Esteemed Shareholders, 50 years ago, when our country began to take important steps toward greater industrialization, Otokar set out in a small workshop in Bahçelievler with the idea of manufacturing "Turkish-made vehicles", and manufactured Turkey’s first bus. And having manufactured Turkey's first intercity bus, public transport minibus, and Europe’s first small bus, Otokar eventually achieved a significant position in the automotive industry, not simply witnessing a new era of industrialization, but pioneering it. Otokar walked a path to rapid growth, which begun when it joined the Koç Group in the 1970s, and continued with further progress in the defense industry. This featured the manufacture of Turkey's first armoured tactical vehicle,and the exporting of military vehicles. In the 2000's, our Company started to concentrate its efforts on commercial vehicles. By 2010, Otokar had already achieved numerous firsts in the area of operation, having made the impossible possible. We have touched the lives of millions of people over the course of 50 years, becoming a regular part of their day. Throughout these years, millions of passengers have travelled in our vehicles, while tons of cargo have been carried on our trailers, all helping to turn the wheels of the nation. We have manufactured thousands of vehicles that protect the soldiers who risk their lives for their country; we have added value and created employment for Turkey, and realized goals that many considered impossible. And so today, we are both happy and proud to witness the 50th anniversary of our Company, as well as celebrate its many achievements. Esteemed Shareholders, Over the past 50 years Otokar has witnessed uncertain times, worked hard to maintain its growth under diverse economic conditions, and taken advantage of its experiences while growing. After starting its journey in 1963 with licensed production, Otokar, foreseeing the future, developed its own designs. Thus, in the 1970s, when its license agreement expired, it rebuilt its success on the strength of proprietary products. As an independent enterprise developing its own products and technology, our Company has always focused on the satisfaction of its customers, partners, and employees. We confidently continue on the path we have laid out by embracing these values. Keenly aware of our responsibilities toward you, our customers, and employees, we always seek the best. And we are all the more happy to see our Company's efforts reflected positively in our business results. I am delighted to share with you the good news of our closing of yet another successful year. In 2012 we registered growth in turnover of 13%, exceeding our TL 1 billion target. Maintaining our growth, we achieved US$ 146 million in exports, marking the highest figure of the past 10 years. And as a result of our efficiency efforts, we registered TL 76.4 million in profit. In 2012, while growth in the heavy commercial vehicles segment decelerated, the bus market grew by 1%, and Otokar grew four times faster than the overall market, to become the best-selling brand in Turkey for the third year. Thanks to the accomplishments of our branch in Europe, our main bus market, our Company's export volume in the total bus segment increased by 66%. Our sales income increased significantly after delivering the orders we had received from the defense industry, and we received new orders. We are proud to have reached an important stage in the Altay Main Battle Tank Project, Turkey's major land systems project. This project is closely followed by export markets. We commenced the testing of the two preliminary prototypes. Due to the importance placed on national projects, R&D efforts began to hold significance for the Turkish defense industry. In 2012, we allocated 5% of our total turnover to R&D investments, greatly exceeding the average figures observed in our country. These investments have amounted to TL 188 million over the past 10 years, thus we were able to utilize the resources of our country and manufacture Turkish-made vehicles much faster. In 2012 we opened Turkey's first Tank Testing Center, the most modern center of its kind in the world, and servicing the needs of the industry. We also added Turkey's first electric bus to our product portfolio, and this vehicle began its trial run with the Istanbul Municipality. Esteemed Shareholders, Otokar has the scope for further achievements, thanks to the growth potential of the segments it operates in, as well as its own strengths. Exciting new projects await us in our 50th year. We cannot wait to see our 750 Otokar buses carry Istanbul passengers in 2013. We aim to sign important contracts in the commercial vehicle segment, which we again expect to emerge amid fresh opportunities and developments. And while our armoured vehicles actively serve, we will continue to evaluate new opportunities that benefit Otokar. With your support, we will work to build Otokar's next 50 years, and to create a global brand in the global arena that our grandchildren will be proud of. In reaching these goals, I hope that our 50th year brings prosperity to all our shareholders, customers, business partners, and employees. I also hope to close the year 2013 with successful results. Respectfully Yours, Kudret Önen Chairman of the Board of Directors Last Update: 19 February 2014 © 2005-2014 Otokar Otomotiv ve Savunma Sanayi A.S. Confidentiality and Copyrights Google+ Site Creation & Technology by MagiClick Digital Solutions