARIK serves as Independent Member of Board of Directors since his appointment to the position at the Ordinary General Assembly
held on 2 April 2018.
PROF. DR. ERCÜMEND ARVAS

He completed his undergraduate and postgraduate programs in Middle East Technical University Electrical Engineering Department
and doctoral program at Syracuse University in New York, United States. He continued his academic career in Syracuse University
as of 1988 and worked as a professor at the same university in between the years 1994-2014. He served as a consultant at various
institutions like Air Force Office of Scientific Research, Digital Equipment Co., Philips Broadband, RIT Research Corp, Syracuse
Research Corp, ANAREN Microwaves Inc., General Electric Co and TUBİTAK. Currently working at Medipol University Electrical
Engineering Department, Prof. Dr. Ercümend ARVAS was assigned as an Independent Member of Board of Directors at the Ordinary
General Assembly Meeting held on 31 March 2016.
MEHMET FATİH KACIR

Member of the Board of Directors
He completed his bachelor’s degree at Boğaziçi University at Industrial Engineering department with the honors degree in 2008.
After graduation, he has been active in companies in simulation software and hardware, virtual reality applications, digital outdoor
advertising and food sectors where he was a founder and manager. Mr. KACIR is among the founders of Turkey Team Foundation
Technologies (T3 Foundation) where he is still serving as the Chairman at Board of Directors. He was the Pioneer in the establishment
of Deneyap Techonology workshops in T3 Foundation, in the Technology Stars Program for gifted students, in science centers and
Enterprise Centers and in the Teknofest İstanbul, which is Turkey’s first Aviation Space and Technology Festival. In 2018, he was
appointed as a member of the Scientific Committee of the Scientific and Technological Research Council of Turkey (TÜBİTAK). KACIR
was appointed as the Deputy Minister of Industry and Technology by the President’s decision published on the Official Gazette dated
31 July 2018 and numbered 30495 and is responsible from National Technology Thrust and Strategic Transformation activities at the
Ministry. He was elected as a member of the Board of Directors at ASELSAN Ordinary General Assembly Meeting held on 26 April
2019.

MANAGEMENT
ALPASLAN KAVAKLIOĞLU
He has Bachelor’s degree from Ankara University Faculty of Political Science Department of Business Administration. He continued his
education with long term trainigs in different disciplines and countries; language and public administration education in England, disaster
management, regional development and re-structuring education in Japan and society development education in Taiwan.
He served as district governor and deputy governor in several towns and cities of Turkey. He has worked as Head of Department at the
Republic of Turkey, Ministry of Interior and as a Legal Consultant and as Vice President in the Republic of Turkey, Prime Ministry Turkish
Emergency Management Department. He completed National Security Academy. He has served as the President of the Republic of Turkey,
Prime Ministry Security Affairs. He was elected as a Member of Parliament from Niğde for 24th term Mr. KAVAKLIOĞLU served as Security
and Intelligence Committee Chairman, Member of Internal Affairs (spokesman), National Defence Commission Member (spokesman),
Turkey - Japan Parliamentary Friendship Group Head, member of Central InterParliamentary Union of Turkish Group. He is still a member
of the Board of Directors of Parliamentarians Union. Mr. KAVAKLIOĞLU was appointed as the Deputy Minister of the Republic of Turkey,
Ministry of Defence with the decision of the Presidency dated 9 August 2018 and numbered 2018/91 and he was elected as a Member of
the Board of Directors at ASELSAN Ordinary General Assembly Meeting held on 26 April 2019.
SALİH KUL
Member of The Board Of Directors
In 1984, he graduated from the Turkish Military Academy - Electrical & Electronic Engineering as a Communications Lieutenant.
Following several local and international responsibilities, Mr. KUL worked as commander of Army Regional Combat System Battalion
and Commander of TASMUS Battalion, upon the abolition of Army Regional Combat Battalion he organized the activities of
establishment of the TASMUS Battalion between 2004 and 2006. He was the head of the Commission of Inspection of the Republic
of Turkey, Ministry of National Defence during the procurement of TASMUS Systems. He worked as a Branch Manager at the General
Staff Electronic Systems Command, department of senior officers and Electronic Regiment Commandership. After these duties, he
was appointed as Inspector in the Inspection Department of the Republic of Turkey, Ministry of National Defence for one year. He
was promoted one year earlier than due because uf his professional achievements. He retired from his post in Land Forces Command
Communication Electronics Systems Department on 30 August 2015. Salih KUL has been elected as a member of the Board of
Directors during the Ordinary General Assembly held on 26 April 2019.
PROF. DR. İBRAHİM ÖZKOL

He started his undergraduate studies in Istanbul Technical University Faculty of Aeronautics and Astronautics, Department of
Aeronautical Engineering and completed his master’s and doctoral studies in the same department. His academic career has
been interrupted for 15 months between 1992 and 1993 for the duties given by the Undersecretariat for Defence Industries (UDI)
regarding the projects “CASA-3000” and “CN-235” in Spain. He continued his career in the academic world, that he returned in
1996 and received the title “Professor” in 2005. Prof. Dr. İbrahim ÖZKOL has been serving as the Vice Rector of Istanbul Technical
University, as well as teaching staff in the Department of Aeronautical Engineering at the Faculty of Aeronautics and Astronautics.
Prof. Dr. İbrahim ÖZKOL has served as the Chairman of Board of Directors between March 2017 and April 2018 and was assigned as
an Independent Member of the Board of Directors at the ASELSAN Ordinary General Assembly Meeting held on 2 April 2018.
DR. CELAL SAMİ TÜFEKCİ

He has Bachelor’s degree from Gazi University (Ankara, Turkey); graduate degree from Northeastern University (Boston,
Massachusetts, USA) and doctorate degree from Rensselaer Polytechnic Institute (Troy, New York, USA) all in the field of Mechanical
Engineering. Dr. TÜFEKCi has started his professional career at Pitney Bowes Inc. (Shelton, Connecticut, USA) as Project Engineer
and has signed patented works on high performance motion control. After several local and international responsibilities, he started
working at Undersecretariat for Defence Industries (Ankara, Turkey) as the head of the Space Department. Dr. TÜFEKCİ was later
appointed as Vice Undersecretary and still continues to serve in this position. Dr. Celal Sami TÜFEKCİ was elected as a Board Member
at the ASELSAN Ordinary General Assembly held on 2 April 2018.

CORPORATE GOVERNANCE
OUR SHAREHOLDERS ASELSAN MAINTAINS THE PRINCIPLES OF

FAIRNESS, TRANSPARENCY, RESPONSIBILITY
ASELSAN, which is one of the companies owned by the Turkish Armed Forces Foundation AND ACCOUNTABILITY, WHICH DEFINE THE
(TAFF), is a joint stock company with 74.20% of its shares belonging to TAFF and 25.80% of
the shares listed on Borsa İstanbul (BIST). CORPORATE GOVERNANCE APPROACH,
AT THE CENTER OF ITS ACTIVITIES TO
OUR SHAREHOLDERS SHARE AMOUNT (TL) SHARE (%) ACCELERATE ITS STEADY GROWTH AND
TAFF 845,825,624.46 74.20 TO TAKE CARE OF THE INTERESTS OF ITS
Publicy Held (BİST) 294,174,375.54 25.80
STAKEHOLDERS.
Total 1,140,000,000.00 100.00
CORPORATE GOVERNANCE
WE ARE EMPOWERED BY THE CORPORATE GOVERNANCE PRINCIPLES

ASELSAN maintains the principles of fairness, transparency, responsibility and
accountability, which define the corporate governance approach, at the center of its
activities to accelerate its steady growth and to take care of the interests of its stakeholders.
Taking firm steps towards its goal of being among the leaders in the international platform,
the Company makes the utmost effort to ensure full compliance with corporate governance
and legal regulations.
ASELSAN, which is a pioneer in many fields in the sector in which it operates, continues its
works with an integrated corporate management system and protects and enhances its
ethical values in a way that will contribute to the environment and society.
ASELSAN, which has adopted the concept of corporate governance as a core principle,
has been publishing a Compliance Report on the Principles of Corporate Governance
every year since 2004. The rights of shareholders, Annual General Meetings, dividend
distribution policy, disclosure policy, human resources and ethical principles, relations with
stakeholders, corporate social responsibility, the structure, formation, activity essentials
and committees of members of board, risk management and internal audit including
minority rights which are under the headings of shareholders, informing the public and
transparency, interest groups and members of the board within the scope of the Corporate
Governance Principles regulated by Capital Markets Board are detailed within the report.
The Report on the Compliance of Corporate Governance Principles and its activity reports
are published on the Company’s website (www.aselsan.com.tr) and in the annual reports.
ASELSAN’S CORPORATE GOVERNANCE RATING ROSE TO 9.29. ASELSAN HAS BEEN INCLUDED IN BORSA
ASELSAN was awarded a score 8.77 out of 10 on 13 December 2012 by the SAHA İSTANBUL CORPORATE GOVERNANCE INDEX
Corporate Governance and Credit Grading (SAHA) in 2012. This mark is the second best SINCE THE COMPANY OBTAINED ITS FIRST
preliminary mark among the corporate governance grading marks given in Turkey. Since
then, our Company’s level of compliance of corporate governance principles is evaluated
CORPORATE GOVERNANCE RATING.
and updated by an independent rating institution.
ASELSAN’s Corporate Governance rating, which was 9.20 out of 10 on 12 December

2018, was increased to 9.29 out of 10 according to the report published by SAHA on
12 December 2019 as a result of the activities conducted to improve the Corporate
Governance rating during 2019.
Corporate governance ratings in 2018 and 2019 and their sub topics are presented below.
2018 RATING DISTRIBUTION 2019 RATING DISTRIBUTION

Shareholders: 83.63/100 Shareholders: 89.57/100
Public Disclosure and Public Disclosure and
98.70/100 99.01/100
Transparency: Transparency :
Stakeholders: 95.09/100 Stakeholders: 98.13/100
Board of Directors: 90.70/100 Board of Directors: 88.67/100
Average 9.20/10.00 Average 9.29/10.00
ASELSAN’s Corporate Governance Rating Reports published by SAHA are available on

www.aselsan.com.tr.
ASELSAN has been included in Borsa İstanbul Corporate Governance Index since the
Company obtained its first corporate governance rating.

THREE COMMITTEES HAVE BEEN FORMED ASELSAN’s Management Structure
IN ACCORDANCE WITH THE PRINCIPLES OF
CORPORATE GOVERNANCE SET OUT BY THE ASELSAN BOARD OF DIRECTORS
ASELSAN’s management structure consists of only one layer, which is the Members of the
CAPITAL MARKETS BOARD. THEY OPERATE TO Board elected by the General Assembly.
ENABLE THE BOARD TO FULLY EXECUTE ITS
DUTIES AND RESPONSIBILITIES IN ASELSAN. Three members of the Board, which consists of 9 members in total, are independent. All
members of the Board are responsible for the economic performance of the Company.
The CEO has an execution responsibility in the fields of social responsibility and the
environment.
Three committees have been formed in accordance with the Principles of Corporate
Governance set out by the Capital Markets Board. They operate to enable the Board to fully
execute its duties and responsibilities in ASELSAN.
MANAGEMENT
AUDIT COMMITTEE
The committee consists of three independent members of the board. The main
responsibilities of the committee are to inform the public regarding financial issues and
monitor ASELSAN’s accountancy systems, independent internal and external auditing and
internal control systems effectiveness and efficiency. The Internal Auditing Office Head
reports directly to the Audit Committee and Members of the Board. The Audit Committee
convenes at least four times a year.
CORPORATE GOVERNANCE COMMITTEE

The committee consists of three members of the board. The head of the committee is an
independent member of the board. The investor relations manager also is a member of the
committee in accordance with the regulations of the Capital Markets Board. The committee
proposes suggestions to members of the board for the compliance with corporate
governance principles and the realization of improvement activities. It also observes the
activities conducted by the Investor Relations Department. The committee convenes at
least four times a year.
EARLY DETECTION AND MANAGEMENT OF RISK COMMITTEE

The committee was established to determine the risks arising from the Company’s
strategic, operational, financial and external factors and to manage the risks identified
in line with the Company’s corporate risk profile. There are two members of the board in
the committee. The chairman of the committee is an independent member of the Board
THE PRINCIPLES REGARDING THE of Directors. The Committee meets at least six times a year and reports to the Board of
Directors.
FORMATION OF COMMITTEES AND THE
MANNER IN WHICH THEY WORK, MEET AND The principles regarding the formation of committees and the manner in which they
REPORT ARE DETERMINED BY THE MEMBERS work, meet and report are determined by the Members of the Board. Detailed information
OF THE BOARD. regarding the corporate management structure of ASELSAN, Members of the Board and
the committees may be obtained from the www.aselsan.com.tr website.
COMMITTEES AT ASELSAN
Three committees have been formed in accordance with the Capital Markets Board’s
Principles of Corporate Governance by ASELSAN’s Members of Board.
CORPORATE GOVERNANCE EARLY DETECTION AND

AUDIT COMMITTEE
COMMITTEE** MANAGEMENT OF RISK COMMITTEE
İbrahim ÖZKOL* Ercümend ARVAS* Mehmet ARIK*
(Committee Chairman) (Committee Chairman) (Committee Chairman)
Ercümend ARVAS* Celal Sami TÜFEKÇİ Salih KUL

(Committee Member) (Committee Member) (Committee Member)
Mehmet ARIK* Salih KUL

(Committee Member) (Committee Member)
Pınar ÇELEBİ
(Committee Member)
*Independent Board Member
**The Nomination Committee and Remuneration Committee were not formed due to the structure of the Members of
Board. The duties and responsibilities of these committees are undertaken by the Corporate Governance Committee.

MEMBERS OF THE EXECUTIVE BOARD

Chairman of the Board of Directors (Managing Member) and CEO
Prof. Dr. Haluk Görgün completed his undergraduate and graduate education in Electrical Engineering Department of Yıldız
Technical University and his Ph.D. in Rensselaer Polytechnic Institute in New York, USA in 2003. After completing his Ph.D. studies,
he engaged in scientific studies at the University of Connecticut between 2004-2005. He became an associate professor in 2008 and
became a professor in 2013 at Yıldız Technical University, where he served from 2005-2008 as an assistant professor. Between 2014
and 2018, he served as the Rector at Gebze Technical University where he made significant contributions in establishment phase. He
currently is the Chairman of the Board of Trustees and Board of Directors of the Gebze Technical Education and Research Foundation.
Prof. Dr. Haluk GÖRGÜN was elected as the Associate Member of Turkey Academy of Sciences in 2013 and also served as a member
of the Board of Directors in the Informatics Valley. Having served in various committees and boards at TÜBİTAK and YÖK, Prof.
GÖRGÜN owns many national and international articles / memorandums besides publishing editorship and projects. Additionally
he holds a seat at the Board of Trustees of Ostim technical University and Yıldız Technical University. Prof. Dr. Haluk GÖRGÜN was
elected as member of the Board of Directors of ASELSAN in the General Assembly on 15 March 2017. As per the resolution taken at
the Board of Directors meeting dated 17 April 2018, Prof. GÖRGÜN was appointed as ASELSAN General Manager as of 27 April 2018,
in addition to his position as Chairman of the Board of Directors.
MEHMET FATİH GÜÇLÜ

Vice President, Chief Financial Officer
He completed his undergraduate studies at the Faculty of Economics of Istanbul University in the field of Economics. He started
his professional career in 1996 at Eksim Group and held various positions in various sectors. Mehmet Fatih GÜÇLÜ worked in Çalık
Holding Group in between 2005-2009 as Reporting Manager to Affiliates and Budgeting Department, Manager of Financial Affairs
and Director of Finance. He worked as CFO and Assistant General Manager in Medicalpark Hospitals Group between 2009-2011, in
THY Group, as CFO and Assistant General manager at BH Airlines, a partnership of THY in Bosnia-Herzegovina between 2011-2016,
and as CFO and Assistant General Manager at SunExpress Airlines in Antalya and Germany between 2012 and 2016. He acted as
General Coordinator in Deima Electromechanical Products between 2016-2017. Throughout these years, he also carried out the
tasks as the Chairman of the Advisory Board and Strategic Committee of Iran Airtour. Mr. GÜÇLÜ started to work as the Accounting
and Financial Affairs Director at ASELSAN in 2017 and as of September 2019, he was appointed as the CFO and Vice President by the
resolution of ASELSAN Board of Directors.
ASSOC. PROF. HAKAN KARATAŞ

Vice President, Corporate Management and Human Resources Management
He completed his undergraduate degree at the Istanbul University Faculty of Science and Literature, Department of English
Language and Education. He was employed as a Teacher of English at the prestigious Kabataş Boy’s High School between 1996-
2000, and as a Lecturer in the Foreign Languages Department of Yıldız Technical University in 2000, where he also continued his
career as Deputy Head of the Human Resources Development Centre in 2003. He worked as Executive Assistant to the Rector of
Yıldız Technical University from 2004 to 2008, while completing his Masters Degree at the Education Sciences Faculty -Department
of Education Programs and Teaching at the same time in 2007. He later earned his Doctorate from the same Department in 2011.
He was employed as an Assistant Professor at the YTU Faculty of Education in 2012. In 2016, he was awarded with his Associate
Professorship in the field of Educational Sciences by the Inter-university Board. Assoc. Prof. KARATAŞ has published many articles,
papers and other publications, undertaking a wide range of projects. Having acted as Consultant to ASELSAN A.Ş. Board of Directors
between 24 April and 2 July 2018, he was appointed as Vice President for Corporate Management since 2 July 2018.
PROF. DR. MEHMET ÇELİK

Vice President, Technology and Strategy Management
Prof. Dr. Mehmet Çelik graduated from the Mechanical Engineering Department of the Middle East Technical University (METU) in
1989. He obtained his master’s degree in 1991 and his doctorate degree in 1997 from the same department. He worked as a research
associate between 1989 and 1997 in METU’s Department of Mechanical Engineering, and between 1995 and 1996, attended Ohio
State University in the United States as a visiting researcher. Assigned as Senior Lead Design Engineer and Manager of the Mechanical
Analysis and Test Unit at ASELSAN’s Vice Presidency of Radar and Electronic Warfare Systems between 1998 and 2010, Prof. Dr. Çelik
was awarded the title of associate professor in mechanical engineering in 2003. In 2010, Prof. Dr. Çelik was appointed professor at KTO
Karatay University, holding office in this institution as the Head of the Mechatronic and Mechanical Engineering Department, the Chair
of the Bologna Coordination Commission, Vice Dean and Deputy Director of the Institute of Science. Between April and June 2015, he
was the Vice President of TÜBİTAK, and between 2015 and 2017 he assumed various offices as a Member and Vice Chairman of the
Science Board at TÜBİTAK, and as a Member of the Council of Higher Education’s (CoHE’s) Higher Education Quality Board. Prof. Dr.
Çelik continues to serve as a faculty member in KTO Karatay University’s Department of Mechanical Engineering and is a Full Member
of the Turkish Academy of Sciences (TÜBA). Having served as an Advisor to ASELSAN’s Board of Directors between February and April
2017, Prof. Dr. Mehmet Çelik has held the office of ASELSAN’s Vice President of Technology and Strategy since April 2017, in addition
to his duties as Chairman of the Board of ASELSAN Academy and a Member at the Board of TR Education and Technology Inc. He was
appointed as a member of Turkey’s Council of Higher Education pursuant to a Presidential decree on July 15. Prof. Dr. Mehmet Çelik,
Vice President of Technology and Strategy at ASELSAN, has been appointed as a member of the Science, Technology and Innovation
Policies Committee of the Presidency on October 8, 2018.
OSMAN DEVRİM FİDANCI

Vice President, Business Development and Marketing
He received his BS degree from Dokuz Eylül University Electrical and Electronics Engineering Dept. in 1999, MS degree from George
Washington University (GWU) Electrical and Computer Engineering Dept. in 2002 and MBA degree from İstanbul Bilgi University
in 2009. He began his professional career at Nortel Networks/Netaş as the Hardware/VLSI Design Engineer in 1999 and then
conducted research studies and made publications in the fields of high performance computing and cyrptanalysis while working
as the teaching and research assistant at GWU High Performance Computing Laboratory (HPCL) between 2001-2003. He acted
as the Program Manager at Vestel Defence for the G-class Frigate Modernization Program (GENESIS) between 2005-2008, the
Business Development and Strategic Planning Manager role at RMK Marine. As the Public and Defence Solutions Director of Türk
Telekom/Argela, he took the leadership role at the business development and initiation phases of National Base-station Development
Program (ULAK) between 2012-2014. Mr. FİDANCI worked as the Business Development Director at Honeywell between 2014-2017.
Following his role at BMC as the International Business Development Director, Mr. FİDANCI joined ASELSAN in July 2018 and as per
the Board Resolution dated 29 January 2019, he is appointed as the Vice President of Business Development and Marketing.

BAYRAM GENÇCAN
Vice President, Communication and Information Technologies
In 1985 he graduated from the Department of Electronics Engineering of the Military Academy as a Communication Lieutenant.
In 2008, Bayram GENÇCAN, who was retired as a Senior Colonel from the Armed Forces, started to provide consultancy services
on communication systems in the Republic of Turkey, Ministry of Health since 2009. In particular, he worked on 112 radio
communication infrastructure improvement and integration project with JEMUS. Bayram GENÇCAN, who has completed two
master’s degree programs on Public Administration and Organization Management, also graduated from Ankara University Faculty
of Law. Bayram GENÇCAN was elected as a Member of Board of Directors at the ASELSAN Ordinary General Assembly Meeting
held on 15 March 2017 and continued to serve until 5 April 2019. Bayram GENÇCAN was appointed as ASELSAN Vice President of
Communication and Information Technologies as of 5 February 2019.
MANAGEMENT
PROF. DR. SEZAİ ELAGÖZ
Vice President, Microelectronics, Guidance and Electro-Optics
He completed his undergraduate studies at the Department of Physics of Ankara University Faculty of Science and his M.Sc. and
Ph.D. at the Racham Graduate School of Condensed Matter Physics at the University of Michigan with the scholarship the Republic
of Turkey, Ministry of National Education, Youth and Sports in 1993. He served as assistant professor, associate professor and
professor in Faculty of Sciences and continued his career at the Nanotechnology Engineering Department of Cumhuriyet University
Engineering Faculty, which he was the founder of between 1993-2011. He has served as a consultant in ERMAKSAN between
2013-2018, where he has been responsible of the establishment and commissioning of the optoelectronic infrastructure, and for the
national production of high power laser diodes. Professor Dr. Sezai ELAGÖZ was appointed as the Microelectronics, Guidance and
Electro-Optics (MGEO) Business Sector President and the Vice President, board meeting held on 13 of June 2018.
OĞUZ ŞENER
Vice President, Radar&Electronic Warfare Systems
He graduated from Middle East Technical University Electrical and Electronics Engineering Department in 1987. He received his
master’s degree also from Middle East Technical University Electrical and Electronics Engineering Department in 1990. Oğuz
ŞENER, who began his professional life in 1986 as a co-op Engineer in ASELSAN, afterwards worked as an Engineer, a Chief and a
Technical Leader. He served as the Electronic Hardware Manager in Microwave Systems Technologies Division in 2000-2007, and
Radar Electronic Warfare Systems Design Technologies Director in 2008-2014. Additionally, he served as the President of ASELSAN
Technology Supreme Board in 2013- 2014. He served as referee for TÜBİTAK Projects and for investments to universities in State
Planning Organization; and served as expert for workshops organized by several ministries and TÜBİTAK. He was assigned as
the Vice President responsible of Radar & Electronic Warfare Systems in the Board of Directors meeting dated 24 July 2014, to be
effective as of 1 September 2014.
MUSTAFA KAVAL
Vice President, Defence Systems Technologies
He graduated from Middle East Technical University Mechanical Engineering Department in 1986. He received his master’s degree
also from Middle East Technical University Mechanical Engineering Department in 1989. Mustafa KAVAL, who began his professional
career in ASELSAN as an Engineer in 1986, served as Technical Leader between 1997-2000 and as Project Leader between 2000-
2004. He was assigned as the Manager of Air Defence Gun Systems Program Department in Defence Systems Technologies Division
in 2004 and has carried out that duty until 2012. Afterwards he served as the Director of Air Defence Systems Program Directorate
in Defence Systems Technologies Division in 2012-2014. He was assigned as the Vice President responsible of Defence Systems
Technologies in the Board of Directors meeting dated 24 July 2014, to be effective as of 1 September 2014.
DR. İBRAHİM BEKAR

Vice President, Transportation, Security, Energy, Automation and Healthcare Systems
After receiving a B.S. degree in Mechanical Engineering from Istanbul Technical University in 1995, he completed his M.S. and
Ph.D. studies at The University of Akron, in 1999 and 2003 respectively. Dr. BEKAR started his professional career in 2003 at Intel
Corporation as a Technology Development Engineer after a short postdoctoral study. During his tenure at Intel, Dr. BEKAR assumed
several positions such as Technology Development Manager, Process Development Manager, Area Manager, and Technologist and
Staff Engineer. He was appointed as the Deputy Director in 2014 for TÜBİTAK Marmara Research Center (MRC) after returning to
Turkey as Asistant Manager at TÜBİTAK Material Institute. He has also been serving as Turkish delegate to NMBP (Nanotechnologies,
Advanced Materials, Biotechnology and Advanced Manufacturing and Processing) program committee Horizon 2020. It has been
resolved in the Board of Directors meeting dated 30 January 2018 that İbrahim BEKAR shall be the Transportation, Security, Energy,
Automation and Healthcare Systems CEO and the Vice President of ASELSAN.

HIGHLIGHTS OF 2019

DELIVERY OF TASMUS II
THE IP BASED NEW GENERATION
TACTICAL FIELD COMMUNICATION
SYSTEM (TASMUS) II WAS DESIGNED
AND PRODUCED TO MEET THE
COMMUNICATION NEEDS OF OUR
ARMY IN THE TACTICAL FIELD. THE
SYSTEM LEFT ASELSAN FOR FIELD
TESTS AHEAD OF THE FIRST DELIVERY
OF THE PROTOTYPE SYSTEM, WHICH
CONSISTS OF 10 VEHICLES AND SIX
PORTABLE SUBSYSTEMS, TO THE
LAND FORCES COMMAND, THE
ELECTRONIC AND INFORMATION
Today, tactical battlefields need a comprehensive, numerical data transfer system which
SYSTEMS (MEBS) SCHOOL AND
IN 2019
is suitable for use on land. Sensors, weapons and command centers on the battlefield
TRAINING CENTER COMMAND. require high-speed data transfer to perform effectively and harmoniously. In addition,
new military doctrines based on flexibility and mobility require tactical units to be
able to transfer data on the move. On the battlefield, the rapid and reliable transfer of
information is needed for the simultaneous use of basic command control functions
such as air defence, fire support, maneuver control, intelligence, electronic warfare and
logistical support. TASMUS provides the necessary communication support for all these
applications.
THE TECHNO WITH THE TECHNO ADVENTURE PROJECT, ASELSAN WILL

ORGANIZE ACTIVITIES THAT ARE AIMED AT CHILDREN
AGED BETWEEN THE AGES OF 6 AND 12, SO THEY WILL
ADVENTURE BEGINS BE PRODUCTIVE IN TECHNOLOGY.
The Techno Adventure platform, aimed at children between
the ages of 6 and 12 in Turkey, was introduced by ASELSAN to
help children become productive in technology. The project,
under the patronage of the Defence Industry Presidency, was
presented at the launching ceremony held at the Bilkent Hotel
and Congress Center. An animated film, featuring the Techno
Adventure characters of Asel, Eda and Mete, was also shown
at the launch ceremony. Children formed long queues to have
their pictures taken with the Techno Adventure mascot, Asel.
The Techno Adventure Project was realized within the scope

of the ASİL Platform. The Project was implemented for our
little friends within the 6-12 age range, who were born and
are growing up in a rapidly developing technological age, to
more easily keep pace with the age which they were born into.
In order to instill our domestic and national values in children
at a young age in the field of the Defence Industry and to help
them grow up as individuals who are technologically aware, the
project is planned to continue in the long term, both over the
internet and through live activities.

HIGHLIGHTS OF 2019
ASELSAN ALSO VALUES THE ENVIRONMENT

ASELSAN increased its score from “B” to
“A-” in 2018, with a performance which
exceeded the global and national average.
With this score, ASELSAN was among the
top two highest ranking companies in
our country. In the world, its score ranked
alongside major defence industry leaders.
Considered one of the most prestigious

environmental projects in the world,
the CDP provides companies with an
opportunity to carry out performance
improvements by enabling their climate
strategies to be disclosed to the public.
ASELSAN WAS AWARDED AT THE WORLD’S MOST PRESTIGIOUS Companies listed on the BIST-100 and
other companies from Turkey voluntarily
ENVIRONMENTAL PROJECT, THE CDP (CARBON DISCLOSURE PROJECT). participate in the CDP report, which
ASELSAN’S DEPUTY GENERAL MANAGER, ASSOC. PROF. HAKAN KARATAŞ, is important for brand value, investor
relations studies and sustainability all over
PARTICIPATED IN THE LEADERS PANEL WITH THE TOPIC OF “THE SECRET the world.
OF SUCCESS: THE ROLE OF BOARDS OF DIRECTORS AND MANAGERS IN
DETERMINING CLIMATE CHANGE STRATEGIES” AS A SPEAKER AT THE CDP
CLIMATE CONFERENCE HELD ON THE SAME DAY.
FIRST DELIVERY OF KORKUT SERIAL

PRODUCTION PROJECT REALIZED
ITS FIRST DELIVERY ACCEPTANCE PROCEDURES The effectiveness demonstration test for the air-to-surface
missiles, which is the most challenging stages of the acceptance
STARTING ON 26 FEBRUARY 2019, THE KORKUT activities, was completed with the successful downing of the
SERIAL PRODUCTION PROJECT WAS SUCCESSFULLY target aircraft with a speed of approximately 200 m/sec. During
the tests, KORKUT won wide acclaim from the acceptance
COMPLETED ON 25 MARCH 2019 WITH THE committee with its high performance. After the acceptance tests
were successfully completed, the Korkut Systems were delivered
ACCEPTANCE OF THREE WEAPON SYSTEMS to the Air Defence School and Training Center Command on 29
VEHICLES AND ONE COMMAND CONTROL VEHICLE. March, 2019.

ASELSAN SYSTEMS TO SERVE IN THE ALTAY
TANK
THE ALTAY SERIAL PRODUCTION The President of The Defence Industry, Prof. Dr. İsmail Demir, the Chairman of the Board of
Directors of BMC, Ethem Sancak, the Chairman, President and CEO of ASELSAN, Prof. Dr.
PROJECT SUBSYSTEMS CONTRACT Haluk Görgün, and the executives of other main subcontractor companies attended the
WAS SIGNED BETWEEN BMC ceremony held at the BMC Stand. With the gains acquired in the ALTAY Project, ASELSAN
has become the only company in the world to develop all of the task equipment and
AND ASELSAN TO PROVIDE THE software for main combat tanks domestically and nationally with its own resources and
integrate them into the tanks.
SYSTEMS TO BE INSTALLED IN THE
ALTAY TANKS BY ASELSAN AT THE ASELSAN, which successfully took part in the development and modernization programs
of different tank platforms in recent years, developed all of the critical task equipment and
IDEF 2019 DEFENCE INDUSTRY software of the Turkish Main Combat Tank, the ALTAY, with its considerable experience in
FAIR. the field of tanks. The integration and verification of the ASELSAN systems on the ALTAY
Tank prototypes were carried out within the scope of the ALTAY Project Period-I. In the
process, the ASELSAN systems were successfully verified with more than 2000 shots on
the ALTAY Tank prototypes and more than 10,000 km of land driving tests in all terrain
conditions, to simulate the conditions a tank would be exposed to over its lifespan.
IN 2019

HIGHLIGHTS OF 2019
AIMING FOR
THE TOP 50
ASELSAN RANKED IN 52ND PLACE
ON THE LIST OF THE WORLD’S
100 TOP DEFENCE INDUSTRY
COMPANIES (DEFENSE NEWS TOP
100), GAINING THREE PLACES.
ASELSAN, which is an organization of the ASELSAN, which entered the list of the world’s top 100 defence industry companies
Turkish Armed Forces Foundation, continued (Defense News Top 100) in 2006, was ranked in 55th place last year. ASELSAN
its rise on the list published by the Defence increased its success with the new projects it undertook this year, and it ranked at the
News magazine, a US-based military publishing 52nd rank, rising three places, with a turnover approaching USD 1.8 billion.
company.
SECOND PARTY DELIVERY OF ADOP-2000

COMPLETED
ACCEPTANCE ACTIVITIES WHICH
BEGAN IN THE 54TH MECHANIZED
INFANTRY BRIGADE ÇORLU
COMMAND CONTINUED AT THE
MACUNKÖY FACILITIES AND THE
KAYSERİ 2ND MAIN MAINTENANCE
FACTORY DIRECTORATE. THE
ACCEPTANCE ACTIVITIES WERE
COMPLETED WITH THE DELIVERIES
ON 7 AUGUST 2019.
The Fırtına Howitzers Task Computers, portable
system sets, Application Classroom, the armored
personnel carriers, which are equipped with
the systems that enable fire support elements
to perform command control and surveillance
functions on the battlefield, and the systems
consisting of tactical wheeled platforms were
accepted.

ASELSAN IS A STAR
ATTRACTION AT
THE TECHNOFEST.
ASELSAN TOOK PART IN THE
TECHNOFEST 2019 FAIR AND EXHIBITED
A SERIES OF THE LATEST TECHNOLOGY
PRODUCTS, IN PARTICULAR
UNMANNED SYSTEMS.
During the festival, ASELSAN promoted the General Purpose Helicopter Cockpit,
bomb destruction robot Ertuğrul and Kaplan, the Kaplan autonomous Unmanned
Ground Vehicle, the UKAP Remote Control Shooting Platform, the anti-UAV, multi-
rotor unmanned system Serçe 2, the Mini Unmanned Aerial System Nano-UAV, the
Karagöz Balloon Surveillance System and the Akustika autonomous underwater
vehicle. Guests visiting the ASELSAN stand also had the opportunity to examine the
IN 2019
products produced with domestic and national technology.
ASELSAN HIGH SCHOOL STUDENTS

STUDENTS WHO ATTENDING THE ASELSAN
VOCATIONAL AND TECHNICAL ANATOLIAN
HIGH SCHOOL JOINED THEIR FAMILIES,
EXECUTIVES FROM THE REPUBLIC OF TURKEY,
MINISTRY OF NATIONAL EDUCATION AND
ASELSAN, AS WELL AS ASELSAN EMPLOYEES,
WHO UNDERTOOK MENTORING OF THE
STUDENTS IN THE ORIENTATION PROGRAM
WHICH WAS HELD.
At the beginning of 2019, the first vocational and technical Anatolian

high school was established in the field of defence within the scope of
the protocol signed between the Republic of Turkey, Ministry of National
Education and ASELSAN to train qualified personnel in the defence
industry. The ASELSAN Vocational and Technical Anatolian High School
took students from the uppermost 0.46 percentile in the field of electrical
and electronic technology. This was the first time a vocational and
technical Anatolian high school took students from the top 1% segment.
The “Defence Electronic Systems” and the “Defence Mechanical Systems”

branch programs were opened at the ASELSAN Vocational and Technical
Anatolian High School. The teaching programs of these branches were
developed with a work team created by ASELSAN and MTEGM the
Republic of Turkey, Ministry of National Education, the General Directorate
of Vocational and Technical Education) to meet the needs of the defence
industry.

HIGHLIGHTS OF 2019
ASELSAN HAS MAINTAINED ITS PLACE ON

THE BORSA İSTANBUL SUSTAINABILITY
INDEX.
ASELSAN has maintained its place on the Borsa İstanbul Sustainability Index since 2014.
ASELSAN has consistently achieved significant success with its In this manner, a tool is created which will facilitate investment
inclusion in the Sustainability Index, now for a sixth time. The in those companies which are successful in the field of
Sustainability Index was set up by Borsa İstanbul, so companies sustainability, an area which has become increasingly important
which adopt the principles of sustainability and corporate social and has even become the most important investment criterion
responsibility, and which make a difference in these fields, can for some institutional investors, and various indicators are
be distinguished by investors. offered so that companies can improve themselves in this regard.
Within the scope of the index, an independent London- ASELSAN, which was one of the 15 companies in Turkey which
based survey organization cooperating with Borsa İstanbul qualified to be included in the index in 2014 when the index
examines and evaluates the sustainable activities carried out was first launched, has maintained its place on the index every
by companies in key areas such as corporate governance, year since then. This year (2019), it took its place among the
environmental awareness, social responsibility, ethical 56 companies included in the index as a result of its work that it
principles, human rights, employment practices, occupational carried out and its continued improvement in the areas which
health and safety and the supply chain. constituted a benchmark for the index throughout 2018.

ASELSAN IS 44 YEARS OLD
PROF. DR. GÖRGÜN WROTE THE FOLLOWING IN THE BOOK:
“The Great Leader Atatürk, we are proudly in your presence on this

day, where we celebrate the 44th anniversary of the foundation of
ASELSAN.
Since the day it of its foundation, ASELSAN has continued to advance

its place in the global market with its depth in technology, its
strength in research and development activities and by developing
its design and production competencies. It is taking firm steps
forward in its efforts with the desire for our country to reach its 2023
goals.
ASELSAN, the largest company in the Turkish In order to become the ASELSAN of our Great Turkish Nation and
our army, we will continue to maintain our leadership in developing
Defence Industry, visited the Anıtkabir on the 44th domestic and national solutions by developing our technologies in
anniversary of its foundation. the fields where we operate, by increasing our competitive clout with
innovative, environmentally sensitive, energy-efficient systems and
The Chairman, President and CEO, Prof. Dr. Haluk Görgün, together products.
with executives and employee representatives, stood in silence to
IN 2019
pay their respects at the Anıtkabir, where they arrived by walking In this journey of technology which we take, your adage, “The truest
along the Aslanlı road. Prof. Dr. Haluk Görgün laid a wreath at the mentor in life is science” has been our guiding principle.
mausoleum and signed the Anıtkabir private book after paying their
respects. May your soul be blessed.
ZERO WASTE The project was expanded with the applications such as waste
separation points, glass/porcelain cup usage and collection of
pharmaceutical waste, and it was rolled out to cover all ASELSAN
campuses.
PROJECT LAUNCHED Implemented under the slogan of “Zero Waste, We Have Added Value
to the Future”, the Zero Waste Project launch ceremony, which detailed
the applications of the project, was held at the Macunköy campus
AS AN ENVIRONMENTALLY SENSITIVE with the participation of Mrs. Emine Erdoğan and the President of The
TECHNOLOGY COMPANY, THE ZERO WASTE Defence Industry, Prof. Dr. İsmail Demir, and the senior management
of ASELSAN. At the ceremony, a painting prepared by using waste
PROJECT, AIMED AT PREVENTING WASTE, materials by students of ASELSAN Nursery was presented to Mrs. Emine
USING RESOURCES MORE EFFICIENTLY, Erdoğan.
MINIMIZING WASTE CREATION AND

ENSURING RECOVERY, WAS IMPLEMENTED
ON 21 OCTOBER 2019 WITH THE APPLICATION
OF THE “WE ARE DECOMPOSING OUR FOOD
WASTE” WITH THE SUPPORT OF OUR ASİL
SOCIAL RESPONSIBILITY TEAM.

LEARNING AND ORGANIZATIONAL DEVELOPMENT
The Directorate of Learning and Organizational Development aims to ensure the THE DIRECTORATE OF LEARNING AND
development of individuals and teams in an integrated manner organizationally with the ORGANIZATIONAL DEVELOPMENT HAS
activities it implemented. For this purpose, activities are carried out primarily to ensure
individual and organizational learning and development, increase the level of competency
ENSURED ASELSAN EMPLOYEES POSSESS
of employees and the organization, and generate information sharing environments CONTINUOUS COMPETENCE BY SUPPORTING
aimed at creating organizational memory. The Directorate of Learning and Organizational ASELSAN’S CORPORATE GOALS AND
Development has provided ASELSAN employees with continuous competency by STRATEGIES, PLACING THE SPOTLIGHT ON
supporting ASELSAN’s corporate goals and strategies, thus placing the provision of
ORGANIZATIONAL DEVELOPMENT.
organizational development as a focal point. In this context, the Company systematically
carries out learning and development activities as measured and improved activities
aligned with ASELSAN’s strategies and business plans.
THE ASELSAN COMPETENCY MODEL
Competency definition work continues as part of the planning of the learning and
development activities, as based on competency and in alignment with ASELSAN’s
strategies and business plans. For this purpose, first of all teams were established with our
specialized and experienced employees in order to determine technical competencies. In
the first phase, a total of 14 main competency headings, 46 competency elements and 281
behavioral indicators were defined at four different levels for these competencies for the
product life cycle and system engineering, along with 71 knowledge area and 272 skills.
In addition to competency modeling efforts, work was also initiated to support our
employees in areas where they are deemed to have room for improvement by matching
behavioral competencies with the training programs which are included in our training
plan. A total of 36 competencies identified in the behavioral competency model were
matched with 29 training programs by taking into account learning purposes. The results
of the 2019 behavioral competency assessment will be used as an input for training plans
by using these matches. By determining technical and behavioral competencies and the
training which needs to be taken in order to achieve these competencies, it Company aims
to provide proactive training planning for the training for employees as required in their
duties.
LEARNING AND DEVELOPMENTAL ACTIVITIES
The performance of the design and development activities carried out at ASELSAN is
closely related to the qualified and sustainable intellectual capital. Investment undertaken
in the learning and development of our employees will contribute to increasing the
intellectual capital of our company, as well as increasing efficiency, innovation and
employee satisfaction at ASELSAN. It will create a highly motivated employee profile
which is committed to the company and who have adopted the ASELSAN culture. In
this context, 18,317 man hours of training were given by internal trainers from the
Directorate of Learning and Organizational Development in 2018. In addition, 24,905
man hours of training were provided under 57 different headings for ASELSAN employees
by the Directorate of Learning and Organizational Development, and 47,907 man hours
of compulsory occupational health and safety training was provided. Of the training
provided under 57 different headings, 7,132 man hours consisted of Technical Training,
2,937 man hours were Management Training, 7,322 man hours were Specialization
Training, 7,410 man hours were Personal Development Training and 104 man hours were
General Information Training. Initiatives for the establishment of necessary information
infrastructures were also initiated in 2018 for the purpose of achieving a more widespread
use of methods which will support in-class training such as distance learning.

INFORMATION SHARING AND WORKSHOPS
In order to preserve corporate memory and to spread the information obtained and the
lessons learned, organizing activities for information sharing and workshops continued
throughout 2018. In March, the Joint Mind Workshop was held with the participation
of employees from the Information Management Directorate and specialists involved
in the relevant processes. New processes defined with the Information Technologies
Demand Management Monitoring, which came into effect in 2017, were evaluated. The
third Materials Workshops were held in May with the participation of researchers from
universities and relevant personnel from ASELSAN.
With the slogan of “You Are Our Future”, the first of the Employee’s Voice Workshops was
held in October with the participation of approximately 1500 engineers in order to create
an environment in which our employees could share their ideas and opinions with our
company’s top management. The opinions and suggestions recorded in the workshop
were combined with the post-event survey and made into a report and shared with all our
employees.
Information days, organized with the aim of sharing the work of those who received
ASELSAN scholarships with our employees continued.
LONG-TERM MAN POWER TRAINING PROGRAM
Scholarship and internship programs, serving the goal of raising long-term manpower,
are carried out under the coordination of the Directorate of Learning and Organizational
Development. In this context, 1,000 university students were provided with internships
and 299 high school, junior technical college and technology faculty students were given
vocational training opportunities. In 2018, a total of 13 people, including three ASELSAN
IN 2019
staff, continued to receive scholarship support for doctorate and post-doctorate research
in Turkey and abroad.
A four-week training program was implemented in July for 15 high school students with
special abilities (from the Istanbul Research Development Education and Application
Center High School), who had been selected by the Republic of Turkey, Ministry of
National Education to provide specially talented students of secondary education level
with an understanding of developments in the defence sector as well as an insight into
engineering and other fields, while encouraging motivation to work in such fields, and
potentially to increase the contribution they would able to provide to our country in the
future.
VOCATIONAL AND TECHNICAL ANATOLIAN HIGH SCHOOL
The vocational training cooperation protocol was signed between the Republic of Turkey,
Ministry of National Education, the General Directorate of Vocational and Technical
Education (MTEGM) and ASELSAN at a ceremony held at the ASELSAN Macunköy
facilities. The ceremony was attended by the Minister of National Education Prof. Dr.
Ziya Selçuk, The President of The Defence Industry Prof. Dr. İsmail Demir, the Chairman,
President and CEO of ASELSAN Prof. Dr. Haluk Görgün, and many distinguished guests.
The protocol set out the vocational and technical training activities to be carried out
in cooperation with the MTEGM and ASELSAN to train qualified manpower for the
defence industry. Within the scope of the protocol, Turkey’s first Vocational and Technical
Anatolian High School for defence industry systems at the secondary education level will
be established, bearing the name of ASELSAN.

HUMAN RESOURCES MANAGEMENT AT ASELSAN
WE ARE AWARE THAT OUR MOST IMPORTANT

SOURCE OF VALUE WHICH WILL CARRY
ASELSAN’S COMPETITIVE CLOUT INTO
THE FUTURE IS OUR COMPETENT HUMAN
RESOURCES. WITH THIS AWARENESS, 2019
WAS A YEAR IN WHICH WE DETERMINED THE
ROADMAP FOR THE HUMAN RESOURCES
PRACTICES THAT WILL GUIDE THE FUTURE.
ASELSAN IS STRENGTHENED BY YOUNG TALENT
In 2019, when we celebrated ASELSAN’s 44th anniversary of foundation, we aimed to

meet the need for qualified employees from all over the world with HR policies which have
updated in line with the value we attach to people and evolving needs. In this respect, we
have brought in more than 1,500 talented individuals into the ASELSAN family.
We have not limited our talent acquisition strategy to domestic resources, and have
also made it a mission to restore our country’s trained manpower to our country. The
importance we attach to the “Back to Turkey” project is an indication of this mission.
We sincerely believe in the contribution which the fifteen valuable talented individuals
joining our family having returned to our country within the scope of the project, will
provide to ASELSAN, the leading organization of our country’s defence industry, with their
international experience and knowledge.
ASELSAN ranked as the 1st choice to work in for Y and Z generation representatives in
the Engineering / IT in the Universum Ideal Employers Survey also in 2019 as in the past
6 years. In addition to the category of Engineering / IT, ASELSAN consolidated its place
in the top 10 in this field in 2019, having climbed 5 places among students in the field of
Economic Administrative Sciences and rising one place for young professionals.
In 2019, we moved our domestic employer brand activities - which we had carried out in
Turkey – abroad. Within the scope of the international fairs organized under the Presidency
of the Turkish Republic Presidential Human Resources Office, we met young people
looking for a career in the field of defence industry, in the UK, Germany, Uzbekistan and
South Africa.
In addition, in 2019, we designed the A Talent program for young talented individual
to develop themselves in terms of professional qualification and competencies before
starting working life, to step into the working life by getting to know the ASELSAN culture,
and to establish one-to-one contact with young talented students and lead their career
developments through mentoring efforts. In addition to the Engineering Candidates,
students from administrative branches began to work at ASELSAN as Candidate Specialists
under the program.
WE EVALUATE EVERY OPPORTUNITY TO MEET ASELSAN PERSONNEL
We make sure each member of our family has the opportunity to come together from the
first moment they start their career at ASELSAN and we strengthen the bond between the
members of ASELSAN’s personnel.
Within the scope of our program of the “Our Future is With You” program, which we
implemented in 2019, we bring our new recruits together with our senior management
every month. The newest ASELSAN personnel get to know our culture through a daily
program enriched by team games, where they acquire basic information about the
company through informative presentations and have the opportunity to meet and mingle
with other colleagues who are have also newly joined ASELSAN.

WE HAVE TAKEN OUR FIRST STEP WITH THE We came together with our new employees as well as our existing employees in 2019.
PROJECT OF CULTURAL TRANSFORMATION Every Monday and Friday, we listened to the opinions and suggestions of our employees
at breakfast organizations, which our managers also attended, which proved a pleasant
AND VALUES IN THE PROCESS WE HAVE interlude to chat and share information with them. We will continue this event, which has
EMBARKED ON WITH THE VISION OF attracted positive feedback, in 2020.
BRINGING HUMAN RESOURCES PRACTICES
TO ASELSAN WHICH MEET INTERNATIONAL During 2019, we sent thank you letters to the families of our employees who graduated
from the university and who had joined the ASELSAN Family, having progressed from
IN 2019
STANDARDS. WE BELIEVE OUR VALUES
being candidate engineers to specialist engineers. We thanked the families for bringing
WHICH SHAPE THE ASELSAN CULTURE a new star to ASELSAN, for sharing those who are most valuable to them with us every
WILL ENLIGHTEN US ON THE PATH WE TAKE day, for being the secret heroes in their children’s success and for including us in their
FORWARD WITH THE GOAL OF BEING THE achievements.
BEST.
We started the mentoring program, which we launched with the Compass brand, so
employees just joining our family could more quickly adapt to the ASELSAN culture and
their duties.
We continued the Employee’s Voice Workshops in 2019, which we had started in 2018 in
order to create an environment in which our employees would be able to share their ideas
and opinions with our company’s top management until we had met all of our employees. .
WE CARE ABOUT THE DEVELOPMENT OF OUR EMPLOYEES
We believe that our investment in the learning and development of our employees will
contribute to increasing the intellectual capital of our company, as well as increasing
efficiency, innovation and employee satisfaction at ASELSAN. It will create a highly
25,820
man hours
Training Given by Internal
Trainers
45,923 46,185
man hours man hours
Occupational Health and Organized Training
Safety Training

HUMAN RESOURCES MANAGEMENT AT ASELSAN
Personal Development Trainings 16,790 man hours
Specialty Trainings 12,347 man hours
Technical Trainings 11,560 man hours
Management Trainings 5,092 man hours
General Training 396 man hours
motivated employee profile which is committed to the company and who have adopted the
culture of ASELSAN. With this belief, also in 2019, we took steps which will ensure access
to learning opportunities at any time, by continuing to invest in the development of our
family.
Designed to facilitate management, documentation, monitoring, measurement and

reporting of learning and development activities holistically through a single system, to
provide the training needed by ASELSAN’s employees to be offered with distance learning
support and for employees to easily access learning and development information, we
opened the new Learning and Development Platform, “a BİL-GE”, for use in 2019. We
launched the project with the participation of approximately 250 people, including our top
management.
WE ARE RAISING THE MANPOWER ASELSAN NEEDS IN THE LONG TERM
Within the scope of scholarship and internship programs which serve the goal of training
long-term manpower, we provided internship opportunities to 920 university students
and vocational training opportunities to 280 high school, junior technical college and
technology faculty students. In 2019, we continued to support 9 researchers with
scholarships for doctorate and post-doctorate research in Turkey.
We implemented a 3-week summer training program in August and September for 20

special talented students who were selected by the Republic of Turkey, Ministry of National
Education in order to improve the quality of education, to ensure that applications in the
defence sector are seen by the specially talented students at the secondary education level
and that the students gain insight and motivation about work in engineering and other
fields, and increase the contributions that they can make to our country in the future.

IN 2019
THE ASELSAN VOCATIONAL AND TECHNICAL ANATOLIAN HIGH SCHOOL WAS
OPENED.
In order to educate qualified manpower for the defence industry, we opened the first
Vocational and Technical Anatolian High School for defence industry systems in the
secondary education field of Turkey to bear the name of ASELSAN within the scope of the
vocational training cooperation protocol signed between the Republic of Turkey, Ministry
of National Education, the General Directorate of Vocational and Technical Education
(MTEGM) and ASELSAN.
Within the scope of curriculum work to be followed at the ASELSAN Vocational and
Technical Anatolian High School, we devised four new courses to be taught in the 11th and
12th grades for the Defence Electronic Systems branch, and 7 new courses to be taught in
the 11th and 12th grades for the Defence Mechanical Systems branch.
As a result of our work which we have carried out meticulously, The ASELSAN Vocational
and Technical Anatolian High School accepted the students from the uppermost 0.46
percentile in the field of electrical and electronic technology. A total of 120 students
enrolled in our school, having chosen the ASELSAN Vocational and Technical Anatolian
High School and achieved success in the High School Entrance Exam, thus qualifying to
enroll in Turkey’s long-established Anatolian high schools. The youngest and most excited
members of the ASELSAN family began their education on 16 September 2019.
WE ARE STRENGTHENING ASELSAN’S EMPLOYEE EXPERIENCE.
With our ASELSAN Human Resources Roadmap, we aim to create a management system
which will be closer to the employee in 2020. In line with this goal, we established the HR
Business Partnership structure in 2019 and will implement it in 2020. We will re-define
performance with a focus on continuous improvement and feedback. By reviewing our
talent and career management system, we will support our high-potential employees, who
will carry ASELSAN to the future, through development centers.

TECHNOLOGY AND STRATEGIC MANAGEMENT
THE ASELSAN RESEARCH CENTER
INTELLECTUAL RIGHTS SUPREME BOARD THE ASELSAN ACADEMY
TECHNOLOGY ROADMAP NATIONAL AND LOCAL PRODUCT DEVELOPMENT BOARD
STRATEGIC MANAGEMENT R&D PROJECTS WITH INTERNAL RESOURCES
CENTRAL PROJECT MANAGEMENT OFFICE (PMO)
With its high capability and agility in transforming R&D into innovation-based products, ASELSAN is the largest R&D base in
our country with to its technological depth and density. Since its foundation in 1975, ASELSAN has brought some of the world’s
most advanced defence technologies, all home grown, into the Turkish Armed Forces. ASELSAN, which contributes to Turkey’s
technological independence by producing high-tech solutions which are fully suited to customer demands, carries out effective
Technological and Strategic Management which takes into account the technological developments in the world as well as
Turkey’s changing needs.
The studies of advanced core technology, which will ensure the products we develop at ASELSAN’s Sector Directorates are
innovative, home-grown, exportable and competitive, are managed through the internally funded R&D Projects Process.
Technology Roadmaps and the installation and development plans of related infrastructures are created and monitored in
harmony with the Strategic Goals and Targets. All steps are taken to ensure that the ASELSAN Sector Directorates produce rapid
and efficient solutions working together with boards such as the National and Domestic Product Development Supreme Board,
the Intellectual Rights and Publications Supreme Board. The feasibilities of ASELSAN’s strategic/technological subsidiaries and
investments are prepared in line with future strategies.
Pioneering research activities aimed at increasing technological capabilities are carried out at the ASELSAN Research Center in
cooperation with universities. With the ASELSAN Academy, all post graduate education studies are carried out in accordance with
the ASELSAN Technology Roadmap and the projects carried out in the departments where our personnel work.
STRATEGIC MANAGEMENT
With the ASELSAN Strategic Management System, the strategies are their results. The evaluation of the report results contributes to the
based on ASELSAN’s vision, mission, core values and superiorities and development of new strategies.
they are developed, planned (relevant goals/targets are determined),
implemented in line with the strategies of other critical stakeholders, CORPORATE PERFORMANCE
particularly the Turkish Armed Forces Foundation (TSKGV). Progress
toward the targets are monitored in an electronic environment.
The ASELSAN Corporate Scorecards located on online system are
updated every year in accordance with the ASELSAN Strategic
STRATEGIC PLANNING
Plan. Scorecards, which contain indicators that are important at the
corporate level, are monitored electronically by authorized managers
ASELSAN’s strategies are determined by considering growth,
and realizations are monitored during the year. At the end of the
globalization, value generation for its customers, conducting R&D
activities, being competitive and efficient, strengthening human value year, the Corporate Performance Measurement is carried out and
and the financial structure and which are detailed in the ASELSAN the results contribute to the development of new strategies and
Strategic Plan covering the following five-year period. Reviews, influence the individual performance evaluation of employees.
strategic analysis and reporting activities are carried out to support
strategic decisions during the preparation period of the ASELSAN
Strategic Plan.
Activities are planned to achieve the goals and targets in the ASELSAN
Strategic Plan. With the ASELSAN Strategic Plan Monitoring System,
data collection, monitoring and measurement are carried out in
electronic environment in relation to these activities and realizations
are reported during/end of the year. Reporting mechanisms are put
in place to support these activities and to make the technological
investments within the ASELSAN Technology Roadmap and evaluate

IN ORDER TO IMPROVE ASELSAN’S STRATEGIC PRACTICES
PROJECT MANAGEMENT PROCESSES
AND APPLICATIONS, WORK IS CARRIED Work is carried out for the investigation, evaluation and development of recommendations
for the rollout of successful applications within ASELSAN and pilot applications are
OUT WITHIN THE CENTRAL PROJECT
developed.
MANAGEMENT OFFICE (PMO).
THE CENTRAL PROJECT MANAGEMENT OFICE (PMO)
In order to improve ASELSAN’s Project Management processes and applications, work
is carried out within the Central Project Management Office (PMO). In this context, the
Central Project Management Office was established under the Technology and Strategy
Management Deputy General Manager (TSMDGM) and Sector Project Management
Offices were established within the Sector Directorates. In the field of Project Management,
partnering of applications in the Sector Directorates, procurement of project management
software and integration of the software into the existing Enterprise Resource Planning
System (ERP) has been carried out.
Within the scope of the activities carried out under the coordination of the Central Project
Management Office (PMO), common project management principles and the Project
Performance Measurement and Evaluation Methodologies, under the Project Prioritization
Methodology, are being determined in accordance with the ASELSAN Strategic Plan in all
Sector Directorates. This work is expected to be completed by the end of 2020.
TECHNOLOGY MANAGEMENT
IN 2019
THE FULL INTEGRATION OF THE TECHNOLOGY ROADMAP
TECHNOLOGY ROADMAP AND INVESTMENT Since 2018, the Technology Roadmap has been designed by taking into account many issues
PLAN (TRIP) AND THE ASELSAN INVESTMENT such as R&D projects funded by internal resources, the technological investment plan, the
BUDGET WAS ACHIEVED, THUS INCREASING technology development status, thesis subjects, technologies that are vital at a national
THE EFFECTIVENESS OF THE TRIP. level, technologies containing innovation and compliance with the strategic plan. With a
comprehensive perspective, the Technology Roadmap is prepared digitally under the name
of the “Technology Roadmap and Investment Plan” (TRIP). As of 2019, the TRIP had been fully
integrated into ASELSAN’s investment budget, facilitating effectiveness of planning and the
traceability of realizations.
The quantitative measurement of the development of the technologies aimed for under the TRIP
is performed through the “Technological Development Year-End Target Achievement Status”
indicator created through the realizations of the “Technology Readiness Levels”. These results
of the measurement are reflected to performance evaluation results of ASELSAN and the Sector
Directorates within ASELSAN.
INNOVATION ACTIVITIES PLANNED AT THE INNOVATION

HIGHEST LEVEL WITHIN THE SCOPE OF Innovation activities at ASELSAN are planned and implemented within the scope of the Strategic
THE STRATEGIC PLAN AND TECHNOLOGY Plan and Technology Roadmap at the highest level. At ASELSAN, as a mission company,
ROADMAP ARE CARRIED OUT AND “innovation” is tightly woven into the company’s DNA, the most important component of the
IMPLEMENTED IN TERMS OF PRODUCT, company’s sustainable growth. ASELSAN carries out innovative activities in the entire fields of the
business model, processes, products, services and the organization. For example, the Technology
SERVICE, PROCESS, BUSINESS MODEL AND Roadmap, which includes the planning and methodology of innovation at ASELSAN, has been
ORGANIZATIONAL INNOVATION. systematically implemented as a new business model since 2018. The relevant plan is used as the
highest level innovation strategy document which reflects this business model.
New processes, new business models and, when necessary, new organizations, which are
addressed by this high-level innovative business model are managed in an integrated manner.
The ASELSAN ACADEMY, which is the new business model innovation in itself with the
management process of internally funded projects and an example of open innovation, is the
integrated element of this main business model. In addition, work on many mechanisms such
as R&D collaborations with universities and suppliers, the “Intellectual Rights and Publications
Supreme Board”, which was established to ensure the results and continuity of innovation, has
been stepped up thanks to the driving force of innovation.
ASELSAN participated in the “InovaLİG” competition, touted as the Innovation league of Turkey.
In the competition, which was organized by the Turkish Exporters Assembly in 2019, ASELSAN
reached the finals in the “Innovation Strategy” category among 1,236 competitors in five
categories.

TECHNOLOGY AND STRATEGY MANAGEMENT
NATIONAL/DOMESTIC PRODUCT DEVELOPMENT ACTIVITIES ACTIVITIES AIMED FOR THE DEVELOPMENT

OF NATIONAL and DOMESTIC PRODUCTS,
Activities aimed for the development of national and domestic products, which are
WHICH ARE CURRENTLY BEING OR
currently being or planned to be procured from abroad, continued in 2019.
PLANNED TO BE PROCURED FROM ABROAD,
Our activities towards national and domestic development of the products we utilize in CONTINUED IN 2019.
ASELSAN products, which are being or planned to be procured from abroad, continued
in 2019. For this purpose, the National Domestic Product Development Board (NDPDB),
which was founded in 2018 with the representatives of the relevant units of ASELSAN
under the coordination of the Technology and Strategy Management Deputy General
Manager, and the Sector Subcommittees formed in 2019; investigate, examine and analyze
all materials and systems, which are needed in our projects and are purchased from
abroad. The Board and the Subcommittees identify the products that can be developed
nationally and domestically, prioritizes these products, determines what systems,
subsystems and components and similar products could be potentially developed by
the SMEs, the quantity of the projected requirements as well. Subcommittees were
formed from the representatives of the quality, production planning, design and project
management departments in such a way to relate to every point from the identification of
the need to the acceptance stage.
In addition, in order for all of this work to be defined in 2019, management processes and
workflows were defined. A Web based Infrastructure development work was initiated
so the National and Domestic Product Development process could be followed digitally
within ASELSAN.
National and Domestic product development activities has been stepped up to this end,
the technical specifications of the products purchased from abroad and which can be
developed by SMEs in our country are defined in brochures. These brochures were shared
in events being participated such as the IDEF and the Efficiency and Technology Fair. In
addition, in 2019, meetings were held with various clusters in Turkey within the scope of
National and Domestic Product Development with visits to Chambers of Commerce and
Industry. Employing this method, it was made possible to reach many sub-contractors and
SMEs, and to start the domestication work for many products. ASELSAN CONDUCTS ITS SELF-FUNDED
RESEARCH AND DEVELOPMENT ACTIVITIES
INTERNALLY FUNDED R&D PROJECT MANAGEMENT AND MONITORING
UNDER THE COORDINATION OF THE
Innovation is the key to increasing ASELSAN’s competitive clout. Apart from the work DEPUTY GENERAL MANAGER OF THE
carried in contracted projects, ASELSAN implements Research and Development Projects TECHNOLOGY AND STRATEGY DEPARTMENT
with its own resources in line with its strategic goals. To fund the internally funded R&D WITH A REFEREED PRODUCT INNOVATION
project expenditures, each year, an amount equal to 7% of the previous year turnover INFRASTRUCTURE.
is allocated to domestication and innovation targeted efforts in accordance with the
Technology Roadmap and Investment Plan (TRIP), seeking to carry existing systems further
and acquire new technologies.
All of the planned R&D Projects funded with internal resources are evaluated by the Self-
funded R&D Projects Evaluation Committee, which consists of senior managers, by taking
into account the views selected ASELSAN personnel referees, who have served as technical
and system engineering managers or project managers in the projects related to the
subjects in TRIP and/or who hold a PhD in related fields.
Projects given the green light to begin following the evaluation are submitted to the
approval of the senior management and work got underway. All of the self-funded
R&D projects are monitored by the referee and the Committee at certain intervals with
evaluations on whether the project has progressed in accordance with planned technical
and financial terms.
The decision was taken in 2019 to digitalize this method, which was initiated as a newly
defined process in 2018, due to the increase in the number of projects. For this purpose,
definitions and evaluations were made for the operation of every stage of the self-funded
R&D process digitally starting from the application stage to the referee evaluations and on
to the interim period evaluations and the closure. The digital structure is expected to be
activated by 2020.
Cooperation is done with many universities, SMEs and subcontractors in the self-funded
R&D projects. A ceremony to mark self-funded R&D projects and cooperation between

AS OF 2019, 150 PROJECTS WERE BEING industry and academia was held on 16 April 2019, to meet with cooperating universities
CARRIED OUT AS SELF-FUNDED R&D and SMEs, evaluate the work done and to strengthen the relations. At the ceremony, a
commemorative plaque was presented to representatives from the universities and the
PROJECTS WITHIN ASELSAN. SMEs for their selfless and value-added work.
As of 2019, 150 projects were being carried out as self-funded R&D projects within
ASELSAN.
IN 2019
THE MANAGEMENT PROCESS OF ASELSAN’S SELF-FUNDED R&D PROJECTS
Self-Funded
Projects:
• Indigeneous
THE ASELSAN THE ASELSAN &Innovative
THE ASELSAN Development
STRATEGIC TECHNOLOGY
PROJECTS • Concept
PLAN ROADMAP
Development
Contracted
Projects
ASELSAN KONYA SİLAH SİSTEMLERİ A.Ş. FOUNDED

ASELSAN Konya Silah Sistemleri A.Ş. was established in partnership with
Konya Savunma Sanayi A.Ş., which emerged as the clustering of Defence
Industry with ASELSAN. ASELSAN Konya Silah Sistemleri A.Ş. is planned to
start its activities as a subsidiary that will carry out the production of existing
weapons systems designed by ASELSAN.
The groundbreaking ceremony of the first stage of ASELSAN Konya Silah

Sistemleri A.Ş., which represents an important milestone in Turkey’s goal of
developing and domestication of its own weapons systems in the defence
industry and eliminating its dependence on the foreign resources, was held
on 22 March 2019.
The construction of the facility, which has an enclosed area of 56,000 m2

is planned to be completed at the end of 2020. ASELSAN Konya Silah
Sistemleri aims to become a company which will bring ASELSAN’s R&D
Culture together with the Konya region’s weapon production capability,
with the aim of capturing a significant market share not only in the domestic
market, but also in foreign markets.

