1 UNCLASSIFIED

4 June 2014

2 UNCLASSIFIED

TURKEY

3 COMMERCIAL IN CONFIDENCE

4 UNCLASSIFIED

36.1

151.7

230.5

827.2

2002 2013 2002 2013

%259 %320

22

16

(Billion US $)

2023 Target :

To be in Top 10 Country

2023 Target :

500 Bn $

(Billion US $)

IMF 2013 www.economy.gov.tr

5 UNCLASSIFIED

2013

1.400

2007

REVENUES

2007

EXPORTS

2013

% 65 % 127

3.022

5.000

615

Bn US $

6 UNCLASSIFIED

Evolution of passenger traffic (1990–2030, RPM in billions)

1990 1995 2000 2005 2010 2015 2020 2025 2030

Forecast Historical

71,1%

28,9%

1990

58,2%

41,8%

2012

44,7%

55,3%

2030

North America, Europe

AsiaPacifc Africa LatAm and Middle East

9,000

8,000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

Source: Airline Monitor (June 2013)

7 UNCLASSIFIED

Turkish Airlines RPK Growth

Source: Turkish Airlines, Airline Monitor 1 In place since 2011

15,3%

6,8% 5,5%

7,4%

2,6%

(2,4)%

8,0%

6,0%

5,1%

15,4%

14,6%

19,1% 19,2%

13,3%

17,1%

19,5%

22,9%

26,6%

(5)%

0%

5%

10%

15%

20%

25%

30%

35%

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

World RPK growth THY RPK growth

Average: 6.0%

Average: 18.6%

THY RPK Growth is 3

times the avarage

world growth

8 UNCLASSIFIED

2005 2014 2006 2007 2008 2009 2010 2011 2012

145 Projects

(65 R&D)

HÜRKUŞ

HİK F-16

FX/TX

HELICOPTER

ANKA

C-130

T-38

ATAK

ANKA-

S

GÖKTÜRK-2

GÖKTÜRK-1

A400M

A350XWB

B787

JSF

MELTEM

ÖZGÜR

KARAYEL

BAYKAR

9 UNCLASSIFIED

VESTEL

10 UNCLASSIFIED

Aerospace Industry Cluster initiative

Kazan Aerospace Cluster

Government is creating an

Aerospace industry cluster

13,5 million sqm (inc. TAI)

SME1 cluster to support

future growth of aerospace

industry in Turkey

Cluster expected to

become operational by

2016

Benefits for TAI

Increase in outsourcing

possibilities

Closer relation with

suppliers

Incentives

Attractive tax benefits

available

1 Small and medium sized enterprises 2 Aerospace segment only

11 COMMERCIAL IN CONFIDENCE

SOME AVIATION

PLAYERS

AT A GLANCE

12 UNCLASSIFIED

13 UNCLASSIFIED

14 UNCLASSIFIED

15 UNCLASSIFIED

16 UNCLASSIFIED

Establishment : 1984

Shareholders : Turkish Armed Force Foundation &

Under Secretariat for Defence Industries

Turnover : 913 M $ (2013)

Exports : 634 M $ (2013)

Personnel : ~6000

Engineer : ~2000

AEROSPACE

Aerostructures Integrated Systems

AEROENGINES

JV with GE

17 UNCLASSIFIED

$8 M

$913 M

CO-PRODUCTION

ESTABLISMENT

MOD & SYSTEM INTEGRATION

1984/1985

1986

1990

1995

AERO

STRUCTURES

INDIGENOUS PRODUCT

DESIGN

SATELLITES

2010

2005

1986 2005

SERIAL PRODUCTION OF

INDIGENOUS PLATFORMS

2014

2013

18 UNCLASSIFIED

Countries & Governments OEMs Tier 1 suppliers

In

tro

du

ctio

n to TA

I

19 UNCLASSIFIED

Medium Altitude Long

Endurance (MALE)

ŞİMŞEK

High Speed Target Drone

TURNA - Target Drone

20 UNCLASSIFIED

Advanced Trainer Aircraft

HIGHER SPEED

SUPERIOR LETHALITY

GREATER AGILITY

WIDER COMBAT RADIUS

F-16

PRATT WHITNEY

PT-6A-68T

Future Combat Aircraft

21 UNCLASSIFIED

T129

Attack

Helicopter

Light Twin Helicopter

Development

22 UNCLASSIFIED

A400M

INDUSTRIAL PARTNER

F-35/JSF

SOLE SOURCE OUTSIDE USA

23 UNCLASSIFIED

SOLE SOURCE SUPPLIER

Bombardier C Series Aircraft - Fixed Trailing Edge Manufacturing Program

24 UNCLASSIFIED

Airbus - A320 Series Section 18

SOLE SOURCE SUPPLIER

SOLE SOURCE SUPPLIER

Airbus - A330 Rudder

Airbus - A350 XWB Aileron

SOLE SOURCE - RISK SHARING PARTNER

25 UNCLASSIFIED

AgustaWestland - AW139 Fuselage

MAIN SUPPLIER

Boeing - B787

SOLE SOURCE SUPPLIER

Elevator Cargo Barrier Body Seal

SINGLE AND TWIN AISLE AIRCRAFT AEROSTRUCTURES

Boeing – B737, B747, B767, B777

(Mnfg.) (Design+Mnfg.) (Design+Mnfg.)

26 UNCLASSIFIED

Göktürk-1

High Resolution Earth Observation and

Reconnaissance Satellite

Göktürk-2

Earth Observation and Reconnaissance Satellite

Launched in December 2012.

Göktürk-3

SAR Earth Observation Satellite

Preliminary-Design Phase

27 COMMERCIAL IN CONFIDENCE