CELEBI GROUND HANDLING ANNUAL REPORT 2018

16 Çelebi Ground Handling 2018 Annual Report Occupational Safety Our Company has a management system that provides a secure and healthy work place for its employees and which uses risk evaluation to determine the risks and dangers employees may face, and which takes precautions, develops activities to reduce these dangers and risks in line with the requirements set out in labor law. The system’s OHS performance is continuously tracked where OHS aims are put into practice with management programs. Furthermore, our 30 stations and the Head Office hold the OHSAS 18001 certification. Social Activities & Internal Communication The Çelebi anniversary and seniority ceremonies, which are held at the Head Office and all our stations in honor of employees completing 5 years of service - and for each 5 years of subsequent service - continued to be organized at the Head Office and our stations in 2018. II- FINANCIAL RIGHTS PROVIDED TO THE MEMBERS OF THE GOVERNING BODY AND SENIOR MANAGEMENT At the annual general meeting of the Company held on 19 April 2018, shareholders approved the payment of a monthly honorarium of TL 6,000 to the independent members of the Company’s board and also voted not to pay any other honoraria to board members who are elected to represent Class A and Class B shareholders. Payments were made to the Company’s independent directors in 2018 pursuant to this resolution. No member of the Board of Directors has any outstanding obligations towards the Company that were carried forward from 2017. No member of the Board of Directors was given a loan or paid an advance by the Company in 2018. No member of the Company management has any outstanding obligations towards the Company that were carried forward from 2017. As of 31 December 2017, the Company was owed TL 70,000 in salary advances by its managers and this amount was paid in full within the January-December period. There are no loans made by the Company to its Board members or managers whose terms have been extended or otherwise improved; no sums have been lent to them as personal loans through third parties; neither have they been granted any form of surety such as guarantees etc. on their behalf. III - THE COMPANY’S ACTIVITIES AND MATERIAL DEVELOPMENTS IN ACTIVITIES 6. THE RELEVANT SECTOR, 2018 ACTIVITIES AND PERFORMANCE Civil Aviation Industry In the world… Figures for global passenger traffic pertaining to the end of 2018 indicate that demand (transported passenger-km or Revenue Passenger Kilometers, or RPK, increased by 6.5% compared to 2017. Despite a slowdown in growth compared to the 8% growth in 2017, the growth achieved exceeded the trend level. While capacity rose by 6.1%, the load factor stood at 81.9%, up 0.3 of a percentage point compared to 2017. High passenger demand figures were observed in 2018 as the aviation industry continued to support the global economy. Expectations for 2019 are similar, although growth - which slowed in the second half of 2018 due to reasons such as Brexit and trade disputes between the US and China - has lowered expectations, raising the prospect of some uncertainty. Air cargo volume (Freight Ton Kilometers, or FTK), carried for the global air transport markets on the basis of tones/kilometer increased by 3.5% in 2018 compared to 2017. Available Freight Ton Kilometer (AFTK) increased by 5.4% in 2018 and exceeded the annual growth rate. The following factors may have had an impact on these figures: • International e-commerce volume grew in 2018, • Global economic activity weakened, • The inventory renewal cycle, which aims to be able to respond quickly to demand, • Consumer confidence weakened when compared to the first months of 2018. BOARD OF DIRECTORS - 2018 ANNUAL REPORT