TECHNOLOGY AND STRATEGY MANAGEMENT
THE ASELSAN CYPRUS ADVANCED

TECHNOLOGIES RESEARCH CENTER, WHICH
WILL CARRY OUT ITS ACTIVITIES IN KALKANLI
TECHNOLOGY VALLEY OF THE NORTH
CYPRUS CAMPUS AT THE MIDDLE EAST
TECHNICAL UNIVERSITY (METU-KALTEV),
WAS OPENED AT A CEREMONY ATTENDED BY
THE VICE PRESIDENT OF THE REPUBLIC OF
TURKEY, FUAT OKTAY ON 20 JULY 2019.
THE ASELSAN CYPRUS ADVANCED TECHNOLOGIES RESEARCH CENTER HAS

OPENED
The ASELSAN Cyprus Advanced Technologies Research Center, which will carry out its
activities at the Middle East Technical University’s Kalkanlı Technology Valley (METU-
KALTEV) in its North Cyprus Campus, has opened with a ceremony attended by the Vice
President of the Republic of Turkey, Fuat OKTAY, on 20 July 2019.
The Cyprus Advanced Technologies Research Center will carry out pioneering research
studies and academic activities to increase ASELSAN’s competitive edge in order to gain
an advantage in the generation of national and critical technologies. It will carry out its
work particularly on renewable energies, antennas, RFs (radio frequency) and materials
technologies.
ASELSAN will develop advanced technology research projects in the 500 square meter
office area allocated to it, and the communication tests area, which it established within
the region, with academics, who specialize in various research and development fields, in
Cyprus. In addition, it will develop technologies, which will enable the use of solar and wind
energy for the island’s power network.

FEASIBILITY STUDIES WERE CARRIED OUT
ON ANTENNAE AND INTEGRATED LOGISTICS
SUPPORT ACTIVITIES TO SUPPORT DECISION
PROCESSES DURING 2019.
FEASIBILITY STUDIES REALIZED IN VARIOUS SUBJECTS
Feasibility studies were carried out on antennae and integrated logistics support activities
to support decision processes during 2019.
IN 2019
Within the scope of the feasibility work onantennae, studies were carried out into whether
or not the antennae, which ASELSAN is currently procuring or will procure from abroad in
the coming periods, or which it plants to purchase in Turkey by creating a capability, can be
domestically and nationally designed and produced cost effectively.
The Integrated Logistics Support (ILD) Feasibility study was aimed at determining the
situation for drawing up the policies which need to be followed in this regard by analyzing
the integrated logistics support (ELD) activities which ASELSAN must fulfill over the next 6
year (2020-2025) period and which can be outsourced.
A feasibility study was carried out into the partnership of the TechnoHAB Technology
Development Center established within the Ankara Space and Aviation Specialized
Organized Industrial Zone (HAB), and its cost to ASELSAN was analyzed with respect to the
benefits which it may provide to ASELSAN, and considering the possible alternatives within
the framework of the existing plans.
INTELLECTUAL PROPERTY RIGHTS SUPREME BOARD BECOMES ACTIVE
The Intellectual Property Rights Supreme Board was established to guide ASELSAN’s
strategies and work related to Intellectual Property Rights and Publications and to control
ARAŞTIRMA all publications and presentations made outside ASELSAN, and started its activities. The
new board conducts planning for the studies which will guide the commercialization
strategies of the ASELSAN Intellectual Property Rights, evaluations of the applications to
be made to the Turk Patent in accordance with the suggestions presented by the existing
patent boards within the research centers and the international patent applications and
their approval and the establishment and coordination of the control mechanisms which
will control the sharing of items such as articles, publications, theses and presentations
prepared by ASELSAN personnel outside the company, in terms
of invention and confidentiality.
KNOW-HOW
PATENT
THE STUDIES CARRIED OUT ARE AIMED AT

DEVELOPING THE TECHNOLOGIES WHICH
WILL ENABLE NANO UAV TO PERFORM IN
ENVIRONMENTS OUTSIDE GNSS SIGNAL
RANGE.
THE NANO UNMANNED AERIAL VEHICLE DEVELOPMENT PROJECT
Within the scope of the project, preliminary research was carried out on visual and visual/
inertial interior navigation technologies. By determining visual navigation algorithms
suitable for the nano uav hardware, which is a closely followed subject in sector literature,
the operating performance of these algorithms in the data sets created is evaluated.
AUTONOMOUS JOINT TASK FORCE APPLICATIONS PROJECT WITH THE AUTONOMOUS JOINT TASK FORCE
APPLICATIONS PROJECT, OUR LEVEL OF
The project was launched on 1 November 2019 in order to bring team-level task planning, TECHNOLOGY IS PLANNED TO BE RAISED
situational awareness and task management capabilities to the team which was created IN TERMS OF POSITIONING, NETWORK AND
within the scope of a task consisting of different types of unmanned elements. In the
TASK MANAGEMENT IN HETEROGENEOUS
first phase of the project, work begun on establishing project infrastructure, preliminary
research and identification of the requirements. TEAMS.

IN THE FIRST PHASE OF THE PROJECT,
WORK ON ESTABLISHING THE PROJECT
INFRASTRUCTURE, PRELIMINARY RESEARCH
AND IDENTIFYING THE REQUIREMENTS GOT
UNDERWAY.
IN 2019
TECHNOLOGY DEMONSTRATION PROTOTYPE COMPRESSED SENSING RADAR TECHNIQUES
DEVELOPMENT STUDIES GOT UNDERWAY
Algorithms were developed to reduce the number of T/R modules and antenna elements
AND HARDWARE IMPLEMENTATION OF
of phased array radars without compromising performance with the Compressed Sensing,
THE DEVELOPED ALGORITHMS HAS BEEN Machine Learning and Advanced Optimization techniques. Technology demonstration
INITIATED. prototype development studies have got underway and hardware implementation of the
developed algorithms has been initiated.
Compressed Sensing Radar RF Subsytem

Development
Compressed Sensing Radar FPGA Prototype

Development

INFRARED COMPUTATIONAL IMAGING TECHNIQUES COMPUTATIONAL IMAGING TECHNIQUES

WERE DEVELOPED FOR SUPER RESOLUTION
Using computational imaging techniques, super-resolution single pixel camera and micro- SINGLE PIXEL AND MICRO-SCANNING
scanning camera studies were carried out. A high resolution image can be obtained from
CAMERAS.
low resolution sensors with the developed techniques. This technology will be integrated
into the cameras developed by ASELSAN in the medium term.
Original Low Resolution
Literature Suggested
With computational imaging techniques, high resolution can be obtained from a low resolution
sensors.
MAGNETIC PARTICLE IMAGING TECHNIQUES
Algorithms for high-quality real-time imaging and fast calibration methods were developed
for magnetic particle imaging (MPI), which is a new medical imaging modality. A novel
open MPI scanner prototype was developed, and coronary vessel phantoms were
successfully imaged. The developed scanner configuration was patented in the USA.
FOR MAGNETIC PARTICLE IMAGING, AN

OPEN-SIDED LINE SCANNER PROTOTYPE
SYSTEM WAS DEVELOPED FOR THE FIRST
TIME IN THE WORLD.
ASELSAN MPI Prototype System

SUBMARINE CLOAKING TECHNOLOGIES
Active and passive methods have been investigated to reduce the acoustic visibility
of submarines. Metamaterials that provide acoustic absorption under water were
investigated. Metamaterial types suitable for the submarine platform were selected and
analyzed using simulations. Preliminary design activities were carried out on smart surface
technologies for active invisibility.
IN 2019
FACE RECOGNITION TECHNOLOGIES
Many new features, especially visual face sensing and recognition

studies and identification, have been brought to ASELSAN products.
All of the algorithms designed within the scope of the studies are
developed to work in mobile platforms which lack high processing
power. These capabilities are aimed to be easily adaptable to all
ASELSAN products, especially unmanned systems.
TEXT ANALYSIS
New language processing methods specific to ASELSAN have been

developed within the scope of learning-based text analysis studies.
The collection of valuable data from the texts will pave the way for both
automatic information processing and effective communication of the
machines with people. These technologies are expected to play an
important role in the majority of ASELSAN’s systems in the near future.

DEEP LEARNING BASED ALGORITHMS

WITH THE ABILITY TO DEVELOP COURSE OF
ACTION FOR WARGAMING STARTED TO BE
DEVELOPED IN THE ASELSAN RESEARCH
CENTER.
REINFORCEMENT LEARNING
Recently, artificial intelligence assistants have been developed for decision support in
military processes by taking inspiration from the successes of deep reinforcement learning
techniques in chess and in the game of Go (a Chinese strategy game). In the ASELSAN
Research Center, deep learning based algorithms with the ability to develop course of
action for warfare games have been started to be developed. These are aimed to ensure the
developing technology becomes available in the field of warfare in a short time.
OPTICS BASED SENSOR TECHNOLOGIES FOR BIOSECURITY
The development of domestic and national optics based diagnostic methods and
microfluid cartridges is continuing rapidly as part of the “Detection of Bioterrorist Agents”
project being carried out in the Biodefence Research Program Unit. The production of
antibodies to be used in the diagnostic systems developed in the project continues in
cooperation with the Gebze Technical University. A product prototype will be created to
detect the agents identified at the end of the project.

IN 2019
ASELSAN AIMS TO CARRY OUT INNOVATIVE INNOVATIVE CBR-E AGENTS SENSING SYSTEMS DEVELOPMENTAL STUDIES
SENSOR STUDIES WHICH WILL RAMP
UP CAPABILITY IN THE CBR (CHEMICAL, ASELSAN aims to carry out innovative sensor studies which will increase capability in
the CBR (chemical, biological, radiological)-E defence field at its Biodefence Laboratory.
BIOLOGICAL, RADIOLOGICAL)-E DEFENCE
Studies are ongoing to develop an immunofluorescence system, Raman spectroscopy,
FIELD, IN THE BIODEFENCE LABORATORY. impidimetric based electrochemical measurement system, microscope with artificial
intelligence and magnetic particle spectroscopy, which will have applications in liquid,
solid and gas samples.
ADVANCE MATERIALS
The Advanced Materials Research Program Unit was established under a pioneering and
original R&D organization to advance ASELSAN’s technological dominance in its fields of
activity. The unit aims to carry out the synthesis and prototype production of Nanomaterials
such as Graphene and 2D Structures, Wearable and Cloaking Materials, Ceramics and
Metal Powders, which direct new generation technologies in a way which will increase the
competitiveness of our products.

THE ASELSAN ACADEMY
THE ASELSAN ACADEMY OPENS FOR THE 2019-2020 FALL SEMESTER

The ASELSAN Academy has carried on its growth with number of enrolled students
approaching 600; 66 faculty teaching a total number of 71 courses on Electric and
Electrical and Electronics, Mechanical, Computer and Metallurgical and Materials
Engineering. 187 people applied for the 2019/2020 Spring semester.
The ASELSAN Academy program supports ASELSAN’s goal of developing innovative

products and technologies with diversifying thesis topics through giving them the
opportunity to pursue postgraduate studies directly related to the projects, which they are
working on.
The distribution of students according to each department and university in the 2019-2020
Fall semester is given in the graph below.
2019-2020 Fall Semester Student Distribution as per Departments

132
70
69
40
29
24
Computer Engineering
19
14
13
Electrical and Electronics Engineering

7
Mechanical Engineering
7
5
3
Metallurgical and Materials Engineering

Gazi University Gebze Teknik University İTU METU
THE ASELSAN ACADEMY DAYS EVENT – METU (THE MIDDLE EAST TECHNICAL UNIVERSITY)
The ASELSAN Academy Days Event was held at the Kemal Kurdaş Convention Center on 27th June, 2019
with more than 300 participants, hosted by the Middle East Technical University and with the participation
of Prof. Dr. Haluk Görgün, the Chairman, President and CEO of ASELSAN, and rectors of from the Program
Partner Universities. At the event, our current ASELSAN ACADEMY graduate students were informed in
various topics to help development in their academic studies.
One of our speakers from the Middle East Technical University, Assoc. Dr. Eren Kalay, a Metallurgical and
Materials Engineering Department faculty member, gave a presentation on “Doctorate and Research
Experiences”. Another speaker from the Middle East Technical University, Dr. Gökçe Gökalp, a faculty
member of the Department of Educational Sciences Department made a presentation on “Thesis Writing
Processes, and Dr. Fatih Say, Military Computer Design Manager of ASELSAN, gave a presentation on
“Doctoral Process of the Employee from Course to Thesis”.

THE SECOND WORKSHOP OF THE ASELSAN 2ND ASELSAN ACADEMY WORKSHOP AT ITU
ACADEMY, WHICH HAS BROUGHT A BRAND
The second workshop of the ASELSAN Academy, which has brought a brand new
NEW DIMENSION TO COOPERATION dimension to cooperation between industry and academia in our country, was held at the
BETWEEN INDUSTRY AND ACADEMIA IN Ayazağa campus of the İstanbul Technical University (ITU) between 12-15 October, 2019.
OUR COUNTRY, WAS HELD AT THE AYAZAĞA
CAMPUS OF THE ISTANBUL TECHNICAL The ASELSAN Academy, which has brought a brand new dimension to the academia-
industry cooperation, held its 2nd Workshop in the Ayazağa Campus of Istanbul Technical
UNIVERSITY (ITU) BETWEEN 12-15 OCTOBER, University (ITU) at 12-15 October, 2019.
IN 2019
2019.
During the 2nd ASELSAN Academy Workshop, thesis and dissertation topics that are and
will be carried out within the scope ASELSAN’s novel and advanced technologies are
discussed, involving the academics from the program-included research universities (ITU,
METU, the Gazi University and the Gebze Technical University).
With the aim of further advancing the cooperation between ASELSAN and the universities,
the academics were given up-to-date information on the R&D projects which are carried
out at ASELSAN, the ASELSAN Research Center and the ASELSAN Academy by ASELSAN’s
engineering directors.
In addition, academics from Gazi University, the Gebze Technical University, Istanbul
Technical University and the Middle East Technical University shared information on the
research activities carried out at their universities in the engineering fields within the
program and laboratory facilities at their universities.
The workshop continued with a number of sessions, which addressed the ASELSAN
Academy operations, state-of-the-art technologies and the research activities carried out in
related fields at the universities.
On the final day of the workshop, laboratories, Research Centers in ITU Ayazağa Campus
and the ITU-ARI Technopark are visited, while the academics shared information on their
work with the attendees.

BUSINESS DEVELOPMENT AND MARKETING ACTIVITIES
“TECHNOLOGY SERVING PEOPLE & PLANET” ASELSAN CONTINUED HER RISING PACE IN
ASELSAN FOCUSES ON INTERNATIONAL GROWTH TOP DEFENSE CONTRACTORS LIST AMONG
THE TOP 100 BIGGEST DEFENSE COMPANIES
With her advanced technology dedicated to welfare of societies and people, wide-ranging IN THE WORLD. BEING INITIALLY RANKED
product line from defence to civilian systems; ASELSAN is now a global technology leader
IN 2006, ASELSAN IMPROVED ROBUST,
serving the requirements of 65 countries in 5 continents in a sustainable manner.
SUSTAINABLE CORPORATE GROWTH AND
ASELSAN utilizes technological know-how, skills and expertise accumulated from a heritage HIGH PERFORMANCE ALSO WITHIN 2019 AND
relying on ethical values in line with her conviction to the motto, “Technology serving People STEPPED UP TO THE 52ND RANK IN THE LIST.
and Planet.”
In order to have a better understanding of the requirements and expectations of her clients,
ASELSAN structurally re-organized her International Business Development and Marketing
Department as a Vice Presidency in 2019 where her export figure is increased by nearly 50%
compared to previous years.
KL SUMMIT, MALAYSIA, 2019
LOCAL PRODUCTION FACILITY OPENING, UKRAINE, 2019
Apart from these, ASELSAN continued her rising pace in top defense contractors list among
the top 100 biggest defense companies in the world. Being initially ranked in 2006, ASELSAN
improved robust, sustainable corporate growth and high performance also within 2019 and
stepped up to the 52nd rank in the list.
In order to comply with her “local to global” business philosophy, ASELSAN continues to
establish Joint Ventures, local production facilities, branch offices abroad.

ASELSAN IS SHARING HER “KNOW-HOW” ASELSAN is sharing her “know-how” accumulated through decades in different activity fields
ACCUMULATED THROUGH DECADES with the partner countries’ capable institutions and companies. With more than 20 subsidiaries,
and the recently established ASELSAN GLOBAL Company, ASELSAN’s footprint continues to
IN DIFFERENT ACTIVITY FIELDS WITH expand in the international arena. In the complex and fast-changing environment, ASELSAN’s
THE PARTNER COUNTRIES’ CAPABLE global workforce supports her industrial cooperation and responds to geopolitical changes.
INSTITUTIONS AND COMPANIES. ASELSAN pays attention to provide employees from varied nations, different educational and
cultural backgrounds within her Business Development and Marketing Vice Presidency in order
to meet her international clients’ current and future requirements.
IN 2019
To achieve sustainable exports, ASELSAN continued her activities with strategic international
collaborations. In 2019, ASELSAN participated in 14 international exhibitions (including
IDEF that was held in İstanbul) in Asia - Pacific, Middle East, Africa, Europe and Americas and
represent the Turkish defense industries to promote brand awareness at a global scale.
DSEI FAIR, UK, 2019
The dynamics of global competition significantly differs from the dynamics of domestic
competition. ASELSAN will support her core parameters such as price and quality by
establishing local partners, enabling technology transfer, developing financial instruments,
managing her brand and reputation, building effective communication at both corporate and
individual levels, offering after-sales support and promoting business ethics. ASELSAN will take
firm steps towards her goals and achieve great projects with the same determination in 2020.

FILEDS OF ACTIVITY

ASELSAN CONTINUES TO SERVE AS A
GLOBAL COMPANY WHICH DEVELOPS,
MANUFACTURES, INSTALLS AND MARKETS
MODERN ELECTRONIC DEVICES AND
SYSTEMS WITH ORIGINAL DESIGN AND
CARRIES OUT AFTER-SALES SERVICES.
COMMUNICATIONS AND INFORMATION

TECHNOLOGIES BUSINESS SECTOR
FILEDS OF ACTIVITY

COMMUNICATIONS AND INFORMATION TECHNOLOGIES BUSINESS SECTOR
MILITARY COMMUNICATION SYSTEMS
MILITARY RADIO
Software Based VHF / UHF Radio Family

The delivery and installation of the Land Platform V / UHF Vehicle / Fixed Center Radios,
whose mass production is ongoing, continued. Deliveries of the internal communication
system which is included in the same contract as the V / UHF Radios were completed.
The design work for the Electronic Warfare Protected Handheld Radio was completed. The
first product verifications were carried out and mass productions got underway.
Deliveries of the Naval Platform / Fixed Center V / UHF radios for use by the Air Force
Command continued.
Local production activities under the Software Based V / UHF Radio contract are ongoing in
Pakistan. Production activities are continuing within the scope of local production activities
with license transfer in Saudi Arabia. Deliveries under the contract signed on the supply of
digital internal speech systems to be used in tactical vehicles, and the V/UHF Back, Vehicle
and Electronic Warfare Protected Handheld Radio for the armed forces of friendly and allied
countries were carried out later in the year.

DELIVERIES WITHIN THE SCOPE OF THE The deliveries under contracts signed on the supply of digital domestic internal systems
CONTRACT SIGNED ON THE SUPPLY OF to be used in the V/UHF radio and tactical vehicles for the Ukrainian Armed Forces were
HF RADIOS FOR THE AZERBAIJANI ARMED carried out later in the year.
FORCES WERE CARRIED OUT THIS YEAR.
The Software Based HF Radio Family
Delivery and installations for the contracts under the spread of the Land platform HF
radios continued. The deliveries were carried out under the 5kW and 10kW HF Transmitter
System Contract for the use by the Naval Forces Command.
Installation and integration activities of the Naval Platform HF Radios in various forces
(150W, 400W, 1000W) on the Naval Forces and Coast Guard Command platforms
continued.
Our activities under contract with Saudi Arabia for the supply of Software Based HF Radios
continued with user training and the installation of delivered radios.
Deliveries under contract signed on the supply of the HF Radio for the Armed Forces of
Azerbaijan were carried out this year.
Air Communication Systems

The delivery of air communication devices for Atak (EGEMEN), ANKA-S, Original Helicopter
(GÖKBEY), HÜRKUŞ-B, General Purpose Helicopter (GMH), DOĞAN and Multi-Band
Digital Joint Radio (MBDJR) Air and Tower Installation and Integration continued within the
scope of international projects, as well as the integration activities of these devices.
Installation and integration of the ASELSAN product Voice Communication and Control
System (VCCS) to the air traffic control towers belonging to the Land Aviation Command
were carried out in accordance with the program. With the changes to the contract for
the MBDJR Project, the relevant VCCS and other communication systems of the Cengiz
Topel Air Traffic Control Tower and Administrative Building, which belong to the Naval
Air Command, together with the turnkey project were included in the contract. The
FILEDS OF ACTIVITY
modernization of air traffic control towers continued within the scope of international
projects.

System design and production activities were carried out within the scope of Airport Traffic
Radar-Communication Infrastructure Project. Within the scope of the TB-2 (UAV) program,
the integration and verification of the prototype product, which will act as a radio repeater,
were successfully carried out on the platform.
The Researcher Training Program for the Defence Industry (RTPDI/SAYP) Project entitled
“Installation of VHF/ UHF Communication Antennae to Complex Platforms” which was
launched with the Eskişehir Technical University in recent years, reached the completion
stage.
The national air antenna development activities working in the V/UHF and HF band
were completed and integration and verification activities for rotary wing and fixed wing
platforms were carried out.
Marine Communication Systems

Our Integrated Communication System provides unique solutions to meet the internal and
external communication needs of the platforms of various sizes that will be newly added to
our navy or currently serving.
Factory acceptance tests for Milgem (4. Ship), Landing Helicopter Docks (LHD), Testing
and Training Ship (TTS/TVEG), New Type Submarine (NTS) (1st Ship) and new SAT Boats
(NSAT) were successfully completed and our work on the platforms continues.
The LHD has the most comprehensive communication configuration to date in terms of
platform size. It was the first project where the subsystems of critical importance such as
the IP Communication Control System, HF and V/UHF Broadband Radio Systems were
designed and produced with national resources. A communication system solution for an
underwater platform was provided with the NTS project for the first time.

Tactical Field Communication System
The TASMUS System is an integrated solution that responds to all of the requirements
FILEDS OF ACTIVITY
needed in the tactical field with its compliance with network based communication
concept, strong IP (Internet Protocol) infrastructure, compatibility with other
communication systems, its increased bandwidth and its architecture which is open to
development. Within the scope of the contract signed with the Turkish Armed Forces
(TAF), the process was completed with the deliveries of the modernized TASMUS-G+ in two
different regions in 2019. The TASMUS systems, which were delivered between 2001 and
2010, were updated to run as TASMUS-G+ systems.
The delivery of the TASMUS-II prototype system, which will be the next generation TASMUS
system, was completed in 2019. The TASMUS II prototype system was brought into use as
two separate units. The decision to mass produce the TASMUS II is expected to be taken
after receiving feedback and development suggestions.
A similar communication system consisting of the TASMUS elements was exported in 2019.
The system, which was delivered, will be commissioned in 2020.
Secure VoIP (E-VoIP) Terminal

The new E-VoIP terminal, with the 2122 model number, was developed in 2018 and
brought into use with the TASMUS II prototype system. The secure VoIP terminal will
provide encrypted audio and data communication between tactical and strategic
communication systems.
Broadband Waveform
Within the scope of ULAK project signed with the Defence Industry Presidency, broadband
waveform development studies and field trials for the Software Based V/UHF Radio Family
were completed in 2019 and work on the 3rd version is ongoing.

Identification Systems MASS PRODUCTION AND INTEGRATION

Mass production and integration work continued on the NATO STANAG 4193 compliant WORK OF THE NATO STANAG 4193
IFF Mod 5/S Transponder, IFF Short/Medium Range and Long Range Mod 5/S Interrogator
systems. With regard to the other airborne, naval and land platform needs of the TAF
COMPLIANT IFF MOD 5/S TRANSPONDER,
(Turkish Armed Forces), efforts continued to develop IFF Combined Interrogator/ SHORT/MEDIUM RANGE INTERROGATOR
Transponder, IFF Portable Interrogator and Reverse IFF. AND LONG RANGE INTERROGATOR SYSTEMS
CONTINUED.
The contract was signed for the use of the Battlefield Target Identification System (BTID),
which was developed in accordance with the requirements of NATO STANAG 4579, in the
ALTAY Tank. Our mass production proposals for the widespread use of the system on other
related land platforms of the TAF were sent to the relevant companies.
Data Link Systems

Mass production deliveries of the UMTAS RF Data Link are continuing.
IFF Mod 5/S Short/Medium Range Interrogator
Medium Altitude Air Defence Missile System (HİSAR-O) Data Link Sub-System design
verification activities were completed. During the course of the firing tests, it was found
that communication with the missile through the data link was achieved throughout the
missile’s flight.
In addition, the data link prototype was developed to meet the communication needs
in intelligence, reconnaissance, surveillance and targeting operations, and system level
integration and verification activities are ongoing.
Within the scope of the National Long Range Air Defence System contract signed IFF Mod 5/S Long Range Interrogator
between the ASELSAN-ROKETSAN-TÜBİTAK SAGE Joint Venture and the Defence Industry
Presidency, data link system development work is continuing and the requirement
definition phase was completed, with the prototype development phase continuing.
SATELLITE TECHNOLOGIES
IFF Mod 5/S Transponder
SATELLITE GROUND SYSTEMS
ASELSAN Satellite Communication Terminal Solutions

ASELSAN offers unique Satellite Communication Terminal
solutions which serve in different frequency bands for various
platforms in line with customer requirements.
İNTİKAL ETTİRİLEBİLİR TERMİNAL

WITH THE MANPACK, FLY-AWAY, SATCOM
ON THE PAUSE AND SATCOM ON THE MOVE
SATELLITE COMMUNICATION TERMINALS
WITHIN THE ASELSAN PRODUCT FAMILY,
SOLUTIONS ARE OFFERED TO MEET THE
COMMUNICATION REQUIREMENT OF LAND
PLATFORMS.
Stabilized Satellite Communication Terminals, which provide reliable and uninterrupted

communications on the move on airborne, naval and land platforms, are designed and
manufactured to be light and compact and in accordance with military standards. With
the Manpack, Flyaway, SATCOM On The Pause and SATCOM On The Move Satellite
Communication Terminals within the ASELSAN product family, solutions are offered which
meet the communications needs of land platforms.
Critical sub-products and software such as Modem, LNB, Antenna and RF units that make
up the terminals are developed nationally.
System control stations, which were set up to provide services in areas such as the access
of the satellite terminals to the communication network within the land, naval and airborne
satellite communication systems of ASELSAN and the channel requirement management,
as well the remote management of these terminals, also offer switching infrastructure for
FILEDS OF ACTIVITY
the communication configurations of satellite terminals.
TUMSIS X-Band Satellite Communication System Project

The X-Band Satellite Communication System (TUMSIS) Project includes the design,
production, integration, infrastructure activities, installation on related platforms,
verification, testing and acceptance activities for X-Band Satellite Communication Main
and Backup Control Stations, Shipborne, Manpack, Portable, SATCOM On The Pause
and SATCOM On the Move (SOTM) Vehicular Satellite Communication Terminals, which
will work together with the X-Band Satellite Communication System Payload. The critical
design phase of the project was completed and development, production and material
supply activities for sub-systems continue.
With the change to the contract, capability development in-house has been increased for
satcom on-the-move terminal.
Ku Band Satellite Communication System Project

Within the scope of the Ku Band Satellite Communication System Project, Satellite
Communication Control Stations and Satellite Terminals will provide voice, fax, data
and image services to the Turkish Armed Forces. Within the scope of the project, the
installation, integration, testing and acceptance activities of the Main and Backup
Control Stations, Flyaway Satellite Communication Terminals, and Manpack Satellite
Communication Terminals and Shipborne Satellite Communication Terminals were
realized, and the project was completed.
Project to Supply Military Satellite Communication System for the Kılıç Type Patrol
Boat (KASUMSIS)
Within the scope of the KASUMSIS Project, a wide array of domestic and national units,
the stabilized antenna system in particular, were designed and produced and the satellite
communication system is being integrated into the Kılıç Type patrol boats. The satellite
communication units, which will serve as the equivalent of related satellite communication
systems, are also integrated into satellite communication and control stations.

NAVAL SATELLITE COMMUNICATION TERMINALS PRODUCT FAMILY
1.8 M 1.5 M 1.0 M
The satellite communication system was integrated on patrol boats and temporary
acceptance tests of some of the systems were successfully completed. Temporary
acceptance tests of other systems are planned to be completed later this year.
1.5/1.8 meter X-Band Stabilized Shipborne Antenna Development Project

The project carried out with ASELSAN’s own resources is aimed at creating a solution for
the X-Band Satellite Communication Antenna System with a 1.5m or 1.8m reflector needed
for frigate and large tonnage vessels. Pedestal, reflector and RF subcomponents were
designed and produced for both antennas. The project achieved its objectives and was
completed and converted into the contracted projects. The 1.5m reflector antenna system
will be used in the TUMSIS and MILGEM-5 projects, while the 1.8m reflector antenna
system will be used in the Test and Training Ship (TVEG), the LHD and Sea Combat Support
Ship (DIMDEG) projects.
Other Shipborne Platform Satellite Communication Projects

Harbor acceptance and sea acceptance activities of the satellite communication systems
on the MILGEM-3 and MILGEM-4 ships were carried out. TVEG Factory Acceptance Tests
were completed and factory acceptance tests were completed in the LHD Project.
Submarine Platform Satellite Communication Projects

Factory acceptance tests of the satellite communication terminal that is used in the first
submarine belonging to the New Type Submarine Project (NTSP) were completed. Within AIRBORNE SATELLITE COMMUNICATION TERMINAL
the scope of the Preveze Type Submarine Half-Life Modernization Project, work continued
for the design of the submarine stabilized antenna system.
Ku Band Air Satellite Communication System Project

Using its own resources, ASELSAN carried out the design work on the airborne satellite
communication system and equipment which will present a solution to Unmanned Aerial
Vehicles (UAV) and other air platforms within the scope of the Ku-Band Airborne Satellite
Communication System Development Project. The airborne satellite modem, antenna
system and the antenna control units which make up the system were produced. The
bidirectional data communication was carried out by stabilizing the moving simulation
platform and the UAV.

ASELSAN IS RESPONSIBLE FOR WERE
INSTALLED IN THE FIELD AND PRESENTED
TO THE USERS. WORK ON MAINTENANCE
ACTIVITIES IS CONTINUING.
Airborne SOJ Satellite Communication System Project

Design work was carried out for the airborne satellite communication system and
equipment, which will provide solutions within the scope of the airborne SOJ Satellite
Communication System Project.
GÖKTÜRK-1 Reconnaissance and Surveillance Satellite System Project

Within the scope of GÖKTÜRK-1 Reconnaissance and Surveillance Satellite System Project,
ASELSAN is responsible for providing the S/X band antenna system, shelter and Auxiliary
Services Subsystem, Image Exploitation Services and User Interface Services software and
FILEDS OF ACTIVITY
Meteo Forecast Services connected with fixed and mobile ground stations. The systems
which ASELSAN is responsible for were installed in the field and presented to the users.
Work on maintenance activities is continuing.
The AZRA Satellite Communication System Project

Work on the satellite communication systems’ procurement, assembly, installation, testing
and acceptance activities continued within the scope of the AZRA Satellite Communication
System Project.
SATELLITE PAYLOAD
Türksat-6A National Communication Satellite

In 2019, ASELSAN continued system and equipment level design activities within the scope
of developing the Ku Band Satellite Communication Payload in the Türksat-6A National
Communication Satellite, using national resources wherever possible. Engineering model
integration and tests related to the Ku Band Satellite Communication Payload, developed
Turkey Coverage Antenna are still being conducted, were completed successfully at the
ASELSAN Macunköy facilities in 2019. The Payload Engineering Model was shipped to
TUSAŞ-USET (Space Systems Integration and Testing Center) to be integrated into the
satellite. Qualification models for the Ku Band Receiver, Payload Interface Unit (FYAB),
INET and ONET equipment, developed nationally and indigenously, were produced and
qualification tests were completed. Qualification testing activities for the Turkish Antenna
are continuing.
TUMSİS X-Band Payload

In 2019, the production and testing of the qualification model of the DOCON-L equipment,
which consists of Frequency Down-Converter (DOCON), Channel Amplifier (CAMP)
and Harmonic Filter units and was originally developed by ASELSAN within the scope
of the X-Band Payload Project, were completed. Production and testing of flight models
have got underway and production and testing of flight models have commenced. The
TÜRKSAT-6A CONTROL PANEL X-Band Payload, which is under development, will be integrated into Turkey’s first national
Communication Satellite, TÜRKSAT 6A, and will be sent into orbit.

In addition, within the scope of the project’s technology acquisition obligation, low noise
amplifier development activities carried out with METEKSAN A.Ş. were completed.
ASELSAT CubeSat Development

Within the scope of the project, the Department of Aerospace Engineering at Istanbul
Technical University (ITU), and the Department of Mechatronics Engineering at Atılım
University serve as subcontractors for ASELSAN.
ASELSAN continued to carry out system engineering and project management activities. In
this process, the design activities for the development of X-Band Antenna and digital cards,
for which space history will be brought in, were concluded and production of the flight
model continues.
Engineering model acceptance activities for the cube satellite platform developed by
the ITU Aerospace Engineering team were completed in 2019 and flight model studies
will begin in early 2020. The acceptance of the domestic reaction wheel developed by
the Atılım University was cleared by ASELSAN and this part of the project was completed
successfully.
Development of Space Qualified Ku Band Receiver Equipment for TÜRKSAT 5B

Within the scope of the domestic contribution for the Turksat 5B Project, the project
was launched to bring space heritage to the Ku Band receiver equipment developed
by ASELSAN. The Critical design review phase was completed in 2019. In addition, the
production of the engineering qualification model of the equipment was completed and
the qualification tests of this model are being conducted.
Development of Space Qualified Ku Band Low Noise Amplifier (LNA) Equipment for
TÜRKSAT-5B
Within the scope of the domestic contribution for the Turksat 5B Project, the project was
launched to bring space heritage to the Ku Band Low Noise Amplifier (LNA) Equipment
developed by ASELSAN. The critical design review phase was completed in 2019. In
addition, the production of the engineering qualification model of the equipment and
the hybrid module developed for the flight model were completed, and the tests of these
modules are being conducted.
Development of the UHF-Band Digital Channeling Equipment Engineering Model

ASELSAN develops UHF band digital channeling equipment in accordance with the flexible ASELSAN CUBESAT
payload structure to be used in the UHF band payloads of forward-looking communication
satellites. As of 2019, a functional model was produced to verify the main functions of
the equipment and the tests of this model were completed. Radiation card production
designed for the testing of memory elements, which are critical in terms of radiation, were
completed.

JEMUS INSTALLATIONS REACHED 68
PROVINCES. THE JEMUS SYSTEM REACHED
83% COVERAGE OF TURKEY’S LANDSCAPE
AREA.
PUBLIC SAFETY COMMUNICATION SYSTEMS
GENDARMERIE GENERAL COMMAND

GENDARMERIE INTEGRATED COMMUNICATION AND INFORMATION SYSTEM ( JEMUS)
As of the end of 2019, customer acceptance had been realized in 5 new provinces in
the JEMUS Project, and customer acceptances were realized in all provinces under the
Gendarmerie Regional Commands of Erzurum, Giresun and Tokat. With the completion of
the installation of the system in Erzurum, the 68th province system was commissioned.
Through JEMUS, which is the largest public safety communication system established in
Turkey, inquiries can be made for criminal investigations, lost material, driver’s licenses,
vehicle licenses, license plates and weapon licenses from central databases. With the
156 Gendarmerie Help line, messaging, patrol tracking, the geographical information
system, radio call and follow-up software used in the operations centers in the provincial
gendarmerie commands, along with fast and effective security-intervention services can be
provided to citizens.
GENERAL DIRECTORATE OF POLICE (GDP)
FILEDS OF ACTIVITY
NATIONAL ENCRYPTED DMR DIGITAL MOBILE RADIO SYSTEM
The National Encrypted DMR (Digital Mobile Radio) System is a digital communication
system that provides encrypted communication of GDP (General Directorate of Police).
In addition to short messaging and criminal inquiry practices, the DMR communication
technology developed by ASELSAN offers important advantages of a software switchboard,
vehicle tracking and communication recording.
Deliveries were made in May 2019 under the contract for additional material purchase
signed with the GDP in August 2018. The delivered materials will be used for updating
work on the East and Southeast Provincial DMR systems. Update delivery work in the
Şanlıurfa and Batman provinces had been completed as of December 2019.
With the contract added to the project, In December 2019, the Conventional Wide Area
DMR System in the Van Province was converted into a DMR Trunk Wide Area Coverage
System in the city center.
THE TURKISH ARMED FORCES (TAF)

SECURE CELLULAR COMMUNICATION SYSTEM (SCCS) EXPANSION PROJECT
The delivery of the Secure Cellular Communication System (SCCS), which is based in the
Ankara, Istanbul and Izmir provinces and serves the personnel of the General Staff and its
affiliates that are the Land, Air and Navy Commands, has been largely completed and work
on the increases made in the contract is continuing.
The 3700 Series Vehicle Radio Development Project

The 3700 series vehicle radio, which is in the verification stage, can be configured to
operate in the APCO25 Phase-1 or DMR systems as a trunk or conventional radio, in
addition to being robust, reliable, stylish and easy to use with a colour display. Designed in
accordance with the needs of public safety users, the device, which operates as encrypted
or unencrypted, includes many options of hardware for features such as GPS, Bluetooth
and Wi-Fi.

The 3700 Series Handheld Radio Project ASELSAN IS THE GUARANTEE OF PUBLIC
In October 2019, APCO 3700 Handheld radios were produced and delivered to the user SAFETY WITH ITS PUBLIC SAFETY
for the Presidential Protection Department. A large number of DMR 3700 Handheld radios
were produced in December 2019 and delivered to the user in June 2019 based on the
COMMUNICATION SYSTEM SOLUTIONS.
contract made with the GDS Communications Department. Sales were carried out to
municipalities through ASELSANNet.
Digital Communication Network (DCN)

Within the scope of the contract with the Defence Industry Presidency (DIP), the UHF
DMR Trunk Digital Radio System - which is urgently needed by the General Directorate of
Security - is being installed in the Ankara and Istanbul provinces. The system is planned to
be commissioned in Ankara in the middle of 2020 and in Istanbul at the end of 2020.
The system, which will provide uninterrupted and reliable communication on a 24/7 basis
in all difficult conditions, including natural disasters, will be the most important assistant
for law enforcement units in successfully fulfilling their duties by integrating audio and
data applications. The digital communication network, which will be installed as multi-
base station and multi-channel, will also be one of the few DMR systems in the world of
such a size.
Coastguard Digital Reliable Communication System (SAHMUS)

Within the scope of the Fifth Phase of the SAHMUS Project, repeater centers were
established in the Coastguard Black Sea Regional Command responsibility area (the
Eastern Black Sea Region). The hardware-based switching system, which is available in all
regional commands, was updated with a new generation software-based IP system. One
repeater center was added to the Zonguldak, Edirne and Çanakkale provinces in order
to expand its coverage area. The final acceptance of the system was completed and the
warranty process got underway.
In order to improve the coverage area, feasibility studies are ongoing to eliminate blind
areas by conducting coverage testing with floating elements connected to four regions
with user units.
The Digital Encrypted (SK2) Radio Deliveries

In 2019, SK2 radios were delivered to the TAF Land Forces, Air Forces and Special Forces,
and the Gendermarie General Command. At the same time, digital encrypted radio
deliveries were made to various units together with leading defence industry companies.

INTEGRATION OF THE REPUBLIC OF TURKEY, MINISTRY OF HEALTH
RELAYS ON JEMUS SITES ENSURES SEAMLESS COMMUNICATION
BETWEEN THE 112 EMERGENCY COMMAND CENTER AND THE 112
EMERGENCY HEALTH SERVICES STATIONS AND AMBULANCES.
The Republic of Turkey, Ministry of Internal Affairs, Disaster and Emergency
Management Directorate Warning and Alarm System
Within the scope of the Warning and Alarm Siren System contract signed on 19 February,
2019 with the Directorate of Disaster and Emergency Management, siren systems will be
installed at many locations in the Gaziantep, Hatay and Kilis provinces. Communication
between the siren units in the field and the centers will be carried out by using the JEMUS
infrastructure. Within the scope of the project, which is planned to be completed in
2020, the installations of Gaziantep and Kilis province were completed and work on the
installations is continuing.
Expansion and Revision of the Istanbul Metropolitan Municipality Wide Area

Coverage Radio System
Within the scope of the project, the radio communication of the Istanbul Metropolitan
Municipality within the provincial borders of Istanbul has been converted into a digital
system. The wide radio coverage to be provided within the borders of the province will
provide a great deal of comfort in the communication of municipal units, paving the way for
more efficient service and ensuring uninterrupted communication.
The Republic of Turkey, Ministry of Health 112 Emergency Health Services

Communication System
Within the framework of the protocol signed between the Republic of Turkey, Ministry
of Health and the Gendarmerie General Command, communications between the
command center and the 112 emergency health services stations and ambulances have
been seamlessly provided since 2013 by placing the Republic of Turkey, Ministry of Health
relays at JEMUS sites. In 2019, additional terminal supplies were provided for use in the
infrastructure and were operated successfully the Republic of Turkey, Ministry of Health.
Export Sales of APCO and Digital Encrypted (SK2) Radios
FILEDS OF ACTIVITY
The deliveries under the technology transfer contract signed with the Pakistan National
Radio Telecommunications (NRTC) Company continued with an increasing volume in
2019.
Encrypted APCO radios were delivered to the Pakistan Armed Forces.
Deliveries within the scope of the technology transfer contract signed between ASELSAN
and the Kazakhstan ASELSAN Engineering (KAE) Company for the production of APCO
radio devices within the KAE also continued in 2019.
Within the scope of the military financial cooperation agreement signed between the
Government of the Republic of Turkey and the Government of the Republic of Northern
Macedonia and the Government of the Republic of Somalia, the Contract on the Supply of
ASELSAN Telecommunications Materials was signed.
Digital Tachograph Device (DTD) - Smart Tachograph Device (STD) Development Projects
ASELSAN sells the STC-8250A Digital Tachograph Device (STCv1.1) with the EAL4+ security
certificate obtained from the testing and approval authorities in Europe in Turkey and
abroad. First export delivery has been realized to Spain.
In accordance with the European Union’s regulation no. 165/EU/2014, activities as part
of the Smart Tachograph Device Development Project, which was launched to meet the
needs for Smart Tachograph Device (STD) that will arise in the EU and in countries party
to the AETR (European Agreement concerning the Work of Crews of Vehicles engaged in
International Road Transport), including Turkey, are continuing.
The new smart tachograph devices to be developed include a GNSS (Global Navigation
Satellite System) module for automatic recording of driving start / end coordinates and
location information at certain intervals, a DSRC (Dedicated Short Range Communication)
module to detect violations early as well as an optional Bluetooth communication module
for the ITS (Intelligent Transport Systems) features. In addition, stronger crypto algorithms
will be used in the smart tachographs to be developed.

MOBILE COMMUNICATION SYSTEMS IN 2019, 316 ULAK BASE STATIONS STARTED

ACTIVE SERVICE ON COMMERCIAL SITES OF
Fourth Generation (4.5G/LTE-A) Communication System Development (ULAK) GSM OPERATORS.
Project
Within the scope of the Commercial and Public Safety LTE-Advanced Macrocell Base
Station development activities, by taking into consideration technological developments
and operator needs, design and development activities were carried out for new releases
including new features. After successful results were obtained in the live network tests
performed on the operator sites, installation work was carried out in different provinces
in the Eastern Black Sea and Eastern Anatolia regions and were put into use. ULAK base
stations delivered within the scope of the Universal Service Projects operate from 649
sites throughout Turkey. The ULAK Base Stations delivered under the contract signed
with Vodafone operate on 250 commercial sites. Business development and production
activities for new orders to be used in operator networks are continuing.
The delivery of the second version of the LTE-Based Military Communication System
(Broadband Waveform) was completed. The development, integration and testing
activities for the final version of the LTE-Based Military Communication System continued.
CRYPTO AND INFORMATION TECHNOLOGIES
TAYAS (Tactical Local Area Network System)

TAYAS is a system which has been developed in order to meet the wired and wireless local
area network communication needs of the Turkish Land Forces Command in the tactical
field. The system consists of software and hardware installed in local area network, which
will provide communication of the command control and information systems used
in battlefield with TAFICS (Integrated Communication System) at a strategic level, the
TASMUS (Tactical Area Communication System) at a tactical level and with satellite systems
in space. Wireless communication will be secured with a “National Secret” encryption
algorithm. For this purpose, an encrypted wireless network access device (KKAC), an
encrypted terminal network connection device (TKABC) and dedicated wireless network
management software have been developed by ASELSAN specifically for the project.
The installation and acceptance of cable systems, which make up the first two phases of
the project, belonging to certain units, were completed and delivered. The design and
production work of the KKAC and TKABC devices, which will be delivered in the third
phase, were completed and factory acceptance processes are ongoing.

WITHIN THE SCOPE OF THE GOAL THE SPATIAL ADDRESS RECORDING SYSTEM (SARS) DATA GENERATION AND DEPLOYMENT SYSTEM
OF PRODUCING COMMUNICATION PROJECT
In 2019, the system was commissioned in all authorized administrations (Municipalities,
NETWORK COMPONENTS FROM Provincial Special Administrations, Organized Industrial Zones, Free Zones) in 29 provinces
NATIONAL RESOURCES, ASELSAN where the work was completed. This took the number of provinces where the system was
DEVELOPED A NATIONAL ROUTER commissioned to 39 since the beginning of the project. Transactions related to address
WHICH ALSO MEETS MILITARY data in the provinces where the system was commissioned are carried out on the SARS
STANDARDS. interfaces. Work is underway in 35 provinces.
The 112 PROJECT

Within the scope of the New Generation 112 Emergency Call Center Second Phase Project,
acceptance procedures belonging to the two provinces were carried out.
THE ETHERNET SWITCH FAMILY

ASELSAN, which produces communication network components with national resources,
developed an ETHERNET Switch Family under the relevant project. The ETHERNET Switch
Family has uses for both military applications and commercial and industrial applications,
and executes switching functions at Layer 2 and the task of switching and collection/
distribution for IP packets in the IP-based communication systems. The design and testing
activities of the ETHERNET family products were completed and prototype production was
realized.
The deliveries of the 8 port Industrial Ethernet Switch were successfully completed within
the scope of the Urban Security Management System (USMS) and the Plate Recognition
System (PRS) Project in order to meet the needs of the General Directorate of Security. At
the same time, within the scope of the Azra Project, the Digital Communication Network
Project and the Istanbul Metropolitan Municipality Radio System Project, the devices were
positioned for project needs.
NATIONAL ROUTER
Within the scope of the goal of producing communication network components with
national resources, ASELSAN developed a national router compliant with military
standards. Within the scope of the National Router Project, models which would work at
FILEDS OF ACTIVITY
the Core and Distribution/End points were introduced. The National Router is both IPv4
and IPv6 compliant and offers a wide array of complementary protocol supports. The Core
National Router has a switching speed of up to 48 Gbit/s; the Distribution/End National
Router has a switching speed of up to 32 Gbit/s.
The Core and Distribution/End point National Routers were delivered to the customer
as part of the TASMUS Project and added to the TAF inventory. National Routers were
produced for the AZRA project and were exported to Azerbaijan.

FILEDS OF ACTIVITY

IN THE FIELD OF DEFENSE SYSTEMS
TECHNOLOGIES, ASELSAN CARRIES OUT WORK
FOR HIGH-TECH PRODUCT SOLUTIONS IN THE
FIELDS OF LAND SYSTEMS, WEAPON AND WEAPON
FIRE CONTROL SYSTEMS, COMMAND CONTROL,
COMMUNICATION AND COMPUTER SYSTEMS,
MAIN BATTLE TANK SYSTEMS, SMART MUNITIONS
AND ACTIVE PROTECTION SYSTEMS, AIR AND
MISSILE DEFENCE SYSTEMS, AIR DEFENCE GUN
SYSTEMS, AIR DEFENCE COMMAND CONTROL
SYSTEMS, BALLISTIC MISSILE DEFENCE SYSTEMS,
ANTI-DRONE SYSTEMS, NAVAL COMBAT SYSTEMS,
TORPEDO AND UNDERWATER SYSTEMS.
DEFENCE SYSTEM TECHNOLOGIES

BUSINESS SECTOR
FILEDS OF ACTIVITY

DEFENCE SYSTEM TECHNOLOGIES BUSINESS SECTOR
ASELSAN, in 90’s having limited existence on naval platforms, has reached to platform
diversity including surface, sub-surface and naval air platforms and extend such a
magnitude and entirety, by widening its existence from single product to entire combat
system provider. ASELSAN provides effective and reliable products to mariners for their
long and tough naval missions.
NAVAL SYSTEMS
ASELSAN, as a combat systems provider for naval platforms of Turkish Naval Forces and
many friendly countries, while providing present needs for the naval operational domain
also carrying on Research and Development activities for shaping future naval combat area.
COMBATANTS
In the MILGEM Combat Systems Project, the fourth ship TCG KINALIADA (F514), which was
equipped with more advanced systems, was commissioned in September 2019. Within the
scope of the MİLGEM Combat System Supply Project, ATMACA, surface to surface anti-ship
missile for naval surface platforms were integrated onto the TCG KINALIADA for the first
time.
ASELSAN shall supply Combat Systems for four Corvettes to be constructed for Pakistan
Navy. In this scope, a contract was signed between ASFAT A.Ş. and ASELSAN on 14th
November, 2019.
AMPHIBIOUS VESSELS
The combat system design, sub-system development/supply and integration activities
for the Multipurpose Landing Helicopter Dock (LHD) Project is carried on by the Business
Partnership, established by ASELSAN and HAVELSAN. In this context, Factory Acceptance
Tests (FAT) of systems have been successfully completed as of December 2019.

ASELSAN, IN 90’S HAVING LIMITED AUXILIARY SHIPS
EXISTENCE ON NAVAL PLATFORMS, HAS In the scope of “Replenishment at Sea and Combat Support Ship (DIMDEG)” contract,
under the responsibility of ASELSAN-HAVELSAN Business Partnership as combat system
REACHED TO PLATFORM DIVERSITY main integrator, Detailed Design Phase activities are carried on.
INCLUDING SURFACE, SUB-SURFACE AND
NAVAL AIR PLATFORMS AND EXTEND SUCH Test and Training Ship (TTS) Mission and Marine Systems Factory Acceptance Tests (FAT)
A MAGNITUDE AND ENTIRETY, BY WIDENING activities started in 2019.
ITS EXISTENCE FROM SINGLE PRODUCT
SURFACE NAVAL PLATFORMS MODERNIZATION PROJECTS
TO ENTIRE COMBAT SYSTEM PROVIDER. System Requirement and Critical Design Review phases completed in 2019 in scope of the
ASELSAN PROVIDES EFFECTIVE AND Barbaros Class Mid-Life Modernization Contract which was signed between Presidency of
RELIABLE PRODUCTS TO MARINERS FOR Defense Industries and ASELSAN-HAVELSAN Business Partnership.
THEIR LONG AND TOUGH NAVAL MISSIONS.
Within the Identification Friend or Foe (IFF) Naval Platforms Integration Project, Mod
5/S capability long range indigenious IFF Interrogator and Transponder devices will be
integrated to 23 different naval Platforms (87 ships) of the Turkish Naval Forces. The
Integration will start in April 2020 simultaneously with NATO countries. Project Critical
Design Phase, including platform specific integration solutions, is completed in November
2019. The software/hardware production of IFF Mod 5 Control and Management System is
continuing.
WEAPON/FIRE CONTROL SYSTEMS

Within the scope of domestic and international projects, 40 mm and 76 mm Naval Gun Fire
Control Systems production and delivery activities have been conducted and development
activities for 5/54 Naval Gun Fire Control System have been carried on.
The ATMACA Block-1 Stage 2 Project, where a surface to surface anti-ship missile for I-Class
Frigates are developed and produced, has been carried out since October 2018. In the
scope of the project, ASELSAN is responsible for the Fire Control System and also for RF
Seeker, Missile Mission Computer and Power Distribution Unit of the ATMACA G/M. On
ASELSAN, AS A COMBAT SYSTEMS PROVIDER November 3, 2019, the ATMACA G/M system successfully fired from KINALIADA, namely
FOR NAVAL PLATFORMS OF TURKISH NAVAL the first indigenous naval guided missile has been fired from the indigenously designed
corvette. With this proud development, an important step has been taken within the scope
FORCES AND MANY FRIENDLY COUNTRIES,
FILEDS OF ACTIVITY
of ATMACA system qualification.
WHILE PROVIDING PRESENT NEEDS
FOR THE NAVAL OPERATIONAL DOMAIN Within the scope of the Anti-Submarine Rocket Launching System (ASRLS) Supply
ALSO CARRYING ON RESEARCH AND contract signed with ROKETSAN in the last quarter of 2018, 12 ASRLS will be produced
DEVELOPMENT ACTIVITIES FOR SHAPING and integrated onto patrol boats of Turkish Navy. In this context, necessary supply and
production activities have been performed in 2019.
FUTURE NAVAL COMBAT AREA.

TORPEDO AND UNDER WATER SYSTEMS
ASELSAN, with knowledge creation, making necessary investment and by having eligible
personnel, has become one of the key players in the global sonar league.
ASELSAN, within the scope of Torpedo Counter-Defense Systems, provides o complete

platform protection solution including detection, soft and hard kill measures and
having firm steps to have a remarkable position in the global market by satisfying global
requirements as well as the domestic ones.
SUBMARINE AND SONAR SYSTEMS

Within the scope of New Type Submarine Project (NTSP) for the 1st Submarine, Factory
Acceptance Tests of Ship’s Announcing System (SAS), Electronic Support Measures
(ESM) System, Sound-Powered Telephone System & Telephone System and Integrated
Communication System (Communication Equipment, Internal Communication System
and SHF SATCOM) was completed successfully in 2019.
In addition to the new contracted shipbuilding projects in 2019, 14 KULAÇ Echo Sounder
Systems contract has been signed within the scope of a modernization project. Both
shipbuilding and modernization projects, totally 20 KULAÇ Echo sounder Systems,
including 4 KULAÇ Echo sounder Systems export for Pakistan MİLGEM, will be produced ASELSAN, WITH KNOWLEDGE CREATION,
and integrated into platforms. MAKING NECESSARY INVESTMENT AND BY
In the scope of BARBAROS Class Frigate Mid-Life Upgrade, following the successful
HAVING ELIGIBLE PERSONNEL, HAS BECOME
completion of design phase, a prototype Hull Mounted Sonar System has been made ready ONE OF THE KEY PLAYERS IN THE GLOBAL
to carry out system verification tests. SONAR LEAGUE.
In the scope of MİLGEM Project, for TCG KINALIADA, Sea Acceptance Tests of KULAÇ Echo
sounder System, Hull Mounted Sonar and Underwater Telephone System was completed
successfully in 2019.
Preveze Class Submarine Mid-Life Modernization Contract was signed between Presidency
of Defense Industries and ASELSAN-STM-HAVELSAN-ASFAT Business Partnership on 8
February 2019. Activited are performed regarding the System Requirement Review phase.
ASELBUOY Passive Sonobuoy development efforts has continued and launch trials from
sea and air platforms were conducted in 2019.
In 2019, Turkish Navy Forces got involved as the End-User to the Low Frequency Active
Sonar System Development Project which had started at the end of 2018. The development
studies are being carried out in accordance with the needs of Turkish Navy Forces.
Initiated with internal R&D funding and supported by TUBITAK 1501 Industrial R&D
Projects Grant Programme, Underwater Acoustic Surveillance Network Project covers

ASELSAN, WHILE WORKING ON THE ongoing development efforts on communication frequency optimization for underwater
CURRENT NEEDS OF NAVIGATION AND acoustic modems, acoustic signal processing algorithms and mobile underwater vehicle
developments.
PLATFORM MANAGEMENT SYSTEMS FOR
THE NAVAL PLATFORMS, ON THE OTHER TORPEDO AND TORPEDO COUNTERMEASURE SYSTEMS
HAND HAVING ACTIVITIES ON CREATING Harbor and Sea Acceptance Tests of the HIZIR Torpedo Countermeasure System for TCG
KNOWLEDGE AND SUB COMPONENTS FOR KINALIADA were completed within the scope of the MILGEM Project. Factory Acceptance
AUTONOMOUS NAVAL PLATFORMS WHICH Tests (FAT) was also successfully completed for LHD Project. HIZIR System will also be
exported for the first time as part of the Pakistan MILGEM Corvette Project contract signed in
WILL BE A FUTURE FACT IN THE NAVAL 2019.
DOMAIN.
ASELSAN is supplying its ZARGANA range of acoustic torpedo countermeasure jammers
and decoys for the Indonesian Navy’s (Indonesian National Armed Forces) submarines.
Regarding the orders of Indonesian Navy on January 2019, Factory Acceptance Tests
completed successfully and the decoys delivered on July 2019.
ASELSAN will provide its ZARGANA torpedo countermeasure system for the Pakistan Navy’s
as part of the project “Modernization of class Agosta 90B submarines” under contract
of STM. With this delivery, Pakistan will be the second country to acquire the torpedo
countermeasures systems after Indonesia.
NAVIGATION AND PLATFORM MANAGEMENT SYSTEMS

ASELSAN, while working on the current needs of navigation and platform management
systems for the naval platforms, on the other hand having activities on creating knowledge
and sub components for autonomous naval platforms which will be a future fact in the naval
domain.
NAVIGATION SYSTEMS
Research and development activities are completed for the ASELSAN MİTOS™ Electronic
Chart Display System product family with Portable WECDIS system and 10 set delivered
to Turkish Navy. Platform integration and test activities are ongoing as planned. ASELSAN
MİTOS™ WECDIS Factory Acceptance Tests are completed for LHD and Test and Training
FILEDS OF ACTIVITY
Ship. ASELSAN MİTOS™ WECDIS activities are ongoing as planned for Replenishment at Sea
and Combat Support Ship (DIMDEG).
The production of DEMES Marine Meteorology System which is designed with modular and
configurable software architecture, has been completed for TTS and LHD Projects. Beyond
this, System for TTS Project FAT has been successfully completed and ready for delivery.
PLATFORM MANAGEMENT SYSTEMS

Concept development of the ASELSAN Smart Platform Management Systems activities
are carried on. ASELSAN Integrated Bridge System activities are ongoing for DIMDEG as
planned.

PROPULSION AND DRIVE SYSTEMS

DİKONS Dynamic Positioning System, software and hardware design activities has been
carried on. Besides, studies on propulsion system configuration definition and algorithm
development activities performed.
AIR AND MISSILE DEFENCE SYSTEMS
With more than thirty years of experience of air defence and having produced Turkey’s first
air defence system, ASELSAN develops unique air and missile defence systems. ASELSAN’s
ability to single-handedly develop and produce the sensor, command control, firing control
and communication devices of critical importance represent an important advantage in the
field of air defence. With its experience in systems engineering, system level analysis and
modeling and system development, ASELSAN is also ready to undertake important tasks in
Turkey’s ballistic missile defence system solution.
SHORT AND MEDIUM RANGE AIR DEFENCE MISSILE SYSTEMS (HISAR-A AND HISAR-O)
The Short and Medium Range Air Defence Missile Systems will fulfill its duty to neutralise
low- and medium- altitude threats within the scope of point and regional air defence.
Within the scope of the HİSAR-A Project, the Self Propelled Autonomous Short Range
Air Defence Missile System (SPASRADMS) and Missile Launching System, and the Short
Range Air Defence Missile which can be launched from these two configurations will be
developed and produced. The product and production line qualification tests will be also
performed. The HISAR-O project includes the development, production and the product/
production line qualifications of the Battalion Fire Control Center, the Battery Fire Control
Center, Medium Range Air Defence Radar, Air Defence Early Warning Systems with Tactical
Data Link Interface (Link-16), the Electro-Optical System, the Missile Launching System,
the Missile Transportation and Loading System and the Medium Range Air Defence Missile.
At the same time, the Missile Transportation Loading System and Education Center are also
developed as supportive equipment in the HISAR projects.
System Operation Tests were carried out in the HİSAR-A Project. The HİSAR-A Firing
Test, conducted on 8 March 2019, was successfully performed by using the Fire Control
Equipment (FCE) and Missile Launching System. To test the system’s maximum range and
altitude performance to its maximum capacity, two high speed target aircraft were used in
attack scenarios approaching from different ranges and altitudes.

