CELEBI GROUND HANDLING ANNUAL REPORT 2018

ÇELEBİ HAVA SERVİSİ A.Ş. 99 Çelebi Ground Handling 2018 Annual Report Convenience Translation into English of Consolidated Financial Statements Originally Issued in Turkish 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.) In accordance with the communique numbered II-14,1 “Communiqué on the Principles of Financial Reporting In Capital Markets” (“the Communique”) published in Official Gazette dated June 13, 2013 numbered 28676,the “Paid-in capital”, “Restricted reserves” and “Share premiums” should be stated at their amounts in the legal records. The differences arising in the valuations during the application of the communiqué (such as differences arising from inflation adjustment): • If the difference is arising from the valuation of “Paid-in capital” and not yet been transferred to capital should be classified under the “Inflation adjustment to share capital”; • If the difference is arising from valuation of “Restricted reserves” and “Share premium” and the amount has not been subject to dividend distribution or capital increase, it shall be classified under “Retained earnings”, Other equity items shall be carried at the amounts calculated based on TAS. Inflation adjustment to share capital have no other use other than being transferred to share capital. As of December 31, 2018, the amount of restricted reserves is TL 50.630.456 (December 31, 2017: TL 43.097.456). Listed companies distribute dividend in accordance with the Communique No. II-19.1 issued by the CMB which is effective from February 1, 2015. Companies distribute dividends in accordance with their dividend payment policies settled and dividend payment decision taken in general assembly and also in conformity with relevant legislations. The communique does not constitute a minimum dividend rate. Companies distribute dividend in accordance with the method defined in their dividend policy or articles of incorporation. In addition, dividend can be distributed by fixed or variable instalments and advance dividend can be paid in accordance with profit on interim financial statement of the Company. In accordance with the Turkish Commercial Code, unless the required reserves and the dividend for shareholders as determined in the article of association or in the dividend distribution policy of the company are set aside, no decision may be made to set aside other reserves, to transfer profits to the subsequent year or to distribute dividends to the holders of usufruct right certificates, to the members of the board of directors or to the employees; and no dividend can be distributed to these persons unless the determined dividend for shareholders is paid in cash. At the Ordinary General Assembly Meeting of the Group held on April 19, 2018, it was resolved; to distribute the full amount of net profit for the period constituted in the consolidated financial statements of the Group amounting to TL 85.361.608 as of December 31, 2018 and to distribute TL84.078.000 of retained earnings in accordance with the local regulations of CMB, to the legally obligated tax payers and to the limited taxpayer who are receiving dividend by an office resident in Turkey or by resident representative, for an amount of TL 3,1500 gross dividend corresponding to per share with a nominal amount of TL 1.00 and for an amount of TL 2,6775 net dividend corresponding to per share with a nominal amount of TL 1.00. The remaining TL 1.283.608 of the net profit for the period is transferred to extraordinary reserves.Cash dividend payments were completed as of April 24, 2018. NOTE 19 - REVENUE AND COST OF SALES January 1- January 1- December 31, 2018 December 31, 2017 Ground handling services 874.188.801 590.466.433 Revenue from cargo and warehouse services 434.713.876 305.854.137 Rental revenue not related to aviation 45.898.241 29.466.378 Revenue in the context of TFRIC 12 4.819.989 14.232.822 Less: Returns and discounts (25.350.853) (22.230.107) Revenue- net 1.334.270.054 917.789.663 Cost of sales (877.169.122) (649.293.500) Gross profit 457.100.932 268.496.163