CELEBI GROUND HANDLING ANNUAL REPORT 2018

ÇELEBİ HAVA SERVİSİ A.Ş. 100 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 20 - EXPENSES BY NATURE January 1- January 1- December 31, December 31, 2018 2017 Personnel expenses (502.410.164) (374.124.672) Payments to authorities and terminal managements (*) (188.750.102) (151.031.749) Technical maintenance of equipment, fuel and security expenses (91.343.181) (67.546.786) Consultancy expenses (****) (89.369.983) (59.621.827) Depreciation and amortization expense (66.961.944) (38.492.674) Expenses within the scope of TFRIC 12 (**) (11.266.841) (21.087.703) Insurance expense (6.176.302) (5.151.012) Travel and transportation expense (8.046.730) (4.783.458) Cost of sales (***) (2.650.349) (2.916.300) Other expenses (96.938.781) (49.930.285) (1.063.914.377) (774.686.466) (*) Payments to authorities and terminal managements are composed of royalty, rental facilities and check-in desks within the airport area, working licenses and similar expenses, office rental expenses and other miscellaneous expenses related to utilization of office area. (**) Aforementioned expenses are composed of construction costs calculated in accordance with TFRIC 12 and provisions for other liabilities within the scope of concession agreement. (***) Aforementioned expenses are composed of sales and utilization cost of de-icing and spare part inventories. (****) TL 63.556.968 of the consultancy expenses are comprised of share of holding company expenses. (31.12.2017: TL 45.463.882) NOTE 21 - GENERAL ADMINISTRATIVE EXPENSES January 1- January 1- December 31, December 31, 2018 2017 Consultancy expenses (85.500.532) (59.236.933) Personnel expenses (59.927.795) (41.853.677) Technical maintenance of equipment, fuel and security expenses (13.281.885) (6.657.930) Payments to authorities and terminal managements (*) (6.942.785) (5.564.660) Depreciation and amortization expense (7.574.834) (3.827.311) Travel and transportation expense (5.120.321) (3.432.889) Insurance expense (1.631.748) (731.106) Other expenses (6.765.355) (4.088.460) (186.745.255) (125.392.966) (*) Payments to authorities and terminal managements are composed of office rental expenses and other miscellaneous expenses related to utilization of office area. NOTE 22 - OTHER OPERATING INCOME January 1- January 1- December 31, December 31, 2018 2017 Foreign exchange gains from operating activities 163.441.577 11.968.502 Delay interest charge from operating activities 5.084.199 2.807.704 Provision reversal income 5.072.934 1.276.315 Income from insurance claims 1.378.783 314.795 Other incomes 19.205.610 6.154.018 194.183.103 22.521.334