On 3 October 2019, a vertical test firing was successfully carried out through the HİSAR-A
SPASRADMS. Meanwhile, the WarHead Firing Test was conducted through the HİSAR-A
SPASRADMS on 12 October 2019. The effectiveness of the system at maximum range and
altitude was tested with the successful destruction of the high speed target aircraft. The
company is now ready for the Mass Production Stage within the scope of the HİSAR-A
Project.
In the HİSAR-O Project, Fireless System Operation Tests were completed and the
qualification will be completed with the Fire System Operation Tests to be carried out. In
the fire test campaign in May 2019, the HİSAR-O System Level Closed Loop fire test activity
was carried out through the Missile Launching System.
LONG RANGE REGION AIR AND MISSILE DEFENCE SYSTEM PROJECTS

In January 2018, within the scope of Long Range Region Air and Missile Defence System
Projects, two separate contracts were signed in order to meet the requirements of the
Turkish Armed Forces.
Under the “Concept Definition Project” contract, which extends for 18 months and has
been undertaken by the ASELSAN-ROKETSAN-EUROSAM Business Partnership, system
concept definition work is carried out. Within the scope of the SİPER Project, which has
been undertaken by the ASELSAN-ROKETSAN-TÜBİTAK-SAGE joint venture, the design,
development, prototype production, integration, testing and acceptance of the system will
be carried out. The activities that are carried out in both projects continue in accordance
with project implementation schedules.
FIRE CONTROL DEVICE (FCD) SET AND 35 MM MODERNIZED TOWED GUNS (MTG)
The Fire Control Device (FCD) Set offers a state-of-the-art, low-altitude air defence
solution for performing effective air defence of critical facilities and fixed military units
against modern air threats such as air-to-surface missiles, cruise missiles and unmanned
aerial vehicles. The typical FCD Set consists of a Fire Control Device (FCD), two 35 mm
Modernized Towed Guns (MTG) and a Low Altitude Air Defence Missile Launch System.
IN JANUARY 2018, TWO SEPARATE
The FCD Set can work with the Air Defence Early Warning and Command Control System
CONTRACTS WERE SIGNED WITHIN THE (HERİKKS) in an integrated manner. It can also carry out the functions of target detection,
SCOPE OF LONG RANGE REGIONAL AIR AND
FILEDS OF ACTIVITY
chase and prevention autonomously as a set.
MISSILE DEFENCE SYSTEM PROJECTS IN
ORDER TO MEET THE NEEDS OF THE TURKISH 35 MM AIR DEFENCE SYSTEM MODERNIZATION (ADSM) AND AIRBURST AMMUNITION SUPPLY (ABAS)
PROJECT CONTRACT
ARMED FORCES.
In order to meet the requirements of the Land Forces Command and Air Force Command, a
mass production contract covering the production of Modernized Towed Guns (MTG), Fire
Control Device (FCD) and airburst ammunition was signed at the end of 2017. Under the
contract, mass production of the Battery Command and Control Center to be developed
for the Land Forces Command and the Battery Command and Control Operations Center
to be developed for the Air Forces Command will be realized. The project’s implementation
schedule began in June 2018 and work on mass production continued extensively
throughout 2019. The “1st Option Package”, which includes additional purchases, was
included in the contract in 2019.

GÖKDENİZ CLOSE-IN AIR DEFENCE SYSTEM

Together with the 35 mm Airburst Ammunition (ATOM) developed by ASELSAN, the
GÖKDENIZ Close-In Air Defence System is a point air defence system that provides
activity against anti-ship missiles targeting the ship the system is stationed on. The work
to be carried out for the productization of the GÖKDENIZ Close-In Air Defence System
in accordance with the needs of the Naval Forces Command was added to the 35 mm
Air Defence System Modernization and Airburst Ammunition Supply contract as the
Technology Acquisition Obligation.
GÖKDENİZ CLOSE-IN AIR DEFENCE SYSTEM EXPORT CONTRACT

The contract for the first sale and export of the GÖKDENIZ Close-In Air Defence System to
an Asian country was signed in July 2019. Under the contract, one GÖKDENIZ Close-In Air
Defence System will be delivered.
THE KORKUT LOW ALTITUDE AIR DEFENCE WEAPON SYSTEM WITH SELF PROPELLED GUN
The KORKUT System will serve as teams consisting of three Weapon System Vehicles (WSV)
THE CONTRACT FOR THE FIRST SALE AND
and a Command and Control Vehicle (CCV). Each KORKUT team can operate in integration EXPORT OF THE GÖKDENIZ CLOSE-IN
with the Air Defence Early Warning and Command Control System (HERİKKS), as well as WEAPON SYSTEM (CIWS) FOR AIR DEFENCE
autonomously perform the functions of target detection, chase and prevention as a team. TO AN ASIAN COUNTRY WAS SIGNED IN JULY
The KORKUT System offers an effective air defence solution against current air threats such 2019. WITHIN THE SCOPE OF THE CONTRACT,
as cruise missiles, air-to-surface missiles and unmanned aerial vehicles when used together
with airburst ammunition.
ONE GÖKDENIZ CIWS WILL BE DELIVERED.
MASS PRODUCTION OF THE KORKUT SYSTEMS

Within the scope of the contract including the supply of KORKUT Systems, which was
signed in 2016 in order to meet the needs of the Land Forces Command, 13 Weapon
System Vehicles and 4 Command and Control Vehicles were successfully produced and
delivered in 2019. Deliveries of the systems will continue between 2020 and 2022.
ELECTROMAGNETIC LAUNCH SYSTEM DEVELOPMENT STUDIES

The Electromagnetic Launch (EML) technology is a groundbreaking technological area
which presents an alternative to propulsion systems using rocket motors and weapon
systems based on firing ammunition from the barrel by using proppelant. Thanks to the use
of the EML in weapon system design, much higher barrel exit velocities can be achieved
than weapons fired from a conventional barrel, and the ammunition can be fired over much
longer ranges. In order to increase its gains in this field, ASELSAN continues studies on
this system and subsystem development with its own resources and with support from
TÜBİTAK TEYDEB. The ASELSAN Electromagnetic Launch System Development laboratory,
equipped with advanced development and testing infrastructures to advance these studies
further, was opened on 22 November 2019. In the firing tests carried out within the scope
of the opening, a record was broken by achieving the highest level of barrel exit energy and
efficiency in this field in Turkey.
NSPA STİNGER LAUNCHER SYSTEM PROJECT

The Stinger Launcher System Mid-Life Extension and Service Support Contract was
signed between the NATO Procurement and Supply Agency (NSPA) and ASELSAN in
May 2019. Within the scope of the project, the acceptance firings for the Stinger Launch
System delivery were successfully conducted on the Greek Island of Crete, with the NATO
Missile Firing Installation (NAMFI) was successfully conducted between 25 August and 4
September 2019.
IHTAR ANTI-DRONE SYSTEM

Three separate contracts were signed on 30 May 2019, 28 June 2019 and 9 October 2019
under the Mini UAV Detection and Prevention System (İHTAR). The Temporary Acceptance
Tests of the second project for the urgent needs of the Turkish Armed Forces began in
September 2019 and were successfully completed in early October. The systems are
actively used in the field. Intensive work is underway for the delivery of the first and third
contracts and deliveries will be carried out in the first quarter of 2020.

LAND SYSTEMS
ASELSAN continued work on the design, development, modernization, production and

logistic support activities for Land Systems. Our extensive range of unique products, which
have been proven in the field, along with our more than thirty years of experience in Land
Systems allows us to rapidly offer solutions tailored to the needs of the Turkish Armed
Forces, the Gendarmerie General Command, the General Directorate of Security and the
armed forces of friendly/allied foreign countries.
ARTILLERY, HOWITZERS, MORTARS AND ROCKET LAUNCHER FIRE DIRECTION SYSTEMS

The design, production and delivery activities of the Fire Direction Systems, which enable
the artillery, howitzer, mortar and rocket launcher troops to perform their missions in a
faster and more precise manner by providing the automation of the technical fire direction
process, were carried out.
ARMORED VEHICLE EQUIPMENT AND MODERNIZATION

The Special Purpose Tactical Wheeled Armored Vehicle Mission Equipment Supply Contract
was signed with FNSS Savunma Sistemleri A.Ş. on 25 December 2019. Under the contract, 5
different Mission Equipment configurations including Command Control, Communication,
the SARP and NEFER Weapon Turrets, Navigation, Electro Optics, and Radar systems will
be produced by ASELSAN to be integrated to 100 of the 6x6 and 8x8 vehicles that are
included in the project. With the related Mission Equipment, the command control and
communication needs of the combat troops will be met. An effective reconnaissance activity
will be carried out through the Remote Controlled Weapon Turrets, Navigation, Electro
Optics and Radar systems.
On 30 December 2019, the Armored Combat Vehicle Modernization Project Contract was
signed with the Defence Industry Presidency. Within the scope of the project, 133 armored
combat vehicles will be modernized and the NEFER Turret and additional task equipment
will be integrated. With additional task equipment, the Laser Warning System, Close Range
Surveillance System, Driver Vision System, Direction Finding and Navigation System, Air
Conditioning System, Heating System, Fire Extinguishing and Explosion Suppression
System will be integrated, while the Armor Protection and Mine Protection levels will be
FILEDS OF ACTIVITY
increased.
COMBAT SUPPORT SYSTEMS

Thanks to the capabilities brought into modern military vehicles and all kinds of platforms
with domestic and national products developed by ASELSAN, our security forces have been
able to adapt to the more challenging and variable warfare conditions of the current era.
In this context, work was conducted on subjects such as situational awareness, artificial
intelligence, augmented reality, real-time vehicle tracking, target tracking / analysis and
safe driving techniques. For land platforms, efforts continued to develop the system
architecture.
RECONNAISSANCE SURVEILLANCE SYSTEMS

The ASELSAN Reconnaissance Surveillance Systems closer identification and recognition of
elements detected from a long range by radar, through the electro optical systems. Thanks
to the integration of Command Control Systems, the Reconnaissance Surveillance Systems
can transfer the location information pertaining to the targets to the command center over
computers and radios. With the support of high-tech communication systems, the systems
have the ability to transfer a high quality image of the target to the command center.
International demonstrations and field testing activities of the ASELSAN Reconnaissance

Surveillance Systems were carried out.
AMMUNITION TRANSFER SYSTEMS

Production activities of the Ammunition Transfer System developed by ASELSAN and which
was integrated into the POYRAZ Ammunition Resupply Vehicle were completed. It was
delivered to the Land Forces Command troops having been integrated into the POYRAZ
vehicle and remains under warranty.

MILITARY WEARABLE EXOSKELETON SYSTEM

The Military Wearable Exoskeleton System, which has been under development within
ASELSAN since 2017, aims to improve the performance of infantry by actively supporting
the infantry’s body during the operation and helping them carry their kit. In 2019, studies
were carried out to improve system effectiveness and its adaptation to the person, and
manned testing and verification activities were carried out.
COMMAND CONTROL, COMMUNICATION AND COMPUTER SYSTEMS
ASELSAN offers Fire Support, Reconnaissance/Surveillance and Intelligence, Integrated

Battlefield Management, Electronic Warfare, Strategic Operational and Tactical Level
Command Control Information Systems and Tactical Communication Systems in its wide
product range with the use of modern technologies for the service of its users. ASELSAN
provides the command and control hardware, software and communication systems which
allow vehicles in the inventory of the Land Forces Command, the Gendarmerie General
Command and the General Directorate of Services, or the vehicles that are newly added to
the inventory, to function in an integrated manner into the top command control system.
FIRE SUPPORT COMMAND AND CONTROL SYSTEMS

The Fire Support Automation System (AFSAS) enables firing support to be executed in the
battlefield in full compliance with other battlefield functional areas with the automation of
the command, control and communication functions of the firing support.
Efforts to equip troops under the Land Forces Command with Fire Support Automation ASELSAN PROVIDES COMMAND
Systems are ongoing.
CONTROL EQUIPMENT, SOFTWARE AND
ELECTRONIC WARFARE COMMAND CONTROL AND COORDINATION SYSTEM COMMUNICATION SYSTEMS, WHICH ALLOW
In the functional area of Electronic Warfare/Intelligence, development activities continued VEHICLES IN THE INVENTORY OF THE
for the Electronic Warfare Command Control and Coordination System (EWC3S), which LAND FORCES COMMAND, GENDARMERIE
includes state of the art technological infrastructure and integrates all the EW elements GENERAL COMMAND AND THE GENERAL
and command posts in the battlefield. With the EWC3S, the use of all electronic warfare
systems, which are either in the inventory of our Land Forces Command or which will be DIRECTORATE OF SECURITY, OR WHICH HAVE
enter the inventory, will be more effective in a coordinated manner. The need to more JUST ENTERED THE INVENTORY, TO OPERATE
quickly and more accurately evaluate, make decisions and command will be met in IN INTEGRATION WITH THE HIGH COMMAND
electronic warfare and intelligence in the rapidly accelerating and changing face of the CONTROL SYSTEM.
battlefield as a result of evolving technology.
BATTALION TASK FORCE BATTLE MANAGEMENT SYSTEM (BATUR)

The development of the Battle Management System (BATUR), which provides solutions to
the command and control system requirements of all combat elements under the battalion
in the battlefield, continued.
The deliveries of the Command Control and Communication Systems for the anti-tank
weapon carrier vehicles, which will be brought into the Land Forces Command inventory,
was realized.
Efforts to develop the Under-Battalion Command Control System, which is part of the
Network Assisted Capability Project of the Land Forces Command, have been started.
SOLDIER COMMAND CONTROL INFORMATION SYSTEM (CENKER)

CENKER is an integrated information system which is designed to increase the command-
control, situational awareness, communication, reconnaissance and surveillance
capabilities of the dismounted land force at the company, team and squad levels. The
location, situation, emergency messaging, tactical situation, command-control and
intelligence information sharing activities of the land task force are carried out under
automation with the wearable sensors, microprocessors, communication and display units
that are in the system. Site inspections of the CENKER system were carried out in 2019.

NETWORK ASSISTED BATTLEFIELD COMMAND AND CONTROL SYSTEMS
Work continued on the integration of a number of systems and components under a
common command control architecture including systems developed by ASELSAN and
are in the inventory which was offered to the use of the Land Forces Command along with
the maneuver, intelligence, electronic warfare, fire support and air defence functional
area command control information systems, aerial reconnaissance systems, tactical
communication systems, the command post elements and the mobile elements serving in
the tactical field.
MILITARY TASK COMPUTER SYSTEMS

The military task computers, military panel computers, military handheld computers,
monitors and keyboards and respective cards, which can be used by integrating them
into the platforms in military systems, or can be handheld, and which are suitable for the
extreme conditions of the battlefield while offering high performance, were developed and
produced.
The deliveries of the Friendly Force Tracking System (BTS) terminals, which will perform
location tracking and which will be integrated into the TTA-2 vehicles that will enter into the
inventory of the Land Forces Command, were completed.
AIR DEFENCE EARLY WARNING AND COMMAND AND CONTROL SYSTEMS (HERİKKS)
With the aim of bringing in new capabilities to the HERİKKS system and for the system to
be put into use for all air defence troops within the Land Forces Command, the HERİKKS-
VI contract was signed in December 2016. In addition to the existing tactical data link
capabilities of the system, by bringing in the Link-16 and the JREAP capabilities, the
workability of HERİKKS-VI together with Air Forces Command systems will be maximized.
HERİKKS is designed to execute the command control of new generation air defence
systems such as KORKUT, AİC, HİSAR-A and HİSAR-O, which are being developed and
planned to be brought into the inventory in the coming period.
Within the scope of the project, one Air Defence Control and Coordination Center, nine
Air Defence Operation Centers, two Early Warning Centers Interface Units, 34 items of
Section Commander Interface Equipment ad 97 items of Stinger / Portable Missile Team
FILEDS OF ACTIVITY
Commander Interface Equipment are planned to be delivered in 2020.
WEAPONS AND WEAPONS FIRE CONTROL SYSTEMS
ASELSAN develops and manufactures weapons and weapons fire control systems of
different caliber and types, which can be used on different platforms for land, air and sea
communications. These systems are offered for service in the world’s armed forces.
REMOTE CONTROLLED WEAPON SYSTEMS (RCWS)

The ASELSAN Remote Controlled Weapon Systems (RCWS) are in service in Turkey and in
19 allied countries.
The production and deliveries of the remote controlled weapon systems which consist of
the Stabilized Machine Gun System (STAMP), the 25 mm Stabilized Gun System (STOP)
and the 30 mm Stabilized Gun System (MUHAFIZ), which have been developed for marine
platforms, continued within the scope of orders received from Turkey and abroad.
The first mass production of the new generation STAMP-2 and STOP systems with features
such as Advanced User Interface, Integrated Training Simulator and Precision Stabilized
Electro-Optical suit were realized with the deliveries successfully completed, and the
systems entered the inventory of the Naval Forces Command.
Contracts were signed with the Sultanate of Oman and Qatar for the export of the STAMP-2
system.
In order to meet the needs of the Philippines Naval Forces Command, the first export of the
30 mm Remote Command Stabilized Gun System (SMASH) to Philippines was realized.
Work to render the STAMP-2 system lightweight and to develop a version suitable for
Russian made weapons has got underway.

Mass production and deliveries continued for the SARP Remote Controlled Weapons
System, which has been developed for use as a close defence weapon to neutralise land
based and airborne threats against land vehicles or fixed facilities and which will meet the
needs of the Land Forces Command, the Gendarmerie General Command and the General
Directorate of Security. As of the end of 2019, a total of 2,700 SARP Systems had been
delivered.
Work is continuing for the signing of contracts to export the SARP System to Hungary.
Within the scope of the requirements of the General Directorate of Security, the Qatar
Armed Forces and the Kuwait Armed Forces, qualification activities were completed for the
SARP-ZAFER system with under-armor ammunition reloading capability, in which the 7.62
mm and 12.7 mm machine gun can be integrated. The SARP-ZAFER weapons system is
expected to enter the inventory in 2020.
Developmental work for the SARP-KPVT System, designed to provide deterrence and
protection against threats with the use of Russian made 14.5 mm machine guns, was
completed. The product can be integrated into the different vehicle types of different
platform manufacturers. The system is assessed to be given to various security units,
especially the Gendarmerie General Command, in Turkey. The system is aimed to be an
important export item in the foreign markets.
The testing activities for the SARP-L Weapons System, to which the 7.62 mm and 5.56
mm machine guns can be integrated, were conducted within the scope of the needs of
the General Directorate of Security, the Land Forces Command and the Armed Forces of
Bahrain. The SARP-L Weapons System is expected to enter into the inventory in 2020.
Prototype production of the new generation NEFER Unmanned Turret System, which can
be fitted with the 25/30 mm automatic guns and anti-tank missiles of Western or Eastern
origin, on which a 12.7 mm or 7.62 mm co-axial weapon can be mounted, was realized.
The NEFER System, which has an independent electro-optical system, is expected to be in
inventory by 2020.
The developmental work of the NEFER-L Remote Controlled Weapon System, designed for
use against armored land targets in armored combat vehicles, other tactical land platforms
and fixed facilities, was completed. The first demonstration of the system was realized at
the IDEF 2019. The Nefer-L System, which was made to be lightweight and can be fitted
on 4x4 land vehicles, is appropriate for use of the 25/30 mm guns both of NATO origin and
Russian origin.
155 MM FIRTINA SELF-PROPELLED HOWITZER FIRE CONTROL SYSTEM

In 2018, the contract was signed for supply of 140 of the new generation FIRTINA Howitzer
Fire Control Systems.
The effectiveness of the new generation FIRTINA Howitzer, which will be equipped with the
systems developed by ASELSAN, was increased in the battlefield.
With its new turret and additional equipment, the new generation FIRTINA howitzers have
gained a range of additional capabilities which will surpass their counterparts.
In this context, the gun and turret drive systems were rendered fully electrical with
servo-controlled subsystem. The Fire Control System has been designed and developed
according to up-to-date technologies. The Projectile Loading System was made fully
automatic from the magazine to the gun barrel. The SARP remote controlled weapon
system was integrated to meet the FIRTINA howitzer’s need for close protection.
Verification tests for Prototype Approval started in March 2019. Factory, environmental
condition and INS performance tests were carried out and the remaining firing tests for the
approval of the prototype system are planned to be carried out in the first quarter of 2020.
Serial production will begin after the tests.
AIR TRANSPORTABLE LIGHT TOWED HOWITZER FIRE CONTROL SYSTEM

Developed in order to meet the demand for artillery weapons with a high strike accuracy
and tactical flexibility as required by constantly changing and ever more challenging
combat conditions, the BORAN Howitzer with modern equipment is a lightweight

solution which can be transported by helicopter. The Fire Control System of the BORAN
Howitzer was developed by ASELSAN as part of the Air Transportable Light Towed Howitzer
Development project. With the fire control system, the fire readiness, management and
control missions are executed through a computer and digital integration to other fire
support elements is provided. Design activities and prototype production activities were
completed and the system is ready for serial production.
TRUCK MOUNTED 155 MM HOWITZER SYSTEMS

Work continues to provide the 155 mm Towed PANTER Howitzers, which are currently
included in the inventory, with new capabilities by modernizing the equipment and
increasing their effectiveness, reliability and the speed the PANTER Howitzers can execute
missions by integrating them on tactical wheeled vehicles.
Contract work was carried out with Askeri Fabrika ve Tersane İşletme A.Ş., which was
assigned by the General Directorate of Military Factories and the Republic of Turkey,
Ministry of Health of National Defence.
MULTI-BARREL ROCKET LAUNCHER WEAPON MANAGEMENT SYSTEMS

The Multi-Barrel Rocket Launcher Weapon Management Systems provide transition,
deployment, firing preparation and firing control operations of multi-barrel rocket
launchers.
Business development activities were carried out to sell the Multi-Barrel Rocket Launcher
Weapon Management Systems both in Turkey and abroad.
ALKAR 81/120 MM MORTAR SYSTEM

The ALKAR 81/120 mm Mortar Weapon System is a modern weapon system integrated
on the turret, fully equipped with Automatic Barrel Laying System, Ammunition Loading
System (120 mm), Recoil Mechanism and Fire Control Systems, and is designed entirely by
ASELSAN. Domestic/ foreign rifled or smoothbore mortar barrels can be integrated into the
ALKAR 81/120 mm Mortar Weapon System.
Business development activities were carried out for the ALKAR Mortar Weapon Systems in
FILEDS OF ACTIVITY
Turkey and abroad.
81/120 MM MORTAR FIRE DIRECTING AND ALIGNING SYSTEM

Work continued for the more effective, faster and more reliable use of the 81 mm and 120
mm mortars, the system that allows the mortar to be directed precisely within a shorter
space of time while simultaneously allowing the calculation of fire commands and laying of
the barrel with the help of a screen display with the system computer.
60 MM DIRECT FIRE CONTROL SYSTEM

Developmental work continued on the system, designed to enable the more effective and
reliable use of 60 mm mortars.
MAIN BATTLE TANK SYSTEMS
ASELSAN offers unique solutions that meet all existing needs for light, medium and heavy-
class main battle tanks and improve the performance of tanks to exceed the performance
of existing tanks. These solutions are built on the system solutions which constitute the
infrastructure of ALTAY, our national Main Battle Tank, and are developed domestically
by ASELSAN. Adaptations were made in accordance with platform requirements and the
tactical needs of the users.
ALTAY TANK FIRE CONTROL AND ELECTRONIC SYSTEMS

The contract was signed with the main contractor company for the ALTAY Serial Production
Project on 1 May 2019. For the tanks to be produced within the scope of the project,
ASELSAN will provide the Fire Control System, Electrical Gun and Turret Drive System,
Command Control Communication and Information System, Driver Vision System, Laser
Warning System, Remote Controlled Weapon System, Battlefield Target Identification
System, 360o Situational Awareness System, AKKOR Active Protection System and
Embedded Training Simulator, and training tools for providing user/maintenance trainings
for these products.

MODERNIZATION OF MAIN BATTLE TANKS

ASELSAN replaces existing systems in tanks with newly developed state-of-the-art systems
in tank modernization projects. ASELSAN brings tanks an incomparable advantage
in performance with capabilities (such as sight and pointing/stabilization accuracy,
comprehensive improvements in first round hit probability and pointing/ ballistic
computation speeds and automatic target tracking capability) and life cycle costs when
compared to other main battle tanks around the world. While changing regional and global
conditions have highlighted the indispensability of the main battle tanks on the battlefield,
with its experience and state-of-the-art tank modernization solutions, ASELSAN takes on
the role of a leading company in heavy-class tank modernizations (Leopard1, Leopard2,
M60) and light-class tank modernizations (T-72).
Within the scope of the FIRAT-M60T Project, which is being carried out to more effectively
protect the main battle tanks against anti-tank threats and terrorist elements and to bring
additional capabilities to existing systems, the modernization of many M60T tanks was
completed in less than a year. The project was immediately implemented, while operations
were continuing, and our modernized tanks were made available for the use by our army.
The M60T tanks modernized by ASELSAN formed the backbone of the Zeytin Dalı (Olive
Branch), Fırat Kalkanı (Euphrates Shield) and Barış Pınarı (Peace Spring) operations, and
were highly successful at all levels of the operations. After this modernization project, one
of the most modern M60 tanks in the world has been acquired and the capabilities for both
close-to-mid range firing capability, near-to-far range survivability and defensive features,
as well as the capabilities for the maintainability of tanks and personnel were increased to
higher levels.
SMART MUNITIONS AND ACTIVE PROTECTION SYSTEMS
ASELSAN provides solutions for smart munitions of naval, air, land platforms and active
protection systems. With having valuable experience on military electronic design,
ASELSAN continues to design and manufacture medium and large caliber smart munitions
to provide high hit probability by integrating electronic units into munitions.
Active protection systems detect and destroy threats before impact on military land
vehicles. ASELSAN designs and manufactures active protection systems to provide
effective solutions for protection of military land vehicles in battle area against threats.
ATOM 40 MM HIGH VELOCITY AIRBURST GRENADE

Effectiveness of ATOM 40 mm High Velocity
Airburst Grenade, which will be qualified in
first half of 2020, against mini/micro UAVs has
been proved with a demonstration coordinated
by Presidency of Defense Industries on 11th
of September 2019. Mini UAV targets were
successfully destroyed by the ATOM 40 mm
fired by ASELSAN’s remote weapon system
SARP which is integrated with ASELSAN’s
anti-drone system İHTAR. ATOM 40 mm is
programmed to the exact time of detonation
while leaving the barrel. Using a pre-fragmented
shell that is optimized for the target set, high
hit probability is ensured. ATOM 40 mm will
be delivered with 40 mm Hard-kill System that
is expected to be within the scope of İHTAR
contract signed with the Presidency of Defense
Industries.

ATOM 35 MM AIRBURST AMMUNITON
Serial production contract between Presidency of Defense Industries and ASELSAN Inc.
for the production 35 mm Air Burst Ammunition was signed on 27th December 2017.
Regarding this, first batch of contract that is 5250 units of Airburst Ammunition is delivered
in July 2019 and the second batch of 9000 units of Airburst Ammunition was successfully
delivered in December 2019.
On 7th of November 2019, Presidency of Defence Industries officially informed that

first optional part of contract has been activated. Together with Option 1 regarding the
contract, 167.970 units of ammunition will be manufactured. Electromechanical fuze of
Airburst Ammunition is produced at ASELSAN Macunköy Plant within the automated fuze
production line and approximately 45.000 units of fuze have been produced during 2019.
ATOM 35 mm Airburst Ammunition, together with ability of precise time counting and the
capability of being programmed during firing by taking muzzle velocity into consideration;
ATOM 35 mm Air Burst Ammunition provides high hit probability against various types of
air and land targets.
COURSE CORRECTION SOLUTIONS FOR MORTAR AND HOWITZER MUNITIONS

ASELSAN makes efforts to increase the effectiveness of mortar and howitzer munitions
by providing course correction solutions. The recent studied solution is based on
the idea of correcting the muzzle velocity deviations by integrating newly developed
electromechanical fuze into the conventional 105/155 mm artillery ammunition. According
the deviation of the muzzle velocity from nominal values, the opening time of air brakes
located in the fuze is determined. The air brakes are opened at the intended point
programmed after the ammunition leaves the barrel. Course Correction Fuze shall be used
with all types of 105/155 mm artillery munitions.
ACTIVE PROTECTION SYSTEMS

Regarding the contract that was signed between Presidency of Defence Industry and
ASELSAN, AKKOR system is being developed for ALTAY tank. AKKOR is a system that
detects the approaching threat (e.g anti tank missiles) and causes the threat to be triggered
or to be neutralized before it reaches the tank. Besides ASELSAN’s expertise on gun/sensor
FILEDS OF ACTIVITY
systems, acquired experience and assets that is possessed on smart munitions are being
aimed to develop hard kill ammunition which is one of the main components of the system.
Active Protection Systems are sophisticated systems that needs to be developed

considering the properties of defended platform, types of threats and residual effects of
the ammunition itself. ASELSAN will continue to study developing new Active Protection
Systems in coming periods for various other platforms by taking into account the
requirements and properties of sensors, guns and munitions.

FILEDS OF ACTIVITY

ASELSAN PRODUCES AND DEVELOPS
THERMAL SYSTEMS, DAYTIME VISION
SYSTEMS, NIGHT VISION SYSTEMS,
LASER SYSTEMS, ELECTRO-OPTIC
COUNTERMEASURE SYSTEMS AND MULTI-
SENSOR ELECTRO-OPTICAL SYSTEMS.
MICROELECTRONICS, GUIDANCE AND

ELECTRO-OPTICS BUSINESS SECTOR
FILEDS OF ACTIVITY

MICROELECTRONICS, GUIDANCE AND ELECTRO-OPTICS BUSINESS SECTOR
ELECTRO-OPTIC SYSTEMS
Within the scope of the Electro-Optic (E/O) System solutions for land, air and sea
platforms, activities are carried out on thermal vision, daytime vision, image enhancing
night vision, laser, multi-sensor E/O systems and E/O counter-measures as well as basic
technologies used in E/O systems.
NAVAL SYSTEMS
The Contract for the supply of the DENIZGOZU AHTAPOT-S Electro-Optical
Reconnaissance and Surveillance System was signed at October 7th, 2019 with the Republic
of Turkey, Ministry of Defence for the needs of Turkish Naval Force.
SEAEYE KIRLANGIÇ
FAT, HAT and SAT tests of LİS and DENIZGOZU AHTAPOT Systems and LIS System have
been completed on TCG KINALIADA which is the 4th ship of MILGEM Project. PIRI Infrared
Search and Tracking System and AHTAPOT System production has started for LHD (Multi-
Purpose Amphibious Assault Ship).
The final deliveries out of 10 Submarine Periscope Thermal Cameras (DEPETEK) was
completed for the German periscope supplier Hensoldt Opt. GmbH. YUNUS Systems are
put into operation for use of Turkish Coast Guards.
SGRS Project acceptance activities have started. Acceptance of Cavus Island Coast Guard
Station coastal surveillance systems and temporary acceptance of Hopa Coast Guard SEAEYE MARTI

Station coastal surveillance systems have been completed. Regarding the needs of Turkish
Coast Guards, the production of KIRLANGIC and MARTI Systems has started.
Two contracts for the Laser Warning System (LIS), which was designed to alert against laser
threats, have been signed with separate abroad customers. Factory Acceptance Test of
Advanced LIS for LHD Project was successfully completed.
RECONNAISSANCE AND SURVEILLANCE SYSTEMS

With the number of deliveries approaching 3.000 each, ATS-70/71 is used by Turkish Land
Forces, Turkish Gendarmerie and Turkish National Police as the constant sight system of
LASER WARNING SYSTEM SARP RCWS.
Regarding the needs of a foreign client’s missile sight, EYE-LR-S Thermal Camera deliveries
have been completed. The high performance EYE-LR Thermal Camera family, which can
also be used for reconnaissance and surveillance against Mini / Micro UAV threats, have
been delivered within the scope of domestic and international contracts.
The deliveries of FALCONEYE-MW E/O Systems have been completed within the scope
of ATES and KAYI Border Security Projects. Production activities of FALCONEYE-MW have
started for the needs of EU Border Security Project and Turkish Gendarmerie.
A contract was signed with a foreign platform manufacturer company for PERIEYE thermal
ATS-71 cameras.
Within the scope of the contract signed with FNSS for the need of Weapon Carrier Vehicles
(STA) of Turkish Armed Forces, deliveries of SAGER-STA E/O systems produced for STAs
with KORNET-E Weapon Systems have been completed.
Preparation of manufacturing/test lines and system integration laboratories of ALTAY

Turkish Main Battle Tank Serial Production Program continues.
FALCONEYE-MW, YAMGOZ and ATS-70 deliveries continue within the scope of MGUB
FILEDS OF ACTIVITY
Projects. 8th stage of E/O deliveries have been successfully completed and 9th stage
deliveries are on the way.
After the successful completion of qualification tests, DRAGONEYE E/O Systems serial
production has started in 2019. Nearly 200 deliveries were achieved, of which the main
end-users are Turkish Armed Forces and Qatar Armed Forces.
EYE-LR-S
EYE-LR-L TANK DRIVER VISION SYSTEM YAMGOZ

Tank Driver Vision System (TSGS), Tank Laser Warning System (TLUS), YAMGOZ and ATS-
70 deliveries have been completed in M60T Tank Modernization Project.
In DNTSS-II Project, the deliveries of nationally redesigned Thermal Sight Unit (TSU) and
Thermal Electronics Units (TEU), used for the maintenance of Armored Combat Vehicles
(ZMA) are completed.
E/O systems, consists of PERIEYE Thermal Camera, GUNGOR-HD-M Day Sight and ADLR
Laser Range Finder have been delivered in KORKUT Project.
DRAGONEYE
THERMAL CLIP-ON WITH NIGHT VISION CLIP-ON WITH

1,5X-6X DAY LIGHT 1X-4X DAY SIGHT
THERMAL CLIP-ON WITH ENCLOSED REFLEX SIGHT 3-12X SNIPER SCOPE

3-12X SNIPER SCOPE
PORTABLE TACTICAL SYSTEMS

Within the scope of “Komando Modernizasyonu” and “MPT-76” projects aimed at the
needs of Turkish Land Forces, deliveries of 1x-4x, 1.5x-6x Day Sights, Reflex Sights, SRS3-12
Sniper Scopes, Clip-on devices have continued.
Eye-Mobile Thermal Handheld Sight, STINGER Mini Thermal Weapon Sight and Thermal
Weapon Sights were delivered to the several foreign end-users.
Within the scope of the need of Turkish Naval Forces, Day Sights were delivered.
DORUK E/O Sensor Systems have been delivered to Turkish Land Forces.
Sniper Scopes with accessories and Day Sights were delivered to Turkish Air Forces.
SHARPEYE Electro-Optic Sensor Systems, Day Sights and Thermal Sight Clip-on were
delivered to Turkish Gendarmerie.
DORUK EO SENSOR SYSTEM

TARGETING SYSTEMS
Integrated Electro Optical System (IEOS) Technology Development Project under the
Turkish Fighter Development (TF-X) Program has been going on.
Serial production of the ASELPOD Targeting System together with indigenous subsystems
is ongoing and deliveries was carried out within the framework of domestic and foreign
contracts.
CATS E/O Reconnaissance, Surveillance and Targeting System has integrated to different
platforms. Design of DASS (Distributed Aperture Surveillance System) for rotary wing
platforms has been started with same infrastructure of CATS.
ATMACA
Deliveries of ASELFLIR-300T E/O Reconnaissance, Surveillance and Targeting System
were realized within the scope of the ATAK Project. ASELFLIR-300T deliveries for the
modernization of the Cobra Helicopter is ongoing within the scope of an international
contract.
Electro Optical Wide Area Surveillance and ATMACA Reconnaissance and Surveillance
Systems Factory Acceptance Tests were performed.
ATMACA, KUZGUN and FINCH E/O Reconnaissance and Surveillance Systems were
deployed on unmanned platforms.
FILEDS OF ACTIVITY
KUZGUN
ASELPOD

LASER DEFENCE SYSTEM MULTI LASER SENSOR SYSTEM
LASER SYSTEMS ASELSAN CROWNED ITS LASER SYSTEMS

ASELSAN crowned its laser systems designs, which has been continuing for more than 20 DESIGNS, WHICH HAS BEEN CONTINUING
years, in 2019 with the Laser Defence System-Mobile (LSS-M) product. FOR MORE THAN 20 YEARS, IN 2019 WITH
THE LASER DEFENCE SYSTEM-MOBILE
LSS-M, which is considered to be a superior power factor to adversary systems in the
(LSS-M) PRODUCT.
tactical field regarding 21st century war technology, has been developed with ASELSAN’s
own resources.
ASELSAN LSS-M has been developed for the detection and destruction of suspicious
objects and hand-made explosives, tarpaulin and cover-like temporary barriers used in
residential areas and mini-UAVs. Demonstrations of the system to end users continues.
ELECTRO-OPTICS PRODUCTS PROGRAMS

Deliveries of A-Series Night Vision Devices to various end-users in Turkey and abroad have
been completed. A portable E/O device was exported to an African country for the first
time and with this delivery, this country was added to the list of export countries.
With the cooperation of ASELSAN Middle East (AME), IGLA Mini-TSD and IGLA YIGIT E/O
system deliveries were made in order to meet the thermal vision system needs of a country
in the Middle East.
Night vision kits, night vision attachments, sniper scope and thermal camera sales were
made to our subsidiary, Kazakhstan ASELSAN Engineering (KAE).
INFRARED PHOTON DETECTORS

MCT (Mercury Cadmium Telluride) cooled infrared detector development activities have
been progressing within the scope of TF-X Integrated Electro-Optical System Technology
Development and Infrared Detector Assembly Development Projects.
Design verification and qualification for MWIR MCT detectors are planned to be completed
in 2020-2021 according to the Infrared Detector Assembly Development Project schedule.
Super-lattice cooled infrared detector and SWIR uncooled detector development activities
have advanced. Super-lattice and SWIR detectors are planned to be integrated into
ASELSAN thermal cameras.

UV SOLAR BLIND IMAGE INTENSIFIER TUBE
UV Solar Blind Image Intensifier Tube production and fiber optical bonding with sensor
chip have continued for missile warning applications.
INERTIAL MEASUREMENT UNITS (IMU)

ASELSAN has continued integration activities of the domestically designed KILAVUZ series
Tactical and Navigational Grade IMU’s for miscellaneous platforms for the mission of
gaining the critical technologies.
Activities to integrate domestically designed and produced Tactical Grade Inertial

UV TUBE 1 Measurement Unit (KILAVUZ-20) into Precision Guidance Unit 2 (HGK) are in progress.
After the completion of verification tests, serial production of KILAVUZ 20 is planned to be
started.
KILAVUZ-10 Inertial Measurement Units have been delivered to different domestic firms in
Turkey in order to integrate and use in their original systems.
UV TUBE 2
KILAVUZ-10 (TG-IMU) KILAVUZ-20 (TG-IMU) KILAVUZ-100 (NG-IMU)
FILEDS OF ACTIVITY
UNCOOLED INFRARED THERMAL DETECTORS (MICROBOLOMETER)

Microbolometer type detectors are used in ASELSAN Thermal Weapon Sights, Surveillance
and Reconnaissance Systems and Missile Seeker Heads.
Prototype detectors have been manufactured in a progressive manner during the year of
2019 at ASELSAN’s MEMS facility.
Vacuum packaging processes for the detectors have also been developed by ASELSAN.
The design validation activities are ongoing and it is aimed to complete line and product
qualification and start production in 2020.

AVIONIC SYSTEMS
ASELSAN continued manufacturing and delivery activities regarding Gendarmerie
Helicopter Modernization, Turkish Special Forces Helicopter Modernization, ATAK, ANKA,
Turkish Utility Helicopter, Turkish Light Utility Helicopter (GÖKBEY) and HÜRKUŞ-B New
Generation Basic Trainer Aircraft Programs.
HELICOPTER PROGRAMS
ASELSAN is responsible for the development of hardware and software of Avionic Central
Control Computer (ACCC), development and integration of all other avionic and weapon
systems managed by ACCC for the ATAK Program. Besides, serial production, delivery of
avionic systems and technical support activities for the program are performed.
Deliveries for one Prototype Helicopter, nine EDH Helicopters, twenty-nine ATAK Phase-1
Helicopters and twenty-one ATAK Phase-2 Helicopters were completed in the Program.
“Initial Flight Tests” with the “Integrated Central Control Computer” which is designed for
ATAK Phase-2 Helicopter has been accomplished in the scope of ATAK Phase-2 Helicopter
Qualification.
Kit deliveries have been continued for the EGEMEN Helicopters developed for the Republic
of Turkey, Ministry of Interior.
The design and integration of Helmet Integrated Cueing System (AVCI), which was THE FLIGHT MANAGEMENT, NAVIGATION, ELECTRO-
specifically developed for T-129 ATAK Helicopter is completed. The serial production and OPTIC, COMMUNICATION, RADAR, ELECTRONIC
kit deliveries of AVCI has been continued. WARFARE, WEAPON AND MISSION SYSTEMS DESIGNED
AND MANUFACTURED BY ASELSAN HAVE BEEN FIELDED
In scope of AH-1W Helicopter Modernization Program for Turkish Land Forces, integration AND OPERATED BY THE TURKISH ARMED FORCES FOR
phase has been continued. MANY YEARS.

ASELSAN STATE OF THE ART INDIGINEOUS AVIONICS For various air platforms of Turkish Land Forces, design and integration activities
SYSTEMS DEVELOPED AND PRODUCED IN THE SCOPE concerning ASELSAN Software Defined Radios and Identification of Friend or Foe (IFF Mod-
OF ASELSAN AND SIKORSKY COLLABORATION ARE NOW 5) Systems have been continuing.
INVOLVED IN THE STANDARD CONFIGURATION OF
BLACK HAWK HELICOPTERS. With the Turkish Utility Helicopter Program signed with Sikorsky Aircraft Company,
ASELSAN is responsible for the development, production and integration of critical avionic
systems including mission, navigation, communication and electronic warfare systems.
After integration of ASELSAN indigenous IMAS (Integrated Modular Avionics System)
System, S-70i helicopter will be renamed as T-70. Hardware and software development
activities are completed, testing and verification process have been continued in the
Program. Platform initial flight tests are scheduled to be performed in the first half of year
2020.
Within the scope of the Avionic Modernization of Gendarmerie Helicopter Program,

ASELSAN is responsible for the avionic modernization of Sikorsky S-70A, AB-205 and
Mi-17 helicopters currently existing in inventory of Turkish Gendarmerie. Serial integration
activities for Mi-17 and AB-205 helicopters are completed and serial integration activities
for S-70A helicopters are still running.
The Modernization of Turkish Special Forces S-70A helicopters has been included in
the Gendarmerie Helicopters Avionics Modernization Project contract, and with the
completion of prototype integration the serial integration phase was initiated.
ASELSAN signed an export contract with TUSAS for the modernization of AH-1E Cobra
Helicopters in 2015. In June 2017, the scope of the contract has been expanded by
addition of AH-1F Cobra Helicopters. Serial production deliveries have been continued in
compliance with the contract.
As a part of GÖKBEY Light Utility Helicopter Program, for military and civilian purpose
light utility helicopter prototypes, ASELSAN is responsible for the development of certified
(Civilian standards) cockpit avionics, automatic flight control computers, health and usage
FILEDS OF ACTIVITY
monitoring computers, mission and flight management software as a national project.
Besides development activities of the Program, currently existing ASELSAN avionic systems
are integrated to the helicopter as well. Certification activities have been continued

DELIVERIES OF HTAWS (HELICOPTER TERRAIN

AWARENESS AND WARNING SYSTEM) INTEGRATED TO
THE TABLETS HAVE BEEN COMPLETED IN 2017 FOR THE
CONTRACT SIGNED WITH STM. SERIAL INTEGRATION
ACTIVITIES HAVE BEEN CONTINUED IN 2019 FOR THE
HELICOPTERS OF 7 DIFFERENT END USERS.
ICCC INTEGRATED CENTRAL CONTROL COMPUTER
with regards to civil helicopter configuration and the deliveries of the developed avionic
equipment have been completed for the civilian type helicopter. GÖKBEY Helicopter
certification flights have been started in June 2019.
KDU-45 KEYBOARD DISPLAY UNIT
Deliveries of HTAWS (Helicopter Terrain Awareness and Warning System) integrated to the
tablets have been completed in 2017 for the contract signed with STM. Serial integration
activities have been continued in 2019 for the helicopters of 7 different end users.
In the scope of the contract signed with PDI, newly developed HTAWS displayed in the
cockpit as integrated with other avionics of the platform, will be integrated to helicopters of
Turkish Land Forces (S-70A Blackhawk, UH-1H/AB-205 and AS-532 Cougar). PDR has been
completed successfully and development activities are still ongoing.
The integration activities of TEMREN Guidance Missiles to S-70B Sea Hawk Helicopters of VMFD-68 VIDEO MULTIFUNCTIONAL DISPLAY
Turkish Naval Forces have been continued.
AIRCRAFT PROGRAMS
As part of Turkish Airborne Reconnaissance Program (TARP), the integrated logistic
support under warranty period is continuing for the first lot of delivered and operational
EO/ IR reconnaissance systems on F-16s. Furthermore, the scope of the TARP contract has
been expanded to meet the additional needs of TurAF. The deliveries are planned to be
completed within 2020.
IMD-820 INTEGRATED MISSION DISPLAY
Under ANKA UAV Program, Flight Control Computer (FCC), Mission Computer (MC),
Inertial Navigation System (ANS), Electro-Optical Reconnaissance, Surveillance and
Targeting System (CATS) are indigenously developed and integrated by ASELSAN.
In the scope of the New Generation Basic Trainer Aircraft Project (HÜRKUŞ-B), avionic suite
including glass cockpit displays and mission computer are developed by ASELSAN. In
addition, on-board avionic equipment are integrated to the Mission Computer. ASELSAN
developed Operational Flight Program (OFP) and Digital Map Software and these are
updated in accordance with the feedbacks gathered after flight tests.
All the activities are accomplished in the LN-100G/GT Testing System Service Procurement
Program signed with Turkish Air Force Logistics Command. ANS-600 AIRBORNE INERTIAL
NAVIGATION SYSTEM

IN THE SCOPE OF THE NEW GENERATION BASIC
TRAINER AIRCRAFT PROJECT (HÜRKUŞ-B), AVIONIC
SUITE INCLUDING GLASS COCKPIT DISPLAYS AND
MISSION COMPUTER ARE DEVELOPED BY ASELSAN.
IN ADDITION, ON-BOARD AVIONIC EQUIPMENT ARE
INTEGRATED TO THE MISSION COMPUTER. ASELSAN
DEVELOPED OPERATIONAL FLIGHT PROGRAM (OFP)
AND DIGITAL MAP SOFTWARE AND THESE ARE
UPDATED IN ACCORDANCE WITH THE FEEDBACKS
GATHERED AFTER FLIGHT TESTS.
On December 2019, ASELSAN has been awarded for Simulated Avionics Software
Subcontract by HAVELSAN under the HÜRKUŞ-B Simulator (HÜRSİM) Program.
The contract is signed between ASELSAN and subcontractor company ESEN for the
Radio Navigation Equipment Development Program and the Preliminary Design Phase is
completed. In the scope of National IFF Program, indigenous IFF Systems will be developed
by ASELSAN. The IFF systems will be integrated to 17 different airborne and naval
FILEDS OF ACTIVITY
platforms of TurAF and Turkish Naval Forces. Equipment development and integration
design activities for have been continuing. System Integration Lab Tests are completed
successfully for the integration of IFF Transponder system to F-16 Block 30TM platform and
ground tests are progressing as scheduled.
NAVIGATION SYSTEMS
The navigation requirement of Turkish Armed Forces has been satisfied by manufacturing
and integration of indigenous ASELSAN navigation systems such as ANS-510, ANS-511
(Navigation Grade), ANS- 310, ANS-311 and ANS-313 (Tactical Grade) to various land,
naval and airborne platforms through different programs since year 2010.
As part of the STR EİRS, Kalkan, HTR, ADESTİM and YİTP programs, deliveries of 136 land
navigation systems has been completed in 2019.
Indigenous ASELSAN Land Navigation System development and integration activities for
the New Generation FIRTINA Howitzer Program has been continued in the scope of Turkish
Land Forces requirements. With the completion of prototype acceptance phase, a total of
140 navigation systems are going to be manufactured and delivered.
All the activities are completed for the First Party Factory Acceptances of ASELSAN Naval
Navigation Systems for Turkish Navy Gabya and Barbaros platforms.
Delivery of ANS-510 Airborne Navigation Systems to ATAK, AH-1E Cobra helicopter, and
ANKA MALE UAV platforms, and ANS-311 Navigation System for ANKA MALE UAV platform
accomplished in compliance with the respective delivery schedules.

GUIDANCE AND UNMANNED SYSTEMS
MINIATURE BOMB AND SMART MULTIPLE CARRIAGE RACK

GPS/INS guided Miniature Bomb which can be used against reinforced concrete surface
targets and Smart Multiple Carriage Rack which can carry 4 Miniature Bombs were
developed for the need of Turkish Air Force Command. The first Miniature Bomb was
dropped from an F-16 fighter aircraft on 12 December 2019 and hit the target with high
accuracy.
PRECISION GUIDANCE KITS (HGK-82, HGK-84)

The serial production of Precision Guidance Kit-84 (HGK-84) were continued in the scope
of the agreement between Minister of Defense (MSB) and ASELSAN.
The production of Laser Seeker developed for HGK-84 was successfully started. HGK-84
with Laser Seeker (LHGK-84) has better target hit accuracy and has the capability of hitting
moving targets also.
ASELSAN starts the serial production of HGK-82 under a contract awarded by Presidency of
Defence Industries (SSB). HGK-82 is a GPS/INS guidance kit that converts MK-82 general
purpose dumb bombs into all-weather precision guided munitions.
HISAR-A/O IMAGING INFRARED SEEKER DEVELOPMENT PROJECTS

HISAR Low and Mid Altitude Air Defence Missile Systems firing tests were successfully
executed. HISAR Imaging Infrared seeker detected and tracked high speed target drones
with high performance in all through the tests. In October, a high speed target drone in
long range was shot down by a HISAR-A missile with live warhead.
LASER GUIDANCE KIT - 82/84 SERIAL PRODUCTION PROJECT

Serial production of the combat proven Laser Guidance Kits (LGK-82, LGK-84), that convert
the MK-82 and MK-84 general purpose bombs into laser-guided weapons, continues. The
deliveries under the contract signed with Presidency of Defence Industries in 2018 have
been completed. The localization of LGK’s electrical motors has been completed. LGK is
successfully used in operations including the Operation Peace Spring.
KARAOK INFRARED SEEKER DEVELOPMENT PROJECT

In the KARAOK Short-Range Antitank Missile Seeker Development Project, first lot of
functional seekers were delivered and flight worthy seeker development activities have
been in progress.
UMTAS (LONG RANGE ANTI-TANK MISSILE)

The serial production of UMTAS Imaging Infrared Seekers continued. Firing tests of UMTAS
missiles from ATAK helicopter were successfully performed.
OMTAS (MEDIUM RANGE ANTI-TANK MISSILE)

OMTAS Imaging Infrared Seeker serial production contract has been signed in January
2019 and the first lot of seekers delivered in 2019. In the firing tests performed in Weapons
Carrier Vehicle (STA) project, the targets were successfully hit with OMTAS medium-range
anti-tank missiles fired from vehicles in motion.

UNMANNED SEA VEHICLE PROJECTS
Within the scope of Unmanned Surface Target Boat Purchase Service Contract, 4
ALBATROS-T and 1 ALBATROS-K services were provided in the Eastern Mediterranean Sea
and North Aegean Sea.
Upon the request of the Turkish Naval Forces Command, successfully served with
ALBATROS-T in the Eastern Mediterranean Invitation Exercise which was conducted in
November 2019 with the participation of NATO member countries.
Within the scope of the agreement signed with the Republic of Turkey, Ministry of Defence
for the procurement of 4 New Type Semi-Autonomous Survey Boats in order to meet the
needs of the Naval Forces two Surveying Boats were delivered.
UNMANNED GROUND VEHICLES PROJECTS

ERTUGRUL Explosive Ordnance Disposal Robots, which were developed to meet the needs
of the General Directorate of Security with the contract signed with the Presidency of
FILEDS OF ACTIVITY
Defence Industry, mass production and deliveries have been completed.
It has been continued to develop various types of unmanned vehicle kits for existing
vehicles for NATO’s standardization activities for interoperability of unmanned vehicles.
Development and testing activities have been continued for the Kaplan Warrior prototype
vehicle, which was produced by integrating a steerable weapon system on two axis on the
KAPLAN vehicle platform.
Studies have been carried out on the Kaplan platform to provide the abilities of traveling
autonomously to the coordinate determined on the console and tracking people or
vehicles by moving around obstacles.
by walking around the obstacles that it confronts, to autonomously go to the coordinate

determined on the console and to gain human or vehicle tracking capabilities.
Within the scope of the Middle Class 2nd Level Unmanned Ground Vehicle Project,
development studies have been initiated for the unmanned ground vehicle capable of
reconnaissance, surveillance, target detection and can be different weapons systems
integrated on it.

MINI UNMANNED AERIAL SYSTEM (MUAS)

In the Safety Project of BOTAŞ Oil and Natural Gas Pipelines, signed with SSB;
MUAS development activities, which are used for target detection, surveillance and
reconnaissance, can be controlled by RF link and can fulfill pre-programmed flight and
mission functions, continued.
In project, two sets of MUAS Unmanned Aerial Vehicle Systems are continued by ASELSAN.
SERÇE UNMANNED AERIAL SYSTEM

Within the scope of Turkish Land Forces, Turkish Air Forces, General Command of
Gendarmerie and Directorate General of Security needs, SERÇE-1 and SERÇE-2 UAV
Systems deliveries have been completed.
SERÇE UAV systems integrated with MGÜB (Modular Base Security Solutions) acceptances
have also been completed in MGÜB Project 4, 5, 6, 7 and 8. Phases and systems to be
delivered for phase 9 are being prepared.
In the Border Security System Project, Acceptance Tests for the integration of the SERÇE
UAV system to the ASELSAN SECANS Systems to monitor the immediate surroundings of
the base areas are continued.
The new SERÇE-3 system has been developed with the help of feedback from the field
feedback and additional user requests and performed successfully flight tests
In order to increase its operational efficiency, the technical efforts on mechanisms for
releasing ammunition from SERÇE systems and integration on armored land vehicles have
been successfully carried out at Turkey and abroad.
KAMIKAZE MULTI-ROTOR UAV

Within the scope of the MOU signed with ROKETSAN, impact tests were carried out using a
live warhead with the Kamikaze Multi Rotor UAV for the first time. For the version of Larger
warhead is ongoing.

KARAGOZ AEROSTAT SURVEILLANCE SYSTEM
In Border Security Project signed with SSB, KARAGÖZ Aerostat Surveillance System is
developed in order to provide wide area surveillance and intelligence capability from high
altitude.
In the Aerostat Wide Area Surveillance System Project, ATMACA and Wide Area
Surveillance camera systems were delivered.
ARI-1T ROTARY WING MINI UAV SYSTEM

In the ARI-1T Project, improvings on Electronic Engine Control Unit integration, vibration
reduction at the engine and gimbal blocks and sensitive autonomous landing and take-off
capability to UAV are continuing.
FILEDS OF ACTIVITY
NANO UAV R&D PROJECT
Development studies have been performed and test flights have been started in the
scope of self-founded development project NANO UAV, which has low visual and
audible signatures and is easily portable and can be integrated with ground vehicles
for reconnaissance, surveillance and intelligence purposes in both open and closed
environment.
SWARM UAV TECHNOLOGY GAIN OBLIGATION PROJECT

The SWARM UAV Project (The ERTUĞRUL Explosive Ordnance Disposal Robot “Technology
Gain Obligation” Project) which was initiated with the protocol signed with SSB, has been
successfully completed.
In order to develop the algorithms of the SWARM UAV systems locally, the necessary
technological infrastructure is aimed to be created and studies have been carried out with
METU, ITU and Atılım University.
SWARM UAV R&D PROJECT

The SWARM UAV Project which was Self-Funded, swarm algorithm development studies
have continued.
Within the scope of the project, swarm algorithm development, autopilot development
and Multi Rotor UAV integration will be realized.
TEPEGOZ TETHERED PERSISTENT SURVEILLANCE SYSTEM R&D PROJECT

Within the scope of self-funded TEPEGOZ Project, UAV development studies, which
incorporates a jamming resistant datalink and a special data and power cable in order to
provide prolonged perimeter protection for critical infrastructures and forward operating
bases have been continued, and test flights for newly added capabilities have been started.

FILEDS OF ACTIVITY

IN TODAY’S COMPLEX WARFARE
ENVIRONMENT, ELECTRONIC WARFARE
AND RADAR SYSTEMS OFFER EXCELLENT
SOLUTIONS WITH STATE-OF-THE-ART
RECEIVERS, PROCESSORS, ANTENNA
UNITS AND USER FEATURES. WITHIN THIS
SCOPE, ASELSAN DEVELOPS NUMEROUS
RADAR, ELECTRONIC SUPPORT (ES) AND
ELECTRONIC ATTACK (EA) SOLUTIONS
FOR THE ELECTRONIC ORDER OF BATTLE
WHICH WORKS AS FORCE MULTIPLIER.
RADAR AND ELECTRONIC WARFARE

SYSTEMS BUSINESS SECTOR
FILEDS OF ACTIVITY

RADAR AND ELECTRONIC WARFARE SYSTEMS BUSINESS SECTOR
ELECTRONIC WARFARE SYSTEMS

ASELSAN has been working on equipping platforms, which are currently being used
by the Turkish Armed Forces and related agencies, with indigeniously designed cutting
edge Land-Based/ Airborne/Naval Electronic Warfare systems to complete their mission
survivability and maximize situational awareness. Besides ASELSAN’s domestic programs,
ASELSAN has also been focusing on export activities to meet the international users’ needs
for electronic warfare systems. ASELSAN has also undertaken several concept development
activities to introduce latest technologies and EW concepts, reduce the size of its existing
systems to make them more compact and compatible, and improve their technical
performance.
ASELSAN has been working with several strategic partners, Small and Medium-sized
Enterprises (SMEs) and sub-industry companies to create a sustainable domestic
ecosystem. In line with the strategic plans of ASELSAN, full cooperation with domestic sub-
contractors is ensured for integrated circuits, complex boards, power amplifiers, antenna
adaptation units, power generators, air-conditioning units, power distribution units, power
supplies, easy-to-install antenna mechanisms and masts.
EW PRODUCT LINE SYSTEMS

Advanced technology Electronic Warfare Systems, which are greatly needed for national
defence, asymmetric warfare and civilian usage, are developed genuinely and domestically
in order to increase the survivability of platforms, estimate location of the targets, provide
situational awareness, disrupt and monitor target communication and radar systems.

ASELSAN HAS BEEN WORKING ON In this regard, projects have been carried out with Turkish Presidency, Turkish Presidency of
EQUIPPING PLATFORMS, WHICH ARE Defence Industries (SSB), Turkish MoD, Turkish Armed Forces, Turkish General Directorate
of Security (EGM), Turkish Military Police, Turkish Coast Guard, Turkish Special Forces,
CURRENTLY BEING USED BY THE TURKISH Governor’s Offices, BTK, STM and other several abroad customers.
ARMED FORCES AND RELATED AGENCIES,
WITH INDIGENIOUSLY DESIGNED CUTTING Within this context, below Contracts have been signed in year 2019:
• AKKOR Active Protection System Procurement Agreement for ALTAY MBTs
EDGE LAND-BASED/ AIRBORNE/NAVAL • Electronic Circuited Improvised Explosive Device (IED) Detection and Neutralization
ELECTRONIC WARFARE SYSTEMS TO System Development Project
COMPLETE THEIR MISSION SURVIVABILITY • Anti-Drone/Mini UAV RF Jammer System Procurement Project
AND MAXIMIZE SITUATIONAL AWARENESS. • Anti-Drone/Mini UAV Portable RF Jammer System Procurement Project
• Manpack/Vehicle Type Jammer System Procurement Project
• EGM Manpack/Vehicle Type/Suitcase Jammer System Procurement Project
• Counter Measure System Project against IEDs
• Radar Cross Section Analysis and Signature Management Solution (Radar Absorbing
Material Coating) under the scope of Preveze Class Submarine MLU Project
• Electronic Warfare Systems Procurement Agreements to Tunisia, Azerbaijan and
Kazakhstan
Below deliveries have been performed in line with Contractual requirements in year 2019:
• Communications Jamming and Deception System (MUKAS)
• Portable V/UHF Electronic Attack Systems (MİLKAR-3A3)
• Radar Electronic Warfare Electronic Support Measures System
• İHASAVAR™ Anti-Drone/Minai UAV RF Jammer Systems
• MEERKAT Pocket Receivers
• KiRPi™ Manpack Jammer Systems
• KANGAL™ Vehicle Type Jammer Systems
• GERGEDAN™ Vehicle Type Jammer Systems
• Portable Electronic Attack System
• Doğan Class Assault Boat ESM System Modernization Project
• ARES-2NS ESM System under the scope of New Type Submarine Project
• ARES-2SC ESM System for TCG PREVEZE submarine
• RWR/GPS Antenna and Signal Distribution Unit under the scope of Pakistan AGOSTA-
90B MLU Project
• 4XPOL GSM Base Station Antenna
FILEDS OF ACTIVITY
• MSU Processing Board and Power Supply Unit under the scope of A400M Processing
Board – Power Supply Unit Project
• SATCOM Radome, V/UHF Passive Blade Antennas, HF Towel Bar Antennas for Mi-17, Mi-
24, Mi-8 and Mi-35 platforms, Dual Polarized Band-III+ Reflector Antennas for Portable
Radio-link System, Multi-band Digital Radio, V/UHF Passive Blade Antennas and AS-532,
S-70A, CN-235, AH-1W, HF Towel Bar Antennas for genuine helicopter platforms

Development, design, test, production and integration activities were carried out for the
below listed projects in 2019. The critical design phase of many of the projects listed below
has been completed.
• AKKOR and PULAT Active Protection Systems Development Projects

• Radar Jamming and Deception System (RAKAS)
• High Frequency (HF) Electronic Attack System Project, High Frequency (HF) Direction
Finding (DF) and Monitoring System Project
• Portable V/UHF Electronic Support System Project
• Radar Electronic Warfare Support and Electronic Attack System Project
• Kılıç-II Class Assault Boat ESM System Modernization Project
• Productions of ARES-2NS ESM System under the scope of New Type Submarine Project
• New Generation, National Spectrum Monitoring System Project
• 4XPOL GSM Antenna Project and 8XPOL GSM Antenna Project
Broad range of Electronic Warfare products are exhibited in IDEF 2019, TDOA Receiver
and MEERKAT Pocket Receiver grabbed particular attention. Furthermore, PULAT Active
Protection System was demonstrated on M60T main battle tank.

DETECTION AND IDENTIFICATION OF
DRONE/MINI UAV ABILITIES OF MEERKAT
POCKET RECEIVER WERE SUCCESSFULLY
DEMONSTRATED TO THE GENDARMERIE
GENERAL COMMANDS, THE GENERAL
STAFF, LAND FORCES COMMAND, SPECIAL
FORCES, THE NATIONAL INTELLIGENCE
ORGANIZATION, THE SIGNAL INTELLIGENCE
DIRECTORATE, THE TURKISH PRESIDENCY
OF DEFENCE INDUSTRIES, THE GENERAL
DIRECTORATE OF SECURITY AND
DEPARTMENT OF PRESIDENTIAL SECURITY.
The presentation of the High Power Electromagnetics (HPEM) System’s effectiveness

against Improvised Exlosive Device and Drones / mini UAV was carried out with the
participation of The Turkish Presidency of Defence Industries, the General Staff, the Land
FILEDS OF ACTIVITY
Forces, the Special Forces, the Training Doctrine, the Gendarmerie General Commands and
the General Directorate of Security.
Detection and identification of drone/mini UAV abilities of MEERKAT Pocket Receiver

were successfully demonstrated to the Gendarmerie General Commands, The General
Staff, Land Forces Command, Special Forces, the National Intelligence Organization, the
Signal Intelligence Directorate, The Turkish Presidency of Defence Industries, the General
Directorate of Security and Department of Presidential Security.
PULAT Active Protection System presentation was delivered in 5th Future Armored Vehicles
Survivability (FAVS) event held in London.
We participated in the Communication Electronic Information Systems School Drill carried

out in many regions by the General Staff, where the MUKAS System, which we delivered in
2019, was deployed. The MUKAS system successfully completed the tasks given.
The studies for the Superhydrophobic Surface Development Project have been continued
with Süleyman Demirel University. Application of the end products of the project to EW
system components and their testing are underway.
Flexible and High Frequency Cables -which are durable against pressure and load- for
Submarine Electronic Support Systems were designed and produced domestically.
GaN Jammer Project; design & development activities for GaN based HEMT (High Electron
Mobility Transistor) and MMIC (Monolithic Microwave Integrated Circuit) components
were carried out. The components are planned to be used in ultra wide band and high
power military and non-military applications.
Electronic Warfare applications on UAV Swarms are studied.
Research and design activities of Fluorescent nanoparticle production (Nanopar) Project

were carried out.

