CELEBI GROUND HANDLING ANNUAL REPORT 2018

ÇELEBİ HAVA SERVİSİ A.Ş. 109 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.) Liquidity risk Cash flow generated through amount and term of borrowing back payments is managed by considering the amount of unreserved cash flow from its operations. Hence, on one hand it is possible to pay debts with the cash generated from operating activities if necessary and on the other hand sufficient and reliable sources of high quality loans are accessible. The Group has long-term financial liabilities amounted TL 488.025.051 as of December 31, 2018 (December 31, 2017: TL 282.516.358) (Note 7). The table below demonstrates the Group’s liquidity risk arising from financial liabilities: Contractual December 31, 2018 Book value Total cash out flow Less than 3 monhts 3-12 months 1-5 years More than 5 years Non derivative financial liabilities Financial liabilities 721.814.428 782.733.514 99.298.774 157.185.579 505.250.902 20.998.259 Trade payables - Related party 9.649.715 9.649.715 9.649.715 - - - - Other 90.314.824 90.314.824 15.099.434 75.215.390 - - Other liabilities 28.944.603 28.944.603 1.061.882 11.784.111 16.098.610 - Contractual December 31, 2017 Book value Total cash out flow Less than 3 monhts 3-12 months 1-5 years More than 5 years Non derivative financial liabilities Financial liabilities 341.352.806 382.225.752 7.003.936 66.863.548 288.377.590 19.980.678 Trade payables - Related party 11.262.592 11.262.592 11.262.592 - - - - Other 66.134.757 66.134.757 6.224.743 59.910.014 - - Other liabilities 21.175.765 21.175.765 303.957 8.339.041 12.532.767 - Currency risk The Group is exposed to foreign exchange rate risk through operations done using multiple currencies. The main principle in the management of this foreign currency risk is maintaining foreign exchange position in a way to be affected least by the fluctuations in foreign exchange rates. For this reason, the proportion of the positions of these currencies among each other or against Turkish Lira to shareholders’ equity is aimed to be controlled under certain limits. Derivative financial instruments are also used, when necessary. In this context, the Group’s primary method is utilizing forward foreign currency transactions. The Group is exposed to foreign exchange rate risk mainly for EUR, USD and GBP. As of December 31, 2018, other things being constant, if the TL was to appreciate/depreciate by 10% against the USD, the net profit/loss arising from foreign exchange gains/losses resulting over net foreign currency position in this currency would have been TL 2.545.690 (December 31, 2017: TL 2.342.731). As of December 31, 2018, other things being constant, if the TL was to appreciate/depreciate by 10% against the EUR, the net profit/loss arising from foreign exchange gains/losses resulting over net foreign currency position in this currency would have been TL 24.713.835 (December 31, 2017: TL (17.959.677)). As of December 31, 2018, other things being constant, if the TL was to appreciate/depreciate by 10% against the GBP, the net profit/loss arising from foreign exchange gains/losses resulting over net foreign currency position in this currency would have been TL 13.549 (December31, 2017: TL 14.973).