2020 year-end financial results of ASELSAN have been announced. The company's revenues increased by 24% in 2020 compared to the previous year and exceeded 16 Billion TL. The net profit of the company reached 4.5 Billion TL with an increase of 33% compared to the previous year. ASELSAN, which increased its receivable collections significantly with the revenues from exports, completed the year with a strong cash position.
ASELSAN, the world’s 48th largest defence company with its sales and production network spanning over 12 countries in 3 continents, completed 2020 with record results. The company’s consolidated net sales increased by 24% compared to the previous year and exceeded 16 Billion TL. The company’s Earnings Before Interests, Taxes, Depreciation and Amortization (EBITDA) increased by 38% to its all-time high of 4 Billion TL. The EBITDA margin exceeded expectations and reached its highest level in the company’s history with 24.4%.
1 Billion Dollar Export Backlog Threshold is Exceeded
ASELSAN’s acceleration in exports continued in 2020 when the mobility between countries stopped entirely due to the pandemic. In 2020, the company signed contracts with six new countries for a total amount of 446 Million Dollars and contributed to our country’s export volume. With the contribution of new orders from abroad, export backlog reached its historical peak by exceeding the 1 Billion Dollar threshold. The total backlog is 9.5 Billion Dollars.
ASELSAN Did Not Stop During the Pandemic!
ASELSAN Chairman, President and CEO Prof. Dr Haluk GÖRGÜN said the following in his evaluation of the 2020 year-end financial results;
“Being aware of the responsibility we bear for our country, in 2020, when the negative effects of the pandemic are felt in every field, our motto was “ASELSAN does not stop, cannot stop!” and we did not stop our activities for a single day. We have implemented a beneficial decision mechanism within ASELSAN since the pandemic’s first effects began to appear. While observing the needs and expectations of our government, on the one hand, we also tried to take all kinds of precautions for the health of our employees. In 2020, ASELSAN continued its activities in technology and R&D by making R&D expenditures of 3.3 Billion TL. We mobilized all our financial and operational resources to ensure that more than 4 thousand suppliers, who provide products and services to ASELSAN, are not adversely affected by the pandemic. Our high revenue and profitability figures by the end of 2020 are the result of these management strategies that we have implemented with the awareness of being a family.
We Achieved Development with Our Values
The pandemic’s new conditions have entirely reshaped the ways of doing business around the world that have been accustomed to for decades. The fact that this change took place at an unaccustomed speed negatively affected unprepared companies in terms of infrastructure and human resources. ASELSAN has been a change leading company for many years and invested in qualified human resources, which it sees as its most valuable asset. Our human assets of ASELSAN came together around our company values consisting of Unity, Excellence, Development, Innovation and Trust. They formed the driving force of our development in the challenging conditions of 2020. With approximately 1,500 employees, who joined our ASELSAN family in 2020, we further strengthened this ring of values and completed the year with the highest employment rate of all time.
ASELSAN Is Growing Rapidly Globally
As ASELSAN, we continue to expand our global activity rapidly with our sales and production network spanning over 12 countries on three continents. We are pleased to start gaining from our global leadership vision that we initiated two years ago. 2020 has been a very productive year in which the highest export receivable collection was made, most export orders were received, and the number of export countries was increased to 70. As part of our strategy to resolve our processes with our overseas customers in the country where they are located, in a timely and effective manner, we established companies, opened offices and branches in 3 countries last year. With these breakthroughs, our total number of offices and departments at home and abroad reached 28.
Cash Management Approach Covering the Whole Ecosystem Was Adopted
Prof. Dr Haluk GÖRGÜN stated that in 2020 they worked with an understanding that prioritized the financial needs of ASELSAN and its affiliates and more than 4 thousand suppliers. Prof. Dr GÖRGÜN said that they had reduced the liquidity pressure caused by the pandemic in the ecosystem by paying out more than 12 Billion TL to their business partners last year. The share of local companies in ASELSAN’s total procurement increased to 73% in 2020. Nine out of every ten orders placed were forwarded to SMEs. While ASELSAN completed the year with a record level of cash collection, the company closed the year with a net cash position thanks to the successful working capital management throughout the year. The company’s cash level by the year-end stood at 4 Billion TL.
Our Country’s Goals Are Our Goals
ASELSAN Chairman, President and CEO Prof. Dr Haluk GÖRGÜN concluded his statements with the following words. “From defence electronics to health, from communication systems to financial Technologies, from energy and transportation systems to space technologies; we proudly observe the benefits of our products and services for our nation in every field we operate. When pandemic conditions were getting worse, our ventilators, which were offered to our nation’s usage, are one of these products. ASELSAN, together with the members of the consortium it cooperates with, produced more than 20,000 ventilators in a short time and provided significant support to our health community in the fight against Covid-19. Our ventilators were made available to our friend and brother countries under the coordination of the Turkish government.
As ASELSAN, our goal is to reduce our country’s dependence on imports by producing high-standard technological products and services in all areas we operate. With its more than 45 years, high engineering skills and financial strength, ASELSAN can achieve these goals. We will continue to work diligently to carry ASELSAN, which is crucial to the Turkish nation and entrusted to us, beyond these successful results. I want to thank all of our stakeholders, especially our employees, for their trust in us and always being with us, and I hope that our success will continue to increase. “
