CELEBI GROUND HANDLING ANNUAL REPORT 2018

ÇELEBİ HAVA SERVİSİ A.Ş. 98 Çelebi Ground Handling 2018 Annual Report NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018 (Amounts expressed in Turkish Lira (“TL”) unless otherwise indicated.) Convenience Translation into English of Consolidated Financial Statements Originally Issued in Turkish NOTE 16 - DEFERRED INCOME Short-term deferred income December 31, 2018 December 31, 2017 Other advances received 14.506.622 9.573.837 Deferred income 1.191.949 1.191.949 15.698.571 10.765.786 Long-term deferred income December 31, 2018 December 31, 2017 Deferred income 1.036.334 2.228.283 1.036.334 2.228.283 NOTE 17 - LIABILITIES FOR EMPLOYEE BENEFITS December 31, 2018 December 31, 2017 Wages and salaries payable 16.694.157 12.413.866 Bonus payable accruals 16.802.024 10.478.790 Social security withholdings payable 5.715.061 5.316.207 39.211.242 28.208.863 NOTE 18 - EQUITY Share Capital As of December 31, 2018, the authorized share capital of the Group is TL 24.300.000 comprising of TL 2.430.000.000 registered shares with a face value each of 1 Kr (December 31, 2017: 2.430.000.000). At December 31, 2018 and December 31, 2017, the shareholding structure of the Group is stated in historical amounts below: December 31, 2018 December 31, 2017 Shareholders Amount Share % Amount Share % Çelebi Havacılık Holding A.Ş. (ÇHH) 21.236.463 87,39 19.042.115 78,36 Other 3.063.537 12,61 5.257.885 21,64 24.300.000 100,00 24.300.000 100,00 Restricted Reserves The legal reserves consist of first and second reserves, appropriated in accordance with the Turkish Commercial Code. The Turkish Commercial Code stipulates that the first legal reserve is appropriated out of statutory profits at the rate of 5% per annum, until the total reserve reaches 20% of the Company’s paid-in capital. The second legal reserve is appropriated at the rate of 10% per annum of all cash distributions in excess of 5% of the paid-in capital. Under the Turkish Commercial Code, the legal reserves can be used only to offset losses and are not available for any other usage unless they exceed 50% of paid-in capital.