CELEBI GROUND HANDLING ANNUAL REPORT 2018

ÇELEBİ HAVA SERVİSİ A.Ş. 108 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 Key management compensation: The Group has determined key management personnel as members of board of directors, general manager and vice general managers. Key management compensation includes salaries, bonuses, social security contributions and other benefits provided to key management of the Group: January 1- January 1- December 31, December 31, 2018 2018 Short-term key management compensation 16.771.185 12.520.801 16.771.185 12.520.801 NOTE 31 - FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT Financial risk management The Group focused to manage miscellaneous financial risks including changes in foreign currency exchange rates and interest rates because of activities of the Group. The Group purposes to minimize potential adverse effects arising from fluctuations in financial markets with overall risk management program. Risk management is carried out under policies approved by the Boards of Directors. Interest rate risk The Group is exposed to interest rate risk through the impact of rate changes on interest bearing liabilities and assets. These exposures are managed using natural hedges that arise from offsetting interest rate sensitive assets and liabilities. Interest rate positions of the Group at December 31, 2018 and December 31, 2017 are as follows: December 31, 2018 December 31, 2017 Fixed interest rate financial instruments Financial Assets 194.573.785 88.555.012 - Cash and cash equivalents 194.573.785 88.555.012 Financial Liabilities 511.343.407 202.688.006 Floating interest rate financial instruments Financial liabilities 210.471.021 138.664.800 If other variables are kept constant and the interest rates were 1% higher/lower, interest expense due to financial liabilities would have been TL 245.752 higher or lower at December 31, 2018. (December 31, 2017: TL 183.141). Expected repricing and maturity dates are not disclosed in an additional table because they are not different from contractual maturity dates for non-credit financial assets and liabilities. Credit risk Credit risk consists of cash and cash equivalents, bank deposits and receivables from customers exposed to credit risk. Ownership of financial assets involves the risk that counterparties may be unable to meet the terms of their agreements. The Group management meets these risks by restricting the average risk for each counterparty (excluding related parties) and receiving collateral if necessary. Explanations for credit risk are discloded in Note 7.