Systems solution was submitted with METU MEMS to TUBİTAK for collaboration in matters AKKOR AND PULAT ACTIVE PROTECTION
of high range detection of explosives and armed personnel with the utilization of Terahertz SYSTEM SOLUTIONS WERE SUBMITTED FOR
technology in the scope of TERASENS project.
LEOPARD-2A4, M60A3 MAIN BATTLE TANKS
AKKOR and PULAT Active Protection System solutions were submitted for Leopard-2A4, AND NEW GENERATION LIGHT ARMOURED
M60A3 main battle tanks and New Generation Light Armoured Vehicles, Residential Area VEHICLES, RESIDENTIAL AREA VEHICLE,
Vehicle, Armoured Combat Vehicle and the Tank Saving Vehicle platforms. ARMOURED COMBAT VEHICLE AND THE TANK
New counter-UAS products were continued to be designed and delivered by ASELSAN. SAVING VEHICLE PLATFORMS.
EW PROGRAM LINE SYSTEMS
As part of the Airborne Electronic Warfare Projects, ASELSAN conducted business

operations and submitted various proposals to domestic and international users for
the Electronic Warfare Self Protection (EWSP) System, the Communication Electronic
Support (ES) System and the Radar Electronic Support (ES) System solutions. ASELSAN
has continued its operations on schedule for the projects under the current contracts. For
the R&D projects conducted with its own resources, ASELSAN performed several concept
development activities to miniaturize the components and increase systems’ performance.
Under the HEWS RWR/RFJ/LWR/SCPU Procurement and Integration Contract, ASELSAN

continued the mass-produced HEWS deliveries, and delivered a large number of systems.
In 2019, Group-A kits for S-70A-28D/DSAR Sikorsky helicopters were delivered for
platform integration activities. Concerning the Electronic Warfare Support Center (EWSC),

TECHNICAL SUPPORT WAS PROVIDED FOR user trainings performed and the delivery of the last phase of the laboratory has been
FILEDS OF ACTIVITY
THE EW SELF-PROTECTION SYSTEMS IN ATAK completed. Contract Changes were signed to include the modification of the CN-235
platform integration activities along with the procurement of a DIRCM system and its
HELICOPTERS REGARDING THE HELICOPTER integration to the system.
INTEGRATION OF THE PHASE-2 SYSTEMS
CONSISTING OF THE RADAR WARNING Technical support was provided for the EW Self-Protection Systems in ATAK Helicopters
regarding the helicopter integration of the Phase-2 systems consisting of the Radar
RECEIVER, RF JAMMER AND LASER WARNING Warning Receiver, RF Jammer and Laser Warning Receiver sub-systems. Helicopter
RECEIVER SUB-SYSTEMS. HELICOPTER qualification activities have been initiated.
QUALIFICATION ACTIVITIES HAVE BEEN
INITIATED. Within the scope of the General Purpose Helicopter Project, EW Self-Protection System
deliveries were made, and technical documentation and support were provided.
Within the scope of the contract signed with Chile to meet its needs for electronic warfare
systems, the on-site integration and testing processes were completed and delivery of all
the platforms has been successfully completed within the scope of the program.
CMDS (Countermeasure Dispensing System) Support Center activities under the HEWS-
CMDS/CFD (Chaff Flare Decoy) Project continued with ROKETSAN. The integration
activities of HITL Simulator have been completed and HITL Integration Tests have been
planned for January 2020.
As part of the development of the Next-Generation Countermeasure Dispensing System

(NG-CDS), the Magazine and Dispenser Base Unit (MDBU) has been developed. The
prototype MDBU is being tested within the scope of Qualification Tests.
Within the scope of the Self Protection Electronic Warfare Systems (SPEWS-II) Project,
system compliance and performance tests were carried out for the Second Package F-16
Aircraft. With the positive results observed in these tests, work was carried out in order
to activate the SPEWS-II System on a larger number of aircraft. Aircraft integration was
completed, and pilot and line level training was repeated at the Air Forces bases and the
systems started to be actively used.

Within the scope of the project carried out by The Turkish Presidency of Defence Industries
and ASELSAN, aircraft modification and certification activities were carried out on the
business jet, which will be delivered by integrating special task systems that are developed
and/or supplied by ASELSAN. The aircraft modification was brought to a mature stage by
the platform modification subcontractor, ground tests got underway and the Certification
Plan was approved.
The Electronic Support Measures (ESM) system verification flight tests were carried out on
the three platforms which are in use under the Airborne Early Warning and Control Aircraft
(AEWCA) Electronic Support Measures (ESM) System contract. Integrated logistics support
activities have been carried out for Electronic Support Measures systems. Integrated
logistics support activities were carried out for the ESM systems.
Within the framework of the Airborne Early Warning and Control Aircraft (AEWCA)
Electronic Support Measures (ESM) Development contract, national ESM system design
and production activities have been carried out.
Within the scope of the Integrated RF System of the National Combat Aircraft (TF-X)
Technology Development Project, the Integrated Baselined Review was completed in
2019. Technology Requirement Documents, Concept Analysis and Critical Technology
Element Design documents for Critical Technology Elements were prepared and delivered
to the customer. In addition, support was provided for platform design activities. Work
was carried out on the Alternative System Review phase. Reports were prepared for the
provisional systems to be utilized at the aircraft level.
Within the scope of the Remote Electronic Support / Electronic Attack from the Airborne
Platform the Stand-Off Jammer Aircraft (AIRBORNE SOJ) needed by the Air Force
Command Project, Project Kick off Meeting and Program Review Meetings were held
with The Turkish Presidency of Defence Industries and the Air Force Command. The
issues posing risk for the project were identified and risk mitigating activities were carried
out. System requirements were defined for the Task System, system architecture was
determined, production activities were initiated and interface control documents were
created. Technical and administrative work were carried out with TUSAŞ, our Business
Partner.

FILEDS OF ACTIVITY
WITHIN THE SCOPE OF THE LHD NAVAL Within the scope of the LHD Naval Electronic Warfare Suite Supply Project, Factory
ELECTRONIC WARFARE SUITE SUPPLY Acceptance Tests for the Central Management System, the Chaff / Infrared Decoy
Pulse System, the Radar Electronic Support System and the Electronic Attack System
PROJECT, FACTORY ACCEPTANCE TESTS FOR were successfully completed. The delivery of the Naval Electronic Warfare Suite will be
THE CENTRAL MANAGEMENT SYSTEM, THE completed with Sea Acceptance Tests to be performed on the TCG Anadolu Platform in
CHAFF / INFRARED DECOY PULSE SYSTEM, 2020.
THE RADAR ELECTRONIC SUPPORT SYSTEM
The Naval Electronic Warfare Suite, which was designed and produced through domestic
AND THE ELECTRONIC ATTACK SYSTEM WERE resources and with the accumulated knowledge and long lasting experience of the Naval
SUCCESSFULLY COMPLETED. Forces Command and ASELSAN’s extensive EW experience, was integrated for the first
time onto the TCG FATİH and TCG YILDIRIM Platforms and was successfully delivered
following a series of challenging field performance tests. The Sea Acceptance Tests of the
EW systems of the TCG YAVUZ, the third ship and TCG TURGUTREİS, the fourth ship were
completed successfully and the systems were delivered to the Turkish Navy.
Within the scope of the MidLife Modernization of the BARBAROS Class Frigates EW Suite
contract, which was signed in April 2018 and entered force in August 2018, the design,
development and production processes were carried out.
The design, development, verification and production activities of the “ARES-2NCL

Extended” Electronic Support systems, which will be integrated into 2 platforms belonging
to the Pakistan Navy, were carried out. Delivery invoices of the “ARES-2NCL Extended”
ES system that is to be integrated into two platforms were issued in December 2019. The

Factory Acceptance Tests and the shipment of these systems to Pakistan is planned to be
completed within the first quarter of 2020. Activities are continuing within the scope of
the GaN Based RF Power Transistor on the Silicon Carbide (SiC) Substrate Project, which
an essential part of the EW and RADAR systems. Work also started on the development of
the circulator and thermal carrier material needed in the systems. High power GaN Based
power amplifiers for EW projects were developed.
In the scope of development and qualification of Ka Band Low Noise Amplifier (LNA)
Project, development of Ka Band LNA module which is planned to be placed TURKSAT 5B
Satellite is completed.
RADAR SYSTEMS
ASELSAN Radar and Electronic Warfare (EW) Business Sector continued its highly focused
business development, concept definition, design, development, production, test and
after sales support activities for various radar programs in cooperation with domestic
solution partners and universities at ASELSAN Gölbaşı Facility. With the work carried out
in the radar activity arena; it is aimed to fulfill radar requirements of Turkish Armed Forces
equipped with advanced technology and indigenously designed systems, and to sell our
radar systems abroad while expanding the core business activities to include civil radar
applications.
In line with the international demands received during the year, bids were submitted for
radars. In addition, business development and demo / test activities were carried out with
customers.
Mass production of Mobile Search Radar (MSR) and Fire Control Radar (FCR) has been
followed with the contract awarded to ASELSAN by Presidency of Defence Industries (SSB).
Moreover, related tests were carried out regarding HİSAR and KALKAN Air Defence Radar
Systems.
Within the scope of KALKAN - II serial production, the manufacturing activities of KALKAN-II
Air Defence Early Warning Radar were continued, and deliveries have been completed.
Production and verification activities for the Portable Early Warning Radar Systems with
Active Phased Array, Electronic Scanning (AESA) antenna structure carried out within the
scope of the “Early Warning Radar Systems Phase-1 Project” of our Air Force Command
continued.
WITHIN THE SCOPE OF KALKAN - II SERIAL

PRODUCTION, THE MANUFACTURING
ACTIVITIES OF KALKAN-II AIR DEFENCE EARLY
WARNING RADAR WERE CONTINUED, AND
DELIVERIES HAVE BEEN COMPLETED.

ÇAFRAD PROGRAM FOR TURKISH NAVY’S
TF2000 ANTI AIR WARFARE FRIGATE,
NAMELY TECHNOLOGY DEMONSTRATION
PROTOTYPE, HAS BEEN SUCCESSFULLY
COMPLETED.
FILEDS OF ACTIVITY
The development of Long Range Surveillance Radar, Multi-Function Fire Control Radar
and Radar Seeker of the missile programs were continued within the scope of Long Range
Air and Missile Defence System Project Contract (SIPER System). System and Subsystem
design activities of the project continued. In this context, prototype production activities
have been started.
ÇAFRAD program for Turkish Navy’s TF2000 Anti Air Warfare Frigate, namely Technology
Demonstration Prototype, has been successfully completed.
In accordance with the SERHAT Counter Mortar Radar contract, systems have been
delivered and installed to Turkish Land Forces. For the remaining batch of the contract will
be delivered in 2020.
The remaining deliveries are expected to be completed in 2020. In addition, the systems
produced under the Contract, which was signed for the needs of the Naval Forces
Command within the year, were delivered to their troops and put into operation.
In line with the needs of the Land Forces Command, within the scope of the “ Weapon
Locating Radar System Project”, which identifies the mortar, artillery and rocket launchers
carried out by friendly and enemy elements, and precisely calculates the point of impact
and point of origin, production and verification work of units / sub-systems continued and
system integration activities were carried out.

In line with the need of the Air Forces Command, the integration and testing activities of
the Air Traffic Control Radar System Project were continued. Following the completion of
the activities which will continue in 2020, the first delivery under the project will be carried
out in March 2021.
In order to detect and identify buried metal/plastic mines and handmade Improvised
Explosives Devices (IEDs), imaging radar with ground penetration capability development
and prototype production contract has been signed with SSB.
Within the scope of the project, the Ground Penetrating Radar with new generation,
specially developed imaging algorithms will be developed, which will be used as the main
sensor in the detection of Improvised Explosives Devices.
Within the lasting activities of AKKOR Active Protection System Development Project,
Radar Sensor studies have been proceeded.
Integration and acceptance tests for MILGEM-4 radar systems were successfully worked off.
Regarding Multi-Function Amphibious Assault Ship (Landing Helicopter Dock - LHD)

Project; the production of radar systems was completed and integration to the platform
and combat management system continued in accordance with the contract schedule.
Activities related to the Design and manufacturing of CW (Continuous Wave) illumination

capable fire control radars for Barbaros Class Frigate Mid-Life Modernization Project
continued with detailed design and improvement undertakings.
In line with the contract signed with Turkish Aerospace signed in 2018 the Integrated RF
System of the TF-X National Fighter Aircraft Development Project, ASELSAN continued
preliminary design activities of multi-functional nose aperture radar functions and
technology readiness level studies of critical technology elements.
For the F-16 platforms in the inventory, multi-function AESA radar development studies
have been continued.
The design and development activities as part of the national AKINCI Unmanned Aerial
Vehicle Nose Radar, which will be used for air to air and air to ground missions have been
continued as planned.

WITHIN THE SCOPE OF PRODUCTION OF Within the scope of production of SARPER Synthetic Aperture Radars, the first national
SARPER SYNTHETIC APERTURE RADARS, THE imaging and ground moving target indicating (GMTI) radar system developed for airborne
platforms, have been completed and delivered to TUSAŞ. One of these radars has been
FIRST NATIONAL IMAGING AND GROUND integrated into ANKA platform and flight tests have been completed.
MOVING TARGET INDICATING (GMTI)
RADAR SYSTEM DEVELOPED FOR AIRBORNE Design, prototype production and validation activities including field tests and hardware
in the loop tests for various radar seeker units have been conducted for various missile
PLATFORMS, HAVE BEEN COMPLETED AND projects.
DELIVERED TO TUSAŞ.
Live firing tests of ATMACA surface to surface missile, which is the first national missile
with an RF seeker, are conducted. In the last test, ATMACA missile has been launched
from the KINALIADA Corvette and Radar Seeker provided the missile fully successful
terminal guidance and a perfect hitting performance. The serial production contract for
ATMACA surface to surface missile project was signed, and production activities within this
framework were continued. The estimated delivery plan of radar seekers is scheduled as
2020.
The first air to air radar seeker of TURKEY have ever been qualified and ground firing of
GOKTUG Beyond Visual Range Missile (GOKDOGAN) was conducted.
Development and validation activities for HİSAR-O Medium Altitude Missile Radar Seeker
have been continued and first live firing test will be performed in 2020.
ASELSAN continued to work on various applications of ACAR Surveillance Radar Family

for ever growing domestic and international requirements. In this perspective, ACAR-
UAV4015 Radar equipped with 40 degrees of elevation coverage antenna has been
FILEDS OF ACTIVITY

developed and produced. In addition to counter-UAV purposes, ACAR-Dual1015 Radar has

been developed and manufactured. During the year, the production of nearly 100 radars of
the ACAR Surveillance Radar Family was completed and delivered.
The SERDAR-7M Radar System is produced within the scope of the contract signed with the
Republic of Turkey, Ministry of Transport and the Coastguard Command for the purposes of
coastal surveillance and ship traffic management. The Factory Acceptance activities for the
REİS Radars, which is the version of the SERDAR-7M Radar System, with the ability to work
with redundant operating capability brought into the Send and Receive structure, were
completed in 2019.
SERDAR-7M Radars delivered Within the scope of the Coastal Surveillance Radar Systems
Project were put into operation. In addition, the acceptance of SERDAR-4M and SERDAR-
7M Radars produced within the scope of contracts signed with the Coast Guard Command
has been completed.
The design of FOPRAD, which is an innovative in-forest surveillance radar that provides
real-time situational awareness by performing tasks such as identifying and tracking
moving targets within the vegetation and forest, was completed and put into service in the
field.

THROUGHOUT 2019, EFFORTS CONTINUED
TO SELL ALL OF OUR SURVEILLANCE RADAR
SYSTEMS AND THEIR SUBCOMPONENTS
ABROAD. BY PARTICIPATING IN NATO
WORKING GROUPS, STUDIES AND ACTIVITIES
WERE CARRIED OUT TO IDENTIFY FUTURE
RADAR NEEDS AND TECHNOLOGIES.
Throughout 2019, efforts continued to sell all of our surveillance radar systems and their
subcomponents abroad. By participating in NATO working groups, studies and activities
were carried out to identify future radar needs and technologies.
With the experience and knowledge gained through military radar system projects,
ASELSAN continued to develop radar systems for civil applications as well. For the
mentioned scope, X-Band Weather Radar hardware test and validation activities completed
FILEDS OF ACTIVITY
in 2019, efforts continued for traffic radar integration into existing systems.
CMMI FOR DEVELOPMENT V1.3 LEVEL 3
While REHIS Business Sector continues to improve its Management System according to
international standards, certified 3rd time for CMMI-DEV v1.3 Level 3 besides AS9100D,
ISO9001: 2015, ISO20000-1: 2011, AQAP2310 Edition B, AQAP 2110 Edition B,
ISO17025:2012 for Environmental Test Lab and ISO17025: 2012 for EMC Test Lab
certificates.
The scope of certificate covers System, Hardware, Software Development and Platform
Integration activities and valid until June 26th, 2022.

FILEDS OF ACTIVITY

WITHIN THE SCOPE OF TRANSPORTATION, SECURITY, ENERGY, AUTOMATION
AND HEALTHCARE PROJECTS, UGES BUSINESS SECTOR CONTINUES TO HAVE
ACTIVITIES FOR TECHNOLOGICAL SOLUTIONS, HARDWARE, SOFTWARE, DEVICE
AND SYSTEM DEVELOPMENT, PRODUCTION, DOMESTIC AND INTERNATIONAL
SALES AND AFTER-SALES SUPPORT FOR RAIL VEHICLE SYSTEMS, ELECTRIC AND
HYBRID VEHICLE SYSTEMS, RAIL VEHICLE SIGNALING AND CONTROL SYSTEMS,
BORDER SECURITY SYSTEMS, COASTAL SECURITY SYSTEMS, PUBLIC SECURITY
SYSTEMS, SMART TRANSPORTATION SYSTEMS, INDUSTRIAL AUTOMATION
SYSTEMS, MEDICAL TECHNOLOGIES SYSTEMS, POWER MANAGEMENT AND
RENEWABLE ENERGY SYSTEMS.
TRANSPORTATION, SECURITY, ENERGY,

AUTOMATION AND HEALTHCARE SYSTEMS
FILEDS OF ACTIVITY

TRANSPORTATION, SECURITY, ENERGY, AUTOMATION AND HEALTHCARE SYSTEMS
TRANSPORTATION SYSTEM
RAIL VEHICLE SYSTEMS
Traction (Cer) Control Systems

The traction systems, which are described as the heart of rail vehicles, have been designed
and developed by ASELSAN. These systems have been procured from abroad until
ASELSAN has developed the national solutions. The traction system with its hardware,
software and algorithms was developed and locally manufactured by ASELSAN.
The traction control system with its modular architecture, new generation IGBT (Insulated
Gate Bipolar Transistor) technology and DSP (Digital Signal Processing) based control
electronics has been developed as per the international rail vehicle standards such as
EN50155, EN50125, EN50163, EN50121, EN61287, EN61377.
The systems have been integrated into Ankara Metro and Silkworm vehicles and the
system has been successfully employed during the operational tests. With TÜLOMSAŞ and
TÜVASAŞ, these projects have been brought to important stages for the use in locomotive
and regional train platforms. The traction system developed by ASELSAN in the Hybrid
Shunting Locomotive Project has come to realization in collaboration with TÜLOMSAŞ.
In the traction chain development project, the National Train prototype units have been
successfully verified, customer acceptance tests have been performed and the mass
production has already begun.

TRAIN CONTROL AND MANAGEMENT Auxiliary Power Systems
SYSTEM, WHICH IS KNOWN TO BE THE Different auxiliary power units that are used in rail system vehicles are being developed as
there are different power requirements for trams, subways, regional trains, locomotives,
BRAIN OF RAIL VEHICLES, HAS BEEN
etc.
DEVELOPED FOR HIGH-SPEED TRAINS,
REGIONAL TRAINS AND SUBWAYS. These systems are used in Hybrid Shunting Locomotive, National Train and ANKARAY light
INNOVATIVE ARCHITECTURES FOR VEHICLES, rail systems. The site acceptance testing for the products developed for National Train and
ALGORITHMS, HARDWARE AND SOFTWARE ANKARAY vehicles was successfully completed in 2019.
WERE ALL DEVELOPED TO HAVE A HIGH
LEVEL OF SAFETY AND RELIABILITY. Train Control and Management System
Train Control and Management System, which is known to be the brain of rail vehicles,
has been developed for high-speed trains, regional trains and subways. Innovative
architectures for vehicles, algorithms, hardware and software were all developed to have a
high level of safety and reliability.
The modular computer system developed in this project consists of Central Control Unit
(CCU), Automatic Train Operation System (ATO), Automatic Train Protection System (ATP),
Human Machine Interface (HMI) and signalization. It can be employed in vital computer
systems required by all rail vehicle systems such as high speed train, regional train, metro,
and tram.
In accordance with the contract signed with TÜVASAŞ, development and prototype
production of the Train Control and Monitoring System developed for National Train was
finished. The customer acceptance testing has been successfully completed.
Energy Management System

ASELSAN has been active in areas of energy management system development to increase
the efficiency and to reduce the cost for rail transportation vehicles. Energy management
systems allow the reduction of the electricity consumption in rail transportation vehicles
and their operation without catenary.
Energy Management System has been developed to store the braking energy in the
FILEDS OF ACTIVITY
Hybrid Shunting Locomotive, which was developed with TCDD TRANSPORTATION and
TÜLOMSAŞ, to reach the level of emission-free operation in a closed environment, to
reduce the noise level and to provide fuel savings.

Main Line and Metro Signalization System THE TRACTION SYSTEMS, WHICH ARE
High technology signaling protection hardware and software systems are being developed DESCRIBED AS THE HEART OF RAIL VEHICLES,
in accordance with the international standards for safe and secure main line and city rail HAVE BEEN DESIGNED AND DEVELOPED
transportation systems. ASELSAN’s work on railway signalization systems are divided into
BY ASELSAN. THESE SYSTEMS HAVE
two main areas: Metro Line and Main Line. For both areas; ASELSAN continues its R & D
activities in an ecosystem that includes its clients, TUBITAK, universities and competent BEEN PROCURED FROM ABROAD UNTIL
subcontractors. ASELSAN HAS DEVELOPED THE NATIONAL
SOLUTIONS. THE TRACTION SYSTEM
In M1 metro line signaling project developed jointly with Metro Istanbul and TUBITAK, WITH ITS HARDWARE, SOFTWARE AND
ASELSAN works on the technical and administrative solutions. In this project, ASELSAN ALGORITHMS WAS DEVELOPED AND LOCALLY
is the project technical manager. And ASELSAN holds the same responsibility for the MANUFACTURED BY ASELSAN.
development of on-board equipment of the National CBTC System project.
ELECTRICAL VEHICLE & ENERGY SYSTEMS
ELECTRICAL VEHICLE SYSTEMS

Production, testing and certification activities as well as R&D for ASELSAN Electrical Vehicle
System components designed to be utilized in civilian and military applications have been
carried out through 2019. In addition, in line with the expectations of the automotive
industry our serial production capabilities have been developed and effective cost
management processes have been implemented.
Besides the development activities realized together with TEMSA and ANADOLU ISUZU
automotive groups, sales of ASELSAN Electrical Vehicle Systems to BMC Company also
started. The first vehicle of Avenue 12 m Electrical Busses developed together with TEMSA
is expected to be released within the first quarter of 2020.
ASELSAN has also actively participated and contributed to the public and semi-public
working groups to provide solutions for the initial investment costs for electrical public
transportation systems which is considered to be the main market entry barrier.
Marketing and business development activities to end-users consisting of mainly

metropolitan municipalities have been accomplished. ASELSAN has also contributed to the
joint working groups for financing and transportation system development projects as well.

IN 2019, WORKS TO PROVIDE SYSTEM
SOLUTIONS FOR R&D, PRODUCTION,
INTEGRATION AND SOLAR FV POWER
CONVERSION WERE CARRIED OUT.
Energy Systems
ASELSAN UGES Business Sector has been carrying out its activities with the aim to become
the leading local technology provider within the fields of electromechanical power
conversion and power electronics by using the engineering experience accrued during
its previous activities. In 2019, works to provide system solutions for R&D, production and
FILEDS OF ACTIVITY
integration of wind and solar FV power conversion were carried out.
Renewable Energy Systems

We have engaged in the development of innovative and indigenous solutions to produce
efficient energy generation by utilizing the rich renewable energy resources, mainly wind
and solar. Some of the critical system components that were mainly developed locally to
have competitive advantages in the market for Renewable Energy System solutions are:
• WIND POWER: Research, development and production infrastructure establishment

for full-scale wind power conversion systems and main electric network connection
algorithms have been completed in order to meet the demands of the wind turbine
producers. Engineering activities for system improvement of the medium scale
(<500kW) power conversion systems to enhance to a full-scale power conversion
performance were carried out in 2019. ASELSAN has financed the development of >MW
full-scale power conversion systems.
• PHOTOVOLTAIC SOLAR ENERGY: Improvements have been achieved for cell energy
transformation in the joint development effort done together with the METU-GÜNAM.
• Production and delivery of GURU Compact Systems to the Turkish Armed Forces have
been realized. The primary aim of the project was to provide reliable, cost effective and
clean energy from both wind and solar within a portable and structural design.
• Also R&D activities to develop a hybrid renewable micro-grid network system have
started. This project, which is a joint effort with the METU-KKK, is funded by ASELSAN.

SECURITY SYSTEMS THE SCOPE OF BORDER SECURITY PROJECT

(KAYI) HAS BEEN EXPANDED BY NEW
Activities in the field of Security Systems are carried out within the areas of “Field Security SYSTEMS SUCH AS MANNED SURVEILLANCE
Systems’’, “Urban Security Systems’’ and ‘’Infrastructure Security Systems’’ Programs. TOWER, WIDE AREA SURVEILLANCE SYSTEM,
MOBILE MAST MOUNTED SURVEILLANCE
FIELD SECURITY SYSTEMS
Activities in the field of Homeland Security Systems are carried out under the following sub SYSTEM, ULAK SYSTEM FOR WIRELESS VIDEO
areas: TRANSFER AND MULTIPURPOSE INTELLIGENT
• Border Security, DISTRIBUTED ACOUSTIC SENSOR FOR IĞDIR
• Security Systems Integrated On Mobile Platform, BORDER.
• Coastal Security,
• Border Patrol and Base Security,
• Counter Improvised Explosive Devices Measures,
• Oil and Gas Pipeline Security.
BORDER SECURITY AND SECURITY SYSTEMS INTEGRATED ON MOBILE PLATFORMS

The contract for the Border Security Project (KAYI) was signed in 2018 with the Presidency
of Defence Industries for the establishment of the Integrated Border Security System in
the Syrian borderline. Within the scope of the project, advanced technological electronic
systems such as electro-optical sensor system, land surveillance radar, military radio
systems and gunshot detection systems will be designed and manufactured by ASELSAN
while other sample systems produced by domestic companies. These systems will be
controlled by MIRSAD Security Management System developed by ASELSAN.
The scope of project has been expanded by new systems such as Manned Surveillance
Tower, Wide Area Surveillance System, Mobile Mast Mounted Surveillance System, ULAK
System for wireless video transfer and Multipurpose Intelligent Distributed Acoustic Sensor
for Iğdır Border.
In 2019, Facility Acceptance Tests of subsystems were conducted; and the infrastructure for
data/electric, installation and start up activities were completed in border patrols.
The bid arranged for ATEŞ Project (Supply of Mobile Surveillance Units for Increasing
Border Surveillance Capacity) is funded with the support of Instrument for Pre-Accession
Assistance (IPA). The bid was open for all EU countries to give proposal and ASELSAN
got the first place. Within the ATEŞ Project, production activities were finished. LOT-2
phase was completed after the delivery of 20 vehicles. As for LOT-1; 27 vehicles have
been delivered so far. After the delivery of the remaining 10 vehicles in 2020, LOT-1 will be
completed as well.

THE WARRANTY PERIOD ACTIVITIES The AB-SGS Project (Supply for Increasing Border Surveillance Capacity of Turkey) was also
CONTINUED FOR AKSAZ AND FOCA signed with the Republic of Turkey, Ministry of Treasury and Finance. The system design
and field explorations have been completed and the setting up of the system has begun in
ABOVEWATER / UNDERWATER
prior locations.
SURVEILLANCE AND DETECTION SYSTEM
(YUNUS) PROJECT. The high-tech electronic systems such as electro-optical sensor system, land surveillance
radar, military radio systems and sniper detection systems that have been designed and
manufactured by ASELSAN are being employed in the ATEŞ and the AB-SGS Projects.
SEDA-Acoustic Gunshot Detection System employs the acoustic detection technology to

locate snipers. The system demonstrated a very high performance in the shooting tests.
The SEDA system, which was developed as three different models to be used for stable,
on-board and single-soldier wearing applications has begun to operate primarily in internal
security applications and base areas. The SEDA, which is a commercial product already,
has started to be produced in mass. The development work continues to provide additional
capabilities in order to meet the needs of domestic and foreign security units.
The ASELSAN MÜGAS Mobile Mast Mounted Surveillance System was developed to meet
the limited period surveillance and security needs of troops regardless of their location and
without the need for infrastructure. It is a remote mobile security and surveillance system
that includes advanced electronic systems that provide detection, identification and
tracking of potential threats, and security management software that ensures that these
systems work together in harmony. The build-in self-navigation sensors allow the system to
be operated without any calibration. It has been set up in various places to meet the urgent
safety needs of Turkish Land Forces Command and Turkmenistan Armed Forces.
COASTAL SECURITY SYSTEMS

The warranty period activities continued for Aksaz and Foca Abovewater / Underwater
Surveillance and Detection System (YUNUS) Project. The YUNUS Project ensures an
uninterrupted monitoring of underwater and above-water activities at the port entrances
using advanced technology based on Electro-Optics, RADAR and Underwater sensors.
Thus, the system provided a full protection for Aksaz and Foca Naval Bases.
FILEDS OF ACTIVITY
Within the scope of Development of Prototype Mobile Radar (MORAD) Vehicle Project,
which is conducted in line with the Protocol signed with Turkish Coast Guard Command,
the development activities have been continued. In this project, A van in the Coast Guard
Command inventory has been equipped with the ASELSAN Coast Guard Radar System,
the Electro-Optical System, Communication Systems integrated with ASELSAN SECANS
Security Management Software.

In the scope of the Upgrading and Extending of Turkish Straits Vessel Traffic Management
Systems (TBGTH) Project, the production of çıkartılmış. Wordde yazan şekli: “4 Coastal
Surveillance Radar Systems, 9 Radio Direction Finder (RYB) Systems and 13 Electro Optical
(EO) Systems completed and installation activities have continued. The replacement
service for one existing radar was also completed. All factory acceptance tests have been
done with HAVELSAN and General Directorate of Coastal Safety, and the technical support
were provided for the integration of HAVELSAN Vessel Traffic Management Software.
BORDER PATROL AND BASE SECURITY THE CONTRACT OF “BATMAN 14. AIR
The contract of “Batman Air Force Commandership Physical Security System” was FORCE COMMANDERSHIP PHYSICAL
signed with the Presidency of Defence Industries on 24 July 2019. Within the scope of the
SECURITY SYSTEM” WAS SIGNED WITH THE
project, a physical security system with IP Cameras and Lase Motion Detectors, Security
Management Center and some infrastructure work such as Remote Controlled Weapon PRESIDENCY OF DEFENSE INDUSTRIES ON 24
System Towers, Thermal Camera Towers etc. will be conducted in Batman Air Force JULY 2019.
Commandership.
In Diyarbakır Air Force Commandership, Remote Controlled Weapon System Towers will be
built and Weapon Systems will be installed.
With relation to the Modular Base Security Solutions (MGUB) Project for which the contract
was signed on 5th of February, 2013 and has been continued with changes in contract from
one phase to another, the works of MGUB 6-7 and 8th phases were successfully completed
in 2019. A new contract was signed on 7 August 2019 for the MGUB-9th phase that includes
12 full equipped and 10 including only electronic system integration.
The components to meet the “electronic and physical security”, “Ballistic Protection”
and “Surviving” needs along with the requirements to be defined by the Land
Forces Commandership, Gendarmerie General Commandership and Coast Guard
Commandership were provided. System maintenance and logistics support activities have
continued at the bases where the system was installed. By the end of 2019, a total of 48
MGUB have been installed and installation work for the remaining 24 MGUB is in progress.
Within the scope of the “Remote Control Weapon System Supply” project signed with
the Republic of Turkey, Ministry of National Defence on April 4, 2019, it was requested to
install SARP Weapon System, SARP Tower, the system operating container, video recording
system, generator and uninterrupted power supply as a turn-key project in nine bases. The
provisional Acceptances of the eight systems were done in November 2019.

AT THE REQUEST OF THE REPUBLIC OF FIGHT AGAINST MINE/IMPROVISED EXPLOSIVE DEVICES (EYP)
TURKEY, MINISTRY OF ENERGY AND NATURAL In the year of 2016, the first design studies of Robotic Arm System have started for Fighting
and Detecting Mine/Improvised Explosives with Explosive Detection – Inspection System
RESOURCES, WITH THE CONTRACT SIGNED
Development Project. Eight meter long Robotic Arm System called ÇAK-II is planned to be
BETWEEN THE PRESIDENCY OF DEFENSE mounted in front of an armored vehicle which aims Mine/Improvised Explosives detection
INDUSTRY AND ASELSAN-HAVELSAN and intervention from a safe distance and inside a safe vehicle.
BUSINESS PARTNERSHIP, IT IS AIMED
FILEDS OF ACTIVITY
TO IMPLEMENT INDIGENOUS SECURITY The system developed in this scope had the opportunity to turn into a product along with
SYSTEMS TO SECURE OIL AND GAS (LNG) the Robotic Arm System Contract signed with BMC on 31 December 2018. The system will
PIPELINES AND ITS FACILITIES DEPLOYED IN be delivered to Presidency of Defence Industries in the middle of 2020 and will allow our
armed forces to fight in safety through Mine/Handmade Explosives threats.
TURKEY.
PETROLEUM AND GAS PIPELINE SECURITY
At the request of the Republic of Turkey, Ministry of Energy and Natural Resources, with
the contract signed between the Presidency of Defence Industry and ASELSAN-HAVELSAN
Business Partnership, it is aimed to implement indigenous security systems to secure oil
and Gas (LNG) Pipelines and its facilities deployed in Turkey.
The whole project is planned to be implemented in phases. In the first phase, the business
partnership is going to install indigenous security systems onto the Iraq-Turkey Raw Oil
Pipeline and its twenty-nine-Line Valve Facilities and nine Cathodic Protection Facilities
besides thirteen Operational Campuses.
During 2019, designing, manufacturing and verification processes of the project-specific

subsystems were realized. The COTS products were procured. For the integration of
the products with security software was completed. The documents with contractual
obligations were submitted to the Presidency of Defence Industry. In addition to these
activities, implementation projects of thirteen facilities were planned and submitted to the
MoD for approval.
At the end of 2019, the infrastructures of five primary facilities in Tekirdağ, Hanak,
Türkgözü, Doğubeyazıt, and Silopi were finished, and commissioning of CCTV systems was
completed.
For the implementation of Multipurpose Intelligent Distributed Acoustic Sensor (MIDAS),

the site teams were put together and thanks to these teams possible theft activities were
prevented.

URBAN SECURITY SYSTEMS THE INSTALLATIONS WITHIN THE SCOPE

Under the Urban Security and Security Management System programs, the following OF THE URBAN SECURITY MANAGEMENT
activities are in process: SYSTEM (KGYS) AND THE PLATE RECOGNITION
• Urban Security Management System (KGYS) and Plate Recognition System (PTS), SYSTEM (PTS) PROJECTS WHICH WERE SIGNED
• Safe Schools
BETWEEN THE PRESIDENCY OF DEFENSE
The installations within the scope of the Urban Security Management System (KGYS) and INDUSTRIES AND ASELSAN TO SUPPLY THE
the Plate Recognition System (PTS) projects which were signed between the Presidency NEEDS OF SECURITY GENERAL DIRECTORATE
of Defence Industries and ASELSAN to supply the needs of Security General Directorate FOR CAMERA RECORDING AND MONITORING
for Camera Recording and Monitoring System, Plate Recognition System and Security SYSTEM, PLATE RECOGNITION SYSTEM AND
Systems Sensitive to Heat and Motion across the country have been going on. As of today, SECURITY SYSTEMS SENSITIVE TO HEAT AND
the installation activities have been completed in 104 regions of the project that has a MOTION ACROSS THE COUNTRY HAVE BEEN
total of 106 regions. The acceptance procedures of 103 regions have been completed. In
GOING ON.
eighty of eighty one provinces operating within the scope of the 1st additional package,
installation activities were completed and the acceptance of seventy one regions was
completed. The second additional package was signed within the scope of the project for
the expansions requested. In ten of twenty seven provinces operating within the scope of
the second additional package, the installation activities were completed. The 3rd additional
package was signed for the establishment of an Urban Security Management System in
the Turkish Republic of Northern Cyprus (TRNC). The installation activities are currently
underway in Lefkoşa and Girne regions. Within the scope of the project, it is aimed to equip
the TRNC Police Forces with the capabilities of KGYS.
As part of the Urban Security Management System, the Safe School Project contract was
signed. Within the scope of the project, the systems were installed in 762 schools with
security risks across the country. The project management authority to be realized within
the scope of the needs of the Republic of Turkey, Ministry National Education and General
Directorate of Security is the Presidency of Defense Industries. Within the scope of the
contract, the camera systems were established and the activities of transferring the camera
images to the Urban Security Management System Centre in the district where the school
is located were completed.
INFRASTRUCTURE SECURITY SYSTEMS

All facilities with internal and external threats are considered within the scope of critical
facility:
• Public Institutions
• Military Facilities and Security Units
• Penal Institutions

ASELSAN DRAWS UPON ITS KNOWLEDGE,
EXPERIENCE AND TECHNOLOGICAL
INFRASTRUCTURE GAINED FROM
THE DEFENSE PROJECTS TO MEET THE
ELECTRONIC AND PHYSICAL SECURITY
NEEDS OF CRITICAL FACILITIES.
• Energy Facilities
• Transportation Facilities
• Industrial Facilities
• Customs and Border Gates
• Organized Industrial Zones
• Logistics Centers
ASELSAN draws upon its knowledge, experience and technological infrastructure gained
from the defence projects to meet the electronic and physical security needs of critical
facilities. The projects where the field exploration and requirement analysis, system design,
electronic and mechanical production, system integration, installation, commissioning
and after-sales support services that are handled as a whole have been implemented.
Integrated system solutions were provided under the main headings of video viewing,
FILEDS OF ACTIVITY
recording and analysis, security management software, violation detection, access control,
physical security and professional communication.
In line with market analysis and strategic planning studies, road maps were determined in
order to add X-Ray scanning systems, Thz Imaging Systems, Biometric Authentication and
Access Control Systems to ASELSAN’s product portfolio. There are ongoing negotiations
for possible collaboration with various companies and institutions operating in these areas.
SMART SYSTEMS
Operations were carried out in the area of toll collection systems, traffic management
systems and industrial automation systems.
TOLL COLLECTION SYSTEMS

ASELSAN, as the leading Turkish company in toll collection systems, has carried out
intensive work in this field in 2019 as well. On the Istanbul-Izmir Highway, Yavuz Sultan
Selim Bridge and Northern Ring road, along the newly opened road sections, new toll
collection stations have been added to the existing tolling systems.
Furthermore, the installation of the Toll Collection Systems on Menemen-Aliağa-Çandarlı

Highway are completed and opened to traffic, and a contract was signed for Ankara-Niğde
highway toll collection system and the installation works have started as of the end of 2019.
The toll collection system on the Ankara-Niğde highway has been planned to be completed
in 2020 and the highway will be opening for service.
In 2019, ASELSAN’s tolling systems hit a record high by collecting tolls from about 350
million vehicles both on the 2,200 km long state-operated highways and on the highways
operated by the private sector.

In addition to securing tolls for the constructed highways, ASELSAN toll collection systems WITH REGARD TO THE CONTRACT
also play an important role in the revenue reconciliation and auditing of the private SIGNED BETWEEN ASELSAN AND AFAD
concessions by the state institutions. Special solutions developed for the security, reliability,
ON 19TH FEBRUARY 2019, ASELSAN HAS
traceability and auditability of the data recorded in these systems were integrated to all
ASELSAN toll collection systems in 2019.
BEEN DEVELOPING REMOTE CONTROLLED
MASS NOTIFICATION SIREN SYSTEM IN
The “average speed enforcement corridor system” installed by ASELSAN on the 2,200 km ORDER TO RAPIDLY WARN AND INFORM
long state operated highway is one of the largest electronic speed enforcement system in PUBLIC ABOUT IMMINENT THREATS AND
scale in the country. Although there is a significant increase in traffic on our highways, the MAKE ANNOUNCEMENTS IN ANY KIND OF
accident rates have been decreasing with the effective use of this system. EMERGENCY SITUATIONS AND DISASTERS.
In Corridor 10 toll collection system developed for the Republic of Macedonia, six out of the
total seven stations have been completed and opened to traffic. The state of the art tolling
system developed by ASELSAN integrates DSRC based tolling, contactless smart card
tolling and cash based tolling systems.
INDUSTRIAL AUTOMATION SYSTEMS

Within the scope of Industrial Automation Systems, activities such as Mass Notification
Siren Systems, Scada Systems, Energy Management and Smart Grid Systems, and
Intrusion Detection Systems have been carried out.
MASS NOTIFICATION SIREN SYSTEM

With regard to the contract signed between ASELSAN and the Republic of Turkey, Ministry
of Interior Disaster and Emergency Management Authority (AFAD) on 19th February 2019,
ASELSAN has been developing remote controlled Mass Notification Siren System in order
to rapidly warn and inform public about imminent threats and make announcements
either by delivering different kinds of notification signals, pre-recorded messages or live
announcements in any kind of emergency situations and disasters.
The mass notification siren system consists of primary and secondary command centers
in each city and the siren units with subsidiary components on the field that can broadcast
embedded alarms and warning records in addition to making live announcement.

The secure connection between the command centers and siren units on the field is
provided by ASELSAN’s JEMUS radio infrastructure.
Furthermore, the special application software, which will be used in the command centers,
has been developed by ASELSAN. In addition to the command center software, the system
can also be integrated into the countrywide Communication & Information Distribution
(HAY) infrastructures. The user interfaces where software developments & related system
DEPAR LOW VOLTAGE integrations are also developed by ASELSAN. With the experience gained from the Mass
MONITORING AND Notification Siren System Project, it is planned to extend the coverage by increasing
CONTROL UNIT number of cities in the upcoming years in Turkey.
SCADA SYSTEMS
In 2019, ASELSAN accelerated its efforts on developing national SCADA software that
is flexible, reliable and can be tailored to customer needs. In this context; software
development studies were conducted based on the contract signed between Presidency
of Defense Industries and ASELSAN in order to develop Oil SCADA Software. Line valve
stations and pumping stations along Batman-Dörtyol Crude Oil Pipeline site surveys were
finished and the detailed engineering activities were completed. In the automation system,
twenty four line valve stations and four pumping stations will be connected together and
ASELSAN-made ARTU will be utilized. All other tasks under the signed contract will be
completed by the system commissioning and inauguration in 2021.
ENERGY MANAGEMENT AND SMART GRID SYSTEMS

System solutions consisting of critical hardware, algorithms and software for smart grid
systems have been developed in order to use electrical energy in an efficient, flexible
and effective manner throughout Turkey from production to final consumption. In this
context, in order to reduce the dependence on import, to ensure the safe and high quality
production, transmission and distribution of energy:
• The development of National Electricity SCADA and National Energy Management
Systems continued.
• Advanced Remote Terminal Unit (ASELSAN ARTU) used at the endpoints of smart grids
has reached the final stage of its development phase. ASELSAN ARTU, which we expect
FILEDS OF ACTIVITY
that it will find widespread use in electricity, natural gas, oil and water networks, has
achieved its first commercial sale.
• Activities were carried out to expand the use of DEPAR low voltage monitoring and
control system, which was developed for the transformation of the electricity distribution
network to smart grids.

MIDAS
Recently, Distributed Acoustic Sensing (DAS) technology is more ubiquitously used in long
lines, such as pipelines, borders and railways for the purpose of monitoring and securing.
Similarly, in order to improve situational awareness in critical infrastructures and facilities
in Smart Cities, similar technologies are utilized. In this context, the MIDAS product whose
development activities started in 2014 has been used in various projects and a total of fifty
systems has been installed.
• Within the scope of the university-industry collaboration vision, MIDAS has been
developed in collaboration with the NANOTAM Research Center at Bilkent University.
Considering the final product, this relationship is a successful example of the university– MIDAS / P
industry collaboration. Detection and classification algorithms of the system are based
on Artificial Intelligence technology. The first contribution to the literature in this subject
is made by ASELSAN and a relevant patent is obtained.
• Field experiments have been conducted on better performance on railway security and
carriage tracking and signalization for MIDAS to be enhanced.
• A pilot project with the Istanbul Gas Distribution Inc. (IGDAS), an Istanbul Municipality
(IBB) firm has been signed for monitoring excavations without a permit that may damage
the gas pipelines under the city roads. With the on-going project, not only gas pipelines
but also water pipelines, fiber optic and other infrastructural lines can be monitored.
• R&D project for leak detection on gas pipelines in the city has been launched after a
contract signed between Bursagaz Dagitim A.S. and ASELSAN with the approval of EPDK
(Energy Market Regulatory Authority).
Because MİDAS is considered to have a high potential within the scope of export growth
targets, the studies towards signing an OEM agreement with an American company for
worldwide sales have reached an important stage.
MIDAS / I MIDAS / B MIDAS / R

ASELSAN HAS BEEN WORKING ON PROJECTS HEALTHCARE SYSTEMS
AND SOLUTIONS IN ORDER TO REDUCE
ASELSAN has been working on projects and solutions in order to reduce the dependency
THE DEPENDENCY ON IMPORT IN THE
on import in the field of medical technologies and to increase local design and production
FIELD OF MEDICAL TECHNOLOGIES AND TO capabilities. In this context, design activities have been continuing in the development of
INCREASE LOCAL DESIGN AND PRODUCTION the Mobile Digital X-Ray System and Magnetic Resonance Imaging System (MRI) projects.
CAPABILITIES.
Additionally, there is ongoing work on a high voltage x-ray generator that is one of the
critical components of the radiography devices. TÜBİTAK has recently announced a new
grant program, namely SAYEM that aimed at the development of products with high
technological content. ASELSAN applied to SAYEM Phase-1 for the commercialization of
Mobile Digital X-Ray and Magnetic Resonance Imaging devices and was awarded with a
grant. As part of this grant, in 2019, commercialization road maps for these two devices
were studied.
The tender documents for the Industry Cooperation Project concerning five medical
devices (magnetic resonance imaging, computed tomography, ultrasonography, patient
monitor, digital radiography) were released for public bidding in May 2018. The tender
was going to be held in accordance with the Industry Cooperation Program regulation
prepared under the leadership of the Republic of Turkey, Ministry of Science and
Technology. The bid preparation activities have been conducted for this tender which was
again postponed to 30th of June 2020. During the preparation, in addition to the supply
price, the commitments on domestic production, technology transfer to the country,
investment and exports were taken into account.
The collaboration opportunities for joint product development with local medical device
manufactures have been studied. Our first joint product development agreement has
been signed with METSİS, a national defibrillator manufacturer, for Automated External
Defibrillators (AED). The newly designed AED will be launched as a commercial product
in 2020. As part of this collaborative effort, pre design activities for a Manuel Defibrillator/
Monitor has also been started.
FILEDS OF ACTIVITY
Moreover, ASELSAN has been working in three different areas in healthcare sector:
medical imaging, life support systems and in vitro diagnostics. With the aim of developing
medical devices in these areas, it is planned to build collaboration with both local
and international companies as well as research centers to develop mammography,
coagulation test device, glucometer, heart lung machine and ventilator for intensive care
units.

WE ARE
ONE OF THE
BIGGEST
100 GLOBAL
DEFENCE COMPANY

FINANCIAL
INFORMATION

PROVEN
TECHNOLOGY

CONTENTS
FINANCIAL INFORMATION FOR THE YEAR 2019
PREPARED AS PER CMB SERIAL II, NO: 14.1

2 Consolidated Statement of Financial Position
5 Consolidated Statement of Profit or Loss and other Comprehensive Income
7 Consolidated Statement of Changes in Equity
8 Consolidated Statement of Cash Flows
9 Notes for the Consolidated Financial Statements
70 Independent Auditor’s Report
72 Annual Report of the Board of Directors
125 Independent Auditor’s Report for the Annual Report of the Board of Directors
128 Statement of Responsibility
Board of Directors Assesment Report Regarding Committee Activities in 2019
COMMITTEE WORK DIRECTIVES

131 Audit Committee Work Directives
135 Early Detection and Management of Risk Committee Work Directives
136 Corporate Governance Committee Work Directives
PROFIT DISTRIBUTION PROPOSAL
ASELSAN 2019 Annual Report Financial Information 1

Aselsan Elektronik Sanayi ve Ticaret Anonim Şirketi and Its Subsidiaries
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS OF 31 DECEMBER 2019
(Amounts are expressed in thousands of Turkish Lira (“TL”) and in thousands of ”Foreign Currency” unless otherwise stated.)
Audited
31 December 31 December
Note References 2019 2018
ASSETS
Current Assets 13.976.498 11.616.680

Cash and Cash Equivalents 3 3.513.842 3.115.691
Financial Investments 29 6.039 --
Trade Receivables 6 3.884.933 3.072.113
From Related Parties 5 1.118.103 772.851
From Third Parties 2.766.830 2.299.262
Other Receivables 7 380.554 204.117
From Related Parties 5 1.150 24
From Third Parties 379.404 204.093
Inventories 9 4.473.927 3.576.618
Prepaid Expenses 10 1.320.266 1.319.330
From Related Parties 5 284.767 311.668
From Third Parties 1.035.499 1.007.662
Other Current Assets 18 396.937 328.811
Non-Current Assets 11.656.545 7.856.951

Financial Investments 29 988.464 778.665
Trade Receivables 6 5.584.899 2.826.939
From Related Parties 5 4.266.624 1.976.539
From Third Parties 1.318.275 850.400
Other Receivables 7 1.064 764
From Third Parties 1.064 764
Equity Accounted Investments 8 121.769 93.586
Property, Plant and Equipment 11 1.573.931 1.336.297
Intangible Assets 12 1.276.578 1.082.067
Prepaid Expenses 10 584.653 504.399
From Related Parties 5 299.369 155.933
From Third Parties 285.284 348.466
Deferred Tax Assets 27 785.951 734.092
Other Non-Current Assets 18 739.236 500.142
TOTAL ASSETS 25.633.043 19.473.631
The accompanying notes are an integral part of the consolidated financial statements.
2 ASELSAN 2019 Annual Report Financial Information

Audited
Note 31 December 31 December
References 2019 2018
LIABILITIES
Current Liabilities 7.743.870 4.684.478

Short-term Financial Liabilities 30 1.612.321 698.526
Short-term Portion of Long-term Financial Liabilities 30 611.198 67.277
Trade Payables 6 3.607.856 2.548.583
To Related Parties 5 763.186 593.911
To Third Parties 2.844.670 1.954.672
Employee Benefit Obligations 17 145.939 34.873
Other Payables 7 58.500 2.732
To Related Parties 5 -- 60
To Third Parties 58.500 2.672
Government Grants and Incentives 13 43.194 53.818
Deferred Income 10 580.389 632.645
To Related Parties 5 418.578 510.751
Corporate Tax Liability 27 12.847 2.836
Short-term Provisions 1.067.379 634.951
For Employee Benefits 17 72.819 49.382
Other 15 994.560 585.569
Other Current Liabilities 18 4.247 8.237
Non-Current Liabilities 4.320.274 4.612.132

Long-term Financial Liabilities 30 9.098 20.234
Trade Payables 6 1.860.305 1.768.283
To Related Parties 5 1.425.811 1.617.969
Other Payables 7 4.929 106
To Third Parties 4.929 106
Deferred Income 10 1.837.987 2.296.513
To Related Parties 5 1.262.598 1.669.160
Long-term Provisions 607.561 526.996
Long-term Provisions for Employee Benefits 17 225.731 198.611
Other 15 381.830 328.385
Other Non-Current Liabilities 394 --

Audited
EQUITY 13.568.899 10.177.021
Equity Attributable to Equity Holders of the Parent 13.498.388 10.132.601

Share Capital 19 1.140.000 1.140.000
Inflation Adjustments on Share Capital Differences 19 98.621 98.621
Share Premiums 2.796.723 2.796.723
Other Comprehensive Income/(Expense) that will not be
Reclassified to Profit or (Loss) 175.077 189.358
Gain on Revaluation of Property, Plant and Equipment 207.431 207.431
Gain/Loss on Remeasurement of Defined Benefit Plans (32.354) (18.073)
Other Cumulative Comprehensive Income/(Expense) will be
Reclassified to Profit/Loss 968.740 755.119
Gain on Revaluation of Available for Sale Financial
Assets 933.298 729.612
Cumulative Translation Adjustments 35.442 25.507
Restricted Reserves 19 276.827 172.687
Retained Earnings 4.701.953 2.661.896
Net Profit for the Year 3.340.447 2.318.197
Non-Controlling Interests 70.511 44.420
TOTAL LIABILITIES AND EQUITY 25.633.043 19.473.631

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS and OTHER
COMPREHENSIVE INCOME FOR THE TWELVE-MONTH PERIOD ENDED 31 DECEMBER 2019
Audited
1 January- 1 January-
PROFIT OR LOSS
Revenue 20 13.012.551 9.008.516
Cost of Sales (-) 20 (9.640.818) (6.797.424)
GROSS PROFIT 3.371.733 2.211.092
General Administrative Expenses (-) 21 (343.456) (221.719)

Marketing Expenses (-) 21 (204.118) (150.760)
Research and Development Expenses (-) 21 (211.565) (114.408)
Other Operating Income 22 3.818.370 5.654.167
Other Operating Expenses (-) 22 (3.253.702) (5.153.276)
OPERATING PROFIT 3.177.262 2.225.096
Income From Investing Activities 23 6.379 4.789

Shares of Profit of Equity Accounted Investees 8 2.325 (8.951)
OPERATING PROFIT BEFORE FINANCIAL EXPENSE 3.185.966 2.220.934

Financial Income 24 985.207 876.479
Financial Expense (-) 25 (862.642) (855.647)
PROFIT BEFORE TAX FROM CONTINUING OPERATIONS 3.308.531 2.241.766
Tax Income from Continuing Operations 44.142 77.581

- Current Corporate Tax Expense (-) 27 (14.868) (11.022)
- Deferred Tax Income 27 59.010 88.603
PROFIT FOR THE PERIOD FROM CONTINUING OPERATIONS 3.352.673 2.319.347
Profit for the Period Attributable to

Non-Controlling Interest 12.226 1.150
Owners of the Company 28 3.340.447 2.318.197
3.352.673 2.319.347
Earnings for per 100 Shares (in full kuruş) 28 293,02 214,69

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME FOR THE TWELVE-MONTH PERIOD ENDED 31 DECEMBER 2019
Audited
PROFIT FOR THE YEAR 3.352.673 2.319.347
OTHER COMPREHENSIVE INCOME
Items that will not to be Reclassified Subsequently in Profit or Loss (14.281) (19.729)
Gain on Remeasurement of Defined Benefit Plans 17 (17.851) (24.662)
Deferred Tax Expense 27 3.570 4.933
Items that may be Reclassified Subsequently to Profit or Loss 213.621 214.429

Gain on Revaluation of Available for Sale Financial Assets 26 214.406 204.387
Cumulative Translation Adjustments 26 9.935 20.261
Deferred Tax Expense 26-27 (10.720) (10.219)
OTHER COMPREHENSIVE INCOME 199.340 194.700
TOTAL COMPREHENSIVE INCOME 3.552.013 2.514.047
Total Comprehensive Income Attributable to

Non-Controlling Interest 12.226 1.150
Owners of the Company 3.539.787 2.512.897
3.552.013 2.514.047

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR
ENDED 31 DECEMBER 2019
Other Comprehensive
Income/Expense
Other Comprehensive Income/ that may not to
Expense that will not to be be Reclassified
Reclassified Subsequently to Subsequently to Profit
Profit or Loss or Loss Retained Earnings
Inflation Share Equity

Adjustments Issuance Remeasurement Net Profit/ Attributable Non-
Share on Share Premiums/ Revaluation of Defined Fair Value Translation Restricted Retained (Loss) to Owners of Controlling
Capital Capital (Discounts) Reserves Benefit Plans Reserves Reserves Reserves Earnings for the Year the Company Interests Total
Balance as of 1 January 2018 1.000.000 98.621 -- 207.431 1.656 535.444 5.246 124.062 1.419.220 1.375.901 4.767.581 542 4.768.123
Transfers -- -- -- -- -- -- -- 48.625 1.242.676 (1.291.301) -- -- --
Capital Increase 140.000 -- 2.796.723 -- -- -- -- -- -- -- 2.936.723 -- 2.936.723
Total Comprehensive Income -- -- -- -- (19.729) 194.168 20.261 -- -- 2.318.197 2.512.897 1.150 2.514.047
Consolidation Effect of New
Establishment -- -- -- -- -- -- -- -- -- -- -- 42.728 42.728
Dividends -- -- -- -- -- -- -- -- -- (84.600) (84.600) -- (84.600)
Balance as of 31 December 2018
(Closing Balance) 1.140.000 98.621 2.796.723 207.431 (18.073) 729.612 25.507 172.687 2.661.896 2.318.197 10.132.601 44.420 10.177.021
Balance as of 1 January 2019 1.140.000 98.621 2.796.723 207.431 (18.073) 729.612 25.507 172.687 2.661.896 2.318.197 10.132.601 44.420 10.177.021
Transfers -- -- -- -- -- -- -- 104.140 2.040.057 (2.144.197) -- -- --
Capital Increase -- -- -- -- -- -- -- -- -- -- -- -- --
Total Comprehensive Income -- -- -- -- (14.281) 203.686 9.935 -- -- 3.340.447 3.539.787 12.226 3.552.013
Consolidation Effect of New
Establishment -- -- -- -- -- -- -- -- -- -- -- 13.865 13.865
Dividends -- -- -- -- -- -- -- -- -- (174.000) (174.000) -- (174.000)
Balance as of 31 December 2019
(Closing Balance) 1.140.000 98.621 2.796.723 207.431 (32.354) 933.298 35.442 276.827 4.701.953 3.340.447 13.498.388 70.511 13.568.899

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR
Audited
Revised
A. Cash Flows from Operating Activities 850.900 272.200
Profit for the Period 3.352.673 2.319.347
Adjustments to Reconcile Profit for the Period 1.798.425 1.907.656
- Adjustments for Depreciation and Amortization Expense 11-12 241.216 171.391
- Adjustments for Impairment Loss (Reversal of Impairment Loss) 64.450 (36.780)
Adjustments for Impairment Loss (Reversal of Impairment Loss) of Receivables 6 56.742 (19.239)
Adjustments for Impairment Loss (Reversal of Impairment Loss) of Inventories 9 7.708 (17.541)
-Adjustments for Provisions 729.803 747.129
Adjustments for (Reversal of) Provisions Related with Employee Benefits 17 76.847 55.008
Adjustments for (Reversal of) Lawsuit and/or Penalty Provisions 15 198.240 385.888
Adjustments for (Reversal of) Warranty Provisions 15 448.790 305.852
Adjustments for (Reversal of) Other Provisions 15 5.926 381
- Adjustments for Interest (Income) Expenses (278.178) (112.645)
Adjustments for Interest Income 22-24 (795.743) (657.252)
Adjustments for Interest Expense 22-25 517.565 544.607
- Adjustments for Retained Profit of Equity Accounted Investees 8 (2.325) 8.951
- Adjustments for Tax (Income)/Expenses 27 (44.142) (77.581)
-Other Adjustments for which Cash Effects are Investing or Financing Cash Flow 137.302 108.318
-Other Adjustments to Reconcile Profit (Loss) 950.299 1.098.873
Changes in Working Capital (4.060.678) (3.715.776)
- Decrease (Increase) in Trade Receivables (3.374.680) (1.268.990)
- Decrease (Increase) in Other Receivables Related with Operations (176.737) (91.459)
- Decrease (Increase) in Inventories (877.880) (1.316.341)
- Decrease (Increase) in Prepaid Expenses 10 (49.364) (690.885)
- Increase (Decrease) in Trade Payables 1.302.132 770.883
- Increase (Decrease) in Employee Benefit Obligations 111.066 (11.260)
-Adjustments for Stage of Completion of Construction or Service Contracts in Progress 83.418 (731.312)
- Increase (Decrease) in Other Operating Payables 60.591 1.239
- Increase (Decrease) in Government Grants and Subsidies (10.624) 12.175
- Increase (Decrease) in Deferred Income (891.292) (87.993)
- Other Increase (Decrease) in Working Capital (237.308) (301.833)
Cash Flows From Operations 1.090.420 511.227
Payments Related with Provisions for Employee Benefits 17 (44.141) (25.426)
Payments Related with Other Provisions 15 (190.520) (204.698)
Income Taxes Refund (Paid) (4.859) (8.903)
B. Cash Flows From Investing Activities (1.695.069) (1.746.003)
Proceeds from Sales of Property, Plant, Equipment and Intangible Assets 2.939 1.057
Purchase of Property, Plant and Equipment 11 (355.248) (343.541)
Purchase of Intangible Assets 12 (1.301.610) (1.394.893)
Proceeds from Derivative Instruments (6.039) --
Dividends Received 23 4.618 5.222
Other Cash Outflows (39.729) (13.848)
C. Cash Flows From Financing Activities 1.256.612 3.268.754
Proceeds from Borrowings 3.568.237 1.128.345
Repayments of Borrowings (2.263.577) (991.092)
Payments of Finance Lease Liabilities -- 2.936.723
Dividends Paid 19 (174.000) (84.600)
Interest Paid 25 (88.153) (25.142)
Interest Received
214.105 304.520
NET INCREASE/DECREASE IN CASH AND CASH EQUIVALENTS BEFORE
EFFECT OF EXCHANGE RATE CHANGES (A+B+C) 412.443 1.794.951
D. EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS 13.573 30.685
NET INCREASE/DECREASE IN CASH AND CASH EQUIVALENTS (A+B+C+D) 426.016 1.825.636
E. CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD 3.087.387 1.261.752
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD (A+B+C+D+E) 3 3.513.403 3.087.388

1. ORGANIZATION AND OPERATIONS OF THE GROUP

ASELSAN Elektronik Sanayi ve Ticaret Anonim Şirketi (“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, electro-optics, guidance, computer, data processing, encryption, security, mechanics, chemistry and related areas 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.
As of the reporting date, the Company has been organized under five divisions under the Vice Presidential Sector with regard to investment
and production requirements of projects. These divisions comprise Communication and Information Technologies Vice Presidency (“HBT”),
Radar and Electronic Warfare Systems Vice Presidency (“REHİS”), Defense Systems Technologies Vice Presidency (“SST”) and Microelectronics,
Guidance & Electro-Optics Vice Presidency (“MGEO”) and Transportation, Security, Energy and Automation Systems Vice Presidency (“UGES”).
In addition to the Vice Presidencies above, the Company organization also includes the Financial Management Vice Presidency, Corporate
Management Vice Presidency, Technology and Strategy Management Vice Presidency and Business Development and Marketing Vice
Presidency making a total of four Vice Presidencies; in addition to these, there are also Legal Affairs and Private Secreteriat.
The Company maintains engineering operations in Ankara, Middle East Technical University (METU) Teknokent and Ankara Teknokent;
production and engineering operations in Macunköy, Akyurt and Gölbaşı. General Management is located in Ankara Macunköy. Furthermore SST
and REHİS Sector Presidency management offices are located in Istanbul Teknopark.
Turkish Armed Forces Foundation (“TSKGV”) is the main shareholder of the Company which holds 74,20 percent of the capital and maintains
control of the Company. TSKGV 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 have been quoted in Borsa İstanbul Anonim Şirketi (“BIST”)
since 1990. As of 31 December 2019, 25,80 percent of the Company’s shares are publicly traded (31 December 2018: 25,70 percent) (Note 19).
The Company’s trade registered address is Mehmet Akif Ersoy Mahallesi 296. Cadde No: 16 06370 Yenimahalle/Ankara. The average number of
personnel employed by the Group as of 31 December 2019 is 6.797 (31 December 2018: 5.694).
The Company’s consolidated subsidiaries are ASELSAN Baku (“ASELSAN Baku”), Mikroelektronik Ar-Ge Tasarım ve Ticaret Ltd. Co. (“Mikro AR-
GE”), ASELSANNET Elektronik ve Haberleşme Sistemleri Sanayi Ticaret İnşaat ve Taahhüt Ltd. Co. (“ASELSANNET”), ASELSAN Malaysia Sdn. Bhd.
(“ASELSAN Malaysia”), Aselsan Konya Silah Sistemleri Anonim Şirketi (“ASELSAN Konya”), BİTES Savunma Havacılık ve Uzay Teknolojileri Yazılım
A.Ş. (“BITES”), ASELSAN Global Dış Ticaret ve Pazarlama A.Ş. (“ASELSAN GLOBAL”), ULAK Haberleşme A.Ş. (“ULAK”). They are collectively
referred as the “Group” in the accompanying notes.
The Company has three branch offices; Aselsan Elektronik Sanayi ve Ticaret Anonim Şirketi EP Co. (“ASELSAN South Africa”), ASELSAN
Makedonya Corridor-10 Highway Toll Collection System Project (“ASELSAN Macedonia”) and ASELSAN Kıbrıs İleri Teknolojiler Araştırma Merkezi
(“ASELSAN Kıbrıs”) located in South Africa, Macedonia and Turkish Republic of Northern Cyprus (“KKTC”), respectively. The branches are
included in the consolidated financial statements.
2. BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS
2.1 The Basis of Presentation
Statement of Compliance to TAS
The accompanying consolidated financial statements are prepared in accordance with the requirements of CMB Communiqué Serial II, No: 14.1
“Basis of Financial Reporting in Capital Markets” (“Communiqué”), which were published in the Official Gazette No: 28676 on 13 June 2013
and in accordance with the Turkish Accounting Standards (“TAS”) and Interpretations that have been put into effect by the Public Oversight
Accounting and Auditing Standards Authority (“POA”).
The consolidated financial statements has been presented with examples of Financial Statement and User Guide in the Official Gazette No: 30794
on 7 June 2019 by the POA. All reports have suited the TFRS formats.
The consolidated financial statements are prepared according to historical cost accounting except for the revaluation of land and financial
instruments.

2. BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS (continued)

2.1 The Basis of Presentation (continued)
Approval of the Consolidated Financial Statements
These consolidated financial statements have been approved for issue by the Board of Directors with the resolution number 1067 on 11 February
2019. There is no authority other than General Assembly and legal entities has the right to amend the consolidated financial statements.
Functional Currency
The individual financial statements of each Group entity are presented in the currency of the primary economic environment (“Functional
Currency”) in which the entity operates.
The Company’s reporting currency is Turkish Lira (“TL”). 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 for the consolidated financial
statements. Amounts are expressed in thousands of TL or Foreign Currency unless otherwise stated. Kuruş, Turkish Currency subunit and 1 TL is
equal to 100 Kuruş.
Preparation of Financial Statements in Hyperinflationary Periods
CMB, with its resolution dated 17 March 2005 numbered 11/367 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/TAS 29”) “Financial Reporting in Hyperinflationary Economies” has
not been applied since 1 January 2005.
Basis of Consolidation
Subsidiaries:
The details of the subsidiaries of the Group are as follows:
Group’s proportion of ownership
and voting power held (%)
Functional 31 December 31 December

Subsidiaries Location Currency 2019 2018 Main Activity
ASELSANNET Turkey TL 100 100 Communication systems
ASELSAN Baku Azerbaijan AZN 100 100 Marketing and sales of the group products
ASELSAN GLOBAL Turkey TL 100 -- Export
Mikro AR-GE Turkey TL 85 85 Microelectronic R&D projects

ASELSAN Malaysia Malaysia MYR 100 100 Remote controlled weapon systems
ASELSAN Konya Turkey TL 51 51 Weapon and weapon systems
Defense, Aerospace, Space Technologies,

BITES Turkey TL 51 -- Software
ULAK Turkey TL 51 -- Communication systems
The consolidated financial statements include the financial statements of 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 when if facts and circumstances arise there are changes to one or more of the
three elements of control listed above.


Basis of Consolidation (continued)
Subsidiaries (continued):
The 51% shares of BİTES are transferred to ASELSAN on 28 February 2019, after share transfer agreement has signed on 13 February 2019.
The share transfer agreement on the 51% shares of ULAK Haberleşme A.Ş. which wholly owned by SSTEK Savunma Teknolojileri A.Ş. has signed
on 1 October 2018. Capital structure is as follows; 51% ASELSAN, 49% SSTEK Savunma Teknolojileri A.Ş.
Aselsan Konya Silah Sistemleri A.Ş. has been established with Konya Savunma Sanayi A.Ş. and registration of the entity has been completed in 12
November 2018. Capital structure is as follows; 51% ASELSAN, 49% Konya Savunma Sanayi A.Ş.
The Company titled “ASELSAN Global Dış Ticaret ve Pazarlama A.Ş.” was established in order to carry out import, export and marketing activities
of all kinds of civil and military electronic products and systems. The company is wholly owned by ASELSAN A.Ş. The company is established with
50.000 TL capital. The establishment was registered on August 06, 2019.
Even though the Company has voting rights less than a majority, if it has ability to manage the operation of the investee unintentionally, then the
Group assess that it has control over that investee. 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:
• comparison of voting rights of the Group and the others,
• potential voting rights held by the Group, and others,
• rights arising from contractual arrangements; and
• any additional facts and circumstances that indicate the Group 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).
The financial statements of subsidiaries are included in the consolidated financial statements from the date on which control commences until
the date on which control ceases. 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.
Each item of profit or loss and 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 align with the Group accounting policies and the Group’s
accounting policies.
All intragroup balances, equity, income and expenses, profits and losses and cash flows relating to transactions between members of the Group
are eliminated during consolidation.


Joint Ventures
The details of the Group’s interests in joint ventures as of 31 December 2019 and 2018 are as follows:
Group’s proportion of ownership
and voting power held (%)
Country of
establishment 31 December 31 December
Joint Ventures Principal Activity and operation 2019 2018
Hassas Optik Sanayi ve Ticaret
Sensitive optic technologies Turkey 50 50
Anonim Şirketi (“ASELSAN Optik”)
Mikro Nano Teknolojileri Sanayi ve Production of micro and nano sized devices which
Ticaret Anonim Şirketi (“ASELSAN contains semi-conductive and similar technological Turkey 50 50
Bilkent”) materials
International Golden Group
Production, integration, sales and technical United Arab
(“IGG”) ASELSAN Integrated 49 49
maintenance service of high technology product Emirates
Systems LLC (“IGG ASELSAN”)
Kazakhstan ASELSAN Engineering Production, sales and technical maintenance service of
Kazakhstan 49 49
LLP (“ASELSAN Kazakhstan”) electronic and electro-optic devices and systems
ASELSAN Middle East PSC Production, sales and technical maintenance service of
Jordan 49 49
(“ASELSAN Jordan”) electronic and electro-optic devices and systems
Saudi Arabian Defence Electronics
Production and sale of radar, electronics, warfare and
Corporation Saudi Arabia 50 50
electro-optic products
(“SADEC LLC”)
TÜYAR Mikroelektronik Sanayi ve Production of micro and nano-sized devices containing
Turkey 51 51
Ticaret Anonim Şirketi (“TÜYAR”) semiconductor
Command and control systems, thermal and night
BARQ QSTP LLC. (“BARQ QSTP
vision camera, crypto, remote-controlled weapon Qatar 48 48
LLC.”)
systems
To create investment opportunities in technology
Teknohab Teknoloji Geliştirme intensive areas, provide job opportunities to
Bölgesi Yönetici Anonim Şirketi researchers and skilled people, help technology Turkey 30 30
(“TEKNOHAB”) transfers and facilitate foreign capital to enter our
country that will enable high technology
EHSİM Elektronik Harp Sistemleri
Electronic Warfare and Tactical Command Systems Turkey 50 --
Müh. Tic. A.Ş. (“EHSİM”)
Realizing Human Resources studies, Consultancy
with respect to HR studies, acreditation services
TR Eğitim ve Teknoloji A.Ş. and trainings for every level, educational, cultural, Turkey 50 --
art, sports, fair organizations and digital marketing
operations.


Joint Ventures (continued):
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.
A share transfer agreement for the acquisition of 50% of the total shares of Havelsan EHSİM Hava Elektronik Harp Sistemleri Mühendislik Ticaret
Anonim Şirketi, has been signed. 1 percent of the shares has taken from Havelsan Hava Elektronik Sanayi ve Ticaret A.Ş. and 49 percent of the
shares has taken from real person partners. Payment for share transfer to HAVELSAN A.Ş. and to real person partners were completed on 18
September 2019. At the extraordinary general meeting held on September 9, 2019, the Company’s title was changed to EHSİM Elektronik Harp
Sistemleri Müh. Tic. A.Ş. EHSİM operates in Electronic Warfare and Tactical Command and Control systems.
A share transfer agreement was signed for the acquisition of 50% of TR Eğitim ve Teknoloji A.Ş. from TUSAŞ Türk Havacılık ve Sanayii A.Ş. The
payment regarding the share transfer was made to TUSAŞ A.Ş. on 09 September 2019.
The Group’s joint ventures; IGG ASELSAN and ASELSAN Kazakhstan have been established in 2011, ASELSAN Jordan has been established in
2012 and ASELSAN Optik and ASELSAN Bilkent which were established in 2014, SADEC LLC has been established in 2016, TÜYAR has been
established in 2017, ULAK has been established in 2018, TEKNOHAB has been established in 2018 and EHSİM has been established in 1998 were
included in the condensed consolidated interim financial statements by using the equity method. Since BARQ QSTP LLC and TR Eğitim Teknoloji
have not started to operate yet, there is no consolidation effect on the Group’s financial statements.
2.2 Comparative Information and Restatement of Prior Period Consolidated Financial Statements
In order to determine the financial position and performance trends, the Group’s consolidated financial statements are presented comparatively
with the corresponding figures. For the purpose of having consistency with the current term’s presentation of consolidated financial statements,
comparative information is reclassified and significant differences are explained if necessary.
While purchase expenses regarding research and development in tangible assets in 2019 are subject to cost of sales decreasing the profit for
the period and having the characterisctic of expenses not providing cash outflow, a positive reclassification has been made and posted under “
Adjustments to reconcile profit for the period”. Such cash outflows and inflows were reported under “Cash flows from investing activities” as net
value previously.
The reclassification of 31 December 2018 is as below.
31 December 2018 31 December 2018
Cash Flow Statement (Previously Reported) Reclassification Reported
Other Adjustments to Reconcile Profit (Loss) 132.003 998.502 1.130.505
Decrease (Increase) in Prepaid Expenses (723.315) 32.429 (690.886)
Purchase of Intangible Assets (396.392) (998.502) (1.394.894)
Other Cash Outflows 18.583 (32.429) (13.846)
2.3 Accounting Policies, Changes in Accounting Estimates and Errors

Significant changes in accounting policies and errors are applied retrospectively and prior period financial statements are restated, changes in
accounting estimates are reflected to the financial in current period profit/loss.
When change in estimate in accounting policies are related with only one period, changes are applied on the current period but if the estimated
changes are for the following periods, changes are applied both on the current and following periods prospectively.


2.4 New and Revised Turkish Accounting Standards
a) Standards Adopted as of 01 December 2019
TFRS 16 Leases
On April 2018, Public Oversight Accounting and Auditing Standarts Authority (“POA”) has issued the new leasing standard which will replace TAS 17
Leases, TFRSI 4 Determining Whether an Arrangement Contains a Lease, TASI 15 Operating Leases – Incentives, and TASI 27 Evaluating the Substance
of Transactions Involving the Legal Form of a Lease and consequently changes to TAS 40 Investment Properties. TFRS 16 Leases eliminates the current
dual accounting model for lessees, which distinguishes between on-balance sheet finance leases and off-balance sheet operating leases. Instead, there
is a single, on-balance sheet accounting model that is similar to current finance lease accounting. Lessor accounting remains similar to current practice.
The standard is effective for annual periods beginning on or after 1 January 2019.
Within the framework of the amendment, as of the date of transition, the Group has accounted for right of use assets and the lease obligation amounting
TL 6.264 on its consolidated financial statements.
Amendments to TAS 28- Long-term Interests in Associates and Joint Ventures
In December 2017, POA has issued amendments to TAS 28 to clarify that entities also apply TFRS 9 to other financial instruments in an associate or joint
venture to which the equity method is not applied. These include long-term interests that, in substance, form part of the entity’s net investment in an
associate or joint venture. An entity applies TFRS 9 to such long-term interests before it applies related paragraphs of TAS 28. In applying TFRS 9, the
entity does not take account of any adjustments to the carrying amount of long-term interests that arise from applying TAS 28. The amendments are
effective for periods beginning on or after 1 January 2019, with earlier application permitted. The standard is effective for annual periods beginning on or
after 1 January 2019. This amendment have no effect on Group’s consolidated financial statements.
TFRS 23 –Uncertainty Over Income Tax Treatments
On May 2018, POA issued TFRSI 23 Uncertainty over Income Tax Treatments to specify how to reflect uncertainty in accounting for income taxes. It may
be unclear how tax law applies to a particular transaction or circumstance, or whether a taxation authority will accept a company’s tax treatment. TAS
12 Income Taxes specifies how to account for current and deferred tax, but not how to reflect the effects of uncertainty. TFRSI 23 provides requirements
that add to the requirements in TAS 12 by specifying how to reflect the effects of uncertainty in accounting for income taxes. The standard is effective for
annual periods beginning on or after 1 January 2019. This amendment has no effect on Group’s consolidated financial statements.
Amendments to TAS 19 - Plan Amendment, Curtailment or Settlement -
On 15 January 2019, POA issued Plan Amendment, Curtailment or Settlement (Amendments to TAS 19). The amendments clarify the accounting when
a plan amendment, curtailment or settlement occurs. A company now uses updated actuarial assumptions to determine its current service cost and net
interest for the period; and the effect of the asset ceiling is disregarded when calculating the gain or loss on any settlement of the plan and is dealt with
separately in other comprehensive income (OCI). The standard is effective for annual periods beginning on or after 1 January 2019. This amendment has
no effect on Group’s consolidated financial statements.
Amendments to TFRS 9 - Prepayment features with negative compensation
On December 2017, POA has issued amendments to TFRS 9 to clarify that financial assets containing prepayment features with negative compensation
can now be measured at amortised cost or at fair value through other comprehensive income (FVOCI) if they meet the other relevant requirements of
TFRS 9. Under TFRS 9, a prepayment option in a financial asset meets this criterion if the prepayment amount substantially represents unpaid amounts
of principal and interest, which may include “reasonable additional compensation” for early termination of the contract. The standard is effective for
Annual Improvements to TFRSs 2015 - 2017 Cycle
TFRS 3 Business Combinations and TFRS 11 Joint Arrangements
TFRS 3 and TFRS 11 are amended to clarify how a company accounts for increasing its interest in a joint operation that meets the definition of a
business. If a party obtains control, then the transaction is a business combination achieved in stages and the acquiring party remeasures the previously
held interest at fair value. If a party maintains (or obtains) joint control, then the previously held interest is not remeasured. The standard is effective for


2.4 New and Revised Turkish Accounting Standards (continued)
TAS 12 Income Taxes
TAS 12 is amended to clarify that all income tax consequences of dividends (including payments on financial instruments classified as equity) are
recognised consistently with the transactions that generated the distributable profits – i.e. in profit or loss, other comprehensive income (OCI) or equity.
The standard is effective for annual periods beginning on or after 1 January 2019. This amendment has no effect on Group’s consolidated financial
statements.
TAS 23 Borrowing Costs
TAS 23 is amended to clarify that the general borrowings pool used to calculate eligible borrowing costs excludes only borrowings that specifically
finance qualifying assets that are still under development or construction. Borrowings that were intended to specifically finance qualifying assets that
are now ready for their intended use or sale – or any non-qualifying assets – are included in that general pool. The standard is effective for annual periods
beginning on or after 1 January 2019. This amendment has no effect on Group’s consolidated financial statements.
b - Standards Issued But Not Yet Effective and Not Early Adopted as of 31 December 2019
Amendments to TFRS 4: Applying TFRS 9 Financial Instruments with TFRS 4 Insurance Contracts
TFRS 4 has been amended by POA, to reduce the impact of the differing effective dates of the new insurance contracts standard and TFRS 9. These
amendments to TFRS 4 provide two optional solutions for insurers to reduce concerns about implementations: i) when applying TFRS 9 by insurers to
its financial assets, an insurer will be permitted to reclassify the difference between profit or loss and other comprehensive income and the amounts
recognised in profit or loss under TFRS 9 and those that would have been reported under TAS 39; or ii) an optional temporary exemption from applying
TFRS 9 for companies whose activities are predominantly connected with insurance before January 1, 2021. These companies will be permitted to
continue to apply existing requirements for financial instruments in TAS 39.
The Group does not expect that application of this amendment will have significant impact on its consolidated financial statements.
TFRS 17 – Insurance Contracts
On 16 February 2019, POA issued TFRS 17 Insurance Contracts. This first truly globally accepted standard for insurance contracts will help investors
and others better understand insurers’ risk exposure, profitability and financial position. TFRS 17 replaces TFRS 4, which was brought in as an interim
Standard in 2004. TFRS 4 has given companies dispensation to carry on accounting for insurance contracts using national accounting standards,
resulting in a multitude of different approaches. As a consequence, it is difficult for investors to compare and contrast the financial performance of
otherwise similar companies. TFRS 17 solves the comparison problems created by TFRS 4 by requiring all insurance contracts to be accounted for in a
consistent manner, benefiting both investors and insurance companies. Insurance obligations will be accounted for using current values – instead of
historical cost. The information will be updated regularly, providing more useful information to users of financial statements. TFRS 17 has an effective
date of 1 January 2021 but companies can apply it earlier.
The Group does not expect that application of TFRS 17 will have significant impact on its consolidated financial statements.
Definition of Material (Amendments to TAS 1 and TAS 8)
On 07 June 2019, The amendments clarify the definition of material and how it should be applied by including in the definition guidance that until now
has featured elsewhere in TFRS Standards. In addition, the explanations accompanying the definition have been improved. Finally, the amendments
ensure that the definition of material is consistent across all TFRS Standards. This amendments have an effective date of 1 January 2020 but companies
can apply it earlier.
The Revised Conceptual Framework
The revised Conceptual Framework issued on 11 May 2019 by POA. The Conceptual Framework sets out the fundamental concepts for financial
reporting that guide the Board in developing TFRS Standards. It helps to ensure that the Standards are conceptually consistent and that similar
transactions are treated the same way, so as to provide useful information for investors, lenders and other creditors. The Conceptual Framework also
assists companies in developing accounting policies when no TFRS Standard applies to a particular transaction, and more broadly, helps stakeholders to
understand and interpret the Standards.


2.4 New and Revised Turkish Accounting Standards (continued)
The Revised Conceptual Framework (continued)
The revised Framework is more comprehensive than the old one – its aim is to provide the Board with the full set of tools for standard setting. It covers all
aspects of standard setting from the objective of financial reporting, to presentation and disclosures. For companies that use the Conceptual Framework
to develop accounting policies when no TFRS Standard applies to a particular transaction, the revised Conceptual Framework is effective for annual
reporting periods beginning on or after 1 January 2020, with earlier application permitted.
Amendments to TFRS 3 - Definition of a Business
Determining whether a transaction results in an asset or a business acquisition has long been a challenging but important area of judgement. The IASB
has issued amendments to IFRS 3 Business Combinations to make it easier for companies to decide whether activities and assets they acquire are a
business or merely a group of assets. In May 2019, POA has also published the Definition of Business (Amendments to TFRS 3). With this amendments
confirmed that a business shall include inputs and a process, and clarified that the process must be substantive and the inputs and process must
together significantly contribute to creating outputs.. It narrowed the definitions of a business by focusing the definition of outputs on goods and
services provided to customers and other income from ordinary activities, rather than on providing dividends or other economic benefits directly to
investors or lowering costs and added a concentration test that makes it easier to conclude that a company has acquired a group of assets, rather than
a business, if the value of the assets acquired is substantially all concentrated in a single asset or group of similar assets. This is a simplified assessment
that results in an asset acquisition if substantially all of the fair value of the gross assets is concentrated in a single identifiable asset or a group of
similar identifiable assets. If a preparer chooses not to apply the concentration test, or the test is failed, then the assessment focuses on the existence
of a substantive process. The amendment applies to businesses acquired in annual reporting periods beginning on or after 1 January 2020. Earlier
application is permitted.
The Group is assessing the potential impact on its consolidated financial statements resulting from the application of the amendments to TFRS 3.
Interest Rate Benchmark Reform (Amendments to TFRS 9, TAS 39 and TFRS 7)
Interest Rate Benchmark Reform, which amended TFRS 9, TAS 39 and TFRS 7 issued in September 2019, added Section 6.8 and amended paragraph
7.2.26. About this issue, IASB identified two groups of accounting issues that could affect financial reporting. These are: pre-replacement issues-issues
affecting financial reporting in the period before the reform; and replacement issues—issues that might affect financial reporting when an existing
interest rate benchmark is either reformed or replaced.
IASB considered the pre-replacement issues to be more urgent and decided to address the following hedge accounting requirements as a priority in the
first phase of the project:
• The highly probable requirement,
• Prospective assessments,
• Retrospective assessments,
All other hedge accounting requirements remain unchanged. A company shall apply the exceptions to all hedging relationships directly affected by
interest rate benchmark reform.
The Group shall apply these amendments for annual periods beginning on or after 1 January 2020 with earlier application permitted.


2.5 Summary of Significant Accounting Policies
Related Parties
A related party is a person or entity that is related to the entity that is preparing its financial statements (referred to as the “reporting entity”).
(a) A person or a close member of that person’s family is related to a reporting entity if that person:
(i) has control or joint control over the reporting entity;
(ii) has significant influence over the reporting entity;
(iii) is a member of the key management personnel of the reporting entity or of a parent of the reporting entity.
(b) An entity is related to a reporting entity if any of the following conditions applies:
(i) The entity and the reporting entity are members of the same group (which means that each parent, subsidiary and fellow subsidiary is
related to the others).
(ii) One entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of a group of which the other
entity is a member).
(iii) Both entities are joint ventures of the same third party.
(iv) One entity is a joint venture of a third entity and the other entity is an associate of the third entity.
(v) The entity is a post-employment defined benefit plan for the benefit of employees of either the reporting entity or an entity related to the
reporting entity. If the reporting entity is itself such a plan, the sponsoring employers are also related to the reporting entity.
(vi) The entity is controlled or jointly controlled by a person identified in (a).
(vii) A person identified in (a) (i) has significant influence over the entity or is a member of the key management personnel of the entity (or of a
parent of the entity).
Transaction with related party is a transfer of resources, services or liabilities between the reporting entity and the related party, disregarding it is
with or without a value.
Revenue
TFRS 15 establishes a comprehensive framework for determining whether, how much and when revenue is recognised.
It replaces existing revenue recognition guidance, including TAS 18 Revenue, TAS 11 Construction Contracts and TFRYK 13 Customer Loyalty
Programmes.
General model for revenue recognition
TFRS 15 requires revenue recognition for all contracts with customers to follow the five-step approach to revenue recognition.
Step 1: Identifying the contract with customers
A contract exists only if it is legally enforceable, the collection of the consideration is probable, the rights to goods and services and payment
terms can be identified, the contract has commercial substance; and the contract is approved and the parties are committed to their obligations.
If either contracts were negotiated as a single commercial package, or consideration in one contract depends on the other contract or goods or
services (or some of the goods or services) are a single performance obligation the Group accounts the contracts as a single contract.
Step 2: Identifying the performance obligations
Group defines “performance obligation” as a unit of account for revenue recognition. The Group assesses the goods or services promised in
a contract with a customer and identifies as a performance obligation either a good or service that is distinct; or a series of distinct goods or
services that are substantially the same and have the same pattern of transfer to the customer.
A contract may contain promises to deliver a series of distinct goods or services that are substantially the same. At contract inception, an entity
determines whether the series of goods or services is a single performance obligation.
Step 3: Determining the transaction price
In order to determine the transaction price, the Group assesses how much consideration it expects to be entitled to by fulfilling the contract. In
arriving at the assessment, the Group considers variable elements of consideration, as well as the existence of a significant financing component.


2.5 Summary of Significant Accounting Policies (continued)
Revenue (continued)
Significant financing component
The Group revises the promised amount of consideration for the effect of a significant financing component to the amount that reflects what the
cash selling price of the promised good or service.
As a practical expedient, the Group does not adjust the transaction price for the effects of a significant financing component if, at contract
inception, the entity expects the period between customer payment and the transfer of goods or services to be one year or less. In cases where
advance for the services are received and the payment scheme is broadly aligned with the Group’s performance throughout the period, the
Group concludes that the period between performance and payment is never more than 12 months, therefore the expedient is applied.
Variable consideration
The Group identifies items such as price concessions, incentives, performance bonuses, completion bonuses, price adjustment clauses,
penalties, discounts, credits, or similar items may result in variable consideration if there is any in a customer contract.
Step 4: Allocating the transaction price to performance obligations
If distinct goods or services are delivered under a single arrangement, then the consideration is allocated based on relative stand-alone selling
prices of the distinct goods or services (performance obligations). If directly observable stand-alone selling prices are not available, the total
consideration in the service contracts is allocated based on their expected cost plus a margin.
Step 5: Revenue Recognition
The Group recognises revenue over-time if any of the following conditions is met:
• customer simultaneously receives and consumes the benefits as the entity performs, or
• the customer controls the asset as the entity creates or enhances it, or
• Group’s performance does not create an asset for which the entity has an use; and alternative there is a right to payment for performance to
date.
For each performance obligation that is satisfied over time, an entity selects a single measure of progress, which depicts the transfer of control of
the goods or services to the customer. The Group uses a method that measures the work performed reliably.
The Group uses cost incurred to measure the progress towards to completion of the project where the input method is used and uses units
transferred to measure the progress towards to completion of the project where the output method is used.
If a performance obligation is not satisfied over time, then the Group recognise revenue at the point in time at which it transfers control of the
good or service to the customer.
The Group recognises a provision in accordance with TAS 37 “Provisions, Contingent Liabilities and Contingent Assets” when the unavoidable
costs of meeting the obligations under a contract exceed the economic benefits.
Contract modifications
The Group recognises a contract modification as a separate contract if the modification results in a promise to deliver additional goods or services
that are distinct and an increase in the price of the contract by an amount of consideration that reflects the entity’s stand-alone selling price of
those goods or services adjusted to reflect the circumstances of the contract.
If the goods or services are distinct, then the entity accounts for the modification as if it were a termination of the existing contract and the
creation of a new contract.
If the modification to the contract does not add distinct goods or services, then the entity accounts for it on a combined basis with the original
contract, as if the additional goods or services were part of the initial contract.
Dividend and interest income
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.


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 profit or 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.
Property, Plant and Equipment
Land 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 increase in the fair value arising on the revaluation of such land is recognized in gain on revaluation of property.
A decrease in the carrying amount arising on the revaluation of such land is recognized in profit or loss to the extent that it exceeds the balance in
the accumulated in the equity, if any, held in the properties revaluation reserve relating to a previous revaluation of that asset.
On the subsequent sale or retirement of a revalued property, the attributable revaluation surplus remaining in the properties revaluation reserve
inequity is transferred directly to retained earnings.
Land is not depreciated. Property, plant and equipment 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 property, plant, and equipment 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 as to write off the cost 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 Property, Plant and Equipment 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 recognized in the expense accounts in the consolidated profit and loss when they are realized.


Property, Plant and Equipment (continued)
The useful lives of Property, Plant and Equipment are as follows:
Useful life
Buildings 5-50 years
Land improvements 7-25 years
Machinery and equipment 2-35 years
Motor vehicles 3-18 years
Furniture and fixtures 2-50 years
Leasehold improvements 2-11 years
Other tangible assets 2-20 years
Intangible Assets
Intangible assets acquired
Intangible assets acquired are recognized 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 methods 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 licenses are shown at historical cost. 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 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 – Research and Development
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.


Intangible Assets (continued)
Internally generated intangible assets – R&D expenditure (continued)
The useful lives of the intangible assets are as follows:
Useful life
Rights 1-15 years
Computer software 2-3 years
Development expenditures 1-5 years
Impairment of Assets
Non-derivative Financial Assets
For financial assets that are not recognized in profit or loss, including shares in investments accounted for by equity method, it is assessed if there
is objective evidence of impairment at each reporting period.
Objective evidence of impairment in financial assets includes the sentences below.
• failure to fulfill the commitment or obligation by debtor;
• depending on the circumstances that the Group may not take into consideration;
• the possibility of bankruptcy of the debtor or the issuer;
• arise of a negative status in debtor or issuer’s payment status;
• elemination of a marketable asset from the active market or
• observable information indicating a measurable decrease in expected cash flows from a group of financial assets.
The fact that the fair value of an investment based on stocks falls permanently below the cost price for an important period or for a long period of
time is also an objective evidence of impairment. The Group considers a 20 percent decline to be significant and a 12-month period as long-term
and permanent.
Available-for-sale financial assets
Impairment losses on available for sale financial assets are recognized by reclassfying the losses accumulated in the gain on revaluation of
available for sale financial assets reserve to profit or loss. The amount reclassified is the difference between the acquisition cost (net of any
principal repayment and amortization) and the current fair value, less any impairment loss previously recognized in profit or loss.
If the fair value of an impaired available for sale debt security subsequently increases and the increase can be related objectively to an event
occuring after the impairment loss was recognized, then the impairment loss is reversed through profit or loss. Impairment loss is recognized in
profit or loss for an investment in an equity instrument classified as available for sale are not reversed through profit or loss.
If there is an increase in the fair value of a debt instrument classified as impaired or available for sale and if that increase is recognized as reliably
correlated to an event occurred after the impairment loss is recognized, withdrawal of impairment loss is accounted for in profit or loss, otherwise
in comprehensive income. Impairment losses recognized in profit or loss by associating with investments in equity instruments classified as
available-for-sale cannot be witdrawn through profit or loss.
Equity Accounted Investees
An impairment loss in respect of an equity accounted investee is measured by comparing the recoverable amount of the investment with its
carrying amount. An impairment loss is recognized in profit or loss, and is reversed if there has been a favorable change in the estimates used to
determine the recovarable amount.
Borrowing Cost
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.


Non-derivative Financial Assets (continued)
Available-for-sale financial assets (continued)
Financial Instruments
TFRS 9 Financial Instruments sets out requirements for recognising and measuring financial assets, financial liabilities and some contracts to buy
or sell non-financial items. This standard replaces TAS 39 Financial Instruments: Recognition and Measurement.
i. Classification – Financial assets
TFRS 9 contains a new classification and measurement approach for financial assets that reflects the business model in which assets are managed
and their cash flow characteristics.
TFRS 9 contains three principal classification categories for financial assets: measured at amortised cost, Fair Value Through Other
Comprehensive Income (“FVOCI”) and Fair Value Through Profit or Loss (“FVTPL”). The standard eliminates the existing TAS 39 categories of held
to maturity, loans and receivables and available for sale. Financial investments classified as “Available for Sale Financial Assets” in accordance with
TAS 39 are classified as FVOCI in accordance with TFRS 9.
Under TFRS 9, derivatives embedded in contracts where the host is a financial asset in the scope of the standard are never bifurcated. Instead, the
hybrid financial instrument as a whole is assessed for classification. The Group does not have any embedded derivatives as of reporting date.
ii. Impairment – Financial assets and contract assets
TFRS 9 replaces the “incurred loss” model in TAS 39 with a forward-looking “expected credit loss” (ECL) model. This requires considerable
judgement about how changes in economic factors affect ECLs, which is determined on a probability-weighted basis.
The new impairment model applies to financial assets measured at amortised cost or FVOCI, except for investments in equity instruments, and to
contract assets.
Under TFRS 9, loss allowances are measured on either of the following bases:
• 12-month ECLs: these are ECLs that result from possible default events within the 12 months after the reporting date; and
• lifetime ECLs: these are ECLs that result from all possible default events over the expected life of a financial instrument.
Lifetime ECL measurement (simplified approach) is always applied to trade receivables and contract assets without a significant financing
component.
iii. Classification – Financial liabilities
TFRS 9 largely retains the existing requirements in TAS 39 for the classification of financial liabilities.
However, under TAS 39 all fair value changes of liabilities designated as at FVTPL are recognised in profit or loss, whereas under TFRS 9 these fair
value changes are generally presented as follows:
The amount of change in the fair value that is attributable to changes in the credit risk of the liability is presented in OCI; and the remaining
amount of change in the fair value is presented in profit or loss.
The Group has not identified any liability for the fair value recognized in profit or loss and has no objective purpose.
iv. Hedge accounting
When initially applying TFRS 9, the Group may choose as its accounting policy to continue to apply the hedge accounting requirements of TAS
39 instead of the requirements in TFRS 9. During selection of the accounting policies, TFRS 9 gives option of continuing with TAS 39 hedge
accounting principles and deferring hedge accounting rules in accordance with TFRS 9. The Group does not apply hedge accounting.
Capital
Common Stocks
Common stocks are classified as equity. Incremental costs that can be directly attributable to the issue of ordinary shares are recognised as a
deduction from equity considering the tax effect.
Financial Lease Operations
Leasing- the group as lessor
Leases in terms of which the Group assumes substantially all the risks and rewards of ownership are classified as finance leases. All other leases are
classified as operating leases.


Financial Lease Operations (continued)
Leasing- the group as lessor (continued)
Finance lease receivables are recognized at the amount of the Group’s net investment in the leases. Finance lease income is recognized 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.
Payments made under operating leases are recognized in profit or loss on a straight-line basis over the term of the lease. Start-up costs for the
realization and optimisation of the operational lease agreement are added to the cost of the leased asset and amortized through the leased time
on a straight line basis method.
Foreign Currency Transactions
Foreign currency transactions and balances
The financial statements of each Group entity are presented in the currency of the primary economic environment in which the entity operates as
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 foreign currencies (other than TL) are recorded at the rates of
exchange prevailing on the dates of the transactions. At each balance sheet date, monetary items (including advances) 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.
Exchange differences are accounted for the period in profit or loss in which they are incurred except for the following cases:
• 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 statement of profit or loss, 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 Period
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 for 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 related with 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.


Operating Segments
Operations of the Company are technical system design, development, production and after-sales services for various products for defense
industry. One kind of operating segment has occurred in consequence of similarities between methods that are used for products, quality of
services and processes, client’s type and class, and distribution or presentation of products. It is not required to disclose segment reporting for
the consolidated subsidiaries, since revenue profit/loss and assets are below 10 percent of consolidated amounts.
Government Grants and Incentives
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.
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 statement of profit or loss
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 in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting
purposes and the amounts used for taxation purposes. Deferred tax liabilities are recognized for all taxable temporary differences and deferred
tax assets are recognized for deductible temporary differences to the extent that it is probable that future taxable profits will be available against
which they can be used. 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 future taxable profits will be available against which they can
be used.
Deferred tax (continued)
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
Tax, provided that it is not related with a transaction directly recognized in equity, is classified in the statement of profit or loss. Otherwise, tax is
recognized under equity.


Taxes Calculated on the Basis of the Company’s Earnings (continued) 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 to employees who have completed 20 years of service and earned the
right to retirement benefits. In
26 November 2015, according Board of Directors’ resolution numbered 869/6c, the Company has decided to terminate payment of retirement
bonus employees worked for 20 years for the Company and is qualified pensioner, beginning from 30 July 2016. 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 statement of cash flows is categorized and reported as operating, investing and financing.
Offsetting
Financial assets and financial liabilities are offset and the net amount presented in the statement of financial position when, and only when, the
Group currently has a legally enforceable right to offset the amounts and intends either to settle them on a net basis or to realize the asset and
settle the liability 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
Entity, disposal group as a single fixed asset.
2.6 Critical Accounting Judgments and Estimates
Critical judgments in applying the Group’s accounting policies
In the process of applying the 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 carry-forward period associated with the deferred tax assets; future reversals of existing taxable temporary
differences; tax-planning 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 provision is set for some portion of or all of the deferred tax assets (Note 27).
Liabilities with respect to employee benefits
The Group makes various assumptions on discount, inflation rate, wage increase rate, the probability of quitting voluntarily for calculating
provisions for employee benefits and retirement pays (Note 17).


2.6 Critical Accounting Judgments and Estimates (continued)
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 11-12).
Escalation
As of the reporting dates, the amounts of the projects subject to escalation are calculated with respect to the provisions of the contracts and
estimated in accordance with TFRS 15 “Revenue from Contracts with Customers”.
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 (Note 15).
Development Expenses
As of reporting 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 12).
3. CASH AND CASH EQUIVALENTS
Cash 261 153
Bank
- Time deposit 3.159.194 2.987.934
- Demand deposit 82.257 96.981
267.676 --
Other 4.015 2.320
Cash and cash equivalents on the cash flow statement 3.513.403 3.087.388
Interest income accruals 439 28.303
3.513.842 3.115.691
As of 31 December 2019, the Group has time deposits denominated in foreign currencies with maturities on January 2020 (31 December 2018: January
2019), with the interest rates between 0,2 percent and 2,5 percent (31 December 2018: 2 percent and 5 percent) amounting to TL 1.030.178 (31
December 2018: TL 253.662) in several banks.
As of 31 December, 2019, the Group has time deposits denominated in TL terms with maturities between January-February 2020 (31 December 2018:
January-February 2019) with the interest rates between 10,25 percent and 11 percent (31 December 2018: 18,5 percent and 23,5 percent) amounting
to TL 2.129.016 (31 December 2018: TL 2.734.272) in several banks.
As of 31 December, 2019 the Group has leasing certification denominated in TL terms with maturities 2020, March with 10 percent interest rates.

4. INTERESTS IN OTHER ENTITIES

a) Subsidiaries
Details of the Group’s material subsidiaries as of 31 December are as follow:
Group’s proportion of ownership and voting
power held (%)
Functional 31 December
Subsidiaries Location Currency 2019 31 December 2018 Main Activity
ASELSANNET Turkey TL 100 100 Communication systems
ASELSAN Baku Azerbaijan AZN 100 100 Marketing and sales of the group products
ASELSAN GLOBAL Turkey TL 100 -- Export
Mikro AR-GE Turkey TL 85 85 Microelectronic R&D projects

ASELSAN Malaysia Malaysia MYR 100 100 Remote controlled weapon systems
ASELSAN Konya Turkey TL 51 51 Weapon and weapon systems
Defense, Aerospace, Space Technologies,

BITES Turkey TL 51 -- Software
ULAK Turkey TL 51 -- Communication systems
Composition of the Group

Explained in Note 1.
Change in the Group’s ownership interest in a subsidiary:
Change in the Group’s subsidiaries ownership is explained in Note 2.1
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.
5. RELATED PARTY DISCLOSURES
Transactions between the Company and its subsidiaries which are related parties of the Company have been eliminated on consolidation,
therefore have not been disclosed in this note.
The trade receivables from related parties generally arise from sales activities with maturities of 1-2 years.
The trade payables to related parties generally arise from the purchase activities with maturities of 1-9 months.
Total amount of salaries and other short-term benefits paid for key management for the period ended 31 December 2019 is TL 21.333 (31 December
2018: TL 14.863).
Balance of the loan borrowed from Presidency of Defence Industries for the period ended 31 December 2019 is zero TL. (Note 30) (31 December
2018: TL 87.511).
The details of transactions between the Group and other related parties are disclosed in the following pages.

5. RELATED PARTY DISCLOSURES (continued)
Receivables
Short-term Long-term
Prepaid Other Prepaid
Balances with related parties Trading Expenses Receivables Trading Expenses
Main shareholder
TSKGV 29 -- -- -- --
Main shareholder’s subsidiaries and associates

Hava Elektronik Harp Sis. Müh. Tic. Anonim Şirketi
(“HAVELSAN EHSİM”) -- 774 -- -- --
Hava Elektronik San. ve Tic. Anonim Şirketi (“HAVELSAN”) 16.521 49.336 -- 605 676
HAVELSAN Teknoloji Radar San. ve Tic. Anonim Şirketi (“HTR”) 1.235 17.875 -- -- 22.861
İşbir Elektrik Sanayii Anonim Şirketi (“İŞBİR”) -- 20.781 -- -- 1.892
NETAŞ Telekomünikasyon Anonim Şirketi (“NETAŞ”) 207 18.246 -- -- 4.626
Savunma Teknolojileri Mühendislik ve Ticaret Anonim Şirketi
(“STM”) 64.763 4.408 -- 107.483 341
Türk Havacılık ve Uzay Sanayi ve Ticaret Anonim Şirketi
(“TUSAŞ”) 111.118 110 -- 118.031 --
Askeri Pil Sanayi ve Ticaret Anonim Şirketi (“ASPİLSAN”) -- 1.853 -- -- --
Roket Sanayi ve Ticaret Anonim Şirketi (“ROKETSAN”) 136.186 85.042 -- 108.367 251.901
Joint ventures and its related parties

ASELSAN Bİlkent Nano -- 6.503 -- -- 4.869
İhsan Doğramacı Bilkent Üniversitesi -- 566 -- -- --
ASELSAN Optik 2.548 62.575 1.150 -- 6.464
IGG 49.009 -- -- 5.019 --
IGG ASELSAN 6.694 1.561 -- -- --
ASELSAN Kazakhstan 75.858 -- -- 15.427 --
ASELSAN Jordan 85.924 -- -- 205 --
TÜBİTAK BİLGEM -- 3.133 -- -- 2.549
TÜBİTAK-UME -- 173 -- -- --
TÜBİTAK BİLİMSEL TEKNOLOJİK ARAŞTIRMA 2.416 1.022 -- 93.404 3.190
TÜBİTAK SAGE Savunma Sanayii -- 10.809 -- 6.003 --
TÜBİTAK UZAY TEKNOLOJİLERİ 470 -- -- -- --
Savunma Sanayi Başkanlığı (“SSB”) 563.585 -- -- 3.812.080 --
Ankaref Bilişim Teknolojileri Limited Şirketi (“ANKAREF”)
ULAK 878 -- -- -- --
SADEC LLC 662 -- -- -- --
1.118.103 284.767 1.150 4.266.624 299.369

31 December 2019
Payables
Trading Deferred Income Other Payables Trading Deferred Income
-- -- -- -- --
5.130 -- -- -- --
69.350 -- -- -- --
10.339 -- -- -- --
19.473 -- -- -- --
75.100 -- -- -- --
4.016 11.005 -- 1.965 19.819
33.203 20.162 -- 39.982 289.687
16.511 -- -- -- --
351.016 38.202 -- 13.313 63.811
13.307 -- -- -- --
6.693 -- -- -- --
14.343 -- -- -- --
-- -- -- -- --
319 -- -- -- --
538 4 -- -- --
54.099 1.654 -- -- --
4.755 -- -- -- --
3 -- -- -- --
1.136 2.797 -- 3.390 9.611
7.484 -- -- -- --
-- -- -- -- --
76.252 344.754 -- 1.367.161 879.670
30 -- -- -- --
89 -- -- -- --
763.186 418.578 -- 1.425.811 1.262.598

Receivables
Prepaid Other Prepaid
Balances with related parties Trading Expenses Receivables Trading Expenses
Main shareholder
TSKGV 21 -- -- -- --
Other shareholder
Axa Sigorta Anonim Şirketi (“Axa Sigorta”) -- -- -- -- --

Hava Elektronik Harp Sis. Müh. Tic. Anonim Şirketi
(“HAVELSAN EHSİM”) -- 943 -- -- --
Hava Elektronik San. ve Tic. Anonim Şirketi (“HAVELSAN”) 21.196 29.676 -- 957 7.365
HAVELSAN Teknoloji Radar San. ve Tic. Anonim Şirketi (“HTR”) -- 19.592 -- -- --
İşbir Elektrik Sanayii Anonim Şirketi (“İŞBİR”) -- 26.112 -- -- --
NETAŞ Telekomünikasyon Anonim Şirketi (“NETAŞ”) 22 35.564 -- -- 4.806
Savunma Teknolojileri Mühendislik ve Ticaret Anonim Şirketi
(“STM”) 53.509 10.808 -- 374 --
Türk Havacılık ve Uzay Sanayi ve Ticaret Anonim Şirketi
(“TUSAŞ”) 78.034 92 -- 61.748 --
Askeri Pil Sanayi ve Ticaret Anonim Şirketi (“ASPİLSAN”) 1.117 601 -- -- --
Roket Sanayi ve Ticaret Anonim Şirketi (“ROKETSAN”) 75.824 116.171 -- 54.483 127.687

ASELSAN Bİlkent Nano -- 4.809 -- -- 3.939
İhsan Doğramacı Bilkent Üniversitesi -- 7.533 -- -- --
ASELSAN Optik 2.726 34.985 -- -- --
IGG 37.245 -- -- 8.552 --
IGG ASELSAN 1.934 1.534 -- -- --
ASELSAN Kazakhstan 68.080 -- -- 13.905 --
ASELSAN Jordan 12.060 -- -- -- --
TÜBİTAK BİLGEM -- 5.965 -- -- 139
TÜBİTAK-UME -- 623 -- -- --
TÜBİTAK BİLİMSEL TEKNOLOJİK ARAŞTIRMA 15.664 506 -- 79.122 --
TÜBİTAK SAGE Savunma Sanayii 28 16.064 -- 5.245 11.997
TÜBİTAK UZAY TEKNOLOJİLERİ -- -- -- -- --
Savunma Sanayi Başkanlığı (“SSB”) 360.249 90 -- 1.752.153 --
Ankaref Bilişim Teknolojileri Limited Şirketi (“ANKAREF”) -- -- 24 -- --
ULAK 44.556 -- -- -- --
SADEC LLC 586 -- -- -- --
772.851 311.668 24 1.976.539 155.933

31 December 2018
Payables
Trading Deferred Income Other Payables Trading Deferred Income
-- -- -- -- --
-- -- 60 -- --
5.769 -- -- -- --
55.460 -- -- 4.040 --
4.415 -- -- -- --
14.524 -- -- -- --
37.086 -- -- -- --
25.257 70.957 -- 208.410 20.270
51.732 114.454 -- 16.127 242.424
6.027 -- -- -- --
50.722 118.359 -- 23.632 20.690
2.595 -- -- -- --
3.499 -- -- -- --
14.056 -- -- -- --
-- -- -- -- --
-- -- -- -- --
89 1.785 -- -- --
2.404 -- -- -- --
10.259 -- -- -- --
13 -- -- -- --
11.015 9.029 -- -- --
56.256 -- -- -- 660
722 -- -- -- --
241.789 196.167 -- 1.365.760 1.382.961
-- -- -- -- --
-- -- -- -- 2.155
222 -- -- -- --
593.911 510.751 60 1.617.969 1.669.160


2019 2018
Transactions with related parties Purchases Purchases
Main Shareholder
TSKGV 928 766
NETAŞ 133.535 132.739
STM 19.331 9.428
İŞBİR 57.029 47.964
HTR - HAVELSAN 63.854 36.305
MERCEDES-BENZ TÜRK ANONİM ŞİRKETİ (“MERCEDES”) -- 4
TUSAŞ 1.657 2.548
HAVELSAN 45.697 70.976
HAVELSAN EHSİM 1.520 5.568
ROKETSAN 328.570 34.748
ASPİLSAN 40.202 24.412
İHSAN DOĞRAMACI BİLKENT ÜNİVERSİTESİ 16.301 14.146
TÜBİTAK BİLGEM 27.395 28.585
TÜBİTAK BİLİMSEL TEKNOLOJİK ARAŞTIRMA 1.674 --
TÜBİTAK-UME 892 200
TÜBİTAK SAGE SAVUNMA SANAYİİ 35.126 67.144
TUBİTAK UZAY TEKNOLOJİLERİ -- 612
SSB 514 --
ULAK -- 3.463
SSTEK 25 --
774.250 479.608


2019 2018
Transactions with related parties Sales Sales
Main Shareholder
TSKGV 290 293
TUSAŞ 384.259 313.638
STM 738.160 528.564
HAVELSAN 9.792 8.742
HTR 21.137 1.679
HAVELSAN EHSİM -- 121
NETAŞ 1.380 207
ROKETSAN 194.459 132.613
ASPİLSAN -- 1.460
İHSAN DOĞRAMACI BİLKENT ÜNİVERSİTESİ 521 --
IGG -- 5.505
TÜBİTAK BİLGEM 546 --
TÜBİTAK BİLİMSEL TEKNOLOJİK ARAŞTIRMA 1.483 113.347
TÜBİTAK SAGE SAVUNMA SANAYİİ 506 41
TÜBİTAK UZAY TEKNOLOJİLERİ 220 41
SSB 5.733.028 5.168.321
ULAK -- 81.302
SSTEK 39.442 --
7.125.223 6.355.874
Transactions with related parties are generally related to the purchases and sales of goods and services related to projects under TFRS 15
“Revenue from Contracts with Customers”.

6. TRADE RECEIVABLES AND PAYABLES

a) Trade receivables
Details of the Group’s trade receivables are as follows:
Short-term trade receivables 2019 2018
Trade receivables 2.722.650 2.291.660
Trade receivables from related parties (Note 5) 1.118.103 772.851
Notes receivable 44.180 7.602
Doubtful trade receivables 58.960 2.218
Allowance for doubtful trade receivables (-) (58.960) (2.218)
3.884.933 3.072.113
Long-term trade receivables 2019 2018
Unbilled receivables from contracts with customers 1.057.620 756.215
Trade receivables 260.655 94.185
Unbilled receivables from contracts with customers -Related party (Note 5) 4.260.764 1.976.302
Trade receivables from related parties (Note 5) 5.860 237
5.584.899 2.826.939
The movement for the Group’s allowance for doubtful receivables is as follows:
2019 2018
Opening balance 2.218 21.457
Provision for the period 56.743 --
Provisions no longer required (1) (19.239)
Closing balance 58.960 2.218
The sectorial distribution of trade receivables is as follows:

2019 2018
Public sector 4.990.685 2.813.246
Private sector 2.528.297 1.935.259
Receivables from companies operating abroad 1.950.850 1.150.547
Total receivables 9.469.832 5.899.052
Receivables from public sector represent the receivables are due from the Presidency of Defense Industry and other public entities. The Group’s
operations are based on contracts and no other collaterals are obtained from the customers.
b) Trade payables
Details of The Group’s trade payables are as follows:
Short-term trade payables 2019 2018
Trade payables 2.220.802 1.624.670
Unearned revenue related to contracts with customers 373.895 325.838
Due to related parties (Note 5) 113.448 320.051
Unearned revenue related to contracts with customers -Related party (Note 5) 649.738 273.860
Notes Payable 246.029 --
Other trade payables 3.944 4.164
3.607.856 2.548.583
Long-term trade payables 2019 2018
Unearned revenue related to contracts with customers 413.598 150.294
Unearned revenue related to construction contracts in progress- Related
party (Note 5) 1.425.811 1.617.969
Other trade payables 20.896 20
1.860.305 1.768.283

7. OTHER RECEIVABLES AND PAYABLES

a) Other receivables
Short-term other receivables 2019 2018
Receivables from tax office1 356.238 187.893
Deposits and guarantees given 1.903 1.391
Other receivables from related parties (Note 5) 1.150 24
Other2 21.263 14.809
380.554 204.117
1
Mainly comprises Value Added Tax (VAT) returns and are expected to be offseted in the following periods.
2
Consists of R&D Center social security premium incentive and R&D Center income tax exceptions.
Long-term other receivables 2019 2018
Deposits and guarantees given 1.064 764
b) Other payables
Short-term other payables 2019 2018
Short-term other payables 56.986 2.347
Deposits and guarantees received 380 325
Financial leasing 1.134 --
Short-term other payables to related parties (Note 5) -- 60
58.500 2.732
Long-term other payables 2019 2018
Deposits and guarantees received 1.093 106
Financial leasing 3.836 --
4.929 106
8. EQUITY ACCOUNTED INVESTMENTS

The Group’s financial information for its shareholdings consolidated with equity method, that are not presented,according to the Group’s
ownership rates are as below:
Ownership Rate Current Non-current Total Short-term Long-term
31 December 2019 (%) Assets Assets Assets Liabilities Liabilities Total Liabilities
ASELSAN Kazakhstan 49 102.720 121.328 224.048 119.149 11.809 130.958
ASELSAN Jordan 49 94.927 22.335 117.262 82.531 -- 82.531
ASELSAN Optik 50 93.400 61.703 155.103 57.863 68.880 126.743
IGG ASELSAN 49 5.202 806 6.008 -- 880 880
ASELSAN Bilkent 50 48.554 141.191 189.745 39.661 120.423 160.084
SADEC LLC 50 4.927 1.073 6.000 1.472 443 1.915
TEKNOHAB 30 7.456 283 7.739 51 -- 51
EHSİM 50 82.258 3.023 85.281 10.800 60.553 71.353
TÜYAR 51 15.644 525 16.169 132 3 135
455.088 352.267 807.355 311.659 262.991 574.650
Ownership Rate Net Profit/ Group Share Group Share of
31 December 2019 (%) Revenue Expenses (Loss) of Net Assets Profit/(Loss)
ASELSAN Kazakhstan 49 83.928 (86.879) (2.951) 45.613 (1.447)
ASELSAN Jordan 49 83.132 (82.069) 1.063 17.018 521
ASELSAN Optik 50 130.643 (120.604) 10.039 14.180 5.019
IGG ASELSAN 49 8.760 (7.393) 1.367 8.803 670
ASELSAN Bilkent 50 39.363 (28.462) 10.901 14.831 5.455
SADEC LLC 50 2.136 (10.389) (8.253) 2.043 (4.128)
BARQ QSTP LLC. 48 -- -- -- 834 --
TEKNOHAB 30 346 (2.658) (2.312) 2.306 (694)
EHSİM 50 15.483 (20.535) (5.052) 6.964 (2.527)
TR Eğitim ve Teknolojileri 50 -- -- -- 1.000 --
TÜYAR 51 1.865 (2.931) (1.066) 8.177 (544)
365.656 (361.920) 3.736 121.769 2.325

8. EQUITY ACCOUNTED INVESTMENTS (continued)

Ownership Current Non-current Total Short-term Long-term
31 December 2018 Rate (%) Assets Assets Assets Liabilities Liabilities Total Liabilities
ASELSAN Kazakhstan 49 91.850 113.145 204.995 107.365 10.484 117.849
ASELSAN Jordan 49 22.138 19.578 41.716 12.296 -- 12.296
ASELSAN Optik 50 58.498 52.676 111.174 63.511 27.042 90.553
IGG ASELSAN 49 19.488 1.483 20.971 4.016 2.169 6.185
ASELSAN Bilkent 50 21.039 109.978 131.017 18.427 93.829 112.256
SADEC LLC 50 9.899 3.270 13.169 1.354 -- 1.354
TÜYAR 51 2.987 1.072 4.059 58 -- 58
225.899 301.202 527.101 207.027 133.524 340.551
Ownership Net Profit/ Group Share Group Share of

31 December 2018 Rate (%) Revenue Expenses (Loss) of Net Assets Profit/(Loss)
ASELSAN Kazakhstan 49 61.722 (73.504) (11.782) 42.702 (5.773)
ASELSAN Jordan 49 5.958 (11.454) (5.496) 14.417 (2.693)
ASELSAN Optik 50 58.221 (50.917) 7.304 10.310 3.652
IGG ASELSAN 49 12.376 (11.401) 975 7.245 478
ASELSAN Bilkent 50 17.347 (15.512) 1.835 9.380 917
SADEC LLC 50 2.431 (13.184) (10.753) 5.907 (5.376)
BARQ QSTP LLC. 48 -- -- -- 834 --
TEKNOHAB 30 -- -- -- 750 --
TÜYAR 51 706 (1.012) (306) 2.041 (156)
158.761 (176.984) (18.223) 93.586 (8.951)
9. INVENTORIES
2019 2018
Raw materials 2.268.578 1.948.791
Work in progress 1.728.108 1.172.216
Goods in transit 3 178.206 196.567
Finished goods 234.811 174.341
Other inventories 28.654 19.561
Trade goods 51.398 73.262
Allowance for impairment on inventories (-) (15.828) (8.120)
4.473.927 3.576.618
3
Goods in transit includes the goods for which significant risks and rewards of ownership has been transferred to the Group due to their shipping terms.
The Group provides an allowance for impairment on inventories when the inventories net realizable values are lower than their costs or when
they are determined as slow-moving inventories.
The Group has identified raw material, work-in progress and finished goods inventories below net realizable value within the current year.
Impaired inventory movements for the period ended in 31 December are as follows:
2019 2018
Provision for the period 8.347 11.908
Provision released (639) (29.449)

10. PREPAID EXPENSES AND DEFERRED INCOME

Short-term prepaid expenses 2019 2018
Order advances given for inventory purchases 930.628 889.631
Short-term order advances given to related parties for inventory purchases (Note 5) 284.767 311.668
Prepaid expenses 104.871 118.031
1.320.266 1.319.330
Long-term prepaid expenses 2019 2018
Long-term order advances given to related
parties for inventory purchases (Note 5) 299.369 155.933
Order advances given for inventory purchases 172.382 279.727
Order advances given for fixed assets purchases 92.447 60.621
Prepaid expenses 20.455 8.118
584.653 504.399
Short-term deferred income 2019 2018
Order advances received 131.022 92.303
Order advances received from related parties
418.578 510.751
(Note 5)
Deffered income 30.789 29.591
580.389 632.645
Short-term order advances received comprises advances received from 69 customers (31 December 2018: 61 customers) of which first 10 customers
constitutes 99 percent of the total (31 December 2018: 99 percent).
Long-term deferred income 2019 2018
Order advances received 575.385 627.349
Order advances received from related parties (Note 5) 1.262.598 1.669.160
Deferred income 4 4
1.837.987 2.296.513
Long-term order advances received comprises advances received from 62 customers (31 December 2018: 39 customers) of which the first 10
customers constitutes 98 percent of the total (31 December 2018: 98 percent).

11. PROPERTY, PLANT AND EQUIPMENT

Land Machinery and
Land improvements Buildings equipment Vehicles
Cost and revaluation
Opening balance as of 1 January 2019 302.045 35.554 204.961 1.002.686 5.492
Additions6 17.634 1.346 19.923 152.825 1.668
Revaluation fund -- -- -- -- --
Disposals -- -- -- (540) (102)
Closing balance as of 31 December 2019 319.679 36.900 224.884 1.154.971 7.058
Accumulated depreciation
Opening balance as of 1 January 2019 -- 11.744 80.704 549.024 2.568
Charge for the period -- 2.132 10.141 84.624 669
Disposals -- -- -- (540) (65)
Closing balance as of 31 December 2019 -- 13.876 90.845 633.108 3.172
Net book value as of 31 December 2019 319.679 23.024 134.039 521.863 3.886
Land Machinery and

Land improvements Buildings equipment Vehicles
Cost and revaluation
Opening balance as of 1 January 2018 249.265 18.229 193.499 828.923 4.540
Additions 52.780 421 -- 170.755 1.272
Revaluation fund -- -- -- -- --
Disposals -- -- -- (449) (320)
Transfers -- 16.904 11.462 3.457 --
Closing balance as of 31 December 2018 302.045 35.554 204.961 1.002.686 5.492
Accumulated depreciation
Opening balance as of 1 January 2018 -- 9.946 73.466 481.111 2.175
Charge for the period -- 1.798 7.238 68.029 525
Disposals -- -- -- (116) (132)
Closing balance as of 31 December 2018 -- 11.744 80.704 549.024 2.568
Net book value as of 31 December 2018 302.045 23.810 124.257 453.662 2.924
4
Comprises the mould model devices manufactured by the Group with net book value of TL 45.686 (31 December 2018: TL 38.417).
5
Includes of investments in molds, models, devices and construction works.
6
TL 43.225 of additions are free of charge investment income (31 December 2018: TL 22.362).

Leasehold Construction
Furniture and fixtures Other fixed assets4 improvements Financial leasing in progress5 Total
238.723 105.946 202.083 -- 133.711 2.231.201

57.116 18.919 7.538 6.264 115.240 398.473
-- -- -- -- -- --
(48) -- -- -- (2.337) (3.027)
295.791 124.865 209.621 6.264 246.614 2.626.647
150.680 67.529 32.655 -- -- 894.904

39.361 11.650 8.359 1.481 -- 158.417
-- -- -- -- -- (605)
190.041 79.179 41.014 1.481 -- 1.052.716
105.750 45.686 168.607 4.783 246.614 1.573.931
Construction
Furniture and fixtures Other fixed assets Leasehold improvements in progress Total
190.169 91.638 197.842 93.063 1.867.168

48.529 22 488 91.636 365.903
-- -- -- -- --
(320) -- (194) (587) (1.870)
345 14.286 3.947 (50.401) --
238.723 105.946 202.083 133.711 2.231.201
127.149 57.442 25.036 -- 776.325

23.574 10.087 7.708 -- 118.959
(43) -- (89) -- (380)
150.680 67.529 32.655 -- 894.904
88.043 38.417 169.428 133.711 1.336.297

11. PROPERTY, PLANT AND EQUIPMENT (continued)

The details of the depreciation expenses with respect to the plant, property and equipment is as follows:
2019 2018
Cost of sales 111.957 79.986
General administrative expenses 29.689 25.578
Inventories 16.114 13.032
Marketing expenses 657 363
158.417 118.959
There is no tangible assets acquired through financial leasing as of 31 December 2019 and 2018.
There is no collateral, pledges, and mortgages on tangible assets as of 31 December 2019 and 2018.
There is no capitalized interest expense as of 31 December 2019 and 2018.
Fair value measurement of the Group’s land
The lands owned by the Group are revalued and presented at fair value as of 31 December 2019. The fair value of the lands owned by the Group
is revalued on 11 December 2017 by Metrik Gayrimenkul Değerleme Danışmanlık Anonim Şirketi (“Metrik Değerleme”), an independent
appraisal company. Metrik Değerleme is authorized by the CMB and provides real estate appraisal services in accordance with the capital market
legislation. The fair value of the lands is determined according to “Market Value Approach (Equivalent Comparison Method)”. Gains resulting
from revaluation are recognized under “Gain on Revaluation of Property” in other comprehensive income.
In accordance with TFRS 13 “Fair Value Measurement” standard, since measurement techniques do not include observable market inputs, fair
values of the lands are considered as level 3 in respect of fair value hierarchy.
There are no restrictions on the distribution of revaluation funds. The valuation difference on the lands is TL 230.391 (31 December 2018: TL
230.391).
Details of the Group’s lands and information regarding fair value hierarchy are as follows:
Fair value as of reporting date
31 December Level 1 Level 2 Level 3
2019 TL TL TL
Macunköy 173.421 -- -- 173.421
Akyurt 92.147 -- -- 92.147
Gölbaşı 1.110 -- -- 1.110
Oğulbey 52.780 52.780
Gölbek 166 -- -- 166
Denizli 55 -- -- 55
319.679 319.679
Fair value as of reporting date
31 December Level 1 Level 2 Level 3
2018 TL TL TL
Macunköy 173.421 -- -- 173.421
Akyurt 74.513 -- -- 74.513
Gölbaşı 1.110 -- -- 1.110
Oğulbey 52.780 -- -- 52.780
Gölbek 166 -- -- 166
Denizli 55 -- -- 55
302.045 302.045
The fair value level action table as of 31 December 2018 are as follows:
Fair Value Level as of Reporting Date
Level 1 Level 2 Level 3
TL TL TL
1 January 2019 -- -- 302.045
Additions -- -- 17.634
31 December 2019 -- -- 319.679

12. INTANGIBLE ASSETS

Other intangible
Rights Development Costs assets7 Total
Cost
Opening balance as of 1 January 2019 51.569 1.247.730 177.480 1.476.779
Additions 23.052 1.230.946 47.612 1.301.610
Disposals -- (997.163) -- (997.163)
Transfers 6.176 (6.176) -- --
Closing balance as of 31 December 2019 80.797 1.475.337 225.092 1.781.226
Accumulated Amortization
Opening balance as of 1 January 2019 32.783 231.611 130.318 394.712
Charge for the period 18.982 50.967 39.987 109.936
Closing balance as of 31 December 2019 51.765 282.578 170.305 504.648
Net book value as of 31 December 2019 29.032 1.192.759 54.787 1.276.578
7
Other intangible assets include licences related to computer software.
Other intangible
Rights Development Costs assets8 Total
Cost
Opening balance as of 1 January 2018 51.388 1.023.178 137.825 1.212.391
Additions 135 1.355.103 39.655 1.394.893
Disposals -- (1.130.505) -- (1.130.505)
Transfers 46 (46) -- --
Closing balance as of 31 December 2018 51.569 1.247.730 177.480 1.476.779
Accumulated Amortization
Opening balance as of 1 January 2018 27.733 193.918 99.524 321.175
Charge for the period 5.050 37.693 30.794 73.537
Closing balance as of 31 December 2018 32.783 231.611 130.318 394.712
Net book value as of 31 December 2018 18.786 1.016.119 47.162 1.082.067
8
Other intangible assets include licences related to computer software.
The details of amortization expenses regarding intangible assets is as follows:

2019 2018
Research and development expenses 49.831 37.338
Cost of sales 41.596 23.908
Inventories 11.023 8.073
Marketing expenses 356 301
General administrative expenses 7.130 3.917
109.936 73.537
13. GOVERNMENT GRANTS AND INCENTIVES

The deferred incentive income shown under consolidated statement of financial position is as follows:
2019 2018
Current government grants and incentives 43.194 53.818
As part of the Decision on Government Incentives on Investments, there are 6 investment incentives taken from General Directorate of Turkish
Undersecreteriat of the Treasury. The incentives allow VAT exemption and customs tax exemption. VAT exemption is applied in both domestic and
international purchases while customs tax exemption is applied for international purchases.
In Corporate Tax Calculation, no tax payable is calculated because of R&D deduction and deductions due to investment incentive certificates
cannot be applied. For this reason, no deferred tax effect is calculated for the temporary differences arising from investment incentives.
Government grants show 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 reporting date.

13. GOVERNMENT GRANTS AND INCENTIVES (continued)

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.
In accordance with Law on Technology Development Zones 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 research and development and software personnel payroll. Income generated
in accordance with law on Technology Development Zones numbered 4691 is exempt from corporate income tax until 31 December 2023.
The research and development expenditure deduction rate used as a tax benefit has been increased from 40 percent to 100 percent in
accordance with the amended article 10 of the Tax Law numbered 5520, the amended article 89 of Law numbered 193 and 5746 with respect
to the Support of Research and Development Activities. The aforementioned law was enacted of April 2008 after its issue in the Official Gazette
dated 12 March 2008, numbered 26814. In accordance to the Law regarding the Incentive of Research and Development Activities numbered
6676 published on Official Gazettes numbered 29636 on 26 February 2016 and The Law Regarding the Amendments on Delegated Legislation,
the content of the law and incentives has been broadened and additional exceptions has been given. Research and development 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 research and development tax deduction is allowed to be carried forward to the next tax period. The remaining amount
from previous year is increased according to revaluation ratio defined at Tax Procedure Law. According to the item No. 8 of the related law, all the
costs related with research and development can be subjected to deduction until 31 December 2023.
14. BORROWING COSTS
As of 31 December 2019, there is no borrowing cost regarding the qualifiying assets. (31 December 2018: None).
15. PROVISIONS, CONTINGENT ASSETS AND LIABILITIES
a) Provisions
Other short-term provisions 2019 2018
Provision for warranties9 731.395 442.777
Provision for onerous contracts 129.518 87.772
Provision for delay penalties10 100.508 41.403
Provision for legal cases 24.501 10.905
Provision for cost expenses 7.525 2.072
Other 1.113 640
994.560 585.569
9
The Group’s provision for warranty is based on sales under warranty are estimated in accordance with historical data. Provision for warranty is calculated by using warranty rate included in
the contract as long as the invoice issued throughout the life of the Contract
10
Provision for delay penalties and fines are calculated in accordance with interest rates mentioned in the agreement for defaulet and within the client’s knowledge.
The movement of the provision for warranties is as follows:

2019 2018
Realized during the period (160.172) (116.328)

15. PROVISIONS, CONTINGENT ASSETS AND LIABILITIES (continued)

a) Provisions (continued)
The movement of the provision for onerous contracts is as follows:
2019 2018
Reclass from short-term provisions to long-term provisions -- (54.140)
Provision reversed during the period -- (7.175)
The movement of the provision for delay penalties is as follows:

2019 2018
Provision reversed during the period (4.510) (4.928)
The movement of the provision for legal cases is as follows:

2019 2018
Other long-term provisions 2019 2018
Provision for delay penalties 381.830 328.385
381.830 328.385
The movement of the provision for onerous contacts is as follows:

2019 2018
Reclassification from short-term provisions to
long-term provisions -- 54.140
Provision during the period 53.445 238.861
Provision reversed during the period -- (7.541)

15. PROVISION, CONTINGENT ASSET AND LIABILITIES (continued)

b) Legal cases
There has not been any final judicial decision against the Group due to the violation of employee rights within 2019. There has not been any final
judicial decision against the Group due to the responsibility related with work accidents within 2019.
As of the dates 31 December, according to the declarations written by the legal counselors, the lawsuits and legal executions in favor of and
against the Group are as follows:
Description 2019 2018
a) Ongoing lawsuits filed by the Group 70.374 12.162
b) Execution proceedings carried out by the Group 193.568 119.415
c) Ongoing lawsuits filed against the Group 24.501 10.905
d) Executions against the Group 485 --
e) Lawsuits finalized against the Group within the period 1.505 150
f) Lawsuits finalized in favor of the Group within the period 1.975 413
a) Ongoing lawsuits filed by the Group are comprised of lawsuits for patents, trademarks and lawsuits filed by the Group due to the
disagreements related to previous lawsuits. These lawsuits will not be recognised in the financial statements until they are finalized.
b) Execution of proceedings carried out by the Group are comprised of lawsuits that would result in favor of the Group that will be recognised as
revenue under “Other Operating Income” line when they are collected.
c) The Company made provisions for all lawsuits filed against the Group and recognised as “Provisions” in the statement of financial positon and
“Other Operating Expense” in the statement of profit or loss and other comprehensive income.
d) Executions against the Group are not included in Financial Statements.
e) Lawsuits finalized against the Group are recognised in the statement of profit or loss to the extent that the amount differs from the amount
previously provided. Amounts in excess of the amount previously provided are recognised under “Other Operating Expense” when the penalty is
paid.
f) Lawsuits finalized in favor of the Group are recognised in statement of profit or loss and other comprehensive income under “Other Operating
Income” line when the final judgement is determined.

16. COMMITMENTS AND CONTINGENCIES

a) Operating lease
As of 31 December 2019, the Group has two lands that are rented for 49 years and 46 years. In 2019 the Group has paid rent amounting to TL
306 (31 December 2018: TL 229) and TL 542 (31 December 2018: TL 459) for property lands rented for 49 years and 46 years respectively. Rent
payments escelated every year based on the “Producer Price Index (PPI)” rate. The rental period will end on 23 January 2061.
As of 31 December 2019, the Group has paid rent amounting to TL 4.484 (31 December 2018: TL 3.425) for vehicles rented during the year.
b) Guarantees received
2019 2018
Letters of guarantees received from the suppliers 2.125.852 1.749.080
Collaterals received from the customers 19.952 18.084
Letters of guarantees received from the customers 6.450 4.901
Collaterals received from the suppliers 28.155 4.932
Letters of guarantees received from the suppliers 8.042 --
Mortgages received from the customers 265 265
2.188.716 1.777.262
c) Collaterals/Pledges/Mortgages (“CPM”) given

The collaterals/pledges/mortgages (“CPM”) given by the Group as of 31 December 2019 and 31 December 2018 is as follows:
In accordance with the terms of the Patrol and Anti-Submarine Warfare Ship Projects (“MİLGEM”), the Company is a guarantor if HAVELSAN cannot
be able to fulfill the obligations in this project of an amount of USD 288.493.

16. COMMITMENTS AND CONTINGENCIES (continued)

c) Guarantees given (continued)
31 December 2019 TL Equivalent TL USD
A. Total amount of CPM given on behalf of the legal entity
-Collateral 19.163.727 5.678.746 1.209.264
-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
-Pledge -- -- --
-Mortgage -- -- --
D. Total amount of other CPM given
i. Total Amount of CPM on behalf of the main partner
-Pledge -- -- --
-Mortgage -- -- --
ii. Total amount of CPM given on behalf of other group
companies that do not cover B and C 11
-Collateral 18.231 -- 3.069
-Pledge -- -- --
-Mortgage -- -- --
iii. Total amount of CPM on behalf of third parties that do
not cover
-Pledge -- -- --
-Mortgage -- -- --
Total 19.181.958 5.678.746 1.212.333
The Group is responsible as joint guarantor for the portion amounting to EURO 2,5 Million of investment credit amounting to EURO 5 Million
which will be used by ASELSAN Optik, the Group’s joint venture.
11
The ratio of the other CPM given by the Group to equity as of 31 December 2019 is 0,13 percent. TL 18.231 is the collateral amount pertaing to guarantee letter given on behalf of the
entity’s joint venture ASELSAN Bilkent.

EURO UAE Dirham Indian Rupee British Pound Qatar Rial
947.409 -- 10.000 -- 25
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
947.409 -- 10.000 -- 25

16. COMMITMENTS AND CONTINGENCIES (continued)

c) Guarantees given (continued)
31 December 2018 TL Equivalent TL USD

A. Total amount of CPM given on behalf of the legal entity
-Collateral 17.683.695 2.337.667 1.842.279
-Pledge -- -- --
-Mortgage -- -- --
B. Total amount of CPM given on behalf of the subsidiaries
included in full consolidation
-Pledge -- -- --
-Mortgage -- -- --
C. Total amount of CPM given to maintain operations and
collect payables from third parties
-Pledge -- -- --
-Mortgage -- -- --
D. Total amount of other CPM given
i. Total Amount of CPM on behalf of the main partner
-Pledge -- -- --
-Mortgage -- -- --
ii. Total amount of CPM given on behalf of other group
companies that do not cover B and C 12
-Collateral 22.590 495 4.200
-Pledge -- -- --
-Mortgage -- -- --
iii. Total amount of CPM on behalf of third parties that do
not cover
-Pledge -- -- --
-Mortgage -- -- --
Total 17.706.285 2.338.162 1.846.479
The Group is responsible as joint guarantor for the portion amounted EURO 2,5 Million of investment credit amounted EURO 5 Million which will
be used by ASELSAN Optik that is the Group’s joint venture.
12
The ratio of the other CPM given by the Group to equity as of 31 December 2018 is 0,22 percent. TL 22.590 is the collateral amount pertaing to guarantee letter given on behalf of the
entities’ affiliate company Mikro AR-GE and joint venture ASELSAN Bilkent.

EURO UAE Dirham Indian Rupee British Pound Qatar Rial
935.983 50 10.000 1.654 25

-- -- -- --
-- -- -- --
-- -- -- --
-- -- -- --
-- -- -- --
-- -- -- --
-- -- -- --
-- -- -- --
-- -- -- --
-- -- -- --
-- -- -- --
-- -- -- -- --
-- -- -- --
-- -- -- --
-- -- -- --
-- -- -- --
-- -- -- --
935.983 50 10.000 1.654 25

17. EMPLOYEE BENEFITS

a) Obligations for employee benefits
Social security premiums payable 37.643 24.869
Taxes and funds payable 39.259 7.472
Due to personnel 69.037 2.532
145.939 34.873
b) Short-term provisions for employee benefits

Provision for vacation pay and overtime 72.819 49.382
As of 31 December the movement of the provision for vacation pay and overtime is as follows:
2019 2018
Provision paid during the period (26.372) (14.584)
Provision realized during the period (3.962) (2.943)
c) Long-term provisions for employee benefits

Provision for severance pay 206.040 184.440
Provision for retirement pay 19.691 14.171
225.731 198.611
As of 31 December the movement of severance and retirement pays are as follows:

2019 2018
Service cost 21.193 11.254
Interest cost 6.100 4.795
Actuarial gains/(loss) 17.851 24.662
Payments (18.024) (10.842)
Provision for severance pay:

In accordance with the Labor Law Legislations, the Group is obliged to make legal severance indemnity payments to entitled employees whose
employment has been terminated. Furthermore, with regard to Social Security Law numbered 506 dated 6 March 1981, number 2422 dated 25
August 1999 and law numbered 4447, article 60 denotes the legal obligation to make severance payments to all employees who are entitled to
indemnity by the date of leave of employment.
Certain provisions regarding services before retirement, has been annulled on 23 May 2002 during the revision of the related law. As of 31
December 2019 severance payments are calculated on the basis of 30 days’ pay, limited to a ceiling of TL 6.3801 (31 December 2018: TL 5.434)1
As of 1 January 2020, the ceiling for the severance payments is TL 6.7301
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.
1
Amounts are shown in original Turkish Lira values.

17. EMPLOYEE BENEFITS (continued)

Provision for severance pay (continued)
Provision for retirement grant:
Retirement bonus provision is recognized for the employees with service of more than 20 years within the Group and has earned/will earn their
retirement.
Accordingly, the following actuarial assumptions were used in the calculation of the total liability:
(%) (%)
Interest rate 12,88 15,60
Inflation rate 8,90 11,80
Discount ratio 3,35 3,40
Estimation of probability of retirement ratio 97 97
18. OTHER ASSETS AND LIABILITIES

a) Other current assets
VAT carried forward13 219.828 177.210
Restricted cash14 49.949 74.269
Other VAT 70.185 53.873
Job advances 729 705
Other15 56.246 22.754
396.937 328.811
13
Taxpayers (Contractor/the Group) who deliver goods and provides services to the Natural Security Institutions (such as MOD and UDI) are to be approved by purchasers (contacting
authority) in terms of content and nature accordingly. Value Added Tax (VAT) is 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 usually are not collected, but they are offset with other tax liabilities.
14
The amount consists of the restricted cash with regard to 1007 and the European Union projects.
15
Mainly comprises of other assets and liabilities of consolidated subsidiaries.
b) Other non-current assets

VAT carried forward1 695.137 463.005
Prepaid taxes and funds 34.377 29.202
Other3 9.722 7.935
739.236 500.142
c) Other short-term liabilities

Taxes and funds payable 3.596 218
Other3 651 8.019
4.247 8.237
19. SHARE CAPITAL, RESERVES AND OTHER EQUITY ITEMS

Capital
Shareholders Share (%) 31 December 2019 Share (%) 31 December 2018
TSKGV 74,20 845.826 74,20 845.826
Publicly held 25,80 294.174 25,70 293.019
Axa Sigorta Anonim Şirketi16 -- -- 0,10 1.155
Nominal capital 100 1.140.000 100 1.140.000
Share capital adjustment 98.621 98.621
Inflation adjusted capital 1.238.621 1.238.621
16
As of 12 July 2019, the nominal amount of TL 1.155 held by Axa Sigorta A.Ş. converted to publicly traded share with respect to the announcement “Conversion to the Type Traded on the
Stock Exchange”.
The Group’s nominal capital is TL 1.140.000 comprising 1.140.000.000 shares each of which is TL 1. A total of 605.454.545 of the shares
constitutes “Group A” and 534.545.455 of the shares constitutes “Group B” shares. All of the shares are nominative. “Group A” shares are
privileged nominative shares and 6 Members 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, the Board of Directors shall be authorized in matters regarding issuing
preferred shares or issuing shares above the nominal values. Regarding capital increases by restricting preemptive rights, the shares to be issued
shall be “Group B”. In accordance with the CMB’s legislation, other Members of the Board of Directors, not including elected Independent
Members of the Board of Directors, are assigned from nominative “Group A” shareholders or elected from among candidate nominated by
“Group A” shareholders.

19. SHARE CAPITAL, RESERVES AND OTHER EQUITY ITEMS (continued)

Restricted reserves
In accordance with Capital Markets Board’s Communique Serial II No: 19.1 “Share of Profit”, effective as of 1 February 2014, and with regard to
the Turkish Commercial Code (“TCC”), legal reserves in publicly held companies will be generated by 5 percent of income until it reaches 20
percent of paid-in share capital. After the 5 percent of the dividend is paid to shareholders, 10 percent of the total distributed to shareholders and
employees can be added in the other legal reserve. Under the TCC, the legal reserves can be used only to offset losses for the going concern of
the company or to prevent unemployment as long as the amount does not exceed 50 percent of the paid-in capital.
As of 31 December 2019, The Group’s restricted reserves set aside from profit comprises legal reserves. The total of the Group’s legal reserves are
TL 276.827 (31 December 2018: TL 172.687).
Retained Earnings
Accumulated profits apart from net profit for the year and extraordinary reserves which is accumulated profit by nature are shown under retained
earnings. As of 31 December 2019 the extraordinary reserves balance presented in retained earnings is TL 2.987.028 (31 December 2018: TL
1.435.063). According to the statutory records, the Company’s profit for the period is TL 3.686.183 (31 December 2018: TL 1.829.121) and its
other funds available for profit distribution is TL 3.034.425 (31 December 2018: TL 1.481.866) and the details are as followings.
Profit distribution
Publicly traded companies perform dividend distribution in accordance with Capital Markets Board’s Communique Serial II No: 19.1 “Share of
Profit”, effective as of 1 February 2014.
Shareholders, distribute dividend with general assembly decision, within the context of profit distribution policies set by general assembly and
related regulations. As part of the communique, no specific minimum distribution ratio is indicated. Companies pay dividend as defined in their
articles of association or dividend distribution policies.
On 26 April 2019, in accordance with the consolidated financial statements, the General Assembly of the Company has decided to allocate
legal reserve amounting to TL 103.156 of the TL 2.318.198 which is based on the profit distribution, and to distribute TL 174.000 in cash to
shareholders for dividend payment and the remaining TL 2.041.042 to be within the Group. Thus, the cash gross dividend amount for TL 1
nominal value per share is Kuruş 15,26 net (31 December 2018: Kuruş 7,42 net).
Within 2019, dividend amounting to TL 174.000 in gross, 15,26 Kuruş per share of TL 1 (net profit amounting to TL 147.900, 12,97 Kuruş per
share of TL 1) will be paid to shareholders. (31 December 2018: TL 84.600 in gross, 7,42 Kuruş per share of TL 1 (TL 71.910 in net, 6,31 Kuruş per
share of TL 1) was paid).
On 1 March 2019, General Assembly of ASELSANNET has decided to distribute TL 10.000 as dividend payments to shareholders and reserve TL
984 as retained earnings from net profit of the year 2018. Remaining TL 12.497 is decided to be allocated as extraordinary reserves (31 December
2018: 5.000).
The dividend which amounted TL 174.000 has been allocated to shareholders.
20. REVENUE AND COST OF SALES
a) Revenue 2019 2018
Domestic sales 11.503.350 8.140.207
Export sales 1.573.783 888.955
Other revenues 20.746 7.033
Sales returns (-) (82.069) (24.179)
Sales discounts (-) (3.259) (3.315)
Other discounts (-) -- (185)
13.012.551 9.008.516
1 January - 1 January -
Revenue Recognized Regarding Performance Obligation 2019 2018
Over time 8.852.909 5.634.134
Point in time 4.159.642 3.374.382
13.012.551 9.008.516

20. REVENUE AND COST OF SALES (continued)

b) Cost of sales (-) 2019 2018
Cost of raw materials and supplies 7.475.716 5.202.636
Cost of merchandise goods sold 91.917 171.551
Cost of services sold 1.702.925 1.201.580
Cost of other sales 370.260 221.657
9.640.818 6.797.424
21. GENERAL ADMINISTRATIVE EXPENSES, MARKETING EXPENSES, RESEARCH AND DEVELOPMENT EXPENSES
2019 2018
General administrative expenses (-) 343.456 221.719
Marketing expenses (-) 204.118 150.760
Research and development expenses (-) 211.565 114.408
759.139 486.887
a) General administrative expenses (-) 2019 2018
Personnel expenses 202.003 135.236
Depreciation and amortization expenses 36.819 29.495
Expertise and consultancy expenses 8.261 7.257
Electricity expenses 7.119 5.188
Insurance expenses 6.628 1.420
Travel expenses 6.508 3.036
Rent expenses 5.491 2.820
Legal expenses 4.409 3.850
Personnel meal expenses 3.743 2.682
Personnel transportation expenses 2.765 2.564
Property and environmental cleaning tax 2.055 1.778
Course and seminar expenses 1.641 879
Water expenses 658 929
Other 55.356 24.585
343.456 221.719

21. GENERAL ADMINISTRATIVE EXPENSES, MARKETING EXPENSES, RESEARCH AND DEVELOPMENT EXPENSES (continued)
b) Marketing expenses (-) 2019 2018
Subcontractor service expenses 40.335 12.233
Exhibition expenses 37.794 27.406
Commission expenses 27.834 44.494
Shipping and delivery expenses 11.550 5.700
Travel expenses 10.576 7.378
Advertising expenses 7.316 3.743
Expertise and Consultancy expenses 5.288 7.246
Packaging expenses 4.592 3.876
Samples expenses 4.586 2.585
Stamp duty expenses 3.382 9.788
Representation expenses 1.442 2.191
Depreciation and amortization expenses 1.013 665
Other 13.912 2.873
204.118 150.760
c) Research and development expenses (-) 2019 2018
Depreciation and amortization expenses 49.831 37.338
Equipment costs 33.760 14.718
Other 52.913 12.574
211.565 114.408
22. OTHER OPERATING INCOME AND EXPENSES

a) Other operating income
2019 2018
Foreign currency exchange gains 3.650.791 5.590.625
Rediscounted interest income 63.436 19.495
Free of charge investment income17 43.225 22.362
Other income 60.918 21.685
3.818.370 5.654.167
17
Free of charge investment income comprises of fixed assets donated by public bodies and utilized within the scope of research projects conducted with universities. Subsequent to the
completion of these projects, the subject matter fixed assets have been incorporated to the Group without any charge.
b) Other operating expenses (-)

2019 2018
Foreign currency exchange losses 3.175.862 5.075.934
Rediscounted interest expense 48.902 61.378
Other expense and losses 28.938 15.964
3.253.702 5.153.276

23. INCOME FROM INVESTING ACTIVITIES

2019 2018
Gain/(loss) on sales profit of marketable securities 1.243 --
Dividend income 4.618 5.222
Gain/(loss) on sales profit of fixed assets 518 (433)
6.379 4.789
24. FINANCIAL INCOME

(Restated)
2019 2018
Interest income 259.744 366.285
TFRS 15 financial component effect 472.563 271.472
Foreign currency exchange gains on bank loans 246.553 238.722
Gain/(loss) on derivative ınstruments (forward) 6.347 --
985.207 876.479
25. FINANCIAL EXPENSES

2019 2018
Foreign currency exchange losses from bank loans (-) 387.879 350.329
TFRS 15 financial component effect (-) 380.510 474.279
Interest cost related with employee benefits (-) 6.100 4.795
Rediscount expenses at bank loans (-) -- 1.102
Interest cost of borrowings (-) 88.153 25.142
862.642 855.647
26. ANALYSIS OF OTHER COMPREHENSIVE INCOME ITEMS

2019 2018
Gain from revaluation of available for sale financial assets 933.298 729.612
Revaluation of property 207.431 207.431
Cumulative Translation Adjustments 35.442 25.507
Loss on remeasurement of defined benefit plans (32.354) (18.073)
1.143.817 944.477
Revaluation reserve available for sale financial 31 December 31 December
assets 2019 2018
Gain on revaluation and reclassification of available for sale financial assets 214.406 204.387
Deferred tax liability arising from revaluation (10.720) (10.219)
Gain on revaluation or reclassification of available for sale financial assets arises due to revaluation of financial investments. When available for
sale financial assets are sold, any related amount included in revaluation reserve is transferred to profit or loss.

26. ANALYSIS OF OTHER COMPREHENSIVE INCOME ITEMS (continued)

Revaluation of property 2019 2018
Opening balance (Previously reported) 207.431 207.431
Increase arising from revaluation of property -- --
Deferred tax on revaluation18 -- --
Current period value increase deferred tax effect -- --
18
75 percent of the income derived by entities from the sale of participation shares and real estates (immovable property) preferential rights, founders’ shares and redeemed shares which
are carried in assets at least for two years is exempt from corporate tax as of 31 December 2017. However, according to the amendments by Law numbered 7061, this rate is educed from 75
percent to 50 percent with regard to immovable properties and tax declarations starting from 2018 will be calculated using 50 percent for immovable properties.
Revaluation of property increase arises from revaluation of the lands. 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.
The fair value of the lands owned by the Group is revalued on 11 December 2017 by Metrik Gayrimenkul Değerleme Danışmanlık Anonim Şirketi
(“Metrik Değerleme”), an independent appraisal company.
Foreign currency exchange differences: 2019 2018
Currency differences from net asset currency translation investent in foreign operations 9.935 20.261
Gain/Loss on remeasurement of defined benefit plans 2019 2018
Opening balance (18.073) 1.656
Gain/Loss on remeasurement of defined benefit plans (17.851) (24.662)
Deferred tax on gain/loss on remeasurement of defined benefit plans 3.570 4.933
Closing balance (32.354) (18.073)
27. INCOME TAXES

Corporate tax liabilities: 31 December 2019 31 December 2018
Current corporate tax provision 14.868 11.022
Less: Prepaid taxes and funds (2.021) (8.186)
12.847 2.836
Tax income: 2019 2018
Current corporate tax expense (14.868) (11.022)
Deferred tax income 59.010 88.603
44.142 77.581
1 January-31 December 2019

Amount
Tax effects related to components of other comprehensive income before tax Tax income/expense Net of tax amount
Defined benefit plan revaluation gains/losses (17.851) 3.570 (14.281)
Cumulative Currency Translation Adjustments 9.935 -- 9.935
Gain on revaluation of available for sale financial assets gains/
losses 214.406 (10.720) 203.686
Other comprehensive income in the period 206.490 (7.150) 199.340

27. INCOME TAXES (continued)

1 January-31 December 2018
Amount
Tax effects related to components of other comprehensive income before tax Tax income/expense Net of tax amount
Defined benefit plan revaluation gains/losses (24.662) 4.933 (19.729)
Cumulative Translation Adjustments 20.261 -- 20.261
Gain on revaluation of available for sale financial assets gains/
losses 204.387 (10.219) 194.168
Other comprehensive income in the period 199.986 (5.286) 194.700
Tax recognized directly in equity 1 January- 1 January-

2019 2018
Deferred tax:
- Revaluation of property -- --
- Gain on revaluation of available for sale financial assets (10.720) (10.219)
- Actuarial gain/loss 3.570 4.933
Deferred tax recognized directly in equity (7.150) (5.286)
Corporate tax
The Group is subject to Turkish corporate taxes. The corporate income tax is declared until the relevant accounting period-end’s following fourth
month, twenty-fifth day’s evening and it is batch paid until the end of the related month. In accordance with the tax legislation, quarterly 22
percent (31 December 2018: 22 percent) on profits of advance tax is being calculated and paid. The amounts paid in this way are deducted by
the tax on annual earning.
In accordance with the tax legislation in Turkey, financial losses could be carried forward for a maximum of five years that the year they appeared.
Besides, tax returns and the related accounting records may be reviewed within five years by the tax administration.
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 rate that will be accrued based on rate able profit of the company is calculated on a basis by including disallowed deductions
written of as expense when determining commercial profit with excluding tax-exempt profits and other discounts (also previous year losses and
investments allowances used, if preferred)
The tax rate in 2019 is 22 percent (31 December 2018: 20 percent).
Deferred Tax
The Group recognizes deferred tax assets and liabilities based upon temporary differences arising from 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 the differences are given below.
In Turkey, corporate tax rate is 22 percent as of 31 December 2019 (2018: 22 percent). However, according to the Article 91 of the Law numbered
7061 “Legislation on Amendment of Certain Tax Legislation and Other Certain Legislation” which was published on the Official Gazette
numbered 30261 on 5 December 2017 and according to the provisional clause 10 added to the Corporate Tax Law numbered 5520; corporate tax
rate for the taxation periods of 2018, 2019 and 2020 is amended to be 22 percent, which would later be applied as 20 percent at the end of these
periods.
In Turkey, the tax legislation does not permit a parent company and its subsidiaries to file a consolidated tax return. Therefore, provision for taxes,
as reflected in the consolidated financial statements, has been calculated on a separate-entity basis.
The dividend income (excluding the participation certificates of investment funds and profit shares derived from the share certificates of
investment trusts) derived by entities from the participation in the capital of another resident entity is exempt from corporate tax. Furthermore,
75 percent of the income derived by entities from the sale of participation shares and real estates (immovable property) preferential rights,
founders’ shares and redeemed shares which are carried in assets at least for two years is exempt from corporate tax as of 31 December 2018.
However, according to the amendments by Law numbered 7061, this rate is reduced from 75 percent to 50 percent with regard to immovable
properties and tax declarations starting from 2018 will be calculated using 50 percent for immovable properties. In order to be able to benefit
from the exemption, the relevant income should be kept under a fund account in the liabilities and should not be withdrawn from the enterprise
for 5 years. The sales amount should be collected by the end of the second calendar year following the year of sale.

27 INCOME TAXES (continued)

Deferred Tax (continued)
The details of deferred tax assets and liabilities of the Group are as follows:
Deferred Tax Assets: 31 December 2019 31 December 2018
Discount on receivables 10.394 13.343
Adjustment to costs and provision for expected losses of construction contracts 1.656.545 1.382.112
Allowance for impairment on inventories 1.878 1.646
Provision for delay penalties 22.112 9.109
Provision for warranties 161.501 97.848
Provision for severance pay 41.187 36.938
Provision for retirement bonus pay 3.931 2.836
Provision for annual leave 16.020 10.864
Provision for legal cases 326 28
Provision for doubtful receivables 990 288
Accumulated research and development incentive 849.723 912.673
Deferred Tax Liabilities: 31 December 2019 31 December 2018
Discount on payables (2.664) (2.614)
Adjustment of progress payments for long- term construction projects (1.854.233) (1.623.722)
Depreciation of fixed assets/amortization of intangible assets (49.540) (45.818)
Fixed assets revaluation fund (23.039) (23.039)
Gain on revaluation of available for sale financial assets (49.121) (38.400)
Other (59) --
Deferred tax assets 2.764.607 2.467.685

Deferred tax liabilities (1.978.656) (1.733.593)
Deferred tax assets – net 785.951 734.092

27. INCOME TAXES (continued)

Deferred tax (continued)
2019 2018
Movement of deferred tax assets/(liabilities):
Opening balance as of 1 January 734.092 650.775
Charged to statement of profit or loss 59.010 88.603
Charged to equity (7.150) (5.286)
785.951 734.092
Effective Tax 1 January- Effective Tax 1 January-

Rate 31 December Rate 31 December
Tax reconciliations: (%) 2019 (%) 2018
Profit before tax from continuing operations 3.308.531 2.241.766
Income tax rate 22% 22%
Tax at the domestic income tax rate 22 727.877 22 493.188
Tax effects of:

- revenue that is exempt from taxation (1) (32.452) (28) (635.254)
- expenses that are not deductible in determining taxable
profit 1 39.091 28 637.293
- R&D incentives and other income exempt from taxation (23) (750.333) (24) (542.019)
- Change effect of determining statutory tax rate as 20
percent to 22 percent for 3 years (1) (22.085) (1) (32.185)
- Subsidiaries and associates revenue that is exempt from
taxation -- -- -- 1.312
- effect of other adjustments -- (6.240) -- 84
Tax income recognized in profit or loss (1) (44.142) (3) (77.581)
28. EARNINGS PER SHARE

Earnings per share is calculated by dividing profit or loss attributable to ordinary equity holders of the parent entity by the weighted average
number of ordinary shares outstanding during the period. The Group does not have diluted shares.
For the years ended 31 December 2019 and 2018, earnings per share calculations are as follows:
2019 2018
Number of shares outstanding (in thousands) 1.140.000 1.079.781
Net profit – TL 3.340.447 2.318.197
Earnings per 100 shares 293,02 214,69
Diluted earnings per 100 shares 293,02 214,69
29. FINANCIAL INVESTMENTS

Financial Investments
Short-term Financial Investments
Realization of derivative instruments (forward) 6.039 --
6.039 --
Non-Current Financial Investments

a) Available for sale financial investments 987.560 773.154
b) Financial investments valued at cost that do not have a quoted market value 904 5.511
988.464 778.665

29. FINANCIAL INVESTMENTS (continued)

a) Available for sale financial investments (continued)
Financial Investments (continued)
a) Fair Value Difference Reflect in Other Comprehensive income
Fair value difference reflect in other comprehensive income that are not traded in an
active market 988.464 778.665
988.464 778.665
ROKETSAN which is Group’s equity investment is revalued and stated at fair value. As of 31 December 2019, the revaluation was performed
by Oyak Yatırım Menkul Değerler Anonim Şirketi which is an independent valuation company. The fair value was determined according to
“Discounted Cash Flow”, “Similar Company Comparison” and “Realized Company Mergers and Acquisitions” methodologies. Discount ratio
used in “Discounted Cash Flow”method is 19 percent (31 December 2018: 21 percent).
Company Name Ratio (%) 31 December 2019 Ratio (%) 31 December 2018
ROKETSAN 14,897 987.560 14,897 773.154
Roketsan shares, shown under available for sale financial investments, are reported on the third level in the fair value hierarchy (Note 32).
b) Financial investments valued at cost that do not have a quoted market value
The Group’s equity investment and participation rate and the amount shown in financial investments are as follows:
Company Name Ratio (%) 31 December 2019 Ratio (%) 31 December 2018
ULAK 51 -- -- 5.100
ASPİLSAN 1 904 1 411
904 5.511
The above available-for-sale equity investment amounting to TL 904 (31 December 2018: TL 5.511) does not have a quoted market value and
the fair value cannot be reliably measured due to a wide 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.
30 FINANCIAL LIABILITIES
Financial Liabilities
2019 2018
Short-term financial liabilities Unsecured loan 1.522.010 675.715
Other short-term financial liabilities Unsecured loan 90.311 22.811
Current portion of long-term financial liabilities Secured loan 611.198 67.277
Total short-term financial liabilities 2.223.519 765.803
Other long-term financial liabilities Secured loan 9.098 20.234

Total long-term financial liabilities 9.098 20.234
Total financial liabilities 2.232.617 786.037
As of 31 December 2019, TL 475.216 of the short term financial borrowings are USD Rediscount Credits, which have maturity dates due between
January 2020 -April 2020 and interest rates between 2,73 – 4,99 percent. Short term borrowings in terms of EUR, which have maturity dates due
between January 2020 -July 2020 amounting to TL 1.046.794 which has interest rate between 0,65-1,60 percent. Current portions of long-term
financial liabilities are EUR and “İvme” Credit which have amounted to TL 506.198 and TL 105.000, respectively. They have interest rates between
2,75- 10,55 and maturity dates between July 2020- November 2020.
The TL 6.045 amounted portion of short term and long term financial liabilities have consisted of loans for supplier payments with 12 month
maturity and interest rate of 11,50 percent. The rest of the short term other financial liabilities consist of loans borrowed for social security
payments with 45 days maturity and interest rate of 1 percent from Ziraat Bank.

30 FINANCIAL LIABILITIES (continued)

Financial Liabilities (continued)
As of 31 December 2018, TL 675.715 in the short term financial liabilities consist of USD Discount Currency Loans in which instalment payments
maturity dates are between January-July 2019 and interest rate between 3,16-3,54. In the long term financial liabilities, current portion of all
short term liabilities consist of instalment payments of the principal equal to USD 12.790 that belongs to credits that are taken from Presidency of
Defense Industries with the interest rate of 2,1 percent and 3,5 percent respectively and maturity date is August 2019. Also, there are TL 22.811
financial liability in order to pay Social Security payments.
As of 31 December 2018, all long term financial liabilities consist of loans amounting to USD 3.846 with interest rates of 2,1 percent and 3,5
percent from Presidency of Defense Industries and maturity date is October 2020. A letter of guarantee amounting to USD 16.636 was given for
the loan.
Bank Loans
31 December 2019
Weighted average
Currency interest rate (%) Short-term Long-term
Euro 1,02 1.551.585 --
TL 10,55 196.718 9.098
USD 3,79 475.216 --
2.223.519 9.098
31 December 2018
Weighted average
Currency interest rate (%) Short-term Long-term
TL - 22.811 --
USD 3,17 742.992 20.234
765.803 20.234
The breakdown of the loan repayments with respect to their maturities is as follows:
Within 1 year 2.223.519 765.803
Between 1-2 years 9.098 20.234
2.232.617 786.037
31 NATURE AND LEVEL OF RISKS RELATED TO FINANCIAL INSTRUMENTS

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
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 30, cash and cash equivalents and equity
attributable to equity holders of the parent, comprising issued capital, reserves and retained earnings.
The Group’s board of directors review capital structure regularly in the meetings. 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.

31 NATURE AND LEVEL OF RISKS RELATED TO FINANCIAL INSTRUMENTS (continued)

Net debt and share capital as of 31 December 2019 and 2018 is as follows:
2019 2018
Total liabilities 2.232.617 786.037
Less: Cash and cash equivalents (3.513.842) (3.115.691)
Net debt (asset) (1.281.225) (2.329.653)
Total equity 13.568.899 10.177.021
b) Financial Risk Factors:

It refers to the risks arising from the financial structure and financial preferences of the Group. Exchange rate, liquidity and interest rate risks are
some risks under this heading. 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.
ASELSAN’s Enterprise Risk Management Policy aims; to take proper actions against uncertainties that threaten the existence of the Company and
to protect corporate identity and stakeholders’ interest at all conditions. Risk management is an integrated element of Corporate Management.
The information gathered within the scope of risk management activities in ASELSAN is integrated into decision making mechanisms.
The “top-down” and “bottom-up” approach is being applied into Enterprise Risk Management activities together. Risks, which are significant
enough to affect ASELSAN’s achievement of its targets, are identified, evaluated, monitored and reported along with the risk responses and
precautions to be taken. At ASELSAN; The Enterprise Risk Management process is regularly reviewed and improved. ASELSAN’s employees and
business processes are at the center of the Enterprise Risk Management System.
Group’s finance department identifies and evaluates financial risks and use tools to reduce risks by working in cooperation with the group’s
operating units.
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. The
Group management does not foresee significant credit risk. 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 reporting date is as follows:
Receivables
Trade Receivables Other Receivables
Related Third Related Third Bank
31 December 2019 party party party party Deposits Other
Maximum net credit risk as of the reporting date (A+B+C+D)19 5.384.727 4.085.105 1.150 380.468 3.559.515 10.053
- The part of maximum risk under guarantee with collateral etc.20 -- 6.450 -- -- -- --
A. Net book value of financial assets that are neither past due nor
impaired 5.384.727 2.727.841 1.150 380.468 3.559.515 10.053
B. Net book value of financial assets that are past due but not
impaired -- 1.357.264 -- -- -- --
C. Net book value of impaired assets -- -- -- -- -- --
- Overdue (gross carrying amount) -- 58.960 -- -- -- --
- Impairment (-)
- The part of net value under guarantee with collateral etc. -- (58.960) -- -- -- --
- Undue (gross carrying amount) -- -- -- -- -- --
- Impairment (-) -- -- -- -- -- --
- The part of net value under guarantee with collateral etc. -- -- -- -- -- --
D. Factors that include off balance sheet credit risks -- -- -- -- -- --
19
While determining the amount, components which provide increase on credit reliability, like guarantees received are not taken into consideration.
20
The guarantees consist of the letters of guarantees, collaterals, checks and mortgages.


Credit risk (continued)
Carrying values of the financial assets reflect the maximum exposure to credit risk. The credit risks as of reporting date is as follows:
Receivables
Trade Receivables Other Receivables
Related Third Related Third Bank
31 December 2018 party party party party Deposits Other
Maximum net credit risk as of the reporting date (A+B+C+D)21 2.749.390 3.149.662 24 204.857 3.187.487 2.320
- The part of maximum risk under guarantee with collateral etc.22 -- 4.901 -- -- -- --
A. Net book value of financial assets that are neither past due nor
impaired 2.749.390 2.317.500 24 204.857 3.187.487 2.320
B. Net book value of financial assets that are past due but not
impaired -- 832.162 -- -- -- --
C. Net book value of impaired assets -- -- -- -- -- --
- Overdue (gross carrying amount) -- 2.218 -- -- -- --
- Impairment (-) (2.218)
- Undue (gross carrying amount) -- -- -- -- -- --
- Impairment (-) -- -- -- -- -- --
D. Factors that include off balance sheet credit risks -- -- -- -- -- --
21
While determining the amount, components which provide increase on credit reliability, like guarantees received are not taken into consideration.
22
The guarantees consist of the letters of guarantees, collaterals, checks and mortgages.
The aging of the overdue receivables is as follows:

2019 2018
Overdue by 1-30 days 74.658 189.827
Overdue by 1-3 months 76.222 178.415
Overdue by 3-12 months 481.981 245.265
Overdue by 12 months 724.403 218.655
Total receivables 1.357.264 832.162
No collateral has been received for the overdue receivables.

Management has assessed its aged receivables and does not expect any collection problem arising from its aged receivables.
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. ASELSAN eliminates the liquidity risk, which is known as the risk arising from default and
inability to fund the assets, it monitors forecasted and actual cash flows regularly and ensures the continuity of adequate funds and credit lines by
matching the maturity of financial assets and liabilities. In order to manage the interest rate risk arising from changes in assets and/or liabilities
as a result of fluctuations in interest rates in the future, it conducts transactions with fixed interest rates and uses financial derivative instruments
when necessary.
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. When receivables and payables are not constant, amounts are determined in accordance with interest rates generated
from return rates as of the reporting date.


Liquidity Risk (continued)
The maturities of the financial liabilities determined with respect to the contracts including the expected interest payments as of 31 December
2019 is as follows:
Total cash
outflow
according
to contract Less than 3 3-12 More than 5
Contractual Maturity Analysis Carrying value (I+II+III+IV) Months (I) Months (II) 1-5 Years (III) Years (IV)
Non-derivative financial instruments
Financial liabilities 2.232.617 2.232.617 775.358 1.448.161 9.098 --
Total cash
outflow
according
Expected Maturity Carrying value (I+II+III+IV) Months (I) Months (II) 1-5 Years (III) Years (IV)
Trade payables 5.468.161 5.481.171 3.375.866 240.182 1.865.123 --
Other payables 63.429 63.429 58.500 -- 4.929 --
The maturities of the financial liabilities determined with respect to the contracts including the expected interest payments as of 31 December
2018 is as follows:
Total cash
outflow
according
Contractual Maturity Analysis Carrying value (I+II+III+IV) Months (I) Months (II) 1-5 Years (III) Years (IV)
Financial liabilities 786.037 788.537 380.949 386.823 20.765 --
Total cash
outflow
according
Expected Maturity Carrying value (I+II+III+IV) Months (I) Months (II) 1-5 Years (III) Years (IV)
Trade payables 4.316.866 4.328.746 645.481 1.914.982 1.768.283 --
Other payables 2.838 2.838 2.732 -- 106 --
Market risk management

The Group’s activities, as detailed below, expose primarily to the financial risks from changes in foreign currency exchange rates and interest
rates.
Market risk exposures are evaluated 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
compared to prior year.
Foreign currency risk management
The exchange rate risk, which is any kind of change that may occur in assets and/or liabilities as a result of exchange rate fluctuations in the
future, ASELSAN aims to minimize the effect of exchange rate fluctuations by keeping the long and short foreign exchange position at a minimum
level. The balance sheet methods have been used in managing the exchange rate risk. Implementations such as; making use of foreign exchange
denominated loans in line with the company’s export volume, matching the contract currency with the currency of the costs of the project, and
signing the subcontractor contracts in line with the main contract currency are used.


FOREIGN EXCHANGE POSITION
TL Equivalent TL equivalent TL equivalent
(Functional by using by using
31 December 2019 currency) USD closing rates EURO closing rates Other23
1. Trade receivables 3.205.720 267.003 1.586.053 242.283 1.611.329 8.338
2a. Monetary financial assets (including
cash, bank) 1.028.481 47.173 280.219 112.018 744.984 3.278
2b. Non- monetary financial assets 448.065 58.665 348.484 24.294 161.569 52.714
3. Other 6.435 254 1.511 735 4.891 33
4. Current assets (1+2+3) 4.688.701 373.095 2.216.267 379.330 2.522.773 64.363
5. Trade receivables 4.018.835 547.674 3.253.291 115.109 765.544 --
6a. Monetary trade receivables -- -- -- -- -- --
6b. Non-monetary trade receivables 315.941 13.765 81.766 93.322 620.649 10.020
7. Other 14.357 979 5.814 1.199 7.970 573
8. Long-term assets (5+6+7) 4.349.133 562.418 3.340.871 209.630 1.394.163 10.593
9. Total assets (4+8) 9.037.834 935.513 5.557.138 588.960 3.916.936 74.956
10. Trade payables 1.783.658 149.765 889.633 123.348 820.340 73.685
11. Financial liabilities 2.026.801 80.000 475.216 233.300 1.551.585 --
12a. Other monetary financial liabilities 715 111 659 8 56 --
12b. Other non-monetary financial liabilities 326.504 87.643 520.619 69.829 464.398 --
13. Current liabilities (10+11+12) 4.137.678 317.519 1.886.127 426.485 2.836.379 73.685
14. Trade payables 1.634.038 220.533 1.310.011 48.721 324.027 --
15. Financial liabilities -- -- -- -- -- --
16a. Other monetary financial liabilities 1.038 171 1.018 3 20 --
16b. Other non-monetary financial liabilities 666.536 207.284 1.231.304 163.548 1.087.692 --
17. Non-current liabilities (14+15+16) 2.301.612 427.988 2.542.333 212.272 1.411.739 --
23
Comprises of the currencies CAD, CHF, GBP, JPY, AUD, DKK, ZAR, AED, PHP, SAR.

TL Equivalent TL equivalent TL equivalent
(Functional by using by using
31 December 2019 currency) USD closing rates EURO closing rates Other
18. Total liabilities (13+17) 6.439.290 745.507 4.428.460 638.757 4.248.118 73.685
19. Net asset/liability position of off-balance
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) 2.598.544 190.006 1.128.678 (49.797) (331.182) 1.271
21. Net foreign currency asset/liability position
of monetary items (1+2a+5+6a-10-11-12a-14-
15-16a) 2.806.786 411.270 2.443.026 64.030 425.829 (62.069)
22. Fair value of derivative financial instruments
used in foreign currency hedge -- -- -- -- -- --
23. Hedged foreign currency assets -- -- -- -- -- --
24. Hedged foreign currency liabilities -- -- -- -- -- --
25. Exports 1.573.783 258.181 1.533.613 4.983 34.149 --
26. Imports 3.543.961 405.543 2.409.006 134.467 894.286 240.669
Accompanying foreign exchange position which was prepared in accordance with TAS is different from the foreign exchange position of the
financial statement which is prepared according to General Communiqué on Accounting System Application (GCASA). The difference is mainly
due to the adjustments and classifications which are related with TFRS 15.


“For TL functional currency” calculations regarding “Other non-monetary assets” and “Other non-monetary liabilities” presented under foreign
currency position, advances received are considered with regard to historic values therefore “TL equivalent of currency as at balance sheet date”
differentiate.
TL equivalent TL equivalent
TL Equivalent by using by using
(Functional closing closing
31 December 2018 currency) USD rates EURO rates Other24
1. Trade receivables 2.323.205 271.510 1.428.380 147.264 887.703 7.122
2a. Monetary financial assets (including cash,
bank) 167.822 28.774 151.379 2.276 13.720 2.723
2b. Non- monetary financial assets 468.137 57.449 302.234 36.284 218.720 51.360
3. Other 7.281 9 50 1.180 7.115 116
4. Current assets (1+2+3) 2.966.445 357.742 1.882.043 187.004 1.127.258 61.321
5. Trade receivables 2.056.596 308.410 1.622.516 72.011 434.080 --
6a. Monetary trade receivables -- -- -- -- -- --
6b. Non-monetary trade receivables 259.803 15.969 84.014 86.722 522.762 7.571
7. Other 23.116 1.938 10.193 2.031 12.242 681
8. Long-term assets (5+6+7) 2.339.515 326.317 1.716.723 160.764 969.084 8.252
9. Total assets (4+8) 5.305.960 684.059 3.598.766 347.768 2.096.342 69.573
10. Trade payables 1.116.287 136.214 716.609 54.992 331.486 68.192
11. Financial liabilities 742.992 141.229 742.992 -- -- --
12b. Other non-monetary financial liabilities 129.158 90.890 478.162 9.575 57.721 --
13. Current liabilities (10+11+12) 1.989.082 368.449 1.938.371 64.573 389.244 68.192
14. Trade payables 1.712.258 209.557 1.102.459 101.161 609.799 --
15. Financial liabilities 20.234 3.846 20.234 -- -- --
16b. Other non-monetary financial liabilities 1.577.348 132.773 698.504 284.949 1.717.669 --
17. Non-current liabilities (14+15+16) 3.309.892 346.182 1.821.231 386.113 2.327.486 --
24
Comprises of the currencies CAD, CHF, GBP, JPY, AUD, DKK, ZAR, AED, PHP, SAR.

TL equivalent TL equivalent
TL Equivalent by using by using
(Functional closing closing
31 December 2018 currency) USD rates EURO rates Other
18. Total liabilities (13+17) 5.298.974 714.631 3.759.602 450.686 2.716.730 68.192
19. Net asset/liability position of off-balance
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) 6.986 (30.572) (160.836) (102.918) (620.388) 1.381
21. Net foreign currency asset/liability position
of monetary items (1+2a+5+6a-10-11-12a-14-
15-16a) 955.155 117.726 619.339 65.389 394.163 (58.347)
22. Fair value of derivative financial instruments
used in foreign currency hedge -- -- -- -- -- --
23. Hedged foreign currency assets -- -- -- -- -- --
24. Hedged foreign currency liabilities -- -- -- -- -- --
25. Exports 888.955 163.712 797.410 16.390 91.545 --
26. Imports 3.111.856 376.008 1.978.139 148.001 892.148 241.569
Accompanying foreign exchange position which was prepared in accordance with TAS is different from the foreign exchange position of the
financial statement which is prepared according to General Communiqué on Accounting System Application (GCASA). The difference is mainly
due to the adjustments and classifications which are related with TFRS 15.


Foreign currency sensitivity
The Group is exposed to foreign currency risk with respect to USD and EURO. As of
31 December 2019, USD 1: TL 5,9402 (31 December 2018: TL 5,2609), EURO 1: TL 6,6506
(31 December 2018: TL 6,0280).
The following table details the Group’s sensitivity to a 10 percent increase and decrease in foreign exchange rates. 10 percent 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
present 10 percent change in foreign currency rates. This analysis does not include Group companies’ balance sheet items which have functional
currency other than TL. The effects of 10 percent changes in foreign currency rate on financial statements is as follows;
Foreign currency sensitivity table
31 December 2019
Profit/Loss Equity25
Appreciation of
Appreciation of Depreciation of foreign Depreciation of
foreign currency foreign currency currency foreign currency
Change of USD against TL by 10%:
1- USD denominated net assets/(liabilities) 244.303 (244.303) 244.303 (244.303)
2- Hedged amount against USD risk (-) -- -- -- --
3- Net effect of USD (1+2) 244.303 (244.303) 244.303 (244.303)
Change of EURO against TL by 10%:
4- EURO denominated net assets/(liabilities) 42.583 (42.583) 42.583 (42.583)
5- Hedged amount against EURO risk (-) -- -- -- --
6- Net effect of EURO (4+5) 42.583 (42.583) 42.583 (42.583)
Change of other currencies against TL by 10%:
7- Other currencies denominated net assets/(liabilities) (6.207) 6.207 (6.207) 6.207
8- Hedged amount against other currencies risk (-) -- -- -- --
9- Net effect of other currencies (7+8) (6.207) 6.207 (6.207) 6.207
25
Comprises of profit/loss effect.
Foreign currency sensitivity table

31 December 2018
Profit/Loss Equity26
Appreciation of
Appreciation of Depreciation of foreign Depreciation of
foreign currency foreign currency currency foreign currency
Change of USD against TL by 10%:
1- USD denominated net assets/(liabilities) 61.934 (61.934) 61.934 (61.934)
2- Hedged amount against USD risk (-) -- -- -- --
3- Net effect of USD (1+2) 61.934 (61.934) 61.934 (61.934)
Change of EURO against TL by 10%:
4- EURO denominated net assets/(liabilities) 39.416 (39.416) 39.416 (39.416)
5- Hedged amount against EURO risk (-) -- -- -- --
6- Net effect of EURO (4+5) 39.416 (39.416) 39.416 (39.416)
Change of other currencies against TL by 10%:
7- Other currencies denominated net assets/(liabilities) (5.835) 5.835 (5.835) 5.835
8- Hedged amount against other currencies risk (-) -- -- -- --
9- Net effect of other currencies (7+8) (5.835) 5.835 (5.835) 5.835
26
Comprises of profit/loss effect.
Interest rate risk management

As of 31 December 2019 and 31 December 2018, 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 2019, the Group does not have interest bearing financial assets, therefore there is no exposure to interest risk (31 December
2018: None).
Price risk
The Group usually enters into fixed price contracts, therefore, is not exposed to any major price risk.


Hierarchy of fair value
As of 31 December 2019 and 31 December 2018, the Group’s financial assets at their fair values are as in the following page:
32 FINANCIAL INSTRUMENTS FAIR VALUE DISCLOSURES AND EXPLANATIONS ON HEDGE ACCOUNTING
Financial
Financial Financial assets assets at fair Financial
assets at fair at amortized value through liabilities at
31 December 2019 value P/L cost OCI amortized cost Carrying value Note
Financial assets
Cash and cash equivalents -- 3.513.842 -- -- 3.513.842 3
Blocked deposits -- 49.949 -- -- 49.949 18
Financial investments 6.943 -- 987.560 -- 994.503 29
Equity accounted investments 121.769 -- -- -- 121.769 8
Trade receivables -- 9.469.832 -- -- 9.469.832 6
Financial liabilities
Borrowings -- -- -- 2.232.617 2.232.617 30
Trade payables -- -- -- 5.468.161 5.468.161 6
Other payables -- -- -- 63.429 63.429 7
Financial
Financial Financial assets assets at fair Financial
assets at fair at amortized value through liabilities at
31 December 2018 value P/L cost OCI amortized cost Carrying value Note
Financial assets
Cash and cash equivalents -- 3.115.691 -- -- 3.115.691 3
Blocked deposits -- 74.269 -- -- 74.269 18
Financial investments 5.511 -- 773.154 -- 778.665 29
Equity accounted investments 93.586 -- -- -- 93.586 8
Trade receivables -- 5.899.052 -- -- 5.899.052 6
Financial liabilities
Borrowings -- -- -- 786.037 786.037 30
Trade payables -- -- -- 4.316.866 4.316.866 6
Other payables -- -- -- 2.838 2.838 7
The Group’s management assesses that the carrying value reflects the fair value of financial instruments. Related financial assets are presented at cost
after deducting impairment allowance if any.
The fair values of financial assets and financial liabilities are determined as follows:
• Level 1: The fair value of financial assets and financial liabilities with standard terms and conditions and traded on active liquid markets are
determined with reference to quoted market prices;
• Level 2: The fair value of other financial assets and financial liabilities are determined in accordance with data which can be observed by
directly or indirectly and which excludes the registered prices described in Level 1 ; and
• Level 3: The fair value of the financial assets and financial liabilities are determined where there is no observable market data.

32 FINANCIAL INSTRUMENTS FAIR VALUE DISCLOSURES AND EXPLANATIONS ON HEDGE ACCOUNTING (continued)
Fair value hierarchy of financial assets that are measured at fair value:
ROKETSAN has presented under Group’s available for sale financial asset and measured at fair value as of 31 December 2019. The fair value of
ROKETSAN as of 31 December 2019 is TL 987.560 and was determined according to “Discounted Cash Flow”, “Similar Company Comparison”
and “Realized Company Mergers and Acquisitions” methodologies and its fair value hierarchy is Level 3.
Reconciliation of the Group’s assets and liabilities that are measured at Level 3 fair value are presented as follow:
Available for sale financial assets 31 December 2019 31 December 2018
Marketable Marketable
Equity Shares Equity Shares
Total gain/loss
- transferred to other comprehensive income 214.406 204.387
31 December 2019 Fair value level as of reporting date

TL TL TL
Financial Investments -- -- 987.560
-- -- 987.560
31 December 2018 Fair value level as of reporting date
TL TL TL
Financial Investments -- -- 773.154
-- -- 773.154
The movement of the fair value level as of 31 December 2019 is as follows:

Fair value level as of reporting date
TL TL TL
1 January 2019 -- -- 773.154
Additions -- -- 214.406
31 December 2019 -- -- 987.560
33. EXPLANATIONS RELATED TO THE STATEMENT OF CASH FLOW

Reconciliation of the movements related to cash flows from financing activities and liabilities
Non-cash movements
31 December Cash Exchange rate Other non-cash 31 December
2018 Movements Additions change movements 2019
Financial Liabilities (Note 30) 786.037 1.303.253 1.407 141.920 -- 2.232.617
Total liabilities arising from financing
activities 786.037 1.303.253 1.407 141.920 -- 2.232.617
The table above represents the changes in the cash amounts related to “Proceeds from Borrowings” and “Repayments from Borrowings” which are
presented under cash flows from financing activities.
34. EVENTS AFTER THE REPORTING PERIOD
There has been no related events after the reporting period.

INDEPENDENT AUDITOR’S REPORT
To the Board of Directors

Aselsan Elektronik Sanayi ve Ticaret Anonim Şirketi
A. Audit of the Consolidated Financial Statements
Opinion
We have audited the consolidated financial statements of Aselsan Elektronik Sanayi ve Ticaret Anonim Şirketi (“the Company”) and its
subsidiaries (“the Group”), which comprise the consolidated statement of financial position as at December 31, 2019, and the consolidated
statement of profit or loss and other comprehensive income, consolidated statement of changes in equity and consolidated statement of cash
flows for the year then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position
of the Group as at December 31, 2019, and its consolidated financial performance and its consolidated cash flows for the year then ended in
accordance with Turkish Accounting Standards (“TAS”).
Basis for Opinion

We conducted our audit in accordance with standards on auditing issued by the Capital Markets Board of Turkey and the Auditing Standards
published by the Public Oversight Accounting and Auditing Standards Authority. Our responsibilities under those standards are further
described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent
of the Group in accordance with the Code of Ethics published by the Public Oversight Accounting and Auditing Standards Authority. We have
fulfilled our other ethical responsibilities in accordance with the Code of Ethics. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our opinion.
Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial
statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole,
and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Key Audit Matters How the Matter is Handled

Revenue – Accounting of Revenue Recognised Over Time Our audit procedures included, in addition to others, the following;
An important part of Group’s revenue is generated from construction Controlling the terms of the contract in accordance with the criteria of
contracts which are recognised over time. Revenue recognised over over time accounting
time is mainly due to contracts made with the Presidency of Defense Cross-check of the amounts subject to revenue calculation with
Industry. The Group recognises revenue over-time if any of the following contracts,
conditions is met: Controlling monthly changes of variables that directly affect revenue
a) The customer simultaneously receives and consumes the benefits as such as profitability on project basis,
the entity performs Analytical review of the accuracy of expected loss provision,
b) The customer controls the asset as the entity creates or enhances it, Performing control tests and test of details for contract cost,
c) Group’s performance does not create an asset for which the entity Performing test of details for financing components
has an use; and alternative there is a right to payment for performance Questioning the annual changes of over-time revenue and related
to date costs.
Due to the fact that over-time revenue is one of the Group’s core
business volume and size indicators, implementation of related
accounting standards is complex and includes management estimates
and judgements, this issue has been considered to be a key audit matter.
Accounting policies and amounts of the revenue detailed in Note 2.5
and Note 20 respectively
Key Audit Matters How the Matter is Handled

Capitalization of Development Cost Our audit procedures included, amongst others, the following;
The Group capitalizes development costs which are related with Examinations of nature of capitalized develeopment costs related to
development activities and approved by the management. each project,
Capitalized development costs amount to a net book value of TRL Examinations of the suitability of management assessments for projects
1.192.759 as 31 December 2019 in the accompanying consolidated at development phase
financial statements. Performing test of details for development costs,
Capitalized development costs on the consolidated financial statements Assessment of Group’s management approval process,
as of 31 December 2019 is significant for our audit due to variety of Additionally, inquiries have been perfomed with project engineers and
nature of costs, management judgments involved in the capitalization executives involved in research and development activities in related
process and projects contract costs. division of the Group.,
Explanations about intangible assets including the capitalized
development costs have been disclosed in Note 12.

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with TAS, 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.
In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends
to liquidate the Group or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Group’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements

In ındependent audit, the responsibilities of us as independent auditors are as follows:
- Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level
of assurance, but is not a guarantee that an audit conducted in accordance with the Auditing Standards published by the Public Oversight
Accounting and Auditing Standards Authority will always detect a material misstatement when it exists. Misstatements can arise from fraud or
error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with the Auditing Standards published by the Public Oversight Accounting and Auditing Standards Authority,
we exercise professional judgment and maintain professional skepticism throughout the audit.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements (continued)
We also:
• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and
perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our
opinion (The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.).
• Obtain an understanding of internal control relevant to the audit 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 Group’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by
management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained,
whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as
a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related
disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based
on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to
continue as a going concern.

• Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the
consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to
express an opinion on the consolidated financial statements. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence,
and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit
of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s
report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a
matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the
public interest benefits of such communication.
B) Reports on Independent Auditor’s Responsibilities Arising from Other Regulatory Requirements

1) Pursuant to Article 398 of the Turkish Commercial Code (“TCC”) no. 6102, the auditor’s report on early detection of risk system and the
authorized committee is submitted to the Company’s Board of Directors on 11 February 2020.
2) Pursuant to subparagraph 4, Article 402 of “TCC”, no significant matter has come to our attention that causes us to believe that the Company’s
bookkeeping activities for the period 1 January – 31 December 2019 is not in compliance with the code and provisions of the Parent Company’s
articles of association in relation to financial reporting.
3) Pursuant to subparagraph 4, Article 402 of “TCC”, the Board of Directors submitted to us the necessary explanations and provided required
documents within the context of audit.
Mehmet Nadi Abbasoğlu is the auditor responsible for conducting and finalizing this independent audit.
Partner
İstanbul, 11 February 2020

1. PRINCIPLES OF PREPARATION
2. COMPANY INFORMATION AND ORGANIZATIONAL STRUCTURE
3. THE COMPANY’S SHAREHOLDER STRUCTURE
a. Members of the Board of Directors and Senior Executives

b. Information on Business Partnerships, Associates, Subsidiaries, Joint Ventures and Branches
4. MAIN FACTORS THAT AFFECT THE PERFORMANCE, INVESTMENT AND DIVIDEND POLICY OF THE
COMPANY
5. ENTERPRISE RISK MANAGEMENT
a. Main Risk Categories

b. Early Detection and Management of Risk Committee Works
6. FINANCIAL INFORMATION OF THE COMPANY
a. Financial Resources of the Company

b. Research and Development Activities
c. Progress in Investments and Degree of Incentive Utilization
i. Investments
ii. Incentives
d. Production and Capacity
e. Revenue
f. Financial Ratios
7. CHANGES IN THE LEGISLATION WHICH WOULD HAVE SIGNIFICANT IMPACT ON THE

ACTIVITIES OF THE COMPANY
8. COMPLIANCE REPORT ON CORPORATE GOVERNANCE PRINCIPLES
9. INFORMATION REGARDING THE LAWSUITS OF THE GROUP
10. INFORMATION REGARDING THE TRANSACTIONS MADE WITHIN THE REPORTING PERIOD
i. Changes in the Articles of Association

ii. Collective Agreement Implementations, Rights and Benefits Provided to the Personnel and
Workers
iii. 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
iv. 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 iii 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
v. Information Regarding the Donations and Social Responsibility
12. APPENDIX-1 - STATEMENT FOR COMPLIANCE WITH CORPORATE GOVERNANCE PRINCIPLES

REPORT OF THE BOARD OF DIRECTORS FOR THE PERIOD
BETWEEN 1 JANUARY - 31 DECEMBER 2019
1. PRINCIPLES OF PREPARATION
The report of the Board of Directors is prepared on the basis of Communiqué Series II, No: 14.1 “Principles of Financial Reporting in Capital
Markets” dated 13 June 2013.
The report comprises the events took place during the period 1 January – 31 December 2019. The title of the main shareholder in the report is
ASELSAN Elektronik Sanayi ve Ticaret A.Ş.
2. COMPANY INFORMATION AND ORGANIZATIONAL STRUCTURE
The Company is a leading defense industry establishment developing advanced technology system solutions within land, air, naval and
aerospace platforms.
The Company, being an establishment of Turkish Armed Forces Foundation (“TSKGV”), stands in a position of a technology center within the
fields of design, development, manufacturing, system integration, modernization and after sales services of military and civil communication
systems, avionics systems, electronic warfare and intelligence systems, radar systems, command and control systems, naval warfare systems,
security systems, transportation systems, energy systems, traffic and automation systems, electro-optic systems and products.
The Company has been restructured under five Vice Presidencies that will carry the production and engineering tasks, which are;
Communication and Information Technologies (“HBT”), Microelectronics, Guidance and Electro-Optics (“MGEO”), Defense Systems
Technologies (“SST”), Radar, Electronic Warfare and Intelligence Systems (“REHİS”) and Transportation, Security, Energy and Automation
Systems (“UGES”).
In order for General Management to fulfill planning at strategic level, pursuing and assessing functions in a more efficient way, four different
Vice Presidencies have been constituted as Financial Management Vice Presidency, Corporate Management Vice Presidency, Technology and
Strategy Vice Presidency and Business Development and Marketing Vice Presidency; in addition to these Vice Presidencies there are also Legal
Affairs and Office Of The Private Secretary.
The Internal Audit Department and Board of Directors Planning and Coordination Management have been established under the Board of
Directors.
The Company maintains production and engineering operations in Ankara, METU Teknokent and Teknopark Ankara, production and engineering
operations in Macunköy, Akyurt and Gölbaşı settlements. General Management is located in Ankara Macunköy settlement. Furthermore, the
Company maintains engineering operations in Istanbul Teknopark.

Rankings of Company’s international, country-wide, sectorial rating systems are shown below;
Ranking
Related
Corporation Research / Study
Period
Current Prior
International Rankings
Defense News Magazine Defense News Top 100 2019 52 55
SIPRI SIPRI Top 100 2019 54 62
European Commission Industrial R&D Investment Scoreboard Top 2500 2019 1.356 1.111
National Rankings
ICI 500 Top Industry Companies 2019 15 20
Istanbul Chamber of Industry
ICI 500 - Private Companies 2019 15 19
Fortune Magazine Top 500 Companies 2019 32 38
Capital Magazine Top 500 Private Companies 2019 42 47
Sustainability Index 2019 No Ranking
Corporate Management Index 2019 No Ranking
BIST (Borsa Istanbul)
BIST Top 30 Index 2019 No Ranking
BIST Top 30 Market Value Sequence 2019 12 4
TEA (Turkish Exporters
Top 1000 Exporters 2019 108 68
Assembly)
Research and Development Expenditures Turkey
Turkish Time Journal 2019 1 1
Top 100
Deloitte Technology Fast 50 / Big Star Category 2019 No Ranking
Brand Finance Most Valuable Firms (100 Brands) 2019 33 28
Bloomberg Businessweek Top 50 Firms (Between Universities) 2019 7 3
Ideal Employers (Engineering and IT)- 100
Universum 2019 1 1
Companies)
Firms Which Have Well Management of Climate Our Company has placed within
CDP (Carbon Disclosure
Changes and Highest Greenhouse Gas Emission 2019 the first 3 companies in “CDP
Project)
Performance (Turkey) Turkey Leaders”

Commercial title and trade registration number of the company and contact information pertaining to its headquarters, branches and its website
addresses are shown below;
Trade
Company Type Country/City Address Telephone/Fax Web site
Register No
Tel: +90 (312) 592
ASELSAN Mehmet Akif Ersoy Mahallesi
Turkey 1000
Elektronik Sanayi Headquarters 31177 296. Cad. No: 16 06370 www.aselsan.com.tr
/Ankara Fax: +90 (312) 354
ve Ticaret A.Ş. Yenimahalle/Ankara
1302
Building 4, Room 005 CSIR Tel: +27 (0) 12 349
ASELSAN Republic of
Campus, Meiring Naude 2613
South Africa Branch South Africa/ -- --
Drive, Pretoria Gauteng, Fax: +27 (0) 12 349
Branch Pretoria
0001, South Africa 2544
ASELSAN
Macedonia/ Ankarska 29A, 1000 Skopje/
Macedonia Branch -- -- --
Skopje Macedonia
Branch
Orta Doğu Teknik
ASELSAN Cyprus Üniversitesi Kuzey Kıbrıs
Advanced TRNC/ Kampüsü ODTÜ KALTEV AR-
Branch -- -- www.aselsan.com.tr
Technology Güzelyurt GE Binası No: E-19 99738
Research Center Kalkanlı/Güzelyurt/Turkish
Republic of Northern Cyprus
Tel: +966 11 211
A. Building 17B, 1st Floor, The
Saudi Arabia Saudi Arabia/ 1111
Project Office -- Business Gate, Riyadh, 11422, --
Contact Office Riyadh Fax: +966 11 268
Saudi Arabia
1111
The Gate Tower II 7th Floor
ASELSAN Qatar Qatar/ - Office 725 West Bay, Tel: +974 402 06000
Project Office -- --
Office Doha Maysaloun Street P.O. Box Fax: +974 402 06006
14023 Doha / QATAR
The BAE Project Office was closed in 2019.

3. THE COMPANY’S SHAREHOLDER STRUCTURE
Registered capital ceiling of the Company is TL 2.000.000.000 (TL two billion). The nominal capital of the Company is TL 1.140.000.000 (TL
one billion, one hundred and forty million) and is divided into 1.140.000.000 (one billion, one hundred and forty million) shares, each having a
nominal value of 1 TL.
605.454.545 (six hundred and five million, four hundred and fifty four thousand, five hundred and forty five) of the shares are Group A shares
and 534.545.455 (five hundred and thirty four million, five hundred and forty five thousand, four hundred and fifty five) 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 presented by them.
The share distribution table of the Shareholders is presented as below.

Share 31 December 2019 Share 31 December 2018 (TL
Partners
(%) (TL Thousand) (%) Thousand)
Turkish Armed Forces Foundation
74,20 845.826 74,20 845.826
(TSKGV)
Quoted on BIST (Free float) 25,80 294.174 25,70 293.019
Axa Sigorta Anonim Şirketi1 -- 0,10 1.155
Paid-in capital 100 1.140.000 100 1.140.000
Inflation adjusted capital -- 1.238.621 -- 1.238.621
a. Members of the Board of Directors and Senior Executives

Within the framework of the provisions of the Company’s Articles of Association, the Board of Directors consists of total 9 members comprising
of 6 members to be elected from privileged shareholders or candidates nominated by group A and 3 independent members to be elected under
Capital Markets Board (CMB) regulations.

INFORMATION REGARDING THE MEMBERS OF THE BOARD OF DIRECTORS AS OF PUBLISHING DATE OF THE REPORT ARE AS FOLLOWS:
MEMBER OF THE BOARD OF DIRECTORS
Date of First
List No Name and Surname Position Positions In Other Company’s
Assignment
Member of the Board of Directors of IGG
ASELSAN Integrated Systems LLC, Member
Chairman / of the Board of Directors of SASAD, Deputy
1. Haluk GÖRGÜN Chairman of the Board of Directors of Saudi 15 March 2017
Executive Member / CEO
Arabian Defense and Electronics Company LLC,
Member of the Board of Directors of BARQ
Vice Chairman / Vice President at Presidency of Defence

2. Mustafa Murat ŞEKER Industries 15 May 2013
Executive Member
Professor at Özyeğin University Mechanical

3. Mehmet ARIK Independent Member Engineering Department 2 April 2018
Professor at İstanbul Medipol University

4. Ercümend ARVAS Independent Member Electrical Engineering Department, Member of 31 March 2016
Defense Industries Steering Committee
Deputy Minister of Republic of Turkey Ministry
of Industry and Technology, Member of
5. Mehmet Fatih KACIR Member Board of Trustees of Turkey Technology Team 26 April 2019
Foundation, Member of the Board of Directors
of E-Sports Federation
Deputy Minister of Ministry of Defense,
6. Alparslan KAVAKOĞLU Member Member of the Board of Directors of Turkish 26 April 2019
Parliamentarians Union
Member of the Board of Directors of Devrem
7. Salih KUL Member 84 Social Assistance and Solidarity Association 26 April 2019
(Treasurer)
Professor at İstanbul Technical University
Department of Aeronautical Engineering,
Member of the Board of Directors of SAHA,
8. İbrahim ÖZKOL Independent Member 15 March 2017
TUBİTAK Istanbul European Region Projects
Coordinator, ARC Center Director, ITU Aviation
Institute Founding President
Vice President at Presidency of Defence
Industries, Member of the Board of Directors
of TEKNOHAB Teknoloji Geliştirme Bölgesi
Yönetici A.Ş., Chairman of the Board of
9. Celal Sami TÜFEKCİ Member Directors of STM, Chairman of the Board of 2 April 2018
Directors of ULAK A.Ş., Chairman of the Board
of Ankara Aerospace and Aerospace Organized
Industrial Zone, Member of the Board of
Directors of METU MEMS
Member of the Board of Directors of Saudi
Arabian Defense and Electronics Company
Vice General Manager
10. Mehmet Fatih GÜÇLÜ (*) LLC, Member of Board of Directors of Bites 1 October 2019
(Financial Managemet)
Savunma Havacılık Ve Uzay Teknolojileri Yazılım
Elektronik Ticaret A.Ş.
(*)
Due to the retirement of our Company’s CFO, Okan TURAN, our Accounting and Financial Affairs Director Mehmet Fatih GÜÇLÜ is assigned as the CFO of ASELSAN starting from 01
October 2019 onwards.

MEMBER OF THE BOARD OF DIRECTORS

Date of First
List No Name and Surname Position Positions In Other Company’s
Assignment
11. Bayram GENÇCAN - 15 March 2017
(HBT Sector President)
Vice Chairman of ASELSAN Middle East Psc
LTD., Member of the Board of Directors of
ASELSAN Bilkent Mikro Nano A.Ş., Chairman
of the Board of Directors of ASELSAN Hasas
12. Sezai ELAGÖZ Optik A.Ş., Member of the Board of Directors 18 July 2018
(MGEO Sector President)
of TÜBİTAK R&D Support and Process
Management Services Group, Member of the
Board of Directors TÜYAR A.Ş.
(TÜYAR A.Ş.)
Member of the Board of Directors of IGG
ASELSAN Integrated Systems LLC, Member of
the Board of Directors of Kazakhstan ASELSAN
Engineering LLP, Member of the Board of
13. Mustafa KAVAL Directors of Defence And Aerospace Ministry 1 September 2014
(SST Sector President)
Exporters’ Association, Chairman of the Board
of the Directors of ASELSAN Konya Silah
Sistemleri Anonim Şirketi, Member of the Board
of Directors of BARQ
Vice Chairman of ASELSAN Bilkent Mikro Nano
14. Oğuz ŞENER A.Ş., Chairman of the Board of Managers of 1 September 2014
(REHİS Sector President)
Mikroelektronik
Member Of CoHE, Professor at KTO
Karatay Unıversity Mechanical Engineering
Department, Member of the Board of
Vice General Manager Directors of SSTEK A.Ş., Member of Presidency
15. Mehmet ÇELİK (Technology & Strategy of Science, Technology and Innovation 14 May 2017
Management) Technology Policy Board, Member of the
Board of the Directors of ASELSAN Konya Silah
Sistemleri Anonim Şirketi, Member of Board of
Directors of TR Eğitim Ve Teknoloji A.Ş.
Member of the Board of Managers of
ASELSANNET, Member of the Board of
Directors of ASELSAN Hassas Optik A.Ş.,
Vice General Manager Advisory Board Member of Özyeğin University
16. İbrahim BEKAR 12 February 2018
(UGES Sector President) Mechanical Engineering Department, Advisory
Board Member of Medipol University Faculty of
Engineering and Natural Sciences Department
Of Biomedical Engineering
Associate Professor In UAK, Industry And
Vice General Manager Technology, Member of the Board of Directors
17. Hakan KARATAŞ 2 July 2018
(Corporate Management) of Teknohab Teknoloji Geliştirme Bölgesi
Yönetici A.Ş.
Deputy Chairman of the Board of Directors Of
Ulak A.Ş., Chairman of ASELSAN Global Dış
18. Osman Devrim FİDANCI (Business Development and 1 February 2019
Ticaret Ve Pazarlama A.Ş., Member of the Board
Marketing)
of Directors of ASELSAN Middle East Psc LTD
19. Abdülkadir GÖKTAŞ Internal Audit President - 1 September 2014
Due to the retirement of our Company’s CFO, Okan TURAN, our Accounting and Financial Affairs Director Mehmet Fatih GÜÇLÜ is assigned as the CFO of ASELSAN starting from 01
(*)
October 2019 onwards.

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.
Entitled shareholders, members of the board of directors, senior executives and to their spouses as well as relatives up to second degree are not
authorized to perform transactions which may cause conflict of interest or competition with the Company and/or subsidiaries. There is not any
ban on trading for board members with the Company, which they performed on their own or on behalf of a third party. There is no operation
regarding the non-compete obligation by the members of the board.
The controls are carried out by the Internal Audit Presidency (IAP) and Audit Committee within the parent company in order to minimize the
substantial error risk on the financial statements of the Group. IAP and Audit Committee carry out their duties independent from each other but
within the guidance of common objectives and targets, with the aim of maintaining 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.
Changes of Members of the Board of Directors during the Period 1 January – 31 December 2019:
In the Ordinary General Assembly Meeting held on 26 April 2019, Haluk GÖRGÜN, Mustafa Murat ŞEKER, Mehmet Fatih KACIR, Alpaslan
KAVAKLIOĞLU, Salih KUL, Celal Sami TÜFEKCİ were elected as Member of Board of Directors until the next Generally Assembly Meeting
and İbrahim ÖZKOL, Mehmet ARIK and Ercümend ARVAS were elected as Independent Member of Board of Directors until the next General
Assembly Meeting.
Total Amount of the Financial Benefits Given To Senior Executives:
The total amount of the remuneration and similar benefits paid to the senior executives by the Company as for the period that ended on 31
December 2019 is TL 21.333 Thousand.
The annual gross total amount of the wages paid to the members of the Company’s Main Shareholder Board of Directors and the interests of private
health insurance are given below;
Total amount of 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 Group for the period ended by 31 December
2019 is TL 1.496 Thousand.
b. Information on Business Partnerships, Associates, Subsidiaries, Joint Ventures and Branches
The Company’s consolidated subsidiaries are ASELSAN Baku (“ASELSAN Baku”), Mikroelektronik Ar-Ge Tasarım ve Ticaret Ltd. Co. (“Mikro
AR-GE”), ASELSANNET Elektronik ve Haberleşme Sistemleri Sanayi Ticaret İnşaat ve Taahhüt Ltd. Co. (“ASELSANNET”), ASELSAN Malaysia Sdn.
Bhd. (“ASELSAN Malaysia”), Aselsan Konya Silah Sistemleri Anonim Şirketi (“ASELSAN Konya”), BITES Savunma Havacılık ve Uzay Teknolojileri
Yazılım A.Ş. (“BITES”), ASELSAN Global A.Ş. (“GLOBAL”) and ULAK Haberleşme A.Ş. (“ULAK”). They are collectively referred as the “Group” in
the accompanying notes. Three branch offices; Aselsan Elektronik Sanayi ve Ticaret Anonim Şirketi EP Co. (“ASELSAN South Africa”), ASELSAN
(“ASELSAN Kıbrıs”) located in South Africa, Macedonia and Turkish Republic of Northern Cyprus (“KKTC”), respectively.
The Company has three branch offices; Aselsan Elektronik Sanayi ve Ticaret Anonim Şirketi EP Co. (“ASELSAN South Africa”), ASELSAN
(“ASELSAN Kıbrıs”) located in South Africa, Macedonia and Turkish Republic of Northern Cyprus (“KKTC”), respectively. The branches are
included in the consolidated financial statements.
ASELSAN Hassas Optik Sanayi ve Ticaret A.Ş. (“ASELSAN Optik”), ASELSAN Bilkent Mikro Nano Teknolojileri Sanayi ve Ticaret A.Ş. (“ASELSAN
Bilkent”), IGG ASELSAN Integrated Systems LLC (“IGG ASELSAN”), Kazakhstan ASELSAN Engineering LLP (“ASELSAN Kazakhstan”), ASELSAN
Middle East PSC LTD (“ASELSAN Jordan”), Saudi Arabian Defense Electronics Corporation LLC (“SADEC LLC”), TÜYAR Mikroelektronik Sanayi ve
Ticaret A.Ş. (“TÜYAR A.Ş.”), Teknohab Teknoloji Geliştirme Bölgesi Yönetici A.Ş. (“TEKNOHAB”), and EHSİM Elektronik Harp Sistemleri Müh. Tic.
A.Ş.(“EHSİM”) are consolidated by the equity method.

DOMESTIC ASSOCIATES AND SUBSIDIARIES
Domestic and Foreign subsidiaries information by maps is shown below;
1
2
6
14 5 8
13 9 7
12 1110
4
3
1- MIKROELEKTRONIK 6- ROKETSAN A.Ş. 11-ASELSAN BİLKENT MİKRO NANO

Ownership: 85% Ownership: 15% Ownership: 50%
Partner: İTÜ ETA Partner: TAFF Partner: Bilkent University
Participation: 2010 Founded: 1988 Founded: 2014
(Founded in 2004) Assets: $1,2 B* Assets: $31,9 million
Assets: $6,2 million
7- ASELSAN HASSAS OPTİK A.Ş. 12- TEKNOHAB A.Ş.
2- TÜYAR A.Ş. Ownership: 50% Ownership: 30%
Ownership: 51% Partner: Sivas Optik Partner: HAB, TUSAŞ, Gazi University
Partner: TÜBİTAK, SSM Founded: 2014 Founded: 2018
Founded: 2017 Assets: $26,1 million Assets: $3,3 million
Assets: $2,7 million
8-ULAK A.Ş. 13- TR EĞİTİM VE TEKNOLOJİ A.Ş.
3- ASELSAN KONYA SİLAH SİST. A.Ş. Ownership: 51% Ownership: 50%
Ownership: 51% Partner: SSTEK A.Ş. Partner: TUSAŞ
Partner: Konya Defence Industry Founded: 2017 Participation: 2019
Founded: 2018 Assets: $16,9 million (Founded in 2018)
Assets: $17,8 million Assets: $0,20 million
9- ASELSANNET
4- ASPİLSAN A.Ş. Ownership: 100% 14- EHSİM A.Ş.
Ownership: 1% Founded in 2004 Ownership: 51%
Partner: TSKGV Assets: $236 million Partner: HAVELSAN, SSTEK
Founded: 1981 Participation: 2019
Assets: $10,3 million (*) 10- BİTES A.Ş. Founded in 1998
Ownership: 51% Assets: $14,4 million
5- ASELSAN GLOBAL A.Ş. Partner: Uğur Çoşkun
Ownership: 100% Participation: 2019
Founded in 2019 Founded: 2001
Assets: $9 K Assets: $2,9 million
(*)
Assets are given as of 31.12.2019

FOREIGN ASSOCIATES AND SUBSIDIARIES
3
1
2
4
5
6 8
9
1- MAKEMACEDONIA BRANCH 4- ASELSAN MIDDLE EAST ( JORDAN) 7- SOUTH AFRICA BRANCH

Ownership: 100% Ownership: 49% Ownership: 100%
Foundation: 2014 Partner: KADDB Investment Group Partner: KADDB Investment Group
Assets: $3,8 million Foundation: 2012 Foundation: 2012
Assets: $19,7 million Assets: $1,4 million
2- ASELSAN BAKU (AZERJAIBAN)
Ownership: 100% 5-BARQ QSTP LLC (QATAR) 8 - GG ASELSAN INTEGRATED SYSTEMS
Foundation: 1998 Ownership: 48% (UAE)
Assets: $1,7 million Partner: Barzan Holding, Ownership: 49%
Foundation: 2018 Partner: IGG
3- KAZAKHSTAN ASELSAN ENGINEERING Assets: $0,3 million Foundation: 2011
(KAZAKHSTAN) Assets: $2,1 million
Ownership: 49% 6- SADEC (SAUDI ARABIA)
Partner: Kazakhstan Engineering Ownership: 50% 9- ASELSAN MALAYSIA
Foundation: 2011 Partner: TAQNIA DST
Assets: $37,9 million Foundation: 2016
Assets: $1,1 million*
Assets are given as of 31.12.2019

The business partnerships and affiliates of the Group recorded as financial investments and investments valued by equity method, with their
participation ratios and amounts are as follows;
Share 31 December 2019

Company Main Activity Area
(%) (TL Thousand)
All kinds of missiles, rockets, guided ammunition and their launch

systems and propulsion systems and rocket fuels, guidance and
ROKETSAN – Roket Sanayi
control systems, algorithms and softwares related to these systems, 14,9 987.560
ve Ticaret A.Ş.
warheads and other parts of these systems, all kinds of plugs and all
kinds of ballistic protection (armor) system
Manufacture, sale and technical service of electronic and electro-

ASELSAN Kazakhstan 49 45.613
optical devices and systems
ASELSAN Jordan Marketing sales and joint production of group products 49 17.018
Manufacture and sale of radar, electronic warfare and electrooptic

SADEC LLC 50 2.043
products
Manufacture of micro and nano-sized devices containing

ASELSAN Bilkent 50 14.831
semiconductors and similar technological materials
ASELSAN Optik Precision optic technology 50 14.180
Production, integration, sales and technical service of high

IGG ASELSAN 49 8.803
technology products
Production of micro and nano-sized devices containing semi-

TÜYAR A.Ş. 51 8.177
conductor and similar technological materials
ASPİLSAN Enerji Sanayi ve Manufacture and sale of Ni-Cd, Ni-MH, Li-Ion battery / battery
1 904
Ticaret A.Ş. blocks and aircraft battery systems
Command and control systems, thermal and night vision camera,

BARQ QSTP LLC 48 834
crypto, remote-controlled weapon systems
To create investment opportunities in technology intensive areas,

provide job opportunities to researchers and skilled people, help
TEKNOHAB 30 2.306
technology transfers and facilitate foreign capital to enter our
country that will enable high technology
EHSİM Electronic Warfare and Tactical Command Systems 50 6.964
Realizing Human Resources studies, Consultancy with respect

to HR studies, acreditation services and trainings for every level,
TR Eğitim ve Teknolojileri 50 1.000
educational, cultural, art, sports, fair organizations and digital
marketing operations.

4. MAIN FACTORS THAT AFFECT THE PERFORMANCE, INVESTMENT AND DIVIDEND POLICY OF THE COMPANY
The Company carries on its business interests mainly in defense industry as well as in non-defence industry.
According to the latest data, world defense expenditures has increased by 2,6% to 1,8 Trillion USD and the ratio of expenditures to GDP has
decreased to 2,1%, the lowest level of last 4 years. The top five countries that spent 60% of world total in 2018 were listed as the USA, China,
Saudi Arabia, India, and France. In 2018, US defense expenditures increased for the first time in last 7 years reaching USD 649 Billion, while China
increased by 5% to USD 250 billion, Saudi Arabia decreased by 7% to USD 68 Billion, India increased by 3% to USD 67 Billon and France increased
by 1% to USD 64 Billion.
Regionally, while there is growth in America, Europe and Asia; it is observed that there is a contraction in Africa and Middle East regions.
As of 2018, Turkey’s annual defense expenditures increased by 24% to 19 Billion USD compared to last year. In 2018, Turkey listed as the 5th
fastest growing country in the world in terms of defense spending. The ratio of defense spending to GDP tended to increase steadily over the
years, reaching the highest level of 9 years with a rate of 2.5%.
As of 2018, the defense and aviation industry turnover, including the Company, was realized as 8,8 billion USD with an increase of 31% annually,
and the industry’s exports reached 2 billion USD with an increase of 17%.
Due to the industry’s nature, defense projects spread over years, furthermore a system project lasts approximately 4 to 5 years from its start to
its delivery. As of 31 December 2019 long term plans which have been accordingly signed as contracts spread over years amounts to USD 9,7
Billion. The determination of target regions/countries and focusing on these markets for marketing and direct sales as well as engaging in joint
productions, transfer of technology to/from international platform producers and strategic initiatives for sales to third countries are concurrent
to our sustainable growth objectives. Our structure coincides with our objective to operate in civilian electronic fields which require high
technology.
The Company’s profit distribution policy is posted on www.aselsan.com.tr website under Investor Relations/ Corporate Governance/Policies.
According to the policy, at least 10% of the net profit is planning to be distributed.
• At the Ordinary General Assembly Meeting held in 26 April 2019; in accordance with Article 519/(1) of the Turkish Commercial Code, TL
91.456.032,50 to be allocated as General Legal Reserves from the remaining distributable profit obtained after subtracting taxes and statutory
obligation from Company’s operating profit in 2018. 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 174.000.000 (Kuruş 15,26 per
share of TL 1 and 15,26 % on the basis of the capital) (net profit TL 147.900.000 – Kuruş 12,97 per share of TL 1 and 12,97 % on the basis of the
capital) as in the form of cash,
• In accordance with Article 519/(2) of the Turkish Commercial Code, TL 11.700.000 to be allocated as General Legal Reserves,
• Remaining profit is to be allocated as Extraordinary Legal Reserves and distribution of the dividends to the shareholders are distributed in three
equal installments on the dates of 19 June 2019, 18 September 2019 and 18 December 2019, were decided.
The first installment payment of the dividends was made on 19 June 2019, the second installment payment was made on 18 September 2019 and
the third installment payment was made on 18 December 2019.
5. ENTERPRISE RISK MANAGEMENT
ASELSAN’s Enterprise Risk Management Policy aims; to take proper actions against uncertainties that threaten the existence of the Company and
to protect corporate identity and stakeholders’ interest at all conditions. Risk management is an integrated element of Corporate Management.
The information gathered within the scope of risk management activities in ASELSAN is integrated into decision making mechanisms.
The “top-down” and “bottom-up” approach is being applied into Enterprise Risk Management activities together. Risks, which are significant
enough to affect ASELSAN’s achievement of its targets, are identified, evaluated, monitored and reported along with the risk responses and
precautions to be taken. At ASELSAN; The Enterprise Risk Management process is regularly reviewed and improved. ASELSAN’s employees and
business processes are at the center of the Enterprise Risk Management System.
At ASELSAN, enterprise risks are followed under four main categories.

a. Main Risk Categories
Strategic Risks: Risks that may prevent ASELSAN from reaching its targets in short, medium or long terms are classified under this heading. Risks
under this heading include factors such as; growth and continuity, changing customer expectations, technological changes and market share.
While ASELSAN manages its strategic risks effectively; it aims to increase its backlog, increase exports and to take part in sustainable works. In
order to increase ASELSAN’s market share and offer new products / services, ASELSAN seizes company mergers / acquisition opportunities both
at home and abroad. ASELSAN also conducts business development activities successfully. ASELSAN increases its research and development
activities in order to meet changing customer expectations and changes in technology, and realizes the necessary infrastructure and
technological investments. ASELSAN diversifies the geographical regions in sales, customer portfolio and the sectors in order to maintain its
growth and continuity in the medium and long term.
Operational Risks: It is defined as the risks arising from errors and negligence that may occur while performing the operational activities of the
company. Risks under this section include factors such as; production, supply chain, human resources, information technologies, natural disaster
and terrorist attacks.
In order to ensure the continuity of the processes, in-house directives and functors have been prepared and necessary updates are being made
when needed. Within the scope of the Internal Audit plan and work schedule prepared in ASELSAN, business processes are being audited and
process improvements are made in line with the audit outputs.
Quality is not compromised in production processes involving both internal operations and suppliers; subcontractor and supplier development
activities are carried on unabated. In terms of managing Human Resources and increasing employee motivation; activities were made with
the participation of employees from every level and process improvements were made. Security policies are sustained at the highest level in
Information Technology applications. In this area, internal and external audits are carried out periodically and precautions are taken against
probable cyber-attacks and in the field of Information Technologies, business continuity in-house is provided. Regarding risks, such as natural
disasters, terrorist attacks, necessary precautions are taken, - primarily insurances have been made, and drills are carried out.
Financial Risks: It refers to the risks arising from the financial structure and financial preferences of the company.
Exchange rate, liquidity and interest rate risks are some risks under this heading.
The exchange rate risk, which is any kind of change that may occur in assets and / or liabilities as a result of exchange rate fluctuations in the
future, ASELSAN aims to minimize the effect of exchange rate fluctuations by keeping the long and short foreign exchange position at a minimum
level. The balance sheet methods have been used in managing the exchange rate risk. Implementations such as; making use of foreign exchange
denominated loans in line with the company’s export volume, matching the contract currency with the currency of the costs of the project, and
signing the subcontractor contracts in line with the main contract currency are used.
ASELSAN eliminates the liquidity risk, which is known as the risk arising from default and inability to fund the assets, it monitors forecasted
and actual cash flows regularly and ensures the continuity of adequate funds and credit lines by matching the maturity of financial assets and
liabilities. In order to manage the interest rate risk arising from changes in assets and / or liabilities as a result of fluctuations in interest rates in the
future, it conducts transactions with fixed interest rates and uses financial derivative instruments when necessary.
Compliance Risks: It refers to the risks associated with the Company’s financial losses and / or loss of reputation as a result of the company’s
activities or the attitudes and behaviors of the company employees that are not in compliance with the legislation, regulations and standards.
While conducting its activities, ASELSAN closely follows national and international standards with the best practices in the sector, and
compliance with legislation and regulations is ensured at the highest level. In addition, by Internal Audit Presidency; the effectiveness of controls,
compliance with legislation and ASELSAN regulations, compliance with ethical principles and controls to eliminate risks are being evaluated.
b. Early Detection and Management of Risk Committee Works
The Early Detection and Management of Risk Committee, which consists of the members of the Board of Directors, has been operating at
ASELSAN since 2012 in order to ensure early detection of risks that may endanger the existence, development and continuity of the Company,
to take necessary measures related to the identified risks and to manage the risks. The Chairman of the Committee is an Independent Board
Member.
Committee; has conducted 6 meetings in 2019, in order to follow the works on early detection and management of risks and to make evaluations
about this issue. The reports containing the works of the Committee were being submitted to the Board of Directors periodically.
Committee; carries out its own activities in full compliance with the regulations of the Capital Markets Board and all the related legislation,
especially article 378 of the Turkish Commercial Code No. 6102. In addition, the Early Detection of Risk System and Committee, established by
ASELSAN, is subjected to independent audits annually and the Auditor Report stating that the activities performed is sufficient, is submitted to
the Board of Directors.

6. FINANCIAL INFORMATION OF THE COMPANY

The forecasts under the normal conditions regarding the Group’s consolidated financial results for the 2019 year are presented below;
Financial Targets 2020 Financial Targets 2020
(Ratio/Amount)
Consolidated Revenue Growth (TL) 40% - 50%
EBITDA Margin (Consolidated and Adjusted without Foreign Exchange Rate Differences) 20% - 22%
Consolidated Capital Expenditures 1.500 Million TL
These expectations are based on the yearly average of USD/TL parity to be 6,18 and EURO/TL parity to be 6,98.
The Company, which has been in the most prestigious Defense Industry list since 2008, “Defense News Top 100”, published by “Defense News”
magazine, aims to increase its ranking in the list in following years. In 2018, the Company raised its ranking to 52nd in the list of 2019 with a USD
1,79 Million defense sales.
44th Ordinary General Assembly Meeting held on 26 April 2019.
In order to achieve the sustainable growth:

• The quality and technological perspectives of the cooperation formed with the universities have been increased.
• ASELSAN employees are provided with the opportunity to study in the work environment with the initiation of ASELSAN Academy
Postgraduate Training Program. The program serves the purpose of having the necessary technologies and developing existing technologies.
• The efforts to form an eco-system with the sub-industry companies and SME’s have continued.
• Company is continuing its operations in civil electronic areas which reguires high technology.
• Inorganic growth will be also evaluated as well as organic growth.
a. Financial Resources of the Company
The most substantial financial resources of the Company comprise the advance and interim payments taken within the scope of the contracts
signed and profits generated by the main activities.
During 1 January - 31 December 2019 period, the cash requirements were met with the available cash, cash inflows from other operations and
use of Türk Eximbank export discounted foreign currency loan due to low cost. Within the scope of the Eximbank Loan Program, during 1 January
- 31 December 2019 period, “Discounted Foreign Currency Loan” was used as USD 160 Million with 240-360 days of maturity and EUR 167,2
Million with 240-360 days of maturity. Moreover, from Commercial Banks, USD 40 Million and EUR 75 Million worth of loan has been used. In
total, as of 31 December 2019, there is a loan balance equivalent to USD 359 Million consisting of USD 102 Million from Commercial Banks and
USD 257 Million from Eximbank.
In the period ended on 31 March 2019, the remaining balance of loan obtained from Defense Industry Support Fund (SSDF) was closed by
offsetting from receivables.
Planned Measures To Improve the Financial Structure of the Company
As for the annual budgets and implementations for the period 2018-2020, the Group has adopted the principles as the basis to take care of
savings in all kinds of expenditures, to follow up the advances and receivables closely, to pay attention to the proportion of the term and currency
in purchasing and sales agreements and the risk status of the domestic/foreign suppliers and sub-contractors.
b. Research and Development Activities
The Group, as a leading defense industry establishment, develops advanced technology system solutions on land, air, naval and aerospace
platforms, places great importance to Research and Development activities and technological gains since it was founded.
By following up on all kinds of technological developments pertaining to land, air, naval and aerospace platform product/system technologies,
the Company not only applies technology but also designs, develops and produces product/system technologies in order to share or sell with/to
national and international collaborations.
Projects are striving at maximum level in order to benefit from the technological opportunities existing in the country aiming to increase the
national contribution share. For this purpose, cooperation is made with universities and various R&D organizations and importance is given to
the use of local suppliers and subcontractors.
As for the projects carried out within the Group, Research and Development center application pursuant to the Law regarding the support
of Research and Development activities numbered 5746 is being implemented. As for non-public R&D projects, the approval of TEYDEB
(Technology and Innovation Support Programs Directorate) and ARDEB (Research Support Programs Presidency) are received and supported by
the institutions.

Within the Company, there are 6 Research and Development centers within the scope of Defense System Technologies (SST), Radar Electronic
Warfare and Intelligence Systems (REHİS), Microelectronics, Guidance and Electro-optics (MGEO), Communication and Information
Technologies (HBT), Transportation, Security, Energy & Automation Systems (UGES) Vice Presidencies as well as ASELSAN Research Center
of Vice Presidency of Technology and Strategy Management. Currently, 3.744 staff are employed at the Group’s Research and Development
centers.
The Number of Personnel Employed at R&D Centers (3.744)
HBT 462
MGEO 1.165
SST 237
REHİS 981
UGES 371
GY 28
The Company also carries on its activities in Teknokent facility within Middle East Technical University and İstanbul Technology Development
Area Teknopark within the scope of the Law numbered 4691 on Technology Development Regions.1 Group employed 672 staff within this region.
The Number of Personnel Employed at Technopark (672)
ODTÜ Teknokent 296
Teknopark İvedik 207
Teknopark Hacettepe 71
Teknopark İstanbul 70
İTÜ Arı Teknopark 28
1
The company has started to operate in Teknopark Ankara for engineering purposes as of 1 April 2019.

c. Progress in Investments and Degree of Incentive Utilization
i. Investments
Directing the Company’s resources to profitable, high value added fields, 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, particularly
Turkish Armed Forces. The investments within the Company are carried out after detailed consideration of the technological plans, strategic
plans and project requirements.
During the current period, the investments, which will meet the needs of substructure and equipment in order to be used in research and
development project have been sustained in compliance with the investment scheme in accordance with the policy of efficient use of resource.
ii. Incentives
Income tax withholding incentive, insurance premium support, stamp tax exemption and Research and Development incentive are utilized
within the scope of the Law numbered 5746. In accordance to the Law regarding the Incentive of Research and Development Activities numbered
6676 published on Official Gazettes numbered 29636 on 26 February 2016 and The Law Regarding the Amendments on Delegated Legislation,
the content of the law and incentives has been broadened and additional exceptions has been given. Income tax withholding incentive,
insurance premium support and stamp tax exemption is utilized by being calculated over the salaries of the Research and Development
personnel and not being paid to the relevant institution and the Research and Development discount is utilized by means of applying a discount
on the corporate tax return. Aforesaid law is valid until the date of 31 December 2023.
Within the scope of the Teknokent Law numbered 4691, incentive on withholding income tax, insurance premium support and stamp tax
exemption is applied. These are utilized by making calculations on Research and Development 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 2023.
Between the period 1 January – 31 December 2019 because of having Research and Development centers, TL 185.131 Thousand within
the scope of income tax withholding incentive, promotion of insurance premium, stamp duty exception; as a result of being active at ODTÜ
Teknokent, İstanbul Technology Development Area Technopark and ITU Arı Technopark TL 36.750 Thousand incentives have been used.
Within the scope of the Research and Development Law No 5746 and Teknokent Law No 4691, TL 832.335 Thousand Corporate Tax advantage
has been gained as of 1 January - 31 December 2019 period.
At the periods when Group’s Research and Development expenses, which is subject of Research and Development discount, is higher than the
principal amount of Research and Development discount which is indicated at corporate tax return, Corporate Tax ratio is 22% for the years 2018
- 2020 and 20% for the next years of distinction amount is evaluated as deferred tax income at financial tables.
The 1501 Industrial Research and Development Projects Support Programme has been established in order to encourage the Research and
Development operations of the companies creating added values at company level and to contribute to the enhancement of the Research
and Development ability of the Turkish industry by this means. Projects within the scope of 1511-Prioritized fields’ research technologies
development and innovation programme came into force as of 2013. The support process of the projects have been initiated as of July 2010 by
1509 EUREKA-International Industrial Research and Development Projects Support Program where market oriented projects for developing
products and processes to be commercialized in short term are supported the Group have benefited from the incentives. In addition to these,
TÜBİTAK 1003 Research Support programs were implemented within the scope of the projects entered into implementation in 2019 and the
Company benefited from the incentives (TL 513 Thousand).
1505 - Within the scope of 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, 2 Projects are ongoing.
Market research, fair, and library support provided by the Support and Price Stabilization Fundy were obtained (TL 510 Thousand).
The 1007 Public Institutions Research and Development Project Support Program has been formed in order to meet the requirements of the
Public Institutions with Research and Development or to support the projects aimed at solving their problems. In scope of this support 12
Research and Development projects are still ongoing.
2232 The International Fellowship for Outstanding Researchers Program aims to support qualified researchers with leading scientific and/or
technological achievements and international work experience to conduct their research in leading academic, industrial or public institutions to
contribute in areas that are strategic value to Turkey. 1 personnel is assigned to this program.
Within the context of “Taxes and Funds Exemption Certificate” received from Republic of Turkey Ministry of Trade in order to increase exports and
gain competitiveness in international markets, stamp duty and fee exemptions are used in export sales and deliveries and foreign exchange gain
activities. (TL 88.426 Thousand)

Within the Decision Regarding the Governmental Grant in Investments, there are 5 Investment Incentive Certificates taken from the Turkish
Republic Prime Ministry for Economy Treasury General Directorate of Incentives and Implementation. With such incentive certificates, VAT
exemption and customs tax exclusion are utilized (TL 36.644 Thousand).
VAT exemption is applied in domestic and foreign purchases and customs tax exemption is used in foreign purchases (TL 336.990 Thousand).
The sources, amounts and types of the incentives utilized are summarized in the table below collectively;
31 December 2019
The Source of Incentives Type of Advantage
Amount (TL Thousand)
Research and Development Promotion
Law numbered 5746 and Teknopark Law numbered Corporate Income Tax 832.335
4691
VAT Law numbered 3065 VAT Return 336.990
Research and Development Promotion
Income tax withholding, Insurance Premium, Stamp Tax 185.131
Law numbered 5746
Export Promotion Practices
Stamp Duty Exemptions 88.426
(Taxes and Funds Exemption Certificate)
Teknopark Law numbered 4691 Income tax withholding, Insurance Premium, Stamp Tax 36.750
VAT and Customs
Ministry of Industry Incentive 36.644
Duty Exemptions
Support Programme
Cash Support 513
(TUBITAK 1003, 1501, 1511, 1509)
The Support and Price Stabilization Fund Cash Support 510
TOTAL 1.517.299
d. Production and Capacity
The Company can conduct complicated projects through its own integrated system architecture by means of knowledge, highly developed R&D
infrastructure, well-equipped production lines and facilities.
Works in order to perform distinctive business development and marketing activities in global markets to increase efficiency in international
markets and exports have been continued.
Revenue
31 December 2019 31 December 2018 Δ%
(TL Thousand)
Domestic sales 11.438.768 8.119.561 41%
Exports 1.573.783 888.955 77%
TOTAL 13.012.551 9.008.516 44%
Substantial part of production has been realized based on orders. All related processes are being managed efficiently since product
requirements, quantities and prices are different.
e. Revenue
The Company carries out its operations in the basic fields of: “Communication and Information Technologies”, “Defense System Technologies”,
“Radar, Electronic Warfare and Intelligence Systems”, “Microelectronics Guidance and Electro-Optics” and “Transportation, Security, Energy and
Automation”.
According to the relevant sales agreement terms and conditions, the Company’s revenue from projects contains 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’s realized net sales during the period 1 January - 31 December 2019, TL 11.438.768 Thousand of this
realized as domestic sales and TL 1.573.768 Thousand of it realized as foreign sales.

Sales (TL Thousand) 13.012.551
Domestic 11.438.768
Abroad 1.573.783
December 2019 13.012.551
f. Financial Ratios
As of 31 December 2019, the 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 Markets Board, Gross Margin is 26%, Operating Profit Margin (EBIT) is 20%,
Adjusted EBITDA Margin is 22% and Net Profit Margin is 26%. At the end of the 4rd Quarter, Return on Equity (ROE) is 28%, Average Net Working
Capital / Net Sales is 38% and Return on Assets (ROA) is 15%.
Financial Ratios
Consolidated Financial Position
Current Ratio 1,80 2,48
Liquidity Ratio 1,00 1,36
Short Term Current Liabilities / Total Financial Liabilities 99% 97%
Total Financial Liabilities / Total Assets 9% 4%
Financial Ratios
Consolidated Income Statement
Gross Profit Margin 26% 25%
Operating Profit Margin (EBIT) 20% 19%
Adjusted EBITDA Margin (*) 22% 21%
Net Profit Margin 26% 26%
Return On Equity (ROE) 28% 31%
Net Working Capital / Net Sales 38% 51%
Return on Assets (ROA) 15% 15%
The liabilities of the Group are mainly consist of the short and long term order advances received.
(*)
General administrative expenses, marketing expenses and research and development expenses are substracted from and current period’s depreciation and amortization expenses are
added to the gross profit in calculation of EBITDA value. Other operating income and other operating expenses are not included in the calculation.
7. CHANGES IN THE LEGISLATION WHICH WOULD HAVE SIGNIFICANT IMPACT ON THE ACTIVITIES OF THE COMPANY
There are no change made in the Legislation within the reporting period.
8. COMPLIANCE REPORT ON CORPORATE GOVERNANCE PRINCIPLES

Corporate Governance Updates Information Note has been updated on www.kap.org.tr with respect to the 44th Ordinary General Assembly held
in 26 April 2019. Corporate Governance Updates Information Note and Compliance Report will be announced in the year-end BOD Report.

9. INFORMATION REGARDING THE LAWSUITS OF THE GROUP

The lawsuits and execution proceedings filed by or against the Group as of 31 December 2019 are summarized below;
31 December 2019
Description
(TL Thousand)
Ongoing lawsuits filed by the Group 70.374
Execution proceedings carried on by the Group 193.568
Lawsuits proceedings carried against the Group 24.501
Execution proceedings carried against the Group 485
Lawsuits finalized in favor of the Group within the period 1.975
Lawsuits finalized against the Group within the period 1.505
There has not been any final judicial decision against the Group due to the violation of employee rights or the responsibility related with work
accidents within 2019.
10, INFORMATION REGARDING THE TRANSACTIONS MADE WITHIN THE REPORTING PERIOD
i. Changes in the Articles of Association
There are no changes in the Articles of Association within the reporting period.
ii. Collective Agreement Implementations, Rights and Benefits Provided to the Personnel and Workers
The Group recruited a total number of 1.397 people (322 with fixed term contract) as the personnel including fixed-term contracted personnel,
disabled and terror-stricken personnel during the period 1 January - 31 December 2019 and the number of people quit for the same period is 355
(15 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 2019 is 6.797.
iii. 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
There has not been such an event within the period.
iv. 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 iii 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
There has not been any material event that affects the Company’s financial statements within the period.
v. Information Regarding the Donations and Social Responsibility

Within the period of 1 January 2019 - 31 December 2019, the donations made by the Group are as below.
31 December 2019
Foundation
(Thousand TL)
ASİL Derneği 350
Jandarma Asayiş Vakfı 200
TOTAL 550

None.

APPENDIX-1
CHAPTER I - 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 8,77 out of 10 as the result of the corporate
rating studies carried out by SAHA Corporate Governance and Credit Rating Services Inc (SAHA) first in 2012 and therefore was included in
the Borsa İstanbul Corporate Governance Index. According to the report of SAHA, which was published on 12.12.2019, ASELSAN’s corporate
governance rating grade, which was 9,20 in 2018, was updated as 9,29 out of 10 points.
Corporate governance rating grade shows to what extent the companies comply with the corporate governance principles set out by the CMB. 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. Within this context, the methodology that is based on the “Corporate Governance Principles”
published by CMB in January 2014, was used in the rating made by SAHA.
As a result of the activities of ASELSAN within the concept of corporate governance throughout 2019, ASELSAN’s corporate governance rating was
updated to 9,29 over 10 on 12.12.2019 by SAHA A.Ş.
The ratings of 2018 and 2019 and the subtitles are given below:
2018 Rating Distribution 2019 Rating Distribution
Shareholders: 83,63/ 100 Shareholders: 89,57/ 100
Public Disclosure and Transparency: 98,70 / 100 Public Disclosure and Transparency: 99,01 / 100
Stakeholders: 98,09 / 100 Stakeholders: 98,13 / 100
Board of Directors: 90,70 / 100 Board of Directors: 88,67 / 100
Average 9,20 / 10,00 Average 9,29 / 10,00
ASELSAN Corporate Governance Rating Reports published by SAHA can be accessed at the company website: www.aselsan.com.tr
ASELSAN is in full compliance with all the mandatory principles of Corporate Governance Principles. There are no conflicts of interest arising
because of the arbitrary principles where compliance has not been 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.

• No recognition of minority rights to those who own less than twentieth of the capital indicated in the Articles of Association,
• Group A shares having the privileges on Board nominations and the transfer of those shares being subject to permission,
• The fact that although the mechanisms enabling the participation of stakeholders in the management of the company are built, they are not
included in the Articles of Association.
• Non-existence of a judgement in the Articles of Association; declaring that shareholders may individually demand special audit of certain
incidents from the General Assembly even if it is not on the meeting agenda, under the condition that the right to ask to obtain information and
to examine has been used before and if the exercise of shareholders rights is necessary,
• The article “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” in the Articles of Association of the
Company,
• Non-existence of a female member in the Board of Directors, the fact that a target, where the ratio of the female members should not be less than
25%, was not set and that there is not a written company policy on that issue,
• The Chairman of the Board and the Chief Executive Officer being the same person and the lack of material event disclosure through Public
Disclosure Platform (PDP) explaining the situation with the reasoning behind it.
• Not disclosing the renumeration of executive managers or the benefits provided to them per each individual.
With the resolution of CMB, numbered 2/49 and dated 10.01.2019, it has been decided that companies shall make their Corporate Governance
Compliance Reporting, which is made in accordance with the Corporate Governance Communiqué numbered II-17.1, by filling the Corporate
Governance Compliance Report and Corporate Management Information Form templates via the PDP. In accordance with this decision, our
Company filled the relevant templates in PDP and added the templates to the end of the report as Appendix-1.
Corporate Governance Committee will carry on the necessary efforts in order to achieve full compliance with Corporate Governance Principles.
Prof. Dr. Ercümend ARVAS Dr. Celal Sami TÜFEKCİ

Independent Member of Board of Directors Member of Board of Directors
Corporate Governance Committee Chairman Member of Corporate Governance Committee
Salih KUL Pınar ÇELEBİ

Member of Board of Directors Member of Corporate
Member of Corporate Governance Committee Governance Committee

CHAPTER I - SHAREHOLDERS
2.1. Investor Relations Department
The information regarding Investor Relations Department responsible for the relations with shareholders is given below.
Mehmet Fatih GÜÇLÜ : Chief Financial Officer/Vice President

Nuh YILMAZ : Finance Director
Pınar ÇELEBİ : Investor Relations and Enterprise Risk Manager
Başak YÜCEKAYALI : Investor Relations Department/Senior Specialist
Gülru SELÇUK FİLİZ : Investor Relations Department/Specialist
Contact Information
Phone: 0850 828 1 828
e-mail: [email protected]
Investor Relations Department has submitted the report regarding the tasks carried during 2018, to Board of Directors on 17.01.2019.
Pınar ÇELEBİ, Investor Relations Manager, and Başak YÜCEKAYALI, Investor Relations Senior Specialist, have Capital Markets Transactions Level-3
and Corporate Governance Rating Expertise Licenses.
Main operations carried out by Investor Relations Department during 2019 are as follows:
• Maintenance of the 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 confidential, trade secret and
which was not disclosed to public,
• Ensuring the 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 Committee,
• Operation of transactions regarding dividend distribution and tasks regarding 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 making sure they follow the confidentiality rules until financial and operational results are disclosed to public,
• Coordination of preparation and publishing of Sustainability Report in a more professional format compared to previous years with consultancy,
• Performing the tasks regarding the compensation of the beneficiaries with the capital market instruments, the property of which has been
lapsed to the Investor Compensation Center (ICC) and have become valid again,
• Carry out the studies on the completion of the Investor Relations section on the new ASELSAN website which is prepared and launched with
external support,
• Complete the setup process of Voice Response System.
In 2019 a total of 87 meetings were held with corporate investors, where 33 of them were one-on-one interviews held in investor conferences
and roadshows which are organized specially for our company, 32 of them were held by visiting corporate investors and portfolio management
companies, 11 of them were teleconference calls and 11 of them were meetings held in ASELSAN facilities. In addition to the meetings with
corporate investors held by means of investor conferences and teleconferences, approximately 800 retail shareholders’ questions regarding
secondary public offering, fluctuations in the stock price, exercising shareholder rights, material event disclosures made, financial tables, etc. were
answered either written or verbally in 2019.
The information and explanations, which may affect the exercise of shareholders rights, are provided in the company website.
2.2. Exercising of Information Acquisition Rights of the Shareholders
Investor Relations Department has taken care of every written and verbal inquiry of all shareholders in 2019 with the most accurate and fastest way.
It has paid attention to respond to all the information demands of shareholders with complete and comprehensible responses.

Investor Relations Department has been using Turkish and English website www.aselsan.com.tr actively in order to inform ASELSAN’s investors on
a timely and accurate basis and has been updating the information given on the web constantly. The electronic platform on our website is being
effectively used regarding the issues that may affect exercising of the shareholders rights. The material event disclosures made through Public
Disclosure Platform incorporated under Borsa İstanbul are being disclosed both in Turkish and in English from 26.10.2015 onwards, the material
event disclosure and other notifications are being published on our corporate website in Turkish and in English on the same day. In general, any
changes occurred in the Company structure are immediately announced on our website and the investor presentations are constantly updated.
Information on capital increases and dividend distribution is also submitted to our investors’ knowledge on the website. In addition, notifications
regarding the attendance of shareholders to the General Assembly and electronic general assembly principles within the context of the new Turkish
Code of Commerce (TCC) are being made.
Full compliance of both Turkish and English chapters on “Investor Relations” of our company’s website as per the regulations was achieved.
Within the context of regulations of CMB, in 2019;

• General Assembly documents within legal deadlines,
• General Assembly minutes and participants list,
• 2018 Annual Report,
• The reports for the 1st quarter, 2ns quarter’ and 3rd quarter period for 2019,
• The investor presentations which are updated every 3 months,
• Disclosure of material events made in 2019,
• Our Company’s consolidated financial statements and basic performance indicators for the last 5 years along with the Financial Report,
• Earnings Release has beed published,
• Investor Calendar updates,
• The updated 5 year strategic plan summary
were published on the website in Turkish and English.
A significant increase has been observed in the number of retail investors in ASELSAN stock since the beginning of 2017. This situation led to a
significant increase in the number of individual investors make a too many calls to the Investor Relations Department.
This increasing phone density has sometimes reached the point that disrupts the department’s daily routine. For this reason, it is evaluated that
answering the phones from investors via the Voice Response System will be beneficial in terms of enabling time management for phone calls
with investors and measuring and reporting the efficiency of these talks. The Voice Response System, which was completed in a short time using
internal resources, was announced to the public on 07.11.2019 and put into use.
Due to the reason that a regulation is present within the TCC numbered 6102 according to which the shareholders will be able to request from the
General Assembly the assignment of a special auditor for the inspection and disclosure of the financial status, 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 special auditor
in 2019.
2.3. General Assembly Meetings
The agenda and invitation related to the 44th Ordinary General Assembly Meeting dated 26.04.2019 with regard to 2018 operations realized at the
Company headquarters were duly announced comprising all the necessary information in a daily newspaper published in Turkey and on the website
and in the Turkish Trade Registry Gazette dated 25.03.2019. Furthermore, the invitation was sent to the main shareholders and the shareholders
who attended the previous meeting via mail two weeks prior to the General Assembly. The General Assembly Meeting was held with the attendance
of 302 shareholders, 12 physically, 290 electronically representing 914.929.925,364 shares (TL 914.929.925,364 nominal) of 1.140.000.000 total
shares representing the TL 1.140.000.000 paid-in capital. Media members did not participate in the General Assembly Meeting, which was held
simultaneously both physically and electronically.
In scope of the Communiqué on Corporate Governance numbered II.17-1 of CMB, three weeks before the Ordinary General Assembly on date
19.03.2019, the Ordinary General Assembly Document including the meeting agenda, place, time, copy of the power of attorney, total number
of shares as of 19.03.2019 and the voting rights, the number of shares representing the privileged shares and their voting rights, the reasons for
the changes in the members of Board of Directors, which is present in the agenda, the list of independent members of the Board of Directors,
the proposal of the Board of Directors with respect to the year 2018 dividend distribution, the CVs of the independent members of the Board of
Directors and their statements of independence and explanations regarding the agenda items were disclosed on Public Disclosure Platform and
were published on our Company website. The annual report was made available for the review of the shareholders at the headquarters 15 days
prior to the general assembly meeting and handed to the shareholders participating in the general assembly and to the ones who made requests.
For the facilitation of physical attendance to Ordinary General Assembly Meeting in 2019, transportation from central spots to our Akyurt facility
was provided for our shareholders, and our shareholders who attended the general assembly had a site visit.

In the Ordinary General Assembly Meeting in 2019, 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.
There are no questions, which has not been answered in the Ordinary General Assembly Meeting and answered by the Investor Relations
Department later on. Within the period, there have not been any transactions of which their resolutions were submitted to General Assembly
because the confirmative vote of the majority of the independent board members are required where as they have voted negatively. The minutes
of the General Assembly Meeting held in 2019 can be accessed from the website of our Company.
No Extraordinary General Assembly Meeting was held during the year 2019.
The shareholders were informed about donations and aids were made in 2018, with a seperate agenda item at the 44th Ordinary General Assembly
Meeting.
2.4. 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.
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.
2.5. Dividend Rights
There are no privileges with respect to the participation in the profit gained by the Company. The dividend policy was last revised in 2016 and was
submitted to following ordinary general assembly meeting. The dividend policy published on our website is given below.
“The dividend amounts which shall be calculated considering the sustainable growth rate, market capitalization, net working capital requirements,
dividend yield and cash flows, equity ratio, 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 targeting at least 10% of net profit in cash in the defined amounts or as bonus shares or
partly in cash, partly as bonus shares in defined amounts, shall be submitted to the approval of the General Assembly. Following the approval of the
General Assembly, the determined dividends 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 dividends are distributed equally regardless of all the existing shares and their
issue and acquiring dates.
In case of a revision made on the Dividend Policy, the resolution of Board of Directors regarding this revision and the reason for revision shall be
publicly announced with respect to the legislation of Capital Markets Board.”
As per the decision taken in the General Assembly on date 26.04.2019 pursuant to the provisions of the Articles of Association and to the
Capital Market Law and other legal regulations and within the legal periods, out of the profit gained from 2018 operations, the gross amount of
174.000.000 TL (15,26316 Kurus TL per 1 TL of share, gross 15,26316% over the capital) (net 147.900.000 TL – 12,97368 Kurus TL per 1 TL of
share, net 12,97368% over the capital) was disclosed at PDP. 49.300.000,- TL of the dividend was distributed on 19.06.2019, 49.300.000,- TL of it
was distributed on 18.09.2019 and 49.300.000,- TL of it was distributed on 18.12.2019 to our shareholders as cash dividend with 3 installments.
2.6. Transfer of Shares
The transfer of the nominated Group A shares representing majority part of the capital and which are not traded in Borsa İstanbul has been restricted
with the provision of article 6 of the Articles of Association stating “As the company operates in security and defense sector; 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”.

CHAPTER I II- PUBLIC DISCLOSURE AND TRANSPARENCY
3.1. 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 English is actively used and the information published on the web are updated
regularly.
The section “Investor Relations” is included on our website also comprising the issues listed in article 2.1.1 of the corporate governance principles
of Communiqué on Corporate Governance numbered II-17.1 issued by CMB on 03.01.2014.
Under “Investor Relations” section;

1. Corporate Governance
1.1 Shareholder Structure and Privileged Shares
1.2 Board of Directors
1.3 Key Resolutions of Board of Directors
1.4 Board Committees
1.5 Articles of Association
1.6 Company Profile and Trade Register Information
1.7 Policies
1.8 Ethical Principles
1.9 Corporate Governance Rating
1.10 General Assembly Meeting
1.11 Compliance with Corporate Governance Principles
1.12 Sustainability
2. Financial and Operational Data

2.1 Financial Reports
2.2 Financial Highlights
2.3 Investor Presentations
2.4 Board of Directors Reports
2.5 Earnings Release
3. Stock Info
3.1 Stock ID
3.2 Capital Increases
3.3 Analyst Coverage
3.4 Dividend Info
3.5 Investor Tools
4. BIST Disclosures
5. Annual Reports
6. Investor Calendar
7. FAQ
8. 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.
3.2. Annual Report
The Board of Directors prepare the annual report in detail regarding the operations of the Company and enable the public to reach complete and
accurate information that can be comprehensive. The 2018 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 CMB.

CHAPTER IV - STAKEHOLDERS
4.1. 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 an employee hand book and informative presentations over the intranet; continuous access to data
and support is provided through help desk application over the intranet. Nonetheless, general and personal data that can be necessary outside the
company are provided to access over the internet.
On the supplier side, ASELSAN Supplier Portal, which was already developed in order to provide efficient information transfer, dissemination
facilities, are promoted. Besides supplier communication and improvement operations are combined into a supplier specific web-based platform,
“Gücümüz Bir”. The infrastructure is completed and the platform will be active in the first quarter of 2020. Products that are selected for localization
process are shared and coordinated with our suppliers via informative brochures. Moreover, information is also shared by ASELSAN website, joint
organizations/workshops and face to face meetings.
High quality standards and high technological solutions are offered for services or delivered products with regard to customer needs and
expectations so as to meet customer satisfaction. Requirements of these quality standards are met and inspections, tests are applied through
every process from projects’ start till the delivery phases. Our all processes are administered by directives, quality plans, standards, audits and
test instructions. Our processes have been certified by internationally accepted standards such as AS9100, ISO 9001, AQAP and CMMI so that
our products and services are secured to protect quality standards. These certificates are renewed every year with the audits performed. Changes
and improvements of international standards are being followed and our processes are developed accordingly. Customer satisfaction, which is
the primary objective, is evaluated and reported for the access of related executives. In addition, results and trends are evaluated by the senior
management on an annual basis and required improvement activites are planned.
It is possible to increase the quality of product and service correspondingly increasing customer satisfaction by supplying the materials used in
products from the right and trusted sources. For this purpose, suppliers are subject to product and/or field of activity based selection and evaluation
processes. These activities that target continuous improvement and high quality standards for suppliers are regarded as playing an important role
in eventual product quality. In this direction, trainings, technology/equipment transfers, on the job trainings are for creating a high quality supplier
portfolio. All information is shared within the context of confidentiality with our suppliers, who have the status of our business partners, and it is
not permitted to share this information with unauthorized persons and third party firms. Through related directives, handling any kind of relations
between ASELSAN and the suppliers within the scope of law and ethical values, minimizing the occurrence of unsuitable conditions for protecting
parties and securing the justice and transparency.
ASELSAN Magazine, published in Turkish and English every 3 months and A Bülten published in Turkish every month, provide information
regarding the activities, technical issues and up-to-date social events. Hard copies of ASELSAN Magazine is delivered to the end users of products,
shareholders who participated to the General Assembly Meeting, company employees and other related parties. A Bülten is uploaded to the social
media, Turkcell Dergilik application and the corporate website right after it is publication.
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. The subject that no debt shall be given, no loans shall be granted or no pledges such as guarantees in favor thereof may be
extended to any members of the Board of Directors or to any employees through the use of ASELSAN assets, is declared within the “ASELSAN
Ethical Principles, Values and Conduct Rules Document”, which is available on our Company’s website.
The e-mail mechanism for the stakeholders to report their complaints regarding the transactions of the company, which are against the legislation
or deemed unethical, is stated in the ASELSAN Ethical Principles Policy. The policy has been published on the Turkish and English web site following
the approval of the policy. Within the context of the policy, the Ethics Committee is informing the Corporate Governance Committee.
4.2. 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.
Within the scope of the workshops that started in 2018 and continued in 2019, our employees in different tracks came together. In each of these
organizations where 2,665 employees from the engineering lane, 390 from the administrative and office jobs, and 359 from the technician lane,
and our 193 managers, have attended; opinions of our employees on issues and areas of development were received in many topics related to
performance, compensation and career management, loyalty, satisfaction, and ASELSAN working experience. The Chairman of the Board of
Directors and Chief Executive Officer attended the meetings and listened to the opinions of the employees personally. During the meetings, the

rapporteurs in the halls noted every opinion, prepared detailed reports in line with the opinions, and presented to the Chairman of the Board
of Directors and Chief Executive Officer. The Chairman of the Board of Directors shared his evaluations regarding the collected opinions, the
actions taken and the planned activities based on the opinions with all ASELSAN employees. The data obtained as a result of the completion of all
workshops were handled together with all the feedback mechanisms (satisfaction surveys, exit interviews, one-on-one interviews with employees))
used in ASELSAN, concrete solutions and action plans were produced and some of the projects were implemented. Therefore, the opinions of the
employees have been turned into action plans.
In addition, our company has a Personnel Representation system. Our Personnel Representatives also work as one of the channels through which
opinions and suggestions collected from our employees are transferred to the Senior Management.
4.3. 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.
60% of our employees stand for the engineering group, 28% for the technician group, 7% for the administrative group, 3% for the office personnel
and 2% of the worker group.
There were no complaints related to discrimination from the employees in 2019. Performance and rewarding policies are announced to all of our
employees through Company directives.
4.4. Ethical Rules and Social Responsibility
4.4.1 Ethical Rules

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.
“ASELSAN Ethical Principles Instruction” 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 deemed neccessary.
ASELSAN Ethical Principles Committee comprises of seven members, the chairmanship of the Committee is executed by the Vice President
for Corporate Management and the secretariat is handled by Human Resources Directorate. Other members consist of the representatives of
Legal Affairs Department, Industrialization and Procurement Department, Internal Audit Chairmanship, Human Resources Directorate who are
assigned by the suggestion of the CEO, plus two personnel whereas one shall have at least 15 years and the other shall have 5-10 years of ASELSAN
experience, chosen among the top 10 ranked nominees with the votes of ASELSAN personnel. None of the members should have any disciplinary
penalty or ethical issues. If there are no changes in the organization, the Ethical Committee members serve at least for two years.
Ethical Committee meets as soon as possible when there is an application. However, Committee, Board of Directors, Corporate Governance
Committee, CEO or the Chairman of the Ethical Committee can call a meeting. Beyond evaluating applications, Ethical Committee represents
reason and conscience of ASELSAN and works to increase the awareness about ethical values in ASELSAN family.
When there is an application, ethical committee conducts the required assestment and submit a report to the CEO. At the end of this investigation,
necessary steps are taken in accordance with relative law and ASELSAN regulations and directives. The applications for last one year and assessment
result is reported to Board of Directors each year in January.
In 2019, Disciplinary Procedures and Practices and Ethical Principles Instructions were updated and announced to the employees through
ASELSAN intranet system.

4.4.2. Social Responsibility

An independent British institution, Carbon Disclosure Project (CDP), which reports how the companies manage the risks of climate changes, has
announced the 2018 results on January 2019. ASELSAN is placed in the A- list according to 2018 results, among the firms that most successfully
manage climate change risks through production process and has the highest gas emission performance on the outcome of the research conducted
by evaluating big firms including firms listed on Borsa İstanbul.
In ASELSAN, where decreasing carbon emission is one of the strategic goals, carbon emission has been monitored since 2009. Also, ASELSAN is the
first and only company that is ranked with the highest initial score among Defence Industry firms in Turkey by participating in CDP survey.
Thanks to the Zero Waste Project launched in 2019, waste from the dining halls and offices across ASELSAN has been started to be collected
separately to be recycled in a manner that will add value to the environment and the economy. The lunch leftovers are being shipped to animal
shelters and used as organic waste composting and office waste is recycled. Garment and toy collection boxes were placed in the campus parking
areas and delivered to those in need within the scope of social responsibility. With the help of vegetable waste oil cans placed in the parking lots,
the vegetable waste oils brought by the personnel from their homes were sent for recycling.
ASELSAN has decreased carbon emission significantly through its efforts, and continues its operations by increasing momentum in the fields of
increasing energy efficiency in production, giving priority to production technologies that decrease carbon emission, switching to use of energy
that does not cause carbon emission.
Having certifications for ISO 14001: 2015 Environmental and ISO 45001: 2018 Occupational Health and Safety Integrated Management System;
we will proceed to take part in pioneer applications through actualization of national and international initiatives. ASELSAN is one of the leading
companies that has completed transition to ISO 45001: 2018 Occupational Health and Safety Management System Standard in 2019.
In November 2014, Borsa Istanbul (BIST) has launched Sustainability Index that display the performance of January-March 2014 time period for
BIST-30 firms in the fields of financial, environmental, social issues and corporate governance. With respect to that, as of this date, ASELSAN started
publishing sustainability reports. As a result of the evaluation of our Company on the ASELSAN Sustainability Report, published in Turkish and
English for the first time before the Index assessments, ASELSAN was among the 15 firms that were approved to be included in BIST Sustainability
Index. In November 2019, ASELSAN kept its place in the index as a consequence of the re-evaluation of ASELSAN Sustainability Report that was
published in June 2019.
Sustainability reports that are published on our website (www.aselsan.com.tr) include the details of sustainable applications in the fields of
strategic governance, corporate governance, ethical principles, internal audit, bribery and corruption, risk management, communication with
stakeholders, supply chain, information systems, facility management, employee development, human rights, occupational health and safety,
environmental management.
In the year 2019, our company supported the following events through sponsorship:
• Turkish Armed Forces Rehabilitation and Nursing Center’s Handicapped Sports Club’s sport activities held in 2019,
• 180th Foundation Anniversary Celebration of Gendarmerie General Command,
• The Young Eagles Week 2019 event performed by Turkish Air Force,
• Electro-Optic Workshop held by the Presidency of Defence Industries,
• TEKNOFEST 2018, İstanbul Aerospace and Technology Festival,
• 19th Submarine Commanders Conference,
• ROBOIK 2019 Unmanned and Autonomous Land Vehicles Development Competition Award Ceremony held by Presidency of Defence Industries,
• Sniper Competition held by Gendarmerie General Command.

CHAPTER IV - BOARD OF DIRECTORS
5.1. Structure and Formation of Board of Directors

In our Company, 3 members of 9 members of Board of Directors are independent members. The duties of Nomination Committee are executed
by Corporate Governance Committee. The report regarding the evaluation of the list of Independent Members of Board of Directors prepared by
Corporate Governance Committee on 21.01.2019 was presented to Board of Directors on 28.01.2019. Within the scope of CMB’s Communiqué
on Corporate Governance numbered II.17-1, CMB has not stated any adverse opinion on the nominee list and the evaluation report. The CVs and
independence statements of the 4 nominees were announced to public on our website on 19.03.2019. As a result of the voting at the General
Assembly Meeting on 26.04.2019, 3 nominees were elected as Independent Members of Board of Directors. There were no cases to eliminate the
independency of the Independent Members of the Board of Directors in 2019.
The CVs of the Members of the Board of Directors are included in the annual report and the information with respect to their duty terms is provided
in the table below.
Name Surname Duty Election Date

Haluk GÖRGÜN Chairman / Managing Member / CEO March 2017
Mustafa Murat ŞEKER Vice Chairman / Managing Member May 2013
Mehmet ARIK Independent Member April 2018
Ercümend ARVAS Independent Member March 2016
Mehmet Fatih KACIR Member April 2019
Alpaslan KAVAKLIOĞLU Member April 2019
Salih KUL Member April 2019
İbrahim ÖZKOL Independent Member March 2017
Celal Sami TÜFEKCİ Member April 2018
In article 13 of 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. 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.
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 were given below.
• There is an executive member in the Board of Directors.

• The statements of independence of the Independent Members of the Board of Directors have been provided at the annex 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 CMB.
• Members of the Board of Directors, in accordance with the Working Directive of 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.
5.2. Principles of Activity of Board of Directors

Board of Directors carries out its duties and responsibilities determined with reference to TCC, 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 Working 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 2019 was 34, where 22 of the decisions in the meetings are interim decisions. 90% of the Members of the Board of Directors
attended 91% of the 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 Presidency.

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.
Board Office is established under Board of Directors in order to coordinate necessary issues in the name of the Board, particularly the relationships
with the Presidency and TAFF, to execute planning and support the Board of Directors’ operations.
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 acceptance 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 TCC, 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 mandatory as to be complied by the Capital Markets Board, are invalid and considered as in contrary to the Articles of Association”. In the
operation year 2019, 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 platform.
In accordance with the article 4.2.8 of Capital Markets Board Corporate Governance Communiqué; Executive Liability Insurance Policy was signed
for Board of Directors members on 17.07.2019 with the total liability amount of USD 75.000.000,- which corresponds to more than 25% of the
paid-in-capital of our Company, with a validity period of 1 year.
5.3. Number of Committees Formed in the Board of Directors with Their Structures and Independency
As per the title “Committees Formed in 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 have duties in more than one committee. This is because it is
mandatory 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
Annual Report.

AUDIT COMMITTEE
Committee Members (January – December 2019)

İbrahim ÖZKOL: Chairman / Independent Member of Board of Directors
Ercümend ARVAS: Member / Independent Member of Board of Directors
Mehmet ARIK: Member / Independent Member of Board of Directors
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 26.02.2019, 07.05.2019, 06.08.2019 and 05.11.2019 regarding the financial statements with
the participation of the related independent audit company in 2019.
In order to increase the efficiency of internal audit, attention was paid to strengthen the cooperation with Internal Audit Presidency and to the
supervision of internal audit activities, direct and continuous communication was established between Audit Committee and Internal Audit
Presidency. A dimension of this communication; Audit Committee-Internal Audit Presidency coordination meetings in 2019, were held 8 times on
dates 22.01.2019, 20.02.2019, 13.03.2019, 21.05.2019, 16.07.2019, 16.09.2019, 14.10.2019 and 19.12.2019.
The Committee was active in two main topics in 2019.
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 2017, March 2018, June 2018 and September 2018 financials and Board of Directors reports were
prepared in accordance with the communiqué numbered II, 14.1, and submitted to Board of Directors by Audit Committee and presented to the
public via Public Disclosure Platform.
The procurement process for independent audit services for the year 2019 as per the CMB’S communiqué numbered II-14: 1, was handled by
the Industrialization and Procurement Directorate and the procurement proposal resolution of the Board of Directors regarding procurement
of services from “YEDİTEPE Bağımsız Denetim A.Ş.” was submitted for approval on the General Assembly Meeting dated 26.04.2019 and was
accepted.
ii. Internal Audit Presidency:

Within the scope of the internal audit activities of the Company, the relations between the Internal Audit Presidency and the Board of Directors have
been carried out through Audit Committee. A direct and continuous contact between Audit Committee and Internal Audit Presidency is present.
CORPORATE GOVERNANCE COMMITTEE

Committee Members (January – April 2019)
Ercümend ARVAS: Chairman / Independent Member of the Board of Directors
Celal Sami TÜFEKCİ: Member / Member of the Board of Directors
Murat ÜÇÜNCÜ: Member / Member of the Board of Directors
Pınar ÇELEBİ: Member / Investor Relations Manager
Committee Members (April- December 2019)

Ercümend ARVAS: Chairman / Independent Member of the Board of Directors
Salih KUL: Member / Member of the Board of Directors
Celal Sami TÜFEKCİ: Member / Member of the Board of Directors
Pınar ÇELEBİ: Member / Investor Relations Manager
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 activities 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 4 times within the activity year 2019 on dates, 28.01.2019, 24.06.2019, 22.07.2019, and
12.12.2019. The meeting minutes of the Committee may be reached on our website. The committee was active in 3 respective tasks in 2019:
i. Operations of Investor Relations Department:

Investor Relations Department have attended all the meetings in 2019 and performed secretariat procedures of the committee with regard to
“ASELSAN Corporate Governance Committee Working Directive”. Information was provided to the committee about the activities of the Investor
Relations Department in the Committee meetings.
In 2019, the subjects discussed and tasks carried by the Corporate Governance Committee within the context of the meetings are given below:
• Corporate Governance Committee Evaluation Report,
• Preparation of ASELSAN Corporate Governance Principles Compliance Report and the submission of the report to Board of Directors,
• Independent Board Members selection process,
• Corporate Governance Rating,
• Preparation of Corporate Governance Committee Evaluation Report and the submission of the report to Board of Directors,
• Presentation regarding the compliance of ASELSAN Strategic Plan, Technology Roadmap and Master Plan by the Vice Presidency of Technology
and Strategy Management,
• Discussing the proposed amendments in the ASELSAN Ethical Principles Directive,
• Discussing the amendment of the ASELSAN Disciplinary Procedures and Practices Functor as a directive and updating the “ASELSAN Allowance
Directive” offered by the Vice Presidency of Corporate Governance as a functor.
ii. Corporate Governance Rating:

The evaluation of corporate governance rating performed by SAHA Corporate Governance and Credit Rating Services were concluded during the
last quarter of 2019. According to the review, the score of 12.12.2018, 9,20 was updated as 9,29 out of 10 on 12.12.2019.
Our Company’s share has been listed in the corporate governance index since the date
14.12.2012, which it first entered the index. Rating reports can be accessed on the company 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 was carried on by the Committee
and the resulting nominee list was presented at the Board of Directors meetings on date 28.01.2019.
CMB has not stated any opposing opinons regarding the nominees’ list and evaluation report which was submitted by the Board of Directors. The
final list was submitted to shareholders’ voting on General Assembly Meeting on 26.04.2019 and as a result, Ercümend ARVAS, Mehmet ARIK and
İbrahim ÖZKOL were elected as independent members to serve for 1 year.
EARLY DETECTION AND MANAGEMENT OF RISK COMMITTEE
ASELSAN Board of Directors established the “Early Detection and Management of Risk Committee” with the resolution dated 10.04.2012 and
numbered 720/1. The Committee executes as per the directive numbered ASY-01-066.
Committee Members (January – April 2019)

Mehmet ARIK: Chairman / Independent Member of the Board of Directors
Bayram GENÇCAN: Member / Member of the Board of Directors
Committee Members (April – December 2019)

Mehmet ARIK: Chairman / Independent Member of the Board of Directors
Salih KUL: Member / Member of the Board of Directors
In 2019 the Committee continued to identify the risks which prevent ASELSAN from reaching its goals; manage the risks in accordance with the
company’s risk-taking profile; report the risk activities; build risk aware decision mechanisms and internal control. Risks identified through risk
management processes are prioritized depending on their probability and impact. It is ensured that important risks are monitored and reported. In
this context, in 2018 the Committee held 6 meetings on 09.01.2019, 07.03.2019, 23.05.2019, 16.07.2019, 17.09.2019 and 26.11.2019.
Committee’s activities are summarized below:

• “2018 Evaluation Report” was prepared and submitted to Board of Directors in January 2019.
• “Corporate Risk Evaluation Report” was prepared and submitted to Board of Directors in January 2019, March 2019, May 2019, July 2019,
October 2019 and November 2019. In the reports;
• Important risks of ASELSAN were evaluated and monitored. The risk classification, explanation, rating, strategy, owner/responsible, current
control operations and relevant indicators and mitigating actions were included in the report.
• Warning levels of benchmarks for risk indicators were determined and the risk indicators which divert from the benchmark and can signal the
poor performance of a goal during the reporting period were also reported.
• Risk management chapters in the annual report and the other reports set by the legal authorities were prepared.

The secretariat formalities of the Committee were performed by Enterprise Risk and Process Management Department of Finance Directorate.
5.4. Risk Management and Internal Control Mechanism
In ASELSAN, the effectiveness of internal audit activities, corporate governance, risk management and internal control processes are improved
and the Company contributes to the achievement of the Company’s targets. The most important role of the internal audit activities, which is an
important component of the internal control system, is the provision of assurance and consultancy services to the Audit Committee and the Board
of Directors on the internal control system and enterprice risk management. The 3-year audit plan and work programs are prepared on a risk-based
basis and the results of the audit are reported to the Audit Committee and regular meetings are held with the Committee. By the Internal Audit
Department; compliance with legal regulations and company regulations, the application of ethical principles and the adequacy of controls to
eliminate risks are evaluated.
5.5. 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 its implementations.
Strategic Management Process is a part of Corporate Governance and is managed by the Chairmand and CEO in the name of Board of Directors,
following the approval of the Strategic Plan which is prepared with the coordination of Strategic Management Directorate. Reaching ASELSAN’s
long term goals and sustaining success can be achieved through environment friendly strategies.
ASELSAN’s vision is to be a reliable, competitively preferred, environment-friendly and human conscious technology firm, which preserves its
sustainable growth in the global market via the values created for stakeholders, as well as serving its establishment purposes. Within this concept,
annually updated 5-year Strategic Plan and 3-year Budgets are prepared. With this methodology, short and medium term targets are specified
by considering long term goals. The operations to be carried out for these targets are executed by Sector Presidencies/Vice Presidencies and
performance evaluations are made based on Balanced Scorecard method, which is widely used in the world.
5.6. Financial Rights
Renumeration procedures for Board of Directors Members and Managers with Executive Responsibility, which are set in written form in accordance
with the Corporate Governance Principles, are published on our Company’s website.
The renumeration and all other benefits provided to board members are explained on an individual basis in the annual report.
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 44th Ordinary General Assembly held on 26.04.2019, the
Members of the Board of Directors are paid TL 3.000,- 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.

STATEMENT OF INDEPENDENCE
TO THE BOARD OF DIRECTORS OF ASELSAN ELEKTRONİK SANAYİ VE TİCARET A.Ş.
ANKARA
Date: 18.01.2019
With respect to the corporate governance principle numbered 4.3.6 of the Capital Markets Board’s Communiqué on Corporate Governance
numbered II-17.1, in order for me to be selected as an Independent Board Member of ASELSAN Elektronik Sanayi ve Ticaret (Company), I hereby
agree, represent and undertake that I;
a) do not have a relationship in terms of employment at an administrative level to take upon significant duty and responsibilities within the
last five years, do not own more than 5% of the capital or voting rights or privileged shares either jointly or solely or do not have established a
significant commercial relation between the corporation, companies on which the corporation hold control of management or significant effect
and shareholders who hold control of management of the corporation or have significant effect in the corporation and legal entities on which these
shareholders hold control of management and myself, my spouse and my relatives by blood or marriage up to second degree,
b) have not been a shareholder (5% and more), an employee at an administrative level to take upon significant duty and responsibilities or member
of board of directors within the last five years in companies that the corporation purchases or sells goods or service at a significant level within
the framework of the contracts executed, especially on audit (including tax audit, statutory audit, internal audit), rating and consulting of the
corporation, at the time period when the corporation purchases or sells services or goods,
c) have professional education, knowledge and experience in order to duly fulfill the duties assigned for being an independent board member,
d) will not be serving as a full time employee at public authorities and institutions after being elected, except being an academic member at
university provided that is in compliance with the relevant legislation,
e) am residing in Turkey in accordance with the Income Tax Law (I.T.L) dated 31.12.1960 and numbered 193,
f) am capable to contribute positively to the operations of the corporation, to maintain my objectivity in conflicts of interests between the
corporation and the shareholders, have strong ethical standards, professional reputation and experience to freely take decisions by considering
the rights of the stakeholders,
g) am able to allocate time for the corporation’s business in order to follow up the activities of the corporation and duly fulfill the allocated duties,
h) have not conducted membership of board of directors more than a term of six years in the last ten years,
i) am not the independent member of the board of directors in more than three of the corporations as such; the corporation or the controlling
shareholders of the corporation who hold the control of management corporations and in more than five corporations in total which are admitted
to the trading on the exchange,
j) have not been registered and announced as a board member representing a legal entity.
I hereby submit this to the knowledge of the Board of Directors, shareholders and all relevant parties.
Sincerely yours,

ANKARA
Date: 18.01.2019
Sincerely yours,
İbrahim Özkol

ANKARA
Date: 18.01.2019
Sincerely yours,
Mehmet Arık

APPENDIX-1
Compliance
Not
CORPORATE GOVERNANCE COMPLIANCE REPORT Yes Partial No Exempted Explanation
Applicable
1.1. FACILITATING THE EXERCISE OF SHAREHOLDER RIGHTS
1.1.2 - Up-to-date information and disclosures which

may affect the exercise of shareholder rights are X - - - -
available to investors at the corporate website.
1.2. RIGHT TO OBTAIN AND REVIEW INFORMATION
1.2.1 - Management did not enter into any transaction

X - - - -
that would complicate the conduct of special audit.
1.3. GENERAL ASSEMBLY
1.3.2 - The company ensures the clarity of the General

Assembly agenda, and that an item on the agenda does X - - - -
not cover multiple topics.
1.3.7 - Insiders with privileged information have

informed the board of directors about transactions
conducted on their behalf within the scope of the - - - - X
company’s activities in order for these transactions to
be presented at the General Shareholders’ Meeting.
1.3.8 - Members of the board of directors who are

concerned with specific agenda items, auditors, and
other related persons, as well as the officers who
X - - - -
are responsible for the preparation of the financial
statements were present at the General Shareholders’
Meeting.
1.3.10 - The agenda of the General Shareholders’

Meeting included a separate item detailing the
X - - - -
amounts and beneficiaries of all donations and
contributions.
1.3.11 - The General Shareholders’ Meeting was held

The General Assembly meeting is not open to the
open to the public, including the stakeholders, without - X - - -
media.
having the right to speak.
1.4. VOTING RIGHTS
1.4.1 - There is no restriction preventing shareholders

X - - - -
from exercising their shareholder rights.
1.4.2 - The company does not have shares that carry

X - - - -
privileged voting rights.
1.4.3 - The company withholds from exercising its

voting rights at the General Shareholders’ Meeting of
- - - - X
any company with which it has cross-ownership, in case
such cross-ownership provides management control.

Compliance
Not
Applicable
1.5. MINORITY RIGHTS
1.5.1 - The company pays maximum diligence to the

X - - - -
exercise of minority rights.
1.5.2 - The Articles of Association extend the use Utmost attention is paid for the execution of minority
of minority rights to those who own less than one rights in our Company and the provisions of Turkish
- - X - -
twenthieth of the outstanding shares, and expand the Code of Commerce and the relevant legislation
scope of the minority rights. regarding minority rights are applied as is.
1.6. DIVIDEND RIGHT
1.6.1 - The dividend policy approved by the General

Shareholders’ Meeting is posted on the company X - - - -
website.
1.6.2 - The dividend distribution policy comprises the

minimum information to ensure that the shareholders
X - - - -
can have an opinion on the procedure and principles of
dividend distributions in the future.
1.6.3 - The reasons for retaining earnings, and their

X - - - -
allocations, are stated in the relevant agenda item.
1.6.4 - The board reviewed whether the dividend policy

balances the benefits of the shareholders and those of X - - - -
the company.
1.7. TRANSFER OF SHARES
The transfer of the nominated Group A shares

representing majority part of the capital and which are
not traded in Borsa İstanbul has been restricted with
the provision of article 6 of the Articles of Association
stating “As the company operates in security and
1.7.1 - There are no restrictions preventing shares from defense sector, Group A shares shall not be sold
- - X - -
being transferred. 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”.
2.1. CORPORATE WEBSITE
2.1.1. - The company website includes all elements

X - - - -
listed in Corporate Governance Principle 2.1.1.
2.1.2 - The shareholding structure (names, privileges,

number and ratio of shares, and beneficial owners of
X - - - -
more than 5% of the issued share capital) is updated on
the website at least every 6 months.
2.1.4 - The company website is prepared in other

selected foreign languages, in a way to present exactly X - - - -
the same information with the Turkish content.

Compliance
Not
Applicable
2.2. ANNUAL REPORT
2.2.1 - The board of directors ensures that the annual

report represents a true and complete view of the X - - - -
company’s activities.
2.2.2 - The annual report includes all elements listed in

X - - - -
Corporate Governance Principle 2.2.2.
3.1. CORPORATION’S POLICY ON STAKEHOLDERS
3.1.1 - The rights of the stakeholders are protected

pursuant to the relevant regulations, contracts and X - - - -
within the framework of bona fides principles.
3.1.3 - Policies or procedures addressing stakeholders’

X - - - -
rights are published on the company’s website.
3.1.4 - A whistleblowing programme is in place for

X - - - -
reporting legal and ethical issues.
3.1.5 - The company addresses conflicts of interest

X - - - -
among stakeholders in a balanced manner.
3.2. SUPPORTING THE PARTICIPATION OF THE STAKEHOLDERS IN THE CORPORATION’S MANAGEMENT
Although the mechanisms that enable the

3.2.1 - The Articles of Association, or the internal
participation of stakeholders in the management of the
regulations (terms of reference/manuals), regulate the - X - - -
company are built, they are not included in the Articles
participation of employees in management.
of Association.
3.2.2 - Surveys/other research techniques,

consultation, interviews, observation method etc. were
X - - - -
conducted to obtain opinions from stakeholders on
decisions that significantly affect them.
3.3. HUMAN RESOURCES POLICY
3.3.1 - The company has adopted an employment

policy ensuring equal opportunities, and a succession X - - - -
plan for all key managerial positions.
3.3.2 - Recruitment criteria are documented. X - - - -
3.3.3 - The company has a policy on human resources

X - - - -
development, and organises trainings for employees.
3.3.4 - Meetings have been organised to inform

employees on the financial status of the company, X - - - -
remuneration, career planning, education and health.
3.3.5 - Employees, or their representatives, were

Although there is an employee representative practice
notified of decisions impacting them. The opinion of the - X - - -
in our company, there is no union organization.
related trade unions was also taken.

Compliance
Not
Applicable
3.3.6 - Job descriptions and performance criteria
have been prepared for all employees, announced to
X - - - -
them and taken into account to determine employee
remuneration.
3.3.7 - Measures (procedures, trainings, raising

awareness, goals, monitoring, complaint mechanisms)
have been taken to prevent discrimination, and to X - - - -
protect employees against any physical, mental, and
emotional mistreatment.
Establishment of associations by employees

about social responsibility, social activities, etc. is
3.3.8 - The company ensures freedom of association
- X - - - encouraged and there is no regulation regarding
and supports the right for collective bargaining.
the recognition of the right to collective bargaining
agreements.
3.3.9 - A safe working environment for employees is

X - - - -
maintained.
3.4. RELATIONS WITH CUSTOMERS AND SUPPLIERS
3.4.1 - The company measured its customer satisfaction,

X - - - -
and operated to ensure full customer satisfaction.
3.4.2 - Customers are notified of any delays in handling

X - - - -
their requests.
3.4.3 - The company complied with the quality

X - - - -
standards with respect to its products and services.
3.4.4 - The company has in place adequate controls to

protect the confidentiality of sensitive information and X - - - -
business secrets of its customers and suppliers.
3.5. ETHICAL RULES AND SOCIAL RESPONSIBILITY
3.5.1 - The Board of the corporation has adopted a code

X - - - -
of ethics, disclosed on the corporate website.
3.5.2 - The company has been mindful of its social

responsibility and has adopted measures to prevent X - - - -
corruption and bribery.
4.1. ROLE OF THE BOARD OF DIRECTORS
4.1.1 - The Board of Directors has ensured strategy

and risks do not threaten the long-term interests of
X - - - -
the company, and that effective risk management is in
place.
4.1.2 - The agenda and minutes of board meetings

indicate that the board of directors discussed and
approved strategy, ensured resources were adequately X - - - -
allocated, and monitored company and management
performance.

Compliance
Not
Applicable
4.2. ACTIVITIES OF THE BOARD OF DIRECTORS
4.2.1 - The Board of Directors documented its meetings

X - - - -
and reported its activities to the shareholders.
4.2.2 - Duties and authorities of the members of the

X - - - -
Board of Directors are disclosed in the annual report.
4.2.3 - The Board has ensured the company has an

internal control framework adequate for its activities, X - - - -
size and complexity.
4.2.4 - Information on the functioning and effectiveness

of the internal control system is provided in the annual X - - - -
report.
4.2.5 - The roles of the Chairman and Chief Executive

X - - - -
Officer are separated and defined.
4.2.7 - The Board of Directors ensures that the Investor

Relations department and the corporate governance
committee work effectively. The board works closely X - - - -
with them when communicating and settling disputes
with shareholders.
4.2.8 - The company has subscribed to a Directors and

Officers liability insurance covering more than 25% of X - - - -
the capital.
4.3. STRUCTURE OF THE BOARD OF DIRECTORS
4.3.9 - The board of directors has approved the policy

There are no female members in the Board of
on its own composition, setting a minimal target of
Directors, and a target was not set to keep the female
25% for female directors. The board annually evaluates - - X - -
member ratio at a minimum of 25%. There is no written
its composition and nominates directors so as to be
Company policy regarding this issue.
compliant with the policy.
4.3.10 - At least one member of the audit committee

has 5 years of experience in audit/accounting and X - - - -
finance.
4.4. BOARD MEETING PROCEDURES
4.4.1 - Each board member attended the majority of the

X - - - -
board meetings in person.
4.4.2 - The Board has formally approved a minimum

time by which information and documents relevant
X - - - -
to the agenda items should be supplied to all board
members.
4.4.3 - The opinions of board members that could not

attend the meeting, but did submit their opinion in X - - - -
written format, were presented to other members.

Compliance
Not
Applicable
4.4.4 - Each member of the board has one vote. X - - - -
4.4.5 - The Board has a charter/written internal rules

X - - - -
defining the meeting procedures of the board.
4.4.6 - Board minutes document that all items on the

agenda are discussed, and board resolutions include X - - - -
director’s dissenting opinions if any.
4.4.7 - There are limits to external commitments of There are no limitations for the members of the Board
board members. Shareholders are informed of Board of Directors regarding them to carry duties outside
- X - - -
members’ external commitments at the General the company, except the duties that are subject to
Shareholders’ Meeting. prohibition of competition.
4.5. BOARD COMMITTEES
The independent members take part in more than

4.5.5 - Board members serve in only one of the Board’s
- - X - - one committee because the number of independent
committees.
members is 3.
4.5.6 - Committees have invited persons to the

X - - - -
meetings as deemed necessary to obtain their views.
4.5.7 - If external consultancy services are used, the

independence of the provider is stated in the annual - - - - X
report.
4.5.8 - Minutes of all committee meetings are kept and

X - - - -
reported to board members.
4.6. FINANCIAL RIGHTS
4.6.1 - The board of directors has conducted a board

performance evaluation to review whether it has - - X - - There is no such practice within the company.
discharged all its responsibilities effectively.
4.6.4 - The company did not extend any loans to its

board directors or executives, nor extended their
lending period or enhanced the amount of those loans,
X - - - -
or improve conditions thereon, and did not extend
loans under a personal credit title by third parties or
provided guarantees such as surety in favour of them.
The salaries of the Chairman and the members of the

4.6.5 - The individual remuneration of Board members Board of Directors are given seperately in the Board of
- X - - -
and executives is disclosed in the annual report. Directors Report and the annual report but the salaries
of the CEO and vice presidents are given as a sum.

CORPORATE GOVERNANCE INFORMATION FILLINGS
1. SHAREHOLDERS
1.1. Facilitating the Exercise of Shareholders Rights
The number of investor meetings (conference, seminar/etc.) organised by
3
the company during the year
1.2. Right to Obtain and Examine Information
The number of special audit request(s) -
The number of special audit requests that were accepted at the General
-
Shareholders’ Meeting
1.3. General Assembly
Link to the PDP announcement that demonstrates the information
https://www.kap.org.tr/en/Bildirim/748654
requested by Principle 1.3.1. (a-d)
Whether the company provides materials for the General Shareholders’
Meeting in English and Turkish at the same time
The links to the PDP announcements associated with the transactions that
are not approved by the majority of independent directors or by unanimous -
votes of present board members in the context of Principle 1.3.9
The links to the PDP announcements associated with related party
transactions in the context of Article 9 of the Communique on Corporate -
Governance (II-17.1)
The links to the PDP announcements associated with common and
continuous transactions in the context of Article 10 of the Communique on https://www.kap.org.tr/en/Bildirim/748654
Corporate Governance (II-17.1)
The name of the section on the corporate website that demonstrates the
Investor Relations > Corporate Governance > Policies
donation policy of the company
The relevant link to the PDP with minute of the General Shareholders’
Meeting where the donation policy has been approved
The number of the provisions of the articles of association that discuss the
-
participation of stakeholders to the General Shareholders’ Meeting
The representatives of the Independent Audit Company and
Identified stakeholder groups that participated in the General Shareholders’
the Corporate Governance Rating Company attended the
Meeting, if any
general assembly meeting.
1.4. Voting Rights
Whether the shares of the company have differential voting rights No
In case that there are voting privileges, indicate the owner and percentage
-
of the voting majority of shares.
The percentage of ownership of the largest shareholder 74,20%
1.5. Minority Rights
Whether the scope of minority rights enlarged (in terms of content or the
No
ratio) in the articles of the association
If yes, specify the relevant provision of the articles of association -
1.6. Dividend Right
The name of the section on the corporate website that describes the
dividend distribution policy
Minutes of the relevant agenda item in case the board of directors
proposed to the general assembly not to distribute dividends, the reason for -
such proposal and information as to use of the dividend
PDP link to the related general shareholder meeting minutes in case the
board of directors proposed to the general assembly not to distribute -
dividends


General Assembly Meetings
Specify the name
The number
of the page of the Specify the name The number of
of information
corporate website of the page of the the relevant item
requests received Shareholder The number of
Percentage that contains corporate website or paragraph
by the company participation Percentage declarations
General of shares the General that contains all of General The link to the related PDP
regarding the rate to the of shares by insiders
Meeting directly Shareholders’ questions asked Shareholders’ general shareholder meeting
clarification General represented received by
Date present at Meeting minutes, in the general Meeting minutes notification
of the agenda Shareholders’ by proxy the board of
the GSM and also indicates assembly meeting in relation to
of the General Meeting directors
for each resolution and all responses related party
Shareholders’
the voting levels for to them transactions
Meeting
or against
Investor Relations
> Corporate
Investor Relations
Governance
> Corporate https://www.kap.org.tr/en/
26/04/2019 0 80,26% 0,03% 80,23% > General Article 12 7
Governance > Bildirim/758499
Assembly >
General Assembly
General Assembly
Documents

2. DISCLOSURE AND TRANSPARENCY

2.1. Corporate Website
Specify the name of the sections of the website providing the information requested
Investor Relations > Corporate Governance
by the Principle 2.1.1.
If applicable, specify the name of the sections of the website providing the list of
shareholders (ultimate beneficiaries) who directly or indirectly own more than 5% of -
the shares.
List of languages for which the website is available Turkish, English
2.2. Annual Report
The page numbers and/or name of the sections in the Annual Report that demonstrate the information requested by principle 2.2.2.
The information on the duties of the members of
the board of directors and executives conducted
a) The page numbers and/or name of the sections in the Annual Report that
out of the company is under Article 3/a of the
demonstrate the information on the duties of the members of the Board of directors
Report of Board of Directors. Declarations on
and executives conducted out of the company and declarations on independence of
independence of board members are end of the
board members
Annual Report > Corporate Governance Principles
Compliance Report.
The information is in the Annual Report >
Corporate Governance Principles Compliance
b) The page numbers and/or name of the sections in the Annual Report that
Report > Number of Committees Formed in the
demonstrate the information on committees formed within the board structure
Board of Directors with Their Structures and
Independency title.
c) The page numbers and/or name of the sections in the Annual Report that
demonstrate the information on the number of board meetings in a year and the
Report > Principles of Activity of the Board of
attendance of the members to these meetings
Directors title.
ç) The page numbers and/or name of the sections in the Annual Report that
The information is under Article 7 of the Report of
demonstrate the information on amendments in the legislation which may
Board of Director.
significantly affect the activities of the corporation
d) The page numbers and/or name of the sections in the Annual Report that The information is under Financial Information
demonstrate the information on significant lawsuits filed against the corporation and Note 15 and at the same time under Article 9 of
the possible results thereof the Report of Board of Directors.
e) The page numbers and/or name of the sections in the Annual Report that
demonstrate the information on the conflicts of interest of the corporation among
the institutions that it purchases services on matters such as investment consulting None.
and rating and the measures taken by the corporation in order to avoid from these
conflicts of interest
f) The page numbers and/or name of the sections in the Annual Report that
The information is under Article 3/b of the Report
demonstrate the information on the cross ownership subsidiaries that the direct
of Board of Directors.
contribution to the capital exceeds 5%
g) The page numbers and/or name of the sections in the Annual Report that The information is in the Annual Report >
demonstrate the information on social rights and professional training of the Corporate Governance Principles Compliance
employees and activities of corporate social responsibility in respect of the corporate Report > Ethical Rules and Social Responsibility
activities that arises social and environmental results title.

3. STAKEHOLDERS
3.1. Corporation’s Policy on Stakeholders
employee remedy or severance policy
The number of definitive convictions the company was subject to in relation The information is under Article 9 of the Annual Report of
to breach of employee rights Board of Directors.
The position of the person responsible for the alert mechanism (i.e.
CEO
whistleblowing mechanism)
Chairman & CEO Prof. Dr. Haluk GÖRGÜN Phone Number:
(0312) 592 60 00 Address: ASELSAN Elektronik Sanayi ve
The contact detail of the company alert mechanism.
Ticaret A.Ş. Mehmet Akif Ersoy Mahallesi 296. Cadde No:
16 06370 Yenimahalle ANKARA, TURKEY
3.2. Supporting the Participation of the Stakeholders in the Corporation’s Management
Name of the section on the corporate website that demonstrates the internal
It was regulated by internal directives and it is not open to
regulation addressing the participation of employees on management
the public.
bodies.
None.
3.3. Human Resources Policy
The role of the board on developing and ensuring that the company has a
None.
succession plan for the key management positions
human resource policy covering equal opportunities and hiring principles. Career > Being Part of Our Team
Also provide a summary of relevant parts of the human resource policy.
Whether the company provides an employee stock ownership program There isn’t an employee stock ownership program.
human resource policy covering discrimination and mistreatments and the
Career > Our Human Rights Policy
measures to prevent them. Also provide a summary of relevant parts of the
human resource policy.
The number of definitive convictions the company is subject to in relation to The information is under Article 9 of the Annual Report of
health and safety measures Board of Directors.
3.5. Ethical Rules and Social Responsibility
The name of the section on the corporate website that demonstrates the Investor Relations > Corporate Governance > Ethical
code of ethics Principles
The name of the section on the company website that demonstrates the
corporate social responsibility report. If such a report does not exist, provide Investor Relations > Corporate Governance
the information about any measures taken on environmental, social and >Sustainability
corporate governance issues.
Any measures combating any kind of corruption including embezzlement
and bribery


4. BOARD OF DIRECTORS-I
4.2. Activity of the Board of Directors
Date of the last board evaluation conducted 11/02/2020
Whether the board evaluation was externally facilitated No
Whether all board members released from their duties at the GSM Yes
It was resolved at the meeting of the Board of Directors of our
Company, held on 26.04.2019 that; Haluk GÖRGÜN shall be
appointed as the Chairman of the Board of Directors, Mustafa
Name(s) of the board member(s) with specific delegated duties and
Murat ŞEKER shall be appointed as the Vice Chairman and
authorities, and descriptions of such duties
Haluk GÖRGÜN and Mustafa Murat ŞEKER shall be appointed
as the Managing Members. The details regarding the context
of the authorities are included in the articles of association.
Number of reports presented by internal auditors to the audit
15
committee or any relevant committee to the board
Specify the name of the section or page number of the annual report
The information is under Article 3/b of the Annual Report of
that provides the summary of the review of the effectiveness of
Board of Directors.
internal controls
Name of the Chairman Prof. Dr. Haluk GÖRGÜN
Name of the CEO Prof. Dr. Haluk GÖRGÜN
If the CEO and Chair functions are combined: provide the link to
the relevant PDP announcement providing the rationale for such None.
combined roles
Link to the PDP notification stating that any damage that may
be caused by the members of the board of directors during the
discharge of their duties is insured for an amount exceeding 25% of
the company’s capital
The name of the section on the corporate website that demonstrates
None.
current diversity policy targeting women directors
The number and ratio of female directors within the Board of
0
Directors


Composition of Board of Directors
Whether
Whether The Director
Whether the
She/He is Has At Least
Whether Link to PDP Notification Independent
Name, The First the Director 5 Years’
Whether Executive Independent That Includes The Director
Surname of Election Date Who Ceased Experience
Director Or Not Director Or Independency Considered By
Board Member To Board to Satisfy The On Audit,
Not Declaration The Nomination
Independence Accounting
Committee
or Not And/Or
Finance Or Not
Haluk Not
Executive 15/03/2017 - Not considered No Yes
GÖRGÜN independent
Mustafa Murat Not
Non-executive 15/05/2013 - Not considered No Yes
ŞEKER independent
https://www.kap.org.
Mehmet ARIK Non-executive Independent 02/04/2018 Considered No Yes
tr/en/Bildirim/748654
Ercümend https://www.kap.org.
Non-executive Independent 31/03/2016 Considered No Yes
ARVAS tr/en/Bildirim/748654
Mehmet Fatih Not
KACIR independent
Alpaslan Not
KAVAKLIOĞLI independent
Not
Salih KUL Non-executive 26/04/2019 - Not considered No Yes
independent
https://www.
İbrahim
Non-executive Independent 15/03/2017 kap.org.tr/en/ Considered No Yes
ÖZKOL
Bildirim/7486540
Celal Sami Not
TÜFEKCİ independent


4. BOARD OF DIRECTORS-II
4.4. Meeting Procedures of the Board of Directors
Number of physical board meetings in the reporting period (meetings in person) 34
Director average attendance rate at board meetings 91%
Whether the board uses an electronic portal to support its work or not Yes
Number of minimum days ahead of the board meeting to provide information to
3
directors, as per the board charter
The name of the section on the corporate website that demonstrates information It was regulated by internal directives and it is
about the board charter not open to the public.
There are no limitations for the members of
Number of maximum external commitments for board members as per the policy the Board of Directors regarding them to carry
covering the number of external duties held by directors duties outside the company, except the duties
that are subject to prohibition of competition.
4.5. Board Committees
Page numbers or section names of the annual report where information about the
Report > Number of Committees Formed in the
board committees are presented.
Board of Directors with Their Structures and
Independency title.
The working principles of the committees are
Link(s) to the PDP announcement(s) with the board committee charters not disclosed on PDP, yet they are presented at
the end of the Annual Report.

Composition of Board Committees-I
Name Of Committees Whether

Name-Surname of Whether Board Member
Names Of The Board Committees Defined As “Other” In The Committee Chair
Committee Members Or Not
First Column Or Not
Audit Committee - İbrahim ÖZKOL Yes Board member

Audit Committee - Ercümend ARVAS No Board member
Audit Committee - Mehmet ARIK No Board member
Corporate Governance Committee - Ercümend ARVAS Yes Board member
Corporate Governance Committee - Celal Sami TÜFEKCİ No Board member
Corporate Governance Committee - Salih KUL No Board member
Corporate Governance Committee - Pınar ÇELEBİ No Not board member
Committee of Early Detection of Risk - Mehmet ARIK Yes Board member
Committee of Early Detection of Risk - Salih KUL No Board member

4. BOARD OF DIRECTORS-III
4.5. Board Committees-II
The information is in the Annual Report > Corporate
Specify where the activities of the audit committee are presented in
Governance Principles Compliance Report > Number of
your annual report or website (Page number or section name in the
Committees Formed in the Board of Directors with Their
annual report/website)
Structures and Independency title.
Specify where the activities of the corporate governance committee are
presented in your annual report or website (Page number or section
name in the annual report/website)
Specify where the activities of the nomination committee are presented
The duties of the nomination committee is carried by the
in your annual report or website (Page number or section name in the
Corporate Governance Committee.
annual report/website)
Specify where the activities of the early detection of risk committee are
Specify where the activities of the remuneration committee are
The duties of the remuneration committee is carried by the
Corporate Governance Committee.
4.6. Financial Rights
Specify where the operational and financial targets and their
The information is given under Article 6 of the Report of Board
achievement are presented in your annual report (Page number or
of Directors.
section name in the annual report)
Specify the section of website where remuneration policy for executive
Investor Relations > Corporate Governance > Policies title.
and non-executive directors are presented.
Specify where the individual remuneration for board members and
The information is given under Article 3/a of the Report of
senior executives are presented in your annual report (Page number or
Board of Directors.
section name in the annual report)


Composition of Board Committees-II
Name Of The Percentage The Number of

The Percentage The Number Of
Committees Of Independent Reports on its
Names Of The Board Committees Of Non-executive Meetings Held In
Defined As “Other” Directors In The Activities Submitted
Directors Person
In The First Column Committee to the Board
Audit Committee - 100% 100% 4 7
Corporate Governance Committee - 75% 25% 4 3
Committee of Early Detection of Risk - 100% 50% 6 7

ASELSAN ELEKTRONİK SANAYİ VE TİCARET A.Ş. SIGNATURE SECTION OF ANNUAL
BETWEEN 1 JANUARY – 31 DECEMBER 2019
Prof. Dr. Haluk GÖRGÜN Mustafa Murat ŞEKER

Chairman of the Board of Directors and CEO Vice Chairman of the Board of Directors
(He did not attend the meeting.)
Prof. Dr. Mehmet ARIK Prof. Dr. Ercümend ARVAS Mehmet Fatih KACIR
Member of the Board of Directors Member of the Board of Directors Member of the Board of Directors
Prof. Dr. İbrahim ÖZKOL Alpaslan KAVAKLIOĞLU Dr. Celal Sami TÜFEKCİ
Member of the Board of Directors Member of the Board of Directors Member of the Board of Directors
Salih KUL

INDEPENDENT AUDITOR’S REPORT ON THE MANAGEMENT’S ANNUAL REPORT
TO THE BOARD OF DIRECTORS

ASELSAN ELEKTRONİK SANAYİ VE TİCARET ANONİM ŞİRKETİ
Opinion
We have audited the annual report of Aselsan Elektronik Sanayi ve Ticaret Anonim Şirketi (“the Company”) and its subsidiaries (“the Group”) for the
period of 1 January 2019 – 31 December 2019.
In our opinion, the consolidated financial information provided in the annual report of the Board of Directors and the discussions made by the
Board of Directors on the situation of the Group are presented fairly and consistent, in all material respects, with the audited full set consolidated
financial statements and the information we obtained during the audit.
Basis for Opinion

We conducted our audit in accordance with standards on auditing as issued by the Capital Markets Board of Turkey and Independent Auditing
Standards which are part of the Turkish Auditing Standards as issued by the Public Oversight Accounting and Auditing Standards Authority of
Turkey (POA). Our responsibilities under those standards are further described in the Auditors Responsibilities for the Audit of the Annual Report
section of our report. We are independent of the Group in accordance with the Code of Ethics for Independent Auditors (Code of Ethics) as issued
by the POA, and we have fulfi lled our other ethical responsibilities in accordance with the Code of Ethics. We believe that the audit evidence we
have obtained is suffi cient and appropriate to provide a basis for our opinion.
Our Auditor’s Opinion on the Full Set Consolidated Financial Statements

We have expressed an unqualified opinion in our auditor’s report dated February 11, 2020 on the full set consolidated financial statements of the
Group for the period of 1 January 2019 – 31 December 2019.
The Responsibility of the Board of Directors on the Annual Report

In accordance with Articles 514 and 516 of the Turkish Commercial Code 6102 (“TCC”) and the provisions of the Communiqué II-14.1 on the
Principles of Financial Reporting in Capital Markets” (“the Communiqué”) of the Capital Market Board (“CMB”), the management of the Group is
responsible for the following items:
a) Preparation of the annual report within the first three months following the balance sheet date and submission of the annual report to the general
assembly.
b) Preparation and fair presentation of the annual report; refl ecting the operations of the Group for the year, along with its financial position in a
correct, complete, straightforward, true and honest manner. In this report, the financial position is assessed according to the consolidated financial
statements. The development of the Group and the potential risks to be encountered are also noted in the report. The evaluation of the board of
directors is also included in this report.
c) The annual report also includes the matters below:
• Subsequent events occurred after the end of the fiscal year which have signifi cance,
• The research and development activities of the Group,
• Financial benefits such as salaries and bonuses paid to the board members and to those charged governance, allowances, travel. accommodation
and representation expenses, financial aids and aids in kind, insurances and similar deposits.
When preparing the annual report, the board of directors takes into account the secondary legislative arrangements published by the Ministry of
Customs and Trade and related institutions.
Auditor’s Responsibilities for the Audit of the Annual Report

Our aim is to express an opinion, based on the independent audit we have performed on the annual report in accordance with provisions of
the Turkish Commercial Code and the Communiqué, on whether the consolidated financial information provided in this annual report and the
discussions of the Board of Directors are presented fairly and consistent with the Group’s audited consolidated financial statements and to prepare
a report including our opinion. The independent audit we have performed is conducted in accordance with the standards on auditing as issued
by the Capital Markets Board of Turkey. These standards require compliance with ethical provisions and the independent audit to be planned and
performed ta obtain reasonable assurance on whether the consolidated financial information provided in the annual report and the discussions of
the Board of Directors are free from material misstatement and consistent with the consolidated financial statements.
The name of the engagement partner who supervised and concluded this audit is Mehmet Nadi Abbasoğlu
Yeditepe Bağımsız Denetim ve YMM A.Ş.

(Associate Member of Praxity AISBL)
Mehmet Nadi Abbasoğlu

Partner

STATEMENT OF RESPONSIBILITY
İstanbul, 11 February 2020BORSA İSTANBUL A.Ş. Date: 11/02/2020

34467-Emirgan-İSTANBUL
No: AS011-2020-0003
ASELSAN ELEKTRONİK
SANAYİ VE TİCARET A.Ş.
BOARD OF DIRECTORS MEETING ON APPROVAL OF FINANCIAL TABLES AND ANNUAL REPORTS
DATE OF RESOLUTION: 11/02/2020

RESOLUTION NUMBER: 1067
STATEMENT OF RESPONSIBILITY AS PER SECTION TWO, ARTICLE 9 OF THE CAPITAL MARKETS BOARD COMMUNIQUÉ SERIAL NUMBERED II,
NUMBERED 14.1
We hereby declare that;

a) We have examined the consolidated balance sheet dated 31 December 2018 and comparative consolidated balance sheet dated 31 December
2019, consolidated income statement issued for the period 1 January 2018 - 31 December 2018 and comparative consolidated income statement
issued for the period 1 January 2019 - 31 December 2019, consolidated additional financial tables, all audited independently, notes dated 31
December 2019 and annual report of the Board of Directors issued for the period ending on 31 December 2019,
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
information 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,
Prof. Dr. İbrahim ÖZKOL

Audit Comittee
Chairman
(He did not attend the meeting.)
Prof. Dr. Ercümend ARVAS Prof. Dr. Mehmet ARIK Mehmet Fatih GÜÇLÜ
Audit Comittee Audit Comittee Chief Financial Officer
Member Member Vice President

ASELSAN BOARD of DIRECTORS
ASSESSMENT REPORT REGARDING COMMITTEE ACTIVITIES IN 2019
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 26.04.2019. 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 26.04.2019 following the Ordinary General Assembly Meeting; in accordance with the
Communiqué of CMB it was resolved that;
• Independent Member of Board of Directors İbrahim ÖZKOL shall be assigned as the chairman and Independent Member of Board of Directors
Ercümend ARVAS and Independent Member of Board of Directors Mehmet ARIK shall be assigned as members of the Audit Committee,
• Independent Member of Board of Directors Ercümend ARVAS shall be assigned as the chairman and Celal Sami TÜFEKCİ, Salih KUL and
pursuant to Capital Markets Board’s Communique on Corporate Governance numbered II-17.1, Investor Relations Manager Pınar ÇELEBİ, shall
be assigned as the members of Corporate Governance Committee,
• Independent Member of Board of Directors Mehmet ARIK shall be assigned as the chairman and Salih KUL shall be assigned as the member of
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 among the independent members of
the Board of Directors and Investor Relations Department executive is a member of the Corporate Governance Committee 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 on our Company website.
In 2019, each Board of Directors Committee fulfilled its duties and responsibilities and worked efficiently, with regard to Corporate Governance
Principles and their own work directives.
Audit Committee assembled 4 times with the participation of authorities from the financial audit company within the year 2019 on dates 26.02.2019,
07.05.2019, 06.08.2019 and 05.11.2019. 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 31.12.2018, 31.03.2019, 30.06.2019 and 30.09.2019 and their submission to Board of Directors.
• The discussion of 2018 dividend distribution proposal.
• Assessments regarding the election of the independent audit company which will carry the audit task in year 2019 and its submission to Board
of Directors.

ASELSAN BOARD of DIRECTORS
ASSESSMENT REPORT REGARDING COMMITTEE ACTIVITIES IN 2019
In order to maintain the efficiency of internal audit, coordination meetings were held with the Internal Audit Presidency to strengthen the
communication and establish direct and continuous communication between Audit Committee and Internal Audit Presidency. Audit Committee-
Internal Audit Presidency coordination meetings are the most important factor in communicating between Audit Committee and Internal Audit
Presidency and in this direction, 8 meetings were conducted on dates 22.01.2019, 20.02.2019, 13.03.2019, 21.05.2019, 16.07.2019, 16.09.2019,
14.10.2019 and 19.12.2019 within the year 2019.
Corporate Governance Committee assembled 4 times within the year 2019 on dates 28.01.2019, 24.06.2019, 22.07.2019 and 12.12.2019.
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:
• Corporate Governance Committee Evaluation Report,
• Preparation of ASELSAN Corporate Governance Principles Compliance Report and the submission of the report to Board of Directors,
• Independent Board Members selection process,
• Corporate Governance Rating,
• Preparation of Corporate Governance Committee Evaluation Report and the submission of the report to Board of Directors,
• Presentation regarding the compliance of ASELSAN Strategic Plan, Technology Roadmap and Master Plan by the Vice Presidency of Technology
and Strategy Management,
• Discussing the proposed amendments in the ASELSAN Ethical Principles Directive,
• Discussing the amendment of the ASELSAN Disciplinary Procedures and Practices Functor as a directive and updating the “ASELSAN Allowance
Directive” offered by the Vice Presidency of Corporate Governance as a functor.
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 Risk of Committee has the duties of identifying and assessing the risks that may affect ASELSAN from reaching
its goals; managing these risks in conformity with our company’s risk taking profile, reporting them, include them in the decision mechanisms and
in this direction, auditing and executing the activities for establishing internal control systems. For this reason, Early Detection and Management of
Risk Committee assembled 6 times within the year 2019 on dates 09.01.2019, 07.03.2019, 23.05.2019, 16.07.2019, 17.09.2019 and 26.11.2019.
The tasks carried out by Early Detection and Management of Risk Committee and assessment of Early Detection and Management of Risk
Committee are summarized below:
• “2018 Evaluation Report” was prepared and submitted to Board of Directors in January 2019.
• “Corporate Risk Evaluation Report” was prepared and submitted to Board of Directors in January 2019, March 2019, May 2019, July 2019,
October 2019 and November 2019. In the reports;
• Important risks of ASELSAN are evaluated and monitored. In order to track risk related events, risk indicators, risk classification, explanations,
ratings, risk reactions, owner/responsible, and preventive/reducing actions are included.
• Risk indicators and the risks that have higher levels than the warning level are included at the end of the report in order to draw the attention
of Board of Directors.
• Risk management chapters were prepared and included in the company annual report and the other reports prepared according to legislation.

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 Internal Audit Department (IAD): ASELSAN Department in charge of internal audit activities.
3.9 Executives: Persons having titles such as under Financial Managment Vice Presidency, Vice President, Director and Managers 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 evaluated by the Committee
and ubmitted to the Board of Directors,
5.1.1.4. 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 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 from Public Oversight Accounting and Auditing Standards Authority 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.
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 andundersigned by the ASELSAN’s authorized executives as
well as the statement ofresponsibility 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 IAD 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 IAD 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 IAD.

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.
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 IAD.
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
EK A--STATEMENT OF RESPONSIBILITY

STATEMENT OF RESPONSIBILITY
BORSA İSTANBUL A.Ş. Date: 11/02/2020

34467-Emirgan-İSTANBUL No: AS011-2020-0003
ASELSAN ELEKTRONİK
SANAYİ VE TİCARET A.Ş.
BOARD OF DIRECTORS MEETING ON APPROVAL OF FINANCIAL TABLES AND ANNUAL REPORTS
DATE OF RESOLUTION: 11/02/2020

RESOLUTION NUMBER: 1067
STATEMENT OF RESPONSIBILITY AS PER SECTION TWO, ARTICLE 9 OF THE CAPITAL MARKETS BOARD COMMUNIQUÉ SERIAL NUMBERED II,
NUMBERED 14.1
We hereby declare that;

a) We have examined the consolidated balance sheet dated 31 December 2018 and comparative consolidated balance sheet dated 31 December
2019, consolidated income statement issued for the period 1 January 2018 - 31 December 2018 and comparative consolidated income statement
issued for the period 1 January 2019 - 31 December 2019, consolidated additional financial tables, all audited independently, notes dated 31
December 2019 and annual report of the Board of Directors issued for the period ending on 31 December 2019,
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
information 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,
Mehmet Fatih GÜÇLÜ

Chief Financial Officer
Vice President
Prof. Dr. İbrahim ÖZKOL Prof. Dr. Ercümend ARVAS Prof. Dr. Mehmet ARIK
Audit Comittee Audit Comittee Audit Comittee
Chairman Member Member

ASELSAN ELEKTRONİK SANAYİ VE TİCARET A.Ş. 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.
3.6. Company: ASELSAN Elektronik Sanayi ve Ticaret A.Ş.
4.1. Turkish Commercial Code.

4.2. Capital Markets Board Regulations.
4.3. Corporate Governance Principles published by the Capital Markets Board
4.4. 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.
5.1.4. It shall review the changes suggested to the risk management systems by the Enterprise Risk and Process Management Department under
Finance Directorate as often as the agenda permits but 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.
5.1.7. The resolutions taken at the meetings shall be documented and undersigned by the Committee Members and archived by the Secretariat.

ASELSAN ELEKTRONİK SANAYİ VE TİCARET A.Ş. BOARD OF DIRECTORS’ EARLY
DETECTION AND MANAGEMENT OF RISK COMMITTEE WORK DIRECTIVES
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 duly archive
correspondences.
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 including the preparation of the report submitted to the Board of Directors shall be performed
by Enterprise Risk and Process Management Department under Finance 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 offer to
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 under the provision of the Board of Directors and coordinated with the General Manager, 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
These directives have been approved by the Board of Directors as per the resolution dated 29.11.2012 and numbered 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
The document shall be circulated as per ASELSAN PLAN A. It shall be published to all users via intranet and internet. The document shall be
circulated as per ASELSAN PLAN A. It shall be published to all users via intranet and internet.

ASELSAN ELEKTRONİK SANAYİ VE TİCARET A.Ş. 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.
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.

ASELSAN ELEKTRONİK SANAYİ VE TİCARET A.Ş. BOARD OF DIRECTORS’
CORPORATE GOVERNANCE COMMITTEE WORK DIRECTIVES
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 duly archive
correspondences.
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.
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
These directives have been approved by the Board of Directors as per the resolution dated 23.02.2006 and numbered 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
The document shall be circulated as per ASELSAN PLAN A. It shall be published to all users via intranet and internet.

PROFIT DISTRIBUTION PROPOSAL
ASELSAN ELEKTRONİK SANAYİ VE TİCARET A.Ş. 2019 DIVIDEND DISTRIBUTION TABLE (TL)
1- Issued Capital 1.140.000.000,00
2- First Legal Reserve (According to Legal Records) 221.616.368,62
Information regarding the privileges on profit distribution as per the Company Articles of
There are no privileges.
Association, if there are any
According to Capital Markets Board According to the Legal Records
3- Profit for the Period 3.308.531.452,00 3.686.183.140,00
4- Taxes Payable (+) (1)
44.141.945,00 0,00
5- NET PROFIT FOR THE PERIOD (=) (2) 3.340.447.007,00 3.686.183.140,00
6- Accumulated Loss (-) 0,00 0,00
7- First Legal Reserve (-) 6.383.631,38 6.383.631,38
8- NET DISTRIBUTABLE PROFIT FOR THE PERIOD (=) 3.334.063.375,62 3.679.799.508,62
9- Donations Made throughout the Year (+) 550.000,00
10- Net Distributable profit for the period, donations included 3.334.613.375,62
11- First Dividend to Shareholders 1.197.000.000,00 1.197.000.000,00
- Cash 57.000.000,00 57.000.000,00
- Non paid-up share 1.140.000.000,00 1.140.000.000,00
- Total 1.197.000.000,00 1.197.000.000,00
12- Dividends distributed to Preferred Shareholders 0,00 0,00
13- Dividends distributed to; 0,00 0,00
- Members of the Board of Directors 0,00 0,00
- Employees 0,00 0,00
- Others than Shareholders 0,00 0,00
Dividends distributed to Holders of Usufruct Right
14-
Certificates 0,00 0,00
15- Second Dividend to Shareholders 278.000.000,00 278.000.000,00
16- Secondary Legal Reserve 27.800.000,00 27.800.000,00
17- Statutory Reserve 0,00 0,00
18- Special Reserve 0,00 0,00
19- EXTRAORDINARY RESERVE 1.831.263.375,62 2.176.999.508,62
20- Other resources to be distributed 0,00 0,00
Our Company has gained Continuing Operations Tax Income valuing TL 44.141.945,- within the scope of the Law regarding the Support of Research and Development Activities,
(1)
numbered 5746.
The net profit for the period attributable to equity holders of the parent valuing TL 3.340.447.007,- is used, since TL 12.226.389,- of the net profit for the period corresponds to non-
(2)
controlling interests, where our Company’s net profit for the period is TL 3.352.673.396,-.
It was decided at the Board of Directors meeting dated 25 February 2020 that; of the net profit generated by our company from its 2019 activities;
• In accordance with Article 519/(1) of the Turkish Commercial Code, General Legal Reserves amounting to TL 6.383.631,38 is going to be
allocated,
• Out of net distributable profit to the shareholders for the period, calculated in the framework of the dividend distribution regulations and
decisions of the Capital Markets Board, gross, TL 335.000.000,- (Kuruş 29,38596 per share of TL 1 and 29,38596% on the basis of the capital)
(net TL 284.750.000,- Kuruş 24,97807 per share of TL 1 and 24,97807% on the basis of the capital) shall be distributed in the form of cash and TL
1.140.000.000,- shall be distributed as non paid-up share, which equals to 100% of the capital,
• In accordance with Article 519/(2) of the Turkish Commercial Code, General Legal Reserves amounting to TL 27.800.000,- is going to be allocated,
• The remaining profit is going to be allocated as Extraordinary Legal Reserves,
and distribution of the cash dividends to the shareholders are planned to be distributed as of July 17, 2020, October 16, 2020, and December 18,
2020 in 3 equal installments and the non paid-up share is to be distributed following the completion of the legal process shall be submitted to the
45th Ordinary General Assembly.

NOTES

ASELSAN A.Ş. is a Turkish Armed Forces Foundation company.
Mehmet Akif Ersoy Mahallesi 296. Cadde No: 16, 06200 Yenimahalle-Ankara, TÜRKİYE
Phone: +90 (312) 592 10 00 / Fax: +90 (312) 354 13 02 - 354 26 69
www.aselsan.com

2019 ASELSAN Annual Report 7443

Uploaded by

Copyright:

Available Formats

2019 ASELSAN Annual Report 7443

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

2019 ASELSAN Annual Report 7443

Uploaded by

Copyright:

Available Formats

PROVEN

16 Message from President,Chairman and CEO

54 Communications and Information Technologies Business Sector

136 Consolidated Statement of Financial Position

ASELSAN 2019 Annual Report 1

To be a reliable, competitively preferred, environment-friendly and human conscious technology firm

2 ASELSAN 2019 Annual Report

ASELSAN 2019 Annual Report 3

OUR SHAREHOLDERS (%)

TURKISH ARMED FORCES FOUNDATION (TAFF)

OUR SHAREHOLDERS SHARE AMOUNT (TL) SHARE (%)

TAFF 845,825,624.46 74.20

Quoted on the BIST 294,174,375.54 25.80

Total 1,140,000,0000 100.00

4 ASELSAN 2019 Annual Report

12 PUBLIC AND PRIVATE

ASELSAN 2019 Annual Report 5

MICROELECTRONICS R&D DESIGN AND TÜYAR MICROELECTRONICS INDUSTRY

ASELSAN KONYA WEAPON SYSTEMS INC.

ASELSANNET ELECTRONIC AND TEKNOHAB INC. ASELSAN BİLKENT MICRO NANO

6 ASELSAN 2019 Annual Report

ASPİLSAN ENERGY INDUSTRY AND TRADE

LOCAL SUBSIDIARIES, AFFILIATES AND MARKETABLE SECURITIES

ASELSAN 2019 Annual Report 7

ASELSAN MIDDLE EAST PRIVATE ASELSAN BAKU COMPANY

GLOBAL SUBSIDIARIES, AFFILIATES, BRANCHES AND OFFICES

8 ASELSAN 2019 Annual Report

IGG ASELSAN INTEGRATED SYSTEMS LLC.

SAUDI DEFENCE ASELSAN

ASELSAN 2019 Annual Report 9

10 ASELSAN 2019 Annual Report

Cabinet to the CEO Legal Affairs

Financial Management Corporate Management Vice

Technology & Strategy Business Development &

ASELSAN 2019 Annual Report 11

BACKLOG NET SALES SALES PER EMPLOYEE

NET CASH PROVIDED BY

EBITDA MARGIN EBITDA NET CASH

12 ASELSAN 2019 Annual Report

SUMMARY BALANCE SHEET (TL million) 2018 2019

Total Assets 19,474 25,633

Tangible Assets 1,336 1,574

Intangible Assets 1,082 1,277

Total Equity 10,177 13,569

SUMMARY INCOME STATEMENT (TL million) 2018 2019

Net Sales 9,009 13,013

EBITDA 1,896 2,854

Net Profit for the Year 2,319 3,353

MAIN INDICATORS 2018 2019

R&D Expenses (TL million) 2,163 2,975

Sales per employee (TL thousand) 1,582 1,914

EDITDA Margin (%) 21 22

Net Cash Provided by Operations (TL million) 272 851

Cash and Cash Equivalents (TL million) 3,116 3,514

ASELSAN 2019 Annual Report 13

NUMBER OF PERSONNEL EDUCATIONAL BACKGROUND (%)

Total R&D Expenditure (TL million)

14 ASELSAN 2019 Annual Report

NUMBER OF PROJECTS COLLABORATION VALUE OF PROJECTS (USD MILLION)

COLLABORATION WITH DOMESTIC SUPPLIERS